# EDGAR Filing Document

**Accession Number:** 0000802716
**File Stem:** 0001193125-26-236867
**Filing Date:** 2026-5
**Character Count:** 517973
**Document Hash:** 2c8b7f99d16e212270c19a6500d1dcd1
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-236867.hdr.sgml**: 20260522

**ACCESSION NUMBER**: 0001193125-26-236867

**CONFORMED SUBMISSION TYPE**: 485BPOS

**PUBLIC DOCUMENT COUNT**: 40

**FILED AS OF DATE**: 20260522

**DATE AS OF CHANGE**: 20260522

**EFFECTIVENESS DATE**: 20260525

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** VICTORY PORTFOLIOS
- **CENTRAL INDEX KEY:** 0000802716

**ORGANIZATION NAME:**
- **EIN:** 316364605
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1031

**FILING VALUES:**
- **FORM TYPE:** 485BPOS
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-04852
- **FILM NUMBER:** 261013765

**BUSINESS ADDRESS:**
- **STREET 1:** 4900 TIEDEMAN ROAD
- **CITY:** BROOKLYN
- **STATE:** OH
- **ZIP:** 44144
- **BUSINESS PHONE:** 6144708000

**MAIL ADDRESS:**
- **STREET 1:** 4900 TIEDEMAN ROAD
- **CITY:** BROOKLYN
- **STATE:** OH
- **ZIP:** 44144

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SOCIETY FUNDS
- **DATE OF NAME CHANGE:** 19940906
**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** VICTORY PORTFOLIOS
- **CENTRAL INDEX KEY:** 0000802716

**ORGANIZATION NAME:**
- **EIN:** 316364605
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1031

**FILING VALUES:**
- **FORM TYPE:** 485BPOS
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 033-08982
- **FILM NUMBER:** 261013764

**BUSINESS ADDRESS:**
- **STREET 1:** 4900 TIEDEMAN ROAD
- **CITY:** BROOKLYN
- **STATE:** OH
- **ZIP:** 44144
- **BUSINESS PHONE:** 6144708000

**MAIL ADDRESS:**
- **STREET 1:** 4900 TIEDEMAN ROAD
- **CITY:** BROOKLYN
- **STATE:** OH
- **ZIP:** 44144

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SOCIETY FUNDS
- **DATE OF NAME CHANGE:** 19940906

## Series and Classes Contracts Data

### Victory Trivalent Emerging Markets Small-Cap Fund (Series ID: S000104649)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000275285 | Class Y      |  |

?xml version='1.0' encoding='ASCII'? Trivalent EMSC Class Y

**Securities Act Registration No. 33-8982**

**Investment Company Act Registration No. 811-4852**

**As filed with the Securities and Exchange Commission on May 22, 2026**

------

**U.S. SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

------

**FORM N-1A**

**REGISTRATION STATEMENT**

**UNDER THE SECURITIES ACT OF 1933**

☒

**Pre-Effective Amendment No. ___**

**Post-Effective Amendment No. 209**

**And**

**REGISTRATION STATEMENT** 

***UNDER THE INVESTMENT COMPANY ACT OF 1940***

☒

**Amendment No. 210**

------

**Victory Portfolios**

**(Exact name of Registrant as Specified in Trust Instrument)**

------

**15935 La Cantera Parkway, San Antonio, Texas 78256**

**(Address of Principal Executive Offices)**

**(800) 539-3863**

**(Area Code and Telephone Number)**

------

**Copy to:** 

---

| | |
|:---|:---|
| **Thomas Dusenberry**<br> **Victory Portfolios**<br> **15935 La Cantera Parkway**<br> **San Antonio, Texas 78256**<br>| **Matthew J. Kutner**<br> **Sidley Austin LLP**<br> **787 Seventh Avenue**<br> **New York, New York 10019**<br>|

---

**(Name and Address of Agent for Service)**

------

Approximate Date of Proposed Public Offering: As soon as practicable after this registration statement becomes effective.

It is proposed that this filing will become effective:

☐

Immediately upon filing pursuant to paragraph (b)

☒

On May 25, 2026 pursuant to paragraph (b)

☐

60 days after filing pursuant to paragraph (a)(1)

☐

On (date) pursuant to paragraph (a)(1)

☐

75 days after filing pursuant to paragraph (a)(2)

☐

On (date) pursuant to paragraph (a)(2) of Rule 485.

If appropriate, check the following box:

☐

This post-effective amendment designates a new effective date for a previously filed post-effective amendment.

------

![](imgedaac32f1.gif)

**May 25, 2026**

Prospectus

---

| | |
|:---|:---|
| Victory Trivalent Emerging Markets Small-Cap Fund | Victory Trivalent Emerging Markets Small-Cap Fund |
|  | **Class Y**  |
|  | VTESX |

---

The Securities and Exchange Commission has not approved or disapproved these securities or determined whether this Prospectus is accurate or complete. Any representation to the contrary is a criminal offense.

vcm.com

800-539-FUND (800-539-3863)

------

![](imgedaac32f1.gif)

**Table of Contents**

---

| | |
|:---|:---|
| **[Fund Summary](#xx_58fbdfc1-c5d4-4d04-b08b-95627de3cd64_1)**  | 1  |
| [Investment Objective](#xx_58fbdfc1-c5d4-4d04-b08b-95627de3cd64_1) | 1  |
| [Fund Fees and Expenses](#xx_58fbdfc1-c5d4-4d04-b08b-95627de3cd64_1) | 1  |
| [Principal Investment Strategy](#xx_58fbdfc1-c5d4-4d04-b08b-95627de3cd64_2) | 2  |
| [Principal Risks](#xx_58fbdfc1-c5d4-4d04-b08b-95627de3cd64_3) | 3  |
| [Investment Performance](#xx_58fbdfc1-c5d4-4d04-b08b-95627de3cd64_5) | 5  |
| [Management of the Fund](#xx_58fbdfc1-c5d4-4d04-b08b-95627de3cd64_5) | 5  |
| [Purchase and Sale of Fund Shares](#xx_58fbdfc1-c5d4-4d04-b08b-95627de3cd64_5) | 5  |
| [Tax Information](#xx_58fbdfc1-c5d4-4d04-b08b-95627de3cd64_6) | 6  |
| [Payments to Broker-Dealers and Other Financial](#xx_58fbdfc1-c5d4-4d04-b08b-95627de3cd64_6)<br> [Intermediaries](#xx_58fbdfc1-c5d4-4d04-b08b-95627de3cd64_6)<br>| 6  |
| **[Additional Fund Information](#xx_5de1b640-6da3-40d3-bad7-91c3104cab6d_1)** | 7  |
| [Investments](#xx_5de1b640-6da3-40d3-bad7-91c3104cab6d_3) | 9  |
| [Risk Factors](#xx_5de1b640-6da3-40d3-bad7-91c3104cab6d_4) | 10  |
| **[Organization and Management of the Fund](#xx_373e2d53-cc4a-40ab-a309-d09d623ae905_1)** | 15  |
| **[Investing with the Victory Funds](#xx_67e60ead-f115-4a93-98de-810e18fc823f_1)** | 16  |
| [Share Price](#xx_67e60ead-f115-4a93-98de-810e18fc823f_2) | 17  |
| [Choosing a Share Class](#xx_67e60ead-f115-4a93-98de-810e18fc823f_3) | 18  |
| [How to Buy Shares](#xx_67e60ead-f115-4a93-98de-810e18fc823f_6) | 21  |
| [How to Exchange Shares](#xx_67e60ead-f115-4a93-98de-810e18fc823f_9) | 24  |
| [How to Sell Shares](#xx_67e60ead-f115-4a93-98de-810e18fc823f_11) | 26  |
| **[Distributions and Taxes](#xx_7ecc6789-2e5a-440f-95d2-89a10698b799_1)** | 28  |
| **[Important Fund Policies](#xx_e00fcae0-b582-4de1-b6db-ad4c168d32ae_1)** | 31  |
| **[Financial Highlights](#xx_dd5043c6-daa6-495d-9d29-9c43d673e1eb_1)** | 34 |

---

------

**Victory Trivalent Emerging Markets Small-Cap Fund Summary**

**Investment Objective**

The Victory Trivalent Emerging Markets Small-Cap Fund (the "Fund") seeks to provide long-term growth of capital.

**Fund Fees and Expenses**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and example below**.

---

| | |
|:---|:---|
|  | **Class Y** |
| **Maximum Sales Charge (Load) Imposed on Purchases**<br> **(as a percentage of offering price)**<br>| None |
| **Maximum Deferred Sales Charge (Load)**<br> **(as a percentage of the lower of purchase or sale price)**<br>| None |

---

Annual Fund Operating Expenses

(expenses that you pay each year as a percentage of the value of your investment)

---

| | |
|:---|:---|
|  | **Class Y** |
| Management Fees | 0.99% |
| Distribution and/or Service (12b-1) Fees | 0.00% |
| Other Expenses<sup>1</sup> <br>| 0.94% |
| Total Annual Fund Operating Expenses | 1.93% |
| Fee Waiver/Expense Reimbursements<sup>2</sup> <br>| (0.83)% |
| **Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursements**<sup>2</sup> | 1.10% |

---

<sup>1</sup>

Estimated for the current fiscal year.

<sup>2</sup>

Victory Capital Management Inc., (the "Adviser") has contractually agreed to waive its management fee and/or reimburse expenses so that the total annual fund operating expenses (excluding certain items such as interest, taxes, and brokerage commissions) do not exceed 1.10% through at least October 31, 2027. The Adviser is permitted to recoup advisory fees waived and expenses reimbursed for up to three years after the date of the waiver or reimbursement, subject to the lesser of any operating expense limits in effect at the time of (a) the original waiver or expense reimbursement; or (b) the recoupment, after giving effect to the recoupment amount. This agreement may only be terminated by the Fund's Board of Trustees.

**Example:**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods shown and then sell or continue to hold all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The amounts shown reflect any fee waiver/expense reimbursement in place through its expiration date. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | |
|:---|:---|
| **1 Year** | **3 Years** |
| $112 | &nbsp;&nbsp;&nbsp; $469 |

---

**Portfolio Turnover:**

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when shares are held in a taxable account. These costs, which are not reflected

**1**

------

Victory Trivalent Emerging Markets Small-Cap Fund Summary

in annual Fund operating expenses or in the example, affect the Fund's performance. Because the Fund has not yet commenced investment operations, no portfolio turnover information is available at this time.

**Principal Investment Strategy**

Under normal circumstances, at least 80% of the Fund's net assets (plus any borrowings for investment purposes) will be invested in securities of small-capitalization companies that are economically tied to emerging markets countries. For purposes of this policy, a company is considered economically tied to an emerging markets country if it (i) is organized under the laws of, (ii) has its principal place of business in, (iii) derives a significant portion of its revenues or profits from, or (iv) has a majority of its assets located in, such country.

The Adviser considers emerging markets countries to be the countries represented in the MSCI Emerging Markets Small Cap Index. The Adviser considers any company with a market capitalization at the time of purchase that is within the range of the market capitalizations of companies included in the MSCI Emerging Markets Small Cap Index to be a small-capitalization company. If the index methodology changes or if a country is added to or removed from the index, the Adviser may adjust its determinations accordingly. The size of companies in the index changes with market conditions and the composition of the index.

The MSCI Emerging Markets Small Cap Index is designed to measure equity market performance of 24 emerging markets and targets approximately 14% of each market's free-float adjusted market capitalization. As of the date of this prospectus, emerging market countries include, without limitation, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Kuwait, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Saudi Arabia, South Africa, South Korea, Taiwan, Thailand, Turkey, and United Arab Emirates. The composition of the index, including the countries represented, may change over time.

In selecting emerging market small-capitalization investments for the Fund, the Adviser employs a bottom-up investment approach that emphasizes individual stock selection. The Adviser's investment process uses a combination of quantitative and traditional qualitative, fundamental analysis to identify companies exhibiting improving business momentum, attractive valuations, and high profitability. The stock selection process is designed to produce a diversified portfolio that, relative to the MSCI Emerging Markets Small Cap Index, tends to have a below-average price-to-earnings ratio and an above-average earnings growth trend and above-average return on invested capital. However, the Fund is actively managed and is not designed to replicate the performance of that index. The Fund's portfolio composition and performance may deviate significantly from the composition and performance of the index.

In selecting portfolio securities, the Adviser may consider certain non-financial ratings or factors, where applicable, using a combination of qualitative and quantitative assessments. The weight given to such factors, if any, varies depending on the issuer, the instrument and the availability and reliability of relevant data. Qualitative assessments may involve the exercise of judgment and may be subjective. Quantitative assessments, where used, are applied as part of the Adviser's broader investment process and are not determinative. These considerations may not be applied to all investments and, in all cases, are only one component of the Adviser's overall analysis.

The Adviser regularly reviews the Fund's investments and will sell a security if the Adviser believes there has been a deterioration in the rank of the security in accordance with the Adviser's process, the security's valuation has become unattractive relative to other stocks in the universe or other available investments are considered to be more attractive. The Fund may also sell a security to manage risk, meet redemptions or for other portfolio management purposes.

As a result of its investment strategy, the Fund may experience annual portfolio turnover in excess of 100%, which may result in increased transaction costs and taxable distributions to shareholders.

**2**

------

Victory Trivalent Emerging Markets Small-Cap Fund Summary

**Principal Risks** 

The Fund's investments are subject to the following principal risks:

**Equity Securities Risk** — The value of the equity securities in which the Fund invests may decline in response to developments affecting individual companies and/or general economic conditions in the United States or abroad. A company's earnings or dividends may not increase as expected (or may decline) because of poor management, competitive pressures, reliance on particular suppliers or geographical regions, labor problems or shortages, corporate restructurings, fraudulent disclosures, man-made or natural disasters, military confrontations or wars, terrorism, public health crises, or other events, conditions, and factors. Price changes may be temporary or last for extended periods. Equity securities have the lowest priority, and the greatest risk, with respect to dividends and any liquidation payments in the event of an issuer's bankruptcy.

**General Market Risk** — Overall market risks may affect the value of the Fund. Domestic and international factors such as political events, war, terrorism, trade disputes, inflation rates, interest rate levels, and other fiscal and monetary policy changes; cybersecurity incidents, pandemics, and other public health crises; imposition of tariffs; sanctions against a particular foreign country, its nationals, businesses, or industries; and related geopolitical events, as well as environmental disasters such as earthquakes, fires, and floods, or other catastrophes, may add to instability in global economies and markets generally, and may lead to increased market volatility. Global economies and financial markets are highly interconnected, which increases the possibility that conditions in one country or region might adversely affect issuers in another country or region. The impact of these and other factors may be short-term or may last for extended periods.

**Foreign Securities Risk** — Foreign securities (including depositary receipts) are subject to political, regulatory, and economic risks not present in domestic investments. Foreign securities could be affected by factors not present in the United States, including expropriation, confiscation of property, and difficulties in enforcing contracts. Compared to U.S. companies, there generally is less publicly available information about foreign companies and there may be less governmental regulation and supervision of foreign companies. Foreign securities generally experience more volatility than their domestic counterparts. Depositary receipts may have additional risks, including creditworthiness of the depositary bank and the risk of an illiquid market. In addition, to the extent investments are made in a limited number of countries, events in those countries will have a more significant impact on the Fund. Fluctuations in the exchange rates between the U.S. dollar and foreign currencies, currency exchange control regulations, and restrictions or prohibitions on the repatriation of foreign currencies may negatively affect an investment. Dividends and interest received by the Fund and capital gains recognized by the Fund may give rise to withholding and other taxes imposed by foreign countries and may decrease the Fund's return.

**Emerging Markets Risk** — The risks related to investing in foreign securities generally are greater with respect to securities of companies that conduct their business activities in emerging markets or whose securities are traded principally in emerging markets. The risks of investing in emerging markets include the risks of illiquidity, increased price volatility, smaller-market capitalizations, limited reliable access to capital, less government regulation (including limitations on the available rights and remedies), market manipulation concerns, less extensive and less frequent recordkeeping, accounting, financial and other reporting requirements, risk of loss resulting from problems in share registration and custody, risks related to foreign investment structures, substantial economic and political disruptions, and the nationalization of foreign deposits or assets.

**Currency Risk —** Currency rates in foreign countries may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates, intervention (or the failure to intervene) by U.S. or foreign governments, central banks, national entities such as the International

**3**

------

Victory Trivalent Emerging Markets Small-Cap Fund Summary

Monetary Fund, or by the imposition of currency controls, or other political developments in the United States or abroad. As a result, investments in foreign currency-denominated securities may reduce the returns of the Fund.

**Geographic Focus Risk** — To the extent the Fund focuses its investments in issuers located in a particular country or region, the Fund is subject to greater risks of volatile economic cycles and/or conditions and developments that may be particular to that country or region. For example, the Fund may be subject to greater risk of adverse securities markets, exchange rates, social, political, regulatory, economic, business, environmental or other developments, or natural disasters.

**Sector Focus Risk** — While the Fund reserves the right to dynamically allocate its assets across economic sectors, listed below are some of the risks associated with the sector in which the Fund may make significant investments. Market or economic factors impacting the sector could have a significant effect on the value of the Fund's investments and could make the Fund's performance more volatile.

**Small-Capitalization Stock Risk** — Small-sized companies are subject to a number of risks not associated with larger, more established companies, potentially making their stock prices more volatile and increasing the risk of loss. Smaller companies may have limited markets, product lines, or financial resources and lack management experience and may experience higher failure rates than larger companies.

**Investment Style Risk** — Different types of investment styles, for example growth or value, tend to perform differently and shift into and out of favor with investors depending on changes in market and economic sentiment and conditions. As a result, the Fund's performance may at times be worse than the performance of other mutual funds that invest more broadly or that have different investment styles.

**Large Shareholder Risk** — Certain large shareholders, including other funds advised by the Adviser, may from time to time own a substantial amount of the Fund's shares. The actions by one shareholder or multiple shareholders may have an impact on the Fund and, therefore, indirectly on other shareholders. Shareholder purchase and redemption activity may affect the per share amount of the Fund's distributions of its net investment income and net realized capital gains, if any, thereby affecting the tax burden on the Fund's shareholders subject to federal income tax, and/or accelerate the realization of taxable income and cause the Fund to make taxable distributions to its shareholders earlier than the Fund otherwise would have. In addition, under certain circumstances, non-redeeming shareholders may be treated as receiving a disproportionately large taxable distribution during or with respect to such tax year. To the extent a larger shareholder is permitted to invest in the Fund, the Fund may experience large inflows or outflows of cash from time to time. This activity could magnify these adverse effects on the Fund.

**Liquidity Risk** — Lack of a ready market or restrictions on resale may limit the ability of the Fund to dispose of certain holdings quickly or at prices that represent true market value in the judgment of the Adviser. In addition, the Fund, by itself or together with other accounts managed by the Adviser, may hold a position in an investment that is large relative to the typical trading volume for that investment, which can make it difficult for the Fund to dispose of the position at an advantageous time or price. Illiquid investments and relatively less-liquid investments may also be difficult to value. Liquidity risk may also refer to the risk that the Fund may not be able to pay redemption proceeds within the allowable time period because of unusual market conditions, unusually high volume of redemptions, or other reasons. To meet redemption requests or to raise cash to pursue other investment opportunities, the Fund may be forced to sell investments at an unfavorable time and/or under unfavorable conditions, which may adversely affect the Fund.

**Limited History of Operations** — The Fund is new and has no history of operations for investors to evaluate.

**4**

------

Victory Trivalent Emerging Markets Small-Cap Fund Summary

**Management Risk** — The portfolio managers may not execute the Fund's principal investment strategy effectively.

**Portfolio Turnover Risk** — Higher portfolio turnover ratios resulting from additional purchases and sales of portfolio securities generally will result in higher transaction costs, and Fund expenses and may result in the realization of taxable capital gains, including short-term capital gains, which generally are taxed to shareholders at ordinary income tax rates.

You may lose money by investing in the Fund. There is no guarantee that the Fund will achieve its objective. An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

By itself, the Fund does not constitute a complete investment plan and should be considered a long-term investment for investors who can afford to weather changes in the value of their investment.

**Investment Performance**

No performance information is presented since the Fund does not yet have a full calendar year

of performance. Performance data for the Fund is available online at vcm.com or by calling 800-539-FUND (800-539-3863). A fund's performance is not necessarily an indication of how that fund will perform

in the future.

**Management of the Fund**

**Investment Adviser**

Victory Capital Management Inc. (the "Adviser") serves as the Fund's investment adviser. The portfolio managers jointly and primarily responsible for day-to-day management of the Fund are members of the Adviser's Trivalent Investments ("Trivalent") investment franchise.

**Portfolio Management** 

---

| | | |
|:---|:---|:---|
|  | **Title**  | **Tenure with the Fund**  |
| John W. Evers, CFA  | Senior Portfolio Manager  | Since inception |
| Robert D. Cerow, CFA | Senior Equity Analyst | Since inception |

---

**Purchase and Sale of Fund Shares** 

---

| | |
|:---|:---|
| **Investment Minimums** | **Class Y** |
| Minimum Initial Investment | &nbsp;&nbsp;&nbsp; $1000000 |
| Minimum Subsequent Investments |  |

---

Certain broker-dealers and other financial intermediaries (such as a bank) may establish higher or lower minimum initial and subsequent investment amounts to which you may be subject if you invest through them.

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.

When you buy and redeem shares, the Fund will price your transaction at the next-determined net asset value ("NAV") after the Fund receives your request in good order, which means that your request contains all the required documentation, and that all documents contain required signatures or signature guarantees from a financial institution.

**5**

------

Victory Trivalent Emerging Markets Small-Cap Fund Summary

**Tax Information**

The Fund's distributions may be taxable whether you receive them in cash, additional shares of the Fund, or you reinvest them in shares of another Victory Fund, and may be taxed as ordinary income or capital gains, unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account. Taxes may be imposed on withdrawals from tax-deferred arrangements.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the financial intermediary and its financial advisor to recommend the Fund over another investment. Ask your financial advisor or visit your financial intermediary's website for more information.

**6**

------

Additional Fund Information

------

&nbsp;&nbsp; Victory Capital Management Inc., which we refer to as the "Adviser" <br> throughout the Prospectus, manages the Fund.<br>

The Victory Trivalent Emerging Markets Small-Cap Fund (the "Fund") is managed by the Adviser who also manages other funds, each having distinct investment management objectives, strategies, risks, and policies. Together, these funds are referred to in this Prospectus as the "Victory Funds" or, more simply, the "Funds."

The Fund's investment objective is non-fundamental. Under normal circumstances at least 80% of the Fund's net assets (plus any borrowings for investment purposes) will be invested in equity securities of small-capitalization companies that are economically tied to emerging markets countries. The Fund's investment strategy is non-fundamental. The Board of Trustees (the "Board") may change Fund objectives or policies that are non-fundamental without shareholder approval upon at least 60 days' prior written notice to shareholders.

The following section describes additional information about the principal investment strategies the Fund will use under normal market conditions to pursue its investment objective, as well as any secondary strategies the Fund may use, and the related risks. This Prospectus does not attempt to describe all of the various investment techniques and types of investments that the Adviser may use in managing the Fund. The Statement of Additional Information ("SAI") includes more information about the Fund, its investments, and the related risks.

Under adverse, unstable, or abnormal market conditions, the Fund may be unable to pursue or achieve its investment objective and, for temporary purposes, may invest some or all of its assets in a variety of instruments or assets, including high-quality fixed-income securities, cash, and cash equivalents. For cash management purposes, the Fund may hold all or a portion of its assets in cash, short-term money market instruments, or shares of other investment companies. These positions may reduce the benefit from any upswing in the market, cause the Fund to fail to meet its investment objective, and increase the Fund's expenses.

The Adviser employs a bottom-up investment approach that emphasizes individual stock selection. The Adviser's investment process uses a combination of quantitative and traditional qualitative, fundamental analysis to identify companies exhibiting improving business momentum, attractive valuations, and high profitability.

The Adviser regularly reviews the Fund's investments and will sell a security if the Adviser believes there has been a deterioration in the rank of the security in accordance with the Adviser's process, the security's valuation has become unattractive relative to other stocks in the universe or other available investments are considered to be more attractive.

**7**

------

Additional Fund Information

------

The Fund may consider various non-financial ratings or factors, where applicable, through quantitative models or qualitative assessment. The significance these considerations have on security selection varies widely, as the analysis is inherently subjective. Further, the consideration of such factors may not apply to certain instruments, and the considerations of such factors is only a part of the investment process.

&nbsp;&nbsp; If you would like to receive additional copies of any materials, please call the Victory Funds <br> at 800-539-FUND (800-539-3863) or please visit VictoryFunds.com.<br>

**8**

------

Investments

------

**The following describes the types of securities the Fund may purchase under normal market conditions to achieve its principal investment strategy. The Fund will not necessarily buy all of the securities listed below.**

**Foreign Securities**

Can include common stock and convertible preferred stock of non-U.S. companies. Also may include American Depositary Receipts ("ADRs") and Global Depositary Receipts ("GDRs"), which are receipts issued by a bank or trust company and evidence ownership of underlying securities issued by foreign companies, and exchange-traded funds ("ETFs") that invest in foreign companies.

**Convertible Preferred Stock**

A class of stock that pays dividends at a specified rate, has preference over common stock in the payment of dividends and the liquidation of assets, and is convertible into common stock.

**<u>Additional Fund Strategies.</u> The Adviser may use other types of investment strategies in pursuing the Fund's overall investment objective. The following describes the types of securities or techniques that the Adviser may purchase or investment techniques the Adviser may employ that are not considered to be a part of the Fund's principal investment strategies. Additional securities and techniques are described in the Fund's SAI.**

**Derivatives**

From time to time, the Fund may invest in derivatives, which are financial contracts whose value is based on an underlying security or asset, a currency exchange rate, an interest rate, or a market index. Many types of instruments representing a wide range of potential risks and rewards are derivatives, including but not limited to futures contracts, options on futures contracts, options, swaps, and forward currency exchange contracts. The Fund may, but is not required to, use index futures for cash management (attempting to remain fully invested while maintaining liquidity) or to gain exposure to an investment in a manner other than investing in the asset directly. The Fund will not use derivatives for speculative purposes.

**Forward Foreign Currency Exchange Contracts**

Contracts that attempt to eliminate currency exposure between the time of a securities transaction and settlement of that transaction. A forward foreign currency exchange contract is an agreement to buy or sell a country's currency at a specific price on a specific date, usually 30, 60, or 90 days in the future. In other words, the contract guarantees an exchange rate on a given date.

**Investment Companies**

The Fund may invest in securities of other investment companies, including ETFs, if those companies invest in securities consistent with the Fund's investment objective and policies. ETFs are investment companies the shares of which are bought and sold on a securities exchange.

**Securities Lending**

To enhance the return on its portfolio, the Fund may lend portfolio securities to brokers, dealers, and financial institutions to realize additional income under guidelines adopted by the Board. Each loan will be secured continuously by collateral in the form of cash, securities issued by the U.S. government or its agencies or instrumentalities.

**9**

------

Risk Factors

------

**The following provides additional information about the Fund's principal risks and supplements those risks discussed in the Fund's Summary section of this Prospectus.** 

&nbsp;&nbsp; By matching your investment objective with an acceptable level of risk, <br> you can create your own customized investment plan.<br>

**Emerging Markets Risk —** There are greater risks involved in investing in emerging market countries than those associated with investment in developed foreign markets. The risks of investing in foreign securities generally are amplified for investments in emerging markets securities. Generally, markets in emerging market countries are less diverse and mature than those of developed countries and their political systems are less stable. In addition, recordkeeping, accounting, financial and other reporting may be less extensive and less frequent. There are risks also associated with share registration, custody, and foreign investment structures. Further, due to the smaller securities markets, limited reliable access to capital, market manipulation concerns, lower trading volumes and less government regulation of securities markets (including limitations on the available rights and remedies) in emerging market countries compared to those in developed countries, investments in emerging market securities generally are more illiquid and volatile and subject to a higher risk of settlement disruptions than investments in securities of issuers in developed countries. Consequently, emerging market securities may be subject to relatively more abrupt and severe price declines.

**Equity Securities Risk** — The market prices of equity securities, which may include common stocks and other stock-related securities such as preferred stocks, convertible securities, and rights and warrants may fluctuate, sometimes rapidly or unpredictably. The Fund may continue to accept new subscriptions and to make additional investments in equity securities even under general market conditions that the Fund's investment team views as unfavorable for equity securities. The value of a security may decline for reasons that directly relate to the issuer, such as management performance, financial leverage, and reduced demand for the issuer's goods or services or due to general market conditions, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates, or adverse investor sentiment generally. Unlike debt securities, which have preference to a company's assets in case of liquidation, common stock, is entitled to the residual value after the company meets its other obligations. Unlike common stock, preferred stock generally pays a fixed dividend from a company's earnings and may have a preference over common stock on the distribution of a company's assets in the event of bankruptcy or liquidation. Preferred stockholders' liquidation rights are subordinate to the company's debt holders and creditors. If interest rates rise, the fixed dividend on preferred stocks may be less attractive and the price of preferred stocks may decline. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. Convertible securities may gain or lose value due to changes in the issuer's operating results, financial condition, credit rating, and changes in interest rates, and other general economic, industry, and market conditions. Equity securities have the lowest priority, and the greatest risk, with respect to dividends and any liquidation payments in the event of an issuer's bankruptcy. Rights and warrants can provide a greater potential for profit or loss than an equivalent investment in the underlying security. Prices of warrants and rights do not necessarily move in tandem with the prices of the underlying securities and therefore are highly volatile and speculative investments.

**Foreign Securities Risk** — Foreign investments involve certain special risks. For example, compared to U.S. companies, there generally is less publicly available information about foreign companies and there may be less governmental regulation and supervision of foreign stock exchanges, brokers, and listed companies. Foreign issuers may not be subject to the uniform accounting, auditing, and financial reporting standards and practices prevalent in the United States. Certain of these risks may also apply to some extent to U.S. investments that are denominated in foreign currencies and to investments in U.S. companies that have significant foreign operations. Investments in depositary receipts (such as American Depositary Receipts and Global Depositary Receipts) may also involve additional risks

**10**

------

Risk Factors

------

associated with the non-uniform terms that apply to depositary receipt programs, credit exposure to the depository bank and to the sponsors and other parties with whom the depository bank establishes the programs, currency risk and the risk of an illiquid market for depositary receipts.

<sup>◼</sup>

**Political Risk** — Foreign securities markets may be more volatile than their counterparts in the United States. Investments in foreign countries could be affected by factors not present in the United States, including expropriation, confiscation of property, and difficulties in enforcing contracts. Foreign settlement procedures may also involve additional risks, and foreign issuers can be impacted by changes to trade policies and trade disputes. These factors can make foreign investments more volatile than U.S. investments.

<sup>◼</sup>

**Currency Risk** — Fluctuations in the exchange rates between the U.S. dollar and foreign currencies may negatively affect an investment. Adverse changes in exchange rates, currency exchange control regulations, and restrictions or prohibitions on the repatriation of foreign currencies may erode or reverse any gains produced by investments denominated in foreign currencies and may widen any losses.

<sup>◼</sup>

**Legal Risk** — Legal remedies for investors in foreign countries may be more limited than the legal remedies available in the United States.

<sup>◼</sup>

**Tax Risk** — The value of a Fund's foreign investments may also be affected by foreign tax laws, special U.S. tax considerations and restrictions on receiving the investment proceeds from a foreign country. Dividends and interest received by a Fund and capital gains recognized by a Fund may give rise to withholding and other taxes imposed by foreign countries and may decrease the Fund's return.

**General Market Risk** — Stock market risk refers to the fact that the prices of equity securities and other exchange traded investments typically fluctuate more than the values of debt and other types of securities, typically in response to changes in the particular company's financial condition and factors affecting the market in general. Over time, the stock market tends to move in cycles, with periods when stock prices rise, and periods when stock prices decline. A slower-growth or recessionary economic environment could have an adverse effect on stock prices. Consequently, a broad-based market drop may also cause a stock's price to fall. Portfolio securities may also decline in value due to factors affecting securities markets generally, such as real or perceived adverse economic, political, or regulatory conditions, inflation, changes in interest or currency rates or adverse investor sentiment, or due to factors affecting particular industries represented in the securities markets, such as competitive conditions. Changes in the financial condition of a single issuer can impact a market as a whole, and adverse market conditions may be prolonged and may not have the same impact on all types of securities. In addition, the markets may not favor a particular kind of security, including equity securities. Values of securities may fall due to factors affecting a particular issuer, industry, or the securities market as a whole.

Market turmoil may be reflected in perceptions of economic uncertainty, price volatility in the equity and debt markets, and fluctuating trading liquidity. In response, governments may adopt a variety of fiscal and monetary policy changes, including but not limited to, direct capital infusions into companies, new monetary programs, and changes in interest rates. These policies may not be successful and any unexpected or quick reversal of these policies could increase volatility in the equity and debt markets. Market conditions and economic risks could have a significant effect on domestic and international economies and could add significantly to the risks of increased volatility and decreased liquidity for the Fund's portfolio.

<sup>◼</sup>

**Geopolitical/Natural Disaster Risk** — Global economies and financial markets are increasingly interconnected, which increases the possibilities that conditions in one country or region might adversely affect issuers in another country or region. Geopolitical and other risks, including war, economic sanctions, currency controls or other actions by countries or international bodies, terrorism, trade disputes, embargoes, political or economic dysfunction within some

**11**

------

Risk Factors

------

nations, public health crises and related geopolitical events, as well as environmental disasters such as earthquakes, fires, and floods, may add to instability in world economies and markets generally. Changes in trade policies and international trade agreements could affect the economies of many countries in unpredictable ways. Epidemics and/or pandemics, such as COVID-19, may result in, among other things, closing borders, disruptions to health care service preparation and delivery, quarantines, cancellations, disruptions to supply chains and consumer activity, as well as general concern and uncertainty. The impact may last for extended periods.

<sup>◼</sup>

**Information Technology and Operational Risk** — Markets and market participants are increasingly reliant upon both publicly available and proprietary information data systems. Data imprecision, software or other technology malfunctions, programming inaccuracies, unauthorized use or access, and similar circumstances may impair the performance of these systems and may have an adverse impact upon a single issuer, a group of issuers, or the market at large. The information technology and other operational systems upon which the Fund's service providers rely may be subject to cyber-attack or other technological disruptions, and could otherwise disrupt the ability of these service providers to perform essential tasks for the Fund. In certain cases, an exchange or market may close or issue trading halts on either specific securities or even the entire market, which may result in the Fund being, among other things, unable to buy or sell certain securities or financial instruments or accurately price its investments.

**Geographic Focus Risk** — The Fund may invest a substantial portion of its assets within one or more countries or geographic regions. When the Fund focuses its investments in a country or countries, it is particularly susceptible to the impact of market, economic, political, regulatory, and other factors affecting those countries. Additionally, the Fund's performance may be more volatile when the Fund's investments are focused in a country or countries.

**Investment Style Risk** — Different types of investment styles, for example growth or value, tend to perform differently and shift into and out of favor with investors depending on changes in market and economic sentiment and conditions. "Value" investments, as a category, or entire industries or sectors associated with such investments, may lose favor with investors as compared to those that are more "growth" oriented. As a result, the Fund's performance may at times be worse than the performance of other mutual funds that invest more broadly or that have different investment styles.

**Large Shareholder Risk** — The Fund, like all investment companies, pool the investments of many investors. Actions by one shareholder or multiple shareholders may have an impact on the Fund and, therefore, indirectly on other shareholders. For example, significant levels of new investments in the Fund by shareholders may cause the Fund to have more cash than would otherwise be the case, which might have a positive or negative impact on Fund performance. Similarly, redemption activity might cause the Fund to sell portfolio securities, which may increase transaction costs and might generate a capital gain or loss, or cause it to borrow funds on a short-term basis to cover redemptions, which would cause the Fund to incur costs that, in effect, would be borne by all shareholders and not just the redeeming shareholders. Shareholder purchase and redemption activity also may affect the per share amount of the Fund's distributions of its net investment income and net realized capital gains, if any, thereby affecting the tax burden on the Fund's shareholders subject to federal income tax, and/or accelerate the realization of taxable income and cause the Fund to make taxable distributions to its shareholders earlier than the Fund otherwise would have. In addition, under certain circumstances, non-redeeming shareholders may be treated as receiving a disproportionately large taxable distribution during or with respect to such tax year. To the extent a larger shareholder is permitted to invest in the Fund, the Fund may experience large inflows or outflows of cash from time to time. This activity could magnify these adverse effects on the Fund.

**12**

------

Risk Factors

------

**Limited History of Operations** — The Fund is new with limited to no history of operations for investors to evaluate. Investors in the Fund bear the risk that the Fund may not be successful in implementing its investment strategies, may be unable to implement certain of its investment strategies or may fail to attract sufficient assets, any of which could result in the Fund being liquidated and terminated at any time without shareholder approval and at a time that may not be favorable for all shareholders. Such a liquidation could have negative tax consequences for shareholders and may cause shareholders to incur expenses of liquidation.

**Liquidity Risk** — Liquidity risk exists when particular investments cannot be disposed of quickly in the normal course of business. Market values for illiquid investments may not be readily available, and there can be no assurance that any fair value assigned to an illiquid investment at any time will accurately reflect the price the Fund might receive upon the sale of that investment. The ability of the Fund to dispose of illiquid investments or other instruments at advantageous prices may be greatly limited, and the Fund may have to continue to hold such investments or instruments during periods when the Adviser would otherwise have sold them (in order, for example, to meet redemption requests or to take advantage of other investment opportunities). Adverse market or economic conditions independent of any specific adverse changes in the conditions of a particular issuer, including rising interest rates, may adversely affect the liquidity of the Fund's investments. Some securities held by the Fund may be restricted as to resale, and there is often no ready market for such securities. In addition, the Fund, by itself or together with other accounts managed by the Adviser, may hold a position in an investment that is large relative to the typical trading volume for that holding, which can make it difficult for the Fund to dispose of the position at an advantageous time or price. It may also be the case that other market participants may be attempting to liquidate a position at the same time as the Fund is attempting to liquidate the same investment, causing increased supply in the market, and contributing to liquidity risk and downward pricing pressure. In such cases the sale proceeds received by the Fund may be substantially less than if the Fund had been able to sell the securities in more-orderly transactions, and the sale price may be substantially lower than the price previously used by the Fund to value the securities for purposes of determining the Fund's net asset value.

**Management Risk** — The investment process used by the investment team may produce incorrect judgments about the value of a particular asset or the team may implement its investment strategy in a way that may not produce the desired results.

**Portfolio Turnover Risk** — Portfolio turnover generally involves a number of direct and indirect costs and expenses to the Fund, including, for example, dealer mark-ups and bid/ask spreads and transaction costs on the sale of securities and reinvestment in other securities. Such costs are not reflected in the Fund's Total Annual Fund Operating Expenses set forth under "Fund Fees and Expenses" but do have the effect of reducing the Fund's investment return. Such sales may result in the realization of taxable capital gains, including short-term capital gains, which generally are taxed to shareholders at ordinary income tax rates.

**Small-Capitalization Stock Risk** — A small-sized company may be adversely affected by or fail as a result of its small size. Smaller companies are more likely than larger companies to have limited product lines, markets, or financial resources, or to depend on a small, inexperienced management group. Stocks of these companies often trade less frequently and in limited volume, and their prices may fluctuate more than stocks of larger companies. Stocks of small companies may, therefore, be more vulnerable to adverse developments than those of larger companies.

**Sector Focus Risk** — To the extent the Fund focuses in one or more sectors, market or economic factors impacting those sectors could have a significant effect on the value of the Fund's investments. Additionally, the Fund's performance may be more volatile when the Fund's investments are focused in a particular sector.

**13**

------

Risk Factors

------

**<u>Additional Risk Factors.</u>** The Adviser may use several types of investment strategies in pursuing the Fund's overall investment objective. The following risks are those that the Adviser does not consider to be principal risks of the Fund. Additional risks are included in the Fund's SAI.

**Derivatives Risk** — Derivatives, such as forward currency contracts, futures contracts and options on futures contracts, are subject to the risk that small price movements can result in substantial gains or losses. Derivatives also entail exposure to counterparty risk, the risk of mispricing or improper valuation and the risk that changes in value of the derivative may not correlate perfectly with the relevant securities, assets, or indices. The use of derivatives may cause the Fund to incur losses greater than those that would have occurred had derivatives not been used.

**Investment Company Risk** — The Fund's ability to achieve its investment objective may be directly related to the ability of other investment companies (including ETFs) held by the Fund to meet their investment objectives. In addition, shareholders of the Fund will indirectly bear the fees and expenses of the underlying investment companies. Lack of liquidity in an ETF could result in an ETF being more volatile than the underlying portfolio of securities.

**Securities Lending Risk** — The risk in lending portfolio securities, as with other extensions of credit, consists of the possibility of loss to the Fund due to (1) the inability of the borrower to return the securities, (2) a delay in receiving additional collateral to adequately cover any fluctuations in the value of securities on loan, (3) a delay in recovery of the securities, or (4) the loss of rights in the collateral should the borrower fail financially. These events could trigger adverse tax consequences for a Fund. In addition, the Fund is responsible for any loss that might result from its investment of the borrower's collateral. In determining whether to lend securities, the Adviser or the Fund's securities lending agent will consider relevant facts and circumstances, including the creditworthiness of the borrower.

&nbsp;&nbsp; An investment in the Fund is not a <br> complete investment plan.<br>

**14**

------

Organization and Management of the Fund

------

The Fund's Board has the overall responsibility for overseeing the management of each Fund.

**The Investment Adviser**

The Adviser serves as the investment adviser to each of the Victory Funds pursuant to an investment advisory agreement and oversees the operations of the Fund according to investment policies and procedures adopted by the Board. The Adviser is a New York corporation that is registered as an investment adviser with the Securities and Exchange Commission ("SEC"). As of April 30, 2026, the Adviser managed and advised assets totaling in excess of $332.6 billion for individual and institutional clients. The Adviser's principal address is 15935 La Cantera Parkway, San Antonio, TX 78256.

A discussion regarding the basis of the Board's approval of the Fund's Advisory Agreement will be available in the Fund's most recent Form N-CSR filing for the year ended June 30, 2026.

The Adviser is a diversified global asset manager comprised of multiple investment teams, referred to as investment franchises, each of which employs an independent approach to investing. Trivalent Investments ("Trivalent") is the investment franchise responsible for management of the Fund.

Advisory fees to be paid annually, before waivers, will be equal to the following:

---

| | |
|:---|:---|
| **Fund**  | **Advisory Fee**  |
| Victory Trivalent Emerging Markets Small-Cap Fund  | &nbsp;&nbsp; 0.99% |

---

See "Fund Fees and Expenses" for information about any contractual agreement by the Adviser to waive fees and/or reimburse expenses with respect to the Fund. From time to time, the Adviser also may voluntarily waive fees and/or reimburse expenses in amounts exceeding those required to be waived or reimbursed under any contractual agreement that may be in place with respect to the Fund.

**Portfolio Management**

**John W. Evers** is a Senior Portfolio Manager of Trivalent and has been with the Adviser since 2014. He has been the Lead Portfolio Manager, with final investment authority, and a portfolio manager of the Fund since inception. Mr. Evers is a CFA charterholder.

**Robert D. Cerow** is a Senior Equity Analyst of Trivalent and has been with the Adviser since 2014. He has been a portfolio manager of the Fund since inception. Mr. Cerow is a CFA charterholder.

*The Fund's SAI provides additional information about the portfolio managers' method of compensation, other accounts they manage, and any ownership interests they may have in the Fund.*

**15**

------

Investing with the Victory Funds

------

All you need to get started is to fill out an application.<br>

If you are looking for a convenient way to open an account or to add money to an existing account, we can help. The sections that follow will serve as a guide to your investment with the Victory Funds. These sections describe many of the share classes currently offered by the Victory Funds. The section *Choosing a Share Class* will help you decide which share class it may be to your advantage to buy.

Keep in mind that Class I, Class R, Class R6, and Class Y shares are available for purchase only by eligible shareholders. In addition, not all Victory Funds offer each class of shares described below, and therefore, certain classes may be discussed that are not necessarily offered by a Fund. The classes of shares that are offered by a Fund are those listed on the cover page designated with a ticker symbol. A Fund may also offer other share classes in different prospectuses. The Victory Funds may offer additional classes of shares in the future.

This section of the Prospectus also describes how to open an account, how to access information about your account, and how to buy, exchange, and sell shares of a Victory Fund. Note, this information may vary if you invest through a third party such as a brokerage firm and will be dependent on that firm's policies and practices. Consult your Investment Professional for specific details.

We want to make it simple for you to do business with us. If you have questions about any of this information, please call your Investment Professional or one of our customer service representatives at 800-539-FUND (800-539-3863). They will be happy to assist you.

&nbsp;&nbsp; An Investment Professional is an investment consultant, salesperson, financial planner, <br> investment adviser, or trust officer who provides you with investment information. <br> Your Investment Professional also can help you decide which share class is best for you. <br> Investment Professionals and other financial intermediaries may charge fees for their services.<br>

**16**

------

Share Price

------

&nbsp;&nbsp; The daily NAV is useful to you as a shareholder because the NAV, <br> multiplied by the number of Fund shares you own, gives you the value of your investment.<br>

The Victory Fund calculates its share price, called its net asset value ("NAV"), each business day as of the close of regular trading on the New York Stock Exchange, Inc. ("NYSE"), which is normally 4:00 p.m. Eastern Time. The NAV takes into account the expenses and fees of the Fund, including management, administration, and distribution fees (if any), which are accrued daily. In the event of an emergency or other disruption in trading on the NYSE, the Fund's share price will be determined based upon the close of the NYSE. You may buy, exchange, and sell your shares on any business day at a price that is based on the NAV that is next calculated after you place your order. A business day is a day on which the NYSE is open. The NYSE is closed on weekends, most national holidays, and Good Friday. Undistributed income and gain will be reflected in the Fund's NAV and, correspondingly, distributions of the Fund's income and gain will reduce the Fund's NAV. Undistributed income and gain, like all Fund assets, can fluctuate in value over time. Please see "Distributions and Taxes" for more information about the Fund's distribution policies, including the general frequency of distributions.

To the extent the Fund's investments include securities that are traded primarily in foreign markets, the value of those securities may change on days when shareholders are unable to purchase and redeem the Fund's shares, such as on weekends or other days when the Fund does not price its shares.

The Fund prices its investments based on market value when market quotations are readily available. When these quotations are not readily available, the Adviser will price the Fund's investments at fair value in accordance with applicable regulatory requirements. A security will be fair valued when:

◼

Trading in the security has been halted;

◼

The market quotation for the security is clearly erroneous due to a clerical error;

◼

The security's liquidity decreases such that, in the Adviser's opinion, the market quotation has become stale; or

◼

An event occurs after the close of the trading market (but before the Fund's NAV is calculated) that, in the Adviser's opinion, materially affects the value of the security.

The use of fair value pricing may minimize arbitrage opportunities that attempt to exploit the differences between a security's market quotation and its fair value. The use of fair value pricing may not, however, always reflect a security's actual market value in light of subsequent relevant information, and the security's opening price on the next trading day may be different from the fair value price assigned to the security.

The Fund calculates the NAV of each share class by adding up the total value of the investments and other assets of that class, subtracting its liabilities, and then dividing that figure by the number of outstanding shares of the class.

---

| | |
|:---|:---|
| NAV= | Total Assets - Liabilities |
| NAV= | Number of Shares Outstanding |

---

The Fund's NAV is available by calling 800-539-FUND (800-539-3863) or by visiting the Fund's website at vcm.com.

**17**

------

Choosing a Share Class

------

**CLASS A**

◼

Front-end sales charge, as described in this section. There are several ways to reduce or eliminate this charge as discussed under *Sales Charge Reductions and Waivers for Class A Shares*.

◼

A contingent deferred sales charge ("CDSC") may be imposed if you sell your shares within 18 months of purchase. The CDSC may be waived or reduced in certain circumstances as discussed under *CDSC Reductions for Class A and Class C Shares.*

◼

Class A shares also pay ongoing distribution and/or service (12b-1) fees.

◼

Lower annual expenses than Class C or Class R shares.

**CLASS C**

◼

No front-end sales charge. All your money goes to work for you right away.

◼

A CDSC may be imposed if you sell your shares within 12 months of purchase. The CDSC may be waived or reduced in certain circumstances as discussed under *CDSC Reductions for Class A and Class C Shares*.

◼

Class C shares also pay ongoing distribution and/or service (12b-1) fees.

◼

Higher annual expenses than all other classes of shares.

**CLASS I**

◼

No front-end sales charge or CDSC. All your money goes to work for you right away.

◼

Class I shares do not pay any ongoing distribution and/or service (12b-1) fees.

◼

Class I shares are only available to certain investors.

◼

Typically lower annual expenses than all other classes of shares except Class R6 shares.

**CLASS R**

◼

No front-end sales charge or CDSC. All your money goes to work for you right away.

◼

Class R shares pay ongoing distribution and/or service (12b-1) fees.

◼

Class R shares are only available to certain investors.

◼

Higher annual expenses than all classes except Class C shares.

**CLASS R6**

◼

No front-end sales charge or CDSC. All your money goes to work for you right away.

◼

Class R6 shares do not pay any ongoing distribution and/or service (12b-1) fees.

◼

Class R6 shares are only available to certain investors.

◼

Typically lower annual expenses than all other classes of shares.

**CLASS Y**

◼

No front-end sales charge or CDSC. All your money goes to work for you right away.

◼

Class Y shares do not pay any ongoing distribution and/or service (12b-1) fees.

◼

Class Y shares are only available to certain investors.

◼

Typically lower annual expenses than Classes A, C, and R shares.

**18**

------

Choosing a Share Class

------

**Share Classes**

When you purchase shares of the Fund, you must choose a share class. The Victory Funds offer Class A, Class C, Class I, Class R, Class R6, and Class Y shares. The Fund currently offers only Class Y shares. Consult with your financial advisor to determine whether Class Y shares are an appropriate investment for you. Each share class represents an interest in the same portfolio of securities, but the classes differ in the sales charges, if any, and expenses that apply to your investment, allowing you and your Investment Professional to choose the class that best suits your investment needs.

Deciding which share class best suits your investment needs depends on a number of factors that you should discuss with your Investment Professional, including: how long you expect to hold your investment, how much you intend to invest, and the total expenses associated with each share class.

The Fund reserves the right to change the eligibility criteria for purchasing a particular share class. For example, a class of shares may be available to purchase only by retirement plans or by institutional investors. The Fund may also waive any applicable eligibility criteria or investment minimums at its discretion.

