UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-04852
Victory Portfolios
(Exact name of registrant as specified in charter)
4900 Tiedeman Road, 4th Floor, Brooklyn, Ohio | 44144 |
(Address of principal executive offices) | (Zip code) |
Citi Fund Services Ohio, Inc., 4400 Easton Commons, Suite 200, Columbus, OH 43219
(Name and address of agent for service)
Registrant’s telephone number, including area code: 800-539-3863
Date of fiscal year end: June 30
Date of reporting period: June 30, 2020
Item 1. Reports to Stockholders.
June 30, 2020
Annual Report
Victory Integrity Discovery Fund
Victory Integrity Mid-Cap Value Fund
Victory Integrity Small-Cap Value Fund
Victory Integrity Small/Mid-Cap Value Fund
Victory Munder Multi-Cap Fund
Victory S&P 500 Index Fund
Victory Munder Mid-Cap Core Growth Fund
Victory Munder Small Cap Growth Fund
Victory Trivalent Emerging Markets Small-Cap Fund
Victory Trivalent International Fund-Core Equity
Victory Trivalent International Small-Cap Fund
Victory INCORE Total Return Bond Fund
Beginning January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Victory Funds' shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Victory Funds or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on www.VictoryFunds.com, and you will be notified by mail each time a report is posted and provided with a website link to access the report. If you already elected to receive shareholder reports electronically, you will not be affected by this change, and you need not take any action.
You may elect to receive shareholder reports and other communications from the Victory Funds or your financial intermediary electronically sooner than January 1, 2021 by notifying your financial intermediary directly or, if you are a direct investor, by calling 800-539-3863 or by sending an e-mail request to TA.Processing@FISGlobal.com.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your reports. If you invest directly with the Victory Funds, you can call 800-539-3863 or send an e-mail request to TA.Processing@FISGlobal.com. Your election to receive reports in paper will apply to all Victory Funds you hold directly or through your financial intermediary.
www.vcm.com
News, Information And Education 24 Hours A Day, 7 Days A Week
The Victory Funds site gives fund shareholders, prospective shareholders, and investment professionals a convenient way to access fund information, get guidance, and track fund performance anywhere they can access the Internet. The site includes:
• Detailed performance records
• Daily share prices
• The latest fund news
• Investment resources to help you become a better investor
• A section dedicated to investment professionals
Whether you're a potential investor searching for the fund that matches your investment philosophy, a seasoned investor interested in planning tools, or an investment professional, www.vcm.com has what you seek. Visit us anytime. We're always open.
Victory Portfolios
Table of Contents
Shareholder Letter (unaudited) | 5 | ||||||
Fund Review and Commentary (unaudited) | 7 | ||||||
Financial Statements | |||||||
Victory Integrity Discovery Fund | |||||||
Schedule of Portfolio Investments | 41 | ||||||
Statements of Assets and Liabilities | 121 | ||||||
Statements of Operations | 125 | ||||||
Statements of Changes in Net Assets | 129-131 | ||||||
Financial Highlights | 142-145 | ||||||
Victory Integrity Mid-Cap Value Fund | |||||||
Schedule of Portfolio Investments | 45 | ||||||
Statements of Assets and Liabilities | 121 | ||||||
Statements of Operations | 125 | ||||||
Statements of Changes in Net Assets | 129-131 | ||||||
Financial Highlights | 146-147 | ||||||
Victory Integrity Small-Cap Value Fund | |||||||
Schedule of Portfolio Investments | 49 | ||||||
Statements of Assets and Liabilities | 121 | ||||||
Statements of Operations | 125 | ||||||
Statements of Changes in Net Assets | 129-131 | ||||||
Financial Highlights | 148-151 | ||||||
Victory Integrity Small/Mid-Cap Value Fund | |||||||
Schedule of Portfolio Investments | 54 | ||||||
Statements of Assets and Liabilities | 122 | ||||||
Statements of Operations | 126 | ||||||
Statements of Changes in Net Assets | 132-134 | ||||||
Financial Highlights | 152-153 | ||||||
Victory Munder Multi-Cap Fund | |||||||
Schedule of Portfolio Investments | 58 | ||||||
Statements of Assets and Liabilities | 122 | ||||||
Statements of Operations | 126 | ||||||
Statements of Changes in Net Assets | 132-134 | ||||||
Financial Highlights | 154-155 | ||||||
Victory S&P 500 Index Fund | |||||||
Schedule of Portfolio Investments | 61 | ||||||
Statements of Assets and Liabilities | 122 | ||||||
Statements of Operations | 126 | ||||||
Statements of Changes in Net Assets | 132-134 | ||||||
Financial Highlights | 156-157 | ||||||
Victory Munder Mid-Cap Core Growth Fund | |||||||
Schedule of Portfolio Investments | 73 | ||||||
Statements of Assets and Liabilities | 123 | ||||||
Statements of Operations | 127 | ||||||
Statements of Changes in Net Assets | 135-137 | ||||||
Financial Highlights | 158-159 |
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Table of Contents (continued)
Victory Munder Small Cap Growth Fund | |||||||
Schedule of Portfolio Investments | 76 | ||||||
Statements of Assets and Liabilities | 123 | ||||||
Statements of Operations | 127 | ||||||
Statements of Changes in Net Assets | 135-137 | ||||||
Financial Highlights | 160-161 | ||||||
Victory Trivalent Emerging Markets Small-Cap Fund | |||||||
Schedule of Portfolio Investments | 81 | ||||||
Statements of Assets and Liabilities | 123 | ||||||
Statements of Operations | 127 | ||||||
Statements of Changes in Net Assets | 135-137 | ||||||
Financial Highlights | 162-163 | ||||||
Victory Trivalent International Fund-Core Equity | |||||||
Schedule of Portfolio Investments | 90 | ||||||
Statements of Assets and Liabilities | 124 | ||||||
Statements of Operations | 128 | ||||||
Statements of Changes in Net Assets | 138-140 | ||||||
Financial Highlights | 164-167 | ||||||
Victory Trivalent International Small-Cap Fund | |||||||
Schedule of Portfolio Investments | 102 | ||||||
Statements of Assets and Liabilities | 124 | ||||||
Statements of Operations | 128 | ||||||
Statements of Changes in Net Assets | 138-140 | ||||||
Financial Highlights | 168-169 | ||||||
Victory INCORE Total Return Bond Fund | |||||||
Schedule of Portfolio Investments | 113 | ||||||
Statements of Assets and Liabilities | 124 | ||||||
Statements of Operations | 128 | ||||||
Statements of Changes in Net Assets | 138-140 | ||||||
Financial Highlights | 170-171 | ||||||
Notes to Financial Statements | 172 | ||||||
Report of Independent Registered Public Accounting Firm | 192 | ||||||
Supplemental Information (Unaudited) | |||||||
Trustee and Officer Information | 193 | ||||||
Proxy Voting and Portfolio Holdings Information | 196 | ||||||
Expense Examples | 196 | ||||||
Additional Federal Income Tax Information | 199 | ||||||
Liquidity Risk Management Program | 200 | ||||||
Privacy Policy (inside back cover) |
2
The Funds are distributed by Victory Capital Services, Inc. Victory Capital Management Inc. is the investment adviser to the Funds and receives fees from the Funds for performing services for the Funds.
This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus of the Victory Funds.
For additional information about any Victory Fund, including fees, expenses, and risks, view our prospectus online at www.vcm.com or call 800-539-3863. Read it carefully before you invest or
send money.
The information in this annual report is based on data obtained from recognized services and sources and is believed to be reliable. Any opinions, projections, or recommendations in this report are subject to change without notice and are not intended as individual investment advice. Past investment performance of the Funds, markets or securities mentioned herein should not be considered to be indicative of future results.
• NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
Call Victory at:
800-539-FUND (800-539-3863)
Visit our website at:
www.vcm.com
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4
Victory Funds Letter to Shareholders
Dear Shareholder,
What a difference a year makes. Not long ago, we were marveling at the longest-ever bull market in equities. Although the current market environment appears constructive and relatively calm (as of this writing), what has transpired over the past year has been nothing short of astounding.
In fact, the annual period ended June 30, 2020, has been the most unusual period for investors since the Global Financial Crisis or, perhaps, the Great Depression. We entered this year with mundane concerns of interest rates and global trade talks, but that all changed quickly in early 2020. The spread of COVID-19 throughout the United States was an unprecedented event that rendered virtually any economic forecast unreliable. In March, and seemingly overnight, the sentiment pendulum swung from risk-on to risk-off.
The global economy came to an all-stop and equities sold off sharply. Meanwhile, liquidity evaporated in many segments of the fixed-income market, especially higher-yielding credits and anything perceived to be higher risk, which caused credit spreads to widen and depressed prices.
Fortunately, the U.S. Federal Reserve (the "Fed") and other monetary authorities worldwide leapt into action — slashing interest rates, (re)starting quantitative easing and, in the case of the Fed, launching an array of programs to provide liquidity to stabilize fixed-income markets.
The U.S. government also stepped up to provide $2 trillion of fiscal stimulus in the form of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which aims help toward corporations, small businesses, and individuals that have been affected by the abrupt economic stoppage.
All those steps ended the market's freefall, spurred a significant rally in equities, and helped tighten credit spreads across much of the fixed-income universe. In fact, by June 30, 2020, sentiment was nothing less than bullish and the broad market indexes had largely recovered losses from the first quarter. Through all this turmoil and volatility, the S&P 500® Index managed to deliver an annual return of approximately 7.5% for the 12-month period ended June 30, 2020. Meanwhile, the yield on 10-year U.S. Treasuries declined 144 basis points, reflecting both the Fed intervention and the uncertainties, ending June 30 at approximately 0.66%.
Looking ahead, the economy and markets remain unpredictable. For equities, investors should expect continued bouts of elevated volatility, which will likely be driven by reports on the virus, a possible vaccine, and the economic data. On the whole, however, we believe the tenor of the market is much improved from the depths of the crisis even as earnings estimates remain vague at best.
Credit markets, too, remain unpredictable, though they have stabilized markedly. A wide range of outcomes are conceivable over the next year, but continued monetary intervention and fiscal stimulus, coupled with a regional approach to economic shutdowns, may well prevent credit spreads from returning to the elevated levels of March.
5
Regardless, whatever is in store for markets, the investment philosophies and resolve of Victory Capital's various independent investment franchises remain steadfast. We believe that our collective investment talent and their actively managed portfolios will be able to manage risks and excel in an environment that often creates short-term pricing dislocations that benefit astute investors.
On the following pages, you will find information relating to your Victory Funds investment. If you have any questions, we encourage you to contact your financial advisor. If you invest with us directly, you may call (800) 539-3863, or visit our website at www.vcm.com.
My colleagues and I sincerely appreciate the confidence you have placed in the Victory Funds, and we value the opportunity to help meet your investment goals.
Christopher K. Dyer, CFA
President,
Victory Funds
6
Victory Integrity Discovery Fund
What were the market conditions during the reporting period?
Equity markets rallied throughout 2019 and into the first month and a half of 2020 due to progress made on trade disputes, an accommodative U.S. Federal Reserve (the "Fed"), and strong earning seasons. Despite uncertainty around Brexit, geopolitical tensions, and concerns about the health of the global economy, U.S. equities outperformed. Equity markets sold off sharply in the last week of February and continued throughout the month of March as the unexpected spread of the novel coronavirus ("COVID-19") dominated market headlines. Sudden market shifts and sentiment swings based on virus news flow were common occurrences. Market volatility was further exacerbated by the collapse of oil prices as Russia and Saudi Arabia withdrew negotiations on oil output cooperation. Equity markets sold off sharply across all styles and market capitalizations. Equity markets bottomed near the end of the first quarter of 2020, rebounding sharply off the bottom which continued into the second quarter. Declining COVID-19 cases, hopes of a medical breakthrough, and massive liquidity injections by the Fed and world monetary authorities drove investors back to equities.
The top-performing sectors within the benchmark were Health Care, Consumer Staples, and Information Technology, while Energy, Communication Services, and Financials were the weakest-performing sectors. Micro-cap growth stocks outperformed micro-cap value stocks.
How did Victory Integrity Discovery Fund (the "Fund") perform during the reporting period?
The Fund seeks to provide capital appreciation. The Fund returned -23.78% (Class A Shares at net asset value) for the fiscal year ended June 30, 2020, underperforming the Russell Microcap® Value Index (the "Index"), which returned -14.93% during the period.
What strategies did you employ during the reporting period?
Stock selection in Health Care was the prominent detractor to relative Fund performance. Stock selection in Industrials and Energy was also a detractor to relative Fund performance. Security selection in Information Technology and Financials were positives. Sector weights were a negative on relative Fund performance relative to the Index due to an underweight position in Health Care, which significantly outperformed. From a style perspective, the Fund's holdings on average had lower volatility relative to the Index, and this was a headwind.
We have worked diligently to build a portfolio that should benefit from a reduction in anxiety over the virus and the economy. We have been adding small positions in companies where we see enticing relative valuations with above-average snap-back potential as the COVID-19 and economic clouds begin to clear. The number of securities held in the portfolio has expanded to try to capture this return while taking less company-specific risk. We believe our strategy of buying names with solid free cash flow characteristics, coupled with deeper
Portfolio Holdings
As a Percentage of Total Investments
7
Victory Integrity Discovery Fund (continued)
discounts and some controversy surrounding them, is the right one that will add alpha for our clients going forward. Our largest risk lies in second-wave fears and the resulting economic worries and implications. Our performance was very strong during the first two months of the second quarter of 2020; however, in the last few weeks of the quarter, second-wave COVID-19 cases increased, and we did lose some relative outperformance. This is certainly a concern, but we see it as performance delayed, not lost.
8
Victory Integrity Discovery Fund (continued)
Average Annual Total Return
Year Ended June 30, 2020
Class A | Class C | Class R | Class Y | ||||||||||||||||||||||||||||
INCEPTION DATE | 12/26/96 | 3/31/97 | 7/29/04 | 12/26/96 | |||||||||||||||||||||||||||
Net Asset Value | Maximum Offering Price | Net Asset Value | Contingent Deferred Charges | Net Asset Value | Net Asset Value | Russell Microcap® Value Index1 | |||||||||||||||||||||||||
One Year | �� | –23.78 | % | –28.16 | % | –24.42 | % | –25.15 | % | –24.10 | % | –23.64 | % | –14.93 | % | ||||||||||||||||
Three Year | –8.09 | % | –9.89 | % | –8.84 | % | –8.84 | % | –8.55 | % | –7.88 | % | –2.93 | % | |||||||||||||||||
Five Year | –1.28 | % | –2.44 | % | –2.06 | % | –2.06 | % | –1.77 | % | –1.05 | % | 2.19 | % | |||||||||||||||||
Ten Year | 9.12 | % | 8.47 | % | 8.27 | % | 8.27 | % | 8.70 | % | 9.38 | % | 8.69 | % | |||||||||||||||||
Since Inception | 9.41 | % | 9.14 | % | 8.63 | % | 8.63 | % | 4.84 | % | 9.68 | % | N/A | ||||||||||||||||||
Expense Ratios | |||||||||||||||||||||||||||||||
Gross | 1.55% | 2.34% | 2.41% | 1.30% | |||||||||||||||||||||||||||
With Applicable Waivers | 1.55% | 2.34% | 2.08% | 1.30% |
Past performance is not indicative of future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month's end, please visit www.vcm.com.
The above expense ratios are from the Fund's prospectus dated November 1, 2019, as supplemented May 1, 2020. Additional information pertaining to the Fund's expense ratios as of June 30, 2020 can be found in the financial highlights. The Adviser has contractually agreed to waive a portion of its management fee and/or reimburse certain expenses for Class C and Class R shares through October 31, 2020.
The maximum offering price (MOP) figures reflect a maximum sales charge of 5.75% for Class A Shares. NAV does not reflect sales charges.
The total return figures set forth above include all waivers of fees for various periods since inception. Without such fee waivers, the total returns would have been lower. Some fee waivers are voluntary and may be modified or terminated at any time.
Victory Integrity Discovery Fund — Growth of $10,000
1The Russell Microcap® Value Index is a capitalization–weighted index that measures the performance of the smallest 1,000 securities in the Russell 2000® Index, plus the next 1,000 smallest eligible securities by market cap. The Russell 2000® Index is a capitalization-weighted index that measures the performance of approximately 2,000 of the smallest companies in the Russell 3000® Index, an index representing approximately 98% of the investable U.S. equity market. This index does not include the effect of sales charges and is not representative of the Fund. It is not possible to invest directly in an index.
The graph reflects investment growth of a hypothetical $10,000 investment in Class A Shares of the Fund. The performance of other classes of the Fund's shares will be greater than or less than the line shown based on the differences in loads and fees paid by shareholders investing in the different classes. Past performance is no guarantee of future results.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
9
Victory Integrity Mid-Cap Value Fund
What were the market conditions during the reporting period?
Equity markets rallied throughout 2019 and into the first month and a half of 2020 due to progress made on trade disputes, an accommodative U.S. Federal Reserve (the "Fed"), and strong earning seasons. Despite uncertainty around Brexit, geopolitical tensions, and concerns about the health of the global economy, U.S. equities outperformed. Equity markets sold off sharply in the last week of February and continued throughout the month of March as the unexpected spread of the novel coronavirus ("COVID-19") dominated market headlines. Sudden market shifts and sentiment swings based on virus news flow were common occurrences. Market volatility was further exacerbated by the collapse of oil prices as Russia and Saudi Arabia withdrew negotiations on oil output cooperation. Equity markets sold off sharply across all styles and market capitalizations. Equity markets bottomed near the end of the first quarter of 2020, rebounding sharply off the bottom, which continued into the second quarter. Declining COVID-19 cases, hopes of a medical breakthrough, and massive liquidity injections by the Fed and world monetary authorities drove investors back to equities.
The top-performing sectors within the benchmark were Consumer Staples, Technology, and Health Care, while Energy and Financials were the weakest-performing sectors. Mid-cap growth stocks outperformed mid-cap value stocks.
How did Victory Integrity Mid-Cap Value Fund (the "Fund") perform during the reporting period?
The Fund seeks to provide capital appreciation. The Fund returned -13.90% (Class A Shares at net asset value) for the fiscal year ended June 30, 2020, underperforming the Russell Midcap® Value Index (the "Index"), which returned -11.81% for the period.
What strategies did you employ during the reporting period?
Stock selection in Communication Services was the main detractor that resulted in relative Fund underperformance. Stock selection in Consumer Discretionary, Utilities, Materials, Consumer Staples, and Energy also detracted from relative Fund performance. Security selection in Technology, Real Estate, and Health Care helped relative Fund performance. Sector weights were positive on relative Fund performance as our overweight to Technology and Health Care helped. The Fund's holdings on average had a smaller market capitalization than the Index, and this was a headwind.
We have worked diligently to build a portfolio that should benefit from a reduction in anxiety over the virus and the economy. We have been adding small positions in companies where we see enticing relative valuations with above-average snap-back potential as the COVID-19 and economic clouds begin to clear. The number of securities held in the portfolio has expanded to try to capture this return while taking less company-specific risk. We believe our strategy of buying names with solid free-cash flow characteristics, coupled with deeper discounts and some controversy surrounding them, is the right one that will add alpha for
Portfolio Holdings
As a Percentage of Total Investments
10
Victory Integrity Mid-Cap Value Fund (continued)
our clients going forward. Our largest risk lies in second-wave fears and the resulting economic worries and implications. Our performance was very strong during the first two months of the second quarter of 2020; however, in the last few weeks of the quarter, second-wave COVID-19 cases increased, and we did lose some relative outperformance. This is certainly a concern, but we see it as performance delayed, not lost.
11
Victory Integrity Mid-Cap Value Fund (continued)
Average Annual Total Return
Year Ended June 30, 2020
Class A | Class C | Class R6 | Class Y | ||||||||||||||||||||||||||||
INCEPTION DATE | 7/1/11 | 11/4/19 | 12/14/15 | 7/1/11 | |||||||||||||||||||||||||||
Net Asset Value | Maximum Offering Price | Net Asset Value | Contingent Deferred Charges | Net Asset Value | Net Asset Value | Russell Midcap® Value Index1 | |||||||||||||||||||||||||
One Year | –13.90 | % | –18.85 | % | N/A | N/A | –13.53 | % | –13.67 | % | –11.81 | % | |||||||||||||||||||
Three Year | –1.28 | % | –3.21 | % | N/A | N/A | –0.92 | % | –1.05 | % | –0.54 | % | |||||||||||||||||||
Five Year | 2.31 | % | 1.11 | % | N/A | N/A | N/A | 2.59 | % | 3.32 | % | ||||||||||||||||||||
Ten Year | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Since Inception | 6.94 | % | 6.24 | % | –17.55 | % | –18.37 | % | 4.85 | % | 7.22 | % | N/A | ||||||||||||||||||
Expense Ratios | |||||||||||||||||||||||||||||||
Gross | 1.51% | 2.49% | 0.94% | 1.17% | |||||||||||||||||||||||||||
With Applicable Waivers | 1.00% | 1.75% | 0.60% | 0.75% |
Past performance is not indicative of future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month's end, please visit www.vcm.com.
The above expense ratios are from the Fund's prospectus dated November 1, 2019, as supplemented May 1, 2020. Additional information pertaining to the Fund's expense ratios as of June 30, 2020 can be found in the financial highlights. The Adviser has contractually agreed to waive a portion of its management fee and/or reimburse certain expenses for each class of shares through October 31, 2020.
The maximum offering price (MOP) figures reflect a maximum sales charge of 5.75% for Class A Shares. NAV does not reflect sales charges.
The total return figures set forth above include all waivers of fees for various periods since inception. Without such fee waivers, the total returns would have been lower. Some fee waivers are voluntary and may be modified or terminated at any time.
Victory Integrity Mid-Cap Value Fund — Growth of $10,000
1The Russell Midcap® Value Index is an unmanaged index made up of medium and medium/small companies in the Russell 1000® Index chosen for their value orientation. This index does not include the effect of sales charges and is not representative of the Fund. It is not possible to invest directly in an index.
The graph reflects investment growth of a hypothetical $10,000 investment in Class A Shares of the Fund. The performance of other classes of the Fund's shares will be greater than or less than the line shown based on the differences in loads and fees paid by shareholders investing in the different classes. Past performance is no guarantee of future results.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
12
Victory Integrity Small-Cap Value Fund
What were the market conditions during the reporting period?
Equity markets rallied throughout 2019 and into the first month and a half of 2020 due to progress made on trade disputes, an accommodative U.S. Federal Reserve (the "Fed"), and strong earning seasons. Despite uncertainty around Brexit, geopolitical tensions, and concerns about the health of the global economy, U.S. equities outperformed. Equity markets sold off sharply in the last week of February and continued throughout the month of March as the unexpected spread of the novel coronavirus ("COVID-19") dominated market headlines. Sudden market shifts and sentiment swings based on virus news flow were common occurrences. Market volatility was further exacerbated by the collapse of oil prices as Russia and Saudi Arabia withdrew negotiations on oil output cooperation. Equity markets sold off sharply across all styles and market capitalizations. Equity markets bottomed near the end of the first quarter of 2020, rebounding sharply off the bottom, which continued into the second quarter. Declining COVID-19 cases, hopes of a medical breakthrough, and massive liquidity injections by the Fed and world monetary authorities drove investors back to equities.
The top-performing sectors within the benchmark were Technology, Consumer Staples, and Health Care, while Energy, Communication Services, and Financials were the weakest-performing sectors. Small-cap growth stocks outperformed small-cap value stocks.
How did Victory Integrity Small-Cap Value Fund (the "Fund") perform during the reporting period?
The Fund seeks to provide long-term capital growth. The Fund returned -24.33% (Class A Shares at net asset value) for the fiscal year ended June 30, 2020, underperforming the Russell 2000® Value Index (the "Index"), which returned -17.48% for the period.
What strategies did you employ during the reporting period?
Security selection in Health Care, Consumer Staples, Consumer Discretionary, Materials, Utilities, and Industrials were the main detractors to relative Fund performance, while stock selection in Technology was the largest positive. Sector weights were a positive on the Fund's performance relative to the Index largely due to our overweight in Technology. From a style perspective, the Fund's holdings on average had higher liquidity and higher volatility relative to the Index, and both were tailwinds.
We have worked diligently to build a portfolio that should benefit from a reduction in anxiety over the virus and the economy. We have been adding small positions in companies where we see enticing relative valuations with above-average snap-back potential as the COVID-19 and economic clouds begin to clear. The number of securities held in the portfolio has expanded to try to capture this return while taking less company-specific risk. We believe our strategy of buying names with solid free cash flow characteristics, coupled with deeper discounts and some controversy surrounding them, is the right one that will add alpha for our clients going forward. Our largest risk lies in second-wave fears and the resulting
Portfolio Holdings
As a Percentage of Total Investments
13
Victory Integrity Small-Cap Value Fund (continued)
economic worries and implications. Our performance was very strong during the first two months of the second quarter of 2020; however, in the last few weeks of the quarter, second-wave COVID-19 cases increased, and we did lose some relative outperformance. This is certainly a concern, but we see it as performance delayed, not lost.
14
Victory Integrity Small-Cap Value Fund (continued)
Average Annual Total Return
Year Ended June 30, 2020
Class A | Class C | Class R | Class R6 | Class Y | |||||||||||||||||||||||||||||||
INCEPTION DATE | 3/30/04 | 7/7/05 | 7/7/05 | 6/1/12 | 7/7/05 | ||||||||||||||||||||||||||||||
Net Asset Value | Maximum Offering Price | Net Asset Value | Contingent Deferred Charges | Net Asset Value | Net Asset Value | Net Asset Value | Russell 2000® Value Index1 | ||||||||||||||||||||||||||||
One Year | –24.33 | % | –28.69 | % | –24.91 | % | –25.66 | % | –24.54 | % | –23.95 | % | –24.04 | % | –17.48 | % | |||||||||||||||||||
Three Year | –7.53 | % | –9.34 | % | –8.16 | % | –8.16 | % | –7.76 | % | –7.04 | % | –7.18 | % | –4.35 | % | |||||||||||||||||||
Five Year | –2.00 | % | –3.16 | % | –2.68 | % | –2.68 | % | –2.31 | % | –1.49 | % | –1.65 | % | 1.26 | % | |||||||||||||||||||
Ten Year | 6.96 | % | 6.32 | % | 6.22 | % | 6.22 | % | 6.71 | % | N/A | 7.30 | % | 7.82 | % | ||||||||||||||||||||
Since Inception | 5.70 | % | 5.32 | % | 4.35 | % | 4.35 | % | 4.84 | % | 6.66 | % | 5.40 | % | N/A | ||||||||||||||||||||
Expense Ratios | |||||||||||||||||||||||||||||||||||
Gross | 1.58% | 2.16% | 1.99% | 0.96% | 1.12% | ||||||||||||||||||||||||||||||
With Applicable Waivers | 1.50% | 2.16% | 1.75% | 0.96% | 1.12% |
Past performance is not indicative of future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month's end, please visit www.vcm.com.
The above expense ratios are from the Fund's prospectus dated November 1, 2019, as supplemented May 1, 2020. Additional information pertaining to the Fund's expense ratios as of June 30, 2020 can be found in the financial highlights. The Adviser has contractually agreed to waive a portion of its management fee and/or reimburse certain expenses for Class A and Class R shares through October 31, 2020.
The maximum offering price (MOP) figures reflect a maximum sales charge of 5.75% for Class A Shares. NAV does not reflect sales charges.
The total return figures set forth above include all waivers of fees for various periods since inception. Without such fee waivers, the total returns would have been lower. Some fee waivers are voluntary and may be modified or terminated at any time.
Victory Integrity Small-Cap Value Fund — Growth of $10,000
1The Russell 2000® Value Index is an unmanaged index that measures the performance of those Russell 2000® companies with lower price-to-book ratios and lower forecasted growth values. This index does not include the effect of sales charges and is not representative of the Fund. It is not possible to invest directly in an index.
The graph reflects investment growth of a hypothetical $10,000 investment in Class A Shares of the Fund. The performance of other classes of the Fund's shares will be greater than or less than the line shown based on the differences in loads and fees paid by shareholders investing in the different classes. Past performance is no guarantee of future results.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
15
Victory Integrity Small/Mid-Cap Value Fund
What were the market conditions during the reporting period?
Equity markets rallied throughout 2019 and into the first month and a half of 2020 due to progress made on trade disputes, an accommodative U.S. Federal Reserve (the "Fed"), and strong earning seasons. Despite uncertainty around Brexit, geopolitical tensions, and concerns about the health of the global economy, U.S. equities outperformed. Equity markets sold off sharply in the last week of February and continued throughout the month of March as the unexpected spread of the novel coronavirus ("COVID-19") dominated market headlines. Sudden market shifts and sentiment swings based on virus news flow were common occurrences. Market volatility was further exacerbated by the collapse of oil prices as Russia and Saudi Arabia withdrew negotiations on oil output cooperation. Equity markets sold off sharply across all styles and market capitalizations. Equity markets bottomed near the end of the first quarter of 2020, rebounding sharply off the bottom which continued into the second quarter. Declining COVID-19 cases, hopes of a medical breakthrough, and massive liquidity injections by the Fed and world monetary authorities drove investors back to equities.
The top-performing sectors within the benchmark were Health Care and Technology, while Energy and Financials were the weakest-performing sectors. Small/mid-cap growth stocks outperformed small/mid-cap value stocks.
How did Victory Integrity Small/Mid-Cap Value Fund (the "Fund") perform during the reporting period?
The Fund seeks to provide capital appreciation. The Fund returned -18.97% (Class A Shares at net asset value) for the fiscal year ended June 30, 2020, underperforming the Russell 2500® Value Index (the "Index"), which returned -15.50% for the period.
What strategies did you employ during the reporting period?
Stock selection in Materials, Consumer Discretionary, Communication Services, Utilities, and Health Care led to relative Fund underperformance, while security selection in Technology and Real Estate helped relative Fund performance. Sector weights were muted. The Fund's holdings on average had lower dividend yield to the Index, and this was a tailwind.
We have worked diligently to build a portfolio that should benefit from a reduction in anxiety over the virus and the economy. We have been adding small positions in companies where we see enticing relative valuations with above-average snap-back potential as the COVID-19 and economic clouds begin to clear. The number of securities held in the portfolio has expanded to try to capture this return while taking less company-specific risk. We believe our strategy of buying names with solid free cash flow characteristics, coupled with deeper discounts and some controversy surrounding them, is the right one that will add alpha for our clients going forward. Our largest risk lies in second-wave fears and the resulting economic worries and implications. Our performance was very strong during the first two months of the second quarter of 2020; however, in the last few weeks of the quarter, second-wave COVID-19 cases increased, and we did lose some relative outperformance. This is certainly a concern, but we see it as performance delayed, not lost.
Portfolio Holdings
As a Percentage of Total Investments
16
Victory Integrity Small/Mid-Cap Value Fund (continued)
Average Annual Total Return
Year Ended June 30, 2020
Class A | Class R6 | Class Y | |||||||||||||||||||||
INCEPTION DATE | 7/1/11 | 3/3/15 | 7/1/11 | ||||||||||||||||||||
Net Asset Value | Maximum Offering Price | Net Asset Value | Net Asset Value | Russell 2500® Value Index1 | |||||||||||||||||||
One Year | –18.97 | % | –23.63 | % | –18.70 | % | –18.73 | % | –15.50 | % | |||||||||||||
Three Year | –3.67 | % | –5.56 | % | –3.37 | % | –3.41 | % | –2.60 | % | |||||||||||||
Five Year | 0.41 | % | –0.77 | % | 0.72 | % | 0.68 | % | 1.85 | % | |||||||||||||
Ten Year | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||
Since Inception | 5.02 | % | 4.34 | % | 0.36 | % | 5.29 | % | N/A | ||||||||||||||
Expense Ratios | |||||||||||||||||||||||
Gross | 1.71% | 0.96% | 1.03% | ||||||||||||||||||||
With Applicable Waivers | 1.13% | 0.83% | 0.88% |
Past performance is not indicative of future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month's end, please visit www.vcm.com.
The above expense ratios are from the Fund's prospectus dated November 1, 2019, as supplemented May 1, 2020. Additional information pertaining to the Fund's expense ratios as of June 30, 2020 can be found in the financial highlights. The Adviser has contractually agreed to waive a portion of its management fee and/or reimburse certain expenses for each class of shares through October 31, 2020.
The maximum offering price (MOP) figures reflect a maximum sales charge of 5.75% for Class A Shares. NAV does not reflect sales charges.
The total return figures set forth above include all waivers of fees for various periods since inception. Without such fee waivers, the total returns would have been lower. Some fee waivers are voluntary and may be modified or terminated at any time.
Victory Integrity Small/Mid-Cap Value Fund — Growth of $10,000
1The Russell 2500® Value Index measures the performance of those Russell 2500® companies (approximately 2,500 of the smallest securities in the Russell 3000® Index, an index representing approximately 98% of the investable U.S. equity market) with lower price-to-book ratios and lower forecasted growth values. This index does not include the effect of sales charges and is not representative of the Fund. It is not possible to invest directly in an index.
The graph reflects investment growth of a hypothetical $10,000 investment in Class A Shares of the Fund. The performance of other classes of the Fund's shares will be greater than or less than the line shown based on the differences in loads and fees paid by shareholders investing in the different classes. Past performance is no guarantee of future results.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
17
Victory Munder Multi-Cap Fund
What were the market conditions during the reporting period?
It's been a volatile trailing 12 months for equities, with the Russell 3000® Index (the "Index") reaching new all-time highs in late February 2020 on the back of a U.S./China trade deal before abruptly rolling over as the health and economic implications of the novel coronavirus ("COVID-19") pandemic began to crystalize. The magnitude and swiftness of the selloff was astonishing, with markets down approximately 35% peak-to-trough in roughly a month, with many stocks and industries hit much harder.
However, the market rally that began in mid-March and continued through quarter end was equally impressive. Unprecedented economic challenges were met by unprecedented fiscal and monetary stimulus. This both increased optimism around an economic recovery, and infused the market with much needed liquidity, driving a rebound that was nearly as large as the decline.
All in, the Index still managed a 6.53% total return over the entire one-year period, though this was entirely driven by large-cap growth stocks. Large-cap names possess the necessary flexibility, brand awareness, scale, and balance sheet strength to both endure and invest through theses turbulent times, suggesting improved competitive positioning both during and after the pandemic.
Growth stocks, on the other hand, rely more on product adoption and market share gains than overall economic growth, and fundamentals have proven more resilient. In addition, powerful secular drivers that underpin many of these names, are expected to accelerate post-COVID (e.g., cloud computing and collaboration software and services). Finally, we believe lower interest rates benefit growth stocks disproportionately by reducing the discount rate applied to future profits, as these stocks inherently derive a larger portion of their intrinsic or net present value from future/expected earnings.
How did Victory Munder Multi-Cap Fund (the "Fund") perform during the reporting period?
The Fund seeks to provide long-term capital appreciation. The Fund returned 1.53% (Class A Shares at net asset value) for the fiscal year ended June 30, 2020, underperforming the Index, which returned 6.53% during the same period.
What strategies did you employ during the reporting period?
The Fund looks to invest in stocks with market capitalizations of $1 billion and above that we believe are high quality with the potential for above-average earnings growth, as well as current earnings momentum.
Using this framework, the Fund has generated the strongest returns within the Technology and Health Care sectors over the trailing 12 months, while Materials and Energy have been the most challenged.
Portfolio Holdings
As a Percentage of Total Investments
18
Victory Munder Multi-Cap Fund (continued)
In Technology, our large-cap and cloud holdings drove performance, with both expected to be more resilient or even benefit during the pandemic. Apple Inc. was our strongest performer, benefiting from its fortress balance sheet, attractive growth/value profile, and potential for accelerating business momentum as we enter a new 5G handset super-cycle.
In Health Care, our biotech names led performance, with our best performer being Regeneron Pharmaceuticals, Inc. The company's COVID-19 treatment, an antibody cocktail called REGN-COV2, is moving quickly through clinical trials and represents a potential meaningful revenue driver for the company.
With regards to Materials and Energy, both sectors have experienced massive negative demand shocks due to the pandemic and equity prices have sold off in response.
19
Victory Munder Multi-Cap Fund (continued)
Average Annual Total Return
Year Ended June 30, 2020
Class A | Class C | Class Y | |||||||||||||||||||||||||||||
INCEPTION DATE | 8/19/96 | 11/3/98 | 6/1/98 | ||||||||||||||||||||||||||||
Net Asset Value | Maximum Offering Price | Net Asset Value | Contingent Deferred Charges | Net Asset Value | S&P 500® Index1 | Russell 3000® Growth Index2 | |||||||||||||||||||||||||
One Year | 1.53 | % | –4.30 | % | 0.69 | % | –0.28 | % | 1.92 | % | 7.51 | % | 6.53 | % | |||||||||||||||||
Three Year | 5.79 | % | 3.72 | % | 5.00 | % | 5.00 | % | 6.18 | % | 10.73 | % | 10.04 | % | |||||||||||||||||
Five Year | 5.94 | % | 4.69 | % | 5.11 | % | 5.11 | % | 6.34 | % | 10.73 | % | 10.03 | % | |||||||||||||||||
Ten Year | 11.24 | % | 10.58 | % | 10.38 | % | 10.38 | % | 11.60 | % | 13.99 | % | 13.72 | % | |||||||||||||||||
Since Inception | 8.91 | % | 8.64 | % | 5.00 | % | 5.00 | % | 6.53 | % | N/A | N/A | |||||||||||||||||||
Expense Ratios | |||||||||||||||||||||||||||||||
Gross | 1.36% | 2.07% | 1.00% | ||||||||||||||||||||||||||||
With Applicable Waivers | 1.36% | 2.07% | 1.00% |
Past performance is not indicative of future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month's end, please visit www.vcm.com.
The above expense ratios are from the Fund's prospectus dated November 1, 2019, as supplemented May 1, 2020. Additional information pertaining to the Fund's expense ratios as of June 30, 2020 can be found in the financial highlights. The Adviser has contractually agreed to waive a portion of its management fee and/or reimburse certain expenses for Class C shares through October 31, 2020.
The maximum offering price (MOP) figures reflect a maximum sales charge of 5.75% for Class A Shares. NAV does not reflect sales charges.
The total return figures set forth above include all waivers of fees for various periods since inception. Without such fee waivers, the total returns would have been lower. Some fee waivers are voluntary and may be modified or terminated at any time.
Victory Munder Multi-Cap Fund — Growth of $10,000
1The S&P 500® Index, an unmanaged index comprised of 500 domestically traded common stocks, is weighted according to the market value of each common stock in the index, and includes reinvestment of dividends. This index does not include the effect of sales charges and is not representative of the Fund. It is not possible to invest directly in an index.
2The Russell 3000® Growth Index is an unmanaged index that measures the performance of the 3,000 largest U.S.-traded stocks, in which the underlying companies are all incorporated in the United States. This index does not include the effect of sales charges and is not representative of the Fund. It is not possible to invest directly in an index.
The graph reflects investment growth of a hypothetical $10,000 investment in Class A Shares of the Fund. The performance of other classes of the Fund's shares will be greater than or less than the line shown based on the differences in loads and fees paid by shareholders investing in the different classes. Past performance is no guarantee of future results.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
20
Victory S&P 500 Index Fund
Investment Considerations
Equity Securities ("stocks") are more volatile and carry more risk than other forms of investments in high-grade fixed-income securities. The net asset value per share of Victory S&P 500 Index Fund (the "Fund") will fluctuate as the value of the securities in the portfolio changes. The securities of foreign companies acquired by the Fund tend to experience more volatility than their domestic counterparts in part because of higher political and economic risks, lack of reliable information, fluctuations in currency exchange rates and the risks that a foreign government may take over assets, restrict the ability to exchange currency, or restrict the delivery of securities.
Commentary
The Fund seeks to provide performance and income that is comparable to the performance of the S&P 500® Index (the "Index") before fees and expenses.
The Fund returned 6.96% (Class A Shares at net asset value) for the fiscal year ended June 30, 2020, underperforming the Index, which returned 7.51%. The difference in performance of the Fund and the Index was primarily due to the Fund's fees and expenses. The Index is not an investable product; therefore, fees and expenses do not apply.
Over the reporting period, much of the performance was driven by the largest market cap names within the Index. The well-known FAANG+M stocks, comprised of Facebook, Apple, Amazon, Netflix, Google, and Microsoft, combined to make up over 22% of the Index and contributed a positive 8.31% to the Fund's return.
From a sector perspective, Information Technology and Health Care were the primary contributors to the Fund's relative performance, while Financial and Energy were the primary detractors.
Portfolio Holdings
As a Percentage of Total Investments
21
Victory S&P 500 Index Fund (continued)
Average Annual Total Return
Year Ended June 30, 2020
Class A | Class R | Class Y | |||||||||||||||||||||
INCEPTION DATE | 12/9/92 | 7/29/04 | 12/1/91 | ||||||||||||||||||||
Net Asset Value | Maximum Offering Price | Net Asset Value | Net Asset Value | S&P 500® Index1 | |||||||||||||||||||
One Year | 6.96 | % | 4.29 | % | 6.57 | % | 7.07 | % | 7.51 | % | |||||||||||||
Three Year | 10.13 | % | 9.20 | % | 9.69 | % | 10.28 | % | 10.73 | % | |||||||||||||
Five Year | 10.12 | % | 9.56 | % | 9.66 | % | 10.30 | % | 10.73 | % | |||||||||||||
Ten Year | 13.29 | % | 13.00 | % | 12.85 | % | 13.47 | % | 13.99 | % | |||||||||||||
Since Inception | 8.93 | % | 8.83 | % | 7.92 | % | 9.44 | % | N/A | ||||||||||||||
Expense Ratios | |||||||||||||||||||||||
Gross | 0.53% | 0.96% | 0.43% | ||||||||||||||||||||
With Applicable Waivers | 0.53% | 0.96% | 0.43% |
Past performance is not indicative of future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month's end, please visit www.vcm.com.
The above expense ratios are from the Fund's prospectus dated November 1, 2019, as supplemented July 20, 2020. Additional information pertaining to the Fund's expense ratios as of June 30, 2020 can be found in the financial highlights.
The maximum offering price (MOP) figures reflect a maximum sales charge of 2.50% for Class A Shares. NAV does not reflect sales charges.
The total return figures set forth above include all waivers of fees for various periods since inception. Without such fee waivers, the total returns would have been lower. Some fee waivers are voluntary and may be modified or terminated at any time.
Victory S&P 500 Index Fund — Growth of $10,000
1The S&P 500® Index, an unmanaged index comprised of 500 domestically traded common stocks, is weighted according to the market value of each common stock in the index, and includes reinvestment of dividends. This index does not include the effect of sales charges and is not representative of the Fund. It is not possible to invest directly in an index.
The graph reflects investment growth of a hypothetical $10,000 investment in Class A Shares of the Fund. The performance of other classes of the Fund's shares will be greater than or less than the line shown based on the differences in loads and fees paid by shareholders investing in the different classes. Past performance is no guarantee of future results.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
22
Victory Munder Mid-Cap Core Growth Fund
What were the market conditions during the reporting period?
It's been a volatile trailing 12 months for equities, with the Russell 3000® Index reaching new all-time highs in late February 2020 on the back of a U.S./China trade deal before abruptly rolling over as the health and economic implications of the novel coronavirus ("COVID-19") pandemic began to crystalize. The magnitude and swiftness of the selloff was astonishing, with markets down approximately 35% peak-to-trough in roughly a month, with many stocks and industries hit much harder.
However, the market rally that began in mid-March and continued through quarter end was equally impressive. Unprecedented economic challenges were met by unprecedented fiscal and monetary stimulus. This both increased optimism around an economic recovery, and infused the market with much needed liquidity, driving a rebound that was nearly as large as the decline.
All in, the Russell 3000® Index still managed a 6.53% total return over the entire one-year period, though this was entirely driven by large-cap and growth stocks. Large-cap names possess the necessary flexibility, brand awareness, scale, and balance sheet strength to both endure and invest through theses turbulent times, suggesting improved competitive positioning both during and after the pandemic.
Growth stocks, on the other hand, rely more on product adoption and market share gains than overall economic growth, and fundamentals have proven more resilient. In addition, powerful secular drivers that underpin many of these names, are expected to accelerate post-COVID (e.g., cloud computing and collaboration software and services). Finally, we believe lower interest rates benefit growth stocks disproportionately by reducing the discount rate applied to future profits, as these stocks inherently derive a larger portion of their intrinsic or net present value from future/expected earnings.
How did Victory Munder Mid-Cap Core Growth Fund (the "Fund") perform during the reporting period?
The Fund seeks to provide long-term capital appreciation. The Fund returned -3.04% (Class A Shares at net asset value) for the fiscal year ended June 30, 2020, underperforming the Russell Midcap® Index, which returned -2.24% for the period.
What strategies did you employ during the reporting period?
The Fund looks to invest in mid-cap stocks that have superior growth prospects, strong profitability, below-average debt levels, and attractive valuations relative to the market and the company's growth rate.
Using this framework, the Fund generated the strongest returns within the Real Estate and Technology sectors over the trailing 12 months, while Energy and Communication Services have been the most challenged.
Portfolio Holdings
As a Percentage of Total Investments
23
Victory Munder Mid-Cap Core Growth Fund (continued)
In Real Estate, our cell tower and datacenter positions drove performance, as these property types offer secular growth and are expected to be more resilient or even benefit from the current social distancing policies (more work-from-home, cloud adoption).
In Technology, our software-as-a-service names saw the same benefit, while our position in Advanced Micro Devices, Inc. ("AMD"), a global semiconductor company, was also a top performing stock. With regards to AMD, the company continues to close the technological/market share/financial margin gap to peers Intel Corporation and Nvidia Corporation.
With regards to Energy, the pandemic induced a massive negative demand shock for the underlying commodities, which collapsed both commodity and equity prices within the sector. In Communication Services, our position in Live Nation Entertainment, Inc., the largest live entertainment firm in the world whose operations include artist management, show promotion, venue operation, and primary/secondary ticket sales, drove performance. While social distancing policies are currently disrupting business, we believe this is temporary in nature and expect a rebound in 2021 as consumers continue to prioritize experiences within their spending budgets.
24
Victory Munder Mid-Cap Core Growth Fund (continued)
Average Annual Total Return
Year Ended June 30, 2020
Class A | Class C | Class R | Class R6 | Class Y | |||||||||||||||||||||||||||||||||||
INCEPTION DATE | 6/30/00 | 7/14/00 | 7/29/04 | 6/1/12 | 6/24/98 | ||||||||||||||||||||||||||||||||||
Net Asset Value | Maximum Offering Price | Net Asset Value | Contingent Deferred Charges | Net Asset Value | Net Asset Value | Net Asset Value | Russell Midcap® Index1 | Russell Midcap® Growth Index2 | |||||||||||||||||||||||||||||||
One Year | –3.04 | % | –8.61 | % | –3.82 | % | –4.13 | % | –3.28 | % | –2.60 | % | –2.76 | % | –2.24 | % | 11.91 | % | |||||||||||||||||||||
Three Year | 4.22 | % | 2.19 | % | 3.47 | % | 3.47 | % | 3.94 | % | 4.66 | % | 4.51 | % | 5.79 | % | 14.76 | % | |||||||||||||||||||||
Five Year | 4.08 | % | 2.85 | % | 3.35 | % | 3.35 | % | 3.80 | % | 4.53 | % | 4.36 | % | 6.76 | % | 11.60 | % | |||||||||||||||||||||
Ten Year | 10.57 | % | 9.92 | % | 9.78 | % | 9.78 | % | 10.28 | % | N/A | 10.86 | % | 12.35 | % | 15.09 | % | ||||||||||||||||||||||
Since Inception | 7.69 | % | 7.37 | % | 6.62 | % | 6.62 | % | 8.01 | % | 10.26 | % | 9.47 | % | N/A | N/A | |||||||||||||||||||||||
Expense Ratios | |||||||||||||||||||||||||||||||||||||||
Gross | 1.29% | 1.95% | 1.70% | 0.88% | 1.03% | ||||||||||||||||||||||||||||||||||
With Applicable Waivers | 1.29% | 1.95% | 1.58% | 0.88% | 1.03% |
Past performance is not indicative of future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month's end, please visit www.vcm.com.
The above expense ratios are from the Fund's prospectus dated November 1, 2019, as supplemented May 1, 2020. Additional information pertaining to the Fund's expense ratios as of June 30, 2020 can be found in the financial highlights. The Adviser has contractually agreed to waive a portion of its management fee and/or reimburse certain expenses for Class A and Class R shares through October 31, 2020.
The maximum offering price (MOP) figures reflect a maximum sales charge of 5.75% for Class A Shares. NAV does not reflect sales charges.
The total return figures set forth above include all waivers of fees for various periods since inception. Without such fee waivers, the total returns would have been lower. Some fee waivers are voluntary and may be modified or terminated at any time.
Victory Munder Mid-Cap Core Growth Fund — Growth of $10,000
1The Russell Midcap® Index is an unmanaged index measuring the performance of medium capitalization domestically traded common stocks. This index does not include the effect of sales charges and is not representative of the Fund. It is not possible to invest directly in an index.
2The Russell Midcap® Growth Index is an unmanaged index made up of medium and medium/small companies in the Russell 1000® Index chosen for their growth orientation. This Index does not include the effect of expenses, is not representative of any specific fund or product and cannot be invested in directly.
The graph reflects investment growth of a hypothetical $10,000 investment in Class A Shares of the Fund. The performance of other classes of the Fund's shares will be greater than or less than the line shown based on the differences in loads and fees paid by shareholders investing in the different classes. Past performance is no guarantee of future results.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
25
Victory Munder Small Cap Growth Fund
What were the market conditions during the reporting period?
It's been a volatile trailing 12 months for equities, with the Russell 3000® Index reaching new all-time highs in late February 2020 on the back of a U.S./China trade deal before abruptly rolling over as the health and economic implications of the novel coronavirus ("COVID-19") pandemic began to crystalize. The magnitude and swiftness of the selloff was astonishing, with markets down approximately 35% peak-to-trough in roughly a month, with many stocks and industries hit much harder.
However, the market rally that began in mid-March and continued through quarter end was equally impressive. Unprecedented economic challenges were met by unprecedented fiscal and monetary stimulus. This both increased optimism around an economic recovery, and infused the market with much needed liquidity, driving a rebound that was nearly as large as the decline.
All in, the Russell 3000® Index still managed a 6.53% total return over the entire one-year period, though this was entirely driven by large-cap growth stocks. Large-cap names possess the necessary flexibility, brand awareness, scale, and balance sheet strength to both endure and invest through theses turbulent times, suggesting improved competitive positioning both during and after the pandemic.
Growth stocks, on the other hand, rely more on product adoption and market share gains than overall economic growth, and fundamentals have proven more resilient. In addition, powerful secular drivers that underpin many of these names, are expected to accelerate post-COVID (e.g., cloud computing and collaboration software and services). Finally, we believe lower interest rates benefit growth stocks disproportionately by reducing the discount rate applied to future profits, as these stocks inherently derive a larger portion of their intrinsic or net present value from future/expected earnings.
How did Victory Munder Small Cap Growth Fund (the "Fund") perform during the reporting period?
The Fund seeks to provide long-term capital appreciation. The Fund returned 13.64% (Class A Shares at net asset value) for the fiscal year ended June 30, 2020, outperforming the Russell 2000® Growth Index, which returned 3.48% during the period.
What strategies did you employ during the reporting period?
The Fund looks to invest in small-cap stocks that have superior growth prospects, strong profitability, sustainable competitive advantages, and reasonable valuations.
Using this framework, the Fund has generated the strongest returns within the Technology and Health Care sectors over the trailing 12 months, while Energy has been the most challenged.
Portfolio Holdings
As a Percentage of Total Investments
26
Victory Munder Small Cap Growth Fund (continued)
In Technology, our software-as-a-service holdings drove performance, as they are expected to be more resilient or even benefit during the pandemic. DocuSign, Inc., the largest and most recognized eSignature company in the world, was our top performer, up nearly 197% for our holding period. Digital signatures offer material advantages over traditional physical processes, including faster turnaround, workflow efficiency, increased security, and reduced costs. Despite accelerating adoption during the pandemic, we exited our position after the stock's remarkable run as we found more compelling opportunities.
In Health Care, our biotech names led performance with strength centered on those companies targeting vaccines/treatments for COVID-19. Our two top performers, Novavax, Inc. and Dynavax Technologies Corporation, have both become plays on a COVID-19 vaccine. The outcome of clinical trials remains uncertain, but the revenue opportunity is material and the data generated to-date is encouraging. Furthermore, we believe durability of sales could surprise to the upside if herd immunity becomes unfeasible, as some pundits are suggesting.
With regards to Energy, the pandemic induced a massive negative demand shock for the underlying commodities, which collapsed both commodity and equity prices within the sector.
27
Victory Munder Small Cap Growth Fund (continued)
Average Annual Total Return
Year Ended June 30, 2020
Class A | Class I | Class Y | |||||||||||||||||||||
INCEPTION DATE | 4/30/15 | 4/30/15 | 4/30/15 | ||||||||||||||||||||
Net Asset Value | Maximum Offering Price | Net Asset Value | Net Asset Value | Russell 2000® Growth Index1 | |||||||||||||||||||
One Year | 13.64 | % | 7.08 | % | 13.85 | % | 13.74 | % | 3.48 | % | |||||||||||||
Three Year | 15.98 | % | 13.71 | % | 16.25 | % | 15.99 | % | 7.86 | % | |||||||||||||
Five Year | 10.67 | % | 9.36 | % | 10.94 | % | 10.73 | % | 6.86 | % | |||||||||||||
Ten Year | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||
Since Inception | 11.29 | % | 10.02 | % | 11.57 | % | 11.37 | % | N/A | ||||||||||||||
Expense Ratios | |||||||||||||||||||||||
Gross | 2.31% | 1.17% | 1.45% | ||||||||||||||||||||
With Applicable Waivers | 1.40% | 1.15% | 1.25% |
Past performance is not indicative of future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month's end, please visit www.vcm.com.
The above expense ratios are from the Fund's prospectus dated November 1, 2019, as supplemented May 1, 2020. Additional information pertaining to the Fund's expense ratios as of June 30, 2020 can be found in the financial highlights. The Adviser has contractually agreed to waive a portion of its management fee and/or reimburse certain expenses for each class of shares through October 31, 2020.
The maximum offering price (MOP) figures reflect a maximum sales charge of 5.75% for Class A Shares. NAV does not reflect sales charges.
The total return figures set forth above include all waivers of fees for various periods since inception. Without such fee waivers, the total returns would have been lower. Some fee waivers are voluntary and may be modified or terminated at any time.
Victory Munder Small Cap Growth Fund — Growth of $10,000
1The Russell 2000® Growth Index is an unmanaged index that measures the performance of those Russell 2000® companies with higher price-to-book ratios and higher forecasted growth values. This index does not include the effect of sales charges and is not representative of the Fund. It is not possible to invest directly in an index.
The graph reflects investment growth of a hypothetical $10,000 investment in Class A Shares of the Fund. The performance of other classes of the Fund's shares will be greater than or less than the line shown based on the differences in loads and fees paid by shareholders investing in the different classes. Past performance is no guarantee of future results.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
28
Victory Trivalent Emerging Markets Small-Cap Fund
What were the market conditions during the reporting period?
Global markets sold off in the last year as trade uncertainty and the novel coronavirus ("COVID-19") pandemic left investors uncertain about future global growth and the potential impact on emerging market small cap equities. For the full year, the MSCI Emerging Markets Small Cap Index (the "Index") declined, ending the reporting period at -8.82%. Not surprisingly, there was a wide dispersion among country returns. Despite the overall negative return by the Index, several countries posted positive returns. Taiwan was the top-performing country within the Index. Taiwan's GDP growth has been resilient and more Taiwanese companies are investing in the domestic market to insulate themselves from trade uncertainty. Turkish small-cap equities returned 13.2% after the Central Bank slashed the key interest rate by 4.25% in August. Thinly traded securities in Saudi Arabia increased as structural reforms and government-led spending programs improved the outlook for small-cap equities. China was a relative outperformer. The first wave of countries impacted by COVID-19 are already seeing a strong recovery in outlook with business surveys signaling growth in China. Argentina had the worst-performing securities in the Index, ignited by a surprisingly poor performance by the country's center-right President Macri in the August 2019 primary election. Chilean securities declined as protests over inequality cost the country an estimated $3 billion in damages and lost earnings to its citizens. India was a relative underperformer as economic growth remains below expectations in the country, particularly in the Manufacturing sector.
Information Technology (+24.7%) and Health Care (+20.8%) sectors were strong, and the only sectors to post positive returns. Information Technology got a boost from solid export results for Taiwanese technology companies. Health Care performance was driven by a continued flow of money into the innovative biotechnology industry and equipment and service providers that are seeing a surge in virus-related sales. At the other end of the spectrum, Financials declined 29.7% and was the worst-performing sector.
How did Victory Trivalent Emerging Markets Small-Cap Fund (the "Fund") perform during the reporting period?
The Fund seeks to provide long-term capital growth. The Fund returned 0.48% (Class A Shares at net asset value) for the fiscal year ended June 30, 2020, outperforming the Index, which returned -8.82% for the period.
What strategies did you employ during the reporting period?
The Fund outperformed in all three geographic regions and 10 of the 11 economic sectors. Our exposure to higher quality, more profitable companies was supportive, offsetting an extended challenging environment for value. Stock selection was particularly strong in Health Care, Information Technology, and Consumer Discretionary. The Korean biotechnology company Seegene, Inc. was the top contributor, up over 300% as its COVID-19 test kit received emergency approval from Korean authorities, and the test kits are now being shipped to
Portfolio Holdings
As a Percentage of Total Investments
29
Victory Trivalent Emerging Markets Small-Cap Fund (continued)
governments and medical facilities across the world. Also within Health Care, Malaysian latex glove manufacturer Supermax rose 252.4% as global demand for latex and nitrile gloves surged and average selling prices increased. Another strong performer in Health Care was Taidoc Technology, which returned 77.9%. The Taiwanese medical equipment manufacturer experienced a significant uptick in export volumes for their forehead/ear thermometers. Performance in Information Technology got a boost from two names. NHN KCP, up 139.6%, as the Korean payments processor is expected to be a beneficiary of more on-line transaction activity. Parade Technologies, a Taiwanese provider of high-speed interfacing chips, increased 99.7% as end market opportunities expand to include data centers. Performance in Consumer Discretionary got a boost from Chinese e-bike battery manufacturer Tianneng Power, which increased 120.9%. Orders for bikes and e-bikes have seen strong growth, especially in China as biking has become a more favored mode of transportation during the pandemic.
The Fund trailed the Index in the Real Estate sector. Resilient REIT, a company in South Africa, declined 42.3% due to the rapidly deteriorating outlook for its retail focused tenants. Many discretionary retail stores in South Africa have temporarily closed in an effort to fight the spread of COVID-19. Another real estate developer, Vista Land & Lifescapes, fell 44.8% as sales slowed due to COVID-19 stay-at-home orders across the Philippines.
30
Victory Trivalent Emerging Markets Small-Cap Fund (continued)
Average Annual Total Return
Year Ended June 30, 2020
Class A | Class Y | ||||||||||||||||||||||
INCEPTION DATE | 7/2/13 | 7/2/13 | |||||||||||||||||||||
Net Asset Value | Maximum Offering Price | Net Asset Value | MSCI Emerging Markets Small Cap Index1 | S&P Emerging Plus SmallCap Index2 | |||||||||||||||||||
One Year | 0.48 | % | –5.31 | % | 0.70 | % | –8.82 | % | –5.51 | % | |||||||||||||
Three Year | 2.24 | % | 0.25 | % | 2.47 | % | –2.95 | % | –1.05 | % | |||||||||||||
Five Year | 3.10 | % | 1.89 | % | 3.35 | % | –1.38 | % | –0.05 | % | |||||||||||||
Ten Year | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||
Since Inception | 4.40 | % | 3.52 | % | 4.65 | % | N/A | N/A | |||||||||||||||
Expense Ratios | |||||||||||||||||||||||
Gross | 2.74% | 2.24% | |||||||||||||||||||||
With Applicable Waivers | 1.75% | 1.50% |
Past performance is not indicative of future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month's end, please visit www.vcm.com.
The above expense ratios are from the Fund's prospectus dated November 1, 2019, as supplemented May 1, 2020. Additional information pertaining to the Fund's expense ratios as of June 30, 2020 can be found in the financial highlights. The Adviser has contractually agreed to waive a portion of its management fee and/or reimburse certain expenses for each class of shares through October 31, 2020.
The maximum offering price (MOP) figures reflect a maximum sales charge of 5.75% for Class A Shares. NAV does not reflect sales charges.
The total return figures set forth above include all waivers of fees for various periods since inception. Without such fee waivers, the total returns would have been lower. Some fee waivers are voluntary and may be modified or terminated at any time.
Victory Trivalent Emerging Markets Small-Cap Fund — Growth of $10,000
1The MSCI Emerging Markets SmallCap Index is designed to measure equity market performance of 26 emerging markets and targets approximately 14% of each market's free-float adjusted market capitalization. Securities indexes assume reinvestment of all distributions and interest payments and do not take into account brokerage fees or taxes. Securities in the Fund may not match those in the index and performance of the Fund will differ. Direct investment in an index is not possible.
2The S&P Emerging Plus SmallCap Index consists of the bottom 15% (based on market capitalization) of companies from each country represented in the S&P Emerging BMI plus Korea. The S&P Emerging BMI includes companies domiciled in 20 emerging markets countries with float-adjusted market capitalizations of at least US$100 million and annual trading liquidity of at least US$50 million. This index does not include the effect of sales charges and is not representative of the Fund. It is not possible to invest directly in an index.
The graph reflects investment growth of a hypothetical $10,000 investment in Class A Shares of the Fund. The performance of other classes of the Fund's shares will be greater than or less than the line shown based on the differences in loads and fees paid by shareholders investing in the different classes. Past performance is no guarantee of future results.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
31
Victory Trivalent International Fund-Core Equity
What were the market conditions during the reporting period?
International equities declined over the one-year period as the unexpected outbreak of the novel coronavirus ("COVID-19") grew into a global pandemic. The outbreak intensified during the first quarter of 2020 and volatility spiked as the economic impact from mitigation measures began to materialize. For the trailing year ended June 30, 2020, the MSCI ACWI ex USA Index (the "Index") was dragged down by a 23.36% decline in the first quarter of 2020, ending the reporting period at -4.80%. There was wide dispersion among country returns in the Index, with emerging markets modestly outperforming their developed peers. The United Kingdom was among the worst hit by COVID-19. As a result, the U.K. economy contracted more than anticipated during the first quarter due to a sharp fall in consumer spending. Brazil was a weak market, stocks were down as the Brazilian real depreciated 30% relative to the U.S. dollar largely due to concerns of the virus's impact on the country's economy. Within AsiaPacific, Hong Kong underperformed the broader index, down after China approved plans to impose controversial national security laws in the region. The new laws raise concern over Hong Kong's semi-autonomous status and its future importance as an international business center. On the upside, stocks in Taiwan were up, driven by strength in the Information Technology sector. China advanced as the first wave of countries impacted by COVID-19 are already seeing a strong recovery in outlook with business surveys signaling growth in China. Sweden advanced, given the country imposed less-stringent COVID-19 containment measures than its neighbors and avoided a dramatic economic contraction.
Sector returns in the Index were mixed as Energy stocks were hit the hardest, down 31.1%. The price of Brent Crude plummeted 38.2% on demand shocks from the near-shutdown of many economies to contain COVID-19. Financials declined 19.9% as low rates continue to squeeze net interest margins for the banking industry. Although often considered defensive, Real Estate stocks fell 18.5% on concerns of tenant payments given widespread work-from-home mandates. On the other end of the spectrum, Information Technology and Health Care were the top performers, returning 21.2% and 20.4%, respectively.
How did the Victory Trivalent International Fund—Core Equity (the "Fund") perform during the reporting period?
The Fund seeks to provide long-term capital growth. The Fund returned -4.86% (Class A Shares at net asset value) for the fiscal year ended June 30, 2020, slightly underperforming the Index, which returned -4.80% for the period.
What strategies did you employ during the reporting period?
Overall security selection was positive as excess returns were generated in four of six regions and eight of the 11 sectors. Notable outperformance was generated in the Consumer Staples, Financials, and Information Technology sectors. Chinese super and hypermarket store operator Sun Art Retail increased 29.2% as food retailers have been safe havens in the
Portfolio Holdings
As a Percentage of Total Investments
32
Victory Trivalent International Fund-Core Equity (continued)
current environment. Sun Art also benefited from its e-commerce platform in China. A position in BNP Paribas ("BNP") boosted performance in Financials. The French bank advanced 38.3% following better-than-expected results in corporate investment banking. BNP, along with most European banks, has delayed paying dividends to ensure capital ratios remain strong and the ability to lend is uninterrupted in the current environment. Within Information Technology, Logitech International S.A. was a relative outperformer with a 64.7% return. The Swiss company's broad product suite includes gear for computing, video conferencing, and gaming, to enhance both work and play while at home.
On the downside, the Fund's security selection was weakest in the Industrials and Materials sectors. Aircraft lessor Aercap Holdings fell 70.9% as the sudden implementation of travel bans and uncertainty over resumption of normal activities of airline customers adds to concerns over client payments and asset values. PT Wijaya Karya Tbk was another top detractor. The Indonesian construction firm fell 49.7% on concerns activity and new ordering will be impaired if the pandemic leads to a prolonged shutdown. Canadian bulk and base metals player, Teck Resources Limited, declined 56.4% as several of its commodities came under pressure on the back of the global economic slowdown and trade concerns. Metallurgical or "coking" coal prices dropped materially during the period and had the biggest impact on the company's performance.
33
Victory Trivalent International Fund-Core Equity (continued)
Average Annual Total Return
Year Ended June 30, 2020
Class A | Class C | Class I | Class R6 | Class Y | |||||||||||||||||||||||||||||||
INCEPTION DATE | 8/16/07 | 8/16/07 | 8/16/07 | 3/3/15 | 8/16/07 | ||||||||||||||||||||||||||||||
Net Asset Value | Maximum Offering Price | Net Asset Value | Contingent Deferred Charges | Net Asset Value | Net Asset Value | Net Asset Value | MSCI ACWI ex USA Index1 | ||||||||||||||||||||||||||||
One Year | –4.86 | % | –10.33 | % | –5.48 | % | –6.42 | % | –4.50 | % | –4.34 | % | –4.60 | % | –4.80 | % | |||||||||||||||||||
Three Year | 0.31 | % | –1.65 | % | –0.42 | % | –0.42 | % | 0.70 | % | 0.76 | % | 0.55 | % | 1.13 | % | |||||||||||||||||||
Five Year | 1.46 | % | 0.26 | % | 0.71 | % | 0.71 | % | 1.88 | % | 1.94 | % | 1.72 | % | 2.26 | % | |||||||||||||||||||
Ten Year | 5.76 | % | 5.12 | % | 4.96 | % | 4.96 | % | 6.26 | % | N/A | 6.01 | % | 4.97 | % | ||||||||||||||||||||
Since Inception | 0.15 | % | –0.31 | % | –0.62 | % | –0.62 | % | 0.62 | % | 2.07 | % | 0.39 | % | N/A | ||||||||||||||||||||
Expense Ratios | |||||||||||||||||||||||||||||||||||
Gross | 1.97% | 5.23% | 1.77% | 1.46% | 1.41% | ||||||||||||||||||||||||||||||
With Applicable Waivers | 0.96% | 1.71% | 0.61% | 0.56% | 0.71% |
Past performance is not indicative of future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month's end, please visit www.vcm.com.
The above expense ratios are from the Fund's prospectus dated November 1, 2019, as supplemented May 1, 2020. Additional information pertaining to the Fund's expense ratios as of June 30, 2020 can be found in the financial highlights. The Adviser has contractually agreed to waive a portion of its management fee and/or reimburse certain expenses for each class of shares through October 31, 2020.
The maximum offering price (MOP) figures reflect a maximum sales charge of 5.75% for Class A Shares. NAV does not reflect sales charges.
The total return figures set forth above include all waivers of fees for various periods since inception. Without such fee waivers, the total returns would have been lower. Some fee waivers are voluntary and may be modified or terminated at any time.
Victory Trivalent International Fund-Core Equity — Growth of $10,000
1The MSCI ACWI ex USA Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets. The index consists of 44 country indices comprising 22 developed and 26 emerging market county indices. The index is unmanaged and its results include reinvested dividends and/or distributions, but do not reflect the effect of sales charges, commissions, expenses or taxes. It is not possible to invest directly in an index.
The graph reflects investment growth of a hypothetical $10,000 investment in Class A Shares of the Fund. Past performance is no guarantee of future results.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
34
Victory Trivalent International Small-Cap Fund
What were the market conditions during the reporting period?
International small-cap equities declined over the one-year period as the unexpected outbreak of the novel coronavirus ("COVID-19") grew into a global pandemic. The outbreak intensified during the first quarter of 2020 and volatility spiked as the economic impact from mitigation measures began to materialize. For the trailing year ended June 30, 2020, the S&P Developed Ex-U.S. SmallCap Index (the "Index") fell, dragged down by a 28.75% decline in the first quarter of 2020, ending the period at -4.14%. There was wide dispersion among country returns in the Index. The United Kingdom was among the worst hit by COVID-19. As a result, the U.K. economy contracted more than anticipated during the first quarter due to a sharp fall in consumer spending. Within AsiaPacific, Hong Kong underperformed the broader Index, after China approved plans to impose controversial national security laws in the region. The new laws raise concern over Hong Kong's semi-autonomous status and its future importance as an international business center. On the upside, Sweden advanced given the country imposed less-stringent coronavirus containment measures than its neighbors and avoided a dramatic economic contraction, while Denmark was largely driven by strength in the Health Care sector.
Sector returns in the Index were mixed as Energy stocks were hit the hardest, down 40.2%. The price of Brent Crude plummeted 38.2% on demand shocks from the near-shutdown of many economies to contain COVID-19. Financials declined 13.1%, as low rates continue to squeeze net interest margins for the banking industry. Although often considered defensive, Real Estate stocks fell 9.1% on concerns of tenant payments given widespread work-from-home mandates. On the other end of the spectrum, Information Technology stocks were the top performers, returning 16.0%. The more defensive Utilities sector was also strong, up 12.4%.
How did the Victory Trivalent International Small-Cap Fund (the "Fund") perform during the reporting period?
The Fund seeks to provide long-term capital growth. The Fund returned 0.15% (Class A Shares at net asset value) for the fiscal year ended June 30, 2020, outperforming the Index, which returned -4.14% for the period.
What strategies did you employ during the reporting period?
Overall security selection was positive and accounted for most of the Fund's outperformance. Excess returns were generated in all five geographic regions and seven of the 11 economic sectors. Stylistically, growth stocks outperformed value stocks by a wide margin. Notable outperformance was generated in the Information Technology, Communication Services, and Health Care sectors. A sizable position in Lasertec Corporation boosted performance in the Information Technology sector. The Japanese provider of semiconductor equipment increased 374.8% during the period on sustained strong order momentum of its photomask inspection systems required for EUV lithography. Within Communication Services, Swedish digital game
Portfolio Holdings
As a Percentage of Total Investments
35
Victory Trivalent International Small-Cap Fund (continued)
developer Stillfront Group AB increased 197.9% as its various game categories have exceeded expectations and player retention rates remain strong. Health Care holding Seegene, Inc. was the top contributor to the Fund during the period. The Korean biotechnology company jumped over 300% as its COVID-19 test kit received emergency approval from Korean authorities, and the test kits are now being shipped to governments and medical facilities across the world.
On the downside, security selection was weakest in the Industrials and Financials sectors. Industrials holding National Express Group, a U.K.-listed bus operator, fell 54.1% as travel restrictions and school closures will have a negative short-term impact on its bus coach and school bus operations. Within the Financials sector, Deutsche Pfandbriefbank declined 39.3% on concerns its primary funding source, mortgage securitization, will be negatively affected by factors relating to the COVID-19 pandemic.
36
Victory Trivalent International Small-Cap Fund (continued)
Average Annual Total Return
Year Ended June 30, 2020
Class A | Class C | Class I | Class R6 | Class Y | |||||||||||||||||||||||||||||||
INCEPTION DATE | 8/17/07 | 8/17/07 | 8/17/07 | 6/1/12 | 8/17/07 | ||||||||||||||||||||||||||||||
Net Asset Value | Maximum Offering Price | Net Asset Value | Contingent Deferred Charges | Net Asset Value | Net Asset Value | Net Asset Value | S&P Developed Ex-U.S. SmallCap Index1 | ||||||||||||||||||||||||||||
One Year | 0.15 | % | –5.58 | % | –0.65 | % | –1.63 | % | 0.54 | % | 0.36 | % | 0.41 | % | –4.14 | % | |||||||||||||||||||
Three Year | 2.02 | % | 0.01 | % | 1.25 | % | 1.25 | % | 2.44 | % | 2.29 | % | 2.29 | % | –0.05 | % | |||||||||||||||||||
Five Year | 3.55 | % | 2.33 | % | 2.76 | % | 2.76 | % | 3.96 | % | 3.81 | % | 3.81 | % | 3.03 | % | |||||||||||||||||||
Ten Year | 10.04 | % | 9.39 | % | 9.23 | % | 9.23 | % | 10.52 | % | N/A | 10.33 | % | 7.22 | % | ||||||||||||||||||||
Since Inception | 3.40 | % | 2.93 | % | 2.62 | % | 2.62 | % | 3.86 | % | 10.52 | % | 3.65 | % | N/A | ||||||||||||||||||||
Expense Ratios | |||||||||||||||||||||||||||||||||||
Gross | 1.61% | 2.44% | 1.18% | 1.10% | 1.20% | ||||||||||||||||||||||||||||||
With Applicable Waivers | 1.37% | 2.12% | 0.97% | 1.10% | 1.12% |
Past performance is not indicative of future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month's end, please visit www.vcm.com.
