N-Q 1 a08-7057_1nq.htm N-Q

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number

811-4852

 

 

The Victory Portfolios

(Exact name of registrant as specified in charter)

 

3435 Stelzer Rd. Columbus, OH 43219

 

43219

(Address of principal executive offices)

 

(Zip code)

 

Citi Fund Services, 3435 Stelzer Rd. Columbus, OH 43219

(Name and address of agent for service)

 

Registrant's telephone number, including area code:

614-470-8000

 

 

Date of fiscal year end:

10/31/08

 

 

 

 

Date of reporting period:

01/31/08

 

 



 

Item 1. Schedule of Investments.

 



 

The Victory Portfolios

 

Schedule of Portfolio Investments

 

Balanced Fund

 

January 31, 2008

 

(Amounts in Thousands, Except for Shares)

 

(Unaudited)

 

 

 

 

 

Security Description

 

Principal
Amount

 

Value

 

Collateralized Mortgage Obligations (6.3%)

 

 

 

 

 

Bear Stearns Commercial Mortgage Securities

 

 

 

 

 

Series 2005-T20, Class A4A

 

 

 

 

 

5.15%, 10/12/42

 

$

260

 

$

262

 

Series 2007-T28, Class A3

 

 

 

 

 

5.79%, 9/11/42

 

200

 

198

 

Chase Mortgage Finance Corp.

 

 

 

 

 

Series 2005-A1, Class M

 

 

 

 

 

5.31%(a), 12/25/35

 

313

 

307

 

Series 2005-A2, Class M

 

 

 

 

 

5.44%(a), 1/25/36(b)

 

213

 

203

 

Series 2007-A1, Class 1B2

 

 

 

 

 

4.41%(a), 2/25/37(b)(c)

 

99

 

93

 

Series 2007-A1, Class 1M

 

 

 

 

 

4.41%(a), 2/25/37

 

177

 

175

 

Series 2007-A1, Class 2B1

 

 

 

 

 

5.80%(a), 3/25/37(b)(c)

 

144

 

136

 

Series 2007-A2, Class 1B1

 

 

 

 

 

4.47%(a), 7/25/37(b)(c)

 

104

 

101

 

Series 2007-S1, Class AM

 

 

 

 

 

6.08%, 2/25/37(b)

 

85

 

82

 

Series 2007-S1, Class B1

 

 

 

 

 

6.08%, 2/25/37(b)

 

61

 

53

 

ChaseFlex Trust, Series 2005-2, Class 4A3, 6.00% (a), 5/25/20

 

170

 

175

 

CS First Boston Mortgage Securities Corp.

 

 

 

 

 

Series 2005-C5, Class A4

 

 

 

 

 

5.10%, 8/15/38

 

390

 

388

 

Series 2005-C6, Class A4

 

 

 

 

 

5.23%, 12/15/40

 

475

 

481

 

Federal Home Loan Mortgage Corp., Structured Pass Through Securities,  Series T-42, Class A5, 7.50%, 2/25/42

 

181

 

196

 

First Horizon Alternative Mortgage Securities, Series 2006-FA6, Class B1, 6.22% (a), 11/25/36

 

222

 

191

 

GS Mortgage Securities Corp. II, Series 2007-GG10, Class A4, 5.99% (a), 8/10/45

 

300

 

304

 

GSR Mortgage Loan Trust

 

 

 

 

 

Series 2004-10F, Class 6A1

 

 

 

 

 

5.00%, 9/25/34

 

249

 

243

 

Series 2006-6F, Class M1

 

 

 

 

 

6.30%(a), 7/25/36

 

290

 

277

 

Series 2006-8F, Class B1

 

 

 

 

 

6.45%(a), 9/25/36

 

247

 

235

 

JP Morgan Mortgage Trust

 

 

 

 

 

Series 2005-A1, Class IB1

 

 

 

 

 

4.91%(a), 2/25/35(b)

 

266

 

260

 

Series 2005-A2, Class B1

 

 

 

 

 

4.92%(a), 4/25/35(b)

 

319

 

312

 

Series 2005-A3, Class 1B1

 

 

 

 

 

4.99%, 6/25/35(b)

 

304

 

296

 

Series 2005-A4, Class B1

 

 

 

 

 

5.20%(a), 7/25/35(b)

 

207

 

204

 

Series 2005-A6, Class 1B1

 

 

 

 

 

5.17%(a), 9/25/35

 

247

 

243

 

Series 2005-A8, Class B1

 

 

 

 

 

5.18%(a), 11/25/35(b)

 

342

 

332

 

Series 2006-A1, Class B1

 

 

 

 

 

5.40%(a), 2/25/36(b)

 

239

 

239

 

Series 2006-A2, Class IB1

 

 

 

 

 

5.68%(a), 4/25/36(b)

 

358

 

357

 

Series 2006-A5, Class B1

 

 

 

 

 

5.91%(a), 8/25/36

 

100

 

96

 

Series 2006-S4, Class B1

 

 

 

 

 

6.40%(a), 1/25/37

 

121

 

114

 

Series 2006-S4, Class B2

 

 

 

 

 

6.40%(a), 1/25/37(b)

 

150

 

134

 

 

See notes to schedules of investments.

