SEMIANNUAL REPORT
APRIL 30,
1998
(LOGO)
Victory Funds(R)
TABLE OF CONTENTS
Shareholder Letter 2
Investment Review and Outlook 3
Financial Statements
- -----------------------------------------------------
Schedules of Investments 7
Statements of Assets and Liabilities 99
Statements of Operations 106
Statements of Changes in Net Assets 113
Statements of Cash Flows 123
Notes to Financial Statements 124
Financial Highlights 133
NOT FDIC INSURED
Shares of the Victory Funds are not deposits
or other obligations of, or guaranteed by,
any KeyCorp bank, Key Asset Management
Inc., or their affiliates, and are subject to
investment risks, including possible loss
of the principal amount invested.
Key Asset Management Inc. (KAM) a subsidiary of KeyCorp, is the
investment adviser to the Victory Funds. The Victory Funds are sponsored and
distributed by BISYS Fund Services, which is not affiliated with KeyCorp or
its subsidiaries. KAM receives a fee for its services from the Victory Funds.
This report is not authorized for distribution to prospective investors
unless preceded or accompanied by a current prospectus for the Victory Funds.
Letter to our Shareholders
Welcome to the April 30, 1998 semiannual report of the Victory Funds.
Our fund selection and shareholder base have increased as a result of the
merger of the Key Funds family with the Victory Funds group. We are happy to
have this opportunity to welcome all our new shareholders, as well as to
share information on your Funds' performance. The continued onward surge of
the US stock markets has been matched by investor sentiment which is becoming
increasingly focused on the long term. Highlighted below are some product
offerings which are especially suitable for this long-term orientation.
If you are receiving a retirement plan distribution from your employer,
you'll want to keep that money working for you as long as possible so as to
have the potential to achieve your retirement savings goals without
interruption. One of the easiest ways to accomplish this goal is through the
Victory Funds IRA. And now, with recent tax legislation Victory is pleased to
offer you a further service enhancement in the form of the Roth IRA. The Roth
IRA will be offered in addition to the traditional IRA. For further
information on these tax advantaged investment plans, please call
1-800-539-3863.
The Victory LifeChoice Funds, the Victory Convertible Securities Fund and the
Victory Federal Money Market Fund are new additions to the Victory family.
The LifeChoice Funds are asset allocation funds which invest in other mutual
funds; there are three such funds for investors with different investment
objectives and levels of risk orientations. LifeChoice Funds invest in funds
not affiliated with Victory in addition to Victory funds. This expanded scope
for diversification provides added flexibility in implementing asset
allocation strategies that best fit individual investment needs and risk
tolerance levels. The Victory Convertible Securities Fund, which offers the
capital appreciation potential of stock funds while also providing relative
safety and income, can be a valuable diversification tool for many investors.
As you can see, the Victory family offers investors a wide range of
investment options. We are happy that you have chosen Victory and welcome
your comments on this report.
Thank you
/s/ Leigh A. Wilson
Leigh A. Wilson
President
The Victory Funds
For more information about the Victory Funds, including charges and
expenses, request a prospectus by calling 1-800-KEY-FUND(R)
(1-800-539-3863). Please read the prospectus carefully before
investing or sending money.
Investment Review and Outlook
Something remarkable occurred in the domestic equity market in the first
quarter of 1998. Not only did prices soar, with most benchmarks closing at or
near record highs, but by the end of the period, stocks had acquired an air
of invincibility. The potent combination of a sturdy economy and a seemingly
never-ending supply of money inflated bullish sentiment, overwhelming
concerns about Asia and overcoming bloated valuations. Almost overnight, all
news became good news, every glass that had been half empty was suddenly half
full, and potential problems turned into potential opportunities. In a world
of uncertainty, stocks were a sure thing.
Such optimism was not constrained by national borders. While the
double-digit advance posted by U.S. stocks ranked among their best quarterly
gains on record, several European bourses delivered even stronger returns,
and a number of Asian markets staged impressive come-backs after early
stumbles. Taken together, the value of the world's stock markets rose by some
$2 trillion in the first three months of the year.
The bond market was considerably less effervescent. The prospect of a
substantial Federal budget surplus in the current fiscal year and the steep
drop in commodity prices (most notably oil) was not enough to offset the fear
that the economy was growing too fast. As a result, long-term interest rates
fluctuated in a narrow band during the quarter, ending the period at roughly
the same level as they began.
How long can such euphoric conditions persist? Though emotion and
adrenaline may sustain the market's momentum in the near-term, I think that
eroding fundamentals and extreme valuations will weigh against stocks
longer-term, leading to below-average returns over the next several years.
Bonds are more attractive, offering high real rates and the potential for
modest capital appreciation. The following paragraphs explore these issues in
greater depth.
The Fountain of Economic Youth
Judging by recent statistics, you would never guess that the domestic
economic expansion has just passed its seventh anniversary. Despite its
advanced age, the economy is spry and establishing new records every month.
Nowhere is this more evident than in the employment numbers. More new jobs
have been created since November than in any six-month period in 14 years,
which has brought the unemployment rate down to just 4.3%, the lowest in a
quarter-century. Over 64% of all Americans have jobs, the highest level of
employment on record. According to one recent survey, just one out of eight
respondents consider jobs "hard to get," the lowest reading ever. The labor
market is so tight that managers throughout the country and across a broad
range of businesses are reporting difficulty in finding qualified help to
fill positions.
As a consequence, wages are rising. Average hourly earnings are more
than 4% higher than they were a year ago, the greatest rate of annual change
in nine years. Disposable personal income has risen at an even faster pace,
supporting strong growth in personal consumption expenditures. Retail sales
have been particularly healthy, as the mild weather has led to increased
store traffic. Demand has been enhanced by a sharp rise in mortgage
refinancing activity, which has enabled many consumers to lower their monthly
payments and thereby to increase their discretionary cash flow.
That jump in refinancing was sparked by the lowest mortgage interest
rates in four years, which has concurrently fueled one of the strongest
housing markets in recent memory. New homes are selling at the fastest pace
in ten years, and existing home sales are at the highest level since records
started being kept. Responding to this surge, new construction has picked up
substantially, with over 1.5 million units started in April. Permit activity
has accelerated, foreshadowing further gains ahead.
As unusual as this performance is for an economy so long in the tooth,
the virtual lack of inflation is even more noteworthy, and is attributable to
an extraordinary confluence of circumstances. For several years, an abundance
of global capacity has kept prices in check, with companies fighting for
valuable market share. That competition has intensified in the past few
months, as the collapse of Asian currencies and the strength of the dollar
vis-a-vis other major currencies has produced a sharp decline in import
prices, most notably oil. Since imports account for roughly a third of all
goods sold in this country, this retreat is exerting a powerful moderating
force on overall inflation.
With jobs plentiful, inflation low and real incomes rising, it is no
wonder that consumer confidence is at an all-time high. The stock market is
basking in this warm glow, and is helping to reinforce it as consumers watch
their nest eggs grow. All is well.
If the Earthquake Doesn't Get You...
Or is it? As strong as the economy is now, hints of a slowdown are
accumulating. The most direct threat is the ballooning trade deficit. Imports
have surged while exports have flattened, inflating the trade gap to $13.0
billion in March, the most recent figure available. There are less obvious
signs as well.
While the consumer is in good shape, the industrial side of the economy
has been somewhat less robust. Manufacturing employment fell in each of the
last two months. According to the monthly survey conducted by the National
Association of Purchasing Managers (NAPM), business is well below fourth
quarter 1997 levels. The NAPM measure of vendor performance, which is closely
watched by the Federal Reserve for signs of potentially inflationary
bottlenecks, is flat, and Business Week's index of industrial production has
fallen in recent weeks.
One way or another, all of these issues can trace their roots to Asia.
Though many Asian stock markets rallied in the first-quarter on hopes that
the worst is over, the magnitude of the region's economic woes is only now
becoming apparent. Ed Hyman of ISI Group estimates that Pacific Rim countries
are contracting at an annual rate of 30%, a dramatic reversal of fortune for
a region that had accounted for the lion's share of the world's economic
growth in recent years. Layoffs are mounting, and inflation is a serious
problem, running in the triple digits in some countries. Each day brings new
headlines of economic distress, threatening the political stability of the
region.
Most troubling is the malaise that plagues Japan, the world's second
largest economy. Real GDP is receding, and corporate profits are declining at
a rate of 15%-20%. Scandal continues to rock the nation's financial
infrastructure, leaving a growing list of resignations (and even suicides) in
its wake. Relations with Washington are strained, though U.S. badgering may
quiet down following the proposal of a (Y)16 trillion ($124 billion) stimulus
package on March 26th. With its economy in a tailspin, Japan is in no
position to help its Asian neighbors, and any further drop in the yen could
instead worsen their prospects.
...the Tsunami Afterwards Might...
Although the U.S. economy has thus far avoided any serious fallout from the
Asian crisis (and in fact may have benefited from the resultant downward
pressure on prices), it is only a matter of time before more meaningful
reverberations are felt, given the severity of the contraction in the Far
East. After exports, corporate profits are likely to be among the first
victims. The combination of diminished pricing power and rising labor costs
threatens to pinch operating margins, neutralizing the positive influence of
lower commodity costs and productivity enhancements. Lower interest expense
will boost the bottom line a little, but earnings are not likely to grow by
much more than 5%-6% in 1998, with the first half a little stronger than the
second half. Companies with significant exposure to Asia will be lucky to
register any growth at all, and several (including Motorola, Compaq and Nike)
have warned analysts to lower their projections for the year.
Since the beginning of the year, consensus forecasts for first half S&P
500 profits have declined sharply, from 10%-12% growth to just 2%-3%.
Frankly, it appears that these estimate revisions overshot the mark, and many
companies will once again report "positive surprises" as a result. Full-year
1998 projections have not been adjusted by as much, indicating that analysts
expect a fairly vigorous profit rebound in the second half. This strikes me
as too optimistic, setting the stage for disappointments and more downward
revisions later in the year.
Slender profit growth has negative implications for capital spending.
Intel's recent decision to postpone the construction of a plant in Texas,
announced just a couple of weeks after warning of a first quarter revenue
shortfall, may be just the tip of the iceberg. Employment growth is likely to
slow, as managers react to tighter margins by trimming head counts. Thousands
of pink slips have been handed out in recent weeks, as the number of
corporate restructuring announcements has mounted from companies as diverse
as Boeing, Chase Manhattan and Micron Technology. Weighing the evidence, I
think real economic activity will slow modestly over the next several
quarters, to a pace of 2.5%-3.0% growth by year-end 1998.
Valuation Matters (Eventually)
The stock market has shaken off a lot of potentially bad news in the past
three months, buoyed by a steady stream of new cash. Money flows are
traditionally strong in the first quarter, as investors make annual
contributions to retirement plans, adjust asset allocation and buy stocks
with year-end bonuses. This year was no exception, judging by the pace of
mutual fund sales. Corporations were also a strong source of demand, buying
both their own stock and others'. Share repurchase announcements totaled $26
billion in the first two months of the year, a figure dwarfed by the more
than $70 billion worth of cash acquisitions (as opposed to share-for-share
mergers) announced in the same period. Finally, foreign investors were active
buyers of U.S. shares, continuing the trend of the past two years.
Some have argued that demand for stocks will only intensify. The Baby
Boom generation is entering its peak savings years, and may be more motivated
to save and invest than its predecessors, given the fear that the Social
Security system may not be around when Boomers start to retire in 10-15
years. Although the percentage of personal financial assets tied up in
equities is the highest in over 40 years, there is still over $1.5 trillion
of cash and equivalents on household balance sheets, which could potentially
seek the higher returns that stocks have historically offered. If only a
fraction of that money made its way into the market, it could send equity
prices soaring.
There is one significant hitch: by every measure I can think of,
valuations are already at historic extremes, at least for large
capitalization blue chip stocks. According to various Wall Street dividend
discount models, the S&P 500 is 20%-30% overvalued, a level rarely surpassed.
The index is currently trading for 23 times estimated 1998 earnings, or over
2.7 times its long-term earnings growth rate. It is selling for roughly 2.3
times sales, 15 times cash flow and over six times book value. Its dividend
yield is just 1.5%, or roughly 30% of the 90-day Treasury bill rate. For each
of these measures to return to median levels, the index would have to drop by
30%-50%.
By itself, valuation is not a particularly useful tool to predict
near-term returns. Just because stocks have never been this rich does not
mean that they cannot get even more expensive. Moreover, an examination of
historical data reveals that holding stocks for 10-15 years has rarely
produced negative returns, regardless of valuation. On the other hand, that
same historical data shows that when valuations are in the upper quartile of
their range, equity returns in the subsequent 10-15 years have rarely
approached the hundred-year average of 10%, let alone exceeded it.
My Advice: Reduce Your Risk
Simply stated, I believe there is more risk than opportunity in the stock
market today, and over the next several years investors will be inadequately
compensated for assuming that risk. This is by no means a call to abandon
stocks, since they will likely retain their preeminence among various asset
classes over the long haul. On the other hand, it makes sense to me to take
advantage of the market's current strength to shore up your portfolio by
seeking to reduce its overall level of risk.
This can be accomplished in two fashions: stock selection and asset
allocation. Although the market as a whole is fully valued, there are still
some stocks that offer favorable risk/reward profiles. An emphasis on
maximizing total return leads me to higher-yielding stocks, such as real
estate investment trusts (REITs) and selected utilities. Bowing to my
contrarian urges, I find some of the energy stocks to be very appealing and
exceptionally inexpensive (as long as oil prices stay in the mid-teens or
higher). Companies engaged in natural gas exploration and production stand
out as the cheapest of all energy-related groups. I am also intrigued by some
of the other commodity producers, if only because they are so completely out
of favor on Wall Street due to the tough pricing environment.
Among faster growing companies, I think biotechnology stocks offer
considerable long-term appeal, as more biotech firms transition from
unprofitable research & development laboratories to highly profitable
pharmaceutical companies. The rest of the technology sector poses a challenge
to the value investor: the healthy companies are not cheap, and the cheap
companies are not healthy. The outlook for software and services is brighter
than that for the hardware companies, but there are a few stories among the
latter group that deserve consideration. Finally, I think that equity
portfolios should have some exposure to consumer cyclical stocks such as
homebuilders and retailers, acknowledging consumers' financial health and
buoyant sentiment.
Small and mid-sized stocks are considerably more attractive than their
large-cap counterparts. Small and mid-cap price/earnings multiples are
somewhat lower, and their expected earnings growth is substantially greater.
Moreover, smaller companies tend to have less international exposure, so
their profits are less likely to disappoint because of the problems in Asia.
Though they tend to be overlooked by foreign investors, and their share
prices are more volatile, small and mid-cap stocks offer much greater
long-term potential. After four years of relative underperformance, I think
they are ready to shine.
Equity investors should also consider increasing their exposure to
convertible securities and international stocks. Convertibles offer
substantially greater income than common stocks, and typically provide
greater downside protection in the event of a stock market correction.
Looking beyond our shores, Europe is in considerably better shape than Asia,
but its stock markets are pretty fully valued after the recent run-up. For
long-term investors with a tolerance for volatility, Japan and Asia's
emerging markets are worth investigating.
Risk-adjusted potential returns favor bonds over blue chip stocks, and
investors should consider adding to their bond positions. Stocks have
outperformed bonds by such a large margin in recent quarters that balanced
accounts should make sure that equity exposure has not gotten too high.
Within bond portfolios, the middle of the yield curve is the most attractive,
though investors should add some longer-duration securities if rates move
back over 6%.
Above all, take careful measure of your tolerance for risk. Most
households have never had more exposure to equities. As long as the market
turns a blind eye (or ear) to the potential problems ahead, more lucrative
thrills may be in store. However, with stocks as expensive as they are, the
possibility of some nasty spills cannot be ignored. Be prepared.
April 30, 1998
/s/ Charles G. Crane
Charles G. Crane, Chief Market Strategist
Key Asset Management Inc.
<TABLE>
THE VICTORY PORTFOLIOS Schedule of Investments
U.S. Government Obligations Fund April 30, 1998
(Amounts in Thousands, Except Shares) (Unaudited)
<CAPTION>
Shares or
Principal Amortized
Security Description Amount Cost
<S> <C> <C>
Repurchase Agreements (77.4%)
Barclays de Zoete Wedd
Securities, Inc.,
5.52%, 5/1/98,
(Collateralized by $81,715
U.S. Treasury Notes, 5.63%,
4/30/00, market value--$81,600) 80,000 $ 80,000
Chase Securities, Inc.,
5.50% 5/1/98,
(Collateralized by $77,559
various U.S. Treasury Notes,
5.50%-7.87%, 9/30/02-2/15/07,
market value--$81,601) 80,000 80,000
Deutsche Morgan Grenfell,
5.48%, 5/1/98,
(Collateralized by $76,133
various U.S. Government Securities,
0.00%-5.58%, 6/4/98-3/31/03,
market value--$76,501) 75,000 75,000
Donaldson-Lufkin Jenrette Securities Corp.,
5.52%, 5/1/98,
(Collateralized by $550,978
various U.S. Government Securities,
0.00%-12.50%, 6/18/98-11/15/26,
market value--$484,500) 475,000 475,000
Goldman Sachs Group L.P.,
5.52%, 5/1/98,
(Collateralized by $455,767
U.S. Government Securities,
5.50%-7.75%, 12/31/99-3/31/00,
market value--$484,500) 475,000 475,000
Harris-Nesbitt Burns Securities,
5.53%, 5/1/98,
(Collateralized by $210,852
various U.S. Government Securities,
0.00%, 8/15/99-2/15/23,
market value--$81,601) 80,000 80,000
Lehman Brothers, Inc.,
5.52%, 5/1/98,
(Collateralized by $84,575
U.S. Government Securities,
5.63%, 4/30/00,
market value--$84,443) 82,786 82,786
NationsBanc Capital Markets, Inc.,
5.53%, 5/1/98,
(Collateralized by $93,974
various U.S.Government Securities,
0.00%-7.18%, 5/15/98-4/6/03,
market value--$81,601) 80,000 80,000
Nomura Securities International, Inc.,
5.53%, 5/1/98,
(Collateralized by $219,364
various U.S. Government Securities,
0.00%-12.00%, 8/15/11-4/15/28
market value--$81,601) 80,000 80,000
Total Repurchase Agreements
(Amortized Cost $1,507,786) 1,507,786
U.S. Treasury Notes (22.7%)
6.13%, 5/15/98 105,000 105,017
6.25%, 6/30/98 25,000 25,014
6.25%, 7/31/98 60,000 60,086
6.13%, 8/31/98 25,000 25,035
5.63%, 11/30/98 25,000 25,012
5.75%, 12/31/98 50,000 50,080
6.25%, 3/31/99 100,000 100,659
6.38%, 4/30/99 50,000 50,410
Total U.S. Treasury Notes
(Amortized Cost $441,313) 441,313
Total Investments
(Amortized Cost $1,949,099) <F1>--100.1% 1,949,099
Liabilities in excess of other assets (0.1)% (1,914)
TOTAL NET ASSETS--100.0% $1,947,185
<FN>
<F1> Cost and value for federal income tax and financial reporting purposes are the same.
</FN>
See notes to financial statements.
</TABLE>
<TABLE>
THE VICTORY PORTFOLIOS Schedule of Investments
Prime Obligations Fund April 30, 1998
(Amounts in Thousands, Except Shares) (Unaudited)
<CAPTION>
Shares or
Principal Amortized
Security Description Amount Cost
<S> <C> <C>
Certificates of Deposit (11.0%)
Bank Nova Scotia,
5.83%, 10/2/98 5,000 $ 5,002
Bankers Trust New York,
5.47%<F2>, 5/5/98 10,000 9,999
Bankers Trust New York,
5.98%, 8/12/98 14,000 14,006
Banque National de Paris,
5.62%, 9/23/98 5,000 5,000
Bayerische Landesbank,
5.58%, 6/30/98 30,000 30,001
Canadian Imperial
Bank of Commerce,
5.74%, 4/1/99 10,000 9,995
Deutschbank,
5.96%, 8/17/98 3,500 3,500
Deutschbank,
5.70%, 3/30/99 10,000 9,994
Morgan Guaranty Trust,
5.77%, 6/16/98 10,000 10,000
Morgan Guaranty Trust,
5.87%, 8/6/98 5,000 5,000
Societe Generale,
5.42%<F2>, 5/1/98 4,000 4,000
Societe Generale,
5.42%<F2>, 5/1/98 5,000 5,000
Total Certificates of Deposit
(Amortized Cost $111,497) 111,497
Commercial Paper (47.4%)
Abbey National,
5.52%, 5/18/98 10,000 9,974
Arizona Educational
Loan Marketing Corp.,
5.53%, 5/15/98 15,000 14,968
Arizona Higher Education
Loan Program,
5.53%, 5/22/98,
LOC Mellon Bank 5,350 5,333
Asset Securilization Capital Corp.,
5.51%, 5/6/98 25,000 24,981
Australian Wheat Board,
5.42%, 7/8/98 6,900 6,829
AVCO Financial Services,
5.48%, 6/10/98 5,000 4,970
AVCO Financial Services,
5.50%, 5/11/98 10,000 9,985
AVCO Financial Services,
5.48%, 6/22/98 10,000 9,921
Bell South Telecommunications,
5.50%, 5/14/98 25,000 24,950
Beta Finance,
5.45%, 5/15/98 5,000 4,989
Diageo Capital PLC,
5.52%, 6/2/98 20,000 19,902
Diageo Capital PLC,
5.49%, 8/31/98 10,000 9,815
Eiger Capital Corp.,
5.52%, 5/14/98 6,000 5,988
Fleet Funding,
5.50%, 6/1/98 17,000 16,919
General Electric Capital Corp.,
5.46%, 7/15/98 20,000 19,771
Goldman Sachs Group, Inc.,
5.68%, 5/14/98 10,000 9,979
Goldman Sachs Group, Inc.,
5.52%, 5/15/98 15,000 14,968
Great Lakes Chemical,
5.50%, 5/19/98 15,000 14,959
Louis Dreyfus,
5.54%, 4/11/98 20,000 19,969
McCormick & Co.,
5.51%, 5/5/98 20,000 19,988
McCormick & Co.,
5.43%, 8/10/98 10,000 9,848
McCormick & Co.,
5.43%, 10/13/98 5,000 4,876
Mont Blanc Capital Corp.,
5.53%, 5/19/98 30,634 30,549
Nalco Chemical,
5.52%, 5/26/98 19,000 18,927
Nalco Chemical,
5.51%, 6/19/98 10,000 9,925
Pemex Capital, Inc.,
5.50%, 6/18/98,
LOC Societe Generale 10,000 9,927
Pemex Capital, Inc.,
5.50%, 6/18/98,
LOC Societe Generale 10,000 9,926
Pitney Bowes,
6.25%, 6/1/98 1,750 1,751
Redwood Receivables Corp.,
5.53%, 5/14/98 9,000 8,982
Redwood Receivables Corp.,
5.55%, 5/15/98 20,000 19,957
Redwood Receivables Corp.,
5.53%, 5/20/98 10,128 10,098
Saloman Smith Barney,
5.52%, 6/1/98 25,000 24,881
Salomon Smith Barney,
5.52%, 7/13/98 10,000 9,888
Southern California Edison,
5.48%, 6/16/98 5,000 4,965
Toshiba America,
5.55%, 5/19/98 10,000 9,972
Toshiba America,
5.57%, 6/29/98 5,600 5,549
Unibanco,
5.51%, 6/11/98,
LOC Westduetsche Landsbank 10,000 9,937
Weyerhaueser,
5.59%, 5/4/98 10,000 9,995
Total Commercial Paper
(Amortized Cost $479,111) 479,111
Corporate Bonds (34.8%)
Associates Corp.,
7.25%, 5/15/98 4,000 4,002
Astro Aluminum,
5.69%<F2>, 5/7/98<F3>,
LOC National City Bank 1,640 1,640
AVCO Financial Services,
5.50%, 5/1/98 2,000 2,000
Baylis Group Partnership,
5.75%<F2>, 5/6/98<F3>,
LOC Societe Generale 2,980 2,980
Bear Stearns Co.,
6.23%<F2>, 5/15/98 5,000 5,001
Bell South Telecommunications,
5.25%, 6/8/98, MTN 5,000 4,996
Beta Finance,
5.69%<F2>, 5/5/98 10,000 10,000
Carelife, Inc.,
5.69%<F2>, 5/7/98<F3>,
LOC National City Bank 2,525 2,525
CIT Group Holdings,
6.35%, 7/31/98, MTN 3,100 3,104
CIT Group Holdings,
5.88%, 12/15/98, MTN 8,800 8,798
Cleveland Steel Container,
5.69%<F2>, 5/7/98<F3>,
LOC National City Bank 1,325 1,325
Cloquet Minnesota Industrial
Facilities, Potlach Corp.,
5.70%<F2>, 5/6/98,
LOC Credit Swiss 2,900 2,900
Comerica Bank,
5.61%<F2>, 5/5/98<F3> 10,000 9,998
Cuyahoga County Taxable EDR,
Gateway Arena Project,
Series B,
5.67%<F2>, 5/6/98<F3>,
LOC Canadian Imperial
Bank of Commerce 7,500 7,500
Dome Corp.,
5.70%<F2>, 5/6/98<F3>,
LOC Societe Generale 2,820 2,820
Exxon Capital Corp.,
8.00%, 10/2/98, MTN 1,379 1,390
F.C. Bellevue, Inc.,
5.69%<F2>, 5/7/98<F3>,
LOC National City Bank 2,500 2,500
FCC National Bank,
5.70%, 1/7/99 10,000 9,998
Ford Motor Credit Corp.,
9.25%, 6/15/98 1,000 1,004
Ford Motor Credit Corp.,
5.63%, 12/15/98 4,020 4,017
Ford Motor Credit Corp.,
8.45%, 12/30/98, MTN 5,000 5,081
Ford Motor Credit Corp.,
5.90%<F2>, 5/1/98, MTN 5,000 5,000
General American Life Insurance,
5.89%<F2>, 5/1/98 45,000 45,000
General Electric Capital Corp.,
6.13%, 9/18/98, MTN 8,000 8,005
General Motors Acceptance Corp.,
6.15%, 5/11/98, MTN 1,000 1,000
General Motors Acceptance Corp.,
7.13%, 5/11/98, MTN 1,000 1,000
General Motors Acceptance Corp.,
6.50%, 6/4/98, MTN 2,000 2,001
General Motors Acceptance Corp.,
6.38%, 7/2/98, MTN 2,000 2,001
General Motors Acceptance Corp.,
6.25%, 9/8/98, MTN 3,000 3,003
General Motors Acceptance Corp.,
6.03%, 10/7/98, MTN 5,000 4,998
General Motors Acceptance Corp.,
5.95%, 12/30/98, MTN 5,000 5,011
General Motors Acceptance Corp.,
6.00%, 12/30/98, MTN 9,980 10,005
General Motors Acceptance Corp.,
8.38%, 2/3/99, MTN 5,000 5,091
General Motors Acceptance Corp.,
6.50%, 4/16/99, MTN 5,000 5,037
GMH Enterprises,
5.69%<F2>, 5/7/98<F3>,
LOC National City Bank 1,675 1,675
Goldman Sachs,
9.37%, 7/20/98, MTN 3,000 3,022
Highland Road Partners,
5.69%<F2>, 5/7/98<F3>,
LOC National City Bank 1,000 1,000
Industrial Developement
Authority of Bedford, Va.,
5.68%, 6/12/98,
LOC Society Generale 6,000 6,000
John Deere Capital Corp.,
5.85%, 10/28/98, MTN 10,000 9,997
John Deere Capital Corp.,
6.13%, 2/5/99, MTN 4,000 4,011
Lehman Brothers Holding Inc.,
5.75%<F2>, 5/13/98, MTN 10,000 10,000
Lehman Brothers Holding, Inc.,
5.74%<F2>, 5/5/98, MTN 20,000 19,994
MCMC Pob LII,
5.69%<F2>, 5/7/98<F3>,
LOC National City Bank 1,745 1,745
Merrill Lynch,
6.60%<F2>,6/24/98 3,000 3,000
Merrill Lynch,
5.47%, 6/10/98, MTN 5,000 5,000
Merrill Lynch,
5.71%<F2>, 8/13/98, MTN 3,000 3,001
Miami Valley,
5.69%<F2>, 5/7/98<F3>, MTN 2,000 2,000
Morgan Stanley Dean Witter,
5.79%<F2>, 6/15/98<F3>, MTN 8,000 8,000
Nationsbank,
5.83%<F2>, 11/27/97<F3>, MTN 4,000 4,000
Nestle Holding,
5.88%, 6/19/98, MTN 1,170 1,170
Olympic Steel Corp.,
5.67%<F2>, 5/7/98<F3>,
LOC Fifth Third Bank 3,040 3,040
PepsiCo, Inc.,
5.80%, 8/31/98, MTN 5,000 4,996
Philip Morris,
9.00%, 5/15/98, MTN 2,500 2,503
Philip Morris,
8.70%, 6/1/98, MTN 2,000 2,005
PNC Bank,
5.40%<F2>, 5/1/98 5,000 5,000
Reichert Limited Partnership,
5.69%<F2>, 4/15/11<F3>,
LOC National City Bank 3,060 3,060
Richfield Technology Associates,
5.69%<F2>, 5/7/98,
LOC Star Bank 4,500 4,500
RKS LLC Health Care,
5.70%<F2>, 5/1/26<F3>,
LOC AmSouth Bank 9,700 9,700
Salomon Brothers, Inc.,
7.43%, 12/30/98, MTN 2,000 2,023
Salomon Brothers, Inc.,
8.69%, 3/1/99, MTN 4,000 4,101
Salomon Brothers, Inc.,
6.70%, 12/1/98 4,530 4,551
Schipper Enterprises,
5.69%<F2>, 5/7/98<F3>,
LOC Bank One 2,965 2,965
Sea River Maritime,
5.65%, 5/1/98,
Guaranteed by Exxon 14,300 14,300
SGS Tool,
5.69%<F2>, 5/7/98,
LOC National City 2,040 2,040
Southwestern Ohio Steel,
5.69%<F2>, 5/7/98,
LOC Star Bank 5,000 5,000
Tell-Schipper Properties, Inc.,
5.69%<F2>, 5/7/98<F3>,
LOC Bank One 1,320 1,320
Toronto Dominion Holdings,
9.00%, 6/15/98 5,000 5,019
Zanetos Partnership Project,
5.69%<F2>, 5/7/98<F3>,
LOC National City Bank 1,775 1,775
Total Corporate Bonds
(Amortized Cost $352,244) 352,244
U.S. Government Agencies (2.8%)
Federal Home Loan Bank (1.5%):
5.39%<F2>, 7/30/98<F3> 5,000 4,999
5.72%, 4/23/99,
Callable 7/23/98 @ 100 10,000 10,000
14,999
Federal National Mortgage
Assoc. (1.3%):
5.39%, 8/5/98,
Callable 6/22/98 @ 100 3,000 2,996
5.40%, 12/30/98,
Callable 6/22/98 @ 100 10,000 9,973
12,969
Total U.S. Government Agencies
(Amortized Cost $27,968) 27,968
Repurchase Agreements (3.9%)
Lehman Brothers, Inc.,
5.52%, 5/1/98,
(Collateralized by $20,435
U.S. Treasury Note,
5.63%, 4/30/00,
market value--$20,403) 20,000 20,000
Paine Weber,
5.52%, 5/1/98,
(Collateralized by $19,755,
U.S. Treasury Note,
5.75%, 4/30/03,
market value--$19,783) 19,392 19,392
Total Repurchase Agreements
(Amortized Cost $39,392) 39,392
Total Investments
(Amortized Cost $1,010,212) <F1>--99.9% 1,010,212
Other assets in excess of liabilities 0.1% 1,346
TOTAL NET ASSETS--100.0% $1,011,558
<FN>
<F1> Cost and value for federal income tax and financial reporting purposes are the same.
<F2> Variable rate securities having liquidity agreements. The interest rate, which will change periodically, is based
upon an index of market interest rates. The rate reflected on the Schedule of Portfolio Investments is the rate
in effect at April 30, 1998. The date reflects the next rate change date.
<F3> Put and demand features exist allowing the Fund to require repurchase of the investment within variable time
periods less than one year.
EDR--Economic Development Revenue
LOC--Letter of Credit
MTN--Medium Term Note
</FN>
See notes to financial statements.
</TABLE>
<TABLE>
THE VICTORY PORTFOLIOS Schedule of Investments
Financial Reserves Fund April 30, 1998
(Amounts in Thousands, Except Shares) (Unaudited)
<CAPTION>
Shares or
Principal Amortized
Security Description Amount Cost
<S> <C> <C>
Certificates of Deposit (10.1%)
Bankers Trust New York,
5.47%<F1>, 5/5/98 10,000 $ 9,999
Bankers Trust New York,
5.91%, 8/7/98 4,000 3,999
Bankers Trust New York,
5.98%, 8/12/98 14,000 14,007
Canadian Imperial
Bank of Commerce,
5.74%, 4/1/99 10,000 9,995
Deutschbank,
5.96%, 8/17/98 4,000 4,000
Deutschbank,
5.70%, 3/30/99 5,000 4,997
Morgan Guaranty Trust,
5.77%, 6/16/98 10,000 10,000
Societe Generale,
5.43%<F1>, 5/1/98 6,000 6,000
Societe Generale,
5.42%<F1>, 5/1/98 7,000 6,999
Societe Generale,
5.42%<F1>, 5/1/98 5,000 4,999
Total Certificates of Deposit
(Amortized Cost $74,995) 74,995
Commercial Paper (25.8%)
Asset Securilization Capital Corp.,
5.51%, 5/6/98 20,000 19,984
Australian Wheat Board,
5.50%, 6/4/98 4,889 4,864
AVCO Financial Services,
5.48%, 6/10/98 4,000 3,976
AVCO Financial Services,
5.48%, 6/22/98 10,000 9,921
Beta Finance,
5.45%, 5/15/98 5,000 4,989
Delaware Funding,
5.51, 6/4/98 5,030 5,006
Diageo Capital PLC,
5.49%, 8/31/98 20,000 19,631
Dresdner Finance,
5.52%, 5/18/98 10,000 9,974
Fuji Photo Finance,
5.53%, 6/10/98 4,000 3,975
General Electric Capital Corp.,
5.46%, 7/15/98 10,000 9,886
Goldman Sachs Group, Inc.,
5.68%, 5/14/98 10,000 9,979
McCormick & Co.,
5.43%, 8/10/98 10,000 9,848
McCormick & Co.,
5.46%, 9/23/98 8,000 7,824
McCormick & Co.,
5.43%, 10/13/98 12,000 11,701
McGraw Hill,
5.52%, 5/8/98 11,900 11,887
McGraw Hill,
5.45%, 8/14/98 10,000 9,841
Nalco Chemical,
5.51%, 6/19/98 5,000 4,963
Pemex Capital, Inc.,
5.50%, 6/18/98,
LOC Societe Generale 10,000 9,927
Redwood Receivables Corp.,
5.53%, 5/14/98 4,475 4,466
Toshiba America,
5.55%, 5/19/98 10,000 9,972
Unibanco,
5.51%, 6/11/98,
LOC Westduetsche Landsbank 10,000 9,937
Total Commercial Paper
(Amortized Cost $192,551) 192,551
Corporate Bonds (46.5%)
Associates Corp.,
7.25%, 5/15/98 4,000 4,002
Associates Corp.,
6.50%, 9/9/98 8,000 8,016
Austin Printing Co.,
5.69%<F1>, 5/7/98<F2>,
LOC Bank One 1,860 1,860
Automated Packaging System,
5.69%<F1>, 5/7/98<F2>,
LOC National City Bank 2,890 2,890
AVCO Financial Services,
5.50%, 5/1/98 3,000 3,000
Bank of America,
5.37%<F1>, 5/1/98<F2>, MTN 10,000 9,997
Bear Stearns,
5.70%<F1>, 5/5/98<F2> 5,000 5,001
Bee Holdings, Inc.,
5.69%<F1>, 5/7/98<F2> 1,860 1,860
BellSouth Telecommunications,
5.25%, 6/8/98 4,050 4,047
Beta Finance,
5.69%<F1>, 5/5/98 10,000 9,999
Buckeye Corrugated,
5.69%<F1>, 5/7/98<F2>,
LOC National City Bank 3,275 3,275
CIT Group Holdings,
6.35%, 7/31/98, MTN 5,000 5,007
Comerica Bank,
5.61%<F1>, 5/5/98<F2> 10,000 9,998
Comerica Bank,
6.75%, 5/12/98, MTN 2,000 2,001
F.C. Bellevue, Inc.,
5.69%<F1>, 5/7/98<F2>,
LOC National City Bank 5,000 5,000
FCC National Bank,
5.70%, 1/7/99 5,000 4,999
Ford Motor Credit Corp.,
9.10%, 5/4/98 1,000 1,000
Ford Motor Credit Corp.,
9.25%, 6/15/98 3,889 3,904
Ford Motor Credit Corp.,
5.63%, 12/15/98 4,000 3,997
Ford Motor Credit Corp.,
5.90%<F1>, 5/1/98, MTN 5,000 5,000
General American Life Insurance,
5.89%<F1>, 5/1/98 35,000 35,000
General Electric Capital Corp.,
9.36%, 5/15/98, MTN 2,000 2,003
General Electric Capital Corp.,
6.13%, 9/18/98, MTN 7,000 7,004
General Motors Acceptance Corp.,
7.13%, 5/11/98, MTN 2,000 2,000
General Motors Acceptance Corp.,
6.30%, 6/11/98, MTN 1,500 1,501
General Motors Acceptance Corp.,
6.05%, 10/09/98 2,650 2,652
General Motors Acceptance Corp.,
6.50%, 4/16/99, MTN 5,000 5,037
Hancor, Inc.,
5.69%<F1>, 5/7/98<F2>,
LOC National City Bank 1,050 1,050
Industrial Developement Authority
of Bedford, Va.,
5.68%, 6/12/98,
LOC Society Generale 6,000 6,000
Ivex of Delaware (Kama Project),
5.70%<F1>, 5/7/98<F2>,
LOC Societe Generale 6,500 6,500
John Deere Capital Corp.,
5.85%, 10/28/98, MTN 10,000 9,997
John Deere Capital Corp.,
6.13%, 2/5/99, MTN 3,000 3,009
Legendary Properties,
5.69%, 5/7/98,
LOC National City Bank. 1,425 1,425
Lehman Brothers Holding Inc.,
5.96%, 7/15/98, MTN 5,000 5,003
Lehman Brothers Holding Inc.,
5.75%<F1>, 5/13/98, MTN 8,000 8,000
Lehman Brothers Holding, Inc.,
5.74%<F1>, 5/5/98, MTN 15,000 14,995
Merrill Lynch,
6.60%<F1>,6/24/98 4,500 4,500
Merrill Lynch,
6.60%, 6/24/98, MTN 2,600 2,602
Mobil Australia,
6.38%, 7/17/98, MTN 3,000 3,003
Morgan Guaranty Trust Co.,
5.97%, 6/22/98, 5,500 5,501
Morgan Stanley Dean Witter,
7.88%, 12/15/98 5,000 5,059
Morgan Stanley Dean Witter,
5.79%<F1>, 6/15/98<F2>, MTN 15,000 14,999
Morgan Stanley Dean Witter,
5.95%<F1>, 5/18/98<F2>, MTN 5,000 5,001
Nestle Holding,
5.88%, 6/19/98, MTN 1,230 1,230
OFC Corp.,
5.75%<F1>, 5/6/98<F2>,
LOC LaSalle Bank 11,300 11,300
PepsiCo, Inc.,
5.80%, 8/31/98, MTN 10,000 9,994
Philip Morris,
8.75%, 6/1/98, MTN 4,000 4,009
PNC Bank,
5.40%<F1>, 5/1/98 10,000 9,999
Salomon Brothers, Inc.,
8.69%, 3/1/99, MTN 3,000 3,075
Salomon Brothers, Inc.,
5.90%, 8/24/98, MTN 6,000 6,003
Sea River Maritime,
5.65%, 5/1/98,
Guaranteed by Exxon 23,800 23,800
SGS Tool Co.,
5.69%<F1>, 5/7/98<F2>,
LOC National City Bank 1,340 1,340
Shelbourne Realty,
5.70%<F1>, 5/7/98<F2>,
LOC Star Bank 7,170 7,170
Southern California Edison,
5.45%, 6/15/98 4,690 4,688
Transamerica Finance,
5.60%, 11/30/98, MTN 5,000 4,989
Transamerica Finance,
5.74%, 12/09/98, MTN 3,500 3,495
U.S. West,
5.63%, 7/8/98 2,150 2,149
Venturecor, Inc.,
5.70%<F1>, 5/6/98<F2>,
LOC FNB Chicago 5,000 5,000
Zanetos Partnership Project,
5.69%<F1>, 5/7/98<F2>,
LOC National City Bank 2,220 2,220
Total Corporate Bonds
(Amortized Cost $347,155) 347,155
U.S. Government Agencies (9.2%)
Federal Home Loan Bank (0.8%):
6.01%, 5/21/98 1,130 1,130
5.72%, 4/23/99,
Callable 7/23/98 @ 100 5,000 5,000
6,130
Federal National Mortgage
Assoc. (6.5%):
5.39%, 8/5/98,
Callable 6/22/98 @ 100 3,000 2,996
5.40%, 12/30/98,
Callable 6/22/98 @ 100 10,000 9,972
5.25%<F1>, 5/5/98<F2> 15,000 15,000
5.33%<F1>, 5/5/98<F2> 20,000 20,000
47,968
Student Loan Marketing
Assoc. (1.9%):
5.26%<F1>, 5/5/98<F2> 10,000 10,000
5.28%<F1>, 5/5/98<F2> 4,500 4,500
14,500
Total U.S. Government Agencies
(Amortized Cost $68,598) 68,598
Repurchase Agreements (8.0%)
Donaldson-Lufkin Jenrette
Securities Corp.,
5.52%, 5/1/98,
(Collateralized by
$37,764 various U.S.
Government Securities,
0.00%, 10/15/01-9/26/19,
market value--$15,300) 15,000 15,000
Lehman Brothers, Inc.,
5.52%, 5/1/98,
(Collateralized by
$20,435 U.S.
Treasury Note,
5.63%, 4/30/00,
market value--$20,403) 20,000 20,000
Paine Weber,
5.52%, 5/1/98,
(Collateralized by
$23,603 various U.S.
Government Securities,
5.75%-7.88%, 4/30/03-11/15/04,
market value--$25,442) 25,033 25,033
Total Repurchase Agreements
(Amortized Cost $60,033) 60,033
Total Investments
(Amortized Cost $743,332) <F1>--99.6% 743,332
Other assets in excess of liabilities 0.4% 3,045
TOTAL NET ASSETS--100.0% $746,377
<FN>
<F1> Variable rate securities having liquidity agreements. The interest rate, which will change periodically,
is based upon an index of market interest rates. The rate reflected on the Schedule of Portfolio Investments
is the rate in effect at April 30, 1998. The date reflects the next rate change date.
<F2> Put and demand features exist allowing the Fund to require the repurchase of the investment within variable
time periods less than one year.
LOC--Letter of Credit
MTN--Medium Term Note
</FN>
See notes to financial statements.
</TABLE>
<TABLE>
THE VICTORY PORTFOLIOS Schedule of Investments
Tax-Free Money Market Fund April 30, 1998
(Amounts in Thousands, Except Shares) (Unaudited)
<CAPTION>
Shares or
Principal Amortized
Security Description Amount Cost
<S> <C> <C>
Municipal Bonds (99.6%)
Arizona (3.2%):
Apache County, Tucson
Electric Power,
4.25%<F2>, 5/6/98,
LOC Bank of New York 12,300 $ 12,300
Maricopa County, Southern
California Edison Co.,
3.65%, 8/13/98 1,300 1,300
Pima County, Industrial
Development Authority, IDR,
Brush Wellman Inc. Project,
4.20%<F2>, 5/7/98,
LOC National City Bank 1,500 1,500
Salt River Projects,
3.60%, 9/11/98 1,800 1,800
16,900
Arkansas (1.0%):
State Development Finance
Authority, Potlatch Corp. Project,
Series A, 4.25%<F2>, 5/6/98,
LOC Credit Suisse 5,050 5,050
Colorado (1.6%):
Arvada IDR, Sundstrand
Corp. Project,
4.30%<F2>, 5/7/98,
LOC Union Bank of Switzerland 1,000 1,000
Housing Finance Authority,
4.20%<F2>, 5/6/98, FNMA 3,460 3,460
Housing Finance Authority,
4.20%<F2>, 5/6/98, FNMA 4,075 4,075
8,535
Connecticut (0.8%):
State GO,
Series B, 4.00%, 3/15/99 4,000 4,008
District of Columbia (2.1%):
District of Columbia,
4.10%<F2>, 5/6/98 11,000 11,000
Florida (4.7%):
Hillsborough County, Ringhaven,
4.40%<F2>, 5/7/98,
LOC Mellon Bank 2,500 2,500
Sunshine State Government,
Financing Commission,
3.50%, 7/17/98, AMBAC 6,000 6,000
Sunshine State Government,
Financing Commission,
3.60%, 9/10/98,
LOC Toronto Dominion, AMBAC 6,000 6,000
Sunshine State Government,
Financing Commission,
3.60%, 9/11/98,
LOC Toronto Dominion, AMBAC 7,000 7,000
Volusia County, Housing Finance
Authority, Multi Family
Housing Revenue,
3.50%<F2>, 7/17/98,
LOC Republic 3,105 3,105
24,605
Georgia (0.5%):
Paulding County, GO,
4.25%, 2/1/99 1,500 1,505
State Municipal Electric Authority,
GO of Participants,
3.50%, 9/11/98,
LOC Credit Suisse 1,000 1,000
2,505
Illinois (6.4%):
Development Authority,
Illinois Power Co. Project,
Series C, 4.30%<F2>, 5/6/98,
MBIA 5,500 5,500
Development Financial Authority,
Catherine Cook School Project,
4.30%<F2>, 5/6/98,
LOC Harris Bank & Trust 2,225 2,225
Development Financial Authority,
Kindlon Partnership Project,
4.25%<F2>, 5/6/98,
LOC LaSalle National Bank 1,400 1,400
Development Financial, Museum
Contemporary Arts Project,
4.15%<F2>, 5/6/98,
LOC NBD Bank 5,500 5,500
Educational Facilities, University
Pooled Funding Program,
4.15%<F2>, 5/6/98,
FGIC 955 955
Hanover Park IDR,
Spectra-Tech, Inc. Project,
4.45%<F2>, 5/7/98,
LOC Harris Trust & Savings Bank 1,775 1,775
Health Facility,
4.15%<F2>, 5/6/98,
LOC Harris Trust & Savings Bank 1,000 1,000
Kankakee County IDR,
Ivex Corp. Project,
4.35%<F2>, 5/7/98,
LOC Societe Generale AMT 3,500 3,500
Kendall & Kane County,
4.30%, 12/21/98,
LOC Bank One 1,000 1,003
Mundelein,
4.15%<F2>, 5/6/98,
LOC Harris Trust & Savings Bank 1,800 1,800
Quad Cities,
4.25%<F2>, 5/7/98,
LOC Bank One 3,600 3,600
State Development Financial
Authority, Economic
Development Revenue,
CPL/Downers Grove Partnership,
4.30%<F2>, 5/6/98,
LOC LaSalle National Bank 4,400 4,400
State GO,
5.13%, 12/1/98,
FGIC 1,000 1,009
33,667
Indiana (8.8%):
Educational Facility Authority
Revenue, Bethel College,
Series A, 4.15%<F2>, 5/6/98,
LOC NBD Bank 300 300
Elkhart,
3.75%<F2>, 5/1/98,
LOC Bank One 500 500
Financing Authority Health
Facility Revenue, Baptist Homes
of Indiana, 4.15%<F2>, 5/7/98,
LOC Bank One 6,525 6,525
Franklin County, EDR,
J&J Project,
4.35%<F2>, 5/7/98,
LOC Fifth Third Bank 3,820 3,820
Franklin County, IDR,
Sisters of St. Francis Project,
4.35%<F2>, 5/7/98, LOC NBD Bank 5,000 5,000
Franklin, EDR,
Davidson Industries, Inc. Project,
Series A, 4.25%<F2>, 5/7/98,
LOC Bank One 1,600 1,600
Greenwood IDR,
Jacks Investments LLC Project,
4.25%<F2>, 5/7/98,
LOC Bank One AMT 2,170 2,170
Greenwood, EDR,
Endress & Hauser Inc.,
Series B, 4.25%<F2>, 5/7/98,
LOC Deutsche Bank AG 1,100 1,100
Indianapolis, EDR,
White Arts, Inc. Project,
4.35%<F2>, 5/7/98,
LOC Fifth Third Bank 5,000 5,000
Mooresville, Kendrick Memorial
Hospital Project,
4.20%<F2>, 5/7/98,
LOC Huntington National Bank 2,800 2,800
Noblesville, Rivers Edge
Apartments Project,
4.15%<F2>, 5/7/98,
LOC Bank One 3,055 3,055
Scottsburg, EDR,
Multi Color Project,
4.70%<F2>, 5/7/98,
LOC PNC Bank 4,570 4,570
Seymour, EDR,
Pedcor Investors Project,
Series A, 4.30%<F2>, 5/7/98,
LOC Federal Home Loan
Bank AMT 4,100 4,100
Seymour, EDR,
Pedcor Investors Project,
Series B, 4.30%<F2>, 5/7/98,
LOC Federal Home Loan Bank 500 500
State Development Financial
Authority, EDR,
Dura-Crete Project,
4.25%<F2>, 5/7/98,
LOC Bank One AMT 3,910 3,910
Wakarusa, EDR,
MMM-Invest Inc. Project,
4.15%<F2>, 5/7/98,
LOC Bank One 920 920
45,870
Iowa (1.9%):
City of Urbandale,
4.00%<F2>, 5/1/98,
Guaranteed by Principle
Mutual Life Insurance Co. 4,325 4,325
Financial Authority,
Sauer-Sundstrand Co. Project,
4.25%<F2>, 5/6/98,
LOC Bayerische Vereinsbank 4,000 4,000
Woodbury County,
Facilities Revenue,
Siouxland Medical
Education Foundation,
4.10%<F2>, 5/7/98,
LOC Firstar Bank 1,500 1,500
9,825
Kansas (4.0%):
Burlington Pollution Control,
Kansas City Power & Light,
3.70%<F2>, 7/23/98,
LOC Societe General 2,000 2,000
Burlington Power & Light Project,
Series B, 3.60%, 8/13/98,
LOC Deutsche Bank 5,500 5,500
Burlington Power & Light Project,
Series A, 3.70%, 7/23/98,
LOC Toronto Dominion 2,000 2,000
Fairway, IDR, J.C. Nichols Co., Inc.,
4.00%<F2>, 5/1/98,
Guaranteed by Principle Mutual
Life Insurance Co. 2,300 2,300
Lenexa Health Care Facility,
Lakeview Village,
Series A, 4.15%<F2>, 5/7/98,
LOC Lasalle National Bank 9,160 9,160
20,960
Kentucky (5.5%):
Asset Liability, Tax and Revenue
Anticipation Notes,
4.50%, 6/25/98 2,000 2,002
Bath County Industrial
Building Revenue,
Cintas Sales Corp. Project,
4.35%<F2>, 5/7/98,
LOC Fifth Third Bank 1,135 1,135
Boone County, Industrial
Building Revenue,
Multi-Color Corp. Project,
4.70%<F2>, 5/7/98,
LOC PNC Bank 2,975 2,975
Carroll County, IDR,
Kentucky Ladder Co. Project,
4.50%<F2>, 5/6/98,
LOC Bankers Trust Co. 5,000 5,000
Covington Industrial Building
Revenue, J & S Co. Project,
4.10%, 12/1/98,
LOC National City Bank 195 195
Dayton Industrial Building
Revenue, Woodcraft
Manufacturing Co., Inc. Project,
4.10%<F2>, 5/7/98,
LOC Fifth Third Bank 650 650
Jefferson County, Industrial
Building Revenue,
Hamilton Printing, Inc. Project,
4.35%<F2>, 5/7/98,
LOC Fifth Third Bank AMT 4,500 4,500
Lewis County, Industrial Building
Revenue, Stolle Vanceburg, Inc.,
4.35%<F2>, 5/7/98,
LOC Fifth Third Bank AMT 1,035 1,035
Louisville IDR, Zeochem Project,
4.35%<F2>, 5/6/98,
LOC National City Bank 2,400 2,400
Pendelton County,
Self Insured Funding,
Kentucky Association
of Counties Fund,
3.95%, 7/1/01<F3>,
LOC PNC Bank 5,100 5,100
Somerset, Industrial Building
Revenue, Glen Oak
Lumber & Mining,
4.25%<F2>, 5/7/98,
LOC Bank One AMT 2,670 2,670
State Rural Economic
Development Authority,
PB&S Chemical Co. Project,
Revenue Bond,
4.25%<F2>, 5/7/98,
LOC Westdeutsche
Landesbank AMT 1,300 1,300
28,962
Louisiana (0.7%):
Caddo Parish Industrial
Development Board,
Exempt Facilities Revenue,
Atlas Project,
Series B, 4.10%<F2>, 5/6/98,
LOC ABN-Amro Bank N.V. 2,550 2,550
Public Facilities Revenue,
Our Lady of Lourdes
Regional Medical Center,
4.70%, 2/1/99, MBIA 1,085 1,094
3,644
Maine (1.1%):
Biddeford, BAN,
4.02%, 6/1/98 1,000 1,000
State Public Utility Financing
Bank, Public Utility
Revenue, Maine Public
Service Co. Project,
4.35%<F2>, 5/6/98,
LOC Bank of New York AMT 5,000 5,000
6,000
Michigan (4.8%):
Higher Education Facilities
Authority, Davenport
College Project, Revenue Bond,
4.15%<F2>, 5/7/98,
LOC Old Kent Bank 920 920
Iron Mountain City School District,
3.90%, 5/1/98,
AMBAC 485 485
Saline, EDR,
Brecon Village Project,
4.15%<F2>, 5/6/98,
LOC NBD Bank 11,700 11,700
State Strategic Fund,
Rospatch Corp.,
4.50%<F2>, 5/6/98,
LOC Harris Bank & Trust AMT 1,200 1,200
State Strategic,
Environmental Quality,
4.30%<F2>, 5/6/98,
LOC Comerica Bank AMT 900 900
State Strategic,
Fleet Engineers Inc. Project,
4.20%<F2>, 5/7/98,
LOC Comerica Bank 2,000 2,000
State Strategic,
Merrill Group Project,
4.20%<F2>, 5/7/98,
LOC Comerica Bank 4,000 4,000
State Strategic,
Thermal Transfer Inc. Project,
4.20%<F2>, 5/7/98,
LOC Comerica Bank 3,850 3,850
25,055
Minnesota (0.5%):
St. Cloud Housing & Redevelopment
Authority, Webway Inc. Project,
4.35%<F2>, 5/7/98,
LOC National City Bank 2,670 2,670
Missouri (1.8%):
Cuba Industrial
Development Authority,
Imre & Carolyn Project,
4.25%<F2>, 5/7/98,
LOC Bank One 1,025 1,025
Kansas City Industrial
Development Authority,
Multifamily Housing Revenue,
J.C. Nichols Co. Project,
4.00%<F2>, 5/1/98,
LOC Principle Mutual Life
Insurance Co. 3,600 3,600
St. Louis County Industrial
Development Authority,
Friendship Village,
Series B, 4.20%<F2>, 5/6/98,
LOC LaSalle National Bank 4,725 4,725
9,350
Nebraska (1.3%):
Investment Finance Authority,
Single Family Housing Revenue,
3.90%, 9/1/29<F3> 3,700 3,700
State Investment Finance
Authority, Single Family
Mortgage Revenue,
Series B, 3.70%, 7/15/15,
GNMA/FGIC 2,895 2,895
6,595
Nevada (2.8%):
Reno, EDR,
Dunsirn Industries Project,
4.25%<F2>, 5/7/98,
LOC Bank One 4,300 4,300
State,
4.25%<F2>, 5/7/98,
FGIC 10,200 10,200
14,500
New Hampshire (0.7%):
Merrimack County,
Tax Anticipation Note,
3.78%, 12/30/98 3,750 3,750
New York (2.1%):
Municipal Assist Corp.,
4.20%<F2>, 5/6/98,
LOC National
Westminster Bank 4,150 4,150
New York,
4.25%<F2>, 5/1/98,
LOC Morgan Guaranty Trust 6,100 6,100
Oneida County, IDR,
Mohawk Valley,
Series A, 3.85%, 2/1/99,
FSA 500 500
10,750
North Carolina (1.5%):
Medical Care,
Pooled Funding Project,
Series A, 4.25%<F2>, 5/1/98,
LOC Nationsbank 7,800 7,800
Ohio (10.8%):
Ashtabula County,
Medical Center Project,
Revenue Bond,
4.15%<F2>, 5/7/98,
LOC Bank One 3,400 3,400
Bedford County, IDR,
Allen Group Inc.,
4.30%<F2>, 5/6/98,
LOC Dresdner Bank AG 3,500 3,500
Cincinnati, Tax
Anticipation Note,
Series C, 4.50%, 12/1/98 6,725 6,755
Cuyahoga County,
4.15%<F2>, 5/6/98,
AMBAC 3,800 3,800
Eastlake, BAN,
4.38%, 7/16/98 1,120 1,121
Erie County, Tax and
Revenue Anticipation Notes,
4.38%, 12/31/98 2,500 2,508
Geauga County, BAN,
3.94%, 3/11/99 2,000 2,003
Hamilton County, Health Alliance,
Series F, 4.10%<F2>, 5/6/98,
MBIA 3,400 3,400
Huron GO, BAN,
3.94%, 2/24/99 1,842 1,845
Mahoning County,
Copeland Oaks Project,
4.15%<F2>, 5/7/98,
LOC Bank One 2,470 2,470
St. Mary's,
City School District, GO,
3.99%, 2/23/99 250 250
State Water Development
Authority, Pollution Control
Facilities, Cleveland Electric,
Series B, 4.15%<F2>, 5/6/98,
LOC FNB Chicago 20,100 20,100
Student Loan Funding Corp.,
Series A-2, 4.10%<F2>, 5/6/98,
LOC National Westminster Bank 1,000 1,000
Toledo City Services
Special Assessment,
4.10%<F2>, 5/7/98,
LOC Canadian Imperial Bank 4,500 4,500
56,652
Oklahoma (1.9%):
County Finance Authority, IDR,
Perrine Office Project,
3.80%<F2>, 5/15/98, FGIC 3,170 3,170
Development Financial Authority,
Seaboard Farms Project,
Revenue Bond,
4.35%<F2>, 5/6/98,
LOC Bank of New York 5,000 5,000
Oklahoma County Finance
Authority, IDR, Hutto-Carbon
Office Project,
3.80%<F2>, 5/15/98, FGIC 1,650 1,650
9,820
Oregon (0.2%):
Klamath Falls,
Salt Caves Hydro Electric,
Series B, 3.80%, 5/1/23,
ESC UST 1,150 1,152
Pennsylvania (5.7%):
Allegheny County,
4.05%<F2>, 5/6/98, MBIA 18,600 18,600
Cheltenham, Tax and Revenue
Anticipation Notes,
4.06%, 12/31/98 1,300 1,302
Delaware County, Industrial
Development Authority,
Pollution Control Revenue,
Philidelphia Electric,
Series A, 3.50%<F2>, 9/4/98, FGIC 6,600 6,600
EDR, Fourth Generation Realty,
Series A, 4.35%<F2>, 5/7/98,
LOC PNC Bank 3,100 3,100
29,602
South Carolina (1.0%):
Florence County, BAN,
4.20%, 10/1/98 4,975 4,978
Tennessee (1.9%):
McKenzie Industrial Development
Board, IDR, Noma Outdoor
Products, Inc., Project,
4.35%<F2>, 5/7/98,
LOC Wachovia
Bank & Trust AMT 5,000 5,000
Memphis Shelby County,
Birmingham Steel Corp. Project,
4.35%<F2>, 5/7/98,
LOC PNC Bank 5,000 5,000
10,000
Texas (3.3%):
Canadian River Municipal Revenue,
Conjunctive Use Ground
Water Project,
4.65%, 2/15/99, AMBAC 225 227
Dallas County Utilities GO,
7.00%, 2/15/99, MBIA 250 256
Harris County,
4.15%<F2>, 5/6/98, MBIA,
SPA Bank of New York 7,900 7,900
Harris County Industrial
Development Corp., IDR,
Precision General, Inc. Project,
4.25%<F2>, 5/7/98,
LOC Morgan Guaranty Trust 4,140 4,140
Houston, Water Systems
Revenue Bond,
4.75%, 12/1/98 400 402
Sabine River Authority,
4.30%<F2>, 5/5/98,
LOC Union Bank of Switzerland 2,200 2,200
San Antonio, Electric And
Gas Revenue,
6.00%, 2/1/14, ESC UST 1,915 1,977
17,102
Vermont (0.5%):
Municipal Bond GO,
5.00%, 12/1/98, AMBAC 2,500 2,520
Virginia (1.9%):
Colonial Heights,
Philip Morris Cos. Project,
4.25%<F2>, 5/6/98 2,600 2,600
Peninsula Ports Authority,
3.60%, 7/10/98,
LOC Bank Of Novia Scotia 1,000 1,000
Petersburg,
Hospital Authority,
4.25%<F2>, 5/7/98,
LOC First Union National Bank 2,000 2,000
Richmond,
Philip Morris Cos. Project,
4.25%<F2>, 5/6/98 1,700 1,700
York County,
Philip Morris Cos. Project,
4.25%<F2>, 5/6/98 2,700 2,700
10,000
Washington (1.3%):
Port Seattle,
3.50%, 8/7/98,
LOC Bank of America 3,645 3,645
Port Seattle,
3.65%, 9/11/98,
LOC Bank of America 1,040 1,040
Spokane County,
Water Revenue,
7.60%, 1/1/08, ESC UST 2,000 2,049
6,734
Wisconsin (11.1%):
Appleton, IDR,
Pensar Corp. Project,
4.25%<F2>, 5/7/98,
LOC Bank One AMT 690 690
Beloit School District,
Tax and Revenue Anticipation
Promissory Notes,
4.11%, 10/30/98 1,700 1,700
Brown Deer School District,
Tax and Revenue Anticipation
Promissory Notes,
4.00%, 10/29/98 4,500 4,502
Evansville, Stoughton Trailers Inc.,
4.25%<F2>, 5/7/98,
LOC Bank One 5,980 5,981
Fredonia, IDR, Capital
Stampings Corp. Project,
4.25%<F2>, 5/7/98,
LOC Bank One 2,905 2,905
Howard Suamico School District,
Tax & Revenue Anticipation
Promissory Notes,
4.07%, 8/21/98 2,800 2,800
Janesville IDR,
The Lamson & Sessions Co.,
4.35%<F2>, 5/7/98,
LOC General Electric
Capital Corp. AMT 2,800 2,800
Kenosha IDR, Metalmen
Building LLC Project,
4.25%<F2>, 5/7/98,
LOC Bank One AMT 3,595 3,595
Kenosha School District,
Tax and Revenue Anticipation
Promissory Notes,
4.15%, 9/28/98 2,500 2,501
Kenosha School District,
Tax and Revenue Anticipation
Promissory Notes, 4.20%, 9/28/98 5,000 5,002
Kenosha School District,
Tax and Revenue Anticipation
Promissory Notes,
4.28%, 9/28/98 3,800 3,801
Lodi School District,
Tax and Revenue Anticipation
Promissory Notes,
3.99%, 10/15/98 1,500 1,500
Maple Dale-Indian Hills
School District,
Tax & Revenue Anticipation
Promissory Notes,
4.10%, 8/20/98 2,300 2,301
New Berlin IDR,
Wenninger Project,
4.25%<F2>, 5/7/98,
LOC Bank One AMT 1,250 1,250
Oak Creek, IDR, McAdams
Graphics, Inc. Project,
4.25%<F2>, 5/7/98,
LOC Bank One AMT 1,370 1,370
Oconomowoc Area School
District, Tax & Revenue
Anticipation Promissory Notes,
4.00%, 9/21/98 4,600 4,600
Oshkosh IDR, Oshkosh
Architectural Project,
4.25%<F2>, 5/7/98,
LOC Norwest Bank AMT 940 940
Oshkosh,
Schloesser/OEC Graphics,
4.25%<F2>, 5/7/98,
LOC Bank One AMT 800 800
Plymouth, IDR, Great Lakes
Cheese, Inc. Project,
4.25%<F2>, 5/7/98,
LOC Rabobank AMT 3,500 3,500
Pulaski, Tax and Revenue
Anticipation Promissory Notes,
4.26%, 10/1/98 1,000 1,001
State Health And
Educational Facilities,
Cedar Crest Inc. Project,
4.15%<F2>, 5/7/98,
LOC Bank One 1,000 1,000
Waukesha IDR,
Alloy Products Corp. Project,
4.25%<F2>, 5/7/98,
LOC Bank One AMT 1,500 1,500
Wisconsin, Tax and Revenue
Anticipation Notes,
4.10%, 10/30/98 2,100 2,101
58,140
Wyoming (2.3%):
Converse County, Pollution
Control Revenue,
PacificCorp Project,
3.45%<F2>, 7/6/98,
LOC Deutsche Bank AG 4,800 4,800
Gillette, PacifiCorp Project,
3.45%, 7/6/98,
LOC Deutsche Bank AG 2,200 2,200
Lincoln County,
PacifiCorp Project,
3.60%, 8/19/98,
LOC Union Bank of Switzerland 1,000 1,000
Lincoln County,
PacifiCorp Project,
3.60%, 8/19/98,
LOC Union Bank of Switzerland 3,900 3,900
11,900
Total Municipal Bonds
(Amortized Cost $520,601) 520,601
Investment Companies (0.2%)
Federated Tax-Free
Money Market Fund 840,859 841
Total Investment Companies
(Amortized Cost $841) 841
Total Investments
(Amortized Cost $521,442) <F1>--99.7% 521,442
Other assets in excess of liabilities 0.3% 1,459
TOTAL NET ASSETS--100.0% $522,901
<FN>
<F1> Cost and value for federal income tax and financial reporting purposes are the same.
