<PAGE> 1
The Victory Funds
Managed by KeyCorp
SEMIANNUAL REPORT
April 30, 1996
"When you do nothing, you feel overwhelmed and
powerless. But when you get involved, you feel the
sense of hope and accomplishment that comes from
knowing you are working to make things better."
Pauline R. Kezer
<PAGE> 2
TABLE OF CONTENTS
Shareholder Letter 2
Financial Statements
Schedules of Investments 5
Statements of Assets and Liabilities 83
Statements of Operations 89
Statements of Changes in Net Assets 95
Notes to Financial Statements and Financial Highlights 103
KeyCorp Mutual Fund Advisers, Inc. ("KMFA"), a subsidiary of KeyCorp, is the
investment adviser to The Victory Funds. The Victory Funds are sponsored and
distributed by Victory Broker Dealer Services, Inc., which is not affiliated
with KMFA, KeyCorp, any KeyCorp bank or their affiliates. KMFA and Key Trust
Company of Ohio, N.A., also a subsidiary of KeyCorp, receive fees from The
Victory Funds for their services.
This report is not authorized for distribution to prospective investors
unless preceded or accompanied by a current prospectus for The Victory Funds.
NOT FDIC INSURED
Shares of The Victory Funds are not deposits or other obligations of, or
guaranteed by, any KeyCorp bank, KeyCorp Mutual Fund Advisers, Inc., or their
affiliates, and are subject to investment risks, including possible loss of the
principal amount invested.
<PAGE> 3
A Letter to
Our Shareholders
Leigh A. Wilson
President
THE VICTORY FUNDS
Dear Shareholder,
We are pleased to present you with the semiannual report for The Victory Funds
for the six month period ended April 30, 1996. During this period the stock
market experienced record highs. This robust performance has coincided with an
increased influx of new investment dollars into mutual funds.
In January of this year, KeyCorp Mutual Fund Advisers, Inc. became the adviser
to the Funds. With the leadership of its CEO, W. Christopher Maxwell, the
objective and purpose of Key Mutual Fund Advisers, Inc. (KMFA) is to continue
to enhance the Funds' focus on quality services and products for its
shareholders. I am pleased to introduce Chris to you and give you an
opportunity to hear his perspective.
Leigh Wilson:
Chris, industry statistics show that mutual fund assets reached over $3
trillion this year. Victory participated in this growth and out-paced the
industry as a whole in 1995 with its stock portfolio assets increasing 60%
versus the industry's 40% growth rate. To what do you attribute Victory's
strong growth?
"There is no point at which you can say, `Well, I'm successful now. I might as
well take a nap.'" -Carrie Fisher
W. Christopher Maxwell
Chief Executive Officer
KEYCORP MUTUAL FUND ADVISERS
Chris Maxwell:
While the day-to-day investment management process and mutual fund business is
continually confronted with complex issues and challenges, I would like to
think that Victory's positive momentum is based on some enduring, key factors:
product, performance and quality service. Victory Funds cover a wide range of
investment styles and objectives for a wide variety of investors. In recent
months, Victory introduced several new share classes, an additional feature
that appeals to a broad group of investors.
Leigh Wilson:
Would you elaborate a bit on an issue that is of importance to many of our
shareholders: namely, performance?
<PAGE> 4
Chris Maxwell:
Consistent performance is extremely important to investors. The opportunity to
boast double-digit returns for all of Victory's stock funds for the 12 months
ended April 30, 1996 is rewarding to both our management team and Victory
shareholders. Rankings and ratings don't always tell the full or complete
story; however, the coveted #1 rank in their class for one-year performance
assigned to Victory National Municipal Bond and Ohio Municipal Bond Funds by
Lipper Analytical Services, are performance grades we've worked hard to
achieve. We are also proud of our Victory Diversified Stock Fund's total return
numbers. For the period ending April 30, 1996 they were 31.32% (1 year), 15.23%
(5 year) and 14.34% since inception (10-20-89 to 4-30-96).*
Lipper Analytical Services ranked The National Municipal Bond Fund (Class A
Shares) #1 of 135 funds in the Lipper Intermediate Municipal Debt Funds
category for the one-year period ended 4/30/96.
Lipper Analytical Services ranked The Ohio Municipal Bond Fund (Class A Shares)
#1 of 54 funds in the Lipper Ohio Municipal Debt Funds category for the
one-year period ended 4-30-96 and #6 of 18 funds for the five-year period
ended 4-30-96.
All rankings are based on total return and do not include the effect of sales
charges. During the period for which the rankings are based, The National
Municipal Bond Fund and The Ohio Municipal Bond Fund waived fees and/or
reimbursed operating expenses.
In the absence of these waivers or reimbursements, the total return would
have been lower and the ranking for both funds may also have been lower.
Past performance is no guarantee of future results. Investment returns and
principal value will fluctuate so that you may have a gain or loss when you
sell your shares.
*25.03%, 14.12% and 13.49% are The Diversified Stock Fund's average annual
total returns including the maximum 4.75% sales charge for the one - five and
inception to date periods as of April 30, 1996. All other performance
figures exclude sales charges. Past performance is no guarantee of future
results.
"There is no point at which you can say, 'Well, I'm successful now. I might as
well take a nap.'" -Carrie Fisher
Leigh Wilson:
How does the strength of the U.S. economy influence the investment markets?
Chris Maxwell:
We are currently experiencing a phase of economic strength buoyed by consumer
spending. Some economists interpret the statistics as a temporary increase in
consumer purchasing power, while others see the strength as longer-lasting due
<PAGE> 5
to underlying trends in business investments. Whatever the case, the fact
remains that for the financial markets, steady and sustained growth is
preferable to volatility, in whatever direction.
Leigh Wilson:
I recall that the healthy employment report released in February sent financial
markets into a temporary tailspin. How did Victory shareholders react during
this period?
Chris Maxwell:
The stability of the Funds' assets during volatile market conditions confirms
that The Victory Funds have appeal to long-term investors. In fact, The
National Municipal Bond Fund attracted new investment dollars of approximately
$45 million in February alone. This is a considerable one month record when
measured against fears of inflation and weak bond prices, especially when new
investments into the Fund actually tripled the size of the Fund's investment
portfolio.
Leigh Wilson:
Any last thoughts you'd like to share with our readers on service, quality, and
investing in general?
Chris Maxwell:
Management has recently undertaken the considerable task of selecting a new
service agent for the Funds to provide shareholders with the highest quality of
services. We recognize that communication in the form of statements, tax
information, and the like, as well as services to support Victory Fund share
transactions are extremely important to our shareholders. The conversion to a
new transfer agent is an important element in Victory's service standards.
In addition, we are always looking for opportunities to provide Victory
shareholders with the best possible investment service. During the past several
months, portfolio management assignments have changed to allow the Funds to
take the best advantage of management talent available throughout our corporate
franchise. The steady inflow of assets into the mutual fund industry has more
to do with longer-term trends-the way people save and invest, how much they
need to set aside for a comfortable retirement, their children's education and
other financial goals. More simply, this trend has to do with the way people
live and how they want to live in the future. An investors' future financial
health is dependent on a disciplined investment program.
For more information about The Victory Funds, including charges and expenses,
request a prospectus by calling 1-800-KEY-FUND. Please read it carefully before
you invest or send money.
The Victory Funds are distributed by Victory Broker-Dealer Services, Inc.,
which is not affiliated with KeyCorp, and advised by KeyCorp Mutual Fund
Advisers, Inc., a subsidiary of KeyCorp. KeyCorp Mutual Fund Advisers, Inc. and
certain other subsidiaries of KeyCorp receive fees from the Funds for their
services, as set forth in the prospectus.
<PAGE> 6
Schedule of Investments
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands)
U.S. GOVERNMENT OBLIGATIONS FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
- -------------------------------------------
U.S. TREASURY NOTES (22.1%)
$25,000 4.25%, 5/15/96 $ 24,988
80,000 6.13%, 7/31/96 80,109
50,000 6.50%, 9/30/96 50,286
50,000 6.88%, 10/31/96 50,424
25,000 7.25%, 11/30/96 25,289
30,000 7.50%, 1/31/97 30,571
- ---------------------------------------------------------
TOTAL U.S. TREASURY NOTES 261,667
- ---------------------------------------------------------
TOTAL INVESTMENTS 261,667
- ---------------------------------------------------------
- ---------------------------------------------------------
REPURCHASE AGREEMENTS (77.8%)
55,000 Audrey Langston,
5.32%, 5/1/96,
(Collateralized by $55,620
various U.S. Treasury
Securities, 4.75%-6.50%,
5/15/96-4/30/97, market
value-$56,110) 55,000
55,000 Barclays Bank,
5.32%, 5/1/96,
(Collateralized by
$216,656 various U.S.
Treasury Securities,
0.00%-6.37%,
8/15/02-8/15/25, market
value-$56,100) 55,000
55,000 Chase Securities,
5.32%, 5/1/96,
(Collateralized by $53,295
various U.S. Treasury
Notes, 5.75%-8.88%,
11/15/98-8/15/03, market
value-$56,101) 55,000
50,000 Deutsche Bank,
5.30%, 5/1/96,
(Collateralized by $45,985
various U.S. Treasury
Securities, 5.63%-10.75%,
2/28/97-8/15/05, market
value-$51,000) 50,000
51,688 Donaldson-Lufkin Jenrette,
5.34%, 5/1/96,
(Collateralized by
$155,192 various U.S.
Treasury Securities,
0.00%, 2/15/97-11/15/21,
market value-$52,722) 51,688
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
$55,000 Goldman Sachs,
5.33%, 5/1/96,
(Collateralized by $47,337
U.S. Treasury Bonds,
6.50%, 2/15/20, market
value-$56,101) $ 55,000
55,000 Harris Securities,
5.35%, 5/1/96,
(Collateralized by
$131,345 various U.S.
Treasury Securities,
0.00%, 6/15/97-11/15/21,
market value-$56,100) 55,000
50,000 Lehman Brothers,
5.30%, 5/1/96,
(Collateralized by $46,115
U.S. Treasury Notes,
8.75%, 8/15/00, market
value-$51,834) 50,000
50,000 Morgan Stanley,
5.30% 5/1/96,
(Collateralized by $51,160
U.S. Treasury Bills,
5/23/96, market value-
$51,002) 50,000
290,000 NationsBank,
5.37%, 5/1/96,
(Collateralized by
$301,285 various U.S.
Treasury Securities & U.S.
Government Agencies,
0.00%-9.25%, 5/15/96-
4/30/01, market value-
$295,803) 290,000
55,000 Nomura Securities,
5.32%, 5/1/96,
(Collateralized by $69,238
various U.S. Treasury
Securities, 0.00%-12.00%,
4/30/97-2/15/25, market
value-$56,243) 55,000
50,000 Sanwa Bank,
5.30%, 5/1/96,
(Collateralized by $41,521
various U.S. Treasury
Securities & U.S.
Government Agencies,
5.65%-6.45%, 5/1/96-
12/12/05, market value-
$51,001) 50,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE> 7
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands)
U.S. GOVERNMENT OBLIGATIONS FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
$50,000 UBS Securities,
5.31%, 5/1/96,
(Collateralized by $49,135
U.S. Treasury Notes,
7.50%, 12/31/96, market
value-$51,005) $ 50,000
- ---------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS 921,688
- ---------------------------------------------------------
TOTAL (COST $1,183,355)(A) $1,183,355
=========================================================
</TABLE>
- ---------------
Percentages indicated are based on net assets of $1,184,314.
(a) Cost for federal income tax and financial reporting purposes are the same.
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE> 8
Schedule of Investments
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands)
PRIME OBLIGATIONS FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
- --------------------------------------------
CERTIFICATES OF DEPOSIT (1.1%)
$ 5,000 Deutsche Bank,
5.06%, 8/5/96 $ 5,000
- --------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT 5,000
- --------------------------------------------------------
- --------------------------------------------
COMMERCIAL PAPER (30.3%)
15,000 Bishopgate Funding Corp.,
5.33%, 5/20/96 14,958
3,000 Broadway Capital Corp.,
5.40%, 5/14/96 2,994
5,000 Broadway Capital Corp.,
5.40%, 5/15/96 4,990
10,000 Canon USA,
5.32%, 5/10/96 9,987
2,000 Coca-Cola,
5.30%, 5/31/96 1,991
4,000 Cofco,
5.29%, 6/17/96 3,972
5,000 Compagnie Bancaire,
5.32%, 6/28/96 4,957
5,000 Dean Witter Discover,
5.05%, 5/8/96 4,995
2,980 Fleet Funding Corp.,
5.35%, 5/15/96 2,974
10,000 Fleet Funding Corp.,
5.35%, 5/22/96 9,969
5,633 Fleet Funding Corp.,
5.35%, 5/28/96 5,610
3,000 Galicia Funding Corp.,
5.30%, 9/20/96 2,937
10,000 Hansen Finance,
5.40%, 5/22/96 9,969
6,000 Intel Corp.,
5.24%, 6/28/96 5,949
2,000 Morgan Stanley Corp.,
5.40%, 5/13/96 1,996
4,000 Pemex LOC,
5.25%, 5/13/96 3,993
3,000 Pitney Bowes Credit Corp.,
5.25%, 5/15/96 2,994
3,200 Sony Capital Corp.,
5.33%, 5/17/96 3,193
5,000 Toshiba America,
5.13%, 5/28/96 4,981
10,000 Toyota Motor Credit Corp.,
5.33%, 6/12/96 9,938
5,000 Transamerica Finance Corp.,
5.33%, 6/11/96 4,970
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
$ 3,000 Transamerica Finance Corp.,
5.31%, 6/28/96 $ 2,974
4,000 United States Leasing
Capital Corp.,
5.34%, 5/1/96 4,000
6,100 Vehicle Services LOC,
5.16%, 6/14/96 6,062
4,000 WMX Technologies,
5.23%, 10/8/96 3,907
- --------------------------------------------------------
TOTAL COMMERCIAL PAPER 135,260
- --------------------------------------------------------
- --------------------------------------------
CORPORATE BONDS (4.3%)
2,000 Associates Corp.,
7.50%, 10/15/96 2,029
2,000 AT&T Capital Corp.,
6.30%, 7/30/96 2,001
3,000 Ford Motor Credit Corp.,
9.00%, 6/28/96 3,069
1,100 Ford Motor Credit Corp.,
8.25%, 7/15/96 1,106
2,000 General Electric Capital
Corp.,
5.97%, 8/21/95 2,000
900 Merrill Lynch Corp.,
4.75%, 6/24/96 892
2,500 Philip Morris,
5.88%, 7/1/96 2,564
5,725 WMX Technologies,
4.88%, 6/15/96 5,673
- --------------------------------------------------------
TOTAL CORPORATE BONDS 19,334
- --------------------------------------------------------
- --------------------------------------------
CORPORATE NOTES (32.9%)
3,215 Astro Aluminum,
5.50%*, 4/1/05** 3,215
5,000 AT&T Capital Corp.,
5.45%*, 11/1/96 5,000
10,000 AT&T Capital Corp.,
5.59%*, 11/29/96 9,999
3,300 Baylis Group Partnership
5.60%*, 1/1/10** 3,300
5,000 Bear Stearns Cos.,
5.58%*, 5/23/96** 5,000
275 Carelife, Inc.,
5.50%*, 8/1/11** 275
2,350 Carelife, Inc.,
5.50%*, 8/1/11** 2,350
1,530 Cleveland Steel Container,
5.50%*, 12/1/08** 1,530
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE> 9
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands)
PRIME OBLIGATIONS FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
$ 7,500 Cuyahoga County, Ohio
Taxable Economic
Development Revenue,
5.50%*, 6/1/22** $ 7,500
5,000 Dean Witter,
5.67%*, 2/3/97 5,007
865 Dietz Road Ltd. Partnership,
5.50%*, 11/1/08** 865
2,920 Dome Corp. -- Dome Corp.
Project,
5.53%*, 8/31/16** 2,920
2,500 Ford Motor Credit Corp.,
5.41%, 3/14/97 2,497
1,000 GCG Portage,
5.40%*, 2/1/26** 1,000
5,350 General Electric Capital
Corp.,
5.28%*, 8/1/96 5,348
1,900 GMH Enterprises,
5.50%*, 7/1/03** 1,900
15,000 Goldman Sachs Group,
5.55%*, 8/5/96 14,995
385 Highland Road Partners,
5.50%*, 10/1/04** 385
4,000 Huntington National Bank,
5.40%*, 11/13/96 4,000
22,000 Lehman Government Securities
Master Note,
5.53%*, 5/1/96** 22,000
925 McKinley Air Transport,
5.50%*, 8/1/09** 925
1,000 MCMC Pob LII,
5.50%*, 8/1/14** 1,000
5,000 Merrill Lynch Corp.,
5.38%*, 5/24/96 4,996
8,000 Morgan Stanley Group,
5.54%*, 3/15/01** 8,000
900 Olen Corp.,
5.50%*, 12/1/04** 900
1,580 Olen Corp.,
5.50%*, 8/1/08** 1,580
1,300 Olympic Steel Corp.,
5.55%*, 10/1/08** 1,300
5,000 PHH Corp.,
5.34%*, 8/21/96** 4,999
700 Rivnut Engineered Products,
5.50%*, 2/1/01** 700
840 S & SLP Project,
5.50%*, 12/1/07** 840
60 D. J. Schipper Enterprise,
5.90%*, 4/1/09** 60
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
$ 390 Schipper -- DJA Properties,
5.47%*, 10/1/05** $ 390
2,963 Schipper Enterprises,
5.47%*, 4/1/09** 2,963
15,000 Sea River Maritime Exxon
Shipping,
5.42%*, 10/1/01** 15,000
750 Sofa Express Project,
5.50%*, 4/1/06** 750
1,660 Tell-Schipper Properties,
Inc.,
5.47%*, 10/1/03** 1,660
1,915 Zanetos Partnership Project,
5.50%*, 7/1/13** 1,915
- --------------------------------------------------------
TOTAL CORPORATE NOTES 147,064
- --------------------------------------------------------
- --------------------------------------------
MEDIUM TERM NOTES (12.6%)
5,000 Bear Stearns Cos.,
6.22%, 12/16/96 5,009
5,000 Boatmans First National
Bank,
5.49%*, 6/12/96 5,000
4,390 CIT Group Holdings,
8.88%, 6/15/96 4,406
4,000 Federal Home Loan Bank Note,
5.40%, 3/25/96 3,995
5,000 Ford Motor Credit Corp.,
5.54%*, 5/20/96 4,995
3,500 Ford Motor Credit Corp.,
9.07%, 7/5/96 3,524
15,000 General American Life
Insurance,
5.64%*, 7 Day Put** 15,000
815 Highland Road Partners,
5.50%, 10/1/04 815
3,125 Morgan Stanley Group,
5.72%, 1/20/97 3,131
1,000 Morgan Stanley Group,
7.79%*, 2/3/97 1,017
1,000 PepsiCo, Inc.,
7.00%, 11/15/96 1,009
3,350 Reichert Limited
Partnership,
5.50%*, 4/15/11** 3,350
1,500 Transamerica Finance Corp.,
5.85%, 7/15/96 1,501
3,500 Transamerica Finance Corp.,
5.43%*, 5/27/97 3,497
- --------------------------------------------------------
TOTAL MEDIUM TERM NOTES 56,249
- --------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE> 10
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands)
PRIME OBLIGATIONS FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
- --------------------------------------------
MUNICIPAL BONDS (1.1%)
OHIO (1.1%):
$ 5,000 Industrial Development
Authority of Bedford
County,
5.31%*, 12/1/25** $ 5,000
- --------------------------------------------------------
TOTAL MUNICIPAL BONDS 5,000
- --------------------------------------------------------
- --------------------------------------------
TIME DEPOSITS (1.1%)
5,000 NationsBank Nassau,
5.31%*, 5/1/96 5,000
- --------------------------------------------------------
TOTAL TIME DEPOSITS 5,000
- --------------------------------------------------------
- --------------------------------------------
U.S. GOVERNMENT AGENCIES (10.4%)
FEDERAL HOME LOAN MORTGAGE CORP.:
4,000 5.10%, 8/23/96 4,000
5,500 5.10%, 1/13/97 5,500
FEDERAL NATIONAL MORTGAGE ASSOC.:
5,000 5.05%, 6/3/96 4,977
5,000 5.81%, 9/27/96 5,000
900 5.85%, 10/7/96 902
4,000 5.60%, 11/1/96 4,003
STUDENT LOAN MARKETING ASSOC.:
3,500 5.88%, 5/1/96 3,506
9,000 5.38%, 6/13/96 8,999
3,000 5.28%, 7/1/96 3,002
2,700 5.28%, 7/19/96 2,699
FEDERAL HOME LOAN BANK:
4,000 5.38%, 3/14/97 4,000
- --------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES 46,588
- --------------------------------------------------------
- --------------------------------------------
U.S. TREASURY NOTES (0.9%)
4,000 8.50%, 4/15/97 4,108
- --------------------------------------------------------
TOTAL U.S. TREASURY NOTES 4,108
- --------------------------------------------------------
TOTAL INVESTMENTS $423,603
========================================================
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
- --------------------------------------------
REPURCHASE AGREEMENTS (8.6%)
$ 19,326 Donaldson-Lufkin Jenrette,
5.34%, 5/1/96,
(Collateralized by $22,107,
various Resolution Funding
Corporation Strips, 0.00%,
10/15/96 - 4/15/99, market
value-$19,713) $ 19,326
19,000 NationsBank,
5.37%, 5/1/96,
(Collateralized by $38,376
U.S. Treasury Securities,
0.00%, 2/15/97 - 5/15/20,
market value-$19,382) 19,000
- --------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS 38,326
- --------------------------------------------------------
TOTAL (COST $461,929)(A) $461,929
========================================================
</TABLE>
- ---------------
Percentages indicated are based on net assets of $446,971.
(a) Cost for federal income tax and financial reporting purposes are the same.
* Variable rate securities having liquidity sources through bank letters of
credit and/or liquidity arrangements. The interest rate, which will change
periodically, is based upon bank prime rates or an index of market interest
rates. The rate reflected on the Schedule of Investments is the rate in
effect on April 30, 1996.
** Put and demand features exist allowing the Fund to require the repurchase of
the instrument within variable time periods ranging from daily, weekly,
monthly or semi-annually.
LOC -- Letter of Credit.
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE> 11
Schedule of Investments
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands)
FINANCIAL RESERVES FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
- -------------------------------------------
BANKER'S ACCEPTANCES (1.9%)
$ 5,000 ABN Amro,
5.25%, 5/17/96 $ 4,988
11,000 NationsBank,
5.13%, 5/1/96 11,000
- ----------------------------------------------------------
TOTAL BANKER'S ACCEPTANCES 15,988
- ----------------------------------------------------------
- -------------------------------------------
CERTIFICATES OF DEPOSIT (1.2%)
10,000 Deutsche Bank,
5.06%, 8/5/96 10,001
- ----------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT 10,001
- ----------------------------------------------------------
- -------------------------------------------
COMMERCIAL PAPER (39.8%)
7,000 Avco Financial Services,
5.29%, 6/21/96 6,948
7,000 Beal,
5.26%, 7/31/96 LOC
Westdeutsche Landsbank 6,907
8,000 Beta Finance,
5.33%, 5/1/96 8,000
13,000 Blue Hawk Funding,
5.35%, 5/1/96 13,000
9,123 Broadway Capital Corp.,
5.40%, 5/15/96 9,104
8,000 Broadway Capital Corp.,
5.35%, 7/25/96 7,899
10,000 Cannon USA,
5.32%, 5/10/96 9,987
25,000 Coca Cola Co.,
5.29%, 5/24/96 24,915
10,000 Coca Cola Co.,
5.30%, 5/31/96 9,956
5,000 Coca-Cola Co.,
5.28%, 6/12/96 4,969
6,000 Cofco,
5.32%, 5/31/96
LOC Credit Swiss 5,973
6,000 Cofco,
5.29%, 6/17/96, LOC Credit
Swiss 5,959
5,000 Compagnie Bancaire,
5.25%, 6/11/96 4,970
5,000 Dean Witter Discover,
5.05%, 5/8/96 4,995
14,314 Fleet Funding,
5.35%, 5/22/96 14,269
5,000 Ford Motor Credit Corp.,
5.35%, 5/2/96 4,999
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
$ 6,000 Galicia Funding,
5.30%, 9/20/96, LOC $ 5,875
10,000 Hanson Finance,
5.15%, 5/15/96 9,980
10,000 Hanson Finance,
5.40%, 5/22/96 9,969
10,000 Hanson Finance,
5.23%, 5/30/96 9,958
7,000 Intel Corp.,
5.24%, 6/28/96 6,941
6,000 Pemex,
5.25%, 5/13/96 5,990
3,000 Pitney Bowes Credit Corp.,
5.25%, 5/15/96 2,994
5,600 Pitney Bowes Credit Corp.,
5.31%, 6/12/96 5,565
10,000 Pitney Bowes Credit Corp.,
5.32%, 6/24/96 9,920
11,300 Sino Chemical,
5.37%, 5/29/96, LOC 11,253
15,000 Smith Barney,
5.30%, 5/15/96 14,969
10,000 Sony Capital Corp.,
5.45%, 5/10/96 9,986
10,000 Toshiba America,
5.13%, 5/28/96 9,961
6,000 Toyota Motor Credit Corp.,
5.33%, 6/12/96 5,963
9,000 Transamerica Finance,
5.33%, 6/11/96 8,945
4,000 Transamerica Finance,
5.31%, 6/28/96 3,966
7,000 USL Capital Corp.,
5.34%, 5/1/96 7,000
7,000 USL Capital Corp.,
5.35%, 5/8/96 6,993
11,000 Vehicle Services,
5.16%, 6/14/96 10,931
7,000 WMX Technology,
5.23%, 10/8/96 6,837
25,000 135 Bishopgate Funding,
5.33%, 5/20/96 24,930
- ----------------------------------------------------------
TOTAL COMMERCIAL PAPER 331,776
- ----------------------------------------------------------
- -------------------------------------------
CORPORATE BONDS (3.1%)
1,700 AT&T Capital Corp.,
6.30%, 7/25/96 1,701
6,000 General Electric Capital
Corp.,
5.95%, 8/22/96 5,999
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE> 12
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands)
FINANCIAL RESERVES FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
$ 2,000 U.S. West Capital Funding,
Inc.,
8.00%, 10/15/96 $ 2,021
16,000 WMX Technologies,
4.88%, 6/15/96 15,884
- ----------------------------------------------------------
TOTAL CORPORATE BONDS 25,605
- ----------------------------------------------------------
- -------------------------------------------
CORPORATE NOTES (34.9%)
8,000 AT&T Capital Corp.,
5.45%, 11/1/96 8,000
16,000 AT&T Capital Corp.,
5.59%, 11/29/96 15,999
5,000 American Express Centurion
Bank,
5.68%, 10/18/96 4,998
4,000 American General Finance,
5.80%, 4/1/97 3,998
4,500 American General Finance,
5.80%, 4/1/97 4,516
2,000 American West Properties,
5.45%*, 12/1/25**, LOC 2,000
2,330 Austin Printing Co.,
5.50%*, 8/1/14** 2,330
5,500 Australian Wheat Board,
5.76%, 5/29/96 5,500
3,470 Automated Packaging System,
5.50%*, 10/1/08**, LOC 3,470
9,000 Bear Stearns Co.,
5.57%, 5/23/96 9,000
10,000 Bear Stearns Co.,
6.22%, 12/16/96 10,018
1,000 Bee Holdings, Inc.,
5.50%*, 9/1/15**, LOC 1,000
2,000 Bee Holdings, Inc.,
5.50%*, 9/1/15**, LOC 2,000
10,000 Boatmans First National
Bank, Kansas City,
5.50%, 6/12/96 10,000
4,275 Buckeye Corrugated,
5.50%*, 1/1/05** 4,275
6,000 CIT Group Holdings,
8.88, 6/15/96 6,022
4,000 CIT Group Holdings,
7.63%, 12/5/96 4,047
7,000 Federal Home Loan Bank,
5.40%, 3/25/96 6,992
3,240 Federal Home Loan Mortgage
Corp.,
6.75%, 5/6/99** 3,240
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
$ 3,353 Ford Motor Credit Corp.,
8.25%, 5/15/96 $ 3,356
4,200 Ford Motor Credit Corp.,
8.88%, 8/1/96 4,233
4,000 Ford Motor Credit Corp.,
7.70%, 2/27/97 4,077
1,000 Ford Motor Credit Corp.,
8.05%, 3/28/97 1,020
25,000 General American Life
Insurance, Vrn, GIC 25,000
5,000 Goldman Sachs,
6.81%, 5/23/96 5,004
1,350 Hancor, Inc.,
5.50%*, 12/1/04**, LOC 1,350
7,000 Huntington National Bank,
5.40%, 11/13/96 7,000
31,982 Lehman Brothers Government
Security,
5.54%, 1/1/99** 31,982
5,000 Merrill Lynch Corp.,
4.75%, 6/24/96 4,995
15,000 Morgan Stanley Group,
5.54%, 3/15/01** 15,000
5,000 NationsBank,
5.94%, 9/18/96 5,004
1,000 PepsiCo, Inc.,
7.22%, 11/15/96 1,008
10,000 PHH Corp.,
5.34%, 8/21/96 9,999
7,000 PNC Bank,
5.40%, 3/4/97 6,995
650 Parkway Business Plaza,
5.50%*, 4/1/13**, LOC 650
1,845 SGS Tool Co.,
5.50%*, 8/1/08**, LOC 1,845
3,125 Sandridge Foods,
5.50%*, 12/1/00**, LOC 3,125
25,000 Sea River Maritime, Inc.,
5.43%, 10/1/11**, LOC 25,000
5,000 Student Loan Marketing
Assoc.,
5.38%, 6/13/96, LOC 4,999
660 TPC Properties, Inc.,
5.50%*, 11/1/09**, LOC 660
5,000 Venturecor, Inc.,
5.60%*, 4/1/36**, LOC 5,000
14,000 Xerox Credit Corp.,
5.38%*, 5/13/97**, LOC 13,987
2,430 Zanetos Partnership Project,
5.50%*, 7/1/13**, LOC 2,430
- ----------------------------------------------------------
TOTAL CORPORATE NOTES 291,124
- ----------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE> 13
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands)
FINANCIAL RESERVES FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
- -------------------------------------------
MUNICIPAL BONDS (1.0%)
$ 8,000 Bedford County, Industrial
Development Authority,
5.90%, 12/1/25**,
LOC, Societe Generale $ 8,000
- ----------------------------------------------------------
TOTAL MUNICIPAL BONDS 8,000
- ----------------------------------------------------------
- -------------------------------------------
U.S. GOVERNMENT AGENCIES (11.6%)
FEDERAL HOME LOAN BANK:
7,000 5.38%*, 3/14/97** 7,000
FEDERAL HOME LOAN MORTGAGE CORP.:
7,000 5.10%, 8/23/96** 6,999
FEDERAL NATIONAL MORTGAGE ASSOC.:
8,000 5.05%, 6/3/96 7,963
15,000 5.31%*, 5/25/99 15,000
20,000 5.29%*, 7/14/99 20,000
10,000 5.81%*, 9/27/96 10,000
5,000 5.60%, 11/1/96 5,003
STUDENT LOAN MORTGAGE ASSOC.:
10,000 5.48%*, 10/30/97 10,028
10,000 5.32%*, 9/28/98 9,996
4,500 5.34%*, 2/8/99 4,502
- ----------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES 96,491
- ----------------------------------------------------------
- -------------------------------------------
U.S. TREASURY NOTES (0.9%)
7,000 8.50%, 4/15/97 7,189
- ----------------------------------------------------------
TOTAL U.S. TREASURY NOTES 7,189
- ----------------------------------------------------------
TOTAL INVESTMENTS 786,174
- ----------------------------------------------------------
- -------------------------------------------
REPURCHASE AGREEMENTS (8.8%)
21,500 Donaldson-Lufkin Jenrette,
5.34%, 5/1/96
(Collateralized by
$287,774 U.S. Treasury
Notes & Resolution Trust
Corporation Strips, 0.00%,
5/15/96-10/15/22, market
value-$36,647) 21,500
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
$22,000 Goldman Sachs,
5.33%, 5/1/96
(Collateralized by $22,112
U.S. Treasury Note, 6.00%,
8/31/97, market value-
$22,440) $ 22,000
30,000 NationsBank,
5.37%, 5/1/96
(Collateralized by $31,843
U.S. Treasury Notes,
0.00%, 11/15/96-2/15/97,
market value $30,603) 30,000
- ----------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS 73,500
- ----------------------------------------------------------
TOTAL (COST $859,674)(A) $ 859,674
==========================================================
</TABLE>
- ---------------
Percentages indicated are based on net assets of $834,562.
(a) Cost for federal income tax and financial reporting purposes are the same.
* Variable rate securities having liquidity sources through bank letters of
credit or other liquidity arrangements. The interest rate which will change
periodically is based upon bank prime rates or an index of market interest
rates. The rate reflected on the Schedule of Investments is the rate in
effect at April 30, 1996.
** Put and demand features exist allowing the fund to require the repurchase of
the instrument within variable time periods ranging from daily, weekly,
monthly or semi-annually.
GIC -- Guaranteed Insurance Contract.
LOC -- Letter of Credit.
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE> 14
Schedule of Investments
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands)
INSTITUTIONAL MONEY MARKET FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
- ----------------------------------------------
BANKER'S ACCEPTANCES (1.5%)
$ 10,000 Canadian Imperial Bank of
Commerce,
5.32%, 6/18/96 $ 9,929
- ----------------------------------------------------------
TOTAL BANKER'S ACCEPTANCES 9,929
- ----------------------------------------------------------
- ----------------------------------------------
CERTIFICATES OF DEPOSIT (1.5%)
10,000 Deutsche Bank,
5.06%, 8/5/96 10,001
- ----------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT 10,001
- ----------------------------------------------------------
- ----------------------------------------------
COMMERCIAL PAPER (40.4%)
13,000 Avco Financial Services,
5.29%, 6/21/96 12,903
6,000 Beal,
5.26%, 7/31/96, LOC
Westdeutsche Landsbank 5,920
30,000 Blue Hawk Funding,
5.35%, 5/1/96 30,000
7,894 Broadway Capital Corp.,
5.41%, 5/28/96 7,862
7,000 Coca-Cola Co.
5.30%, 5/31/96 6,969
25,000 Coca-Cola Co.
5.28%, 6/12/96 24,846
10,000 Cofco,
5.36%, 5/28/96, LOC Credit
Swiss 9,960
6,000 Cofco,
5.29%, 6/17/96, LOC Credit
Swiss 5,959
5,000 Compagnie Bancaire,
5.25%, 6/11/96 4,970
5,000 Compagnie Bancaire,
5.29%, 6/21/96 4,962
5,000 Dean Witter Discover,
5.05%, 5/8/96 4,995
5,000 Fleet Funding,
5.35%, 5/22/96 4,984
6,000 Galicia Funding,
5.30%, 9/20/96, LOC 5,875
10,000 Hanson Finance,
5.15%, 5/15/96 9,980
10,000 Hanson Finance,
5.23%, 5/30/96 9,958
2,350 Hanson Finance,
5.42%, 6/5/96 2,338
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
$ 7,000 Intel Corp.,
5.24%, 6/28/96 $ 6,941
15,000 135 Bishopgate Funding,
5.33%, 5/20/96 14,958
5,000 Pemex,
5.25%, 5/13/96 4,991
3,000 Pitney Bowes Credit Corp.,
5.25%, 5/15/96 2,994
13,155 Retailer Funding Corp.,
5.32%, 5/22/96 13,114
7,000 Sony Capital Corp.,
5.33%, 5/17/96 6,983
6,000 Transamerica Financial
Corp.,
5.33%, 6/11/96 5,964
5,000 Transamerica Financial
Corp.,
5.31%, 6/28/96 4,957
8,000 USL Capital Corp.,
5.34%, 5/24/96 7,973
6,000 USL Capital Corp.,
5.34%, 5/1/96 6,000
2,000 Unibanco,
5.35%, 7/1/96, LOC
Westdeutsche Landsbank 1,982
10,000 Vehicle Services,
5.16%, 6/14/96 9,937
6,000 WMX Technology,
5.23%, 10/8/96 5,860
16,800 Western Financial Corp.,
5.31%, 5/15/96 16,765
- ----------------------------------------------------------
TOTAL COMMERCIAL PAPER 261,900
- ----------------------------------------------------------
- ----------------------------------------------
CORPORATE BONDS (2.5%)
3,000 General Electric Capital
Corp.,
5.95%, 8/22/96 3,000
2,500 Merrill Lynch Corp.,
4.75%, 6/24/96 2,496
1,535 Professional Center
Associates Ltd.,
5.50%*, 8/1/15**, LOC
National City Bank 1,535
2,200 Sedlak Interiors, Inc.,
5.60%*, 5/1/10** 2,200
7,000 WMX Technologies,
4.88%, 6/15/96 6,937
- ----------------------------------------------------------
TOTAL CORPORATE BONDS 16,168
- ----------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE> 15
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands)
INSTITUTIONAL MONEY MARKET FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
- ----------------------------------------------
CORPORATE NOTES (28.9%)
$ 2,025 Akron Welding,
5.50%*, 12/1/01**, LOC
National City Bank $ 2,025
5,000 American Express Centurion,
5.50%*, 1/13/97 5,001
7,000 AT&T Capital Corp.,
5.45%*, 11/1/96 7,000
14,000 AT&T Capital Corp.,
5.59%, 11/29/96* 13,999
400 Auto Tracking System,
5.50%*, 5/1/99** 400
2,300 Automated Packaging System,
5.50%*, 10/1/08**, LOC
National City Bank 2,300
6,000 Bear Stearns Co.,
6.22%, 12/16/96 6,011
5,000 Bear Stearns Co.,
5.57%*, 5/23/96 5,000
5,000 Boatmans First National
Bank, Kansas City,
5.49%*, 6/12/96 5,000
1,600 Buckeye Corrugated, Inc.
Project,
5.50%*, 1/3/05**, LOC
National City Bank 1,600
3,215 Burton I Saltzman,
5.50%*, 8/1/08** 3,215
6,000 City Group Holdings,
8.88%, 6/15/96 6,022
5,000 Dean Witter,
5.67%*, 2/3/97 5,007
1,250 Fairborn Christel Mann,
5.60%*, 6/10/10** 1,250
6,000 Federal Home Loan Bank Note,
5.40%, 3/25/96 5,993
5,000 Ford Motor Credit Corp.,
8.88%, 8/1/96 5,039
2,000 Ford Motor Credit Corp.,
9.00%*, 7/24/96 2,014
25,000 General American Life
Insurance,
5.64%*, 12/31/96** 25,000
3,800 General Electric Capital
Corp.,
7.63%, 7/24/96 3,816
4,000 General Electric Capital
Corp.,
7.63%, 7/30/96 4,017
5,000 Huntington National Bank,
5.40%*, 11/13/96 5,000
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
$ 3,850 Hannah Blvd. Limited
Partnership,
5.54%*, 9/1/15**, LOC
Commerica Bank $ 3,850
1,910 Industrial Dimensions, Inc.,
5.50%*, 1/1/00** 1,910
8,293 Lehman Government Securities
Master Note,
5.52%*, 1/1/99** 8,293
2,050 Maximum Principal Mubea
Project,
5.50%*, 12/1/04** 2,050
2,370 Monticello Investments,
5.50%*, 7/1/04** 2,370
13,000 Morgan Stanley Group,
5.54%*, 3/15/01** 13,000
5,000 PHH Corp.,
5.34%*, 8/21/96** 4,999
6,000 PNC Bank,
5.40%*, 3/4/97** 5,995
505 Perfection Corp.,
5.50%*, 4/1/09** 505
2,250 Pomeroy Investments,
5.55%*, 9/1/15**, LOC
Firemans Fund 2,250
5,000 Republic New York Corp.,
5.54%*, 1/1/99** 5,000
14,600 Sea River Maritime, Inc.,
5.43%*, 10/1/11** 14,600
7,000 Morgan Stanley,
5.61%*, 1/31/97** 7,004
500 Tube Products,
5.50%*, 11/1/09** 500
- ----------------------------------------------------------
TOTAL CORPORATE NOTES 187,035
- ----------------------------------------------------------
- ----------------------------------------------
MUNICIPAL BONDS (1.1%)
6,000 Industrial Development
Authority of Bedford
County, Society Generale
Bank, 5.90%*, 12/1/25** 6,000
1,030 Ottawa County Michigan,
Series C, Old Kent Bank,
5.65%*, 3/1/16** 1,030
- ----------------------------------------------------------
TOTAL MUNICIPAL BONDS 7,030
- ----------------------------------------------------------
- ----------------------------------------------
U.S. GOVERNMENT AGENCIES (22.4%)
FEDERAL HOME LOAN BANK:
5,000 5.81%, 8/26/96 5,008
6,000 5.38%, 3/14/97 6,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE> 16
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands)
INSTITUTIONAL MONEY MARKET FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
FEDERAL HOME LOAN MORTGAGE CORP.:
$ 6,000 5.10%, 8/23/96 $ 5,999
3,500 5.69%, 3/27/97 3,500
FEDERAL NATIONAL MORTGAGE ASSOC.:
7,000 5.05%, 6/3/96 6,968
5,000 5.81%, 9/27/96 5,000
10,000 5.60%, 11/1/96 10,007
25,000 5.31%, 5/25/99 25,000
33,000 5.29%, 7/26/99 33,000
STUDENT LOAN MARKETING ASSOC.:
1,000 5.50%, 11/27/96 1,001
1,190 5.48%, 10/30/97 1,193
4,000 5.32%, 9/28/98 4,000
6,000 5.34%, 1/13/99 5,999
32,500 5.35%, 8/2/99 32,500
- ----------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES 145,175
- ----------------------------------------------------------
- ----------------------------------------------
U.S. TREASURY NOTES (1.0%)
6,000 8.50%, 4/15/97 6,162
- ----------------------------------------------------------
TOTAL U.S. TREASURY NOTES 6,162
- ----------------------------------------------------------
TOTAL INVESTMENTS 643,400
- ----------------------------------------------------------
- ----------------------------------------------
REPURCHASE AGREEMENTS (4.5%)
29,004 Donaldson-Lufkin Jenrette,
(Collateralized by
$399,255 various U.S.
Treasury Securities,
0.00%, 5/15/96-11/15/05,
market value $29,584) 29,004
- ----------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS 29,004
- ----------------------------------------------------------
TOTAL (COST $672,404)(A) $672,404
==========================================================
</TABLE>
- ---------------
Percentages indicated are based on net assets of $647,655.
(a) Cost for federal income tax and financial reporting purposes are the same.
* Variable rate securities having liquidity sources through bank letters of
credit or other liquidity arrangements. The interest rate which will change
periodically is based upon bank prime rates or an index of market interest
rates. The rate reflected on the Schedule of Investments is the rate in
effect at April 30,1996.
** Put and demand features exist allowing the fund to require the repurchase of
the instrument within variable time periods ranging from daily, weekly,
monthly or semi-annually.
