Brokerage and investment advisory services and fees differ and it is important for you to understand these differences. Victory Capital offers both types of services under two affiliated entities: Victory Capital Services, a registered broker-dealer and Victory Capital Management, a registered investment adviser. Read the Customer Relationship Summary for Victory Capital Services here. Read the Customer Relationship Summary for Victory Capital Management here.
Victory Capital Services, Inc. (“we” or “us”) is registered with the Securities and Exchange Commission as a broker- dealer and is a member of the Financial Industry Regulatory Authority. Brokerage and investment advisory services and fees differ and it is important for you to understand these differences. Free and simple tools are available to research firms and financial professionals at investor.gov/crs, which also provides educational materials about broker-dealers, investment advisers, and investing.
We offer the following investment services:
We provide recommendations to open, contribute, or consolidate assets in accounts offered by us or our Proprietary Investment Product sponsors. We also provide recommendations for investing in specific Proprietary Investment Products. We make our recommendations by considering your investment objectives, risk tolerance, and other relevant information. We do not make recommendations on third-party investment products. As a result, we may decline to make a recommendation to you.
We do not provide ongoing monitoring of your investments; however, you may request a recommendation for new or existing Proprietary Investment Products at any time via our contact center or online platform. In all cases, you make the ultimate decision regarding the purchase or sale of investments.
Additional details regarding the Proprietary Investment Products, including investment minimums, fees and expenses, investment objectives, and risks associated with each investment product can be found in each Proprietary Investment Product’s regulatory or offering documents. Additional details regarding our self-directed brokerage platform can be found in the Customer Account Agreement for Brokerage Accounts. These documents and other important resources are available at vcm.com or upon request.
We do not charge a fee for the recommendations described above, but you will pay other fees, including account fees, product fees, and fees for buying and selling certain securities.
You may pay fees that are charged by the investment product in which you invest. These may include management fees, sales charges, 12b-1 fees, and 529 plan sponsorship fees, which are described in each investment product’s prospectus, 529 plan description, or private placement memorandum. We and our affiliates benefit when you invest in Proprietary Investment Products because Proprietary Investment Products pay us and our affiliates all or a portion of these fees in exchange for investment management, brokerage, and other services.
If you invest on our self-directed brokerage platform, you will also pay an account maintenance fee. You may pay transaction fees or service fees for buying and selling certain securities. You may pay fees for custodial or administrative services, such as wire transfers, returned checks, retirement account closeouts, and account transfers. We have an incentive to encourage you to transfer or consolidate your assets on the self-directed brokerage platform because we expect to be compensated when you do. Please refer to our Fee Schedule for Brokerage Accounts for more information about fees for self-directed brokerage.
You will pay these fees and costs whether you make or lose money on the investments. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying. Additional information regarding fees and costs is available at vcm.com or upon request.
When we provide you with a recommendation, we have to act in your best interest and not put our interest ahead of yours. At the same time, the way we make money creates some conflicts with your interests. You should understand and ask us about these conflicts because they can affect the recommendation we provide you. Here are some examples to help you understand what this means.
Proprietary Products: We only recommend transactions involving Proprietary Investment Products. As discussed above, we and our affiliates earn fees for providing management, brokerage, and other services to the Proprietary Investment Products. This creates an incentive for us to recommend Proprietary Investment Products over other investments. The compensation earned by us and our affiliates varies depending on the Proprietary Investment Product we recommend, which creates an incentive to recommend Proprietary Investment Products for which we receive more compensation.
Third-Party Payments: We do not recommend third-party products, but we do offer and support third-party products on our self-directed brokerage platform. We have an incentive to offer and support products that pay revenue sharing or distribution (12b-1) fees over products that do not.
Additional information regarding our conflicts of interest can be found in the Regulation Best Interest Disclosure Brochure, available at vcm.com or upon request.
