Victory Capital Holdings, Inc. (NASDAQ:VCTR) Q2 2019 Earnings Conference Call - Final Transcript
Aug 13, 2019 • 08:00 am ET
Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Victory Capital Second Quarter 2019 Earnings Call. [Operator Instructions]
Now, it is my pleasure to turn to call to Matt Dennis, Director of Investor Relations. You may begin.
Thank you, Carmen. Good morning.
Before I turn the call over to David Brown, I would like to note that today's discussion contains forward-looking statements and as such includes certain risks and uncertainties. Please refer to our press release and our SEC filings for more information on specific risk factors that could cause actual results to differ materially from those projected in the forward-looking statements.
While a recording of this call will be made available by us on our website, any forward-looking statements that we make on this call are based on assumptions as of today, and we undertake no obligation to update these forward-looking statements to reflect new information or future events that occur or circumstances that exist after the date on which they were made.
In addition to U.S. GAAP reporting, we also report certain financial measures that do not conform to Generally Accepted Accounting Principles. We believe these non-GAAP measures enhance the understanding of our business and our performance. Reconciliations between these non-GAAP measures and the most comparable related GAAP measures are included in the tables that can be found in our press release and in the slide presentation accompanying this call. Both can be accessed on the Investor Relations portion of our website at ir.vcm.com.
Now, I will turn the call over to David Brown, Chairman and CEO.
David C. Brown
Thank you, Matt. Good morning, and welcome to Victory Capital's second quarter 2019 earnings call. I'm joined today by Mike Policarpo, our President, Chief Financial and Administrative Officer, as well as Matt Dennis, our Director of Investor Relations.
I'm going to spend a few minutes discussing our business results, the USAA Asset Management Company acquisition, as well as our decision to initiate a quarterly cash dividend, which we believe is a meaningful development for our shareholders. Then I will turn it over to Mike, who will review our financial results for the quarter. Following our prepared remarks, Mike, Matt and I will be available to take questions.
We'll start on Slide 5. I'm pleased to report that our investment and financial results were excellent in the second quarter. AUM for Victory Capital grew to $64.1 billion as of June 30, 2019. AUM as of July 31, 2019, inclusive of the USAA Asset Management Company acquisition, was $147.8 billion. Additionally, net flows were positive at $3.7 billion for the quarter and $2.6 billion through the first six months of the year. Gross flows were robust for the quarter at $7.5 billion. I am pleased to report that, as of today, net flows are positive for this quarter for the combined business as well.
We also announced the initiation of a quarterly cash dividend. The first dividend of $0.05 per share will be payable on September 25, 2019, to