The Fund or any class may be closed at any time for failure to achieve an economical level of assets or for other reasons. Certain financial intermediaries who hold shares on behalf of their customers impose fees when the amount of shares of a particular class falls below a minimum threshold. To the extent that the amount of shares falls below that threshold, the Fund reserves the right to liquidate the shares held in accounts maintained by the financial intermediary.

**Eligibility Requirements to Purchase Class Y Shares**

Class Y shares may only be purchased by:

◼

Institutional and individual retail investors with a minimum investment in Class Y shares of $1,000,000 who purchase through certain broker-dealers or directly from the transfer agent;

◼

Clients of state-registered or federally registered investment advisors (RIAs), where such RIAs trade through institutional trading platforms approved by a Fund, who invest at least $2,500;

◼

Brokerage platforms of firms that have agreements with the Distributor to offer such shares solely when acting as an agent for the investor. An investor transacting in Class Y shares through these programs may be required to pay a commission and/or other forms of compensation to the broker;

◼

Pension, profit sharing, employee benefit and other similar plans and trusts that invest in a Fund;

◼

Investors who purchase through Advisory Programs with an approved financial intermediary;

◼

Investment advisory clients of the Adviser; or

◼

Investment advisors, consultants, broker-dealers and other financial intermediaries investing for their own accounts or for the accounts of their immediate family members.

The Fund may allow a lower initial investment if, in the opinion of the Distributor, the investor has the adequate intent and availability of assets to reach a future level of investment of $1,000,000.

**Eligibility of Individuals Associated with the Victory Funds and Fund Service Providers**

Current and retired Victory Fund trustees and the officers, directors, trustees, employees, and family members of employees of the Adviser or Affiliated Providers are eligible to purchase the lowest expense share class offered by the Fund. In the case of Class A shares, such purchases are not subject

**19**

------

Choosing a Share Class

------

to a front-end sales charge. "Affiliated Providers" are affiliates of the Adviser and organizations that provide services to Victory Portfolios (the "Trust").

&nbsp;&nbsp; The Fund reserves the right to change the criteria for eligible investors and<br> the investment minimums.<br>

**20**

------

How to Buy Shares

------

**Opening an Account**

If you would like to open an account, you will first need to complete an Account Application.

You can obtain an Account Application by calling Victory Funds Customer Service at 800-539-FUND (800-539-3863). You can also download an Account Application by visiting the Victory Funds' website, VictoryFunds.com, and clicking on the Victory Funds Account Application link. Send the completed Account Application, along with a check made payable to the Victory Funds, at the following address:

**Victory Funds**

P.O. Box 182593

Columbus, OH 43218-2593

You can also obtain an Account Application by contacting your Investment Professional. When you invest through an Investment Professional, the procedures for buying, selling, and exchanging shares and the account features and policies may differ. In addition to any limitations described in this Prospectus, an Investment Professional or other intermediary may also place other limits on your ability to use the services of the Fund. Sometimes an Investment Professional will charge you for its services. This fee will be in addition to, and unrelated to, the fees and expenses charged by the Fund.

Mutual funds must obtain and verify information that identifies investors opening new accounts. If the Fund are unable to collect the required information, you may not be able to open your account. Additional details about the Fund's Customer Identification Program are available in the section "Important Fund Policies."

The Fund are generally available for purchase in the United States, Puerto Rico, Guam, American Samoa and the U.S. Virgin Islands. Except to the extent otherwise permitted by the Fund's Distributor, the Fund will only accept accounts from U.S. citizens with a U.S. address (including an APO or FPO address) or resident aliens with a U.S. address (including an APO or FPO address) and a U.S. taxpayer identification number.

If you participate in a retirement plan that offers one of the Victory Funds as an option, please consult your employer for information on how to purchase shares of the Victory Funds through the plan, including any restrictions or limitations that may apply.

**Paying for Your Initial Purchase**

If you wish to make an investment directly into the Victory Funds, make your check payable to the "Victory Funds." All checks must be drawn on U.S. banks. If your check is returned as uncollectible for any reason, you will be charged for any resulting fees and/or losses. The Fund does not accept cash, money orders, traveler's checks, credit card convenience checks, or third-party checks. Additionally, bank starter checks are not accepted for the shareholder's initial investment into the Fund. All payments must be denominated in U.S. dollars.

**Minimum Investments**

If you would like to buy Class Y shares, you must be an Eligible Investor, as discussed in the section *Choosing a Share Class — Eligibility Requirements to Purchase*. Eligible Investors may be subject to a minimum investment amount as detailed in that section.

If your account falls below the minimum investment amount, we may ask you to reestablish the minimum investment. If you do not do so within 60 days, we may close your account and send you the value of your account.

The minimum investment required to open an account may be waived or lowered for employees and immediate family members of the employees, of the Adviser, the Administrator, and their affiliates. In addition, the minimum investment required may be waived when the Fund is purchased through an

**21**

------

How to Buy Shares

------

Advisory Program, within qualified retirement plans or in other similar circumstances. Although the Fund may sometimes waive the minimum investment, when it does so, it always reserves the right to reject initial investments under the minimum at its discretion.

There is no minimum investment required to open an account or for additional investments in Victory Simple IRAs.

The Fund reserves the right to change the criteria for eligible investors and the investment minimums.

**Purchasing Additional Shares**

Once you have an existing account, you can make additional investments at any time in any amount (subject to any minimums) in the following ways:

◼

**By Mail**

To ensure that your additional investment is properly credited to your account, use the Investment Stub attached to your confirmation statement and send it with your check to the address indicated.

◼

**By Telephone**

If you have an existing account that has been set up to receive electronic transfers, you can buy additional shares by calling Victory Funds Customer Service at 800-539-FUND (800-539-3863) between 8:00 a.m. and 6:00 p.m. (Eastern Time), Monday through Friday.

◼

**By Exchange**

You may purchase shares of the Fund using the proceeds from the simultaneous redemption of shares of another Victory Fund if it is eligible for an exchange with your Fund. You may initiate an exchange online (if you are a registered user of VictoryFunds.com), by telephone, or by mail. See the section "Exchanging Shares."

◼

**Via the Internet**

If you are a registered user, you may request a purchase of shares through our website at VictoryFunds.com. Your account must be set up for Automated Clearing House ("ACH") payment in order to execute online purchases.

◼

**By ACH**

Your account must be set up for ACH payment in order to execute purchases online or by telephone. It takes about 15 days to set up an ACH account and only domestic member banks may be used. After your account is set up, your purchase amount can be transferred by ACH. Currently, the Fund does not charge a fee for ACH transfers but it reserves the right to charge for this service in the future. Your originating bank may charge a fee for ACH transfers.

◼

**By Wire**

You may buy Fund shares by bank wire transfer of same day funds. Please call Victory Funds Customer Service at 800-539-FUND (800-539-3863) between 8:00 a.m. and 6:00 p.m. (Eastern Time), Monday through Friday for wiring instructions. Any commercial bank can transfer same-day funds by wire.

Although the transfer agent does not currently charge you for receiving same-day funds, it reserves the right to charge for this service in the future. Your bank may charge you for wiring same-day funds. You cannot buy shares for tax-qualified retirement plans by wire transfer.

**22**

------

How to Buy Shares

------

◼

**By Systematic Investment Plan**

To enroll in the Systematic Investment Plan, you should check this box on the Account Application or on the Account Maintenance Form. We will need your bank information and the amount ($50 or more) and frequency of your investment. You can select monthly, quarterly, semi-annual, or annual investments. You should attach a voided personal check so the proper information can be obtained. You must first meet the minimum investment requirement before we will make automatic withdrawals from your bank account and invest it in shares of the Fund.

**Other Purchase Rules You Should Know**

The Fund reserves the right to refuse a purchase order for any reason, including if it believe that doing so would be in the best interest of the Fund or its shareholders. The Fund also reserves the right, without notice, to increase or decrease the minimum amount required to open, convert shares to, or maintain the Fund account, or to add to an existing Fund account.

Keep these addresses handy for purchases, exchanges, or redemptions.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| **BY REGULAR U.S. MAIL** | &nbsp;&nbsp;&nbsp; Victory Funds <br> P.O. Box 182593 <br> Columbus, OH 43218-2593<br>|
| **BY OVERNIGHT MAIL** | &nbsp;&nbsp;&nbsp; Use the following address ONLY for overnight packages:<br> Victory Funds<br> c/o FIS TA Operations<br> 4249 Easton Way, Suite 400<br> Columbus, OH 43219<br> PHONE: 800-539-FUND (800-539-3863)<br>|
| **BY WIRE** | &nbsp;&nbsp;&nbsp; Call 800-539-FUND (800-539-3863) BEFORE wiring money to notify the <br> Fund that you intend to purchase shares by wire and to verify wire <br> instructions.<br>|
| **BY TELEPHONE** | 800-539-FUND (800-539-3863) |
| **ON THE INTERNET** | VictoryFunds.com |

---

**23**

------

How to Exchange Shares

------

&nbsp;&nbsp; There may be limits on the ability to exchange between certain Victory Funds. <br> You can obtain a list of Victory Funds available for exchange by calling <br> 800-539-FUND (800-539-3863) or by visiting VictoryFunds.com<br>

The shares of any class of the Fund may be exchanged for the shares of any other class offered by the Fund or the same class of any other class of any Victory Fund, either through your Investment Professional or directly through the Fund, subject to the conditions described below:

◼

Exchanges are subject to any CDSC, minimum investment limitation, or eligibility requirements described in the applicable Prospectus and SAI. You may be required to provide sufficient information to establish eligibility to exchange into a new share class.

◼

To exchange with another Victory Fund, the other Victory Fund must be eligible for exchange with your Fund.

◼

Shares of the Victory Fund selected for exchange must be available for sale in your state of residence.

If you have questions about these, or any of the Fund's other exchange policies, please consult Victory Customer Service or your Investment Professional before requesting an exchange.

Before exchanging, you should read the Prospectus of the other Victory Fund you wish to exchange into, which may be subject to different risks, fees, and expenses.

**Processing Your Voluntary Exchange/Conversion**

If your exchange or conversion request is received and accepted by the Fund, an Investment Professional or other intermediary by the close of trading as described in the section titled, "Share Price," then your request will be processed the same day. If received after the close of trading, your request will be processed on the next business day. Please contact your financial intermediary regarding the tax consequences of any exchange or conversion.

Exchanges will occur at the respective NAVs of the Fund's share classes involved in the exchange next calculated after receipt and acceptance of your exchange request in good order, plus any applicable sales charge described in the Prospectus. Share class conversions will be based on the respective NAV of each class as of the trade date of the conversion. Consequently, you may receive fewer shares or more shares than originally owned, depending on that day's NAVs.

**24**

------

How to Exchange Shares

------

**Requesting an Exchange**

You can exchange shares of the Fund by telephone, by mail, or via the Internet. You cannot exchange into an account with a different registration or tax identification number.

◼

**By Telephone**

Unless you indicate otherwise on the account application, Victory Customer Service will be authorized to accept exchange instructions received by telephone.

◼

**By Mail**

Send a letter of instruction signed by all registered owners or their legal representatives to the Victory Funds.

◼

**Via the Internet**

You may also exchange shares via the Internet at VictoryFunds.com if you are a registered user.

**Other Exchange Rules You Should Know**

The Fund may refuse any exchange purchase request if the Adviser determines that the request is associated with a market timing strategy. The Fund may terminate or modify the exchange privilege at any time upon 60 days' notice to shareholders.

An exchange of Fund shares for shares of another Victory Fund constitutes a sale for tax purposes unless the exchange is made within an IRA or other tax-deferred account.

For information on how to exchange shares of the Fund that were purchased through your employer's retirement plan, including any restrictions and charges that the plan may impose, please consult your employer.

**25**

------

How to Sell Shares

------

There are a number of convenient ways to sell your shares.<br>

If your redemption request is received in good order by the close of trading on the NYSE, your redemption will be processed the same day. Your redemption will not be processed until the next business day if it is received after the close of trading on the NYSE. You cannot redeem your shares at VictoryFunds.com.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**BY TELEPHONE**<br>

The easiest way to redeem shares is by calling 800-539-FUND (800-539-3863). When you fill out your original application, be sure to check the box marked "Telephone Authorization." You have the following options for receiving your redemption proceeds:

◼

Mail a check to the address of record;

◼

Wire funds to a previously designated domestic financial institution;

◼

Mail a check to a previously designated alternate address; or

◼

Electronically transfer your redemption via ACH to a previously designated domestic financial institution.

Victory Funds' transfer agent records all telephone calls for your protection and takes measures to verify the identity of the caller. If the transfer agent properly acts on telephone instructions and follows reasonable procedures to ensure against unauthorized transactions, none of the Trust, its servicing agents, the Adviser, or the transfer agent will be responsible for any losses. If the transfer agent does not follow these procedures, it may be liable to you for losses resulting from unauthorized instructions.

If there is an unusual amount of market activity and you cannot reach the transfer agent or your Investment Professional by telephone, consider placing your order by mail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**BY MAIL**<br>

Use the regular U.S. mail or overnight mail address to redeem shares. You can use the same mailing addresses listed for purchases. Send us a letter of instruction indicating your Fund account number, amount of redemption, and where to send the proceeds. A Medallion signature guarantee is required for the following redemption requests:

◼

Your account registration has changed within the last 15 business days;

◼

The check is not being mailed to the address on your account;

◼

The check is not being made payable to the owner of the account;

◼

The redemption proceeds are being transferred to another Victory Fund account with a different registration; or

◼

The check or wire is being sent to a different bank account than was previously designated.

You can get a Medallion signature guarantee from a financial institution — such as a commercial bank, broker-dealer, credit union, clearing agency, or savings bank — that is a member of a Medallion signature guarantee program.

**BY WIRE**<br>

If you want to receive your proceeds by wire, you must establish a Fund account that will accommodate wire transactions. If you call before the close of trading on the NYSE, your funds will be wired on the next business day.

**BY ACH**<br>

You may transfer your proceeds by ACH to a domestic bank. Normally, your redemption will be processed on the same day if your request is received before the close of trading on the NYSE. If your request is received after the close of trading it will be processed on the next business day.

**26**

------

How to Sell Shares

------

**Systematic Withdrawal Plan**

If you check this box on the Account Application or on the Account Maintenance Form, we will send monthly, quarterly, semi-annual, or annual payments to the person you designate. The minimum withdrawal is $25, and you must have a balance of $5,000 or more at the time you establish the Systematic Withdrawal Plan. If the payment is to be sent to an account of yours, we will need a voided check to activate this feature. If the payment is to be made to an address different from your account address, we will need a Medallion signature guaranteed letter of instruction. You should be aware that each withdrawal may be a taxable transaction. Also, each withdrawal reduces your account balance, and eventually your account balance may be depleted. However, you cannot automatically close your account using the Systematic Withdrawal Plan. If your balance falls below the initial purchase minimum, we may ask you to bring the account back to the minimum balance. If you decide not to increase your account to the minimum balance, your account may be closed and the proceeds mailed to you.

**Additional Information About Redemptions**

◼

Redemption proceeds from the sale of Fund shares purchased by a check or through ACH will be held until the purchase check or ACH has cleared, which will take up to 10 business days.

◼

We typically expect to send the proceeds from your share redemption within one business day after we execute your order, but we may take up to seven business days to send redemption proceeds, regardless of payment type. When you sell shares through your financial intermediary, you can ask the intermediary to tell you when you can expect to receive the proceeds of your redemption.

◼

The Fund may suspend your right to redeem your shares in the following circumstances:

<sup>◼</sup>

During non-routine closings of the NYSE;

<sup>◼</sup>

When the SEC determines either that trading on the NYSE is restricted or that an emergency prevents the sale or valuation of the Fund's securities; or

<sup>◼</sup>

When the SEC orders a suspension to protect the Fund's shareholders.

◼

The Fund typically uses cash and cash equivalents held in its portfolio or sells portfolio assets to meet redemption requests. In unusual circumstances or under stressed market conditions, the Fund may use other methods to raise cash to meet redemption requests. For example, the Fund may draw funds from a line of credit or borrow available cash held by other Victory Funds under an "interfund lending program" in reliance on an exemptive order from the SEC.

◼

The Fund will pay redemptions by any one shareholder during any 90-day period in cash up to the lesser of $250,000 or 1.00% of the Fund's net assets. The Fund reserves the right to pay the remaining portion "in kind," that is, in portfolio securities rather than cash. Securities received pursuant to an in-kind redemption are subject to market risk until sold and may be subject to brokerage and other fees.

◼

If you choose to have your redemption proceeds mailed to you and either the U.S. Postal Service is unable to deliver the redemption check to you or the check remains outstanding for more than six months, the Fund reserves the right to reinvest the check in shares of the Fund at its then current NAV until you give the Fund different instructions. No interest will accrue on amounts represented by uncashed redemption checks.

**27**

------

Distributions and Taxes

------

&nbsp;&nbsp; **Buying a dividend.** You should check the Fund's distribution schedule before you invest. <br> If you purchase shares when the Fund has undistributed income and gain, you will be <br> "buying a dividend" by paying a higher purchase price per share reflecting the <br> undistributed income and gain and then receiving a portion of the purchase price back <br> in the form of a taxable dividend unless you are investing through a tax-deferred account.<br>

The Fund ordinarily declares and pays dividends from net investment income, if any, annually, and net realized capital gains, if any, annually. The Fund may make additional distributions, if necessary, to comply with U.S. federal tax requirements and avoid U.S. federal income or excise tax.

Each class of shares declares and pays dividends separately.

Distributions can be received in one of the following ways. Please check with your Investment Professional if you are unsure of which option is right for you.

&nbsp;&nbsp; Your choice of distribution should be set up on the original Account Application. <br> If you would like to change the option you selected, please call 800-539-FUND (800-539-3863).<br>

**Reinvestment Option**

You can have distributions automatically reinvested in additional shares of your Fund. If you do not indicate another choice on your Account Application, you will be assigned this option automatically.

**Cash Option**

If you elect to receive your distributions by check, and the distribution amount is $25 or less, the amount will automatically be reinvested in the same Fund. Otherwise, a check will be mailed to you no later than seven days after the dividend payment date. If you choose to have your distribution proceeds mailed to you and either the U.S. Postal Service is unable to deliver the distribution check to you or the check remains outstanding for at least six months, the distribution option on your account will default to the reinvestment option as described above. The Fund reserves the right to reinvest the check in shares of the Fund at its then current NAV until you give the Fund different instructions. No interest will accrue on amounts represented by uncashed distribution checks.

**Income Earned Option**

You can automatically reinvest your dividends in additional Fund shares and have your capital gains paid in cash, or reinvest capital gains and have your dividends paid in cash.

**Directed Distributions Option**

In most cases, you can automatically reinvest distributions in shares of another Victory Fund. If you reinvest your distributions in a different Victory Fund, you may pay a sales charge on the amount of reinvested distributions.

**Directed Bank Account Option**

In most cases, you can automatically transfer distributions to your bank checking or savings account. Under normal circumstances, the transfer agent will transfer your distributions within seven days of the dividend payment date. The bank account must have a registration identical to that of your Fund account.

**28**

------

Distributions and Taxes

------

**Important Information About Taxes** 

&nbsp;&nbsp; The tax information in this Prospectus is provided as general information. You <br> should review the more detailed discussion of federal income tax considerations <br> in the SAI and consult your tax adviser regarding the federal, state, local, or <br> foreign tax consequences resulting from your investment in the Fund.<br>

The Fund generally expects to pay no federal income tax on the earnings and capital gains it distributes to shareholders.

◼

Qualified dividend income received from the Fund by noncorporate shareholders generally will be taxed at long-term capital gain rates to the extent attributable to qualified dividend income received by the Fund, subject to certain holding period requirements. Nonqualified dividends, dividends received by corporate shareholders and dividends from the Fund's short-term capital gains are taxable as ordinary income. Dividends from the Fund's long-term capital gains generally are taxable as long-term capital gains.

◼

You will pay tax on dividends from the Fund whether you receive them in cash, additional shares of the Fund or you reinvest them in shares of another Victory Fund.

◼

Dividends from the Fund that are attributable to interest on certain U.S. government obligations, if any, may be exempt from certain state and local income taxes. The extent to which ordinary dividends are attributable to these U.S. government obligations will be provided on the tax statements you receive from the Fund.

◼

An exchange of the Fund's shares for shares of another Victory Fund will be treated as a sale. When you sell or exchange shares of the Fund, you generally will recognize any gain or loss.

◼

An exchange of one class of the Fund's shares for shares of another class of the same Fund generally constitutes a nontaxable exchange for federal income tax purposes.

◼

Distributions from the Fund and gains from the disposition of your shares may also be subject to state and local income tax.

◼

An additional 3.8% Medicare tax will be imposed on certain net investment income (which includes dividends and gain recognized on a disposition of shares) of certain U.S. individuals, estates, and trusts.

◼

Certain dividends paid to you in January will be taxable as if they had been paid to you the previous December.

◼

Tax statements will be mailed from each Fund by mid-February showing the amounts and tax status of distributions made to you in the prior calendar year.

◼

Because your tax treatment depends on your purchase price and tax position, you should keep your regular account statements for use in determining your tax.

◼

The Fund generally is required by law to provide you and the Internal Revenue Service with certain cost basis information related to the sale or redemption of any of your shares in the Fund acquired on or after January 1, 2012 (including distributions that are reinvested in additional shares of the Fund).

◼

The Fund may be required to withhold tax from dividends and redemption proceeds if you fail to give your correct social security or taxpayer identification number, fail to make required certifications, or the Fund is notified by the Internal Revenue Service that backup withholding is required.

◼

If you are a nonresident alien individual, foreign trust or estate, foreign corporation, or foreign partnership, the Fund's ordinary income dividends may be subject to a 30% U.S. withholding tax. See the section titled "TAXES—Foreign Shareholders" in the SAI for details.

**29**

------

Distributions and Taxes

------

◼

Under the "Foreign Account Tax Compliance Act," unless certain foreign entities comply with certain IRS requirements that generally require them to report information regarding U.S. persons investing in, or holding accounts with, such entities, a 30% U.S. withholding tax may apply to dividends paid by the Fund to such entities. See the section titled "TAXES—Foreign Shareholders" in the SAI for details.

◼

The Fund may provide estimated capital gain distribution information through the website at vcm.com.

◼

Dividends and interest received by the Fund and capital gains recognized by the Fund may give rise to withholding and other taxes imposed by foreign countries. Tax conventions between certain countries and the United States may reduce or eliminate such taxes. You may be able to claim a credit or take a deduction for foreign taxes paid by the Fund if certain requirements are met.

**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-FUND (800-539-3863), and form W-4P (OMB No. 1545-0074 withholding certificate for pension or annuity payments) will be sent electronically.

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.

The foregoing discussion summarizes some of the possible consequences under current federal tax law of an investment in the Fund. It is not a substitute for personal tax advice. The foregoing discussion also does not discuss any state, local, or non-U.S. tax consequences associated with an investment in the Fund. The tax information in this Prospectus is based on tax law in effect on the date of this Prospectus and it does not address any proposals to modify such tax laws. Consult your personal tax advisor about the potential tax consequences of an investment in the shares under all applicable tax laws.

For more specific information, please consult your tax adviser.

**30**

------

Important Fund Policies

------

**Customer Identification Program**

To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens a new account, and to determine whether such person's name appears on government lists of known or suspected terrorists and terrorist organizations.

As a result, the Victory Funds must obtain the following information for each person who opens a new account:

◼

Name;

◼

Date of birth (for individuals);

◼

Residential or business street address (although post office boxes are still permitted for mailing); and

◼

Social security number, taxpayer identification number, or other identifying number.

You may also be asked for a copy of your driver's license, passport, or other identifying document in order to verify your identity. In addition, it may be necessary to verify your identity by cross-referencing your identification information with a consumer report or other electronic database. Additional information may be required to open accounts for corporations and other entities. Federal law prohibits the Victory Funds and other financial institutions from opening a new account unless they receive the minimum identifying information listed above. After an account is opened, the Victory Funds may restrict your ability to purchase additional shares until your identity is verified. The Victory Funds may close your account or take other appropriate action if it is unable to verify your identity within a reasonable time. If your account is closed for this reason, your shares will be redeemed at the NAV next calculated after the account is closed.

**Account Maintenance Information**

For the following non-financial transactions, the Victory Funds require proof that your signature authorizing a transaction is authentic. This verification can be provided in all cases by either a Signature Validation Program ("SVP") stamp or a Medallion signature guarantee ("MSG"). In some instances a Notary Public stamp is an acceptable alternative. As with an MSG, an SVP stamp can also be obtained from a financial institution that is a member of the SVP program.

---

| | | | |
|:---|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp; **Notary** <br> **Public**<br>| **SVP** | **MSG** |
| Change of name  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; x | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; x | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; x |
| Add/change banking instructions  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; x | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; x |
| Add/change beneficiaries  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; x | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; x | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; x |
| Add/change authorized account traders  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; x | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; x |
| Adding a Power of Attorney | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; x | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; x | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; x |
| Add/change Trustee  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; x | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; x | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; x |
| Uniform Transfers to Minors Act/Uniform Gifts to Minors Act custodian <br> change <br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; x | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; x | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; x |

---

**Market Timing**

The Victory Funds discourage frequent purchases and redemptions of Fund shares (market timing). Market timing allows investors to take advantage of market inefficiencies, sometimes to the disadvantage of other shareholders. Market timing increases Fund expenses to all shareholders by increasing portfolio turnover. In addition, market timing could potentially dilute share value for all other shareholders by requiring the Fund to hold more cash than it normally would.

**31**

------

Important Fund Policies

------

The Board has adopted policies and procedures with respect to market timing. In order to prevent or minimize market timing, the Fund (or the Adviser, as appropriate) will:

◼

Employ "fair value" pricing, as described in this Prospectus under Share Price, to minimize the discrepancies between a security's market quotation and its perceived market value, which often gives rise to market timing activity; and

◼

Monitor for suspected market timing based on "short-term transaction" activity, that is, a purchase or redemption of the Fund and, as applicable, a subsequent redemption or purchase of the same Fund, or an exchange of all or part of that same Fund.

In monitoring for market timing activity, we consider, among other things, the frequency of your trades and whether you acquired your Fund shares directly through the transfer agent or whether you combined your trades with a group of shareholders in an omnibus account or otherwise placed your order through a securities dealer or other financial intermediary.

Frequent trading by a shareholder is generally a characteristic of market timing. Therefore, any account in which Fund shares are acquired directly through the transfer agent, or where the Fund can adequately identify the shareholder, with a history of three short-term transactions within 90 days or less is suspected of market timing and the shareholder's trading privileges (other than redemption of Fund shares) will be suspended.

We may make exceptions to the "short-term transaction" policy for certain types of transactions if, in the opinion of the Adviser, under the oversight of the Board, the transactions do not represent short-term or excessive trading or are not abusive or harmful to the Fund, such as, but not limited to, systematic transactions, required minimum retirement distributions, transactions initiated by the Fund or administrator, and transactions by certain qualified funds-of-funds.

If you acquired shares through an omnibus account or otherwise placed your order through a securities dealer, or other financial intermediary (such as investment advisers, broker-dealers, third-party administrators, or insurance companies), and market timing is suspected, different purchase and exchange limitations may apply. We may rely upon a financial intermediary's policy to deter short-term or excessive trading (i) if we believe that the financial intermediary's policy is reasonably designed to detect and deter transactions that are not in the best interests of the Fund, or (ii) if we receive an undertaking from the financial intermediary to enforce short-term or excessive trading policies on behalf of the Fund that provide a substantially similar level of protection for the Fund against such transactions. If you hold your Fund shares through a financial intermediary, you are advised to consult the intermediary to determine what purchase and exchange limitations apply to your account.

We reserve the right to reject or cancel a purchase or exchange order for any reason without prior notice. We will deny your request to purchase or exchange your shares if we believe that the transaction is part of a market timing strategy.

The Funds' market timing policies and procedures may be modified or terminated at any time under the oversight of the Board.

**Portfolio Holdings Disclosure**

A description of the Fund's policies and procedures with respect to the disclosure of the Funds' portfolio securities is available in the Funds' SAI, which is available upon request and on the Funds' website at VictoryFunds.com.

**32**

------

Important Fund Policies

------

**Performance**

The Victory Funds may advertise the performance of the Fund by comparing it to other mutual funds with similar objectives and policies. Performance information also may appear in various publications. Any fees charged by Investment Professionals may not be reflected in these performance calculations.

Advertising information may include the average annual total return of the Fund calculated on a compounded basis for specified periods of time. Total return information will be calculated according to rules established by the SEC. Such information may include performance rankings and similar information from independent organizations and publications.

**Statements and Reports**

You will receive a periodic statement reflecting any transactions that affect the balance or registration of Fund shares in your account. You will receive a confirmation after any purchase, exchange, or redemption. If your account has been set up by an Investment Professional, Fund activity will be detailed in that account's statements. Share certificates are not issued. Twice a year, you will receive a financial report of the Fund. By February 15th of each year, you will be mailed an IRS form reporting distributions for the previous year, which also will be filed with the IRS.

**Shareholder Communications**

In order to eliminate duplicate mailings to an address at which two or more shareholders with the same last name reside, the Victory Funds may send only one copy of any shareholder reports, proxy statements, prospectuses and their supplements, unless you have instructed us to the contrary. You may request that the Victory Funds send these documents to each shareholder individually by calling the Victory Funds at 800-539-FUND (800-539-3863), and they will be delivered promptly.

While this Prospectus and the SAI of the Trust describe pertinent information about the Trust and the Fund, neither this Prospectus nor the SAI represents a contract between the Trust or the Fund and any shareholder.

**33**

------

Financial Highlights

------

Because the Fund had not commenced operations prior to the date of this prospectus, financial highlights are not available.

**34**

------

VP_TEMSCF (05/26)

**By mail:**

Victory Funds

P.O. Box 182593

Columbus, OH 43218-2593

![](img9143d0c42.gif)

P.O. Box 182593

Columbus, OH 43218-2593

**Statement of Additional Information ("SAI"):** The SAI contains more information about the Fund's operations, investment restrictions, policies and practices. The SAI is incorporated by reference into this Prospectus, which means that it is legally part of this Prospectus, even if you do not request a copy.

**Annual/Semi-Annual Reports and Form N-CSR/Form N-CSRS:** Annual and semi-annual reports contain more information about the Fund's investments and the market conditions and investment strategies that significantly affected the Fund's performance during the most recent fiscal period. The Fund's Form N-CSR and Form N-CSRS filings contain the Fund's annual and semi-annual financial statements.

**How to Obtain Information:** You may obtain a free copy of the SAI, annual and semi-annual reports and other information such as Fund financial statements and ask questions about the Fund or your accounts, online at VictorySharesLiterature.com, by contacting the Fund at the following address or telephone number, or by contacting your financial intermediary.

**By telephone:**

Call Victory Funds at

800-539-FUND (800-539-3863)

You also can get information about the Fund (including the SAI, other reports and other information such as Fund financial statements) from the Securities and Exchange Commission (SEC) on the SEC's Edgar database at sec.gov, or after paying a duplicating fee, by electronic request sent to the following e-mail address: publicinfo@sec.gov.

Investment Company Act File Number 811-4852

------

![](gofdlv2bevv728cnsm832.jpg)

---

| | |
|:---|:---|
|  | **VICTORY PORTFOLIOS** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**STATEMENT OF ADDITIONAL INFORMATION** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**STATEMENT OF ADDITIONAL INFORMATION** |
|  | **MAY 25, 2026** |
| **FUND NAME** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**CLASS Y** |
| Victory Trivalent Emerging Markets Small-Cap Fund | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VTESX |

---

The Fund is a series of Victory Portfolios (the "Trust")

This Statement of Additional Information ("SAI") is not a prospectus and should be read in conjunction with the Fund's prospectus, dated May 25, 2026, as it may be amended or supplemented from time to time (the "Prospectus"). This SAI is incorporated by reference, in its entirety, into the Prospectus. Copies of the Prospectus of the Fund can be obtained without charge upon request made to Victory Funds, P.O. Box 182593, Columbus, Ohio 43218-2593, by calling toll free 800-539-FUND (800-539-3863) at VictoryFunds.com.

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| **GENERAL INFORMATION** | **2** |
| **INVESTMENT OBJECTIVES, POLICIES, AND LIMITATIONS** | **2** |
| **INVESTMENT PRACTICES, INSTRUMENTS AND RISKS** | **4** |
| **DETERMINING NET ASSET VALUE ("NAV") AND VALUING PORTFOLIO SECURITIES** | **20** |
| **ADDITIONAL PURCHASE, EXCHANGE, AND REDEMPTION INFORMATION** | **21** |
| **MANAGEMENT OF THE TRUST** | **23** |
| **CONTROL PERSONS AND PRINCIPAL SHAREHOLDERS** | **30** |
| **INVESTMENT ADVISER AND OTHER SERVICE PROVIDERS** | **30** |
| **PORTFOLIO MANAGERS** | **35** |
| **DISTRIBUTION PLANS** | **36** |
| **CODE OF ETHICS** | **36** |
| **PROXY VOTING POLICIES AND PROCEDURES** | **36** |
| **PORTFOLIO TRANSACTIONS AND BROKERAGE COMMISSIONS** | **38** |
| **DIVIDENDS, CAPITAL GAINS AND DISTRIBUTIONS** | **40** |
| **TAXES** | **41** |
| **ADDITIONAL INFORMATION** | **49** |

---

**GENERAL INFORMATION**

The Trust was organized as a Delaware statutory trust (formerly referred to as a "business trust") on December 6, 1995, as a successor to a company of a similar name organized as a Massachusetts business trust on February 5, 1986. The Trust is an open-end management investment company. The Trust currently consists of 30 series of units of beneficial interest ("shares"). This SAI relates to the shares of one series of the Trust (the "Fund").

Victory Capital Management Inc. (the "Adviser" or "Victory Capital") is the Fund's investment adviser. The Fund's investment objective(s), restrictions and policies are more fully described below and in the Fund's or each share class's Prospectus, as applicable. The Trust's Board of Trustees (the "Board" or "Trustees") may organize and offer shares of a new fund or liquidate the Fund or share class at any time.

Much of the information contained in this SAI expands on subjects discussed in The Fund's Prospectus. Capitalized terms not defined herein are used as defined in the Prospectuses. No investment in shares of the Fund should be made without first reading that Fund's Prospectus.

**INVESTMENT OBJECTIVES, POLICIES, AND LIMITATIONS**

**Investment Objectives**

The Fund's investment objective is non-fundamental, meaning it may be changed by a vote of the Trustees without a vote of the holders of a majority of the Fund's outstanding voting securities. There can be no assurance that the Fund will achieve its investment objective.

**Investment Policies and Limitations of the Fund**

Unless a policy of the Fund is expressly deemed to be a fundamental policy, changeable only by an affirmative vote of the holders of a majority of that Fund's outstanding voting securities, the Fund's policies are non-fundamental and may be changed without a shareholder vote.

The Fund may, following notice to its shareholders, employ other investment practices that presently are not contemplated for use by the Fund or that currently are not available but that may be developed to the extent such investment practices are both consistent with the Fund's investment objective and legally permissible for the Fund. Such investment practices, if they arise, may involve risks that exceed those involved in the activities described in the Fund's Prospectus.

The Fund's classification and sub-classification is a matter of fundamental policy. The Fund is classified as an open-end investment company. The Fund is sub-classified as a diversified investment company, which under the Investment Company Act of 1940, as amended ("1940 Act") means that, with respect to 75% of the Fund's total assets, the Fund may not invest in securities of any issuer if, immediately after such investment, (i) more than 5% of the total assets of the Fund (taken at current value) would be invested in the securities of that issuer or (ii) more than 10% of the outstanding voting securities of the issuer would be held by the Fund (this limitation does not apply to obligations of the U.S. government, its agencies or instrumentalities, and securities of other investment companies). A diversified fund is not subject to this limitation with respect to the remaining 25% of its total assets. In addition, the Fund has elected to qualify as a "regulated investment company" under the United States Internal Revenue Code of 1986, as amended (the "Code"). To qualify as a regulated investment company, the Fund must meet certain diversification requirements as determined at the close of each quarter of each taxable year. The Code's diversification test is described in "TAXES."

The policies and limitations stated in this SAI supplement the Fund's investment policies set forth in The Fund's Prospectus. Unless otherwise noted, whenever an investment policy or limitation states a maximum percentage of the Fund's assets that may be invested in any security or other asset, or sets forth a policy regarding quality standards, such standard or percentage limitation will be determined immediately after and as a result of the Fund's acquisition of such security or other asset except in the case of borrowing (or other activities that may be deemed to result in the issuance of a "senior security" under the 1940 Act). Accordingly, any subsequent change in values, net assets, or other circumstances will not be considered when determining whether the investment complies with the Fund's investment policies and limitations. If the value of the Fund's holdings of illiquid investments at any time exceeds the percentage limitation applicable at the time of acquisition due to subsequent fluctuations in value or other reasons, the Board will consider what actions, if any, are appropriate to maintain adequate liquidity.

**Fundamental Investment Policies and Limitations of the Fund**

The following investment policies and limitations are fundamental and may not be changed without the affirmative vote of the holders of a majority of the Fund's outstanding voting securities, as defined under the 1940 Act. Under the 1940 Act, the vote of a majority of the outstanding voting securities of the Fund means the affirmative vote of the lesser of (a) 67% or more of the shares of the Fund present at a meeting at which the holders of more than 50% of the outstanding shares of the Fund are represented in person or by proxy, or (b) more than 50% of the outstanding shares of the Fund. Portions of the Fund's fundamental investment restrictions (e.g., references to

"except as permitted under the 1940 Act, and as interpreted or modified from time to time by regulatory authorities having jurisdiction") provide the Fund with flexibility to change limitations in connection with changes in applicable law, rules, regulations or exemptive relief. The language used in these restrictions provides the necessary flexibility to allow the Board to respond efficiently to these kinds of developments without the delay and expense of a shareholder meeting.

**Senior Securities**

The Fund may not issue senior securities, except as permitted under the 1940 Act, and as interpreted or modified from time to time by regulatory authorities having jurisdiction.

Rule 18f-4 under the 1940 Act permits the Fund to enter into Derivatives Transactions (as defined below) and certain other transactions notwithstanding the restrictions on the issuance of "senior securities" under Section 18 of the 1940 Act. Section 18 of the 1940 Act, among other things, prohibits open-end funds, including the Fund, from issuing or selling any "senior security," other than borrowing from a bank (subject to a requirement to maintain 300% "asset coverage").

Under Rule 18f-4, "Derivatives Transactions" include the following: (1) any swap, security-based swap (including a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination of the foregoing, or any similar instrument, under which the Fund is or may be required to make any payment or delivery of cash or other assets during the life of the instrument or at maturity or early termination, whether as margin or settlement payment or otherwise; (2) any short sale borrowing; (3) reverse repurchase agreements and similar financing transactions (e.g., recourse and non-recourse tender option bonds, and borrowed bonds), if the Fund elect to treat these transactions as Derivatives Transactions under Rule 18f-4; and (4) when-issued or forward-settling securities (e.g., firm and standby commitments, including to-be-announced ("TBA") commitments, and dollar rolls) and non-standard settlement cycle securities, unless the Fund intends to physically settle the transaction and the transaction will settle within 35 days of its trade date.

Unless the Fund is relying on the Limited Derivatives User Exception (as defined below), the Fund must comply with Rule 18f-4 with respect to its Derivatives Transactions. Rule 18f-4, among other things, requires the Fund to adopt and implement a comprehensive written derivatives risk management program ("DRMP") and comply with a relative or absolute limit on the Fund's leverage risks calculated based on value-at-risk ("VaR"). The DRMP is administered by a "derivatives risk manager," who is appointed by the Board, including a majority of Independent Trustees, and periodically reviews the DRMP and reports to the Board.

Rule 18f-4 provides an exception from the DRMP, VaR limit and certain other requirements if the Fund's "derivatives exposure" (as defined in Rule 18f-4) is limited to 10% of its net assets (as calculated in accordance with Rule 18f-4) and the Fund adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the "Limited Derivatives User Exception"). As of the date of this SAI, the Fund relies on the Limited Derivatives User Exception.

**Underwriting**

The Fund may not underwrite securities issued by others, except to the extent that the Fund may be considered an underwriter within the meaning of the Securities Act of 1933, as amended (the "Securities Act"), in the disposition of restricted securities.

**Borrowing**

The Fund may not borrow money, except as permitted under the 1940 Act, or by order of the Securities and Exchange Commission ("SEC") and as interpreted or modified from time to time by regulatory authorities having jurisdiction.

The Fund's ability to borrow money is limited by its investment policies and limitations, by the 1940 Act, and by applicable exemptions, no action letters, interpretations, and other pronouncements issued from time to time by regulatory authorities, including the SEC and its staff. Under the 1940 Act, the Fund is required to maintain continuous asset coverage (that is, total assets including the proceeds of borrowings, less liabilities excluding borrowings) of not less than 300% of the amount borrowed, with an exception for borrowings not in excess of 5% of the Fund's total assets made for temporary purposes. Any borrowings for temporary purposes in excess of 5% are subject to the minimum 300% asset coverage requirement. If the value of the assets set aside to meet the 300% asset coverage were to decline below 300% due to market fluctuations or other causes, the Fund may be required to sell some of its portfolio holdings within three days (excluding Sundays and holidays) to reduce the debt and comply with the 300% minimum asset coverage requirement, even in circumstances where it is considered disadvantageous from an investment perspective to sell securities at that time or at the prices then available.

**Real Estate**

The Fund may not purchase or sell real estate unless acquired as a result of direct ownership of securities or other instruments. This restriction shall not prevent any of these Fund from investing in the following: (i) securities or other instruments backed by real estate;

(ii)securities of real estate operating companies; or (iii) securities of companies engaged in the real estate business, including real estate investment trusts. This restriction does not preclude any of the Fund from buying securities backed by mortgages on real estate or securities of companies engaged in such activities.

**Lending**

The Fund may not make loans, except as permitted under the 1940 Act, and as interpreted or modified from time to time by regulatory authorities having jurisdiction.

Generally, the 1940 Act prohibits loans if a fund's investment policies do not permit loans, and if the loans are made, directly or indirectly, to persons deemed to control or to be under common control with the registered investment company.

**Commodities**

The Fund may not purchase or sell physical commodities unless acquired as a result of ownership of securities or other instruments (but this shall not prevent the Fund from purchasing or selling options and futures contracts or from investing in securities or other instruments backed by physical commodities).

**Concentration**

The Fund may not concentrate its investments in a particular industry, as the term "concentration" is used in the 1940 Act, and as interpreted or modified from time to time by regulatory authorities having jurisdiction. This restriction shall not prevent any Fund from investing all of its assets in a "master" fund that has adopted similar investment objectives, policies and restrictions.

Concentration means investing more than 25% of the Fund's net assets in a particular industry or a specified group of industries.

**Non-Fundamental Investment Policies and Limitations of the Fund**

The Fund has an investment policy that requires it to invest at least 80% of its assets in the type of security suggested by its name. To the extent required by SEC rules, the policy may be changed only upon at least 60 days' prior written notice to the applicable Fund's shareholders.

**INVESTMENT PRACTICES, INSTRUMENTS AND RISKS**

In addition to the principal investment strategies and the principal risks of the Fund described in the Prospectus, the Fund may, but will not necessarily, employ other investment practices and may be subject to additional risks which are described further below. Unless a strategy or policy described below is specifically prohibited with respect to a particular Fund by the investment restrictions listed in the Prospectus, under "Investment Objectives Policies and Limitations" in this SAI, or by applicable law, the Fund may, but will not necessarily, engage in each of the practices described below.

**Equity Securities**

Equity securities represent ownership interests in a company or partnership and consist of common stocks, preferred stocks, warrants to acquire common stock, securities convertible into common stock, and investments in master limited partnerships ("MLPs"). Investments in equity securities in general are subject to market risks that may cause their prices to fluctuate over time. Fluctuations in the value of equity securities in which the Fund invests will cause the net asset value of the Fund to fluctuate. The Fund may purchase equity securities traded in the United States on registered exchanges or the over-the-counter market. Among other types of securities described further below, equity securities include:

• **Common stocks** represent an equity or ownership interest in an issuer. In the event an issuer is liquidated or declares bankruptcy, the claims of owners of bonds and preferred stock take precedence over the claims of those who own common stock.

• **Preferred stocks** combine qualities both of equity and debt securities. Individual issues of preferred stock will have those rights and liabilities that are spelled out in the governing document. Preferred stocks usually pay a fixed dividend per quarter (or annum) and are senior to common stock in terms of liquidation and dividend rights and preferred stocks typically do not have voting rights.

• **Warrants** give the Fund the right to purchase equity securities from the issuer at a specific price (the strike price) for a limited period of time. The strike price of warrants typically is much lower than the current market price of the underlying securities, yet warrants are subject to greater price fluctuations. As a result, warrants may be more volatile investments than the underlying securities and may offer greater potential for capital appreciation as well as capital loss.

Unlike bondholders, who have preference to a company's earnings and cash flow, preferred stockholders, followed by common stockholders in order of priority, are entitled only to the residual amount after a company meets its other obligations. For this reason, the value of a company's stock will usually react more strongly to actual or perceived changes in the company's financial condition or prospects than its debt obligations. Stockholders of a company that fares poorly can lose money.

Stock markets tend to move in cycles with short or extended periods of rising and falling stock prices. The value of a company's stock may fall because of, among other reasons: factors that directly relate to that company, such as decisions made by its management or lower demand for the company's products or services; factors affecting an entire industry, such as increases in production costs; and changes in general financial market conditions that are relatively unrelated to the company or its industry, such as changes in interest rates, currency exchange rates or inflation rates. Because preferred stock is generally junior to debt securities and other obligations of

the issuer, deterioration in the credit quality of the issuer will cause greater changes in the value of a preferred stock than in a more senior debt security with similar stated yield characteristics.

**International and Foreign Investments**

**Foreign Securities - General.** The Fund may invest in foreign securities. There is no limit on the Fund's investments in foreign securities investments.

Income and gains on foreign securities may be subject to foreign withholding taxes. Investors should consider carefully the substantial risks involved in securities of companies and governments of foreign nations, which are in addition to the usual risks inherent in domestic investments. There may be less publicly available information about foreign companies comparable to the reports and ratings published about companies in the United States. Foreign companies are not generally subject to uniform accounting, auditing and financial reporting standards, and auditing practices and requirements may not be comparable to those applicable to United States companies. Foreign markets have substantially less trading volume than the New York Stock Exchange ("NYSE") and securities of some foreign companies are less liquid and more volatile than securities of comparable United States companies. Commission rates in foreign countries, which are generally fixed rather than subject to negotiation as in the United States, are likely to be higher. In many foreign countries there is less government supervision and less regulation of stock exchanges, brokers, and listed companies than in the United States. Such concerns are particularly heightened in emerging market countries and Eastern European countries.

Issuers of foreign securities may also suffer from social, political, and economic instability. Such instability can lead to illiquidity or price volatility in foreign securities traded on affected markets. Foreign issuers may be subject to the risk that during certain periods the liquidity of securities of a particular issuer or industry, or all the securities within a particular region, will be adversely affected by economic, market or political events, or adverse investor perceptions, which may cause temporary or permanent devaluation of the relevant securities. In addition, if a market for a foreign security closes as a result of such instability, it may be more difficult to obtain accurate independently sourced prices for securities traded on these markets and may be difficult to value the effected foreign securities for extended periods of time.

In connection with the purchase or sale of securities denominated in foreign currencies, the Adviser endeavors to buy and sell foreign currencies on as favorable a basis as practicable. Some price spread on currency exchange (to cover service charges) may be incurred, particularly when the Fund changes investments from one country to another or when proceeds of the sale of Fund shares in U.S. dollars are used for the purchase of securities in foreign countries. Also, some countries may adopt policies that would prevent the Fund from transferring cash out of the country or withhold portions of interest and dividends at the source. There is the possibility of expropriation, nationalization, or confiscatory taxation, withholding and other foreign taxes on income or other amounts, foreign exchange controls (which may include suspension of the ability to transfer currency from a given country), default in foreign government securities, political or social instability or diplomatic developments that could affect investments in securities of issuers in foreign nations.

Foreign securities markets have different clearance and settlement procedures, and in certain markets there have been times when settlements have been unable to keep pace with the volume of securities transactions, making it difficult to conduct such transactions. Delays in settlement could result in temporary periods when assets of the Fund are uninvested and no return is earned thereon. The inability of the Fund to make intended security purchases due to settlement problems could cause the Fund to miss attractive investment opportunities. Inability to dispose of portfolio securities due to settlement problems could result either in losses to the Fund due to subsequent declines in value of the portfolio security or, if the Fund has entered into a contract to sell the security, could result in possible liability to the purchaser. Furthermore, problems with the timely settlement of foreign securities transactions may impair the Fund's ability to value those securities accurately.

The Fund may be affected either unfavorably or favorably by fluctuations in the relative rates of exchange between the currencies of different nations, by exchange control regulations and by indigenous economic and political developments. Changes in foreign currency exchange rates will influence values within the Fund from the perspective of U.S. investors, and may also affect the value of dividends and interest earned, gains and losses realized on the sale of securities, and net investment income and gains, if any, to be distributed to shareholders by the Fund. The rate of exchange between the U.S. dollar and other currencies is determined by the forces of supply and demand in the foreign exchange markets. These forces are affected by the international balance of payments and other economic and financial conditions, government intervention, speculation and other factors. The Adviser will attempt to avoid unfavorable consequences and to take advantage of favorable developments in particular nations where, from time to time, it places the Fund's investments.

The exercise of this flexible policy may include decisions to purchase securities with substantial risk characteristics and other decisions such as changing the emphasis on investments from one nation to another and from one type of security to another. Some of these decisions may later prove profitable and others may not. No assurance can be given that profits, if any, will exceed losses.

**Foreign Securities — Emerging Market Countries.** There are greater risks involved in investing in companies in emerging market countries than those associated with investments in developed foreign markets. These risks, among others, include (i) less social, political and economic stability; (ii) the small current size of the markets for such securities and the currently low or nonexistent volume of trading and lower levels of government regulation of the markets, which may result in a relative lack of liquidity, greater price volatility and higher risk of settlement disruption and means the market in an emerging market country may be dominated by a few issues or

sectors or only a few investors; (iii) high levels of debt and the potential for future periods of severe currency devaluation, (iv) inflation or recession; certain national policies which may restrict the Fund's investment opportunities, including restrictions on investment in issuers or industries deemed sensitive to national interest; (iv) foreign taxation; (v) the absence of developed legal structures governing private or foreign investment or allowing for judicial redress for injury to private property or resulting in disparate treatment of holders of the same class of shares of a company; (vi) the absence, in some cases, of a capital market structure or market-oriented economy; and

(vii)the possibility that economic developments may be slowed or reversed by unanticipated political or social events in such countries. Investments in emerging market countries also may involve heightened risks of nationalization, expropriation and confiscatory taxation. The governments of a number of emerging market countries expropriated large amounts of private property in the past, in many cases without adequate compensation, and there can be no assurance that such expropriation will not occur in the future. In the event of such expropriation, the Fund could lose a substantial portion of any investments it has made in the affected countries. Further, no accounting standards exist in most emerging market countries and different or substantially less information about issuers may be available to investors. Finally, even though certain emerging market currencies may be convertible into United States dollars, the conversion rates may be artificial rather than reflecting their actual market values and may be adverse to the Fund.

