UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 

FORM N-CSR

 
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
 
 
Investment Company Act file number:          811-24018
 
Victory Variable Insurance Funds II
(Exact name of registrant as specified in charter)
 
15935 La Cantera Parkway Building Two, San Antonio, Texas 78256
 (Address of principal executive offices)                                    (Zip code)
 
Christopher J. Kelley, Victory Capital Management Inc. 60 State Street, Boston, MA 02109
(Name and address of agent for service)
 
 
Registrant’s telephone number, including area code: 800-539-3863
 
Date of fiscal year end: December 31
 
Date of reporting period: June 30, 2026
 
 
Item 1. Reports to Stockholders.
 
(a)
 
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Victory Pioneer Bond VCT Portfolio 

Image

Class I 

Semi-Annual Shareholder Report — June 30, 2026

The semi-annual shareholder report contains important information about Victory Pioneer Bond VCT Portfolio (the "Fund") for the period of January 1, 2026 to June 30, 2026. You can find additional information about the Fund at advisor.vcm.com/literature/ mutual-fund-prospectuses. You may also request more information by calling 800-539-3863 or visiting vcm.com/contact-us.    

What were the Fund's costs for the last six months?

(based on a hypothetical $10,000 investment)

Table Summary
Class Name
Costs of a $10,000 Investment
Costs paid as a percentage of a $10,000 InvestmentFootnote Reference*
Class I
$22
0.44%
FootnoteDescription
Footnote*
Annualized

FUND STATISTICS

($ amounts in 000s)

(as of June 30, 2026)

Table Summary
Net Assets
$128,572
Number of Holdings
805
Portfolio Turnover
113%
An image of a QR code that, when scanned, navigates the user to the following URL: https://advisor.vcm.com/literature/mutual-fund-prospectuses

Asset AllocationFootnote Reference* ^ (% of Net Assets)

(as of June 30, 2026)

Group By Asset Type Chart
Table Summary
Value
Value
Corporate Bonds
26.0%
U.S. Government Agency Mortgages
27.9%
Yankee Dollars
13.9%
U.S. Treasury Obligations
11.8%
Collateralized Mortgage Obligations
9.1%
Asset-Backed Securities
7.6%
Affiliated Mutual Fund
4.4%
OtherFootnote Reference**
2.0%
Table Summary
*
Does not include short-term investments, derivative contracts except for options purchased, or other assets in excess of liabilities.
**
Other includes the remaining asset classes which are each under 2% of the net assets of the Fund.
^
Percentages are of the net assets of the Fund and may not equal 100%.
Utilize the Full Financials link below to refer to the Schedule of Portfolio Investments for a complete list of securities.

Additional Shareholder Information

Additional information about the Fund is available on vcm.com and the adjacent QR code including:

Full Financials

Prospectus

Fund Holdings 

Proxy Voting 

 

Contact us at 800-539-3863 or visit vcm.com/contact-us.

An image of a QR code that, when scanned, navigates the user to the following URL: https://advisor.vcm.com/literature/mutual-fund-prospectuses

VPIBD1V — SAR (6/26)

Victory Pioneer Bond VCT Portfolio 

Image

Class II 

Semi-Annual Shareholder Report — June 30, 2026

The semi-annual shareholder report contains important information about Victory Pioneer Bond VCT Portfolio (the "Fund") for the period of January 1, 2026 to June 30, 2026. You can find additional information about the Fund at advisor.vcm.com/literature/ mutual-fund-prospectuses. You may also request more information by calling 800-539-3863 or visiting vcm.com/contact-us.    

What were the Fund's costs for the last six months?

(based on a hypothetical $10,000 investment)

Table Summary
Class Name
Costs of a $10,000 Investment
Costs paid as a percentage of a $10,000 InvestmentFootnote Reference*
Class II
$34
0.69%
FootnoteDescription
Footnote*
Annualized

FUND STATISTICS

($ amounts in 000s)

(as of June 30, 2026)

Table Summary
Net Assets
$128,572
Number of Holdings
805
Portfolio Turnover
113%
An image of a QR code that, when scanned, navigates the user to the following URL: https://advisor.vcm.com/literature/mutual-fund-prospectuses

Asset AllocationFootnote Reference* ^ (% of Net Assets)

(as of June 30, 2026)

Group By Asset Type Chart
Table Summary
Value
Value
Corporate Bonds
26.0%
U.S. Government Agency Mortgages
27.9%
Yankee Dollars
13.9%
U.S. Treasury Obligations
11.8%
Collateralized Mortgage Obligations
9.1%
Asset-Backed Securities
7.6%
Affiliated Mutual Fund
4.4%
OtherFootnote Reference**
2.0%
Table Summary
*
Does not include short-term investments, derivative contracts except for options purchased, or other assets in excess of liabilities.
**
Other includes the remaining asset classes which are each under 2% of the net assets of the Fund.
^
Percentages are of the net assets of the Fund and may not equal 100%.
Utilize the Full Financials link below to refer to the Schedule of Portfolio Investments for a complete list of securities.

Additional Shareholder Information

Additional information about the Fund is available on vcm.com and the adjacent QR code including:

Full Financials

Prospectus

Fund Holdings 

Proxy Voting 

 

Contact us at 800-539-3863 or visit vcm.com/contact-us.

An image of a QR code that, when scanned, navigates the user to the following URL: https://advisor.vcm.com/literature/mutual-fund-prospectuses

VPIBD2V — SAR (6/26)

Victory Pioneer Equity Income VCT Portfolio 

Image

Class I  

Semi-Annual Shareholder Report — June 30, 2026

The semi-annual shareholder report contains important information about Victory Pioneer Equity Income VCT Portfolio (the "Fund") for the period of January 1, 2026 to June 30, 2026. You can find additional information about the Fund at advisor.vcm.com/literature/ mutual-fund-prospectuses. You may also request more information by calling 800-539-3863 or visiting vcm.com/contact-us.    

What were the Fund's costs for the last six months?

(based on a hypothetical $10,000 investment)

Table Summary
Class Name
Costs of a $10,000 Investment
Costs paid as a percentage of a $10,000 InvestmentFootnote Reference*
Class I
$41
0.79%
FootnoteDescription
Footnote*
Annualized

FUND STATISTICS

($ amounts in 000s)

(as of June 30, 2026)

Table Summary
Net Assets
$72,537
Number of Holdings
59
Portfolio Turnover
22%
An image of a QR code that, when scanned, navigates the user to the following URL: https://advisor.vcm.com/literature/mutual-fund-prospectuses

Top SectorsFootnote Reference* (% of Net Assets)Footnote Reference

(as of June 30, 2026)

Group By Sector Chart
Table Summary
Value
Value
Materials
1.4%
Utilities
4.1%
Communication Services
6.3%
Consumer Staples
7.3%
Consumer Discretionary
7.7%
Energy
9.3%
Health Care
12.2%
Information Technology
14.0%
Industrials
14.5%
Financials
22.3%

Top 10 HoldingsFootnote Reference* (% of Net Assets)Footnote Reference

(as of June 30, 2026)

Table Summary
Bank of America Corp.
4.1%
JPMorgan Chase & Co.
3.9%
Exxon Mobil Corp.
3.8%
United Parcel Service, Inc., Class B
3.5%
State Street Corp.
3.0%
3M Co.
2.9%
Cisco Systems, Inc.
2.9%
International Business Machines Corp.
2.7%
Comcast Corp., Class A
2.6%
Wells Fargo & Co.
2.6%
Table Summary
*
Does not include short-term investments, derivative contracts except for options purchased, or other assets in excess of liabilities.
Utilize the Full Financials link below to refer to the Schedule of Portfolio Investments for a complete list of securities.

Additional Shareholder Information

Additional information about the Fund is available on vcm.com and the adjacent QR code including:

Full Financials

Prospectus

Fund Holdings 

Proxy Voting 

 

Contact us at 800-539-3863 or visit vcm.com/contact-us.

An image of a QR code that, when scanned, navigates the user to the following URL: https://advisor.vcm.com/literature/mutual-fund-prospectuses

VPIEI1V — SAR (6/26)

Victory Pioneer Equity Income VCT Portfolio 

Image

Class II  

Semi-Annual Shareholder Report — June 30, 2026

The semi-annual shareholder report contains important information about Victory Pioneer Equity Income VCT Portfolio (the "Fund") for the period of January 1, 2026 to June 30, 2026. You can find additional information about the Fund at advisor.vcm.com/literature/ mutual-fund-prospectuses. You may also request more information by calling 800-539-3863 or visiting vcm.com/contact-us.    

What were the Fund's costs for the last six months?

(based on a hypothetical $10,000 investment)

Table Summary
Class Name
Costs of a $10,000 Investment
Costs paid as a percentage of a $10,000 InvestmentFootnote Reference*
Class II
$54
1.04%
FootnoteDescription
Footnote*
Annualized

FUND STATISTICS

($ amounts in 000s)

(as of June 30, 2026)

Table Summary
Net Assets
$72,537
Number of Holdings
59
Portfolio Turnover
22%
An image of a QR code that, when scanned, navigates the user to the following URL: https://advisor.vcm.com/literature/mutual-fund-prospectuses

Top SectorsFootnote Reference* (% of Net Assets)Footnote Reference

(as of June 30, 2026)

Group By Sector Chart
Table Summary
Value
Value
Materials
1.4%
Utilities
4.1%
Communication Services
6.3%
Consumer Staples
7.3%
Consumer Discretionary
7.7%
Energy
9.3%
Health Care
12.2%
Information Technology
14.0%
Industrials
14.5%
Financials
22.3%

Top 10 HoldingsFootnote Reference* (% of Net Assets)Footnote Reference

(as of June 30, 2026)

Table Summary
Bank of America Corp.
4.1%
JPMorgan Chase & Co.
3.9%
Exxon Mobil Corp.
3.8%
United Parcel Service, Inc., Class B
3.5%
State Street Corp.
3.0%
3M Co.
2.9%
Cisco Systems, Inc.
2.9%
International Business Machines Corp.
2.7%
Comcast Corp., Class A
2.6%
Wells Fargo & Co.
2.6%
Table Summary
*
Does not include short-term investments, derivative contracts except for options purchased, or other assets in excess of liabilities.
Utilize the Full Financials link below to refer to the Schedule of Portfolio Investments for a complete list of securities.

Additional Shareholder Information

Additional information about the Fund is available on vcm.com and the adjacent QR code including:

Full Financials

Prospectus

Fund Holdings 

Proxy Voting 

 

Contact us at 800-539-3863 or visit vcm.com/contact-us.

An image of a QR code that, when scanned, navigates the user to the following URL: https://advisor.vcm.com/literature/mutual-fund-prospectuses

VPIEI2V — SAR (6/26)

Victory Pioneer Fund VCT Portfolio 

Image

Class I  

Semi-Annual Shareholder Report — June 30, 2026

The semi-annual shareholder report contains important information about Victory Pioneer Fund VCT Portfolio (the "Fund") for the period of January 1, 2026 to June 30, 2026. You can find additional information about the Fund at advisor.vcm.com/literature/mutual-fund-prospectuses. You may also request more information by calling 800-539-3863 or visiting vcm.com/contact-us.    

What were the Fund's costs for the last six months?

(based on a hypothetical $10,000 investment)

Table Summary
Class Name
Costs of a $10,000 Investment
Costs paid as a percentage of a $10,000 InvestmentFootnote Reference*
Class I
$39
0.74%
FootnoteDescription
Footnote*
Annualized

FUND STATISTICS

($ amounts in 000s)

(as of June 30, 2026)

Table Summary
Net Assets
$190,490
Number of Holdings
45
Portfolio Turnover
32%
An image of a QR code that, when scanned, navigates the user to the following URL: https://advisor.vcm.com/literature/mutual-fund-prospectuses

Top SectorsFootnote Reference* (% of Net Assets)Footnote Reference

(as of June 30, 2026)

Group By Sector Chart
Table Summary
Value
Value
Consumer Staples
2.4%
Energy
4.0%
Consumer Discretionary
6.4%
Financials
6.4%
Materials
7.2%
Utilities
7.3%
Health Care
7.9%
Communication Services
8.9%
Industrials
13.2%
Information TechnologyFootnote Reference**
35.1%

Top 10 HoldingsFootnote Reference* (% of Net Assets)Footnote Reference

(as of June 30, 2026)

Table Summary
NVIDIA Corp.
8.9%
Alphabet, Inc., Class A
6.9%
Amazon.com, Inc.
4.6%
United Parcel Service, Inc., Class B
4.5%
NRG Energy, Inc.
4.4%
Apple, Inc.
4.1%
Microsoft Corp.
4.0%
Martin Marietta Materials, Inc.
3.7%
Freeport-McMoRan, Inc.
3.5%
Eli Lilly & Co.
3.3%
Table Summary
*
Does not include short-term investments, derivative contracts except for options purchased, or other assets in excess of liabilities.
**
In the Schedule of Portfolio Investments, if a sector comprises more than 25% of the net assets of the Fund, the securities in that sector are displayed at the industry classification level.
Utilize the Full Financials link below to refer to the Schedule of Portfolio Investments for a complete list of securities.

Additional Shareholder Information

Additional information about the Fund is available on vcm.com and the adjacent QR code including:

Full Financials

Prospectus

Fund Holdings 

Proxy Voting 

 

Contact us at 800-539-3863 or visit vcm.com/contact-us.

An image of a QR code that, when scanned, navigates the user to the following URL: https://advisor.vcm.com/literature/mutual-fund-prospectuses

VPIFD1V — SAR (6/26)

Victory Pioneer Fund VCT Portfolio 

Image

Class II  

Semi-Annual Shareholder Report — June 30, 2026

The semi-annual shareholder report contains important information about Victory Pioneer Fund VCT Portfolio (the "Fund") for the period of January 1, 2026 to June 30, 2026. You can find additional information about the Fund at advisor.vcm.com/literature/mutual-fund-prospectuses. You may also request more information by calling 800-539-3863 or visiting vcm.com/contact-us.    

What were the Fund's costs for the last six months?

(based on a hypothetical $10,000 investment)

Table Summary
Class Name
Costs of a $10,000 Investment
Costs paid as a percentage of a $10,000 InvestmentFootnote Reference*
Class II
$52
0.99%
FootnoteDescription
Footnote*
Annualized

FUND STATISTICS

($ amounts in 000s)

(as of June 30, 2026)

Table Summary
Net Assets
$190,490
Number of Holdings
45
Portfolio Turnover
32%
An image of a QR code that, when scanned, navigates the user to the following URL: https://advisor.vcm.com/literature/mutual-fund-prospectuses

Top SectorsFootnote Reference* (% of Net Assets)Footnote Reference

(as of June 30, 2026)

Group By Sector Chart
Table Summary
Value
Value
Consumer Staples
2.4%
Energy
4.0%
Consumer Discretionary
6.4%
Financials
6.4%
Materials
7.2%
Utilities
7.3%
Health Care
7.9%
Communication Services
8.9%
Industrials
13.2%
Information TechnologyFootnote Reference**
35.1%

Top 10 HoldingsFootnote Reference* (% of Net Assets)Footnote Reference

(as of June 30, 2026)

Table Summary
NVIDIA Corp.
8.9%
Alphabet, Inc., Class A
6.9%
Amazon.com, Inc.
4.6%
United Parcel Service, Inc., Class B
4.5%
NRG Energy, Inc.
4.4%
Apple, Inc.
4.1%
Microsoft Corp.
4.0%
Martin Marietta Materials, Inc.
3.7%
Freeport-McMoRan, Inc.
3.5%
Eli Lilly & Co.
3.3%
Table Summary
*
Does not include short-term investments, derivative contracts except for options purchased, or other assets in excess of liabilities.
**
In the Schedule of Portfolio Investments, if a sector comprises more than 25% of the net assets of the Fund, the securities in that sector are displayed at the industry classification level.
Utilize the Full Financials link below to refer to the Schedule of Portfolio Investments for a complete list of securities.

Additional Shareholder Information

Additional information about the Fund is available on vcm.com and the adjacent QR code including:

Full Financials

Prospectus

Fund Holdings 

Proxy Voting 

 

Contact us at 800-539-3863 or visit vcm.com/contact-us.

An image of a QR code that, when scanned, navigates the user to the following URL: https://advisor.vcm.com/literature/mutual-fund-prospectuses

VPIFD2V — SAR (6/26)

Victory Pioneer High Yield VCT Portfolio 

Image

Class I 

Semi-Annual Shareholder Report — June 30, 2026

The semi-annual shareholder report contains important information about Victory Pioneer High Yield VCT Portfolio (the "Fund") for the period of January 1, 2026 to June 30, 2026. You can find additional information about the Fund at advisor.vcm.com/literature/ mutual-fund-prospectuses. You may also request more information by calling 800-539-3863 or visiting vcm.com/contact-us.    

What were the Fund's costs for the last six months?

(based on a hypothetical $10,000 investment)

Table Summary
Class Name
Costs of a $10,000 Investment
Costs paid as a percentage of a $10,000 InvestmentFootnote Reference*
Class I
$45
0.90%
FootnoteDescription
Footnote*
Annualized

FUND STATISTICS

($ amounts in 000s)

(as of June 30, 2026)

Table Summary
Net Assets
$27,254
Number of Holdings
186
Portfolio Turnover
27%
An image of a QR code that, when scanned, navigates the user to the following URL: https://advisor.vcm.com/literature/mutual-fund-prospectuses

Asset AllocationFootnote Reference* ^ (% of Net Assets)

(as of June 30, 2026)

Group By Asset Type Chart
Table Summary
Value
Value
Corporate Bonds
71.5%
Yankee Dollars
15.9%
Affiliated Mutual Fund
3.4%
Senior Secured Loans
2.2%
OtherFootnote Reference**
0.6%
Table Summary
*
Does not include short-term investments, derivative contracts except for options purchased, or other assets in excess of liabilities.
**
Other includes the remaining asset classes which are each under 2% of the net assets of the Fund.
^
Percentages are of the net assets of the Fund and may not equal 100%.
Utilize the Full Financials link below to refer to the Schedule of Portfolio Investments for a complete list of securities.

Additional Shareholder Information

Additional information about the Fund is available on vcm.com and the adjacent QR code including:

Full Financials

Prospectus

Fund Holdings 

Proxy Voting 

 

Contact us at 800-539-3863 or visit vcm.com/contact-us.

An image of a QR code that, when scanned, navigates the user to the following URL: https://advisor.vcm.com/literature/mutual-fund-prospectuses

VPIHY1V — SAR (6/26)

Victory Pioneer High Yield VCT Portfolio 

Image

Class II 

Semi-Annual Shareholder Report — June 30, 2026

The semi-annual shareholder report contains important information about Victory Pioneer High Yield VCT Portfolio (the "Fund") for the period of January 1, 2026 to June 30, 2026. You can find additional information about the Fund at advisor.vcm.com/literature/ mutual-fund-prospectuses. You may also request more information by calling 800-539-3863 or visiting vcm.com/contact-us.    

What were the Fund's costs for the last six months?

(based on a hypothetical $10,000 investment)

Table Summary
Class Name
Costs of a $10,000 Investment
Costs paid as a percentage of a $10,000 InvestmentFootnote Reference*
Class II
$58
1.15%
FootnoteDescription
Footnote*
Annualized

FUND STATISTICS

($ amounts in 000s)

(as of June 30, 2026)

Table Summary
Net Assets
$27,254
Number of Holdings
186
Portfolio Turnover
27%
An image of a QR code that, when scanned, navigates the user to the following URL: https://advisor.vcm.com/literature/mutual-fund-prospectuses

Asset AllocationFootnote Reference* ^ (% of Net Assets)

(as of June 30, 2026)

Group By Asset Type Chart
Table Summary
Value
Value
Corporate Bonds
71.5%
Yankee Dollars
15.9%
Affiliated Mutual Fund
3.4%
Senior Secured Loans
2.2%
OtherFootnote Reference**
0.6%
Table Summary
*
Does not include short-term investments, derivative contracts except for options purchased, or other assets in excess of liabilities.
**
Other includes the remaining asset classes which are each under 2% of the net assets of the Fund.
^
Percentages are of the net assets of the Fund and may not equal 100%.
Utilize the Full Financials link below to refer to the Schedule of Portfolio Investments for a complete list of securities.

Additional Shareholder Information

Additional information about the Fund is available on vcm.com and the adjacent QR code including:

Full Financials

Prospectus

Fund Holdings 

Proxy Voting 

 

Contact us at 800-539-3863 or visit vcm.com/contact-us.

An image of a QR code that, when scanned, navigates the user to the following URL: https://advisor.vcm.com/literature/mutual-fund-prospectuses

VPIHY2V — SAR (6/26)

Victory Pioneer Mid Cap Value VCT Portfolio 

Image

Class I  

Semi-Annual Shareholder Report — June 30, 2026

The semi-annual shareholder report contains important information about Victory Pioneer Mid Cap Value VCT Portfolio (the "Fund") for the period of January 1, 2026 to June 30, 2026. You can find additional information about the Fund at advisor.vcm.com/literature/ mutual-fund-prospectuses. You may also request more information by calling 800-539-3863 or visiting vcm.com/contact-us.    

What were the Fund's costs for the last six months?

(based on a hypothetical $10,000 investment)

Table Summary
Class Name
Costs of a $10,000 Investment
Costs paid as a percentage of a $10,000 InvestmentFootnote Reference*
Class I
$41
0.76%
FootnoteDescription
Footnote*
Annualized

FUND STATISTICS

($ amounts in 000s)

(as of June 30, 2026)

Table Summary
Net Assets
$113,779
Number of Holdings
66
Portfolio Turnover
11%
An image of a QR code that, when scanned, navigates the user to the following URL: https://advisor.vcm.com/literature/mutual-fund-prospectuses

Top SectorsFootnote Reference* (% of Net Assets)Footnote Reference

(as of June 30, 2026)

Group By Sector Chart
Table Summary
Value
Value
Materials
4.3%
Consumer Staples
6.1%
Health Care
6.4%
Real Estate
7.0%
Utilities
7.6%
Information Technology
8.2%
Consumer Discretionary
8.8%
Energy
8.8%
Industrials
17.9%
Financials
22.9%

Top 10 HoldingsFootnote Reference* (% of Net Assets)Footnote Reference

(as of June 30, 2026)

Table Summary
State Street Corp.
5.1%
Northern Trust Corp.
3.1%
Devon Energy Corp.
3.0%
M&T Bank Corp.
3.0%
CenterPoint Energy, Inc.
2.5%
Raymond James Financial, Inc.
2.5%
Citizens Financial Group, Inc.
2.2%
Truist Financial Corp.
2.2%
AGCO Corp.
2.1%
Eversource Energy
2.1%
Table Summary
*
Does not include short-term investments, derivative contracts except for options purchased, or other assets in excess of liabilities.
Utilize the Full Financials link below to refer to the Schedule of Portfolio Investments for a complete list of securities.

Additional Shareholder Information

Additional information about the Fund is available on vcm.com and the adjacent QR code including:

Full Financials

Prospectus

Fund Holdings 

Proxy Voting 

 

Contact us at 800-539-3863 or visit vcm.com/contact-us.

An image of a QR code that, when scanned, navigates the user to the following URL: https://advisor.vcm.com/literature/mutual-fund-prospectuses

VPIMV1V — SAR (6/26)

Victory Pioneer Mid Cap Value VCT Portfolio 

Image

Class II  

Semi-Annual Shareholder Report — June 30, 2026

The semi-annual shareholder report contains important information about Victory Pioneer Mid Cap Value VCT Portfolio (the "Fund") for the period of January 1, 2026 to June 30, 2026. You can find additional information about the Fund at advisor.vcm.com/literature/ mutual-fund-prospectuses. You may also request more information by calling 800-539-3863 or visiting vcm.com/contact-us.    

What were the Fund's costs for the last six months?

(based on a hypothetical $10,000 investment)

Table Summary
Class Name
Costs of a $10,000 Investment
Costs paid as a percentage of a $10,000 InvestmentFootnote Reference*
Class II
$54
1.01%
FootnoteDescription
Footnote*
Annualized

FUND STATISTICS

($ amounts in 000s)

(as of June 30, 2026)

Table Summary
Net Assets
$113,779
Number of Holdings
66
Portfolio Turnover
11%
An image of a QR code that, when scanned, navigates the user to the following URL: https://advisor.vcm.com/literature/mutual-fund-prospectuses

Top SectorsFootnote Reference* (% of Net Assets)Footnote Reference

(as of June 30, 2026)

Group By Sector Chart
Table Summary
Value
Value
Materials
4.3%
Consumer Staples
6.1%
Health Care
6.4%
Real Estate
7.0%
Utilities
7.6%
Information Technology
8.2%
Consumer Discretionary
8.8%
Energy
8.8%
Industrials
17.9%
Financials
22.9%

Top 10 HoldingsFootnote Reference* (% of Net Assets)Footnote Reference

(as of June 30, 2026)

Table Summary
State Street Corp.
5.1%
Northern Trust Corp.
3.1%
Devon Energy Corp.
3.0%
M&T Bank Corp.
3.0%
CenterPoint Energy, Inc.
2.5%
Raymond James Financial, Inc.
2.5%
Citizens Financial Group, Inc.
2.2%
Truist Financial Corp.
2.2%
AGCO Corp.
2.1%
Eversource Energy
2.1%
Table Summary
*
Does not include short-term investments, derivative contracts except for options purchased, or other assets in excess of liabilities.
Utilize the Full Financials link below to refer to the Schedule of Portfolio Investments for a complete list of securities.

Additional Shareholder Information

Additional information about the Fund is available on vcm.com and the adjacent QR code including:

Full Financials

Prospectus

Fund Holdings 

Proxy Voting 

 

Contact us at 800-539-3863 or visit vcm.com/contact-us.

An image of a QR code that, when scanned, navigates the user to the following URL: https://advisor.vcm.com/literature/mutual-fund-prospectuses

VPIMV2V — SAR (6/26)

Victory Pioneer Select Mid Cap Growth VCT Portfolio 

Image

Class I  

Semi-Annual Shareholder Report — June 30, 2026

The semi-annual shareholder report contains important information about Victory Pioneer Select Mid Cap Growth VCT Portfolio (the "Fund") for the period of January 1, 2026 to June 30, 2026. You can find additional information about the Fund at advisor.vcm.com/literature/ mutual-fund-prospectuses. You may also request more information by calling 800-539-3863 or visiting vcm.com/contact-us.    

What were the Fund's costs for the last six months?

(based on a hypothetical $10,000 investment)

Table Summary
Class Name
Costs of a $10,000 Investment
Costs paid as a percentage of a $10,000 InvestmentFootnote Reference*
Class I
$48
0.86%
FootnoteDescription
Footnote*
Annualized

FUND STATISTICS

($ amounts in 000s)

(as of June 30, 2026)

Table Summary
Net Assets
$118,893
Number of Holdings
78
Portfolio Turnover
39%
An image of a QR code that, when scanned, navigates the user to the following URL: https://advisor.vcm.com/literature/mutual-fund-prospectuses

Top SectorsFootnote Reference* (% of Net Assets)Footnote Reference

(as of June 30, 2026)

Group By Sector Chart
Table Summary
Value
Value
Real Estate
1.1%
Communication Services
1.4%
Consumer Staples
1.9%
Utilities
2.7%
Energy
3.1%
Financials
6.7%
Consumer Discretionary
12.1%
Health Care
14.6%
Industrials
21.8%
Information TechnologyFootnote Reference**
34.0%

Top 10 HoldingsFootnote Reference* (% of Net Assets)Footnote Reference

(as of June 30, 2026)

Table Summary
Cloudflare, Inc., Class A
3.5%
W.W. Grainger, Inc.
3.0%
Western Digital Corp.
2.9%
Flex Ltd.
2.9%
Vertiv Holdings Co., Class A
2.8%
Sandisk Corp.
2.8%
Advanced Micro Devices, Inc.
2.8%
Royal Caribbean Cruises Ltd.
2.5%
Datadog, Inc., Class A
2.5%
Siemens Energy AG
2.4%
Table Summary
*
Does not include short-term investments, derivative contracts except for options purchased, or other assets in excess of liabilities.
**
In the Schedule of Portfolio Investments, if a sector comprises more than 25% of the net assets of the Fund, the securities in that sector are displayed at the industry classification level.
Utilize the Full Financials link below to refer to the Schedule of Portfolio Investments for a complete list of securities.

Additional Shareholder Information

Additional information about the Fund is available on vcm.com and the adjacent QR code including:

Full Financials

Prospectus

Fund Holdings 

Proxy Voting 

 

Contact us at 800-539-3863 or visit vcm.com/contact-us.

An image of a QR code that, when scanned, navigates the user to the following URL: https://advisor.vcm.com/literature/mutual-fund-prospectuses

VPIGO1V — SAR (6/26)

Victory Pioneer Strategic Income VCT Portfolio 

Image

Class I 

Semi-Annual Shareholder Report — June 30, 2026

The semi-annual shareholder report contains important information about Victory Pioneer Strategic Income VCT Portfolio (the "Fund") for the period of January 1, 2026 to June 30, 2026. You can find additional information about the Fund at advisor.vcm.com/literature/ mutual-fund-prospectuses. You may also request more information by calling 800-539-3863 or visiting vcm.com/contact-us.    

What were the Fund's costs for the last six months?

(based on a hypothetical $10,000 investment)

Table Summary
Class Name
Costs of a $10,000 Investment
Costs paid as a percentage of a $10,000 InvestmentFootnote Reference*
Class I
$37
0.75%
FootnoteDescription
Footnote*
Annualized

FUND STATISTICS

($ amounts in 000s)

(as of June 30, 2026)

Table Summary
Net Assets
$29,225
Number of Holdings
468
Portfolio Turnover
95%
An image of a QR code that, when scanned, navigates the user to the following URL: https://advisor.vcm.com/literature/mutual-fund-prospectuses

Asset AllocationFootnote Reference* ^ (% of Net Assets)

(as of June 30, 2026)

Group By Asset Type Chart
Table Summary
Value
Value
Corporate Bonds
25.3%
Yankee Dollars
18.8%
U.S. Treasury Obligations
17.8%
U.S. Government Agency Mortgages
16.4%
Collateralized Mortgage Obligations
9.9%
Affiliated Mutual Fund
5.2%
Asset-Backed Securities
4.3%
OtherFootnote Reference**
3.0%
Table Summary
*
Does not include short-term investments, derivative contracts except for options purchased, or other assets in excess of liabilities.
**
Other includes the remaining asset classes which are each under 2% of the net assets of the Fund.
^
Percentages are of the net assets of the Fund and may not equal 100%.
Utilize the Full Financials link below to refer to the Schedule of Portfolio Investments for a complete list of securities.

Additional Shareholder Information

Additional information about the Fund is available on vcm.com and the adjacent QR code including:

Full Financials

Prospectus

Fund Holdings 

Proxy Voting 

 

Contact us at 800-539-3863 or visit vcm.com/contact-us.

An image of a QR code that, when scanned, navigates the user to the following URL: https://advisor.vcm.com/literature/mutual-fund-prospectuses

VPISI1V — SAR (6/26)

Victory Pioneer Strategic Income VCT Portfolio 

Image

Class II 

Semi-Annual Shareholder Report — June 30, 2026

The semi-annual shareholder report contains important information about Victory Pioneer Strategic Income VCT Portfolio (the "Fund") for the period of January 1, 2026 to June 30, 2026. You can find additional information about the Fund at advisor.vcm.com/literature/ mutual-fund-prospectuses. You may also request more information by calling 800-539-3863 or visiting vcm.com/contact-us.    

What were the Fund's costs for the last six months?

(based on a hypothetical $10,000 investment)

Table Summary
Class Name
Costs of a $10,000 Investment
Costs paid as a percentage of a $10,000 InvestmentFootnote Reference*
Class II
$50
1.00%
FootnoteDescription
Footnote*
Annualized

FUND STATISTICS

($ amounts in 000s)

(as of June 30, 2026)

Table Summary
Net Assets
$29,225
Number of Holdings
468
Portfolio Turnover
95%
An image of a QR code that, when scanned, navigates the user to the following URL: https://advisor.vcm.com/literature/mutual-fund-prospectuses

Asset AllocationFootnote Reference* ^ (% of Net Assets)

(as of June 30, 2026)

Group By Asset Type Chart
Table Summary
Value
Value
Corporate Bonds
25.3%
Yankee Dollars
18.8%
U.S. Treasury Obligations
17.8%
U.S. Government Agency Mortgages
16.4%
Collateralized Mortgage Obligations
9.9%
Affiliated Mutual Fund
5.2%
Asset-Backed Securities
4.3%
OtherFootnote Reference**
3.0%
Table Summary
*
Does not include short-term investments, derivative contracts except for options purchased, or other assets in excess of liabilities.
**
Other includes the remaining asset classes which are each under 2% of the net assets of the Fund.
^
Percentages are of the net assets of the Fund and may not equal 100%.
Utilize the Full Financials link below to refer to the Schedule of Portfolio Investments for a complete list of securities.

Additional Shareholder Information

Additional information about the Fund is available on vcm.com and the adjacent QR code including:

Full Financials

Prospectus

Fund Holdings 

Proxy Voting 

 

Contact us at 800-539-3863 or visit vcm.com/contact-us.

An image of a QR code that, when scanned, navigates the user to the following URL: https://advisor.vcm.com/literature/mutual-fund-prospectuses

VPISI2V — SAR (6/26)

 
 
(b)  Not applicable.
 
Item 2. Code of Ethics.
 
         Not applicable – only for annual reports.
               
Item 3. Audit Committee Financial Expert.
 
Not applicable – only for annual reports.
 
Item 4. Principal Accountant Fees and Services.
        
Not applicable – only for annual reports.
 
Item 5.  Audit Committee of Listed Registrants.
 
Not applicable. 
 
Item 6. Investments.
 
(a)  Not applicable.
 
(b)  Not applicable.
 
Item 7. Financial Statements and Other Information.
 
(a)
 
