N-CSR 1 tm2322881d8_ncsr.htm N-CSR

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number:              811-04852

 

Victory Portfolios

(Exact name of registrant as specified in charter)

 

4900 Tiedeman Road, 4th Floor, Brooklyn, Ohio   44144
(Address of principal executive offices)   (Zip code)

 

Citi Fund Services Ohio, Inc., 4400 Easton Commons, Suite 200, Columbus, OH 43219

(Name and address of agent for service)

 

Registrant’s telephone number, including area code: 800-539-3863

 

Date of fiscal year end: June 30

 

Date of reporting period: June 30, 2023

 

 

 

 

 

 

Item 1. Reports to Stockholders.

 

 

 

 

June
30,
2023
Annual
Report
Victory
Integrity
Discovery
Fund
Victory
Integrity
Mid-Cap
Value
Fund
Victory
Integrity
Small-Cap
Value
Fund
Victory
Integrity
Small/Mid-Cap
Value
Fund
Victory
Munder
Multi-Cap
Fund
Victory
S&P
500
Index
Fund
Victory
Munder
Mid-Cap
Core
Growth
Fund
Victory
Trivalent
International
Fund
Core
Equity
Victory
Trivalent
International
Small-Cap
Fund
Victory
INCORE
Total
Return
Bond
Fund
vcm.com
News,
Information
And
Education
24
Hours
A
Day,
7
Days
A
Week
The
Victory
Capital
website
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
interest-
ed
in
planning
tools,
or
an
investment
professional,
vcm.com
has
what
you
seek.
Visit
us
anytime.
We’re
always
open.
TABLE
OF
CONTENTS
Victory
Portfolios
1
Shareholder
Letter
(Unaudited)
3
Managers’
Commentary
/
Investment
Overview
(Unaudited)
11
Investment
Objectives
and
Portfolio
Holdings
(Unaudited)
25
Schedules
of
Portfolio
Investments
Victory
Integrity
Discovery
Fund
35
Victory
Integrity
Mid-Cap
Value
Fund
38
Victory
Integrity
Small-Cap
Value
Fund
41
Victory
Integrity
Small/Mid-Cap
Value
Fund
44
Victory
Munder
Multi-Cap
Fund
47
Victory
S&P
500
Index
Fund
50
Victory
Munder
Mid-Cap
Core
Growth
Fund
59
Victory
Trivalent
International
Fund
Core
Equity
61
Victory
Trivalent
International
Small-Cap
Fund
72
Victory
INCORE
Total
Return
Bond
Fund
81
Financial
Statements
Statements
of
Assets
and
Liabilities
89
Statements
of
Operations
93
Statements
of
Changes
in
Net
Assets
97
Financial
Highlights
110
Notes
to
Financial
Statements
153
Report
of
Independent
Registered
Public
Accounting
Firm
168
Supplemental
Information
(Unaudited)
169
Trustee
and
Officer
Information
169
Proxy
Voting
and
Portfolio
Holdings
Information 
171
Expense
Examples
171
Additional
Federal
Income
Tax
Information
173
Liquidity
Risk
Management
Program
174
Privacy
Policy
(inside
back
cover)
2
Call
Victory
at:
800-539-FUND
(800-539-3863)
800-235-8396
for
Member
Class
Visit
our
website
at:
vcm.com
IRA
DISTRIBUTION
WITHHOLDING
DISCLOSURE
We
generally
must
withhold
federal
income
tax
at
a
rate
of
10%
of
the
taxable
portion
of
your
distribution
and,
if
you
live
in
a
state
that
requires
state
income
tax
withholding,
at
your
state’s
tax
rate.
However,
you
may
elect
not
to
have
withholding
apply
or
to
have
income
tax
withheld
at
a
higher
rate.
Any
withholding
election
that
you
make
will
apply
to
any
subsequent
distribution
unless
and
until
you
change
or
revoke
the
election.
If
you
wish
to
make
a
withholding
election,
or
change
or
revoke
a
prior
withholding
election,
call
800-539-3863
(800-235-8396
for
Member
Class)
and
form
W-4P
(OMB
No.
1545-0074
withholding
certificate
for
