Monday, November 11, 2019

USAA San Antonio

Dear Professor Kaufman,

I just tried to move investment funds into CD in their bank operation.
It would let me add money to investment funds but not withdraw money.
What a mess.

I had been looking to move all monies into USAA to prepare for a move to Texas.
I have been with USAA nearly 50 years.

Now looking to move all moneys out.
To local banks with walk-in services I already use several.

All these big banks have big troubles.
Recent years had a number of problems with them.
would be fun to recount that idiocy.

Local with walk-in service gives better interest rates and much easier to deal with.

USA needs to return to the ban on interstate banking.
Banks become dysfunctional when they get too big, idiots from nowhere trying to do stuff they cannot do.

Banking is not rocket science.
If they stay local and involved with savers and borrowers in their local area.
Like food, should be fresh and local.
Like back in the old days.

Banking used to be efficient and bankers were not so greedy and rich,
just another job.

1960s radicals took over, bill Clinton hippies, etc.
got rid of Glass Steagall many protections.

Now they just hope too big to fail will force taxpayers to pay for losses when the next big crash comes.

Looking bad now, huge debts everywhere.

Hi Joe;

I hope they are able to continue.

I have a Subscribers Account with them that I cannot withdraw unless I liquidate my policies,
which I don't want to do.

If they go belly up, I lose that account which I have had for 60 years.

This latest bout of insurance devastation in California has hit them hard with fire insurance policies,

especially in Paradise where most of the population were retirees from the service carrying USAA.

That recovery plus their drop in the number of service personnel and ex-service members dying off has hit them hard.

I still believe their base and management is good, however, and they are adjusting, perhaps one reason to get out of the mutual fund business.

I hope they continue.


From: joe

Dear Professor Kaufman,

USAA sold its mutual funds business to an minor unknown player? derivatives traders?

I guess the insurance company and bank is still ok.

Could the investments business bring down the whole company?


Victory Capital to pay $1 billion -- of mostly other people's money -- for USAA mutual funds and use of its sweet brand—

Victory who?

The Brooklyn, Ohio firm doubles its assets to $144 billion, adding USAA's $69 billion to Munder, RS Investments, Harvest and other assets -

-Brooklyn where?

November 7, 2018 — 3:27 PM by Brooke Southall

Brooke's Note: Here's a roll-up play operating under the radar. But no more.

A group of shrewd executives in a Cleveland 'burb has a plan, a pile of debt and now a marquee deal.

If this deal works out, the sky is the limit.

But if you listen to the 47-minute analyst call, you'll be struck by which questions didn't get answered as much as the ones that did.

Loaded to the gills with debt, Victory Capital is paying $1 billion -- $850 million guaranteed —

for USAA's mutual fund business with a bet based on a belief that USAA has a great brand but did a lousy job of marketing its funds on the investment side.

Stuart Parker, CEO USAA

Stuart Parker believes Victory Capital is well positioned to provide a broader selection of leading-edge investment solutions

The Brooklyn, Ohio roll-up firm, founded in 2013, is borrowing $1.4 billion to buy $69.2 billion in assets under management in 53 investment funds from the San Antonio, Texas insurer.

Less than half the assets in USAA Asset Management Company are active equity funds.

Excluded from the deal are $11 billion of "managed assets," which may be USAA's wealth manager.

The play hinges on Victory's ability to digest the USAA deal.

If it can pull that off, it can begin to run the table with the dozens of nervous mutual-fund firms with good brands and investing, but declining businesses.

"I think we're as well-positioned as anyone to be a consolidator in the business," says Victory CEO David Brown. "This shows the kind of quality (brand) we can attract to this platform."

Victory Capital's $1.4 billion in loans also covers its pending purchase of Harvest Volatility Management, which had $12 billion in assets under management as of July 31.

It manages derivatives from New York City.

Victory has already bought 11 other brands, including RS Investments and Munder Capital.

Peppered with questions

Multiple Wall Street analysts on a call today (Nov. 7) with Victory executives peppered them with questions about how fast they could pay down all that debt.

Victory execs bristled at the questions, declining to answer other than to say:

"We've operated at these levels [of debt being three times equity] before."

Dan Seivert: I think it is a very smart move for USAA the seller to get out…especially while times are good

Victory's financial engineering includes an IPO completed in February, giving it a market capitalization of $664 million.

Described at the time as a multi-boutique asset management firm with $62 billion in AUM, Victory raised $152 million by offering 11.7 million shares at $13, well below the estimated range of $17 to $19.