 
June
30,
2026
Semi-Annual:
Full
Financials
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Bond
VCT
Portfolio
TABLE
OF
CONTENTS
Victory
Variable
Insurance
Funds
II
1
The
Fund
is
distributed
by
Victory
Capital
Services,
Inc.
Victory
Capital
Management
Inc.
is
the
investment
adviser
to
the
Fund
and
receives
fees
from
the
Fund
for
performing
services
for
the
Fund.
This
report
is
not
authorized
for
distribution
to
prospective
investors
unless
preceded
or
accompanied
by
a
current
prospectus
of
the
Fund.
For
additional
information
about
any
Victory
Fund,
including
fees,
expenses,
and
risks,
view
our
prospectus
online
at
vcm.com
or
call
800-539-3863.
Read
it
carefully
before
you
invest
or
send
money.
The
information
in
this
report
is
based
on
data
obtained
from
recognized
services
and
sources
and
is
believed
to
be
reliable.
Any
opinions,
projections,
or
recommendations
in
this
report
are
subject
to
change
without
notice
and
are
not
intended
as
individual
investment
advice.
Past
investment
performance
of
the
Fund,
markets
or
securities
mentioned
herein
should
not
be
considered
to
be
indicative
of
future
results
•
NOT
FDIC
INSURED
•
NO
BANK
GUARANTEE
•
MAY
LOSE
VALUE
Schedule
of
Portfolio
Investments
(Form
N-CSR
Item
6)
2
Financial
Statements
(Form
N-CSR
Item
7)
Statement
of
Assets
and
Liabilities
18
Statement
of
Operations
19
Statements
of
Changes
in
Net
Assets
20
Financial
Highlights
22
Notes
to
Financial
Statements
(Form
N-CSR
Item
7)
24
Schedule
of
Portfolio
Investments
June
30,
2026
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Bond
VCT
Portfolio
2
(Unaudited)
See
notes
to
financial
statements.
Security
Description
Principal
Amount
(000)
a
Value
(000)
Asset-Backed
Securities
(7.6%)
ABS
Auto
(3.2%):
American
Credit
Acceptance
Receivables
Trust
.................................
Series
2024-3,
Class
D,
6.04%,
7/12/30,
Callable
2/12/28
@
100(a)
...............
$
100
$
101
Series
2025-2,
Class
D,
5.50%,
8/12/31,
Callable
7/12/28
@
100(a)
...............
170
172
Series
2025-4,
Class
D,
5.25%,
9/12/31,
Callable
5/12/28
@
100(a)
...............
100
100
Drive
Auto
Receivables
Trust,
Series
2025-1,
Class
D,
5.41%,
9/15/32,
Callable
2/15/29
@
100
390
391
Exeter
Automobile
Receivables
Trust
.........................................
Series
2023-5A,
Class
D,
7.13%,
2/15/30,
Callable
12/15/28
@
100
...............
300
308
Series
2024-5A,
Class
D,
5.06%,
2/18/31,
Callable
3/15/29
@
100
................
170
170
Series
2025-3A,
Class
D,
5.57%,
10/15/31,
Callable
9/15/29
@
100
...............
370
372
GLS
Auto
Receivables
Issuer
Trust
..........................................
Series
2023-4A,
Class
D,
7.18%,
8/15/29,
Callable
12/15/28
@
100(a)
.............
140
143
Series
2024-3A,
Class
D,
5.53%,
2/18/31,
Callable
5/15/29
@
100(a)
..............
470
473
Series
2025-2A,
Class
D,
5.59%,
1/15/31,
Callable
8/15/29
@
100(a)
..............
100
101
GLS
Auto
Select
Receivables
Trust,
Series
2024-4A,
Class
D,
5.28%,
10/15/31,
Callable
6/15/29
@
100(a)
...................................................
100
100
Hertz
Vehicle
Financing
III
LP,
Series
2021-2A,
Class
B,
2.12%,
12/27/27(a)
............
300
298
Merchants
Fleet
Funding
LLC
..............................................
Series
2024-1A,
Class
C,
6.18%,
4/20/37,
Callable
3/20/27
@
100(a)
..............
220
222
Series
2024-1A,
Class
D,
6.85%,
4/20/37,
Callable
3/20/27
@
100(a)
..............
110
111
Series
2025-1A,
Class
A,
4.49%,
1/20/39,
Callable
3/20/29
@
100(a)
..............
110
110
Prestige
Auto
Receivables
Trust,
Series
2025-1A,
Class
D,
6.02%,
7/15/31,
Callable
3/15/29
@
100(a)
...........................................................
110
109
Santander
Drive
Auto
Receivables
Trust
.......................................
Series
2024-2,
Class
D,
6.28%,
8/15/31,
Callable
5/15/28
@
100
.................
150
153
Series
2024-4,
Class
D,
5.32%,
12/15/31,
Callable
6/15/28
@
100
................
340
341
VStrong
Auto
Receivables
Trust,
Series
2023-A,
Class
D,
9.31%,
2/15/30,
Callable
12/15/28
@
100(a)
...........................................................
100
107
Westlake
Automobile
Receivables
Trust,
Series
2024-2A,
Class
D,
5.91%,
4/15/30,
Callable
2/15/28
@
100(a)
...................................................
250
253
4,135
ABS
Card
(0.4%):
Continental
Finance
Credit
Card
ABS
Master
Trust,
Series
2024-A,
Class
A,
5.78%,
12/15/32,
Callable
9/15/27
@
100(a)
............................................
100
101
Mission
Lane
Credit
Card
Master
Trust
.......................................
Series
2024-B,
Class
A,
5.88%,
1/15/30(a)
.................................
220
220
Series
2024-B,
Class
B,
6.32%,
1/15/30(a)
.................................
140
140
461
ABS
Home
(0.3%):
Equifirst
Mortgage
Loan
Trust,
Series
2003-1,
Class
IF1,
4.01%,
12/25/32,
Callable
7/25/26
@
100(b)
...........................................................
12
11
GS
Mortgage-Backed
Securities
Trust,
Series
2025-CES1,
Class
A1A,
5.57%,
5/25/55,
Callable
3/25/28
@
100(a)(b)
..........................................
128
129
RCKT
Mortgage
Trust,
Series
2026-CES6,
Class
A1A,
5.32%,
6/25/56,
Callable
6/25/30
@
100(a)(b)
.........................................................
150
150
Vista
Point
Securitization
Trust,
Series
2024-CES1,
Class
A1,
6.68%,
5/25/54,
Callable
5/25/27
@
100(a)(b)
.......................................................
149
150
440
ABS
Other
(3.7%):
Accelerated
Assets
LLC,
Series
2024-HE2,
Class
A,
5.35%,
10/25/39,
Callable
10/25/29
@
100(a)
...........................................................
104
103
Amur
Equipment
Finance
Receivables
XI
LLC,
Series
2022-2A,
Class
D,
7.25%,
5/21/29,
Callable
8/20/26
@
100(a)
............................................
300
301
Amur
Equipment
Finance
Receivables
XII
LLC,
Series
2023-1A,
Class
C,
6.36%,
12/20/29,
Callable
6/20/27
@
100(a)
............................................
100
101
Amur
Equipment
Finance
Receivables
XIV
LLC,
Series
2024-2A,
Class
D,
5.97%,
10/20/31,
Callable
8/20/28
@
100(a)
............................................
210
212
BHG
Securitization
Trust,
Series
2022-C,
Class
E,
9.73%,
10/17/35,
Callable
12/17/28
@
100(a)
...........................................................
140
147
Blackbird
Capital
II
Aircraft
Lease
Ltd.,
Series
2021-1A,
Class
A,
2.44%,
7/15/46,
Callable
7/15/28
@
100(a)
...................................................
148
140
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Bond
VCT
Portfolio
3
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
June
30,
2026
See
notes
to
financial
statements.
Security
Description
Principal
Amount
(000)
a
Value
(000)
Cascade
MH
Asset
Trust
..................................................
Series
2021-MH1,
Class
M1,
2.99%,
2/25/46,
Callable
7/25/36
@
100(a)
...........
$
200
$
160
Series
2021-MH1,
Class
M2,
3.69%,
2/25/46,
Callable
7/25/36
@
100(a)
...........
100
81
DataBank
Issuer,
Series
2024-1A,
Class
A2,
5.30%,
1/26/54,
Callable
1/25/27
@
100(a)
....
160
159
Dell
Equipment
Finance
Trust,
Series
2024-1,
Class
D,
6.12%,
9/23/30,
Callable
12/22/26
@
100(a)
...........................................................
100
101
FIGRE
Trust
..........................................................
Series
2024-HE3,
Class
A,
5.94%,
7/25/54,
Callable
4/25/27
@
100(a)(b)
...........
245
247
Series
2024-HE6,
Class
A,
5.72%,
12/25/54,
Callable
8/25/29
@
100(a)(b)
..........
428
431
Series
2025-HE1,
Class
A,
5.83%,
1/25/55,
Callable
2/25/28
@
100(a)(b)
...........
226
228
Series
2025-HE2,
Class
A,
5.78%,
3/25/55,
Callable
10/25/27
@
100(a)(b)
..........
108
109
Series
2025-HE5,
Class
A,
5.29%,
8/25/55,
Callable
2/25/28
@
100(a)(b)
...........
356
354
Series
2025-HE8,
Class
A,
5.21%,
11/25/55,
Callable
6/25/27
@
100(a)(b)
..........
129
128
GS
Mortgage-Backed
Securities
Trust,
Series
2025-SL1,
Class
A1,
5.85%,
11/25/67,
Callable
3/25/28
@
100(a)(b)
.................................................
160
160
Home
Partners
of
America
Trust,
Series
2019-1,
Class
D,
3.41%,
9/17/39,
Callable
7/17/26
@
100(a)(c)
.........................................................
76
74
HPEFS
Equipment
Trust,
Series
2024-2A,
Class
D,
5.82%,
4/20/32,
Callable
1/20/28
@
100(a)
100
101
J.G.
Wentworth
XLI
LLC
.................................................
Series
2010-3A,
Class
A,
3.82%,
12/15/48,
Callable
7/15/26
@
100(a)
.............
2
2
Series
2019-1A,
Class
A,
3.82%,
8/17/71,
Callable
3/15/42
@
100(a)
..............
149
132
Mosaic
Solar
Loan
Trust,
Series
2019-2A,
Class
A,
2.88%,
9/20/40,
Callable
2/20/31
@
100(a)
53
46
MVW
LLC,
Series
2020-1A,
Class
C,
4.21%,
10/20/37,
Callable
8/20/26
@
100(a)
........
16
16
Nelnet
Student
Loan
Trust,
Series
2021-A,
Class
B1,
2.85%,
4/20/62,
Callable
8/20/31
@
100(a)
...........................................................
200
180
NMEF
Funding
LLC,
Series
2024-A,
Class
C,
6.33%,
12/15/31,
Callable
2/15/28
@
100(a)
..
200
203
Pagaya
AI
Debt
Grantor
Trust,
Series
2024-10,
Class
A,
5.18%,
6/15/32,
Callable
11/15/26
@
100(a)
...........................................................
29
29
Reach
ABS
Trust,
Series
2026-1A,
Class
A,
4.32%,
2/15/33,
Callable
3/15/30
@
100(a)
....
73
72
ReadyCap
Lending
Small
Business
Loan
Trust,
Series
2023-3,
Class
A,
6.82%
(PRIME+7bps),
4/25/48,
Callable
11/25/27
@
100(a)(d)
...................................
108
109
Saluda
Grade
Alternative
Mortgage
Trust,
Series
2022-SEQ2,
Class
A3,
4.50%,
2/25/52,
Callable
7/25/26
@
100(a)(b)
..........................................
125
122
SCF
Equipment
Leasing
LLC,
Series
2025-2A,
Class
D,
5.33%,
6/20/36,
Callable
3/20/28
@
100(a)
...........................................................
100
98
SpringCastle
America
Funding
LLC,
Series
2020-AA,
Class
A,
1.97%,
9/25/37,
Callable
7/25/26
@
100(a)
...................................................
51
48
Tricon
American
Homes
Trust,
Series
2020-SFR2,
Class
E1,
2.73%,
11/17/39(a)(c)
........
180
173
Upstart
Securitization
Trust,
Series
2026-3,
Class
B,
5.35%,
7/20/36(a)
................
150
150
4,717
Total
Asset-Backed
Securities
(Cost
$9,830)
a
a
a
9,753
Collateralized
Loan
Obligations
(1.5%)
Cash
Flow
CLO
(1.5%):
ACREC
LLC,
Series
2026-FL5,
Class
A,
4.95%
(TSFR1M+135bps),
7/18/43,
Callable
6/18/28
@
100(a)(c)(d)
.....................................................
100
100
Arbor
Realty
Collateralized
Loan
Obligation
Ltd.,
Series
2025-BTR1,
Class
AS,
6.28%
(TSFR1M+264bps),
1/20/41,
Callable
5/20/27
@
100(a)(d)
.....................
230
231
Arbor
Realty
Commercial
Real
Estate
Notes
Ltd.,
Series
2022-FL1,
Class
C,
5.89%
(SOFR30A+230bps),
1/15/37,
Callable
7/15/26
@
100(a)(d)
....................
265
265
AREIT
Ltd.,
Series
2022-CRE6,
Class
D,
6.46%
(SOFR30A+285bps),
1/20/37,
Callable
2/17/27
@
100(a)(d)
.................................................
150
150
Dwight
Issuer
LLC
......................................................
Series
2025-FL1,
Class
A,
5.30%
(TSFR1M+166bps),
6/18/42,
Callable
7/19/27
@
100(a)(d)
.........................................................
300
301
Series
2026-FL2,
Class
A,
5.00%
(TSFR1M+140bps),
1/18/44,
Callable
12/18/28
@
100(a)(c)(d)
.......................................................
110
110
FS
Rialto
Issuer
LLC,
Series
2025-FL10,
Class
A,
5.02%
(TSFR1M+139bps),
8/19/42,
Callable
8/19/27
@
100(a)(c)(d)
........................................
230
230
Sound
Point
CLO
XXVIII
Ltd.,
Series
2020-3A,
Class
D,
7.58%
(TSFR3M+391bps),
1/25/32,
Callable
7/25/26
@
100(a)(d)
..........................................
250
247
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Bond
VCT
Portfolio
4
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
June
30,
2026
See
notes
to
financial
statements.
Security
Description
Principal
Amount
(000)
a
Value
(000)
STWD
Ltd.,
Series
2022-FL3,
Class
B,
5.54%
(SOFR30A+195bps),
11/15/38,
Callable
7/15/26
@
100(a)(d)
.......................................................
$
350
$
350
1,984
Total
Collateralized
Loan
Obligations
(Cost
$1,983)
a
a
a
1,984
Collateralized
Mortgage
Obligations
(9.1%)
Agency
CMO
IO
(0.4%):
Federal
Home
Loan
Mortgage
Corporation
REMICs
..............................
Series
4091,
Class
SH,
2.84%
(SOFR30A+644bps),
8/15/42(c)(d)
................
127
17
Series
4601,
Class
NI,
3.50%,
9/15/45(c)
..................................
55
7
Series
4999,
Class
QI,
4.00%,
5/25/50(c)
..................................
62
13
Series
5067,
Class
GI,
4.00%,
12/25/50(c)
.................................
80
16
Federal
National
Mortgage
Association
REMICs
................................
Series
2019-59,
Class
AI,
4.00%,
10/25/39(c)
...............................
28
4
Series
2020-83,
Class
EI,
4.00%,
11/25/50(c)
...............................
55
11
Series
2021-78,
Class
CI,
4.50%,
11/25/51(c)
...............................
58
13
Government
National
Mortgage
Association
....................................
Series
2019-159,
Class
CI,
3.50%,
12/20/49(c)
..............................
318
51
Series
2020-34,
Class
IO,
5.00%,
12/20/39(c)
...............................
283
51
Series
2020-9,
Class
SA,
1/20/50(c)(e)
....................................
280
3
Series
2021-136,
Class
YI,
3.00%,
8/20/51(c)
...............................
192
23
Series
2021-140,
Class
IO,
2.50%,
8/20/51(c)
...............................
222
21
Series
2021-146,
Class
QI,
3.00%,
8/20/51(c)
...............................
66
10
Series
2021-96,
Class
BI,
3.50%,
6/20/51(c)
................................
76
13
Series
2023-168,
Class
ID,
2.50%,
3/20/51(c)
...............................
143
16
Series
2023-70,
Class
IO,
4.00%,
6/20/50(c)
................................
195
39
Series
2024-206,
Class
IO,
2.50%,
10/20/51(c)
..............................
229
22
Series
2024-24,
Class
AI,
2.50%,
8/20/51(c)
................................
189
18
Series
2025-120,
Class
IC,
4.50%,
1/20/50(c)
...............................
186
41
Series
2025-173,
Class
AI,
2.50%,
10/20/51(c)
..............................
733
74
463
Agency
CMO
Other
(0.4%):
Federal
Home
Loan
Mortgage
Corporation,
Series
2944,
Class
OH,
5.50%,
3/15/35
.......
9
9
Federal
National
Mortgage
Association,
Series
2013-61,
Class
BY,
3.00%,
6/25/43
........
550
465
474
Agency
Commercial
MBS
(0.0%):(f)
Government
National
Mortgage
Association,
Series
2017-21,
Class
IO,
0.59%,
10/16/58,
Callable
7/16/43
@
100(b)(c)
..........................................
564
19
Commercial
MBS
(3.7%):
BAY
Trust,
Series
2026-MDWS,
Class
A,
5.24%
(TSFR1M+164bps),
6/15/41(a)(c)(d)
.....
260
259
Bayview
Commercial
Asset
Trust,
Series
2007-2A,
Class
IO,
7/25/37(c)(e)(g)
............
84
—
Benchmark
Mortgage
Trust
................................................
Series
2018-B8,
Class
A4,
3.96%,
1/15/52,
Callable
12/15/28
@
100
..............
250
247
Series
2020-IG3,
Class
B,
3.35%,
9/15/48,
Callable
4/15/30
@
100(a)(b)
...........
200
144
Series
2022-B34,
Class
AM,
3.95%,
4/15/55,
Callable
4/15/32
@
100(b)
...........
100
88
BX
Commercial
Mortgage
Trust,
Series
2021-VIV5,
Class
A,
2.84%,
3/9/44(a)(b)(c)
......
500
462
BX
Trust,
Series
2019-OC11,
Class
A,
3.20%,
12/9/41,
Callable
12/9/29
@
100(a)(c)
......
400
378
Citigroup
Commercial
Mortgage
Trust,
Series
2018-C5,
Class
A3,
3.96%,
6/10/51,
Callable
6/10/28
@
100
.....................................................
231
228
COMM
Mortgage
Trust,
Series
2024-WCL1,
Class
A,
5.47%
(TSFR1M+184bps),
6/15/41(a)
(c)(d)
...........................................................
320
320
Federal
Home
Loan
Mortgage
Corporation
.....................................
Series
2018-KSW4,
Class
B,
6.16%
(SOFR30A+256bps),
10/25/28(a)(d)
...........
109
107
Series
2019-K88,
Class
C,
4.53%,
2/25/52,
Callable
4/25/29
@
100(a)(b)
...........
100
97
FREMF
Mortgage
Trust
..................................................
Series
2017-KW03,
Class
B,
4.22%,
7/25/27(a)(b)
...........................
150
148
Series
2019-KF66,
Class
B,
6.11%
(SOFR30A+251bps),
7/25/29(a)(d)
............
107
101
Hilt
Commercial
Mortgage
Trust,
Series
2024-ORL,
Class
A,
5.17%
(TSFR1M+154bps),
5/15/37(a)(c)(d)
....................................................
200
200
HTL
Commercial
Mortgage
Trust,
Series
2024-T53,
Class
B,
6.77%,
5/10/39(a)(b)(c)
......
100
101
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Bond
VCT
Portfolio
5
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
June
30,
2026
See
notes
to
financial
statements.
Security
Description
Principal
Amount
(000)
a
Value
(000)
ILPT
Trust,
Series
2019-SURF,
Class
A,
4.15%,
2/11/41(a)(c)
.......................
$
323
$
315
JP
Morgan
Chase
Commercial
Mortgage
Securities
Trust,
Series
2018-WPT,
Class
AFX,
4.25%,
7/5/33(a)(c)
.................................................
250
236
JPMDB
Commercial
Mortgage
Securities
Trust
.................................
Series
2018-C8,
Class
A4,
4.21%,
6/15/51,
Callable
6/15/28
@
100
...............
250
247
Series
2018-C8,
Class
XB,
0.20%,
6/15/51,
Callable
3/15/28
@
100(b)(c)
..........
1,600
4
Key
Commercial
Mortgage
Securities
Trust,
Series
2019-S2,
Class
A3,
3.47%,
6/15/52,
Callable
6/15/29
@
100(a)
............................................
192
183
KSL
Commercial
Mortgage
Trust,
Series
2026-HT3,
Class
A,
5.10%
(TSFR1M+150bps),
6/15/43(a)(c)(d)
....................................................
100
100
Morgan
Stanley
Capital
I
Trust,
Series
2018-MP,
Class
A,
4.42%,
7/11/40(a)(b)(c)
........
250
235
Velocity
Commercial
Capital
Loan
Trust
......................................
Series
2024-6,
Class
A,
5.81%,
12/25/54,
Callable
3/25/32
@
100(a)(b)
............
115
116
Series
2025-1,
Class
A,
6.03%,
2/25/55,
Callable
1/25/45
@
100(a)(b)
.............
104
105
VRTX
Trust
...........................................................
Series
2025-HQ,
Class
C,
6.12%,
8/5/42(a)(b)(c)
............................
130
128
Series
2025-HQ,
Class
D,
6.82%,
8/5/42(a)(b)(c)
............................
140
138
Wells
Fargo
Commercial
Mortgage
Trust,
Series
2026-1250B,
Class
C,
5.59%,
3/10/41(a)(b)(c)
100
99
4,786
Private
CMO
Floating
(0.9%):
Connecticut
Avenue
Securities
Trust
.........................................
Series
2022-R02,
Class
2M2,
6.63%
(SOFR30A+300bps),
1/25/42,
Callable
1/25/27
@
100(a)(d)
.........................................................
78
78
Series
2024-R03,
Class
2M2,
5.58%
(SOFR30A+195bps),
3/25/44,
Callable
3/25/29
@
100(a)(d)
.........................................................
90
91
Series
2024-R05,
Class
2M2,
5.33%
(SOFR30A+170bps),
7/25/44,
Callable
7/25/29
@
100(a)(d)
.........................................................
71
71
Eagle
RE
Ltd.,
Series
2023-1,
Class
M1B,
7.58%
(SOFR30A+395bps),
9/26/33,
Callable
9/25/28
@
100(a)(d)
.................................................
196
200
Federal
Home
Loan
Mortgage
Corporation
MSCR
Trust,
Series
2021-MN3,
Class
M2,
7.63%
(SOFR30A+400bps),
11/25/51,
Callable
7/25/36
@
100(a)(d)
...................
225
230
Federal
Home
Loan
Mortgage
Corporation
STACR
REMIC
Trust
....................
Series
2024-DNA3,
Class
A1,
4.68%
(SOFR30A+105bps),
10/25/44,
Callable
10/25/29
@
100(a)(d)
.......................................................
100
100
Series
2026-HQA1,
Class
A1,
4.63%
(SOFR30A+100bps),
5/25/46,
Callable
5/25/31
@
100(a)(d)
.........................................................
87
87
Series
2026-HQA1,
Class
M1,
4.88%
(SOFR30A+125bps),
5/25/46,
Callable
5/25/31
@
100(a)(d)
.........................................................
118
119
Radnor
Re
Ltd.,
Series
2023-1,
Class
M1A,
6.33%
(SOFR30A+270bps),
7/25/33,
Callable
7/25/28
@
100(a)(d)
.................................................
—(h)
—(h)
Towd
Point
Mortgage
Trust,
Series
2019-HY1,
Class
B2,
5.91%
(TSFR1M+226bps),
10/25/48,
Callable
1/25/29
@
100(a)(d)
..........................................
140
145
Triangle
Re
Ltd.,
Series
2023-1,
Class
M1A,
7.03%
(SOFR30A+340bps),
11/25/33,
Callable
8/25/28
@
100(a)(d)
.................................................
37
37
1,158
Private
CMO
Other
(3.7%):
Ajax
Mortgage
Loan
Trust,
Series
2021-A,
Class
A1,
1.06%,
9/25/65,
Callable
7/25/26
@
100(a)(b)
.........................................................
86
78
BINOM
Securitization
Trust,
Series
2022-RPL1,
Class
M2,
3.00%,
2/25/61,
Callable
7/25/26
@
100(a)(b)
.......................................................
450
348
Bunker
Hill
Loan
Depositary
Trust,
Series
2020-1,
Class
A3,
3.25%,
2/25/55,
Callable
7/25/26
@
100(a)(b)
.......................................................
100
98
CFMT
LLC
...........................................................
Series
2024-HB14,
Class
M1,
3.00%,
6/25/34,
Callable
6/25/27
@
100(a)(b)
........
100
98
Series
2024-HB14,
Class
M2,
3.00%,
6/25/34,
Callable
6/25/27
@
100(a)(b)
........
100
97
CIM
Trust,
Series
2020-R2,
Class
M3,
3.00%,
10/25/59,
Callable
3/25/46
@
100(a)(b)
.....
180
141
Citigroup
Mortgage
Loan
Trust,
Series
2018-RP3,
Class
M3,
3.25%,
3/25/61,
Callable
12/25/37
@
100(a)(b)
................................................
400
348
CSMC
Trust
..........................................................
Series
2021-RPL2,
Class
M1,
2.75%,
1/25/60,
Callable
10/25/37
@
100(a)(b)
.......
200
149
Series
2021-RPL2,
Class
M2,
3.25%,
1/25/60,
Callable
10/25/37
@
100(a)(b)
.......
150
109
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Bond
VCT
Portfolio
6
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
June
30,
2026
See
notes
to
financial
statements.
Security
Description
Principal
Amount
(000)
a
Value
(000)
Federal
Home
Loan
Mortgage
Corporation,
Series
2018-4,
Class
M,
4.75%,
3/25/58,
Callable
5/25/50
@
100(a)
...................................................
$
327
$
321
GS
Mortgage-Backed
Securities
Trust,
Series
2022-PJ1,
Class
A4,
2.50%,
5/28/52,
Callable
6/25/40
@
100(a)(b)
.................................................
269
220
Hundred
Acre
Wood
Trust,
Series
2021-INV3,
Class
A3,
2.50%,
12/25/51,
Callable
5/25/44
@
100(a)(b)
.........................................................
402
332
Imperial
Fund
Mortgage
Trust
..............................................
Series
2021-NQM2,
Class
B1,
3.30%,
9/25/56,
Callable
7/25/26
@
100(a)(b)
........
100
75
Series
2021-NQM2,
Class
M1,
2.49%,
9/25/56,
Callable
7/25/26
@
100(a)(b)
.......
100
74
IMS
Ecuadorian
Mortgage
Trust,
Series
2021-1,
Class
GA,
3.40%,
8/18/43(a)
...........
193
186
JP
Morgan
Mortgage
Trust
................................................
Series
2019-HYB1,
Class
B3,
5.12%,
10/25/49,
Callable
12/25/27
@
100(a)(b)
......
206
206
Series
2021-INV1,
Class
B1,
2.97%,
10/25/51,
Callable
9/25/47
@
100(a)(b)
........
96
81
Series
2022-LTV1,
Class
M1,
3.51%,
7/25/52,
Callable
1/25/43
@
100(a)(b)
........
275
193
Mello
Mortgage
Capital
Acceptance
.........................................
Series
2021-INV2,
Class
A15,
2.50%,
8/25/51,
Callable
2/25/47
@
100(a)(b)
........
353
289
Series
2021-MTG2,
Class
B1,
2.66%,
6/25/51,
Callable
8/25/43
@
100(a)(b)
........
260
217
MFA
Trust,
Series
2020-NQM1,
Class
A3,
3.30%,
8/25/49,
Callable
7/25/26
@
100(a)(b)
...
22
22
Onity
Loan
Investment
Trust,
Series
2024-HB2,
Class
M2,
5.00%,
8/25/37,
Callable
8/25/27
@
100(a)(b)
.........................................................
130
128
PRMI
Securitization
Trust,
Series
2021-1,
Class
B1,
2.47%,
4/25/51,
Callable
10/25/47
@
100(a)(b)
.........................................................
301
246
Provident
Funding
Mortgage
Trust,
Series
2021-J1,
Class
B1,
2.63%,
10/25/51,
Callable
7/25/45
@
100(a)(b)
.................................................
170
147
RCKT
Mortgage
Trust,
Series
2021-3,
Class
A25,
2.50%,
7/25/51,
Callable
7/25/42
@
100(a)
(b)
.............................................................
264
216
RMF
Proprietary
Issuance
Trust,
Series
2019-1,
Class
A,
2.75%,
10/25/63(a)(b)
..........
49
47
Sequoia
Mortgage
Trust,
Series
2018-CH3,
Class
A1,
4.50%,
8/25/48,
Callable
7/25/26
@
100(a)(b)
.........................................................
1
1
Towd
Point
Mortgage
Trust,
Series
2021-R1,
Class
A1,
2.92%,
11/30/60(a)(b)
...........
322
287
4,754
Total
Collateralized
Mortgage
Obligations
(Cost
$13,013)
a
a
a
11,654
Shares
Preferred
Stocks
(0.4%)
Financials
(0.4%):
Bank
of
America
Corp.,
Series
LL,
5.00%(i)
....................................
5,104
103
Capital
One
Financial
Corp.,
Series
L,
4.38%(i)
.................................
1,158
18
JPMorgan
Chase
&
Co.,
Series
MM,
4.20%(i)
..................................
7,750
133
KeyCorp,
Series
G,
5.63%(i)
...............................................
2,065
43
Morgan
Stanley,
Series
O,
4.25%(i)
..........................................
8,529
145
State
Street
Corp.,
Series
G,
5.35%(i)
........................................
1,316
28
U.S.
Bancorp,
Series
L,
3.75%(i)
............................................
1,251
18
Wells
Fargo
&
Co.,
Series
DD,
4.25%(i)
......................................
5,192
87
575
Total
Preferred
Stocks
(Cost
$602)
a
a
a
575
Principal
Amount
(000)
Senior
Secured
Loans
(0.1%)
Financials
(0.0%):(f)
LC
Ahab
US
Bidco
LLC,
Second
Amendment
Incremental
Term
Loan,
First
Lien,
6.14%
(SOFR01M+250bps),
4/14/31(d)
........................................
$
29
29
Materials
(0.1%):
Schweitzer-Mauduit
International,
Inc.,
New
Term
Loan
B,
8.14%
(SOFR01M+450bps),
3/30/33(d)
........................................................
45
46
Total
Senior
Secured
Loans
(Cost
$75)
a
a
a
75
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Bond
VCT
Portfolio
7
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
June
30,
2026
See
notes
to
financial
statements.
Security
Description
Principal
Amount
(000)
a
Value
(000)
Corporate
Bonds
(26.0%)
Communication
Services
(0.7%):
Alphabet,
Inc.,
5.30%,
5/15/65,
Callable
11/15/64
@
100
..........................
$
110
$
101
Meta
Platforms,
Inc.
6.20%,
5/15/46,
Callable
11/15/45
@
100
..................................
280
280
5.63%,
11/15/55,
Callable
5/15/55
@
100
..................................
100
90
5.75%,
11/15/65,
Callable
5/15/65
@
100
..................................
170
153
Omnicom
Group,
Inc.,
5.00%,
6/2/33,
Callable
4/2/33
@
100
.......................
185
182
Space
Exploration
Technologies
Corp.,
5.65%,
7/15/33,
Callable
5/15/33
@
100(a)
........
130
129
935
Consumer
Discretionary
(1.6%):
Avis
Budget
Car
Rental
LLC/Avis
Budget
Finance,
Inc.,
8.38%,
6/15/32,
Callable
6/15/28
@
104.19(a)
.........................................................
25
25
Daimler
Truck
Finance
North
America
LLC
4.15%,
1/12/29,
Callable
12/12/28
@
100(a)
...............................
150
148
4.65%,
10/12/30,
Callable
9/12/30
@
100(a)
...............................
150
149
Darden
Restaurants,
Inc.,
6.30%,
10/10/33,
Callable
7/10/33
@
100
...................
264
281
Expedia
Group,
Inc.,
5.50%,
4/15/36,
Callable
1/15/36
@
100
.......................
265
262
Ford
Motor
Co.,
6.10%,
8/19/32,
Callable
5/19/32
@
100
..........................
125
127
General
Motors
Financial
Co.,
Inc.,
5.75%,
2/8/31,
Callable
12/8/30
@
100
.............
85
88
Hilton
Grand
Vacations
Borrower
LLC/Hilton
Grand
Vacations
Borrower,
Inc.,
6.63%,
1/15/32,
Callable
1/15/27
@
103.31(a)
..........................................
135
137
HOA
RoyaltyCo
LLC,
4.72%,
11/22/55,
Callable
8/1/26
@
100(a)(g)(j)
................
195
41
Lennar
Corp.,
5.20%,
7/30/30,
Callable
6/30/30
@
100
............................
195
197
Mobility
Global,
Inc.,
5.45%,
6/15/31,
Callable
5/15/31
@
100(a)
....................
50
51
Resorts
World
Las
Vegas
LLC/RWLV
Capital,
Inc.,
4.63%,
4/16/29,
Callable
1/16/29
@
100(a)
400
362
ZF
North
America
Capital,
Inc.,
6.88%,
4/14/28,
Callable
3/14/28
@
100(a)
.............
150
153
2,021
Consumer
Staples
(0.9%):
Albertsons
Cos.,
Inc./Safeway,
Inc./New
Albertsons
LP/Albertsons
LLC
5.50%,
3/31/31,
Callable
11/15/27
@
102.75(a)
.............................
70
68
5.75%,
3/31/34,
Callable
11/15/28
@
102.88(a)
.............................
185
176
Dollar
Tree,
Inc.,
2.65%,
12/1/31,
Callable
9/1/31
@
100
...........................
375
335
Smithfield
Foods,
Inc.
5.20%,
4/1/29,
Callable
1/1/29
@
100(a)
..................................
21
21
3.00%,
10/15/30,
Callable
7/15/30
@
100(a)
...............................
200
184
2.63%,
9/13/31,
Callable
6/13/31
@
100(a)
................................
220
194
Sysco
Corp.,
4.40%,
7/25/31,
Callable
6/25/31
@
100
.............................
140
137
1,115
Energy
(2.4%):
Archrock
Services
LP/Archrock
Partners
Finance
Corp.,
6.00%,
2/1/34,
Callable
2/1/29
@
103(a)
...........................................................
35
35
Boardwalk
Pipelines
LP,
3.60%,
9/1/32,
Callable
6/1/32
@
100
......................
75
69
Columbia
Pipelines
Holding
Co.
LLC
5.10%,
10/1/31,
Callable
8/1/31
@
100(a)
.................................
110
110
5.00%,
11/17/32,
Callable
9/17/32
@
100(a)
................................
150
148
Columbia
Pipelines
Operating
Co.
LLC,
5.51%,
5/15/36,
Callable
2/15/36
@
100(a)
.......
25
25
ConocoPhillips
Co.,
5.65%,
1/15/65,
Callable
6/15/64
@
100
.......................
180
173
Energy
Transfer
LP,
5.35%,
1/15/36,
Callable
10/15/35
@
100
.......................
95
95
Harvest
Midstream
I
LP,
6.75%,
5/15/34,
Callable
5/15/29
@
103.38(a)
................
30
30
Hess
Midstream
Operations
LP,
5.88%,
3/1/28,
Callable
7/12/26
@
102.94(a)
............
40
40
Hilcorp
Energy
I
LP/Hilcorp
Finance
Co.
6.88%,
5/15/34,
Callable
5/15/29
@
103.44(a)
..............................
195
190
7.25%,
2/15/35,
Callable
2/15/30
@
103.63(a)
..............................
80
79
Kodiak
Gas
Services
LLC,
5.88%,
4/1/31,
Callable
4/1/28
@
102.94(a)
................
30
30
MPLX
LP
5.50%,
6/1/34,
Callable
3/1/34
@
100
....................................
225
228
5.30%,
4/1/36,
Callable
1/1/36
@
100
....................................
110
108
NGPL
PipeCo
LLC
3.25%,
7/15/31,
Callable
4/15/31
@
100(a)
................................
230
212
5.60%,
8/15/36,
Callable
2/15/36
@
100(a)
................................
35
35
Phillips
66
Co.,
5.25%,
6/15/31,
Callable
4/15/31
@
100
...........................
290
295
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Bond
VCT
Portfolio
8
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
June
30,
2026
See
notes
to
financial
statements.
Security
Description
Principal
Amount
(000)
a
Value
(000)
Shell
Finance
US,
Inc.,
4.75%,
1/6/36,
Callable
10/6/35
@
100
......................
$
300
$
294
The
Williams
Cos.,
Inc.
7.50%,
1/15/31
....................................................
250
278
7.75%,
6/15/31
....................................................
89
100
Valero
Energy
Corp.
5.15%,
2/15/30,
Callable
1/15/30
@
100
..................................
35
36
6.63%,
6/15/37
....................................................
312
343
Venture
Global
Plaquemines
LNG
LLC,
6.50%,
1/15/34,
Callable
7/15/33
@
100(a)
.......
80
83
3,036
Financials
(10.4%):
AEGON
Funding
Co.
LLC,
5.63%,
5/7/36,
Callable
2/7/36
@
100
....................
215
214
Affiliated
Managers
Group,
Inc.,
5.50%,
2/15/36,
Callable
11/15/35
@
100
..............
450
445
Ally
Financial,
Inc.
6.18%
(SOFR+229bps),
7/26/35,
Callable
7/26/34
@
100(d)
....................
110
112
6.65%
(H15T5Y+245bps),
1/17/40,
Callable
10/19/34
@
100(d)
.................
110
109
American
Honda
Finance
Corp.
5.05%,
7/10/31
....................................................
310
311
4.85%,
10/23/31
....................................................
255
253
5.10%,
1/8/36
.....................................................
330
324
Ameriprise
Financial,
Inc.,
4.80%,
6/15/31,
Callable
5/15/31
@
100
...................
30
30
Bank
of
America
Corp.,
2.57%
(SOFR+121bps),
10/20/32,
Callable
10/20/31
@
100(d)
....
375
334
BMW
US
Capital
LLC,
5.40%,
3/21/35,
Callable
12/21/34
@
100(a)
..................
360
361
Brown
&
Brown,
Inc.,
4.20%,
3/17/32,
Callable
12/17/31
@
100
.....................
185
176
Capital
One
Financial
Corp.
2.36%
(SOFR+134bps),
7/29/32,
Callable
7/29/31
@
100(d)
....................
285
247
6.18%
(SOFR+204bps),
1/30/36,
Callable
1/30/35
@
100(d)
....................
90
92
Chpe
LLC,
4.88%,
6/30/31,
Callable
5/30/31
@
100(a)
............................
80
80
Citadel
Securities
Global
Holdings
LLC,
6.20%,
6/18/35,
Callable
3/18/35
@
100(a)
.......
295
301
Citigroup,
Inc.,
2.52%
(SOFR+118bps),
11/3/32,
Callable
11/3/31
@
100(d)
.............
250
222
Citizens
Financial
Group,
Inc.,
5.30%
(H15T5Y+145bps),
1/29/36,
Callable
1/29/31
@
100(d)
15
15
CNO
Financial
Group,
Inc.,
6.45%,
6/15/34,
Callable
3/15/34
@
100
..................
35
36
CNO
Global
Funding
4.88%,
12/10/27(a)
..................................................
25
25
2.65%,
1/6/29(a)
...................................................
470
445
Equitable
America
Global
Funding,
5.13%,
6/15/31(a)
............................
325
326
Farmers
Exchange
Capital
III,
5.45%
(TSFR3M+372bps),
10/15/54,
Callable
10/15/34
@
100(a)(d)
.........................................................
240
223
Farmers
Insurance
Exchange
4.75%
(SOFR03M+323bps),
11/1/57,
Callable
11/1/37
@
100(a)(d)
...............
340
289
7.00%
(H15T10Y+386bps),
10/15/64,
Callable
7/15/54
@
100(a)(d)
..............
130
131
Fifth
Third
Bank
NA,
5.33%
(SOFR+261bps),
8/25/33,
Callable
8/25/32
@
100(d)
........
365
365
Ford
Motor
Credit
Co.
LLC
7.35%,
3/6/30,
Callable
1/6/30
@
100
....................................
200
211
3.63%,
6/17/31,
Callable
3/17/31
@
100
..................................
200
182
6.05%,
11/5/31,
Callable
9/5/31
@
100
...................................
410
415
6.53%,
3/19/32,
Callable
1/19/32
@
100
..................................
200
207
6.13%,
3/8/34,
Callable
12/8/33
@
100
...................................
200
201
Freedom
Mortgage
Holdings
LLC
9.13%,
5/15/31,
Callable
5/15/27
@
104.56(a)
..............................
165
171
8.38%,
4/1/32,
Callable
4/1/28
@
104.19(a)
................................
25
25
FS
KKR
Capital
Corp.,
7.50%,
8/1/31,
Callable
5/1/31
@
100
.......................
90
90
Goldman
Sachs
Bank
USA,
4.66%
(SOFR+72bps),
6/3/29,
Callable
6/3/28
@
100(d)
......
215
215
Huntington
Bancshares,
Inc.,
5.27%
(SOFR+128bps),
1/15/31,
Callable
1/15/30
@
100(d)
...
105
106
HUT
8
DC
LLC,
6.19%,
11/15/42,
Callable
5/15/42
@
100(a)
.......................
85
86
Hyundai
Capital
America,
Inc.
5.30%,
1/8/30,
Callable
12/8/29
@
100(a)
.................................
160
162
5.80%,
4/1/30,
Callable
2/1/30
@
100(a)
..................................
295
304
6.20%,
9/21/30,
Callable
7/21/30
@
100(a)
................................
115
120
JPMorgan
Chase
&
Co.,
5.19%
(SOFR+130bps),
2/5/37,
Callable
2/5/36
@
100(d)
........
160
157
KeyCorp,
5.12%
(SOFRINDX+123bps),
4/4/31,
Callable
4/4/30
@
100(d)
..............
125
126
Liberty
Mutual
Insurance
Co.,
7.70%,
10/15/97(a)
...............................
456
512
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Bond
VCT
Portfolio
9
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
June
30,
2026
See
notes
to
financial
statements.
Security
Description
Principal
Amount
(000)
a
Value
(000)
Lincoln
Financial
Global
Funding
4.20%,
1/12/29(a)
..................................................
$
55
$
54
4.95%,
5/21/31(a)
..................................................
75
75
Lincoln
National
Corp.
5.35%,
11/15/35,
Callable
8/15/35
@
100
..................................
55
54
6.80%
(H15T5Y+240bps),
7/15/56,
Callable
4/15/36
@
100(d)
..................
45
45
Loews
Corp.,
4.94%,
4/1/36,
Callable
1/1/36
@
100
..............................
255
250
Massachusetts
Mutual
Life
Insurance
Co.,
5.95%,
6/1/56,
Callable
12/1/55
@
100(a)
......
215
213
MetLife,
Inc.,
5.85%
(H15T5Y+182bps),
3/15/56,
Callable
3/15/36
@
100(d)
............
105
104
Morgan
Stanley
5.95%
(H15T5Y+243bps),
1/19/38,
Callable
1/19/33
@
100(d)
..................
60
62
5.94%
(H15T5Y+180bps),
2/7/39,
Callable
2/7/34
@
100(d)
....................
165
170
Morgan
Stanley
Bank
NA,
4.79%
(SOFRINDX+97bps),
5/10/30,
Callable
5/10/29
@
100(d)
.
250
250
MSCI,
Inc.,
5.25%,
9/1/35,
Callable
6/1/35
@
100
...............................
70
69
Mutual
of
Omaha
Cos.
Global
Funding
5.00%,
4/1/30(a)
...................................................
145
146
4.55%,
1/13/31(a)
..................................................
295
291
Northern
Trust
Corp.,
5.12%
(H15T5Y+105bps),
11/19/40,
Callable
11/19/35
@
100(d)
....
85
83
Old
National
Bancorp,
5.77%
(TSFR3M+220bps),
2/15/36,
Callable
2/15/31
@
100(d)
.....
25
25
OneMain
Finance
Corp.,
4.00%,
9/15/30,
Callable
8/1/26
@
102
.....................
404
373
Pinnacle
Financial
Partners,
Inc.,
5.60%
(SOFR+170bps),
5/19/32,
Callable
5/19/31
@
100(d)
65
65
Primerica,
Inc.,
2.80%,
11/19/31,
Callable
8/19/31
@
100
..........................
86
77
Prudential
Financial,
Inc.,
6.25%
(H15T5Y+178bps),
6/15/56,
Callable
3/15/36
@
100(d)
...
75
75
Regions
Bank,
4.75%
(SOFR+81bps),
7/27/29,
Callable
7/27/28
@
100(d)
..............
250
250
Rocket
Cos.,
Inc.
6.50%,
8/1/29,
Callable
8/1/26
@
103.25(a)
................................
125
128
6.13%,
8/1/31,
Callable
8/1/28
@
103.06(a)
................................
25
26
6.50%,
6/15/34,
Callable
6/15/29
@
103.25(a)
..............................
20
20
Santander
Holdings
USA,
Inc.
2.49%
(SOFR+125bps),
1/6/28,
Callable
1/6/27
@
100(d)
......................
210
208
5.04%
(SOFR+110bps),
6/5/30,
Callable
6/5/29
@
100(d)
......................
80
80
Starwood
Property
Trust,
Inc.
5.88%,
8/15/29,
Callable
5/15/29
@
100(a)
................................
20
20
5.75%,
1/15/31,
Callable
7/15/30
@
100(a)
................................
55
55
6.13%,
6/1/31,
Callable
12/1/30
@
100(a)
.................................
50
50
Teachers
Insurance
&
Annuity
Association
of
America,
6.85%,
12/16/39(a)
.............
26
29
The
Goldman
Sachs
Group,
Inc.
4.97%
(SOFR+103bps),
6/3/32,
Callable
6/3/31
@
100(d)
......................
130
130
2.65%
(SOFR+126bps),
10/21/32,
Callable
10/21/31
@
100(d)
..................
235
209
The
PNC
Financial
Services
Group,
Inc.,
5.42%
(H15T5Y+117bps),
1/25/41,
Callable
1/25/36
@
100(d)
.........................................................
65
64
Toyota
Motor
Credit
Corp.,
4.60%,
3/11/33
....................................
170
167
Truist
Financial
Corp.,
4.60%
(SOFR+97bps),
1/27/32,
Callable
1/27/31
@
100(d)
........
110
108
U.S.
Bancorp,
2.49%
(H15T5Y+95bps),
11/3/36,
Callable
11/3/31
@
100(d)
............
595
518
Velocity
Vehicle
Group
LLC,
8.00%,
6/1/29,
Callable
8/1/26
@
104(a)
.................
30
30
Wells
Fargo
&
Co.,
5.24%
(SOFR+111bps),
1/24/31,
Callable
1/24/30
@
100(d)
..........
95
96
13,425
Health
Care
(1.1%):
Baxter
International,
Inc.,
4.90%,
12/15/30,
Callable
11/15/30
@
100
..................
35
35
CVS
Health
Corp.
5.25%,
1/30/31,
Callable
11/30/30
@
100
..................................
35
36
5.25%,
2/21/33,
Callable
11/21/32
@
100
..................................
260
264
DENTSPLY
SIRONA,
Inc.,
8.37%
(H15T5Y+438bps),
9/12/55,
Callable
6/12/30
@
100(d)
.
198
198
Elevance
Health,
Inc.,
5.38%,
6/15/34,
Callable
3/15/34
@
100
......................
65
66
Eli
Lilly
&
Co.,
5.55%,
10/15/55,
Callable
4/15/55
@
100
..........................
70
70
GE
Healthcare
Technologies,
Inc.,
5.50%,
6/15/35,
Callable
3/15/35
@
100
.............
100
102
HCA,
Inc.,
5.50%,
3/1/32,
Callable
1/1/32
@
100
................................
165
168
Health
Care
Service
Corp.
A
Mutual
Legal
Reserve
Co.,
5.20%,
6/15/29,
Callable
5/15/29
@
100(a)
...........................................................
75
76
Highmark,
Inc.,
5.75%,
5/15/36,
Callable
2/15/36
@
100(a)
.........................
70
70
Humana,
Inc.,
5.38%,
4/15/31,
Callable
2/15/31
@
100
............................
75
76
Merck
&
Co.,
Inc.,
5.20%,
5/22/36,
Callable
2/22/36
@
100
........................
150
152
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Bond
VCT
Portfolio
10
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
June
30,
2026
See
notes
to
financial
statements.
Security
Description
Principal
Amount
(000)
a
Value
(000)
Zoetis,
Inc.,
5.00%,
8/17/35,
Callable
5/17/35
@
100
.............................
$
165
$
163
1,476
Industrials
(1.8%):
AECOM,
6.00%,
8/1/33,
Callable
8/1/28
@
103(a)
...............................
205
205
Alaska
Airlines,
Inc.,
6.50%,
6/1/31,
Callable
12/1/30
@
100(a)
......................
125
126
American
Airlines
Pass
Through
Trust,
3.95%,
7/11/30
............................
31
30
Core
&
Main
LP,
6.00%,
7/1/34,
Callable
7/1/29
@
103(a)
.........................
35
35
Delta
Air
Lines,
Inc./SkyMiles
IP
Ltd.,
4.75%,
10/20/28(a)
.........................
71
71
GE
Vernova,
Inc.,
4.88%,
2/4/36,
Callable
11/4/35
@
100
..........................
105
103
Honeywell
Aerospace,
Inc.
4.60%,
3/16/33,
Callable
1/16/33
@
100(a)
................................
60
59
4.95%,
3/16/36,
Callable
12/16/35
@
100(a)
...............................
125
123
Hubbell,
Inc.,
5.15%,
6/15/36,
Callable
3/15/36
@
100
............................
135
134
JetBlue
Pass
Through
Trust
2.75%,
5/15/32
....................................................
113
100
4.00%,
11/15/32
....................................................
39
37
Johnsonville
Aeroderivative
Combustion
Turbine
Generation
LLC,
5.08%,
10/1/54
........
162
153
Kennametal,
Inc.
2.80%,
3/1/31,
Callable
12/1/30
@
100
...................................
125
113
5.80%,
5/28/36,
Callable
2/28/36
@
100
..................................
30
30
Komatsu
Finance
America,
Inc.,
4.20%,
9/18/30,
Callable
8/18/30
@
100(a)
.............
200
196
Qxo
Building
Products,
Inc.
6.50%,
7/15/31,
Callable
7/15/28
@
103.25(a)
..............................
20
20
6.88%,
7/15/34,
Callable
7/15/29
@
103.44(a)
..............................
20
21
Regal
Rexnord
Corp.,
6.30%,
2/15/30,
Callable
12/15/29
@
100
.....................
125
130
Textron,
Inc.,
5.50%,
5/15/35,
Callable
2/15/35
@
100
............................
205
209
Trans-Allegheny
Interstate
Line
Co.,
5.00%,
1/15/31,
Callable
12/15/30
@
100(a)