<F2> 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, 1998. The date reflects the next rate change date.
<F3> Put and demand features exist allowing the Fund to require the repurchase of the investment within variable
time periods less than one year.
AMBAC--AMBAC Indemnity Corp.
AMT--Alternative Minimum Tax
BAN--Bond Anticipation Notes
EDR--Economic Development Revenue
ESC--UST Escrowed by U.S. Treasury Security
FGIC--Insured by Financial Guaranty Insurance Corp.
FNMA--Federal National Mortgage Assoc.
FSA--Insured by Financial Security Assurance
GNMA--Insured by Government National Mortgage Assoc.
GO--General Obligation
IDR--Industrial Development Revenue
LOC--Letter of Credit
SPA--Standby Purchase Agreement
</FN>
See notes to financial statements.
</TABLE>
<TABLE>
THE VICTORY PORTFOLIOS Schedule of Investments
Ohio Municipal Money Market Fund April 30, 1998
(Amounts in Thousands, Except Shares) (Unaudited)
<CAPTION>
Shares or
Principal Amortized
Security Description Amount Cost
<S> <C> <C>
Municipal Bonds (99.3%)
Ohio (99.3%):
Akron Bath Copley Township
Hospital, Visiting Nurse
Services, Inc. Project,
4.20%<F2>, 5/7/98,
LOC National City Bank 580 $ 580
Akron, Sewer System Revenue,
3.70%, 12/1/98, FGIC 715 715
Ashland County,
Jail Construction, GO,
4.20%, 12/17/98 2,200 2,204
Ashland County,
Jail Construction, GO,
4.14%, 12/17/98 3,850 3,858
Auglaize County,
G.A. Wintzer & Son Co. Project,
4.19%<F2>, 5/7/98,
LOC Bank One AMT 2,670 2,670
Avon, GO,
4.10%, 7/2/98 1,300 1,301
Barberton School District, GO,
4.34%, 6/1/98 2,000 2,001
Beavercreek, GO,
4.30%, 6/5/98 175 175
Beavercreek, GO,
4.25%, 5/8/98 540 540
Bedford Heights, IDR,
Olympic Steel Inc. Project,
4.29%<F2>, 5/6/98,
LOC National City Bank 1,400 1,400
Belmont County, GO,
4.17%, 11/24/98 1,900 1,903
Berea,
4.00%, 10/15/98 2,300 2,302
Bowling Green, GO,
3.98%, 6/18/98 3,325 3,325
Bowling Green, GO,
3.93%, 12/3/98 3,200 3,201
Bowling Green, IDR,
Lamson & Sessions Project,
4.36%<F2>, 5/7/98,
LOC Mid American
National Bank 1,580 1,580
Bowling Green, IDR,
Lamson & Sessions Project,
4.24%<F2>, 5/7/98,
LOC General Electric
Capital Corp. 2,400 2,400
Brecksville, GO,
4.15%, 7/29/98 585 585
Brooklyn Heights, IDR,
4.19%, 5/7/98,
LOC Bank One 360 360
Brooklyn, IDR,
Clinton Road Project,
Series-B, 3.70%<F2>, 5/1/98,
LOC Banc One 485 485
Bryan, GO,
4.14%, 10/14/98 2,000 2,002
Butler County, GO,
3.89%, 10/22/98 2,360 2,364
Butler County,
Hospital Facilities Revenue,
4.19%<F2>, 5/7/98,
LOC Fifth Third Bank 1,000 1,000
Butler County, Wyndtree,
3.90%<F2>, 1/1/99<F3>, FGIC 5,000 5,000
Canal Winchester Local
School District, GO,
4.25%, 6/17/98 3,500 3,502
Centerville Health Care
Revenue, Bethany Lutheran,
4.09%<F2>, 5/6/98,
LOC PNC Bank 4,550 4,550
Chillicothe, EDR, Motel
Partnership Project,
4.19%<F2>, 5/7/98,
LOC Huntington National Bank 2,210 2,210
Cincinnati & Hamilton
County Port Authority, EDR,
Bethesda One Ltd.,
4.00%, 8/1/15<F3>,
LOC Bank One 290 290
Cincinnati & Hamilton, IDR,
4th Star Ltd.
Partnership Project,
3.90%<F2>, 5/1/98,
LOC PNC Bank 6,955 6,955
Clark County, GO,
4.35%, 5/14/98 965 965
Clermont County, IDR,
Diversified Glass Inc. Project,
4.40%<F2>, 5/7/98,
LOC Star Bank 1,145 1,145
Cleveland, Airport Improvement,
Series D, 4.04%<F2>, 5/6/98,
LOC Toronto
Dominion Bank AMT 1,500 1,500
Clinton County Airport
Facilities Revenue,
4.09%<F2>, 5/7/98,
LOC Wachovia
Bank of North Carolina 6,700 6,700
Cuyahoga County,
Cleveland Clinic,
4.09%<F2>, 5/5/98,
SPA Bank of America 34,600 34,598
Cuyahoga County,
Hospital Revenue Bond,
Cleveland Clinic,
4.09%<F2>, 5/6/98,
SPA Bank of America 3,000 3,000
Cuyahoga County, IDR,
Allen Group Project,
4.14%<F2>, 5/6/98,
LOC Dresdner Bank AG 2,700 2,700
Cuyahoga County, IDR,
Crestmont-Cleveland
Partnership Project,
3.90%, 10/15/06,
LOC Bank One 490 490
Cuyahoga County, IDR,
Decorp Project,
4.09%<F2>, 5/7/98,
LOC Bank One 2,060 2,060
Cuyahoga County, IDR,
Interstate Diesel,
4.83%<F2>, 5/1/98,
LOC Huntington National Bank 330 330
Cuyahoga County, IDR,
Landerhaven Executive Project,
4.61%<F2>, 5/6/98,
LOC Star Bank 2,145 2,145
Cuyahoga County, IDR,
Playhouse Square
Foundation Project,
4.30%<F2>, 5/6/98,
LOC National City Bank 4,535 4,535
Cuyahoga County, IDR,
Premier Mfg. Corp. Project,
4.44%<F2>, 5/6/98,
LOC National City Bank 300 300
Cuyahoga County, IDR,
Watt Printing Co. Project,
4.19%<F2>, 5/7/98,
LOC Bank One 3,480 3,480
Cuyahoga County,
Ohio Hospital, Cleveland Clinic,
4.09%<F2>, 5/6/98,
SPA Chase Manhattan 4,400 4,400
Cuyahoga Falls, GO,
4.25%, 12/17/98 4,000 4,008
Cuyahoga Falls,
Hospital Facilities Revenue,
Portage Trail Care
Center Project,
4.24%<F2>, 5/7/98,
LOC Provident Bank 3,200 3,200
Cuyahoga Falls,
Hospital Facilities Revenue,
Portage Trail Care
Center Project,
4.24%<F2>, 5/7/98,
LOC Fifth Third Bank 2,300 2,300
Deerfield Township, GO,
3.95%, 8/13/98 1,000 1,000
Delaware, GO,
4.04%, 6/4/98 1,400 1,400
Elyria, GO,
4.05%, 8/19/98 1,280 1,280
Erie County, GO,
4.13%, 11/23/98 600 601
Erie County, GO,
4.15%, 7/10/98 1,600 1,601
Fairborn, GO,
3.97%, 8/21/98 1,220 1,220
Fairfield County, GO,
4.30%, 9/1/98 400 401
Fairfield County, GO,
4.50%, 9/1/98 AMT 631 632
Fairfield, GO,
4.10%, 7/1/98 AMT 1,250 1,250
Findlay, GO,
4.38%, 1/20/99 995 999
Franklin County, EDR,
Dominican Sisters,
4.14%<F2>, 5/7/98,
LOC Fifth Third Bank 2,490 2,490
Franklin County,
Health Care Facilities
Revenues, Lifeline
Organ Procurement,
4.14%<F2>, 5/7/98,
LOC Fifth Third Bank 1,770 1,770
Franklin County,
Health System Revenue,
Health Care
Facilities--Wesley Glen,
4.16%<F2>, 5/7/98,
LOC Fifth Third Bank 2,800 2,800
Franklin County,
Health System Revenue,
Health Care
Facilities--Wesley Glen,
4.16%<F2>, 5/7/98,
LOC Fifth Third Bank 980 980
Franklin County,
Hospital Revenue,
Children's Hospital Project,
Series B, 4.19%<F2>, 5/7/98,
LOC Bank One 9,400 9,400
Franklin County,
Hospital Revenue, National
Church Residences Project,
4.24%, 5/7/98,
LOC Fifth Third Bank 1,490 1,490
Franklin County, Hospital
Revenue, U.S. Health Corp.,
Series A, 4.04%<F2>, 5/7/98,
LOC Morgan Guaranty 4,000 4,000
Franklin County,
Housing Revenue,
5.20%, 1/1/99,
LOC Huntington National Bank 4,800 4,845
Franklin County, IDR,
4.10%, 9/1/06<F3>,
LOC Key Bank 1,925 1,925
Franklin County, IDR,
Capitol South Community
Redevelopment,
3.55%<F2>, 5/1/98,
LOC Huntington National Bank 3,350 3,350
Franklin County, IDR,
Jacobson Stores,
3.55%<F2>, 5/1/98,
LOC Bank One 7,000 7,000
Franklin County, Jefferson Chase
Apartment Project,
3.85%<F2>, 12/1/98<F3>,
LOC Fifth Third Bank 4,500 4,500
Franklin County,
Multifamily Revenue,
4.34%<F2>, 5/7/98,
LOC Huntington Bank AMT 700 700
Geauga County,
4.14%, 12/17/98 3,400 3,404
Georgetown, School District,
4.19%, 12/18/98 1,200 1,202
Graham, Local School District, GO,
Series A, 4.29%, 5/28/98 2,000 2,001
Granville, GO,
4.41%, 5/19/98 550 550
Greene County, GO,
4.50%, 5/7/98 9,250 9,251
Greene County, GO,
4.15%, 6/4/98 10,770 10,774
Grove City, GO,
4.08%, 6/26/98 780 780
Grove City, IDR,
Cross Country Inns, Inc.,
4.09%<F2>, 5/7/98,
LOC Bank One 1,670 1,670
Hamilton County, EDR,
Berman Printing Co. Project,
4.29%<F2>, 5/7/98,
LOC Fifth Third Bank 4,970 4,970
Hamilton County, EDR,
Cincinnati Performing Arts,
4.19%<F2>, 5/7/98,
LOC Fifth Third Bank 1,600 1,600
Hamilton County, EDR,
TBM, Inc. Project,
4.34%<F2>, 5/7/98,
LOC Fifth Third Bank 2,975 2,975
Hamilton County,
Hospital Facilities Revenue,
Beechwood Home Project,
4.24%<F2>, 5/7/98,
LOC Star Bank 4,100 4,100
Hamilton County,
Multifamily Revenue,
Forest Ridge
Apartment Project,
4.24%<F2>, 5/7/98,
LOC PNC Bank 10,000 10,000
Highland Heights, GO,
4.05%, 11/17/98 3,700 3,704
Hilliard, IDR,
Baesman Printing
Corp. Project,
4.29%<F2>, 5/7/98,
LOC Fifth Third Bank 835 835
Holmes County, IDR,
Poultry Processing Project,
4.24%<F2>, 5/6/98,
LOC Rabobank 500 500
Housing Finance Agency,
3.80%, 3/1/99,
GNMA AMT 15,000 15,000
Housing Finance Agency,
Multifamily Housing Revenue,
Hunters Glen Project,
4.24%<F2>, 5/7/98,
LOC PNC Bank 7,375 7,375
Housing Finance Agency,
Series 15, 4.09%<F2>, 5/6/98, FSA 7,500 7,500
Housing Finance Agency,
Series 25, 4.09%<F2>, 5/6/98, GNMA 4,160 4,160
Housing Finance Agency,
Single Family Housing,
4.09%<F2>, 5/6/98, GNMA AMT 3,300 3,300
Housing Finance Agency,
Single Family Housing,
4.20%, 9/1/30<F3>, GNMA AMT 5,000 5,000
Housing Finance Agency,
Single Family
Mortgage Revenue,
4.09%<F2>, 5/6/98, GNMA 4,900 4,900
Huron County, IDR,
American Baler Co. Project,
4.19%<F2>, 5/7/98,
LOC Bank One 2,000 2,000
Jefferson School District,
4.44%, 6/19/98 600 600
Kenton, GO,
3.94%, 4/8/99 1,000 1,002
Kings, Local School District, GO,
4.45%, 7/10/98 645 646
Lake County, EDR,
Lake County YMCA Project,
4.09%<F2>, 5/7/98,
LOC Bank One 3,000 3,000
Licking County, IDR,
Sunfield, Inc. Project,
4.19%<F2>, 5/7/98,
LOC Bank One 1,495 1,495
Lima, Hospital Revenue,
Lima Memorial Hospital,
4.14%<F2>, 5/7/98,
LOC Bank One 6,700 6,700
Lorain County, EDR,
Crestmont-Cleveland
Partnership Project,
3.85%, 10/15/06<F3>,
LOC Bank One 1,180 1,180
Lorain County, GO,
4.23%, 8/28/98 1,074 1,075
Lorain County, IDR,
French Creek Partners,
4.29%<F2>, 5/7/98,
LOC Bank One 950 950
Lucas County, GO,
Sewer & Water Improvements,
4.11%, 10/21/98 1,585 1,587
Lucas County,
Hospital Revenue, Sunshine
Children's Home Project,
4.14%<F2>, 5/7/98,
LOC National City Bank 375 375
Lucas County,
Hospital Revenue, Sunshine
Children's Home Project,
4.14%<F2>, 5/7/98,
LOC National City Bank 455 455
Lucas County, IDR, Bunting
Bearings Corp. Project,
4.29%<F2>, 5/7/98,
LOC National City Bank 1,650 1,650
Madison, School District, GO,
4.25%, 1/27/99 1,255 1,259
Mahoning County, IDR,
Tru-Cut Die Corp. Project,
Series B, 4.14%<F2>, 5/7/98,
LOC Bank One 190 190
Maple Heights, GO,
4.15%, 7/9/98 833 833
Marion County,
Hospital Improvement Revenue,
Pooled Leasing Program,
4.09%<F2>, 5/7/98,
LOC Bank One 395 6,845
Maumee, GO,
4.15%, 7/16/98 1,800 1,801
Medina County, IDR,
Nationwide One 1989 Project,
3.90%, 5/1/04<F3>,
LOC Bank One 325 325
Medina County, IDR,
Partnership in Plastic Project,
4.24%<F2>, 5/7/98,
LOC Bank One AMT 995 995
Miamisburg, GO,
4.13%, 10/15/98 850 851
Monroe, GO,
3.98%, 4/7/99 3,000 3,005
Montgomery County,
Healthcare Facilities Revenue,
Greater Dayton
Area--MRI Project,
4.17%<F2>, 5/6/98,
LOC Key Bank 630 630
Montgomery County, IDR,
Citywide Development
Corp. Project,
4.19%<F2>, 5/7/98,
LOC Banc One 2,350 2,350
Montgomery County, IDR,
Town Centers Ltd.
Partner Project,
3.95%<F2>, 5/15/98,
LOC National City Bank 1,730 1,730
Montgomery County,
Multifamily Housing
Revenue, Pedcor
Investments--Lyons Gate,
4.24%<F2>, 5/7/98,
LOC Federal Home Loan Bank 5,000 5,000
Montgomery County,
Solid Waste, PCR,
5.00%, 11/1/98, MBIA 1,290 1,298
Montgomery, IDR,
Bethesda Two Ltd.,
4.83%<F2>, 5/1/98,
LOC Huntington National Bank 2,800 2,800
Muskingum County,
4.54%<F2>, 5/7/98,
LOC Huntington National Bank 1,320 1,320
Napoleon, GO,
3.89%, 7/1/98 4,360 4,360
North Baltimore,
School District, GO,
4.62%, 4/15/99 390 393
Northwood, GO,
4.70%, 7/30/98 1,180 1,182
Orrville, Hospital Facilities Revenue,
4.24%<F2>, 5/6/98,
LOC National City Bank 1,450 1,450
Orrville, IDR,
Contours, Inc. Project,
4.44%<F2>, 5/6/98,
LOC National City Bank 100 100
Orrville, IDR, Contours-Lessee Project,
4.44%<F2>, 5/6/98,
LOC National City Bank 150 150
Painesville, GO,
4.14%, 12/16/98 886 887
Paulding County, IDR,
Countrymark Co-op, Inc. Project,
4.14%<F2>, 5/7/98,
LOC Fifth Third Bank 400 400
Perrysburg, GO,
4.60%, 11/19/98 3,300 3,311
Perrysburg, GO,
4.60%, 8/20/98 2,200 2,204
Pickerington, GO,
4.15%, 7/24/98 500 500
Pickerington, School District, GO,
4.24%, 8/3/98 1,500 1,501
Pickerington, School District, GO,
4.07%, 8/3/98 1,500 1,502
Pike County,
Hospital Facilities Revenue,
Bristol Village Project,
4.24%<F2>, 5/7/98,
LOC Fifth Third Bank 3,300 3,300
Pike County,
Hospital Facilities,
Bristol Village Project,
4.24%<F2>, 5/7/98,
LOC Fifth Third Bank 1,355 1,355
Portsmouth, EDR,
Oscc Industries, Inc. Project,
4.29%<F2>, 5/7/98,
LOC National City Bank 2,600 2,600
Portsmouth, IDR,
KSA Ltd. Partnership Project,
4.19%<F2>, 5/7/98,
LOC Bank One 1,180 1,180
Revere, School District,
4.40%, 12/10/98 940 942
Reynoldsburg, GO,
4.15%, 7/15/98 900 901
Richland County, IDR,
Mansfield Motel Partnership,
4.19%<F2>, 5/7/98,
LOC Huntington National Bank 3,150 3,150
Rickenbacker,
Port Authority Revenue,
4.09%<F2>, 5/7/98,
LOC Bank One 3,200 3,200
Rossford, GO,
4.75%, 12/17/98 1,100 1,105
Salem, Hospital Revenue,
Community Hospital Project,
4.09%<F2>, 5/7/98,
LOC Marine Bank 3,600 3,600
Sandusky, GO,
4.25%, 7/8/98 300 300
School District,
Cash Flow Management,
Series B, 4.47%, 6/30/98 10,031 10,040
Scioto County,
VHA Center, Inc.
Capital Assets-B,
4.40%<F2>, 5/6/98, AMBAC 4,875 4,875
Scioto County,
VHA Center, Inc.
Capital Assets-C,
4.04%<F2>, 5/6/98, AMBAC 2,025 2,025
Seneca County,
Hospital Facilities Revenue,
St. Francis Home, Inc. Project,
4.09%<F2>, 5/7/98,
LOC National City Bank 2,100 2,100
Sharonville, IDR,
XTEK, Inc. Project,
4.19%<F2>, 5/7/98,
LOC Fifth Third Bank 600 600
Shelby, GO,
4.25%, 8/19/98 810 811
South Western,
City School District,
4.00%, 10/20/98 815 816
Stark County,
Health Care Facilities Revenue,
St. Joseph Hospice Project,
4.09%<F2>, 5/7/98,
LOC Bank One 2,225 2,225
State Air Quality,
3.45%, 5/13/98, FGIC 6,000 6,000
State Air Quality,
3.45%, 5/13/98,
LOC Bank of Nova Scotia 4,300 4,300
State Air Quality,
3.60%, 9/10/98, FGIC 5,470 5,470
State Air Quality,
3.75%, 8/11/98, FGIC 10,200 10,200
State Air Quality, PCR,
Series B, 4.24%<F2>, 5/1/98,
LOC Morgan (J.P.) 1,000 1,000
State Air Quality, PCR,
3.85%, 10/1/29<F3>,
LOC FNB Chicago 4,655 4,655
State Building Authority
Facilities Revenue,
4.00%, 9/1/98 1,200 1,202
State Building Authority
Facilities Revenue,
4.00%, 9/1/98 2,475 2,478
State Environmental
Improvement Revenue,
Newark Group
Industries, Inc. Project,
3.40%<F2>, 5/1/98,
LOC Chase Manhattan Bank 1,000 1,000
State Environmental
Improvement Revenue,
Newark Group
Industries, Inc. Project,
4.14%<F2>, 5/7/98,
LOC Chase Manhattan Bank 13,000 13,000
State Higher Education
Facilities Commission Revenue,
Higher Education--Mount
Vernon Nazarene,
4.14%<F2>, 5/7/98,
LOC National City Bank 900 900
State Higher Education
Facilities Commission Revenue,
Kenyon College Project,
4.14%<F2>, 5/6/98 5,900 5,900
State Higher Education
Facilities Commission Revenue,
Wilmington College Project,
4.09%<F2>, 5/7/98,
LOC Fifth Third Bank 2,895 2,895
State IDR,
Atlas Technicast Ltd. Project,
4.19%<F2>, 5/7/98,
LOC Bank One AMT 2,265 2,265
State IDR,
Best Atlas Ltd. Project,
4.19%<F2>, 5/7/98,
LOC Bank One 2,265 2,265
State IDR,
Cincinnati Riverfront,
4.29%<F2>, 5/7/98,
LOC PNC Bank AMT 440 440
State IDR, Hydro Tube Corp.,
Series IA, 4.30%<F2>, 5/6/98,
LOC National City Bank 650 650
State IDR, Kaufman's Bakery,
4.24%<F2>, 5/6/98,
LOC Bank One 1,510 1,510
State IDR, Middletown Compositing,
4.24%<F2>, 5/6/98,
LOC National City Bank 855 855
State IDR,
Series G, 4.24%<F2>, 5/6/98,
LOC Bank One 800 800
State IDR,
Series H, 4.24%<F2>, 5/7/98,
LOC Bank One 150 150
State IDR, Ware Industries, Inc.,
Series L, 4.24%<F2>, 5/6/98,
LOC Bank One 280 280
State Public Facilities
Commission, Higher
Education Capital Facilities,
Series II B, 4.63%, 12/1/98 1,000 1,005
State Public Facilities
Commission, Higher
Education Capital Facilities,
Series II-A, 5.20%, 5/1/99,
AMBAC 2,000 2,029
State Public Facilities
Commission, Mental
Health Facilities,
Series II-A, 4.63%, 12/1/98 500 503
State Water Development Authority,
3.45%, 5/12/98, FGIC 2,035 2,035
State Water Development
Authority, Cleveland Electric,
Series B, 4.09%<F2>, 5/6/98,
LOC First National
Bank of Chicago 8,100 8,100
State Water Development
Authority, PA Power Co. Project,
4.19%<F2>, 5/6/98,
LOC FNB Chicago 5,800 5,800
State Water Development
Authority, PCR,
Duquesne Light Co. Project,
3.85%, 10/1/28<F3>,
LOC FNB Chicago 19,000 19,000
State Water Development
Authority, Philip Morris
Co. Inc. Project,
4.14%<F2>, 5/6/98 15,000 15,000
State Water Development
Authority, Timken Co. Project,
4.19%<F2>, 5/6/98,
LOC Wachovia Bank 3,300 3,300
Streetsboro, GO,
4.15%, 10/9/98 1,580 1,581
Student Loan Funding Corp.,
Cincinnati Student
Loan Revenue,
4.04%<F2>, 5/6/98,
LOC National
Westminster Bank 9,700 9,700
Student Loan Funding Corp.,
Cincinnati Student
Loan Revenue,
4.04%<F2>, 5/6/98,
LOC National
Westminster Bank 11,100 11,100
Student Loan Funding Corp.,
Cincinnati Student
Loan Revenue,
4.04%<F2>, 5/7/98,
LOC National
Westminster Bank 6,200 6,200
Student Loan Funding Corp.,
Cincinnati Student
Loan Revenue,
4.00%<F2>, 5/6/98,
LOC Bank of America 11,535 11,535
Student Loan Funding Corp.,
Cincinnati, Student
Loan Revenue,
Series C, 5.45%, 7/1/98 5,125 5,140
Summit County, EDR,
4.26%, 9/1/12<F3> 455 455
Summit County, GO,
4.88%, 11/19/98 5,000 5,029
Summit County,
Hospital Facilitites Revenue,
Cuyahoga Falls
General Hospital,
4.14%<F2>, 5/7/98,
LOC Bank One 1,500 1,500
Summit County, IDR,
Delco Corp. Project,
4.29%<F2>, 5/7/98,
LOC National City Bank 1,700 1,700
Summit County, IDR,
Fiocca, Inc. Project,
4.29%<F2>, 5/7/98,
LOC Fifth Third Bank 2,375 2,375
Summit County, IDR,
Forest Manufacturing
Co. Project,
4.24%<F2>, 5/7/98,
LOC Fifth Third Bank 300 300
Summit County, IDR,
Forest Manufacturing
Co. Project,
4.19%<F2>, 5/7/98,
LOC Bank One 625 625
Summit County, IDR,
GO-JO Industries, Inc, Project,
4.09%<F2>, 5/7/98,
LOC Bank One 2,385 2,385
Summit County, IDR,
L & W Manufacturing Project,
3.90%<F2>, 10/1/06<F3>,
LOC Bank One 220 220
Summit County, IDR,
Raymond W King Jr. Project,
4.19%<F2>, 5/7/98,
LOC Bank One 935 935
Summit County, IDR,
SSP Fittings Corp. Project,
4.15%<F2>, 5/7/98,
LOC Bank One 1,620 1,620
Summit County, IDR,
Texler, Inc. Project,
3.85%<F2>, 5/1/98<F3>,
LOC Bank One 620 620
Summit County, IDR,
Triscari Project,
3.85%, 9/1/03<F3>,
LOC Bank One 360 360
Tallmadge, GO,
4.22%, 7/15/98 2,465 2,466
Tiffin, GO,
Sewer Improvements,
4.04%, 7/9/98 2,625 2,626
Tiffin, GO,
Sewer Improvements,
4.30%, 7/9/98 675 675
Toledo Lucas County,
4.34%<F2>, 5/7/98,
LOC PNC Bank 2,800 2,800
Toledo Lucas County,
3.55%, 5/29/98,
LOC Bank of Nova Scotia 6,700 6,700
Toledo Lucas County,
3.55%, 5/29/98,
LOC Bank of Nova Scotia 4,100 4,100
Toledo,
City Services Special Assessment,
4.04%<F2>, 5/7/98,
LOC Canadian Imperial Bank 1,000 1,000
Toledo, IDR,
Lucas County Port Authority,
Frostbite Brands, Inc. Project,
4.59%<F2>, 5/7/98,
LOC Old Kent Bank & Trust 2,110 2,110
Tri County School District, GO,
4.41%, 7/22/98 1,115 1,116
Troy, EDR, L & CP Corp. Project,
3.85%<F2>, 6/1/98,
LOC Societe Generale 1,685 1,685
Trumbull County, IDR,
Eliwood Engineered Casting,
4.34%<F2>, 5/7/98,
LOC Mellon Bank 7,000 7,000
Trumbull County, IDR,
McDonald Steel Corp Project,
4.29%<F2>, 5/7/98,
LOC PNC Bank 300 300
Twinsburg, IDR,
Weatherchem Corp. Project,
4.09%<F2>, 5/7/98,
LOC National City Bank 250 250
Union County, GO,
4.17%, 6/25/98 1,500 1,501
Upper Arlington, GO,
4.13%, 10/15/98 1,100 1,103
Vermilion, IDR,
Landover Properties Ltd.,
4.04%<F2>, 5/7/98,
LOC Bank One 1,490 1,490
Vinton County School District, GO,
4.37%, 7/21/98 2,255 2,258
Wadworth School District, GO,
4.23%, 8/4/98 1,400 1,402
Wadworth School District, GO,
4.38%, 8/4/98 1,300 1,302
Washington County, GO,
3.95%, 11/4/98 1,800 1,800
Wauseon, GO,
4.90%, 5/21/98 430 430
Wayne County,
Health Care Facilities Revenue,
West View Manor Project,
4.19%<F2>, 5/7/98,
LOC Fifth Third Bank 4,940 4,940
Wayne County, IDR,
Steiner Turf
Equipment, Inc. Project,
4.19%<F2>, 5/7/98,
LOC Bank One 1,340 1,340
West Clermont
School District, GO,
4.25%, 4/15/99 1,400 1,406
Westerville, EDR,
American Ceramic Society,
4.39%<F2>, 5/7/98,
LOC National City Bank 2,110 2,110
Westlake, IDR,
Logan Westlake Project,
4.24%<F2>, 5/7/98,
LOC Fifth Third Bank 1,700 1,700
Westlake, IDR,
Nordson Corp. Project,
4.04%<F2>, 5/7/98,
LOC Bayerische Vereinsbank 1,650 1,650
Westlake School District, GO,
4.39%, 6/10/98 2,250 2,251
Williams County, GO,
4.85%, 5/14/98 335 335
Williams County, IDR,
Letts Industries, Inc. Project,
4.14%<F2>, 5/7/98,
LOC NBD Bank 4,265 4,265
Willowick, GO,
4.20%, 7/23/98 700 700
Wilmington, GO,
4.26%, 12/21/98 1,200 1,203
Wood County, EDR,
Cast Masters, Inc. Acquisition,
4.36%<F2>, 5/7/98,
LOC Mid American
National Bank & Trust 2,515 2,515
Wood County, EDR,
Precision Aggregate II,
4.36%<F2>, 5/7/98,
LOC Mid American
National Bank & Trust 2,500 2,500
Wooster, GO,
3.88%, 10/15/98 3,000 3,000
Wooster, IDR,
Allen Group, Inc.,
4.29%<F2>, 5/6/98,
LOC Dresdner Bank AG 800 800
Wyoming, GO,
4.21%, 7/17/98 735 735
679,442
Total Municipal Bonds
(Amortized Cost $679,442) 679,442
Investment Companies (0.1%)
Ohio (0.1%):
Federated Ohio Municipal
Cash Trust Fund 640,043 640
Total Investment Companies
(Amortized Cost $640) 640
Total Investments
(Amortized Cost $680,082) <F1>--99.4% 680,082
Other assets in excess of liabilities 0.6% 4,086
TOTAL NET ASSETS--100.0% $684,168
<FN>
<F1> Cost and value for federal income tax and financial reporting purposes are the same.
<F2> Variable rate securities having liquidity agreements. The interest rate, which will change periodically,
is based upon an index of market interest rates. The rate reflected on the Schedule of Portfolio Investments
is the rate in effect at April 30, 1998. The date reflects the next rate change date.
<F3> Put and demand features exist allowing the Fund to require the repurchase of the investment within variable
time periods less than one year.
AMT--Alternative Minimum Tax Payer
EDR--Ecomonic Development Revenue
FNMA--Insured by Federal National Mortgage Assoc.
FSA--Insured by Financial Security Assurance
GNMA--Insured by Government National Mortgage Assoc.
GO--General Obligation
IDR--Industrial Development Revenue
LOC--Letter of Credit
PCR--Pollution Control Revenue
SPA--Standby Purchase Agreement
</FN>
See notes to financial statements.
</TABLE>
<TABLE>
THE VICTORY PORTFOLIOS Schedule of Investments
Limited Term Income Fund April 30, 1998
(Amounts in Thousands, Except Shares) (Unaudited)
<CAPTION>
Shares or
Principal Market
Security Description Amount Value
<S> <C> <C>
Asset Backed Securities (15.6%)
California Infrastructure
PG&E Funding,
Series 1997-1, Class A3,
6.15%, 6/25/02, CMO 2,000 $ 2,011
Caterpillar Financial
Asset Trust,
Series 1997A, Class A3,
6.45%, 5/25/03 3,000 3,040
Fleetwood Credit Corp
Grantor Trust,
Series 1994-B, Class A,
6.75%, 3/15/10, CMO 3,714 3,744
Fleetwood Credit Corp.,
Class A, 6.64%, 9/15/12 1,836 1,877
Lehman Large Loan,
Series 1997-LLI, Class A1,
6.79%, 6/12/04, CMO 1,573 1,609
Total Asset Backed Securities
(Cost $12,207) 12,281
Commercial Paper (7.1%)
Associates Corp., N.A.,
5.56%, 5/1/98 5,536 5,536
Total Commercial Paper (Cost $5,536) 5,536
Corporate Bonds (36.8%)
Banks (3.8%):
Chase Manhattan
Marine Owner Trust,
6.14%, 1/17/05 3,000 3,003
Brokerage Services (4.5%):
Lehman Brothers Holdings,
Senior Subordinated Note,
5.75%, 11/15/98 2,000 1,997
Merrill Lynch & Co., Inc.,
6.50%, 4/1/01 1,500 1,519
3,516
Chemicals--General (3.9%):
E.I. Dupont de Nemour, 6.50%, 9/1/02 3,000 3,053
Financial Services (7.9%):
Associates Corp. N.A.,
6.38%, 6/15/00 3,000 3,019
Ford Motor Credit Corp.,
6.85%, 8/15/00 3,000 3,052
General Motors Acceptance Corp.,
Global Bond,
6.75%, 2/7/02 100 102
6,173
Industrial Goods & Services (9.0%):
Burlington Resources, Inc.,
7.15%, 5/1/99 2,000 2,023
Mckesson Corp.,
6.60%, 3/1/00 5,000 5,043
7,066
Insurance (2.6%):
International Lease Finance Corp.,
8.35%, 10/1/98 2,000 2,020
Telecommunications (3.8%):
Ameritech Capital Funding,
6.13% 10/15/01 3,000 3,011
Utilities--Electric & Gas (1.3%):
Northern States Power Co.,
5.50%, 2/1/99 1,000 996
Total Corporate Bonds (Cost $28,741) 28,838
U.S. Government Mortgage Backed (21.4%)
Federal Home Loan Mortgage
Corp. (4.4%):
9.50%, 12/1/01, Pool #501384 2,272 2,382
8.50%, 7/1/21, Pool #555275 1,047 1,100
3,482
Federal National Mortgage
Assoc. (16.2%):
5.63%, 3/15/01 5,000 4,982
8.50%, 5/1/12, Pool #401621 212 221
9.00%, 3/1/25, Pool #297103 1,554 1,638
9.00%, 5/1/25, Pool #303389 4,909 5,174
7.00%, 9/1/27, Pool #397614 132 134
7.00%, 12/1/27, Pool #398127 200 202
7.00%, 12/1/27, Pool #398139 118 119
7.00%, 2/1/28, Pool #409997 201 203
12,673
Government National Mortgage
Assoc. (0.8%):
7.00%, 12/15/23, Pool #780577 361 366
7.50%, 8/15/27, Pool #456543 292 300
666
Total U.S. Government
Mortgage Backed (Cost $16,725) 16,821
U.S. Treasury Obligations (14.2%)
U.S Treasury Notes (12.3%):
5.00%, 1/31/99 3,802 3,788
6.25%, 5/31/99 3,700 3,727
6.63%, 3/31/02 2,004 2,071
9,586
U.S. Treasury Bonds (1.9%):
6.38%, 3/31/01 1,000 1,020
7.88%, 11/15/04 451 503
1,523
Total U.S. Treasury Obligations
(Cost $11,136) 11,109
Yankee Bonds (3.9%)
Canada (3.9%):
Quebec Province,
9.38%, 4/1/99 3,000 3,090
Total Yankee Bonds (Cost $3,148) 3,090
Total Investments (Cost $77,493) <F1>--99.0% 77,675
Other assets in excess of liabilities 1.0% 812
TOTAL NET ASSETS--100.0% $78,487
<FN>
<F1> Cost for federal income tax purposes differs from value by net unrealized appreciation of securities
as follows (amounts in thousands):
Unrealized appreciation $ 374
Unrealized depreciation (192)
Net unrealized appreciation $ 182
CMO--Collateralized Mortgage Obligations
</FN>
See notes to financial statements.
</TABLE>
<TABLE>
THE VICTORY PORTFOLIOS Schedule of Investments
Intermediate Income Fund April 30, 1998
(Amounts in Thousands, Except Shares) (Unaudited)
<CAPTION>
Shares or
Principal Market
Security Description Amount Value
<S> <C> <C>
Asset Backed Securities (12.2%)
Chase Manhattan
Auto Owner Trust,
6.25%, 11/15/00 3,450 $ 3,454
Chase Manhattan
Auto Owner Trust,
5.95%, 11/15/00 3,450 3,467
Copelco,
6.47%, 4/20/05 3,550 3,585
Equicredit Home
Equity Loan Trust,
Series 1997-3, Class A8,
6.41%, 12/15/04 2,210 2,213
Lehman Large Loan,
Series 1997-LLI, Class A1,
6.79%, 6/12/04, CMO 2,374 2,429
Morgan Stanley Capital I,
Series 1998-HF1, Class A2,
6.52%, 1/15/08, CMO 2,100 2,100
Premier Auto Trust,
Series 1997-1, Class A4,
6.35%, 4/6/02 3,300 3,342
Railcar Trust,
Series 92-1,
7.75%, 6/1/04 6,409 6,742
Toyota Auto Receivables
Guarantor Trust,
Series 1997-A, Class A,
6.45%, 4/15/02 2,382 2,401
Total Asset Backed Securities
(Cost $29,525) 29,733
Commercial Paper (0.5%)
Associates Corp., N.A.,
5.56%, 5/1/98 1,167 1,167
Total Commercial Paper (Cost $1,167) 1,167
Corporate Bonds (43.0%)
Automobiles (1.5%):
Daimler-Benz North America,
7.38%, 9/15/06 2,485 2,653
Ford Motor Company,
9.00%, 9/15/01 1,000 1,086
3,739
Banks (1.8%):
Bank of New York,
7.88%, 11/15/02 3,000 3,172
Wells Fargo & Co.,
6.25%, 4/15/08 1,100 1,085
4,257
Beverages (0.7%):
Coca-Cola Amatil Limited,
6.50%, 9/4/03 1,700 1,713
Broadcasting/Cable (1.7%):
Time Warner, Inc.,
8.11%, 8/15/06 3,800 4,142
Brokerage Services (3.2%):
Lehman Brothers Holdings,
6.00%, 2/26/01 1,375 1,368
Lehman Brothers Holdings,
Senior Subordinated Note,
5.75%, 11/15/98 5,000 4,993
Salomon Smith Barney Holdings,
6.13%, 1/15/03 1,400 1,383
7,744
Electronics (1.8%):
Hitachi Credit Corp.,
5.88%, 12/28/00 4,460 4,415
Entertainment (0.7%):
Loews Corporation,
6.75%, 12/15/06 1,725 1,742
Financial Services (7.9%):
Associates Corp., N.A.,
6.00%, 4/15/03 1,050 1,042
Bankers Trust,
6.70%, 10/1/07 1,500 1,515
CNA Financial,
6.50%, 4/15/05 1,025 1,020
Conseco, Inc.,
6.40%, 2/10/03 1,350 1,331
EOP Operating LP,
6.75%, 2/15/08 <F2> 3,120 3,108
Equitable Companies, Inc.,
6.50%, 4/1/08 1,980 1,973
Grand Metro Financial,
6.50%, 9/15/99 5,000 5,026
The Money Store Home
Equity Trust,
7.50%, 1/15/26 3,964 4,134
19,149
Hospital & Nursing Equipment
& Supplies (0.5%):
U.S. Surgical Corp.,
7.25%, 3/15/08 1,295 1,292
Industrial Goods & Services (5.3%):
John Deere Capital Corp.,
5.85%, 1/15/01 1,450 1,445
Lockheed Martin,
7.20%, 5/1/36 1,600 1,704
New America, Inc.,
6.63%, 1/9/08 3,425 3,378
Racers-Kellogg-98-1,
5.75%, 2/2/01 <F2> 1,090 1,083
USX Corp., 7.20%, 2/15/04 5,000 5,175
12,785
Insurance (2.7%):
Liberty Mutual,
8.20%, 5/4/07 <F2> 2,300 2,541
Metropolitan Life Insurance Co.,
6.30%, 11/01/03 <F2> 1,500 1,491
Prudential Insurance,
7.65%, 7/1/07 2,300 2,455
6,487
Investment Company (1.2%):
D.R. Investments,
7.10%, 5/15/02 2,750 2,815
Leasing (1.0%):
Hertz Corp.,
6.30%, 11/15/06 2,500 2,503
Oil & Gas Exploration,
Production & Services (1.7%):
Standard Oil,
9.00%, 6/1/19 4,000 4,100
Retail (4.5%):
Dayton Hudson Co.,
6.80%, 10/1/01 5,000 5,081
J.C. Penney & Co.,
7.60%, 4/1/07 800 854
Sears Roebuck & Co.,
6.86%, 8/6/01 5,000 5,094
11,029
Telecommunications (4.8%):
Telecommunications, Inc.,
8.25%, 1/15/03 6,300 6,772
U.S. West Capital Funding,
6.31%, 11/1/05 3,000 3,019
WorldCom, Inc.,
7.55%, 4/1/04 1,725 1,809
11,600
Utilities--Electric (1.2%):
Western Resources, Inc.,
6.88%, 8/1/04 2,800 2,870
Utilities--Natural Gas (0.8%):
KN Energy, Inc.,
6.65%, 3/1/05 2,000 2,003
Total Corporate Bonds (Cost $103,358) 104,385
U.S. Government Agencies (4.8%)
Federal Home Loan Bank (2.0%):
5.63%, 3/19/01 3,420 3,404
5.75%, 4/30/01 1,590 1,588
4,992
Federal Home Loan Mortgage
Corp. (1.3%):
5.75%, 4/15/08 3,140 3,084
Federal National Mortgage
Assoc. (1.5%):
6.54%, 10/3/05 3,410 3,525
Total U.S. Government Agencies (Cost $11,668) 11,601
U.S. Government Mortgage Backed (14.4%)
Federal Home Loan Mortgage
Corp. (3.2%):
6.00%, 2/1/11, Pool #G10454 966 955
8.50%, 6/1/12, Pool #G10783 2,764 2,874
7.50%, 9/15/20 536 540
8.50%, 7/1/21, Pool #555275 3,202 3,365
7,734
Federal National Mortgage
Assoc. (4.1%):
6.00%, 6/1/11, Pool #313121 3,658 3,610
8.50%, 5/1/12, Pool #401621 647 676
7.50%, 7/25/18 407 414
8.50%, 11/1/18, Pool #313280 1,952 2,037
7.50%, 5/1/24, Pool #328093 1,173 1,203
7.00%, 9/1/27, Pool #397614 405 409
7.00%, 12/1/27, Pool #398139 361 365
7.00%, 12/1/27, Pool #398127 616 622
7.00%, 2/1/28, Pool #409997 617 624
9,960
Government National Mortgage
Assoc. (7.1%):
9.00%, 12/15/09, Pool #780009 1,776 1,901
8.50%, 7/15/10, Pool #780516 1,753 1,853
7.00%, 12/15/23, Pool #780577 2,698 2,740
7.00%, 6/15/24, Pool #780502 1,068 1,085
7.00%, 2/15/26, Pool #421684 629 636
7.00%, 11/15/26, Pool #780463 5,181 5,261
7.00%, 12/15/26, Pool #780485 1,718 1,745
7.50%, 7/15/27, Pool #447756 1,174 1,207
7.50%, 8/15/27, Pool #455273 3 3
7.50%, 8/15/27, Pool #456543 876 900
7.50%, 10/15/27, Pool #453371 5 5
17,336
Total U.S. Government Mortgage Backed
(Cost $34,829) 35,030
U.S. Treasury Obligations (23.8%)
U.S Treasury Notes (14.2%):
6.25%, 5/31/99 17,781 17,909
5.38%, 2/15/01 3,710 3,688
6.63%, 3/31/02 4,664 4,820
5.75%, 4/30/03 2,340 2,351
5.50%, 2/15/08 5,655 5,583
34,351
U.S. Treasury Bonds (9.6%):
6.00%, 8/15/00 11,597 11,694
6.38%, 3/31/01 4,712 4,805
7.88%, 11/15/04 3,270 3,648
7.00%, 7/15/06 2,850 3,076
23,223
Total U.S. Treasury Obligations (Cost $57,609) 57,574
Total Investments (Cost $238,156) <F1>--98.7% 239,490
Other assets in excess of liabilities 1.3% 3,251
TOTAL NET ASSETS--100.0% $242,741
<FN>
<F1> Cost for federal income tax purposes differs from value by net unrealized appreciation of securities
as follows (amounts in thousands):
Unrealized appreciation $1,989
Unrealized depreciation (655)
Net unrealized appreciation $1,334
<F2> 144a security which is restricted as to resale to institutional investors.
CMO--Collateralized Mortgage Obligation
</FN>
See notes to financial statements.
</TABLE>
<TABLE>
THE VICTORY PORTFOLIOS Schedule of Investments
Fund for Income April 30, 1998
(Amounts in Thousands, Except Shares) (Unaudited)
<CAPTION>
Shares or
Principal Market
Security Description Amount Value
<S> <C> <C>
Asset Backed Securities (32.7%)
Equicredit Home Equity
Loan Trust,
Series 1997-3, Class A7,
6.93%, 2/15/29, CMO 800 $ 801
General Electric Capital
Mortgage Services, Inc.,
7.00%, 3/25/08, CMO 1,000 1,002
Green Tree Financial Corp.,
8.95%, 03/15/20, CMO 500 546
Housing Securities, Inc.,
7.25%, 4/25/08, CMO 1,638 1,665
Prudential Home
Mortgage Securities,
7.00%, 1/25/08, CMO 1,115 1,129
Resolution Trust Corp.,
8.20%, 11/25/21, CMO 1,286 1,282
Salomon Brothers Mortgage
Securities VII,
Series 1996-LB2, Class A7,
7.65%, 10/25/26, CMO 654 677
The Money Store Home
Equity Trust,
Series 1995-B, Class A5,
7.23%, 12/15/20, CMO 315 323
Total Asset Backed Securities
(Cost $7,304) 7,425
Commercial Paper (2.9%)
Associates Corp., N.A.,
5.56%, 5/1/98 656 656
Total Commercial Paper (Cost $656) 656
U.S. Government Agencies (7.6%)
Federal Home Loan Bank (3.0%):
5.68%, 12/3/07 675 679
Federal National Mortgage
Assoc. (4.6%):
8.50%, 2/1/05,
Callable 2/1/00 @ 100 1,000 1,044
Total U.S. Government Agencies
(Cost $1,742) 1,723
U.S. Government Mortgage Backed (53.6%)
Federal Home Loan Mortgage
Corp. (9.4%):
9.50%, 12/1/01, Pool #501384 682 714
12.00%, 10/1/10, Pool #170038 6 7
12.00%, 7/1/14, Pool #250291 1 2
12.00%, 7/1/14, Pool #256065 2 2
10.00%, 2/1/17, Pool #293015 20 22
8.50%, 5/1/17, Pool #555338 429 451
9.50%, 8/1/19, Pool #537138 124 132
10.00%, 9/1/19, Pool #539709 98 106
9.50%, 11/1/19, Pool #543648 20 21
9.50%, 11/1/19, Pool #541208 97 103
8.50%, 7/1/21, Pool #555275 97 102
9.50%, 12/1/22, Pool #G00150 449 476
2,138
Federal National Mortgage
Assoc. (8.0%):
9.25%, 3/25/18 1,172 1,265
8.25%, 3/25/04 92 92
8.50%, 5/1/12, Pool #401621 123 129
13.00%, 12/1/12, Pool #001418 34 38
10.00%, 5/1/13, Pool #020396 7 8
12.00%, 8/1/13, Pool #003512 12 13
10.00%, 1/1/14, Pool #016880 8 9
10.00%, 8/1/17, Pool #056613 5 5
10.00%, 8/1/17, Pool #050002 11 11
10.00%, 10/1/17, Pool #050016 3 3
10.00%, 10/1/17, Pool #055662 11 11
10.00%, 11/1/17, Pool #056339 4 4
10.00%, 1/1/18, Pool #055629 4 4
10.00%, 1/1/18, Pool #058689 5 6
10.00%, 1/1/18, Pool #058411 3 3
10.50%, 1/1/18, Pool #057486 10 11
10.00%, 2/1/18, Pool #058906 19 20
9.50%, 1/1/19, Pool #069358 17 18
7.00%, 9/1/27, Pool #397614 35 36
7.00%, 12/1/27, Pool #398127 54 54
7.00%, 12/1/27, Pool #398139 31 32
7.00%, 2/1/28, Pool #409997 54 54
1,826
Government National Mortgage
Assoc. (36.2%):
9.00%, 10/15/09, Pool #780592 1,238 1,329
11.00%, 9/20/14, Pool #120105 62 68
10.50%, 2/15/16, Pool #147054 29 31
10.00%, 3/15/16, Pool #150768 47 51
10.00%, 6/15/17, Pool #220728 34 37
9.50%, 8/15/17, Pool #219729 35 37
9.50%, 8/15/17, Pool #206258 28 30
10.00%, 10/15/17, Pool #235046 72 78
10.00%, 1/15/18, Pool #222734 39 42
10.00%, 1/15/18, Pool #231248 15 16
10.00%, 2/15/18, Pool #225849 9 10
10.00%, 3/15/18, Pool #250776 11 12
9.50%, 5/15/18, Pool #227730 292 314
9.50%, 6/15/18, Pool #251316 36 39
10.00%, 7/15/18, Pool #232909 66 72
10.00%, 9/15/18, Pool #257398 63 68
10.00%, 9/15/18, Pool #247628 64 69
10.00%, 9/15/18, Pool #217546 27 30
10.00%, 9/15/18, Pool #261759 49 53
10.00%, 11/15/18, Pool #226254 217 236
10.00%, 1/15/19, Pool #207704 66 71
10.25%, 3/15/19, Pool #910650 46 50
10.25%, 6/15/19, Pool #911585 12 13
9.50%, 10/15/19, Pool #279064 116 125
10.00%, 7/15/20, Pool #293223 140 152
9.50%, 9/20/20, Pool #001471 445 476
10.00%, 6/15/21, Pool #304825 210 228
7.00%, 12/15/23, Pool #780577 572 581
7.00%, 12/15/23, Pool #780386 1,034 1,050
7.50%, 12/15/23, Pool #780474 2,041 2,106
10.00%, 8/15/25, Pool #405484 491 534
8.00%, 8/15/27, Pool #436443 35 37
8.00%, 8/15/26, Pool #432932 35 36
7.50%, 8/15/27, Pool #456543 63 64
8.00%, 10/15/27, Pool #449186 39 40
8.00%, 10/15/27, Pool #449189 39 41
8,225
Total U.S. Government Mortgage Backed
(Cost $11,905) 12,190
U.S. Treasury Obligations (2.3%)
0.00%, 8/15/20 2,000 522
Total U.S. Treasury Obligations (Cost $418) 522
Total Investments (Cost $22,025) <F1>--99.1% 22,516
Other assets in excess of liabilities 0.9% 214
TOTAL NET ASSETS--100.0% $22,730
<FN>
<F1> Cost for federal income tax purposes differs from value by net unrealized appreciation of securities
as follows (amounts in thousands):
Unrealized appreciation $548
Unrealized depreciation (57)
Net unrealized appreciation $491
CMO--Collateralized Mortgage Obligation
</FN>
See notes to financial statements.
