497 1 a16-20100_1497.htm 497

 

Victory Funds

 

Victory RS Partners Fund

Victory RS Global Fund

Victory RS Value Fund

Victory Sophus Emerging Markets Fund

Victory RS Large Cap Alpha Fund

Victory Sophus Emerging Markets Small Cap Fund

Victory RS Investors Fund

Victory Sophus China Fund

Victory Global Natural Resources Fund

Victory INCORE Investment Quality Bond Fund

Victory RS Small Cap Growth Fund

Victory INCORE Low Duration Bond Fund

Victory RS Select Growth Fund

Victory High Yield Fund

Victory RS Mid Cap Growth Fund

Victory Tax-Exempt Fund

Victory RS Growth Fund

Victory High Income Municipal Bond Fund

Victory RS Science and Technology Fund

Victory Floating Rate Fund

Victory RS Small Cap Equity Fund

Victory Strategic Income Fund

Victory RS International Fund

 

 

Supplement dated November 3, 2016

to the Prospectus dated July 29, 2016 (“Prospectus”)

 

The following information hereby supersedes or supplements information contained in the Prospectus and is effective on November 7, 2016.

 

1.              Transfer Agent change. FIS Investor Services LLC (“FIS”) will assume the role of transfer agent for the Funds.  All references to Boston Financial Data Services, Inc. or BFDS in the Prospectus are hereby deleted and replaced with references to FIS.

 

2.              Phone number change. Victory Funds’ shareholder service team can be contacted by phone at 800-539-FUND (800-539-3863). All references in the Prospectus to 800-766-FUND and 800-766-3863 are hereby deleted.

 

3.              Contact information change. The addresses with respect to providing instructions for the purchase or sale of Fund shares or to request the SAI or shareholders reports, as stated on pp. 233, 235-236 and the back cover page of the Prospectus, are hereby updated as follows:

 

Regular U.S. Mail:

Victory Funds

 

P.O. Box 182593

 

Columbus, OH 43218-2593

 

 

Overnight Mail:

Victory Funds

 

c/o FIS TA Operations

 

4249 Easton Way, Suite 400

 

Columbus, OH 43219

 

 

Wires:

Please call the Victory Funds shareholder service team at 800-539-3863 to notify the Fund that you intend to purchase shares by wire and to verify wire instructions.

 

4.              SIMPLE IRAs. For SIMPLE IRAs, please use the contact information provided above.

 


 

5.              Expense Examples. Certain information in the tables under “Example” for the applicable Fundsnoted below is hereby deleted and replaced by the following:

 

Victory RS Investors Fund

 

 

 

3 Year

 

5 Years

 

10 Years

 

Class A

 

$

989

 

$

1,312

 

$

2,226

 

Class C

 

$

670

 

$

1,178

 

$

2,573

 

Class R

 

$

594

 

$

1,021

 

$

2,212

 

Class Y

 

$

349

 

$

627

 

$

1,418

 

 

The following example makes the same assumptions as the example above, except that it assumes you do not sell your shares at the end of the period.

 

 

 

3 Year

 

5 Years

 

10 Years

 

Class C

 

$

670

 

$

1,178

 

$

2,573

 

 

Victory RS Growth Fund

 

 

 

3 Year

 

5 Years

 

10 Years

 

Class A

 

$

913

 

$

1,172

 

$

1,911

 

Class C

 

$

614

 

$

1,065

 

$

2,316

 

Class R

 

$

547

 

$

954

 

$

2,092

 

Class Y

 

$

277

 

$

498

 

$

1,134

 

 

The following example makes the same assumptions as the example above, except that it assumes you do not sell your shares at the end of the period.

 

 

 

3 Year

 

5 Years

 

10 Years

 

Class C

 

$

614

 

$

1,065

 

$

2,316

 

 

 

Victory RS Small Cap Equity Fund

 

 

 

5 Years

 

10 Years

 

Class A

 

$

1,232

 

$

2,021

 

Class C

 

$

1,212

 

$

2,655

 

Class R

 

$

944

 

$

2,052

 

Class Y

 

$

579

 

$

1,283

 

 

The following example makes the same assumptions as the example above, except that it assumes you do not sell your shares at the end of the period.