pension
or
annuity
payments)
will
be
electronically
sent.
If
you
do
not
have
a
withholding
election
in
place
by
the
date
of
a
distribution,
federal
income
tax
will
be
withheld
from
the
taxable
portion
of
your
distribution
at
a
rate
of
10%.
If
you
must
pay
estimated
taxes,
you
may
be
subject
to
estimated
tax
penalties
if
your
estimated
tax
payments
are
not
sufficient
and
sufficient
tax
is
not
withheld
from
your
distribution.
For
more
specific
information,
please
consult
your
tax
adviser.
The
Funds
are
distributed
by
Victory
Capital
Services,
Inc.
Victory
Capital
Management
Inc.
is
the
investment
adviser
to
the
Funds
and
receives
fees
from
the
Funds
for
performing
services
for
the
Funds.
This
report
is
not
authorized
for
distribution
to
prospective
investors
unless
preceded
or
accompanied
by
a
current
prospectus
of
the
Victory
Funds.
For
additional
information
about
any
Victory
Fund,
including
fees,
expenses,
and
risks,
view
our
prospectus
online
at
vcm.com
or
call
800-539-3863
(800-235-8396
for
Member
Class).
Read
it
carefully
before
you
invest
or
send
money.
The
information
in
this
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
INVESTMENTS
INVOLVE
RISK
PRINCIPAL
LOSS
IS
POSSIBLE
3
Victory
Funds
Letter
to
Shareholders
(Unaudited)
Dear
Shareholder,
Our
annual
reporting
period
for
the
12
months
ended
June
30,
2023,
has
been
a
tale
of
two
markets.
The
dichotomy
has
been
nothing
short
of
remarkable.
Think
back
to
the
latter
half
of
2022.
This
was
a
very
difficult
time
for
investors,
marked
by
an
array
of
challenges
that
punished
both
bond
and
stock
markets.
The
U.S.
Federal
Reserve
(the
“Fed”)
was
in
the
midst
of
a
series
of
rate
hikes—more
aggressive
than
many
investors
had
ever
experienced.
Inflation
was
raging
and
conjuring
up
memories
of
the
1970s.
And
if
that
wasn’t
enough,
a
terrible
war
was
taking
place
in
Eastern
Europe,
while
tensions
between
the
world’s
two
largest
economic
powers,
the
United
States
and
China,
were
also
on
the
rise.
It
was
not
exactly
a
constructive
environment
for
investors,
and
all
of these
issues
created
headwinds
for
both
stocks
and
bonds.
It’s
not
often
that
stocks
and
bonds
decline
in
tandem,
and
the
traditional
diversified
portfolio
of
60%
equities/40%
fixed
income
was
suffering
through
one
of
its
worst
periods
on
record.
But
when
the
calendar
year
flipped,
so
did
the
markets.
During
the
first
six
months
of
2023,
financial
markets
exhibited
greater
stability
and
less
volatility.
Equities
(including
domestic,
international
and
emerging
markets)
regained
their
footing
and
rebounded.
In
the
United
States,
some
of
the
most
beaten-down
growth
sectors
that
were
punished
during
the
period
of
sharply
rising
interest
rates
led
the
market
higher.
The
market’s
resiliency
and
strong
rebound
during
the
first
two
quarters
of
2023
surprised
many
pundits.
After
all,
there
were
ample
challenges
that
could
have
undermined
this
rally,
including
unusual
turmoil
within
the
banking
sector
in
March
2023
that
resulted
in
the
collapse
of
a
few
regional
banks.
Naturally,
this
ratcheted
up
volatility
for
a
spell,
but
the
Fed
took
the
necessary
steps
to
restore
confidence
in
the
banking
sector
and
avoided
a
wider
contagion.
It
also
helped
that
the
Fed
paused
its
rate
hikes
as
inflation
data
finally
cooled.
Through
all
the