</TABLE>
<TABLE>
THE VICTORY PORTFOLIOS Schedule of Investments
Government Mortgage Fund April 30, 1998
(Amounts in Thousands, Except Shares) (Unaudited)
<CAPTION>
Shares or
Principal Market
Security Description Amount Value
<S> <C> <C>
Discount Note (2.7%)
Federal Home Loan Mortgage
Corp. (2.7%):
0.00%, 5/1/98 2,749 $ 2,749
Total Discount Note (Cost $2,749) 2,749
U.S. Government Agencies (3.8%)
Federal Home Loan Bank (3.8%):
5.68%, 12/3/07 3,825 3,849
Total U.S. Government Agencies
(Cost $3,822) 3,849
U.S. Government Mortgage Backed (90.1%)
Federal Home Loan Mortgage
Corp. (13.6%):
8.50%, 5/1/17, Pool #555338 943 992
9.00%, 6/1/19, Pool #555324 4,008 4,246
9.50%, 8/1/21, Pool #D24289 98 104
6.25%, 5/15/27,
Series 2030 D 3,691 3,656
7.00%, 3/1/28, Gold Pool #C00592 4,840 4,899
13,897
Federal National Mortgage
Assoc. (19.5%):
6.50%, 4/1/12, Pool #125477 85 86
8.50%, 5/1/12, Pool #401621 4,004 4,181
6.00%, 2/1/13, Pool #417022 1,469 1,447
6.00%, 3/1/13, Pool #421248 589 580
6.00%, 4/1/13, Pool #402299 1,515 1,493
8.00%, 5/1/17, Pool #50000 830 857
8.00%, 2/1/23, Pool #190203 1,513 1,571
7.00%, 9/1/27, Pool #397614 956 966
7.00%, 12/1/27, Pool #398139 879 888
6.50%, 1/1/28, Pool #398188 2,380 2,355
6.50%, 2/1/28, Pool #416632 2,214 2,191
6.50%, 2/12/28, Pool #413517 3,378 3,343
19,958
Government National Mortgage
Assoc. (57.0%):
9.00%, 10/15/09, Pool #780592 924 992
9.50%, 4/15/10, Pool #780142 3,075 3,330
8.50%, 7/15/10, Pool #780516 4,328 4,573
9.50%, 11/15/17, Pool #267832 1,172 1,261
9.50%, 1/15/19, Pool #258274 141 152
8.50%, 12/15/19, Pool #282716 243 255
8.50%, 2/15/20, Pool #284049 17 18
9.50%, 5/15/20, Pool #288719 623 671
9.00%, 3/15/21, Pool #304622 865 921
8.50%, 5/15/21, Pool #300373 43 45
9.00%, 5/15/21, Pool #296005 520 554
9.50%, 6/15/21, Pool #302940 1,028 1,106
7.50%, 7/15/23, Pool #359786 3,112 3,194
8.00%, 8/15/23, Pool #362066 1,092 1,132
7.00%, 10/15/23, Pool #348278 2,284 2,310
7.00%, 12/15/23, Pool #780577 7,070 7,178
7.00%, 12/15/23, Pool #370993 3,354 3,393
7.00%, 12/15/23, Pool #780386 1,035 1,051
7.50%, 12/15/23, Pool #780598 220 227
7.50%, 12/15/23, Pool #780474 5,094 5,251
7.00%, 1/15/24, Pool #371006 2,323 2,350
7.50%, 1/15/24, Pool #264236 2,197 2,255
7.00%, 2/15/26, Pool #421684 1,904 1,927
7.00%, 11/15/26, Pool #780463 2,347 2,383
7.00%, 12/15/26, Pool #780485 3,348 3,399
7.50%, 8/15/27, Pool #456543 1,730 1,777
7.50%, 12/15/27, Pool #461605 1,214 1,247
7.50%, 2/15/28, Pool #467669 3,083 3,168
7.50%, 2/15/28, Pool #410449 2,024 2,080
6.50%, 4/15/28, Pool #442331 141 140
58,340
Total U.S. Government Mortgage Backed
(Cost $92,249) 92,195
U.S. Treasury Obligations (2.6%)
U.S Treasury Notes (2.6%):
6.25%, 5/31/99 550 554
6.13%, 9/30/00 4 4
5.38%, 2/15/01 50 50
5.75%, 4/30/03 1,068 1,073
5.50%, 2/15/08 1,000 987
Total U.S. Treasury Obligations (Cost $2,668) 2,668
Total Investments (Cost $101,488) <F1>--99.2% 101,461
Other assets in excess of liabilities 0.8% 818
TOTAL NET ASSETS--100.0% $102,279
<FN>
<F1> Cost for federal income tax purposes differs from value by net unrealized appreciation of securities
as follows (amounts in thousands):
Unrealized appreciation $ 279
Unrealized depreciation (306)
Net unrealized appreciation $ 27
</FN>
See notes to financial statements.
</TABLE>
<TABLE>
THE VICTORY PORTFOLIOS Schedule of Investments
Investment Quality Bond Fund April 30, 1998
(Amounts in Thousands, Except Shares) (Unaudited)
<CAPTION>
Shares or
Principal Market
Security Description Amount Value
<S> <C> <C>
Asset Backed Securities (5.2%)
Equicredit Home Equity
Loan Trust,
Series 1997-3, Class A7,
6.93%, 2/15/29 1,100 $ 1,102
Equicredit Home Equity
Loan Trust,
Series 1997-3, Class A8,
6.41%, 12/15/04 1,130 1,132
Equicredit Home Equity
Loan Trust,
Series 1998-1, Class A6F,
6.25%, 12/15/07 1,035 1,028
Lehman Large Loan,
Series 1997--LLI, Class A1,
6.79%, 6/12/04, CMO 2,374 2,429
Morgan Stanley Capital I,
Series 1998--HF1, Class A2,
6.52%, 1/15/08, CMO 1,500 1,500
The Money Store Home
Equity Trust,
Series 1997-B, Class A8,
6.90%, 7/15/38 1,800 1,831
Total Asset Backed Securities
(Cost $8,994) 9,022
Commercial Paper (1.4%)
Financial Services (1.4%):
Associates Corp., N.A.,
5.56%, 5/1/98 2,412 2,412
Total Commercial Paper (Cost $2,412) 2,412
Corporate Bonds (30.4%)
Agriculture & Livestock (0.9%):
Cargill Inc.,
5.95%, 5/15/37,
Putable 5/15/99 @ 100 <F2> 1,500 1,508
Automobiles (1.1%):
Daimler-Benz
North America Corp.,
7.38%, 9/15/06, MTN 775 827
Ford Motor Co.,
9.00%, 9/15/01 1,000 1,087
1,914
Banks (1.9%):
Bankers Trust New York Corp.,
Series A, 6.70%, 10/1/07, MTN 525 530
First Union Corp.,
9.45%, 6/15/99 1,020 1,056
Nationsbank,
6.60%, 5/15/10 1,000 1,004
Wells Fargo & Co.,
6.25%, 4/15/08 750 740
3,330
Brokerage Services (1.6%):
Lehman Brothers Holdings,
7.38%, 5/15/04 1,675 1,742
Morgan Stanley Group, Inc.,
5.63%, 3/1/99 1,000 997
2,739
Entertainment (0.7%):
Loews Corp.,
6.75%, 12/15/06 1,150 1,162
Financial Services (6.5%):
Associates Corp., N.A.,
6.00%, 4/15/03 750 744
Chrysler Financial Corp.,
6.09%, 4/6/01, MTN 900 900
Conseco, Inc.,
6.40%, 2/10/03 950 937
EOP Operating LP,
6.75%, 2/15/08, <F2> 1,700 1,692
First Union,
8.04%, 12/1/26,
Callable 12/1/06 @ 104 1,100 1,176
Lumbermans Mutual,
8.30%, 12/1/37, <F2> 575 611
NBG Finance PLC,
6.51%, 6/24/07,
Callable 6/24/02 @ 100 1,140 1,129
Republic New York Corp.,
7.53%, 12/4/26,
Callable 12/4/06 @ 104 1,000 1,029
Tokai Preferred Capital Co. LLC,
9.98%, 12/29/49,
Callable 6/30/08 @ 100 <F2> 1,700 1,680
Transamerica Capital III,
7.63%, 11/15/37, <F2> 1,525 1,576
11,474
Industrial Goods & Services (5.8%):
Dana Corp.,
7.00%, 3/15/28 670 672
Dupont E I de Nemours & Co.,
6.50%, 1/15/28 1,150 1,121
Georgia-Pacific Corp.,
9.95%, 6/15/02 1,500 1,681
Lockheed Martin,
7.20%, 5/1/36 550 586
Nabisco, Inc.,
6.00%, 2/15/01 1,150 1,140
Racers Kellogg,
5.75%, 2/2/01, <F2> 750 745
Sony Corp.,
6.13%, 3/4/03 500 499
US Surgical Corp.,
7.25%, 3/15/08 935 933
USX Corp.,
7.20%, 2/15/04 1,500 1,553
Weyerhaeuser Co.,
6.95%, 10/1/27 1,250 1,245
10,175
Insurance (3.6%):
Liberty Mutual,
8.20%, 5/4/07 <F2> 2,300 2,540
Metropolitan Life Insurance Co.,
6.30%, 11/1/03 <F2> 2,000 1,988
Prudential Insurance Co.,
8.30%, 7/1/25 <F2> 1,545 1,723
6,251
Oil-Integrated Companies (0.3%):
Occidental Petroleum,
7.20%, 4/1/28 455 453
Publishing (2.8%):
News America Holdings,
7.75%, 12/1/45 1,750 1,827
Time Warner, Inc.,
7.75%, 6/15/05 2,200 2,334
Time Warner, Inc.,
9.15%, 2/1/23 575 704
4,865
Retail (2.1%):
Dayton Hudson Co., 6.40%, 2/15/03 2,000 1,998
J.C. Penney & Co., 7.60%, 4/1/07 1,600 1,708
3,706
Telecommunications (1.9%):
Telecommunications, Inc.,
9.80%, 2/1/12 2,600 3,253
Utilities--Electric (0.6%):
Western Resources, Inc.,
6.88%, 8/1/04 1,000 1,025
Utilities--Gas (0.6%):
KN Energy, Inc.,
7.25%, 3/1/28 950 954
Total Corporate Bonds (Cost $52,391) 52,809
U.S. Government Agencies (3.3%)
Federal Home Loan Bank (0.7%):
5.75%, 4/30/01 1,175 1,174
Federal National Mortgage Assoc.
(2.6%):
5.63%, 3/15/01 1,120 1,116
6.55%, 9/12/05 3,300 3,414
4,530
Total U.S. Government Agencies
(Cost $5,699) 5,704
U.S. Government Mortgage Backed (33.4%)
Federal Home Loan Mortgage
Corp. (7.3%):
7.50%, 4/1/07, Gold Pool #E35216 581 597
8.50%, 6/1/12, Gold Pool #G10783 1,474 1,533
9.00%, 6/1/19, Pool #555324 1,788 1,894
8.50%, 7/1/21, Pool #555275 2,217 2,329
6.25%, 5/15/27,
Series 2030 D 1,708 1,692
7.00%, 3/1/28, Gold Pool #C00592 2,218 2,245
7.00%, 5/1/28 2,370 2,400
12,690
Federal National Mortgage
Assoc. (6.3%):
8.50%, 5/1/12, Pool #401621 448 468
6.00%, 2/1/13, Pool #417022 1,986 1,957
6.00%, 3/1/13, Pool #421248 797 785
6.00%, 4/1/13, Pool #402299 2,049 2,018
7.00%, 9/1/27, Pool #397614 818 827
7.00%, 12/1/27, Pool #398127 1,261 1,275
7.00%, 12/1/27, Pool #398139 745 753
6.50%, 1/1/28, Pool #398188 811 803
6.50%, 2/1/28, Pool #416632 755 748
7.00%, 2/1/28, Pool #409997 1,261 1,275
10,909
Government National Mortgage
Assoc. (19.8%):
8.50%, 7/15/10, Pool #780516 3,301 3,488
9.00%, 2/15/17, Pool #182619 867 923
9.00%, 12/15/19, Pool #284544 669 713
6.50%, 7/15/23, Pool #357168 763 757
7.00%, 12/15/23, Pool #780468 4,320 4,386
7.00%, 12/15/23, Pool #780577 3,919 3,979
7.50%, 12/15/23, Pool #780359 2,934 3,024
7.50%, 12/15/23, Pool #780359 2,997 3,088
7.00%, 6/15/24, Pool #780502 3,360 3,412
7.50%, 11/15/24, Pool #780467 1,922 1,981
7.00%, 2/15/26, Pool #421684 1,159 1,173
7.00%, 11/15/26, Pool #780463 1,369 1,390
7.50%, 7/15/27, Pool #447756 833 856
7.50%, 8/15/27, Pool #455273 181 186
7.50%, 8/15/27, Pool #456543 605 622
7.50%, 10/15/27, Pool #453371 319 327
7.50%, 12/15/27, Pool #461605 215 221
7.50%, 2/15/28, Pool #410449 691 710
7.50%, 2/15/28, Pool #467669 1,051 1,080
6.50%, 4/15/28, Pool #442331 1,916 1,899
34,215
Total U.S. Government Mortgage Backed
(Cost $57,521) 57,814
U.S. Treasury Notes (24.1%)
6.25%, 7/31/98 7,725 7,746
6.25%, 5/31/99 7,705 7,761
6.00%, 8/15/00 3,596 3,626
6.38%, 3/31/01 3,507 3,576
6.63%, 3/31/02 2,638 2,726
5.75%, 4/30/03 1,666 1,674
7.88%, 11/15/04 2,021 2,255
5.50%, 2/15/08 3,710 3,663
6.63%, 2/15/27 5,831 6,318
6.13%, 11/15/27 2,390 2,448
Total U.S. Treasury Notes (Cost $41,833) 41,793
Yankee Bonds (0.7%)
Storage (0.7%):
Corp Andina De Fomento,
6.75%, 3/15/05 1,305 1,295
Total Yankee Bonds (Cost $1,300) 1,295
Total Investments (Cost $170,150) <F1>--98.5% 170,849
Other assets in excess of liabilities 1.5% 2,604
TOTAL NET ASSETS--100.0% 173,453
<FN>
<F1> Cost for federal income tax purposes differs from value by net unrealized appreciation of securities
as follows (amounts in thousands):
Unrealized appreciation $1,273
Unrealized depreciation (574)
Net unrealized appreciation $ 699
<F2> 144a security which is restricted as to resale to institutional investors.
CMO--Collateralized Mortgage Obligation
MTN--Medium Term Note
</FN>
See notes to financial statements.
</TABLE>
<TABLE>
THE VICTORY PORTFOLIOS Schedule of Investments
National Municipal Bond Fund April 30, 1998
(Amounts in Thousands, Except Shares) (Unaudited)
<CAPTION>
Shares or
Principal Market
Security Description Amount Value
<S> <C> <C>
Municipal Bonds (89.2%)
Alabama (1.9%):
State Board of Education,
Bevill State Community College,
4.25%, 9/1/01, AMBAC 240 $ 239
State Board of Education,
Bevill State Community College,
4.88%, 9/1/08,
Callable 9/1/07 @ 102, AMBAC 100 100
State Board of Education,
Bevill State Community College,
5.00%, 9/1/09,
Callable 9/1/07 @ 102, AMBAC 245 246
State Board of Education,
Bevill State Community College,
5.10%, 9/1/10,
Callable 9/1/07 @ 102, AMBAC 210 211
State Board of Education,
Bevill State Community College,
5.13%, 9/1/11,
Callable 9/1/07 @ 102, AMBAC 250 251
1,047
Alaska (0.5%):
Anchorage, Series B, GO,
5.25%, 10/1/02, FGIC 250 258
Arizona (10.3%):
Maricopa County School
District No. 11, GO,
Projects of 1996--Series A,
4.80%, 7/1/07, AMBAC 600 606
Maricopa County School
District No. 79, GO,
Litchfield Elementary,
Projects of 1995--Series A,
5.00%, 7/1/03, FGIC 125 128
Maricopa County Unified
School District, No. 95,
Queens Creek, GO, Series A,
5.20%, 7/1/05, AMBAC 125 130
Mohave County Unified
School District, GO,
4.50%, 7/1/08, FGIC 350 344
Navajo County Unified
School District, GO, Series A,
5.00%, 7/1/06, MBIA 375 386
Pima County Industrial
Development Authority,
5.00%, 4/1/04, MBIA 1,000 1,026
Pima County Industrial
Development Authority,
5.25%, 4/1/06, MBIA 1,000 1,039
Pima County Unified
School District, GO,
3.75%, 7/1/98, FGIC 790 790
Pima County Unified
School District, GO,
0.00%, 7/1/98, FGIC 170 169
Pinal County School
District, Series A, GO,
5.40%, 7/1/07, FGIC 270 285
Pinal County University,
Series B, GO,
4.50%, 7/1/06, FGIC 150 149
Yuma County School
District, Series A, GO,
6.00%, 7/1/08, MBIA 600 668
5,720
Arkansas (3.3%):
State Development Finance
Authority, Drivers'
License Revenue,
4.60%, 6/1/06, FGIC 500 496
Texarkana Public Facilities
Board, Waterworks
Facilities Revenue,
4.90%, 9/1/05, FGIC 570 581
Texarkana Public Facilities
Board, Waterworks
Facilities Revenue,
5.00%, 9/1/07, FGIC 250 256
Texarkana Public Facilities
Board, Waterworks
Facilities Revenue,
5.13%, 9/1/09,
Callable 9/1/07 @ 100, FGIC 460 471
1,804
California (0.6%):
Walnut Valley Unified
School District,
Series A, GO,
6.85%, 8/1/07, MBIA 300 350
Colorado (2.8%):
State Board of Agriculture,
5.00%, 3/1/11,
Callable 3/1/07 @ 101, AMBAC 500 500
University of Northern Colorado,
Auxiliary Facilities System,
5.60%, 6/1/24,
Callable 6/1/07 @ 100, MBIA 1,000 1,022
1,522
Connecticut (0.4%):
State, Special Tax Obligation
Revenue Bond, Series B,
6.00%, 9/1/06 200 219
District of Columbia (2.8%):
Georgetown University Revenue,
7.15%, 4/1/21,
Callable 4/1/99 @ 102 1,500 1,568
Florida (3.5%):
Indian Trace Community
Development District,
Water Management Special
Benefit Assessment,
5.00%, 5/1/09,
Callable 5/1/07 @ 101, MBIA 725 742
Indian Trace Community
Development District,
Water Management Special
Benefit Assessment,
5.00%, 5/1/11,
Callable 5/1/07 @ 101, MBIA 1,000 1,006
Orlando Utilities Commission,
Water & Electric Revenue,
5.80%, 10/1/06 150 163
1,911
Georgia (0.9%):
South Fulton Municipal
Regional Jail,
5.20%, 12/1/05, MBIA 250 260
Upper Oconee Basin
Water Authority,
5.25%, 7/1/27,
Callable 7/1/08 @ 102, FGIC 250 246
506
Hawaii (2.7%):
Honolulu City, GO,
6.00%, 11/1/05, MBIA 1,385 1,504
Idaho (2.0%):
State Building Authority
Building Revenue,
4.75%, 9/1/25,
Callable 9/1/08 @ 100, MBIA 1,215 1,106
Illinois (10.4%):
Chicago Public Building
Commission,
6.05%, 1/1/06,
Callable 1/1/05 @ 100, AMBAC 250 270
Cicero, Series A, GO,
5.35%, 12/1/06, AMBAC 530 553
Northlake, Tax Increment, GO,
5.00%, 12/1/04, MBIA 500 515
Southern Illinois University,
Housing & Auxiliary
Facilities System,
5.00%, 4/1/05, MBIA 100 102
Southern Illinois University,
Housing & Auxiliary
Facilities System,
5.00%, 4/1/08,
Callable 4/1/07 @ 102, MBIA 200 202
Southern Illinois University,
Housing & Auxiliary
Facilities System,
5.00%, 4/1/06, MBIA 125 127
State Educational
Facilities Authority,
Shedd Aquarium Society,
4.85%, 7/1/05, AMBAC 500 506
State Health Facilities Authority,
5.55%, 10/1/06, FGIC 1,000 1,055
State Health Facilities Authority,
5.60%, 10/1/07, FGIC 2,310 2,450
5,780
Indiana (1.4%):
University South Indiana Revenue,
4.65%, 10/1/07, FGIC 500 493
Westfield Elementary School
Building Corp.,
5.00%, 7/15/01, AMBAC 280 286
779
Iowa (3.9%):
State Finance Authority,
Hospital Facility Revenue,
Trinity Regional
Hospital Project,
5.00%, 7/1/02, FSA 550 561
State Finance Authority,
Hospital Facility Revenue,
Trinity Regional
Hospital Project,
5.10%, 7/1/03, FSA 585 600
State Finance Authority,
Housing Health Care,
Wesley Retirement
Services, Inc.,
4.10%<F2>, 4/1/05,
LOC Norwest Bank 1,000 1,000
2,161
Kansas (0.6%):
Haysville,
Water & Wastewater Utility,
4.25%, 10/1/98, FSA 110 110
Haysville,
Water & Wastewater Utility,
4.50%, 10/1/99, FSA 105 106
Haysville,
Water & Wastewater Utility,
4.60%, 10/1/00, FSA 130 132
348
Michigan (2.5%):
Byron Center, GO,
5.40%, 5/1/07, MBIA 242 257
Byron Center, GO,
5.40%, 5/1/07,
Callable 5/1/05 @ 101, MBIA 13 13
Grosse Ile Township
School District, GO,
6.00%, 5/1/22,
Callable 5/1/17 @ 100, FGIC 250 276
Leslie Public Schools, GO,
5.55%, 5/1/07,
Callable 5/1/05 @ 101, AMBAC 250 268
Municipal Bond Authority,
6.70%, 11/1/06,
Callable 11/1/04 @ 102 225 256
Municipal Bond Authority,
6.80%, 11/1/07,
Callable 11/1/04 @ 102 275 312
1,382
Minnesota (3.7%):
Southern Minnesota Municipal
Power, Series A,
4.70%, 1/1/02, AMBAC 2,000 2,023
Mississippi (0.4%):
Jackson Municipal Airport
Authority Revenue,
5.13% 12/1/27,
Callable 12/1/07 @ 100, AMBAC 250 238
Missouri (2.0%):
Excelsior Springs School
District Building Corp.,
6.50%, 3/1/09,
Callable 3/1/04 @ 100, FSA 500 549
West Plains Improvement Authority,
Leasehold Revenue,
5.00%, 5/1/06, MBIA 550 559
1,108
New Mexico (3.2%):
Highlands University
Revenue Bond,
4.50%, 6/15/07, AMBAC 755 744
State Mortgage Finance
Authority, Single Family
Mortgage Program,
Series C-3,
5.95%, 7/1/28,
Callable 1/1/07 @ 102 1,000 1,040
1,784
New York (3.6%):
New York City,
4.25%<F2>, 8/15/21
LOC Morgan Guaranty Trust 2,000 2,000
Ohio (10.2%):
Akron Economic Development,
4.70%, 12/1/07, MBIA 415 416
Akron Economic Development,
4.80%, 12/1/08,
Callable 12/1/07 @ 102, MBIA 925 929
Butler County Transportation
Improvement District, Series A,
5.00%, 4/1/07, FSA 1,000 1,017
Canton Utility System
Improvement, GO,
4.45%, 12/1/03, AMBAC 200 200
Kent City School District, GO,
5.15%, 12/1/05, FGIC 250 260
Kent State University,
5.00%, 5/1/05, MBIA 230 236
Mahoning County Hospital,
Series A,
4.60%, 11/15/07, MBIA 750 740
Orrville, Electric System Revenue,
4.60%, 12/1/04, AMBAC 130 131
State Higher Educational Facilities,
John Carroll University Project,
5.25%, 4/1/07 315 325
State, Special Obligation,
Elementary and Secondary Facilities,
5.80%, 6/1/03, AMBAC 500 532
Toledo, Series A, GO,
4.55%, 12/1/05, FGIC 260 259
Warren, GO, 4.70%,
11/1/06, AMBAC 335 337
Warren, GO, 4.75%,
11/1/07, AMBAC 275 276
5,658
Oregon (1.8%):
Dechutes County School District, GO,
4.50% 12/1/08, FGIC 1,000 983
Tennessee (2.0%):
Dickson, Electric and
Revenue Utility,
5.00%, 9/1/03, MBIA 500 514
Metropolitan Nashville Airport,
4.45%, 7/1/06, FGIC 615 607
1,121
Texas (1.4%):
Conroe Independent School
District, GO,
6.50%, 2/1/04 200 220
Keller Independent School
District, GO,
6.20%, 8/15/04 200 219
State, Series A, GO,
6.00%, 10/1/08 100 111
Ysleta Independent School
District, GO,
5.60%, 8/15/02 200 209
759
Utah (0.9%):
State Water Finance
Agency, Series A,
4.05%, 10/1/98, MBIA 500 501
Washington (4.7%):
Pierce County School District,
No. 003, Puyallup, GO,
5.50%, 12/1/01, FGIC 605 629
Pierce County School District,
No.320, Sumner, GO,
5.50%, 12/1/02, MBIA 1,000 1,045
Seattle Municipal Light & Power,
6.00%, 7/1/03 200 215
Skagit County School District,
No. 103, Anacortes, GO,
4.75%, 12/1/01, FGIC 200 203
Spokane County School
District, GO,
5.40%, 12/1/07, FGIC 500 528
2,620
West Virginia (0.9%):
West Virginia University,
5.13%, 4/1/27,
Callable 4/1/08 @ 102, AMBAC 500 484
Wisconsin (3.5%):
Milwaukee Sewer District,
Series A, GO,
6.70%, 10/1/02 200 218
State, Health & Educational
Facilities Authority,
5.20%, 12/15/07, MBIA 1,675 1,725
1,943
Wyoming (0.4%):
Sweetwater County School
District, GO,
6.00%, 6/1/98 225 225
Total Municipal Bonds (Cost $48,213) 49,412
Warrants (5.4%)
Alabama (5.4%):
Phoenix City
Water & Sewer Revenue,
4.40% 8/15/05, MBIA 1,000 987
Phoenix City
Water & Sewer Revenue,
4.45% 8/15/06, MBIA 1,000 986
Phoenix City
Water & Sewer Revenue,
4.50% 8/15/07, MBIA 500 492
Scottsboro, Series B,
5.30%, 7/1/06, FSA 100 105
Scottsboro, Series B,
5.38%, 7/1/07,
Callable 7/1/06 @ 102, FSA 400 421
2,991
Total Warrants (Cost $2,994) 2,991
Investment Companies (2.8%)
Federated Tax-Free
Money Market Fund 419,209 419
Nuveen Tax-Exempt
Money Market 1,147,647 1,148
Total Investment Companies (Cost $1,567) 1,567
Total Investments (Cost $52,774) <F1>--97.4% 53,970
Other assets in excess of liabilities 2.6% 1,421
TOTAL NET ASSETS--100.0% $55,391
<FN>
<F1> Cost for federal income tax purposes differs from value by net unrealized appreciation of securities
as follows (amounts in thousands):
Unrealized appreciation $1,309
Unrealized depreciation (113)
Net unrealized appreciation $1,196
AMBAC--AMBAC Indemnity Corp.
FGIC--Financial Guaranty Insurance Co.
FHLMC--Federal Home Loan Mortgage Corp.
FSA--Insured by Financial Security Assurance
GO--General Obligation
LOC--Letter of Credit
MBIA--Municipal Bond Insurance Assoc.
<F2> 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 April 30, 1998.
</FN>
See notes to financial statements.
</TABLE>
<TABLE>
THE VICTORY PORTFOLIOS Schedule of Investments
New York Tax-Free Fund April 30, 1998
(Amounts in Thousands, Except Shares) (Unaudited)
<CAPTION>
Shares or
Principal Market
Security Description Amount Value
<S> <C> <C>
New York Municipal Bonds (96.2%)
Metropolitan Transportation
Authority,
4.75%, 4/1/28,
Callable 4/1/08 @ 100, FGIC 250 $ 227
Metropolitan Transportation
Authority, Series A,
5.25%, 4/1/26,
Callable 4/1/07 @ 101, MBIA 750 739
Metropolitan Transportation
Authority, Transportation
Facilities, Series I,
7.00%, 7/1/09, AMBAC 250 295
Metropolitan Transportation
Authority, Transportation
Facilities, Series K,
7.50%, 7/1/17,
Prerefunded 7/1/98 @ 102,
AMBAC 1,200 1,230
Monroe-Woodbury Central
School District, GO,
5.70%, 5/15/27,
Callable 5/15/06 @ 102, MBIA 300 311
Monroe-Woodbury Central
School District, GO,
5.70%, 5/15/26,
Callable 5/15/06 @ 102, MBIA 500 518
Nassau County Industrial
Development Agency,
Civic Facilities,
Hofstra University Project,
6.75%, 8/1/11,
Callable 8/1/01 @ 102, AMBAC 250 271
New York City Housing
Development Corp.,
Multi-Unit Mortgage, Series A,
7.30%, 6/1/10,
Callable 6/1/01 @ 102, FHA 700 747
New York City Housing
Development Corp.,
Multi-Unit Mortgage, Series A,
7.35%, 6/1/19,
Callable 6/1/01 @ 102, FHA 675 720
New York City Housing
Development Corp., Series 1,
7.38%, 4/1/17,
Callable 5/4/98 @ 101.5, MBIA 335 341
New York City Industrial
Development Agency,
Civic Facilities, USTA
National Tennis Center Project,
6.38%, 11/15/14,
Callable 11/15/04 @ 102, FSA 200 220
New York City Municipal Water
Finance Authority, Water &
Sewer System Revenue,
6.75%, 6/15/16,
Prerefunded 6/15/01
@ 101, FGIC 325 352
New York City Munipical Water
Finance Authority,
6.75%, 6/15/16,
Callable 6/15/01 @ 101, FGIC 325 348
New York City Transit Authority,
Transit Facilities,
Livingston Plaza Project,
7.50%, 1/1/20,
Prerefunded 1/1/00 @ 102, FSA 220 236
New York City, Cultural Resources,
Museum of Modern Art,
6.63%, 1/1/11,
Prerefunded 1/1/02
@ 102, AMBAC 680 746
New York City, Series B, GO,
7.00%, 10/1/18,
Callable 10/1/99
@ 100, FSA, ETM 300 312
New York City, Series C, GO,
7.00%, 2/1/12,
Callable 2/1/98
@ 101, FGIC 60 61
North Hempstead,
4.75%, 1/15/23,
Callable 1/15/08 @ 101, FGIC 750 688
Port Authority of
New York & New Jersey,
109th Series,
5.38%, 7/15/27,
Callable 1/15/07 @ 101, FSA 500 501
State Dormitory Authority,
5.25%, 7/1/22,
Callable 7/1/07 @ 101, MBIA 500 493
State Dormitory Authority,
5.75%, 7/1/26,
Callable 7/1/07 @ 102, MBIA 500 520
State Dormitory Authority,
City University, Series 2,
6.75%, 7/1/24,
Pre-refunded 7/1/04 @ 102,
MBIA 700 798
State Dormitory Authority,
Ithaca College,
6.50%, 7/1/10,
Callable 7/1/01 @ 102, MBIA 750 807
State Dormitory Authority, Judicial
Facilities Leases, Series B,
7.00%, 4/15/16,
Callable 4/15/01 @ 102, MBIA 225 244
State Dormitory Authority,
Siena College,
5.75%, 7/1/26,
Callable 7/1/07 @ 102, MBIA 250 260
State Dormitory Authority,
St. John's University,
5.70%, 7/1/26,
Callable 7/1/06 @ 102, MBIA 700 723
State Dormitory Authority,
University of Rochester,
Series A,
5.00%, 7/1/27,
Callable 7/1/08 @ 101, MBIA 250 237
State Local Governmentt
Assistance, Series B,
4.88%, 4/1/20,
Callable 4/1/08 @ 101, MBIA 1,000 939
State Medical Care Facilities
Finance Agency,
7.38%, 8/15/19,
Prerefunded 8/15/99
@ 102, MBIA 330 351
State Medical Care Facilities
Finance Agency,
7.38%, 8/15/19,
Callable 8/15/99 @ 102, MBIA 170 180
State Medical Care Facilities
Finance Agency, North
Shore University Hospital,
7.20%, 11/1/20,
Callable 11/1/00 @ 102, MBIA 565 611
State Medical Care Facilities
Finance Agency,
St. Luke's, Series B,
7.45%, 2/15/29,
Prerefunded 2/15/00
@ 102, MBIA 340 366
State Tollway Authority,
Series A,
5.00%, 4/1/18,
Callable 4/1/08 @ 101 1,000 965
State Tollway Authority,
Series C,
6.00%, 1/1/25,
Callable 1/1/05 @ 102, FGIC 550 583
State Urban Development Corp.,
Correctional Facilities,
Series 1,
7.50%, 1/1/20,
Prerefunded 1/1/00
@ 102, FSA 400 430
State, GO,
6.75%, 8/1/19,
Callable 8/1/01 @ 102, AMBAC 325 352
State, GO,
6.75%, 8/1/18,
Callable 8/1/01 @ 102, AMBAC 370 401
Triborough Bridge & Tunnel
Authority, Series T,
7.00%, 1/1/20,
Prerefunded 1/1/01
@ 102, MBIA 900 980
Triborough Bridge & Tunnel
Authority, Special Obligation,
Series B,
6.88%, 1/1/15,
Callable 1/1/02 @ 102, AMBAC 1,000 1,075
Total New York Municipal Bonds
(Cost $19,258) 20,178
Investment Companies (1.9%)
Providence of New York Fund 397,127 397
Total Investment Companies (Cost $397) 397
Total Investments (Cost $19,655) <F1>--98.1% 20,575
Other assets in excess of liabilities 1.9% 404
TOTAL NET ASSETS--100.0% $20,979
<FN>
<F1> Cost for federal income tax purposes differs from value by net unrealized appreciation of securities
as follows (amounts in thousands):
Unrealized appreciation $1,006
Unrealized depreciation (86)
Net unrealized appreciation $ 920
AMBAC--AMBAC Indemnity Corp.
FGIC--Financial Guaranty Insurance Co.
FHA--Federal housing Administration
GO--General Obligation
MBIA--Municipal Bond Insurance Assoc.
</FN>
See notes to financial statements.
</TABLE>
<TABLE>
THE VICTORY PORTFOLIOS Schedule of Investments
Ohio Municipal Bond Fund April 30, 1998
(Amounts in Thousands, Except Shares) (Unaudited)
<CAPTION>
Shares or
Principal Market
Security Description Amount Value
<S> <C> <C>
Municipal Bonds (93.5%)
Alternative Minimum Tax Paper (15.7%):
Cuyahoga County
Multifamily Revenue,
6.60%, 10/20/30,
Callable 10/20/05 @ 102, GNMA 2,000 $ 2,138
State Education Loan, Series A-1,
5.85%, 12/1/19,
Callable 6/1/07 @ 102, AMBAC 2,000 2,056
State Housing Finance Agency,
6.15%, 3/1/29,
Callable 9/1/07 @ 102, GNMA 1,500 1,576
Student Loan Funding Corp.,
Series A,
5.50%, 12/1/01 3,300 3,383
Student Loan Funding Corp.,
Series A,
5.85%, 8/1/04 3,000 3,110
12,263
General Obligations (44.0%):
County, City & Special District (10.3%):
Bath Township,
0.00%, 12/1/07, AMBAC 205 130
Bath Township,
0.00%, 12/1/08, AMBAC 205 123
Butler County,
5.60%, 12/1/09,
Callable 12/1/06 @ 101, AMBAC 355 379
Butler County,
5.65%, 12/1/10,
Callable 12/1/06 @ 101, AMBAC 155 165
Cleveland,
5.00%, 8/1/18,
Callable 8/1/07 @ 102, MBIA 1,000 969
Columbiana County,
5.20%, 12/1/17,
Callable 12/1/07 @ 101, FSA 1,000 992
Cuyahoga Falls,
5.25%, 12/1/17,
Callable 12/1/07 @ 102, FGIC 500 501
Madison County,
7.00%, 12/1/19,
Callable 12/1/04 @ 102, AMBAC 600 684
Monroe Falls, Series A,
6.95%, 12/1/14,
Callable 12/1/04 @ 101, AMBAC 1,000 1,130
Toledo,
5.50%, 12/1/12,
Callable 12/1/07 @ 102, FGIC 1,085 1,131
Toledo,
5.63%, 12/1/11,
Callable 12/1/06 @ 102, AMBAC 1,000 1,064
Toledo, Series B,
4.35%, 12/1/02, FGIC 195 195
Toledo, Series B,
4.45%, 12/1/03, FGIC 115 115
Toledo, Series B,
4.55%, 12/1/04, FGIC 130 131
Toledo, Series B,
4.60%, 12/1/06, FGIC 170 170
Toledo, Series B,
4.65%, 12/1/07, FGIC 145 145
8,024
Education (27.7%):
Anthony Wayne Local
School District,
5.75%, 12/1/18,
Callable 12/1/05 @ 101, FGIC 1,000 1,038
Avon Local School District,
5.50%, 12/1/04, AMBAC 665 705
Avon Local School District,
5.55%, 12/1/05, AMBAC 250 266
Batavia Local School District,
7.00%, 12/1/14, MBIA 1,500 1,763
Big Walnut Local
School District,
0.00%, 12/1/08, AMBAC 585 352
Big Walnut Local
School District,
0.00%, 12/1/09, AMBAC 250 142
Brecksville-Broadview Heights,
City School District,
6.50%, 12/1/16,
Callable 12/1/06 @ 102, FGIC 1,000 1,126
Canal Winchester Local
School District,
4.60%, 12/1/08 FGIC 150 148
Delaware City School District,
5.75%, 12/1/20,
Callable 12/1/05 @ 101, FGIC 1,000 1,036
Forest Hills Local School District,
4.00%, 12/1/98, MBIA 165 165
Franklin City School District,
0.00%, 12/1/12, AMBAC 280 132
Franklin City School District,
0.00%, 12/1/13, AMBAC 280 124
Franklin City School District,
0.00%, 12/1/14, AMBAC 280 117
Indian Lake Local School District,
5.38% 12/1/23,
Callable 12/1/06 @ 101, FGIC 1,050 1,052
Indian Lake Local School District,
0.00%, 12/1/11, AMBAC 250 126
Indian Lake Local School District,
0.00%, 12/1/12, AMBAC 250 117
Indian Lake Local School District,
0.00%, 12/1/13, AMBAC 250 110
Indian Lake Local School District,
0.00%, 12/1/14, AMBAC 250 104
Indian Lake Local School District,
0.00%, 12/1/15, AMBAC 250 97
Indian Lake Local School District,
0.00%, 12/1/16, AMBAC 250 92
Indian Valley Local School District,
7.00%, 12/1/14,
Callable 12/1/05 @ 102, AMBAC 2,500 2,88
Lakeview Local School District,
6.95%, 12/1/19,
Callable 12/1/04 @ 102, AMBAC 1,250 1,422
Liberty Benton Local School District,
0.00%, 12/1/15, AMBAC 570 224
Liberty Benton Local School District,
0.00%, 12/1/16, AMBAC 285 106
McComb Local School District,
4.70%, 12/1/06, MBIA 140 141
Olentangy Local School
District, Series A,
6.25%, 12/1/14,
Callable 12/1/04 @ 102 500 544
Reynoldsburg City School District,
4.75%, 12/1/05, FGIC 10 10
Reynoldsburg City School District,
4.80%, 12/1/06, FGIC 235 238
Ripley-Union-Lewis
Local School District,
0.00%, 12/1/06, FGIC 145 97
Ripley-Union-Lewis
Local School District,
0.00%, 12/1/07, FGIC 245 155
Ripley-Union-Lewis
Local School District,
0.00%, 12/1/08, FGIC 245 147
Ripley-Union-Lewis
Local School District,
0.00%, 12/1/09, FGIC 240 137
Ripley-Union-Lewis
Local School District,
0.00%, 12/1/10, FGIC 245 131
Ripley-Union-Lewis
Local School District,
0.00%, 12/1/11, FGIC 245 124
Ripley-Union-Lewis
Local School District,
0.00%, 12/1/12, FGIC 240 113
Ripley-Union-Lewis
Local School District,
0.00%, 12/1/13, FGIC 240 107
Ripley-Union-Lewis
Local School District,
0.00%, 12/1/14, FGIC 235 98
Southern Local School District,
0.00%, 12/1/07, FGIC 140 89
Southern Local School District,
0.00%, 12/1/08, FGIC 140 84
Southern Local School District,
0.00%, 12/1/09, FGIC 145 82
Southern Local School District,
0.00%, 12/1/10, FGIC 145 77
Southern Local School District,
0.00%, 12/1/11, FGIC 140 71
Southern Local School District,
0.00%, 12/1/12, FGIC 140 66
Southern Local School District,
0.00%, 12/1/13, FGIC 140 62
Southern Local School District,
0.00%, 12/1/14, FGIC 140 59
Sycamore Community
School District,
0.00%, 12/1/07, OID 360 226
Twinsburg Local School District,
5.90%, 12/1/21,
Callable 12/1/06 @ 102, FGIC 2,000 2,109
University Of Cincinnati,
Edwards Center Project,
4.50%, 12/1/06, OLD 600 591
Upper Arlington
City School District,
5.13%, 12/1/19,
Callable 12/1/06 @ 101, MBIA 1,250 1,217
Wadsworth City School District,
0.00%, 12/1/07, FGIC 555 352
Wadsworth City School District,
0.00%, 12/1/08, FGIC 555 333
Wadsworth City School District,
5.00 %, 12/1/22,
Callable 12/1/08 @ 101, FGIC 500 478
Wadsworth City School District,
5.13%, 12/1/15,
Callable 12/1/08 @ 101, FGIC 200 199
21,582
Public Facilities (Convention, Sport,
Public Buildings) (2.4%):
Centerville, Capital Facilities,
5.63%, 12/1/26,
Callable 12/1/05 @ 101, MBIA 285 292
Crawford County,
Correctional Facilities,
6.75%, 12/1/19,
Callable 12/1/05 @ 101,
AMBAC 1,385 1,560
1,852
Utility (Sewers, Telephone, Electric)
(3.6%):
Canton, Waterworks System,
5.75%, 12/1/10,
Callable 12/1/05 @ 102, AMBAC 500 537
Huron County, Landfill Issue II,
5.60%, 12/1/09,
Callable 12/1/07 @ 102, MBIA 320 345
Huron, County Landfill Issue II,
5.40%, 12/1/07, MBIA 285 302
Lucas, County Metropolitan
Sewer & Water District,
5.45%, 12/1/17,
Callable 12/1/07 @ 102 505 509
Toledo, Sewer Improvements,
6.10%, 12/1/14,
Callable 12/1/04 @ 102, AMBAC 1,000 1,086
2,779
Total General Obligations 34,237
Revenue Bonds (33.8%):
County, City & Special District (1.2%):
Akron, Economic Development,
5.00%, 12/1/18,
Callable 12/1/07 @ 102, MBIA 1,000 969
Education (5.4%):
State, Higher Education Facility
Revenue, Series II B,
5.88%, 12/1/04,
Callable 12/1/01 @ 102 1,000 1,062
State, Higher Educational Facility
Revenue, John Carroll
University Project,
5.05%, 4/1/04 150 154
State, Higher Educational Facility
Revenue, Xavier University,
6.00%, 5/15/08,
Callable 5/15/07 @ 102, MBIA 500 550
State, Higher Educational Facilty
Revenue, University of Dayton,
5.40%, 12/1/22,
Callable 12/1/07 @ 101, AMBAC 1,000 1,002
University of Akron, General Receipts,
5.00%, 1/1/02, AMBAC 440 449
University of Cincinnati, General
Receipts, Series AD,
5.10%, 6/1/11,
Callable 6/1/07 @ 101 350 350
Youngstown State University,
4.25%, 12/15/06 AMBAC 100 97
Youngstown State University,
4.25%, 12/15/07 AMBAC 300 289
Youngstown State University,
4.30%, 12/15/08,
Callable 12/15/07 @ 101, AMBAC 250 240
4,193
Hospitals, Nursing Homes
& Health Care (11.9%):
Cuyahoga County Hospital,
University Hospital Health,
Series A,
5.63%, 1/15/21,
Callable 1/15/06 @ 102, MBIA 1,300 1,326
Garfield Heights,
Marymont Hospital,
6.70%, 11/15/15,
Callable 11/15/02 @ 102 1,000 1,084
Lake County Hospital,
Improvement Facilities,
6.38%, 8/15/03, AMBAC 1,800 1,963
Lorain County Hospital,
Catholic Healthcare Partners,
5.50%, 9/1/27,
Callable 9/1/07 @ 102, MBIA 530 536
Lucas County Hospital,
Promedica Healthcare,
5.75%, 11/15/14,
Callable 11/15/06 @ 102, MBIA 2,000 2,106
Portage County Hospital,
Robinson Memorial,
6.50%, 11/15/03, MBIA 635 699
Portage County Hospital,
Robinson Memorial,
6.50%, 11/15/04, MBIA 675 751
Portage County Hospital,
Robinson Memorial,
6.50%, 11/15/05, MBIA 715 801
9,266
Housing (3.5%):
Cap Corp., Housing Mangement
Revenue, Bucyrus Estate,
5.75%, 7/1/06,
Callable 7/1/05 @ 102, MBIA 235 247
Cuyahoga County Multifamily
Revenue, Water Street Assoc.,
6.15%, 12/20/26,
Callable 6/20/08 @ 105, GNMA 850 892
Cuyahoga County Multifamily
Revenue, Water Street Assoc.,
5.60%, 6/20/08, GNMA 370 386
Ohio Capital Corporation,
Mutifamily Housing Revenue,
5.50%, 1/1/24,
Callable 1/1/03 @ 1100, FHA 1,235 1,227
2,752
Public Facilities (Convention, Sport,
Public Buildings) (4.1%):
State Building Authority,
Adult Correctional Facilities,
6.00%, 10/1/07,
Callable 10/1/03 @ 102 2,000 2,168
State Building Authority,
Sports Facilities Building,
5.00%, 10/1/07, FSA 450 462
Toledo, Lucas County,
Convention Center Project,
5.50%, 10/1/10,
Callable 10/1/06 @ 102, MBIA 500 528
3,158
Utility (Sewers, Telephone, Electric)
(7.7%):
Barberton Sewer System Revenue,
4.50%, 12/1/06 FGIC 250 248
Cleveland Public Power
Systems, Series A,
7.00%, 11/15/24,
Prerefunded 11/15/04
@ 102, MBIA 1,985 2,299
Cleveland Waterworks, Series H,
5.75%, 1/1/21,
Callable 1/1/06 @ 102, MBIA 950 986
Huber Heights Water Systems,
5.55%, 12/1/10,
Callable 12/1/05 @ 102, MBIA 815 862
Huber Heights Water Systems,
0.00%, 12/1/22, MBIA 475 126
Huber Heights Water Systems,
0.00%, 12/1/24, MBIA 1,095 261
Huber Heights Water Systems,
0.00%, 12/1/25, MBIA 1,070 241
Southwest Regional Water,
6.00%, 12/1/20,
Callable 12/1/05 @ 101, MBIA 500 531
Springboro Sewer Systems,
4.00%, 6/1/98, MBIA 135 135
Toledo Waterworks,
5.00%, 11/15/02, FGIC 300 308
5,997
Total Revenue Bonds 26,335
Total Municipal Bonds (Cost $69,582) 72,835
Investment Companies (8.4%)
Federated Ohio Municipal
Cash Trust Fund 3,090,617 3,091
Fidelity Ohio Tax Free
Money Market 3,464,357 3,464
Total Investment Companies (Cost $6,555) 6,555
Total Investments (Cost $76,137) <F1>--101.9% 79,390
Liabilities in excess of other assets (1.9)% (1,504)
TOTAL NET ASSETS--100.0% $77,886
<FN>
<F1> Cost for federal income tax purposes differs from value by net unrealized appreciation of securities
as follows (amounts in thousands):
Unrealized appreciation $3,430
Unrealized depreciation (177)
Net unrealized appreciation $3,253
AMBAC--AMBAC Indemnity Corp.
FGIC--Insured by Financial Guaranty Insurance Corp.
FNMA--Federal National Mortgage Assoc.
FSA--Insured by Financial Security Assurance
GNMA--Insured by Government National Mortgage Assoc.
EDR--Economic Development Revenue
IDR--Industrial Development Revenue
LOC--Letter of Credit
MBIA--Insured by Municipal Bond Insurance Assoc.
GO--General Obligation
</FN>
See notes to financial statements.
