N-CSRS 1 a15-11372_4ncsrs.htm N-CSRS

 

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

 

The Victory Portfolios

(Exact name of registrant as specified in charter)

 

3435 Stelzer Road, Columbus, Ohio

 

43219

(Address of principal executive offices)

 

(Zip code)

 

Citi Fund Services Ohio, Inc., 3435 Stelzer Road, Columbus, Ohio 43219

(Name and address of agent for service)

 

Registrant’s telephone number, including area code:

614-470-8000

 

 

Date of fiscal year end:

October 31

 

 

Date of reporting period:

April 30, 2015

 

 



 

Item 1. Reports to Stockholders.

 



April 30, 2015

Semi Annual Report

Newbridge Large Cap Growth Fund

Select Fund

Special Value Fund

Sycamore Established Value Fund

Sycamore Small Company Opportunity Fund

Expedition Emerging Markets Small Cap Fund

Newbridge Global Equity Fund

Fund for Income

National Municipal Bond Fund

Ohio Municipal Bond Fund

Balanced Fund

Investment Grade Convertible Fund




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, vcm.com has what you seek. Visit us anytime. We're always open.




The Victory Portfolios

Table of Contents

Shareholder Letter

   

5

   

Financial Statements

 

The Victory Equity Funds

 

Newbridge Large Cap Growth Fund

 

Schedule of Portfolio Investments

   

8

   

Statement of Assets and Liabilities

   

45

   

Statement of Operations

   

49

   

Statements of Changes in Net Assets

   

53-55

   

Financial Highlights

   

64-68

   

Select Fund

 

Schedule of Portfolio Investments

   

10

   

Statement of Assets and Liabilities

   

45

   

Statement of Operations

   

49

   

Statements of Changes in Net Assets

   

53-55

   

Financial Highlights

   

69-70

   

Special Value Fund

 

Schedule of Portfolio Investments

   

12

   

Statement of Assets and Liabilities

   

45

   

Statement of Operations

   

49

   

Statements of Changes in Net Assets

   

53-55

   

Financial Highlights

   

71-75

   

Sycamore Established Value Fund

 

Schedule of Portfolio Investments

   

14

   

Statement of Assets and Liabilities

   

46

   

Statement of Operations

   

50

   

Statements of Changes in Net Assets

   

56-58

   

Financial Highlights

   

76-80

   

Sycamore Small Company Opportunity Fund

 

Schedule of Portfolio Investments

   

17

   

Statement of Assets and Liabilities

   

46

   

Statement of Operations

   

50

   

Statements of Changes in Net Assets

   

56-58

   

Financial Highlights

   

81-84

   

The Victory International Equity Funds

 

Expedition Emerging Markets Small Cap Fund

 

Schedule of Portfolio Investments

   

20

   

Statement of Assets and Liabilities

   

46

   

Statement of Operations

   

50

   

Statements of Changes in Net Assets

   

56-58

   

Financial Highlights

   

85-87

   


1



Table of Contents (continued)

Newbridge Global Equity Fund

 

Schedule of Portfolio Investments

   

25

   

Statement of Assets and Liabilities

   

47

   

Statement of Operations

   

51

   

Statements of Changes in Net Assets

   

59-61

   

Financial Highlights

   

88-91

   

The Victory Taxable Fixed Income Fund

 

Fund for Income

 

Schedule of Portfolio Investments

   

30

   

Statement of Assets and Liabilities

   

47

   

Statement of Operations

   

51

   

Statements of Changes in Net Assets

   

59-61

   

Financial Highlights

   

92-97

   

The Victory Tax-Exempt Fixed Income Funds

 

National Municipal Bond Fund

 

Schedule of Portfolio Investments

   

32

   

Statement of Assets and Liabilities

   

47

   

Statement of Operations

   

51

   

Statements of Changes in Net Assets

   

59-61

   

Financial Highlights

   

98-99

   

Ohio Municipal Bond Fund

 

Schedule of Portfolio Investments

   

36

   

Statement of Assets and Liabilities

   

48

   

Statement of Operations

   

52

   

Statements of Changes in Net Assets

   

62-63

   

Financial Highlights

   

100

   

The Victory Hybrid Funds

 

Balanced Fund

 

Schedule of Portfolio Investments

   

39

   

Statement of Assets and Liabilities

   

48

   

Statement of Operations

   

52

   

Statements of Changes in Net Assets

   

62-63

   

Financial Highlights

   

101-104

   

Investment Grade Convertible Fund

 

Schedule of Portfolio Investments

   

42

   

Statement of Assets and Liabilities

   

48

   

Statement of Operations

   

52

   

Statements of Changes in Net Assets

   

62-63

   

Financial Highlights

   

105-106

   

Notes to Financial Statements

   

107

   


2



Table of Contents (continued)

Supplemental Information

   

121

   

Trustee and Officer Information

    121    

Proxy Voting and Form N-Q Information

    125    

Expense Examples

    125    

Portfolio Holdings

    129    

Advisory Contract Approval

   

131

   

The Funds are distributed by Victory Capital Advisers, 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 vcm.com or call 800-539-3863. Read it carefully before you invest or
send money.

The information in this semi-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


3



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4



The Victory Funds Letter to Shareholders

Dear Shareholder:

Over the past six months, Victory Capital has worked diligently to expand its available product set and enhance the investor experience with our firm. In addition to its previously announced acquisition of Munder Capital Management, Victory Capital also acquired its ninth investment franchise, Compass Efficient Model Portfolios, LLC ("Compass EMP"), on April 30th, 2015. Compass EMP has developed a strategic indexing approach that combines fundamental criteria with volatility weighting seeking to improve an investor's ability to outperform traditional indexing strategies. Victory Capital's acquisition of Compass EMP is an extension of the firm's multi-boutique business model and provides our investors access to this dynamic asset class. We believe that this partnership enables the firm and our clients to leverage new strengths, and we look forward to the opportunities afforded by this acquisition. In addition to a broadened product set, Victory Capital has also revamped its website, which now highlights our distinctly branded, autonomous investment franchises and significantly enhances our investor's browsing experience. As a shareholder, we encourage you to visit our new website (www.vcm.com) and benefit from these technological enhancements and expanded product offerings.

Marking the 6th consecutive year of positive gains, the S&P 500® Index posted a 13.7% total return in 2014, despite increased uncertainty created by decelerating global economic growth and a rapidly evolving macroeconomic backdrop. While there were numerous geopolitical events impacting the global landscape, such as slowing growth in China, rising conflicts in the Ukraine, sanctions against Russia, and the potential Greek exit from the Eurozone, the dominant forces driving market action can be boiled down to: (1) the strengthening U.S. dollar, (2) declining energy prices and (3) accommodative global monetary policy. The S&P 500® Index corrected nearly 10% in September/October during its initial reaction to the sharp decline in oil prices and the strengthening U.S. dollar before charging back to end the year at near record highs. This strength, which has continued into 2015, is due in large part to the monetary easing seen across the globe, resulting in record low interest rates, which in turn has helped justify P/E multiple expansion.

Indeed, 2015 and 2016 estimates continued to decline during the quarter, with EPS growth now expected to be a somewhat muted +2% year-over-year in 2015, the lowest level seen since exiting the great recession of 2008/2009. Expectations have been ratcheted backward on both the international and domestic fronts. In regards to the former, profits from overseas faced stiff headwinds from weak emerging market demand and a strengthening U.S. dollar. That said, a sharp reversal in both the dollar and oil prices post quarter end, could end up being a tailwind to estimates in the coming quarter.

It's worth noting that the dollar is both a proxy for the relative strength of the U.S. economy, as well as an equilibrium mechanism that helps drive economic convergence. It is also highly susceptible to cyclical and technical forces. Despite a few lackluster domestic economic data points such as flat GDP growth and lackluster retail sales, labor market indicators continue to harden and nonresidential investment remains solid. Continued productivity gains should lead to real wage increases in the U.S., which in turn should support positive GDP growth moving forward.