LOC -- Letter of credit
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE> 17
Schedule of Investments
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
TAX-FREE MONEY MARKET FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
- ----------------------------------------------
MUNICIPAL BONDS (99.3%)
ALABAMA (0.7%):
$ 2,210 Ardmore IDR,
4.35%*, 6/1/04**, LOC Bank
One $ 2,210
----------
ARIZONA (1.3%):
1,500 Pima County IDR,
4.25%*, 9/1/09**, LOC
National City Bank 1,500
2,470 State Transportation
Excise Tax,
4.50%, 7/1/96, AMBAC 2,473
----------
3,973
----------
CALIFORNIA (6.2%):
6,000 Housing Finance,
3.50%, 8/1/27**, GIC
Bayerische Landesbank 6,000
2,050 Los Angeles County
Transportation,
Prerefunded,
7.50%, 7/1/01** 2,078
3,500 State Schools Cash Reserve,
4.75%, 7/3/96 3,506
7,000 State Schools Cash Reserve,
4.50%, 12/20/96 7,030
----------
18,614
----------
DISTRICT OF COLUMBIA (0.3%):
1,000 District of Columbia,
Prerefunded,
7.88%, 6/1/96 1,024
----------
FLORIDA (8.4%):
9,700 Dade County Housing Finance
Authority,
3.40%*, 8/1/05, LOC
John Hancock 9,700
2,500 Hillsborough County,
Ringhaven,
4.25%, 12/1/11, LOC Mellon
Bank 2,500
1,900 Housing Finance,
Prerefunded,
5.50%, 11/1/96 1,916
4,500 Housing Finance Authority of
Broward County,
4.35%*, 12/1/29, LOC
John Hancock 4,500
1,000 Immokalee Water & Sewer
District,
3.65%, 8/30/96 1,000
<CAPTION>
SHARES OR
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
$ 2,000 Lee County Housing Finance
Authority,
3.74%*, 9/1/29, LOC
Bayerische Landesbank $ 2,000
3,000 Manatee County Housing,
3.74%*, 7/1/29**, LOC
Bayerische Landesbank 3,000
625 Orlando, Orange County,
Prerefunded,
7.50%, 7/1/96 641
----------
25,257
----------
GEORGIA (3.2%):
2,020 State Residential,
3.80%*, 6/1/96**, First
National Bank of Chicago 2,020
7,140 State Residential,
3.80%*, 6/1/96**, First
National Bank of Chicago 7,140
575 Warner Robins, Water &
Sewer, Prerefunded,
7.76%, 7/1/96 590
----------
9,750
----------
ILLINOIS (8.1%):
3,000 Chicago IDR,
4.10%*, 11/1/05, LOC NBD
Bank 3,000
1,050 Development IDR,
4.25%*, 11/1/08, LOC ABN
Amro Bank 1,050
1,600 Development, Kindlen,
4.30%*, 5/1/06, LOC
La Salle National Bank 1,600
3,600 Financial Authority,
4.10%*, 12/1/05, LOC
La Salle National Bank 3,600
5,000 Health Facility,
4.15%*, 8/1/15, LOC, First
National Bank of Chicago 5,000
2,800 Kankakee County IDR,
4.30%*, 12/1/07, LOC Societe
Generale 2,800
2,470 Lincolnwood IDR,
4.25%*, 2/1/04, LOC
Bank One 2,470
1,785 River Grove IDR,
4.25%*, 2/1/03, LOC
Bank One 1,785
1,000 State,
7.75%, 6/1/96 1,023
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE> 18
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
TAX-FREE MONEY MARKET FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
$ 1,975 Tinley Park Multi-Family
Revenue,
4.10%*, 12/1/08, LOC
La Salle National Bank $ 1,975
----------
24,303
----------
INDIANA (9.4%):
1,575 Crawfordsville,
4.30%*, 4/1/30, LOC Federal
Home Loan Bank 1,575
4,874 Goshen Community Schools,
4.00%, 12/31/96 4,885
2,600 Greenwood IDR,
4.35%*, 2/1/16, LOC
Bank One 2,600
1,750 Hamilton Southeastern
Schools,
3.90%, 12/31/96 1,753
1,050 Indianapolis, Calderon,
4.35%*, 2/1/99, LOC
Bank One 1,050
835 Indianapolis Local,
6.64%, 12/1/96 835
1,850 Munster School,
4.00%, 6/28/96 1,852
2,020 Scottsburg,
4.40%*, 10/1/09, LOC PNC
Bank 2,020
4,100 Seymour,
4.25%*, 1/1/31, LOC Federal
Home Loan Bank 4,100
500 Seymour,
4.25%*, 1/1/31, LOC Federal
Home Loan Bank 500
935 Syracuse Economic
Development Revenue,
4.30%*, 12/1/05, LOC Bank
One Indiana 935
5,000 Tippecanoe School Corp.,
3.66%, 12/30/96, LOC Bank
One 5,002
1,130 Wakarusa Economic
Development,
4.30%*, 7/1/03, LOC
Bank One 1,130
----------
28,237
----------
IOWA (1.4%):
4,325 City of Urbandale,
3.75%*, 10/1/15, LOC
Principle 4,325
----------
<CAPTION>
SHARES OR
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
KANSAS (0.8%):
$ 2,300 Fairway,
3.75%*, 11/1/14, LOC
Principle $ 2,300
----------
KENTUCKY (7.2%):
2,475 Boone County,
4.40%*, 12/1/09, LOC PNC
Bank 2,475
5,000 Carroll, Ladder Co. Project,
4.45%*, 9/1/10, LOC National
City Bank 5,000
3,190 Covington,
4.15%*, 4/1/05, LOC
Fifth Third Bank 3,190
1,400 Lewis County ,
4.30%*, 12/1/03, LOC
Fifth Third Bank 1,400
2,000 Louisville, Zeochem,
4.05%*, 9/1/01, LOC National
City Bank 2,000
3,000 Pendelton,
4.00%, 7/1/96, LOC
Pittsburgh National Bank 3,000
1,500 Rural Economic Development
Authority,
4.30%*, 9/1/10, LOC
Westdeutsche Landesbank 1,500
3,000 Somerset Glen Oak,
4.35%*, 4/1/06, LOC
Bank One 3,000
----------
21,565
----------
LOUISIANA (2.7%):
8,000 St. Tammany, Public Finance
Authority,
4.25%*, 6/1/05, LOC Banque
Paribas 8,000
----------
MAINE (3.9%):
1,000 South Portland,
3.73%, 6/27/96 1,000
770 State GO,
5.90%, 7/1/96 772
10,000 State General Anticipation
Notes,
3.90%, 5/15/96 10,001
----------
11,773
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE> 19
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
TAX-FREE MONEY MARKET FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
MICHIGAN (0.9%):
$ 1,250 Detroit, Wayne County School
District,
4.50%, 5/1/96, LOC
St. Aid $ 1,250
1,300 State Strategic,
3.85%*, 5/1/05, LOC Comerica 1,300
----------
2,550
----------
MINNESOTA (2.1%):
3,330 St.Cloud Housing, Webway,
4.35%*, 11/1/05, LOC
National City Bank 3,330
3,000 School Districts Tax & Aid,
4.25%, 9/18/96 3,002
----------
6,332
----------
MISSOURI (4.8%):
1,200 Cuba IDR,
4.35%*, 10/1/05, LOC Bank
One 1,200
3,600 Kansas City,
3.75%*, 5/1/15, LOC
Principle 3,600
4,600 St. Louis, IDR,
4.35%*, 2/1/07, LOC
John Hancock 4,600
5,000 St. Louis Transportation,
4.50%, 6/20/96 5,005
----------
14,405
----------
NEVADA (0.9%):
1,375 Director State Department
Business & Industry,
4.35%*, 8/1/01, LOC
Bank One Milwaukee 1,375
1,290 Director State Department
Business & Industry,
4.35%*, 8/1/14, LOC
Bank One Milwaukee 1,290
----------
2,665
----------
OHIO (11.0%):
420 Akron Bath Copley Township
Hospital,
4.25%*, 5/1/13, LOC National
City Bank 420
2,000 Avon,
4.16%, 7/11/96 2,002
<CAPTION>
SHARES OR
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
$ 1,000 Chillicothe,
4.04%, 7/5/96 $ 1,000
2,250 Franklin County IDR,
4.30%*, 6/1/10, LOC
Fifth Third Bank 2,250
2,800 Housing Finance Authority,
4.15%*, 3/1/15, LOC
Bayerische Landesbank 2,800
4,000 Housing Finance Authority,
4.15%*, 3/1/15, LOC
Bayerische Landesbank 4,000
3,700 Housing Finance Authority,
4.15%*, 3/1/15, LOC
Bayerische Landesbank 3,700
1,700 Hudson,
4.20%, 8/15/96 1,701
1,660 Lebanon, Bond Anticipation
Note,
3.92%, 12/20/96 1,663
2,550 Lorain County Elyria Home,
4.15%*, 6/1/12, LOC
Fifth Third Bank 2,550
1,200 Mahoning County,
4.25%*, 4/1/17, LOC
Bank One 1,200
3,255 Marion County,
4.25%*, 11/1/21, LOC Bank
One 3,255
775 Pickerington,
4.15%, 6/28/96 775
1,000 Plain Township,
4.39%, 9/17/96 1,002
1,400 Portage County, Bond
Anticipation Note,
4.15%, 7/11/96 1,400
300 Scioto County VHA, AMBAC,
4.10%*, 12/1/25, LOC Mellon
Bank 300
800 Strongsville,
3.90%, 12/26/96 801
400 Student Loan Funding Corp.,
4.55%*, 12/29/98 400
735 Summit County,
3.95%, 6/1/96 735
1,000 Wilmington,
3.91%, 12/27/96 1,001
----------
32,955
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE> 20
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
TAX-FREE MONEY MARKET FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
OREGON (0.7%):
$ 2,000 Klamath Falls,
Secured to Maturity,
4.40%, 5/1/96** $ 2,000
----------
PENNSYLVANIA (0.3%):
1,000 E. Lycoming,
4.25%, 6/28/96 1,000
----------
TENNESSEE (2.1%):
6,200 Hawkins County, Kingston,
4.65%*, 8/1/09, LOC Bankers
Trust 6,200
----------
TEXAS (7.8%):
4,140 Harris County,
4.35%*, 10/1/16, LOC Morgan
Guarantee 4,140
1,000 State GO,
6.70%, 12/1/96 1,017
5,000 State Transportation,
4.75%, 8/30/96 5,011
9,200 Tyler Health Facilities,
3.35%, 6/14/96, LOC Banque
Parabas 9,200
4,000 Veteran Housing Association,
3.90%, 11/6/96** 4,000
----------
23,368
----------
UTAH (2.5%):
7,500 Tooele County,
3.35%, 5/23/96, LOC
Union Bank Switzerland 7,500
----------
WASHINGTON (0.3%):
1,000 Pierce County,
3.90%, 11/1/96, LOC Deutsche
Bank 1,000
----------
WISCONSIN (11.1%):
1,030 Appleton IDR,
4.35%*, 8/1/01, LOC
Bank One Milwaukee 1,030
1,450 Berlin IDR,
4.35%*, 4/1/07, LOC
Bank One 1,450
<CAPTION>
SHARES OR
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
$ 5,980 Evansville,
4.35%*, 12/1/08, LOC Bank
One $ 5,980
3,635 Fredonia IDR,
4.35%*, 4/1/06, LOC
Bank One 3,635
2,800 Janesville,
4.40%*, 9/1/07, LOC General
Electric Credit Corp. 2,800
3,870 Kenosha Metalmen,
4.35%*, 9/1/14, LOC
Bank One of Milwaukee 3,870
1,000 Milwaukee Metro Sewer,
Prerefunded,
9.00%, 5/1/96 1,000
1,600 Oak Creek,
4.35%*, 12/1/07, LOC Bank
One 1,600
1,200 Oshkosh, Schloesser,
4.35%*, 3/1/02, LOC
Bank One 1,200
3,000 Plymouth IDR,
4.35%*, 8/1/04, LOC Rabobank 3,000
1,500 Prairie Du Chien,
4.30%*, 6/1/02, LOC La Salle
National Bank 1,500
2,000 Waukesha IDR,
4.35%*, 12/1/07, LOC Bank
One 2,000
4,000 Wausaw School District,
4.05%, 9/20/96 4,001
----------
33,066
----------
WYOMING (1.2%):
3,700 Gillette County,
3.20%, 5/10/96, LOC Deutsche
Bank 3,700
- ------------------------------------------------------------
TOTAL MUNICIPAL BONDS 298,072
- ------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE> 21
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
TAX-FREE MONEY MARKET FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
- ----------------------------------------------
INVESTMENT COMPANIES (0.1%)
155,000 Federated #15 Tax-Free Money
Market Fund $ 155
1,000 Fidelity Ohio Tax-Free Fund 1
- ------------------------------------------------------------
TOTAL INVESTMENT COMPANIES 156
- ------------------------------------------------------------
TOTAL (COST $298,228)(A) $ 298,228
============================================================
</TABLE>
- ---------------
Percentages indicated are based on net assets of $300,129.
(a) Cost and value for federal income tax and financial reporting purposes are
the same.
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity agreements. The interest rate, which
will change periodically, is based upon bank prime rates or an index of
market interest rates. The rate reflected on the Schedule of Investments is
the rate in effect at April 30, 1996.
** Put and demand features exist allowing the Fund to require the repurchase of
the instrument within variable time periods including daily, weekly, monthly,
or semi-annually.
AMBAC -- AMBAC Indemnity Corp.
GO -- General Obligation
IDR -- Industrial Development Revenue
LOC -- Letter of Credit
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE> 22
Schedule of Investments
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
OHIO MUNICIPAL MONEY MARKET FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
- ----------------------------------------------
MUNICIPAL BONDS (99.4%)
OHIO (99.4%):
$ 6,000 Akron, 3.51%, 12/19/96 $ 6,001
3,565 Akron Sewer System Revenue,
4.20%*, 12/4/14**, LOC
Credit Suisse 3,565
2,000 Archbold, 4.31%, 3/27/97 2,010
3,000 Auglaize County, 4.35%*,
5/1/03**, LOC Bank One 3,000
870 Avon, 4.14%, 7/3/96 870
3,000 Avon Schools, 3.94%, 7/11/96 3,003
1,200 Barberton, 4.86%, 5/16/96 1,200
970 Barberton, 4.05%, 10/4/96 970
500 Bay Village, 4.00%, 6/20/96 500
6,800 Beavercreek Local School,
4.03%, 7/18/96 6,808
1,750 Bedford Heights, IDR,
4.10%*, 12/1/04**, LOC
National City Bank 1,750
960 Bellview Long Term GO,
3.75%, 10/22/96 960
1,000 Belmont County, 4.34%,
8/30/96 1,001
1,000 Belmont County, 4.09%,
11/26/96 1,002
1,550 Belmont County, 3.89%,
12/19/96 1,553
1,525 Berea, 4.20%, 7/18/96 1,526
475 Berea, 3.85%, 10/24/96 475
1,165 Blue Ash IDR, 3.40%, 9/1/96,
LOC Society National Bank 1,165
2,000 Bowling Green, 4.30%,
9/12/96 2,002
2,600 Bowling Green IDR, 4.30%*,
8/1/09**, LOC General
Electric Capital Corp. 2,600
950 Brecksville, 4.59%, 5/2/96 950
1,235 Brecksville, 4.10%, 8/9/96 1,235
6,400 Brecksville-Broadview
Heights, City School
District, 3.90%, 1/17/97 6,415
540 Brooklyn Heights IDR,
4.35%*, 2/1/02**, LOC Bank
One 540
1,000 Butler County, 4.30%*,
11/1/20** 1,000
1,450 Cardington, 4.42%, 9/12/96 1,453
3,500 Centerville Health Bethany,
4.00%*, 11/1/13**, LOC
Pittsburgh National Bank 3,500
<CAPTION>
SHARES OR
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
$ 2,325 Chillicothe IDR, 4.20%*,
10/1/15**, LOC Huntington
National Bank $ 2,325
400 Cincinnati, 4.60%, 12/1/96 403
7,400 Cincinnati & Hamilton IDR,
3.70%*, 5/1/15**, LOC
Pittsburgh National Bank 7,400
480 Circleville, 4.45%, 6/13/96 480
935 Clark County, 3.93%, 7/5/96 935
200 Clark County IDR, 3.65%,
10/1/96, LOC Huntington
National Bank 200
790 Clark County, 3.65%,
10/1/96, LOC Huntington
National Bank 790
1,000 Clark County, 3.65%,
10/1/96, LOC Huntington
National Bank 1,000
500 Cleveland City School
District, 4.50%, 6/1/96,
AMBAC 500
7,000 Cleveland-Cuyahoga County
IDR, 4.10%*, 12/1/15**,
LOC Credit Locale De
France 7,000
500 Cleveland Heights, 4.15%,
8/29/96 500
1,530 Cleveland Water Works,
7.88%, 1/1/16** 1,604
6,100 Clinton County IDR, 4.15%*,
6/1/11**, LOC Wachovia
Bank 6,100
500 Clinton County IDR, 4.30%*,
11/1/99**, LOC Wachovia
Bank 500
3,150 Columbus, 3.85%, 9/15/96 3,151
10,000 Columbus City School
District, 3.70%, 6/28/96 10,002
750 Columbus Sewer, 8.00% 6/1/96 768
600 Cuyahoga County, 3.60%
10/15/96 600
3,325 Cuyahoga County IDR, 4.25%*,
12/1/12**, LOC National
City Bank 3,325
300 Cuyahoga County IDR, 4.15%*,
12/1/98**, LOC National
City Bank 300
4,180 Cuyahoga County IDR, 4.07%*,
12/7/05**, LOC National
City Bank 4,180
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE> 23
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
OHIO MUNICIPAL MONEY MARKET FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
$ 380 Cuyahoga County IDR, 4.60%*,
11/2/09**, LOC National
City Bank $ 380
2,700 Cuyahoga County Revenue,
4.15%*, 4/1/12**, LOC
Union Bank of Switzerland 2,700
2,500 Cuyahoga Falls IDR, 4.30%*,
9/1/14**, LOC Fifth Third
Bank 2,500
3,400 Cuyahoga Falls IDR, 4.30%*,
5/1/15**, LOC Fifth Third
Bank 3,400
8,000 Dayton, 4.10%, 7/29/96 8,008
1,340 Defiance County IDR, 4.30%*,
12/1/97**, LOC Pittsburgh
National Bank 1,340
900 Delaware County IDR, 3.60%*,
12/1/04**, LOC Wells Fargo 900
1,800 East Palestine City School
District, 3.50%, 2/28/97 1,802
1,575 Elyria, 4.18%, 7/25/96 1,576
980 Elyria, 3.74%, 3/20/97 981
950 Elyria City School District,
4.13%, 4/10/97 953
900 Erie County, 4.17%, 7/19/96 900
1,075 Euclid IDR, 3.60%, 10/15/96,
LOC Bank One 1,075
2,500 Fairfield County, 4.08%,
8/30/96 2,501
767 Fairfield County, 4.75%,
9/4/96 768
900 Findlay, 4.75%, 6/11/96 901
809 Franklin, 3.96%, 4/9/97 810
1,485 Franklin County, 3.80%,
5/1/96, LOC Bank One 1,485
2,205 Franklin County IDR, 3.55%,
9/1/96, LOC Society
National Bank 2,205
3,665 Franklin County IDR, 3.60%*,
12/1/02**, LOC Huntington
National Bank 3,665
1,560 Franklin County IDR, 4.30%*,
10/1/15**, LOC Fifth Third
Bank 1,560
7,000 Franklin County IDR, 3.60%*,
12/1/15**, LOC Bank One 7,000
2,600 Franklin County IDR, 4.15%*,
12/1/16**, LOC Fifth Third
Bank 2,600
<CAPTION>
SHARES OR
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
$ 700 Franklin County IDR, 4.35%*,
4/1/19**, LOC Huntington
National Bank $ 700
5,600 Franklin County, Children's
Hospital, 4.30%*,
12/1/14** 5,600
1,860 Franklin County Health Care
Facilities, 4.15%*,
6/1/15**, LOC Fifth Third
Bank 1,860
1,000 Franklin County Hospital
Revenue, 4.10%*, 5/1/15**,
LOC NBD Bank 1,000
2,575 Gallia County IDR, 3.70%*,
12/15/10**, LOC Fifth
Third Bank 2,575
1,100 Geauga County, 3.79%,
12/2/96 1,101
4,000 Geauga County, 3.94%,
12/12/96 4,006
1,100 Geauga County Park, 4.04%,
12/12/96 1,102
1,408 Georgetown School District,
3.84%, 12/19/96 1,409
940 Granville, 4.06%, 11/19/96 941
525 Greene County, 4.00%,
7/18/96 525
3,300 Greene County IDR, 3.60%*,
8/1/09**, LOC Pittsburgh
National Bank 3,300
3,335 Hamilton County IDR, 4.30%*,
12/1/04**, LOC Fifth Third
Bank 3,335
2,605 Hamilton County IDR, 4.30%*,
12/1/08**, LOC Fifth Third
Bank 2,605
1,290 Hancock County, 4.30%*,
6/1/96** 1,290
1,083 Harrison, 3.79%, 1/10/97 1,085
3,800 Highland Heights, 3.89%,
12/19/96 3,804
865 Hilliard IDR, 4.30%*,
12/1/14**, LOC Fifth Third
Bank 865
1,245 Holmes County, 4.15%,
5/21/96 1,245
500 Holmes County IDR, 4.25%*,
4/1/09**, LOC Rabobank 500
5,000 Housing Finance Authority,
3.40%, 9/1/28**, GNMA 5,000
16,530 Housing Finance Authority,
4.35%*, 3/1/22**, LOC
Bayerische Landesbank 16,530
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE> 24
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
OHIO MUNICIPAL MONEY MARKET FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
$ 1,076 Huber Heights, 3.75%, 4/1/97 $ 1,077
1,000 Independence, 3.98%, 9/6/96 1,000
2,000 Indian Lake, 4.14%, 4/9/97 2,004
1,840 Licking County IDR, 4.35%*,
4/1/05**, LOC Bank One 1,840
1,455 Lorain County IDR, 3.60%,
10/15/96, LOC Fifth Third
Bank 1,455
2,300 Lorain County IDR, 4.15%*,
6/1/12**, LOC Fifth Third
Bank 2,300
2,000 Lorain County Hospital,
4.00%*, 5/1/01**, LOC
Pittsburgh National Bank 2,000
1,050 Lorain County IDR, 4.30%*,
6/1/09**, LOC Bank One 1,050
1,195 Lucas County, 4.00%, 6/1/96 1,195
565 Lucas County, 4.25%*,
3/1/06**, LOC National
City Bank 565
425 Lucas County IDR, 4.25%*,
12/1/07**, LOC National
City Bank 425
6,000 Lucas County, 4.25%*,
12/1/12**, LOC National
City Bank 6,000
390 Mahoning County IDR, 4.15%*,
6/1/03**, LOC Bank One 390
2,850 Mahoning County, 4.25%*,
4/1/17**, LOC Bank One 2,850
4,400 Mahoning County, 4.00%*,
3/15/20**, LOC Bank One 4,400
2,000 Mahoning County, 4.15%*,
12/1/21**, LOC PNC Bank 2,000
860 Maple Heights, 3.50%,
12/12/96 861
895 Marion County Hospital,
4.25%*, 4/1/17**, LOC Bank
One 895
5 Marion County Hospital Pool,
4.25%*, 3/1/16**, LOC Bank
One 5
630 Marion County Hospital Pool,
4.25%*, 5/1/19**, LOC Bank
One 630
241 Marion County Hospital Pool,
4.25%*, 8/1/20**, LOC Bank
One 241
<CAPTION>
SHARES OR
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
$ 1,270 Marion County Hospital Pool,
4.25%*, 10/1/22**, LOC
Bank One $ 1,270
550 Mayfield Heights, 4.00%,
7/5/96 550
850 Mayfield Heights, 4.00%,
7/25/96 850
3,500 Medina County, 4.25%,
10/10/96 3,504
700 Middlefield, 3.49%, 2/28/97 700
500 Milford, 4.27%, 4/14/96 501
335 Montgomery County IDR,
3.80%, 12/15/04**, LOC
Bank One 335
685 Montgomery County, 3.75%,
11/1/96, MBIA 685
875 Montgomery County Health
Care Facility, 4.15%*,
9/1/01**, LOC Society
National Bank 875
5,000 Montgomery County IDR,
3.50%, 7/5/96, LOC
Northern Trust 5,000
2,830 Montgomery IDR, 4.60%*,
5/2/05**, LOC Huntington
National Bank 2,830
1,820 Muskingum County, 4.60%*,
1/1/01**, LOC Huntington
National Bank 1,820
2,000 Muskingum County Health,
7.50%, 3/1/12** 2,101
200 North Baltimore, 4.65%,
4/17/97 201
10,000 North Olmsted, 4.67%,
6/20/96 10,006
2,000 Northeastern Local School,
4.10%, 6/11/96 2,001
1,300 Northwood, 4.70%, 8/1/96 1,302
1,650 Orrville, 4.00%*, 12/1/07**,
LOC National City Bank 1,650
200 Orrville IDR, 4.15%*,
9/1/00**, LOC National
City Bank 200
250 Orrville IDR, 4.15%*,
8/1/03**, LOC National
City Bank 250
1,200 Paulding County IDR, 4.15%*,
3/1/99**, LOC Fifth Third
Bank 1,200
1,206 Pepper Pike, 4.00%, 9/27/96 1,208
750 Perrysburg, 4.65%, 8/22/96 751
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE> 25
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
OHIO MUNICIPAL MONEY MARKET FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
$ 590 Pickerington, 4.07%, 8/9/96 $ 590
1,200 Pickerington, 4.00%,
11/26/96 1,201
3,500 Pike County IDR, 4.30%*,
6/1/13**, LOC Fifth Third 3,500
2,090 Portsmouth IDR, 4.35%*,
10/1/02**, LOC Bank One 2,090
2,000 Portsmouth, 4.30%*,
12/1/09**, LOC National
City Bank 2,000
2,720 Richland County, 4.35%*,
12/1/16**, LOC Huntington
National Bank 2,720
3,500 Rickenbacker Port Authority,
4.25%*, 12/1/10**, LOC
Bank One 3,500
580 Rossford, 4.80%, 1/2/97 583
2,530 Salem Hospital Facility,
4.00%*, 11/1/11**, LOC PNC
Bank 2,530
2,000 School District Cash Flow,
4.52%, 6/28/96 2,002
2,300 Seneca County, St. Francis
Hospital, 4.20%*,
12/15/13**, LOC National
City Bank 2,300
1,560 Seven Hills, 3.95%, 5/9/96 1,560
1,800 Sharonville IDR, 4.30%*,
10/1/98**, LOC Fifth Third
Bank 1,800
6,155 Sharonville IDR, 4.25%*,
9/1/14**, LOC National
City Bank 6,155
585 Sheffield Village, 4.50%,
9/20/96 586
500 Stark County, 4.18%, 6/20/96 500
2,390 Stark County, 4.25%*,
3/1/13** 2,390
5,000 State Air Quality
Development Revenue,
3.15%, 5/8/96, FGIC 5,000
2,000 State Air Quality
Development Revenue,
3.30%, 5/8/96, LOC Toronto
Dominion 2,000
2,700 State Air Quality
Development Revenue,
3.20%, 5/9/96, FGIC 2,700
4,350 State Air Quality
Development Revenue,
3.45%, 5/14/96, LOC
Toronto Dominion 4,350
<CAPTION>
SHARES OR
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
$ 1,000 State Air Quality
Development Revenue,
3.45%, 5/15/96, FGIC $ 1,000
700 State Air Quality
Development Revenue,
3.30%, 5/17/96, FGIC 700
1,700 State Air Quality
Development Revenue,
3.45%, 5/17/96, FGIC 1,700
1,500 State Air Quality
Development Revenue,
3.30%, 5/22/96, FGIC 1,500
5,000 State Air Quality
Development Revenue,
3.20%, 6/13/96, FGIC 5,000
3,800 State Air Quality
Development Revenue,
3.25%, 6/14/96, FGIC 3,800
4,000 State Air Quality
Development Revenue,
3.50%, 7/8/96, LOC Toronto
Dominion 4,000
7,500 State Air Quality
Development Revenue,
3.50%, 7/9/96, LOC Toronto
Dominion 7,500
1,175 State Air Quality
Development Revenue,
4.25%, 2/1/14**, LOC
Canadian Imperial Bank 1,177
5,500 State Air Quality
Development Revenue,
4.75%, 5/1/18** LOC Union
Bank of Switzerland 5,500
13,600 State Air Quality
Development Revenue,
4.15%*, 4/1/28**, LOC
Societe Generale 13,600
440 State IDR, 4.30%, 6/1/00**,
LOC Pittsburgh National
Bank 440
1,000 State Environmental IDR,
3.60%*, 12/1/01**, LOC
Pittsburgh National Bank 1,000
1,000 State Higher Education,
4.25%*, 9/1/09**, LOC
National City Bank 1,000
2,200 State Higher Education,
4.15%*, 4/1/22** 2,200
700 State Highway, 5.70%,
5/15/96 701
210 State IDR, 4.25%*, 7/1/02**,
LOC Bank One 210
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE> 26
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
OHIO MUNICIPAL MONEY MARKET FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
$ 2,105 State IDR, 4.25%*, 1/2/03**,
LOC Bank One $ 2,105
390 State IDR, 4.25%**,
1/2/03**, LOC Bank One 390
995 State IDR, 4.25%*, 6/7/06**,
LOC National City Bank 995
950 State IDR, 4.25%*, 7/1/07**,
LOC Bank One 950
830 State IDR, 4.25%*,
12/1/11**, LOC Bank One 830
720 State IDR, 4.25%*, 6/1/16**,
LOC National City Bank 720
2,500 State IDR, 4.35%*, 6/1/20**,
LOC Bank of Cleveland 2,500
2,500 State IDR, 4.35%, 6/1/25**,
LOC Bank One 2,500
150 State Public Education,
5.20%, 6/1/96, LOC AMBAC 150
2,435 State Water Development
Authority, 3.35%, 5/1/96,
FGIC 2,435
1,500 State Water Development
Authority, 3.20%, 5/10/96,
FGIC 1,500
7,000 State Water Development
Authority, 3.20%, 6/12/96,
FGIC 7,000
5,000 State Water Development
Authority, 3.60%, 7/5/96,
LOC Toronto Dominion 5,000
5,000 State Water Development
Authority, 3.70%, 8/2/96,
LOC Toronto Dominion 5,000
500 State Water Division, 4.75%,
5/1/96, LOC Union Bank of
Switzerland 500
530 Stow School District, 3.72%,
8/1/96 530
3,952 Stow School District, 3.69%,
8/1/96 3,954
1,190 Streetsboro, 4.26%, 10/10/96 1,191
1,150 Strongsville, 4.20%, 9/12/96 1,151
40,185 Student Loan Funding Corp.,
Cincinnati, Student Loan
Revenue, 4.55%*,
12/29/98**, LOC Fuji 40,185
3,400 Student Loan Funding Corp.,
Cincinnati, 4.25%*,
1/1/07**, LOC NatWest 3,400
<CAPTION>
SHARES OR
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
$ 5,100 Student Loan Funding, Corp.
Cincinnati, 4.25%*,
1/1/07**, LOC NatWest $ 5,100
9,700 Student Loan Funding,
Cincinnati, 4.25%*,
1/1/07, LOC NatWest 9,700
1,290 Summit County, 4.25%, 6/6/96 1,290
445 Summit County, 3.35%, 9/1/96 445
515 Summit County IDR, 3.57%,
9/1/96**, LOC Bank One 515
255 Summit County IDR, 3.70%,
10/1/16**, LOC Bank One 255
400 Summit County IDR, 4.25%*,
11/1/01**, LOC Fifth Third
Bank 400
2,300 Summit County IDR, 4.51%*,
8/1/05**, Huntington
National Bank 2,300
650 Summit County IDR, 4.35%*,
9/1/01**, LOC Bank One 650
1,070 Summit County IDR, 4.35%*,
9/1/01**, LOC Bank One 1,070
1,775 Summit County IDR, 4.25%*,
9/1/11**, LOC Bank One 1,775
2,885 Summit County, 4.15%*,
7/1/99**, LOC Bank One 2,885
2,265 Summit County IDR, 4.25%*,
9/1/05**, LOC Bank ONe 2,265
3,180 Toledo, 3.90%, 6/1/96, LOC
Canadian Imperial Bank of
Commerce 3,181
5,220 Toledo, 4.38%, 12/1/96, LOC
Canadian Imperial Bank of
Commerce 5,247
1,000 Toledo, Lucas County, IDR,
3.30%, 5/17/96, LOC Bank
of Nova Scotia 1,000
1,000 Toledo, Lucas County, 3.20%,
5/10/96, LOC Bank of Nova
Scotia 1,000
2,800 Toledo, Lucas County,
4.30%*, 12/1/06** 2,800
1,145 Toledo, Lucas County Port
Authority, 4.35%*,
12/1/13**, LOC Old Kent
Bank 1,145
1,685 Troy Economic Development
Revenue, 4.35%, 9/4/96,
LOC Societe Generale 1,685
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
25
<PAGE> 27
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
OHIO MUNICIPAL MONEY MARKET FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
$ 500 Trumbull County, 4.00%,
10/10/96 $ 501
1,150 Trumbull County, 4.07%,
4/10/97 1,153
300 Trumbull County IDR, 4.30%*,
6/1/05**, LOC Pittsburgh
National Bank 300
7,000 Trumbull County IDR, 4.25%*,
12/1/06**, LOC Mellon Bank 7,000
750 Twinsburg IDR, 4.15%*,
7/1/98**, LOC National
City Bank 750
8,000 Twinsburg Ohio School
District, 4.50%, 6/6/96 8,005
1,955 Union County, 4.19%, 6/28/96 1,956
1,750 Vermilion, 4.20%*,
10/1/04**, LOC Bank One 1,750
1,000 Warren County, 4.10%,
9/1/96, LOC NBD Bank 1,000
1,000 Warren County, 4.58%, 9/5/96 1,003
1,950 Washington County, 3.88%,
12/19/96 1,953
600 Wauseon, 5.25%, 5/23/96 600
1,600 West Cleremont, 4.32%,
4/15/97 1,606
2,260 Westerville, 4.30%*,
12/1/11**, LOC National
City Bank 2,260
2,450 Westlake, 4.15%*, 3/1/02**,
LOC Bayerische Landesbank 2,450
6,650 Westlake IDR, 4.07%*,
7/2/08**, LOC National
City Bank 6,650
250 Westlake IDR, 3.75%,
11/1/96, LOC Huntington
National Bank 250
2,600 Williams County, 5.25%,
5/16/96 2,601
4,250 Williams County, 4.15%*,
11/1/08**, LOC NBD Bank 4,250
<CAPTION>
SHARES OR
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
<S> <C> <C> <C>
$ 1,985 Wilmington, 4.07%, 9/5/96 $ 1,988
715 Wilmington, 4.07%, 9/5/96 716
3,000 Wooster, 3.53%, 12/19/96 3,001
928 Wyoming, 4.19%, 7/10/96 928
- ------------------------------------------------------------
TOTAL MUNICIPAL BONDS 573,928
- ------------------------------------------------------------
- ----------------------------------------------
TOTAL INVESTMENT COMPANIES (0.0%)
128,666 Federated Ohio Municipal
Cash Trust Fund 129
- ------------------------------------------------------------
TOTAL INVESTMENT COMPANIES 129
- ------------------------------------------------------------
TOTAL (COST $574,057)(A) $ 574,057
============================================================
</TABLE>
- ---------------
Percentages indicated are based on net assets of $577,332.
(a) Cost for federal income tax and financial reporting purposes are the same.
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity agreements. The interest rate, which
will change periodically, is based upon bank prime rates or an index of
market interest rates. The rate reflected on the Schedule of Portfolio
Investments is the rate in effect at April 30, 1996.
** Put and demand features exist allowing the Fund to require the repurchase of
the investment within variable time periods of less than one year.
AMBAC -- AMBAC Indemnity Corp.
FGIC -- Financial Guarantee Insurance Company
FNMA -- Federal National Mortgage Assoc.
GECC -- General Electric Capital Corp.
GNMA -- Government National Mortgage Assoc.
GO -- General Obligation
IDR -- Industrial Development Revenue
LOC -- Letter of Credit
MBIA -- Insured by Municipal Bond Insurance Association
SEE NOTES TO FINANCIAL STATEMENTS.
26
<PAGE> 28
Schedule of Investments
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands)
LIMITED TERM INCOME FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
- ---------------------------------------------------------
ASSET BACKED SECURITIES (0.6%)
$ 1,000 American Express Asset
Backed,
6.05%, 7/15/97 $ 1,001
68 GMAC 1993 A Grantor Trust,
Class A,
4.15%, 3/15/98 68
- ----------------------------------------------------------
TOTAL ASSET BACKED SECURITIES 1,069
- ----------------------------------------------------------
- ---------------------------------------------------------
COMMERCIAL PAPER/
MASTER DEMAND NOTES (2.6%)
2,666 General Electric Capital
Corp.,
5.35%, 5/1/96 2,666
- ----------------------------------------------------------
- ----------------------------------------------
CORPORATE BONDS (13.2%)
AUTOMOTIVE (1.8%)
3,000 Ford Motor Credit,
7.13%, 12/1/97 3,065
--------
BROKERAGE SERVICES (2.0%):
1,500 Lehman Brothers Holdings,
5.50%, 6/15/96 1,500
2,000 Lehman Brothers Holdings,
5.75%, 11/15/98 1,955
1,800 Merrill Lynch,
5.00%, 12/15/96 1,800
--------
5,255
--------
BUSINESS EQUIPMENT (1.3%):
2,175 International Business
Machines Corp.,
6.38%, 11/1/97 2,175
--------
CHEMICALS (0.6%):
1,000 Dow Capital,
5.75%, 9/15/97 998
--------
FINANCIAL SERVICES (2.7%):
1,000 Associates Corp.,
6.88%, 1/15/97 1,008
1,500 Associates Corp.,
7.25%, 9/1/99 1,526
2,000 Norwest Corp.,
7.75%, 12/31/96 2,027
--------
4,561
--------
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
INDUSTRIAL GOODS & SERVICES (2.4%):
$ 2,000 Burlington Resources,
7.15%, 5/1/99 $ 2,030
2,000 WMX Technologies,
7.13%, 3/22/97 2,018
--------
4,048
--------
INSURANCE (1.2%):
2,000 International Lease Finance,
8.35%, 10/1/98 2,080
--------
UTILITIES -- GAS & ELECTRIC (1.2%):
1,000 Northern Illinois Gas,
5.50%, 2/1/97 995
1,000 Northern States Power,
5.50%, 2/1/99 970
--------
1,965
- ----------------------------------------------------------
TOTAL CORPORATE BONDS 24,147
- ----------------------------------------------------------
- ----------------------------------------------
U.S. GOVERNMENT AGENCIES (11.1%)
FEDERAL HOME LOAN MORTGAGE CORP.:
10,000 Discount Note, 5/13/96 9,981
GOVERNMENT NATIONAL MORTGAGE ASSOC.:
8,841 6.50%, 9/20/24 8,912
- ----------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES 18,893
- ----------------------------------------------------------
- ----------------------------------------------
U.S. TREASURY NOTES (76.0%)
1,000 5.63%, 10/31/97 996
4,000 7.38%, 11/15/97 4,081
5,000 5.25%, 12/31/97 4,942
2,000 5.13%, 2/28/98 1,968
22,000 7.88%, 4/15/98 22,725
67,000 8.25%, 7/15/98 69,906
23,000 5.13%, 11/30/98 22,428
2,000 6.38%, 3/31/01 1,994
- ----------------------------------------------------------
TOTAL U.S. TREASURY NOTES 129,040
- ----------------------------------------------------------
TOTAL (COST $176,844) (A) $175,815
==========================================================
</TABLE>
- ---------------
Percentages indicated are based on net assets of $169,815.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows (amounts in thousands):
<TABLE>
<S> <C> <C> <C>
Unrealized appreciation $ 375
Unrealized depreciation (1,404)
--------
Net unrealized depreciation $ (1,029)
=========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
27
<PAGE> 29
Schedule of Investments
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands)
INTERMEDIATE INCOME FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
- ---------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS (2.9%)
FEDERAL HOME LOAN MORTGAGE CORP.:
$ 1,699 6.00%, 10/25/03 $ 1,695
1,524 5.80%, 4/15/14 1,518
819 7.50%, 7/25/18 825
1,426 7.50%, 9/15/20 1,437
- ----------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS 5,475
- ----------------------------------------------------------
- ----------------------------------------------
COMMERCIAL PAPER (0.3%)
FINANCIAL SERVICES (0.3%):
630 General Electric Capital
Corp.,
5.35%, 5/1/96 630
- ----------------------------------------------------------
TOTAL COMMERCIAL PAPER 630
- ----------------------------------------------------------
- ----------------------------------------------
CORPORATE BONDS (25.9%)
AUTOMOTIVE (1.7%):
1,000 Ford Motor Co.,
9.00%, 9/15/01 1,091
1,000 General Motors Corp.,
9.63%, 12/1/00 1,104
1,000 General Motors Corp.,
9.13%, 7/15/01 1,090
--------
3,285
--------
BANKING (2.1%):
2,000 Republic NY Corp.,
7.75%, 5/15/02 2,075
2,000 Southtrust Bank, Birmingham,
5.58%, 2/6/06 1,912
--------
3,987
--------
BROKERAGE SERVICES (2.6%):
5,000 Lehman Brothers Sr.
Subordinated Note,
5.75%, 11/15/98 4,887
--------
CHEMICALS (0.6%):
1,000 Dow Chemical,
5.75%, 9/15/97 998
--------
FINANCIAL SERVICES (9.4%):
4,000 Bear Stearns Co.,
9.38%, 6/1/01 4,410
2,000 Commercial Credit,
5.88%, 1/15/01 1,880
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
$ 2,500 Merrill Lynch,
8.25%, 11/15/99 $ 2,616
1,000 Norwest Corp.,
7.75%, 12/31/96 1,014
3,000 Transamerica Financial,
8.75%, 10/1/99 3,176
2,000 Travelers Group,
6.88%, 6/1/25 1,947
3,000 U.S. West Capital Funding,
6.31%, 11/1/05 2,933
--------
17,976
--------
INDUSTRIAL GOODS & SERVICES (7.4%):
3,000 Amoco Canada,
7.25%, 12/1/02 3,060
1,000 EG&G, Inc.,
6.80%, 10/15/05 954
5,000 Honeywell,
6.60%, 4/15/01 4,944
3,000 Service Corp. International,
8.38%, 12/15/04 3,210
2,000 WMX Technologies,
7.13%, 3/22/97 2,018
--------
14,186
--------
RETAIL STORES (1.0%):
2,000 Dayton Hudson,
6.63%, 3/1/03 1,920
--------
UTILITIES -- TELECOMMUNICATIONS (1.1%):
2,000 GTE Corp. Notes,
9.10%, 6/1/03 2,185
- ----------------------------------------------------------
TOTAL CORPORATE BONDS 49,424
- ----------------------------------------------------------
- ----------------------------------------------
U.S. GOVERNMENT AGENCIES (3.5%)
FEDERAL NATIONAL MORTGAGE ASSOC.:
2,000 5.23%, 11/25/98 1,947
GOVERNMENT NATIONAL MORTGAGE ASSOC.:
5,100 6.00%, 4/15/26 4,649
- ----------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES 6,596
- ----------------------------------------------------------
- ----------------------------------------------
U.S. TREASURY BONDS (1.3%)
2,000 10.38%, 11/15/12 2,540
- ----------------------------------------------------------
TOTAL U.S. TREASURY BONDS 2,540
- ----------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
28
<PAGE> 30
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands)
INTERMEDIATE INCOME FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
- ----------------------------------------------
U.S. TREASURY NOTES (64.7%)
$ 3,000 6.50%, 5/15/97 $ 3,023
30,000 7.88%, 4/15/98 30,988
8,000 5.13%, 11/30/98 7,801
7,000 7.00%, 4/15/99 7,141
48,000 6.25%, 8/31/00 47,695
11,000 5.63%, 11/30/00 10,658
14,000 5.75%, 8/15/03 13,302
3,000 6.50%, 8/15/05 2,957
- ----------------------------------------------------------
TOTAL U.S. TREASURY NOTES 123,565
- ----------------------------------------------------------
TOTAL (COST $190,669)(A) $188,230
==========================================================
</TABLE>
- ---------------
Percentages indicated are based on net assets of $191,043.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized depreciation of securities as follows:
<TABLE>
<S> <C> <C> <C>
Unrealized appreciation $ 881
Unrealized depreciation (3,320)
--------
Net unrealized depreciation $ (2,439)
=========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
29
<PAGE> 31
Schedule of Investments
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands)
INVESTMENT QUALITY BOND FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
- ----------------------------------------------
ASSET BACKED SECURITIES (0.3%)
$ 429 Railcar Trust, Series 92-1,
7.75%, 6/1/04 $ 443
- ------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES 443
- ------------------------------------------------------------
- ----------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS (0.7%)
FEDERAL HOME LOAN MORTGAGE CORP.:
972 7.50%, 4/1/07 979
- ------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS 979
- ------------------------------------------------------------
- ----------------------------------------------
CORPORATE BONDS (27.4%)
AUTOMOTIVE (2.1%):
1,000 Ford Motor Co.,
9.00%, 9/15/01 1,091
1,000 Ford Motor Co.,
8.88%, 1/15/22 1,115
500 General Motors,
9.13%, 7/15/01 545
----------
2,751
----------
BANKING (2.8%):
600 BankAmerica Corp.,
9.63%, 2/13/01 665
1,020 First Union Corp.,
9.45%, 6/15/99 1,099
1,000 SunTrust Banks, Inc.,
7.38%, 7/1/02 1,015
1,000 Wachovia Corp.,
6.05%, 10/1/25 965
----------
3,744
----------
BROKERAGE SERVICES (2.8%):
500 Morgan Stanley,
8.00%, 10/15/96 505
1,000 Morgan Stanley,
5.63%, 3/1/99 974
1,000 Morgan Stanley,
8.88%, 10/15/01 1,087
1,200 Salomon Brothers,
6.70%, 12/1/98 1,186
----------
3,752
----------
DIVERSIFIED (1.0%):
1,400 Hanson Overseas,
6.75%, 9/15/05 1,332
----------
ELECTRICAL & ELECTRONIC (1.5%):
2,000 Philips Electronics,
7.13%, 5/15/25 1,967
----------
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
FINANCIAL SERVICES (2.6%):
$ 1,500 BHP Finance,
6.69%, 3/1/06 $ 1,435
1,020 Merrill Lynch,
8.25%, 11/15/99 1,067
1,000 Merrill Lynch,
6.00%, 3/1/01 964
----------
3,466
----------
HEALTH CARE (0.8%):
1,000 Columbia Health Care,
8.85%, 1/1/07 1,102
----------
INDUSTRIAL GOODS & SERVICES (6.5%):
2,000 Black & Decker,
7.50%, 4/1/03 2,027
2,000 Champion International,
7.75%, 9/1/25 1,913
1,500 EG&G, Inc.,
6.80%, 10/15/05 1,431
1,500 Georgia-Pacific,
9.95%, 6/15/02 1,704
1,000 Lubrizol Corp.,
7.25%, 6/15/25 960
500 Westvaco Corp.,
9.75%, 6/15/20 608
----------
8,643
----------
INSURANCE (0.8%):
1,000 Nationwide Mutual,
9.88%, 2/15/25 1,085
----------
MACHINERY & EQUIPMENT (0.9%):
1,100 John Deere Capital,
8.63%, 8/1/19 1,177
----------
OIL & GAS (0.7%):
1,000 Union Oil of California,
6.38%, 2/1/04 942
----------
PRINTING & PUBLISHING (0.8%):
1,000 Time Warner, Inc.,
9.15%, 2/1/23 1,048
----------
RETAIL STORES (0.7%):
1,000 Dayton Hudson,
6.40%, 2/15/03 948
----------
TOBACCO & TOBACCO PRODUCTS (1.6%):
2,000 Phillip Morris,
9.00%, 1/1/01 2,160
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
30
<PAGE> 32
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands)
INVESTMENT QUALITY BOND FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
UTILITIES -- TELECOMMUNICATIONS (1.8%):
$ 510 GTE Hawaiian Telephone
Service,
9.00%, 12/1/00 $ 518
510 MCI Communications,
7.63%, 11/7/96 514
1,000 New England Telephone &
Telegraph,
6.25%, 12/15/97 999
360 Northern Telecom Ltd.,
8.25%, 6/13/96 361
----------
2,392
- ------------------------------------------------------------
TOTAL CORPORATE BONDS 36,509
- ------------------------------------------------------------
- ----------------------------------------------
U.S. GOVERNMENT AGENCIES (31.1%)
FEDERAL HOME LOAN MORTGAGE CORP.:
1,486 6.00%, 2/1/11 1,408
FEDERAL NATIONAL MORTGAGE ASSOC.:
1,436 7.50%, 3/1/24 1,421
1,792 9.00%, 3/1/25 1,870
1,026 9.00%, 5/1/25 1,071
2,862 6.00%, 8/1/10 2,714
GOVERNMENT NATIONAL MORTGAGE ASSOC.:
2,466 6.50%, 2/15/09 2,409
1,307 9.00%, 2/15/17 1,368
1,311 8.50%, 9/15/17 1,352
1,062 9.00%, 12/15/19 1,112
1,540 9.00%, 1/15/20 1,618
2,548 7.50%, 8/15/22 2,521
1,446 8.50%, 8/15/22 1,495
1,052 8.50%, 2/15/23 1,087
879 6.50%, 7/15/23 829
187 7.50%, 8/15/23 185
570 7.50%, 8/15/23 564
1,345 7.00%, 10/15/23 1,300
1,361 7.50%, 10/15/23 1,345
2,005 6.50%, 1/15/24 1,874
4,457 7.50%, 1/15/24 4,408
1,850 7.50%, 5/15/24 1,829
5,611 8.50%, 12/15/24 5,795
2,040 6.50%, 4/15/26 1,909
- ------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES 41,484
- ------------------------------------------------------------
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
- ----------------------------------------------
U.S. TREASURY BONDS (7.7%)
$ 4,800 10.38%, 11/15/12 $ 6,096
4,000 7.50%, 11/15/24 4,217
- ------------------------------------------------------------
TOTAL U.S. TREASURY BONDS 10,313
- ------------------------------------------------------------
- ----------------------------------------------
U.S. TREASURY NOTES (30.0%)
2,100 6.13%, 3/31/98 2,103
1,750 5.00%, 2/15/99 1,697
2,500 7.75%, 1/31/00 2,614
2,000 7.13%, 2/29/00 2,050
12,510 6.13%, 9/30/00 12,371
19,300 6.38%, 8/15/02 19,133
- ------------------------------------------------------------
TOTAL U.S. TREASURY NOTES 39,968
- ------------------------------------------------------------
TOTAL (COST $133,082)(A) $ 129,696
============================================================
</TABLE>
- ---------------
Percentages indicated are based on net assets of $133,416.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized depreciation of securities as follows (amounts in thousands):
<TABLE>
<S> <C> <C> <C>
Unrealized appreciation $ 334
Unrealized depreciation (3,720)
----------
Net unrealized depreciation $ (3,386)
==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
31
<PAGE> 33
Schedule of Investments
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands)
GOVERNMENT BOND FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
- ----------------------------------------------
COMMERCIAL PAPER (3.2%)
FINANCIAL SERVICES (3.2%):
$ 849 General Electric Capital
Corp.,
5.35%, 5/1/96 $ 849
- ----------------------------------------------------------
TOTAL COMMERCIAL PAPER 849
- ----------------------------------------------------------
- ---------------------------------------------------------
U.S. TREASURY NOTES (78.8%)
2,000 7.88%, 4/15/98 2,066
9,500 6.88%, 8/31/99 9,658
3,000 7.75%, 11/30/99 3,132
1,000 6.25%, 8/31/00 994
1,000 5.75%, 10/31/00 974
4,000 6.50%, 5/15/05 3,944
- ----------------------------------------------------------
TOTAL U.S. TREASURY NOTES 20,768
- ----------------------------------------------------------
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
- ---------------------------------------------------------
U.S. TREASURY BONDS (16.3%)
$ 2,250 12.00%, 8/15/13 $ 3,181
1,000 8.13%, 8/15/19 1,115
- ----------------------------------------------------------
TOTAL U.S. TREASURY BONDS 4,296
- ----------------------------------------------------------
TOTAL (COST $26,763)(A) $ 25,913
==========================================================
</TABLE>
- ---------------
Percentages indicated are based on net assets of $26,354.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized depreciation of securities as follows (amounts in thousands):
<TABLE>
<S> <C> <C> <C>
Unrealized appreciation $ 9
Unrealized depreciation (859)
--------
Net unrealized depreciation $ (850)
=========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
32
<PAGE> 34
Schedule of Investments
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands)
GOVERNMENT MORTGAGE FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
- ---------------------------------------------------------
COMMERCIAL PAPER/
MASTER DEMAND NOTES (1.0%)
FINANCIAL SERVICES (1.0%):
$ 1,290 General Electric Capital
Corp.,
5.35%, 5/1/96 $ 1,290
- ---------------------------------------------------------
TOTAL COMMERCIAL PAPER/MASTER DEMAND
NOTES 1,290
- ---------------------------------------------------------
- ---------------------------------------------------------
U.S. GOVERNMENT
AGENCIES (95.0%)
FEDERAL HOME LOAN MORTGAGE CORP.:
178 9.50%, 8/1/21 189
1,884 4.76%, 12/1/23* 1,933
4,583 7.50%, 4/1/24 4,538
4,257 7.50%, 4/1/24 4,216
4,739 7.50%, 4/1/24 4,691
4,644 7.50%, 4/1/24 4,598
FEDERAL NATIONAL MORTGAGE ASSOC.:
8,757 6.00%, 8/1/10 8,306
1,181 8.00%, 5/1/17 1,192
1,859 9.50%, 6/1/22 1,970
2,098 8.00%, 2/1/23 2,119
9,445 6.50%, 4/1/24 8,889
3,247 8.50%, 8/1/24 3,334
2,262 8.50%, 6/1/25 2,322
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
GOVERNMENT NATIONAL MORTGAGE ASSOC.:
$ 4,757 9.50%, 4/15/10 $ 5,107
9,776 6.00%, 1/15/11 9,325
1,797 9.50%, 11/15/17 1,915
447 9.00%, 11/15/18 469
324 9.50%, 1/15/19 346
400 8.50%, 12/15/19 412
34 8.50%, 2/15/20 35
1,086 9.50%, 5/15/20 1,157
1,330 9.00%, 3/15/21 1,392
93 8.50%, 5/15/21 96
975 9.00%, 5/15/21 1,021
946 9.00%, 6/15/21 990
1,873 9.50%, 6/15/21 1,996
5,552 8.00%, 5/15/22 5,620
5,976 8.00%, 5/15/22 6,050
3,470 8.00%, 10/15/22 3,513
2,759 9.00%, 2/15/23 2,892
4,195 7.50%, 7/15/23 4,152
1,513 8.00%, 8/15/23 1,532
4,617 7.00%, 9/15/23 4,458
2,699 7.00%, 10/15/23 2,606
4,457 7.00%, 12/15/23 4,302
5,314 6.50%, 1/15/24 4,965
2,671 7.50%, 1/15/24 2,642
4,420 6.50%, 9/20/24 4,456
3,920 9.50%, 6/15/25 4,193
- ---------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES 123,939
- ---------------------------------------------------------
- ---------------------------------------------
U.S. TREASURY NOTES (3.0%)
3,000 5.75%, 10/31/00 2,923
1,000 5.63%, 2/15/06 926
- ---------------------------------------------------------
TOTAL U.S. TREASURY NOTES 3,849
- ---------------------------------------------------------
TOTAL (COST $131,866)(A) $129,078
=========================================================
</TABLE>
- ---------------
Percentages indicated are based on net assets of $130,436.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized depreciation of securities as follows:
<TABLE>
<S> <C> <C> <C>
Unrealized appreciation $ 395
Unrealized depreciation (3,183)
--------
Net unrealized appreciation $ (2,788)
=========
</TABLE>
*Adjustable Rate Mortgage.
