80%* 100% IctoryCapi 42 Total Mutual Funds and ETFs with 4- or 5-Star overall ratings 70% Total Mutual Funds and ETFs AUM with 4- or 5-Star overall ratings % of AUM outperforming benchmarks % of strategies outperforming benchmarks 84% 62%* | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|---------------|---------------|---------------|----------------|-------|---------------|---------------|---------------|----------------| | | | | | | | | | | | | | | | | 79% | | | 63% | 62% | 63% | | ...

Financial Data and Key Metrics Changes - Revenue for Q3 2023 was $209.7 million, up 2.7% from Q2 2023, benefiting from higher average AUM and one extra day in the quarter [20] - Adjusted EBITDA margin was 51.1%, marking the 13th consecutive quarter above the long-term guidance of 49% [7][32] - Adjusted net income rose to $1.18 per diluted share, a 6% increase from $1.11 in the previous quarter [8][21] - Assets under management (AUM) at quarter end were $153.5 billion, with average AUM increasing by 2.4% compared to Q2 2023 [19] Business Line Data and Key Metrics Changes - Long-term gross flows were $5.3 billion, while net long-term flows were negative $1.7 billion, indicating a decline in net flows [25] - WestEnd Advisors franchise reported positive net flows and significant distribution expansion, contributing to overall performance [10][14] - RS Global franchise has been net flow positive for 10 consecutive quarters, with strong performance metrics [27] Market Data and Key Metrics Changes - The overall market environment has seen many investors opting for cash and cash equivalents, impacting gross sales and allocations to higher-risk asset classes [25][46] - The company noted that 98% of WestEnd's AUM outperformed respective benchmarks over the five-year period, indicating strong market positioning [15] Company Strategy and Development Direction - The company is focusing on strategic investments in product development, technology, and digital marketing to enhance competitiveness [13] - There is an ongoing emphasis on inorganic growth opportunities, with a disciplined approach to evaluating potential acquisitions [17] - The consolidation of the INCORE franchise under the Victory Income Investors brand aims to enhance scalability and brand recognition [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for positive net flows in fixed income as investors may eventually reallocate from cash to traditional assets [40][46] - The company remains patient and selective regarding M&A opportunities, with a strong pipeline and improved execution capabilities [36][41] - Management highlighted the importance of strong investment performance as a key factor in attracting future investments [40] Other Important Information - The company generated $43 million in cash from monetizing a floating to fixed interest rate swap, enhancing financial flexibility [16][22] - Cash increased to $108 million at quarter end, reflecting a strategy to build cash reserves for future opportunities [21] Q&A Session Summary Question: Update on M&A pipeline and valuation multiples - Management indicated a full pipeline with improved execution capabilities, but no imminent transactions are expected [36] Question: Details on SMA and other flows - The growth in flows is primarily attributed to the WestEnd Advisors franchise, with expectations for continued growth in model business [37] Question: Promoting fixed income strategies - Management has built out distribution channels for the Victory Income Investors franchise and emphasized strong investment performance [40] Question: Potential size of transactions for M&A - Management is open to various transaction sizes and remains opportunistic in evaluating potential deals [41] Question: Impact of financing costs on M&A - Financing costs are not seen as a hurdle for executing transactions, given the company's strong cash generation capabilities [50] Question: Update on New Energy Capital's organic growth - Positive flows were noted, with optimism for continued growth in the renewable energy space [51] Question: Update on WestEnd's growth and platforms - WestEnd has expanded its platform presence and product offerings, showing strong growth potential [53]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission file number 001-38388 Victory Capital Holdings, Inc. (Exact name of registrant as specified in its charter) (State or other ju ...