5



In the fixed income market, harsh winter weather, west coast port slowdowns and cut-backs in the energy sector, all contributed to slower growth over the past six months. Many expected the U.S. consumer to pick up the slack with strong consumption given the steep drop in gasoline prices, which functions to increase disposable income. Unfortunately, a significant pick-up in consumer spending did not materialize as readings on retail sales were mediocre and the personal savings rate became the primary beneficiary of lower energy prices. Similarly, outside of the U.S., growth and inflation remained low, and liquidity was on the rise as central banks in Europe and Japan continued to ease policy.

Weak growth and low inflation complicated the policy outlook for the Federal Reserve, as the committee continued to inch towards the beginning of policy normalization. The fixed income market conveyed a different outlook, however, as interest rates declined further given the uncertain outlook for both growth and inflation. The Fed's own forecast for short term interest rates declined as well, yet they continued to guide modest increases in the federal funds rate in 2015. The fixed income market remains skeptical regarding the pace of rate increases relative to the Fed's forecast as we look forward to the remainder of 2015, a dichotomy of views that underscores the "data dependent" nature of monetary policy.

This environment of slower growth and lower interest rates produced solidly, positive absolute returns in the fixed income markets. Furthermore, the uncertainty over monetary policy produced mixed results on an excess returns basis relative to Treasuries over the prior twelve months. This is because securitized sectors generally outperformed Treasuries while corporate bonds trailed.

We continue to believe that the markets could provide tactical challenges for investors to navigate. As we have stated in the past, we also believe that maintaining a long term view and building a portfolio that is diversified across asset classes is an appropriate strategy for investors seeking to weather possible market turbulence.

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. Or, 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 Dyer

President,
Victory Funds


6



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7




The Victory Portfolios  Schedule of Portfolio Investments
Newbridge Large Cap Growth Fund  April 30, 2015

(Amounts in Thousands, Except for Shares)  (Unaudited)

Security Description

 

Shares

 

Value

 

Common Stocks (98.8%)

 

Auto Components (2.1%):

 

Delphi Automotive PLC

   

47,100

   

$

3,909

   

Consumer Staples (6.3%):

 

Costco Wholesale Corp.

   

38,100

     

5,450

   

Monster Beverage Corp. (a)

   

46,025

     

6,310

   
     

11,760

   

Energy (3.6%):

 

EOG Resources, Inc.

   

66,775

     

6,607

   

Financials (6.2%):

 

Affiliated Managers Group, Inc. (a)

   

21,600

     

4,884

   

McGraw-Hill Cos., Inc.

   

18,175

     

1,896

   

The Charles Schwab Corp.

   

153,075

     

4,669

   
     

11,449

   

Health Care (17.4%):

 

Alexion Pharmaceuticals, Inc. (a)

   

29,625

     

5,013

   

Celgene Corp. (a)

   

68,025

     

7,352

   

Centene Corp. (a)

   

53,850

     

3,338

   

Cerner Corp. (a)

   

79,150

     

5,684

   

Gilead Sciences, Inc. (a)

   

71,425

     

7,179

   

IDEXX Laboratories, Inc. (a)

   

27,800

     

3,485

   
     

32,051

   

Hotels Restaurants & Leisure (4.9%):

 

Starbucks Corp.

   

182,400

     

9,043

   

Industrials (4.2%):

 

Southwest Airlines Co.

   

96,375

     

3,909

   

United Rentals, Inc. (a)

   

40,850

     

3,945

   
     

7,854

   

Internet & Catalog Retail (6.1%):

 

Amazon.com, Inc. (a)

   

15,200

     

6,411

   

Priceline.com, Inc. (a)

   

3,950

     

4,889

   
     

11,300

   

Internet Software & Services (7.5%):

 

Facebook, Inc., Class A (a)

   

84,200

     

6,633

   

Google, Inc., Class A (a)

   

13,574

     

7,346

   
     

13,979

   

IT Services (6.8%):

 

Alliance Data Systems Corp. (a)

   

16,350

     

4,861

   

Visa, Inc., Class A

   

117,150

     

7,738

   
     

12,599

   

Road & Rail (3.0%):

 

Canadian Pacific Railway Ltd.

   

29,275

     

5,580

   

See notes to financial statements.


8



The Victory Portfolios  Schedule of Portfolio Investments — continued
Newbridge Large Cap Growth Fund  April 30, 2015

(Amounts in Thousands, Except for Shares)  (Unaudited)

Security Description

 

Shares

 

Value

 

Semiconductors & Semiconductor Equipment (5.9%):

 

NXP Semiconductor NV (a)

   

56,100

   

$

5,392

   

Skyworks Solutions, Inc.

   

60,300

     

5,563

   
     

10,955

   

Software (7.6%):

 

Adobe Systems, Inc. (a)

   

83,300

     

6,336

   

Alibaba Group Holding Ltd., ADR (a)

   

39,750

     

3,231

   

VMware, Inc., Class A (a)

   

51,400

     

4,528

   
     

14,095

   

Specialty Retail (10.1%):

 

Advance Auto Parts, Inc.

   

24,700

     

3,532

   

Sherwin-Williams Co.

   

24,725

     

6,874

   

Tractor Supply Co.

   

63,175

     

5,437

   

Ulta Salon Cosmetics & Fragrance, Inc. (a)

   

18,900

     

2,856

   
     

18,699

   

Technology Hardware, Storage & Peripherals (7.1%):

 

Apple, Inc.

   

105,275

     

13,175

   

Total Common Stocks (Cost $118,509)

   

183,055

   

Investment Companies (0.8%)

 

Federated Treasury Obligations Fund, Institutional Shares, 0.01% (b)

   

1,526,115

     

1,526

   

Total Investment Companies (Cost $1,526)

   

1,526

   

Total Investments (Cost $120,035) — 99.6%

   

184,581

   

Other assets in excess of liabilities — 0.4%

   

709

   

NET ASSETS — 100.00%

 

$

185,290

   

(a)  Non-income producing security.

(b)  Rate disclosed is the daily yield on 4/30/15.

ADR — American Depositary Receipt

PLC — Public Liability Co.

See notes to financial statements.


9



The Victory Portfolios  Schedule of Portfolio Investments
Select Fund  April 30, 2015

(Amounts in Thousands, Except for Shares)  (Unaudited)

Security Description

 

Shares

 

Value

 

Common Stocks (96.2%)

 

Communications Equipment (4.3%):

 

F5 Networks, Inc. (a)

   

1,048

   

$

128

   

Consumer Discretionary (13.5%):

 

Advance Auto Parts, Inc.

   

515

     

74

   

H&R Block, Inc.

   

6,799

     

205

   

PVH Corp.

   

578

     

60

   

Starbucks Corp.

   

1,245

     

62

   
     

401

   

Consumer Staples (7.7%):

 

CVS Caremark Corp.

   

960

     

95

   

Diageo PLC, ADR

   

1,186

     

132

   
     

227

   

Energy (2.3%):

 

Chesapeake Energy Corp.

   

4,242

     

67

   

Financials (15.7%):

 

Bank of New York Mellon Corp.

   

3,743

     

158

   

Citigroup, Inc.

   

3,033

     

162

   

Progressive Corp.

   

5,459

     

146

   
     

466

   

Health Care (11.7%):

 

Baxter International, Inc.

   

2,019

     

139

   

Medtronic PLC

   

1,661

     

123

   

Merck & Co., Inc.

   

1,407

     

84

   
     

346

   

Industrials (11.5%):

 

Nielsen Holdings NV

   

1,998

     

90

   

Precision Castparts Corp.

   

613

     

127

   

United Parcel Service, Inc., Class B

   

1,230

     

123

   
     

340

   

Internet Software & Services (9.2%):

 

Facebook, Inc., Class A (a)

   

1,170

     

92

   

Google, Inc., Class C (a)

   

337

     

181

   
     

273

   

IT Services (5.0%):

 

Visa, Inc., Class A

   

2,253

     

149

   

Materials (4.1%):

 

Air Products & Chemicals, Inc.

