Victory Capital Holdings Inc (VCTR) 2024 Q1 法說會逐字稿

Good morning and welcome to the Victory Capital first quarter 2024 earnings conference. I hope all callers are in a listen-only mode. Following the company's prepared remarks, there will be a question-and-answer session.

早安，歡迎來到勝利資本 2024 年第一季財報會議。我希望所有呼叫者都處於只聽模式。在公司準備好的發言之後，將進行問答環節。

I will now turn the call over to Mr. Matthew Dennis, Chief of Staff and Director of Investor Relations. Please go ahead, Mr. Dennis.

我現在將把電話轉給辦公室主任兼投資者關係總監馬修·丹尼斯先生。請繼續，丹尼斯先生。

Thank you. Before I turn the call over to David Brown, I would like to remind you that during today's conference call we may make a number of forward-looking statements. Please note that Victory Capital's actual results may differ materially from these statements. Please refer to our SEC filings for a list of some of the risk factors that may cause actual results to differ materially from those expressed on today's call.

謝謝。在我將電話轉給大衛布朗之前，我想提醒您，在今天的電話會議中，我們可能會發表一些前瞻性聲明。請注意，勝利資本的實際結果可能與這些陳述有重大差異。請參閱我們向 SEC 提交的文件，以了解可能導致實際結果與今天電話會議中表達的結果有重大差異的一些風險因素清單。

Victory Capital assumes no duty and does not undertake any obligation to update any forward-looking statements. Our press release that was issued after the market closed yesterday disclosed both GAAP and non-GAAP financial results. We believe the non-GAAP measures enhance the understanding of our business and our performance.

勝利資本不承擔更新任何前瞻性陳述的責任和義務。我們在昨天收盤後發布的新聞稿披露了 GAAP 和非 GAAP 財務業績。我們相信非公認會計原則衡量標準可以增強對我們業務和績效的了解。

Reconciliations between these non-GAAP measures and the most comparable GAAP measures are included in tables that can be found in our earnings press release and in the slide presentation accompanying this call, both of which are available on the Investor Relations portion of our website at ir.vcm.com.

這些非公認會計原則衡量標準與最具可比性的公認會計原則衡量標準之間的對帳包含在我們的收益新聞稿和本次電話會議隨附的幻燈片演示文稿中的表格中，這兩個表格都可以在我們網站的投資者關係部分找到，網址為： .vcm.com。

It is now my pleasure to turn the call over to David Brown, Chairman and CEO. David?

現在我很高興將電話轉給董事長兼執行長大衛布朗。大衛？

Thanks, Matt. Good morning, and welcome to Victory Capital's first quarter 2024 earnings conference call. I'm joined today by Michael Policarpo, our President, Chief Financial and Administrative Officer; as well as Matt Dennis, our Chief of Staff and Director of Investor Relations.

謝謝，馬特。早安，歡迎參加勝利資本 2024 年第一季財報電話會議。今天我們的總裁、財務和行政官 Michael Policarpo 也加入了我的行列。以及我們的幕僚長兼投資者關係總監 Matt Dennis。

I will start today by providing an overview of the quarter. After that, I will provide a quick summary of the memorandum of understanding with a Amundi that we announced last month before I turn the call over to Mike to review the financial results in greater detail following our prepared remarks, Mike, Matt and I will be available to take your questions.

我將從今天開始概述本季。之後，我將簡要介紹我們上個月宣布的與 Amundi 的諒解備忘錄，然後我將電話轉給 Mike，以便在我們準備好的發言之後更詳細地審查財務業績，Mike、Matt 和我將可以回答您的問題。

The quarterly business overview begins on slide 5. During our last earnings call, we commented on our improving business dynamics and the beginning of a constructive environment we were seeing in sales activity as 2023 came to a close. This momentum continued through the first quarter with both gross and net sales reaching their best levels in more than a year during the first quarter of 2024.

季度業務概覽從幻燈片 5 開始。在我們上次的財報電話會議上，我們評論了我們不斷改善的業務動態以及隨著 2023 年接近尾聲我們在銷售活動中看到的建設性環境的開始。這一勢頭貫穿第一季度，2024 年第一季總銷售額和淨銷售額均達到一年多來的最高水準。

Our net long-term flows were positive in March, and total client assets rose more than 5% in the first quarter, aided by positive market action. We ended the quarter with a little more than $175 billion in client assets, providing us a good jump-off point. As we entered the second quarter, the fee rate on our AUM was 53 basis points and has been consistently within a basis point of the same level for the past year. Adjusted EBITDA margin was 52.1% for the quarter, which is industry leading and a testament to our focused execution, combined with the efficiency and effectiveness of our operating platform.

3 月份，我們的長期淨流量為正，在積極的市場行動的幫助下，第一季客戶總資產增加了 5% 以上。本季結束時，我們的客戶資產略高於 1,750 億美元，這為我們提供了一個很好的起點。進入第二季時，我們的 AUM 費用率為 53 個基點，並且一直處於去年同一水平的基點之內。本季調整後 EBITDA 利潤率為 52.1%，處於行業領先地位，證明了我們專注的執行力以及我們營運平台的效率和有效性。

Overall, we have an optimistic outlook for our business and are beginning to realize benefits from the investments we've been making across our platform. For example, the work and investment made securing attractive shelf space on numerous intermediary platforms for the products managed by our fixed income group, Victory income investors is paying off as the franchise turned net flow positive in the first quarter.

總體而言，我們對我們的業務前景持樂觀態度，並開始從我們在整個平台上進行的投資中獲益。例如，我們的工作和投資為我們的固定收益集團管理的產品在眾多中介平台上確保了有吸引力的貨架空間，隨著特許經營權在第一季度實現淨流量正值，勝利收益投資者正在獲得回報。

Victory income investors specifically generated strong momentum in the retail and retirement channels, which has carried over to the second quarter as well. We continue to strategically invest in areas that will have a positive impact on growth, such as new products and new vehicle wrappers for existing strategies.

