USAA’s investment management arm is reviewing 19 mutual funds complexes that invest in stocks and is considering transferring the $7 billion in equities the firm currently manages to outside managers, according to Reuters, citing USAA spokesman Tom Honeycutt. The review of those options is expected to be completed in the next couple of weeks, according to Honeycutt.
“We are in the process of reviewing our equity department to consider whether we should engage outside money managers with the intent to provide our investors with consistent, above average portfolio performance,” Honeycutt said, citing persistent stock market weakness, according to the report.
San Antonio-based USAA manages more than $60 billion in assets. Its investment management arm would lose a quarter of its nearly $27 billion in assets if management decides to shut down the equity department.
The move could have an impact on about 10% of USAA’s
investment management staff, should the equity management