Fund Evaluator:

Victory Amt-Free Municipal Fund Class C Overview

Victory Amt-Free Municipal Fund Class C (MNBCX) is an actively managed Municipal Bond Muni National Long fund. Victory Capital Management Inc. launched the fund in 2003.

The investment seeks as high a level of current interest income exempt from federal income tax as is consistent with the relative stability of capital. Normally, the fund invests at least 80% of its net assets (plus the amount of borrowings, if any, for investment purposes) in investment grade municipal bonds with a maturity of more than one year, the interest on which is exempt from regular federal income tax. The fund normally will not invest in securities the interest on which is a tax preference item for purposes of the federal alternative minimum tax (AMT).

About Victory Amt-Free Municipal Fund Class C (MNBCX)

There are 2 members of the management team with an average tenure of 0.58 years: Andrew Hattman (2025), Lauren Spalten (2025). Management tenure is more important for actively managed funds than passive index funds.

The fund has 1 primary benchmark: Bloomberg Municipal TR USD index with a weighting of 100%. Victory Amt-Free Municipal Fund Class C has 124 securities in its portfolio. The top 10 holdings constitute 24.0% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Victory Amt-Free Municipal Fund Class C is part of the Fixed Income global asset class and is within the Municipal Bond fund group. Victory Amt-Free Municipal Fund Class C has 4.6% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 99.9% (95.3% domestic bond, 4.6% foreign bond and 0.0% convertible bond). Victory Amt-Free Municipal Fund Class C has 0.1% of the portfolio in cash.

Assets Under Management

The fund has $5 million in total assets, which is below the $1 billion average for the Muni National Long category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

MNBCX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Victory Amt-Free Municipal Fund Class C expense ratio is high compared to funds in the Muni National Long category. Victory Amt-Free Municipal Fund Class C has an expense ratio of 1.54%, which is 97% higher than its category average, making the fund expense ratio grade a F. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Victory Amt-Free Municipal Fund Class C has a portfolio turnover rate of 68%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 38% for the Muni National Long category.

Recently, in the month of July 2026, Victory Amt-Free Municipal Fund Class C returned -3.1%, which earned it a grade of F, as the Muni National Long category had an average return of -1.9%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Victory Amt-Free Municipal Fund Class C has a trailing yield of 4.46%, which is above the 3.72% category average. The fund normally distributes its income monthly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Victory Amt-Free Municipal Fund Class C Grades

Year to date, the fund has returned -0.7%, 1.6 percentage points worse than the category, which translates into a grade of F. The fund has returned 5.2% over the past year (grade of F), 0.2% over the past three years (grade of F) and -3.0% per year over the past five years (grade of F) and -0.1% per year over the past 10 years (grade of F).

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