.........
35
35
United
Airlines
Holdings,
Inc.
4.88%,
3/1/29,
Callable
12/1/28
@
100
...................................
175
173
5.38%,
3/1/31,
Callable
9/1/30
@
100
....................................
40
40
United
Airlines
Pass
Through
Trust,
5.45%,
2/15/37
..............................
94
96
Verisk
Analytics,
Inc.
4.45%,
3/15/31,
Callable
2/15/31
@
100
..................................
27
26
5.25%,
3/15/35,
Callable
12/15/34
@
100
.................................
70
70
2,335
Information
Technology
(2.3%):
Broadcom,
Inc.
4.60%,
7/15/30,
Callable
6/15/30
@
100
..................................
136
136
4.15%,
4/15/32,
Callable
1/15/32
@
100(a)
................................
130
125
4.30%,
11/15/32,
Callable
8/15/32
@
100
..................................
100
97
3.14%,
11/15/35,
Callable
8/15/35
@
100(a)
................................
35
30
3.19%,
11/15/36,
Callable
8/15/36
@
100(a)
................................
475
398
Core
Scientific
Finance
I
LLC,
7.75%,
5/15/31,
Callable
5/15/28
@
103.88(a)
...........
75
76
CoreWeave,
Inc.,
9.00%,
2/1/31,
Callable
2/1/28
@
104.5(a)
........................
210
207
Dell
International
LLC/EMC
Corp.,
4.75%,
7/15/31,
Callable
6/15/31
@
100
............
50
50
ERP
Operating
LP,
4.95%,
6/15/32,
Callable
4/15/32
@
100
........................
70
70
ESC
Gab,
8/20/51(e)(g)
..................................................
200
—
Intel
Corp.,
5.30%,
5/15/36,
Callable
2/15/36
@
100
..............................
80
80
Oracle
Corp.
5.95%,
9/26/55,
Callable
3/26/55
@
100
..................................
235
200
6.70%,
2/4/56,
Callable
8/4/55
@
100
....................................
610
574
6.85%,
2/4/66,
Callable
8/4/65
@
100
....................................
155
144
Qnity
Electronics,
Inc.
5.75%,
8/15/32,
Callable
8/15/28
@
102.88(a)
..............................
70
70
6.25%,
8/15/33,
Callable
8/15/28
@
103.13(a)
..............................
70
71
Roper
Technologies,
Inc.
4.75%,
2/15/32,
Callable
12/15/31
@
100
.................................
110
109
4.90%,
10/15/34,
Callable
7/15/34
@
100
.................................
180
174
Skyworks
Solutions,
Inc.,
3.00%,
6/1/31,
Callable
3/1/31
@
100
.....................
313
281
2,892
Materials
(0.6%):
Celanese
US
Holdings
LLC,
7.70%,
11/15/33,
Callable
8/15/33
@
100
.................
55
59
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Bond
VCT
Portfolio
11
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
June
30,
2026
See
notes
to
financial
statements.
Security
Description
Principal
Amount
(000)
a
Value
(000)
Cleveland
Cliffs,
Inc.
7.00%,
3/15/32,
Callable
3/15/27
@
103.5(a)
...............................
$
90
$
89
7.63%,
1/15/34,
Callable
1/15/29
@
103.81(a)
..............................
140
140
Commercial
Metals
Co.,
6.00%,
12/15/35,
Callable
12/15/30
@
103(a)
................
70
70
Novelis
Corp.,
6.38%,
8/15/33,
Callable
8/15/28
@
103.19(a)
.......................
76
76
Southern
Copper
Corp.,
5.35%,
6/24/36,
Callable
3/24/36
@
100
.....................
345
343
777
Real
Estate
(1.2%):
Americold
Realty
Operating
Partnership
LP,
5.60%,
5/15/32,
Callable
3/15/32
@
100
......
55
55
Beacon
Point
DC
LLC,
6.13%,
11/30/42,
Callable
5/30/42
@
100(a)
..................
155
156
CBRE
Services,
Inc.,
4.90%,
1/15/33,
Callable
11/15/32
@
100
......................
40
40
COPT
Defense
Properties
LP,
4.50%,
10/15/30,
Callable
9/15/30
@
100
................
50
49
Cousins
Properties
LP,
4.88%,
3/1/33,
Callable
1/1/33
@
100
.......................
100
97
Healthcare
Realty
Holdings
LP,
3.10%,
2/15/30,
Callable
11/15/29
@
100
..............
255
240
Highwoods
Realty
LP
4.13%,
3/15/28,
Callable
12/15/27
@
100
.................................
41
40
3.05%,
2/15/30,
Callable
11/15/29
@
100
..................................
15
14
2.60%,
2/1/31,
Callable
11/1/30
@
100
...................................
47
42
5.35%,
1/15/33,
Callable
11/15/32
@
100
..................................
30
30
Invitation
Homes
Operating
Partnership
LP,
4.95%,
1/15/33,
Callable
11/15/32
@
100
.....
105
104
LXP
Industrial
Trust
2.70%,
9/15/30,
Callable
6/15/30
@
100
..................................
165
150
2.38%,
10/1/31,
Callable
7/1/31
@
100
...................................
285
249
UDR,
Inc.,
4.40%,
1/26/29,
Callable
10/26/28
@
100
.............................
180
179
Ventas
Realty
LP,
5.10%,
7/15/32,
Callable
5/15/32
@
100
.........................
115
116
1,561
Utilities
(3.0%):
Alta
Wind
Holdings
LLC,
7.00%,
6/30/35(a)
...................................
35
34
American
Electric
Power
Co.,
Inc.
5.80%
(H15T5Y+213bps),
3/15/56,
Callable
12/15/30
@
100(d)
.................
190
189
6.05%
(H15T5Y+194bps),
3/15/56,
Callable
12/15/35
@
100(d)
.................
85
84
Basin
Electric
Power
Cooperative,
5.85%,
10/15/55,
Callable
4/15/55
@
100
............
55
54
Consolidated
Edison
Co.
of
New
York,
Inc.,
5.88%,
6/15/56,
Callable
12/15/55
@
100
.....
150
151
Cumberland
Combined
Cycle
Generation
LLC,
5.82%,
5/15/56
......................
70
72
Dominion
Energy,
Inc.
5.35%,
6/15/36,
Callable
3/15/36
@
100
..................................
70
70
6.25%
(H15T5Y+170bps),
12/15/56,
Callable
9/16/36
@
100(d)
.................
55
55
Duke
Energy
Carolinas
LLC,
5.15%,
6/15/36,
Callable
3/15/36
@
100
.................
95
95
Entergy
Louisiana
LLC,
5.35%,
3/15/34,
Callable
12/15/33
@
100
....................
194
199
Entergy
Texas,
Inc.,
5.25%,
4/15/35,
Callable
1/15/35
@
100
........................
55
55
Essential
Utilities,
Inc.,
5.13%,
3/15/36,
Callable
12/15/35
@
100
....................
70
69
Eversource
Energy
6.10%
(H15T5Y+252bps),
8/15/56,
Callable
5/15/31
@
100(d)
..................
55
55
6.35%
(H15T5Y+233bps),
8/15/56,
Callable
5/15/36
@
100(d)
..................
30
30
ITC
Holdings
Corp.,
5.65%,
5/9/34,
Callable
2/9/34
@
100(a)
.......................
160
164
Kentucky
Utilities
Co.,
5.85%,
8/15/55,
Callable
2/15/55
@
100
.....................
70
70
Liberty
Utilities
Co.,
5.65%,
5/15/36,
Callable
2/15/36
@
100(a)
.....................
160
159
Monongahela
Power
Co.,
5.85%,
2/15/34,
Callable
11/15/33
@
100(a)
.................
130
136
NextEra
Energy
Capital
Holdings,
Inc.
6.20%
(H15T5Y+177bps),
10/1/56,
Callable
7/4/36
@
100(d)
...................
60
60
6.63%
(H15T5Y+169bps),
10/1/66,
Callable
7/4/46
@
100(d)
...................
60
61
NRG
Energy,
Inc.,
6.13%,
5/15/36,
Callable
5/15/31
@
103.06(a)
....................
141
141
Public
Service
Co.
of
Colorado,
5.15%,
9/15/35,
Callable
3/15/35
@
100
...............
300
298
Public
Service
Enterprise
Group,
Inc.
4.80%,
6/15/31,
Callable
5/15/31
@
100
..................................
60
60
5.40%,
3/15/35,
Callable
12/15/34
@
100
.................................
70
71
Puget
Energy,
Inc.
4.10%,
6/15/30,
Callable
3/15/30
@
100
..................................
220
213
4.22%,
3/15/32,
Callable
12/15/31
@
100
.................................
55
53
San
Diego
Gas
&
Electric
Co.,
5.20%,
3/15/36,
Callable
12/15/35
@
100
...............
50
50
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Bond
VCT
Portfolio
12
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
June
30,
2026
See
notes
to
financial
statements.
Security
Description
Principal
Amount
(000)
a
Value
(000)
Sempra
6.55%
(H15T5Y+214bps),
4/1/55,
Callable
1/1/35
@
100(d)
....................
$
290
$
292
6.37%
(H15T5Y+263bps),
4/1/56,
Callable
1/1/31
@
100(d)
....................
65
66
Southern
California
Edison
Co.
5.45%,
6/1/31,
Callable
4/1/31
@
100
....................................
80
81
4.95%,
9/15/31,
Callable
8/15/31
@
100
..................................
80
80
Southern
Power
Co.,
4.80%,
6/15/31,
Callable
4/15/31
@
100
.......................
95
95
Spire,
Inc.,
6.45%
(H15T5Y+233bps),
6/1/56,
Callable
3/1/36
@
100(d)
...............
50
50
Talen
Energy
Supply
LLC
6.25%,
2/1/34,
Callable
10/15/28
@
103.13(a)
..............................
110
109
6.50%,
2/1/36,
Callable
10/15/30
@
103.25(a)
..............................
110
111
Vistra
Operations
Co.
LLC
4.60%,
10/15/30,
Callable
9/15/30
@
100(a)
...............................
90
89
4.70%,
1/31/31,
Callable
12/31/30
@
100(a)
...............................
30
29
5.35%,
1/31/36,
Callable
10/31/35
@
100(a)
...............................
40
39
WEC
Energy
Group,
Inc.,
5.63%
(H15T5Y+191bps),
5/15/56,
Callable
2/15/31
@
100(d)
...
35
35
3,824
Total
Corporate
Bonds
(Cost
$34,109)
a
a
a
33,397
Yankee
Dollars
(13.9%)
Communication
Services
(0.1%):
Orange
SA,
5.00%,
1/13/36,
Callable
10/13/35
@
100(a)
...........................
205
200
Consumer
Staples
(0.1%):
JBS
NV/JBS
USA
Foods
Group
Holdings,
Inc./JBS
USA
Food
Co.
Holdings
3.00%,
2/2/29,
Callable
12/2/28
@
100
...................................
120
115
3.00%,
5/15/32,
Callable
2/15/32
@
100
..................................
57
51
166
Energy
(0.9%):
Aker
BP
ASA,
5.25%,
10/30/35,
Callable
7/30/35
@
100(a)
........................
200
195
Enbridge,
Inc.
5.55%,
6/20/35,
Callable
3/20/35
@
100
..................................
190
193
7.20%
(H15T5Y+297bps),
6/27/54,
Callable
3/27/34
@
100(d)
..................
105
112
7.38%
(H15T5Y+312bps),
3/15/55,
Callable
12/15/29
@
100(d)
.................
105
111
8.50%
(H15T5Y+443bps),
1/15/84,
Callable
10/15/33
@
100(d)
.................
160
183
Nakilat,
Inc.,
6.27%,
12/31/33(a)
............................................
130
132
South
Bow
Canadian
Infrastructure
Holdings
Ltd.
7.50%
(H15T5Y+367bps),
3/1/55,
Callable
12/1/34
@
100(d)
...................
70
75
7.63%
(H15T5Y+395bps),
3/1/55,
Callable
12/1/29
@
100(d)
...................
117
123
TransCanada
PipeLines
Ltd.,
6.37%
(H15T5Y+212bps),
10/17/56,
Callable
7/17/36
@
100(d)
35
35
1,159
Financials
(9.2%):
ABN
AMRO
Bank
NV,
3.32%
(H15T5Y+190bps),
3/13/37,
Callable
12/13/31
@
100(a)(d)
..
200
180
AerCap
Ireland
Capital
DAC/AerCap
Global
Aviation
Trust,
3.30%,
1/30/32,
Callable
10/30/31
@
100
...........................................................
765
699
African
Development
Bank,
5.88%
(H15T5Y+165bps),
Callable
5/7/35
@
100(d)(i)
.......
400
394
Allianz
SE,
6.55%
(H15T5Y+232bps),
Callable
10/30/33
@
100(a)(d)(i)
...............
400
406
Australia
&
New
Zealand
Banking
Group
Ltd.,
5.73%
(H15T5Y+162bps),
9/18/34,
Callable
9/18/29
@
100(a)(d)
.................................................
270
275
Avolon
Holdings
Funding
Ltd.
6.38%,
5/4/28,
Callable
4/4/28
@
100(a)
..................................
330
338
5.75%,
3/1/29,
Callable
2/1/29
@
100(a)
..................................
41
42
5.38%,
5/30/30,
Callable
4/30/30
@
100(a)
................................
25
25
4.70%,
1/30/31,
Callable
12/30/30
@
100(a)
...............................
40
39
Banco
Bilbao
Vizcaya
Argentaria
SA,
7.12%
(H15T5Y+299bps),
Callable
5/8/33
@
100(d)(i)
200
203
Banco
Santander
SA
7.25%
(H15T5Y+284bps),
Callable
12/3/35
@
100(d)(i)
.......................
200
203
3.23%
(H15T1Y+160bps),
11/22/32,
Callable
8/22/31
@
100(d)
.................
600
543
5.44%,
4/15/36
....................................................
200
200
Banque
Federative
du
Credit
Mutuel
SA,
4.54%,
1/15/31(a)
........................
200
197
Banque
Ouest
Africaine
de
Developpement,
4.70%,
10/22/31,
Callable
7/22/31
@
100(a)
...
230
212
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Bond
VCT
Portfolio
13
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
June
30,
2026
See
notes
to
financial
statements.
Security
Description
Principal
Amount
(000)
a
Value
(000)
BNP
Paribas
SA
6.87%
(H15T5Y+285bps),
Callable
12/15/33
@
100(a)(d)(i)
....................
$
200
$
200
7.45%
(H15T5Y+313bps),
Callable
6/27/35
@
100(a)(d)(i)
.....................
295
304
2.16%
(SOFR+122bps),
9/15/29,
Callable
9/15/28
@
100(a)(d)
..................
255
241
BPCE
SA,
5.77%
(SOFR+163bps),
6/2/37,
Callable
6/2/36
@
100(a)(d)
................
250
251
Canadian
Imperial
Bank
of
Commerce,
4.63%
(SOFR+134bps),
9/11/30,
Callable
9/11/29
@
100(d)
...........................................................
230
229
Credit
Agricole
SA,
5.26%
(SOFR+143bps),
1/12/37,
Callable
1/12/36
@
100(a)(d)
.......
305
300
CRH
SMW
Finance
DAC,
5.13%,
1/9/30,
Callable
12/9/29
@
100
....................
200
203
Deutsche
Bank
AG
4.47%
(SOFR+110bps),
12/10/31,
Callable
12/10/30
@
100(d)
..................
150
148
5.06%
(SOFR+141bps),
4/14/32,
Callable
4/14/31
@
100(d)
....................
150
150
Federation
DES
Caisses
Desjardins
DU
Quebec,
5.02%,
5/27/31(a)
...................
245
247
HSBC
Holdings
PLC
2.21%
(SOFR+129bps),
8/17/29,
Callable
8/17/28
@
100(d)
....................
355
337
4.71%
(SOFR+94bps),
5/12/30,
Callable
5/12/29
@
100(d)
.....................
200
199
5.29%
(SOFR+129bps),
11/19/30,
Callable
11/19/29
@
100(d)
..................
205
208
2.87%
(SOFR+141bps),
11/22/32,
Callable
11/22/31
@
100(d)
..................
375
337
5.74%
(SOFR+196bps),
9/10/36,
Callable
9/10/35
@
100(d)
....................
200
201
5.28%
(SOFR+155bps),
3/10/37,
Callable
3/10/36
@
100(d)
....................
200
198
Macquarie
Bank
Ltd.,
5.82%
(H15T1Y+135bps),
6/10/37,
Callable
6/10/36
@
100(a)(d)
....
330
329
Manulife
Financial
Corp.,
4.99%,
12/11/35,
Callable
9/11/35
@
100
..................
120
118
Meiji
Yasuda
Life
Insurance
Co.,
6.10%
(H15T5Y+291bps),
6/11/55,
Callable
6/11/35
@
100(a)(d)
.........................................................
450
454
Mizuho
Financial
Group,
Inc.,
4.97%
(H15T1Y+83bps),
7/13/32,
Callable
7/13/31
@
100(d)
.
335
334
NatWest
Group
PLC,
6.48%
(H15T5Y+220bps),
6/1/34,
Callable
3/1/29
@
100(d)
........
200
207
Nippon
Life
Insurance
Co.,
2.90%
(H15T5Y+260bps),
9/16/51,
Callable
9/16/31
@
100(a)(d)
355
313
Nomura
Holdings,
Inc.,
5.55%,
7/14/36
.......................................
200
200
Societe
Generale
SA,
6.10%
(H15T1Y+160bps),
4/13/33,
Callable
4/13/32
@
100(a)(d)
....
375
390
Sumitomo
Life
Insurance
Co.,
5.87%
(H15T5Y+265bps),
9/10/55,
Callable
9/10/35
@
100(a)
(d)
.............................................................
420
418
Sumitomo
Mitsui
Financial
Group,
Inc.
4.49%
(SOFR+102bps),
1/15/32,
Callable
1/15/31
@
100(d)
....................
200
196
5.33%
(H15T5Y+130bps),
3/3/41,
Callable
3/3/36
@
100(d)
....................
150
146
The
Bank
of
Nova
Scotia,
4.81%
(SOFR+105bps),
2/2/34,
Callable
2/2/33
@
100(d)
.......
155
153
UBS
Group
AG,
2.75%
(H15T1Y+110bps),
2/11/33,
Callable
2/11/32
@
100(a)(d)
........
415
368
UniCredit
SpA
7.30%
(USISOA05+491bps),
4/2/34,
Callable
4/2/29
@
100(a)(d)
................
200
210
5.46%
(H15T5Y+475bps),
6/30/35,
Callable
6/30/30
@
100(a)(d)
................
240
241
11,786
Health
Care
(0.1%):
Teva
Pharmaceutical
Finance
Netherlands
III
BV,
5.13%,
5/9/29,
Callable
2/9/29
@
100
....
200
200
Industrials
(1.0%):
Air
Canada
Pass
Through
Trust,
3.30%,
1/15/30(a)
...............................
163
155
Czechoslovak
Group
AS,
6.50%,
1/10/31,
Callable
7/10/27
@
103.25(a)
...............
305
310
Danaos
Corp.,
6.88%,
10/15/32,
Callable
10/15/28
@
103.44(a)
......................
130
134
Element
Fleet
Management
Corp.
5.64%,
3/13/27,
Callable
2/13/27
@
100(a)
................................
75
75
4.80%,
5/29/29,
Callable
4/29/29
@
100(a)
................................
55
55
5.04%,
3/25/30,
Callable
2/25/30
@
100(a)
................................
275
277
4.64%,
11/24/30,
Callable
10/24/30
@
100(a)
...............................
90
89
Waste
Connections,
Inc.,
5.25%,
9/1/35,
Callable
6/1/35
@
100
......................
145
147
1,242
Information
Technology
(0.1%):
Flex
Ltd.,
5.38%,
11/13/35,
Callable
8/13/35
@
100
..............................
85
84
Materials
(0.4%):
AngloGold
Ashanti
Holdings
PLC,
3.75%,
10/1/30,
Callable
7/1/30
@
100
..............
335
317
Corp
Nacional
del
Cobre
de
Chile,
6.78%,
1/13/55,
Callable
7/13/54
@
100(a)
...........
200
215
532
Sovereign
Bond
(1.4%):
Indonesia
Government
International
Bond,
5.69%,
5/29/36,
Callable
2/29/36
@
100
.......
200
204
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Bond
VCT
Portfolio
14
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
June
30,
2026
See
notes
to
financial
statements.
Security
Description
Principal
Amount
(000)
a
Value
(000)
Kuwait
International
Government
Bond,
4.65%,
10/9/35(a)
.........................
$
500
$
488
Mexico
Government
International
Bond
5.63%,
2/9/34,
Callable
12/9/33
@
100
...................................
200
197
6.88%,
5/13/37,
Callable
2/13/37
@
100
..................................
200
210
Peruvian
Government
International
Bond,
5.50%,
3/30/36,
Callable
12/30/35
@
100
.......
320
323
Saudi
Government
International
Bond,
4.13%,
1/12/29(a)
..........................
345
339
1,761
Utilities
(0.6%):
Electricite
de
France
SA,
6.13%,
4/22/56,
Callable
10/22/55
@
100(a)
.................
370
365
Enel
Finance
International
NV,
5.00%,
9/30/35,
Callable
6/30/35
@
100(a)
..............
320
311
Hydro
One,
Inc.,
4.75%,
5/30/31,
Callable
4/30/31
@
100
..........................
70
70
746
Total
Yankee
Dollars
(Cost
$18,050)
a
a
a
17,876
U.S.
Government
Agency
Mortgages
(27.9%)
Federal
Home
Loan
Mortgage
Corporation
6.50%,
1/1/29
-
12/1/55
..............................................
1,477
1,545
3.50%,
7/1/29
-
3/1/48
...............................................
396
369
3.00%,
10/1/29
-
9/1/52
..............................................
342
307
7.00%,
2/1/31
-
8/1/54
...............................................
111
117
7.50%,
8/1/31
.....................................................
—(h)
–(h)
6.00%,
11/1/32
-
9/1/55
..............................................
1,274
1,318
5.00%,
5/1/40
-
3/1/44
...............................................
10
10
5.50%,
6/1/41
-
1/1/55
...............................................
547
553
1.50%,
3/1/42
.....................................................
1,077
897
4.00%,
10/1/42
-
6/1/50
..............................................
116
111
2.50%,
1/1/51
-
5/1/52
...............................................
959
814
6,041
Federal
National
Mortgage
Association
3.00%,
3/1/29
-
2/1/57
...............................................
862
768
6.00%,
9/1/29
-
8/1/54
...............................................
1,411
1,457
7.00%,
11/1/29
-
1/1/32
..............................................
1
1
2.50%,
7/1/30
-
4/1/52
...............................................
4,068
3,484
8.00%,
10/1/30
....................................................
1
1
7.50%,
2/1/31
.....................................................
—(h)
–(h)
5.00%,
5/1/31
-
4/1/53
...............................................
285
283
6.50%,
2/1/32
-
7/1/55
...............................................
1,019
1,064
5.50%,
9/1/33
-
7/1/56
...............................................
1,813
1,832
4.00%,
10/1/40
-
10/1/52
.............................................
748
708
3.50%,
10/1/41
-
4/1/52
..............................................
663
610
2.00%,
12/1/41
-
8/25/56
.............................................
882
745
4.50%,
9/1/43
-
9/1/52
...............................................
439
428
11,381
Federal
National
Mortgage
Association,
TBA
5.50%,
1/25/30
-
9/29/32
.............................................
2,900
2,927
5.00%,
8/16/30
-
1/9/34
..............................................
3,900
3,850
4.50%,
1/30/35
....................................................
1,400
1,340
3.50%,
2/28/35
....................................................
2,700
2,448
4.00%,
4/24/35
....................................................
900
841
3.00%,
6/9/35
.....................................................
1,300
1,133
12,539
Government
National
Mortgage
Association
7.50%,
8/20/27
-
10/15/29
.............................................
—(h)
–(h)
7.00%,
9/15/27
-
8/15/31
.............................................
4
4
6.00%,
4/15/28
-
4/20/55
.............................................
579
593
6.50%,
6/15/28
-
12/15/32
.............................................
21
19
5.50%,
3/15/33
-
9/20/52
.............................................
79
80
4.50%,
5/15/39
-
2/20/48
.............................................
212
208
4.00%,
8/20/39
-
4/20/48
.............................................
361
344
3.50%,
11/15/41
-
11/20/46
............................................
233
216
5.00%,
9/20/47
....................................................
91
92
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Bond
VCT
Portfolio
15
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
June
30,
2026
See
notes
to
financial
statements.
Security
Description
Principal
Amount
(000)
a
Value
(000)
2.00%,
7/20/51
....................................................
$
258
$
212
3.00%,
6/20/52
....................................................
250
223
2.50%,
9/20/54
....................................................
336
288
2,279
Government
National
Mortgage
Association,
TBA
6.50%,
5/18/29
....................................................
600
622
5.50%,
8/15/32
....................................................
700
703
5.00%,
9/15/32
....................................................
600
591
3.00%,
7/5/34
.....................................................
400
355
2.50%,
9/28/34
....................................................
500
427
4.50%,
10/8/34
....................................................
300
288
2.00%,
12/20/34
....................................................
500
409
3.50%,
7/1/35
.....................................................
200
180
3,575
Total
U.S.
Government
Agency
Mortgages
(Cost
$36,234)
a
a
a
35,815
U.S.
Treasury
Obligations
(11.8%)
U.S.
Treasury
Bonds
4.63%,
11/15/45
....................................................
1,103
1,059
2.25%,
2/15/52
....................................................
1,297
781
4.75%,
2/15/56
....................................................
2,200
2,137
U.S.
Treasury
Inflation
Indexed
Bonds,
1.88%,
7/15/35(k)
..........................
1,241
1,258
U.S.
Treasury
Notes
3.88%,
7/31/27
....................................................
2,000
1,994
3.50%,
1/31/28
....................................................
668
661
4.00%,
1/31/31
....................................................
4,795
4,753
3.88%,
12/31/32
....................................................
215
210
4.00%,
11/15/35
....................................................
163
157
4.13%,
2/15/36
....................................................
2,220
2,166
Total
U.S.
Treasury
Obligations
(Cost
$15,709)
a
a
a
15,176
Shares
Affiliated
Mutual
Funds
(4.4%)
Victory
Pioneer
CAT
Bond
Fund
............................................
57,939
658
Victory
Pioneer
ILS
Interval
Fund
...........................................
473,646
4,983
Total
Affiliated
Mutual
Funds
(Cost
$5,227)
a
a
a
5,641
Short-Term
Investments
(7.7%)
Principal
Amount
(000)
a
a
a
a
U.S.
Treasury
Obligations
(7.7%):
U.S.
Treasury
Bills
3.24%,
7/9/26(k)
...................................................
$
1,100
1,099
3.38%,
7/16/26(k)
..................................................
6,300
6,291
3.52%,
8/4/26(k)
...................................................
2,552
2,543
Total
U.S.
Treasury
Obligations
9,933
Total
Short-Term
Investments
(Cost
$9,933)
a
a
a
9,933
Total
Investments
(Cost
$144,765)
—
110.4%
141,879
Liabilities
in
excess
of
other
assets
—  (10.4)%
(13,307)
NET
ASSETS
-
100.00%
$
128,572
At
June
30,
2026,
the
Fund's
investments
in
foreign
securities
were
15.0%
of
net
assets.
(a)
Rule
144A
security
or
other
security
that
is
restricted
as
to
resale
to
institutional
investors.
As
of
June
30,
2026,
the
fair
value
of
these
securities
was
$40,304
(thousands)
and
amounted
to
31.3%
of
net
assets.
(b)
The
rate
for
certain
asset-backed
and
mortgage-backed
securities
may
vary
based
on
factors
relating
to
the
pool
of
assets
underlying
the
security.
The
rate
disclosed
is
the
rate
in
effect
at
June
30,
2026.
(c)
Security
is
interest
only.
(d)
Variable
or
Floating-Rate
Security.
Rate
disclosed
is
as
of
June
30,
2026.
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Bond
VCT
Portfolio
16
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
June
30,
2026
See
notes
to
financial
statements.
(e)
Zero-coupon
bond.
(f)
Amount
represents
less
than
0.05%
of
net
assets.
(g)
Security
was
fair
valued
based
upon
procedures
approved
by
the
Board
of
Trustees
and
represents
less
than
0.05%
of
net
assets
as
of
June
30,
2026.
This
security
is
classified
as
Level
3
within
the
fair
value
hierarchy
based
on
significant
unobservable
inputs.
(See
Note
2
in
the
Notes
to
Financial
Statements)
(h)
Rounds
to
less
than
$1
thousand.
(i)
Security
is
perpetual
and
has
no
final
maturity
date
but
may
be
subject
to
calls
at
various
dates
in
the
future.
(j)
Currently
the
issuer
is
in
default
with
respect
to
interest
and/or
principal
payments.
(k)
Rate
represents
the
effective
yield
at
June
30,
2026.
ABS
—
Asset-Backed
Securities
bps
—
Basis
points
CLO
—
Collateralized
Loan
Obligations
CMO
—
Collateralized
Mortgage
Obligations
FREMF
—
Freddie
Mac
Multifamily
Fixed-Rate
Mortgage
Loans
H15T1Y
—
1
Year
Treasury
Constant
Maturity
Rate,
rate
disclosed
as
of
June
30,
2026.
H15T5Y
—
5
Year
Treasury
Constant
Maturity
Rate,
rate
disclosed
as
of
June
30,
2026.
H15T10Y
—
10
Year
Treasury
Constant
Maturity
Rate,
rate
disclosed
as
of
June
30,
2026.
ICE
—
Intercontinental
Exchange,
Inc.
IBA
—
ICE
Benchmark
Administration
Limited
LLC
—
Limited
Liability
Company
LP
—
Limited
Partnership
MBS
—
Mortgage-Backed
Securities
PLC
—
Public
Limited
Company
PRIME
—
US
Prime
rate,
rate
disclosed
as
of
June
30,
2026.
REMIC
—
Real
Estate
Mortgage
Investment
Conduits
SOFR
—
Secured
Overnight
Financing
Rate
SOFRINDX
—
United
States
SOFR
Compounded
Index,
rate
disclosed
as
of
June
30,
2026.
SOFR01M
—
1
Month
SOFR,
rate
disclosed
as
of
June
30,
2026.
SOFR03M
—
3
Month
SOFR,
rate
disclosed
as
of
June
30,
2026.
SOFR30A
—
30
day
average
of
SOFR,
rate
disclosed
as
of
June
30,
2026.
STACR
—
Structured
Agency
Credit
Risk
TBA
—
To
Be
Announced
Securities
TSFR1M
—
1
Month
Term
SOFR,
rate
disclosed
as
of
June
30,
2026.
TSFR3M
—
3
Month
Term
SOFR,
rate
disclosed
as
of
June
30,
2026.
USISOA05
—
ICE
IBA
-
USD
SOFR
Spread-Adjusted
ICE
5
Year
Swap
Rate,
rate
disclosed
as
of
June
30,
2026.
TBA
Sales
Commitments
Security
Description
Principal
Amount
(000)
Value
(000)
TBA
Sales
Commitments
-
(4.40%)
Collateralized
Mortgage
Obligations
—  (4.40%)
Federal
National
Mortgage
Association,
TBA
2.50%
,
8/25/56
....................................................
$
(1,200)
$
(1,002)
6.00%
,
5/4/31
....................................................
(2,000)
(2,045)
6.50%
,
2/26/30
....................................................
(2,400)
(2,480)
Government
National
Mortgage
Association,
TBA
4.00%
,
12/21/34
...................................................
(100)
(93)
Total
TBA
Sales
Commitments
(Proceeds  $5,616)
$(5,620)
Futures
Contracts
Purchased
Number
of
Contracts
Expiration
Date
Notional
Amount
(000)
Value
(000)
Unrealized
Appreciation
(Depreciation)
(000)
10-Year
U.S.
Treasury
Note
Futures
......
12
9/21/26
$
1,312
$
1,319
$
7
2-Year
U.S.
Treasury
Note
Futures
.......
53
9/30/26
10,936
10,925
(11)
30-Year
U.S.
Treasury
Bond
Futures
.....
5
9/21/26
553
567
14
5-Year
U.S.
Treasury
Note
Futures
.......
60
9/30/26
6,413
6,423
10
Ultra
Long
Term
U.S.
Treasury
Bond
Futures
58
9/21/26
6,549
6,737
188
$
208
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Bond
VCT
Portfolio
17
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
June
30,
2026
See
notes
to
financial
statements.
Futures
Contracts
Sold
Number
of
Contracts
Expiration
Date
Notional
Amount
(000)
Value
(000)
Unrealized
Appreciation
(Depreciation)
(000)
U.S.
10-Year
Ultra
Futures
............
3
9/21/26
$
336
$
338
$
(2)
Total
unrealized
appreciation
$
219
Total
unrealized
depreciation
(13)
Total
net
unrealized
appreciation
(depreciation)
$
206
Centrally
Cleared
Credit
Default
Swap
Agreements
-
Buy
Protection(a)
Underlying
Instruments
Fixed
Deal
Pay
Rate
Maturity
Date
Payment
Frequency
Notional
Amount
(000)(b)
Value
(000)
Premiums
Paid
(Received)
(000)
Unrealized
Appreciation
(Depreciation)
(000)
Markit
CDX
North
America
High
Yield
Index
Series
45
...........................
5.00%
6/20/31
Quarterly
$
794
$
(482)
$
(412)
$
(70)
$
(482)
$
(412)
$
(70)
(a)
When
a
credit
event
occurs
as
defined
under
the
terms
of
the
swap
agreement,
the
Fund
as
a
buyer
of
credit
protection
will
either
(i)
receive
from
the
seller
of
protection
an
amount
equal
to
the
par
value
of
the
defaulted
reference
entity
and
deliver
the
reference
entity
or
(ii)
receive
a
net
amount
equal
to
the
par
value
of
the
defaulted
reference
entity
less
its
recovery
value.  
(b)
The
notional
amount
is
the
maximum
amount
that
a
seller
of
credit
protection
would
be
obligated
to
pay
upon
occurrence
of
a
credit
event.
Statement
of
Assets
and
Liabilities
June
30,
2026
18
See
notes
to
financial
statements.
Victory
Variable
Insurance
Funds
II
(Amounts
in
Thousands,
Except
Per
Share
Amounts)
(Unaudited)
Victory
Pioneer
Bond
VCT
Portfolio
Assets:
Affiliated
investments,
at
value
(Cost
$5,227)
$
5,641
Unaffiliated
investments,
at
value
(Cost
$139,538)
136,238
Cash
1,543
Futures
contracts
collateral
199
Swap
agreements
collateral
281
Due
from
broker
256
Receivables:
Dividends
and
interest
1,009
Capital
shares
issued
76
Investments
sold
29,006
From
Adviser
9
Variation
margin
on
open
swap
agreements
4
Prepaid
expenses
1
Total
Assets
174,263
Liabilities:
Payables:
Investments
purchased
39,848
Capital
shares
redeemed
75
Variation
margin
on
open
futures
contracts
67
TBA
sales
commitments,
at
value
(Proceeds
$5,616)
5,620
Accrued
expenses
and
other
payables:
Investment
advisory
fees
42
12b-1
fees
11
Other
accrued
expenses
28
Total
Liabilities
45,691
Commitments
and
contingencies
(Note
4
)
Net
Assets:
Capital
148,731
Total
accumulated
earnings
(loss)
(
20,159
)
Net
Assets
$
128,572
Net
Assets:
Class
I
$
24,209
Class
II
104,363
Total
$
128,572
Shares
(unlimited
number
of
shares
authorized
with
a
par
value
of
$0.001
per
share):
Class
I
2,499
Class
II
10,746
Total
13,245
Net
asset
value,
offering
and
redemption
price
per
share:(a)
Class
I
$
9.69
Class
II
9.71
(a)
Per
share
amount
may
not
recalculate
due
to
rounding
of
net
assets
and/or
shares
outstanding.
Statement
of
Operations
For
the
Six
Months
Ended
June
30,
2026
19
See
notes
to
financial
statements.
Victory
Variable
Insurance
Funds
II
(Amounts
in
Thousands)
(Unaudited)
Victory
Pioneer
Bond
VCT
Portfolio
Investment
Income:
Dividends
$
23‌
Interest
2,880‌
Foreign
tax
withholding
(
55‌
)
Total
Income
2,848‌
Expenses:
Investment
advisory
fees
253‌
Administration
fees
28‌
Sub-Administration
fees
8‌
12b-1
fees
—
Class
II
128‌
Custodian
fees
2‌
Trustees'
fees
3‌
Legal
and
audit
fees
23‌
Other
expenses
6‌
Recoupment
of
prior
expenses
waived/reimbursed
by
Adviser
—‌
(a)
Total
Expenses
451‌
Less
fees
paid
indirectly
—‌
(a)
Expenses
waived/reimbursed
by
Adviser
(
44‌
)
Net
Expenses
407‌
Net
Investment
Income
(Loss)
2,441‌
Realized/Unrealized
Gains
(Losses)
from
Investments:
Net
realized
gains
(losses)
from
unaffiliated
investment
securities
(
231‌
)
Net
realized
gains
(losses)
from
TBA
sales
commitments
57‌
Net
realized
gains
(losses)
from
futures
contracts
(
645‌
)
Net
realized
gains
(losses)
from
swap
agreements
38‌
Net
change
in
unrealized
appreciation/depreciation
on
affiliated
investment
securities
428‌
Net
change
in
unrealized
appreciation/depreciation
on
unaffiliated
investment
securities
(
1,162‌
)
Net
change
in
unrealized
appreciation/depreciation
on
TBA
sales
commitments
(
19‌
)
Net
change
in
unrealized
appreciation/depreciation
on
futures
contracts
455‌
Net
change
in
unrealized
appreciation/depreciation
on
swap
agreements
(
53‌
)
Net
realized/unrealized
gains
(losses)
on
investments
(
1,132‌
)
Change
in
net
assets
resulting
from
operations
$
1,309‌
(a)
Rounds
to
less
than
$1
thousand.
20
(Amounts
in
Thousands)
Victory
Variable
Insurance
Funds
II
Statements
of
Changes
in
Net
Assets
See
notes
to
financial
statements.
Victory
Pioneer
Bond
VCT
Portfolio
Six
Months
Ended
June
30,
2026
(Unaudited)
Year
Ended
December
31,
2025*
From
Investment
Activities:
Operations:
Net
Investment
Income
(Loss)
$
2,441‌
$
5,612‌
Net
realized
gains
(losses)
(
781‌
)
510‌
Net
change
in
unrealized
appreciation/depreciation
(
351‌
)
4,638‌
Change
in
net
assets
resulting
from
operations
1,309‌
10,760‌
Distributions
to
Shareholders:
Class
I
(
486‌
)
(
1,046‌
)
Class
II
(
1,928‌
)
(
4,350‌
)
Change
in
net
assets
resulting
from
distributions
to
shareholders
(
2,414‌
)
(
5,396‌
)
Change
in
net
assets
resulting
from
capital
transactions
1,910‌
(
6,969‌
)
Change
in
net
assets
805‌
(
1,605‌
)
Net
Assets:
Beginning
of
period
127,767‌
129,372‌
End
of
period
$
128,572‌
$
127,767‌
*
Pioneer
Bond
VCT
Portfolio
(the
“Predecessor
Fund”)
reorganized
with
the
Fund
effective
April
1,
2025
(the
“Reorganization”).
The
Predecessor
Fund
is
the
accounting
survivor
of
the
Reorganization
and
shareholders
holding
Class
I
and
Class
II
shares
of
the
Predecessor
Fund
received
Class
I
and
Class
II
shares
of
the
Fund,
respectively.
21
(Amounts
in
Thousands)
Victory
Variable
Insurance
Funds
II
Statements
of
Changes
in
Net
Assets
(continued)
See
notes
to
financial
statements.
Victory
Pioneer
Bond
VCT
Portfolio
Six
Months
Ended
June
30,
2026
(Unaudited)
Year
Ended
December
31,
2025*
Capital
Transactions:
Class
I
Proceeds
from
shares
issued
$
6,000‌
$
8,839‌
Distributions
reinvested
486‌
1,047‌
Cost
of
shares
redeemed
(
5,783‌
)
(
9,665‌
)
Total
Class
I
$
703‌
$
221‌
Class
II
Proceeds
from
shares
issued
$
6,925‌
$
16,206‌
Distributions
reinvested
1,928‌
4,350‌
Cost
of
shares
redeemed
(
7,646‌
)
(
27,746‌
)
Total
Class
II
$
1,207‌
$
(
7,190‌
)
Change
in
net
assets
resulting
from
capital
transactions
$
1,910‌
$
(
6,969‌
)
Share
Transactions:
Class
I
Issued
615‌
925‌
Reinvested
50‌
108‌
Redeemed
(
593‌
)
(
1,009‌
)
Total
Class
I
72‌
24‌
Class
II
Issued
711‌
1,682‌
Reinvested
197‌
450‌
Redeemed
(
782‌
)
(
2,900‌
)
Total
Class
II
126‌
(
768‌
)
Change
in
Shares
198‌
(
742‌
)
*
Pioneer
Bond
VCT
Portfolio
(the
“Predecessor
Fund”)
reorganized
with
the
Fund
effective
April
1,
2025
(the
“Reorganization”).
The
Predecessor
Fund
is
the
accounting
survivor
of
the
Reorganization
and
shareholders
holding
Class
I
and
Class
II
shares
of
the
Predecessor
Fund
received
Class
I
and
Class
II
shares
of
the
Fund,
respectively.
Victory
Variable
Insurance
Funds
II
Financial
Highlights
For
a
Share
Outstanding
Throughout
Each
Period
22
See
notes
to
financial
statements.
NOTE:
The
above
financial
highlights
do
not
reflect
the
deduction
of
non-fund
expenses
associated
with
variable
insurance
products,
such
as
mortality
and
expense
risk
charges,
separate
account
charges,
and
sales
charges.
Victory
Pioneer
Bond
VCT
Portfolio
Class
I*
Six
Months
Ended
June
30,
2026
(Unaudited)
Year
Ended
December
31,
2025
Year
Ended
December
31,
2024
Year
Ended
December
31,
2023
Year
Ended
December
31,
2022
Year
Ended
December
31,
2021
Net
Asset
Value,
Beginning
of
Period
$9.77
$9.36
$9.49
$9.23
$11.27
$11.78
Investment
Activities:
Net
investment
income
(loss)(a)
0.20
0.45
0.45
0.41
0.28
0.24
Net
realized
and
unrealized
gains
(losses)
(0.09)
0.39
(0.16)
0.22
(1.87)
(0.20)
Total
from
Investment
Activities
0.11
0.84
0.29
0.63
(1.59)
0.04
Distributions
to
Shareholders
from:
Net
investment
income
(0.19)
(0.43)
(0.39)
(0.37)
(0.22)
(0.25)
Net
realized
gains
—
—
—
—
(0.21)
(0.30)
Return
of
capital
—
—
(0.03)
—
(0.02)
—
Total
Distributions
(0.19)
(0.43)
(0.42)
(0.37)
(0.45)
(0.55)
Net
Asset
Value,
End
of
Period
$9.69
$9.77
$9.36
$9.49
$9.23
$11.27
Total
Return(b)(c)
1.17%
9.17%
3.15%
6.96%(d)
(14.19)%
0.38%
Ratios
to
Average
Net
Assets:
Net
Expenses(e)(f)
0.44%(g)
0.45%
0.48%
0.55%
0.49%
0.57%
Net
Investment
Income
(Loss)(e)
4.06%
4.71%
4.80%
4.38%
2.85%
2.12%
Gross
Expenses(e)(f)
0.51%(g)
0.51%
0.53%
0.59%
0.52%
0.60%
Supplemental
Data:
Net
Assets
at
end
of
period
(000's)
$24,209
$23,717
$22,488
$22,519
$24,063
$33,091
Portfolio
Turnover(b)(h)
113%
35%
53%
56%
65%
61%
*
Pioneer
Bond
VCT
Portfolio
(the
“Predecessor
Fund”)
reorganized
with
the
Fund
effective
April
1,
2025
(the
“Reorganization”).
The
Predecessor
Fund
is
the
accounting
survivor
of
the
Reorganization
and
shareholders
holding
Class
I
and
Class
II
shares
of
the
Predecessor
Fund
received
Class
I
and
Class
II
shares
of
the
Fund,
respectively.
(a)
Per
share
net
investment
income
(loss)
has
been
calculated
using
the
average
daily
shares
method.
(b)
Not
annualized
for
periods
less
than
one
year.
(c)
Assumes
reinvestment
of
all
net
investment
income
and
realized
capital
gain
distributions,
if
any,
during
the
period.
Includes
adjustments
in
accordance
with
U.S.
Generally
Accepted
Accounting
Principles
and
could
differ
from
the
reported
return.
(d)
For
the
year
ended
December
31,
2023,
the
Fund’s
total
return
includes
a
reimbursement
by
the
Adviser.
The
impact
on
Class
I’s
total
return
was
less
than
0.005%.
(e)
Annualized
for
periods
less
than
one
year.
(f)
Does
not
include
acquired
fund
fees
and
expenses,
if
any.
(g)
Reflects
total
annual
operating
expenses
before
reductions
of
any
expenses
paid
indirectly.
The
Fund's
expenses
paid
indirectly
decreased
the
expense
ratios
by
less
than
0.01%.
(h)
Portfolio
turnover
is
calculated
on
the
basis
of
the
Fund
as
a
whole
without
distinguishing
between
the
classes
of
shares.
23
Victory
Variable
Insurance
Funds
II
For
a
Share
Outstanding
Throughout
Each
Period
Financial
Highlights
—
continued
See
notes
to
financial
statements.
NOTE:
The
above
financial
highlights
do
not
reflect
the
deduction
of
non-fund
expenses
associated
with
variable
insurance
products,
such
as
mortality
and
expense
risk
charges,
separate
account
charges,
and
sales
charges.
Victory
Pioneer
Bond
VCT
Portfolio
Class
II*
Six
Months
Ended
June
30,
2026
(Unaudited)
Year
Ended
December
31,
2025
Year
Ended
December
31,
2024
Year
Ended
December
31,
2023
Year
Ended
December
31,
2022
Year
Ended
December
31,
2021
Net
Asset
Value,
Beginning
of
Period
$9.80
$9.39
$9.51
$9.25
$11.30
$11.80
Investment
Activities:
Net
investment
income
(loss)(a)
0.18
0.43
0.43
0.39
0.26
0.21
Net
realized
and
unrealized
gains
(losses)
(0.09)
0.39
(0.15)
0.21
(1.88)
(0.19)
Total
from
Investment
Activities
0.09
0.82
0.28
0.60
(1.62)
0.02
Distributions
to
Shareholders
from:
Net
investment
income
(0.18)
(0.41)
(0.37)
(0.34)
(0.20)
(0.22)
Net
realized
gains
—
—
—
—
(0.21)
(0.30)
Return
of
capital
—
—
(0.03)
—
(0.02)
—
Total
Distributions
(0.18)
(0.41)
(0.40)
(0.34)
(0.43)
(0.52)
Net
Asset
Value,
End
of
Period
$9.71
$9.80
$9.39
$9.51
$9.25
$11.30
Total
Return(b)(c)
0.94%
8.88%
3.01%
6.68%(d)
(14.45)%
0.22%
Ratios
to
Average
Net
Assets:
Net
Expenses(e)(f)
0.69%(g)
0.70%
0.73%
0.80%
0.74%
0.82%
Net
Investment
Income
(Loss)(e)
3.81%
4.44%
4.54%
4.14%
2.61%
1.86%
Gross
Expenses(e)(f)
0.76%(g)
0.76%
0.78%
0.84%
0.77%
0.85%
Supplemental
Data:
Net
Assets
at
end
of
period
(000's)
$104,363
$104,050
$106,883
$110,998
$118,138
$150,361
Portfolio
Turnover(b)(h)
113%
35%
53%
56%
65%
61%
*
Pioneer
Bond
VCT
Portfolio
(the
“Predecessor
Fund”)
reorganized
with
the
Fund
effective
April
1,
2025
(the
“Reorganization”).
The
Predecessor
Fund
is
the
accounting
survivor
of
the
Reorganization
and
shareholders
holding
Class
I
and
Class
II
shares
of
the
Predecessor
Fund
received
Class
I
and
Class
II
shares
of
the
Fund,
respectively.
(a)
Per
share
net
investment
income
(loss)
has
been
calculated
using
the
average
daily
shares
method.
(b)
Not
annualized
for
periods
less
than
one
year.
(c)
Assumes
reinvestment
of
all
net
investment
income
and
realized
capital
gain
distributions,
if
any,
during
the
period.
Includes
adjustments
in
accordance
with
U.S.
Generally
Accepted
Accounting
Principles
and
could
differ
from
the
reported
return.
(d)
For
the
year
ended
December
31,
2023,
the
Fund’s
total
return
includes
a
reimbursement
by
the
Adviser.
The
impact
on
Class
II’s
total
return
was
less
than
0.005%.
(e)
Annualized
for
periods
less
than
one
year.
(f)
Does
not
include
acquired
fund
fees
and
expenses,
if
any.
(g)
Reflects
total
annual
operating
expenses
before
reductions
of
any
expenses
paid
indirectly.
The
Fund's
expenses
paid
indirectly
decreased
the
expense
ratios
by
less
than
0.01%.
(h)
Portfolio
turnover
is
calculated
on
the
basis
of
the
Fund
as
a
whole
without
distinguishing
between
the
classes
of
shares.
Notes
to
Financial
Statements
June
30,
2026
Victory
Variable
Insurance
Funds
II
24
(Unaudited)
1.
Organization:
Victory
Variable
Insurance Funds
II
(the
“Trust”)
is
organized
as
a
Delaware
statutory
trust
and
is
registered
under
the Investment
Company
Act
of
1940,
as
amended
(the
“1940
Act”),
as
an
open-end
investment
company.
The
Trust
is
comprised
of seven funds
and
is
authorized
to
issue
an
unlimited
number
of
shares,
which
are
units
of
beneficial
interest
with a
par
value
of
$0.001
per
share.
The
Fund's
shares
are
only
available
for
purchase
by
insurance
companies
for
funding
variable
annuity
and
variable
life
insurance
contracts
or
by
qualified
pension
and
retirement
plans.
The
accompanying
financial
statements
are
those
of
the
following
fund
(the
"Fund").
The
fund
is
classified
as
diversified
under
the
1940
Act.
Each
class
of
shares
of the
Fund
has
substantially
identical
rights
and
privileges
except
with
respect
to
fees
paid
under
distribution
plans,
expenses
allocable
exclusively
to
each
class
of
shares,
voting
rights
on
matters
solely
affecting
a
single
class
of
shares,
and
the
exchange
privilege
of
each
class
of
shares.
 Victory
Capital
Management
Inc.
(“VCM”
or
the
“Adviser”)
is
an
indirect
wholly
owned
subsidiary
of
Victory
Capital
Holdings,
Inc.,
a
publicly
traded
Delaware
corporation,
and
a
wholly
owned
direct
subsidiary
of
Victory
Capital
Operating,
LLC.
Under
the
Trust’s
organizational
documents,
its
officers
and
trustees
are
indemnified
against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Fund.
In
addition,
in
the
normal
course
of
business,