 



 

Security Description

 

Shares/
Principal
Amount

 

Value

 

Series 2007-A1, Class B1

 

 

 

 

 

4.81%(a), 7/25/35

 

$

140

 

$

139

 

Series 2007-A2, Class B2

 

 

 

 

 

5.85%(a), 4/25/37(b)(c)

 

149

 

138

 

Series 2007-A2, Class B3

 

 

 

 

 

5.85%(a), 4/25/37(c)

 

100

 

84

 

Series 2007-A4, Class B1

 

 

 

 

 

5.76%(a), 6/25/37(b)(c)

 

220

 

210

 

Series 2007-A4, Class B2

 

 

 

 

 

5.76%(a), 6/25/37(c)

 

100

 

92

 

Morgan Stanley Mortgage Loan Trust, Series 2004-6AR, Class CB2, 5.07% (a), 8/25/34 (c)

 

100

 

79

 

Structured Adjustable Rate Mortgage Loan Trust, Series 2004-4, Class B1, 4.59% (a), 4/25/34

 

148

 

147

 

Structured Asset Securities Corp., Series 2005-17, Class 5A1, 5.50%, 10/25/35

 

134

 

135

 

 

 

 

 

 

 

Total Collateralized Mortgage Obligations (Cost $7,862)

 

 

 

7,711

 

 

 

 

 

 

 

Commercial Paper (0.3%)

 

 

 

 

 

Deutsche Bank Financial, LLC, 3.13% (d), 2/1/08

 

378

 

378

 

 

 

 

 

 

 

Total Commercial Paper (Amortized Cost $378)

 

 

 

378

 

 

 

 

 

 

 

Common Stocks (61.0%)

 

 

 

 

 

Automotive (0.3%)

 

 

 

 

 

Ford Motor Co. (e)

 

50,700

 

337

 

 

 

 

 

337

 

Banks (3.3%)

 

 

 

 

 

Bank of America Corp.

 

56,700

 

2,515

 

J.P. Morgan Chase & Co.

 

13,630

 

648

 

Wells Fargo Co.

 

26,500

 

901

 

 

 

 

 

4,064

 

Beverages (4.4%)

 

 

 

 

 

Coca-Cola Co. (b)

 

29,800

 

1,763

 

Diageo PLC, ADR

 

20,300

 

1,638

 

PepsiCo, Inc.

 

29,882

 

2,038

 

 

 

 

 

5,439

 

Biotechnology (2.0%)

 

 

 

 

 

Genentech, Inc. (e)

 

25,800

 

1,811

 

Gilead Sciences, Inc. (e)

 

13,400

 

612

 

 

 

 

 

2,423

 

Brokerage Services (1.6%)

 

 

 

 

 

Charles Schwab Corp.

 

87,911

 

1,960

 

 

 

 

 

1,960

 

Building Materials (0.5%)

 

 

 

 

 

USG Corp. (e)(f)

 

17,031

 

623

 

 

 

 

 

623

 

Chemicals (1.2%)

 

 

 

 

 

PPG Industries, Inc.

 

22,622

 

1,495

 

 

 

 

 

1,495

 

Computers & Peripherals (4.4%)

 

 

 

 

 

Apple Computer, Inc. (e)

 

6,900

 

934

 

Dell, Inc. (e)

 

75,100

 

1,505

 

EMC Corp. (e)

 

122,400

 

1,942

 

Network Appliance, Inc. (e)

 

19,000

 

441

 

Seagate Technology (f)

 

28,601

 

580

 

 

 

 

 

5,402

 

 

See notes to schedules of investments.

 



 

Security Description

 

Shares

 

Value

 

Cosmetics & Toiletries (2.1%)

 

 

 

 

 

Estee Lauder Cos., Class A

 

13,300

 

$

561

 

Procter & Gamble Co.

 

31,000

 

2,045

 

 

 

 

 

2,606

 

Financial Services (1.8%)

 

 

 

 

 

Citigroup, Inc.

 

46,500

 

1,312

 

Fannie Mae

 

26,400

 

894

 

 

 

 

 

2,206

 

Health Care (1.0%)

 

 

 

 

 

Medtronic, Inc.

 

27,400

 

1,276

 

 

 

 

 

1,276

 

Heavy Machinery (0.6%)

 

 

 

 

 

Caterpillar, Inc.

 

10,800

 

768

 

 

 

 

 

768

 

Home Builders (0.2%)

 

 

 

 

 

Toll Brothers, Inc. (e)(f)

 

11,400

 

265

 

 

 

 

 

265

 

Insurance (1.5%)

 

 

 

 

 

American International Group, Inc.

 

32,997

 

1,820

 

 

 

 

 

1,820

 

Internet Business Services (0.7%)

 

 

 

 

 

Google, Inc., Class A (e)

 

1,600

 

903

 

 

 

 

 

903

 

Internet Service Provider (0.4%)

 

 

 

 

 

Yahoo!, Inc. (e)(f)

 

29,347

 

563

 

 

 

 

 

563

 

Investment Companies (1.0%)

 

 

 

 

 

Invesco Ltd.

 

11,216

 

305

 

The Blackstone Group LP (f)

 

48,000

 

881

 

 

 

 

 

1,186

 

Manufacturing-Diversified (0.7%)

 

 

 

 

 

Siemens AG, Sponsored ADR

 

6,900

 

896

 

 

 

 

 

896

 

Manufacturing-Miscellaneous (1.9%)

 

 

 

 

 

3M Co.

 

29,100

 

2,318

 

 

 

 

 

2,318

 

Media (0.7%)

 

 

 

 

 

Viacom, Inc., Class B (e)

 

23,800

 

922

 

 

 

 

 

922

 

Medical Supplies (0.5%)

 

 

 

 

 

Zimmer Holdings, Inc. (e)

 

7,700

 

603

 

 

 

 

 

603

 

Mining (3.6%)

 

 

 

 

 

Barrick Gold Corp.