</TABLE>
<TABLE>
THE VICTORY PORTFOLIOS Schedule of Investments
Balanced Fund April 30, 1998
(Amounts in Thousands, Except Shares) (Unaudited)
<CAPTION>
Shares or
Principal Market
Security Description Amount Value
<S> <C> <C>
Commercial Paper (5.1%)
Financial Services (5.1%):
Associates Corp., N.A.,
5.56%, 5/1/98 21,433 $ 21,433
Total Commercial Paper (Cost $21,433) 21,433
Common Stocks (53.1%)
Aerospace/Defense (0.6%):
AlliedSignal, Inc. 57,400 2,515
Aluminum (0.4%):
Aluminum Co. of America 21,700 1,682
Automobiles (1.0%):
Chrysler Corp. 31,000 1,246
Ford Motor Co. 14,041 643
General Motors Corp. 35,000 2,358
4,247
Banks (5.0%):
BankAmerica Corp. 47,800 4,063
Chase Manhattan Corp. 14,400 1,995
First Union Corp. 70,200 4,239
Mellon Bank Corp. 18,000 1,296
Norwest Corp. 90,000 3,572
U.S. Bancorp 15,000 1,905
Wells Fargo & Co. 10,500 3,869
20,939
Beverages (1.7%):
Anheuser-Busch Cos., Inc. 84,000 3,848
PepsiCo, Inc. 80,000 3,175
7,023
Chemicals--General (0.5%):
Air Products & Chemicals, Inc. 25,500 2,217
Computers & Peripherals (2.9%):
Cisco Systems, Inc. <F2> 39,000 2,857
Hewlett-Packard Co. 33,800 2,546
International Business Machines Corp. 60,000 6,952
12,355
Conglomerates (1.4%):
General Electric Co. 40,300 3,431
Textron, Inc. 30,800 2,410
5,841
Consumer Products (0.6%):
Colgate-Palmolive Co. 15,500 1,390
Newell Co. 22,600 1,092
2,482
Containers (0.3%):
Sonoco Products Co. 30,000 1,206
Cosmetics & Related (0.5%):
Avon Products, Inc. 27,100 2,227
Electrical Equipment (0.6%):
Emerson Electric Co. 42,200 2,685
Electronic & Electrical--
General (0.7%):
Lucent Technologies, Inc. 28,352 2,158
Motorola, Inc. 12,000 668
2,826
Entertainment (1.0%):
The Walt Disney Co. 8,000 995
Viacom, Inc., Class B <F2> 53,700 3,114
4,109
Financial Services (1.5%):
American Express Co. 14,300 1,459
Associates First Capital Corp. 3,679 275
Fannie Mae 61,200 3,664
Franklin Resources, Inc. 20,000 1,070
6,468
Food Processing & Packaging (1.6%):
ConAgra, Inc. 98,000 2,860
Sara Lee Corp. 64,000 3,812
6,672
Forest Products--
Lumber & Paper (0.3%):
Bowater, Inc. 9,000 503
Mead Corp. 28,000 970
1,473
Health Care (0.5%):
Columbia/HCA Healthcare Corp. 67,500 2,223
Insurance (0.6%):
Everest Reinsurance Holdings, Inc. 60,500 2,496
Insurance--Multi-Line (2.4%):
Allstate Corp. 73,942 7,116
General Re Corp. 13,900 3,108
10,224
Medical Supplies (0.8%):
Biomet, Inc. 58,000 1,740
Medtronic, Inc. 28,000 1,474
3,214
Newspapers (0.5%):
Dow Jones & Co., Inc. 43,500 2,118
Oil & Gas Exploration,
Production & Services (1.1%):
Anadarko Petroleum Corp. 15,000 1,099
Enron Corp. 72,600 3,571
4,670
Oil-Integrated Companies (5.9%):
Atlantic Richfield Co. 24,000 1,872
Chevron Corp. 66,001 5,457
Mobil Corp. 84,400 6,666
Phillips Petroleum Co. 79,600 3,945
Netherlands Oil 1,600 91
Texaco, Inc. 104,000 6,396
24,427
Oilfield Services & Equipment (1.3%):
Baker Hughes, Inc. 74,600 3,021
Schlumberger, Ltd. 32,000 2,652
5,673
Paint, Varnishes, Enamels (0.2%):
Sherwin-Williams Co. 21,400 762
Pharmaceuticals (4.8%):
Abbott Laboratories 50,000 3,656
American Home Products Corp. 40,400 3,762
Bristol-Myers Squibb Co. 15,000 1,588
Merck & Co., Inc. 25,000 3,013
Pfizer, Inc. 71,200 8,104
20,123
Pollution Control Services
& Equipment (0.5%):
Waste Management, Inc. 59,000 1,977
Publishing (0.8%):
Time Warner, Inc. 45,500 3,572
Railroads (0.3%):
Union Pacific Corp. 24,000 1,314
Retail (1.4%):
Dayton Hudson Corp. 43,400 3,789
Wal-Mart Stores, Inc. 43,800 2,215
6,004
Retail--Department Stores (1.3%):
J. C. Penney Co., Inc. 41,000 2,914
May Department Stores Co. 45,000 2,776
5,690
Retail--Drug Stores (0.6%):
Walgreen Co. 69,600 2,401
Retail--Specialty Stores (0.7%):
AutoZone, Inc. <F2> 30,000 906
Lowe's Cos., Inc. 28,000 1,958
2,864
Semiconductors (0.8%):
Intel Corp. 27,400 2,214
LSI Logic Corp. <F2> 40,000 1,085
3,299
Software & Computer
Services (0.7%):
Microsoft Corp. <F2> 21,000 1,892
Oracle Corp. <F2> 47,750 1,236
3,128
Steel (0.2%):
USX--U.S. Steel Group, Inc. 17,100 669
Telecommunications (0.6%):
Australia Telecom, ADR 1,950 92
WorldCom, Inc. <F2> 55,000 2,353
2,445
Utilities--Electric (2.0%):
Consolidated Edison Co.
of New York, Inc. 32,400 1,466
DQE, Inc. 20,000 688
Duke Energy Corp. 45,000 2,604
FirstEnergy Corp. 15,000 454
Korea Electric Power Corp., ADR 6,900 64
PacifiCorp 40,000 930
Texas Utilities Co. 52,000 2,080
8,286
Utilities--Telecommunications
(4.5%):
Ameritech Corp. 96,000 4,086
AT&T Corp. 35,000 2,102
Bell Atlantic Corp. 28,000 2,620
GTE Corp. 75,500 4,412
Hungary Telecom, ADR <F2> 4,000 118
MCI Telecommunications Corp. 116,000 5,836
19,174
Total Common Stocks (Cost $138,752) 223,720
Foreign Common Stocks (4.2%)
Australia (0.1%):
Banks (0.0%):
National Australia Bank Ltd. 9,000 128
Leisure--Recreation, Gaming
(0.0%):
Aristocrat Leisure Ltd. 35,000 82
Oil & Gas Exploration,
Production & Services (0.0%):
Woodside Petroleum Ltd. 10,638 70
Publishing (0.1%):
Publishing & Broadcasting Ltd. 32,000 152
Retail (0.0%):
Woolworths Ltd. 29,000 100
Total Australia 532
Brazil (0.0%):
Utilities--Telecommunications
(0.0%):
Telecomunicacoes Brasileiras
S/A-Telebras, ADR 1,000 122
Total Brazil 122
Britain (0.8%):
Advertising (0.0%):
WPP Group PLC 15,000 95
Aerospace/Defense (0.0%):
British Aerospace 3,000 101
Banks (0.1%):
HSBC Holdings PLC 5,000 157
Lloyds TSB Group PLC 17,000 254
411
Diversified (0.0%):
BTR PLC 42,102 140
Food & Dairy Products (0.0%):
Associated British Foods PLC 2,600 25
Leisure--Recreation, Gaming
(0.1%):
Ladbroke Group PLC 50,000 276
Manufacturing--Miscellaneous
(0.0%):
Siebe PLC 4,500 102
Oil & Gas Exploration,
Production & Services (0.0%):
British Petroleum Co. PLC 8,200 129
Pharmaceuticals (0.1%):
Glaxo Wellcome PLC 8,500 240
Printing & Publishing (0.0%):
Reed International PLC 12,000 106
Retail--Department Stores (0.0%):
Marks & Spencer PLC 15,000 143
Transportation (0.3%):
National Express Group PLC 26,000 406
Peninsular & Oriental
Steam Navigation Co. 22,000 325
731
Utilities--Telecommunications
(0.1%):
British Telecommunications PLC 23,000 250
Utilities--Water (0.0%):
Severn Trent PLC 4,000 65
Total Britain 2,814
Canada (0.0%):
Forest Products--Lumber & Paper
(0.0%):
Abitibi-Consolidated, Inc. 10,000 150
Total Canada 150
Finland (0.1%):
Banks (0.1%):
Merita Ltd., Class A 55,497 372
Telecommunications (0.0%):
Nakia Oyj, Class A 2,700 181
Total Finland 553
France (0.4%):
Computers & Peripherals (0.0%):
Cap Gemini SA 1,000 130
Cap Gemini SA--New <F2> 88 11
141
Conglomerates (0.0%):
Compagnie Generale d'Industrie
et de Participations 82 41
Diversified (0.2%):
Compagnie de Saint Gobain 2,350 392
Compagnie Generale des Eaux 1,500 279
671
Food Processing & Packaging
(0.1%):
Groupe Danone 900 212
Oil & Gas Exploration,
Production & Services (0.0%):
Elf Aquitaine SA 1,300 170
Oil-Integrated Companies (0.1%):
Total SA, Class B 1,950 232
Pharmaceuticals (0.1%):
Rhone-Poulenc, Class A 5,000 244
Utilities--Telecommunications
(0.0%):
France Telecom SA 1,200 65
Total France 1,776
Germany (0.4%):
Airlines (0.0%):
Deutsche Lufthansa AG, Registered 7,500 175
Automobiles (0.1%):
Daimler-Benz AG 2,360 231
Banks (0.1%):
Commerzbank AG 4,600 179
Deutsche Bank 2,200 171
350
Chemicals--General (0.1%):
BASF AG 6,300 281
Electric--Utility (0.0%):
Veba AG 2,000 132
Insurance (0.0%):
Allianz AG 600 185
Manufacturing--Miscellaneous
(0.1%):
Siemens AG 3,000 176
Software & Computer Services (0.0%):
Systeme, Anwendungen,
Produkte In Der Datenver 200 95
Total Germany 1,625
Greece (0.1%):
Banks (0.1%):
National Bank Of Greece 800 141
Telecommunications (0.0%):
Hellenic Telecommunication
Organization SA 4,000 114
Total Greece 255
Hong Kong (0.1%):
Banks (0.0%):
Hang Seng Bank 3,500 29
Newspapers (0.0%):
South China Morning Post
(Holdings) Ltd. 164,000 98
Real Estate (0.1%):
Hutchison Whampoa Ltd. 19,000 117
New World Development Co. Ltd. 45,000 129
246
Utilities--Electric (0.0%):
Beijing Datang Power
Generation Co. Ltd. <F2> 95,000 39
Total Hong Kong 412
Hungary (0.0%):
Oil-Integrated Companies (0.0%):
MOL Magyar Olaj-es Gazipari Rt. 4,000 122
Transportation Leasing
& Trucking (0.0%):
RABA Rt. 5,000 78
Total Hungary 200
Ireland (0.1%):
Banks (0.1%):
Allied Irish Banks PLC 21,000 290
Building Materials (0.0%):
CRH PLC 12,000 171
Total Ireland 461
Italy (0.3%):
Automobiles (0.1%):
Fiat SpA-RNC 92,000 229
Banks (0.0%):
Istituto Bancario San Paolo
di Torino SpA 9,000 130
Financial Services (0.0%):
Istituto Mobiliare Italiano SpA 9,000 147
Food & Dairy Products (0.0%):
Parmalat Finanziaria SpA 47,000 106
Insurance--Multi-Line (0.0%):
Assicurazioni Generali 5,000 150
Utilities--Telecommunications
(0.2%):
Telecom Italia Mobile SpA 45,000 257
Telecom Italia SpA 34,883 184
441
Total Italy 1,203
Japan (0.5%):
Automobiles (0.2%):
Honda Motor Co. Ltd. 13,000 472
Banks (0.0%):
Bank of Tokyo--Mitsubishi Ltd. 15,000 186
Building Materials (0.0%):
Rinnai Corp. 3,000 48
Construction (0.0%):
Obayashi Corp. 17,000 76
Cosmetics & Related (0.1%):
Kao Corp. 12,000 177
Shiseido Co. Ltd. 11,000 145
322
Electronic & Electrical--
General (0.0%):
Matsushita Electric Industrial Co. Ltd. 8,000 129
Sony Corp. 100 8
137
Entertainment (0.0%):
Nintendo Co. Ltd. 1,000 92
Financial Services (0.1%):
Takefuji Corp. 5,000 263
Food Manufacturing (0.0%):
Q.P. Corp. 10,000 72
Health Care (0.0%):
Hoya Corp. 4,000 133
Insurance (0.0%):
Tokio Marine & Fire Insurance Co. 15,000 163
Manufacturing--Miscellaneous
(0.0%):
Mitsubishi Heavy Industries 30,000 111
Paint, Varnishes, Enamels (0.0%):
Kansai Paint 15,000 38
Retail--Department Stores
(0.0%):
Isetan Co. Ltd. 12,000 100
Tools (0.0%):
Makita Corp. 6,000 65
Total Japan 2,278
Malaysia (0.0%):
Automobiles (0.0%):
Oriental Holdings Berhad 42,000 88
Total Malaysia 88
Mexico (0.0%):
Diversified (0.0%):
Desc, SA, ADR 2,800 81
Total Mexico 81
Netherlands (0.3%):
Banks (0.2%):
ABN Amro Holding N.V. 4,400 107
ING Groep Financial Services N.V. 4,497 292
399
Containers (0.0%):
Koninklijke Emballage
Indusrie Van Leer N.V. 7,400 189
Electronic & Electrical--
General (0.1%):
Philips Electronics N.V. 3,300 291
Food Distributors, Supermarkets
& Wholesalers (0.0%):
Koninklijke Ahold N.V. 3,000 94
Insurance (0.0%):
Aegon N.V. 1,000 130
Oil-Integrated Companies (0.0%):
Royal Dutch Petroleum Co. 2,000 110
Total Netherlands 1,213
New Zealand (0.0%):
Fisheries (0.0%):
Sanford Ltd. 12,000 17
Household Goods--Appliances,
Furnishings & Electronics (0.0%):
Fisher & Paykel Industries Ltd. 15,100 45
Total New Zealand 62
Norway (0.1%):
Banks (0.1%):
Den Norske Bank ASA 50,000 264
Construction (0.0%):
Kvaerner ASA 1,000 44
Transportation (0.0%):
Bergesen D Y ASA, Class A 4,000 86
Total Norway 394
Portugal (0.2%):
Banks (0.1%):
Banco Commercial Portugues, SA 11,000 386
Building Materials (0.1%):
Cimpor-Cimentos de Portugal,
SGPS, SA 10,000 370
Utilities--Telecommunications
(0.0%):
Portugal Telecom, SA 2,800 150
Total Portugal 906
Spain (0.3%):
Banks (0.1%):
Banco Santander, SA, 5,000 263
Corporacion Bancaria de Espana, SA 2,000 167
430
Construction (0.1%):
Dragados & Construcciones, SA 10,000 324
Utilities--Electric (0.0%):
Endesa, SA 7,000 170
Utilities--Telecommunications
(0.1%):
Telefonica de Espana 5,500 230
Total Spain 1,154
Sweden (0.1%):
Household Goods--Appliances,
Furnishings & Electronics (0.1%):
Electrolux AB, Class B 1,500 140
Pharmaceuticals (0.0%):
Astra AB, Class A 6,000 123
Telecommunications (0.0%);
Telefonaktiebolaget LM Ericsson,
Class B 2,500 132
Total Sweden 395
Switzerland (0.3%):
Banks (0.1%):
Credit Suisse Group, Registered 1,297 285
Union Bank of Switzerland 113 182
467
Food Products (0.0%):
Nestle SA, Registered 40 78
Insurance (0.0%):
Baloise Holding Ltd.,
Registered <F2> 90 208
Pharmaceuticals (0.2%):
Novartis AG, Registered 131 217
Roche Holding AG 25 253
470
Total Switzerland 1,223
Total Foreign Common Stocks
(Cost $14,065) 17,897
Preferred Stocks (0.0%)
Germany (0.0%):
Automobiles (0.0%):
Volkswagen AG 200 118
Consumer Products (0.0%):
Gardena Holding AG <F2> 3,888 87
Total Germany 205
Total Preferred Stocks (Cost $146) 205
Convertible Bonds (0.0%)
Banks (0.0%):
Mitsubishi Bank International
Finance Bermuda,
3.00%, 11/30/02 94 98
Total Convertible Bonds (Cost $100) 98
Asset Backed Securities (2.0%)
California Infrastructure PG&E,
Series 1997-1, Class A8,
6.48%, 12/26/09 1,200 1,210
EQCC Home Equity Loan Trust,
Series 1997-3, Class A7,
6.93%, 2/15/29,
Callable 7/15/04 @ 100 800 801
EQCC Home Equity Loan Trust,
Series 1997-3, Class A8,
6.41%, 12/15/04 830 831
Equicredit Home Equity Loan
Trust 1998-1, Class A6F,
6.25%, 12/15/07 955 949
Lehman Large Loan,
Series 1997-LLI, Class A,
6.79%, 6/12/04, CMO 1,721 1,762
Morgan Stanley Capital,
Series 1998-HF1, Class A2,
6.52%, 1/15/08, CMO 1,300 1,300
The Money Store Home Equity Trust,
Series 1997-B, Class A8,
6.90%, 7/15/38,
Callable 11/15/05 @ 100 1,350 1,373
Total Asset Backed Securities (Cost $8,199) 8,226
Corporate Bonds (12.1%)
Agriculture & Livestock (0.2%):
Cargill, Inc.,
5.95%, 5/15/37,
Putable 5/15/99 @ 100 <F3> 1,000 1,005
Automobiles (0.7%):
Chrysler Financial Corp.,
6.09%, 4/6/01 1,950 1,950
Daimler-Benz North America,
7.38%, 9/15/06 815 870
Ford Motor Co.,
9.00%, 9/15/01 100 109
2,929
Banks (1.0%):
BankAmerica Corp.,
8.38%, 3/15/02 1,000 1,070
Bankers Trust New York
Corp., Series A,
6.70%, 10/1/07 400 404
First Union Corp.,
9.45%, 8/15/01 1,200 1,317
Nationsbank,
6.60%, 5/15/10, 750 753
Wells Fargo & Co.,
6.25%, 4/15/08 600 592
4,136
Brokerage Services (0.4%):
Lehman Brothers Holdings,
7.38%, 5/15/04 1,000 1,040
Morgan Stanley Group, Inc.,
5.63%, 3/1/99 800 797
1,837
Chemicals--General (0.2%):
E.I. Dupont Nemour,
6.50%, 1/15/28 900 878
Conglomerates (0.2%):
Corporacion Andina de Fomento,
6.75%, 3/15/05 940 933
Electronic & Electrical--
General (0.4%):
Sony Corp.,
6.13%, 3/4/03 1,500 1,498
Entertainment (0.2%):
Loews Corp.,
6.75%, 12/15/06 875 884
Financial Services (1.9%):
Associates Corp., N.A.,
6.00%, 4/15/03 695 690
Conseco, Inc.,
6.40%, 2/10/03 750 740
First Union,
8.04%, 12/1/26,
Callable 12/1/06 @ 104.02 950 1,015
NBG Finance PLC,
6.29%<F4>, 6/24/07,
Callable 6/24/02 @ 100 985 975
Republic New York-Stop,
7.53%, 12/4/26,
Callable 12/4/06 @ 103.77 1,500 1,543
Tokai Preferred Capital Co., LLC,
9.98%, 12/29/49,
Callable 6/30/08 @ 100 <F3> 1,300 1,285
Transamerica Capital III,
7.63%, 11/15/37 <F3> 1,800 1,861
8,109
Food Processing & Packaging
(0.2%):
Nabisco, Inc.,
6.00%, 2/15/01 925 917
Industrial Goods & Services (2.2%):
Dana Corp.,
7.00%, 3/15/28 550 551
EOP Operating LP,
6.75%, 2/15/08 <F3> 2,460 2,451
Georgia-Pacific Corp.,
9.95%, 6/15/02 1,000 1,121
Lockheed Martin,
7.20%, 5/1/36 550 586
News America Holdings,
7.75%, 12/1/45 1,400 1,461
Racers Kellogg,
5.75%, 2/2/01 <F3> 600 596
U.S. Surgical Corp.,
7.25%, 3/15/08 815 813
USX Corp.,
7.20%, 2/15/04 500 518
Weyerhaeuser Co.,
6.95%, 10/1/27 950 946
9,043
Insurance (1.6%):
Liberty Mutual,
8.20%, 5/4/07 <F3> 2,500 2,761
Lumbermens Mutual,
8.30%, 12/1/37 <F3> 475 505
Metropolitan Life Insurance Co.,
6.30%, 11/1/03 <F3> 1,800 1,789
Prudential Insurance,
8.30%, 7/1/25 1,335 1,489
6,544
Oil & Gas Exploration,
Production & Services (0.1%):
Occidental Petroleum,
7.20%, 4/1/28 420 418
Oil & Gas Utility (0.2%):
KN Energy, Inc.,
7.25%, 3/1/28 800 803
Publishing (0.6%):
Time Warner, Inc.,
7.75%, 6/15/05 1,750 1,857
Time Warner, Inc.,
9.15%, 2/1/23 425 520
2,377
Retail (0.6%):
Dayton Hudson Co.,
6.40%, 2/15/03 1,650 1,648
J.C. Penney & Co., Inc.,
7.60%, 4/1/07 700 747
2,395
Telecommunications (0.7%):
Telecommunications, Inc.,
9.80%, 2/1/12 2,425 3,034
Utilities--Electric (0.7%):
Western Resources, Inc.,
6.88%, 8/1/04 3,000 3,075
Utilities--Telecommunications
(0.0%):
Bell Atlantic Financial Service,
5.75%, 4/1/03,
Callable 4/1/01 @ 102.3 <F3> 200 208
Total Corporate Bonds (Cost $50,665) 51,023
Rights & Warrants (0.0%)
Spain (0.0%):
Utilities--Telecommunications
(0.0%):
Telefonica de Espana,
Expire 5/7/98 4,000 3
Total Spain 3
Total Rights & Warrants (Cost $0) 3
U.S. Treasury Notes (9.5%)
6.25%, 5/31/99 9,051 9,116
6.00%, 8/15/00 9,584 9,664
6.38%, 3/31/01 3,865 3,941
6.63%, 3/31/02 3,402 3,516
5.75%, 4/30/03 1,530 1,537
7.88%, 11/15/04 783 873
7.00%, 7/15/06 300 324
5.50%, 2/15/08 3,865 3,816
6.63%, 2/15/27 4,831 5,235
6.13%, 11/15/27 2,015 2,064
Total U.S. Treasury Notes (Cost $40,130) 40,086
U.S. Government Agencies (1.5%)
Federal Home Loan Bank (0.2%):
5.75%, 4/30/01 785 784
Federal Home Loan Mortgage
Corp. (0.4%):
7.00%, 5/1/28 1,742 1,763
Federal National Mortgage
Assoc. (0.9%):
5.63%, 3/15/01 890 887
6.55%, 9/12/05 2,725 2,820
3,707
Total U.S. Government Agencies
(Cost $6,242) 6,254
U.S. Government Mortgage Backed (12.2%)
Federal Home Loan Mortgage
Corp. (2.8%):
7.50%, 4/1/07, Gold Pool #E35216 229 235
6.50%, 7/1/10, Gold Pool #E20189 518 521
6.50%, 12/1/10, Gold Pool #E00408 1,622 1,630
8.50%, 6/1/12, Pool #G10783 1,474 1,533
8.00%, 9/1/17, Pool #A01373 1,596 1,652
9.00%, 6/1/19, Pool #555324 1,163 1,232
8.50%, 7/1/21, Pool #555275 1,601 1,683
6.25%, 5/15/27 1,515 1,501
7.00%, 3/1/28, Pool #C00592 1,631 1,651
11,638
Federal National Mortgage
Assoc. (2.4%):
6.00%, 11/1/08, Pool #247872 1,458 1,442
8.50%, 5/1/12, Pool #401621 324 338
6.00%, 2/1/13, Pool #417022 1,613 1,590
6.00%, 3/1/13, Pool #421248 646 637
6.00%, 4/1/13, Pool #402299 1,664 1,639
7.00%, 9/1/27, Pool #397614 650 657
7.00%, 12/1/27, Pool #398139 577 584
7.00%, 12/1/27, Pool #398127 972 983
6.50%, 1/1/28, Pool #398188 619 613
6.50%, 2/1/28, Pool #416632 577 571
7.00%, 2/1/28, Pool #409997 983 993
10,047
Government National Mortgage
Assoc. (7.0%):
9.50%, 7/15/09, Pool #34413 151 163
9.00%, 10/15/09, Pool #780592 949 1,019
9.00%, 12/15/09, Pool #780009 752 806
8.50%, 7/15/10, Pool #780516 579 612
9.00%, 11/15/16, Pool #190846 126 135
9.00%, 9/15/19, Pool #271709 440 469
7.50%, 9/15/21, Pool #355350 938 962
8.50%, 3/15/23, Pool #342556 246 258
7.00%, 10/15/23, Pool #354660 3,005 3,040
7.50%, 11/15/23, Pool #366573 850 873
7.00%, 12/15/23, Pool #780468 2,592 2,632
7.00%, 12/15/23, Pool #780577 2,390 2,427
7.50%, 12/15/23, Pool #780359 2,210 2,277
7.50%, 12/15/23, Pool #780598 2,566 2,645
7.00%, 1/15/24, Pool #371006 743 751
7.00%, 6/15/24, Pool #780502 2,491 2,529
7.50%, 11/15/24, Pool #780467 687 708
7.00%, 2/15/26, Pool #421684 1,057 1,070
7.00%, 11/15/26, Pool #780463 1,179 1,197
7.50%, 7/15/27, Pool #447756 598 614
7.50%, 8/15/27, Pool #455273 161 166
7.50%, 8/15/27, Pool #456543 438 450
7.50%, 10/15/27, Pool #453371 283 291
7.50%, 12/15/27, Pool #461605 462 474
7.50%, 2/15/28, Pool #410449 527 542
7.50%, 2/15/28, Pool #467669 803 825
6.50%, 4/15/28, Pool #442331 1,639 1,624
29,559
Total U.S. Government Mortgage Backed
(Cost $50,780) 51,244
Total Investments (Cost $330,512) <F1>--99.7% 420,189
Other assets in excess of liabilities 0.3% 1,315
TOTAL NET ASSETS--100.0% $421,504
<FN>
<F1> Cost for federal income tax purposes differs from value by net unrealized appreciation of securities
as follows (amounts in thousands):
Unrealized appreciation $92,014
Unrealized depreciation (2,337)
Net unrealized appreciation $89,677
<F2> Non-income producing securities.
<F3> 144a security which is restricted as to resale to institutional investors.
<F4> 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, 1998.
ADR--American Depository Receipt
CMO--Collateratlized Mortgage Obligation
</FN>
See notes to financial statements.
</TABLE>
<TABLE>
THE VICTORY PORTFOLIOS Schedule of Investments
Convertible Securities Fund April 30, 1998
(Amounts in Thousands, Except Shares) (Unaudited)
<CAPTION>
Shares or
Principal Market
Security Description Amount Value
<S> <C> <C>
Commercial Paper (1.9%)
Associates Corp., N.A.,
5.56%, 5/1/98 2,376 $ 2,376
Total Commercial Paper (Cost $2,376) 2,376
Common Stocks (6.5%)
Banks (3.4%):
Commerce Bancorp, Inc. 34,650 1,988
First Republic Bancorp, Inc. 37,000 1,272
Mercantile Bancorporation, Inc. 17,000 941
4,201
Forest Products (0.8%):
Fort James Corp. 20,000 993
Oil Marketing & Refining (0.8%):
Ultramar Diamond Shamrock Corp. 28,868 933
Oilfield Services & Equipment (0.6%):
ICO, Inc. 36,050 780
Real Estate (0.5%):
Excel Realty Trust, Inc. 19,188 512
Steel (0.4%):
AK Steel Holding Corp. 20,000 420
Total Common Stocks (Cost $4,630) 7,839
Convertible Bonds (40.6%)
Advertising (0.3%):
Omnicom Group, Inc.,
Subordinated Debentures,
2.25%, 1/6/13,
Callable 12/31/01 @ 112.84 <F3> 325 372
Apparel--Footwear (0.6%):
Genesco, Inc., Subordinated Notes,
5.50%, 4/15/05,
Callable 4/17/01 @ 103.14 <F3> 750 785
Automotive Parts (1.2%):
Pep Boys--Manny, Moe & Jack,
Subordinated Notes,
4.00%, 9/1/99,
Callable 9/15/98 @ 100 1,500 1,479
Banks (0.5%):
Midlantic Corp.,
Subordinated Debentures,
8.25%, 7/1/10,
Continuously Callable @ 100 250 648
Broadcasting & Publishing (1.8%):
Scholastic Corp., Subordinated Notes,
5.00%, 8/15/05,
Callable 8/15/98 @ 100 <F3> 1,000 900
Thomas Nelson, Inc.,
Subordinated Notes,
5.75%, 11/30/99,
Continuously Callable
@ 103.29 <F3> 1,325 1,315
2,215
Commercial Services (2.2%):
CUC International, Inc.,
Subordinated Notes,
3.00%, 2/15/02,
Callable 2/15/00 @ 101.2 <F3> 250 259
Ogden Corp., Euro-Dollar
Subordinated Notes,
5.75%, 10/20/02 2,015 1,975
PhyMatrix Corp.,
Subordinated Debentures,
6.75%, 6/15/03,
Callable 6/18/99 @ 103.86 500 409
2,643
Computers & Peripherals (4.8%):
Convex Computer Corp.,
Subordinated Debentures,
6.00%, 3/1/12,
Continuously Callable @ 100 500 489
Data General Corp.,
Subordinated Notes,
6.00%, 5/15/04,
Callable 5/18/00 @ 103.43 750 720
EMC Corp., Subordinated Notes,
3.25%, 3/15/02,
Callable 3/15/00 @ 101.3 500 1,056
HMT Technology Corp.,
Subordinated Notes,
5.75%, 1/15/04,
Callable 1/20/00 @ 103.29 <F3> 250 218
HMT Technology Corp.,
Subordinated Notes,
5.75%, 1/15/04,
Callable 1/20/00 @ 103.29 1,500 1,304
Micron Technology, Inc.,
Subordinated Notes,
7.00%, 7/1/04,
Callable 7/3/01 @ 103 1,000 964
Read-Rite Corp.,
Subordinated Notes,
6.50%, 9/1/04,
Callable 9/7/00 @ 103.7 1,250 1,006
5,757
Conglomerates (1.1%):
MascoTech, Inc.,
Subordinated Debentures,
4.50%, 12/15/03,
Callable 12/15/97 @ 102.5 1,500 1,395
Electronic & Electrical--
General (0.5%):
Lam Research Corp.,
Subordinated Notes,
5.00%, 9/1/02 <F3> 750 653
Electronic Components/
Instruments (0.8%):
VLSI Technology, Inc.,
Subordinated Notes,
8.25%, 10/1/05,
Callable 10/3/99 @ 102.48 1,000 991
Financial Services (0.8%):
Fort Bend Holding Corp.,
Subordinated Debentures,
8.00%, 12/1/05,
Callable 12/1/98 @ 105.6 400 1,008
Hazardous Waste Disposal (0.6%):
OHM Corp., Debentures,
8.00%, 10/1/06 750 729
Health Care (1.0%):
NovaCare, Inc.,
Subordinated Debentures,
5.50%, 1/15/00,
Callable 1/15/99 @ 100.79 500 473
Quantum Health Resources, Inc.,
Subordinated Debentures,
4.75%, 10/1/00,
Callable 10/1/98 @ 101.36 750 707
1,180
Hotels & Motels (1.8%):
CapStar Hotel Co.,
Subordinated Notes,
4.75%, 10/15/04,
Callable 10/15/00 @ 100 500 471
Hilton Hotels Corp.,
Subordinated Notes,
5.00%, 5/15/06,
Callable 5/15/99 @ 102.86 1,500 1,710
2,181
Insurance (0.0%):
First Central Financial Corp.,
Subordinated Debentures,
9.00%, 8/1/00,
Callable 8/1/98 @ 100.63 <F4> 76 0
Medical Equipment & Supplies (0.9%):
ThermoTrex Corp.,
3.25%, 11/1/07,
Callable 11/1/00 @ 100,
Guaranteed by Thermo Electron 1,120 1,079
Medical--Biotechnology (0.6%):
Chiron Corp., Subordinated Notes,
1.90% , 11/17/00,
Callable 11/17/98 @ 95.08 750 698
Medical--Hospital Services (0.7%):
Medical Care International,
Subordinated Debentures,
6.75%, 10/1/06,
Callable 10/1/01 @ 100 1,000 900
Oil & Gas Exploration,
Production & Services (1.5%):
Lomak Petroleum, Inc.,
Subordinated Debentures,
6.00%, 2/1/07,
Callable 2/1/00 @ 104 <F3> 750 725
SFP Pipeline Holdings, Inc.,
Debentures, 11.16%, 8/15/10 500 894
Texaco Capital,
3.50%, 8/5/04 250 258
1,877
Oil-Integrated Companies (0.8%):
Pennzoil Co.,
Subordinated Debentures,
6.50%, 1/15/03,
Callable 1/15/99 @ 102.6 500 1,013
Oilfield Services & Equipment (1.7%):
Diamond Offshore Drilling, Inc.,
Subordinated Notes,
3.75%, 2/15/07,
Callable 2/22/01 @ 102.08 475 634
Loews Corp., Subordinated Notes,
3.13%, 9/15/07,
Callable 9/15/02 @ 101.56,
Convertible into Shares of
Diamond Offshore Drilling, Inc. 1,400 1,407
2,041
Pharmaceuticals (3.1%):
ALZA Corp.,
Subordinated Debentures,
5.00%, 5/1/06,
Callable 5/1/01 @ 102.14 1,475 2,029
Atrix Labs, Inc.,
Subordinated Notes,
7.00%, 12/1/04,
Callable 12/5/00 @ 103 <F3> 500 574
Omnicare, Inc.,
Subordinated Debentures,
5.00%, 12/1/07,
Callable 12/6/00 @ 103.5 <F3> 1,000 1,106
3,709
Pollution Control Services
& Equipment (1.0%):
USA Waste Services, Inc.,
Subordinated Notes,
4.00%, 2/1/02,
Callable 2/1/00 @ 101.6 1,000 1,230
Precision Instruments
& Related (0.9%):
Thermo Instruments,
4.00%, 1/15/05,
Callable 1/15/01 @ 100 1,100 1,129
Primary Metal & Mineral
Production (1.0%):
Homestake Mining Co.,
Subordinated Debenture,
5.50%, 6/23/00,
Continuously Callable @ 100 <F3> 1,250 1,184
Real Estate (0.9%):
Avatar Holdings,
Subordinated Notes,
7.00%, 4/1/05,
Callable 4/6/01 @ 104 1,000 1,095
Real Estate Investment
Trusts (1.9%):
Health Care Property
Investors, Inc., Subordinated Notes,
6.00%, 11/8/00,
Callable 11/15/98 @ 100 <F3> 950 886
Macerich Co., Subordinated Notes,
7.25%, 12/15/02,
Callable 6/15/02 @ 100 <F3> 500 517
Meditrust, Debentures,
7.50%, 3/1/01,
Callable @ Par 840 886
2,289
Retail--Department Stores (0.7%):
Saks Holdings, Inc.,
Subordinated Notes,
5.50%, 9/15/06,
Callable 9/15/99 @ 103.85 1,000 868
Retail--Drug Stores (0.9%):
Rite Aid Corp.,
Subordinated Notes,
5.25%, 9/15/02,
Callable 9/15/00 @ 102.1 <F3> 1,000 1,123
Retail--Specialty Stores (2.1%):
Corporate Express, Inc.,
4.50%, 7/1/00,
Callable 7/1/99 @ 101.13 750 682
Michaels Stores, Inc.,
Subordinated Notes,
6.75%, 1/15/03,
Callable 1/15/99 @ 102.62 750 757
The Sports Authority, Inc.,
Subordinated Notes,
5.25%, 9/15/01,
Callable 9/15/99 @ 102.10 750 685
The Sports Authority, Inc.,
Subordinated Notes,
5.25%, 9/15/01,
Callable 9/15/99 @ 102.10 <F3> 500 457
2,581
Shipbuilding (1.4%):
Halter Marine Group, Inc.,
Subordinated Notes,
4.50%, 9/15/04,
Callable 9/15/00 @ 102.57 2,000 1,743
Telecommunications (1.4%):
DSC Communications Corp.,
Subordinated Notes,
7.00%, 8/1/04,
Callable 8/1/00 @ 104 <F3> 750 690
Tel-Save Holdings,
Subordinated Notes,
5.00%, 12/15/04,
Callable 12/18/02 @ 101.43 <F3> 1,000 1,014
1,704
Transportation Services (0.5%):
Offshore Logistics,
Subordinated Notes,
6.00%, 12/15/03,
Callable 12/15/99 @ 103.43 500 599
Wholesale Distribution (0.6%):
Richey Electronics, Inc.,
Subordinated Notes,
7.00%, 3/1/06,
Callable 3/4/99 @ 103.5 750 719
Total Convertible Bonds (Cost $46,521) 49,617
Convertible Preferred Stock (48.0%)
Banks (5.5%):
Golden State Bancorp,
8.75%, Series A,
Callable 10/1/98 @ $26.094 26,000 2,451
Jefferson-Pilot Corp.,
7.25% 27,700 3,626
Matewan Bancshares, Inc.,
7.50%, Series A,
Callable 3/15/00 @ $26.125 19,000 561
6,638
Broadcasting & Publishing (1.1%):
Houston Industries, Inc.,
7.00%, 7/1/00 19,500 1,353
Broadcasting/Cable (2.9%):
CSC Holdings, Inc.,
8.50%, Series I,
Callable 11/1/99 @ $25.70 74,000 3,552
Commercial Services (0.8%):
Cendant Corp.,
7.50%, 2/16/01 10,000 412
Cendant Corp.,
3.00%, 2/15/02,
Callable 2/15/00 @ 101.20 525,000 557
969
Computers & Peripherals (1.0%):
Unisys Corp., $3.75, Series A 25,000 1,228
Conglomerates (1.0%):
Corning Delaware L.P.,
6.00%, Callable 8/5/98 @ $51.80,
Guaranteed by Corning, Inc. 20,000 1,263
Construction (1.0%):
Beazer Homes USA, Inc.,
8.00%, Series A,
Callable 9/1/98 @ $26.25 35,000 1,164
Containers--Metal, Glass, Paper,
Plastic (1.3%):
Crown Cork & Seal, Co., Inc.,
4.50% 34,000 1,643
Financial Services (1.9%):
MCN Financing III, 8.00% 13,100 773
Merrill Lynch, IMC Global, Inc.
STRYPES, 6.25% 25,000 903
Salomon, Inc.,
6.25%, 2/1/01, Series CSN 10,000 686
2,362
Food Processing & Packaging (1.0%):
Ralston Purina Co., 7.00% 20,000 1,218
Food Products (1.2%):
Suzia Foods Corp.,
5.50%, 4/1/28,
Callable 4/1/1 @ $51.72 <F3> 30,000 1,474
Health & Personal Care (0.8%):
DECS Trust III,
8.75%, 2/15/01 40,000 965
Home Decoration Products (0.7%):
Newell Financial Trust I,
5.25%, 12/1/27,
Callable 12/1/01 @ $51.58 <F3> 15,000 849
Hotels & Motels (0.4%):
Signature Inns, Inc.,
$1.70, Series A 26,000 465
Insurance (3.5%):
American Bankers Insurance,
$3.125, Series B,
Callable 8/7/00 @ $51.88 9,000 1,125
Conseco Finance Trust IV,
7.00%, 2/16/01, Series F 51,500 2,810
PLC Capital Trust II, 6.50% 4,500 281
4,216
Oil & Gas Exploration,
Production & Services (2.9%):
Belco Oil & Gas Corp., 6.50% 40,000 1,035
Lomak Financing Trust,
5.75%,
Callable 11/4/00 @ $52.013 <F3> 20,000 855
Western Gas Resources, Inc.,
$2.625,
Callable 2/16/99 @ $51.313 40,000 1,628
3,518
Oil-Integrated Companies (2.6%):
Unocal Corp.,
6.25%, Callable 9/3/00 @ $50.00 55,000 3,149
Paper and Forest Products (1.8%):
International Paper Co.,
5.25%,
Callable 6/30/99 @ $50.00,
Guaranteed by
International Paper Co. 40,000 2,220
Primary Metal & Mineral
Production (0.8%):
Cyprus Amax Minerals Co.,
$4.00,
Callable 12/18/98 @ $51.60 20,000 985
Publishing (0.7%):
Readers Digest,
1.93%, 2/15/01 35,000 914
Real Estate Investment
Trusts (4.8%):
Camden Property Trust,
$2.25, Series A,
Callable 4/30/01 @ $32.464 25,000 691
Equity Residential Properties Trust,
7.00%, Series E,
Callable 11/1/98 @ $25.875 5,500 150
FelCor Suite Hotels, Inc.,
$1.95, Series A,
Callable 4/30/01 @ $25.00 40,000 1,145
Glenborough Realty Trust,
7.75%, Series A,
Callable 1/16/03 @ $25.97 13,000 332
Merry Land & Investment Co., Inc.,
$2.15, Series C,
Callable 3/31/00 @ $25.00 36,500 981
Rouse Co., $3.00, Series B 25,500 1,273
Vornado Realty Trust,
6.50%, Series A 21,000 1,208
5,780
Restaurants (1.1%):
Wendys Financing I,
5.00%, 9/15/26 Series A 25,000 1,384
Retail (0.5%):
K-Mart Financing,
7.75%,
Callable 6/17/99 @ $52.713 10,000 658
Software & Computer Services
(1.3%):
Microsoft Corp.,
$2.196, Series A 17,000 1,583
Steel (0.4%):
USX Capital Trust I,
6.75%,
Callable 4/1/99 @ $51.30 10,500 536
Telecommunications (3.1%):
AirTouch Communications, Inc.,
4.25%, Series C,
Callable 8/16/00 @ $50.00 20,000 1,535
Intermedia Communications,
7.00%
Callable 10/18/00 @ $26.00 <F3> 15,000 486
SBC Communications, Inc.,
7.75%, Convertible into
Shares of Telefonos de
Mexico or Cash 10,000 518
Sprint Corp., 8.25%, 3/31/00 20,000 1,223
3,762
Tobacco & Tobacco Products (0.3%):
DECS Trust,
8.50%,
Convertible to .8333 Shares
of Dimon, Inc. 24,000 405
Transportation Leasing
& Trucking (0.5%):
Automatic Common Exchange
Security Trust II,
6.50%, Convertible to shares
of Republic Industries, Inc.,
TRACES 25,000 650
Transportation Services (1.3%):
Union Pacific Capital,
6.25%, 4/1/28,
Callable 4/10/01 @ $51.56 <F3> 30,000 1,635
Utilities--Electric (1.8%):
AES Trust,
5.38%, Series A,
Callable 3/31/00 @ $51.68,
Guaranteed by AES Corp. 10,000 829
Citizens Utilities Trust,
5.00%,
Callable 2/1/99 @ $50.00,
Guaranteed by Citizens
Utility Co. 16,500 796
El Paso Energy Capital,
4.75%, 3/31/28,
Callable 3/31/02 @ $51.43 10,000 526
2,151
Total Convertible Preferred Stock
(Cost $49,251) 58,689
Corporate Bonds (1.3%)
Financial Services (0.9%):
Bank Plus Corp., Senior Notes,
12.00%, 7/18/07,
Callable 11/15/05 @ 110 1,000 1,130
Insurance (0.4%):
National Reinsurance Corp.,
Senior Notes, 8.85%, 1/15/05 400 449
Total Corporate Bonds (Cost $1,507) 1,579
Preferred Stocks (1.6%)
Banks (1.6%):
California Federal Preferred Capital,
9.13%, Series A,
Callable 12/31/02 @ $26.14 20,000 540
Chevy Chase Savings Bank,
13.00%,
Callable 5/1/03 @ $27.25 25,000 775
Riggs National Corp.,
10.75%, Series B,
Callable 10/1/98 @ $27.25 25,000 688
Total Preferred Stocks (Cost $1,822) 2,003
Total Investments (Cost $106,107) <F1>--99.9% 122,103
Liabilities in excess of other assets 0.1% 45
TOTAL NET ASSETS--100.0% $122,148
<FN>
<F1> Cost for federal income tax purposes differs from value by net unrealized appreciation of securities
as follows (amounts in thousands):
Unrealized appreciation $17,877
Unrealized depreciation (1,881)
Net unrealized appreciation $15,996
<F2> Non-income producing securities.
<F3> 144a security which is restricted as to resale to institutional investors.
<F4> Security has defaulted on interested payments.
STRYPES--Structured Yield Product Exchangeable for Stock
TAPS--Threshold Appreciation Price Secutities
TRACES--Trust Automatic Common Exchange Securities
</FN>
See notes to financial statements.
</TABLE>
<TABLE>
THE VICTORY PORTFOLIOS Schedule of Investments
Real Estate Investment Fund April 30, 1998
(Amounts in Thousands, Except Shares) (Unaudited)
<CAPTION>
Shares or
Principal Market
Security Description Amount Value
<S> <C> <C>
Common Stocks (84.5%)
Commercial Services (4.5%):
Corrections Corp. of America <F2> 3,000 $ 83
Insignia Financial Group, Inc.
Class A <F2> 15,000 399
Omega Worldwide, Inc. <F2> 1 0
Wackenhut Corrections Corp. <F2> 5,000 131
613
Real Estate Investment Trusts (77.7%):
Diversified (20.8%):
Avatar Holdings, Inc. <F2> 6,000 161
Capital Automotive REIT 7,500 117
Captec Net Lease Realty, Inc. 10,000 161
CCA Prison Realty Trust 10,000 354
First Union Real Estate Investments 10,000 103
General Growth Properties 5,000 179
Glenborough Realty Trust, Inc. 3,000 80
Grove Property Trust 10,000 108
JP Realty, Inc. 12,000 290
Kimco Realty Corp. 4,000 148
Security Capital U.S. Realty 7,000 92
The Macerich Co. 6,000 168
TrizecHahn Corp. 14,000 323
Vornado Realty Trust 14,000 561
2,845
Health Care (5.0%):
Alexandria Real Estate Equities, Inc. 7,000 231
Capstone Capital Corp. 5,000 119
ElderTrust 3,000 50
Meditrust Cos. 7,000 210
Omega Healthcare Investors, Inc. <F2> 2,000 70
680
Office (27.4%):
Arden Realty, Inc. 5,000 140
Boston Properties, Inc. <F2> 12,000 397
Brandywine Realty Trust 20,000 455
Cornerstone Properties, Inc. 21,000 378
Cousins Properties, Inc. 7,000 212
Crescent Real Estate Equities Co. 10,000 341
Equity Office Properties Trust 15,000 427
Koger Equity, Inc. 6,000 129
Mack-Cali Realty Corp. 10,000 376
Reckson Associates Realty Corp. 10,000 245
Spieker Properties, Inc. 12,000 474
TriNet Corporate Realty Trust, Inc. 5,000 179
3,753
Residential (19.6%):
Ambassador Apartments, Inc. 4,250 87
Apartment Investment &
Management Co., Class A 5,000 187
Avalon Properties, Inc. 12,000 338
Bay Apartment Communities, Inc. 12,000 444
Camden Property Trust 5,000 147
Equity Residential Properties Trust 10,000 491
Gables Residential Trust 13,000 354
Manufactured Home Communities, Inc. 15,000 379
Merry Land & Investment Co., Inc. 2,000 42
Summit Properties, Inc. 10,000 204
2,673
Retail (4.9%):
Excel Realty Trust, Inc. 6,000 161
Simon DeBartolo Group, Inc. 10,000 329
Westfield America, Inc. 10,000 175
665
Total Real Estate Investment Trusts 10,616
Transportation Services (2.3%):
St. Joe Corp. 10,000 316
Total Common Stocks (Cost $11,464) 11,545
Discount Note (15.1%)
Federal Home Loan Mortgage
Corp. (15.2%):
0.00%, 5/1/98 2,074 2,074
Total Discount Note (Cost $2,073) 2,074
Warrants (0.0%)
Real Estate (0.0%):
Security Capital Group,
Class B, expires 9/18/98 <F2> 339 1
Total Warrants (Cost $0) 1
Total Investments (Cost $13,537) <F1>--99.6% 13,620
Other assets in excess of liabilities 0.4% 48
TOTAL NET ASSETS--100.0% $13,668
<FN>
<F1> Cost for federal income tax purposes differs from value by net unrealized appreciation of securities
as follows (amounts in thousands):
Unrealized appreciation $ 453
Unrealized depreciation (370)
Net unrealized appreciation $ 83
<F2> Non-income producing securities.
</FN>
See notes to financial statements.
</TABLE>
<TABLE>
THE VICTORY PORTFOLIOS Schedule of Investments
Value Fund April 30, 1998
(Amounts in Thousands, Except Shares) (Unaudited)
<CAPTION>
Shares or
Principal Market
Security Description Amount Value
<S> <C> <C>
Commercial Paper (1.3%)
Financial Services (1.3%):
Associates Corp., N.A.,
5.56%, 5/1/98 6,841 $ 6,841
Total Commercial Paper (Cost $6,841) 6,841
Common Stocks (98.7%)
Aerospace/Defense (3.1%):
AlliedSignal, Inc. <F3> 166,940 7,314
Boeing Co. <F3> 109,000 5,457
Raytheon Co--Class B 67,000 3,798
16,569
Aluminum (0.9%):
Aluminum Co. of America <F3> 62,800 4,867
Automobiles (2.4%):
Chrysler Corp. 201,400 8,094
General Motors Corp. 73,000 4,918
13,012
Banks (9.0%):
BankAmerica Corp. 157,000 13,343
Chase Manhattan Corp. 23,300 3,229
First Union Corp. <F3> 173,000 10,445
J.P. Morgan & Co., Inc. 17,000 2,231
Mellon Bank Corp. 95,000 6,840
U.S. Bancorp <F3> 65,400 8,306
Wells Fargo & Co. 12,000 4,422
48,816
Beverages (2.6%):
Anheuser-Busch Co., Inc. <F3> 147,900 6,776
PepsiCo, Inc. 184,500 7,322
14,098
Chemicals--General (1.2%):
Air Products & Chemicals, Inc. 48,500 4,217
RPM, Inc. <F3> 125,000 2,156
6,373
Commercial Services (0.6%):
Automatic Data Processing, Inc. <F3> 48,800 3,267
Computers & Peripherals (5.3%):
Bay Networks, Inc. <F2> 90,000 2,109
Cisco Systems, Inc. <F2> <F3> 75,000 5,494
Hewlett-Packard Co. <F3> 70,000 5,272
International Business
Machines Corp. 138,100 16,002
28,877
Conglomerates (0.7%):
Textron, Inc. 48,800 3,819
Consumer Products (0.4%):
Colgate-Palmolive Co. <F3> 25,000 2,242
Containers (1.1%):
Newell Co. 67,000 3,237
Sonoco Products Co. 65,000 2,612
5,849
Cosmetics & Related (1.0%):
Avon Products, Inc. 69,100 5,679
Electrical Equipment (2.7%):
Emerson Electric Co. 92,400 5,879
General Electric Co. 100,600 8,564
14,443
Electronic & Electrical--
General (0.7%):
Millipore Corp. <F3> 109,000 3,761
Financial Services (3.7%):
Federal National Mortgage Assoc. 147,100 8,807
Franklin Resources, Inc. 159,300 8,523
Household International, Inc. 20,000 2,629
19,959
Food Processing & Packaging (3.1%):
ConAgra, Inc. 341,200 9,959
Sara Lee Corp. 113,900 6,784
16,743
Forest Products--
Lumber & Paper (1.2%):
Bowater, Inc. <F3> 50,000 2,797
Mead Corp. <F3> 111,400 3,857
6,654
Health Care (1.2%):
Columbia/HCA Healthcare Corp. <F3> 205,200 6,759
Insurance--Multi-Line (4.8%):
Allstate Corp. 146,000 14,052
Everest Reinsurance Holdings, Inc. 120,069 4,953
General Reinsurance Corp. 31,900 7,132
26,137
Insurance--Property, Casualty,
Health (0.9%):
American General Corp. <F3> 72,400 4,824
Medical Supplies (1.4%):
Biomet, Inc. 118,000 3,540
Medtronic, Inc. 72,000 3,789
7,329
Mining (0.3%):
Cyprus Amax Minerals Co. <F3> 105,000 1,811
Newspapers (0.6%):
Dow Jones & Co., Inc. 70,000 3,408
Oil-Integrated Companies (9.9%):
Atlantic Richfield Co. 52,800 4,118
Chevron Corp. 156,800 12,965
Mobil Corp. 198,000 15,642
Phillips Petroleum Co. 148,000 7,335
Texaco, Inc. 232,400 14,293
54,353
Oilfield Services & Equipment (1.0%):
Baker Hughes, Inc. <F3> 89,050 3,607
Schlumberger Ltd. <F3> 21,000 1,740
5,347
Paint, Varnishes, Enamels (0.6%):
Sherwin-Williams Co. 88,800 3,164
Pharmaceuticals (7.3%):
Abbott Laboratories 55,800 4,080
American Home Products Corp. 73,000 6,798
Merck & Co., Inc. 46,800 5,639
Pfizer, Inc. 168,100 19,133
Schering-Plough Corp. 49,000 3,926
39,576
Pollution Control Services
& Equipment (0.6%):
Waste Management, Inc. 102,000 3,417
Radio & Television (1.8%):
Cox Communications, Inc.,
Class A <F2> <F3> 68,500 3,057
Viacom, Inc., Class B <F2> <F3> 119,000 6,902
9,959
Railroads (1.1%):
Union Pacific Corp. <F3> 104,600 5,727
Retail (1.8%):
Dayton Hudson Corp. 110,000 9,604
Retail--Department Stores (2.2%):
J.C. Penney Co., Inc. 76,000 5,401
May Department Stores Co. <F3> 107,800 6,650
12,051
Retail--Drug Stores (0.8%):
Walgreen Co. <F3> 120,000 4,140
Retail--Specialty Stores (1.5%):
AutoZone, Inc. <F2> <F3> 122,200 3,689
Lowe's Cos., Inc. 65,000 4,546
8,235
Semiconductors (1.8%):
Intel Corp. 80,000 6,465
LSI Logic Corp. <F2> 128,600 3,488
9,953
Software & Computer
Services (2.4%):
Microsoft Corp. <F2> <F3> 75,300 6,786
Oracle Corp. <F2> 243,400 6,298
13,084
Steel (0.7%):
USX--U.S. Steel Group, Inc. <F3> 91,000 3,560
Tax Return Preparation (0.2%):
H&R Block, Inc. 26,700 1,202
Telecommunications--
Equipment (0.6%):
Lucent Technologies, Inc. <F3> 42,300 3,220
Tobacco & Tobacco Products (1.3%):
Philip Morris Cos., Inc. 184,300 6,877
Utilities--Electric (5.0%):
CINergy Corp. 88,000 3,069
Consolidated Edison Co.
of New York, Inc. <F3> 46,000 2,082
Duke Energy Corp. 70,500 4,080
Houston Industries, Inc. 226,300 6,577
PacifiCorp 190,200 4,422
Texas Utilities Co. 174,000 6,960
27,190
Utilities--Gas (1.3%):
Enron Corp. <F3> 114,000 5,607
Sonat, Inc. 31,000 1,376
6,983
Utilities--Telecommunications
(7.9%):
ALLTEL Corp. 36,800 1,573
Ameritech Corp. 195,800 8,334
Bell Atlantic Corp. <F3> 38,100 3,565
GTE Corp. 180,000 10,519
MCI Telecommunications Corp. 255,400 12,849
WorldCom, Inc. <F2> <F3> 136,000 5,818
42,658
Total Common Stocks (Cost $336,055) 535,596
Short Term Securities Held
As Collateral (13.0%):
General American Funding Agreement,
5.89%<F4>, 5/1/98 15,000 15,000
AIM Short Term Prime Obligations
Money Market Fund 639,505 640
AIM Liquid Assets Money Market Fund 378,491 378
Bache Corp., Repurchase Agreement
(Collateralized by $10,584
U.S. Treasury Bill, 0.00%, 1/7/99
market value--$10,201) 10,000 10,000
Golman, Repurchase Agreement
(Collateralized by $15,960
various Corporate Bonds,
5.84%-7.95%, 5/12/05-9/3/49,
market value--$16,958) 15,000 15,000
Morgan Stanley Corp.,
Repurchase Agreement
(Collateralized by $17,168
various Corporate Bonds,
0.00%-9.98%, 4/1/08-1/15/37,
market value--$15,625) 15,000 15,000
Salomon Corp.,
Repurchase Agreement
(Collateralized by $15,096
various Corporate Bonds,
6.75%-7.25%, 11/1/02-2/1/27,
market value--$15,804) 15,000 15,000
Total Short Term Securities Held
As Collateral (Cost $71,018) 71,018
Total Investments (Cost $413,914) <F1>--113.0% 613,455
Other liabilities in excess of assets (13.0)% (70,958)
TOTAL NET ASSETS--100.0% $542,497
<FN>
<F1> Cost for federal income tax purposes differs from value by net unrealized appreciation of securities
as follows (amounts in thousands):
Unrealized appreciation $205,134
Unrealized depreciation (5,594)
Net unrealized appreciation $199,541
<F2> Non-income producing securities.
<F3> All or a portion of this security was loaned as of April 30, 1998.
<F4> 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 April 30, 1998.
</FN>
See notes to financial statements.
</TABLE>
<TABLE>
THE VICTORY PORTFOLIOS Schedule of Investments
Lakefront Fund April 30, 1998
(Amounts in Thousands, Except Shares) (Unaudited)
<CAPTION>
Shares or
Principal Market
Security Description Amount Value
<S> <C> <C>
Common Stocks (98.7%)
Aerospace/Defense (3.3%):
Boeing Co. 401 $ 20
United Technologies Corp. 295 29
49
Aluminum (1.9%):
Reynolds Metal Co. 425 28
Apparel--Footwear (1.1%):
Reebok International Ltd. <F2> 549 16
Automobiles (0.9%):
Ford Motor Co. 298 14
Automotive Parts (1.0%):
TRW, Inc. 281 15
Banks (9.8%):
Bankers Trust New York Corp. 240 31
Chase Manhattan Corp. 355 50
Citicorp 200 30
Wells Fargo & Co. 93 34
145
Brokerage Services (7.6%):
Lehman Brothers Holdings, Inc. 1,190 84
Paine Webber Group, Inc. 637 29
113
Building Materials (1.0%):
Armstrong World Industries, Inc. 170 15
Chemicals--General (0.7%):
IMC Global, Inc. 280 10
Computers & Peripherals (9.9%):
Diebold, Inc. 810 33
Hewlett-Packard Co. 478 36
International Business Machines Corp. 318 36
Sun Microsystems, Inc. <F2> 520 21
Western Digital Corp. <F2> 1,050 21
147
Consumer Products (2.0%):
Colgate-Palmolive Co. 336 30
Containers--Metal, Glass, Paper,
Plastic (2.0%):
Crown Cork & Seal, Inc. 570 30
Cosmetics & Related (2.6%):
Avon Products, Inc. 460 38
Electronic & Electrical--
General (4.3%):
AMP, Inc. 170 7
Johnson Controls, Inc. 247 15
Rockwell International Corp. 430 24
Varian Associates, Inc. 372 18
64
Financial Services (8.0%):
American Express Co. 331 34
Associates First Capital Corp. 78 6
Golden State Bancorp, Inc. <F2> 1,000 39
Travelers Group, Inc. 667 40
119
Heavy Machinery (5.1%):
Caterpillar Tractor, Inc. 416 24
Cummins Engine Co., Inc. 240 13
Deere & Co. 477 28
Harnischfeger Industries, Inc. 355 10
75
Household Goods--Appliances,
Furnishings & Electronics (1.1%):
Sunbeam Corp., Inc. 625 16
Medical Supplies (1.2%):
C.R. Bard, Inc. 516 18
Oil & Gas Exploration,
Production & Services (3.7%):
Columbia Gas System, Inc. 270 22
Williams Cos., Inc. 1,060 33
55
Oil-Integrated Companies (3.4%):
Mobil Corp. 328 26
Texaco, Inc. 408 25
51
Pharmaceuticals (9.8%):
Amgen, Inc. <F2> 530 32
Bristol-Myers Squibb Co. 337 36
Pharmacia & Upjohn Co. 700 29
Schering-Plough Corp. 616 49
146
Retail (3.3%):
K-Mart Corp. <F2> 2,805 49
Rubber & Rubber Products (1.2%):
M.A. Hanna Co. 793 18
Semiconductors (5.9%):
Intel Corp. 567 46
Texas Instruments, Inc. 660 42
88
Software & Computer
Services (2.9%):
Computer Associates International, Inc. 742 43
Steel (1.0%):
LTV Corp. 1,120 15
Tobacco & Tobacco Products (1.1%):
Philip Morris Cos., Inc. 433 16
Utilities--Electric (1.9%):
American Electric Power Co. 290 14
Wisconsin Energy Corp. 460 14
28
Utilities--Telecommunications
(1.0%):
Cincinnati Bell, Inc. 390 15
Total Common Stocks (Cost $1,164) 1,466
Investment Companies (0.5%)
Aim Treasury Portfolio 6,512 7
Total Investment Companies (Cost $7) 7
Total Investments (Cost $1,171) <F1>--99.2% 1,473
Other assets in excess of liabilities 0.8% 12
TOTAL NET ASSETS--100.0% $1,485
<FN>
<F1> Cost for federal income tax purposes differs from value by net unrealized appreciation of securities
as follows (amounts in thousands):
Unrealized appreciation $330
Unrealized depreciation (28)
Net unrealized appreciation $302
<F2> Non-income producing securities.
</FN>
See notes to financial statements.