ups
and
downs
in
these
two
very
different
environments,
the
S&P
500
®
Index,
the
most
widely
followed
index
representing the
domestic
stock
market,
managed
to
deliver
an
impressive
total
return
of
more
than
19%
for
our
annual
reporting
period
ended
June
30,
2023.
The
Bloomberg
U.S.
Aggregate
Bond
Index—a
proxy
for
a
diversified
fixed
income
portfolio
and
one
that
many
investors
and
institutions
follow
closely—was
basically
unchanged
during
the
same
period
at
0.94%
(despite
the
volatility).
We
don’t
deny
that
this
past
annual
reporting
period
was
difficult.
We
realize
that
the
bouts
of
stomach-churning
volatility
can
take
a
toll
on
investors’
psyche.
But
even
when
markets
snap
back
sharply
as
they
have,
investors
often
wonder
if
they
have
missed
an
opportunity.
This
reminds
us
of
two
enduring
realities:
1)
financial
markets
are
dynamic
and
apt
to
change
abruptly;
2)
it’s
vital
to
remain
calm
and
rational
whenever
faced
with
those
inevitable
times
of
turmoil.
Fortunately,
we
think
that
investors
can
take
comfort
knowing
that
all
our
Victory
Capital
independent
investment
franchises
have
experience
managing
portfolios
through
a
variety
of
market
environments.
Our
investment
professionals
remain
calm
during
turbulent
financial
markets,
and
we
think
it’s
imperative
that
investors
do
the
same.
Of
course,
there
are
still
uncertainties
ahead.
For
example, is
the
Fed
finished
with
its
rate
hikes?
Will
the
impact
of
tighter
lending
standards
ultimately
result
in
slower
growth
and
lower
corporate
profits?
Is
there
another
banking
crisis
lurking?
Nobody
really
knows
what
the
future
will
bring.
That’s
why
we
continue
to
advocate
for
a
long-term
plan,
a
well-diversified
portfolio
across
asset
classes
and
investment
types,
and
a
clear
understanding
of
individual
risk
tolerances.
These,
in
our
opinion,
are
the
key
ingredients
for
staying
the
course
and
progressing
on
investment
goals.
4
On
the
following
pages
you
will
find
information
relating
to
your
Victory
Funds
investment.
If
you
have
any
questions,
we
encourage
you
to
contact
your
financial
advisor. If
you
invest
with
us
directly,
you
may
call
800-539-3863
(800-235-8396
for
Member
Class) or
visit
our
website
at
vcm.com.
From
all
of
us
here
at
Victory
Capital,
thank
you
for
letting
us
help
you
work
toward
your
investment
goals.
James
De
Vries
President,
Victory
Funds
5
Victory
Integrity
Discovery
Fund
Managers’
Commentary
(Unaudited)
What
were
the
market
conditions
during
the
reporting
period?
U.S.
equity
markets
ended
2022
with
losses
driven
by
aggressive
interest
rates
to
curb
inflation,
recession
fears,
the
Russia-
Ukraine
war,
and
rising
concerns
over
COVID-19
cases
in
China.
The
same
headlines
persisted
as
the
calendar
turned
to
2023.
In
March,
enhanced
volatility
entered
the
market
as
a
sudden
and
unexpected
bank
crisis
unfolded.
Equities
mounted
a
comeback
in
the
latter
part
of
March
after
the
month
began
with
the
failure
of
two
regional
banks,
a
forced
takeover
of
Credit
Suisse,
and
a
flight
of
deposits
from
smaller
banks
to
big
institutions.
The
U.S.
government’s
backstop
of
the
deposits
of
the
two
failed
regional
banks
and
the
setup
of
a
special
lending
facility
for
other
banks
helped
stem
the
crisis.
Equity
markets
rallied
throughout
the
second
quarter
of
2023
despite
inflation
that