勝利收入投資者特別在零售和退休管道中產生了強勁勢頭，這種勢頭也延續到了第二季度。我們繼續對對成長產生積極影響的領域進行策略性投資，例如現有策略的新產品和新車輛包裝。

We are spending a lot of time on our ETF lineup, associated staffing and the positioning of our products as we continue to build on our momentum. In addition, we are making investments in people and technology, particularly when it comes to data and analytics across our platform.

隨著我們繼續發展勢頭，我們在 ETF 產品陣容、相關人員配置和產品定位上花費了大量時間。此外，我們還在人員和技術方面進行投資，特別是在我們平台上的數據和分析方面。

Turning to slide 7. Our investment performance remained strong, with 69% of our AUM in mutual funds or ETFs earning overall four or five star ratings. This is broadly diversified encompassing 45 different products, up from 42 products at the beginning of the year over the critical three and five year periods 61% and 85% of our total AUM outperformed their respective benchmarks.

轉到投影片 7。我們的投資表現依然強勁，共同基金或 ETF 的資產管理規模中有 69% 獲得了四星級或五星級的整體評級。該產品廣泛多元化，涵蓋 45 種不同的產品，高於年初的 42 種產品，在關鍵的三年和五年期間，我們總 AUM 的 61% 和 85% 跑贏了各自的基準。

And on a relative ranking basis for the trailing three years, 34 funds representing nearly half of our AUM in mutual funds and ETFs were ranked in the top quartile of the respective categories by Morningstar as of the end of the first quarter.

從過去三年的相對排名來看，截至第一季末，占我們共同基金和 ETF 資產管理規模近一半的 34 檔基金在晨星公司的相關類別中排名前四分之一。

On slide 8, you can see our capital allocation strategy flywheels after returning a record amount of capital to shareholders. In 2023, we were restricted from conducting share repurchases due to our negotiations with a Amundi throughout the first quarter. We anticipate that to change as we move through the year and progress through the different stages of the transaction.

在投影片 8 上，您可以看到我們向股東返還創紀錄金額的資本後的資本配置策略飛輪。2023年，由於我們在第一季與東方匯理銀行進行談判，我們被限制進行股票回購。我們預計，隨著這一年的進展以及交易的不同階段的進展，這種情況將會改變。

As a growth company, reinvesting in our business for organic growth. Our acquisitions are the best way for us to deploy capital and increase shareholder value. During the quarter, we made our first earn-out payment to WestEnd advisors.

作為一家成長型公司，對我們的業務進行再投資以實現有機成長。我們的收購是我們部署資本和增加股東價值的最佳方式。在本季度，我們向 WestEnd 顧問支付了第一筆收益付款。

WestEnd continued to generate positive net flows and grow revenue since the acquisition with the addition of WestEnd models onto new distribution platforms and with expanding the number of financial advisors that are using their products. We expect this success to be sustained and accelerate moving forward.

自收購以來，WestEnd 繼續產生正的淨流量並增加收入，將 WestEnd 模型添加到新的分銷平台上，並擴大使用其產品的財務顧問的數量。我們期望這項成功能夠持續並加速向前發展。

We are projecting a much lower leverage ratio upon the close of the pending transaction with the Amundi, given the transaction doesn't include any debt. This will give us more flexibility as we look out at future acquisition opportunities. Moreover, this will provide us with a great foundation return, shareholder capital, multiple forms and even higher rate moving forward.

鑑於交易不包括任何債務，我們預計在與東方匯理銀行的待處理交易結束後，槓桿率將大幅降低。當我們尋找未來的收購機會時，這將為我們提供更大的靈活性。而且，這將為我們提供豐厚的基礎回報、股東資本、多種形式、甚至更高的未來利率。

One of the major objectives for the transaction is to provide a Mondi's global distribution network with more US managed investment products and strategies. This perfectly aligns with our inorganic growth strategy of bringing new products onto our platform through acquisitions. And these new products will be distributed through their global distribution network.

此交易的主要目標之一是為 Mondi 的全球分銷網絡提供更多美國管理投資產品和策略。這完全符合我們透過收購將新產品引入我們平台的無機成長策略。這些新產品將透過他們的全球分銷網絡進行分銷。

Turning to slide 9, I will quickly recap our MOU with Amundi. This is a strategic and multidimensional transaction that will materially and positively transform our company in many ways. The exclusive, 15-year global and reciprocal distribution agreements will greatly enhance the globalization of our firm by both expanding our distribution reach outside of the US market and by obtaining access to a wider range of high-quality investment products managed outside of the US to distribute in the US.

轉向投影片 9，我將快速回顧我們與 Amundi 的諒解備忘錄。這是一項策略性多維交易，將從多方面對我們公司產生實質和積極的轉變。為期 15 年的獨家全球互惠分銷協議將透過擴大我們在美國市場以外的分銷範圍以及獲得在美國境外管理的更廣泛的高品質投資產品來極大地增強我們公司的全球化。

The ability to feature Victory Capital's products in and sell through arguably one of the top global distribution networks in the world is extremely exciting and powerful. Through these agreements, Amundi will become the exclusive distributor of all Victory Capital products outside of the US and Victory Capital will be the exclusive distributor of Mundet products in the US.

能夠在可以說是世界頂級的全球分銷網絡之一中展示勝利資本的產品並進行銷售的能力是非常令人興奮和強大的。透過這些協議，Amundi將成為所有Victory Capital產品在美國以外的獨家經銷商，而Victory Capital將成為Mundet產品在美國的獨家經銷商。

Victory Capital will also be the exclusive provider of US manage active asset management products for Mondi's distribution network outside of the US, thereby opening a large and robust international distribution channel for our products to reach clients around the world. As a reminder, Mondi has a local presence in 35 countries and relationships with 1000 third-party distributors reaching more than 100 million retail clients and more than 1,500 institutional clients.

Victory Capital也將成為Mondi在美國以外分銷網絡的美國管理主動資產管理產品的獨家提供商，從而為我們的產品打開一個龐大而強大的國際分銷渠道，以到達世界各地的客戶。需要提醒的是，Mondi 在 35 個國家/地區開展業務，並與 1000 家第三方經銷商建立了合作關係，覆蓋超過 1 億零售客戶和 1,500 多家機構客戶。

Another important aspect of the transaction is the contribution of a Amundi's US business into Victory Capital in exchange for a 26.1% economic interest in Victory Capital that carries voting rights of 4.9%. This ownership stake in our firm is intended to align incentives and sets the foundation for success with the reciprocal distribution agreements, the combination of the Amundi US business into our business at significant size scale, along with complementary investment capabilities in fixed income equity and solution strategies.