 

30,267

 

1,559

 

Newmont Mining Corp.

 

53,700

 

2,918

 

 

 

 

 

4,477

 

 

See notes to schedules of investments.

 



 

Security Description

 

Shares/
Principal
Amount

 

Value

 

Oil & Gas Exploration-Production & Services (1.3%)

 

 

 

 

 

Chesapeake Energy Corp.

 

44,400

 

$

1,653

 

 

 

 

 

1,653

 

Oilfield Services & Equipment (5.3%)

 

 

 

 

 

BJ Services Co.

 

35,000

 

761

 

Halliburton Co.

 

83,600

 

2,773

 

Schlumberger Ltd.

 

39,616

 

2,990

 

 

 

 

 

6,524

 

Pharmaceuticals (5.6%)

 

 

 

 

 

Johnson & Johnson

 

39,300

 

2,486

 

Merck & Co., Inc.

 

42,000

 

1,944

 

Pfizer, Inc.

 

57,624

 

1,348

 

Schering-Plough Corp.

 

55,400

 

1,084

 

 

 

 

 

6,862

 

Retail (0.9%)

 

 

 

 

 

Target Corp.

 

19,828

 

1,102

 

 

 

 

 

1,102

 

Retail-Department Stores (1.4%)

 

 

 

 

 

Kohl’s Corp. (e)

 

38,488

 

1,757

 

 

 

 

 

1,757

 

Retail-Drug Stores (1.7%)

 

 

 

 

 

CVS Caremark Corp.

 

52,700

 

2,059

 

 

 

 

 

2,059

 

Retail-Specialty Stores (0.5%)

 

 

 

 

 

Tiffany & Co.

 

15,331

 

612

 

 

 

 

 

612

 

Semiconductors (4.7%)

 

 

 

 

 

Intel Corp.

 

117,900

 

2,500

 

Maxim Integrated Products, Inc.

 

48,919

 

962

 

STMicroelectronics N.V., NY Shares

 

77,500

 

960

 

Taiwan Semiconductor Manufacturing Co., Ltd., Sponsored ADR

 

147,023

 

1,364

 

 

 

 

 

5,786

 

Software & Computer Services (1.7%)

 

 

 

 

 

Microsoft Corp.

 

63,600

 

2,073

 

 

 

 

 

2,073

 

Utilities-Electric (2.5%)

 

 

 

 

 

Duke Energy Corp.

 

51,300

 

957

 

Exelon Corp.

 

28,172

 

2,147

 

 

 

 

 

3,104

 

Utilities-Telecommunications (1.0%)

 

 

 

 

 

Verizon Communications, Inc.

 

33,481

 

1,300

 

 

 

 

 

1,300

 

 

 

 

 

 

 

Total Common Stocks (Cost $75,721)

 

 

 

75,384

 

 

 

 

 

 

 

Corporate Bonds (12.6%)

 

 

 

 

 

Aerospace/Defense (0.0%)

 

 

 

 

 

General Dynamics Corp., 4.50%, 8/15/10

 

$

19

 

20

 

 

 

 

 

20

 

Airlines (0.3%)

 

 

 

 

 

Continental Airlines, Inc., Series 99-2, 7.06%, 3/15/11

 

100

 

100

 

 

See notes to schedules of investments.

 



 

Security Description

 

Principal
Amount

 

Value

 

Delta Air Lines, Inc., Series 02-1, 6.42%, 7/2/12

 

$

270

 

$

272

 

 

 

 

 

372

 

Automotive (0.1%)

 

 

 

 

 

DaimlerChrysler North America Holding Corp.

 

 

 

 

 

7.30%, 1/15/12

 

27

 

30

 

8.50%, 1/18/31

 

22

 

27

 

 

 

 

 

57

 

Banks (2.1%)

 

 

 

 

 

Asian Development Bank

 

 

 

 

 

4.50%, 9/4/12, MTN

 

40

 

42

 

5.82%, 6/16/28, Callable 6/16/08 @ 100

 

20

 

22

 

BAC Capital Trust XI, 6.63%, 5/23/36

 

50

 

49

 

Bank of America Corp.

 

 

 

 

 

6.25%, 4/15/12

 

60

 

64

 

5.63%, 10/14/16(f)

 

100

 

102

 

8.00%, 12/29/49, Callable 1/30/18 @ 100(c)

 

490

 

509

 

European Investment Bank

 

 

 

 

 

3.38%, 3/16/09(f)

 

72

 

73

 

4.63%, 5/15/14(f)

 

145

 

155

 

Fifth Third Bancorp, 4.50%, 6/1/18

 

73

 

66

 

First Union Capital I, Series A, 7.94%, 1/15/27, Callable 2/22/08 @ 103.57

 

200

 

209

 

Inter-American Development Bank, 4.50%, 9/15/14

 

70

 

73

 

International Bank Recon & Development, 7.63%, 1/19/23

 

15

 

20

 

KFW

 

 

 

 

 

3.25%, 3/30/09

 

90

 

90

 

4.63%, 1/20/11

 

100

 

106

 

4.13%, 10/15/14

 

55

 

57

 

Korea Developmental Bank, Series 6, 5.75%, 9/10/13

 

35

 

36

 

Mellon Funding Corp., 6.38%, 2/15/10

 

65

 

69

 

Royal Bank of Scotland Group PLC, Series 1, 9.12%, 3/31/49, Callable 3/31/10 @ 100

 

130

 

141

 

UBS AG Stamford CT, 5.88%, 12/20/17 (f)

 

160

 

168

 

USB Capital IX, 6.19%, 4/15/49, Callable 4/15/11 @ 100

 

185

 

147

 

Wachovia Capital Trust III, 5.80%, 3/15/42, Callable 3/15/11 @ 100 (f)

 

195

 

154

 

Wachovia Corp.