 

 

 

5 Years

 

10 Years

 

Class C

 

$

1,212

 

$

2,655

 

 


 

Victory RS International Fund

 

 

 

3 Year

 

5 Years

 

10 Years

 

Class A

 

$

1,037

 

$

1,430

 

$

2,527

 

Class C

 

$

738

 

$

1,347

 

$

2,994

 

Class R

 

$

617

 

$

1,126

 

$

2,526

 

Class Y

 

$

426

 

$

816

 

$

1,910

 

 

The following example makes the same assumptions as the example above, except that it assumes you do not sell your shares at the end of the period.

 

 

 

3 Year

 

5 Years

 

10 Years

 

Class C

 

$

738

 

$

1,347

 

$

2,994

 

 

Victory RS Global Fund

 

 

 

3 Year

 

5 Years

 

10 Years

 

Class A

 

$

1,009

 

$

1,342

 

$

2,282

 

Class C

 

$

699

 

$

1,220

 

$

2,650

 

Class R

 

$

569

 

$

980

 

$

2,126

 

Class Y

 

$

374

 

$

680

 

$

1,550

 

 

The following example makes the same assumptions as the example above, except that it assumes you do not sell your shares at the end of the period.

 

 

 

3 Year

 

5 Years

 

10 Years

 

Class C

 

$

699

 

$

1,220

 

$

2,650

 

 

Victory Sophus Emerging Markets Small Cap Fund

 

 

 

3 Year

 

5 Years

 

10 Years

 

Class A

 

$

1,156

 

$

1,656

 

$

3,025

 

Class C

 

$

828

 

$

1,478

 

$

3,221

 

Class Y

 

$

521

 

$

960

 

$

2,182

 

 

The following example makes the same assumptions as the example above, except that it assumes you do not sell your shares at the end of the period.

 

 

 

3 Year

 

5 Years

 

10 Years

 

Class C

 

$

828

 

$

1,478

 

$

3,221

 

 

Victory INCORE Investment Quality Bond Fund

 

 

 

3 Year

 

5 Years

 

10 Years

 

Class A

 

$

496

 

$

735

 

$

1,420

 

Class C

 

$

564

 

$

979

 

$

2,138

 

Class R

 

$

431

 

$

770

 

$

1,727

 

Class Y

 

$

230

 

$

426

 

$

993

 

 


 

The following example makes the same assumptions as the example above, except that it assumes you do not sell your shares at the end of the period.

 

 

 

3 Year

 

5 Years

 

10 Years

 

Class C

 

$

564

 

$

979

 

$

2,138

 

 

Victory High Yield Fund

 

 

 

3 Year

 

5 Years

 

10 Years

 

Class A

 

$

526

 

$

785

 

$

1,524

 

Class C

 

$

554

 

$

979

 

$

2,162

 

Class R

 

$

431

 

$

749

 

$

1,652

 

Class Y

 

$

261

 

$

477

 

$

1,101

 

 

The following example makes the same assumptions as the example above, except that it assumes you do not sell your shares at the end of the period.

 

 

 

3 Year

 

5 Years

 

10 Years

 

Class C

 

$

554

 

$

979

 

$

2,162

 

 

Victory High Income Municipal Bond Fund

 

 

 

3 Year

 

5 Years

 

10 Years

 

Class A

 

$

464

 

$

679

 

$

1,296

 

Class C

 

$

511

 

$

901

 

$

1,995

 

Class Y

 

$

198

 

$

367

 

$

855

 

 

The following example makes the same assumptions as the example above, except that it assumes you do not sell your shares at the end of the period.

 

 

 

3 Year

 

5 Years

 

10 Years

 

Class C

 

$

511

 

$

901

 

$

1,995

 

 

Victory Strategic Income Fund

 

 

 

3 Year

 

5 Years

 

10 Years

 

Class A

 

$

516

 

$

775

 

$

1,515

 

Class C

 

$

569

 

$

1,009

 

$

2,231

 

Class R

 

$

433

 

$

761

 

$

1,688

 

Class Y

 

$

260

 

$

483

 

$

1,127

 

 

The following example makes the same assumptions as the example above, except that it assumes you do not sell your shares at the end of the period.

 

 

 

3 Year

 

5 Years

 

10 Years

 

Class C

 

$

569

 

$

1,009

 

$

2,231

 

 


 

6.              Purchase and Sale of Fund Shares. The paragraph below the “Investment Minimums” table which refers to Boston Financial Data Services for the Fixed Income Funds is deleted in its entirety and replaced by the following:

 

You may redeem your shares on any day the Fund is open for business. Redemption requests may be made by telephone (with prior appropriate approval) or by mail.