Financial Data and Key Metrics Changes - Long-term net flows improved with outflows of $1 billion compared to $1.2 billion in the first quarter, excluding a passive mandate redemption [6][8] - Average AUM was flat quarter-over-quarter, while average fee realization rose to 52.1 basis points, contributing to higher revenue [6][20] - Revenue increased to $204.2 million in the second quarter from $201.3 million in the first quarter, driven by higher fee rate realization [20] - GAAP operating income was $87.5 million, and adjusted EBITDA was $104 million, both up from the previous quarter [20] - Adjusted net income rose to $75.9 million or $1.11 per diluted share, up from $1.08 in the previous quarter [8][20] Business Line Data and Key Metrics Changes - Investment performance remained strong, with 42 mutual funds and ETFs rated four or five stars by Morningstar, accounting for nearly two-thirds of AUM [10][11] - Positive net flows were recorded in five franchises, including Integrity and New Energy Capital, with WestEnd showing consistent net flow positivity since its acquisition [22][23] - The fee rate increased by 0.4 basis points, marking the highest fee rate realization in the past four quarters [24] Market Data and Key Metrics Changes - AUM increased nearly 2% from $158.6 billion at the end of March to $161.6 billion by the end of June [19][21] - Industry-wide softness in gross sales persisted, with investors hesitant to enter the market due to volatility, leading to a preference for cash holdings [22][43] Company Strategy and Development Direction - The company continues to invest in organic growth initiatives and strategic acquisitions, with a focus on enhancing shareholder value [14][55] - The launch of a new brokerage platform aims to cross-sell investment strategies and improve client engagement [29][30] - The company is optimistic about capturing inflows into fixed income products as the Fed's tightening cycle subsides [12][35] Management's Comments on Operating Environment and Future Outlook - Management anticipates a shift from money market investments to longer-duration fixed income as investor confidence returns [35][43] - The company remains patient and selective in evaluating acquisition opportunities, with expectations of increased M&A activity in the industry [37][56] - Management noted that gross flows have been soft due to investor caution, but they expect a significant movement of funds once clarity on the Fed's direction is achieved [43][44] Other Important Information - The company celebrated its 10th anniversary as an independent entity, highlighting significant growth in AUM and revenue since its management buyout [15][16] - The net leverage ratio improved to 2.3 times at the end of June, reflecting growth in earnings and a higher cash position [27] Q&A Session Summary Question: Opportunity to cross-sell strategies with the new brokerage platform - Management expressed optimism about cross-selling investment strategies to both current and new clients, emphasizing the importance of product choice [29][30] Question: Scale potential and investor interest in New Energy Capital - Management indicated that New Energy Capital is in its early stages, with positive net flows and plans for launching new funds [31][32] Question: Expectations for fixed income flows in the second half of the year - Management believes that as investor confidence grows, there will be a pivot from money market investments to longer-duration fixed income products [34][35] Question: Changes in M&A valuation multiples and financing conditions - Management noted that sellers have adjusted their expectations, leading to more conversations about potential acquisitions [36][37] Question: Comments on margin results and future guidance - Management reaffirmed their long-term margin guidance of 49%, citing a strong operating platform and consistent performance [40][42] Question: Broader investor sentiment and flow trends - Management acknowledged soft gross flows but noted potential for movement as clarity on the Fed and the economy improves [43][44] Question: Capital allocation strategy and focus areas for inorganic growth - Management emphasized a balanced approach to capital allocation, prioritizing inorganic growth while maintaining flexibility [50][53][54]

Second Quarter 2023 Earnings Presentation August 4, 2023 Forward Looking Statements This presentation may contain "forward-looking" statements that are based on our beliefs and assumptions and on information currently available to us. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, competitive position and potential organic and inorganic growth opportunities. Forward-looking statements include all statements that are not hi ...