   

844

     

121

   

Semiconductors & Semiconductor Equipment (3.7%):

 

Applied Materials, Inc.

   

5,543

     

109

   

Software (3.4%):

 

SAP SE, ADR

   

1,334

     

101

   

See notes to financial statements.


10



The Victory Portfolios  Schedule of Portfolio Investments — continued
Select Fund  April 30, 2015

(Amounts in Thousands, Except for Shares)  (Unaudited)

Security Description

 

Shares

 

Value

 

Technology Hardware, Storage & Peripherals (4.1%):

 

EMC Corp.

   

4,491

   

$

121

   

Total Common Stocks (Cost $2,710)

   

2,849

   

Investment Companies (3.8%)

 

Federated Treasury Obligations Fund, Institutional Shares, 0.01% (b)

   

110,893

     

111

   

Total Investment Companies (Cost $111)

   

111

   

Total Investments (Cost $2,821) — 100.0%

   

2,960

   

Other assets in excess of liabilities — 0.0%

   

1

   

NET ASSETS — 100.00%

 

$

2,961

   

(a)  Non-income producing security.

(b)  Rate disclosed is the daily yield on 4/30/15.

ADR — American Depositary Receipt

PLC — Public Liability Co.

See notes to financial statements.


11



The Victory Portfolios  Schedule of Portfolio Investments
Special Value Fund  April 30, 2015

(Amounts in Thousands, Except for Shares)  (Unaudited)

Security Description

 

Shares

 

Value

 

Common Stocks (99.3%)

 

Communications Equipment (5.7%):

 

Cisco Systems, Inc.

   

144,800

   

$

4,175

   

F5 Networks, Inc. (a)

   

27,200

     

3,319

   
     

7,494

   

Consumer Discretionary (15.2%):

 

Advance Auto Parts, Inc.

   

14,300

     

2,045

   

H&R Block, Inc.

   

122,700

     

3,710

   

Hilton Worldwide Holdings, Inc. (a)

   

129,300

     

3,745

   

Johnson Controls, Inc.

   

59,900

     

3,018

   

Newell Rubbermaid, Inc.

   

68,400

     

2,608

   

PVH Corp.

   

12,800

     

1,323

   

Starbucks Corp.

   

42,000

     

2,082

   

Tractor Supply Co.

   

16,900

     

1,454

   
     

19,985

   

Consumer Staples (8.0%):

 

CVS Caremark Corp.

   

32,900

     

3,267

   

Diageo PLC, ADR

   

23,700

     

2,631

   

The Procter & Gamble Co.

   

25,900

     

2,059

   

Wal-Mart Stores, Inc.

   

32,700

     

2,552

   
     

10,509

   

Energy (5.9%):

 

Chesapeake Energy Corp.

   

96,800

     

1,527

   

Occidental Petroleum Corp.

   

42,600

     

3,412

   

Schlumberger Ltd.

   

14,700

     

1,391

   

Weatherford International PLC (a)

   

95,000

     

1,382

   
     

7,712

   

Financials (12.9%):

 

American Express Co.

   

23,700

     

1,836

   

Bank of America Corp.

   

111,900

     

1,783

   

Bank of New York Mellon Corp.

   

84,400

     

3,573

   

Citigroup, Inc.

   

105,800

     

5,641

   

Progressive Corp.

   

154,300

     

4,114

   
     

16,947

   

Health Care (16.8%):

 

Abbott Laboratories

   

42,700

     

1,982

   

Baxter International, Inc.

   

40,400

     

2,777

   

Cardinal Health, Inc.

   

21,100

     

1,780

   

Eli Lilly & Co.

   

35,200

     

2,530

   

Medtronic PLC

   

56,200

     

4,184

   

Merck & Co., Inc.

   

43,400

     

2,585

   

Perrigo Co. PLC

   

10,600

     

1,943

   

Pfizer, Inc.

   

130,000

     

4,410

   
     

22,191

   

See notes to financial statements.


12



The Victory Portfolios  Schedule of Portfolio Investments — continued
Special Value Fund  April 30, 2015

(Amounts in Thousands, Except for Shares)  (Unaudited)

Security Description

 

Shares

 

Value

 

Industrials (11.8%):

 

Danaher Corp.

   

25,500

   

$

2,088

   

Masco Corp.

   

109,700

     

2,906

   

Nielsen Holdings NV

   

53,400

     

2,400

   

Precision Castparts Corp.

   

16,700

     

3,451

   

Stanley Black & Decker, Inc.

   

19,800

     

1,954

   

United Parcel Service, Inc., Class B

   

27,900

     

2,805

   
     

15,604

   

Internet Software & Services (7.5%):

 

Facebook, Inc., Class A (a)

   

34,400

     

2,710

   

Google, Inc., Class C (a)

   

9,927

     

5,333

   

Twitter, Inc. (a)

   

51,200

     

1,995

   
     

10,038

   

IT Services (2.1%):

 

Visa, Inc., Class A

   

41,000

     

2,708

   

Materials (1.9%):

 

Air Products & Chemicals, Inc.

   

17,300

     

2,481

   

Semiconductors & Semiconductor Equipment (3.0%):

 

Applied Materials, Inc.

   

202,100

     

4,000

   

Software (2.6%):

 

SAP SE, ADR

   

45,100

     

3,414

   

Technology Hardware, Storage & Peripherals (5.9%):

 

Apple, Inc.

   

21,100

     

2,641

   

EMC Corp.

   

189,300

     

5,094

   
     

7,735

   

Total Common Stocks (Cost $131,343)

   

130,818

   

Investment Companies (1.1%)

 

Federated Treasury Obligations Fund, Institutional Shares, 0.01% (b)

   

1,409,837

     

1,410

   

Total Investment Companies (Cost $1,410)

   

1,410

   

Total Investments (Cost $132,753) — 100.4%

   

132,228

   

Liabilities in excess of other assets — (0.4)%

   

(474

)

 

NET ASSETS — 100.00%

 

$

131,754

   

(a)  Non-income producing security.

(b)  Rate disclosed is the daily yield on 4/30/15.

ADR — American Depositary Receipt

PLC — Public Liability Co.

See notes to financial statements.


13




The Victory Portfolios  Schedule of Portfolio Investments
Sycamore Established Value Fund  April 30, 2015

(Amounts in Thousands, Except for Shares)  (Unaudited)

Security Description

 

Shares

 

Value

 

Common Stocks (95.8%)

 

Consumer Discretionary (11.6%):

 

Autoliv, Inc.

   

213,300

   

$

25,323

   

Dollar General Corp.

   

531,300

     

38,631

   

Gannett Co., Inc.

   

557,300

     

19,127

   

Gnc Holdings, Inc.

   

654,000

     

28,155

   

Harley-Davidson, Inc.

   

530,713

     

29,831

   

Johnson Controls, Inc.

   

777,600

     

39,175

   

Nordstrom, Inc.

   

224,900

     

16,993

   

NVR, Inc. (a)

   

17,100

     

22,683

   

Panera Bread Co. (a)

   

196,100

     

35,784

   

Ross Stores, Inc.

   

171,600

     

16,968

   
     

272,670

   

Consumer Staples (5.2%):

 

Casey's General Stores, Inc.

   

330,400

     

27,152

   

Flowers Foods, Inc.

   

1,492,550

     

33,344

   

Ingredion, Inc.

   

228,800

     

18,167

   

J.M. Smucker Co.

   

373,700

     

43,319

   
     

121,982

   

Energy (2.2%):

 

Devon Energy Corp.

   

749,500

     

51,123

   

Financials (23.1%):

 

Alexandria Real Estate Equities, Inc.

   

476,900

     

44,056

   

Alleghany Corp. (a)

   

82,700

     

39,160

   

Citizens Financial Group, Inc.

   

1,648,500

     

42,944

   

DDR Corp.

   

2,502,800

     

42,673

   

Invesco Ltd.