the
Fund
enters
into
contracts
with
its
vendors
and
others
that
provide
for
general
indemnifications.
The
Fund’s
maximum
exposure
under
these
arrangements
is
unknown,
as
this
would
involve
future
claims
that
may
be
made
against
the
Fund.
However,
based
on
experience,
the
Fund
expects
that
risk
of
loss
to
be
remote.
The Fund,
which
commenced
operations
on
April
1,
2025,
is
the
successor
to
the
Pioneer
Bond
VCT
Portfolio
(the
“Predecessor
Fund”).
The
Predecessor Fund
transferred
all
of
the
net
assets
of
Class
I
and Class
II
shares
in
exchange
for
the
Fund’s
Class
I  and
Class II
shares,
respectively,
on
April
1,
2025
pursuant
to
an
agreement
and
plan
of
reorganization
(the
“Reorganization”)
which
was
approved
by
the
shareholders
of
the
Predecessor Fund
on
March
27,
2025.
The
Reorganization
was
structured
so
that
the
transfer
of
assets
and
liabilities
did
not
result
in
federal
tax
liability
to
the
Predecessor
Fund or
its
shareholders.
Shareholders
holding
Class
I
and
Class
II shares
of
the
Predecessor Fund
received
Class
I
and
Class II
shares
of
the
Fund,
respectively,
in
the
Reorganization.
The
Predecessor Fund
was
the
accounting
survivor
of
the
Reorganization.
Accordingly,
the
Predecessor
Fund’s
performance
and
financial
history
have
become
the
performance
and
financial
history
of
the
Fund.
The
Fund’s
investment
objective
is
to
seek
current
income
and
total
return.
Effective
April
1,
2025, VCM
serves
as
the
Fund’s
investment
adviser,
succeeding
Amundi
Asset
Management
US,
Inc.
(“Amundi
US”).
On
the
same
date,
Victory
Capital
Services,
Inc.
(the
“Distributor”),
an
affiliate
of
the
Adviser,
became
the
Distributor
for
the
Fund's
shares,
succeeding
Amundi
Distributor
US,
Inc.
The
Distributor
receives
no
fee
or
other
compensation
for
these
services
(See
Note
4).
On
September
30,
2025,
the
Trust’s
Board
of
Trustees
(the
“Board”),
upon
the
recommendation
of
the
Adviser,
approved
a
change
in
the
Fund's
custodian,
sub-administrator,
sub-fund
accountant,
and
transfer
agent.
Effective
as
of
February
9,
2026, Citibank,
N.A.
serves
as
the
custodian
of
the
Fund,
Citi
Fund
Services
Ohio,
Inc.
serves
as
sub-administrator
and
sub-fund
accountant
of
the
Fund
and
FIS
Investor
Services
LLC
serves
as
transfer
agent
of
the
Fund.
2.
Significant
Accounting
Policies:
The
following
is
a
summary
of
significant
accounting
policies
followed
by
the Fund
in
the
preparation
of
its
financial
statements.
The
policies
are
in
conformity
with
U.S.
Generally
Accepted
Accounting
Principles
(“GAAP”).
The
preparation
of
financial
statements
in
accordance
with
GAAP
requires
the
Adviser
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
and
disclosure
of
contingent
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
reported
amounts
of
income
and
expenses
for
the
period.
Actual
results
could
differ
from
those
estimates.
The
Fund
follows
the
specialized
accounting
and
reporting
requirements
under
GAAP
that
are
applicable
to
investment
companies
under
Accounting
Standards
Codification
Topic 946.
Investment
Valuation: 
The
Fund
records
investments
at
fair
value.
Fair
value
is
defined
as
the
price
that
would
be
received
to sell
an asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
at
the
measurement
date.
The
valuation
techniques
described
below
maximize
the
use
of
observable
inputs
and
minimize
the
use
of
unobservable
inputs
in
determining
fair
value.
The
inputs
used
for
valuing
the
Fund’s
investments
are
summarized
in
the
three
broad
levels
listed
below:
Level
1
—
quoted
prices
(unadjusted)
in
active
markets
for
identical
securities
Level
2
—
other
significant
observable
inputs
(including
quoted
prices
for
similar
securities,
interest
rates,
or
credit
spreads,
applicable
to
those
securities,
etc.)
Level
3
—
significant
unobservable
inputs
(including
the
Adviser’s
assumptions
in
determining
the
fair
value
of
investments)
Changes
in
valuation
techniques
may
result
in
transfers
in
or
out
of
an
assigned
level
within
the
disclosure
hierarchy.
The
inputs
or
methodologies
used
for
valuation
techniques
are
not
necessarily
an
indication
of
the
risks
associated
with
entering
into
those
investments.
The Adviser,
appointed
as
the
valuation
designee
by the
Trust's
Board
of
Trustees
(the
“Board”), has
established
the
Pricing
Committee
(the
“Committee”),
and
subject
to
Board
oversight,
the
Committee
administers
and
oversees
the
Fund’s
valuation
policies
and
procedures,
which
are
approved
by
the
Board.
Fund
(Legal
Name)
Fund
(Short
Name)
Investment
Share
Classes
Offered
Victory
Pioneer
Bond
VCT
Portfolio
Bond
VCT
Portfolio
Class
I
and
Class
II
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
25
(Unaudited)
Portfolio
securities
listed
or
traded
on
securities
exchanges,
are
valued
at
the
last
sale
price
on
the
exchange
or
system
where
the
security
is
principally
traded,
if
available,
or
at
the
Nasdaq
Official
Closing
Price.
If
there
have
been
no
sales
for
that
day
on
the
exchange
or
system,
then
a
security
is
valued
at
the
closing mean
if
available,
otherwise
the
bid
quotation
on
the
exchange
or
system
where
the
security
is
principally
traded.
In
each
of
these
situations,
valuations
are
typically
categorized
as
Level
1
in
the
fair
value
hierarchy.
Debt
securities
are
valued
each
business
day
by
a
pricing
service
approved
by
the
valuation
designee
and
subject
to
the
oversight
of
the
Board.
The
pricing
service
uses
the
evaluated
bid
or market
quotes to
value
securities.
Debt
obligations
maturing
within
60
days
may
be
valued
at
amortized
cost,
provided
that
the
amortized
cost
represents
the
fair
value
of
such
securities.
These
valuations
are
typically
categorized
as
Level
2
in
the
fair
value
hierarchy.
Investments
in
open-end
investment
companies,
other
than
ETFs, are
valued
at their
net
asset
value
(“NAV”).
These
valuations
are
typically
categorized
as
Level
1 in
the
fair
value
hierarchy.
Loan
interests
are
valued
at
the
mean
between
the
last
available
bid
and
asked
prices
from
one
or
more
brokers
or
dealers
as
obtained
from
an
independent
third
party
pricing
service.
If
price
information
is
not
available,
or
if
the
price
information
is
deemed
to
be
unreliable,
price
information
will
be
obtained
from
an
alternative
loan
interest
pricing
service.
If
no
reliable
price
quotes
are
available
from
either
the
primary
or
alternative
pricing
service,
broker
quotes
will
be
solicited.
These
valuations
are
typically
categorized
as
Level
2
in
the
fair
value
hierarchy.
Futures
contracts
are
valued
at
the
settlement
price
established
each
day
by
the
board
of
trade
or
an
exchange
on
which
they
are
traded.
These
valuations
are
typically
categorized
as
Level
1
in
the
fair
value
hierarchy.
Swap
agreements,
including
interest
rate
swaps,
caps
and
floors
(other
than
centrally
cleared
swap
contracts)
are
valued
at
the
mean
between
the
current
bid
and
ask
prices.
Centrally
cleared
swaps
are
valued
at
the
daily
settlement
price
provided
by
the
central
clearing
counterparty.  To
the
extent
this
model
is
utilized,
these
valuations
are
considered
as
Level
2
in
the
fair
value
hierarchy.
In
the
event
that
price
quotations
or
valuations
are
not
readily
available,
investments
are
valued
at
fair
value
in
accordance
with
procedures
established
by
and
under
the
general
supervision
and
responsibility
of
the
Board.
These
valuations
are
typically
categorized
as
Level
2
or
Level
3
in
the
fair
value
hierarchy,
based
on
the
observability
of
inputs
used
to
determine
the
fair
value.
The
effect
of
fair
value
pricing
is
that
securities
may
not
be
priced
on
the
basis
of
quotations
from
the
primary
market
in
which
they
are
traded
and
the
actual
price
realized
from
the
sale
of
a
security
may
differ
materially
from
the
fair
value
price.
Valuing
these
securities
at
fair
value
is
intended
to
cause
the
Fund’s
NAV to
be
more
reliable
than
it
otherwise
would
be.
The
principal
exchanges
and
markets
for
non-U.S.
equity
securities
have
closing
times
prior
to
the
close
of
the
New
York
Stock
Exchange.
However,
the
value
of
these
securities
may
be
influenced
by
changes
in
global
markets
occurring
after
the
closing
times
of
the
local
exchanges
and
markets
up
to
the
time
the
Fund
determines
its
net
asset
value.
Consequently,
the
Fund
uses
a
fair
value
model
developed
by
an
independent
pricing
service
to
value
non-U.S.
equity
securities.
On
a
daily
basis,
the
pricing
service
recommends
changes,
based
on
a
proprietary
model,
to
the
closing
market
prices
of
each
non-U.S.
security
held
by
the
Fund
to
reflect
the
security’s
fair
value
at
the
time
the
Fund
determines
its
net
asset
value.
These
recommendations
are
applied
in
accordance
with
the
Adviser’s
(the
valuation
designee’s)
valuation
procedures.
These
valuations
are
typically
categorized
as
Level
2
in
the
fair
value
hierarchy.
A
summary
of
the
valuations
as
of
June
30,
2026, based
upon
the
three
levels
defined
above,
is
included
in
the
table
below
while
the
breakdown,
by
category,
of
investments
is
disclosed
on
the
Schedule
of
Portfolio
Investments
(amounts
in
thousands):
Level
1
Level
2
Level
3
Total
Bond
VCT
Portfolio
Asset-Backed
Securities
.........................................
$
—
$
9,753
$
—
$
9,753
Collateralized
Loan
Obligations
...................................
—
1,984
—
1,984
Collateralized
Mortgage
Obligations
................................
—
11,654
—(a)
11,654
Preferred
Stocks
...............................................
575
—
—
575
Senior
Secured
Loans
...........................................
—
75
—
75
Corporate
Bonds
..............................................
—
33,356
41
33,397
Yankee
Dollars
...............................................
—
17,876
—
17,876
U.S.
Government
Agency
Mortgages
................................
—
35,815
—
35,815
U.S.
Treasury
Obligations
........................................
—
15,176
—
15,176
Affiliated
Mutual
Funds
.........................................
5,641
—
—
5,641
Short-Term
Investments
.........................................
—
9,933
—
9,933
Total
.......................................................
$
6,216
$
135,622
$
41
$
141,879
Liabilities:
TBA
Sales
Commitments
........................................
$
—
$
(5,620)
$
—
$
(5,620)
Total
.......................................................
$
—
$
(5,620)
$
—
$
(5,620)
Other
Financial
Investments:*
Assets:
Futures
Contracts
..............................................
219
—
—
219
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
26
(Unaudited)
 (a)
Rounds to
less
than
$1 thousands.
*    Swap
Agreements
and
Futures
contracts
are
presented
at
the
unrealized
appreciation
(depreciation)
on
the
investment.
As
of June
30,
2026,
there
were
no
significant transfers
into/out
of
Level
3.
Investment
Companies:
Open-End
Funds:
The
Fund
may
invest
in
portfolios
of
open-end
investment
companies.
These
investment
companies
value
securities
in
their
portfolios
for
which
market
quotations
are
readily
available
at
their
market
values
(generally
the
last
reported
sale
price)
and
all
other
securities
and
assets
at
their
fair
value
by
the
methods
established
by
the
board
of
directors
of
the
underlying
funds.
Municipal
Obligations:
The
values
of
municipal
obligations
can
fluctuate
and
may
be
affected
by
adverse
tax,
legislative,
or
political
changes,
and
by
financial
developments
affecting
municipal
issuers.
Payments
of
municipal
obligations
may
depend
on
a
relatively
limited
source
of
revenue,
resulting
in
greater
credit
risk.
Future
changes
in
federal
tax
laws
or
the
activity
of
an
issuer
may
adversely
affect
the
tax-exempt
status
of
municipal
obligations.
Mortgage-
and
Asset-Backed
Securities:
The
values
of
some
mortgage-related
or
asset-backed
securities
may
be
particularly
sensitive
to
changes
in
prevailing
interest
rates.
Early
repayment
of
principal
on
some
mortgage-related
securities
may
expose
the
Fund
to
a
lower
rate
of
return
upon
reinvestment
of
principal.
The
values
of
mortgage-
and
asset-backed
securities
depend
in
part
on
the
credit
quality
and
adequacy
of
the
underlying
assets
or
collateral
and
may
fluctuate
in
response
to
the
market’s
perception
of
these
factors
as
well
as
current
and
future
repayment
rates.
Some
mortgage-backed
securities
are
backed
by
the
full
faith
and
credit
of
the
U.S.
government
(e.g.,
mortgage-backed
securities
issued
by
the
Government
National
Mortgage
Association,
commonly
known
as
“Ginnie
Mae”),
while
other
mortgage-backed
securities
(e.g.,
mortgage-backed
securities
issued
by
the
Federal
National
Mortgage
Association
and
the
Federal
Home
Loan
Mortgage
Corporation,
commonly
known
as
“Fannie
Mae”
and
“Freddie
Mac,”
respectively),
are
backed
only
by
the
credit
of
the
government
entity
issuing
them.
In
addition,
some
mortgage-backed
securities
are
issued
by
private
entities
and,
as
such,
are
not
guaranteed
by
the
U.S.
government
or
any
agency
or
instrumentality
of
the
U.S.
government.
TBAs
:
The
Fund
may
enter
into
to-be-announced
(TBA)
purchases
or
sales
commitments
(collectively,
TBA
transactions),
pursuant
to
which
it
agrees
to
purchase
or
sell,
respectively,
mortgage-backed
securities
for
a
fixed
unit
price,
with
payment
and
delivery
at
a
scheduled
future
date
beyond
the
customary
settlement
period
for
such
securities.
With
TBA
transactions,
the
particular
securities
to
be
received
or
delivered
by
the
Fund
are
not
identified
at
the
trade
date;
however,
the
securities
must
meet
specified
terms,
including
issuer,
rate,
and
mortgage
term,
and
be
within
industry-accepted
“good
delivery”
standards.
The
Fund
may
enter
into
TBA
transactions
with
the
intention
of
taking
possession
of
or
relinquishing
the
underlying
securities,
may
elect
to
extend
the
settlement
by
“rolling”
the
transaction,
and/or
may
use
TBA
transactions
to
gain
or
reduce
interim
exposure
to
underlying
securities.
Until
settlement,
the
Fund
maintains
liquid
assets
sufficient
to
settle
its
commitment
to
purchase
a
TBA
or,
in
the
case
of
a
sale
commitment,
the
Fund
maintains
an
entitlement
to
the
security
to
be
sold.
To
mitigate
counterparty
risk,
the
Fund
has
entered
into
agreements
with
TBA
counterparties
that
provide
for
collateral
and
the
right
to
offset
amounts
due
to
or
from
those
counterparties
under
specified
conditions.
Subject
to
minimum
transfer
amounts,
collateral
requirements
are
determined
and
transfers
made
based
on
the
net
aggregate
unrealized
gain
or
loss
on
all
TBA
commitments
with
a
particular
counterparty.
At
any
time,
the
Fund’s
risk
of
loss
from
a
particular
counterparty
related
to
its
TBA
commitments
is
the
aggregate
unrealized
gain
on
appreciated
TBAs
in
excess
of
unrealized
loss
on
depreciated
TBAs
and
collateral
received,
if
any,
from
such
counterparty.
As
of
June
30,
2026,
no
collateral
was
pledged
or
paid
by
the
Fund.
Loans:
Floating
rate
loans
in
which
the
Fund
invests
are
primarily
“senior”
loans.
Senior
floating
rate
loans
typically
hold
a
senior
position
in
the
capital
structure
of
the
borrower,
are
typically
secured
by
specific
collateral,
and
have
a
claim
on
the
assets
and/or
stock
of
the
borrower
that
is
senior
to
that
held
by
subordinated
debtholders
and
stockholders
of
the
borrower.
While
these
protections
may
reduce
risk,
these
investments
still
present
significant
credit
risk.
A
significant
portion
of
the
Fund’s
floating
rate
investments
may
be
issued
in
connection
with
highly
leveraged
transactions
such
as
leveraged
buyouts,
leveraged
recapitalization
loans,
and
other
types
of
acquisition
financing.
Obligations
in
these
types
of
transactions
are
subject
to
greater
credit
risk
(including
default
and
bankruptcy)
than
many
other
investments
and
may
be,
or
become,
illiquid.
Level
1
Level
2
Level
3
Total
Bond
VCT
Portfolio
Liabilities:
Credit
Default
Swap
Agreement
...................................
—
(70)
—
(70)
Futures
Contracts
..............................................
(13)
—
—
(13)
Total
.......................................................
$
206
$
(70)
$
—
$
136
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
27
(Unaudited)
See
note
regarding
below-investment-grade
securities.
The
Fund
may
purchase
second
lien
loans
(secured
loans
with
a
claim
on
collateral
subordinate
to
a
senior
lender’s
claim
on
such
collateral),
fixed
rate
loans,
unsecured
loans,
and
other
debt
obligations.
Transactions
in
loans
often
settle
on
a
delayed
basis,
and
the
Fund
may
not
receive
the
proceeds
from
the
sale
of
a
loan
or
pay
for
a
loan
purchase
for
a
substantial
period
of
time
after
entering
into
the
transactions.
Securities
Purchased
on
a
Delayed-Delivery
or
When-Issued
Basis:
The
Fund
may
purchase
securities
on
a
delayed-delivery
or
when-issued
basis.
Delivery
and
payment
for
securities
that
have
been
purchased
by
the
Fund
on
a
delayed-delivery
or
when-issued
basis,
or
for
delayed
draws
on
loans
can
generally
take
place
within
35
days after
the
trade
date.
Securities
that
require
more
than
35
days
to
settle
are
considered
a
senior
security
and
subject
to
Rule
18f-4.
At
the
time
the
Fund
makes
the
commitment
to
purchase
a
security
on
a
delayed-delivery
or
when-issued
basis,
the
Fund
records
the
transaction
and
reflects
the
value
of
the
security
in
determining
NAV.
No
interest
accrues
to
the
Fund
until
the
transaction
settles
and
payment
takes
place. 
If
the
Fund
owns
delayed-
delivery
or
when-issued
securities,
these
values
are
included
in
Payables
for
Investments
purchased
on
the
accompanying
Statement
of
Assets
and
Liabilities.
Securities
Lending:
Effective
May
8,
2026,
the
Fund,
through
a
Securities
Lending
Agreement
with
Citibank,
N.A.
(“Citibank”),
may
lend
its
securities
to
qualified
financial
institutions,
such
as
certain
broker-dealers
and
banks,
to
earn
additional
income,
net
of
income
retained
by
Citibank.
Borrowers
are
required
to
initially
secure
their
loans
for
collateral
in
the
amount
of
at
least
102%
of
the
value
of
U.S.
securities
loaned
or
at
least
105%
of
the
value
of
non-U.S.
securities
loaned,
marked-to-market
daily.
Any
collateral
shortfalls
associated
with
increases
in
the
valuation
of
the
securities
loaned
are
generally
cured
the
next
business
day.
The
collateral
can
be
received
in
the
form
of
cash
collateral
and/or
non-cash
collateral.
Non-
cash
collateral
can
include
U.S.
Government
Securities
and
other
securities
as
permitted
by Securities
and
Exchange
Commission
(“SEC”)
guidelines.
The
cash
collateral
is
invested
in
short-term
instruments
or
cash
equivalents,
primarily
open-end
investment
companies,
as
noted
on
the
Fund’s
Schedule
of
Portfolio
Investments.
The
Fund
effectively
does
not
have
control
of
the
non-cash
collateral
and
therefore
it
is
not
disclosed
on
the
Fund’s
Schedule
of
Portfolio
Investments.
Collateral
requirements
are
determined
daily
based
on
the
value
of
the
Fund’s
securities
on
loan
as
of
the
end
of
the
prior
business
day.
During
the
time
portfolio
securities
are
on
loan,
the
borrower
will
pay
the
Fund
any
dividends
or
interest
paid
on
such
securities
plus
any
fee
negotiated
between
the
parties
to
the
lending
agreement.
The
Fund
also
earns
a
return
from
the
collateral.
The
Fund
pays
Citibank
various
fees
in
connection
with
the
investment
of
cash
collateral
and
fees
based
on
the
investment
income
received
from
securities
lending
activities.
Securities
lending
income
(net
of
these
fees)
is
disclosed
on
the
Statement
of
Operations.
Loans
are
terminable
upon
demand
and
the
borrower
must
return
the
loaned
securities
within
the
lesser
of
one
standard
settlement
period
or
five
business
days.
Although
risk
is
mitigated
by
the
collateral,
the
Fund
could
experience
a
delay
in
recovering
its
securities
and
possible
loss
of
income
or
value
if
the
borrower
fails
to
return
them.
In
addition,
there
is
a
risk
that
the
value
of
the
short-term
investments
will
be
less
than
the
amount
of
cash
collateral
required
to
be
returned
to
the
borrower.
The
Fund’s
agreement
with
Citibank
does
not
include
master
netting
provisions.
Non-cash
collateral
received
by
the
Fund
may
not
be
sold
or
repledged,
except
to
satisfy
borrower
default.
As
of
June
30,
2026,
the
Fund
did
not
have
any
securities
on
loan.
Unfunded
Loan
Commitments:
The
Fund
may
enter
into
unfunded
loan
commitments.
Unfunded
loan
commitments
may
be
partially
or
wholly
unfunded.
During
the
contractual
period,
the
Fund
is
obliged
to
provide
funding
to
the
borrower
upon
demand.
A
fee
is
earned
by
the
Fund
on
the
unfunded
loan
commitment
and
is
recorded
as
interest
income
on
the
Statement
of
Operations.
Unrealized
appreciation
or
depreciation,
if
any,
is
recorded
on
the
Statement
of
Assets
and
Liabilities.
As
of June
30,
2026,
the
Fund
had
no
unfunded
loan
commitment
outstanding.
Derivative
Instruments:
Futures
Contracts:
The
Fund
may
enter
into
contracts
for
the
future
delivery
of
securities
or
foreign
currencies
and
futures
contracts
based
on
a
specific
security,
class
of
securities,
foreign
currency
or
an
index,
and
purchase
or
sell
options
on
any
such
futures
contracts.
A
futures
contract
on
a
securities
index
is
an
agreement
obligating
either
party
to
pay,
and
entitling
the
other
party
to
receive,
while
the
contract
is
outstanding,
cash
payments
based
on
the
level
of
a
specified
securities
index.
No
physical
delivery
of
the
underlying
asset
is
made.
The
Fund
may
enter
into
futures
contracts
in
an
effort
to
hedge
against
market
risks.
The
acquisition
of
put
and
call
options
on
futures
contracts
will
give
the
Fund
the
right
(but
not
the
obligation),
for
a
specified
price,
to
sell
or
to
purchase
the
underlying
futures
contract,
upon
exercise
of
the
option,
at
any
time
during
the
option
period.
Futures
transactions
involve
brokerage
costs
and a
good
faith
margin
deposit,
known
as
initial
margin,
of
cash
or
government
securities
with
a
broker
or
custodian
is
required
to
initiate
and
maintain
open
positions
in
futures
contracts.
Subsequent
payments,
known
as
variation
margin,
are
made
or
received
by
the
Fund
based
on
the
change
in
the
market
value
of
the
position
and
are
recorded
as
unrealized
appreciation
or
depreciation
until
the
contract
is
closed
out,
at
which
time
the
gain
or
loss
is
realized.
The
Fund
may
lose
the
expected
benefit
of
futures
transactions
if
interest
rates,
exchange
rates
or
securities
prices
change
in
an
unanticipated
manner.
Such
unanticipated
changes
may
also
result
in
lower
overall
performance
than
if
the
Fund
had
not
entered
into
any
futures
transactions.
In
addition,
the
value
of
the
Fund’s
futures
positions
may
not
prove
to
be
perfectly
or
even
highly
correlated
with
the
value
of
its
portfolio
securities
or
foreign
currencies,
limiting
the
Fund’s
ability
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
28
(Unaudited)
to
hedge
effectively
against
interest
rate,
exchange
rate
and/or
market
risk
and
giving
rise
to
additional
risks.
There
is
no
assurance
of
liquidity
in
the
secondary
market
for
purposes
of
closing
out
futures
positions.
The
collateral
held
by
the
Fund
is
reflected
on
the
Statement
of
Assets
and
Liabilities
under
Futures
contracts
collateral.
Management
has
determined
that
no
offsetting
requirements
exist
as
a
result
of
their
conclusion
that
the
Fund
is
not
subject
to
master
netting
agreements
for
futures
contracts. During
the six
months ended
June
30,
2026,
the
Fund
entered
into
futures
contracts
primarily
for
the
strategy
of
gaining
exposure
to
a
particular
asset
class
or
securities
market.
Credit
Derivatives:
The Fund
may
enter
into
credit
derivatives,
including
centrally
cleared
credit
default
swaps
on
individual
obligations
or
credit
indices.
The
Fund
may
use
these
investments
(i)
as
alternatives
to
direct
long
or
short
investment
in
a
particular
security
or
securities,
(ii)
to
adjust
the
Fund’s
asset
allocation
or
risk
exposure,
or
(iii)
for
hedging
purposes.
The
use
by
the
Fund
of
centrally
cleared
credit
default
swaps
may
have
the
effect
of
creating
a
short
position
in
a
security.
Credit
derivatives
can
create
investment
leverage
and
may
create
additional
investment
risks
that
may
subject
the
Fund
to
greater
volatility
than
investments
in
more
traditional
securities,
as
described
in
the
Fund’s
Statement
of
Additional
Information.
Centrally
cleared
credit
default
swap
(“CDS”)
agreements
on
credit
indices
involve
one
party
making
a
stream
of
payments
(referred
to
as
the
buyer
of
protection)
to
another
party
(the
seller
of
protection)
in
exchange
for
the
right
to
receive
a
specified
return
in
the
event
of
a
write-down,
principal
shortfall,
interest
shortfall
or
default
of
all
or
part
of
the
referenced
entities
comprising
the
credit
index.
A
credit
index
is
a
basket
of
credit
instruments
or
exposures
designed
to
be
representative
of
a
specific
sector
of
the
credit
market
as
a
whole.
These
indices
are
made
up
of
reference
credits
that
are
judged
by
a
poll
of
dealers
to
be
the
most
liquid
entities
in
the
CDS.
The
counterparty
risk
for
cleared
swap
agreements
is
generally
lower
than
uncleared
over-the-counter
swap
agreements
because
generally
a
clearing
organization
becomes
substituted
for
each
counterparty
to
a
centrally
cleared
swap
agreement
and,
in
effect,
guarantees
each
party’s
performance
under
the
contract
as
each
party
to
a
trade
looks
only
to
the
clearing
organization
for
performance
of
financial
obligations.
However,
there
can
be
no
assurance
that
the
clearing
organization,
or
its
members,
will
satisfy
its
obligations
to
the
Fund.
The
Fund
may
enter
into
CDS
agreements
either
as
a
buyer
or
seller.
The
Fund
may
buy
protection
under
a
CDS
to
attempt
to
mitigate
the
risk
of
default
or
credit
quality
deterioration
in
one
or
more
individual
holdings
or
in
a
segment
of
the
fixed
income
securities
market.
The
Fund
may
sell
protection
under
a
CDS
in
an
attempt
to
gain
exposure
to
an
underlying
issuer’s
credit
quality
characteristics
without
investing
directly
in
that
issuer.
For
swaps
entered
with
an
individual
counterparty,
the
Fund
bears
the
risk
of
loss
of
the
uncollateralized
amount
expected
to
be
received
under
a
CDS
agreement
in
the
event
of
the
default
or
bankruptcy
of
the
counterparty.
CDS
agreements
are
generally
valued
at
a
price
at
which
the
counterparty
to
such
agreement
would
terminate
the
agreement.
The
Fund
may
also
enter
into
centrally
cleared
swaps.
Upon
entering
into
a
cleared
CDS,
the
Fund
may
be
required
to
deposit
with
the
broker
an
amount
of
cash
or
cash
equivalents
in
the
range
of
approximately
3%
to
6%
of
the
notional
amount
for
CDS
on
high
yield
debt
issuers
(this
amount
is
subject
to
change
by
the
clearing
organization
that
clears
the
trade).
This
amount,
known
as
“initial
margin,”
is
in
the
nature
of
a
performance
bond
or
good
faith
deposit
on
the
CDS
and
is
returned
to
a
Fund
upon
termination
of
the
CDS,
assuming
all
contractual
obligations
have
been
satisfied.
Subsequent
payments,
known
as
“variation
margin,”
to
and
from
the
broker
will
be
made
daily
as
the
price
of
the
CDS
fluctuates,
making
the
long
and
short
positions
in
the
CDS
contract
more
or
less
valuable,
a
process
known
as
"marking-to-market."
The
premium
(discount)
payments
are
built
into
the
daily
price
of
the
CDS
and
thus
are
amortized
through
the
variation
margin.
The
variation
margin
payment
also
includes
the
daily
portion
of
the
periodic
payment
stream.
The
maximum
potential
amount
of
future
payments
(undiscounted)
that
the
Fund
as
a
seller
of
protection
could
be
required
to
make
under
a
CDS
agreement
equals
the
notional
amount
of
the
agreement.
Notional
amounts
of
each
individual
CDS
agreement
outstanding
as
of
period end
for
which
the
Fund
is
the
seller
of
protection
are
disclosed
on
the
Schedule
of
Portfolio
Investments.
These
potential
amounts
would
be
partially
offset
by
any
recovery
values
of
the
respective
referenced
obligations,
upfront
payments
received
upon
entering
into
the
agreement,
periodic
interest
payments,
or
net
amounts
received
from
the
settlement
of
buy
protection
CDS
agreements
entered
into
by
the
Fund
for
the
same
referenced
entity
or
entities.
The
collateral
held
by
the
Fund
is
reflected
on
the
Statements
of
Assets
and
Liabilities
under
Deposit
with
broker
for
swap
agreements.
Management
has
determined
that
no
offsetting
requirements
exist
as
a
result
of
their
conclusion
that
the
Fund is
not
subject
to
master
netting
agreements
for
swaps
contracts.
The Fund
entered
into
centrally
cleared
CDS
agreements
primarily
for
the
strategy
of
asset
allocation
and
risk
exposure
management
during
the
period.
Summary
of
Derivative
Instruments:
The
following
table
summarizes
the
fair
values
of
derivative
instruments
on
the
Statement
of
Assets
and
Liabilities,
categorized
by
risk
exposure,
as
of
June
30,
2026 (amounts
in
thousands):
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
29
(Unaudited)
*Includes
cumulative
appreciation
(depreciation)
of
futures
contracts
and
swap
agreements
as
reported
on
the
Schedules
of
Portfolio
Investments.
Only
current
day’s
variation
margin
for
futures
contracts
and
swap
agreements
are
reported
within
the
Statement
of
Assets
and
Liabilities.
The
following
table
presents the
effect
of
derivative
instruments
on
the
Statement
of
Operations,
categorized
by
risk
exposure,
for
the period
ended
June
30,
2026 (amounts
in
thousands):
Average
Quarterly
Balances
of
Outstanding
Derivative
Financial
Instruments:
The
following
table
summarizes
the
volume
of
derivative
instruments
activity for
the
six
months
ended June
30,
2026,
categorized
by
derivative
instrument type
(amounts
in
thousands):
Investment
Transactions
and
Related
Income:
Investment
transactions
are
recorded
on
trade
date.
For
financial
reporting
purposes,
however,
investment
transactions
are
accounted
for
on
trade
date
or
the
last
business
day
of
the
reporting
period.
 Dividend
income
is
recorded
on
the
ex-dividend
date.
Non-cash
dividends
included
in
income,
if
any,
are
recorded
at
the
fair
value
of
the
securities
received.
Gains
or
losses
realized
on
sales
of
securities
are
recorded
on
the
identified
cost
basis. Interest
income
is
accrued
daily
and
recorded
using
the
effective
interest
method,
which
includes
the
amortization
of
premiums
and
accretion
of
discounts
on
debt
securities.
Paydown
gains
or
losses
on
applicable
securities,
if
any,
are
recorded
as
components
of
Interest
income
on
the
Statement
of
Operations.
The Fund
may
receive
other
income
from
investments
in
loan
assignments
and/or
unfunded
commitments,
including
amendment
fees,
consent
fees,
and
commitment
fees.
These
fees
are
recorded
as
income
when
received.
These
amounts,
if
received,
are
included
in
Interest
income
on
the
Statement
of
Operations. 
Mortgage
Dollar
Rolls:
The
Fund
may
enter
into
mortgage
dollar
roll
transactions
in
which
the
Fund
sells
a
mortgage-backed
security
to
a
counterparty
to
buy
back
similar,
but
not
identical,
securities
on
a
specific
future
date
at
a
predetermined
price.
Mortgage
dollar
rolls
may
be
renewed
by
a
new
sale
and
repurchased
with
a
cash
settlement
at
each
renewal
without
physical
delivery
of
the
securities.
Certain
risks
may
arise
upon
entering
into
mortgage
dollar
rolls
from
the
potential
inability
of
counterparties
to
meet
the
terms
of
their
commitments.
Additionally,
the
value
of
such
securities
may
change
adversely
before
the
Fund
is
able
to
repurchase
them.
Mortgage
dollar
rolls
are
treated
as
financing
transactions
unless
the
sale
and
repurchase
are
determined
to
involve
securities
that
are
not
substantially
the
same.
Therefore,
any
gain
or
loss
is
considered
unrealized
until
the
roll
reaches
ultimate
disposition
or
the
sale
and
repurchase
are
determined
to
involve
securities
that
are
not
substantially
the
same.
Income
is
generated
as
consideration
for
entering
into
these
transactions
and
is
included
in
mortgage
dollar
roll
income
on
the
Fund’s
Statement
of
Operations.
For
the six
months
ended
June
30,
2026,
there
were
no
mortgage
dollar
roll
transactions.
Assets
Liabilities
Futures
contracts*
Futures
contracts*
Swap
agreements*
Credit
Risk
Exposure:
–
–
(70,000)
Bond
VCT
Portfolio
.......................................................
$
–
$
–
$
70
Interest
Rate
Risk
Exposure:
219,000
(13,000)
–
Bond
VCT
Portfolio
.......................................................
219
13
–
Net
Realized
Gains
(losses)
from
Futures
Contracts
Net
Realized
Gains
(Losses)
from
Swap
Agreements
Net
Change
in
Unrealized
Appreciation/
Depreciation
on
Futures
Contracts
Net
Change
in
Unrealized
Appreciation/
Depreciation
on
Swap
Agreements
Credit
Risk
Exposure:
–
38,000
–
(53,000)
Bond
VCT
Portfolio
...............................
$
–
$
38
$
–
$
(53)
Interest
Rate
Risk
Exposure:
(645,000)
–
455,000
–
Bond
VCT
Portfolio
...............................
$
(645)
$
–
$
455
$
–
Bond
VCT
Portfolio
Futures
contracts:
Average
notional
value
of
contracts
—
long
..................................................................
$
29,610
Average
notional
value
of
contracts
—
short
..................................................................
(3,195)
Centrally
cleared
credit
default
swaps:
Average
notional
value
—
buy
protection
....................................................................
(4,219)
a
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
30
(Unaudited)
Foreign
Taxes:
The
Fund
may
be
subject
to
foreign
taxes
related
to
foreign
income
received
(a
portion
of
which
may
be
reclaimable),
capital
gains
on
the
sale
of
securities,
and
certain
foreign
currency
transactions.
All
foreign
taxes
are
recorded
in
accordance
with
the
applicable
regulations
and
rates
that
exist
in
the
foreign
jurisdictions
in
which
the
Fund
invests.
Federal
Income
Taxes:
The
Fund
intends
to
continue
to
qualify
as
a
regulated
investment
company
by
complying
with
the
provisions
available
to
certain
investment
companies,
as
defined
in
applicable
sections
of
the
Internal
Revenue
Code,
and
to
make
distributions
of
net
investment
income
and
net
realized
gains
sufficient
to
relieve
it
from
all,
or
substantially
all,
federal
income
taxes.
Accordingly,
no
provision
for
federal
income
taxes
is
required
in
the
financial
statements.
The
Fund
has
a
tax
year
end
of December
31.
For
the
six
months
ended
June
30,
2026,
the
Fund
did
not
incur
any
income
tax,
interest,
or
penalties,
and
has
recorded
no
liability
for
net
unrecognized
tax
benefits
relating
to
uncertain
tax
positions.
Management
of
the
Fund
has
reviewed
tax
positions
taken
in
tax
years
that
remain
subject
to
examination
by
all
major
tax
jurisdictions,
including
federal
(i.e.,
the
last
four
tax
years,
which
includes
the
current
fiscal
tax
year
end).
Management
believes
that
there
is
no
tax
liability
resulting
from
unrecognized
tax
benefits
related
to
uncertain
tax
positions
taken.
Allocations:
Expenses
directly
attributable
to the
Fund
are
charged
to the
Fund,
while
expenses
that
are
attributable
to
more
than
one
fund
in
the
Trust,
or
jointly
with
an
affiliated
trust,
are
allocated
among
the
respective
funds
in
the
Trust
and/or
an
affiliated
trust
based
upon
net
assets
or
another
appropriate
basis.
Income,
expenses
(other
than
class-specific
expenses
such
as
transfer
agent
fees,
state
registration
fees,
printing
fees,
and
12b-1
fees),
and
realized
and
unrealized
gains
or
losses
on
investments
are
allocated
to
each
class
of
shares
based
on
its
relative
net
assets
on
the
date
income
is
earned
or
expenses
and
realized
and
unrealized
gains
and
losses
are
incurred.
Fees
Paid
Indirectly:
Expense
offsets
to
custody
fees
that
arise
from
credits
on
cash
balances
maintained
on
deposit
are
reflected
on
the
Statement
of
Operations,
as
applicable,
as
Fees
paid
indirectly.
3.
Purchases
and
Sales:
Purchases
and sales
of
securities
(excluding
securities
maturing
less
than
one
year
from
acquisition)
for
the
six
months
ended
June
30,
2026,
were
as
follows
(amounts
in
thousands):
4.
Fees
and
Transactions
with
Affiliates
and
Related
Parties:
Investment
Advisory
Fees: 
Investment
advisory
services
are
provided
to
the
Fund
by
the
Adviser,
which
is
a
New
York
corporation
registered
as
an
investment
adviser
with
the
SEC.
Under
the
terms
of
the
Investment
Advisory
Agreement,
the
Adviser
is
entitled
to
receive
fees
accrued
daily
and
paid
monthly
at
an
annualized
rate
of 0.40%
of
the
Fund’s
average
daily
net
assets.
Amounts
incurred
and
paid
to
VCM
for
the six
months ended
June
30,
2026,
are
reflected
on
the
Statement
of
Operations
as
Investment
advisory
fees.
Administration
and
Servicing
Fees:
VCM
also
serves
as
the
Fund’s
administrator
and
fund
accountant.
Under
the Administration
and
Fund
Accounting
Agreement,
VCM
is
paid
an
administration
fee
based
on
a
percentage
of
the
average
daily
net
assets
of
all
Companies
and
Funds
(as
defined
in
the
Administration
and
Fund
Accounting
Agreement)
together
with
all
other
registered
investment
companies
for
which
VCM
acts
as
administrator,
and allocated
to the
Fund
on
a
pro
rata
basis
calculated
based
on
the
Fund’s
average
daily
net
assets.
The
tiered
rates
at
which
VCM
is
paid
by
the
Fund
are
shown
in
the
table
below:
Excluding
U.S.
Government
Securities
U.S.
Government
Securities
Purchases
Sales
Purchases
Sales
Bond
VCT
Portfolio
..............................................
$
17,983
$
16,183
$
129,952
$
120,288
Annual
Charge
Up
to
$15
billion
Over
$15
billion
-
$30
billion
Over
$30
billion
-
$85
billion
Over
$85
billion
Bond
VCT
Portfolio
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
0.08%,
plus
0.05%,
plus
0.04%,
plus
0.03%
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
31
(Unaudited)
Amounts
incurred
for
the
six
months
ended
June
30,
2026,
are
reflected
on
the
Statement
of
Operations
as
Administration
fees.
Effective
February
9,
2026,
Citi
Fund
Services
Ohio,
Inc.
(“Citi”),
an
affiliate
of
Citibank,
acts
as
sub-administrator
and
sub-fund
accountant
to
the
Fund
pursuant
to
a
Sub-Administration
and
Sub-Fund
Accounting
Services
Agreement
between
VCM
and
Citi.
VCM
pays
Citi
a
fee
for
providing
these
services.
The
Fund
reimburses
VCM
and
Citi
for
out-of-pocket
expenses
incurred
in
providing
these
services,
including
costs
associated
with
the
Chief
Compliance
Officer,
and
implementing
new
reports
required
by
new
rules
adopted
by
the
SEC
under
the
1940
Act.
Prior
to
February
9,
2026,
BNY
Mellon
served
as
sub-administrator
and
sub-fund
accountant
for
the
Fund.
The
total
amounts
incurred
and
paid
for the six
months
ended June
30,
2026,
are
reflected
within
the
Sub-Administration
fees
on
the
Statement
of
Operations.
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
32
(Unaudited)
Transfer
Agency
Fees:
Effective February
9,
2026,
FIS
Investor
Services
LLC
serves
as
the
Fund’s
transfer
agent.
Under
the
Transfer
Agent
Agreement,
the
Trust
pays
FIS
a
fee
for
its
services
and
reimburses
FIS
for
all
of its
reasonable
out-of-pocket
expenses
incurred
in
providing
these
services.
Prior
to February
9,
2026,
BNY
Mellon
Investment
Servicing
(US)
Inc.
served
as
the
transfer
agent
to
the
Fund at
negotiated
rates
where
transfer
agent
fees
included
sub-transfer
agent
expenses
incurred
through
the
Fund’s
omnibus
relationship
contracts.
In
addition,
the
Fund
would
reimburse
out-of-pocket
expenses
incurred
by
the
former
transfer
agent
related
to
shareholder
communications
activities
such
as
proxy
and
statement
mailings,
and
outgoing
phone
calls.
Total
transfer
agent
fees
incurred
for
the
six
months ended
June
30,
2026,
are
reflected
on
the
Statement
of
Operations
as
Transfer
agent
fees.
Sub-Transfer
Agency
Fees:
Effective
February
9,
2026,
the
Fund
has
entered
into
Sub-Transfer
Agency
Agreements
with
financial
intermediaries
that
provide
recordkeeping,
processing,
shareholder
communications
and
other
services
to
customers
of
the
intermediaries
that
hold
positions
in
the
Fund
and
have
agreed
to
compensate
the
intermediaries
for
providing
those
services.
Intermediaries
transact
with
the
Fund
primarily
through
the
use
of
omnibus
accounts
on
behalf
of
their
customers
who
hold
positions
in
the
Fund.
These
services
would
have
been
provided
by
the
Fund’s
transfer
agent
and
other
service
providers
if
the
shareholders'
accounts
were
maintained
directly
at
the
Fund’s
transfer
agent.
Prior
to
February
9,
2026,
BNY
Mellon
served
as
sub-transfer
agent.
Total
sub-transfer
agent
fees
incurred
for
the six
months
ended
June
30,
2026,
are
reflected
on
the
Statement
of
Operations
as
Sub-Transfer
agent
fees.
Distributor/Underwriting
Services:
Victory
Capital
Services, Inc.
(the
“Distributor”),
an
affiliate
of
the
Adviser,
serves
as
Distributor
for
the
continuous
offering
of
the
shares
of
the
Fund
pursuant
to
a
Distribution
Agreement
between
the
Distributor
and
the
Trust
and
receives
no
fee
or
other
compensation
for
these
services.
Pursuant
to
the
Distribution
and
Service
Plans
adopted
in
accordance
with
Rule
12b-1
under
the
1940
Act,
the
Distributor
may
receive
a
monthly
distribution
and
service
fee,
at
an
annual
rate
of
up
to
0.25%
of
the
average
daily
net
assets
of
Class
II.
The
distribution
and
service
fees
paid
to
the
Distributor
may
be
used
by
the
Distributor
to
pay
for
activity
primarily
intended
to
result
in
the
sale
of
Class
II.
Amounts
incurred
and
paid
to
the
Distributor
for
the
six
months
ended
June
30,
2026, are
reflected
on
the
Statement
of
Operations
as
12b-1
fees.
Other
Fees:
Effective
February
9,
2026,
Citibank
serves
as
the
Fund's
custodian.
The
Fund
pays
Citibank
a
fee
for
providing
these
services.
Prior
to
February
9,
2026,
BNY
Mellon
served
as
the
Fund's
custodian. Total
custodian
fees
incurred
for
the
period ended
June
30,
2026, are
reflected
on
the
Statement
of
Operations
as
Custodian
fees.
Sidley
Austin
LLP
provides
legal
services
to
the
Trust.
The
Adviser
has
entered
into
an
expense
limitation
agreement
with the Fund.
Under
the
terms
of
the
agreement,
the
Adviser
has
agreed
to
waive
fees
or
reimburse
certain
expenses
to
the
extent
that
ordinary
operating
expenses
incurred
by
certain
classes
of
the
Fund
in
any
fiscal
year
exceed
the
expense limits
for
such
classes
of the
Fund.
Such