該交易的另一個重要面向是東方匯理的美國業務向Victory Capital注資，以換取Victory Capital 26.1%的經濟權益，並擁有4.9%的投票權。我們公司的股權旨在調整激勵措施，並透過互惠分配協議、將東方匯理美國業務大規模合併到我們的業務以及固定收益股權和解決方案策略的互補投資能力，為成功奠定基礎。

It also immediately diversifies our client base with an increased international presence as more than a third of a Amundi US AUM is currently from non-US clients. While the transaction is dynamically strategic, it is also very attractive financially. The combination of the Amundi US business onto our platform aligns very well with our proven acquisition and integration playbook. We anticipate the low double digit EPS accretion by the end of the first full year of ownership and to achieve $100 million of expense synergies within the first two years of ownership with the majority of that realized within the first year.

它也立即使我們的客戶群多樣化，增加了國際影響力，因為目前東方匯理美國資產管理規模中有超過三分之一來自非美國客戶。雖然該交易具有動態戰略性，但在財務上也非常有吸引力。將東方匯理美國業務合併到我們的平台上與我們經過驗證的收購和整合策略非常吻合。我們預計，到所有權的第一個全年結束時，每股收益將實現兩位數的成長，並在所有權的頭兩年內實現 1 億美元的費用協同效應，其中大部分在第一年實現。

Just to be clear, it doesn't include any revenue synergies since we are not using cash or debt as consideration, the incremental earnings will significantly reduce our leverage ratio and provide additional strategic and capital flexibility. This will allow us to continue reinvesting in our business to drive organic growth as well as continue pursuing our inorganic growth initiatives while returning capital to shareholders in multiple forms, all of which is consistent with our long-term strategy.

需要明確的是，它不包括任何收入協同效應，因為我們不使用現金或債務作為對價，增量收益將顯著降低我們的槓桿率，並提供額外的策略和資本靈活性。這將使我們能夠繼續對業務進行再投資，以推動有機成長，並繼續推行無機成長計劃，同時以多種形式向股東返還資本，所有這些都符合我們的長期策略。

On slide 10, we highlight publicly available data from Morningstar on the Amundi US mutual funds, illustrating recent net flows and fund ratings information represents approximately $45 billion. Keep in mind that the total AUM for the Amundi US business is approximately $104 billion and a total US portion is $70 billion. So the $45 billion is just a piece of the overall total, but it does give some valuable insight into flows and investment performance.

在投影片 10 中，我們重點介紹了晨星公司 (Morningstar) 有關 Amundi 美國共同基金的公開數據，顯示近期淨流量和基金評級資訊約為 450 億美元。請記住，東方匯理美國業務的總資產管理規模約為 1,040 億美元，其中美國業務的總資產為 700 億美元。因此，450 億美元只是總額的一部分，但它確實提供了有關資金流和投資績效的一些有價值的見解。

Moreover, note that we disclosed in our analyst call announcing the MOU that the non-US portion of their business has had an average of $12 billion of annual gross flows a year over the last five years, and that each year has been net flow positive for this segment of their business over that same timeframe.

此外，請注意，我們在宣布諒解備忘錄的分析師電話會議中披露，過去五年中，其業務的非美國部分每年平均產生 120 億美元的年度總流量，並且每年均為正淨流量在同一時間段內針對這部分業務。

Net flows are shown by asset class. As you can see for a total US fund complex has been net flow positive for year-to-date 2024, with net inflows in fixed income and solutions products being partially offset by net outflows in equity funds. Given Amundi, US's strong investment performance and the fact that 77% of mutual funds are rated four or five stars overall by Morningstar.

淨流量以資產類別顯示。正如您所看到的，2024 年迄今為止，美國基金綜合體的淨流量為正，其中固定收益和解決方案產品的淨流入被股票基金的淨流出部分抵消。鑑於東方匯理、美國強勁的投資表現以及晨星公司 77% 的共同基金整體評級為四星或五星的事實。

We are projecting that the net flow profile of the business will continue to improve and benefit further from our added distribution resources and relationships post the close of the transaction. We are continuing to work through the final pieces to get to a definitive agreement and expect to announce to completion by the end of June with the closing expected by year-end.

我們預計，交易結束後，業務的淨流量狀況將繼續改善，並進一步受益於我們增加的分銷資源和關係。我們正在繼續完成最後的工作，以達成最終協議，並預計在 6 月底前宣布完成，預計在年底前完成。

With that, I will turn the call over to Mike to go through the quarter's financial results in greater detail. Mike?

接下來，我將把電話轉給麥克，讓他更詳細地了解本季的財務表現。麥克風？

Thanks, Dave, and good morning, everyone. The financial results review begins on slide 12. Average AUM increased 8% quarter over quarter and revenue rose $10.1 million to $215.9 million. Revenue realization remained steady with any quarter over quarter changed the result of asset and-or vehicle mix, GAAP operating income was $84.8 million and GAAP net income rose slightly to $55.7 million, or $0.84 per diluted share, up from $0.82 per share in the prior quarter.

謝謝戴夫，大家早安。財務業績審查從幻燈片 12 開始。平均資產管理規模較上季成長 8%，營收成長 1,010 萬美元，達到 2.159 億美元。Revenue realization remained steady with any quarter over quarter changed the result of asset and-or vehicle mix, GAAP operating income was $84.8 million and GAAP net income rose slightly to $55.7 million, or $0.84 per diluted share, up from $0.82 per share in the prior四分之一.

Adjusted EBITDA rose 4% to $112.4 million in the quarter, marking the highest quarterly level in over a year this was more than 13% higher than in the first quarter of last year. Margins were 52.1% for the quarter, which includes the impact of seasonally higher payroll tax and benefits that reset at the start of the year. We continue to guide to a long-term adjusted EBITDA margin of 49%.