Our financial professionals who provide recommendations to you are paid a salary and may be eligible for employer-sponsored benefits. We do not compensate our financial professionals based on the specific recommendations they make to you. However, we pay certain financial professionals additional incentive compensation for reaching sales activity targets, including the number of recommendations made and new assets invested with us and our affiliates. In addition, financial professionals are eligible for annual incentive compensation on a discretionary basis depending on the overall financial performance of us and our affiliates and the financial professional’s job performance. These forms of compensation may encourage your financial professional to act in a way that maximizes the overall financial performance of us and our affiliates.
Yes. You can visit investor.gov/crs for a free and simple search tool to research us and our financial professionals.
You can find additional, up-to-date information about our services and request a copy of the relationship summary at vcm.com/crs or by calling 1-800-235-8396.
Victory Capital Management Inc. (“we” or “us”) is registered with the Securities and Exchange Commission as an investment adviser. Brokerage and investment advisory services and fees differ and it is important for you to understand these differences. Free and simple tools are available to research firms and financial professionals at investor.gov/crs, which also provides educational materials about broker-dealers, investment advisers, and investing.
We provide discretionary and non-discretionary investment services to retail investors directly and through unaffiliated wrap fee programs (“Third Party Wrap Programs”).
Discretionary means we will buy and sell investments in your account without asking you in advance. These investments will be consistent with the specific strategy and reasonable restrictions agreed upon in our agreement with you.
Non-discretionary means we provide advice and another party decides what investments to buy and sell. For non discretionary services, our advice consists of investment models delivered to Third Party Wrap Program sponsors. The sponsors, not you or us, decides what investment to buy and sell.
Investments in a discretionary and non discretionary account may include ETFs and/or mutual funds managed by us (the “Proprietary Investment Products”).
We monitor all services on a continual basis; this is a standard service provided to all investment advisory clients.
For additional information about our services, account minimums, and other items please see our Form ADV, Part 2A, in particular Items 4, 5, and 7 which can be found at https://adviserinfo.sec.gov/firm/summary/106189.
For our discretionary services, you pay us the quarterly asset based fee stated in your agreement with us. The more assets you have in your account, the more you will pay in fees. We therefore have an incentive to encourage you to increase the assets in your account. You also will incur third party fees and costs, such as custodian and brokerage fees, for example.
For our non discretionary services, the Third Party Wrap Program sponsors pay us a portion of the fee they charge you. We do not charge you directly. Asset based fees associated with a wrap fee program will include most transaction costs and fees to a broker dealer or bank that has custody of these assets, and therefore may be higher than a typical asset based advisory fee.
You will incur additional fees related to investments made in Proprietary Investment Products, such as mutual funds, as disclosed in each Product’s prospectus, which can be found at vcm.com/prospectus.
You will pay these fees and costs whether you make or lose money on the investments. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying.
For additional information, please see our Form ADV Part 2A, in particular Item 5, which can be found at https://adviserinfo.sec.gov/firm/summary/106189.
When we act as your investment adviser, we have to act in your best interest and not put our interest ahead of yours. At the same time, the way we make money can create some conflicts with your interests. You should understand and ask us about these conflicts because they can affect the investment advice we provide you. Here are some examples to help you understand what this means.
For additional information on our practices and potential conflicts please see our Form ADV Part 2A brochure, in particular Items 4, 5, 6, 10, 11, 12, and 17, which can be found at https://adviserinfo.sec.gov/firm/summary/106189.
Our financial professionals are paid a salary and eligible for employer sponsored benefits. In addition, they are eligible for discretionary incentive compensation based on a percentage of our revenue attributable to fees paid by your account. These forms of compensation may encourage your financial professional to act in a way that maximizes his or her compensation.
No. You can visit investor.gov/crs for a free and simple search tool to research us and our financial professionals.
You can find additional, up-to-date information about our services and request a copy of the relationship summary at vcm.com/crs or by calling 1-877-660-4400.
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