 

 

 

 

 

3.63%, 2/17/09

 

72

 

71

 

5.25%, 8/1/14

 

60

 

60

 

Wells Fargo Co., 5.63%, 12/11/17

 

140

 

144

 

 

 

 

 

2,627

 

Beverages (0.1%)

 

 

 

 

 

Anheuser-Busch Cos., Inc.

 

 

 

 

 

9.00%, 12/1/09

 

1

 

1

 

5.05%, 10/15/16

 

45

 

45

 

Coca-Cola Enterprises, Inc.

 

 

 

 

 

5.75%, 11/1/08

 

29

 

29

 

8.50%, 2/1/12

 

37

 

43

 

8.50%, 2/1/22

 

25

 

32

 

 

 

 

 

150

 

Building-Residential & Commercial (0.2%)

 

 

 

 

 

KB Home, 8.63%, 12/15/08

 

210

 

209

 

 

 

 

 

209

 

Chemicals (0.1%)

 

 

 

 

 

Dow Chemical Co.

 

 

 

 

 

5.75%, 12/15/08

 

35

 

36

 

6.00%, 10/1/12

 

20

 

21

 

E.I. Du Pont de Nemours & Co., 4.88%, 4/30/14 (f)

 

20

 

20

 

Eastman Chemical, 7.60%, 2/1/27

 

11

 

12

 

 

 

 

 

89

 

 

See notes to schedules of investments.

 



 

Security Description

 

Principal
Amount

 

Value

 

Computers & Peripherals (0.1%)

 

 

 

 

 

International Business Machine Corp.

 

 

 

 

 

5.38%, 2/1/09

 

$

35

 

$

36

 

6.50%, 1/15/28

 

50

 

53

 

 

 

 

 

89

 

Cosmetics & Toiletries (0.1%)

 

 

 

 

 

Gillette Co., 3.80%, 9/15/09

 

55

 

56

 

Kimberly-Clark Corp.

 

 

 

 

 

5.00%, 8/15/13

 

40

 

42

 

6.25%, 7/15/18

 

25

 

27

 

Procter & Gamble Co., 4.95%, 8/15/14 (f)

 

30

 

31

 

 

 

 

 

156

 

Electric Integrated (0.2%)

 

 

 

 

 

Dominion Resources, Inc., Series C, 5.69%, 7/15/15

 

30

 

30

 

Entergy Gulf States, 6.18%, 3/1/35, Callable 3/1/10 @ 100

 

125

 

115

 

MidAmerican Energy Holdings, 6.50%, 9/15/37

 

45

 

46

 

Southern California Edison Co., 5.63%, 2/1/36

 

58

 

55

 

 

 

 

 

246

 

Financial Services (3.2%)

 

 

 

 

 

American General Finance, 3.88%, 10/1/09, MTN

 

53

 

53

 

Boeing Capital Corp., 5.80%, 1/15/13

 

33

 

35

 

Caterpillar Financial Service Corp.

 

 

 

 

 

4.50%, 6/15/09

 

30

 

30

 

4.60%, 1/15/14, MTN

 

15

 

15

 

CIT Group, Inc.

 

 

 

 

 

4.75%, 12/15/10, MTN

 

30

 

29

 

7.75%, 4/2/12

 

55

 

56

 

5.00%, 2/1/15, MTN

 

70

 

57

 

Citigroup Capital XXI, 8.30%, 12/21/77, Callable 12/21/37 @100 (f)

 

290

 

313

 

Citigroup, Inc., 5.00%, 9/15/14

 

60

 

58

 

Credit Suisse First Boston USA, Inc.

 

 

 

 

 

4.70%, 6/1/09

 

109

 

110

 

6.50%, 1/15/12

 

75

 

80

 

General Electric Capital Corp.

 

 

 

 

 

5.88%, 1/14/38

 

415

 

406

 

Series A

 

 

 

 

 

4.25%, 9/13/10, MTN

 

40

 

41

 

6.00%, 6/15/12, MTN

 

223

 

237

 

5.38%, 10/20/16, MTN (f)

 

85

 

87

 

5.63%, 9/15/17, MTN (f)

 

240

 

248

 

6.15%, 8/7/37, MTN (f)

 

40

 

41

 

Goldman Sachs Group, Inc.

 

 

 

 

 

6.88%, 1/15/11

 

136

 

147

 

6.60%, 1/15/12

 

82

 

89

 

5.75%, 10/1/16

 

115

 

120

 

HSBC Finance Corp.

 

 

 

 

 

4.13%, 11/16/09

 

155

 

155

 

6.75%, 5/15/11(f)

 

52

 

55

 

International Lease Finance Corp., 6.38%, 3/15/09

 

96

 

99

 

John Deere Capital Corp., 5.10%, 1/15/13 (f)

 

30

 

31

 

JP Morgan Chase & Co.

 

 

 

 

 

6.75%, 2/1/11(f)

 

120

 

128

 

6.00%, 1/15/18(b)

 

140

 

145

 

JP Morgan Chase Capital, 5.88%, 3/15/35

 

170

 

148

 

Lehman Brothers Holdings, Inc., 7.88%, 8/15/10

 

55

 

59

 

Merrill Lynch & Co., Inc.