persisted
and
the
U.S.
Federal
Reserve’s
expectation
to
keep
rates
higher
for
longer.
From
a
market
capitalization
perspective,
micro-cap
equities
underperformed
their
small-,
mid-
and
large-cap
peers.
The
top-performing
sectors
within
the
Russell
Microcap
Value
®
Index
(the
“Index”)
were
Energy
and
Industrials,
while
Consumer
Staples,
Utilities,
and
Financials
were
the
weakest-performing
sectors.
Micro-cap
value
stocks
underperformed
micro-cap
growth
stocks.
How
did
Victory
Integrity
Discovery
Opportunity
Fund
(the
“Fund”)
perform
during
the
reporting
period?
The
Fund
returned
6.11%
(Class
A
at
net
asset
value)
for
the
fiscal
year
ended
June
30,
2023,
outperforming
the
Index,
which
returned
2.86%
for
the
period. 
What
strategies
did
you
employ
during
the
reporting
period?
Security
selection
in
the
Technology,
Industrials,
and
Consumer
Discretionary
sectors
were
the
prominent
contributors
to
Fund
performance.
Security
selection
in
the
Financials,
Health
Care,
and
Energy
sectors
hurt
Fund
performance. 
Sector
weights
were
positive
contributors
to
Fund
performance
relative
to
the
Index
largely
due
to
our
overweight
in
the
Industrials
sector
and
our
underweight
positions
in
the
Consumer
Staples
and
Financials
sectors.
The
Fund
holdings
on
average
had
a
larger
beta
and
lower
volatility
than
the
Index,
and
both
were
tailwinds.
After
benefitting
from
a
return
to
value
in
the
aftermath
of
the
pandemic,
the
Fund
has
had
to
navigate
in
an
environment
where
growth
has
outperformed
value.
Market
sentiment
suggests
it’s
back
to
a
zero
interest
rate
policy
(“ZIRP”),
which
has
benefitted
the
technology-heavy
Nasdaq-100
®
Index.
In
the
fourth
quarter
of
2022,
we
rebalanced
the
Fund’s
portfolio,
attempting
to
strike
a
more
barbell
approach.
We
took
some
profits
in
our
outperformers
and
reinvested
in
our
laggards.
Entering
2023,
we
believed
this
was
still
the
correct
strategy
(and
still
do).
There
are
many
uncertainties,
and
we
don’t
see
glaring
value
discrepancies
on
which
to
make
a
big
bet.
Areas
of
the
market
that
appear
cheap
lack
a
catalyst,
while
those
with
catalysts
look
fairly
valued.
The
valuation
spreads
we
use
to
help
position
us
on
our
value
wave
mostly
look
average.
We
will
continue
to
monitor
the
three
pieces
of
the
investment
puzzle:
Right
Company,
Right
Price,
and
Right
Time,
along
with
our
valuation
spreads
looking
for
opportunities
to
add
value
where
we
believe
the
risk/
reward
is
in
our
clients’
favor.
Our
thesis
has
been
a
simple
one.
Normal
interest
rates
mean
a
reversion
to
normal
asset
class
behavior.
Smaller
companies
and
value
have
underperformed
for
a
historically
long
period
of
time
that
also
coincides
with
ZIRP.
This
trend
had
been
reversing
as
rates
moved
higher.
We
believe
it
will
continue.
The
portfolios
are
not
positioned
for
a
return
to
ZIRP.
However,
we
have
tried
to
strike
a
balance
between
cyclical
and
more
stable
companies
in
the
portfolio.
So
far,
this
positioning
has
served
us
well.
We
will
continue
to
monitor
the
market
for
what
we
see
as
the
best
risk/reward
opportunities
for
our
clients,
while
striving
to
maintain
balance
relative
to
the
macro
environment.
6
Victory
Integrity
Discovery
Fund
Investment
Overview
(Unaudited)
The
performance
data
quoted
represents
past
performance
and
current
returns
may
be