excess
amounts
will
be
the
liability
of
the
Adviser. Acquired
fund
fees
and
expenses,
interest,
taxes,
brokerage
commissions,
other
expenditures which
are
capitalized
in
accordance
with
GAAP,
and
other
extraordinary
expenses
not
incurred
in
the
ordinary
course
of the
Fund’s
business
are
excluded
from
the
expense
limits.
As
of
June
30,
2026,
the
expense
limits
(excluding
voluntary
waivers) were
as
follows:
Under
the
terms
of
the
expense
limitation
agreement,
the
Fund
has
agreed
to
repay
fees
and
expenses
that
were
waived
or
reimbursed
by
the
Adviser
for
a
period
of
up
to two
years
(twenty-four
(24)
months)
after
the
waiver
or
reimbursement
took
place,
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
Fund
has
not
recorded
any
amounts
available
to
be
repaid
to
the
Adviser
as
a
commitment
and
contingency
liability
due
to
an
assessment
that
such
repayments
are
not
probable
at
June
30,
2026.
For
the
six
months
ended
June
30,
2026,
the
following
recoupment
amount was
paid
to
the
Adviser
(amounts
in
thousands):
(a)    
Rounds
to
less
than
$1
thousand.
As
of June
30,
2026,
the
Fund
had
no amounts available
to
be
repaid
to
the
Adviser.
In
effect
until
April
1,
2028
Class
I
Class
II
Bond
VCT
Portfolio
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
0.48%
0.73%
Amount
Bond
VCT
Portfolio
...................................................................................
$
—(a)
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
33
(Unaudited)
The
Adviser
may
voluntarily
waive
or
reimburse
additional
fees
and
expenses
or
make
other
payments to
assist
the
Fund
in
maintaining
competitive
expense
ratios.
Except
as
noted
above,
voluntary
waivers
and
reimbursements
applicable
to
the
Fund
are
not
available
to
be
recouped
at
a
future
time.
There
were
no
voluntary
waivers
or
reimbursements
for
the six
months
ended
June
30,
2026.
Certain
officers
and/or
interested
trustees
of
the
Fund
are
also
officers
and/or
employees
of
the
Adviser,
administrator,
fund
accountant,
and
Distributor.
5.
Risks:
The
following
describes
principal
risks
that
you
may
assume
as
an
investor
in
the
Fund.
The
Fund’s
prospectus
contains
unaudited
information
regarding
the
Fund’s
principal
risks.
Please
refer
to
that
document
when
considering
the
Fund’s
principal
risks.
The
Fund
may
be
subject
to
other
risks
in
addition
to
these
identified
risks.
Market
Risk
—
The
market
prices
of
securities
or
other
assets
held
by
the
Fund
may
go
up
or
down,
sometimes
rapidly
or
unpredictably,
due
to
general
market
conditions,
such
as
real
or
perceived
adverse
economic,
political,
or
regulatory
conditions,
political
instability,
recessions,
inflation,
changes
in
interest
or
currency
rates,
lack
of
liquidity
in
the
bond
markets,
the
spread
of
infectious
illness
or
other
public
health
issues,
weather
or
climate
events,
armed
conflict,
market
disruptions
caused
by
tariffs,
trade
disputes,
sanctions
or
other
government
actions,
or
other
factors
or
adverse
investor
sentiment.
If
the
market
prices
of
the
Fund’s
securities
and
assets
fall,
the
value
of
your
investment
will
go
down.
A
change
in
financial
condition
or
other
event
affecting
a
single
issuer
or
market
may
adversely
impact
securities
markets
as
a
whole.
Interest
Rate Risk
— The market
prices
of
the
Fund's
fixed
income
securities
may
fluctuate
significantly
when
interest
rates
change.
The
value
of
your
investment
will
generally
go
down
when
interest
rates
rise.
A
rise
in
rates
tends
to
have
a
greater
impact
on
the
prices
of
longer
term
or
duration
securities.
Duration
is
a
measure
of
a
fixed
income
security’s
sensitivity
to
changes
in
interest
rates.
For
example,
if
interest
rates
increase
by
1%,
the
value
of
a
fund’s
portfolio
with
a
portfolio
duration
of
ten
years
would
be
expected
to
decrease
by
10%,
all
other
things
being
equal.
A
general
rise
in
interest
rates
could
adversely
affect
the
price
and
liquidity
of
fixed
income
securities
and
could
also
result
in
increased
redemptions
from
the
Fund.
The
maturity
of
a
security
may
be
significantly
longer
than
its
effective
duration.
A
security’s
maturity
and
other
features
may
be
more
relevant
than
its
effective
duration
in
determining
the
security’s
sensitivity
to
other
factors
affecting
the
issuer
or
markets
generally,
such
as
changes
in
credit
quality
or
in
the
yield
premium
that
the
market
may
establish
for
certain
types
of
securities
(sometimes
called
“credit
spread”).
In
general,
the
longer
its
maturity
the
more
a
security
may
be
susceptible
to
these
factors.
When
the
credit
spread
for
a
fixed
income
security
goes
up
or
“widens,”
the
value
of
the
security
generally
will
go
down.
Rising
interest
rates
can
lead
to
increased
default
rates,
as
issuers
of
floating
rate
securities
find
themselves
faced
with
higher
payments.
Unlike
fixed
rate
securities,
floating
rate
securities
generally
will
not
increase
in
value
if
interest
rates
decline.
Changes
in
interest
rates
also
will
affect
the
amount
of
interest
income
the
Fund
earns
on
its
floating
rate
investments.
Credit Risk
—
If
an
issuer
or
guarantor
of
a
security
held
by
the
Fund
or
a
counterparty
to
a
financial
contract
with
the
Fund
defaults
on
its
obligation
to
pay
principal
and/or
interest,
has
its
credit
rating
downgraded
or
is
perceived
to
be
less
creditworthy,
or
the
credit
quality
or
value
of
any
underlying
assets
declines,
the
value
of
your
investment
will
typically
decline.
The
values
of
lower-quality
debt
securities
tend
to
be
particularly
sensitive
to
these
changes.
Changes
in
actual
or
perceived
creditworthiness
may
occur
quickly.
The
values
of
securities
also
may
decline
for
a
number
of
other
reasons
that
relate
directly
to
the
issuer,
such
as
management
performance,
financial
leverage
and
reduced
demand
for
the
issuer’s
goods
and
services,
as
well
as
the
historical
and
prospective
earnings
of
the
issuer
and
the
value
of
its
assets.
The
Fund
also
could
be
delayed
or
hindered
in
its
enforcement
of
rights
against
an
issuer,
guarantor
or
counterparty.
6.
Interfund
Lending:
The
Trust
and
the
Adviser
rely
on
an
exemptive
order
granted
by
the
SEC
in
March
2017
(the
“Order”),
permitting
the
establishment
and
operation
of
an
Interfund
Lending
Facility
(the
“Facility”).
The
Facility
allows
the
Fund
to
directly
lend
and
borrow
money
to
or
from
any
other
fund
in
the
Victory
Funds
Complex
that
is
permitted
to
participate
in
the
Facility,
relying
upon
the
Order
at
rates
beneficial
to
both
the
borrowing
and
lending
funds.
Advances
under
the
Facility
are
allowed
for
temporary
or
emergency
purposes,
including
the
meeting
of
redemption
requests
that
otherwise
might
require
the
untimely
disposition
of
securities,
and
are
subject
to
each
Fund’s
borrowing
restrictions.
The
interfund
loan
rate
is
determined,
as
specified
in
the
Order,
by
averaging
the
current
repurchase
agreement
rate
and
the
current
bank
loan
rate.
As
a
Borrower
(as
defined
in
the
Order),
interest
charged
to
the
Fund,
if
any,
during
the
period,
is
reflected
on
the
Statement
of
Operations
under
Interfund
lending
fees.
As
a
Lender
(as
defined
in
the
Order),
interest
earned
by
the
Fund,
if
any,
during
the
period,
is
reflected
on
the
Statement
of
Operations
under
Interfund
lending.
The
Fund
did
not
utilize
or
participate
in
the
Facility
during
the
six
months
ended
June
30,
2026.
7.
Federal
Income
Tax
Information:
Distributions
from
the
Fund's
net
investment
income
are declared
daily
and
distributed
on
the
last
business
day
of
each
month.
Distributable
net
realized
gains,
if
any,
are
generally
declared
and
paid
at
least
annually. 
The
amounts
of
dividends
from
net
investment
income
and
distributions
from
net
realized
gains
(collectively,
distributions
to
shareholders)
are
determined
in
accordance
with
federal
income
tax
regulations,
which
may
differ
from
GAAP.
To
the
extent
these
“book/tax”
differences
are
permanent
in
nature
(e.g.,
net
operating
loss
and
distribution
reclassification,
utilized
earnings
and
profit
distributions
to
shareholders
on
redemption
of
shares
as
part
of
the
dividends
paid
deduction
for
income
tax
purposes),
such
amounts
are
reclassified
within
the
components
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
34
(Unaudited)
of
net
assets
based
on
their
federal
tax-basis
treatment;
temporary
differences
(e.g.,
wash
sales)
do
not
require
reclassification.
To
the
extent
dividends
and
distributions
exceed
net
investment
income
and
net
realized
gains
for
tax
purposes,
they
are
reported
as
distributions
of
capital.
Net
investment
losses
incurred
by
the
Fund
may
be
reclassified
as
an
offset
to
capital
on
the
accompanying
Statement
of
Assets
and
Liabilities.
The
tax
character
of
current
year
distributions
paid
and
the
tax
basis
of
the
current
components
of
accumulated
earnings
(losses)
will
be
determined
at
the
end
of
the
current
tax
year.
As
of
the
tax
year
ended December
31,
2025,
the
Fund
had
net
capital
loss
carryforwards as shown
in
the
table
below.
It
is
unlikely
that
the
Board
will
authorize
a
distribution
of
capital
gains
realized
in
the
future
until
the
capital
loss
carryforwards
have
been
used
(amounts
in
thousands):
8.
Affiliated
Securities:
An
affiliated
security
is
a
security
in
which
the
Fund
has
ownership
of
at
least
5%
of
the issuer's
outstanding
voting
shares,
an
investment
company
managed
by
VCM,
or
an
issuer
under
common
control
with the
Fund
or
VCM.
The
Fund
does
not
invest
in
affiliated
securities
for
the
purpose
of
exercising
management
or
control.
These
securities
are
noted
as
affiliated
on
the
Fund’s
Schedule
of
Portfolio
Investments.
The
financial
statements
of
the
underlying
funds
can
be
found
in
shareholder
reports
filed
with
the
SEC
by
each
such
underlying
fund
semi-annually
on
Form
N-CSR
and
are
available
for
download
from
both
the
SEC’s
as
well
as
each
respective
underlying
fund’s
website.
Transactions
in
affiliated
securities
during
the six
months
ended
June
30,
2026,
were
as
follows
(amounts
in
thousands,
except
shares):
9.
Segment
Reporting:
The
Adviser’s
Management
Committee
acts
as
the
Fund’s
Chief
Operating
Decision
Maker
(“CODM”).
The
Fund
represents
a
single
operating
segment,
as
the
CODM
monitors
the
operating
results
of
the
Fund
as
a
whole
and
the
Fund’s
long-term
strategic
asset
allocation
is
predetermined
in
accordance
with
the
Fund's
single
investment
objective.
The
financial
information
in
the
form
of
the
Fund’s
portfolio
composition,
total
returns,
expense
ratios,
and
changes
in
net
assets,
which
are
used
by
the
CODM
to
assess
the
segment’s
performance
versus
the
Fund’s
comparative
benchmarks
and
to
make
resource
allocation
decisions
for
the
Fund’s
single
segment,
is
consistent
with
that
presented
within
the
Fund’s
financial
statements.
Segment
assets
are
reflected
on
the
accompanying
Statement
of
Assets
and
Liabilities
as
“total
assets”
and
significant
segment
expenses
are
listed
on
the
accompanying
Statement
of
Operations.
Short-Term
Amount
Long-Term
Amount
Total
Bond
VCT
Portfolio
....................................................
$
(4,996)
$
(11,437)
$
(16,433)
Fair
Value
12/31/2025
Purchases
at
Cost
Proceeds
from
Sales
Net
Realized
Gains
(Losses)
Net
Change
in
Unrealized
Appreciation/
Depreciation
Fair
Value
6/30/2026
Shares
Dividend
Income
Capital
Gain
Distributions
Bond
VCT
Portfolio
Victory
Pioneer
CAT
Bond
Fund,
Class
R6
.........
$
638
$
—
$
—
$
—
$
20
$
658
57,939
$
—
$
—
Victory
Pioneer
ILS
Interval
Fund
................
4,575
—
—
—
408
4,983
473,646
—
—
$
5,213
$
—
$
—
$
—
$
428
$
5,641
531,585
$
—
$
—
Victory
Funds
P.O.
Box
182593
Columbus,
Ohio
43218-2593
Visit
our
website
at:
vcm.com
Call
Victory
at:
(800)
539-3863
19617-0826
June
30,
2026
Semi-Annual:
Full
Financials
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Equity
Income
VCT
Portfolio
TABLE
OF
CONTENTS
Victory
Variable
Insurance
Funds
II
1
The
Fund
is
distributed
by
Victory
Capital
Services,
Inc.
Victory
Capital
Management
Inc.
is
the
investment
adviser
to
the
Fund
and
receives
fees
from
the
Fund
for
performing
services
for
the
Fund.
This
report
is
not
authorized
for
distribution
to
prospective
investors
unless
preceded
or
accompanied
by
a
current
prospectus
of
the
Fund.
For
additional
information
about
any
Victory
Fund,
including
fees,
expenses,
and
risks,
view
our
prospectus
online
at
vcm.com
or
call
800-539-3863.
Read
it
carefully
before
you
invest
or
send
money.
The
information
in
this
report
is
based
on
data
obtained
from
recognized
services
and
sources
and
is
believed
to
be
reliable.
Any
opinions,
projections,
or
recommendations
in
this
report
are
subject
to
change
without
notice
and
are
not
intended
as
individual
investment
advice.
Past
investment
performance
of
the
Fund,
markets
or
securities
mentioned
herein
should
not
be
considered
to
be
indicative
of
future
results
•
NOT
FDIC
INSURED
•
NO
BANK
GUARANTEE
•
MAY
LOSE
VALUE
Schedule
of
Portfolio
Investments
(Form
N-CSR
Item
6)
2
Financial
Statements
(Form
N-CSR
Item
7)
Statement
of
Assets
and
Liabilities
4
Statement
of
Operations
5
Statements
of
Changes
in
Net
Assets
6
Financial
Highlights
8
Notes
to
Financial
Statements
(Form
N-CSR
Item
7)
10
Schedule
of
Portfolio
Investments
June
30,
2026
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Equity
Income
VCT
Portfolio
2
(Unaudited)
See
notes
to
financial
statements.
Security
Description
Shares
a
Value
(000)
Common
Stocks
(99.7%)
Communication
Services
(6.3%):
Comcast
Corp.
,
Class
A
..................................................
76,181
$
1,871
The
Walt
Disney
Co.
....................................................
19,244
1,852
Verizon
Communications,
Inc.
..............................................
19,420
822
4,545
Consumer
Discretionary
(7.7%):
Darden
Restaurants,
Inc.
..................................................
2,516
518
Ford
Motor
Co.
........................................................
107,434
1,493
Lowe's
Cos.,
Inc.
.......................................................
7,055
1,556
The
Home
Depot,
Inc.
...................................................
2,154
760
The
TJX
Cos.,
Inc.
......................................................
8,196
1,242
5,569
Consumer
Staples
(7.3%):
Molson
Coors
Beverage
Co.
,
Class
B
.........................................
17,516
682
Mondelez
International,
Inc.
,
Class
A
.........................................
8,245
477
PepsiCo,
Inc.
..........................................................
7,114
963
Target
Corp.
..........................................................
10,548
1,378
The
Hershey
Co.
.......................................................
5,231
918
The
Kraft
Heinz
Co.
.....................................................
38,289
904
5,322
Energy
(9.3%):
Chevron
Corp.
.........................................................
2,062
342
ConocoPhillips
Co.
.....................................................
17,899
1,861
Devon
Energy
Corp.
.....................................................
32,368
1,337
Expand
Energy
Corp.
....................................................
5,194
474
Exxon
Mobil
Corp.
.....................................................
20,114
2,750
6,764
Financials
(22.3%):
American
International
Group,
Inc.
..........................................
16,892
1,259
Bank
of
America
Corp.
...................................................
52,065
2,967
JPMorgan
Chase
&
Co.
..................................................
8,576
2,807
Morgan
Stanley
........................................................
8,292
1,733
Northern
Trust
Corp.
....................................................
10,416
1,811
State
Street
Corp.
.......................................................
12,976
2,201
Truist
Financial
Corp.
....................................................
31,422
1,565
Wells
Fargo
&
Co.
......................................................
22,586
1,867
16,210
Health
Care
(12.2%):
AbbVie,
Inc.
..........................................................
1,761
443
Bristol-Myers
Squibb
Co.
.................................................
27,003
1,556
Johnson
&
Johnson
.....................................................
7,013
1,781
Labcorp
Holdings,
Inc.
...................................................
1,378
386
Medtronic
PLC
........................................................
20,588
1,610
Sanofi
SA
,
ADR
........................................................
37,619
1,605
UnitedHealth
Group,
Inc.
.................................................
1,068
444
Zimmer
Biomet
Holdings,
Inc.
.............................................
11,848
1,020
8,845
Industrials
(14.5%):
3M
Co.
..............................................................
13,142
2,128
Carrier
Global
Corp.
.....................................................
5,716
419
Deere
&
Co.
..........................................................
1,422
902
Honeywell
Aerospace,
Inc.
(a)
..............................................
4,451
984
Honeywell
International,
Inc.
..............................................
4,451
996
Owens
Corning
........................................................
6,461
1,027
Rockwell
Automation,
Inc.
................................................
1,147
568
Union
Pacific
Corp.
.....................................................
3,565
970
United
Parcel
Service,
Inc.
,
Class
B
..........................................
23,413
2,517
10,511
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Equity
Income
VCT
Portfolio
3
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
June
30,
2026
See
notes
to
financial
statements.
Security
Description
Shares
a
Value
(000)
Information
Technology
(14.0%):
Accenture
PLC
,
Class
A
..................................................
8,741
$
1,088
Cisco
Systems,
Inc.
.....................................................
18,053
2,120
HP,
Inc.
..............................................................
27,097
595
International
Business
Machines
Corp.
........................................
7,067
1,987
Microsoft
Corp.
........................................................
2,078
775
NetApp,
Inc.
..........................................................
4,117
637
QUALCOMM,
Inc.
.....................................................
5,175
956
Salesforce,
Inc.
........................................................
4,881
765
Texas
Instruments,
Inc.
...................................................
4,115
1,227
10,150
Materials
(1.4%):
LyondellBasell
Industries
NV
,
Class
A
........................................
4,433
233
PPG
Industries,
Inc.
.....................................................
6,526
792
1,025
Real
Estate
(0.6%):
AvalonBay
Communities,
Inc.
..............................................
2,210
417
Utilities
(4.1%):
CMS
Energy
Corp.
......................................................
13,015
995
Duke
Energy
Corp.
......................................................
11,123
1,408
Eversource
Energy
......................................................
7,581
548
2,951
Total
Common
Stocks
(Cost
$56,247)
a
a
a
72,309
Total
Investments
(Cost
$56,247)
—
99.7%
72,309
Other
assets
in
excess
of
liabilities
—  0.3%
228
NET
ASSETS
-
100.00%
$
72,537
At
June
30,
2026,
the
Fund's
investments
in
foreign
securities
were
5.9%
of
net
assets.
(a)
Non-income
producing
security.
ADR
—
American
Depositary
Receipt
PLC
—
Public
Limited
Company
Statement
of
Assets
and
Liabilities
June
30,
2026
4
See
notes
to
financial
statements.
Victory
Variable
Insurance
Funds
II
(Amounts
in
Thousands,
Except
Per
Share
Amounts)
(Unaudited)
Victory
Pioneer
Equity
Income
VCT
Portfolio
Assets:
Investments,
at
value
(Cost
$56,247)
$
72,309
Cash
244
Receivables:
Dividends
and
interest
61
Capital
shares
issued
1
From
Adviser
—
(a)
Reclaims
18
Prepaid
expenses
1
Total
Assets
72,634
Liabilities:
Payables:
Capital
shares
redeemed
30
Accrued
expenses
and
other
payables:
Investment
advisory
fees
40
Administration
fees
3
12b-1
fees
2
Other
accrued
expenses
22
Total
Liabilities
97
Commitments
and
contingencies
(Note
4
)
Net
Assets:
Capital
50,408
Total
accumulated
earnings
(loss)
22,129
Net
Assets
$
72,537
Net
Assets:
Class
I
$
49,565
Class
II
22,972
Total
$
72,537
Shares
(unlimited
number
of
shares
authorized
with
a
par
value
of
$0.001
per
share):
Class
I
3,849
Class
II
1,723
Total
5,572
Net
asset
value,
offering
and
redemption
price
per
share:(b)
Class
I
$
12.88
Class
II
13.33
(a)
Rounds
to
less
than
$1
thousand.
(b)
Per
share
amount
may
not
recalculate
due
to
rounding
of
net
assets
and/or
shares
outstanding.
Statement
of
Operations
For
the
Six
Months
Ended
June
30,
2026
5
See
notes
to
financial
statements.
Victory
Variable
Insurance
Funds
II
(Amounts
in
Thousands)
(Unaudited)
Victory
Pioneer
Equity
Income
VCT
Portfolio
Investment
Income:
Dividends
$
1,119‌
Interest
11‌
Foreign
tax
withholding
(
25‌
)
Total
Income
1,105‌
Expenses:
Investment
advisory
fees
240‌
Administration
fees
16‌
Sub-Administration
fees
6‌
12b-1
fees
—
Class
II
30‌
Custodian
fees
2‌
Trustees'
fees
3‌
Legal
and
audit
fees
21‌
Other
expenses
4‌
Total
Expenses
322‌
Expenses
waived/reimbursed
by
Adviser
(
2‌
)
Net
Expenses
320‌
Net
Investment
Income
(Loss)
785‌
Realized/Unrealized
Gains
(Losses)
from
Investments:
Net
realized
gains
(losses)
from
investment
securities
6,335‌
Net
change
in
unrealized
appreciation/depreciation
on
investment
securities
(
634‌
)
Net
realized/unrealized
gains
(losses)
on
investments
5,701‌
Change
in
net
assets
resulting
from
operations
$
6,486‌
6
(Amounts
in
Thousands)
Victory
Variable
Insurance
Funds
II
Statements
of
Changes
in
Net
Assets
See
notes
to
financial
statements.
Victory
Pioneer
Equity
Income
VCT
Portfolio
Six
Months
Ended
June
30,
2026
(Unaudited)
Year
Ended
December
31,
2025*
From
Investment
Activities:
Operations:
Net
Investment
Income
(Loss)
$
785‌
$
1,613‌
Net
realized
gains
(losses)
6,335‌
(116‌)
Net
change
in
unrealized
appreciation/depreciation
(634‌)
6,497‌
Change
in
net
assets
resulting
from
operations
6,486‌
7,994‌
Distributions
to
Shareholders:
Class
I
(627‌)
(9,106‌)
Class
II
(268‌)
(3,686‌)
Change
in
net
assets
resulting
from
distributions
to
shareholders
(895‌)
(12,792‌)
Change
in
net
assets
resulting
from
capital
transactions
(6,411‌)
297‌
Change
in
net
assets
(820‌)
(4,501‌)
Net
Assets:
Beginning
of
period
73,357‌
77,858‌
End
of
period
$
72,537‌
$
73,357‌
*
Pioneer
Equity
Income
VCT
Portfolio
(the
“Predecessor
Fund”)
reorganized
with
the
Fund
effective
April
1,
2025
(the
“Reorganization”).
The
Predecessor
Fund
is
the
accounting
survivor
of
the
Reorganization
and
shareholders
holding
Class
I
and
Class
II
shares
of
the
Predecessor
Fund
received
Class
I
and
Class
II
shares
of
the
Fund,
respectively.
7
(Amounts
in
Thousands)
Victory
Variable
Insurance
Funds
II
Statements
of
Changes
in
Net
Assets
(continued)
See
notes
to
financial
statements.
Victory
Pioneer
Equity
Income
VCT
Portfolio
Six
Months
Ended
June
30,
2026
(Unaudited)
Year
Ended
December
31,
2025*
Capital
Transactions:
Class
I
Proceeds
from
shares
issued
$
396‌
$
991‌
Distributions
reinvested
627‌
9,107‌
Cost
of
shares
redeemed
(5,922‌)
(10,138‌)
Total
Class
I
$
(4,899‌)
$
(40‌)
Class
II
Proceeds
from
shares
issued
$
1,438‌
$
3,156‌
Distributions
reinvested
268‌
3,686‌
Cost
of
shares
redeemed
(3,218‌)
(6,504‌)
Total
Class
II
$
(1,512‌)
$
338‌
Change
in
net
assets
resulting
from
capital
transactions
$
(6,411‌)
$
297‌
Share
Transactions:
Class
I
Issued
31‌
80‌
Reinvested
50‌
814‌
Redeemed
(469‌)
(846‌)
Total
Class
I
(388‌)
48‌
Class
II
Issued
109‌
252‌
Reinvested
21‌
318‌
Redeemed
(244‌)
(507‌)
Total
Class
II
(114‌)
63‌
Change
in
Shares
(502‌)
112‌
*
Pioneer
Equity
Income
VCT
Portfolio
(the
“Predecessor
Fund”)
reorganized
with
the
Fund
effective
April
1,
2025
(the
“Reorganization”).
The
Predecessor
Fund
is
the
accounting
survivor
of
the
Reorganization
and
shareholders
holding
Class
I
and
Class
II
shares
of
the
Predecessor
Fund
received
Class
I
and
Class
II
shares
of
the
Fund,
respectively.
Victory
Variable
Insurance
Funds
II
Financial
Highlights
For
a
Share
Outstanding
Throughout
Each
Period
8
See
notes
to
financial
statements.
NOTE:
The
above
financial
highlights
do
not
reflect
the
deduction
of
non-fund
expenses
associated
with
variable
insurance
products,
such
as
mortality
and
expense
risk
charges,
separate
account
charges,
and
sales
charges.
Victory
Pioneer
Equity
Income
VCT
Portfolio
Class
I*
Six
Months
Ended
June
30,
2026
(Unaudited)
Year
Ended
December
31,
2025
Year
Ended
December
31,
2024
Year
Ended
December
31,
2023
Year
Ended
December
31,
2022
Year
Ended
December
31,
2021
Net
Asset
Value,
Beginning
of
Period
$11.95
$12.94
$14.74
$15.13
$19.21
$15.51
Investment
Activities:
Net
investment
income
(loss)(a)
0.14
0.27
0.31
0.27
0.28
0.28
Net
realized
and
unrealized
gains
(losses)
0.95
1.01
1.11
0.80
(1.96)
3.68
Total
from
Investment
Activities
1.09
1.28
1.42
1.07
(1.68)
3.96
Distributions
to
Shareholders
from:
Net
investment
income
(0.16)
(0.28)
(0.32)
(0.29)
(0.30)
(0.26)
Net
realized
gains
—
(1.99)
(2.90)
(1.17)
(2.10)
—
Total
Distributions
(0.16)
(2.27)
(3.22)
(1.46)
(2.40)
(0.26)
Net
Asset
Value,
End
of
Period
$12.88
$11.95
$12.94
$14.74
$15.13
$19.21
Total
Return(b)(c)
9.17%
11.40%
11.26%
7.47%
(7.76)%
25.70%
Ratios
to
Average
Net
Assets:
Net
Expenses(d)(e)
0.79%
0.78%
0.79%
0.83%
0.78%
0.80%
Net
Investment
Income
(Loss)(d)
2.21%
2.22%
2.24%
1.84%
1.70%
1.59%
Gross
Expenses(d)(e)
0.79%
0.78%
0.79%
0.83%
0.78%
0.80%
Supplemental
Data:
Net
Assets
at
end
of
period
(000's)
$49,565
$50,633
$54,223
$55,500
$67,651
$87,047
Portfolio
Turnover(b)(f)
22%
38%
68%
81%
36%
28%
*
Pioneer
Equity
Income
VCT
Portfolio
(the
“Predecessor
Fund”)
reorganized
with
the
Fund
effective
April
1,
2025
(the
“Reorganization”).
The
Predecessor
Fund
is
the
accounting
survivor
of
the
Reorganization
and
shareholders
holding
Class
I
and
Class
II
shares
of
the
Predecessor
Fund
received
Class
I
and
Class
II
shares
of
the
Fund,
respectively.
(a)
Per
share
net
investment
income
(loss)
has
been
calculated
using
the
average
daily
shares
method.
(b)
Not
annualized
for
periods
less
than
one
year.
(c)
Assumes
reinvestment
of
all
net
investment
income
and
realized
capital
gain
distributions,
if
any,
during
the
period.
Includes
adjustments
in
accordance
with
U.S.
Generally
Accepted
Accounting
Principles
and
could
differ
from
the
reported
return.
(d)
Annualized
for
periods
less
than
one
year.
(e)
Does
not
include
acquired
fund
fees
and
expenses,
if
any.
(f)
Portfolio
turnover
is
calculated
on
the
basis
of
the
Fund
as
a
whole
without
distinguishing
between
the
classes
of
shares.
9
Victory
Variable
Insurance
Funds
II
For
a
Share
Outstanding
Throughout
Each
Period
Financial
Highlights
—
continued
See
notes
to
financial
statements.
NOTE:
The
above
financial
highlights
do
not
reflect
the
deduction
of
non-fund
expenses
associated
with
variable
insurance
products,
such
as
mortality
and
expense
risk
charges,
separate
account
charges,
and
sales
charges.
Victory
Pioneer
Equity
Income
VCT
Portfolio
Class
II*
Six
Months
Ended
June
30,
2026
(Unaudited)
Year
Ended
December
31,
2025
Year
Ended
December
31,
2024
Year
Ended
December
31,
2023
Year
Ended
December
31,
2022
Year
Ended
December
31,
2021
Net
Asset
Value,
Beginning
of
Period
$12.37
$13.32
$15.08
$15.45
$19.55
$15.79
Investment
Activities:
Net
investment
income
(loss)(a)
0.13
0.25
0.28
0.24
0.24
0.24
Net
realized
and
unrealized
gains
(losses)
0.98
1.05
1.14
0.81
(1.98)
3.74
Total
from
Investment
Activities
1.11
1.30
1.42
1.05
(1.74)
3.98
Distributions
to
Shareholders
from:
Net
investment
income
(0.15)
(0.26)
(0.28)
(0.25)
(0.26)
(0.22)
Net
realized
gains
—
(1.99)
(2.90)
(1.17)
(2.10)
—
Total
Distributions
(0.15)
(2.25)
(3.18)
(1.42)
(2.36)
(0.22)
Net
Asset
Value,
End
of
Period
$13.33
$12.37
$13.32
$15.08
$15.45
$19.55
Total
Return(b)(c)
9.00%
11.14%
10.97%
7.17%
(7.94)%
25.33%
Ratios
to
Average
Net
Assets:
Net
Expenses(d)(e)
1.04%
1.03%
1.04%
1.08%
1.03%
1.05%
Net
Investment
Income
(Loss)(d)
1.96%
1.97%
2.00%
1.61%
1.45%
1.35%
Gross
Expenses(d)(e)
1.04%
1.03%
1.04%
1.08%
1.03%
1.05%
Supplemental
Data:
Net
Assets
at
end
of
period
(000's)
$22,972
$22,724
$23,635
$25,057
$27,141
$34,258
Portfolio
Turnover(b)(f)
22%
38%
68%
81%
36%
28%
*
Pioneer
Equity
Income
VCT
Portfolio
(the
“Predecessor
Fund”)
reorganized
with
the
Fund
effective
April
1,
2025
(the
“Reorganization”).
The
Predecessor
Fund
is
the
accounting
survivor
of
the
Reorganization
and
shareholders
holding
Class
I
and
Class
II
shares
of
the
Predecessor
Fund
received
Class
I
and
Class
II
shares
of
the
Fund,
respectively.
(a)
Per
share
net
investment
income
(loss)
has
been
calculated
using
the
average
daily
shares
method.
(b)
Not
annualized
for
periods
less
than
one
year.
(c)
Assumes
reinvestment
of
all
net
investment
income
and
realized
capital
gain
distributions,
if
any,
during
the
period.
Includes
adjustments
in
accordance
with
U.S.
Generally
Accepted
Accounting
Principles
and
could
differ
from
the
reported
return.
(d)
Annualized
for
periods
less
than
one
year.
(e)
Does
not
include
acquired
fund
fees
and
expenses,
if
any.
(f)
Portfolio
turnover
is
calculated
on
the
basis
of
the
Fund
as
a
whole
without
distinguishing
between
the
classes
of
shares.
Notes
to
Financial
Statements
June
30,
2026
Victory
Variable
Insurance
Funds
II
10
(Unaudited)
1.
Organization:
Victory
Variable
Insurance Funds
II
(the
“Trust”)
is
organized
as
a
Delaware
statutory
trust
and
is
registered
under
the Investment
Company
Act
of
1940,
as
amended
(the
“1940
Act”),
as
an
open-end
investment
company.
The
Trust
is
comprised
of seven funds
and
is
authorized
to
issue
an
unlimited
number
of
shares,
which
are
units
of
beneficial
interest
with a
par
value
of
$0.001
per
share.
The
Fund's
shares
are
only
available
for
purchase
by
insurance
companies
for
funding
variable
annuity
and
variable
life
insurance
contracts
or
by
qualified
pension
and
retirement
plans.
The
accompanying
financial
statements
are
those
of
the
following
fund
(the
"Fund").
The
fund
is
classified
as
diversified
under
the
1940
Act.
Each
class
of
shares
of the
Fund
has
substantially
identical
rights
and
privileges
except
with
respect
to
fees
paid
under
distribution
plans,
expenses
allocable
exclusively
to
each
class
of
shares,
voting
rights
on
matters
solely
affecting
a
single
class
of
shares,
and
the
exchange
privilege
of
each
class
of
shares.
 Victory
Capital
Management
Inc.
(“VCM”
or
the
“Adviser”)
is
an
indirect
wholly
owned
subsidiary
of
Victory
Capital
Holdings,
Inc.,
a
publicly
traded
Delaware
corporation,
and
a
wholly
owned
direct
subsidiary
of
Victory
Capital
Operating,
LLC.
Under
the
Trust’s
organizational
documents,
its
officers
and
trustees
are
indemnified
against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Fund.
In
addition,
in
the
normal
course
of
business,
the
Fund
enters
into
contracts
with
its
vendors
and
others
that
provide
for
general
indemnifications.
The
Fund’s
maximum
exposure
under
these
arrangements
is
unknown,
as
this
would
involve
future
claims
that
may
be
made
against
the
Fund.
However,
based
on
experience,
the
Fund
expects
that
risk
of
loss
to
be
remote.
The Fund,
which
commenced
operations
on
April
1,
2025,
is
the
successor
to
the
Pioneer Equity
Income VCT
Portfolio
(the
“Predecessor
Fund”).
The
Predecessor Fund
transferred
all
of
the
net
assets
of
Class
I
and Class
II
shares
in
exchange
for
the
Fund’s
Class
I
and
Class II
shares,
respectively,
on
April
1,
2025
pursuant
to
an
agreement
and
plan
of
reorganization
(the
“Reorganization”)
which
was
approved
by
the
shareholders
of
the
Predecessor Fund
on
March
27,
2025.
The
Reorganization
was
structured
so
that
the
transfer
of
assets
and
liabilities
did
not
result
in
federal
tax
liability
to
the
Predecessor
Fund or
its
shareholders.
Shareholders
holding
Class
I
and
Class
II shares
of
the
Predecessor Fund
received
Class
I
and
Class II
shares
of
the
Fund,
respectively,
in
the
Reorganization.
The
Predecessor Fund
was
the
accounting
survivor
of
the
Reorganization.
Accordingly,
the
Predecessor
Fund’s
performance
and
financial
history
have
become
the
performance
and
financial
history
of
the
Fund.
The
Fund’s
investment
objective
is
to
seek
current
income
and
long-term
growth
of
capital
from
a portfolio
consisting
primarily
of
income
producing
equity
securities
of
U.S.
corporations.
Effective
April
1,
2025, VCM
serves
as
the
Fund’s
investment
adviser,
succeeding
Amundi
Asset
Management
US,
Inc.
(“Amundi
US”).
On
the
same
date,
Victory
Capital
Services,
Inc.
(the
“Distributor”),
an
affiliate
of
the
Adviser,
became
the
Distributor
for
the
Fund's
shares,
succeeding
Amundi
Distributor
US,
Inc.
The
Distributor
receives
no
fee
or
other
compensation
for
these
services
(See
Note
4).
On
September
30,
2025,
the
Trust’s
Board
of
Trustees
(the
“Board”),
upon
the
recommendation
of
the
Adviser,
approved
a
change
in
the
Fund's
custodian,
sub-administrator,
sub-fund
accountant,
and
transfer
agent.
Effective
as
of
February
9,
2026, Citibank,
N.A.
serves
as
the
custodian
of
the
Fund,
Citi
Fund
Services
Ohio,
Inc.
serves
as
sub-administrator
and
sub-fund
accountant
of
the
Fund
and
FIS
Investor
Services
LLC
serves
as
transfer
agent
of
the
Fund.
2.
Significant
Accounting
Policies:
The
following
is
a
summary
of
significant
accounting
policies
followed
by
the Fund
in
the
preparation
of
its
financial
statements.
The
policies
are
in
conformity
with
U.S.
Generally
Accepted
Accounting
Principles
(“GAAP”).
The
preparation
of
financial
statements
in
accordance
with
GAAP
requires
the
Adviser
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
and
disclosure
of
contingent
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
reported
amounts
of
income
and
expenses
for
the
period.
Actual
results
could
differ
from
those
estimates.
The
Fund
follows
the
specialized
accounting
and
reporting
requirements
under
GAAP
that
are
applicable
to
investment
companies
under
Accounting
Standards
Codification
Topic 946.
Investment
Valuation: 
The
Fund
records
investments
at
fair
value.
Fair
value
is
defined
as
the
price
that
would
be
received
to sell
an asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
at
the
measurement
date.
The
valuation
techniques
described
below
maximize
the
use
of
observable
inputs
and
minimize
the
use
of
unobservable
inputs
in
determining
fair
value.
The
inputs
used
for
valuing
the
Fund’s
investments
are
summarized
in
the
three
broad
levels
listed
below:
Level
1
—
quoted
prices
(unadjusted)
in
active
markets
for
identical
securities
Level
2
—
other
significant
observable
inputs
(including
quoted
prices
for
similar
securities,
interest
rates,
or
credit
spreads,
applicable
to
those
securities,
etc.)
Level
3
—
significant
unobservable
inputs
(including
the
Adviser’s
assumptions
in
determining
the
fair
value
of
investments)
Changes
in
valuation
techniques
may
result
in
transfers
in
or
out
of
an
assigned
level
within
the
disclosure
hierarchy.
The
inputs
or
methodologies
used
for
valuation
techniques
are
not
necessarily
an
indication
of
the
risks
associated
with
entering
into
those
investments.
Fund
(Legal
Name)
Fund
(Short
Name)
Investment
Share
Classes
Offered
Victory
Pioneer
Equity
Income
VCT
Portfolio
Equity
Income
VCT
Portfolio
Class
I
and
Class
II
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
11
(Unaudited)
The Adviser,
appointed
as
the
valuation
designee
by the
Trust's
Board
of
Trustees
(the
“Board”), has
established
the
Pricing
Committee
(the
“Committee”),
and
subject
to
Board
oversight,
the
Committee
administers
and
oversees
the
Fund’s
valuation
policies
and
procedures,
which
are
approved
by
the
Board.
Portfolio
securities
listed
or
traded
on
securities
exchanges,
including
Exchange-Traded
Funds
(“ETFs”)
and
American
Depositary
Receipts,
are
valued
at
the
last
sale
price
on
the
exchange
or
system
where
the
security
is
principally
traded,
if
available,
or
at
the
Nasdaq
Official
Closing
Price.
If
there
have
been
no
sales
for
that
day
on
the
exchange
or
system,
then
a
security
is
valued
at
the
closing mean
if
available,
otherwise
the
bid
quotation
on
the
exchange
or
system
where
the
security
is
principally
traded.
In
each
of
these
situations,
valuations
are
typically
categorized
as
Level
1
in
the
fair
value
hierarchy.
Investments
in
open-end
investment
companies,
other
than
ETFs, are
valued
at their
net
asset
value
(“NAV”).
These
valuations
are
typically
categorized
as
Level
1 in
the
fair
value
hierarchy.
In
the
event
that
price
quotations
or
valuations
are
not
readily
available,
investments
are
valued
at
fair
value
in
accordance
with
procedures
established
by
and
under
the
general
supervision
and
responsibility
of
the
Board.
These
valuations
are
typically
categorized
as
Level
2
or
Level
3
in
the
fair
value
hierarchy,
based
on
the
observability
of
inputs
used
to
determine
the
fair
value.
The
effect
of
fair
value
pricing
is
that
securities
may
not
be
priced
on
the
basis
of
quotations
from
the
primary
market
in
which
they
are
traded
and
the
actual
price
realized
from
the
sale
of
a
security
may
differ
materially
from
the
fair
value
price.
Valuing
these
securities
at
fair
value
is
intended
to
cause
the
Fund’s
net
asset
value to
be
more
reliable
than
it
otherwise
would
be.
The
principal
exchanges
and
markets
for
non-U.S.
equity
securities
have
closing
times
prior
to
the
close
of
the
New
York
Stock
Exchange.
However,
the
value
of
these
securities
may
be
influenced
by
changes
in
global
markets
occurring
after
the
closing
times
of
the
local
exchanges
and
markets
up
to
the
time
the
Fund
determines
its
net
asset
value.
Consequently,
the
Fund
uses
a
fair
value
model
developed
by
an
independent
pricing
service
to
value
non-U.S.
equity
securities.
On
a
daily
basis,
the
pricing
service
recommends
changes,
based
on
a
proprietary
model,
to
the
closing
market
prices
of
each
non-U.S.
security
held
by
the
Fund
to
reflect
the
security’s
fair
value
at
the
time
the
Fund
determines
its
net
asset
value.
These
recommendations
are
applied
in
accordance
with
the
Adviser’s
(the
valuation
designee’s)
valuation
procedures.
These
valuations
are
typically
categorized
as
Level
2
in
the
fair
value
hierarchy.
A
summary
of
the
valuations
as
of
June
30,
2026, based
upon
the
three
levels
defined
above,
is
included
in
the
table
below
while
the
breakdown,
by
category,
of
investments
is
disclosed
on
the
Schedule
of
Portfolio
Investments
(amounts
in
thousands):
As
of June
30,
2026,
there
were
no
significant transfers
into/out
of
Level
3.
Real
Estate
Investment
Trusts
(“REITs”):
The
Fund
may
invest
in
REITs,
which
report
information
on
the
source
of
their
distributions
annually.
REITs
are
pooled
investment
vehicles
that
invest
primarily
in
income-producing
real
estate
or
real
estate
related
loans
or
interests
(such
as
mortgages).
Certain
distributions
received
from
REITs
will
be
reclassified
to
realized
gains
or
return
of
capital
as
estimated
by
the
Fund
based
on
calendar
year-end
information
as
it
becomes
known
or
available.
Investment
Companies:
Open-End
Funds:
The
Fund
may
invest
in
portfolios
of
open-end
investment
companies.
These
investment
companies
value
securities
in
their
portfolios
for
which
market
quotations
are
readily
available
at
their
market
values
(generally
the
last
reported
sale
price)
and
all
other
securities
and
assets
at
their
fair
value
by
the
methods
established
by
the
board
of
directors
of
the
underlying
funds.
Investment
Transactions
and
Related
Income:
Investment
transactions
are
recorded
on
trade
date.
For
financial
reporting
purposes,
however,
investment
transactions
are
accounted
for
on
trade
date
or
the
last
business
day
of
the
reporting
period.
 Dividend
income
is
recorded
on
the
ex-dividend
date.
Non-cash
dividends
included
in
income,
if
any,
are
recorded
at
the
fair
value
of
the
securities
received.
Gains
or
losses
realized
on
sales
of
securities
are
recorded
on
the
identified
cost
basis. Interest
income
is
accrued
daily
and
recorded
using
the
effective
interest
method,
which
includes
the
amortization
of
premiums
and
accretion
of
discounts
on
debt
securities.
Withholding
taxes
on
foreign
dividends,
interest,
and
capital
gains
have
been
provided
for
in
accordance
with
the
applicable
tax
rules
and
rates
of
each
respective
country.
Foreign
Currency
Translations:
The
accounting
records
of
the
Fund
are
maintained
in
U.S.
dollars.
Investment
securities
and
other
assets
and
liabilities
of the
Fund
denominated
in
a
foreign
currency
are
translated
into
U.S.
dollars
at
current
exchange
rates.
Purchases
and
sales
of
securities,
income
receipts,
and
expense
Level
1
Level
2
Level
3
Total
Equity
Income
VCT
Portfolio
Common
Stocks
...............................................
$
72,309
$
—
$
—
$
72,309
Total
.......................................................
$
72,309
$
—
$
—
$
72,309
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
12
(Unaudited)
payments
are
translated
into
U.S.
dollars
at
the
exchange
rates
on
the
date
of
the
transactions.
The
Fund
does
not
isolate
the
portion
of
the
results
of
operations
resulting
from
changes
in
foreign
exchange
rates
on
investments
from
fluctuations
arising
from
changes
in
market
prices
of
securities
held.
Such
fluctuations,
if
any,
are
disclosed
as
Net
change
in
unrealized
appreciation/depreciation
on investment
securities
and
foreign
currency
translations
on
the
Statement
of
Operations.
Realized
gains
or
losses
from
these
fluctuations,
if
any,
are
disclosed
as
Net
realized
gains
(losses)
from
investment
securities
and
foreign
currency
transactions
on
the
Statement
of
Operations.
Securities
Lending:
Effective
May
8,
2026,
the
Fund,
through
a
Securities
Lending
Agreement
with
Citibank,
N.A.
(“Citibank”),
may
lend
its
securities
to
qualified
financial
institutions,
such
as
certain
broker-dealers
and
banks,
to
earn
additional
income,
net
of
income
retained
by
Citibank.
Borrowers
are
required
to
initially
secure
their
loans
for
collateral
in
the
amount
of
at