 

 

 

 

 

6.00%, 2/17/09

 

84

 

86

 

6.88%, 11/15/18

 

59

 

62

 

Morgan Stanley Group, Inc., 4.25%, 5/15/10, MTN

 

71

 

71

 

SLM Corp., Series A, 5.63%, 1/25/25, Callable 1/25/10 @ 100, MTN

 

115

 

80

 

Toyota Motor Credit Corp., 4.25%, 3/15/10

 

25

 

25

 

Unilever Capital Corp., 5.90%, 11/15/32

 

38

 

38

 

Washington Mutual Preferred Funding IV, 9.75% (a), Perpetual Maturity, Callable 12/15/17 @ 100 (g)

 

200

 

184

 

 

See notes to schedules of investments.

 



 

Security Description

 

Principal
Amount

 

Value

 

Xstrata Finance Canada, 6.90%, 11/15/37 (g)

 

$

310

 

$

304

 

 

 

 

 

3,922

 

Food Distributors, Supermarkets & Wholesalers (0.0%)

 

 

 

 

 

Kroger Co., 7.50%, 4/1/31 (f)

 

17

 

19

 

Safeway, Inc., 7.50%, 9/15/09

 

32

 

34

 

 

 

 

 

53

 

Food Processing & Packaging (0.2%)

 

 

 

 

 

Kellogg Co., Series B, 6.60%, 4/1/11

 

24

 

26

 

Kraft Foods, Inc.

 

 

 

 

 

4.13%, 11/12/09

 

20

 

20

 

6.88%, 2/1/38

 

145

 

147

 

 

 

 

 

193

 

Forest Products & Paper (0.0%)

 

 

 

 

 

Weyerhaeuser Co.

 

 

 

 

 

6.75%, 3/15/12

 

24

 

25

 

7.38%, 3/15/32

 

17

 

17

 

 

 

 

 

42

 

Governments-Foreign (0.5%)

 

 

 

 

 

Province of Ontario, 5.13%, 7/17/12 (f)

 

49

 

53

 

Province of Quebec

 

 

 

 

 

5.75%, 2/15/09

 

24

 

25

 

4.88%, 5/5/14

 

55

 

59

 

Republic of Italy

 

 

 

 

 

4.50%, 1/21/15(f)

 

90

 

94

 

6.88%, 9/27/23

 

41

 

50

 

United Mexican States

 

 

 

 

 

9.88%, 2/1/10

 

63

 

70

 

6.38%, 1/16/13, MTN

 

220

 

238

 

Series A

 

 

 

 

 

6.75%, 9/27/34, MTN

 

41

 

44

 

 

 

 

 

633

 

Health Care (0.5%)

 

 

 

 

 

Health Net, Inc., 6.38%, 6/1/17

 

210

 

214

 

UnitedHealth Group, Inc., 4.88%, 3/15/15

 

40

 

39

 

WellPoint, Inc.

 

 

 

 

 

6.80%, 8/1/12

 

20

 

22

 

5.95%, 12/15/34

 

10

 

9

 

6.38%, 6/15/37

 

280

 

274

 

 

 

 

 

558

 

Insurance (0.5%)

 

 

 

 

 

Allstate Life Global Funding Trust, 4.50%, 5/29/09

 

30

 

30

 

AXA SA, 8.60%, 12/15/30

 

25

 

28

 

Cigna Corp., 7.00%, 1/15/11

 

10

 

11

 

ING Capital Funding Trust III, 8.44% (a), 12/31/49, Callable 12/31/10 @ 100

 

20

 

22

 

Marsh & Mclennan Cos., Inc., 5.75%, 9/15/15

 

36

 

36

 

MetLife, Inc., 5.38%, 12/15/12

 

30

 

31

 

Phoenix Cos., 6.68%, 2/16/08

 

340

 

340

 

Protective Life Secured Trust, 4.00%, 10/7/09, MTN

 

20

 

20

 

Prudential Financial, Inc.

 

 

 

 

 

Series D, 5.10%, 12/14/11, MTN

 

20

 

21

 

Series B, 5.10%, 9/20/14, MTN

 

60

 

61

 

 

 

 

 

600

 

Media (0.0%)

 

 

 

 

 

News America, Inc., 6.20%, 12/15/34

 

24

 

23

 

Time Warner, Inc., 6.88%, 5/1/12

 

30

 

32

 

 

 

 

 

55

 

 

See notes to schedules of investments.

 



 

Security Description

 

Principal
Amount

 

Value

 

Medical Supplies (0.2%)

 

 

 

 

 

AmerisourceBergen Corp., 5.88%, 9/15/15

 

$

200

 

$

198

 

Baxter International, Inc., 4.63%, 3/15/15

 

40

 

39

 

Cardinal Health, Inc., 5.85%, 12/15/17

 

30

 

31

 

 

 

 

 

268

 

Metal Fabrication (0.1%)

 

 

 

 

 

Timken Co., 5.75%, 2/15/10

 

105

 

108

 

 

 

 

 

108

 

Office Furnishing (0.1%)

 

 

 

 

 

Steelcase, Inc., 6.50%, 8/15/11

 

150

 

159

 

 

 

 

 

159

 

Oil & Gas-Exploration & Production (0.7%)

 

 

 

 

 

Marathon Oil Corp., 6.13%, 3/15/12

 

