Victory Tax-Exempt Intermediate-Term Fund (UTEIX)

Overview

The fund is an investment entity that focuses on maximizing tax-exempt income for its investors by primarily investing in investment-grade securities. These securities offer interest income that is not considered part of gross income for federal income tax purposes, providing a significant advantage in terms of tax savings. The fund's strategy is designed to maintain a balance between risk and return by investing at least 80% of its net assets in tax-exempt securities. It strictly adheres to a targeted dollar-weighted average portfolio maturity ranging from three to ten years, ensuring a moderate level of interest rate risk. Furthermore, the fund commits to distributing at least 80% of its annual net investment income dividends as tax-exempt income, which also excludes them from the federal alternative minimum tax calculations for individual taxpayers. This strategic approach positions the fund as an appealing option for investors seeking to optimize their tax-adjusted returns while maintaining a moderate risk profile in their investment portfolio.

Products and Services

• Investment in Tax-Exempt Securities

The core offering of the fund revolves around its investment in tax-exempt securities. These securities, primarily of investment grade, ensure a lower risk of default and a steady income stream that is exempt from federal income taxes. This key feature appeals to investors looking for reliable income sources without the added burden of significant tax implications. By focusing on these securities, the fund aims to provide a balanced investment portfolio that yields favorable tax-adjusted returns over time.

• Tax-Optimized Dividend Distribution

Another significant service provided by the fund is its commitment to distributing tax-optimized dividends. The fund guarantees that at least 80% of its annual net investment income will be distributed as dividends that are exempt from federal income tax and excluded from the federal alternative minimum tax for individual taxpayers. This service ensures that investors not only receive regular income from their investments but also benefit from the tax advantages associated with these dividends, thereby maximizing their overall investment returns after taxes.