</TABLE>
<TABLE>
THE VICTORY PORTFOLIOS Schedule of Investments
Diversified Stock Fund April 30, 1998
(Amounts in Thousands, Except Shares) (Unaudited)
<CAPTION>
Shares or
Principal Market
Security Description Amount Value
<S> <C> <C>
Commercial Paper (2.5%)
Associates Corp., N.A.,
5.56%, 5/1/98 26,430 $ 26,430
Total Commercial Paper (Cost $26,430) 26,430
Common Stocks (96.8%)
Aerospace/Defense (1.4%):
AlliedSignal, Inc. 322,200 14,116
Aluminum (2.3%):
Aluminum Co. of America <F3> 192,000 14,880
Reynolds Metal Co. <F3> 140,000 9,240
24,120
Banks (6.3%):
Chase Manhattan Corp. 70,000 9,699
First Union Corp. <F3> 100,000 6,038
Mellon Bank Corp. 204,000 14,688
NationsBank Corp. 205,000 15,528
Norwest Corp. 115,200 4,572
PNC Bank Corp. 235,000 14,203
64,728
Beverages (2.8%):
Anheuser-Busch Co., Inc. <F3> 330,000 15,118
PepsiCo, Inc. 360,000 14,288
29,406
Capital Goods (0.5%):
CBS Corp. <F3> 152,500 5,433
Chemicals--General (1.2%):
Nalco Chemical Co. 170,900 6,793
RPM, Inc. <F3> 347,187 5,989
12,782
Commercial Services (0.6%):
Cendant Corp. <F2> <F3> 270,000 6,750
Computers & Peripherals (10.2%):
Cabletron Systems, Inc. <F2> <F3> 248,150 3,288
Compaq Computer Corp. 250,000 7,016
Gateway 2000, Inc. <F2> <F3> 320,000 18,780
Hewlett-Packard Co. 235,000 17,698
International Business
Machines Corp. 380,200 44,056
Seagate Technology, Inc. <F2> 255,000 6,805
Sun Microsystems, Inc. <F2> <F3> 200,000 8,238
105,881
Conglomerates (2.1%):
Canadian Pacific, Ltd. 263,600 7,760
Corning, Inc. <F3> 355,000 14,200
21,960
Construction (0.3%):
Beazer Homes USA, Inc. <F2> <F3> 115,000 2,803
Containers--Metal, Glass, Paper,
Plastic (2.1%):
Crown Cork & Seal, Inc. <F3> 300,000 15,618
Sonoco Products Co. 158,000 6,350
21,968
Cosmetics & Related (1.5%):
Avon Products, Inc. <F3> 192,000 15,780
Electronic & Electrical--
General (1.8%):
Andrew Corp. <F2> <F3> 125,000 2,859
General Electric Co. 80,000 6,810
Motorola, Inc. 110,000 6,119
Vishay Intertechnology, Inc. <F2> 164,300 3,009
18,797
Financial Services (2.4%):
Bear Stearns Cos., Inc. 192,428 10,980
Franklin Resources, Inc. 50,000 2,675
Travelers Group, Inc. <F3> 180,000 11,014
24,669
Food Processing & Packaging (2.5%):
Quaker Oats Co. 200,000 10,400
Ralston Purina Group <F3> 90,160 9,557
Sara Lee Corp. 100,000 5,956
25,913
Forest Products--
Lumber & Paper (1.7%):
Bowater, Inc. <F3> 97,600 5,460
International Paper Co. <F3> 238,400 12,441
17,901
Health Care (1.5%):
Columbia HCA Healthcare Corp. 373,000 12,285
Tenet Healthcare Corp. <F2> <F3> 100,000 3,744
16,029
Hotels & Motels (0.7%):
Mirage Resorts, Inc. <F2> <F3> 310,000 6,839
Insurance--Multi-Line (4.0%):
American International Group, Inc. 118,025 15,528
General Reinsurance Corp. 30,500 6,819
Marsh & McLennan Cos., Inc. 160,000 14,580
Partner Reinsurance Ltd. 100,500 5,031
41,958
Insurance--Property, Casualty,
Health (0.9%):
Everest Reinsurance Holdings, Inc. 228,500 9,426
Investment Company (0.6%):
Noel Group, Inc. <F2> 225,000 464
Tele-communications TCI Ventures
Group, Class A <F2> <F3> 374,710 6,113
6,577
Machine Tools (0.6%):
Kennametal, Inc. <F3> 120,000 6,398
Machine--Diversfied (0.7%):
Thermo Electron <F2> <F3> 188,300 7,497
Manufacturing--Miscellaneous
(0.6%):
Millipore Corp. <F3> 185,000 6,383
Media (2.6%):
News Corp. ADR <F3> 410,000 11,198
Time Warner, Inc. <F3> 205,000 16,093
27,291
Medical Supplies (0.7%):
Biomet, Inc. 253,400 7,602
Oil & Gas Exploration,
Production & Services (3.1%):
Anadarko Petroleum Corp. <F3> 40,000 2,930
Enron Corp. 410,700 20,201
Forcenergy, Inc. <F2> <F3> 264,700 6,105
Noble Affiliates, Inc. 69,200 2,984
32,220
Oil-Integrated Companies (3.8%):
Atlantic Richfield Co. 20,800 1,622
Exxon Corp. <F3> 45,000 3,282
Phillips Petroleum Co. 124,500 6,171
Texaco, Inc. 181,000 11,132
Unocal Corp. <F3> 420,000 17,193
39,400
Oilfield Services & Equipment (3.3%):
Baker Hughes, Inc. 320,000 12,960
Dresser Industries, Inc. 155,600 8,227
Schlumberger, Ltd. <F3> 165,000 13,675
34,862
Pharmaceuticals (7.0%):
American Home Products Corp. 273,000 25,423
Merck & Co., Inc. 75,000 9,038
Pfizer, Inc. 300,000 34,143
SmithKline Beecham PLC ADR <F3> 60,000 3,574
72,178
Pollution Control Services
& Equipment (1.5%):
Waste Management, Inc. 460,000 15,410
Publishing (0.7%):
Dow Jones & Co., Inc. 160,000 7,790
Radio & Television (2.3%):
Tele-Communications, Inc.,
Class A <F2> <F3> 565,645 18,241
U.S. West Media Group <F2> <F3> 130,000 4,908
Viacom, Inc., Class B <F2> 21,700 1,259
24,408
Real Estate (0.3%):
Cousins Properties, Inc. 100,000 3,025
Real Estate Investment
Trusts (0.3%):
Security Capital Industrial Trust 108,333 2,647
Retail (5.0%):
AutoZone, Inc. <F2> 270,000 8,151
J.C. Penney Co., Inc. 165,000 11,724
Nordstrom, Inc. <F3> 105,000 6,871
OfficeMax, Inc. <F2> 375,000 7,055
Wal-Mart Stores, Inc. 230,000 11,629
Walgreen Co. <F3> 185,000 6,383
51,813
Semiconductors (5.8%):
Applied Materials, Inc. <F2> <F3> 390,000 14,089
Intel Corp. 290,000 23,435
LSI Logic Corp. <F2> 448,000 12,152
Texas Instruments, Inc. <F3> 170,000 10,891
60,567
Software & Computer
Services (2.3%):
America Online, Inc. <F2> <F3> 180,000 14,400
Oracle Systems Corp. <F2> <F3> 375,000 9,703
24,103
Steel (0.2%):
J&L Speciality Steel, Inc. 235,000 1,909
Tobacco & Tobacco Products (1.9%):
Philip Morris Cos., Inc. 365,000 13,619
UST, Inc. 232,000 6,395
20,014
Utilities--Electric (1.5%):
CINergy Corp. 226,700 7,906
Southern Co. <F3> 304,300 8,064
15,970
Utilities--Telecommunications
(5.2%):
AirTouch Communications, Inc. <F2> 120,000 6,375
Ameritech Corp. 232,200 9,883
GTE Corp. 323,500 18,905
MCI Telecommunications Corp. 390,000 19,621
54,784
Total Common Stocks (Cost $753,481) 1,010,107
Short Term Securities Held
As Collateral (17.5%)
General American
Funding Agreement,
5.89%<F4>, 5/1/98 35,000 35,000
AIM Short Term Prime Obligations
Money Market Fund 4,665,225 4,665
AIM Liquid Assets
Money Market Fund 2,761,117 2,761
Bache Corp., Repurchase
Agreement (Collateralized by
$36,811 various U.S. Securities
and Corporate Bonds,
5.88%-9.25%, 6/19/98-4/1/29,
market value--$35,814) 35,000 35,000
Golman, Repurchase Agreement
(Collateralized by $41,115
various Corporate Bonds,
5.55%-8.30%, 6/15/01-9/3/49,
market value--$42,108) 40,000 40,000
Lehman Brothers Inc.,
Repurchase Agreement
(Collateralized by $21,340
various U.S. Government
Agency Securities,
6.05%-6.10%, 5/25/21-6/15/23,
market value--$20,400) 20,000 20,000
Morgan Stanley Corp.,
Repurchase Agreement
(Collateralized by $31,430
various Corporate Bonds,
0.00%-6.88%, 3/1/00-2/15/46,
market value--$31,377) 30,000 30,000
Salomon Corp.,
Repurchase Agreement
(Collateralized by $15,278
various Corporate Bonds,
0.00% 8/15/02-2/1/07, market
value--$15,454) 15,000 15,000
Total Short Term Securities Held
As Collateral (Cost $182,426) 182,426
Total Investments (Cost $962,337) <F1>--116.8% 1,218,963
Other assets in excess of liabilities (16.8%) (175,014)
TOTAL NET ASSETS--100.0% $1,043,949
<FN>
<F1> Cost for federal income tax purposes differs from value by net unrealized appreciation of securities
as follows (amounts in thousands):
Unrealized appreciation $277,598
Unrealized depreciation (20,972)
Net unrealized appreciation $256,626
<F2> Non-income producing securities.
<F3> All or a portion of this security was loaned as of April 30, 1998.
<F4> 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 April 30, 1998.
ADR--American Depository Receipts
</FN>
See notes to financial statements.
</TABLE>
<TABLE>
THE VICTORY PORTFOLIOS Schedule of Investments
Stock Index Fund April 30, 1998
(Amounts in Thousands, Except Shares) (Unaudited)
<CAPTION>
Shares or
Principal Market
Security Description Amount Value
<S> <C> <C>
Preferred Stocks (0.0%)
Containers (0.0%):
Sealed Air Corp. <F2> 2,206 $ 136
Total Preferred Stocks (Cost $81) 136
Common Stocks (69.4%)
Advertising (0.1%):
Interpublic Group of Cos., Inc. 6,486 414
Omnicom 8,497 403
817
Aerospace/Defense (1.2%):
AlliedSignal, Inc. 29,299 1,284
B.F. Goodrich Co. 3,731 201
Boeing Co. 51,871 2,595
General Dynamics Corp. 6,604 279
Lockheed Martin Corp. 10,110 1,126
Northrop Grumman Corp. 3,566 377
Raytheon Co--Class A 2,837 157
Raytheon Co--Class B 11,405 647
United Technologies Corp. 12,238 1,205
7,871
Agriculture (0.1%):
Agribrand International, Inc. 666 25
Pioneer Hi-Bred International, Inc. 10,200 385
410
Airlines (0.3%):
AMR Corp. Delaware <F2> 4,738 722
Delta Air Lines, Inc. 3,891 452
Southwest Airlines Co. 11,375 312
U.S. Airways Group, Inc. <F2> 4,795 341
1,827
Aluminum (0.2%):
Alcan Aluminum Ltd. 11,877 386
Aluminum Co. of America 8,959 694
Reynolds Metal Co. 3,903 258
1,338
Apparel (0.0%):
Reebok Internnational Ltd. <F2> 3,015 88
Russell Corp. 1,878 51
139
Apparel--Footwear (0.2%):
Fruit of the Loom, Inc.,
Class A <F2> 3,878 145
Liz Claiborne, Inc. 3,571 176
Nike, Inc., Class B 14,942 713
VF Corp. 6,324 329
1,363
Automobiles (1.1%):
Chrysler Corp. 33,636 1,352
Ford Motor Co. 62,272 2,854
General Motors Corp. 36,831 2,481
Navistar International Corp. <F2> 3,796 113
PACCAR, Inc. 4,060 241
7,041
Automotive Parts (0.2%):
Cummins Engine Co., Inc. 1,989 108
Dana Corp. 5,423 321
Echlin, Inc. 3,335 158
Genuine Parts Co. 9,345 336
ITT Industries, Inc. 6,099 222
TRW, Inc. 6,402 338
1,483
Banks (5.1%):
Banc One Corp. 33,482 1,969
Bank of New York Co. 19,603 1,158
BankAmerica Corp. 36,070 3,066
Bankers Trust New York Corp. 5,107 659
BB & T Corp. 7,358 495
Chase Manhattan Corp. 21,997 3,048
Comerica, Inc. 8,285 555
First Chicago NBD Corp. 15,053 1,398
First Union Corp. 50,159 3,028
Huntington Bancshares, Inc. 9,929 353
J.P. Morgan & Co., Inc. 9,269 1,217
KeyCorp 22,812 905
MBNA Corp. 26,001 881
Mellon Bank Corp. 13,284 956
Mercantile Bancorporation, Inc. 6,886 381
National City Corp. 9,833 681
NationsBank Corp. 48,751 3,692
Norwest Corp. 39,326 1,561
PNC Bank Corp. 15,932 963
Republic New York Corp. 2,920 391
SunTrust Banks, Inc. 10,957 892
Synovus Financial Corp. 9,122 321
U.S. Bancorp 12,785 1,624
Wachovia Corp. 10,736 912
Wells Fargo & Co. 4,586 1,690
32,796
Banks--Money Centers
Regional (1.1%):
BankBoston Corp. 7,598 820
Citicorp 23,705 3,568
Fleet Financial Group, Inc. 14,148 1,222
Northern Trust Corp. 5,849 427
State Street Corp. 8,430 603
Summit Bancorp 9,202 461
7,101
Banks--Outside Money
Center (0.2%):
Fifth Third Bancorp 12,139 667
Providian Financial Corp. 4,863 293
960
Beverages (2.3%):
Anheuser-Busch Co., Inc. 25,571 1,171
Brown-Forman Corp., Class B 3,709 210
Coca-Cola Co. 128,315 9,735
Coors (Adolph) Co. 1,917 69
PepsiCo, Inc. 78,759 3,126
Seagram Co. Ltd. 18,641 796
15,107
Broadcasting/Cable (0.1%):
Tele-Communications, Inc.,
Class A <F2> 26,344 850
Brokerage Services (0.7%):
Merrill Lynch & Co., Inc. 17,305 1,519
Morgan Stanley, Dean Witter & Co. 30,863 2,434
Schwab (Charles) Corp. 13,728 480
4,433
Building Materials (0.2%):
Armstrong World Industries, Inc. 2,146 184
Centex Corp. 3,136 109
Fleetwood Enterprises, Inc. 1,832 85
Kaufman & Broad Home Corp. 2,027 59
Masco Corp. 8,704 504
Owens Corning 2,831 118
Pulte Corp. 1,113 57
1,116
Chemicals--General (1.7%):
Air Products & Chemicals, Inc. 6,147 534
Dow Chemical Co. 11,833 1,144
E.I. Du Pont de Nemours Co. 58,737 4,277
Eastman Chemical Co. 4,096 282
Englehard Corp. 7,514 159
FMC Corp. <F2> 1,924 149
Great Lakes Chemical Corp. 3,238 163
Hercules, Inc. 5,028 240
Mallinckrodt, Inc. 3,882 125
Monsanto Co. 30,898 1,634
Nalco Chemical Co. 3,573 142
PPG Industries, Inc. 9,292 657
Praxair, Inc. 8,267 416
Rohm & Haas Co. 3,249 350
Sigma-Aldrich Corp. 5,261 210
Union Carbide Corp. 6,354 308
W.R. Grace & Co. <F2> 4,145 84
10,874
Chemicals--Specialty (0.0%):
Morton International, Inc. 6,809 218
Commercial Services (0.4%):
Automatic Data Processing, Inc. 15,487 1,037
Cendant Corp. <F2> 42,101 1,052
Ecolab, Inc. 6,794 215
Sodexho Marriott Services 1,985 51
2,355
Computers & Peripherals (3.7%):
3Com Corp. <F2> 18,527 635
Apple Computer, Inc. <F2> 6,948 190
Bay Networks, Inc. <F2> 11,404 267
Cabletron Systems, Inc. <F2> 8,248 109
Cisco Systems, Inc. <F2> 52,892 3,874
Compaq Computer Corp. 78,543 2,204
Computer Sciences Corp. <F2> 8,032 424
Data General Corp. <F2> 2,488 38
Dell Computer, Inc. <F2> 33,938 2,740
Digital Equipment Corp. <F2> 7,623 424
EMC Corp. <F2> 25,842 1,192
Gateway 2000, Inc. <F2> 8,094 475
Hewlett-Packard Co. 54,066 4,072
International Business
Machines Corp. 50,459 5,847
Seagate Technology, Inc. <F2> 12,575 336
Silicon Graphics, Inc. <F2> 9,782 128
Sun Microsystems, Inc. <F2> 19,573 806
Unisys Corp. <F2> 13,026 292
24,053
Conglomerates (0.6%):
Corning, Inc. 12,112 484
Crane Co. 2,469 133
Minnesota Mining
& Manufacturing Co. 21,299 2,011
National Service Industries, Inc. 2,296 124
Tenneco, Inc. 8,835 380
Textron, Inc. 8,604 673
3,805
Construction (0.0%):
Fluor Corp. 4,441 210
Foster Wheeler Corp. 2,138 59
269
Consumer Products (1.3%):
American Greetings Corp.,
Class A 3,793 175
Clorox Co. 5,355 449
Colgate-Palmolive Co. 15,386 1,380
Fortune Brands, Inc. 8,904 328
Jostens, Inc. 2,033 48
Procter & Gamble Co. 69,658 5,726
Rubbermaid, Inc. 7,864 225
8,331
Containers (0.2%):
Ball Corp. 1,585 61
Bemis, Inc. 2,811 125
Crown Cork & Seal, Inc. 6,715 350
Newell Co. 8,337 403
Owens-Illinois, Inc. <F2> 7,465 295
Sealed Air Corp. <F2> 1,990 125
Stone Container Corp. <F2> 5,204 85
Tupperware Corp. 3,226 87
1,531
Cosmetics & Related (0.7%):
Alberto Culver Co. 3,005 88
Avon Products, Inc. 6,967 573
Gillette Co. 29,066 3,355
International Flavor & Fragance, Inc. 5,726 280
4,296
Diversified (0.2%):
Tyco International Ltd. 29,783 1,623
Electrical Equipment (2.5%):
Emerson Electric Co. 23,001 1,463
General Electric Co. 169,901 14,463
Johnson Controls, Inc. 4,431 263
Thomas & Betts Corp. 2,930 171
16,360
Electronic & Electrical--
General (1.0%):
Advanced Micro Devices, Inc. <F2> 7,503 208
AMP, Inc. 11,417 449
Andrew Corp. <F2> 4,637 106
EG&G, Inc. 2,458 74
General Signal Corp. 2,646 116
Harris Corp. 4,178 202
Honeywell, Inc. 6,662 620
KLA-Tencor Corp. <F2> 4,429 179
Millipore Corp. 2,323 80
Motorola, Inc. 30,987 1,725
National Semiconductor Corp. <F2> 8,585 189
Parker-Hannifin Corp. 5,776 258
Rockwell International Corp. 10,445 584
Tandy Corp. 5,351 266
Tektronix, Inc. 2,630 113
Texas Instruments, Inc. 20,248 1,297
6,466
Entertainment (0.9%):
Brunswick Corp. 5,204 169
Harrah's Entertainment, Inc. <F2> 5,306 138
Hasbro, Inc. 6,531 240
King World Productions, Inc. <F2> 3,897 104
Loews Corp. 5,982 599
The Walt Disney Co. 35,070 4,360
5,610
Financial & Insurance (0.1%):
MBIA, Inc. 5,086 380
Financial Services (2.7%):
American Express Co. 24,201 2,469
Associates First Capital Corp. 16,086 1,202
Beneficial Corp. 2,824 368
Countrywide Credit
Industries, Inc. 5,593 271
Equifax, Inc. 7,824 303
Federal Home Loan
Mortgage Corp. 36,111 1,672
Federal National Mortgage Assoc. 55,066 3,297
First Data Corp. 22,310 756
Franklin Resources, Inc. 2,448 131
Golden West Financial
Corp., Delaware 3,046 321
Green Tree Financial Corp. 7,183 293
H.F. Ahmanson & Co. 5,665 432
Household International, Inc. 5,569 732
Lehman Brothers Holding, Inc. 5,246 373
TransAmerica Corp. 3,355 388
Travelers Group, Inc. 59,469 3,637
Washington Mutual, Inc. 13,455 943
17,588
Food Distributors (0.4%):
Albertsons, Inc. 12,850 644
American Stores Co. 14,209 341
Giant Food, Inc., Class A 3,248 121
Great Atlantic & Pacific Tea, Inc. 1,989 62
Kroger Co. <F2> 13,285 556
SUPERVALU, Inc. 3,282 143
Sysco Corp. 17,644 420
Winn-Dixie Stores, Inc. 7,798 293
2,580
Food Processing & Packaging (1.4%):
Archer-Daniels-Midland Co. 29,688 638
Bestfoods 14,936 820
Campbell Soup Co. 23,648 1,213
ConAgra, Inc. 24,633 719
General Mills, Inc. 8,274 559
H.J. Heinz Co. 19,012 1,036
Hershey Foods Corp. 7,426 544
Kellogg Co. 21,439 884
Quaker Oats Co. 7,285 379
Ralston-Ralston Purina Group 5,556 589
Sara Lee Corp. 24,602 1,466
Vlasic Foods International <F2> 2,845 66
Wm. Wrigley Jr. Co. 6,058 539
9,452
Forest Products--
Lumber & Paper (0.8%):
Boise Cascade Corp. 2,974 112
Champion International Corp. 4,990 269
Fort James Corp. 10,927 542
Georgia Pacific Corp. 4,816 372
International Paper Co. 15,789 824
Kimberly-Clark Corp. 28,868 1,466
Louisiana Pacific Corp. 5,726 125
Mead Corp. 5,438 188
Potlatch Corp. 1,507 71
Temple-Inland, Inc. 3,056 197
Union Camp Corp. 3,733 225
Westvaco Corp. 5,269 160
Weyerhauser Co. 10,350 596
Willamette Industries, Inc. 5,836 227
5,374
Funeral Services (0.1%):
Service Corp. International 13,111 541
Health Care (0.2%):
Columbia/HCA Healthcare Corp. 33,605 1,107
Humana, Inc. <F2> 8,618 233
1,340
Heavy Machinery (0.4%):
Case Corp. 3,857 245
Caterpillar Tractor, Inc. 19,330 1,101
Deere & Co. 13,048 762
Harnischfeger Industries, Inc. 2,485 70
Ingersoll Rand Co. 8,761 404
McDermott International, Inc. 2,966 123
2,705
Hotels & Motels (0.2%):
Hilton Hotels Corp. 13,016 416
Marriott International, Class-A 7,941 254
Marriott International, Inc. 5,341 176
Mirage Resorts, Inc. <F2> 9,369 207
1,053
Household Goods--Appliances,
Furnishings & Electronics (0.1%):
Maytag Corp. 4,927 254
Whirlpool Corp. 3,857 277
531
Industrial Goods & Services (0.1%):
Aeroquip-Vickers, Inc. 1,454 92
Dover Corp. 11,591 458
W.W. Grainger, Inc. 2,607 284
834
Insurance (0.1%):
Cincinnati Financial Corp. 2,924 372
Progressive Corp. 3,804 516
888
Insurance--Life (0.0%):
Jefferson Pilot Corp. 5,483 322
Insurance--Multi-Line (2.1%):
Aetna, Inc. 7,753 627
Allstate Corp. 22,356 2,152
American International Group, Inc. 36,398 4,788
Aon Corp. 8,740 564
CIGNA Corp. 3,922 812
Conseco, Inc. 9,836 488
General Reinsurance Corp. 4,067 909
Hartford Financial Services Group, Inc. 6,169 683
Lincoln National Corp. 5,270 468
Marsh & McLennan Cos., Inc. 8,725 795
MGIC Investment Corp. 6,029 380
Safeco Corp. 7,534 376
SunAmerica, Inc. 10,183 509
Torchmark Corp. 7,349 327
13,878
Insurance--Property, Casualty,
Health (0.4%):
American General Corp. 13,199 880
Chubb Corp. 8,818 696
St. Paul Cos., Inc. 5,985 507
UNUM Corp. 7,314 393
2,476
Machine Tools (0.0%):
Cincinnati Milacron, Inc. 2,090 65
Manufacturing--Capital Goods
(0.2%):
Cooper Industries, Inc. 6,223 416
Illinois Tool Works, Inc. 13,075 922
1,338
Manufacturing--Consumer
Goods (0.1%):
Eaton Corp. 4,028 372
Mattel, Inc. 15,043 576
948
Manufacturing--Miscellaneous
(0.7%):
Briggs & Stratton Corp. 1,282 58
CBS Corporation 36,919 1,315
NACCO Industries, Inc. 415 70
Pall Corp. 6,430 126
Thermo Electron Corp. <F2> 7,891 314
Unilever N.V. 33,281 2,484
Western Atlas, Inc. <F2> 2,872 227
4,594
Medical Services (0.3%):
HEALTHSOUTH Corp. <F2> 20,461 618
Manor Care, Inc. 3,375 118
Tenet Healthcare Corp. <F2> 15,944 597
United Healthcare Corp. 9,815 689
2,022
Medical Supplies (0.7%):
Alza Corp., Class A <F2> 4,511 216
Bausch & Lomb, Inc. 2,962 146
Baxter International, Inc. 14,557 807
Becton Dickinson & Co. 6,330 441
Biomet, Inc. 5,848 175
Boston Scientific Corp. <F2> 10,126 732
C.R. Bard, Inc. 3,079 110
Guidant Corp. 7,858 526
Medtronic, Inc. 24,311 1,280
St. Jude Medical, Inc. <F2> 4,931 175
United States Surgical Corp. 3,922 124
4,732
Medical--Wholesale Drug
Distribution (0.1%):
Cardinal Health, Inc. 5,680 547
Metals--Fabrication (0.1%):
Phelps Dodge Corp. 3,165 212
Timken Co. 3,318 133
345
Mining (0.0%):
Asarco, Inc. 2,119 53
Cyprus Amax Minerals Co. 4,939 85
Inco Ltd. 8,726 153
291
Newspapers (0.4%):
Dow Jones & Co., Inc. 4,993 243
Gannett Co., Inc. 14,801 1,005
Knight-Ridder, Inc. 4,471 261
New York Times Co., Class A 4,987 354
Times Mirror Co., Class A 4,571 280
Tribune Co. 6,366 420
2,563
Office Equipment & Supplies
(Non-Computer Related) (0.5%):
Avery Dennison Corp. 5,340 280
Deluxe Corp. 4,246 142
IKON Office Solutions, Inc. 6,996 169
Moore Corp. Ltd. 4,618 72
Pitney Bowes, Inc. 15,034 722
Xerox Corp. 17,010 1,931
3,316
Oil & Gas Exploration,
Production & Services (0.8%):
Amerada Hess Corp. 4,834 278
Anadarko Petroleum Corp. 3,227 236
Apache Corp. 4,948 175
Ashland, Inc. 3,857 204
Burlington Resource, Inc. 9,210 433
Coastal Corp. 5,520 394
Columbia Gas System, Inc. 2,959 240
Helmerich & Payne, Inc. 2,625 80
Kerr-McGee Corp. 2,479 164
Occidental Petroleum Corp. 17,636 519
Oneok, Inc. 1,634 66
Oryx Energy Co. <F2> 5,484 143
Pennzoil Co. 2,445 157
Rowan Cos., Inc. <F2> 4,602 135
Sun Co., Inc. 3,734 151
Union Pacific Resources Group, Inc. 13,249 316
Unocal Corp. 12,829 525
USX--Marathon Group 14,989 539
Williams Cos., Inc. 15,666 495
5,250
Oil-Integrated Companies (4.3%):
Amoco Corp. 50,666 2,242
Atlantic Richfield Co. 16,740 1,306
Chevron Corp. 34,100 2,820
Exxon Corp. 127,859 9,325
Mobil Corp. 40,743 3,219
Phillips Petroleum Co. 13,653 677
Royal Dutch Petroleum Co.,
New York Shares 111,293 6,295
Texaco, Inc. 28,493 1,752
27,636
Oilfield Services & Equipment (0.6%):
Baker Hughes, Inc. 8,739 354
Dresser Industries, Inc. 9,140 483
Halliburton Co. 13,644 750
Schlumberger Ltd. 25,922 2,149
3,736
Paint, Varnishes, Enamels (0.0%):
Sherwin-Williams Co. 8,983 320
Pharmaceuticals (6.8%):
Abbott Laboratories 39,625 2,898
Allergan, Inc. 3,453 144
American Home Products Corp. 33,713 3,140
Amgen, Inc. <F2> 13,722 818
Bristol-Myers Squibb Co. 51,538 5,457
Cognizant Corp. 8,519 438
Eli Lilly & Co. 57,616 4,008
Johnson & Johnson, Inc. 69,711 4,976
Merck & Co., Inc. 62,166 7,491
Pfizer, Inc. 67,134 7,639
Pharmacia & Upjohn, Inc. 26,312 1,107
Schering-Plough Corp. 38,056 3,049
Warner-Lambert Co. 14,150 2,677
43,842
Photography (0.2%):
Eastman Kodak Co. 16,944 1,224
Polaroid Corp. 2,443 107
1,331
Pollution Control Services
& Equipment (0.2%):
Browning-Ferris Industries, Inc. 10,103 345
Safety-Kleen Corp. 3,641 106
Waste Management, Inc. 23,525 788
1,239
Precision Instruments & Related
(0.0%):
Perkin-Elmer Corp. 2,543 174
Primary Metal & Mineral
Production (0.2%):
Barrick Gold Corp. 19,379 434
Battle Mountain Gold Co. 12,047 87
Freeport-McMoRan
Copper & Gold, Inc., Class B 10,068 189
Homestake Mining Co. 9,691 113
Inland Steel Industries, Inc. 2,549 75
Newmont Mining Corp. 8,160 263
Placer Dome, Inc. 12,460 184
1,345
Publishing (0.5%):
Dun & Bradstreet Corp. 8,849 314
John H. Harland Co. 1,938 35
McGraw-Hill Cos., Inc. 5,183 401
Meredith Corp. 2,843 122
R.R. Donnelley & Sons Co. 7,636 336
Time Warner, Inc. 30,067 2,361
3,569
Radio & Television (0.5%):
Clear Channel
Communications, Inc. <F2> 4,923 464
Comcast Corp.,
Class A Special Shares 18,187 651
U.S. West Media Group <F2> 31,578 1,193
Viacom, Inc., Class B <F2> 18,439 1,069
3,377
Railroads (0.4%):
Burlington Northern Santa Fe 8,117 803
CSX Corp. 11,306 594
Norfolk Southern Corp. 19,647 657
Union Pacific Corp. 12,931 708
2,762
Restaurants (0.4%):
Darden Restaurants, Inc. 7,756 124
McDonald's Corp. 35,873 2,220
Tricon Global Restaurants <F2> 7,952 252
Wendy's International, Inc. 6,924 167
2,763
Retail (1.2%):
Costco Cos., Inc. <F2> 10,976 613
Dayton Hudson Corp. 11,297 986
K-Mart Corp. <F2> 25,411 443
Wal-Mart Stores, Inc. 116,604 5,896
Woolworth Corp. <F2> 7,114 164
8,102
Retail--Department Stores (0.7%):
Consolidated Stores Corp. <F2> 5,657 226
Dillard's, Inc., Class A 5,873 215
Federated Department
Stores, Inc. <F2> 10,863 534
Harcourt General, Inc. 3,719 194
J.C. Penney Co., Inc. 12,948 920
May Department Stores Co. 12,119 748
Mercantile Stores Co., Inc. 1,896 139
Nordstrom, Inc. 4,024 263
Sears, Roebuck & Co. 20,359 1,208
4,447
Retail--Drug Stores (0.3%):
CVS Corp. 8,742 645
Longs Drug Stores Corp. 2,043 59
Rite Aid Corp. 13,478 433
Walgreen Co. 25,642 884
2,021
Retail--Specialty Stores (0.9%):
AutoZone, Inc. <F2> 7,931 239
Circuit City Stores, Inc. 5,144 209
Gap, Inc. 20,522 1,056
Home Depot, Inc. 38,002 2,647
Limited, Inc. 14,158 475
Lowe's Cos., Inc. 9,055 633
Pep Boys--Manny, Moe & Jack 3,348 73
TJX Cos., Inc. 8,497 376
Toys "R" Us, Inc. <F2> 14,819 408
6,116
Rubber & Rubber Products (0.1%):
Cooper Tire & Rubber Co. 4,118 98
Goodyear Tire & Rubber Co. 8,142 570
668
Semiconductors (1.2%):
Applied Materials, Inc. <F2> 18,967 685
Intel Corp. 85,001 6,869
LSI Logic Corp. <F2> 7,563 205
Micron Technology, Inc. <F2> 10,962 341
8,100
Software & Computer
Services (2.5%):
Adobe Systems, Inc. 3,652 183
Autodesk, Inc. 2,396 113
Ceridian Corp. <F2> 4,066 230
Computer Associates
International, Inc. 28,398 1,663
HBO & Co. 10,916 653
Microsoft Corp. <F2> 126,479 11,398
Novell, Inc. <F2> 18,161 182
Oracle Corp. <F2> 50,903 1,317
Parametric Technology Corp. <F2> 13,314 426
Shared Medical Systems Corp. 1,260 92
16,257
Steel (0.1%):
Allegheny Teledyne, Inc. 8,775 223
Armco, Inc. <F2> 5,588 38
Bethlehem Steel Corp. <F2> 5,932 92
Nucor Corp. 4,589 275
USX--U.S. Steel Group, Inc. 4,555 178
Worthington Industries, Inc. 5,041 91
897
Tax Return Preparation (0.0%):
H&R Block, Inc. 5,402 243
Telecommunications (0.4%):
DSC Communications Corp. <F2> 6,134 110
Frontier Corp. 8,651 259
Nextel Communications <F2> 12,439 357
Northern Telecom Ltd. 27,051 1,647
Scientific-Atlanta, Inc. 4,051 97
2,470
Telecommunications--Equipment
(0.9%):
General Instrument Corp. <F2> 7,701 173
Lucent Technologies, Inc. 67,664 5,150
Tellabs, Inc. <F2> 9,504 674
5,997
Textile Manufacturing (0.0%):
Springs Industries, Inc., Class A 1,165 64
Tobacco & Tobacco Products
(0.8%):
Philip Morris Cos., Inc. 125,833 4,695
UST, Inc. 9,580 264
4,959
Tools & Hardware Manufacturing
(0.1%):
Black & Decker Corp. 4,897 253
Snap-on, Inc. 3,218 136
Stanley Works 4,660 239
628
Transportation (0.1%):
FDX Corp. <F2> 7,618 518
Transportation Leasing
& Trucking (0.0%):
Ryder Systems, Inc. 3,949 137
Transportation Services (0.0%):
Laidlaw, Inc. 17,228 240
Utilities--Electric (1.6%):
Ameren Corporation 7,229 286
American Electric Power Co. 9,915 473
Carolina Power & Light Co. 7,851 338
Central & South West Corp. 11,055 288
CINergy Corp. 8,247 288
Consolidated Edison Co.
of New York, Inc. 12,379 560
Detroit Edison Co. 7,563 296
Dominion Resources, Inc. 10,105 400
Duke Energy Corp. 18,677 1,081
Edison International 19,801 590
Entergy Corp 12,718 316
FirstEnergy Corp. 12,070 365
FPL Group, Inc. 9,573 594
Houston Industries, Inc. 14,719 428
Niagara Mohawk Power Corp. <F2> 7,520 92
Northern States Power Co. 3,809 215
PacifiCorp 15,396 358
Peco Energy Co. 11,597 276
PG&E Corp. 22,786 738
PP&L Resources, Inc. 8,701 201
Public Service Enterprise Group 12,188 409
Raychem Corp. 4,448 179
Southern Co. 35,958 953
Texas Utilities Co. 12,876 515
Unicom Corp. 11,210 390
10,629
Utilities--Electric & Gas (0.1%):
Baltimore Gas & Electric Co. 7,721 243
GPU, Inc. 6,650 264
507
Utilities--Gas (0.3%):
Consolidated Natural Gas Co. 4,956 285
Eastern Enterprises 1,076 46
Enron Corp. 16,239 799
NICOR, Inc. 2,536 104
Pacific Enterprises 4,404 171
Peoples Energy Corp. 1,795 65
Sonat, Inc. 5,792 257
1,727
Utilities--Telecommunications
(4.7%):
AirTouch Communications, Inc. <F2> 25,764 1,369
ALLTEL Corp. 9,568 409
Ameritech Corp. 56,792 2,417
AT&T Corp. 84,346 5,066
Bell Atlantic Corp. 40,387 3,779
BellSouth Corp. 51,520 3,307
GTE Corp. 49,727 2,906
MCI Telecommunications Corp. 36,156 1,819
SBC Communications, Inc. 95,080 3,940
Sprint Corp. 22,281 1,522
U.S. West Communications Group 25,144 1,326
WorldCom, Inc. <F2> 52,661 2,253
30,113
Total Common Stocks (Cost $291,186) 453,330
Commercial Paper (20.9%)
Financial Services (20.9%):
Associates Corp., N.A.,
5.56%, 5/1/98 136,105 136,105
Total Commercial Paper (Cost $136,105) 136,105
U.S. Treasury Bills (0.8%)
5.04%, 6/18/98 <F3> 5,300 5,265
Total U.S. Treasury Bills (Cost $5,265) 5,265
Total Investments (Cost $432,637) <F1>--91.1% 594,836
Other assets in excess of liabilities 8.9% 57,570
TOTAL NET ASSETS--100.0% $652,406
<FN>
<F1> Cost for federal income tax purposes differs from value by net unrealized appreciation of securities
as follows (amounts in thousands):
Unrealized appreciation $169,154
Unrealized depreciation (4,650)
Net unrealized appreciation $164,504
<F2> Non-income producing securities.
<F3> Serves as collateral for futures contracts.
</FN>
</TABLE>
<TABLE>
<CAPTION>
Number
of Market
Security Description Contracts Value
<S> <C> <C>
Futures Contracts (18.6%)
S&P 500 Index,
face amount $118,848,
expiring June 19, 1998 433 $121,153
Total Futures Contract (Cost $118,848) 121,153
See notes to financial statements.
</TABLE>
<TABLE>
THE VICTORY PORTFOLIOS Schedule of Investments
Growth Fund April 30, 1998
(Amounts in Thousands, Except Shares) (Unaudited)
<CAPTION>
Shares or
Principal Market
Security Description Amount Value
<S> <C> <C>
Commercial Paper (1.5%)
Financial Services (1.5%):
Associates Corp., N.A., 5.56%, 5/1/98 3,467 $ 3,467
Total Commercial Paper (Cost $3,467) 3,467
Common Stocks (98.5%)
Aerospace/Defense (2.2%):
AlliedSignal, Inc. 75,000 3,286
United Technologies Corp. 18,000 1,772
5,058
Airlines (0.7%):
Southwest Airlines Co. 62,500 1,715
Banks (5.7%):
BankAmerica Corp. 35,000 2,975
First Union Corp. 50,000 3,019
U.S. Bancorp 20,000 2,540
Wells Fargo & Co. 12,500 4,606
13,140
Beverages (4.2%):
Anheuser-Busch Co., Inc. 32,000 1,466
Coca-Cola Co. 67,000 5,084
PepsiCo, Inc. 80,000 3,175
9,725
Chemicals--General (1.5%):
Air Products & Chemicals, Inc. 30,000 2,608
RPM, Inc. 50,000 863
3,471
Commercial Services (1.6%):
Automatic Data Processing, Inc. 55,000 3,682
Computers & Peripherals (6.5%):
3Com Corp. <F2> 40,000 1,370
Cisco Systems, Inc. <F2> 70,000 5,127
Compaq Computer Corp. 62,000 1,740
Dell Computer, Inc. <F2> 5,000 404
Hewlett-Packard Co. 27,500 2,071
International Business
Machines Corp. 25,600 2,966
Sun Microsystems, Inc. <F2> 35,000 1,442
15,120
Conglomerates (0.5%):
Textron, Inc. 15,000 1,174
Consumer Products (3.5%):
Colgate-Palmolive Co. 40,000 3,588
Procter & Gamble Co. 54,000 4,438
8,026
Containers (2.0%):
Newell Co. 60,000 2,899
Sonoco Products Co. 45,000 1,808
4,707
Cosmetics & Related (1.5%):
Avon Products, Inc. 25,000 2,054
Gillette Co. 13,000 1,501
3,555
Electrical Equipment (6.5%):
Emerson Electric Co. 80,000 5,090
General Electric Co. 117,500 10,002
15,092
Electronic & Electrical--
General (0.4%):
Millipore Corp. 27,500 949
Entertainment (0.7%):
The Walt Disney Co. 13,000 1,616
Financial Services (3.4%):
Federal National Mortgage Assoc. 65,000 3,891
First Data Corp. 60,000 2,033
Franklin Resources, Inc. 35,000 1,873
7,797
Food Processing & Packaging (4.3%):
Bestfoods 45,000 2,469
ConAgra, Inc. 100,000 2,919
General Mills, Inc. 30,000 2,027
Sara Lee Corp. 42,500 2,531
9,946
Forest Products--
Lumber & Paper (0.6%):
Mead Corp. 40,000 1,385
Health Care (0.9%):
Columbia/HCA Healthcare Corp. 25,000 823
Health Management Assoc., Inc.,
Class A <F2> 40,000 1,260
2,083
Industrial Goods & Services (0.5%):
W.W. Grainger, Inc. 11,000 1,198
Insurance--Multi-Line (3.7%):
American International Group, Inc. 45,000 5,920
Everest Reinsurance Holdings, Inc. 30,000 1,238
General Reinsurance Corp. 6,000 1,341
8,499
Medical Supplies (1.3%):
Biomet, Inc. 32,500 975
Medtronic, Inc. 40,000 2,105
3,080
Newspapers (0.5%):
Gannett Co., Inc. 17,500 1,189
Oil & Gas Exploration,
Production & Services (0.3%):
Anadarko Petroleum Corp. 11,000 806
Oil-Integrated Companies (3.0%):
Atlantic Richfield Co. 12,500 975
Chevron Corp. 27,500 2,274
Mobil Corp. 46,000 3,634
6,883
Oilfield Services & Equipment (1.6%):
Baker Hughes, Inc. 30,000 1,215
Schlumberger Ltd. 30,000 2,486
3,701
Pharmaceuticals (14.4%):
Abbott Laboratories 60,000 4,388
American Home Products Corp. 52,500 4,889
Bristol-Myers Squibb Co. 22,500 2,382
Eli Lilly & Co. 20,000 1,391
Johnson & Johnson, Inc. 50,000 3,569
Merck & Co., Inc. 35,000 4,218
Pfizer, Inc. 82,000 9,331
Schering-Plough Corp. 38,000 3,045
33,213
Publishing (0.7%):
Time Warner, Inc. 20,000 1,570
Radio & Television (1.0%):
Viacom, Inc., Class B <F2> 40,000 2,320
Retail (2.6%):
Dayton Hudson Corp. 35,000 3,056
Wal-Mart Stores, Inc. 60,000 3,034
6,090
Retail--Drug Stores (1.1%):
Walgreen Co. 72,500 2,501
Retail--Specialty Stores (3.5%):
AutoZone, Inc. <F2> 25,000 755
Home Depot, Inc. 90,000 6,266
OfficeMax, Inc. <F2> 60,000 1,129
8,150
Semiconductors (2.5%):
Applied Materials, Inc. <F2> 15,000 542
Intel Corp. 45,500 3,676
LSI Logic Corp. <F2> 60,000 1,628
5,846
Software & Computer
Services (4.1%):
Computer Associates
International, Inc. 25,000 1,464
Microsoft Corp. <F2> 68,500 6,173
Oracle Corp. <F2> 75,000 1,941
9,578
Telecommunications--
Equipment (1.5%):
Lucent Technologies, Inc. 45,000 3,426
Tobacco & Tobacco Products (1.1%):
Philip Morris Cos., Inc. 70,000 2,612
Utilities--Gas (1.1%):
Enron Corp. 50,000 2,459
Utilities--Telecommunications
(7.3%):
AirTouch Communications, Inc. <F2> 40,000 2,125
Ameritech Corp. 50,000 2,128
GTE Corp. 30,000 1,753
MCI Telecommunications Corp. 90,000 4,528
SBC Communications, Inc. 100,000 4,144
WorldCom, Inc. <F2> 45,000 1,925
16,603
Total Common Stocks (Cost $131,603) 227,965
Total Investments (Cost $135,070) <F1>--100.0% 231,432
Other assets in excess of liabilities 0.0% 47
TOTAL NET ASSETS--100.0% $231,479
<FN>
<F1> Cost for federal income tax purposes differs from value by net unrealized appreciation of securities
as follows (amounts in thousands):
Unrealized appreciation $97,933
Unrealized depreciation (1,571)
Net unrealized appreciation $96,362
<F2> Non-income producing securities.
</FN>
See notes to financial statements.
</TABLE>
<TABLE>
THE VICTORY PORTFOLIOS Schedule of Investments
Special Value Fund April 30, 1998
(Amounts in Thousands, Except Shares) (Unaudited)
<CAPTION>
Shares or
Principal Market
Security Description Amount Value
<S> <C> <C>
Commercial Paper (3.3%)
Associates Corp., N.A., 5.56%, 5/1/98 16,025 $ 16,025
Total Commercial Paper (Cost $16,025) 16,025
Common Stocks (96.6%)
Aerospace/Defense (4.1%):
B.F. Goodrich, Inc. 77,800 4,187
GenCorp, Inc. 277,470 8,445
Gulfstream Aerospace Corp. <F2> 67,899 2,848
Thiokol Corp. 72,600 3,911
19,391
Automotive Parts (2.0%):
Echlin, Inc. 95,500 4,518
Genuine Parts Co. <F3> 50,000 1,800
Superior Industries
International, Inc. 107,020 3,438
9,756
Banks (7.3%):
First Security Corp. <F3> 290,877 7,126
First Star Corp. 134,201 5,007
First Tennessee National Corp. <F3> 143,200 4,931
National City Corp. <F3> 55,080 3,814
Northern Trust Corp. 86,700 6,329
Summit Bancorp 161,800 8,113
35,320
Beverages (0.6%):
Coca-Cola Enterprises, Inc. <F3> 70,200 2,650
Brokerage Services (0.8%):
Donaldson, Lufkin & Jenrette, Inc. 40,325 3,823
Building Materials (0.8%):
Hussmann International, Inc. 220,550 3,832
Chemicals--General (2.0%):
Nalco Chemical Co. 124,100 4,933
RPM, Inc. <F3> 189,575 3,270
WD-40 Co. 53,900 1,560
9,763
Commercial Services (1.3%):
Pittston Brink's Group 155,000 6,064
Computers & Peripherals (1.2%):
Quantum Corp. <F2> <F3> 248,100 5,830
Conglomerates (1.7%):
Mark IV Industries, Inc. <F3> 191,650 4,036
Whitman Corp. <F3> 199,900 3,911
7,947
Consumer Products (0.7%):
Newell Co. 68,000 3,285
Containers--Metal, Glass, Paper,
Plastic (3.9%):
Crown Cork & Seal, Inc. <F3> 115,900 6,034
Owens-Illinois, Inc. <F2> <F3> 190,700 7,544
Sonoco Products Co. 130,800 5,257
18,835
Electronic & Electrical--
General (3.0%):
Arrow Electronics, Inc. <F2> 102,300 2,794
Harris Corp. 100,100 4,842
Vishay Intertechnology, Inc. <F2> 358,407 6,564
14,200
Entertainment (0.7%):
Brunswick Corp. <F3> 102,145 3,320
Financial Services (1.8%):
Bear Stearns Cos., Inc. 147,690 8,428
Food Distributors, Supermarkets
& Wholesalers (0.9%):
Hannaford Brothers Co. 98,000 4,355
Food Processing & Packaging (1.8%):
Dole Food Co. <F3> 89,700 4,031
McCormick & Co., Inc.
(non-voting shares) 127,900 4,380
8,411
Forest Products--
Lumber & Paper (1.7%):
Bowater, Inc. <F3> 143,800 8,044
Heavy Machinery (0.3%):
Harnischfeger Industries, Inc. <F3> 52,600 1,486
Hospital & Nursing Equipment
& Supplies (1.0%):
Hillenbrand Industries, Inc. 75,000 4,678
Hotels & Motels (0.9%):
Mirage Resorts, Inc. <F2> <F3> 184,000 4,060
Household Goods--Appliances,
Furnishings & Electronics (2.0%):
Premark International, Inc. <F3> 182,010 6,074
Sunbeam Corp., Inc. <F3> 138,500 3,480
Whirlpool Corp. 1 0
9,554
Insurance (4.2%):
American Financial Group, Inc. 105,900 4,613
Amerin Corp. <F2> 58,800 1,871
Horace Mann Educators Corp. 119,700 4,115
The PMI Group, Inc. 59,400 4,826
TIG Holdings, Inc. 98,500 2,370
Transatlantic Holdings, Inc. <F3> 31,050 2,385
20,180
Insurance--Property, Casualty,
Health (1.9%):
Everest Reinsurance Holdings, Inc. 220,700 9,104
Leisure--Recreation, Gaming
(1.4%):
International Game Technology <F3> 239,200 6,653
Machine Tools (2.8%):
Kaydon Corp. <F3> 143,800 6,300
Kennametal, Inc. 133,500 7,117
13,417
Manufacturing--Miscellaneous
(1.7%):
Briggs & Stratton Corp. 47,700 2,158
Millipore Corp. <F3> 80,000 2,760
Pentair, Inc. 72,024 3,115
8,033
Medical Services (3.5%):
Apria Healthcare Group, Inc. <F2> 261,000 2,496
Coventry Health Care, Inc. <F2> 264,200 4,475
Quorum Health Group, Inc. <F2> <F3> 300,800 9,663
16,634
Medical Supplies (1.3%):
Biomet, Inc. 212,100 6,363
Metals--Nonferrous (0.7%):
Titanium Metals Corp. <F2> <F3> 125,300 3,336
Newspapers (0.5%):
Tribune Co. 35,900 2,369
Oil & Gas Exploration,
Production & Services (5.3%):
Anadarko Petroleum Corp. 72,800 5,333
EEX Corp. <F3> 219,800 2,129
Nabors Industries, Inc. <F2> <F3> 140,100 3,529
R&B Falcon Corp. <F2> 260,851 8,363
Sante Fe International Corp. 152,000 5,957
25,311
Oil Marketing & Refining (1.6%):
Ultramar Diamond Shamrock Corp. 88,571 2,862
Valero Energy Corp. 141,500 4,581
7,443
Oilfield Services & Equipment (1.1%):
Baker Hughes, Inc. 128,500 5,204
Pharmaceuticals (2.1%):
Mylan Laboratories <F3> 362,200 9,825
Primary Metal & Mineral
Production (0.7%):
Minerals Technologies, Inc. 63,600 3,462
Real Estate (4.1%):
Meditrust Cos. <F3> 175,529 5,277
Mack-Cali Realty Corp. 177,500 6,667
Equity Residential Properties Trust 101,600 4,991
Merry Land & Investment Co., Inc. <F3> 133,600 2,814
Real Estate Investment Trusts (0.8%):
Office (0.8%):
Kilroy Realty Corp. <F3> 151,400 4,012
Retail (2.3%):
AutoZone, Inc. <F2> 86,000 2,596
OfficeMax, Inc. <F2> 433,200 8,150
10,746
Retail--Specialty Stores (3.3%):
General Nutrition Cos., Inc. <F2> 63,100 2,264
Heilig-Myers Co. <F3> 277,152 3,897
Limited, Inc. 139,200 4,672
Nine West Group, Inc. <F2> <F3> 176,100 4,898
15,731
Semiconductors (1.2%):
LSI Logic Corp. <F2> 207,900 5,639
Steel (1.6%):
Carpenter Technology, 95,300 5,533
Worthington Industries, Inc. 125,370 2,253
7,786
Tax Return Preparation (0.7%):
H&R Block, Inc. 74,000 3,330
Textile Manufacturing (2.5%):
Warnaco Group, Inc., Class A <F3> 276,700 11,691
Tobacco & Tobacco Products (0.9%):
UST, Inc. 159,900 4,407
Transportation Leasing
& Trucking (2.1%):
GATX Corp. 121,300 10,053
Transportation Services (0.7%):
Laidlaw, Inc., Class B 233,650 3,256
Utilities--Electric (6.5%):
CINergy Corp. 179,800 6,271
DPL, Inc. 157,665 2,868
DQE, Inc. 89,200 3,066
Florida Progress Corp. 80,000 3,250
New Century Energies, Inc. <F3> 164,400 7,810
PP&L Resources, Inc. <F3> 103,300 2,382
SCANA Corp. <F3> 188,500 5,631
31,278
Utilities--Natural Gas (0.6%):
KeySpan Energy Corp. <F3> 41,100 1,402
Washington Gas Light Co. 46,400 1,262
2,664
Total Common Stocks (Cost $340,509) 460,708
Short Term Securities Held
As Collateral (14.7%)
General American Funding Agreement,
5.89%<F4>, 5/1/98 15,000 15,000
AIM Short Term Prime Obligations
Money Market Fund 3,169,214 3,169
AIM Liquid Assets Money
Market Fund 1,875,702 1,876
Bache Corp., Repurchase Agreement
(Collateralized by $16,179
various U.S. Government Securities,
6.03%-9.00%, 10/1/03-3/1/28,
market value--$15,301) 15,000 15,000
Golman, Repurchase Agreement
(Collateralized by $15,000
various Corporate Bonds,
3.25%-8.70%, 7/30/01-5/15/25
market value--$17,258) 15,000 15,000
Lehman Brothers Inc.,
Repurchase Agreement
(Collateralized by $15,470
Federal National Mortgage Assoc.,
6.05%, 5/25/21,
market value--$15,304) 15,000 15,000
Salomon Corp., Repurchase Agreement
(Collateralized by $5,143
Allstate Financing, 7.83%,
12/1/45, market value--$5,214) 5,000 5,000
Total Short Term Securities Held
As Collateral (Cost $70,045) 70,045
Total Investments (Cost $426,579) <F1>--114.6% 546,778
Other assets in excess of liabilities (14.6%)% (69,768)
TOTAL NET ASSETS--100.0% $477,010
<FN>
<F1> Cost for federal income tax purposes differs from value by net unrealized appreciation of securities
as follows (amounts in thousands):
Unrealized appreciation $131,871
Unrealized depreciation (11,672)
Net unrealized appreciation $120,199
<F2> Non-income producing securities.
<F3> All or a portion of this security was loaned as of April 30, 1998.
<F4> 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 April 30, 1998.
</FN>
See notes to financial statements.
</TABLE>
<TABLE>
THE VICTORY PORTFOLIOS Schedule of Investments
Ohio Regional Stock Fund April 30, 1998
(Amounts in Thousands, Except Shares) (Unaudited)
<CAPTION>
Shares or
Principal Market
Security Description Amount Value
<S> <C> <C>
Commercial Paper (3.4%)
Financial Services (3.4%):
Associates Corp., N.A.,
5.56%, 5/1/98 2,036 $ 2,036
Total Commercial Paper (Cost $2,036) 2,036
Common Stocks (96.6%)
Agriculture & Livestock (0.3%):
Andersons, Inc. 20,000 195
Airlines (2.1%):
Comair Holdings, Inc. 45,000 1,229
Amusement & Recreation
Services (0.9%):
Cedar Fair L.P. 20,000 530
Automotive Parts (4.7%):
Dana Corp. 22,000 1,300
Myers Industries, Inc. 21,780 542
TRW, Inc. 18,000 951
2,793
Banks (12.8%):
BancFirst Ohio Corp. 9,800 507
Charter One Financial, Inc. 24,150 1,633
FirstMerit Corp. 33,000 936
Huntington Bancshares, Inc. 10,000 356
Mahoning National Bancorp 5,100 194
National City Corp. 15,000 1,039
Park National Corp. 5,000 481
Provident Financial Group, Inc. 23,000 1,218
Second Bancorp, Inc. 4,470 165
Star Banc Corp. 17,000 1,074
7,603
Bio-Technology (0.3%):
Gliatech, Inc. <F2> 10,000 165
Broadcasting & Publishing (2.2%):
Scripps (E.W.) Co., Class A 23,000 1,304
Brokerage Services (1.7%):
McDonald & Co., Investments 34,000 978
Building Materials (3.2%):
Holophane Corp. <F2> 5,000 138
Medusa Corp. 15,000 922
Owens Corning 20,000 831
1,891
Chemicals--General (4.5%):
A. Schulman, Inc. 12,500 280
Ferro Corp. 25,000 720
Lubrizol Corp. 9,000 332
OM Group, Inc. 15,000 665
RPM, Inc. 40,000 690
2,687
Computers & Peripherals (2.4%):
Diebold, Inc. 35,000 1,435
Conglomerates (3.8%):
Chemed Corp. 15,000 601
Lancaster Colony Corp. 37,500 1,448
Park-Ohio Industries, Inc. <F2> 10,000 184
2,233
Consumer Products (3.1%):
American Greetings Corp., Class A 14,000 647
Gibson Greetings, Inc. <F2> 24,000 628
Rubbermaid, Inc. 20,000 573
1,848
Electronic & Electrical--
General (2.0%):
Cincinnati Microwave, Inc. <F2> 10,000 0
Parker-Hannifin Corp. 15,000 670
Pioneer-Standard Electronics, Inc. 43,000 540
1,210
Engineering, Industrial
Construction (0.3%):
Corrpro Cos., Inc. <F2> 10,000 148
Food Distributors (1.0%):
Kroger Co. <F2> 14,000 586
Food Processing & Packaging (0.7%):
Chiquita Brands International, Inc. 20,000 271
J.M. Smucker Co., Class A 5,000 123
394
Forest Products--
Lumber & Paper (1.2%):
Mead Corp. 20,000 693
Health Care (1.7%):
Omnicare, Inc. 30,000 1,028
Hospital & Nursing Equipment
& Supplies (1.7%):
Invacare Corp. 36,000 1,004
Hotels & Motels (0.3%):
Boykin Lodging Co. 8,000 188
Insurance (6.6%):
Cincinnati Financial Corp. 3,150 401
Ohio Casualty Corp. 18,000 871
Progressive Corp. 9,000 1,219
State Auto Financial Corp. 40,500 1,472
3,963
Machine Tools (1.0%):
Cincinnati Milacron, Inc. 17,000 528
Monarch Machine Tool Co. 5,000 41
569
Manufacturing--Capital Goods
(6.3%):
Commercial Intertech Corp. 20,000 431
Gorman-Rupp Co. 45,000 904
Gradall Industries, Inc. <F2> 10,000 173
Lincoln Electric Co., Class A 16,000 750
Robbins & Myers, Inc. 20,000 663
Thor Industries, Inc. 30,000 784
3,705
Manufacturing--Miscellaneous
(1.4%):
Essef Corp. <F2> 46,200 826
Metals--Fabrication (2.6%):
Amcast Industrial Corp. 15,000 323
Brush Wellman, Inc. 10,000 273
Rmi-Titanium Co. <F2> 10,000 223
Timken Co. 18,000 719
1,538
Mining (0.5%):
Cleveland-Cliffs, Inc. 5,500 308
Office Equipment & Supplies
(Non-Computer Related) (1.3%):
Reynolds & Reynolds Co., Class A 33,000 759
Oil & Gas Exploration, Production
& Services (4.7%):
Lomak Petroleum, Inc. 30,000 414
USX--Marathon Group 66,000 2,364
2,778
Paint, Varnishes, Enamels (1.7%):
Sherwin-Williams Co. 28,000 998
Pollution Control Services
& Equipment (0.0%):
Mid American Waste Systems, Inc. <F2> 20,100 0
Precision Instruments
& Related (1.1%):
Keithley Instruments, Inc. 75,000 623
Real Estate Investment
Trusts (1.5%):
Associates Estates Realty 8,000 153
Developers Divers Realty 8,000 318
Health Care REIT, Inc. 14,000 389
860
Restaurants (0.8%):
Bob Evans Farms, Inc. 10,000 204
Wendy's International, Inc. 10,000 240
444
Retail--Specialty Stores (2.1%):
Fabri-Centers of America, Class A <F2> 10,000 294
Fabri-Centers of America, Class B <F2> 10,000 263
Limited, Inc. 15,000 503
Value City Department Stores, Inc. <F2> 10,000 190
1,250
Rubber & Rubber Products (1.9%):
Cooper Tire & Rubber Co. 13,000 310
Goodyear Tire & Rubber Co. 12,000 840
1,150
Steel (1.5%):
Cold Metal Products, Inc. <F2> 7,000 32
Shiloh Industries, Inc. <F2> 25,000 548
Worthington Industries, Inc. 18,000 323
903
Telecommunications (0.5%):
Allen Telecom, Inc. <F2> 20,000 321
Transportation--Marine (0.5%):
Oglebay Norton Co. 6,000 272
Utilities--Electric (5.8%):
American Electric Power Co. 29,000 1,385
CINergy Corp. 25,000 872
DPL, Inc. 64,500 1,173
3,430
Utilities--Telecommunications
(2.6%):
Cincinnati Bell, Inc. 40,000 1,530
Wholesale Distribution (1.3%):
Applied Industrial Technology, Inc. 30,000 761
Total Common Stocks (Cost $25,316) 57,130
Rights & Warrants (0.0%)
Cincinnati Microwave, Inc.,
expire 12/31/98 <F2> 10,000 0
Total Rights & Warrants (Cost $15) 0
Total Investments (Cost $27,367) <F1>--100.0% 59,166
Liabilities in excess of other assets 0.0% (4)
TOTAL NET ASSETS--100.0% $59,162
<FN>
<F1> Cost for federal income tax purposes differs from value by net unrealized appreciation of securities
as follows (amounts in thousands):
Unrealized appreciation $32,354
Unrealized depreciation (555)
Net unrealized appreciation $31,799
<F2> Non-income producing securities.