[PART I — FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Victory Capital Holdings, Inc.'s unaudited condensed consolidated financial statements, highlighting **$2.54 billion** in total assets, decreased revenue and net income, and significant cash used in financing activities [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2023, total assets were **$2.538 billion**, slightly down from year-end 2022, with significant goodwill and intangible assets, while total liabilities increased to **$1.492 billion** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $43,780 | $38,171 | | Goodwill | $981,805 | $981,805 | | Other intangible assets, net | $1,297,574 | $1,314,637 | | **Total Assets** | **$2,538,421** | **$2,540,899** | | **Liabilities & Equity** | | | | Consideration payable for acquisition of business | $239,300 | $230,400 | | Long-term debt, net | $987,376 | $985,514 | | **Total Liabilities** | **$1,492,320** | **$1,475,489** | | **Total Stockholders' Equity** | **$1,046,101** | **$1,065,410** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2023 total revenue decreased to **$204.2 million** from **$216.0 million** in Q2 2022, with net income falling to **$56.7 million** due to lower fees and acquisition-related expense swings Q2 and H1 2023 vs 2022 Performance (in thousands, except per share data) | Metric | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $204,226 | $216,006 | $405,546 | $446,025 | | Income from Operations | $87,526 | $119,326 | $162,091 | $220,865 | | Net Income | $56,671 | $79,205 | $105,944 | $150,478 | | Diluted EPS | $0.83 | $1.09 | $1.53 | $2.05 | | Dividends Declared per Share | $0.32 | $0.25 | $0.64 | $0.50 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations decreased to **$141.6 million** in H1 2023, with **$132.0 million** used in financing activities, primarily for share repurchases and dividends Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $141,562 | $165,055 | | Net cash used in investing activities | ($3,922) | ($7,152) | | Net cash used in financing activities | ($132,034) | ($184,585) | | Net increase (decrease) in cash | $5,609 | ($26,815) | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, contingent consideration from acquisitions, fair value measurements, debt structure, a new **$100.0 million** share repurchase program, and interest rate swap hedging - Revenue primarily derives from investment management, fund administration, and distribution fees, recognized over time based on a percentage of **Assets Under Management (AUM)**[37](index=37&type=chunk)[38](index=38&type=chunk)[40](index=40&type=chunk) - Contingent consideration liabilities for USAA AMCO and WestEnd acquisitions, totaling **$239.3 million** as of June 30, 2023, are re-measured to fair value, impacting earnings[80](index=80&type=chunk)[85](index=85&type=chunk) - A new **$100.0 million** share repurchase program was approved in March 2023, with **$51.9 million** remaining available as of June 30, 2023[109](index=109&type=chunk)[111](index=111&type=chunk) - The company uses a floating-to-fixed interest rate swap with a notional value of **$450 million** to hedge long-term debt, fixing the rate at **3.149%** through July 2026[123](index=123&type=chunk)[124](index=124&type=chunk)[208](index=208&type=chunk) - On August 3, 2023, the Board declared a regular quarterly cash dividend of **$0.32 per share**[134](index=134&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses performance, noting AUM increased to **$161.6 billion** despite net outflows, while revenue and net income decreased year-over-year due to lower average AUM and contingent consideration changes [Overview](index=26&type=section&id=Overview) Victory Capital is a diversified global asset management firm with **$161.6 billion** in AUM, operating a next-generation model with 12 Investment Franchises and a new direct investor platform - Victory operates a business model combining boutique investment qualities with an integrated, centralized operating and distribution platform[138](index=138&type=chunk) - The company offers a wide array of investment products through **12 autonomous Investment Franchises** and a Solutions Platform, managing **126 investment strategies**[139](index=139&type=chunk) - In April 2023, the company launched 'Victory Capital InVest', a new brand for its direct investor business, including an open architecture brokerage platform[140](index=140&type=chunk) [Assets Under Management](index=29&type=section&id=Assets%20Under%20Management) Total AUM increased to **$161.6 billion** at June 30, 2023, driven by **$5.5 billion** in market appreciation despite **$2.4 billion** in net outflows, with Solutions and Retail as largest segments AUM and Flow Summary (in millions) | Metric | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | :--- | | AUM at period end | $161,622 | $154,947 | $161,622 | $154,947 | | Average AUM | $157,372 | $165,703 | $157,595 | $171,283 | | Net flows | ($2,422) | ($683) | ($3,667) | $2,307 | AUM by Asset Class as of June 30, 2023 (in millions) | Asset Class | AUM | | :--- | :--- | | Solutions | $55,836 | | U.S. Mid Cap Equity | $30,007 | | Fixed Income | $26,098 | | U.S. Small Cap Equity | $15,664 | | Global / Non-U.S. Equity | $15,392 | | U.S. Large Cap Equity | $12,170 | | Alternative Investments | $3,301 | | Money Market & Short-Term | $3,152 | | **Total** | **$161,622** | [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Q2 2023 revenue decreased **5.5%** to **$204.2 million** due to lower AUM, with operating income impacted by a **$28.1 million** unfavorable change in contingent consideration and increased interest expense - Q2 2023 investment management fees decreased **5.2%** year-over-year to **$159.4 million** due to