SEE NOTES TO FINANCIAL STATEMENTS.
33
<PAGE> 35
Schedule of Investments
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands)
FUND FOR INCOME (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
- ----------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS (49.4%)
$ 1,072 Bear Stearns Mortgage
Capital Corp.,
9.40%, 6/25/21 $ 1,072
2,364 Bear Stearns Secured
Investors Trust,
7.50%, 9/20/20 2,351
50 Drexel Burnham & Lambert
Trust,
9.30%, 6/1/17 51
1,921 Federal National Mortgage
Assoc.,
9.25%, 3/25/18 1,983
1,000 General Electric Capital
Mortgage Services, Inc.,
7.00%, 3/25/08 952
1,870 Housing Securities, Inc.,
7.25%, 4/25/08 1,842
1,000 Kidder Peabody Acceptance
Corp.,
6.80%, 9/1/06 969
68 Merrill Lynch Trust,
8.90%, 10/20/15 69
1,297 Prudential Home Mortgage
Securities,
7.00%, 1/25/08 1,265
1,500 Resolution Trust Corp.,
8.20%, 11/25/21 1,509
- ------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS 12,063
- ------------------------------------------------------------
- ----------------------------------------------
COMMERCIAL PAPER (3.7%)
INDUSTRIAL (3.7%):
817 Dow Chemical,
5.30%, 5/1/96 817
- ------------------------------------------------------------
TOTAL COMMERCIAL PAPER 817
- ------------------------------------------------------------
- ----------------------------------------------
U.S. GOVERNMENT AGENCIES (38.8%)
FEDERAL HOME LOAN MORTGAGE CORP.:
11 12.00%, 10/1/10 12
2 12.00%, 7/1/14 2
3 12.00%, 7/1/14 3
64 9.30%, 8/15/15 65
21 10.00%, 2/1/17 23
127 9.50%, 8/1/19 135
145 10.00%, 9/1/19 158
194 9.50%, 11/1/19 207
79 9.50%, 11/1/19 83
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
$ 66 8.85%, 4/15/20 $ 65
736 9.50%, 12/1/22 779
FEDERAL NATIONAL MORTGAGE ASSOC.:
1,000 8.25%, 3/25/04 1,015
1,800 8.50%, 2/1/05 1,882
36 13.00%, 12/1/12 40
11 10.00%, 5/1/13 12
30 12.00%, 8/1/13 33
11 10.00%, 1/1/14 12
22 12.00%, 4/1/15 24
8 10.00%, 8/1/17 9
18 10.00%, 8/1/17 20
4 10.00%, 10/1/17 5
12 10.00%, 10/1/17 13
6 10.00%, 11/1/17 7
4 10.00%, 1/1/18 4
10 10.50%, 1/1/18 11
8 10.00%, 1/1/18 8
12 10.00%, 1/1/18 13
37 10.00%, 2/1/18 40
24 9.50%, 1/1/19 25
GOVERNMENT NATIONAL MORTGAGE ASSOC.:
65 11.00%, 9/20/14 71
54 10.50%, 2/15/16 59
49 10.00%, 3/15/16 53
54 9.50%, 8/15/17 58
107 9.50%, 8/15/17 114
98 10.00%, 10/15/17 106
68 10.00%, 1/15/18 74
79 10.00%, 1/15/18 86
21 10.00%, 2/15/18 23
43 10.00%, 3/15/18 47
405 9.50%, 5/15/18 432
213 9.50%, 6/15/18 227
98 10.00%, 7/15/18 107
8 10.00%, 7/15/18 9
73 10.00%, 9/15/18 79
101 10.00%, 9/15/18 110
96 10.00%, 9/15/18 104
45 10.00%, 9/15/18 48
81 10.00%, 9/15/18 88
328 10.00%, 11/15/18 358
110 10.00%, 1/15/19 120
48 10.25%, 3/15/19 52
49 10.25%, 6/15/19 53
191 9.50%, 10/15/19 203
874 9.50%, 9/20/20 924
274 10.00%, 6/15/21 298
- ------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES 8,608
- ------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
34
<PAGE> 36
Schedule of Investments -- Continued
THE VICTORY PORTFOLIOS April 30, 1996
FUND FOR INCOME (Amounts in Thousands)
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
- ----------------------------------------------
U.S. TREASURY OBLIGATIONS (1.6%)
U.S. Treasury Strip's
$ 2,000 0.00%, 8/15/20 $ 351
- ------------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS 351
- ------------------------------------------------------------
TOTAL (COST $21,220)(A) $ 21,839
============================================================
</TABLE>
- ---------------
Percentages indicated are based on net assets of $22,195.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C> <C> <C>
Unrealized appreciation $ 760
Unrealized depreciation (141)
----------
Net unrealized appreciation $ 619
==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
35
<PAGE> 37
Schedule of Investments
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
NATIONAL MUNICIPAL BOND FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
- ----------------------------------------------
MUNICIPAL BONDS (102.0%)
ALABAMA (6.7%):
$ 5 East Alabama, Health Care
Authority, Series A,
Revenue Bond, 5.10%,
9/1/08, MBIA $ 5
300 Mobile, Water & Sewer,
4.50%, 1/1/00, FGIC 300
1,290 University of South Alabama
Revenue Bond,
4.20%, 11/15/03 1,222
1,825 University of South Alabama
Revenue Bond,
4.60%, 11/15/07 1,683
----------
3,210
----------
ALASKA (0.5%):
250 Anchorage,
5.25%, 10/1/02, FGIC 257
----------
ARIZONA (5.6%):
250 Maricopa County,
School District,
4.40%, 7/1/02 244
270 Maricopa County,
School District,
4.60%, 7/1/04 262
125 Maricopa County,
School District #95,
Queens Creek, Series A,
5.20%, 7/1/05 127
2,000 Pima County,
4.05%*, 7/1/22, LOC Bank
of America 2,000
50 Salt River Project,
Agricultural Improvement,
Series A,
5.63%, 1/1/06 52
----------
2,685
----------
CALIFORNIA (0.0%):
5 Capital Area Development
Authority,
GO, Tax Allocation,
4.35%, 10/1/01 5
5 State Public Works,
Department of Corrections,
Del Norte Project, Series
C,
4.88%, 12/1/06 5
----------
10
----------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
COLORADO (1.9%):
$ 250 Adams County,
School District #12,
4.70%, 12/15/02, MBIA $ 249
400 Routt County, School
District, GO, 3.90%,
12/1/96 400
250 Summit County, School
District, GO, 4.75%,
12/1/02 251
----------
900
----------
CONNECTICUT (0.5%):
5 State, Special Tax
Obligation,
4.30%, 10/1/03 5
200 State, Special Tax
Obligation,
6.00%, 9/1/06 214
----------
219
----------
DISTRICT OF COLUMBIA (2.0%):
1,000 District of Columbia
Hospital,
5.75%, 8/15/26, MBIA 949
----------
FLORIDA (9.5%):
1,000 Lakeland, Hospital Revenue
Bonds,
5.25%, 11/15/06 899
5 Melbourne, Water & Sewer,
Series A,
4.50%, 10/1/05, FGIC 5
150 Orlando, Utilities
Commission,
Water & Electric,
5.80%, 10/1/06 158
5 Palm Bay, Utility Revenue,
5.00%, 10/1/08 5
1,830 Sarasota Hosptial, Revenue
Bonds,
6.00%, 10/1/05 1,963
1,435 Sarasota, Revenue
Obligations,
6.00%, 10/1/06 1,537
----------
4,567
----------
GEORGIA (10.4%):
3,410 State,
6.50%, 12/1/01 3,733
1,200 State, Series E, GO,
5.50%, 7/1/03 1,256
----------
4,989
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
36
<PAGE> 38
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
NATIONAL MUNICIPAL BOND FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
HAWAII (5.8%):
$ 1,635 Honolulu City,
6.00%, 11/1/05 $ 1,742
1,000 Honolulu City & County,
5.40%, 4/1/05 1,025
----------
2,767
----------
ILLINOIS (2.0%):
250 Chicago Public Building
Commission,
Revenue Bonds, 6.05%,
1/1/06, AMBAC 264
500 Northlake, Tax Increment,
5.00%, 12/1/04, MBIA 501
200 State Sales Tax Revenue
Bonds, Series V,
5.88%, 6/15/05 212
----------
977
----------
INDIANA (7.8%):
15 Board Book Revenue Bonds,
5.38%, 2/1/03 15
2,500 Southwest Allen,
5.13%, 7/15/16 2,252
1,400 Vincennes Community School
Building,
6.00%, 7/1/09 1,453
----------
3,720
----------
IOWA (0.8%):
400 Woodbury, Health Systems
Revenue Bonds,
5.10%, 9/1/06, MBIA 393
----------
KANSAS (1.0%):
500 Leawood,
4.80%, 9/1/08 475
----------
KENTUCKY (0.1%):
15 Economic Development Finance
Authority,
St. Claire Medical Center,
5.35%, 9/1/04 15
30 State Turnpike Authority,
Revitalization Projects,
5.30%, 7/1/04, AMBAC 31
----------
46
----------
MAINE (0.0%):
5 State Housing Authority,
5.00%, 11/15/06 5
----------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
MASSACHUSETTS (0.1%):
$ 10 New England Education Loan
Marketing Corp., Series A,
5.80%, 3/1/02 $ 10
50 Commonwealth, Series B, GO,
5.20%, 11/1/04 51
----------
61
----------
MICHIGAN (7.3%):
255 Byron Center,
5.40%, 5/1/07 258
500 Inkster School District,
5.40%, 5/1/11 496
500 Kalamazoo,
4.90%, 5/1/08, MBIA 477
1,000 Kalamazoo,
5.00%, 5/1/09, MBIA 956
250 Leslie Public Schools,
5.55%, 5/1/07 256
225 Municipal Bond Authority
Revenue Bonds,
6.70%, 11/1/06 248
275 Municipal Bond Authority
Revenue Bonds,
6.80%, 11/1/07 302
500 State Strategic Consumer,
3.85%*, 6/15/10 500
----------
3,493
----------
MILWAUKEE (0.5%):
200 Sewer District, Series A,
GO,
6.70%, 10/1/02 221
----------
MISSOURI (5.8%):
500 Excelsior Springs School
District Building Corp.,
6.50%, 3/1/09 532
250 Poplar Bluff, Public
Building Corp.,
5.00%, 9/1/06 248
2,000 State Health & Educational
Facilities,
4.05%*, 9/1/30 2,000
----------
2,780
----------
MONTANA (4.3%):
675 University of Montana,
0.00%*, 11/15/14 231
2,010 University of Montana,
5.00%, 11/15/17 1,823
----------
2,054
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
37
<PAGE> 39
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
NATIONAL MUNICIPAL BOND FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
NEVADA (0.1%):
$ 25 Nevada State, Series B, GO,
5.60%, 7/15/06 $ 26
----------
NEW JERSEY (0.0%):
20 New Jersey State
Transportation, Series A,
5.40%, 12/15/02 21
----------
NEW YORK (0.0%):
5 Schenectady Industrial
Development Agency,
Broadway Center Project,
5.00%, 9/1/09, FGIC 5
----------
OHIO (16.0%):
390 Butler County Waterworks,
3.60%, 12/1/97 388
610 Centerville,
5.50%, 12/1/06, FGIC 629
640 Centerville,
5.50%, 12/1/07, FGIC 658
200 Columbus Sewer, Revenue
Bonds,
5.50%, 6/1/01 208
1,000 Franklin County, Hospital
Revenue,
5.88%, 11/1/25 969
400 Huber Heights, Water
Systems,
5.10%, 12/1/06, MBIA 399
250 Muskingum County Hospital
Facilities,
3.80%, 12/1/96 250
250 Muskingum County Hospital
Facilities,
4.10%, 12/1/97 250
500 Muskingum County, Hospital
Revenue,
4.45%, 12/01/99, LOC
National City Bank 497
800 Springboro Community City
School District,
3.60%, 12/1/97 797
615 Springboro Community City
School District,
3.80%, 12/10/98 608
5 State, GO,
4.90%, 8/1/09 5
500 State, Special Obligation,
5.80%, 6/1/03 529
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
$ 15 State Building Authority,
Correctional Facilities,
Series A,
5.50%, 10/1/05 $ 15
1,500 State Quality,
4.10%*, 12/1/15 1,500
----------
7,702
----------
PENNSYLVANIA (0.0%):
5 Harrisburg Water Authority,
Series A,
5.00%, 8/15/08, FGIC 5
----------
PUERTO RICO (2.9%):
1,500 Commonwealth,
5.38%, 7/1/22, MBIA 1,407
----------
RHODE ISLAND (0.0%):
5 State Health & Educational,
Butler Hospital Financing,
4.60%, 1/1/01 5
----------
SOUTH CAROLINA (0.0%):
20 Piedmont Municipal Power
Agency,
5.50%, 1/1/08, MBIA 20
----------
SOUTH DAKOTA (1.0%):
250 Rapid City, Sales Tax
Revenue Bonds, Series C,
4.70%, 6/1/00 251
250 Rapid City, Water Revenue,
5.00%, 11/1/04, FGIC 251
----------
502
----------
TEXAS (5.0%):
200 Conroe Independent School
District, GO,
6.50%, 2/1/04 219
15 Dallas County Hospital
District,
5.40%, 5/15/06, AMBAC 15
200 Keller Independent School
District,
6.20%, 8/15/04 216
15 North Texas Water District,
4.20%, 6/1/00, AMBAC 15
100 State, Series A, GO,
6.00%, 10/1/08 107
570 Wichita Falls,
4.10%, 9/1/97, AMBAC 571
525 Wichita Falls,
4.40%, 9/1/98 525
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
38
<PAGE> 40
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
NATIONAL MUNICIPAL BOND FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
$ 525 Wichita Falls,
5.00%, 9/1/02, AMBAC $ 526
200 Ysleta Independent School
District, GO,
5.60%, 8/15/02 209
----------
2,403
----------
UTAH (0.9%):
5 Brigham City, Series A, GO,
4.90%, 6/1/07 5
410 St. George Water Revenue,
5.05%, 6/1/05, AMBAC 409
----------
414
----------
WASHINGTON (0.5%):
15 Seattle Indian Services
Commission, GO,
4.95%, 11/1/00 15
200 Seattle Municipal Light &
Power, Revenue Bonds,
6.00%, 7/1/03 213
----------
228
----------
WEST VIRGINIA (0.5%):
250 West Virginia State
Hospital,
5.00%, 9/1/05, MBIA 246
----------
WISCONSIN (1.1%):
450 Sheboygan Area School
District,
6.80%, 4/1/98 471
20 State, GO,
5.80%, 5/1/01 21
25 State Transportation, Series
A,
7.50%, 7/1/04 29
5 Sturgeon Bay, Combined
Utilities,
4.75%, 1/1/05, AMBAC 5
----------
526
----------
WYOMING (1.4%):
425 Sweetwater County School
District,
6.00%, 6/1/97 435
225 Sweetwater County School
District,
6.00%, 6/1/98 233
----------
668
- ------------------------------------------------------------
TOTAL MUNICIPAL BONDS 48,956
- ------------------------------------------------------------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
- ----------------------------------------------
INVESTMENT COMPANIES (5.1%)
$1,193,211 Federated Ohio Municipal
Cash Trust Fund $ 1,193
1,264,225 Nuveen Reserves Fund 1,264
- ------------------------------------------------------------
TOTAL INVESTMENT COMPANIES 2,457
- ------------------------------------------------------------
TOTAL (COST $52,136)(A) $ 51,413
============================================================
</TABLE>
- ---------------
Percentages indicated are based on net assets of $47,999.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized depreciation of securities as follows:
<TABLE>
<S> <C> <C> <C>
Unrealized appreciation $ 312
Unrealized depreciation (1,035)
----------
Net unrealized depreciation $ (723)
==========
</TABLE>
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity agreements. The interest rate, which
will change periodically, is based upon bank prime rates or an index of market
interest rates. The rate reflected on the Schedule of Investments is the rate
in effect at April 30, 1996.
AMBAC -- AMBAC Indemnity Corp.
FGIC -- Financial Guaranty Insurance Co.
GO -- General Obligation
LOC -- Letter of Credit
MBIA -- Municipal Bond Insurance Assoc.
SEE NOTES TO FINANCIAL STATEMENTS.
39
<PAGE> 41
Schedule of Investments
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
NEW YORK TAX-FREE FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
- --------------------------------------------
NEW YORK MUNICIPAL BONDS (97.4%)
$ 1,200 Metropolitan Transit
Authority, 7.50%, 7/1/98,
AMBAC $ 1,305
250 Metropolitan Transit
Authority, 7.00%, 7/1/09
AMBAC 289
250 Nassau County Industrial
Development Agency, Civic
Facilities Revenue Bonds,
6.75%, 8/1/11, AMBAC 268
680 New York City, Cultural
Resources, Revenue Bonds,
6.63%, 1/1/11, AMBAC 723
300 New York City, GO, Series B,
7.00%, 10/1/18, FSA 318
350 New York City, GO, Series C,
7.00%, 2/1/12, FGIC 359
700 New York City, Housing
Development, Refunding
Revenue Bonds, Multi-Unit
Mortgage, Series A, 7.30%,
6/1/10, FHA 748
675 New York City, Housing
Development Refunding
Revenue Bonds, Multi-Unit
Mortgage, Series A, 7.35%,
6/1/19, FHA 717
335 New York City, Housing
Development Revenue Bonds,
Series 1, 7.38%, 4/1/17,
MBIA 349
200 New York City, Industrial
Development Agency, Civic
Facilities Revenue Bonds,
USTA National Tennis
Center, 6.38%, 11/15/14 209
650 New York City, Municipal
Water Finance Authority,
6.75%, 6/15/16, 699
220 New York City, Transit
Authority, 7.50%, 1/1/00 246
700 New York State, Dormitory
Authority, Revenue Bonds,
City University, Series 2,
6.75%, 7/1/24, MBIA 753
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
$ 750 New York State, Dormitory
Authority, Ithaca College,
Revenue Bonds, 6.50%,
7/1/10, MBIA $ 787
225 New York State, Dormitory
Authority, Revenue Bonds,
Judicial Facilities
Leases, Series B, 7.00%,
4/15/16, MBIA 246
370 New York State, GO, 6.75%,
8/1/18, AMBAC 394
325 New York State, GO, 6.75%,
8/1/19, AMBAC 347
340 New York State, Medical Care
Facilities Finance Agency,
7.45%, 2/15/00 380
200 New York State Medical Care
Facilities Finance Agency,
Montefiore Medical, 5.75%,
2/15/25, AMBAC 193
565 New York State, Medical Care
Facilities Finance Agency,
Refunding Revenue Bonds,
North Shore University,
7.20%, 11/1/20, MBIA 617
550 New York State, Medical Care
Facilities Finance Agency,
Revenue Bonds, St. Luke's,
Series A, 7.10%, 2/15/27 569
500 New York State Medical Care
Facilities, Unrefunded
Revenue Bonds, 7.38%,
8/15/19, MBIA 544
550 New York State, TWY
Authority, General Revenue
Bonds, Series C, 6.00%,
1/1/25, FGIC 548
1,000 New York State Urban
Development, 7.50%, 1/1/98 1,077
400 New York State Urban
Development, 7.50%, 1/1/00 447
900 Triborough Bridge & Tunnel
Authority, 7.00%, 1/1/01 1,004
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
40
<PAGE> 42
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
NEW YORK TAX-FREE FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
$ 1,000 Triborough Bridge & Tunnel
Authority, Special
Obligation Refunding
Revenue Bonds, Series B,
6.88%, 1/1/15, AMBAC $ 1,075
500 University Puerto Rico,
Revenue Bonds, 5.25%,
6/1/25, MBIA 460
- -------------------------------------------------------
TOTAL NEW YORK MUNICIPAL BONDS 15,671
- -------------------------------------------------------
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
- --------------------------------------------
INVESTMENT COMPANIES (0.7%)
108,184 Providence of New York $ 108
- -------------------------------------------------------
TOTAL INVESTMENT COMPANIES 108
- -------------------------------------------------------
TOTAL (COST $14,822)(A) $15,779
========================================================
</TABLE>
- ---------------
Percentages indicated are based on net assets of $16,097.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows (amounts in thousands):
<TABLE>
<S> <C> <C> <C>
Unrealized appreciation $ 957
Unrealized depreciation --
-------
Net unrealized appreciation $ 957
========
</TABLE>
AMBAC -- AMBAC Indemnity Corporation
FGIC -- Financial Guaranty Insurance Company
FHA -- Federal Housing Administration
FSA -- Financial Security Assurance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Assoc.
SEE NOTES TO FINANCIAL STATEMENTS.
41
<PAGE> 43
Schedule of Investments
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
OHIO MUNICIPAL BOND FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
- ----------------------------------------------
MUNICIPAL BONDS (92.4%)
ALTERNATIVE MINIMUM TAX PAPER (11.3%):
$ 3,500 Student Loan Funding Corp.,
Series A, 5.50%, 12/1/01 $ 3,535
4,000 Student Loan Funding Corp.,
Series A, 5.85%, 8/1/04* 4,049
- ------------------------------------------------------------
TOTAL ALTERNATIVE MINIMUM TAX PAPER 7,584
- ------------------------------------------------------------
DEMAND NOTES (1.5%):
1,000 Ohio State Air Quality,
4.10%, 12/1/95 1,000
- ----------------------------------------------
GENERAL OBLIGATION BONDS (33.3%)
STATE (0.2%):
150 Ohio State General
Obligation, 4.35%, 8/1/02 147
----------
COUNTY, CITY, SPECIAL DISTRICT & SCHOOLS (33.1%):
1,000 Anthony Wayne School
District, 5.75%, 12/1/18,
FGIC 986
1,500 Batavia Local School
District, 7.00%, 12/1/14,
MBIA 1,680
750 Batavia Local School
District, 6.30%, 12/1/22 784
500 Beavercreek Local School
District, 6.85%, 12/1/97,
FGIC 500
1,000 Brecksville-Broadview
Heights, City School
District, 6.50%, 12/1/16 1,055
500 Canton Waterworks System,
5.75%, 12/1/10, AMBAC 507
500 Columbus, 5.35%, 9/15/06 511
1,385 Crawford County, 6.75%,
12/1/19, AMBAC 1,497
1,250 Delaware City School
District, 5.75%, 12/1/20,
FGIC 1,232
1,000 Hilliard School District,
6.15%, 12/1/06 1,056
1,135 Holmes County, 5.80%,
12/1/19 1,124
415 Indian Lake School District,
3.70%, 12/1/97, FGIC 414
450 Indian Lake School District,
3.85%, 12/1/98, FGIC 446
205 Indian Lake School District,
4.45%, 12/1/03, FGIC 199
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
$ 585 Indian Lake School District,
5.85%, 12/1/11, FGIC $ 241
2,500 Indian Valley Local School
District, 7.00%, 12/1/14 2,812
1,250 Lakeview Local School
District, 6.95%, 12/1/19,
AMBAC 1,376
250 Lorain, 5.35%, 12/1/08,
AMBAC 250
600 Madison County, 7.00%,
12/1/19, AMBAC 668
1,000 Monroe Falls, Series A,
6.95%, 12/1/14, AMBAC 1,090
500 Northeastern Ohio Local
School District, 5.55%,
12/1/18, FGIC 480
500 Olentangy Local School
District, 6.25%, 12/1/14 518
235 Springboro, 4.20%, 12/1/01,
AMBAC 230
500 Springboro, 4.30%, 12/1/02,
AMBAC 486
1,000 Sylvania City School
District, 5.75%, 12/1/22,
FGIC 986
1,000 Toledo, 6.10%, 12/1/14,
AMBAC 1,025
----------
22,153
- ------------------------------------------------------------
TOTAL GENERAL OBLIGATION BONDS 22,300
- ------------------------------------------------------------
- ----------------------------------------------
REVENUE BONDS (46.3%)
HOSPITALS, NURSING HOMES & HEALTH CARE (20.3%):
2,250 Butler County, Middletown
Regional Hospital, 6.75%,
11/15/10, FGIC 2,432
330 Franklin County Hospital,
4.50%, 11/1/98 330
840 Franklin County Hospital,
4.75%, 11/1/99 842
455 Franklin County Hospital,
4.90%, 11/1/00 456
500 Franklin County Hospital,
5.00% 11/1/01 502
500 Franklin County Hospital,
5.88%, 11/1/25 485
1,720 Franklin County, Riverside
Hospital, 7.25%, 5/15/20,
MBIA 1,871
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
42
<PAGE> 44
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
OHIO MUNICIPAL BOND FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
$ 1,000 Garfield Heights, Marymont
Hospital, Refunding &
Improvement, 6.70%,
11/15/15 $ 1,035
2,200 Lake County Hospital
Improvement Facilities,
6.38%, 8/15/03, AMBAC 2,363
545 Muskingum County Hospital,
4.45%, 12/1/99 542
500 Muskingum County Hospital,
5.35%, 12/1/07 493
635 Portage County Hospital,
6.50%, 11/15/03, MBIA 698
675 Portage County Hospital,
6.50%, 11/15/04, MBIA 745
715 Portage County Hospital,
6.50%, 11/15/05, MBIA 790
----------
13,584
----------
HOUSING (7.8%):
2000 Cuyahoga County Multifamily
Revenue, 6.60%, 10/20/30,
GNMA 2,042
1000 Ohio State Housing Finance
Agency, 5.70%, 3/1/17 960
275 Ohio Cap Corp., 5.75%,
7/1/06, MBIA 281
1775 Ohio Cap Corp., 6.35%,
7/1/22 1,786
115 Ohio Cap Corp., 6.50%,
1/1/24 117
----------
5,186
----------
PUBLIC FACILITIES (CONVENTION, SPORT, PUBLIC BUILDINGS)
(6.1%):
2,000 Ohio State Building
Authority, Adult
Correctional Facilities,
6.00%, 10/1/07 2,104
1,000 Ohio State Building
Authority, Adult
Correctional Facilities,
5.50%, 4/1/16 960
1,000 Ohio State Public
Facilities, Higher
Education, 5.88%, 12/1/04 1,052
----------
4,116
----------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
UTILITY (SEWERS, TELEPHONE, ELECTRIC) (12.1%):
$ 1,985 Cleveland Public Power
Systems, 7.00%, 11/15/24,
MBIA $ 2,201
500 Huber Heights Water System,
5.25%, 12/1/07, MBIA 500
815 Huber Heights Water System,
5.55%, 12/1/10, MBIA 816
1,000 Huber Heights Water System,
0.00%, 12/1/21, MBIA 223
1,000 Huber Heights Water System,
0.00%, 12/1/22, MBIA 210
1,100 Huber Heights Water System,
0.00%, 12/1/23, MBIA 218
1,245 Huber Heights Water System,
0.00%, 12/1/24, MBIA 232
1,265 Huber Heights Water System,
0.00%, 12/1/25, MBIA 223
500 Ohio State Water Development
Authority Revenue, Fresh
Water Service, 5.90%,
12/1/15 499
1,000 Ohio State Water Development
Authority Revenue, Fresh
Water Service, 5.90%,
12/1/21, AMBAC 995
500 Southwest Regional Water,
6.00%, 12/1/20, MBIA 506
250 Toledo Waterworks, 4.50%,
11/15/99 250
500 Toledo Waterworks, 4.75%,
11/15/00, FGIC 503
500 Toledo Waterworks, 5.00%,
11/15/02, FGIC 505
250 Warren County Sewer, 5.65%,
12/1/20, FGIC 243
----------
8,124
- ------------------------------------------------------------
TOTAL REVENUE BONDS 31,010
- ------------------------------------------------------------
TOTAL MUNICIPAL BONDS 61,894
- ------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
43
<PAGE> 45
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
OHIO MUNICIPAL BOND FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
- ----------------------------------------------
INVESTMENT COMPANIES (6.8%):
$1,722,973 Dreyfus Ohio Money Market
Institutional Fund $ 1,723
2,857,659 Federated Ohio Municipal
Cash Trust Fund 2,857
- ------------------------------------------------------------
Total Investment Companies 4,580
- ------------------------------------------------------------
TOTAL (COST $65,320) (A) $ 66,474
============================================================
</TABLE>
- ---------------
Percentages indicated are based on net assets of $66,982.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows (amounts in thousands):
<TABLE>
<S> <C> <C> <C>
Unrealized appreciation $ 1,452
Unrealized depreciation (298)
----------
Net unrealized appreciation $ 1,154
==========
</TABLE>
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity agreements. The interest rate, which
will change periodically, is based upon bank prime rates or an index of market
interest rates. The rate reflected on the Schedule of Investments is the rate
in effect at April 30, 1996.
AMBAC -- AMBAC Indemnity Corp.
FGIC -- Financial Guarantee Insurance Company
GNMA -- Government National Mortgage Assoc.
MBIA -- Municipal Bond Insurance Assoc.
SEE NOTES TO FINANCIAL STATEMENTS.
44
<PAGE> 46
Schedule of Investments
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
BALANCED FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
- ---------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS (0.5%)
FEDERAL HOME LOAN MORTGAGE CORP.:
$ 384 7.50%, 4/1/07 $ 386
FEDERAL NATIONAL MORTGAGE ASSOC.:
685 7.40%, 7/25/17 686
- ------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS 1,072
- ------------------------------------------------------------
- ----------------------------------------------
COMMERCIAL PAPER (5.8%)
FINANCIAL SERVICES (5.8%)
13,697 General Electric Capital
Corp., 5.35%, 5/1/96 13,697
- ------------------------------------------------------------
TOTAL COMMERCIAL PAPER 13,697
- ------------------------------------------------------------
- ----------------------------------------------
COMMON STOCKS (54.6%)
AEROSPACE/DEFENSE (2.2%):
19,900 Boeing Co. 1,634
41,300 Raytheon Co. 2,091
18,400 Textron, Inc. 1,578
----------
5,303
----------
ALUMINUM (0.7%):
25,300 Aluminum Co. of America 1,578
----------
AUTOMOBILE PARTS (0.3%):
20,000 Autozone 730
----------
AUTOMOBILES (0.9%):
8,000 Chrysler Corp. 502
30,000 Ford Motor Co. 1,076
8,000 Ford Motor Co., Convertible
Preferred 499
----------
2,077
----------
BANKS (4.3%):
54,900 BankAmerica Corp. 4,159
900 BBV-ADR 34
25,000 Chase Manhattan Corp. 1,722
27,600 First Union Corp. 1,697
1,300 IMI-ADR 31
12,000 J.P. Morgan & Co., Inc. 1,010
43,000 Norwest Corp. 1,553
2,000 Westpac Banking-ADR(b) 48
----------
10,254
----------
BEVERAGES (1.0%):
30,400 Anheuser Busch Co., Inc. 2,041
----------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
CHEMICALS (1.4%):
24,500 Air Products & Chemicals,
Inc. $ 1,399
14,800 Dow Chemical Co. 1,315
1,200 Imperial Chemical -- ADR 66
14,200 Lubrizol Corp. 412
600 Norsk Hydro -- ADR 28
----------
3,220
----------
COMPUTERS & PERIPHERALS (1.6%):
20,000 Bay Networks 630
22,000 Cisco Systems(b) 1,141
18,400 Hewlett Packard Co. 1,948
----------
3,719
----------
CONTAINERS (0.8%):
27,600 Newell Co. 787
30,000 Sonoco Products Co. 851
----------
1,638
----------
COSMETICS & RELATED (0.7%):
19,400 Avon Products 1,724
----------
ELECTRICAL EQUIPMENT (2.2%):
24,100 Emerson Electric Co. 2,015
34,400 General Electric Co. 2,666
900 Hitachi -- ADR 97
7,500 Motorola, Inc. 459
----------
5,237
----------
ELECTRONIC COMPUTING EQUIPMENT (0.4%):
17,900 Compaq Computer Corp.(b) 835
----------
FINANCIAL SERVICES (2.0%):
26,400 American Express Co. 1,280
1,000 Barclays -- ADR 44
61,200 Federal National Mortgage
Assoc. 1,874
23,300 Household International,
Inc. 1,611
----------
4,809
----------
FOOD DISTRIBUTORS (0.2%):
16,500 Supervalu, Inc. 528
----------
FOOD PROCESSING & PACKAGING (1.3%):
31,500 ConAgra, Inc. 1,217
2,000 Grand Metropolitan PLC --
ADR 53
59,000 Sara Lee Corp. 1,829
----------
3,099
----------
FOREST PRODUCTS (0.9%):
35,000 International Paper Co. 1,396
14,000 Mead Corp. 779
----------
2,175
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
45
<PAGE> 47
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
BALANCED FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
HEALTH CARE (0.8%):
35,000 Columbia HCA Healthcare $ 1,859
----------
HEAVY MACHINERY (0.9%):
64,300 Baker Hughes, Inc. 2,042
----------
INDUSTRIAL SERVICES (1.0%):
21,700 American Home Products Corp. 2,289
----------
INSURANCE (2.3%):
61,942 Allstate 2,408
9,200 Chubb Corp. 871
30,200 St. Paul Cos., Inc. 2,136
----------
5,415
----------
MANUFACTURING (1.3%):
31,700 Allied Signal, Inc. 1,843
23,300 Litton Industries, Inc. 1,057
400 Unilever NV 55
----------
2,955
----------
MEDICAL SUPPLIES (0.6%):
25,200 Medtronic, Inc. 1,339
----------
METALS (0.2%):
17,100 USX U.S. Steel Group 564
----------
OIL (4.9%):
12,000 Atlantic Richfield Co. 1,413
700 British Petroleum Co.,
PLC -- ADR 76
5,000 Exxon Corp. 425
31,700 Mobil Corp. 3,645
900 Repsol -- ADR 33
400 Royal Dutch Petroleum Co. 57
23,500 Royal Dutch Petroleum Co. --
ADR 3,366
29,500 Texaco, Inc. 2,522
2,800 YPF S.A. -- ADR 61
----------
11,598
----------
OIL & GAS EXPLORATION (2.3%):
57,600 Enron Corp. 2,318
75,900 Phillips Petroleum Co. 3,150
----------
5,468
----------
OILFIELD EQUIPMENT & SERVICES (0.6%):
16,000 Schlumberger, Ltd. 1,412
----------
PAINT, VARNISHES & ENAMELS (0.4%):
17,700 Sherwin Williams Co. 827
----------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
PHARMACEUTICALS (4.0%):
59,000 Abbott Laboratories $ 2,397
20,600 Merck & Co., Inc. 1,246
52,800 Pfizer, Inc. 3,637
36,200 Schering-Plough 2,077
1,400 Smithkline Beecham 76
----------
9,433
----------
PUBLISHING (0.3%):
20,000 Time Warner, Inc. 817
----------
RADIO & TELEVISION (0.7%):
41,700 Viacom, Class B 1,710
----------
RAILROADS (0.4%):
12,500 Norfolk Southern Corp. 1,050
----------
RETAIL (3.2%):
29,800 Dayton Hudson Corp. 2,846
20,000 Home Depot, Inc. 947
15,000 Lowes Cos., Inc. 486
12,700 Pep Boys -- Manny, Moe &
Jack 424
19,500 Sears & Roebuck Co. 973
27,800 Walgreen Co. 890
42,500 Wal-Mart Stores, Inc. 1,015
----------
7,581
----------
SEMICONDUCTORS (1.0%):
19,700 Intel Corp. 1,335
600 Kyocera -- ADR 91
25,000 LSI Logic Corp. 900
----------
2,326
----------
SOAPS & CLEANING AGENTS (0.2%):
6,000 Colgate Palmolive, Inc. 460
1,300 Procter & Gamble Co. 110
----------
570
----------
SOFTWARE & COMPUTER SERVICES (1.1%):
10,650 Microsoft 1,207
32,000 Novell, Inc. 464
30,000 Oracle Systems Corp. 1,013
----------
2,684
----------
STEEL (0.1%):
2,100 British Steel -- ADR 64
880 Broken Hill Proprietary --
ADR 54
2,300 Worthington Industries, Inc. 47
----------
165
----------
TAX RETURN PREPARATION (0.6%):
40,500 H & R Block 1,423
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
46
<PAGE> 48
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
BALANCED FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
TOBACCO & TOBACCO PRODUCTS (0.7%):
4,000 B.A.T. Industries -- ADR $ 62
16,500 Philip Morris Cos., Inc. 1,487
3,900 UST, Inc. 125
----------
1,674
----------
TRANSPORTATION (0.0%):
900 British Airways -- ADR 70
----------
UTILITIES -- ELECTRIC (2.7%):
54,900 Consolidated Edison Co. NY,
Inc. 1,613
44,000 DQE Co. 1,166
64,800 Houston Industries 1,385
57,800 Texas Utilities Co. 2,326
----------
6,490
----------
UTILITIES -- TELECOMMUNICATIONS (3.4%):
40,000 AT&T Corp. 2,450
15,000 Ameritech Corp. 876
900 British Telecom -- ADR 50
700 CIA Telecommuncacion --
Chile -- ADR 64
54,500 GTE Corp. 2,364
76,000 MCI Telecommunications Corp. 2,237
1,000 Telefonica De Espana -- ADR 53
----------
8,094
- ------------------------------------------------------------
TOTAL COMMON STOCKS 128,822
- ------------------------------------------------------------
- ----------------------------------------------
COMMON STOCKS -- FOREIGN (1.7%)
AUSTRALIA (0.0%):
BUILDING PRODUCTS (0.0%):
11,700 CSR, Ltd. 42
- ------------------------------------------------------------
TOTAL AUSTRALIA 42
- ------------------------------------------------------------
AUSTRIA (0.0%):
GAS EXPLORATION, PRODUCTION & SERVICE (0.0%):
270 OMV AG 27
- ------------------------------------------------------------
TOTAL AUSTRIA 27
- ------------------------------------------------------------
BELGIUM (0.0%):
UTILITIES -- ELECTRIC (0.0%):
260 Electrabel SA 58
- ------------------------------------------------------------
TOTAL BELGIUM 58
- ------------------------------------------------------------
BRITAIN (0.1%):
BANKS (0.0%):
10,500 Allied Irish Banks 55
----------
FINANCIAL SERVICES (0.0%):
2,100 HSBC Holding 31
----------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
PUBLISHING (0.0%):
2,200 Reed Elsevier
International(b) $ 38
----------
RETAIL (0.0%):
8,000 Marks & Spencer(b) 53
----------
TELECOMMUNICATIONS (0.0%):
7,000 British Telecom 38
----------
UTILITIES -- WATER (0.0%):
5,000 Severn Trent PLC(b) 45
- ------------------------------------------------------------
TOTAL BRITAIN 260
- ------------------------------------------------------------
DENMARK (0.0%):
FINANCIAL SERVICES (0.0%):
1,000 Dansk Bank(b) 65
----------
MEDICAL EQUIPMENT (0.0%):
500 Radiometer, Class B 38
- ------------------------------------------------------------
TOTAL DENMARK 103
- ------------------------------------------------------------
FRANCE (0.1%):
AGRICULTURE (0.0%):
300 Eridania Beghin 49
----------
CHEMICALS (0.0%):
450 Compagnie De Saint Gobain 54
----------
ENGINEERING (0.0%):
500 GTM Entrepose 32
----------
FINANCIAL SERVICES (0.0%):
400 Ecco 90
----------
INSURANCE (0.0%):
1,500 Union Des Assurances De
Paris 32
----------
OIL & GAS PRODUCTION (0.0%):
700 Elf Aquitaine 52
- ------------------------------------------------------------
TOTAL FRANCE 309
- ------------------------------------------------------------
GERMANY (0.2%):
BANKING (0.0%):
200 Commerzbank(b) 43
----------
BREWERY (0.0%):
390 Brau Und Brunnen AG 42
----------
CHEMICALS (0.0%):
250 BASF 68
----------
INSURANCE (0.0%):
20 Allianz AG Holding 34
----------
MANUFACTURING (0.0%):
100 Siemens AG 55
----------
OIL & GAS EXPLORATION (0.0%):
800 Veba AG 40
----------
PUBLISHING (0.0%):
17 Axel Springer 11
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
47
<PAGE> 49
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
BALANCED FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
UTILITIES -- ELECTRIC (0.0%):
1,400 Veba(b) $ 69
- ------------------------------------------------------------
TOTAL GERMANY 362
- ------------------------------------------------------------
HOLLAND (0.0%):
INSURANCE (0.0%):
1,100 Internationale Nederlanden 85
- ------------------------------------------------------------
TOTAL HOLLAND 85
- ------------------------------------------------------------
HONG KONG (0.1%):
REAL ESTATE (0.1%):
10,000 Cheung Kong 71
50,000 Hang Lung Development Co.,
Ltd. 95
10,000 Hutchinson Whampoa(b) 62
- ------------------------------------------------------------
TOTAL HONG KONG 228
- ------------------------------------------------------------
ITALY (0.1%):
AUTOMOTIVE (0.0%):
33,300 Fiat 60
----------
INSURANCE (0.0%):
2,400 Assicurazioni Generrali 60
----------
UTILITIES -- TELECOMMUNICATIONS (0.0%):
47,800 Telecom Italia 79
- ------------------------------------------------------------
TOTAL ITALY 199
- ------------------------------------------------------------
JAPAN (0.8%):
BANKS (0.2%):
15,000 Ashikaga Bank 101
20,000 Higo Bank 174
32,000 Yasuda Trust & Banking 212
----------
487
----------
BEVERAGES (0.1%):
15,000 Kirin Brewery Co.(b) 195
----------
ELECTRICAL & ELECTRONIC (0.0%):
7,000 Hitachi, Ltd. 76
----------
ENGINEERING (0.1%):
10,000 Daito Trust Construct Co. 148
----------
FINANCIAL SERVICES (0.0%):
3,000 Kinden(b) 48
3,000 Nomura Securities(b) 65
----------
113
----------
HOUSEHOLD PRODUCTS (0.0%):
6,000 Kao Corp. 80
----------
INDUSTRIAL GOODS & SERVICES (0.1%):
12,000 Inax Corp. 131
----------
PHARMACEUTICALS (0.0%):
5,000 Taisho Pharmaceutical 109
----------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
REAL ESTATE (0.0%):
8,000 Mitsui Fudosan(b) $ 105
----------
RETAIL (0.1%):
4,000 Aoyama Trading Co., Ltd. 126
----------
STEEL (0.0%):
15,000 Nippon Steel(b) 54
----------
UTILITIES -- ELECTRIC (0.1%):
7,000 Shikoku Electric Power 172
----------
UTILITIES -- WATER (0.0%):
3,000 Kurita Water Industries 75
- ------------------------------------------------------------
TOTAL JAPAN 1,871
- ------------------------------------------------------------
SPAIN (0.1%):
FINANCIAL SERVICES (0.0%):
600 Banco Bilbao Vizcaya 23
----------
UTILITIES -- ELECTRIC (0.0%):
8,000 Iberdrola I 78
- ------------------------------------------------------------
TOTAL SPAIN 101
- ------------------------------------------------------------
SWEDEN (0.1%):
AUTOMOTIVE (0.0%):
2,000 Volvo AB(b) 46
----------
HOUSEHOLD GOODS (0.0%):
500 Electrolux, B Shares 25
----------
PHARMACEUTICALS (0.0%):
900 Astra AB, B Shares 40
- ------------------------------------------------------------
TOTAL SWEDEN 111
- ------------------------------------------------------------
SWITZERLAND (0.1%):
BUSINESS SERVICES (0.0%):
35 Societie Generale Servalance
Bearer 78
----------
FINANCIAL SERVICES (0.0%):
737 CS Holding(b) 67
----------
FOOD MANUFACTURING (0.0%):
67 Nestle SA Registered 74
----------
PHARMACEUTICALS (0.0%):
38 Ciba Geige AG-Registered 44
9 Roche Genussshein(b) 71
----------
115
- ------------------------------------------------------------
TOTAL SWITZERLAND 334
- ------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS 4,090
- ------------------------------------------------------------
- ----------------------------------------------
CONVERTIBLE BONDS (0.1%)
BANKS (0.1%):
$ 94 Mitsubishi Bank
International Finance
Bermuda, 3.00%, 11/30/02 108
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
48
<PAGE> 50
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
BALANCED FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
TELECOMMUNICATIONS (0.0%):
$ 100 Telekom Malaysia, 4.00%,
10/3/04 $ 107
- ------------------------------------------------------------
TOTAL CONVERTIBLE BONDS 215
- ------------------------------------------------------------
- ----------------------------------------------
CORPORATE BONDS (10.7%)
AUTOMOTIVE (1.1%):
800 Ford Motor Co., 8.88%,
1/15/22 892
1,500 General Motors, 9.13%,
7/15/01 1,635
----------
2,527
----------
BANKING (1.5%):
300 BankAmerica Corp., 9.63%,
2/13/01 332
1,000 BankAmerica Corp., 8.38%,
2/13/02 1,066
1,200 First Union Corp., 9.45%,
8/15/01 1,328
400 SunTrust Banks, Inc., 7.38%,
7/1/02 406
500 Wachovia Corp., 6.05%,
10/1/25 482
----------
3,614
----------
BROKERAGE SERVICES (0.7%):
80 Morgan Stanley, 5.63%,
3/1/99 779
750 Morgan Stanley, 8.88%,
10/15/01 816
----------
1,595
----------
ELECTRICAL & ELECTRONIC (0.3%):
800 Philips Electronics, 7.13%,
5/15/25 787
----------
FINANCIAL SERVICES (2.2%):
1,000 Associates, 7.50%, 10/15/96 1,008
1,500 BHP Finance, 6.69%, 3/1/06 1,434
1,000 Merrill Lynch Corp., 8.25%,
11/15/99 1,046
1,000 Merrill Lynch Corp., 6.00%,
3/1/01 964
800 Salomon Brothers, 6.70%,
12/1/98 791
----------
5,243
----------
HEALTH CARE (0.5%):
1,000 Columbia HCA Healthcare,
8.85%, 1/1/07 1,102
----------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
IMPORT/EXPORT (0.4%):
$ 1,000 Union Oil of California,
6.38%, 2/1/04 $ 943
----------
INDUSTRIAL GOODS & SERVICES (2.6%):
1,200 Black & Decker, 7.50%,
4/1/03 1,216
1,000 Champion International,
7.75%, 9/1/25 956
500 EG&G, 6.80%, 10/15/05 477
1,000 Georgia-Pacific, 9.95%,
6/15/02 1,136
700 John Deere Capital, 8.63%,
8/1/19 749
500 Lubrizoil Corp., 7.25%,
6/15/25 480
500 Waste Management, 7.88%,
8/15/96 503
500 Westvaco Corp., 9.75%,
6/15/20 608
----------
6,125
----------
INSURANCE (0.5%):
1,000 Nationwide Mutual, 9.88%,
2/15/25 1,085
----------
PUBLISHING (0.2%)
500 Time Warner, Inc., 9.15%,
2/1/23 524
----------
RETAIL (0.2%):
500 Dayton Hudson, 6.40%,
2/15/03 474
----------
TOBACCO & TOBACCO PRODUCTS (0.4%):
1,000 Philip Morris, 9.00%, 1/1/01 1,080
----------
UTILITIES -- TELECOMMUNICATIONS (0.1%):
200 U.S. West Capital Funding,
Inc., 8.00%, 10/15/96 202
- ------------------------------------------------------------
TOTAL CORPORATE BONDS 25,301
- ------------------------------------------------------------
- ----------------------------------------------
U.S. GOVERNMENT SECURITIES (13.2%)
FEDERAL HOME LOAN MORTGAGE CORP.:
1,981 6.00%, 2/1/11 $ 1,877
FEDERAL NATIONAL MORTGAGE ASSOC.:
1,981 6.00%, 11/1/08 1,890
2,862 6.00%, 8/1/10 2,714
1,690 7.50%, 3/1/24 1,672
1,122 9.00%, 4/1/25 1,171
1,026 9.00%, 5/1/25 1,071
GOVERNMENT NATIONAL MORTGAGE ASSOC.:
1,635 6.50%, 2/15/09 1,592
198 9.50%, 7/15/09 211
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
49
<PAGE> 51
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
BALANCED FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
GOVERNMENT NATIONAL MORTGAGE ASSOC. CONT'D.
