Victory Capital today announced it has acquired the business of Compass Efficient Model Portfolios, LLC (“Compass EMP”). Compass EMP, which is based in Brentwood, TN, has developed a smart beta indexing approach that combines fundamental criteria with volatility weighting to seek to improve an investor’s ability to outperform traditional indexing strategies.
Victory Capital’s acquisition of Compass EMP, which was first announced in December 2014, is an extension of the firm’s multi-boutique business model in which autonomous investment franchises deliver client-centric solutions across a variety of asset classes. The franchises are supported by a best-in-class client servicing, distribution, operations and technology platform.
“Compass EMP is a leader and innovator in delivering rules-based broad market indexing strategies that seek to provide better risk-adjusted returns than traditional cap-weighted indexes,” said David Brown, Victory Capital’s chairman and chief executive officer. “The addition of Compass EMP to our platform will enable our clients to complement a portfolio of actively managed strategies with efficient indexing strategies available through mutual fund vehicles and ETFs.”
The Compass EMP investment team, led by firm co-founder and chief investment officer, Stephen Hammers, remains in place and continues to manage the investment strategies using the same process and approach.