   

860,400

     

35,638

   

Jones Lang LaSalle, Inc.

   

186,600

     

30,987

   

Markel Corp. (a)

   

47,500

     

35,180

   

Marsh & McLennan Cos., Inc.

   

476,100

     

26,738

   

Progressive Corp.

   

1,305,900

     

34,815

   

SunTrust Banks, Inc.

   

1,012,800

     

42,031

   

The Chubb Corp.

   

472,200

     

46,441

   

Unum Group

   

1,222,700

     

41,767

   

Waddell & Reed Financial, Inc.

   

610,200

     

30,095

   

Willis Group Holdings PLC

   

1,126,700

     

54,792

   
     

547,317

   

Health Care (9.5%):

 

Anthem, Inc.

   

124,000

     

18,715

   

Cigna Corp.

   

154,300

     

19,232

   

DENTSPLY International, Inc.

   

753,600

     

38,434

   

Mednax, Inc. (a)

   

386,400

     

27,349

   

Patterson Cos., Inc.

   

1,005,300

     

47,204

   

PerkinElmer, Inc.

   

853,800

     

43,766

   

St. Jude Medical, Inc.

   

404,300

     

28,321

   
     

223,021

   

See notes to financial statements.


14



The Victory Portfolios  Schedule of Portfolio Investments — continued
Sycamore Established Value Fund  April 30, 2015

(Amounts in Thousands, Except for Shares)  (Unaudited)

Security Description

 

Shares

 

Value

 

Industrials (15.8%):

 

Allison Transmission Holding, Inc.

   

893,092

   

$

27,400

   

Avery Dennison Corp.

   

738,500

     

41,053

   

Cintas Corp.

   

282,500

     

22,586

   

Hubbell, Inc., Class B

   

215,500

     

23,453

   

Ingersoll-Rand PLC

   

365,200

     

24,045

   

Kennametal, Inc.

   

804,600

     

28,491

   

Masco Corp.

   

1,577,400

     

41,785

   

Owens Corning, Inc.

   

695,400

     

26,884

   

Parker Hannifin Corp.

   

148,800

     

17,761

   

Republic Services, Inc.

   

711,900

     

28,924

   

Robert Half International, Inc.

   

297,200

     

16,480

   

Rockwell Automation, Inc.

   

307,100

     

36,422

   

Xylem, Inc.

   

1,052,000

     

38,946

   
     

374,230

   

Information Technology (15.3%):

 

Analog Devices, Inc.

   

468,900

     

28,997

   

Avnet, Inc.

   

732,072

     

31,208

   

Booz Allen Hamilton Holdings Corp.

   

1,124,400

     

30,921

   

Broadridge Financial Solutions, Inc.

   

658,200

     

35,489

   

Fidelity National Information Services, Inc.

   

559,000

     

34,932

   

Juniper Networks, Inc.

   

1,297,600

     

34,296

   

Keysight Technologies, Inc. (a)

   

963,100

     

32,225

   

KLA-Tencor Corp.

   

388,000

     

22,814

   

On Semiconductor Corp. (a)

   

2,435,200

     

28,054

   

Synopsys, Inc. (a)

   

898,400

     

42,117

   

TE Connectivity Ltd.

   

157,500

     

10,482

   

Teradata Corp. (a)

   

693,900

     

30,525

   
     

362,060

   

Materials (6.3%):

 

AptarGroup, Inc.

   

457,300

     

28,385

   

International Flavors & Fragrances, Inc.

   

201,100

     

23,076

   

Methanex Corp.

   

428,600

     

25,806

   

Reliance Steel & Aluminum Co.

   

684,300

     

44,288

   

Scotts Co.

   

430,600

     

27,778

   
     

149,333

   

Utilities (6.8%):

 

Alliant Energy Corp.

   

542,500

     

32,805

   

Atmos Energy Corp.

   

651,600

     

35,186

   

DTE Energy Co.

   

411,400

     

32,760

   

Energen Corp.

   

348,500

     

24,803

   

Xcel Energy, Inc.

   

1,006,200

     

34,120

   
     

159,674

   

Total Common Stocks (Cost $1,813,744)

   

2,261,410

   

See notes to financial statements.


15



The Victory Portfolios  Schedule of Portfolio Investments — continued
Sycamore Established Value Fund  April 30, 2015

(Amounts in Thousands, Except for Shares)  (Unaudited)

Security Description

  Shares  

Value

 

Exchange-Traded Funds (1.0%)

 
iShares Russell Midcap Value Index Fund    

319,500

   

$

23,761

   

Total Exchange-Traded Funds (Cost $13,335)

   

23,761

   

Investment Companies (3.0%)

 
Federated Treasury Obligations Fund, Institutional Shares, 0.01% (b)    

69,613,882

     

69,614

   

Total Investment Companies (Cost $69,614)

   

69,614

   

Total Investments (Cost $1,896,693) — 99.8%

   

2,354,785

   

Other assets in excess of liabilities — 0.2%

   

3,797

   

NET ASSETS — 100.00%

 

$

2,358,582

   

(a)  Non-income producing security.

(b)  Rate disclosed is the daily yield on 4/30/15.

PLC — Public Liability Co.

See notes to financial statements.


16



The Victory Portfolios  Schedule of Portfolio Investments
Sycamore Small Company Opportunity Fund  April 30, 2015

(Amounts in Thousands, Except for Shares)  (Unaudited)

Security Description

 

Shares

 

Value

 

Common Stocks (93.5%)

 

Consumer Discretionary (10.1%):

 

Big Lots, Inc.

   

471,400

   

$

21,482

   

Brown Shoe Co., Inc.

   

819,900

     

24,351

   

Brunswick Corp.

   

234,600

     

11,739

   

Callaway Golf Co.

   

2,907,200

     

28,142

   

Core-Mark Holding Co., Inc.

   

225,419

     

11,882

   

Culp, Inc.

   

93,259

     

2,411

   

La-Z-Boy, Inc.

   

927,080

     

24,299

   

Modine Manufacturing Co. (a)

   

1,618,216

     

19,888

   

Oxford Industries, Inc.

   

298,243

     

23,695

   

Steven Madden Ltd. (a)

   

916,500

     

35,761

   

The Men's Wearhouse, Inc.

   

494,700

     

27,995

   

UniFirst Corp.

   

255,700

     

28,953

   
     

260,598

   

Consumer Staples (3.3%):

 

Casey's General Stores, Inc.

   

198,300

     

16,296

   

Flowers Foods, Inc.

   

1,840,225

     

41,110

   

Lancaster Colony Corp.

   

201,100

     

18,031

   

The Andersons, Inc.

   

239,000

     

10,203

   
     

85,640

   

Energy (4.1%):

 

Delek US Holdings, Inc.

   

737,200

     

27,217

   

Helix Energy Solutions Group, Inc. (a)

   

1,641,400

     

27,050

   

Rosetta Resources, Inc. (a)

   

815,400

     

18,616

   

Unit Corp. (a)

   

926,000

     

32,262

   
     

105,145

   

Financials (21.3%):

 

American Financial Group, Inc.

   

403,300

     

25,489

   

AMERISAFE, Inc.

   

305,825

     

13,820

   

Argo Group International Holdings

   

526,496

     

25,793

   

Associated Banc-Corp.

   

1,475,909

     

27,762

   

Brown & Brown, Inc.

   

1,184,300

     

37,838

   

Columbia Banking System, Inc.

   

1,243,200

     

36,922

   

Eagle BanCorp, Inc. (a)

   

685,100

     

25,253

   

Endurance Specialty Holdings Ltd.

   

138,742

     

8,377

   

FNB Corp.

   

2,715,200

     

36,030

   

HCC Insurance Holdings

   

729,800

     

41,570

   

Independent Bank Corp.

   

684,271

     

28,548

   

Infinity Property & Casualty Corp.

   

252,400

     

18,715

   

Lakeland Financial Corp.