$ 1,466 6.00%, 1/15/11 $ 1,399
1,387 9.00%, 10/15/16 1,458
182 9.00%, 11/15/16 191
658 9.00%, 9/15/19 688
634 9.00%, 12/15/19 664
770 9.00%, 1/15/20 809
456 9.00%, 2/15/20 477
1,448 8.50%, 5/15/20 1,494
604 8.50%, 4/15/21 623
763 7.50%, 12/15/22 755
365 8.50%, 3/15/23 376
932 7.50%, 11/15/23 922
2,005 6.50%, 1/15/24 1,874
1,872 7.50%, 1/15/24 1,851
1,388 7.50%, 5/15/24 1,372
2,489 8.50%, 9/15/24 2,571
1,530 6.50%, 4/15/26 1,431
----------
31,153
----------
- ----------------------------------------------
U.S. TREASURY BONDS (2.6%)
1,300 10.38%, 11/15/12 1,651
1,050 7.13%, 2/15/23 1,055
3,275 7.50%, 11/15/24 3,453
----------
6,159
----------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
- ----------------------------------------------
U.S. TREASURY NOTES (10.0%)
$ 3,700 7.75%, 1/31/00 $ 3,869
2,600 7.13%, 2/29/00 2,665
6,780 6.13%, 9/30/00 6,705
10,500 6.38%, 8/15/02 10,408
----------
23,647
- ------------------------------------------------------------
TOTAL (COST $207,045)(A) $ 234,156
- ------------------------------------------------------------
</TABLE>
- ---------------
Percentages indicated are based on net assets of $236,093.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows (amounts in thousands):
<TABLE>
<S> <C> <C> <C>
Unrealized appreciation $ 27,121
Unrealized depreciation (10)
----------
Net unrealized appreciation $ 27,111
==========
</TABLE>
(b) Represents non-income producing securities.
ADR -- American Depository Receipt
SEE NOTES TO FINANCIAL STATEMENTS.
50
<PAGE> 52
Schedule of Investments
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
STOCK INDEX FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
- ----------------------------------------------
COMMERCIAL PAPER (11.4%)
FINANCIAL SERVICES (11.4%):
$ 25,615 General Electric Capital
Corp., 5.35%, 5/1/96 $ 25,615
- ----------------------------------------------------------
TOTAL COMMERCIAL PAPER 25,615
- ----------------------------------------------------------
- ----------------------------------------------
COMMON STOCKS (88.0%)
ADVERTISING (0.1%):
3,120 Interpublic Group Cos., Inc. 146
--------
AEROSPACE/DEFENSE (1.5%):
13,842 Boeing Co. 1,137
2,516 General Dynamics Corp. 159
8,086 Lockheed Martin Corp. 652
4,565 McDonnell Douglas 440
2,000 Northrop Grumman Corp. 124
8,786 Rockwell International Corp. 514
3,473 Textron, Inc. 298
--------
3,324
--------
AIRCRAFT & AIRCRAFT PARTS (0.2%):
5,005 United Technologies Corp. 553
--------
AIR FREIGHT (0.1%):
3,127 AMR Corp. Delaware(b) 279
2,340 U. S. Air Group, Inc.(b) 42
--------
321
--------
AIRLINES (0.1%):
2,049 Delta Air Lines 165
--------
ALUMINUM (0.2%):
7,213 Aluminum Co. of America 450
--------
APPAREL (0.0%):
3,010 Liz Claiborne, Inc. 109
--------
AUTOMOBILES (1.9%):
15,420 Chrysler Corp. 967
44,337 Ford Motor Co. 1,590
30,117 General Motors 1,634
2,802 Navistar International
Corp.(b) 34
1,589 PACCAR, Inc. 79
--------
4,304
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
AUTOMOTIVE PARTS (0.4%):
1,631 Cummins Engine, Inc. $ 76
4,085 Dana Corp. 136
3,162 Eaton Corp. 191
2,441 Echlin, Inc. 84
4,907 Genuine Parts Co. 217
2,663 TRW, Inc. 250
--------
954
--------
BANKS (3.9%):
4,541 Bank of Boston Corp. 220
15,117 BankAmerica Corp. 1,145
3,158 Bankers Trust New York 219
3,901 Barnett Banks, Inc. 247
6,347 Boatmens Bancshares, Inc. 246
17,399 Chase Manhattan Corp. 1,198
4,625 Comerica, Inc. 201
12,760 First Chicago NBD Corp. 526
11,324 First Union Corp. 696
7,544 J.P. Morgan & Co., Inc. 635
11,893 NationsBank Corp. 948
14,262 Norwest Corp. 515
13,682 PNC Bank Corp. 414
4,653 SunTrust Banks, Inc. 328
6,911 Wachovia Corp. 304
3,918 Wells Fargo & Co. 951
--------
8,793
--------
BANKS -- MONEY CENTERS (REGIONAL) (1.0%):
19,537 Citicorp 1,538
8,640 CoreStates Financial Corp. 337
2,407 Golden West Financial Corp.
Delaware 127
5,943 National City Corp. 219
--------
2,221
--------
BANKS -- OUTSIDE MONEY CENTER (0.5%):
18,240 Banc One Corp. 634
4,076 Fifth Third Bancorp 225
5,498 First Bank Systems, Inc. 331
--------
1,190
--------
BEVERAGES (3.3%):
10,328 Anheuser Busch Co., Inc. 693
2,780 Brown Forman Corp., Class B 110
50,862 Coca-Cola Co. 4,145
1,454 Coors Adolph Co., Class B 28
31,814 PepsiCo, Inc. 2,020
15,009 Seagram Co. Limited 509
--------
7,505
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
51
<PAGE> 53
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
STOCK INDEX FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
BUILDING MATERIALS (0.6%):
1,542 Armstrong World Industries,
Inc. $ 88
1,094 Centex Corp. 30
1,193 Crane Co. 49
1,834 Fleetwood Enterprises, Inc. 48
1,168 Kaufman & Broad Home Corp. 16
6,417 Masco Corp. 175
4,678 Monsanto Co. 709
5,955 Morton International, Inc. 211
2,033 Owens Corning Fiberglas
Corp.(b) 82
1,025 Pulte Corp. 27
--------
1,435
--------
CHEMICALS (0.1%):
2,573 Great Lakes Chemical 176
--------
CHEMICALS -- GENERAL (2.4%):
4,473 Air Products & Chemicals,
Inc. 256
10,858 Dow Chemical Co. 965
22,439 E.I. Du Pont De Nemours Co. 1,804
3,229 Eastman Chemical 217
2,581 Ecolab, Inc. 84
1,522 FMC Corp.(b) 106
4,458 Hercules, Inc. 270
3,046 Mallinckrodt 120
2,756 Nalco Chemical Co. 84
8,123 PPG Industries, Inc. 411
5,577 Praxair, Inc. 215
2,743 Rohm & Haas Co. 182
2,006 Sigma-Aldrich 108
5,520 Union Carbide Corp. 251
3,836 W.R. Grace & Co. 297
--------
5,370
--------
CHEMICALS -- SPECIALTY (0.1%):
2,189 Avery Dennison Corp. 125
--------
COMMERCIAL SERVICES (0.1%):
7,079 CUC International(b) 233
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
COMPUTERS & PERIPHERALS (3.6%):
6,589 3Com Corp.(b) $ 304
4,840 Amdahl Corp.(b) 62
4,885 Apple Computer, Inc.(b) 119
7,319 Bay Networks, Inc.(b) 231
21,957 Cisco Systems(b) 1,139
2,208 Computer Sciences Corp.(b) 163
219 Cray Research, Inc.(b) 6
1,410 Data General Corp.(b) 22
5,933 Digital Equipment Corp.(b) 355
9,000 EMC Corp.(b) 185
20,661 Hewlett Packard Corp. 2,187
1,869 Integraph Corp.(b) 24
22,962 International Business
Machines Corp. 2,468
6,461 Silicon Graphics(b) 191
7,763 Sun Microsystems, Inc.(b) 421
4,705 Tandem Computers, Inc.(b) 60
6,848 Unisys Corp.(b) 41
--------
7,978
--------
CONGLOMERATES (0.6%):
9,218 Corning Glass Works 321
16,977 Minnesota Mining &
Manufacturing Co. 1,116
--------
1,437
--------
CONSTRUCTION (0.2%):
2,925 Case Corp. 148
3,384 Fluor Corp. 224
1,630 Foster Wheeler Corp. 75
--------
447
--------
CONSUMER CREDIT (0.2%):
6,859 Dean Witter Discover & Co. 374
--------
CONSUMER GOODS (0.1%):
2,975 American Greetings Corp. 82
1,555 Jostens, Inc. 35
--------
117
--------
CONTAINERS -- METAL, GLASS, PAPER, PLASTIC
(0.3%):
1,173 Ball Corp. 37
2,077 Bemis, Inc. 67
5,006 Crown Cork & Seal, Inc. 236
6,383 Newell Co. 182
6,334 Rubbermaid, Inc. 179
3,838 Stone Container Corp. 65
--------
766
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
52
<PAGE> 54
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
STOCK INDEX FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
COSMETICS & RELATED (0.7%):
1,052 Alberto Culver Co. $ 40
2,802 Avon Products 249
3,720 Dial Corp. 104
17,869 Gillette Co. 965
4,494 International Flavor &
Fragrance, Inc. 221
--------
1,579
--------
DEPARTMENT STORES (0.3%):
4,560 Dillard Department Stores,
Inc., Class A 183
9,167 J. C. Penney 454
1,442 Mercantile Stores, Inc. 90
--------
727
--------
DIVERSIFIED -- CONGLOMERATES, HOLDINGS
(0.0%):
1,910 National Service Industries,
Inc. 71
--------
DRUG STORES (0.1%):
854 Longs Drug Stores Corp. 39
3,363 Rite Aid Corp. 99
--------
138
--------
ELECTRICAL EQUIPMENT (3.0%):
1,760 Bally Manufacturing Corp.(b) 37
4,636 DSC Communications Corp.(b) 146
9,020 Emerson Electric Co. 754
67,258 General Electric Co. 5,212
2,200 General Instrument Corp.(b) 72
1,615 Johnson Controls, Inc. 115
1,666 Thomas & Betts Corp. 66
2,072 W.W. Grainger, Inc. 143
15,880 Westinghouse Electric Corp. 300
--------
6,845
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
ELECTRICAL SERVICES (0.1%):
4,708 General Public Utilities
Corp. $ 149
--------
ELECTRONIC COMPUTING EQUIPMENT (0.3%):
2,882 Cabletron Systems(b) 217
10,648 Compaq Computer Corp.(b) 497
--------
714
--------
ELECTRONIC & ELECTRICAL -- GENERAL (1.7%):
5,239 Advanced Micro Devices(b) 98
8,810 AMP, Inc. 394
2,373 Andrew Corp.(b) 114
4,339 Cooper Industries 184
2,129 EG&G, Inc. 47
1,966 General Signal Corp. 75
1,599 Harris Corp. 99
5,090 Honeywell, Inc. 268
23,749 Motorola, Inc. 1,455
5,058 National Semiconductor
Corp.(b) 80
9,842 Raytheon Co. 498
2,651 Tandy Corp. 137
1,318 Tektronix, Inc. 52
7,580 Texas Instruments, Inc. 428
--------
3,929
--------
ENTERTAINMENT (1.1%):
3,878 Brunswick Corp. 85
4,161 Harrahs Entertainment(b) 143
3,494 Hasbro, Inc. 128
1,441 King World Productions(b) 63
4,768 Loews Corp. 364
26,512 Walt Disney Co. 1,644
--------
2,427
--------
ENVIRONMENTAL CONTROL (0.1%):
11,879 Laidlaw, Inc., Class B 125
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
53
<PAGE> 55
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
STOCK INDEX FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
FINANCIAL SERVICES (3.7%):
19,589 American Express Co. $ 950
11,684 Automatic Data Processing,
Inc. 454
7,775 Bank of New York Co., Inc. 377
2,106 Beneficial Corp. 116
2,652 Ceridian Corp.(b) 127
7,290 Federal Home Loan Mortgage
Corp. 608
44,004 Federal National Mortgage
Assoc. 1,348
10,374 Fleet Financial Group 446
5,533 Great Western Financial
Corp. 127
6,179 Green Tree Financial Corp. 209
4,771 H.F. Ahmanson & Co. 113
3,965 Household International,
Inc. 274
8,531 Keycorp 330
8,990 MBNA Corp. 255
5,897 Mellon Bank Corp. 317
7,136 Merrill Lynch & Co., Inc. 431
6,204 Morgan Stanley Group, Inc. 312
4,271 Salomon, Inc. 173
2,800 Transamerica Corp. 213
12,866 Travelers, Inc. 791
6,078 U.S. Bancorp 197
--------
8,168
--------
FOOD DISTRIBUTORS (0.2%):
10,257 Albertsons, Inc. 395
--------
FOOD DISTRIBUTORS (SUPERMARKETS &
WHOLESALERS) (0.4%):
413 Earthgrains, Inc. 13
1,462 Fleming Cos., Inc. 20
1,476 Great Atlantic & Pacific
Tea, Inc. 51
4,952 Kroger Co.(b) 204
2,704 Supervalu, Inc. 86
7,397 Sysco Corp. 238
6,079 Winn Dixie Stores, Inc. 201
--------
813
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
FOOD PROCESSING & PACKAGING (2.2%):
21,819 Archer Daniels Midland Co. $ 412
5,920 CPC International, Inc. 409
10,012 Campbell Soup Co. 626
9,896 ConAgra, Inc. 382
6,441 General Mills 358
14,727 H.J. Heinz Co. 499
3,152 Hershey Foods Corp. 239
8,829 Kellogg Co. 630
3,392 Pioneer Hi-Bred
International, Inc. 189
5,392 Quaker Oats Co. 185
4,165 Ralston-Purina Group 243
19,321 Sara Lee Corp. 599
4,651 Wm. Wrigley Jr. Co. 245
--------
5,016
--------
FOREST PRODUCTS -- LUMBER & PAPER (1.6%):
4,510 Alco Standard Corp. 261
1,953 Boise Cascade Corp. 91
3,947 Champion International Corp. 190
3,661 Georgia Pacific Corp. 285
12,187 International Paper Co. 486
3,359 James River Corp. Virginia 90
11,202 Kimberly Clark Corp. 814
4,390 Louisiana Pacific Corp. 110
2,192 Mead Corp. 122
4,065 Moore Corp., Ltd. 74
1,164 Potlatch Corp. 50
2,271 Temple-Inland, Inc. 110
2,796 Union Camp Corp. 152
4,075 Westvaco Corp. 126
8,240 Weyerhauser Co. 408
2,199 Willamette Industries, Inc. 135
--------
3,504
--------
FUNERAL SERVICES (0.1%):
4,204 Service Corp. International 223
--------
GOLD & SILVER MINING (0.0%):
5,273 Santa Fe Pacific Gold
Corp.(b) 78
--------
HEALTH CARE (0.5%):
17,909 Columbia HCA Healthcare 952
6,546 Humana, Inc.(b) 161
--------
1,113
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
54
<PAGE> 56
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
STOCK INDEX FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
HEAVY MACHINERY (0.8%):
5,691 Baker Hughes, Inc. $ 181
8,064 Caterpillar Tractor, Inc. 516
10,512 Deere & Co. 409
1,956 Harnischfeger Industries,
Inc. 79
4,307 Ingersoll Rand Co. 167
2,199 McDermott International,
Inc. 46
6,208 Tyco Laboratories, Inc. 240
1,648 Varity Corp.(b) 70
--------
1,708
--------
HOLDING COMPANIES (0.4%):
4,698 ITT Hartford Group, Inc. 230
4,691 ITT Corp. 129
4,690 ITT Corp. 285
2,257 Republic New York Corp. 134
--------
778
--------
HOSPITAL & NURSING EQUIPMENT (1.1%):
2,213 Bard C.R., Inc. 81
26,805 Johnson & Johnson, Inc. 2,479
--------
2,560
--------
HOTELS & MOTELS (0.2%):
1,990 Hilton Hotels Corp. 210
5,015 Marriott International, Inc. 244
--------
454
--------
HOUSEHOLD GOODS -- APPLIANCES &
FURNISHINGS (0.2%):
4,351 Maytag Corp. 94
2,540 Premark International, Inc. 131
3,030 Whirlpool Corp. 182
--------
407
--------
INDUSTRIAL SERVICES (0.7%):
12,571 American Home Products Corp. 1,326
4,586 Dover Corp. 236
--------
1,562
--------
INSURANCE -- LIFE (0.5%):
2,885 Jefferson Pilot Corp. 152
3,852 Providian Corp. 178
2,852 Torchmark Corp. 123
6,978 United Healthcare 408
6,218 U. S. Healthcare, Inc. 324
1,425 USLIFE Corp. 40
--------
1,225
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
INSURANCE -- MULTI-LINE (1.8%):
4,540 Aetna Life & Casualty Co. $ 324
1,759 Alexander & Alexander
Services, Inc. 33
8,231 American General Corp. 289
19,101 American International
Group, Inc. 1,745
2,946 Cigna Corp. 334
3,309 General Re Corp. 473
4,219 Lincoln National Corp. 204
2,961 Marsh & McLennan Cos., Inc. 278
5,047 SafeCo Corp. 167
3,429 St. Paul Cos., Inc. 182
4,557 USF&G Corp. 72
--------
4,101
--------
INSURANCE -- PROPERTY, CASUALTY, HEALTH (0.5%):
18,108 Allstate 704
3,488 Chubb Corp. 330
2,885 UNUM Corp. 172
--------
1,206
--------
LEISURE -- RECREATION, GAMING (0.0%):
408 Bally Health & Tennis(b) 2
--------
MACHINE TOOLS (0.0%):
1,365 Cincinnati Milacron, Inc. 36
1,284 Giddings & Lewis, Inc. 24
--------
60
--------
MANUFACURING-CAPITAL GOODS (0.2%):
4,702 Illinois Tool Works, Inc. 316
1,142 Trinova Corp. 40
--------
356
--------
MANUFACTURING-CONSUMER GOODS (0.1%):
755 Outboard Marine Corp. 15
2,268 Teledyne, Inc.(b) 84
2,088 Western Atlas(b) 125
--------
224
--------
MANUFACTURING-MISCELLANEOUS (0.9%):
11,398 Allied Signal, Inc. 662
1,167 Briggs & Stratton Corp. 53
1,779 Millipore Corp. 74
4,633 Pall Corp. 130
2,933 Parker-Hannifin Corp. 124
6,451 Unilever N. V. 881
4,223 Whitman Corp. 107
--------
2,031
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
55
<PAGE> 57
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
STOCK INDEX FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
MEDICAL SERVICES (0.1%):
4,010 Beverly Enterprises, Inc.(b) $ 49
1,678 Community Psychiatric
Centers, Inc.(b) 15
2,556 Manor Care, Inc. 103
8,094 Tenet Healthcare Corp.(b) 166
--------
333
--------
MEDICAL SUPPLIES (0.8%):
2,339 Bausch & Lomb, Inc. 93
11,172 Baxter International, Inc. 494
2,638 Becton Dickinson & Co. 213
4,627 Biomet, Inc.(b) 68
6,999 Boston Scientific Corp.(b) 302
9,295 Medtronic, Inc. 494
2,839 St. Jude Medical, Inc. 104
2,280 United States Surgical Corp. 84
--------
1,852
--------
METALS -- FABRICATION (0.6%):
9,106 Alcan Aluminum Ltd. 290
1,744 Asarco, Inc. 58
3,750 Cyprus Amax Minerals 102
8,179 Freeport McMoran Copper,
Class B(b) 269
5,520 Homestake Mining Co. 111
1,920 Inland Steel Industries,
Inc. 47
3,452 Newmont Mining Corp. 200
2,792 Phelps Dodge Corp. 205
2,586 Reynolds Metals Co. 139
--------
1,421
--------
PRIMARY METAL & MINERAL PRODUCTION (0.5%):
3,985 Armco, Inc.(b) 23
14,244 Barrick Gold Corp. 436
4,453 Bethlehem Steel Corp.(b) 61
4,587 Echo Bay Mines Ltd. 60
5,733 Englehard Corp. 144
4,767 Inco Ltd. 160
3,570 Nucor Corp. 201
3,278 USX U.S. Steel Group 108
--------
1,193
--------
NEWSPAPERS (0.5%):
5,677 Gannett Co., Inc. 388
1,992 Knight-Ridder, Inc. 144
3,939 New York Times Co., Class A 128
4,495 Times Mirror Co., Class A 192
2,593 Tribune Co. 181
--------
1,033
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
OFFICE EQUIPMENT & SUPPLIES (0.4%):
6,139 Pitney Bowes, Inc. $ 299
4,284 Xerox Corp. 628
--------
927
--------
OIL & GAS EXPLORATION & PRODUCTION (1.6%):
3,712 Amerada Hess Corp. 210
2,591 Ashland, Inc. 107
4,274 Coastal Corp. 169
2,047 Columbia Gas System(b) 100
793 Eastern Enterprises 28
10,123 Enron Corp. 407
2,726 Enserch Corp. 59
970 Helmerich & Payne, Inc. 36
2,118 Kerr-Mcgee Corp. 135
1,355 Louisana Land & Exploration
Co. 73
4,987 Noram Energy Corp. 55
12,852 Occidental Petroleum Corp. 331
1,008 Oneok, Inc. 26
4,156 Oryx Energy Co.(b) 66
6,054 Panenergy Corp. 198
1,837 Pennzoil Co. 81
10,545 Phillips Petroleum Co. 438
3,396 Rowan Cos.(b) 50
3,651 Sante Fe Energy Resources,
Inc.(b) 44
3,453 Sonat, Inc. 151
3,062 Sun Co., Inc. 95
11,965 USX -- Marathon Group 263
9,909 Unocal Corp. 318
4,116 Williams Co., Inc. 210
--------
3,650
--------
OIL & GAS PRODUCTION (1.1%):
5,128 Burlington Resource, Inc. 191
15,943 Mobil Corp. 1,833
7,318 Tenneco, Inc. 402
--------
2,426
--------
OIL -- INTEGRATED COMPANIES (5.3%):
19,988 Amoco Corp. 1,459
6,432 Atlantic Richfield Co. 757
26,288 Chevron Corp. 1,525
50,119 Exxon Corp. 4,260
21,582 Royal Dutch Petroleum Co. 3,092
10,500 Texaco, Inc. 898
--------
11,991
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
56
<PAGE> 58
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
STOCK INDEX FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
OILFIELD EQUIPMENT & SERVICES (0.6%):
7,394 Dresser Industries, Inc. $ 236
4,590 Halliburton Co. 263
9,783 Schlumberger Limited 863
--------
1,362
--------
PAINT, VARNISHES & ENAMELS (0.1%):
3,392 Sherwin Williams Co. 159
--------
PHARMACEUTICALS (5.4%):
31,978 Abbott Laboratories 1,299
2,592 Allergan, Inc. 92
3,279 Alza Corp., Class A(b) 93
10,716 Amgen, Inc.(b) 616
20,507 Bristol-Myers Squibb Co. 1,687
22,237 Eli Lilly & Co. 1,312
49,866 Merck & Co., Inc. 3,017
25,548 Pfizer, Inc. 1,760
20,292 Pharmacia & Upjohn Co. 776
15,030 Schering-Plough 862
5,481 Warner-Lambert Co. 612
--------
12,126
--------
PHOTOGRAPHY (0.5%):
13,763 Eastman Kodak Co. 1,053
1,844 Polaroid Corp. 83
--------
1,136
--------
POLLUTION CONTROL SERVICES & EQUIPMENT (0.4%):
8,548 Browning-Ferris Industries,
Inc. 275
2,317 Safety Kleen 35
19,592 WMX Technologies, Inc. 681
--------
991
--------
PRECISION INSTRUMENTS & RELATED (0.0%):
1,679 Perkin Elmer 92
--------
PUBLISHING, EXCEPT NEWSPAPER (0.8%):
3,378 Deluxe Corp. 118
3,943 Dow Jones & Co., Inc. 147
6,887 Dun & Bradstreet Corp. 419
1,215 John H. Harland Co. 32
4,050 McGraw Hill, Inc. 179
1,052 Meredith Corp. 48
6,210 R.R. Donnelley & Sons Co. 223
15,527 Time Warner, Inc. 635
--------
1,801
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
RADIO & TELEVISION (0.7%):
9,638 Comcast, Class A Special
Shares $ 169
300 Comcast Corp., Class A 5
26,351 Tele-Communications, Inc.,
Class A(b) 504
19,006 US West Media Group 371
14,582 Viacom, Class B(b) 598
--------
1,647
--------
RAILROAD & RAILROAD HOLDING COMPANIES (0.8%):
5,676 Burlington Northern/Santa
Fe, Inc. 497
8,529 CSX Corp. 437
3,201 Conrail, Inc. 223
8,243 Union Pacific Corp. 562
--------
1,719
--------
RAILROADS (0.2%):
5,292 Norfolk Southern Corp. 445
--------
RESTAURANTS (0.7%):
6,337 Darden Restaurants, Inc.(b) 87
896 Luby's Cafeterias, Inc. 22
27,987 McDonald's Corp. 1,340
2,009 Ryans Family Steak House(b) 19
1,522 Shoney's, Inc.(b) 17
4,125 Wendy's International 79
--------
1,564
--------
RETAIL (2.5%):
5,959 American Stores Co. 199
3,834 Charming Shoppes, Inc.(b) 25
2,929 Dayton Hudson Corp. 280
8,164 Federated Department Stores,
Inc.(b) 273
2,915 Harcourt General, Inc. 128
18,398 K-Mart Corp.(b) 186
6,439 Lowes Companies, Inc. 208
10,059 May Department Stores 513
3,271 Nordstrom, Inc. 166
7,892 Price/Costco, Inc.(b) 150
15,704 Sears & Roebuck Co. 783
92,550 Wal Mart Stores, Inc. 2,210
9,906 Walgreen Co. 317
5,288 Woolworth Corp.(b) 101
--------
5,539
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
57
<PAGE> 59
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
STOCK INDEX FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
RETAIL -- SPECIALTY STORES (1.0%):
3,891 Circuit City Stores, Inc. $ 124
11,592 The Gap 349
2,357 Giant Food, Inc. 75
19,214 Home Depot, Inc. 910
11,842 The Limited, Inc. 246
4,188 Melville Corp. 163
2,498 Pep Boys -- Manny, Moe &
Jack 83
2,953 TJX Cos., Inc. 87
11,122 Toys R Us, Inc.(b) 310
--------
2,347
--------
RUBBER & RUBBER PRODUCTS (0.2%):
2,160 B.F. Goodrich, Inc. 86
3,401 Cooper Tire & Rubber Co. 83
6,171 Goodyear Tire & Rubber Co. 322
--------
491
--------
SEMICONDUCTORS (1.3%):
7,172 Applied Materials, Inc.(b) 287
33,206 Intel Corp. 2,250
5,167 LSI Logic Corp.(b) 186
8,284 Micron Technology, Inc. 301
--------
3,024
--------
SERVICES (NON-FINANCIAL) (0.3%):
8,952 First Data Corp. 681
1,939 Ogden Corp. 39
--------
720
--------
SHOES, LEATHER GOODS & CLOTHING ACCESSORIES (0.3%):
698 Brown Group, Inc. 11
5,775 Nike, Inc. 505
3,196 Reebok International Ltd. 93
1,838 Stride Rite Corp. 18
--------
627
--------
SOAPS & CLEANING AGENTS (1.3%):
2,123 Clorox Co. 175
5,864 Colgate Palmolive, Inc. 449
27,782 Procter & Gamble Co. 2,348
--------
2,972
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
SOFTWARE & COMPUTER SERVICES (2.1%):
1,881 Autodesk, Inc. $ 77
9,672 Computer Associates
International, Inc. 710
23,716 Microsoft Corp.(b) 2,689
14,919 Novell, Inc.(b) 216
26,241 Oracle Systems Corp.(b) 885
919 Shared Medical Systems 63
--------
4,640
--------
STEEL (0.0%):
3,671 Worthington Industries, Inc. 75
--------
TAX RETURN PREPARATION (0.1%):
4,200 H & R Block 148
--------
TELECOMMUNICATIONS (2.2%):
19,904 Airtouch Communications(b) 622
7,650 Alltel Corp. 251
17,626 Bell Atlantic Corp. 1,146
10,217 Northern Telecom Ltd. 526
17,275 Pacific Telesis Group 592
3,072 Scientific-Atlanta, Inc. 57
14,105 Sprint Corp. 594
3,595 Tellabs, Inc.(b) 199
4,382 360 Communications Co. 103
19,054 U. S. West, Inc. 624
4,000 Worldcom, Inc.(b) 188
--------
4,902
--------
TEXTILES -- MANUFACTURING (0.1%):
3,062 Fruit of the Loom(b) 81
1,618 Russell Corp. 42
815 Springs Industries, Inc.,
Class A 37
2,547 V. F. Corp. 145
--------
305
--------
TOBACCO & TOBACCO PRODUCTS (1.6%):
7,569 American Brands, Inc. 315
33,972 Philip Morris Cos., Inc. 3,062
7,847 UST, Inc. 251
--------
3,628
--------
TOOLS & HARDWARE -- MANUFACTURING (0.2%):
3,421 Black & Decker Corp. 138
1,651 Snap On Tools, Inc. 79
1,822 Stanley Works 114
1,199 Timken Co. 48
--------
379
--------
TOYS & BICYCLES -- MANUFACTURING (0.1%):
11,128 Mattel, Inc. 289
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
58
<PAGE> 60
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
STOCK INDEX FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
TRANSPORTATION -- AIR (0.1%):
5,815 Southwest Airlines Co. $ 173
--------
TRANSPORTATION LEASING & TRUCKING (0.2%):
1,581 Caliber Systems, Inc. 63
1,675 Consolidated Freightways,
Inc. 44
2,258 Federal Express Corp.(b) 182
3,150 Ryder Systems, Inc. 92
1,035 Yellow Corp.(b) 13
--------
394
--------
TRUCKS -- MANUFACTURING (0.1%):
409 Nacco Industries, Inc. 26
9,621 Placer Dome, Inc. 267
--------
293
--------
UTILITIES -- ELECTRIC (2.6%):
7,514 American Electric Power 305
6,308 Carolina Power & Light 227
7,759 Central & South West Corp. 211
6,309 Cinergy Corp. 183
9,427 Consolidated Edison Co. NY,
Inc. 277
5,945 Detroit Edison Co. 184
7,042 Dominion Resources 271
8,255 Duke Power Co. 388
17,989 Edison International 288
9,217 Entergy Corp 244
7,437 FPL Group, Inc. 321
10,638 Houston Industries 227
5,838 Niagara Mohawk Power
Corp.(b) 44
2,724 Northern States Power Co.
Minnesota 127
6,174 Ohio Edison 129
11,526 PacifiCorp 231
8,949 Peco Energy Co. 223
6,438 PP&L Resources, Inc. 146
9,831 Public Service Enterprise 257
1,758 Raychem Corp. 137
26,839 Southern Co. 590
9,097 Texas Utilities Co. 366
8,675 Unicom Corp. 239
4,129 Union Electric Co. 159
--------
5,774
--------
UTILITIES -- ELECTRIC & GAS (0.3%):
5,926 Baltimore Gas & Electric 156
17,080 Pacific Gas & Electric Co. 389
1,387 Peoples Energy Corp. 44
--------
589
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
UTILITIES -- NATURAL GAS (0.1%):
3,710 Consolidated Natural Gas $ 173
2,026 Nicor, Inc. 56
3,412 Pacific Enterprises 88
--------
317
--------
UTILITIES -- TELECOMMUNICATIONS (5.2%):
64,114 A T & T Corp 3,927
22,339 Ameritech Corp. 1,304
40,095 Bellsouth Corp. 1,604
39,131 GTE Corp. 1,697
27,400 MCI Telecommunications Corp. 807
17,248 Nynex Corp. 847
24,625 SBC Communications, Inc. 1,231
--------
11,417
- ----------------------------------------------------------
TOTAL COMMON STOCKS 198,092
- ----------------------------------------------------------
- ----------------------------------------------
U.S. TREASURY BILLS (0.5%)
$ 1,130 5.22%, 6/20/96 1,123
- ----------------------------------------------------------
TOTAL (COST $183,374)(A) $224,830
- ----------------------------------------------------------
</TABLE>
- ---------------
Percentages indicated are based on net assets of $225,016.
(a) Cost for federal income tax purposes differs from value by net unrealized
appreciation of securities as follows (amount in thousands):
<TABLE>
<S> <C> <C> <C>
Unrealized appreciation $ 43,910
Unrealized depreciation $ (2,454)
--------
Net unrealized appreciation $ 41,456
=========
</TABLE>
(b) Represents non-income producing securities.
<TABLE>
<S> <C> <C> <C>
- ----------------------------------------------
FUTURES CONTRACTS
<CAPTION>
MARKET
NUMBER OF VALUE
CONTRACTS (000)
<S> <C> <C> <C>
Long, Standard & Poor's 500
Index Futures Contract,
face amount $26,351,
expiring June 17, 1996 81 $26,521
-------
$26,521
========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
59
<PAGE> 61
Schedule of Investments
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
DIVERSIFIED STOCK FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
- ----------------------------------------------
COMMERCIAL PAPER (2.9%):
$ 14,239 General Electric Capital
Corp.,
5.35%, 5/1/96 $ 14,239
--------
Total Commercial Paper 14,239
--------
- ----------------------------------------------
COMMON STOCKS (97.0%)
AEROSPACE/DEFENSE (3.4%):
128,500 Boeing Co. 10,553
77,000 Textron, Inc. 6,603
--------
17,156
--------
AIRLINES (1.0%):
60,000 Delta Air Lines 4,823
--------
AUTOMOTIVE PARTS (2.5%):
120,000 Autozone (b) 4,380
90,000 AMR Corp. Delaware (b) 8,033
--------
12,413
--------
BANKS (5.4%):
50,800 BankAmerica Corp. 3,848
70,000 Citicorp 5,513
100,000 First Union Corp. 6,150
144,400 Norwest Corp. 5,216
195,000 PNC Bank Corp. 5,899
--------
26,626
--------
CHEMICALS (5.5%):
175,000 Air Products & Chemicals,
Inc. 9,997
90,200 Dow Chemical Co. 8,017
150,000 Lubrizol Corp. 4,350
326,750 RPM Inc., Ohio 5,024
--------
27,388
--------
COMPUTERS & PERIPHERALS (6.0%):
200,000 Bay Networks (b) 6,300
50,000 Compaq Computer Corp. (b) 2,331
100,000 Hewlett Packard Co. 10,588
75,000 I.B.M. Corp. 8,063
50,000 Sun Microsystems, Inc. (b) 2,713
--------
29,995
--------
CONGLOMERATES (1.4%):
107,500 Minnesota Mining &
Manufacturing Co. 7,068
--------
ELECTRICAL EQUIPMENT (3.6%):
150,800 General Electric Co. 11,687
86,800 W.W. Grainger, Inc. 5,989
--------
17,676
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
ELECTRONIC & ELECTRICAL -- GENERAL (2.5%):
150,000 Motorola, Inc. $ 9,188
52,800 Texas Instruments, Inc. 2,983
--------
12,171
--------
ENGINEERING & CONSTRUCTION (0.5%):
38,700 Fluor Corp. 2,559
--------
ENTERTAINMENT (1.2%):
100,000 Walt Disney Co. 6,200
--------
FINANCIAL SERVICES (2.5%):
260,000 Bear Stearns Cos., Inc. 6,533
100,000 Travelers, Inc. (b) 6,150
--------
12,683
--------
FOOD PROCESSING & PACKAGING (2.9%):
182,700 Conagra, Inc. 7,057
135,000 Pioneer Hi-Bred
International, Inc. 7,526
--------
14,583
--------
FOREST PRODUCTS (2.1%):
100,000 International Paper Co. 3,988
90,000 Kimberly Clark Corp. 6,536
--------
10,524
--------
HEALTH CARE (1.7%):
160,000 Columbia HCA Healthcare 8,500
--------
HOTELS & MOTELS (0.7%):
70,000 Mirage Resorts, Inc. (b) 3,666
--------
HOUSEHOLD GOODS -- APPLIANCES, FURNISHINGS
(2.6%):
206,000 Newell Co. 5,871
115,000 Whirlpool Corp. 6,914
--------
12,785
INSURANCE -- LIFE (0.1%):
10,000 Jefferson Pilot Corp. 528
--------
INSURANCE -- MULTI-LINE (3.0%):
50,000 Aetna Life & Casualty Co. 3,563
65,350 American International,
Group, Inc. 5,971
105,000 St. Paul Companies, Inc. 5,578
--------
15,112
--------
INSURANCE -- PROPERTY & CASUALTY (0.8%):
147,000 Travelers/Aetna Property
Casualty Corp. 4,061
--------
MANUFACTURING -- MISCELLANEOUS (0.7%):
61,100 Allied Signal, Inc. 3,551
--------
MEDICAL SUPPLIES (0.6%):
202,500 Biomet, Inc. (b) 2,987
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
60
<PAGE> 62
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
DIVERSIFIED STOCK FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
NATURAL GAS (2.2%):
275,700 Enron Corp. $ 11,097
--------
OIL & GAS PRODUCTION (1.5%):
140,000 Tenneco, Inc. 7,683
--------
OIL -- INTEGRATED COMPANIES (6.7%):
40,400 Atlantic Richfield Co. 4,757
110,500 Exxon Corp. 9,393
159,500 Phillips Petroleum Co. 6,619
40,000 Royal Dutch Petroleum Co. 5,730
80,500 Texaco, Inc. 6,883
--------
33,382
--------
OILFIELD EQUIPMENT & SERVICES (5.0%):
270,000 Baker Hughes, Inc. 8,573
300,600 Dresser Industries, Inc. 9,582
80,000 Schlumberger, Ltd. 7,060
--------
25,215
--------
PHARMACEUTICALS (8.0%):
175,000 Abbott Laboratories 7,109
130,000 Amgen, Inc. (b) 7,475
175,000 Eli Lilly & Co. 10,325
130,000 Merck & Co., Inc. 7,865
100,000 Pfizer, Inc. 6,888
--------
39,662
--------
PRIMARY METAL & MINERAL PRODUCTION (0.8%):
125,200 Barrick Gold Corp. 3,834
--------
RADIO & TELEVISION (1.4%):
170,000 Viacom, Class B (b) 6,970
--------
RETAIL (4.7%):
119,200 Dayton Hudson Corp. 11,384
170,000 Nordstrom, Inc. 8,649
100,000 Walgreen Co. 3,200
--------
23,233
--------
RETAIL -- SPECIALTY STORES (0.3%):
40,000 Pep Boys-Manny, Moe & Jack 1,335
--------
SEMICONDUCTORS (3.5%):
120,000 Intel Corp. 8,129
250,000 LSI Logic Corp. (b) 9,000
--------
17,129
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
SOAPS & CLEANING AGENTS (1.9%):
26,300 Colgate Palmolive, Inc. $ 2,015
90,000 Procter & Gamble Co. 7,604
--------
9,619
--------
TAX RETURN PREPARATION (1.1%):
160,000 H&R Block 5,619
--------
TOBACCO & TOBACCO RELATED (1.4%):
80,000 Philip Morris Cos., Inc. 7,210
--------
TRUCKING (0.9%):
195,550 TNT Freightways Corp. 4,423
--------
UTILITIES -- ELECTRIC (4.6%):
143,200 Consolidated Edison Co. NY,
Inc. 4,207
439,300 Houston Industries 9,390
150,000 Southern Co. 3,300
153,500 Texas Utilities Co. 6,177
--------
23,074
--------
UTILITIES -- TELECOMMUNICATIONS (2.2%):
90,000 AT&T Corp. 5,513
180,000 MCI Telecommunications Corp. 5,298
--------
10,811
- ----------------------------------------------------------
TOTAL COMMON STOCKS 483,351
- ----------------------------------------------------------
TOTAL (COST--$427,536)(A) $497,590
- ----------------------------------------------------------
</TABLE>
- ---------------
Percentages are based on net assets of $498,401.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C> <C> <C>
Unrealized appreciation $ 74,114
Unrealized depreciation (4,060)
--------
Net unrealized appreciation $ 70,054
=========
</TABLE>
(b) Represents non-income producing securities.
SEE NOTES TO FINANCIAL STATEMENTS.
61
<PAGE> 63
Schedule of Investments
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
VALUE FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
- ----------------------------------------------
COMMERCIAL PAPER (3.5%)
$ 12,000 General Electric Capital
Corp., 5.35%, 5/1/96 $ 12,000
- ----------------------------------------------------------
TOTAL COMMERCIAL PAPER 12,100
- ----------------------------------------------------------
- ----------------------------------------------
COMMON STOCKS (96.4%)
AEROSPACE/DEFENSE (3.8%):
72,000 Boeing Co. 5,913
57,200 Litton Industries, Inc. (b) 2,595
92,900 Raytheon Co. 4,703
--------
13,211
--------
AUTOMOTIVE (2.0%):
52,500 Chrysler Corp. 3,294
98,000 Ford Motor Co. 3,516
--------
6,810
--------
AUTOMOTIVE PARTS (0.3%):
29,300 Autozone 1,069
--------
BANKS (6.4%):
92,000 BankAmerica Corp. 6,969
52,200 Chase Manhatten Corp. 3,595
22,000 Comerica, Inc. 957
54,000 CoreStates Financial Corp. 2,106
71,000 First Union Corp. 4,367
51,100 J.P. Morgan & Co., Inc. 4,299
--------
22,293
--------
BEVERAGES (1.0%):
52,000 Anheuser Busch Co., Inc. 3,491
--------
CHEMICALS (2.5%):
47,400 Air Products & Chemicals,
Inc. 2,708
31,000 Dow Chemical Co. 2,755
67,000 Lubrizol Corp. 1,943
90,000 RPM, Inc., Ohio 1,384
--------
8,790
--------
COMPUTERS & OFFICE EQUIPMENT (1.1%):
26,000 I.B.M. Corp. 2,795
20,000 Pitney Bowes, Inc. 975
--------
3,770
--------
COMPUTER SOFTWARE (2.3%):
53,000 Bay Networks 1,670
28,000 Microsoft (b) 3,175
92,000 Novell, Inc. (b) 1,334
52,350 Oracle Systems Corp. (b) 1,766
--------
7,945
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
CONTAINERS & PACKAGING (1.4%):
117,000 Newell Co. $ 3,335
50,000 Sonoco Products Co. 1,419
--------
4,754
--------
COSMETICS & RELATED (1.1%):
41,000 Avon Products 3,644
--------
ELECTRICAL EQUIPMENT (3.0%):
43,000 Emerson Electric Co. 3,596
86,000 General Electric Co. 6,665
--------
10,261
--------
ELECTRONICS (2.9%):
32,900 Hewlett Packard Co. 3,483
60,000 Intel Corp. 4,065
72,200 LSI Logic Corp. (b) 2,598
--------
10,146
--------
FINANCIAL SERVICES (3.8%):
70,000 American Express Co. 3,395
116,000 Federal National Mortgage
Assoc. 3,553
52,000 H & R Block 1,827
62,400 Household International,
Inc. 4,313
--------
13,088
--------
FOOD PROCESSING & PACKAGING (2.8%):
79,000 ConAgra, Inc. 3,051
54,000 Pioneer Hi-Bred
International, Inc. 3,011
116,900 Sara Lee Corp. 3,624
--------
9,686
--------
HEALTH CARE (1.0%):
62,800 Columbia HCA Healthcare 3,336
--------
HOME PRODUCTS (0.6%):
48,000 Sherwin Williams Co. 2,244
--------
INDUSTRIAL -- MISCELLANEOUS (3.3%):
49,000 Allied Signal, Inc. 2,848
34,000 Minnesota Mining &
Manufacturing Co. 2,236
45,000 Textron, Inc. 3,859
68,000 WMX Technologies, Inc. 2,363
--------
11,306
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
62
<PAGE> 64
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
VALUE FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
INSURANCE (5.3%):
53,000 Aetna Life & Casualty Co. $ 3,776
146,000 Allstate 5,676
114,000 American General Corp. 4,004
84,000 St. Paul Cos., Inc. 4,463
30,000 Travelers/Aetna (b) 829
--------
18,748
--------
MACHINERY & MANUFACTURING (1.2%):
72,000 Cooper Industries 3,060
26,000 Deere & Co. 1,011
--------
4,071
--------
MEDIA (2.5%):
55,000 Cox Communications, Inc. 1,128
47,000 Dow Jones & Co., Inc. 1,757
40,000 Dun & Bradstreet Corp. 2,435
43,000 Time Warner, Inc. 1,758
38,800 Viacom Class B (b) 1,590
--------
8,668
--------
MEDICAL SUPPLIES (0.9%):
50,000 Biomet, Inc. 738
46,800 Medtronic, Inc. 2,486
--------
3,224
--------
METALS & MINING (2.5%):
55,000 Aluminum Co. of America 3,431
83,000 Cyprus Amax Minerals 2,251
92,000 USX U.S. Steel Group 3,036
--------
8,718
--------
OIL -- INTEGRATED (DOMESTIC) (3.2%):
34,600 Atlantic Richfield Co. 4,074
167,800 Phillips Petroleum Co. 6,964
--------
11,038
--------
OIL -- INTEGRATED (INTERNATIONAL) (8.7%):
80,000 Chevron Corp. 4,640
46,000 Exxon Corp. 3,910
73,000 Mobil Corp. 8,395
32,000 Royal Dutch Petroleum Co. 4,584
105,200 Texaco, Inc. 8,994
--------
30,523
--------
OILFIELD WELL EQUIPMENT & SERVICES (2.1%):
135,000 Baker Hughes, Inc. 4,286
32,200 Schlumberger Ltd. 2,842
--------
7,128
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
PAPER & FOREST PRODUCTS (2.4%):
145,000 International Paper Co. $ 5,782
46,000 Mead Corp. 2,559
--------
8,341
--------
PHARMACEUTICALS (6.1%):
89,000 Abbott Laboratories 3,616
35,000 American Home Products Corp. 3,693
48,300 Merck & Co., Inc. 2,922
101,800 Pfizer, Inc. 7,011
70,200 Schering-Plough 4,028
--------
21,270
--------
RETAIL -- FOOD & DRUGS (1.5%):
80,200 Supervalu, Inc. 2,566
78,000 Walgreen Co. 2,495
--------
5,061
--------
RETAIL -- SPECIALTY STORES (0.7%):
71,000 Pep Boys-Manny, Moe & Jack 2,370
--------
RETAIL -- TRADE (3.5%):
62,000 Dayton Hudson Corp. 5,921
81,000 Sears & Roebuck Co. 4,040
95,000 Wal Mart Stores, Inc. 2,268
--------
12,229
--------
SOAPS & PERSONAL CARE (0.2%):
10,800 Colgate Palmolive, Inc. 828
--------
TOBACCO (1.4%):
52,000 Philip Morris Cos., Inc. 4,687
--------
TRANSPORTATION (0.9%):
35,500 Caliber System, Inc. 1,424
19,800 Norfolk Southern Corp. 1,662
10,000 Roadway Express, Inc. 149
--------
3,235
--------
UTILITIES -- ELECTRIC (5.2%):
136,000 Consolidated Edison Co. NY,
Inc. 3,995
90,000 DQE Light Co. 2,385
191,300 Houston Industries 4,089
65,000 Public Service Co. of
Colorado 2,153
135,400 Texas Utilities Co. 5,449
--------
18,071
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
63
<PAGE> 65
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
VALUE FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
UTILITIES -- NATURAL GAS (2.2%):
80,000 Consolidated Natural Gas $ 3,740
65,000 Enron Corp. 2,616
40,000 Peoples Energy Corp. 1,259
--------
7,615
--------
UTILITIES -- TELECOMMUNICATIONS (6.6%):
112,000 AT&T Corp 6,860
76,400 Ameritech Corp. 4,460
156,000 GTE Corp. 6,767
98,000 MCI Telecommunications Corp. 2,885
36,000 Nynex Corp. 1,768
--------
22,740
- ----------------------------------------------------------
TOTAL COMMON STOCKS 334,409
- ----------------------------------------------------------
TOTAL (COST $274,120) (A) $346,509
- ----------------------------------------------------------
</TABLE>
- ---------------
Percentages indicated are based on net assets of $346,959.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C> <C> <C>
Unrealized appreciation $ 74,833
Unrealized depreciation (2,444)
--------
Net unrealized appreciation $ 72,389
=========
</TABLE>
(b) Represents non-income producing securities.