Investment in emerging market countries may require special custody or other arrangements before investing. The securities settlement procedures in emerging market countries tend to be less sophisticated, and the Fund therefore may be required to deliver securities before receiving payment and may be unable to complete transactions during market disruptions. Limited liquidity, volume and information and heightened volatility may make emerging markets securities more difficult to fair value. The factors discussed above may result in increased transaction costs.

Emerging countries may be subject to a substantially greater degree of economic, political and social instability and disruption than more developed countries. This instability may result from, among other things: (i) authoritarian governments or military involvement in political and economic decision making, including changes or attempted changes in governments through extra-constitutional means;

(ii)popular unrest associated with demands for improved political, economic or social conditions; (iii) internal insurgencies; (iv) hostile relations with neighboring countries; (v) ethnic, religious and racial disaffection or conflict; and (vi) the absence of developed legal structures governing foreign private investments and private property; (vii) the small current size of the markets for such securities and the currently low or nonexistent volume of trading, which result in a lack of liquidity and in greater price volatility; (viii) certain national policies which may restrict the Fund's investment opportunities, including restrictions on investment in issuers or industries deemed sensitive to national interest; (ix) foreign taxation; (x) the absence, in some cases, of a capital market structure or market-oriented economy; or (xi) the possibility that economic developments may be slowed or reversed by unanticipated political or social events in such countries. Such economic, political, and social instability could disrupt the principal financial markets in which the Fund may invest and adversely affect the value of the Fund's assets. The Fund's investments can also be adversely affected by any increase in taxes or by political, economic, or diplomatic developments.

The economies of emerging countries may suffer from unfavorable growth of gross domestic product, rates of inflation, capital reinvestment, resources, self-sufficiency, and balance of payments. Many emerging countries have experienced in the past, and continue to experience, high rates of inflation. In certain countries inflation has at times accelerated rapidly to hyperinflationary levels, creating a negative interest rate environment, and sharply eroding the value of outstanding financial assets in those countries. Other emerging countries, on the other hand, have recently experienced deflationary pressures and are in economic recessions. In addition, many emerging countries are also highly dependent on international trade and exports, including exports of oil and other commodities to sustain their economic growth. As a result, emerging countries are particularly vulnerable to downturns of the world economy. The recent global financial crisis tightened international credit supplies and weakened global demand for their exports. As a result, certain of these economies faced significant economic difficulties, which caused some emerging market economies to fall into recession. Although economies in certain emerging countries have recently shown signs of recovery, such recovery may be gradual as weak economic conditions in Europe, Asia and North America may continue to suppress demand for exports from emerging countries.

**Depositary Receipts and New York Registered Shares.** The Fund may invest in depositary receipts. Depositary receipts are instruments generally issued by domestic banks or trust companies that represent the deposits of a security of a foreign issuer. Generally, investors may pay a fee to convert depositary receipts to the home-market shares.

American Depositary Receipts ("ADRs"), European Depositary Receipts ("EDRs"), Global Depositary Receipts ("GDRs"), Holding Company Depositary Receipts ("HOLDRs"), New York Registry Shares ("NYRs") and American Depositary Shares ("ADSs") are considered foreign securities. ADRs are traded in U.S. dollars on U.S. exchanges or over-the-counter, are typically issued by a U.S. bank or trust company, and evidence ownership of underlying foreign securities. Certain institutions issuing ADRs may not be sponsored by the issuer. A non-sponsored depositary may not provide the same shareholder information that a sponsored depositary is required to provide under its contractual arrangements with the issuer. EDRs are issued by European financial institutions and typically trade in Europe and GDRs are issued by European financial institutions and typically trade in both Europe and the United States. HOLDRs are fixed baskets of U.S. or foreign stocks that give an investor an ownership interest in each of the underlying stocks. NYRs, also known as Guilder Shares since most of the issuing companies are Dutch, are dollar-denominated certificates issued by foreign companies specifically for the U.S. market. ADSs are shares issued under a deposit agreement that represents an underlying security in the issuer's home country. (An ADS is the actual share trading, while an ADR represents a bundle of ADSs.) Investments in these types of securities involve similar risks to investments in foreign securities.

Generally, foreign security depositary receipts in registered form are designed for use in the U.S. securities market and foreign security depositary receipts in bearer form are designed for use in securities markets outside the United States. Depositary receipts in which the Fund may invest typically are denominated in U.S. dollars, but may be denominated in other currencies. Depositary receipts may be issued pursuant to sponsored or unsponsored programs. In sponsored programs, an issuer has made arrangements to have its securities traded in the form of depositary receipts. In unsponsored programs, the issuer may not be directly involved in the creation of the program.

Although regulatory requirements with respect to sponsored and unsponsored programs are generally similar, in some cases it may be easier to obtain financial information from an issuer that has participated in the creation of a sponsored program. Accordingly, there may be less information available regarding issuers of securities underlying unsponsored programs and there may not be a correlation between such information and the market value of the depositary receipts. Depositary receipts evidencing ownership of a foreign corporation also involve the risks of other investments in foreign securities. For purposes of the Fund's investment policies, the Fund's investments in depositary receipts will be deemed to be investments in the underlying securities.

Unlike depositary receipts of foreign companies, NYRs are not receipts backed by the home market security, but represent dollar- denominated direct claims on the issuing company's capital. Investment in NYRs, therefore, involves similar risks to investing directly in other types of foreign securities. Like depositary receipts, however, investors may pay a fee to convert to the home-market shares. In addition, during periods of social, political, or economic unrest or instability in a country or region, the value of foreign securities traded on United States' exchanges tied to such country or region, such as ADRs and GDRs, could be affected by, among other things, increasing price volatility, illiquidity, or the closure of the primary market on which the securities underlying the foreign securities are traded.

**Foreign Currency Transactions.** In order to protect against a possible loss on investments resulting from a decline or appreciation in the value of a particular foreign currency against the U.S. dollar or another foreign currency or to facilitate local settlements or to protect against currency exposure in connection with distributions to Fund shareholders, the Fund is authorized, but is not required, to enter into forward foreign currency exchange contracts ("forward currency contracts") and spot currency contracts ("spot contracts"). Other currency transactions include currency futures, options on currencies, and currency swaps. Forward currency contracts involve a privately negotiated obligation to purchase or sell (with delivery generally required) a specified currency at a future date, which may be any fixed number of days from the date of the contract agreed upon by the parties, at a price set at the time of the contract. Neither forward currency contracts nor spot contracts eliminate fluctuations in the values of portfolio securities but rather allow the Fund to establish a rate of currency exchange for a future point in time or purchase currency at a particular point in time. Spot contracts involve the purchase of foreign currency at the current rate, typically in an effort to facilitate transactions in foreign securities. A currency swap is an agreement to exchange cash flows based on the notional difference among two or more currencies and operates similarly to an interest rate swap as described in this SAI. These instruments are subject to the risk that the counterparty will default.

The Fund may enter into currency transactions with counterparties that have received (or the guarantors of the obligations that have received) a credit rating of A-1 or P-1 by S&P or Moody's, respectively, or that have an equivalent rating from an NRSRO or are determined to be of equivalent credit quality by the Adviser. Ratings represent a rating agency's opinion regarding the quality of the security and are not a guarantee of quality. In addition, rating agencies may fail to make timely changes to credit ratings in response to subsequent events and a rating may become stale in that it fails to reflect changes in an issuer's financial condition. See Appendix A to this SAI for a more detailed discussion of securities ratings.

The Fund's dealings in forward currency contracts and other currency transactions such as futures, options, options on futures and swaps will be limited to hedging involving either specific transactions or portfolio positions. Transaction hedging is entering into a currency transaction with respect to specific assets or liabilities of the Fund, which will generally arise in connection with the purchase or sale of its portfolio securities or the receipt of income therefrom. Position hedging is entering into a currency transaction with respect to portfolio security positions denominated or generally quoted in that currency.

The Fund will not enter into a transaction to hedge currency exposure to an extent greater, after netting all transactions intended wholly or partially to offset other transactions, than the aggregate market value (at the time of entering into the transaction) of the securities held in its portfolio that are denominated or generally quoted in or currently convertible into such currency, other than with respect to proxy hedging as described below.

The Fund may also cross-hedge currencies by entering into transactions to purchase or sell one or more currencies that are expected to decline in value relative to other currencies to which the Fund has or in which the Fund expects to have portfolio exposure.

When the Adviser anticipates that a particular foreign currency may decline substantially relative to the U.S. dollar or other leading currencies, in order to reduce risk, the Fund may, but is not obligated to, enter into a forward currency contract to sell, for a fixed amount, the amount of foreign currency approximating the value of some or all of the Fund's securities denominated in such foreign currency. Similarly, when the obligations held by the Fund create a short position in a foreign currency, the Fund may enter into a forward currency contract to buy, for a fixed amount, an amount of foreign currency approximating the short position. With respect to any forward currency contract, it will not generally be possible to match precisely the amount covered by that contract and the value of the securities involved due to the changes in the values of such securities resulting from market movements between the date the forward contract is entered into and the date it matures. The projection of short-term currency market movement is extremely difficult, and the successful execution of a short-term hedging strategy is highly uncertain. Foreign currency transactions involve the risk that anticipated currency movements

will not be accurately predicted and that the Fund's hedging strategies will be ineffective. In addition, while forward currency contracts may offer protection from losses resulting from declines or appreciation in the value of a particular foreign currency, they also limit potential gains that might result from changes in the value of such currency. The Fund will also incur costs in connection with forward currency contracts and conversions of foreign currencies and U.S. dollars.

When entering into a contract for the purchase or sale of a security denominated in a foreign currency, the Fund may enter into a forward currency contract for the amount of the purchase or sale price to protect against variations, between the date the security is purchased or sold and the date on which payment is made or received, in the value of the foreign currency relative to the U.S. dollar or other foreign currency.

For deliverable forward currency contracts, at maturity, the Fund may either, sell the portfolio security and make delivery of the foreign currency, or it may retain the security and terminate its contractual obligation to deliver the foreign currency by purchasing an "offsetting" contract obligating it to purchase, on the same maturity date, the same amount of the foreign currency. It is impossible to forecast with absolute precision the market value of portfolio securities at the expiration of the forward currency contract. Accordingly, it may be necessary for the Fund to purchase additional foreign currency on the spot market (and bear the expense of such purchase) if the market value of the security is less than the amount of foreign currency the Fund is obligated to deliver and if a decision is made to sell the security and make delivery of the foreign currency. Conversely, it may be necessary to sell on the spot market some of the foreign currency received upon the sale of the portfolio security if its market value exceeds the amount of foreign currency the Fund is obligated to deliver.

If the Fund retains the portfolio security and engages in offsetting transactions, the Fund will incur a gain or a loss (as described below) to the extent that there has been movement in forward contract prices. If the Fund engages in an offsetting transaction, it may subsequently enter into a new forward contract to sell the foreign currency. Should forward prices decline during the period between the Fund's entering into a forward currency contract for the sale of a foreign currency and the date it enters into an offsetting contract for the purchase of the foreign currency, the Fund will realize a gain to the extent the price of the currency it has agreed to sell exceeds the price of the currency it has agreed to purchase. Should forward prices increase, the Fund will suffer a loss to the extent the price of the currency it has agreed to purchase exceeds the price of the currency it has agreed to sell.

The Fund will cover its exposure to foreign currency transactions by segregating liquid assets in compliance with applicable requirements. The Fund will designate on its records cash or liquid assets equal to the amount of the Fund's assets that could be required to consummate a forward currency contract at the settlement date except to the extent the contracts are otherwise "covered." A forward currency contract to sell a foreign currency is "covered" if the Fund owns the currency (or securities denominated in the currency) underlying the contract, or holds a forward currency contract (or call option) permitting the Fund to buy the same currency at a price no higher than the Fund's price to sell the currency. A forward contract to buy a foreign currency is "covered" if the Fund holds a forward contract (or put option) permitting the Fund to sell the same currency at a price as high as or higher than the Fund's price to buy the currency. Although the Fund is not required to designate cash or liquid assets on its records with regard to "covered" forward currency contracts, the Fund will monitor its leverage exposure to such contracts daily.

Beginning on the date the Fund enters into a currency swap transaction, the Fund will designate on its records cash or liquid assets sufficient to make payment for each currency swap transaction on the next payment date. This amount will be equal to the net difference between the present value of the payments the Fund expects to receive and the present value of the payments the Fund expects to make. However, the Fund is not required to designate any assets in connection with currency swap transactions if the present value of the payments it expects to receive is greater than the present value of the payments it expects to make. Alternatively, the Fund may segregate an amount equal to the notional amount of the contract. For the purpose of determining the adequacy of the securities designated in connection with forward currency contracts and currency swap transactions, the value of the designated securities will be marked to market daily. If the market value of such securities declines or the designated securities become illiquid, additional cash or liquid assets will be designated daily so that the value of the designated securities will equal the amount of such commitments by the Fund.

To reduce the effect of currency fluctuations on the value of existing or anticipated holdings of portfolio securities, the Fund may also engage proxy hedging. Proxy hedging is often used when the currency to which the Fund's portfolio is exposed is difficult to hedge or to hedge against the dollar. Proxy hedging entails entering into a commitment or option to sell a currency whose changes in value are generally considered to be correlated to a currency or currencies in which some or all of the Fund's portfolio securities are or are expected to be denominated, in exchange for U.S. dollars. The amount of the commitment or option would not exceed the value of the Fund's securities denominated in correlated currencies. For example, if the Adviser considers that the Canadian dollar is correlated to the Australian dollar, the Fund holds securities denominated in Canadian dollars and the Adviser believes that the value of the Canadian dollar will decline against the U.S. dollar, the Adviser may enter into a commitment or option to sell Australian dollars and buy U.S. dollars. Currency hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency transactions can result in losses to the Fund if the currency being hedged fluctuates in value to a degree or in a direction that is not anticipated. Further, there is the risk that the perceived correlation between various currencies may not be present or may not be present during the particular time that the Fund is engaging in proxy hedging. If the Fund enters into a currency hedging transaction, beginning on the date that the hedging transaction is consummated, the Fund will designate cash or liquid assets on its records in an amount

sufficient to make payment for the foreign currency at the settlement date, to the extent that the Fund's obligations are not otherwise "covered" through ownership of the underlying currency.

Currency transactions are subject to risks different from those of other portfolio transactions. Because currency control is of great importance to the issuing governments and influences economic planning and policy, purchases and sales of currency and related instruments can be negatively affected by government exchange controls, blockages, and manipulations or exchange restrictions imposed by governments. These can result in losses to the Fund if it is unable to deliver or receive currency or funds in settlement of obligations and could also cause hedges it has entered into to be rendered useless, resulting in full currency exposure as well as incurring transaction costs. Buyers and sellers of currency futures are subject to the same risks that apply to the use of futures generally. Further, settlement of a currency futures contract for the purchase of most currencies must occur at a bank based in the issuing nation. Trading options on currency futures is relatively new, and the ability to establish and close positions on such options is subject to the maintenance of a liquid market which may not always be available. Currency exchange rates may fluctuate based on factors extrinsic to that country's economy.

Certain foreign currency forwards are now regulated by the CFTC and many are expected eventually to be subject to mandatory exchange trading and clearing. Central clearing is expected to decrease counterparty risk and increase liquidity, but will not make such transactions risk free and may require the Fund to incur increased expenses.

<u>Special Risk Considerations of Investing in China.</u> Investing in securities of Chinese issuers involves certain risks and considerations not typically associated with investing in securities of U.S. issuers, including, among others, more frequent trading suspensions and government interventions (including by nationalization of assets), currency exchange rate fluctuations or blockages, limits on the use of brokers and on foreign ownership, different financial reporting standards, higher dependence on exports and international trade, potential for increased trade tariffs, sanctions, embargoes and other trade limitations, custody risks, and potential adverse tax consequences. U.S. sanctions or other investment restrictions could preclude the Fund from investing in certain Chinese issuers or cause the Fund to sell investments at a disadvantageous time. Significant portions of the Chinese securities markets may become rapidly illiquid, as Chinese issuers have the ability to suspend the trading of their equity securities, and have shown a willingness to exercise that option in response to market volatility and other events.

The government of China provided new guidance to and placed restrictions on China-based companies raising capital offshore, including through associated offshore shell companies. These developments include government-led cybersecurity reviews of certain companies raising capital through offshore entities. In a number of sectors in China in which the Fund may invest, companies are not allowed to have foreign ownership and cannot directly list on exchanges outside of China. To raise money on such exchanges, many China-based operating companies are structured as Variable Interest Entities ("VIEs"). In such an arrangement, a China-based operating company often establishes an offshore shell company in another jurisdiction to issue stock to public shareholders. That shell company enters into service and other contracts with the China-based operating company, then issues shares on a foreign exchange, such as the NYSE. While the shell company has no equity ownership in the China-based operating company, for accounting purposes the shell company is able to consolidate the operating company into its financial statements. For an investor such as the Fund, this arrangement creates "exposure" to the China-based operating company, though only through a series of service contracts and other contracts.

Uncertainty about future actions by the government of China could significantly affect the operating company's financial performance and the enforceability of the contractual arrangements. The government of China could determine at any time and without notice that the underlying contractual arrangements on which control of the VIE is based violate Chinese law. In addition, if either the China-based company (or its officers, directors, or Chinese equity owners) breach those contracts with the U.S.-listed shell company, or Chinese law changes in a way that affects the enforceability of these arrangements, or those contracts are otherwise not enforceable under Chinese law, investors, such as the Fund, may suffer significant losses with little or no recourse available. Moreover, if the parties to these contracts do not meet their obligations as intended or there are effects on the enforceability of these arrangements from changes in Chinese law or practice, the U.S.-listed company may lose control over the China-based company, and investments in its securities may suffer significant economic losses. Additional risks, among others, could entail that a breach of the contractual agreements between the U.S.-listed company and the China-based VIE (or its officers, directors, or Chinese equity owners) will likely be subject to Chinese law and jurisdiction, and investments in the U.S.-listed company may be affected by conflicts of interest and duties between the legal owners of the China-based VIE and the stockholders of the U.S.-listed company.

**Derivatives**

The use of derivatives is a highly specialized activity that can involve investment techniques and risks different from, and in some respects greater than, those associated with investing in more traditional investments such as stocks and bonds. Derivatives may have a return that is tied to a formula based upon an interest rate, index or other reference measurement, which may differ from the return of a simple security of the same maturity. A formula may have a cap or other limitation on the rate of interest to be paid. Derivatives may have varying degrees of volatility at different times, or under different market conditions, and may perform in unanticipated ways. New regulation of derivatives may make them more costly, or may otherwise adversely affect their liquidity, value, or performance.

**Futures Transactions and Related Options.** The Fund may enter into futures contracts and options on futures contracts, as described below.

**Futures Contracts.** The Fund may purchase and sell futures contracts on securities and other instruments. Futures contracts are traded on organized exchanges regulated by the CFTC. Transactions on such exchanges are cleared through a clearing corporation, which guarantees the performance of the parties to each contract. The terms of futures contracts are set forth in the rules of the exchange on which the futures contracts are traded. The following provides a detailed description of the use of such futures contracts.

**Description of Interest Rate Futures Contracts.** Interest rate futures contracts are tied to interest-bearing instruments (such as U.S. Treasury notes) and may be used by the Fund to manage the risk that interest rates will move in an adverse direction. Selling an interest rate futures contract creates an obligation to deliver the specific type of financial instrument called for in the contract at a specific future time for a specified price. Purchasing a futures contract creates an obligation to take delivery of the specific type of financial instrument at a specific future time at a specific price for contracts that require physical delivery, or a net payment, for cash-settled contracts. The specific securities delivered or taken, respectively, at settlement date, would not be determined until or near that date.

Although interest rate futures contracts by their terms call for actual delivery or acceptance of securities, in most cases the contracts are closed out before the settlement date without making or taking delivery of securities. Closing out a futures contract is effected by the Fund's entering into an offsetting futures contract for the same aggregate amount of the specific type of financial instrument and the same delivery date. Depending on the current price at which the Fund enters the offsetting transaction, the Fund will realize or pay the difference between the prices of the two contracts and realize a gain or a loss.

The Fund may sell an interest rate futures contract to maintain the income advantage from continued holding of a long-term bond while endeavoring to avoid part or all of the loss in market value that would otherwise accompany a decline in long-term securities prices. However in the event of an increase in the market value of the portfolio securities, including the portfolio security being protected, the benefit of this increase would be reduced by the loss realized on closing out the futures contract sale. If interest rate levels did not change, the Fund might incur a loss (which might be reduced by an offsetting transaction prior to the settlement date). In each transaction, transaction expenses would also be incurred.

The Fund may purchase an interest rate futures contract when they are not fully invested in long-term bonds but wish to defer for a time the purchase of long-term bonds in light of the availability of advantageous interim investments, e.g., shorter term securities whose yields are greater than those available on long-term bonds. The Fund's basic motivation would be to maintain for a time the income advantage from investing in the short-term securities. The Fund would be endeavoring at the same time to eliminate the effect of all or part of an expected increase in market price of the long-term bonds that the Fund may purchase.

**Use of Interest Rate Futures Contracts.** Bond prices are established in both the cash market and the futures market. In the cash market, bonds are purchased and sold with payment for the full purchase price of the bond being made in cash, generally within five business days after the trade. In the futures market, a contract is made to purchase or sell a bond in the future for a set price on a certain future date. Historically, the prices for bonds established in the futures markets have tended to move generally in the aggregate in concert with the cash market prices and have maintained fairly predictable relationships. Accordingly, the Fund may use interest rate futures contracts as a defense, or hedge, against anticipated interest rate changes, selling of futures contracts to protect against expected increases in interest rates and purchasing futures contracts to offset the impact of interest rate declines.

**Margin Payments.** Unlike the purchase or sale of portfolio securities, no price is paid or received by the Fund upon the purchase or sale of a futures contract. Initially, the Fund will be required to deposit with the broker an amount of cash or cash equivalents, known as initial margin, based on the value of the contract. The initial margin is a performance bond or good faith deposit on the contract, which is returned to the Fund upon termination of the futures contract after all contractual obligations have been satisfied. On a daily basis, exchange rules require the calculation and transfer between the parties of that day's gain or loss on the futures contract, a process known as "marking to market" and payment of "variation margin". For example, when the Fund has purchased a futures contract and the price of the contract increases in response to a rise in the price of the underlying instruments, the Fund will be entitled to receive a variation margin payment equal to that increase in value. Conversely, where the Fund has purchased a futures contract and the price of the futures contract declines in response to a decrease in the underlying instrument, the Fund would be required to make a variation margin payment. At any time prior to expiration of a futures contract, the Adviser may close the position by taking an offsetting position, subject to the availability of a secondary market. A final determination of variation margin is then made and paid by the applicable party, and the Fund realizes a loss or gain on the transaction.

**Risks of Transactions in Futures Contracts.** There are several risks in connection with the use of futures by the Fund as hedging devices. One risk arises because of the imperfect correlation between movements in the price of futures and movements in the price of the instruments which are the subject of the hedge. The price of futures may move more than or less than the price of the instruments being hedged. If the price of futures moves less than the price of the instruments which are the subject of the hedge, the hedge will not be fully effective, but, if the price of the instruments being hedged has moved in an unfavorable direction, the Fund would be in a better position than if it had not hedged at all. If the price of the instruments being hedged has moved in a favorable direction, this advantage will be partially offset by the loss on the futures. If the price of the futures moves more than the price of the hedged instrument, the Fund will experience either a loss or gain on the futures contract that will not be completely offset by movements in the price of the instrument subject to the hedge. To compensate for the imperfect correlation of contrary movements in the price of instruments being hedged and movements in the price of futures contracts, the Fund may buy or sell futures contracts in a greater dollar amount than the dollar amount of instruments being hedged if the volatility over a particular time period of the prices of such instruments has been greater than the

volatility over such time period of the futures, or if otherwise deemed to be appropriate by the Adviser. Conversely, the Fund may buy or sell fewer futures contracts if the volatility over a particular time period of the prices of the instruments being hedged is less than the volatility over such time period of the futures contract being used, or if otherwise deemed to be appropriate by the Adviser. It is also possible that, when the Fund sells futures contracts to hedge its portfolio against a decline in the market, the market may advance and the value of the futures instruments held in the Fund may decline.

Where futures contracts are purchased to hedge against a possible increase in the price of securities before the Fund is able to invest its cash (or cash equivalents) in an orderly fashion, it is possible that the market may decline instead. If the Fund then concludes not to invest its cash at that time because of concern as to possible further market decline or for other reasons, the Fund will realize a loss on the futures contract that is not offset by a reduction in the price of the securities that were to be purchased and will have incurred transaction fees.

In addition, the price of futures contracts may not correlate perfectly with movement in the cash market due to certain market distortions. For example, an increase in volume in futures contracts due to offsetting transactions near the expiration of a contract could distort the normal relationship between the cash and futures markets. Also, the liquidity of the futures market depends on participants entering into offsetting transactions rather than making or taking delivery. To the extent participants decide to make or take delivery, liquidity in the futures market could be reduced, thus producing distortions. These factors can mean that correct forecast of general market trends or interest rate movements by the Adviser may still not result in a successful hedging transaction over a short time frame.

Positions in futures may be closed out only on an exchange or board of trade that provides a secondary market for such futures contracts. There is no assurance that a liquid secondary market on any exchange or board of trade will exist for any particular contract or at any particular time. When there is no liquid market, it may not be possible to close a futures contract, and in the event of adverse price movements, the Fund would continue to be required to make daily cash payments of variation margin and make or take delivery of the underlying investment upon expiration of the futures contract.

Further, it should be noted that the liquidity of a secondary market in a futures contract may be adversely affected by "daily price fluctuation limits" established by exchanges which limit the amount of fluctuation in a futures contract price during a single trading day. Once the daily limit has been reached in the contract, no trades may be entered into at a price beyond the limit, thus preventing the liquidation of open futures positions. The trading of futures contracts is also subject to the risk of trading halts, suspensions, exchange or clearing house equipment failures, government intervention, insolvency of a brokerage firm or clearing house or other disruptions of normal activity, which could at times make it difficult or impossible to liquidate existing positions or to recover equity.

Successful use of futures to hedge portfolio securities can protect against adverse market movements but also can reduce potential gain. For example, if a particular Fund has hedged against the possibility of a decline in the market adversely affecting securities held by it and securities prices increase instead, the Fund will lose part or all of the benefit to the increased value of its securities which it has hedged because it will have offsetting losses in its futures positions. In addition, in such situations, if the Fund has insufficient cash, it may have to sell securities to meet daily variation margin requirements. Such sales of securities may be, but will not necessarily be, at increased prices which reflect the rising market. The Fund may have to sell securities at a time when it may be disadvantageous to do so.

**Options on Futures Contracts.** The Fund may purchase and write options on the futures contracts described above. Buying a futures option gives the holder, in return for the premium paid, the right to buy from (call) or sell to (put) the writer of the option a futures contract at a specified price at a specified time or any time during the period of the option, depending on the terms of the options contract. Upon exercise, the writer of the option is obligated to pay the difference between the cash value of the futures contract and the exercise price. Like the buyer or seller of a futures contract, the holder, or writer, of an option has the right to terminate its position prior to the scheduled expiration of the option by selling or purchasing an option of the same series, at which time the person entering into the closing transaction will realize a gain or loss. The Fund will be required to deposit initial margin and variation margin with respect to put and call options on futures contracts written by it pursuant to requirements similar to those described above. Net option premiums received will be included as initial margin deposits.

Investments in futures options involve some of the same considerations that are involved in connection with investments in future contracts (for example, the existence of a liquid secondary market). In addition, the purchase or sale of an option also entails the risk that changes in the value of the underlying futures contract will not correspond to changes in the value of the option purchased. Depending on the pricing of the option compared to either the futures contract upon which it is based, or upon the price of the securities being hedged, an option may or may not be less risky than ownership of the futures contract or such securities. In general, the market prices of options can be expected to be more volatile than the market prices on underlying futures contracts. Compared to the purchase or sale of futures contracts, however, the purchase of call or put options on futures contracts may frequently involve less potential risk to the Fund because the maximum amount at risk is the premium paid for the options (plus transaction costs). The writing of an option on a futures contract involves risks similar to those risks relating to the sale of futures contracts.

**Options.** The Fund may purchase and sell put and call options, but will primarily write covered call options, purchase put options on securities held by the applicable Fund, or otherwise engage in options transactions that do not leverage the Fund. Such options may relate to particular securities and may or may not be listed on a national securities exchange and issued by the Options Clearing

Corporation. Options trading is a highly specialized activity that entails greater than ordinary investment risk. Options on particular securities may be more volatile than the underlying securities, and therefore, on a percentage basis, an investment in options may be subject to greater fluctuation than an investment in the underlying securities themselves. For risks associated with options on foreign securities, see "Foreign Currency Transactions" above.

A call option for a particular security gives the purchaser of the option the right to buy, and the writer of the option the obligation to sell, the underlying security at the stated exercise price at any time prior to the expiration of the option, regardless of the market price of the security. The premium paid to the writer is in consideration for undertaking the obligations under the option contract. A put option for a particular security gives the purchaser the right to sell, and the writer of the option the obligation to buy, the underlying security at the stated exercise price at any time prior to the expiration date of the option, regardless of the market price of the security.

The writer of an option that wishes to terminate its obligation may effect a "closing purchase transaction." This is accomplished by buying an option of the same series as the option previously written. The effect of the purchase is that the writer's position will be canceled by the clearing corporation. However, a writer may not effect a closing purchase transaction after being notified of the exercise of an option. Likewise, an investor who is the holder of an option may liquidate its position by effecting a "closing sale transaction." The cost of such a closing purchase transaction plus transaction costs may be greater than the premium received upon the original option, in which event the Fund will have incurred a loss in the transaction. There is no guarantee in any instance that either a closing purchase transaction or a closing sale transaction can be effected.

Effecting a closing sale transaction in the case of a written call option will permit the Fund to write another call option on the underlying security with either a different exercise price or expiration date or both. Also, effecting a closing sale transaction will permit the cash or proceeds from the concurrent sale of any securities subject to the option to be used for other Fund investments. If the Fund desires to sell a particular security from its portfolio on which it has written a call option, it will effect a closing sale transaction prior to or concurrent with the sale of the security.

The Fund may write options in connection with buy-and-write transactions; that is, the Fund may purchase a security and then write a call option against that security. The Fund will determine the exercise price of the call based upon the expected price movement of the underlying security. The exercise price of a call option may be below ("in-the-money"), equal to ("at-the-money") or above ("out-of- the-money") the current value of the underlying security at the time the option is written. Buy-and-write transactions using in-the-money call options may be used when it is expected that the price of the underlying security will remain flat or decline moderately during the option period. Buy-and-write transactions using out-of-the-money call options may be used when it is expected that the premiums received from writing the call option plus the appreciation in the market price of the underlying security up to the exercise price will be greater than the appreciation in the price of the underlying security alone. If the call options are exercised in such transactions, the maximum gain to the relevant Fund will be the premium received by it for writing the option, adjusted upwards or downwards by the difference between the Fund's purchase price of the security and the exercise price. If the options are not exercised and the price of the underlying security declines, the amount of such decline will be offset in part, or entirely, by the premium received.

In the case of writing a call option on a security, the option is "covered" if the Fund owns the security underlying the call or has an absolute and immediate right to acquire that security without additional cash consideration, such as conversion or exchange of other securities held by it, or, if additional cash consideration is required, the Fund has designated or "segregated" on its records cash or liquid assets equal in value to such amount. A call option is covered if the Fund holds a call on the same security or index as the call written where the exercise price of the call held is (1) equal to or less than the exercise price of the call written, or (2) greater than the exercise price of the call written provided the Fund designates on its records cash or liquid assets equal to the difference. The Fund will limit its investment in uncovered put or call options purchased or written, measured by the exercise price in the case of a put or market value in the case of a call, by the Fund to 33 1/3% of the Fund's total assets. The Fund will write put options only if they are covered by (1) designating on its records cash or liquid assets in an amount not less than the exercise price of the option at all times during the option period or (2) selling short the underlying security at a price at least equal to the strike price or purchasing a put option with a strike price at least equal to the strike price of the put option sold.

The writing of covered put options is similar in terms of risk/return characteristics to buy-and-write transactions. If the market price of the underlying security rises or otherwise is above the exercise price, the put option will expire worthless and the relevant Fund's gain will be limited to the premium received. If the market price of the underlying security declines or otherwise is below the exercise price, the Fund may elect to close the position or take delivery of the security at the exercise price and the Fund's return will be the premium received from the put option minus the amount by which the market price of the security is below the exercise price.

The Fund may purchase put options to hedge against a decline in the value of their portfolios. By using put options in this way, the Fund will reduce any profit it might otherwise have realized in the underlying security by the amount of the premium paid for the put option and by transaction costs. The Fund may purchase call options to hedge against an increase in the price of securities that they anticipate purchasing in the future. The premium paid for the call option plus any transaction costs will reduce the benefit, if any, realized by the Fund upon exercise of the option, and, unless the price of the underlying security rises sufficiently, the option may expire worthless to the Fund.

When the Fund purchases an option, the premium paid by it is recorded as an asset of the Fund. When the Fund writes an option, an amount equal to the net premium (the premium less the commission) received by the Fund is included in the liability section of the Fund's statement of assets and liabilities as a deferred credit. The amount of this asset or deferred credit will be subsequently marked to market to reflect the current value of the option purchased or written. The current value of the traded option is the last sale price or, in the absence of a sale, the average of the closing bid and asked prices. If an option purchased by the Fund expires unexercised the Fund realizes a loss equal to the premium paid. If the Fund enters into a closing sale transaction on an option purchased by it, the Fund will realize a gain if the premium received by the Fund on the closing transaction is more than the premium paid to purchase the option, or a loss if it is less. If an option written by the Fund expires on the stipulated expiration date or if the Fund enters into a closing purchase transaction, it will realize a gain (or loss if the cost of a closing purchase transaction exceeds the net premium received when the option is sold) and the deferred credit related to such option will be eliminated. If an option written by the Fund is exercised, the proceeds of the sale will be increased by the net premium originally received and the Fund will realize a gain or loss.

There are several risks associated with transactions in options on securities and indices. For example, there are significant differences between the securities and options markets that could result in an imperfect correlation between these markets, causing a given transaction not to achieve its objectives. An option writer that is unable to effect a closing purchase transaction will not be able to sell the underlying security (in the case of a covered call option) or liquidate the segregated account (in the case of a secured put option) until the option expires or the optioned security is delivered upon exercise with the result that the writer in such circumstances will be subject to the risk of market decline or appreciation in the security during such period.

There is no assurance that the Fund will be able to close an unlisted option position. Furthermore, unlisted options are not subject to the protections afforded purchasers of listed options by the Options Clearing Corporation, which performs the obligations of its members who fail to do so in connection with the purchase or sale of options.

In addition, a liquid secondary market for particular options, whether traded over-the-counter or on a national securities exchange (an "Exchange"), may be absent for reasons which include the following: there may be insufficient trading interest in certain options; restrictions may be imposed by an Exchange on opening transactions or closing transactions or both; trading halts, suspensions or other restrictions may be imposed with respect to particular classes or series of options or underlying securities; unusual or unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an Exchange or the Options Clearing Corporation may not at all times be adequate to handle current trading volume; or one or more Exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the trading of options (or a particular class or series of options), in which event the secondary market on that Exchange (or in that class or series of options) would cease to exist, although outstanding options that had been issued by the Options Clearing Corporation as a result of trades on that Exchange would continue to be exercisable in accordance with their terms.

**Stock Index Futures, Options on Stock and Bond Indices and Options on Stock and Bond Index Futures Contracts. The Fund may enter into stock index futures contracts, and purchase and sell options on stock and bond indices and options on stock and bond index futures contracts as described in the applicable Prospectus. The Fund may use such options on futures contracts in connection with its hedging strategies in lieu of purchasing and selling the underlying futures or purchasing and writing options directly on the underlying securities or indices. For example, the Fund may purchase put options or write call options on stock and bond index futures, rather than selling futures contracts, in anticipation of a decline in general stock or bond market prices or purchase call options or write put options on stock or bond index futures, rather than purchasing such futures, to hedge against possible increases in the price of securities which such Fund intends to purchase. Index futures and options are subject to the same types of risks as are described under "Futures Transactions and Related Options" above.**

A stock index assigns relative values to the stocks included in the index and the index fluctuates with changes in the market values of the stocks included. Some stock index futures contracts are based on broad market indices, such as the Standard & Poor's® 500 or the New York Stock Exchange Composite Index. In contrast, certain exchanges offer futures contracts on narrower market indices, such as the Standard & Poor's® 100 or indices based on an industry or market segment, such as oil and gas stocks. A stock index futures contract is an agreement in which one party agrees to deliver to the other an amount of cash equal to a specific dollar amount times the difference between the value of a specific stock index at the close of the last trading day of the contract and the price at which the agreement is made. No physical delivery of securities is made.

Options on stock and bond indices are similar to options on specific securities, described above, except that, rather than the right to take or make delivery of the specific security at a specific price, an option on a stock or bond index gives the holder the right to receive, upon exercise of the option, an amount of cash if the closing level of that stock or bond index is greater than, in the case of a call option, or less than, in the case of a put option, the exercise price of the option. This amount of cash is equal to such difference between the closing price of the index and the exercise price of the option expressed in dollars times a specified multiple. The writer of the option is obligated, in return for the premium received, to make delivery of this amount. Unlike options on specific securities, all settlements of options on stock or bond indices are in cash, and gain or loss depends on general movements in the stocks included in the index rather than price movements in particular stocks.

The Fund will sell index futures contracts in order to offset a decrease in market value of its portfolio securities that might otherwise result from a market decline. The Fund will purchase index futures contracts in anticipation of purchases of securities. In a substantial

majority of these transactions, the Fund will purchase such securities upon termination of the long futures position, but a long futures position may be terminated without a corresponding purchase of securities.

In addition, the Fund may utilize index futures contracts in anticipation of changes in the composition of its portfolio holdings. For example, in the event that the Fund expects to narrow the range of industry groups represented in its holdings it may, prior to making purchases of the actual securities, establish a long futures position based on a more restricted index, such as an index comprised of securities of a particular industry group. The Fund may also sell futures contracts in connection with this strategy, in order to protect against the possibility that the value of the securities to be sold as part of the restructuring of the portfolio will decline prior to the time of sale.

For example, if the Adviser expects general stock or bond market prices to rise, it might enter into a long stock index futures contract, or purchase a call option on that index, as a hedge against an increase in prices of particular securities it ultimately wants to buy. If in fact the index does rise, the price of the particular securities intended to be purchased may also increase, but that increase would be offset in part by the increase in the value of the relevant Fund's futures contract or index option resulting from the increase in the index. If, on the other hand, the Adviser expects general stock or bond market prices to decline, it might take a short position in a futures contract, or purchase a put option, on the index. If that index does in fact decline, the value of some or all of the securities in the relevant Fund's portfolio may also be expected to decline, but that decrease would be offset in part by the increase in the value of the Fund's position in such futures contract or put option.

**Other Investments and Investment Practices**

**Borrowing.** The Fund is authorized to borrow money as permitted under the 1940 Act, and as interpreted or modified by regulatory authority having jurisdiction from time to time. Borrowing may be unsecured. The Fund does not intend to borrow money for leveraging purposes.

The 1940 Act requires a mutual fund to maintain continuous asset coverage of 300% of the amount borrowed. If the 300% asset coverage declines as a result of market fluctuations or other reasons, the Fund may be required to sell some of its portfolio holdings within three days to reduce the debt and restore the 300% asset coverage, even though it may be disadvantageous from an investment standpoint to sell securities at that time. Borrowed funds are subject to interest costs that may or may not be offset by amounts earned on the borrowed funds. The Fund may also be required to maintain minimum average balances in connection with such borrowing or to pay a commitment or other fees to maintain a line of credit; either of these requirements would increase the cost of borrowing over the stated interest rate. The Fund may, in connection with permissible borrowings, transfer, as collateral, securities owned by the Fund. However, borrowing may be unsecured.

**Convertible Securities.** The Fund may invest in convertible securities, which include bonds or preferred stocks that may be converted (exchanged) into the common stock of the issuing company within a specified time period for a specified number of shares. Convertible securities offer the Fund a way to participate in the capital appreciation of the common stock into which the securities are convertible, while earning higher current income than is available from the common stock. However, convertible securities generally have less potential for gain or loss than common stocks. Furthermore, the yield provided by convertible securities is generally lower than comparable non-convertible securities. In addition, convertible securities may be sensitive to changes in interest rates. Therefore, the value of a convertible security may rise as interest rates fall and may decrease as interest rates rise.

**Illiquid Investments.** The Fund may invest up to 15% of the value of its net assets (determined at time of acquisition) in investments that are illiquid. If, after the time of acquisition, events cause this limit to be exceeded, the Fund will take steps to reduce the aggregate amount of illiquid investments within a time frame deemed to be in the best interest of the Fund, in addition to complying with other regulatory requirements.

Rule 22e-4 under the 1940 Act (the "Liquidity Rule") requires the Fund to establish a liquidity risk management program. The Liquidity Rule defines an "illiquid investment" as an investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the security. Such investments include, but are not limited to, time deposits and repurchase agreements with maturities longer than seven days. Investments that may be resold under the Liquidity Rule, securities offered pursuant to Section 4(a)(2) of the Securities Act, or investments otherwise subject to restrictions or limitations on resale under the Securities Act shall not be deemed illiquid solely by reason of being unregistered. Victory Capital, under oversight of the Board, determines whether a particular investment is deemed to be liquid based on the trading markets for the specific security and other factors.

It is possible that unregistered securities purchased by the Fund in reliance upon Rule 144A could have the effect of increasing the level of the Fund's illiquidity to the extent that qualified institutional buyers become, for a period, uninterested in purchasing these securities.

Unexpected episodes of illiquidity, including due to market or political factors, instrument, or issuer-specific factors and/or unanticipated outflows, may limit the Fund's ability to pay redemption proceeds within the allowable time period. To meet redemption requests during periods of illiquidity, the Fund may be forced to sell an investment at an unfavorable time and/or under unfavorable conditions.

**Initial Public Offerings ("IPOs").** The Fund may invest in securities that are made available in IPOs. IPO securities may be volatile, and the Fund cannot predict whether its investments in IPOs will be successful. Securities issued through an initial public offering (IPO)

can experience an immediate drop in value if the demand for the securities does not continue to support the offering price. Information about the issuers of IPO securities is also difficult to acquire since they are new to the market and may not have lengthy operating histories. Any short-term trading in connection with IPO investments could produce higher trading costs and adverse tax consequences. As the Fund grows in size, the positive effect of any IPO investments on the Fund may decrease.

**Money Market Instruments.** The Fund may invest in money market instruments, which are high-quality, short-term instruments, including commercial paper, bankers' acceptances, and negotiable certificates of deposit of banks or savings and loan associations, short- term corporate obligations, and short-term U.S. government securities.

**Master Limited Partnerships ("MLPs").** The Fund may invest in master limited partnerships in which ownership interests are publicly traded. The majority of MLPs operate in the energy sector, particularly in energy infrastructure industries such as pipelines, which provide stable income streams. Fees that pipelines are able to charge are highly regulated by the U.S. government; therefore, these types of MLPs are subject to the risk that regulatory action will decrease fee levels.

Generally, an MLP is operated under the supervision of one or more managing general partners. Limited partners (including the Fund that invests in an MLP) are not involved in the day-to-day management of the partnership. They are allocated income and capital gains associated with the partnership project in accordance with the terms established in the partnership agreement. Limited partners do not have voting rights in an MLP. The risks of investing in an MLP are generally those inherent in investing in a partnership as opposed to a corporation. For example, state law governing partnerships is often less restrictive than state law governing corporations. Accordingly, there may be fewer protections afforded investors in an MLP than investors in a corporation.

Since MLPs are structured as partnerships they generally do not pay corporate income taxes. Taxes are only paid when distributions are received, thus avoiding the double taxation faced by investors in corporations. MLPs face stringent provisions including the requirement to pay minimum quarterly distributions to limited partners, by contract. Thus, the distributions of MLPs tend to be predictable and provide current income to investors. As with high-yielding equities, MLPs are often more appealing to investors at times of low interest rates, as this results in higher yields for MLPs relative to bonds and money market instruments. Increasing interest rates would result in lower relative yields versus other alternative assets.

MLPs generally enjoy the same tax treatment as limited liability companies ("LLCs") taxed as partnerships; that is, they are non-taxable entities with a tax shield on distributions, thus avoiding the double taxation of corporate profits. If MLPs were no longer able to pass through taxes to limited partners a large benefit of investing in MLPs would be removed.

The general partner in an MLP has what are called Incentive Distribution Rights ("IDRs"). IDRs are terms defined in the MLP partnership, which allow for the general partner to claim a higher proportion of incremental amounts of the distribution payments as these payments grow over specified levels. This is designed to provide general partners with a strong incentive to increase distributions, further enhancing the appeal of MLPs based on large, growing distributions. On the other hand, it raises the cost of equity for the MLP and can dilute the ownership claim of limited partners.

The profitability of MLPs could be adversely affected by changes in the regulatory environment. Most MLPs' assets are heavily regulated by federal and state governments in diverse matters, such as the way in which certain MLP assets are constructed, maintained and operated and the prices MLPs may charge for their services. Such regulation can change over time in scope and intensity. For example, a particular by-product of an MLP process may be declared hazardous by a regulatory agency and unexpectedly increase production costs. Moreover, many state and federal environmental laws provide for civil as well as regulatory remediation, thus adding to the potential exposure an MLP may face. Extreme weather patterns could result in significant volatility in the supply of energy and power. This volatility may create fluctuations in commodity prices and earnings of companies in the energy infrastructure industry and could adversely impact the value of the interests in an MLP.

**Other Investment Companies.** The Fund may invest in securities issued by other investment companies, including exchange-traded funds ("ETFs"). As a shareholder of another investment company, the Fund will bear its pro rata portion of the other investment company's expenses, including investment advisory and administration fees. These expenses would be in addition to the expenses the Fund bears directly in connection with its own operations. Except as described in the following paragraphs, the Fund currently intends to limit its investments in securities issued by other investment companies so that, as determined immediately after a purchase of such securities is made: (i) not more than 5% of the value of the Fund's total assets will be invested in the securities of any one investment company; (ii) not more than 10% of the value of its total assets will be invested in the aggregate in securities of investment companies as a group; and (iii) not more than 3% of the outstanding voting stock of any one investment company will be owned by the Fund.

These limitations do not apply to investments in investment companies through a master-feeder type arrangement or to investments made in reliance on an exemption granted by the SEC. In addition, to the extent allowed by law or regulation, the Fund may invest its assets in securities of investment companies that are money market funds, including those that may be affiliated with the Adviser, in excess of the limits discussed above provided that either: the acquiring Fund pays no "sales charge" or "service fee" (as each of those terms is defined in the FINRA Conduct Rules); or (2) the Adviser waives its advisory fee in an amount necessary to offset any such sales charge or service fee.

For purposes of this investment restriction, a "money market fund" is either: (1) an open-end investment company registered under the 1940 Act and regulated as a money market fund in accordance with Rule 2a-7 under the 1940 Act; or (2) a company that is exempt from registration as in investment company under Sections 3(c)(1) or 3(c)(7) of the 1940 Act and that: (a) limits its investments to those permitted under Rule 2a-7 under the 1940 Act; and (b) undertakes to comply with all the other requirements of Rule 2a-7, except that, if the company has no board of directors, the company's investment adviser performs the duties of the board of directors.

The Fund may invest in ETFs that seek to track the composition and/or performance of specific indexes or portions of specific indexes. ETFs are traded on a securities exchange. The market prices of index-based investments will fluctuate in accordance with both changes in the underlying portfolio securities of the investment company and also due to supply and demand of the investment company's shares on the exchange upon which their shares are traded. Index-based investments may not replicate or otherwise match the composition or performance of their specified index due to transaction costs, among other things.

Pursuant to an order issued by the SEC exempting certain ETFs from Section 12(d)(1) of the 1940 Act (SEC Order and Rule 12d1-4 under the 1940 Act), in addition to procedures approved by the Board, the Fund may invest in certain ETFs in excess of the 5% and 10% limits described above, provided it complies with relevant regulatory conditions, enters into a participation agreement and any other applicable investment limitations.

**Rights and Warrants.** The Fund may purchase common stock rights and warrants separately or may receive them as part of a unit or attached to securities purchased. Warrants are securities that give the holder the right, but not the obligation, to purchase equity issues of the company issuing the warrants, or a related company, at a fixed price either on a date certain or during a set time period. Subscription rights normally have a short life span to expiration.

At the time of issuance, the cost of a warrant is substantially less than the cost of the underlying security itself, and price movements in the underlying security are generally magnified in the price movements of the warrant. This effect enables the investor to gain exposure to the underlying security with a relatively low capital investment but increases an investor's risk in the event of a decline in the value of the underlying security and can result in a complete loss of the amount invested in the warrant. In addition, the price of a warrant tends to be more volatile than, and may not correlate exactly to, the price of the underlying security. If the market price of the underlying security is below the exercise price of the warrant on its expiration date, the warrant will generally expire without value.

The equity security underlying a warrant is authorized at the time the warrant is issued or is issued together with the warrant. Investing in warrants can provide a greater potential for profit or loss than an equivalent investment in the underlying security, and, thus, can be a speculative investment. The value of a warrant may decline because of a decline in the value of the underlying security, the passage of time, changes in interest rates or in the dividend or other policies of the company whose equity underlies the warrant or a change in the perception as to the future price of the underlying security, or any combination thereof. Warrants generally pay no dividends and confer no voting or other rights other than to purchase the underlying security.

**Real Estate-Related Securities.** The Fund may invest in real estate investment trusts ("REITs"). The Fund will not invest in real estate directly. REITs pool investors' funds for investment primarily in income producing real estate or real estate loans or interests. A REIT is generally not subject to U.S. federal income tax on income distributed to shareholders if it complies with several requirements relating to its organization, ownership, assets, and income and a requirement that it distribute to its shareholders at least 90% of its taxable income (other than net capital gains) for each taxable year.