56

 

60

 

Merey Sweeny LP, 8.85%, 12/18/19 (g)

 

216

 

254

 

Pemex Project Funding Master Trust, 6.63%, 6/15/35 (f)

 

30

 

31

 

Western Oil Sands, Inc., 8.38%, 5/1/12

 

415

 

471

 

XTO Energy, Inc., 6.25%, 8/1/17

 

85

 

91

 

 

 

 

 

907

 

Oil Companies-Integrated (0.0%)

 

 

 

 

 

ConocoPhillips Co., 8.75%, 5/25/10

 

36

 

40

 

 

 

 

 

40

 

Pharmaceuticals (0.4%)

 

 

 

 

 

AstraZeneca PLC

 

 

 

 

 

5.90%, 9/15/17

 

45

 

48

 

6.45%, 9/15/37

 

145

 

157

 

Schering-Plough Corp., 6.55%, 9/15/37

 

160

 

162

 

Wyeth

 

 

 

 

 

6.95%, 3/15/11

 

30

 

32

 

5.50%, 2/1/14

 

65

 

67

 

6.50%, 2/1/34

 

45

 

47

 

 

 

 

 

513

 

Pipelines (0.5%)

 

 

 

 

 

Colorado Interstate Gas Co., 6.80%, 11/15/15

 

105

 

111

 

Tennessee Gas Pipeline, 7.63%, 4/1/37

 

260

 

283

 

Teppco Partners L.P., 6.13%, 2/1/13

 

165

 

177

 

 

 

 

 

571

 

Primary Metal & Mineral Production (0.3%)

 

 

 

 

 

Freeport-McMoRan Copper & Gold, Inc., 8.38%, 4/1/17, Callable 4/1/12 @ 104.19 (f)

 

370

 

393

 

 

 

 

 

393

 

Radio & Television (0.2%)

 

 

 

 

 

Comcast Cable Communications, 6.20%, 11/15/08

 

62

 

63

 

Comcast Corp.

 

 

 

 

 

4.95%, 6/15/16

 

55

 

52

 

6.45%, 3/15/37(f)

 

50

 

48

 

Cox Communications, Inc., 7.13%, 10/1/12

 

75

 

81

 

 

 

 

 

244

 

Railroads (0.4%)

 

 

 

 

 

Burlington Northern/Santa Fe, Inc., 7.13%, 12/15/10

 

60

 

65

 

Union Pacific Corp.

 

 

 

 

 

7.25%, 11/1/08

 

50

 

51

 

5.70%, 8/15/18

 

410

 

412

 

 

 

 

 

528

 

Retail-Discount (0.4%)

 

 

 

 

 

Target Corp.

 

 

 

 

 

5.38%, 6/15/09

 

53

 

54

 

5.88%, 3/1/12

 

33

 

 

35

 

 

See notes to schedules of investments.

 



 

Security Description

 

Principal
Amount

 

Value

 

Wal-Mart Stores, Inc.

 

 

 

 

 

6.88%, 8/10/09(f)

 

$

51

 

$

54

 

4.13%, 2/15/11

 

41

 

41

 

5.80%, 2/15/18

 

135

 

144

 

6.50%, 8/15/37(f)

 

175

 

183

 

 

 

 

 

511

 

Software & Computer Services (0.1%)

 

 

 

 

 

Cisco Systems, Inc., 5.50%, 2/22/16

 

60

 

62

 

 

 

 

 

62

 

Telecommunications (0.2%)

 

 

 

 

 

Inmarsat Finance PLC, 7.63%, 6/30/12, Callable 3/1/08 @ 103.81

 

200

 

206

 

 

 

 

 

206

 

Telecommunications-Cellular (0.0%)

 

 

 

 

 

New Cingular Wireless Services, 8.13%, 5/1/12

 

23

 

26

 

 

 

 

 

26

 

Telecommunications-Equipment (0.0%)

 

 

 

 

 

Motorola, Inc., 7.63%, 11/15/10

 

17

 

18

 

 

 

 

 

18

 

Utilities-Electric (0.4%)

 

 

 

 

 

Dominion Resources, Inc.

 

 

 

 

 

Series A

 

 

 

 

 

5.69%, 5/15/08

 

205

 

206

 

5.60%, 11/15/16

 

60

 

61

 

Series B

 

 

 

 

 

6.25%, 6/30/12

 

15

 

16

 

Hydro-Quebec, 8.05%, 7/7/24

 

37

 

49

 

Pacific Gas & Electric Co.

 

 

 

 

 

4.80%, 3/1/14

 

46

 

46

 

6.05%, 3/1/34(f)

 

48

 

47

 

Progress Energy, Inc., 6.85%, 4/15/12

 

37

 

40

 

 

 

 

 

465

 

Utilities-Telecommunications (0.4%)

 

 

 

 

 

AT&T Corp., 8.00%, 11/15/31

 

153

 

184

 

British Telecom PLC, 8.63%, 12/15/10

 

125

 

140

 

Sprint Capital Corp.

 

 

 

 

 

7.63%, 1/30/11

 

63

 

64

 

8.75%, 3/15/32

 

36

 

35

 

Sprint Nextel Corp., 6.00%, 12/1/16

 

70

 

62

 

 

 

 

 

485

 

 

 

 

 

 

 

Total Corporate Bonds (Cost $15,528)

 

 

 

15,575

 

 

 

 

 

 

 

Municipal Bonds (0.5%)

 

 

 

 

 

Illinois (0.1%)

 

 

 

 

 

State Taxable Pension, GO

 

70

 

70

 

 

 

 

 

70

 

New Jersey (0.2%)

 

 

 

 

 

State Transportation Trust Fund Authority, Series B

 

270

 

311

 

 

 

 

 

311

 

North Carolina (0.1%)

 

 

 

 

 

Mecklenburg County, GO (h)

 

140

 

159

 

 

 

 

 

159

 

 

See notes to schedules of investments.