   

427,800

     

16,706

   

LaSalle Hotel Properties

   

665,200

     

24,406

   

Old National Bancorp

   

2,002,100

     

27,349

   

PacWest Bancorp

   

608,700

     

27,452

   

Potlatch Corp.

   

862,600

     

31,839

   

Selective Insurance Group, Inc.

   

177,632

     

4,785

   

StanCorp Financial Group, Inc.

   

489,300

     

35,269

   

See notes to financial statements.


17



The Victory Portfolios  Schedule of Portfolio Investments — continued
Sycamore Small Company Opportunity Fund  April 30, 2015

(Amounts in Thousands, Except for Shares)  (Unaudited)

Security Description

 

Shares

 

Value

 

Sterling BanCorp/DE

   

2,397,500

   

$

31,120

   

Symetra Financial Corp.

   

955,900

     

22,703

   
     

547,746

   

Health Care (8.0%):

 

Analogic Corp.

   

290,800

     

24,572

   

Bruker Corp. (a)

   

1,002,236

     

19,002

   

Haemonetics Corp. (a)

   

669,200

     

27,123

   

Hill-Rom Holdings, Inc.

   

607,500

     

30,338

   

ICU Medical, Inc. (a)

   

248,500

     

20,966

   

Integra Lifesciences Holdings (a)

   

563,500

     

33,123

   

Owens & Minor, Inc.

   

1,038,900

     

35,032

   

STERIS Corp.

   

221,128

     

14,705

   
     

204,861

   

Industrials (22.2%):

 

ABM Industries, Inc.

   

1,023,124

     

32,791

   

Altra Industrial Motion Corp.

   

820,221

     

21,629

   

Astec Industries, Inc.

   

417,000

     

17,547

   

Barnes Group, Inc.

   

956,000

     

38,335

   

Beacon Roofing Supply, Inc. (a)

   

946,600

     

28,133

   

Briggs & Stratton Corp.

   

867,700

     

16,964

   

Carlisle Cos., Inc.

   

254,784

     

24,587

   

Celadon Group, Inc.

   

459,100

     

11,863

   

Comfort Systems USA, Inc.

   

815,500

     

16,873

   

EMCOR Group, Inc.

   

919,300

     

41,028

   

Forward Air Corp.

   

462,600

     

23,301

   

FTI Consulting, Inc. (a)

   

504,300

     

20,732

   

GATX Corp.

   

47,900

     

2,606

   

Granite Construction, Inc.

   

968,300

     

33,610

   

Korn/Ferry International

   

793,500

     

25,019

   

Mueller Industries, Inc.

   

791,500

     

27,734

   

Multi-Color Corp.

   

59,900

     

3,761

   

Primoris Services Corp.

   

1,200,516

     

23,086

   

Progressive Waste Solutions Ltd.

   

1,203,600

     

34,796

   

Quanex Building Products Corp.

   

1,007,600

     

19,447

   

Standex International Corp.

   

114,200

     

9,235

   

Sykes Enterprises, Inc. (a)

   

1,506,600

     

37,710

   

Watts Water Technologies, Inc., Class A

   

397,500

     

21,684

   

Werner Enterprises, Inc.

   

633,900

     

17,033

   

Woodward, Inc.

   

476,400

     

22,415

   
     

571,919

   

Information Technology (13.4%):

 

Acxiom Corp. (a)

   

1,049,800

     

18,330

   

Anixter International, Inc. (a)

   

452,300

     

31,932

   

Diebold, Inc.

   

262,700

     

9,134

   

Diodes, Inc. (a)

   

478,800

     

12,794

   

Entegris, Inc. (a)

   

2,285,800

     

30,424

   

Fair Isaac Corp.

   

144,600

     

12,791

   

Ingram Micro, Inc. (a)

   

1,534,800

     

38,615

   

See notes to financial statements.


18



The Victory Portfolios  Schedule of Portfolio Investments — continued
Sycamore Small Company Opportunity Fund  April 30, 2015

(Amounts in Thousands, Except for Shares)  (Unaudited)

Security Description

 

Shares

 

Value

 

Littelfuse, Inc.

   

312,100

   

$

30,583

   

Microsemi Corp. (a)

   

742,200

     

24,760

   

Microstrategy, Inc., Class A (a)

   

123,800

     

22,546

   

MKS Instruments, Inc.

   

859,151

     

29,907

   

Plexus Corp. (a)

   

836,300

     

36,003

   

PTC, Inc. (a)

   

704,800

     

27,023

   

West Pharmaceutical Services, Inc.

   

360,800

     

19,223

   
     

344,065

   

Materials (8.2%):

 

Cabot Corp.

   

707,233

     

30,228

   

Calgon Carbon Corp.

   

1,339,429

     

29,722

   

H.B. Fuller Co.

   

503,900

     

21,048

   

Hawkins, Inc.

   

180,100

     

7,105

   

Kaiser Aluminum Corp.

   

348,900

     

28,041

   

Kapstone Paper & Packaging Corp.

   

541,000

     

15,121

   

Olin Corp.

   

1,005,297

     

29,686

   

Orion Engineered Carbons SA

   

683,300

     

13,379

   

Sensient Technologies Corp.

   

293,300

     

19,170

   

Silgan Holdings, Inc.

   

304,592

     

16,408

   
     

209,908

   

Utilities (2.9%):

 

ALLETE, Inc.

   

500,200

     

25,160

   

El Paso Electric Co.

   

710,100

     

26,423

   

NorthWestern Corp.

   

433,800

     

22,597

   
     

74,180

   

Total Common Stocks (Cost $2,007,942)

   

2,404,062

   

Exchange-Traded Funds (1.8%)

 

iShares Russell 2000 Value Index Fund

   

445,600

     

44,992

   

Total Exchange-Traded Funds (Cost $41,287)

   

44,992

   

Investment Companies (4.4%)

 

Federated Treasury Obligations Fund, Institutional Shares, 0.01% (b)

   

112,683,021

     

112,683

   

Total Investment Companies (Cost $112,683)

   

112,683

   

Total Investments (Cost $2,161,912) — 99.7%

   

2,561,737

   

Other assets in excess of liabilities — 0.3%

   

7,216

   

NET ASSETS — 100.00%

 

$

2,568,953

   

(a)  Non-income producing security.

(b)  Rate disclosed is the daily yield on 4/30/15.

See notes to financial statements.


19



The Victory Portfolios  Schedule of Portfolio Investments
Expedition Emerging Markets Small Cap Fund  April 30, 2015

(Amounts in Thousands, Except for Shares)  (Unaudited)

Security Description

 

Shares

  Fair
Value(a)
 

Common Stocks (95.8%)

 

Brazil (2.2%):

 

Financials (1.4%):

 

Valid Solucoes SA

   

10,900

   

$

170

   

Health Care (0.8%):

 

Qualicorp SA (b)

   

12,700

     

102

   
     

272

   

Cayman Islands (1.5%):

 

Consumer Staples (1.5%):

 

Nagacorp Ltd.

   

258,000

     

186

   

Chile (0.1%):

 

Information Technology (0.1%):

 

Sonda SA

   

7,694

     

18

   

China (7.5%):

 

Consumer Discretionary (3.0%):

 

Cosmo Lady (China) Holdings Co. Ltd. (b) (c)

   

223,000

     

188

   

Shenzhou International Group

   

39,000

     

184

   
     

372

   

Energy (1.5%):

 

Hilong Holdings Ltd.

   

514,000

     

194

   

Health Care (0.3%):

 

China Animal Healthcare Ltd. (d)

   

60,000

     

35

   

Industrials (1.2%):

 

Boer Power Holdings Ltd.

   

82,000

     

158

   

Information Technology (1.5%):

 

21vianet Group, Inc., ADR (b)

   

9,152

     

188

   
     

947

   

Hong Kong (7.5%):

 

Consumer Discretionary (1.4%):

 

Haier Electronics Group Co. Ltd.