SEE NOTES TO FINANCIAL STATEMENTS.
64
<PAGE> 66
Schedule of Investments
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
GROWTH FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
- ---------------------------------------------------------
COMMERCIAL PAPER/
MASTER DEMAND NOTES (2.3%)
FINANCIAL SERVICES (2.3%):
$ 2,939 General Electric Capital
Corp., 5.35%, 5/1/96 $ 2,939
- ----------------------------------------------------------
TOTAL COMMERCIAL PAPER/MASTER DEMAND NOTES 2,939
- ----------------------------------------------------------
- ----------------------------------------------
COMMON STOCKS (97.7%)
AEROSPACE/DEFENSE (0.8%):
12,500 Boeing Co. 1,027
--------
ALUMINUM (0.5%):
10,000 Aluminum Co. of America 624
--------
AUTOMOTIVE PARTS (0.7%):
10,000 Autozone (b) 365
15,000 Pep Boys-Manny, Moe & Jack 501
--------
866
--------
BANKS (4.2%):
30,000 BankAmerica Corp. 2,273
10,000 J.P. Morgan & Co., Inc. 841
60,000 Norwest Corp. 2,167
--------
5,281
--------
BEVERAGES (4.7%):
25,000 Anheuser Busch Co., Inc. 1,678
45,000 Coca-Cola Co. 3,668
10,000 PepsiCo, Inc. 635
--------
5,981
--------
CHEMICALS -- GENERAL (3.2%):
25,000 Air Products & Chemicals,
Inc. 1,428
20,000 Dow Chemical Co. 1,777
55,000 RPM, Inc. 846
--------
4,051
--------
COMPUTERS & PERIPHERALS (3.0%):
17,500 Bay Networks (b) 551
10,000 Cisco Systems (b) 519
17,500 Hewlett Packard Co. 1,853
20,000 3Com Corp. (b) 922
--------
3,845
--------
CONTAINERS -- METAL, GLASS, PAPER & PLASTIC (2.1%):
70,000 Newell Co. 1,995
25,000 Sonoco Products Co. 709
--------
2,704
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
COSMETICS & RELATED (1.5%):
35,000 Gillette Co. $ 1,890
--------
ELECTRICAL EQUIPMENT (7.9%):
35,000 Emerson Electric Co. 2,927
72,000 General Electric Co. 5,580
22,500 W.W. Grainger, Inc. 1,552
--------
10,059
--------
ELECTRONIC COMPUTING EQUIPMENT (0.7%):
20,000 Compaq Computer Corp. (b) 933
--------
ELECTRONIC & ELECTRICAL GENERAL (2.0%):
42,000 Motorola, Inc. 2,573
--------
ENTERTAINMENT (1.5%):
30,000 Walt Disney Co. 1,860
--------
FINANCIAL SERVICES (2.3%):
30,000 Automatic Data Processing,
Inc. 1,166
58,400 Federal National Mortgage
Assoc. 1,789
--------
2,955
--------
FOOD PROCESSING & PACKAGING (2.4%):
35,000 ConAgra, Inc. 1,352
55,000 Sara Lee Corp. 1,705
--------
3,057
--------
FOREST PRODUCTS -- LUMBER, PAPER (1.4%):
30,000 International Paper Co. 1,197
10,000 Mead Corp. 556
--------
1,753
--------
HEALTH CARE (3.4%):
47,500 Columbia HCA Healthcare 2,523
23,500 Health Management Assoc.,
Inc. (b) 752
20,000 Medtronic, Inc. 1,063
--------
4,338
--------
HOSPITAL & NURSING EQUIPMENT & SUPPLIES (1.5%):
20,000 Johnson & Johnson, Inc. 1,850
--------
INDUSTRIAL SERVICES (2.1%):
25,000 American Home Products Corp. 2,638
--------
INSURANCE (3.0%):
30,000 American International
Group, Inc. 2,741
20,000 St. Paul Cos., Inc. 1,063
--------
3,804
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
65
<PAGE> 67
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
GROWTH FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
MANUFACTURING -- MISCELLANEOUS (2.6%):
30,000 Allied Signal, Inc. $ 1,744
23,000 Minnesota Mining &
Manufacturing Co. 1,512
--------
3,256
--------
OFFICE EQUIPMENT & SUPPLIES (0.8%):
20,000 Pitney Bowes, Inc. 975
--------
OIL -- DOMESTIC INTEGRATED (3.5%):
17,500 Atlantic Richfield Co. 2,061
40,000 Enron Corp. 1,610
20,000 Phillips Petroleum Co. 830
--------
4,501
--------
OIL -- INTEGRATED COMPANIES (3.6%):
40,000 Chevron Corp. 2,320
19,700 Mobil Corp. 2,266
--------
4,586
--------
OILFIELD EQUIPMENT & SERVICES (1.3%):
40,000 Baker Hughes, Inc. 1,270
5,000 Schlumberger Ltd. 441
--------
1,711
--------
PHARMACEUTICALS (8.7%):
60,000 Abbott Laboratories 2,437
20,000 Alza Corp., Class A (b) 570
30,000 Merck & Co., Inc. 1,815
52,000 Pfizer, Inc. 3,582
45,000 ScheringPlough 2,582
--------
10,986
--------
RADIO & TELEVISION (1.0%):
30,000 Viacom, Class B (b) 1,230
--------
RETAIL -- SPECIALTY STORES (6.2%):
60,000 The Gap 1,807
60,000 Home Depot, Inc. 2,843
70,000 Wal Mart Stores, Inc. 1,671
50,000 Walgreen Co. 1,600
--------
7,921
--------
SEMICONDUCTORS (3.5%):
50,000 Intel Corp. 3,388
30,000 LSI Logic Corp. (b) 1,080
--------
4,468
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
SERVICES (NON-FINANCIAL) (0.9%):
20,000 Amgen, Inc. (b) $ 1,150
--------
SOAPS & CLEANING AGENTS (3.0%):
5,000 Colgate Palmolive, Inc. 383
40,000 Procter & Gamble Co. 3,380
--------
3,763
--------
SOFTWARE & COMPUTER SERVICES (4.0%):
32,000 Microsoft (b) 3,628
42,500 Oracle Systems Corp. (b) 1,434
--------
5,062
--------
TOBACCO & TOBACCO PRODUCTS (3.7%):
42,500 Philip Morris Cos., Inc. 3,830
25,000 UST, Inc. 800
--------
4,630
--------
TRANSPORTATION -- AIR (0.5%):
20,000 Southwest Airlines Co. 596
--------
UTILITIES -- TELECOMMUNICATIONS (5.5%):
55,000 AT&T Corp. 3,369
40,000 MCI Telecommunications Corp. 1,177
48,000 SBC Communications 2,400
--------
6,946
- ----------------------------------------------------------
TOTAL COMMON STOCKS 123,867
- ----------------------------------------------------------
TOTAL (COST $98,921) (A) $126,806
- ---
</TABLE>
- ---------------
Percentages indicated are based on net assets of $126,785.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows (amounts in thousands):
<TABLE>
<S> <C> <C> <C>
Unrealized appreciation $ 28,658
Unrealized depreciation (773)
--------
Net unrealized appreciation $ 27,885
=========
</TABLE>
(b) Represents non-income producing securities.
SEE NOTES TO FINANCIAL STATEMENTS.
66
<PAGE> 68
Schedule of Investments
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
SPECIAL VALUE FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
- ----------------------------------------------
COMMERCIAL PAPER (2.1%)
$ 5,099 General Electric Capital
Corp., 5.35%, 5/1/96 $ 5,099
- ----------------------------------------------------------
TOTAL COMMERCIAL PAPER 5,099
- ----------------------------------------------------------
- ----------------------------------------------
COMMON STOCKS (96.9%)
AEROSPACE/DEFENSE (2.8%):
113,400 GenCorp, Inc. 1,517
61,200 Litton Industries, Inc. (b) 2,777
58,000 Thiokol Corp. Delaware 2,480
--------
6,774
--------
AIRLINES (1.4%):
55,500 Atlantic Southeast Airlines 1,388
25,400 Delta Airlines 2,042
--------
3,430
--------
AUTOMOTIVE PARTS (3.7%):
63,500 Echlin, Inc. 2,183
46,200 Genuine Parts Co. 2,044
71,300 ITT Corp. 1,961
131,597 Mark IV Industries 2,731
--------
8,919
--------
BANKS (3.6%):
44,300 Bank Of Boston Corp. 2,143
30,100 Central Fidelity Banks, Inc. 1,038
62,700 First American Bank Corp. 2,837
71,600 Summit Bancorp 2,542
--------
8,560
--------
BEVERAGES (1.4%):
116,000 Coca-Cola Enterprises, Inc. 3,422
--------
BROADCASTING (1.1%):
67,100 Evergreen Media Corp. (b) 2,634
--------
CHEMICALS (2.8%):
74,000 Arcadian Corp. 1,480
33,700 Avery Dennison Corp. 1,921
150,000 RPM, Inc. 2,306
21,900 WD 40 Co. 1,018
--------
6,725
--------
COMMERCIAL SERVICES (0.6%):
52,000 Loewen Group, Inc. 1,554
--------
CONSTRUCTION (1.4%):
73,100 Foster Wheeler Corp. 3,381
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
CONSUMER GOODS (2.1%):
74,000 Jostens, Inc. $ 1,665
120,200 Newell Co. 3,426
--------
5,091
--------
CONTAINERS (1.3%):
107,550 Sonoco Products Co. 3,052
--------
ELECTRICAL EQUIPMENT (6.3%):
55,800 Arrow Electronics, Inc. (b) 2,797
42,500 Harris Corp. 2,624
33,700 Lam Research Corp. (b) 1,365
61,625 Molex Corp. 2,003
31,000 Varian Associates, Inc. 1,771
100,000 Vishay Intertechnology,
Inc. (b) 3,000
23,700 W.W. Grainger, Inc. 1,635
--------
15,195
--------
ENVIRONMENTAL CONTROL (0.9%):
207,650 Laidlaw, Inc., Class B 2,180
--------
FINANCIAL SERVICES (5.6%):
108,500 Bear Stearns Cos., Inc. 2,726
45,400 Donaldson, Lufkin & Jenrette 1,532
110,300 Equifax, Inc. 2,702
85,300 H & R Block 2,996
60,600 Northern Trust Corp. 3,409
--------
13,365
--------
FOOD & DRUG DISTRIBUTORS (0.3%):
27,000 Rite Aid Corp. 800
--------
FOOD PROCESSING & PACKAGING (2.3%):
75,100 Dean Foods Co. 1,755
26,000 Dole Food, Inc. 1,040
98,500 IBP, Inc. 2,635
--------
5,430
--------
FOREST PRODUCTS (0.8%):
76,100 Louisiana Pacific Corp. 1,912
--------
FURNITURE (0.8%):
70,600 Leggett & Platt, Inc. 1,818
--------
HOTELS & MOTELS (1.0%):
45,000 Mirage Resorts, Inc. (b) 2,357
--------
HOUSEHOLD GOODS -- APPLIANCES,
FURNISHING & ELECTRONICS (0.6%):
100,000 Sunbeam Corp. 1,388
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
67
<PAGE> 69
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
SPECIAL VALUE FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
INSURANCE (7.5%):
67,900 American Financial Group,
Inc. $ 2,079
38,600 American Re Corp. 1,602
66,000 Amerin Corp. (b) 1,493
57,700 Horace Mann Educators 1,897
72,600 PMI Group, Inc. 3,086
46,000 Progressive Corp. 2,145
133,000 Prudential Reinsurance
Holdings, Inc. 3,026
19,300 Transatlantic Holdings 1,264
87,000 USF&G Corp. 1,381
--------
17,973
--------
LEISURE -- RECREATION, GAMING (0.9%):
144,000 International Game
Technology 2,232
--------
MACHINE TOOLS (1.7%):
84,000 Albany International Corp. 1,806
63,200 Kennametal, Inc. 2,394
--------
4,200
--------
MANUFACURING (6.3%):
40,000 Briggs & Stratton Corp. 1,815
84,533 Federal Signal Corp. 2,208
43,500 Hillenbrand 1,653
74,500 Kaydon Corp. 2,961
56,466 Pall Corp. 1,581
73,324 Pentair, Inc. 1,998
73,500 Tyco Laboratories, Inc. 2,839
--------
15,055
--------
MEDICAL SERVICES (3.7%):
97,200 Coventry Corp. (b) 1,883
54,200 Integrated Health Services,
Inc. 1,491
139,000 Quorum Health Group (b) 3,527
66,655 Vivra, Inc. (b) 2,108
--------
9,009
--------
MEDICAL SUPPLIES (0.8%):
130,000 Biomet, Inc. (b) 1,918
--------
MERCHANDISING (0.7%):
81,300 Lands' End, Inc. 1,606
--------
METALS (2.9%):
56,800 Minerals Technologies, Inc. 2,187
119,400 Ucar Intl. (b) 4,895
--------
7,082
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
NEWSPAPERS (1.8%):
22,900 New York Times Co., Class A $ 744
50,400 Tribune Co. 3,515
--------
4,259
--------
OFFICE EQUIPMENT & SERVICES (0.8%):
51,050 Diebold, Inc. 1,965
82,100 Anadarko Petroleum 4,782
186,100 ENSERCH Exploration (b) 2,024
--------
6,806
--------
OIL & GAS PRODUCTION (1.2%):
41,000 Diamond Shamrock, Inc. 1,389
42,500 Vastar Resources, Inc. 1,546
--------
2,935
--------
OILFIELD EQUIPMENT & SERVICES (1.8%):
136,000 Baker Hughes, Inc. 4,318
--------
RADIO & TELEVISION (0.6%):
43,400 American Radio System (b) 1,465
--------
RAILROADS (0.9%):
115,000 Canadian National
Railway Co. 2,185
--------
REAL ESTATE INVESTMENT TRUSTS (3.7%):
97,200 Equity Residential
Properties Trust 3,135
110,000 Meditrust Corp. 3,726
92,000 Merry Land & Investment Co.,
Inc. 1,932
--------
8,793
--------
RESTAURANTS (1.0%):
128,800 Wendy's International 2,463
--------
RETAIL (3.3%):
70,900 Borders Group, Inc. (b) 2,269
113,900 Hannaford Brothers 3,189
65,400 MSC Industrial Direct, Class
A (b) 2,379
--------
7,837
--------
RUBBER (0.6%):
25,100 Bandag, Inc. 1,258
4,500 Bandag, Inc., Class A 218
--------
1,476
--------
SEMICONDUCTORS (1.7%):
111,100 LSI Logic Corp. (b) 4,000
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
68
<PAGE> 70
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
SPECIAL VALUE FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
SOFTWARE & COMPUTER SERVICES (0.6%):
3,700 Policy Management
Systems (b) $ 174
83,000 Symantec Corp. (b) 1,338
--------
1,512
--------
STEEL (0.9%):
103,870 Worthington Industries, Inc. 2,116
--------
TRANSPORTATION LEASING & TRUCKING (3.0%):
65,650 GATX Corp. 2,954
77,675 Illinois Central Corp. 2,330
66,000 Pittston Brinks Group 1,839
--------
7,123
--------
UTILITIES -- ELECTRIC (6.9%):
35,300 Brooklyn Union Gas Co. 927
43,030 DQE, Inc. 1,140
121,600 Florida Progress Corp. 4,013
159,300 Northeast Utilities 2,529
128,600 PP&L Resources, Inc. 2,910
81,900 Public Service Co. of
Colorado 2,713
75,300 Public Service Co. of New
Mexico 1,317
59,400 Washington Gas Light Co. 1,247
--------
16,796
- ----------------------------------------------------------
TOTAL COMMON STOCKS 233,111
- ----------------------------------------------------------
TOTAL (COST $201,944) (A) $238,210
- ----------------------------------------------------------
- ----------------------------------------------------------
</TABLE>
- ---------------
Percentages indicated are based on net assets of $240,687.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows (amounts in thousands):
<TABLE>
<S> <C> <C> <C>
Unrealized appreciation $ 40,103
Unrealized depreciation (3,837)
--------
Net unrealized appreciation $ 36,266
=========
</TABLE>
(b) Represents non-income producing securities.
SEE NOTES TO FINANCIAL STATEMENTS.
69
<PAGE> 71
Schedule of Investments
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
SPECIAL GROWTH FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
- ----------------------------------------------
COMMERCIAL PAPER (1.2%)
UTILITIES (1.2%):
$ 196 Nicor, Inc., 5.28%, 5/23/96 $ 195
740 Northern States Power,
5.32%,
5/21/96 738
- ------------------------------------------------------------
TOTAL COMMERCIAL PAPER 933
- ------------------------------------------------------------
- ----------------------------------------------
COMMON STOCKS (98.8%)
ADVERTISING (0.4%):
4,400 Catalina Marketing Group
Corp. (b) 343
----------
AEROSPACE/DEFENSE (0.8%):
2,500 Alliant Techsystems, Inc.
(b) 118
6,400 Oea, Inc. 251
7,000 Precision Castparts 304
----------
673
----------
AGRICULTURE & LIVESTOCK (0.5%):
9,500 Delta & Pine Land Co. 424
----------
AUTOMOTIVE PARTS (1.1%):
8,000 Exide Corp. 225
6,200 Gentex Corp. (b) 245
10,100 Intermet Corp. (b) 149
7,600 Kaydon Corp. 302
----------
921
----------
BANKS (0.3%):
13,300 Peoples Heritage Financial
Group 278
----------
BROADCASTING (2.2%):
6,000 Emmis Broadcasting, Inc.,
Class A (b) 258
5,500 Evergreen Media Corp. (b) 216
8,600 Heartland Wireless
Communications, Inc. (b) 240
8,500 Heritage Media Corp.,
Class A (b) 326
11,000 TCA Cable TV, Inc. 322
11,000 United International
Holdings (b) 158
13,000 Westwood One, Inc. (b) 227
----------
1,747
----------
BUILDING MATERIALS (0.7%):
7,600 Medusa Corp. 222
7,300 Oakwood Homes Corp. 326
----------
548
----------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
CHEMICALS (2.2%):
10,700 Church & Dwight Co., Inc. $ 235
5,500 First Mississippi Corp. 128
7,500 Learonal, Inc. 195
27,200 Lilly Industries, Inc.,
Class A 394
6,200 Om Group, Inc. 236
7,300 Synalloy Corp. 140
10,000 WD 40 Co. 465
----------
1,793
----------
COMMERCIAL SERVICES (4.8%):
3,800 Affiliated Computer
Services, Inc. (b) 181
8,275 Apollo Group, Class A (b) 364
5,000 Career Horizons, Inc. (b) 176
10,750 Concord EFS, Inc. (b) 360
8,000 Corrections Corp.
of America (b) 510
10,600 Health Management Systems,
Inc. (b) 273
8,250 ITT Educational Services (b) 256
1,000 Integrated Systems
Consulting Group (b) 18
6,000 Primark Corp. (b) 213
6,400 Quintiles Transnational
Corp. (b) 469
8,900 Robert Half International,
Inc. (b) 512
21,900 Sothebys Holdings, Class A 309
7,000 Sylvan Learning Center (b) 271
----------
3,912
----------
COMPUTERS & PERIPHERALS (6.2%):
5,500 Chesapeake Corp. 159
10,000 Cheyenne Software, Inc. (b) 227
13,200 Cognex Corp. (b) 353
7,600 Davidson & Associates (b) 205
4,000 FileNet Corp. (b) 224
7,400 Henry (Jack) & Associates 232
7,700 In Focus Systems, Inc. (b) 389
5,300 McAfee Associates, Inc. (b) 325
5,200 Minnesota Educational
Computing Corp. (b) 163
8,000 Network General Corp. (b) 353
3,000 Oak Technology, Inc. (b) 54
6,000 Safeguard Scientifics, Inc.
(b) 402
8,400 Shiva Corp. (b) 502
5,200 Sterling Commerce, Inc. (b) 404
6,600 Sungard Data Systems,
Inc. (b) 219
9,300 VeriFone, Inc. (b) 391
7,000 Wonderware Corp. (b) 157
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
70
<PAGE> 72
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
SPECIAL GROWTH FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
6,200 Zilog, Inc. (b) $ 233
----------
4,992
----------
CONSUMER GOODS (1.0%):
14,000 Bell Industries (b) 310
4,000 Sola International, Inc. (b) 131
10,710 Tootsie Roll Industries 380
----------
821
----------
ELECTRICAL EQUIPMENT (4.9%):
12,000 Belden, Inc. 357
7,600 C-Cube Microsystems,
Inc. (b) 376
9,750 Cable Design
Technologies (b) 322
13,000 Checkpoint Systems, Inc. (b) 388
4,000 CIDCO, Inc. (b) 143
1,800 Electro Scientific, Inc. (b) 43
8,500 FORE Systems, Inc. (b) 671
13,000 Input/Output, Inc. (b) 452
4,600 ITI Technologies, Inc. (b) 127
5,000 Littelfuse, Inc. (b) 187
11,750 Methode Electronics, Inc. 197
6,000 Pioneer-Standard
Electronics, Inc. 97
9,800 SCI Systems, Inc. (b) 420
11,500 Tech Data Corp. (b) 224
----------
4,004
----------
ELECTRICAL & ELECTRONICS (4.2%):
7,000 Allen Group 173
11,500 AMETECK, Inc. 221
5,250 Harman International 248
14,000 Kent Electronics Corp. (b) 590
5,000 Lam Research Corp. (b) 202
8,000 Lattice Semiconductor (b) 262
12,000 Rexel, Inc. (b) 160
14,800 Sanmina Corp. (b) 525
6,000 Teleflex, Inc. 278
9,000 Thermedics, Inc. (b) 272
5,500 Thermotrex Corp. (b) 288
7,200 Ultratech Stepper, Inc. (b) 188
----------
3,407
----------
ENTERTAINMENT (0.3%):
10,000 Carmike Cinemas, Inc.,
Class A (b) 266
----------
ENVIRONMENTAL CONTROL (2.4%):
5,200 Donaldson Co, Inc. 137
9,900 Sanifill, Inc. (b) 429
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
10,500 U.S.A. Waste Services,
Inc. (b) $ 273
9,700 United States Filter Corp.
(b) 298
7,800 United Waste Systems,
Inc. (b) 429
8,800 Western Waste Industries (b) 342
----------
1,908
----------
FINANCIAL SERVICES (3.7%):
8,300 Aames Financial Corp. 366
9,200 Eaton Vance Corp. 281
1,167 Investors Financial
Services (b) 25
6,000 JSB Financial, Inc. (b) 203
8,000 The Money Store, Inc. 202
10,500 North American Mortgage Co. 177
10,200 Pioneer Group, Inc. 273
11,950 Quick & Reilly Group 364
5,900 Silicon Valley Bancshares
(b) 137
5,500 U.S. Trust Corp. 301
12,100 Value Line, Inc. 405
7,250 Waterhouse Investor Services 262
----------
2,996
----------
FOOD PROCESSING & PACKAGING (0.2%):
10,200 Goodmark Foods 164
----------
FURNITURE (0.2%):
4,900 La Z Boy Chair Co. 145
----------
HEALTH CARE SERVICES (0.5%):
7,000 Genesis Health Ventures,
Inc. (b) 207
7,000 Res-Care, Inc. (b) 200
----------
407
----------
HOSPITAL & NURSING EQUIPMENT & SUPPLIES (1.1%):
11,000 Invacare Corp. 286
6,800 Omnicare, Inc. 408
7,500 Vital Signs, Inc. 158
----------
852
----------
HOTELS & MOTELS (0.4%):
6,200 Doubletree Corp. (b) 200
4,900 Marcus Corp. 137
----------
337
----------
HOUSEHOLD GOODS -- APPLIANCES, FURNISHINGS
& ELECTRONICS (0.3%):
8,500 Williams-Sonoma Co. (b) 213
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
71
<PAGE> 73
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
SPECIAL GROWTH FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
INDUSTRIAL SERVICES (0.8%):
6,000 Peak Technologies Group,
Inc. (b) $ 146
16,900 Unitog Co. 469
----------
615
----------
INSURANCE (1.3%):
5,800 CMAC Investment Corp. 325
8,900 Gallagher (Arthur J.) & Co. 289
300 Maxicare Health Plans,
Inc. (b) 6
3,900 Reliastar Financial Corp. 170
8,850 Vesta Insurance Group 284
----------
1,074
----------
LEISURE -- RECREATION, GAMING (0.4%):
7,200 Sturm Ruger & Co. 291
----------
MACHINERY & ENGINEERING (1.5%):
11,000 Alamo Group, Inc. 217
5,600 Applied Power, Inc., Class A 176
5,500 Credence Systems Corp. (b) 119
5,100 Helix Technology Corp. 192
7,500 IDEX Corp. 294
4,600 JLG Industries, Inc. 251
----------
1,249
----------
MACHINE TOOLS (1.2%):
7,000 Cascade Corp. 114
3,000 FSI International, Inc. (b) 44
7,900 Greenfield Industries 300
6,300 Roper Industries, Inc. 293
11,200 Telxon Corp. 258
----------
1,009
----------
MANUFACTURING -- MISCELLANEOUS (0.9%):
6,500 AptarGroup, Inc. 245
7,000 Fisher Scientific
International 262
5,500 Plantronics, Inc. (b) 221
----------
728
----------
MEDICAL -- BIOTECHNOLOGY (1.5%):
10,800 Alliance Pharmaceutical (b) 196
15,500 Liposome Co., Inc. (b) 380
10,000 Mentor Corp. 236
10,700 Protein Design Labs, Inc.
(b) 284
8,800 Somatogen, Inc. (b) 144
----------
1,240
----------
MEDICAL SERVICES (7.9%):
4,000 ABR Information Services,
Inc. (b) 250
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
2,000 American Oncology
Resources (b) $ 96
14,000 Apria Healthcare Group,
Inc. (b) 476
3,300 Coherent, Inc. (b) 177
8,900 Community Health Systems,
Inc. (b) 386
6,400 Express Scripts, Inc.,
Class A (b) 317
10,000 Gelman Sciences, Inc. (b) 266
12,500 Lincare Holdings (b) 485
9,000 Living Centers of America
(b) 333
8,000 Magellan Health Services (b) 172
7,398 Medpartners/Mullikin, Inc. 214
10,000 Mid-Atlantic Medical
Services, Inc. (b) 195
7,400 Nellcor Puritan Bennett,
Inc. (b) 363
12,800 OrNda Healthcorp (b) 352
16,800 Orthodontic Centers of
America (b) 664
10,200 PhyCor, Inc. (b) 502
3,900 Physician Health Services
(b) 128
11,200 Renal Treatment Centers,
Inc. (b) 325
9,200 Sierra Health Services (b) 304
11,300 Vivra, Inc. (b) 357
----------
6,362
----------
MEDICAL SUPPLIES (3.5%):
5,300 AMSCO International,
Inc. (b) 77
9,100 American Medical Response,
Inc. (b) 337
9,200 Diagnostic Products Corp. 385
2,800 Fresenius USA, Inc. (b) 56
6,200 Haemonetics Corp. (b) 119
7,500 IDEXX Laboratories, Inc. 334
8,200 Life Technologies 234
7,000 MediSense, Inc. (b) 315
4,500 PLC Systems, Inc. (b) 134
8,000 Sofamor Danek Group,
Inc. (b) 262
4,500 STERIS Corp. (b) 146
13,300 Summit Technology, Inc. (b) 238
4,000 Target Therapeutics, Inc.
(b) 217
----------
2,854
----------
MERCHANDISING (0.3%):
12,000 Lands' End, Inc. 237
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
72
<PAGE> 74
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
SPECIAL GROWTH FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
METALS -- FABRICATION (1.1%):
6,000 Kennametal, Inc. $ 227
8,900 Mueller Industries, Inc. (b) 358
7,000 Quanex Corp. 154
5,000 Wolverine Tube, Inc. (b) 184
----------
923
----------
MINING (0.9%):
12,000 Addington Resources, Inc.
(b) 165
8,100 Coeur D'Alene Mines Corp. 161
3,896 Firstmiss Gold, Inc. (b) 120
6,500 Minerals Technologies, Inc. 250
----------
696
----------
OFFICE EQUIPMENT & SUPPLIES
(NON-COMPUTER REL) (0.3%):
10,800 American Business Products 235
----------
OIL & GAS EXPLORATION, PRODUCTION & SERVICES (2.7%):
7,000 Barrett Resources Corp. (b) 194
8,000 Camco International, Inc. 285
14,000 Devon Energy Corp. 357
12,200 Newfield Exploration (b) 418
14,300 Smith International, Inc.
(b) 425
13,000 United Meridian Corp. (b) 403
2,000 Weatherford Enterra, Inc.
(b) 71
----------
2,153
----------
OILFIELD EQUIPMENT & SERVICES (0.9%):
11,200 BJ Services Co. (b) 430
17,200 Pride Petroleum Services (b) 282
----------
712
----------
PHARMACEUTICALS (4.4%):
9,100 Alpharma, Inc., Class A 223
12,000 Amylin Pharmaceuticals (b) 114
9,900 Centocor (b) 396
4,900 Dura Pharmaceuticals (b) 262
13,600 Gilead Sciences, Inc. (b) 415
8,300 Human Genome Sciences,
Inc. (b) 330
20,200 Immunex Corp. (b) 316
10,200 INCYTE Pharmaceuticals,
Inc. (b) 328
14,000 ISIS Pharmaceuticals,
Inc. (b) 179
11,400 Matrix Pharmaceutical (b) 296
3,000 Neurogen Corp. (b) 86
11,300 Theratech, Inc. (b) 260
8,000 Watson Pharmaceutical (b) 380
----------
3,585
----------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
PRECISION INSTRUMENTS & RELATED (0.4%):
8,000 Dionex Corp. (b) $ 293
----------
PRINTING (0.3%):
9,200 Banta Corp. 225
----------
PUBLISHING (1.9%):
5,700 A.H. Belo Corp., Series A 212
8,100 Edmark Corp. 237
11,200 Harte-Hawks 265
5,000 Houghton Mifflin Co. 232
9,200 Meredith Corp. 417
10,800 Valassis Communications (b) 170
----------
1,533
----------
RADIO & TELEVISION (0.5%):
13,250 Renaissance Communications
Corp. (b) 366
----------
REAL ESTATE INVESTMENT TRUSTS (3.6%):
8,000 Beacon Corp. 205
7,200 Cali Realty Corp. 165
4,500 Chelsea GCA Realty, Inc. 128
6,500 Crescent Real Estate
Equities, Inc. 220
8,000 DeBartolo Realty Corp. 124
3,900 Developers Divers Realty 114
8,000 Federal Realty Investment
Trust 174
6,500 General Growth Properties 152
5,500 Liberty Property Trust 113
6,000 National Health Investors,
Inc. 200
12,000 Nationwide Health
Properties, Inc. 239
5,900 Post Properties, Inc. 198
4,800 Reckson Associates Realty
Corp. 143
8,500 Saul Centers, Inc. 122
7,000 Spieker Properties, Inc. 182
5,000 Starwood Lodging Trust 166
6,500 Summit Properties, Inc. 124
7,000 Weeks Corp. 171
----------
2,940
----------
RECREATION & OTHER CONSUMER GOODS (0.2%):
5,700 IHOP Corp. (b) 162
----------
RESTAURANTS (0.9%):
8,800 Apple South, Inc. 229
8,000 Applebees International,
Inc. 212
9,800 Sbarro, Inc. 257
----------
698
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
73
<PAGE> 75
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
SPECIAL GROWTH FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
RETAIL (1.3%):
6,000 Circle K Corp. (b) $ 188
8,300 Gymboree Corp. (b) 215
5,000 Micro Warehouse, Inc. (b) 215
10,200 Nautica Enterprises, Inc.
(b) 474
----------
1,092
----------
RETAIL -- SPECIALTY STORES (3.2%):
4,000 Boise Cascade Products
Corp. (b) 313
8,500 Borders Group, Inc. (b) 272
5,700 CDW Computer Centers,
Inc. (b) 441
14,000 CompUSA, Inc. (b) 485
9,300 Men's Wearhouse (b) 344
7,100 Tiffany & Co. 463
13,800 Zale Corp. (b) 257
----------
2,575
----------
SAVINGS & LOAN COMPANIES (0.2%):
7,400 FirstBank Puerto Rico 170
----------
SEMICONDUCTORS (1.4%):
9,600 Actel Corp. (b) 178
18,000 International Rectifier
Corp. (b) 405
3,200 Linear Technology 110
17,400 S-3, Inc. (b) 246
10,000 Sierra Semiconductor (b) 164
----------
1,103
----------
SERVICES (NON-FINANCIAL) (0.4%):
9,000 Structural Dynamics Research
Corp. (b) 287
----------
SHOES, LEATHER GOODS & CLOTHING ACCESSORIES (0.4%):
9,200 Wolverine World Wide 284
----------
SOAPS & CLEANING AGENTS (0.2%):
7,600 Control Data Systems,
Inc. (b) 179
----------
SOFTWARE & COMPUTER SERVICES (8.3%):
12,400 Acxiom Corp. (b) 341
12,900 American Management
Systems, Inc. 343
8,000 Analysts International Corp. 302
8,400 Applix, Inc. (b) 328
4,600 BBN Corp. (b) 130
12,000 Commercial Metals Co. 360
9,900 Continuum Co., Inc. (b) 564
9,000 Electronics For Imaging,
Inc. (b) 549
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
3,000 Epic Design Technology,
Inc. (b) $ 182
4,500 Expert Software, Inc. (b) 59
4,246 HCIA, Inc. (b) 229
10,600 Macromedia, Inc. (b) 399
3,200 Medic Computer (b) 299
12,300 National Data Corp. 434
6,800 ParGain Technologies,
Inc. (b) 649
4,800 Project Software &
Development, Inc. (b) 168
6,000 Security Dynamics
Technologies (b) 507
9,400 Sierra On-Line, Inc. (b) 369
17,000 Symantec Corp. (b) 274
4,500 Wallace Computer Services,
Inc. 266
----------
6,752
----------
STEEL (0.2%):
3,500 Carpenter Technology 132
----------
TEXTILE MANUFACTURING (0.3%):
10,700 Authentic Fitness Corp. 255
----------
TOBACCO & TOBACCO PRODUCTS (0.2%):
9,100 Dimon, Inc. 155
----------
TRANSPORTATION (1.7%):
8,000 Air Express International 224
10,500 Comair Holding, Inc. 389
4,000 Fritz Cos. (b) 147
14,000 Landstar System, Inc. (b) 385
10,700 Railtex, Inc. (b) 262
----------
1,407
----------
UTILITIES -- TELECOMMUNICATIONS (4.9%):
12,200 Aspect Telecommunications
(b) 702
8,000 BroadBand Technologies,
Inc. (b) 204
6,000 Cellular Communications,
Class A (b) 315
5,000 Cellular Communication of
Puerto Rico (b) 134
13,100 Centennial Cellular (b) 215
9,100 Coherent Communications
Systems Corp. (b) 175
5,800 CommNet Celular, Inc. (b) 191
15,000 Digi International, Inc. (b) 424
4,500 DSP Communications,
Inc. (b) 179
9,200 Lincoln Communications 156
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
74
<PAGE> 76
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
SPECIAL GROWTH FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
7,100 Network Equipment
Technologies, Inc. (b) $ 181
11,800 Picturetel Corp. (b) 401
5,900 Premisys Communications,
Inc. (b) 258
18,000 U.S. Long Distance Corp. (b) 464
----------
3,999
----------
WINE & SPIRITS (0.3%):
8,100 Robert Mondavi Corp. (b) 223
- ------------------------------------------------------------
TOTAL COMMON STOCKS 79,944
- ------------------------------------------------------------
- ----------------------------------------------
U.S. TREASURY BILLS (0.2%)
$ 123 4.91%, 6/6/96 122
- ------------------------------------------------------------
TOTAL U.S. TREASURY BILLS 122
- ------------------------------------------------------------
TOTAL (COST $64,861)(A) $ 80,999
- ------------------------------------------------------------
- ------------------------------------------------------------
</TABLE>
- ---------------
Percentages indicated are based on net assets of $80,948.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C> <C> <C>
Unrealized appreciation $ 18,188
Unrealized depreciation (2,050)
----------
Net unrealized appreciation $ 16,138
==========
</TABLE>
(b) Represents non-income producing securities.
SEE NOTES TO FINANCIAL STATEMENTS.
75
<PAGE> 77
Schedule of Investments
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
OHIO REGIONAL STOCK FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
- ---------------------------------------------------------
COMMERCIAL PAPER/
MASTER DEMAND NOTES (3.4%):
FINANCIAL SERVICES (3.4%):
$ 1,501 General Electric Credit
Corp.,
5.35%, 5/1/96 $ 1,500
- ------------------------------------------------------------
TOTAL COMMERCIAL PAPER/MASTER DEMAND NOTES 1,501
- ------------------------------------------------------------
- ----------------------------------------------
COMMON STOCKS (96.6%)
AMUSEMENT & RECREATION SERVICES (0.6%):
7,000 Cedar Fair L.P. 250
----------
AUTOMOTIVE PARTS (5.8%):
24,000 Dana Corp. 798
19,800 Myers Industries, Inc. 359
15,000 TRW, Inc. 1,408
----------
2,565
----------
BANKS (8.1%):
24,000 Charter One Financial, Inc. 837
19,000 First Merit Corp. 575
9,843 Huntington Bancshares, Inc. 239
20,000 National City Corp. 737
15,000 Provident Bancorp 765
2,000 Second Bancorp 60
6,000 Star Bank 395
----------
3,608
----------
BUILDING MATERIALS (1.5%):
10,000 Medusa Corp. 293
10,000 Owens Corning
Fiberglass Corp. (b) 403
----------
696
----------
CHEMICALS (5.8%):
12,500 A. Schulman, Inc. 272
15,000 Chemed Corp. 564
10,500 Chempower, Inc. (b) 40
20,000 Ferro Corp. 555
9,000 Lubrizol Corp. 261
10,000 OM Group, Inc. 381
32,812 RPM, Inc. 504
----------
2,577
----------
COMPUTERS & PERIPHERALS (0.0%):
1,000 Lanvision (b) 18
----------
CONSUMER GOODS (2.4%):
14,000 American Greetings Corp. 387
15,000 Cincinnati Microwave,
Inc.(b) 50
43,000 Gibson Greetings, Inc. (b) 607
----------
1,044
----------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
ELECTRICAL EQUIPMENT (4.6%):
78,500 Pioneer-Standard
Electronics, Inc. $ 1,276
20,000 Robbins & Myers, Inc. 770
----------
2,046
----------
ENGINEERING, INDUSTRIAL CONSTRUCTION (0.2%):
10,000 Corrpro (b) 79
----------
FINANCIAL SERVICES (3.0%):
16,500 Haverfield Corp. 297
18,000 McDonald & Co. Investments 369
27,000 State Auto Financial 655
----------
1,321
----------
FOOD DISTRIBUTORS (1.0%):
10,000 Chiquita Brands
International 146
7,000 Kroger Co. (b) 288
----------
434
----------
FOOD PROCESSING & PACKAGING (0.2%):
5,000 Smuckers, Class A 106
----------
FOREST PRODUCTS (3.1%):
12,000 Mead Corp. 667
15,000 Reynolds & Reynolds Co. 694
----------
1,361
----------
HEALTH CARE (0.2%):
9,000 Health Power, Inc. (b) 85
----------
HOSPITAL & NURSING EQUIPMENT (6.7%):
38,000 Invacare Corp. 988
33,000 Omnicare, Inc. 1,980
----------
2,968
----------
HOUSEHOLD GOODS (2.1%):
25,000 Lancaster Colony Corp. 844
20,000 Sun Television & Appliance 79
----------
923
----------
INDUSTRIAL SERVICES (2.7%):
26,000 ACME Cleveland Corp. 783
22,000 Amcast Industrial Corp. 423
----------
1,206
----------
INSURANCE (3.4%):
3,150 Cincinnati Financial Corp. 186
18,000 Ohio Casualty 621
15,000 Progressive Corp. 699
----------
1,506
----------
MACHINE TOOLS (8.1%):
23,625 Bearings, Inc. 756
17,000 Cincinnati Milacron, Inc. 448
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
76
<PAGE> 78
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
OHIO REGIONAL STOCK FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
37,050 Commercial Intertech Corp. $ 704
46,500 Gorman Rupp Co. 686
14,000 Lincoln Electric Co. 392
5,000 Monarch Machine Tool Co. 54
24,000 Telxon Corp. 552
----------
3,592
----------
MANUFACTURING (1.4%):
15,000 Parker-Hannifin Corp. 634
----------
MEDICAL -- BIOTECHNOLOGY (0.2%):
5,000 Gliatech, Inc. (b) 67
----------
MEDICAL SUPPLIES (0.2%):
10,000 Meridian Diagnostics 95
----------
METALS (0.9%):
10,000 Brush Wellman, Inc. 187
7,000 Cold Metal Products, Inc.
(b) 39
10,000 Park-Ohio Industries, Inc.
(b) 186
----------
412
----------
OFFICE EQUIPMENT & SUPPLIES (3.0%):
34,500 Diebold, Inc. 1,328
----------
OIL & GAS EXPLORATION (3.4%):
68,000 USX -- Marathon Group 1,496
----------
PAINT, VARNISHES & ENAMELS (1.5%):
14,000 Sherwin Williams Co. 654
----------
POLLUTION CONTROL SERVICES (0.2%):
51,100 Mid American Waste
Systems (b) 70
----------
PRECISION INSTRUMENTS (1.8%):
60,000 Keithley Instruments, Inc. 795
----------
PUBLISHING (3.3%):
35,000 Scripps (E.W.) Co. 1,488
----------
REAL ESTATE INVESTMENT TRUSTS (0.8%):
16,000 Health Care Reit, Inc. 368
----------
RESTAURANTS (2.2%):
29,500 Bob Evans Farms, Inc. 465
10,800 Frisch's Restaurants 108
22,000 Wendy's International 421
----------
994
----------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
RETAIL (1.7%):
17,000 Fabri-Centers of America,
Inc. (b) $ 174
17,000 Fabri-Centers of
America-- B (b) 170
15,000 The Limited, Inc. 311
10,000 Value City Department
Stores, Inc. (b) 90
----------
745
----------
RUBBER & RUBBER PRODUCTS (1.7%):
5,000 Cooper Tire & Rubber Co. 123
12,000 Goodyear Tire & Rubber Co. 626
----------
749
----------
SAVINGS & LOAN COMPANIES (0.2%):
2,550 Mahoning National
Bancorp (b) 106
----------
SERVICES (NON-FINANCIAL) (0.3%):
4,200 Roto Rooter, Inc. 131
----------
SHIPPING (0.3%):
3,000 Oglebay Norton Co. 124
----------
STEEL (2.3%):
35,000 Shiloh (b) 503
25,000 Worthington Industries, Inc. 509
----------
1,012
----------
TEXTILE MANUFACTURING (0.8%):
25,000 Essef Corp. (b) 372
----------
TOOLS & HARDWARE MANUFACTURING (0.8%):
9,000 Timken Co. 357
----------
TRANSPORTATION (3.3%):
6,000 Caliber System, Inc. 241
31,500 Comair Holding, Inc. 1,166
3,000 Roadway Express, Inc. (b) 45
----------
1,452
----------
TRUCKS (0.9%):
20,000 Thor Industries, Inc. 383
----------
UTILITIES -- ELECTRIC (2.7%):
14,000 American Electric Power 569
22,500 D.P.L., Inc. 515
5,000 Ohio Edison 104
----------
1,188
----------
UTILITIES -- TELECOMMUNICATIONS (3.2%):
29,000 Cincinnati Bell 1,428
- ------------------------------------------------------------
TOTAL COMMON STOCKS 42,833
- ------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
77
<PAGE> 79
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
OHIO REGIONAL STOCK FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
- ----------------------------------------------
RIGHTS & WARRANTS (0.0%)
10,000 Cincinnati Microwave Inc.,
Warrants (b) $ 20
- ------------------------------------------------------------
TOTAL RIGHTS & WARRANTS 20
- ------------------------------------------------------------
TOTAL (COST $26,471)(A) $ 44,353
- ------------------------------------------------------------
</TABLE>
- ---------------
Percentages indicated are based on net assets of $44,334.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows (amounts in thousands):
<TABLE>
<S> <C> <C> <C>
Unrealized appreciation $ 19,366
Unrealized depreciation (1,484)
----------
Net unrealized appreciation $ 17,882
==========
</TABLE>
(b) Represents non-income producing securities.
SEE NOTES TO FINANCIAL STATEMENTS.