本季調整後 EBITDA 成長 4%，達到 1.124 億美元，創下一年多來的最高季度水平，比去年第一季高出 13% 以上。本季利潤率為 52.1%，其中包括季節性上漲的工資稅和年初重置的福利的影響。我們繼續指導長期調整後 EBITDA 利潤率達到 49%。

Adjusted net income with tax benefit per diluted share increased 9% from the fourth quarter and by 16% from the same quarter in 2023, reaching $1.25. We continue to hold elevated cash balances to enhance our flexibility and ended the quarter with $80 million in cash. During the quarter, we made an earn-out payment of $80 million for the West End acquisition, reducing the overall earn-out liability on our balance sheet, our net leverage ratio remained at a modest 2.0 times. At quarter end.

調整後每股稀釋每股稅收優惠淨利較第四季成長 9%，較 2023 年同季成長 16%，達到 1.25 美元。我們繼續持有大量現金餘額以增強彈性，本季末現金餘額為 8,000 萬美元。本季度，我們為收購 West End 支付了 8,000 萬美元的盈餘付款，減少了資產負債表上的整體盈餘負債，我們的淨槓桿比率保持在適度的 2.0 倍。季度末。

We returned $35 million to shareholders in cash dividends and share repurchases in the quarter and announced a 10% increase in our quarterly cash dividend to $0.37 per share in the second quarter which will be paid on June 25 to holders of record on June 10.

本季我們透過現金股利和股票回購向股東返還了3,500 萬美元，並宣布第二季現金股利增加10%，達到每股0.37 美元，並將於6 月25 日支付給6 月10 日登記在冊的股東。

Turning to slide 13. Our total client assets remain balanced from a distribution channel perspective with the channel mix remaining very consistent over time. I would highlight that approximately 97% of our AUM has been managed for US clients, enhancing our geographic diversification as one of the benefits of the M&A transaction.

轉到投影片 13。從分銷管道的角度來看，我們的客戶總資產保持平衡，通路組合隨著時間的推移保持非常一致。我想強調的是，我們大約 97% 的資產管理規模是為美國客戶管理的，這增強了我們的地理多元化，這是併購交易的好處之一。

On a pro forma basis, post the close of the Amundi transaction, approximately 15% of our assets will immediately come from non-US clients and the global distribution agreement to promote and sell our products through the Mondi distribution engine. It is expected to increase the proportion of assets that we manage for non-US clients over time.

預計，在 Amundi 交易完成後，我們約 15% 的資產將立即來自非美國客戶和全球分銷協議，以透過 Mondi 分銷引擎推廣和銷售我們的產品。隨著時間的推移，預計我們為非美國客戶管理的資產比例將會增加。

slide 14 illustrates our flows. Long-term gross to net flows improved quarter over quarter and year over year, reaching their best levels in more than a year. With long-term gross sales of $7 billion and net long-term AUM outflows of $1 billion positive momentum accelerated towards the end of the quarter with long-term net flows.

投影片 14 說明了我們的流程。長期總流量與淨流量的比值環比和年比均有所改善，達到一年多來的最佳水準。長期總銷售額為 70 億美元，長期資產管理規模淨流出為 10 億美元，隨著長期淨流量，正向動能在本季末加速。

Turning positive during March, we have continued confidence that our investments to support organic growth have us well positioned with a very competitive investment performance and five of our investment franchises for net flow positive for the quarter.

3月份轉為正值，我們仍然相信，我們支持有機成長的投資使我們處於有利位置，具有非常有競爭力的投資業績，並且我們的五個投資特許經營權在本季度實現了正淨流量。

That list includes fixed income investors, Western advisors, integrity, sofas and RS. global. Moreover, our institutional channel continues to be an area of strength. It posted another quarter of positive net flows. Revenues are highlighted on slide 15 to enhance transparency. We began breaking out other assets in the first quarter because these assets are managed uniquely and carry unusually low fees that are not representative of our typical client assets for consistency Prior periods have been restated firm-wide.

名單包括固定收益投資者、西方顧問、誠信、沙發和RS。全球的。此外，我們的機構管道仍然是我們的優勢領域。該公司又公佈了一個季度的正淨流量。第 15 張投影片突顯了收入，以提高透明度。我們在第一季開始分解其他資產，因為這些資產的管理方式獨特，費用異常低，不能代表我們典型的客戶資產，以保持一致性。

The average fee rate on total AUM remained steady at 53 basis points, which is within our expected range this 53 basis points excludes the $5.1 billion of other assets that had an average fee rate of just 3.5 basis points.

總資產管理規模的平均費率穩定在 53 個基點，這在我們的預期範圍內。

Turning to expenses on slide 16. On a GAAP basis, operating expenses rose mainly due to higher noncash expenses. In particular, the change in valuation of contingent earn-out payments rose to $12.2 million which was more than $8 million higher than the fourth quarter. We also incurred over $1 million more of acquisition related expenses in the quarter and had higher compensation expenses related to the higher level of earnings and the seasonal resetting of employment taxes and benefits in the first quarter. These increases offset lower general and administrative expenses and depreciation and amortization in the quarter. Nonoperating expenses were essentially flat on a quarter-over-quarter basis.

轉向幻燈片 16 上的支出。依照公認會計準則計算，營運費用增加主要是因為非現金費用增加。特別是，或有盈利付款的估值變化升至 1,220 萬美元，比第四季度高出 800 萬美元以上。本季我們也多產生了超過 100 萬美元的收購相關費用，與第一季較高的收入水平以及就業稅和福利的季節性重置相關的補償費用也較高。這些增長抵消了本季度一般和管理費用以及折舊和攤銷的下降。非營業費用較上季基本持平。

On slide 17, we cover our non-GAAP metrics. Adjusted net income with tax benefit was $82.3 million. Adjusted EBITDA was $112.4 million, representing the highest level in over a year. Adjusted EBITDA margin was 52.1% and 51.6% for the trailing 12-month period, which is ahead of our long-term guidance of 49%.