The above expense ratios are from the Fund's prospectus dated November 1, 2019, as supplemented May 1, 2020. Additional information pertaining to the Fund's expense ratios as of June 30, 2020 can be found in the financial highlights. The Adviser has contractually agreed to waive a portion of its management fee and/or reimburse certain expenses for each class of shares through October 31, 2020.
The maximum offering price (MOP) figures reflect a maximum sales charge of 5.75% for Class A Shares. NAV does not reflect sales charges.
The total return figures set forth above include all waivers of fees for various periods since inception. Without such fee waivers, the total returns would have been lower. Some fee waivers are voluntary and may be modified or terminated at any time.
Victory Trivalent International Small-Cap Fund — Growth of $10,000
1The S&P Developed Ex-U.S. SmallCap Index consists of the stocks representing the lowest 15% of float-adjusted market capitalization in each country other than the United States represented in the S&P Developed Broad Market Index (BMI). The S&P Developed BMI includes all listed shares of companies from 26 developed countries with float-adjusted market capitalizations of at least US$100 million and annual trading value of at least US$50 million. This index does not include the effect of sales charges and is not representative of the Fund. It is not possible to invest directly in an index.
The graph reflects investment growth of a hypothetical $10,000 investment in Class A Shares of the Fund. The performance of other classes of the Fund's shares will be greater than or less than the line shown based on the differences in loads and fees paid by shareholders investing in the different classes. Past performance is no guarantee of future results.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
37
Victory INCORE Total Return Bond Fund
What were the market conditions during the reporting period?
After experiencing one of the most dramatic selloffs in market history during the first quarter of 2020, global equity and debt markets recovered nearly all their lost value in the second quarter. Markets recovered despite the U.S. economy experiencing its highest unemployment rate since 1940, corporate defaults approaching levels last seen during the Great Recession of 2007-2009, and residual concerns about a second wave of COVID-19 related closures slowing the economic recovery. However, accommodative monetary and fiscal policy are providing nearly $7 trillion in stimulus to the economy and markets, reminding investors that the "Fed put" is alive and well.
Economists' attention has been focused on understanding the long-term consequences of hitting the "pause button" on economic activity. What we know thus far is the economy likely hit bottom in April and it appears we are entering the third month of a promising recovery. While jobs and manufacturing activity are recovering robustly, you cannot crash the economic car without doing some structural damage; structural damage that may not be fully understood for quarters ahead. In the meantime, markets are myopically focused on recovery numbers that thus far are rebounding faster than expectation.
Specifically, unemployment spiked from an all-time low in February of 3.5% to an 80-year high of 14.7% in April. The April high was far greater than the peak 10% unemployment rate reached during the Great Recession of 2007-2009 and represents the highest level seen since 1940, a year prior to the United States entering World War II. The dramatic jump in the U.S. unemployment rate over a short two-month period clearly illustrates the devastating impact this pandemic had on economic activity. However, markets are forward-expectation pricing mechanisms, and what the market is clearly concerned about today is not last month's unemployment numbers, but the pace of this economic recovery. Since the April bottom, employment has strongly rebounded back to an 11.1% unemployment level. While still exceeding the 2009 10% peak, the job recovery numbers for May and June were the highest ever recorded.
While the initial rebound in economic activity has outpaced expectations, most forecasters believe the U.S. economy will take 18-24 months to recover to pre-COVID production levels. Despite this prolonged recovery schedule, markets have recovered most of their lost value and are nearing pre-COVID price levels. Many long-time market strategists view this market as overvalued versus fundamentals; and while we believe they may be correct, the impact of a massive $7 trillion in combined fiscal and monetary stimulus should not be discounted. The U.S. Federal Reserve (the "Fed"), for the first time in its history, is now buying both investment-grade and high-yield corporate bonds and exchange-traded funds. This overwhelming amount of stimulus has driven 10-year treasury yields to all-time lows, disincentivizing investments in U.S. Treasuries, creating a "TINA" (There is No Alternative) environment for risk assets.
Portfolio Holdings
As a Percentage of Total Investments
38
Victory INCORE Total Return Bond Fund (continued)
As the old market adage goes, "the market climbs the wall of worry." However, with all the monetary and fiscal stimulus currently being directed at financial markets, a more appropriate modification to this saying would be, it's easy to climb the wall of worry when you have a ladder and safety net provided by the Fed.
How did Victory INCORE Total Return Bond Fund (the "Fund") perform during the reporting period?
The Fund seeks to provide a high level of current income together with capital appreciation. The Fund returned 7.57% (Class A Shares at net asset value), underperforming its benchmark, Bloomberg Barclays U.S. Aggregate Bond Index (the "Index"), which returned 8.74% for the fiscal year ended June 30, 2020.
The Fund came into 2020 overweight in agency mortgages and a relatively light corporate credit exposure with only a modest overweight to zero-to-three-year BBB corporates. During the late part of the first quarter of 2020, during the worst of the market rout, we moved to a large overweight position in corporate credit across the curve. The Fund greatly benefitted from this positioning during the second quarter of 2020, outpacing the Index by 1.10% net of fees based on A Share performance.
What strategies did you employ during the reporting period?
INCORE believes with short- and intermediate-term U.S. Treasuries yielding less than 1%, investors have no other reasonable alternative but to invest in high-quality corporate and consumer credit. We believe investors aren't receiving enough yield or duration benefit from owning U.S. Treasuries at current yield levels. As a result, we added a significant overweight to corporate credit at discounted valuations late in the first quarter and beginning part of the second quarter. We maintained this overweight at quarter end and continue to selectively add high-grade corporates across the curve as opportunities present themselves. Despite our overweight and selective adds, we believe with Fed intervention, spread levels have gotten ahead of fundamentals, and we generally are choosing to overweight quality corporate credits over more cuspy situations.
Furthermore, we believe the massive monetary and fiscal stimulus being directed at stabilizing the markets and economy will help provide a meaningful rebound in second-half economic growth. However, it's likely to be a volatile and uncertain time until a therapeutic allows for lifting the social distancing restrictions. The key attributes we strive for when positioning client portfolios for an uncertain outlook are quality, balance, and diversification. We believe we are well positioned across our portfolios for this uncertain environment with our up-in-quality overweight to corporate credit as we believe U.S. Treasuries offer little portfolio benefit when yields are below 1%.
39
Victory INCORE Total Return Bond Fund (continued)
Average Annual Total Return
Year Ended June 30, 2020
Class A | Class C | Class R6 | Class Y | ||||||||||||||||||||||||||||
INCEPTION DATE | 12/9/92 | 3/25/96 | 3/3/15 | 12/1/91 | |||||||||||||||||||||||||||
Net Asset Value | Maximum Offering Price | Net Asset Value | Contingent Deferred Charges | Net Asset Value | Net Asset Value | Bloomberg Barclays U.S. Aggregate Bond Index1 | |||||||||||||||||||||||||
One Year | 7.57 | % | 5.45 | % | 6.76 | % | 5.76 | % | 7.94 | % | 7.92 | % | 8.74 | % | |||||||||||||||||
Three Year | 4.23 | % | 3.55 | % | 3.50 | % | 3.50 | % | 4.57 | % | 4.54 | % | 5.32 | % | |||||||||||||||||
Five Year | 3.39 | % | 2.97 | % | 2.63 | % | 2.63 | % | 3.69 | % | 3.67 | % | 4.30 | % | |||||||||||||||||
Ten Year | 3.72 | % | 3.51 | % | 2.95 | % | 2.95 | % | N/A | 3.99 | % | 3.82 | % | ||||||||||||||||||
Since Inception | 4.84 | % | 4.76 | % | 3.82 | % | 3.82 | % | 3.23 | % | 5.06 | % | N/A | ||||||||||||||||||
Expense Ratios | |||||||||||||||||||||||||||||||
Gross | 1.09% | 3.12% | 0.57% | 0.63% | |||||||||||||||||||||||||||
With Applicable Waivers | 0.85% | 1.60% | 0.57% | 0.60% |
Past performance is not indicative of future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month's end, please visit www.vcm.com.
The above expense ratios are from the Fund's prospectus dated November 1, 2019, as supplemented July 20, 2020. Additional information pertaining to the Fund's expense ratios as of June 30, 2020 can be found in the financial highlights. The Adviser has contractually agreed to waive a portion of its management fee and/or reimburse certain expenses for each class of shares through October 31, 2020.
The maximum offering price (MOP) figures reflect a maximum sales charge of 2.00% for Class A Shares. NAV does not reflect sales charges.
The total return figures set forth above include all waivers of fees for various periods since inception. Without such fee waivers, the total returns would have been lower. Some fee waivers are voluntary and may be modified or terminated at any time.
Victory INCORE Total Return Bond Fund — Growth of $10,000
1The Bloomberg Barclays U.S. Aggregate Bond Index measures the performance of the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable rate mortgage (ARM) pass-throughs), asset-backed securities and commercial mortgage-backed securities. This index does not include the effect of sales charges and is not representative of the Fund. It is not possible to invest directly in an index.
The graph reflects investment growth of a hypothetical $10,000 investment in Class A Shares of the Fund. The performance of other classes of the Fund's shares will be greater than or less than the line shown based on the differences in loads and fees paid by shareholders investing in the different classes. Past performance is no guarantee of future results.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares
40
Victory Portfolios Victory Integrity Discovery Fund | Schedule of Portfolio Investments June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Common Stocks (97.2%) | |||||||||||
Banks (22.9%): | |||||||||||
Altabancorp | 22,200 | $ | 499 | ||||||||
Atlantic Capital Bancshares, Inc. (a) | 43,400 | 528 | |||||||||
Bridge Bancorp, Inc. | 25,600 | 585 | |||||||||
Civista Bancshares, Inc. | 32,200 | 496 | |||||||||
Equity Bancshares, Inc., Class A (a) | 24,525 | 428 | |||||||||
Financial Institutions, Inc. | 22,000 | 409 | |||||||||
First Bancorp, Inc., Class A | 3,300 | 83 | |||||||||
First Bank/Hamilton NJ | 42,390 | 276 | |||||||||
First Foundation, Inc. | 33,700 | 551 | |||||||||
First Internet Bancorp | 24,800 | 412 | |||||||||
First Mid Bancshares, Inc. | 21,800 | 572 | |||||||||
Franklin Financial Network, Inc. | 15,000 | 386 | |||||||||
FVCBankcorp, Inc. (a) (b) | 26,710 | 287 | |||||||||
German American Bancorp, Inc., Class A | 20,000 | 621 | |||||||||
HarborOne Bancorp, Inc. (a) | 62,900 | 537 | |||||||||
Heritage Commerce Corp. | 70,900 | 532 | |||||||||
Heritage Financial Corp. | 16,260 | 325 | |||||||||
Hometrust Bancshares, Inc. | 30,200 | 483 | |||||||||
Howard Bancorp, Inc. (a) | 29,000 | 308 | |||||||||
Independent Bank Corp. | 37,800 | 561 | |||||||||
Mercantile Bank Corp. | 24,550 | 555 | |||||||||
Origin Bancorp, Inc. | 23,031 | 507 | |||||||||
Peoples Bancorp, Inc. | 25,400 | 541 | |||||||||
QCR Holdings, Inc. | 18,950 | 590 | |||||||||
SB One Bancorp | 17,719 | 349 | |||||||||
SmartFinancial, Inc. | 32,500 | 526 | |||||||||
Southern National Bancorp of Virginia, Inc. | 50,000 | 485 | |||||||||
The First Bancshares, Inc. | 24,150 | 543 | |||||||||
TriCo Bancshares | 4,500 | 137 | |||||||||
Univest Financial Corp. | 36,600 | 591 | |||||||||
Washington Trust Bancorp, Inc. | 16,600 | 544 | |||||||||
14,247 | |||||||||||
Capital Markets (1.8%): | |||||||||||
Cowen, Inc., Class A (b) | 41,000 | 664 | |||||||||
Diamond Hill Investment Group, Inc. | 3,798 | 432 | |||||||||
1,096 | |||||||||||
Communication Services (1.7%): | |||||||||||
Entravision Communications Corp., Class A | 128,350 | 184 | |||||||||
The E.W. Scripps Co., Class A | 53,382 | 467 | |||||||||
The Marcus Corp. | 32,200 | 427 | |||||||||
1,078 | |||||||||||
Consumer Discretionary (13.2%): | |||||||||||
BJ's Restaurants, Inc. | 18,700 | 392 | |||||||||
Century Communities, Inc. (a) | 19,166 | 588 | |||||||||
Chico's FAS, Inc. | 151,000 | 208 | |||||||||
Chuy's Holdings, Inc. (a) | 18,000 | 268 |
See notes to financial statements.
41
Victory Portfolios Victory Integrity Discovery Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Dave & Buster's Entertainment, Inc. (b) | 20,212 | $ | 269 | ||||||||
Genesco, Inc. (a) | 17,000 | 368 | |||||||||
G-III Apparel Group Ltd. (a) | 11,750 | 156 | |||||||||
Guess?, Inc. (b) | 21,000 | 203 | |||||||||
Hibbett Sports, Inc. (a) | 22,700 | 475 | |||||||||
M/I Homes, Inc. (a) | 17,300 | 595 | |||||||||
Malibu Boats, Inc., Class A (a) | 12,080 | 628 | |||||||||
MarineMax, Inc. (a) | 24,500 | 549 | |||||||||
Modine Manufacturing Co. (a) | 68,000 | 375 | |||||||||
Motorcar Parts of America, Inc. (a) (b) | 36,000 | 636 | |||||||||
OneWater Marine, Inc. (a) (b) | 18,700 | 454 | |||||||||
Potbelly Corp. (a) (b) | 121,600 | 277 | |||||||||
Shoe Carnival, Inc. (b) | 19,850 | 581 | |||||||||
Universal Electronics, Inc. (a) | 10,400 | 487 | |||||||||
Zumiez, Inc. (a) | 25,700 | 704 | |||||||||
8,213 | |||||||||||
Consumer Finance (0.9%): | |||||||||||
EZCORP, Inc., Class A (a) | 90,000 | 567 | |||||||||
Consumer Staples (0.2%): | |||||||||||
Rite Aid Corp. (a) (b) | 8,100 | 138 | |||||||||
Energy (4.1%): | |||||||||||
DHT Holdings, Inc. (b) | 52,800 | 271 | |||||||||
Earthstone Energy, Inc., Class A (a) | 95,793 | 272 | |||||||||
International Seaways, Inc. | 15,121 | 247 | |||||||||
Magnolia Oil & Gas Corp., Class A (a) | 44,232 | 268 | |||||||||
Matrix Service Co. (a) | 37,290 | 363 | |||||||||
Natural Gas Services Group, Inc. (a) | 35,000 | 219 | |||||||||
Newpark Resources, Inc. (a) | 116,000 | 259 | |||||||||
ProPetro Holding Corp. (a) | 28,100 | 144 | |||||||||
Solaris Oilfield Infrastructure, Inc., Class A (b) | 40,300 | 299 | |||||||||
Tidewater, Inc. (a) | 32,662 | 183 | |||||||||
2,525 | |||||||||||
Health Care (6.0%): | |||||||||||
Community Health Systems, Inc. (a) (b) | 138,300 | 416 | |||||||||
Hanger, Inc. (a) | 29,750 | 493 | |||||||||
Invacare Corp. (b) | 87,000 | 554 | |||||||||
Owens & Minor, Inc. (b) | 72,300 | 551 | |||||||||
RadNet, Inc. (a) | 43,000 | 682 | |||||||||
RTI Surgical Holdings, Inc. (a) | 184,000 | 585 | |||||||||
Surgery Partners, Inc. (a) | 26,500 | 307 | |||||||||
Varex Imaging Corp. (a) | 12,850 | 195 | |||||||||
3,783 | |||||||||||
Industrials (15.5%): | |||||||||||
CIRCOR International, Inc. (a) | 19,500 | 497 | |||||||||
Columbus McKinnon Corp. | 20,500 | 686 | |||||||||
Covenant Transport Group, Inc., Class A (a) | 37,000 | 534 | |||||||||
CRA International, Inc. | 11,900 | 470 | |||||||||
Ducommun, Inc. (a) | 8,415 | 293 |
See notes to financial statements.
42
Victory Portfolios Victory Integrity Discovery Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
DXP Enterprise, Inc. (a) | 22,239 | $ | 443 | ||||||||
Eagle Bulk Shipping, Inc. (a) (b) | 196,880 | 431 | |||||||||
Echo Global Logistics, Inc. (a) | 31,750 | 686 | |||||||||
Foundation Building Materials, Inc. (a) | 29,500 | 460 | |||||||||
Great Lakes Dredge & Dock Corp. (a) | 59,700 | 553 | |||||||||
Hawaiian Holdings, Inc. | 17,200 | 241 | |||||||||
Heidrick & Struggles International, Inc. | 17,300 | 374 | |||||||||
Heritage-Crystal Clean, Inc. (a) | 21,921 | 383 | |||||||||
Kelly Services, Inc., Class A | 34,300 | 543 | |||||||||
Maxar Technologies, Inc. (b) | 30,800 | 554 | |||||||||
MYR Group, Inc. (a) | 13,500 | 431 | |||||||||
NN, Inc. (b) | 83,500 | 396 | |||||||||
Park-Ohio Holdings Corp. (b) | 16,120 | 267 | |||||||||
SP Plus Corp. (a) | 23,531 | 487 | |||||||||
Team, Inc. (a) | 51,600 | 287 | |||||||||
The Shyft Group, Inc. | 27,500 | 463 | |||||||||
VSE Corp. | 5,600 | 176 | |||||||||
9,655 | |||||||||||
Information Technology (11.9%): | |||||||||||
ADTRAN, Inc. | 28,000 | 306 | |||||||||
Axcelis Technologies, Inc. (a) | 16,096 | 448 | |||||||||
Bel Fuse, Inc., Class B | 30,764 | 330 | |||||||||
Benchmark Electronics, Inc. | 8,400 | 181 | |||||||||
Cohu, Inc. | 37,700 | 655 | |||||||||
Conduent, Inc. (a) | 74,000 | 177 | |||||||||
CTS Corp. | 24,600 | 493 | |||||||||
Diebold Nixdorf, Inc. (a) (b) | 63,718 | 386 | |||||||||
Digi International, Inc. (a) | 48,900 | 570 | |||||||||
Harmonic, Inc. (a) | 128,000 | 608 | |||||||||
I3 Verticals, Inc., Class A (a) | 16,800 | 508 | |||||||||
Impinj, Inc. (a) (b) | 15,450 | 424 | |||||||||
Infinera Corp. (a) (b) | 63,896 | 378 | |||||||||
Mitek Systems, Inc. (a) | 54,000 | 519 | |||||||||
MobileIron, Inc. (a) | 94,680 | 467 | |||||||||
Photronics, Inc. (a) | 55,200 | 614 | |||||||||
Veeco Instruments, Inc. (a) | 13,700 | 185 | |||||||||
Vishay Precision Group, Inc. (a) | 7,600 | 187 | |||||||||
7,436 | |||||||||||
Insurance (1.1%): | |||||||||||
HCI Group, Inc. (b) | 2,300 | 106 | |||||||||
Heritage Insurance Holdings, Inc. | 42,500 | 557 | |||||||||
663 | |||||||||||
Materials (4.2%): | |||||||||||
Haynes International, Inc. | 22,650 | 529 | |||||||||
Koppers Holdings, Inc. (a) | 20,900 | 393 | |||||||||
Kraton Corp. (a) | 17,450 | 302 | |||||||||
Schnitzer Steel Industries, Inc. | 34,350 | 606 | |||||||||
SunCoke Energy, Inc. | 106,000 | 314 | |||||||||
Verso Corp., Class A | 41,600 | 498 | |||||||||
2,642 |
See notes to financial statements.
43
Victory Portfolios Victory Integrity Discovery Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Mortgage Real Estate Investment Trusts (1.0%): | |||||||||||
Dynex Capital, Inc. (b) | 29,400 | $ | 421 | ||||||||
Western Asset Mortgage Capital Corp. (b) | 84,725 | 232 | |||||||||
653 | |||||||||||
Real Estate (7.3%): | |||||||||||
Bluerock Residential Growth REIT, Inc. | 51,500 | 416 | |||||||||
CatchMark Timber Trust, Inc., Class A | 64,000 | 566 | |||||||||
Cedar Realty Trust, Inc. | 160,000 | 158 | |||||||||
City Office REIT, Inc. | 60,000 | 604 | |||||||||
Community Healthcare Trust, Inc. | 8,988 | 368 | |||||||||
Global Medical REIT, Inc. | 42,100 | 477 | |||||||||
Jernigan Capital, Inc. | 32,500 | 445 | |||||||||
NexPoint Residential Trust, Inc. | 9,900 | 350 | |||||||||
Plymouth Industrial REIT, Inc. | 34,000 | 435 | |||||||||
UMH Properties, Inc. | 28,500 | 369 | |||||||||
Urstadt Biddle Properties, Inc., Class A | 30,500 | 362 | |||||||||
4,550 | |||||||||||
Thrifts & Mortgage Finance (5.4%): | |||||||||||
Bridgewater Bancshares, Inc. (a) | 49,800 | 510 | |||||||||
Home Bancorp, Inc. | 12,600 | 337 | |||||||||
HomeStreet, Inc. | 25,500 | 628 | |||||||||
Meridian Bancorp, Inc. | 41,800 | 485 | |||||||||
PCSB Financial Corp. | 42,500 | 539 | |||||||||
Premier Financial Corp. | 48,300 | 853 | |||||||||
3,352 | |||||||||||
Total Common Stocks (Cost $71,060) | 60,598 | ||||||||||
Collateral for Securities Loaned^ (12.4%) | |||||||||||
BlackRock Liquidity Funds TempFund Portfolio, Institutional Class, 0.28% (c) | 128,369 | 128 | |||||||||
Fidelity Investments Money Market Government Portfolio, Class I, 0.09% (c) | 3,885,165 | 3,885 | |||||||||
Goldman Sachs Financial Square Prime Obligations Fund, Institutional Class, 0.30% (c) | 892,673 | 893 | |||||||||
JPMorgan Prime Money Market Fund, Capital Class, 0.43% (c) | 510,813 | 511 | |||||||||
Morgan Stanley Institutional Liquidity Prime Portfolio, Institutional Class, 0.41% (c) | 2,296,715 | 2,297 | |||||||||
Total Collateral for Securities Loaned (Cost $7,714) | 7,714 | ||||||||||
Total Investments (Cost $78,774) — 109.6% | 68,312 | ||||||||||
Liabilities in excess of other assets — (9.6)% | (5,995 | ) | |||||||||
NET ASSETS — 100.00% | $ | 62,317 |
^ Purchased with cash collateral from securities on loan.
(a) Non-income producing security.
(b) All or a portion of this security is on loan.
(c) Rate disclosed is the daily yield on June 30, 2020.
REIT — Real Estate Investment Trust
See notes to financial statements.
44
Victory Portfolios Victory Integrity Mid-Cap Value Fund | Schedule of Portfolio Investments June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Common Stocks (99.4%) | |||||||||||
Communication Services (1.6%): | |||||||||||
Cinemark Holdings, Inc. | 49,925 | $ | 577 | ||||||||
Nexstar Media Group, Inc., Class A | 19,540 | 1,635 | |||||||||
Take-Two Interactive Software, Inc. (a) | 7,110 | 992 | |||||||||
3,204 | |||||||||||
Consumer Discretionary (10.1%): | |||||||||||
Aptiv PLC | 12,535 | 977 | |||||||||
AutoZone, Inc. (a) | 1,430 | 1,613 | |||||||||
Best Buy Co., Inc. | 12,628 | 1,102 | |||||||||
Brunswick Corp. | 30,015 | 1,921 | |||||||||
D.R. Horton, Inc. | 35,950 | 1,993 | |||||||||
Darden Restaurants, Inc. (b) | 24,031 | 1,821 | |||||||||
Dick's Sporting Goods, Inc. | 29,300 | 1,209 | |||||||||
Hilton Worldwide Holdings, Inc. | 13,710 | 1,007 | |||||||||
Newell Brands, Inc. | 89,651 | 1,424 | |||||||||
Penske Automotive Group, Inc. | 35,240 | 1,364 | |||||||||
PulteGroup, Inc. | 36,765 | 1,251 | |||||||||
Ralph Lauren Corp. | 20,145 | 1,461 | |||||||||
Visteon Corp. (a) | 20,775 | 1,423 | |||||||||
WW International, Inc. (a) | 28,775 | 730 | |||||||||
Wyndham Destinations, Inc. | 40,133 | 1,131 | |||||||||
20,427 | |||||||||||
Consumer Staples (3.8%): | |||||||||||
Lamb Weston Holdings, Inc. | 20,950 | 1,339 | |||||||||
Performance Food Group Co. (a) | 40,945 | 1,193 | |||||||||
Post Holdings, Inc. (a) | 14,132 | 1,238 | |||||||||
The Kroger Co. | 64,950 | 2,199 | |||||||||
Tyson Foods, Inc., Class A | 28,461 | 1,700 | |||||||||
7,669 | |||||||||||
Energy (4.2%): | |||||||||||
Cabot Oil & Gas Corp. | 60,368 | 1,037 | |||||||||
Diamondback Energy, Inc. | 34,260 | 1,433 | |||||||||
EOG Resources, Inc. | 19,469 | 986 | |||||||||
Hess Corp. | 28,125 | 1,457 | |||||||||
National Oilwell Varco, Inc. | 73,485 | 900 | |||||||||
Noble Energy, Inc. | 110,710 | 992 | |||||||||
Pioneer Natural Resources Co. | 18,490 | 1,807 | |||||||||
8,612 | |||||||||||
Financials (16.4%): | |||||||||||
Ally Financial, Inc. | 27,105 | 537 | |||||||||
American Financial Group, Inc. | 19,202 | 1,219 | |||||||||
Arch Capital Group Ltd. (a) | 36,200 | 1,037 | |||||||||
Arthur J. Gallagher & Co. | 26,700 | 2,603 | |||||||||
Assurant, Inc. | 15,725 | 1,624 | |||||||||
Blackstone Mortgage Trust, Inc., Class A (b) | 44,690 | 1,077 | |||||||||
Capital One Financial Corp. | 20,200 | 1,265 |
See notes to financial statements.
45
Victory Portfolios Victory Integrity Mid-Cap Value Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
CIT Group, Inc. | 45,825 | $ | 950 | ||||||||
Everest Re Group Ltd. | 9,135 | 1,884 | |||||||||
Fidelity National Financial, Inc. | 47,850 | 1,467 | |||||||||
Lincoln National Corp. | 28,788 | 1,059 | |||||||||
LPL Financial Holdings, Inc. | 24,975 | 1,958 | |||||||||
M&T Bank Corp. | 18,375 | 1,910 | |||||||||
Northern Trust Corp. | 32,925 | 2,612 | |||||||||
Raymond James Financial, Inc. (b) | 19,665 | 1,354 | |||||||||
Regions Financial Corp. | 222,200 | 2,471 | |||||||||
State Street Corp. | 18,670 | 1,186 | |||||||||
Sterling Bancorp | 89,043 | 1,044 | |||||||||
Voya Financial, Inc. | 53,325 | 2,488 | |||||||||
W.R. Berkley Corp. | 36,400 | 2,085 | |||||||||
Western Alliance Bancorp | 38,060 | 1,441 | |||||||||
33,271 | |||||||||||
Health Care (8.3%): | |||||||||||
Encompass Health Corp. | 32,125 | 1,990 | |||||||||
Hill-Rom Holdings, Inc. | 14,585 | 1,601 | |||||||||
Hologic, Inc. (a) | 37,000 | 2,109 | |||||||||
Laboratory Corp. of America Holdings (a) | 18,720 | 3,109 | |||||||||
McKesson Corp. | 14,559 | 2,234 | |||||||||
Perrigo Co. PLC | 47,150 | 2,606 | |||||||||
Zimmer Biomet Holdings, Inc. | 26,285 | 3,137 | |||||||||
16,786 | |||||||||||
Industrials (17.9%): | |||||||||||
Beacon Roofing Supply, Inc. (a) | 69,400 | 1,830 | |||||||||
Colfax Corp. (a) (b) | 44,158 | 1,232 | |||||||||
Cummins, Inc. | 11,919 | 2,065 | |||||||||
Curtiss-Wright Corp. | 11,632 | 1,039 | |||||||||
Delta Air Lines, Inc. | 30,850 | 865 | |||||||||
Fortune Brands Home & Security, Inc. | 20,188 | 1,291 | |||||||||
ITT, Inc. | 28,927 | 1,699 | |||||||||
J.B. Hunt Transport Services, Inc. (b) | 9,124 | 1,098 | |||||||||
Kansas City Southern | 8,521 | 1,272 | |||||||||
Knight-Swift Transportation Holdings, Inc. (b) | 44,850 | 1,871 | |||||||||
ManpowerGroup, Inc. | 17,946 | 1,234 | |||||||||
Old Dominion Freight Line, Inc. | 12,890 | 2,186 | |||||||||
Oshkosh Corp. | 25,340 | 1,815 | |||||||||
Owens Corning, Inc. | 38,261 | 2,133 | |||||||||
Parker-Hannifin Corp. | 9,125 | 1,672 | |||||||||
Quanta Services, Inc. | 39,935 | 1,567 | |||||||||
Regal Beloit Corp. | 12,763 | 1,114 | |||||||||
Republic Services, Inc. | 27,960 | 2,294 | |||||||||
Sensata Technologies Holding PLC (a) | 40,059 | 1,491 | |||||||||
Southwest Airlines Co. | 18,082 | 618 | |||||||||
Spirit AeroSystems Holdings, Inc., Class A (b) | 16,721 | 400 | |||||||||
Stanley Black & Decker, Inc. | 16,480 | 2,297 | |||||||||
Trane Technologies PLC | 17,405 | 1,549 | |||||||||
Westinghouse Air Brake Technologies Corp. | 28,500 | 1,641 | |||||||||
36,273 |
See notes to financial statements.
46
Victory Portfolios Victory Integrity Mid-Cap Value Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Information Technology (11.5%): | |||||||||||
Amphenol Corp., Class A | 10,443 | $ | 1,001 | ||||||||
Arrow Electronics, Inc. (a) | 25,800 | 1,772 | |||||||||
Corning, Inc. | 56,646 | 1,467 | |||||||||
Flex Ltd. (a) | 167,118 | 1,713 | |||||||||
Jabil, Inc. | 39,930 | 1,281 | |||||||||
Juniper Networks, Inc. | 61,129 | 1,397 | |||||||||
Leidos Holdings, Inc. | 14,594 | 1,367 | |||||||||
Microchip Technology, Inc. | 21,950 | 2,311 | |||||||||
MKS Instruments, Inc. | 13,900 | 1,574 | |||||||||
NCR Corp. (a) | 50,826 | 880 | |||||||||
NortonLifeLock, Inc. | 45,992 | 912 | |||||||||
Nuance Communications, Inc. (a) | 94,400 | 2,389 | |||||||||
ON Semiconductor Corp. (a) | 113,977 | 2,259 | |||||||||
Skyworks Solutions, Inc. | 12,715 | 1,626 | |||||||||
Western Digital Corp. | 33,790 | 1,492 | |||||||||
23,441 | |||||||||||
Materials (7.0%): | |||||||||||
Albemarle Corp. (b) | 23,350 | 1,804 | |||||||||
FMC Corp. | 14,810 | 1,475 | |||||||||
Freeport-McMoRan, Inc. | 156,466 | 1,811 | |||||||||
Huntsman Corp. | 89,500 | 1,608 | |||||||||
Martin Marietta Materials, Inc. (b) | 6,433 | 1,329 | |||||||||
Reliance Steel & Aluminum Co. | 13,508 | 1,282 | |||||||||
Steel Dynamics, Inc. | 59,215 | 1,545 | |||||||||
Westlake Chemical Corp. | 33,160 | 1,779 | |||||||||
Westrock Co. | 53,100 | 1,501 | |||||||||
14,134 | |||||||||||
Real Estate (10.6%): | |||||||||||
Americold Realty Trust | 39,500 | 1,434 | |||||||||
Apartment Investment & Management Co. | 60,100 | 2,262 | |||||||||
Camden Property Trust | 17,928 | 1,635 | |||||||||
Duke Realty Corp. | 62,800 | 2,222 | |||||||||
Essex Property Trust, Inc. | 7,808 | 1,789 | |||||||||
Healthpeak Properties, Inc. | 82,900 | 2,286 | |||||||||
Host Hotels & Resorts, Inc. | 155,630 | 1,679 | |||||||||
Medical Properties Trust, Inc. | 115,800 | 2,177 | |||||||||
Realty Income Corp. | 23,938 | 1,424 | |||||||||
STORE Capital Corp. | 86,750 | 2,066 | |||||||||
Weyerhaeuser Co. | 99,882 | 2,243 | |||||||||
21,217 | |||||||||||
Utilities (8.0%): | |||||||||||
CenterPoint Energy, Inc. | 95,700 | 1,787 | |||||||||
DTE Energy Co. | 23,000 | 2,472 | |||||||||
Edison International | 29,025 | 1,576 | |||||||||
Evergy, Inc. | 36,225 | 2,148 | |||||||||
FirstEnergy Corp. | 59,575 | 2,311 | |||||||||
Pinnacle West Capital Corp. | 18,870 | 1,383 |
See notes to financial statements.
47
Victory Portfolios Victory Integrity Mid-Cap Value Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
PPL Corp. | 54,535 | $ | 1,409 | ||||||||
UGI Corp. | 44,946 | 1,429 | |||||||||
Vistra Corp. | 34,320 | 639 | |||||||||
Xcel Energy, Inc. | 18,021 | 1,126 | |||||||||
16,280 | |||||||||||
Total Common Stocks (Cost $211,473) | 201,314 | ||||||||||
Collateral for Securities Loaned^ (2.8%) | |||||||||||
BlackRock Liquidity Funds TempFund Portfolio, Institutional Class, 0.28% (c) | 93,786 | 94 | |||||||||
Fidelity Investments Money Market Government Portfolio, Class I, 0.09% (c) | 2,838,589 | 2,839 | |||||||||
Goldman Sachs Financial Square Prime Obligations Fund, Institutional Class, 0.30% (c) | 652,184 | 652 | |||||||||
JPMorgan Prime Money Market Fund, Capital Class, 0.43% (c) | 373,198 | 373 | |||||||||
Morgan Stanley Institutional Liquidity Prime Portfolio, Institutional Class, 0.41% (c) | 1,677,972 | 1,678 | |||||||||
Total Collateral for Securities Loaned (Cost $5,636) | 5,636 | ||||||||||
Total Investments (Cost $217,109) — 102.2% | 206,950 | ||||||||||
Liabilities in excess of other assets — (2.2)% | (4,477 | ) | |||||||||
NET ASSETS — 100.00% | $ | 202,473 |
^ Purchased with cash collateral from securities on loan.
(a) Non-income producing security.
(b) All or a portion of this security is on loan.
(c) Rate disclosed is the daily yield on June 30, 2020.
PLC — Public Limited Company
See notes to financial statements.
48
Victory Portfolios Victory Integrity Small-Cap Value Fund | Schedule of Portfolio Investments June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Common Stocks (99.7%) | |||||||||||
Communication Services (1.9%): | |||||||||||
Gray Television, Inc. (a) | 791,200 | $ | 11,037 | ||||||||
Lions Gate Entertainment Corp., Class B (a) | 1,127,100 | 7,698 | |||||||||
TEGNA, Inc. | 608,600 | 6,780 | |||||||||
The Marcus Corp. | 415,286 | 5,511 | |||||||||
31,026 | |||||||||||
Consumer Discretionary (12.5%): | |||||||||||
American Eagle Outfitters, Inc. (b) | 971,200 | 10,585 | |||||||||
Asbury Automotive Group, Inc. (a) (b) | 119,500 | 9,241 | |||||||||
Bloomin' Brands, Inc. (b) | 603,200 | 6,430 | |||||||||
Brunswick Corp. | 287,500 | 18,403 | |||||||||
Century Communities, Inc. (a) | 407,000 | 12,479 | |||||||||
Crocs, Inc. (a) | 276,600 | 10,184 | |||||||||
Dana, Inc. | 544,600 | 6,639 | |||||||||
Dick's Sporting Goods, Inc. | 142,100 | 5,863 | |||||||||
Foot Locker, Inc. | 151,300 | 4,412 | |||||||||
G-III Apparel Group Ltd. (a) (b) | 386,127 | 5,132 | |||||||||
Guess?, Inc. (b) | 452,900 | 4,380 | |||||||||
Helen of Troy Ltd. (a) (b) | 43,600 | 8,221 | |||||||||
Jack in the Box, Inc. (b) | 201,400 | 14,922 | |||||||||
KB Home | 191,500 | 5,875 | |||||||||
Kontoor Brands, Inc. (b) | 332,000 | 5,913 | |||||||||
Marriott Vacations Worldwide Corp. | 120,223 | 9,884 | |||||||||
Nordstrom, Inc. (b) | 299,000 | 4,632 | |||||||||
Sally Beauty Holdings, Inc. (a) (b) | 509,900 | 6,389 | |||||||||
Shoe Carnival, Inc. (b) | 190,500 | 5,576 | |||||||||
The Cheesecake Factory, Inc. (b) | 294,000 | 6,738 | |||||||||
TRI Pointe Group, Inc. (a) | 787,900 | 11,574 | |||||||||
Visteon Corp. (a) | 75,400 | 5,165 | |||||||||
Wolverine World Wide, Inc. | 425,100 | 10,122 | |||||||||
WW International, Inc. (a) | 250,500 | 6,358 | |||||||||
195,117 | |||||||||||
Consumer Staples (2.8%): | |||||||||||
BJ's Wholesale Club Holdings, Inc. (a) | 363,600 | 13,551 | |||||||||
Performance Food Group Co. (a) | 323,200 | 9,418 | |||||||||
Sanderson Farms, Inc. (b) | 95,600 | 11,079 | |||||||||
The Simply Good Foods Co. (a) | 461,300 | 8,571 | |||||||||
42,619 | |||||||||||
Energy (3.9%): | |||||||||||
EQT Corp. | 599,900 | 7,139 | |||||||||
Magnolia Oil & Gas Corp., Class A (a) | 1,689,200 | 10,237 | |||||||||
Noble Energy, Inc. | 1,227,500 | 10,998 | |||||||||
Ovintiv, Inc. (b) | 836,000 | 7,984 | |||||||||
PDC Energy, Inc. (a) | 703,000 | 8,745 | |||||||||
ProPetro Holding Corp. (a) | 1,385,000 | 7,119 | |||||||||
World Fuel Services Corp. | 315,000 | 8,114 | |||||||||
60,336 |
See notes to financial statements.
49
Victory Portfolios Victory Integrity Small-Cap Value Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Financials (24.6%): | |||||||||||
American Equity Investment Life Holding Co. | 386,800 | $ | 9,558 | ||||||||
Ameris Bancorp | 391,000 | 9,224 | |||||||||
Banc of California, Inc. | 614,967 | 6,660 | |||||||||
BancorpSouth Bank | 634,000 | 14,417 | |||||||||
Banner Corp. | 323,200 | 12,282 | |||||||||
Blackstone Mortgage Trust, Inc., Class A (b) | 470,000 | 11,323 | |||||||||
Cathay General Bancorp (b) | 480,000 | 12,624 | |||||||||
CIT Group, Inc. | 626,000 | 12,977 | |||||||||
Essent Group Ltd. | 132,000 | 4,788 | |||||||||
First Bancorp, Inc., Class A | 229,885 | 5,766 | |||||||||
First Commonwealth Financial Corp. | 942,500 | 7,804 | |||||||||
First Financial Bancorp | 345,740 | 4,802 | |||||||||
First Merchants Corp. | 460,300 | 12,690 | |||||||||
Hancock Whitney Corp. | 344,403 | 7,301 | |||||||||
Heritage Financial Corp. | 350,672 | 7,013 | |||||||||
Independent Bank Corp. | 189,900 | 12,740 | |||||||||
Investors Bancorp, Inc. (b) | 923,600 | 7,851 | |||||||||
James River Group Holdings Ltd. | 220,200 | 9,909 | |||||||||
Kemper Corp. (b) | 165,759 | 12,021 | |||||||||
Kinsale Capital Group, Inc. | 80,900 | 12,556 | |||||||||
Ladder Capital Corp. | 1,018,500 | 8,250 | |||||||||
MGIC Investment Corp. | 1,101,400 | 9,020 | |||||||||
PacWest Bancorp (b) | 417,200 | 8,223 | |||||||||
Piper Sandler Cos. | 159,473 | 9,434 | |||||||||
Primerica, Inc. | 66,300 | 7,731 | |||||||||
Renasant Corp. | 504,700 | 12,567 | |||||||||
RLI Corp. (b) | 154,500 | 12,684 | |||||||||
Starwood Property Trust, Inc. | 390,000 | 5,834 | |||||||||
Sterling Bancorp | 891,981 | 10,454 | |||||||||
Stewart Information Services Corp. | 270,400 | 8,791 | |||||||||
Stifel Financial Corp. | 351,000 | 16,648 | |||||||||
The Hanover Insurance Group, Inc. | 119,600 | 12,119 | |||||||||
United Bankshares, Inc. (b) | 288,100 | 7,969 | |||||||||
United Community Banks, Inc. | 677,300 | 13,627 | |||||||||
Veritex Holdings, Inc. | 741,000 | 13,116 | |||||||||
Washington Federal, Inc. (b) | 255,700 | 6,863 | |||||||||
WesBanco, Inc. | 501,000 | 10,175 | |||||||||
Western Alliance Bancorp | 494,000 | 18,707 | |||||||||
386,518 | |||||||||||
Health Care (3.6%): | |||||||||||
CONMED Corp. | 107,300 | 7,725 | |||||||||
Magellan Health, Inc. (a) | 225,700 | 16,471 | |||||||||
Patterson Cos., Inc. | 300,800 | 6,618 | |||||||||
Select Medical Holdings Corp. (a) | 819,400 | 12,070 | |||||||||
Syneos Health, Inc. (a) | 150,400 | 8,761 | |||||||||
Tenet Healthcare Corp. (a) | 220,000 | 3,984 | |||||||||
55,629 |
See notes to financial statements.
50
Victory Portfolios Victory Integrity Small-Cap Value Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Industrials (19.4%): | |||||||||||
AAR Corp. | 376,400 | $ | 7,780 | ||||||||
ACCO Brands Corp. | 861,600 | 6,117 | |||||||||
ACCO Brands Corp. | 201,700 | 1,432 | |||||||||
Aerojet Rocketdyne Holdings, Inc. (a) (b) | 264,200 | 10,474 | |||||||||
Altra Industrial Motion Corp. | 375,400 | 11,960 | |||||||||
AZZ, Inc. | 386,800 | 13,275 | |||||||||
Beacon Roofing Supply, Inc. (a) | 585,300 | 15,434 | |||||||||
Builders FirstSource, Inc. (a) | 534,909 | 11,073 | |||||||||
Chart Industries, Inc. (a) | 211,200 | 10,241 | |||||||||
CIRCOR International, Inc. (a) | 174,400 | 4,444 | |||||||||
Clean Harbors, Inc. (a) | 196,900 | 11,810 | |||||||||
Colfax Corp. (a) | 335,100 | 9,349 | |||||||||
Crane Co. | 136,000 | 8,087 | |||||||||
Ducommun, Inc. (a) | 138,700 | 4,836 | |||||||||
EMCOR Group, Inc. | 247,800 | 16,390 | |||||||||
GMS, Inc. (a) | 183,000 | 4,500 | |||||||||
Hub Group, Inc., Class A (a) | 194,600 | 9,314 | |||||||||
ITT, Inc. | 161,900 | 9,510 | |||||||||
Kennametal, Inc. | 440,400 | 12,644 | |||||||||
Korn Ferry | 214,200 | 6,582 | |||||||||
Meritor, Inc. (a) | 763,000 | 15,107 | |||||||||
Oshkosh Corp. | 77,193 | 5,529 | |||||||||
Pitney Bowes, Inc. (b) | 1,583,000 | 4,116 | |||||||||
Regal Beloit Corp. | 99,300 | 8,671 | |||||||||
Ryder System, Inc. | 136,200 | 5,109 | |||||||||
Saia, Inc. (a) (b) | 136,800 | 15,209 | |||||||||
SkyWest, Inc. | 244,585 | 7,978 | |||||||||
Spirit AeroSystems Holdings, Inc., Class A | 133,000 | 3,184 | |||||||||
Spirit Airlines, Inc. (a) (b) | 210,200 | 3,742 | |||||||||
Terex Corp. | 302,500 | 5,678 | |||||||||
The Timken Co. | 225,000 | 10,235 | |||||||||
Trinity Industries, Inc. (b) | 298,673 | 6,359 | |||||||||
Tutor Perini Corp. (a) | 860,200 | 10,477 | |||||||||
Wabash National Corp. | 392,000 | 4,163 | |||||||||
Werner Enterprises, Inc. | 321,800 | 14,008 | |||||||||
304,817 | |||||||||||
Information Technology (10.4%): | |||||||||||
Belden, Inc. | 241,400 | 7,858 | |||||||||
Cohu, Inc. | 543,600 | 9,426 | |||||||||
Conduent, Inc. (a) | 2,045,100 | 4,888 | |||||||||
CTS Corp. | 374,000 | 7,495 | |||||||||
Diebold Nixdorf, Inc. (a) (b) | 1,435,000 | 8,696 | |||||||||
Diodes, Inc. (a) (b) | 237,400 | 12,036 | |||||||||
FormFactor, Inc. (a) | 324,300 | 9,512 | |||||||||
Infinera Corp. (a) (b) | 1,944,000 | 11,509 | |||||||||
KBR, Inc. | 584,800 | 13,187 | |||||||||
Knowles Corp. (a) | 761,800 | 11,625 | |||||||||
MACOM Technology Solutions Holdings, Inc. (a) | 280,900 | 9,649 | |||||||||
Perspecta, Inc. | 500,000 | 11,615 |
See notes to financial statements.
51
Victory Portfolios Victory Integrity Small-Cap Value Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Plexus Corp. (a) | 115,500 | $ | 8,150 | ||||||||
Sanmina Corp. (a) | 119,100 | 2,982 | |||||||||
TTM Technologies, Inc. (a) (b) | 1,086,700 | 12,888 | |||||||||
Verint Systems, Inc. (a) | 218,400 | 9,867 | |||||||||
Viavi Solutions, Inc. (a) | 810,000 | 10,319 | |||||||||
161,702 | |||||||||||
Materials (6.3%): | |||||||||||
Alcoa Corp. (a) | 937,700 | 10,540 | |||||||||
Avient Corp. | 530,900 | 13,926 | |||||||||
Cleveland-Cliffs, Inc. (b) | 1,798,600 | 9,928 | |||||||||
Element Solutions, Inc. (a) | 704,000 | 7,638 | |||||||||
Forterra, Inc. (a) (b) | 635,500 | 7,092 | |||||||||
Kraton Corp. (a) | 511,000 | 8,830 | |||||||||
Louisiana-Pacific Corp. (b) | 553,500 | 14,197 | |||||||||
O-I Glass, Inc. (b) | 994,800 | 8,933 | |||||||||
Summit Materials, Inc., Class A (a) | 601,100 | 9,666 | |||||||||
Tronox Holdings PLC, Class A (b) | 1,107,000 | 7,993 | |||||||||
98,743 | |||||||||||
Real Estate (9.4%): | |||||||||||
Alexander & Baldwin, Inc. | 746,000 | 9,094 | |||||||||
CareTrust REIT, Inc. | 539,200 | 9,253 | |||||||||
City Office REIT, Inc. | 714,400 | 7,187 | |||||||||
DiamondRock Hospitality Co. | 1,672,978 | 9,252 | |||||||||
Essential Properties Realty Trust, Inc. | 750,000 | 11,130 | |||||||||
First Industrial Realty Trust, Inc. | 245,500 | 9,437 | |||||||||
Kite Realty Group Trust (b) | 755,600 | 8,720 | |||||||||
Lexington Realty Trust | 1,401,000 | 14,780 | |||||||||
Mack Cali Realty Corp. | 871,200 | 13,321 | |||||||||
Physicians Realty Trust | 892,300 | 15,632 | |||||||||
SITE Centers Corp. | 1,373,200 | 11,123 | |||||||||
STAG Industrial, Inc. | 570,400 | 16,723 | |||||||||
Summit Hotel Properties, Inc. | 1,201,000 | 7,122 | |||||||||
Sunstone Hotel Investors, Inc. | 744,246 | 6,066 | |||||||||
148,840 | |||||||||||
Utilities (4.9%): | |||||||||||
ALLETE, Inc. | 176,400 | 9,633 | |||||||||
Black Hills Corp. | 205,600 | 11,649 | |||||||||
New Jersey Resources Corp. (b) | 264,000 | 8,620 | |||||||||
NorthWestern Corp. (b) | 190,000 | 10,359 | |||||||||
ONE Gas, Inc. | 90,700 | 6,988 | |||||||||
PNM Resources, Inc. (b) | 378,000 | 14,531 | |||||||||
Portland General Electric Co. | 135,000 | 5,644 | |||||||||
Spire, Inc. | 139,100 | 9,140 | |||||||||
76,564 | |||||||||||
Total Common Stocks (Cost $1,590,857) | 1,561,911 |
See notes to financial statements.
52
Victory Portfolios Victory Integrity Small-Cap Value Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Collateral for Securities Loaned^ (6.2%) | |||||||||||
BlackRock Liquidity Funds TempFund Portfolio, Institutional Class, 0.28% (c) | 1,618,181 | $ | 1,618 | ||||||||
Fidelity Investments Money Market Government Portfolio, Class I, 0.09% (c) | 48,975,358 | 48,975 | |||||||||
Goldman Sachs Financial Square Prime Obligations Fund, Institutional Class, 0.30% (c) | 11,252,796 | 11,253 | |||||||||
JPMorgan Prime Money Market Fund, Capital Class, 0.43% (c) | 6,439,172 | 6,439 | |||||||||
Morgan Stanley Institutional Liquidity Prime Portfolio, Institutional Class, 0.41% (c) | 28,951,774 | 28,952 | |||||||||
Total Collateral for Securities Loaned (Cost $97,237) | 97,237 | ||||||||||
Total Investments (Cost $1,688,094) — 105.9% | 1,659,148 | ||||||||||
Liabilities in excess of other assets — (5.9)% | (91,846 | ) | |||||||||
NET ASSETS — 100.00% | $ | 1,567,302 |
^ Purchased with cash collateral from securities on loan.
(a) Non-income producing security.
(b) All or a portion of this security is on loan.
(c) Rate disclosed is the daily yield on June 30, 2020.
PLC — Public Limited Company
REIT — Real Estate Investment Trust
See notes to financial statements.
53
Victory Portfolios Victory Integrity Small/Mid-Cap Value Fund | Schedule of Portfolio Investments June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Common Stocks (99.2%) | |||||||||||
Communication Services (1.6%): | |||||||||||
Cinemark Holdings, Inc. | 31,742 | $ | 367 | ||||||||
Lions Gate Entertainment Corp., Class B (a) | 86,096 | 588 | |||||||||
Nexstar Media Group, Inc., Class A | 11,498 | 962 | |||||||||
1,917 | |||||||||||
Consumer Discretionary (12.0%): | |||||||||||
American Eagle Outfitters, Inc. | 66,273 | 721 | |||||||||
Asbury Automotive Group, Inc. (a) | 5,958 | 461 | |||||||||
Brunswick Corp. | 22,701 | 1,453 | |||||||||
Crocs, Inc. (a) | 16,579 | 610 | |||||||||
Darden Restaurants, Inc. | 11,124 | 843 | |||||||||
Dick's Sporting Goods, Inc. | 9,955 | 411 | |||||||||
Foot Locker, Inc. | 10,458 | 305 | |||||||||
G-III Apparel Group Ltd. (a) | 22,914 | 305 | |||||||||
Jack in the Box, Inc. | 11,750 | 871 | |||||||||
KB Home | 10,325 | 317 | |||||||||
Kontoor Brands, Inc. | 23,270 | 414 | |||||||||
Lear Corp. | 5,077 | 553 | |||||||||
Newell Brands, Inc. (b) | 57,981 | 921 | |||||||||
Nordstrom, Inc. (b) | 12,191 | 189 | |||||||||
PulteGroup, Inc. | 32,533 | 1,107 | |||||||||
Ralph Lauren Corp. | 11,904 | 863 | |||||||||
Sally Beauty Holdings, Inc. (a) (b) | 32,535 | 408 | |||||||||
TRI Pointe Group, Inc. (a) | 46,509 | 683 | |||||||||
Visteon Corp. (a) (b) | 6,248 | 428 | |||||||||
Wolverine World Wide, Inc. | 28,628 | 682 | |||||||||
WW International, Inc. (a) | 17,373 | 441 | |||||||||
Wyndham Destinations, Inc. | 29,252 | 824 | |||||||||
13,810 | |||||||||||
Consumer Staples (3.6%): | |||||||||||
BJ's Wholesale Club Holdings, Inc. (a) | 18,686 | 696 | |||||||||
Grocery Outlet Holding Corp. (a) | 20,778 | 848 | |||||||||
Lamb Weston Holdings, Inc. | 16,672 | 1,066 | |||||||||
Performance Food Group Co. (a) | 23,293 | 679 | |||||||||
Post Holdings, Inc. (a) | 11,002 | 964 | |||||||||
4,253 | |||||||||||
Energy (3.1%): | |||||||||||
Diamondback Energy, Inc. | 16,036 | 671 | |||||||||
EQT Corp. | 43,261 | 515 | |||||||||
National Oilwell Varco, Inc. | 42,145 | 516 | |||||||||
Noble Energy, Inc. | 37,989 | 340 | |||||||||
Parsley Energy, Inc., Class A | 74,854 | 800 | |||||||||
WPX Energy, Inc. (a) | 120,131 | 766 | |||||||||
3,608 |
See notes to financial statements.
54
Victory Portfolios Victory Integrity Small/Mid-Cap Value Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Financials (21.1%): | |||||||||||
AGNC Investment Corp. | 106,459 | $ | 1,373 | ||||||||
Ally Financial, Inc. | 15,439 | 306 | |||||||||
American Financial Group, Inc. | 10,661 | 677 | |||||||||
Arch Capital Group Ltd. (a) | 17,144 | 491 | |||||||||
Assurant, Inc. (b) | 10,564 | 1,091 | |||||||||
Blackstone Mortgage Trust, Inc., Class A (b) | 27,522 | 663 | |||||||||
CIT Group, Inc. | 46,631 | 967 | |||||||||
Discover Financial Services | 16,597 | 831 | |||||||||
East West Bancorp, Inc. | 30,972 | 1,122 | |||||||||
Everest Re Group Ltd. | 3,537 | 729 | |||||||||
First American Financial Corp. | 18,850 | 905 | |||||||||
Hancock Whitney Corp. | 26,795 | 568 | |||||||||
Independent Bank Corp. | 10,228 | 686 | |||||||||
Investors Bancorp, Inc. | 51,928 | 441 | |||||||||
Kemper Corp. | 15,318 | 1,111 | |||||||||
Kinsale Capital Group, Inc. | 4,531 | 703 | |||||||||
Lincoln National Corp. | 7,607 | 280 | |||||||||
LPL Financial Holdings, Inc. | 15,557 | 1,219 | |||||||||
MGIC Investment Corp. | 72,856 | 597 | |||||||||
PacWest Bancorp | 29,723 | 586 | |||||||||
People's United Financial, Inc. | 80,125 | 927 | |||||||||
Primerica, Inc. | 8,643 | 1,008 | |||||||||
Sterling Bancorp | 74,908 | 878 | |||||||||
Stifel Financial Corp. | 19,159 | 909 | |||||||||
The Hanover Insurance Group, Inc. | 9,412 | 954 | |||||||||
Umpqua Holdings Corp. | 94,019 | 1,000 | |||||||||
Voya Financial, Inc. | 32,556 | 1,519 | |||||||||
WesBanco, Inc. | 34,799 | 707 | |||||||||
Western Alliance Bancorp | 34,765 | 1,317 | |||||||||
24,565 | |||||||||||
Health Care (5.7%): | |||||||||||
Encompass Health Corp. | 16,674 | 1,033 | |||||||||
Hill-Rom Holdings, Inc. | 8,745 | 960 | |||||||||
Hologic, Inc. (a) | 19,836 | 1,131 | |||||||||
Magellan Health, Inc. (a) | 14,085 | 1,028 | |||||||||
Perrigo Co. PLC | 19,835 | 1,096 | |||||||||
Select Medical Holdings Corp. (a) | 48,629 | 716 | |||||||||
STERIS PLC | 4,509 | 692 | |||||||||
6,656 | |||||||||||
Industrials (19.4%): | |||||||||||
Aerojet Rocketdyne Holdings, Inc. (a) (b) | 11,003 | 436 | |||||||||
Alaska Air Group, Inc. | 9,660 | 350 | |||||||||
Altra Industrial Motion Corp. | 23,814 | 759 | |||||||||
Beacon Roofing Supply, Inc. (a) | 41,386 | 1,091 | |||||||||
Builders FirstSource, Inc. (a) | 37,195 | 770 | |||||||||
Chart Industries, Inc. (a) | 15,295 | 742 | |||||||||
CIRCOR International, Inc. (a) | 13,089 | 334 | |||||||||
Clean Harbors, Inc. (a) | 14,416 | 865 | |||||||||
Colfax Corp. (a) | 23,616 | 659 | |||||||||
Crane Co. | 10,201 | 607 | |||||||||
Curtiss-Wright Corp. | 8,031 | 717 |
See notes to financial statements.
55
Victory Portfolios Victory Integrity Small/Mid-Cap Value Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
EMCOR Group, Inc. | 16,522 | $ | 1,093 | ||||||||
Fortune Brands Home & Security, Inc. | 11,900 | 761 | |||||||||
ITT, Inc. | 17,642 | 1,035 | |||||||||
Knight-Swift Transportation Holdings, Inc. (b) | 34,645 | 1,444 | |||||||||
Korn Ferry | 16,120 | 495 | |||||||||
ManpowerGroup, Inc. | 8,505 | 585 | |||||||||
Meritor, Inc. (a) | 50,839 | 1,006 | |||||||||
Oshkosh Corp. | 13,750 | 985 | |||||||||
Pitney Bowes, Inc. | 133,565 | 347 | |||||||||
Quanta Services, Inc. | 16,905 | 663 | |||||||||
Regal Beloit Corp. | 7,384 | 645 | |||||||||
Ryder System, Inc. | 7,958 | 299 | |||||||||
Saia, Inc. (a) | 8,469 | 942 | |||||||||
Sensata Technologies Holding PLC (a) | 24,747 | 921 | |||||||||
SkyWest, Inc. | 18,644 | 608 | |||||||||
Spirit AeroSystems Holdings, Inc., Class A | 9,755 | 234 | |||||||||
Terex Corp. | 16,443 | 309 | |||||||||
The Timken Co. | 20,678 | 941 | |||||||||
Trinity Industries, Inc. (b) | 21,520 | 458 | |||||||||
Tutor Perini Corp. (a) | 54,252 | 661 | |||||||||
Westinghouse Air Brake Technologies Corp. | 14,944 | 860 | |||||||||
22,622 | |||||||||||
Information Technology (10.7%): | |||||||||||
Arrow Electronics, Inc. (a) | 15,576 | 1,069 | |||||||||
Belden, Inc. | 22,268 | 725 | |||||||||
Conduent, Inc. (a) | 149,652 | 358 | |||||||||
Diodes, Inc. (a) | 13,988 | 709 | |||||||||
Flex Ltd. (a) | 98,348 | 1,008 | |||||||||
Infinera Corp. (a) | 67,842 | 402 | |||||||||
Jabil, Inc. | 18,348 | 589 | |||||||||
MACOM Technology Solutions Holdings, Inc. (a) | 21,623 | 743 | |||||||||
MKS Instruments, Inc. | 8,363 | 947 | |||||||||
NCR Corp. (a) | 28,264 | 490 | |||||||||
Nuance Communications, Inc. (a) | 54,990 | 1,392 | |||||||||
ON Semiconductor Corp. (a) | 80,730 | 1,600 | |||||||||
Perspecta, Inc. | 24,853 | 577 | |||||||||
Verint Systems, Inc. (a) | 19,323 | 873 | |||||||||
Viavi Solutions, Inc. (a) | 66,526 | 847 | |||||||||
12,329 | |||||||||||
Materials (6.7%): | |||||||||||
Albemarle Corp. (b) | 8,865 | 684 | |||||||||
Alcoa Corp. (a) | 69,570 | 782 | |||||||||
Graphic Packaging Holding Co. | 58,172 | 814 | |||||||||
Huntsman Corp. | 52,333 | 940 | |||||||||
Louisiana-Pacific Corp. | 36,590 | 939 | |||||||||
O-I Glass, Inc. | 70,100 | 629 | |||||||||
Reliance Steel & Aluminum Co. | 4,228 | 401 | |||||||||
Steel Dynamics, Inc. | 36,751 | 959 | |||||||||
Summit Materials, Inc., Class A (a) | 41,645 | 670 | |||||||||
Westlake Chemical Corp. | 18,872 | 1,013 | |||||||||
7,831 |
See notes to financial statements.
56
Victory Portfolios Victory Integrity Small/Mid-Cap Value Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Real Estate (11.7%): | |||||||||||
Americold Realty Trust | 26,766 | $ | 972 | ||||||||
Apartment Investment & Management Co. | 36,587 | 1,377 | |||||||||
Camden Property Trust | 12,372 | 1,129 | |||||||||
DiamondRock Hospitality Co. | 125,344 | 693 | |||||||||
Duke Realty Corp. | 24,395 | 863 | |||||||||
EPR Properties | 7,598 | 252 | |||||||||
First Industrial Realty Trust, Inc. | 24,407 | 938 | |||||||||
Gaming and Leisure Properties, Inc. | 17,823 | 617 | |||||||||
Highwoods Properties, Inc. | 41,111 | 1,535 | |||||||||
Mack Cali Realty Corp. | 49,000 | 749 | |||||||||
Medical Properties Trust, Inc. | 81,115 | 1,525 | |||||||||
SITE Centers Corp. | 112,648 | 912 | |||||||||
STORE Capital Corp. (b) | 55,389 | 1,319 | |||||||||
VICI Properties, Inc. | 28,368 | 573 | |||||||||
13,454 | |||||||||||
Utilities (3.6%): | |||||||||||
ALLETE, Inc. | 11,707 | 639 | |||||||||
Black Hills Corp. | 10,635 | 603 | |||||||||
Pinnacle West Capital Corp. | 11,899 | 872 | |||||||||
PNM Resources, Inc. | 20,501 | 788 | |||||||||
UGI Corp. | 27,798 | 884 | |||||||||
Vistra Corp. | 18,339 | 341 | |||||||||
4,127 | |||||||||||
Total Common Stocks (Cost $121,528) | 115,172 | ||||||||||
Exchange-Traded Funds (0.3%) | |||||||||||
iShares Russell 2000 Value Index Fund (b) | 3,791 | 369 | |||||||||
Total Exchange-Traded Funds (Cost $483) | 369 | ||||||||||
Collateral for Securities Loaned^ (2.6%) | |||||||||||
BlackRock Liquidity Funds TempFund Portfolio, Institutional Class, 0.28% (c) | 50,400 | 50 | |||||||||
Fidelity Investments Money Market Government Portfolio, Class I, 0.09% (c) | 1,528,544 | 1,529 | |||||||||
Goldman Sachs Financial Square Prime Obligations Fund, Institutional Class, 0.30% (c) | 351,205 | 351 | |||||||||
JPMorgan Prime Money Market Fund, Capital Class, 0.43% (c) | 200,970 | 201 | |||||||||
Morgan Stanley Institutional Liquidity Prime Portfolio, Institutional Class, 0.41% (c) | 903,598 | 904 | |||||||||
Total Collateral for Securities Loaned (Cost $3,035) | 3,035 | ||||||||||
Total Investments (Cost $125,046) — 102.1% | 118,576 | ||||||||||
Liabilities in excess of other assets — (2.1)% | (2,479 | ) | |||||||||
NET ASSETS — 100.00% | $ | 116,097 |
^ Purchased with cash collateral from securities on loan.
(a) Non-income producing security.
(b) All or a portion of this security is on loan.
(c) Rate disclosed is the daily yield on June 30, 2020.
PLC — Public Limited Company
See notes to financial statements.
57
Victory Portfolios Victory Munder Multi-Cap Fund | Schedule of Portfolio Investments June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Common Stocks (98.1%) | |||||||||||
Communication Services (10.8%): | |||||||||||
Alphabet, Inc., Class A (a) | 10,193 | $ | 14,453 | ||||||||
Charter Communications, Inc., Class A (a) | 6,500 | 3,316 | |||||||||
Comcast Corp., Class A | 54,550 | 2,126 | |||||||||
Facebook, Inc., Class A (a) | 34,600 | 7,857 | |||||||||
Netflix, Inc. (a) | 5,100 | 2,321 | |||||||||
Nexstar Media Group, Inc., Class A | 26,600 | 2,226 | |||||||||
T-Mobile U.S., Inc. (a) | 48,800 | 5,083 | |||||||||
37,382 | |||||||||||
Communications Equipment (1.7%): | |||||||||||
Cisco Systems, Inc. | 57,900 | 2,700 | |||||||||
Lumentum Holdings, Inc. (a) | 39,200 | 3,193 | |||||||||
5,893 | |||||||||||
Consumer Discretionary (13.6%): | |||||||||||
Amazon.com, Inc. (a) | 6,810 | 18,788 | |||||||||
Boyd Gaming Corp. | 187,000 | 3,908 | |||||||||
D.R. Horton, Inc. | 38,100 | 2,113 | |||||||||
Dollar General Corp. | 30,120 | 5,738 | |||||||||
LGI Homes, Inc. (a) | 30,400 | 2,676 | |||||||||
Marriott Vacations Worldwide Corp. | 17,200 | 1,414 | |||||||||
Meritage Homes Corp. (a) | 36,100 | 2,747 | |||||||||
Skechers USA, Inc., Class A (a) | 89,500 | 2,809 | |||||||||
Target Corp. | 20,500 | 2,459 | |||||||||
TopBuild Corp. (a) | 19,800 | 2,253 | |||||||||
Tractor Supply Co. | 18,300 | 2,412 | |||||||||
47,317 | |||||||||||
Consumer Staples (6.7%): | |||||||||||
Kimberly-Clark Corp. | 30,800 | 4,354 | |||||||||
PepsiCo, Inc. | 37,400 | 4,947 | |||||||||
Philip Morris International, Inc. | 46,200 | 3,237 | |||||||||
The Kroger Co. | 129,900 | 4,397 | |||||||||
The Procter & Gamble Co. | 29,600 | 3,539 | |||||||||
Walmart, Inc. | 23,200 | 2,779 | |||||||||
23,253 | |||||||||||
Electronic Equipment, Instruments & Components (0.6%): | |||||||||||
CDW Corp. | 18,800 | 2,184 | |||||||||
Energy (1.7%): | |||||||||||
Chevron Corp. | 19,510 | 1,741 | |||||||||
Phillips 66 | 28,575 | 2,054 | |||||||||
Valero Energy Corp. | 34,100 | 2,006 | |||||||||
5,801 | |||||||||||
Financials (8.2%): | |||||||||||
Ameriprise Financial, Inc. | 32,300 | 4,846 | |||||||||
Citigroup, Inc. | 62,800 | 3,210 | |||||||||
Essent Group Ltd. | 83,255 | 3,020 |
See notes to financial statements.
58
Victory Portfolios Victory Munder Multi-Cap Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Flagstar Bancorp, Inc. | 109,000 | $ | 3,207 | ||||||||
JPMorgan Chase & Co. | 33,600 | 3,160 | |||||||||
NMI Holdings, Inc., Class A (a) | 199,300 | 3,205 | |||||||||
Primerica, Inc. | 44,100 | 5,142 | |||||||||
Western Alliance Bancorp (b) | 66,600 | 2,522 | |||||||||
28,312 | |||||||||||
Health Care (16.7%): | |||||||||||
AbbVie, Inc. | 79,750 | 7,829 | |||||||||
Amgen, Inc. | 13,400 | 3,161 | |||||||||
Bristol-Myers Squibb Co. | 95,800 | 5,633 | |||||||||
Charles River Laboratories International, Inc. (a) | 30,200 | 5,266 | |||||||||
Cigna Corp. | 23,800 | 4,466 | |||||||||
ICON PLC (a) | 26,500 | 4,464 | |||||||||
Medtronic PLC | 15,500 | 1,421 | |||||||||
Merck & Co., Inc. | 73,500 | 5,683 | |||||||||
Pfizer, Inc. | 97,600 | 3,192 | |||||||||
Regeneron Pharmaceuticals, Inc. (a) | 6,000 | 3,742 | |||||||||
Stryker Corp. | 10,900 | 1,964 | |||||||||
Syneos Health, Inc. (a) | 53,000 | 3,087 | |||||||||
UnitedHealth Group, Inc. | 27,225 | 8,030 | |||||||||
57,938 | |||||||||||
Industrials (7.1%): | |||||||||||
Federal Signal Corp. | 113,600 | 3,377 | |||||||||
Kansas City Southern | 22,800 | 3,404 | |||||||||
L3Harris Technologies, Inc. | 21,400 | 3,631 | |||||||||
Lockheed Martin Corp. | 15,900 | 5,802 | |||||||||
Old Dominion Freight Line, Inc. | 12,800 | 2,171 | |||||||||
UFP Industries, Inc. | 76,800 | 3,802 | |||||||||
XPO Logistics, Inc. (a) | 32,900 | 2,542 | |||||||||
24,729 | |||||||||||
IT Services (6.7%): | |||||||||||
Akamai Technologies, Inc. (a) | 21,000 | 2,249 | |||||||||
Booz Allen Hamilton Holding Corp. | 50,900 | 3,960 | |||||||||
EPAM Systems, Inc. (a) | 17,400 | 4,384 | |||||||||
Fiserv, Inc. (a) | 45,000 | 4,392 | |||||||||
Leidos Holdings, Inc. | 35,400 | 3,316 | |||||||||
Mastercard, Inc., Class A | 7,000 | 2,070 | |||||||||
Visa, Inc., Class A (b) | 14,400 | 2,782 | |||||||||
23,153 | |||||||||||
Materials (1.9%): | |||||||||||
Berry Global Group, Inc. (a) | 79,600 | 3,528 | |||||||||
Silgan Holdings, Inc. | 99,500 | 3,223 | |||||||||
6,751 | |||||||||||
Real Estate (1.4%): | |||||||||||
American Tower Corp. | 12,300 | 3,180 | |||||||||
CBRE Group, Inc., Class A (a) | 38,800 | 1,755 | |||||||||
4,935 |
See notes to financial statements.
59
Victory Portfolios Victory Munder Multi-Cap Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Semiconductors & Semiconductor Equipment (4.9%): | |||||||||||
Advanced Micro Devices, Inc. (a) | 38,600 | $ | 2,031 | ||||||||
Broadcom, Inc. | 22,100 | 6,975 | |||||||||
NVIDIA Corp. | 21,500 | 8,168 | |||||||||
17,174 | |||||||||||
Software (10.4%): | |||||||||||
Adobe, Inc. (a) | 12,800 | 5,572 | |||||||||
Microsoft Corp. | 108,460 | 22,072 | |||||||||
Oracle Corp. | 45,400 | 2,509 | |||||||||
Salesforce.com, Inc. (a) | 20,500 | 3,840 | |||||||||
ServiceNow, Inc. (a) | 6,100 | 2,471 | |||||||||
36,464 | |||||||||||
Technology Hardware, Storage & Peripherals (5.7%): | |||||||||||
Apple, Inc. | 54,120 | 19,743 | |||||||||
Total Common Stocks (Cost $268,833) | 341,029 | ||||||||||
Rights (0.0%) (c) | |||||||||||
Communication Services (0.0%): (c) | |||||||||||
T-Mobile U.S., Inc. (a) | 48,800 | 8 | |||||||||
Total Rights (Cost $—) | 8 | ||||||||||
Exchange-Traded Funds (1.5%) | |||||||||||
iShares Russell 3000 ETF | 28,200 | 5,078 | |||||||||
Total Exchange-Traded Funds (Cost $3,918) | 5,078 | ||||||||||
Collateral for Securities Loaned^ (0.8%) | |||||||||||
BlackRock Liquidity Funds TempFund Portfolio, Institutional Class, 0.28% (d) | 48,263 | 48 | |||||||||
Fidelity Investments Money Market Government Portfolio, Class I, 0.09% (d) | 1,460,711 | 1,461 | |||||||||
Goldman Sachs Financial Square Prime Obligations Fund, Institutional Class, 0.30% (d) | 335,619 | 336 | |||||||||
JPMorgan Prime Money Market Fund, Capital Class, 0.43% (d) | 192,051 | 192 | |||||||||
Morgan Stanley Institutional Liquidity Prime Portfolio, Institutional Class, 0.41% (d) | 863,499 | 863 | |||||||||
Total Collateral for Securities Loaned (Cost $2,900) | 2,900 | ||||||||||
Total Investments (Cost $275,651) — 100.4% | 349,015 | ||||||||||
Liabilities in excess of other assets — (0.4)% | (1,346 | ) | |||||||||
NET ASSETS — 100.00% | $ | 347,669 |
^ Purchased with cash collateral from securities on loan.