least
102%
of
the
value
of
U.S.
securities
loaned
or
at
least
105%
of
the
value
of
non-U.S.
securities
loaned,
marked-to-market
daily.
Any
collateral
shortfalls
associated
with
increases
in
the
valuation
of
the
securities
loaned
are
generally
cured
the
next
business
day.
The
collateral
can
be
received
in
the
form
of
cash
collateral
and/or
non-cash
collateral.
Non-
cash
collateral
can
include
U.S.
Government
Securities
and
other
securities
as
permitted
by Securities
and
Exchange
Commission
(“SEC”)
guidelines.
The
cash
collateral
is
invested
in
short-term
instruments
or
cash
equivalents,
primarily
open-end
investment
companies,
as
noted
on
the
Fund’s
Schedule
of
Portfolio
Investments.
The
Fund
effectively
does
not
have
control
of
the
non-cash
collateral
and
therefore
it
is
not
disclosed
on
the
Fund’s
Schedule
of
Portfolio
Investments.
Collateral
requirements
are
determined
daily
based
on
the
value
of
the
Fund’s
securities
on
loan
as
of
the
end
of
the
prior
business
day.
During
the
time
portfolio
securities
are
on
loan,
the
borrower
will
pay
the
Fund
any
dividends
or
interest
paid
on
such
securities
plus
any
fee
negotiated
between
the
parties
to
the
lending
agreement.
The
Fund
also
earns
a
return
from
the
collateral.
The
Fund
pays
Citibank
various
fees
in
connection
with
the
investment
of
cash
collateral
and
fees
based
on
the
investment
income
received
from
securities
lending
activities.
Securities
lending
income
(net
of
these
fees)
is
disclosed
on
the
Statement
of
Operations.
Loans
are
terminable
upon
demand
and
the
borrower
must
return
the
loaned
securities
within
the
lesser
of
one
standard
settlement
period
or
five
business
days.
Although
risk
is
mitigated
by
the
collateral,
the
Fund
could
experience
a
delay
in
recovering
its
securities
and
possible
loss
of
income
or
value
if
the
borrower
fails
to
return
them.
In
addition,
there
is
a
risk
that
the
value
of
the
short-term
investments
will
be
less
than
the
amount
of
cash
collateral
required
to
be
returned
to
the
borrower.
The
Fund’s
agreement
with
Citibank
does
not
include
master
netting
provisions.
Non-cash
collateral
received
by
the
Fund
may
not
be
sold
or
repledged,
except
to
satisfy
borrower
default.
As
of
June
30,
2026,
the
Fund
did
not
have
any
securities
on
loan.
Federal
Income
Taxes:
The
Fund
intends
to
continue
to
qualify
as
a
regulated
investment
company
by
complying
with
the
provisions
available
to
certain
investment
companies,
as
defined
in
applicable
sections
of
the
Internal
Revenue
Code,
and
to
make
distributions
of
net
investment
income
and
net
realized
gains
sufficient
to
relieve
it
from
all,
or
substantially
all,
federal
income
taxes.
Accordingly,
no
provision
for
federal
income
taxes
is
required
in
the
financial
statements.
The
Fund
has
a
tax
year
end
of December
31.
For
the
six
months
ended
June
30,
2026,
the
Fund
did
not
incur
any
income
tax,
interest,
or
penalties,
and
has
recorded
no
liability
for
net
unrecognized
tax
benefits
relating
to
uncertain
tax
positions.
Management
of
the
Fund
has
reviewed
tax
positions
taken
in
tax
years
that
remain
subject
to
examination
by
all
major
tax
jurisdictions,
including
federal
(i.e.,
the
last
four
tax
years,
which
includes
the
current
fiscal
tax
year
end).
Management
believes
that
there
is
no
tax
liability
resulting
from
unrecognized
tax
benefits
related
to
uncertain
tax
positions
taken.
Allocations:
Expenses
directly
attributable
to the
Fund
are
charged
to the
Fund,
while
expenses
that
are
attributable
to
more
than
one
fund
in
the
Trust,
or
jointly
with
an
affiliated
trust,
are
allocated
among
the
respective
funds
in
the
Trust
and/or
an
affiliated
trust
based
upon
net
assets
or
another
appropriate
basis.
Income,
expenses
(other
than
class-specific
expenses
such
as
transfer
agent
fees,
state
registration
fees,
printing
fees,
and
12b-1
fees),
and
realized
and
unrealized
gains
or
losses
on
investments
are
allocated
to
each
class
of
shares
based
on
its
relative
net
assets
on
the
date
income
is
earned
or
expenses
and
realized
and
unrealized
gains
and
losses
are
incurred.
Fees
Paid
Indirectly:
Expense
offsets
to
custody
fees
that
arise
from
credits
on
cash
balances
maintained
on
deposit
are
reflected
on
the
Statement
of
Operations,
as
applicable,
as
Fees
paid
indirectly.
3.
Purchases
and
Sales:
Purchases
and
sales
of
securities
(excluding
securities
maturing
less
than
one
year
from
acquisition)
and
purchases
and
sales
associated
with
in-
kind
transactions
for
the
six
months
ended
June
30,
2026,
are
included
in
the
table
below
(amounts
in
thousands).
Any
realized
gains
or
losses
from
in-kind
redemptions
are
reflected
on
the
Statement
of
Operations
as
net
realized
gains
(losses)
from
in-kind
redemptions.
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
13
(Unaudited)
4.
Fees
and
Transactions
with
Affiliates
and
Related
Parties:
Investment
Advisory
Fees: 
Investment
advisory
services
are
provided
to
the
Fund
by
the
Adviser,
which
is
a
New
York
corporation
registered
as
an
investment
adviser
with
the
SEC.
Under
the
terms
of
the
Investment
Advisory
Agreement,
the
Adviser
is
entitled
to
receive
fees
accrued
daily
and
paid
monthly
at
an
annualized
rate
based
on
a
percentage
of
the
average
daily
net
assets
of the
Fund. The
rates
at
which
the
Adviser
is
paid
by the
Fund
are
included
in
the
table
below.
Amounts
incurred
and
paid
to
VCM
for
the
six
months ended
June
30,
2026,
are
reflected
on
the
Statement
of
Operations
as
Investment
advisory
fees.
Administration
and
Servicing
Fees:
VCM
also
serves
as
the
Fund’s
administrator
and
fund
accountant.
Under
the Administration
and
Fund
Accounting
Agreement,
VCM
is
paid
an
administration
fee
based
on
a
percentage
of
the
average
daily
net
assets
of
all
Companies
and
Funds
(as
defined
in
the
Administration
and
Fund
Accounting
Agreement)
together
with
all
other
registered
investment
companies
for
which
VCM
acts
as
administrator,
and allocated
to the
Fund
on
a
pro
rata
basis
calculated
based
on
the
Fund’s
average
daily
net
assets.
The
tiered
rates
at
which
VCM
is
paid
by
the
Fund
are
shown
in
the
table
below:
Amounts
incurred
for
the
six
months
ended
June
30,
2026,
are
reflected
on
the
Statement
of
Operations
as
Administration
fees.
Effective
February
9,
2026,
Citi
Fund
Services
Ohio,
Inc.
(“Citi”),
an
affiliate
of
Citibank,
acts
as
sub-administrator
and
sub-fund
accountant
to
the
Fund
pursuant
to
a
Sub-Administration
and
Sub-Fund
Accounting
Services
Agreement
between
VCM
and
Citi.
VCM
pays
Citi
a
fee
for
providing
these
services.
The
Fund
reimburses
VCM
and
Citi
for
out-of-pocket
expenses
incurred
in
providing
these
services,
including
costs
associated
with
the
Chief
Compliance
Officer,
and
implementing
new
reports
required
by
new
rules
adopted
by
the
SEC
under
the
1940
Act.
Prior
to
February
9,
2026,
BNY
Mellon
served
as
sub-administrator
and
sub-fund
accountant
for
the
Fund.
The
total
amounts
incurred
and
paid
for the six
months
ended June
30,
2026,
are
reflected
within
the
Sub-Administration
fees
on
the
Statement
of
Operations.
Transfer
Agency
Fees:
Effective February
9,
2026,
FIS
Investor
Services
LLC
serves
as
the
Fund’s
transfer
agent.
Under
the
Transfer
Agent
Agreement,
the
Trust
pays
FIS
a
fee
for
its
services
and
reimburses
FIS
for
all
of its
reasonable
out-of-pocket
expenses
incurred
in
providing
these
services.
Prior
to February
9,
2026,
BNY
Mellon
Investment
Servicing
(US)
Inc.
served
as
the
transfer
agent
to
the
Fund at
negotiated
rates
where
transfer
agent
fees
included
sub-transfer
agent
expenses
incurred
through
the
Fund’s
omnibus
relationship
contracts.
In
addition,
the
Fund
would
reimburse
out-of-pocket
expenses
incurred
by
the
former
transfer
agent
related
to
shareholder
communications
activities
such
as
proxy
and
statement
mailings,
and
outgoing
phone
calls.
Total
transfer
agent
fees
incurred
for
the
six
months ended
June
30,
2026,
are
reflected
on
the
Statement
of
Operations
as
Transfer
agent
fees.
Sub-Transfer
Agency
Fees:
Effective
February
9,
2026,
the
Fund
has
entered
into
Sub-Transfer
Agency
Agreements
with
financial
intermediaries
that
provide
recordkeeping,
processing,
shareholder
communications
and
other
services
to
customers
of
the
intermediaries
that
hold
positions
in
the
Fund
and
have
agreed
to
compensate
the
intermediaries
for
providing
those
services.
Intermediaries
transact
with
the
Fund
primarily
through
the
use
of
omnibus
accounts
on
behalf
of
their
customers
who
hold
positions
in
the
Fund.
These
services
would
have
been
provided
by
the
Fund’s
transfer
agent
and
other
service
providers
if
the
shareholders'
accounts
were
maintained
directly
at
the
Fund’s
transfer
agent.
Prior
to
February
9,
2026,
BNY
Mellon
served
as
sub-transfer
agent.
Total
sub-transfer
agent
fees
incurred
for
the six
months
ended
June
30,
2026,
are
reflected
on
the
Statement
of
Operations
as
Sub-Transfer
agent
fees.
Excluding
U.S.
Government
Securities
Purchases
Sales
Equity
Income
VCT
Portfolio
.................................................................
$
15,974
$
21,873
Adviser
Fee
Tier
Rates
Up
to
$1
billion
Over
$1
billion
Equity
Income
VCT
Portfolio
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
0.65%,
plus
0.60%
Annual
Charge
Up
to
$15
billion
Over
$15
billion
-
$30
billion
Over
$30
billion
-
$85
billion
Over
$85
billion
Equity
Income
VCT
Portfolio
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
0.08%,
plus
0.05%,
plus
0.04%,
plus
0.03%
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
14
(Unaudited)
Distributor/Underwriting
Services:
Victory
Capital
Services, Inc.
(the
“Distributor”),
an
affiliate
of
the
Adviser,
serves
as
Distributor
for
the
continuous
offering
of
the
shares
of
the
Fund
pursuant
to
a
Distribution
Agreement
between
the
Distributor
and
the
Trust.
Pursuant
to
the
Distribution
and
Service
Plans
adopted
in
accordance
with
Rule
12b-1
under
the
1940
Act,
the
Distributor
may
receive
a
monthly
distribution
and
service
fee,
at
an
annual
rate
of
up
to
0.25%
of
the
average
daily
net
assets
of
Class
II.
The
distribution
and
service
fees
paid
to
the
Distributor
may
be
used
by
the
Distributor
to
pay
for
activity
primarily
intended
to
result
in
the
sale
of
Class
II.
Amounts
incurred
and
paid
to
the
Distributor
for
the
six
months
ended
June
30,
2026, are
reflected
on
the
Statement
of
Operations
as
12b-1
fees.
Other
Fees:
Effective
February
9,
2026,
Citibank
serves
as
the
Fund's
custodian.
The
Fund
pays
Citibank
a
fee
for
providing
these
services.
Prior
to
February
9,
2026,
BNY
Mellon
served
as
the
Fund's
custodian. Total
custodian
fees
incurred
for
the
period ended
June
30,
2026, are
reflected
on
the
Statement
of
Operations
as
Custodian
fees.
Sidley
Austin
LLP
provides
legal
services
to
the
Trust.
The
Adviser
has
entered
into
an
expense
limitation
agreement
with the Fund.
Under
the
terms
of
the
agreement,
the
Adviser
has
agreed
to
waive
fees
or
reimburse
certain
expenses
to
the
extent
that
ordinary
operating
expenses
incurred
by
certain
classes
of
the
Fund
in
any
fiscal
year
exceed
the
expense limits
for
such
classes
of the
Fund.
Such
excess
amounts
will
be
the
liability
of
the
Adviser. Acquired
fund
fees
and
expenses,
interest,
taxes,
brokerage
commissions,
other
expenditures which
are
capitalized
in
accordance
with
GAAP,
and
other
extraordinary
expenses
not
incurred
in
the
ordinary
course
of the
Fund’s
business
are
excluded
from
the
expense
limits.
As
of
June
30,
2026,
the
expense
limits
(excluding
voluntary
waivers) were
as
follows:
Under
the
terms
of
the
expense
limitation
agreement,
the
Fund
has
agreed
to
repay
fees
and
expenses
that
were
waived
or
reimbursed
by
the
Adviser
for
a
period
of
up
to two
years
(twenty-four
(24)
months)
after
the
waiver
or
reimbursement
took
place,
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
Fund
has
not
recorded
any
amounts
available
to
be
repaid
to
the
Adviser
as
a
commitment
and
contingency
liability
due
to
an
assessment
that
such
repayments
are
not
probable
at
June
30,
2026.
The
dates
in
the
table
below
represent
the
fiscal
year-end
in
which
the
24-month
recoupment
period
expires.
As
of
June
30,
2026,
these
amounts
are
available
to
be
repaid
to
the
Adviser
(amounts
in
thousands):
The
Adviser
may
voluntarily
waive
or
reimburse
additional
fees
and
expenses
or
make
other
payments to
assist
the
Fund
in
maintaining
competitive
expense
ratios.
Except
as
noted
above,
voluntary
waivers
and
reimbursements
applicable
to
the
Fund are
not
available
to
be
recouped
at
a
future
time.
There
were
no
voluntary
waivers
or
reimbursements
for
the six
months
ended
June
30,
2026.
Certain
officers
and/or
interested
trustees
of
the
Fund
are
also
officers
and/or
employees
of
the
Adviser,
administrator,
fund
accountant,
legal
counsel,
and
Distributor.
5.
Risks:
The
following
describes
principal
risks
that
you
may
assume
as
an
investor
in
the
Fund.
The
Fund’s
prospectus
contains
unaudited
information
regarding
the
Fund’s
principal
risks.
Please
refer
to
that
document
when
considering
the
Fund’s
principal
risks.
The
Fund
may
be
subject
to
other
risks
in
addition
to
these
identified
risks.
Market
Risk
—
The
market
prices
of
securities
or
other
assets
held
by
the
Fund
may
go
up
or
down,
sometimes
rapidly
or
unpredictably,
due
to
general
market
conditions,
such
as
real
or
perceived
adverse
economic,
political,
or
regulatory
conditions,
political
instability,
recessions,
inflation,
changes
in
interest
or
currency
rates,
lack
of
liquidity
in
the
markets,
the
spread
of
infectious
illness
or
other
public
health
issues,
weather
or
climate
events,
armed
conflict,
market
disruptions
caused
by
tariffs,
trade
disputes,
sanctions
or
other
government
actions,
or
other
factors
or
adverse
investor
sentiment.
If
the
market
prices
of
the
Fund’s
securities
and
assets
fall,
the
value
of
your
investment
will
go
down.
A
change
in
financial
condition
or
other
event
affecting
a
single
issuer
or
market
may
adversely
impact
securities
markets
as
a
whole.
Equity
Securities Risk
—
Equity
securities
are
subject
to
the
risk
that
stock
prices
may
rise
and
fall
in
periodic
cycles
and
may
perform
poorly
relative
to
other
investments.
This
risk
may
be
greater
in
the
short
term.
Equity
securities
represent
an
ownership
interest
in
an
issuer,
rank
junior
in
a
company’s
capital
structure
to
debt
securities
and
consequently
may
entail
greater
risk
of
loss
than
debt
securities.
Equity
securities
have
the
lowest
priority,
and
the
greatest
risk,
with
respect
to
dividends
and
any
liquidation
payments
in
the
event
of
an
issuer’s
bankruptcy.
In
effect
until
April
1,
2028
Class
I
Class
II
Equity
Income
VCT
Portfolio
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
0.79%
1.04%
December
31,
2028
Total
Equity
Income
VCT
Portfolio
....................................................................
$
2
$
2
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
15
(Unaudited)
Value
Style Risk
—
The
prices
of
securities
the
Adviser
believes
are
undervalued
may
not
appreciate
as
expected
or
may
go
down.
Value
stocks
may
fall
out
of
favor
with
investors
and
underperform
the
overall
equity
market.
A
value
stock
may
not
increase
in
price
as
anticipated
by
the
Adviser
if
other
investors
fail
to
recognize
the
company’s
value
and
bid
up
the
price
or
the
factors
that
the
Adviser
believes
will
increase
the
price
of
the
security
do
not
occur
or
do
not
have
the
anticipated
effect.
6.
Interfund
Lending:
The
Trust
and
the
Adviser
rely
on
an
exemptive
order
granted
by
the
SEC
in
March
2017
(the
“Order”),
permitting
the
establishment
and
operation
of
an
Interfund
Lending
Facility
(the
“Facility”).
The
Facility
allows
the
Fund
to
directly
lend
and
borrow
money
to
or
from
any
other
fund
in
the
Victory
Funds
Complex
that
is
permitted
to
participate
in
the
Facility,
relying
upon
the
Order
at
rates
beneficial
to
both
the
borrowing
and
lending
funds.
Advances
under
the
Facility
are
allowed
for
temporary
or
emergency
purposes,
including
the
meeting
of
redemption
requests
that
otherwise
might
require
the
untimely
disposition
of
securities,
and
are
subject
to
each
Fund’s
borrowing
restrictions.
The
interfund
loan
rate
is
determined,
as
specified
in
the
Order,
by
averaging
the
current
repurchase
agreement
rate
and
the
current
bank
loan
rate.
As
a
Borrower
(as
defined
in
the
Order),
interest
charged
to
the
Fund,
if
any,
during
the
period,
is
reflected
on
the
Statement
of
Operations
under
Interfund
lending
fees.
As
a
Lender
(as
defined
in
the
Order),
interest
earned
by
the
Fund,
if
any,
during
the
period,
is
reflected
on
the
Statement
of
Operations
under
Interfund
lending.
The
Fund
did
not
utilize
or
participate
in
the
Facility
during
the
six
months
ended
June
30,
2026.
7.
Federal
Income
Tax
Information:
The
Fund
intends
to
distribute
any
net
investment
income
quarterly.
Distributable
net
realized
gains,
if
any,
are
declared
and
paid
at
least
annually.
The
amounts
of
dividends
from
net
investment
income
and
distributions
from
net
realized
gains
(collectively,
distributions
to
shareholders)
are
determined
in
accordance
with
federal
income
tax
regulations,
which
may
differ
from
GAAP.
To
the
extent
these
“book/tax”
differences
are
permanent
in
nature
(e.g.,
net
operating
loss
and
distribution
reclassification,
utilized
earnings
and
profit
distributions
to
shareholders
on
redemption
of
shares
as
part
of
the
dividends
paid
deduction
for
income
tax
purposes),
such
amounts
are
reclassified
within
the
components
of
net
assets
based
on
their
federal
tax-basis
treatment;
temporary
differences
(e.g.,
wash
sales)
do
not
require
reclassification.
To
the
extent
dividends
and
distributions
exceed
net
investment
income
and
net
realized
gains
for
tax
purposes,
they
are
reported
as
distributions
of
capital.
Net
investment
losses
incurred
by
the
Fund
may
be
reclassified
as
an
offset
to
capital
on
the
accompanying
Statement
of
Assets
and
Liabilities.
The
tax
character
of
current
year
distributions
paid
and
the
tax
basis
of
the
current
components
of
accumulated
earnings
(losses)
will
be
determined
at
the
end
of
the
current
tax
year.
As
of
the
tax
year
ended December
31,
2025,
the
Fund
had
net
capital
loss
carryforwards as shown
in
the
table
below.
It
is
unlikely
that
the
Board
will
authorize
a
distribution
of
capital
gains
realized
in
the
future
until
the
capital
loss
carryforwards
have
been
used
(amounts
in
thousands):
8.
Segment
Reporting:
The
Adviser’s
Management
Committee
acts
as
the
Fund’s
Chief
Operating
Decision
Maker
(“CODM”).
The
Fund
represents
a
single
operating
segment,
as
the
CODM
monitors
the
operating
results
of
the
Fund
as
a
whole
and
the
Fund’s
long-term
strategic
asset
allocation
is
predetermined
in
accordance
with
the
Fund's
single
investment
objective.
The
financial
information
in
the
form
of
the
Fund’s
portfolio
composition,
total
returns,
expense
ratios,
and
changes
in
net
assets,
which
are
used
by
the
CODM
to
assess
the
segment’s
performance
versus
the
Fund’s
comparative
benchmarks
and
to
make
resource
allocation
decisions
for
the
Fund’s
single
segment,
is
consistent
with
that
presented
within
the
Fund’s
financial
statements.
Segment
assets
are
reflected
on
the
accompanying
Statement
of
Assets
and
Liabilities
as
“total
assets”
and
significant
segment
expenses
are
listed
on
the
accompanying
Statement
of
Operations.
Short-Term
Amount
Total
Equity
Income
VCT
Portfolio
............................................................
$
(130)
$
(130)
Victory
Funds
P.O.
Box
182593
Columbus,
Ohio
43218-2593
Visit
our
website
at:
vcm.com
Call
Victory
at:
(800)
539-3863
19610-0826
June
30,
2026
Semi-Annual:
Full
Financials
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Fund
VCT
Portfolio
TABLE
OF
CONTENTS
Victory
Variable
Insurance
Funds
II
1
The
Fund
is
distributed
by
Victory
Capital
Services,
Inc.
Victory
Capital
Management
Inc.
is
the
investment
adviser
to
the
Fund
and
receives
fees
from
the
Fund
for
performing
services
for
the
Fund.
This
report
is
not
authorized
for
distribution
to
prospective
investors
unless
preceded
or
accompanied
by
a
current
prospectus
of
the
Fund.
For
additional
information
about
any
Victory
Fund,
including
fees,
expenses,
and
risks,
view
our
prospectus
online
at
vcm.com
or
call
800-539-3863.
Read
it
carefully
before
you
invest
or
send
money.
The
information
in
this
report
is
based
on
data
obtained
from
recognized
services
and
sources
and
is
believed
to
be
reliable.
Any
opinions,
projections,
or
recommendations
in
this
report
are
subject
to
change
without
notice
and
are
not
intended
as
individual
investment
advice.
Past
investment
performance
of
the
Fund,
markets
or
securities
mentioned
herein
should
not
be
considered
to
be
indicative
of
future
results
•
NOT
FDIC
INSURED
•
NO
BANK
GUARANTEE
•
MAY
LOSE
VALUE
Schedule
of
Portfolio
Investments
(Form
N-CSR
Item
6)
2
Financial
Statements
(Form
N-CSR
Item
7)
Statement
of
Assets
and
Liabilities
4
Statement
of
Operations
5
Statements
of
Changes
in
Net
Assets
6
Financial
Highlights
8
Notes
to
Financial
Statements
(Form
N-CSR
Item
7)
10
Schedule
of
Portfolio
Investments
June
30,
2026
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Fund
VCT
Portfolio
2
(Unaudited)
See
notes
to
financial
statements.
Security
Description
Shares
a
Value
(000)
Common
Stocks
(98.8%)
Communication
Services
(8.9%):
Alphabet,
Inc.
,
Class
A
...................................................
36,926
$
13,196
Meta
Platforms,
Inc.
,
Class
A
..............................................
6,758
3,807
17,003
Communications
Equipment
(1.0%):
Cisco
Systems,
Inc.
.....................................................
16,877
1,982
Consumer
Discretionary
(6.4%):
Amazon.com,
Inc.
(a)
....................................................
36,698
8,746
Tesla,
Inc.
(a)
..........................................................
8,212
3,454
12,200
Consumer
Staples
(2.4%):
BJ's
Wholesale
Club
Holdings,
Inc.
(a)
........................................
52,830
4,608
Electronic
Equipment,
Instruments
&
Components
(1.1%):
Corning,
Inc.
..........................................................
7,954
2,032
Energy
(4.0%):
Cameco
Corp.
.........................................................
11,997
1,222
Cheniere
Energy,
Inc.
....................................................
15,644
3,739
The
Williams
Cos.,
Inc.
..................................................
36,945
2,747
7,708
Financials
(6.4%):
CME
Group,
Inc.
,
Class
A
.................................................
4,966
1,097
State
Street
Corp.
.......................................................
19,357
3,283
The
Goldman
Sachs
Group,
Inc.
............................................
2,867
2,900
Truist
Financial
Corp.
....................................................
27,544
1,372
Visa,
Inc.
,
Class
A
......................................................
10,369
3,557
12,209
Health
Care
(7.9%):
Eli
Lilly
&
Co.
.........................................................
5,279
6,332
Labcorp
Holdings,
Inc.
...................................................
18,135
5,078
Vertex
Pharmaceuticals,
Inc.
(a)
.............................................
7,307
3,629
15,039
Industrials
(13.2%):
ABB
Ltd.
,
ADR
........................................................
16,553
1,799
EMCOR
Group,
Inc.
....................................................
2,796
2,320
GE
Vernova,
Inc.
.......................................................
3,303
3,881
MasTec,
Inc.
(a)
........................................................
6,663
2,772
Quanta
Services,
Inc.
....................................................
3,971
2,859
Regal
Rexnord
Corp.
....................................................
12,278
2,925
United
Parcel
Service,
Inc.
,
Class
B
..........................................
79,815
8,580
25,136
IT
Services
(0.7%):
Accenture
PLC
,
Class
A
..................................................
10,385
1,292
Materials
(7.2%):
Freeport-McMoRan,
Inc.
.................................................
106,229
6,681
Martin
Marietta
Materials,
Inc.
.............................................
12,196
7,033
13,714
Semiconductors
&
Semiconductor
Equipment
(19.8%):
Advanced
Micro
Devices,
Inc.
(a)
............................................
3,331
1,935
Applied
Materials,
Inc.
...................................................
5,964
4,312
Broadcom,
Inc.
........................................................
12,829
4,846
GLOBALFOUNDRIES,
Inc.
..............................................
23,356
1,925
KLA
Corp.
...........................................................
14,810
4,468
NVIDIA
Corp.
.........................................................
84,591
16,926
Rigetti
Computing,
Inc.
(a)
................................................
7,955
154
Taiwan
Semiconductor
Manufacturing
Co.
Ltd.
,
ADR
.............................
6,401
3,057
37,623
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Fund
VCT
Portfolio
3
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
June
30,
2026
See
notes
to
financial
statements.
Security
Description
Shares
a
Value
(000)
Software
(8.3%):
Microsoft
Corp.
........................................................
20,318
$
7,579
ServiceNow,
Inc.
(a)
.....................................................
27,128
2,694
Synopsys,
Inc.
(a)
.......................................................
8,618
3,844
Zscaler,
Inc.
(a)
.........................................................
11,471
1,619
15,736
Technology
Hardware,
Storage
&
Peripherals
(4.2%):
Apple,
Inc.
...........................................................
27,084
7,837
IonQ,
Inc.
(a)
..........................................................
3,466
185
8,022
Utilities
(7.3%):
Constellation
Energy
Corp.
................................................
19,765
4,909
Fervo
Energy
Co.
,
Class
A
(a)
..............................................
20,387
596
NRG
Energy,
Inc.
.......................................................
57,516
8,401
13,906
Total
Common
Stocks
(Cost
$112,835)
a
a
a
188,210
Total
Investments
(Cost
$112,835)
—
98.8%
188,210
Other
assets
in
excess
of
liabilities
—  1.2%
2,280
NET
ASSETS
-
100.00%
$
190,490
(a)
Non-income
producing
security.
ADR
—
American
Depositary
Receipt
PLC
—
Public
Limited
Company
Statement
of
Assets
and
Liabilities
June
30,
2026
4
See
notes
to
financial
statements.
Victory
Variable
Insurance
Funds
II
(Amounts
in
Thousands,
Except
Per
Share
Amounts)
(Unaudited)
Victory
Pioneer
Fund
VCT
Portfolio
Assets:
Investments,
at
value
(Cost
$112,835)
$
188,210
Cash
2,650
Receivables:
Dividends
and
interest
18
Capital
shares
issued
40
Investments
sold
423
Reclaims
29
Prepaid
expenses
1
Total
Assets
191,371
Liabilities:
Payables:
Investments
purchased
659
Capital
shares
redeemed
94
Accrued
expenses
and
other
payables:
Investment
advisory
fees
99
Administration
fees
7
Custodian
fees
1
12b-1
fees
6
Other
accrued
expenses
15
Total
Liabilities
881
Commitments
and
contingencies
(Note
4
)
Net
Assets:
Capital
107,943
Total
accumulated
earnings
(loss)
82,547
Net
Assets
$
190,490
Net
Assets:
Class
I
$
132,982
Class
II
57,508
Total
$
190,490
Shares
(unlimited
number
of
shares
authorized
with
a
par
value
of
$0.001
per
share):
Class
I
6,788
Class
II
2,892
Total
9,680
Net
asset
value,
offering
and
redemption
price
per
share:(a)
Class
I
$
19.59
Class
II
19.89
(a)
Per
share
amount
may
not
recalculate
due
to
rounding
of
net
assets
and/or
shares
outstanding.
Statement
of
Operations
For
the
Six
Months
Ended
June
30,
2026
5
See
notes
to
financial
statements.
Victory
Variable
Insurance
Funds
II
(Amounts
in
Thousands)
(Unaudited)
Victory
Pioneer
Fund
VCT
Portfolio
Investment
Income:
Dividends
$
994‌
Interest
19‌
Foreign
tax
withholding
(
4‌
)
Total
Income
1,009‌
Expenses:
Investment
advisory
fees
571‌
Administration
fees
38‌
Sub-Administration
fees
5‌
12b-1
fees
—
Class
II
57‌
Custodian
fees
2‌
Trustees'
fees
3‌
Legal
and
audit
fees
24‌
Other
expenses
8‌
Total
Expenses
708‌
Net
Investment
Income
(Loss)
301‌
Realized/Unrealized
Gains
(Losses)
from
Investments:
Net
realized
gains
(losses)
from
investment
securities
8,969‌
Net
change
in
unrealized
appreciation/depreciation
on
investment
securities
and
foreign
currency
translations
9,477‌
Net
realized/unrealized
gains
(losses)
on
investments
18,446‌
Change
in
net
assets
resulting
from
operations
$
18,747‌
6
(Amounts
in
Thousands)
Victory
Variable
Insurance
Funds
II
Statements
of
Changes
in
Net
Assets
See
notes
to
financial
statements.
Victory
Pioneer
Fund
VCT
Portfolio
Six
Months
Ended
June
30,
2026
(Unaudited)
Year
Ended
December
31,
2025*
From
Investment
Activities:
Operations:
Net
Investment
Income
(Loss)
$
301‌
$
538‌
Net
realized
gains
(losses)
8,969‌
18,666‌
Net
change
in
unrealized
appreciation/depreciation
9,477‌
12,985‌
Change
in
net
assets
resulting
from
operations
18,747‌
32,189‌
Distributions
to
Shareholders:
Class
I
(13,793‌)
(16,750‌)
Class
II
(5,724‌)
(4,334‌)
Change
in
net
assets
resulting
from
distributions
to
shareholders
(19,517‌)
(21,084‌)
Change
in
net
assets
resulting
from
capital
transactions
24,116‌
454‌
Change
in
net
assets
23,346‌
11,559‌
Net
Assets:
Beginning
of
period
167,144‌
155,585‌
End
of
period
$
190,490‌
$
167,144‌
*
Pioneer
Fund
VCT
Portfolio
(the
“Predecessor
Fund”)
reorganized
with
the
Fund
effective
April
1,
2025
(the
“Reorganization”).
The
Predecessor
Fund
is
the
accounting
survivor
of
the
Reorganization
and
shareholders
holding
Class
I
and
Class
II
shares
of
the
Predecessor
Fund
received
Class
I
and
Class
II
shares
of
the
Fund,
respectively.
7
(Amounts
in
Thousands)
Victory
Variable
Insurance
Funds
II
Statements
of
Changes
in
Net
Assets
(continued)
See
notes
to
financial
statements.
Victory
Pioneer
Fund
VCT
Portfolio
Six
Months
Ended
June
30,
2026
(Unaudited)
Year
Ended
December
31,
2025*
Capital
Transactions:
Class
I
Proceeds
from
shares
issued
$
2,211‌
$
4,227‌
Distributions
reinvested
13,793‌
16,750‌
Cost
of
shares
redeemed
(10,742‌)
(20,818‌)
Total
Class
I
$
5,262‌
$
159‌
Class
II
Proceeds
from
shares
issued
$
17,196‌
$
10,072‌
Distributions
reinvested
5,724‌
4,334‌
Cost
of
shares
redeemed
(4,066‌)
(14,111‌)
Total
Class
II
$
18,854‌
$
295‌
Change
in
net
assets
resulting
from
capital
transactions
$
24,116‌
$
454‌
Share
Transactions:
Class
I
Issued
108‌
225‌
Reinvested
708‌
1,004‌
Redeemed
(519‌)
(1,122‌)
Total
Class
I
297‌
107‌
Class
II
Issued
809‌
532‌
Reinvested
289‌
257‌
Redeemed
(194‌)
(767‌)
Total
Class
II
904‌
22‌
Change
in
Shares
1,201‌
129‌
*
Pioneer
Fund
VCT
Portfolio
(the
“Predecessor
Fund”)
reorganized
with
the
Fund
effective
April
1,
2025
(the
“Reorganization”).
The
Predecessor
Fund
is
the
accounting
survivor
of
the
Reorganization
and
shareholders
holding
Class
I
and
Class
II
shares
of
the
Predecessor
Fund
received
Class
I
and
Class
II
shares
of
the
Fund,
respectively.
Victory
Variable
Insurance
Funds
II
Financial
Highlights
For
a
Share
Outstanding
Throughout
Each
Period
8
See
notes
to
financial
statements.
NOTE:
The
above
financial
highlights
do
not
reflect
the
deduction
of
non-fund
expenses
associated
with
variable
insurance
products,
such
as
mortality
and
expense
risk
charges,
separate
account
charges,
and
sales
charges.
Victory
Pioneer
Fund
VCT
Portfolio
Class
I*
Six
Months
Ended
June
30,
2026
(Unaudited)
Year
Ended
December
31,
2025
Year
Ended
December
31,
2024
Year
Ended
December
31,
2023
Year
Ended
December
31,
2022
Year
Ended
December
31,
2021
Net
Asset
Value,
Beginning
of
Period
$19.65
$18.58
$16.01
$13.05
$19.80
$16.83
Investment
Activities:
Net
investment
income
(loss)(a)
0.04
0.08
0.13
0.12
0.10
0.05
Net
realized
and
unrealized
gains
(losses)
2.15
3.76
3.47
3.57
(4.02)
4.49
Total
from
Investment
Activities
2.19
3.84
3.60
3.69
(3.92)
4.54
Distributions
to
Shareholders
from:
Net
investment
income
(0.04)
(0.09)
(0.13)
(0.13)
(0.10)
(0.06)
Net
realized
gains
(2.21)
(2.68)
(0.90)
(0.60)
(2.73)
(1.51)
Total
Distributions
(2.25)
(2.77)
(1.03)
(0.73)
(2.83)
(1.57)
Net
Asset
Value,
End
of
Period
$19.59
$19.65
$18.58
$16.01
$13.05
$19.80
Total
Return(b)(c)
11.20%
23.35%
22.65%(d)
28.93%
(19.50)%
27.98%
Ratios
to
Average
Net
Assets:
Net
Expenses(e)(f)
0.74%
0.74%
0.75%
0.80%
0.76%
0.79%
Net
Investment
Income
(Loss)(e)
0.41%
0.41%
0.71%
0.85%
0.65%
0.28%
Gross
Expenses(e)(f)
0.74%
0.74%
0.75%
0.80%
0.76%
0.79%
Supplemental
Data:
Net
Assets
at
end
of
period
(000's)
$132,982
$127,533
$118,605
$106,496
$94,581
$133,162
Portfolio
Turnover(b)(g)
32%
85%
65%
64%
53%
87%
*
Pioneer
Fund
VCT
Portfolio
(the
“Predecessor
Fund”)
reorganized
with
the
Fund
effective
April
1,
2025
(the
“Reorganization”).
The
Predecessor
Fund
is
the
accounting
survivor
of
the
Reorganization
and
shareholders
holding
Class
I
and
Class
II
shares
of
the
Predecessor
Fund
received
Class
I
and
Class
II
shares
of
the
Fund,
respectively.
(a)
Per
share
net
investment
income
(loss)
has
been
calculated
using
the
average
daily
shares
method.
(b)
Not
annualized
for
periods
less
than
one
year.
(c)
Assumes
reinvestment
of
all
net
investment
income
and
realized
capital
gain
distributions,
if
any,
during
the
period.
Includes
adjustments
in
accordance
with
U.S.
Generally
Accepted
Accounting
Principles
and
could
differ
from
the
reported
return.
(d)
If
the
Fund
had
not
recognized
gains
in
settlement
of
class
action
lawsuits
during
the
year
ended
December
31,
2024,
the
total
return
would
have
been
22.59%.
(e)
Annualized
for
periods
less
than
one
year.
(f)
Does
not
include
acquired
fund
fees
and
expenses,
if
any.
(g)
Portfolio
turnover
is
calculated
on
the
basis
of
the
Fund
as
a
whole
without
distinguishing
between
the
classes
of
shares.
9
Victory
Variable
Insurance
Funds
II
For
a
Share
Outstanding
Throughout
Each
Period
Financial
Highlights
—
continued
See
notes
to
financial
statements.
NOTE:
The
above
financial
highlights
do
not
reflect
the
deduction
of
non-fund
expenses
associated
with
variable
insurance
products,
such
as
mortality
and
expense
risk
charges,
separate
account
charges,
and
sales
charges.
Victory
Pioneer
Fund
VCT
Portfolio
Class
II*
Six
Months
Ended
June
30,
2026
(Unaudited)
Year
Ended
December
31,
2025
Year
Ended
December
31,
2024
Year
Ended
December
31,
2023
Year
Ended
December
31,
2022
Year
Ended
December
31,
2021
Net
Asset
Value,
Beginning
of
Period
$19.92
$18.80
$16.19
$13.19
$19.97
$16.97
Investment
Activities:
Net
investment
income
(loss)(a)
0.02
0.03
0.09
0.08
0.06
0.01
Net
realized
and
unrealized
gains
(losses)
2.18
3.81
3.50
3.61
(4.05)
4.52
Total
from
Investment
Activities
2.20
3.84
3.59
3.69
(3.99)
4.53
Distributions
to
Shareholders
from:
Net
investment
income
(0.02)
(0.04)
(0.08)
(0.09)
(0.06)
(0.02)
Net
realized
gains
(2.21)
(2.68)
(0.90)
(0.60)
(2.73)
(1.51)
Total
Distributions
(2.23)
(2.72)
(0.98)
(0.69)
(2.79)
(1.53)
Net
Asset
Value,
End
of
Period
$19.89
$19.92
$18.80
$16.19
$13.19
$19.97
Total
Return(b)(c)
11.10%
23.07%
22.31%(d)
28.58%
(19.68)%
27.65%
Ratios
to
Average
Net
Assets:
Net
Expenses(e)(f)
0.99%
0.99%
1.00%
1.05%
1.01%
1.04%
Net
Investment
Income
(Loss)(e)
0.15%
0.15%
0.48%
0.59%
0.41%
0.03%
Gross
Expenses(e)(f)
0.99%
0.99%
1.00%
1.05%
1.01%
1.04%
Supplemental
Data:
Net
Assets
at
end
of
period
(000's)
$57,508
$39,611
$36,980
$21,017
$20,657
$25,816
Portfolio
Turnover(b)(g)
32%
85%
65%
64%
53%
87%
*
Pioneer
Fund
VCT
Portfolio
(the
“Predecessor
Fund”)
reorganized
with
the
Fund
effective
April
1,
2025
(the
“Reorganization”).
The
Predecessor
Fund
is
the
accounting
survivor
of
the
Reorganization
and
shareholders
holding
Class
I
and
Class
II
shares
of
the
Predecessor
Fund
received
Class
I
and
Class
II
shares
of
the
Fund,
respectively.
(a)
Per
share
net
investment
income
(loss)
has
been
calculated
using
the
average
daily
shares
method.
(b)
Not
annualized
for
periods
less
than
one
year.
(c)
Assumes
reinvestment
of
all
net
investment
income
and
realized
capital
gain
distributions,
if
any,
during
the
period.
Includes
adjustments
in
accordance
with
U.S.
Generally
Accepted
Accounting
Principles
and
could
differ
from
the
reported
return.
(d)
For
the
year
ended
December
31,
2024,
the
Fund’s
total
return
includes
gains
in
settlement
of
class
action
lawsuits.
The
impact
on
Class
II’s
total
return
was
less
than
0.005%.
(e)
Annualized
for
periods
less
than
one
year.
(f)
Does
not
include
acquired
fund
fees
and
expenses,
if
any.
(g)
Portfolio
turnover
is
calculated
on
the
basis
of
the
Fund
as
a
whole
without
distinguishing
between
the
classes
of
shares.
Notes
to
Financial
Statements
June
30,
2026
Victory
Variable
Insurance
Funds
II
10
(Unaudited)
1.
Organization:
Victory
Variable
Insurance Funds
II
(the
“Trust”)
is
organized
as
a
Delaware
statutory
trust
and
is
registered
under
the Investment
Company
Act
of
1940,
as
amended
(the
“1940
Act”),
as
an
open-end
investment
company.
The
Trust
is
comprised
of seven funds
and
is
authorized
to
issue
an
unlimited
number
of
shares,
which
are
units
of
beneficial
interest
with a
par
value
of
$0.001
per
share.
The
Fund's
shares
are
only
available
for
purchase
by
insurance
companies
for
funding
variable
annuity
and
variable
life
insurance
contracts
or
by
qualified
pension
and
retirement
plans.
The
accompanying
financial
statements
are
those
of
the
following
fund
(the
"Fund").
The
fund
is
classified
as
diversified
under
the
1940
Act.
Each
class
of
shares
of the
Fund
has
substantially
identical
rights
and
privileges
except
with
respect
to
sales
charges,
fees
paid
under
distribution
plans,
expenses
allocable
exclusively
to
each
class
of
shares,
voting
rights
on
matters
solely
affecting
a
single
class
of
shares,
and
the
exchange
privilege
of
each
class
of
shares.
 Victory
Capital
Management
Inc.
(“VCM”
or
the
“Adviser”)
is
an
indirect
wholly
owned
subsidiary
of
Victory
Capital
Holdings,
Inc.,
a
publicly
traded
Delaware
corporation,
and
a
wholly
owned
direct
subsidiary
of
Victory
Capital
Operating,
LLC.
Under
the
Trust’s
organizational
documents,
its
officers
and
trustees
are
indemnified
against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Fund.
In
addition,
in
the
normal
course
of
business,
the
Fund
enters
into
contracts
with
its
vendors
and
others
that
provide
for
general
indemnifications.
The
Fund’s
maximum
exposure
under
these
arrangements
is
unknown,
as
this
would
involve
future
claims
that
may
be
made
against
the
Fund.
However,
based
on
experience,
the
Fund
expects
that
risk
of
loss
to
be
remote.
The Fund,
which
commenced
operations
on
April
1,
2025,
is
the
successor
to
the
Pioneer Fund
VCT
Portfolio
(the
“Predecessor
Fund”).
The
Predecessor Fund
transferred
all
of
the
net
assets
of
Class
I
and Class
II
shares
in
exchange
for
the
Fund’s
Class
I  and
Class II
shares,
respectively,
on
April
1,
2025
pursuant
to
an
agreement
and
plan
of
reorganization
(the
“Reorganization”)
which
was
approved
by
the
shareholders
of
the
Predecessor Fund
on
March
27,
2025.
The
Reorganization
was
structured
so
that
the
transfer
of
assets
and
liabilities
did
not
result
in
federal
tax
liability
to
the
Predecessor
Fund or
its
shareholders.
Shareholders
holding
Class
I
and
Class
II shares
of
the
Predecessor Fund
received
Class
I
and
Class II
shares
of
the
Fund,
respectively,
in
the
Reorganization.
The
Predecessor Fund
was
the
accounting
survivor
of
the
Reorganization.
Accordingly,
the
Predecessor
Fund’s
performance
and
financial
history
have
become
the
performance
and
financial
history
of
the
Fund.
The
Fund’s
investment
objective
is
to
seek reasonable
income
and capital
growth.
Effective
April
1,
2025, VCM
serves
as
the
Fund’s
investment
adviser,
succeeding
Amundi
Asset
Management
US,
Inc.
(“Amundi
US”).
On
the
same
date,
Victory
Capital
Services,
Inc.
(the
“Distributor”),
an
affiliate
of
the
Adviser,
became
the
Distributor
for
the
Fund's
shares,
succeeding
Amundi
Distributor
US,
Inc.
The
Distributor
receives
no
fee
or
other
compensation
for
these
services
(See
Note
4).
On
September
30,
2025,
the
Trust’s
Board
of
Trustees
(the
“Board”),
upon
the
recommendation
of
the
Adviser,
approved
a
change
in
the
Fund's
custodian,
sub-administrator,
sub-fund
accountant,
and
transfer
agent.
Effective
as
of
February
9,
2026, Citibank,
N.A.
serves
as
the
custodian
of
the
Fund,
Citi
Fund
Services
Ohio,
Inc.
serves
as
sub-administrator
and
sub-fund
accountant
of
the
Fund
and
FIS
Investor
Services
LLC
serves
as
transfer
agent
of
the
Fund.
2.
Significant
Accounting
Policies:
The
following
is
a
summary
of
significant
accounting
policies
followed
by
the Fund
in
the
preparation
of
its
financial
statements.
The
policies
are
in
conformity
with
U.S.
Generally
Accepted
Accounting
Principles
(“GAAP”).
The
preparation
of
financial
statements
in
accordance
with
GAAP
requires
the
Adviser
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
and
disclosure
of
contingent
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
reported
amounts
of
income
and
expenses
for
the
period.
Actual
results
could
differ
from
those
estimates.
The
Fund
follows
the
specialized
accounting
and
reporting
requirements
under
GAAP
that
are
applicable
to
investment
companies
under
Accounting
Standards
Codification
Topic 946.
Investment
Valuation: 
The
Fund
records
investments
at
fair
value.
Fair
value
is
defined
as
the
price
that
would
be
received
to sell
an asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
at
the
measurement
date.
The
valuation
techniques
described
below
maximize
the
use
of
observable
inputs
and
minimize
the
use
of
unobservable
inputs
in
determining
fair
value.
The
inputs
used
for
valuing
the
Fund’s
investments
are
summarized
in
the
three
broad
levels
listed
below:
Level
1
—
quoted
prices
(unadjusted)
in
active
markets
for
identical
securities
Level
2
—
other
significant
observable
inputs
(including
quoted
prices
for
similar
securities,
interest
rates,
or
credit
spreads,
applicable
to
those
securities,
etc.)
Level
3
—
significant
unobservable
inputs
(including
the
Adviser’s
assumptions
in
determining
the
fair
value
of
investments)
Changes
in
valuation
techniques
may
result
in
transfers
in