 



 

Security Description

 

Shares/
Principal
Amount

 

Value

 

Ohio (0.1%)

 

 

 

 

 

Columbus Sewer Revenue

 

$

110

 

$

103

 

 

 

 

 

103

 

 

 

 

 

 

 

Total Municipal Bonds (Cost $644)

 

 

 

643

 

 

 

 

 

 

 

Preferred Stocks (0.4%)

 

 

 

 

 

Citigroup, Inc., Series AA, 8.13%

 

6

 

152

 

Freddie Mac, Series Z, 8.38%

 

13

 

344

 

 

 

 

 

 

 

Total Preferred Stocks (Cost $480)

 

 

 

496

 

 

 

 

 

 

 

U.S. Government Agency Securities (1.2%)

 

 

 

 

 

Federal Home Loan Mortgage Corp.

 

 

 

 

 

4.13%, 7/12/10(f)

 

$

727

 

749

 

4.65%, 10/10/13, Callable 4/10/08 @ 100(f)

 

10

 

10

 

4.50%, 1/15/14(f)

 

194

 

203

 

6.75%, 9/15/29

 

102

 

128

 

Federal National Mortgage Association

 

 

 

 

 

6.25%, 2/1/11(f)

 

229

 

249

 

5.00%, 3/15/16(f)

 

135

 

144

 

 

 

 

 

 

 

Total U.S. Government Agency Securities (Cost $1,399)

 

 

 

1,483

 

 

 

 

 

 

 

U.S. Government Mortgage Backed Agencies (11.9%)

 

 

 

 

 

Federal Home Loan Mortgage Corp.

 

 

 

 

 

6.50%, 5/1/26 – 1/1/36

 

513

 

537

 

7.00%, 7/1/29 – 7/1/32

 

242

 

257

 

8.00%, 6/1/30

 

13

 

14

 

5.00%, 6/1/33 – 6/1/34

 

796

 

793

 

6.77%(a), 8/1/36

 

110

 

114

 

5.50%, 10/1/36(h)

 

468

 

474

 

7.50%, 7/1/37

 

133

 

141

 

Federal National Mortgage Association

 

 

 

 

 

8.00%, 6/1/12 – 3/1/30

 

138

 

148

 

10.00%, 11/1/13

 

19

 

21

 

10.50%, 11/1/13

 

21

 

24

 

11.00%, 11/1/13

 

31

 

35

 

8.50%, 11/1/17

 

7

 

7

 

7.00%, 12/1/27 – 4/1/37

 

792

 

840

 

6.50%, 3/1/29 – 9/1/37

 

801

 

834

 

6.00%, 10/1/29 – 3/1/38

 

1,473

 

1,517

 

7.50%, 11/1/29

 

29

 

31

 

6.63%, 11/15/30

 

50

 

62

 

5.50%, 1/1/32 – 11/1/36

 

1,825

 

1,854

 

5.00%, 8/1/33 – 3/1/34

 

1,187

 

1,184

 

5.00%, 11/1/33 – 3/1/34(b)

 

1,193

 

1,190

 

7.00%, 12/1/33 – 12/1/37(h)

 

1,390

 

1,471

 

5.50%, 12/1/34(b)

 

652

 

661

 

6.03%(a), 4/1/36

 

309

 

321

 

6.28%(a), 5/1/36(c)

 

75

 

77

 

6.43%(a), 5/1/36

 

647

 

665

 

6.35%(a), 9/1/36(c)

 

270

 

278

 

6.04%(a), 9/1/37(c)

 

252

 

259

 

6.50%, 10/1/37 – 12/1/37(h)

 

536

 

557

 

5.00%, 2/1/38(h)

 

280

 

279

 

Government National Mortgage Association

 

 

 

 

 

9.50%, 7/15/09

 

2

 

2

 

7.00%, 4/15/28

 

5

 

5

 

 

 

 

 

 

 

Total U.S. Government Mortgage Backed Agencies (Cost $14,356)

 

 

 

14,652

 

 

 

 

 

 

 

U.S. Treasury Obligations (6.0%)

 

 

 

 

 

U.S. Treasury Bonds

 

 

 

 

 

 

See notes to schedules of investments.

 



 

Security Description

 

Shares/
Principal
Amount

 

Value

 

8.00%, 11/15/21(f)

 

$

208

 

$

292

 

6.25%, 8/15/23(f)

 

162

 

199

 

4.75%, 2/15/37(f)

 

330

 

352

 

U.S. Treasury Notes

 

 

 

 

 

3.75%, 5/15/08(f)

 

731

 

735

 

3.88%, 5/15/09(h)

 

10

 

10

 

3.13%, 11/30/09(h)

 

710

 

722

 

4.25%, 1/15/11 – 11/15/17(f)

 

1,766

 

1,859

 

4.63%, 7/31/12(f)

 

1,350

 

1,456

 

3.63%, 12/31/12(h)

 

255

 

265

 

4.25%, 8/15/13(f)(h)

 

1,317

 

1,406

 

5.13%, 5/15/16(f)

 

116

 