在投影片 17 中，我們介紹了非 GAAP 指標。調整後的含稅收優惠淨收入為 8,230 萬美元。調整後 EBITDA 為 1.124 億美元，為一年多來的最高水準。過去 12 個月期間調整後 EBITDA 利潤率為 52.1% 和 51.6%，高於我們 49% 的長期指引。

We are maintaining our current guidance at 49%, which continues to provide us with the flexibility to invest in our platform. Moreover, as we have stated in the past, the margin will fluctuate quarter to quarter based on the timing and nature of investments. Finally, turning to slide 18, we continue to demonstrate strong balance sheet flexibility as we ended the quarter with $80 million in cash. Our debt level remains the same with our $100 million revolver undrawn.

我們維持目前 49% 的指導，這繼續為我們提供了投資平台的靈活性。此外，正如我們過去所說，利潤率將根據投資的時間和性質而按季度波動。最後，轉向投影片 18，我們繼續展現出強大的資產負債表彈性，本季結束時我們擁有 8,000 萬美元的現金。我們的債務水準保持不變，我們的 1 億美元左輪手槍尚未動用。

That concludes our prepared remarks. I will now turn it back over to the operator for questions.

我們準備好的演講到此結束。我現在將其轉回給接線員詢問。

Ladies and gentlemen, we will now begin the question-and-answer session. In order to ask a question, please press star then the number one on your telephone keypad. Your first question comes from the line of Alex Blostein with Goldman Sachs. Please go ahead.

女士們、先生們，我們現在開始問答環節。若要提問，請按星號，然後按電話鍵盤上的數字 1。你的第一個問題來自高盛的 Alex Blostein。請繼續。

Morning all. This is Luke on for Alex. Thanks for taking the question. With the products that you're set to onboard and integrate following the partnership with the Amundi and the acquisition of the Pioneer brand. How are you thinking about the organic growth trajectory of the business longer term? And are there any areas of the Pioneer business or aspects of the agreement that most excites you as it relates to potentially underwriting an improvement in organic growth?

大家早。這是盧克為亞歷克斯代言的。感謝您提出問題。在與 Amundi 合作並收購 Pioneer 品牌後，您將使用和整合的產品。您如何看待企業長期的有機成長軌跡？先鋒業務或協議中是否有任何領域最令您興奮，因為它涉及潛在的有機成長改進？

Good morning. I'd start off by saying the business today as it sits. The Amundi US businesses is growing on 2024, as we showed, at least on the mutual fund side on the publicly available data, it's actually in a positive organic growth mode and they've got excellent investment performance and have a lot of momentum, and I don't see that changing throughout the year. So we're pretty excited about generally the product set that they have and what they're doing today.

早安.我首先要說一下今天的情況。正如我們所表明的，東方匯理美國業務在 2024 年正在增長，至少在公開數據上的共同基金方面，實際上處於積極的有機增長模式，並且他們擁有出色的投資業績和很大的動力，並且我認為這一情況全年都不會改變。因此，我們對他們擁有的產品組合以及他們今天所做的事情感到非常興奮。

And when you put that into our distribution network, coupled with their existing distribution network, I think that sets up to really accelerate the momentum and specifically their fixed income platform, given the environment that we're in and the environment I think we're going to be in over the next couple of years is an exciting part of what Tom, what they are bringing.

當你將其放入我們的分銷網絡中，再加上他們現有的分銷網絡時，我認為這確實會加速這一勢頭，特別是他們的固定收益平台，考慮到我們所處的環境以及我想到我們所處的環境湯姆在接下來的幾年裡將帶來令人興奮的部分，他們將帶來什麼。

Additionally, a third of their existing assets are outside of the US, so they have a pretty well developed our distribution infrastructure outside of the US and then the ability for us. So the Victory legacy Victory products to plug into that is really exciting.

此外，他們現有資產的三分之一位於美國境外，因此他們在美國境外擁有相當發達的分銷基礎設施，並且為我們提供了能力。因此，插入 Victory 傳統 Victory 產品確實令人興奮。

And then generally speaking, just having in the US more distribution, marketing resources and then the exclusivity outside of the US through the M&A network and really sets us up for an opportunity to have really good organic growth. And I would say that given the environment that's coming around fixed income with our existing fixed income platform, I think we see we see the tide turning at least from an organic growth perspective.

一般來說，只要在美國擁有更多的分銷、行銷資源，然後透過併購網路獲得美國以外的獨家經營權，這確實為我們提供了實現真正良好有機成長的機會。我想說，考慮到我們現有的固定收益平台圍繞著固定收益的環境，我認為至少從有機成長的角度來看，我們看到了潮流的轉變。

Got you. Thank you. And one quick follow-up, if I can. Can you just give color on the asset mix and flow trends on Amundi across the data that we can see publicly through Morningstar. Thanks.

明白你了。謝謝。如果可以的話，還有一個快速跟進。您能否透過我們可以透過晨星公開看到的數據來說明 Amundi 的資產組合和流量趨勢。謝謝。

I can't it wouldn't be it wouldn't I don't have full transparency into it wouldn't be appropriate. But one thing I would add to what I had said before is keep in mind, the Amundi US business does not have an ETF platform.

我不能，不會，我沒有完全透明，這是不合適的。但我要補充的一件事是，請記住，Amundi 美國業務沒有 ETF 平台。

And one of the things we're anticipating is using our ETF platform and their investment manufacturing capabilities and bringing those things together. So I think that that's another added component of what the opportunity is.

我們期待的事情之一是利用我們的 ETF 平台及其投資製造能力，並將這些東西整合在一起。所以我認為這是機會的另一個附加組成部分。

Appreciate the color.

欣賞顏色。

Your next question comes from the line of Ken Worthington with JPMorgan. Please go ahead.

您的下一個問題來自摩根大通的肯沃辛頓。請繼續。

Hello. Good morning. Thanks for taking my question. This is Michael Cho for Ken Worthington today. I just wanted to touch on the Mondi distribution partnership here again, I realize and they have a clear economic stake to help incentivize that partnership. Can you also just talk through how some of their sales force or the operating level incentives might be executed. Could just give you some confidence around that success of the 15-year partnership.

