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Victory Capital
Customer Relationship Summaries

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

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. 

 

What investment services and advice can you provide me?

We distribute mutual funds and a 529 education savings plan (the “Proprietary Investment Products”) managed by our affiliate, Victory Capital Management Inc. We provide recommendations to retail investors for investing in the Proprietary Investment Products. We form our recommendations by taking into account your investment objectives, risk tolerance, and other financial information. These recommendations are limited to investments in the Proprietary Investment Products. As a result, we may not have an appropriate product to recommend to you.

We do not provide ongoing monitoring of your investments in the Proprietary Investment Products; 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. Investors do not open or maintain accounts with us and instead transact directly with the applicable Proprietary Investment Product (i.e., the mutual funds and 529 education savings plan).

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 the Proprietary Investment Products’ prospectuses and 529 plan description, available at vcm.com/prospectus.

 

Start a conversation with your financial professional by asking these key questions about our services.

  • Given my financial situation, should I choose a brokerage service?
  • Why or why not?
  • How will you choose investments to recommend to me?
  • What is your relevant experience, including your licenses, education and other qualifications?
  • What do these qualifications mean?

What fees will I pay?

We do not charge a fee for the Proprietary Investment Product recommendations described above. Instead, you will pay a variety of fees at the investment level that are charged by the particular Proprietary Investment Product in which you invest. These fees and costs include management fees, sales charges, 12b-1 fees, and 529 plan sponsorship fees. The fees and costs charged by the Proprietary Investment Products are described in each investment product’s prospectus or 529 plan description. We and our affiliates benefit when you accept our recommendations and invest in the Proprietary Investment Products because the Proprietary Investment Products pay us and our affiliates all or a portion of these fees and costs for investment management, brokerage, and other services.

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 our fees and costs can be found in each investment product's prospectus or 529 plan description.

 

Start a conversation with your financial professional by asking these key questions about our services.

  • Help me understand how these fees and costs might affect my investments. If I give you $10,000 to invest, how much will go to fees and costs, and how much will be invested for me?

What are your legal obligations to me when providing recommendations? How else does your firm make money and what conflicts of interest do you have?

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 in the Proprietary Investment Products. As discussed above, we and our affiliates earn fees for providing management, brokerage, and other services to the Proprietary Investment Products, and the fees vary depending on the product. This creates an incentive for us to recommend certain Proprietary Investment Products for which we receive a higher fee. These fees may also incentivize us to encourage you to invest more money to increase the amount of our affiliates’ assets under management. Click here for additional information regarding our conflicts of interest.

 

Start a conversation with your financial professional by asking these key questions about our services.

  • How might your conflicts of interest affect me, and how will you address them?

How do your financial professionals make money?

Our financial professionals who provide recommendations to you are paid a salary and may be eligible for employer-sponsored benefits. 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. We do not compensate our financial professionals based on the recommendations made, dollar amount invested, or any other investor-based metric. 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.

Do you or your professionals have legal or disciplinary history?

Yes. You can visit investor.gov/crs for a free and simple search tool to research us and our financial professionals.

 

Start a conversation with your financial professional by asking these key questions about our services.

  • As a financial professional, do you have any disciplinary history? For what type of conduct?

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.

Start a conversation with your financial professional by asking these key questions about our services.

  • Who is my primary contact person? Is he or she a representative of an investment adviser or a broker dealer? Who can I talk to if I have concerns about how this person is treating me?



Victory Capital Management

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. 

 

What investment services and advice can you provide me?

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.

 

Start a conversation with your financial professional by asking these key questions about our services.

  • Given my financial situation, should I choose an investment advisory service? Why or why not?
  • How will you choose investments to recommend to me?
  • What is your relevant experience, including your licenses, education and other qualifications? What do these qualifications mean?

What fees will I pay?

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.

 

Start a conversation with your financial professional by asking these key questions about our services.

  • Help me understand how these fees and costs might affect my investments. If I give you $10,000 to invest, how much will go to fees and costs, and how much will be invested for me?

What are your legal obligations to me when providing recommendations? How else does your firm make money and what conflicts of interest do you have?

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.

  • Proprietary Products: We and our affiliates earn fees for providing services to the Proprietary Investment Products, and the fees vary depending on the product. The fees we earn for these services give us, and if shared with your financial professional give him or her, an incentive to recommend Proprietary Investment Products to you over non Proprietary Investment Products.

  • Personal Trading: All of our employees, including your financial professionals, are subject to a Code of Ethics that seeks to ensure their personal trading activities do not conflict with your account and our investment models.

  • Brokerage Practices: Brokerage practices refer to both the way we execute transactions for your account and the way we distribute our models to Third Party Wrap Program sponsors. Several conflicts can arise through these practices including selection of brokers, aggregation of orders, and timing of model deliveries.

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.

 

Start a conversation with your financial professional by asking these key questions about our services.

  • How might your conflicts of interest affect me, and how will you address them?

How do your financial professionals make money?

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.

Do you or your professionals have legal or disciplinary history?

No. You can visit investor.gov/crs for a free and simple search tool to research us and our financial professionals.

 

Start a conversation with your financial professional by asking these key questions about our services.

  • As a financial professional, do you have any disciplinary history? For what type of conduct?

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.

Start a conversation with your financial professional by asking these key questions about our services.

  • Who is my primary contact person? Is he or she a representative of an investment adviser or a broker dealer? Who can I talk to if I have concerns about how this person is treating me?