REITs generally can be classified as equity REITs, mortgage REITs and hybrid REITs. Equity REITs, which invest the majority of their assets directly in real property, derive their income primarily from rents. Equity REITs can also realize capital gains by selling properties that have appreciated in value. Mortgage REITs, which invest the majority of their assets in real estate mortgages, derive their income primarily from interest payments. Hybrid REITs combine the characteristics of both equity REITs and mortgage REITs.

REITs may be subject to risks similar to those associated with the direct ownership of real estate (in addition to securities markets risks). These include declines in the value of real estate, risks related to general and local economic conditions, dependency on management skill, heavy cash flow dependency, possible lack of availability of mortgage funds, overbuilding, extended vacancies of properties, increased competition, increases in property taxes and operating expenses, changes in zoning laws, losses due to costs resulting from the clean-up of environmental problems, liability to third parties for damages resulting from environmental problems, casualty or condemnation losses, limitations on rents, changes in neighborhood values, the appeal of properties to tenants and changes in interest rates. In addition to these risks, equity REITs may be affected by changes in the value of the underlying property owned by the trusts, while mortgage REITs may be affected by the quality of any credit extended. Further, equity and mortgage REITs are dependent upon management skills and generally may not be diversified. Equity and mortgage REITs are also subject to heavy cash flow dependency, defaults by borrowers and self-liquidation. In addition, equity and mortgage REITs could possibly fail to qualify for the beneficial tax treatment available to REITs under the Code, as amended, or to maintain their exemptions from registration under the 1940 Act. The above factors may also adversely affect a borrower's or a lessee's ability to meet its obligations to the REIT. In the event of a default by a borrower or lessee, the REIT may experience delays in enforcing its rights as a mortgagee or lessor and may incur substantial costs associated with protecting investments. In addition, as REITs generally pay a higher rate of dividends (on a pre-tax basis) than operating companies, to the extent application of the Fund's investment strategy results in the Fund investing in REIT shares, the percentage of

the Fund' s dividend income received from REIT shares will likely exceed the percentage of the Fund' s portfolio which is comprised of REIT shares.

**Short Sales.** The Fund may engage in short sales, including short sales against the box. Short sales are transactions in which the Fund sells a security it does not own in anticipation of a decline in the market value of that security. A short sale against the box is a short sale where at the time of the sale, the Fund owns or has the right to obtain securities equivalent in kind and amounts. To complete a short sale transaction, the Fund must borrow the security to make delivery to the buyer. The Fund then is obligated to replace the security borrowed by purchasing it at the market price at the time of replacement. The price at such time may be more or less than the price at which the security was sold by the Fund. Until the security is replaced, the Fund is required to pay to the lender amounts equal to any interest or dividends which accrue during the period of the loan. To borrow the security, the Fund also may be required to pay a premium, which would increase the cost of the security sold. There will also be other costs associated with short sales.

The Fund will incur a loss as a result of the short sale if the price of the security increases between the date of the short sale and the date on which the Fund replaces the borrowed security. The Fund will realize a gain if the security declines in price between those dates. This result is the opposite of what one would expect from a cash purchase of a long position in a security. The amount of any gain will be decreased, and the amount of any loss increased, by the amount of any premium or amounts in lieu of interest or dividends the Fund may be required to pay in connection with a short sale, and will be also decreased by any transaction or other costs.

Until the Fund replaces a borrowed security in connection with a short sale, the Fund will (a) designate on its records as collateral cash or liquid assets at such a level that the designated assets plus any amount deposited with the broker as collateral will equal the current value of the security sold short or (b) otherwise cover its short position in accordance with applicable law. The amount designated on the Fund's records will be marked to market daily and at no time will the sum of the amount so designated and the amount deposited with the broker as collateral be less than the market value of the securities at the time they sold short. This may limit the Fund's investment flexibility, as well as its ability to meet redemption requests or other current obligations.

There is no guarantee that the Fund will be able to close out a short position at any particular time or at an acceptable price. During the time that the Fund is short a security, it is subject to the risk that the lender of the security will terminate the loan at a time when the Fund is unable to borrow the same security from another lender. If that occurs, the Fund may be "bought in" at the price required to purchase the security needed to close out the short position, which may be a disadvantageous price.

Short sales also involve other costs. The Fund must normally repay to the lender an amount equal to any dividends or interest that accrues while the loan is outstanding. In addition, to borrow the security, the Fund may be required to pay a premium. The Fund also will incur transaction costs in effecting short sales. The amount of any ultimate gain for the Fund resulting from a short sale will be decreased, and the amount of any ultimate loss will be increased, by the amount of premiums, dividends, interest or expenses the Fund may be required to pay in connection with the short sale.

In addition to the short sales discussed above, the Fund may make short sales "against the box," a transaction in which the Fund enters into a short sale of a security that the Fund owns or a security equivalent in kind and amount to the security sold short that the Fund has the right to obtain at no additional cost. The Fund does not immediately deliver the securities sold and is said to have a short position in those securities until delivery occurs. If the Fund effects a short sale of securities against the box at a time when it has an unrealized gain on the securities, it may be required to recognize that gain as if it had actually sold the securities (as a "constructive sale") on the date it effects the short sale. However, such constructive sale treatment may not apply if the Fund closes out the short sale with securities other than the appreciated securities held at the time of the short sale and if certain other conditions are satisfied.

**Temporary Defensive Measures.** The Fund typically minimizes its cash holdings in an effort to provide investors with full market exposure to the particular asset class or classes represented by the Fund. This approach, which avoids trying to time broad market movements, allows investors to make their own asset allocation decisions. From time to time, however, the Fund temporarily may, but is not required to, invest all or any portion of its assets in short-term obligations, such as U.S. government obligations, high-quality money market instruments and exchange-traded funds, in order to meet redemption requests or as a defensive measure in response to adverse market or economic conditions.

**Interfund Borrowing and Lending.** The Fund has obtained an exemptive order from the SEC allowing them to lend money to, and borrow money from, each other pursuant to a master interfund lending agreement (the "Interfund Lending Program"). Under the Interfund Lending Program, the Fund may lend or borrow money for temporary purposes directly to or from one another (an "Interfund Loan"), subject to meeting the conditions of the SEC exemptive order. All Interfund Loans would consist only of uninvested cash reserves that the lending Fund otherwise would invest in short-term repurchase agreements or other short-term instruments.

If the Fund has outstanding bank borrowings, any Interfund Loans to the Fund would: (a) be at an interest rate equal to or lower than that of any outstanding bank borrowing, (b) be secured at least on an equal priority basis with at least an equivalent percentage of collateral to loan value as any outstanding bank loan that requires collateral, (c) have a maturity no longer than any outstanding bank loan (and in any event not over seven days), and (d) provide that, if an event of default occurs under any agreement evidencing an outstanding bank loan to the Fund, that event of default by the Fund will automatically (without need for action or notice by the lending Fund) constitute an immediate event of default under the master interfund lending agreement, entitling the lending Fund to call the

Interfund Loan immediately (and exercise all rights with respect to any collateral), and that such call will be made if the lending bank exercises its right to call its loan under its agreement with the borrowing Fund.

The Fund may borrow on an unsecured basis through the Interfund Lending Program only if the relevant borrowing Fund's outstanding borrowings from all sources immediately after the interfund borrowing total 10% or less of its total assets, provided that if the borrowing Fund has a secured loan outstanding from any other lender, including but not limited to another Fund, the lending Fund's Interfund Loan will be secured on at least an equal priority basis with at least an equivalent percentage of collateral to loan value as any outstanding loan that requires collateral. If a borrowing Fund's total outstanding borrowings immediately after an Interfund Loan would be greater than 10% of its total assets, the Fund may borrow through the Interfund Lending Program only on a secured basis. The Fund may not borrow under the Interfund Lending Program or from any other source if its total outstanding borrowings immediately after the borrowing would be more than 33 1/3% of its total assets or any lower threshold provided for by the Fund's fundamental restriction or nonfundamental policy.

The Fund may not lend to another Fund through the Interfund Lending Program if the loan would cause the lending Fund's aggregate outstanding loans through the Interfund Lending Program to exceed 15% of its current net assets at the time of the loan. The Fund's Interfund Loans to any one Fund shall not exceed 5% of the lending Fund's net assets. The duration of Interfund Loans will be limited to the time required to receive payment for securities sold, but in no event more than seven days, and for purposes of this condition, loans effected within seven days of each other will be treated as separate loan transactions. Each Interfund Loan may be called on one business day's notice by a lending Fund and may be repaid on any day by a borrowing Fund. The limitations detailed above and the other conditions of the SEC exemptive order permitting interfund borrowing and lending are designed to minimize the risks associated with interfund borrowing and lending for both a lending Fund and a borrowing Fund. However, no borrowing or lending activity is without risk. When the Fund borrows money from another Fund, there is a risk that the Interfund Loan could be called on one business day's notice or not renewed, in which case the Fund may have to borrow from a bank at higher rates if an Interfund Loan is not available from another Fund. Interfund Loans are subject to the risk that a borrowing Fund could be unable to repay the loan when due, and a delay in repayment to a lending Fund or from a borrowing Fund could result in a lost investment opportunity or additional costs. No Fund may borrow more than the amount permitted by its investment limitations. The Interfund Lending Program is subject to the oversight and periodic review of the Board.

**Lending of Portfolio Securities.** The Fund may, from time to time, lend securities from their portfolios to broker-dealers, banks, financial institutions, and institutional borrowers of securities and receive collateral in the form of cash or U.S. government obligations. Under the Fund's current practices (which are subject to change), the Fund must receive initial collateral at least equal to the maintenance requirements (e.g., 102% for U.S. equity securities and 105% for non-U.S. securities). This collateral must be valued daily and should the market value of the loaned securities increase, the borrower must furnish additional collateral to the Fund sufficient to maintain the value of the collateral equal to at least 100% of the value of the loaned securities. The lending agent receives a pre-negotiated percentage of the net earnings on the investment of the collateral. The Fund will not lend portfolio securities to: (a) any "affiliated person" (as that term is defined in the 1940 Act) of any Fund; (b) any affiliated person of the Adviser; or (c) any affiliated person of such an affiliated person. During the time portfolio securities are on loan, the borrower will pay the Fund any dividends or interest paid on such securities plus any fee negotiated between the parties to the lending agreement. Loans will be subject to termination by the Fund or the borrower at any time. While the Fund will not have the right to vote securities on loan, they intend to terminate loans and regain the right to vote if that is considered important with respect to the investment. The Fund will enter into loan arrangements only with broker-dealers, banks, or other institutions that either the Adviser or the lending agent has determined are creditworthy under guidelines established by the Board. Although these loans are fully collateralized, there are risks associated with securities lending. The Fund's performance could be hurt if a borrower defaults or becomes insolvent, or if the Fund wishes to sell a security before its return can be arranged. The return on invested cash collateral will result in gains and losses for the Fund. The Fund will limit its securities lending to 33-1/3% of its total assets.

**Additional Risk Factors and Special Considerations**

**New or Smaller Funds.** A Fund with limited operating history and/or small asset base may involve additional risk. For example, there can be no assurance that a new or smaller Fund will grow to or maintain an economically viable size. Should the Fund not grow to or maintain an economically viable size, the Board may determine to liquidate the Fund. Although the interests of shareholders in the Fund are the principal concern of the Board, in the event the Board determines to liquidate the Fund, the timing of any possible liquidation might not be favorable to certain individual shareholders.

**Impact of Activity by Other Shareholders.** The Fund, like all mutual funds, pools the investments of many investors. Actions by one shareholder or multiple shareholders may have an impact on the Fund and, therefore, indirectly on other shareholders. For example, significant levels of new investments in the Fund by shareholders may cause the Fund to have more cash than would otherwise be the case, which may have a positive or negative impact on Fund performance. Similarly, redemption activity might cause the Fund to sell portfolio securities, which may increase transaction costs and accelerate the realization of income and cause the Fund to make taxable distributions to shareholders earlier than the Fund otherwise would have, or cause it to borrow funds on a short-term basis to cover redemptions, which would cause the Fund to incur costs that, in effect, would be borne by all shareholders, not just the redeeming shareholders. In addition, under certain circumstances, non-redeeming shareholders may be treated as receiving a disproportionately

large taxable distribution during or with respect to a year in which there are large redemptions. To the extent a larger shareholder (including, for example, a fund-of-funds) invests in the Fund or the markets are highly volatile, the Fund may experience large inflows or outflows of cash from time to time. This activity could magnify these adverse effects on the Fund.

**Merger, Reorganization, or Liquidation of Funds.** The Board may determine to merge or reorganize the Fund or a class of shares, or to close and liquidate the Fund or a class of shares at any time, which may have adverse consequences for shareholders. In the event of the liquidation of the Fund, shareholders will receive a liquidating distribution in cash or in-kind equal to their proportionate interest in the Fund. Although the interests of shareholders in the Fund are the principal concern of the Board, in the event the Board determines to liquidate the Fund or a class of shares, the timing of any possible liquidation might not be favorable to certain individual shareholders. A liquidating distribution may be a taxable event to certain shareholders, resulting in a taxable gain or loss for tax purposes, depending upon such shareholder's basis in his or her shares of the Fund. A shareholder of a liquidating Fund or a class of shares will not be entitled to any refund or reimbursement of expenses borne, directly or indirectly, by the shareholder (such as sales loads, account fees, or fund expenses), and a shareholder may receive an amount in liquidation less than the shareholder's original investment.

**Recent Market Conditions and Events**

There have been multiple periods in recent decades of high levels of stress and volatility in financial markets. Periods of market volatility, restrictive credit conditions, lack of confidence in key market participants, and broadly negative sentiment, sometimes limited to a particular sector or a geography, continue to recur. Political changes, trade policies and trade disputes (including sanctions and tariffs), tax and budget policies, debt disputes, geopolitical developments, environmental and public health events, and central bank actions (including withdrawals, or "tapering," of market support and changes in interest rate targets) have all at times represented sources of stress and instability in world economies and markets. For example, Russia's military campaign in Ukraine resulted in broad-based sanctions by the U.S. and other countries and rapid price movements in sectors (such as energy) where Russian companies are important market participants, with related impacts both globally and regionally. Also for example, the COVID-19 pandemic and related quarantines and restrictions resulted in high unemployment, disruptions to supply chains and customer activity, and general concern and uncertainty, with corresponding impacts on financial markets worldwide. COVID-19 remains a risk with the potential that new variants could lead to increased government restrictions and consumer caution. More recently, a number of major economies, including the United States, adjusted to reduced levels of market and monetary support following periods of fiscal and monetary interventions. Recent periods of rising inflation and increases in interest rate targets by central banks have generated significant market stress and volatility, with market sentiment changing rapidly in response to changes in inflation or interest rate expectations.

**Market Risk and Turmoil.** The Fund is subject to market risk. Market risk includes unexpected directional price movements, deviations from historical pricing relationships, changes in the regulatory environment, changes in market volatility, panicked or forced selling of assets and contraction of available credit or other financing sources. The success of the Fund's activities may be affected by general economic and market conditions, such as interest rates, availability of credit, inflation rates, economic uncertainty, changes in laws and national and international political circumstances. Although globally and among developed countries there has been a relatively stable political environment for decades, there is no guarantee that such stability will be maintained in the future. International policies, relationships, and trade agreements, which have generally been perceived as stable or evolving, appear to be much more in flux. Adjustments in major trade relationships have already been met by retaliatory measures from other countries and could cause potential escalation in protectionist behavior leading to a drag on growth prospects as trade and investment and productivity growth are reinforcing and linked. Other drivers of geopolitical, economic and market risk also may come from, among other things, increased political tension on the domestic and international stages, substantial slowdown and outright recessions in certain markets, pressure on oil prices, rising corporate leverage, continuous abnormally low global interest rates, structural stresses in the European Union, international terrorist activity, and armed conflicts and risk of armed conflicts. Similarly, environmental and public health risks, such as natural disasters, pandemics or epidemics, or widespread fear that such events may occur, may impact markets adversely and cause market volatility in both the short- and long-term. In addition, the expanded influence of social media platforms on the market, combined with the access to low cost retail brokerage, can exacerbate the volatility of particular instruments. Any of these developments, or the perception that any of these developments are likely to occur or worsen, could have a material adverse effect on economic growth or business activity, result in the relocation of businesses, cause business interruptions, lead to economic recession (or depression), and impact the stability of financial markets or financial institutions and the financial and monetary system. The Fund may be affected by these developments in ways that are not foreseeable, and there is a possibility that such developments could have a significant adverse effect on the Fund and its ability to achieve its investment objective. Market turmoil may negatively affect the Fund's performance. Such factors may affect the level and volatility of security prices and liquidity of the Fund's investments. Credit markets may become illiquid, credit spreads may widen and the equity markets may lose substantial value. Such market conditions may cause the Fund to suffer substantial losses and/or implement measures that adversely affect the Fund. Changes in the value of securities may be temporary or may last for extended periods.

**Risks Related to Cybersecurity and Information Technology.** The Fund and its service providers have administrative and technical safeguards in place with respect to information security. Nevertheless, the Fund and its service providers are potentially susceptible to operational and information security risks resulting from a cyber-attack as the Fund is highly dependent upon the effective operation of their computer systems and those of their business partners. These risks include, among other things, the theft, misuse, corruption and destruction of data maintained online or digitally, denial of service on websites and other operational disruption and unauthorized release

of confidential customer information. Cyber-attacks affecting the Fund's service providers, financial intermediaries, and affiliated or other third parties may adversely affect the Fund and its shareholders. For instance, cyber-attacks may interfere with the processing of Fund transactions, including the processing of orders, impact the Fund's ability to calculate NAVs, cause the release and possible destruction of confidential customer or business information, impede trading, subject the Fund and/or its service providers and intermediaries to regulatory fines and financial losses and/or cause reputational damage. Cybersecurity risks may also affect the issuers of securities in which the Fund invests, which may cause the Fund's investments to lose value. The Fund may also incur additional costs for cybersecurity risk management in the future. Although the Fund and its service providers have adopted security procedures to minimize the risk of a cyber-attack, there can be no assurance that the Fund or its service providers will avoid losses affecting the Fund due to cyber-attacks or information security breaches in the future.

Recent technological advances in artificial intelligence, robotics and machine learning technologies, and their current and potential future applications including in the financial sectors, as well as the legal and regulatory frameworks within which they operate, continue to rapidly evolve. It is not possible to predict the full extent of current or future risks of these new technologies. Regulations related to these technologies also may impose certain obligations on organizations, and the costs of monitoring and responding to such regulations, as well as the consequences of non-compliance, could have an adverse effect on organizations connected to the Fund and its investments. In addition, the Fund and its investments could be exposed to risks to the extent third-party service providers or any counterparties use these technologies in their business activities.

**DETERMINING NET ASSET VALUE ("NAV") AND VALUING PORTFOLIO SECURITIES**

Normally, The Fund's NAV is determined, and the shares of the Fund are priced, as of the valuation time(s) indicated in the Prospectus on each Business Day. A "Business Day" is a day on which the NYSE is open. In the case of the Bond Fund, a Business Day on which the NYSE and the bond market are open. The Bond Fund is authorized to close earlier than is customary for a Business Day upon the recommendation of both the Securities Industry and Financial Markets Association and the Adviser. In the event that the Bond Fund closes earlier than is customary for a Business Day, the Bond Fund's NAV calculation for that day will occur as of the time of the earlier close. The NYSE generally is closed in observance of the following holidays: New Year's Day, Dr. Martin Luther King, Jr. Day, Presidents' Day, Good Friday, Memorial Day, Juneteenth, Independence Day, Labor Day, Thanksgiving, and Christmas Day.

In the event of an emergency or other disruption in trading on the NYSE, the Fund's share price normally will be determined based upon the close of the NYSE. In the event of an emergency or other disruption in trading on the bond market, the Bond Fund's share price will normally be determined based upon the close of the bond market.

The Fund generally values its investments based upon their last reported sale prices, market quotations, or estimates of value provided by an independent pricing service as of the time as of which the Fund's share price is calculated. The Board has designated the Adviser as the "valuation designee" in accordance with Rule 2a-5 under the 1940 Act.

**Investment Company Securities**

Shares of another open-end investment company (mutual fund) held by the Fund are valued at the latest closing NAV of such mutual fund. Shares of any ETFs held by the Fund are valued in the manner described below under "Equity Securities."

**Convertible Fixed Income Securities**

Convertible fixed income securities are valued in the same manner as any fixed income security. Non-convertible fixed income securities are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices and may reflect appropriate factors such as institution-sized trading in similar groups of securities, developments related to special securities, yield, quality, coupon rate, maturity, type of issue, individual trading characteristics, and other market data. Securities for which market quotations are not readily available are valued at fair value as determined in good faith by or under the supervision of the Trust's officers in a manner specially authorized by the Board or its designee in accordance with applicable Rules under the 1940 Act, subject to Board oversight. Short-term obligations having 60 days or less to maturity are valued on the basis of amortized cost, except for convertible fixed income securities.

**Equity Securities**

Each equity security (including ETFs) is valued at the closing price on the exchange where the security is principally traded. Each security traded in the over-the-counter market (but not including securities the trading activity of which is reported on Nasdaq's Automated Confirmation Transaction ("ACT") System) is valued at the bid based upon quotes furnished by market makers for such securities. Each security the trading activity of which is reported on Nasdaq's ACT System is valued at the Nasdaq Official Closing Price.

**Futures and Options Contracts**

For purposes of determining NAV, futures and options contracts generally will be valued 15 minutes after the close of trading of the NYSE.

**Funds that Invest a Significant Amount of their Assets in Foreign Securities**

Time zone arbitrage. A Fund that invests a significant amount of its assets in foreign securities, may be exposed to attempts by investors to engage in "time-zone arbitrage." Using this technique, investors seek to take advantage of differences in the values of foreign securities that might result from events that occur after the close of the foreign securities market on which a security is traded and before the close of the NYSE that day, when the Fund calculates its NAV.

If successful, time zone arbitrage might dilute the interests of other shareholders. The Fund uses "fair value pricing" under certain circumstances, to adjust the closing market prices of foreign securities to reflect what the Board or its designee in accordance with applicable Rules under the 1940 Act subject to Board oversight considers to be their fair value. Fair value pricing may also help to deter time zone arbitrage.

**Fair Value Pricing**

If market quotations are not readily available, or (in the Adviser's judgment) do not accurately reflect the fair value of a security, or if after the close of the principal market on which a security held by the Fund is traded and before the time as of which the Fund's net asset value is calculated that day, an event occurs that the Adviser learns of and believes in the exercise of its judgment will cause a material change in the value of that security from the closing price of the security on the principal market on which it is traded, that security may be valued by another method that the Board or its designee, in accordance with applicable Rules under the 1940 Act subject to Board oversight, believes would more accurately reflect the security's fair value.

The Fund's use of fair value pricing procedures involves subjective judgments and it is possible that the fair value determined for a security may be materially different from the value that could be realized upon the sale of that security. Accordingly, there can be no assurance that the Fund will obtain the fair value assigned to a security if it were to sell the security at approximately the same time at which the Fund determines its NAV per share.

**Other Valuation Information**

Under the 1940 Act, the Fund is required to act in good faith in determining the fair value of portfolio securities. The SEC has recognized that a security's valuation may differ depending on the method used for determining value. The fair value ascertained for a security is an estimate and there is no assurance, given the limited information available at the time of fair valuation, that a security's fair value will be the same as or close to the subsequent opening market price for that security.

The Board has adopted valuation procedures for the Fund and has delegated the day-to-day responsibility for fair valuation determinations to the Adviser and the Adviser's Pricing Committee. Those determinations may include consideration of recent transactions in comparable securities, information relating to a specific security, developments in and performance of foreign securities markets, current valuations of foreign or U.S. indices, and adjustment co-efficients based on fair value models developed by independent service providers. The Adviser may, for example, adjust the value of portfolio securities based on fair value models supplied by the service provider when the Adviser believes that the adjustments better reflect actual prices as of the close of the NYSE.

Generally, trading in foreign securities, corporate bonds, U.S. government securities and money market instruments is substantially completed each day at various times prior to the close of the NYSE. The values of such securities used in computing the NAV of The Fund's shares generally are determined at such times. Foreign currency exchange rates are also generally determined prior the close of the NYSE. Occasionally, events affecting the values of such securities and such exchange rates may occur between the times at which such values are determined and the close of the NYSE. If events affecting the value of securities occur during such a period, and the Fund's NAV is materially affected by such changes in the value of the securities, then these securities will be valued at their fair value as determined in good faith by the Adviser in accordance with applicable law. Other securities and assets for which market quotations are not readily available or for which valuation cannot be provided are valued as determined in good faith by the Adviser in accordance with applicable law.

**ADDITIONAL PURCHASE, EXCHANGE, AND REDEMPTION INFORMATION**

The NYSE holiday closing schedule indicated in this SAI under "Determining Net Asset Value ("NAV") and Valuing Portfolio Securities" is subject to change. When the NYSE is closed or when trading is restricted for any reason other than its customary weekend or holiday closings, or under emergency circumstances as determined by the SEC to warrant such action, the Fund may not be able to accept purchase or redemption requests. Each Fund's NAV may be affected to the extent that its securities are traded on days that are not Business Days. Each Fund reserves the right to reject any purchase order in whole or in part.

The Trust has elected, pursuant to Rule 18f-1 under the 1940 Act, to redeem shares of the Fund solely in cash up to the lesser of $250,000 or 1.00% of the NAV of the Fund during any 90-day period for any one shareholder. The remaining portion of the redemption may be made in securities or other property, valued for this purpose as they are valued in computing the NAV of each class of the Fund. Shareholders receiving securities or other property on redemption may realize a gain or loss for tax purposes and may incur additional costs as well as the associated inconveniences of holding and/or disposing of such securities or other property.

Pursuant to Rule 11a-3 under the 1940 Act, the Fund's are required to give shareholders at least 60 days' notice prior to terminating or modifying The Fund's exchange privilege. The 60-day notification requirement may, however, be waived if (1) the only effect of a modification would be to reduce or eliminate an administrative fee, redemption fee, or CDSC ordinarily payable at the time of exchange or (2) the Fund temporarily suspends the offering of shares as permitted under the 1940 Act or by the SEC or because it is unable to invest amounts effectively in accordance with its investment objective and policies.

The Fund reserves the right at any time without prior notice to shareholders to refuse exchange purchases by any person or group if, in the Adviser's judgment, the Fund would be unable to invest effectively in accordance with its investment objective and policies, or would otherwise be adversely affected.

The Fund has authorized one or more brokers or other financial services institutions to accept on its behalf purchase and redemption orders. Such brokers or other financial services institutions are authorized to designate plan administrators and other intermediaries to accept purchase and redemption orders on the Fund's behalf. The Fund will be deemed to have received a purchase or redemption order when an authorized broker or other financial services institutions, or, if applicable, a broker's or other financial services institutions authorized designee, accepts the order. Customer orders will be priced at The Fund's NAV next computed after they are accepted by an authorized broker or other financial services institutions or the broker's or other financial services institution's authorized designee.

If you hold your Fund shares in an account established with a financial intermediary, contact your financial intermediary in advance of placing a request for an exchange to confirm your ability to exchange with a particular Victory Fund.

**Purchasing Shares**

**Alternative Sales Arrangements — Class A, C, I, R, R6, Y, and Member Class Shares. Alternative sales arrangements permit an investor to choose the method of purchasing shares that is more beneficial depending on the amount of the purchase, the length of time the investor expects to hold shares and other relevant circumstances. When comparing the classes of shares, when more than one is offered in the same Fund, investors should understand that the purpose and function of the Class C and Class R shares asset-based sales charge are the same as those of the Class A initial sales charge. Any salesperson or other person entitled to receive compensation for selling Fund shares may receive different compensation with respect to one class of shares in comparison to another class of shares. Generally, Class A shares have lower ongoing expenses than Class C shares, but are subject to an initial sales charge. Which class would be advantageous to an investor depends on the number of years the shares will be held. Over very long periods of time, the lower expenses of Class A shares may offset the cost of the Class A initial sales charge. Not all Investment Professionals (as described in The Fund's Prospectus) will offer all classes of shares.**

Each class of shares represents interests in the same portfolio investments of the Fund. However, each class has different shareholder privileges and features. The net income attributable to a particular class and the dividends payable on these shares will be reduced by incremental expenses borne solely by that class, including any asset-based sales charge to which these shares may be subject.

No initial sales charges or CDSCs are imposed on Class Y shares. Class Y shares are not subject to the Rule 12b-1 fees described in this SAI under "Rule 12b-1 Distribution and Service Plans." There is no automatic conversion feature applicable to Class Y shares. Distributions paid to holders of the Fund's Class Y shares may be reinvested in additional Class Y shares of that Fund or Class Y shares of a different Fund. Only certain investors are eligible to buy Class Y shares, as set forth in the Fund's Prospectus, and your financial advisor or other financial intermediary can help you determine whether you are eligible to invest.

The Fund reserves the right to change the criteria for eligible investors and the investment minimums related to each class of shares. The Fund also reserves the right to refuse a purchase order for any reason, including if it believes that doing so would be in the best interest of the Fund and shareholders.

The methodology for calculating the NAV, dividends and distributions of the share classes of the Fund recognizes two types of expenses. General expenses that do not pertain specifically to a class are allocated to the shares of each class, based upon the percentage that the net assets of such class bears to the Fund's total net assets and then pro rata to each outstanding share within a given class. Such general expenses include (1) management fees, (2) legal, bookkeeping and audit fees, (3) fees to the Trustees who are not affiliated with the Adviser, (4) custodian expenses, (5) share issuance costs, (6) organization and start-up costs, (7) interest, taxes and brokerage commissions, and (8) non-recurring expenses, such as litigation costs. Other expenses that are directly attributable to a class are allocated equally to each outstanding share within that class. Such expenses include (1) Rule 12b-1 distribution fees and shareholder servicing fees, (2) incremental transfer and shareholder servicing agent fees and expenses, (3) registration fees, and (4) printing and mailing costs of shareholder reports, prospectuses, statements of additional information, and other materials for current shareholders. As described below under "Expenses," unless agreed upon otherwise with a third party, all expenses incurred in administration of the Fund will be charged to each particular Fund.

**Payments to Broker-Dealers and Other Financial Intermediaries.** If you purchase the Fund through a financial intermediary (including broker-dealers, banks, third party administrators, retirement plan record-keepers, or other financial intermediaries) the Fund may pay for sub-transfer agent, recordkeeping and/or similar administrative services (administrative services) for all classes other than Class R6. Depending upon the particular share class and/or contractual agreement, these payments may be calculated based on average net assets of the Fund that are serviced by the intermediary or on a per account basis. The administrative services may be related to

investments by participants in retirement and benefit plans, investors in mutual fund advisory programs, and clients of financial intermediaries that maintain omnibus or other accounts for their clients. Services provided include but are not limited to the following: transmitting net purchase and redemption orders; maintaining separate records for shareholders that reflect purchases, redemptions and share balances; mailing shareholder confirmations and periodic statements; and furnishing proxy materials and periodic fund reports, prospectuses and other communications to shareholders as required.

In addition, the Adviser (or its affiliates), from its own resources, may make substantial payments to various financial intermediaries for the sale of Fund shares and related services for investments in all classes other than Class R6. The Adviser also may reimburse the Distributor (or the Distributor's affiliates) for making these payments. Depending on the particular share class and/or contractual arrangement, these payments may be calculated based on average net assets of the Fund that are serviced by the intermediary or on a per account basis.

These payments may create a conflict of interest by influencing the financial intermediary and its salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary's website for more information.

**Redemptions in Kind.** Subject to its election under Rule 18f-1 under the 1940 Act, the Fund reserves the right to honor requests for redemption or repurchase orders by making payment in whole or in part in readily marketable securities ("redemption in kind") if the amount of such request is large enough to affect operations (for example, if the request is greater than $250,000 or 1% of the Fund's assets). The securities will be chosen by the Fund and valued at the price used in calculating the Fund's NAV on the day of redemption. A shareholder may incur transaction expenses in converting these securities to cash.

**MANAGEMENT OF THE TRUST**

**Board Leadership Structure**

The Trust is governed by the Board, which is comprised of eight Trustees, seven of whom are not "interested persons" of the Trust within the meaning of that term under the 1940 Act (the "Independent Trustees"). The Chair of the Board is an Independent Trustee, who functions as the lead Trustee. The Chair serves as liaison between the Board and its Committees, the Adviser and other service providers. The Chair is actively involved in setting the Board meeting agenda, and participates on certain Board Committees.

**Board Role in Risk Oversight**

In considering risks related to the Fund, the Board consults and receives reports from officers of the Fund and personnel of the Adviser, who are charged with the day-to-day risk oversight function. Matters regularly reported to the Board or a designated committee include certain risks involving, among other things, the Fund's investment portfolios, trading practices, operational matters, financial and accounting controls, and legal and regulatory compliance. The Board has delegated to each of the Compliance Committee and Audit and Risk Oversight Committee certain responsibilities for reviewing reports relating to compliance and enterprise risk, including operational risk, liquidity, and personnel. The Board relies on the Investment Committee to review reports relating to investment risks, that is, risks to the Fund resulting from pursuing the Fund's investment strategies (e.g., credit risk and market risk).

**Trustees and Officers**

The following tables list the Trustees and Officers, their year of birth, position with the Trust, length of time served, principal occupations during the past five years and, where applicable, any directorships of other investment companies or companies whose securities are registered under the Securities Exchange Act of 1934, as amended ("1934 Act"), or who file reports under the 1934 Act. Under the Trust's organizational documents, each Trustee serves as a Trustee of the Trust during the lifetime of the Trust and until its termination except as such Trustee sooner dies, resigns, retires, or is removed. However, pursuant to a policy adopted by the Board, each elected or appointed Independent Trustee may serve as a Trustee until the Trustee reaches age 80, and the Interested Trustee may serve as a Trustee until the Trustee reaches age 80. The Board may change or grant exceptions from this policy at any time without shareholder approval. Each Trustee's address is c/o Victory Funds, 15935 La Cantera Parkway, San Antonio, Texas 78256.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Independent Trustees** | **Independent Trustees** |  |  |  |  |  |
|  |  |  |  |  |  | **Other** |
|  |  |  |  |  |  | &nbsp;&nbsp;&nbsp;**Directorships** |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Position** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Date** |  | **Number of Portfolios** | **Number of Portfolios** | &nbsp;&nbsp;&nbsp;&nbsp;**Held During** |
| **Name and** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Held with** | &nbsp;&nbsp;&nbsp;&nbsp;**Commenced** | **Principal Occupation** | **in Fund Complex** | **in Fund Complex** | **the** |
| **Year of Birth** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**the Trust** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Service** | &nbsp;&nbsp;&nbsp;&nbsp;**During Past 5 Years** | **Overseen by Trustee** | **Overseen by Trustee** | &nbsp;&nbsp;&nbsp;&nbsp;**Past 5 Years** |
| David Brooks | Trustee | &nbsp;&nbsp;May 2005 | Consultant (since 2006) | 60 portfolios comprised | 60 portfolios comprised |  |
| Adcock, |  |  |  | of 32 portfolios in the | of 32 portfolios in the |  |
| Adcock, |  |  |  | Trust, and 28 portfolios | Trust, and 28 portfolios |  |
| (1951) |  |  |  | Trust, and 28 portfolios | Trust, and 28 portfolios |  |
| (1951) |  |  |  | in Victory Portfolios II | in Victory Portfolios II |  |
|  |  |  |  | in Victory Portfolios II | in Victory Portfolios II |  |
| Nigel D.T. | Trustee | &nbsp;&nbsp;August 2002 | Retired | 60 portfolios comprised | 60 portfolios comprised | &nbsp;&nbsp;&nbsp;Director, |
| Andrews, |  |  |  | of 32 portfolios in the | of 32 portfolios in the | &nbsp;&nbsp;&nbsp;Carlyle Secured |
| Andrews, |  |  |  | Trust, and 28 portfolios | Trust, and 28 portfolios | &nbsp;&nbsp;&nbsp;Lending, Inc. |
| (1947) |  |  |  | Trust, and 28 portfolios | Trust, and 28 portfolios | &nbsp;&nbsp;&nbsp;Lending, Inc. |
| (1947) |  |  |  | in Victory Portfolios II | in Victory Portfolios II | &nbsp;&nbsp;&nbsp;(formerly TCG |
|  |  |  |  | in Victory Portfolios II | in Victory Portfolios II | &nbsp;&nbsp;&nbsp;(formerly TCG |
|  |  |  |  |  |  | &nbsp;&nbsp;&nbsp;BDC I, Inc.) |
|  |  |  |  |  |  | &nbsp;&nbsp;&nbsp;(since 2012); |
|  |  |  |  |  |  | &nbsp;&nbsp;&nbsp;Director, |
|  |  |  |  |  |  | &nbsp;&nbsp;&nbsp;Carlyle Credit |
|  |  |  |  |  |  | &nbsp;&nbsp;&nbsp;Solutions, Inc. |
|  |  |  |  |  |  | &nbsp;&nbsp;&nbsp;(formerly TCG |
|  |  |  |  |  |  | &nbsp;&nbsp;&nbsp;BDC II, Inc.) |
|  |  |  |  |  |  | &nbsp;&nbsp;&nbsp;(since 2017) |
| E. Lee Beard\*, | Trustee | &nbsp;&nbsp;May 2005 | Retired | 60 portfolios comprised | 60 portfolios comprised |  |
| (1951) |  |  |  | of 32 portfolios in the | of 32 portfolios in the |  |
|  |  |  |  | Trust, and 28 portfolios | Trust, and 28 portfolios |  |
|  |  |  |  | in Victory Portfolios II | in Victory Portfolios II |  |
| John L. Kelly, | &nbsp;&nbsp;Chair and Trustee | &nbsp;&nbsp;February 2015 | Managing Partner, | 60 portfolios comprised | 60 portfolios comprised | &nbsp;&nbsp;&nbsp;Director, |
| (1953) |  |  | Active Capital Partners | of 32 portfolios in the | of 32 portfolios in the | &nbsp;&nbsp;&nbsp;Caledonia |
|  |  |  | LLC, a strategic | Trust, and 28 portfolios | Trust, and 28 portfolios | &nbsp;&nbsp;&nbsp;Mining |
|  |  |  | consultant (since | in Victory Portfolios II | in Victory Portfolios II | &nbsp;&nbsp;&nbsp;Corporation |
|  |  |  | October 2017) |  |  | &nbsp;&nbsp;&nbsp;(since May |
|  |  |  |  |  |  | 2012) |
| David L. Meyer\*, | Trustee | &nbsp;&nbsp;December 2008 | Retired | 60 portfolios comprised | 60 portfolios comprised |  |
| (1957) |  |  |  | of 32 portfolios in the | of 32 portfolios in the |  |
|  |  |  |  | Trust, and 28 portfolios | Trust, and 28 portfolios |  |
|  |  |  |  | i Vi | P f li II |  |
| Gloria S. Nelund, | Trustee | &nbsp;&nbsp;July 2016 | Chair, CEO, and Co- | 60 portfolios comprised | 60 portfolios comprised | &nbsp;&nbsp;&nbsp;TriLinc Global |
| (1961) |  |  | Founder of TriLinc | of 32 portfolios in the | of 32 portfolios in the | &nbsp;&nbsp;&nbsp;Impact Fund, |
|  |  |  | Global, LLC, an | Trust, and 28 portfolios | Trust, and 28 portfolios | &nbsp;&nbsp;&nbsp;LLC (since |
|  |  |  | investment firm | in Victory Portfolios II | in Victory Portfolios II | 2012) |
|  |  |  |  |  |  | 2012) |
| Timothy Pettee, | Trustee | &nbsp;&nbsp;January 2023 | Chief Investment | 60 portfolios comprised | 60 portfolios comprised |  |
| (1958) |  |  | Officer, Hoya Capital | of 32 portfolios in the | of 32 portfolios in the |  |
|  |  |  | Real Estate LLC (since | Trust, and 28 portfolios | Trust, and 28 portfolios |  |
|  |  |  | February 2022); Chief | in Victory Portfolios II | in Victory Portfolios II |  |
|  |  |  | Investment Officer, Sun |  |  |  |
|  |  |  | America Asset |  |  |  |
|  |  |  | Management Corp. |  |  |  |
|  |  |  | (January 2003-July |  |  |  |
|  |  |  | 2021) |  |  |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Interested Trustee** |  |  |  |  |  |
|  |  |  |  |  | **Other** |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;**Directorships** |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Position** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Date** |  | &nbsp;&nbsp;**Number of Portfolios** | &nbsp;&nbsp;&nbsp;&nbsp;**Held During** |
| **Name and** | &nbsp;&nbsp;&nbsp;&nbsp;**Held with** | **Commenced** | **Principal Occupation** | &nbsp;&nbsp;**in Fund Complex** | **the** |
| **Year of Birth** | &nbsp;&nbsp;&nbsp;&nbsp;**the Trust** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Service** | &nbsp;&nbsp;&nbsp;**During Past 5 Years** | &nbsp;&nbsp;**Overseen by Trustee** | &nbsp;&nbsp;&nbsp;&nbsp;**Past 5 Years** |

---

---

| | | | |
|:---|:---|:---|:---|
| David C. | Trustee | May 2008 | Chief Executive Officer |
| Brown\*\*, |  |  | and Chairman (2013- |
| (1972) |  |  | present), Victory Capital |
|  |  |  | Management Inc.; Chief |
|  |  |  | Executive Officer and |

---

Chairman (2013- present), Victory Capital Holdings, Inc.; Director, Victory Capital Services, Inc. (2013- present); Director, Victory Capital Transfer Agency, Inc. (2019- present)

---

| | |
|:---|:---|
| 138 portfolios comprised | Trustee, Victory |
| of 32 portfolios in the | Portfolios II, |
| Trust, 28 portfolios in | Victory |
| Victory Portfolios II, 45 | Portfolios III, |
| Portfolios in Victory | Victory |
| Portfolios III, 26 | Portfolios IV |
| portfolios in Victory | and Victory |
| Portfolios IV, and 7 | Variable |
| portfolios in Victory | Insurance Funds |
| Variable Insurance Funds | II; Board |
| II. | Member, |
|  | Victory Capital |
|  | Services, Inc. |

---

\*The Board has designated Ms. Beard and Mr. Meyer as its Audit Committee Financial Experts.

\*\*Mr. Brown is an "Interested Person" by reason of his relationship with the Adviser.

**Trustee Qualifications**

The following summarizes the experience and qualifications of the Trustees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•David Brooks Adcock. Mr. Adcock served for many years as general counsel to Duke University and Duke University Health System, where he provided oversight to complex business transactions such as mergers and acquisitions and dispositions. He has served for more than 20 years as a public interest arbitrator for, among others, the New York Stock Exchange, the American Stock Exchange, the National Futures Association, FINRA, and the American Arbitration Association. The Board believes that Mr. Adcock's knowledge of complex business transactions and the securities industry combined with his previous service on the boards of other mutual funds qualifies him to serve on the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Nigel D.T. Andrews. Mr. Andrews served for many years as a management consultant for a nationally recognized consulting company and as a senior executive at GE, including Vice President of Corporate Business Development, reporting to the Chairman, and as Executive Vice President of GE Capital. He also served as a Director and member of the Audit and Risk Committee of Old Mutual plc, a large publicly traded company whose shares are traded on the London Stock Exchange. Mr. Andrews also formerly served as the non-executive chairman of Old Mutual's U.S. asset management business, where he also served on the audit and risk committee. Mr. Andrews also served as a Governor of the London Business School. He serves as a director of Carlyle Secured Lending, Inc. (formerly TCG BDC I, Inc.) and Carlyle Credit Solutions, Inc., (formerly TCG BDC II, Inc.), each a business development company. The Board believes that his experience in these positions, particularly with respect to oversight of risk and the audit function of public companies, as well as his previous service on the boards of other mutual funds qualifies him to serve as a Trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•E. Lee Beard. Ms. Beard, a certified public accountant, has served as the president, chief executive officer and director, and as a chief financial officer, of public, federally insured depository institutions. As such, Ms. Beard is familiar with issues relating to audits of financial institutions. The Board believes that Ms. Beard's experience as the chief executive officer of a depository institution, her service on the boards of other mutual funds and her knowledge of audit and accounting matters qualifies her to serve as a Trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•David C. Brown. Mr. Brown serves as the Chairman and Chief Executive Officer (since 2013) of the Adviser and, as such, is an "interested person" of the Trust. Previously, he served as Co-Chief Executive Officer (2011 - 2013), and President — Investments and Operations (2010 - 2011) and Chief Operating Officer (2004 - 2011) of the Adviser. The Board believes that his position and experience with the Adviser and his previous experience in the investment management business qualifies him to serve as a Trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•John L. Kelly. Mr. Kelly has more than 35 years of experience and leadership roles in the financial services industry including institutional electronic trading, capital markets, corporate and investment banking, retail brokerage, private equity, asset/wealth management, institutional services, mutual funds, and related technology enabled services. He previously served as an Independent Trustee of Victory Portfolios, Victory Institutional Funds, and Victory Variable Insurance Funds from 2008 to 2011. The Board believes that this experience qualifies him to serve as a Trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•David L. Meyer. For six years, Mr. Meyer served as chief operating officer, Investment Wealth Management Division, of Mercantile Bankshares Corp (now PNC Financial Services Corp.) and has served as an officer or on the boards of other mutual funds for many years. The Board believes that his experience, particularly as it related to the operation of registered investment companies, qualifies him to serve as a Trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Gloria S. Nelund. Ms. Nelund has executive and investment management industry experience, including service as chief executive officer of two investment advisory firms. Ms. Nelund also has experience as a co-founder and chief executive officer of an investment firm. Ms. Nelund previously served as the Chairman and Trustee of the boards of the RS Investment Trust and RS Variable Products Trust. The Board believes that this experience qualifies her to serve as a Trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Timothy Pettee. Mr. Pettee served for many years as Chief Investment Officer and Lead Portfolio Manager (Rules Based Funds) of SunAmerica Asset Management Corp., where he was responsible for investment oversight, portfolio management, and securities selection. At SunAmerica, Mr. Pettee also was Chair of the Portfolio Policy and Brokerage and Soft Dollar Committees, and a member of the Proxy and Executive Committees. The Board believes that Mr. Pettee's experience with other mutual funds and his knowledge qualifies him to serve as a Trustee.

**Committees of the Board**

The following standing Committees of the Board are currently in operation: Audit and Risk Oversight, Compliance, Continuing Education, Investment, Service Provider, Board Governance and Nominating, and Agenda. In addition to these standing Committees, the Board may form temporary Sub- or Special Committees to address particular areas of concern. A Committee may form a Sub- Committee to address particular areas of concern to that Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The members of the Audit and Risk Oversight Committee, all of whom are Independent Trustees, are Ms. Beard (Chair), Mr. Andrews, Mr. Kelly, and Ms. Nelund. The primary purpose of this Committee is to oversee the Trust's accounting and financial reporting policies, practices, and internal controls, as required by the statutes and regulations administered by the SEC, including the 1940 Act. The Committee also has overall responsibility for reviewing periodic reports with respect to compliance and enterprise risk, including operational risk and personnel. The Board has designated Mr. Meyer and Ms. Beard as its Audit Committee Financial Experts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The members of the Compliance Committee are Mr. Adcock (Chair), Mr. Andrews, Ms. Beard, Mr. Kelly, and Ms. Nelund. The Compliance Committee oversees matters related to the Fund's compliance program and compliance with applicable laws, rules and regulations and meets regularly with the Trust's Chief Compliance Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The members of the Continuing Education Committee are Mr. Meyer (Chair), Mr. Adcock, Mr. Andrews, Ms. Beard, Mr. Kelly, and Ms. Nelund. The function of this Committee is to develop programs to educate the Trustees to enhance their effectiveness as a Board and individually.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The members of the Investment Committee are Mr. Pettee (Chair), Mr. Adcock, Mr. Kelly, and Mr. Meyer. The function of this Committee is to oversee the Fund's compliance with investment objectives, policies, and restrictions, including those imposed by law or regulation, and assist the Board in its annual review of the Fund's investment advisory agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The members of the Service Provider Committee are Ms. Nelund (Chair), Mr. Andrews, Ms. Beard, and Mr. Kelly. This Committee oversees the negotiation of the terms of the written agreements with the Fund's service providers, evaluates the quality of periodic reports from the service providers (including reports submitted by sub-service providers) and assists the Board in its review of The Fund's service providers, other than the investment adviser and independent auditors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The Board Governance and Nominating Committee consists of all of the Independent Trustees. Mr. Andrews currently serves as the Chair of this Committee. The functions of this Committee are: to oversee Fund governance, including the nomination and selection of Trustees; to evaluate and recommend to the Board the compensation and expense reimbursement policies applicable to Trustees; and periodically, to coordinate and facilitate an evaluation of the performance of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The Board Governance and Nominating Committee will consider nominee recommendations from Fund shareholders, in accordance with procedures established by the Committee. The Fund shareholder should submit a nominee recommendation in writing to the attention of the Chair of the Trust, 15935 La Cantera Parkway, San Antonio, Texas 78256. The Committee (or a designated sub-committee) will screen shareholder recommendations in the same manner as it screens nominations received from other sources, such as current Trustees, management of the Funds or other individuals, including professional recruiters. The Committee need not consider any recommendations when no vacancy on the Board exists, but the Committee will consider any such recommendation if a vacancy occurs within six months after receipt of the recommendation. In administering the

shareholder recommendation process, the Chair, in the Chair's sole discretion, may retain the services of counsel to the Trust or to the Independent Trustees, management of the Fund or any third party. The Committee will communicate the results of the evaluation of any shareholder recommendation to the shareholder who made the recommendation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Agenda Committee consists of the Chair of the Board and the Chair of each other Committee.

During the fiscal year ended June 30, 2025, the Board held eight meetings. The Audit and Risk Oversight Committee held four meetings; the Compliance Committee held four meetings; the Investment Committee held four meetings; the Service Provider Committee held four meetings; and the Board Governance and Nominating Committee held four meetings. The Continuing Education Committee met informally during the fiscal year.

**Officers of the Trust**

The officers of the Trust are elected by the Board to actively supervise the Trust's day-to-day operations. The officers of the Trust, their year of birth, the length of time served, and their principal occupations during the past five years, are detailed in the following table. Each individual holds the same position with the other registered investment companies in the Victory Fund Complex, and each officer serves until the earlier of his or her resignation, removal, retirement, death, or the election of a successor. The mailing address of each officer of the Trust is 15935 La Cantera Parkway, San Antonio, TX 78256. The officers of the Trust receive no compensation directly from the Trust for performing the duties of their offices.