</FN>
See notes to financial statements.
</TABLE>
<TABLE>
THE VICTORY PORTFOLIOS Schedule of Investments
International Growth Fund April 30, 1998
(Amounts in Thousands, Except Shares) (Unaudited)
<CAPTION>
Shares or
Principal Market
Security Description Amount Value
<S> <C> <C>
Commercial Paper (2.3%)
Associates Corp., 5.56%, 5/1/98 2,593 $ 2,593
Total Commercial Paper (Cost $2,593) 2,593
Common Stocks (94.5%)
Australia (3.3%):
Banks (0.9%):
National Australia Bank Ltd. 65,000 923
Leisure--Recreation, Gaming
(0.7%):
Aristocrat Leisure Ltd. 325,000 763
Oil & Gas Exploration,
Production & Services (0.4%):
Woodside Petroleum Ltd. 67,278 440
Publishing (0.6%):
Publishing & Broadcasting Ltd. 150,000 717
Retail (0.4%):
Woolworths Ltd. 144,000 496
Utilities--Telecommunications
(0.3%):
Telstra Corp., ADR 8,000 378
Total Australia 3,717
Brazil (0.7%):
Utilities--Telecommunications
(0.7%):
Telecomunicacoes Brasileriras
S/A-Telebras, ADR 6,200 755
Total Brazil 755
Britain (19.5%):
Advertising (0.5%):
WPP Group PLC 80,000 508
Airlines (0.4%):
British Aerospace 12,000 402
Banks (2.3%):
Allied Irish Banks PLC 116,000 1,603
Lloyds TSB Group PLC 76,000 1,140
2,743
Building Materials (0.8%):
CRH PLC 66,000 939
Diversified (0.3%):
BTR PLC 99,553 332
Food Processing & Packaging (0.1%):
Associated British Foods PLC 12,400 118
Insurance (1.9%):
Guardian Royal Exchange PLC 314,000 2,111
Leisure--Recreation, Gaming
(2.4%):
Ladbroke Group PLC 500,000 2,761
Manufacturing--Miscellaneous
(0.5%):
Siebe PLC 25,000 568
Oil & Gas Exploration,
Production & Services (1.1%):
British Petroleum Co. PLC 75,000 1,184
Pharmaceuticals (3.1%):
Glaxo Wellcome PLC 48,500 1,372
SmithKline Beecham PLC 180,000 2,156
3,528
Publishing (0.4%):
Reed International PLC 50,000 442
Transportation (4.1%):
National Express Group PLC 154,000 2,403
Peninsular & Oriental Steam
Navigation Co. PLC 150,000 2,227
4,630
Utilities--Telecommunications
(1.2%):
British Telecommunications PLC 124,000 1,348
Utilities--Water (0.4%):
Hyder PLC 28,000 450
Total Britain 22,064
Finland (3.2%):
Banks (2.2%):
Merita Ltd., Class A 359,177 2,406
Technology--Software (1.0%):
Nokia Oyj, Class A 17,156 1,153
Total Finland 3,559
France (7.9%):
Computers & Peripherals (0.9%):
Cap Gemini SA 6,700 869
Cap Gemini SA--New <F2> 577 75
944
Diversified (2.3%):
Compagnie de Saint Gobain 8,950 1,491
Compagnie Generale Des Eaux 6,090 1,131
2,622
Food Processing & Packaging (1.1%):
Groupe Danone 5,100 1,203
Oil & Gas Exploration,
Production & Services (0.8%):
Elf Aquitaine, SA 6,900 905
Oil-Integrated Companies (1.1%):
Total SA, Class B 10,400 1,236
Pharmaceuticals (1.3%):
Rhone-Poulenc, Class A 31,000 1,515
Utilities--Telecommunications
(0.4%):
France Telecom, SA <F2> 7,900 430
Total France 8,855
Germany (7.0%):
Airlines (0.9%):
Deutsche Lufthansa AG, Registered 45,000 1,052
Automobiles (1.1%):
Daimler-Benz AG <F2> 12,580 1,232
Banks (1.3%):
Commerzbank AG 21,000 816
Deutsche Bank AG 8,700 675
1,491
Chemicals--General (0.8%):
BASF AG 20,000 892
Insurance (0.9%):
Allianz AG, Registered 2,900 896
Manufacturing--Miscellaneous
(1.3%):
Siemens AG 10,100 595
Veba AG 14,000 922
1,517
Software & Computer
Services (0.7%):
SAP AG 1,600 756
Total Germany 7,836
Greece (1.3%):
Commercial Banking (0.9%):
National Bank of Greece <F2> 6,000 1,056
Utilities--Telecommunications
(0.4%):
Hellenic Telecommunication
Organization, SA 15,000 429
Total Greece 1,485
Hong Kong (2.2%):
Banks (0.2%):
Hang Seng Bank 22,200 187
Diversified (0.3%):
Hutchison Whampoa Ltd. 61,000 377
Newspapers (0.5%):
South China Morning Post
(Holdings) Ltd. 886,000 532
Real Estate (0.5%):
New World Development 200,000 569
Transportation--Marine (0.4%):
Hong Kong Ferry Holdings 450,000 436
Utilities--Electric (0.3%):
Beijing Datang Power
Generation Co. Ltd. 915,000 372
Total Hong Kong 2,473
Hungary (1.9%):
Oil-Integrated Companies (0.8%):
MOL Magyar Olaj-es Gazipari SP GDR 28,000 855
Transportation Leasing
& Trucking (0.1%):
RABA Rt. <F2> 5,000 78
Utilities--Telecommunications
(1.0%):
Matav Rt. <F2> 210,000 1,226
Total Hungary 2,159
Italy (5.9%):
Automobiles (1.0%):
Fiat SpA--RNC <F2> 487,000 1,212
Banks (0.7%):
Istituto Bancario San Paolo
di Torino SpA 53,000 766
Financial Services (0.5%):
Istituto Mobiliare Italiano SpA 35,500 581
Food Processing & Packaging (0.5%):
Parmalat Finanziaria SpA 246,000 555
Insurance (0.8%):
Assicurazioni Generali 30,000 902
Utilities--Telecommunications
(2.4%):
Telecom Italia Mobile SpA 208,000 1,186
Telecom Italia SpA 283,139 1,492
2,678
Total Italy 6,694
Japan (14.5%):
Automobiles (1.1%):
Honda Motor Co. Ltd. 33,000 1,199
Banks (1.5%):
Bank of Tokyo-Mitsubishi Ltd. 56,000 695
Sawna Bank Ltd. 120,000 1,062
1,757
Construction (0.4%):
Obayashi Corp. 108,000 482
Cosmetics & Related (1.8%):
Kao Corp. 60,000 883
Shiseido Co. Ltd. 93,000 1,228
2,111
Electronic & Electrical--
General (0.7%):
Makita Corp. 70,000 763
Entertainment (0.6%):
Nintendo Co. Ltd. 7,000 643
Financial Services (1.5%):
Takefuji Corp. 33,800 1,778
Food Manufacturing (0.5%):
Q.P. Corp. 80,000 578
Health & Personal Care (1.0%):
Hoya Corp. 35,000 1,160
Insurance (1.2%):
Tokio Marine & Fire Insurance Co. 120,000 1,308
Manufacturing--Miscellaneous
(0.8%):
Mitsubishi Heavy Industries Ltd. 250,000 927
Paint, Varnishes & Enamels (0.2%):
Kansai Paint 100,000 253
Printing (1.0%):
Toppan Printing Co. Ltd. 91,000 1,083
Retail--Department Stores (1.4%):
Isetan Co. Ltd. 81,000 674
Marui Co. Ltd. 55,000 870
1,544
Utilities--Telecommunications
(0.8%):
Nippon Telegraph & Telephone 100 878
Total Japan 16,464
Malaysia (0.5%):
Automobiles (0.5%):
Oriental Holdings Berhad 275,000 574
Total Malaysia 574
Mexico (0.4%):
Diversified (0.4%):
Desc, SA ADR 14,900 429
Total Mexico 429
Netherlands (6.8%):
Banks (2.8%):
ABN Amro Holding N.V. 23,900 582
ING Groep N.V. 40,000 2,599
3,181
Containers (0.8%):
Koninklijke Emballage Indistrie
Van Leer N.V. 36,000 918
Electronic & Electrical--
General (1.7%):
Phillips Electronics N.V. 22,000 1,938
Food Distributors, Supermarkets
& Wholesalers (0.3%):
Koninklijke Ahold N.V. 10,600 331
Insurance (0.3%):
Aegon N.V. 2,400 311
Oil-Integrated Companies (0.9%):
Royal Dutch Petroleum Co. ADR 17,500 990
Total Netherlands 7,669
New Zealand (0.5%):
Fisheries (0.1%):
Sanford Ltd. 53,200 74
Household Goods--Appliances,
Furnishings & Electronics (0.4%):
Fisher & Paykel Industries Ltd. 146,000 434
Total New Zealand 508
Norway (2.2%):
Banks (1.6%):
Den Norske Bank ASA 340,000 1,788
Construction (0.2%):
Kvaerner ASA 5,100 226
Transportation (0.4%):
Bergesen D Y ASA, Class A 21,600 466
Total Norway 2,480
Portugal (3.0%):
Banks (0.9%):
Banco Commercial
Portugues, Registered 30,000 1,051
Building Materials (0.8%):
Cimpor-Cimentos de Portugal,
SGPS, SA 25,000 925
Utilities--Electric (0.5%):
Electricidade de Portugal, SA 20,000 522
Utilities--Telecommunications
(0.8%):
Portugal Telecom, SA, Registered 16,300 876
Total Portugal 3,374
South Korea (0.2%):
Utilities--Electric (0.2%):
Korea Electric Power Corp. ADR 26,700 249
Total South Korea 249
Spain (5.6%):
Banks (1.5%):
Corporacion Bancaria de Espana, SA 20,000 1,667
Construction (2.1%):
Dragados & Construcciones, SA 75,000 2,429
Utilities--Electric (0.4%):
Endesa, SA 20,000 486
Utilities--Telecommunications
(1.6%):
Telefonica de Espana 42,000 1,753
Total Spain 6,335
Sweden (1.4%):
Household Goods--Appliances,
Furnishings & Electronics (0.5%):
Electrolux AB, Class B 5,500 512
Pharmaceuticals (0.5%):
Astra AB, Class A 26,000 534
Telecommunications (0.4%):
Telefonaktiebolaget LM Ericsson,
Class B 10,200 538
Total Sweden 1,584
Switzerland (6.5%):
Banks (3.5%):
Credit Suisse Group--Registered 13,500 2,970
UBS--Bearer 598 963
3,933
Food Processing & Packaging (1.1%):
Nestle, SA, Registered 650 1,261
Pharmaceuticals (1.9%):
Novartis AG, Registered 720 1,191
Roche Holding AG <F2> 89 902
2,093
Total Switzerland 7,287
Total Common Stocks (Cost $83,041) 106,550
Convertible Bonds (1.6%)
Banks (0.9%):
Mitsubishi Bank International Finance
Bermuda, 3.00%, 11/30/02 943 988
Financial Services (0.7%):
Bell Atlantic Financial Services, 5.75%,
4/1/03, Convertible into shares of
Telecom New Zealand 750 780
Total Convertible Bonds (Cost $1,693) 1,768
Preferred Stocks (1.0%)
Germany (1.0%):
Automobiles (0.6%):
Volkswagen AG <F2> 1,200 707
Consumer Products (0.4%):
Gardena Holding AG 20,000 446
Total Germany 1,153
Total Preferred Stocks (Cost $1,107) 1,153
Rights (0.0%)
Spain (0.0%):
Utilities--Telecommunications
(0.0%):
Telefonica de Espana,
expires 5/7/98 <F2> 42,000 33
Total Spain 33
Total Rights (Cost $0) 33
Total Investments (Cost $88,434) <F1>--99.4% 112,097
Other assets in excess of liabilities 0.6% 614
TOTAL NET ASSETS--100.0% $112,711
<FN>
<F1> Cost for federal income tax purposes differs from value by net unrealized appreciation of securities
as follows (amounts in thousands):
Unrealized appreciation $27,045
Unrealized depreciation (3,382)
Net unrealized appreciation $23,663
<F2> Non-income producing securities.
ADR--American Depository Receipts
GDR--Global Depository Receipts
</FN>
See notes to financial statements.
</TABLE>
<TABLE>
THE VICTORY PORTFOLIOS Schedule of Investments
Special Growth Fund April 30, 1998
(Amounts in Thousands, Except Shares) (Unaudited)
<CAPTION>
Shares or
Principal Market
Security Description Amount Value
<S> <C> <C>
Common Stocks (99.9%)
Airlines (1.0%):
SkyWest, Inc. 35,000 $ 1,418
Apparel (1.6%):
Ashworth, Inc. <F2> 130,000 2,178
Apparel--Footwear (1.7%):
Genesco, Inc. <F2> 28,000 474
Steven Madden Ltd. <F2> 180,000 1,834
2,308
Brewery (1.1%):
Boston Beer Co. Inc., Class A <F2> 140,000 1,566
Commercial Services (8.3%):
Abacus Direct Corp. <F2> 50,000 2,844
Cornell Corrections, Inc. <F2> 85,000 1,923
Corporate Family Solutions <F2> 31,700 844
Hooper Holmes, Inc. 100,000 2,356
Labor Ready, Inc. <F2> 70,000 2,205
Orthodontic Centers of America, <F2> 65,000 1,389
11,561
Computers & Peripherals (3.1%):
Dunn Computer Corp. <F2> 80,000 700
Manhattan Associates, Inc. <F2> 500 11
Systems & Computers
Technology Corp. <F2> 30,000 1,695
VereSign, Inc. <F2> 50,000 1,919
4,325
Consumer Products (2.5%):
Action Performance Cos., Inc. <F2> 50,000 1,731
Central Garden & Pet Co. <F2> 50,000 1,713
3,444
Cosmetics & Related (1.6%):
French Fragrances, Inc. <F2> 130,000 2,210
Electronic Components/
Instruments (4.7%):
Gentex Corp. <F2> 55,000 1,856
TAVA Technologies, Inc. <F2> 150,000 1,959
Uniphase Corp. <F2> 50,000 2,713
6,528
Food Processing & Packaging (2.0%):
American Italian Pasta Co., Class A <F2> 60,000 1,860
Authentic Specialty Foods <F2> 65,000 926
2,786
Health Care (1.3%):
Sunrise Assisted Living, Inc. <F2> 40,000 1,793
Homebuilders (1.2%):
The Ryland Group, Inc. 80,000 1,675
Insurance--Property, Casualty,
Health (1.0%):
Century Business Services <F2> 75,000 1,444
Leisure--Recreation,
Gaming (2.2%):
American Skiing Corp. <F2> 105,000 1,628
Family Golf Centers, Inc. <F2> 35,000 1,474
3,102
Medical Equipment
& Supplies (1.2%):
Perclose, Inc. <F2> 55,000 1,671
Medical--Biotechnology (2.5%):
Martek Biosciences Corp. <F2> 140,000 2,135
Matritech, Inc. <F2> 300,000 1,350
3,485
Metals--Nonferrous (0.1%):
International Precious
Metals Corp. <F2> 450,000 183
Oilfield Services & Equipment (2.4%):
Global Industries Ltd. <F2> 10,000 227
Superior Energy Services, Inc. <F2> 150,000 1,668
Venture Seismic Ltd. <F2> 200,000 1,513
3,408
Pharmaceuticals (5.6%):
Celegene Corp. <F2> 140,000 1,418
Coulter Pharmaceutical, Inc. <F2> 85,000 2,443
DUSA Pharmaceuticals, Inc. <F2> 140,000 1,855
NBTY, Inc. <F2> 105,000 2,100
7,816
Radio & Television (1.2%):
American Radio Systems Corp. <F2> 25,000 1,658
Restaurants (5.4%):
CKE Restaurants, Inc. 50,000 1,731
Papa John's International, Inc. <F2> 40,000 1,670
Showbiz Pizza Time, Inc. <F2> 50,000 1,931
The Cheesecake Factory <F2> 90,000 2,273
7,605
Retail (2.3%):
ONSALE, Inc. <F2> 65,000 1,637
White Cap Industries, Inc. <F2> 70,000 1,523
3,160
Retail--Specialty Stores (1.3%):
Pier 1 Imports, Inc. 70,000 1,846
Semiconductors (0.0%):
Broadcom Corp. Class A <F2> 600 29
Software & Computer
Services (31.1%):
Accelr8 Technology Corp. <F2> 95,000 1,639
Acxiom Corp. <F2> 65,000 1,576
At Home Corp., Series A <F2> 70,000 2,332
Ciber, Inc. <F2> 60,000 1,950
Clarify, Inc. <F2> 105,000 1,444
CMG Information Services <F2> 20,000 1,931
Discreet Logic, Inc. <F2> 77,000 1,376
Documentum, Inc. <F2> 33,000 1,778
DoubleClick, Inc. <F2> 40,000 1,668
EarthLink Network, Inc. <F2> 20,000 1,419
Excite, Inc. <F2> 35,000 2,341
Harbinger Corp. <F2> 40,000 1,455
Hyperion Software Corp. <F2> 32,000 1,388
Inspire Insurance Solutions <F2> 60,000 2,018
InterVU, Inc. <F2> 90,000 1,620
Intuit, Inc. <F2> 50,000 2,656
Lycos, Inc. <F2> 35,000 2,163
Mercury Interactive Corp. <F2> 60,000 2,430
Mindspring Enterprises, Inc. <F2> 25,000 1,688
Netscape Communications Corp. <F2> 70,000 1,912
NetSpeak Corp. <F2> 70,000 1,702
SEEC, Inc. <F2> 105,000 1,450
Sports Line USA, Inc. <F2> 70,000 2,468
Viagrafix Corp. <F2> 100,000 1,125
43,529
Telecommunications (2.8%):
IXC Communications, Inc. <F2> 40,000 1,995
Star Telecommunications, Inc. <F2> 70,000 1,894
3,889
Telecommunications--
Services & Equipment (4.3%):
Metro One Telecommunications <F2> 150,000 1,959
MRV Communications, Inc. <F2> 60,000 1,613
P-COM, Inc. <F2> 75,000 1,477
Westell Technologies, Inc. <F2> 88,500 918
5,967
Tobacco & Tobacco Products (1.3%):
Inso Corp. <F2> 100,000 1,800
Utilities--Telecommunications
(5.1%):
LCC International Inc., Class A <F2> 80,000 1,640
Omnipoint Corp. <F2> 70,000 1,715
Pacific Gateway Exchange, Inc. <F2> 35,000 1,995
Startec Global Communications
Corp.--Class A <F2> 70,000 1,785
7,135
Total Common Stocks (Cost $118,974) 139,519
Rights & Warrants (0.0%)
Engineering, Industrial
Construction (0.0%):
Morrison Knudsen Corp.,
Expire 3/11/03 <F2> 158 1
Total Rights & Warrants (Cost $0) 1
Total Investments (Cost $118,974) <F1>--99.9% 139,520
Other assets in excess of liabilities 0.1% 116
TOTAL NET ASSETS--100.0% $139,636
<FN>
<F1> Cost for federal income tax purposes differs from value by net unrealized appreciation of securities
as follows (amounts in thousands):
Unrealized appreciation $27,841
Unrealized depreciation (7,295)
Net unrealized appreciation $20,546
<F2> Non-income producing securities.
</FN>
See notes to financial statements.
</TABLE>
<TABLE>
Statements of Assets and Liabilities
The Victory Portfolios April 30, 1998
- ---------------------------------------------------------------------------------------------------------------------------
(Amounts in Thousands, Except Per Share Amounts) (Unaudited)
<CAPTION>
U.S. Government Prime Financial
Obligations Obligations Reserves
Fund Fund Fund
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS:
Investments, at amortized cost $ 441,313 $ 970,820 $683,299
Repurchase agreements, at cost 1,507,786 39,392 60,033
- ---------------------------------------------------------------------------------------------------------------------------
Total 1,949,099 1,010,212 743,332
Cash -- 1 --
Interest receivable 6,997 6,247 6,619
Receivable for capital shares issued -- 5 --
Prepaid expenses and other assets 77 63 13
- ---------------------------------------------------------------------------------------------------------------------------
Total Assets 1,956,173 1,016,528 749,964
- ---------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Dividends payable 7,961 4,309 3,222
Accrued expenses and other payables:
Investment advisory fees 575 305 306
Administration fees 24 13 10
Custodian fees 28 15 14
Transfer agent fees 29 20 15
Shareholder service fees -- 208 --
Shareholder service fees--Select Shares 284 -- --
Other 87 100 20
- ---------------------------------------------------------------------------------------------------------------------------
Total Liabilities 8,988 4,970 3,587
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Capital 1,947,215 1,011,555 746,561
Undistributed (distributions in excess of) net investment income (80) -- (173)
Accumulated undistributed net realized gains
(losses) from investment transactions 50 3 (11)
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets $1,947,185 $1,011,558 $746,377
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets
Investor Shares $ 522,330 -- --
Select Shares 1,424,855 -- --
- ---------------------------------------------------------------------------------------------------------------------------
Total $1,947,185 -- --
- ---------------------------------------------------------------------------------------------------------------------------
Outstanding units of beneficial interest (shares)
Investor Shares 522,290 -- --
Select Shares 1,424,904 -- --
- ---------------------------------------------------------------------------------------------------------------------------
Total 1,947,194 1,011,555 746,279
- ---------------------------------------------------------------------------------------------------------------------------
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 -- --
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<TABLE>
Statements of Assets and Liabilities
The Victory Portfolios April 30, 1998
- ---------------------------------------------------------------------------------------------------------------------------
(Amounts in Thousands, Except Per Share Amounts) (Unaudited)
<CAPTION>
Ohio
Tax-Free Municipal
Money Money
Market Market
Fund Fund
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS:
Investments, at amortized cost $521,442 $680,082
Interest and dividends receivable 3,177 6,358
Prepaid expenses and other assets 24 22
- ---------------------------------------------------------------------------------------------------------------------------
Total Assets 524,643 686,462
- ---------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Dividends payable 1,475 1,889
Accrued expenses and other payables:
Investment advisory fees 162 211
Administration fees 8 10
Custodian fees 9 12
Transfer agent fees 5 11
Shareholder service fees 59 118
Other 24 43
- ---------------------------------------------------------------------------------------------------------------------------
Total Liabilities 1,742 2,294
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Capital 522,901 684,162
Accumulated undistributed net realized gains from investment transactions -- 6
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets $522,901 $684,168
- ---------------------------------------------------------------------------------------------------------------------------
Outstanding units of beneficial interest (shares) 522,899 684,159
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value
Offering and redemption price per share $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<TABLE>
Statements of Assets and Liabilities
The Victory Portfolios April 30, 1998
- ---------------------------------------------------------------------------------------------------------------------------
(Amounts in Thousands, Except Per Share Amounts) (Unaudited)
<CAPTION>
Limited Government
Term Intermediate Fund For Mortgage
Income Fund Income Fund Income Fund
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value
(Cost $77,493; $238,156; $22,025 & $101,488) $77,675 $239,490 $22,516 $101,461
Cash -- -- -- --
Interest receivable 779 3,465 172 763
Receivable for capital shares issued -- -- 34 --
Receivable from brokers for investments sold 68 6,590 239 9,595
Prepaid expenses and other assets 8 11 15 8
- ---------------------------------------------------------------------------------------------------------------------------
Total Assets 78,530 249,556 22,976 111,827
- ---------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable to brokers for investments purchased -- 6,659 218 9,483
Payable for capital shares redeemed -- 1 9 3
Accrued expenses and other payables:
Investment advisory fees 22 94 1 30
Administration fees 1 4 -- 2
Custodian fees 1 4 1 3
Transfer agent fees 3 6 13 5
Shareholder service fees 14 46 4 20
Other 2 1 -- 2
- ---------------------------------------------------------------------------------------------------------------------------
Total Liabilities 43 6,815 246 9,548
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Capital 81,380 244,791 23,709 102,959
Undistributed net investment income 52 148 16 71
Net unrealized appreciation/depreciation from investments 182 1,334 491 (27)
Accumulated undistributed net realized
losses from investment transactions (3,127) (3,532) (1,486) (724)
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets $78,487 $242,741 $22,730 $102,279
- ---------------------------------------------------------------------------------------------------------------------------
Outstanding units of beneficial interest (shares) 7,908 25,221 2,331 9,302
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value
Redemption price per share $ 9.92 $ 9.62 $ 9.75 $ 11.00
- ---------------------------------------------------------------------------------------------------------------------------
Maximum sales charge 2.00% 5.75% 2.00% 5.75%
- ---------------------------------------------------------------------------------------------------------------------------
Maximum offering price per share
(100%/(100%-maximum sales charge) of
net asset value adjusted to nearest cent) $ 10.12 $ 10.21 $ 9.95 $ 11.67
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<TABLE>
Statements of Assets and Liabilities
The Victory Portfolios April 30, 1998
- ---------------------------------------------------------------------------------------------------------------------------
(Amounts in Thousands, Except Per Share Amounts) (Unaudited)
<CAPTION>
Investment National Ohio
Quality Municipal New York Municipal
Bond Bond Tax-Free Bond
Fund Fund Fund Fund
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (Cost $170,150;
$52,774; $19,655, $76,137 & $106,107) $170,849 $53,970 $20,575 $79,390
Cash -- -- -- --
Interest and dividends receivable 2,277 729 387 1,365
Receivable for capital shares issued 106 391 31 --
Receivable from brokers for investments sold 14,920 1,524 -- 841
Prepaid expenses and other assets 18 29 8 6
- ---------------------------------------------------------------------------------------------------------------------------
Total Assets 188,170 56,643 21,001 81,602
- ---------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for capital shares redeemed 72 40 -- --
Payable to brokers for investments purchased 14,531 1,186 -- 3,669
Accrued expenses and other payables:
Investment advisory fees 71 -- 5 23
Administration fees 3 1 -- 1
Custodian fees -- 3 2 1
Transfer agent fees 6 9 8 3
Shareholder service fees 32 -- -- 16
Shareholder service fees--Class A -- 12 4 --
Shareholder service and 12b-1 fees--Class B -- 1 2 --
Other 2 -- 1 3
- ---------------------------------------------------------------------------------------------------------------------------
Total Liabilities 14,717 1,252 22 3,716
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Capital 185,927 53,893 20,055 73,973
Undistributed net investment income 104 25 13 37
Net unrealized appreciation/depreciation
from investments 699 1,196 920 3,253
Accumulated undistributed net realized gains
(losses) from investment transactions (13,277) 277 (9) 623
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets $173,453 $55,391 $20,979 $77,886
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets
Class A $53,155 $17,450
Class B 2,236 3,529
- ---------------------------------------------------------------------------------------------------------------------------
Total $55,391 $20,979
- ---------------------------------------------------------------------------------------------------------------------------
Outstanding units of beneficial interest (shares)
Class A 5,044 1,392
Class B 212 281
- ---------------------------------------------------------------------------------------------------------------------------
Total 17,657 5,256 1,673 6,693
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value
Redemption price per share $ 9.82 $ 11.64
- ---------------------------------------------------------------------------------------------------------------------------
Redemption price per share--Class A $ 10.54 $ 12.54
- ---------------------------------------------------------------------------------------------------------------------------
Offering price per share--Class B<F1> $ 10.54 $ 12.54
- ---------------------------------------------------------------------------------------------------------------------------
Maximum sales charge 5.75% 5.75% 5.75% 5.75%
- ---------------------------------------------------------------------------------------------------------------------------
Maximum offering price per share
(100%/(100%-maximum sales charge) of
net asset value adjusted to nearest cent) $ 10.42 $ 12.35
- ---------------------------------------------------------------------------------------------------------------------------
Maximum offering price per share
(100%/(100%-maximum sales charge) of net
asset value adjusted to nearest cent)--Class A $ 11.18 $ 13.30
- ---------------------------------------------------------------------------------------------------------------------------
<FN>
<F1>Redemption price per Class B Share varies based on length of time held.
</FN>
</TABLE>
See notes to financial statements.
<TABLE>
Statements of Assets and Liabilities
The Victory Portfolios April 30, 1998
- ---------------------------------------------------------------------------------------------------------------------------
(Amounts in Thousands, Except Per Share Amounts) (Unaudited)
<CAPTION>
Convertible Real Estate
Balanced Securities Investment Value
Fund Fund Fund Fund
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (Cost $330,512; $106,107;
$13,537 & $413,914) $420,189 $122,103 $13,620 $613,455
Cash -- 2 1 --
Interest and dividends receivable 2,382 920 29 567
Receivable from affiliates -- -- 5 --
Receivable for capital shares issued 56 235 8 18
Receivable from brokers for investments sold 11,865 373 -- --
Net variation margin on open futures contracts -- -- -- --
Reclaim receivable 23 -- -- --
Unamortized organization costs -- -- 16 --
Prepaid expenses and other assets 21 20 10 18
- ---------------------------------------------------------------------------------------------------------------------------
Total Assets 434,536 123,653 13,689 614,058
- ---------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for capital shares redeemed 3 1 -- 9
Payable to brokers for investments purchased 12,555 1,368 -- --
Payable for return of collateral received -- -- -- 71,018
Payable for organization costs -- -- 18 --
Accrued expenses and other payables:
Investment advisory fees 263 75 1 395
Administration fees 6 2 -- 8
Custodian fees 2 11 -- 11
Transfer agent fees 20 5 2 7
Shareholder service fees -- 25 -- 101
Shareholder service fees--Class A 82 -- -- --
Shareholder service and 12b-1 fees--Class B 4 -- -- --
Other 97 18 -- 12
- ---------------------------------------------------------------------------------------------------------------------------
Total Liabilities 13,032 1,505 21 71,561
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Capital 318,700 103,821 13,275 301,373
Undistributed (distributions in excess of)
net investment income (182) 401 88 12
Net unrealized appreciation/depreciaation
from investments 89,861 15,996 83 199,541
Net unrealized appreciation/depreciation from translation
of assets and liabilities in foreign currencies (184) -- -- --
Accumulated undistributed net realized gains
from investment transactions 13,654 1,930 222 41,571
Accumulated undistributed net realized gains (losses)
from foreign currency transactions (345) -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets $421,504 $122,148 $13,668 $542,497
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets
Class A $416,890
Class B 4,614
- ---------------------------------------------------------------------------------------------------------------------------
Total $421,504
- ---------------------------------------------------------------------------------------------------------------------------
Outstanding units of beneficial interest (shares)
Class A 28,588
Class B 316
- ---------------------------------------------------------------------------------------------------------------------------
Total 28,904 8,720 1,134 28,818
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value
Redemption price per share $ 14.01 $ 12.05 $ 18.83
- ---------------------------------------------------------------------------------------------------------------------------
Redemption price per share--Class A $ 14.58
- ---------------------------------------------------------------------------------------------------------------------------
Offering price per share--Class B<F1> $ 14.59
- ---------------------------------------------------------------------------------------------------------------------------
Maximum sales charge 5.75% 5.75% 5.75% 5.75%
- ---------------------------------------------------------------------------------------------------------------------------
Maximum offering price per share
(100%/(100%-maximum sales charge) of
net asset value adjusted to nearest cent) $ 14.86 $ 19.98
- ---------------------------------------------------------------------------------------------------------------------------
Maximum offering price per share
(100%/(100%-maximum sales charge) of net
asset value adjusted to nearest cent)--Class A $ 15.47 $ 12.79
- ---------------------------------------------------------------------------------------------------------------------------
<FN>
*Redemption price per Class B Share varies based on length of time held.
</FN>
</TABLE>
See notes to financial statements.
<TABLE>
Statements of Assets and Liabilities
The Victory Portfolios April 30, 1998
- ---------------------------------------------------------------------------------------------------------------------------
(Amounts in Thousands, Except Per Share Amounts) (Unaudited)
<CAPTION>
Diversified Stock
Lakefront Stock Index Growth
Fund Fund Fund Fund
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (Cost $1,171; $849,946;
$432,637 & $135,070) $1,473 $1,106,582 $594,836 $231,432
Interest and dividends receivable 2 934 524 182
Receivable from affiliates 13 -- -- --
Receivable for capital shares issued -- 843 240 82
Receivable from brokers for investments sold -- 15,110 54,819 --
Net variation margin on open futures contracts -- -- 2,608 --
Unamortized organization costs 23 -- -- --
Prepaid expenses and other assets 4 54 46 12
- ---------------------------------------------------------------------------------------------------------------------------
Total Assets 1,515 1,123,523 653,073 231,708
- ---------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for capital shares redeemed 1 149 125 2
Payable to brokers for investments purchased -- 8,542 239 --
Payable for return of collateral received -- 70,045 -- --
Payable for organization costs 26 -- -- --
Accrued expenses and other payables:
Investment advisory fees 1 459 244 163
Administration fees -- 14 -- 4
Custodian fees -- 27 49 4
Transfer agent fees 2 103 10 7
Shareholder service fees -- -- -- 46
Shareholder service fees--Class A -- 187 -- --
Shareholder service and 12b-1 fees--Class B -- 36 -- --
Other -- 12 -- 3
- ---------------------------------------------------------------------------------------------------------------------------
Total Liabilities 30 79,574 667 229
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Capital 1,130 696,636 422,901 121,979
Undistributed (distributions in excess of)
net investment income 1 231 951 (122)
Net unrealized appreciation/depreciation
from investments 302 256,626 164,504 96,362
Accumulated undistributed net realized gains
(losses) from investment transactions 52 90,456 64,050 13,260
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets $1,485 $1,043,949 $652,406 $231,479
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets
Class A $ 998,346
Class B 45,603
- ---------------------------------------------------------------------------------------------------------------------------
Total $1,043,949
- ---------------------------------------------------------------------------------------------------------------------------
Outstanding units of beneficial interest (shares)
Class A 51,947
Class B 2,399
- ---------------------------------------------------------------------------------------------------------------------------
Total 115 54,346 30,508 11,198
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value
Redemption price per share $12.96 $ 21.38 $ 20.67
- ---------------------------------------------------------------------------------------------------------------------------
Redemption price per share--Class A $ 19.22
- ---------------------------------------------------------------------------------------------------------------------------
Offering and redemption price per share--Class B $ 19.01
- ---------------------------------------------------------------------------------------------------------------------------
Maximum sales charge 5.75% 5.75% 5.75% 5.75%
- ---------------------------------------------------------------------------------------------------------------------------
Maximum offering price per share
(100%/(100%-maximum sales charge) of
net asset value adjusted to nearest cent) $13.75 $ 22.68 $ 21.93
- ---------------------------------------------------------------------------------------------------------------------------
Maximum offering price per share
(100%/(100%-maximum sales charge) of net
asset value adjusted to nearest cent)--Class A $ 20.39
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<TABLE>
Statements of Assets and Liabilities
The Victory Portfolios April 30, 1998
- ---------------------------------------------------------------------------------------------------------------------------
(Amounts in Thousands, Except Per Share Amounts) (Unaudited)
<CAPTION>
Ohio
Special Regional International Special
Value Stock Growth Growth
Fund Fund Fund Fund
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (Cost $538,960; $27,367;
$88,434 & $118,974) $659,159 $59,166 $112,097 $139,520
Interest and dividends receivable 578 44 576 --
Receivable for capital shares issued 250 11 25 5
Receivable from brokers for investments sold -- -- 786 4,121
Unamortized organization costs -- -- -- --
Reclaim receivable -- -- 221 --
Prepaid expenses and other assets 32 7 10 14
- ---------------------------------------------------------------------------------------------------------------------------
Total Assets 660,019 59,228 113,715 143,660
- ---------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable to custodian -- -- 2 262
Payable for capital shares redeemed 82 5 13 4
Payable to brokers for investments purchased -- -- 807 3,612
Payable for return of collateral received 182,426 -- -- --
Accrued expenses and other payables:
Investment advisory fees 355 30 88 100
Administration fees 7 1 2 2
Custodian fees 13 2 32 8
Transfer agent fees 26 14 17 6
Shareholder service fees -- -- -- 21
Shareholder service fees--Class A 91 11 22 --
Shareholder service and 12b-1 fees--Class B 2 1 -- --
Other 7 2 21 9
- ---------------------------------------------------------------------------------------------------------------------------
Total Liabilities 183,009 66 1,004 4,024
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Capital 337,174 24,756 87,481 116,006
Undistributed (distributions in excess of)
net investment income 290 (1) 151 (612)
Net unrealized appreciation/depreciation
from investments 120,199 31,799 24,621 20,546
Net unrealized appreciation/depreciation from translation
of assets and liabilities in foreign currencies -- -- (977) --
Accumulated undistributed net realized gains
(losses) from investment transactions 19,347 2,608 (468) 3,696
Accumulated undistributed net realized gains
(losses) from foreign currency transactions -- -- 1,903 --
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets $477,010 $59,162 $112,711 $139,636
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets
Class A $474,526 $58,055 $112,476
Class B 2,484 1,107 235
- ---------------------------------------------------------------------------------------------------------------------------
Total $477,010 $59,162 $112,711
- ---------------------------------------------------------------------------------------------------------------------------
Outstanding units of beneficial interest (shares)
Class A 27,517 2,404 7,704
Class B 146 47 17
- ---------------------------------------------------------------------------------------------------------------------------
Total 27,663 2,451 7,721 9,566
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value
Redemption price per share $ 14.60
- ---------------------------------------------------------------------------------------------------------------------------
Redemption price per share--Class A $ 17.24 $ 24.15 $ 14.60
- ---------------------------------------------------------------------------------------------------------------------------
Offering and redemption price per share--Class B $ 16.96 $ 23.77 $ 14.24
- ---------------------------------------------------------------------------------------------------------------------------
Maximum sales charge 5.75% 5.75% 5.75% 5.75%
- ---------------------------------------------------------------------------------------------------------------------------
Maximum offering price per share
(100%/(100%-maximum sales charge) of
net asset value adjusted to nearest cent) $ 15.49
- ---------------------------------------------------------------------------------------------------------------------------
Maximum offering price per share
(100%/(100%-maximum sales charge) of net
asset value adjusted to nearest cent)--Class A $ 18.29 $ 25.62 $ 15.49
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<TABLE>
Statements of Operations
The Victory Portfolios For the Six Months Ended April 30, 1998
- ---------------------------------------------------------------------------------------------------------------------------
(Amounts in Thousands) (Unaudited)
<CAPTION>
U.S. Government Prime Financial
Obligations Obligations Reserves
Fund Fund Fund
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment Income:
Interest income $51,754 $25,688 $22,578
- ---------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees 3,223 1,569 1,969
Administration fees 1,025 552 498
Shareholder service fees -- 1,118 --
Shareholder service fees--Select Shares 1,696 -- --
Accounting fees 52 49 47
Custodian fees 176 89 80
Legal and audit fees 118 55 52
Trustees' fees and expenses 30 14 14
Transfer agent fees 53 37 25
Registration and filing fees 52 40 7
Printing fees 117 110 1
Other 14 6 9
- ---------------------------------------------------------------------------------------------------------------------------
Total Expenses 6,556 3,639 2,702
- ---------------------------------------------------------------------------------------------------------------------------
Expenses voluntarily reduced -- -- (78)
- ---------------------------------------------------------------------------------------------------------------------------
Net Expenses 6,556 3,639 2,624
- ---------------------------------------------------------------------------------------------------------------------------
Net Investment Income 45,198 22,049 19,954
- ---------------------------------------------------------------------------------------------------------------------------
Realized Gains (Losses) from Investments:
Net realized gains (losses) from investment transactions 71 3 3
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets resulting from operations $45,269 $22,052 $19,957
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<TABLE>
Statements of Operations
The Victory Portfolios For the Six Months Ended April 30, 1998
- ---------------------------------------------------------------------------------------------------------------------------
(Amounts in Thousands) (Unaudited)
<CAPTION>
Tax-Free Ohio Municipal
Money Market Money Market
Fund Fund
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Investment Income:
Interest income $9,321 $12,680
Dividend income 205 130
- ---------------------------------------------------------------------------------------------------------------------------
Total Income 9,526 12,810
- ---------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees 898 1,714
Administration fees 352 447
Shareholder service fees 626 837
Accounting fees 48 52
Custodian fees 51 66
Legal and audit fees 31 42
Trustees' fees and expenses 8 11
Transfer agent fees 14 23
Registration and filing fees 13 14
Printing fees 21 32
Other 4 5
- ---------------------------------------------------------------------------------------------------------------------------
Total Expenses 2,066 3,243
- ---------------------------------------------------------------------------------------------------------------------------
Expenses voluntarily reduced (22) (539)
- ---------------------------------------------------------------------------------------------------------------------------
Net Expenses 2,044 2,704
- ---------------------------------------------------------------------------------------------------------------------------
Net Investment Income 7,482 10,106
- ---------------------------------------------------------------------------------------------------------------------------
Realized Gains (Losses) from Investments:
Net realized gains (losses) from investment transactions -- 6
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets resulting from operations $7,482 $10,112
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<TABLE>
Statements of Operations
The Victory Portfolios For the Six Months Ended April 30, 1998
- ---------------------------------------------------------------------------------------------------------------------------
(Amounts in Thousands) (Unaudited)
<CAPTION>
Limited Government
Term Intermediate Fund For Mortgage
Income Fund Income Fund Income Fund
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income:
Interest income $2,539 $ 8,058 $ 803 $3,449
- ---------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees 198 910 54 256
Administration fees 59 182 16 77
Shareholder service fees 96 297 26 120
Accounting fees 18 36 27 24
Custodian fees 9 27 9 15
Legal and audit fees 7 17 2 7
Trustees' fees and expenses 1 4 -- 2
Transfer agent fees 7 10 20 7
Registration and filing fees 2 2 1 3
Printing fees 2 4 11 2
Other 3 8 1 4
- ---------------------------------------------------------------------------------------------------------------------------
Total Expenses 402 1,497 167 517
- ---------------------------------------------------------------------------------------------------------------------------
Expenses voluntarily reduced (61) (334) (60) (66)
- ---------------------------------------------------------------------------------------------------------------------------
Net Expenses 341 1,163 107 451
- ---------------------------------------------------------------------------------------------------------------------------
Net Investment Income 2,198 6,895 696 2,998
- ---------------------------------------------------------------------------------------------------------------------------
Realized/Unrealized Gains (Losses) from Investments:
Net realized gains (losses) from investment transactions (27) 1,742 133 1,354
Change in unrealized
appreciation/depreciation from investments (155) (1,453) (261) (744)
- ---------------------------------------------------------------------------------------------------------------------------
Net realized/unrealized losses from investments (182) 289 (128) 610
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets resulting from operations $2,016 $ 7,184 $ 568 $3,608
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<TABLE>
Statements of Operations
The Victory Portfolios For the Six Months Ended April 30, 1998
- ---------------------------------------------------------------------------------------------------------------------------
(Amounts in Thousands) (Unaudited)
<CAPTION>
National Ohio
Investment Municipal New York Municipal
Quality Bond Tax-Free Bond
Bond Fund Fund Fund Fund
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income:
Interest income $5,928 $1,212 $ 592 $2,043
Dividend income -- 57 10 28
- ---------------------------------------------------------------------------------------------------------------------------
Total Income 5,928 1,269 602 2,071
- ---------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees 659 146 56 233
Administration fees 132 40 15 58
Shareholder service fees 215 -- -- 85
Shareholder service fees--Class A -- 59 16 --
Shareholder service fees and 12b-1 fees--Class B -- 11 16 --
Accounting fees 34 30 26 24
Custodian fees 23 7 3 10
Legal and audit fees 19 4 3 6
Trustees' fees and expenses 3 1 -- 1
Transfer agent fees 25 20 12 7
Registration and filing fees 8 5 3 3
Printing fees 3 4 2 2
Other 6 3 1 3
- ---------------------------------------------------------------------------------------------------------------------------
Total Expenses 1,127 330 153 432
- ---------------------------------------------------------------------------------------------------------------------------
Expenses voluntarily reduced (217) (146) (42) (82)
- ---------------------------------------------------------------------------------------------------------------------------
Expenses before reimbursement from distributor 910 184 111 350
Expenses reimbursed by distributor -- -- (1) --
- ---------------------------------------------------------------------------------------------------------------------------
Net Expenses 910 184 110 350
- ---------------------------------------------------------------------------------------------------------------------------
Net Investment Income 5,018 1,085 492 1,721
- ---------------------------------------------------------------------------------------------------------------------------
Realized/Unrealized Gains (Losses)
from Investments:
Net realized gains (losses) from investment transactions 2,501 409 (9) 623
Change in unrealized
appreciation/depreciation from investments (1,634) (319) (213) (511)
- ---------------------------------------------------------------------------------------------------------------------------
Net realized/unrealized gains (losses) from investments 867 90 (222) 112
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets resulting from operations $5,885 $1,175 $ 270 $1,833
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<TABLE>
Statements of Operations
The Victory Portfolios For the Six Months Ended April 30, 1998
- ---------------------------------------------------------------------------------------------------------------------------
(Amounts in Thousands) (Unaudited)
<CAPTION>
Real
Convertible Estate
Balanced Securities Investment Value
Fund Fund<F1> Fund Fund
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income:
Interest income $ 5,324 $1,485 $ 42 $ 359
Dividend income 1,822 1,369 189 4,599
Foreign tax withholding (9) -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Total Income 7,137 2,854 231 4,958
- ---------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees 1,840 362 44 2,503
Administration fees 265 88 7 345
Shareholder service fees -- 57 5 618
Shareholder service fees--Class A 446 -- -- --
Shareholder service fees and 12b-1 fees--Class B 20 -- -- --
Accounting fees 57 4 17 46
Custodian fees 49 12 1 51
Legal and audit fees 25 6 2 35
Amortization of organization fees -- -- 2 --
Trustees' fees and expenses 6 3 -- 8
Transfer agent fees 34 11 5 16
Registration and filing fees 8 9 1 3
Printing fees 9 18 -- 9
Other 13 8 1 15
- ---------------------------------------------------------------------------------------------------------------------------
Total Expenses 2,772 578 85 3,649
- ---------------------------------------------------------------------------------------------------------------------------
Expenses voluntarily reduced (434) -- (50) (324)
- ---------------------------------------------------------------------------------------------------------------------------
Expenses before reimbursement
from distributor 2,338 578 35 3,325
Expenses reimbursed by distributor -- -- (21) --
- ---------------------------------------------------------------------------------------------------------------------------
Net Expenses 2,338 578 14 3,325
- ---------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 4,799 2,276 217 1,633
- ---------------------------------------------------------------------------------------------------------------------------
Realized/Unrealized Gains (Losses) from
Investments and Foreign Currencies:
Net realized gains (losses) from investment transactions 13,563 1,663 222 41,695
Net realized gains (losses) from foreign currency transactions 35 -- -- --
Net change in unrealized appreciation/depreciation
from investments 25,343 4,672 (411) 49,551
Change in unrealized appreciation/depreciation from
translation of assets and liabilities in foreign currencies (1) -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Net realized/unrealized gains from investments and
foreign currencies 38,940 6,335 (189) 91,246
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets resulting from operations $43,739 $8,611 $ 28 $92,879
- ---------------------------------------------------------------------------------------------------------------------------
<FN>
<F1> For the period December 1, 1997 through April 30, 1998.
</FN>
</TABLE>
See notes to financial statements.
<TABLE>
Statements of Operations
The Victory Portfolios For the Six Months Ended April 30, 1998
- ---------------------------------------------------------------------------------------------------------------------------
(Amounts in Thousands) (Unaudited)
<CAPTION>
Diversified Stock
Lakefront Stock Index Growth
Fund Fund Fund Fund
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income:
Interest income $ 9 $ 488 $ 2,594 $ 77
Dividend income -- 6,824 3,467 1,239
- ---------------------------------------------------------------------------------------------------------------------------
Total Income 9 7,312 6,061 1,316
- ---------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees 6 2,853 1,633 1,027
Administration fees 1 543 370 154
Shareholder service fees 1 -- -- 251
Shareholder service fees--Class A -- 992 -- --
Shareholder service fees and 12b-1 fees--Class B -- 181 -- --
Accounting fees 17 70 72 30
Custodian fees -- 88 79 23
Legal and audit fees 2 65 41 14
Amortization of organization costs 3 -- -- --
Trustees' fees and expenses -- 15 9 4
Transfer agent fees 4 222 22 11
Registration and filing fees 1 23 19 3
Printing fees -- 66 11 4
Other -- 27 16 7
- ---------------------------------------------------------------------------------------------------------------------------
Total Expenses 35 5,145 2,272 1,528
- ---------------------------------------------------------------------------------------------------------------------------
Expenses voluntarily reduced (3) (511) (755) (141)
- ---------------------------------------------------------------------------------------------------------------------------
Expenses before reimbursement
from distributor 32 4,634 1,517 1,387
Expenses reimbursed by distributor (31) -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Net Expenses 1 4,634 1,517 1,387
- ---------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 8 2,678 4,544 (71)
- ---------------------------------------------------------------------------------------------------------------------------
Realized/Unrealized Gains (Losses) from
Investments and Foreign Currencies:
Net realized gains (losses) from investment transactions 53 90,731 64,019 13,259
Change in unrealized
appreciation/depreciation from investments 160 80,813 39,864 29,150
- ---------------------------------------------------------------------------------------------------------------------------
Net realized/unrealized gains (losses) from
investments and foreign currencies 213 171,544 103,883 42,409
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets resulting from operations $221 $174,222 $108,427 $42,338
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<TABLE>
Statements of Operations
The Victory Portfolios For the Six Months Ended April 30, 1998
- ---------------------------------------------------------------------------------------------------------------------------
(Amounts in Thousands) (Unaudited)
<CAPTION>
Ohio
Special Regional International Special
Value Stock Growth Growth
Fund Fund Fund Fund
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income:
Interest income $ 354 $ 28 $ 93 $ 110
Dividend income 3,821 505 1,069 20
Foreign tax withholding (11) -- (75) --
- ---------------------------------------------------------------------------------------------------------------------------
Total Income 4,164 533 1,087 130
- ---------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees 2,220 207 565 539
Administration fees 311 41 77 81
Shareholder service fees -- -- -- 129
Shareholder service fees--Class A 540 64 120 --
Shareholder service fees and 12b-1 fees--Class B 10 4 1 --
Accounting fees 49 24 36 21
Custodian fees 53 8 97 18
Legal and audit fees 30 5 7 7
Trustees' fees and expenses 7 1 2 2
Transfer agent fees 69 21 23 9
Registration and filing fees 16 3 3 4
Printing fees 13 3 4 2
Other 13 3 4 3
- ---------------------------------------------------------------------------------------------------------------------------
Total Expenses 3,331 384 939 815
- ---------------------------------------------------------------------------------------------------------------------------
Expenses voluntarily reduced (240) (34) (67) (74)
- ---------------------------------------------------------------------------------------------------------------------------
Expenses before reimbursement
from distributor 3,091 350 872 741
Expenses reimbursed by distributor -- (3) (3) --
- ---------------------------------------------------------------------------------------------------------------------------
Net Expenses 3,091 347 869 741
- ---------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 1,073 186 218 (611)
- ---------------------------------------------------------------------------------------------------------------------------
Realized/Unrealized Gains (Losses) from
Investments and Foreign Currencies:
Net realized gains (losses) from investment transactions 19,481 2,607 1,605 3,808
Net realized gains (losses) from foreign
currency transactions -- -- (198) --
Change in unrealized
appreciation/depreciation from investments 29,905 3,794 14,733 (457)
Change in unrealized depreciation from translation
of assets and liabilities in foreign currencies -- -- (25) --
- ---------------------------------------------------------------------------------------------------------------------------
Net realized/unrealized gains (losses) from
investments and foreign currencies 49,386 6,401 16,115 3,351
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets resulting from operations $50,459 $6,587 $16,333 $2,740
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Statements of Changes in Net Assets
- ---------------------------------------------------------------------------------------------------------------------------
(Amounts in Thousands) (Unaudited)
<CAPTION>
U.S. Government Prime Financial
Obligations Fund Obligations Fund Reserves Fund
- ---------------------------------------------------------------------------------------------------------------------------
Six Six Six
Months Year Months Year Months Year
Ended Ended Ended Ended Ended Ended
April 30, October 31, April 30, October 31, April 30, October 31,
1998 1997<F1> 1998 1997 1998 1997
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
From Investment Activities:
Operations:
Net investment income $ 45,198 $ 73,928 $ 22,049 $ 25,590 $ 19,954 $ 40,386
Net realized gains (losses)
from investment transactions 71 72 3 14 3 10
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets resulting
from operations 45,269 74,000 22,052 25,604 19,957 40,396
- ---------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders:
From net investment income -- -- (22,049) (25,590) (19,954) (40,213)
Investor Shares (12,036) (19,759) -- -- -- --
Select Shares (33,162) (54,089) -- -- -- --
In excess of net
investment income -- (80) -- -- -- (173)
From net realized gains from
investment transactions -- -- (14) (13) -- --
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets from
distributions to shareholders (45,198) (73,928) (22,063) (25,603) (19,954) (40,386)
- ---------------------------------------------------------------------------------------------------------------------------
Capital Transactions:
Proceeds from shares issued 2,138,238 4,097,261 1,741,125 1,535,027 813,371 1,739,900
Dividends reinvested 26,206 30,384 19,615 22,658 1,232 2,086
Cost of shares redeemed (1,908,938) (3,793,926) (1,485,620) (1,317,256) (868,871) (1,709,344)
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets from
capital transactions 255,506 333,719 275,120 240,429 (54,268) 32,642
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets 255,577 333,791 275,109 240,430 (54,265) 32,652
Net Assets:
Beginning of period 1,691,608 1,357,817 736,449 496,019 800,642 767,990
- ---------------------------------------------------------------------------------------------------------------------------
End of period $ 1,947,185 $ 1,691,608 $ 1,011,558 $ 736,449 $ 746,377 $ 800,642
- ---------------------------------------------------------------------------------------------------------------------------
Share Transactions:
Issued 2,138,238 4,097,261 1,741,125 1,535,027 813,371 1,739,900
Reinvested 26,206 30,384 19,615 22,658 1,232 2,086
Redeemed (1,908,938) (3,793,926) (1,485,620) (1,317,256) (868,871) (1,709,344)
- ---------------------------------------------------------------------------------------------------------------------------
Change in shares 255,506 333,719 275,120 240,429 (54,268) 32,642
- ---------------------------------------------------------------------------------------------------------------------------
<FN>
<F1> Effective January 8, 1997, the U.S. Government Obligations Fund
designated the existing shares as Select Shares and commenced offering
Investor Shares.