129

 

 

 

 

 

 

 

Total U.S. Treasury Obligations (Cost $7,174)

 

 

 

7,425

 

 

 

 

 

 

 

Short-Term Securities Held as Collateral for Securities Lending (10.3%)

 

 

 

 

 

Pool of various securities for Victory Funds-footnote 2 (Securities Lending)

 

12,700

 

12,700

 

 

 

 

 

 

 

Total Short-Term Securities Held as Collateral for Securities Lending (Cost $12,700)

 

 

 

12,700

 

 

 

 

 

 

 

Total investments (Cost $136,242) — 110.5%

 

 

 

136,447

 

 

 

 

 

 

 

Liabilities in excess of other assets — (10.5)%

 

 

 

(12,942

)

 

 

 

 

 

 

NET ASSETS — 100.0%

 

 

 

$

123,505

 

 

(a)

Variable or Floating Rate Security. Rate disclosed is as of 01/31/2008.

 

 

(b)

All or a portion of this security has been segregated as collateral for securities purchased on a when-issued basis.

 

 

(c)

Securities valued at fair value using methods approved by the Board of Trustees and representing 1.25% of net assets as of 1/31/08.

 

 

(d)

Rate represents the effective yield at purchase.

 

 

(e)

Non-income producing security.

 

 

(f)

A portion or all of the security was held on loan.

 

 

(g)

Rule 144A or other security which is restricted as to resale to institutional investors. The Fund’s advisor has deemed this security to be liquid based upon procedures approved by the Board of Trustees.

 

 

(h)

Security purchased on a “when-issued” basis.

 

 

ADR

American Depositary Receipt

 

 

FGIC

Insured by Financial Guaranty Insurance Co.

 

 

GO

General Obligation

 

 

LLC

Limited Liability Co.

 

 

LP

Limited Partnership

 

 

MTN

Medium Term Note

 

 

PLC

Public Liability Co.

 

Credit Default Swaps

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized

 

 

 

 

 

Buy/Sell

 

(Pay)/Receive

 

Expiration

 

Notional

 

Appreciation/

 

Counterparty

 

Reference Entity

 

Protection

 

Fixed Rate

 

Date

 

Amount

 

(Depreciation)

 

Bear Stearns

 

Dr Horton, 5.38%, 6/15/12

 

Sell

 

4.75

%

12/20/08

 

$

400

 

$

0

 

Bear Stearns

 

Pulte Homes, 5.25%, 1/15/14

 

Sell

 

5.00

%

12/20/08

 

200

 

1

 

Bear Stearns

 

Pulte Homes, 5.25%, 1/15/14

 

Sell

 

4.70

%

12/20/08

 

200

 

1

 

Bear Stearns

 

Stanley Works, 4.90%, 11/1/12

 

Buy

 

(1.20

)%

03/20/13

 

400

 

(8

)

Barclays Bank PLC

 

Freeport-McMoRan Copper & Gold, 6.88%, 2/1/14

 

Sell

 

1.00

%

12/20/12

 

400

 

(15

)

Barclays Bank PLC

 

Loews Corp., 5.25%, 3/15/16

 

Buy

 

(.45

)%

03/20/13

 

400

 

0

 

Barclays Bank PLC

 

Transocean, Inc., 7.38%, 4/15/18

 

Sell

 

.82

%

03/20/13

 

400

 

0

 

Barclays Bank PLC

 

Suncor Energy, Inc., 6.70%, 8/22/11

 

Buy

 

(.65

)%

03/20/13

 

400

 

0

 

 

 

 

 

 

 

 

 

 

 

$

 

(21

)

 

See notes to schedules of investments.

 



 

The Victory Portfolios

Schedule of Portfolio Investments

Core Bond Fund

January 31, 2008

(Amounts in Thousands, Except for Shares)

(Unaudited)

 

Security Description

 

Principal
Amount

 

Value

 

Collateralized Mortgage Obligations (17.5%)

 

 

 

 

 

Bear Stearns Commercial Mortgage Securities

 

 

 

 

 

Series 2005-T20, Class A4A

 

 

 

 

 

5.15%, 10/12/42

 

$

880

 

$

886

 

Series 2007-T28, Class A3

 

 

 

 

 

5.79%, 9/11/42

 

750

 

743

 

Chase Mortgage Finance Corp.

 

 

 

 

 

Series 2005-A1, Class M

 

 

 

 

 

5.31%(a), 12/25/35

 

859

 

843

 

Series 2005-A2, Class M

 

 

 

 

 

5.44%(a), 1/25/36

 

963

 

917

 

Series 2007-A1, Class 1B2

 

 

 

 

 

4.41%(a), 2/25/37(b)

 

310

 

293

 

Series 2007-A1, Class 1M

 

 

 

 

 

4.41%(a), 2/25/37

 

696

 

687

 

Series 2007-A1, Class 2B1

 

 

 

 

 

5.80%(a), 3/25/37(b)

 

553

 

520

 

Series 2007-A2, Class 1B1

 

 

 

 

 

4.47%(a), 7/25/37(b)

 

336

 

326

 

Series 2007-A2, Class 1M

 

 

 

 

 

4.47%(a), 7/25/37(b)

 

99

 

97

 

Series 2007-A2, Class 2M

 

 

 

 

 

4.47%(a), 7/25/37(b)

 

104

 

98

 

Series 2007-S1, Class AM

 

 

 

 

 

6.08%, 2/25/37(c)

 

351

 

337

 

Series 2007-S1, Class B1