---

| | | | |
|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Date** |  |
| **Name and** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Position with** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Commenced** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Principal Occupation** |
| **Year of Birth** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**the Trust** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Service** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**During Past 5 Years** |
| Thomas | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;President | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;May 2022 | Director, Fund Administration, the Adviser; Treasurer |
| Dusenberry, |  |  | and Principal Financial Officer (May 2023-present); |
| Dusenberry, |  |  | Manager, Fund Administration, the Adviser; Treasurer |
| (1977) |  |  | Manager, Fund Administration, the Adviser; Treasurer |
| (1977) |  |  | and Principal Financial Officer (2020-2022), Assistant |
|  |  |  | and Principal Financial Officer (2020-2022), Assistant |
|  |  |  | Treasurer (2019), Salient MF Trust, Salient Midstream, |
|  |  |  | MLP Fund and Forward Funds; Principal Financial |
|  |  |  | Officer (2018-2021) and Treasurer (2020-2021), Salient |
|  |  |  | Private Access Funds and Endowment PMF Funds; |
|  |  |  | Senior Vice President of Fund Accounting and |
|  |  |  | Operations, Salient Partners (2020-2022); Director of |
|  |  |  | Fund Operations, Salient Partners (2016-2019). Mr. |
|  |  |  | Dusenberry also serves as President of Victory Portfolios |
|  |  |  | II, Victory Portfolios III, Victory Portfolios IV, and |
|  |  |  | Victory Variable Insurance Funds II. |
| Scott A. Stahorsky, | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vice President | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December 2014 | Director, Third-Party Dealer Services & Reg |
| (1969) |  |  | Administration, Fund Administration, the Adviser |
|  |  |  | Administration, Fund Administration, the Adviser |
|  |  |  | (5/1/2023-present); Vice President, Victory Capital |
|  |  |  | Transfer Agency, Inc. (4/20/23-present); Manager, Fund |
|  |  |  | Administration, the Adviser (4/30/23- 2015). Mr. |
|  |  |  | Stahorsky also serves as Vice President of Victory |
|  |  |  | Portfolios II, Victory Portfolios III, Victory Portfolios IV, |
|  |  |  | and Victory Variable Insurance Funds II. |

---

---

| | | | |
|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Date** |  |
| **Name and** | &nbsp;&nbsp;&nbsp;&nbsp;**Position with** | **Commenced** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Principal Occupation** |
| **Year of Birth** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**the Trust** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Service** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**During Past 5 Years** |
| Christopher J. | &nbsp;&nbsp;&nbsp;&nbsp;Secretary | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December 2025 | Associate General Counsel, Registered Funds Chief |
| Kelley (1964) |  |  | Legal Officer, the Adviser (April 2025-present); Mr. |
|  |  |  | Kelley was formerly Senior Vice President and Deputy |
|  |  |  | General Counsel of Amundi US (2024-March 2025); |
|  |  |  | Vice President and Associate General Counsel of Amundi |
|  |  |  | US (2008-2024); Secretary and Chief Legal Officer of |
|  |  |  | the Pioneer Funds (2010-March 2025); Assistant |
|  |  |  | Secretary of the Pioneer Funds (2003-2010); and Vice |
|  |  |  | President and Counsel of Amundi US (2002-2007). Mr. |
|  |  |  | Kelley also serves as Secretary of Victory Portfolios II, |
|  |  |  | Victory Portfolios III, Victory Portfolios IV, and Victory |
|  |  |  | Variable Insurance Funds II. |
| Patricia McClain | &nbsp;&nbsp;&nbsp;&nbsp;Assistant | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;June 2024 | Director, Regulatory Administration, Fund |
| (1962) | &nbsp;&nbsp;&nbsp;&nbsp;Secretary |  | Administration, the Adviser (7/1/19-present). Ms. |
|  |  |  | McClain also serves as Secretary of Victory Portfolios II, |
|  |  |  | Victory Portfolios III, Victory Portfolios IV, and Victory |
|  |  |  | Variable Insurance Funds II. |
| Thomas Reyes | &nbsp;&nbsp;&nbsp;&nbsp;Assistant | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December 2025 | Associate General Counsel, the Adviser (April 2025- |
| (1962) | &nbsp;&nbsp;&nbsp;&nbsp;Secretary |  | present); Mr. Reyes was formerly Associate General |
|  |  |  | Counsel of Amundi US (2023-March 2025); Assistant |
|  |  |  | Secretary of the Pioneer Funds (2010-March 2025); |
|  |  |  | Assistant General Counsel of Amundi US (2013-2023); |
|  |  |  | and Counsel of Amundi US (2007-2013) |
| Matthew J. | &nbsp;&nbsp;&nbsp;&nbsp;Assistant | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December 2025 | Partner, Sidley Austin LLP (January 2025-present); and |
| Kutner (1982) | &nbsp;&nbsp;&nbsp;&nbsp;Secretary |  | Mr. Kutner was formerly Senior Managing Associate, |
|  |  |  | Sidley Austin LLP (2020-December 2024). |
| Carol D. Trevino | &nbsp;&nbsp;&nbsp;&nbsp;Treasurer | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;February 2023 | Director, Financial Reporting, Fund Administration |
| (1965) |  |  | (5/1/23-present); Director, Accounting and Finance, the |
|  |  |  | Adviser (7/1/19-4/30/23); Accounting/ Financial |
|  |  |  | Director, USAA (12/13-6/30/19). Ms. Trevino also serves |
|  |  |  | as Treasurer of Victory Portfolios II, Victory Portfolios |
|  |  |  | III, Victory Portfolios IV, and Victory Variable Insurance |
|  |  |  | Funds II. |
| Christopher Ponte, | &nbsp;&nbsp;&nbsp;&nbsp;Assistant | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December 2017 | Director, Fund and Broker Dealer Finance, Fund |
| (1984) | &nbsp;&nbsp;&nbsp;&nbsp;Treasurer |  | Administration, (5/1/23-present); Victory Capital |
|  |  |  | Transfer Agency, Inc. (5/23-present); Manager, Fund |
|  |  |  | Administration, the Adviser (2017-2023); Chief |
|  |  |  | Financial Officer, Victory Capital Services, Inc. (since |
|  |  |  | 2018). Mr. Ponte also serves as Assistant Treasurer of |
|  |  |  | Victory Portfolios II, Victory Portfolios III, Victory |
|  |  |  | Portfolios IV, and Victory Variable Insurance Funds II. |

---

![](gr1b3pncvryso671fnsa4.jpg)

---

| | | | |
|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Date** |  |
| **Name and** | &nbsp;&nbsp;&nbsp;&nbsp;**Position with** | **Commenced** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Principal Occupation** |
| **Year of Birth** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**the Trust** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Service** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**During Past 5 Years** |
| Chris Frazier | &nbsp;&nbsp;&nbsp;&nbsp;Assistant | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;May 2026 | Senior Manager of Financial Reporting, the Adviser |
| (1974) | &nbsp;&nbsp;&nbsp;&nbsp;Treasurer |  | (April 2025-present); Mr. Frazier was formerly a Senior |
|  |  |  | Manager of Financial Reporting at Amundi US (2005- |
|  |  |  | March 2025). Mr. Frazier also serves as Assistant |
|  |  |  | Treasurer of Victory Portfolios II, Victory Portfolios III, |
|  |  |  | Victory Portfolios IV, Victory Variable Insurance Funds |
|  |  |  | II, and Victory Pioneer ILS Interval Fund. |
| Sean Fox, | &nbsp;&nbsp;&nbsp;&nbsp;Chief | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;June 2022 | Sr. Compliance Officer, the Adviser (2019-Present); |
| (1976) | &nbsp;&nbsp;&nbsp;&nbsp;Compliance |  | Compliance Officer, the Adviser (2015-2019). Mr. Fox |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Officer |  | also serves as Chief Compliance Officer for Victory |
|  |  |  | Portfolios II, Victory Portfolios III, Victory Portfolios IV, |
|  |  |  | and Victory Variable Insurance Funds II. |
| D. Brent Rowse, | &nbsp;&nbsp;&nbsp;&nbsp;Anti-Money | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;October 2024 | Sr. Compliance Officer, the Adviser (4/1/23-present); |
| (1981) | &nbsp;&nbsp;&nbsp;&nbsp;Laundering |  | Compliance Officer, the Adviser (7/1/19-3/31/23). Mr. |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Compliance |  | Rowse also serves as the Anti-Money Laundering |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Officer and |  | Compliance Officer and Identity Theft Officer for |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Identity Theft |  | Victory Portfolios II, Victory Portfolios III, Victory |
|  | &nbsp;&nbsp;&nbsp;&nbsp;Officer |  | Portfolios IV, and Victory Variable Insurance Funds II, |
|  |  |  | and the Anti-Money Laundering Compliance Officer for |
|  |  |  | Victory Capital Services, Inc. |

---

**Fund Ownership**

The following tables show the dollar ranges of Fund shares (and of shares of all series of the Victory Fund Complex) beneficially owned by each Trustee as of December 31, 2025. No Independent Trustee (or any immediate family member) owns beneficially or of record an interest in the Adviser or the Distributor or in any person directly or indirectly controlling, controlled by, or under common control with the Adviser or the Distributor (other than Funds in the Victory Funds Complex). As of December 31, 2025, the Trustees and officers as a group owned beneficially less than 1% of each class of outstanding shares of those series of the Trust.

**Independent Trustees**

---

| | | |
|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Aggregate Dollar Range of** |
|  | &nbsp;&nbsp;&nbsp;&nbsp;**Dollar Range of Beneficial Ownership of Fund** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Ownership** |
|  | &nbsp;&nbsp;&nbsp;&nbsp;**Dollar Range of Beneficial Ownership of Fund** | **of Shares of All Series** |
| **Trustee** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Shares** | **of Shares of All Series** |
| **Trustee** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Shares** | **of the Victory Fund Complex** |
| Mr. Adcock |  | Over $100,000 |
| Mr. Andrews |  | Over $100,000 |
| Ms. Beard |  | Over $100,000 |
| Mr. Kelly |  | Over $100,000 |
| Mr. Meyer |  | Over $100,000 |
| Ms. Nelund |  | Over $100,000 |
| Mr. Pettee |  |  |

---

---

| | | |
|:---|:---|:---|
| **Interested Trustee** |  |  |
|  |  | **Aggregate Dollar Range of** |
|  | **Dollar Range of Beneficial Ownership of Fund** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Ownership** |
|  | **Dollar Range of Beneficial Ownership of Fund** | **of Shares of All Series** |
| **Trustee** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Shares** | **of Shares of All Series** |
| **Trustee** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Shares** | **of the Victory Fund Complex** |
| Mr. Brown\* |  | Over $100,000 |

---

\*Mr. Brown is an "Interested Person" by reason of his relationship with the Adviser.

**Compensation**

Effective January 1, 2026, the Victory Fund Complex pays each Independent Trustee $390,000 per year for his or her services to the Complex. The Board Chair is paid an additional retainer of $140,000 per year. While the Board reserves the right to award reasonable compensation to any Interested Trustee, as of the date of this SAI no Interested Trustee receives compensation for services as a Trustee.

The following tables indicate the compensation received by each Trustee from the Funds covered in this SAI and from the Victory Fund Complex for the fiscal year ended June 30, 2025. As of June 30, 2025, there were 63 funds in the Victory Fund Complex for which the Trustees listed below were compensated. The Trust does not maintain a retirement plan for its Trustees.

---

| | | |
|:---|:---|:---|
| **Independent Trustees** |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Aggregate** |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Compensation** | **Total Compensation from the** |
| **Trustee** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**from the Funds** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Victory Fund Complex** |
| Mr. Adcock | $32673 | $365000 |
| Mr. Andrews\* | $46676 | $365000 |
| Ms. Beard | $33916 | $365000 |
| Mr. Kelly | $64595 | $505000 |
| Mr. Meyer | $46676 | $365000 |
| Ms. Nelund | $46676 | $365000 |
| Mr. Pettee | $46676 | $365000 |

---

\*Mr. Andrews no longer elects to receive a portion of his compensation as deferred compensation. As of June 30, 2025, the value of Mr. Andrews' deferred compensation account was $668,176.

---

| | | |
|:---|:---|:---|
| **Interested Trustee** |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Aggregate** |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Compensation** | **Total Compensation from the** |
| **Trustee** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**from the Fund** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Victory Fund Complex** |
| Mr. Brown\* |  |  |

---

\*Mr. Brown is an "Interested Person" by reason of his relationship with the Adviser.

**Deferred Compensation**

Each Trustee may elect to defer a portion of his or her compensation from the Victory Fund Complex in accordance with a Deferred Compensation Plan adopted by the Board (the "Plan"). Such amounts are invested in one or more Funds in the Victory Fund Complex offered under the Plan or a money market fund, as selected by the Trustee.

As of the last completed fiscal year ended June 30, 2025, the following current Trustees have elected to defer a portion of his or her compensation from the Victory Fund Complex:

---

| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Aggregate** |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Compensation** | **Total Compensation from the** |
| **Trustee** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**from the Fund** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Victory Fund Complex** |
| Mr. Adcock\* | $56351 | $109500 |
| Ms. Beard\*\* | $51308 | $99700 |

---

\*As of June 30, 2025, the value of Mr. Adcock's deferred compensation account was $536,259.

\*\*As of June 30, 2025, the value of Ms. Beard's deferred compensation account was $264,405.

**CONTROL PERSONS AND PRINCIPAL SHAREHOLDERS**

As of the date of this SAI, no shareholders owned 5% or more of a class of the Fund as the Fund had not yet commenced operations prior to the date of this SAI. Each shareholder that beneficially owns more than 25% of the voting securities of a class of the Fund may be deemed a control person of that class of the Fund's outstanding shares and, thereby, may influence the outcome of matters on which shareholders are entitled to vote. Since the economic benefit of investing in the Fund and related voting authority is passed through to the underlying investors of the record owners, it is expected that these record owners generally will not be considered the beneficial owners of the Fund's shares or control persons of the Fund.

**INVESTMENT ADVISER AND OTHER SERVICE PROVIDERS**

**Investment Adviser**

Victory Capital, a New York corporation registered as an investment adviser with the SEC, serves as investment adviser to the Funds. Victory Capital's principal business address is 15935 La Cantera Parkway, San Antonio, TX 78256. Subject to the authority of the Board, the Adviser is responsible for the overall management and administration of the Fund's business affairs. Each of the Adviser's multiple investment teams, referred to separately as investment franchises utilizes its own independent approach to investing. The Adviser is responsible for selecting the Fund's investments according to its investment objective, policies, and restrictions. The Adviser is an indirect wholly owned subsidiary of Victory Capital Holdings, Inc. ("VCH"), a publicly traded Delaware corporation. As of April 30, 2026, the Adviser managed assets totaling in excess of $332.6 billion for numerous clients including large corporate and public retirement plans, Taft-Hartley plans, foundations and endowments, high net worth individuals and mutual funds.

The Adviser is a diversified global asset manager comprised of multiple investment teams, referred to as investment franchises, each of which utilizes an independent approach to investing.

**The Advisory Agreement**

The Adviser serves as the Fund's investment adviser pursuant to an advisory agreement dated as of August 1, 2013 (the "Advisory Agreement"). Unless sooner terminated, the Advisory Agreement between the Adviser and the Trust, on behalf of the Fund, provides that it will continue in effect as to the Fund for two years and for consecutive one-year terms thereafter, provided that such renewal is approved at least annually by the Trustees or by vote of the majority of the outstanding shares of the Fund (as defined under "Miscellaneous" below) and, in either case, by a majority of the Trustees who are not parties to the Advisory Agreement or "interested persons" (as defined in the 1940 Act) of any party to the Advisory Agreement, by votes cast in person at a meeting called for such purpose. The Advisory Agreement is terminable as to any particular Fund at any time on 60 days' written notice without penalty by a vote of the majority of the outstanding shares of the Fund, by vote of the Trustees, or as to all applicable Funds by the Adviser. The Advisory Agreement also terminates automatically in the event of any assignment, as defined by the 1940 Act.

The Advisory Agreement provides that the Adviser shall not be liable for any error of judgment or mistake of law or for any loss suffered by the Fund in connection with the performance of the services pursuant thereto, except a loss resulting from a breach of fiduciary duty with respect to the receipt of compensation for services or a loss resulting from willful misfeasance, bad faith, gross negligence on the part of the Adviser in the performance of its duties, or from reckless disregard by the Adviser of its duties and obligations thereunder.

Under the Advisory Agreement, the Adviser may delegate a portion of its responsibilities to a sub-adviser. In addition, the agreements provide that the Adviser may render services through its own employees or the employees of one or more affiliated companies that are qualified to act as an investment adviser of the Fund provided all such persons are functioning as part of an organized group of persons, managed by authorized officers of the Adviser.

![](gtcoamb09z4dguvan4aw7.jpg)

The following schedule lists the advisory fees for the Fund, as an annual percentage of its average daily net assets:

---

| | |
|:---|:---|
| **Fund** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Advisory Fee** |
| Victory Trivalent Emerging Markets Small-Cap Fund | 0.99% |

---

No advisory fees have been paid by the Fund as the Fund had not yet commenced operations prior to the date of this SAI.

**Management Fee Waiver/Expense Reimbursement**

The Adviser has contractually agreed to waive its management fee and/or reimburse Fund expenses so that the total annual operating expenses (excluding any acquired fund fees and expenses and certain other items such as interest, taxes, dividend, and interest expenses on short sales and brokerage commissions) of the Fund (by share class) do not exceed a certain percentage for a predetermined amount of time. In these instances, the fee and expense table in the Fund's Prospectus provides more details about this arrangement and shows the impact it will have on the Fund's total annual fund operating expenses. Under its contractual agreement with the Fund, the Adviser is permitted to recoup advisory fees waived and expenses reimbursed for up to three years after the date of the waiver or reimbursement, subject to the lesser of any operating expense limits in effect at the time of: (a) the original waiver or expense reimbursement; or (b) the recoupment, after giving effect to the recoupment amount. This agreement may only be terminated by the Board. From time to time, the Adviser may also voluntarily waive its management fee and/or reimburse expenses for the Fund. These voluntary reductions are not reflected in the fee and expense table in the Fund's Prospectus.

From time to time, the Manager may, without prior notice to shareholders, waive all or any portion of fees or agree to reimburse expenses incurred by the Fund.

No information is provided for the Fund as the Fund had not yet commenced operations prior to the date of this SAI.

**Compliance Services**

The Trust and the Adviser are parties to the Agreement to Provide Compliance Services (the "Compliance Agreement") pursuant to which the Adviser furnishes its compliance personnel, including the services of the CCO, and other resources reasonably necessary to provide the Trust with compliance oversight services related to the design, administration, and oversight of a compliance program for the Trust in accordance with Rule 38a-1 under 1940 Act. The funds in Victory Portfolio Trust, in the aggregate, compensate the Adviser for these services.

No compliance fees have been paid by the Fund to Victory Capital under the Compliance Agreement as the Fund had not yet commenced operations prior to the date of this SAI.

**Administrator and Fund Accountant**

Victory Capital serves as the administrator and fund accountant to the Trust pursuant to an agreement dated July 1, 2006, as amended (the "Administration and Fund Accounting Agreement"). Citi Fund Services Ohio, Inc. ("Citi") serves as sub-administrator and sub- fund accountant to the Trust pursuant to an agreement with Victory Capital dated October 1, 2015, as amended (the "Sub-Administration and Sub-Fund Accounting Agreement"). As administrator, Victory Capital supervises the Trust's operations, including the services that Citi provides to the Fund as sub-administrator and sub-fund accountant, but excluding those that Victory Capital supervises as investment adviser, subject to the supervision of the Board.

Under the Administration and Fund Accounting Agreement, for the administration and fund accounting services that Victory Capital renders to the Fund, the Trust, and Victory Portfolios II ("VP II") pays Victory Capital an annual fee, accrued daily and paid monthly, at the following annual rates based on the aggregate average daily net assets of the Trust, VP II: 0.08% of the first $15 billion in aggregate Trust, VP II net assets, plus 0.05% of aggregate Trust, VP II net assets in excess of $15 billion to $30 billion, plus 0.04% of aggregate Trust, VP II net assets in excess of $30 billion. Victory Capital may periodically waive all or a portion of the amount of its fee that is allocated to any Fund in order to increase the Fund's net income available for distribution to shareholders. In addition, the Trust, VP II reimburse Victory Capital for all of its reasonable out-of-pocket expenses incurred as a result of providing the services under the Administration and Fund Accounting Agreement, including costs associated with implementing new reports required by the new RIC Modernization rules adopted by the SEC under the 1940 Act.

Except as otherwise provided in the Administration and Fund Accounting Agreement, Victory Capital pays all expenses that it incurs in performing its services and duties as administrator. Unless sooner terminated, the Administration and Fund Accounting Agreement continues in effect for a period of three years and for consecutive one-year terms thereafter, provided that such continuance is approved by the Board or by vote of a majority of the outstanding shares of the Fund and, in either case, by a majority of the Independent Trustees. The Administration and Fund Accounting Agreement provides that Victory Capital shall not be liable for any error of judgment or mistake of law or any loss suffered by the Trust in connection with the matters to which the Agreement relates, except a loss resulting from bad faith, willful misfeasance, negligence or reckless disregard of its obligations and duties under the Agreement.

Under the Administration and Fund Accounting Agreement, Victory Capital, among other things, coordinates the preparation, filing and distribution of amendments to the Trust's registration statement on Form N-1A, supplements to prospectuses and SAIs, and proxy materials in connection with shareholder meetings; drafts shareholder communications, including annual and semi-annual reports and financial statements; administers the Trust's other service provider contracts; monitors compliance with investment restrictions imposed by the 1940 Act, The Fund's investment objective, defined investment policies, and restrictions, tax diversification, and distribution and income requirements; coordinates The Fund's service arrangements with financial institutions that make the Fund's shares available to their customers; assists with regulatory compliance; supplies individuals to serve as Trust officers; prepares Board meeting materials; and annually determines whether the services that it provides (or the services that Citi provides as sub-administrator) are adequate and complete.

Victory Capital also performs fund accounting services for the Fund, excluding those services that Citi performs as sub-fund accountant. The fund accountant calculates The Fund's NAV, its dividend and capital gain distribution, if any, and its yield. The fund accountant also provides a current security position report, a summary report of transactions and pending maturities, a current cash position report, and maintains the general ledger accounting records for the Fund. The fees that Citi receives for sub-administration and sub-fund accounting services are described in the SAI section entitled "Sub-Administrator and Sub-Fund Accountant."

The Fund has not accrued fees as it had not yet commenced operations prior to the date of this SAI.

**Sub-Administrator and Sub-Fund Accountant**

Citi serves as sub-administrator and sub-fund accountant to the Fund pursuant to the Sub-Administration and Sub-Fund Accounting Agreement. Citi assists in supervising all operations of the Fund (other than those performed by Victory Capital either as investment adviser or administrator), subject to the supervision of the Board.

Unless sooner terminated, the Sub-Administration and Sub-Fund Accounting Agreement continues in effect as to the Fund for a period of three years and for consecutive one-year terms thereafter. The Sub-Administration and Sub-Fund Accounting Agreement provides that Citi shall not be liable for any error of judgment or mistake of law or any loss suffered by the Trust in connection with the matters to which the Agreement relates, except a loss resulting from bad faith, willful misfeasance, negligence, or reckless disregard of its obligations and duties under the Agreement.

Under the Sub-Administration and Sub-Fund Accounting Agreement, Citi calculates Trust expenses and make disbursements; calculates capital gain and distribution information; registers the Fund's shares with the states; prepares shareholder reports, financial statements, and reports to the SEC on Forms N-CEN and N-PORT; coordinates dividend payments; calculates the Fund's performance information; files the Trust's tax returns; supplies individuals to serve as Trust officers; monitors the Fund's status as regulated investment companies under the Code; assists in developing portfolio compliance procedures; reports to the Board amounts paid under shareholder service agreements; assists with regulatory compliance; obtains, maintains and files fidelity bonds and trustees' and officers'/errors and omissions insurance policies for the Trust; assists with liquidity and derivatives risk management services; and assists in the annual audit of the Fund, among other services.

**Transfer Agent**

FIS Investor Services LLC ("FIS"), 4249 Easton Way, Suite 400, Columbus, Ohio 43219, serves as transfer agent and dividend disbursing agent for the Fund. Under its agreement with the Fund, FIS has agreed to (1) issue and redeem shares of the Funds; (2) address and mail all communications by the Fund to its shareholders, including reports to shareholders, dividend and distribution notices, and proxy material for its meetings of shareholders; (3) respond to correspondence or inquiries by shareholders and others relating to its duties; (4) maintain shareholder accounts and certain sub-accounts; and (5) make periodic reports to the Board concerning the Fund's operations.

**Custodian**

**General.** Citibank, 388 Greenwich St., New York, New York 10013, ("Citibank" or the "Custodian") serves as the custodian of the assets of the Fund pursuant to the Global Custodial Services Agreement dated August 5, 2008, as amended (the "Custody Agreement"). The Custodian's responsibilities include safeguarding and controlling The Fund's cash and securities, handling the receipt and delivery of securities, and collecting interest and dividends on The Fund's investments. Pursuant to the Custody Agreement, the Custodian also maintains original entry documents and books of record and general ledgers; posts cash receipts and disbursements; and records purchases and sales based upon communications from the Adviser. The Custodian may, with the approval of the Fund and at its own expense, open and maintain a sub-custody account or accounts on behalf of the Fund, provided that it shall remain liable for the performance of all of its duties under the Custody Agreement.

**Foreign Custody.** Rule 17f-5 under the 1940 Act, which governs the custody of investment company assets outside the United States, allows a mutual fund's board of directors to delegate to a "Foreign Custody Manager" the selection and monitoring of foreign sub- custodian arrangements for the Trust's assets. Accordingly, the Board delegated these responsibilities to the Custodian pursuant to the Custody Agreement. As Foreign Custody Manager, the Custodian must (a) determine that the assets of the Fund held by a foreign sub- custodian will be subject to reasonable care, based on the standards applicable to custodians in the relevant market; (b) determine that the Trust's foreign custody arrangements are governed by written contracts in compliance with Rule 17f-5 (or, in the case of a compulsory

depository, by such a contract and/or established practices or procedures); and (c) monitor the appropriateness of these arrangements and any material change in the relevant contract, practices or procedures. In determining appropriateness, the Custodian will not evaluate a particular country's investment risks, such as (a) the use of compulsory depositories, (b) such country's financial infrastructure, (c) such country's prevailing custody and settlement practices, (d) nationalization, expropriation or other governmental actions, (e) regulation of the banking or securities industry, (f) currency controls, restrictions, devaluations, or fluctuations, and (g) market conditions that affect the orderly execution of securities transactions or affect the value of securities. The Custodian will provide to the Board quarterly written reports regarding the Trust's foreign custody arrangements.

**Line of Credit.** The Fund, along with other funds managed by the Adviser, expects to participate in a 364-day committed credit facility and a 364-day uncommitted, demand credit facility with Citibank. Each such credit facility may be renewed if so agreed by the parties. Under the expected agreement with Citibank, the Fund may borrow up to $600 million, of which $300 million is committed and $300 million is uncommitted. The purpose of each agreement is to meet temporary or emergency cash needs. For the committed credit facility, Citibank received an annual commitment fee of 0.15%. Each Fund pays a pro-rata portion of these fees and pays the interest on any amount that it borrows. Each Fund paid a pro-rata portion of the renewal fee.

**Securities Lending**

The Fund, through a Securities Lending Agreement with Citibank, N.A. ("Citibank"), may lend its securities to qualified financial institutions, such as certain broker-dealers and banks, to earn additional income, net of income retained by Citibank. Borrowers are required to initially secure their loans for collateral in the amount of at least 102% of the value of U.S. securities loaned or at least 105% of the value of non-U.S. securities loaned, marked-to-market daily. Any collateral shortfalls associated with increases in the valuation of the securities loaned generally are cured the next business day. The collateral can be received in the form of cash collateral and/or non-cash collateral. Non-cash collateral can include U.S. government securities and other securities as permitted by SEC guidelines.

The cash collateral is invested in short-term instruments or cash equivalents, primarily open-end investment companies. The Fund effectively does not have control of the non-cash collateral. Collateral requirements are determined daily based on the value of the Fund's securities on loan as of the end of the prior business day. During the time portfolio securities are on loan, the borrower will pay the Fund any dividends or interest paid on such securities plus any fee negotiated between the parties to the lending agreement. The Fund also earns a return from the collateral. The Fund pays Citibank various fees in connection with the investment of cash collateral and fees based on the investment income received from securities lending activities. Loans are terminable upon demand and the borrower must return the loaned securities within the lesser of one standard settlement period or five business days. Although risk is mitigated by the collateral, the Fund could experience a delay in recovering its securities and possible loss of income or value if the borrower fails to return them. In addition, there is a risk that the value of the short-term investments will be less than the amount of cash collateral required to be returned to the borrower.

The Fund's agreement with Citibank does not include master netting provisions. Non-cash collateral received by the Fund may not be sold or repledged, except to satisfy borrower default.

No information is provided for income and fees/compensation related to the Fund's securities lending activities as the Fund had not yet commenced operations prior to the date of this SAI.

**Distributor**

Victory Capital Services, Inc. (the "Distributor"), located at 4900 Tiedeman Road, 4th Floor, Brooklyn, Ohio 44144, serves as distributor for the continuous offering of the shares of the Fund pursuant to a Distribution Agreement between the Distributor and the Trust dated August 1, 2013, as amended (the "Distribution Agreement"). Unless otherwise terminated, the Distribution Agreement will remain in effect with respect to the Fund for two years and will continue thereafter for consecutive one-year terms, provided that the renewal is approved at least annually (1) by the Board or by the vote of a majority of the outstanding shares of the Fund, and (2) by the vote of a majority of the Trustees who are not parties to the Distribution Agreement or interested persons of any such party, cast in person at a meeting called for the purpose of voting on such approval. The Distribution Agreement will terminate in the event of its assignment, as defined under the 1940 Act.

The Distributor has also entered into a Shareholder Services Agreement between the Distributor and Victory Transfer Agency Company Inc. ("VCTA") dated August 20, 2020, under which VCTA provides certain shareholder transactions, shareholder information, and shareholder account maintenance services to the Member Class shares of the Fund for an annual service fee.

The Fund has not paid distribution fees as it had not yet commenced operations prior to the date of this SAI.

**PORTFOLIO MANAGERS**

This section includes information about the Fund's portfolio managers, including information concerning other accounts they manage, the dollar range of Fund shares they own and how they are compensated.

<u>Other Accounts</u>

The following table lists the number and types of accounts managed by each individual and assets under management in those accounts as of December 31, 2025.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Registered** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Registered** | **Other Pooled** | **Other Pooled** |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investment** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investment** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investment** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investment** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Other Accounts** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Other Accounts** |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Companies** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Companies** | **Vehicles** | **Vehicles** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Other Accounts** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Other Accounts** |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Companies** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Companies** | **Vehicles** | **Vehicles** |  |  |
|  | Number | Total | Number | Total | Number | Total |
| Name | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of | &nbsp;&nbsp;&nbsp;&nbsp;Assets | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of | &nbsp;&nbsp;&nbsp;&nbsp;Assets | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of | &nbsp;&nbsp;&nbsp;&nbsp;Assets |
| Name | Accounts | (in Millions) | Accounts | (in Millions) | Accounts | (in Millions) |
|  | Accounts | (in Millions) | Accounts | (in Millions) | Accounts | (in Millions) |
| **Trivalent Team** |  |  |  |  |  |  |
| John W. Evers | 5 | &nbsp;&nbsp;$4474.89 | 3 | &nbsp;&nbsp;$982.60 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3 | &nbsp;&nbsp;$699.01 |
| Robert D. Cerow | 1 | &nbsp;&nbsp;$345.32 | 0 | &nbsp;&nbsp;$- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;$- |

---

The following table sets forth performance-based accounts for which the Fund's portfolio managers were primarily responsible for the day-to-day portfolio management as of December 31, 2025.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Registered** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Registered** | **Other Pooled** | **Other Pooled** |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investment** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investment** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investment** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Investment** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Other Accounts** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Other Accounts** |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Companies** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Companies** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Vehicles** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Vehicles** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Other Accounts** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Other Accounts** |
|  | Number | Total | Number | Total | Number | Total |
| Name | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of | &nbsp;&nbsp;&nbsp;&nbsp;Assets | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of | &nbsp;&nbsp;&nbsp;&nbsp;Assets | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of | &nbsp;&nbsp;&nbsp;&nbsp;Assets |
| Name | &nbsp;&nbsp;Accounts | (in Millions) | &nbsp;&nbsp;Accounts | (in Millions) | &nbsp;&nbsp;Accounts | (in Millions) |
|  | &nbsp;&nbsp;Accounts | (in Millions) | &nbsp;&nbsp;Accounts | (in Millions) | &nbsp;&nbsp;Accounts | (in Millions) |
| **Trivalent Team** |  |  |  |  |  |  |
| John Evers | 1 | $302.12 | 0 | $- | 0 | $- |
| Robert D. Cerow | 1 | $345.32 | 0 | $- |  |  |

---

**Fund Ownership**

Since the Fund had not yet commenced operations prior to the date of this SAI, no shares of the Fund are owned by the portfolio managers.

**Portfolio Manager Compensation**

The Adviser has designed the structure of its portfolio managers' compensation to (1) align portfolio managers' interests with those of the Adviser's clients with an emphasis on long-term, risk-adjusted investment performance, (2) help the Adviser attract and retain high- quality investment professionals, and (3) contribute to the Adviser's overall financial success. Each of the portfolio managers receives a base salary plus an annual incentive bonus for managing the Fund, separate accounts, other investment companies, other pooled investment vehicles and other accounts (including any accounts for which the Adviser receives a performance fee) (together, "Accounts"). A portfolio manager's base salary is dependent on the manager's level of experience and expertise. The Adviser monitors each manager's base salary relative to salaries paid for similar positions with peer firms by reviewing data provided by various independent third-party consultants that specialize in competitive salary information. Such data, however, is not considered to be a definitive benchmark.

Each of the Adviser's investment franchises may earn incentive compensation based on a percentage of the Adviser's revenue attributable to fees paid by Accounts managed by the team. The chief investment officer or a senior member of each team, in coordination with the Adviser, determines the allocation of the incentive compensation earned by the team among the team's portfolio managers by establishing a "target" incentive for each portfolio manager based on the manager's level of experience and expertise in the manager's investment style. Individual performance is based on objectives established annually using performance metrics such as portfolio structure and positioning, research, stock selection, asset growth, client retention, presentation skills, marketing to prospective clients and contribution to the Adviser's philosophy and values, such as leadership, risk management and teamwork. The annual incentive bonus also factors in individual investment performance of each portfolio manager's portfolio or Fund relative to a selected peer group(s). The overall performance results for a manager are based on the composite performance of all Accounts managed by that manager on a combination of one-, three-, and five-year rolling performance periods as compared to the performance information of a peer group of similarly managed competitors.

The Adviser's portfolio managers may participate in the equity ownership plan of the Adviser's parent company. There is an ongoing annual equity pool granted to certain employees based on their contribution to the firm. Eligibility for participation in these incentive programs depends on the manager's performance and seniority.

**Conflicts of Interest**

The Adviser's portfolio managers are often responsible for managing one or more Fund as well as other accounts, such as separate accounts, and other pooled investment vehicles, such as collective trust funds or unregistered hedge funds. A portfolio manager may manage other accounts which have materially higher fee arrangements than the Fund and may, in the future, manage other accounts which have a performance-based fee. A portfolio manager also may make personal investments in accounts he or she manages or supports. The side-by-side management of the Fund along with other accounts may raise potential conflicts of interest by incenting a portfolio manager to direct a disproportionate amount of: (1) their attention; (2) limited investment opportunities, such as less-liquid securities or initial public offering; and/or (3) desirable trade allocations, to such other accounts. In addition, certain trading practices, such as cross-trading between Fund or between the Fund and another account, raise conflict of interest issues. The Adviser has adopted numerous compliance policies and procedures, including a Code of Ethics, and brokerage and trade allocation policies and procedures, which seek to address the conflicts associated with managing multiple accounts for multiple clients. In addition, the Adviser has a designated Chief Compliance Officer (selected in accordance with the federal securities laws) and compliance staff whose activities are focused on monitoring the activities of the Adviser's investment franchises and employees in order to detect and address potential and actual conflicts of interest. However, there can be no assurance that the Adviser's compliance program will achieve its intended result.

**DISTRIBUTION PLANS**

The Trust has adopted distribution and service plans in accordance with Rule 12b-1 under the 1940 Act (each a "Rule 12b-1 Plan") on behalf of Class A, Class C and Class R shares of various Funds. Rule 12b-1 provides in substance that a mutual fund may not engage directly or indirectly in financing any activity that is primarily intended to result in the sale of shares of such mutual fund except pursuant to a plan adopted by the fund under the Rule.

**Rule 12b-1 Plans.** The amount of the Rule 12b-1 fees payable by any share class of the Fund under these Rule 12b-1 Plans is considered compensation and is not related directly to expenses incurred by the Distributor. None of the Rule 12b-1 Plans obligate the Fund to reimburse the Distributor for such expenses. The fees set forth under any Rule 12b-1 Plan will be paid by the respective share class of the Fund to the Distributor unless and until such Plan is terminated or not renewed with respect to the relevant share class of the Fund; any distribution or service expenses incurred by the Distributor on behalf of the Fund in excess of payments of the distribution fees specified above that the Distributor has accrued through the termination date are the sole responsibility and liability of the Distributor and not an obligation of any such Fund.

Each of the Rule 12b-1 Plans has been approved by the Board, including the Independent Trustees, at a meeting called for that purpose. As required by Rule 12b-1, the Board carefully considered all pertinent factors relating to the implementation of the Plans prior to their approval and determined that there was a reasonable likelihood that the Plans would benefit the Fund and shareholders of the applicable class. Additionally, certain support services covered under a Plan may be provided more effectively under the Plan by local entities with whom shareholders have other relationships or by the shareholder's broker.

**CODE OF ETHICS**

The Trust and the Adviser each have adopted a Code of Ethics in accordance with Rule 17j-1 under the 1940 Act. The Adviser's Code of Ethics applies to all of the Adviser's directors and officers and employees with investment advisory duties ("Access Personnel") and all of the Adviser's directors, officers and employees ("Supervised Personnel"). Each Code of Ethics provides that Access Personnel must refrain from certain trading practices. Each Code also requires all Access Personnel (and, in the Adviser Code, all Supervised Personnel) to report certain personal investment activities, including, but not limited to, purchases or sales of securities that may be purchased or held by the Fund. Violations of any Code of Ethics can result in penalties, suspension, or termination of employment.

**PROXY VOTING POLICIES AND PROCEDURES**

In accordance with the 1940 Act, the Trust has adopted policies and procedures for voting proxies related to equity securities held by the Fund (the "Proxy Voting Policy"). The Trust's Proxy Voting Policy is designed to: (i) ensure that proxies are voted in the best interests of shareholders of the Fund with a view toward maximizing the value of their investments; (ii) address conflicts of interests between these shareholders, on the one hand, and affiliates of the Fund, the Adviser or the Distributor, on the other, that may arise regarding the voting of proxies; and (iii) provide for the disclosure of the Fund's proxy voting records and the Proxy Voting Policy.

The Proxy Voting Policy delegates to the Adviser the obligation to vote the Fund's proxies in the best interests of the Fund and its shareholders, subject to oversight by the Board.

To assist the Adviser in making proxy-voting decisions, the Adviser has adopted a Proxy Voting Policy ("Policy") that establishes voting guidelines ("Proxy Voting Guidelines") with respect to certain recurring issues. The Policy is reviewed on an annual basis by the Adviser's Proxy Committee ("Proxy Committee") and revised when the Committee determines that a change is appropriate. The Board annually reviews the Trust's Proxy Voting Policy and the Adviser's Policy and determines whether amendments are necessary or advisable. Voting under the Adviser's Policy may be executed through administrative screening per established guidelines with oversight by the Proxy Committee or upon vote by a quorum of the Proxy Committee. The Adviser allows its Investment Franchises to modify their voting instructions against that of the default policy on a case-by-case basis, provided sufficient justification is provided and approved by the Proxy Committee. The Adviser delegates to Institutional Shareholder Services ("ISS"), an independent service provider, the non-discretionary administration of proxy voting for the Trust, subject to oversight by the Adviser's Proxy Committee. In no circumstances shall ISS have the authority to vote proxies except in accordance with standing or specific instructions given to it by the Adviser.

The Adviser votes proxies in the best interests of the Fund and their shareholders. This entails voting client proxies with the objective of increasing the long-term economic value of Fund assets. The Adviser's Proxy Committee determines how proxies are voted by following established guidelines, which are intended to assist in voting proxies and are not considered to be rigid rules. The Proxy Committee is directed to apply the guidelines as appropriate. On occasion, however, a contrary vote may be warranted when such action is in the best interests of the Fund or if required by the Board or the Fund's Proxy Voting Policy. In such cases, the Adviser may consider, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the effect of the proposal on the underlying value of the securities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the effect on marketability of the securities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the effect of the proposal on future prospects of the issuer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the composition and effectiveness of the issuer's board of directors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the issuer's corporate governance practices

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the quality of communications from the issuer to its shareholders

The Adviser may also take into account independent third party, general industry guidance or other corporate governance review sources when making decisions. It may additionally seek guidance from other senior internal sources with special expertise on a given topic where it is appropriate. The Adviser generally votes on a case-by-case basis, taking into consideration whether implementation of an Environmental, Social, and Governance ("ESG")-related proposal is likely to enhance or protect shareholder value. The investment team's opinion concerning the management and prospects of the issuer may be taken into account in determining whether a vote for or against a proposal is in the Fund's best interests. Insufficient information, onerous requests or vague, ambiguous wording may indicate that a vote against a proposal is appropriate, even when the general principal appears to be reasonable.

The following examples illustrate the Adviser's policy with respect to some common proxy votes. This summary is not an exhaustive list of all the issues that may arise or of all matters addressed in the Guidelines, and whether the Adviser supports or opposes a proposal will depend upon the specific facts and circumstances described in the proxy statement and other available information.

Directors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The Adviser generally supports the election of directors in uncontested elections, except when there are issues of accountability, responsiveness, composition, and/or independence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The Adviser generally supports proposals for an independent chair taking into account factors such as the current board leadership structure, the company's governance practices, and company performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The Adviser generally supports proxy access proposals that are in line with the market standards regarding the ownership threshold, ownership duration, aggregation provisions, cap on nominees, and do not contain any other unreasonably restrictive guidelines.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The Adviser reviews contested elections on a case-by-case basis taking into account such factors as the company performance, particularly the long-term performance relative to the industry; the management track record; the nominee qualifications and compensatory arrangements; the strategic plan of the dissident and its critique of the current management; the likelihood that the proposed goals and objectives can be achieved; the ownership stakes of the relevant parties; and any other context that is particular to the company and the nature of the election.

Capitalization & Restructuring

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The Adviser generally supports capitalization proposals that facilitate a corporate transaction that is also being supported and for general corporate purposes so long as the increase is not excessive and there are no issues of superior voting rights, company performance, previous abuses of capital, or insufficient justification for the need for additional capital.

Mergers and Acquisitions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The Adviser reviews mergers and acquisitions on a case-by-case basis to balance the merits and drawbacks of the transaction and factors such as valuation, strategic rationale, negotiations and process, conflicts of interest, and the governance profile of the company post-transaction.

Compensation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The Adviser reviews all compensation proposals for pay-for-performance alignment, with emphasis on long-term shareholder value; arrangements that risk pay for failure; independence in the setting of compensation; inappropriate pay to non-executive directors, and the quality and rationale of the compensation disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The Adviser will generally vote FOR advisory votes on executive compensation ("say on pay") unless there is a pay-for- performance misalignment; problematic pay practice or non-performance based element; incentive for excessive risk-taking, options backdating; or a lack of compensation committee communication and/or responsiveness to shareholder concerns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The Adviser will vote case-by-case on equity based compensation plans taking into account factors such as the plan cost; the plan features; and the grant practices as well as any overriding factors that may have a significant negative impact on shareholder interests.

Social and Environmental Issues

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The Adviser generally will vote in line with the Board's recommendations, with support limited to circumstances where it is considered that greater disclosure will directly enhance or protect shareholder value and is reflective of a clearly established reporting standard in the market.

Occasionally, conflicts of interest arise between the Adviser's interests and those of the Fund or another client. When this occurs, the Proxy Committee must document the nature of the conflict and vote the proxy in accordance with the Proxy Voting Guidelines unless such guidelines are judged by the Proxy Committee to be inapplicable to the proxy matter at issue. In the event that the Proxy Voting Guidelines are inapplicable or do not mitigate the conflict, the Adviser will seek the opinion of the Adviser's Chief Compliance Officer or consult with an external independent adviser. In the case of a Proxy Committee member having a personal conflict of interest (e.g. a family member is on the board of the issuer), such member will abstain from voting. Finally, the Adviser reports to the Board annually any proxy votes that took place involving a conflict, including the nature of the conflict and the basis or rationale for the voting decision made.

The Fund's Proxy Voting Policy provides that the Fund, in accordance with SEC rules, annually will disclose on Form N-PX the Fund's proxy voting record. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30th is updated each year by August 31st and is available without charge, upon request, by calling toll free 800-539- FUND (800-539-3863) or by accessing the SEC's website at www.sec.gov.

**PORTFOLIO TRANSACTIONS AND BROKERAGE COMMISSIONS**

Subject to the general supervision of the Board, the Adviser is responsible for making decisions with respect to the purchase and sale of portfolio securities on behalf of the Fund. The Adviser is also responsible for the implementation of those decisions, including the selection of broker/dealers to effect portfolio transactions, the negotiation of commissions, and the allocation of principal business and portfolio brokerage. Under the terms of the Advisory Agreement, the Adviser may delegate these responsibilities to a sub-adviser.

Transactions on stock exchanges involve the payment of brokerage commissions. In transactions on stock exchanges in the United States, these commissions are negotiated. Traditionally, commission rates have generally been fixed for trades on stock markets outside the United States. In recent years, however, an increasing number of overseas stock markets have adopted a system of negotiated commission rates. It is expected that equity securities will ordinarily be purchased in the primary markets for such securities, whether over-the-counter or listed, and that listed securities may be purchased in the over-the-counter market if such market is deemed the primary market. In the case of securities traded on the over-the- counter markets, there is generally no stated commission, but the price usually includes an undisclosed commission or markup. In underwritten offerings, the price includes a disclosed, fixed commission (the underwriter's concession) or discount.

Fixed income and convertible securities are bought and sold through broker-dealers acting on a principal basis. These trades generally are not charged a commission, but rather are marked up or marked down by the executing broker-dealer. The Adviser does not know the actual value of the markup/markdown. However, the Adviser attempts to ascertain whether the overall price of a security is reasonable through the use of competitive bids.

Subject to its obligation to seek best execution, the Adviser may use brokerage commissions generated from client transactions to obtain services and/or research from broker-dealers to assist in the Adviser's investment management decision-making process. These services and research are in addition to and do not replace the services and research that the Adviser is required to perform and do not reduce the investment advisory fees payable to the Adviser by the Fund. Such information may be useful to the Adviser in serving both the Fund and other clients and, conversely, such supplemental research information obtained by the placement of orders on behalf of other clients may be useful to the Adviser in carrying out its obligations to the Fund.

Brokerage commissions may never be used to compensate a third party for client referrals unless the client has directed such an arrangement. In addition, brokerage commissions may never be used to obtain research and/or services for the sole benefit of any employee or non-client entity.

It is the policy of the Adviser to seek the "best execution" of its clients' securities transactions. The Adviser strives to execute each client's securities transactions in such a manner that the client's total costs or proceeds in each transaction are the most favorable under the circumstances. Commission rates paid on securities transactions for client accounts must reflect comparative market rates.

The Adviser will consider the full range and quality of a broker's services in placing brokerage including, but not limited to, the value of research provided, execution capability, commission rate, willingness and ability to commit capital, ownership and responsiveness. The lowest possible commission cost alone does not determine broker selection. The transaction that represents the best quality execution for a client account will be executed. Commission ranges and the actual commission paid for trades of listed stocks and over-the-counter stocks may vary depending on, but not limited to, the liquidity and volatility of the stock and services provided to the Adviser by the broker.

The Adviser will make a good faith determination that the commissions paid are reasonable in relationship to the value of the services received. The continuous review of stock commissions is the responsibility of the Adviser's Head of Capital Markets and client trading, brokerage and soft-dollar oversight is performed by the Trade Oversight Committee. Quarterly, the Adviser's research analysts and portfolio managers will participate in a broker vote. The Adviser's Equity Trading Desk will utilize the vote results during the broker selection process. Some brokers executing trades for the Adviser's clients may, from time to time, receive liquidity rebates in connection with the routing of trades to Electronic Communications Networks. Since the Adviser is not a broker, however, it is ineligible to receive such rebates and does not obtain direct benefits for its clients from this broker practice.

Investment decisions for the Fund are made independently from those made for the other Fund or any other investment company or account managed by the Adviser. Such other investment companies or accounts may also invest in the same securities and may follow similar investment strategies as the Fund. The Adviser may combine transaction orders ("bunching" or "blocking" trades) for more than one client account where such action appears to be equitable and potentially advantageous for each account (e.g., for the purpose of reducing brokerage commissions or obtaining a more favorable transaction price.) The Adviser will aggregate transaction orders only if it believes that the aggregation is consistent with its duty to seek best execution for its clients and is consistent with the terms of investment advisory agreements with each client for whom trades are being aggregated. Both equity and fixed income securities may be aggregated. When making such a combination of transaction orders for a new issue or secondary market trade in an equity security, the Adviser adheres to the following objectives:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Fairness to clients both in the participation of execution of orders for their account, and in the allocation of orders for the accounts of more than one client.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Allocation of all orders in a timely and efficient manner.

In some rare cases, "bunching" or "blocking" trades may affect the price paid or received by the Fund or the size of the position obtained by the Fund in an adverse manner relative to the result that would have been obtained if only that particular Fund had participated in or been allocated such trades.

The aggregation of transactions for advisory accounts and proprietary accounts (including partnerships and other accounts in which the Adviser or its associated persons are partners or participants, and managed employee accounts) is permissible. However, no proprietary account may be favored over any other participating account and such practice must be consistent with the Adviser's policies and procedures including its Code of Ethics.

