USAA Mutual Funds Trust

08/30/2024 | Press release | Distributed by Public on 08/30/2024 15:11

Summary Prospectus by Investment Company - Form 497K

Victory Small Cap Stock Fund Summary Prospectus
September 1, 2024
Summary
Prospectus
Victory Small Cap Stock Fund
Fund Shares
Institutional Shares
Class A
Class C
Class R6
USCAX
UISCX
-
-
-
Before you invest, you may want to review the Fund's Statutory Prospectus and Statement of Additional Information, both of which are dated September 1, 2024, and are incorporated by reference into this Summary Prospectus, as they each contain more information about the Fund and its risks.
You can find the Fund's Prospectus, reports to shareholders, and other information about the Fund online at VictoryFunds.com.
You also may obtain this information at no cost by calling (800) 235-8396 or by sending an e-mail request to [email protected].
You may also obtain this information at no cost from your financial intermediary.
vcm.com
(800) 235-8396
Victory Small Cap Stock Fund Summary
Investment Objective
The Victory Small Cap Stock Fund (the "Fund") seeks long-term growth of capital.
Fund Fees and Expenses
The tables below describe the fees and expenses that you may pay, if you buy, hold, and sell shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and example below.
Shareholder Fees
(paid directly from your investment)
Fund
Shares
Institutional
Shares
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)
None
None
Maximum Deferred Sales Charge (Load)
(as a percentage of the lower of purchase or sale price)
None
None
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
Management Fees1
0.70%
0.70%
Distribution and/or Service (12b-1) Fees
0.00%
0.00%
Other Expenses
0.32%
0.25%
Total Annual Fund Operating Expenses
1.02%
0.95%
Fee Waiver/Expense Reimbursement2
0.00%
(0.02)%
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement2
1.02%
0.93%
1
The management fee is comprised of a base fee (which is equal to an annualized rate of 0.75% of the Fund's average daily net assets) and a performance adjustment. The performance adjustment is calculated separately for each share class on a monthly basis and is added to or subtracted from the base fee depending upon the performance of the respective share classes relative to the Lipper Small-Cap Core Funds Index. Assets and performance are each measured over a rolling 36-month period. The annual adjustment rate ranges from +/- 0-6 basis points (a basis point is 1/100th of a percentage point) of average daily net assets depending on the level of over/under-performance. The performance adjustment reflected in the management fee may differ from the over/under annual adjustment rate due to differences in average net assets for the fiscal reporting period and rolling 36-month performance period. See Organization and Management of the Fund section for a description of the performance adjustment.
2
Victory Capital Management Inc. (the "Adviser") has contractually agreed to waive its management fee and/or reimburse expenses so that the total annual fund operating expenses (excluding certain items such as acquired fund fees and expenses, if any, interest, taxes, brokerage commissions, capitalized expenses, and other extraordinary expenses) do not exceed an annual rate of 1.10% and 0.98% of the Fund Shares and Institutional Shares, respectively, through at least August 31, 2025. The Adviser is permitted to recoup management fees waived and expenses reimbursed for up to three years after the date of the waiver or reimbursement, subject to the lesser of any operating expense limits in effect at the time of: (a) the original waiver or expense reimbursement; or (b) the recoupment, after giving effect to the recoupment amount. The amount of any waivers or reimbursements and the amount of any recoupment is calculated without regard to the impact of any performance adjustment to the Fund's management fee. This
agreement may only be terminated by the Fund's Board of Trustees.
1
Victory Small Cap Stock Fund Summary
Example:
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell or continue to hold all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The amounts shown reflect any fee waiver/expense reimbursement in place through its expiration date. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
1 Year
3 Years
5 Years
10 Years
Fund Shares
$104
$325
$563
$1,248
Institutional Shares
$95
$301
$524
$1,165
Portfolio Turnover:
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when shares of the Fund are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance. For the most recent fiscal year, the Fund's portfolio turnover rate was 62% of the average value of its portfolio.
Principal Investment Strategy
The Fund normally invests at least 80% of its assets in equity securities of companies with small market capitalizations. This 80% policy may be changed upon at least 60 days' prior written notice to shareholders. Although the Fund invests primarily in U.S. securities, it may invest up to 20% of its total assets in foreign securities, including securities issued in emerging markets. The Fund employs a multi-manager structure with the underlying managers implementing fundamentally driven security selection investment processes that focus on companies that may exhibit attractive levels of quality, value, and/or growth. The Fund defines small-cap stocks as those of companies that have a market capitalization equal to or lower than that of the largest market capitalization stock in either the S&P SmallCap 600 Index or the Russell 2000 Index at the time of purchase. Market capitalization of the companies may change with market conditions and with the composition of each index.