lower
or
higher.
The
investment
return
and
principal
value
will
fluctuate
so
that
an
investor’s
shares,
when
redeemed,
may
be
worth
more
or
less
than
the
original
cost.
To
obtain
performance
information
current
to
the
most
recent
month’s
end,
please
visit
vcm.com.
The
maximum
offering
price ("MOP")
figures
reflect
a
maximum
sales
charge
of
5.75%
for
Class
A.
Class
C
is
not
subject
to
an
initial
sales
charge,
but
is
subject
to
a
deferred
sales
charge
of
1.00%
on
shares
redeemed
within
one
year
of
purchase.
Net
Asset
Value
does
not
reflect
sales
charges.
Total
return
measures
the
price
change
in
a
share
assuming
the
reinvestment
of
all
net
investment
income
and
realized
capital
gain
distributions,
if
any.
The
total
returns
quoted
do
not
reflect
adjustments
made
to
the
enclosed
financial
statements
in
accordance
with
U.S.
Generally
Accepted
Accounting
Principles
or
the
deduction
of
taxes
that
a
shareholder
would
pay
on
net
investment
income
and
realized
capital
gain
distributions,
including
reinvested
distributions,
or
redemptions
of
shares.
The
total
return
figures
set
forth
above
include
all
waivers
of
fees.
Without
such
fee
waivers,
the
total
returns
would
have
been
lower.
Victory
Integrity
Discovery
Fund —
Growth
of
$10,000
1
The
Russell
Microcap
®
Value
Index
is
a
capitalization-weighted
index
that
measures
the
performance
of
the
smallest
1,000
securities
in
the
Russell
2000
®
Index,
plus
the
next
1,000
smallest
eligible
securities
by
market
cap.
(The
Russell
2000
®
Index
is
a
capitalization-weighted
index
that
measures
the
performance
of
approximately
2,000
of
the
smallest
companies
in
the
Russell
3000
®
Index,
an
index
representing
approximately
98%
of
the
investable
U.S.
equity
market.)
This
index
does
not
include
the
effect
of
sales
charges,
commissions,
expenses,
or
taxes,
is
not
representative
of
the
Fund,
and
it
is
not
possible
to
invest
directly
in
an
index.
The
graph
reflects
investment
growth
of
a
hypothetical
$10,000
investment
in
the
Fund. 
The
graph
and
table
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
Fund
distributions
or
the
redemption
of
shares. 
Past
performance
is
not
indicative
of
future
results.
Average
Annual
Total
Return
Year
Ended
June
30,
2023
Class
A
Class
C
Class
R
Class
Y
Member
Class
INCEPTION
DATE
12/26/96
3/31/97
7/29/04
12/26/96
11/3/20
Net
Asset
Value
Maximum
Offering
Price
Net
Asset
Value
Contingent
Deferred
Charges
Net
Asset
Value
Net
Asset
Value
Net
Asset
Value
Russell
Microcap
®
Value
Index
1
One
Year
6.11%
0.01%
5.17%
4.26%
5.56%
6.29%
6.15%
2.86%
Five
Year
2.70%
1.49%
1.83%
1.83%
2.20%
2.92%
N/A
2.70%
Ten
Year
8.03%
7.40%
7.35%
7.35%
7.53%
8.28%
N/A
N/A
Since
Inception
N/A
N/A
N/A
N/A
N/A
N/A
18.12%
N/A
7
Victory
Integrity
Mid-Cap
Value
Fund
Managers’
Commentary
(Unaudited)
What
were
the
market
conditions
during
the
reporting
period?
U.S.
equity
markets
ended
2022
with
losses
driven
by
aggressive
interest
rates
to
curb
inflation,
recession
fears,
the
Russia-
Ukraine
war,
and
rising
concerns
over
COVID-19
cases
in
China.
The
same
headlines
persisted
as
the
calendar
turned
to
2023.
In
March,
enhanced
volatility
entered
the
market
as
a
sudden
and
unexpected
bank
crisis
unfolded.
Equities
mounted
a
comeback
in
the
latter
part
of
March
after
the
month
began
with
the
failure
of
two
