Victory Fund For Income

Quarterly Commentary
As of June 30, 2025

Commentary
For the quarter ended June 30, 2025, the Victory Fund for Income Our largest allocation, to GNMA pass-throughs, was our largest
(Class A shares, net asset value) had a total return of 1.06%. The contributor to positive total return this quarter. Our 22.5% allocation
Fund’s benchmark index, the Bloomberg U.S. 1-5 Year to U.S. Treasury bonds was our second-largest contributor to total
Government Bond Index, had a total return of 1.38%. return, and our smallest allocation (3.1% to GNMA structure)
contributed the smallest amount to our positive total return. We
Equity markets all ended in the black for the second quarter, with continue to selectively buy or create high-coupon GNMA platinum
the Dow Jones Industrial Average up 5.5% , the S&P 500 ® Index pools as opportunities arise.
up 10.9% , and the Nasdaq up 18.0 %. The U.S. Federal Reserve
remained on hold. The U.S. yield curve steepened as rates fell at The U.S. labor market remains in a position of strength, and
the short end and rose at the long end. Two-year and five-year inflation continues to moderate. Yet, normal economic activity and
U.S. Treasury bond yields were down roughly 4% each, while tens the resulting Federal Open Market Committee (FOMC) decisions
held steady and 30-year U.S. Treasury bond yields rose 4.5%. that typically drive headlines are likely to continue to take a back
Bond prices move opposite yields. seat to changes in government policy. The ongoing uncertainty
may tend to encourage some consumers to spend less, cause
With lower short-end rates, all fixed income sectors enjoyed some corporations to limit new hires, and may also limit certain
positive total and excess returns versus duration-neutral U.S. new investments. However, with corporate and consumer balance
Treasury bonds for the second quarter. Corporate bonds had the sheets remaining in good order, the rally may continue. The bond
most positive returns versus U.S. Treasury bonds. CMBS market seems none too disturbed by the passage of the One Big
(commercial mortgage-backed securities) had the next most Beautiful Bill Act. With inflation still slightly above target, the Fed
positive return relative to duration-neutral U.S. Treasury bonds. should be patient, as monetary policy remains well-positioned to
ABS (asset-backed securities), agency debt, and MBS (mortgage- respond to changes in the data. Come what may, the goal of our
backed securities) all had positive returns relative to U.S. Treasury strategy remains consistent as we seek to deliver high, reliable
bonds. Within the mortgage market, Freddie Mac (FHLMC) led income and preservation of capital.
Fannie Mae (FNMA), which led Ginnie Mae (GNMA). All had
positive total returns and excess returns versus duration-neutral
U.S. Treasury bonds.

Investment Performance (%)

Average Annual Returns as of June 30, 2025
Victory Fund for Income Since Expense Ratio
Q2 2025 YTD 1 Year 3 Year 5 Year 10 Year
(Class A – IPFIX) Inception* Gross Net

A Shares, without sales charge 1.06 2.89 5.52 3.07 0.60 1.17 3.01 0.97 0.91

A Shares, with sales charge (max. 2.25%) -1.24 0.52 3.11 2.29 0.13 0.94 2.92 0.97 0.91

*Since inception results are as of September 16, 1987.

Bloomberg U.S. 1-5 Year Government Bond Index 1.38 3.45 6.11 3.25 0.86 1.59 – – –

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. Other share classes are available. 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 October 31, 2025.

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Not FDIC Insured • May Lose Value • No Bank Guarantee
20250729-4690452
 As of June 30, 2025

Carefully consider a fund’s investment objectives, risks, and capital gains but do not include advisory fees, transaction costs, or
charges and expenses before investing. To obtain a other expenses. One cannot invest directly in an index.
prospectus or summary prospectus containing this and other Distributed by Victory Capital Services, Inc., an affiliate of Victory Capital
important information, visit www.vcm.com/prospectus. Read it Management Inc., the Fund’s investment adviser.
carefully before investing. The LSEG Lipper Fund Awards, granted annually, highlight funds and fund
companies that have excelled in delivering consistently strong risk-adjusted
All investing involves risk, including the potential loss of principal.
performance relative to their peers.
Fixed income securities are subject to interest rate, inflation, credit and
default risk. The bond market is volatile. Bonds and bond funds will The LSEG Lipper Fund Awards are based on the Lipper Leader for
decrease in value as interest rates rise and vice versa. Credit risk refers to Consistent Return rating, which is a risk-adjusted performance measure
the possibility that debt issuers may not be able to make principal and calculated over 36, 60 and 120 months. The fund with the highest Lipper
interest payments or may have their debt downgraded by ratings agencies. Leader for Consistent Return (Effective Return) value in each eligible
Mortgage-backed securities (MBS) and asset-backed securities (ABS) are category wins the LSEG Lipper Fund Award.
subject to credit, prepayment and extension risk and may react differently to Victory Government Securities Fund, R6 was selected from among 13
changes in interest rates than other bonds. Small movements in interest funds and 58 share classes in the Intermediate U.S. Government fund
rates may quickly and significantly reduce the value of certain MBS and category over three years for the period ending November 30, 2024.
ABS. The market value of a security issued on a when-issued, to-be- Victory Fund for Income, Institutional was selected from among 13 funds
announced (TBA) or delayed-delivery basis may change before the delivery and 52 share classes in the GNMA fund category over three years for the
date, which may adversely impact the Fund’s net asset value. There is also period ending November 30, 2024.
the risk that a party fails to deliver the security on time or at all. The fund is Victory Fund for Income, Institutional was selected from among 13 funds
also subject to liquidity risk, which is the risk that the Adviser may not be and 49 share classes in the GNMA fund category over five years for the
able to sell a security at an advantageous time or price, which may period ending November 30, 2024.
adversely affect the Fund. The value of your investment is also subject to
geopolitical risks such as wars, terrorism, environmental disasters, and For more information, see lipperfundawards.com. Although LSEG Lipper
public health crises; the risk of technology malfunctions or disruptions; and makes reasonable efforts to ensure the accuracy and reliability of the data
the responses to such events by governments and/or individual companies. contained herein, the accuracy is not guaranteed by LSEG Lipper.
The opinions are as of the date noted and are subject to change at any ©2025 LSEG. All rights reserved. Used under license.
time due to changes in market or economic conditions. The comments ©2025 Victory Capital Management Inc.
should not be construed as a recommendation of individual holdings or V17.043 // 2Q 2025 Victory Fund for Income COM
market sectors, but as an illustration of broader themes.
The Bloomberg U.S. 1-5 Year Government Bond Index seeks to
measure the performance of U.S. Treasuries and Agencies with less than
five years to maturity. Index returns reflect the reinvestment of dividends

For more information about separate accounts and mutual funds, contact
Victory Capital Management at 800.991.8191 or visit vcm.com.
WWW.VCM.COM
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20250729-4690452