Principal Risks
The Fund's investments are subject to the following principal risks:
Small-Capitalization Stock Risk - The Fund is subject to small-cap company risk, which is the greater risk of investing in smaller, less well-known companies, as opposed to investing in established companies with proven track records. Small-cap companies also may have limited product lines, markets, or financial resources. Securities of such companies may be less liquid and more volatile than securities of larger companies or the market in general and, therefore, may involve greater risk than investing in the securities of larger companies.
General Market Risk - Overall market risks may affect the value of the Fund. Domestic and international factors such as political events, war, terrorism, trade disputes, inflation rates, interest rate levels and other fiscal and monetary policy changes, cybersecurity incidents, pandemics and
other public health crises, sanctions against a particular foreign country, its nationals, businesses
or industries, and related geopolitical events, as well as environmental disasters such as earthquakes, fires, and floods, or other catastrophes may add to instability in global economies and markets generally and may lead to increased market volatility. Global economies and financial markets are highly interconnected, which increases the possibility that conditions in one country or
2
Victory Small Cap Stock Fund Summary
region might adversely affect issuers in another country or region. The impact of these and other factors may be short-term or may last for extended periods.
Equity Securities Risk - The values of the equity securities in which the Fund invests may decline in response to developments affecting individual companies and/or general market, economic, and political conditions, and other factors. A company's earnings or dividends may not increase as expected due to poor management decisions, competitive pressures, breakthroughs in technology, reliance on suppliers, labor problems or shortages, corporate restructurings, fraudulent disclosures, natural disasters, military confrontations, war, terrorism, public health crises, or other events, conditions, and factors. Price changes may be temporary or may last for extended periods.
Foreign Securities Risk - Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market, or economic developments and can perform differently from the U.S. market. Global markets, or those in a particular region, may all react in similar fashion to important political, economic, or other developments. Events and evolving conditions in certain economies or markets may alter the risks associated with investments tied to countries or regions that historically were perceived as comparatively stable and make such investments riskier and more volatile.
Emerging Markets Risk - Foreign securities risk can be particularly heightened because investments in emerging market countries generally are more volatile than investments in developed markets. Emerging market countries are less economically diverse and mature than more developed countries and tend to be politically less stable.
Large Shareholder Risk - The actions by one shareholder or multiple shareholders may have an impact on the Fund and, therefore, indirectly on other shareholders. Shareholder purchase and redemption activity may affect the per share amount of the Fund's distributions of its net investment income and net realized capital gains, if any, thereby affecting the tax burden on the Fund's shareholders subject to federal income tax. To the extent a larger shareholder is permitted to invest in the Fund, the Fund may experience large inflows or outflows of cash from time to time. This activity could magnify these adverse effects on the Fund.
Management Risk - The Fund is actively managed, and the investment techniques and risk analyses used by the Fund's portfolio managers may not produce the desired results.
Any investment involves risk, and there is no assurance that the Fund's objective will be achieved. By itself, the Fund does not constitute a complete investment plan. As you consider an investment in the Fund, you also should take into account your tolerance for the daily fluctuations of the financial markets and whether you can afford to leave your money in the Fund for long periods of time to ride out down periods. As with other mutual funds, losing money is a risk of investing in the Fund.
An investment in the Fund is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
3
Victory Small Cap Stock Fund Summary
Investment Performance
The following bar chart and table are intended to help you understand some indication of the
risks of investing in the Fund. The bar chart illustrates the Fund Shares' volatility by showing how performance has varied from year to year for each full calendar year over the past 10 years. The table shows how the average annual total returns of the Fund for the periods indicated compared to those of the Fund's regulatory broad-based securities market index, the Fund's benchmark index, and an index of funds with similar investment objectives. The Russell 3000® Index serves as the Fund's regulatory broad-based securities market index. We assume reinvestment of dividends and distributions.
Performance data for the classes varies based on differences in their fee and expense structures and reflects any expense limitations in effect during the periods shown. Remember, historical performance (before and after taxes) does not necessarily indicate what will happen in the future. The Fund's most current performance information is available on the Fund's website at vcm.com or by calling (800) 235-8396.
Calendar Year Returns for Fund Shares
During the periods shown in the chart:
Returns
Quarter ended
Highest Quarter
33.13%
December 31, 2020
Lowest Quarter
-31.06%
March 31, 2020
Year-to-date return
-0.08%
June 30, 2024
4
Victory Small Cap Stock Fund Summary
Average Annual Total Returns
(For the Periods Ended December 31, 2023)
1 Year
5 Years
10 Years
FUND SHARES Before Taxes
17.35%
11.83%
7.20%
FUND SHARES After Taxes on Distributions
17.30%
8.42%
4.40%
FUND SHARES After Taxes on Distributions and Sale of Fund Shares
10.31%
8.80%
5.06%
INSTITUTIONAL SHARES Before Taxes
17.53%
11.93%
7.32%
Indices
Russell 3000® Index
reflects no deduction for fees, expenses, or taxes1
25.96%
15.16%
11.48%
Russell 2000® Index
reflects no deduction for fees, expenses, or taxes
16.93%
9.97%
7.16%
S&P SmallCap 600 Index
reflects no deduction for fees, expenses, or taxes
16.05%
11.03%
8.66%
Lipper Small-Cap Core Funds Index
reflects no deduction for taxes
16.15%
11.29%
7.76%
1
Per new regulatory requirements, the Fund's regulatory broad-based securities market index is the Russell 3000® Index, which represents the overall U.S. equity market.