lower average AUM[171](index=171&type=chunk) - Personnel compensation for Q2 2023 decreased by **$2.6 million** year-over-year, driven by lower incentive and sales-based compensation[175](index=175&type=chunk) - The 'Change in value of consideration payable for acquisition of business' was an expense of **$1.5 million** in Q2 2023, a significant negative swing from a **$26.6 million** benefit in Q2 2022[170](index=170&type=chunk)[183](index=183&type=chunk) - Interest expense increased to **$14.9 million** in Q2 2023 from **$9.9 million** in Q2 2022 due to higher average interest rates on debt[188](index=188&type=chunk) [Supplemental Non-GAAP Financial Information](index=36&type=section&id=Supplemental%20Non-GAAP%20Financial%20Information) Non-GAAP measures show Q2 2023 Adjusted EBITDA at **$104.0 million** with a **50.9%** margin, and Adjusted Net Income at **$66.4 million**, providing a clearer view of operating performance Non-GAAP Reconciliation Summary (in thousands) | Metric | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | :--- | | Net Income (GAAP) | $56,671 | $79,205 | $105,944 | $150,478 | | Adjusted EBITDA | $104,015 | $106,189 | $203,167 | $220,564 | | Adjusted Net Income | $66,405 | $71,393 | $132,050 | $152,488 | - Adjusted EBITDA margin improved to **50.9%** in Q2 2023 from **49.2%** in Q2 2022[157](index=157&type=chunk)[158](index=158&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2023, the company had **$43.8 million** in cash and a **$100.0 million** undrawn credit facility, using **$132.0 million** in H1 2023 financing activities for share repurchases and dividends - As of June 30, 2023, the company had **$43.8 million** in cash and access to a **$100.0 million** undrawn revolving credit facility[201](index=201&type=chunk)[204](index=204&type=chunk) - In H1 2023, the company used **$79.9 million** to repurchase common stock and **$43.6 million** to pay dividends[218](index=218&type=chunk) - Contingent consideration for the USAA AMCO and WestEnd acquisitions totaled an estimated **$239.3 million** as of June 30, 2023[210](index=210&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's revenues are highly sensitive to market risk, with a **10%** AUM change impacting annualized revenue by **$84.2 million**, and exchange rate risk potentially affecting AUM by **$1.6 billion** and revenue by **$8.3 million** - A **10%** increase or decrease in AUM would cause an annualized revenue change of approximately **$84.2 million**, based on the Q2 2023 weighted-average fee rate of **52 basis points**[223](index=223&type=chunk) - A **10%** change in the U.S. dollar's value against other currencies would impact AUM by approximately **$1.6 billion**, causing an annualized revenue change of about **$8.3 million**[226](index=226&type=chunk) - Interest rate risk on floating-rate debt is managed through a swap that effectively fixes the rate on **$450 million** of term loan debt at **3.15%** through July 2026[227](index=227&type=chunk) [Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of June 30, 2023, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2023[229](index=229&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the second quarter of 2023[230](index=230&type=chunk) [PART II — OTHER INFORMATION](index=42&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any material legal proceedings - The Company is not currently a party to any material legal proceedings[232](index=232&type=chunk) [Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2022 - There have been no material changes to the risk factors in the Annual Report on Form 10-K for the year ended December 31, 2022[233](index=233&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) A new **$100.0 million** share repurchase program was approved in March 2023, with **1.4 million** shares repurchased for **$44.5 million** in Q2 2023, leaving **$51.9 million** available - A new **$100.0 million** share repurchase program was authorized in March 2023, effective through March 31, 2025[234](index=234&type=chunk) Issuer Purchases of Equity Securities (Q2 2023) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Approximate Dollar Value Remaining Under Program (in millions) | | :--- | :--- | :--- | :--- | | April 1-30, 2023 | — | $— | $95.8 | | May 1-31, 2023 | 685,001 | $31.38 | $74.4 | | June 1-30, 2023 | 694,708 | $33.11 | $51.9 | | **Total** | **1,379,709** | **$32.25** | **$51.9** | [Defaults Upon Senior Securities](index=42&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported - None[238](index=238&type=chunk) [Mine Safety Disclosures](index=43&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company's operations - Not applicable[239](index=239&type=chunk) [Other Information](index=43&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the fiscal quarter ended June 30, 2023 - None of the Company's directors or officers adopted, modified or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the fiscal quarter ended June 30, 2023[239](index=239&type=chunk) [Exhibits](index=43&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including CEO and CFO certifications under Sarbanes-Oxley Sections 302 and 906, and iXBRL interactive data files - Exhibits filed include certifications from the Principal Executive Officer and Principal Financial Officer under Sarbanes-Oxley Sections 302 and 906[241](index=241&type=chunk) - The filing includes financial statements and notes formatted in iXBRL (Inline eXtensible Business Reporting Language)[241](index=241&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission file number 001-38388 Victory Capital Holdings, Inc. Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 (Exact name of registrant as specified in its charter) (State or other jurisd ...