regional
banks,
a
forced
takeover
of
Credit
Suisse,
and
a
flight
of
deposits
from
smaller
banks
to
big
institutions.
The
U.S.
government’s
backstop
of
the
deposits
of
the
two
failed
regional
banks
and
the
setup
of
a
special
lending
facility
for
other
banks
helped
stem
the
crisis.
Equity
markets
rallied
throughout
the
second
quarter
of
2023
despite
inflation
that
persisted
and
the
U.S.
Federal
Reserve’s
expectation
to
keep
rates
higher
for
longer.
From
a
market
capitalization
perspective,
mid-cap
equities
outperformed
their
small-cap
peers
and
underperformed
their
large-
cap
peers.
The
top-performing
sectors
within
the
Russell
Midcap
®
Value
Index
(the
“Index”)
were
Industrials,
Consumer
Discretionary,
and
Technology,
while
Real
Estate
was
the
weakest-performing
sector.
Mid-cap
value
stocks
underperformed
mid-cap
growth
stocks.
How
did
Victory
Integrity
Mid-Cap
Value
Fund
(the
“Fund”)
perform
during
the
reporting
period?
The
Fund
returned
13.83%
(Class
A
at
net
asset
value)
for
the
fiscal
year
ended
June
30,
2023,
outperforming
the
Index,
which
returned
10.50%
for
the
period.
What
strategies
did
you
employ
during
the
reporting
period?
Security
selection
in
the
Industrials,
Technology,
and
Consumer
Staples
sectors
were
the
main
contributors
that
resulted
in
Fund
outperformance.
Security
selection
in
the
Financials
and
Energy
sectors
hurt
Fund
performance.
Sector
weights
were
positive
contributors
to
the
Fund’s
performance
due
to
our
overweight
to
the
Industrials
sector
and
our
underweights
to
the
Real
Estate
and
Financials
sectors.
The
Fund
holdings
on
average
had
higher
beta
and
a
lower
market
capitalization
relative
to
the
Index,
and
both
were
tailwinds.
After
benefitting
from
a
return
to
value
in
the
aftermath
of
the
pandemic,
the
Fund
has
had
to
navigate
in
an
environment
where
growth
has
outperformed
value.
Market
sentiment
suggests
it’s
back
to
a
zero
interest
rate
policy
(“ZIRP”),
which
has
benefitted
the
technology-heavy
Nasdaq-100
®
Index.
In
the
fourth
quarter
of
2022,
we
rebalanced
the
Fund’s
portfolio,
attempting
to
strike
a
more
barbell
approach.
We
took
some
profits
in
our
outperformers
and
reinvested
in
our
laggards.
Entering
2023,
we
believed
this
was
still
the
correct
strategy
(and
still
do).
There
are
many
uncertainties,
and
we
don’t
see
glaring
value
discrepancies
on
which
to
make
a
big
bet.
Areas
of
the
market
that
appear
cheap
lack
a
catalyst,
while
those
with
catalysts
look
fairly
valued.
The
valuation
spreads
we
use
to
help
position
us
on
our
value
wave
mostly
look
average.
We
will
continue
to
monitor
the
three
pieces
of
the
investment
puzzle:
Right
Company,
Right
Price,
and
Right
Time,
along
with
our
valuation
spreads
looking
for
opportunities
to
add
value
where
we
believe
the
risk/
reward
is
in
our
clients’
favor.
Our
thesis
has
been
a
simple
one.
Normal
interest
rates
mean
a
reversion
to
normal
asset
class
behavior.
Smaller
companies
and
value
have
underperformed
for
a
historically
long
period
of
time
that
also
coincides
with
ZIRP.
This
trend
had
been
reversing
as
rates
moved
higher.
We
believe
it
will
continue.
The
Fund
is
not
positioned
for
a
return
to
ZIRP.
However,
we
have
tried
to
strike
a
balance
between
cyclical
and
more
stable
companies
in
the
Fund.
So
far,
this
positioning
has
served
us
well.
We
