Introduces Active Fixed Income and U.S. Mid Cap
ETFs that Integrate ESG Criteria
Victory Capital Holdings, Inc. (NASDAQ: VCTR) (“Victory Capital”
or the “Company”) today announced that its wholly owned investment
adviser, Victory Capital Management Inc., has launched three new
active ETFs under the VictoryShares brand, all of which integrate
Environmental, Social and Governance (“ESG”) criteria into their
respective processes. The new transparent, active strategies offer
investors Victory Capital’s ESG and well-established active
capabilities in core plus fixed income, corporate bonds and U.S.
mid cap equities in an ETF wrapper.
Two of the ETFs, VictoryShares ESG Corporate Bond ETF (UCRD) and
VictoryShares ESG Core Plus Bond ETF (UBND), are managed by USAA®
Investments, a Victory Capital Investment Franchise. The third ETF,
VictoryShares THB Mid Cap ESG ETF (MDCP), is managed by the
Company’s THB Asset Management℠ Franchise.
“Active ETFs continue to gain traction with investors seeking to
access managers who have proven successful in mutual funds and
other investment vehicles,” said Mannik Dhillon, CFA, CAIA,
President, VictoryShares and Solutions. “We are thrilled to offer
our clients ETF strategies that blend our deep experience in active
management with an ESG lens, which today’s investors are
increasingly seeking.”
UCRD and UBND seek to provide investors with above-average
income through yield-focused portfolios. UCRD offers exposure to
primarily investment-grade corporate bonds and UBND offers exposure
to intermediate-term bonds. “These new ETFs are distinct in that
they combine our bond-by-bond fundamental analysis with our
sophisticated, proprietary ESG scoring system,” said James Jackson,
CFA, Head of Fixed Income Portfolio Management for USAA
Investments.
“MDCP invests in a focused, high-conviction portfolio of
approximately 30 mid cap stocks that our team believes represent
high-quality, low-risk businesses with the potential to prudently
grow shareholder equity over time,” said Christopher Cuesta, CFA,
Chief Investment Officer for THB Asset Management. “We are excited
to bring our team’s long history of integrating ESG factors into
our investment process to investors through an ETF vehicle.”
About Victory Capital Victory Capital is a diversified
global asset management firm with $164.9 billion in assets under
management as of August 31, 2021. The Company operates a
next-generation business model combining boutique investment
qualities with the benefits of a fully integrated, centralized
operating and distribution platform.
Victory Capital provides specialized investment strategies to
institutions, intermediaries, retirement platforms and individual
investors. With 10 autonomous Investment Franchises and a Solutions
Platform, Victory Capital offers a wide array of investment styles
and investment vehicles including, actively managed mutual funds,
separately managed accounts, active ETFs, multi-asset class
strategies, custom-designed solutions, private funds and a 529
College Savings Plan.
For more information, please visit www.vcm.com or follow us:
Twitter and LinkedIn.
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These statements may include, without limitation, any
statements preceded by, followed by or including words such as
“target,” “believe,” “expect,” “aim,” “intend,” “may,”
“anticipate,” “assume,” “budget,” “continue,” “estimate,” “future,”
“objective,” “outlook,” “plan,” “potential,” “predict,” “project,”
“will,” “can have,” “likely,” “should,” “would,” “could” and other
words and terms of similar meaning or the negative thereof. Such
forward-looking statements involve known and unknown risks,
uncertainties and other important factors beyond Victory Capital’s
control such as the COVID-19 pandemic and its effect on our
business, operations and financial results going forward, as
discussed in our “Risk Factors” and elsewhere in our Company’s
filings with the SEC, that could cause Victory Capital’s actual
results, performance or achievements to be materially different
from the expected results, performance or achievements expressed or
implied by such forward-looking statements.
Such forward-looking statements are based on numerous
assumptions regarding Victory Capital’s present and future business
strategies and the environment in which it will operate in the
future. Any forward-looking statement made in this press release
speaks only as of the date hereof. Except as required by law,
Victory Capital assumes no obligation to update these
forward-looking statements, or to update the reasons actual results
could differ materially from those anticipated in the
forward-looking statements, even if new information becomes
available in the future.
ESG investing is defined as utilizing environmental, social, and
governance (ESG) criteria as a set of standards for a company’s
operations that socially conscious investors use to screen
potential investments.
Victory Capital and its affiliates are not affiliated with
United Services Automobile Association or its affiliates. USAA and
the USAA logos are registered trademarks and the USAA Investments
logo is a trademark of United Services Automobile Association and
is being used by Victory Capital and its affiliates under
license.
Carefully consider the Funds’ investment objectives, risks,
charges and expenses before investing. To obtain a prospectus or
summary prospectus containing this and other important information,
visit www.victorysharesliterature.com or call 800.991.8191. Read
it carefully before investing.
VictoryShares ETFs are distributed by Foreside Fund Services,
LLC, member FINRA. Victory Capital Management Inc. is the adviser
to the VictoryShares ETFs. Victory Capital is not affiliated with
Foreside Fund Services, LLC.
Investments involve risk including possible loss of
principal. ETFs have the same risks as the underlying
securities traded on the exchange throughout the day. Redemptions
are limited and often commissions are charged on each trade. ETFs
may trade at a premium or discount to their net asset value. The
Adviser’s integration of responsible investing or ESG
considerations may result in the Fund forgoing some market
opportunities available to funds that do not apply such
considerations. Responsible investing considerations may be linked
to long-term rather than short-term returns. The ETFs may invest in
non-U.S. securities. International investments may involve risk of
capital loss from unfavorable fluctuation in currency values, from
differences in generally accepted accounting principles or from
economic or political instability in other nations.
To the extent the VictoryShares THB Mid Cap ESG ETF invests in a
small number of issuers and/or focuses it investments in select
industries, it may be more subject to a decline in value of a
single security or industry than a more broadly invested fund.
Investments in mid-cap companies typically exhibit higher
volatility. Investments in mid-cap companies typically exhibit
higher volatility.
The fixed income ETFs are subject to interest rate, inflation,
credit and default risk. The bond market is volatile. Bonds and
bond funds will decrease in value as interest rates rise and vice
versa. Credit risk refers to the possibility that debt issuers may
not be able to make principal and interest payments or may have
their debt downgraded by ratings agencies.
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version on businesswire.com: https://www.businesswire.com/news/home/20211005005243/en/
Investors: Matthew Dennis, CFA Chief of Staff Director,
Investor Relations 216-898-2412 mdennis@vcm.com
Media: Tricia Ross 310-622-8226 tross@finprofiles.com
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