你好。早安.感謝您提出我的問題。我是麥可‧曹，今天為肯‧沃辛頓報道。我只是想再次談談 Mondi 的分銷合作關係，我意識到他們有明確的經濟利益來幫助激勵這種合作關係。您能否也談談他們的一些銷售人員或營運層面的激勵措施是如何執行的？這只會讓您對 15 年合作關係的成功充滿信心。

So outside of the US, and we will be the exclusive provider of US manufactured active asset management capabilities. So all of the distribution outside of the US that is drawing upon US manufacturing. So any of the products any of their clients that are desiring products that are manufactured in the US will come from Victory Capital, the pro forma Victory Capital.

因此，在美國之外，我們將成為美國製造的主動資產管理功能的獨家提供者。因此，美國以外的所有分銷都依賴美國製造。因此，任何需要在美國製造的產品的客戶都將來自勝利資本，即形式上的勝利資本。

And so if you think about portfolios outside of the US and the allocation to the US markets going forward, we will be the exclusive provider of all of those allocations. So that's pretty powerful given Amundi, $2.2 trillion. And that they've there. And they've got 1,500 institutional clients, really a local presence in 35 countries around the world, and I believe they're in about a 1,000-distributor network.

因此，如果您考慮美國以外的投資組合以及未來對美國市場的配置，我們將是所有這些配置的獨家提供者。因此，鑑於 Amundi 的 2.2 兆美元，這是相當強大的。他們就在那裡。他們擁有 1,500 個機構客戶，實際上是在全球 35 個國家/地區開展業務，我相信他們屬於一個由大約 1,000 家經銷商組成的網路。

So very, very powerful distribution, and then we'll be providing them the US manufactured aspect of it on as today, the Amundi, US businesses and others. We'll now have the exclusive right to do that.

非常非常強大的分銷，然後我們將為他們提供美國製造的部分，就像今天一樣，Amundi、美國企業和其他公司。我們現在將擁有這樣做的獨家權利。

Great. Thank you.

偉大的。謝謝。

And then just to follow up on some on near term trends, I think you called out net flows turn positive. And Mark, just curious what was kind of the key driver for that inflection exiting the quarter? And then any thoughts on flows that you saw in April and maybe into May as well?

然後，為了跟進一些近期趨勢，我認為您指出淨流量轉為正值。馬克，只是好奇本季退出的關鍵驅動因素是什麼？那麼您對 4 月甚至 5 月的流量有何想法？

So we've seen a return, as we highlighted in the prepared remarks on the fixed income side. So Victory income investors, our ETF platform, Victory shares or institutional channel continues to be strong. And then generally speaking, our investment performance is really, really solid, and that's supporting a good momentum.

正如我們在固定收益方面準備好的評論中所強調的那樣，我們已經看到了回報。所以勝利收益投資者、我們的ETF平台、勝利股份或機構通路繼續表現強勁。總的來說，我們的投資表現非常非常穩健，這支撐了良好的勢頭。

On looking into the second quarter, we don't we don't give guidance a quarter by quarter on flows. But we don't see are any of that really changing ex any market change in market conditions.

展望第二季度，我們不會逐季度提供流量指引。但我們沒有看到任何真正的變化，除了市場條件的任何變化。

Great. Thank you.

偉大的。謝謝。

Your next question comes from the line of Etienne Ricard with BMO Capital Markets. Please go ahead.

您的下一個問題來自 BMO 資本市場的 Etienne Ricard。請繼續。

Thank you and good morning, team. So clearly another strong margin quarter as you look into closing the month in US transaction and what gives you confidence that Victory can maintain its operating discipline and margin levels considering the meaningful increase in AUM. In other words, we typically think of scale as an advantage for margins, but in Victory's case, up to what point in scale do you believe you can maintain that culture and of operating efficiency?

謝謝你，早安，團隊。因此，當您考慮結束本月美國交易時，顯然又一個利潤率強勁的季度，考慮到資產管理規模的顯著增長，是什麼讓您相信勝利可以維持其運營紀律和利潤水平。換句話說，我們通常認為規模是利潤的優勢，但就勝利的情況而言，您認為您可以維持這種文化和營運效率到什麼規模？

Will, I think we we've guided towards on keeping the 49% guidance we have today, and we reiterate that in the pro forma business, we've obviously exceeded the 49% guidance over the last few years, but we've also highlighted that it'll ebb and flow based on the investments we're making on. So we're very confident in the 49% in the pro forma organization.

威爾，我認為我們已經指導保持今天的 49% 指導，並且我們重申，在預計業務中，我們在過去幾年中明顯超過了 49% 的指導，但我們也強調它會根據我們正在進行的投資而潮起潮落。所以我們對備考組織的49%非常有信心。

On our track record and history of integration. And when we talk about integration, we talk about smartly integrating, I think, is on top of the industry. And we have a lot of confidence that, the principles of Victory Capital on are the right principles on how to run an investment management organization for the future. And we think that those principles will be able to partner with a Amundi US.

關於我們的業績記錄和整合歷史。當我們談論集成時，我們談論的是智慧集成，我認為這是行業中的佼佼者。我們非常有信心，勝利資本的原則是未來如何運作投資管理組織的正確原則。我們認為這些原則將能夠與 Amundi US 合作。

And those people that work for Amundi US. will adopt the principles we have to maintain our culture. I don't think that on anything that we have seen and all the diligence we have done, and we have been working on this for a while, gives us any reason to believe that we wouldn't be able to maintain our culture and the margins and our operating discipline on going forward.

還有那些為 Amundi US 工作的人。將採用我們必須維持我們的文化的原則。我認為，我們所看到的任何事情、我們所做的所有努力以及我們已經為此工作了一段時間的努力，都沒有讓我們有任何理由相信我們將無法維持我們的文化和利潤率和我們未來的營運紀律。

And even as we think about additional acquisitions post Amundi US, it would be that would be this the same story.

即使我們考慮在 Amundi US 之後進行更多收購，情況也會是同樣的情況。

Okay, great. And staying on that on the topic of expenses, how do you think about the pace of realizations on the $100 million as expense synergies for '25?

好的，太好了。繼續討論費用主題，您如何看待 25 年 1 億美元費用綜效的實現速度？

Good morning. Yes. So I think as we had said in our prepared remarks and Dave just highlighted the level of the work that we've done, we're very confident in $100 million expense synergy and that we have put out there and had kind of and have commented on. And we also said that we expected to realize them over two years, really with the majority of those coming in the first year.