(a) Non-income producing security.
(b) All or a portion of this security is on loan.
(c) Amount represents less than 0.05% of net assets.
(d) Rate disclosed is the daily yield on June 30, 2020.
ETF — Exchange-Traded Fund
PLC — Public Limited Company
See notes to financial statements.
60
Victory Portfolios Victory S&P 500 Index Fund | Schedule of Portfolio Investments June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Common Stocks (99.2%) | |||||||||||
Communication Services (10.6%): | |||||||||||
Activision Blizzard, Inc. | 6,362 | $ | 483 | ||||||||
Alphabet, Inc., Class A (a) | 2,477 | 3,513 | |||||||||
Alphabet, Inc., Class C (a) | 2,415 | 3,414 | |||||||||
AT&T, Inc. | 58,831 | 1,778 | |||||||||
CenturyLink, Inc. (b) | 8,156 | 82 | |||||||||
Charter Communications, Inc., Class A (a) | 1,244 | 634 | |||||||||
Comcast Corp., Class A | 37,608 | 1,467 | |||||||||
Discovery, Inc., Class A (a) (b) | 1,321 | 28 | |||||||||
Discovery, Inc., Class C (a) | 2,612 | 50 | |||||||||
DISH Network Corp., Class A (a) | 2,123 | 73 | |||||||||
Electronic Arts, Inc. (a) | 2,384 | 315 | |||||||||
Facebook, Inc., Class A (a) | 19,854 | 4,508 | |||||||||
Fox Corp., Class A | 2,829 | 76 | |||||||||
Fox Corp., Class B | 1,315 | 35 | |||||||||
Live Nation Entertainment, Inc. (a) | 1,173 | 52 | |||||||||
Netflix, Inc. (a) | 3,631 | 1,652 | |||||||||
News Corp., Class A | 3,211 | 38 | |||||||||
News Corp., Class B | 1,005 | 12 | |||||||||
Omnicom Group, Inc. | 1,769 | 97 | |||||||||
Take-Two Interactive Software, Inc. (a) | 941 | 131 | |||||||||
The Interpublic Group of Cos., Inc. | 3,217 | 55 | |||||||||
The Walt Disney Co. | 14,914 | 1,663 | |||||||||
T-Mobile U.S., Inc. (a) | 4,705 | 490 | |||||||||
Twitter, Inc. (a) | 6,479 | 193 | |||||||||
Verizon Communications, Inc. | 34,167 | 1,884 | |||||||||
ViacomCBS, Inc., Class B (b) | 4,464 | 104 | |||||||||
22,827 | |||||||||||
Communications Equipment (1.0%): | |||||||||||
Arista Networks, Inc. (a) | 444 | 93 | |||||||||
Cisco Systems, Inc. | 35,017 | 1,633 | |||||||||
F5 Networks, Inc. (a) | 503 | 70 | |||||||||
Juniper Networks, Inc. | 2,736 | 63 | |||||||||
Motorola Solutions, Inc. | 1,404 | 197 | |||||||||
2,056 | |||||||||||
Consumer Discretionary (10.6%): | |||||||||||
Advance Auto Parts, Inc. | 571 | 81 | |||||||||
Amazon.com, Inc. (a) | 3,459 | 9,543 | |||||||||
Aptiv PLC | 2,105 | 164 | |||||||||
AutoZone, Inc. (a) | 193 | 218 | |||||||||
Best Buy Co., Inc. | 1,877 | 164 | |||||||||
Booking Holdings, Inc. (a) | 338 | 538 | |||||||||
BorgWarner, Inc. | 1,712 | 60 | |||||||||
CarMax, Inc. (a) (b) | 1,344 | 120 | |||||||||
Carnival Corp. (b) | 3,912 | 64 | |||||||||
Chipotle Mexican Grill, Inc. (a) | 212 | 223 | |||||||||
D.R. Horton, Inc. | 2,732 | 151 |
See notes to financial statements.
61
Victory Portfolios Victory S&P 500 Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Darden Restaurants, Inc. | 1,072 | $ | 81 | ||||||||
Dollar General Corp. | 2,078 | 396 | |||||||||
Dollar Tree, Inc. (a) | 1,959 | 182 | |||||||||
Domino's Pizza, Inc. | 323 | 119 | |||||||||
eBay, Inc. | 5,454 | 286 | |||||||||
Expedia Group, Inc. | 1,118 | 92 | |||||||||
Ford Motor Co. | 32,253 | 196 | |||||||||
Garmin Ltd. | 1,199 | 117 | |||||||||
General Motors Co., Class C | 10,398 | 263 | |||||||||
Genuine Parts Co. | 1,191 | 103 | |||||||||
H&R Block, Inc. | 1,589 | 23 | |||||||||
Hanesbrands, Inc. | 2,874 | 32 | |||||||||
Hasbro, Inc. | 1,052 | 79 | |||||||||
Hilton Worldwide Holdings, Inc. | 2,289 | 168 | |||||||||
Kohl's Corp. (c) | 1,302 | 27 | |||||||||
L Brands, Inc. | 1,927 | 29 | |||||||||
Las Vegas Sands Corp. (c) | 2,775 | 126 | |||||||||
Leggett & Platt, Inc. | 1,092 | 38 | |||||||||
Lennar Corp., Class A | 2,268 | 140 | |||||||||
LKQ Corp. (a) | 2,510 | 66 | |||||||||
Lowe's Cos., Inc. | 6,234 | 842 | |||||||||
Marriott International, Inc., Class A | 2,222 | 190 | |||||||||
McDonald's Corp. | 6,140 | 1,134 | |||||||||
MGM Resorts International (b) | 4,072 | 68 | |||||||||
Mohawk Industries, Inc. (a) | 491 | 50 | |||||||||
Newell Brands, Inc. | 3,152 | 50 | |||||||||
Nike, Inc., Class B | 10,239 | 1,005 | |||||||||
Norwegian Cruise Line Holdings Ltd. (a) | 2,117 | 35 | |||||||||
NVR, Inc. (a) | 29 | 95 | |||||||||
O'Reilly Automotive, Inc. (a) | 613 | 258 | |||||||||
PulteGroup, Inc. | 2,081 | 71 | |||||||||
PVH Corp. | 586 | 28 | |||||||||
Ralph Lauren Corp. | 394 | 29 | |||||||||
Ross Stores, Inc. | 2,934 | 250 | |||||||||
Royal Caribbean Cruises Ltd. | 1,418 | 71 | |||||||||
Starbucks Corp. | 9,645 | 710 | |||||||||
Tapestry, Inc. | 2,280 | 30 | |||||||||
Target Corp. (c) | 4,129 | 495 | |||||||||
The Gap, Inc. | 1,758 | 22 | |||||||||
The Home Depot, Inc. | 8,881 | 2,225 | |||||||||
The TJX Cos., Inc. | 9,891 | 500 | |||||||||
Tiffany & Co. | 902 | 110 | |||||||||
Tractor Supply Co. | 955 | 126 | |||||||||
Ulta Beauty, Inc. (a) | 465 | 95 | |||||||||
Under Armour, Inc., Class A (a) | 1,556 | 15 | |||||||||
Under Armour, Inc., Class C (a) (b) | 1,623 | 14 | |||||||||
VF Corp. | 2,633 | 160 | |||||||||
Whirlpool Corp. (b) | 513 | 66 | |||||||||
Wynn Resorts Ltd. | 802 | 60 | |||||||||
Yum! Brands, Inc. | 2,485 | 216 | |||||||||
22,909 |
See notes to financial statements.
62
Victory Portfolios Victory S&P 500 Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Consumer Staples (7.0%): | |||||||||||
Altria Group, Inc. | 15,345 | $ | 602 | ||||||||
Archer-Daniels-Midland Co. | 4,587 | 183 | |||||||||
Brown-Forman Corp., Class B | 1,506 | 96 | |||||||||
Campbell Soup Co. | 1,397 | 69 | |||||||||
Church & Dwight Co., Inc. | 2,030 | 157 | |||||||||
Colgate-Palmolive Co. | 7,072 | 518 | |||||||||
Conagra Brands, Inc. | 4,022 | 141 | |||||||||
Constellation Brands, Inc., Class A | 1,387 | 243 | |||||||||
Costco Wholesale Corp. | 3,646 | 1,106 | |||||||||
Coty, Inc., Class A (c) | 2,457 | 11 | |||||||||
General Mills, Inc. | 5,005 | 309 | |||||||||
Hormel Foods Corp. (b) | 2,314 | 112 | |||||||||
Kellogg Co. | 2,065 | 136 | |||||||||
Kimberly-Clark Corp. | 2,812 | 397 | |||||||||
Lamb Weston Holdings, Inc. | 1,206 | 77 | |||||||||
McCormick & Co., Inc. | 1,021 | 183 | |||||||||
Molson Coors Beverage Co., Class B | 1,553 | 53 | |||||||||
Mondelez International, Inc., Class A | 11,787 | 603 | |||||||||
Monster Beverage Corp. (a) | 3,087 | 214 | |||||||||
PepsiCo, Inc. | 11,457 | 1,515 | |||||||||
Philip Morris International, Inc. | 12,857 | 901 | |||||||||
Sysco Corp. | 4,191 | 229 | |||||||||
The Clorox Co. | 1,033 | 227 | |||||||||
The Coca-Cola Co. | 31,916 | 1,426 | |||||||||
The Estee Lauder Cos., Inc., Class A | 1,856 | 350 | |||||||||
The Hershey Co. | 1,217 | 158 | |||||||||
The J.M. Smucker Co. | 942 | 100 | |||||||||
The Kraft Heinz Co. | 5,145 | 164 | |||||||||
The Kroger Co. | 6,492 | 220 | |||||||||
The Procter & Gamble Co. | 20,441 | 2,444 | |||||||||
Tyson Foods, Inc., Class A | 2,430 | 145 | |||||||||
Walgreens Boots Alliance, Inc. | 6,084 | 258 | |||||||||
Walmart, Inc. | 11,692 | 1,400 | |||||||||
14,747 | |||||||||||
Electronic Equipment, Instruments & Components (0.5%): | |||||||||||
Amphenol Corp., Class A | 2,443 | 233 | |||||||||
CDW Corp. | 1,175 | 137 | |||||||||
Corning, Inc. | 6,267 | 162 | |||||||||
FLIR Systems, Inc. | 1,080 | 44 | |||||||||
IPG Photonics Corp. (a) | 293 | 47 | |||||||||
Keysight Technologies, Inc. (a) | 1,544 | 156 | |||||||||
TE Connectivity Ltd. | 2,724 | 222 | |||||||||
Zebra Technologies Corp. (a) | 438 | 112 | |||||||||
1,113 | |||||||||||
Energy (2.8%): | |||||||||||
Apache Corp. | 3,116 | �� | 42 | ||||||||
Baker Hughes Co. | 5,409 | 83 | |||||||||
Cabot Oil & Gas Corp. | 3,291 | 57 |
See notes to financial statements.
63
Victory Portfolios Victory S&P 500 Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Chevron Corp. | 15,416 | $ | 1,376 | ||||||||
Concho Resources, Inc. | 1,624 | 84 | |||||||||
ConocoPhillips | 8,855 | 372 | |||||||||
Devon Energy Corp. | 3,160 | 36 | |||||||||
Diamondback Energy, Inc. | 1,303 | 54 | |||||||||
EOG Resources, Inc. | 4,806 | 243 | |||||||||
Exxon Mobil Corp. | 34,912 | 1,560 | |||||||||
Halliburton Co. | 7,244 | 95 | |||||||||
Hess Corp. (b) | 2,156 | 112 | |||||||||
HollyFrontier Corp. | 1,230 | 36 | |||||||||
Kinder Morgan, Inc. | 16,059 | 244 | |||||||||
Marathon Oil Corp. | 6,526 | 40 | |||||||||
Marathon Petroleum Corp. | 5,369 | 201 | |||||||||
National Oilwell Varco, Inc. | 3,206 | 39 | |||||||||
Noble Energy, Inc. | 3,961 | 35 | |||||||||
Occidental Petroleum Corp. | 7,431 | 136 | |||||||||
ONEOK, Inc. | 3,632 | 121 | |||||||||
Phillips 66 | 3,606 | 259 | |||||||||
Pioneer Natural Resources Co. | 1,361 | 133 | |||||||||
Schlumberger Ltd. | 11,459 | 211 | |||||||||
TechnipFMC PLC | 3,473 | 24 | |||||||||
The Williams Cos., Inc. | 10,017 | 191 | |||||||||
Valero Energy Corp. | 3,366 | 198 | |||||||||
5,982 | |||||||||||
Financials (10.0%): | |||||||||||
Aflac, Inc. | 5,924 | 213 | |||||||||
American Express Co. | 5,450 | 519 | |||||||||
American International Group, Inc. | 7,112 | 222 | |||||||||
Ameriprise Financial, Inc. | 1,010 | 152 | |||||||||
Aon PLC, Class A | 1,908 | 368 | |||||||||
Arthur J. Gallagher & Co. | 1,566 | 153 | |||||||||
Assurant, Inc. | 493 | 51 | |||||||||
Bank of America Corp. | 64,471 | 1,531 | |||||||||
Berkshire Hathaway, Inc., Class B (a) | 16,052 | 2,865 | |||||||||
BlackRock, Inc., Class A | 1,274 | 693 | |||||||||
Capital One Financial Corp. | 3,759 | 235 | |||||||||
Cboe Global Markets, Inc. | 906 | 85 | |||||||||
Chubb Ltd. | 3,727 | 472 | |||||||||
Cincinnati Financial Corp. (b) | 1,246 | 80 | |||||||||
Citigroup, Inc. | 17,189 | 878 | |||||||||
Citizens Financial Group, Inc. | 3,523 | 89 | |||||||||
CME Group, Inc. | 2,961 | 481 | |||||||||
Comerica, Inc. | 1,148 | 44 | |||||||||
Discover Financial Services | 2,529 | 127 | |||||||||
E*TRADE Financial Corp. | 1,825 | 91 | |||||||||
Everest Re Group Ltd. | 330 | 68 | |||||||||
Fifth Third Bancorp | 5,878 | 113 | |||||||||
First Republic Bank | 1,416 | 150 | |||||||||
Franklin Resources, Inc. (b) | 2,290 | 48 | |||||||||
Globe Life, Inc. | 809 | 60 |
See notes to financial statements.
64
Victory Portfolios Victory S&P 500 Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Huntington Bancshares, Inc. | 8,374 | $ | 76 | ||||||||
Intercontinental Exchange, Inc. | 4,518 | 414 | |||||||||
Invesco Ltd. | 3,107 | 33 | |||||||||
JPMorgan Chase & Co. | 25,159 | 2,365 | |||||||||
KeyCorp | 8,054 | 98 | |||||||||
Lincoln National Corp. (b) | 1,595 | 59 | |||||||||
Loews Corp. | 1,998 | 69 | |||||||||
M&T Bank Corp. | 1,059 | 110 | |||||||||
MarketAxess Holdings, Inc. | 313 | 157 | |||||||||
Marsh & McLennan Cos., Inc. | 4,213 | 451 | |||||||||
MetLife, Inc. | 6,370 | 233 | |||||||||
Moody's Corp. | 1,331 | 366 | |||||||||
Morgan Stanley | 9,887 | 478 | |||||||||
MSCI, Inc. | 702 | 234 | |||||||||
Nasdaq, Inc. | 948 | 113 | |||||||||
Northern Trust Corp. (b) | 1,718 | 136 | |||||||||
People's United Financial, Inc. | 3,506 | 41 | |||||||||
Principal Financial Group, Inc. (b) | 2,103 | 87 | |||||||||
Prudential Financial, Inc. | 3,262 | 199 | |||||||||
Raymond James Financial, Inc. | 1,007 | 69 | |||||||||
Regions Financial Corp. | 7,902 | 88 | |||||||||
S&P Global, Inc. | 1,989 | 655 | |||||||||
State Street Corp. | 2,906 | 185 | |||||||||
SVB Financial Group (a) | 425 | 92 | |||||||||
Synchrony Financial | 4,434 | 98 | |||||||||
T. Rowe Price Group, Inc. | 1,879 | 232 | |||||||||
The Allstate Corp. | 2,594 | 252 | |||||||||
The Bank of New York Mellon Corp. | 6,653 | 257 | |||||||||
The Charles Schwab Corp. | 9,461 | 319 | |||||||||
The Goldman Sachs Group, Inc. | 2,556 | 505 | |||||||||
The Hartford Financial Services Group, Inc. | 2,957 | 114 | |||||||||
The PNC Financial Services Group, Inc. | 3,503 | 369 | |||||||||
The Progressive Corp. | 4,833 | 386 | |||||||||
The Travelers Cos., Inc. | 2,088 | 238 | |||||||||
Truist Financial Corp. | 11,126 | 418 | |||||||||
U.S. Bancorp | 11,318 | 417 | |||||||||
Unum Group | 1,680 | 28 | |||||||||
W.R. Berkley Corp. | 1,166 | 67 | |||||||||
Wells Fargo & Co. | 30,807 | 789 | |||||||||
Willis Towers Watson PLC | 1,063 | 209 | |||||||||
Zions Bancorp NA | 1,353 | 46 | |||||||||
21,340 | |||||||||||
Health Care (14.7%): | |||||||||||
Abbott Laboratories | 14,605 | 1,335 | |||||||||
AbbVie, Inc. | 14,552 | 1,428 | |||||||||
ABIOMED, Inc. (a) | 371 | 90 | |||||||||
Agilent Technologies, Inc. | 2,550 | 225 | |||||||||
Alexion Pharmaceuticals, Inc. (a) | 1,823 | 205 | |||||||||
Align Technology, Inc. (a) | 592 | 162 | |||||||||
AmerisourceBergen Corp. | 1,226 | 124 |
See notes to financial statements.
65
Victory Portfolios Victory S&P 500 Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Amgen, Inc. | 4,857 | $ | 1,145 | ||||||||
Anthem, Inc. | 2,082 | 548 | |||||||||
Baxter International, Inc. | 4,201 | 362 | |||||||||
Becton Dickinson & Co. | 2,435 | 583 | |||||||||
Biogen, Inc. (a) | 1,347 | 360 | |||||||||
Bio-Rad Laboratories, Inc., Class A (a) | 176 | 79 | |||||||||
Boston Scientific Corp. (a) | 11,796 | 414 | |||||||||
Bristol-Myers Squibb Co. | 18,683 | 1,099 | |||||||||
Cardinal Health, Inc. | 2,411 | 126 | |||||||||
Centene Corp. (a) | 4,782 | 304 | |||||||||
Cerner Corp. | 2,513 | 172 | |||||||||
Cigna Corp. | 3,047 | 572 | |||||||||
CVS Health Corp. | 10,793 | 700 | |||||||||
Danaher Corp. (b) | 5,196 | 919 | |||||||||
DaVita, Inc. (a) | 704 | 56 | |||||||||
DENTSPLY SIRONA, Inc. | 1,809 | 80 | |||||||||
DexCom, Inc. (a) | 762 | 309 | |||||||||
Edwards Lifesciences Corp. (a) | 5,117 | 354 | |||||||||
Eli Lilly & Co. | 6,954 | 1,142 | |||||||||
Gilead Sciences, Inc. (c) | 10,354 | 797 | |||||||||
HCA Healthcare, Inc. | 2,174 | 211 | |||||||||
Henry Schein, Inc. (a) | 1,179 | 69 | |||||||||
Hologic, Inc. (a) | 2,132 | 122 | |||||||||
Humana, Inc. | 1,092 | 423 | |||||||||
IDEXX Laboratories, Inc. (a) | 701 | 231 | |||||||||
Illumina, Inc. (a) | 1,214 | 450 | |||||||||
Incyte Corp. (a) | 1,490 | 155 | |||||||||
Intuitive Surgical, Inc. (a) | 963 | 549 | |||||||||
IQVIA Holdings, Inc. (a) | 1,466 | 208 | |||||||||
Johnson & Johnson (c) | 21,754 | 3,058 | |||||||||
Laboratory Corp. of America Holdings (a) | 803 | 133 | |||||||||
McKesson Corp. | 1,336 | 205 | |||||||||
Medtronic PLC | 11,073 | 1,015 | |||||||||
Merck & Co., Inc. | 20,841 | 1,612 | |||||||||
Mettler-Toledo International, Inc. (a) | 197 | 159 | |||||||||
Mylan NV (a) | 4,268 | 69 | |||||||||
PerkinElmer, Inc. | 920 | 90 | |||||||||
Perrigo Co. PLC | 1,126 | 62 | |||||||||
Pfizer, Inc. | 45,866 | 1,500 | |||||||||
Quest Diagnostics, Inc. | 1,104 | 126 | |||||||||
Regeneron Pharmaceuticals, Inc. (a) | 833 | 520 | |||||||||
ResMed, Inc. | 1,195 | 229 | |||||||||
STERIS PLC | 701 | 108 | |||||||||
Stryker Corp. | 2,662 | 480 | |||||||||
Teleflex, Inc. | 383 | 139 | |||||||||
The Cooper Cos., Inc. | 406 | 115 | |||||||||
Thermo Fisher Scientific, Inc. | 3,261 | 1,182 | |||||||||
UnitedHealth Group, Inc. | 7,831 | 2,309 | |||||||||
Universal Health Services, Inc., Class B | 641 | 60 | |||||||||
Varian Medical Systems, Inc. (a) | 750 | 92 |
See notes to financial statements.
66
Victory Portfolios Victory S&P 500 Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Vertex Pharmaceuticals, Inc. (a) | 2,141 | $ | 622 | ||||||||
Waters Corp. (a) | 511 | 92 | |||||||||
West Pharmaceutical Services, Inc. | 608 | 138 | |||||||||
Zimmer Biomet Holdings, Inc. | 1,708 | 204 | |||||||||
Zoetis, Inc. | 3,922 | 537 | |||||||||
30,964 | |||||||||||
Industrials (7.9%): | |||||||||||
3M Co. | 4,749 | 741 | |||||||||
Alaska Air Group, Inc. | 1,012 | 37 | |||||||||
Allegion PLC | 761 | 78 | |||||||||
American Airlines Group, Inc. (b) | 4,103 | 54 | |||||||||
AMETEK, Inc. | 1,894 | 169 | |||||||||
AO Smith Corp. | 1,115 | 53 | |||||||||
C.H. Robinson Worldwide, Inc. | 1,111 | 88 | |||||||||
Carrier Global Corp. | 6,723 | 149 | |||||||||
Caterpillar, Inc. | 4,469 | 565 | |||||||||
Cintas Corp. | 696 | 185 | |||||||||
Copart, Inc. (a) | 1,706 | 142 | |||||||||
CSX Corp. | 6,320 | 441 | |||||||||
Cummins, Inc. | 1,218 | 211 | |||||||||
Deere & Co. | 2,583 | 406 | |||||||||
Delta Air Lines, Inc. | 4,687 | 131 | |||||||||
Dover Corp. | 1,189 | 115 | |||||||||
Eaton Corp. PLC | 3,303 | 289 | |||||||||
Emerson Electric Co. | 4,933 | 306 | |||||||||
Equifax, Inc. | 1,002 | 172 | |||||||||
Expeditors International of Washington, Inc. | 1,374 | 104 | |||||||||
Fastenal Co. | 4,730 | 203 | |||||||||
FedEx Corp. | 1,985 | 278 | |||||||||
Flowserve Corp. | 1,074 | 31 | |||||||||
Fortive Corp. | 2,448 | 166 | |||||||||
Fortune Brands Home & Security, Inc. | 1,154 | 74 | |||||||||
General Dynamics Corp. | 1,919 | 287 | |||||||||
General Electric Co. | 72,224 | 493 | |||||||||
Honeywell International, Inc. | 5,795 | 838 | |||||||||
Howmet Aerospace, Inc. | 3,169 | 50 | |||||||||
Huntington Ingalls Industries, Inc. | 334 | 58 | |||||||||
IDEX Corp. | 623 | 98 | |||||||||
IHS Markit Ltd. | 3,294 | 249 | |||||||||
Illinois Tool Works, Inc. | 2,374 | 415 | |||||||||
Ingersoll Rand, Inc. (a) (c) | 2,855 | 80 | |||||||||
J.B. Hunt Transport Services, Inc. | 697 | 84 | |||||||||
Jacobs Engineering Group, Inc. | 1,074 | 91 | |||||||||
Johnson Controls International PLC | 6,142 | 209 | |||||||||
Kansas City Southern | 785 | 117 | |||||||||
L3Harris Technologies, Inc. | 1,782 | 302 | |||||||||
Lockheed Martin Corp. | 2,038 | 744 | |||||||||
Masco Corp. | 2,178 | 109 | |||||||||
Nielsen Holdings PLC (b) | 2,943 | 44 | |||||||||
Norfolk Southern Corp. | 2,115 | 371 |
See notes to financial statements.
67
Victory Portfolios Victory S&P 500 Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Northrop Grumman Corp. | 1,280 | $ | 394 | ||||||||
Old Dominion Freight Line, Inc. | 779 | 132 | |||||||||
Otis Worldwide Corp. | 3,361 | 191 | |||||||||
PACCAR, Inc. | 2,855 | 214 | |||||||||
Parker-Hannifin Corp. | 1,060 | 194 | |||||||||
Pentair PLC | 1,368 | 52 | |||||||||
Quanta Services, Inc. | 1,137 | 45 | |||||||||
Raytheon Technologies Corp. | 12,144 | 748 | |||||||||
Republic Services, Inc. (c) | 1,735 | 142 | |||||||||
Robert Half International, Inc. | 946 | 50 | |||||||||
Rockwell Automation, Inc. | 956 | 204 | |||||||||
Rollins, Inc. | 1,164 | 49 | |||||||||
Roper Technologies, Inc. | 862 | 335 | |||||||||
Snap-on, Inc. (b) | 449 | 62 | |||||||||
Southwest Airlines Co. | 4,428 | 151 | |||||||||
Stanley Black & Decker, Inc. | 1,273 | 177 | |||||||||
Teledyne Technologies, Inc. (a) | 302 | 94 | |||||||||
Textron, Inc. | 1,880 | 62 | |||||||||
The Boeing Co. | 4,427 | 812 | |||||||||
Trane Technologies PLC | 1,975 | 176 | |||||||||
TransDigm Group, Inc. | 415 | 183 | |||||||||
Union Pacific Corp. | 5,603 | 948 | |||||||||
United Airlines Holdings, Inc. (a) | 2,086 | 72 | |||||||||
United Parcel Service, Inc., Class B | 5,814 | 647 | |||||||||
United Rentals, Inc. (a) | 595 | 89 | |||||||||
Verisk Analytics, Inc. | 1,340 | 228 | |||||||||
W.W. Grainger, Inc. | 358 | 112 | |||||||||
Waste Management, Inc. | 3,206 | 341 | |||||||||
Westinghouse Air Brake Technologies Corp. | 1,493 | 86 | |||||||||
Xylem, Inc. | 1,486 | 97 | |||||||||
16,914 | |||||||||||
IT Services (5.6%): | |||||||||||
Accenture PLC, Class A | 5,260 | 1,129 | |||||||||
Akamai Technologies, Inc. (a) | 1,340 | 144 | |||||||||
Automatic Data Processing, Inc. | 3,549 | 528 | |||||||||
Broadridge Financial Solutions, Inc. | 948 | 120 | |||||||||
Cognizant Technology Solutions Corp., Class A | 4,464 | 254 | |||||||||
DXC Technology Co. | 2,095 | 35 | |||||||||
Fidelity National Information Services, Inc. | 5,101 | 684 | |||||||||
Fiserv, Inc. (a) | 4,643 | 453 | |||||||||
FleetCor Technologies, Inc. (a) | 692 | 174 | |||||||||
Gartner, Inc. (a) | 736 | 89 | |||||||||
Global Payments, Inc. | 2,470 | 419 | |||||||||
International Business Machines Corp. | 7,331 | 885 | |||||||||
Jack Henry & Associates, Inc. | 633 | 116 | |||||||||
Leidos Holdings, Inc. | 1,102 | 103 | |||||||||
Mastercard, Inc., Class A | 7,298 | 2,158 | |||||||||
Paychex, Inc. | 2,636 | 200 | |||||||||
PayPal Holdings, Inc. (a) | 9,695 | 1,689 | |||||||||
The Western Union Co. (b) | 3,393 | 73 |
See notes to financial statements.
68
Victory Portfolios Victory S&P 500 Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
VeriSign, Inc. (a) | 840 | $ | 174 | ||||||||
Visa, Inc., Class A | 13,930 | 2,691 | |||||||||
12,118 | |||||||||||
Materials (2.6%): | |||||||||||
Air Products & Chemicals, Inc. | 1,824 | 441 | |||||||||
Albemarle Corp. (b) | 878 | 68 | |||||||||
Amcor PLC (b) | 13,000 | 133 | |||||||||
Avery Dennison Corp. | 688 | 78 | |||||||||
Ball Corp. | 2,692 | 188 | |||||||||
Celanese Corp. | 976 | 84 | |||||||||
CF Industries Holdings, Inc. | 1,765 | 50 | |||||||||
Corteva, Inc. | 6,179 | 166 | |||||||||
Dow, Inc. | 6,116 | 249 | |||||||||
DuPont de Nemours, Inc. | 6,059 | 322 | |||||||||
Eastman Chemical Co. | 1,122 | 78 | |||||||||
Ecolab, Inc. | 2,042 | 406 | |||||||||
FMC Corp. | 1,069 | 106 | |||||||||
Freeport-McMoRan, Inc. | 11,989 | 139 | |||||||||
International Flavors & Fragrances, Inc. (b) | 882 | 108 | |||||||||
International Paper Co. | 3,245 | 114 | |||||||||
Linde PLC | 4,336 | 919 | |||||||||
LyondellBasell Industries NV, Class A | 2,122 | 139 | |||||||||
Martin Marietta Materials, Inc. | 514 | 106 | |||||||||
Newmont Corp. | 6,627 | 409 | |||||||||
Nucor Corp. | 2,486 | 103 | |||||||||
Packaging Corp. of America | 783 | 78 | |||||||||
PPG Industries, Inc. | 1,948 | 207 | |||||||||
Sealed Air Corp. | 1,285 | 42 | |||||||||
The Mosaic Co. | 2,879 | 36 | |||||||||
The Sherwin-Williams Co. | 667 | 385 | |||||||||
Vulcan Materials Co. (b) | 1,094 | 127 | |||||||||
Westrock Co. | 2,141 | 61 | |||||||||
5,342 | |||||||||||
Real Estate (2.9%): | |||||||||||
Alexandria Real Estate Equities, Inc. | 1,042 | 169 | |||||||||
American Tower Corp. | 3,660 | 946 | |||||||||
Apartment Investment & Management Co. | 1,229 | 46 | |||||||||
AvalonBay Communities, Inc. | 1,162 | 180 | |||||||||
Boston Properties, Inc. | 1,193 | 108 | |||||||||
CBRE Group, Inc., Class A (a) | 2,767 | 125 | |||||||||
Crown Castle International Corp. | 3,441 | 576 | |||||||||
Digital Realty Trust, Inc. | 2,215 | 315 | |||||||||
Duke Realty Corp. | 3,042 | 108 | |||||||||
Equinix, Inc. | 731 | 513 | |||||||||
Equity Residential | 2,888 | 170 | |||||||||
Essex Property Trust, Inc. | 540 | 124 | |||||||||
Extra Space Storage, Inc. | 1,066 | 98 | |||||||||
Federal Realty Investment Trust (b) | 581 | 50 | |||||||||
Healthpeak Properties, Inc. | 4,444 | 122 |
See notes to financial statements.
69
Victory Portfolios Victory S&P 500 Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Host Hotels & Resorts, Inc. | 5,821 | $ | 63 | ||||||||
Iron Mountain, Inc. (b) | 2,377 | 62 | |||||||||
Kimco Realty Corp. | 3,571 | 46 | |||||||||
Mid-America Apartment Communities, Inc. | 944 | 108 | |||||||||
Prologis, Inc. | 6,098 | 569 | |||||||||
Public Storage | 1,241 | 238 | |||||||||
Realty Income Corp. | 2,836 | 169 | |||||||||
Regency Centers Corp. | 1,401 | 64 | |||||||||
SBA Communications Corp. | 922 | 275 | |||||||||
Simon Property Group, Inc. | 2,525 | 173 | |||||||||
SL Green Realty Corp. | 632 | 31 | |||||||||
UDR, Inc. | 2,435 | 91 | |||||||||
Ventas, Inc. | 3,080 | 113 | |||||||||
Vornado Realty Trust | 1,310 | 50 | |||||||||
Welltower, Inc. | 3,447 | 178 | |||||||||
Weyerhaeuser Co. | 6,161 | 138 | |||||||||
6,018 | |||||||||||
Semiconductors & Semiconductor Equipment (4.8%): | |||||||||||
Advanced Micro Devices, Inc. (a) | 9,670 | 509 | |||||||||
Analog Devices, Inc. | 3,042 | 373 | |||||||||
Applied Materials, Inc. | 7,567 | 457 | |||||||||
Broadcom, Inc. | 3,301 | 1,042 | |||||||||
Intel Corp. | 34,960 | 2,092 | |||||||||
KLA Corp. | 1,280 | 249 | |||||||||
Lam Research Corp. | 1,199 | 388 | |||||||||
Maxim Integrated Products, Inc. | 2,202 | 133 | |||||||||
Microchip Technology, Inc. (b) | 2,026 | 213 | |||||||||
Micron Technology, Inc. (a) | 9,183 | 473 | |||||||||
NVIDIA Corp. | 5,079 | 1,930 | |||||||||
Qorvo, Inc. (a) | 947 | 105 | |||||||||
QUALCOMM, Inc. | 9,289 | 847 | |||||||||
Skyworks Solutions, Inc. | 1,378 | 176 | |||||||||
Texas Instruments, Inc. | 7,578 | 962 | |||||||||
Xilinx, Inc. | 2,008 | 198 | |||||||||
10,147 | |||||||||||
Software (9.2%): | |||||||||||
Adobe, Inc. (a) | 3,978 | 1,732 | |||||||||
ANSYS, Inc. (a) | 709 | 207 | |||||||||
Autodesk, Inc. (a) | 1,810 | 433 | |||||||||
Cadence Design Systems, Inc. (a) | 2,305 | 221 | |||||||||
Citrix Systems, Inc. | 958 | 142 | |||||||||
Fortinet, Inc. (a) | 1,108 | 152 | |||||||||
Intuit, Inc. | 2,153 | 638 | |||||||||
Microsoft Corp. (c) | 62,616 | 12,742 | |||||||||
NortonLifeLock, Inc. | 4,475 | 89 | |||||||||
Oracle Corp. | 17,186 | 950 | |||||||||
Paycom Software, Inc. (a) | 398 | 123 | |||||||||
Salesforce.com, Inc. (a) | 7,439 | 1,394 | |||||||||
ServiceNow, Inc. (a) (c) | 1,575 | 638 |
See notes to financial statements.
70
Victory Portfolios Victory S&P 500 Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Synopsys, Inc. (a) | 1,245 | $ | 243 | ||||||||
Tyler Technologies, Inc. (a) | 328 | 114 | |||||||||
19,818 | |||||||||||
Technology Hardware, Storage & Peripherals (5.9%): | |||||||||||
Apple, Inc. | 33,641 | 12,273 | |||||||||
Hewlett Packard Enterprise Co. | 10,608 | 103 | |||||||||
HP, Inc. | 11,807 | 206 | |||||||||
NetApp, Inc. | 1,826 | 81 | |||||||||
Seagate Technology PLC | 1,865 | 90 | |||||||||
Western Digital Corp. | 2,475 | 109 | |||||||||
Xerox Holdings Corp. | 1,512 | 23 | |||||||||
12,885 | |||||||||||
Utilities (3.1%): | |||||||||||
Alliant Energy Corp. | 2,060 | 99 | |||||||||
Ameren Corp. | 2,039 | 143 | |||||||||
American Electric Power Co., Inc. (c) | 4,092 | 326 | |||||||||
American Water Works Co., Inc. | 1,495 | 192 | |||||||||
Atmos Energy Corp. | 1,010 | 101 | |||||||||
CenterPoint Energy, Inc. | 4,497 | 84 | |||||||||
CMS Energy Corp. | 2,363 | 138 | |||||||||
Consolidated Edison, Inc. (c) | 2,759 | 198 | |||||||||
Dominion Energy, Inc. (b) | 6,929 | 563 | |||||||||
DTE Energy Co. | 1,590 | 171 | |||||||||
Duke Energy Corp. (b) (c) | 6,068 | 485 | |||||||||
Edison International (b) | 3,120 | 169 | |||||||||
Entergy Corp. | 1,653 | 155 | |||||||||
Evergy, Inc. (c) | 1,872 | 111 | |||||||||
Eversource Energy (c) | 2,778 | 231 | |||||||||
Exelon Corp. | 8,046 | 292 | |||||||||
FirstEnergy Corp. | 4,473 | 173 | |||||||||
NextEra Energy, Inc. (c) | 4,041 | 971 | |||||||||
NiSource, Inc. | 3,161 | 72 | |||||||||
NRG Energy, Inc. | 2,015 | 66 | |||||||||
Pinnacle West Capital Corp. | 929 | 68 | |||||||||
PPL Corp. | 6,348 | 164 | |||||||||
Public Service Enterprise Group, Inc. | 4,175 | 205 | |||||||||
Sempra Energy | 2,415 | 284 | |||||||||
The AES Corp. | 5,490 | 79 | |||||||||
The Southern Co. (c) | 8,719 | 452 | |||||||||
WEC Energy Group, Inc. (c) | 2,605 | 228 | |||||||||
Xcel Energy, Inc. (c) | 4,335 | 271 | |||||||||
6,491 | |||||||||||
Total Common Stocks (Cost $49,319) | 211,671 |
See notes to financial statements.
71
Victory Portfolios Victory S&P 500 Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Rights (0.0%) (d) | |||||||||||
Communication Services (0.0%): (d) | |||||||||||
T-Mobile U.S., Inc. (a) | 3,163 | $ | 1 | ||||||||
Total Rights (Cost $—) | 1 | ||||||||||
Collateral for Securities Loaned^ (1.0%) | |||||||||||
BlackRock Liquidity Funds TempFund Portfolio, Institutional Class, 0.28% (e) | 36,500 | 37 | |||||||||
Fidelity Investments Money Market Government Portfolio, Class I, 0.09% (e) | 1,103,413 | 1,103 | |||||||||
Goldman Sachs Financial Square Prime Obligations Fund, Institutional Class, 0.30% (e) | 253,525 | 254 | |||||||||
JPMorgan Prime Money Market Fund, Capital Class, 0.43% (e) | 145,074 | 145 | |||||||||
Morgan Stanley Institutional Liquidity Prime Portfolio, Institutional Class, 0.41% (e) | 652,282 | 652 | |||||||||
Total Collateral for Securities Loaned (Cost $2,191) | 2,191 | ||||||||||
Total Investments (Cost $51,510) — 100.2% | 213,863 | ||||||||||
Liabilities in excess of other assets — (0.2)% | (351 | ) | |||||||||
NET ASSETS — 100.00% | $ | 213,512 |
^ Purchased with cash collateral from securities on loan.
(a) Non-income producing security.
(b) All or a portion of this security is on loan.
(c) All or a portion of this security has been segregated as collateral for derivative instruments.
(d) Amount represents less than 0.05% of net assets.
(e) Rate disclosed is the daily yield on June 30, 2020.
PLC — Public Limited Company
Futures Contracts Purchased
(Amounts not in thousands)
Number of Contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation/ (Depreciation) | |||||||||||||||||||
E-Mini S&P 500 Future | 12 | 9/18/20 | $ | 1,856,233 | $ | 1,854,120 | $ | (2,113 | ) | ||||||||||||||
Total unrealized appreciation | $ | — | |||||||||||||||||||||
Total unrealized depreciation | (2,113 | ) | |||||||||||||||||||||
Total net unrealized appreciation (depreciation) | $ | (2,113 | ) |
See notes to financial statements.
72
Victory Portfolios Victory Munder Mid-Cap Core Growth Fund | Schedule of Portfolio Investments June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Common Stocks (97.3%) | |||||||||||
Communication Services (0.9%): | |||||||||||
Live Nation Entertainment, Inc. (a) (b) | 117,944 | $ | 5,228 | ||||||||
Consumer Discretionary (15.5%): | |||||||||||
AutoZone, Inc. (a) | 9,700 | 10,943 | |||||||||
Chipotle Mexican Grill, Inc. (a) | 7,700 | 8,103 | |||||||||
Choice Hotels International, Inc. | 53,400 | 4,213 | |||||||||
D.R. Horton, Inc. | 136,300 | 7,558 | |||||||||
Dollar General Corp. | 64,700 | 12,326 | |||||||||
Five Below, Inc. (a) (b) | 36,200 | 3,870 | |||||||||
Lululemon Athletica, Inc. (a) | 18,100 | 5,647 | |||||||||
Marriott Vacations Worldwide Corp. | 71,221 | 5,855 | |||||||||
NVR, Inc. (a) | 2,600 | 8,473 | |||||||||
Penn National Gaming, Inc. (a) (b) | 136,300 | 4,163 | |||||||||
Ross Stores, Inc. | 52,336 | 4,461 | |||||||||
Thor Industries, Inc. (b) | 103,300 | 11,005 | |||||||||
YETI Holdings, Inc. (a) | 100,700 | 4,303 | |||||||||
90,920 | |||||||||||
Consumer Staples (2.1%): | |||||||||||
McCormick & Co., Inc. | 45,700 | 8,199 | |||||||||
The Clorox Co. | 18,100 | 3,971 | |||||||||
12,170 | |||||||||||
Energy (0.7%): | |||||||||||
Cheniere Energy, Inc. (a) | 85,465 | 4,130 | |||||||||
Financials (7.3%): | |||||||||||
Ally Financial, Inc. | 277,300 | 5,499 | |||||||||
Brown & Brown, Inc. (b) | 217,100 | 8,849 | |||||||||
MarketAxess Holdings, Inc. | 9,100 | 4,558 | |||||||||
MSCI, Inc. | 31,900 | 10,649 | |||||||||
Radian Group, Inc. | 494,677 | 7,672 | |||||||||
Synchrony Financial | 254,400 | 5,637 | |||||||||
42,864 | |||||||||||
Health Care (15.8%): | |||||||||||
Agilent Technologies, Inc. | 89,693 | 7,926 | |||||||||
Baxter International, Inc. | 114,099 | 9,824 | |||||||||
DexCom, Inc. (a) | 9,500 | 3,851 | |||||||||
Edwards Lifesciences Corp. (a) | 128,100 | 8,853 | |||||||||
Incyte Corp. (a) | 89,300 | 9,285 | |||||||||
Insulet Corp. (a) | 36,000 | 6,993 | |||||||||
IQVIA Holdings, Inc. (a) | 57,200 | 8,116 | |||||||||
Teladoc Health, Inc. (a) (b) | 16,800 | 3,206 | |||||||||
Teleflex, Inc. | 23,300 | 8,481 | |||||||||
Veeva Systems, Inc., Class A (a) | 55,800 | 13,081 | |||||||||
Zoetis, Inc. | 92,730 | 12,708 | |||||||||
92,324 |
See notes to financial statements.
73
Victory Portfolios Victory Munder Mid-Cap Core Growth Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Industrials (14.2%): | |||||||||||
AerCap Holdings NV (a) | 144,300 | $ | 4,444 | ||||||||
AMETEK, Inc. | 118,418 | 10,583 | |||||||||
Chart Industries, Inc. (a) | 71,700 | 3,477 | |||||||||
Clean Harbors, Inc. (a) | 91,000 | 5,458 | |||||||||
Copa Holdings SA | 88,000 | 4,449 | |||||||||
HEICO Corp. (b) | 46,400 | 4,624 | |||||||||
Jacobs Engineering Group, Inc. (b) | 29,200 | 2,476 | |||||||||
Kratos Defense & Security Solutions, Inc. (a) (b) | 252,600 | 3,948 | |||||||||
L3Harris Technologies, Inc. | 47,701 | 8,093 | |||||||||
Old Dominion Freight Line, Inc. | 67,650 | 11,473 | |||||||||
Owens Corning, Inc. | 136,700 | 7,622 | |||||||||
Trane Technologies PLC | 104,800 | 9,325 | |||||||||
WESCO International, Inc. (a) | 183,600 | 6,446 | |||||||||
82,418 | |||||||||||
Information Technology (23.4%): | |||||||||||
Advanced Micro Devices, Inc. (a) | 311,900 | 16,409 | |||||||||
Alteryx, Inc., Class A (a) (b) | 28,700 | 4,715 | |||||||||
Amphenol Corp., Class A | 84,010 | 8,049 | |||||||||
Atlassian Corp. PLC (a) | 17,400 | 3,137 | |||||||||
CDW Corp. | 69,359 | 8,058 | |||||||||
Crowdstrike Holdings, Inc., Class A (a) | 43,100 | 4,322 | |||||||||
EPAM Systems, Inc. (a) (b) | 46,700 | 11,768 | |||||||||
Fidelity National Information Services, Inc. | 34,044 | 4,565 | |||||||||
Fiserv, Inc. (a) | 106,500 | 10,397 | |||||||||
Global Payments, Inc. | 58,500 | 9,923 | |||||||||
GoDaddy, Inc., Class A (a) | 115,794 | 8,491 | |||||||||
Microchip Technology, Inc. (b) | 64,787 | 6,823 | |||||||||
Mimecast Ltd. (a) | 69,000 | 2,875 | |||||||||
Proofpoint, Inc. (a) | 32,900 | 3,656 | |||||||||
ServiceNow, Inc. (a) | 16,300 | 6,602 | |||||||||
SS&C Technologies Holdings, Inc. | 160,879 | 9,086 | |||||||||
SYNNEX Corp. (b) | 40,200 | 4,815 | |||||||||
Synopsys, Inc. (a) | 49,200 | 9,595 | |||||||||
Workday, Inc., Class A (a) | 19,200 | 3,597 | |||||||||
136,883 | |||||||||||
Materials (3.9%): | |||||||||||
Ball Corp. | 113,759 | 7,905 | |||||||||
CF Industries Holdings, Inc. | 185,213 | 5,212 | |||||||||
FMC Corp. | 66,532 | 6,628 | |||||||||
The Scotts Miracle-Gro Co. | 21,500 | 2,891 | |||||||||
22,636 |
See notes to financial statements.
74
Victory Portfolios Victory Munder Mid-Cap Core Growth Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Real Estate (9.1%): | |||||||||||
CBRE Group, Inc., Class A (a) | 85,090 | $ | 3,848 | ||||||||
CyrusOne, Inc. (b) | 123,600 | 8,992 | |||||||||
Digital Realty Trust, Inc. (b) | 80,346 | 11,418 | |||||||||
Realty Income Corp. | 78,800 | 4,689 | |||||||||
SBA Communications Corp. | 56,203 | 16,744 | |||||||||
Sun Communities, Inc. | 56,916 | 7,722 | |||||||||
53,413 | |||||||||||
Utilities (4.4%): | |||||||||||
Atmos Energy Corp. | 61,700 | 6,145 | |||||||||
Black Hills Corp. | 65,700 | 3,723 | |||||||||
Pinnacle West Capital Corp. | 53,600 | 3,928 | |||||||||
Sempra Energy | 54,039 | 6,335 | |||||||||
Southwest Gas Holdings, Inc. | 79,500 | 5,489 | |||||||||
25,620 | |||||||||||
Total Common Stocks (Cost $422,046) | 568,606 | ||||||||||
Exchange-Traded Funds (2.7%) | |||||||||||
SPDR S&P MidCap 400 ETF | 47,950 | 15,559 | |||||||||
Total Exchange-Traded Funds (Cost $15,855) | 15,559 | ||||||||||
Collateral for Securities Loaned^ (5.9%) | |||||||||||
BlackRock Liquidity Funds TempFund Portfolio, Institutional Class, 0.28% (c) | 575,241 | 575 | |||||||||
Fidelity Investments Money Market Government Portfolio, Class I, 0.09% (c) | 17,410,054 | 17,410 | |||||||||
Goldman Sachs Financial Square Prime Obligations Fund, Institutional Class, 0.30% (c) | 4,000,211 | 4,000 | |||||||||
JPMorgan Prime Money Market Fund, Capital Class, 0.43% (c) | 2,289,036 | 2,289 | |||||||||
Morgan Stanley Institutional Liquidity Prime Portfolio, Institutional Class, 0.41% (c) | 10,291,950 | 10,292 | |||||||||
Total Collateral for Securities Loaned (Cost $34,566) | 34,566 | ||||||||||
Total Investments (Cost $472,467) — 105.9% | 618,731 | ||||||||||
Liabilities in excess of other assets — (5.9)% | (34,368 | ) | |||||||||
NET ASSETS — 100.00% | $ | 584,363 |
^ Purchased with cash collateral from securities on loan.
(a) Non-income producing security.
(b) All or a portion of this security is on loan.
(c) Rate disclosed is the daily yield on June 30, 2020.
ETF — Exchange-Traded Fund
PLC — Public Limited Company
See notes to financial statements.
75
Victory Portfolios Victory Munder Small Cap Growth Fund | Schedule of Portfolio Investments June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Common Stocks (99.4%) | |||||||||||
Biotechnology (21.6%): | |||||||||||
ADC Therapeutics SA (a) (b) | 1,091 | $ | 51 | ||||||||
Akero Therapeutics, Inc. (a) | 1,608 | 40 | |||||||||
Akouos, Inc. (a) | 663 | 15 | |||||||||
Aprea Therapeutics, Inc. (a) | 867 | 34 | |||||||||
Arrowhead Pharmaceuticals, Inc. (a) | 1,813 | 78 | |||||||||
Athenex, Inc. (a) | 1,662 | 23 | |||||||||
Athersys, Inc. (a) (b) | 9,964 | 28 | |||||||||
Aurinia Pharmaceuticals, Inc. (a) | 6,904 | 113 | |||||||||
Avidity Biosciences, Inc. (a) (b) | 1,843 | 52 | |||||||||
Avrobio, Inc. (a) | 2,901 | 51 | |||||||||
Beam Therapeutics, Inc. (a) (b) | 2,430 | 68 | |||||||||
Bicycle Therapeutics PLC, ADR (a) (b) | 5,276 | 82 | |||||||||
BioCryst Pharmaceuticals, Inc. (a) | 11,342 | 54 | |||||||||
BioMarin Pharmaceutical, Inc. (a) | 283 | 35 | |||||||||
Black Diamond Therapeutics, Inc. (a) | 437 | 18 | |||||||||
Cabaletta Bio, Inc. (a) | 2,967 | 33 | |||||||||
Cara Therapeutics, Inc. (a) (b) | 1,428 | 24 | |||||||||
Castle Biosciences, Inc. (a) | 2,000 | 75 | |||||||||
Cellectis SA, ADR (a) | 660 | 12 | |||||||||
Cortexyme, Inc. (a) | 409 | 19 | |||||||||
CRISPR Therapeutics AG (a) | 410 | 30 | |||||||||
Deciphera Pharmaceuticals, Inc. (a) | 708 | 42 | |||||||||
Dicerna Pharmaceuticals, Inc. (a) (b) | 1,313 | 33 | |||||||||
Dynavax Technologies Corp. (a) | 6,261 | 56 | |||||||||
Enanta Pharmaceuticals, Inc. (a) | 452 | 23 | |||||||||
Esperion Therapeutics, Inc. (a) (b) | 873 | 45 | |||||||||
Fusion Pharmaceuticals, Inc. (a) | 4,261 | 74 | |||||||||
Gamida Cell Ltd. (a) | 9,195 | 42 | |||||||||
Generation Bio Co. (a) | 2,046 | 43 | |||||||||
Genetron Holdings Ltd., ADR (a) | 5,361 | 65 | |||||||||
Iovance Biotherapeutics, Inc. (a) | 2,461 | 68 | |||||||||
LogicBio Therapeutics, Inc. (a) | 3,000 | 25 | |||||||||
Natera, Inc. (a) | 2,234 | 111 | |||||||||
Neurocrine Biosciences, Inc. (a) | 336 | 41 | |||||||||
NextCure, Inc. (a) | 2,025 | 43 | |||||||||
Novavax, Inc. (a) | 864 | 72 | |||||||||
Orchard Therapeutics PLC, ADR (a) | 6,720 | 40 | |||||||||
Oyster Point Pharma, Inc. (a) | 396 | 11 | |||||||||
Passage Bio, Inc. (a) (b) | 1,346 | 37 | |||||||||
Repare Therapeutics, Inc. (a) | 214 | 7 | |||||||||
Stoke Therapeutics, Inc. (a) | 2,500 | 60 | |||||||||
Sutro Biopharma, Inc. (a) | 3,661 | 28 | |||||||||
TCR2 Therapeutics, Inc. (a) | 11,000 | 168 | |||||||||
TG Therapeutics, Inc. (a) | 2,119 | 41 | |||||||||
Veracyte, Inc. (a) | 3,428 | 89 |
See notes to financial statements.
76
Victory Portfolios Victory Munder Small Cap Growth Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Viking Therapeutics, Inc. (a) (b) | 5,623 | $ | 41 | ||||||||
Xencor, Inc. (a) | 822 | 27 | |||||||||
Zai Lab Ltd., ADR (a) | 984 | 80 | |||||||||
2,347 | |||||||||||
Communication Services (2.2%): | |||||||||||
Iridium Communications, Inc. (a) | 2,861 | 73 | |||||||||
Vonage Holdings Corp. (a) | 15,601 | 157 | |||||||||
ZoomInfo Technologies, Inc., Class A (a) | 164 | 8 | |||||||||
238 | |||||||||||
Consumer Discretionary (10.7%): | |||||||||||
Afya Ltd., Class A (a) (b) | 5,413 | 127 | |||||||||
Burlington Stores, Inc. (a) | 509 | 100 | |||||||||
Cavco Industries, Inc. (a) | 330 | 64 | |||||||||
Chegg, Inc. (a) | 2,250 | 151 | |||||||||
Chewy, Inc., Class A (a) (b) | 2,587 | 116 | |||||||||
Five Below, Inc. (a) | 1,001 | 108 | |||||||||
Group 1 Automotive, Inc. (b) | 652 | 43 | |||||||||
Legacy Housing Corp. (a) | 5,799 | 82 | |||||||||
Levi Strauss & Co., Class A (b) | 6,726 | 90 | |||||||||
Nordstrom, Inc. (b) | 4,923 | 76 | |||||||||
Skyline Champion Corp. (a) | 4,307 | 105 | |||||||||
Tractor Supply Co. | 724 | 95 | |||||||||
1,157 | |||||||||||
Consumer Staples (3.6%): | |||||||||||
Albertsons Cos., Inc., Class A (a) | 4,314 | 68 | |||||||||
Cal-Maine Foods, Inc. (a) | 1,816 | 81 | |||||||||
Grocery Outlet Holding Corp. (a) | 2,920 | 119 | |||||||||
Performance Food Group Co. (a) | 4,200 | 123 | |||||||||
391 | |||||||||||
Energy (0.9%): | |||||||||||
Magnolia Oil & Gas Corp., Class A (a) | 3,428 | 21 | |||||||||
Parsley Energy, Inc., Class A | 4,363 | 46 | |||||||||
Talos Energy, Inc. (a) | 3,132 | 29 | |||||||||
96 | |||||||||||
Financials (9.4%): | |||||||||||
Amerant Bancorp, Inc. (a) | 4,402 | 66 | |||||||||
American Business Bank (a) | 728 | 18 | |||||||||
Coastal Financial Corp. (a) | 8,400 | 123 | |||||||||
Colony Bankcorp, Inc. | 2,215 | 26 | |||||||||
Customers Bancorp, Inc., Class A (a) | 3,942 | 47 | |||||||||
First Western Financial, Inc. (a) | 6,683 | 95 | |||||||||
HBT Financial, Inc. | 4,966 | 66 | |||||||||
Morningstar, Inc. | 668 | 94 | |||||||||
Radian Group, Inc. | 5,519 | 86 | |||||||||
Silvercrest Asset Management Group, Inc., Class A | 3,935 | 50 | |||||||||
SLM Corp. | 5,481 | 39 |
See notes to financial statements.
77
Victory Portfolios Victory Munder Small Cap Growth Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
South Plains Financial, Inc. | 5,120 | $ | 73 | ||||||||
Tradeweb Markets, Inc., Class A | 2,436 | 142 | |||||||||
WTB Financial Corp., Class B | 360 | 101 | |||||||||
1,026 | |||||||||||
Health Care Equipment & Supplies (7.4%): | |||||||||||
ABIOMED, Inc. (a) | 205 | 50 | |||||||||
Brainsway Ltd., ADR (a) (b) | 11,679 | 72 | |||||||||
Cerus Corp. (a) | 6,712 | 44 | |||||||||
CytoSorbents Corp. (a) | 2,951 | 29 | |||||||||
Inari Medical, Inc. (a) (b) | 42 | 2 | |||||||||
Insulet Corp. (a) | 721 | 140 | |||||||||
Merit Medical Systems, Inc. (a) | 1,525 | 70 | |||||||||
Nuvectra Corp. (a) (c) (d) | 2,334 | — | (e) | ||||||||
PolyPid Ltd. (a) | 7,333 | 132 | |||||||||
SI-BONE, Inc. (a) | 8,957 | 143 | |||||||||
Silk Road Medical, Inc. (a) | 2,804 | 117 | |||||||||
799 | |||||||||||
Health Care Providers & Services (1.2%): | |||||||||||
Guardant Health, Inc. (a) | 1,011 | 82 | |||||||||
RadNet, Inc. (a) | 3,159 | 50 | |||||||||
132 | |||||||||||
Health Care Technology (0.2%): | |||||||||||
Schrodinger, Inc. (a) (b) | 217 | 20 | |||||||||
Industrials (12.1%): | |||||||||||
ASGN, Inc. (a) | 1,743 | 116 | |||||||||
BWX Technologies, Inc. | 1,070 | 61 | |||||||||
Casella Waste Systems, Inc. (a) | 2,586 | 135 | |||||||||
Chart Industries, Inc. (a) | 1,114 | 54 | |||||||||
Comfort Systems USA, Inc. | 2,713 | 111 | |||||||||
Construction Partners, Inc., Class A (a) | 5,757 | 102 | |||||||||
ESCO Technologies, Inc. | 571 | 48 | |||||||||
Kaman Corp. | 1,610 | 67 | |||||||||
Kratos Defense & Security Solutions, Inc. (a) | 6,093 | 95 | |||||||||
Marten Transport Ltd. | 2,867 | 72 | |||||||||
McGrath RentCorp | 1,035 | 56 | |||||||||
Owens Corning, Inc. | 1,289 | 72 | |||||||||
Parsons Corp. (a) | 3,000 | 109 | |||||||||
PGT Innovations, Inc. (a) | 3,825 | 60 | |||||||||
Rexnord Corp. | 1,529 | 45 | |||||||||
The AZEK Co., Inc. (a) | 2,561 | 81 | |||||||||
1,284 | |||||||||||
Information Technology (22.9%): | |||||||||||
Agora, Inc., ADR (a) | 22 | 1 | |||||||||
Alteryx, Inc., Class A (a) (b) | 441 | 72 | |||||||||
Blackline, Inc. (a) | 540 | 45 | |||||||||
Cambium Networks Corp. (a) | 10,000 | 74 | |||||||||
Cloudflare, Inc., Class A (a) (b) | 3,038 | 109 |
See notes to financial statements.
78
Victory Portfolios Victory Munder Small Cap Growth Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Datadog, Inc., Class A (a) | 522 | $ | 45 | ||||||||
Dropbox, Inc., Class A (a) | 1,247 | 27 | |||||||||
Elastic NV (a) | 1,342 | 124 | |||||||||
Endava PLC, ADR (a) | 1,434 | 69 | |||||||||
EPAM Systems, Inc. (a) | 305 | 77 | |||||||||
Globant SA (a) | 940 | 141 | |||||||||
Lumentum Holdings, Inc. (a) | 792 | 64 | |||||||||
Marvell Technology Group Ltd. | 1,167 | 41 | |||||||||
Napco Security Technologies, Inc. (a) | 6,551 | 154 | |||||||||
New Relic, Inc. (a) | 422 | 29 | |||||||||
ON Semiconductor Corp. (a) | 5,499 | 109 | |||||||||
OneSpan, Inc. (a) | 6,297 | 176 | |||||||||
PagerDuty, Inc. (a) | 3,709 | 106 | |||||||||
Ping Identity Holding Corp. (a) (b) | 5,277 | 169 | |||||||||
Pluralsight, Inc., Class A (a) (b) | 6,926 | 125 | |||||||||
Powerfleet, Inc. (a) | 9,414 | 43 | |||||||||
QAD, Inc., Class A | 1,749 | 72 | |||||||||
RealPage, Inc. (a) | 1,156 | 75 | |||||||||
Sapiens International Corp. NV (b) | 3,065 | 86 | |||||||||
Smartsheet, Inc., Class A (a) | 2,908 | 148 | |||||||||
WNS Holdings Ltd., ADR (a) | 2,735 | 150 | |||||||||
Zix Corp. (a) | 23,117 | 160 | |||||||||
2,491 | |||||||||||
Life Sciences Tools & Services (1.1%): | |||||||||||
10X Genomics, Inc., Class A (a) | 24 | 2 | |||||||||
Adaptive Biotechnologies Corp. (a) | 1,407 | 68 | |||||||||
NanoString Technologies, Inc. (a) (b) | 1,696 | 50 | |||||||||
120 | |||||||||||
Materials (1.0%): | |||||||||||
Summit Materials, Inc., Class A (a) | 6,383 | 103 | |||||||||
Pharmaceuticals (2.1%): | |||||||||||
Collegium Pharmaceutical, Inc. (a) | 1,187 | 21 | |||||||||
Cymabay Therapeutics, Inc. (a) | 1,278 | 4 | |||||||||
Fulcrum Therapeutics, Inc. (a) | 2,190 | 40 | |||||||||
Horizon Therapeutics PLC (a) | 987 | 55 | |||||||||
Reata Pharmaceuticals, Inc., Class A (a) | 645 | 101 | |||||||||
Vaxcyte, Inc. (a) | 129 | 4 | |||||||||
225 | |||||||||||
Real Estate (3.0%): | |||||||||||
FirstService Corp. | 868 | 87 | |||||||||
Rexford Industrial Realty, Inc. | 1,252 | 52 | |||||||||
The Macerich Co. (b) | 11,499 | 103 | |||||||||
UMH Properties, Inc. | 6,434 | 83 | |||||||||
325 | |||||||||||
Total Common Stocks (Cost $8,835) | 10,754 |
See notes to financial statements.
79
Victory Portfolios Victory Munder Small Cap Growth Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Warrants (0.0%) (f) | |||||||||||
Health Care (0.0%): (f) | |||||||||||
BioNano Genomics, Inc. (c) | 8,136 | $ | 1 | ||||||||
Total Warrants (Cost $—) | 1 | ||||||||||
Collateral for Securities Loaned^ (11.6%) | |||||||||||
BlackRock Liquidity Funds TempFund Portfolio, Institutional Class, 0.28% (g) | 20,907 | 21 | |||||||||
Fidelity Investments Money Market Government Portfolio, Class I, 0.09% (g) | 632,774 | 633 | |||||||||
Goldman Sachs Financial Square Prime Obligations Fund, Institutional Class, 0.30% (g) | 145,389 | 145 | |||||||||
JPMorgan Prime Money Market Fund, Capital Class, 0.43% (g) | 83,196 | 83 | |||||||||
Morgan Stanley Institutional Liquidity Prime Portfolio, Institutional Class, 0.41% (g) | 374,064 | 374 | |||||||||
Total Collateral for Securities Loaned (Cost $1,256) | 1,256 | ||||||||||
Total Investments (Cost $10,091) — 111.0% | 12,011 | ||||||||||
Liabilities in excess of other assets — (11.0)% | (1,195 | ) | |||||||||
NET ASSETS — 100.00% | $ | 10,816 |
^ Purchased with cash collateral from securities on loan.
(a) Non-income producing security.
(b) All or a portion of this security is on loan.
(c) The Fund's Adviser has deemed this security to be illiquid based upon procedures approved by the Board of Trustees. As of June 30, 2020, illiquid securities were 0.0% of the Fund's net assets.
(d) Security was fair valued based upon procedures approved by the Board of Trustees and represents 0.0% of the Fund's net assets as of June 30, 2020. This security is classified as Level 3 within the fair value hierarchy. (See Note 2)
(e) Rounds to less than $1 thousand.
(f) Amount represents less than 0.05% of net assets.
(g) Rate disclosed is the daily yield on June 30, 2020.
ADR — American Depositary Receipt
PLC — Public Limited Company
See notes to financial statements.
80
Victory Portfolios Victory Trivalent Emerging Markets Small-Cap Fund | Schedule of Portfolio Investments June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Common Stocks (96.6%) | |||||||||||
Brazil (5.6%): | |||||||||||
Consumer Discretionary (2.3%): | |||||||||||
Afya Ltd., Class A (a) (b) | 2,467 | $ | 58 | ||||||||
Construtora Tenda SA | 16,000 | 91 | |||||||||
Tupy SA (a) | 13,400 | 47 | |||||||||
196 | |||||||||||
Energy (0.6%): | |||||||||||
Enauta Participacoes SA | 24,300 | 46 | |||||||||
Health Care (0.5%): | |||||||||||
Notre Dame Intermedica Participacoes SA | 3,100 | 39 | |||||||||
Industrials (0.2%): | |||||||||||
Iochpe Maxion SA | 8,100 | 20 | |||||||||
Utilities (2.0%): | |||||||||||
Cia de Saneamento do Parana | 8,400 | 49 | |||||||||
Eneva SA (a) | 9,700 | 80 | |||||||||
Omega Geracao SA (a) | 5,600 | 39 | |||||||||
168 | |||||||||||
469 | |||||||||||
China (7.2%): | |||||||||||
Consumer Discretionary (1.6%): | |||||||||||
China New Higher Education Group Ltd. (c) | 113,000 | 76 | |||||||||
Tianneng Power International Ltd. (b) | 34,000 | 58 | |||||||||
134 | |||||||||||
Consumer Staples (0.4%): | |||||||||||
China Modern Dairy Holdings Ltd. (a) | 293,000 | 33 | |||||||||
Health Care (1.7%): | |||||||||||
Shandong Weigao Group Medical Polymer Co. Ltd., Class H | 44,000 | 98 | |||||||||
YiChang HEC ChangJiang Pharmaceutical Co. Ltd., Class H (c) | 20,800 | 43 | |||||||||
141 | |||||||||||
Industrials (0.9%): | |||||||||||
China Lesso Group Holdings Ltd. | 56,000 | 74 | |||||||||
Information Technology (1.3%): | |||||||||||
Chinasoft International Ltd. (b) | 88,000 | 48 | |||||||||
Silergy Corp. | 1,000 | 66 | |||||||||
114 | |||||||||||
Real Estate (0.9%): | |||||||||||
China SCE Group Holdings Ltd. | 170,000 | 74 | |||||||||
Utilities (0.4%): | |||||||||||
China Tian Lun Gas Holdings Ltd. | 50,000 | 38 | |||||||||
608 |
See notes to financial statements.
81
Victory Portfolios Victory Trivalent Emerging Markets Small-Cap Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Cyprus (0.6%): | |||||||||||
Financials (0.6%): | |||||||||||
TCS Group Holding PLC, GDR | 2,313 | $ | 47 | ||||||||
Egypt (1.1%): | |||||||||||
Communication Services (0.8%): | |||||||||||
Telecom Egypt Co. | 80,279 | 67 | |||||||||
Financials (0.3%): | |||||||||||
Credit Agricole Egypt SAE | 16,051 | 29 | |||||||||
96 | |||||||||||
Greece (1.0%): | |||||||||||
Utilities (1.0%): | |||||||||||
Terna Energy SA | 7,578 | 82 | |||||||||
Hong Kong (7.8%): | |||||||||||
Communication Services (0.8%): | |||||||||||
NetDragon Websoft Holdings Ltd. | 22,500 | 64 | |||||||||
Consumer Discretionary (0.4%): | |||||||||||
TCL Electronics Holdings Ltd. | 73,000 | 36 | |||||||||
Consumer Staples (0.9%): | |||||||||||
Vinda International Holdings Ltd. (b) | 21,000 | 75 | |||||||||
Financials (0.5%): | |||||||||||
Far East Horizon Ltd. | 46,000 | 39 | |||||||||
Health Care (0.4%): | |||||||||||
The United Laboratories International Holdings Ltd. | 44,000 | 38 | |||||||||
Industrials (1.4%): | |||||||||||
Sinotruk Hong Kong Ltd. | 27,500 | 72 | |||||||||
Yuexiu Transport Infrastructure Ltd. | 66,000 | 46 | |||||||||
118 | |||||||||||
Materials (1.4%): | |||||||||||
China Resources Cement Holdings Ltd. | 58,000 | 72 | |||||||||
Nine Dragons Paper Holdings Ltd. | 53,000 | 48 | |||||||||
120 | |||||||||||
Real Estate (1.1%): | |||||||||||
China Overseas Grand Oceans Group Ltd. | 83,000 | 47 | |||||||||
Times Neighborhood Holdings Ltd. | 34,798 | 48 | |||||||||
95 | |||||||||||
Utilities (0.9%): | |||||||||||
Canvest Environmental Protection Group Co. Ltd. | 84,000 | 37 | |||||||||
China Water Affairs Group Ltd. (b) | 52,000 | 38 | |||||||||
75 | |||||||||||
660 |
See notes to financial statements.
82
Victory Portfolios Victory Trivalent Emerging Markets Small-Cap Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Hungary (0.8%): | |||||||||||
Health Care (0.8%): | |||||||||||
Richter Gedeon Nyrt | 3,104 | $ | 64 | ||||||||
India (13.0%): | |||||||||||
Consumer Discretionary (1.0%): | |||||||||||
Crompton Greaves Consumer Electricals Ltd. | 10,947 | 35 | |||||||||
Trident Ltd. | 554,026 | 51 | |||||||||
86 | |||||||||||
Consumer Staples (0.8%): | |||||||||||
Kaveri Seed Co. Ltd. | 9,159 | 70 | |||||||||
Energy (0.5%): | |||||||||||
Hindustan Petroleum Corp. Ltd. | 15,288 | 44 | |||||||||
Financials (2.2%): | |||||||||||
Multi Commodity Exchange of India Ltd. | 2,832 | 48 | |||||||||
Muthoot Finance Ltd. | 6,367 | 92 | |||||||||
Power Finance Corp. Ltd. | 40,835 | 45 | |||||||||
185 | |||||||||||
Health Care (3.4%): | |||||||||||
Alembic Pharmaceuticals Ltd. | 6,300 | 76 | |||||||||
Granules India Ltd. | 43,101 | 116 | |||||||||
Ipca Laboratories Ltd. | 4,338 | 96 | |||||||||
288 | |||||||||||
Industrials (1.2%): | |||||||||||
Engineers India Ltd. | 25,119 | 25 | |||||||||
Escorts Ltd. | 5,410 | 75 | |||||||||
100 | |||||||||||
Information Technology (0.5%): | |||||||||||
Mphasis Ltd. | 3,389 | 39 | |||||||||
Materials (2.0%): | |||||||||||
Birla Corp. Ltd. | 6,154 | 47 | |||||||||
Coromandel International Ltd. | 6,033 | 60 | |||||||||
HeidelbergCement India Ltd. | 27,428 | 65 | |||||||||
172 | |||||||||||
Utilities (1.4%): | |||||||||||
CESC Ltd. | 5,377 | 44 | |||||||||
Gujarat Gas Ltd. | 16,445 | 70 | |||||||||
114 | |||||||||||
1,098 |
See notes to financial statements.