 

7.              Additional Information About Risks. Certain information in the principal risks table on page 187 is hereby updated as follows:

 

  

 

Small
Cap
Equity

 

International

 

Global

 

Emerging
Markets

 

Emerging
Markets
Small Cap

 

China

 

Investment
Quality
Bond

 

Low
Duration
Bond

 

High
Yield

 

Tax-
Exempt

 

High
Income
Municipal
Bond

 

Floating
Rate

 

Strategic
Income

 

Emerging Market Risk

 

 

 

X

 

X

 

X

 

X

 

X

 

 

 

 

 

 

 

 

 

 

 

 

 

X

 

Equity Securities Risk

 

X

 

X

 

X

 

X

 

X

 

X

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management Risk

 

X

 

X

 

X

 

X

 

X

 

X

 

X

 

X

 

X

 

X

 

X

 

X

 

X

 

Mortgage- and Asset-backed Securities Risk

 

 

 

 

 

 

 

 

 

 

 

 

 

X

 

X

 

X

 

 

 

 

 

 

 

X

 

Non-Diversified Risk

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overweighting Risk

 

X

 

X

 

X

 

X

 

X

 

X

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In addition, the following principal risk is added at the top of page 196:

 

Management Risk

 

The investment process used by a Fund’s investment team may produce incorrect judgments about the value of a particular asset and may not produce the desired results.

 

8.              Victory RS Global Fund Class R Performance.  The following is added as a new paragraph under “Fund Performance”:

 

Class R performance information that is published in other materials, including the Fund’s website, and includes performance for periods after August 15, 2016 reflects capital contributions by the Adviser in the form of expense reimbursements that were made at a time when the total assets of Class R shares were small due to a large shareholder redemption.  Without taking into consideration the effect of these expense reimbursements, the performance of the Class R shares for the same periods would have been lower.  Performance would be similar, exclusive of any class-specific differences in fees and expenses, to the performance of the Fund’s other share classes, which more accurately reflect the Fund’s performance during such periods.  The impact of the expense reimbursements on performance in future periods will vary due to fluctuations in Class R total assets and the amount of any reimbursements.

 

If you wish to obtain more information, please call the Victory Funds at 800-539-3863.

 

PLEASE RETAIN THIS SUPPLEMENT FOR YOUR FUTURE REFERENCE.

 


 

Victory Funds

 

Victory RS Partners Fund

Victory RS Global Fund

Victory RS Value Fund

Victory Sophus Emerging Markets Fund

Victory RS Large Cap Alpha Fund

Victory Sophus Emerging Markets Small Cap Fund

Victory RS Investors Fund

Victory Sophus China Fund

Victory Global Natural Resources Fund

Victory INCORE Investment Quality Bond Fund

Victory RS Small Cap Growth Fund

Victory INCORE Low Duration Bond Fund

Victory RS Select Growth Fund

Victory High Yield Fund

Victory RS Mid Cap Growth Fund

Victory Tax-Exempt Fund

Victory RS Growth Fund

Victory High Income Municipal Bond Fund

Victory RS Science and Technology Fund

Victory Floating Rate Fund

Victory RS Small Cap Equity Fund

Victory Strategic Income Fund

Victory RS International Fund

 

 

Supplement dated November 3, 2016 to the Statement of Additional Information

dated July 29, 2016, as revised on September 12, 2016 (“SAI”)

 

The following information hereby supersedes or supplements information contained in the SAI and is effective on November 7, 2016.

 

1.              Transfer Agent change. FIS Investor Services LLC, 4249 Eason Way, Suite 400, Columbus, Ohio 43219, will assume the role of transfer agent for the Funds.

 

2.              Custodian change. Citibank, N.A., 388 Greenwich Street, New York, NY 10013, will assume the role of custodian for the Funds and will cash settle trades made by the Funds.

 

3.              Administrator and Fund Accountant change. Victory Capital Management Inc., 4900 Tiedeman Road, 4th Floor, Brooklyn, Ohio 44144, will assume the role of administrator and fund accountant for the Funds.

 

4.              Sub-Administrator and Sub-Fund Accountant. Citi Fund Services Ohio, Inc., 3435 Stelzer Road, Columbus, Ohio 43219, will assume the role of sub-administrator and sub-fund accountant for the Funds.

 

If you wish to obtain more information, please call the Victory Funds at 800-539-3863.

 

PLEASE RETAIN THIS SUPPLEMENT FOR YOUR FUTURE REFERENCE.