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. In certain situations, the return after taxes on distributions and sale of fund shares may be higher than the other return amounts. A higher after-tax return may result when a capital loss occurs upon redemption and translates into an assumed tax deduction that benefits the shareholder. The actual after-tax returns depend on your tax situation and may differ from those shown. If you hold your shares through a tax-deferred arrangement, such as an individual retirement account ("IRA") or 401(k) plan, the after-tax returns shown in the table are not relevant to you. Please note that after-tax returns are shown only for the Fund Shares and may differ for each share class.
5
Victory Small Cap Stock Fund Summary
Management of the Fund
Investment Adviser
Victory Capital Management Inc. ("Adviser") serves as the Fund's investment Adviser.
The Adviser is a diversified global asset manager comprised of multiple investment teams, referred to as investment franchises, each of which utilizes an independent approach to investment. The portfolio managers primarily responsible for the day-to-day management of all or a portion of the Fund are members of the Adviser's RS Investments Value ("RS Value"), Integrity Asset Management ("Integrity"), THB Asset Management ("THB") investment franchises, its Victory Solutions platform, and Granahan Investment Management, LLC ("GIM"), which has been retained to serve as a subadviser.
Portfolio Management
Title
Tenure with the Fund
Robert J. Harris
Chief Investment Officer,
RS Value
Since 2020
Joseph Mainelli
Portfolio Manager, RS Value
Since 2020
Daniel G. Bandi
Chief Investment Officer, Integrity
Since 2021
Daniel J. DeMonica
Senior Portfolio Manager,
Integrity
Since 2021
Adam I. Friedman
Senior Portfolio Manager,
Integrity
Since 2021
Joe A. Gilbert
Portfolio Manager, Integrity
Since 2021
J. Bryan Tinsley
Portfolio Manager, Integrity
Since 2021
Michael P. Wayton
Portfolio Manager, Integrity
Since 2021
Christopher N. Cuesta
Chief Investment Officer, THB
Since 2021
Manish Maheshwari
Portfolio Manager, THB
Since 2021
Mannik S. Dhillon, CFA, CAIA
President, Investment Franchises
& Solutions
Since 2019
Jennifer M. Pawloski
Senior Vice President, Managing
Director, and Portfolio Manager,
GIM
Since 2012
Andrew L. Beja, CFA
Senior Vice President, Managing
Director, and Portfolio Manager,
GIM
Since 2012
David M. Rose, CFA
Chief Investment Officer,
Managing Director, and Portfolio
Manager, GIM
Since 2015
Jeffrey A. Harrison, CFA
Senior Vice President, Managing
Director, and Portfolio Manager,
GIM
Since 2015
Richard Watson, CFA
Senior Vice President and
Portfolio Manager, GIM
Since 2021
Kelvin Jiang, CFA
Vice President and Portfolio
Manager/Analyst, GIM
Since 2023
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Victory Small Cap Stock Fund Summary
Purchase and Sale of Fund Shares
Investment Minimums
Fund Shares
Institutional Shares
Minimum Initial Investment
$3,000
$1,000,000
Minimum Subsequent Investments
$50
None
You may purchase or sell Fund Shares on any business day through vcm.com or by telephone at (800) 235-8396. You also may purchase or sell Fund Shares through certain other financial intermediaries. If you have opened an account directly with the Fund, you also may purchase and sell Fund Shares by mail at P.O. Box 182593, Columbus, OH 43218-2593. The Fund reserves the right to waive or lower purchase minimums in certain circumstances.
Institutional Shares are not offered for sale directly to the general public. The Fund reserves the right to waive or lower purchase minimums in certain circumstances.
Certain broker-dealers and other financial intermediaries (such as a bank) may establish higher or lower minimum initial and subsequent investment amounts to which you may be subject if you invest through them.
When you buy and redeem shares, the Fund will price your transaction at the next-determined net asset value ("NAV") after the Fund receives your request in good order, which means that your request contains all the required documentation, and that all documents contain required signatures or signature guarantees from a financial institution.
Tax Information
The Fund intends to make distributions that generally will be taxed to you as ordinary income or long-term capital gains, unless you are a tax-exempt investor or you invest through an IRA, 401(k) plan, or other tax-deferred account (in which case you may be taxed later, upon withdrawal of your investment from such account).
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of such shares and certain servicing and administrative functions. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your financial adviser to recommend the Fund over another investment. Ask your financial adviser or visit your financial intermediary's website for more information.
7
Victory FundsP.O. Box 182593 Columbus, OH 43218-2593
98020-0924