Victory High Yield Fund Commentary - 1Q 2025
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Agreyes33124Victory High Yield Fund Commentary - 1Q 2025
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Agreyes33124VICTORY HIGH YIELD FUND
QUARTERLY COMMENTARY
As of March 31, 2025
Fund Performance Summary
In the first quarter of 2025, the Victory High Yield Fund (the
“Fund”) returned 2.21% (A Shares without sales charge),
outperforming its benchmark, the Bloomberg U.S. Corporate High
Yield Bond Index (the “Index”), which returned 1%, and
outperforming its peer group.
Contributors to the Fund’s performance relative to the Index in the
quarter included allocation to Construction Machinery, and
Pharma, and security selection in the Healthcare and Media
sectors. Our allocations to the Transportation, and Airlines sectors
in the Fund were detractors in the quarter.
Investment Performance (%)
Average Annual Returns as of March 31, 2025
Since Expense Ratio
Victory High Yield Fund
Q1 2025 YTD 1 Year 3 Year 5 Year 10 Year Inception
(Class A – GUHYX) Gross Net
(9/1/98)
A Shares, without sales charge 2.21 2.21 7.87 2.06 6.12 4.66 5.44 1.09 1.00
A Shares, with sales charge (max. 2.25%) – – 5.54 1.29 5.64 4.42 5.35 1.09 1.00
Bloomberg U.S. Corporate High Yield Index 1.00 1.00 7.69 4.98 7.29 5.01 – – –
Source: Victory Capital data analyzed through Zephyr
Past performance does not guarantee future results. The performance quoted represents past performance and current performance may be
lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less
than the original cost. To obtain performance information current to the most recent month-end, visit www.vcm.com. Returns include reinvestment
of dividends and capital gains. Performance for periods greater than one year is annualized. Fee waivers and/or expense reimbursements were in place for
some or all periods shown, without which, fund performance would have been lower. Net expense ratio reflects the contractual waiver and/or
reimbursement of management fees through April 30, 2025.
Not FDIC Insured • May Lose Value • No Bank Guarantee 1
20250428-4418927
VICTORY HIGH YIELD FUND As of March 31, 2025
Carefully consider a fund’s investment objectives, risks, International investments may involve risk of capital loss from unfavorable
charges and expenses before investing. To obtain a fluctuation in currency values, from differences in generally accepted
prospectus or summary prospectus containing this and other accounting principles or from economic or political instability in other
important information, visit www.vcm.com/prospectus. Read it nations.
carefully before investing.
Derivatives may not work as intended and may result in losses. The value
Other share classes are available, but not all share classes are available to of your investment is also subject to geopolitical risks such as wars,
all investors. terrorism, environmental disasters, and public health crises; the risk of
technology malfunctions or disruptions; and the responses to such events
All investing involves risk, including the potential loss of principal.
by governments and/or individual companies.
Fixed income securities are subject to interest rate, inflation, credit and
default risk. The bond market is volatile. Bonds and bond funds will The opinions are as of the date noted and are subject to change at any
decrease in value as interest rates rise and vice versa. Credit risk refers to time due to changes in market or economic conditions. The comments
the possibility that debt issuers may not be able to make principal and should not be construed as a recommendation of individual holdings or
interest payments or may have their debt downgraded by ratings agencies. market sectors, but as an illustration of broader themes.
High yield securities may be more volatile, be subject to greater levels of
The Bloomberg U.S. Corporate High Yield Bond Index measures the
credit or default risk, and may be less liquid and more difficult to sell at an
USD-denominated, high yield, fixed-rate corporate bond market. Securities
advantageous time or price than higher-rated securities of similar maturity.
are classified as high yield if the middle rating of Moody’s, Fitch and S&P is
There may be limited public information available regarding the floating rate
Ba1/BB+/BB+ or below. Bonds from issuers with an emerging markets
loans in which the Fund invests; they may be difficult to value and may be
country of risk, based on the Barclays EM country definition, are excluded.
illiquid, meaning that the Adviser may not be able to sell them at an
advantageous time or price, which may adversely affect the Fund. In The Fund is distributed by Victory Capital Services, Inc. (“VCS”). Victory
unusual or adverse markets, floating rate loans may have higher than Capital Management Inc. (“VCM”), an affiliate of VCS, is the investment
normal default rates. In periods of recession, the Fund’s investments in adviser to the Funds.
floating rate loans are more likely to decline. Convertible securities rank
senior to the issuer’s common stock, but may be subordinate to senior Effective as of the close of business on October 3, 2024, Park Avenue
Institutional Advisers LLC is no longer serving as the Fund's sub-adviser.
debt obligations. In part, the total return for a convertible security may
depend upon the performance of the underlying stock into which it can be VCM will continue to serve as the Fund's adviser, with day-to-day portfolio
converted. Synthetic convertibles may respond differently to market management of the Fund performed by members of Victory Income
Investors, a Victory Capital Investment Franchise. Please see the
fluctuations than traditional convertible securities. They are also subject to
counterparty risk. Mortgage-backed securities (“MBS”) and asset-backed prospectus for more information.
securities (“ABS”) are subject to credit, prepayment and extension risk and ©2025 Victory Capital Management Inc.
may react differently to changes in interest rates than other bonds. Small
movements in interest rates may quickly and significantly reduce the value V17.113 // 1Q 2025 VC High Yield Fund COM
of certain MBS and ABS. The fund is also subject to liquidity risk, which is
the risk that the Adviser may not be able to sell a security at an
advantageous time or price, which may adversely affect the Fund.
WWW.VCM.COM
20250428-4418927