</FN>
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Statements of Changes in Net Assets
- ---------------------------------------------------------------------------------------------------------------------------
(Amounts in Thousands) (Unaudited)
<CAPTION>
Tax-Free Ohio Municipal
Money Market Fund Money Market
- ---------------------------------------------------------------------------------------------------------------------------
Six Six
Months Year Months Year
Ended Ended Ended Ended
April 30, October 31, April 30, October 31,
1998 1997 1998 1997
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
From Investment Activities:
Operations:
Net investment income $ 7,482 $ 11,431 $ 10,106 $ 18,491
Net realized gains (losses) from investment transactions -- -- 6 --
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets resulting from operations 7,482 11,431 10,112 18,491
- ---------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders:
From net investment income (7,482) (11,431) (10,106) (18,491)
From net realized gains from investment transactions -- (3) -- --
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets from distributions to shareholders (7,482) (11,434) (10,106) (18,491)
- ---------------------------------------------------------------------------------------------------------------------------
Capital Transactions:
Proceeds from shares issued 594,934 578,925 585,242 1,046,897
Dividends reinvested 4,066 5,978 8,022 14,588
Cost of shares redeemed (488,323) (517,472) (560,080) (971,638)
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets from capital transactions 110,677 67,431 33,184 89,847
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets 110,677 67,428 33,190 89,847
Net Assets:
Beginning of period 412,224 344,796 650,978 561,131
- ---------------------------------------------------------------------------------------------------------------------------
End of period $ 522,901 $ 412,224 $ 684,168 $ 650,978
- ---------------------------------------------------------------------------------------------------------------------------
Share Transactions:
Issued 594,934 578,925 585,242 1,046,897
Reinvested 4,066 5,978 8,022 14,588
Redeemed (488,323) (517,472) (560,080) (971,638)
- ---------------------------------------------------------------------------------------------------------------------------
Change in shares 110,677 67,431 33,184 89,847
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Statements of Changes in Net Assets
- ---------------------------------------------------------------------------------------------------------------------------
(Amounts in Thousands) (Unaudited)
<CAPTION>
Limited Term Intermediate Fund For
Income Fund Income Fund Income
- ---------------------------------------------------------------------------------------------------------------------------
Six Six Six
Months Year Months Year Months Year
Ended Ended Ended Ended Ended Ended
April 30, October 31, April 30, October 31, April 30, October 31,
1998 1997 1998 1997 1998 1997
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
From Investment Activities:
Operations:
Net investment income $ 2,198 $ 5,262 $ 6,895 $ 15,363 $ 696 $ 1,374
Net realized gains (losses) from
investment transactions (27) (915) 1,742 (248) 133 99
Net change in unrealized appreciation/
depreciation from investments (155) 331 (1,453) 1,664 (261) (32)
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets resulting
from operations 2,016 4,678 7,184 16,779 568 1,441
- ---------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders:
From net investment income (2,177) (5,310) (6,866) (15,376) (689) (1,362)
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets from
distributions to shareholders (2,177) (5,310) (6,866) (15,376) (689) (1,362)
- ---------------------------------------------------------------------------------------------------------------------------
Capital Transactions:
Proceeds from shares issued 7,968 22,820 21,883 50,003 5,221 6,619
Dividends reinvested 1,585 4,476 4,980 11,254 463 852
Cost of shares redeemed (12,818) (34,770) (33,281) (85,906) (4,934) (6,265)
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets from
capital transactions (3,265) (7,474) (6,418) (24,649) 750 1,206
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets (3,426) (8,106) (6,100) (23,246) 629 1,285
Net Assets:
Beginning of period 81,913 90,019 248,841 272,087 22,101 20,816
- ---------------------------------------------------------------------------------------------------------------------------
End of period $ 78,487 $ 81,913 $242,741 $248,841 $22,730 $22,101
- ---------------------------------------------------------------------------------------------------------------------------
Share Transactions:
Issued 799 2,294 2,265 5,259 532 678
Reinvested 160 451 518 1,186 47 88
Redeemed (1,288) (3,500) (3,452) (9,028) (502) (644)
- ---------------------------------------------------------------------------------------------------------------------------
Change in shares (329) (755) (669) (2,583) 77 122
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Statements of Changes in Net Assets
- ---------------------------------------------------------------------------------------------------------------------------
(Amounts in Thousands) (Unaudited)
<CAPTION>
Government Investment Quality
Mortgage Fund Bond Fund
- ---------------------------------------------------------------------------------------------------------------------------
Six Six
Months Year Months Year
Ended Ended Ended Ended
April 30, October 31, April 30, October 31,
1998 1997 1998 1997
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
From Investment Activities:
Operations:
Net investment income $ 2,998 $ 7,147 $ 5,018 $ 9,460
Net realized gains (losses) from investment transactions 1,354 (160) 2,501 1,537
Net change in unrealized
appreciation/depreciation from investments (744) 1,733 (1,634) 1,026
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets resulting from operations 3,608 8,720 5,885 12,023
- ---------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders:
From net investment income (2,927) (7,092) (4,987) (9,369)
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets from distributions to shareholders (2,927) (7,092) (4,987) (9,369)
- ---------------------------------------------------------------------------------------------------------------------------
Capital Transactions:
Proceeds from shares issued 9,006 15,588 28,806 61,463
Proceeds from shares issued
in connection with acquisition -- -- -- 18,518
Dividends reinvested 1,422 3,890 2,668 6,852
Cost of shares redeemed (12,591) (43,337) (39,926) (59,287)
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets from capital transactions (2,163) (23,859) (8,452) 27,546
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets (1,482) (22,231) (7,554) 30,200
Net Assets:
Beginning of period 103,761 125,992 181,007 150,807
- ---------------------------------------------------------------------------------------------------------------------------
End of period $102,279 $103,761 $173,453 $181,007
- ---------------------------------------------------------------------------------------------------------------------------
Share Transactions:
Issued 818 1,442 2,927 6,404
Issued in connection with acquisition -- -- -- 1,929
Reinvested 130 361 272 715
Redeemed (1,143) (4,019) (4,051) (6,198)
- ---------------------------------------------------------------------------------------------------------------------------
Change in shares (195) (2,216) (852) 2,850
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Statements of Changes in Net Assets
- ---------------------------------------------------------------------------------------------------------------------------
(Amounts in Thousands) (Unaudited)
<CAPTION>
National Municipal New York
Bond Fund Tax-Free Fund
- ---------------------------------------------------------------------------------------------------------------------------
Six Six
Months Year Months Year
Ended Ended Ended Ended
April 30, October 31, April 30, October 31,
1998 1997 1998 1997
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
From Investment Activities:
Operations:
Net investment income $ 1,085 $ 1,903 $ 492 $ 920
Net realized gains (losses) from
investment transactions 409 280 (9) 37
Net change in unrealized appreciation/
depreciation from investments (319) 1,209 (213) 15
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets resulting
from operations 1,175 3,392 270 972
- ---------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders:
From net investment income
Class A (1,043) (1,836) (421) (846)
Class B (33) (68) (66) (118)
In excess of net investment income -- (1) -- (10)
From net realized gains from
investment transactions -- -- (37) (56)
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets from distributions
to shareholders (1,076) (1,905) (524) (1,030)
- ---------------------------------------------------------------------------------------------------------------------------
Capital Transactions:
Proceeds from shares issued 11,784 24,696 5,430 5,155
Dividends reinvested 857 1,664 371 674
Cost of shares redeemed (7,342) (16,620) (2,634) (3,974)
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets from
capital transactions 5,299 9,740 3,167 1,855
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets 5,398 11,227 2,913 1,797
Net Assets:
Beginning of period 49,993 38,766 18,066 16,269
- ---------------------------------------------------------------------------------------------------------------------------
End of period $55,391 $ 49,993 $20,979 $18,066
- ---------------------------------------------------------------------------------------------------------------------------
Share Transactions:
Issued 1,107 2,396 427 408
Reinvested 81 162 30 53
Redeemed (689) (1,616) (208) (314)
- ---------------------------------------------------------------------------------------------------------------------------
Change in shares 499 942 249 147
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Statements of Changes in Net Assets
- ---------------------------------------------------------------------------------------------------------------------------
(Amounts in Thousands) (Unaudited)
<CAPTION>
Ohio Municipal
Bond Fund Balanced Fund
- ---------------------------------------------------------------------------------------------------------------------------
Six Six
Months Year Months Year
Ended Ended Ended Ended
April 30, October 31, April 30, October 31,
1998 1997 1998 1997
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
From Investment Activities:
Operations:
Net investment income $ 1,721 $ 3,500 $ 4,799 $ 8,483
Net realized gains (losses) from investment transactions 623 663 13,563 19,086
Net realized gains (losses) from foreign currency transactions -- -- 35 (129)
Net change in unrealized
appreciation/depreciation from investments (511) 1,203 25,343 26,776
Change in unrealized depreciation from translation of
assets and liabilities in foreign currencies -- -- (1) (3)
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets resulting
from operations 1,833 5,366 43,739 54,213
- ---------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders:
From net investment income (1,712) (3,511) -- --
Class A -- -- (5,104) (8,296)
Class B -- -- (32) (30)
From net realized gains from investment transactions (663) -- (18,646) (8,510)
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets from distributions
to shareholders (2,375) (3,511) (23,782) (16,836)
- ---------------------------------------------------------------------------------------------------------------------------
Capital Transactions:
Proceeds from shares issued 8,114 18,452 68,709 77,476
Dividends reinvested 529 945 21,430 14,909
Cost of shares redeemed (8,258) (16,672) (34,816) (58,523)
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets from
capital transactions 385 2,725 55,323 33,862
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets (157) 4,580 75,280 71,239
Net Assets:
Beginning of period 78,043 73,463 346,224 274,985
- ---------------------------------------------------------------------------------------------------------------------------
End of period $77,886 $ 78,043 $421,504 $346,224
- ---------------------------------------------------------------------------------------------------------------------------
Share Transactions:
Issued 689 1,602 4,859 5,958
Reinvested 45 82 1,589 1,173
Redeemed (700) (1,450) (2,513) (4,462)
- ---------------------------------------------------------------------------------------------------------------------------
Change in shares 34 234 3,935 2,669
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Statements of Changes in Net Assets
- ---------------------------------------------------------------------------------------------------------------------------
(Amounts in Thousands) (Unaudited)
<CAPTION>
Convertible Real Estate
Securities Fund<F1> Investment Fund Value Fund
- ---------------------------------------------------------------------------------------------------------------------------
Five Six Six
Months Year Months Period Months Year
Ended Ended Ended Ended Ended Ended
April 30, October 31, April 30, October 31, April 30, October 31,
1998 1997 1998 1997<F2> 1998 1997
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
From Investment Activities:
Operations:
Net investment income $ 2,276 $ 3,727 $ 217 $ 79 $ 1,633 $ 4,081
Net realized gains (losses) from
investment transactions 1,663 8,742 222 20 41,695 39,027
Net change in unrealized
appreciation/depreciation
from investments 4,672 (1,161) (411) 494 49,551 60,140
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets resulting
from operations 8,611 11,308 28 593 92,879 103,248
- ---------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders:
From net investment income (2,076) (3,806) (149) (59) (1,788) (4,329)
From net realized gains from
investment transactions (8,444) (3,737) (20) -- (39,042) (17,674)
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets from distributions
to shareholders (10,520) (7,543) (169) (59) (40,830) (22,003)
- ---------------------------------------------------------------------------------------------------------------------------
Capital Transactions:
Proceeds from shares issued 36,435 46,957 10,933 3,842 32,779 102,144
Dividends reinvested 7,753 6,277 47 -- 37,784 9,573
Cost of shares redeemed (25,113) (33,495) (1,547) -- (52,162) (102,998)
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets from
capital transactions 19,075 19,739 9,433 3,842 18,401 8,719
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets 17,166 23,504 9,292 4,376 70,450 89,964
Net Assets:
Beginning of period 104,982 81,478 4,376 -- 472,047 382,083
- ---------------------------------------------------------------------------------------------------------------------------
End of period $122,148 $104,982 $13,668 $4,376 $542,497 $472,047
- ---------------------------------------------------------------------------------------------------------------------------
Share Transactions:
Issued 2,644 3,386 893 363 1,856 6,399
Reinvested 591 478 4 -- 2,324 652
Redeemed (1,840) (2,551) (126) -- (3,014) (6,344)
- ---------------------------------------------------------------------------------------------------------------------------
Change in shares 1,395 1,313 771 363 1,166 707
- ---------------------------------------------------------------------------------------------------------------------------
<FN>
<F1> Effective March 23, 1998, the SBSF Convertible Securities Fund became the
Victory Convertible Securities Fund. Changes in net assets prior to March
23, 1998 represent the SBSF Convertible Securities Fund.
<F2> The Real Estate Investment Fund commenced operations as of April 30, 1997.
</FN>
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Statements of Changes in Net Assets
- ---------------------------------------------------------------------------------------------------------------------------
(Amounts in Thousands) (Unaudited)
<CAPTION>
Lakefront Diversified
Fund Stock Fund Stock Index Fund
- ---------------------------------------------------------------------------------------------------------------------------
Six Six Six
Months Year Months Year Months Year
Ended Ended Ended Ended Ended Ended
April 30, October 31, April 30, October 31, April 30, October 31,
1998 1997<F1> 1998 1997 1998 1997
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
From Investment Activities:
Operations:
Net investment income $ 8 $ 12 $ 2,678 $ 6,546 $ 4,544 $ 6,644
Net realized gains (losses) from
investment transactions 53 20 90,731 90,018 64,019 31,506
Net change in unrealized
appreciation/depreciation
from investments 160 142 80,813 68,082 39,864 57,624
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets resulting
from operations 221 174 174,222 164,646 108,427 95,774
- ---------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders:
From net investment income (9) (10) -- -- (4,276) (6,516)
Class A -- -- (2,571) (6,667) -- --
Class B -- -- -- -- -- --
In excess of net investment income -- -- -- (47) -- --
From net realized gains from
investment transactions (21) -- (90,033) (67,736) (27,890) (6,553)
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets from distributions
to shareholders (30) (10) (92,604) (74,450) (32,166) (13,069)
- ---------------------------------------------------------------------------------------------------------------------------
Capital Transactions:
Proceeds from shares issued 43 1,089 173,019 446,487 93,575 164,875
Proceeds from shares issued
in connection with acquisition -- -- 86,317 -- 46,866 --
Dividends reinvested 15 5 70,793 72,928 31,947 12,031
Cost of shares redeemed (19) (3) (160,266) (396,524) (61,258) (71,720)
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets from
capital transactions 39 1,091 169,863 122,891 111,130 105,186
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets 230 1,255 251,481 213,087 187,391 187,891
Net Assets:
Beginning of period 1,255 -- 792,468 579,381 465,015 277,124
- ---------------------------------------------------------------------------------------------------------------------------
End of period $1,485 $1,255 $1,043,949 $ 792,468 $652,406 $465,015
- ---------------------------------------------------------------------------------------------------------------------------
Share Transactions:
Issued 4 111 9,905 26,479 4,696 9,543
Issued in connection with acquisition -- -- 4,725 -- 2,272 --
Reinvested 1 -- 4,273 4,886 1,736 741
Redeemed (2) -- (9,195) (23,505) (3,003) (4,140)
- ---------------------------------------------------------------------------------------------------------------------------
Change in shares 3 111 9,708 7,860 5,701 6,144
- ---------------------------------------------------------------------------------------------------------------------------
<FN>
<F1> The Lakefront Fund commenced operations as of March 3, 1997.
</FN>
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Statements of Changes in Net Assets
- ---------------------------------------------------------------------------------------------------------------------------
(Amounts in Thousands) (Unaudited)
<CAPTION>
Special Ohio Regional
Growth Fund Value Fund Stock Fund
- ---------------------------------------------------------------------------------------------------------------------------
Six Six Six
Months Year Months Year Months Year
Ended Ended Ended Ended Ended Ended
April 30, October 31, April 30, October 31, April 30, October 31,
1998 1997 1998 1997 1998 1997
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
From Investment Activities:
Operations:
Net investment income (loss) $ (71) $ 326 $ 1,073 $ 2,293 $ 186 $ 329
Net realized gains (losses) from
investment transactions 13,259 12,914 19,481 31,722 2,607 4,782
Net change in unrealized
appreciation/depreciation
from investments 29,150 28,590 29,905 47,587 3,794 9,508
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets resulting
from operations 42,338 41,830 50,459 81,602 6,587 14,619
- ---------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders:
From net investment income (48) (380) -- -- -- --
Class A -- -- (1,084) (2,649) (188) (335)
Class B -- -- -- -- -- --
In excess of net investment income -- (28) -- (1) -- (3)
From net realized gains from
investment transactions (12,887) (6,303) (31,840) (19,845) (4,773) (869)
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets from distributions
to shareholders (12,935) (6,711) (32,924) (22,495) (4,961) (1,207)
- ---------------------------------------------------------------------------------------------------------------------------
Capital Transactions:
Proceeds from shares issued 26,267 50,795 53,695 121,506 6,834 8,397
Dividends reinvested 11,125 5,917 27,345 18,750 3,444 877
Cost of shares redeemed (20,849) (54,051) (43,245) (67,529) (7,150) (13,898)
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets from
capital transactions 16,543 2,661 37,795 72,727 3,128 (4,624)
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets 45,946 37,780 55,330 131,834 4,754 8,788
Net Assets:
Beginning of period 185,533 147,753 421,680 289,846 54,408 45,620
- ---------------------------------------------------------------------------------------------------------------------------
End of period $231,479 $185,533 $477,010 $421,680 $59,162 $ 54,408
- ---------------------------------------------------------------------------------------------------------------------------
Share Transactions:
Issued 1,354 2,949 3,242 7,849 291 402
Reinvested 635 398 1,744 1,359 158 45
Redeemed (1,090) (3,188) (2,604) (4,404) (308) (678)
- ---------------------------------------------------------------------------------------------------------------------------
Change in shares 899 159 2,382 4,804 141 (231)
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Statements of Changes in Net Assets
- ---------------------------------------------------------------------------------------------------------------------------
(Amounts in Thousands) (Unaudited)
<CAPTION>
International Special
Growth Fund Growth Fund
- ---------------------------------------------------------------------------------------------------------------------------
Six Six
Months Year Months Year
Ended Ended Ended Ended
April 30, October 31, April 30, October 31,
1998 1997 1998 1997
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
From Investment Activities:
Operations:
Net investment income (loss) $ 218 $ 750 $ (611) $ (859)
Net realized gains (losses) from investment transactions 1,605 5,879 3,808 12,119
Net realized gains (losses) from foreign currency transactions (198) (752) -- --
Net change in unrealized
appreciation/ depreciation from investments 14,733 1,684 (457) 6,482
Change in unrealized appreciation from translation of
assets and liabilities in foreign currencies (25) -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets resulting
from operations 16,333 7,561 2,740 17,742
- ---------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders:
Class A (67) (128) -- --
Class B -- -- -- --
From net realized gains from investment transactions (5,849) (4,172) (11,370) (4,070)
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets from distributions
to shareholders (5,916) (4,300) (11,370) (4,070)
- ---------------------------------------------------------------------------------------------------------------------------
Capital Transactions:
Proceeds from shares issued 72,371 32,867 19,147 42,610
Proceeds from shares issued in connection with acquisition -- -- 35,309 --
Dividends reinvested 3,831 2,596 8,448 3,006
Cost of shares redeemed (80,281) (53,986) (19,203) (42,560)
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets from
capital transactions (4,079) (18,523) 43,701 3,056
- ---------------------------------------------------------------------------------------------------------------------------
Change in net assets 6,338 (15,262) 35,071 16,728
Net Assets:
Beginning of period 106,373 121,635 104,565 87,837
- ---------------------------------------------------------------------------------------------------------------------------
End of period $112,711 $106,373 $139,636 $104,565
- ---------------------------------------------------------------------------------------------------------------------------
Share Transactions:
Issued 5,365 2,433 1,370 2,812
Issued in connection with acquisition -- -- 2,481 --
Reinvested 311 202 659 216
Redeemed (5,946) (3,996) (1,364) (2,819)
- ---------------------------------------------------------------------------------------------------------------------------
Change in shares (270) (1,361) 3,146 209
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<TABLE>
Statements of Cash Flows<F1>
The Victory Portfolios For the Six Months Ended April 30, 1998
- ---------------------------------------------------------------------------------------------------------------------------
(Amounts in Thousands) (Unaudited)
<CAPTION>
Diversified Special
Value Stock Value
Fund Fund Fund
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Cash flows from operating activities:
Interest and dividend income $ 4,957 $ 7,312 $ 4,165
Net expenses (3,325) (4,634) (3,092)
- ---------------------------------------------------------------------------------------------------------------------------
Net Investment Income 1,632 2,678 1,073
- ---------------------------------------------------------------------------------------------------------------------------
Adjustments to reconcile net investment income to net cash
provided by operating activities:
Change in interest receivable (3) 1 2
Change in dividend receivable 43 (202) (137)
Change in accrued expenses and other payables 18 79 10
- ---------------------------------------------------------------------------------------------------------------------------
Total adjustments 58 (122) (125)
- ---------------------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 1,690 2,556 948
- ---------------------------------------------------------------------------------------------------------------------------
Cash flows from investing activities:
Proceeds from sales of investments 1,530,992 2,014,821 1,406,102
Purchases of investments (1,510,245) (2,070,591) (1,412,475)
- ---------------------------------------------------------------------------------------------------------------------------
Net cash provided by investing activities 20,747 (55,770) (6,373)
- ---------------------------------------------------------------------------------------------------------------------------
Cash flows from financing activities:
Proceeds from shares issued 32,763 235,177 54,172
Cost of shares redeemed (52,154) (160,156) (43,168)
Distributions paid to shareholders (40,830) (92,603) (32,924)
Dividends reinvested 37,784 70,792 27,345
- ---------------------------------------------------------------------------------------------------------------------------
Net cash used by financing activities (22,437) 53,210 5,425
- ---------------------------------------------------------------------------------------------------------------------------
Net decrease in cash -- (4) --
Cash at beginning of period -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Cash at end of period $ -- $ (4) $ --
- ---------------------------------------------------------------------------------------------------------------------------
<FN>
<F1> The Statements of Cash Flows are provided for the Funds that have
participated in securities lending during the period.
</FN>
</TABLE>
See notes to financial statements.
Notes to Financial Statements
- ----------------------------------------------------------------------------
The Victory Portfolios April 30, 1998
(Unaudited)
1. Organization:
The Victory Portfolios (collectively, the "Trust" and individually, a "Fund")
was organized on December 6, 1995 as a successor to a company of the same
name organized as a Massachusetts business trust on February 5, 1986. The
Trust is registered under the Investment Company Act of 1940, as amended,
(the "1940 Act") as an open-end investment company established as a Delaware
business trust. The Trust is authorized to issue an unlimited number of
shares which are units of beneficial interest with a par value of $0.001. The
Trust presently offers shares of 30 active funds. Included are the financial
statements and financial highlights of the U.S. Government Obligations Fund,
Prime Obligations Fund, Financial Reserves Fund, Tax-Free Money Market Fund,
Ohio Municipal Money Market Fund, Limited Term Income Fund, Intermediate
Income Fund, Investment Quality Bond Fund, Government Mortgage Fund, Fund for
Income, National Municipal Bond Fund, New York Tax-Free Fund, Ohio Municipal
Bond Fund, Convertible Securities Fund, Balanced Fund, Stock Index Fund,
Diversified Stock Fund, Value Fund, Growth Fund, Special Value Fund, Special
Growth Fund, Ohio Regional Stock Fund, International Growth Fund, Lakefront
Fund, and the Real Estate Investment ("REI") Fund.
The U.S. Government Obligations Fund is authorized to issue two classes of
shares: Investor Shares and Select Shares. The 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 The Prime Obligations Fund seek to
provide current income consistent with liquidity and stability of principal.
The Financial Reserves Fund seeks 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 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 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 Convertible Securities Fund seeks to provide a high
level of current income together with long-term capital appreciation. 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 and the Growth Fund seek to
provide long term growth of capital. The Value and Special Value Fund seek to
provide long-term growth of capital and dividend income. The Special Growth
Fund and The Ohio Regional Stock Fund seek to provide capital appreciation.
The International Growth Fund seeks to provide capital growth consistent with
reasonable investment risk. The Lakefront Fund seeks to provide long-term
growth of capital and income. The REI Fund seeks to provide total return
through investments in real estate-related securities.
2. Reorganization:
The Trust entered an Agreement and Plan of Reorganization with The SBSF
Funds, Inc. d/b/a Key Mutual Funds pursuant to which all of the assets and
liabilities of each Key Mutual Fund transferred to a Fund of the Victory
Portfolios in exchange for shares of the corresponding Fund. The SBSF Fund
transferred its assets and liabilities to the Victory Diversified Stock Fund.
The Key Stock Index Fund transferred its assets and liabilities to the
Victory Stock Index Fund. The SBSF Capital Growth Fund transferred its assets
and liabilities to the Victory Special Growth Fund. The SBSF Convertible
Securities Fund transferred its assets and liabilities to the Victory
Convertible Securities Fund. The reorganization, which qualified as a
tax-free exchange for federal income tax purposes, was completed on March 16,
1998 for the Victory Diversified Stock, Victory Stock Index, and Victory
Special Growth funds and March 23, 1998 for the Victory Convertible
Securities Fund, following approval by shareholders of SBSF Funds, Inc. d/b/a
Key Mutual Funds at a special shareholder meeting held on March 6, 1998. The
following is a summary of shares outstanding, net assets, net asset value per
share and unrealized appreciation immediately before and after the
reorganization:
<TABLE>
<CAPTION>
Before After
Reorganization Reorganization
- ---------------------------------------------------------------------------------------------------------------------------
SBSF Victory Victory
Convertible Convertible Convertible
Securities Securities Securities
Fund Fund Fund
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Shares (000) 8,557 -- 8,557
Net Assets (000) $120,143 -- $120,143
Net Asset Value $ 14.04 -- $ 14.04
Unrealized Appreciation (000) $ 15,775 -- $ 15,775
</TABLE>
<TABLE>
<CAPTION>
Before After
Reorganization Reorganization
- ---------------------------------------------------------------------------------------------------------------------------
Victory Victory
Diversified Diversified
SBSF Stock Fund Stock Fund
Fund (Class A) (Class A)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Shares (000) 5,825 47,409 52,135
Net Assets (000) $86,317 $865,944 $952,261
Net Asset Value $ 14.82 $ 18.27 $ 18.27
Unrealized Appreciation (000) $24,319 $215,899 $240,218
</TABLE>
<TABLE>
<CAPTION>
Before After
Reorganization Reorganization
- ---------------------------------------------------------------------------------------------------------------------------
Key Victory Victory
Stock Index Stock Stock
Fund Index Fund Index Fund
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Shares (000) 3,286 28,599 30,871
Net Assets (000) $46,866 $589,611 $636,477
Net Asset Value $ 14.26 $ 20.62 $ 20.62
Unrealized Appreciation (000) $ 8,966 $189,225 $198,191
</TABLE>
<TABLE>
<CAPTION>
Before After
Reorganization Reorganization
- ---------------------------------------------------------------------------------------------------------------------------
SBSF Victory Victory
Capital Special Special
Growth Fund Growth Fund Growth Fund
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Shares (000) 3,454 7,340 9,821
Net Assets (000) $35,309 $104,465 $139,774
Net Asset Value $ 10.22 $ 14.23 $ 14.23
Unrealized Appreciation (000) $ 4,227 $ 15,458 $ 19,685
</TABLE>
3. Significant Accounting Policies:
The following is a summary of significant accounting policies followed by the
Trust in the preparation of its 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 estimates.
Securities Valuation:
Investments of the U.S. Government Obligations Fund, Prime Obligations Fund,
Financial Reserves Fund, Tax-Free Money Market Fund, and the 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 within
397 days, or (b) maintain a dollar-weighted-average portfolio maturity which
exceeds 90 days.
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 Mortgage
Fund, Fund for Income, National Municipal Bond Fund, New York Tax-Free Fund,
Ohio Municipal Bond Fund, Convertible Securities Fund, Balanced Fund, Stock
Index Fund, Diversified Stock Fund, Value Fund, Growth Fund, Special Value
Fund, Special Growth Fund, Ohio Regional Stock Fund, International Growth
Fund, Lakefront Fund, and the REI Fund (collectively "the variable net asset
value funds"), and investments in Real Estate Investment Trusts 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,
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 Trust are maintained in U.S. dollars.
Investment securities and 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 Trust isolates that portion of the results of operations resulting from
changes in foreign exchange rates from those resulting from changes in market
prices of securities held.
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 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 open. 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, International Growth Fund, and Lakefront Fund may enter into contracts
for the future delivery of 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 Trust 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 Trust 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 Trust 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 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 do not earn income until
settlement date.
Securities Lending:
The U.S. Government Obligations Fund, Prime Obligations Fund, Financial
Reserves Fund, Tax-Free Money Market Fund, Ohio Municipal Money Market Fund,
Limited Term Income Fund, Intermediate Income Fund, Investment Quality Bond
Fund, Government Mortgage Fund, Fund for Income, Convertible Securities Fund,
Balanced Fund, Stock Index Fund, Diversified Stock Fund, Value Fund, Growth
Fund, Special Value Fund, Special Growth Fund, Ohio Regional Stock Fund,
International Growth Fund, Lakefront Fund and the REI Fund may, from time to
time, lend securities from their portfolio to broker-dealers, banks,
financial institutions and institutional borrowers of securities approved by
the Board. The Trust will limit its securities lending to 331/3% of the total
assets of each Fund. Key Trust Company of Ohio, N.A. ("Key Trust"), an
affiliate of the Adviser, serves as the lending agent for the Trust pursuant
to a Securities Lending Agency Agreement (the "Lending Agreement"). Under
guidelines established by the Board of Trustees, Key Trust must maintain the
loan collateral at all times in an amount equal to at least 102% of the
current market value of the loaned securities in the form of cash or U.S.
Government obligations, to secure the return of the loaned securities. Key
Trust, at the direction of the Adviser, may invest the collateral in
short-term debt instruments that the Adviser has determined present minimal
credit risks. There is a risk of delay in receiving collateral or in
receiving the securities loaned or even a loss of rights in the collateral
should the borrower of the securities fail financially. By lending its
securities, a Fund can increase its income by continuing to receive interest
or dividends on the loaned securities as well as investing the cash
collateral in short-term U.S. Government securities, repurchase agreements,
or other short term securities. The cash or subsequent short-term investments
are recorded as assets of the Funds, offset by a corresponding liability to
repay the cash at the termination of the loan. In addition, the short-term
securities purchased with the cash collateral are included in the
accompanying Schedules of Investments. Fixed income securities received as
collateral are not recorded as an asset or liability of the Funds because the
Fund does not have effective control of such securities. Loans are subject to
termination by the Trust or the borrower at any time. According to Generally
Accepted Accounting Principles (GAAP), a statement of cash flows is presented
if the Fund lent out, on average, more than 10% of net assets during the
year. Under this guideline, a statement of cash flows is presented for
Diversified Stock Fund, Special Value Fund, and Value Fund. As of April 30,
1998, the following Funds had securities with the following market values on
loan (amounts in thousands):
<TABLE>
<CAPTION>
Market Value Market Value
of Collateral of Loaned Securities
- --------------------------------------------------------------------------
<S> <C> <C>
Diversified Stock Fund $ 70,045 $ 70,045
Special Value Fund 182,426 182,426
Value Fund 71,018 71,018
</TABLE>
The loaned securities were fully collateralized by cash and short-term
securities as of April 30, 1998.
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 Convertible Securities Fund, Stock Index Fund,
Diversified Stock Fund, Value Fund, Growth Fund, Special Value Fund, Special
Growth Fund, Ohio Regional Stock Fund, International Growth Fund, Lakefront
Fund, and the REI Fund. Dividends from net investment income are declared and
paid monthly for the Limited Term Income Fund, Intermediate Income Fund,
Investment Quality 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.
The amounts of dividends from net investment income and of distributions from
net realized gains are determined in accordance with federal income tax
regulations which may differ from generally accepted accounting principles.
These "book/tax" differences are either considered temporary or permanent in
nature. To the extent these differences are permanent in nature, such amounts
are reclassified within the components of net assets based on their federal
tax-basis treatment; temporary differences do not require reclassification.
Dividends and distributions to shareholders which exceed net investment
income and realized capital gains for financial reporting purposes but not
for tax purposes are reported as dividends in excess of net investment income
or distributions in excess of net realized gains. To the extent they exceed
net investment income and net realized gains for tax purposes, they are
reported as distributions of capital.
Federal Income Taxes:
It is the policy of each Fund to qualify or 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 Trust 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 Lakefront and REI's organization and
registration under the 1940 Act and the Securities Act of 1933 will be paid
by those Funds. Such expenses are being amortized over a period of five years
commencing with the respective inception dates.
4. Purchases and Sales of Securities:
Purchases and sales of securities (excluding short-term securities) for the
period ended April 30, 1998 were as follows (amounts in thousands):
<TABLE>
<CAPTION>
Purchases Sales
- -----------------------------------------------------------------------------
<S> <C> <C>
Limited Term Income Fund $ 50,090 $ 47,254
Intermediate Income Fund 291,347 287,748
Fund for Income 13,762 12,454
Government Mortgage Fund 140,382 145,127
Investment Quality Bond Fund 380,568 392,311
National Municipal Bond Fund 31,983 27,816
New York Tax-Free Fund 6,180 3,380
Ohio Municipal Bond Fund 27,791 27,316
Balanced Fund 380,772 341,826
Convertible Securities Fund 51,049 38,710
REI Fund 10,715 2,793
Value Fund 86,768 101,524
Lakefront Fund 237 232
Diversified Stock Fund 279,718 307,376
Stock Index Fund 45,049 93,908
Growth Fund 37,604 56,323
Special Value Fund 77,303 69,613
Ohio Regional Stock Fund 1,889 4,413
International Growth Fund 41,172 48,723
Special Growth Fund 161,992 125,400
</TABLE>
5. Related Party Transactions:
Investment advisory services are provided to all the Funds by Key Asset
Management Inc. ("the Adviser"), a wholly owned subsidiary of KeyBank
National Association ("Key"), formerly Society National Bank, a wholly owned
subsidiary of KeyCorp. On February 28, 1997, Key Asset Management Inc. became
the surviving corporation after the reorganization of four indirect
investment adviser subsidiaries of KeyCorp, including KeyCorp Mutual Fund
Advisers. Lakefront Capital Investors, Inc. serves as the sub-adviser for the
Lakefront Fund. 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, receives 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 Agent for all the Funds except the U.S. Government
Obligations Funds (Investor Shares), Financial Reserves Fund 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
of up to 0.25% of the average daily net assets of the Funds serviced.
BISYS Fund Services (the "Administrator"), an indirect, wholly-owned
subsidiary of The BISYS Group, Inc. ("BISYS") serves as the administrator and
distributor to the Trust. Certain officers of the Funds are affiliated with
BISYS. Such officers receive no direct payments or fees from the Trust for
serving as officers.
Under the terms of the administration agreement, effective October 1, 1997,
the Administrator's fee is computed at the annual rate of 0.15% of each
Fund's average daily net assets of $300 million and less, 0.12% of each funds
average daily net assets between $300 million and $600 million and 0.10% of
each Fund's average daily net assets greater than $600 million. Under a
Sub-Administration agreement, BISYS pays Key Asset Management Inc. a fee of
up to 0.05% of each Funds average daily net assets to perform some of the
administrative duties for the Funds. Pursuant to a 12b-1 Plan, the
Distributor may receive fees computed at the annual rate of 0.75% of the
average daily net assets of Class B Shares of the 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 period ended
April 30, 1998, the Distributor received approximately $1,224,000 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 $1,202,000 to affiliates of the Funds. BISYS Fund
Services, Ohio, Inc. (the Company), an affiliate of BISYS, serves the Trust
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 or reimbursed to assist the Trust in
maintaining competitive expense ratios.
Additional information regarding related party transactions is as follows for
the period ended April 30, 1998:
<TABLE>
<CAPTION>
Investment Administration
Advisory Fees Fees
- ---------------------------------------------------------------------------------------------------------------------------
Percentage
of Average Voluntary Voluntary
Daily Fee Fee
Net Assets Reductions Reductions
- ---------------------------------------------------------------------------------------------------------------------------
(000) (000)
<S> <C> <C> <C>
U.S. Government Obligations Fund 0.35% $ -- $ --
Prime Obligations Fund 0.35% -- --
Financial Reserves Fund 0.50% 78 --
Tax-Free Money Market Fund 0.35% 22 --
Ohio Municipal Money Market Fund 0.50% 539 --
Limited Term Income Fund 0.50% 61 --
Intermediate Income Fund 0.75% 334 --
Fund for Income 0.50% 50 10
Government Mortgage Fund 0.50% 66 --
Investment Quality Bond Fund 0.75% 217 --
National Municipal Bond Fund 0.55% 146 --
New York Tax-Free Fund 0.55% 33 9
Ohio Municipal Bond Fund 0.60% 82 --
Balanced Fund 1.00% 434 --
Convertible Securities 0.75% -- --
Real Estate Investment Fund 1.00% 43 7
Value Fund 1.00% 324 --
Lakefront Fund 1.00% 3 --
Diversified Stock Fund 0.65% 511 --
Stock Index Fund 0.60% 385 370
Growth Fund 1.00% 141 --
Special Value Fund 1.00% 240 --
Ohio Regional Stock Fund 0.75% 34 --
International Growth Fund 1.10% 67 --
Special Growth Fund 1.00% 74 --
</TABLE>
6. Capital Share Transactions:
Transactions in capital shares for the Funds with multiple share classes were
as follows (amounts in thousands):
<TABLE>
<CAPTION>
U.S. Government
Obligations Fund
- ---------------------------------------------------------------------------------------------------------------------------
Six Months Year
Ended Ended
April 30, October 31,
1998 1997<F1>
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Capital and Share Transactions:
Investor Shares:
Proceeds from shares issued $ 490,461 $ 1,096,594
Dividends reinvested 10 9
Cost of shares redeemed (424,292) (640,492)
- ---------------------------------------------------------------------------------------------------------------------------
Total $ 66,179 $ 456,111
Select Shares:
Proceeds from shares issued $ 1,647,778 $ 3,000,667
Dividends reinvested 26,195 30,375
Cost of shares redeemed (1,484,646) (3,153,434)
- ---------------------------------------------------------------------------------------------------------------------------
Total $ 189,327 $ (122,392)
<FN>
<F1> Effective January 8, 1997, the Fund designated the existing shares as
Select Shares and commenced offering Investor Shares.
</FN>
</TABLE>
<TABLE>
<CAPTION>
National Municipal
Bond Fund New York Tax-Free Fund
- ---------------------------------------------------------------------------------------------------------------------------
Six Months Year Six Months Year
Ended Ended Ended Ended
April 30, October 31, April 30, October 31,
1998 1997 1998 1997
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Capital Transactions:
Class A Shares:
Proceeds from shares issued $ 11,299 $ 24,151 $ 4,361 $ 4,570
Dividends reinvested 826 1,600 306 559
Cost of shares redeemed (6,772) (16,416) (2,340) (3,498)
- ---------------------------------------------------------------------------------------------------------------------------
Total $ 5,353 $ 9,335 $ 2,327 $ 1,631
Class B Shares:
Proceeds from shares issued $ 484 $ 545 $ 1,069 $ 585
Dividends reinvested 31 64 65 115
Cost of shares redeemed (569) (204) (294) (476)
- ---------------------------------------------------------------------------------------------------------------------------
Total $ (54) $ 405 $840 $224
Share Transactions:
Class A Shares:
Issued 1,062 2,343 344 362
Reinvested 78 156 24 44
Redeemed (635) (1,596) (185) (277)
- ---------------------------------------------------------------------------------------------------------------------------
Total 505 903 183 129
Class B Shares:
Issued 45 53 84 46
Reinvested 3 6 5 9
Redeemed (54) (20) (23) (37)
- ---------------------------------------------------------------------------------------------------------------------------
Total (6) 39 66 18
</TABLE>
<TABLE>
<CAPTION>
Balanced Fund Diversified Stock Fund Special Value Fund
- ---------------------------------------------------------------------------------------------------------------------------
Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended
April 30, October 31, April 30, October 31, April 30, October 31,
1998 1997 1998 1997 1998 1997
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Capital Transactions:
Class A Shares:
Proceeds from shares issued $ 67,625 $ 75,657 $ 248,897 $ 426,586 $ 52,935 $120,389
Dividends reinvested 21,216 14,836 67,381 71,806 27,213 18,714
Cost of shares redeemed (34,618) (58,208) (158,238) (394,709) (43,093) (67,494)
- ---------------------------------------------------------------------------------------------------------------------------
Total $ 54,223 $ 32,285 $ 158,040 $ 103,683 $ 37,055 $ 71,609
Class B Shares:
Proceeds from shares issued $ 1,084 $ 1,819 $ 10,439 $ 19,901 $ 760 $ 1,117
Dividends reinvested 214 73 3,411 1,122 132 36
Cost of shares redeemed (198) (315) (2,027) (1,815) (152) (35)
- ---------------------------------------------------------------------------------------------------------------------------
Total $ 1,100 $ 1,577 $ 11,823 $ 19,208 $ 740 $ 1,118
Share Transactions:
Class A Shares:
Issued 4,782 5,819 14,038 25,259 3,195 7,776
Reinvested 1,573 1,167 4,064 4,810 1,736 1,357
Redeemed (2,499) (4,438) (9,079) (23,399) (2,595) (4,402)
- ---------------------------------------------------------------------------------------------------------------------------
Total 3,856 2,548 9,023 6,670 2,336 4,731
Class B Shares:
Issued 77 139 593 1,220 47 73
Reinvested 16 6 208 76 8 2
Redeemed (14) (24) (116) (106) (9) (2)
- ---------------------------------------------------------------------------------------------------------------------------
Total 79 121 685 1,190 46 73
</TABLE>
<TABLE>
<CAPTION>
Ohio Regional International
Stock Fund Growth Fund
- ---------------------------------------------------------------------------------------------------------------------------
Six Months Year Six Months Year
Ended Ended Ended Ended
April 30, October 31, April 30, October 31,
1998 1997 1998 1997
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Capital Transactions:
Class A Shares:
Proceeds from shares issued $ 6,529 $ 8,156 $ 72,344 $ 32,789
Dividends reinvested 3,372 869 3,820 2,590
Cost of shares redeemed (7,147) (13,887) (80,275) (53,968)
- ---------------------------------------------------------------------------------------------------------------------------
Total $ 2,754 $ (4,862) $ (4,111) $(18,589)
Class B Shares:
Proceeds from shares issued $ 305 241 27 78
Dividends reinvested 72 8 11 6
Cost of shares redeemed (3) (11) (6) (18)
- ---------------------------------------------------------------------------------------------------------------------------
Total $ 374 $ 238 $ 32 $ 66
Share Transactions:
Class A Shares:
Issued 278 390 5,363 2,427
Reinvested 154 45 310 201
Redeemed (308) (678) (5,946) (3,995)
- ---------------------------------------------------------------------------------------------------------------------------
Total 124 (243) (273) (1,367)
Class B Shares:
Issued 13 12 2 6
Reinvested 4 -- 1 1
Redeemed -- -- -- (1)
- ---------------------------------------------------------------------------------------------------------------------------
Total 17 12 3 6
</TABLE>
7. 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 invest 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 within each of the 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.
<TABLE>
The Victory Portfolios Financial Highlights
- -------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
U.S. Government Obligations Fund
- -------------------------------------------------------------------------------------------------------------------------------
Investor Select
Shares Shares
- -------------------------------------------------------------------------------------------------------------------------------
Six Six
Months Period Months Year
Ended Ended Ended Ended
April 30, October 31, April 30, October 31, Year Ended October 31,
1998 1997<F2> 1998 1997<F2> 1996 1995<F3> 1994 1993
- -------------------------------------------------------------------------------------------------------------------------------
(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 0.025 0.041 0.024 0.047 0.049 0.052 0.032 0.026
Distributions
Net investment
income (0.025) (0.041) (0.024) (0.047) (0.049) (0.052) (0.032) (0.026)
- -------------------------------------------------------------------------------------------------------------------------------
Net Asset Value,
End of Period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
- -------------------------------------------------------------------------------------------------------------------------------
Total Return 2.52%<F4> 4.19%<F4> 2.40%<F4> 4.75% 4.96% 5.38% 3.30% 2.62%
Ratios/Supplemental Data:
Net Assets, End of
Period (000) $522,330 $456,133 $1,424,855 $1,235,475 $1,357,817 $964,929 $412,048 $515,734
Ratio of expenses to
average net assets 0.53%<F5> 0.56%<F5> 0.78%<F5> 0.74% 0.61% 0.58% 0.63% 0.60%
Ratio of net investment
income to average
net assets 5.09%<F5> 4.95%<F5> 4.84%<F5> 4.75% 4.84% 5.28% 3.20% 2.57%
Ratio of expenses to
average net assets<F1> <F6> <F6> <F6> <F6> <F6> 0.60% 0.80% <F6>
Ratio of net investment
income to average
net assets<F1> <F6> <F6> <F6> <F6> <F6> 5.26% 3.03% <F6>
- ---------------
<FN>
<F1> During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratios
would have been as indicated.
<F2> Effective January 8, 1997, the Fund designated the existing shares as Select Shares and commenced offering
Investor Shares.
<F3> 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.
<F4> Not annualized.
<F5> Annualized.
<F6> There were no voluntary fee reductions during the period.
</FN>
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Financial Highlights
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Prime Obligations Fund
- ---------------------------------------------------------------------------------------------------------------------------
Six
Months
Ended
April 30, Year Ended October 31,
1998 1997 1996 1995 1994 1993
- ---------------------------------------------------------------------------------------------------------------------------
(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 0.024 0.048 0.047 0.051 0.035 0.030
Net realized losses from
investment transactions -- -- -- -- (0.003) --
- ---------------------------------------------------------------------------------------------------------------------------
Total from Investment Activities 0.024 0.048 0.047 0.051 0.032 0.030
- ---------------------------------------------------------------------------------------------------------------------------
Distributions
Net investment income (0.024) (0.048) (0.047) (0.051) (0.035) (0.030)
- ---------------------------------------------------------------------------------------------------------------------------
Capital transactions -- -- -- -- 0.003<F2> --
- ---------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
- ---------------------------------------------------------------------------------------------------------------------------
Total Return 2.44%<F3> 4.89% 4.81% 5.26% 3.57% 3.05%
Ratios/Supplemental Data:
Net Assets, End of Period (000) $1,011,558 $736,449 $496,019 $456,266 $782,303 $720,024
Ratio of expenses to average net assets 0.81%<F4> 0.85% 0.87% 0.74% 0.62% 0.60%
Ratio of net investment income to
average net assets 4.92%<F4> 4.79% 4.72% 5.09% 3.52% 2.96%
Ratio of expenses to average net assets<F1> <F5> <F5> <F5> <F5> 0.79% <F5>
Ratio of net investment income to
average net assets<F1> <F5> <F5> <F5> <F5> 3.35% <F5>
- ---------------
<FN>
<F1> During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratios
would have been as indicated.
<F2> During 1994, KeyCorp made a capital contribution of approximately $2,506,000 for losses realized from the disposition
of certain securities.
<F3> Not annualized.
<F4> Annualized.
<F5> There were no voluntary fee reductions during the period.
</FN>
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Financial Highlights
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Financial Reserves Fund
- ---------------------------------------------------------------------------------------------------------------------------
Six
Months
Ended
April 30, Year Ended October 31,
1998 1997 1996 1995<F2> 1994 1993
- ---------------------------------------------------------------------------------------------------------------------------
(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 0.025 0.049 0.049 0.054 0.035 0.030
Distributions
Net investment income (0.025) (0.049) (0.049) (0.054) (0.035) (0.030)
- ---------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
- ---------------------------------------------------------------------------------------------------------------------------
Total Return 2.51%<F3> 5.04% 5.00% 5.50% 3.57% 2.81%
Ratios/Supplemental Data:
Net Assets, End of Period (000) $746,377 $800,642 $767,990 $762,870 $433,266 $457,872
Ratio of expenses to average net assets 0.67%<F4> 0.67% 0.67% 0.60% 0.57% 0.55%
Ratio of net investment income to
average net assets 5.07%<F4> 4.94% 4.89% 5.40% 3.48% 2.78%
Ratio of expenses to average net assets<F1> 0.69%<F4> 0.71% 0.75% 0.76% 0.73% 0.70%
Ratio of net investment income to
average net assets<F1> 5.05%<F4> 4.90% 4.81% 5.24% 3.32% 2.63%
- ---------------
<FN>
<F1> During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratios
would have been as indicated.
<F2> Effective June 5, 1995, the Victory Financial Reserves Portfolio became the Financial Reserves Fund.
<F3> Not annualized.
<F4> Annualized.
</FN>
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Financial Highlights
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Tax-Free Money Market Fund
- ---------------------------------------------------------------------------------------------------------------------------
Six
Months
Ended
April 30, Year Ended October 31,
1998 1997 1996 1995 1994 1993
- ---------------------------------------------------------------------------------------------------------------------------
(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 0.015 0.030 0.030 0.034 0.021 0.020
Distributions
Net investment income (0.015) (0.030) (0.030) (0.034) (0.021) (0.020)
- ---------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
- ---------------------------------------------------------------------------------------------------------------------------
Total Return 1.44%<F2> 3.07% 3.04% 3.42% 2.17% 2.06%
Ratios/Supplemental Data:
Net Assets, End of Period (000) $522,901 $412,224 $344,796 $307,726 $198,561 $189,351
Ratio of expenses to average net assets 0.80%<F3> 0.73% 0.78% 0.61% 0.60% 0.59%
Ratio of net investment income to
average net assets 2.92%<F3> 3.03% 2.97% 3.36% 2.14% 2.04%
Ratio of expenses to average net assets<F1> 0.81%<F3> 0.74% 0.80% 0.62% 0.79% 0.60%
Ratio of net investment income to
average net assets<F1> 2.91%<F3> 3.02% 2.95% 3.35% 1.95% 2.02%
- ---------------
<FN>
<F1> During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratios
would have been as indicated.
<F2> Not annualized.
<F3> Annualized.
</FN>
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Financial Highlights
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Ohio Municipal Money Market Fund
- ---------------------------------------------------------------------------------------------------------------------------
Six Two
Months Months
Ended Ended
April 30, Year Ended October 31, October 31, Year Ended August 31,
1998 1997 1996 1995 1995<F2> 1994 1993
- ---------------------------------------------------------------------------------------------------------------------------
(Unaudited)
<S> <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
- ---------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income 0.015 0.030 0.030 0.006 0.033 0.021 0.021
Distributions
Net investment income (0.015) (0.030) (0.030) (0.006) (0.033) (0.021) (0.021)
- ---------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
- ---------------------------------------------------------------------------------------------------------------------------
Total Return 1.47%<F3> 3.01% 3.11% 0.55%<F3> 3.33% 2.10% 2.14%
Ratios/Supplemental Data:
Net Assets, End of Period (000) $684,168 $650,978 $561,131 $510,632 $502,453 $318,132 $262,681
Ratio of expenses to average
net assets 0.79%<F4> 0.75% 0.67% 0.64%<F4> 0.63% 0.65% 0.65%
Ratio of net investment income
to average net assets 2.95%<F4> 2.97% 3.03% 3.31%<F4> 3.33% 2.08% 2.12%
Ratio of expenses to average
net assets<F1> 0.95%<F4> 0.94% 0.97% 0.92%<F4> 0.94% 0.76% 0.72%
Ratio of net investment income
to average net assets<F1> 2.79%<F4> 2.78% 2.73% 3.03%<F4> 3.02% 1.97% 2.05%
- ---------------
<FN>
<F1> During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratios
would have been as indicated.
<F2> Effective June 5, 1995, the Victory Ohio Municipal Money Market Portfolio became the Ohio Municipal Money Market Fund.
<F3> Not annualized.
<F4> Annualized.
</FN>
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Financial Highlights
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Limited Term Income Fund
- ---------------------------------------------------------------------------------------------------------------------------
Six
Months
Ended
April 30, Year Ended October 31,
1998 1997 1996 1995<F2> 1994 1993
- ---------------------------------------------------------------------------------------------------------------------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 9.94 $ 10.01 $ 10.15 $ 9.88 $ 10.53 $ 10.45
- ---------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income 0.27 0.61 0.63 0.57 0.54 0.57
Net realized and unrealized gains
(losses) from investments (0.02) (0.07) (0.14) 0.27 (0.61) 0.08
- ---------------------------------------------------------------------------------------------------------------------------
Total from Investment Activities 0.25 0.54 0.49 0.84 (0.07) 0.65
- ---------------------------------------------------------------------------------------------------------------------------
Distributions
Net investment income (0.27) (0.61) (0.62) (0.57) (0.54) (0.57)
In excess of net investment income -- -- (0.01) -- -- --
Net realized gains -- -- -- -- (0.04) --
- ---------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.27) (0.61) (0.63) (0.57) (0.58) (0.57)
- ---------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 9.92 $ 9.94 $ 10.01 $ 10.15 $ 9.88 $ 10.53
- ---------------------------------------------------------------------------------------------------------------------------
Total Return (excludes sales charges) 2.57%<F3> 5.57% 4.94% 8.77% (0.66)% 6.39%
Ratios/Supplemental Data:
Net Assets, End of Period (000) $78,487 $81,913 $90,019 $172,002 $79,150 $81,771
Ratio of expenses to average net assets 0.86%<F4> 0.85% 0.86% 0.78% 0.79% 0.77%
Ratio of net investment income to
average net assets 5.58%<F4> 6.06% 5.90% 5.77% 5.29% 5.49%
Ratio of expenses to average net assets<F1> 1.02%<F4> 0.87% 0.89% 0.79% 0.97% 0.78%
Ratio of net investment income to
average net assets<F1> 5.42%<F4> 6.04% 5.87% 5.76% 5.10% 5.48%
Portfolio turnover 66% 139% 221% 97% 41% 50%
- ---------------
<FN>
<F1> During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratios
would have been as indicated.
<F2> 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.
<F3> Not annualized.
<F4> Annualized.
</FN>
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Financial Highlights
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Intermediate Income Fund
- ------------------------------------------------------------------------------------------------------------------------------
Six
Months Year Year Year December 30,
Ended Ended Ended Ended 1993
April 30, October 31, October 31, October 31, to October 31,
1998 1997 1996 1995 1994<F2>
- ------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 9.61 $ 9.56 $ 9.69 $ 9.25 $ 10.00
- ------------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income 0.27 0.56 0.56 0.60 0.52
Net realized and unrealized gains
(losses) from investments 0.01 0.05 (0.13) 0.44 (0.76)
- ------------------------------------------------------------------------------------------------------------------------------
Total from Investment Activities 0.28 0.61 0.43 1.04 (0.24)
- ------------------------------------------------------------------------------------------------------------------------------
Distributions
Net investment income (0.27) (0.56) (0.56) (0.60) (0.51)
- ------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 9.62 $ 9.61 $ 9.56 $ 9.69 $ 9.25
- ------------------------------------------------------------------------------------------------------------------------------
Total Return (excludes sales charges) 2.96%<F3> 6.62% 4.56% 11.65% (2.48)%<F3>
Ratios/Supplemental Data:
Net Assets, End of Period (000) $242,741 $248,841 $272,087 $163,281 $112,923
Ratio of expenses to average net assets 0.96%<F4> 0.96% 0.94% 0.82% 0.79%<F4>
Ratio of net investment income to average net assets 5.68%<F4> 5.87% 5.81% 6.32% 6.23%<F4>
Ratio of expenses to average net assets<F1> 1.23%<F4> 1.09% 1.11% 1.06% 1.25%<F4>
Ratio of net investment income to average
net assets<F1> 5.41%<F4> 5.74% 5.64% 6.08% 5.77%<F4>
Portfolio turnover 120% 195% 164% 98% 55%
- ---------------
<FN>
<F1> During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratios
would have been as indicated.
<F2> Period from commencement of operations.
<F3> Not annualized.
<F4> Annualized.