83
Victory Portfolios Victory Trivalent Emerging Markets Small-Cap Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Indonesia (0.7%): | |||||||||||
Communication Services (0.5%): | |||||||||||
PT Media Nusantara Citra Tbk | 642,200 | $ | 41 | ||||||||
Industrials (0.2%): | |||||||||||
PT Wijaya Karya (Persero) Tbk | 243,000 | 21 | |||||||||
62 | |||||||||||
Jersey (0.6%): | |||||||||||
Information Technology (0.6%): | |||||||||||
WNS Holdings Ltd., ADR (a) | 896 | 49 | |||||||||
Korea, Republic Of (16.3%): | |||||||||||
Communication Services (0.7%): | |||||||||||
Neowiz (a) | 2,509 | 58 | |||||||||
Consumer Discretionary (3.3%): | |||||||||||
Danawa Co. Ltd. | 1,804 | 42 | |||||||||
DoubleUGames Co. Ltd. | 1,008 | 67 | |||||||||
F&F Co. Ltd. | 686 | 53 | |||||||||
GS Home Shopping, Inc. | 290 | 27 | |||||||||
Hwaseung Enterprise Co. Ltd. | 3,311 | 32 | |||||||||
SL Corp. (d) (e) | 2,525 | 23 | |||||||||
Youngone Corp. | 1,740 | 37 | |||||||||
281 | |||||||||||
Consumer Staples (1.1%): | |||||||||||
Maeil Dairies Co. Ltd. | 1,425 | 94 | |||||||||
Financials (0.7%): | |||||||||||
KIWOOM Securities Co. Ltd. | 837 | 61 | |||||||||
Health Care (2.6%): | |||||||||||
Dongkook Pharmaceutical Co. Ltd. | 461 | 47 | |||||||||
Seegene, Inc. | 1,861 | 173 | |||||||||
220 | |||||||||||
Industrials (2.6%): | |||||||||||
Daelim Industrial Co. Ltd. | 1,013 | 70 | |||||||||
Hyundai Glovis Co. Ltd. | 426 | 36 | |||||||||
KEPCO Plant Service & Engineering Co. Ltd. | 2,042 | 50 | |||||||||
Samsung Engineering Co. Ltd. (a) | 6,318 | 65 | |||||||||
221 | |||||||||||
Information Technology (3.8%): | |||||||||||
Douzone Bizon Co. Ltd. | 1,175 | 100 | |||||||||
NHN KCP Corp. | 2,388 | 99 | |||||||||
Partron Co. Ltd. | 5,863 | 44 | |||||||||
SFA Engineering Corp. | 2,669 | 73 | |||||||||
316 |
See notes to financial statements.
84
Victory Portfolios Victory Trivalent Emerging Markets Small-Cap Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Materials (1.5%): | |||||||||||
Korea Petrochemical Ind Co. Ltd. | 281 | $ | 27 | ||||||||
Soulbrain Holdings Co. Ltd. (d) (f) | 1,183 | 94 | |||||||||
121 | |||||||||||
1,372 | |||||||||||
Luxembourg (0.5%): | |||||||||||
Communication Services (0.5%): | |||||||||||
PLAY Communications SA (c) | 5,008 | 39 | |||||||||
Malaysia (4.9%): | |||||||||||
Communication Services (0.8%): | |||||||||||
TIME dotCom Bhd | 24,700 | 63 | |||||||||
Energy (0.6%): | |||||||||||
Serba Dinamik Holdings Bhd | 135,260 | 52 | |||||||||
Health Care (2.1%): | |||||||||||
Supermax Corp. Bhd (a) | 95,700 | 180 | |||||||||
Information Technology (0.5%): | |||||||||||
V.S. Industry Bhd | 199,400 | 46 | |||||||||
Materials (0.5%): | |||||||||||
Scientex Bhd | 18,200 | 38 | |||||||||
Real Estate (0.4%): | |||||||||||
Eco World Development Group Bhd (a) | 350,900 | 34 | |||||||||
413 | |||||||||||
Mexico (4.4%): | |||||||||||
Consumer Staples (0.8%): | |||||||||||
La Comer SAB de CV | 47,546 | 66 | |||||||||
Energy (0.2%): | |||||||||||
Vista Oil & Gas SAB de CV, ADR (a) | 6,262 | 19 | |||||||||
Financials (0.8%): | |||||||||||
Banco del Bajio SA (a) (c) | 23,905 | 20 | |||||||||
Qualitas Controladora SAB de CV | 11,031 | 44 | |||||||||
64 | |||||||||||
Industrials (0.6%): | |||||||||||
Grupo Aeroportuario del Centro Norte SAB de CV (a) | 11,830 | 55 | |||||||||
Materials (1.0%): | |||||||||||
Grupo Cementos de Chihuahua SAB de CV | 20,438 | 86 | |||||||||
Real Estate (1.0%): | |||||||||||
PLA Administradora Industrial S de RL de CV | 43,024 | 50 | |||||||||
Prologis Property Mexico SA de CV | 19,228 | 34 | |||||||||
84 | |||||||||||
374 |
See notes to financial statements.
85
Victory Portfolios Victory Trivalent Emerging Markets Small-Cap Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Philippines (0.3%): | |||||||||||
Real Estate (0.3%): | |||||||||||
Vista Land & Lifescapes, Inc. | 291,100 | $ | 22 | ||||||||
Qatar (0.6%): | |||||||||||
Energy (0.6%): | |||||||||||
Qatar Gas Transport Co. Ltd. | 73,094 | 53 | |||||||||
Russian Federation (1.3%): | |||||||||||
Financials (0.5%): | |||||||||||
Moscow Exchange MICEX PJSC | 24,310 | 39 | |||||||||
Materials (0.8%): | |||||||||||
Polymetal International PLC | 3,342 | 67 | |||||||||
106 | |||||||||||
South Africa (2.4%): | |||||||||||
Energy (0.5%): | |||||||||||
Exxaro Resources Ltd. | 6,266 | 47 | |||||||||
Materials (1.4%): | |||||||||||
African Rainbow Minerals Ltd. | 8,413 | 82 | |||||||||
Impala Platinum Holdings Ltd. | 5,357 | 36 | |||||||||
118 | |||||||||||
Real Estate (0.5%): | |||||||||||
Resilient REIT Ltd. | 15,448 | 39 | |||||||||
204 | |||||||||||
Taiwan (22.2%): | |||||||||||
Communication Services (0.9%): | |||||||||||
International Games System Co. Ltd. | 3,000 | 75 | |||||||||
Consumer Discretionary (3.0%): | |||||||||||
Fulgent Sun International Holding Co. Ltd. | 11,000 | 39 | |||||||||
Merida Industry Co. Ltd. | 14,000 | 96 | |||||||||
Nan Liu Enterprise Co. Ltd. | 6,000 | 54 | |||||||||
Poya International Co. Ltd. | 3,000 | 59 | |||||||||
248 | |||||||||||
Financials (0.7%): | |||||||||||
King's Town Bank Co. Ltd. | 51,000 | 62 | |||||||||
Health Care (1.7%): | |||||||||||
TaiDoc Technology Corp. | 15,000 | 140 | |||||||||
Industrials (3.4%): | |||||||||||
Chicony Power Technology Co. Ltd. | 34,000 | 78 | |||||||||
Kung Long Batteries Industrial Co. Ltd. | 17,000 | 85 | |||||||||
Shin Zu Shing Co. Ltd. | 9,000 | 46 | |||||||||
Sunonwealth Electric Machine Industry Co. Ltd. | 46,000 | 81 | |||||||||
290 |
See notes to financial statements.
86
Victory Portfolios Victory Trivalent Emerging Markets Small-Cap Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Information Technology (11.7%): | |||||||||||
Accton Technology Corp. | 15,000 | $ | 116 | ||||||||
Chipbond Technology Corp. | 30,000 | 66 | |||||||||
Elan Microelectronics Corp. | 24,200 | 99 | |||||||||
Elite Material Co. Ltd. | 9,000 | 49 | |||||||||
FLEXium Interconnect, Inc. | 11,000 | 46 | |||||||||
Parade Technologies Ltd. | 3,000 | 101 | |||||||||
Powertech Technology, Inc. | 12,000 | 44 | |||||||||
Radiant Opto-Electronics Corp. | 15,000 | 61 | |||||||||
Simplo Technology Co. Ltd. | 7,000 | 76 | |||||||||
Sinbon Electronics Co. Ltd. | 20,000 | 102 | |||||||||
Tripod Technology Corp. | 22,000 | 98 | |||||||||
Unimicron Technology Corp. | 46,000 | 79 | |||||||||
Wistron Corp. | 41,000 | 50 | |||||||||
987 | |||||||||||
Real Estate (0.8%): | |||||||||||
Chong Hong Construction Co. Ltd. | 24,000 | 71 | |||||||||
1,873 | |||||||||||
Thailand (2.5%): | |||||||||||
Consumer Discretionary (0.6%): | |||||||||||
Sri Trang Agro-Industry PCL | 57,200 | 51 | |||||||||
Financials (0.7%): | |||||||||||
Bangkok Life Assurance PCL, Class R | 67,700 | 34 | |||||||||
Thanachart Capital PCL | 25,000 | 29 | |||||||||
63 | |||||||||||
Industrials (1.2%): | |||||||||||
Gunkul Engineering PCL | 499,600 | 42 | |||||||||
Sino-Thai Engineering & Construction PCL | 118,200 | 59 | |||||||||
101 | |||||||||||
215 | |||||||||||
Turkey (2.8%): | |||||||||||
Consumer Discretionary (1.0%): | |||||||||||
Dogus Otomotiv Servis ve Ticaret A/S | 34,985 | 80 | |||||||||
Consumer Staples (0.6%): | |||||||||||
Coca-Cola Icecek A/S | 8,357 | 53 | |||||||||
Industrials (0.5%): | |||||||||||
Tekfen Holding A/S | 16,250 | 41 | |||||||||
Materials (0.7%): | |||||||||||
Anadolu Cam Sanayii A/S | 89,760 | 61 | |||||||||
235 | |||||||||||
Total Common Stocks (Cost $6,886) | 8,141 |
See notes to financial statements.
87
Victory Portfolios Victory Trivalent Emerging Markets Small-Cap Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Preferred Stocks (0.3%) | |||||||||||
Brazil (0.3%): | |||||||||||
Financials (0.3%): | |||||||||||
Banco do Estado do Rio Grande do Sul SA, Class B | 10,400 | $ | 26 | ||||||||
Total Preferred Stocks (Cost $49) | 26 | ||||||||||
Rights (0.0%) (h) | |||||||||||
Taiwan (0.0%): (h) | |||||||||||
Information Technology (0.0%): (h) | |||||||||||
Simplo Technology Co. Ltd. Expires 3/26/21 (a) (d) (e) | 241 | — | (g) | ||||||||
Total Rights (Cost $—) | — | (g) | |||||||||
Exchange-Traded Funds (2.3%) | |||||||||||
United States (2.3%): | |||||||||||
iShares MSCI Emerging Markets Small-Cap ETF | 4,950 | 193 | |||||||||
Total Exchange-Traded Funds (Cost $195) | 193 | ||||||||||
Collateral for Securities Loaned^ (2.9%) | |||||||||||
United States (2.9%): | |||||||||||
BlackRock Liquidity Funds TempFund Portfolio, Institutional Class, 0.28% (i) | 4,131 | 4 | |||||||||
Fidelity Investments Money Market Government Portfolio, Class I, 0.09% (i) | 125,042 | 125 | |||||||||
Goldman Sachs Financial Square Prime Obligations Fund, Institutional Class, 0.30% (i) | 28,730 | 29 | |||||||||
JPMorgan Prime Money Market Fund, Capital Class, 0.43% (i) | 16,440 | 16 | |||||||||
Morgan Stanley Institutional Liquidity Prime Portfolio, Institutional Class, 0.41% (i) | 73,919 | 74 | |||||||||
Total Collateral for Securities Loaned (Cost $248) | 248 | ||||||||||
Total Investments (Cost $7,378) — 102.1% | 8,608 | ||||||||||
Liabilities in excess of other assets — (2.1)% | (180 | ) | |||||||||
NET ASSETS — 100.00% | $ | 8,428 |
^ Purchased with cash collateral from securities on loan.
(a) Non-income producing security.
(b) All or a portion of this security is on loan.
(c) Rule 144A security or other security that is restricted as to resale to institutional investors. The Fund's Adviser has deemed this security to be liquid based upon procedures approved by the Board of Trustees. As of June 30, 2020, the fair value of these securities was $178 (thousands) and amounted to 2.1% of net assets.
(d) The Fund's Adviser has deemed this security to be illiquid based upon procedures approved by the Board of Trustees. As of June 30, 2020, illiquid securities were 1.4% of the Fund's net assets.
(e) Security was fair valued based upon procedures approved by the Board of Trustees and represents 0.3% of the Fund's net assets as of June 30, 2020. This security is classified as Level 3 within the fair value hierarchy. (See Note 2)
See notes to financial statements.
88
Victory Portfolios Victory Trivalent Emerging Markets Small-Cap Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
(f) Security was fair valued based upon procedures approved by the Board of Trustees and represents 1.1% of the Fund's net assets as of June 30, 2020. (See Note 2)
(g) Rounds to less than $1 thousand.
(h) Amount represents less than 0.05% of net assets.
(i) Rate disclosed is the daily yield on June 30, 2020.
ADR — American Depositary Receipt
ETF — Exchange-Traded Fund
GDR — Global Depositary Receipt
PCL — Public Company Limited
PLC — Public Limited Company
REIT — Real Estate Investment Trust
See notes to financial statements.
89
Victory Portfolios Victory Trivalent International Fund-Core Equity | Schedule of Portfolio Investments June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Common Stocks (96.2%) | |||||||||||
Australia (4.1%): | |||||||||||
Consumer Discretionary (0.3%): | |||||||||||
Aristocrat Leisure Ltd. | 20,413 | $ | 365 | ||||||||
Energy (0.5%): | |||||||||||
Beach Energy Ltd. | 642,184 | 686 | |||||||||
Financials (1.0%): | |||||||||||
Australia & New Zealand Banking Group Ltd. | 22,832 | 296 | |||||||||
Macquarie Group Ltd. | 12,973 | 1,077 | |||||||||
1,373 | |||||||||||
Industrials (0.3%): | |||||||||||
Aurizon Holdings Ltd. | 124,010 | 422 | |||||||||
Materials (1.4%): | |||||||||||
Rio Tinto Ltd. | 27,379 | 1,874 | |||||||||
Real Estate (0.6%): | |||||||||||
Charter Hall Group | 57,789 | 391 | |||||||||
Stockland | 161,515 | 375 | |||||||||
766 | |||||||||||
5,486 | |||||||||||
Austria (0.2%): | |||||||||||
Financials (0.2%): | |||||||||||
Raiffeisen Bank International AG (a) | 17,407 | 311 | |||||||||
Belgium (1.0%): | |||||||||||
Financials (0.3%): | |||||||||||
KBC Group NV | 6,537 | 375 | |||||||||
Health Care (0.7%): | |||||||||||
UCB SA | 7,686 | 892 | |||||||||
1,267 | |||||||||||
Brazil (0.4%): | |||||||||||
Financials (0.4%): | |||||||||||
Banco Santander Brasil SA | 105,300 | 543 | |||||||||
Canada (4.9%): | |||||||||||
Consumer Staples (0.4%): | |||||||||||
Maple Leaf Foods, Inc. (b) | 28,604 | 601 | |||||||||
Energy (0.8%): | |||||||||||
Parex Resources, Inc. (a) | 53,684 | 647 | |||||||||
Suncor Energy, Inc. | 22,397 | 377 | |||||||||
1,024 |
See notes to financial statements.
90
Victory Portfolios Victory Trivalent International Fund-Core Equity | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Financials (2.2%): | |||||||||||
Bank of Montreal | 8,882 | $ | 473 | ||||||||
iA Financial Corp., Inc. | 14,077 | 471 | |||||||||
IGM Financial, Inc. | 23,723 | 577 | |||||||||
National Bank of Canada | 15,664 | 710 | |||||||||
Sun Life Financial, Inc. | 19,321 | 710 | |||||||||
2,941 | |||||||||||
Industrials (0.6%): | |||||||||||
Canadian Pacific Railway Ltd. | 3,010 | 766 | |||||||||
Materials (0.9%): | |||||||||||
Barrick Gold Corp. | 24,272 | 653 | |||||||||
Kirkland Lake Gold Ltd. | 12,526 | 516 | |||||||||
1,169 | |||||||||||
6,501 | |||||||||||
China (8.2%): | |||||||||||
Communication Services (2.4%): | |||||||||||
NetEase, Inc., ADR | 1,658 | 712 | |||||||||
Tencent Holdings Ltd. | 39,400 | 2,525 | |||||||||
3,237 | |||||||||||
Consumer Discretionary (2.8%): | |||||||||||
Alibaba Group Holding Ltd., ADR (a) | 14,916 | 3,217 | |||||||||
JD.com, Inc., ADR (a) | 8,284 | 499 | |||||||||
3,716 | |||||||||||
Financials (1.4%): | |||||||||||
Bank of China Ltd., Class H (a) | 1,694,275 | 627 | |||||||||
Industrial & Commercial Bank of China Ltd., Class H | 1,379,250 | 834 | |||||||||
Ping An Insurance Group Co. of China Ltd. | 41,000 | 409 | |||||||||
1,870 | |||||||||||
Industrials (0.4%): | |||||||||||
China Railway Group Ltd., Class H | 912,000 | 471 | |||||||||
Materials (0.8%): | |||||||||||
Anhui Conch Cement Co. Ltd., Class H | 165,000 | 1,118 | |||||||||
Real Estate (0.4%): | |||||||||||
Country Garden Holdings Co. Ltd. | 401,000 | 497 | |||||||||
10,909 | |||||||||||
Denmark (1.3%): | |||||||||||
Consumer Staples (0.4%): | |||||||||||
Carlsberg A/S, Class B | 4,023 | 534 | |||||||||
Health Care (0.3%): | |||||||||||
Novo Nordisk A/S, Class B | 6,975 | 454 |
See notes to financial statements.
91
Victory Portfolios Victory Trivalent International Fund-Core Equity | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Utilities (0.6%): | |||||||||||
Orsted A/S (c) | 6,649 | $ | 769 | ||||||||
1,757 | |||||||||||
Finland (0.2%): | |||||||||||
Industrials (0.2%): | |||||||||||
Metso Oyj (b) | 9,426 | 310 | |||||||||
France (7.5%): | |||||||||||
Communication Services (0.3%): | |||||||||||
Vivendi SA | 18,493 | 478 | |||||||||
Consumer Discretionary (1.1%): | |||||||||||
Kering SA | 743 | 406 | |||||||||
LVMH Moet Hennessy Louis Vuitton SE | 2,523 | 1,114 | |||||||||
1,520 | |||||||||||
Consumer Staples (0.3%): | |||||||||||
L'Oreal SA (a) (b) | 1,262 | 407 | |||||||||
Energy (0.7%): | |||||||||||
TOTAL SA (b) | 23,183 | 894 | |||||||||
Financials (1.0%): | |||||||||||
Amundi SA (c) | 5,396 | 424 | |||||||||
AXA SA (a) | 14,525 | 306 | |||||||||
BNP Paribas SA (a) | 13,723 | 548 | |||||||||
1,278 | |||||||||||
Health Care (1.0%): | |||||||||||
Sanofi | 8,716 | 889 | |||||||||
Sartorius Stedim Biotech | 1,531 | 388 | |||||||||
1,277 | |||||||||||
Industrials (1.4%): | |||||||||||
Alstom SA | 8,674 | 404 | |||||||||
Cie de Saint-Gobain | 11,432 | 412 | |||||||||
Teleperformance (a) | 2,511 | 639 | |||||||||
Vinci SA | 4,342 | 403 | |||||||||
1,858 | |||||||||||
Information Technology (0.9%): | |||||||||||
Capgemini SE | 5,180 | 598 | |||||||||
Worldline SA (a) (c) | 6,322 | 551 | |||||||||
1,149 | |||||||||||
Materials (0.4%): | |||||||||||
Arkema SA | 5,099 | 490 | |||||||||
Real Estate (0.2%): | |||||||||||
Nexity SA | 8,572 | 279 | |||||||||
Utilities (0.2%): | |||||||||||
Rubis SCA | 6,862 | 331 | |||||||||
9,961 |
See notes to financial statements.
92
Victory Portfolios Victory Trivalent International Fund-Core Equity | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Germany (5.6%): | |||||||||||
Communication Services (0.4%): | |||||||||||
Deutsche Telekom AG | 30,610 | $ | 514 | ||||||||
Consumer Discretionary (0.6%): | |||||||||||
HelloFresh SE (a) | 13,592 | 727 | |||||||||
Financials (1.2%): | |||||||||||
Allianz SE | 3,958 | 809 | |||||||||
Hannover Rueck SE | 4,700 | 812 | |||||||||
1,621 | |||||||||||
Health Care (0.5%): | |||||||||||
Fresenius Medical Care AG & Co. KGaA (a) | 7,815 | 672 | |||||||||
Industrials (0.5%): | |||||||||||
Deutsche Post AG, Registered Shares (a) | 18,832 | 691 | |||||||||
Information Technology (0.9%): | |||||||||||
SAP SE | 4,639 | 649 | |||||||||
TeamViewer AG (a) (c) | 10,835 | 590 | |||||||||
1,239 | |||||||||||
Materials (0.2%): | |||||||||||
HeidelbergCement AG | 4,867 | 261 | |||||||||
Real Estate (0.7%): | |||||||||||
alstria office REIT-AG (a) | 22,631 | 337 | |||||||||
LEG Immobilien AG (a) | 4,421 | 560 | |||||||||
897 | |||||||||||
Utilities (0.6%): | |||||||||||
E.ON SE | 73,375 | 828 | |||||||||
7,450 | |||||||||||
Hong Kong (3.9%): | |||||||||||
Communication Services (0.6%): | |||||||||||
HKT Trust & HKT Ltd. | 269,000 | 395 | |||||||||
NetDragon Websoft Holdings Ltd. | 131,000 | 369 | |||||||||
764 | |||||||||||
Consumer Staples (1.4%): | |||||||||||
Sun Art Retail Group Ltd. | 464,000 | 796 | |||||||||
Vinda International Holdings Ltd. | 137,000 | 492 | |||||||||
WH Group Ltd. (c) | 675,500 | 584 | |||||||||
1,872 | |||||||||||
Energy (0.6%): | |||||||||||
CNOOC Ltd. | 389,000 | 436 | |||||||||
Kunlun Energy Co. Ltd. | 586,000 | 384 | |||||||||
820 | |||||||||||
Financials (0.4%): | |||||||||||
BOC Hong Kong Holdings Ltd. | 166,000 | 532 |
See notes to financial statements.
93
Victory Portfolios Victory Trivalent International Fund-Core Equity | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Industrials (0.5%): | |||||||||||
CK Hutchison Holdings Ltd. | 98,500 | $ | 638 | ||||||||
Real Estate (0.2%): | |||||||||||
CK Asset Holdings Ltd. | 54,895 | 329 | |||||||||
Utilities (0.2%): | |||||||||||
China Water Affairs Group Ltd. | 384,000 | 278 | |||||||||
5,233 | |||||||||||
Hungary (0.4%): | |||||||||||
Financials (0.4%): | |||||||||||
OTP Bank Nyrt (a) | 15,026 | 529 | |||||||||
India (2.3%): | |||||||||||
Energy (0.5%): | |||||||||||
Reliance Industries Ltd. | 28,022 | 638 | |||||||||
Financials (0.6%): | |||||||||||
HDFC Bank Ltd. | 30,130 | 423 | |||||||||
Muthoot Finance Ltd. | 25,673 | 370 | |||||||||
793 | |||||||||||
Health Care (0.5%): | |||||||||||
Ipca Laboratories Ltd. | 32,983 | 732 | |||||||||
Information Technology (0.4%): | |||||||||||
HCL Technologies Ltd. | 64,669 | 477 | |||||||||
Utilities (0.3%): | |||||||||||
Power Grid Corp. of India Ltd. | 160,547 | 373 | |||||||||
3,013 | |||||||||||
Indonesia (0.5%): | |||||||||||
Communication Services (0.3%): | |||||||||||
PT Sarana Menara Nusantara Tbk | 6,041,200 | 435 | |||||||||
Industrials (0.2%): | |||||||||||
PT Wijaya Karya (Persero) Tbk | 2,128,800 | 181 | |||||||||
616 | |||||||||||
Ireland (0.7%): | |||||||||||
Health Care (0.7%): | |||||||||||
ICON PLC (a) | 5,368 | 904 | |||||||||
Italy (1.4%): | |||||||||||
Industrials (0.2%): | |||||||||||
Leonardo SpA | 34,495 | 230 | |||||||||
Utilities (1.2%): | |||||||||||
ACEA SpA | 24,972 | 480 | |||||||||
Enel SpA | 129,365 | 1,119 | |||||||||
1,599 | |||||||||||
1,829 |
See notes to financial statements.
94
Victory Portfolios Victory Trivalent International Fund-Core Equity | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Japan (16.8%): | |||||||||||
Communication Services (2.1%): | |||||||||||
KDDI Corp. | 25,700 | $ | 767 | ||||||||
Nexon Co. Ltd. | 31,400 | 709 | |||||||||
Nintendo Co. Ltd. | 1,400 | 626 | |||||||||
Nippon Telegraph & Telephone Corp. | 32,500 | 757 | |||||||||
2,859 | |||||||||||
Consumer Discretionary (2.6%): | |||||||||||
Koito Manufacturing Co. Ltd. | 8,900 | 360 | |||||||||
Sony Corp. | 30,600 | 2,113 | |||||||||
Toyota Motor Corp. | 15,200 | 956 | |||||||||
3,429 | |||||||||||
Consumer Staples (1.2%): | |||||||||||
Matsumotokiyoshi Holdings Co. Ltd. | 10,800 | 393 | |||||||||
Nippon Suisan Kaisha Ltd. | 88,500 | 385 | |||||||||
Toyo Suisan Kaisha Ltd. | 15,300 | 855 | |||||||||
1,633 | |||||||||||
Financials (1.9%): | |||||||||||
Mizuho Financial Group, Inc. | 254,800 | 313 | |||||||||
ORIX Corp. | 59,400 | 738 | |||||||||
Shinsei Bank Ltd. | 25,300 | 306 | |||||||||
Sumitomo Mitsui Financial Group, Inc. | 15,625 | 441 | |||||||||
Sumitomo Mitsui Trust Holdings, Inc. | 10,600 | 299 | |||||||||
Tokio Marine Holdings, Inc. | 9,200 | 403 | |||||||||
2,500 | |||||||||||
Health Care (1.6%): | |||||||||||
Astellas Pharma, Inc. | 46,500 | 777 | |||||||||
Hoya Corp. | 4,400 | 421 | |||||||||
Ono Pharmaceutical Co. Ltd. | 13,700 | 400 | |||||||||
Shionogi & Co. Ltd. | 8,500 | 533 | |||||||||
2,131 | |||||||||||
Industrials (3.0%): | |||||||||||
Central Japan Railway Co. | 2,200 | 340 | |||||||||
ITOCHU Corp. | 54,300 | 1,175 | |||||||||
Mitsubishi Electric Corp. | 37,100 | 485 | |||||||||
Mitsui & Co. Ltd. | 33,000 | 489 | |||||||||
Obayashi Corp. | 44,800 | 421 | |||||||||
Secom Co. Ltd. | 6,600 | 579 | |||||||||
Taisei Corp. | 12,400 | 452 | |||||||||
3,941 | |||||||||||
Information Technology (2.7%): | |||||||||||
Advantest Corp. | 12,600 | 719 | |||||||||
Anritsu Corp. | 17,100 | 406 | |||||||||
Fujitsu Ltd. | 5,900 | 691 | |||||||||
Hitachi Ltd. | 14,500 | 461 |
See notes to financial statements.
95
Victory Portfolios Victory Trivalent International Fund-Core Equity | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Murata Manufacturing Co. Ltd. | 12,700 | $ | 749 | ||||||||
Obic Co. Ltd. | 3,100 | 546 | |||||||||
3,572 | |||||||||||
Materials (0.9%): | |||||||||||
Rengo Co. Ltd. | 48,500 | 395 | |||||||||
Shin-Etsu Chemical Co. Ltd. | 3,600 | 423 | |||||||||
Tosoh Corp. | 27,900 | 383 | |||||||||
1,201 | |||||||||||
Real Estate (0.6%): | |||||||||||
Daiwa House Industry Co. Ltd. | 16,200 | 383 | |||||||||
Open House Co. Ltd. | 12,100 | 415 | |||||||||
798 | |||||||||||
Utilities (0.2%): | |||||||||||
The Kansai Electric Power Co., Inc. | 35,200 | 341 | |||||||||
22,405 | |||||||||||
Jersey (0.6%): | |||||||||||
Consumer Discretionary (0.3%): | |||||||||||
boohoo Group PLC (a) | 78,745 | 403 | |||||||||
Materials (0.3%): | |||||||||||
Centamin PLC | 199,556 | 456 | |||||||||
859 | |||||||||||
Korea, Republic Of (3.5%): | |||||||||||
Communication Services (0.5%): | |||||||||||
NCSoft Corp. | 839 | 624 | |||||||||
Consumer Staples (0.7%): | |||||||||||
GS Retail Co. Ltd. | 11,733 | 359 | |||||||||
Orion Corp. | 5,434 | 608 | |||||||||
967 | |||||||||||
Health Care (0.4%): | |||||||||||
Seegene, Inc. | 5,430 | 506 | |||||||||
Industrials (0.3%): | |||||||||||
Samsung Engineering Co. Ltd. (a) | 44,574 | 459 | |||||||||
Information Technology (1.6%): | |||||||||||
LG Innotek Co. Ltd. | 6,481 | 951 | |||||||||
Samsung Electronics Co. Ltd. | 26,439 | 1,170 | |||||||||
2,121 | |||||||||||
4,677 | |||||||||||
Malaysia (0.5%): | |||||||||||
Financials (0.5%): | |||||||||||
RHB Bank Bhd | 616,700 | 692 |
See notes to financial statements.
96
Victory Portfolios Victory Trivalent International Fund-Core Equity | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Mexico (0.3%): | |||||||||||
Industrials (0.3%): | |||||||||||
Grupo Aeroportuario del Centro Norte SAB de CV (a) | 75,180 | $ | 350 | ||||||||
Netherlands (3.2%): | |||||||||||
Consumer Discretionary (0.7%): | |||||||||||
Prosus NV (a) | 10,501 | 979 | |||||||||
Consumer Staples (0.8%): | |||||||||||
Koninklijke Ahold Delhaize NV | 38,771 | 1,057 | |||||||||
Financials (1.0%): | |||||||||||
Euronext NV (c) | 5,985 | 602 | |||||||||
ING Groep NV | 36,149 | 252 | |||||||||
NN Group NV | 14,014 | 471 | |||||||||
1,325 | |||||||||||
Industrials (0.4%): | |||||||||||
Wolters Kluwer NV | 6,461 | 505 | |||||||||
Information Technology (0.3%): | |||||||||||
ASML Holding NV | 1,207 | 441 | |||||||||
4,307 | |||||||||||
Portugal (0.5%): | |||||||||||
Communication Services (0.2%): | |||||||||||
NOS SGPS SA (a) | 60,497 | 264 | |||||||||
Energy (0.3%): | |||||||||||
Galp Energia SGPS SA | 40,456 | 469 | |||||||||
733 | |||||||||||
Russian Federation (1.0%): | |||||||||||
Energy (0.5%): | |||||||||||
LUKOIL PJSC, ADR | 8,535 | 634 | |||||||||
Financials (0.3%): | |||||||||||
Sberbank of Russia PJSC | 147,370 | 422 | |||||||||
Materials (0.2%): | |||||||||||
Polymetal International PLC | 16,990 | 340 | |||||||||
1,396 | |||||||||||
Singapore (0.7%): | |||||||||||
Financials (0.7%): | |||||||||||
DBS Group Holdings Ltd. | 25,800 | 388 | |||||||||
Singapore Exchange Ltd. | 81,100 | 488 | |||||||||
876 | |||||||||||
South Africa (1.0%): | |||||||||||
Communication Services (0.6%): | |||||||||||
Naspers Ltd., Class N | 4,450 | 818 |
See notes to financial statements.
97
Victory Portfolios Victory Trivalent International Fund-Core Equity | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Materials (0.4%): | |||||||||||
Kumba Iron Ore Ltd. | 16,844 | $ | 451 | ||||||||
1,269 | |||||||||||
Spain (0.8%): | |||||||||||
Consumer Discretionary (0.3%): | |||||||||||
Industria de Diseno Textil SA | 14,493 | 384 | |||||||||
Industrials (0.5%): | |||||||||||
ACS Actividades de Construccion y Servicios SA | 24,542 | 631 | |||||||||
1,015 | |||||||||||
Sweden (3.5%): | |||||||||||
Consumer Staples (1.1%): | |||||||||||
Essity AB, Class B (a) | 21,418 | 694 | |||||||||
Swedish Match AB | 11,502 | 812 | |||||||||
1,506 | |||||||||||
Financials (0.3%): | |||||||||||
Skandinaviska Enskilda Banken AB, Class A (a) | 52,300 | 454 | |||||||||
Industrials (1.0%): | |||||||||||
Sandvik AB (a) | 22,907 | 431 | |||||||||
SKF AB, Class B | 24,101 | 451 | |||||||||
Volvo AB, Class B | 29,921 | 471 | |||||||||
1,353 | |||||||||||
Information Technology (0.4%): | |||||||||||
Telefonaktiebolaget LM Ericsson, Class B | 53,359 | 495 | |||||||||
Materials (0.4%): | |||||||||||
Boliden AB | 20,735 | 476 | |||||||||
Real Estate (0.3%): | |||||||||||
Fastighets AB Balder, Class B (a) | 10,649 | 408 | |||||||||
4,692 | |||||||||||
Switzerland (8.3%): | |||||||||||
Consumer Staples (2.1%): | |||||||||||
Coca-Cola HBC AG | 12,142 | 304 | |||||||||
Nestle SA, Registered Shares | 22,135 | 2,455 | |||||||||
2,759 | |||||||||||
Financials (1.0%): | |||||||||||
Julius Baer Group Ltd. | 8,837 | 371 | |||||||||
Swiss Life Holding AG | 2,797 | 1,041 | |||||||||
1,412 | |||||||||||
Health Care (4.1%): | |||||||||||
Galenica AG (c) | 8,057 | 578 | |||||||||
Lonza Group AG, Registered Shares | 1,390 | 736 | |||||||||
Novartis AG, Registered Shares (b) | 19,158 | 1,669 |
See notes to financial statements.
98
Victory Portfolios Victory Trivalent International Fund-Core Equity | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Roche Holding AG | 7,014 | $ | 2,431 | ||||||||
5,414 | |||||||||||
Information Technology (1.1%): | |||||||||||
Logitech International SA, Class R | 13,293 | 872 | |||||||||
STMicroelectronics NV | 23,454 | 639 | |||||||||
1,511 | |||||||||||
11,096 | |||||||||||
Taiwan (3.6%): | |||||||||||
Financials (0.8%): | |||||||||||
Chailease Holding Co. Ltd. | 116,935 | 499 | |||||||||
Fubon Financial Holding Co. Ltd. | 403,000 | 602 | |||||||||
1,101 | |||||||||||
Information Technology (2.8%): | |||||||||||
Accton Technology Corp. | 113,000 | 878 | |||||||||
Radiant Opto-Electronics Corp. | 121,000 | 490 | |||||||||
Realtek Semiconductor Corp. | 96,000 | 979 | |||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 121,000 | 1,292 | |||||||||
3,639 | |||||||||||
4,740 | |||||||||||
Thailand (0.4%): | |||||||||||
Consumer Staples (0.4%): | |||||||||||
Charoen Pokphand Foods PCL | 539,200 | 556 | |||||||||
United Arab Emirates (0.3%): | |||||||||||
Financials (0.3%): | |||||||||||
Emirates NBD Bank PJSC | 154,126 | 375 | |||||||||
United Kingdom (8.2%): | |||||||||||
Communication Services (0.3%): | |||||||||||
Vodafone Group PLC | 270,297 | 430 | |||||||||
Consumer Discretionary (0.5%): | |||||||||||
Barratt Developments PLC | 65,607 | 403 | |||||||||
Fiat Chrysler Automobiles NV (a) | 26,914 | 272 | |||||||||
675 | |||||||||||
Consumer Staples (1.6%): | |||||||||||
British American Tobacco PLC | 19,390 | 744 | |||||||||
Tate & Lyle PLC | 54,454 | 450 | |||||||||
Tesco PLC | 345,116 | 970 | |||||||||
2,164 | |||||||||||
Energy (0.9%): | |||||||||||
BP PLC | 230,837 | 884 | |||||||||
Cairn Energy PLC (a) | 198,974 | 290 | |||||||||
1,174 |
See notes to financial statements.
99
Victory Portfolios Victory Trivalent International Fund-Core Equity | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Financials (1.4%): | |||||||||||
3i Group PLC | 74,413 | $ | 766 | ||||||||
Barclays PLC | 221,912 | 313 | |||||||||
HSBC Holdings PLC | 65,516 | 304 | |||||||||
Legal & General Group PLC | 158,764 | 433 | |||||||||
1,816 | |||||||||||
Health Care (1.0%): | |||||||||||
AstraZeneca PLC | 6,607 | 687 | |||||||||
Hikma Pharmaceuticals PLC | 24,045 | 660 | |||||||||
1,347 | |||||||||||
Industrials (1.3%): | |||||||||||
Ashtead Group PLC | 18,281 | 617 | |||||||||
BAE Systems PLC | 112,327 | 671 | |||||||||
RELX PLC | 16,590 | 384 | |||||||||
1,672 | |||||||||||
Materials (0.8%): | |||||||||||
Anglo American PLC | 46,022 | 1,061 | |||||||||
Utilities (0.4%): | |||||||||||
Atlantica Sustainable Infrastructure PLC | 17,868 | 520 | |||||||||
10,859 | |||||||||||
United States (0.4%): | |||||||||||
Consumer Discretionary (0.4%): | |||||||||||
Yum China Holdings, Inc. | 10,130 | 487 | |||||||||
Total Common Stocks (Cost $126,611) | 128,003 | ||||||||||
Preferred Stocks (1.4%) | |||||||||||
Brazil (0.5%): | |||||||||||
Communication Services (0.3%): | |||||||||||
Telefonica Brasil SA | 40,400 | 357 | |||||||||
Energy (0.2%): | |||||||||||
Petroleo Brasileiro SA | 86,700 | 344 | |||||||||
701 | |||||||||||
Germany (0.9%): | |||||||||||
Consumer Discretionary (0.9%): | |||||||||||
Volkswagen AG (a) | 7,389 | 1,123 | |||||||||
Total Preferred Stocks (Cost $2,238) | 1,824 | ||||||||||
Rights (0.0%) (d) | |||||||||||
Spain (0.0%): (d) | |||||||||||
Industrials (0.0%): (d) | |||||||||||
ACS Actividades de Construccion y Servicios SA Expires 7/8/20 (a) | 23,603 | 37 | |||||||||
Total Rights (Cost $37) | 37 |
See notes to financial statements.
100
Victory Portfolios Victory Trivalent International Fund-Core Equity | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Exchange-Traded Funds (1.4%) | |||||||||||
United States (1.4%): | |||||||||||
iShares Core MSCI EAFE ETF | 23,694 | $ | 1,354 | ||||||||
iShares Core MSCI Emerging Markets ETF | 10,668 | 508 | |||||||||
1,862 | |||||||||||
Total Exchange-Traded Funds (Cost $2,098) | 1,862 | ||||||||||
Collateral for Securities Loaned^ (2.0%) | |||||||||||
United States (2.0%): | |||||||||||
BlackRock Liquidity Funds TempFund Portfolio, Institutional Class, 0.28% (e) | 46,201 | 46 | |||||||||
Fidelity Investments Money Market Government Portfolio, Class I, 0.09% (e) | 1,398,316 | 1,398 | |||||||||
Goldman Sachs Financial Square Prime Obligations Fund, Institutional Class, 0.30% (e) | 321,283 | 321 | |||||||||
JPMorgan Prime Money Market Fund, Capital Class, 0.43% (e) | 183,848 | 184 | |||||||||
Morgan Stanley Institutional Liquidity Prime Portfolio, Institutional Class, 0.41% (e) | 826,614 | 827 | |||||||||
Total Collateral for Securities Loaned (Cost $2,776) | 2,776 | ||||||||||
Total Investments (Cost $133,760) — 101.0% | 134,502 | ||||||||||
Liabilities in excess of other assets — (1.0)% | (1,362 | ) | |||||||||
NET ASSETS — 100.00% | $ | 133,140 |
^ Purchased with cash collateral from securities on loan.
(a) Non-income producing security.
(b) All or a portion of this security is on loan.
(c) Rule 144A security or other security that is restricted as to resale to institutional investors. The Fund's Adviser has deemed this security to be liquid based upon procedures approved by the Board of Trustees. As of June 30, 2020, the fair value of these securities was $4,098 (thousands) and amounted to 3.1% of net assets.
(d) Amount represents less than 0.05% of net assets.
(e) Rate disclosed is the daily yield on June 30, 2020.
ADR — American Depositary Receipt
ETF — Exchange-Traded Fund
PCL — Public Company Limited
PLC — Public Limited Company
REIT — Real Estate Investment Trust
See notes to financial statements.
101
Victory Portfolios Victory Trivalent International Small-Cap Fund | Schedule of Portfolio Investments June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Common Stocks (96.8%) | |||||||||||
Australia (6.8%): | |||||||||||
Consumer Discretionary (0.4%): | |||||||||||
JB Hi-Fi Ltd. (a) | 259,843 | $ | 7,772 | ||||||||
Energy (0.8%): | |||||||||||
Beach Energy Ltd. | 13,421,662 | 14,334 | |||||||||
Financials (0.3%): | |||||||||||
Magellan Financial Group Ltd. | 147,111 | 6,006 | |||||||||
Health Care (0.4%): | |||||||||||
Ansell Ltd. | 334,826 | 8,509 | |||||||||
Industrials (0.8%): | |||||||||||
Cleanaway Waste Management Ltd. | 4,673,237 | 7,173 | |||||||||
Seven Group Holdings Ltd. (a) | 601,200 | 7,229 | |||||||||
14,402 | |||||||||||
Information Technology (0.7%): | |||||||||||
Appen Ltd. (a) | 519,751 | 12,337 | |||||||||
Materials (2.6%): | |||||||||||
Mineral Resources Ltd. | 1,151,304 | 17,043 | |||||||||
Northern Star Resources Ltd. | 1,083,954 | 10,220 | |||||||||
OZ Minerals Ltd. | 1,118,601 | 8,592 | |||||||||
Saracen Mineral Holdings Ltd. (b) | 3,139,293 | 11,953 | |||||||||
47,808 | |||||||||||
Real Estate (0.8%): | |||||||||||
Charter Hall Group | 1,590,830 | 10,774 | |||||||||
Shopping Centres Australasia Property Group | 2,973,660 | 4,482 | |||||||||
15,256 | |||||||||||
126,424 | |||||||||||
Belgium (0.7%): | |||||||||||
Real Estate (0.7%): | |||||||||||
Warehouses De Pauw CVA | 444,803 | 12,219 | |||||||||
Canada (7.3%): | |||||||||||
Consumer Discretionary (0.3%): | |||||||||||
Canada Goose Holdings, Inc. (a) (b) | 256,124 | 5,934 | |||||||||
Consumer Staples (0.4%): | |||||||||||
Maple Leaf Foods, Inc. | 351,655 | 7,386 | |||||||||
Energy (0.6%): | |||||||||||
Parex Resources, Inc. (b) | 874,565 | 10,541 | |||||||||
Financials (0.3%): | |||||||||||
Canadian Western Bank (a) | 352,573 | 6,143 |
See notes to financial statements.
102
Victory Portfolios Victory Trivalent International Small-Cap Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Industrials (1.2%): | |||||||||||
Stantec, Inc. (a) | 362,149 | $ | 11,181 | ||||||||
TFI International, Inc. (a) | 314,315 | 11,159 | |||||||||
22,340 | |||||||||||
Information Technology (0.4%): | |||||||||||
The Descartes Systems Group, Inc. (a) (b) | 124,519 | 6,575 | |||||||||
Materials (2.0%): | |||||||||||
B2Gold Corp. (a) | 3,127,479 | 17,787 | |||||||||
Kirkland Lake Gold Ltd. | 149,599 | 6,161 | |||||||||
Pan American Silver Corp. (a) | 446,913 | 13,574 | |||||||||
37,522 | |||||||||||
Real Estate (1.5%): | |||||||||||
Canadian Apartment Properties REIT (a) | 209,765 | 7,509 | |||||||||
Real Matters, Inc. (b) | 721,210 | 14,069 | |||||||||
Tricon Capital Group, Inc. | 1,060,717 | 7,150 | |||||||||
28,728 | |||||||||||
Utilities (0.6%): | |||||||||||
Northland Power, Inc. (a) | 467,449 | 11,702 | |||||||||
136,871 | |||||||||||
Cayman Islands (0.3%): | |||||||||||
Consumer Discretionary (0.3%): | |||||||||||
Nexteer Automotive Group Ltd. (b) | 7,123,000 | 4,936 | |||||||||
Denmark (1.2%): | |||||||||||
Consumer Staples (0.3%): | |||||||||||
Royal Unibrew A/S (b) | 68,901 | 5,744 | |||||||||
Health Care (0.9%): | |||||||||||
Bavarian Nordic A/S (b) | 268,083 | 7,349 | |||||||||
GN Store Nord A/S | 164,289 | 8,796 | |||||||||
16,145 | |||||||||||
21,889 | |||||||||||
Finland (1.7%): | |||||||||||
Industrials (1.1%): | |||||||||||
Outotec Oyj | 1,315,418 | 7,294 | |||||||||
Valmet Oyj | 463,683 | 12,152 | |||||||||
19,446 | |||||||||||
Information Technology (0.3%): | |||||||||||
TietoEVRY Oyj (b) | 233,707 | 6,397 | |||||||||
Materials (0.3%): | |||||||||||
Kemira Oyj | 477,433 | 6,163 | |||||||||
32,006 | |||||||||||
France (7.1%): | |||||||||||
Communication Services (0.4%): | |||||||||||
Ubisoft Entertainment SA (b) | 77,331 | 6,403 |
See notes to financial statements.
103
Victory Portfolios Victory Trivalent International Small-Cap Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Consumer Discretionary (0.6%): | |||||||||||
Faurecia SE (b) | 158,581 | $ | 6,230 | ||||||||
La Francaise Des Jeux SAEM (a) (c) | 171,317 | 5,295 | |||||||||
11,525 | |||||||||||
Financials (0.2%): | |||||||||||
SCOR SE (b) | 153,989 | 4,252 | |||||||||
Health Care (0.3%): | |||||||||||
Korian SA | 149,370 | 5,482 | |||||||||
Industrials (3.0%): | |||||||||||
Alstom SA | 154,388 | 7,194 | |||||||||
Eiffage SA (b) | 165,672 | 15,185 | |||||||||
Nexans SA | 237,097 | 11,030 | |||||||||
Teleperformance (b) | 90,637 | 23,082 | |||||||||
56,491 | |||||||||||
Information Technology (1.3%): | |||||||||||
Alten SA (b) | 74,278 | 6,418 | |||||||||
SOITEC (b) | 66,504 | 7,408 | |||||||||
Worldline SA (b) (c) | 124,033 | 10,813 | |||||||||
24,639 | |||||||||||
Materials (0.7%): | |||||||||||
Arkema SA | 123,568 | 11,877 | |||||||||
Real Estate (0.3%): | |||||||||||
Nexity SA | 188,324 | 6,125 | |||||||||
Utilities (0.3%): | |||||||||||
Rubis SCA | 112,114 | 5,405 | |||||||||
132,199 | |||||||||||
Germany (7.3%): | |||||||||||
Communication Services (0.3%): | |||||||||||
United Internet AG, Registered Shares | 131,984 | 5,607 | |||||||||
Consumer Discretionary (0.9%): | |||||||||||
HelloFresh SE (b) | 303,162 | 16,216 | |||||||||
Consumer Staples (0.4%): | |||||||||||
Suedzucker AG | 494,159 | 7,798 | |||||||||
Financials (0.6%): | |||||||||||
Deutsche Pfandbriefbank AG (b) (c) | 730,886 | 5,347 | |||||||||
DWS Group GmbH & Co. KGaA (b) (c) | 151,635 | 5,525 | |||||||||
10,872 | |||||||||||
Health Care (1.0%): | |||||||||||
Carl Zeiss Meditec AG (b) | 95,871 | 9,335 | |||||||||
Gerresheimer AG | 109,995 | 10,164 | |||||||||
19,499 |
See notes to financial statements.
104
Victory Portfolios Victory Trivalent International Small-Cap Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Industrials (1.2%): | |||||||||||
Brenntag AG | 121,033 | $ | 6,417 | ||||||||
Kion Group AG (b) | 145,295 | 8,945 | |||||||||
Rheinmetall AG | 83,275 | 7,236 | |||||||||
22,598 | |||||||||||
Information Technology (0.8%): | |||||||||||
Bechtle AG | 80,480 | 14,263 | |||||||||
Materials (0.4%): | |||||||||||
Aurubis AG | 115,251 | 7,124 | |||||||||
Real Estate (1.3%): | |||||||||||
alstria office REIT-AG (b) | 719,818 | 10,712 | |||||||||
TAG Immobilien AG | 566,928 | 13,540 | |||||||||
24,252 | |||||||||||
Utilities (0.4%): | |||||||||||
Encavis AG | 590,371 | 8,601 | |||||||||
136,830 | |||||||||||
Hong Kong (0.9%): | |||||||||||
Consumer Discretionary (0.3%): | |||||||||||
Xinyi Glass Holdings Ltd. | 4,496,000 | 5,549 | |||||||||
Health Care (0.3%): | |||||||||||
The United Laboratories International Holdings Ltd. | 7,476,000 | 6,475 | |||||||||
Utilities (0.3%): | |||||||||||
Towngas China Co. Ltd. | 11,311,000 | 5,130 | |||||||||
17,154 | |||||||||||
Ireland (1.1%): | |||||||||||
Consumer Discretionary (0.2%): | |||||||||||
Dalata Hotel Group PLC | 1,469,055 | 4,715 | |||||||||
Consumer Staples (0.3%): | |||||||||||
Glanbia PLC | 454,952 | 5,170 | |||||||||
Health Care (0.6%): | |||||||||||
UDG Healthcare PLC | 1,182,642 | 10,510 | |||||||||
20,395 | |||||||||||
Isle of Man (0.4%): | |||||||||||
Consumer Discretionary (0.4%): | |||||||||||
GVC Holdings PLC | 847,191 | 7,764 | |||||||||
Israel (0.3%): | |||||||||||
Financials (0.3%): | |||||||||||
Israel Discount Bank Ltd., Class A | �� | 1,907,443 | 5,822 | ||||||||
Italy (3.4%): | |||||||||||
Communication Services (0.4%): | |||||||||||
Infrastructure Wireless Italiane SpA (c) | 797,942 | 8,009 |
See notes to financial statements.
105
Victory Portfolios Victory Trivalent International Small-Cap Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Financials (0.3%): | |||||||||||
Banca Mediolanum SpA | 871,876 | $ | 6,274 | ||||||||
Health Care (0.8%): | |||||||||||
Amplifon SpA (a) (b) | 285,589 | 7,629 | |||||||||
DiaSorin SpA | 37,029 | 7,111 | |||||||||
14,740 | |||||||||||
Industrials (0.3%): | |||||||||||
Interpump Group SpA | 197,135 | 5,877 | |||||||||
Information Technology (0.4%): | |||||||||||
Reply SpA | 86,531 | 7,021 | |||||||||
Materials (0.6%): | |||||||||||
Buzzi Unicem SpA | 478,929 | 10,348 | |||||||||
Utilities (0.6%): | |||||||||||
ACEA SpA | 557,699 | 10,722 | |||||||||
62,991 | |||||||||||
Japan (22.0%): | |||||||||||
Communication Services (1.3%): | |||||||||||
Capcom Co. Ltd. | 280,700 | 10,276 | |||||||||
Dip Corp. | 266,600 | 5,416 | |||||||||
Internet Initiative Japan, Inc. | 240,400 | 8,227 | |||||||||
23,919 | |||||||||||
Consumer Discretionary (3.0%): | |||||||||||
Adastria Co. Ltd. | 352,900 | 5,612 | |||||||||
ASKUL Corp. | 186,500 | 5,991 | |||||||||
Paltac Corp. | 180,600 | 8,333 | |||||||||
Resorttrust, Inc. | 335,600 | 4,356 | |||||||||
Starts Corp., Inc. | 268,100 | 5,504 | |||||||||
Sumitomo Forestry Co. Ltd. | 413,900 | 5,208 | |||||||||
Sushiro Global Holdings Ltd. | 533,700 | 11,835 | |||||||||
Toyo Tire Corp. | 669,700 | 9,039 | |||||||||
55,878 | |||||||||||
Consumer Staples (1.5%): | |||||||||||
Matsumotokiyoshi Holdings Co. Ltd. | 139,100 | 5,056 | |||||||||
Nichirei Corp. | 269,100 | 7,843 | |||||||||
Nippon Suisan Kaisha Ltd. | 1,871,300 | 8,146 | |||||||||
Yaoko Co. Ltd. | 106,600 | 7,631 | |||||||||
28,676 | |||||||||||
Financials (1.2%): | |||||||||||
North Pacific Bank Ltd. | 2,902,900 | 5,613 | |||||||||
The Shiga Bank Ltd. | 342,200 | 7,622 | |||||||||
Zenkoku Hosho Co. Ltd. | 266,900 | 10,084 | |||||||||
23,319 |
See notes to financial statements.
106
Victory Portfolios Victory Trivalent International Small-Cap Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Health Care (1.7%): | |||||||||||
Eiken Chemical Co. Ltd. | 510,400 | $ | 8,171 | ||||||||
Japan Lifeline Co. Ltd. | 391,800 | 5,195 | |||||||||
Sawai Pharmaceutical Co. Ltd. | 172,200 | 8,852 | |||||||||
Ship Healthcare Holdings, Inc. | 205,800 | 8,614 | |||||||||
30,832 | |||||||||||
Industrials (5.1%): | |||||||||||
BayCurrent Consulting, Inc. | 86,000 | 7,192 | |||||||||
Daihen Corp. | 192,100 | 6,877 | |||||||||
Daiseki Co. Ltd. | 259,800 | 6,966 | |||||||||
Fuji Corp./Aichi | 457,800 | 8,044 | |||||||||
FULLCAST Holdings Co. Ltd. | 374,200 | 4,993 | |||||||||
Kanamoto Co. Ltd. | 295,300 | 6,469 | |||||||||
Kintetsu World Express, Inc. | 158,900 | 2,744 | |||||||||
Kumagai Gumi Co. Ltd. | 239,500 | 5,753 | |||||||||
Maeda Corp. | 865,500 | 6,625 | |||||||||
Penta-Ocean Construction Co. Ltd. | 1,561,300 | 8,433 | |||||||||
Sankyu, Inc. | 146,100 | 5,507 | |||||||||
Sanwa Holdings Corp. | 773,300 | 6,950 | |||||||||
Seino Holdings Co. Ltd. | 66,600 | 868 | |||||||||
Takasago Thermal Engineering Co. Ltd. | 432,600 | 6,364 | |||||||||
TechnoPro Holdings, Inc. | 99,600 | 5,751 | |||||||||
Toda Corp. | 914,200 | 5,915 | |||||||||
95,451 | |||||||||||
Information Technology (4.4%): | |||||||||||
Advantest Corp. | 108,800 | 6,210 | |||||||||
Anritsu Corp. (a) | 517,400 | 12,294 | |||||||||
Lasertec Corp. | 317,400 | 30,008 | |||||||||
NEC Networks & System Integration Corp. | 141,100 | 2,887 | |||||||||
Net One Systems Co. Ltd. | 265,200 | 8,853 | |||||||||
Taiyo Yuden Co. Ltd. | 267,400 | 8,363 | |||||||||
TIS, Inc. | 653,500 | 13,838 | |||||||||
82,453 | |||||||||||
Materials (1.9%): | |||||||||||
Denka Co. Ltd. | 211,700 | 5,190 | |||||||||
Fuso Chemical Co. Ltd. | 186,100 | 6,796 | |||||||||
Lintec Corp. | 213,800 | 5,096 | |||||||||
Rengo Co. Ltd. | 1,476,400 | 12,037 | |||||||||
Tokyo Steel Manufacturing Co. Ltd. | 989,700 | 5,700 | |||||||||
34,819 | |||||||||||
Real Estate (1.9%): | |||||||||||
Invincible Investment Corp. | 16,211 | 4,208 | |||||||||
Kenedix Office Investment Corp. | 1,276 | 7,131 | |||||||||
Nippon Accommodations Fund, Inc. | 1,815 | 10,497 | |||||||||
Open House Co. Ltd. | 379,400 | 13,012 | |||||||||
34,848 | |||||||||||
410,195 |
See notes to financial statements.
107
Victory Portfolios Victory Trivalent International Small-Cap Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Jersey (0.3%): | |||||||||||
Materials (0.3%): | |||||||||||
Centamin PLC | 2,729,887 | $ | 6,230 | ||||||||
Korea, Republic Of (4.8%): | |||||||||||
Communication Services (0.4%): | |||||||||||
Neowiz (b) | 324,726 | 7,527 | |||||||||
Consumer Discretionary (0.6%): | |||||||||||
F&F Co. Ltd. | 75,542 | 5,829 | |||||||||
GS Home Shopping, Inc. | 38,117 | 3,479 | |||||||||
SL Corp. (d) (e) | 261,434 | 2,399 | |||||||||
11,707 | |||||||||||
Consumer Staples (0.4%): | |||||||||||
Maeil Dairies Co. Ltd. | 101,544 | 6,722 | |||||||||
Health Care (1.1%): | |||||||||||
Seegene, Inc. | 220,978 | 20,581 | |||||||||
Industrials (0.3%): | |||||||||||
Samsung Engineering Co. Ltd. (b) | 508,001 | 5,236 | |||||||||
Information Technology (1.2%): | |||||||||||
Douzone Bizon Co. Ltd. | 135,389 | 11,568 | |||||||||
Partron Co. Ltd. | 738,850 | 5,509 | |||||||||
SFA Engineering Corp. | 223,757 | 6,122 | |||||||||
23,199 | |||||||||||
Materials (0.8%): | |||||||||||
Soulbrain Holdings Co. Ltd. (d) (f) | 182,581 | 14,589 | |||||||||
89,561 | |||||||||||
Luxembourg (1.2%): | |||||||||||
Consumer Discretionary (0.6%): | |||||||||||
B&M European Value Retail SA | 2,083,701 | 10,255 | |||||||||
Information Technology (0.6%): | |||||||||||
Globant SA (b) | 72,279 | 10,832 | |||||||||
21,087 | |||||||||||
Netherlands (4.8%): | |||||||||||
Consumer Discretionary (0.3%): | |||||||||||
Just Eat Takeaway.com NV (a) (b) (c) | 49,527 | 5,176 | |||||||||
Energy (0.4%): | |||||||||||
SBM Offshore NV | 522,757 | 7,703 | |||||||||
Financials (1.8%): | |||||||||||
ASR Nederland NV | 296,154 | 9,111 | |||||||||
Euronext NV (c) | 168,071 | 16,916 | |||||||||
Flow Traders (c) | 194,294 | 6,951 | |||||||||
32,978 | |||||||||||
Health Care (0.5%): | |||||||||||
Argenx SE (b) | 42,509 | 9,568 |
See notes to financial statements.
108
Victory Portfolios Victory Trivalent International Small-Cap Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Industrials (0.7%): | |||||||||||
Intertrust NV (c) | 397,215 | $ | 6,773 | ||||||||
Signify NV (b) (c) | 266,591 | 6,853 | |||||||||
13,626 | |||||||||||
Information Technology (1.1%): | |||||||||||
ASM International NV | 138,457 | 21,313 | |||||||||
90,364 | |||||||||||
Norway (0.3%): | |||||||||||
Financials (0.3%): | |||||||||||
Sparebanken Vest | 774,088 | 5,045 | |||||||||
Singapore (0.6%): | |||||||||||
Health Care (0.1%): | |||||||||||
Riverstone Holdings Ltd. | 554,100 | 1,045 | |||||||||
Real Estate (0.5%): | |||||||||||
Frasers Logistics & Industrial Trust | 11,109,400 | 9,572 | |||||||||
10,617 | |||||||||||
Spain (1.6%): | |||||||||||
Communication Services (0.1%): | |||||||||||
Masmovil Ibercom SA (b) | 53,140 | 1,362 | |||||||||
Consumer Staples (0.3%): | |||||||||||
Viscofan SA | 81,742 | 5,343 | |||||||||
Financials (0.3%): | |||||||||||
Bankinter SA | 1,342,766 | 6,435 | |||||||||
Industrials (0.6%): | |||||||||||
Applus Services SA | 497,238 | 3,830 | |||||||||
Cia de Distribucion Integral Logista Holdings SA | 374,192 | 7,010 | |||||||||
10,840 | |||||||||||
Real Estate (0.3%): | |||||||||||
Merlin Properties Socimi SA | 831,573 | 6,929 | |||||||||
30,909 | |||||||||||
Sweden (4.0%): | |||||||||||
Communication Services (1.2%): | |||||||||||
Nordic Entertainment Group AB, Class B | 183,020 | 5,631 | |||||||||
Stillfront Group AB (b) | 193,723 | 17,421 | |||||||||
23,052 | |||||||||||
Consumer Discretionary (1.3%): | |||||||||||
Dometic Group AB (c) | 710,209 | 6,420 | |||||||||
Evolution Gaming Group AB (c) | 286,293 | 17,010 | |||||||||
23,430 |
See notes to financial statements.
109
Victory Portfolios Victory Trivalent International Small-Cap Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Health Care (0.5%): | |||||||||||
Getinge AB, Class B | 478,833 | $ | 8,926 | ||||||||
Industrials (0.3%): | |||||||||||
Peab AB, Class B (b) | 711,030 | 5,879 | |||||||||
Real Estate (0.7%): | |||||||||||
Wihlborgs Fastigheter AB | 813,627 | 13,388 | |||||||||
74,675 | |||||||||||
Switzerland (7.6%): | |||||||||||
Consumer Discretionary (0.4%): | |||||||||||
Forbo Holding AG, Registered Shares | 5,204 | 7,557 | |||||||||
Consumer Staples (0.3%): | |||||||||||
Coca-Cola HBC AG | 242,010 | 6,057 | |||||||||
Financials (2.3%): | |||||||||||
Cembra Money Bank AG | 47,575 | 4,652 | |||||||||
Helvetia Holding AG, Registered Shares | 43,785 | 4,103 | |||||||||
Julius Baer Group Ltd. | 171,141 | 7,189 | |||||||||
Swiss Life Holding AG | 39,034 | 14,525 | |||||||||
Vontobel Holding AG, Class R | 163,136 | 11,491 | |||||||||
41,960 | |||||||||||
Health Care (0.8%): | |||||||||||
Galenica AG (c) | 140,628 | 10,085 | |||||||||
Straumann Holding AG, Class R (a) | 6,599 | 5,706 | |||||||||
15,791 | |||||||||||
Industrials (1.6%): | |||||||||||
Adecco Group AG | 123,713 | 5,833 | |||||||||
Bucher Industries AG, Registered Shares | 20,199 | 5,836 | |||||||||
Sulzer AG, Registered Shares | 114,919 | 9,219 | |||||||||
Wizz Air Holdings PLC (b) (c) | 216,620 | 8,948 | |||||||||
29,836 | |||||||||||
Information Technology (1.6%): | |||||||||||
Logitech International SA, Class R | 449,039 | 29,433 | |||||||||
Real Estate (0.6%): | |||||||||||
PSP Swiss Property AG, Registered Shares | 94,206 | 10,614 | |||||||||
141,248 | |||||||||||
United Kingdom (11.1%): | |||||||||||
Communication Services (0.8%): | |||||||||||
Auto Trader Group PLC (c) | 1,150,162 | 7,487 | |||||||||
Future PLC | 446,209 | 7,042 | |||||||||
14,529 | |||||||||||
Consumer Discretionary (0.9%): | |||||||||||
Bellway PLC | 142,822 | 4,498 | |||||||||
Gamesys Group PLC (b) | 593,490 | 6,296 | |||||||||
Redrow PLC | 1,179,072 | 6,287 | |||||||||
17,081 |
See notes to financial statements.
110
Victory Portfolios Victory Trivalent International Small-Cap Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Consumer Staples (1.2%): | |||||||||||
Cranswick PLC | 167,263 | $ | 7,491 | ||||||||
Stock Spirits Group PLC | 2,273,608 | 6,580 | |||||||||
Tate & Lyle PLC | 1,095,994 | 9,059 | |||||||||
23,130 | |||||||||||
Energy (0.4%): | |||||||||||
Cairn Energy PLC (b) | 4,953,129 | 7,207 | |||||||||
Financials (1.0%): | |||||||||||
IG Group Holdings PLC | 544,325 | 5,496 | |||||||||
Intermediate Capital Group PLC | 360,087 | 5,744 | |||||||||
OneSavings Bank PLC | 1,950,776 | 6,411 | |||||||||
17,651 | |||||||||||
Health Care (1.1%): | |||||||||||
Clinigen Group PLC | 914,664 | 9,165 | |||||||||
Hikma Pharmaceuticals PLC | 400,744 | 10,995 | |||||||||
20,160 | |||||||||||
Industrials (1.9%): | |||||||||||
HomeServe PLC | 634,269 | 10,253 | |||||||||
Howden Joinery Group PLC | 804,422 | 5,506 | |||||||||
IMI PLC | 484,641 | 5,528 | |||||||||
National Express Group PLC | 1,731,688 | 4,030 | |||||||||
Ultra Electronics Holdings PLC | 227,582 | 5,611 | |||||||||
Vesuvius PLC | 1,114,255 | 5,346 | |||||||||
36,274 | |||||||||||
Information Technology (1.8%): | |||||||||||
Avast PLC (c) | 1,192,287 | 7,791 | |||||||||
Computacenter PLC | 510,546 | 10,346 | |||||||||
Electrocomponents PLC | 787,915 | 6,558 | |||||||||
Spirent Communications PLC | 2,953,254 | 8,834 | |||||||||
33,529 | |||||||||||
Real Estate (1.6%): | |||||||||||
LondonMetric Property PLC | 3,513,021 | 9,169 | |||||||||
Safestore Holdings PLC | 1,454,417 | 13,107 | |||||||||
The Unite Group PLC | 675,938 | 7,870 | |||||||||
30,146 | |||||||||||
Utilities (0.4%): | |||||||||||
Atlantica Sustainable Infrastructure PLC | 242,223 | 7,049 | |||||||||
206,756 | |||||||||||
Total Common Stocks (Cost $1,505,488) | 1,804,187 |
See notes to financial statements.
111
Victory Portfolios Victory Trivalent International Small-Cap Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares | Value | |||||||||
Exchange-Traded Funds (1.0%) | |||||||||||
United States (1.0%): | |||||||||||
Vanguard FTSE Developed Markets ETF (a) | 479,436 | $ | 18,597 | ||||||||
Total Exchange-Traded Funds (Cost $17,699) | 18,597 | ||||||||||
Collateral for Securities Loaned^ (3.0%) | |||||||||||
United States (3.0%): | |||||||||||
BlackRock Liquidity Funds TempFund Portfolio, Institutional Class, 0.28% (g) | 948,640 | 949 | |||||||||
Fidelity Investments Money Market Government Portfolio, Class I, 0.09% (g) | 28,710,243 | 28,710 | |||||||||
Goldman Sachs Financial Square Prime Obligations Fund, Institutional Class, 0.30% (g) | 6,596,823 | 6,597 | |||||||||
JPMorgan Prime Money Market Fund, Capital Class, 0.43% (g) | 3,774,891 | 3,775 | |||||||||
Morgan Stanley Institutional Liquidity Prime Portfolio, Institutional Class, 0.41% (g) | 16,972,646 | 16,973 | |||||||||
Total Collateral for Securities Loaned (Cost $57,004) | 57,004 | ||||||||||
Total Investments (Cost $1,580,191) — 100.8% | 1,879,788 | ||||||||||
Liabilities in excess of other assets — (0.8)% | (15,803 | ) | |||||||||
NET ASSETS — 100.00% | $ | 1,863,985 |
^ Purchased with cash collateral from securities on loan.
(a) All or a portion of this security is on loan.
(b) Non-income producing security.
(c) Rule 144A security or other security that is restricted as to resale to institutional investors. The Fund's Adviser has deemed this security to be liquid based upon procedures approved by the Board of Trustees. As of June 30, 2020, the fair value of these securities was $135,399 (thousands) and amounted to 7.3% of net assets.
(d) The Fund's Adviser has deemed this security to be illiquid based upon procedures approved by the Board of Trustees. As of June 30, 2020, illiquid securities were 0.9% of the Fund's net assets.
(e) Security was fair valued based upon procedures approved by the Board of Trustees and represents 0.1% of the Fund's net assets as of June 30, 2020. This security is classified as Level 3 within the fair value hierarchy. (See Note 2)
(f) Security was fair valued based upon procedures approved by the Board of Trustees and represents 0.8% of the Fund's net assets as of June 30, 2020. (See Note 2)
(g) Rate disclosed is the daily yield on June 30, 2020.
ETF — Exchange-Traded Fund
PLC — Public Limited Company
REIT — Real Estate Investment Trust
See notes to financial statements.
112
Victory Portfolios Victory INCORE Total Return Bond Fund | Schedule of Portfolio Investments June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Principal Amount | Value | |||||||||
Asset-Backed Securities (2.6%) | |||||||||||
Ameriquest Mortgage Securities, Series 2004-R12, Class M1, 1.04%(LIBOR01M+86bps), 1/25/35, Callable 7/25/20 @ 100 (a) | $ | 163 | $ | 163 | |||||||
Home Equity Asset Trust, Series 2005-2, Class M5, 1.28%(LIBOR01M+110bps), 7/25/35, Callable 7/25/20 @ 100 (a) | 679 | 670 | |||||||||
Park Place Securities, Inc., Series 2004-WCW2, Class M2, 1.16%(LIBOR01M+98bps), 10/25/34, Callable 7/25/20 @ 100 (a) | 77 | 77 | |||||||||
Santander Drive Auto Receivables Trust, Series 2020-1, Class A2A, 2.07%, 1/17/23, Callable 2/15/25 @ 100 (b) | 155 | 156 | |||||||||
Santander Retail Auto Lease Trust, Series 2018-A, Class B, 3.20%, 4/20/22, Callable 3/20/21 @ 100 (b) (c) | 525 | 527 | |||||||||
Synchrony Credit Card Master Note Trust, Series 2018-1, Class A, 2.97%, 3/15/24 | 295 | 299 | |||||||||
Total Asset-Backed Securities (Cost $1,867) | 1,892 | ||||||||||
Collateralized Mortgage Obligations (3.4%) | |||||||||||
Bank, Series 2020-BN26, Class AS, 2.69%, 3/15/63 | 290 | 297 | |||||||||
Citigroup Commercial Mortgage Trust, Series 2020-GC46, Class AS, 2.92%, 1/15/53 | 257 | 267 | |||||||||
Commercial Mortgage Trust, Series 2013-LC6, Class B, 3.74%, 1/10/46 (b) | 320 | 322 | |||||||||
GS Mortgage Securities Trust, Series 2012-GC6, Class B, 5.84%, 1/10/45 (b) (c) (d) | 500 | 501 | |||||||||
WFRBS Commercial Mortgage Trust, Series 2012-C10, Class B, 3.74%, 12/15/45 | 585 | 558 | |||||||||
WFRBS Commercial Mortgage Trust, Series 2012-C10, Class A5, 3.24%, 12/15/45 | 270 | 268 | |||||||||
WFRBS Commercial Mortgage Trust, Series 2014-C19, Class B, 4.72%, 3/15/47, Callable 3/1/24 @ 100 (d) | 208 | 215 | |||||||||
Total Collateralized Mortgage Obligations (Cost $2,563) | 2,428 | ||||||||||
Corporate Bonds (44.1%) | |||||||||||
Communication Services (1.8%): | |||||||||||
Activision Blizzard, Inc., 2.60%, 6/15/22, Callable 5/15/22 @ 100 (b) | 110 | 114 | |||||||||
AT&T, Inc. 3.20%, 3/1/22 (b) | 158 | 165 | |||||||||
4.25%, 3/1/27, Callable 12/1/26 @ 100 (b) | 129 | 148 | |||||||||
5.15%, 11/15/46, Callable 5/15/46 @ 100 (b) | 207 | 254 | |||||||||
Comcast Corp. 3.45%, 2/1/50, Callable 8/1/49 @ 100 | 150 | 170 | |||||||||
2.80%, 1/15/51, Callable 7/15/50 @ 100 | 128 | 131 | |||||||||
Verizon Communications, Inc. 5.15%, 9/15/23 (b) | 142 | 162 | |||||||||
3.38%, 2/15/25 (b) | 116 | 129 | |||||||||
1,273 | |||||||||||
Consumer Discretionary (4.5%): | |||||||||||
D.R. Horton, Inc., 2.50%, 10/15/24, Callable 9/15/24 @ 100 | 670 | 699 | |||||||||
General Motors Co., 4.88%, 10/2/23 (b) | 229 | 243 | |||||||||
Hasbro, Inc. 2.60%, 11/19/22 | 300 | 309 | |||||||||
6.35%, 3/15/40 | 160 | 183 | |||||||||
Lear Corp., 3.50%, 5/30/30, Callable 2/28/30 @ 100 | 112 | 110 | |||||||||
NIKE, Inc., 3.88%, 11/1/45, Callable 5/1/45 @ 100 | 198 | 243 |
See notes to financial statements.