or
out
of
an
assigned
level
within
the
disclosure
hierarchy.
The
inputs
or
methodologies
used
for
valuation
techniques
are
not
necessarily
an
indication
of
the
risks
associated
with
entering
into
those
investments.
The Adviser,
appointed
as
the
valuation
designee
by the
Board, has
established
the
Pricing
Committee
(the
“Committee”),
and
subject
to
Board
oversight,
the
Committee
administers
and
oversees
the
Fund’s
valuation
policies
and
procedures,
which
are
approved
by
the
Board.
Portfolio
securities
listed
or
traded
on
securities
exchanges,
including
Exchange-Traded
Funds
(“ETFs”)
and
American
Depositary
Receipts,
are
valued
at
the
last
sale
price
on
the
exchange
or
system
where
the
security
is
principally
traded,
if
available,
or
at
the
Nasdaq
Official
Closing
Fund
(Legal
Name)
Fund
(Short
Name)
Investment
Share
Classes
Offered
Victory
Pioneer
Fund
VCT
Portfolio
Fund
VCT
Portfolio
Class
I
and
Class
II
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
11
(Unaudited)
Price.
If
there
have
been
no
sales
for
that
day
on
the
exchange
or
system,
then
a
security
is
valued
at
the
closing mean
if
available,
otherwise
the
bid
quotation
on
the
exchange
or
system
where
the
security
is
principally
traded.
In
each
of
these
situations,
valuations
are
typically
categorized
as
Level
1
in
the
fair
value
hierarchy.
Investments
in
open-end
investment
companies,
other
than
ETFs, are
valued
at their
net
asset
value
(“NAV”).
These
valuations
are
typically
categorized
as
Level
1 in
the
fair
value
hierarchy.
In
the
event
that
price
quotations
or
valuations
are
not
readily
available,
investments
are
valued
at
fair
value
in
accordance
with
procedures
established
by
and
under
the
general
supervision
and
responsibility
of
the
Board.
These
valuations
are
typically
categorized
as
Level
2
or
Level
3
in
the
fair
value
hierarchy,
based
on
the
observability
of
inputs
used
to
determine
the
fair
value.
The
effect
of
fair
value
pricing
is
that
securities
may
not
be
priced
on
the
basis
of
quotations
from
the
primary
market
in
which
they
are
traded
and
the
actual
price
realized
from
the
sale
of
a
security
may
differ
materially
from
the
fair
value
price.
Valuing
these
securities
at
fair
value
is
intended
to
cause
the
Fund’s
net
asset
value to
be
more
reliable
than
it
otherwise
would
be.
The
principal
exchanges
and
markets
for
non-U.S.
equity
securities
have
closing
times
prior
to
the
close
of
the
New
York
Stock
Exchange.
However,
the
value
of
these
securities
may
be
influenced
by
changes
in
global
markets
occurring
after
the
closing
times
of
the
local
exchanges
and
markets
up
to
the
time
the
Fund
determines
its
net
asset
value.
Consequently,
the
Fund
uses
a
fair
value
model
developed
by
an
independent
pricing
service
to
value
non-U.S.
equity
securities.
On
a
daily
basis,
the
pricing
service
recommends
changes,
based
on
a
proprietary
model,
to
the
closing
market
prices
of
each
non-U.S.
security
held
by
the
Fund
to
reflect
the
security’s
fair
value
at
the
time
the
Fund
determines
its
net
asset
value.
These
recommendations
are
applied
in
accordance
with
the
Adviser’s
(the
valuation
designee’s)
valuation
procedures.
These
valuations
are
typically
categorized
as
Level
2
in
the
fair
value
hierarchy.
A
summary
of
the
valuations
as
of
June
30,
2026, based
upon
the
three
levels
defined
above,
is
included
in
the
table
below
while
the
breakdown,
by
category,
of
investments
is
disclosed
on
the
Schedule
of
Portfolio
Investments
(amounts
in
thousands):
As
of June
30,
2026,
there
were
no
significant transfers
into/out
of
Level
3.
Real
Estate
Investment
Trusts
(“REITs”):
The
Fund
may
invest
in
REITs,
which
report
information
on
the
source
of
their
distributions
annually.
REITs
are
pooled
investment
vehicles
that
invest
primarily
in
income-producing
real
estate
or
real
estate
related
loans
or
interests
(such
as
mortgages).
Certain
distributions
received
from
REITs
will
be
reclassified
to
realized
gains
or
return
of
capital
as
estimated
by
the
Fund
based
on
calendar
year-end
information
as
it
becomes
known
or
available.
Investment
Companies:
Open-End
Funds:
The
Fund
may
invest
in
portfolios
of
open-end
investment
companies.
These
investment
companies
value
securities
in
their
portfolios
for
which
market
quotations
are
readily
available
at
their
market
values
(generally
the
last
reported
sale
price)
and
all
other
securities
and
assets
at
their
fair
value
by
the
methods
established
by
the
board
of
directors
of
the
underlying
funds.
Investment
Transactions
and
Related
Income:
Investment
transactions
are
recorded
on
trade
date.
For
financial
reporting
purposes,
however,
investment
transactions
are
accounted
for
on
trade
date
or
the
last
business
day
of
the
reporting
period.
 Dividend
income
is
recorded
on
the
ex-dividend
date.
Non-cash
dividends
included
in
income,
if
any,
are
recorded
at
the
fair
value
of
the
securities
received.
Gains
or
losses
realized
on
sales
of
securities
are
recorded
on
the
identified
cost
basis. Interest
income
is
accrued
daily
and
recorded
using
the
effective
interest
method,
which
includes
the
amortization
of
premiums
and
accretion
of
discounts
on
debt
securities.
Withholding
taxes
on
foreign
dividends,
interest,
and
capital
gains
have
been
provided
for
in
accordance
with
the
applicable
tax
rules
and
rates
of
each
respective
country.
Foreign
Currency
Translations:
The
accounting
records
of
the
Fund
are
maintained
in
U.S.
dollars.
Investment
securities
and
other
assets
and
liabilities
of the
Fund
denominated
in
a
foreign
currency
are
translated
into
U.S.
dollars
at
current
exchange
rates.
Purchases
and
sales
of
securities,
income
receipts,
and
expense
payments
are
translated
into
U.S.
dollars
at
the
exchange
rates
on
the
date
of
the
transactions.
The
Fund
does
not
isolate
the
portion
of
the
results
of
operations
resulting
from
changes
in
foreign
exchange
rates
on
investments
from
fluctuations
arising
from
changes
in
market
prices
of
securities
held.
Such
fluctuations,
if
any,
are
disclosed
as
Net
change
in
unrealized
appreciation/depreciation
on investment
securities
and
foreign
currency
translations
on
the
Statement
of
Operations.
Realized
gains
or
losses
from
these
fluctuations,
if
any,
are
disclosed
as
Net
realized
gains
(losses)
from
investment
securities
and
foreign
currency
transactions
on
the
Statement
of
Operations.
Level
1
Level
2
Level
3
Total
Fund
VCT
Portfolio
Common
Stocks
...............................................
$
188,210
$
—
$
—
$
188,210
Total
.......................................................
$
188,210
$
—
$
—
$
188,210
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
12
(Unaudited)
Securities
Lending:
Effective
May
8,
2026,
the
Fund,
through
a
Securities
Lending
Agreement
with
Citibank,
N.A.
(“Citibank”),
may
lend
its
securities
to
qualified
financial
institutions,
such
as
certain
broker-dealers
and
banks,
to
earn
additional
income,
net
of
income
retained
by
Citibank.
Borrowers
are
required
to
initially
secure
their
loans
for
collateral
in
the
amount
of
at
least
102%
of
the
value
of
U.S.
securities
loaned
or
at
least
105%
of
the
value
of
non-U.S.
securities
loaned,
marked-to-market
daily.
Any
collateral
shortfalls
associated
with
increases
in
the
valuation
of
the
securities
loaned
are
generally
cured
the
next
business
day.
The
collateral
can
be
received
in
the
form
of
cash
collateral
and/or
non-cash
collateral.
Non-
cash
collateral
can
include
U.S.
Government
Securities
and
other
securities
as
permitted
by Securities
and
Exchange
Commission
(“SEC”)
guidelines.
The
cash
collateral
is
invested
in
short-term
instruments
or
cash
equivalents,
primarily
open-end
investment
companies,
as
noted
on
the
Fund’s
Schedule
of
Portfolio
Investments.
The
Fund
effectively
does
not
have
control
of
the
non-cash
collateral
and
therefore
it
is
not
disclosed
on
the
Fund’s
Schedule
of
Portfolio
Investments.
Collateral
requirements
are
determined
daily
based
on
the
value
of
the
Fund’s
securities
on
loan
as
of
the
end
of
the
prior
business
day.
During
the
time
portfolio
securities
are
on
loan,
the
borrower
will
pay
the
Fund
any
dividends
or
interest
paid
on
such
securities
plus
any
fee
negotiated
between
the
parties
to
the
lending
agreement.
The
Fund
also
earns
a
return
from
the
collateral.
The
Fund
pays
Citibank
various
fees
in
connection
with
the
investment
of
cash
collateral
and
fees
based
on
the
investment
income
received
from
securities
lending
activities.
Securities
lending
income
(net
of
these
fees)
is
disclosed
on
the
Statement
of
Operations.
Loans
are
terminable
upon
demand
and
the
borrower
must
return
the
loaned
securities
within
the
lesser
of
one
standard
settlement
period
or
five
business
days.
Although
risk
is
mitigated
by
the
collateral,
the
Fund
could
experience
a
delay
in
recovering
its
securities
and
possible
loss
of
income
or
value
if
the
borrower
fails
to
return
them.
In
addition,
there
is
a
risk
that
the
value
of
the
short-term
investments
will
be
less
than
the
amount
of
cash
collateral
required
to
be
returned
to
the
borrower.
The
Fund’s
agreement
with
Citibank
does
not
include
master
netting
provisions.
Non-cash
collateral
received
by
the
Fund
may
not
be
sold
or
repledged,
except
to
satisfy
borrower
default.
As
of
June
30,
2026,
the
Fund
did
not
have
any
securities
on
loan.
Federal
Income
Taxes:
The
Fund
intends
to
continue
to
qualify
as
a
regulated
investment
company
by
complying
with
the
provisions
available
to
certain
investment
companies,
as
defined
in
applicable
sections
of
the
Internal
Revenue
Code,
and
to
make
distributions
of
net
investment
income
and
net
realized
gains
sufficient
to
relieve
it
from
all,
or
substantially
all,
federal
income
taxes.
Accordingly,
no
provision
for
federal
income
taxes
is
required
in
the
financial
statements.
The
Fund
has
a
tax
year
end
of December
31.
For
the
six
months
ended
June
30,
2026,
the
Fund
did
not
incur
any
income
tax,
interest,
or
penalties,
and
has
recorded
no
liability
for
net
unrecognized
tax
benefits
relating
to
uncertain
tax
positions.
Management
of
the
Fund
has
reviewed
tax
positions
taken
in
tax
years
that
remain
subject
to
examination
by
all
major
tax
jurisdictions,
including
federal
(i.e.,
the
last
four
tax
years,
which
includes
the
current
fiscal
tax
year
end).
Management
believes
that
there
is
no
tax
liability
resulting
from
unrecognized
tax
benefits
related
to
uncertain
tax
positions
taken.
Foreign
Taxes:
The
Fund
may
be
subject
to
foreign
taxes
related
to
foreign
income
received
(a
portion
of
which
may
be
reclaimable),
capital
gains
on
the
sale
of
securities,
and
certain
foreign
currency
transactions.
All
foreign
taxes
are
recorded
in
accordance
with
the
applicable
regulations
and
rates
that
exist
in
the
foreign
jurisdictions
in
which
the
Fund
invests.
Allocations:
Expenses
directly
attributable
to the
Fund
are
charged
to the
Fund,
while
expenses
that
are
attributable
to
more
than
one
fund
in
the
Trust,
or
jointly
with
an
affiliated
trust,
are
allocated
among
the
respective
funds
in
the
Trust
and/or
an
affiliated
trust
based
upon
net
assets
or
another
appropriate
basis.
Income,
expenses
(other
than
class-specific
expenses
such
as
transfer
agent
fees,
state
registration
fees,
printing
fees,
and
12b-1
fees),
and
realized
and
unrealized
gains
or
losses
on
investments
are
allocated
to
each
class
of
shares
based
on
its
relative
net
assets
on
the
date
income
is
earned
or
expenses
and
realized
and
unrealized
gains
and
losses
are
incurred.
Fees
Paid
Indirectly:
Expense
offsets
to
custody
fees
that
arise
from
credits
on
cash
balances
maintained
on
deposit
are
reflected
on
the
Statement
of
Operations,
as
applicable,
as
Fees
paid
indirectly.
3.
Purchases
and
Sales:
Purchases
and sales
of
securities
(excluding
securities
maturing
less
than
one
year
from
acquisition)
for
the
six
months
ended
June
30,
2026,
were
as
follows
(amounts
in
thousands):
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
13
(Unaudited)
4.
Fees
and
Transactions
with
Affiliates
and
Related
Parties:
Investment
Advisory
Fees: 
Investment
advisory
services
are
provided
to
the
Fund
by
the
Adviser,
which
is
a
New
York
corporation
registered
as
an
investment
adviser
with
the
SEC.
Under
the
terms
of
the
Investment
Advisory
Agreement,
the
Adviser
is
entitled
to
receive
fees
accrued
daily
and
paid
monthly
at
an
annualized
rate
of
0.65%
of
the
Fund’s
average
daily
net
assets.
Amounts
incurred
and
paid
to
VCM
for
the six
months
ended
June
30,
2026,
are
reflected
on
the
Statement
of
Operations
as
Investment
advisory
fees.
Administration
and
Servicing
Fees:
VCM
also
serves
as
the
Fund’s
administrator
and
fund
accountant.
Under
the Administration
and
Fund
Accounting
Agreement,
VCM
is
paid
an
administration
fee
based
on
a
percentage
of
the
average
daily
net
assets
of
all
Companies
and
Funds
(as
defined
in
the
Administration
and
Fund
Accounting
Agreement)
together
with
all
other
registered
investment
companies
for
which
VCM
acts
as
administrator,
and allocated
to the
Fund
on
a
pro
rata
basis
calculated
based
on
the
Fund’s
average
daily
net
assets.
The
tiered
rates
at
which
VCM
is
paid
by
the
Fund
are
shown
in
the
table
below:
Amounts
incurred
for
the
six
months
ended
June
30,
2026,
are
reflected
on
the
Statement
of
Operations
as
Administration
fees.
Effective
February
9,
2026,
Citi
Fund
Services
Ohio,
Inc.
(“Citi”),
an
affiliate
of
Citibank,
acts
as
sub-administrator
and
sub-fund
accountant
to
the
Fund
pursuant
to
a
Sub-Administration
and
Sub-Fund
Accounting
Services
Agreement
between
VCM
and
Citi.
VCM
pays
Citi
a
fee
for
providing
these
services.
The
Fund
reimburses
VCM
and
Citi
for
out-of-pocket
expenses
incurred
in
providing
these
services,
including
costs
associated
with
the
Chief
Compliance
Officer,
and
implementing
new
reports
required
by
new
rules
adopted
by
the
SEC
under
the
1940
Act.
Prior
to
February
9,
2026,
BNY
Mellon
served
as
sub-administrator
and
sub-fund
accountant
for
the
Fund.
The
total
amounts
incurred
and
paid
for the six
months
ended June
30,
2026,
are
reflected
within
the
Sub-Administration
fees
on
the
Statement
of
Operations.
Transfer
Agency
Fees:
Effective February
9,
2026,
FIS
Investor
Services
LLC
serves
as
the
Fund’s
transfer
agent.
Under
the
Transfer
Agent
Agreement,
the
Trust
pays
FIS
a
fee
for
its
services
and
reimburses
FIS
for
all
of its
reasonable
out-of-pocket
expenses
incurred
in
providing
these
services.
Prior
to February
9,
2026,
BNY
Mellon
Investment
Servicing
(US)
Inc.
served
as
the
transfer
agent
to
the
Fund at
negotiated
rates
where
transfer
agent
fees
included
sub-transfer
agent
expenses
incurred
through
the
Fund’s
omnibus
relationship
contracts.
In
addition,
the
Fund
would
reimburse
out-of-pocket
expenses
incurred
by
the
former
transfer
agent
related
to
shareholder
communications
activities
such
as
proxy
and
statement
mailings,
and
outgoing
phone
calls.
Total
transfer
agent
fees
incurred
for
the
six
months ended
June
30,
2026,
are
reflected
on
the
Statement
of
Operations
as
Transfer
agent
fees.
Sub-Transfer
Agency
Fees:
Effective
February
9,
2026,
the
Fund
has
entered
into
Sub-Transfer
Agency
Agreements
with
financial
intermediaries
that
provide
recordkeeping,
processing,
shareholder
communications
and
other
services
to
customers
of
the
intermediaries
that
hold
positions
in
the
Fund
and
have
agreed
to
compensate
the
intermediaries
for
providing
those
services.
Intermediaries
transact
with
the
Fund
primarily
through
the
use
of
omnibus
accounts
on
behalf
of
their
customers
who
hold
positions
in
the
Fund.
These
services
would
have
been
provided
by
the
Fund’s
transfer
agent
and
other
service
providers
if
the
shareholders'
accounts
were
maintained
directly
at
the
Fund's
transfer
agent.
Prior
to
February
9,
2026,
BNY
Mellon
served
as
sub-transfer
agent.
Total
sub-transfer
agent
fees
incurred
for
the six
months
ended
June
30,
2026,
are
reflected
on
the
Statement
of
Operations
as
Sub-Transfer
agent
fees.
Distributor/Underwriting
Services:
Victory
Capital
Services, Inc.
(the
“Distributor”),
an
affiliate
of
the
Adviser,
serves
as
Distributor
for
the
continuous
offering
of
the
shares
of
the
Fund
pursuant
to
a
Distribution
Agreement
between
the
Distributor
and
the
Trust.
Pursuant
to
the
Distribution
and
Service
Plans
adopted
in
accordance
with
Rule
12b-1
under
the
1940
Act,
the
Distributor
may
receive
a
monthly
distribution
and
service
fee
for
Class
II
at
an
annual
rate
of
up
to
0.25%
of
the
average
daily
net
assets.
Amounts
incurred
and
paid
to
the
Distributor
for
the
six
months
ended
June
30,
2026, are
reflected
on
the
Statement
of
Operations
as
12b-1
fees.
Excluding
U.S.
Government
Securities
Purchases
Sales
Fund
VCT
Portfolio
........................................................................
$
60,272
$
57,195
Annual
Charge
Up
to
$15
billion
Over
$15
billion
-
$30
billion
Over
$30
billion
-
$85
billion
Over
$85
billion
Fund
VCT
Portfolio
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
0.08%,
plus
0.05%,
plus
0.04%,
plus
0.03%
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
14
(Unaudited)
Other
Fees:
Effective
February
9,
2026,
Citibank
serves
as
the
Fund's
custodian.
The
Fund
pays
Citibank
a
fee
for
providing
these
services.
Prior
to
February
9,
2026,
BNY
Mellon
served
as
the
Fund's
custodian. Total
custodian
fees
incurred
for
the
period ended
June
30,
2026, are
reflected
on
the
Statement
of
Operations
as
Custodian
fees.
Sidley
Austin
LLP
provides
legal
services
to
the
Trust.
The
Adviser
has
entered
into
an
expense
limitation
agreement
with the Fund.
Under
the
terms
of
the
agreement,
the
Adviser
has
agreed
to
waive
fees
or
reimburse
certain
expenses
to
the
extent
that
ordinary
operating
expenses
incurred
by
certain
classes
of
the
Fund
in
any
fiscal
year
exceed
the
expense limits
for
such
classes
of the
Fund.
Such
excess
amounts
will
be
the
liability
of
the
Adviser. Acquired
fund
fees
and
expenses,
interest,
taxes,
brokerage
commissions,
other
expenditures which
are
capitalized
in
accordance
with
GAAP,
and
other
extraordinary
expenses
not
incurred
in
the
ordinary
course
of the
Fund’s
business
are
excluded
from
the
expense
limits.
As
of
June
30,
2026,
the
expense
limits
(excluding
voluntary
waivers) were
as
follows:
Under
the
terms
of
the
expense
limitation
agreement,
the
Fund
has
agreed
to
repay
fees
and
expenses
that
were
waived
or
reimbursed
by
the
Adviser
for
a
period
of
up
to two
years
(twenty-four
(24)
months)
after
the
waiver
or
reimbursement
took
place,
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
Fund
has
not
recorded
any
amounts
available
to
be
repaid
to
the
Adviser
as
a
commitment
and
contingency
liability
due
to
an
assessment
that
such
repayments
are
not
probable
at
June
30,
2026.
Additionally,
as
of June
30,
2026,
the
Fund
had
no recoupable
amounts available
to
be
repaid
to
the
Adviser.
The
Adviser
may
voluntarily
waive
or
reimburse
additional
fees
and
expenses
or
make
other
payments to
assist
the
Fund
in
maintaining
competitive
expense
ratios.
Except
as
noted
above,
voluntary
waivers
and
reimbursements
applicable
to
the
Fund are
not
available
to
be
recouped
at
a
future
time.
There
were
no
voluntary
waivers
or
reimbursements
for
the six
months
ended
June
30,
2026.
Certain
officers
and/or
interested
trustees
of
the
Fund
are
also
officers
and/or
employees
of
the
Adviser,
administrator,
fund
accountant,
legal
counsel,
and
Distributor.
5.
Risks:
The
following
describes
principal
risks
that
you
may
assume
as
an
investor
in
the
Fund.
The
Fund’s
prospectus
contains
unaudited
information
regarding
the
Fund’s
principal
risks.
Please
refer
to
that
document
when
considering
the
Fund’s
principal
risks.
The
Fund
may
be
subject
to
other
risks
in
addition
to
these
identified
risks.
Market
Risk
—
The
market
prices
of
securities
or
other
assets
held
by
the
Fund
may
go
up
or
down,
sometimes
rapidly
or
unpredictably,
due
to
general
market
conditions,
such
as
real
or
perceived
adverse
economic,
political,
or
regulatory
conditions,
political
instability,
recessions,
inflation,
changes
in
interest
or
currency
rates,
lack
of
liquidity
in
the
markets,
the
spread
of
infectious
illness
or
other
public
health
issues,
weather
or
climate
events,
armed
conflict,
market
disruptions
caused
by
tariffs,
trade
disputes,
sanctions
or
other
government
actions,
or
other
factors
or
adverse
investor
sentiment.
If
the
market
prices
of
the
Fund’s
securities
and
assets
fall,
the
value
of
your
investment
will
go
down.
A
change
in
financial
condition
or
other
event
affecting
a
single
issuer
or
market
may
adversely
impact
securities
markets
as
a
whole.
Equity
Securities
Risk
—
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
in
the
United
States
or
abroad.
A
company’s
earnings
or
dividends
may
not
increase
as
expected
(or
may
decline)
because
of
poor
management,
competitive
pressures,
reliance
on
particular
suppliers
or
geographical
regions,
labor
problems
or
shortages,
corporate
restructurings,
fraudulent
disclosures,
man-made
or
natural
disasters,
military
confrontations
or
wars,
terrorism,
public
health
crises,
or
other
events,
conditions,
and
factors.
Price
changes
may
be
temporary
or
last
for
extended
periods.
Equity
securities
have
the
lowest
priority,
and
the
greatest
risk,
with
respect
to
dividends
and
any
liquidation
payments
in
the
event
of
an
issuer’s
bankruptcy.
Value
Style Risk
—
The
prices
of
securities
the
Adviser
believes
are
undervalued
may
not
appreciate
as
expected
or
may
go
down.
Value
stocks
may
fall
out
of
favor
with
investors
and
underperform
the
overall
equity
market.
A
value
stock
may
not
increase
in
price
as
anticipated
by
the
Adviser
if
other
investors
fail
to
recognize
the
company’s
value
and
bid
up
the
price
or
the
factors
that
the
Adviser
believes
will
increase
the
price
of
the
security
do
not
occur
or
do
not
have
the
anticipated
effect.
Portfolio
Selection
Risks
—
The
Adviser’s
judgment
about
a
particular
security
or
issuer,
or
about
the
economy
or
a
particular
sector,
region,
market
segment
or
industry,
or
about
an
investment
strategy,
may
prove
to
be
incorrect
or
may
not
produce
the
desired
results,
or
there
may
be
imperfections,
errors
or
limitations
in
the
models,
tools
and
information
used
by
the
Adviser.
In
effect
until
April
1,
2028
Class
I
Class
II
Fund
VCT
Portfolio
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
0.75%
1.00%
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
15
(Unaudited)
6.
Interfund
Lending:
The
Trust
and
the
Adviser
rely
on
an
exemptive
order
granted
by
the
SEC
in
March
2017
(the
“Order”),
permitting
the
establishment
and
operation
of
an
Interfund
Lending
Facility
(the
“Facility”).
The
Facility
allows
the
Fund
to
directly
lend
and
borrow
money
to
or
from
any
other
fund
in
the
Victory
Funds
Complex
that
is
permitted
to
participate
in
the
Facility,
relying
upon
the
Order
at
rates
beneficial
to
both
the
borrowing
and
lending
funds.
Advances
under
the
Facility
are
allowed
for
temporary
or
emergency
purposes,
including
the
meeting
of
redemption
requests
that
otherwise
might
require
the
untimely
disposition
of
securities,
and
are
subject
to
each
Fund’s
borrowing
restrictions.
The
interfund
loan
rate
is
determined,
as
specified
in
the
Order,
by
averaging
the
current
repurchase
agreement
rate
and
the
current
bank
loan
rate.
As
a
Borrower
(as
defined
in
the
Order),
interest
charged
to
the
Fund,
if
any,
during
the
period,
is
reflected
on
the
Statement
of
Operations
under
Interfund
lending
fees.
As
a
Lender
(as
defined
in
the
Order),
interest
earned
by
the
Fund,
if
any,
during
the
period,
is
reflected
on
the
Statement
of
Operations
under
Interfund
lending.
The
Fund
did
not
utilize
or
participate
in
the
Facility
during
the
six
months
ended
June
30,
2026.
7.
Federal
Income
Tax
Information:
The
Fund
intends
to
distribute
any
net
investment
income
quarterly.
Distributable
net
realized
gains,
if
any,
are
declared
and
paid
at
least
annually.
The
amounts
of
dividends
from
net
investment
income
and
distributions
from
net
realized
gains
(collectively,
distributions
to
shareholders)
are
determined
in
accordance
with
federal
income
tax
regulations,
which
may
differ
from
GAAP.
To
the
extent
these
“book/tax”
differences
are
permanent
in
nature
(e.g.,
net
operating
loss
and
distribution
reclassification,
utilized
earnings
and
profit
distributions
to
shareholders
on
redemption
of
shares
as
part
of
the
dividends
paid
deduction
for
income
tax
purposes),
such
amounts
are
reclassified
within
the
components
of
net
assets
based
on
their
federal
tax-basis
treatment;
temporary
differences
(e.g.,
wash
sales)
do
not
require
reclassification.
To
the
extent
dividends
and
distributions
exceed
net
investment
income
and
net
realized
gains
for
tax
purposes,
they
are
reported
as
distributions
of
capital.
Net
investment
losses
incurred
by
the
Fund
may
be
reclassified
as
an
offset
to
capital
on
the
accompanying
Statement
of
Assets
and
Liabilities.
The
tax
character
of
current
year
distributions
paid
and
the
tax
basis
of
the
current
components
of
accumulated
earnings
(losses)
will
be
determined
at
the
end
of
the
current
tax
year.
At
the
tax year
ended December
31,
2025,
the
Fund
had
no
capital
loss
carryforwards
for
federal
income
tax
purposes.
8.
Segment
Reporting:
The
Adviser’s
Management
Committee
acts
as
the
Fund’s
Chief
Operating
Decision
Maker
(“CODM”).
The
Fund
represents
a
single
operating
segment,
as
the
CODM
monitors
the
operating
results
of
the
Fund
as
a
whole
and
the
Fund’s
long-term
strategic
asset
allocation
is
predetermined
in
accordance
with
the
Fund's
single
investment
objective.
The
financial
information
in
the
form
of
the
Fund’s
portfolio
composition,
total
returns,
expense
ratios,
and
changes
in
net
assets,
which
are
used
by
the
CODM
to
assess
the
segment’s
performance
versus
the
Fund’s
comparative
benchmarks
and
to
make
resource
allocation
decisions
for
the
Fund’s
single
segment,
is
consistent
with
that
presented
within
the
Fund’s
financial
statements.
Segment
assets
are
reflected
on
the
accompanying
Statement
of
Assets
and
Liabilities
as
“total
assets”
and
significant
segment
expenses
are
listed
on
the
accompanying
Statement
of
Operations.
Victory
Funds
P.O.
Box
182593
Columbus,
Ohio
43218-2593
Visit
our
website
at:
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Victory
at:
(800)
539-3863
19611-0826
June
30,
2026
Semi-Annual:
Full
Financials
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
High
Yield
VCT
Portfolio
TABLE
OF
CONTENTS
Victory
Variable
Insurance
Funds
II
1
The
Fund
is
distributed
by
Victory
Capital
Services,
Inc.
Victory
Capital
Management
Inc.
is
the
investment
adviser
to
the
Fund
and
receives
fees
from
the
Fund
for
performing
services
for
the
Fund.
This
report
is
not
authorized
for
distribution
to
prospective
investors
unless
preceded
or
accompanied
by
a
current
prospectus
of
the
Fund.
For
additional
information
about
any
Victory
Fund,
including
fees,
expenses,
and
risks,
view
our
prospectus
online
at
vcm.com
or
call
800-539-3863.
Read
it
carefully
before
you
invest
or
send
money.
The
information
in
this
report
is
based
on
data
obtained
from
recognized
services
and
sources
and
is
believed
to
be
reliable.
Any
opinions,
projections,
or
recommendations
in
this
report
are
subject
to
change
without
notice
and
are
not
intended
as
individual
investment
advice.
Past
investment
performance
of
the
Fund,
markets
or
securities
mentioned
herein
should
not
be
considered
to
be
indicative
of
future
results
•
NOT
FDIC
INSURED
•
NO
BANK
GUARANTEE
•
MAY
LOSE
VALUE
Schedule
of
Portfolio
Investments
(Form
N-CSR
Item
6)
2
Financial
Statements
(Form
N-CSR
Item
7)
Statement
of
Assets
and
Liabilities
8
Statement
of
Operations
9
Statements
of
Changes
in
Net
Assets
10
Financial
Highlights
12
Notes
to
Financial
Statements
(Form
N-CSR
Item
7)
14
Schedule
of
Portfolio
Investments
June
30,
2026
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
High
Yield
VCT
Portfolio
2
(Unaudited)
See
notes
to
financial
statements.
Security
Description
Shares
a
Value
(000)
Common
Stocks
(0.6%)
Communication
Services
(0.1%):
Altice
France
SA
(a)
.....................................................
1,176
$
24
Health
Care
(0.0%):(b)
Option
Care
Health,
Inc.
(a)
................................................
40
1
Industrials
(0.5%):
Grupo
Aeromexico
SAB
de
CV
(a)
...........................................
67,300
121
Total
Common
Stocks
(Cost
$67)
a
a
a
146
Principal
Amount
(000)
Senior
Secured
Loans
(2.2%)
Consumer
Discretionary
(0.8%):
River
Rock
Entertainment
Authority,
Term
Loan,
First
Lien
,
12
.62
%
(
SOFR01M
+
900
bps
)
,
11/24/31
(c)
.......................................................
$
235
232
Financials
(0.7%):
1261229
BC
Ltd.,
Initial
Term
Loan,
First
Lien
,
9
.89
%
(
SOFR01M
+
625
bps
)
,
10/8/30
(c)
....
129
125
LC
Ahab
US
Bidco
LLC,
Second
Amendment
Incremental
Term
Loan,
First
Lien
,
6
.14
%
(
SOFR01M
+
250
bps
)
,
4/14/31
(c)
........................................
64
64
189
Health
Care
(0.1%):
Endo
Finance
Holdings,
Inc.,
Term
B
Loan
,
7
.39
%
(
SOFR01M
+
375
bps
)
,
4/23/31
(c)
.......
29
29
Materials
(0.4%):
Worthington
Steel,
Inc.,
Initial
Term
Loan,
First
Lien
,
7
.62
%
(
SOFR01M
+
400
bps
)
,
6/1/33
(c)
.
100
100
Utilities
(0.2%):
Alpha
Generation
LLC,
Initial
Term
B
Loan
,
5
.39
%
(
SOFR01M
+
175
bps
)
,
9/30/31
(c)
......
54
54
Total
Senior
Secured
Loans
(Cost
$600)
a
a
a
604
Corporate
Bonds
(71.5%)
Communication
Services
(8.8%):
APLD
ComputeCo
2
LLC
,
6
.75
%
,
3/15/31
,
Callable
3/15/28
@
103.38
(d)
..............
70
70
CCO
Holdings
LLC/CCO
Holdings
Capital
Corp.
,
4
.50
%
,
6/1/33
,
Callable
6/1/27
@
102.25
(d)
482
418
Clear
Channel
Outdoor
Holdings,
Inc.
7
.50
%
,
6/1/29
,
Callable
7/21/26
@
100
(d)
.................................
184
184
7
.50
%
,
3/15/33
,
Callable
9/15/28
@
103.75
(d)
..............................
50
53
CSC
Holdings
LLC
,
4
.50
%
,
11/15/31
,
Callable
11/15/26
@
102.25
(d)
.................
380
225
Gray
Media,
Inc.
10
.50
%
,
7/15/29
,
Callable
7/15/26
@
105.25
(d)
.............................
108
114
7
.25
%
,
8/15/33
,
Callable
8/15/28
@
103.63
(d)
..............................
106
104
Level
3
Financing,
Inc.
,
6
.88
%
,
6/30/33
,
Callable
6/30/28
@
103.44
(d)
................
163
168
Neptune
Bidco
US,
Inc.
9
.29
%
,
4/15/29
,
Callable
8/1/26
@
104.65
(d)
...............................
125
127
10
.38
%
,
5/15/31
,
Callable
11/15/27
@
105.19
(d)
............................
100
104
9
.50
%
,
2/15/33
,
Callable
2/15/29
@
104.75
(d)
..............................
70
71
Stagwell
Global
LLC
,
5
.63
%
,
8/15/29
,
Callable
8/1/26
@
101.41
(d)
...................
249
240
Uniti
Group
LP/Uniti
Group
Finance,
Inc./CSL
Capital
LLC
6
.50
%
,
2/15/29
,
Callable
7/12/26
@
100
(d)
................................
140
139
8
.63
%
,
6/15/32
,
Callable
6/15/28
@
104.31
(d)
..............................
75
78
8
.63
%
,
6/15/32
,
Callable
6/15/28
@
104.31
(d)
..............................
50
52
Windstream
Services
LLC/Windstream
Escrow
Finance
Corp.
,
8
.25
%
,
10/1/31
,
Callable
10/1/27
@
104.13
(d)
................................................
230
243
2,390
Consumer
Discretionary
(8.8%):
Avis
Budget
Car
Rental
LLC/Avis
Budget
Finance,
Inc.
8
.00
%
,
2/15/31
,
Callable
11/15/26
@
104
(d)
...............................
50
51
8
.38
%
,
6/15/32
,
Callable
6/15/28
@
104.19
(d)
..............................
100
101
Beazer
Homes
USA,
Inc.
,
8
.00
%
,
1/15/32
,
Callable
7/15/28
@
104
(d)
.................
40
40
Brinker
International,
Inc.
,
8
.25
%
,
7/15/30
,
Callable
7/15/26
@
104.13
(d)
..............
257
268
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
High
Yield
VCT
Portfolio
3
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
June
30,
2026
See
notes
to
financial
statements.
Security
Description
Principal
Amount
(000)
a
Value
(000)
Champions
Financing,
Inc.
,
8
.75
%
,
2/15/29
,
Callable
8/1/26
@
104.38
(d)
...............
$
233
$
227
Macy's
Retail
Holdings
LLC
6
.13
%
,
3/15/32
,
Callable
3/15/27
@
103.06
(d)
..............................
300
302
7
.38
%
,
8/1/33
,
Callable
8/1/28
@
103.69
(d)
................................
138
145
McGraw-Hill
Education,
Inc.
,
8
.00
%
,
8/1/29
,
Callable
8/1/26
@
100
(d)
................
177
177
Mohegan
Tribal
Gaming
Authority
8
.25
%
,
4/15/30
,
Callable
4/15/27
@
104.13
(d)
..............................
107
111
11
.88
%
,
4/15/31
,
Callable
4/15/27
@
105.94
(d)
.............................
106
115
Petco
Health
&
Wellness
Co.,
Inc.
,
8
.25
%
,
2/1/31
,
Callable
2/1/28
@
104.13
(d)
..........
135
136
PetSmart
LLC/PetSmart
Finance
Corp.
,
7
.50
%
,
9/15/32
,
Callable
9/15/28
@
103.75
(d)
.....
250
250
The
Michaels
Cos.,
Inc.
,
8
.50
%
,
3/15/33
,
Callable
3/15/29
@
104.25
(d)
................
280
277
Whirlpool
Corp.
,
7
.50
%
,
7/1/31
,
Callable
7/1/28
@
103.75
(d)
.......................
20
20
ZF
North
America
Capital,
Inc.
,
7
.50
%
,
3/24/31
,
Callable
1/24/31
@
100
(d)
.............
172
173
2,393
Consumer
Staples
(1.5%):
Energizer
Holdings,
Inc.
4
.38
%
,
3/31/29
,
Callable
8/1/26
@
100
(d)
.................................
57
55
6
.00
%
,
9/15/33
,
Callable
9/15/28
@
103
(d)
................................
172
165
Fiesta
Purchaser,
Inc.
7
.88
%
,
3/1/31
,
Callable
3/1/27
@
103.94
(d)
................................
25
25
9
.63
%
,
9/15/32
,
Callable
9/15/27
@
104.81
(d)
..............................
167
164
409
Energy
(10.4%):
Alliance
Resource
Operating
Partners
LP/Alliance
Resource
Finance
Corp.
,
8
.63
%
,
6/15/29
,
Callable
7/12/26
@
104.31
(d)
..........................................
254
266
CQP
Holdco
LP/BIP-V
Chinook
Holdco
LLC
5
.50
%
,
6/15/31
,
Callable
8/1/26
@
102.75
(d)
...............................
146
143
7
.50
%
,
12/15/33
,
Callable
12/15/28
@
103.75
(d)
............................
250
261
Delek
Logistics
Partners
LP/Delek
Logistics
Finance
Corp.
8
.63
%
,
3/15/29
,
Callable
7/12/26
@
104.31
(d)
..............................
53
55
7
.38
%
,
6/30/33
,
Callable
6/30/28
@
103.69
(d)
..............................
131
133
6
.88
%
,
6/1/34
,
Callable
6/1/29
@
103.44
(d)
................................
60
60
Enerflex,
Inc.
,
6
.88
%
,
1/15/31
,
Callable
1/15/28
@
103.44
(d)
.......................
65
67
Harvest
Midstream
I
LP
,
6
.75
%
,
5/15/34
,
Callable
5/15/29
@
103.38
(d)
................
35
35
Hilcorp
Energy
I
LP/Hilcorp
Finance
Co.
6
.00
%
,
4/15/30
,
Callable
8/1/26
@
102
(d)
.................................
50
49
6
.25
%
,
4/15/32
,
Callable
5/15/27
@
103.13
(d)
..............................
113
109
7
.25
%
,
2/15/35
,
Callable
2/15/30
@
103.63
(d)
..............................
151
149
Kodiak
Gas
Services
LLC
5
.88
%
,
4/1/31
,
Callable
4/1/28
@
102.94
(d)
................................
15
15
6
.50
%
,
10/1/33
,
Callable
10/1/28
@
103.25
(d)
..............................
204
207
Kraken
Oil
&
Gas
Partners
LLC
7
.63
%
,
8/15/29
,
Callable
8/15/26
@
103.81
(d)
..............................
179
181
7
.13
%
,
5/15/31
,
Callable
5/15/28
@
103.56
(d)
..............................
80
78
Summit
Midstream
Holdings
LLC
,
8
.63
%
,
10/31/29
,
Callable
8/1/26
@
104.31
(d)
........
185
193
USA
Compression
Partners
LP/USA
Compression
Finance
Corp.
,
7
.13
%
,
3/15/29
,
Callable
8/1/26
@
103.56
(d)
.................................................
211
216
Venture
Global
Calcasieu
Pass
LLC
,
6
.00
%
,
5/1/36
,
Callable
11/1/35
@
100
(d)
..........
80
81
Venture
Global
Plaquemines
LNG
LLC
6
.13
%
,
12/15/30
,
Callable
9/15/30
@
100
(d)
...............................
80
82
7
.50
%
,
5/1/33
,
Callable
12/1/32
@
100
(d)
.................................
60
66
6
.50
%
,
1/15/34
,
Callable
7/15/33
@
100
(d)
................................
65
68
6
.75
%
,
1/15/36
,
Callable
7/15/35
@
100
(d)
................................
67
71
Wildfire
Intermediate
Holdings
LLC
,
7
.50
%
,
10/15/29
,
Callable
10/15/26
@
103.75
(d)
.....
252
258
2,843
Financials
(11.0%):
Ally
Financial,
Inc.
,
6
.18
%
(
SOFR
+
229
bps
)
,
7/26/35
,
Callable
7/26/34
@
100
(c)
.........
334
339
Asurion
LLC/
Asurion
Co-Issuer,
Inc.
,
8
.38
%
,
2/1/34
,
Callable
2/1/29
@
104.19
(d)
........
90
83
Freedom
Mortgage
Corp.
6
.63
%
,
1/15/27
,
Callable
7/17/26
@
100
(d)
................................
15
15
12
.25
%
,
10/1/30
,
Callable
10/1/26
@
106.13
(d)
.............................
150
162
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
High
Yield
VCT
Portfolio
4
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
June
30,
2026
See
notes
to
financial
statements.
Security
Description
Principal
Amount
(000)
a
Value
(000)
Freedom
Mortgage
Holdings
LLC
9
.25
%
,
2/1/29
,
Callable
8/1/26
@
104.63
(d)
................................
$
65
$
67
6
.88
%
,
5/1/31
,
Callable
5/1/28
@
103.44
(d)
................................
115
112
9
.13
%
,
5/15/31
,
Callable
5/15/27
@
104.56
(d)
..............................
55
57
8
.38
%
,
4/1/32
,
Callable
4/1/28
@
104.19
(d)
................................
10
10
FS
KKR
Capital
Corp.
,
7
.50
%
,
8/1/31
,
Callable
5/1/31
@
100
.......................
75
75
HUT
8
DC
LLC
,
6
.19
%
,
11/15/42
,
Callable
5/15/42
@
100
(d)
.......................
50
51
ION
Platform
Finance
US,
Inc./ION
Platform
Finance
SARL
,
9
.00
%
,
8/1/29
,
Callable
8/1/26
@
104.5
(d)
.......................................................
240
214
LFS
Topco
LLC
,
8
.75
%
,
7/15/30
,
Callable
7/15/27
@
104.38
(d)
.....................
237
238
OneMain
Finance
Corp.
6
.13
%
,
5/15/30
,
Callable
11/15/29
@
100
..................................
10
10
6
.50
%
,
3/15/33
,
Callable
9/15/28
@
103.25
................................
120
118
6
.75
%
,
9/15/33
,
Callable
12/15/28
@
103.38
...............................
110
109
Provident
Funding
Associates
LP/PFG
Finance
Corp.
,
9
.75
%
,
9/15/29
,
Callable
9/15/26
@
104.88
(d)
........................................................
195
204
Starwood
Property
Trust,
Inc.
5
.25
%
,
10/15/28
,
Callable
7/15/28
@
100
(d)
...............................
50
50
5
.88
%
,
8/15/29
,
Callable
5/15/29
@
100
(d)
................................
15
15
5
.75
%
,
1/15/31
,
Callable
7/15/30
@
100
(d)
................................
75
74
6
.13
%
,
6/1/31
,
Callable
12/1/30
@
100
(d)
.................................
55
55
Stonebriar
ABF
Issuer
LLC
,
8
.13
%
,
12/15/30
,
Callable
12/15/27
@
104.06
(d)
...........
115
120
UWM
Holdings
LLC
,
6
.25
%
,
3/15/31
,
Callable
3/15/28
@
103.13
(d)
..................
279
249
Velocity
Vehicle
Group
LLC
,
8
.00
%
,
6/1/29
,
Callable
8/1/26
@
104
(d)
................
313
309
Voyager
Parent
LLC
,
9
.25
%
,
7/1/32
,
Callable
7/1/28
@
104.63
(d)
....................
199
210
WS
Escrow
LLC
,
7
.75
%
,
6/1/33
,
Callable
6/1/29
@
103.88
(d)
.......................
40
41
2,987
Health
Care
(9.0%):
Adapthealth
LLC
,
5
.13
%
,
3/1/30
,
Callable
7/12/26
@
101.28
(d)
.....................
357
346
CVS
Health
Corp.
,
7
.00
%
(
H15T5Y
+
289
bps
)
,
3/10/55
,
Callable
12/10/29
@
100
(c)
.......
158
164
DaVita,
Inc.
,
6
.75
%
,
7/15/33
,
Callable
7/15/28
@
103.38
(d)
........................
263
272
DENTSPLY
SIRONA,
Inc.
,
8
.37
%
(
H15T5Y
+
438
bps
)
,
9/12/55
,
Callable
6/12/30
@
100
(c)
..
71
71
Encompass
Health
Corp.
,
5
.88
%
,
6/1/34
,
Callable
6/1/29
@
102.94
(d)
.................
55
55
Gaia
Purchaser,
Inc.
,
7
.63
%
,
7/15/33
,
Callable
7/15/29
@
103.81
(d)
...................
105
106
Meridian
Arc
Holdco
LLC
,
6
.25
%
,
4/30/31
,
Callable
4/30/28
@
103.13
(d)
..............
135
135
Organon
&
Co./Organon
Foreign
Debt
Co-Issuer
BV
,
5
.13
%
,
4/30/31
,
Callable
8/1/26
@
102.56
(d)
........................................................
200
198
Prime
Healthcare
Services,
Inc.
,
9
.38
%
,
9/1/29
,
Callable
9/1/26
@
104.69
(d)
............
428
447
SCIL
IV
LLC/SCIL
USA
Holdings
LLC
,
9
.50
%
,
7/15/28
,
Callable
8/3/26
@
102.38
(d)
.....
153
180
Sotera
Health
Holdings
LLC
,
7
.38
%
,
6/1/31
,
Callable
6/1/27
@
103.69
(d)
..............
155
161
Tricida,
Inc.
5/15/27
(e)
(f)
......................................................
136
—
5/15/27
(e)
(g)
......................................................
136
—
U.S.
Acute
Care
Solutions
LLC
,
9
.75
%
,
5/15/29
,
Callable
8/1/26
@
104.88
(d)
...........
330
311
2,446
Industrials
(7.3%):
Allied
Universal
Holdco
LLC
,
7
.88
%
,
2/15/31
,
Callable
2/15/27
@
103.94
(d)
............
263
275
Camelot
Return
Merger
Sub,
Inc.
,
8
.75
%
,
8/1/28
,
Callable
8/1/26
@
100
(d)
.............
210
130
Carriage
Purchaser,
Inc.
,
7
.88
%
,
10/15/29
,
Callable
8/1/26
@
101.97
(d)
................
179
178
Core
&
Main
LP
,
6
.00
%
,
7/1/34
,
Callable
7/1/29
@
103
(d)
.........................
30
30
EquipmentShare.com,
Inc.
,
7
.13
%
,
7/1/34
,
Callable
7/1/29
@
103.56
(d)
................
120
118
Goat
Holdco
LLC
,
6
.75
%
,
2/1/32
,
Callable
2/1/28
@
103.38
(d)
......................
266
273
Herc
Holdings,
Inc.
7
.00
%
,
6/15/30
,
Callable
6/15/27
@
103.5
(d)
...............................
30
31
5
.75
%
,
3/15/31
,
Callable
3/15/28
@
102.88
(d)
..............................
20
20
7
.25
%
,
6/15/33
,
Callable
6/15/28
@
103.63
(d)
..............................
155
162
6
.00
%
,
3/15/34
,
Callable
3/15/29
@
103
(d)
................................
20
20
OneSky
Flight
LLC
,
8
.88
%
,
12/15/29
,
Callable
12/15/26
@
104.44
(d)
.................
150
159
Qxo
Building
Products,
Inc.
6
.50
%
,
7/15/31
,
Callable
7/15/28
@
103.25
(d)
..............................
20
20
6
.88
%
,
7/15/34
,
Callable
7/15/29
@
103.44
(d)
..............................
20
21
The
ADT
Security
Corp.
,
5
.88
%
,
10/15/33
,
Callable
10/15/32
@
100
(d)
................
166
163
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
High
Yield
VCT
Portfolio
5
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
June
30,
2026
See
notes
to
financial
statements.
Security
Description
Principal
Amount
(000)
a
Value
(000)
Trinity
Industries,
Inc.
,
7
.75
%
,
7/15/28
,
Callable
7/12/26
@
103.88
(d)
.................
$
274
$
