Related-Party Transactions

6 Months Ended

Jun. 30, 2020

Related Party Transactions [Abstract]

Related-Party Transactions

NOTE 6.  Related-Party Transactions

The Company considers certain funds that it manages, including the Victory Funds, the USAA Funds, the VictoryShares and collective trust funds that it sponsors (the “Victory Collective Funds”), to be related parties as a result of our advisory relationship.

The Company receives investment management, administrative, distribution and compliance fees in accordance with contracts that VCM and VCS have with the Victory Funds and the USAA Funds and has invested a portion of its balance sheet cash in the USAA Treasury Money Market Fund and earns interest on the amount invested in this fund. We also receive investment management fees from the VictoryShares and Victory Collective Funds under VCM’s advisory contracts with these funds and administrative fees from the VictoryShares. In addition, we receive transfer agent fees in accordance with a contract that VCTA has with the USAA Funds.

The table below presents balances and transactions involving related parties included in the unaudited Condensed Consolidated Balance Sheets and unaudited Condensed Consolidated Statements of Operations.

• Included in cash and cash equivalents is cash held in the USAA Treasury Money Market Fund.

• Included in receivables (fund administration and distribution fees) are amounts due from the Victory Funds and USAA Funds for compliance services and amounts due from the USAA Funds for transfer agent services.

• Included in revenue (fund administration and distribution fees) are amounts earned for compliance services and transfer agent services.

• Realized and unrealized gains and losses and dividend income on investments in the Victory Funds classified as available-for-sale securities and investments in the Victory Funds and USAA Funds classified as trading securities and dividend income on investments in the USAA Treasury Money Market Fund are recorded in interest income and other income (expense) in the unaudited Condensed Consolidated Statements of Operations.

• Amounts due to the Victory Funds, USAA Funds and VictoryShares for waivers of investment management fees and reimbursements of fund operating expenses are included in accounts payable and accrued expenses in the unaudited Condensed Consolidated Balance Sheets and represent consideration payable to customers.

(in thousands)	June 30, 2020		December 31, 2019
Related party assets
Cash and cash equivalents	$	10,086	$	10,060
Receivables (investment management fees)		40,443		47,872
Receivables (fund administration and distribution fees)		15,822		19,313
Investments (available-for-sale securities, fair value)		738		771
Investments (trading securities, fair value)		17,464		17,914
Total	$	84,553	$	95,930
Related party liabilities
Accounts payable and accrued expenses (fund reimbursements)	$	4,648	$	4,316

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2020		2019		2020			2019
Related party revenue
Investment management fees	$	108,966	$	55,716	$	233,276		$	109,508
Fund administration and distribution fees		51,854		13,318		109,394			26,386
Total	$	160,820	$	69,034	$	342,670		$	135,894
Related party other income (expense)
Interest income and other income (expense)	$	2,702	$	455	$	(2,096	)	$	1,815