早安.是的。因此，我認為正如我們在準備好的發言中所說的那樣，戴夫剛剛強調了我們所做的工作水平，我們對1 億美元的支出協同效應非常有信心，我們已經在那裡發布了，並且已經發表了評論在。我們也表示，我們預計將在兩年內實現這些目標，其中大部分將在第一年實現。

And as Dave mentioned, our track record in our history of integration and expense realization, I think kind of speaks for itself. And we have a pretty-time-tested and well-thought-out plan with respect to integration. And we believe we'll execute on that with respect to the Amundi acquisition as well.

正如戴夫所提到的，我們在整合和費用實現方面的歷史記錄，我認為這是不言而喻的。我們在整合方面有一個經過相當時間考驗和深思熟慮的計劃。我們相信我們也會在 Amundi 收購方面執行這一點。

Great thank you very much.

非常感謝。

Your next question comes from the line of Michael Cyprus with Morgan Stanley. Please go ahead.

你的下一個問題來自摩根士丹利的邁克爾·塞浦路斯。請繼續。

Great, thank you. Just wanted to circle back to the distribution agreement that you have with Amundi with respect to selling their products into the US. Just hoping you might be able to elaborate on how that might work. Maybe you could talk about the economics, what that can mean for Victory and what strategies of Mondi's do you think could make the most sense to sell into the US over time?

太好了謝謝。只是想回到您與 Amundi 簽訂的關於將其產品銷售到美國的分銷協議。只是希望您能夠詳細說明它是如何工作的。也許您可以談談經濟學，這對 Victory 意味著什麼，以及您認為隨著時間的推移，Mondi 的哪些策略對向美國銷售產品最有意義？

How many products do you envision selling and how do you navigate prioritizing selling their products in the US versus your products?

您預計銷售多少產品？

Yes, I'd start off by saying is they have a good manufacturer investment manufacturing capability outside of the US. There are a few products that that today we think there's an opportunity to sell. One maybe example would be an emerging market debt product or maybe on a product that on that is like that may be through an institutional channel.

是的，我首先要說的是，他們在美國以外擁有良好的製造商投資製造能力。今天我們認為有一些產品有機會出售。一個可能的例子是新興市場債務產品，或者可能是透過機構管道發行的類似產品。

So, it will be there will be a number of products that they have based on the market conditions that will move through different channels. As far as priorities on our sales force, he's used to selling and has come up with a system of selling multiple products of different asset classes. So it isn't really about what the prioritization is. It's really about accepting what the client demand is.

因此，他們將根據市場情況推出多種產品，並透過不同的管道進行銷售。就我們銷售人員的優先事項而言，他習慣於銷售，並提出了一個銷售不同資產類別的多種產品的系統。所以這並不是真正的優先順序是什麼。這實際上是關於接受客戶的需求。

So, we're well, this is really part of what we do today. So we're well on schooled on how to do that on the economics of it will be, very similar to what from our perspective, very similar to the to what we have today, selling our own products.

所以，我們很好，這確實是我們今天所做的一部分。因此，我們很清楚如何做到這一點，這在經濟學上非常相似，從我們的角度來看，與我們今天銷售我們自己的產品非常相似。

So the margin requirements we have with products, some of our own will be that will be the same. Some really will be the same margins on wood products that we sell into the US. And it really just gives us another avenue to get closer two different clients by being able to offer them a wider range of investment solutions and capabilities.

因此，我們對產品的保證金要求，我們自己的一些產品將是相同的。有些木製品的利潤確實與我們銷往美國的木製品相同。它確實為我們提供了另一條途徑，透過為兩個不同的客戶提供更廣泛的投資解決方案和能力來拉近他們的距離。

Great. And just a follow-up question on the margin profile. I hear you on reiterating the synergies coming through. You're sticking to the 49% margin profile. But just curious, as you think about this large transaction, it seems like it can enhance your scale revenues coming on at high incremental margins.

偉大的。關於保證金概況的後續問題。我聽到您重申了所產生的協同效應。您堅持 49% 的利潤率。但只是好奇，當你想到這筆大筆交易時，它似乎可以提高你的規模收入，並以高增量利潤實現。

So just hoping maybe you could elaborate on some of the moving pieces there and offsets that lead you to maintain the margin outlook. Maybe you could talk about how much you're looking to spend. It seems like maybe there's an underlying on net spend. How much you're looking to invest back in the business and what are the top areas?

因此，希望您能詳細說明其中的一些變化因素以及導致您維持利潤前景的抵消措施。也許你可以談談你打算花多少錢。看來淨支出可能有潛在的問題。您希望在業務上投資多少？

Yes. So we've guided towards $100 million of synergies. And then the 49%. The $100 million of synergies is a net number. We will invest a significant amount of money into the platform. And a lot of that will be into the US intermediary portion of our business distribution portion of our business. And so we will continue to invest on our platform. And I think one of the major advantages we have is the way our platform is set up.

是的。因此，我們的目標是實現 1 億美元的綜效。然後是 49%。1 億美元的綜效是一個淨數字。我們將向該平台投入大量資金。其中很大一部分將進入我們業務分銷部分的美國中間部分。因此，我們將繼續投資我們的平台。我認為我們擁有的主要優勢之一是我們平台的建立方式。

Is we have the ability to invest and invest in a way where it's very efficient and I think you can see that by the margins. So a lot of what we're going to be doing is investing, even though you see $100 million of cost synergies, it will be a net number and we will be investing heavily back into the platform as we are today.

我們是否有能力進行投資，並以一種非常有效率的方式進行投資，我想你可以透過利潤看到這一點。因此，我們要做的很多事情都是投資，儘管你看到 1 億美元的成本協同效應，但這將是一個淨數字，我們將像今天一樣對平台進行大量投資。

Great. Thank you.

偉大的。謝謝。

As a reminder, if you would like to ask a question, (Operator Instructions) Your next question comes from the line of Adam Beatty with UBS. Please go ahead.