78
<PAGE> 80
Schedule of Investments
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
INTERNATIONAL GROWTH FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
- ----------------------------------------------
COMMERCIAL PAPER (2.3%)
FINANCIAL SERVICES (2.3%):
$ 2,742 General Electric Capital
Corp., 5.35%, 5/1/96 $ 2,742
- ----------------------------------------------------------
TOTAL COMMERCIAL PAPER 2,742
- ----------------------------------------------------------
- ----------------------------------------------
COMMON STOCKS (94.8%)
AUSTRALIA (1.4%):
ENERGY SOURCES (1.0%):
80,211 The Broken Hill Properietary
Co. Ltd. 1,236
--------
METALS (0.2%):
234,000 Australian National
Industries Ltd. 213
--------
OIL & GAS PRODUCTION (0.2%):
43,000 Australian Gas Light Co. 179
- ----------------------------------------------------------
TOTAL AUSTRALIA 1,628
- ----------------------------------------------------------
AUSTRIA (0.5%):
BANKS (0.5%):
8,100 Creditanstalt Bankverein 549
- ----------------------------------------------------------
TOTAL AUSTRIA 549
- ----------------------------------------------------------
BELGIUM (1.7%):
CHEMICALS (0.8%):
1,600 Solvay SA 939
--------
OIL & GAS PRODUCTION (0.9%):
3,790 Petrofina SA 1,121
- ----------------------------------------------------------
TOTAL BELGIUM 2,060
- ----------------------------------------------------------
BRITAIN (15.6%):
BANKS (2.3%):
232,000 Allied Irish Bank 1,215
93,000 National Westminster Bank 855
75,400 Standard Chartered Bank 704
--------
2,774
--------
BUSINESS & PUBLIC SERVICES (1.0%):
164,500 Carlton Communications PLC 1,150
--------
CHEMICALS (0.9%):
82,900 Imperial Chemical Industries
PLC 1,120
--------
CONGLOMERATES (0.2%):
64,000 Tomkins PLC 265
--------
ELECTRICAL EQUIPMENT (0.7%):
150,000 BICC Group 781
--------
FOOD PROCESSING & PACKAGING (1.0%):
175,000 Grand Metropolitan PLC 1,148
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
HOTELS & MOTELS (0.6%):
75,000 Greenalls Group PLC $ 702
--------
INSURANCE (0.6%):
100,000 Guardian Royal Exchange PLC 338
178,200 Willis Corron Group 414
--------
752
--------
MANUFACTURING (0.2%):
100,000 Ladbroke 293
--------
METALS (0.6%):
254,000 British Steel PLC 757
--------
OIL & GAS PRODUCTION (1.1%):
145,749 British Petroleum 1,311
--------
PHARMACEUTICALS (1.3%):
120,000 Glaxo Wellcome PLC 1,451
--------
RETAIL (0.6%):
500,000 Sears PLC 754
--------
TELECOMMUNICATIONS SERVICES (1.4%):
120,000 British Telecom PLC 656
83,500 Cable Wireless 653
100,000 Orange PLC 359
--------
1,668
--------
TOBACCO & TOBACCO PRODUCTS (0.6%):
99,732 B.A.T. Industries PLC 752
--------
UTILITIES -- ELECTRIC (1.3%):
44,600 London Electric 554
102,100 Northern Electric 1,004
--------
1,558
--------
UTILITIES -- WATER (1.2%):
117,000 Hyder PLC 1,287
- ----------------------------------------------------------
TOTAL BRITAIN 18,523
- ----------------------------------------------------------
DENMARK (0.7%):
BANKS (0.4%):
7,500 Den Danske Banking 488
--------
MEDICAL SUPPLIES (0.3%):
5,000 Radiometer, Class B 375
- ----------------------------------------------------------
TOTAL DENMARK 863
- ----------------------------------------------------------
FINLAND (0.8%):
METAL -- FABRICATION (0.8%):
56,400 Outokumpu 982
- ----------------------------------------------------------
TOTAL FINLAND 982
- ----------------------------------------------------------
FRANCE (6.1%):
AUTOMOTIVE PARTS (0.5%):
9,700 Valeo 537
--------
BANKS (0.6%):
6,000 Societe Generale 695
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
79
<PAGE> 81
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
INTERNATIONAL GROWTH FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
BUILDING MATERIAL (0.4%):
4,150 Saint Gobain $ 496
--------
BUSINESS SERVICES (0.9%):
5,000 Ecco Commerical Services 1,121
--------
DIVERSIFIED (0.8%):
17,600 Lagardere 472
14,780 Nord-EST 401
--------
873
--------
ENERGY SOURCES (0.7%):
11,200 Elf Aquitaine 832
--------
FOREST PRODUCTS & PAPER (0.4%):
1,500 St. Louis 436
--------
FOOD PROCESSING & PACKAGING (1.3%):
10,500 Groupe Danone 1,584
--------
INSURANCE (0.5%):
10,800 Axa 642
- ----------------------------------------------------------
TOTAL FRANCE 7,216
- ----------------------------------------------------------
GERMANY (6.3%):
BANKS (0.9%):
4,920 Commerzbank AG 1,066
--------
CHEMICALS (2.3%):
7,200 BASF AG 1,957
2,000 Henkel KGAA 768
--------
2,725
--------
INSURANCE (0.7%):
500 Allianz Holdings 852
--------
MACHINERY & ENGINEERING (1.1%):
2,300 Siemens AG 1,255
--------
PUBLISHING -- NEWSPAPER (0.1%):
257 Axel Springer 165
--------
UTILITIES -- ELECTRIC (1.2%):
28,750 Veba 1,418
- ----------------------------------------------------------
TOTAL GERMANY 7,481
- ----------------------------------------------------------
HOLLAND (1.3%):
FINANCIAL SERVICES (1.3%):
20,500 Internationale Nederlanden 1,581
- ----------------------------------------------------------
TOTAL HOLLAND 1,581
- ----------------------------------------------------------
HONG KONG (3.0%):
BANKS (0.5%):
53,000 Hang Seng Bank 538
--------
DIVERSIFIED (0.8%):
162,000 Hutchinson Whampoa 1,005
--------
REAL ESTATE (1.3%):
79,000 Sun Hung Kai Properties 753
914,000 Tai Cheung Holdings 809
--------
1,562
--------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
TRANSPORTATION -- MARINE (0.4%):
700,000 Shun Tak Holdings Ltd. $ 507
- ----------------------------------------------------------
TOTAL HONG KONG 3,612
- ----------------------------------------------------------
ITALY (3.1%):
AUTOMOTIVE (0.6%):
370,000 Fiat 673
--------
BANKS (0.8%):
4,720 Banco Ambrosiano 905
--------
INSURANCE (0.7%):
33,000 Assicurazioni Generali 822
--------
UTILITIES -- TELECOMMUNICATIONS (1.0%):
2,590 Telecom Italia 1,324
- ----------------------------------------------------------
TOTAL ITALY 3,724
- ----------------------------------------------------------
JAPAN (38.8%):
AEROSPACE/DEFENSE (1.0%):
140,000 Mitsubishi Heavy Industry 1,248
--------
AUTOMOBILES (1.8%):
66,000 Honda Motor Co. 1,506
30,000 Toyota Motor Co. 684
--------
2,190
--------
BANKS (7.8%):
218,000 Ashikaga Bank 1,471
77,000 Dai-Ichi Kangyo Bank 1,566
97,000 Daito Trust 1,435
88,000 Hachijuni Bank 1,016
164,000 Higo Bank 1,425
353,000 Yasuda Trust & Banking 2,339
--------
9,252
--------
BREWERIES (1.0%):
95,000 Kirin Brewery Co. 1,233
--------
BUILDING MATERIALS (0.8%):
31,000 Tostem Corp. 962
--------
CHEMICALS (1.6%):
47,250 Shin Etsu Chemical 1,033
48,000 Takeda Chemical Industries 829
--------
1,862
--------
ELECTRICAL EQUIPMENT (4.9%):
134,000 Hitachi Ltd. 1,445
40,000 Kansai Electric 970
17,000 Kyocera 1,279
96,000 Matsushita Electric Works 1,091
16,000 Sony Corp. 1,039
--------
5,824
--------
ENGINEERING/INDUSTRIAL CONSTRUCTION (1.2%):
150,000 Aida Engineering 1,432
--------
FINANCE (2.3%):
430,000 Orient Corp. 2,709
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
80
<PAGE> 82
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
INTERNATIONAL GROWTH FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
FOOD PROCESSING (2.1%):
100,000 Katokichi $ 2,492
--------
HOUSING CONSTRUCTION (2.6%):
250,000 Sekisui House 3,102
--------
INSURANCE (1.1%):
95,000 Tokio Marine & Fire
Insurance 1,306
--------
PHARMACEUTICALS (2.0%):
53,000 Taisho Pharmaceutical 1,159
51,000 Yamanouchi Pharmaceutical 1,207
--------
2,366
--------
PRINTING (0.9%):
73,000 Toppan Printing Co., Ltd. 1,073
--------
RETAIL (4.3%):
46,000 Aoyama Trading 1,445
19,000 Ito-Yokada Co. Ltd. 1,119
61,000 Marui 1,345
68,000 Nichii Co. 1,091
1,100 Seven-Eleven Japan 78
--------
5,078
--------
STEEL (1.0%):
315,000 Nippon Steel 1,137
--------
TELECOMMUNICATIONS (0.7%):
66,000 Nippon Comsys Corp. 851
--------
TRANSPORTATION (0.7%):
77,000 Nippon Express Co. 801
--------
WHOLESALE & INTERNATIONAL TRADE (1.0%):
43,000 Canon Sales 1,203
- ----------------------------------------------------------
TOTAL JAPAN 46,121
- ----------------------------------------------------------
MALAYSIA (0.1%):
ENTERTAINMENT (0.1%):
16,000 Genting Berhad 144
- ----------------------------------------------------------
TOTAL MALAYSIA 144
- ----------------------------------------------------------
NEW ZEALAND (0.6%):
BUILDING MATERIALS (0.2%):
84,500 Fletcher Building 200
--------
FOREST PRODUCTS & PAPER (0.3%):
169,000 Fletcher Challenge Paper 348
--------
INVESTMENT HOLDING COMPANIES (0.0%):
42,000 Brierley Investments 40
--------
OIL & GAS EXPLORATION (0.1%):
84,500 Fletcher Energy 181
- ----------------------------------------------------------
TOTAL NEW ZEALAND 769
- ----------------------------------------------------------
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
NORWAY (0.3%):
CHEMICALS (0.3%):
7,550 Norsk Hydro $ 344
- ----------------------------------------------------------
TOTAL NORWAY 344
- ----------------------------------------------------------
SINGAPORE (2.6%):
AIRLINES (0.8%):
100,000 Singapore Airlines 1,010
--------
BANKS (0.4%):
43,320 United Overseas Bank 422
--------
PUBLISHING (0.6%):
250,000 Times Publishing 668
--------
REAL ESTATE (0.8%):
450,000 United Overseas 938
- ----------------------------------------------------------
TOTAL SINGAPORE 3,038
- ----------------------------------------------------------
SPAIN (1.9%):
BANKS (0.4%):
11,000 Banco Bilbao 418
--------
OIL & GAS PRODUCTION (0.3%):
11,000 Repsol SA 403
--------
UTILITIES -- ELECTRIC (0.6%):
70,000 Iberdrola I 684
--------
UTILITIES -- TELECOMMUNICATIONS (0.6%):
42,000 Telefonica De Espania 747
- ----------------------------------------------------------
TOTAL SPAIN 2,252
- ----------------------------------------------------------
SWEDEN (2.0%):
AUTOMOBILES (0.4%):
23,200 Volvo AB 531
--------
CONSUMER GOODS (0.6%):
23,200 Electrolux, B Shares 770
--------
PHARMACEUTICALS (1.0%):
21,000 Astra AB, A Free 931
2,900 Astra AB, B Shares 128
--------
1,059
- ----------------------------------------------------------
TOTAL SWEDEN 2,360
- ----------------------------------------------------------
SWITZERLAND (5.5%):
BANKS (0.7%):
9,330 CS Holding 845
--------
FOOD PROCESSING (1.0%):
1,050 Nestle Registered 1,165
--------
INSURANCE (0.4%):
850 Winterthur Schweiz 532
--------
PHARMACEUTICALS (3.4%):
2,645 Ciba Geigy AG 3,062
119 Roche Holding AG 934
--------
3,996
- ----------------------------------------------------------
TOTAL SWITZERLAND 6,538
- ----------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
81
<PAGE> 83
Schedule of Investments -- Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Amounts in Thousands, except shares)
INTERNATIONAL GROWTH FUND (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
<S> <C> <C> <C>
UNITED STATES (2.5%):
CONSUMER PRODUCTS (1.2%):
9,500 Unilever NV $ 1,297
--------
CHEMICALS (0.1%):
3,700 Norsk Hydro-ADR 170
--------
CLOSED-END INVESTMENT COMPANIES (0.2%):
8,700 Brazilian Investment Co. 296
--------
OIL (0.6%):
35,000 YPF S.A. Sponsored-ADR 766
--------
TELECOMMUNICATIONS EQUIPMENT (0.4%):
5,000 Cia Telecomunicacion-ADR 456
- ----------------------------------------------------------
TOTAL UNITED STATES 2,985
- ----------------------------------------------------------
TOTAL COMMON STOCKS 112,770
- ----------------------------------------------------------
- ----------------------------------------------------------
CONVERTIBLE BONDS (2.5%)
BANKS (0.9%):
$ 943,000 Mitsubishi Bank
International
Finance -- Bermuda, 3.00%,
11/30/02 1,098
ELECTRONICS (0.8%):
935,000 United Electronics, 1.25%,
6/8/04 904
TELECOMMUNICATIONS (0.8%):
935,000 Telekom Malaysia, 4.00%,
10/3/04 996
- ----------------------------------------------------------
TOTAL CONVERTIBLE BONDS 2,998
- ----------------------------------------------------------
TOTAL (COST $108,239)(A) $118,510
- ----------------------------------------------------------
- ----------------------------------------------------------
</TABLE>
- ---------------
Percentages indicated are based on net assets of $118,906.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows (amounts in thousands):
<TABLE>
<S> <C>
Unrealized appreciation $10,481
Unrealized depreciation (210)
-------
Net unrealized
appreciation $10,271
========
</TABLE>
(b) Represents non-income producing securities.
ADR - American Depository Receipts
SEE NOTES TO FINANCIAL STATEMENTS.
82
<PAGE> 84
Statements of Assets and Liabilities
April 30, 1996
(Amounts in Thousands, except per share amounts)
THE VICTORY PORTFOLIOS (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S.
GOVERNMENT PRIME FINANCIAL
OBLIGATIONS OBLIGATIONS RESERVES
FUND (A) FUND FUND
----------- ----------- -----------
<S> <C> <C> <C>
ASSETS:
Investments, at value $ 261,667 $ 423,603 $ 786,174
Repurchase agreements 921,688 38,326 73,500
- -----------------------------------------------------------------------------------------------------------
1,183,355 461,929 859,674
Interest receivable 6,018 2,495 4,500
Receivable from brokers for investments sold -- 320 --
Prepaid expenses and other assets 91 96 77
- -----------------------------------------------------------------------------------------------------------
Total Assets 1,189,464 464,840 864,251
- -----------------------------------------------------------------------------------------------------------
LIABILITIES:
Dividends payable 4,552 1,735 3,219
Payable to brokers for investments purchased -- 15,815 26,020
Accrued expenses and other payables:
Investment advisory fees 335 132 294
Administration fees 144 57 102
Accounting and transfer agent fees 46 26 20
Shareholder service fees 28 85 --
Other 45 19 34
- -----------------------------------------------------------------------------------------------------------
Total Liabilities 5,150 17,869 29,689
- -----------------------------------------------------------------------------------------------------------
NET ASSETS:
Capital 1,184,404 446,959 834,368
Undistributed net investment income -- -- 217
Accumulated undistributed net realized gains (losses) from
investment transactions (90) 12 (23)
- -----------------------------------------------------------------------------------------------------------
Net Assets $1,184,314 $ 446,971 $ 834,562
===========================================================================================================
Outstanding units of beneficial interest (shares) 1,184,427 446,959 762,846
===========================================================================================================
Net asset value -- offering and redemption price per share $ 1.00 $ 1.00 $ 1.00
===========================================================================================================
Investments, at cost $1,183,355 $ 461,929 $ 859,674
===========================================================================================================
</TABLE>
(a) Select Shares. Investor Shares have not commenced operations as of April 30,
1996.
SEE NOTES TO FINANCIAL STATEMENTS.
83
<PAGE> 85
Statements of Assets and Liabilities
April 30, 1996
(Amounts in Thousands, except per share amounts)
THE VICTORY PORTFOLIOS (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
OHIO
INSTITUTIONAL TAX-FREE MUNICIPAL
MONEY MONEY MONEY
MARKET FUND MARKET FUND MARKET FUND
----------- ----------- -----------
<S> <C> <C> <C>
ASSETS:
Investments, at value $ 643,400 $ 298,228 $ 574,057
Repurchase agreements 29,004 -- --
- -----------------------------------------------------------------------------------------------------------
672,404 298,228 574,057
Interest receivable 3,321 2,877 5,004
Prepaid expenses and other assets 26 19 60
- -----------------------------------------------------------------------------------------------------------
Total Assets 675,751 301,124 579,121
- -----------------------------------------------------------------------------------------------------------
LIABILITIES:
Dividends payable 2,922 788 1,534
Payable to brokers for investment purchased 25,000 -- --
Accrued expenses and other payables:
Investment advisory fees 69 90 85
Administration fees 34 40 75
Accounting and transfer agent fees 17 15 13
Shareholder service fees -- 47 52
Shareholder service fees -- Select Shares 13 -- --
Other 41 15 30
- -----------------------------------------------------------------------------------------------------------
Total Liabilities 28,096 995 1,789
- -----------------------------------------------------------------------------------------------------------
NET ASSETS:
Capital 647,585 300,125 577,143
Undistributed net investment income 76 -- 187
Accumulated undistributed net realized gains (losses) from
investment transactions (6) 4 2
- -----------------------------------------------------------------------------------------------------------
Net Assets $ 647,655 $ 300,129 $ 577,332
===========================================================================================================
Net Assets
Investor Shares $ 579,232
Select Shares 68,423
- -----------------------------------------------------------------------------------------------------------
Total $ 647,655
===========================================================================================================
Outstanding units of beneficial interest (shares)
Investor Shares 579,225
Select Shares 68,427
- -----------------------------------------------------------------------------------------------------------
Total 647,652 300,126 577,143
===========================================================================================================
Net asset value
Offering and redemption price per share $ 1.00 $ 1.00
===========================================================================================================
Offering and redemption price per share -- Investor Shares $ 1.00
===========================================================================================================
Offering and redemption price per share -- Select Shares 1.00
===========================================================================================================
Investments, at cost $ 672,404 $ 298,228 $ 574,057
===========================================================================================================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
84
<PAGE> 86
Statements of Assets and Liabilities
April 30, 1996
(Amounts in Thousands, except per share amounts)
THE VICTORY PORTFOLIOS (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIMITED INVESTMENT GOVERNMENT
TERM INCOME INTERMEDIATE QUALITY GOVERNMENT MORTGAGE
FUND INCOME FUND BOND FUND BOND FUND FUND
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value $ 175,815 $ 188,230 $ 129,696 $ 25,913 $ 129,078
Cash -- -- 921 -- --
Interest receivable 3,027 2,744 1,825 482 901
Receivable for capital shares issued 63 28 167 -- --
Receivable from brokers for investments
sold -- 2,159 959 -- 5,059
Prepaid expenses and other assets 15 6 6 11 --
- --------------------------------------------------------------------------------------------------------------
Total Assets 178,920 193,167 133,574 26,406 135,038
==============================================================================================================
LIABILITIES:
Dividends payable -- -- -- 14 --
Payable to brokers for investments
purchased 8,935 1,896 -- -- 4,467
Payable for capital shares redeemed -- -- 20 2 --
Accrued expenses and other payables:
Investment advisory fees 66 90 67 6 54
Administration fees 21 23 16 3 16
Accounting and transfer agent fees 20 12 16 17 6
Shareholder service fees 14 16 10 -- 11
Shareholder service fees -- Class A -- -- -- 2 --
Shareholder service fees -- Class B -- -- -- 2 --
Other 49 87 29 6 48
- --------------------------------------------------------------------------------------------------------------
Total Liabilities 9,105 2,124 158 52 4,602
- --------------------------------------------------------------------------------------------------------------
NET ASSETS:
Capital 171,661 197,454 144,546 33,807 135,476
Undistributed net investment income 169 170 124 92 358
Net unrealized depreciation from
investments (1,028) (2,439) (3,386) (850) (2,788)
Accumulated undistributed net realized
(losses) from investment transactions (987) (4,142) (7,868) (6,695) (2,610)
- --------------------------------------------------------------------------------------------------------------
Net Assets $ 169,815 $ 191,043 $ 133,416 $ 26,354 $ 130,436
==============================================================================================================
Net Assets
Class A $ 25,163
Class B 1,191
- --------------------------------------------------------------------------------------------------------------
Total $ 26,354
==============================================================================================================
Outstanding units of beneficial interest
(shares)
Class A 2,647
Class B 125
- --------------------------------------------------------------------------------------------------------------
Total 16,944 20,174 14,062 2,772 12,248
==============================================================================================================
Net asset value
Redemption price per share $ 10.02 $ 9.47 $ 9.49 $ 10.65
Redemption price per share -- Class A $ 9.87
Offering and redemption price per
share -- Class B $ 9.85
- --------------------------------------------------------------------------------------------------------------
Maximum sales charge 2.00% 4.75% 4.75% 4.75% 4.75%
- --------------------------------------------------------------------------------------------------------------
Maximum offering price (100%/(100%-
maximum sales charge) of net asset
value adjusted to nearest cent) per
share $ 10.22 $ 9.94 $ 9.96 $ 11.18
- --------------------------------------------------------------------------------------------------------------
Maximum offering price (100%/(100%-
maximum sales charge) of net asset
value adjusted to nearest cent) per
share -- Class A $ 10.36
- --------------------------------------------------------------------------------------------------------------
Investments, at cost $ 176,844 $ 190,669 $ 133,082 $ 26,763 $ 131,866
- --------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
85
<PAGE> 87
Statements of Assets and Liabilities
April 30, 1996
(Amounts in Thousands, except per share amounts)
THE VICTORY PORTFOLIOS (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL NEW YORK OHIO
FUND FOR MUNICIPAL TAX-FREE MUNICIPAL
INCOME BOND FUND FUND BOND FUND
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value $21,839 $51,413 $15,779 $66,474
Cash -- -- -- --
Interest receivable 357 668 328 1,290
Receivable for capital shares issued 15 10 -- --
Receivable from brokers for investments sold 2 481 -- 2,150
Prepaid expenses and other assets 10 9 8 --
- -------------------------------------------------------------------------------------------------------------
Total Assets 22,223 52,581 16,115 69,914
- -------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable to brokers for investments purchased -- 4,498 -- 2,841
Payable for capital shares redeemed 13 39 3 --
Accrued expenses and other payables:
Investment advisory fees 4 -- 2 24
Administration fees 1 2 1 8
Accounting and transfer agent fees 6 4 8 8
Shareholder service fees 2 -- -- 6
Shareholder service fees -- Class A -- 8 1 --
Shareholder service fees -- Class B -- 1 1 --
Other 2 30 2 45
- -------------------------------------------------------------------------------------------------------------
Total Liabilities 28 4,582 18 2,932
- -------------------------------------------------------------------------------------------------------------
NET ASSETS:
Capital 23,321 48,670 15,018 65,885
Undistributed (distributions in excess of) net
investment income (16) 40 69 47
Net unrealized appreciation (depreciation) from
investments 619 (723) 957 1,154
Accumulated undistributed net realized gains (losses)
from investment transactions (1,729) 12 53 (104)
- -------------------------------------------------------------------------------------------------------------
Net Assets $22,195 $47,999 $16,097 $66,982
=============================================================================================================
Net Assets
Class A $46,799 $13,808
Class B 1,200 2,289
- -------------------------------------------------------------------------------------------------------------
Total $47,999 $16,097
=============================================================================================================
Outstanding units of beneficial interest (shares)
Class A 4,667 1,095
Class B 120 181
- -------------------------------------------------------------------------------------------------------------
Total 2,289 4,787 1,276 5,302
=============================================================================================================
Net asset value
Redemption price per share $ 9.70 $ 12.63
Redemption price per share -- Class A $ 10.03 $ 12.61
Offering and redemption price per share -- Class B $ 10.07 $ 12.62
=============================================================================================================
Maximum sales charge 2.00% 4.75% 4.75% 4.75%
=============================================================================================================
Maximum offering price (100%/(100%-maximum sales
charge) of net asset value adjusted to nearest cent)
per share $ 9.90 $ 13.26
=============================================================================================================
Maximum offering price (100%/(100%-maximum sales
charge) of net asset value adjusted to nearest cent)
per share -- Class A $ 10.53 $ 13.24
=============================================================================================================
Investments, at cost $21,220 $52,136 $14,822 $65,320
=============================================================================================================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
86
<PAGE> 88
Statements of Assets and Liabilities
April 30, 1996
(Amounts in Thousands, except per share amounts)
THE VICTORY PORTFOLIOS (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCED STOCK INDEX DIVERSIFIED
FUND FUND STOCK FUND VALUE FUND GROWTH FUND
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value $ 234,156 $ 224,830 $ 497,590 $ 346,509 $ 126,806
Interest and dividends receivable 1,283 294 368 422 126
Receivable for capital shares issued 56 -- 187 -- --
Receivable from brokers for investments
sold 901 -- 5,342 863 --
Prepaid expenses and other assets 17 6 37 22 12
- --------------------------------------------------------------------------------------------------------------
Total Assets 236,413 225,130 503,524 347,816 126,944
- --------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for capital shares redeemed 64 -- 56 -- --
Payable to brokers for investments
purchased -- -- 4,677 464 --
Accrued expenses and other payables:
Investment advisory fees 164 77 257 282 102
Administration fees 29 -- 60 42 15
Accounting and transfer agent fees 8 9 9 18 17
Shareholder service fees -- -- -- 25 9
Shareholder service fees -- Class A 21 -- 43 -- --
Other 34 28 21 26 16
- --------------------------------------------------------------------------------------------------------------
Total Liabilities 320 114 5,123 857 159
- --------------------------------------------------------------------------------------------------------------
NET ASSETS:
Capital 205,226 182,178 386,547 264,874 96,356
Undistributed (distributions in excess
of) net investment income 84 304 123 104 (17)
Net unrealized appreciation from
investments 27,253 41,626 70,053 72,389 27,885
Net unrealized depreciation from
translation of assets and liabilities
in foreign currencies (140) -- -- -- --
Accumulated undistributed net realized
gains from investment transactions 3,884 908 41,678 9,592 2,561
Accumulated undistributed net realized
gains (losses) from foreign currency
transactions (214) -- -- -- --
- --------------------------------------------------------------------------------------------------------------
Net Assets $ 236,093 $ 225,016 $ 498,401 $ 346,959 $ 126,785
==============================================================================================================
Net Assets
Class A $ 235,476 $ 497,380
Class B 617 1,021
- --------------------------------------------------------------------------------------------------------------
Total $ 236,093 $ 498,401
- --------------------------------------------------------------------------------------------------------------
Outstanding units of beneficial interest
(shares)
Class A 20,185 33,875
Class B 53 70
- --------------------------------------------------------------------------------------------------------------
Total 20,238 16,311 33,945 26,240 9,693
==============================================================================================================
Net asset value
Redemption price per share $ 13.80 $ 13.22 $ 13.08
Redemption price per share -- Class A $ 11.67 $ 14.68
Offering and redemption price per
share -- Class B $ 11.64 $ 14.59
==============================================================================================================
Maximum sales charge 4.75% 4.75% 4.75% 4.75% 4.75%
==============================================================================================================
Maximum offering price (100%/(100%-
maximum sales charge) of net asset
value adjusted to nearest cent) per
share $ 14.49 $ 13.88 $ 13.73
==============================================================================================================
Maximum offering price (100%/(100%-
maximum sales Charge) of net asset
value adjusted to nearest cent) per
share -- Class A $ 12.25 $ 15.41
==============================================================================================================
Investments, at cost $ 207,045 $ 183,374 $ 427,536 $ 274,120 $ 98,921
==============================================================================================================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
87
<PAGE> 89
Statements of Assets and Liabilities
April 30, 1996
(Amounts in Thousands, except per share amounts)
THE VICTORY PORTFOLIOS (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
OHIO
SPECIAL SPECIAL REGIONAL INTERNATIONAL
VALUE GROWTH STOCK GROWTH
FUND FUND FUND FUND
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value $ 238,210 $80,999 $44,353 $ 118,510
Foreign currency (cost $14) -- -- -- 14
Interest and dividends receivable 314 41 28 525
Receivable for capital shares issued 91 2 5 12
Receivable from brokers for investments sold 2,322 379 -- 29
Prepaid expenses and other assets 18 11 -- 16
- -------------------------------------------------------------------------------------------------------------
Total Assets 240,955 81,432 44,386 119,106
- -------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for capital shares redeemed 6 -- -- --
Payable to brokers for investments purchased -- 394 -- --
Accrued expenses and other payables:
Investment advisory fees 191 63 27 104
Administration fees 29 9 5 14
Accounting and transfer agent fees 6 5 7 31
Shareholder service fees -- 6 -- --
Shareholder service fees -- Class A 20 -- 4 10
Other 16 7 9 41
- -------------------------------------------------------------------------------------------------------------
Total Liabilities 268 484 52 200
- -------------------------------------------------------------------------------------------------------------
NET ASSETS:
Capital 192,758 65,312 26,008 105,694
Undistributed (distributions in excess of) net
investment income 75 (177) (25) (152)
Net unrealized appreciation from investments 36,267 16,139 17,881 11,693
Net unrealized depreciation from translation of assets
and liabilities in foreign currencies -- -- -- (1,437)
Accumulated undistributed net realized gains (losses)
from investment transactions 11,587 (326) 470 (1,212)
Accumulated undistributed net realized gains from
foreign currency transactions -- -- -- 4,320
- -------------------------------------------------------------------------------------------------------------
Net Assets $ 240,687 $80,948 $44,334 $ 118,906
=============================================================================================================
Net Assets
Class A $ 240,600 $44,165 $ 118,842
Class B 87 169 64
- -------------------------------------------------------------------------------------------------------------
Total $ 240,687 $44,334 $ 118,906
=============================================================================================================
Outstanding units of beneficial interest (shares)
Class A 17,978 2,517 8,909
Class B 7 10 5
- -------------------------------------------------------------------------------------------------------------
Total 17,985 5,633 2,527 8,914
=============================================================================================================
Net asset value
Redemption price per share $ 14.37
Redemption price per share -- Class A $ 13.38 $ 17.55 $ 13.34
Offering and redemption price per share -- Class B $ 13.38 $ 16.90 $ 12.80
=============================================================================================================
Maximum sales charge 4.75% 4.75% 4.75% 4.75%
=============================================================================================================
Maximum offering price (100%/(100%-maximum sales
charge) of net asset value adjusted to nearest cent)
per share $ 15.09
=============================================================================================================
Maximum offering price (100%/(100%-maximum sales
charge) of net asset value adjusted to nearest cent)
per share -- Class A $ 14.05 $ 18.42 $ 14.00
=============================================================================================================
Investments, at cost $ 201,944 $64,861 $26,471 $ 108,239
=============================================================================================================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
88
<PAGE> 90
Statements of Operations
For the Six Months Ended April 30, 1996
(Amounts in Thousands)
THE VICTORY PORTFOLIOS (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S.
GOVERNMENT PRIME FINANCIAL
OBLIGATIONS OBLIGATIONS RESERVES
FUND (A) FUND FUND
---------- ---------- ----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income $ 31,108 $ 13,130 $ 23,258
- ----------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 1,955 810 2,058
Administration fees 838 347 618
Shareholder service fees 111 531 --
Accounting fees 44 44 40
Custodian fees 109 48 80
Legal and audit fees 78 33 47
Trustees' fees and expenses 24 10 18
Transfer agent fees 16 27 15
Registration and filing fees 90 22 63
Printing fees 83 61 18
Other 8 2 76
Expenses voluntarily reduced -- -- (320)
- ----------------------------------------------------------------------------------------------------------
Total Expenses 3,356 1,935 2,713
- ----------------------------------------------------------------------------------------------------------
Net Investment Income 27,752 11,195 20,545
- ----------------------------------------------------------------------------------------------------------
REALIZED GAINS FROM INVESTMENTS:
Net realized gains from investment transactions 64 12 5
- ----------------------------------------------------------------------------------------------------------
Change in net assets resulting from operations $ 27,816 $ 11,207 $ 20,550
==========================================================================================================
</TABLE>
(a) Select Shares. Investor Shares have not commenced operations as of April 30,
1996.
SEE NOTES TO FINANCIAL STATEMENTS.
89
<PAGE> 91
Statements of Operations
For the Six Months Ended April 30, 1996
(Amounts in Thousands)
THE VICTORY PORTFOLIOS (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
OHIO
INSTITUTIONAL TAX-FREE MUNICIPAL
MONEY MONEY MONEY
MARKET MARKET MARKET
FUND FUND FUND
----------- ----------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income $18,581 $ 6,028 $10,411
Dividend income -- 197 99
- -----------------------------------------------------------------------------------------------------------
Total Income 18,581 6,225 10,510
- -----------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 831 578 1,399
Administration fees 499 248 420
Shareholder service fees 284 581
Shareholder service fees -- Select Shares 60 -- --
Accounting fees 45 37 23
Custodian fees 65 35 56
Legal and audit fees 51 23 42
Trustees' fees and expenses 15 7 12
Transfer agent fees 12 10 12
Registration and filing fees 35 29 66
Printing fees 25 24 53
Other 4 3 5
Expenses voluntarily reduced (701) (19) (850)
- -----------------------------------------------------------------------------------------------------------
Total Expenses 941 1,259 1,819
- -----------------------------------------------------------------------------------------------------------
Net Investment Income 17,640 4,966 8,691
- -----------------------------------------------------------------------------------------------------------
REALIZED GAINS FROM INVESTMENTS:
Net realized gains from investment transactions -- 1 --
- -----------------------------------------------------------------------------------------------------------
Change in net assets resulting from operations $17,640 $ 4,967 $ 8,691
- -----------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
90
<PAGE> 92
Statements of Operations
For the Six Months Ended April 30, 1996
(Amounts in Thousands)
THE VICTORY PORTFOLIOS (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIMITED INVESTMENT
TERM INTERMEDIATE QUALITY GOVERNMENT GOVERNMENT
INCOME INCOME BOND BOND MORTGAGE
FUND FUND FUND FUND FUND
---------- ---------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $ 5,492 $ 5,685 $ 4,390 $ 947 $ 4,777
Dividend income 64 70 73 10 41
- ----------------------------------------------------------------------------------------------------------
Total Income 5,556 5,755 4,463 957 4,818
- ----------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 428 656 481 77 333
Administration fees 129 131 97 21 100
Shareholder service fees 87 88 64 -- 69
Shareholder service
fees -- Class A -- -- -- 14 --
Shareholder service fees and
12b-1 fees -- Class B 5
Accounting fees 28 29 28 20 27
Custodian fees 18 18 16 5 17
Legal and audit fees 12 13 8 3 9
Trustees' fees and expenses 4 4 3 1 3
Transfer agent fees 9 9 8 10 15
Registration and filing fees 25 19 17 12 13
Printing fees 14 14 12 1 13
Other 1 2 -- -- 1
Expenses voluntarily reduced (31) (158) (91) (34) (3)
- ----------------------------------------------------------------------------------------------------------
Total Expenses 724 825 643 135 597
- ----------------------------------------------------------------------------------------------------------
Net Investment Income 4,832 4,930 3,820 822 4,221
- ----------------------------------------------------------------------------------------------------------
REALIZED/UNREALIZED GAINS
(LOSSES) FROM INVESTMENTS:
Net realized gains (losses) from
investment transactions 698 (193) 744 614 436
Change in unrealized
appreciation (depreciation)
from investments (2,799) (3,990) (4,516) (1,620) (2,965)
- ----------------------------------------------------------------------------------------------------------
Net realized/unrealized losses
from investments (2,101) (4,183) (3,772) (1,006) (2,529)
- ----------------------------------------------------------------------------------------------------------
Change in net assets resulting
from operations $ 2,731 $ 747 $ 48 $ (184) $ 1,692
==========================================================================================================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
91
<PAGE> 93
Statements of Operations
For the Six Months Ended April 30, 1996
(Amounts in Thousands)
THE VICTORY PORTFOLIOS (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL NEW YORK OHIO
FUND FOR MUNICIPAL TAX-FREE MUNICIPAL
INCOME BOND FUND FUND BOND FUND
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $ 938 $ 634 $ 508 $ 1,749
Dividend income -- 22 6 19
- -------------------------------------------------------------------------------------------------------------
Total Income 938 656 514 1,768
- -------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 57 80 46 189
Administration fees 17 22 13 47
Shareholder service fees 27 35
Shareholder service fees -- Class A 23 8
Shareholder service fees and 12b-1 fees -- Class B 3 9
Accounting fees 27 30 26 26
Custodian fees 7 5 3 8
Legal and audit fees 3 2 3 5
Trustees' fees and expenses -- 1 -- 1
Transfer agent fees 19 8 10 10
Registration and filing fees 12 13 4 2
Printing fees 14 7 9 11
Other -- 1 -- --
Expenses voluntarily reduced (44) (102) (48) (49)
- -------------------------------------------------------------------------------------------------------------
Expenses before reimbursement by the distributor 139 93 83 285
Expenses reimbursed by the distributor (25) (90)
- -------------------------------------------------------------------------------------------------------------
Total Expenses 114 3 83 285
- -------------------------------------------------------------------------------------------------------------
Net Investment Income 824 653 431 1,483
- -------------------------------------------------------------------------------------------------------------
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains from investment transactions 36 12 53 434
Change in unrealized depreciation from investments (426) (1,218) (355) (1,259)
- -------------------------------------------------------------------------------------------------------------
Net realized/unrealized losses from investments (390) (1,206) (302) (825)
- -------------------------------------------------------------------------------------------------------------
Change in net assets resulting from operations $ 434 $ (553) $ 129 $ 658
=============================================================================================================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
92
<PAGE> 94
Statements of Operations
For the Six Months Ended April 30, 1996
(Amounts in Thousands)
THE VICTORY PORTFOLIOS (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCED STOCK INDEX DIVERSIFIED
FUND FUND STOCK FUND VALUE FUND GROWTH FUND
----------- ----------- ----------- ----------- -----------
INVESTMENT INCOME:
<S> <C> <C> <C> <C> <C>
Interest income $ 3,169 $ 342 $ 89 $ 89 $ 14
Dividend income 1,722 2,045 5,678 4,734 1,161
Foreign tax withholding (2) -- -- -- --
- --------------------------------------------------------------------------------------------------------------
Total Income 4,889 2,387 5,767 4,823 1,175
- --------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 1,099 572 1,475 1,628 579
Administration fees 165 143 284 244 73
Shareholder service fees 157 57
Shareholder service fees--Class A 117 244
Shareholder service fees and 12b-1
fees--Class B 1 1
Accounting fees 44 40 103 38 36
Custodian fees 26 37 47 32 13
Legal and audit fees 15 15 32 23 8
Amortization of organization costs 1 1 -- 2 --
Trustees' fees and expenses 5 4 10 7 2
Transfer agent fees 39 10 98 10 17
Registration and filing fees 25 20 33 18 10
Printing fees 18 16 33 20 13
Other 2 1 4 3 1
Expenses voluntarily reduced (195) (313) (54) (62) (70)
- --------------------------------------------------------------------------------------------------------------
Total Expenses 1,362 546 2,310 2,120 739
- --------------------------------------------------------------------------------------------------------------
Net Investment Income 3,527 1,841 3,457 2,703 436
- --------------------------------------------------------------------------------------------------------------
REALIZED/UNREALIZED GAINS (LOSSES) FROM
INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gains from investment
transactions 4,363 1,864 41,945 9,615 2,551
Net realized losses from foreign currency
transactions (3) -- -- -- --
Net change in unrealized appreciation
from investments 9,263 19,210 28,355 33,624 10,615
- --------------------------------------------------------------------------------------------------------------
Net realized/unrealized gains from
investments and foreign currencies 13,623 21,074 70,300 43,239 13,166
- --------------------------------------------------------------------------------------------------------------
Change in net assets resulting from
operations $17,150 $22,915 $73,757 $45,942 $13,602
==============================================================================================================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
93
<PAGE> 95
Statements of Operations
For the Six Months Ended April 30, 1996
(Amounts in Thousands)
THE VICTORY PORTFOLIOS (Unaudited)
- --------------------------------------------------------------------------------
[CAPTION]
<TABLE>
OHIO
SPECIAL SPECIAL REGIONAL INTERNATIONAL
VALUE FUND GROWTH FUND STOCK FUND GROWTH FUND
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $ 40 $ 44 $ 5 $ 22
Dividend income 2,461 239 438 858
Foreign tax withholding -- -- -- (98)
- -------------------------------------------------------------------------------------------------------------
Total Income 2,501 283 443 782
- -------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 1,079 320 154 603
Administration fees 162 49 31 82
Shareholder service fees 31
Shareholder service fees--Class A 111 24 56
Accounting fees 36 30 23 48
Custodian fees 25 17 5 93
Legal and audit fees 15 6 4 8
Amortization of organization costs 1 1 -- --
Trustees' fees and expenses 5 2 1 2
Transfer agent fees 23 11 23 30
Registration and filing fees 20 15 13 17
Printing fees 17 10 10 14
Other 3 1 -- 1
Expenses voluntarily reduced (68) (33) (4) (28)
- -------------------------------------------------------------------------------------------------------------
Total Expenses 1,429 460 284 926
- -------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 1,072 (177) 159 (144)
- -------------------------------------------------------------------------------------------------------------
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS
AND FOREIGN CURRENCIES:
Net realized gains (losses) from investment
transactions 11,618 (41) 469 6,125
Net realized gains from foreign currency transactions -- -- -- 139
Net change in unrealized appreciation from investments 15,070 13,487 5,046 6,178
Change in unrealized depreciation from translation of
assets and liabilities in foreign currencies -- -- -- (3,685)
- -------------------------------------------------------------------------------------------------------------
Net realized/unrealized gains from investments and
foreign currencies 26,688 13,446 5,515 8,757
- -------------------------------------------------------------------------------------------------------------
Change in net assets resulting from operations $27,760 $13,269 $ 5,674 $ 8,613
=============================================================================================================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
94
<PAGE> 96
Statements of Changes in Net Assets
THE VICTORY PORTFOLIOS (Amounts in Thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. GOVERNMENT
OBLIGATIONS FUND PRIME OBLIGATIONS FUND FINANCIAL RESERVES FUND
-------------------------- -------------------------- --------------------------
SIX MONTHS SIX MONTHS SIX MONTHS YEAR ENDED
ENDED YEAR ENDED ENDED YEAR ENDED ENDED OCTOBER 31,
APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30, 1995(a)
1996 (b) 1995(a) 1996 1995 1996 -----------
----------- ----------- ----------- ----------- -----------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income $ 27,752 $ 33,876 $ 11,195 $ 27,763 $ 20,545 $ 38,318
Net realized gains (losses) from
investment transactions 64 94 12 -- 5 --
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets resulting
from operations 27,816 33,970 11,207 27,763 20,550 38,318
- ---------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (27,752) (33,876) (11,195) (27,763) (20,415) (38,264)
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets from
distributions to shareholders (27,752) (33,876) (11,195) (27,763) (20,415) (38,264)
- ---------------------------------------------------------------------------------------------------------------------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 1,770,785 1,782,085 653,922 1,719,347 1,567,671 4,803,998
Proceeds from shares issued in
connection with acquisition 242,973
Dividends reinvested 4,356 3,962 8,583 15,471 1,445 1,265
Cost of shares redeemed (1,555,820) (1,476,233) (671,812) (2,060,855) (1,497,559) (4,475,713)
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets from capital
transactions 219,321 552,787 (9,307) (326,037) 71,557 329,550
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets 219,385 552,881 (9,295) (326,037) 71,692 329,604
NET ASSETS:
Beginning of period 964,929 412,048 456,266 782,303 762,870 433,266
- ---------------------------------------------------------------------------------------------------------------------------
End of period $ 1,184,314 $ 964,929 $ 446,971 $ 456,266 $ 834,562 $ 762,870
===========================================================================================================================
SHARE TRANSACTIONS:
Issued 1,770,785 1,782,107 653,922 1,719,347 1,567,671 4,803,998
Issued in connection with
acquisition 242,973
Reinvested 4,356 3,962 8,583 15,471 1,445 1,265
Redeemed (1,555,820) (1,476,233) (671,912) (2,060,755) (1,497,559) (4,475,713)
- ---------------------------------------------------------------------------------------------------------------------------
Change in shares 219,321 552,809 (9,407) (325,937) 71,557 329,550
===========================================================================================================================
</TABLE>
(a) Effective June 5, 1995, the Victory U.S. Treasury Money Market Portfolio
merged into the U.S. Government Obligations Fund. Changes in net assets for
periods prior to June 5, 1995 represents the U.S. Government Obligations
Fund. Also, effective June 5, 1995 the Victory Financial Reserve Portfolio
became the Financial Reserves Fund.
(b) Select Shares. Investor Shares have not commenced operations as of April 30,
1996.
SEE NOTES TO FINANCIAL STATEMENTS.
95
<PAGE> 97
Statements of Changes in Net Assets
THE VICTORY PORTFOLIOS (Amounts in Thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INSTITUTIONAL TAX-FREE
MONEY MARKET FUND MONEY MARKET FUND OHIO MUNICIPAL MONEY MARKET FUND
-------------------------------------- ---------------------- --------------------------------------
SIX
MONTHS SIX YEAR SIX TWO MONTHS
SIX MONTHS ENDED MONTHS ENDED MONTHS ENDED
ENDED OCTOBER YEAR ENDED ENDED OCTOBER ENDED OCTOBER YEAR ENDED
APRIL 30, 31, APRIL 30, APRIL 30, 31, APRIL 30, 31, AUGUST 31,
1996 1995(a) 1995(b) 1996 1995 1996 1995 1995
---------- --------- ----------- --------- --------- --------- ---------- -----------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment
income $ 17,640 $ 14,833 $ 22,107 4,966 $ 8,303 $ 8,691 $ 2,859 $ 13,393
Net realized gains
from investment
transactions -- -- 20 1 62 -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Change in net assets
resulting from
operations 17,640 14,833 22,127 4,967 8,365 8,691 2,859 13,393
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income (4,966) (8,303) (8,722) (2,859) (13,175)
Investor Shares (16,431) (14,857) (21,993)
Select Shares (1,209) (22)
From net realized
gains from
investment
transactions (26) -- -- (59) -- (17) -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Change in net assets
from distributions
to shareholders (17,666) (14,879) (21,993) (5,025) (8,303) (8,739) (2,859) (13,175)
- ---------------------------------------------------------------------------------------------------------------------------------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued 1,004,619 648,875 1,197,333 318,307 518,760 692,413 363,385 1,872,345
Dividends reinvested 1,072 144 1,508 789 900 3,199 472 945
Cost of shares
redeemed (874,025) (582,772) (1,290,390) (326,635) (410,557) (628,864) (355,896) (1,688,969)
- ---------------------------------------------------------------------------------------------------------------------------------
Change in net assets
from capital
transactions 131,666 66,247 (91,549) (7,539) 109,103 66,748 7,961 184,321
- ---------------------------------------------------------------------------------------------------------------------------------
Change in net assets 131,640 66,201 (91,415) (7,597) 109,165 66,700 7,961 184,539
NET ASSETS:
Beginning of period 516,015 449,814 541,229 307,726 198,561 510,632 502,671 318,132
- ---------------------------------------------------------------------------------------------------------------------------------
End of period $ 647,655 $ 516,015 $ 449,814 $ 300,129 $ 307,726 $ 577,332 $ 510,632 $ 502,671
=================================================================================================================================
SHARE TRANSACTIONS:
Issued 1,004,619 648,875 1,197,333 318,307 518,760 692,413 363,385 1,872,345
Reinvested 1,072 144 1,508 789 900 3,199 472 945
Redeemed (874,025) (582,772) (1,290,390) (326,635) (410,557) (628,864) (355,896) (1,688,969)
- ---------------------------------------------------------------------------------------------------------------------------------
Change in shares 131,666 66,247 (91,549) (7,539) 109,103 66,748 7,961 184,321
=================================================================================================================================
</TABLE>
(a) Effective June 5, 1995, the Victory Institutional Money Market Portfolio and
the Victory Ohio Municipal Money Market Portfolio became the Institutional
Money Market Fund and Ohio Municipal Money Market Fund, respectively.