Equity trade orders are executed based only on trade instructions received from portfolio managers by the trading desk. Portfolio managers may enter trades to meet the full target allocation immediately or may meet the allocation through moves in incremental blocks. Orders are processed on a "first-come, first-served" basis. At times, a rotation system may determine "first-come, first-served" treatment when the equity trading desk receives the same order for multiple accounts simultaneously. The Adviser will utilize a rotation whereby the Fund, even if aggregated with other orders, are in the first block(s) to trade within the rotation. To aggregate orders, the equity trading desk must determine that all accounts in the order will benefit. Any new trade that can be blocked with an existing open order may be added to the open order to form a larger block. The Adviser receives no additional compensation or remuneration of any kind as a result of the aggregation of trades. All accounts participating in a block execution receive the same execution price, an average share price, for securities purchased or sold on a trading day. Execution prices may not be carried overnight. Any portion of an order that remains unfilled at the end of a given day shall be rewritten (absent contrary instructions) on the following day as a new order. Accounts with trades executed the next day will receive a new daily average price to be determined at the end of the following day.

If the order is filled in its entirety, securities purchased in the aggregate transaction will be allocated among accounts participating in the trade in accordance with an Allocation Statement prepared at the time of order entry. If the order is partially filled, the securities will be allocated pro rata based on the Allocation Statement. Portfolio managers may allocate executed trades in a different manner than indicated on the Allocation Statement (e.g., non-pro rata) only if all client accounts receive fair and equitable treatment.

In some instances, such as trading in fixed income securities, it may not be practical to complete the Allocation Statement prior to the placement of the order. In that case, the trading desk will complete the Allocation Statement as soon as practicable, but no later than the end of the same business day on which the securities have been allocated to the trading desk by the broker.

Where the full amount of a block execution is not executed, the partial amount actually executed will be allocated on a pro rata basis whenever possible. The following execution methods may be used in place of a pro rata procedure: relative size allocations, security position weighting, priority for specialized accounts, or a special allocation based on compliance approval.

In making investment decisions for the Funds, the Adviser will not inquire or take into consideration whether an issuer of securities proposed for purchase or sale by the Fund is a customer of the Adviser, its parents, subsidiaries or affiliates, and, in dealing with their commercial customers, the Adviser, its parents, subsidiaries and affiliates will not inquire or take into consideration whether securities of such customers are held by the Fund. Portfolio securities will not be purchased from or sold to the Adviser, or the Distributor, or any affiliated person of any of them acting as principal, except to the extent permitted by rule or order of the SEC.

No brokerage commissions were paid by the Fund as the Fund had not yet commenced operations prior to the date of this SAI.

**Affiliated Brokerage.** The Board has authorized the allocation of brokerage to affiliated broker-dealers on an agency basis to effect portfolio transactions. The Board has adopted procedures incorporating the standards of Rule 17e-1 under the 1940 Act, which require that the commission paid to affiliated broker-dealers must be "reasonable and fair compared to the commission, fee or other remuneration received, or to be received, by other broker-dealers in connection with comparable transactions involving similar securities during a comparable period of time."

The Trust will not acquire portfolio securities issued by, make savings deposits in, or enter into repurchase or reverse repurchase agreements with the Adviser or its affiliates. From time to time, when determined by the Adviser to be advantageous to the Fund, the Adviser may execute portfolio transactions through affiliated broker-dealers. All such transactions must be consistent with best execution and completed in accordance with procedures approved by the Board.

No payments were made to any affiliated brokers by the Fund as the Fund had not yet commenced operations prior to the date of this SAI.

**Allocation of Brokerage in Connection with Research Services.** During the last completed fiscal year ended June 30, the Adviser, through agreements or understandings with brokers, or otherwise through an internal allocation procedure, directed brokerage transactions of the Funds to brokers due to research services provided.

**Securities of Regular Brokers or Dealers.** The SEC requires the Trust to provide certain information for those Funds that held securities of their regular brokers or dealers (or their parent companies) during the most recent fiscal year. The Fund did not hold any securities of their regular broker or dealers since they had not yet commenced operations prior to the date of this SAI.

**Portfolio Turnover**

The Fund may sell a portfolio investment soon after its acquisition if the Adviser believes that such a disposition is consistent with attaining the investment objective of the Fund. The Fund's portfolio turnover rates stated in the Prospectuses are calculated by dividing the lesser of The Fund's purchases or sales of portfolio securities for the year by the monthly average value of the portfolio securities. The calculation excludes all securities whose maturities, at the time of acquisition, were one year or less. Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.

The turnover rate for the Fund will vary from year-to-year, and, depending on market conditions, could be greater in periods of unusual market movement and volatility. Transaction costs associated with turnover are borne directly by the Fund and, ultimately, by its shareholders. A high rate of portfolio turnover (generally, over 100% annually) generally will involve correspondingly greater transaction costs. High portfolio turnover may result in the realization of substantial net capital gains. To the extent short-term capital gains are realized, distributions attributable to such gains will be ordinary income for federal income tax purposes.

Portfolio turnover rates are not presented as the Fund had not yet commenced operations prior to the date of this SAI.

**DIVIDENDS, CAPITAL GAINS AND DISTRIBUTIONS**

The Fund distributes substantially all of its net investment income and net capital gains, if any, to shareholders within each calendar year as well as on a fiscal year basis to the extent required for the Fund to qualify for favorable federal tax treatment. The Fund declares and pays dividends annually.

The amount of a class's distributions may vary from time to time depending on market conditions, the composition of the Fund's portfolio and expenses borne by the Fund or borne separately by a class. Dividends are calculated in the same manner, at the same time and on the same day for shares of each class. However, dividends attributable to a particular class will differ due to differences in distribution expenses and other class-specific expenses.

For this purpose, the net income of the Fund, from the time of the immediately preceding determination thereof, shall consist of all interest income accrued on the portfolio assets of the Fund, dividend income, if any, income from securities loans, if any and realized capital gains and losses on the Fund's assets, less all expenses and liabilities of the Fund chargeable against income. Interest income shall include discount earned, including both original issue and market discount, on discount paper accrued ratably to the date of maturity. Expenses, including the compensation payable to the Adviser, are accrued each day. The expenses and liabilities of the Fund shall include those appropriately allocable to the Fund as well as a share of the general expenses and liabilities of the Trust in proportion to the Fund's share of the total net assets of the Trust.

**TAXES**

Information set forth in the Prospectus that relates to federal income taxation is only a summary of certain key federal income tax considerations generally affecting purchasers of shares of the Fund. The following is only a summary of certain additional federal income and excise tax considerations generally affecting the Fund and its shareholders that are not described in the Prospectus. No attempt has been made to present a complete explanation of the federal tax treatment of the Fund or the implications to shareholders and the discussions here and in The Fund's Prospectus are not intended as substitutes for careful tax planning. The following summary does not, except as otherwise set forth herein, discuss any state, local or non-U.S. tax consequences associated with an investment in the Fund. Accordingly, potential purchasers of shares of the Fund are urged to consult their tax advisers with specific reference to their own tax circumstances. Special tax considerations may apply to certain types of investors subject to special treatment under the Code, including, without limitation, financial institutions, insurance companies, pass-through entities (or investors therein), U.S. shareholders whose "functional currency" is not the U.S. dollar, tax-exempt organizations, dealers in securities or currencies, traders in securities or commodities that elect mark to market treatment, or persons that will hold shares as a position in a "straddle," "hedge" or as part of a "constructive sale" for U.S. federal income tax purposes. Unless otherwise noted, this discussion applies only to U.S. shareholders that hold shares as capital assets. A U.S. shareholder is an individual who is a citizen or resident of the United States, a U.S. corporation, a trust if it (a) is subject to the primary supervision of a court in the United States and one or more U.S. persons have the authority to control all substantial decisions of the trust or (b) has made a valid election to be treated as a U.S. person, or any estate the income of which is subject to U.S. federal income tax regardless of its source. Lastly, the tax discussion in the Prospectus and this SAI is based on tax law in effect on the date of the Prospectuses and this SAI and it does not address any proposals to modify such tax laws; such laws and regulations may be changed by legislative, judicial, or administrative action, sometimes with retroactive effect.

**Qualification as a Regulated Investment Company**

The Fund intends to qualify as a regulated investment company under Subchapter M of the Code. As a regulated investment company, the Fund is not subject to federal income tax on the portion of its net investment income (i.e., taxable interest, dividends and other taxable ordinary income, net of expenses) and net capital gain (i.e., the excess of long-term capital gains over short-term capital losses) that it distributes to shareholders, provided that it distributes at least the sum of 90% of its investment company taxable income (i.e., net investment income and the excess of net short-term capital gain over net long-term capital loss) and 90% of its tax-exempt income (net of expenses allocable thereto) for the taxable year (the "Distribution Requirement") and satisfies certain other requirements of the Code that are described below. Distributions by the Fund made during the taxable year or, under specified circumstances, within twelve months after the close of the taxable year, will be considered distributions of income and gains for the taxable year and will therefore count toward satisfaction of the Distribution Requirement.

If the Fund has a net capital loss (i.e., an excess of capital losses over capital gains), the amount thereof may be carried forward and would retain its character as either a short-term capital loss or a long-term capital loss that can be used to offset such capital gains in future years. There is no limitation on the number of years to which net capital losses may be carried. However, the amount of capital loss that can be carried forward and used in any single year is subject to an annual limitation if there is a more than 50% "change in ownership" of the Fund.

In addition to satisfying the Distribution Requirement, a regulated investment company must derive at least 90% of its gross income from dividends, interest, certain payments with respect to securities loans, gains from the sale or other disposition of stock or securities or foreign currencies (to the extent such currency gains are directly related to the regulated investment company's principal business of investing in stock or securities), other income (including but not limited to gains from options, futures, or forward contracts) derived with respect to its business of investing in such stock, securities, or currencies and net income from interests in qualified publicly traded partnerships (the "Income Requirement").

A regulated investment company, in determining its investment company taxable income and net capital gain (i.e., the excess of net long-term capital gain over net short-term capital loss) for any taxable year, may elect (unless it has made a taxable year election for excise tax purposes as discussed below, in which case different rules apply) to treat all or any part of certain net capital losses incurred after October 31 of a taxable year, and certain net ordinary losses incurred after October 31 or December 31 of a taxable year, as if they had been incurred in the succeeding taxable year.

In addition to satisfying the Income and Distribution Requirements described above, the Fund must satisfy an asset diversification test in order to qualify as a regulated investment company. Under this test, at the close of each quarter of the Fund's taxable year, at least

50% of the value of the Fund's assets must consist of cash and cash items, U.S. government securities, securities of other regulated investment companies and securities of other issuers (provided that, with respect to each issuer, the Fund has not invested more than 5% of the value of the Fund's total assets in securities of each such issuer and the Fund does not hold more than 10% of the outstanding voting securities of each such issuer), and no more than 25% of the value of its total assets may be invested in the securities of any one issuer (other than U.S. government securities and securities of other regulated investment companies), two or more issuers that the Fund controls and that are engaged in the same or similar trades or businesses (other than securities of other regulated investment companies), or the securities of one or more qualified publicly traded partnerships. Generally, an option (call or put) with respect to a security is treated as issued by the issuer of the security, not the issuer of the option. For purposes of asset diversification testing, obligations issued or guaranteed by certain agencies or instrumentalities of the U.S. government, such as the Federal Agricultural Mortgage Corporation, the FFCB, FHLB, FHLMC, FNMA, GNMA, and SLMA, are treated as U.S. government securities.

Certain Funds may invest in futures contracts, options on futures contracts, and other similar investments that provide exposure to commodities such as gold or other precious metals, energy, or other commodities. Income or gain, if any, from such investments may not be qualifying income for purposes of the Income Requirements and the Fund's investments in such instruments may not be treated as an investment in a "security" for purposes of the asset diversification test.

If for any taxable year the Fund does not qualify as a regulated investment company after taking into account cure provisions available for certain failures to so qualify (certain of which would result in the imposition of a tax on the Fund), all of its taxable income (including its net capital gain) will be subject to tax at the regular corporate rate without any deduction for distributions to shareholders and such distributions will be taxable to the shareholders as dividends to the extent of the Fund's current and accumulated earnings and profits. Such distributions may be eligible for: (i) the dividends-received deduction, in the case of corporate shareholders; or (ii) treatment as "qualified dividend income," in the case of non-corporate shareholders. In addition, to qualify again to be taxed as a regulated investment company in a subsequent year, the Fund would be required to distribute to shareholders its earnings and profits attributable to non- qualifying years. Further, if the Fund failed to qualify for a period greater than two taxable years, then, in order to qualify as a regulated investment company in a subsequent year, the Fund would be required to elect to recognize and pay tax on any net built-in gain (i.e., the excess of aggregate gain, including items of income, over aggregate loss that would have been realized if the Fund had been liquidated) or, alternatively, be subject to taxation on such built-in gain recognized for a period of five years.

**Excise Tax on Regulated Investment Companies**

A 4% non-deductible excise tax is imposed on a regulated investment company that fails to distribute in each calendar year an amount equal to at least the sum of (i) 98% of its ordinary taxable income for the calendar year and (ii) 98.2% of its capital gain net income for the one-year period ended on October 31 of such calendar year (or, with respect to capital gain net income, at the election of a regulated investment company having a taxable year ending November 30 or December 31, for its taxable year (a "taxable year election")). Tax- exempt interest on municipal obligations is not subject to the excise tax. The balance of such income must be distributed during the next calendar year. For the foregoing purposes, any ordinary income or capital gain net income retained by a regulated investment company that is subject to corporate income tax will be treated as having been distributed during the taxable year ending in such calendar year.

The Fund intends to make sufficient distributions or deemed distributions of its ordinary taxable income and capital gain net income prior to the end of each calendar year to avoid liability for the excise tax. However, investors should note that the Fund may in certain circumstances be required to liquidate portfolio investments to make sufficient distributions to avoid excise tax liability.

**Fund Investments**

In general, gain or loss recognized by the Fund on the disposition of an asset will be a capital gain or loss. In addition, gain will be recognized as a result of certain constructive sales, including short sales "against the box." However, gain recognized on the disposition of a debt obligation (including municipal obligations) purchased by the Fund at a market discount (generally, at a price less than its principal amount) will be treated as ordinary income to the extent of the portion of the market discount that accrued while the Fund held the debt obligation. In addition, under the rules of Code Section 988, gain or loss recognized on the disposition of a debt obligation denominated in a foreign currency or an option with respect thereto, and gain or loss recognized on the disposition of a foreign currency forward contract, futures contract, option or similar financial instrument, or of foreign currency itself, except for regulated futures contracts or non-equity options subject to Code Section 1256 (unless the Fund elects otherwise), generally will be treated as ordinary income or loss to the extent attributable to changes in foreign currency exchange rates.

Certain transactions that may be engaged in by the Fund (such as regulated futures contracts, certain foreign currency contracts and options on stock indexes and futures contracts) will be subject to special tax treatment as "Section 1256 Contracts." Section 1256 Contracts are treated as if they are sold for their fair market value on the last business day of the taxable year, even though a taxpayer's obligations (or rights) under such Section 1256 Contracts have not terminated (by delivery, exercise, entering into a closing transaction, or otherwise) as of such date. Any gain or loss recognized as a consequence of the year-end deemed disposition of Section 1256 Contracts is taken into account for the taxable year together with any other gain or loss that was recognized previously upon the termination of Section 1256 Contracts during that taxable year. Any capital gain or loss for the taxable year with respect to Section 1256 Contracts (including any capital gain or loss arising as a consequence of the year-end deemed sale of such Section 1256 Contracts) generally is treated as 60% long-term capital gain or loss and 40% short-term capital gain or loss. The Fund, however, may elect not to have this

special tax treatment apply to Section 1256 Contracts that are part of a "mixed straddle" with other investments of the Fund that are not Section 1256 Contracts.

The Fund may enter into notional principal contracts, including interest rate swaps, caps, floors, and collars. Treasury Regulations provide, in general, that the net income or net deduction from a notional principal contract for a taxable year is included in or deducted from gross income for that taxable year. The net income or deduction from a notional principal contract for a taxable year equals the total of all of the periodic payments (generally, payments that are payable or receivable at fixed periodic intervals of one year or less during the entire term of the contract) that are recognized from that contract for the taxable year, all of the non-periodic payments (including premiums for caps, floors and collars) that are recognized from that contract for the taxable year and any termination payments that are recognized from that contract for the taxable year. No portion of a payment by a party to a notional principal contract is recognized prior to the first year to which any portion of a payment by the counterparty relates. A periodic payment is recognized ratably over the period to which it relates. In general, a non-periodic payment must be recognized over the term of the notional principal contract in a manner that reflects the economic substance of the contract. A non-periodic payment that relates to an interest rate swap, cap, floor, or collar is recognized over the term of the contract by allocating it in accordance with the values of a series of cash-settled forward or option contracts that reflect the specified index and notional principal amount upon which the notional principal contract is based (or under an alternative method provided in Treasury Regulations). A termination payment is recognized in the year the notional principal contract is extinguished, assigned, or terminated (i.e., in the year the termination payment is made).

Income from options on individual securities written by the Fund will not be recognized by the Fund for tax purposes until an option is exercised or lapses. Any gain recognized by the Fund on the lapse of, or any gain or loss recognized by the Fund from a closing transaction with respect to, an option written by the Fund will be treated as a short-term capital gain or loss. If the Fund enters into a closing transaction, the difference between the premiums received and the amount paid by the Fund to close out its position will generally be treated as short-term capital gain or loss. If an option written by the Fund is exercised, thereby requiring the Fund to sell the underlying security, the premium will increase the amount realized upon the sale of the security, and the character of any gain on such sale of the underlying security as short-term or long-term capital gain will depend on the holding period of the Fund in the underlying security. Because the Fund will not have control over the exercise of the options it writes, such exercises or other required sales of the underlying securities may cause the Fund to realize gains or losses at inopportune times.

The Fund may purchase securities of certain foreign investment funds or trusts that constitute passive foreign investment companies ("PFICs") for federal income tax purposes. If the Fund invests in a PFIC, it has three separate options. First, it may elect to treat the PFIC as a qualified electing fund (a "QEF"), in which event the Fund will each year have ordinary income equal to its pro rata share of the PFIC's ordinary earnings for the year and long-term capital gain equal to its pro rata share of the PFIC's net capital gain for the year, regardless of whether the Fund receives distributions of any such ordinary earnings or capital gains from the PFIC, and such amounts would be subject to the 90% and excise tax distribution requirements described above. In order to make this election with respect to a PFIC in which it invests, the Fund must obtain certain information from the PFIC on an annual basis, which the PFIC may be unwilling or unable to provide. Second, the Fund that invests in marketable stock of a PFIC may make a mark-to-market election with respect to such stock. Pursuant to such election, the Fund will include as ordinary income any excess of the fair market value of such stock at the close of any taxable year over the Fund's adjusted tax basis in the stock. If the adjusted tax basis of the PFIC stock exceeds the fair market value of the stock at the end of a given taxable year, such excess will be deductible as ordinary loss in an amount equal to the lesser of the amount of such excess or the net mark-to-market gains on the stock that the Fund included in income in previous years. Solely for purposes of Code Sections 1291 through 1298, the Fund's holding period with respect to its PFIC stock subject to the election will commence on the first day of the first taxable year beginning after the last taxable year for which the mark-to-market election applied. If the Fund makes the mark-to-market election in the first taxable year it holds PFIC stock, it will not incur the tax described below under the third option.

Finally, if the Fund does not elect to treat the PFIC as a QEF and does not make a mark-to-market election, then, in general, (1) any gain recognized by the Fund upon the sale or other disposition of its interest in the PFIC or any excess distribution received by the Fund from the PFIC will be allocated ratably over the Fund's holding period of its interest in the PFIC stock, (2) the portion of such gain or excess distribution so allocated to the year in which the gain is recognized or the excess distribution is received shall be included in the Fund's gross income for such year as ordinary income (and the distribution of such portion by the Fund to shareholders will be taxable as a dividend, but such portion will not be subject to tax at the Fund level), (3) the Fund shall be liable for tax on the portions of such gain or excess distribution so allocated to prior years in an amount equal to, for each such prior year, (i) the amount of gain or excess distribution allocated to such prior year multiplied by the highest corporate tax rate in effect for such prior year, plus (ii) interest on the amount determined under clause (i) for the period from the due date for filing a return for such prior year until the date for filing a return for the year in which the gain is recognized or the excess distribution is received, at the rates and methods applicable to underpayments of tax for such period, and (4) the distribution by the Fund to its shareholders of the portions of such gain or excess distribution so allocated to prior years (net of the tax payable by the Fund thereon) will be taxable to the shareholders as a dividend.

Some of the debt securities (with a fixed maturity date of more than one year from the date of issuance) that may be acquired by the Fund may be treated as debt securities that are issued originally at a discount. Generally, the amount of the original issue discount ("OID") is treated as interest income and is included in income over the term of the debt security, even though payment of that amount is not received until a later time, usually when the debt security matures. A portion of the OID includable in income with respect to

certain high-yield corporate debt securities (including certain pay-in-kind securities) may be treated as a dividend for U.S. federal income tax purposes.

Some of the debt securities (with a fixed maturity date of more than one year from the date of issuance) that may be acquired by the Fund in the secondary market may be treated as having market discount. Generally, any gain recognized on the disposition of, and any partial payment of principal on, a debt security having market discount is treated as ordinary income to the extent the gain, or principal payment, does not exceed the "accrued market discount" on such debt security. Market discount generally accrues in equal daily installments. The Fund may make one or more of the elections applicable to debt securities having market discount, which could affect the character and timing of recognition of income.

The Fund that holds the foregoing kinds of securities may be required to pay out as an income distribution each year an amount, which is greater than the total amount of cash interest the Fund actually received. Such distributions may be made from the cash assets of the Fund or by liquidation of portfolio securities, if necessary (including when it is not advantageous to do so). The Fund may realize gains or losses from such liquidations. In the event the Fund realizes net capital gains from such transactions, its shareholders may receive a larger capital gain distribution, if any, than they would in the absence of such transactions.

Gain or loss on the sale of securities by the Fund will generally be long-term capital gain or loss if the securities have been held by the Fund for more than one year. Gain or loss on the sale of securities held for one year or less will be short-term capital gain or loss.

The Fund may invest in preferred securities or other securities the federal income tax treatment of which may not be clear or may be subject to recharacterization by the Internal Revenue Service ("IRS"). To the extent the tax treatment of such securities or the income from such securities differs from the tax treatment expected by the Fund, it could affect the timing or character of income recognized by the Fund, potentially requiring the Fund to purchase or sell securities, or otherwise change its portfolio, in order to comply with the tax rules applicable to regulated investment companies under the Code.

The Fund may invest a portion of its net assets in below investment grade securities. Investments in these types of securities may present special tax issues for the Fund. Federal income tax rules are not entirely clear about issues such as when the Fund may cease to accrue interest, OID or market discount, when and to what extent deductions may be taken for bad debts or worthless securities, how payments received on obligations in default should be allocated between principal and interest and whether modifications or exchanges of debt obligations in a bankruptcy or workout context are taxable. These and other issues could affect the Fund's ability to distribute sufficient income to preserve its status as a regulated investment company or to avoid the imposition of U.S. federal income or excise tax.

**Fund Distributions**

The Fund anticipates distributing substantially all of its investment company taxable income for each taxable year. Such distributions will be treated as dividends for federal income tax purposes and may be taxable to non-corporate shareholders as long-term capital gains (a "qualified dividend"), provided that certain requirements, as discussed below, are met. Dividends received by corporate shareholders and dividends that do not constitute qualified dividends are taxable as ordinary income. The portion of dividends received from the Fund that are qualified dividends generally will be determined on a look-through basis. If the aggregate qualified dividends received by the Fund are less than 95% of the Fund's gross income (as specially computed), the portion of dividends received from the Fund that constitute qualified dividends will be reported by the Fund and cannot exceed the ratio that the qualified dividends received by the Fund bears to its gross income. If the aggregate qualified dividends received by the Fund equal at least 95% of its gross income, then all of the dividends received from the Fund will constitute qualified dividends.

No dividend will constitute a qualified dividend (1) if it has been paid with respect to any share of stock that the Fund has held for less than 61 days (91 days in the case of certain preferred stock) during the 121-day period (181-day period in the case of certain preferred stock) beginning on the date that is 60 days (90 days in the case of certain preferred stock) before the date on which such share becomes ex-dividend with respect to such dividend, excluding for this purpose, under the rules of Code Section 246(c), any period during which the Fund has an option to sell, is under a contractual obligation to sell, has made and not closed a short sale of, is the grantor of an option to buy, or has otherwise diminished its risk of loss by holding other positions with respect to, such (or substantially identical) stock; (2) if the non-corporate shareholder fails to meet the holding period requirements set forth in (1) with respect to its shares in the Fund to which the dividend is attributable; or (3) to the extent that the Fund (or shareholder, as applicable) is under an obligation (pursuant to a short sale or otherwise) to make related payments with respect to positions in property substantially similar or related to stock with respect to which an otherwise qualified dividend is paid.

Qualified dividends are, in general, dividends from taxable U.S. corporations and certain foreign corporations. Dividends from a foreign corporation may be qualified dividends if (1) the stock with respect to which the dividend is paid is readily tradable on an established securities market in the United States, (2) the foreign corporation is incorporated in a possession of the United States, or (3) the foreign corporation is eligible for the benefits of a comprehensive income tax treaty with the United States that includes an exchange of information program (and that the Treasury Department determines to be satisfactory for these purposes). The Treasury Department has issued guidance identifying which treaties are satisfactory for these purposes. Notwithstanding the above, dividends received from a foreign corporation that for the taxable year of the corporation in which the dividend was paid, or the preceding taxable year, is a PFIC will not constitute qualified dividends. Substitute payments received by the Fund representing dividends paid on securities loaned out

by the Fund will not be considered qualified dividend income, and distributions by the Fund of such substitute payments will not be eligible to be treated as qualified dividends.

Distributions attributable to dividends received by the Fund from domestic corporations will qualify for the 50% dividends-received deduction ("DRD") for corporate shareholders only to the extent discussed below. Distributions attributable to dividends paid by a foreign corporation, a REIT or a corporation exempt from tax generally do not qualify for the DRD. Substitute payments received by the Fund representing dividends paid on securities loaned out by the Fund will not be treated as dividends eligible for the dividends paid deduction.

Ordinary income dividends paid by the Fund with respect to a taxable year may qualify for the 50% DRD generally available to corporations (other than corporations such as S corporations, which are not eligible for the deduction because of their special characteristics, and other than for purposes of special taxes such as the accumulated earnings tax and the personal holding company tax) to the extent of the amount of dividends received by the Fund from domestic corporations for the taxable year. No DRD will be allowed with respect to any dividend (1) if it has been received with respect to any share of stock that the Fund has held for less than 46 days (91 days in the case of certain preferred stock) during the 91-day period (181-day period in the case of certain preferred stock) beginning on the date that is 45 days (90 days in the case of certain preferred stock) before the date on which such share becomes ex-dividend with respect to such dividend, excluding for this purpose under the rules of Code Section 246(c) any period during which the Fund has an option to sell, is under a contractual obligation to sell, has made and not closed a short sale of, is the grantor of an option to buy, or has otherwise diminished its risk of loss by holding other positions with respect to, such (or substantially identical) stock; (2) to the extent that the Fund is under an obligation (pursuant to a short sale or otherwise) to make related payments with respect to positions in substantially similar or related property; or (3) to the extent the stock on which the dividend is paid is treated as debt-financed under the rules of Code Section 246A. Moreover, the DRD for a corporate shareholder may be disallowed or reduced (1) if the corporate shareholder fails to satisfy the foregoing requirements with respect to its shares of the Fund or (2) by application of Code Section 246(b), which in general limits the DRD to 50% of the shareholder's taxable income (determined without regard to the DRD and certain other items).

If the Fund receives a dividend (other than a capital gain dividend) in respect of any share of REIT stock, then Fund dividends attributable to that REIT dividend income (as reduced by certain Fund expenses) may be reported by the Fund as eligible for the 20% deduction for "qualified REIT dividends" generally available to non-corporate shareholders under the Code. A dividend from the Fund may not be treated as a qualified REIT dividend (1) if it has been paid with respect to any share of REIT stock that the Fund has held for less than 46 days during the 91-day period beginning on the date that is 45 days before the date on which such share becomes ex-dividend with respect to such dividend, excluding for this purpose, under the rules of Code Section 246(c), any period during which the Fund has an option to sell, is under a contractual obligation to sell, has made and not closed a short sale of, is the grantor of an option to buy, or has otherwise diminished its risk of loss by holding other positions with respect to, such (or substantially identical) stock; (2) if the non- corporate shareholder fails to meet the holding period requirements set forth in (1) with respect to its shares in the Fund to which the dividend is attributable; or (3) to the extent that the Fund (or shareholder, as applicable) is under an obligation (pursuant to a short sale or otherwise) to make related payments with respect to positions in property substantially similar or related to stock with respect to which an otherwise qualified dividend is paid. Substitute payments received by the Fund representing qualified REIT dividends paid on REIT securities loaned out by the Fund will not be considered qualified REIT dividends, and distributions by the Fund of such substitute payments will not be eligible for the 20% deduction currently available for ordinary REIT dividends paid to non-corporate shareholders.

The Fund may either retain or distribute to shareholders its net capital gain for each taxable year. The Fund currently intends to distribute any such amounts. If net capital gain is distributed and reported as a capital gain dividend, it will be taxable to shareholders as long- term capital gain, regardless of the length of time the shareholder has held his shares or whether such gain was recognized by the Fund prior to the date on which the shareholder acquired his shares. The Code provides, however, that under certain conditions none of the capital gain recognized upon the Fund's disposition of domestic qualified "small business" stock will be subject to tax (with certain limitations).

Conversely, if the Fund elects to retain its net capital gain, the Fund will be subject to tax thereon (except to the extent of any available capital loss carryovers) at the corporate tax rates. If the Fund elects to retain its net capital gain, it is expected that the Fund also will elect to have shareholders of record on the last day of its taxable year treated as if each received a distribution of his pro rata share of such gain, with the result that each shareholder will be required to report his pro rata share of such gain on his tax return as long-term capital gain, will receive a refundable tax credit for his pro rata share of tax paid by the Fund on the gain, and will increase the tax basis for his shares by an amount equal to the deemed distribution less the tax credit. Organizations or persons not subject to U.S. federal income tax on such capital gains will be entitled to a refund of their pro rata share of such taxes paid by the Fund upon filing appropriate returns or claims for refund with the IRS.

Distributions by the Fund in excess of its current and accumulated earnings and profits will be treated as a tax-free return of capital to the extent of (and in reduction of) the shareholder's tax basis in his shares; any excess will be treated as gain from the sale of his shares, as discussed below.

Distributions by the Fund will be treated in the manner described above regardless of whether such distributions are paid in cash or reinvested in additional shares of the Fund (if that option is available). Distributions reinvested in additional shares of the Fund will be

taxable to shareholders acquiring the additional shares to the same extent as if such distributions had been received in cash. In addition, if the NAV at the time a shareholder purchases shares of the Fund reflects undistributed net investment income, recognized net capital gain, or unrealized appreciation in the value of the assets of the Fund, distributions of such amounts will be taxable to the shareholder in the manner described above, although such distributions economically constitute a return of capital to the shareholder. The amount of undistributed income and gain the Fund has at the time a shareholder purchases or sells shares can impact the amount of the shareholder's gain or loss on the sale and the treatment and tax rates applicable to the shareholder's return on its investment in the Fund. Before investing you may want to consult your tax adviser.

Ordinarily, shareholders are required to take distributions by the Fund into account in the year in which the distributions are made. However, dividends declared in October, November, or December of any year and payable to shareholders of record on a specified date in such a month will be deemed to have been received by the shareholders (and paid by the Fund) on December 31 of such calendar year if such dividends are actually paid in January of the following year. In addition, certain other distributions made after the close of the Fund's taxable year may be "spilled back" and treated as paid by the Fund (except for the purposes of the 4% nondeductible excise tax) during such taxable year. In such case, a shareholder will be treated as having received such dividends in the taxable year in which the distributions were actually made. Shareholders will be advised annually as to the U.S. federal income tax consequences of distributions made (or deemed made) during the year.

Certain U.S. shareholders, including individuals and estates and trusts, are subject to an additional 3.8% Medicare tax on all or a portion of their "net investment income," which should include dividends from the Fund and net gains from the disposition of shares of the Fund. Exempt-interest dividends from the Fund generally are not included in net investment income for purposes of this tax. U.S. shareholders are urged to consult their own tax advisers regarding the implications of the additional Medicare tax resulting from an investment in the Fund.

The Fund will be required in certain cases to withhold and remit to the U.S. Treasury backup withholding taxes at the applicable rate on distributions paid to any shareholder (1) who has failed to provide a correct taxpayer identification number, (2) who is subject to backup withholding for failure to report the receipt of interest or dividend income properly, or (3) who has failed to certify to the Fund that it is not subject to backup withholding or is an "exempt recipient" (such as a corporation). Amounts withheld under the backup withholding rules will be allowed as a refund or a credit against a shareholder's U.S. federal income tax liability provided the required information is furnished to the IRS.

If the Fund invests in underlying regulated investment companies, distributions of short-term capital gains by such underlying funds would be recognized as ordinary income by the Fund and would not be able to be offset by the Fund's capital losses or capital loss carryforwards (if any). Losses of an underlying fund would not offset any income or gain of the Fund. Losses realized by the Fund on the sale of shares of underlying funds may be indefinitely or permanently deferred under the wash sale rules. Each of these effects is caused by the Fund's investment in the underlying funds and may result in tax distributions to Fund shareholders being of higher magnitudes.

**Sale or Redemption of Shares**

A shareholder will generally recognize gain or loss on the sale or redemption of shares of the Fund (including an exchange of shares of the Fund for shares of another Fund) in an amount equal to the difference between the proceeds of the sale or redemption and the shareholder's adjusted tax basis in the shares. All or a portion of any loss may be disallowed if the shareholder purchases other shares of the same Fund within 30 days before or after the sale or redemption. In such a case, the basis of the shares acquired will be increased to reflect the disallowed loss. In general, any gain or loss arising from (or treated as arising from) the sale or redemption of shares of the Fund will be considered capital gain or loss and will be long-term capital gain or loss if the shares were held for longer than one year. However, any capital loss arising from the sale or redemption of shares held for six months or less will be disallowed to the extent of the amount of exempt-interest dividends received on such shares (unless the loss is with respect to shares of the Fund for which the holding period began after December 22, 2010, and the Fund declares exempt-interest dividends on a daily basis in an amount equal to at least 90% of its net tax-exempt interest and distributes such dividends at least monthly) and (to the extent not disallowed) will be treated as a long-term capital loss to the extent of the amount of capital gain dividends received on such shares. For these purposes, the special holding period rules of Code Section 246(c) (discussed above in connection with qualified dividends, qualified REIT dividends and the dividends-received deduction) generally will apply in determining the holding period of shares. Capital losses in any year are deductible only to the extent of capital gains plus, in the case of a noncorporate taxpayer, $3,000 of ordinary income.

If a shareholder (1) incurs a sales load in acquiring shares of the Fund, (2) disposes of such shares less than 91 days after they are acquired and (3) subsequently acquires, during the period beginning on the date of the disposition referred to in clause (2) and ending on January 31 of the calendar year following the calendar year that includes the date of such disposition, shares of the Fund or another Fund at a reduced sales load pursuant to a right acquired in connection with the acquisition of the shares disposed of, then the sales load on the shares disposed of (to the extent of the reduction in the sales load on the shares subsequently acquired) shall not be taken into account in determining gain or loss on such shares but shall be treated as incurred on the acquisition of the subsequently acquired shares.

**Tax Shelter and Other Reporting Requirements**

If a shareholder realizes a loss on the disposition of shares of the Fund of at least $2 million in any single taxable year or at least $4 million in any combination of taxable years for an individual shareholder, or at least $10 million in any single taxable year or at least $20 million in any combination of taxable years for a corporate shareholder, the shareholder must file with the IRS a disclosure statement on Form 8886. Shareholders should consult their tax advisers to determine the applicability of this requirement in light of their individual circumstances.

**Foreign Taxation**

Income received by the Fund from sources within foreign countries may be subject to withholding and other taxes imposed by such countries. Tax treaties and conventions between certain countries and the United States may reduce or eliminate such taxes. If more than 50% of the value of the Fund's total assets at the close of its taxable year consists of securities of foreign corporations, the Fund may be able to elect to "pass through" to the Fund's shareholders the amount of eligible foreign income and similar taxes paid by the Fund. If this election is made, a shareholder generally subject to tax will be required to include in gross income (in addition to taxable dividends actually received) his or her pro rata share of the foreign taxes paid by the Fund, and may be entitled either to deduct (as an itemized deduction) his or her pro rata share of foreign taxes in computing his or her taxable income or to use it as a foreign tax credit against his or her U.S. federal income tax liability, subject to certain limitations. In particular, a shareholder must hold his or her shares (without protection from risk of loss) on the ex-dividend date and for at least 15 more days during the 30-day period surrounding the ex-dividend date to be eligible to claim a foreign tax credit with respect to a gain dividend. No deduction for foreign taxes may be claimed by a non- corporate shareholder who does not itemize deductions. Each shareholder will be notified days after the close of the Fund's taxable year whether the foreign taxes paid by the Fund will "pass through" for that year.

Generally, a credit for foreign taxes is subject to the limitation that it may not exceed the shareholder's U.S. tax attributable to his or her total foreign source taxable income. For this purpose, if the pass-through election is made, the source of the Fund's income will flow through to shareholders of the Fund. With respect to the Fund, gains from the sale of securities will be treated as derived from U.S. sources and certain currency fluctuation gains, including fluctuation gains from foreign currency-denominated debt securities, receivables and payables will be treated as ordinary income derived from U.S. sources. The limitation on the foreign tax credit is applied separately to foreign source passive income, and to certain other types of income. A shareholder may be unable to claim a credit for the full amount of his or her proportionate share of the foreign taxes paid by the Fund.

**Foreign Shareholders**

Taxation of a shareholder who, as to the United States, is a nonresident alien individual or foreign corporation ("foreign shareholder"), depends on whether the income from the Fund is "effectively connected" with a U.S. trade or business carried on by such shareholder.

If the income from the Fund is not effectively connected with a U.S. trade or business carried on by a foreign shareholder, subject to the discussion below with respect to "interest-related dividends" and "short-term capital gain dividends," ordinary income dividends (including dividends that would otherwise be treated as qualified dividends to an applicable non-foreign shareholder) paid to such foreign shareholder would be subject to a 30% U.S. withholding tax (or lower applicable treaty rate) upon the gross amount of the dividend. Except as described below, such foreign shareholder would generally be exempt from U.S. federal income tax, including withholding tax, on gains realized on the sale of shares of the Fund or capital gain dividends unless the foreign shareholder is a nonresident alien individual present in the United States for a period or periods aggregating 183 days or more during the calendar year.

U.S. withholding tax generally does not apply to amounts properly designated by the Fund as an "interest-related dividend" or a "short- term capital gain dividend." The aggregate amount treated as an interest-related dividend for a year is limited to the Fund's qualified net interest income for the year, which is the excess of the sum of the Fund's qualified interest income (generally, its U.S.-source interest income) over the deductions properly allocable to such income. The aggregate amount treated as a "short-term capital gain dividend" is limited to the excess of the Fund's net short-term capital gain over its net long-term capital loss. In order to qualify for this exemption from withholding, a foreign investor needs to comply with applicable certification requirements relating to its non-U.S. status (including, in general, furnishing an IRS Form W-8BEN, W-8BEN-E or substitute Form). In the case of shares held through an intermediary, the intermediary may withhold even if the Fund reported the payment as qualified net interest income or qualified short-term capital gain. Foreign investors should contact their intermediaries with respect to the application of these rules to their accounts.

If the income from the Fund is effectively connected with a U.S. trade or business carried on by a foreign shareholder, then any dividends, and any gains realized upon the sale of shares of the Fund will be subject to U.S. federal income tax at the rates applicable to U.S. citizens or domestic corporations, and, if the foreign shareholder is a corporation, the shareholder may be subject to an additional "branch profits tax" imposed at the rate of 30% (or lower applicable treaty rate).

In the case of foreign noncorporate shareholders, the Fund may be required to withhold backup withholding taxes at the applicable rate on distributions that are otherwise exempt from withholding tax (or taxable at a reduced treaty rate) unless such shareholders furnish the Fund with proper notification of their foreign status.

Special rules may apply to a foreign shareholder receiving the Fund distribution if at least 50% of the Fund's assets consist of U.S. real property interests, including certain REITs and U.S. real property holding corporations (as defined in the Code and Treasury

Regulations), at any time during the five-year period ending on the date of the distribution. Fund distributions that are attributable to gain from the disposition of a U.S. real property interest will be taxable as ordinary dividends and subject to withholding at a 30% or lower treaty rate if the foreign shareholder held no more than 5% of the Fund's shares at all times during the one-year period ending on the date of the distribution. If the foreign shareholder held at least 5% of the Fund's shares at any time during the one-year testing period, the distribution would be treated as income effectively connected with a trade or business within the U.S. and the foreign shareholder would be subject to withholding tax at a rate of 21% and would generally be required to file a U.S. federal income tax return. The distribution also may be subject to a 30% branch profits tax if the foreign shareholder is a corporation. Similar consequences would generally apply to a foreign shareholder's gain on the sale of Fund shares unless the Fund is domestically controlled (meaning that more than 50% of the value of the Fund's shares is held by U.S. shareholders at all times during the five-year period ending on the date of sale) or the foreign shareholder owns no more than 5% of the Fund's shares at all times during the five-year period ending on the date of sale. Finally, a domestically controlled Fund may be required to recognize a portion of its gain on the in-kind distribution of certain U.S. real property interests. A foreign shareholder may also be subject to certain "wash sale" rules to prevent the avoidance of the tax filing and payment obligations discussed above through the sale and repurchase of Fund shares. Foreign shareholders are urged to consult their own tax advisors concerning the particular tax consequences to them of an investment in the Fund.

Under the "Foreign Account Tax Compliance Act" and existing guidance thereunder, commonly known as "FATCA," a 30% withholding tax on dividends paid by the Fund generally applies if paid to a foreign entity unless: (i) if the foreign entity is a "foreign financial institution" as defined under FATCA, the foreign entity undertakes certain due diligence, reporting, withholding, and certification obligations, (ii) if the foreign entity is not a "foreign financial institution," it identifies certain of its U.S. investors, or (iii) the foreign entity is otherwise excepted under FATCA. If withholding is required under FATCA on a payment related to any Fund distribution, investors that otherwise would not be subject to withholding (or that otherwise would be entitled to a reduced rate of withholding) on such payment generally will be required to seek a refund or credit from the IRS to obtain the benefit of such exemption or reduction. An intergovernmental agreement between the United States and an applicable foreign country, or future Treasury regulations or other guidance, may modify the foregoing requirements. The Fund will not pay any additional amounts in respect of amounts withheld under FATCA. Each investor should consult its tax adviser regarding the effect of FATCA based on its individual circumstances.

The tax consequences to a foreign shareholder entitled to claim the benefits of an applicable tax treaty might be different from those described herein. Foreign shareholders are urged to consult their own tax advisers with respect to the particular tax consequences to them of an investment in the Fund, including the applicability of foreign taxes.

**Cost Basis Reporting**

The Fund generally is required by law to report to shareholders and the IRS on Form 1099-B "cost basis" information for shares of the Fund acquired on or after January 1, 2012, and sold or redeemed after that date. Upon a disposition of such shares, the Fund will be required to report the adjusted cost basis, the gross proceeds from the disposition, and the character of realized gains or losses attributable to such shares. These requirements do not apply to investments through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement plan. The "cost basis" of a share is generally its purchase price adjusted for dividend reinvestments, returns of capital, and other corporate actions. "Cost basis" is used to determine whether a sale or other disposition of the shares results in a gain or loss.

The Fund will permit shareholders to elect among several IRS-accepted cost basis methods to determine the cost basis in their shares. If a shareholder does not affirmatively elect a cost basis method, then the Fund's default cost basis calculation method, which is currently the average cost method, will be applied to their account. Non-covered shares (those shares purchased before January 1, 2012, and those shares that do not have complete cost basis information, regardless of purchase date) will be used first for any redemptions made after January 1, 2012, regardless of your cost basis method of election unless you have chosen the specific identification method and have designated covered shares (those purchased after January 1, 2012) at the time of your redemption. The cost basis method elected or applied may not be changed after the settlement date of a sale of shares.

If a shareholder holds shares through a broker, the shareholder should contact that broker with respect to the reporting of cost basis information.

Shareholders are urged to consult their tax advisers regarding specific questions with respect to the application of the new cost basis reporting rules and, in particular, which cost basis calculation method to elect.

**Effect of Future Legislation, Foreign, State, and Local Tax Considerations**

The foregoing general discussion of U.S. federal income and excise tax consequences is based on the Code and the Treasury Regulations issued thereunder as in effect on the date of this SAI. Future legislative or administrative changes or court decisions may significantly change the conclusions expressed herein and any such changes or decisions may have a retroactive effect.

Rules of foreign, state, and local taxation of ordinary income dividends, qualified dividends, exempt-interest dividends and capital gain dividends from regulated investment companies may differ from the rules for U.S. federal income taxation described above.

Shareholders are urged to consult their tax advisers as to the consequences of these and other foreign, state and local tax rules affecting an investment in the Fund.

**ADDITIONAL INFORMATION**

**Description of Shares**

The Trust is a Delaware statutory trust. The Trust's Second Amended and Restated Trust Instrument, dated as of February 26, 2019 ("Trust Instrument"), authorizes the Trustees to issue an unlimited number of shares, which are units of beneficial interest, with a par value of $0.001 per share. The Trust Instrument authorizes the Trustees to divide or redivide any unissued shares of the Trust into one or more additional series by setting or changing in any one or more aspects their respective preferences, conversion or other rights, voting power, restrictions, limitations as to dividends, qualifications and terms and conditions of redemption. The Trust is currently authorized to offer Class A, C, I, R, R6, Y, and Member Class shares of the Fund. The Fund may not offer all such share classes. Shares have no subscription or preemptive rights and only such conversion or exchange rights as the Trustees may grant in their discretion. When issued for payment as described in the Prospectus and this SAI, the Trust's shares will be fully paid and non-assessable. In the event of a liquidation or dissolution of the Trust, shares of the Fund are entitled to receive the assets available for distribution belonging to the Fund, and a proportionate distribution, based upon the relative asset values of the respective series, of any general assets not belonging to any particular series that are available for distribution.

Each share class of the Fund represents an interest in the same assets of the Fund, has the same rights and is identical in all material respects except that (i) each class of shares may be subject to different (or no) sales loads; (ii) each class of shares may bear different (or no) distribution fees; (iii) each class of shares may have different shareholder features, such as minimum investment amounts; (iv) certain other class-specific expenses will be borne solely by the class to which such expenses are attributable, including transfer agent fees attributable to a specific class of shares, printing and postage expenses related to preparing and distributing materials to current shareholders of a specific class, registration fees paid by a specific class of shares, the expenses of administrative personnel and services required to support the shareholders of a specific class, litigation or other legal expenses relating to a class of shares, Trustees' fees or expenses paid as a result of issues relating to a specific class of shares and accounting fees and expenses relating to a specific class of shares; and (v) each class has exclusive voting rights with respect to matters relating to its own distribution arrangements. The Board may classify and reclassify the shares of the Fund into additional classes of shares at a future date.

Fund shareholders are entitled to one vote per share (with proportional voting for fractional shares) on such matters as shareholders are entitled to vote ("share-based voting"). Alternatively (except where the 1940 Act requires share-based voting), the Trustees in their discretion may determine that shareholders are entitled to one vote per dollar of NAV (with proportional voting for fractional dollar amounts). Shareholders of all series and classes will vote together as a single class on all matters except (1) when required by the 1940 Act or when the Trustees have determined that a matter affects one or more series or classes materially differently, shares shall be voted by individual series or class; and (2) when the Trustees have determined that the matter affects only the interests of a particular series or class, then only shareholders of such series or class shall be entitled to vote thereon.

There will normally be no meetings of shareholders for the purpose of electing Trustees unless and until such time as less than a majority of the Trustees have been elected by the shareholders, at which time the Trustees then in office will call a shareholders' meeting for the election of Trustees. A meeting shall be held for such purpose upon the written request of the holders of not less than 10% of the outstanding shares. Upon written request by 10 or more shareholders of record meeting the qualifications of Section 16(c) of the 1940 Act, (i.e., persons who have been shareholders of record for at least six months, and who hold shares having an NAV of at least $25,000 or constituting 1% of the outstanding shares, whichever is less) stating that such shareholders wish to communicate with the other shareholders for the purpose of obtaining the signatures necessary to demand a meeting to consider removal of a Trustee, the Trust will provide a list of shareholders or disseminate appropriate materials (at the expense of the requesting shareholders). Except as set forth above, the Trustees shall continue to hold office and may appoint their successors.

The Trust Instrument permits the Trustees to take certain actions without obtaining shareholder approval, if the Trustees determine that doing so would be in the best interests of shareholders. These actions include: (a) reorganizing the Fund with another investment company or another series of the Trust; (b) liquidating the Fund; (c) restructuring the Fund into a "master/feeder" structure, in which the Fund (the "feeder") would invest all of its assets in a separate "master" fund; and (d) amending the Trust Instrument, unless shareholder consent is required by law.

Rule 18f-2 under the 1940 Act provides that any matter required to be submitted to the holders of the outstanding voting securities of an investment company such as the Trust shall not be deemed to have been effectively acted upon unless approved by the holders of a majority of the outstanding shares, as defined under the 1940 Act, of the series affected by the matter. For purposes of determining whether the approval of a majority of the outstanding shares of the Fund will be required in connection with a matter, the Fund will be deemed to be affected by a matter unless it is clear that the interests of the Fund and any other series in the matter are identical, or that the matter does not affect any interest of other series of the Trust. Under Rule 18f-2, the approval of an investment advisory agreement or any change in investment policy would be effectively acted upon with respect to the Fund only if approved by a majority of the outstanding shares of the Fund. However, Rule 18f-2 also provides that the ratification of independent accountants, the approval of principal underwriting contracts, and the election of Trustees may be effectively acted upon by shareholders of the Trust voting without regard to series.

**Shareholder and Trustee Liability**

The Delaware Statutory Trust Act provides that a shareholder of a Delaware statutory trust shall be entitled to the same limitation of personal liability extended to shareholders of Delaware corporations, and the Trust Instrument provides that shareholders of the Trust shall not be liable for the obligations of the Trust. The Trust Instrument also provides for indemnification out of the trust property of any shareholder held personally liable solely by reason of his or her being or having been a shareholder. The Trust Instrument also provides that the Trust shall, upon request, assume the defense of any claim made against any shareholder for any act or obligation of the Trust, and shall satisfy any judgment thereon. Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is considered to be extremely remote.