提醒一下，如果您想提出問題，（操作員說明）您的下一個問題來自 UBS 的 Adam Beatty。請繼續。

Thank you and good morning, first, I wanted to focus in on solutions a little bit. Obviously, West End doing well, the Mondi US business had positive flows in their solutions business. So hoping to get maybe a fuller picture of the solutions business that among the US will bring in, from the complementary nature of it versus what Victory already has and whether or not those businesses will be kind of integrated into one sort of solutions provider, or remain somewhat separate? Thank you.

謝謝大家，早安，首先，我想專注於解決方案。顯然，West End 表現良好，Mondi 美國業務的解決方案業務也出現了積極的成長。因此，希望能夠更全面地了解美國將引入的解決方案業務，從它與 Victory 已有業務的互補性，以及這些業務是否會整合到一種解決方案提供者中，或者保持一定程度的分離？謝謝。

Good morning, Adam. The solutions business for them on the US business, it's really a multi-asset offering. So very similar to the offering some of the offerings that Victory has within victory. Our solutions include multi-asset. It also includes some risk based as well as targeted product as well as our rules-based ETF business.

早安，亞當。他們在美國業務上的解決方案業務，實際上是一種多元資產產品。與勝利中的一些奉獻非常相似。我們的解決方案包括多元資產。它還包括一些基於風險和目標的產品以及我們基於規則的ETF業務。

We don't envision consolidating the Amundi US solutions business into our platform. They are distinct enough and will remain under the kind of current Amundi US investment team platform. We are excited about the opportunity to take on additional solutions offerings.

我們不打算將 Amundi US 解決方案業務整合到我們的平台中。它們足夠獨特，並將保留在目前東方匯理美國投資團隊平台下。我們很高興有機會提供額外的解決方案。

And we think there's an opportunity, as Dave mentioned earlier, to take some of the product set that a Amundi US offers and package those into ETF offerings that we think will have a tremendous opportunity to see organic growth going forward as they currently don't have an ETF offering.

正如Dave 之前提到的，我們認為有機會採用Amundi US 提供的一些產品組合並將其打包成ETF 產品，我們認為這些產品將有巨大的機會看到未來的有機增長，因為它們目前還沒有看到有機成長。

Great. That's helpful. That fills it out. Thanks. And then just as a follow-up, kind of the reverse of Mike's question around distribution in terms of on Victory and a Amundi, US. products being distributed through Amundi outside the US. I'm just wondering, you mentioned that a lot of those products right now, obviously come from when the US, but there are also other providers.

偉大的。這很有幫助。這樣就填滿了。謝謝。然後，作為後續行動，麥克關於勝利和阿蒙迪（美國）的分配問題有點相反。產品透過 Amundi 在美國境外分銷。我只是想知道，你提到現在很多產品顯然來自美國，但也有其他供應商。

So just wanted to get a sense of kind of the asset mix within those other providers where Victory might be kind of taking some share there? Thank you.

所以只是想了解其他提供者的資產組合，勝利可能會在那裡佔據一些份額？謝謝。

I think there's a couple of elements to it. First is. there's probably an under allocation from the Mondi clients in the US product. So part of this is actually open space that we'll be taking. And you think about the evolving platform that they have, where they are in China, they are in India, and what's happening in some of those countries, around allocation to US markets over a longer period of time.

我認為其中有幾個要素。首先是。 Mondi 客戶對美國產品的分配可能不足。因此，其中一部分實際上是我們將佔用的開放空間。你會想到他們擁有的不斷發展的平台，他們在中國，他們在印度，以及其中一些國家正在發生的事情，圍繞著較長一段時間內對美國市場的分配。

So some of this is prospective on what is we anticipate happening. And so that's the first piece I think the second piece is there are some other solutions that are on their platform outside the US. I would say that we'll probably take some of that market share. I would presume and they'll have an economic incentive to want to do that, because and they'll have a 26.1% economic stake in our \business.

因此，其中一些是對我們預期發生的事情的前瞻性。這是第一部分，我認為第二部分是在美國以外的平台上還有一些其他解決方案。我想說我們可能會佔據一些市場。我認為他們會有經濟動機想要這樣做，因為他們將在我們的業務中擁有 26.1% 的經濟股份。

And I would also just reiterate that the Amundi US business, if you average that over the last five years is $12 billion a year in gross flows on that part of their business has been net flow positive over the last five years. And then, I think with our added product set and then as I mentioned before, our desire and ability to reinvest in the platform, I would imagine that would only accelerate as we think about going forward.

我還要重申的是，如果過去五年平均每年總流量為 120 億美元，那麼東方匯理美國業務在過去五年中一直為正淨流量。然後，我認為隨著我們增加的產品集，然後正如我之前提到的，我們對平台進行再投資的願望和能力，我想隨著我們考慮前進，這只會加速。

And then, you put just underneath all of that is we have excellent investment performance from a firm-wide perspective. So the products we would be able to offer the Mondi clients, it would have really good investment performance. And then we also have the ability to create new product and go out and acquire new products.

然後，從整個公司的角度來看，我們擁有出色的投資績效。因此，我們能夠向 Mondi 客戶提供的產品，將具有非常好的投資績效。然後我們也有能力創造新產品並出去獲取新產品。

Great. So it sounds like you have more of a bigger pie situation than straight subs. Thanks a lot. Appreciate it.

偉大的。所以聽起來你的情況比直接潛水艇的情況更大。多謝。欣賞它。

Correct.

正確的。

I will now turn the call back over to David Brown for closing remarks. Please go ahead.

現在，我將把電話轉回給大衛布朗，讓他發表結束語。請繼續。

Thank you. And again, thank you for your interest in Victory Capital. We look forward to keeping you updated on the Amundi transaction as we move forward and to the definitive agreement that we anticipate by the end of the second quarter. Have a wonderful day.

謝謝。再次感謝您對勝利資本的關注。隨著我們的進展以及我們預計在第二季末達成的最終協議，我們期待向您通報東方匯理交易的最新情況。祝你有美好的一天。

This concludes today's call. Thank you all for joining us, and you may now disconnect your lines.

今天的電話會議到此結束。感謝大家加入我們，現在您可以斷開線路了。