113
Victory Portfolios Victory INCORE Total Return Bond Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Principal Amount | Value | |||||||||
NVR, Inc. 3.95%, 9/15/22, Callable 6/15/22 @ 100 (b) | $ | 268 | $ | 284 | |||||||
3.00%, 5/15/30, Callable 11/15/29 @ 100 | 267 | 278 | |||||||||
Ross Stores, Inc., 3.38%, 9/15/24, Callable 6/15/24 @ 100 | 160 | 171 | |||||||||
Starbucks Corp. 3.80%, 8/15/25, Callable 6/15/25 @ 100 | 361 | 408 | |||||||||
2.25%, 3/12/30, Callable 12/12/29 @ 100 | 205 | 213 | |||||||||
4.50%, 11/15/48, Callable 5/15/48 @ 100 | 103 | 122 | |||||||||
3,263 | |||||||||||
Consumer Staples (3.5%): | |||||||||||
Altria Group, Inc., 4.40%, 2/14/26, Callable 12/14/25 @ 100 (b) | 202 | 232 | |||||||||
BAT Capital Corp., 5.28%, 4/2/50 (e) | 167 | 202 | |||||||||
Church & Dwight Co., Inc., 2.45%, 8/1/22, Callable 7/1/22 @ 100 (b) | 70 | 72 | |||||||||
Constellation Brands, Inc., 4.65%, 11/15/28, Callable 8/15/28 @ 100 (b) | 95 | 112 | |||||||||
Estee Lauder Cos., Inc., 4.15%, 3/15/47, Callable 9/15/46 @ 100 | 105 | 131 | |||||||||
Hormel Foods Corp., 1.80%, 6/11/30, Callable 3/11/30 @ 100 | 363 | 369 | |||||||||
Keurig Dr Pepper, Inc. | |||||||||||
4.06%, 5/25/23, Callable 4/25/23 @ 100 (b) | 340 | 370 | |||||||||
5.09%, 5/25/48, Callable 11/25/47 @ 100 | 70 | 93 | |||||||||
Mead Johnson Nutrition Co., 4.60%, 6/1/44, Callable 12/1/43 @ 100 (b) | 204 | 259 | |||||||||
Reynolds American, Inc., 6.15%, 9/15/43 (b) | 175 | 216 | |||||||||
The Coca-Cola Co., 2.95%, 3/25/25 | 263 | 290 | |||||||||
Tyson Foods, Inc., 5.10%, 9/28/48, Callable 3/28/48 @ 100 | 135 | 174 | |||||||||
2,520 | |||||||||||
Energy (2.5%): | |||||||||||
Continental Resources, Inc., 4.50%, 4/15/23, Callable 1/15/23 @ 100 (b) | 234 | 224 | |||||||||
EQM Midstream Partners LP, 4.75%, 7/15/23, Callable 6/15/23 @ 100 (b) | 248 | 250 | |||||||||
Exxon Mobil Corp., 4.11%, 3/1/46, Callable 9/1/45 @ 100 | 191 | 230 | |||||||||
Marathon Petroleum Corp., 4.75%, 9/15/44, Callable 3/15/44 @ 100 | 229 | 242 | |||||||||
Plains All American Pipeline LP/PAA Finance Corp. | |||||||||||
2.85%, 1/31/23, Callable 10/31/22 @ 100 (b) | 245 | 248 | |||||||||
3.80%, 9/15/30, Callable 6/15/30 @ 100 | 210 | 206 | |||||||||
Valero Energy Corp. 4.00%, 4/1/29, Callable 1/1/29 @ 100 (b) | 102 | 114 | |||||||||
10.50%, 3/15/39 | 195 | 313 | |||||||||
1,827 | |||||||||||
Financials (13.5%): | |||||||||||
Aflac, Inc. 2.88%, 10/15/26, Callable 7/15/26 @ 100 | 335 | 369 | |||||||||
4.75%, 1/15/49, Callable 7/15/48 @ 100 | 35 | 45 | |||||||||
Alleghany Corp. 3.63%, 5/15/30, Callable 2/15/30 @ 100 (e) | 130 | 139 | |||||||||
4.90%, 9/15/44, Callable 3/15/44 @ 100 | 204 | 240 | |||||||||
Bank of America Corp. 2.33%(LIBOR03M+63bps), 10/1/21, Callable 10/1/20 @ 100 (a) (b) | 265 | 266 | |||||||||
2.50%, 10/21/22, Callable 10/21/21 @ 100, MTN | 515 | 527 | |||||||||
4.20%, 8/26/24, MTN (b) | 160 | 178 | |||||||||
3.25%, 10/21/27, Callable 10/21/26 @ 100, MTN | 205 | 227 |
See notes to financial statements.
114
Victory Portfolios Victory INCORE Total Return Bond Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Principal Amount | Value | |||||||||
Capital One Financial Corp., 3.30%, 10/30/24, Callable 9/30/24 @ 100 (b) | $ | 224 | $ | 241 | |||||||
Cincinnati Financial Corp., 6.13%, 11/1/34 | 230 | 322 | |||||||||
Citigroup, Inc. 2.75%, 4/25/22, Callable 3/25/22 @ 100 | 363 | 376 | |||||||||
3.88%, 3/26/25 | 108 | 118 | |||||||||
4.60%, 3/9/26 (b) | 232 | 265 | |||||||||
4.45%, 9/29/27 (b) | 108 | 123 | |||||||||
3.88%(LIBOR03M+117bps), 1/24/39, Callable 1/24/38 @ 100 (a) | 94 | 109 | |||||||||
Fifth Third Bancorp 1.63%, 5/5/23, Callable 4/5/23 @ 100 | 130 | 133 | |||||||||
3.65%, 1/25/24, Callable 12/25/23 @ 100 (b) | 584 | 637 | |||||||||
Ford Motor Credit Co. LLC, 4.06%, 11/1/24, Callable 10/1/24 @ 100 | 290 | 276 | |||||||||
General Motors Financial Co., Inc., 4.15%, 6/19/23, Callable 5/19/23 @ 100 | 110 | 115 | |||||||||
JPMorgan Chase & Co. 2.95%, 10/1/26, Callable 7/1/26 @ 100 | 425 | 466 | |||||||||
5.60%, 7/15/41 | 87 | 126 | |||||||||
KeyCorp, 2.25%, 4/6/27, MTN | 243 | 254 | |||||||||
Morgan Stanley 4.88%, 11/1/22 (b) | 303 | 329 | |||||||||
3.13%, 7/27/26, MTN | 545 | 601 | |||||||||
Regions Financial Corp., 2.25%, 5/18/25, Callable 4/18/25 @ 100 | 235 | 246 | |||||||||
SVB Financial Group, 3.13%, 6/5/30, Callable 3/5/30 @ 100 | 145 | 155 | |||||||||
The Goldman Sachs Group, Inc. 2.35%, 11/15/21, Callable 11/15/20 @ 100 | 265 | 267 | |||||||||
3.50%, 1/23/25, Callable 10/23/24 @ 100 | 275 | 300 | |||||||||
Truist Financial Corp., 2.75%, 4/1/22, MTN, Callable 3/1/22 @ 100 | 480 | 497 | |||||||||
Unum Group, 4.00%, 6/15/29, Callable 3/15/29 @ 100 | 195 | 201 | |||||||||
Wells Fargo & Co. 3.45%, 2/13/23 | 585 | 621 | |||||||||
4.30%, 7/22/27, MTN | 410 | 469 | |||||||||
4.90%, 11/17/45 (b) | 155 | 199 | |||||||||
Zions Bancorp NA, 3.25%, 10/29/29, Callable 7/29/29 @ 100 | 250 | 245 | |||||||||
9,682 | |||||||||||
Health Care (4.2%): | |||||||||||
AbbVie, Inc. 2.30%, 5/14/21, Callable 4/14/21 @ 100 (b) | 317 | 321 | |||||||||
3.20%, 11/21/29, Callable 8/21/29 @ 100 (b) (c) | 285 | 313 | |||||||||
Amgen, Inc. 6.90%, 6/1/38 | 125 | 189 | |||||||||
4.40%, 5/1/45, Callable 11/1/44 @ 100 | 145 | 180 | |||||||||
Anthem, Inc., 2.38%, 1/15/25, Callable 12/15/24 @ 100 | 148 | 157 | |||||||||
Bristol-Myers Squibb Co., 3.40%, 7/26/29, Callable 4/26/29 @ 100 (c) | 455 | 525 | |||||||||
Gilead Sciences, Inc., 4.40%, 12/1/21, Callable 9/1/21 @ 100 (b) | 660 | 691 | |||||||||
HCA, Inc., 4.13%, 6/15/29, Callable 3/15/29 @ 100 | 193 | 213 | |||||||||
Humana, Inc., 2.90%, 12/15/22, Callable 11/15/22 @ 100 (b) | 135 | 141 | |||||||||
Merck & Co., Inc., 2.45%, 6/24/50, Callable 12/24/49 @ 100 | 135 | 136 | |||||||||
Upjohn, Inc., 2.30%, 6/22/27, Callable 4/22/27 @ 100 (c) | 95 | 98 | |||||||||
2,964 |
See notes to financial statements.
115
Victory Portfolios Victory INCORE Total Return Bond Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Principal Amount | Value | |||||||||
Industrials (4.3%): | |||||||||||
Carlisle Cos., Inc., 2.75%, 3/1/30, Callable 12/1/29 @ 100 (e) | $ | 150 | $ | 154 | |||||||
Delta Air Lines, Inc., 3.80%, 4/19/23, Callable 3/19/23 @ 100 (b) | 275 | 245 | |||||||||
Hillenbrand, Inc., 4.50%, 9/15/26, Callable 7/15/26 @ 100 | 420 | 432 | |||||||||
Honeywell International, Inc., 2.80%, 6/1/50, Callable 12/1/49 @ 100 | 82 | 88 | |||||||||
IDEX Corp., 3.00%, 5/1/30, Callable 2/1/30 @ 100 | 238 | 249 | |||||||||
Kansas City Southern, 4.95%, 8/15/45, Callable 2/15/45 @ 100 | 210 | 271 | |||||||||
Oshkosh Corp., 3.10%, 3/1/30, Callable 12/1/29 @ 100 | 140 | 141 | |||||||||
PACCAR Financial Corp., 0.80%, 6/8/23, MTN | 226 | 227 | |||||||||
Rockwell Automation, Inc. 3.50%, 3/1/29, Callable 12/1/28 @ 100 (e) | 165 | 186 | |||||||||
6.25%, 12/1/37 | 155 | 216 | |||||||||
Roper Technologies, Inc., 2.95%, 9/15/29, Callable 6/15/29 @ 100 (b) | 379 | 413 | |||||||||
Snap-on, Inc., 4.10%, 3/1/48, Callable 9/1/47 @ 100 | 115 | 136 | |||||||||
Valmont Industries, Inc., 5.00%, 10/1/44, Callable 4/1/44 @ 100 (b) | 279 | 286 | |||||||||
3,044 | |||||||||||
Information Technology (5.0%): | |||||||||||
Apple, Inc., 4.65%, 2/23/46, Callable 8/23/45 @ 100 | 117 | 161 | |||||||||
Broadcom Corp., 3.00%, 1/15/22, Callable 12/15/21 @ 100 (b) | 160 | 164 | |||||||||
Broadcom, Inc., 5.00%, 4/15/30, Callable 1/15/30 @ 100 (c) | 315 | 361 | |||||||||
Cadence Design Systems, Inc., 4.38%, 10/15/24, Callable 7/15/24 @ 100 | 342 | 381 | |||||||||
Intel Corp., 3.40%, 3/25/25, Callable 2/25/25 @ 100 | 228 | 256 | |||||||||
Lam Research Corp., 4.00%, 3/15/29, Callable 12/15/28 @ 100 (b) | 101 | 120 | |||||||||
Micron Technology, Inc. 4.19%, 2/15/27, Callable 12/15/26 @ 100 | 124 | 139 | |||||||||
5.33%, 2/6/29, Callable 11/6/28 @ 100 | 300 | 359 | |||||||||
NetApp, Inc. 3.25%, 12/15/22, Callable 9/15/22 @ 100 | 150 | 156 | |||||||||
1.88%, 6/22/25, Callable 5/22/25 @ 100 (e) | 288 | 292 | |||||||||
NVIDIA Corp., 2.20%, 9/16/21, Callable 8/16/21 @ 100 | 165 | 168 | |||||||||
PayPal Holdings, Inc., 1.65%, 6/1/25, Callable 5/1/25 @ 100 | 415 | 429 | |||||||||
Texas Instruments, Inc., 4.15%, 5/15/48, Callable 11/15/47 @ 100 | 160 | 208 | |||||||||
VMware, Inc., 2.95%, 8/21/22, Callable 7/21/22 @ 100 | 360 | 372 | |||||||||
3,566 | |||||||||||
Materials (0.9%): | |||||||||||
Celanese US Holdings LLC, 4.63%, 11/15/22 (b) | 210 | 223 | |||||||||
Nucor Corp. 2.00%, 6/1/25, Callable 5/1/25 @ 100 (e) | 160 | 166 | |||||||||
4.40%, 5/1/48, Callable 11/1/47 @ 100 | 102 | 123 | |||||||||
Southern Copper Corp., 5.25%, 11/8/42 (b) | 95 | 113 | |||||||||
Steel Dynamics, Inc., 2.40%, 6/15/25, Callable 5/15/25 @ 100 (e) | 50 | 51 | |||||||||
676 | |||||||||||
Real Estate (1.6%): | |||||||||||
Duke Realty LP, 3.05%, 3/1/50, Callable 9/1/49 @ 100 | 159 | 166 | |||||||||
Highwoods Realty LP, 3.63%, 1/15/23, Callable 10/15/22 @ 100 | 630 | 653 | |||||||||
Retail Properties of America, Inc., 4.00%, 3/15/25, Callable 12/15/24 @ 100 | 339 | 330 | |||||||||
1,149 |
See notes to financial statements.
116
Victory Portfolios Victory INCORE Total Return Bond Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Principal Amount | Value | |||||||||
Utilities (2.3%): | |||||||||||
Arizona Public Service Co., 2.95%, 9/15/27, Callable 6/15/27 @ 100 | $ | 250 | $ | 270 | |||||||
Consolidated Edison, Inc., 6.30%, 8/15/37 (e) | 250 | 358 | |||||||||
NextEra Energy Capital Holdings, Inc., 2.80%, 1/15/23, Callable 12/15/22 @ 100 (b) | 310 | 325 | |||||||||
Oklahoma G&E Co., 5.25%, 5/15/41, Callable 11/15/40 @ 100 | 190 | 235 | |||||||||
Public Service Electric & Gas Co., 3.95%, 5/1/42, MTN, Callable 11/1/41 @ 100 (b) | 159 | 192 | |||||||||
Vistra Operations Co. LLC, 3.70%, 1/30/27, Callable 11/30/26 @ 100 (c) | 287 | 294 | |||||||||
1,674 | |||||||||||
Total Corporate Bonds (Cost $29,747) | 31,638 | ||||||||||
Residential Mortgage-Backed Securities (0.3%) | |||||||||||
Credit Suisse First Boston Mortgage Securities Corp., Series 2002-HE16, Class M1, 1.50%(LIBOR01M+132bps), 10/25/32, Callable 7/25/20 @ 100 (a) | 105 | 102 | |||||||||
JPMorgan Mortgage Trust, Series 2016-4, Class A5, 3.50%, 10/25/46, Callable 9/25/23 @ 100 (b) (c) (d) | 117 | 119 | |||||||||
Total Residential Mortgage-Backed Securities (Cost $222) | 221 | ||||||||||
Yankee Dollars (8.5%) | |||||||||||
Communication Services (0.8%): | |||||||||||
Vodafone Group PLC 3.75%, 1/16/24 | 321 | 352 | |||||||||
5.25%, 5/30/48 | 193 | 250 | |||||||||
602 | |||||||||||
Consumer Discretionary (0.7%): | |||||||||||
Magna International, Inc., 3.63%, 6/15/24, Callable 3/15/24 @ 100 | 460 | 505 | |||||||||
Consumer Staples (2.1%): | |||||||||||
Kerry Group Financial Services Unlimited Co., 3.20%, 4/9/23, Callable 1/9/23 @ 100 (b) (c) | 670 | 700 | |||||||||
Suntory Holdings Ltd. 2.55%, 6/28/22, Callable 5/28/22 @ 100 (b) (c) | 574 | 591 | |||||||||
2.25%, 10/16/24, Callable 9/16/24 @ 100 (c) | 200 | 208 | |||||||||
1,499 | |||||||||||
Energy (1.4%): | |||||||||||
Canadian Natural Resources Ltd. 2.95%, 1/15/23, Callable 12/15/22 @ 100 | 140 | 145 | |||||||||
2.05%, 7/15/25, Callable 6/15/25 @ 100 (e) | 371 | 372 | |||||||||
Ecopetrol SA, 5.88%, 9/18/23 (b) | 325 | 349 | |||||||||
Statoil ASA, 3.95%, 5/15/43 | 100 | 115 | |||||||||
981 | |||||||||||
Financials (2.1%): | |||||||||||
Enel Finance International NV, 2.88%, 5/25/22 (b) (c) | 415 | 429 | |||||||||
Newcrest Finance Pty Ltd. 5.75%, 11/15/41 (c) (e) | 155 | 202 | |||||||||
4.20%, 5/13/50, Callable 11/13/49 @ 100 (c) (e) | 110 | 122 |
See notes to financial statements.
117
Victory Portfolios Victory INCORE Total Return Bond Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Principal Amount | Value | |||||||||
NXP BV/NXP Funding LLC, 4.63%, 6/1/23 (c) | $ | 300 | $ | 329 | |||||||
NXP BV/NXP Funding LLC/NXP USA, Inc., 2.70%, 5/1/25, Callable 4/1/25 @ 100 (c) (e) | 173 | 181 | |||||||||
Total Capital International SA, 2.99%, 6/29/41, Callable 12/29/40 @ 100 | 195 | 199 | |||||||||
1,462 | |||||||||||
Industrials (0.1%): | |||||||||||
Canadian National Railway Co., 3.20%, 8/2/46, Callable 2/2/46 @ 100 | 85 | 94 | |||||||||
Information Technology (0.2%): | |||||||||||
Tyco Electronics Group SA, 7.13%, 10/1/37 | 82 | 125 | |||||||||
Materials (0.7%): | |||||||||||
LYB International Finance II BV, 3.50%, 3/2/27, Callable 12/2/26 @ 100 (b) (e) | 183 | 199 | |||||||||
Rio Tinto Finance USA Ltd. | |||||||||||
3.75%, 6/15/25, Callable 3/15/25 @ 100 | 190 | 215 | |||||||||
5.20%, 11/2/40 | 75 | 105 | |||||||||
519 | |||||||||||
Utilities (0.4%): | |||||||||||
Iberdrola International BV 6.75%, 9/15/33 | 50 | 69 | |||||||||
6.75%, 7/15/36 | 152 | 211 | |||||||||
280 | |||||||||||
Total Yankee Dollars (Cost $5,775) | 6,067 | ||||||||||
U.S. Government Mortgage-Backed Agencies (29.7%) | |||||||||||
Federal Home Loan Mortgage Corp. 9.00%, 4/1/25 (b) | 15 | 16 | |||||||||
7.50%, 8/1/29 (b) | 9 | 10 | |||||||||
Series 4395, Class PA, 2.50%, 4/15/37 – 7/1/50 (b) | 657 | 689 | |||||||||
5.00%, 7/1/39 (b) | 646 | 738 | |||||||||
Series 4320, Class AP, 3.50%, 7/15/39 – 10/15/40 (b) | 728 | 766 | |||||||||
Series 4444, Class CH, 3.00%, 1/15/41 – 10/1/46 (b) | 921 | 971 | |||||||||
Series 4049, Class AB, 2.75%, 12/15/41 (b) | 137 | 141 | |||||||||
Series 4494, Class JA, 3.75%, 5/15/42 (b) | 564 | 589 | |||||||||
4.50%, 7/1/44 – 12/1/45 (b) | 1,235 | 1,384 | |||||||||
5,304 | |||||||||||
Federal National Mortgage Association 6.00%, 2/1/37 (b) | 117 | 140 | |||||||||
Series 2013-33, Class UD, 2.50%, 4/25/39 – 12/25/47 (b) | 1,609 | 1,682 | |||||||||
3.50%, 8/1/39 – 12/25/50 (b) | 4,432 | 4,679 | |||||||||
Series 2011-21, Class PA, 4.50%, 5/25/40 (b) | 590 | 623 | |||||||||
3.00%, 7/1/40 – 2/25/49 (b) | 4,840 | 5,148 | |||||||||
Series 2013-81, Class KA, 2.75%, 9/25/42 (b) | 325 | 337 | |||||||||
Series 2015-61, Class PV, 3.50%, 5/25/44 (b) (d) | 794 | 882 | |||||||||
Series 2013-44, Class PB, 1.75%, 1/25/43 (b) (d) | 8,248 | 8 | |||||||||
4.00%, 3/1/47 – 6/1/49 | 1,626 | 1,751 | |||||||||
15,250 |
See notes to financial statements.
118
Victory Portfolios Victory INCORE Total Return Bond Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Security Description | Shares or Principal Amount | Value | |||||||||
Government National Mortgage Association 4.50%, 10/20/49 | $ | 321 | $ | 343 | |||||||
3.00%, 2/20/50 | 346 | 367 | |||||||||
710 | |||||||||||
Total U.S. Government Mortgage-Backed Agencies (Cost $20,436) | 21,264 | ||||||||||
U.S. Treasury Obligations (0.1%) | |||||||||||
U.S. Treasury Bonds, 2.00%, 2/15/50 (b) | 90 | 103 | |||||||||
Total U.S. Treasury Obligations (Cost $97) | 103 | ||||||||||
Collateral for Securities Loaned^ (2.8%) | |||||||||||
BlackRock Liquidity Funds TempFund Portfolio, Institutional Class, 0.28% (f) | 33,500 | 34 | |||||||||
Fidelity Investments Money Market Government Portfolio, Class I, 0.09% (f) | 998,051 | 998 | |||||||||
Goldman Sachs Financial Square Prime Obligations Fund, Institutional Class, 0.30% (f) | 229,317 | 229 | |||||||||
JPMorgan Prime Money Market Fund, Capital Class, 0.43% (f) | 131,221 | 131 | |||||||||
Morgan Stanley Institutional Liquidity Prime Portfolio, Institutional Class, 0.41% (f) | 589,997 | 590 | |||||||||
Total Collateral for Securities Loaned (Cost $1,982) | 1,982 | ||||||||||
Total Investments (Cost $62,689) — 91.5% | 65,595 | ||||||||||
Other assets in excess of liabilities — 8.5% | 6,058 | ||||||||||
NET ASSETS — 100.00% | $ | 71,653 |
^ Purchased with cash collateral from securities on loan.
(a) Variable or Floating-Rate Security. Rate disclosed is as of June 30, 2020.
(b) All or a portion of this security has been segregated as collateral for derivative instruments.
(c) Rule 144A security or other security that is restricted as to resale to institutional investors. The Fund's Adviser has deemed this security to be liquid based upon procedures approved by the Board of Trustees. As of June 30, 2020, the fair value of these securities was $5,500 (thousands) and amounted to 7.7% of net assets.
(d) The rate for certain asset-backed and mortgage-backed securities may vary based on factors relating to the pool of assets underlying the security. The rate disclosed is the rate in effect at June 30, 2020.
(e) All or a portion of this security is on loan.
(f) Rate disclosed is the daily yield on June 30, 2020.
bps — Basis points
LIBOR — London InterBank Offered Rate
LIBOR01M — 1 Month US Dollar LIBOR, rate disclosed as of June 30, 2020, based on the last reset date of the security
LIBOR03M — 3 Month US Dollar LIBOR, rate disclosed as of June 30, 2020, based on the last reset date of the security
LLC — Limited Liability Company
LP — Limited Partnership
MTN — Medium Term Note
PLC — Public Limited Company
See notes to financial statements.
119
Victory Portfolios Victory INCORE Total Return Bond Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares)
Futures Contracts Purchased
(Amounts not in thousands)
Number of Contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation/ (Depreciation) | |||||||||||||||||||
2-Year U.S. Treasury Note Future | 2 | 9/30/20 | $ | 441,382 | $ | 441,656 | $ | 274 | |||||||||||||||
5-Year U.S. Treasury Note Future | 30 | 9/30/20 | 3,759,665 | 3,772,266 | 12,601 | ||||||||||||||||||
Ultra Long Term U.S. Treasury Bond Future | 28 | 9/21/20 | 6,108,727 | 6,108,375 | (352 | ) | |||||||||||||||||
$ | 12,523 |
Futures Contracts Sold
(Amounts not in thousands)
Number of Contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation/ (Depreciation) | |||||||||||||||||||
10-Year U.S. Treasury Note Future | 15 | 9/21/20 | $ | 2,067,432 | $ | 2,087,578 | $ | (20,146 | ) | ||||||||||||||
Total unrealized appreciation | $ | 12,875 | |||||||||||||||||||||
Total unrealized depreciation | (20,498 | ) | |||||||||||||||||||||
Total net unrealized appreciation (depreciation) | $ | (7,623 | ) |
See notes to financial statements.
120
Victory Portfolios | Statements of Assets and Liabilities June 30, 2020 |
(Amounts in Thousands, Except Per Share Amounts)
Victory Integrity Discovery Fund | Victory Integrity Mid-Cap Value Fund | Victory Integrity Small-Cap Value Fund | |||||||||||||
ASSETS: | |||||||||||||||
Investments, at value (Cost $78,774, $217,109 and $1,688,094) | $ | 68,312 | (a) | $ | 206,950 | (b) | $ | 1,659,148 | (c) | ||||||
Cash and cash equivalents | 1,410 | 456 | 8,085 | ||||||||||||
Receivables: | |||||||||||||||
Interest and dividends | 74 | 406 | 2,542 | ||||||||||||
Capital shares issued | 257 | 132 | 1,414 | ||||||||||||
Investments sold | 514 | 1,027 | 16,668 | ||||||||||||
From Adviser | 3 | 102 | — | ||||||||||||
Prepaid expenses | 40 | 24 | 128 | ||||||||||||
Total Assets | 70,610 | 209,097 | 1,687,985 | ||||||||||||
LIABILITIES: | |||||||||||||||
Payables: | |||||||||||||||
Collateral received on loaned securities | 7,714 | 5,636 | 97,237 | ||||||||||||
Investments purchased | 356 | 682 | 17,840 | ||||||||||||
Capital shares redeemed | 78 | 130 | 3,891 | ||||||||||||
Accrued expenses and other payables: | |||||||||||||||
Investment advisory fees | 51 | 128 | 1,165 | ||||||||||||
Administration fees | 3 | 11 | 81 | ||||||||||||
Custodian fees | 1 | 2 | 13 | ||||||||||||
Transfer agent fees | 41 | 10 | 248 | ||||||||||||
Compliance fees | — | (d) | — | (d) | 1 | ||||||||||
Trustees' fees | 28 | — | 29 | ||||||||||||
12b-1 fees | 4 | 1 | 12 | ||||||||||||
Other accrued expenses | 17 | 24 | 166 | ||||||||||||
Total Liabilities | 8,293 | 6,624 | 120,683 | ||||||||||||
NET ASSETS: | |||||||||||||||
Capital | 84,266 | 231,681 | 1,853,528 | ||||||||||||
Total distributable earnings/(loss) | (21,949 | ) | (29,208 | ) | (286,226 | ) | |||||||||
Net Assets | $ | 62,317 | $ | 202,473 | $ | 1,567,302 | |||||||||
Net Assets | |||||||||||||||
Class A Shares | $ | 30,614 | $ | 8,574 | $ | 79,429 | |||||||||
Class C Shares | 2,194 | 44 | 5,796 | ||||||||||||
Class R Shares | 1,990 | — | 5,303 | ||||||||||||
Class R6 Shares | — | 184,503 | 984,938 | ||||||||||||
Class Y Shares | 27,519 | 9,352 | 491,836 | ||||||||||||
Total | $ | 62,317 | $ | 202,473 | $ | 1,567,302 | |||||||||
Shares (unlimited number of shares authorized with a par value of $0.001 per share): | |||||||||||||||
Class A Shares | 1,274 | 560 | 3,256 | ||||||||||||
Class C Shares | 134 | 3 | 279 | ||||||||||||
Class R Shares | 89 | — | 225 | ||||||||||||
Class R6 Shares | — | 11,928 | 38,729 | ||||||||||||
Class Y Shares | 1,033 | 606 | 19,465 | ||||||||||||
Total | 2,530 | 13,097 | 61,954 | ||||||||||||
Net asset value, offering (except Class A Shares) and redemption price per share: (e) | |||||||||||||||
Class A Shares | $ | 24.03 | $ | 15.30 | $ | 24.40 | |||||||||
Class C Shares (f) | 16.32 | 15.37 | 20.81 | ||||||||||||
Class R Shares | 22.45 | — | 23.53 | ||||||||||||
Class R6 Shares | — | 15.47 | 25.43 | ||||||||||||
Class Y Shares | 26.64 | 15.44 | 25.27 | ||||||||||||
Maximum Sales Charge — Class A Shares | 5.75 | % | 5.75 | % | 5.75 | % | |||||||||
Maximum offering price (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent) per share — Class A Shares | $ | 25.50 | $ | 16.23 | $ | 25.89 |
(a) Includes $7,344 of securities on loan.
(b) Includes $5,311 of securities on loan.
(c) Includes $95,285 of securities on loan.
(d) Rounds to less than $1 thousand.
(e) Per share amount may not recalculate due to rounding of net assets and/or shares outstanding.
(f) Redemption price per share varies by the length of time shares are held.
See notes to financial statements.
121
Victory Portfolios | Statements of Assets and Liabilities June 30, 2020 |
(Amounts in Thousands, Except Per Share Amounts)
Victory Integrity Small/Mid-Cap Value Fund | Victory Munder Multi-Cap Fund | Victory S&P 500 Index Fund | |||||||||||||
ASSETS: | |||||||||||||||
Investments, at value (Cost $125,046, $275,651 and $51,510) | $ | 118,576 | (a) | $ | 349,015 | (b) | $ | 213,863 | (c) | ||||||
Cash and cash equivalents | 965 | 2,020 | 1,364 | ||||||||||||
Deposits with brokers for futures contracts | — | — | 435 | ||||||||||||
Receivables: | |||||||||||||||
Interest and dividends | 168 | 183 | 168 | ||||||||||||
Capital shares issued | 127 | 26 | 18 | ||||||||||||
Variation margin on open futures contracts | — | — | 26 | ||||||||||||
From Adviser | 24 | 1 | — | ||||||||||||
Prepaid expenses | 25 | 41 | 42 | ||||||||||||
Total Assets | 119,885 | 351,286 | 215,916 | ||||||||||||
LIABILITIES: | |||||||||||||||
Payables: | |||||||||||||||
Collateral received on loaned securities | 3,035 | 2,900 | 2,191 | ||||||||||||
Investments purchased | 531 | — | 7 | ||||||||||||
Capital shares redeemed | 110 | 115 | 58 | ||||||||||||
Accrued expenses and other payables: | |||||||||||||||
Investment advisory fees | 77 | 213 | 35 | ||||||||||||
Administration fees | 6 | 17 | 11 | ||||||||||||
Custodian fees | 1 | 3 | 2 | ||||||||||||
Transfer agent fees | — | (d) | 128 | 32 | |||||||||||
Compliance fees | — | (d) | — | (d) | — | (d) | |||||||||
Trustees' fees | — | 157 | 29 | ||||||||||||
12b-1 fees | — | (d) | 34 | 12 | |||||||||||
Other accrued expenses | 28 | 50 | 27 | ||||||||||||
Total Liabilities | 3,788 | 3,617 | 2,404 | ||||||||||||
NET ASSETS: | |||||||||||||||
Capital | 137,427 | 283,715 | 44,754 | ||||||||||||
Total distributable earnings/(loss) | (21,330 | ) | 63,954 | 168,758 | |||||||||||
Net Assets | $ | 116,097 | $ | 347,669 | $ | 213,512 | |||||||||
Net Assets | |||||||||||||||
Class A Shares | $ | 3,241 | $ | 311,642 | $ | 153,714 | |||||||||
Class C Shares | — | 5,769 | — | ||||||||||||
Class R Shares | — | — | 13,726 | ||||||||||||
Class R6 Shares | 80,284 | — | — | ||||||||||||
Class Y Shares | 32,572 | 30,258 | 46,072 | ||||||||||||
Total | $ | 116,097 | $ | 347,669 | $ | 213,512 | |||||||||
Shares (unlimited number of shares authorized with a par value of $0.001 per share): | |||||||||||||||
Class A Shares | 241 | 8,140 | 7,763 | ||||||||||||
Class C Shares | — | 197 | — | ||||||||||||
Class R Shares | — | — | 695 | ||||||||||||
Class R6 Shares | 5,886 | — | — | ||||||||||||
Class Y Shares | 2,395 | 720 | 2,308 | ||||||||||||
Total | 8,522 | 9,057 | 10,766 | ||||||||||||
Net asset value, offering (except Class A Shares) and redemption price per share: (e) | |||||||||||||||
Class A Shares | $ | 13.46 | $ | 38.28 | $ | 19.80 | |||||||||
Class C Shares (f) | — | 29.35 | — | ||||||||||||
Class R Shares | — | 19.74 | |||||||||||||
Class R6 Shares | 13.64 | — | — | ||||||||||||
Class Y Shares | 13.60 | 42.05 | 19.96 | ||||||||||||
Maximum Sales Charge — Class A Shares | 5.75 | % | 5.75 | % | 2.50 | % | |||||||||
Maximum offering price (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent) per share — Class A Shares | $ | 14.28 | $ | 40.62 | $ | 20.31 |
(a) Includes $2,966 of securities on loan.
(b) Includes $2,860 of securities on loan.
(c) Includes $2,165 of securities on loan.
(d) Rounds to less than $1 thousand.
(e) Per share amount may not recalculate due to rounding of net assets and/or shares outstanding.
(f) Redemption price per share varies by the length of time shares are held.
See notes to financial statements.
122
Victory Portfolios | Statements of Assets and Liabilities June 30, 2020 |
(Amounts in Thousands, Except Per Share Amounts)
Victory Munder Mid-Cap Core Growth Fund | Victory Munder Small Cap Growth Fund | Victory Trivalent Emerging Markets Small-Cap Fund | |||||||||||||
ASSETS: | |||||||||||||||
Investments, at value (Cost $472,467, $10,091 and $7,378) | $ | 618,731 | (a) | $ | 12,011 | (b) | $ | 8,608 | (c) | ||||||
Foreign currency, at value (Cost $—, $— and $48) | — | — | 48 | ||||||||||||
Cash and cash equivalents | 1,375 | 153 | 25 | ||||||||||||
Receivables: | |||||||||||||||
Interest and dividends | 368 | 3 | 16 | ||||||||||||
Capital shares issued | 174 | — | — | ||||||||||||
Investments sold | — | — | 59 | ||||||||||||
From Adviser | 3 | 3 | 13 | ||||||||||||
Prepaid expenses | 68 | 4 | 5 | ||||||||||||
Total Assets | 620,719 | 12,174 | 8,774 | ||||||||||||
LIABILITIES: | |||||||||||||||
Payables: | |||||||||||||||
Collateral received on loaned securities | 34,566 | 1,256 | 248 | ||||||||||||
Investments purchased | — | 84 | 48 | ||||||||||||
Capital shares redeemed | 1,044 | — | 6 | ||||||||||||
Accrued foreign capital gains taxes | — | — | 4 | ||||||||||||
Accrued expenses and other payables: | |||||||||||||||
Investment advisory fees | 363 | 7 | 7 | ||||||||||||
Administration fees | 27 | 1 | — | (d) | |||||||||||
Custodian fees | 6 | — | (d) | 6 | |||||||||||
Transfer agent fees | 205 | — | (d) | 3 | |||||||||||
Compliance fees | — | (d) | — | (d) | — | (d) | |||||||||
Trustees' fees | 32 | — | — | (d) | |||||||||||
12b-1 fees | 28 | — | (d) | — | (d) | ||||||||||
Other accrued expenses | 85 | 10 | 24 | ||||||||||||
Total Liabilities | 36,356 | 1,358 | 346 | ||||||||||||
NET ASSETS: | |||||||||||||||
Capital | 449,433 | 8,106 | 8,801 | ||||||||||||
Total distributable earnings/(loss) | 134,930 | 2,710 | (373 | ) | |||||||||||
Net Assets | $ | 584,363 | $ | 10,816 | $ | 8,428 | |||||||||
Net Assets | |||||||||||||||
Class A Shares | $ | 186,571 | $ | 359 | $ | 933 | |||||||||
Class C Shares | 14,053 | — | — | ||||||||||||
Class I Shares | — | 10,370 | — | ||||||||||||
Class R Shares | 12,943 | — | — | ||||||||||||
Class R6 Shares | 113,104 | — | — | ||||||||||||
Class Y Shares | 257,692 | 87 | 7,495 | ||||||||||||
Total | $ | 584,363 | $ | 10,816 | $ | 8,428 | |||||||||
Shares (unlimited number of shares authorized with a par value of $0.001 per share): | |||||||||||||||
Class A Shares | 15,870 | 25 | 79 | ||||||||||||
Class C Shares | 2,866 | — | — | ||||||||||||
Class I Shares | — | 723 | — | ||||||||||||
Class R Shares | 1,297 | — | — | ||||||||||||
Class R6 Shares | 7,643 | — | — | ||||||||||||
Class Y Shares | 18,215 | 6 | 638 | ||||||||||||
Total | 45,891 | 754 | 717 | ||||||||||||
Net asset value, offering (except Class A Shares) and redemption price per share: (e) | |||||||||||||||
Class A Shares | $ | 11.76 | $ | 14.13 | $ | 11.74 | |||||||||
Class C Shares (f) | 4.90 | — | — | ||||||||||||
Class I Shares | — | 14.35 | — | ||||||||||||
Class R Shares | 9.98 | — | — | ||||||||||||
Class R6 Shares | 14.80 | — | — | ||||||||||||
Class Y Shares | 14.15 | 14.20 | 11.75 | ||||||||||||
Maximum Sales Charge — Class A Shares | 5.75 | % | 5.75 | % | 5.75 | % | |||||||||
Maximum offering price (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent) per share — Class A Shares | $ | 12.48 | $ | 14.99 | $ | 12.46 |
(a) Includes $34,030 of securities on loan.
(b) Includes $1,231 of securities on loan.
(c) Includes $239 of securities on loan.
(d) Rounds to less than $1 thousand.
(e) Per share amount may not recalculate due to rounding of net assets and/or shares outstanding.
(f) Redemption price per share varies by the length of time shares are held.
See notes to financial statements.
123
Victory Portfolios | Statements of Assets and Liabilities June 30, 2020 |
(Amounts in Thousands, Except Per Share Amounts)
Victory Trivalent International Fund-Core Equity | Victory Trivalent International Small-Cap Fund | Victory INCORE Total Return Bond Fund | |||||||||||||
ASSETS: | |||||||||||||||
Investments, at value (Cost $133,760, $1,580,191 and $62,689) | $ | 134,502 | (a) | $ | 1,879,788 | (b) | $ | 65,595 | (c) | ||||||
Foreign currency, at value (Cost $265, $2,157 and $—) | 265 | 2,157 | — | ||||||||||||
Cash and cash equivalents | 1,037 | 57,503 | 3,500 | ||||||||||||
Deposits with brokers for swap agreements | — | — | 353 | ||||||||||||
Deposits with brokers for futures contracts | — | — | 752 | ||||||||||||
Receivables: | |||||||||||||||
Interest and dividends | 346 | 2,571 | 405 | ||||||||||||
Capital shares issued | — | (d) | 1,666 | — | |||||||||||
Investments sold | 104 | 10,722 | 3,116 | ||||||||||||
Variation margin on open futures contracts | — | — | 2 | ||||||||||||
Reclaims | 113 | 2,261 | — | ||||||||||||
From Adviser | 92 | 595 | 1 | ||||||||||||
Prepaid expenses | 76 | 111 | 35 | ||||||||||||
Total Assets | 136,535 | 1,957,374 | 73,759 | ||||||||||||
LIABILITIES: | |||||||||||||||
Payables: | |||||||||||||||
Collateral received on loaned securities | 2,776 | 57,004 | 1,982 | ||||||||||||
Investments purchased | 405 | 31,864 | — | ||||||||||||
Capital shares redeemed | 3 | 2,385 | 19 | ||||||||||||
Variation margin on open futures contracts | — | — | 1 | ||||||||||||
Accrued foreign capital gains taxes | 44 | — | — | ||||||||||||
Accrued expenses and other payables: | |||||||||||||||
Investment advisory fees | 85 | 1,367 | 23 | ||||||||||||
Administration fees | 7 | 89 | 3 | ||||||||||||
Custodian fees | 10 | 44 | 2 | ||||||||||||
Transfer agent fees | 3 | 459 | 6 | ||||||||||||
Compliance fees | — | (d) | 1 | — | (d) | ||||||||||
Trustees' fees | 44 | 10 | 51 | ||||||||||||
12b-1 fees | 1 | 13 | 1 | ||||||||||||
Other accrued expenses | 17 | 153 | 18 | ||||||||||||
Total Liabilities | 3,395 | 93,389 | 2,106 | ||||||||||||
NET ASSETS: | |||||||||||||||
Capital | 139,819 | 1,736,242 | 73,081 | ||||||||||||
Total distributable earnings/(loss) | (6,679 | ) | 127,743 | (1,428 | ) | ||||||||||
Net Assets | $ | 133,140 | $ | 1,863,985 | $ | 71,653 | |||||||||
Net Assets | |||||||||||||||
Class A Shares | $ | 4,550 | $ | 108,115 | $ | 11,472 | |||||||||
Class C Shares | 204 | 4,327 | 727 | ||||||||||||
Class I Shares | 2,579 | 1,014,425 | — | ||||||||||||
Class R6 Shares | 119,275 | 73,480 | 25,999 | ||||||||||||
Class Y Shares | 6,532 | 663,638 | 33,455 | ||||||||||||
Total | $ | 133,140 | $ | 1,863,985 | $ | 71,653 | |||||||||
Shares (unlimited number of shares authorized with a par value of $0.001 per share): | |||||||||||||||
Class A Shares | 701 | 8,425 | 1,157 | ||||||||||||
Class C Shares | 32 | 346 | 73 | ||||||||||||
Class I Shares | 395 | 78,403 | — | ||||||||||||
Class R6 Shares | 18,167 | 5,654 | 2,616 | ||||||||||||
Class Y Shares | 1,007 | 51,528 | 3,367 | ||||||||||||
Total | 20,302 | 144,356 | 7,213 | ||||||||||||
Net asset value, offering (except Class A Shares) and redemption price per share: (e) | |||||||||||||||
Class A Shares | $ | 6.49 | $ | 12.83 | $ | 9.91 | |||||||||
Class C Shares (f) | 6.46 | 12.51 | 9.99 | ||||||||||||
Class I Shares | 6.53 | 12.94 | — | ||||||||||||
Class R6 Shares | 6.57 | 13.00 | 9.94 | ||||||||||||
Class Y Shares | 6.48 | 12.88 | 9.94 | ||||||||||||
Maximum Sales Charge — Class A Shares | 5.75 | % | 5.75 | % | 2.00 | % | |||||||||
Maximum offering price (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent) per share — Class A Shares | $ | 6.89 | $ | 13.61 | $ | 10.11 |
(a) Includes $2,626 of securities on loan.
(b) Includes $54,859 of securities on loan.
(c) Includes $1,924 of securities on loan.
(d) Rounds to less than $1 thousand.
(e) Per share amount may not recalculate due to rounding of net assets and/or shares outstanding.
(f) Redemption price per share varies by the length of time shares are held.
See notes to financial statements.
124
Victory Portfolios | Statements of Operations For the Year Ended June 30, 2020 |
(Amounts in Thousands)
Victory Integrity Discovery Fund | Victory Integrity Mid-Cap Value Fund | Victory Integrity Small-Cap Value Fund | |||||||||||||
Investment Income: | |||||||||||||||
Dividends | $ | 1,378 | $ | 5,029 | $ | 31,353 | |||||||||
Interest | 44 | 41 | 467 | ||||||||||||
Securities lending (net of fees) | 36 | 15 | 1,158 | ||||||||||||
Total Income | 1,458 | 5,085 | 32,978 | ||||||||||||
Expenses: | |||||||||||||||
Investment advisory fees | 1,047 | 1,523 | 17,799 | ||||||||||||
Administration fees | 63 | 122 | 1,244 | ||||||||||||
Sub-Administration fees | 14 | 14 | 14 | ||||||||||||
12b-1 fees — Class A Shares | 106 | 20 | 281 | ||||||||||||
12b-1 fees — Class C Shares | 45 | — | (a) | 86 | |||||||||||
12b-1 fees — Class R Shares | 14 | — | 40 | ||||||||||||
Custodian fees | 8 | 12 | 94 | ||||||||||||
Transfer agent fees — Class A Shares | 75 | 13 | 289 | ||||||||||||
Transfer agent fees — Class C Shares | 5 | — | (a) | 14 | |||||||||||
Transfer agent fees — Class R Shares | 11 | — | 24 | ||||||||||||
Transfer agent fees — Class R6 Shares | — | 11 | 94 | ||||||||||||
Transfer agent fees — Class Y Shares | 127 | 33 | 1,248 | ||||||||||||
Trustees' fees | 7 | 15 | 183 | ||||||||||||
Compliance fees | 1 | 2 | 17 | ||||||||||||
Legal and audit fees | 14 | 20 | 119 | ||||||||||||
State registration and filing fees | 49 | 63 | 103 | ||||||||||||
Other expenses | 21 | 41 | 343 | ||||||||||||
Total Expenses | 1,607 | 1,889 | 21,992 | ||||||||||||
Expenses waived/reimbursed by Adviser | (9 | ) | (615 | ) | (8 | ) | |||||||||
Net Expenses | 1,598 | 1,274 | 21,984 | ||||||||||||
Net Investment Income (Loss) | (140 | ) | 3,811 | 10,994 | |||||||||||
Realized/Unrealized Gains (Losses) from Investments: | |||||||||||||||
Net realized gains (losses) from investment securities | (10,099 | ) | (20,430 | ) | (254,708 | ) | |||||||||
Net change in unrealized appreciation/depreciation on investments securities | (18,876 | ) | (17,425 | ) | (257,100 | ) | |||||||||
Net realized/unrealized gains (losses) on investments | (28,975 | ) | (37,855 | ) | (511,808 | ) | |||||||||
Change in net assets resulting from operations | $ | (29,115 | ) | $ | (34,044 | ) | $ | (500,814 | ) |
(a) Rounds to less than $1 thousand.
See notes to financial statements.
125
Victory Portfolios | Statements of Operations For the Year Ended June 30, 2020 |
(Amounts in Thousands)
Victory Integrity Small/Mid-Cap Value Fund | Victory Munder Multi-Cap Fund | Victory S&P 500 Index Fund | |||||||||||||
Investment Income: | |||||||||||||||
Dividends | $ | 2,244 | $ | 5,240 | $ | 4,249 | |||||||||
Interest | 27 | 49 | 17 | ||||||||||||
Securities lending (net of fees) | 23 | 16 | 7 | ||||||||||||
Total Income | 2,294 | 5,305 | 4,273 | ||||||||||||
Expenses: | |||||||||||||||
Investment advisory fees | 1,021 | 2,767 | 433 | ||||||||||||
Administration fees | 77 | 222 | 130 | ||||||||||||
Sub-Administration fees | 14 | 14 | 15 | ||||||||||||
12b-1 fees — Class A Shares | 9 | 826 | 240 | ||||||||||||
12b-1 fees — Class C Shares | — | 82 | — | ||||||||||||
12b-1 fees — Class R Shares | — | — | 70 | ||||||||||||
Custodian fees | 7 | 17 | 11 | ||||||||||||
Transfer agent fees — Class A Shares | 4 | 774 | 115 | ||||||||||||
Transfer agent fees — Class C Shares | — | 16 | — | ||||||||||||
Transfer agent fees — Class R Shares | — | — | 10 | ||||||||||||
Transfer agent fees — Class R6 Shares | 1 | — | — | ||||||||||||
Transfer agent fees — Class Y Shares | 12 | 33 | 41 | ||||||||||||
Trustees' fees | 12 | 8 | 14 | ||||||||||||
Compliance fees | 1 | 3 | 2 | ||||||||||||
Legal and audit fees | 15 | 30 | 22 | ||||||||||||
State registration and filing fees | 49 | 49 | 42 | ||||||||||||
Other expenses | 48 | 97 | 53 | ||||||||||||
Total Expenses | 1,270 | 4,938 | 1,198 | ||||||||||||
Expenses waived/reimbursed by Adviser | (185 | ) | (2 | ) | — | ||||||||||
Net Expenses | 1,085 | 4,936 | 1,198 | ||||||||||||
Net Investment Income (Loss) | 1,209 | 369 | 3,075 | ||||||||||||
Realized/Unrealized Gains (Losses) from Investments: | |||||||||||||||
Net realized gains (losses) from investment securities | (13,324 | ) | (9,321 | ) | 27,057 | ||||||||||
Net realized gains (losses) from futures contracts | — | — | 177 | ||||||||||||
Net change in unrealized appreciation/depreciation on investment securities | (14,023 | ) | 14,670 | (15,349 | ) | ||||||||||
Net change in unrealized appreciation/depreciation on futures contracts | — | — | (32 | ) | |||||||||||
Net realized/unrealized gains (losses) on investments | (27,347 | ) | 5,349 | 11,853 | |||||||||||
Change in net assets resulting from operations | $ | (26,138 | ) | $ | 5,718 | $ | 14,928 |
See notes to financial statements.
126
Victory Portfolios | Statements of Operations For the Year Ended June 30, 2020 |
(Amounts in Thousands)
Victory Munder Mid-Cap Core Growth Fund | Victory Munder Small Cap Growth Fund | Victory Trivalent Emerging Markets Small-Cap Fund | |||||||||||||
Investment Income: | |||||||||||||||
Dividends | $ | 8,076 | $ | 32 | $ | 257 | |||||||||
Interest | 93 | 2 | — | (a) | |||||||||||
Securities lending (net of fees) | 210 | 39 | 2 | ||||||||||||
Foreign tax withholding | — | — | (a) | (31 | ) | ||||||||||
Total Income | 8,379 | 73 | 228 | ||||||||||||
Expenses: | |||||||||||||||
Investment advisory fees | 7,260 | 82 | 89 | ||||||||||||
Administration fees | 578 | 6 | 5 | ||||||||||||
Sub-Administration fees | 14 | 14 | 14 | ||||||||||||
12b-1 fees — Class A Shares | 594 | 1 | 2 | ||||||||||||
12b-1 fees — Class C Shares | 206 | — | — | ||||||||||||
12b-1 fees — Class R Shares | 77 | — | — | ||||||||||||
Custodian fees | 42 | 2 | 35 | ||||||||||||
Transfer agent fees — Class A Shares | 420 | — | (a) | 2 | |||||||||||
Transfer agent fees — Class C Shares | 23 | — | — | ||||||||||||
Transfer agent fees — Class I Shares | — | 1 | — | ||||||||||||
Transfer agent fees — Class R Shares | 42 | — | — | ||||||||||||
Transfer agent fees — Class R6 Shares | 3 | — | — | ||||||||||||
Transfer agent fees — Class Y Shares | 979 | — | (a) | 12 | |||||||||||
Trustees' fees | 91 | 2 | 2 | ||||||||||||
Compliance fees | 8 | — | (a) | — | (a) | ||||||||||
Legal and audit fees | 61 | 8 | 31 | ||||||||||||
State registration and filing fees | 99 | 9 | 7 | ||||||||||||
Interfund lending fees | — | (a) | — | — | |||||||||||
Other expenses | 93 | 5 | 22 | ||||||||||||
Total Expenses | 10,590 | 130 | 221 | ||||||||||||
Expenses waived/reimbursed by Adviser | (16 | ) | (19 | ) | (99 | ) | |||||||||
Net Expenses | 10,574 | 111 | 122 | ||||||||||||
Net Investment Income (Loss) | (2,195 | ) | (38 | ) | 106 | ||||||||||
Realized/Unrealized Gains (Losses) from Investments: | |||||||||||||||
Net realized gains (losses) from investment securities and foreign currency translations | 254,589 | 1,238 | (722 | ) | |||||||||||
Foreign refunds on realized gains | — | — | 4 | ||||||||||||
Net change in unrealized appreciation/depreciation on investment securities and foreign currency translations | (273,091 | ) | 92 | 603 | |||||||||||
Net change in accrued foreign taxes on unrealized gains | — | — | (3 | ) | |||||||||||
Net realized/unrealized gains (losses) on investments | (18,502 | ) | 1,330 | (118 | ) | ||||||||||
Change in net assets resulting from operations | $ | (20,697 | ) | $ | 1,292 | $ | (12 | ) |
(a) Rounds to less than $1 thousand.
See notes to financial statements.
127
Victory Portfolios | Statements of Operations For the Year Ended June 30, 2020 |
(Amounts in Thousands)
Victory Trivalent International Fund-Core Equity | Victory Trivalent International Small-Cap Fund | Victory INCORE Total Return Bond Fund | |||||||||||||
Investment Income: | |||||||||||||||
Dividends | $ | 2,906 | $ | 36,313 | $ | — | |||||||||
Interest | 13 | 206 | 1,998 | ||||||||||||
Securities lending (net of fees) | 10 | 702 | 2 | ||||||||||||
Foreign tax withholding | (285 | ) | (4,319 | ) | — | ||||||||||
Total Income | 2,644 | 32,902 | 2,000 | ||||||||||||
Expenses: | |||||||||||||||
Investment advisory fees | 805 | 16,609 | 279 | ||||||||||||
Administration fees | 61 | 1,075 | 42 | ||||||||||||
Sub-Administration fees | 14 | 14 | 14 | ||||||||||||
12b-1 fees — Class A Shares | 13 | 279 | 30 | ||||||||||||
12b-1 fees — Class C Shares | 3 | 47 | 6 | ||||||||||||
Custodian fees | 77 | 272 | 9 | ||||||||||||
Transfer agent fees — Class A Shares | 12 | 368 | 21 | ||||||||||||
Transfer agent fees — Class C Shares | 1 | 6 | 1 | ||||||||||||
Transfer agent fees — Class I Shares | — | (a) | 1,333 | — | |||||||||||
Transfer agent fees — Class R6 Shares | — | (a) | 3 | — | (a) | ||||||||||
Transfer agent fees — Class Y Shares | 3 | 948 | 8 | ||||||||||||
Trustees' fees | 2 | 145 | — | (a) | |||||||||||
Compliance fees | 1 | 14 | 1 | ||||||||||||
Legal and audit fees | 18 | 117 | 14 | ||||||||||||
State registration and filing fees | 67 | 120 | 53 | ||||||||||||
Interfund lending fees | — | — | (a) | — | |||||||||||
Other expenses | 36 | 349 | 22 | ||||||||||||
Total Expenses | 1,113 | 21,699 | 500 | ||||||||||||
Expenses waived/reimbursed by Adviser | (522 | ) | (3,170 | ) | (52 | ) | |||||||||
Net Expenses | 591 | 18,529 | 448 | ||||||||||||
Net Investment Income (Loss) | 2,053 | 14,373 | 1,552 | ||||||||||||
Realized/Unrealized Gains (Losses) from Investments: | |||||||||||||||
Net realized gains (losses) from investment securities and foreign currency translations | (4,897 | ) | (70,162 | ) | 1,752 | ||||||||||
Foreign refund on realized gains | 2 | — | — | ||||||||||||
Net realized gains (losses) from futures contracts | — | — | 644 | ||||||||||||
Net realized gains (losses) from swap agreements | — | — | (60 | ) | |||||||||||
Net change in unrealized appreciation/depreciation on investment securities and foreign currency translations | (1,094 | ) | 41,304 | 1,534 | |||||||||||
Net change in accrued foreign taxes on unrealized gains | (44 | ) | — | — | |||||||||||
Net change in unrealized appreciation/depreciation on futures contracts | — | — | (127 | ) | |||||||||||
Net change in unrealized appreciation/depreciation on swap agreements | — | — | (84 | ) | |||||||||||
Net realized/unrealized gains (losses) on investments | (6,033 | ) | (28,858 | ) | 3,659 | ||||||||||
Change in net assets resulting from operations | $ | (3,980 | ) | $ | (14,485 | ) | $ | 5,211 |
(a) Rounds to less than $1 thousand.
See notes to financial statements.
128
Victory Portfolios | Statements of Changes in Net Assets |
(Amounts in Thousands)
Victory Integrity Discovery Fund | Victory Integrity Mid-Cap Value Fund | Victory Integrity Small-Cap Value Fund | |||||||||||||||||||||||||
Year Ended June 30, 2020 | Year Ended June 30, 2019 | Year Ended June 30, 2020 | Year Ended June 30, 2019 | Year Ended June 30, 2020 | Year Ended June 30, 2019 | ||||||||||||||||||||||
From Investment Activities: | |||||||||||||||||||||||||||
Operations: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | (140 | ) | $ | (330 | ) | $ | 3,811 | $ | 1,103 | $ | 10,994 | $ | 13,966 | |||||||||||||
Net realized gains (losses) from investments | (10,099 | ) | 8,051 | (20,430 | ) | 381 | (254,708 | ) | 93,034 | ||||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | (18,876 | ) | (26,515 | ) | (17,425 | ) | 53 | (257,100 | ) | (275,994 | ) | ||||||||||||||||
Change in net assets resulting from operations | (29,115 | ) | (18,794 | ) | (34,044 | ) | 1,537 | (500,814 | ) | (168,994 | ) | ||||||||||||||||
Distributions to Shareholders: | |||||||||||||||||||||||||||
Class A Shares | (1,198 | ) | (7,176 | ) | (45 | ) | (344 | ) | (569 | ) | (19,964 | ) | |||||||||||||||
Class C Shares | (191 | ) | (1,331 | ) | — | (a) | — | (49 | ) | (1,740 | ) | ||||||||||||||||
Class R Shares | (98 | ) | (416 | ) | — | — | (43 | ) | (1,388 | ) | |||||||||||||||||
Class R6 Shares | — | — | (1,711 | ) | (3,355 | ) | (9,755 | ) | (132,215 | ) | |||||||||||||||||
Class Y Shares | (1,529 | ) | (7,675 | ) | (108 | ) | (1,186 | ) | (6,764 | ) | (119,134 | ) | |||||||||||||||
Change in net assets resulting from distributions to shareholders | (3,016 | ) | (16,598 | ) | (1,864 | ) | (4,885 | ) | (17,180 | ) | (274,441 | ) | |||||||||||||||
Change in net assets resulting from capital transactions | (37,894 | ) | 8,479 | 153,096 | 17,762 | (238,280 | ) | 106,806 | |||||||||||||||||||
Change in net assets | (70,025 | ) | (26,913 | ) | 117,188 | 14,414 | (756,274 | ) | (336,629 | ) | |||||||||||||||||
Net Assets: | |||||||||||||||||||||||||||
Beginning of period | 132,342 | 159,255 | 85,285 | 70,871 | 2,323,576 | 2,660,205 | |||||||||||||||||||||
End of period | $ | 62,317 | $ | 132,342 | $ | 202,473 | $ | 85,285 | $ | 1,567,302 | $ | 2,323,576 |
(a) Rounds to less than $1 thousand.
(continues on next page)
See notes to financial statements.
129
Victory Portfolios | Statements of Changes in Net Assets |
(Amounts in Thousands) (continued)
Victory Integrity Discovery Fund | Victory Integrity Mid-Cap Value Fund | Victory Integrity Small-Cap Value Fund | |||||||||||||||||||||||||
Year Ended June 30, 2020 | Year Ended June 30, 2019 | Year Ended June 30, 2020 | Year Ended June 30, 2019 | Year Ended June 30, 2020 | Year Ended June 30, 2019 | ||||||||||||||||||||||
Capital Transactions: | |||||||||||||||||||||||||||
Class A Shares | |||||||||||||||||||||||||||
Proceeds from shares issued | $ | 4,226 | $ | 5,964 | $ | 3,987 | $ | 4,527 | $ | 23,461 | $ | 34,166 | |||||||||||||||
Distributions reinvested | 1,058 | 6,337 | 44 | 341 | 495 | 15,897 | |||||||||||||||||||||
Cost of shares redeemed | (13,704 | ) | (13,955 | ) | (1,868 | ) | (1,512 | ) | (56,674 | ) | (96,628 | ) | |||||||||||||||
Total Class A Shares | $ | (8,420 | ) | $ | (1,654 | ) | $ | 2,163 | $ | 3,356 | $ | (32,718 | ) | $ | (46,565 | ) | |||||||||||
Class C Shares | |||||||||||||||||||||||||||
Proceeds from shares issued | $ | 219 | $ | 1,696 | $ | 54 | $ | — | $ | 538 | $ | 999 | |||||||||||||||
Distributions reinvested | 168 | 1,211 | — | (a) | — | 47 | 1,688 | ||||||||||||||||||||
Cost of shares redeemed | (3,625 | ) | (3,611 | ) | — | — | (3,569 | ) | (5,266 | ) | |||||||||||||||||
Total Class C Shares | $ | (3,238 | ) | $ | (704 | ) | $ | 54 | $ | — | $ | (2,984 | ) | $ | (2,579 | ) | |||||||||||
Class R Shares | |||||||||||||||||||||||||||
Proceeds from shares issued | $ | 1,386 | $ | 757 | $ | — | $ | — | $ | 2,040 | $ | 3,717 | |||||||||||||||
Distributions reinvested | 85 | 319 | — | — | 35 | 1,050 | |||||||||||||||||||||
Cost of shares redeemed | (1,514 | ) | (631 | ) | — | — | (5,439 | ) | (6,857 | ) | |||||||||||||||||
Total Class R Shares | $ | (43 | ) | $ | 445 | $ | — | $ | — | $ | (3,364 | ) | $ | (2,090 | ) | ||||||||||||
Class R6 Shares | |||||||||||||||||||||||||||
Proceeds from shares issued | $ | — | $ | — | $ | 190,734 | $ | 61,340 | $ | 354,199 | $ | 642,491 | |||||||||||||||
Distributions reinvested | — | — | 1,707 | 3,354 | 9,428 | 131,665 | |||||||||||||||||||||
Cost of shares redeemed | — | — | (31,573 | ) | (11,093 | ) | (292,721 | ) | (297,839 | ) | |||||||||||||||||
Total Class R6 Shares | $ | — | $ | — | $ | 160,868 | $ | 53,601 | $ | 70,906 | $ | 476,317 | |||||||||||||||
Class Y Shares | |||||||||||||||||||||||||||
Proceeds from shares issued | $ | 24,172 | $ | 38,967 | $ | 4,409 | $ | 11,068 | $ | 224,939 | $ | 396,927 | |||||||||||||||
Distributions reinvested | 1,407 | 6,287 | 107 | 1,151 | 6,413 | 107,455 | |||||||||||||||||||||
Cost of shares redeemed | (51,772 | ) | (34,862 | ) | (14,505 | ) | (51,414 | ) | (501,472 | ) | (822,659 | ) | |||||||||||||||
Total Class Y Shares | $ | (26,193 | ) | $ | 10,392 | $ | (9,989 | ) | $ | (39,195 | ) | $ | (270,120 | ) | $ | (318,277 | ) | ||||||||||
Change in net assets resulting from capital transactions | $ | (37,894 | ) | $ | 8,479 | $ | 153,096 | $ | 17,762 | $ | (238,280 | ) | $ | 106,806 |
(continues on next page)
See notes to financial statements.
130
Victory Portfolios | Statements of Changes in Net Assets |
(Amounts in Thousands) (continued)
Victory Integrity Discovery Fund | Victory Integrity Mid-Cap Value Fund | Victory Integrity Small-Cap Value Fund | |||||||||||||||||||||||||
Year Ended June 30, 2020 | Year Ended June 30, 2019 | Year Ended June 30, 2020 | Year Ended June 30, 2019 | Year Ended June 30, 2020 | Year Ended June 30, 2019 | ||||||||||||||||||||||
Share Transactions: | |||||||||||||||||||||||||||
Class A Shares | |||||||||||||||||||||||||||
Issued | 159 | 164 | 250 | 266 | 846 | 1,018 | |||||||||||||||||||||
Reinvested | 31 | 220 | 2 | 22 | 15 | 564 | |||||||||||||||||||||
Redeemed | (495 | ) | (392 | ) | (116 | ) | (86 | ) | (1,943 | ) | (2,780 | ) | |||||||||||||||
Total Class A Shares | (305 | ) | (8 | ) | 136 | 202 | (1,082 | ) | (1,198 | ) | |||||||||||||||||
Class C Shares | |||||||||||||||||||||||||||
Issued | 12 | 71 | 3 | — | 22 | 31 | |||||||||||||||||||||
Reinvested | 7 | 60 | — | (a) | — | 2 | 69 | ||||||||||||||||||||
Redeemed | (182 | ) | (145 | ) | — | — | (143 | ) | (175 | ) | |||||||||||||||||
Total Class C Shares | (163 | ) | (14 | ) | 3 | — | (119 | ) | (75 | ) | |||||||||||||||||
Class R Shares | |||||||||||||||||||||||||||
Issued | 47 | 22 | — | — | 81 | 115 | |||||||||||||||||||||
Reinvested | 3 | 12 | — | — | 1 | 38 | |||||||||||||||||||||
Redeemed | (61 | ) | (19 | ) | — | — | (191 | ) | (202 | ) | |||||||||||||||||
Total Class R Shares | (11 | ) | 15 | — | — | (109 | ) | (49 | ) | ||||||||||||||||||
Class R6 Shares | |||||||||||||||||||||||||||
Issued | — | — | 10,669 | 3,175 | 13,497 | 16,509 | |||||||||||||||||||||
Reinvested | — | — | 88 | 216 | 265 | 4,473 | |||||||||||||||||||||
Redeemed | — | — | (1,948 | ) | (622 | ) | (10,043 | ) | (8,587 | ) | |||||||||||||||||
Total Class R6 Shares | — | — | 8,809 | 2,769 | 3,719 | 12,395 | |||||||||||||||||||||
Class Y Shares | |||||||||||||||||||||||||||
Issued | 815 | 1,053 | 259 | 623 | 8,217 | 11,317 | |||||||||||||||||||||
Reinvested | 37 | 198 | 6 | 74 | 182 | 3,678 | |||||||||||||||||||||
Redeemed | (1,830 | ) | (920 | ) | (852 | ) | (2,599 | ) | (18,245 | ) | (21,266 | ) | |||||||||||||||
Total Class Y Shares | (978 | ) | 331 | (587 | ) | (1,902 | ) | (9,846 | ) | (6,271 | ) | ||||||||||||||||
Change in Shares | (1,457 | ) | 324 | 8,361 | 1,069 | (7,437 | ) | 4,802 |
(a) Rounds to less than 1 thousand.
See notes to financial statements.
131
Victory Portfolios | Statements of Changes in Net Assets |
(Amounts in Thousands)
Victory Integrity Small/Mid-Cap Value Fund | Victory Munder Multi-Cap Fund | Victory S&P 500 Index Fund | |||||||||||||||||||||||||
Year Ended June 30, 2020 | Year Ended June 30, 2019 | Year Ended June 30, 2020 | Year Ended June 30, 2019 | Year Ended June 30, 2020 | Year Ended June 30, 2019 | ||||||||||||||||||||||
From Investment Activities: | |||||||||||||||||||||||||||
Operations: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | 1,209 | $ | 1,287 | $ | 369 | $ | 1,013 | $ | 3,075 | $ | 3,317 | |||||||||||||||
Net realized gains (losses) from investments | (13,324 | ) | (615 | ) | (9,321 | ) | 9,639 | 27,234 | 13,230 | ||||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | (14,023 | ) | (2,393 | ) | 14,670 | (1,122 | ) | (15,381 | ) | 4,953 | |||||||||||||||||
Change in net assets resulting from operations | (26,138 | ) | (1,721 | ) | 5,718 | 9,530 | 14,928 | 21,500 | |||||||||||||||||||
Distributions to Shareholders: | |||||||||||||||||||||||||||
Class A Shares | (22 | ) | (133 | ) | (9,781 | ) | (51,484 | ) | (20,471 | ) | (18,352 | ) | |||||||||||||||
Class C Shares | — | — | (265 | ) | (2,164 | ) | — | — | |||||||||||||||||||
Class R Shares | — | — | — | (42 | ) | (1,715 | ) | (1,523 | ) | ||||||||||||||||||
Class R6 Shares | (815 | ) | (3,648 | ) | — | — | — | — | |||||||||||||||||||
Class Y Shares | (283 | ) | (1,460 | ) | (917 | ) | (4,322 | ) | (5,159 | ) | (3,239 | ) | |||||||||||||||
Change in net assets resulting from distributions to shareholders | (1,120 | ) | (5,241 | ) | (10,963 | ) | (58,012 | ) | (27,345 | ) | (23,114 | ) | |||||||||||||||
Change in net assets resulting from capital transactions | 8,516 | 21,860 | (34,098 | ) | 8,923 | (8,722 | ) | 6,751 | |||||||||||||||||||
Change in net assets | (18,742 | ) | 14,898 | (39,343 | ) | (39,559 | ) | (21,139 | ) | 5,137 | |||||||||||||||||
Net Assets: | |||||||||||||||||||||||||||
Beginning of period | 134,839 | 119,941 | 387,012 | 426,571 | 234,651 | 229,514 | |||||||||||||||||||||
End of period | $ | 116,097 | $ | 134,839 | $ | 347,669 | $ | 387,012 | $ | 213,512 | $ | 234,651 |
(continues on next page)
See notes to financial statements.
132
Victory Portfolios | Statements of Changes in Net Assets |
(Amounts in Thousands) (continued)
Victory Integrity Small/Mid-Cap Value Fund | Victory Munder Multi-Cap Fund | Victory S&P 500 Index Fund | |||||||||||||||||||||||||
Year Ended June 30, 2020 | Year Ended June 30, 2019 | Year Ended June 30, 2020 | Year Ended June 30, 2019 | Year Ended June 30, 2020 | Year Ended June 30, 2019 | ||||||||||||||||||||||
Capital Transactions: | |||||||||||||||||||||||||||
Class A Shares | |||||||||||||||||||||||||||
Proceeds from shares issued | $ | 1,437 | $ | 1,941 | $ | 8,491 | $ | 16,228 | $ | 12,097 | $ | 18,921 | |||||||||||||||
Distributions reinvested | 22 | 133 | 8,468 | 43,987 | 17,860 | 16,274 | |||||||||||||||||||||
Cost of shares redeemed | (1,062 | ) | (1,278 | ) | (46,249 | ) | (45,595 | ) | (54,473 | ) | (38,679 | ) | |||||||||||||||
Total Class A Shares | $ | 397 | $ | 796 | $ | (29,290 | ) | $ | 14,620 | $ | (24,516 | ) | $ | (3,484 | ) | ||||||||||||
Class C Shares | |||||||||||||||||||||||||||
Proceeds from shares issued | $ | — | $ | — | $ | 401 | $ | 827 | $ | — | $ | — | |||||||||||||||
Distributions reinvested | — | — | 234 | 1,880 | — | — | |||||||||||||||||||||
Cost of shares redeemed | — | — | (4,844 | ) | (9,030 | ) | — | — | |||||||||||||||||||
Total Class C Shares | $ | — | $ | — | $ | (4,209 | ) | $ | (6,323 | ) | $ | — | $ | — | |||||||||||||
Class R Shares | |||||||||||||||||||||||||||
Proceeds from shares issued | $ | — | $ | — | $ | — | $ | 121 | $ | 4,926 | $ | 2,718 | |||||||||||||||
Distributions reinvested | — | — | — | 41 | 1,715 | 1,523 | |||||||||||||||||||||
Cost of shares redeemed | — | — | — | (536 | ) | (6,634 | ) | (6,607 | ) | ||||||||||||||||||
Total Class R Shares | $ | — | $ | — | $ | — | $ | (374 | ) | $ | 7 | $ | (2,366 | ) | |||||||||||||
Class R6 Shares | |||||||||||||||||||||||||||
Proceeds from shares issued | $ | 22,861 | $ | 87,432 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Distributions reinvested | 813 | 3,640 | — | — | — | — | |||||||||||||||||||||
Cost of shares redeemed | (20,141 | ) | (13,808 | ) | — | — | — | — | |||||||||||||||||||
Total Class R6 Shares | $ | 3,533 | $ | 77,264 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Class Y Shares | |||||||||||||||||||||||||||
Proceeds from shares issued | $ | 8,038 | $ | 15,525 | $ | 5,469 | $ | 5,746 | $ | 37,717 | $ | 18,127 | |||||||||||||||
Distributions reinvested | 268 | 1,442 | 645 | 2,912 | 4,878 | 3,035 | |||||||||||||||||||||
Cost of shares redeemed | (3,720 | ) | (73,167 | ) | (6,713 | ) | (7,658 | ) | (26,808 | ) | (8,561 | ) | |||||||||||||||
Total Class Y Shares | $ | 4,586 | $ | (56,200 | ) | $ | (599 | ) | $ | 1,000 | $ | 15,787 | $ | 12,601 | |||||||||||||
Change in net assets resulting from capital transactions | $ | 8,516 | $ | 21,860 | $ | (34,098 | ) | $ | 8,923 | $ | (8,722 | ) | $ | 6,751 |
(continues on next page)
See notes to financial statements.