The Trust Instrument states further that no Trustee, officer, or agent of the Trust shall be personally liable in connection with the administration or preservation of the assets of the Fund or the conduct of the Trust's business; nor shall any Trustee, officer, or agent be personally liable to any person for any action or failure to act except for his own bad faith, willful misfeasance, gross negligence, or reckless disregard of his duties. The Trust Instrument also provides that all persons having any claim against the Trustees or the Trust shall look solely to the assets of the Trust for payment.

**Derivative Actions Brought by Shareholders**

Pursuant to the Trust Instrument, and in addition to the requirements of Delaware law, a shareholder may bring a derivative action on behalf of the Trust only if the following conditions are met: (a) The shareholder or shareholders must make a pre-suit demand upon the Trustees to bring the subject action unless an effort to cause the Trustees to bring such an action is not likely to succeed. For this purpose, a demand on the Trustees shall only be deemed not likely to succeed and therefore excused if a majority of the Board of Trustees, or a majority of any committee established to consider the merits of such action, is composed of Trustees who are not "independent trustees" (as such term is defined in the Delaware Act); (b) Unless a demand is not required under paragraph (a) above, shareholders eligible to bring such derivative action under the Delaware Act who collectively hold at least 10% of the total combined net asset value of the outstanding shares of the Trust, or 10% of the total combined net asset value of the outstanding shares of the Fund or Class to which such action relates if it does not relate to all Funds and Classes, shall join in the request for the Trustees to commence such action; and

(c)Unless a demand is not required under paragraph (a) above, the Trustees must be afforded a reasonable amount of time to consider such shareholder request and to investigate the basis of such claim. The Trustees shall be entitled to retain counsel or other advisors in considering the merits of the request and shall require an undertaking by the shareholders making such request to reimburse the Trust for the expense of any such advisors in the event that the Trustees determine not to bring such action.

The Board may designate a committee of one Trustee to consider a shareholder demand if necessary to create a committee with a majority of Trustees who do not have a personal financial interest in the transaction at issue. In addition to all suits, claims, or other actions (collectively, "claims") that under applicable law must be brought as derivative claims, each shareholder of the Trust or any Fund or Class agrees that any claim that affects all shareholders of the Fund or Class equally, that is, proportionately based on their number of shares in such Fund or Class, must be brought as a derivative claim subject to these provisions irrespective of whether such claim involves a violation of the shareholders' rights under the Trust Instrument or any other alleged violation of contractual or individual rights that might otherwise give rise to a direct claim. The provision requiring at least 10% of the outstanding voting securities of the Trust, applicable Fund or Class to join in the request to bring the derivative action and the provision requiring an undertaking by the requesting shareholders to reimburse the Trust for the expense of any advisors retained by the Board in the event that the Trustees determine not to bring such action, may not apply to claims brought under federal securities laws.

**Jurisdiction and Waiver of Jury Trial**

In accordance with Section 3804(e) of the Delaware Act, the Trust Instrument provides that any suit, action or proceeding brought by or in the right of any shareholder or any person or entity claiming any interest in any Shares seeking to enforce any provision of, or based on any matter arising out of, or in connection with, the Trust Instrument or the Trust, any Fund or class or any shares, including any claim of any nature against the Trust, any Fund or class, the Trustees or officers of the Trust, shall be brought exclusively in the Court of Chancery of the State of Delaware to the extent there is subject matter jurisdiction in such court for the claims asserted or, if not, then in the Superior Court of the State of Delaware, and all shareholders and other such persons or entities hereby irrevocably consent to the jurisdiction of such courts (and the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably waive, to the fullest extent permitted by law, any objection they may make now or hereafter have to the laying of the venue of any such suit, action or proceeding in such court or that any such suit, action or proceeding brought in any such court as been brought in an inconvenient forum and further, in connection with any such suit, action, or proceeding brought in the Superior Court of the State of Delaware, all shareholders and all other such persons or entities hereby irrevocably waive the right to a trial by jury to the fullest extent permitted by law. All shareholders and other such persons and entities agree that service of summons, complaint or other process in connection with any proceedings may be made by registered or certified mail or by overnight courier addressed to such person or entity at the address shown on the books and records of the Trust for such person or entity or at the address of the person or entity shown on the books and records of the Trust with respect to the Shares that such person or entity claims an interest in. Service of process in any such suit, action or proceeding against the Trust or any Trustee or officer of the Trust may be made at the address of the Trust's registered agent in the State of Delaware. Any service so made shall be effective as if personally made in the state of Delaware.

These exclusive jurisdiction provisions may make it more expensive for a shareholder to bring a suit and may limit a shareholder's ability to litigate a claim in the jurisdiction and in a manner that may be more favorable to the shareholder. A court may choose not to enforce this provision of the Trust Instrument. There is a question regarding the enforceability of the exclusive forum provision in the Trust Instrument because the Securities Act of 1933 and the Investment Company Act of 1940 permit shareholders to bring claims arising under such statutes in both state and federal courts.

**Disclosure of Portfolio Holdings**

The Board has adopted policies and procedures with respect to the disclosure of The Fund's portfolio holdings by the Fund, the Adviser, or their affiliates. These policies and procedures provide that The Fund's portfolio holdings information generally may not be disclosed to any party prior to the information becoming public. Certain limited exceptions are described below. These policies and procedures apply to disclosures to all categories of persons, including individual investors, institutional investors, intermediaries who sell shares of the Fund, third parties providing services to the Fund (accounting agent, print vendors, etc.), rating and ranking organizations (Lipper, Morningstar, etc.) and affiliated persons of the Fund.

The Trust's Chief Compliance Officer is responsible for monitoring The Fund's compliance with these policies and procedures, and for providing regular reports (at least annually) to the Board regarding the adequacy and effectiveness of the policy and recommend changes, if necessary.

<u>Public Disclosure</u>

The Fund discloses its complete portfolio holdings in their financial statements and are available upon request on the Fund's website, VictoryFunds.com. The Fund also files its complete portfolio holdings with the SEC for the first and third fiscal quarters on Form N- PORT. You can find these filings on the SEC's website, sec.gov, and the Fund's portfolio holdings are available at VictoryFunds.com in accordance with Rule 30e-3 under the 1940 Act.

In addition, the Fund discloses its complete portfolio holdings as of the quarter-end on the Fund's website no earlier than the 15th day following the end of the calendar quarter. The Fund may also publish other information on the Fund's website relating to its portfolio holdings (e.g., top 10 holdings) on a monthly basis no earlier than the 10th day following the end of the month.

<u>Non-Public Disclosures</u>

The Adviser may authorize the disclosure of non-public portfolio holdings information under certain limited circumstances. The Fund's policies provide that non-public disclosures of the Fund's portfolio holdings may only be made if: (i) the Fund has a "legitimate business purpose" (as determined by the President of the Trust) for making such disclosure; and (ii) the party receiving the non-public information enters into a confidentiality agreement, which includes a duty not to trade on the non-public information and describes any compensation to be paid to the Fund or any "affiliated person" of the Adviser or Distributor, including any arrangement to maintain assets in the Fund or in other investment companies or accounts managed by the Adviser or by any "affiliated person" of the Adviser or Distributor.

The Adviser will consider any actual or potential conflicts of interest between the Adviser and the Fund's shareholders and will act in the best interest of the Fund's shareholders with respect to any such disclosure of portfolio holdings information. If a potential conflict can be resolved in a manner that does not present detrimental effects to Fund shareholders, the Adviser may authorize release of portfolio holdings information. Conversely, if the potential conflict cannot be resolved in a manner that does not present detrimental effects to Fund shareholders, the Adviser will not authorize such release.

<u>Ongoing Arrangements to Disclose Portfolio Holdings</u>

As previously authorized by the Board and/or the Trust's executive officers, the Fund periodically discloses non-public portfolio holdings on a confidential basis to various service providers that require such information in order to assist the Fund in its day-to-day operations, as well as public information to certain ratings organizations. These entities are described in the following table. The table also includes information as to the timing of these entities receiving the portfolio holdings information from the Fund. In none of these arrangements does the Fund or any "affiliated person" of the Adviser or Distributor receive any compensation, including any arrangement to maintain assets in the Fund or in other investment companies or accounts managed by the Adviser or by any "affiliated person" of the Adviser or Distributor.

---

| | | |
|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Timing of Release of** |
| **Type of Service Provider** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Name of Service Provider** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Portfolio Holdings Information** |
| Adviser and Fund Accountant | &nbsp;&nbsp;Victory Capital Management Inc. | &nbsp;&nbsp;&nbsp;&nbsp;Daily. |
| Distributor | &nbsp;&nbsp;Victory Capital Services, Inc. | &nbsp;&nbsp;&nbsp;&nbsp;Daily. |
| Custodian | &nbsp;&nbsp;Citibank, N.A. | &nbsp;&nbsp;&nbsp;&nbsp;Daily. |
| Sub-Fund Accountant | &nbsp;&nbsp;Citi Fund Services Ohio, Inc. | &nbsp;&nbsp;&nbsp;&nbsp;Daily. |
| Financial Data Service | &nbsp;&nbsp;FactSet Research Systems, Inc. | &nbsp;&nbsp;&nbsp;&nbsp;Daily. |

---

![](gqfmw2iv0a85txy9fc0he.jpg)

---

| | | |
|:---|:---|:---|
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Timing of Release of** |
| **Type of Service Provider** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Name of Service Provider** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Portfolio Holdings Information** |
| Liquidity Risk Management Service | MSCI, Inc. | &nbsp;&nbsp;&nbsp;&nbsp;Daily. |
| Provider |  |  |
| Independent Registered Public | Cohen & Company, Ltd. | &nbsp;&nbsp;&nbsp;&nbsp;Annual Reporting Period: within 15 |
| Accounting Firm | Cohen & Company, Ltd. | &nbsp;&nbsp;&nbsp;&nbsp;business days of end of reporting period. |
| Accounting Firm |  | &nbsp;&nbsp;&nbsp;&nbsp;business days of end of reporting period. |
| Printer for Financial Reports | Toppan Merrill LLC | &nbsp;&nbsp;&nbsp;&nbsp;Up to 30 days before distribution to |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;shareholders. |
| Legal Counsel, for EDGAR filings on | Sidley Austin LLP | &nbsp;&nbsp;&nbsp;&nbsp;Up to 30 days before filing with the SEC. |
| Forms N-CSR and Form N-PORT |  |  |
| Ratings Agency | Lipper | &nbsp;&nbsp;&nbsp;&nbsp;Quarterly, no sooner than 15 calendar |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;days after the end of the previous quarter. |
| Ratings Agency | Morningstar | &nbsp;&nbsp;&nbsp;&nbsp;Quarterly, no sooner than 15 calendar |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;days after the end of the previous quarter. |
| Financial Data Service | Bloomberg L.P. | &nbsp;&nbsp;&nbsp;&nbsp;Quarterly, no sooner than 15 calendar |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;days after the end of the previous quarter. |

---

These service providers are required to keep all non-public information confidential and are prohibited from trading based on the information or otherwise using the information, except as necessary in providing services to the Fund.

There is no guarantee that the Fund's policies on use and dissemination of holdings information will protect the Fund from the potential misuse of holdings by individuals or firms in possession of such information.

**Expenses**

Unless agreed upon otherwise with a third party, all expenses incurred in administration of the Fund will be charged to a particular Fund, including investment management fees; fees and expenses of the Board; interest charges; taxes; brokerage commissions; expenses of valuing assets; expenses of continuing registration and qualification of the Fund and the shares under federal and state law; share issuance expenses; fees and disbursements of independent accountants and legal counsel; fees and expenses of custodians, including, transfer agents and shareholder account servicing organizations; expenses of preparing, printing and mailing prospectuses, reports, proxies, notices and statements sent to shareholders; expenses of shareholder meetings; costs of investing in underlying funds; and insurance premiums. The Fund is also liable for nonrecurring expenses, including litigation to which they may from time to time be a party. Expenses incurred for the operation of a particular Fund, including the expenses of communications with its shareholders, are paid by that Fund.

**Legal Counsel**

Sidley Austin LLP, 787 Seventh Avenue, New York, New York 10019, serves as counsel to the Trust.

**Independent Registered Public Accounting Firm**

Cohen & Company, Ltd., located at 1350 Euclid Avenue, Suite 800, Cleveland, OH 44115, serves as the independent registered public accounting firm for the Fund.

**Miscellaneous**

As used in the Prospectuses and in this SAI, "assets belonging to a fund" (or "assets belonging to the Fund") means the consideration received by the Trust upon the issuance or sale of shares of the Fund, together with all income, earnings, profits and proceeds derived from the investment thereof, including any proceeds from the sale, exchange, or liquidation of such investments and any funds or payments derived from any reinvestment of such proceeds and any general assets of the Trust, which general liabilities and expenses are not readily identified as belonging to a particular series that are allocated to that series by the Trustees. The Trustees may allocate such general assets in any manner they deem fair and equitable. It is anticipated that the factor that will be used by the Trustees in making allocations of general assets to a particular series will be the relative NAV of each respective series at the time of allocation. Assets belonging to a particular series are charged with the direct liabilities and expenses in respect of that series and with a share of

the general liabilities and expenses of each of the series not readily identified as belonging to a particular series, which are allocated to each series in accordance with its proportionate share of the NAVs of the Trust at the time of allocation. The timing of allocations of general assets and general liabilities and expenses of the Trust to a particular series will be determined by the Trustees and will be in accordance with generally accepted accounting principles. Determinations by the Trustees as to the timing of the allocation of general liabilities and expenses and as to the timing and allocable portion of any general assets with respect to a particular series are conclusive.

As used in the Prospectuses and in this SAI, a "vote of a majority of the outstanding shares" of the Fund means the affirmative vote of the lesser of (a) 67% or more of the shares of the Fund present at a meeting at which the holders of more than 50% of the outstanding shares of the Fund are represented in person or by proxy, or (b) more than 50% of the outstanding shares of the Fund.

**The Prospectus and this SAI are not an offering of the securities described in these documents in any state in which such offering may not lawfully be made. No salesperson, dealer, or other person is authorized to give any information or make any representation other than those contained in a Prospectus and this SAI.**

**While this SAI and the Prospectus describe pertinent information about the Trust and the Fund, neither this SAI nor any Prospectus represents a contract between the Trust or the Fund and any shareholder.**

34284-00-0526

------

**Registration Statement**

**of**

**VICTORY PORTFOLIOS**

**on**

**Form N-1A**

**PART C. OTHER INFORMATION** 

---

| | | |
|:---|:---|:---|
| **Item 28.**  | **Exhibits** |  |
| (a) | &nbsp;&nbsp; (1)(a) | [<u>Certificate of Trust dated December 6, 1995.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465913075668/a13-21792_1ex99dba1.htm) |
|  | &nbsp;&nbsp; (1)(b) | [<u>Certificate of Amendment dated August 19, 2015, to the Certificate of Trust.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465915073617/a15-21578_1ex99dba1b.htm) |
|  | (2) | [<u>Second Amended and Restated Trust Instrument dated as of February 26, 2019.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465919013442/a19-2998_5ex99da2.htm) |
| (b) |  | [<u>Bylaws, Amended and Restated as of August 26, 2009.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465909068535/a09-33940_1ex99dbb.htm) |
| (c) |  | &nbsp;&nbsp; [<u>The rights of holders of the securities being registered are set out in Articles II, VII, IX and X of the Trust</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465919013442/a19-2998_5ex99da2.htm)<br> [<u>Instrument referenced in Exhibit (a)(2) above</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465919013442/a19-2998_5ex99da2.htm) and [<u>in Article IV of the Bylaws referenced in Exhibit (b)</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465909068535/a09-33940_1ex99dbb.htm)<br> [<u>above.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465909068535/a09-33940_1ex99dbb.htm)<br>|
| (d) | &nbsp;&nbsp; (1)(a) | &nbsp;&nbsp; [<u>Investment Advisory Agreement dated August 1, 2013, between Registrant and Victory Capital Manage-</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465913075668/a13-21792_1ex99dbd1a.htm)<br> [<u>ment Inc. ("Victory Capital" or the "Adviser") for June 30 fiscal year end funds.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465913075668/a13-21792_1ex99dbd1a.htm)<br>|
|  | &nbsp;&nbsp; (1)(b) | [<u>Schedule A to the Advisory Agreement dated August 1, 2013, current as of May 19, 2026. (filed herewith)</u>](f45337d2.htm) |
|  | &nbsp;&nbsp; (2)(a)  | &nbsp;&nbsp; [<u>Investment Advisory Agreement dated as of July 29, 2016, between Registrant and the Adviser for Decem-</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465917027612/a17-11321_1ex99dbd2a.htm)<br> [<u>ber 31 fiscal year end funds.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465917027612/a17-11321_1ex99dbd2a.htm)<br>|
|  | &nbsp;&nbsp; (2)(b) | [<u>Schedule A to the Advisory Agreement dated July 29, 2016, current as of December 4, 2025</u>](https://www.sec.gov/Archives/edgar/data/802716/000119312526191130/f44633d3.htm).  |
|  | &nbsp;&nbsp; (3)(a) | &nbsp;&nbsp; [<u>Investment Sub-Advisory Agreement dated as of June 1, 2021, between the Adviser and</u>](https://www.sec.gov/Archives/edgar/data/802716/000168386321004749/f9501d2.htm)<br> [<u>SailingStoneCapital Partners LLC regarding the Victory Global Energy Transition Fund.</u>](https://www.sec.gov/Archives/edgar/data/802716/000168386321004749/f9501d2.htm)<br>|
| (e) | &nbsp;&nbsp; (1)(a) | &nbsp;&nbsp; [<u>Distribution Agreement dated August 1, 2013, between Registrant and Victory Capital Services, Inc.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465913075668/a13-21792_1ex99dbe1.htm)<br> [<u>("VCS") fka Victory Capital Advisers, Inc.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465913075668/a13-21792_1ex99dbe1.htm)<br>|
|  | &nbsp;&nbsp; (1)(b) | [<u>Amendment dated August 19, 2015, to the Distribution Agreement dated August 1, 2013.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465918073349/a18-41511_1ex99dbe2.htm) |
|  | &nbsp;&nbsp; (1)(c) | &nbsp;&nbsp; [<u>Schedule I to the Distribution Agreement dated August 1, 2013, current as of May 19, 2026. (filed here-</u>](f45337d3.htm)<br> [<u>with)</u>](f45337d3.htm)<br>|
|  | &nbsp;&nbsp; (1)(d) | [<u>Shareholder Services Agreement between VCS. and Victory Transfer Agency Company Inc.</u>](https://www.sec.gov/Archives/edgar/data/802716/000168386325003951/f41497d4.htm) |
| (f) |  | None. |
| (g) | &nbsp;&nbsp; (1)(a) | &nbsp;&nbsp; [<u>Global Custodial Services Agreement between the Registrant and Citibank, N.A. dated as of August 5,</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465908071024/a08-21458_1ex99dbg1c.htm)<br> [<u>2008.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465908071024/a08-21458_1ex99dbg1c.htm)<br>|
|  | &nbsp;&nbsp; (1)(b) | [<u>Amendment and Joinder to the Master Global Custodial Services Agreement dated August 19, 2015</u>](https://www.sec.gov/Archives/edgar/data/1068663/000168386324002520/f38241d4.htm).  |
|  | &nbsp;&nbsp; (1)(c) | [<u>Amendment and Joinder to the Master Global Custodial Services Agreement dated July 15, 2016.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465917012565/a17-3236_1ex99dbg1b.htm) |
|  | &nbsp;&nbsp; (1)(d) | [<u>Amendment and Joinder to the Master Global Custodial Services Agreement dated August 24, 2016.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465917012565/a17-3236_1ex99dbg1c.htm) |
|  | &nbsp;&nbsp; (1)(e) | [<u>Amendment and Joinder to the Master Global Custodial Services Agreement dated February 27, 2017.</u>](http://www.sec.gov/Archives/edgar/data/1547580/000110465917020677/a17-10121_1ex99dbg1e.htm) |
|  | &nbsp;&nbsp; (1)(f) | [<u>Amendment and Joinder to the Master Global Custodial Services Agreement dated March 1, 2019.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465919024636/a19-6871_1ex99dbg1e.htm) |
|  | &nbsp;&nbsp; (1)(g) | [<u>Amendment and Joinder to the Master Global Custodial Services Agreement dated July 1, 2019.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465920026262/a20-6597_1ex99dbg1f.htm) |
|  | &nbsp;&nbsp; (1)(h) | [<u>Amendment and Joinder to the Master Global Custodial Services Agreement dated June 18, 2020.</u>](https://www.sec.gov/Archives/edgar/data/1547580/000110465920101924/a20-29846_1ex99dg1g.htm) |
|  | &nbsp;&nbsp; (1)(i)  | [<u>Amendment and Joinder to the Master Global Custodial Services Agreement, dated December 2, 2020.</u>](https://www.sec.gov/Archives/edgar/data/802716/000168386321001022/f8123d2.htm) |
|  | &nbsp;&nbsp; (1)(j)  | [<u>Amendment and Joinder to the Master Global Custodial Services Agreement, dated January 1, 2021.</u>](https://www.sec.gov/Archives/edgar/data/1547580/000168386321004176/f9242d9.htm) |
|  | &nbsp;&nbsp; (1)(k)  | [<u>Amendment and Joinder to the Master Global Custodial Services Agreement, dated May 18, 2021.</u>](https://www.sec.gov/Archives/edgar/data/1547580/000168386321004176/f9242d10.htm) |
|  | &nbsp;&nbsp; (1)(l) | [<u>Amendment and Joinder to the Master Global Custodial Services Agreement, dated August 30, 2022</u>](https://www.sec.gov/Archives/edgar/data/1547580/000168386322006657/f23350d6.htm). |
|  | &nbsp;&nbsp; (l)(m) | [<u>Amendment to Master Global Custodial Services Agreement dated April 24, 2023</u>](https://www.sec.gov/Archives/edgar/data/802716/000168386323003885/f25126d5.htm). |
|  | &nbsp;&nbsp; (l)(n) | [<u>Amendment to Master Global Custodial Services Agreement dated June 1, 2024</u>](https://www.sec.gov/Archives/edgar/data/802716/000168386324006084/f39339d4.htm).  |
|  | &nbsp;&nbsp; (l)(o) | [<u>Amendment to Master Global Custodial Services Agreement dated October 29, 2024</u>](https://www.sec.gov/Archives/edgar/data/802716/000168386325003951/f41497d5.htm).  |
|  | &nbsp;&nbsp; (1)(p) | [<u>Amendment to Master Global Custodial Services Agreement dated June 4, 2025.</u>](https://www.sec.gov/Archives/edgar/data/802716/000119312525250001/f43130d2.htm) |
| (h) | (1) | [<u>Revised Form of Broker-Dealer Agreement.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465919024636/a19-6871_1ex99dbh1.htm) |
|  | &nbsp;&nbsp; (2)(a) | &nbsp;&nbsp; [<u>Administration and Fund Accounting Agreement dated July 1, 2006, between Registrant and Victory Capi-</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465906082890/a06-25262_1ex99dh1.htm)<br> [<u>tal.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465906082890/a06-25262_1ex99dh1.htm)<br>|
|  | &nbsp;&nbsp; (2)(b) | [<u>Amendment dated July 1, 2009, to the Administration and Fund Accounting Agreement dated July 1, 2006.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465909068535/a09-33940_1ex99dbh3c.htm) |
|  | &nbsp;&nbsp; (2)(c) | &nbsp;&nbsp; [<u>Amendment No. 2 dated July 1, 2012, to the Administration and Fund Accounting Agreement dated July 1,</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465913015010/a12-28699_1ex99dh2c.htm)<br> [<u>2006.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465913015010/a12-28699_1ex99dh2c.htm)<br>|
|  | &nbsp;&nbsp; (2)(d) | &nbsp;&nbsp; [<u>Amendment No. 3 dated May 21, 2015, to the Administration and Fund Accounting Agreement dated</u>](http://www.sec.gov/Archives/edgar/data/1547580/000110465915073665/a15-20537_1ex99dbh3d.htm)<br> [<u>July 1, 2006.</u>](http://www.sec.gov/Archives/edgar/data/1547580/000110465915073665/a15-20537_1ex99dbh3d.htm)<br>|

---

------

---

| | |
|:---|:---|
| &nbsp;&nbsp; (2)(e) | &nbsp;&nbsp; [<u>Amendment No. 4 dated August 19, 2015, to the Administration and Fund Accounting Agreement dated</u>](http://www.sec.gov/Archives/edgar/data/1547580/000110465915073665/a15-20537_1ex99dbh3e.htm)<br> [<u>July 1, 2006.</u>](http://www.sec.gov/Archives/edgar/data/1547580/000110465915073665/a15-20537_1ex99dbh3e.htm)<br>|
| &nbsp;&nbsp; (2)(f) | &nbsp;&nbsp; [<u>Amendment No. 5 dated August 24, 2016, to the Administration and Fund Accounting Agreement dated</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465917012565/a17-3236_1ex99dbh2f.htm)<br> [<u>July 1, 2006.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465917012565/a17-3236_1ex99dbh2f.htm)<br>|
| &nbsp;&nbsp; (2)(g) | &nbsp;&nbsp; [<u>Amendment No. 6 dated February 28, 2018, to the Administration and Fund Accounting Agreement dated</u>](http://www.sec.gov/Archives/edgar/data/1068663/000110465918024484/a18-9196_1ex99dbh1g.htm)<br> [<u>July 1, 2006.</u>](http://www.sec.gov/Archives/edgar/data/1068663/000110465918024484/a18-9196_1ex99dbh1g.htm)<br>|
| &nbsp;&nbsp; (2)(h) | &nbsp;&nbsp; [<u>Amendment No. 7 dated February 27, 2019, to the Administration and Fund Accounting Agreement dated</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465919013442/a19-2998_5ex99dh2e.htm)<br> [<u>July 1, 2006.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465919013442/a19-2998_5ex99dh2e.htm)<br>|
| &nbsp;&nbsp; (2)(i) | &nbsp;&nbsp; [<u>Amendment No. 8 dated June 18, 2020, to the Administration and Fund Accounting Agreement dated</u>](https://www.sec.gov/Archives/edgar/data/1547580/000110465920101924/a20-29846_1ex99dh2g.htm)<br> [<u>July 1, 2006.</u>](https://www.sec.gov/Archives/edgar/data/1547580/000110465920101924/a20-29846_1ex99dh2g.htm)<br>|
| &nbsp;&nbsp; (2)(j) | &nbsp;&nbsp; [<u>Amendment No. 9 dated February 2, 2021, to the Administration and Fund Accounting Agreement dated</u>](https://www.sec.gov/Archives/edgar/data/802716/000168386321001022/f8123d3.htm)<br> [<u>July 1, 2006.</u>](https://www.sec.gov/Archives/edgar/data/802716/000168386321001022/f8123d3.htm)<br>|
| &nbsp;&nbsp; (2)(k) | [<u>Amendment No 10 dated May 18, 2021, to the Administration and Fund Accounting Agreement.</u>](https://www.sec.gov/Archives/edgar/data/1547580/000168386321004176/f9242d12.htm) |
| &nbsp;&nbsp; (2)(l) | &nbsp;&nbsp; [<u>Amendment No. 11 dated November 18, 2021, to the Administration and Fund Accounting Agreement</u>](https://www.sec.gov/Archives/edgar/data/802716/000168386322001045/f10757d6.htm)<br> [<u>dated July 1, 2006.</u>](https://www.sec.gov/Archives/edgar/data/802716/000168386322001045/f10757d6.htm)<br>|
| &nbsp;&nbsp; (2)(m) | &nbsp;&nbsp; [<u>Amendment No. 12 dated May 24, 2022, to the Administration and Fund Accounting Agreement dated</u>](https://www.sec.gov/Archives/edgar/data/1547580/000168386322006657/f23350d7.htm)<br> [<u>July 1, 2006.</u>](https://www.sec.gov/Archives/edgar/data/1547580/000168386322006657/f23350d7.htm)<br>|
| &nbsp;&nbsp; (2)(n) | &nbsp;&nbsp; [<u>Amendment No. 13 dated August 30, 2022, to the Administration and Fund Accounting Agreement dated</u>](https://www.sec.gov/Archives/edgar/data/1547580/000168386322006657/f23350d8.htm)<br> [<u>July 1, 2006.</u>](https://www.sec.gov/Archives/edgar/data/1547580/000168386322006657/f23350d8.htm)<br>|
| &nbsp;&nbsp; (2)(o) | &nbsp;&nbsp; [<u>Amendment No. 14 dated January 1, 2023, to the Administration and Fund Accounting Agreement dated</u>](https://www.sec.gov/Archives/edgar/data/1547580/000168386323003132/f25125d3.htm)<br> [<u>July 1, 2006.</u>](https://www.sec.gov/Archives/edgar/data/1547580/000168386323003132/f25125d3.htm)<br>|
| &nbsp;&nbsp; (2)(p) | &nbsp;&nbsp; [<u>Amendment No. 15 dated May 23, 2023, to the Administration and Fund Accounting Agreement dated</u>](https://www.sec.gov/Archives/edgar/data/1547580/000168386323005083/f25735d5.htm)<br> [<u>July 1, 2006</u>](https://www.sec.gov/Archives/edgar/data/1547580/000168386323005083/f25735d5.htm).<br>|
| &nbsp;&nbsp; (2)(q) | &nbsp;&nbsp; [<u>Amendment No. 16 dated December 5, 2023, to the Administration and Fund Accounting Agreement dated</u>](https://www.sec.gov/Archives/edgar/data/1547580/000168386324002322/f38171d2.htm)<br> [<u>July 1, 2006</u>](https://www.sec.gov/Archives/edgar/data/1547580/000168386324002322/f38171d2.htm).<br>|
| &nbsp;&nbsp; (2)(r) | &nbsp;&nbsp; [<u>Amendment No. 17 dated May 21, 2024, to the Administration and Fund Accounting Agreement dated</u>](https://www.sec.gov/Archives/edgar/data/802716/000168386324006084/f39339d5.htm)<br> [<u>July 1, 2006</u>](https://www.sec.gov/Archives/edgar/data/802716/000168386324006084/f39339d5.htm).<br>|
| &nbsp;&nbsp; (2)(s) | &nbsp;&nbsp; [<u>Amendment No. 18 dated August 27, 2024, to the Administration and Fund Accounting Agreement dated</u>](https://www.sec.gov/Archives/edgar/data/802716/000168386325003951/f41497d6.htm)<br> [<u>July 1, 2006</u>](https://www.sec.gov/Archives/edgar/data/802716/000168386325003951/f41497d6.htm).<br>|
| &nbsp;&nbsp; (2)(t) | &nbsp;&nbsp; [<u>Amendment No. 19 dated October 22, 2024, to the Administration and Fund Accounting Agreement dated</u>](https://www.sec.gov/Archives/edgar/data/802716/000168386325003951/f41497d7.htm)<br> [<u>July 1, 2026</u>](https://www.sec.gov/Archives/edgar/data/802716/000168386325003951/f41497d7.htm).<br>|
| &nbsp;&nbsp; (2)(u) | [<u>Amendment No. 20 dated May 20, 2025, to the Administration and Fund Accounting Agreement.</u>](https://www.sec.gov/Archives/edgar/data/802716/000119312525250001/f43130d3.htm) |
| &nbsp;&nbsp; (2)(v) | [<u>Amendment No. 21 dated August 26, 2025, to the Administration and Fund Accounting Agreement</u>](https://www.sec.gov/Archives/edgar/data/802716/000119312526191130/f44633d5.htm) |
| &nbsp;&nbsp; (2)(w) | &nbsp;&nbsp; [<u>Amendment No. 22 dated May 19, 2026, to the Administration and Fund Accounting Agreement (filed</u>](f45337d4.htm)<br> [<u>herewith)</u>](f45337d4.htm)<br>|
| &nbsp;&nbsp; (3)(a)  | &nbsp;&nbsp; [<u>Sub-Administration and Sub-Fund Accounting Agreement effective October 1, 2025, between Victory Capi-</u>](https://www.sec.gov/Archives/edgar/data/802716/000119312526191130/f44633d6.htm)<br> [<u>tal and Citi Fund Services Ohio, Inc.</u>](https://www.sec.gov/Archives/edgar/data/802716/000119312526191130/f44633d6.htm)<br>|
| &nbsp;&nbsp; (4)(a)  | [<u>Transfer Agency Agreement dated April 1, 2002, between Registrant and BISYS.</u>](http://www.sec.gov/Archives/edgar/data/802716/000092242302001283/kl12014_ex99h3.txt) |
| &nbsp;&nbsp; (4)(b)  | [<u>Supplement dated June 3, 2002, to the Transfer Agency Agreement dated April 1, 2002.</u>](http://www.sec.gov/Archives/edgar/data/802716/000092242302001283/kl12014_ex99h4.txt) |
| &nbsp;&nbsp; (4)(c)  | [<u>Amendment dated July 24, 2002, to the Transfer Agency Agreement dated April 1, 2002.</u>](http://www.sec.gov/Archives/edgar/data/802716/000092242302001283/kl12014_ex99h5.txt) |
| &nbsp;&nbsp; (4)(d)  | [<u>Amendment dated May 18, 2004, to the Transfer Agency Agreement dated April 1, 2002.</u>](http://www.sec.gov/Archives/edgar/data/802716/000092242305002071/kl12066_ex99h.txt) |
| &nbsp;&nbsp; (4)(e) | [<u>Amendment dated July 1, 2006, to the Transfer Agency Agreement dated April 1, 2002.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465906082890/a06-25262_1ex99dh3.htm) |
| &nbsp;&nbsp; (4)(f) | [<u>Amendment dated July 1, 2009, to the Transfer Agency Agreement dated April 1, 2002.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465909068535/a09-33940_1ex99dbh4g.htm) |
| &nbsp;&nbsp; (4)(g) | [<u>Amendment dated August 31, 2011, to the Transfer Agency Agreement dated April 1, 2002.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465911070891/a11-29266_1ex99dh4h.htm) |
| &nbsp;&nbsp; (4)(h) | [<u>Amendment dated July 1, 2012, to the Transfer Agency Agreement dated April 1, 2002.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465913015010/a12-28699_1ex99dh4i.htm) |
| &nbsp;&nbsp; (4)(i) | [<u>Amendment dated October 24, 2012, to the Transfer Agency Agreement dated April 1, 2002.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465912071603/a12-22718_1ex99d102h4i.htm) |
| &nbsp;&nbsp; (4)(j) | [<u>Amendment dated October 23, 2013, to the Transfer Agency Agreement dated April 1, 2002.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465913092003/a13-16301_1ex99dbh4k.htm) |
| &nbsp;&nbsp; (4)(k)  | [<u>Amendment dated February 19, 2014, to the Transfer Agency Agreement dated April 1, 2002.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465914024014/a14-7830_1ex99dbh4l.htm) |
| &nbsp;&nbsp; (4)(l)  | [<u>Amendment dated April 1, 2015, to the Transfer Agency Agreement dated April 1, 2002.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465915033255/a15-4362_15ex99dbh4m.htm) |
| &nbsp;&nbsp; (4)(m) | [<u>Amendment dated August 24, 2016, to the Transfer Agency Agreement dated April 1, 2002.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465916153019/a16-18677_1ex99dbh4n.htm) |
| &nbsp;&nbsp; (4)(n) | [<u>Amendment dated February 26, 2019, to the Transfer Agency Agreement dated April 1, 2002.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465919024636/a19-6871_1ex99dbh4o.htm) |
| &nbsp;&nbsp; (4)(o) | [<u>Amendment dated May 14, 2019, to the Transfer Agency Agreement dated April 1, 2002.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465919056585/a19-19337_1ex99dbh4p.htm) |
| &nbsp;&nbsp; (4)(p) | [<u>Amendment dated February 2, 2021, to the Transfer Agency Agreement dated April 1, 2002.</u>](https://www.sec.gov/Archives/edgar/data/802716/000168386321001022/f8123d5.htm) |
| &nbsp;&nbsp; (4)(q) | [<u>Amendment dated August 24, 2021, to the Transfer Agency Agreement dated April 1, 2002.</u>](https://www.sec.gov/Archives/edgar/data/802716/000168386321006179/f10050d9.htm) |
| &nbsp;&nbsp; (4)(r) | [<u>Amendment dated January 1, 2024, to the Transfer Agency Agreement dated April 1, 2002</u>](https://www.sec.gov/Archives/edgar/data/802716/000168386324003121/f38246d4.htm). |
| &nbsp;&nbsp; (4)(s) | [<u>Data Protection Addendum dated May 30, 2018, to the Transfer Agency Agreement.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465918063690/a18-36347_1ex99dbh4o.htm) |
| &nbsp;&nbsp; (5)(a) | [<u>Expense Limitation Agreement Amended and Restated as of May 1, 2021.</u>](https://www.sec.gov/Archives/edgar/data/802716/000168386321004749/f9501d3.htm) |

---

------

---

| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp; (5)(b)  | &nbsp;&nbsp; [<u>Schedule A to the Expense Limitation Agreement dated May 1, 2021, current as of May 19, 2026. (filed</u>](f45337d5.htm)<br> [<u>herewith)</u>](f45337d5.htm)<br>|
|  | &nbsp;&nbsp; (6)(a) | &nbsp;&nbsp; [<u>Global Securities Lending Agency Agreement effective November 30, 2021, between Registrant and</u>](https://www.sec.gov/Archives/edgar/data/802716/000168386322006874/f23419d5.htm)<br> [<u>CitiBank N.A.</u>](https://www.sec.gov/Archives/edgar/data/802716/000168386322006874/f23419d5.htm)<br>|
|  | &nbsp;&nbsp; (6)(b) | [<u>Amendment No. 1 to Global Securities Lending Agency Agreement as of April 23, 2023</u>](https://www.sec.gov/Archives/edgar/data/1547580/000168386323005083/f25735d10.htm). |
|  | &nbsp;&nbsp; (6)(c) | [<u>Amendment No. 2 to Global Securities Lending Agency Agreement as of June 7, 2024</u>](https://www.sec.gov/Archives/edgar/data/802716/000168386324006084/f39339d10.htm).  |
|  | &nbsp;&nbsp; (6)(d) | [<u>Amendment No. 3 to Global Securities Lending Agency Agreement as of November 1, 2024</u>](https://www.sec.gov/Archives/edgar/data/802716/000168386325003951/f41497d9.htm).  |
|  | &nbsp;&nbsp; (6)(e) | [<u>Amendment No. 4 to Global Securities Lending Agency Agreement as of June 12, 2025</u>](https://www.sec.gov/Archives/edgar/data/802716/000119312525250001/f43130d6.htm).  |
| (i) | &nbsp;&nbsp; (1)(a) | &nbsp;&nbsp; [<u>Opinion of Morris Nichols Arsht & Tunnell LLP dated October 24, 2025, relating to all Funds and Classes</u>](https://www.sec.gov/Archives/edgar/data/802716/000119312525250001/f43130d7.htm)<br> [<u>of Shares with fiscal year ended June 30</u>](https://www.sec.gov/Archives/edgar/data/802716/000119312525250001/f43130d7.htm). <br>|
|  | &nbsp;&nbsp; (1)(b) | &nbsp;&nbsp; [<u>Opinion of Morris Nichols Arsht & Tunnell LLP dated April 25, 2025, relating to all Funds and Classes of</u>](https://www.sec.gov/Archives/edgar/data/802716/000168386325003951/f41497d10.htm)<br> [<u>Shares with fiscal year ended December 31.</u>](https://www.sec.gov/Archives/edgar/data/802716/000168386325003951/f41497d10.htm)<br>|
|  | &nbsp;&nbsp; (1)(c) | &nbsp;&nbsp; [<u>Opinion of Morris Nichols Arshet & Tunnell LLP relating to Victory Trivalent Emerging Markets Small-</u>](f45337d6.htm)<br> [<u>Cap Fund</u>](f45337d6.htm). (filed herewith)<br>|
|  | &nbsp;&nbsp; (2)(a) | Reserved. |
| (j) | &nbsp;&nbsp; (1)(a) | [<u>Consent of Sidley Austin LLP dated October 24, 2025</u>](https://www.sec.gov/Archives/edgar/data/802716/000119312525250001/f43130d8.htm).  |
|  | &nbsp;&nbsp; (1)(b) | [<u>Consent of Sidley Austin LLP dated April 29, 2026.</u>](https://www.sec.gov/Archives/edgar/data/802716/000119312526191130/f44633d8.htm) |
|  | &nbsp;&nbsp; (1)(c) | [<u>Consent of Sidley Austin LLP dated May 22, 2026</u>](f45337d7.htm). (filed herewith) |
|  | &nbsp;&nbsp; (2)(a) | &nbsp;&nbsp; [<u>Consent of Independent Registered Public Accounting Firm with respect to the Victory Portfolios June 30</u>](https://www.sec.gov/Archives/edgar/data/802716/000119312525250001/f43130d9.htm)<br> [<u>fiscal year end funds.</u>](https://www.sec.gov/Archives/edgar/data/802716/000119312525250001/f43130d9.htm)<br>|
|  | &nbsp;&nbsp; (2)(b) | &nbsp;&nbsp; [<u>Consent of Independent Registered Public Accounting Firm with respect to the Victory Portfolios December</u>](https://www.sec.gov/Archives/edgar/data/802716/000119312526191130/f44633d9.htm)<br> [<u>31 fiscal year end funds.</u>](https://www.sec.gov/Archives/edgar/data/802716/000119312526191130/f44633d9.htm)<br>|
| (k) |  | Not applicable. |
| (l) | (1) | Not applicable. |
| (m) | &nbsp;&nbsp; (1)(a) | &nbsp;&nbsp; [<u>Amended and Restated Distribution and Service Plan dated December 11, 1998, as amended and restated</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465913075668/a13-21792_1ex99dbm1a.htm)<br> [<u>February 20, 2013, for Class R Shares.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465913075668/a13-21792_1ex99dbm1a.htm)<br>|
|  | &nbsp;&nbsp; (1)(b) | &nbsp;&nbsp; [<u>Schedule I to the Amended and Restated Distribution and Service Plan for Class R Shares revised as of</u>](f45337d8.htm)<br> [<u>December 4, 2025</u>](f45337d8.htm). (filed herewith)<br>|
|  | &nbsp;&nbsp; (2)(a) | [<u>Distribution and Service Plan dated February 26, 2002, as amended February 5, 2003, for Class C Shares.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465913075668/a13-21792_1ex99dbm2a.htm) |
|  | &nbsp;&nbsp; (2)(b) | &nbsp;&nbsp; [<u>Schedule I to Distribution and Service Plan for Class C Shares, as revised as of December 4, 2025.</u>](f45337d9.htm) (filed <br> herewith) <br>|
|  | &nbsp;&nbsp; (3)(a) | [<u>Distribution and Service Plan dated August 1, 2013, for Class A shares of Registrant.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465913075668/a13-21792_1ex99dbm3a.htm) |
|  | &nbsp;&nbsp; (3)(b) | &nbsp;&nbsp; [<u>Schedule I to the Amended and Restated Distribution and Service Plan for Class A Shares revised as of</u>](f45337d10.htm)<br> [<u>December 4, 2025</u>](f45337d10.htm). (filed herewith)<br>|
| (n) | &nbsp;&nbsp; (1)(a) | [<u>Amended and Restated Rule 18f-3 Multi-Class Plan, amended and restated February 2, 2021.</u>](https://www.sec.gov/Archives/edgar/data/1547580/000168386321004176/f9242d19.htm) |
|  | &nbsp;&nbsp; (1)(b) | &nbsp;&nbsp; [<u>Schedule A to Amended and Restated Rule 18f-3 Multi-Class Plan, current as of May 19, 2026. (filed here-</u>](f45337d11.htm)<br> [<u>with)</u>](f45337d11.htm)<br>|
| (p) | (1)  | [<u>Code of Ethics of Registrant as revised February 28, 2018.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465918028601/a18-9201_1ex99dbp1.htm) |
|  | (2)  | [<u>Code of Ethics for Victory Capital, VCS, and WestEnd Advisors, LLC dated April 1, 2025.</u>](https://www.sec.gov/Archives/edgar/data/802716/000119312525250001/f43130d10.htm) |
|  | (3) | [<u>Code of Ethics of SailingStone Capital Partners LLC dated May 31, 2018.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465918063690/a18-36347_1ex99dbp4.htm) |
|  |  | &nbsp;&nbsp; [<u>Powers of Attorney for David Brooks Adcock, Nigel D.T. Andrews, E. Lee Beard, David C. Brown, John</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465916126923/a16-11050_1ex99.htm)<br> [<u>L. Kelly, and David L. Meyer.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465916126923/a16-11050_1ex99.htm)<br>|
|  |  | [<u>Power of Attorney for Gloria S. Nelund.</u>](http://www.sec.gov/Archives/edgar/data/802716/000110465916153019/a16-18677_1ex99.htm) |
|  |  | [<u>Power of Attorney for Timothy Pettee</u>](https://www.sec.gov/Archives/edgar/data/802716/000168386324003121/f38246d12.htm) |

---

------

**Item 29. Persons Controlled by or Under Common Control with Registrant.**

Information pertaining to persons controlled by, or under common control with Registrant is hereby incorporated by reference to the section captioned "Management of the Trust" in the Statement of Additional Information ("SAI").

**Item 30. Indemnification**

Article X, Section 10.02 of Registrant's Delaware Trust Instrument, incorporated herein as Exhibit (a)(2) hereto, provides for the indemnification of Registrant's Trustees and officers, as follows:

Section 10.02 Indemnification.

&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the exceptions and limitations contained in Subsection 10.02(b):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) every person who is, or has been, a Trustee or officer of the Trust (hereinafter referred to as a "Covered Person") shall be indemnified by the Trust to the fullest extent permitted by law against liability
 and against all expenses reasonably incurred or paid by him in connection with any claim, action, suit or proceeding in
 which he becomes involved as a party or otherwise by virtue of his being or having been a Trustee or officer and
 against amounts paid or incurred by him in the settlement thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the words "claim," "action," "suit," or "proceeding" shall apply to all claims, actions, suits, or proceedings (civil, criminal, or other, including appeals), actual or threatened while in office or thereafter, and the words "liability" and "expenses" shall include, without limitation, attorneys' fees, costs, judgments, amounts paid in settlement, fines, penal- ties, and other liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;(b) No indemnification shall be provided hereunder to a Covered Person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) who shall have been adjudicated by a court or body before which the proceeding was
 brought (A) to be liable to the Trust or its Shareholders by reason of willful misfeasance, bad faith, gross negligence,
 or reckless disregard of the duties involved in the conduct of his office or (B) not to have acted in good faith
 in the reasonable belief that his action was in the best interest of the Trust; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the event of a settlement, unless there has been a determination that such Trustee
 or officer did not engage in willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved
 in the conduct of his office, (A) by the court or other body approving the settlement; (B) by at least a majority of
 those Trustees who are neither inter- ested persons of the Trust nor are parties to the matter based upon a review of readily
 available facts (as opposed to a full trial-type inquiry); or (C) by written opinion of independent legal counsel based
 upon a review of readily available facts (as opposed to a full trial-type inquiry).

&nbsp;&nbsp;&nbsp;&nbsp;(c) The rights of indemnification herein provided may be insured against by policies maintained
 by the Trust, shall be sev- erable, shall not be exclusive of or affect any other rights to which any Covered
 Person may now or hereafter be entitled, shall continue as to a person who has ceased to be a Covered Person and
 shall inure to the benefit of the heirs, executors, and administrators of such a person. Nothing contained herein shall
 affect any rights to indemnifica- tion to which Trust personnel, other than Covered Persons, and other persons may be
 entitled by contract or otherwise under law.

&nbsp;&nbsp;&nbsp;&nbsp;(d) Expenses in connection with the preparation and presentation of a defense to any claim,
 action, suit or proceeding of the character described in Subsection (a) of this Section 10.02 may be paid by the
 Trust or Series from time to time prior to final disposition thereof upon receipt of an undertaking by or on behalf
 of such Covered Person that such amount will be paid over by him to the Trust or Series if it is ultimately determined
 that he is not entitled to indemni- fication under this Section 10.02; provided, however, that either (i) such Covered
 Person shall have provided appropri- ate security for such undertaking, (ii) the Trust is insured against losses arising
 out of any such advance payments or (iii) either a majority of the Trustees who are neither interested persons of the
 Trust nor parties to the matter, or inde- pendent legal counsel in a written opinion, shall have determined, based upon a review
 of readily available facts (as opposed to a trial-type inquiry or full investigation), that there is reason to believe
 that such Covered Person will be found entitled to indemnification under this Section 10.02. The advancement of any
 expenses pursuant to this Sec- tion 10.02(d) shall under no circumstances be considered a "loan" under the Sarbanes-Oxley Act of 2002 or for any other reason.

Indemnification of the Fund's principal underwriter, custodian, fund accountant, and transfer agent is provided for, respectively, in Section V of the Distribution Agreement incorporated by reference as Exhibit (e)(1) hereto, Section 12 of the Global Custodial Services Agreement incorporated by reference as Exhibit (g)(1) hereto, Section 9 of the Administration and Fund Accounting Agreement incorporated by reference as Exhibit (h)(2) hereto and Section 9 of the Transfer Agency Agreement incorporated by reference as Exhibit (h)(4) hereto. Registrant has obtained from a major insurance carrier a trustees' and officers' liability policy covering certain types of errors and omissions. In no event will Registrant indemnify any of its trustees, officers, employees, or agents against any liability to which such person would otherwise be subject by reason of his willful misfeasance, bad faith, or

------

gross negligence in the performance of his duties, or by reason of his reckless disregard of the duties involved in the conduct of his office or under his agreement with Registrant. Registrant will comply with Rule 484 under the Securities Act of 1933 and Release 11330 under the Investment Company Act of 1940 in connection with any indemnification.

Insofar as indemnification for liability arising under the Securities Act of 1933 may be permitted to trustees, officers, and controlling persons of Registrant pursuant to the foregoing provisions, or otherwise, Registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act, as amended, and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by Registrant of expenses incurred or paid by a trustee, officer, or controlling person of Registrant in the successful defense of any action, suit, or proceeding) is asserted by such trustee, officer, or controlling person in connection with the securities being registered, Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question of whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

**Item 31. Business and Other Connections of the Investment Adviser**

Information pertaining to business and other connections of the Registrant's investment adviser, Victory Capital Management Inc. ("VCM" or "Adviser"), is hereby incorporated by reference to the section of the Prospectus captioned "Organization and Management of the Fund" and to the section of the SAI captioned "Investment Adviser and Other Service Providers." The Adviser is an indirect wholly-owned subsidiary of Victory Capital Holdings, Inc. ("VCH"), a publicly traded Delaware corporation.

