The consequences of Victory's brand consolidation translate into action for executives at the Cleveland, Ohio-based money manager. They will submit proposals to the board of directors for the merging of several funds at the end of this month.

"We're continuing to lower our expense ratios," said Rick Buoncore, chief executive officer, expanding on Victory's motivation to merge like funds. "Fund families have gotten bigger, so there's a need to pare back funds." Buoncore declined to specify merger candidates, citing that board members haven't yet voted on the proposals.

The strategy tracks an emerging industry trend: 188 funds have merged in the first quarter of this year, over 40 percent higher than the number of mergers in the first quarter of 2000.

Victory Capital manages approximately $75 billion in assets.

Links:

• Victory Sweeps Away Brand-Name Clutter
• How Many Fund Mergers in 2000?

 

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