   

63,000

     

181

   

Information Technology (3.1%):

 

PAX Global Technology Ltd. (b)

   

134,000

     

195

   

Tongda Group Holdings Ltd.

   

1,080,000

     

194

   
     

389

   

Telecommunication Services (1.6%):

 

Citic Telecom International Holdings Ltd.

   

470,000

     

195

   

Utilities (1.4%):

 

NewOcean Energy Holdings Ltd.

   

328,000

     

182

   
     

947

   

See notes to financial statements.


20



The Victory Portfolios  Schedule of Portfolio Investments — continued
Expedition Emerging Markets Small Cap Fund  April 30, 2015

(Amounts in Thousands, Except for Shares)  (Unaudited)

Security Description

 

Shares

  Fair
Value(a)
 

India (11.6%):

 

Consumer Staples (2.0%):

 

CCL Products India Ltd.

   

41,757

   

$

125

   

Kaveri Seed Co. Ltd.

   

9,702

     

128

   
     

253

   

Health Care (3.6%):

 

Ajanta Pharma Ltd.

   

8,235

     

164

   

Marksans Pharma Ltd.

   

145,285

     

132

   

Torrent Pharmaceuticals Ltd.

   

8,003

     

151

   
     

447

   

Industrials (3.7%):

 

Century Plyboards India Ltd.

   

44,416

     

143

   

Gateway Distriparks Ltd.

   

7,683

     

42

   

Kajaria Ceramics Ltd.

   

9,249

     

112

   

Sadbhav Engineering Ltd.

   

6,391

     

30

   

Simplex Infrastructures Ltd.

   

20,639

     

139

   
     

466

   

Materials (2.3%):

 

PI Industries Ltd.

   

14,462

     

150

   

Sharda Cropchem Ltd. (b)

   

28,682

     

139

   
     

289

   
     

1,455

   

Indonesia (5.5%):

 

Consumer Discretionary (1.1%):

 

PT Matahari Department Store TBK

   

101,200

     

137

   

Industrials (2.0%):

 

PT Blue Bird TBK (b)

   

151,600

     

96

   

PT Pembangunan Perumahan Persero TBK (b)

   

517,600

     

156

   
     

252

   

Materials (0.1%):

 

PT Wijaya Karya Beton TBK

   

221,300

     

17

   

Telecommunication Services (2.3%):

 

PT Link Net TBK (b)

   

304,800

     

132

   

PT Tower Bersama Infrastructure TBK

   

228,000

     

149

   
     

281

   
     

687

   

Korea, Republic Of (17.1%):

 

Consumer Discretionary (5.0%):

 

Hana Tour Service, Inc.

   

1,914

     

227

   

Hanssem Co. Ltd.

   

1,367

     

253

   

KT Skylife Co. Ltd.

   

8,872

     

144

   
     

624

   

See notes to financial statements.


21



The Victory Portfolios  Schedule of Portfolio Investments — continued
Expedition Emerging Markets Small Cap Fund  April 30, 2015

(Amounts in Thousands, Except for Shares)  (Unaudited)

Security Description

 

Shares

  Fair
Value(a)
 

Consumer Staples (2.8%):

 

Cosmax, Inc.

   

1,625

   

$

220

   

Muhak Co. Ltd. (b)

   

3,974

     

134

   
     

354

   

Health Care (3.1%):

 

Medy-Tox, Inc.

   

652

     

225

   

Osstem Implant Co. Ltd. (b)

   

3,662

     

160

   
     

385

   

Industrials (1.5%):

 

KEPCO Plant Service & Engineering Co. Ltd.

   

2,054

     

186

   

Information Technology (3.6%):

 

EO Technics Co. Ltd.

   

1,321

     

136

   

Isc Co. Ltd.

   

4,420

     

177

   

LG Innotek Co. Ltd.

   

1,498

     

139

   
     

452

   

Materials (1.1%):

 

LG Hausys Ltd.

   

899

     

140

   
     

2,141

   

Malaysia (6.3%):

 

Consumer Discretionary (1.1%):

 

Prestariang Berhad

   

196,800

     

138

   

Financials (0.3%):

 

Allianz Malaysia Berhad

   

9,400

     

34

   

Information Technology (3.5%):

 

GHL Systems Berhad (b)

   

449,350

     

141

   

IFCA MSC Berhad (b)

   

286,000

     

124

   

Unisem (M) Berhad

   

260,400

     

174

   
     

439

   

Materials (1.4%):

 

Cahya Mata Sarawak Berhad

   

122,400

     

174

   
     

785

   

Philippines (3.7%):

 

Consumer Staples (2.3%):

 

RFM Corp.

   

907,700

     

105

   

Robinsons Retail Holdings, Inc.

   

96,290

     

188

   
     

293

   

Industrials (1.4%):

 

Concepcion Industrial Corp.

   

125,170

     

178

   
     

471

   

Poland (1.7%):

 

Industrials (1.7%):

 

Kruk SA (b)

   

2,502

     

107

   

PKP Cargo SA

   

4,311

     

101

   
     

208

   

See notes to financial statements.


22



The Victory Portfolios  Schedule of Portfolio Investments — continued
Expedition Emerging Markets Small Cap Fund  April 30, 2015

(Amounts in Thousands, Except for Shares)  (Unaudited)

Security Description

 

Shares

  Fair
Value(a)
 

Singapore (2.5%):

 

Consumer Discretionary (1.1%):

 

Bumitama Agri Ltd.

   

187,000

   

$

139

   

Materials (1.4%):

 

Midas Holdings Ltd.

   

593,900

     

174

   
     

313

   

South Africa (4.4%):

 

Consumer Discretionary (1.4%):

 

Mr Price Group Ltd.

   

8,161

     

175

   

Consumer Staples (2.0%):

 

Clicks Group Ltd.

   

18,922

     

145

   

Tiger Brands Ltd.

   

3,907

     

102

   
     

247

   

Health Care (1.0%):

 

Life Healthcare Group Holdings Pte Ltd.

   

37,551

     

128

   
     

550

   

Taiwan (11.0%):

 

Consumer Discretionary (4.3%):

 

Hota Industrial Manufacturing Co. Ltd.

   

86,254

     

217

   

Nan Liu Enterprise Co. Ltd.

   

26,000

     

160

   

Poya Co. Ltd.

   

15,110

     

162

   
     

539

   

Health Care (1.1%):

 

Intai Technology Corp.

   

24,000

     

135

   

Industrials (3.4%):

 

King Slide Works Co. Ltd.

   

8,000

     

126

   

San Shing Fastech Corp.

   

59,450

     

151

   

Sporton International, Inc.

   

27,000

     

154

   
     

431

   

Information Technology (2.2%):

 

ADLINK Technology, Inc.

   

51,980

     

163

   

Epistar Corp.

   

72,000

     

113

   
     

276

   
     

1,381

   

Taiwan, Province Of China (2.6%):

 

Consumer Discretionary (1.5%):

 

Eclat Textile Co. Ltd.

   

8,000

     

107

   

Feng Tay Enterparise Co. Ltd.

   

14,000

     

86

   
     

193

   

Consumer Staples (1.1%):

 

Makalot Industrial Co. Ltd.

   

17,000

     

133

   
     

326

   

See notes to financial statements.


23



The Victory Portfolios  Schedule of Portfolio Investments — continued
Expedition Emerging Markets Small Cap Fund  April 30, 2015

(Amounts in Thousands, Except for Shares)  (Unaudited)

Security Description

  Shares or
Principal
Amount
  Fair
Value(a)
 

Thailand (4.3%):

 

Consumer Discretionary (2.4%):

 

MC Group Public Co. Ltd. — NVDR

   

332,500

   

$

141

   

Officemate Public Co. Ltd. — NVDR

   

88,400

     

159

   
     

300

   

Consumer Staples (0.4%):

 

Thai Union Frozen Products Public Co. Ltd.