**The principal executive officers and directors of the Adviser and VCH are as follows:** 

David C. Brown Director, Chairman, and Chief Executive Officer of Adviser and VCH <br> Michael D. Policarpo, II President, Chief Financial Officer, and Chief Administrative Officer of Adviser and VCH, Director of Adviser <br> Nina Gupta Chief Legal Officer and Secretary of Adviser and VCH, Director of Adviser

The business address of the foregoing individuals is 15935 La Cantera Parkway, San Antonio, Texas 78256.

To the knowledge of Registrant, none of the directors or officers of the Adviser is or has been at any time during the past two fiscal years engaged in any other business, profession, vocation, or employment of a substantial nature.

With respect to certain funds of the Registrant, Victory Capital Management Inc., currently engages the following sub-advisers:

(a) SailingStone Capital Partners LLC ("SailingStone"), located at 100 Waugh Drive, Suite 600, Houston, TX 77007, serves as a sub-adviser to the Victory Global Energy Transition Fund. The information required by this Item 31 with respect to each director and officer of SailingStone is incorporated herein by reference to SailingStone's current Form ADV as amended and filed with the SEC.

**Item 32. Principal Underwriter**

(a) Victory Capital Services, Inc. ("VCS") acts as principal underwriter for the shares of Registrant, Victory Portfolios II, Victory Variable Insurance Funds, Victory Portfolios III, Victory Portfolios IV, Victory Pioneer ILS Interval Fund, and Victory Variable Insurance Funds II.

(b) VCS, 4900 Tiedeman Road, 4th Floor, Brooklyn, Ohio 44144, acts solely as distributor for the investment companies listed above. The officers of VCS, all of whose principal business address is set forth above, are:

---

| | | |
|:---|:---|:---|
| Name | Positions and Offices with VCS | Position and Offices with Registrant |
| David C. Brown | Director | Trustee |
| Michael D. Policarpo, II | Director, President | None |
| Charles Mathes | &nbsp;&nbsp; Director, Chief Compliance <br> Officer<br>| None |
| Donald Inks | Chief Operations Officer | None |

---

------

Name Positions and Offices with VCS Position and Offices with Registrant <br> Christopher Ponte Chief Financial Officer Assistant Treasurer

(c) Not applicable.

**Item 33. Location of Accounts and Records**

Victory Capital Management Inc., 15935 La Cantera Parkway, San Antonio, Texas 78256 (records relating to its functions as investment adviser and administrator).

Citibank, N.A., 388 Greenwich St., New York, New York 10013 (records relating to its function as custodian).

Citi Fund Services Ohio, Inc., 4400 Easton Commons, Suite 200, Columbus, Ohio 43219 (records relating to its functions as sub-administrator and sub-fund accountant).

FIS Investor Services LLC, 4249 Easton Way, Suite 400, Columbus, Ohio 43219 (records relating to its functions as transfer agent and dividend disbursing agent).

Victory Capital Services, Inc., 4900 Tiedeman Road, 4th Floor, Brooklyn, Ohio 44144 (records relating to its function as distributor).

SailingStone Capital Partners LLC, 100 Waugh Drive, Suite 600, Houston, TX 77007 (records relating to its function as sub-adviser to the Victory Global Energy Transition Fund).

**Item 34. Management Services**

None.

**Item 35. Undertakings**

Not applicable.

NOTICE

A copy of the Certificate of Trust of Registrant, and all amendments, is on file with the Secretary of State of Delaware and notice is hereby given that this Post-Effective Amendment to Registrant's Registration Statement has been executed on behalf of Registrant by officers of, and Trustees of, Registrant as officers and as Trustees, respectively, and not individually, and that the obligations of or arising out of this instrument are not binding upon any of the Trustees, officers or shareholders of Registrant individually but are binding only upon the assets and property of Registrant.

------

**SIGNATURES**

Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, Registrant certifies that it meets all of the requirements for effectiveness of this registration statement under rule 485(b) under the Securities Act and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the city of San Antonio and state of Texas, on the 22th day of May 2026.

VICTORY PORTFOLIOS

(Registrant)

By:/s/ Thomas Dusenberry

------

Thomas Dusenberry

President

Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed below by the following persons in the capacities indicated on the 22th day of May 2026.

---

| | |
|:---|:---|
| Signature | Title |
| /s/ Thomas Dusenberry<br>Thomas Dusenberry<br>| President (Principal Executive Officer) |
| /s/ Carol D. Trevino<br>Carol D. Trevino<br>| Treasurer (Principal Accounting Officer and Principal Financial Officer) |
| \*<br> David Brooks Adcock<br>| Trustee |
| \*<br> Nigel D.T. Andrews<br>| Trustee |
| \*<br> E. Lee Beard<br>| Trustee |
| \*<br> David C. Brown<br>| Trustee |
| \*<br> John L. Kelly<br>| Chairman of the Board and Trustee |
| \*<br> David L. Meyer<br>| Trustee |
| \*<br> Gloria S. Nelund<br>| Trustee |
| \*<br> Timothy Pettee<br>| Trustee |

---

\*By: /s/ Michael D. Policarpo, II

------

Michael D. Policarpo, II

Attorney-in-Fact

------

## Ex-99.D

![](gswvy92x9a51obvkq8bs5.jpg)

**SCHEDULE A**

**to the**

**INVESTMENT ADVISORY AGREEMENT**

**between**

**VICTORY PORTFOLIOS**

**and**

**VICTORY CAPITAL MANAGEMENT INC.**

**Dated August 1, 2013**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name of Fund | <br>Fee[<sup>\*</sup>](#divb616c8bc-d3d0-48a4-bbb5-84a027dbea67) | &nbsp;&nbsp;&nbsp;&nbsp;Approved By<br>Shareholders | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Last<br>Approved | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Must Be<br>Approved By |
| 1. | &nbsp;&nbsp;Victory Diversified Stock Fund | 0.65% on the first $800 | June 21, 2013 | December 4, | December 31, |
|  |  | million, 0.60% on the next |  | 2025 | 2026 |
|  |  | $1.6 billion, and 0.55% on |  |  |  |
|  |  | assets in excess of $2.4 |  |  |  |
|  |  | billion |  |  |  |
| 2. | &nbsp;&nbsp;Victory Fund for Income | 0.50% on the first $400 | June 7, 2013 | December 4, | December 31, |
|  |  | million, 0.45% on the next |  | 2025 | 2026 |
|  |  | $400 million, and 0.40% on |  |  |  |
|  |  | assets in excess of $800 |  |  |  |
|  |  | million |  |  |  |
| 3. | &nbsp;&nbsp;Victory Investment Grade | 0.75% on the first $400 | May 17, 2013 | December 4, | December 31, |
|  | &nbsp;&nbsp;Convertible Fund | million, 0.65% on the next |  | 2025 | 2026 |
|  |  | $400 million, and 0.60% on |  |  |  |
|  |  | assets in excess of $800 |  |  |  |
|  |  | million |  |  |  |
| 4. | &nbsp;&nbsp;Victory Integrity Discovery Fund |  | October 31, | December 4, | December 31, |
|  |  | 1.00% | 2014 | 2025 | 2026 |
| 5. | &nbsp;&nbsp;Victory Integrity Mid-Cap Value | 0.75% of the first $500 | October 31, | December 4, | December 31, |
|  | &nbsp;&nbsp;Fund | million of average daily net | 2014 | 2025 | 2026 |
|  |  | assets; and 0.70% of |  |  |  |
|  |  | average daily net assets in |  |  |  |
|  |  | excess of $500 million |  |  |  |
| 6. | &nbsp;&nbsp;Victory Integrity Small/Mid-Cap | 0.80% of the first $300 | October 31, | December 4, | December 31, |
|  | &nbsp;&nbsp;Value Fund | million of average daily net | 2014 | 2025 | 2026 |
|  |  | assets; and 0.75% of |  |  |  |
|  |  | average daily net assets in |  |  |  |
|  |  | excess of $300 million |  |  |  |
| 7. | &nbsp;&nbsp;Victory Integrity Small-Cap Value | 0.90% of the first $300 | October 31, | December 4, | December 31, |
|  | &nbsp;&nbsp;Fund | million of average daily net | 2014 | 2025 | 2026 |
|  |  | assets; and 0.85% of |  |  |  |
|  |  | average |  |  |  |

---

\*Expressed as a percentage of average daily net assets. Note, however, that the Adviser shall have the right, but not the obligation, to voluntarily or contractually waive any portion of the advisory fee from time to time. In addition, the Adviser may from time to time undertake in writing to limit the Funds' total expenses for a definite period of time.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name of Fund | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fee\* | &nbsp;&nbsp;&nbsp;&nbsp;Approved By | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Last | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Must be |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name of Fund | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fee\* | Shareholders | Approved | Approved By |
|  |  |  | Shareholders | Approved | Approved By |
| 8. | &nbsp;&nbsp;Victory Mid-Cap Core Growth | 0.75% on the first $6 | October 31, | December 4, | December 31, |
|  | &nbsp;&nbsp;Fund | billion of average daily net | 2014 | 2025 | 2026 |
|  |  | assets, 0.70% on the next |  |  |  |
|  |  | $2 billion, and 0.65% on |  |  |  |
|  |  | average daily net assets |  |  |  |
|  |  | exceeding $8 billion |  |  |  |
| 9. | &nbsp;&nbsp;Victory Multi-Cap Fund | 0.75% of the first $1 billion | October 31, | December 4, | December 31, |
|  |  | of average daily net assets; | 2014 | 2025 | 2026 |
|  |  | 0.72% of the next $1 |  |  |  |
|  |  | billion; and 0.70% of |  |  |  |
|  |  | average daily net assets in |  |  |  |
|  |  | excess of $2 billion |  |  |  |
| 10. | &nbsp;&nbsp;Victory Sycamore Established | 0.65% on the first $100 | June 7, 2013 | December 4, | December 31, |
|  | &nbsp;&nbsp;Value Fund | million, 0.55% on the next |  | 2025 | 2026 |
|  |  | $100 million, and 0.45% on |  |  |  |
|  |  | assets in excess of $200 |  |  |  |
|  |  | million |  |  |  |
| 11. | &nbsp;&nbsp;Victory Sycamore Small Company | 0.85% on the first $500 | May 17, 2013 | December 4, | December 31, |
|  | &nbsp;&nbsp;Opportunity Fund | million, 0.75% on assets in |  | 2025 | 2026 |
|  |  | excess of $500 million |  |  |  |
| 12. | &nbsp;&nbsp;Victory S&P 500 Index Fund | 0.20% of the first $250 | October 31, | December 4, | December 31, |
|  |  | million of average daily net | 2014 | 2025 | 2026 |
|  |  | assets; 0.12% of the next |  |  |  |
|  |  | $250 million; and 0.07% of |  |  |  |
|  |  | average daily net assets in |  |  |  |
|  |  | excess of $500 million |  |  |  |
| 13. | &nbsp;&nbsp;Victory Trivalent International | 0.80% on the first $1 | October 31, | December 4, | December 31, |
|  | &nbsp;&nbsp;Fund – Core Equity | billion of average daily | 2014 | 2025 | 2026 |
|  |  | assets; and 0.75% of the |  |  |  |
|  |  | average daily net assets in |  |  |  |
|  |  | excess of $1 billion |  |  |  |
| 14. | &nbsp;&nbsp;Victory Trivalent International | 0.95% on the first $1 | October 31, | December 4, | December 31, |
|  | &nbsp;&nbsp;Small-Cap Fund | billion of average daily net | 2014 | 2025 | 2026 |
|  |  | assets; and 0.90% of the |  |  |  |
|  |  | average daily net assets in |  |  |  |
|  |  | excess of $1 billion |  |  |  |
| 15. | &nbsp;&nbsp;Victory Trivalent Emerging | 0.99% |  | May 19, 2026 | December 31, |
|  | &nbsp;&nbsp;Markets Small-Cap Fund | 0.99% |  |  | 2027 |
|  | &nbsp;&nbsp;Markets Small-Cap Fund |  |  |  | 2027 |

---

.

Current as of May 19, 2026

\*Expressed as a percentage of average daily net assets. Note, however, that the Adviser shall have the right, but not the obligation, to voluntarily or contractually waive any portion of the advisory fee from time to time. In addition, the Adviser may from time to time undertake in writing to limit the Funds' total expenses for a definite period of time.

VICTORY PORTFOLIOS

By: /S/ THOMAS DUSENBERRY

Name: Thomas Dusenberry

Title: President

Accepted:

VICTORY CAPITAL MANAGEMENT INC.

By: /S/ MICHAEL D. POLICARPO

Name: Michael D. Policarpo II

Title: President, Chief Financial Officer and Chief Administrative

Officer

\*Expressed as a percentage of average daily net assets. Note, however, that the Adviser shall have the right, but not the obligation, to voluntarily or contractually waive any portion of the advisory fee from time to time. In addition, the Adviser may from time to time undertake in writing to limit the Funds' total expenses for a definite period of time.

## Ex-99.E

![](gcynx8ss1rde6tm0kx3em.jpg)

**SCHEDULE I**

**TO THE DISTRIBUTION AGREEMENT**

**between**

**VICTORY PORTFOLIOS**

**and**

**VICTORY CAPITAL SERVICES, INC.**

---

| | | | |
|:---|:---|:---|:---|
|  | Fund Name |  | Fund Name |
| 1 | Victory Diversified Stock Fund | 16 | Victory RS International Fund |
| 2 | Victory Floating Rate Fund | 17 | Victory RS Investors Fund |
| 3 | Victory Global Energy Transition Fund | 18 | Victory RS Large Cap Alpha Fund |
| 4 | Victory High Yield Fund | 19 | Victory RS Mid Cap Growth Fund |
| 5 | Victory Fund for Income | 20 | Victory RS Partners Fund |
| 6 | Victory Investment Grade Convertible Fund | 21 | Victory RS Science and Technology Fund |
| 7 | Victory Low Duration Bond Fund | 22 | Victory RS Select Growth Fund |
| 8 | Victory Integrity Discovery Fund | 23 | Victory RS Small Cap Growth Fund |
| 9 | Victory Integrity Mid-Cap Value Fund | 24 | Victory RS Value Fund |
| 10 | Victory Integrity Small/Mid-Cap Value Fund | 25 | Victory S&P 500 Index Fund |
| 11 | Victory Integrity Small-Cap Value Fund | 26 | Victory Sycamore Established Value Fund |
| 12 | Victory Mid-Cap Core Growth Fund | 27 | Victory Sycamore Small Company Opportunity Fund |
| 13 | Victory Multi-Cap Fund | 28 | Victory Trivalent International Fund-Core Equity |
| 14 | Victory RS Global Fund | 29 | Victory Trivalent International Small-Cap Fund |
| 15 | Victory RS Growth Fund | 30 | Victory Trivalent Emerging Markets Small-Cap Fund |

---

As of May 19, 2026

VICTORY PORTFOLIOS

By:

/S/ THOMAS DUSENBERRY

Name: Thomas Dusenberry

Title: President

VICTORY CAPITAL SERVICES, INC.

By:

/S/ CHRISTOPHER PONTE

Name: Christopher Ponte

Title: Chief Financial Officer

## Ex-99.H

**AMENDMENT No. 22 to**

**ADMINISTRATION**

**AGREEMENT**

**and**

**FUND ACCOUNTING AGREEMENT**

**AMENDMENT** made as of May 19, 2026, to that certain Administration and Fund Accounting Agreement entered into as of June 1, 2006, as amended ("Agreement") by and among (i) Victory Portfolios, and Victory Portfolios II, each a Delaware statutory trust (each, a "Trust" and, together, the "Trusts") on behalf of those investment company portfolios listed on Schedule D which may be amended from time to time (each, a "Fund" and, together, the "Funds") in the case of both the Trusts and the Funds, individually and not jointly and (ii) Victory Capital Management Inc. ("VCM"), a New York corporation. All capitalized terms used but not defined herein shall have the meanings given to them in the Agreement

**WHEREAS**, VCM and the Trusts wish to enter into this Amendment to the Agreement to

(1) update Schedule D to revise the list of Funds.

**NOW, THEREFORE**, in consideration of the mutual covenants and promises hereinafter contained and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, intending to be legally bound, VCM and the Trusts hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.For ease of reference, the term "Trust" as used singularly throughout the Agreement shall be read to refer to the multiple Trusts that are party to the Agreement from time to time, as the context requires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Schedule D to the Agreement is deleted in its entirety and replaced by the new Schedule D attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Except as set forth in this Amendment, the Agreement is unaffected and shall continue in full force and effect in accordance with its terms.

**IN WITNESS WHEREOF**, the parties hereto have caused this Amendment to be duly executed all as of the day and year first above written.

![](gwuji0fsa5k017xseoaiq.jpg)

**VICTORY PORTFOLIOS, on behalf of each Fund listed on Schedule D, individually and not jointly**

By: /S/THOMAS DUSENBERRY

Name: Thomas Dusenberry

Title: President

**VICTORY PORTFOLIOS II, on behalf of each Fund listed on Schedule D, individually and not jointly**

By: /S/THOMAS DUSENBERRY

Name: Thomas Dusenberry

Title: President

**VICTORY CAPITAL MANAGEMENT INC.**

By: /S/ MICHAEL D. POLICARPO

Name: Michael D. Policarpo

Title: <u>President, Chief Financial Officer and</u>

Chief Administrative Officer

**<u>SCHEDULE D</u>**

**TO THE ADMINISTRATION AND FUND ACCOUNTING AGREEMENT BETWEEN VCM, VICTORY PORTFOLIOS AND VICTORY PORTFOLIOS II**

<u>Victory Portfolios</u>

Victory Diversified Stock Fund

Victory Floating Rate Fund

Victory Global Energy Transition Fund

Victory High Yield Fund

Victory Fund for Income

Victory Investment Grade Convertible Fund

Victory Low Duration Bond Fund

Victory Integrity Discovery Fund

Victory Integrity Mid-Cap Value Fund

Victory Integrity Small/Mid-Cap Value Fund

Victory Integrity Small-Cap Value Fund

Victory Mid-Cap Core Growth Fund

Victory Multi-Cap Fund

Victory RS Global Fund

Victory RS Growth Fund

Victory RS International Fund

Victory RS Investors Fund

Victory RS Large Cap Alpha Fund

Victory RS Mid Cap Growth Fund

Victory RS Partners Fund

Victory RS Science and Technology Fund

Victory RS Select Growth Fund

Victory RS Small Cap Growth Fund

Victory RS Value Fund

Victory S&P 500 Index Fund

Victory Sycamore Established Value Fund

Victory Sycamore Small Company Opportunity Fund

Victory Trivalent International Fund- Core Equity

Victory Trivalent International Small-Cap Fund

Victory Trivalent Emerging Markets Small-Cap Fund\*

<u>Victory Portfolios II Mutual Funds</u>

Victory Market Neutral Income Fund

<u>Victory Portfolios II ETFs</u> VictoryShares Dividend Accelerator ETF VictoryShares Core Intermediate Bond ETF VictoryShares Short-Term Bond ETF

VictoryShares Emerging Markets Value Momentum ETF VictoryShares International Value Momentum ETF VictoryShares US Small Mid Cap Value Momentum ETF VictoryShares US Value Momentum ETF VictoryShares US 500 Enhanced Volatility Wtd ETF VictoryShares US 500 Volatility Wtd ETF VictoryShares US EQ Income Enhanced Volatility Wtd ETF VictoryShares US Large Cap High Div Volatility Wtd ETF VictoryShares US Multi-Factor Minimum Volatility ETF VictoryShares US Small Cap High Div Volatility Wtd ETF VictoryShares Core Plus Bond ETF

VictoryShares Corporate Bond ETF VictoryShares WestEnd U.S. Sector ETF VictoryShares Free Cash Flow ETF VictoryShares Small Cap Free Cash Flow ETF VictoryShares WestEnd Global Equity ETF VictoryShares WestEnd Dynamic Equity ETF\* VictoryShares Free Cash Flow ETF VictoryShares International Free Cash Flow ETF VictoryShares International Free Cash Flow Growth ETF VictoryShares Pioneer Asset-Based Income ETF VictoryShares Pioneer Equity Premium Income ETF\* VictoryShares Pioneer Active Credit ETF\* VictoryShares Pioneer Mortgage-Backed Securities ETF\* VictoryShares Short-Duration Municipal ETF\* VictoryShares Municipal High Yield ETF\*

\* Pending Launch - TBD

## Ex-99.H

![](gx50qtpkr1qcn74dauub6.jpg)

**SCHEDULE A**

**TO THE EXPENSE LIMITATION AGREEMENT DATED MAY 1, 2021**

**BETWEEN**

**VICTORY PORTFOLIOS AND VICTORY CAPITAL MANAGEMENT INC.**

**OPERATING EXPENSE LIMITS AS OF MAY 19, 2026**

---

| | | | |
|:---|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;**Maximum** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Fund/Class** | &nbsp;&nbsp;&nbsp;**Operating** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Date of** | &nbsp;&nbsp;**Effective Date** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**June 30 FYE Funds** | **Expense Limit** | &nbsp;&nbsp;&nbsp;**Termination** | &nbsp;&nbsp;&nbsp;&nbsp;**of Waiver** |
| &nbsp;&nbsp;Victory Diversified Stock – Class C | 2.02% | 31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Victory Diversified Stock – Class I | 0.83% | 31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Victory Diversified Stock – Class R6 | 0.78% | 31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Victory Diversified Stock – Class Y | 0.86% | 31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Victory Fund for Income – Class A | 0.91% | 31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Victory Fund for Income – Class C | 1.71% | 31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Victory Fund for Income – Class I | 0.64% | 31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Victory Fund for Income – Class R | 0.91% | 31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Victory Fund for Income – Class R6 | 0.63% | 31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Victory Fund for Income – Class Y | 0.71% | 31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Victory Fund for Income – Member Class | 0.75% | 31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Victory Investment Grade Convertible – Class A | 1.39% | 31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Victory Investment Grade Convertible – Member | 1.10% | 31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Class |  |  |  |
| &nbsp;&nbsp;Victory Integrity Discovery Fund – Class A | 1.66% | 31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Victory Integrity Discovery Fund – Class C | 2.45% | 31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Victory Integrity Discovery Fund – Class Y | 1.44% | 31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Victory Integrity Discovery Fund – Member Class | 1.50% | 31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Victory Integrity Mid-Cap Value Fund – Class R6 | 0.60% | 31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Victory Integrity Mid-Cap Value Fund – Class A | 1.00% | 31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Victory Integrity Mid-Cap Value Fund – Class C | 1.75% | 31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Victory Integrity Mid-Cap Value Fund – Class Y | 0.75% | 31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Victory Integrity Mid-Cap Value Fund – Member Class | 0.85% | 31-Oct-26 | 1-Nov-25 |

---

---

| | | | |
|:---|:---|:---|:---|
| <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Fund/Class**<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**June 30 FYE Funds** | &nbsp;&nbsp;**Maximum**<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Operating**<br>&nbsp;&nbsp;&nbsp;&nbsp;**Expense Limit** | <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Date of**<br>&nbsp;&nbsp;**Termination** | <br>&nbsp;&nbsp;&nbsp;**Effective Date**<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**of Waiver** |
| &nbsp;&nbsp;Victory Integrity Small/Mid-Cap Value Fund – Class | 1.13% | 31-Oct-25 | 1-Nov-25 |
| &nbsp;&nbsp;A |  |  |  |
| &nbsp;&nbsp;Victory Integrity Small/Mid-Cap Value Fund – Class | 0.83% | 31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;R6 |  |  |  |
| &nbsp;&nbsp;Victory Integrity Small/Mid-Cap Value Fund – Class | 0.88% | 31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Y |  |  |  |

---

(Maximum Operating Expense Limit excluding acquired fund fees and expenses and certain other items such as interest, taxes and brokerage commissions)

---

| | | | |
|:---|:---|:---|:---|
| | **Maximum** | | |
| | **Maximum** | | |
| | &nbsp;&nbsp;&nbsp;&nbsp;**Operating** | | |
| <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Fund/Class**<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**June 30 FYE Funds** | **Expense Limit** | <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Date of**<br>&nbsp;&nbsp;&nbsp;&nbsp;**Termination** | <br>&nbsp;&nbsp;&nbsp;**Effective Date**<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**of Waiver** |
| &nbsp;&nbsp;Victory Integrity Small/Mid-Cap Value Fund – | 0.95% | &nbsp;&nbsp;31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Member Class |  |  |  |
| &nbsp;&nbsp;Victory Integrity Small-Cap Value Fund – Class A | 1.50% | &nbsp;&nbsp;31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Victory Integrity Small-Cap Value Fund – Class C | 2.35% | &nbsp;&nbsp;31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Victory Integrity Small-Cap Value Fund – Class R | 1.75% | &nbsp;&nbsp;31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Victory Mid-Cap Core Growth Fund – Class A | 1.32% | &nbsp;&nbsp;31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Victory Mid-Cap Core Growth Fund – Class C | 2.12% | &nbsp;&nbsp;31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Victory Multi-Cap Fund – Class C | 2.16% | &nbsp;&nbsp;31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Victory Sycamore Established Value – Class C | 1.84% | &nbsp;&nbsp;31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Victory Sycamore Small Company Opportunity – | 1.15% | &nbsp;&nbsp;31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Class Y |  |  |  |
| &nbsp;&nbsp;Victory Trivalent International Fund—Core Equity – | 0.95% | &nbsp;&nbsp;31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Class A |  |  |  |
| &nbsp;&nbsp;Victory Trivalent International Fund—Core Equity – | 0.60% | &nbsp;&nbsp;31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Class I |  |  |  |
| &nbsp;&nbsp;Victory Trivalent International Fund—Core Equity – | 0.55% | &nbsp;&nbsp;31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Class R6 |  |  |  |
| &nbsp;&nbsp;Victory Trivalent International Fund—Core Equity – | 0.70% | &nbsp;&nbsp;31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Class Y |  |  |  |
| &nbsp;&nbsp;Victory Trivalent International Small-Cap Fund – | 1.35% | &nbsp;&nbsp;31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Class A |  |  |  |
| &nbsp;&nbsp;Victory Trivalent International Small-Cap Fund – | 2.10% | &nbsp;&nbsp;31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Class C |  |  |  |
| &nbsp;&nbsp;Victory Trivalent International Small-Cap Fund – | 0.97% | &nbsp;&nbsp;31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Class I |  |  |  |
| &nbsp;&nbsp;Victory Trivalent International Small-Cap Fund – | 1.10% | &nbsp;&nbsp;31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Class R6 |  |  |  |
| &nbsp;&nbsp;Victory Trivalent International Small-Cap Fund – | 1.10% | &nbsp;&nbsp;31-Oct-26 | 1-Nov-25 |
| &nbsp;&nbsp;Class Y |  |  |  |
| &nbsp;&nbsp;Victory Trivalent Emerging Markets Small-Cap Fund | 1.10% | &nbsp;&nbsp;31-Oct-27 | 19-May-26 |
| &nbsp;&nbsp;– Class Y |  |  |  |

---

---

| | | | |
|:---|:---|:---|:---|
| | **Maximum** | | |
| | **Maximum** | | |
| | &nbsp;&nbsp;&nbsp;&nbsp;**Operating** | | |
| <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Fund/Class**<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31 FYE Funds** | **Expense Limit** | <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Date of**<br>&nbsp;&nbsp;&nbsp;&nbsp;**Termination** | <br>&nbsp;&nbsp;&nbsp;**Effective Date**<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**of Waiver** |
| &nbsp;&nbsp;Victory Floating Rate Fund – Class A | 1.00% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory Floating Rate Fund – Class C | 1.80% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory Floating Rate Fund – Class Y | 0.78% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory Floating Rate Fund – Member Class | 0.85% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory Global Energy Transition Fund – Class A | 1.48% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |

---

(Maximum Operating Expense Limit excluding acquired fund fees and expenses and certain other items such as interest, taxes and brokerage commissions)

---

| | | | |
|:---|:---|:---|:---|
| | **Maximum** | | |
| | **Maximum** | | |
| | &nbsp;&nbsp;&nbsp;&nbsp;**Operating** | | |
| <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Fund/Class**<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31 FYE Funds** | **Expense Limit** | <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Date of**<br>&nbsp;&nbsp;&nbsp;&nbsp;**Termination** | <br>&nbsp;&nbsp;&nbsp;**Effective Date**<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**of Waiver** |
| &nbsp;&nbsp;Victory Global Energy Transition Fund – Class C | 2.28% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory Global Energy Transition Fund – Class Y | 1.15% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory High Yield Fund – Class A | 1.00% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory High Yield Fund – Class C | 1.70% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory High Yield Fund – Class R | 1.35% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory High Yield Fund – Class Y | 0.76% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory Low Duration Bond Fund – Class A | 0.85% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory Low Duration Bond Fund – Class C | 1.62% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory Low Duration Bond Fund – Class Y | 0.62% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS Global Fund – Class A | 0.85% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS Global Fund – Class C | 1.60% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS Global Fund – Class R | 1.10% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS Global Fund – Class Y | 0.60% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS Global Fund – Class R6 | 0.55% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS Growth Fund – Class A | 1.10% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS Growth Fund – Class C | 1.93% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS Growth Fund – Class Y | 0.83% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS International Fund – Class A | 1.13% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS International Fund – Class C | 1.88% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS International Fund – Class R | 1.38% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS International Fund – Class Y | 0.88% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS International Fund – Class R6 | 0.83% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS Investors Fund – Class A | 1.33% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS Investors Fund – Class C | 2.07% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS Investors Fund – Class Y | 1.05% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS Large Cap Alpha Fund – Class A | 0.89% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS Large Cap Alpha Fund – Class C | 1.69% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS Large Cap Alpha Fund – Class Y | 0.68% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS Mid Cap Growth Fund – Class A | 1.20% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS Mid Cap Growth Fund – Class C | 2.11% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS Mid Cap Growth Fund – Class Y | 0.95% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS Mid Cap Growth Fund – Class R6 | 0.94% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS Mid Cap Growth Fund – Member Class | 1.05% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS Partners Fund – Class A | 1.33% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS Partners Fund – Class R | 1.69% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS Partners Fund – Class Y | 0.94% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS Partners Fund – Class R6 | 0.89% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS Partners Fund – Member Class | 1.13% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS Science and Technology Fund – Class A | 1.49% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS Science and Technology Fund – Class C | 2.28% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS Science and Technology Fund – Class Y | 1.24% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS Select Growth Fund – Class A | 1.40% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |

---

(Maximum Operating Expense Limit excluding acquired fund fees and expenses and certain other items such as interest, taxes and brokerage commissions)

---

| | | | |
|:---|:---|:---|:---|
| | **Maximum** | | |
| | **Maximum** | | |
| | &nbsp;&nbsp;&nbsp;&nbsp;**Operating** | | |
| <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Fund/Class**<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31 FYE Funds** | **Expense Limit** | <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Date of**<br>&nbsp;&nbsp;&nbsp;&nbsp;**Termination** | <br>&nbsp;&nbsp;&nbsp;**Effective Date**<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**of Waiver** |
| &nbsp;&nbsp;Victory RS Select Growth Fund – Class C | 2.18% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS Select Growth Fund – Class Y | 1.14% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS Select Growth Fund – Class R6 | 1.06% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS Small Cap Growth Fund – Class A | 1.40% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS Small Cap Growth Fund – Class C | 2.16% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS Small Cap Growth Fund – Class Y | 1.13% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS Small Cap Growth Fund – Class R6 | 1.06% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS Value Fund – Class A | 1.30% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS Value Fund – Class C | 2.07% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |
| &nbsp;&nbsp;Victory RS Value Fund – Class Y | 1.06% | &nbsp;&nbsp;30-Apr-27 | 01-May-26 |

---

(Maximum Operating Expense Limit excluding acquired fund fees and expenses and certain other items such as interest, taxes and brokerage commissions)

## Ex-99.I

![](g6x0talf1sxolth1jbwt4.jpg)

**M O R R I S , N I C H O L S , A R S H T & T U N N E L L L L P**

1201 NORTH MARKET STREET

P.O. BOX 1347

WILMINGTON , DELAWARE 19899 -1347

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(302)658-9200

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(302)658-3989 FAX

May 22, 2026

Victory Portfolios

4900 Tiedeman Road

Brooklyn, Ohio 44144

Re: <u>Victory Portfolios</u>

Ladies and Gentlemen:

We have acted as special Delaware counsel to Victory Portfolios, a Delaware statutory trust (the "Trust"), in connection with certain matters of Delaware law set forth below relating to the Trust and the Series thereof identified under the heading "Series" on <u>Exhibit A</u> hereto (each, a "Fund" and collectively, the "Funds"), including the issuance of Shares of each of the Classes identified under the heading "Classes" on <u>Exhibit A</u> hereto of the Fund appearing opposite the name of such Class (each, a "Class" and collectively, the "Classes" and such Shares, the "Registered Shares"). Capitalized terms used herein and not otherwise herein defined are used as defined in the Second Amended and Restated Trust Instrument of the Trust dated as of February 26, 2019 (the "Governing Instrument").

In rendering this opinion, we have examined and relied on copies of the following documents, each in the form provided to us: Post-Effective Amendment No. 209 to Registration Statement No. 033-08982 under the Securities Act of 1933 and No. 210 to Registration Statement No. 811-04852 under the Investment Company Act of 1940 on Form N-1A of the Trust to be filed with the Securities and Exchange Commission (the "Commission") on or about the date hereof (the "Registration Statement"); the Certificate of Trust of the Trust as filed in the Office of the Secretary of State of the State of Delaware (the "State Office") on December 21, 1995 (under the name The Victory Portfolios), as amended by the Certificate of Amendment thereto as filed in the State Office on September 16, 2015 (reflecting a change in its name to Victory Portfolios) (as so amended, the "Certificate"); the Governing Instrument; the Amended and Restated Trust Instrument of the Trust dated as of March 27, 2000, as amended by the Amendment thereto dated as of August 19, 2015 (as so amended, the "A/R Governing Instrument"); the Trust Instrument of the Trust dated as of December 6, 1995, as amended February 19, 1997 and October 23, 1997 (as amended, the "Original Governing Instrument"); the Amended and Restated Bylaws of the Trust dated August 26, 2009 (the "Bylaws"); certain resolutions of the Trustees of the Trust including resolutions dated December 6, 1995 and resolutions adopted by the Board of Trustees of the Trust at meetings held on August 19, 2015 and February 24, 2026 (collectively, the "Resolutions" and the Resolutions together with the Registration Statement, the Governing Instrument and the Bylaws, the "Governing Documents"); and a certification of good standing of the Trust obtained as of a recent date from the State Office. In such examinations, we have assumed the genuineness

Victory Portfolios

May 22, 2026

of all signatures, the conformity to original documents of all documents submitted to us as copies or drafts of documents to be executed, and the legal capacity of natural persons to complete the execution of documents. We have further assumed for purposes of this opinion: (i) the due adoption, authorization, execution and delivery, as applicable, by or on behalf of each of the parties thereto of the above-referenced agreements, instruments, certificates and other documents (including the Resolutions), and of all documents contemplated by the Governing Documents to be executed by investors desiring to become Shareholders; (ii) the payment of consideration for Shares, and the application of such consideration, as provided in the Governing Documents and compliance with all other terms, conditions and restrictions set forth in the Governing Documents in connection with the issuance of Shares; (iii) that appropriate notation of the names and addresses of, the number of Shares held by, and the consideration paid by, Shareholders will be maintained in the appropriate registers and other books and records of the Trust in connection with the issuance or transfer of Shares; (iv) that no event has occurred that would cause a termination or dissolution of the Trust under Sections 11.04 or 11.05 of the Original Governing Instrument, the A/R Governing Instrument, or the Governing Instrument, as applicable; (v) that no event has occurred that would cause a termination or dissolution of any Fund or any Class thereof under Sections 2.06 or 11.04 of the Original Governing Instrument, the A/R Governing Instrument, or the Governing Instrument, as applicable; (vi) that the activities of the Trust have been and will be conducted in accordance with the terms of the Governing Instrument and the Delaware Statutory Trust Act, 12 <u>Del. C.</u> §§ 3801 <u>et seq.</u>; (vii) that the Registered Shares constitute the Shares covered by the Registration Statement; and (viii) that each of the documents examined by us is in full force and effect and has not been amended, supplemented or otherwise modified, except as herein referenced. No opinion is expressed herein with respect to the requirements of, or compliance with, federal or state securities or blue sky laws. Further, we express no opinion on the sufficiency or accuracy of any registration or offering documentation relating to the Trust or the Shares. As to any facts material to our opinion, other than those assumed, we have relied without independent investigation on the above-referenced documents and on the accuracy, as of the date hereof, of the matters therein contained.

Based on and subject to the foregoing, and limited in all respects to matters of Delaware law, it is our opinion that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The Trust is a duly formed and validly existing statutory trust in good standing under the laws of the State of Delaware. Each Fund is a validly existing Series of the Trust and each Class thereof is a validly existing Class of such Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The Registered Shares of each Class of each Fund, when issued to Shareholders in accordance with the terms, conditions, requirements and procedures set forth in the Governing Documents and all applicable resolutions of the Trustees, will be validly issued, fully paid and non-assessable Shares of beneficial interest in the Trust.

With respect to our opinion in paragraph 2 above, we note that under Article V of the Governing Instrument, the Trustees shall have the power to cause each Shareholder, or each Shareholder of any particular Series or Class (as defined in the Governing Instrument), to pay directly, in advance or arrears, expenses of the Trust as described in Article V of the Governing Instrument ("Expenses"), in an amount fixed from time to time by the Trustees, by setting off such Expenses due from such Shareholder from declared but unpaid dividends owed such Shareholder

Victory Portfolios

May 22, 2026

and/or by reducing the number of Shares in the account of such Shareholder by that number of full and/or fractional Shares which represents the outstanding amount of such Expenses due from such Shareholder, provided that the direct payment of such Expenses by Shareholders is permitted under applicable law.

We hereby consent to the filing of a copy of this opinion with the Commission as an exhibit to a post-effective amendment to the Trust's Registration Statement. In giving this consent, we do not thereby admit that we come within the category of persons whose consent is required under Section 7 of the Securities Act of 1933, as amended, or the rules and regulations of the Commission thereunder. This opinion speaks only as of the date hereof and is based on our understandings and assumptions as to present facts, and on the application of Delaware law as the same exist on the date hereof, and we undertake no obligation to update or supplement this opinion after the date hereof for the benefit of any person or entity (including any Shareholder) with respect to any facts or circumstances that may hereafter come to our attention or any changes in facts or law that may hereafter occur or take effect. This opinion is intended solely for the benefit of the Trust and the Shareholders in connection with the matters contemplated hereby and may not be relied upon by any other person or entity, or for any other purpose, without our prior written consent.

Sincerely,

MORRIS, NICHOLS, ARSHT & TUNNELL LLP

/s/ Sara A. Gelsinger

Sara A. Gelsinger

**<u>Exhibit A</u>**

to Morris, Nichols, Arsht & Tunnell LLP Opinion

relating to Victory Portfolios

Dated May 22, 2026

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Series** | &nbsp;&nbsp;**Classes** |
| &nbsp;&nbsp;Victory Trivalent Emerging Markets Small-Cap Fund | &nbsp;&nbsp;Y |

---

## Ex-99.J

![](gfwzvbunxsvmyqwe2jgro.jpg)

SIDLEY AUSTIN LLP 787 SEVENTH AVENUE NEW YORK, NY 10019 +1 212 839 5300

+1 212 839 5599 FAX

AMERICA • ASIA PACIFIC • EUROPE

**VIA EDGAR**

May 22, 2026

Victory Portfolios

15935 La Cantera Parkway

San Antonio, Texas 78256

<u>Post-Effective Amendment No. 209 – File Nos.: 033-08982; 811-04852</u>

Ladies and Gentlemen:

We hereby consent to the reference to our firm as counsel in Post-Effective Amendment No. 209 to the Registration Statement on Form N-1A of Victory Portfolios (File No. 033-08982; 811-04852).

Very truly yours,

/s/ Sidley Austin LLP

**Sidley Austin LLP**

Sidley Austin (NY) LLP is a Delaware limited liability partnership doing business as Sidley Austin LLP and practicing in affiliation with other Sidley Austin partnerships.

## Ex-99.N

**SCHEDULE A**

**to the**

**Rule 18f-3 Multi-Class Plan**

**for the**

**VICTORY PORTFOLIOS**

**VICTORY PORTFOLIOS II**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | <br>Fund Name | <br>Class A | <br>Class R | <br>Class C | Member<br>Class | <br>Class Y | <br>Class I | <br>Class R6 |
| 1 | Victory Diversified Stock Fund | **1** | **1** | **1** |  | **1** | **1** | **1** |
| 2 | Victory Floating Rate Fund | **1** |  | **1** | **1** | **1** |  |  |
| 3 | Victory Global Energy Transition Fund | **1** |  | **1** |  | **1** |  |  |
| 4 | Victory High Yield Fund | **1** | **1** | **1** |  | **1** |  |  |
| 5 | Victory Fund for Income | **1** | **1** | **1** | **1** | **1** | **1** | **1** |
| 6 | Victory Investment Grade Convertible Fund | **1** |  |  | **1** |  | **1** |  |
| 7 | Victory Low Duration Bond Fund | **1** |  | **1** |  | **1** |  |  |
| 8 | Victory Integrity Discovery Fund | **1** |  | **1** | **1** | **1** |  |  |
| 9 | Victory Integrity Mid-Cap Value Fund | **1** |  | **1** | **1** | **1** |  | **1** |
| 10 | Victory Integrity Small/Mid-Cap Value Fund | **1** |  |  | **1** | **1** |  | **1** |
| 11 | Victory Integrity Small-Cap Value Fund | **1** | **1** | **1** |  | **1** |  | **1** |
| 12 | Victory Market Neutral Income Fund | **1** |  | **1** | **1** |  | **1** |  |
| 13 | Victory Mid-Cap Core Growth Fund | **1** |  | **1** |  | **1** |  | **1** |
| 14 | Victory Multi-Cap Fund | **1** |  | **1** |  | **1** |  |  |
| 15 | Victory RS Global Fund | **1** | **1** | **1** |  | **1** |  | **1** |
| 16 | Victory RS Growth Fund | **1** |  | **1** |  | **1** |  |  |
| 17 | Victory RS International Fund | **1** | **1** | **1** |  | **1** |  | **1** |
| 18 | Victory RS Investors Fund | **1** |  | **1** |  | **1** |  |  |
| 19 | Victory RS Large Cap Alpha Fund | **1** |  | **1** |  | **1** |  |  |
| 20 | Victory RS Mid Cap Growth Fund | **1** |  | **1** | **1** | **1** |  | **1** |
| 21 | Victory RS Partners Fund | **1** | **1** |  | **1** | **1** |  | **1** |
| 22 | Victory RS Science and Technology Fund | **1** |  | **1** |  | **1** |  |  |
| 23 | Victory RS Select Growth Fund | **1** |  | **1** |  | **1** |  | **1** |
| 24 | Victory RS Small Cap Growth Fund | **1** |  | **1** |  | **1** |  | **1** |
| 25 | Victory RS Value Fund | **1** |  | **1** |  | **1** |  |  |
| 26 | Victory S&P 500 Index Fund | **1** | **1** |  |  | **1** |  |  |
| 27 | Victory Sycamore Established Value Fund | **1** | **1** | **1** |  | **1** | **1** | **1** |
| 28 | Victory Sycamore Small Company Opportunity Fund | **1** | **1** |  |  | **1** | **1** | **1** |
| 29 | Victory Trivalent International Fund - Core Equity | **1** |  |  |  | **1** | **1** | **1** |
| 30 | Victory Trivalent International Small-Cap Fund | **1** |  | **1** |  | **1** | **1** | **1** |
| 31 | Victory Trivalent Emerging Markets Small-Cap Fund |  |  |  |  | **1** |  |  |

---

As of May 19, 2026

## Ex-99.M

**SCHEDULE I**

**TO THE DISTRIBUTION AND SERVICE PLAN**

**FOR**

**CLASS R SHARES OF THE**

**VICTORY PORTFOLIOS**

**Dated December 11, 1998 and Amended and Restated February 20, 2013**

This Plan shall be adopted with respect to Class R Shares of the following series of Victory Portfolios:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Fund Name | Rate\* | Fund Name | Rate\* |
| 1 | Victory Diversified Stock Fund | 0.50% |  |  |
| 2 | Victory High Yield Fund | 0.50% |  |  |
| 3 | Victory Fund for Income | 0.25% |  |  |
| 4 | Victory Integrity Small-Cap Value Fund | 0.50% |  |  |
| 5 | Victory RS Global Fund | 0.50% |  |  |
| 6 | Victory RS International Fund | 0.50% |  |  |
| 7 | Victory RS Partners Fund | 0.50% |  |  |
| 8 | Victory S&P 500 Index Fund | 0.50% |  |  |
| 9 | Victory Sycamore Established Value Fund | 0.50% |  |  |
| 10 | Victory Sycamore Small Company Opportunity Fund | 0.50% |  |  |

---

\*Expressed as a percentage of the average daily net assets of each Fund attributed to its Class R Shares. As of December 4, 2025

## Ex-99.M

**SCHEDULE I**

**TO THE DISTRIBUTION AND SERVICE PLAN**

**FOR**

**CLASS C SHARES OF THE**

**VICTORY PORTFOLIOS**

**Dated February 26, 2002**

This Plan shall be adopted with respect to Class C Shares of the following series of Victory Portfolios:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Fund Name | Rate\* |  | Fund Name | Rate\* |
| 1 | Victory Diversified Stock Fund | 1.00%\*\* | 18 | Victory RS Large Cap Alpha Fund | 1.00%\*\* |
| 2 | Victory Floating Rate Fund | 1.00%\*\* | 19 | Victory RS Mid Cap Growth Fund | 1.00%\*\* |
| 3 | Victory Global Energy Transition Fund | 1.00%\*\* | 20 | Victory RS Science and Technology Fund | 1.00%\*\* |
| 4 | Victory High Income Municipal Bond Fund | 1.00%\*\* | 21 | Victory RS Select Growth Fund | 1.00%\*\* |
| 5 | Victory High Yield Fund | 1.00%\*\* | 22 | Victory RS Small Cap Growth Fund | 1.00%\*\* |
| 6 | Victory Fund for Income | 1.00%\*\* | 23 | Victory RS Value Fund | 1.00%\*\* |
| 7 | Victory Low Duration Bond Fund | 1.00%\*\* | 24 | Victory Sycamore Established Value Fund | 1.00%\*\* |
| 8 | Victory Core Bond Fund | 1.00%\*\* | 25 | Victory Tax-Exempt Fund | 1.00%\*\* |
| 9 | Victory Integrity Discovery Fund | 1.00%\*\* | 26 | Victory Trivalent International Fund-Core Equity | 1.00%\*\* |
| 10 | Victory Integrity Small-Cap Value Fund | 1.00%\*\* | 27 | Victory Trivalent International Small-Cap Fund | 1.00%\*\* |
| 11 | Victory Integrity Mid-Cap Value Fund | 1.00%\*\* |  |  |  |
| 12 | Victory Mid-Cap Core Growth Fund | 1.00%\*\* |  |  |  |
| 13 | Victory Multi-Cap Fund | 1.00%\*\* |  |  |  |
| 14 | Victory RS Global Fund | 1.00%\*\* |  |  |  |
| 15 | Victory RS Growth Fund | 1.00%\*\* |  |  |  |
| 16 | Victory RS International Fund | 1.00%\*\* |  |  |  |
| 17 | Victory RS Investors Fund | 1.00%\*\* |  |  |  |

---

\*Expressed as a percentage per annum of the average daily net assets of each Fund attributed to its Class C Shares.

\*\*Of this amount, no more than the maximum amount permitted by NASD Conduct Rules will be used to finance activities primarily intended to result in the sale of Class C shares.

As of December 4, 2025

## Ex-99.M

**SCHEDULE I**

**TO THE DISTRIBUTION AND SERVICE PLAN**

**FOR**

**CLASS A SHARES OF THE**

**VICTORY PORTFOLIOS**

**Dated August 1, 2013**

This Plan shall be adopted with respect to Class A Shares of the following series of Victory Portfolios:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Fund Name | Rate\* |  | Fund Name | Rate\* |
| 1 | Victory Diversified Stock Fund | 0.25% | 22 | Victory RS Partners Fund | 0.25% |
| 2 | Victory Floating Rate Fund | 0.25% | 23 | Victory RS Science and Technology Fund | 0.25% |
| 3 | Victory Global Energy Transition Fund | 0.25% | 24 | Victory RS Select Growth Fund | 0.25% |
| 4 | Victory High Yield Fund | 0.25% | 25 | Victory RS Small Cap Growth Fund | 0.25% |
| 5 | Victory High Income Municipal Bond Fund | 0.25% | 26 | Victory RS Value Fund | 0.25% |
| 6 | Victory Fund for Income | 0.25% | 27 | Victory S&P 500 Index Fund | 0.15% |
| 7 | Victory Investment Grade Convertible Fund | 0.25% | 28 | Victory Sycamore Established Value Fund | 0.25% |
| 8 | Victory Low Duration Bond Fund | 0.25% | 29 | Victory Sycamore Small Company Opportunity Fund | 0.25% |
| 9 | Victory Core Bond Fund | 0.25% | 30 | Victory Tax-Exempt Fund | 0.25% |
| 10 | Victory Integrity Discovery Fund | 0.25% | 31 | Victory Trivalent International Fund-Core Equity | 0.25% |
| 11 | Victory Integrity Mid-Cap Value Fund | 0.25% | 32 | Victory Trivalent International Small-Cap Fund | 0.25% |
| 12 | Victory Integrity Small/Mid-Cap Value Fund | 0.25% |  |  |  |
| 13 | Victory Integrity Small-Cap Value Fund | 0.25% |  |  |  |
| 14 | Victory Mid-Cap Core Growth Fund | 0.25% |  |  |  |
| 15 | Victory Multi-Cap Fund | 0.25% |  |  |  |
| 16 | Victory RS Growth Fund | 0.25% |  |  |  |
| 17 | Victory RS Global Fund | 0.25% |  |  |  |
| 18 | Victory RS International Fund | 0.25% |  |  |  |
| 19 | Victory RS Investors Fund | 0.25% |  |  |  |
| 20 | Victory RS Large Cap Alpha Fund | 0.25% |  |  |  |
| 21 | Victory RS Mid Cap Growth Fund | 0.25% |  |  |  |

---

\*Expressed as a percentage per annum of the average daily net assets of each Fund attributed to its Class A Shares.

As of December 4, 2025