(b) Audited by other auditors.
SEE NOTES TO FINANCIAL STATEMENTS.
96
<PAGE> 98
Statements of Changes in Net Assets
THE VICTORY PORTFOLIOS (Amounts in Thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIMITED TERM INTERMEDIATE INVESTMENT QUALITY
INCOME FUND INCOME FUND BOND FUND
------------------------- ------------------------- -------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31,
1996 1995 (a) 1996 1995 1996 1995 (a)
---------- ----------- ---------- ----------- ---------- -----------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income $ 4,832 $ 8,444 $ 4,930 $ 8,578 $ 3,820 $ 6,906
Net realized gains (losses) from
investment transactions 698 (892) (193) (1,399) 744 (4,593)
Net change in unrealized appreciation
(depreciation) from investments (2,799) 4,613 (3,990) 7,769 (4,516) 6,997
- --------------------------------------------------------------------------------------------------------------------------------
Change in net assets resulting from
operations 2,731 12,165 747 14,948 48 9,310
- --------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (4,842) (8,403) (4,932) (8,634) (3,829) (6,970)
From net realized gains from investment
transactions (122) (52)
- --------------------------------------------------------------------------------------------------------------------------------
Change in net assets from distributions to
shareholders (4,964) (8,403) (4,984) (8,634) (3,829) (6,970)
- --------------------------------------------------------------------------------------------------------------------------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 17,998 121,860 47,796 73,087 26,958 48,431
Proceeds from shares issued in
connection with acquisition 14,263 27,853
Dividends reinvested 4,944 8,381 4,982 8,632 3,674 6,932
Cost of shares redeemed (22,896) (55,414) (20,779) (37,675) (18,683) (54,993)
- --------------------------------------------------------------------------------------------------------------------------------
Change in net assets from capital
transactions 46 89,090 31,999 44,044 11,949 28,223
- --------------------------------------------------------------------------------------------------------------------------------
Change in net assets (2,187) 92,852 27,762 50,358 8,168 30,563
NET ASSETS:
Beginning of period 172,002 79,150 163,281 112,923 125,248 94,685
- --------------------------------------------------------------------------------------------------------------------------------
End of period $169,815 $ 172,002 $191,043 $ 163,281 $133,416 $ 125,248
================================================================================================================================
SHARE TRANSACTIONS:
Issued 4,948 12,215 4,948 7,738 2,763 4,675
Issued in connection with acquisition 1,398 2,849
Reinvested 515 836 515 915 377 735
Redeemed (2,146) (5,518) (2,146) (4,005) (1,905) (5,833)
- --------------------------------------------------------------------------------------------------------------------------------
Change in shares 3,317 8,931 3,317 4,648 1,235 2,426
================================================================================================================================
</TABLE>
(a) Effective June 5, 1995, the Victory Short-Term Government Income Portfolio
merged into the Limited Term Income Fund, and the Victory Corporate Bond
Portfolio merged into the Investment Quality Bond Fund. Changes in net
assets for the periods prior to June 5, 1995 represent the Limited Term
Income Fund and the Investment Quality Bond Fund, respectively.
SEE NOTES TO FINANCIAL STATEMENTS.
97
<PAGE> 99
Statements of Changes in Net Assets
THE VICTORY PORTFOLIOS (Amounts in Thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION> GOVERNMENT
GOVERNMENT BOND FUND MORTGAGE FUND FUND FOR INCOME
------------------------------------ ----------------------- -----------------------
SIX MONTHS
SIX MONTHS ENDED SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED OCTOBER YEAR ENDED ENDED OCTOBER ENDED OCTOBER
APRIL 30, 31, APRIL 30, APRIL 30, 31, APRIL 30, 31,
1996 1995(a) 1995(b) 1996 1995 1996(a) 1995
---------- ---------- ---------- ---------- ---------- ---------- ----------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income $ 822 $ 1,716 $ 6,571 4,221 $ 9,792 $ 824 $ 1,894
Net realized gains (losses) from
investment transactions 614 3,139 (7,388) 436 (2,407) 36 (328)
Net change in unrealized appreciation
(depreciation) from investments (1,620) (101) 5,974 (2,965) 11,075 (426) 1,370
- ---------------------------------------------------------------------------------------------------------------------------------
Change in net assets resulting from
operations (184) 4,754 5,157 1,692 18,460 434 2,936
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
From net investment income by class: (4,228) (9,746) (980) (1,704)
Class A (798) (1,750) (6,395)
Class B (30) (14) (1)
From net realized gains from investment
transactions -- -- -- -- (596) -- --
In excess of net realized gains from
investment transactions -- -- -- -- (638) -- --
Tax return of capital -- -- -- -- (218) -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Change in net assets from distributions
to shareholders (828) (1,764) (6,396) (4,228) (11,198) (980) (1,704)
- ---------------------------------------------------------------------------------------------------------------------------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 3,636 3,800 13,782 13,295 36,846 3,035 3,698
Dividends reinvested 810 1,292 75 3,900 11,183 685 569
Cost of shares redeemed (5,845) (64,039) (48,532) (20,326) (67,356) (3,735) (12,101)
- ---------------------------------------------------------------------------------------------------------------------------------
Change in net assets from capital
transactions (1,399) (58,947) (34,675) (3,131) (19,327) (15) (7,834)
- ---------------------------------------------------------------------------------------------------------------------------------
Change in net assets (2,411) (55,957) (35,914) (5,667) (12,065) (561) (6,602)
NET ASSETS:
Beginning of period 28,765 84,722 120,636 136,103 148,168 22,756 29,358
- ---------------------------------------------------------------------------------------------------------------------------------
End of period $ 26,354 $ 28,765 $ 84,722 $130,436 $136,103 $ 22,195 $ 22,756
=================================================================================================================================
SHARE TRANSACTIONS:
Issued 369 390 1,475 1,221 3,517 306 382
Reinvested 82 132 8 359 1,065 70 58
Redeemed (595) (6,585) (5,266) (1,865) (6,399) (378) (1,261)
- ---------------------------------------------------------------------------------------------------------------------------------
Change in shares (144) (6,063) (3,783) (285) (1,817) (2) (821)
=================================================================================================================================
</TABLE>
(a) Effective June 5, 1995, the Victory Government Bond Portfolio and the
Victory Fund for Income Portfolio became the Government Bond Fund and Fund
for Income, respectively.
(b) Audited by other auditors.
SEE NOTES TO FINANCIAL STATEMENTS.
98
<PAGE> 100
Statements of Changes in Net Assets
THE VICTORY PORTFOLIOS (Amounts in Thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION> NEW YORK OHIO MUNICIPAL
NATIONAL MUNICIPAL BOND FUND TAX-FREE FUND BOND FUND
------------------------------------ ----------------------- -----------------------
SIX MONTHS
SIX MONTHS ENDED SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED OCTOBER YEAR ENDED ENDED OCTOBER ENDED OCTOBER
APRIL 30, 31, APRIL 30, APRIL 30, 31, APRIL 30, 31,
1996 1995(a) 1995(b) 1996 1995(a) 1996 1995
---------- ---------- ---------- ---------- ---------- ---------- ----------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income $ 653 $ 242 $ 108 $ 431 $ 940 $ 1,483 $ 2,760
Net realized gains (losses) from
investment transactions 12 35 10 53 10 434 (128)
Net change in unrealized appreciation
(depreciation) from investments (1,218) 326 179 (355) 740 (1,259) 5,317
- ---------------------------------------------------------------------------------------------------------------------------------
Change in net assets resulting from
operations (553) 603 297 129 1,690 658 7,949
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A (610) (221) (108) (382) (830) (1,479) (2,801)
Class B (16) (6) (48) (42)
In excess of net investment income (3)
From net realized gains from
investment transactions (45) (10) (60) (11)
In excess of net realized gains from
investment transactions (169)
- ---------------------------------------------------------------------------------------------------------------------------------
Change in net assets from distributions
to shareholders (671) (227) (111) (440) (1,101) (1,490) (2,801)
- ---------------------------------------------------------------------------------------------------------------------------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 45,563 6,782 4,792 1,879 5,457 12,588 15,932
Dividends reinvested 633 216 103 323 509 1,452 2,784
Cost of shares redeemed (9,393) (219) (310) (3,121) (7,068) (6,257) (21,537)
- ---------------------------------------------------------------------------------------------------------------------------------
Change in net assets from capital
transactions 36,803 6,779 4,585 (919) (1,102) 7,783 (2,821)
- ---------------------------------------------------------------------------------------------------------------------------------
Change in net assets 35,579 7,155 4,771 (1,230) (513) 6,951 2,327
NET ASSETS:
Beginning of period 12,420 5,265 494 17,327 17,840 60,031 57,704
- ---------------------------------------------------------------------------------------------------------------------------------
End of period $ 47,999 $ 12,420 $5,265 $ 16,097 $ 17,327 $ 66,982 $ 60,031
=================================================================================================================================
SHARE TRANSACTIONS:
Issued 4,417 685 519 140 443 1,102 1,474
Reinvested 62 21 11 25 39 127 257
Redeemed (927) (21) (33) (237) (574) (547) (2,014)
- ---------------------------------------------------------------------------------------------------------------------------------
Change in shares 3,552 685 497 (72) (92) 682 (283)
=================================================================================================================================
</TABLE>
(a) Effective June 5, 1995, the Victory National Municipal Bond Portfolio and
Victory New York Tax-Free Portfolio became the National Municipal Bond Fund
and New York Tax-Free Fund, respectively.
(b) Audited by other auditors.
SEE NOTES TO FINANCIAL STATEMENTS.
99
<PAGE> 101
Statements of Changes in Net Assets
THE VICTORY PORTFOLIOS (Amounts in Thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCED FUND STOCK INDEX FUND DIVERSIFIED STOCK FUND
----------------------- ----------------------- -----------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED OCTOBER ENDED OCTOBER ENDED OCTOBER
APRIL 30, 31, APRIL 30, 31, APRIL 30, 31,
1996 1995 1996 1995 1996 1995
---------- ---------- ---------- ---------- ---------- ----------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income $ 3,527 $ 6,680 $ 1,841 $ 2,888 $ 3,457 $ 6,928
Net realized gains from investment transactions 4,363 2,774 1,864 2,091 41,945 32,800
Net realized gains (losses) from foreign currency
transactions (3) 11 -- -- -- --
Net change in unrealized appreciation from
investments 9,263 20,046 19,210 20,860 28,355 29,446
Change in unrealized depreciation from translation
of assets and liabilities in foreign currencies -- (236) -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Change in net assets resulting from operations 17,150 29,275 22,915 25,839 73,757 69,174
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (6,753) (1,900) (2,709) (7,205)
From net investment income by class:
Class A (3,527) (3,406)
Class B (1) (1)
From net realized gains from investment transactions (1,361) (3,041) (33,023) (29,668)
- ---------------------------------------------------------------------------------------------------------------------------------
Change in net assets from distributions to
shareholders (4,889) (6,753) (4,941) (2,709) (36,430) (36,873)
- ---------------------------------------------------------------------------------------------------------------------------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 45,891 111,470 53,791 74,489 66,049 144,852
Dividends reinvested 4,875 6,726 4,939 2,709 36,283 36,846
Cost of shares redeemed (28,007) (66,930) (12,510) (29,192) (50,807) (67,677)
- ---------------------------------------------------------------------------------------------------------------------------------
Change in net assets from capital transactions 22,759 51,266 46,220 48,006 51,525 114,021
- ---------------------------------------------------------------------------------------------------------------------------------
Change in net assets 35,020 73,788 64,194 71,136 88,852 146,322
NET ASSETS:
Beginning of period 201,073 127,285 160,822 89,686 409,549 263,227
- ---------------------------------------------------------------------------------------------------------------------------------
End of period $236,093 $201,073 $225,016 $160,822 $498,401 $409,549
=================================================================================================================================
SHARE TRANSACTIONS:
Issued 4,001 11,125 4,023 6,638 4,801 11,560
Reinvested 426 659 379 241 2,805 3,276
Redeemed (2,444) (6,762) (960) (2,815) (3,731) (5,529)
- ---------------------------------------------------------------------------------------------------------------------------------
Change in shares 1,983 5,022 3,442 4,064 3,875 9,307
=================================================================================================================================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
100
<PAGE> 102
Statements of Changes in Net Assets
THE VICTORY PORTFOLIOS (Amounts in Thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE FUND GROWTH FUND SPECIAL VALUE FUND
------------------------ ------------------------ ------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED OCTOBER ENDED OCTOBER ENDED OCTOBER
APRIL 30, 31, APRIL 30, 31, APRIL 30, 31,
1996 1995(a) 1996 1995(a) 1996 1995
---------- ---------- ---------- ---------- ---------- ----------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income $ 2,703 $ 6,585 $ 436 $ 746 $ 1,072 $ 2,090
Net realized gains from investment
transactions 9,615 8,481 2,551 4,504 11,618 5,442
Net change in unrealized appreciation from
investments 33,624 39,805 10,615 15,906 15,070 18,049
- ---------------------------------------------------------------------------------------------------------------------------------
Change in net assets resulting from operations 45,942 54,871 13,602 21,156 27,760 25,581
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (2,831) (6,666) (466) (783) (2,126)
From net investment income by class:
Class A (1,054)
From net realized gains from investment
transactions (8,483) (3,145) (4,494) (298) (5,473) (588)
- ---------------------------------------------------------------------------------------------------------------------------------
Change in net assets from distributions to
shareholders (11,314) (9,811) (4,960) (1,081) (6,527) (2,714)
- ---------------------------------------------------------------------------------------------------------------------------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 36,023 169,271 24,156 10,526 41,226 87,892
Proceeds from shares issued in connection
with acquisition 423 65,632
Dividends reinvested 11,313 9,809 4,951 1,067 6,522 2,712
Cost of shares redeemed (30,876) (116,876) (19,217) (55,968) (22,994) (37,371)
- ---------------------------------------------------------------------------------------------------------------------------------
Change in net assets from capital transactions 16,460 62,627 9,890 21,257 24,754 53,233
- ---------------------------------------------------------------------------------------------------------------------------------
Change in net assets 51,088 107,687 18,532 41,332 45,987 76,100
NET ASSETS:
Beginning of period 295,871 188,184 108,253 66,921 194,700 118,600
- ---------------------------------------------------------------------------------------------------------------------------------
End of period $346,959 $295,871 $126,785 $108,253 $240,687 $194,700
=================================================================================================================================
SHARE TRANSACTIONS:
Issued 2,835 16,259 1,906 1,655 3,240 7,864
Issued in connection with acquisition 38 5,881
Reinvested 917 940 404 100 528 246
Redeemed (2,439) (10,888) (1,527) (5,267) (1,808) (3,389)
- ---------------------------------------------------------------------------------------------------------------------------------
Change in shares 1,313 6,349 783 2,369 1,960 4,721
=================================================================================================================================
</TABLE>
(a) Effective June 5, 1995, the Victory Equity Income Portfolio and the Victory
Equity Portfolio merged into the Value Fund and Growth Fund, respectively.
Changes in net assets for periods prior to June 5, 1995 represent the Value
Fund and Growth Fund, respectively.
SEE NOTES TO FINANCIAL STATEMENTS.
101
<PAGE> 103
Statements of Changes in Net Assets
THE VICTORY PORTFOLIOS (Amounts in Thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
OHIO REGIONAL INTERNATIONAL
SPECIAL GROWTH FUND STOCK FUND GROWTH FUND
------------------------------------ ----------------------- -----------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED OCTOBER YEAR ENDED ENDED OCTOBER ENDED OCTOBER
APRIL 30, 31, APRIL 30, APRIL 30, 31, APRIL 30, 31,
1996 1995(b) 1995(a)(b) 1996 1995 1996 1995(b)
---------- ---------- ---------- ---------- ---------- ---------- ----------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income (loss) $ (177) $ (60) $ 49 $ 159 $ 402 $ (144) $ 696
Net realized gains (losses) from
investment transactions (41) 2,326 (2,209) 469 1,485 6,125 (7,848)
Net realized losses from foreign
currency transactions -- -- -- -- -- 139 4,365
Net change in unrealized appreciation
(depreciation) from investments 13,487 (358) 3,557 5,046 3,578 6,178 (1,929)
Change in unrealized appreciation from
translation of assets and liabilities
in foreign currencies -- -- -- -- -- (3,685) 2,233
- ---------------------------------------------------------------------------------------------------------------------------------
Change in net assets resulting from
operations 13,269 1,908 1,397 5,674 5,465 8,613 (2,483)
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (49) (419)
From net investment income by class:
Class A (185) (8)
In excess of net investment income (4)
From net realized gains from investment
transactions (1,485) (1,699)
Tax return of capital (512)
From net realized gains from foreign
currency transactions (3,413)
- ---------------------------------------------------------------------------------------------------------------------------------
Change in net assets from distributions
to shareholders (53) (1,670) (2,118) (8) (3,925)
- ---------------------------------------------------------------------------------------------------------------------------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 18,258 16,956 4,996 4,244 9,494 28,765 42,668
Proceeds from shares issued in connection
with acquisition 19,565 21,742
Dividends reinvested -- -- -- 1,654 2,114 8 3,922
Cost of shares redeemed (4,914) (4,890) (16,411) (4,616) (9,872) (24,949) (36,754)
- ---------------------------------------------------------------------------------------------------------------------------------
Change in net assets from capital
transactions 13,344 31,631 (11,415) 1,282 1,736 3,824 31,578
- ---------------------------------------------------------------------------------------------------------------------------------
Change in net assets 26,613 33,539 (10,071) 5,286 5,083 12,429 25,170
NET ASSETS:
Beginning of period 54,335 20,796 30,867 39,048 33,965 106,477 81,307
- ---------------------------------------------------------------------------------------------------------------------------------
End of period $ 80,948 $ 54,335 $ 20,796 $ 44,334 $ 39,048 $118,906 $106,477
=================================================================================================================================
SHARE TRANSACTIONS:
Issued 1,414 1,241 530 256 630 2,255 3,463
Issued in connection with acquisition 1,816 1,797
Reinvested -- -- -- 103 156 1 337
Redeemed (383) (429) (1,701) (281) (670) (1,979) (3,065)
- ---------------------------------------------------------------------------------------------------------------------------------
Change in shares 1,031 2,628 (1,171) 78 116 277 2,532
=================================================================================================================================
</TABLE>
(a) Audited by other auditors.
(b) Effective June 5, 1995, the Victory Aggressive Growth Portfolio and Victory
Foreign Markets Portfolio merged into the Special Growth Fund and
International Growth Fund, respectively. Changes in net assets for periods
prior to June 5, 1995 represent the Aggressive Growth Portfolio and
International Growth Fund, respectively.
SEE NOTES TO FINANCIAL STATEMENTS.
102
<PAGE> 104
Notes to Financial Statements
April 30, 1996
THE VICTORY PORTFOLIOS (Unaudited)
- --------------------------------------------------------------------------------
1. ORGANIZATION:
The Victory Portfolios (collectively, the "Funds" and individually, a "Fund")
were organized on February 5, 1986, and are registered under the Investment
Company Act of 1940 (the "1940 Act"), as amended, as an open-end investment
company established as a Delaware trust. The Funds are authorized to issue an
unlimited number of shares which are units of beneficial interest without par
value. The Funds presently offer shares of the U.S. Government Obligations Fund,
Prime Obligations Fund, Financial Reserves Fund, Institutional Money Market
Fund, Tax-Free Money Market Fund, Ohio Municipal Money Market Fund, Limited Term
Income Fund, Intermediate Income Fund, Investment Quality Bond Fund, Government
Bond Fund, Government Mortgage Fund, Fund for Income, National Municipal Bond
Fund, New York Tax-Free Fund, Ohio Municipal Bond Fund, Balanced Fund, Stock
Index Fund, Diversified Stock Fund, Value Fund, Growth Fund, Special Value Fund,
Special Growth Fund, Ohio Regional Stock Fund, and International Growth Fund.
The U.S. Government Obligations Fund and Institutional Money Market Fund are
authorized to issue two classes of shares: Investor Shares and Select Shares. As
of April 30, 1996, the U.S. Government Obligations Fund had not yet sold
Investor Shares. The Government Bond Fund, National Municipal Bond Fund, New
York Tax-Free Fund, Balanced Fund, Diversified Stock Fund, Special Value Fund,
Ohio Regional Stock Fund and International Growth Fund, are authorized to issue
two classes of shares: Class A Shares and Class B Shares. Each class of shares
in a Fund has identical rights and privileges except with respect to fees paid
under shareholder servicing or distribution plans, expenses allocable
exclusively to each class of shares, voting rights on matters affecting a single
class of shares, and the exchange privilege of each class of shares.
The U.S. Government Obligations Fund, and Prime Obligations Fund seek to provide
current income consistent with liquidity and stability of principal. The
Financial Reserves Fund, and Institutional Money Market Fund seek to obtain as
high a level of current income as is consistent with preserving capital and
providing liquidity. The Tax-Free Money Market Fund seeks to provide current
interest income free from federal income taxes consistent with relative
liquidity and stability of principal. The Ohio Municipal Money Market Fund seeks
to provide current income exempt from federal regular income tax and the
personal income taxes imposed by the State of Ohio and Ohio municipalities
consistent with the stability of principal. The Limited Term Income Fund seeks
to provide income consistent with limited fluctuation of principal. The
Intermediate Income Fund and Investment Quality Bond Fund seek to provide a high
level of income. The Government Bond Fund seeks to provide as high a level of
current income as is consistent with preservation of capital by investing in
U.S. Government securities. The Government Mortgage Fund seeks to provide a high
level of current income consistent with safety of principal. The Fund for Income
seeks to provide a high level of current income consistent with preservation of
shareholders' capital. The National Municipal Bond Fund seeks to provide a high
level of current interest income exempt from federal income tax, as is
consistent with the preservation of capital. The New York Tax-Free Fund seeks to
provide a high level of current income exempt from federal, New York State, and
New York City income taxes, consistent with the preservation of shareholders'
capital. The Ohio Municipal Bond Fund seeks to produce a high level of current
interest income which is exempt from both federal income tax and Ohio personal
income tax. The Balanced Fund seeks to provide income and long-term growth of
capital. The Stock Index Fund seeks to provide long-term capital appreciation by
attempting to match the investment performance of the Standard & Poor's 500
Composite Stock Index. The Diversified Stock Fund seeks to provide long term
growth of capital. The Value Fund seeks to provide long-term growth of capital
and dividend income. The Growth Fund seeks to provide long-term growth of
capital. The Special Value Fund seeks to provide long-term growth of capital and
dividend income. The Special Growth Fund and Ohio Regional Stock Fund seek to
provide capital appreciation. The International Growth Fund seeks to provide
capital growth consistent with reasonable investment risk.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements. The policies are in
conformity with generally accepted accounting principles. The preparation of
financial statements requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of income and expenses for the
period. Actual results could differ from those of estimates.
SECURITIES VALUATION:
- --------------------
Investments of the U.S. Government Obligations Fund, Prime Obligations Fund,
Financial Reserves Fund, Institutional Money Market Fund, Tax-Free Money Market
Fund, and Ohio Municipal Money Market Fund (collectively "the money market
funds") are valued at either amortized cost which approximates market value, or
at original cost which, combined with accrued interest, approximates market
value. Under the amortized cost valuation method, discount or premium is
amortized on a constant basis to the maturity of the security. In addition, the
money market funds may not (a) purchase any instrument with a remaining maturity
greater than 397 days unless such instrument is subject to a demand feature, or
(b) maintain a dollar-weighted-average portfolio maturity which exceeds 90 days.
103
<PAGE> 105
Notes to Financial Statements--Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Unaudited)
- --------------------------------------------------------------------------------
Investments in common and preferred stocks, corporate bonds, commercial paper,
municipal and foreign government bonds, U.S. Government securities and
securities of U.S. Government agencies of the Limited Term Income Fund,
Intermediate Income Fund, Investment Quality Bond Fund, Government Bond Fund,
Government Mortgage Fund, Fund for Income, National Municipal Bond Fund, New
York Tax-Free Fund, Ohio Municipal Bond Fund, Balanced Fund, Stock Index Fund,
Diversified Stock Fund, Value Fund, Growth Fund, Special Value Fund, Special
Growth Fund, Ohio Regional Stock Fund, and International Growth Fund
(collectively "the variable net asset value funds") are valued at their market
values determined on the basis of the latest available bid prices in the
principal market (closing sales prices if the principal market is an exchange)
in which such securities are normally traded or on the basis of valuation
procedures approved by the Board of Trustees. Investments in investment
companies are valued at their respective net asset values as reported by such
companies. Investments in foreign securities, currency holdings and other assets
and liabilities of the Balanced Fund and International Growth Fund are valued
based on quotations from the primary market in which they are traded and are
translated from the local currency into U.S. dollars using current exchange
rates. The differences between the cost and market values of investments held by
the variable net asset value funds are reflected as either unrealized
appreciation or depreciation.
SECURITIES TRANSACTIONS AND RELATED INCOME:
- -------------------------------------------
Securities transactions are accounted for on the date the security is purchased
or sold (trade date). Interest income is recognized on the accrual basis and
includes, where applicable, the pro rata amortization of premium or accretion of
discount. Dividend income is recorded on the ex-dividend date. Dividend income
is recorded net of foreign taxes withheld. Gains or losses realized on sales of
securities are determined by comparing the identified cost of the security lot
sold with the net sales proceeds.
FOREIGN CURRENCY TRANSLATION:
- -----------------------------
The accounting records of the Funds are maintained in U.S. dollars. Investment
securities, other assets and liabilities of the Balanced Fund and the
International Growth Fund denominated in a foreign currency are translated into
U.S. dollars at the current exchange rate. Purchases and sales of securities,
income receipts and expense payments are translated into U.S. dollars at the
exchange rate on the dates of the transactions.
The Funds isolate that portion of the results of operations resulting from
changes in foreign exchange rates from the fluctuation arising from changes in
market prices of securities held.
Reported net realized foreign exchange gains or losses arise from sales and
maturities of securities, sales of foreign currencies, currency exchange
fluctuations between the trade and settlement dates of securities transactions,
and the difference between the amount of assets and liabilities recorded and the
U.S. dollar equivalent of the amounts actually received or paid. Net unrealized
foreign exchange gains and losses arise from changes in the value of assets and
liabilities, including investments in securities, resulting from changes in
currency exchange rates.
REPURCHASE AGREEMENTS:
- -----------------------
Each Fund may acquire repurchase agreements from financial institutions such as
banks and broker-dealers which the Funds' investment adviser deems creditworthy
under guidelines approved by the Board of Trustees, subject to the seller's
agreement to repurchase such securities at a mutually agreed-upon date and
price. The repurchase price generally equals the price paid by a Fund plus
interest negotiated on the basis of current short-term rates, which may be more
or less than the rate on the underlying Fund securities. The seller, under a
repurchase agreement, is required to maintain the value of collateral held
pursuant to the agreement at not less than the repurchase price (including
accrued interest). Securities subject to repurchase agreements are held by the
Funds' custodian or another qualified custodian or in the Federal
Reserve/Treasury book-entry system. Repurchase agreements are considered to be
loans by a Fund under the 1940 Act.
FORWARD CURRENCY CONTRACTS:
- ----------------------------
A forward currency contract ("forward") is an agreement between two parties to
buy and sell a currency at a set price on a future date. The market value of the
forward fluctuates with changes in currency exchange rates. The forward is
marked-to-market daily and the change in market value is recorded by a Fund as
unrealized appreciation or depreciation. When the forward is closed, the Fund
records a realized gain or loss equal to the fluctuation in value during the
period the forward was opened. A Fund could be exposed to risk if a counterparty
is unable to meet the terms of a forward or if the value of the currency changes
unfavorably.
FUTURES CONTRACTS:
- -----------------
The Balanced Fund, Stock Index Fund, Diversified Stock Fund, Value Fund, Growth
Fund, Special Value Fund, Special Growth Fund, Ohio Regional Stock Fund, and
International Growth Fund may enter into contracts for the future delivery of
104
<PAGE> 106
Notes to Financial Statements--Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Unaudited)
- --------------------------------------------------------------------------------
securities or foreign currencies and futures contracts based on a specific
security, class of securities, foreign currency or an index, purchase or sell
options on any such futures contracts and engage in related closing
transactions. A futures contract on a securities index is an agreement
obligating either party to pay, and entitling the other party to receive, while
the contract is outstanding, cash payments based on the level of a specified
securities index. The Funds may enter into futures contracts in an effort to
hedge against market risks. The acquisition of put and call options on futures
contracts will give the Funds the right (but not the obligation), for a
specified price, to sell or to purchase the underlying futures contract, upon
exercise of the option, at any time during the option period. Futures
transactions involve brokerage costs and require the Funds to segregate assets
to cover contracts that would require it to purchase securities or currencies. A
Fund may lose the expected benefit of futures transactions if interest rates,
exchange rates or securities prices change in an unanticipated manner. Such
unanticipated changes may also result in lower overall performance than if the
Fund had not entered into any futures transactions. In addition, the value of a
Fund's futures positions may not prove to be perfectly or even highly correlated
with the value of its portfolio securities or foreign currencies, limiting a
Fund's ability to hedge effectively against interest rate, exchange rate and/or
market risk and giving rise to additional risks. There is no assurance of
liquidity in the secondary market for purposes of closing out futures positions.
SECURITIES PURCHASED ON A WHEN-ISSUED AND DELAYED DELIVERY BASIS:
- ------------------------------------------------------------------
Each Fund may purchase securities on a "when-issued" basis. When-issued
securities are securities purchased for delivery beyond the normal settlement
date at a stated price and/or yield, thereby, involving the risk that the price
and/or yield obtained may be more or less than those available in the market
when delivery takes place. At the time a Fund makes the commitment to purchase a
security on a when-issued basis, the Fund records the transaction and reflects
the value of the security in determining net asset value. Normally, the
settlement date occurs within one month of the purchase. A segregated account is
established and the Funds maintain cash and marketable securities at least equal
in value to commitments for when-issued securities. Securities purchased on a
when-issued basis or delayed delivery basis do not earn income until settlement
date.
DIVIDENDS TO SHAREHOLDERS:
- -------------------------
Dividends from net investment income are declared daily and paid monthly for the
money market funds. Dividends from net investment income are declared and paid
quarterly for the Stock Index Fund, Diversified Stock Fund, Value Fund, Growth
Fund, Special Value Fund, Special Growth Fund, Ohio Regional Stock Fund, and
International Growth Fund. Dividends from net investment income are declared and
paid monthly and for the Limited Term Income Fund, Intermediate Income Fund,
Investment Quality Bond Fund, Government Bond Fund, Government Mortgage Fund,
Fund for Income, National Municipal Bond Fund, New York Tax-Free Fund, Ohio
Municipal Bond Fund, and Balanced Fund. Distributable net realized capital
gains, if any, are declared and distributed at least annually.
Dividends from net investment income and from net realized capital gains are
determined in accordance with income tax regulations which may differ from
generally accepted accounting principles. These differences are primarily due to
differing treatments for mortgage-backed securities, foreign currency
transactions, expiring capital loss carryforwards and deferrals of certain
losses. Permanent book and tax basis differences are reflected in the components
of net assets.
FEDERAL INCOME TAXES:
- ---------------------
It is the policy of each Fund to continue to qualify as a regulated investment
company by complying with the provisions available to certain investment
companies, as defined in applicable sections of the Internal Revenue Code, and
to make distributions of net investment income and net realized capital gains
sufficient to relieve it from all, or substantially all, federal income taxes.
OTHER:
- ------
Expenses that are directly related to one of the Funds are charged directly to
that Fund. Other operating expenses of the Funds are prorated to each Fund on
the basis of relative net assets or other appropriate basis. Fees paid under a
Fund's shareholder servicing or distribution plans are borne by the specific
class of shares to which they apply.
All expenses in connection with Intermediate Income, Investment Quality Bond,
Balanced, Stock Index, Value, Growth, Special Value, and Special Growth Funds'
organization and registration under the 1940 Act and the Securities Act of 1933
were paid by those Funds. Such expenses are being amortized over a period of two
years commencing with the respective inception dates.
Certain prior year balances have been reclassified to be consistent with current
year presentation.
105
<PAGE> 107
Notes to Financial Statements--Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Unaudited)
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES:
Purchases and sales of securities (excluding short-term securities) for the six
months ended April 30, 1996 were as follows (amounts in thousands):
<TABLE>
<CAPTION>
PURCHASES SALES
------------ ------------
<S> <C> <C>
Limited Term Income Fund............. $ 247,974 $ 250,452
Intermediate Income Fund............. 229,016 191,414
Investment Quality Bond Fund......... 131,999 112,009
Government Bond Fund................. 51,623 52,868
Government Mortgage Fund............. 89,102 90,523
Fund for Income...................... 3,505 4,109
National Municipal Bond Fund......... 43,194 11,318
New York Tax-Free Fund............... -- 847
Ohio Municipal Bond Fund............. 25,686 22,477
Balanced Fund........................ 118,596 105,386
Stock Index Fund..................... 53,153 1,590
Diversified Stock Fund............... 244,549 219,131
Value Fund........................... 54,247 43,307
Growth Fund.......................... 19,180 15,111
Special Value Fund................... 90,146 60,046
Special Growth Fund.................. 26,826 12,097
Ohio Regional Stock Fund............. 1,244 1,218
International Growth Fund............ 118,498 107,445
</TABLE>
4. RELATED PARTY TRANSACTIONS:
Investment advisory services are provided to all the Funds by Key Mutual Fund
Advisers, Inc. ("the Adviser"), a wholly owned subsidiary of KeyCorp Asset
Management Holdings, Inc., which is a wholly owned subsidiary of KeyBank
National Association ("Key"), formerly Society National Bank, a wholly owned
subsidiary of KeyCorp. Under the terms of the investment advisory agreements,
the Adviser is entitled to receive fees based on a percentage of the average
daily net assets of the Funds. KeyTrust Company of Ohio, serving as custodian
for all of the Funds, received custodian fees in addition to reimbursement of
actual out-of-pocket expenses incurred.
Key and its affiliated brokerage and banking companies also serve as Shareholder
Servicing Agents for all the Funds except the U.S. Government Obligations Fund,
Financial Reserves Fund, Institutional Money Market Fund (Investor Shares) and
Stock Index Fund. As such, Key and its affiliates provide support services to
their clients who are shareholders, which may include establishing and
maintaining accounts and records, processing dividend and distribution payments,
providing account information, assisting in processing of purchase, exchange and
redemption requests, and assisting shareholders in changing dividend options,
account designations and addresses. For providing such services, Key and its
affiliates may receive a fee computed daily of up to 0.25% of the average net
assets of the Funds serviced.
Concord Holding Corporation (the "Administrator"), an indirect, wholly-owned
subsidiary of The BISYS Group, Inc. ("BISYS") serves as the administrator of the
Funds, and Victory Broker Dealer Services, Inc. (the "Distributor"), a wholly-
owned subsidiary of BISYS, serves as the distributor to the Funds. Certain
officers of the Funds are affiliated with BISYS. Such officers receive no direct
payments or fees from the Fund for serving as officers of the Funds.
Under the terms of the administration agreement, the Administrator's fee are
computed as 0.15% of the average daily net assets of the Funds. Pursuant to a
12b-1 Plan, the Distributor may receive fees computed as 0.75% of the average
daily net assets of Class B Shares of the Government Bond Fund, National
Municipal Bond Fund, New York Tax-Free Fund, Balanced Fund, Diversified Stock
Fund, Special Value Fund, Ohio Regional Stock Fund and International Growth Fund
for providing distribution services and is entitled to receive commissions on
sales of shares of the variable net asset value funds. For the six months ended
April 30, 1996, the Distributor received approximately $360,000 from commissions
earned on sales of shares of the variable net asset value funds a portion of
which the Distributor reallowed to dealers of the Funds' shares including
approximately $307,000 to affiliates of the Funds. BISYS Fund Services, Ohio,
Inc. (the Company), an affiliate of BISYS, serves the Funds as Mutual Fund
Accountant. Under the terms of the Fund Accounting Agreement, the Company's fee
is based on a percentage of average daily net assets.
Fees may be voluntarily reduced to assist the Funds in maintaining competitive
expense ratios.
Additional information regarding related party transactions is as follows for
the six months ended April 30, 1996:
106
<PAGE> 108
Notes to Financial Statements--Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTMENT MUTUAL FUND
ADVISORY ADMINISTRATION ACCOUNTANT CUSTODIAN
FEES FEES FEES FEES
------------------------------- -------------- ----------- ---------
(PERCENTAGES
OF AVERAGE DAILY
NET ASSETS)
BEFORE VOLUNTARY VOLUNTARY
VOLUNTARY FEE FEE FEE ANNUAL ANNUAL
REDUCTIONS REDUCTIONS REDUCTIONS FEE FEE
---------------- ---------- -------------- ----------- ---------
(000) (000) (000) (000)
<S> <C> <C> <C> <C> <C>
U. S. Government Obligations Fund 0.35% $ -- $ -- $ 44 $ 109
Prime Obligations Fund 0.35% -- -- 44 48
Financial Reserves Fund 0.50% 320 -- 40 80
Institutional Money Market Fund 0.25% 402 299 45 65
Tax-Free Money Market Fund 0.35% 19 -- 37 35
Ohio Municipal Money Market Fund 0.50% 850 -- 23 56
Limited Term Income Fund 0.50% 31 -- 28 18
Intermediate Income Fund 0.75% 158 -- 29 18
Investment Quality Bond Fund 0.75% 91 -- 28 16
Government Bond Fund 0.55% 34 -- 20 5
Government Mortgage Fund 0.50% 3 -- 27 17
Fund for Income 0.50% 34 10 27 7
National Municipal Bond Fund 0.55% 80 22 30 5
New York Tax-Free Fund 0.55% 40 8 26 3
Ohio Municipal Bond Fund 0.60% 49 -- 26 8
Balanced Fund 1.00% 195 -- 44 26
Stock Index Fund 0.60% 170 143 40 37
Diversified Stock Fund 0.65% 54 -- 103 47
Value Fund 1.00% 62 -- 38 32
Growth Fund 1.00% 70 -- 36 13
Special Value Fund 1.00% 68 -- 36 25
Special Growth Fund 1.00% 33 -- 30 17
Ohio Regional Stock Fund 0.75% 4 -- 23 5
International Growth Fund 1.10% 28 -- 48 93
</TABLE>
107
<PAGE> 109
Notes to Financial Statements--Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Unaudited)
- --------------------------------------------------------------------------------
5. CAPITAL SHARE TRANSACTIONS:
Transactions in capital shares for the Funds with multiple share classes were as
follows (amounts in thousands):
<TABLE>
<CAPTION>
INSTITUTIONAL
MONEY MARKET FUND
------------------------------------
SIX MONTHS
SIX MONTHS ENDED
ENDED OCTOBER YEAR ENDED
APRIL 30, 31, APRIL 30,
1996 1995(b) 1995(a)
---------- ---------- ----------
<S> <C> <C> <C>
CAPITAL AND SHARE TRANSACTIONS:
Investor Shares(c):
Issued 667,441 629,396 1,197,333
Reinvested 119 133 1,508
Redeemed (592,842) (574,761) (1,290,390)
- ------------------------------------------------------------------------------
Total 74,718 54,768 91,549
Select Shares(c):
Issued 337,178 19,479
Reinvested 953 11
Redeemed (281,183) (8,011)
- ------------------------------------------------------------------------------
Total 56,948 11,479
</TABLE>
<TABLE>
<CAPTION>
NATIONAL MUNICIPAL
GOVERNMENT BOND FUND BOND FUND NEW YORK TAX-FREE FUND
---------------------------------- ---------------------------------- ----------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
SIX MONTHS ENDED SIX MONTHS ENDED SIX MONTHS ENDED
ENDED OCTOBER YEAR ENDED ENDED OCTOBER YEAR ENDED ENDED OCTOBER YEAR ENDED
APRIL 30, 31, APRIL 30, APRIL 30, 31, APRIL 30, APRIL 30, 31, APRIL 30,
1996 1995 1995(a)(d) 1996 1995 1995(a)(d) 1996 1995 1995(a)(d)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CAPITAL
TRANSACTIONS:
Class A Shares:
Proceeds from
shares issued... 3,243 3,055 13,632 44,799 6,441 4,646 1,282 3,395 6,305
Dividends
reinvested...... 788 1,283 73 1 211 102 281 468 455
Cost of shares
redeemed........ (5,759) (64,259) (48,532) (9) (169) (310) (2,923) (6,784) (15,295)
- ----------------------------------------------------------------------------------------------------------------------------
Total............. (1,728) (59,921) (34,827) 44,791 6,483 4,438 (1,360) (2,921) (8,535)
Class B Shares:
Proceeds from
shares issued... 392 745 150 761 341 146 527 2,132
Dividends
reinvested...... 22 9 2 17 5 1 42 41
Cost of shares
redeemed........ (85) (10) (21) (50) (198) (284)
- ----------------------------------------------------------------------------------------------------------------------------
Total............. 329 744 152 757 296 147 371 1,889
SHARE
TRANSACTIONS:
Class A Shares:
Issued............ 329 314 1,459 4,342 651 504 99 271 482
Reinvested........ 80 131 8 61 21 11 22 37 35
Redeemed.......... (586) (6,584) (5,266) (925) (17) (33) (222) (552) (1,185)
- ----------------------------------------------------------------------------------------------------------------------------
Total............. (177) (6,139) (3,799) 3,478 655 482 (101) (244) (668)
Class B Shares:
Issued............ 40 76 16 75 34 15 41 172
Reinvested........ 2 1 1 -- 3 2
Redeemed.......... (9) (1) (2) (4) (15) (22)
- ----------------------------------------------------------------------------------------------------------------------------
Total............. 33 76 16 74 30 15 29 152
</TABLE>
(a) Audited by other auditors.
(b) Effective June 5, 1995, the Fund designated the existing shares as
Institutional Shares and commenced offering Service Shares.
(c) Effective March 1, 1996, the Fund redesignated Institutional Shares as
Investor Shares and Service Shares as Select Shares.
(d) Effective September 26, 1994, the Fund designated the existing shares as
Class A Shares and commenced offering Class B Shares.
108
<PAGE> 110
Notes to Financial Statements--Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCED FUND DIVERSIFIED STOCK FUND SPECIAL VALUE FUND
----------------------- ----------------------- -----------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED OCTOBER ENDED OCTOBER ENDED OCTOBER
APRIL 30, 31, APRIL 30, 31, APRIL 30, 31,
1996(a) 1995 1996(a) 1995 1996(a) 1995
(000) (000) (000) (000) (000) (000)
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Class A Shares:
Proceeds from shares issued............ 45,277 111,470 65,044 144,852 41,142 87,892
Dividends reinvested................... 4,874 6,726 36,282 36,846 6,522 2,712
Cost of shares redeemed................ (28,007) (66,930) (50,800) (67,677) (22,994) (37,371)
- -------------------------------------------------------------------------------------------------------------------
Total.................................. 22,759 51,266 50,526 114,021 24,670 53,233
Class B Shares:
Proceeds from shares issued............ 614 1,005 84
Dividends reinvested................... 1 1 --
Cost of shares redeemed................ -- (7) --
- -------------------------------------------------------------------------------------------------------------------
Total.................................. 615 999 84
SHARE TRANSACTIONS:
Class A Shares:
Issued................................. 3,948 11,125 4,732 11,560 3,234 7,864
Reinvested............................. 426 659 2,805 3,276 528 246
Redeemed............................... (2,444) (6,762) (3,731) (5,529) (1,808) (3,389)
- -------------------------------------------------------------------------------------------------------------------
Total.................................. 1,930 5,022 3,806 9,307 1,954 4,721
Class B Shares:
Issued................................. 53 69 6
Reinvested............................. -- -- --
Redeemed............................... -- -- --
- -------------------------------------------------------------------------------------------------------------------
Total.................................. 53 69 6
</TABLE>
(a) Effective March 1, 1996, the Fund designated the existing shares as Class A
Shares and commenced offering Class B Shares.
109
<PAGE> 111
Notes to Financial Statements--Continued
April 30, 1996
THE VICTORY PORTFOLIOS (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
OHIO REGIONAL INTERNATIONAL
STOCK FUND GROWTH FUND
----------------------- -----------------------
SIX MONTHS
SIX MONTHS ENDED SIX MONTHS YEAR ENDED
ENDED OCTOBER ENDED OCTOBER
APRIL 30, 31, APRIL 30, 31,
1996 1995 1996 1995
(000) (000) (000) (000)
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Class A Shares:
Proceeds from shares issued.................................. 4,083 9,494 28,704 42,668
Proceeds from shares issued in connection with acquisition... 21,742
Dividends reinvested......................................... 1,654 2,114 8 3,922
Cost of shares redeemed...................................... (4,616) (9,872) (24,949) (36,754)
- ---------------------------------------------------------------------------------------------------------------
Total........................................................ 1,121 1,736 3,763 31,578
Class B Shares:(a)
Proceeds from shares issued.................................. 161 61
Dividends reinvested.........................................
Cost of shares redeemed......................................
- ---------------------------------------------------------------------------------------------------------------
Total........................................................ 161 61
SHARE TRANSACTIONS:
Class A Shares:
Issued....................................................... 246 630 2,250 3,463
Issued in connection with acquisition........................ 1,797
Reinvested................................................... 103 156 1 337
Redeemed..................................................... (281) (670) (1,979) (3,065)
- ---------------------------------------------------------------------------------------------------------------
Total........................................................ 68 116 272 2,532
Class B Shares:(a)
Issued....................................................... 10 5
Reinvested...................................................
Redeemed.....................................................
- ---------------------------------------------------------------------------------------------------------------
Total........................................................ 10 5
</TABLE>
(a) Effective March 1, 1996, the Fund designated the existing shares as Class A
Shares and commenced offering Class B Shares.
6. CONCENTRATION OF CREDIT RISK:
The Ohio Municipal Money Market Fund, New York Tax-Free Fund and Ohio Municipal
Bond Fund invest primarily in debt obligations issued by the respective States
and their political subdivisions, agencies and public authorities to obtain
funds for various public purposes and the Ohio Regional Stock Fund invests
primarily in equity securities issued by organizations domiciled in Ohio. These
Funds are more susceptible to economic and political factors that may adversely
affect companies domiciled in these states and issuers of the States' specific
municipal securities than are municipal bond funds and stock funds that are not
geographically concentrated to the same extent.
110
<PAGE> 112
THE VICTORY PORTFOLIOS Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. GOVERNMENT OBLIGATIONS FUND
-------------------------------------------------------------------
SIX MONTHS YEAR ENDED OCTOBER 31,
ENDED APRIL 30, -----------------------------------------------
1996(a) 1995(b) 1994 1993 1992
--------------- -------- -------- -------- --------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
- -----------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income 0.025 0.052 0.032 0.026 0.036
Distributions
Net investment income (0.025) (0.052) (0.032) (0.026) (0.036)
- -----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
=================================================================================================================
Total Return 2.52%(c) 5.38% 3.30% 2.62% 3.66%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 1,184,314 $964,929 $412,048 $515,734 $579,836
Ratio of expenses to average net assets 0.60%(d) 0.58% 0.63% 0.60% 0.60%
Ratio of net investment income to average
net assets 4.97%(d) 5.28% 3.20% 2.57% 3.50%
Ratio of expenses to average net assets* 0.60% 0.80%
Ratio of net investment income to average
net assets* 5.26% 3.03%
</TABLE>
- ---------------
<TABLE>
<C> <S>
* During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the
ratios would have been as indicated.
(a) Select Shares. Investor Shares have not commenced operations as of April 30, 1996.
(b) Effective June 5, 1995, the Victory U.S. Treasury Money Market Portfolio merged into the U.S. Government
Obligations Fund. Financial highlights for the periods prior to June 5, 1995 represent the U.S. Government
Obligation Fund.
(c) Not annualized.