   

80,700

     

50

   

Health Care (1.5%):

 

Chularat Hospital Public Co. Ltd. — NVDR

   

316,200

     

186

   
     

536

   

Turkey (3.4%):

 

Consumer Discretionary (1.1%):

 

Tofas Turk Otomobil Fabrikasi As

   

21,844

     

134

   

Industrials (1.3%):

 

Aselsan Elektronik Sanayi ve Ticaret AS

   

30,909

     

161

   

Materials (1.0%):

 

Akcansa Cimento

   

21,261

     

131

   
     

426

   

United Arab Emirates (2.9%):

 

Consumer Staples (1.2%):

 

Agthia Group PJSC

   

74,287

     

155

   

Health Care (1.7%):

 

NMC Health PLC

   

18,362

     

215

   
     

370

   

Total Common Stocks (Cost $11,157)

   

12,019

   

Cash Equivalents (3.0%)

 

United States (3.0%):

 

Citibank Money Market Deposit Account, 0.02% (e)

 

$

375

     

375

   

Total Cash Equivalents (Cost $375)

   

375

   

Total Investments (Cost $11,532) — 98.8%

   

12,394

   

Other assets in excess of liabilities — 1.2%

   

156

   

NET ASSETS — 100.00%

 

$

12,550

   

(a)  All securities, except those traded on exchanges in Brazil, Chile and 21vianet Group, Inc. under China were fair valued at 4/30/15.

(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.

(d)  The Fund's Adviser has deemed this security to be illiquid based upon procedures approved by the Board of Trustees. At April 30, 2015, illiquid securities were 0.30% of the Fund's net assets.

(e)  Rate periodically changes. Rate disclosed is the daily yield on 4/30/15.

ADR — American Depositary Receipt

NVDR — Non-Voting Depository Receipt

PLC — Public Liability Co.

See notes to financial statements.


24




The Victory Portfolios  Schedule of Portfolio Investments
Newbridge Global Equity Fund  April 30, 2015

(Amounts in Thousands, Except for Shares)  (Unaudited)

Security Description

 

Shares

  Fair
Value(a)
 

Common Stocks (94.8%)

 

Australia (0.6%):

 

Financials (0.6%):

 

Dexus Property Group

   

13,283

   

$

77

   

Belgium (2.7%):

 

Consumer Staples (1.2%):

 

Anheuser-Busch InBev NV

   

1,221

     

148

   

Financials (1.5%):

 

KBC Groep NV (b)

   

2,750

     

181

   
     

329

   

Brazil (1.4%):

 

Consumer Staples (0.9%):

 

Ambev SA, ADR

   

17,175

     

109

   

Financials (0.5%):

 

Itau Unibanco Holding SA, ADR

   

4,827

     

62

   
     

171

   

Canada (2.7%):

 

Consumer Discretionary (1.3%):

 

Canadian Pacific Railway Ltd.

   

280

     

53

   

Magna International, Inc.

   

2,094

     

106

   
     

159

   

Consumer Staples (1.4%):

 

Alimentation Couche-Tard, Inc., Class B

   

4,648

     

178

   
     

337

   

China (2.1%):

 

Consumer Discretionary (0.2%):

 

Vipshop Holdings Ltd., ADR (b)

   

1,026

     

29

   

Financials (0.7%):

 

China Construction Bank Corp.

   

91,000

     

88

   

Industrials (0.3%):

 

Zhejiang Expressway Co. Ltd., Class H

   

20,000

     

32

   

Information Technology (0.9%):

 

Tencent Holdings Ltd.

   

5,500

     

114

   
     

263

   

Denmark (2.2%):

 

Health Care (2.2%):

 

Novo Nordisk A/S, Class B

   

4,792

     

268

   

Finland (0.7%):

 

Financials (0.7%):

 

Sampo Oyj, Class A

   

1,870

     

91

   

See notes to financial statements.


25



The Victory Portfolios  Schedule of Portfolio Investments — continued
Newbridge Global Equity Fund  April 30, 2015

(Amounts in Thousands, Except for Shares)  (Unaudited)

Security Description

 

Shares

  Fair
Value(a)
 

Germany (2.5%):

 

Consumer Discretionary (0.9%):

 

Continental AG (b)

   

470

   

$

111

   

Financials (1.6%):

 

Allianz SE

   

1,151

     

197

   
     

308

   

Hong Kong (2.6%):

 

Energy (0.6%):

 

CNOOC Ltd.

   

45,000

     

77

   

Financials (2.0%):

 

AIA Group Ltd.

   

36,000

     

240

   
     

317

   

Indonesia (0.7%):

 

Financials (0.7%):

 

PT Bank Rakyat

   

98,600

     

88

   

Ireland (1.0%):

 

Industrials (1.0%):

 

Experian PLC

   

6,964

     

124

   

Ireland (Republic of) (0.9%):

 

Energy (0.9%):

 

Dragon Oil PLC

   

12,285

     

117

   

Italy (0.8%):

 

Energy (0.8%):

 

Eni SpA

   

4,924

     

95

   

Japan (7.0%):

 

Consumer Discretionary (5.1%):

 

Bridgestone Corp.

   

5,900

     

247

   

Panasonic Corp.

   

12,900

     

185

   

Toyota Motor Corp.

   

3,000

     

208

   
     

640

   

Financials (1.9%):

 

Sumitomo Mitsui Financial Group, Inc.

   

5,300

     

231

   
     

871

   

Netherlands (3.6%):

 

Energy (1.9%):

 

Royal Dutch Shell PLC

   

7,573

     

243

   

Information Technology (1.7%):

 

NXP Semiconductor NV (b)

   

2,141

     

206

   
     

449

   

Republic of Korea (South) (1.7%):

 

Information Technology (1.7%):

 

Samsung Electronics Co. Ltd.

   

157

     

206

   

See notes to financial statements.


26



The Victory Portfolios  Schedule of Portfolio Investments — continued
Newbridge Global Equity Fund  April 30, 2015

(Amounts in Thousands, Except for Shares)  (Unaudited)

Security Description

 

Shares

  Fair
Value(a)
 

Singapore (1.6%):

 

Financials (1.6%):

 

DBS Group Holdings Ltd.

   

12,509

   

$

199

   

Sweden (0.5%):

 

Financials (0.5%):

 

Svenska Handelsbanken AB

   

1,473

     

68

   

Switzerland (6.3%):

 

Financials (3.1%):

 

ACE Ltd.

   

1,333

     

143

   

Swiss Re AG

   

2,780

     

247

   
     

390

   

Health Care (1.7%):

 

Roche Holding AG

   

720

     

207

   

Information Technology (1.5%):

 

TE Connectivity Ltd.

   

2,787

     

186

   
     

783

   

Thailand (0.4%):

 

Financials (0.4%):

 

Krung Thai Bank NVDR

   

89,100

     

54

   

Turkey (1.2%):

 

Industrials (1.2%):

 

TAV Havalimanlari Holding AS (b)

   

17,154

     

151

   

United Arab Emirates (1.1%):

 

Financials (1.1%):

 

Dubai Islamic Bank

   

72,569

     

136

   

United Kingdom (5.8%):

 

Consumer Discretionary (1.9%):

 

British Sky Broadcasting Group PLC

   

5,696

     

94

   

Compass Group PLC

   

3,369

     

60

   

Delphi Automotive PLC

   

1,029

     

85

   
     

239

   

Consumer Staples (1.4%):

 

Unilever PLC

   

4,028

     

177

   

Materials (2.5%):

 

Antofagasta PLC

   

14,888

     

177

   

BHP Billiton PLC

   

5,493

     

131

   
     

308

   
     

724

   

United States (44.7%):

 

Consumer Discretionary (7.4%):

 

Dollar General Corp.

   

1,304

     

95

   

Hanesbrands, Inc.

   

4,541

     

141

   

See notes to financial statements.


27



The Victory Portfolios  Schedule of Portfolio Investments — continued
Newbridge Global Equity Fund  April 30, 2015

(Amounts in Thousands, Except for Shares)  (Unaudited)

Security Description

 

Shares

  Fair
Value(a)
 

Starbucks Corp.

