Fund Evaluator:

Victory High Income Institutional Overview

Victory High Income Institutional (UIHIX) is an actively managed Taxable Bond High Yield Bond fund. Victory Capital Management Inc. launched the fund in 2008.

The investment seeks to provide an attractive total return primarily through high current income and secondarily through capital appreciation. The fund primarily invests its assets in a broad range of U.S. dollar-denominated high-yield securities, including bonds, convertible securities, leveraged loans, or preferred stocks, with an emphasis on non-investment-grade debt securities. Although the fund will invest primarily in U.S. securities, it may invest without limit in dollar-denominated foreign securities and to a limited extent in non-dollar-denominated foreign securities, including in each case emerging-markets securities.

About Victory High Income Institutional (UIHIX)

There are 4 members of the management team with an average tenure of 6.21 years: R.Neal Graves (2019), Kurt Daum (2016), Jim Jackson (2019), Jason Lincoln (2025). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and Bloomberg US HY 2% Issuer Cap TR USD index with a weighting of 100%. Victory High Income Institutional has 503 securities in its portfolio. The top 10 holdings constitute 16.5% 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 High Income Institutional is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Victory High Income Institutional has 14.7% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.4%. There is 0.0% allocated to foreign stock, and 0.6% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 91.1% (76.3% domestic bond, 14.7% foreign bond and 0.0% convertible bond). Victory High Income Institutional has 7.9% of the portfolio in cash.

Assets Under Management

The fund has $260 million in total assets, which is below the $545 million average for the High Yield Bond 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.

UIHIX 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 High Income Institutional expense ratio is above average compared to funds in the High Yield Bond category. Victory High Income Institutional has an expense ratio of 0.70%, which is 24% lower than its category average, making the fund expense ratio grade a B. 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 High Income Institutional has a portfolio turnover rate of 61%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 72% for the High Yield Bond category.

Recently, in the month of July 2026, Victory High Income Institutional returned -0.0%, which earned it a grade of A, as the High Yield Bond category had an average return of -0.3%. 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 High Income Institutional has a trailing yield of 7.03%, which is above the 6.28% 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 High Income Institutional Grades

Year to date, the fund has returned 1.5%, 0.1 percentage points worse than the category, which translates into a grade of C. The fund has returned 4.7% over the past year (grade of C), 7.8% over the past three years (grade of B) and 3.8% per year over the past five years (grade of C) and 4.9% per year over the past 10 years (grade of C).

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