Download Victory CEMP US 500 Enhanced Volatility Wtd Index Fund

®
Victory CEMP US 500 Enhanced
Volatility Wtd Index Fund
®
®
As of June 30, 2017
CEMP uses a strategic beta indexing approach that
combines fundamental criteria with volatility weighting
to seek to improve an investor’s ability to outperform
traditional indexing strategies.
FUND OBJECTIVE
The Fund seeks to provide investment results that track the performance of the CEMP
US Large Cap 500 Long/Cash Volatility Weighted Index (the “Long/Cash Index”) before
fees and expenses.
INDEX DESCRIPTION
The Long/Cash Index tactically reduces its exposure to the equity markets during
periods of significant market declines and reinvests when market prices have further
declined or rebounded. The CEMP US Large Cap 500 Long/Cash Volatility Weighted
Index is based on the month-end price of the CEMP US Large Cap 500 Volatility
Weighted Index (the “Reference Index”).
LONG/CASH METHODOLOGY
The exit and reinvestment methodology of the Long/Cash Index is based on the monthend value of the Reference Index relative to its All-Time Highest Daily Closing Value
(“AHDCV”). AHDCV is the highest daily closing price the Reference Index has achieved
since its inception date.
Exit Strategy:
All measurements for the exit strategy are based on month-end values of the Reference
Index.
• If the Reference Index has declined 10% (or more) from its AHDCV, the Long/
Cash Index will liquidate 75% of its equity exposure at month-end.
• When the Long/Cash Index is less than 100% invested in its equity securities, the
remaining assets in the Long/Cash Index will be invested in 30-day Treasury bills
(or equivalents).
Reinvestment Strategy:
All measurements for re-investment are based upon month-end values of the
Reference Index.
• If the Reference Index has increased back to or above the point of exit (10%
decline from AHDCV), the assets that were liquidated will be reinvested, resulting
in the Long/Cash Index being 100% invested in equity securities.
• If the Reference Index has declined further and is now 20% or more below the
Reference Index’s AHDCV, 25% of the Long/Cash Index will be reinvested back
in its equity securities. The Long/Cash Index will then be approximately 50%
invested in equity securities.
• If the Reference Index has declined further and is now 30% or more below
the Reference Index’s AHDCV, another 25% of the Long/Cash Index will be
reinvested in its equity securities. The Long/Cash Index will then be approximately
75% invested in equity securities.
• If the Reference Index has declined further and is now 40% or more below
the Reference Index’s AHDCV, another 25% of the Long/Cash Index will be
reinvested in its equity securities. The Long/Cash Index will then be approximately
100% invested in equity securities.
Class
Ticker Symbol
CUSIP Number
A
CUHAX
92647P266
C
CUHCX
92647P241
I
CUHIX
92647P258
R6
CUHRX
92647P191
Minimum Investment
Initial
$2,500
A, C share
$2,000,000
Subsequent
I share
$50
Risk Statistics
Standard Deviation
10.01%
Sharpe Ratio
1.37
R-Squared
94.29%
Statistics for the period December 2012-June 2017
Data for Class A shares
R-squared compared to S&P 500®
Sector Weightings
Industrials
17.9%
Financials
17.1%
Information Technology
16.4%
Consumer Discretionary
15.3%
Health Care
11.3%
Consumer Staples
8.3%
Utilities
6.3%
Materials
4.7%
Energy
1.3%
Telecommunication Services
0.8%
Real Estate
0.5%
Fund Characteristics
Number of Holdings
Average Market Capitalization
P/E Ratio
500
$43.8B
25.8
*Subject to change
Management/Advisor
Victory Capital is a multi-boutique asset
manager comprised of multiple investment
teams, referred to as investment franchises,
each of which utilizes an independent
approach to investing. Effective January 1,
2016, Compass EMP changed its name to
CEMP.
Continued on next page
Victory CEMP US 500 Enhanced
Volatility Wtd Index Fund
As of June 30, 2017
Top 10 Holdings
Market Cap
Weighting*
Allstate Corporation
$32.3
0.38%
3M Company
$124.3
0.38%
Johnson & Johnson
$356.5
McDonald's Corporation
Market Cap
Weighting*
Leidos Holdings, Inc.
$7.8
0.10%
Akamai Technologies, Inc.
$8.6
0.10%
0.37%
TripAdvisor, Inc.
$5.4
0.10%
$124.8
0.37%
Alexion Pharmaceuticals, Inc.
$27.3
0.10%
Republic Services, Inc.
$21.6
0.37%
Santander Consumer USA Holdings, Inc.
$4.6
0.09%
Waste Management, Inc.
$32.4
0.36%
Illumina, Inc.
$25.3
0.09%
PepsiCo, Inc.
$165.2
0.35%
United Rentals, Inc.