   

1,344

   

$

66

   

The Home Depot, Inc.

   

3,129

     

335

   

The Walt Disney Co.

   

2,540

     

276

   
     

913

   

Consumer Staples (3.5%):

 

Costco Wholesale Corp.

   

1,289

     

185

   

Mead Johnson Nutrition Co.

   

1,359

     

130

   

Pilgrim's Pride Corp.

   

4,751

     

117

   
     

432

   

Energy (5.4%):

 

Cameron International Corp. (b)

   

1,863

     

102

   

Chevron Corp.

   

1,319

     

146

   

EOG Resources, Inc.

   

1,962

     

194

   

Halliburton Co.

   

2,006

     

98

   

Valero Energy Corp.

   

2,243

     

128

   
     

668

   

Financials (2.1%):

 

Discover Financial Services

   

1,027

     

60

   

The Goldman Sachs Group, Inc.

   

1,014

     

199

   
     

259

   

Health Care (7.9%):

 

Anthem, Inc.

   

1,501

     

227

   

Celgene Corp. (b)

   

1,124

     

121

   

Cerner Corp. (b)

   

2,376

     

171

   

DaVita Healthcare Partners, Inc. (b)

   

962

     

78

   

Gilead Sciences, Inc. (b)

   

1,515

     

152

   

IDEXX Laboratories, Inc. (b)

   

342

     

43

   

McKesson Corp.

   

833

     

186

   
     

978

   

Industrials (6.3%):

 

General Dynamics Corp.

   

1,666

     

229

   

Lear Corp.

   

1,072

     

119

   

Orbital ATK, Inc.

   

1,038

     

76

   

Southwest Airlines Co.

   

5,843

     

237

   

United Parcel Service, Inc., Class B

   

1,194

     

120

   
     

781

   

Information Technology (6.1%):

 

Apple, Inc.

   

3,101

     

388

   

Skyworks Solutions, Inc.

   

1,717

     

158

   

Visa, Inc., Class A

   

3,268

     

216

   
     

762

   

Materials (4.9%):

 

Crown Holdings, Inc. (b)

   

4,824

     

262

   

Graphic Packaging Holding Co.

   

13,964

     

197

   

Westlake Chemical Corp.

   

1,937

     

151

   
     

610

   

See notes to financial statements.


28



The Victory Portfolios  Schedule of Portfolio Investments — continued
Newbridge Global Equity Fund  April 30, 2015

(Amounts in Thousands, Except for Shares)  (Unaudited)

Security Description

  Shares or
Principal
Amount
  Fair
Value(a)
 

Utilities (1.1%):

 

NRG Yield, Inc., Class A

   

2,783

   

$

137

   
     

5,540

   

Total Common Stocks (Cost $9,724)

   

11,766

   

Exchange-Traded Funds (2.7%)

 

Australia (1.8%):

 

Vanguard Australian Shares Index ETF

   

3,856

     

223

   

United States (0.9%):

 

iShares MSCI India ETF

   

3,620

     

107

   

Total Exchange-Traded Funds (Cost $341)

   

330

   

Cash Equivalents (1.8%)

 

United States (1.8%):

 

Citibank Money Market Deposit Account, 0.02% (c)

 

$

221

     

221

   

Total Cash Equivalents (Cost $221)

   

221

   

Total Investments (Cost $10,286) — 99.3%

   

12,317

   

Other assets in excess of liabilities — 0.7%

   

91

   

NET ASSETS — 100.00%

 

$

12,408

   

(a)  All securities, except those traded on exchanges in the United States (including ADRs), Brazil, Canada, NXP Semiconductor NV under Netherlands, Delphi Automotive PLC under United Kingdom and ACE Ltd. and TE Connectivity Ltd. under Switzerland were fair valued at 4/30/15.

(b)  Non-income producing security.

(c)  Rate periodically changes. Rate disclosed is the daily yield on 4/30/15.

ADR — American Depositary Receipt

ETF — Exchange-Traded Fund

NVDR — Non-Voting Depository Receipt

PLC — Public Liability Co.

See notes to financial statements.


29



The Victory Portfolios  Schedule of Portfolio Investments
Fund for Income  April 30, 2015

(Amounts in Thousands, Except for Shares)  (Unaudited)

Security Description

  Principal
Amount
 

Value

 

Government National Mortgage Association (88.8%)

 

Multi-family (4.9%):

 

Collateralized Mortgage Obligations (4.4%):

 
Government National Mortgage Assoc.
Series 2006-66, Class B, 5.00% (a), 9/16/41
 

$

287

   

$

287

   

Series 2007-46, Class D, 5.33% (a), 5/16/46

   

539

     

541

   

Series 2010-122, Class AC, 7.00%, 2/16/40

   

2,000

     

2,016

   

Series 2010-136, Class BH, 7.00%, 11/16/40

   

4,962

     

5,472

   

Series 2010-140, Class AC, 7.00%, 12/16/37

   

4,730

     

4,895

   

Series 2010-148, Class AC, 7.00% (a), 12/16/50

   

(b)

   

(b)

 

Series 2010-155, Class BH, 7.00%, 6/16/39

   

7,410

     

7,762

   

Series 2011-15, Class BA, 7.00%, 10/16/33

   

5,000

     

5,082

   

Series 2012-33, Class AB, 7.00%, 3/16/46

   

7,349

     

8,292

   

Series 2012-67, Class AF, 7.00%, 4/15/44

   

3,013

     

3,258

   
     

37,605

   

Pass-throughs (0.5%):

 
Government National Mortgage Assoc.
7.49%, 8/15/20 – 11/15/20
   

273

     

283

   

7.50%, 8/15/21

   

139

     

153

   

6.00%, 1/15/22

   

146

     

162

   

7.92%, 7/15/23

   

472

     

490

   

8.00%, 7/15/24 – 11/15/33

   

1,470

     

1,524

   

8.60%, 5/15/27

   

436

     

439

   

7.75%, 6/15/30 – 9/15/33

   

773

     

792

   

8.25%, 9/15/30

   

232

     

240

   
     

4,083

   

Single Family (83.9%):

 

Collateralized Mortgage Obligations (5.0%):

 
Government National Mortgage Assoc.
Series 1994-7, Class PQ, 6.50%, 10/16/24
   

470

     

535

   

Series 1997-8, Class PN, 7.50%, 5/16/27

   

74

     

85

   

Series 1998-14, Class PH, 6.50%, 6/20/28

   

254

     

297

   

Series 1998-19, Class ZA, 6.50%, 4/20/28

   

157

     

182

   

Series 1998-23, Class ZB, 6.50%, 6/20/28

   

129

     

150

   

Series 1999-4, Class ZB, 6.00%, 2/20/29

   

330

     

371

   

Series 1999-40, Class ZW, 7.50%, 11/20/29

   

242

     

282

   

Series 2000-9, Class Z, 8.00%, 6/20/30

   

111

     

133

   

Series 2001-10, Class PE, 6.50%, 3/16/31

   

452

     

521

   

Series 2001-15, Class ZH, 6.00%, 4/20/31

   

518

     

583

   

Series 2001-21, Class PE, 6.50%, 5/16/31

   

382

     

440

   

Series 2001-41, Class PC, 6.50%, 8/20/31

   

196

     

199

   

Series 2002-22, Class GF, 6.50%, 3/20/32

   

78

     

93

   

Series 2002-33, Class ZJ, 6.50%, 5/20/32

   

221

     

265

   

Series 2002-40, Class UK, 6.50%, 6/20/32

   

335

     

396

   

Series 2002-45, Class QE, 6.50%, 6/20/32

   

140

     

167

   

Series 2002-47, Class ZA, 6.50%, 7/20/32

   

429

     

512

   

Series 2005-72, Class H, 11.50%, 11/16/17

   

10

     

11

   

Series 2005-74, Class HB, 7.50%, 9/16/35

   

195

     

226

   

See notes to financial statements.


30



The Victory Portfolios