Shares of Victory [VCTR] jumped 20

Wednesday (Nov. 7) after the USAA deal got reported, but the stock, weighted by its debt profile, remains in single digits at $9.78, up $1.63 from $8.15.

USAA also had a lackluster prior 12 months with neutral flows -- a trend expected to change because the USAA funds were mainly offered to USAA members.

Only 1.5 million insurance customers use the funds, with 11 million abstaining.

See: At mostly morose Morningstar conference, mutual fund wholesalers play cards face-up on perma-dislocation -- and the glimmers of hope that innovation provides


January 10, 2019

New Location Supports Future Growth and

Expands Pools of Talent


Victory Capital (NASDAQ: VCTR) today announced that it will move its corporate headquarters from Cleveland, Ohio, to San Antonio, Texas.

David Brown, Chairman and Chief Executive Officer for Victory Capital, will be relocating to San Antonio along with several other senior level executives.

Headquartering in San Antonio offers Victory Capital the opportunity to cost-effectively build out its operational infrastructure while also recruiting and maintaining top talent.

The decision follows Victory Capital's announcement of its planned acquisition of San Antonio-based USAA Asset Management Company.

"San Antonio will play an important role in the future growth of our organization.

It will enhance our ability to access new pools of talent and further develop the technology and operational platforms that support our integrated multi-boutique business model," said Mr. Brown.

San Antonio was recently ranked as the "fastest growing city in the nation" for population growth by the U.S. Census Bureau

and it ranks at the forefront of several key industries, including financial services,

according to the San Antonio Economic Development Foundation ("SAEDF").

Information from the SAEDF also cites the strong pool of talent in the city, which

includes 160,000 students at 20 different area colleges, universities and research institutions.

"Victory Capital's decision to make San Antonio its headquarters reinforces the benefits that our city and state have to offer major employers from both a business environment and quality-of-life perspective,"

said Jenna Saucedo-Herrera, CEO of the SAEDF.

"We are proud to be a city of choice for major employers such as Victory Capital."

"We believe that San Antonio offers our employees the opportunity to live in an innovative and culturally rich city with an exceptional climate and competitive cost of living,"

Mr. Brown added. "We are excited to join the community."

Victory Capital plans to maintain a significant presence in Cleveland. Additionally, it has nine other offices in the U.S. and three outside the U.S. that will not be impacted.

Victory Capital expects to open its San Antonio headquarters in mid-2019.

The acquisition of USAA Asset Management Company is expected to close in the second quarter of 2019, and is subject to regulatory and other customary approvals, conditions and consents, including approval by USAA mutual fund and ETF shareholders and Board of Trustees.

About Victory Capital

Victory Capital is a global investment management firm operating a next-generation, integrated multi-boutique business model with $52.8 billion in assets under management as of December 31, 2018.

Victory Capital's differentiated model is comprised of nine Investment Franchises, each with an independent culture and investment approach.

Additionally, the Company offers a rules-based Solutions Platform, featuring the VictoryShares ETF brand, as well as custom and multi-asset class solutions.

The Company's Investment Franchises and Solutions Platform are supported by a centralized distribution, marketing and operational environment, in which our investment professionals can focus on the pursuit of investment excellence.

Victory Capital provides institutions, financial advisors and retirement platforms with a variety of asset classes and investment vehicles, including separately managed accounts, collective trusts, mutual funds, ETFs, UCITs and UMA/SMA vehicles.

For more information, please visit

Go to for ETF prospectuses or for mutual fund prospectuses.

They are not affiliated with Foreside Fund Services, LLC.

Investing involves risk including loss of principal.

Victory Mutual Funds and USAA Mutual Funds are distributed by Victory Capital Advisers, Inc. (VCA).

VictoryShares ETFs and VictoryShares USAA ETFs are distributed by Foreside Fund Services, LLC (Foreside). VCA and Foreside are members of FINRA and SIPC.

Victory Capital Management Inc. (VCM) is the investment adviser to the Victory Mutual Funds, USAA Mutual Funds, VictoryShares ETFs and VictoryShares USAA ETFs. VCA and VCM are not affiliated with Foreside.

USAA is not affiliated with Foreside, VCM, or VCA. USAA and the USAA logos are registered trademarks and the USAA Mut

USAA member for 64 years and voted with my feet to leave USAA brokerage.

The whole deal stinks! Why Victory Capital?

Are the sale proceeds going to be distributed to USAA members of the mutual association, after all we elect the BOD.

USAA has lost the original reason for its existence, getting bigger but not getting better.

Still a good company but not as good as it once was.

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