Victory Capital Holdings, Inc. (NASDAQ:VCTR) Q1 2023 Earnings Conference Call May 5, 2023 8:00 AM ET Company Participants Matthew Dennis - Chief of Staff and Director of Investor Relations David Brown - Chairman and Chief Executive Officer Michael Policarpo - President, Chief Financial Officer and Chief Administrative Officer Conference Call Participants Kenneth Lee - RBC Capital Markets Michael Brown - KBW Michael Cho - JPMorgan Operator Good morning, and welcome to the Victory Capital First Quarter 2023 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM to Commission file number: 001-38388 Victory Capital Holdings, Inc. (Exact name of registrant as specified in its charter) Delaware 32-0402956 (S ...

Financial Data and Key Metrics Changes - Operating income increased by 7% from $374 million in 2021 to $399 million in 2022 [12] - Full year adjusted EBITDA margin was 49.6% in 2022, exceeding the long-term guidance of 49% [12][15] - Adjusted net income was $1.05 per diluted share in Q4 and $4.58 per diluted share for the full year 2022 [13][24] - Total AUM increased by $5.7 billion or 4% in Q4 to $153 billion, driven by over $10 billion of positive market actions [22] Business Line Data and Key Metrics Changes - Gross long-term flows in 2022 were $33.3 billion, a 20% increase from $27.9 billion in 2021 [9] - Net long-term outflows were $2.5 billion for the year, representing only 1.4% of the beginning of year AUM [10] - WestEnd Advisors, Sycamore, Sophus, and RS Global each had positive net flows for 2022 [27] Market Data and Key Metrics Changes - The company experienced elevated net long-term outflows in Q4 due to clients selling assets for various reasons [11] - Approximately 80% of total AUM outperformed benchmarks for the three, five, and ten-year periods as of year-end [16] Company Strategy and Development Direction - The company continues to invest in hiring, technology, data, and marketing, which are beginning to yield returns [8] - The strategy includes maintaining a flexible balance sheet to pursue acquisitions while balancing buybacks and dividends [34][36] - The company is well-positioned to capture market share in fixed income as investors rotate back into this asset class [18] Management's Comments on Operating Environment and Future Outlook - Management expressed a positive outlook for 2023, noting improved net long-term flows compared to Q4 2022 [11] - The company remains patient and selective regarding M&A opportunities, focusing on finding suitable targets [68] - Management highlighted the importance of maintaining a balanced approach to capital allocation, including debt reduction and shareholder returns [36] Other Important Information - The company returned over $200 million to shareholders in 2022, significantly higher than the $62 million returned in 2021 [13] - A new independent director, Vice Admiral Mary Jackson, was added to the corporate board [21] Q&A Session Summary Question: Thoughts on share buyback process in 2023 - Management indicated that share buybacks will be opportunistic and depend on market conditions, evaluating it week by week [34] Question: Purpose of dividend hike - The dividend increase was aimed at rewarding existing shareholders rather than attracting a specific type of investor [35] Question: Position to capture fixed income net flows - Management noted strong investment performance and a diverse range of fixed income products, positioning the company well for potential inflows [39] Question: Key growth opportunities for net flows - Management identified WestEnd Advisors, Victory Shares ETF platform, and fixed income as key growth areas [42][45] Question: Stability of fee rate - The fee rate has remained stable, with expectations to maintain it around 52 basis points moving forward [47] Question: Impact of recent acquisitions on flows - All mentioned acquisitions (WestEnd, THB, NEC) contributed positively to net flows, with WestEnd showing particularly strong performance [70]