</FN>
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Financial Highlights
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Fund for Income
- ---------------------------------------------------------------------------------------------------------------------------
Six February 1,
Months 1994 Year
Ended through Ended
April 30, Year Ended October 31, October 31, January 31,
1998 1997 1996 1995<F4> 1994 1993
- ---------------------------------------------------------------------------------------------------------------------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 9.81 $ 9.77 $ 9.93 $ 9.43 $ 10.14 $ 10.57
- ---------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income 0.31 0.68 0.68 0.73 0.52 0.80
Net realized and unrealized gains
(losses) on investments (0.06) 0.03 (0.08) 0.43 (0.71) (0.41)
- ---------------------------------------------------------------------------------------------------------------------------
Total from Investment Activities 0.25 0.71 0.60 1.16 (0.19) 0.39
- ---------------------------------------------------------------------------------------------------------------------------
Distributions
Net investment income (0.31) (0.67) (0.68) (0.66) (0.51) (0.80)
In excess of net
investment income -- -- (0.03) -- (0.01) --
Net realized gains -- -- -- -- -- (0.02)
Tax return of capital -- -- (0.05) -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.31) (0.67) (0.76) (0.66) (0.52) (0.82)
- ---------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 9.75 $ 9.81 $ 9.77 $ 9.93 $ 9.43 $ 10.14
- ---------------------------------------------------------------------------------------------------------------------------
Total Return (excludes sales charges) 2.62%<F2> 7.58% 6.35% 12.75% (1.99)%<F2> 3.75%
Ratios/Supplemental Data:
Net Assets, End of Period (000) $22,730 $22,101 $20,816 $22,756 $29,358 $46,632
Ratio of expenses to average
net assets 1.00%<F3> 0.99% 1.02% 1.12% 1.12%<F3> 1.13%
Ratio of net investment income
to average net assets 6.45%<F3> 6.98% 7.05% 7.62% 7.21%<F3> 7.65%
Ratio of expenses to average
net assets<F1> 1.56%<F3> 1.63% 1.73% 1.58% 1.26%<F3> <F5>
Ratio of net investment income
to average net assets<F1> 5.89%<F3> 6.34% 6.34% 7.16% 7.07%<F3> <F5>
Portfolio turnover 60% 26% 25% 35% 18% 47%
- ---------------
<FN>
<F1> 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.
<F2> Not annualized.
<F3> Annualized.
<F4> Effective June 5, 1995, the Victory Fund For Income Portfolio became the Fund For Income.
<F5> There were no voluntary fee reductions during the period.
</FN>
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Financial Highlights
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Government Mortgage Fund
- ---------------------------------------------------------------------------------------------------------------------------
Six
Months
Ended
April 30, Year Ended October 31,
1998 1997 1996 1995 1994 1993
- ---------------------------------------------------------------------------------------------------------------------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 10.93 $ 10.76 $ 10.86 $ 10.33 $ 11.36 $ 11.07
- ---------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income 0.32 0.69 0.70 0.72 0.68 0.66
Net realized and unrealized gains
(losses) from investments 0.06 0.16 (0.12) 0.62 (1.02) 0.32
- ---------------------------------------------------------------------------------------------------------------------------
Total from Investment Activities 0.38 0.85 0.58 1.34 (0.34) 0.98
- ---------------------------------------------------------------------------------------------------------------------------
Distributions
Net investment income (0.31) (0.68) (0.67) (0.71) (0.67) (0.66)
Net realized gains -- -- -- -- (0.02) (0.03)
In excess of net realized gains -- -- -- (0.08) -- --
Tax return of capital -- -- (0.01) (0.02) -- --
- ---------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.31) (0.68) (0.68) (0.81) (0.69) (0.69)
- ---------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 11.00 $ 10.93 $ 10.76 $ 10.86 $ 10.33 $ 11.36
- ---------------------------------------------------------------------------------------------------------------------------
Total Return (excludes sales charges) 3.54%<F3> 8.22% 5.54% 13.55% (3.01)% 9.05%
Ratios/Supplemental Data:
Net Assets, End of Period (000) $102,279 $103,761 $125,992 $136,103 $148,168 $132,738
Ratio of expenses to average net assets 0.88%<F4> 0.85% 0.89% 0.77% 0.76% 0.75%
Ratio of net investment income
to average net assets 5.85%<F4> 6.32% 6.46% 6.81% 6.38% 5.92%
Ratio of expenses to average net assets<F1> 1.01%<F4> <F2> 0.90% 0.79% 0.96% 0.76%
Ratio of net investment income to
average net assets<F1> 5.72%<F4> <F2> 6.45% 6.80% 6.18% 5.92%
Portfolio turnover 139% 115% 127% 59% 132% 50%
- ---------------
<FN>
<F1> During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratios
would have been as indicated.
<F2> There were no voluntary fee reductions during the period.
<F3> Not annualized.
<F4> Annualized.
</FN>
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Financial Highlights
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Investment Quality Bond Fund
- -----------------------------------------------------------------------------------------------------------------------------
Six
Months Year Year Year December 30,
Ended Ended Ended Ended 1993
April 30, October 31, October 31, October 31, to October 31,
1998 1997<F6> 1996 1995<F5> 1994<F2>
- -----------------------------------------------------------------------------------------------------------------------------
(Unaudited)
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 9.78 $ 9.63 $ 9.76 $ 9.10 $ 10.00
- -----------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income 0.28 0.57 0.57 0.62 0.53
Net realized and unrealized gains
(losses) from investments 0.04 0.14 (0.13) 0.67 (0.92)
- -----------------------------------------------------------------------------------------------------------------------------
Total from Investment Activities 0.32 0.71 0.44 1.29 (0.39)
- -----------------------------------------------------------------------------------------------------------------------------
Distributions
Net investment income (0.28) (0.56) (0.56) (0.62) (0.51)
In excess of net investment income -- -- -- (0.01) --
Tax return of capital -- -- (0.01) -- --
- -----------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 9.82 $ 9.78 $ 9.63 $ 9.76 $ 9.10
- -----------------------------------------------------------------------------------------------------------------------------
Total Return (excludes sales charges) 3.28%<F3> 7.67% 4.65% 14.63% (3.92)%<F3>
Ratios/Supplemental Data:
Net Assets, End of Period (000) $173,453 $181,007 $150,807 $125,248 $94,685
Ratio of expenses to average net assets 1.04%<F4> 1.04% 1.01% 0.88% 0.79%<F4>
Ratio of net investment income to average
net assets 5.71%<F4> 5.90% 5.99% 6.59% 6.33%<F4>
Ratio of expenses to average net assets<F1> 1.28%<F4> 1.17% 1.14% 1.10% 1.25%<F4>
Ratio of net investment income to average
net assets<F1> 5.46%<F4> 5.77% 5.86% 6.37% 5.87%<F4>
Portfolio turnover 219% 249% 182% 160% 90%
- ---------------
<FN>
<F1> During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratios
would have been as indicated.
<F2> Period from commencement of operations.
<F3> Not annualized.
<F4> Annualized.
<F5> 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.
<F6> Effective June 13, 1997, the Victory Government Bond Fund merged into the Investment Quality Bond Fund.
Financial highlights for the periods prior to June 13, 1997 represent the Investment Quality Bond Fund.
</FN>
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Financial Highlights
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
National Municipal Bond Fund
- ------------------------------------------------------------------------------------------------------------------------------
Class A Class B
- ------------------------------------------------------------------------------------------------------------------------------
Six Six Six
Months Year Year Months Year Months Year
Ended Ended Ended Ended Ended Ended Ended
April 30, October 31, October 31, October 31, April 30, April 30, October 31,
1998 1997 1996 1995<F5> 1995<F6> 1998 1997
- ------------------------------------------------------------------------------------------------------------------------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $ 10.51 $ 10.16 $ 10.06 $ 9.59 $ 9.64 $10.51 $10.16
- ------------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income 0.22 0.45 0.44 0.24 0.44 0.16 0.33
Net realized and
unrealized gains (losses)
from investments 0.03 0.35 0.13 0.46 (0.05) 0.03 0.34
- ------------------------------------------------------------------------------------------------------------------------------
Total from
Investment Activities 0.25 0.80 0.57 0.70 0.39 0.19 0.67
- ------------------------------------------------------------------------------------------------------------------------------
Distributions
Net investment income (0.22) (0.45) (0.44) (0.23) (0.44) (0.16) (0.32)
In excess of net
investment income -- -- -- -- -- -- --
In excess of net realized gains -- -- (0.03) -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.22) (0.45) (0.47) (0.23) (0.44) (0.16) (0.32)
- ------------------------------------------------------------------------------------------------------------------------------
Net Asset Value,
End of Period $ 10.54 $ 10.51 $ 10.16 $ 10.06 $ 9.59 $10.54 $10.51
- ------------------------------------------------------------------------------------------------------------------------------
Total Return (excludes
sales charges) 2.34%<F3> 8.10% 5.83% 7.39%<F3> 4.21% 1.78%<F3> 6.74%
Ratios/Supplemental Data:
Net Assets, End of Period (000) $53,155 $47,705 $36,958 $11,964 $5,118 $2,236 $2,288
Ratio of expenses to
average net assets 0.65%<F4> 0.36% 0.29% 0.02%<F4> 0.20% 1.73%<F4> 1.60%
Ratio of net investment income
(loss) to average net assets 4.13%<F4> 4.43% 4.37% 5.11%<F4> 5.01% 3.04%<F4> 3.18%
Ratio of expenses to average
net assets<F1> 1.20%<F4> 1.27% 1.35% 2.57%<F4> 3.95% 2.28%<F4> 2.62%
Ratio of net investment income
to average net assets<F1> 3.58%<F4> 3.52% 3.31% 2.56%<F4> 1.26% 2.49%<F4> 2.16%
Portfolio turnover<F7> 55% 154% 143% 72% 52% 55% 154%
- ---------------
<FN>
<F1> 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.
<F2> Period from commencement of operations.
<F3> Not annualized.
<F4> Annualized.
<F5> Effective June 5, 1995, the Victory National Municipal Bond Portfolio became the National Municipal Bond Fund.
<F6> Effective September 26, 1994, the Fund designated the existing shares as Class A Shares and commenced offering
Class B Shares.
<F7> Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of
shares issued.
</FN>
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Financial Highlights
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
National Municipal Bond Fund
- ------------------------------------------------------------------------------------------------------------------------------
Class B
- ------------------------------------------------------------------------------------------------------------------------------
Six September
Year Months 26, February 3,
Ended Ended 1994 to 1994 to
October 31, October 31, April 30, April 30,
1996 1995<F5> 1995<F6> 1994<F2>
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $10.07 $ 9.59 $ 9.53 $ 10.00
- ------------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income 0.35 0.20 0.28 0.08
Net realized and
unrealized gains (losses)
from investments 0.13 0.47 0.05 (0.36)
- ------------------------------------------------------------------------------------------------------------------------------
Total from
Investment Activities 0.48 0.67 0.33 (0.28)
- ------------------------------------------------------------------------------------------------------------------------------
Distributions
Net investment income (0.35) (0.19) (0.27) (0.08)
In excess of net
investment income (0.01) -- -- --
In excess of net realized gains (0.03) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.39) (0.19) (0.27) (0.08)
- ------------------------------------------------------------------------------------------------------------------------------
Net Asset Value,
End of Period $10.16 $10.07 $ 9.59 $ 9.64
- ------------------------------------------------------------------------------------------------------------------------------
Total Return (excludes
sales charges) 4.85% 6.99%<F3> 3.54%<F3> (2.82)%<F3>
Ratios/Supplemental Data:
Net Assets, End of Period (000) $1,808 $ 456 $ 147 $ 494
Ratio of expenses to
average net assets 1.20% 0.96%<F4> (0.05)%<F4> 0.65%<F4>
Ratio of net investment income
(loss) to average net assets 3.50% 4.15%<F4> 4.35%<F4> 3.15%<F4>
Ratio of expenses to average
net assets<F1> 2.17% 3.67%<F4> 2.63%<F4> 26.10%<F4>
Ratio of net investment income
to average net assets<F1> 2.53% 1.44%<F4> 1.67%<F4> (22.30)%<F4>
Portfolio turnover<F7> 143% 72% 52% 13%
- ---------------
<FN>
<F1> 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.
<F2> Period from commencement of operations.
<F3> Not annualized.
<F4> Annualized.
<F5> Effective June 5, 1995, the Victory National Municipal Bond Portfolio became the National Municipal Bond Fund.
<F6> Effective September 26, 1994, the Fund designated the existing shares as Class A Shares and commenced offering
Class B Shares.
<F7> Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of
shares issued.
</FN>
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Financial Highlights
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
New York Tax-Free Fund
- ---------------------------------------------------------------------------------------------------------------------------
Class A
- ---------------------------------------------------------------------------------------------------------------------------
Six
Months Year Year Year January 1,
Ended Ended Ended Ended 1994 to
April 30, October 31, October 31, October31, October 31,
1998 1997 1996 1995<F4> 1994<F5>
- ---------------------------------------------------------------------------------------------------------------------------
(Unaudited)
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 12.68 $ 12.73 $ 12.85 $ 12.39 $ 13.54
- ---------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income 0.31 0.68 0.68 0.87 0.57
Net realized and unrealized
gains (losses)
from investments (0.12) 0.03 (0.11) 0.42 (1.15)
- ---------------------------------------------------------------------------------------------------------------------------
Total from
Investment Activities 0.19 0.71 0.57 1.29 (0.58)
- ---------------------------------------------------------------------------------------------------------------------------
Distributions
Net investment income (0.31) (0.72) (0.68) (0.83) (0.57)
In excess of net
investment income -- -- -- -- --
Net realized gains (0.02) (0.04) (0.01) -- --
- ---------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.33) (0.76) (0.69) (0.83) (0.57)
- ---------------------------------------------------------------------------------------------------------------------------
Net Asset Value,
End of Period $ 12.54 $ 12.68 $ 12.73 $ 12.85 $ 12.39
- ---------------------------------------------------------------------------------------------------------------------------
Total Return
(excludes sales charges) 1.54%<F2> 5.77% 4.53% 10.82% (4.31)%<F2>
12.34%
Ratios/Supplemental Data:
Net Assets, End of Period (000) $17,450 $15,335 $13,754 $15,374 $17,840
Ratio of expenses to average
net assets 0.94%<F3> 0.94% 0.93% 1.16% 0.91%<F3>
Ratio of net investment income
to average net assets 5.03%<F3> 5.32% 5.25% 5.50% 5.33%<F3>
Ratio of expenses to average
net assets<F1> 1.36%<F3> 1.49% 1.58% 1.96% 1.25%<F3>
Ratio of net investment income
to average net assets<F1> 4.61%<F3> 4.77% 4.60% 4.70% 4.99%<F3>
Portfolio turnover<F7> 18% 11% 0% 18% 18%
- ---------------
<FN>
<F1> 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.
<F2> Not annualized.
<F3> Annualized.
<F4> Effective June 5, 1995, the Victory New York Tax-Free Portfolio became the New York Tax-Free Fund.
<F5> Effective September 26, 1994, the Fund designated the existing shares as
Class A Shares and commenced offering Class B Shares.
<F6> Amount is less than $1,000.
<F7> Portfolio turnover is calculated on the basis of the Fund as a
whole without distinguishing between the classes of shares issued.
</FN>
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Financial Highlights
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
New York Tax-Free Fund
- ---------------------------------------------------------------------------------------------------------------------------
Class B
- ---------------------------------------------------------------------------------------------------------------------------
Six September
Months Year Year Year 26, Year
Ended Ended Ended Ended 1994 to Ended
April 30, October 31, October 31, October 31, October 31, December 31,
1998 1997 1996 1995<F4> 1994<F5> 1993
- ---------------------------------------------------------------------------------------------------------------------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $12.69 $12.74 $12.86 $12.39 $12.62 $ 12.76
- ---------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income 0.26 0.57 0.57 0.85 0.07 0.70
Net realized and unrealized
gains (losses)
from investments (0.14) 0.03 (0.10) 0.36 (0.23) 0.84
- ---------------------------------------------------------------------------------------------------------------------------
Total from
Investment Activities 0.12 0.60 0.47 1.21 (0.16) 1.54
- ---------------------------------------------------------------------------------------------------------------------------
Distributions
Net investment income (0.25) (0.56) (0.57) (0.74) (0.07) (0.70)
In excess of net
investment income -- (0.05) (0.01) -- -- --
Net realized gains (0.02) (0.04) (0.01) -- -- (0.06)
- ---------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.27) (0.65) (0.59) (0.74) (0.07) (0.76)
- ---------------------------------------------------------------------------------------------------------------------------
Net Asset Value,
End of Period $12.54 $12.69 $12.74 $12.86 $12.39 $ 13.54
- ---------------------------------------------------------------------------------------------------------------------------
Total Return
(excludes sales charges) 1.97%<F2> 4.88% 3.72% 10.18% (1.25)%<F2> 12.34%
Ratios/Supplemental Data:
Net Assets, End of Period (000) $3,529 $2,731 $2,515 $1,953 <F6> $28,530
Ratio of expenses to average
net assets 1.91%<F3> 1.82% 1.65% 2.02% 0.52%<F3> 0.87%
Ratio of net investment income
to average net assets 4.05%<F3> 4.46% 4.52% 5.94% 5.94%<F3> 5.28%
Ratio of expenses to average
net assets<F1> 2.33%<F3> 2.68% 2.34% 2.25% 0.86%<F3> 0.96%
Ratio of net investment income
to average net assets<F1> 3.63%<F3> 3.60% 3.83% 5.71% 5.60%<F3> 5.19%
Portfolio turnover<F7> 18% 11% 0% 18% 18% 12%
- ---------------
<FN>
<F1> 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.
<F2> Not annualized.
<F3> Annualized.
<F4> Effective June 5, 1995, the Victory New York Tax-Free Portfolio became the New York Tax-Free Fund.
<F5> Effective September 26, 1994, the Fund designated the existing shares as
Class A Shares and commenced offering Class B Shares.
<F6> Amount is less than $1,000.
<F7> Portfolio turnover is calculated on the basis of the Fund as a
whole without distinguishing between the classes of shares issued.
</FN>
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Financial Highlights
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Ohio Municipal Bond Fund
- ---------------------------------------------------------------------------------------------------------------------------
Six
Months
Ended
April 30, Year Ended October 31,
1998 1997 1996 1995 1994 1993
- ---------------------------------------------------------------------------------------------------------------------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 11.72 $ 11.43 $ 11.32 $ 10.33 $ 11.52 $ 10.52
- ---------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income 0.26 0.53 0.54 0.52 0.49 0.52
Net realized and unrealized gains
(losses) from investments 0.02 0.29 0.11 1.00 (0.94) 1.00
- ---------------------------------------------------------------------------------------------------------------------------
Total from Investment Activities 0.28 0.82 0.65 1.52 (0.45) 1.52
- ---------------------------------------------------------------------------------------------------------------------------
Distributions
Net investment income (0.26) (0.53) (0.54) (0.52) (0.49) (0.52)
In excess of net investment income -- -- -- (0.01)
Net realized gains (0.10) -- -- -- (0.25) --
- ---------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.36) (0.53) (0.54) (0.53) (0.74) (0.52)
- ---------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 11.64 $ 11.72 $ 11.43 $ 11.32 $ 10.33 $ 11.52
- ---------------------------------------------------------------------------------------------------------------------------
Total Return (excludes sales charges) 2.39%<F2> 7.37% 5.87% 15.03% (4.08)% 14.75%
Ratios/Supplemental Data:
Net Assets, End of Period (000) $77,886 $78,043 $73,463 $60,031 $57,704 $50,676
Ratio of expenses to average net assets 0.90%<F3> 0.89% 0.89% 0.66% 0.51% 0.42%
Ratio of net investment income to
average net assets 4.44%<F3> 4.60% 4.72% 4.78% 4.58% 4.77%
Ratio of expenses to average net assets<F1> 1.11%<F3> 0.99% 1.05% 0.94% 1.09% 0.86%
Ratio of net investment income to
average net assets<F1> 4.23%<F3> 4.50% 4.56% 4.49% 4.01% 4.33%
Portfolio turnover 36% 74% 81% 125% 53% 151%
- ---------------
<FN>
<F1> During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratios
would have been as indicated.
<F2> Not annualized.
<F3> Annualized.
</FN>
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Financial Highlights
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Balanced Fund
- --------------------------------------------------------------------------------------------------------------------------------
Class A Shares Class B Shares
- --------------------------------------------------------------------------------------------------------------------------------
Six Six March 1, December 30,
Months Year Year Months Year 1996 Year 1993
Ended Ended Ended Ended Ended through Ended through
April 30, October 31, October 31, April 30, October 31, October 31, October 31, October 31,
1998 1997 1996<F5> 1998 1997 1996<F5> 1995 1994<F2>
- --------------------------------------------------------------------------------------------------------------------------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of
Period $ 13.87 $ 12.33 $ 11.01 $13.88 $12.34 $11.51 $ 9.62 $ 10.00
- --------------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment
income 0.19 0.36 0.36 0.11 0.19 0.14 0.41 0.33
Net realized
and
unrealized
gains
(losses) from
investments
and
foreign
currencies 1.46 1.90 1.39 1.46 1.89 0.85 1.40 (0.39)
- --------------------------------------------------------------------------------------------------------------------------------
Total from
Investment
Activities 1.65 2.26 1.75 1.57 2.08 0.99 1.81 (0.06)
- --------------------------------------------------------------------------------------------------------------------------------
Distributions
Net investment
income (0.20) (0.35) (0.36) (0.12) (0.17) (0.14) (0.41) (0.32)
In excess of
net
investment
income -- -- -- -- -- (0.02) (0.01) --
Net realized
gains (0.74) (0.37) (0.07) (0.74) (0.37) -- --
- --------------------------------------------------------------------------------------------------------------------------------
Total
Distributions (0.94) (0.72) (0.43) (0.86) (0.54) (0.16) (0.42) (0.32)
- --------------------------------------------------------------------------------------------------------------------------------
Net Asset Value,
End of Period $ 14.58 $ 13.87 $ 12.33 $14.59 13.88 12.34 $ 11.01 $ 9.62
- --------------------------------------------------------------------------------------------------------------------------------
Total Return (excludes
sales charges) 12.52%<F3> 19.02% 16.27% 11.90%<F3> 17.43% 15.73%<F6> 19.24% (0.57)%<F3>
Ratios/Supplemental
Data:
Net Assets, End
of Period (000) $416,890 $342,933 $273,553 $4,614 $3,291 $1,432 $201,073 $127,285
Ratio of expenses
to average
net assets 1.26%<F4> 1.25% 1.27% 2.38%<F4> 2.56% 2.46%<F4> 0.98% 0.87%<F4>
Ratio of net investment
income to average
net assets 2.61%<F4> 2.69% 3.14% 1.51%<F4> 1.36% 1.78%<F4> 4.05% 3.97%<F4>
Ratio of expenses to
average net
assets<F1> 1.50%<F4> 1.36% 1.43% 2.63%<F4> 2.95% 2.67%<F4> 1.36% 1.49%<F4>
Ratio of net
investment
income to average
net assets<F1> 2.38%<F4> 2.58% 2.98% 1.26%<F4> 0.97% 1.57%<F4> 3.67% 3.35%<F4>
Portfolio turnover<F7> 96% 109% 80% 96% 109% 80% 69% 118%
- ---------------
<FN>
<F1> 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.
<F2> Period from commencement of operations.
<F3> Not annualized.
<F4> Annualized.
<F5> Effective March 1, 1996, the Fund designated the existing shares as Class A Shares and commenced offering Class B Shares.
<F6> Represents total return for the Fund for the period November 1, 1995 through February 29, 1996 plus total return
for Class B Shares for the period March 1, 1996 through October 31, 1996. The total return for the Class B Shares
for the period from March 1, 1996 through October 31, 1996 was 8.72%.
<F7> Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
</FN>
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Financial Highlights
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Convertible Securities Fund
- ---------------------------------------------------------------------------------------------------------------------------
Five
Months
Ended
April 30, Fiscal Year Ended November 30,
1998<F2> 1997 1996 1995 1994 1993
- ---------------------------------------------------------------------------------------------------------------------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 14.33 $ 13.55 $ 12.16 $ 11.05 $ 12.48 $ 10.98
- ---------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income 0.27 0.62 0.65 0.60 0.61 0.57
Net realized and unrealized gains
(losses) from investments 0.73 1.43 1.68 1.50 (1.12) 1.79
- ---------------------------------------------------------------------------------------------------------------------------
Total from Investment Activities 1.00 2.05 2.33 2.10 (0.51) 2.36
- ---------------------------------------------------------------------------------------------------------------------------
Distributions
Net investment income (0.25) (0.65) (0.62) (0.61) (0.61) (0.57)
Net realized gains (1.07) (0.62) (0.32) (0.38) (0.31) (0.29)
- ---------------------------------------------------------------------------------------------------------------------------
Total Distributions (1.32) (1.27) (0.94) (0.99) (0.92) (0.86)
- ---------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 14.01 $ 14.33 $ 13.55 $ 12.16 $ 11.05 $ 12.48
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (000) 7.67%<F3> 16.26% 20.28% 20.43% (4.36)% 22.42%
Ratios/Supplemental Data:
Net Assets, End of Period (000) $122,148 $104,982 $81,478 $68,212 $58,845 $64,537
Ratio of expenses to average net assets 1.20%<F4> 1.34% 1.31% 1.31% 1.30% 1.24%
Ratio of net investment income to
average net assets 4.72%<F4> 4.75% 5.17% 5.36% 5.20% 4.75%
Ratio of expenses to average net assets<F1> <F5> <F5> <F5> <F5> <F5> <F5>
Ratio of net investment income to
average net assets<F1> <F5> <F5> <F5> <F5> <F5> <F5>
Portfolio turnover 35% 77% 40% 52% 49% 30%
- ---------------
<FN>
<F1> During the period, certain fees were voluntarily reduced and/or reimbursed. If such voluntary fee reductions and/or
expense reimbursements had not occurred, the ratios would have been as indicated.
<F2> Effective March 23, 1998, the SBSF Convertible Securities Fund became the Victory Convertible Securities Fund.
Financial highlights prior to March 23, 1998 represent the SBSF Convertible Securities Fund.
<F3> Not annualized.
<F4> Annualized.
<F5> There were no voluntary fee reductions during the period.
</FN>
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Financial Highlights
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Real Estate Investment Fund
- ---------------------------------------------------------------------------------------------------------------------------
Six April 30,
Months 1997
Ended Through
April 30, October 31,
1998 1997<F3>
- ---------------------------------------------------------------------------------------------------------------------------
(Unaudited)
<S> <C> <C>
Net Asset Value, Beginning of Period $ 12.07 $ 10.00
- ---------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income 0.30<F2> 0.23
Net realized and unrealized gains
(losses) from investments (0.07) 2.01
- ---------------------------------------------------------------------------------------------------------------------------
Total from Investment Activities $ 0.23 $ 2.24
Distributions
Net investment income (0.21) (0.17)
Net realized gains (0.04) --
- ---------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.25) (0.17)
- ---------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 12.05 $ 12.07
- ---------------------------------------------------------------------------------------------------------------------------
Total Return (excludes sales charges) 1.88%<F4> 22.42%<F4>
Ratios/Supplemental Data:
Net Assets, End of Period (000) $13,668 $ 4,376
Ratio of expenses to average net assets 0.32%<F5> 0.00%<F5>
Ratio of net investment income
to average net assets 4.94%<F5> 5.11%<F5>
Ratio of expenses to average net assets<F1> 1.93%<F5> 2.93%<F5>
Ratio of net investment income
to average net assets<F1> 3.33%<F5> 2.18%<F5>
Portfolio turnover 37% 21%
- ---------------
<FN>
<F1> 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.
<F2> Calculated using average shares for the period.
<F3> Period from commencement of operations.
<F4> Not annualized.
<F5> Annualized.
</FN>
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Financial Highlights
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Value Fund
- ---------------------------------------------------------------------------------------------------------------------------
Six
Months Year Year Year December 3,
Ended Ended Ended Ended 1993
April 30, October 31, October 31, October 31, to October 31,
1998 1997 1996 1995<F5> 1994<F2>
- ---------------------------------------------------------------------------------------------------------------------------
(Unaudited)
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 17.07 $ 14.18 $ 11.87 $ 10.13 $ 10.00
- ---------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income 0.05 0.15 0.20 0.27 0.21
Net realized and unrealized gains
from investments 3.18 3.57 2.65 1.92 0.11
- ---------------------------------------------------------------------------------------------------------------------------
Total from Investment Activities 3.23 3.72 2.85 2.19 0.32
- ---------------------------------------------------------------------------------------------------------------------------
Distributions
Net investment income (0.06) (0.16) (0.20) (0.27) (0.19)
In excess of net investment income -- -- -- (0.01) --
Net realized gains (1.41) (0.67) (0.34) (0.17) --
- ---------------------------------------------------------------------------------------------------------------------------
Total Distributions (1.47) (0.83) (0.54) (0.45) (0.19)
- ---------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 18.83 $ 17.07 $ 14.18 $ 11.87 $ 10.13
- ---------------------------------------------------------------------------------------------------------------------------
Total Return (excludes sales charges) 20.32%<F3> 27.24% 24.66% 22.28% 3.27%<F3>
Ratios/Supplemental Data:
Net Assets, End of Period (000) $542,497 $472,047 $382,083 $295,871 $188,184
Ratio of expenses to average net assets 1.33%<F4> 1.32% 1.33% 0.99% 0.92%<F4>
Ratio of net investment income to
average net assets 0.65%<F4> 0.93% 1.56% 2.55% 2.32%<F4>
Ratio of expenses to average net assets<F1> 1.46%<F4> <F6> 1.35% 1.30% 1.48%<F4>
Ratio of net investment income to average
net assets<F1> 0.52%<F4> <F6> 1.54% 2.24% 1.76%<F4>
Portfolio turnover 18% 25% 28% 23% 39%
- ---------------
<FN>
<F1> During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratios
would have been as indicated.
<F2> Period from commencement of operations.
<F3> Not annualized.
<F4> Annualized.
<F5> 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.
<F6> There were no voluntary fee reductions during the period.
</FN>
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Financial Highlights
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Lakefront Fund
- ---------------------------------------------------------------------------------------------------------------------------
Six March 3,
Months 1997
Ended through
April 30, October 31,
1998 1997<F2>
- ---------------------------------------------------------------------------------------------------------------------------
(Unaudited)
<S> <C> <C>
Net Asset Value, Beginning of Period $ 11.29 $ 10.00
- ---------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income 0.07 0.12
Net realized and unrealized gains
(losses) from investments 1.87 1.27
- ---------------------------------------------------------------------------------------------------------------------------
Total from Investment Activities $ 1.94 $ 1.39
Distributions
Net investment income (0.08) (0.10)
Net realized gains (0.19) --
- ---------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.27) (0.10)
- ---------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 12.96 $ 11.29
- ---------------------------------------------------------------------------------------------------------------------------
Total Return (excludes sales charges) 17.51%<F3> 13.87%<F3>
Ratios/Supplemental Data:
Net Assets, End of Period (000) $ 1,485 $ 1,255
Ratio of expenses to average net assets 0.16%<F4> 0.00%<F4>
Ratio of net investment income
to average net assets 1.21%<F4> 1.67%<F4>
Ratio of expenses to average net assets<F1> 5.34%<F4> 7.27%<F4>
Ratio of net investment income
to average net assets<F1> (3.98)%<F4> (5.60)%<F4>
Portfolio turnover 17% 36%
- ---------------
<FN>
<F1> 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.
<F2> Period from commencement of operations.
<F3> Not annualized.
<F4> Annualized.
</FN>
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Financial Highlights
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Diversified Stock Fund
- ---------------------------------------------------------------------------------------------------------------------------
Class A Shares Class B Shares
- ---------------------------------------------------------------------------------------------------------------------------
Six Six March 1,
Months Year Year Months Year 1996
Ended Ended Ended Ended Ended through
April 30, October 31, October 31, April 30, October 31, October 31,
1998 1997 1996<F2> 1998 1997 1996<F2>
- ---------------------------------------------------------------------------------------------------------------------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $ 17.76 $ 15.75 $ 13.62 $ 17.62 $ 15.71 $ 14.18
- ---------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income (loss) 0.05 0.16 0.20 (0.01) (0.06) 0.07
Net realized and unrealized
gains (losses) from
investments 3.44 3.84 3.21 3.38 3.85 1.57
- ---------------------------------------------------------------------------------------------------------------------------
Total from
Investment Activities 3.49 4.00 3.41 3.37 3.79 1.64
- ---------------------------------------------------------------------------------------------------------------------------
Distributions
Net investment income (0.05) (0.16) (0.19) -- -- (0.07)
In excess of net
investment income -- -- -- -- (0.05) (0.04)
Net realized gains (1.98) (1.83) (1.09) (1.98) (1.83) --
- ---------------------------------------------------------------------------------------------------------------------------
Total Distributions (2.03) (1.99) (1.28) (1.98) (1.88) (0.11)
- ---------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 19.22 $ 17.76 $ 15.75 $ 19.01 $ 17.62 $ 15.71
- ---------------------------------------------------------------------------------------------------------------------------
Total Return (excludes
sales charges) 21.55%<F3> 27.96% 27.16% 20.94%<F3> 26.48% 26.61%<F5>
Ratios/Supplemental Data:
Net Assets, End of Period (000) $998,346 $762,270 $571,153 $45,603 $30,198 $ 8,228
Ratio of expenses to average
net assets 1.01%<F4> 1.03% 1.05% 2.02%<F4> 2.19% 2.07%<F4>
Ratio of net investment income
to average net assets 6.60%<F4> 0.97% 1.40% (0.35)%<F4> (0.29)% 0.11%<F4>
Ratio of expenses to average
net assets<F1> 1.13%<F4> <F7> 1.08% 2.14%<F4> <F7> 2.08%<F4>
Ratio of net investment income
to average net assets<F1> 0.54%<F4> <F7> 1.37% (0.47)%<F4> <F7> 0.10%<F4>
Portfolio turnover<F6> 32% 63% 94% 32% 63% 94%
- ---------------
<FN>
<F1> During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratios
would have been as indicated.
<F2> Effective March 1, 1996, the Fund designated the existing shares as Class A Shares and commenced offering Class B Shares.
<F3> Not annualized.
<F4> Annualized.
<F5> Represents total return for the Fund for the period November 1, 1995 through February 29, 1996 plus total return
for Class B Shares for the period March 1, 1996 through October 31, 1996. The total return for the Class B shares
for the period from March 1, 1996 through October 31, 1996 was 11.62%.
<F6> Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes
of shares issued.
<F7> There were no voluntary fee reductions during the period.
</FN>
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Financial Highlights
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Diversified Stock Fund
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Year Ended October 31,
1995 1994 1993
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net Asset Value,
Beginning of Period $ 12.68 $ 13.39 $ 12.16
- ---------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income (loss) 0.27 0.25 0.18
Net realized and unrealized
gains (losses) from investments 2.33 0.64 1.50
- ---------------------------------------------------------------------------------------------------------------------------
Total from
Investment Activities 2.60 0.89 1.68
- ---------------------------------------------------------------------------------------------------------------------------
Distributions
Net investment income (0.27) (0.23) (0.21)
In excess of net
investment income (0.01) --
Net realized gains (1.38) (1.37) (0.24)
- ---------------------------------------------------------------------------------------------------------------------------
Total Distributions (1.66) (1.60) (0.45)
- ---------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 13.62 $ 12.68 $ 13.39
- ---------------------------------------------------------------------------------------------------------------------------
Total Return (excludes
sales charges) 23.54% 7.39% 14.04%
Ratios/Supplemental Data:
Net Assets, End of Period (000) $409,549 $263,227 $257,405
Ratio of expenses to average
net assets 0.92% 0.89% 0.89%
Ratio of net investment income
to average net assets 2.11% 2.06% 1.45%
Ratio of expenses to average
net assets<F1> 0.95% 1.10% 0.90%
Ratio of net investment income
to average net assets<F1> 2.07% 1.86% 1.43%
Portfolio turnover<F6> 75% 104% 86%
- ---------------
<FN>
<F1> During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratios
would have been as indicated.
<F2> Effective March 1, 1996, the Fund designated the existing shares as Class A Shares and commenced offering Class B Shares.
<F3> Not annualized.
<F4> Annualized.
<F5> Represents total return for the Fund for the period November 1, 1995 through February 29, 1996 plus total return
for Class B Shares for the period March 1, 1996 through October 31, 1996. The total return for the Class B shares
for the period from March 1, 1996 through October 31, 1996 was 11.62%.
<F6> Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes
of shares issued.
<F7> There were no voluntary fee reductions during the period.
</FN>
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Financial Highlights
- ----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Stock Index Fund
- ----------------------------------------------------------------------------------------------------------------------------
Six Months Year Year Year December 3,
Ended Ended Ended Ended 1993
April 30, October 31, October 31, October 31, to October 31,
1998 1997 1996 1995 1994<F2>
- ----------------------------------------------------------------------------------------------------------------------------
(Unaudited)
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 18.75 $ 14.85 $ 12.50 $ 10.18 $ 10.00
- ----------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income 0.15 0.29 0.28 0.27 0.20
Net realized and unrealized gains (losses)
from investments and foreign currencies 3.73 4.23 2.58 2.31 0.16
- ----------------------------------------------------------------------------------------------------------------------------
Total from Investment Activities 3.88 4.52 2.86 2.58 0.36
- ----------------------------------------------------------------------------------------------------------------------------
Distributions
Net investment income (0.15) (0.29) (0.28) (0.26) (0.18)
Net realized gains (1.10) (0.33) (0.23) -- --
- ----------------------------------------------------------------------------------------------------------------------------
Total Distributions (1.25) (0.62) (0.51) (0.26) (0.18)
- ----------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 21.38 $ 18.75 $ 14.85 $ 12.50 $ 10.18
- ----------------------------------------------------------------------------------------------------------------------------
Total Return (excludes sales charges) 21.80%<F3> 31.16% 23.38% 25.72% 3.66%<F3>
Ratios/Supplemental Data:
Net Assets, End of Period (000) $652,406 $465,015 $277,124 $160,822 $89,686
Ratio of expenses to average net assets 0.56%<F4> 0.56% 0.57% 0.55% 0.58%<F4>
Ratio of net investment income to average net assets 1.67%<F4> 1.74% 2.14% 2.53% 2.35%<F4>
Ratio of expenses to average net assets<F1> 0.84%<F4> 0.86% 0.89% 0.87% 1.10%<F4>
Ratio of net investment income to average net assets<F1> 1.39%<F4> 1.44% 1.82% 2.21% 1.82%<F4>
Portfolio turnover 10% 11% 4% 12% 1%
- ---------------
<FN>
<F1> During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratios
would have been as indicated.
<F2> Period from commencement of operations.
<F3> Not annualized.
<F4> Annualized.
</FN>
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Financial Highlights
- -------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Growth Fund
- -------------------------------------------------------------------------------------------------------------------------------
Six
Months Year Year Year December 3,
Ended Ended Ended Ended 1993
April 30, October 31, October 31, October 31, to October 31,
1998 1997 1996 1995<F5> 1994<F2><F6>
- -------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 18.01 $ 14.57 $ 12.15 $ 10.23 $ 10.00
- -------------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income (loss) (0.01) 0.03 0.08 0.11 0.10
Net realized and unrealized gains
(losses) on investments 3.91 4.07 2.93 1.97 0.22
- -------------------------------------------------------------------------------------------------------------------------------
Total from Investment Activities 3.90 4.10 3.01 2.08 0.32
- -------------------------------------------------------------------------------------------------------------------------------
Distributions
Net investment income -- (0.04) (0.08) (0.11) (0.09)
Net realized gains (1.24) (0.62) (0.51) (0.05) --
- -------------------------------------------------------------------------------------------------------------------------------
Total Distributions (1.24) (0.66) (0.59) (0.16) (0.09)
- -------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 20.67 $ 18.01 $ 14.57 $ 12.15 $ 10.23
- -------------------------------------------------------------------------------------------------------------------------------
Total Return (excludes sales charges) 22.94%<F3> 29.08% 25.66% 20.54% 3.22%<F3>
Ratios/Supplemental Data:
Net Assets, End of Period (000) $231,479 $185,533 $147,753 $108,253 $66,921
Ratio of expenses to average net assets 1.35%<F4> 1.34% 1.33% 1.07% 0.94%<F4>
Ratio of net investment income to average net assets (0.07)%<F4> 0.19% 0.64% 1.00% 1.10%<F4>
Ratio of expenses to average net assets<F1> 1.49%<F4> <F7> 1.39% 1.42% 1.51%<F4>
Ratio of net investment income to average net assets<F1> (0.21)%<F4> <F7> 0.58% 0.65% 0.52%<F4>
Portfolio turnover 18% 21% 27% 107% 28%
- ---------------
<FN>
<F1> During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratios
would have been as indicated.
<F2> Period from commencement of operations.
<F3> Not annualized.
<F4> Annualized.
<F5> 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.
<F6> 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.
<F7> There were no voluntary fee reductions during the period.
</FN>
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Financial Highlights
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Special Value Fund
- ---------------------------------------------------------------------------------------------------------------------------
Class A Shares Class B Shares
- ---------------------------------------------------------------------------------------------------------------------------
March 1,
Six Months Year Year Six Months Year 1996
Ended Ended Ended Ended Ended through
April 30, October 31, October 31, April 30, October 31, October 31,
1998 1997 1996<F5> 1998 1997 1996<F5>
- ---------------------------------------------------------------------------------------------------------------------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 16.68 $ 14.15 $ 12.15 $16.49 $14.09 $12.89
- ---------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income (loss) 0.04 0.10 0.12 (0.03) (0.04) 0.01
Net realized and unrealized
gains on investments 1.81 3.50 2.33 1.75 3.41 1.23
- ---------------------------------------------------------------------------------------------------------------------------
Total from Investment Activities 1.85 3.60 2.45 1.72 3.37 1.24
- ---------------------------------------------------------------------------------------------------------------------------
Distributions
Net investment income (0.04) (0.12) (0.11) -- -- (0.01)
In excess of net investment income -- -- -- -- (0.02) (0.03)
Net realized gains (1.25) (0.95) (0.34) (1.25) (0.95) --
- ---------------------------------------------------------------------------------------------------------------------------
Total Distributions (1.29) (1.07) (0.45) (1.25) (0.97) (0.04)
- ---------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 17.24 $ 16.68 $ 14.15 $16.96 $16.49 $14.09
- ---------------------------------------------------------------------------------------------------------------------------
Total Return (excludes sales charges) 11.86%<F3> 27.05% 20.60% 11.14%<F3> 25.41% 19.80%<F6>
Ratios/Supplemental Data:
Net Assets, End of Period (000) $474,526 $420,020 $289,460 $2,484 $1,660 $ 386
Ratio of expenses to average net assets 1.39%<F4> 1.37% 1.37% 2.64%<F4> 2.66% 2.51%<F4>
Ratio of net investment income
(loss) to average net assets 0.49%<F4> 0.65% 0.88% (0.75)%<F4> (0.62)% (0.31)%<F4>
Ratio of expenses to average net assets<F1> 1.50%<F4> 1.37% 1.40% 2.77%<F4> 3.63% 3.75%<F4>
Ratio of net investment income
(loss) to average net assets<F1> 0.38%<F4> 0.65% 0.85% (0.88)%<F4> (1.59)% (1.55)%<F4>
Portfolio turnover<F7> 16% 39% 55% 16% 39% 55%
- ---------------
<FN>
<F1> 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.
<F2> Period from commencement of operations.
<F3> Not annualized.
<F4> Annualized.
<F5> Effective March 1, 1996, the Fund designated the existing shares as Class A Shares and commenced offering
Class B Shares.
<F6> Represents total return for the Fund for the period November 1, 1995 through February 29, 1996 plus total return
for Class B Shares for the Period March 1, 1996 through October 31, 1996.
<F7> Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes
of shares issued.
</FN>
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Financial Highlights
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Special Value Fund
- ---------------------------------------------------------------------------------------------------------------------------
December 3,
Year 1993
Ended through
October 31, October 31,
1995 1994<F2>
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net Asset Value, Beginning of Period $ 10.49 $ 10.00
- ---------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income (loss) 0.15 0.11
Net realized and unrealized
gains on investments 1.71 0.48
- ---------------------------------------------------------------------------------------------------------------------------
Total from Investment Activities 1.86 0.59
- ---------------------------------------------------------------------------------------------------------------------------
Distributions
Net investment income (0.15) (0.10)
In excess of net investment income -- --
Net realized gains (0.05) --
- ---------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.20) (0.10)
- ---------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 12.15 $ 10.49
- ---------------------------------------------------------------------------------------------------------------------------
Total Return (excludes sales charges) 18.01% 5.92%<F3>
Ratios/Supplemental Data:
Net Assets, End of Period (000) $194,700 $118,600
Ratio of expenses to average net assets 1.04% 1.00%<F4>
Ratio of net investment income
(loss) to average net assets 1.35% 1.23%<F4>
Ratio of expenses to average net assets<F1> 1.30% 1.49%<F4>
Ratio of net investment income
(loss) to average net assets<F1> 1.09% 0.74%<F4>
Portfolio turnover<F7> 39% 18%
- ---------------
<FN>
<F1> 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.
<F2> Period from commencement of operations.
<F3> Not annualized.
<F4> Annualized.
<F5> Effective March 1, 1996, the Fund designated the existing shares as Class A Shares and commenced offering
Class B Shares.
<F6> Represents total return for the Fund for the period November 1, 1995 through February 29, 1996 plus total return
for Class B Shares for the Period March 1, 1996 through October 31, 1996.
<F7> Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes
of shares issued.
</FN>
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Financial Highlights
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Ohio Regional Stock Fund
- ---------------------------------------------------------------------------------------------------------------------------
Class A Shares Class B Shares
- ---------------------------------------------------------------------------------------------------------------------------
Six Six March 1,
Months Year Year Months Year 1996
Ended Ended Ended Ended Ended through
April 30, October 31, October 31, April 30, October 31, October 31,
1998 1997 1996<F2> 1998 1997 1996<F2>
- ---------------------------------------------------------------------------------------------------------------------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $ 23.56 $ 17.95 $ 15.94 $23.28 $17.87 $16.43
- ---------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income (loss) 0.08 0.14 0.14 (0.07) (0.14) (0.03)
Net realized and
unrealized gains
from investments 2.69 5.96 2.62 2.66 5.90 1.51
- ---------------------------------------------------------------------------------------------------------------------------
Total from
Investment Activities 2.77 6.10 2.76 2.59 5.76 1.48
- ---------------------------------------------------------------------------------------------------------------------------
Distributions
Net investment income (0.08) (0.14) (0.14) -- -- --
In excess of net
investment income -- -- -- -- -- (0.04)
Net realized gains (2.10) (0.35) (0.36) (2.10) (0.35) --
In excess of net
realized gains -- -- (0.25) -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Total Distributions (2.18) (0.49) (0.75) (2.10) (0.35) (0.04)
- ---------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 24.15 $ 23.56 $ 17.95 $23.77 $23.28 $17.87
- ---------------------------------------------------------------------------------------------------------------------------
Total Return
(excludes sales charges) 12.72%<F4> 34.61% 17.79% 12.03%<F4> 32.71% 16.95%<F3>
Ratios/Supplemental Data:
Net Assets, End of Period (000) $58,055 $53,703 $45,294 $1,107 $ 705 $ 326
Ratio of expenses to
average net assets 1.24%<F5> 1.26% 1.39% 2.50%<F5> 2.65% 2.61%<F5>
Ratio of net investment
income (loss) to
average net assets 0.69%<F5> 0.67% 0.79% (0.63)%<F5> (0.76)% (0.60)%<F5>
Ratio of expenses to
average net assets<F1> 1.36%<F5> 1.26% 1.40% 3.38%<F5> 4.25% 3.50%<F5>
Ratio of net investment
income (loss) to average
net assets<F1> 0.58%<F5> 0.67% 0.78% (1.51)%<F5> (2.36)% (1.49)%<F5>
Portfolio turnover<F6> 3% 8% 6% 3% 8% 6%
- ---------------
<FN>
<F1> 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.
<F2> Effective March 1, 1996, the Fund designated the existing shares as Class A Shares and commenced offering
Class B Shares.
<F3> Represents total return for the Fund for the period November 1, 1995 through February 29, 1996 plus total return
for Class B Shares for the period March 1, 1996 through October 31, 1996. The total return for the Class B shares
for the period from March 1, 1996 through October 31, 1996 was 9.03%.
<F4> Not annualized.
<F5> Annualized.
<F6> Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes
of shares issued.
</FN>
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Financial Highlights
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Ohio Regional Stock Fund
- ---------------------------------------------------------------------------------------------------------------------------
Year Ended October 31,
1995 1994 1993
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net Asset Value,
Beginning of Period $ 14.56 $ 14.69 $ 12.12
- ---------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income (loss) 0.17 0.18 0.16
Net realized and
unrealized gains
from investments 2.13 0.39 2.63
- ---------------------------------------------------------------------------------------------------------------------------
Total from
Investment Activities 2.30 0.57 2.79
- ---------------------------------------------------------------------------------------------------------------------------
Distributions
Net investment income (0.17) (0.17) (0.18)
In excess of net
investment income (0.01) -- --
Net realized gains (0.65) (0.53) (0.04)
In excess of net
realized gains (0.09) -- --
- ---------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.92) (0.70) (0.22)
- ---------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 15.94 $ 14.56 $ 14.69
- ---------------------------------------------------------------------------------------------------------------------------
Total Return
(excludes sales charges) 16.93% 3.96% 23.16%
Ratios/Supplemental Data:
Net Assets, End of Period (000) $39,048 $33,965 $34,926
Ratio of expenses to
average net assets 1.20% 1.04% 1.04%
Ratio of net investment
income (loss) to
average net assets 1.13% 1.27% 1.17%
Ratio of expenses to
average net assets<F1> 1.24% 1.27% 1.06%
Ratio of net investment
income (loss) to average
net assets<F1> 1.09% 1.04% 1.15%
Portfolio turnover<F6> 11% 14% 7%
- ---------------
<FN>
<F1> 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.
<F2> Effective March 1, 1996, the Fund designated the existing shares as Class A Shares and commenced offering
Class B Shares.
<F3> Represents total return for the Fund for the period November 1, 1995 through February 29, 1996 plus total return
for Class B Shares for the period March 1, 1996 through October 31, 1996. The total return for the Class B shares
for the period from March 1, 1996 through October 31, 1996 was 9.03%.
<F4> Not annualized.
<F5> Annualized.
<F6> Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes
of shares issued.
</FN>
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Financial Highlights
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
International Growth Fund
- ---------------------------------------------------------------------------------------------------------------------------
Class A Shares Class B Shares
- ---------------------------------------------------------------------------------------------------------------------------
Six Six March 1,
Months Year Year Months Year 1996
Ended Ended Ended Ended Ended through
April 30, October 31, October 31, April 30, October 31, October 31,
1998 1997 1996<F2> 1998 1997 1996<F2>
- ---------------------------------------------------------------------------------------------------------------------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $ 13.31 $ 13.01 $ 12.33 $13.07 $12.93 $12.79
- ---------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income (loss) 0.03 0.09 0.08 (0.05) (0.06) --
Net realized and unrealized
gains (losses) from investments
and foreign currencies 2.05 0.67 0.62 2.00 0.65 0.14
- ---------------------------------------------------------------------------------------------------------------------------
Total from
Investment Activities 2.08 0.76 0.70 1.95 0.59 0.14
- ---------------------------------------------------------------------------------------------------------------------------
Distributions
Net investment income (0.01) (0.01) (0.02) -- -- --
Net realized gains (0.78) (0.45) -- (0.78) (0.45) --
Tax return of capital -- -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.79) (0.46) (0.02) (0.78) (0.45) --
- ---------------------------------------------------------------------------------------------------------------------------
Net Asset Value,
End of Period $ 14.60 $ 13.31 $ 13.01 $14.24 $13.07 $12.93
- ---------------------------------------------------------------------------------------------------------------------------
Total Return
(excludes sales charges) 16.72%<F5> 6.04% 5.65% 16.01%<F5> 4.68% 4.89%(c)
Ratios/Supplemental Data:
Net Assets, End of Period (000) $112,476 $106,189 $121,517 $ 235 $ 184 $ 118
Ratio of expenses to
average net assets 1.69%<F6> 1.69% 1.73% 2.95%<F6> 3.07% 2.91%<F6>
Ratio of net investment
income (loss) to average
net assets 0.43%<F6> 0.63% 0.64% (0.79)%<F6> (0.68)% (0.10)%<F6>
Ratio of expenses to
average net assets* 1.82%<F6> 1.69% 1.75% 6.61%<F6> 10.01% 6.46%<F6>
Ratio of net investment
income (loss) to average
net assets<F1> 0.30%<F6> 0.63% 0.62% (4.45)%<F6> (7.62)% (3.65)%<F6>
Portfolio turnover<F7> 41% 116% 178% 41% 116% 178%
- ---------------
<FN>
<F1> 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.
<F2> Effective March 1, 1996, the Fund designated the existing shares as Class A Shares and commenced offering Class B Shares.
<F3> 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.
<F4> Represents total return for the Fund for the period November 1, 1995 through February 29, 1996 plus total return for
Class B Shares for the period March 1, 1996 through October 31, 1996. The total return for the Class B shares for
the period from March 1, 1996 through October 31, 1996 was 1.11%.
<F5> Not annualized.
<F6> Annualized.
<F7> Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes
of shares issued.
</FN>
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Financial Highlights
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
International Growth Fund
- ---------------------------------------------------------------------------------------------------------------------------
Year Ended October 31,
1995<F3> 1994 1993
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net Asset Value,
Beginning of Period $ 13.32 $ 11.93 $ 8.93
- ---------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income (loss) 0.05 (0.01) (0.03)
Net realized and unrealized
gains (losses) from investments
and foreign currencies (0.42) 1.40 3.03
- ---------------------------------------------------------------------------------------------------------------------------
Total from
Investment Activities (0.37) 1.39 3.00
- ---------------------------------------------------------------------------------------------------------------------------
Distributions
Net investment income -- -- --
Net realized gains (0.55) -- --
Tax return of capital (0.07) -- --
- ---------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.62) -- --
- ---------------------------------------------------------------------------------------------------------------------------
Net Asset Value,
End of Period $ 12.33 $ 13.32 $ 11.93
- ---------------------------------------------------------------------------------------------------------------------------
Total Return
(excludes sales charges) (2.50)% (11.65)% 33.59%
Ratios/Supplemental Data:
Net Assets, End of Period (000) $106,477 $81,307 $30,629
Ratio of expenses to
average net assets 1.53% 1.48% 1.46%
Ratio of net investment
income (loss) to average
net assets 0.75% (0.51)% (0.74)%
Ratio of expenses to
average net assets* 1.65% 1.83% 1.63%
Ratio of net investment
income (loss) to average
net assets<F1> 0.63% (0.86)% (0.91)%
Portfolio turnover<F7> 68% 51% 45%
- ---------------
<FN>
<F1> 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.
<F2> Effective March 1, 1996, the Fund designated the existing shares as Class A Shares and commenced offering Class B Shares.
<F3> 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.
<F4> Represents total return for the Fund for the period November 1, 1995 through February 29, 1996 plus total return for
Class B Shares for the period March 1, 1996 through October 31, 1996. The total return for the Class B shares for
the period from March 1, 1996 through October 31, 1996 was 1.11%.
<F5> Not annualized.
<F6> Annualized.
<F7> Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes
of shares issued.
</FN>
</TABLE>
See notes to financial statements.
<TABLE>
The Victory Portfolios Financial Highlights
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Special Growth Fund
- --------------------------------------------------------------------------------------------------------------------------------
Six Months Year Year Six Months Year January 11,
Ended Ended Ended Ended Ended 1994 to
April 30, October 31, October 31, October 31, April 30, April 30,
1998 1997 1996 1995 1995<F5> 1994<F2>
- --------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 16.29 $ 14.14 $ 11.81 $ 10.54 $ 9.82 $ 10.00
- --------------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income (loss) (0.06) (0.13) (0.07) -- 0.02 (0.01)
Net realized and unrealized gains
(losses) on investments 0.14 2.93 2.40 1.27 0.72 (0.17)
- --------------------------------------------------------------------------------------------------------------------------------
Total from Investment Activities 0.08 2.80 2.33 1.27 0.74 (0.18)
- --------------------------------------------------------------------------------------------------------------------------------
Distributions
Net investment income -- -- -- -- (0.02) --
Net realized gains (1.77) (0.65) -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
Total Distributions (1.77) (0.65) -- -- (0.02) --
- --------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 14.60 $ 16.29 $ 14.14 $ 11.81 $ 10.54 $ 9.82
- --------------------------------------------------------------------------------------------------------------------------------
Total Return (excludes sales charges) 2.04%<F3> 20.62%<F3> 19.73% 12.05%<F3> 7.51% (1.80)%<F3>
Ratios/Supplemental Data:
Net Assets, End of Period (000) $139,636 $104,565 $87,837 $54,335 $20,796 $30,867
Ratio of expenses to average net assets 1.37%<F4> 1.38% 1.47% 0.65%<F4> 1.04% 0.82%<F4>
Ratio of net investment income
(loss) to average net assets (1.13)%<F4> (0.93)% (0.62)% (0.13)%<F4> 0.17% (0.27)%<F4>
Ratio of expenses to average net assets<F1> 1.51%<F4> <F6> 1.51% 1.40%<F4> 1.35% 1.47%<F4>
Ratio of net investment loss to
average net assets<F1> (1.27)%<F4> <F6> (0.66)% (0.88)%<F4> (0.14)% (0.92)%<F4>
Portfolio turnover 118% 195% 152% 54% 102% 61%
- ---------------
<FN>
<F1> During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratios
would have been as indicated.
<F2> Period from commencement of operations.
<F3> Not annualized.
<F4> Annualized.
<F5> 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.
<F6> There were no voluntary fee reductions during the period.
</FN>
</TABLE>
See notes to financial statements.
This page is intentionally left blank.
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1-800-KEY-FUND(R)
(1-800-539-3863)
1VF-SEMI-AR 4/98