will
continue
to
monitor
the
market
for
what
we
see
as
the
best
risk/reward
opportunities
for
our
clients,
while
striving
to
maintain
balance
relative
to
the
macro
environment.
8
Victory
Integrity
Mid-Cap
Value
Fund
Investment
Overview
(Unaudited)
The
performance
data
quoted
represents
past
performance
and
current
returns
may
be
lower
or
higher.
The
investment
return
and
principal
value
will
fluctuate
so
that
an
investor’s
shares,
when
redeemed,
may
be
worth
more
or
less
than
the
original
cost.
To
obtain
performance
information
current
to
the
most
recent
month’s
end,
please
visit
vcm.com.
The
maximum
offering
price ("MOP")
figures
reflect
a
maximum
sales
charge
of
5.75%
for
Class
A.
Class
C
is
not
subject
to
an
initial
sales
charge,
but
is
subject
to
a
deferred
sales
charge
of
1.00%
on
shares
redeemed
within
one
year
of
purchase.
Net
Asset
Value
does
not
reflect
sales
charges.
Total
return
measures
the
price
change
in
a
share
assuming
the
reinvestment
of
all
net
investment
income
and
realized
capital
gain
distributions,
if
any.
The
total
returns
quoted
do
not
reflect
adjustments
made
to
the
enclosed
financial
statements
in
accordance
with
U.S.
Generally
Accepted
Accounting
Principles
or
the
deduction
of
taxes
that
a
shareholder
would
pay
on
net
investment
income
and
realized
capital
gain
distributions,
including
reinvested
distributions,
or
redemptions
of
shares.
The
total
return
figures
set
forth
above
include
all
waivers
of
fees.
Without
such
fee
waivers,
the
total
returns
would
have
been
lower.
Victory
Integrity
Mid-Cap
Value
Fund —
Growth
of
$10,000
1
The
Russell
Midcap
®
Value
Index
is
an
unmanaged Index
that
measures
the
performance
of
the
mid-cap
value
segment
of
the
U.S.
equity
universe.
It
includes
those
Russell
Midcap
®
Index
companies
with
relatively
lower
price-to-book
ratios
and
lower
forecasted
growth
values.
Index
results
assume
the
reinvestment
of
dividends
paid
on
the
stocks
constituting
the
index.
This
Index
does
not
include
the
effect
of
sales
charges,
commissions,
expenses,
or
taxes,
is
not
representative
of
the
Fund
and
it
is
not
possible
to
invest
directly
in
an
index.
The
graph
reflects
investment
growth
of
a
hypothetical
$10,000
investment
in
the
Fund. 
The
graph
and
table
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
Fund
distributions
or
the
redemption
of
shares. 
Past
performance
is
not
indicative
of
future
results.
Average
Annual
Total
Return
Year
Ended
June
30,
2023
Class
A
Class
C
Class
R6
Class
Y
Member
Class
INCEPTION
DATE
7/1/11
11/4/19
12/14/15
7/1/11
11/2/20
Net
Asset
Value
Maximum
Offering
Price
Net
Asset
Value
Contingent
Deferred
Charges
Net
Asset
Value
Net
Asset
Value
Net
Asset
Value
Russell
Midcap
®
Value
Index
1
One
Year
13.83%
7.27%
12.98%
11.98%
14.29%
14.14%
14.02%
10.50%
Five
Year
7.84%
6.57%
N/A
N/A
8.26%
8.10%
N/A
6.84%
Ten
Year
9.36%
8.71%
N/A
N/A
N/A
9.64%
N/A
9.03%
Since
Inception
N/A
N/A
8.75%
8.75%
10.45%
N/A
17.36%
N/A
9
Victory
Integrity
Small-Cap
Value
Fund
Managers’
Commentary
(Unaudited)
What
were
the
market
conditions
during
the
reporting
period?
U.S.
equity
markets
ended
2022
with
losses
driven
by
aggressive
interest
rates
to
curb
inflation,
recession
fears,
the
Russia-
Ukraine
war,
and
rising
concerns
over
COVID-19
cases
in
China.
The
same
headlines
persisted
as
the