133
Victory Portfolios | Statements of Changes in Net Assets |
(Amounts in Thousands) (continued)
Victory Integrity Small/Mid-Cap Value Fund | Victory Munder Multi-Cap Fund | Victory S&P 500 Index Fund | |||||||||||||||||||||||||
Year Ended June 30, 2020 | Year Ended June 30, 2019 | Year Ended June 30, 2020 | Year Ended June 30, 2019 | Year Ended June 30, 2020 | Year Ended June 30, 2019 | ||||||||||||||||||||||
Share Transactions: | |||||||||||||||||||||||||||
Class A Shares | |||||||||||||||||||||||||||
Issued | 97 | 119 | 214 | 420 | 612 | 922 | |||||||||||||||||||||
Reinvested | 1 | 9 | 204 | 1,330 | 880 | 885 | |||||||||||||||||||||
Redeemed | (74 | ) | (80 | ) | (1,212 | ) | (1,134 | ) | (2,651 | ) | (1,833 | ) | |||||||||||||||
Total Class A Shares | 24 | 48 | (794 | ) | 616 | (1,159 | ) | (26 | ) | ||||||||||||||||||
Class C Shares | |||||||||||||||||||||||||||
Issued | — | — | 13 | 29 | — | — | |||||||||||||||||||||
Reinvested | — | — | 7 | 73 | — | — | |||||||||||||||||||||
Redeemed | — | — | (157 | ) | (267 | ) | — | — | |||||||||||||||||||
Total Class C Shares | — | — | (137 | ) | (165 | ) | — | — | |||||||||||||||||||
Class R Shares | |||||||||||||||||||||||||||
Issued | — | — | — | 3 | 246 | 130 | |||||||||||||||||||||
Reinvested | — | — | — | 1 | 85 | 84 | |||||||||||||||||||||
Redeemed | — | — | — | (14 | ) | (326 | ) | (318 | ) | ||||||||||||||||||
Total Class R Shares | — | — | — | (10 | ) | 5 | (104 | ) | |||||||||||||||||||
Class R6 Shares | |||||||||||||||||||||||||||
Issued | 1,535 | 4,833 | — | — | — | — | |||||||||||||||||||||
Reinvested | 46 | 251 | — | — | — | — | |||||||||||||||||||||
Redeemed | (1,330 | ) | (837 | ) | — | — | — | — | |||||||||||||||||||
Total Class R6 Shares | 251 | 4,247 | — | — | — | — | |||||||||||||||||||||
Class Y Shares | |||||||||||||||||||||||||||
Issued | 515 | 876 | 142 | 130 | 1,848 | 841 | |||||||||||||||||||||
Reinvested | 15 | 100 | 14 | 81 | 239 | 165 | |||||||||||||||||||||
Redeemed | (266 | ) | (3,980 | ) | (162 | ) | (178 | ) | (1,294 | ) | (411 | ) | |||||||||||||||
Total Class Y Shares | 264 | (3,004 | ) | (6 | ) | 33 | 793 | 595 | |||||||||||||||||||
Change in Shares | 539 | 1,291 | (937 | ) | 474 | (361 | ) | 465 |
See notes to financial statements.
134
Victory Portfolios | Statements of Changes in Net Assets |
(Amounts in Thousands)
Victory Munder Mid-Cap Core Growth Fund | Victory Munder Small Cap Growth Fund | Victory Trivalent Emerging Markets Small-Cap Fund | |||||||||||||||||||||||||
Year Ended June 30, 2020 | Year Ended June 30, 2019 | Year Ended June 30, 2020 | Year Ended June 30, 2019 | Year Ended June 30, 2020 | Year Ended June 30, 2019 | ||||||||||||||||||||||
From Investment Activities: | |||||||||||||||||||||||||||
Operations: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | (2,195 | ) | $ | (5,485 | ) | $ | (38 | ) | $ | (60 | ) | $ | 106 | $ | 134 | |||||||||||
Net realized gains (losses) from investments | 254,589 | 814,693 | 1,238 | 750 | (718 | ) | (914 | ) | |||||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | (273,091 | ) | (788,921 | ) | 92 | 27 | 600 | 264 | |||||||||||||||||||
Change in net assets resulting from operations | (20,697 | ) | 20,287 | 1,292 | 717 | (12 | ) | (516 | ) | ||||||||||||||||||
Distributions to Shareholders: | |||||||||||||||||||||||||||
Class A Shares | (127,008 | ) | (122,371 | ) | (18 | ) | (19 | ) | (6 | ) | (88 | ) | |||||||||||||||
Class C Shares | (17,343 | ) | (15,428 | ) | — | — | — | — | |||||||||||||||||||
Class I Shares | — | — | (702 | ) | (836 | ) | — | — | |||||||||||||||||||
Class R Shares | (8,983 | ) | (7,032 | ) | — | — | — | — | |||||||||||||||||||
Class R6 Shares | (74,101 | ) | (237,841 | ) | — | — | — | — | |||||||||||||||||||
Class Y Shares | (283,629 | ) | (392,568 | ) | (6 | ) | (7 | ) | (74 | ) | (593 | ) | |||||||||||||||
Change in net assets resulting from distributions to shareholders | (511,064 | ) | (775,240 | ) | (726 | ) | (862 | ) | (80 | ) | (681 | ) | |||||||||||||||
Change in net assets resulting from capital transactions | (342,469 | ) | (1,366,402 | ) | 950 | 1,683 | (390 | ) | 1,083 | ||||||||||||||||||
Change in net assets | (874,230 | ) | (2,121,355 | ) | 1,516 | 1,538 | (482 | ) | (114 | ) | |||||||||||||||||
Net Assets: | |||||||||||||||||||||||||||
Beginning of period | 1,458,593 | 3,579,948 | 9,300 | 7,762 | 8,910 | 9,024 | |||||||||||||||||||||
End of period | $ | 584,363 | $ | 1,458,593 | $ | 10,816 | $ | 9,300 | $ | 8,428 | $ | 8,910 |
(continues on next page)
See notes to financial statements.
135
Victory Portfolios | Statements of Changes in Net Assets |
(Amounts in Thousands) (continued)
Victory Munder Mid-Cap Core Growth Fund | Victory Munder Small Cap Growth Fund | Victory Trivalent Emerging Markets Small-Cap Fund | |||||||||||||||||||||||||
Year Ended June 30, 2020 | Year Ended June 30, 2019 | Year Ended June 30, 2020 | Year Ended June 30, 2019 | Year Ended June 30, 2020 | Year Ended June 30, 2019 | ||||||||||||||||||||||
Capital Transactions: | |||||||||||||||||||||||||||
Class A Shares | |||||||||||||||||||||||||||
Proceeds from shares issued | $ | 29,605 | $ | 50,553 | $ | 242 | $ | 20 | $ | 173 | $ | 229 | |||||||||||||||
Distributions reinvested | 114,821 | 106,318 | 18 | 19 | 6 | 88 | |||||||||||||||||||||
Cost of shares redeemed | (115,796 | ) | (320,275 | ) | (98 | ) | (19 | ) | (226 | ) | (390 | ) | |||||||||||||||
Total Class A Shares | $ | 28,630 | $ | (163,404 | ) | $ | 162 | $ | 20 | $ | (47 | ) | $ | (73 | ) | ||||||||||||
Class C Shares | |||||||||||||||||||||||||||
Proceeds from shares issued | $ | 1,741 | $ | 3,646 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Distributions reinvested | 15,847 | 13,704 | — | — | — | — | |||||||||||||||||||||
Cost of shares redeemed | (12,234 | ) | (27,433 | ) | — | — | — | — | |||||||||||||||||||
Total Class C Shares | $ | 5,354 | $ | (10,083 | ) | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Class I Shares | |||||||||||||||||||||||||||
Proceeds from shares issued | $ | — | $ | — | $ | 106 | $ | 696 | $ | — | $ | — | |||||||||||||||
Distributions reinvested | — | — | 701 | 836 | — | — | |||||||||||||||||||||
Cost of shares redeemed | — | — | (25 | ) | — | (a) | — | — | |||||||||||||||||||
Total Class I Shares | $ | — | $ | — | $ | 782 | $ | 1,532 | $ | — | $ | — | |||||||||||||||
Class R Shares | |||||||||||||||||||||||||||
Proceeds from shares issued | $ | 2,169 | $ | 3,677 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Distributions reinvested | 8,785 | 6,797 | — | — | — | — | |||||||||||||||||||||
Cost of shares redeemed | (6,902 | ) | (11,444 | ) | — | — | — | — | |||||||||||||||||||
Total Class R Shares | $ | 4,052 | $ | (970 | ) | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Class R6 Shares | |||||||||||||||||||||||||||
Proceeds from shares issued | $ | 24,724 | $ | 481,940 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Distributions reinvested | 73,891 | 236,091 | — | — | — | — | |||||||||||||||||||||
Cost of shares redeemed | (221,336 | ) | (844,200 | ) | — | — | — | — | |||||||||||||||||||
Total Class R6 Shares | $ | (122,721 | ) | $ | (126,169 | ) | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Class Y Shares | |||||||||||||||||||||||||||
Proceeds from shares issued | $ | 133,669 | $ | 209,143 | $ | — | $ | 1,194 | $ | 449 | $ | 1,370 | |||||||||||||||
Distributions reinvested | 256,344 | 365,981 | 6 | 7 | 74 | 593 | |||||||||||||||||||||
Cost of shares redeemed | (647,797 | ) | (1,640,900 | ) | — | (1,070 | ) | (866 | ) | (807 | ) | ||||||||||||||||
Total Class Y Shares | $ | (257,784 | ) | $ | (1,065,776 | ) | $ | 6 | $ | 131 | $ | (343 | ) | $ | 1,156 | ||||||||||||
Change in net assets resulting from capital transactions | $ | (342,469 | ) | $ | (1,366,402 | ) | $ | 950 | $ | 1,683 | $ | (390 | ) | $ | 1,083 |
(a) Rounds to less than 1 thousand.
(continues on next page)
See notes to financial statements.
136
Victory Portfolios | Statements of Changes in Net Assets |
(Amounts in Thousands) (continued)
Victory Munder Mid-Cap Core Growth Fund | Victory Munder Small Cap Growth Fund | Victory Trivalent Emerging Markets Small-Cap Fund | |||||||||||||||||||||||||
Year Ended June 30, 2020 | Year Ended June 30, 2019 | Year Ended June 30, 2020 | Year Ended June 30, 2019 | Year Ended June 30, 2020 | Year Ended June 30, 2019 | ||||||||||||||||||||||
Share Transactions: | |||||||||||||||||||||||||||
Class A Shares | |||||||||||||||||||||||||||
Issued | 2,039 | 2,084 | 18 | 1 | 14 | 18 | |||||||||||||||||||||
Reinvested | 8,445 | 5,520 | 1 | 2 | 1 | 8 | |||||||||||||||||||||
Redeemed | (7,341 | ) | (11,543 | ) | (8 | ) | (2 | ) | (21 | ) | (33 | ) | |||||||||||||||
Total Class A Shares | 3,143 | (3,939 | ) | 11 | 1 | (6 | ) | (7 | ) | ||||||||||||||||||
Class C Shares | |||||||||||||||||||||||||||
Issued | 252 | 196 | — | — | — | — | |||||||||||||||||||||
Reinvested | 2,542 | 1,012 | — | — | — | — | |||||||||||||||||||||
Redeemed | (1,609 | ) | (1,393 | ) | — | — | — | — | |||||||||||||||||||
Total Class C Shares | 1,185 | (185 | ) | — | — | — | — | ||||||||||||||||||||
Class I Shares | |||||||||||||||||||||||||||
Issued | — | — | 8 | 47 | — | — | |||||||||||||||||||||
Reinvested | — | — | 50 | 79 | — | — | |||||||||||||||||||||
Redeemed | — | — | (1 | ) | — | — | — | ||||||||||||||||||||
Total Class I Shares | — | — | 57 | 126 | — | — | |||||||||||||||||||||
Class R Shares | |||||||||||||||||||||||||||
Issued | 188 | 155 | — | — | — | — | |||||||||||||||||||||
Reinvested | 752 | 381 | — | — | — | — | |||||||||||||||||||||
Redeemed | (514 | ) | (453 | ) | — | — | — | — | |||||||||||||||||||
Total Class R Shares | 426 | 83 | — | — | — | — | |||||||||||||||||||||
Class R6 Shares | |||||||||||||||||||||||||||
Issued | 1,234 | 13,171 | — | — | — | — | |||||||||||||||||||||
Reinvested | 4,387 | 10,877 | — | — | — | — | |||||||||||||||||||||
Redeemed | (9,938 | ) | (30,440 | ) | — | — | — | — | |||||||||||||||||||
Total Class R6 Shares | (4,317 | ) | (6,392 | ) | — | — | — | — | |||||||||||||||||||
Class Y Shares | |||||||||||||||||||||||||||
Issued | 6,000 | 7,541 | — | 85 | 41 | 114 | |||||||||||||||||||||
Reinvested | 15,847 | 17,244 | — | (a) | 1 | 6 | 55 | ||||||||||||||||||||
Redeemed | (35,576 | ) | (53,734 | ) | — | (85 | ) | (80 | ) | (69 | ) | ||||||||||||||||
Total Class Y Shares | (13,729 | ) | (28,949 | ) | — | (a) | 1 | (33 | ) | 100 | |||||||||||||||||
Change in Shares | (13,292 | ) | (39,382 | ) | 68 | 128 | (39 | ) | 93 |
(a) Rounds to less than 1 thousand.
See notes to financial statements.
137
Victory Portfolios | Statements of Changes in Net Assets |
(Amounts in Thousands)
Victory Trivalent International Fund-Core Equity | Victory Trivalent International Small-Cap Fund | Victory INCORE Total Return Bond Fund | |||||||||||||||||||||||||
Year Ended June 30, 2020 | Year Ended June 30, 2019 | Year Ended June 30, 2020 | Year Ended June 30, 2019 | Year Ended June 30, 2020 | Year Ended June 30, 2019 | ||||||||||||||||||||||
From Investment Activities: | |||||||||||||||||||||||||||
Operations: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | 2,053 | $ | 561 | $ | 14,373 | $ | 22,210 | $ | 1,552 | $ | 2,074 | |||||||||||||||
Net realized gains (losses) from investments | (4,895 | ) | (34 | ) | (70,162 | ) | (85,679 | ) | 2,336 | (1,146 | ) | ||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | (1,138 | ) | (1,045 | ) | 41,304 | (66,159 | ) | 1,323 | 3,342 | ||||||||||||||||||
Change in net assets resulting from operations | (3,980 | ) | (518 | ) | (14,485 | ) | (129,628 | ) | 5,211 | 4,270 | |||||||||||||||||
Distributions to Shareholders: | |||||||||||||||||||||||||||
Class A Shares | (48 | ) | (201 | ) | (1,886 | ) | (3,262 | ) | (300 | ) | (363 | ) | |||||||||||||||
Class C Shares | — | (a) | (16 | ) | (52 | ) | (105 | ) | (10 | ) | (18 | ) | |||||||||||||||
Class I Shares | (33 | ) | (84 | ) | (21,459 | ) | (25,515 | ) | — | — | |||||||||||||||||
Class R6 Shares | (902 | ) | (215 | ) | (989 | ) | (1,115 | ) | (710 | ) | (829 | ) | |||||||||||||||
Class Y Shares | (96 | ) | (463 | ) | (13,429 | ) | (20,518 | ) | (881 | ) | (1,392 | ) | |||||||||||||||
Change in net assets resulting from distributions to shareholders | (1,079 | ) | (979 | ) | (37,815 | ) | (50,515 | ) | (1,901 | ) | (2,602 | ) | |||||||||||||||
Change in net assets resulting from capital transactions | 116,106 | (3,741 | ) | 108,621 | 195,590 | (434 | ) | (24,527 | ) | ||||||||||||||||||
Change in net assets | 111,047 | (5,238 | ) | 56,321 | 15,447 | 2,876 | (22,859 | ) | |||||||||||||||||||
Net Assets: | |||||||||||||||||||||||||||
Beginning of period | 22,093 | 27,331 | 1,807,664 | 1,792,217 | 68,777 | 91,636 | |||||||||||||||||||||
End of period | $ | 133,140 | $ | 22,093 | $ | 1,863,985 | $ | 1,807,664 | $ | 71,653 | $ | 68,777 |
(continues on next page)
See notes to financial statements.
138
Victory Portfolios | Statements of Changes in Net Assets |
(Amounts in Thousands) (continued)
Victory Trivalent International Fund-Core Equity | Victory Trivalent International Small-Cap Fund | Victory INCORE Total Return Bond Fund | |||||||||||||||||||||||||
Year Ended June 30, 2020 | Year Ended June 30, 2019 | Year Ended June 30, 2020 | Year Ended June 30, 2019 | Year Ended June 30, 2020 | Year Ended June 30, 2019 | ||||||||||||||||||||||
Capital Transactions: | |||||||||||||||||||||||||||
Class A Shares | |||||||||||||||||||||||||||
Proceeds from shares issued | $ | 337 | $ | 667 | $ | 35,046 | $ | 64,032 | $ | 1,275 | $ | 2,034 | |||||||||||||||
Distributions reinvested | 42 | 171 | 1,735 | 3,045 | 252 | 294 | |||||||||||||||||||||
Cost of shares redeemed | (892 | ) | (3,818 | ) | (62,948 | ) | (41,068 | ) | (2,846 | ) | (2,977 | ) | |||||||||||||||
Total Class A Shares | $ | (513 | ) | $ | (2,980 | ) | $ | (26,167 | ) | $ | 26,009 | $ | (1,319 | ) | $ | (649 | ) | ||||||||||
Class C Shares | |||||||||||||||||||||||||||
Proceeds from shares issued | $ | 10 | $ | 212 | $ | 664 | $ | 1,086 | $ | 340 | $ | 110 | |||||||||||||||
Distributions reinvested | — | (a) | 14 | 42 | 93 | 10 | 17 | ||||||||||||||||||||
Cost of shares redeemed | (118 | ) | (324 | ) | (1,180 | ) | (1,833 | ) | (230 | ) | (537 | ) | |||||||||||||||
Total Class C Shares | $ | (108 | ) | $ | (98 | ) | $ | (474 | ) | $ | (654 | ) | $ | 120 | $ | (410 | ) | ||||||||||
Class I Shares | |||||||||||||||||||||||||||
Proceeds from shares issued | $ | 912 | $ | 51 | $ | 350,308 | $ | 366,357 | $ | — | $ | — | |||||||||||||||
Distributions reinvested | 32 | 84 | 10,793 | 12,641 | — | — | |||||||||||||||||||||
Cost of shares redeemed | (469 | ) | (332 | ) | (266,728 | ) | (205,751 | ) | — | — | |||||||||||||||||
Total Class I Shares | $ | 475 | $ | (197 | ) | $ | 94,373 | $ | 173,247 | $ | — | $ | — | ||||||||||||||
Class R6 Shares | |||||||||||||||||||||||||||
Proceeds from shares issued | $ | 118,773 | $ | 552 | $ | 46,552 | $ | 17,109 | $ | 536 | $ | 602 | |||||||||||||||
Distributions reinvested | 902 | 215 | 989 | 1,115 | 710 | 829 | |||||||||||||||||||||
Cost of shares redeemed | (2,003 | ) | (806 | ) | (16,987 | ) | (11,123 | ) | (1,392 | ) | (2,574 | ) | |||||||||||||||
Total Class R6 Shares | $ | 117,672 | $ | (39 | ) | $ | 30,554 | $ | 7,101 | $ | (146 | ) | $ | (1,143 | ) | ||||||||||||
Class Y Shares | |||||||||||||||||||||||||||
Proceeds from shares issued | $ | 241 | $ | 3,441 | $ | 257,621 | $ | 314,622 | $ | 1,271 | $ | 1,395 | |||||||||||||||
Distributions reinvested | 87 | 435 | 11,950 | 17,845 | 617 | 1,108 | |||||||||||||||||||||
Cost of shares redeemed | (1,748 | ) | (4,303 | ) | (259,236 | ) | (342,580 | ) | (977 | ) | (24,828 | ) | |||||||||||||||
Total Class Y Shares | $ | (1,420 | ) | $ | (427 | ) | $ | 10,335 | $ | (10,113 | ) | $ | 911 | $ | (22,325 | ) | |||||||||||
Change in net assets resulting from capital transactions | $ | 116,106 | $ | (3,741 | ) | $ | 108,621 | $ | 195,590 | $ | (434 | ) | $ | (24,527 | ) |
(continues on next page)
See notes to financial statements.
139
Victory Portfolios | Statements of Changes in Net Assets |
(Amounts in Thousands) (continued)
Victory Trivalent International Fund-Core Equity | Victory Trivalent International Small-Cap Fund | Victory INCORE Total Return Bond Fund | |||||||||||||||||||||||||
Year Ended June 30, 2020 | Year Ended June 30, 2019 | Year Ended June 30, 2020 | Year Ended June 30, 2019 | Year Ended June 30, 2020 | Year Ended June 30, 2019 | ||||||||||||||||||||||
Share Transactions: | |||||||||||||||||||||||||||
Class A Shares | |||||||||||||||||||||||||||
Issued | 51 | 99 | 2,784 | 4,915 | 133 | 222 | |||||||||||||||||||||
Reinvested | 6 | 28 | 124 | 270 | 26 | 32 | |||||||||||||||||||||
Redeemed | (134 | ) | (534 | ) | (5,054 | ) | (3,114 | ) | (297 | ) | (326 | ) | |||||||||||||||
Total Class A Shares | (77 | ) | (407 | ) | (2,146 | ) | 2,071 | (138 | ) | (72 | ) | ||||||||||||||||
Class C Shares | |||||||||||||||||||||||||||
Issued | 1 | 33 | 54 | 86 | 35 | 12 | |||||||||||||||||||||
Reinvested | — | (a) | 2 | 3 | 8 | 1 | 2 | ||||||||||||||||||||
Redeemed | (18 | ) | (48 | ) | (97 | ) | (148 | ) | (23 | ) | (59 | ) | |||||||||||||||
Total Class C Shares | (17 | ) | (13 | ) | (40 | ) | (54 | ) | 13 | (45 | ) | ||||||||||||||||
Class I Shares | |||||||||||||||||||||||||||
Issued | 135 | 7 | 27,996 | 28,604 | — | — | |||||||||||||||||||||
Reinvested | 4 | 14 | 769 | 1,114 | — | — | |||||||||||||||||||||
Redeemed | (72 | ) | (46 | ) | (23,160 | ) | (16,348 | ) | — | — | |||||||||||||||||
Total Class I Shares | 67 | (25 | ) | 5,605 | 13,370 | — | — | ||||||||||||||||||||
Class R6 Shares | |||||||||||||||||||||||||||
Issued | 17,546 | 81 | 3,656 | 1,299 | 55 | 65 | |||||||||||||||||||||
Reinvested | 122 | 35 | 70 | 98 | 74 | 90 | |||||||||||||||||||||
Redeemed | (319 | ) | (115 | ) | (1,331 | ) | (835 | ) | (144 | ) | (280 | ) | |||||||||||||||
Total Class R6 Shares | 17,349 | 1 | 2,395 | 562 | (15 | ) | (125 | ) | |||||||||||||||||||
Class Y Shares | |||||||||||||||||||||||||||
Issued | 35 | 475 | 20,940 | 24,496 | 130 | 153 | |||||||||||||||||||||
Reinvested | 12 | 72 | 855 | 1,580 | 64 | 121 | |||||||||||||||||||||
Redeemed | (275 | ) | (649 | ) | (21,266 | ) | (27,208 | ) | (102 | ) | (2,703 | ) | |||||||||||||||
Total Class Y Shares | (228 | ) | (102 | ) | 529 | (1,132 | ) | 92 | (2,429 | ) | |||||||||||||||||
Change in Shares | 17,094 | (546 | ) | 6,343 | 14,817 | (48 | ) | (2,671 | ) |
(a) Rounds to less than 1 thousand.
See notes to financial statements.
140
This page is intentionally left blank.
141
Victory Portfolios | Financial Highlights |
For a Share Outstanding Throughout Each Period
Investment Activities | Distributions to Shareholders From | ||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains from Investments | Total Distributions | |||||||||||||||||||||||||
Victory Integrity Discovery Fund | |||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 32.28 | (0.05 | ) | (7.38 | ) | (7.43 | ) | — | (0.82 | ) | (0.82 | ) | ||||||||||||||||||
Year Ended 6/30/19 | $ | 42.75 | (0.11 | ) | (5.61 | ) | (5.72 | ) | — | (4.75 | ) | (4.75 | ) | ||||||||||||||||||
Year Ended 6/30/18 | $ | 41.01 | (0.16 | ) | 6.40 | 6.24 | — | (4.50 | ) | (4.50 | ) | ||||||||||||||||||||
Year Ended 6/30/17 | $ | 32.71 | (0.19 | ) | 10.10 | 9.91 | — | (1.61 | ) | (1.61 | ) | ||||||||||||||||||||
Year Ended 6/30/16 | $ | 38.13 | (0.09 | ) | (2.73 | ) | (2.82 | ) | — | (2.65 | ) | (2.65 | ) | ||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 22.36 | (0.22 | ) | (5.00 | ) | (5.22 | ) | — | (0.82 | ) | (0.82 | ) | ||||||||||||||||||
Year Ended 6/30/19 | $ | 31.69 | (0.28 | ) | (4.30 | ) | (4.58 | ) | — | (4.75 | ) | (4.75 | ) | ||||||||||||||||||
Year Ended 6/30/18 | $ | 31.69 | (0.34 | ) | 4.84 | 4.50 | — | (4.50 | ) | (4.50 | ) | ||||||||||||||||||||
Year Ended 6/30/17 | $ | 25.76 | (0.38 | ) | 7.92 | 7.54 | — | (1.61 | ) | (1.61 | ) | ||||||||||||||||||||
Year Ended 6/30/16 | $ | 30.85 | (0.28 | ) | (2.21 | ) | (2.49 | ) | — | (2.65 | ) | (2.65 | ) | ||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 30.36 | (0.18 | ) | (6.91 | ) | (7.09 | ) | — | (0.82 | ) | (0.82 | ) | ||||||||||||||||||
Year Ended 6/30/19 | $ | 40.76 | (0.28 | ) | (5.37 | ) | (5.65 | ) | — | (4.75 | ) | (4.75 | ) | ||||||||||||||||||
Year Ended 6/30/18 | $ | 39.49 | (0.28 | ) | 6.05 | 5.77 | — | (4.50 | ) | (4.50 | ) | ||||||||||||||||||||
Year Ended 6/30/17 | $ | 31.71 | (0.37 | ) | 9.76 | 9.39 | — | (1.61 | ) | (1.61 | ) | ||||||||||||||||||||
Year Ended 6/30/16 | $ | 37.21 | (0.24 | ) | (2.66 | ) | (2.90 | ) | — | (2.65 | ) | (2.65 | ) |
(a) Per share net investment income (loss) has been calculated using the average daily shares method
(b) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
(c) The Fund received monies related to a nonrecurring refund from the prior custodian. The corresponding impact to the total return was 0.16% for the year ended June 30, 2016. (See Note 8).
See notes to financial statements.
142
Victory Portfolios | Financial Highlights — continued |
For a Share Outstanding Throughout Each Period
Ratios to Average Net Assets | Supplemental Data | ||||||||||||||||||||||||||||||||||
Capital Contributions from Prior Custodian, Net (See Note 8) | Net Asset Value, End of Period | Total Return (Excludes Sales Charge) | Net Expenses | Net Investment Income (Loss) | Gross Expenses | Net Assets, End of Period (000's) | Portfolio Turnover(b) | ||||||||||||||||||||||||||||
Victory Integrity Discovery Fund | |||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | — | $ | 24.03 | (23.78 | )% | 1.59 | % | (0.18 | )% | 1.59 | % | $ | 30,614 | 40 | % | ||||||||||||||||||||
Year Ended 6/30/19 | — | $ | 32.28 | (12.02 | )% | 1.55 | % | (0.29 | )% | 1.55 | % | $ | 50,963 | 40 | % | ||||||||||||||||||||
Year Ended 6/30/18 | — | $ | 42.75 | 15.76 | % | 1.54 | % | (0.39 | )% | 1.54 | % | $ | 67,840 | 45 | % | ||||||||||||||||||||
Year Ended 6/30/17 | — | $ | 41.01 | 30.36 | % | 1.55 | % | (0.50 | )% | 1.55 | % | $ | 85,228 | 110 | % | ||||||||||||||||||||
Year Ended 6/30/16 | 0.05 | $ | 32.71 | (7.34 | )%(c) | 1.60 | % | (0.27 | )% | 1.60 | % | $ | 48,759 | 42 | % | ||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | — | $ | 16.32 | (24.42 | )% | 2.46 | % | (1.09 | )% | 2.52 | % | $ | 2,194 | 40 | % | ||||||||||||||||||||
Year Ended 6/30/19 | — | $ | 22.36 | (12.74 | )% | 2.34 | % | (1.07 | )% | 2.34 | % | $ | 6,633 | 40 | % | ||||||||||||||||||||
Year Ended 6/30/18 | — | $ | 31.69 | 14.88 | % | 2.32 | % | (1.10 | )% | 2.32 | % | $ | 9,871 | 45 | % | ||||||||||||||||||||
Year Ended 6/30/17 | — | $ | 31.69 | 29.33 | % | 2.36 | % | (1.28 | )% | 2.36 | % | $ | 15,796 | 110 | % | ||||||||||||||||||||
Year Ended 6/30/16 | 0.05 | $ | 25.76 | (8.04 | )%(c) | 2.38 | % | (1.05 | )% | 2.38 | % | $ | 14,096 | 42 | % | ||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | — | $ | 22.45 | (24.10 | )% | 2.08 | % | (0.65 | )% | 2.33 | % | $ | 1,990 | 40 | % | ||||||||||||||||||||
Year Ended 6/30/19 | — | $ | 30.36 | (12.49 | )% | 2.08 | % | (0.84 | )% | 2.41 | % | $ | 3,038 | 40 | % | ||||||||||||||||||||
Year Ended 6/30/18 | — | $ | 40.76 | 15.15 | % | 2.08 | % | (0.70 | )% | 2.27 | % | $ | 3,465 | 45 | % | ||||||||||||||||||||
Year Ended 6/30/17 | — | $ | 39.49 | 29.67 | % | 2.08 | % | (0.99 | )% | 2.56 | % | $ | 2,291 | 110 | % | ||||||||||||||||||||
Year Ended 6/30/16 | 0.05 | $ | 31.71 | (7.76 | )%(c) | 2.08 | % | (0.75 | )% | 2.39 | % | $ | 1,696 | 42 | % |
(continues on next page)
See notes to financial statements.
143
Victory Portfolios | Financial Highlights |
For a Share Outstanding Throughout Each Period
Investment Activities | Distributions to Shareholders From | ||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains from Investments | Total Distributions | |||||||||||||||||||||||||
Victory Integrity Discovery Fund | |||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 35.65 | — | (d) | (8.19 | ) | (8.19 | ) | — | (0.82 | ) | (0.82 | ) | ||||||||||||||||||
Year Ended 6/30/19 | $ | 46.47 | (0.03 | ) | (6.04 | ) | (6.07 | ) | — | (4.75 | ) | (4.75 | ) | ||||||||||||||||||
Year Ended 6/30/18 | $ | 44.11 | (0.05 | ) | 6.91 | 6.86 | — | (d) | (4.50 | ) | (4.50 | ) | |||||||||||||||||||
Year Ended 6/30/17 | $ | 35.02 | (0.13 | ) | 10.83 | 10.70 | — | (1.61 | ) | (1.61 | ) | ||||||||||||||||||||
Year Ended 6/30/16 | $ | 40.52 | (0.01 | ) | (2.89 | ) | (2.90 | ) | — | (2.65 | ) | (2.65 | ) |
(a) Per share net investment income (loss) has been calculated using the average daily shares method
(b) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
(c) The Fund received monies related to a nonrecurring refund from the prior custodian. The corresponding impact to the total return was 0.16% for the year ended June 30, 2016. (See Note 8).
(d) Amount is less than $0.005 per share.
(e) Amount is less than 0.005%.
See notes to financial statements.
144
Victory Portfolios | Financial Highlights — continued |
For a Share Outstanding Throughout Each Period
Ratios to Average Net Assets | Supplemental Data | ||||||||||||||||||||||||||||||||||
Capital Contributions from Prior Custodian, Net (See Note 8) | Net Asset Value, End of Period | Total Return (Excludes Sales Charge) | Net Expenses | Net Investment Income (Loss) | Gross Expenses | Net Assets, End of Period (000's) | Portfolio Turnover(b) | ||||||||||||||||||||||||||||
Victory Integrity Discovery Fund | |||||||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | — | $ | 26.64 | (23.64 | )% | 1.38 | % | — | %(e) | 1.38 | % | $ | 27,519 | 40 | % | ||||||||||||||||||||
Year Ended 6/30/19 | — | $ | 35.65 | (11.81 | )% | 1.30 | % | (0.06 | )% | 1.30 | % | $ | 71,708 | 40 | % | ||||||||||||||||||||
Year Ended 6/30/18 | — | $ | 46.47 | 16.08 | % | 1.28 | % | (0.12 | )% | 1.28 | % | $ | 78,079 | 45 | % | ||||||||||||||||||||
Year Ended 6/30/17 | — | $ | 44.11 | 30.62 | % | 1.38 | % | (0.30 | )% | 1.38 | % | $ | 49,468 | 110 | % | ||||||||||||||||||||
Year Ended 6/30/16 | 0.05 | $ | 35.02 | (7.10 | )%(c) | 1.35 | % | (0.03 | )% | 1.35 | % | $ | 27,622 | 42 | % |
See notes to financial statements.
145
Victory Portfolios | Financial Highlights |
For a Share Outstanding Throughout Each Period
Investment Activities | Distributions to Shareholders From | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains from Investments | ||||||||||||||||||||||
Victory Integrity Mid-Cap Value Fund | |||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 17.86 | 0.24 | (2.70 | ) | (2.46 | ) | (0.10 | ) | — | |||||||||||||||||
Year Ended 6/30/19 | $ | 19.17 | 0.19 | (0.32 | )(e) | (0.13 | ) | (0.19 | ) | (0.99 | ) | ||||||||||||||||
Year Ended 6/30/18 | $ | 17.91 | 0.19 | 1.84 | 2.03 | (0.15 | ) | (0.62 | ) | ||||||||||||||||||
Year Ended 6/30/17 | $ | 15.43 | 0.03 | 2.45 | 2.48 | — | — | ||||||||||||||||||||
Year Ended 6/30/16 | $ | 15.54 | 0.07 | (0.01 | )(e) | 0.06 | (0.04 | ) | (0.13 | ) | |||||||||||||||||
Class C | |||||||||||||||||||||||||||
11/4/19(f) through 6/30/20 | $ | 18.75 | 0.11 | (3.39 | ) | (3.28 | ) | (0.10 | ) | — | |||||||||||||||||
Class R6 | |||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 18.02 | 0.33 | (2.74 | ) | (2.41 | ) | (0.14 | ) | — | |||||||||||||||||
Year Ended 6/30/19 | $ | 19.30 | 0.26 | (0.32 | )(e) | (0.06 | ) | (0.23 | ) | (0.99 | ) | ||||||||||||||||
Year Ended 6/30/18 | $ | 18.02 | 0.22 | 1.87 | 2.09 | (0.19 | ) | (0.62 | ) | ||||||||||||||||||
Year Ended 6/30/17 | $ | 15.53 | 0.12 | 2.43 | 2.55 | (0.06 | ) | — | |||||||||||||||||||
12/15/15(f) through 6/30/16 | $ | 14.38 | 0.06 | 1.30 | (e) | 1.36 | (0.08 | ) | (0.13 | ) | |||||||||||||||||
Class Y | |||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 18.02 | 0.25 | (2.68 | ) | (2.43 | ) | (0.15 | ) | — | |||||||||||||||||
Year Ended 6/30/19 | $ | 19.34 | 0.28 | (0.37 | )(e) | (0.09 | ) | (0.24 | ) | (0.99 | ) | ||||||||||||||||
Year Ended 6/30/18 | $ | 18.06 | 0.24 | 1.85 | 2.09 | (0.19 | ) | (0.62 | ) | ||||||||||||||||||
Year Ended 6/30/17 | $ | 15.58 | 0.13 | 2.43 | 2.56 | (0.08 | ) | — | |||||||||||||||||||
Year Ended 6/30/16 | $ | 15.65 | 0.13 | (0.02 | )(e) | 0.11 | (0.05 | ) | (0.13 | ) |
(a) Per share net investment income (loss) has been calculated using the average daily shares method.
(b) Not annualized for periods less than one year.
(c) Annualized for periods less than one year.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
(e) The amount shown for a share outstanding throughout the period does not accord with the change in aggregate gains and losses in the portfolio of securities during the period because of the timing of sales and purchases of fund shares in relation to fluctuating market values during the period.
(f) Commencement of operations.
See notes to financial statements.
146
Victory Portfolios | Financial Highlights — continued |
For a Share Outstanding Throughout Each Period
Ratios to Average Net Assets | Supplemental Data | ||||||||||||||||||||||||||||||||||
Total Distributions | Net Asset Value, End of Period | Total Return (Excludes Sales Charge)(b) | Net Expenses(c) | Net Investment Income (Loss)(c) | Gross Expenses(c) | Net Assets, End of Period (000's) | Portfolio Turnover(b)(d) | ||||||||||||||||||||||||||||
Victory Integrity Mid-Cap Value Fund | |||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | (0.10 | ) | $ | 15.30 | (13.90 | )% | 1.00 | % | 1.40 | % | 1.43 | % | $ | 8,574 | 82 | % | |||||||||||||||||||
Year Ended 6/30/19 | (1.18 | ) | $ | 17.86 | 0.36 | % | 1.00 | % | 1.05 | % | 1.51 | % | $ | 7,567 | 73 | % | |||||||||||||||||||
Year Ended 6/30/18 | (0.77 | ) | $ | 19.17 | 11.32 | % | 1.09 | % | 1.01 | % | 1.67 | % | $ | 4,255 | 73 | % | |||||||||||||||||||
Year Ended 6/30/17 | — | $ | 17.91 | 16.07 | % | 1.35 | % | 0.19 | % | 1.94 | % | $ | 2,864 | 68 | % | ||||||||||||||||||||
Year Ended 6/30/16 | (0.17 | ) | $ | 15.43 | 0.41 | % | 1.50 | % | 0.44 | % | 1.63 | % | $ | 11,086 | 71 | % | |||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||
11/4/19(f) through 6/30/20 | (0.10 | ) | $ | 15.37 | (17.55 | )% | 1.75 | % | 1.02 | % | 43.95 | % | $ | 44 | 82 | % | |||||||||||||||||||
Class R6 | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | (0.14 | ) | $ | 15.47 | (13.53 | )% | 0.60 | % | 1.93 | % | 0.88 | % | $ | 184,503 | 82 | % | |||||||||||||||||||
Year Ended 6/30/19 | (1.22 | ) | $ | 18.02 | 0.72 | % | 0.60 | % | 1.43 | % | 0.94 | % | $ | 56,232 | 73 | % | |||||||||||||||||||
Year Ended 6/30/18 | (0.81 | ) | $ | 19.30 | 11.68 | % | 0.77 | % | 1.14 | % | 1.17 | % | $ | 6,750 | 73 | % | |||||||||||||||||||
Year Ended 6/30/17 | (0.06 | ) | $ | 18.02 | 16.42 | % | 0.89 | % | 0.71 | % | 3.01 | % | $ | 1,375 | 68 | % | |||||||||||||||||||
12/15/15(f) through 6/30/16 | (0.21 | ) | $ | 15.53 | 9.50 | % | 1.04 | % | 0.75 | % | 3.10 | % | $ | 726 | 71 | % | |||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | (0.15 | ) | $ | 15.44 | (13.67 | )% | 0.75 | % | 1.46 | % | 1.21 | % | $ | 9,352 | 82 | % | |||||||||||||||||||
Year Ended 6/30/19 | (1.23 | ) | $ | 18.02 | 0.58 | % | 0.75 | % | 1.52 | % | 1.17 | % | $ | 21,486 | 73 | % | |||||||||||||||||||
Year Ended 6/30/18 | (0.81 | ) | $ | 19.34 | 11.58 | % | 0.84 | % | 1.25 | % | 1.13 | % | $ | 59,866 | 73 | % | |||||||||||||||||||
Year Ended 6/30/17 | (0.08 | ) | $ | 18.06 | 16.43 | % | 0.89 | % | 0.74 | % | 1.18 | % | $ | 47,989 | 68 | % | |||||||||||||||||||
Year Ended 6/30/16 | (0.18 | ) | $ | 15.58 | 0.73 | % | 1.15 | % | 0.85 | % | 1.15 | % | $ | 8,442 | 71 | % |
See notes to financial statements.
147
Victory Portfolios | Financial Highlights |
For a Share Outstanding Throughout Each Period
Investment Activities | Distributions to Shareholders From | ||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains from Investments | Total Distributions | |||||||||||||||||||||||||
Victory Integrity Small-Cap Value Fund | |||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 32.37 | 0.03 | (7.86 | ) | (7.83 | ) | — | (0.14 | ) | (0.14 | ) | |||||||||||||||||||
Year Ended 6/30/19 | $ | 40.06 | 0.09 | (3.59 | ) | (3.50 | ) | — | (4.19 | ) | (4.19 | ) | |||||||||||||||||||
Year Ended 6/30/18 | $ | 37.70 | (0.04 | ) | 4.76 | 4.72 | — | (2.36 | ) | (2.36 | ) | ||||||||||||||||||||
Year Ended 6/30/17 | $ | 30.72 | (0.08 | ) | 7.06 | 6.98 | — | — | — | ||||||||||||||||||||||
Year Ended 6/30/16 | $ | 33.48 | 0.01 | (2.31 | ) | (2.30 | ) | — | (0.46 | ) | (0.46 | ) | |||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 27.85 | (0.17 | ) | (6.73 | ) | (6.90 | ) | — | (0.14 | ) | (0.14 | ) | ||||||||||||||||||
Year Ended 6/30/19 | $ | 35.40 | (0.13 | ) | (3.23 | ) | (3.36 | ) | — | (4.19 | ) | (4.19 | ) | ||||||||||||||||||
Year Ended 6/30/18 | $ | 33.76 | (0.24 | ) | 4.24 | 4.00 | — | (2.36 | ) | (2.36 | ) | ||||||||||||||||||||
Year Ended 6/30/17 | $ | 27.69 | (0.28 | ) | 6.35 | 6.07 | — | — | — | ||||||||||||||||||||||
Year Ended 6/30/16 | $ | 30.45 | (0.19 | ) | (2.11 | ) | (2.30 | ) | — | (0.46 | ) | (0.46 | ) | ||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 31.32 | (0.05 | ) | (7.60 | ) | (7.65 | ) | — | (0.14 | ) | (0.14 | ) | ||||||||||||||||||
Year Ended 6/30/19 | $ | 39.02 | (0.01 | ) | (3.50 | ) | (3.51 | ) | — | (4.19 | ) | (4.19 | ) | ||||||||||||||||||
Year Ended 6/30/18 | $ | 36.86 | (0.13 | ) | 4.65 | 4.52 | — | (2.36 | ) | (2.36 | ) | ||||||||||||||||||||
Year Ended 6/30/17 | $ | 30.11 | (0.16 | ) | 6.91 | 6.75 | — | — | — | ||||||||||||||||||||||
Year Ended 6/30/16 | $ | 33.00 | (0.06 | ) | (2.37 | ) | (2.43 | ) | — | (c) | (0.46 | ) | (0.46 | ) |
(a) Per share net investment income (loss) has been calculated using the average daily shares method.
(b) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
(c) Amount is less than $0.005 per share.
See notes to financial statements.
148
Victory Portfolios | Financial Highlights — continued |
For a Share Outstanding Throughout Each Period
Ratios to Average Net Assets | Supplemental Data | ||||||||||||||||||||||||||||||||||
Capital Contributions from Prior Custodian, Net (See Note 8) | Net Asset Value, End of Period | Total Return (Excludes Sales Charge) | Net Expenses | Net Investment Income (Loss) | Gross Expenses | Net Assets, End of Period (000's) | Portfolio Turnover(b) | ||||||||||||||||||||||||||||
Victory Integrity Small-Cap Value Fund | |||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | — | $ | 24.40 | (24.33 | )% | 1.48 | % | 0.10 | % | 1.48 | % | $ | 79,429 | 80 | % | ||||||||||||||||||||
Year Ended 6/30/19 | — | $ | 32.37 | (7.16 | )% | 1.50 | % | 0.25 | % | 1.58 | % | $ | 140,439 | 72 | % | ||||||||||||||||||||
Year Ended 6/30/18 | — | $ | 40.06 | 12.55 | % | 1.50 | % | (0.10 | )% | 1.54 | % | $ | 221,775 | 70 | % | ||||||||||||||||||||
Year Ended 6/30/17 | — | $ | 37.70 | 22.72 | % | 1.50 | % | (0.22 | )% | 1.52 | % | $ | 219,113 | 58 | % | ||||||||||||||||||||
Year Ended 6/30/16 | — | (c) | $ | 30.72 | (6.87 | )% | 1.50 | % | 0.04 | % | 1.57 | % | $ | 216,492 | 47 | % | |||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | — | $ | 20.81 | (24.91 | )% | 2.25 | % | (0.69 | )% | 2.25 | % | $ | 5,796 | 80 | % | ||||||||||||||||||||
Year Ended 6/30/19 | — | $ | 27.85 | (7.79 | )% | 2.16 | % | (0.42 | )% | 2.16 | % | $ | 11,083 | 72 | % | ||||||||||||||||||||
Year Ended 6/30/18 | — | $ | 35.40 | 11.86 | % | 2.13 | % | (0.70 | )% | 2.13 | % | $ | 16,746 | 70 | % | ||||||||||||||||||||
Year Ended 6/30/17 | — | $ | 33.76 | 21.92 | % | 2.16 | % | (0.89 | )% | 2.16 | % | $ | 27,015 | 58 | % | ||||||||||||||||||||
Year Ended 6/30/16 | — | (c) | $ | 27.69 | (7.56 | )% | 2.22 | % | (0.68 | )% | 2.22 | % | $ | 27,987 | 47 | % | |||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | — | $ | 23.53 | (24.54 | )% | 1.75 | % | (0.19 | )% | 1.86 | % | $ | 5,303 | 80 | % | ||||||||||||||||||||
Year Ended 6/30/19 | — | $ | 31.32 | (7.39 | )% | 1.75 | % | (0.03 | )% | 1.99 | % | $ | 10,451 | 72 | % | ||||||||||||||||||||
Year Ended 6/30/18 | — | $ | 39.02 | 12.29 | % | 1.75 | % | (0.35 | )% | 1.89 | % | $ | 14,952 | 70 | % | ||||||||||||||||||||
Year Ended 6/30/17 | — | $ | 36.86 | 22.42 | % | 1.75 | % | (0.46 | )% | 2.06 | % | $ | 15,317 | 58 | % | ||||||||||||||||||||
Year Ended 6/30/16 | — | (c) | $ | 30.11 | (7.36 | )% | 1.75 | % | (0.19 | )% | 1.96 | % | $ | 15,042 | 47 | % |
(continues on next page)
See notes to financial statements.
149
Victory Portfolios | Financial Highlights |
For a Share Outstanding Throughout Each Period
Investment Activities | Distributions to Shareholders From | ||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains from Investments | Total Distributions | |||||||||||||||||||||||||
Victory Integrity Small-Cap Value Fund | |||||||||||||||||||||||||||||||
Class R6 | |||||||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 33.70 | 0.19 | (8.18 | ) | (7.99 | ) | (0.14 | ) | (0.14 | ) | (0.28 | ) | ||||||||||||||||||
Year Ended 6/30/19 | $ | 41.51 | 0.24 | (3.67 | ) | (3.43 | ) | (0.19 | ) | (4.19 | ) | (4.38 | ) | ||||||||||||||||||
Year Ended 6/30/18 | $ | 38.86 | 0.18 | 4.92 | 5.10 | (0.09 | ) | (2.36 | ) | (2.45 | ) | ||||||||||||||||||||
Year Ended 6/30/17 | $ | 31.60 | 0.12 | 7.28 | 7.40 | (0.14 | ) | — | (0.14 | ) | |||||||||||||||||||||
Year Ended 6/30/16 | $ | 34.31 | 0.18 | (2.38 | ) | (2.20 | ) | (0.05 | ) | (0.46 | ) | (0.51 | ) | ||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 33.49 | 0.14 | (8.13 | ) | (7.99 | ) | (0.09 | ) | (0.14 | ) | (0.23 | ) | ||||||||||||||||||
Year Ended 6/30/19 | $ | 41.25 | 0.21 | (3.67 | ) | (3.46 | ) | (0.11 | ) | (4.19 | ) | (4.30 | ) | ||||||||||||||||||
Year Ended 6/30/18 | $ | 38.63 | 0.11 | 4.89 | 5.00 | (0.02 | ) | (2.36 | ) | (2.38 | ) | ||||||||||||||||||||
Year Ended 6/30/17 | $ | 31.45 | 0.05 | 7.23 | 7.28 | (0.10 | ) | — | (0.10 | ) | |||||||||||||||||||||
Year Ended 6/30/16 | $ | 34.15 | 0.13 | (2.37 | ) | (2.24 | ) | — | (c) | (0.46 | ) | (0.46 | ) |
(a) Per share net investment income (loss) has been calculated using the average daily shares method.
(b) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
(c) Amount is less than $0.005 per share.
See notes to financial statements.
150
Victory Portfolios | Financial Highlights — continued |
For a Share Outstanding Throughout Each Period
Ratios to Average Net Assets | Supplemental Data | ||||||||||||||||||||||||||||||||||
Capital Contributions from Prior Custodian, Net (See Note 8) | Net Asset Value, End of Period | Total Return (Excludes Sales Charge) | Net Expenses | Net Investment Income (Loss) | Gross Expenses | Net Assets, End of Period (000's) | Portfolio Turnover(b) | ||||||||||||||||||||||||||||
Victory Integrity Small-Cap Value Fund | |||||||||||||||||||||||||||||||||||
Class R6 | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | — | $ | 25.43 | (23.95 | )% | 0.97 | % | 0.64 | % | 0.97 | % | $ | 984,938 | 80 | % | ||||||||||||||||||||
Year Ended 6/30/19 | — | $ | 33.70 | (6.67 | )% | 0.96 | % | 0.65 | % | 0.96 | % | $ | 1,179,915 | 72 | % | ||||||||||||||||||||
Year Ended 6/30/18 | — | $ | 41.51 | 13.17 | % | 0.95 | % | 0.45 | % | 0.95 | % | $ | 938,831 | 70 | % | ||||||||||||||||||||
Year Ended 6/30/17 | — | $ | 38.86 | 23.40 | % | 0.96 | % | 0.33 | % | 0.96 | % | $ | 871,150 | 58 | % | ||||||||||||||||||||
Year Ended 6/30/16 | — | (c) | $ | 31.60 | (6.41 | )% | 1.00 | % | 0.57 | % | 1.00 | % | $ | 608,927 | 47 | % | |||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | — | $ | 25.27 | (24.04 | )% | 1.11 | % | 0.47 | % | 1.11 | % | $ | 491,836 | 80 | % | ||||||||||||||||||||
Year Ended 6/30/19 | — | $ | 33.49 | (6.83 | )% | 1.12 | % | 0.58 | % | 1.12 | % | $ | 981,688 | 72 | % | ||||||||||||||||||||
Year Ended 6/30/18 | — | $ | 41.25 | 13.01 | % | 1.12 | % | 0.28 | % | 1.12 | % | $ | 1,467,901 | 70 | % | ||||||||||||||||||||
Year Ended 6/30/17 | — | $ | 38.63 | 23.14 | % | 1.15 | % | 0.13 | % | 1.15 | % | $ | 1,329,435 | 58 | % | ||||||||||||||||||||
Year Ended 6/30/16 | — | (c) | $ | 31.45 | (6.54 | )% | 1.15 | % | 0.40 | % | 1.15 | % | $ | 981,741 | 47 | % |
See notes to financial statements.
151
Victory Portfolios | Financial Highlights |
For a Share Outstanding Throughout Each Period
Investment Activities | Distributions to Shareholders From | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains from Investments | ||||||||||||||||||||||
Victory Integrity Small/Mid-Cap Value Fund | |||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 16.70 | 0.10 | (3.24 | ) | (3.14 | ) | (0.10 | ) | — | |||||||||||||||||
Year Ended 6/30/19 | $ | 17.75 | 0.12 | (0.53 | ) | (0.41 | ) | (0.12 | ) | (0.52 | ) | ||||||||||||||||
Year Ended 6/30/18 | $ | 16.04 | 0.07 | 1.89 | 1.96 | (0.05 | ) | (0.20 | ) | ||||||||||||||||||
Year Ended 6/30/17 | $ | 13.26 | 0.02 | 2.76 | 2.78 | — | — | ||||||||||||||||||||
Year Ended 6/30/16 | $ | 14.08 | 0.02 | (0.81 | ) | (0.79 | ) | (0.03 | ) | — | |||||||||||||||||
Class R6 | |||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 16.91 | 0.15 | (3.28 | ) | (3.13 | ) | (0.14 | ) | — | |||||||||||||||||
Year Ended 6/30/19 | $ | 17.96 | 0.14 | (0.51 | ) | (0.37 | ) | (0.16 | ) | (0.52 | ) | ||||||||||||||||
Year Ended 6/30/18 | $ | 16.20 | 0.05 | 1.99 | 2.04 | (0.08 | ) | (0.20 | ) | ||||||||||||||||||
Year Ended 6/30/17 | $ | 13.35 | 0.03 | 2.82 | 2.85 | — | — | ||||||||||||||||||||
Year Ended 6/30/16 | $ | 14.17 | 0.05 | (0.81 | ) | (0.76 | ) | (0.06 | ) | — | |||||||||||||||||
Class Y | |||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 16.86 | 0.14 | (3.27 | ) | (3.13 | ) | (0.13 | ) | — | |||||||||||||||||
Year Ended 6/30/19 | $ | 17.92 | 0.22 | (0.60 | ) | (0.38 | ) | (0.16 | ) | (0.52 | ) | ||||||||||||||||
Year Ended 6/30/18 | $ | 16.17 | 0.12 | 1.91 | 2.03 | (0.08 | ) | (0.20 | ) | ||||||||||||||||||
Year Ended 6/30/17 | $ | 13.35 | 0.06 | 2.78 | 2.84 | (0.02 | ) | — | |||||||||||||||||||
Year Ended 6/30/16 | $ | 14.16 | 0.05 | (0.81 | ) | (0.76 | ) | (0.05 | ) | — |
(a) Per share net investment income (loss) has been calculated using the average daily shares method.
(b) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
See notes to financial statements.
152
Victory Portfolios | Financial Highlights — continued |
For a Share Outstanding Throughout Each Period
Ratios to Average Net Assets | Supplemental Data | ||||||||||||||||||||||||||||||||||
Total Distributions | Net Asset Value, End of Period | Total Return (Excludes Sales Charge) | Net Expenses | Net Investment Income (Loss) | Gross Expenses | Net Assets, End of Period (000's) | Portfolio Turnover(b) | ||||||||||||||||||||||||||||
Victory Integrity Small/Mid-Cap Value Fund | |||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | (0.10 | ) | $ | 13.46 | (18.97 | )% | 1.13 | % | 0.67 | % | 1.65 | % | $ | 3,241 | 72 | % | |||||||||||||||||||
Year Ended 6/30/19 | (0.64 | ) | $ | 16.70 | (1.66 | )% | 1.13 | % | 0.70 | % | 1.71 | % | $ | 3,626 | 67 | % | |||||||||||||||||||
Year Ended 6/30/18 | (0.25 | ) | $ | 17.75 | 12.16 | % | 1.13 | % | 0.42 | % | 1.74 | % | $ | 2,996 | 77 | % | |||||||||||||||||||
Year Ended 6/30/17 | — | $ | 16.04 | 20.97 | % | 1.21 | % | 0.13 | % | 2.40 | % | $ | 2,304 | 65 | % | ||||||||||||||||||||
Year Ended 6/30/16 | (0.03 | ) | $ | 13.26 | (5.59 | )% | 1.50 | % | 0.13 | % | 2.15 | % | $ | 716 | 60 | % | |||||||||||||||||||
Class R6 | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | (0.14 | ) | $ | 13.64 | (18.70 | )% | 0.83 | % | 0.97 | % | 0.97 | % | $ | 80,284 | 72 | % | |||||||||||||||||||
Year Ended 6/30/19 | (0.68 | ) | $ | 16.91 | (1.39 | )% | 0.83 | % | 0.86 | % | 0.96 | % | $ | 95,286 | 67 | % | |||||||||||||||||||
Year Ended 6/30/18 | (0.28 | ) | $ | 17.96 | 12.54 | % | 0.83 | % | 0.28 | % | 1.26 | % | $ | 24,926 | 77 | % | |||||||||||||||||||
Year Ended 6/30/17 | — | $ | 16.20 | 21.35 | % | 1.09 | % | 0.20 | % | 1.96 | % | $ | 18 | 65 | % | ||||||||||||||||||||
Year Ended 6/30/16 | (0.06 | ) | $ | 13.35 | (5.33 | )% | 1.21 | % | 0.40 | % | 1.58 | % | $ | 3,381 | 60 | % | |||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | (0.13 | ) | $ | 13.60 | (18.73 | )% | 0.88 | % | 0.92 | % | 1.01 | % | $ | 32,572 | 72 | % | |||||||||||||||||||
Year Ended 6/30/19 | (0.68 | ) | $ | 16.86 | (1.45 | )% | 0.88 | % | 1.30 | % | 1.03 | % | $ | 35,927 | 67 | % | |||||||||||||||||||
Year Ended 6/30/18 | (0.28 | ) | $ | 17.92 | 12.51 | % | 0.88 | % | 0.67 | % | 1.13 | % | $ | 92,019 | 77 | % | |||||||||||||||||||
Year Ended 6/30/17 | (0.02 | ) | $ | 16.17 | 21.25 | % | 0.96 | % | 0.38 | % | 1.21 | % | $ | 53,509 | 65 | % | |||||||||||||||||||
Year Ended 6/30/16 | (0.05 | ) | $ | 13.35 | (5.34 | )% | 1.25 | % | 0.37 | % | 1.26 | % | $ | 18,918 | 60 | % |
See notes to financial statements.
153
Victory Portfolios | Financial Highlights |
For a Share Outstanding Throughout Each Period
Investment Activities | Distributions to Shareholders From | ||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains from Investments | Total Distributions | |||||||||||||||||||||||||
Victory Munder Multi-Cap Fund | |||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 38.75 | 0.03 | 0.65 | 0.68 | (0.10 | ) | (1.05 | ) | (1.15 | ) | ||||||||||||||||||||
Year Ended 6/30/19 | $ | 44.99 | 0.10 | 0.08 | 0.18 | — | (6.42 | ) | (6.42 | ) | |||||||||||||||||||||
Year Ended 6/30/18 | $ | 41.77 | (0.03 | ) | 5.71 | 5.68 | — | (c) | (2.46 | ) | (2.46 | ) | |||||||||||||||||||
Year Ended 6/30/17 | $ | 35.58 | 0.02 | 6.17 | 6.19 | — | — | — | |||||||||||||||||||||||
Year Ended 6/30/16 | $ | 44.91 | 0.01 | (1.58 | ) | (1.57 | ) | — | (7.80 | ) | (7.80 | ) | |||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 30.10 | (0.22 | ) | 0.52 | 0.30 | — | (1.05 | ) | (1.05 | ) | ||||||||||||||||||||
Year Ended 6/30/19 | $ | 36.81 | (0.16 | ) | (0.13 | )(f) | (0.29 | ) | — | (6.42 | ) | (6.42 | ) | ||||||||||||||||||
Year Ended 6/30/18 | $ | 34.82 | (0.34 | ) | 4.79 | 4.45 | — | (2.46 | ) | (2.46 | ) | ||||||||||||||||||||
Year Ended 6/30/17 | $ | 29.90 | (0.26 | ) | 5.18 | 4.92 | — | — | — | ||||||||||||||||||||||
Year Ended 6/30/16 | $ | 39.29 | (0.27 | ) | (1.36 | ) | (1.63 | ) | — | (7.80 | ) | (7.80 | ) | ||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 42.42 | 0.19 | 0.72 | 0.91 | (0.23 | ) | (1.05 | ) | (1.28 | ) | ||||||||||||||||||||
Year Ended 6/30/19 | $ | 48.41 | 0.27 | 0.16 | 0.43 | — | (6.42 | ) | (6.42 | ) | |||||||||||||||||||||
Year Ended 6/30/18 | $ | 44.62 | 0.14 | 6.11 | 6.25 | — | (2.46 | ) | (2.46 | ) | |||||||||||||||||||||
Year Ended 6/30/17 | $ | 37.86 | 0.17 | 6.59 | 6.76 | — | — | — | |||||||||||||||||||||||
Year Ended 6/30/16 | $ | 47.10 | 0.20 | (1.68 | ) | (1.48 | ) | — | (7.80 | ) | (7.80 | ) |
(a) Per share net investment income (loss) has been calculated using the average daily shares method.
(b) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
(c) Amount is less than $0.005 per share.
(d) During the year ended June 30, 2018, the Fund received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was an increase of 0.22%.
(e) The Fund received monies related to a nonrecurring refund from the prior custodian. The corresponding impact to the total return was 0.10% for the year ended June 30, 2016. (See Note 8).
(f) The amount shown for a share outstanding throughout the period does not accord with the change in aggregate gains and losses in the portfolio of securities during the period because of timing of sales and purchases of fund shares in relation to fluctuating market values during the period.
See notes to financial statements.
154
Victory Portfolios | Financial Highlights — continued |
For a Share Outstanding Throughout Each Period
Ratios to Average Net Assets | Supplemental Data | ||||||||||||||||||||||||||||||||||
Capital Contribution from Prior Custodian, Net (See Note 8) | Net Asset Value, End of Period | Total Return (Excludes Sales Charge) | Net Expenses | Net Investment Income (Loss) | Gross Expenses | Net Assets, End of Period (000's) | Portfolio Turnover(b) | ||||||||||||||||||||||||||||
Victory Munder Multi-Cap Fund | |||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | — | $ | 38.28 | 1.53 | % | 1.35 | % | 0.09 | % | 1.35 | % | $ | 311,642 | 100 | % | ||||||||||||||||||||
Year Ended 6/30/19 | — | $ | 38.75 | 2.86 | % | 1.36 | % | 0.25 | % | 1.36 | % | $ | 346,180 | 107 | % | ||||||||||||||||||||
Year Ended 6/30/18 | — | $ | 44.99 | 13.37 | %(d) | 1.36 | % | (0.07 | )% | 1.36 | % | $ | 374,259 | 123 | % | ||||||||||||||||||||
Year Ended 6/30/17 | — | $ | 41.77 | 17.40 | % | 1.38 | % | 0.04 | % | 1.38 | % | $ | 341,279 | 109 | % | ||||||||||||||||||||
Year Ended 6/30/16 | 0.04 | $ | 35.58 | (4.01 | )%(e) | 1.46 | % | 0.03 | % | 1.46 | % | $ | 318,712 | 117 | % | ||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | — | $ | 29.35 | 0.69 | % | 2.18 | % | (0.73 | )% | 2.20 | % | $ | 5,769 | 100 | % | ||||||||||||||||||||
Year Ended 6/30/19 | — | $ | 30.10 | 2.21 | % | 2.07 | % | (0.48 | )% | 2.07 | % | $ | 10,056 | 107 | % | ||||||||||||||||||||
Year Ended 6/30/18 | — | $ | 36.81 | 12.48 | %(d) | 2.16 | % | (0.91 | )% | 2.16 | % | $ | 18,383 | 123 | % | ||||||||||||||||||||
Year Ended 6/30/17 | — | $ | 34.82 | 16.45 | % | 2.21 | % | (0.80 | )% | 2.21 | % | $ | 57,690 | 109 | % | ||||||||||||||||||||
Year Ended 6/30/16 | 0.04 | $ | 29.90 | (4.82 | )%(e) | 2.28 | % | (0.79 | )% | 2.28 | % | $ | 68,112 | 117 | % | ||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | — | $ | 42.05 | 1.92 | % | 0.99 | % | 0.46 | % | 0.99 | % | $ | 30,258 | 100 | % | ||||||||||||||||||||
Year Ended 6/30/19 | — | $ | 42.42 | 3.21 | % | 1.00 | % | 0.61 | % | 1.00 | % | $ | 30,776 | 107 | % | ||||||||||||||||||||
Year Ended 6/30/18 | — | $ | 48.41 | 13.81 | %(d) | 1.00 | % | 0.29 | % | 1.00 | % | $ | 33,503 | 123 | % | ||||||||||||||||||||
Year Ended 6/30/17 | — | $ | 44.62 | 17.86 | % | 1.01 | % | 0.42 | % | 1.01 | % | $ | 24,032 | 109 | % | ||||||||||||||||||||
Year Ended 6/30/16 | 0.04 | $ | 37.86 | (3.61 | )%(e) | 1.01 | % | 0.47 | % | 1.01 | % | $ | 20,477 | 117 | % |
See notes to financial statements.
155
Victory Portfolios | Financial Highlights |
For a Share Outstanding Throughout Each Period
Investment Activities | Distributions to Shareholders From | ||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains from Investments | Total Distributions | |||||||||||||||||||||||||
Victory S&P 500 Index Fund | |||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 21.07 | 0.29 | 1.20 | 1.49 | (0.28 | ) | (2.48 | ) | (2.76 | ) | ||||||||||||||||||||
Year Ended 6/30/19 | $ | 21.52 | 0.31 | 1.43 | 1.74 | (0.33 | ) | (1.86 | ) | (2.19 | ) | ||||||||||||||||||||
Year Ended 6/30/18 | $ | 22.20 | 0.31 | 2.65 | 2.96 | (0.31 | ) | (3.33 | ) | (3.64 | ) | ||||||||||||||||||||
Year Ended 6/30/17 | $ | 20.54 | 0.31 | 3.08 | 3.39 | (0.34 | ) | (1.39 | ) | (1.73 | ) | ||||||||||||||||||||
Year Ended 6/30/16 | $ | 22.24 | 0.34 | 0.36 | 0.70 | (0.35 | ) | (2.07 | ) | (2.42 | ) | ||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 21.01 | 0.21 | 1.21 | 1.42 | (0.21 | ) | (2.48 | ) | (2.69 | ) | ||||||||||||||||||||
Year Ended 6/30/19 | $ | 21.47 | 0.22 | 1.43 | 1.65 | (0.25 | ) | (1.86 | ) | (2.11 | ) | ||||||||||||||||||||
Year Ended 6/30/18 | $ | 22.15 | 0.21 | 2.66 | 2.87 | (0.22 | ) | (3.33 | ) | (3.55 | ) | ||||||||||||||||||||
Year Ended 6/30/17 | $ | 20.51 | 0.22 | 3.06 | 3.28 | (0.25 | ) | (1.39 | ) | (1.64 | ) | ||||||||||||||||||||
Year Ended 6/30/16 | $ | 22.23 | 0.25 | 0.35 | 0.60 | (0.27 | ) | (2.07 | ) | (2.34 | ) | ||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 21.22 | 0.32 | 1.21 | 1.53 | (0.31 | ) | (2.48 | ) | (2.79 | ) | ||||||||||||||||||||
Year Ended 6/30/19 | $ | 21.66 | 0.33 | 1.45 | 1.78 | (0.36 | ) | (1.86 | ) | (2.22 | ) | ||||||||||||||||||||
Year Ended 6/30/18 | $ | 22.31 | 0.35 | 2.67 | 3.02 | (0.34 | ) | (3.33 | ) | (3.67 | ) | ||||||||||||||||||||
Year Ended 6/30/17 | $ | 20.64 | 0.36 | 3.08 | 3.44 | (0.38 | ) | (1.39 | ) | (1.77 | ) | ||||||||||||||||||||
Year Ended 6/30/16 | $ | 22.33 | 0.39 | 0.36 | 0.75 | (0.39 | ) | (2.07 | ) | (2.46 | ) |
(a) Per share net investment income (loss) has been calculated using the average daily shares method.
(b) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
(c) The Fund is receiving monies related to a nonrecurring refund from the prior custodian. The corresponding impact to the total return was 0.09% for the year ended June 30, 2016. (See Note 8).
See notes to financial statements.
156
Victory Portfolios | Financial Highlights — continued |
For a Share Outstanding Throughout Each Period
Ratios to Average Net Assets | Supplemental Data | ||||||||||||||||||||||||||||||||||
Capital Contributions from Prior Custodian, Net (See Note 8) | Net Asset Value, End of Period | Total Return (Excludes Sales Charge) | Net Expenses | Net Investment Income (Loss) | Gross Expenses | Net Assets, End of Period (000's) | Portfolio Turnover(b) | ||||||||||||||||||||||||||||
Victory S&P 500 Index Fund | |||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | — | $ | 19.80 | 6.96 | % | 0.55 | % | 1.42 | % | 0.55 | % | $ | 153,714 | 4 | % | ||||||||||||||||||||
Year Ended 6/30/19 | — | $ | 21.07 | 9.80 | % | 0.53 | % | 1.46 | % | 0.53 | % | $ | 188,004 | 3 | % | ||||||||||||||||||||
Year Ended 6/30/18 | — | $ | 21.52 | 13.73 | % | 0.55 | % | 1.38 | % | 0.55 | % | $ | 192,530 | 2 | % | ||||||||||||||||||||
Year Ended 6/30/17 | — | $ | 22.20 | 17.16 | % | 0.58 | % | 1.47 | % | 0.58 | % | $ | 192,390 | 4 | % | ||||||||||||||||||||
Year Ended 6/30/16 | 0.02 | $ | 20.54 | 3.49 | %(c) | 0.58 | % | 1.66 | % | 0.58 | % | $ | 186,089 | 4 | % | ||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | — | $ | 19.74 | 6.57 | % | 0.95 | % | 1.02 | % | 0.95 | % | $ | 13,726 | 4 | % | ||||||||||||||||||||
Year Ended 6/30/19 | — | $ | 21.01 | 9.31 | % | 0.96 | % | 1.04 | % | 0.96 | % | $ | 14,501 | 3 | % | ||||||||||||||||||||
Year Ended 6/30/18 | — | $ | 21.47 | 13.31 | % | 0.97 | % | 0.97 | % | 0.97 | % | $ | 17,052 | 2 | % | ||||||||||||||||||||
Year Ended 6/30/17 | — | $ | 22.15 | 16.59 | % | 1.03 | % | 1.02 | % | 1.03 | % | $ | 15,487 | 4 | % | ||||||||||||||||||||
Year Ended 6/30/16 | 0.02 | $ | 20.51 | 3.03 | %(c) | 1.02 | % | 1.23 | % | 1.02 | % | $ | 13,221 | 4 | % | ||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | — | $ | 19.96 | 7.07 | % | 0.43 | % | 1.56 | % | 0.43 | % | $ | 46,072 | 4 | % | ||||||||||||||||||||
Year Ended 6/30/19 | — | $ | 21.22 | 9.93 | % | 0.43 | % | 1.57 | % | 0.43 | % | $ | 32,146 | 3 | % | ||||||||||||||||||||
Year Ended 6/30/18 | — | $ | 21.66 | 13.96 | % | 0.39 | % | 1.57 | % | 0.39 | % | $ | 19,932 | 2 | % | ||||||||||||||||||||
Year Ended 6/30/17 | — | $ | 22.31 | 17.33 | % | 0.40 | % | 1.66 | % | 0.40 | % | $ | 28,148 | 4 | % | ||||||||||||||||||||
Year Ended 6/30/16 | 0.02 | $ | 20.64 | 3.74 | %(c) | 0.38 | % | 1.86 | % | 0.38 | % | $ | 35,777 | 4 | % |
See notes to financial statements.
