Rule 497(e)
Registration No. 33-8982
Dear Shareholder: The Victory Funds is pleased to announce the reduction of
total fund operating expenses for the Victory Special Growth Fund. The following
information is important and should be kept with a copy of your Prospectus.
- --------------------------------------------------------------------------------
The Victory Funds
Balanced Fund
Diversified Stock Fund
Value Fund
Stock Index Fund
Ohio Regional Stock Fund
Growth Fund
Special Value Fund
Special Growth Fund
International Growth Fund
Supplement Dated January 8, 1998
to the Prospectus Dated March 1, 1997
As Previously Supplemented
The Prospectus of the above named funds is supplemented regarding only the
SPECIAL GROWTH FUND as follows:
1. On page 3 the section of the table referring to the SPECIAL GROWTH FUND under
"General Information about each of the Funds" is replaced as follows:
<TABLE>
<CAPTION>
-------------------------- -------------------- ------------------------- -------------- -------------------
ANNUAL EXPENSES AFTER MAXIMUM NEWSPAPER
VICTORY FUND INCEPTION DATE WAIVERS SALES CHARGE ABBREVIATION*
(AS A % OF NET ASSETS)
-------------------------- -------------------- ------------------------- -------------- -------------------
<S> <C> <C> <C> <C>
Special Growth Fund -- 1/11/94 1.40% 5.75% Victory SplGwth
Class A
-------------------------- -------------------- ------------------------- -------------- -------------------
</TABLE>
2. On page 18 the second table under "Fund Expenses" is replaced as follows:
----------------------------------------------- ---------------------
ANNUAL FUND OPERATING EXPENSES CLASS A SHARES
(as a percentage of average daily net assets)
----------------------------------------------- ---------------------
Management Fees 1.00%
----------------------------------------------- ---------------------
----------------------------------------------- ---------------------
Other Expenses1,2 .40%
----------------------------------------------- ---------------------
----------------------------------------------- ---------------------
Total Fund Operating Expenses1 1.40%
----------------------------------------------- ---------------------
1 These fees have been voluntarily reduced. Without this waiver, Other
Expenses expenses would be .53% and Total Fund Operating Expenses would be
1.53%.
2 Other Expenses includes an estimate of shareholder servicing fees the
Special Growth Fund expects to pay. See "Organization and Management of the
Funds--Shareholder Servicing Plan."
3. The last table on page 18 is replaced as follows:
The following example is designed to help you understand the various costs you
will bear, directly or indirectly, as an investor in the Special Growth Fund.
EXAMPLE: You would pay the following expenses on a $1,000 investment in
the Special Growth Fund, assuming: (1) a 5% annual return, and (2) redemption at
the end of each time period.
<TABLE>
<CAPTION>
-------------------- ---------------- --------------- --------------- ---------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
-------------------- ---------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Class A Shares $71 $99 $130 $216
-------------------- ---------------- --------------- --------------- ---------------
</TABLE>
THIS EXAMPLE IS ONLY AN ILLUSTRATION.
ACTUAL EXPENSES AND RETURNS WILL VARY.
Please insert this Supplement in the front of your Prospectus. Investors wishing
to obtain more information should call the Funds at 800-KEY-FUND(R).
VF-EQTY-SUP2
