Victory Short-Term Bond Fund Class A (UASBX)

Overview

The fund described operates as an investment vehicle that focuses on allocating assets towards a diversified portfolio of investment-grade debt securities. It adheres to a strategic commitment, investing at least 80% of its assets in a variety of debt instruments. The aim is to maintain a dollar-weighted average portfolio maturity of three years or less, catering to investors seeking relatively short-term exposures. By focusing on investment-grade securities, it targets achieving a balance between risk and returns, appealing to cautious investors interested in stable, fixed-income opportunities.

Products and Services

• Obligations of U.S., state, and local governments, their agencies and instrumentalities

This category encompasses a broad spectrum of debt securities issued by various levels of government within the United States. Investing in these securities offers investors potential benefits such as lower risk profiles and the security of backing from governmental entities. They are appealing to those seeking stable income streams with relatively low default risk.

• Mortgage- and asset-backed securities

Mortgage- and asset-backed securities are bonds backed by financial assets, typically loans or receivables. These may include mortgages (residential or commercial) and other types of loans, offering investors income generated from the underlying assets. Such investments can provide higher yields than government securities, along with diversification benefits, though they carry greater risks, including credit and market risks.

• Corporate debt securities

Corporate debt securities represent loans issued by corporations, paying interest to the holders. These can range from investment-grade bonds, which are considered safer, to high-yield (junk) bonds, offering higher interest rates to compensate for increased risk. Investing in corporate bonds allows investors to participate in a company's financing activities, potentially earning higher returns than government securities.

• Repurchase agreements

Repurchase agreements (repos) involve the sale of securities with an agreement to repurchase them at a set price on a future date. They are short-term investments and can provide investors with high liquidity and low risk. Repos are used by investors looking for temporary investments and by funds to manage cash efficiently.

• Other securities believed to have debt-like characteristics

This category includes a mix of financial instruments that are not traditional bonds but exhibit similar financial characteristics, such as preferred stocks, convertible bonds, and certain derivative instruments. Investments in these types of assets can offer enhanced yields and diversification benefits, though they might also introduce additional risks and complexities.