157
Victory Portfolios | Financial Highlights |
For a Share Outstanding Throughout Each Period
Investment Activities | Distributions to Shareholders From | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Realized Gains From Investments | Total Distributions | ||||||||||||||||||||||
Victory Munder Mid-Cap Core Growth Fund | |||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 22.95 | (0.07 | ) | 0.01 | (c) | (0.06 | ) | (11.13 | ) | (11.13 | ) | |||||||||||||||
Year Ended 6/30/19 | $ | 34.56 | (0.13 | ) | (0.72 | )(c) | (0.85 | ) | (10.76 | ) | (10.76 | ) | |||||||||||||||
Year Ended 6/30/18 | $ | 37.21 | (0.11 | ) | 4.55 | 4.44 | (7.09 | ) | (7.09 | ) | |||||||||||||||||
Year Ended 6/30/17 | $ | 35.99 | (0.08 | ) | 5.79 | 5.71 | (4.49 | ) | (4.49 | ) | |||||||||||||||||
Year Ended 6/30/16 | $ | 43.31 | (0.08 | ) | (3.36 | ) | (3.44 | ) | (3.88 | ) | (3.88 | ) | |||||||||||||||
Class C | |||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 15.96 | (0.10 | ) | 0.17 | (c) | 0.07 | (11.13 | ) | (11.13 | ) | ||||||||||||||||
Year Ended 6/30/19 | $ | 27.98 | (0.23 | ) | (1.03 | )(c) | (1.26 | ) | (10.76 | ) | (10.76 | ) | |||||||||||||||
Year Ended 6/30/18 | $ | 31.54 | (0.29 | ) | 3.82 | 3.53 | (7.09 | ) | (7.09 | ) | |||||||||||||||||
Year Ended 6/30/17 | $ | 31.34 | (0.27 | ) | 4.96 | 4.69 | (4.49 | ) | (4.49 | ) | |||||||||||||||||
Year Ended 6/30/16 | $ | 38.51 | (0.29 | ) | (3.00 | ) | (3.29 | ) | (3.88 | ) | (3.88 | ) | |||||||||||||||
Class R | |||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 21.16 | (0.09 | ) | 0.04 | (c) | (0.05 | ) | (11.13 | ) | (11.13 | ) | |||||||||||||||
Year Ended 6/30/19 | $ | 32.91 | (0.20 | ) | (0.79 | )(c) | (0.99 | ) | (10.76 | ) | (10.76 | ) | |||||||||||||||
Year Ended 6/30/18 | $ | 35.82 | (0.20 | ) | 4.38 | 4.18 | (7.09 | ) | (7.09 | ) | |||||||||||||||||
Year Ended 6/30/17 | $ | 34.89 | (0.16 | ) | 5.58 | 5.42 | (4.49 | ) | (4.49 | ) | |||||||||||||||||
Year Ended 6/30/16 | $ | 42.22 | (0.17 | ) | (3.28 | ) | (3.45 | ) | (3.88 | ) | (3.88 | ) | |||||||||||||||
Class R6 | |||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 26.00 | — | (d) | (0.07 | ) | (0.07 | ) | (11.13 | ) | (11.13 | ) | |||||||||||||||
Year Ended 6/30/19 | $ | 37.36 | — | (d) | (0.60 | )(c) | (0.60 | ) | (10.76 | ) | (10.76 | ) | |||||||||||||||
Year Ended 6/30/18 | $ | 39.55 | 0.06 | 4.84 | 4.90 | (7.09 | ) | (7.09 | ) | ||||||||||||||||||
Year Ended 6/30/17 | $ | 37.82 | 0.10 | 6.12 | 6.22 | (4.49 | ) | (4.49 | ) | ||||||||||||||||||
Year Ended 6/30/16 | $ | 45.11 | 0.10 | (3.51 | ) | (3.41 | ) | (3.88 | ) | (3.88 | ) | ||||||||||||||||
Class Y | |||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 25.37 | (0.04 | ) | (0.05 | ) | (0.09 | ) | (11.13 | ) | (11.13 | ) | |||||||||||||||
Year Ended 6/30/19 | $ | 36.79 | (0.07 | ) | (0.59 | )(c) | (0.66 | ) | (10.76 | ) | (10.76 | ) | |||||||||||||||
Year Ended 6/30/18 | $ | 39.10 | (0.01 | ) | 4.79 | 4.78 | (7.09 | ) | (7.09 | ) | |||||||||||||||||
Year Ended 6/30/17 | $ | 37.51 | 0.02 | 6.06 | 6.08 | (4.49 | ) | (4.49 | ) | ||||||||||||||||||
Year Ended 6/30/16 | $ | 44.85 | 0.02 | (3.48 | ) | (3.46 | ) | (3.88 | ) | (3.88 | ) |
(a) Per share net investment income (loss) has been calculated using the average daily shares method.
(b) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
(c) The amount shown for a share outstanding throughout the period does not accord with the change in aggregate gains and losses in the portfolio of securities during the period because of timing of sales and purchases of fund shares in relation to fluctuating market values during the period.
(d) Amount is less than $0.005 per share.
See notes to financial statements.
158
Victory Portfolios | Financial Highlights — continued |
For a Share Outstanding Throughout Each Period
Ratios to Average Net Assets | Supplemental Data | ||||||||||||||||||||||||||||||||||
Capital Contributions from Prior Custodian, Net (See Note 8) | Net Asset Value, End of Period | Total Return (Excludes Sales Charge) | Net Expenses | Net Investment Income (Loss) | Gross Expenses | Net Assets, End of Period (000's) | Portfolio Turnover(b) | ||||||||||||||||||||||||||||
Victory Munder Mid-Cap Core Growth Fund | |||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | — | $ | 11.76 | (3.04 | )% | 1.29 | % | (0.40 | )% | 1.29 | % | $ | 186,571 | 86 | % | ||||||||||||||||||||
Year Ended 6/30/19 | — | $ | 22.95 | 4.18 | % | 1.28 | % | (0.49 | )% | 1.28 | % | $ | 292,120 | 82 | % | ||||||||||||||||||||
Year Ended 6/30/18 | — | $ | 34.56 | 12.08 | % | 1.28 | % | (0.29 | )% | 1.28 | % | $ | 575,926 | 50 | % | ||||||||||||||||||||
Year Ended 6/30/17 | — | $ | 37.21 | 17.18 | % | 1.31 | % | (0.21 | )% | 1.31 | % | $ | 657,496 | 55 | % | ||||||||||||||||||||
Year Ended 6/30/16 | — | (d) | $ | 35.99 | (7.94 | )% | 1.32 | % | (0.21 | )% | 1.34 | % | $ | 970,418 | 40 | % | |||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | — | $ | 4.90 | (3.82 | )% | 2.03 | % | (1.15 | )% | 2.03 | % | $ | 14,053 | 86 | % | ||||||||||||||||||||
Year Ended 6/30/19 | — | $ | 15.96 | 3.51 | % | 1.94 | % | (1.14 | )% | 1.94 | % | $ | 26,825 | 82 | % | ||||||||||||||||||||
Year Ended 6/30/18 | — | $ | 27.98 | 11.28 | % | 1.96 | % | (0.94 | )% | 1.96 | % | $ | 52,210 | 50 | % | ||||||||||||||||||||
Year Ended 6/30/17 | — | $ | 31.54 | 16.43 | % | 1.97 | % | (0.88 | )% | 1.97 | % | $ | 148,305 | 55 | % | ||||||||||||||||||||
Year Ended 6/30/16 | — | (d) | $ | 31.34 | (8.58 | )% | 2.00 | % | (0.89 | )% | 2.00 | % | $ | 200,199 | 40 | % | |||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | — | $ | 9.98 | (3.28 | )% | 1.57 | % | (0.68 | )% | 1.67 | % | $ | 12,943 | 86 | % | ||||||||||||||||||||
Year Ended 6/30/19 | — | $ | 21.16 | 3.85 | % | 1.57 | % | (0.79 | )% | 1.69 | % | $ | 18,438 | 82 | % | ||||||||||||||||||||
Year Ended 6/30/18 | — | $ | 32.91 | 11.79 | % | 1.57 | % | (0.58 | )% | 1.65 | % | $ | 25,939 | 50 | % | ||||||||||||||||||||
Year Ended 6/30/17 | — | $ | 35.82 | 16.87 | % | 1.57 | % | (0.47 | )% | 1.64 | % | $ | 32,913 | 55 | % | ||||||||||||||||||||
Year Ended 6/30/16 | — | (d) | $ | 34.89 | (8.19 | )% | 1.57 | % | (0.46 | )% | 1.62 | % | $ | 39,928 | 40 | % | |||||||||||||||||||
Class R6 | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | — | $ | 14.80 | (2.60 | )% | 0.86 | % | 0.01 | % | 0.86 | % | $ | 113,104 | 86 | % | ||||||||||||||||||||
Year Ended 6/30/19 | — | $ | 26.00 | 4.57 | % | 0.87 | % | (0.01 | )% | 0.87 | % | $ | 310,949 | 82 | % | ||||||||||||||||||||
Year Ended 6/30/18 | — | $ | 37.36 | 12.56 | % | 0.84 | % | 0.15 | % | 0.84 | % | $ | 685,568 | 50 | % | ||||||||||||||||||||
Year Ended 6/30/17 | — | $ | 39.55 | 17.73 | % | 0.85 | % | 0.26 | % | 0.85 | % | $ | 761,607 | 55 | % | ||||||||||||||||||||
Year Ended 6/30/16 | — | (d) | $ | 37.82 | (7.54 | )% | 0.87 | % | 0.25 | % | 0.87 | % | $ | 752,971 | 40 | % | |||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | — | $ | 14.15 | (2.76 | )% | 1.04 | % | (0.18 | )% | 1.04 | % | $ | 257,692 | 86 | % | ||||||||||||||||||||
Year Ended 6/30/19 | — | $ | 25.37 | 4.47 | % | 1.02 | % | (0.22 | )% | 1.02 | % | $ | 810,261 | 82 | % | ||||||||||||||||||||
Year Ended 6/30/18 | — | $ | 36.79 | 12.38 | % | 1.01 | % | (0.02 | )% | 1.01 | % | $ | 2,240,305 | 50 | % | ||||||||||||||||||||
Year Ended 6/30/17 | — | $ | 39.10 | 17.49 | % | 1.04 | % | 0.06 | % | 1.05 | % | $ | 2,345,812 | 55 | % | ||||||||||||||||||||
Year Ended 6/30/16 | — | (d) | $ | 37.51 | (7.71 | )% | 1.06 | % | 0.05 | % | 1.06 | % | $ | 2,965,306 | 40 | % |
See notes to financial statements.
159
Victory Portfolios | Financial Highlights |
For a Share Outstanding Throughout Each Period
Investment Activities | Distributions to Shareholders From | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Realized Gains from Investments | Total Distributions | ||||||||||||||||||||||
Victory Munder Small Cap Growth Fund | |||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 13.39 | (0.09 | ) | 1.88 | 1.79 | (1.05 | ) | (1.05 | ) | |||||||||||||||||
Year Ended 6/30/19 | $ | 13.81 | (0.12 | ) | 1.12 | 1.00 | (1.42 | ) | (1.42 | ) | |||||||||||||||||
Year Ended 6/30/18 | $ | 11.14 | (0.10 | ) | 2.84 | 2.74 | (0.07 | ) | (0.07 | ) | |||||||||||||||||
Year Ended 6/30/17 | $ | 8.59 | (0.05 | ) | 2.60 | 2.55 | — | — | |||||||||||||||||||
Year Ended 6/30/16 | $ | 10.47 | (0.07 | ) | (1.81 | ) | (1.88 | ) | — | — | |||||||||||||||||
Class I | |||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 13.56 | (0.05 | ) | 1.89 | 1.84 | (1.05 | ) | (1.05 | ) | |||||||||||||||||
Year Ended 6/30/19 | $ | 13.92 | (0.09 | ) | 1.15 | 1.06 | (1.42 | ) | (1.42 | ) | |||||||||||||||||
Year Ended 6/30/18 | $ | 11.21 | (0.07 | ) | 2.85 | 2.78 | (0.07 | ) | (0.07 | ) | |||||||||||||||||
Year Ended 6/30/17 | $ | 8.62 | (0.01 | ) | 2.60 | 2.59 | — | — | |||||||||||||||||||
Year Ended 6/30/16 | $ | 10.48 | (0.05 | ) | (1.81 | ) | (1.86 | ) | — | — | |||||||||||||||||
Class Y | |||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 13.44 | (0.06 | ) | 1.87 | 1.81 | (1.05 | ) | (1.05 | ) | |||||||||||||||||
Year Ended 6/30/19 | $ | 13.88 | (0.11 | ) | 1.09 | 0.98 | (1.42 | ) | (1.42 | ) | |||||||||||||||||
Year Ended 6/30/18 | $ | 11.18 | (0.09 | ) | 2.86 | 2.77 | (0.07 | ) | (0.07 | ) | |||||||||||||||||
Year Ended 6/30/17 | $ | 8.61 | (0.02 | ) | 2.59 | 2.57 | — | — | |||||||||||||||||||
Year Ended 6/30/16 | $ | 10.48 | (0.05 | ) | (1.82 | ) | (1.87 | ) | — | — |
(a) Per share net investment income (loss) has been calculated using the average daily shares method.
(b) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
See notes to financial statements.
160
Victory Portfolios | Financial Highlights — continued |
For a Share Outstanding Throughout Each Period
Ratios to Average Net Assets | Supplemental Data | ||||||||||||||||||||||||||||||
Net Asset Value, End of Period | Total Return (Excludes Sales Charge) | Net Expenses | Net Investment Income (Loss) | Gross Expenses | Net Assets, End of Period (000's) | Portfolio Turnover(b) | |||||||||||||||||||||||||
Victory Munder Small Cap Growth Fund | |||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 14.13 | 13.64 | % | 1.40 | % | (0.67 | )% | 2.26 | % | $ | 359 | 56 | % | |||||||||||||||||
Year Ended 6/30/19 | $ | 13.39 | 10.06 | % | 1.40 | % | (0.90 | )% | 2.31 | % | $ | 189 | 108 | % | |||||||||||||||||
Year Ended 6/30/18 | $ | 13.81 | 24.73 | % | 1.40 | % | (0.86 | )% | 2.69 | % | $ | 174 | 62 | % | |||||||||||||||||
Year Ended 6/30/17 | $ | 11.14 | 29.69 | % | 1.40 | % | (0.52 | )% | 4.67 | % | $ | 83 | 56 | % | |||||||||||||||||
Year Ended 6/30/16 | $ | 8.59 | (17.96 | )% | 1.40 | % | (0.73 | )% | 11.23 | % | $ | 49 | 55 | % | |||||||||||||||||
Class I | |||||||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 14.35 | 13.85 | % | 1.15 | % | (0.39 | )% | 1.32 | % | $ | 10,370 | 56 | % | |||||||||||||||||
Year Ended 6/30/19 | $ | 13.56 | 10.44 | % | 1.15 | % | (0.65 | )% | 1.17 | % | $ | 9,034 | 108 | % | |||||||||||||||||
Year Ended 6/30/18 | $ | 13.92 | 24.94 | % | 1.15 | % | (0.61 | )% | 1.31 | % | $ | 7,518 | 62 | % | |||||||||||||||||
Year Ended 6/30/17 | $ | 11.21 | 30.05 | % | 1.15 | % | (0.12 | )% | 1.37 | % | $ | 6,049 | 56 | % | |||||||||||||||||
Year Ended 6/30/16 | $ | 8.62 | (17.75 | )% | 1.15 | % | (0.51 | )% | 2.49 | % | $ | 4,337 | 55 | % | |||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 14.20 | 13.74 | % | 1.25 | % | (0.49 | )% | 2.84 | % | $ | 87 | 56 | % | |||||||||||||||||
Year Ended 6/30/19 | $ | 13.44 | 9.84 | % | 1.25 | % | (0.77 | )% | 1.45 | % | $ | 77 | 108 | % | |||||||||||||||||
Year Ended 6/30/18 | $ | 13.88 | 24.92 | % | 1.25 | % | (0.71 | )% | 2.98 | % | $ | 70 | 62 | % | |||||||||||||||||
Year Ended 6/30/17 | $ | 11.18 | 29.85 | % | 1.25 | % | (0.22 | )% | 3.98 | % | $ | 56 | 56 | % | |||||||||||||||||
Year Ended 6/30/16 | $ | 8.61 | (17.84 | )% | 1.25 | % | (0.59 | )% | 13.34 | % | $ | 43 | 55 | % |
See notes to financial statements.
161
Victory Portfolios | Financial Highlights |
For a Share Outstanding Throughout Each Period
Investment Activities | Distributions to Shareholders From | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains from Investments | ||||||||||||||||||||||
Victory Trivalent Emerging Markets Small-Cap Fund | |||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 11.77 | 0.12 | (0.06 | ) | 0.06 | (0.09 | ) | — | ||||||||||||||||||
Year Ended 6/30/19 | $ | 13.62 | 0.16 | (1.07 | ) | (0.91 | ) | (0.16 | ) | (0.78 | ) | ||||||||||||||||
Year Ended 6/30/18 | $ | 12.34 | 0.12 | 1.51 | 1.63 | (0.11 | ) | (0.24 | ) | ||||||||||||||||||
Year Ended 6/30/17 | $ | 10.40 | 0.13 | 1.90 | 2.03 | (0.09 | ) | — | |||||||||||||||||||
Year Ended 6/30/16 | $ | 11.48 | 0.10 | (1.13 | ) | (1.03 | ) | (0.05 | ) | — | |||||||||||||||||
Class Y | |||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 11.78 | 0.15 | (0.07 | ) | 0.08 | (0.11 | ) | — | ||||||||||||||||||
Year Ended 6/30/19 | $ | 13.62 | 0.19 | (1.08 | ) | (0.89 | ) | (0.17 | ) | (0.78 | ) | ||||||||||||||||
Year Ended 6/30/18 | $ | 12.38 | 0.17 | 1.50 | 1.67 | (0.19 | ) | (0.24 | ) | ||||||||||||||||||
Year Ended 6/30/17 | $ | 10.43 | 0.12 | 1.94 | 2.06 | (0.11 | ) | — | |||||||||||||||||||
Year Ended 6/30/16 | $ | 11.51 | 0.13 | (1.13 | ) | (1.00 | ) | (0.08 | ) | — |
(a) Per share net investment income (loss) has been calculated using the average daily shares method.
(b) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
See notes to financial statements.
162
Victory Portfolios | Financial Highlights — continued |
For a Share Outstanding Throughout Each Period
Ratios to Average Net Assets | Supplemental Data | ||||||||||||||||||||||||||||||||||
Total Distributions | Net Asset Value, End of Period | Total Return (Excludes Sales Charge) | Net Expenses | Net Investment Income (Loss) | Gross Expenses | Net Assets, End of Period (000's) | Portfolio Turnover(b) | ||||||||||||||||||||||||||||
Victory Trivalent Emerging Markets Small-Cap Fund | |||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | (0.09 | ) | $ | 11.74 | 0.48 | % | 1.73 | % | 1.07 | % | 3.18 | % | $ | 933 | 64 | % | |||||||||||||||||||
Year Ended 6/30/19 | (0.94 | ) | $ | 11.77 | (5.97 | )% | 1.73 | % | 1.32 | % | 2.72 | % | $ | 1,003 | 78 | % | |||||||||||||||||||
Year Ended 6/30/18 | (0.35 | ) | $ | 13.62 | 13.12 | % | 1.73 | % | 0.86 | % | 3.46 | % | $ | 1,257 | 93 | % | |||||||||||||||||||
Year Ended 6/30/17 | (0.09 | ) | $ | 12.34 | 19.71 | % | 1.73 | % | 1.16 | % | 4.46 | % | $ | 690 | 81 | % | |||||||||||||||||||
Year Ended 6/30/16 | (0.05 | ) | $ | 10.40 | (8.93 | )% | 1.73 | % | 0.95 | % | 1.74 | % | $ | 278 | 104 | % | |||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | (0.11 | ) | $ | 11.75 | 0.70 | % | 1.48 | % | 1.34 | % | 2.67 | % | $ | 7,495 | 64 | % | |||||||||||||||||||
Year Ended 6/30/19 | (0.95 | ) | $ | 11.78 | (5.76 | )% | 1.48 | % | 1.57 | % | 2.22 | % | $ | 7,907 | 78 | % | |||||||||||||||||||
Year Ended 6/30/18 | (0.43 | ) | $ | 13.62 | 13.38 | % | 1.48 | % | 1.22 | % | 3.02 | % | $ | 7,767 | 93 | % | |||||||||||||||||||
Year Ended 6/30/17 | (0.11 | ) | $ | 12.38 | 20.01 | % | 1.48 | % | 1.08 | % | 3.46 | % | $ | 4,894 | 81 | % | |||||||||||||||||||
Year Ended 6/30/16 | (0.08 | ) | $ | 10.43 | (8.69 | )% | 1.48 | % | 1.29 | % | 2.40 | % | $ | 3,671 | 104 | % |
See notes to financial statements.
163
Victory Portfolios | Financial Highlights |
For a Share Outstanding Throughout Each Period
Investment Activities | Distributions to Shareholders From | ||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains from Investments | Total Distributions | |||||||||||||||||||||||||
Victory Trivalent International Fund-Core Equity Fund | |||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 6.87 | 0.12 | (0.44 | ) | (0.32 | ) | (0.06 | ) | — | (0.06 | ) | |||||||||||||||||||
Year Ended 6/30/19 | $ | 7.28 | 0.14 | (0.30 | ) | (0.16 | ) | (0.13 | ) | (0.12 | ) | (0.25 | ) | ||||||||||||||||||
Year Ended 6/30/18 | $ | 7.21 | 0.13 | 0.44 | 0.57 | (0.13 | ) | (0.37 | ) | (0.50 | ) | ||||||||||||||||||||
Year Ended 6/30/17 | $ | 6.18 | 0.08 | 1.07 | 1.15 | (0.12 | ) | — | (0.12 | ) | |||||||||||||||||||||
Year Ended 6/30/16 | $ | 7.01 | 0.08 | (0.86 | ) | (0.78 | ) | (0.10 | ) | — | (0.10 | ) | |||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 6.84 | 0.06 | (0.43 | ) | (0.37 | ) | (0.01 | ) | — | (0.01 | ) | |||||||||||||||||||
Year Ended 6/30/19 | $ | 7.22 | 0.08 | (0.27 | ) | (0.19 | ) | (0.07 | ) | (0.12 | ) | (0.19 | ) | ||||||||||||||||||
Year Ended 6/30/18 | $ | 7.16 | 0.05 | 0.45 | 0.50 | (0.07 | ) | (0.37 | ) | (0.44 | ) | ||||||||||||||||||||
Year Ended 6/30/17 | $ | 6.14 | 0.03 | 1.07 | 1.10 | (0.08 | ) | — | (0.08 | ) | |||||||||||||||||||||
Year Ended 6/30/16 | $ | 6.96 | 0.04 | (0.86 | ) | (0.82 | ) | (0.05 | ) | — | (0.05 | ) | |||||||||||||||||||
Class I | |||||||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 6.90 | 0.14 | (0.43 | ) | (0.29 | ) | (0.08 | ) | — | (0.08 | ) | |||||||||||||||||||
Year Ended 6/30/19 | $ | 7.29 | 0.17 | (0.30 | ) | (0.13 | ) | (0.14 | ) | (0.12 | ) | (0.26 | ) | ||||||||||||||||||
Year Ended 6/30/18 | $ | 7.23 | 0.24 | 0.34 | 0.58 | (0.15 | ) | (0.37 | ) | (0.52 | ) | ||||||||||||||||||||
Year Ended 6/30/17 | $ | 6.20 | 0.12 | 1.06 | 1.18 | (0.15 | ) | — | (0.15 | ) | |||||||||||||||||||||
Year Ended 6/30/16 | $ | 7.03 | 0.11 | (0.85 | ) | (0.74 | ) | (0.14 | ) | — | (0.14 | ) |
* Includes adjustments in accordance with U.S. generally accepted accounting principles.
(a) Per share net investment income (loss) has been calculated using the average daily shares method.
(b) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
(c) The Fund received monies related to a nonrecurring refund from prior custodian. The corresponding impact to the total return was 0.76% for the year ended June 30, 2016. (See Note 8).
See notes to financial statements.
164
Victory Portfolios | Financial Highlights — continued |
For a Share Outstanding Throughout Each Period
Ratios to Average Net Assets | Supplemental Data | ||||||||||||||||||||||||||||||||||
Capital Contributions from Prior Custodian, Net (See Note 8) | Net Asset Value, End of Period | Total Return (Excludes Sales Charge)* | Net Expenses | Net Investment Income (Loss) | Gross Expenses | Net Assets, End of Period (000's) | Portfolio Turnover(b) | ||||||||||||||||||||||||||||
Victory Trivalent International Fund-Core Equity Fund | |||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | — | $ | 6.49 | (4.72 | )% | 0.95 | % | 1.73 | % | 1.84 | % | $ | 4,550 | 49 | % | ||||||||||||||||||||
Year Ended 6/30/19 | — | $ | 6.87 | (1.69 | )% | 0.95 | % | 2.08 | % | 1.96 | % | $ | 5,347 | 56 | % | ||||||||||||||||||||
Year Ended 6/30/18 | — | $ | 7.28 | 7.74 | % | 1.11 | % | 1.71 | % | 1.91 | % | $ | 8,620 | 51 | % | ||||||||||||||||||||
Year Ended 6/30/17 | — | $ | 7.21 | 18.95 | % | 1.38 | % | 1.22 | % | 2.27 | % | $ | 5,658 | 91 | % | ||||||||||||||||||||
Year Ended 6/30/16 | 0.05 | $ | 6.18 | (10.43 | )%(c) | 1.47 | % | 1.31 | % | 1.80 | % | $ | 4,687 | 61 | % | ||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | — | $ | 6.46 | (5.48 | )% | 1.70 | % | 0.87 | % | 6.44 | % | $ | 204 | 49 | % | ||||||||||||||||||||
Year Ended 6/30/19 | — | $ | 6.84 | (2.19 | )% | 1.70 | % | 1.22 | % | 5.22 | % | $ | 335 | 56 | % | ||||||||||||||||||||
Year Ended 6/30/18 | — | $ | 7.22 | 6.81 | % | 1.87 | % | 0.64 | % | 3.61 | % | $ | 449 | 51 | % | ||||||||||||||||||||
Year Ended 6/30/17 | — | $ | 7.16 | 18.01 | % | 2.14 | % | 0.42 | % | 2.97 | % | $ | 773 | 91 | % | ||||||||||||||||||||
Year Ended 6/30/16 | 0.05 | $ | 6.14 | (11.08 | )%(c) | 2.22 | % | 0.63 | % | 2.33 | % | $ | 1,111 | 61 | % | ||||||||||||||||||||
Class I | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | — | $ | 6.53 | (4.36 | )% | 0.60 | % | 2.12 | % | 1.54 | % | $ | 2,579 | 49 | % | ||||||||||||||||||||
Year Ended 6/30/19 | — | $ | 6.90 | (1.19 | )% | 0.60 | % | 2.48 | % | 1.76 | % | $ | 2,268 | 56 | % | ||||||||||||||||||||
Year Ended 6/30/18 | — | $ | 7.29 | 8.07 | % | 0.72 | % | 3.17 | % | 2.67 | % | $ | 2,575 | 51 | % | ||||||||||||||||||||
Year Ended 6/30/17 | — | $ | 7.23 | 19.47 | % | 0.90 | % | 1.84 | % | 6.48 | % | $ | 378 | 91 | % | ||||||||||||||||||||
Year Ended 6/30/16 | 0.05 | $ | 6.20 | (9.92 | )%(c) | 0.96 | % | 1.78 | % | 4.02 | % | $ | 192 | 61 | % |
(continues on next page)
See notes to financial statements.
165
Victory Portfolios | Financial Highlights |
For a Share Outstanding Throughout Each Period
Investment Activities | Distributions to Shareholders From | ||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains from Investments | Total Distributions | |||||||||||||||||||||||||
Victory Trivalent International Fund-Core Equity Fund | |||||||||||||||||||||||||||||||
Class R6 | |||||||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 6.92 | 0.14 | (0.43 | ) | (0.29 | ) | (0.06 | ) | — | (0.06 | ) | |||||||||||||||||||
Year Ended 6/30/19 | $ | 7.31 | 0.17 | (0.29 | ) | (0.12 | ) | (0.15 | ) | (0.12 | ) | (0.27 | ) | ||||||||||||||||||
Year Ended 6/30/18 | $ | 7.23 | 0.21 | 0.39 | 0.60 | (0.15 | ) | (0.37 | ) | (0.52 | ) | ||||||||||||||||||||
Year Ended 6/30/17 | $ | 6.21 | 0.11 | 1.07 | 1.18 | (0.16 | ) | — | (0.16 | ) | |||||||||||||||||||||
Year Ended 6/30/16 | $ | 7.03 | 0.12 | (0.86 | ) | (0.74 | ) | (0.13 | ) | — | (0.13 | ) | |||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 6.87 | 0.13 | (0.44 | ) | (0.31 | ) | (0.08 | ) | — | (0.08 | ) | |||||||||||||||||||
Year Ended 6/30/19 | $ | 7.26 | 0.15 | (0.28 | ) | (0.13 | ) | (0.14 | ) | (0.12 | ) | (0.26 | ) | ||||||||||||||||||
Year Ended 6/30/18 | $ | 7.20 | 0.12 | 0.46 | 0.58 | (0.15 | ) | (0.37 | ) | (0.52 | ) | ||||||||||||||||||||
Year Ended 6/30/17 | $ | 6.17 | 0.09 | 1.08 | 1.17 | (0.14 | ) | — | (0.14 | ) | |||||||||||||||||||||
Year Ended 6/30/16 | $ | 7.00 | 0.10 | (0.86 | ) | (0.76 | ) | (0.12 | ) | — | (0.12 | ) |
* Includes adjustments in accordance with U.S. generally accepted accounting principles.
(a) Per share net investment income (loss) has been calculated using the average daily shares method.
(b) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
(c) The Fund received monies related to a nonrecurring refund from prior custodian. The corresponding impact to the total return was 0.76% for the year ended June 30, 2016. (See Note 8).
See notes to financial statements.
166
Victory Portfolios | Financial Highlights — continued |
For a Share Outstanding Throughout Each Period
Ratios to Average Net Assets | Supplemental Data | ||||||||||||||||||||||||||||||||||
Capital Contributions from Prior Custodian, Net (See Note 8) | Net Asset Value, End of Period | Total Return (Excludes Sales Charge)* | Net Expenses | Net Investment Income (Loss) | Gross Expenses | Net Assets, End of Period (000's) | Portfolio Turnover(b) | ||||||||||||||||||||||||||||
Victory Trivalent International Fund-Core Equity Fund | |||||||||||||||||||||||||||||||||||
Class R6 | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | — | $ | 6.57 | (4.34 | )% | 0.55 | % | 2.06 | % | 1.01 | % | $ | 119,275 | 49 | % | ||||||||||||||||||||
Year Ended 6/30/19 | — | $ | 6.92 | (1.12 | )% | 0.55 | % | 2.53 | % | 1.45 | % | $ | 5,661 | 56 | % | ||||||||||||||||||||
Year Ended 6/30/18 | — | $ | 7.31 | 8.14 | % | 0.71 | % | 2.71 | % | 1.71 | % | $ | 5,975 | 51 | % | ||||||||||||||||||||
Year Ended 6/30/17 | — | $ | 7.23 | 19.39 | % | 0.91 | % | 1.63 | % | 2.44 | % | $ | 1,628 | 91 | % | ||||||||||||||||||||
Year Ended 6/30/16 | 0.05 | $ | 6.21 | (9.86 | )%(c) | 0.96 | % | 1.86 | % | 2.19 | % | $ | 1,575 | 61 | % | ||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | — | $ | 6.48 | (4.60 | )% | 0.70 | % | 1.95 | % | 1.32 | % | $ | 6,532 | 49 | % | ||||||||||||||||||||
Year Ended 6/30/19 | — | $ | 6.87 | (1.34 | )% | 0.70 | % | 2.26 | % | 1.40 | % | $ | 8,482 | 56 | % | ||||||||||||||||||||
Year Ended 6/30/18 | — | $ | 7.26 | 8.01 | % | 0.87 | % | 1.62 | % | 1.49 | % | $ | 9,712 | 51 | % | ||||||||||||||||||||
Year Ended 6/30/17 | — | $ | 7.20 | 19.28 | % | 1.14 | % | 1.39 | % | 1.58 | % | $ | 14,086 | 91 | % | ||||||||||||||||||||
Year Ended 6/30/16 | 0.05 | $ | 6.17 | (10.19 | )%(c) | 1.22 | % | 1.53 | % | 1.28 | % | $ | 12,958 | 61 | % |
See notes to financial statements.
167
Victory Portfolios | Financial Highlights |
For a Share Outstanding Throughout Each Period
Investment Activities | Distributions to Shareholders From | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains from Investments | ||||||||||||||||||||||
Victory Trivalent International Small-Cap Fund | |||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 13.02 | 0.06 | (0.02 | ) | 0.04 | (0.23 | ) | — | ||||||||||||||||||
Year Ended 6/30/19 | $ | 14.46 | 0.13 | (1.22 | ) | (1.09 | ) | (0.09 | ) | (0.26 | ) | ||||||||||||||||
Year Ended 6/30/18 | $ | 12.87 | 0.10 | 1.72 | 1.82 | (0.15 | ) | (0.08 | ) | ||||||||||||||||||
Year Ended 6/30/17 | $ | 10.67 | 0.11 | 2.22 | 2.33 | (0.13 | ) | — | |||||||||||||||||||
Year Ended 6/30/16 | $ | 11.86 | 0.10 | (1.05 | ) | (0.95 | ) | (0.10 | ) | (0.14 | ) | ||||||||||||||||
Class C | |||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 12.71 | (0.03 | ) | (0.03 | ) | (0.06 | ) | (0.14 | ) | — | ||||||||||||||||
Year Ended 6/30/19 | $ | 14.12 | 0.02 | (1.17 | ) | (1.15 | ) | — | (0.26 | ) | |||||||||||||||||
Year Ended 6/30/18 | $ | 12.58 | — | (c) | 1.67 | 1.67 | (0.05 | ) | (0.08 | ) | |||||||||||||||||
Year Ended 6/30/17 | $ | 10.42 | 0.02 | 2.18 | 2.20 | (0.04 | ) | — | |||||||||||||||||||
Year Ended 6/30/16 | $ | 11.62 | 0.02 | (1.04 | ) | (1.02 | ) | (0.04 | ) | (0.14 | ) | ||||||||||||||||
Class I | |||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 13.13 | 0.11 | (0.02 | ) | 0.09 | (0.28 | ) | — | ||||||||||||||||||
Year Ended 6/30/19 | $ | 14.58 | 0.18 | (1.23 | ) | (1.05 | ) | (0.14 | ) | (0.26 | ) | ||||||||||||||||
Year Ended 6/30/18 | $ | 12.96 | 0.18 | 1.71 | 1.89 | (0.19 | ) | (0.08 | ) | ||||||||||||||||||
Year Ended 6/30/17 | $ | 10.75 | 0.17 | 2.21 | 2.38 | (0.17 | ) | — | |||||||||||||||||||
Year Ended 6/30/16 | $ | 11.93 | 0.16 | (1.07 | ) | (0.91 | ) | (0.13 | ) | (0.14 | ) | ||||||||||||||||
Class R6 | |||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 13.19 | 0.12 | (0.04 | ) | 0.08 | (0.27 | ) | — | ||||||||||||||||||
Year Ended 6/30/19 | $ | 14.65 | 0.17 | (1.24 | ) | (1.07 | ) | (0.13 | ) | (0.26 | ) | ||||||||||||||||
Year Ended 6/30/18 | $ | 13.02 | 0.15 | 1.73 | 1.88 | (0.17 | ) | (0.08 | ) | ||||||||||||||||||
Year Ended 6/30/17 | $ | 10.80 | 0.18 | 2.20 | 2.38 | (0.16 | ) | — | |||||||||||||||||||
Year Ended 6/30/16 | $ | 11.99 | 0.17 | (1.10 | ) | (0.93 | ) | (0.12 | ) | (0.14 | ) | ||||||||||||||||
Class Y | |||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 13.07 | 0.10 | (0.03 | ) | 0.07 | (0.26 | ) | — | ||||||||||||||||||
Year Ended 6/30/19 | $ | 14.52 | 0.16 | (1.22 | ) | (1.06 | ) | (0.13 | ) | (0.26 | ) | ||||||||||||||||
Year Ended 6/30/18 | $ | 12.91 | 0.15 | 1.71 | 1.86 | (0.17 | ) | (0.08 | ) | ||||||||||||||||||
Year Ended 6/30/17 | $ | 10.71 | 0.15 | 2.21 | 2.36 | (0.16 | ) | — | |||||||||||||||||||
Year Ended 6/30/16 | $ | 11.89 | 0.18 | (1.10 | ) | (0.92 | ) | (0.12 | ) | (0.14 | ) |
(a) Per share net investment income (loss) has been calculated using the average daily shares method.
(b) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
(c) Amount is less than $0.005 per share.
See notes to financial statements.
168
Victory Portfolios | Financial Highlights — continued |
For a Share Outstanding Throughout Each Period
Ratios to Average Net Assets | Supplemental Data | ||||||||||||||||||||||||||||||||||
Total Distributions | Net Asset Value, End of Period | Total Return (Excludes Sales Charge) | Net Expenses | Net Investment Income (Loss) | Gross Expenses | Net Assets, End of Period (000's) | Portfolio Turnover(b) | ||||||||||||||||||||||||||||
Victory Trivalent International Small-Cap Fund | |||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | (0.23 | ) | $ | 12.83 | 0.15 | % | 1.35 | % | 0.47 | % | 1.63 | % | $ | 108,115 | 52 | % | |||||||||||||||||||
Year Ended 6/30/19 | (0.35 | ) | $ | 13.02 | (7.12 | )% | 1.35 | % | 1.02 | % | 1.59 | % | $ | 137,665 | 54 | % | |||||||||||||||||||
Year Ended 6/30/18 | (0.23 | ) | $ | 14.46 | 14.14 | % | 1.35 | % | 0.68 | % | 1.56 | % | $ | 122,933 | 62 | % | |||||||||||||||||||
Year Ended 6/30/17 | (0.13 | ) | $ | 12.87 | 22.04 | % | 1.35 | % | 0.99 | % | 1.52 | % | $ | 92,295 | 55 | % | |||||||||||||||||||
Year Ended 6/30/16 | (0.24 | ) | $ | 10.67 | (8.13 | )% | 1.35 | % | 0.88 | % | 1.75 | % | $ | 78,511 | 85 | % | |||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | (0.14 | ) | $ | 12.51 | (0.65 | )% | 2.10 | % | (0.28 | )% | 2.42 | % | $ | 4,327 | 52 | % | |||||||||||||||||||
Year Ended 6/30/19 | (0.26 | ) | $ | 12.71 | (7.78 | )% | 2.10 | % | 0.15 | % | 2.42 | % | $ | 4,909 | 54 | % | |||||||||||||||||||
Year Ended 6/30/18 | (0.13 | ) | $ | 14.12 | 13.28 | % | 2.10 | % | (0.03 | )% | 2.36 | % | $ | 6,211 | 62 | % | |||||||||||||||||||
Year Ended 6/30/17 | (0.04 | ) | $ | 12.58 | 21.14 | % | 2.10 | % | 0.17 | % | 2.47 | % | $ | 5,161 | 55 | % | |||||||||||||||||||
Year Ended 6/30/16 | (0.18 | ) | $ | 10.42 | (8.87 | )% | 2.10 | % | 0.22 | % | 2.36 | % | $ | 5,788 | 85 | % | |||||||||||||||||||
Class I | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | (0.28 | ) | $ | 12.94 | 0.54 | % | 0.95 | % | 0.88 | % | 1.18 | % | $ | 1,014,425 | 52 | % | |||||||||||||||||||
Year Ended 6/30/19 | (0.40 | ) | $ | 13.13 | (6.69 | )% | 0.95 | % | 1.41 | % | 1.16 | % | $ | 955,568 | 54 | % | |||||||||||||||||||
Year Ended 6/30/18 | (0.27 | ) | $ | 14.58 | 14.60 | % | 0.95 | % | 1.22 | % | 1.14 | % | $ | 866,643 | 62 | % | |||||||||||||||||||
Year Ended 6/30/17 | (0.17 | ) | $ | 12.96 | 22.45 | % | 0.95 | % | 1.45 | % | 1.16 | % | $ | 539,822 | 55 | % | |||||||||||||||||||
Year Ended 6/30/16 | (0.27 | ) | $ | 10.75 | (7.74 | )% | 0.95 | % | 1.41 | % | 1.18 | % | $ | 378,011 | 85 | % | |||||||||||||||||||
Class R6 | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | (0.27 | ) | $ | 13.00 | 0.36 | % | 1.06 | % | 0.94 | % | 1.06 | % | $ | 73,480 | 52 | % | |||||||||||||||||||
Year Ended 6/30/19 | (0.39 | ) | $ | 13.19 | (6.86 | )% | 1.08 | % | 1.31 | % | 1.08 | % | $ | 42,975 | 54 | % | |||||||||||||||||||
Year Ended 6/30/18 | (0.25 | ) | $ | 14.65 | 14.49 | % | 1.08 | % | 1.01 | % | 1.08 | % | $ | 39,497 | 62 | % | |||||||||||||||||||
Year Ended 6/30/17 | (0.16 | ) | $ | 13.02 | 22.28 | % | 1.10 | % | 1.50 | % | 1.16 | % | $ | 30,033 | 55 | % | |||||||||||||||||||
Year Ended 6/30/16 | (0.26 | ) | $ | 10.80 | (7.90 | )% | 1.10 | % | 1.51 | % | 1.30 | % | $ | 13,179 | 85 | % | |||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | (0.26 | ) | $ | 12.88 | 0.41 | % | 1.10 | % | 0.75 | % | 1.19 | % | $ | 663,638 | 52 | % | |||||||||||||||||||
Year Ended 6/30/19 | (0.39 | ) | $ | 13.07 | (6.88 | )% | 1.10 | % | 1.21 | % | 1.18 | % | $ | 666,547 | 54 | % | |||||||||||||||||||
Year Ended 6/30/18 | (0.25 | ) | $ | 14.52 | 14.45 | % | 1.10 | % | 1.05 | % | 1.19 | % | $ | 756,933 | 62 | % | |||||||||||||||||||
Year Ended 6/30/17 | (0.16 | ) | $ | 12.91 | 22.27 | % | 1.10 | % | 1.26 | % | 1.32 | % | $ | 450,441 | 55 | % | |||||||||||||||||||
Year Ended 6/30/16 | (0.26 | ) | $ | 10.71 | (7.87 | )% | 1.10 | % | 1.64 | % | 1.37 | % | $ | 360,989 | 85 | % |
See notes to financial statements.
169
Victory Portfolios | Financial Highlights |
For a Share Outstanding Throughout Each Period
Investment Activities | Distributions to Shareholders From | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Total Distributions | ||||||||||||||||||||||
INCORE Total Return Bond Fund | |||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 9.46 | 0.20 | 0.50 | 0.70 | (0.25 | ) | (0.25 | ) | ||||||||||||||||||
Year Ended 6/30/19 | $ | 9.21 | 0.21 | 0.32 | 0.53 | (0.28 | ) | (0.28 | ) | ||||||||||||||||||
Year Ended 6/30/18 | $ | 9.54 | 0.20 | (0.24 | ) | (0.04 | ) | (0.29 | ) | (0.29 | ) | ||||||||||||||||
Year Ended 6/30/17 | $ | 9.79 | 0.23 | (0.14 | ) | 0.09 | (0.34 | ) | (0.34 | ) | |||||||||||||||||
Year Ended 6/30/16 | $ | 9.79 | 0.29 | 0.02 | 0.31 | (0.32 | ) | (0.32 | ) | ||||||||||||||||||
Class C | |||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 9.53 | 0.12 | 0.52 | 0.64 | (0.18 | ) | (0.18 | ) | ||||||||||||||||||
Year Ended 6/30/19 | $ | 9.28 | 0.15 | 0.31 | 0.46 | (0.21 | ) | (0.21 | ) | ||||||||||||||||||
Year Ended 6/30/18 | $ | 9.60 | 0.14 | (0.25 | ) | (0.11 | ) | (0.21 | ) | (0.21 | ) | ||||||||||||||||
Year Ended 6/30/17 | $ | 9.86 | 0.15 | (0.14 | ) | 0.01 | (0.27 | ) | (0.27 | ) | |||||||||||||||||
Year Ended 6/30/16 | $ | 9.86 | 0.22 | 0.02 | 0.24 | (0.25 | ) | (0.25 | ) | ||||||||||||||||||
Class R6 | |||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 9.48 | 0.22 | 0.51 | 0.73 | (0.27 | ) | (0.27 | ) | ||||||||||||||||||
Year Ended 6/30/19 | $ | 9.23 | 0.24 | 0.31 | 0.55 | (0.30 | ) | (0.30 | ) | ||||||||||||||||||
Year Ended 6/30/18 | $ | 9.55 | 0.22 | (0.23 | ) | (0.01 | ) | (0.31 | ) | (0.31 | ) | ||||||||||||||||
Year Ended 6/30/17 | $ | 9.81 | 0.25 | (0.14 | ) | 0.11 | (0.37 | ) | (0.37 | ) | |||||||||||||||||
Year Ended 6/30/16 | $ | 9.81 | 0.31 | 0.02 | 0.33 | (0.34 | ) | (0.34 | ) | ||||||||||||||||||
Class Y | |||||||||||||||||||||||||||
Year Ended 6/30/20 | $ | 9.47 | 0.22 | 0.52 | 0.74 | (0.27 | ) | (0.27 | ) | ||||||||||||||||||
Year Ended 6/30/19 | $ | 9.23 | 0.24 | 0.30 | 0.54 | (0.30 | ) | (0.30 | ) | ||||||||||||||||||
Year Ended 6/30/18 | $ | 9.55 | 0.23 | (0.24 | ) | (0.01 | ) | (0.31 | ) | (0.31 | ) | ||||||||||||||||
Year Ended 6/30/17 | $ | 9.81 | 0.25 | (0.14 | ) | 0.11 | (0.37 | ) | (0.37 | ) | |||||||||||||||||
Year Ended 6/30/16 | $ | 9.81 | 0.32 | 0.01 | 0.33 | (0.34 | ) | (0.34 | ) |
(a) Per share net investment income (loss) has been calculated using the average daily shares method.
(b) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
(c) Portfolio turnover rates excluding mortgage dollar roll transactions were 103%, 57% and 64% for the years ended June 30, 2018, June 30, 2017 and June 30, 2016, respectively.
(d) The Fund received monies related to a nonrecurring refund from prior custodian. The corresponding impact to the total return was 0.05% for the year ended June 30, 2016. (See Note 8)
See notes to financial statements.
170
Victory Portfolios | Financial Highlights — continued |
For a Share Outstanding Throughout Each Period
Ratios to Average Net Assets | Supplemental Data | ||||||||||||||||||||||||||||||||||
Capital Contributions from Prior Custodian, Net (See Note 8) | Net Asset Value, End of Period | Total Return (Excludes Sales Charge) | Net Expenses | Net Investment Income (Loss) | Gross Expenses | Net Assets, End of Period (000's) | Portfolio Turnover(b)(c) | ||||||||||||||||||||||||||||
INCORE Total Return Bond Fund | |||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | — | $ | 9.91 | 7.57 | % | 0.85 | % | 2.03 | % | 1.11 | % | $ | 11,472 | 74 | % | ||||||||||||||||||||
Year Ended 6/30/19 | — | $ | 9.46 | 5.77 | % | 0.85 | % | 2.32 | % | 1.09 | % | $ | 12,248 | 150 | % | ||||||||||||||||||||
Year Ended 6/30/18 | — | $ | 9.21 | (0.49 | )% | 0.85 | % | 2.15 | % | 1.11 | % | $ | 12,592 | 110 | % | ||||||||||||||||||||
Year Ended 6/30/17 | — | $ | 9.54 | 0.97 | % | 0.85 | % | 2.35 | % | 1.07 | % | $ | 14,569 | 210 | % | ||||||||||||||||||||
Year Ended 6/30/16 | 0.01 | $ | 9.79 | 3.34 | %(d) | 0.85 | % | 3.04 | % | 1.08 | % | $ | 15,908 | 423 | % | ||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | — | $ | 9.99 | 6.76 | % | 1.60 | % | 1.27 | % | 3.54 | % | $ | 727 | 74 | % | ||||||||||||||||||||
Year Ended 6/30/19 | — | $ | 9.53 | 5.05 | % | 1.60 | % | 1.67 | % | 3.12 | % | $ | 574 | 150 | % | ||||||||||||||||||||
Year Ended 6/30/18 | — | $ | 9.28 | (1.12 | )% | 1.60 | % | 1.43 | % | 2.31 | % | $ | 973 | 110 | % | ||||||||||||||||||||
Year Ended 6/30/17 | — | $ | 9.60 | 0.13 | % | 1.60 | % | 1.60 | % | 1.61 | % | $ | 2,073 | 210 | % | ||||||||||||||||||||
Year Ended 6/30/16 | 0.01 | $ | 9.86 | 2.56 | %(d) | 1.60 | % | 2.29 | % | 2.00 | % | $ | 3,256 | 423 | % | ||||||||||||||||||||
Class R6 | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | — | $ | 9.94 | 7.94 | % | 0.58 | % | 2.30 | % | 0.59 | % | $ | 25,999 | 74 | % | ||||||||||||||||||||
Year Ended 6/30/19 | — | $ | 9.48 | 6.05 | % | 0.57 | % | 2.61 | % | 0.57 | % | $ | 24,929 | 150 | % | ||||||||||||||||||||
Year Ended 6/30/18 | — | $ | 9.23 | (0.12 | )% | 0.58 | % | 2.37 | % | 0.62 | % | $ | 25,438 | 110 | % | ||||||||||||||||||||
Year Ended 6/30/17 | — | $ | 9.55 | 1.19 | % | 0.58 | % | 2.63 | % | 0.91 | % | $ | 6,698 | 210 | % | ||||||||||||||||||||
Year Ended 6/30/16 | 0.01 | $ | 9.81 | 3.60 | %(d) | 0.58 | % | 3.25 | % | 1.59 | % | $ | 2,456 | 423 | % | ||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||
Year Ended 6/30/20 | — | $ | 9.94 | 7.92 | % | 0.60 | % | 2.28 | % | 0.62 | % | $ | 33,455 | 74 | % | ||||||||||||||||||||
Year Ended 6/30/19 | — | $ | 9.47 | 5.99 | % | 0.60 | % | 2.63 | % | 0.63 | % | $ | 31,026 | 150 | % | ||||||||||||||||||||
Year Ended 6/30/18 | — | $ | 9.23 | (0.13 | )% | 0.59 | % | 2.43 | % | 0.59 | % | $ | 52,633 | 110 | % | ||||||||||||||||||||
Year Ended 6/30/17 | — | $ | 9.55 | 1.17 | % | 0.60 | % | 2.61 | % | 0.62 | % | $ | 76,263 | 210 | % | ||||||||||||||||||||
Year Ended 6/30/16 | 0.01 | $ | 9.81 | 3.59 | %(d) | 0.60 | % | 3.29 | % | 0.61 | % | $ | 78,705 | 423 | % |
See notes to financial statements.
171
Victory Portfolios | Notes to Financial Statements June 30, 2020 |
1. Organization:
Victory Portfolios (the "Trust") was organized on December 6, 1995 as a Delaware statutory trust as a successor to a company named "The Victory Portfolios," which was organized as a Massachusetts business trust on February 5, 1986. The Trust is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end investment company. The Trust is comprised of 42 funds and is authorized to issue an unlimited number of shares, which are units of beneficial interest with a par value of $0.001 per share. Each Fund is classified as diversified under the 1940 Act.
The accompanying financial statements are those of the following 12 Funds (collectively, the "Funds" and individually, a "Fund"):
Funds (Legal Name) | Funds (Short Name) | Investment Share Classes Offered | |||||||||
Victory Integrity Discovery Fund | Integrity Discovery Fund | Classes A, C, R and Y | |||||||||
Victory Integrity Mid-Cap Value Fund | Integrity Mid-Cap Value Fund | Classes A, C*, R6 and Y | |||||||||
Victory Integrity Small-Cap Value Fund | Integrity Small-Cap Value Fund | Classes A, C, R, R6 and Y | |||||||||
Victory Integrity Small/Mid-Cap Value Fund | Integrity Small/Mid-Cap Value Fund | Classes A, R6 and Y | |||||||||
Victory Munder Multi-Cap Fund | Munder Multi-Cap Fund | Classes A, C and Y | |||||||||
Victory S&P 500 Index Fund | S&P 500 Index Fund | Classes A, R and Y | |||||||||
Victory Munder Mid-Cap Core Growth Fund | Munder Mid-Cap Core Growth Fund | Classes A, C, R, R6 and Y | |||||||||
Victory Munder Small Cap Growth Fund | Munder Small Cap Growth Fund | Classes A, I and Y | |||||||||
Victory Trivalent Emerging Markets Small-Cap Fund | Trivalent Emerging Markets Small-Cap Fund | Classes A and Y | |||||||||
Victory Trivalent International Fund-Core Equity | Trivalent International Fund-Core Equity | Classes A, C, I, R6 and Y | |||||||||
Victory Trivalent International Small-Cap Fund | Trivalent International Small-Cap Fund | Classes A, C, I, R6 and Y | |||||||||
Victory INCORE Total Return Bond Fund | INCORE Total Return Bond Fund | Classes A, C, R6 and Y |
* Integrity Mid-Cap Value Fund Class C commenced operations on November 4, 2019.
Each class of shares of a Fund has substantially identical rights and privileges except with respect to sales charges, fees paid under distribution plans, expenses allocable exclusively to each class of shares, voting rights on matters solely affecting a single class of shares, and the exchange privilege of each class of shares.
Under the Trust's organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts with their vendors and others that provide for general indemnifications. The Funds' maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds. However, based on experience, the Funds expect that risk of loss to be remote.
2. Significant Accounting Policies:
The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. The policies are in conformity with generally accepted accounting principles in the United States of America ("GAAP"). The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
172
Victory Portfolios | Notes to Financial Statements — continued June 30, 2020 |
statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates.
The Funds follow the specialized accounting and reporting requirements under GAAP that are applicable to investment companies.
Investment Valuation:
The Funds record investments at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The valuation techniques described below maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. The inputs used for valuing the Funds' investments are summarized in the three broad levels listed below:
• Level 1 — quoted prices in active markets for identical securities
• Level 2 — other significant observable inputs (including quoted prices for similar securities or interest rates applicable to those securities, etc.)
• Level 3 — significant unobservable inputs (including the Funds' own assumptions in determining the fair value of investments)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The inputs or methodologies used for valuation techniques are not necessarily an indication of the risk associated with entering into those investments.
Portfolio securities listed or traded on securities exchanges, including exchange-traded funds ("ETFs"), American Depositary Receipts ("ADRs") and Rights, are valued at the closing price on the exchange or system where the security is principally traded, if available, or at the Nasdaq Official Closing Price. If there have been no sales for that day on the exchange or system, then a security is valued at the last available bid quotation on the exchange or system where the security is principally traded. In each of these situations, valuations are typically categorized as Level 1 in the fair value hierarchy.
Investments in open-end investment companies are valued at net asset value. These valuations are typically categorized as Level 1 in the fair value hierarchy.
Futures contracts are valued at the settlement price established each day by the board of trade or an exchange on which they are traded. These valuations are typically categorized as Level 1 in the fair value hierarchy. Swap agreements are valued at the mean between the current bid and ask prices. To the extent this model is utilized, these valuations are considered as Level 2 in the fair value hierarchy.
Debt securities of United States ("U.S.") issuers (other than short-term investments maturing in 60 days or less), including corporate and municipal securities, are valued on the basis of bid valuations provided by dealers or an independent pricing service approved by the Trust's Board of Trustees (the "Board"). Short-term investments maturing in 60 days or less may be valued at amortized cost, which approximates market value. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, on a constant basis to the maturity of the security. In each of these situations, valuations are typically categorized as Level 2 in the fair value hierarchy.
Investments for which there are no such quotations, or for which quotations do not appear reliable, are valued at fair value in accordance with procedures established by and under the general supervision and responsibility of the Board. These valuations are typically categorized as Level 2 or Level 3 in the fair value hierarchy, based on the observability of inputs used to determine the fair value.
In accordance with procedures adopted by the Board, fair value pricing may be used if events materially affecting the value of foreign securities occur between the time the exchange on which they are traded closes and the time the Funds' net asset values are calculated. The Trivalent Emerging Markets Small-Cap Fund, Trivalent International Fund-Core Equity and Trivalent International Small-Cap Fund use a
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systematic valuation model, provided daily by an independent third party to fair value their international equity securities. These valuations are considered as Level 2 in the fair value hierarchy.
A summary of the valuations as of June 30, 2020, based upon the three levels defined above, is included in the table below while the breakdown, by category, of investments is disclosed on the Schedules of Portfolio Investments (amounts in thousands):
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Integrity Discovery Fund | |||||||||||||||||||
Common Stocks | $ | 60,598 | $ | — | $ | — | $ | 60,598 | |||||||||||
Collateral for Securities Loaned | 7,714 | — | — | 7,714 | |||||||||||||||
Total | $ | 68,312 | $ | — | $ | — | $ | 68,312 | |||||||||||
Integrity Mid-Cap Value Fund | |||||||||||||||||||
Common Stocks | $ | 201,314 | $ | — | $ | — | $ | 201,314 | |||||||||||
Collateral for Securities Loaned | 5,636 | — | — | 5,636 | |||||||||||||||
Total | $ | 206,950 | $ | — | $ | — | $ | 206,950 | |||||||||||
Integrity Small-Cap Value Fund | |||||||||||||||||||
Common Stocks | $ | 1,561,911 | $ | — | $ | — | $ | 1,561,911 | |||||||||||
Collateral for Securities Loaned | 97,237 | — | — | 97,237 | |||||||||||||||
Total | $ | 1,659,148 | $ | — | $ | — | $ | 1,659,148 | |||||||||||
Integrity Small/Mid-Cap Value Fund | |||||||||||||||||||
Common Stocks | $ | 115,172 | $ | — | $ | — | $ | 115,172 | |||||||||||
Exchange-Traded Funds | 369 | — | — | 369 | |||||||||||||||
Collateral for Securities Loaned | 3,035 | — | — | 3,035 | |||||||||||||||
Total | $ | 118,576 | $ | — | $ | — | $ | 118,576 | |||||||||||
Munder Multi-Cap Fund | |||||||||||||||||||
Common Stocks | $ | 341,029 | $ | — | $ | — | $ | 341,029 | |||||||||||
Rights | 8 | — | — | 8 | |||||||||||||||
Exchange-Traded Funds | 5,078 | — | — | 5,078 | |||||||||||||||
Collateral for Securities Loaned | 2,900 | — | — | 2,900 | |||||||||||||||
Total | $ | 349,015 | $ | — | $ | — | $ | 349,015 | |||||||||||
S&P 500 Index Fund | |||||||||||||||||||
Common Stocks | $ | 211,671 | $ | — | $ | — | $ | 211,671 | |||||||||||
Rights | 1 | — | — | 1 | |||||||||||||||
Collateral for Securities Loaned | 2,191 | — | — | 2,191 | |||||||||||||||
Total | $ | 213,863 | $ | — | $ | — | $ | 213,863 | |||||||||||
Other Financial Investments^: | |||||||||||||||||||
Liabilities: | |||||||||||||||||||
Futures Contracts | $ | (2 | ) | $ | — | $ | — | $ | (2 | ) | |||||||||
Total | $ | (2 | ) | $ | — | $ | — | $ | (2 | ) | |||||||||
Munder Mid-Cap Core Growth Fund | |||||||||||||||||||
Common Stocks | $ | 568,606 | $ | — | $ | — | $ | 568,606 | |||||||||||
Exchange-Traded Funds | 15,559 | — | — | 15,559 | |||||||||||||||
Collateral for Securities Loaned | 34,566 | — | — | 34,566 | |||||||||||||||
Total | $ | 618,731 | $ | — | $ | — | $ | 618,731 |
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Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Munder Small Cap Growth Fund | |||||||||||||||||||
Common Stocks | $ | 10,754 | $ | — | $ | — | (a) | $ | 10,754 | ||||||||||
Warrants | 1 | — | — | 1 | |||||||||||||||
Collateral for Securities Loaned | 1,256 | — | — | 1,256 | |||||||||||||||
Total | $ | 12,011 | $ | — | $ | — | $ | 12,011 | |||||||||||
Trivalent Emerging Markets Small-Cap Fund | |||||||||||||||||||
Common Stocks | $ | 893 | $ | 7,225 | $ | 23 | $ | 8,141 | |||||||||||
Preferred Stocks | 26 | — | — | 26 | |||||||||||||||
Rights | — | — | — | (a) | — | ||||||||||||||
Exchange-Traded Funds | 193 | — | — | 193 | |||||||||||||||
Collateral for Securities Loaned | 248 | — | — | 248 | |||||||||||||||
Total | $ | 1,360 | $ | 7,225 | $ | 23 | $ | 8,608 | |||||||||||
Trivalent International Fund-Core Equity | |||||||||||||||||||
Common Stocks | $ | 13,732 | $ | 114,271 | $ | — | $ | 128,003 | |||||||||||
Preferred Stocks | 701 | 1,123 | — | 1,824 | |||||||||||||||
Rights | 37 | — | — | 37 | |||||||||||||||
Exchange-Traded Funds | 1,862 | — | — | 1,862 | |||||||||||||||
Collateral for Securities Loaned | 2,776 | — | — | 2,776 | |||||||||||||||
Total | $ | 19,108 | $ | 115,394 | $ | — | $ | 134,502 | |||||||||||
Trivalent International Small-Cap Fund | |||||||||||||||||||
Common Stocks | $ | 154,741 | $ | 1,647,047 | $ | 2,399 | $ | 1,804,187 | |||||||||||
Exchange-Traded Funds | 18,597 | — | — | 18,597 | |||||||||||||||
Collateral for Securities Loaned | 57,004 | — | — | 57,004 | |||||||||||||||
Total | $ | 230,342 | $ | 1,647,047 | $ | 2,399 | $ | 1,879,788 | |||||||||||
INCORE Total Return Bond Fund | |||||||||||||||||||
Asset-Backed Securities | $ | — | $ | 1,892 | $ | — | $ | 1,892 | |||||||||||
Collateralized Mortgage Obligations | — | 2,428 | — | 2,428 | |||||||||||||||
Corporate Bonds | — | 31,638 | — | 31,638 | |||||||||||||||
Residential Mortgage-Backed Securities | — | 221 | — | 221 | |||||||||||||||
Yankee Dollars | — | 6,067 | — | 6,067 | |||||||||||||||
U.S. Government Mortgage-Backed Agencies | — | 21,264 | — | 21,264 | |||||||||||||||
U.S. Treasury Obligations | — | 103 | — | 103 | |||||||||||||||
Collateral for Securities Loaned | 1,982 | — | — | 1,982 | |||||||||||||||
Total | $ | 1,982 | $ | 63,613 | $ | — | $ | 65,595 | |||||||||||
Other Financial Investments^: | |||||||||||||||||||
Assets: | |||||||||||||||||||
Futures Contracts | $ | 13 | $ | — | $ | — | $ | 13 | |||||||||||
Liabilities: | |||||||||||||||||||
Futures Contracts | (20 | ) | — | — | (20 | ) | |||||||||||||
Total | $ | (7 | ) | $ | — | $ | — | $ | (7 | ) |
^ Other Financial investments include any derivative instruments not reflected on the Schedules of Portfolio Investments as Investment Securities, such as futures contracts.
These instruments are generally recorded in the financial statements as the unrealized gain or loss on the investment.
(a) Amount is less than $1 thousand.
For the year ended June 30, 2020, there were no transfers in or out of the Level 3 fair value hierarchy.
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Victory Portfolios | Notes to Financial Statements — continued June 30, 2020 |
Securities Purchased on a When-Issued Basis:
The Funds may purchase securities on a when-issued basis. When-issued securities are securities purchased for delivery beyond normal settlement periods at a stated price and/or yield, thereby involving the risk that the price and/or yield obtained may be more or less than those available in the market when delivery takes place. At the time a Fund makes the commitment to purchase a security on a when-issued basis, the Fund records the transaction and reflects the value of the security in determining net asset value. No interest accrues to the Fund until the transaction settles and payment takes place. Normally, the settlement date occurs within one month of the purchase. A segregated account is established and the Fund maintains cash and/or marketable securities at least equal in value to commitments for when-issued securities. If a Fund owns when-issued securities, these values are included in Payable for investments purchased on the accompanying Statements of Assets and Liabilities and the segregated assets are identified on the Schedules of Portfolio Investments.
Real Estate Investment Trusts ("REITs"):
The Funds may invest in REITs, which report information on the source of their distributions annually. REITs are pooled investment vehicles that invest primarily in income-producing real estate or real-estate related loans or interests (such as mortgages). Certain distributions received from REITs during the year are recorded as realized gains or return of capital as estimated by the Funds or when such information becomes known.
Mortgage-Related and Asset-Backed Securities:
The values of some mortgage-related or asset-backed securities may be particularly sensitive to changes in prevailing interest rates. Early repayment of principal on some mortgage-related securities may expose a Fund to a lower rate of return upon reinvestment of principal. The values of mortgage- and asset-backed securities depend in part on the credit quality and adequacy of the underlying assets or collateral and may fluctuate in response to the market's perception of these factors as well as current and future repayment rates. Some mortgage-backed securities are backed by the full faith and credit of the U.S. government (e.g., mortgage-backed securities issued by the Government National Mortgage Association, commonly known as "Ginnie Mae"), while other mortgage-backed securities (e.g., mortgage-backed securities issued by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, commonly known as "Fannie Mae" and "Freddie Mac," respectively), are backed only by the credit of the government entity issuing them. In addition, some mortgage-backed securities are issued by private entities and, as such, are not guaranteed by the U.S. government or any agency or instrumentality of the U.S. government.
Investment Companies:
Exchange-Traded Funds:
The Funds may invest in ETFs, the shares of which are bought and sold on a securities exchange. An ETF trades like common stock and represents a fixed portfolio of securities designed to track the performance and dividend yield of a particular domestic or foreign market index. A Fund may purchase shares of an ETF to temporarily gain exposure to a portion of the U.S. or a foreign market while awaiting purchase of underlying securities. The risks of owning an ETF generally reflect the risks of owning the underlying securities they are designed to track, although the lack of liquidity of an ETF could result in it being more volatile. Additionally, ETFs have fees and expenses that reduce their value.
Open-End Funds:
The Funds may invest in portfolios of open-end investment companies. These investment companies value securities in their portfolios for which market quotations are readily available at their market values (generally the last reported sale price) and all other securities and assets at their fair value by the methods established by the board of directors of the underlying funds.
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Victory Portfolios | Notes to Financial Statements — continued June 30, 2020 |
Derivative Instruments:
Foreign Exchange Currency Contracts:
The Trivalent Emerging Markets Small-Cap Fund, Trivalent International Fund-Core Equity and Trivalent International Small-Cap Fund may enter into foreign exchange currency contracts to convert U.S. dollars to and from various foreign currencies. A foreign exchange currency contract is an obligation by a Fund to purchase or sell a specific currency at a future date at a price (in U.S. dollars) set at the time of the contract. The Funds do not engage in "cross-currency" foreign exchange contracts (i.e., contracts to purchase or sell one foreign currency in exchange for another foreign currency). The Funds' foreign exchange currency contracts might be considered spot contracts (typically a contract of one week or less) or forward contracts (typically a contract term over one week). A spot contract is entered into for purposes of hedging against foreign currency fluctuations relating to a specific portfolio transaction, such as the delay between a security transaction trade date and settlement date. Forward contracts are entered into for purposes of hedging portfolio holdings or concentrations of such holdings. The Trivalent Emerging Markets Small-Cap Fund, Trivalent International Fund-Core Equity and Trivalent International Small-Cap Fund enter into foreign exchange currency contracts solely for spot or forward hedging purposes, and not for speculative purposes (i.e., the Funds do not enter into such contracts solely for the purpose of earning foreign currency gains). Each foreign exchange currency contract is adjusted daily by the prevailing spot or forward rate of the underlying currency, and any appreciation or depreciation is recorded for financial statement purposes as unrealized until the contract settlement date, at which time the Fund records realized gains or losses equal to the difference between the value of a contract at the time it was opened and the value at the time it was closed. A Fund could be exposed to risk if a counterparty is unable to meet the terms of a foreign exchange currency contract or if the value of the foreign currency changes unfavorably. In addition, the use of foreign exchange currency contracts does not eliminate fluctuations in the underlying prices of the securities. As of June 30, 2020, the Funds had no open forward foreign exchange currency contracts.
Futures Contracts:
The Funds may enter into contracts for the future delivery of securities or foreign currencies and futures contracts based on a specific security, class of securities, foreign currency or an index, and purchase or sell options on any such futures contracts. A futures contract on a securities index is an agreement obligating either party to pay, and entitling the other party to receive, while the contract is outstanding, cash payments based on the level of a specified securities index. No physical delivery of the underlying asset is made. A Fund may enter into futures contracts in an effort to hedge against market risks. The acquisition of put and call options on futures contracts will give the Fund the right (but not the obligation), for a specified price, to sell or to purchase the underlying futures contract, upon exercise of the option, at any time during the option period. Futures transactions involve brokerage costs and require the Fund to segregate assets to cover contracts that would require it to purchase securities or currencies. A good faith margin deposit, known as initial margin, of cash or government securities with a broker or custodian is required to initiate and maintain open positions in futures contracts. Subsequent payments, known as variation margin, are made or received by the Fund based on the change in the market value of the position and are recorded as unrealized appreciation or depreciation until the contract is closed out, at which time the gain or loss is realized. A Fund may lose the expected benefit of futures transactions if interest rates, exchange rates or securities prices change in an unanticipated manner. Such unanticipated changes may also result in lower overall performance than if the Fund had not entered into any futures transactions. In addition, the value of a Fund's futures positions may not prove to be perfectly or even highly correlated with the value of its portfolio securities or foreign currencies, limiting a Fund's ability to hedge effectively against interest rate, exchange rate and/or market risk and giving rise to additional risks. There is no assurance of liquidity in the secondary market for purposes of closing out futures positions. The collateral held by the Funds is presented on the Statements of Assets and Liabilities under Deposits with brokers for futures contracts.
As of June 30, 2020, the S&P 500 Index Fund and INCORE Total Return Bond Fund entered into futures contracts primarily for the strategy of hedging or other purposes, including but not limited to, providing liquidity and equitizing cash.
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Credit Derivatives:
The INCORE Total Return Bond Fund may enter into credit derivatives, including centrally cleared credit default swaps on individual obligations or credit indices. The Fund may use these investments (i) as alternatives to direct long or short investment in a particular security or securities, (ii) to adjust the Fund's asset allocation or risk exposure, or (iii) for hedging purposes. The use by the Fund of centrally cleared credit default swaps may have the effect of creating a short position in a security. Credit derivatives can create investment leverage and may create additional investment risks that may subject the Fund to greater volatility than investments in more traditional securities, as described in the Fund's Statement of Additional Information.
Centrally cleared credit default swap ("CDS") agreements on credit indices involve one party making a stream of payments (referred to as the buyer of protection) to another party (the seller of protection) in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be representative of a specific sector of the credit market as a whole. These indices are made up of reference credits that are judged by a poll of dealers to be the most liquid entities in the CDS.
The counterparty risk for cleared swap agreements is generally lower than uncleared over-the-counter swap agreements because generally a clearing organization becomes substituted for each counterparty to a centrally cleared swap agreement and, in effect, guarantees each party's performance under the contract as each party to a trade looks only to the clearing organization for performance of financial obligations. However, there can be no assurance that the clearing organization, or its members, will satisfy its obligations to the Fund.
The Fund may enter into CDS agreements either as a buyer or seller. The Fund may buy protection under a CDS to attempt to mitigate the risk of default or credit quality deterioration in one or more individual holdings or in a segment of the fixed income securities market. The Fund may sell protection under a CDS in an attempt to gain exposure to an underlying issuer's credit quality characteristics without investing directly in that issuer.
For swaps entered with an individual counterparty, the Fund bears the risk of loss of the uncollateralized amount expected to be received under a CDS agreement in the event of the default or bankruptcy of the counterparty. CDS agreements are generally valued at a price at which the counterparty to such agreement would terminate the agreement. The Fund may also enter into cleared swaps.