$9.5
0.09%
Erie Indemnity Company Class A
Bottom 10 Holdings
$5.8
0.33%
Gap, Inc.
$8.7
0.09%
Coca-Cola Company
$191.6
0.33%
Kohl's Corporation
$6.6
0.09%
Walt Disney Company
$170.0
0.33%
Macy's Inc
$7.1
0.08%
*Fund holdings are rounded up to the nearest 100th of a percent as of 6/30/2017. All market cap numbers reported in billions.
Fund holdings and sector allocations are subject to change, may differ from the Index, and should not be considered investment advice.
ANNUALIZED RATE OF RETURN (%)
QTR.
YTD
1 YR
3 YR
Since
Inception*
Class A (NAV)
3.37
9.33
18.89
8.75
14.27
1.34
0.99
Class C (NAV)
3.23
9.00
18.09
7.94
13.43
2.06
1.74
Class I (NAV)
3.51
9.52
19.24
9.04
14.55
1.05
0.74
-2.58
3.03
12.07
6.64
12.81
2.23
8.00
17.09
7.94
13.43
CEMP US Large Cap 500 Long/Cash Volatility Wtd Index
3.69
9.96
20.16
10.04
15.95
S&P 500 Index (cap weighted index - comparison only)
3.09
9.34
17.90
9.61
15.27
Share Class
Class A: with 5.75% maximum sales charge (MOP)
Class C: with 1.00% CDSC (MOP)
Expense Ratio (%)
Gross
Net
Comparison
®
*Since inception results are as of the Fund’s inception date, November 19, 2012.
Performance represents past performance. Past performance does not guarantee future results. The investment return and principal
value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.
Current performance may be lower or higher than the performance data quoted. To obtain performance to the most recent month-end,
please call the Fund at 1-800-539-FUND.
The Adviser has contractually agreed to waive its management fee and/or reimburse expenses through at least October 31, 2017, so that the total annual fund operating
expenses after fee waiver and expense reimbursement (excluding acquired fund fees and expenses, and certain other items such as interest, taxes and brokerage
commissions) do not exceed 0.99%, 1.74%, 0.74%, 0.74% of the Fund’s Class A, Class C, Class I and Class R6 shares, respectively. The Adviser is permitted to recoup
advisory fees waived and expenses reimbursed by it or by the Fund’s predecessor advisor for up to three years after the fiscal year in which the waiver or reimbursement
took place, subject to any operating expense limits in effect at the time of the original waiver or expense reimbursement and at the time of recoupment. This agreement
may only be terminated by the Fund’s Board of Trustees.
Investments in mutual funds involve risks. Strategies intended to hedge risk may be partly or wholly unsuccessful. The value of the Fund’s investments in fixed income
securities will fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in the value of fixed income securities owned by the Fund.
Conversely, if rates fall, the value of the fixed income securities generally increases. The Fund is not actively managed and does not, therefore, seek returns in excess of
the Index. The Fund’s return may not match the return of the Index. The value of the equity securities in which the Fund invests may decline in response to developments
affecting individual companies and/or general economic conditions. The Fund may be subject to liquidity risk if the Advisor is not able to acquire or sell underlying
securities held by the Fund at a price that is acceptable to the Advisor. Indexes are unmanaged statistical composites and their returns do not include payment of any
sales charges or fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an
index.
Standard Deviation is applied to the annual rate of return of an investment to measure the investment’s volatility. Standard deviation is also known as historical volatility
and is used by investors as a gauge for the amount of expected volatility. Sharpe ratio is the average return earned in excess of the risk-free rate per unit of volatility or
total risk. Price-to-earnings ratio (P/E Ratio) is the ratio for valuing a company that measures its current share price relative to its per-share earnings.
The CEMP US Large Cap 500 Long/Cash Volatility Weighted Index reduces its exposure to the equity markets during periods of significant market declines and reinvests
when market prices have further declined or rebounded. The CEMP US Large Cap 500 Long/Cash Volatility Weighted Index is based on the month end price of the
CEMP US Large Cap 500 Volatility Weighted Index. The S&P 500® Index is a market capitalization-weighted index composed of the common stocks of 500 leading U.S.
companies.
Please consider the Fund’s investment objectives, risks, charges, and expenses carefully before investing. This and other important
information about the CEMP Funds can be found in the Fund’s current prospectus, which may be obtained by calling your Financial
Advisor or shareholder services at 1-800-539-FUND. Please read the prospectus carefully before investing.
The Funds are distributed by Victory Capital Advisers, Inc. (“VCA”), member FINRA and SIPC. Victory Capital Management Inc., an affiliate of VCA, is the investment adviser
to the Funds and receives a fee from the Funds for its services.
For more information, contact CEMP at 1-800-991-8191 or visit www.vcm.com