Release Date: February 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: As we look out into 2025, what strategies do you expect to be most in favor and contribute the most to organic growth? A: David Brown, CEO, highlighted that the VictoryShares ETF platform is performing well and is expected to continue growing. Additionally, the institutional channel presents numerous opportunities, with a significant pipeline of unfunded projects. The integration with Amundi is also anticipated to enhance growth, given Amundi's positive net flows and strong start in 2025.
Q: On the Amundi deal, what sort of revenue synergies do you expect, and how soon do you expect to see flow benefits from the distribution partnership? A: Michael Policarpo, CFO, explained that the 15-year exclusive distribution agreement with Amundi is expected to enhance organic growth. While specific details are not yet available, the addition of Victory products to Amundi's global distribution network is anticipated to be beneficial. The focus is on evaluating which Victory products will be introduced through this channel.
Q: Victory's margins continue to rise. Could you discuss any margin differences across different products or vehicles? A: Michael Policarpo noted that Victory's single operating platform allows for significant scale and efficiency, with over two-thirds of expenses being variable. The ETF business, despite slightly lower revenue realization, remains as profitable as other channels due to its active and rules-based nature. This structure supports strong margins across all product vehicles.
Q: Regarding the Amundi and potential introduction of Victory products in non-US distribution, how rapidly could you introduce products, and what are the key gating factors? A: David Brown stated that the introduction of Victory products will occur throughout 2025 and into 2026. Initially, existing Amundi US products will continue to drive flows, with Victory products being registered and introduced gradually. Each geography will have its own regulatory requirements, but the existing infrastructure of Amundi US will facilitate this process.
Q: Can you provide an update on the Amundi US business's AUM and flow trends? A: Michael Policarpo reported that Amundi US was net flow positive in 2024, with $2.6 billion in net flows across various products. The AUM at year-end was approximately $114 billion. The business has exceeded expectations, with strong investment performance and positive momentum continuing into 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.免責聲明:投資有風險,本文並非投資建議,以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請,作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考,不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證,投資者應自行研究並在投資前尋求專業建議。