Upon entering into a cleared CDS, the Fund may be required to deposit with the broker an amount of cash or cash equivalents in the range of approximately 3% to 6% of the notional amount for CDS on high yield debt issuers (this amount is subject to change by the clearing organization that clears the trade). This amount, known as "initial margin," is in the nature of a performance bond or good faith deposit on the CDS and is returned to a Fund upon termination of the CDS, assuming all contractual obligations have been satisfied. Subsequent payments, known as "variation margin," to and from the broker will be made daily as the price of the CDS fluctuates, making the long and short positions in the CDS contract more or less valuable, a process known as "marking-to-market". The premium (discount) payments are built into the daily price of the CDS and thus are amortized through the variation margin. The variation margin payment also includes the daily portion of the periodic payment stream.
The maximum potential amount of future payments (undiscounted) that the Fund as a seller of protection could be required to make under a CDS agreement equals the notional amount of the agreement. Notional amounts of each individual CDS agreement outstanding as of period end for which the Fund is the seller of protection are disclosed on the Schedule of Portfolio Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, periodic interest payments, or net amounts received from the settlement of buy protection CDS agreements entered into by the Fund for the same referenced entity or entities. The collateral held by the Funds is presented on the Statements of Assets and Liabilities under Deposits with brokers for centrally cleared swap agreements.
The INCORE Total Return Bond Fund entered into centrally cleared CDS agreements primarily for the strategy of asset allocation and risk exposure management during the year. As of June 30, 2020, the INCORE Total Return Bond Fund held no swap agreements.
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Offsetting of Financial Assets and Derivatives Assets:
The Funds are subject to various Master Netting Arrangements, which govern the terms of certain transactions with select counterparties. The Master Netting Arrangements allow the Funds to close out and net total exposure to a counterparty in the event of a default with respect to all the transactions governed under a single agreement with a counterparty. The Master Netting Arrangements also specify collateral posting arrangements at pre-arranged exposure levels. Under the Master Netting Arrangements, collateral is routinely transferred if the total net exposure to certain transactions (net of existing collateral already in place) governed under the relevant Master Netting Arrangement with a counterparty in a given account exceeds a specified threshold depending on the counterparty and the type of Master Netting Arrangement.
The table below, as of June 30, 2020 (amounts in thousands), discloses both gross information and net information about instruments and transactions eligible for offset on the Statements of Assets and Liabilities and instruments and transactions that are subject to an agreement similar to a master netting agreement as well as amounts related to collateral held at clearing brokers and counterparties.
Gross Amounts of Recognized Assets | Gross Amounts Available for Offset | Net Amounts Presented in the Statements of Assets and Liabilities | Cash Collateral Received | Net Amount | |||||||||||||||||||
S&P 500 Index Fund | |||||||||||||||||||||||
Futures — Goldman Sachs & Co | $ | 26 | $ | — | $ | 26 | $ | — | $ | 26 | |||||||||||||
INCORE Total Return Bond Fund | |||||||||||||||||||||||
Futures — Goldman Sachs & Co | 2 | — | 2 | — | 2 | ||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Available for Offset | Net Amounts Presented in the Statements of Assets and Liabilities | Cash Collateral Pledged* | Net Amount | |||||||||||||||||||
INCORE Total Return Bond Fund | |||||||||||||||||||||||
Futures — Goldman Sachs & Co | $ | 1 | $ | — | $ | 1 | $ | (1 | ) | $ | — |
* Cash collateral pledged may be in excess of the amounts shown in the table. The total cash collateral pledged by each Fund is disclosed in the Statements of Assets and Liabilities.
Summary of Derivative Instruments:
The following table summarizes the fair values of derivative instruments on the Statements of Assets and Liabilities, categorized by risk exposure, as of June 30, 2020 (amounts in thousands):
Assets | Liabilities | ||||||||||
Variation Margin Receivable on Open Futures Contracts* | Variation Margin Payable on Open Futures Contracts* | ||||||||||
Equity Risk Exposure: | |||||||||||
S&P Index 500 Fund | $ | — | $ | 2 | |||||||
Interest Rate Risk Exposure: | |||||||||||
INCORE Total Return Bond Fund | 13 | 20 |
* Includes cumulative appreciation/depreciation of futures contracts as reported on the Schedules of Portfolio Investments. Only current day's variation margin for futures contracts are reported within the Statements of Assets and Liabilities.
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The following table presents the effect of derivative instruments on the Statements of Operations, categorized by risk exposure, for the year ended June 30, 2020 (amounts in thousands):
Net Realized Gains (Losses) on Derivatives Recognized as a Result from Operations | Net Change in Unrealized Appreciation/Depreciation on Derivatives Recognized as a Result of Operations | ||||||||||||||||||
Net Realized Gains (Losses) from Futures Contracts | Net Realized Gains (Losses) from Swap Agreements | Net Change in Unrealized Appreciation/ Depreciation on Futures Contracts | Net Change in Unrealized Appreciation/ Depreciation on Swap Agreements | ||||||||||||||||
Equity Risk Exposure: | |||||||||||||||||||
S&P 500 Index Fund | $ | 177 | $ | — | $ | (32 | ) | $ | — | ||||||||||
Credit Risk Exposure: | |||||||||||||||||||
INCORE Total Return Bond Fund | — | (60 | ) | — | (84 | ) | |||||||||||||
Interest Rate Risk Exposure: | |||||||||||||||||||
INCORE Total Return Bond Fund | 644 | — | (127 | ) | — |
All open derivative positions at year end are reflected on each respective Fund's Schedule of Portfolio Investments. The underlying face value of open derivative positions relative to the S&P 500 Index Fund's net assets at year end is generally representative of the notional amount of open positions to net assets throughout the year. The volume associated with derivative positions in the Total Return Bond Fund was 85% and 3% for futures contracts and swap agreements, respectively, based on average monthly notional amounts in comparison to net assets during the year.
Investment Transactions and Related Income:
Changes in holdings of investments are accounted for no later than one business day following the trade date. For financial reporting purposes, however, investment transactions are accounted for on trade date on the last business day of the reporting period. Interest income is determined on the basis of coupon interest accrued using the effective interest method which adjusts, where applicable, the amortization of premiums or accretion of discounts. Dividend income is recorded on the ex-dividend date. Gains or losses realized on sales of securities are recorded on the identified cost basis.
Withholding taxes on interest, dividends and gains as a result of certain investments in ADRs by the Funds have been provided for in accordance with each investment's applicable country's tax rules and rates.
Securities Lending:
The Trust has entered into a Master Securities Lending Agreement ("MSLA") with Citibank, N.A. ("Citibank" or the "Agent"). Under the terms of the MSLA, the Funds may lend securities to certain broker-dealers and banks in exchange for collateral in the amount of at least 102% of the value of U.S. securities loaned or at least 105% of the value of non-U.S. securities loaned, marked-to-market daily. Any collateral shortfalls associated with increases in the valuation of the securities loaned are adjusted the next business day. The collateral can be received in the form of cash collateral and/or non-cash collateral. Non-cash collateral can include U.S. Government Securities, letters of credit and certificates of deposit. The cash collateral is invested in short-term instruments or cash equivalents, primarily open-end investment companies, as noted on the Funds' Schedules of Portfolio Investments. The Trust does not have effective control of the non-cash collateral and therefore it is not disclosed on the Funds' Schedules of Portfolio Investments. During the time portfolio securities are on loan, the borrower will pay the Funds any dividends or interest paid on such securities plus any fee negotiated between the parties to the lending agreement. The Funds also earn a return from the collateral. The Funds pay the Agent various fees in connection with the investment of cash collateral and fees based on the investment
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income received from securities lending activities. Securities lending income (net of these fees) is disclosed on the Statements of Operations. Although risk is mitigated by the collateral, the Funds could experience a delay in recovering their securities and possible loss of income or value if the borrower fails to return them.
Securities lending transactions are entered into by a Fund under the MSLA, which permits the Fund, under certain circumstances such as an event of default, to offset amounts payable by the Fund to the same counterparty against amounts receivable from the counterparty to create a net payment due to or from the Fund.
The following table (amounts in thousands) is a summary of the Funds' securities lending transactions which are subject to offset under the MSLA as of June 30, 2020. These transactions are accounted for as secured borrowings with an overnight and continuous contractual maturity for cash collateral, and greater than overnight and continuous contractual maturity for non-cash collateral.
Gross Amount of Recognized Assets (Value of | Value of Cash | Value of Non-cash Collateral Received by Maturity | |||||||||||||||||||||||||
Securities on Loan)* | Collateral Received** | <90 Days | Between 30 & 90 days | >90 Days | Net Amount | ||||||||||||||||||||||
Integrity Discovery Fund | $ | 7,492 | $ | 7,492 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Integrity Mid-Cap Value Fund | 5,482 | 5,482 | — | — | — | — | |||||||||||||||||||||
Integrity Small-Cap Value Fund | 95,285 | 95,285 | — | — | — | — | |||||||||||||||||||||
Integrity Small/Mid-Cap Value Fund | 2,966 | 2,966 | — | — | — | — | |||||||||||||||||||||
Munder Multi-Cap Fund | 2,860 | 2,860 | — | — | — | — | |||||||||||||||||||||
S&P 500 Index Fund | 2,165 | 2,165 | — | — | — | — | |||||||||||||||||||||
Munder Mid-Cap Core Growth Fund | 34,030 | 34,030 | — | — | — | — | |||||||||||||||||||||
Munder Small Cap Growth Fund | 1,231 | 1,231 | — | — | — | — | |||||||||||||||||||||
Trivalent Emerging Markets Small-Cap Fund | 239 | 239 | — | — | — | — | |||||||||||||||||||||
Trivalent International Fund-Core Equity | 2,626 | 2,626 | — | — | — | — | |||||||||||||||||||||
Trivalent International Small-Cap Fund | 54,859 | 54,859 | — | — | — | — | |||||||||||||||||||||
INCORE Total Return Bond Fund | 1,924 | 1,924 | — | — | — | — |
* The value of securities on loan listed in the table is in excess of the value of securities on loan as shown on the Statements of Assets and Liabilities, as amounts include securities sold but not yet settled that are on loan as of year-end.
** Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Statements of Assets and Liabilities.
Foreign Currency Translations:
The accounting records of the Funds are maintained in U.S. dollars. Investment securities and other assets and liabilities of a Fund denominated in a foreign currency are translated into U.S. dollars at current exchange rates. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars at the exchange rates on the date of the transactions. The Funds do not isolate the portion of the results of operations resulting from changes in foreign exchange rates on
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investments from fluctuations arising from changes in market prices of securities held. Such fluctuations are disclosed as Net change in unrealized appreciation/depreciation on investment securities and foreign currency translations on the Statements of Operations. Any realized gains or losses from these fluctuations are disclosed as Net realized gains (losses) from investment securities and foreign currency translations on the Statements of Operations.
Foreign Taxes:
The Funds may be subject to foreign taxes related to foreign income received (a portion of which may be reclaimable), capital gains on the sale of securities, and certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable regulations and rates that exist in the foreign jurisdictions in which the Funds invest.
Distributions to Shareholders:
Each of the Funds (except for INCORE Total Return Bond Fund and S&P 500 Index Fund) intend to declare and distribute net investment income at least annually, if any. INCORE Total Return Bond Fund declares and pays dividends from net investment income monthly, if any. S&P 500 Index Fund declares and pays dividends from net investment income quarterly, if any. Distributable net realized gains, if any, are declared and distributed at least annually from each Fund.
The amounts of dividends from net investment income and distributions from net realized gains (collectively, distributions to shareholders) are determined in accordance with federal income tax regulations, which may differ from GAAP. To the extent these "book/tax" differences are permanent in nature (e.g., net operating loss and distribution reclassification), such amounts are reclassified within the components of net assets based on their federal tax-basis treatment; temporary differences (e.g., wash sales) do not require reclassification. To the extent dividends and distributions exceed net investment income and net realized gains for tax purposes, they are reported as distributions of capital. Net investment losses incurred by a Fund may be reclassified as an offset to capital on the accompanying Statements of Assets and Liabilities.
As of June 30, 2020, on the Statements of Assets and Liabilities, as a result of permanent book-to-tax differences, reclassification adjustments were as follows:
Total Distributable Earnings/(Loss) | Capital | ||||||||||
Integrity Discovery Fund | $ | 17 | $ | (17 | ) | ||||||
S&P 500 Index Fund | (2,225 | ) | 2,225 | ||||||||
Munder Mid-Cap Core Growth Fund | (37,015 | ) | 37,015 | ||||||||
INCORE Total Return Bond Fund | (26 | ) | 26 |
Mortgage Dollar Rolls:
The INCORE Total Return Bond Fund may enter into mortgage dollar roll transactions in which the Fund sells a mortgage-backed security to a counterparty to buy back similar, but not identical, securities on a specific future date at a predetermined price. Mortgage dollar rolls may be renewed by a new sale and repurchased with a cash settlement at each renewal without physical delivery of the securities. Certain risks may arise upon entering into mortgage dollar rolls from the potential inability of counterparties to meet the terms of their commitments. Additionally, the value of such securities may change adversely before the Fund is able to repurchase them. Mortgage dollar rolls are treated as financing transactions unless the sale and repurchase are determined to involve securities that are not substantially the same. Therefore, any gain or loss is considered unrealized until the roll reaches ultimate disposition or the sale and repurchase are determined to involve securities that are not substantially the same. Income is generated as consideration for entering into these transactions and is included in mortgage dollar roll income on the Fund's Statement of Operations. For the year ended June 30, 2020, there were no mortgage dollar roll transactions.
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Victory Portfolios | Notes to Financial Statements — continued June 30, 2020 |
Federal Income Taxes:
It is the policy of each Fund to continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies, as defined in applicable sections of the Internal Revenue Code, and to make distributions of net investment income and net realized gains sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes is required in the financial statements. The Funds have a tax year end of June 30.
Management of the Funds has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the last four tax years, which includes the current fiscal tax year end). Management believes that there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken.
Allocations:
Expenses directly attributable to a Fund are charged to the Fund, while expenses which are attributable to more than one fund in the Trust, or jointly with an affiliated trust, are allocated among the respective funds in the Trust and/or affiliated trust based upon net assets or another appropriate basis.
Income, expenses (other than class-specific expenses such as transfer agent fees, state registration fees, printing fees and 12b-1 fees), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets on the date income is earned or expenses and realized and unrealized gains and losses are incurred.
3. Purchases and Sales of Securities:
Purchases and sales of securities (excluding securities maturing less than one year from acquisition) for the year ended June 30, 2020 were as follows (amounts in thousands):
Purchases (excluding U.S. Government Securities) | Sales (excluding U.S. Government Securities) | Purchases of U.S. Government Securities | Sales of U.S. Government Securities | ||||||||||||||||
Integrity Discovery Fund | $ | 40,162 | $ | 80,092 | $ | — | $ | — | |||||||||||
Integrity Mid-Cap Value Fund | 315,771 | 160,737 | — | — | |||||||||||||||
Integrity Small-Cap Value Fund | 1,633,075 | 1,831,101 | — | — | |||||||||||||||
Integrity Small/Mid-Cap Value Fund | 100,701 | 90,215 | — | — | |||||||||||||||
Munder Multi-Cap Fund | 363,736 | 405,560 | — | — | |||||||||||||||
S&P 500 Index Fund | 9,062 | 41,208 | — | — | |||||||||||||||
Munder Mid-Cap Core Growth Fund | 834,207 | 1,690,748 | — | — | |||||||||||||||
Munder Small Cap Growth Fund | 5,476 | 5,309 | — | — | |||||||||||||||
Trivalent Emerging Markets Small-Cap Fund | 5,123 | 5,497 | — | — | |||||||||||||||
Trivalent International Fund-Core Equity | 163,383 | 47,362 | — | — | |||||||||||||||
Trivalent International Small-Cap Fund | 997,852 | 924,124 | — | — | |||||||||||||||
INCORE Total Return Bond Fund | 26,819 | 13,565 | 20,750 | 33,455 |
4. Fees and Transactions with Affiliates and Related Parties:
Investment advisory services are provided to the Funds by Victory Capital Management Inc. ("VCM" or the "Adviser"), a New York corporation registered as an investment adviser with the Securities and Exchange Commission ("SEC"). The Adviser is a wholly owned indirect subsidiary of Victory Capital Holdings, Inc., a publicly traded Delaware corporation and a wholly owned direct subsidiary of Victory Capital Operating, LLC.
Under the terms of the Investment Advisory Agreement, the Adviser is entitled to receive fees based on a percentage of the average daily net assets of each Fund. The rates at which the Adviser is paid by each Fund are included in the table below. The Adviser may use its resources to assist with the Funds' distribution and marketing expenses.
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Flat Rate | |||||||
Integrity Discovery Fund | 1.00 | % | |||||
Munder Small Cap Growth Fund | 0.85 | % | |||||
Trivalent Emerging Markets Small-Cap Fund | 1.10 | % | |||||
INCORE Total Return Bond Fund | 0.40 | % | |||||
Tier Rate | |||||||
S&P 500 Index Fund | |||||||
Up to $250 million | 0.20 | % | |||||
$250 Million — $500 million | 0.12 | % | |||||
Over $500 million | 0.07 | % | |||||
Integrity Small-Cap Value Fund | |||||||
Up to $300 million | 0.90 | % | |||||
Over $300 million | 0.85 | % | |||||
Integrity Small/Mid-Cap Value | |||||||
Up to $300 million | 0.80 | % | |||||
Over $300 million | 0.75 | % | |||||
Integrity Mid-Cap Value | |||||||
Up to $500 million | 0.75 | % | |||||
Over $500 million | 0.70 | % | |||||
Munder Multi-Cap Fund | |||||||
Up to $1 billion | 0.75 | % | |||||
$1 billion — $2 billion | 0.72 | % | |||||
Over $2 billion | 0.70 | % | |||||
Trivalent International Small-Cap Fund | |||||||
Up to $1 billion | 0.95 | % | |||||
Over $1 billion | 0.90 | % | |||||
Trivalent International Fund-Core Equity | |||||||
Up to $1 billion | 0.80 | % | |||||
Over $1 billion | 0.75 | % | |||||
Munder Mid-Cap Core Growth Fund | |||||||
Up to $6 billion | 0.75 | % | |||||
$6 billion — $8 billion | 0.70 | % | |||||
Over $8 billion | 0.65 | % |
VCM also serves as the Funds' administrator and fund accountant. Under an Administration and Fund Accounting Agreement, VCM is paid for its services an annual fee at a rate of 0.08% of the first $15 billion in average daily net assets of the Trust, Victory Variable Insurance Funds and Victory Portfolios II (collectively, the "Victory Funds Complex"), 0.05% of the average daily net assets above $15 billion to $30 billion of the Victory Funds Complex and 0.04% of the average daily net assets over $30 billion of the Victory Funds Complex.
Citi Fund Services Ohio, Inc. ("Citi"), an affiliate of Citibank, acts as sub-administrator and sub-fund accountant to the Funds pursuant to a Sub-Administration and Sub-Fund Accounting Services Agreement between VCM and Citi. VCM pays Citi a fee for providing these services. The Trust reimburses VCM and Citi for all of their reasonable out-of-pocket expenses incurred in providing these services and certain other expenses specifically allocated to the Funds under the Fund Administration, Servicing, and Accounting Agreement.
Citibank acts as the custodian of the Funds' assets pursuant to the Global Custodial Services Agreement (the "Custody Agreement"). Citibank's responsibilities include safeguarding and controlling the Funds' cash and securities, handling the receipt and delivery of securities, and collecting interest and dividends on the Funds' investments. Pursuant to the Custody Agreement, Citibank also maintains original entry
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Victory Portfolios | Notes to Financial Statements — continued June 30, 2020 |
documents and books of record and general ledgers; posts cash receipts and disbursements; and records purchases and sales based upon communications from the Adviser. Citibank may, with the approval of a Fund and at its own expense, open and maintain a sub-custody account or accounts on behalf of a Fund, provided that it shall remain liable for the performance of all of its duties under the Custody Agreement.
FIS Investor Services, LLC ("FIS") serves as the Funds' transfer agent. Under the Transfer Agent Agreement, the Trust pays FIS a fee for its services and reimburses FIS for all of their reasonable out-of-pocket expenses incurred in providing these services
The Chief Compliance Officer ("CCO") is an employee of the Adviser, which pays the compensation of the CCO and his support staff. The Trust has entered into an Agreement to provide compliance services with the Adviser, pursuant to which the Adviser furnishes its compliance personnel, including the services of the CCO, and other resources reasonably necessary to provide the Trust with compliance oversight services related to the design, administration and oversight of a compliance program for the Trust in accordance with Rule 38a-1 under the 1940 Act. The Funds in the Victory Funds Complex, in aggregate, compensate the Adviser for these services.
The Victory Funds Complex pays an annual retainer to each Independent Trustee, plus an additional annual retainer to the Chairman of the Board. The aggregate amount of the fees and expenses of the Independent Trustees are allocated amongst all the funds in the Victory Funds Complex and are presented on the Statements of Operations.
Sidley Austin LLP provides legal services to the Trust.
Victory Capital Services, Inc. (the "Distributor"), an affiliate of the Adviser, serves as distributor for the continuous offering of the shares of the Funds pursuant to a Distribution Agreement between the Distributor and the Trust. Effective June 30, 2020, the Distributor's name was changed from Victory Capital Advisers, Inc.
Pursuant to the Distribution and Service Plans adopted in accordance with Rule 12b-1 under the 1940 Act, the Distributor may receive a monthly distribution and service fee, at an annual rate of up to 0.25% of the average daily net assets of Class A Shares, except for S&P 500 Index Fund, at an annual rate of up to 0.50% of the average daily net assets of Class R Shares and 1.00% of the average daily net assets of Class C Shares of the Funds. The Distributor may receive a monthly distribution and service fee at an annual rate of up to 0.15% of the average daily net assets of Class A Shares of S&P 500 Index Fund. The distribution and service fees paid to the Distributor may be used by the Distributor to pay for activities primarily intended to result in the sale of Class A, Class R or Class C Shares of the Funds.
In addition, the Distributor is entitled to receive commissions on sales of the Class A Shares and of the Funds. For the year ended June 30, 2020, the Distributor received approximately $60 thousand from commissions earned on sales of Class A Shares of the Funds.
The Adviser has entered into expense limitation agreements with certain Funds. Under the terms of the agreements, the Adviser has agreed to waive fees or reimburse certain expenses to the extent that ordinary operating expenses incurred by certain classes of a Fund in any fiscal year exceed the expense limit for such classes of the Fund. Such excess amounts will be the liability of the Adviser. Interest, taxes, brokerage commissions, other expenditures which are capitalized in accordance with GAAP, and other extraordinary expenses not incurred in the ordinary course of a Fund's business are excluded from the expense limits. As of June 30, 2020, the expense limits (excluding voluntary waivers) are as follows:
In effect July 1, 2019 until October 31, 2020 | |||||||||||||||||||||||||||
Class A Shares | Class C Shares | Class I Shares | Class R Shares | Class R6 Shares | Class Y Shares | ||||||||||||||||||||||
Integrity Discovery Fund | N/A | 2.45 | %(a) | N/A | 2.08 | % | N/A | N/A | |||||||||||||||||||
Integrity Mid-Cap Value Fund | 1.00 | % | 1.75 | %(b) | N/A | N/A | 0.60 | % | 0.75 | % | |||||||||||||||||
Integrity Small-Cap Value Fund | 1.50 | % | N/A | N/A | 1.75 | % | N/A | N/A | |||||||||||||||||||
Integrity Small/Mid-Cap Value Fund | 1.13 | % | N/A | N/A | N/A | 0.83 | % | 0.88 | % | ||||||||||||||||||
Munder Multi-Cap Fund | N/A | 2.16 | %(a) | N/A | N/A | N/A | N/A | ||||||||||||||||||||
S&P 500 Index Fund | N/A | N/A | N/A | N/A | N/A | N/A |
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Victory Portfolios | Notes to Financial Statements — continued June 30, 2020 |
In effect July 1, 2019 until October 31, 2020 | |||||||||||||||||||||||||||
Class A Shares | Class C Shares | Class I Shares | Class R Shares | Class R6 Shares | Class Y Shares | ||||||||||||||||||||||
Munder Mid-Cap Core Growth Fund | 1.32 | % | N/A | N/A | 1.57 | % | N/A | N/A | |||||||||||||||||||
Munder Small Cap Growth Fund | 1.40 | % | N/A | 1.15 | % | N/A | N/A | 1.25 | % | ||||||||||||||||||
Trivalent Emerging Markets Small-Cap Fund | 1.73 | % | N/A | N/A | N/A | N/A | 1.48 | % | |||||||||||||||||||
Trivalent International Fund-Core Equity . . | 0.95 | % | 1.70 | % | 0.60 | % | N/A | 0.55 | % | 0.70 | % | ||||||||||||||||
Trivalent International Small-Cap Fund | 1.35 | % | 2.10 | % | 0.95 | % | N/A | 1.10 | % | 1.10 | % | ||||||||||||||||
INCORE Total Return Bond Fund | 0.85 | % | 1.60 | % | N/A | N/A | 0.58 | % | 0.60 | % |
(a) In Effect March 1, 2020 until at least October 31, 2020.
(b) In Effect April 22, 2019 until at least October 31, 2020.
The Funds have agreed to repay fees and expenses that were waived or reimbursed by the Adviser for a period up to three fiscal years after such waiver or reimbursement was made to the extent such payments or repayments would not cause the expenses of a class to exceed the original expense limitation in place at the time of the waiver or reimbursement or any expense limitation agreement in place at the time of repayment. Amounts repaid to the Adviser during the year, if any, are reflected on the Statements of Operations as Recoupment of prior expenses waived/reimbursed by Adviser.
As of June 30, 2020, the following amounts are available to be repaid to the Adviser (the amounts in thousands):
Expires 6/30/21 | Expires 6/30/22 | Expires 6/30/23 | Total | ||||||||||||||||
Integrity Discovery Fund | $ | 6 | $ | 10 | $ | 9 | $ | 25 | |||||||||||
Integrity Mid-Cap Value Fund | 195 | 292 | 615 | 1,102 | |||||||||||||||
Integrity Small-Cap Value Fund | 108 | 170 | 8 | 286 | |||||||||||||||
Integrity Small/Mid-Cap Value Fund | 212 | 189 | 185 | 586 | |||||||||||||||
Munder Multi-Cap Fund | — | — | 2 | 2 | |||||||||||||||
Munder Mid-Cap Core Growth Fund | 23 | 25 | 16 | 64 | |||||||||||||||
Munder Small Cap Growth Fund | 13 | 5 | 19 | 37 | |||||||||||||||
Trivalent Emerging Markets Small-Cap Fund | 113 | 67 | 99 | 279 | |||||||||||||||
Trivalent International Fund-Core Equity | 206 | 222 | 522 | 950 | |||||||||||||||
Trivalent International Small-Cap Fund | 2,107 | 2,605 | 3,170 | 7,882 | |||||||||||||||
INCORE Total Return Bond Fund | 52 | 54 | 52 | 158 |
The Adviser may voluntarily waive or reimburse additional fees to assist the Funds in maintaining competitive expense ratios. Voluntary waivers and reimbursements applicable to the Funds are not available to be recouped at a future time. There were no voluntary waivers or reimbursements for the year ended June 30, 2020.
Certain officers and/or interested trustees of the Funds are also officers and/or employees of the Adviser, Administrator, Fund Accountant, Sub-Administrator, Sub-Fund Accountant, and Legal Counsel.
5. Risks:
Each Fund may be subject to other risks in addition to these identified risks.
An investment in the Funds' shares represents an indirect investment in the securities owned by the Funds, some of which will be traded on a national securities exchange or in the over-the-counter markets. The value of the securities in which the Funds invest, like other market investments, may move up or down, sometimes rapidly and unpredictably. The value of the securities in which the Funds invest may affect the value of the Funds' shares. An investment in the Funds' shares at any point in time may be worth less than the original investment, even after taking into account the reinvestment of the Funds' distributions.
The Trivalent Emerging Markets Small-Cap Fund, Trivalent International Fund-Core Equity and Trivalent International Small-Cap Fund invest in securities of foreign issuers in various countries. Investing on an international basis involves certain risks not involved in domestic investments including
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Victory Portfolios | Notes to Financial Statements — continued June 30, 2020 |
the risk of nationalization or expropriation of assets, imposition of currency exchange controls or restrictions on the repatriation of foreign currency, confiscatory taxation, political or financial instability and diplomatic developments, which could affect the value of a Fund's investments in certain foreign countries. Governments of many countries have exercised and continue to exercise substantial influence over many aspects of the private sector through the ownership or control of many companies, including some of the largest in these countries. As a result, government actions in the future could have a significant effect on economic conditions which may adversely affect prices of certain portfolio securities. There is also generally less government supervision and regulation of stock exchanges, brokers and listed companies than in the United States. Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign withholding taxes, and special U.S. tax considerations may apply. Moreover, foreign economies may differ favorably or unfavorably from the U.S. economy in such respects as growth of gross national product, rate of inflation, capital re-investment, resource self-sufficiency and balance of payments position. The Schedule of Portfolio Investments includes information on each Fund's holdings, including industry and/or geographic composition, as relevant.
The INCORE Total Return Bond Fund is subject to credit and interest rate risk with respect to fixed income securities. Credit risk refers to the ability of an issuer to make timely payments of interest and principal. Interest rates may rise, or the rate of inflation may increase, impacting the value if investments in fixed income securities. A debt issuer's credit quality may be downgraded, or an issuer may default. Interest rates may fluctuate due to changes in governmental fiscal policy initiatives and resulting market reaction to those initiatives.
The Funds will be subject to credit risk with respect to the amount each expects to receive from counterparties for financial instruments entered into by the Funds. The Funds may be negatively impacted if a counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties. The Funds may experience significant delays in obtaining any recovery in bankruptcy or other reorganization proceeding and the Funds may obtain only limited recovery or may obtain no recovery in such circumstances. The Funds typically enter into transactions with counterparties whose credit ratings are investment grade, as determined by a nationally recognized statistical rating organization or, if unrated, judged by the Adviser to be of comparable quality.
An outbreak of respiratory disease called COVID-19 was first detected in China in December 2019 and subsequently spread internationally. The transmission of COVID-19 and efforts to contain its spread have resulted in international, national and local border closings and other significant travel restrictions and disruptions, significant disruptions to business operations, supply chains and consumer activity, significant challenges in healthcare service preparation and delivery, quarantines and general concern and uncertainty. These negative impacts have caused significant volatility and declines in global financial markets, which have caused losses for Fund investors during and subsequent to period end. The impact of the COVID-19 pandemic may be short term or may last for an extended period of time, and in either case could result in a substantial economic downturn or recession. Public health crises may exacerbate other pre-existing political, social, economic, market and financial risks. The extent of the impact to the financial performance of the Funds' investments will depend on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, and (iv) the effects on the economy overall, all of which are highly uncertain and cannot be predicted.
6. Borrowing and Interfund Lending:
Line of Credit:
For the year ended June 30, 2020, the Victory Funds Complex and the USAA Mutual Funds Complex (another series of mutual funds managed by the Adviser) participated in a short-term demand note "Line of Credit" agreement with Citibank. The Line of Credit agreement with Citibank was renewed on June 29, 2020 with a termination date of June 28, 2021. Under the agreement with Citibank, the Victory Funds Complex and USAA Mutual Funds Complex, combined, may borrow up to $600 million, of which $300 million is committed and $300 million is uncommitted. $40 million of the Line of Credit is reserved for use by the Victory Floating Rate Fund (herein, the "Fund"), another series of the Victory Funds Complex, with that Fund paying the related commitment fees for that amount. The purpose of the
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Victory Portfolios | Notes to Financial Statements — continued June 30, 2020 |
agreement is to meet temporary or emergency cash needs. For the year ended June 30, 2020, Citibank received an annual commitment fee of 0.15% on $300 million for providing the Line of Credit. For the year ended June 30, 2020, Citibank earned approximately $450 thousand in commitment fees from the combined Victory Funds Complex and USAA Mutual Funds Complex. Each fund in the Victory Funds Complex pays a pro-rata portion of the commitment fees plus any interest (one month LIBOR plus one percent) on amounts borrowed. Effective June 29, 2020, under an amended Line of Credit agreement, Citibank will also receive an annual upfront fee of 0.10% on the $300 million committed line of credit. Each fund in the Victory Funds Complex will pay a pro-rata portion of the upfront fee. Interest charged to each Fund during the period, if applicable, is presented on the Statements of Operations under Line of credit fees.
The Funds did not utilize the Line of Credit during the fiscal year ended June 30, 2020.
Interfund Lending:
The Trust and Adviser rely on an exemptive order granted by the SEC in March 2017 (the "Order"), permitting the establishment and operation of an Interfund Lending Facility (the "Facility"). The Facility allows each Fund to directly lend money to and borrow money from any other Victory Fund relying upon the Order at rates beneficial to both the borrowing and lending funds. Advances under the Facility are allowed for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities, and are subject to each Fund's borrowing restrictions. The interfund loan rate is determined, as specified in the Order, by averaging the current repurchase agreement rate and the current bank loan rate. As a Borrower, interest charged to each Fund during the period, if applicable, is presented on the Statements of Operations under Interfund lending fees. As a Lender, interest earned by each Fund during the period, if applicable, is presented on the Statements of Operations under Interest expense on interfund lending.
The average borrowing for the days outstanding and average interest rate for each Fund during the year ended June 30, 2020 were as follows (amounts in thousands):
Borrower or Lender | Amount Outstanding at June 30, 2020 | Average Borrowing* | Days Borrowing Outstanding | Average Interest Rate* | Maximum Borrowing During the Period | ||||||||||||||||||||||
Munder Mid-Cap Core Growth Fund | Borrower | $ | — | $ | 1,506 | 1 | 2.13 | % | $ | 1,506 | |||||||||||||||||
Trivalent International Small-Cap Fund | Borrower | — | 5,228 | 2 | 0.91 | % | 8,559 |
* For the year ended June 30, 2020, based on the number of days borrowings were outstanding.
7. Federal Income Tax Information:
The tax character of distributions paid during the tax years ended, as noted below, were as follows (total distributions paid may differ from the Statements of Changes in Net Assets because, for tax purposes, dividends are recognized when actually paid) (amounts in thousands):
Year Ended June 30, 2020 | |||||||||||||||||||||||
Distributions paid from | |||||||||||||||||||||||
Ordinary Income | Net Long-Term Capital Gains | Total Taxable Distributions | Return of Capital | Total Distributions Paid | |||||||||||||||||||
Integrity Discovery Fund | $ | — | $ | 3,016 | $ | 3,016 | $ | — | $ | 3,016 | |||||||||||||
Integrity Mid-Cap Value Fund | 1,864 | — | 1,864 | — | 1,864 | ||||||||||||||||||
Integrity Small-Cap Value Fund | 7,384 | 9,796 | 17,180 | — | 17,180 | ||||||||||||||||||
Integrity Small/Mid-Cap Value Fund | 1,120 | — | 1,120 | — | 1,120 | ||||||||||||||||||
Munder Multi-Cap Fund | 1,013 | 9,950 | 10,963 | — | 10,963 | ||||||||||||||||||
S&P 500 Index Fund | 3,010 | 24,335 | 27,345 | — | 27,345 | ||||||||||||||||||
Munder Mid-Cap Core Growth Fund | 8,744 | 502,320 | 511,064 | — | 511,064 |
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Victory Portfolios | Notes to Financial Statements — continued June 30, 2020 |
Year Ended June 30, 2020 | |||||||||||||||||||||||
Distributions paid from | |||||||||||||||||||||||
Ordinary Income | Net Long-Term Capital Gains | Total Taxable Distributions | Return of Capital | Total Distributions Paid | |||||||||||||||||||
Munder Small Cap Growth Fund | $ | 470 | $ | 256 | $ | 726 | $ | — | $ | 726 | |||||||||||||
Trivalent Emerging Markets Small-Cap Fund | 80 | — | 80 | — | 80 | ||||||||||||||||||
Trivalent International Fund-Core Equity | 1,079 | — | 1,079 | — | 1,079 | ||||||||||||||||||
Trivalent International Small-Cap Fund | 37,815 | — | 37,815 | — | 37,815 | ||||||||||||||||||
INCORE Total Return Bond Fund | 1,901 | — | 1,901 | — | 1,901 | ||||||||||||||||||
Year Ended June 30, 2019 | |||||||||||||||||||||||
Distributions paid from | |||||||||||||||||||||||
Ordinary Income | Net Long-Term Capital Gains | Total Taxable Distributions | Return of Capital | Total Distributions Paid | |||||||||||||||||||
Integrity Discovery Fund | $ | 2,016 | $ | 14,582 | $ | 16,598 | $ | — | $ | 16,598 | |||||||||||||
Integrity Mid-Cap Value Fund | 1,902 | 2,983 | 4,885 | — | 4,885 | ||||||||||||||||||
Integrity Small-Cap Value Fund | 40,869 | 233,572 | 274,441 | — | 274,441 | ||||||||||||||||||
Integrity Small/Mid-Cap Value Fund | 1,265 | 3,976 | 5,241 | — | 5,241 | ||||||||||||||||||
Munder Multi-Cap Fund | 23,717 | 34,295 | 58,012 | — | 58,012 | ||||||||||||||||||
S&P 500 Index Fund | 3,685 | 19,429 | 23,114 | — | 23,114 | ||||||||||||||||||
Munder Mid-Cap Core Growth Fund | — | 775,240 | 775,240 | — | 775,240 | ||||||||||||||||||
Munder Small Cap Growth Fund | 505 | 357 | 862 | — | 862 | ||||||||||||||||||
Trivalent Emerging Markets Small-Cap Fund | 128 | 553 | 681 | — | 681 | ||||||||||||||||||
Trivalent International Fund-Core Equity | 743 | 236 | 979 | — | 979 | ||||||||||||||||||
Trivalent International Small-Cap Fund | 17,127 | 33,388 | 50,515 | — | 50,515 | ||||||||||||||||||
INCORE Total Return Bond Fund | 2,602 | — | 2,602 | — | 2,602 |
As of June 30, 2020, the components of accumulated earnings (deficit) on a tax basis were as follows (amounts in thousands):
Undistributed Ordinary Income | Undistributed Long-Term Capital Gains | Accumulated Earnings | Accumulated Capital and Other Losses | Qualified Late-Year Losses* | Unrealized Appreciation (Depreciation)** | Total Accumulated Earnings (Deficit) | |||||||||||||||||||||||||
Integrity Discovery Fund | $ | — | $ | — | $ | — | $ | (10,078 | ) | $ | (124 | ) | $ | (11,747 | ) | $ | (21,949 | ) | |||||||||||||
Integrity Mid-Cap Value Fund | 2,302 | — | 2,302 | (19,971 | ) | — | (11,539 | ) | (29,208 | ) | |||||||||||||||||||||
Integrity Small-Cap Value Fund | 7,498 | — | 7,498 | (230,673 | ) | — | (63,051 | ) | (286,226 | ) | |||||||||||||||||||||
Integrity Small/Mid-Cap Value Fund | 364 | — | 364 | (13,477 | ) | — | (8,217 | ) | (21,330 | ) | |||||||||||||||||||||
Munder Multi-Cap Fund | 370 | — | 370 | (7,601 | ) | — | 71,185 | 63,954 | |||||||||||||||||||||||
S&P 500 Index Fund | 372 | 7,023 | 7,395 | — | — | 161,363 | 168,758 | ||||||||||||||||||||||||
Munder Mid-Cap Core Growth Fund | — | 7,859 | 7,859 | — | (12,926 | ) | 139,997 | 134,930 | |||||||||||||||||||||||
Munder Small Cap Growth Fund | 262 | 586 | 848 | — | — | 1,862 | 2,710 | ||||||||||||||||||||||||
Trivalent Emerging Markets Small-Cap Fund | 89 | — | 89 | (1,647 | ) | — | 1,185 | (373 | ) | ||||||||||||||||||||||
Trivalent International Fund-Core Equity | 930 | — | 930 | (8,097 | ) | — | 488 | (6,679 | ) |
189
Victory Portfolios | Notes to Financial Statements — continued June 30, 2020 |
Undistributed Ordinary Income | Undistributed Long-Term Capital Gains | Accumulated Earnings | Accumulated Capital and Other Losses | Qualified Late-Year Losses* | Unrealized Appreciation (Depreciation)** | Total Accumulated Earnings (Deficit) | |||||||||||||||||||||||||
Trivalent International Small-Cap Fund | $ | 9,463 | $ | — | $ | 9,463 | $ | (154,795 | ) | $ | — | $ | 273,075 | $ | 127,743 | ||||||||||||||||
INCORE Total Return Bond Fund | 98 | — | 98 | (4,150 | ) | — | 2,624 | (1,428 | ) |
* Under the current tax law, net investment losses realized after October 31 or December 31 of a Fund's fiscal year may be deferred and treated as occurring on the first business day of the following fiscal year for tax purposes.
** The difference between the book-basis and tax-basis of unrealized appreciation/depreciation is attributable primarily to tax deferral of losses on wash sales and passive foreign investment company adjustments.
As of the tax year ended June 30, 2020, the following Funds had net capital loss carryforwards ("CLCFs") as summarized in the tables below.
CLCFs not limited as a result as either short-term or long-term depending on the originating capital loss were as follows (amounts in thousands).
Short-Term Amount | Long-Term Amount | Total | |||||||||||||
Integrity Discovery Fund | $ | 3,937 | $ | 6,141 | $ | 10,078 | |||||||||
Integrity Mid-Cap Value Fund | 19,296 | 675 | 19,971 | ||||||||||||
Integrity Small-Cap Value Fund | 135,836 | 94,837 | 230,673 | ||||||||||||
Integrity Small/Mid-Cap Value Fund | 11,685 | 1,792 | 13,477 | ||||||||||||
Munder Multi-Cap Fund | 7,601 | — | 7,601 | ||||||||||||
Trivalent Emerging Markets Small-Cap Fund | 1,304 | 343 | 1,647 | ||||||||||||
Trivalent International Fund-Core Equity | 8,097 | — | 8,097 | ||||||||||||
Trivalent International Small-Cap Fund | 138,291 | 16,504 | 154,795 | ||||||||||||
INCORE Total Return Bond Fund | 614 | 3,535 | 4,149 |
During the tax year ended June 30, 2020, the INCORE Total Return Bond Fund utilized $124 and $1,534, (in thousands) of short term and long term CLCFs, respectively.
As of June 30, 2020, the cost basis for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation and net unrealized appreciation (depreciation) for investments and derivatives were as follows (amounts in thousands):
Cost of Investments for Federal Tax Purposes | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||||||
Integrity Discovery Fund | $ | 80,059 | $ | 6,025 | $ | (17,772 | ) | $ | (11,747 | ) | |||||||||
Integrity Mid-Cap Value Fund | 218,489 | 14,492 | (26,031 | ) | (11,539 | ) | |||||||||||||
Integrity Small-Cap Value Fund | 1,722,199 | 189,698 | (252,749 | ) | (63,051 | ) | |||||||||||||
Integrity Small/Mid-Cap Value Fund | 126,793 | 10,176 | (18,393 | ) | (8,217 | ) | |||||||||||||
Munder Multi-Cap Fund | 277,830 | 84,601 | (13,416 | ) | 71,185 | ||||||||||||||
S&P 500 Index Fund | 52,500 | 164,771 | (3,408 | ) | 161,363 | ||||||||||||||
Munder Mid-Cap Core Growth Fund | 478,734 | 164,874 | (24,877 | ) | 139,997 | ||||||||||||||
Munder Small Cap Growth Fund | 10,150 | 2,847 | (985 | ) | 1,862 | ||||||||||||||
Trivalent Emerging Markets Small-Cap Fund | 7,420 | 1,929 | (741 | ) | 1,188 | ||||||||||||||
Trivalent International Fund-Core Equity | 133,971 | 11,233 | (10,702 | ) | 531 | ||||||||||||||
Trivalent International Small-Cap Fund | 1,606,745 | 416,199 | (143,156 | ) | 273,043 | ||||||||||||||
INCORE Total Return Bond Fund | 62,971 | 3,167 | (543 | ) | 2,624 |
190
Victory Portfolios | Notes to Financial Statements — continued June 30, 2020 |
8. Capital Contribution from Prior Custodian:
During 2016, certain Funds received notification from their prior custodian, State Street Bank and Trust ("State Street"), concerning issues related to billing on certain categories of expenses during the approximately 16-year period from 1998 through October 31, 2014. The over-billing primarily related to categories of expenses that involved an allocation of general costs among multiple clients.
State Street paid the refunded amounts during January 2017. Based on billing information received during 2016 from State Street and an analysis of any expense limitation agreements that were in place during the period of the activities in question, including the application of any recoupment provisions in such agreements, the Adviser received a portion of the refund.
The portion of the refund retained by the Funds was accounted for as a capital contribution and is reflected on the Financial Highlights as "Capital Contribution from Prior Custodian, Net".
9. Fund Ownership:
Ownership of more than 25% of the voting securities of a fund creates presumptions of control of the fund, under section 2(a)(9) of the 1940 Act. As of June 30, 2020, the shareholders listed below held more than 25% of the shares outstanding of the Funds and may be deemed to control those Funds.
Shareholder | Percent | ||||||||||
Integrity Mid-Cap Value Fund | Gerlach Nominee and Co. LLC | 64.2 | % | ||||||||
Integrity Small/Mid-Cap Value Fund | Edward D. Jones & Co., L.P. | 49.0 | % | ||||||||
Integrity Small-Cap Value Fund | National Financial Services, LLC | 26.6 | % | ||||||||
Munder Small Cap Growth Fund | Brian S Matuszak | 34.4 | % | ||||||||
Munder Small Cap Growth Fund | Tony Yee Dong | 48.8 | % | ||||||||
Trivalent Emerging Markets Small-Cap Fund | Matrix Trust Company | 52.1 | % | ||||||||
Trivalent International Fund-Core Equity | Gerlach Nominee and Co. LLC | 80.8 | % | ||||||||
Trivalent International Fund-Core Equity | National Financial Services, LLC | 26.3 | % | ||||||||
INCORE Total Return Bond Fund | Comerica Bank | 52.6 | % |
10. Recent Accounting Pronouncements:
In March 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards ("ASU") Update No. 2017-08 "Premium Amortization on Purchased Callable Debt Securities" ("ASU 2017-08"), which shortens the premium amortization period for purchased non-contingently callable debt securities. ASU 2017-08 specifies that the premium amortization period ends at the earliest call date, for purchased non-contingently callable debt securities. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Management does not believe that adoption of ASU 2017-08 will materially impact the Funds' financial statements.
191
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and Board of Trustees of Victory Portfolios
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of portfolio investments, of Victory Integrity Discovery Fund, Victory Integrity Mid-Cap Value Fund, Victory Integrity Small-Cap Value Fund, Victory Integrity Small/Mid-Cap Value Fund, Victory Munder Multi-Cap Fund, Victory S&P 500 Index Fund, Victory Munder Mid-Cap Core Growth Fund, Victory Munder Small Cap Growth Fund, Victory Trivalent Emerging Markets Small-Cap Fund, Victory Trivalent International Fund-Core Equity, Victory Trivalent International Small-Cap Fund, and Victory INCORE Total Return Bond Fund (the "Funds"), each a series of Victory Portfolios, as of June 30, 2020, and the related statements of operations for the year then ended, the statements of changes in net assets, including the related notes, and the financial highlights for each of the two years in the period then ended (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of June 30, 2020, the results of their operations for the year then ended, the changes in their net assets, and the financial highlights for each of the two years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
The Funds' financial highlights for the years ended June 30, 2018, and prior, were audited by other auditors whose report dated August 24, 2018, expressed an unqualified opinion on those financial highlights.
Basis for Opinion
These financial statements are the responsibility of the Funds' management. Our responsibility is to express an opinion on the Funds' financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of June 30, 2020, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers or counterparties were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more investment companies advised by Victory Capital Management, Inc. since 2015.
COHEN & COMPANY, LTD.
Cleveland, Ohio
August 25, 2020
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Trustee and Officer Information
Board of Trustees:
Overall responsibility for management of the Trust rests with the Board. The Trust is managed by the Board in accordance with the laws of the State of Delaware. There are currently nine Trustees, eight of whom are not "interested persons" of the Trust within the meaning of that term under the 1940 Act ("Independent Trustees") and one of whom is an "interested person" of the Trust within the meaning of that term under the 1940 Act ("Interested Trustee"). The Trustees, in turn, elect the officers of the Trust to actively supervise its day-to-day operations.
The following tables list the Trustees, their date of birth, position with the Trust, commencement of service, principal occupations during the past five years and any directorships of other investment companies or companies whose securities are registered under the Securities Exchange Act of 1934, as amended, or who file reports under that Act. Each Trustee oversees 42 portfolios in the Trust, nine portfolios in Victory Variable Insurance Funds and 26 portfolios in Victory Portfolios II, each a registered investment company that, together with the Trust, comprise the Victory Funds Complex. Each Trustee's address is c/o Victory Portfolios, 4900 Tiedeman Road, 4th Floor, Brooklyn, Ohio 44144. Each Trustee has an indefinite term.
Name and Date of Birth | Position Held with the Trust | Date Commenced Service | Principal Occupation During Past 5 Years | Other Directorships Held During Past 5 Years | |||||||||||||||
Independent Trustees. | |||||||||||||||||||
David Brooks Adcock, Born October 1951 | Trustee | May 2005 | Consultant (since 2006). | Chair and Trustee, Turner Funds (December 2016-December 2017). | |||||||||||||||
Nigel D. T. Andrews, Born April 1947 | Vice Chair and Trustee | August 2002 | Retired. | Director, TCG BDC II, Inc. (since 2017); Director, TCG BDC I, Inc. (formerly Carlyle GMS Finance, Inc.) (since 2012). | |||||||||||||||
E. Lee Beard,* Born August 1951 | Trustee | May 2005 | Retired (since 2015). | None. | |||||||||||||||
Dennis M. Bushe, Born January 1944 | Trustee | July 2016 | Retired. | Trustee, RS Investment Trust and RS Variable Products Trust (November 2011-July 2016). |
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Name and Date of Birth | Position Held with the Trust | Date Commenced Service | Principal Occupation During Past 5 Years | Other Directorships Held During Past 5 Years | |||||||||||||||
John L. Kelly, Born April 1953 | Trustee | February 2015 | Partner, McCarvill Capital Partners (September 2016-September 2017); Advisor (January 2016-April 2016) and Managing Partner (August 2014-January 2016) Endgate Commodities LLC. | Director, Caledonia Mining Corporation (since May 2012). | |||||||||||||||
David L. Meyer,* Born April 1957 | Trustee | December 2008 | Retired. | None. | |||||||||||||||
Gloria S. Nelund, Born May 1961 | Trustee | July 2016 | Chair, CEO and Co-Founder of TriLinc Global, LLC, an investment firm. | TriLinc Global Impact Fund, LLC (since 2012); Trustee, RS Investment Trust and RS Variable Products Trust (November 2007-July 2016). | |||||||||||||||
Leigh A. Wilson, Born December 1944 | Chair and Trustee | November 1994 | Private Investor. | Chair (since 2013), Caledonia Mining Corporation. | |||||||||||||||
Interested Trustee. | |||||||||||||||||||
David C. Brown,** Born May 1972 | Trustee | May 2008 | Chairman and Chief Executive Officer (since 2013), the Adviser; Chairman and Chief Executive Officer (since 2013), Victory Capital Holdings, Inc. | Trustee, USAA Mutual Funds Trust. |
* The Board has designated Mr. Meyer and Ms. Beard as its Audit Committee Financial Experts.
** Mr. Brown is an "Interested Person" by reason of his relationship with the Adviser.
The Statement of Additional Information includes additional information about the Trustees of the Trust and is available, without charge, by calling 800-539-3863.
194
Victory Portfolios | Supplemental Information — continued June 30, 2020 |
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Officers:
The officers of the Trust, their date of births, commencement of service and their principal occupations during the past five years, are detailed in the following table. Each officer serves until the earlier of his or her resignation, removal, retirement, death, or the election of a successor. The mailing address of each officer of the Trust is 4900 Tiedeman Road, 4th Floor, Brooklyn, Ohio 44144. The officers of the Trust receive no compensation directly from the Trust for performing the duties of their offices.
Name and Date of Birth | Position with the Trust | Date Commenced Service | Principal Occupation During Past 5 Years | ||||||||||||
Christopher K. Dyer, Born February 1962 | President | February 2006* | Director of Mutual Fund Administration, the Adviser. | ||||||||||||
Scott A. Stahorsky, Born July 1969 | Vice President | December 2014 | Manager, Fund Administration, the Adviser (since 2015); Senior Analyst, Fund Administration, the Adviser (prior to 2015). | ||||||||||||
Erin G. Wagner, Born February 1974 | Secretary | December 2014 | Associate General Counsel, the Adviser (since 2013). | ||||||||||||
Allan Shaer, Born March 1965 | Treasurer | May 2017 | Senior Vice President, Financial Administration, Citi Fund Services Ohio, Inc. (since 2016); Vice President, Mutual Fund Administration, JP Morgan Chase (2011-2016). | ||||||||||||
Christopher A. Ponte, Born March 1984 | Assistant Treasurer | December 2017 | Manager, Fund Administration, the Adviser (since 2017); Senior Analyst, Fund Administration, the Adviser (prior to 2017); Chief Financial Officer, Victory Capital Services, Inc. (since 2018). | ||||||||||||
Colin Kinney, Born October 1973 | Chief Compliance Officer | July 2017 | Chief Compliance Officer (since 2013) and Chief Risk Officer (2009-2017), the Adviser. | ||||||||||||
Chuck Booth, Born April 1960 | Anti-Money Laundering Compliance Officer and Identity Theft Officer | May 2015 | Director, Regulatory Administration and CCO Support Services, Citi Fund Services Ohio, Inc. | ||||||||||||
Jay G. Baris, Born January 1954 | Assistant Secretary | December 1997 | Partner, Sidley Austin LLP (since April 2020); Partner, Shearman & Sterling LLP (January 2018-April 2020); Partner, Morrison & Foerster LLP (2011-January 2018). |
* On December 3, 2014, Mr. Dyer resigned as Secretary of the Trust and accepted the position of President.
195
Victory Portfolios | Supplemental Information — continued June 30, 2020 |
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Proxy Voting and Portfolio Holdings Information
Proxy Voting:
Information regarding the policies and procedures each Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-539-3863. The information is also included in the Funds' Statement of Additional Information, which is available on the SEC's website at www.sec.gov.
Information relating to how the Funds voted proxies relating to portfolio securities held during the most recent twelve months ended June 30 is available on the SEC's website at www.sec.gov.
Availability of Schedules of Portfolio Investments:
The Trust files a complete list of Schedules of Portfolio Investments with the SEC for the first and third quarter of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC's web site at www.sec.gov.
Expense Examples
As a shareholder of the Funds, you may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases; and (2) ongoing costs, including management fees, distribution and service (12b-1) fees and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2020 through June 30, 2020.
The Actual Expense figures in the table below provide information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled "Actual Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
The Hypothetical Expense figures in the table below provide information about hypothetical account values and hypothetical expenses based on each Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in shareholder reports of other funds.
Please note the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning Account Value 1/1/20 | Actual Ending Account Value 6/30/20 | Hypothetical Ending Account Value 6/30/20 | Actual Expenses Paid During Period 1/1/20- 6/30/20* | Hypothetical Expenses Paid During Period 1/1/20- 6/30/20* | Annualized Expense Ratio During Period 1/1/20- 6/30/20 | ||||||||||||||||||||||
Integrity Discovery Fund | |||||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 700.80 | $ | 1,016.86 | $ | 6.81 | $ | 8.07 | 1.61 | % | |||||||||||||||
Class C Shares | 1,000.00 | 697.70 | 1,012.53 | 10.47 | 12.41 | 2.48 | |||||||||||||||||||||
Class R Shares | 1,000.00 | 699.50 | 1,014.52 | 8.79 | 10.42 | 2.08 | |||||||||||||||||||||
Class Y Shares | 1,000.00 | 701.10 | 1,017.55 | 6.22 | 7.37 | 1.47 |
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Beginning Account Value 1/1/20 | Actual Ending Account Value 6/30/20 | Hypothetical Ending Account Value 6/30/20 | Actual Expenses Paid During Period 1/1/20- 6/30/20* | Hypothetical Expenses Paid During Period 1/1/20- 6/30/20* | Annualized Expense Ratio During Period 1/1/20- 6/30/20 | ||||||||||||||||||||||
Integrity Mid-Cap Value Fund | |||||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 797.30 | $ | 1,019.89 | $ | 4.47 | $ | 5.02 | 1.00 | % | |||||||||||||||
Class C Shares | 1,000.00 | 794.40 | 1,016.16 | 7.81 | 8.77 | 1.75 | |||||||||||||||||||||
Class R6 Shares | 1,000.00 | 799.10 | 1,021.88 | 2.68 | 3.02 | 0.60 | |||||||||||||||||||||
Class Y Shares | 1,000.00 | 798.30 | 1,021.13 | 3.35 | 3.77 | 0.75 | |||||||||||||||||||||
Integrity Small-Cap Value Fund | |||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 712.20 | 1,017.70 | 6.13 | 7.22 | 1.44 | % | ||||||||||||||||||||
Class C Shares | 1,000.00 | 709.30 | 1,013.53 | 9.69 | 11.41 | 2.28 | |||||||||||||||||||||
Class R Shares | 1,000.00 | 711.20 | 1,016.16 | 7.45 | 8.77 | 1.75 | |||||||||||||||||||||
Class R6 Shares | 1,000.00 | 713.70 | 1,019.99 | 4.18 | 4.92 | 0.98 | |||||||||||||||||||||
Class Y Shares | 1,000.00 | 713.40 | 1,019.34 | 4.73 | 5.57 | 1.11 | |||||||||||||||||||||
Integrity Small/Mid Value Fund | |||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 759.60 | 1,019.24 | 4.94 | 5.67 | 1.13 | % | ||||||||||||||||||||
Class R6 Shares | 1,000.00 | 760.70 | 1,020.74 | 3.63 | 4.17 | 0.83 | |||||||||||||||||||||
Class Y Shares | 1,000.00 | 760.60 | 1,020.49 | 3.85 | 4.42 | 0.88 | |||||||||||||||||||||
Munder Multi-Cap Fund | |||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 918.40 | 1,018.15 | 6.44 | 6.77 | 1.35 | % | ||||||||||||||||||||
Class C Shares | 1,000.00 | 914.90 | 1,014.12 | 10.28 | 10.82 | 2.16 | |||||||||||||||||||||
Class Y Shares | 1,000.00 | 920.30 | 1,019.99 | 4.68 | 4.92 | 0.98 | |||||||||||||||||||||
S&P 500 Index Fund | |||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 966.90 | 1,022.08 | 2.74 | 2.82 | 0.56 | % | ||||||||||||||||||||
Class R Shares | 1,000.00 | 965.30 | 1,020.04 | 4.74 | 4.87 | 0.97 | |||||||||||||||||||||
Class Y Shares | 1,000.00 | 967.30 | 1,022.63 | 2.20 | 2.26 | 0.45 | |||||||||||||||||||||
Munder Mid-Cap Core Growth Fund | |||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 932.40 | 1,018.50 | 6.15 | 6.42 | 1.28 | % | ||||||||||||||||||||
Class C Shares | 1,000.00 | 927.80 | 1,014.77 | 9.73 | 10.17 | 2.03 | |||||||||||||||||||||
Class R Shares | 1,000.00 | 931.60 | 1,017.06 | 7.54 | 7.87 | 1.57 | |||||||||||||||||||||
Class R6 Shares | 1,000.00 | 934.70 | 1,020.98 | 3.75 | 3.92 | 0.78 | |||||||||||||||||||||
Class Y Shares | 1,000.00 | 934.30 | 1,020.19 | 4.52 | 4.72 | 0.94 | |||||||||||||||||||||
Munder Small Cap Growth Fund | |||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 1,002.10 | 1,017.90 | 6.97 | 7.02 | 1.40 | % | ||||||||||||||||||||
Class I Shares | 1,000.00 | 1,002.80 | 1,019.14 | 5.73 | 5.77 | 1.15 | |||||||||||||||||||||
Class Y Shares | 1,000.00 | 1,002.10 | 1,018.65 | 6.22 | 6.27 | 1.25 | |||||||||||||||||||||
Trivalent Emerging Markets Small-Cap Fund | |||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 981.60 | 1,016.26 | 8.52 | 8.67 | 1.73 | % | ||||||||||||||||||||
Class Y Shares | 1,000.00 | 981.60 | 1,017.50 | 7.29 | 7.42 | 1.48 | |||||||||||||||||||||
Trivalent International Fund-Core Equity | |||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 884.20 | 1,020.14 | 4.45 | 4.77 | 0.95 | % | ||||||||||||||||||||
Class C Shares | 1,000.00 | 881.30 | 1,016.41 | 7.95 | 8.52 | 1.70 | |||||||||||||||||||||
Class I Shares | 1,000.00 | 886.00 | 1,021.88 | 2.81 | 3.02 | 0.60 | |||||||||||||||||||||
Class R6 Shares | 1,000.00 | 886.60 | 1,022.13 | 2.58 | 2.77 | 0.55 | |||||||||||||||||||||
Class Y Shares | 1,000.00 | 885.20 | 1,021.38 | 3.28 | 3.52 | 0.70 |
197
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Beginning Account Value 1/1/20 | Actual Ending Account Value 6/30/20 | Hypothetical Ending Account Value 6/30/20 | Actual Expenses Paid During Period 1/1/20- 6/30/20* | Hypothetical Expenses Paid During Period 1/1/20- 6/30/20* | Annualized Expense Ratio During Period 1/1/20- 6/30/20 | ||||||||||||||||||||||
Trivalent International Small-Cap Fund | |||||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 909.90 | $ | 1,018.15 | $ | 6.41 | $ | 6.77 | 1.35 | % | |||||||||||||||
Class C Shares | 1,000.00 | 906.50 | 1,014.42 | 9.95 | 10.52 | 2.10 | |||||||||||||||||||||
Class I Shares | 1,000.00 | 911.90 | 1,020.14 | 4.52 | 4.77 | 0.95 | |||||||||||||||||||||
Class R6 Shares | 1,000.00 | 910.90 | 1,019.54 | 5.08 | 5.37 | 1.07 | |||||||||||||||||||||
Class Y Shares | 1,000.00 | 910.90 | 1,019.39 | 5.23 | 5.52 | 1.10 | |||||||||||||||||||||
INCORE Total Return Bond Fund | |||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 1,051.00 | 1,020.64 | 4.33 | 4.27 | 0.85 | % | ||||||||||||||||||||
Class C Shares | 1,000.00 | 1,047.00 | 1,016.91 | 8.14 | 8.02 | 1.60 | |||||||||||||||||||||
Class R6 Shares | 1,000.00 | 1,052.20 | 1,021.98 | 2.96 | 2.92 | 0.58 | |||||||||||||||||||||
Class Y Shares | 1,000.00 | 1,053.20 | 1,021.88 | 3.06 | 3.02 | 0.60 |
* Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 182/366 (the number of days in the most recent half-year divided by the number of days in the fiscal year).
198
Victory Portfolios | Supplemental Information — continued June 30, 2020 |
(Unaudited)
Additional Federal Income Tax Information
For the year ended June 30, 2020, the Funds paid qualified dividend income for the purposes of reduced individual federal income tax rates of:
Percent | |||||||
Integrity Mid-Cap Value Fund | 94 | % | |||||
Integrity Small-Cap Value Fund | 100 | % | |||||
Integrity Small/Mid-Cap Value Fund | 100 | % | |||||
Munder Multi-Cap Fund | 100 | % | |||||
S&P 500 Index Fund | 100 | % | |||||
Munder Mid-Cap Core Growth Fund | 82 | % | |||||
Munder Small Cap Growth Fund | 5 | % | |||||
Trivalent Emerging Markets Small-Cap Fund | 71 | % | |||||
Trivalent International Fund-Core Equity | 96 | % | |||||
Trivalent International Small-Cap Fund | 97 | % |
Dividends qualified for corporate dividends received deductions of:
Percent | |||||||
Integrity Mid-Cap Value Fund | 94 | % | |||||
Integrity Small-Cap Value Fund | 100 | % | |||||
Integrity Small/Mid-Cap Value Fund | 100 | % | |||||
Munder Multi-Cap Fund | 100 | % | |||||
S&P 500 Index Fund | 100 | % | |||||
Munder Mid-Cap Core Growth Fund | 75 | % | |||||
Munder Small Cap Growth Fund | 5 | % |
For the year ended June 30, 2020, the following Funds designated short-term capital gain distributions:
Amount | |||||||
S&P 500 Index Fund | $ | 27 | |||||
Munder Mid-Cap Core Growth Fund | 8,744 | ||||||
Munder Small Cap Growth Fund | 470 |
For the year ended June 30, 2020, the following Funds designated long-term capital gain distributions:
Amount | |||||||
Integrity Discovery Fund | $ | 3,016 | |||||
Integrity Small-Cap Value Fund | 9,796 | ||||||
Munder Multi-Cap Fund | 9,950 | ||||||
S&P 500 Index Fund | 26,534 | ||||||
Munder Mid-Cap Core Growth Fund | 539,335 | ||||||
Munder Small Cap Growth Fund | 256 |
The following Funds intend to elect to pass through to shareholders the income tax credit for taxes paid to foreign countries. Foreign source income and foreign tax expense per outstanding share on June 30, 2020, were as follows:
Foreign Source Income | Foreign Tax Expense | ||||||||||
Trivalent Emerging Markets Small-Cap Fund | 0.33 | 0.03 | |||||||||
Trivalent International Fund-Core Equity | 0.13 | 0.01 | |||||||||
Trivalent International Small-Cap Fund | 0.24 | 0.03 |
199
Victory Portfolios | Supplemental Information — continued June 30, 2020 |
(Unaudited)
Liquidity Risk Management Program:
The Victory Funds have adopted and implemented a written liquidity risk management program (the "LRMP") as required by Rule 22e-4 under the Act. The LRMP is reasonably designed to assess and manage each Fund's liquidity risk, taking into consideration each Fund's investment strategy and the liquidity of its portfolio investments during normal and reasonably foreseeable stressed market conditions; its short and long-term cash flow projections; and its cash holdings and access to other liquidity management tools such as available funding sources including the Victory Funds Complex Interfund Lending Facility and Line of Credit (discussed in the Notes to Financial Statements). The Board approved the appointment of VCM as the administrator of the LRMP. At an in-person meeting held on February 20, 2020, VCM provided an oral and written report to the Trustees on the operation and effectiveness of the LRMP during the previous year.
VCM manages liquidity risks associated with the Funds' investments by monitoring, among other things, cash and cash equivalents, any use of derivatives, the concentration of investments, the appropriateness of each Fund's investment strategy, and by classifying every fund investment as either highly liquid, moderately liquid, less liquid or illiquid on at least a monthly basis. To assist with the classification of Fund investments, VCM has retained a third-party provider of liquidity evaluation services. This provider determines preliminary liquidity classifications for all portfolio holdings based upon portfolio-level data and certain assumptions provided by VCM. VCM reviews the preliminary liquidity classifications and, when appropriate, considers other information including input from the Funds' portfolio managers (including the portfolio managers employed by any investment sub-advisers) in determining final liquidity classifications.
The report from VCM concluded that the Funds did not experience any significant liquidity challenges during the covered period, and the Funds' LRMP is reasonably designed to assess and manage its liquidity risk. The report also concluded that the LRMP continues to operate adequately and effectively to enable VCM to oversee and manage liquidity risk and ensure each Fund is able to meet redemption requests without significant dilution to the remaining investors' interest in each Fund. During the review period, each Fund's portfolio consisted primarily of highly liquid investments, which are defined as cash and any investments reasonably expected to be converted to cash in current market conditions in three business days or less without significantly changing the market value of the investment. Therefore, the Funds have not adopted a Highly Liquid Investment Minimum. The Funds' investments were below the limitation on illiquid investments during the review period. Additionally, VCM indicated that no events occurred that would require the filing of Form N-LIQUID and recommended no material changes to the LRMP.
200
Privacy Policy
Protecting the Privacy of Information
The Trust respects your right to privacy. We also know that you expect us to conduct and process your business in an accurate and efficient manner. To do so, we must collect and maintain certain personal information about you. This is the information we collect from you on applications or other forms, and from the transactions you make with us or third parties. It may include your name, address, social security number, account transactions and balances, and information about investment goals and risk tolerance.
We do not disclose any information about you or about former customers to anyone except as permitted or required by law. Specifically, we may disclose the information we collect to companies that perform services on our behalf, such as the transfer agent that processes shareholder accounts and printers and mailers that assist us in the distribution of investor materials. We may also disclose this information to companies that perform marketing services on our behalf. This allows us to continue to offer you Victory investment products and services that meet your investing needs, and to effect transactions that you request or authorize. These companies will use this information only in connection with the services for which we hired them. They are not permitted to use or share this information for any other purpose.
To protect your personal information internally, we permit access only by authorized employees and maintain physical, electronic and procedural safeguards to guard your personal information.*
* You may have received communications regarding information about privacy policies from other financial institutions which gave you the opportunity to "opt-out" of certain information sharing with companies which are not affiliated with that financial institution. The Trust does not share information with other companies for purposes of marketing solicitations for products other than the Trust. Therefore, the Trust does not provide opt-out options to their shareholders.
Victory Funds
P.O. Box 182593
Columbus, Ohio 43218-2593
Visit our website at: | Call Victory at: | ||||||
www.vcm.com | 800-539-FUND (800-539-3863) |
VP-MUNDER-AR (6/30)
Item 2. Code of Ethics.
(a) | The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. This code of ethics in included as an Exhibit. |
(b) | During the period covered by the report, with respect to the registrant’s code of ethics that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions; there have been no amendments to, nor any waivers granted from, a provision that relates to any element of the code of ethics definition enumerated in paragraph (b) of this Item 2. |
Item 3. Audit Committee Financial Expert.
(a)(1) The registrant’s board of directors has determined that the registrant has at least one audit committee financial expert serving on its audit committee.
(a)(2) The audit committee financial experts are David L. Meyer and E. Lee Beard, who are “independent” for purposes of this Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services.
2020 | 2019 | |||||||
(a) Audit Fees (1) | $ | 152,500 | $ | 148,500 | ||||
(b) Audit-Related Fees (2) | 0 | 0 | ||||||
(c) Tax Fees (3) | 44,500 | 44,500 | ||||||
(d) All Other Fees (4) | 0 | 0 |
(1) Audit fees include amounts related to the audit of the Registrant’s annual financial statements and services normally provided by the accountant in connection with statutory and regulatory filings. Audit fees billed were for professional services provided by Cohen & Company, Ltd for audit compliance, audit advice and audit planning.
(2) Represents the fee for assurance and related services by Cohen & Company, Ltd reasonably related to the performance of the audit of the Registrant’s financial statements that was not reported under (a) of this item.
(3) Represents the aggregate tax fee billed for professional services rendered by Cohen & Company, Ltd for tax compliance, tax advice, international tax fee transactions and tax planning. Such tax services included the review of income and excise tax returns for the Registrant.
(4) For the fiscal years ended June 30, 2020 and June 30, 2019, there were no fees billed for professional services rendered by Cohen & Company, Ltd to the Registrant, other than the services reported in (a) through (c) of this item.
Tax fees for 2020 and 2019 are for recurring tax fees for the preparation of the federal and state tax returns and procedures performed relating to the Registrant’s analysis of complex securities.
(e)(1) The Registrant’s Audit Committee must pre-approve non-audit services to be provided by the principal accountant and the fees charged with these services. The Committee may delegate authority to one or more Committee members to pre-approve these services, subject to subsequent review and approval by the Committee.
(e)(2)
2020 | 100 | % | ||||
2019 | 100 | % |
(f) Not applicable.
(g)
2020 | $ | - | ||||
2019 | $ | - |
(h) The Registrant’s Audit Committee has evaluated the non-audit services that the principal accountant provided to the Registrant’s investment adviser (and the adviser’s relevant affiliated), which services the Committee did not pre-approve, and has concluded that the provision of those services was compatible with maintaining the accountant’s independence.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
(a) Not applicable.
(b) Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11. Controls and Procedures.
(a)The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures are adequately designed and are operating effectively to ensure that information required to be disclosed by the registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.
(b)There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940 (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that have materially affected or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
(a)(1) Not applicable.
(a)(2) Not applicable.
(a)(3) Not applicable.
(a)(4) Not applicable.
(b) Not applicable.
Item 13. Exhibits.
(a)(2) Certifications pursuant to Rule 30a-2(a) are attached hereto.
(a)(3) Not applicable.
(b) Certifications pursuant to Rule 30a-2(b) are furnished herewith.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) | Victory Portfolios |
By (Signature and Title)* | /s/ Allan Shaer | |
Allan Shaer, Principal Financial Officer |
Date | September 3, 2020 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* | /s/ Christopher K. Dyer | |
Christopher K. Dyer, Principal Executive Officer |
Date | September 3, 2020 |
By (Signature and Title)* | /s/ Allan Shaer | |
Allan Shaer, Principal Financial Officer |
Date | September 3, 2020 |