(d) Annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
111
<PAGE> 113
THE VICTORY PORTFOLIOS Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRIME OBLIGATIONS FUND
-----------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, --------------------------------------------------
1996 1995 1994 1993 1992
---------- ----------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
- ----------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income 0.024 0.051 0.035 0.030 0.037
Net realized losses from investment
transactions -- -- (0.003) -- --
- ----------------------------------------------------------------------------------------------------------
Total from Investment Activities 0.024 0.051 0.032 0.030 0.037
- ----------------------------------------------------------------------------------------------------------
Distributions
Net investment income (0.024) (0.051) (0.035) (0.030) (0.037)
- ----------------------------------------------------------------------------------------------------------
Capital transactions 0.003(a)
- ----------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
==========================================================================================================
Total Return 2.39%(b) 5.26% 3.57% 3.05% 3.77%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $446,971 $ 456,266 $782,303 $720,024 $524,338
Ratio of expenses to average net assets 0.84%(c) 0.74% 0.62% 0.60% 0.61%
Ratio of net investment income to
average net assets 4.84%(c) 5.09% 3.52% 2.96% 3.68%
Ratio of expenses to average net
assets* 0.79% 0.60%
Ratio of net investment income to
average net assets* 3.35% 2.96%
</TABLE>
- ---------------
<TABLE>
<C> <S>
* During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the
ratios would have been as indicated.
(a) During 1994, KeyCorp made a capital contribution of approximately $2,506,000 for losses realized from the
disposition of certain securities.
(b) Not annualized.
(c) Annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
112
<PAGE> 114
THE VICTORY PORTFOLIOS Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FINANCIAL RESERVES FUND
-----------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, --------------------------------------------------
1996 1995(c) 1994(b) 1993(a)(b) 1992(a)(b)
---------- ----------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
- ----------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income 0.025 0.054 0.035 0.030 0.040
Distributions
Net investment income (0.025) (0.054) (0.035) (0.030) (0.040)
- ----------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
- ----------------------------------------------------------------------------------------------------------
Total Return 2.51%(d) 5.50% 3.57% 2.81% 3.76%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $834,562 $ 762,835 $433,266 $457,872 $523,889
Ratio of expenses to average net assets 0.66%(e) 0.52% 0.57% 0.55% 0.55%
Ratio of net investment income to
average net assets 4.99%(e) 4.67% 3.48% 2.78% 3.67%
Ratio of expenses to average net
assets* 0.74%(e) 0.74% 0.73% 0.70% 0.70%
Ratio of net investment income to
average net assets* 4.91%(e) 4.45% 3.32% 2.63% 3.52%
</TABLE>
- ---------------
<TABLE>
<C> <S>
* During the period, certain fees were voluntarily reduced and/or reimbursed. If such voluntary fee reductions
and/or reimbursements had not occurred, the ratios would have been as indicated.
(a) Effective May 16, 1991, Ameritrust Company National Association became investment adviser to the Fund. Effective
March 16, 1992 Ameritrust was acquired by Society Corporation and merged into Society National Bank, a
wholly-owned subsidiary of Society Corporation, on July 13, 1992. On January 7, 1993, Society Asset Management,
Inc., a wholly-owned subsidiary of Society Corporation, was named investment adviser to the Fund.
(b) Audited by other auditors.
(c) Effective June 5, 1995, the Victory Financial Reserves Portfolio became the Financial Reserves Fund.
(d) Not annualized.
(e) Annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
113
<PAGE> 115
THE VICTORY PORTFOLIOS Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INSTITUTIONAL MONEY MARKET FUND
-------------------------------------------------------------------------------------------------------
INVESTOR SHARES(f) SELECT SHARES(f)
------------------------- --------------------------
SIX MONTHS
SIX MONTHS ENDED SIX MONTHS JUNE 5,
ENDED OCTOBER ENDED 1995 TO YEAR ENDED APRIL 30,
APRIL 30, 31, APRIL 30, OCTOBER 31, --------------------------------------------
1996 1995(e) 1996 1995(a)(e) 1995(d) 1994(d) 1993(d) 1992(d)
----------- ---------- ----------- ----------- -------- -------- -------- --------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 1.000 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
- ---------------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income 0.027 0.290 0.025 0.012 0.500 0.028 0.032 0.051
Distributions
Net investment income (0.027) (0.290) (0.025) (0.012) (0.500) (0.028) (0.032) (0.051)
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
END OF PERIOD $ 1.000 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
=================================================================================================================================
Total Return 2.69%(b) 2.90%(b) 2.57%(b) 1.23%(b) 4.91% 2.80% 3.26% 5.21%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period
(000) $ 579,232 $504,536 $ 68,423 $ 11,479 $449,814 $541,229 $155,097 $177,640
Ratio of expenses to
average net assets 0.26%(c) 0.26%(c) 0.52%(c) 0.51%(c) 0.27% 0.55% 0.43% 0.30%
Ratio of net investment
income to average net
assets 5.33%(c) 5.69%(c) 5.00%(c) 5.33%(c) 4.91% 2.78% 3.19% 5.06%
Ratio of expenses to
average net assets* 0.48%(c) 0.49%(c) 0.73%(c) 1.00%(c) 0.51% 0.55% 0.48% 0.42%
Ratio of net investment
income to average net
assets* 5.12%(c) 5.46%(c) 4.79%(c) 4.84%(c) 4.67% 2.78% 3.14% 4.94%
</TABLE>
- ---------------
<TABLE>
<C> <S>
* During the period, certain fees were voluntarily reduced and/or reimbursed. If such voluntary fee reductions
and/or reimbursements had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Audited by other auditors.
(e) Effective June 5, 1995, the Victory Institutional Money Market Portfolio became the Institutional Money Market
Fund, and the Fund designated the existing shares as Institutional Shares and commenced offering Service Shares.
(f) Effective March 1, 1996, the Fund redesignated Institutional Shares as Investor Shares and Service Shares as
Select Shares.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
114
<PAGE> 116
THE VICTORY PORTFOLIOS Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TAX-FREE MONEY MARKET FUND
----------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, -------------------------------------------------
1996 1995 1994 1993 1992
---------- ---------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
- ----------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income 0.015 0.034 0.021 0.020 0.027
Distributions
Net investment income (0.015) (0.034) (0.021) (0.020) (0.027)
- ----------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
==========================================================================================================
Total Return 1.54%(a) 3.42% 2.17% 2.06% 2.77%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $300,129 $307,726 $198,561 $189,351 $151,012
Ratio of expenses to average net assets 0.76%(b) 0.61% 0.60% 0.59% 0.61%
Ratio of net investment income to
average net assets 3.00%(b) 3.36% 2.14% 2.04% 2.70%
Ratio of expenses to average net assets* 0.77%(b) 0.62% 0.79% 0.60%
Ratio of net investment income to
average net assets* 2.99%(b) 3.35% 1.95% 2.02%
</TABLE>
- ---------------
<TABLE>
<C> <S>
* During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the
ratios would have been as indicated.
(a) Not annualized.
(b) Annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
115
<PAGE> 117
THE VICTORY PORTFOLIOS Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
OHIO MUNICIPAL MONEY MARKET FUND
---------------------------------------------------------------------------------
TWO MONTHS
SIX MONTHS ENDED YEAR ENDED AUGUST 31,
ENDED APRIL OCTOBER 31, -------------------------------------------------
30, 1996 1995 1995(b) 1994(c) 1993(a)(c) 1992(a)(c)
----------- ----------- ---------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
- ------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income 0.016 0.006 0.033 0.021 0.021 0.031
Distributions
Net investment income (0.016) (0.006) (0.033) (0.021) (0.021) (0.031)
- ------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
============================================================================================================
Total Return 1.56%(d) 0.55%(d) 3.33% 2.10% 2.14% 3.18%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period
(000) $ 577,334 $ 510,416 $502,453 $318,132 $262,681 $252,705
Ratio of expenses to
average net assets 0.65%(e) 0.64%(e) 0.63% 0.65% 0.65% 0.65%
Ratio of net investment
income to average net
assets 3.11%(e) 3.31%(e) 3.33% 2.08% 2.12% 3.13%
Ratio of expenses to
average net assets* 0.95%(e) 0.92%(e) 0.94% 0.76% 0.72% 0.68%
Ratio of net investment
income to average net
assets* 2.80%(e) 3.03%(e) 3.02% 1.97% 2.05% 3.10%
</TABLE>
- ---------------
<TABLE>
<C> <S>
* During the period, certain fees were voluntarily reduced and/or reimbursed. If such voluntary fee reductions
and/or reimbursements had not occurred, the ratios would have been as indicated.
(a) Effective February 27, 1991, Ameritrust Company National Association became investment adviser to the Fund.
Effective March 16, 1992, Ameritrust was acquired by Society Corporation and merged into Society National Bank, a
wholly-owned subsidiary of Society Corporation, on July 13, 1992. Effective February 3, 1993, Society Asset
Management, Inc. a wholly-owned subsidiary of Society Corporation was named investment adviser to the Fund.
(b) Effective June 5, 1995, the Victory Ohio Municipal Money Market Portfolio became the Ohio Municipal Money Market
Fund.
(c) Audited by other auditors.
(d) Not annualized.
(e) Annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
116
<PAGE> 118
THE VICTORY PORTFOLIOS Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIMITED TERM INCOME FUND
----------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL -------------------------------------------------
30, 1996 1995(a) 1994 1993 1992
---------- ---------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.15 $ 9.88 $ 10.53 $ 10.45 $ 10.33
- ----------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income 0.29 0.57 0.54 0.57 0.64
Net realized and unrealized gains
(losses) from investments (0.13) 0.27 (0.61) 0.08 0.13
- ----------------------------------------------------------------------------------------------------------
Total from Investment Activities 0.16 0.84 (0.07) 0.65 0.77
- ----------------------------------------------------------------------------------------------------------
Distributions
Net investment income (0.29) (0.57) (0.54) (0.57) (0.64)
Net realized gains -- -- (0.04) -- (0.01)
- ----------------------------------------------------------------------------------------------------------
Total Distributions (0.29) (0.57) (0.58) (0.57) (0.65)
- ----------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 10.02 $ 10.15 $ 9.88 $ 10.53 $ 10.45
==========================================================================================================
Total Return (excludes sales charges) 1.62%(b) 8.77% (0.66)% 6.39% 7.77%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $169,815 $172,002 $ 79,150 $ 81,771 $ 55,565
Ratio of expenses to average net assets 0.85%(c) 0.78% 0.79% 0.77% 0.78%
Ratio of net investment income to
average net assets 5.64%(c) 5.77% 5.29% 5.49% 6.18%
Ratio of expenses to average net assets* 0.88%(c) 0.79% 0.97% 0.78%
Ratio of net investment income to
average net assets* 5.61%(c) 5.76% 5.10% 5.48%
Portfolio turnover 149.53% 97.25% 41.26% 50.27% 14.97%
</TABLE>
- ---------------
<TABLE>
<C> <S>
* During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the
ratios would have been as indicated.
(a) Effective June 5, 1995, the Victory Short-term Government Income Portfolio merged into the Limited Term Income
Fund. Financial highlights for the periods prior to June 5, 1995 represent the Limited Term Income Fund.
(b) Not annualized.
(c) Annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
117
<PAGE> 119
THE VICTORY PORTFOLIOS Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE INCOME FUND INVESTMENT QUALITY BOND FUND
--------------------------------------- ------------------------------------
DECEMBER DECEMBER
SIX MONTHS 10, 1993 SIX MONTHS YEAR ENDED 10, 1993
ENDED YEAR ENDED TO OCTOBER ENDED OCTOBER TO OCTOBER
APRIL 30, OCTOBER 31, 31, APRIL 30, 31, 31,
1996 1995 1994(a) 1996 1995(d) 1994(a)
---------- ------------- ---------- ---------- ---------- ----------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD $ 9.69 $ 9.25 $ 10.00 $ 9.76 $ 9.10 $ 10.00
- ----------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income 0.27 0.59 0.52 0.28 0.62 0.53
Net realized and
unrealized gains
(losses) from
investments (0.22) 0.45 (0.76) (0.27) 0.67 (0.92)
- ----------------------------------------------------------------------------------------------------------
Total from
Investment
Activities 0.05 1.04 (0.24) 0.01 1.29 (0.39)
- ----------------------------------------------------------------------------------------------------------
Distributions
Net investment income (0.27) (0.60) (0.51) (0.28) (0.63) (0.51)
- ----------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 9.47 $ 9.69 $ 9.25 $ 9.49 $ 9.76 $ 9.10(b)
==========================================================================================================
Total Return(excludes
sales charges) 0.53%(b) 11.65% (2.48)%(b) 0.04%(b) 14.63% (3.92)%(b)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period
(000) $191,043 $ 163,281 $112,923 $133,416 $125,248 $ 94,685
Ratio of expenses to
average net assets 0.94%(c) 0.82% 0.79%(c) 1.00%(c) 0.84% 0.79%(c)
Ratio of net investment
income to average net
assets 5.64%(c) 6.32% 6.23%(c) 5.96%(c) 6.59% 6.33%(c)
Ratio of expenses to
average net assets* 1.12%(c) 1.06% 1.25%(c) 1.15%(c) 1.06% 1.25%(c)
Ratio of net investment
income to average net
assets* 5.46%(c) 6.08% 5.77%(c) 5.81%(c) 6.37% 5.87%(c)
Portfolio turnover 112.61% 98.07% 55.06% 90.86% 160.01% 89.92%
</TABLE>
- ---------------
<TABLE>
<C> <S>
* During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the
ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Effective June 5, 1995, the Victory Corporate Bond Portfolio merged into the Investment Quality Bond Fund.
Financial highlights for the periods prior to June 5, 1995 represent the Investment Quality Bond Fund.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
118
<PAGE> 120
THE VICTORY PORTFOLIOS Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT BOND FUND
---------------------------------------------------------------------------------------------
CLASS A CLASS B
------------------------------------- -----------------------------------------------------
SIX MONTHS SIX MONTHS
SIX MONTHS ENDED SIX MONTHS ENDED SEPTEMBER 26, MAY 3,
ENDED OCTOBER YEAR ENDED ENDED OCTOBER 1994 TO 1993 TO
APRIL 30, 31, APRIL 30, APRIL 30, 31, APRIL 30, APRIL 30,
1996 1995(e) 1995(d)(f) 1996 1995(e) 1995(a)(d)(f) 1994(a)(d)
----------- ---------- ---------- ----------- ---------- ------------- ----------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD $ 9.87 $ 9.44 $ 9.45 $ 9.85 $ 9.43 $ 9.25 $ 10.00
- -------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income 0.29 0.33 0.55 0.25 0.25 0.31 0.45
Net realized and
unrealized gains
(losses) from
investments -- 0.40 (0.02) -- 0.45 0.17 (0.54)
- -------------------------------------------------------------------------------------------------------------------------
Total from
Investment
Activities 0.29 0.73 0.53 0.25 0.70 0.48 (0.09)
- -------------------------------------------------------------------------------------------------------------------------
Distributions
Net investment income (0.29) (0.29) (0.54) (0.25) (0.22) (0.30) (0.45)
In excess of net
investment income -- (0.01) -- -- (0.06) --
Net realized gains (0.01)
- -------------------------------------------------------------------------------------------------------------------------
Total
Distributions (0.29) (0.30) (0.54) (0.25) (0.28) (0.30) (0.46)
- -------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
END OF PERIOD $ 9.87 $ 9.87 $ 9.44 $ 9.85 $ 9.85 $ 9.43 $ 9.45
=========================================================================================================================
Total Return
(excludes sales charges) (0.76)%(b) 7.86%(b) 5.87% (5.85)%(b) 7.47%(b) 5.26%(b) (1.06)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets,
End of Period (000) $25,163 $ 27,856 $ 84,567 $ 1,191 $ 909 $ 155 $120,636
Ratio of expenses to
average net assets 0.93%(c) 0.92%(c) 0.63% 1.70%(c) 1.82%(c) 1.43%(c) 0.38%(c)
Ratio of net investment
income (loss) to average
net assets 5.88%(c) 6.04%(c) 5.97% 5.13%(c) 4.98%(c) 5.03%(c) 4.61%(c)
Ratio of expenses to
average net assets* 1.18%(c) 1.06%(c) 0.98% 1.95%(c) 2.12%(c) 1.60%(c) 0.96%(c)
Ratio of net investment
loss to average net
assets* 5.64%(c) 5.90%(c) 5.62% 4.88%(c) 4.68%(c) 4.86%(c) 4.03%(c)
Portfolio turnover 189.82% 94.84% 127.00% 189.82% 94.84% 127.00% 121.00%
</TABLE>
- ---------------
<TABLE>
<C> <S>
* During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the
ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Audited by other Auditors.
(e) Effective June 5, 1995, the Victory Government Bond Portfolio became the Government Bond Fund.
(f) Effective September 26, 1994, the Fund designated the existing shares as Class A Shares and commenced offering
Class B Shares.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
119
<PAGE> 121
THE VICTORY PORTFOLIOS Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT MORTGAGE FUND
------------------------------------------------------------------
SIX MONTHS YEAR ENDED OCTOBER 31,
ENDED APRIL 30, ----------------------------------------------
1996 1995 1994 1993 1992
--------------- -------- -------- -------- -------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.86 $ 10.33 $ 11.36 $ 11.07 $ 10.73
- -----------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income 0.32 0.72 0.68 0.66 0.74
Net realized and unrealized gains(losses)
from investments (0.21) 0.62 (1.02) 0.32 0.34
- -----------------------------------------------------------------------------------------------------------------
Total from Investment Activities 0.11 1.34 (0.34) 0.98 1.08
- -----------------------------------------------------------------------------------------------------------------
Distributions
Net investment income (0.32) (0.73) (0.67) (0.66) (0.74)
Net realized gains -- (0.08) (0.02) (0.03) --
- -----------------------------------------------------------------------------------------------------------------
Total Distributions (0.32) (0.81) (0.69) (0.69) (0.74)
- -----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 10.65 $ 10.86 $ 10.33 $ 11.36 $ 11.07
=================================================================================================================
Total Return (excludes sales charges) 0.99%(a) 13.55% (3.01)% 9.05% 10.34%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 130,436 $136,103 $148,168 $132,738 $73,660
Ratio of expenses to average net assets 0.90%(b) 0.77% 0.76% 0.75% 0.77%
Ratio of net investment income to average net
assets 6.34%(b) 6.81% 6.38% 5.92% 6.82%
Ratio of expenses to average net assets* 0.90%(b) 0.79% 0.96% 0.76%
Ratio of net investment income to average
net assets* 6.33%(b) 6.80% 6.18% 5.92%
Portfolio turnover 68.37% 59.14% 131.63% 50.18% 11.19%
</TABLE>
- ---------------
<TABLE>
<C> <S>
* During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the
ratios would have been as indicated.
(a) Not annualized.
(b) Annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
120
<PAGE> 122
THE VICTORY PORTFOLIOS Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FUND FOR INCOME
------------------------------------------------------------------------------
YEAR ENDED EIGHT MONTHS
SIX MONTHS OCTOBER ENDED YEAR ENDED JANUARY 31,
ENDED APRIL 30, 31, OCTOBER 31, -----------------------------
1996 1995(d) 1994(c) 1994(c) 1993(c) 1992(c)
--------------- ---------- ------------ ------- ------- -------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.93 $ 9.43 $ 10.14 $ 10.57 $ 10.55 $ 10.19
- ------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income 0.42 0.59 0.52 0.80 0.80 0.85
Net realized and unrealized gains
(losses) on investments (0.23) 0.57 (0.71) (0.41) 0.06 0.36
- ------------------------------------------------------------------------------------------------------------------------
Total from Investment Activities 0.19 1.16 (0.19) 0.39 0.86 1.21
- ------------------------------------------------------------------------------------------------------------------------
Distributions
Net investment income (0.42) (0.59) (0.52) (0.80) (0.80) (0.85)
In excess of net investment income -- (0.07) -- -- -- --
Net realized gains -- -- -- (0.02) (0.04) --
- ------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.42) (0.66) (0.52) (0.82) (0.84) (0.85)
- ------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 9.70 $ 9.93 $ 9.43 $ 10.14 $ 10.57 $ 10.55
========================================================================================================================
Total Return (excludes sales charges) 1.95%(a) 12.75% (1.99)%(a) 3.75% 8.45% 12.34%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $22,195 $ 22,756 $ 29,358 $46,632 $55,075 $58,055
Ratio of expenses to average net assets 1.00%(b) 1.17% 1.12%(b) 1.13% 1.12% 0.92%
Ratio of net investment income (loss) to
average net assets 7.24%(b) 7.91% 7.21%(b) 7.65% 7.56% 8.18%
Ratio of expenses to average net assets* 1.61%(b) 1.62% 1.26%(b)
Ratio of net investment loss to average
net assets* 6.63%(b) 7.46% 7.07%(b)
Portfolio turnover 16.09% 80.78% 18.00% 47.00% 23.00% 24.00%
</TABLE>
- ---------------
<TABLE>
<C> <S>
* During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the
ratios would have been as indicated.
(a) Not annualized.
(b) Annualized.
(c) Audited by other auditors.
(d) Effective June 5, 1995, the Victory Fund For Income Portfolio became the Fund For Income.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
121
<PAGE> 123
THE VICTORY PORTFOLIOS Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL MUNICIPAL BOND FUND
----------------------------------------------------------------------------------------------
CLASS A CLASS B
------------------------------------- ------------------------------------------------------
SIX MONTHS SIX MONTHS
SIX MONTHS ENDED SIX MONTHS ENDED SEPTEMBER 26, FEBRUARY 3,
ENDED OCTOBER YEAR ENDED ENDED OCTOBER 1994 TO 1994 TO
APRIL 30, 31, APRIL 30, APRIL 30, 31, APRIL 30, APRIL 30,
1996 1995(e) 1995(d)(f) 1996 1995(e) 1995(a)(d)(f) 1994(a)(d)
----------- ---------- ---------- ----------- ---------- ------------- -----------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 10.06 9.59 $ 9.64 $ 10.07 $ 9.59 $ 9.53 $ 10.00
- --------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income 0.22 0.24 0.44 0.18 0.20 0.28 0.08
Net realized and
unrealized gains
(losses) from
investments -- 0.46 (0.05) 0.03 0.47 0.05 (0.36)
- --------------------------------------------------------------------------------------------------------------------------
Total from Investment
Activities 0.22 0.70 0.39 0.21 0.67 0.33 (0.28)
- --------------------------------------------------------------------------------------------------------------------------
Distributions
Net investment income (0.22) (0.23) (0.44) (0.18) (0.19) (0.27) (0.08)
Net realized gains (0.03) -- -- (0.03) -- -- --
- --------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.25) (0.23) (0.44) (0.21) (0.19) (0.27) (0.08)
- --------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
END OF PERIOD $ 10.03 $ 10.06 $ 9.59 $ 10.07 $10.07 $ 9.59 $ 9.64
- ---------------------------------------------------------------------------------------------------------------------
Total Return (excludes
sales charges) 2.17%(b) 7.39%(b) 4.21% (3.30)%(b) 6.99%(b) 3.54%(b) (2.82)%(b)
RATIOS/SUPPLEMENTAL DATA:
Net Assets,
End of Period (000) $46,799 $ 11,964 $5,118 $ 1,200 $ 456 $ 147 $ 494
Ratio of expenses to
average net assets 0.00%(c) 0.02%(c) 0.20% 0.73%(c) 0.96%(c) (0.05)%(c) 0.65%(c)
Ratio of net investment
income (loss) to average
net assets 4.50%(c) 5.11%(c) 5.01% 3.88%(c) 4.15%(c) 4.35%(c) 3.15%(c)
Ratio of expenses to
average net assets* 1.31%(c) 2.57%(c) 3.95% 2.09%(c) 3.67%(c) 2.63%(c) 26.10%(c)
Ratio of net investment
loss to average net
assets* 3.18%(c) 2.56%(c) 1.26% 2.52%(c) 1.44%(c) 1.67%(c) (22.30)%(c)
Portfolio turnover 44.64% 72.46% 52.00% 44.64% 72.46% 52.00% 13.00%
</TABLE>
- ---------------
<TABLE>
<C> <S>
* During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the
ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Audited by other auditors.
(e) Effective June 5, 1995, the Victory National Municipal Bond Portfolio became the National Municipal Bond Fund.
(f) Effective September 26, 1994, the Fund designated the existing shares as Class A Shares and commenced offering
Class B Shares.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
122
<PAGE> 124
THE VICTORY PORTFOLIOS Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NEW YORK TAX-FREE FUND
-----------------------------------------------------------------------------------------------------
CLASS A CLASS B
-------------------------------------- ------------------------------------------------------------
SIX MONTHS YEAR ENDED JANUARY 1, SIX MONTHS YEAR ENDED SEPTEMBER 26, YEARS ENDED
ENDED OCTOBER 1994 TO ENDED OCTOBER 1994 TO DECEMBER 31,
APRIL 30, 31, OCTOBER 31, APRIL 30, 31, OCTOBER 31, -----------------
1996 1995(e) 1994(d)(f) 1996 1995(e) 1994(d)(f) 1993(d) 1992(d)
----------- ---------- ----------- ----------- ---------- ------------- ------- -------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 12.85 12.39 $ 13.54 12.86 $ 12.39 $ 12.62 $12.76 $12.50
- ----------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment
income 0.34 0.87 0.57 0.28 0.85 0.07 0.70 0.74
Net realized and
unrealized gains
(losses) from
investments (0.24) 0.42 (1.15) (0.23) 0.37 (0.23) 0.84 0.26
- ----------------------------------------------------------------------------------------------------------------------------
Total from
Investment
Activities 0.10 1.29 (0.58) 0.05 1.21 (0.16) 1.54 1.00
- ----------------------------------------------------------------------------------------------------------------------------
Distributions
Net investment
income (0.34) (0.83) (0.57) (0.28) (0.74) (0.07) (0.70) (0.74)
Net realized gains -- -- -- (0.01) -- -- (0.06) --
- ----------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.34) (0.83) (0.57) (0.29) (0.74) (0.07) (0.76) (0.74)
- ----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
END OF PERIOD $ 12.61 12.85 $ 12.39 12.62 $ 12.86 $ 12.39 $13.54 $12.76
============================================================================================================================
Total Return
(excludes sales
charges) 0.79%(b) 10.82% (4.31)%(b) (4.53)%(b) 10.18% (1.25)%(b) 12.34 % 8.26 %
RATIOS/SUPPLEMENTAL
DATA:
Net Assets, End of
Period (000) $13,808 15,374 $17,840 $ 2,289 $ 1,953 $ (g) $28,530 $26,034
Ratio of expenses to
average net assets 0.89%(c) 1.16% 0.91%(c) 1.66%(c) 1.31% 0.52%(c) 0.87 % 0.66 %
Ratio of net
investment income
(loss) to average
net assets 5.22%(c) 5.49% 5.33%(c) 4.45%(c) 3.87% 5.94%(c) 5.28 % 5.89 %
Ratio of expenses to
average
net assets* 1.46%(c) 1.95% 1.25%(c) 2.22%(c) 1.71% 0.86(c) 0.96 % 0.96 %
Ratio of net
investment loss to
average net assets* 4.66%(c) 4.70% 4.99%(c) 3.89%(c) 3.47% 5.60%(c) 5.19 % 5.59 %
Portfolio turnover 0.00% 20.00% 18.00% 0.00% 20.00% 18.00% 12.00 % 14.00 %
</TABLE>
- ---------------
<TABLE>
<C> <S>
* During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the
ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Audited by other auditors.
(e) Effective June 5, 1995, the Victory New York Tax-Free Portfolio became the New York Tax-Free Fund.
(f) Effective September 26, 1994, the Fund designated the existing shares as Class A Shares and commenced offering
Class B Shares.
(g) Amount is less than $1,000.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
123
<PAGE> 125
THE VICTORY PORTFOLIOS Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
OHIO MUNICIPAL BOND FUND
---------------------------------------------------------------
SIX MONTHS YEAR ENDED OCTOBER 31,
ENDED APRIL 30, -------------------------------------------
1996 1995 1994 1993 1992
--------------- ------- ------- ------- -------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.32 $ 10.33 $ 11.52 $ 10.52 $ 10.37
- -----------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income 0.27 0.52 0.49 0.52 0.60
Net realized and unrealized gains (losses)
from investments 0.77 1.00 (0.94) 1.00 0.15
- -----------------------------------------------------------------------------------------------------------------
Total from Investment Activities 1.04 1.52 (0.45) 1.52 0.75
- -----------------------------------------------------------------------------------------------------------------
Distributions
Net investment income 0.27 (0.53) (0.49) (0.52) (0.60)
Net realized gains -- -- (0.25) -- --
- -----------------------------------------------------------------------------------------------------------------
Total Distributions 0.27 (0.53) (0.74) (0.52) (0.60)
- -----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.63 $ 11.32 $ 10.33 $ 11.52 $ 10.52
=================================================================================================================
Total Return (excludes sales charges) 1.20%(a) 15.03% (4.08)% 14.75% 7.34%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $66,982 $60,031 $57,704 $50,676 $17,676
Ratio of expenses to average net assets 0.90%(b) 0.66% 0.51% 0.42% 0.09%
Ratio of net investment income to average net
assets 4.71%(b) 4.78% 4.58% 4.77% 5.76%
Ratio of expenses to average net assets* 1.06%(b) 0.94% 1.09% 0.86% 0.84%
Ratio of net investment income to average net
assets* 4.56%(b) 4.49% 4.01% 4.33% 5.01%
Portfolio turnover 37.60% 124.79% 52.59% 150.76% 47.28%
</TABLE>
- ---------------
<TABLE>
<S> <C>
* During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the
ratios would have been as indicated.
(a) Not annualized.
(b) Annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
124
<PAGE> 126
THE VICTORY PORTFOLIOS Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCED FUND STOCK INDEX FUND
----------------------------------------------------------- --------------------------------------
CLASS A SHARES CLASS B SHARES
-------------- --------------
MARCH 1,
SIX MONTHS 1996 YEAR ENDED DECEMBER 10, SIX MONTHS YEAR ENDED DECEMBER 3,
ENDED THROUGH OCTOBER 1993 TO ENDED OCTOBER 1993 TO
APRIL 30, APRIL 30, 31, OCTOBER 31, APRIL 30, 31, OCTOBER 31,
1996(d) 1996(a)(d) 1995 1994(a) 1996 1995 1994(a)
-------------- -------------- ---------- ------------ ----------- ---------- -----------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 11.01 $11.51 $ 9.62 $ 10.00 $ 12.50 $ 10.18 $ 10.00
- -------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment
income 0.21 0.04 0.41 0.33 0.13 (0.27) 0.20
Net realized and
unrealized gains
(losses) from
investments and
foreign
currencies 0.73 0.14 1.40 (0.39) 1.53 2.31 0.16
- -------------------------------------------------------------------------------------------------------------------------
Total from
Investment
Activities 0.94 0.18 1.81 (0.06) 1.66 2.58 0.36
- -------------------------------------------------------------------------------------------------------------------------
Distributions
Net investment
income (0.21) (0.05) (0.42) (0.32) (0.13) (0.26) (0.18)
Net realized gains (0.07) -- -- -- (0.23) -- --
- -------------------------------------------------------------------------------------------------------------------------
Total
Distributions (0.28) (0.05) (0.42) (0.32) (0.36) (0.26) (0.18)
- -------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END
OF PERIOD $ 11.67 $11.64 $ 11.01 $ 9.62 $ 13.80 $ 12.50 $ 10.18
- ------------------------------------------------------------------------------------------------------------------
Total Return
(excludes sales
charges) 8.38%(b) (3.31)% 19.24% (0.57)%(b) 13.47%(b) 25.72% 3.66%(b)
RATIOS/SUPPLEMENTAL
DATA:
Net Assets, End of
Period (000) $235,476 $ 617 $201,073 $127,285 $ 225,016 $160,822 $ 89,686
Ratio of expenses to
average net assets 1.24%(c) 1.89% 0.98% 0.87%(c) 0.57%(c) 0.55% 0.58%(c)
Ratio of net
investment income
to average net
assets 3.21%(c) 1.75% 4.05% 3.97%(c) 1.93%(c) 2.53% 2.35%(c)
Ratio of expenses to
average
net assets* 1.42%(c) 2.08% 1.36% 1.49%(c) 0.90%(c) 0.87% 1.10%(c)
Ratio of net
investment income
to average net
assets* 3.03%(c) 1.56% 3.67% 3.35%(c) 1.60%(c) 2.21% 1.82%(c)
Portfolio turnover 49.95% 49.95% 69.22% 118.49% 0.92% 11.91% 1.44%
</TABLE>
- ---------------
<TABLE>
<S> <C>
* During the period, certain fees were voluntarily reduced and/or reimbursed. If such voluntary fee reductions
and/or reimbursements had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Effective March 1, 1996, the Fund designated the existing shares as Class A Shares and commenced offering Class B
Shares.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
125
<PAGE> 127
THE VICTORY PORTFOLIOS Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DIVERSIFIED STOCK FUND
----------------------------------------------------------------------------------------
CLASS A SHARES CLASS B SHARES
-------------- --------------
SIX MONTHS MARCH 1, 1996 YEAR ENDED OCTOBER 31,
ENDED APRIL THROUGH APRIL ----------------------------------------------------
30, 1996(e) 30, 1996(a)(e) 1995(d) 1994(d) 1993(d) 1992(d)
-------------- -------------- ---------- ---------- ---------- ----------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD $ 13.62 $ 14.18 $ 12.68 $ 13.39 $ 12.16 $ 11.44
- -------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income 0.10 0.02 0.27 0.25 0.18 0.19
Net realized and unrealized
gains from investments 1.13 0.43 2.33 0.64 1.50 1.11
- -------------------------------------------------------------------------------------------------------------------------
Total from Investment
Activities 1.23 0.45 2.60 0.89 1.68 1.30
- -------------------------------------------------------------------------------------------------------------------------
Distributions
Net investment income (0.10) (0.04) (0.28) (0.23) (0.21) (0.19)
Net realized gains (0.07) -- (1.38) (1.37) (0.24) (0.39)
- -------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.17) (0.04) (1.66) (1.60) (0.45) (0.58)
- -------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 14.68 $ 14.59 $ 13.62 $ 12.68 $ 13.39 $ 12.16
=========================================================================================================================
Total Return (excludes sales
charges) 17.80%(b) (1.24)%(b) 23.54% 7.39% 14.04% 11.57%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period
(000) $497,380 $ 1,021 $409,549 $263,227 $257,405 $227,839
Ratio of expenses to average
net assets 1.02%(c) 1.70%(c) 0.92% 0.89% 0.89% 0.91%
Ratio of net investment income
to average net assets 1.52%(c) (0.40)%(c) 2.11% 2.06% 1.45% 1.63%
Ratio of expenses to average
net assets* 1.04%(c) 1.72%(c) 0.95% 1.10% 0.90%
Ratio of net investment income
to average net assets* 1.50%(c) (0.42)%(c) 2.07% 1.86% 1.43%
Portfolio turnover 50.24% 50.24% 75.05% 103.62% 86.32% 74.83%
</TABLE>
- ---------------
<TABLE>
<C> <S>
* During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the
ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Effective June 5, 1995, the Victory Equity Income Portfolio merged into the Value Fund. Financial highlights for
the periods prior to June 5, 1995 represent the Value Fund.
(e) Effective March 1, 1996, the Fund designated the existing shares as Class A Shares and commenced offering Class B
Shares.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
126
<PAGE> 128
THE VICTORY PORTFOLIOS Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE FUND
--------------------------------------------
YEAR ENDED DECEMBER 3,
SIX MONTHS OCTOBER 1993 TO
ENDED APRIL 30, 31, OCTOBER 31,
1996 1995(c) 1994(a)
--------------- ---------- -----------
(UNAUDITED)
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.87 $ 10.13 $ 10.00
- ---------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income 0.11 0.27 0.21
Net realized and unrealized gains from investments 1.69 1.92 0.11
- ---------------------------------------------------------------------------------------------------------------------
Total from Investment Activities 1.80 2.19 0.32
- ---------------------------------------------------------------------------------------------------------------------
Distributions
Net investment income (0.11) (0.28) (0.19)
Net realized gains (0.34) (0.17) --
- ---------------------------------------------------------------------------------------------------------------------
Total Distributions (0.45) (0.45) (0.19)
- ---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 13.22 $ 11.87 $ 10.13
=====================================================================================================================
Total Return (excludes sales charges) 15.43%(b) 22.28% 3.27%(b)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 346,959 $295,871 $ 188,184
Ratio of expenses to average net assets 1.30%(c) 0.99% 0.92%(c)
Ratio of net investment income to average net assets 1.66%(c) 2.55% 2.32%(c)
Ratio of expenses to average net assets* 1.34%(c) 1.29% 1.48%(c)
Ratio of net investment income to average net assets* 1.62%(c) 2.25% 1.76%(c)
Portfolio turnover 13.95% 23.03% 39.05%
</TABLE>
- ---------------
<TABLE>
<C> <S>
* During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the
ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
127
<PAGE> 129
THE VICTORY PORTFOLIOS Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH FUND SPECIAL VALUE FUND
------------------------------------- -----------------------------------------------------------
DECEMBER CLASS A SHARES CLASS B SHARES DECEMBER
YEAR 3, 1993 -------------- -------------- 3, 1993
ENDED TO SIX MONTHS MARCH 1, 1996 YEAR TO
SIX MONTHS OCTOBER OCTOBER ENDED THROUGH APRIL ENDED OCTOBER
ENDED APRIL 31, 31, APRIL 30, 30, OCTOBER 31,
30, 1996 1995(f) 1994(a)(g) 1996(h) 1996(a)(h) 31, 1995 1994(a)
----------- -------- -------- -------------- -------------- -------- --------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD $ 12.15 $ 10.23 $ 10.00 $ 12.15 $12.89 $ 10.49 $ 10.00
- ---------------------------------------------------------------------------------------------------------------------------
Investment
Activities
Net investment
income (loss) 0.05 0.11 0.10 0.06 0.01 0.15 0.11
Net realized and
unrealized gains
(losses) on
investments 1.44 1.97 0.22 1.57 0.51 1.71 0.48
- ---------------------------------------------------------------------------------------------------------------------------
Total from
Investment
Activities 1.49 2.08 0.32 1.63 0.52 1.86 0.59
- ---------------------------------------------------------------------------------------------------------------------------
Distributions
Net investment
income (0.05) (0.11) (0.09 ) (0.06) (0.03) (0.15) (0.10)
Net realized
gains (0.51) (0.05) -- (0.34) -- (0.05) --
- ---------------------------------------------------------------------------------------------------------------------------
Total
Distributions (0.56) (0.16) (0.09 ) (0.40) (0.03) (0.20) (0.10)
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
END OF PERIOD $ 13.08 $ 12.15 $ 10.23 $ 13.38 $13.38 $ 12.15 $ 10.49
===========================================================================================================================
Total Return
(excludes sales
charges) 12.56%(b) 20.54% 3.22 %(b) 13.67%(b) (1.00)%(b) 18.01% 5.92%(b)
RATIOS/SUPPLEMENTAL
DATA:
Net Assets, End of
Period (000) $ 126,785 $108,253 $66,921 $240,600 $ 87 $194,700 $118,600
Ratio of expenses
to average net
assets 1.28%(c) 1.07% 0.94 %(c) 1.33%(c) 2.05%(c) 1.04% 1.00%(c)
Ratio of net
investment income
to average net
assets 0.75%(c) 1.00% 1.10 %(c) 0.99%(c) (0.14)%(c) 1.35% 1.23%(c)
Ratio of expenses
to average net
assets* 1.40%(c) 1.42% 1.51 %(c) 1.39%(c) 2.07%(c) 1.30% 1.49%(c)
Ratio of net
investment income
(loss) to average
net assets* 0.63%(c) 0.65% 0.52 %(c) 0.93%(c) (0.16)%(c) 1.09% 0.74%(c)
Portfolio turnover 13.37% 107.13% 28.09 % 29.45% 29.45% 38.57% 17.90%
<CAPTION>
SPECIAL GROWTH FUND
-----------------------------------------------------
SIX
MONTHS YEAR JANUARY
ENDED ENDED 11, 1994
SIX MONTHS OCTOBER APRIL TO APRIL
ENDED APRIL 31, 30, 1995 30, 1994
30, 1996 1995 (d)(e) (a)(d)(e)
----------- ------- -------- ---------
(UNAUDITED)
<S> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD $ 11.81 $ 10.54 $ 9.82 $ 10.00
- -------------------------------------------------------------------------
Investment
Activities
Net investment
income (loss) 0.00 0.00 0.02 (0.01)
Net realized and
unrealized gains
(losses) on
investments 2.56 1.27 0.72 (0.17)
- -------------------------------------------------------------------------
Total from
Investment
Activities 2.56 1.27 0.74 (0.18)
- -------------------------------------------------------------------------
Distributions
Net investment
income -- -- (0.02) --
Net realized
gains -- -- -- --
- -------------------------------------------------------------------------
Total
Distributions (0.02)
- -------------------------------------------------------------------------
NET ASSET VALUE,
END OF PERIOD $ 14.37 $ 11.81 $ 10.54 $ 9.82
=========================================================================
Total Return
(excludes sales
charges) 21.68%(b) 12.05%(b) 7.51% (1.80)%(b)
RATIOS/SUPPLEMENTA
DATA:
Net Assets, End of
Period (000) $80,948 $54,335 $ 20,796 $30,867
Ratio of expenses
to average net
assets 1.44%(c) 0.65%(c) 1.04% 0.82%(c)
Ratio of net
investment income
to average net
assets (0.55)%(c) (0.13)%(c) 0.17% (0.27)%(c)
Ratio of expenses
to average net
assets* 1.54%(c) 1.40%(c) 1.35% 1.47%(c)
Ratio of net
investment income
(loss) to average
net assets* (0.66)%(c) (0.88)%(c) (0.14)% (0.38)%(c)
Portfolio turnover 19.02% 132.09% 102.00% 61.00%
</TABLE>
- ---------------
<TABLE>
<S> <C>
* During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratios
would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Audited by other auditors.
(e) Effective June 5, 1995, the Victory Aggressive Growth Portfolio merged into the Special Growth Fund. Financial
highlights for the periods prior to June 5, 1995 represent the Aggressive Growth Portfolio.
(f) Effective June 5, 1995, the Victory Equity Portfolio merged into the Growth Fund, Financial highlights for the periods
prior to June 5, 1995 represent the Growth Fund.
(g) Effective March 17, 1994, the Society Earnings Momentum Fund merged into the Growth Fund. Financial highlights for the
period prior to March 17, 1994 represent the Growth Fund.
(h) Effective March 1, 1996, the Fund designated the existing shares as Class A Shares and commenced offering Class B
Shares.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
128
<PAGE> 130
THE VICTORY PORTFOLIOS Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
OHIO REGIONAL STOCK FUND
-------------------------------------------------------------------------
CLASS B
SHARES
CLASS A SHARES -----------
-------------- MARCH 1,
SIX MONTHS 1996
ENDED THROUGH YEAR ENDED OCTOBER 31,
APRIL 30, APRIL 30, ----------------------------------------
1996(d) 1996(a)(d) 1995 1994 1993 1992
-------------- ----------- ------- ------- ------- -------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.94 $ 16.43 $ 14.56 $ 14.69 $ 12.12 $ 11.15
- -----------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income 0.06 -- 0.17 0.18 0.16 0.20
Net realized and unrealized gains from
investments 2.22 1.13 2.13 0.39 2.63 1.07
- -----------------------------------------------------------------------------------------------------------------------
Total from Investment Activities 2.28 1.13 2.30 0.57 2.79 1.27
- -----------------------------------------------------------------------------------------------------------------------
Distributions
Net investment income (0.06) (0.03) (0.18) (0.17) (0.18) (0.21)
Net realized gains (0.61) -- (0.74) (0.53) (0.04) (0.09)
- -----------------------------------------------------------------------------------------------------------------------
Total Distributions (0.67) (0.03) (0.92) (0.70) (0.22) (0.30)
- -----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 17.55 $ 17.53 $ 15.94 $ 14.56 $ 14.69 $ 12.12
=======================================================================================================================
Total Return (excludes sales charges) 14.71%(b) 1.86%(b) 16.93% 3.96% 23.16% 11.50%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $ 44,165 $ 169 $39,048 $33,965 $34,926 $36,115
Ratio of expenses to average net assets 1.38%(c) 2.12%(c) 1.20% 1.04% 1.04% 1.04%
Ratio of net investment income to average
net assets 0.77%(c) (1.11)%(c) 1.13% 1.27% 1.17% 1.73%
Ratio of expenses to average net assets* 1.40%(c) 2.13%(c) 1.24% 1.27% 1.06%
Ratio of net investment income to average
net assets* 0.75%(c) (1.12)%(c) 1.09% 1.04% 1.15%
Portfolio turnover 3.04% 3.04% 11.44% 14.38% 7.25% 7.56%
</TABLE>
- ---------------
<TABLE>
<S> <C>
* During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the
ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Effective March 1, 1996, the Fund designated the existing shares as Class A Shares and commenced offering Class B
Shares.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
129
<PAGE> 131
THE VICTORY PORTFOLIOS Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL GROWTH FUND
--------------------------------------------------------------------------
CLASS B
CLASS A SHARES SHARES
-------------- -----------
MARCH 1,
SIX MONTHS 1996
ENDED THROUGH YEAR ENDED OCTOBER 31,
APRIL 30, APRIL 30, -----------------------------------------
1996(e) 1996(a)(e) 1995(b) 1994 1993 1992
-------------- ----------- -------- ------- ------- -------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.33 $ 12.79 $ 13.32 $ 11.93 $ 8.93 $ 9.20
- -----------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income (loss) (0.05) -- 0.05 (0.01) (0.03) (0.02)
Net realized and unrealized gains
(losses) from investments and foreign
currencies 1.06 0.54 (0.42) 1.40 3.03 (0.17)
- -----------------------------------------------------------------------------------------------------------------------
Total from Investment Activities 1.01 0.54 (0.37) 1.39 3.00 (0.19)
- -----------------------------------------------------------------------------------------------------------------------
Distributions
Net investment income -- -- -- -- -- (0.01)
Net realized gains -- -- (0.62) -- -- (0.07)
- -----------------------------------------------------------------------------------------------------------------------
Total Distributions -- -- (0.62) -- -- (0.08)
- -----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 13.34 $ 13.33 $ 12.33 $ 13.32 $ 11.93 $ 8.93
=======================================================================================================================
Total Return (excludes sales charges) 8.20%(c) (0.78)%(c) (2.50)% 11.65% 33.59% (2.08)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000) $118,842 $ 64 $106,477 $81,307 $30,629 $11,091
Ratio of expenses to average net assets 1.69%(d) 2.45%(d) 1.49% 1.48% 1.46% 1.56%
Ratio of net investment income (loss) to
average net assets (0.26)%(d) 0.27%(d) 0.75% (0.51)% (0.74)% (0.20)%
Ratio of expenses to average net assets* 1.74%(d) 3.20%(d) 1.65% 1.83% 1.63% 1.72%
Ratio of net investment loss to average
net assets* (0.31)%(d) (0.49)%(d) 0.59% (0.86)% (0.91)% (0.35)%
Portfolio turnover 101.51% 101.51% 68.09% 50.66% 45.43% 91.92%
</TABLE>
- ---------------
<TABLE>
<S> <C>
* During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the
ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Effective June 5, 1995, the Victory Foreign Markets Portfolio merged into the International Growth Fund. Financial
highlights for the periods prior to June 5, 1995 represent the International Growth Portfolio.
(c) Not annualized.
(d) Annualized.
(e) Effective March 1, 1996, the Fund designated the existing shares as Class A Shares and commenced offering Class B
Shares.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
130
<PAGE> 132
By the time a child born in 1993 turns three, higher-income parents will have
spent $32,000 on him or her versus $15,800 for lower-income parents.
Last fall, according to the Investment Company Institute in Washington, D.C.
there were over 5,710 mutual funds. 100 years ago, on May 26, 1896, the
recorded history of the stock market began with the birth of the Dow Jones
Industrial Average. Created by Charles Dow, and published in "The Wall Street
Journal", the average initially consisted of twelve industrial issues. In 1909
there was a mutual fund established in England called the "Scottish Investment
Trust". The fund's primary purpose was to invest in an emerging-market country
called "The Unitel States of America". George Marotta, Hoover Institute,
Stanford University
The Victory Funds
Managed by KeyCorp
1-800-KEY-FUND
VF/SAR-RP (6/96)