280
United
Airlines
Holdings,
Inc.
,
5
.38
%
,
3/1/31
,
Callable
9/1/30
@
100
..................
110
109
1,989
Information
Technology
(2.1%):
Core
Scientific
Finance
I
LLC
,
7
.75
%
,
5/15/31
,
Callable
5/15/28
@
103.88
(d)
...........
133
135
CoreWeave,
Inc.
,
9
.00
%
,
2/1/31
,
Callable
2/1/28
@
104.5
(d)
........................
136
134
Edged
Compute
LLC
,
7
.50
%
,
4/30/31
,
Callable
4/30/28
@
103.75
(d)
..................
96
94
NCR
Voyix
Corp.
,
5
.00
%
,
10/1/28
,
Callable
8/1/26
@
100
(d)
.......................
86
84
Oracle
Corp.
6
.70
%
,
2/4/56
,
Callable
8/4/55
@
100
....................................
90
85
6
.85
%
,
2/4/66
,
Callable
8/4/65
@
100
....................................
50
46
578
Materials
(4.7%):
ARC
Falcon
I,
Inc./Arclin
USA
LLC/New
Arclin
US
Holding
Corp.
,
9
.75
%
,
3/1/33
,
Callable
3/1/29
@
104.88
(d)
.................................................
295
284
Celanese
US
Holdings
LLC
,
7
.70
%
,
11/15/33
,
Callable
8/15/33
@
100
.................
124
132
Clearwater
Paper
Corp.
,
4
.75
%
,
8/15/28
,
Callable
7/17/26
@
100
(d)
..................
181
148
Cleveland
Cliffs,
Inc.
7
.50
%
,
9/15/31
,
Callable
3/15/28
@
103.75
(d)
..............................
30
30
7
.00
%
,
3/15/32
,
Callable
3/15/27
@
103.5
(d)
...............................
113
112
7
.38
%
,
5/1/33
,
Callable
5/1/28
@
103.69
(d)
................................
60
60
7
.63
%
,
1/15/34
,
Callable
1/15/29
@
103.81
(d)
..............................
60
60
Commercial
Metals
Co.
,
6
.00
%
,
12/15/35
,
Callable
12/15/30
@
103
(d)
................
100
100
Hybar
LLC
,
7
.38
%
,
7/1/34
,
Callable
7/1/29
@
103.69
(d)
...........................
10
10
Mativ
Holdings,
Inc.
,
8
.00
%
,
10/1/29
,
Callable
10/1/26
@
104
(d)
....................
136
135
Methanex
US
Operations,
Inc.
,
6
.25
%
,
3/15/32
,
Callable
9/15/31
@
100
(d)
.............
217
220
1,291
Real
Estate
(2.1%):
Beacon
Point
DC
LLC
,
6
.13
%
,
11/30/42
,
Callable
5/30/42
@
100
(d)
..................
70
71
Kennedy-Wilson,
Inc.
7
.00
%
,
6/1/31
,
Callable
6/1/28
@
103.5
(d)
.................................
50
51
7
.25
%
,
6/1/33
,
Callable
6/1/29
@
103.63
(d)
................................
50
51
Millrose
Properties,
Inc.
,
6
.25
%
,
9/15/32
,
Callable
9/15/28
@
103.13
(d)
................
138
139
PR
RNO
Property
Owner
1
LLC
,
6
.50
%
,
5/1/31
,
Callable
5/1/28
@
103.25
(d)
...........
155
155
Yondr
Jk
1
LLC
,
6
.88
%
,
6/30/31
,
Callable
6/30/28
@
103.44
(d)
.....................
100
100
567
Utilities
(5.8%):
Alpha
Generation
LLC
,
6
.25
%
,
1/15/34
,
Callable
10/15/28
@
103.13
(d)
................
277
273
Leeward
Renewable
Energy
Operations
LLC
,
4
.25
%
,
7/1/29
,
Callable
8/1/26
@
100
(d)
.....
179
171
Long
Ridge
Energy
LLC
,
8
.75
%
,
2/15/32
,
Callable
2/15/28
@
104.38
(d)
...............
181
191
NRG
Energy,
Inc.
5
.75
%
,
1/15/34
,
Callable
10/15/28
@
102.88
(d)
.............................
155
154
5
.88
%
,
5/15/34
,
Callable
5/15/29
@
102.94
(d)
..............................
90
90
6
.00
%
,
1/15/36
,
Callable
10/15/30
@
103
(d)
...............................
190
189
6
.13
%
,
5/15/36
,
Callable
5/15/31
@
103.06
(d)
..............................
112
112
Talen
Energy
Supply
LLC
6
.38
%
,
5/1/33
,
Callable
5/1/29
@
103.19
(d)
................................
90
90
6
.25
%
,
2/1/34
,
Callable
10/15/28
@
103.13
(d)
..............................
90
89
6
.50
%
,
2/1/36
,
Callable
10/15/30
@
103.25
(d)
..............................
90
91
The
AES
Corp.
,
6
.95
%
(
H15T5Y
+
289
bps
)
,
7/15/55
,
Callable
4/15/30
@
100
(c)
..........
142
140
1,590
Total
Corporate
Bonds
(Cost
$19,531)
a
a
a
19,483
Yankee
Dollars
(15.9%)
Communication
Services
(1.0%):
Altice
France
SA
,
6
.50
%
,
4/15/32
,
Callable
10/1/26
@
101
(d)
.......................
100
97
VZ
Secured
Financing
BV
,
5
.00
%
,
1/15/32
,
Callable
1/15/27
@
102.5
(d)
...............
200
175
272
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
High
Yield
VCT
Portfolio
6
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
June
30,
2026
See
notes
to
financial
statements.
Security
Description
Principal
Amount
(000)
a
Value
(000)
Consumer
Discretionary
(1.7%):
Brightstar
Lottery
PLC/Brightstar
Global
Solutions
Corp.
,
5
.75
%
,
1/15/33
,
Callable
12/15/28
@
102.88
(d)
......................................................
$
270
$
265
MGM
China
Holdings
Ltd.
,
6
.25
%
,
5/15/33
,
Callable
5/15/29
@
103.13
(d)
.............
200
195
460
Energy
(1.8%):
Borr
IHC
Ltd./Borr
Finance
LLC
,
9
.00
%
,
1/15/34
,
Callable
7/15/29
@
104.5
(d)
..........
300
290
Transocean
International
Ltd.
8
.25
%
,
5/15/29
,
Callable
7/12/26
@
104.13
(d)
..............................
50
52
8
.75
%
,
2/15/30
,
Callable
8/1/26
@
104.38
(d)
...............................
53
55
8
.50
%
,
5/15/31
,
Callable
5/15/27
@
104.25
(d)
..............................
50
52
7
.88
%
,
10/15/32
,
Callable
10/15/28
@
103.94
(d)
............................
35
36
485
Financials
(1.7%):
Efesto
Bidco
SpA
Efesto
US
LLC
,
7
.50
%
,
2/15/32
,
Callable
2/15/28
@
103.75
(d)
.........
200
200
Global
Aircraft
Leasing
Co.
Ltd.
,
8
.75
%
,
9/1/27
,
Callable
8/1/26
@
104.38
(d)
...........
266
270
470
Health
Care
(0.7%):
1261229
BC
Ltd.
,
10
.00
%
,
4/15/32
,
Callable
4/15/28
@
105
(d)
......................
200
203
Industrials
(3.7%):
Czechoslovak
Group
AS
,
6
.50
%
,
1/10/31
,
Callable
7/10/27
@
103.25
.................
200
203
Danaos
Corp.
,
6
.88
%
,
10/15/32
,
Callable
10/15/28
@
103.44
(d)
.....................
227
235
Garda
World
Security
Corp.
7
.75
%
,
2/15/28
,
Callable
8/1/26
@
101.94
(d)
...............................
80
81
6
.50
%
,
1/15/31
,
Callable
11/15/27
@
103.25
(d)
.............................
85
86
8
.38
%
,
11/15/32
,
Callable
11/15/27
@
104.19
(d)
............................
79
81
GFL
Environmental,
Inc.
,
4
.38
%
,
8/15/29
,
Callable
8/1/26
@
101.09
(d)
................
198
192
Grupo
Aeromexico
SAB
de
CV
,
8
.63
%
,
11/15/31
,
Callable
11/15/27
@
104.31
(d)
.........
125
128
1,006
Materials
(5.3%):
First
Quantum
Minerals
Ltd.
8
.63
%
,
6/1/31
,
Callable
7/12/26
@
104.31
(d)
...............................
310
323
6
.38
%
,
2/15/36
,
Callable
2/15/31
@
103.19
(d)
..............................
200
196
IAMGOLD
Corp.
,
5
.75
%
,
10/15/28
,
Callable
8/1/26
@
101.44
(d)
....................
152
152
Maxam
Prill
SARL
,
7
.75
%
,
7/15/30
,
Callable
7/2/27
@
103.88
(d)
....................
205
211
OI
European
Group
BV
,
4
.75
%
,
2/15/30
,
Callable
8/1/26
@
101.19
(d)
.................
143
136
Taseko
Mines
Ltd.
8
.25
%
,
5/1/30
,
Callable
11/1/26
@
104.13
(d)
...............................
306
319
8
.25
%
,
5/1/30
,
Callable
11/1/26
@
104.13
.................................
100
104
1,441
Total
Yankee
Dollars
(Cost
$4,277)
a
a
a
4,337
Shares
Affiliated
Mutual
Funds
(3.4%)
Victory
Pioneer
ILS
Interval
Fund
...........................................
88,418
930
Total
Affiliated
Mutual
Funds
(Cost
$885)
a
a
a
930
Short-Term
Investments
(3.3%)
Principal
Amount
(000)
a
a
a
a
U.S.
Treasury
Obligations
(3.3%):
U.S.
Treasury
Bills
,
3
.49
%
,
7/28/26
(h)
........................................
900
898
Total
Short-Term
Investments
(Cost
$898)
a
a
a
898
Total
Investments
(Cost
$26,258)
—
96.9%
26,398
Other
assets
in
excess
of
liabilities
—  3.1%
856
NET
ASSETS
-
100.00%
$
27,254
At
June
30,
2026,
the
Fund's
investments
in
foreign
securities
were
16.9%
of
net
assets.
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
High
Yield
VCT
Portfolio
7
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
June
30,
2026
See
notes
to
financial
statements.
(a)
Non-income
producing
security.
(b)
Amount
represents
less
than
0.05%
of
net
assets.
(c)
Variable
or
Floating-Rate
Security.
Rate
disclosed
is
as
of
June
30,
2026.
(d)
Rule
144A
security
or
other
security
that
is
restricted
as
to
resale
to
institutional
investors.
As
of
June
30,
2026,
the
fair
value
of
these
securities
was
$22,115
(thousands)
and
amounted
to
81.1%
of
net
assets.
(e)
This
security
is
classified
as
Level
3
within
the
fair
value
hierarchy
based
on
significant
unobservable
inputs.
(See
Note
2
in
the
Notes
to
Financial
Statements)
(f)
Currently
the
issuer
is
in
default
with
respect
to
interest
and/or
principal
payments.
(g)
Zero-coupon
bond.
(h)
Rate
represents
the
effective
yield
at
June
30,
2026.
bps
—
Basis
points
H15T5Y
—
5
Year
Treasury
Constant
Maturity
Rate,
rate
disclosed
as
of
June
30,
2026.
LLC
—
Limited
Liability
Company
LP
—
Limited
Partnership
PLC
—
Public
Limited
Company
SOFR
—
Secured
Overnight
Financing
Rate
SOFR01M
—
1
Month
SOFR,
rate
disclosed
as
of
June
30,
2026.
Forward
Currency
Contracts
At
June
30,
2026,
the
Fund's
open
forward
currency
contracts
were
as
follows:
Currency
Purchased
In
Exchange
for
(000)
Currency
Sold
Deliver
(000)
Counterparty
Settlement
Date
Net
Unrealized
Appreciation/
(Depreciation)
(000)
U.S.
Dollar
200
European
Euro
170
State
Street
7/24/26
$
6
Total
Net
Forward
Currency
Contracts
$
6
Centrally
Cleared
Credit
Default
Swap
Agreements
-
Buy
Protection(a)
Underlying
Instruments
Fixed
Deal
Pay
Rate
Maturity
Date
Payment
Frequency
Notional
Amount
(000)(b)
Value
(000)
Premiums
Paid
(Received)
(000)
Unrealized
Appreciation
(Depreciation)
(000)
Markit
CDX
North
America
High
Yield
Index
Series
46
...........................
5.00%
6/20/31
Quarterly
$
544
$
(
144
)
$
(
97
)
$
(
47
)
$
(
144
)
$
(
97
)
$
(
47
)
(a)
When
a
credit
event
occurs
as
defined
under
the
terms
of
the
swap
agreement,
the
Fund
as
a
buyer
of
credit
protection
will
either
(i)
receive
from
the
seller
of
protection
an
amount
equal
to
the
par
value
of
the
defaulted
reference
entity
and
deliver
the
reference
entity
or
(ii)
receive
a
net
amount
equal
to
the
par
value
of
the
defaulted
reference
entity
less
its
recovery
value.  
(b)
The
notional
amount
is
the
maximum
amount
that
a
seller
of
credit
protection
would
be
obligated
to
pay
upon
occurrence
of
a
credit
event.
Statement
of
Assets
and
Liabilities
June
30,
2026
8
See
notes
to
financial
statements.
Victory
Variable
Insurance
Funds
II
(Amounts
in
Thousands,
Except
Per
Share
Amounts)
(Unaudited)
Victory
Pioneer
High
Yield
VCT
Portfolio
Assets:
Affiliated
investments,
at
value
(Cost
$885)
$
930
Unaffiliated
investments,
at
value
(Cost
$25,373)
25,468
Foreign
currency,
at
value
(Cost
$10)
10
Cash
288
Swap
agreements
collateral
84
Unrealized
appreciation
on
forward
currency
contracts
6
Receivables:
Dividends
and
interest
484
Capital
shares
issued
27
Investments
sold
269
From
Adviser
6
Variation
margin
on
open
swap
agreements
4
Prepaid
expenses
—
(a)
Total
Assets
27,576
Liabilities:
Payables:
Investments
purchased
270
Capital
shares
redeemed
—
(a)
Accrued
expenses
and
other
payables:
Investment
advisory
fees
15
12b-1
fees
—
(a)
Other
accrued
expenses
37
Total
Liabilities
322
Commitments
and
contingencies
(Note
4
)
Net
Assets:
Capital
30,410
Total
accumulated
earnings
(loss)
(
3,156
)
Net
Assets
$
27,254
Net
Assets:
Class
I
$
23,960
Class
II
3,294
Total
$
27,254
Shares
(unlimited
number
of
shares
authorized
with
a
par
value
of
$0.001
per
share):
Class
I
2,783
Class
II
388
Total
3,171
Net
asset
value,
offering
and
redemption
price
per
share:(b)
Class
I
$
8.61
Class
II
8.49
(a)
Rounds
to
less
than
$1
thousand.
(b)
Per
share
amount
may
not
recalculate
due
to
rounding
of
net
assets
and/or
shares
outstanding.
Statement
of
Operations
For
the
Six
Months
Ended
June
30,
2026
9
See
notes
to
financial
statements.
Victory
Variable
Insurance
Funds
II
(Amounts
in
Thousands)
(Unaudited)
Victory
Pioneer
High
Yield
VCT
Portfolio
Investment
Income:
Dividends
$
3‌
Interest
926‌
Total
Income
929‌
Expenses:
Investment
advisory
fees
89‌
Administration
fees
6‌
Sub-Administration
fees
6‌
12b-1
fees
—
Class
II
4‌
Custodian
fees
1‌
Trustees'
fees
3‌
Legal
and
audit
fees
28‌
Other
expenses
7‌
Total
Expenses
144‌
Less
fees
paid
indirectly
—‌
(a)
Expenses
waived/reimbursed
by
Adviser
(
17‌
)
Net
Expenses
127‌
Net
Investment
Income
(Loss)
802‌
Realized/Unrealized
Gains
(Losses)
from
Investments:
Net
realized
gains
(losses)
from
unaffiliated
investment
securities
and
foreign
currency
transactions
138‌
Net
realized
gains
(losses)
from
forward
foreign
currency
exchange
contracts
1‌
Net
realized
gains
(losses)
from
swap
agreements
7‌
Net
change
in
unrealized
appreciation/depreciation
on
affiliated
investment
securities
76‌
Net
change
in
unrealized
appreciation/depreciation
on
unaffiliated
investment
securities
and
foreign
currency
translations
(
417‌
)
Net
change
in
unrealized
appreciation/depreciation
on
forward
foreign
currency
exchange
contracts
8‌
Net
change
in
unrealized
appreciation/depreciation
on
swap
agreements
(
35‌
)
Net
realized/unrealized
gains
(losses)
on
investments
(
222‌
)
Change
in
net
assets
resulting
from
operations
$
580‌
(a)
Rounds
to
less
than
$1
thousand.
10
(Amounts
in
Thousands)
Victory
Variable
Insurance
Funds
II
Statements
of
Changes
in
Net
Assets
See
notes
to
financial
statements.
Victory
Pioneer
High
Yield
VCT
Portfolio
Six
Months
Ended
June
30,
2026
(Unaudited)
Year
Ended
December
31,
2025*
From
Investment
Activities:
Operations:
Net
Investment
Income
(Loss)
$
802‌
$
1,771‌
Net
realized
gains
(losses)
146‌
(
359‌
)
Net
change
in
unrealized
appreciation/depreciation
(
368‌
)
741‌
Change
in
net
assets
resulting
from
operations
580‌
2,153‌
Distributions
to
Shareholders:
Class
I
(
708‌
)
(
1,424‌
)
Class
II
(
98‌
)
(
244‌
)
Change
in
net
assets
resulting
from
distributions
to
shareholders
(
806‌
)
(
1,668‌
)
Change
in
net
assets
resulting
from
capital
transactions
(
872‌
)
(
1,161‌
)
Change
in
net
assets
(
1,098‌
)
(
676‌
)
Net
Assets:
Beginning
of
period
28,352‌
29,028‌
End
of
period
$
27,254‌
$
28,352‌
*
Pioneer
High
Yield
VCT
Portfolio
(the
“Predecessor
Fund”)
reorganized
with
the
Fund
effective
April
1,
2025
(the
“Reorganization”).
The
Predecessor
Fund
is
the
accounting
survivor
of
the
Reorganization
and
shareholders
holding
Class
I
and
Class
II
shares
of
the
Predecessor
Fund
received
Class
I
and
Class
II
shares
of
the
Fund,
respectively.
11
(Amounts
in
Thousands)
Victory
Variable
Insurance
Funds
II
Statements
of
Changes
in
Net
Assets
(continued)
See
notes
to
financial
statements.
Victory
Pioneer
High
Yield
VCT
Portfolio
Six
Months
Ended
June
30,
2026
(Unaudited)
Year
Ended
December
31,
2025*
Capital
Transactions:
Class
I
Proceeds
from
shares
issued
$
914‌
$
3,741‌
Distributions
reinvested
708‌
1,424‌
Cost
of
shares
redeemed
(
2,051‌
)
(
4,623‌
)
Total
Class
I
$
(
429‌
)
$
542‌
Class
II
Proceeds
from
shares
issued
$
2,487‌
$
5,211‌
Distributions
reinvested
96‌
242‌
Cost
of
shares
redeemed
(
3,026‌
)
(
7,157‌
)
Total
Class
II
$
(
443‌
)
$
(
1,704‌
)
Change
in
net
assets
resulting
from
capital
transactions
$
(
872‌
)
$
(
1,161‌
)
Share
Transactions:
Class
I
Issued
105‌
438‌
Reinvested
82‌
166‌
Redeemed
(
237‌
)
(
541‌
)
Total
Class
I
(
50‌
)
63‌
Class
II
Issued
294‌
616‌
Reinvested
11‌
29‌
Redeemed
(
356‌
)
(
850‌
)
Total
Class
II
(
51‌
)
(
205‌
)
Change
in
Shares
(
101‌
)
(
142‌
)
*
Pioneer
High
Yield
VCT
Portfolio
(the
“Predecessor
Fund”)
reorganized
with
the
Fund
effective
April
1,
2025
(the
“Reorganization”).
The
Predecessor
Fund
is
the
accounting
survivor
of
the
Reorganization
and
shareholders
holding
Class
I
and
Class
II
shares
of
the
Predecessor
Fund
received
Class
I
and
Class
II
shares
of
the
Fund,
respectively.
Victory
Variable
Insurance
Funds
II
Financial
Highlights
For
a
Share
Outstanding
Throughout
Each
Period
12
See
notes
to
financial
statements.
NOTE:
The
above
financial
highlights
do
not
reflect
the
deduction
of
non-fund
expenses
associated
with
variable
insurance
products,
such
as
mortality
and
expense
risk
charges,
separate
account
charges,
and
sales
charges.
Victory
Pioneer
High
Yield
VCT
Portfolio
Class
I*
Six
Months
Ended
June
30,
2026
(Unaudited)
Year
Ended
December
31,
2025
Year
Ended
December
31,
2024
Year
Ended
December
31,
2023
Year
Ended
December
31,
2022
Year
Ended
December
31,
2021
Net
Asset
Value,
Beginning
of
Period
$8.68
$8.52
$8.30
$7.86
$9.34
$9.29
Investment
Activities:
Net
investment
income
(loss)(a)
0.25
0.55
0.54
0.51
0.45
0.43
Net
realized
and
unrealized
gains
(losses)
(0.07)
0.12
0.17
0.38
(1.50)
0.10
Total
from
Investment
Activities
0.18
0.67
0.71
0.89
(1.05)
0.53
Distributions
to
Shareholders
from:
Net
investment
income
(0.25)
(0.51)
(0.49)
(0.45)
(0.42)
(0.48)
Return
of
capital
—
—
—
—
(0.01)
—
Total
Distributions
(0.25)
(0.51)
(0.49)
(0.45)
(0.43)
(0.48)
Net
Asset
Value,
End
of
Period
$8.61
$8.68
$8.52
$8.30
$7.86
$9.34
Total
Return(b)(c)
2.15%
8.16%
8.71%
11.63%(d)
(11.43)%
5.82%
Ratios
to
Average
Net
Assets:
Net
Expenses(e)(f)
0.90%(g)
0.90%
0.90%
0.90%
0.90%
0.90%
Net
Investment
Income
(Loss)(e)
5.89%
6.39%
6.39%
6.38%
5.37%
4.60%
Gross
Expenses(e)(f)
1.02%(g)
1.01%
1.05%
1.30%
1.13%
1.12%
Supplemental
Data:
Net
Assets
at
end
of
period
(000's)
$23,960
$24,592
$23,615
$21,472
$21,048
$28,234
Portfolio
Turnover(b)(h)
27%
63%
53%
40%
31%
99%
*
Pioneer
High
Yield
VCT
Portfolio
(the
“Predecessor
Fund”)
reorganized
with
the
Fund
effective
April
1,
2025
(the
“Reorganization”).
The
Predecessor
Fund
is
the
accounting
survivor
of
the
Reorganization
and
shareholders
holding
Class
I
and
Class
II
shares
of
the
Predecessor
Fund
received
Class
I
and
Class
II
shares
of
the
Fund,
respectively.
(a)
Per
share
net
investment
income
(loss)
has
been
calculated
using
the
average
daily
shares
method.
(b)
Not
annualized
for
periods
less
than
one
year.
(c)
Assumes
reinvestment
of
all
net
investment
income
and
realized
capital
gain
distributions,
if
any,
during
the
period.
Includes
adjustments
in
accordance
with
U.S.
Generally
Accepted
Accounting
Principles
and
could
differ
from
the
reported
return.
(d)
For
the
year
ended
December
31,
2023,
the
Fund’s
total
return
includes
a
reimbursement
by
the
Adviser.
The
impact
on
Class
I’s
total
return
was
less
than
0.005%.
(e)
Annualized
for
periods
less
than
one
year.
(f)
Does
not
include
acquired
fund
fees
and
expenses,
if
any.
(g)
Reflects
total
annual
operating
expenses
before
reductions
of
any
expenses
paid
indirectly.
The
Fund's
expenses
paid
indirectly
decreased
the
expense
ratios
by
less
than
0.01%.
(h)
Portfolio
turnover
is
calculated
on
the
basis
of
the
Fund
as
a
whole
without
distinguishing
between
the
classes
of
shares.
13
Victory
Variable
Insurance
Funds
II
For
a
Share
Outstanding
Throughout
Each
Period
Financial
Highlights
—
continued
See
notes
to
financial
statements.
NOTE:
The
above
financial
highlights
do
not
reflect
the
deduction
of
non-fund
expenses
associated
with
variable
insurance
products,
such
as
mortality
and
expense
risk
charges,
separate
account
charges,
and
sales
charges.
Victory
Pioneer
High
Yield
VCT
Portfolio
Class
II*
Six
Months
Ended
June
30,
2026
(Unaudited)
Year
Ended
December
31,
2025
Year
Ended
December
31,
2024
Year
Ended
December
31,
2023
Year
Ended
December
31,
2022
Year
Ended
December
31,
2021
Net
Asset
Value,
Beginning
of
Period
$8.56
$8.40
$8.18
$7.75
$9.21
$9.16
Investment
Activities:
Net
investment
income
(loss)(a)
0.24
0.51
0.51
0.49
0.42
0.40
Net
realized
and
unrealized
gains
(losses)
(0.07)
0.14
0.17
0.36
(1.48)
0.10
Total
from
Investment
Activities
0.17
0.65
0.68
0.85
(1.06)
0.50
Distributions
to
Shareholders
from:
Net
investment
income
(0.24)
(0.49)
(0.46)
(0.42)
(0.39)
(0.45)
Return
of
capital
—
—
—
—
(0.01)
—
Total
Distributions
(0.24)
(0.49)
(0.46)
(0.42)
(0.40)
(0.45)
Net
Asset
Value,
End
of
Period
$8.49
$8.56
$8.40
$8.18
$7.75
$9.21
Total
Return(b)(c)
2.01%
7.92%
8.48%
11.29%(d)
(11.66)%
5.56%
Ratios
to
Average
Net
Assets:
Net
Expenses(e)(f)
1.15%(g)
1.15%
1.15%
1.15%
1.15%
1.15%
Net
Investment
Income
(Loss)(e)
5.71%
6.08%
6.14%
6.18%
5.06%
4.29%
Gross
Expenses(e)(f)
1.28%(g)
1.27%
1.30%
1.55%
1.38%
1.37%
Supplemental
Data:
Net
Assets
at
end
of
period
(000's)
$3,294
$3,759
$5,412
$6,767
$6,384
$15,161
Portfolio
Turnover(b)(h)
27%
63%
53%
40%
31%
99%
*
Pioneer
High
Yield
VCT
Portfolio
(the
“Predecessor
Fund”)
reorganized
with
the
Fund
effective
April
1,
2025
(the
“Reorganization”).
The
Predecessor
Fund
is
the
accounting
survivor
of
the
Reorganization
and
shareholders
holding
Class
I
and
Class
II
shares
of
the
Predecessor
Fund
received
Class
I
and
Class
II
shares
of
the
Fund,
respectively.
(a)
Per
share
net
investment
income
(loss)
has
been
calculated
using
the
average
daily
shares
method.
(b)
Not
annualized
for
periods
less
than
one
year.
(c)
Assumes
reinvestment
of
all
net
investment
income
and
realized
capital
gain
distributions,
if
any,
during
the
period.
Includes
adjustments
in
accordance
with
U.S.
Generally
Accepted
Accounting
Principles
and
could
differ
from
the
reported
return.
(d)
For
the
year
ended
December
31,
2023,
the
Fund’s
total
return
includes
a
reimbursement
by
the
Adviser.
The
impact
on
Class
II’s
total
return
was
less
than
0.005%.
(e)
Annualized
for
periods
less
than
one
year.
(f)
Does
not
include
acquired
fund
fees
and
expenses,
if
any.
(g)
Reflects
total
annual
operating
expenses
before
reductions
of
any
expenses
paid
indirectly.
The
Fund's
expenses
paid
indirectly
decreased
the
expense
ratios
by
less
than
0.01%.
(h)
Portfolio
turnover
is
calculated
on
the
basis
of
the
Fund
as
a
whole
without
distinguishing
between
the
classes
of
shares.
Notes
to
Financial
Statements
June
30,
2026
Victory
Variable
Insurance
Funds
II
14
(Unaudited)
1.
Organization:
Victory
Variable
Insurance Funds
II
(the
“Trust”)
is
organized
as
a
Delaware
statutory
trust
and
is
registered
under
the Investment
Company
Act
of
1940,
as
amended
(the
“1940
Act”),
as
an
open-end
investment
company.
The
Trust
is
comprised
of seven funds
and
is
authorized
to
issue
an
unlimited
number
of
shares,
which
are
units
of
beneficial
interest
with a
par
value
of
$0.001
per
share.
The
Fund's
shares
are
only
available
for
purchase
by
insurance
companies
for
funding
variable
annuity
and
variable
life
insurance
contracts
or
by
qualified
pension
and
retirement
plans.
The
accompanying
financial
statements
are
those
of
the
following
fund
(the
"Fund").
The
fund
is
classified
as
diversified
under
the
1940
Act.
Each
class
of
shares
of the
Fund
has
substantially
identical
rights
and
privileges
except
with
respect
to
sales
charges,
fees
paid
under
distribution
plans,
expenses
allocable
exclusively
to
each
class
of
shares,
voting
rights
on
matters
solely
affecting
a
single
class
of
shares,
and
the
exchange
privilege
of
each
class
of
shares.
 Victory
Capital
Management
Inc.
(“VCM”
or
the
“Adviser”)
is
an
indirect
wholly
owned
subsidiary
of
Victory
Capital
Holdings,
Inc.,
a
publicly
traded
Delaware
corporation,
and
a
wholly
owned
direct
subsidiary
of
Victory
Capital
Operating,
LLC.
Under
the
Trust’s
organizational
documents,
its
officers
and
trustees
are
indemnified
against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Fund.
In
addition,
in
the
normal
course
of
business,
the
Fund
enters
into
contracts
with
its
vendors
and
others
that
provide
for
general
indemnifications.
The
Fund’s
maximum
exposure
under
these
arrangements
is
unknown,
as
this
would
involve
future
claims
that
may
be
made
against
the
Fund.
However,
based
on
experience,
the
Fund
expects
that
risk
of
loss
to
be
remote.
The Fund,
which
commenced
operations
on
April
1,
2025,
is
the
successor
to
the
Pioneer High
Yield
VCT
Portfolio
(the
“Predecessor
Fund”).
The
Predecessor Fund
transferred
all
of
the
net
assets
of
Class
I
and Class
II
shares
in
exchange
for
the
Fund’s
Class
I and
Class II
shares,
respectively,
on
April
1,
2025
pursuant
to
an
agreement
and
plan
of
reorganization
(the
“Reorganization”)
which
was
approved
by
the
shareholders
of
the
Predecessor Fund
on
March
27,
2025.
The
Reorganization
was
structured
so
that
the
transfer
of
assets
and
liabilities
did
not
result
in
federal
tax
liability
to
the
Predecessor
Fund or
its
shareholders.
Shareholders
holding
Class
I
and
Class
II shares
of
the
Predecessor Fund
received
Class
I
and
Class II
shares
of
the
Fund,
respectively,
in
the
Reorganization.
The
Predecessor Fund
was
the
accounting
survivor
of
the
Reorganization.
Accordingly,
the
Predecessor
Fund’s
performance
and
financial
history
have
become
the
performance
and
financial
history
of
the
Fund.
The
Fund’s
investment
objective
is
to maximize
total
return
through
a
combination
of
income
and
capital
appreciation.
Effective
April
1,
2025, VCM
serves
as
the
Fund’s
investment
adviser,
succeeding
Amundi
Asset
Management
US,
Inc.
(“Amundi
US”).
On
the
same
date,
Victory
Capital
Services,
Inc.
(the
“Distributor”),
an
affiliate
of
the
Adviser,
became
the
Distributor
for
the
Fund's
shares,
succeeding
Amundi
Distributor
US,
Inc.
The
Distributor
receives
no
fee
or
other
compensation
for
these
services
(See
Note
4).
On
September
30,
2025,
the
Trust’s
Board
of
Trustees
(the
“Board”),
upon
the
recommendation
of
the
Adviser,
approved
a
change
in
the
Fund's
custodian,
sub-administrator,
sub-fund
accountant,
and
transfer
agent.
Effective
as
of
February
9,
2026, Citibank,
N.A.
serves
as
the
custodian
of
the
Fund,
Citi
Fund
Services
Ohio,
Inc.
serves
as
sub-administrator
and
sub-fund
accountant
of
the
Fund
and
FIS
Investor
Services
LLC
serves
as
transfer
agent
of
the
Fund.
2.
Significant
Accounting
Policies:
The
following
is
a
summary
of
significant
accounting
policies
followed
by
the Fund
in
the
preparation
of
its
financial
statements.
The
policies
are
in
conformity
with
U.S.
Generally
Accepted
Accounting
Principles
(“GAAP”).
The
preparation
of
financial
statements
in
accordance
with
GAAP
requires
the
Adviser
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
and
disclosure
of
contingent
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
reported
amounts
of
income
and
expenses
for
the
period.
Actual
results
could
differ
from
those
estimates.
The
Fund
follows
the
specialized
accounting
and
reporting
requirements
under
GAAP
that
are
applicable
to
investment
companies
under
Accounting
Standards
Codification
Topic 946.
Investment
Valuation: 
The
Fund
records
investments
at
fair
value.
Fair
value
is
defined
as
the
price
that
would
be
received
to sell
an asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
at
the
measurement
date.
The
valuation
techniques
described
below
maximize
the
use
of
observable
inputs
and
minimize
the
use
of
unobservable
inputs
in
determining
fair
value.
The
inputs
used
for
valuing
the
Fund’s
investments
are
summarized
in
the
three
broad
levels
listed
below:
Level
1
—
quoted
prices
(unadjusted)
in
active
markets
for
identical
securities
Level
2
—
other
significant
observable
inputs
(including
quoted
prices
for
similar
securities,
interest
rates,
or
credit
spreads,
applicable
to
those
securities,
etc.)
Level
3
—
significant
unobservable
inputs
(including
the
Adviser’s
assumptions
in
determining
the
fair
value
of
investments)
Changes
in
valuation
techniques
may
result
in
transfers
in
or
out
of
an
assigned
level
within
the
disclosure
hierarchy.
The
inputs
or
methodologies
used
for
valuation
techniques
are
not
necessarily
an
indication
of
the
risks
associated
with
entering
into
those
investments.
The Adviser,
appointed
as
the
valuation
designee
by the
Trust's
Board
of
Trustees
(the
“Board”), has
established
the
Pricing
Committee
(the
“Committee”),
and
subject
to
Board
oversight,
the
Committee
administers
and
oversees
the
Fund’s
valuation
policies
and
procedures,
which
are
approved
by
the
Board.
Fund
(Legal
Name)
Fund
(Short
Name)
Investment
Share
Classes
Offered
Victory
Pioneer
High
Yield
VCT
Portfolio
High
Yield
VCT
Portfolio
Class
I
and
Class
II
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
15
(Unaudited)
Portfolio
securities
listed
or
traded
on
securities
exchanges,
including
Exchange-Traded
Funds
(“ETFs”),
and
American
Depositary
Receipts,
are
valued
at
the
closing
price
on
the
exchange
or
system
where
the
security
is
principally
traded,
if
available,
or
at
the
Nasdaq
Official
Closing
Price.
If
there
have
been
no
sales
for
that
day
on
the
exchange
or
system,
then
a
security
is
valued
at
the
last
available
bid
quotation
on
the
exchange
or
system
where
the
security
is
principally
traded.
In
each
of
these
situations,
valuations
are
typically
categorized
as
Level
1
in
the
fair
value
hierarchy.
Investments
in
open-end
investment
companies,
other
than
ETFs, are
valued
at their
net
asset
value
(“NAV”).
These
valuations
are
typically
categorized
as
Level
1 in
the
fair
value
hierarchy.
Debt
securities
are
valued
each
business
day
by
a
pricing
service
approved
by
the
valuation
designee
and
subject
to
the
oversight
of
the
Board.
The
pricing
service
uses
the
evaluated
bid
or market
quotes to
value
securities.
Debt
obligations
maturing
within
60
days
may
be
valued
at
amortized
cost,
provided
that
the
amortized
cost
represents
the
fair
value
of
such
securities.
These
valuations
are
typically
categorized
as
Level
2
in
the
fair
value
hierarchy.
Loan
interests
are
valued
at
the
mean
between
the
last
available
bid
and
asked
prices
from
one
or
more
brokers
or
dealers
as
obtained
from
an
independent
third
party
pricing
service.
If
price
information
is
not
available,
or
if
the
price
information
is
deemed
to
be
unreliable,
price
information
will
be
obtained
from
an
alternative
loan
interest
pricing
service.
If
no
reliable
price
quotes
are
available
from
either
the
primary
or
alternative
pricing
service,
broker
quotes
will
be
solicited.
These
valuations
are
typically
categorized
as
Level
2
in
the
fair
value
hierarchy.
Forward
foreign
currency
exchange
contracts
are
valued
daily
using
the
foreign
exchange
rate
or,
for
longer
term
forward
contract
positions,
the
spot
currency
rate
and
the
forward
points
on
a
daily
basis,
in
each
case
provided
by
a
third
party
pricing
service.
Contracts
whose
forward
settlement
date
falls
between
two
quoted
days
are
valued
by
interpolation.
Swap
agreements
are
valued
at
the
mean
between
the
current
bid
and
ask
prices.
To
the
extent
this
model
is
utilized,
these
valuations
are
considered
as
Level
2
in
the
fair
value
hierarchy.
In
the
event
that
price
quotations
or
valuations
are
not
readily
available,
investments
are
valued
at
fair
value
in
accordance
with
procedures
established
by
and
under
the
general
supervision
and
responsibility
of
the
Board.
These
valuations
are
typically
categorized
as
Level
2
or
Level
3
in
the
fair
value
hierarchy,
based
on
the
observability
of
inputs
used
to
determine
the
fair
value.
The
effect
of
fair
value
pricing
is
that
securities
may
not
be
priced
on
the
basis
of
quotations
from
the
primary
market
in
which
they
are
traded
and
the
actual
price
realized
from
the
sale
of
a
security
may
differ
materially
from
the
fair
value
price.
Valuing
these
securities
at
fair
value
is
intended
to
cause
the
Fund’s
NAV to
be
more
reliable
than
it
otherwise
would
be.
The
principal
exchanges
and
markets
for
non-U.S.
equity
securities
have
closing
times
prior
to
the
close
of
the
New
York
Stock
Exchange.
However,
the
value
of
these
securities
may
be
influenced
by
changes
in
global
markets
occurring
after
the
closing
times
of
the
local
exchanges
and
markets
up
to
the
time
the
Fund
determines
its
net
asset
value.
Consequently,
the
Fund
uses
a
fair
value
model
developed
by
an
independent
pricing
service
to
value
non-U.S.
equity
securities.
On
a
daily
basis,
the
pricing
service
recommends
changes,
based
on
a
proprietary
model,
to
the
closing
market
prices
of
each
non-U.S.
security
held
by
the
Fund
to
reflect
the
security’s
fair
value
at
the
time
the
Fund
determines
its
net
asset
value.
These
recommendations
are
applied
in
accordance
with
the
Adviser’s
(the
valuation
designee’s)
valuation
procedures.
These
valuations
are
typically
categorized
as
Level
2
in
the
fair
value
hierarchy.
A
summary
of
the
valuations
as
of
June
30,
2026, based
upon
the
three
levels
defined
above,
is
included
in
the
table
below
while
the
breakdown,
by
category,
of
investments
is
disclosed
on
the
Schedule
of
Portfolio
Investments
(amounts
in
thousands):
As
of June
30,
2026,
there
were
no
significant
transfers
into/out
of
Level
3.
Investment
Companies:
Level
1
Level
2
Level
3
Total
High
Yield
VCT
Portfolio
Common
Stocks
...............................................
$
122
$
24
$
—
$
146
Senior
Secured
Loans
...........................................
—
604
—
604
Corporate
Bonds
..............................................
—
19,483
—(a)
19,483
Yankee
Dollars
...............................................
—
4,337
—
4,337
Affiliated
Mutual
Funds
.........................................
930
—
—
930
Short-Term
Investments
.........................................
—
898
—
898
Total
.......................................................
$
1,052
$
25,346
$
—(a)
$
26,398
Other
Financial
Investments:*
Assets:
Forward
Currency
Contracts
......................................
—
6
—
6
Liabilities:
Credit
Default
Swap
Agreement
...................................
—
(16)
—
(16)
Total
.......................................................
$
—
$
(10)
$
—
$
(10)
(a)
Zero
market
value
securities.
*
Swap
Agreements
and
Forward
Foreign
Currency
Exchange
Contracts
are
presented
at
the
unrealized
appreciation
(depreciation)
on
the
investment.
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
16
(Unaudited)
Open-End
Funds:
The
Fund
may
invest
in
portfolios
of
open-end
investment
companies.
These
investment
companies
value
securities
in
their
portfolios
for
which
market
quotations
are
readily
available
at
their
market
values
(generally
the
last
reported
sale
price)
and
all
other
securities
and
assets
at
their
fair
value
by
the
methods
established
by
the
board
of
directors
of
the
underlying
funds.
Below-Investment-Grade
Securities:
The
Fund
may
invest in
below-investment-grade
securities
(i.e.,
lower-quality,
“junk”
debt),
which
are
subject
to
various
risks.
Lower-quality
debt
is
considered
to
be
speculative
because
it
is
less
certain
that
the
issuer
will
be
able
to
pay
interest
or
repay
the
principal
than
in
the
case
of
investment-grade
debt.
These
securities
can
involve
a
substantially
greater
risk
of
default
than
higher-rated
securities,
and
their
values
can
decline
significantly
over
short
periods
of
time.
Lower-quality
debt
securities
tend
to
be
more
sensitive
to
adverse
news
about
their
issuers,
the
market
and
the
economy
in
general,
than
higher-quality
debt
securities.
The
market
for
these
securities
can
be
less
liquid,
especially
during
periods
of
recession
or
general
market
decline.
Securities
Purchased
on
a
Delayed-Delivery
or
When-Issued
Basis:
The
Fund
may
purchase
securities
on
a
delayed-delivery
or
when-issued
basis.
Delivery
and
payment
for
securities
that
have
been
purchased
by
the
Fund
on
a
delayed-delivery
or
when-issued
basis,
or
for
delayed
draws
on
loans
can
generally
take
place
within
35
days after
the
trade
date.
Securities
that
require
more
than
35
days
to
settle
are
considered
a
senior
security
and
subject
to
Rule
18f-4.
At
the
time
the
Fund
makes
the
commitment
to
purchase
a
security
on
a
delayed-delivery
or
when-issued
basis,
the
Fund
records
the
transaction
and
reflects
the
value
of
the
security
in
determining
NAV.
No
interest
accrues
to
the
Fund
until
the
transaction
settles
and
payment
takes
place. 
If
the
Fund
owns
delayed-
delivery
or
when-issued
securities,
these
values
are
included
in
Payables
for
Investments
purchased
on
the
accompanying
Statement
of
Assets
and
Liabilities.
Mortgage-
and
Asset-Backed
Securities:
The
values
of
some
mortgage-related
or
asset-backed
securities
may
be
particularly
sensitive
to
changes
in
prevailing
interest
rates.
Early
repayment
of
principal
on
some
mortgage-related
securities
may
expose
the
Fund
to
a
lower
rate
of
return
upon
reinvestment
of
principal.
The
values
of
mortgage-
and
asset-backed
securities
depend
in
part
on
the
credit
quality
and
adequacy
of
the
underlying
assets
or
collateral
and
may
fluctuate
in
response
to
the
market’s
perception
of
these
factors
as
well
as
current
and
future
repayment
rates.
Some
mortgage-backed
securities
are
backed
by
the
full
faith
and
credit
of
the
U.S.
government
(e.g.,
mortgage-backed
securities
issued
by
the
Government
National
Mortgage
Association,
commonly
known
as
“Ginnie
Mae”),
while
other
mortgage-backed
securities
(e.g.,
mortgage-backed
securities
issued
by
the
Federal
National
Mortgage
Association
and
the
Federal
Home
Loan
Mortgage
Corporation,
commonly
known
as
“Fannie
Mae”
and
“Freddie
Mac,”
respectively),
are
backed
only
by
the
credit
of
the
government
entity
issuing
them.
In
addition,
some
mortgage-backed
securities
are
issued
by
private
entities
and,
as
such,
are
not
guaranteed
by
the
U.S.
government
or
any
agency
or
instrumentality
of
the
U.S.
government.
Loans:
Floating
rate
loans
in
which
the
Fund
invests
are
primarily
“senior”
loans.
Senior
floating
rate
loans
typically
hold
a
senior
position
in
the
capital
structure
of
the
borrower,
are
typically
secured
by
specific
collateral,
and
have
a
claim
on
the
assets
and/or
stock
of
the
borrower
that
is
senior
to
that
held
by
subordinated
debtholders
and
stockholders
of
the
borrower.
While
these
protections
may
reduce
risk,
these
investments
still
present
significant
credit
risk.
A
significant
portion
of
the
Fund’s
floating
rate
investments
may
be
issued
in
connection
with
highly
leveraged
transactions
such
as
leveraged
buyouts,
leveraged
recapitalization
loans,
and
other
types
of
acquisition
financing.
Obligations
in
these
types
of
transactions
are
subject
to
greater
credit
risk
(including
default
and
bankruptcy)
than
many
other
investments
and
may
be,
or
become,
illiquid.
See
note
regarding
below-investment-grade
securities.
The
Fund
may
purchase
second
lien
loans
(secured
loans
with
a
claim
on
collateral
subordinate
to
a
senior
lender’s
claim
on
such
collateral),
fixed
rate
loans,
unsecured
loans,
and
other
debt
obligations.
Transactions
in
loans
often
settle
on
a
delayed
basis,
and
the
Fund
may
not
receive
the
proceeds
from
the
sale
of
a
loan
or
pay
for
a
loan
purchase
for
a
substantial
period
of
time
after
entering
into
the
transactions.
Securities
Lending:
Effective
May
8,
2026,
the
Fund,
through
a
Securities
Lending
Agreement
with
Citibank,
N.A.
(“Citibank”),
may
lend
its
securities
to
qualified
financial
institutions,
such
as
certain
broker-dealers
and
banks,
to
earn
additional
income,
net
of
income
retained
by
Citibank.
Borrowers
are
required
to
initially
secure
their
loans
for
collateral
in
the
amount
of
at
least
102%
of
the
value
of
U.S.
securities
loaned
or
at
least
105%
of
the
value
of
non-U.S.
securities
loaned,
marked-to-market
daily.
Any
collateral
shortfalls
associated
with
increases
in
the
valuation
of
the
securities
loaned
are
generally
cured
the
next
business
day.
The
collateral
can
be
received
in
the
form
of
cash
collateral
and/or
non-cash
collateral.
Non-
cash
collateral
can
include
U.S.
Government
Securities
and
other
securities
as
permitted
by
Securities
and
Exchange
Commission
(“SEC”)
guidelines.
The
cash
collateral
is
invested
in
short-term
instruments
or
cash
equivalents,
primarily
open-end
investment
companies,
as
noted
on
the
Fund’s
Schedule
of
Portfolio
Investments.
The
Fund
effectively
does
not
have
control
of
the
non-cash
collateral
and
therefore
it
is
not
disclosed
on
the
Fund’s
Schedule
of
Portfolio
Investments.
Collateral
requirements
are
determined
daily
based
on
the
value
of
the
Fund’s
securities
on
loan
as
of
the
end
of
the
prior
business
day.
During
the
time
portfolio
securities
are
on
loan,
the
borrower
will
pay
the
Fund
any
dividends
or
interest
paid
on
such
securities
plus
any
fee
negotiated
between
the
parties
to
the
lending
agreement.
The
Fund
also
earns
a
return
from
the
collateral.
The
Fund
pays
Citibank
various
fees
in
connection
with
the
investment
of
cash
collateral
and
fees
based
on
the
investment
income
received
from
securities
lending
activities.
Securities
lending
income
(net
of
these
fees)
is
disclosed
on
the
Statement
of
Operations.
Loans
are
terminable
upon
demand
and
the
borrower
must
return
the
loaned
securities
within
the
lesser
of
one
standard
settlement
period
or
five
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
17
(Unaudited)
business
days.
Although
risk
is
mitigated
by
the
collateral,
the
Fund
could
experience
a
delay
in
recovering
its
securities
and
possible
loss
of
income
or
value
if
the
borrower
fails
to
return
them.
In
addition,
there
is
a
risk
that
the
value
of
the
short-term
investments
will
be
less
than
the
amount
of
cash
collateral
required
to
be
returned
to
the
borrower.
The
Fund's
agreement
with
Citibank
does
not
include
master
netting
provisions.
Non-cash
collateral
received
by
the
Fund
may
not
be
sold
or
repledged,
except
to
satisfy
borrower
default.
As
of
June
30,
2026,
the
Fund
did
not
have
any
securities
on
loan.
Derivative
Instruments:
Foreign
Exchange
Currency
Contracts:
The
Fund
may
enter
into
foreign
exchange
currency
contracts
to
convert
U.S.
dollars
to
and
from
various
foreign
currencies.
A
foreign
exchange
currency
contract
is
an
obligation
by the
Fund
to
purchase
or
sell
a
specific
currency
at
a
future
date
at
a
price
(in
U.S.
dollars)
set
at
the
time
of
the
contract.
The
Fund
does
not
engage
in
“cross-currency”
foreign
exchange
contracts
(i.e.,
contracts
to
purchase
or
sell
one
foreign
currency
in
exchange
for
another
foreign
currency).
The
Fund’s
foreign
exchange
currency
contracts
might
be
considered
spot
contracts
(typically
a
contract
of
one
week
or
less)
or
forward
contracts
(typically
a
contract
term
over
one
week).
A
spot
contract
is
entered
into
for
purposes
of
hedging
against
foreign
currency
fluctuations
relating
to
a
specific
portfolio
transaction,
such
as
the
delay
between
a
security
transaction
trade
date
and
settlement
date.
Forward
contracts
are
entered
into
for
purposes
of
hedging
portfolio
holdings
or
concentrations
of
such
holdings. Each
foreign
exchange
currency
contract
is
adjusted
daily
by
the
prevailing
spot
or
forward
rate
of
the
underlying
currency,
and
any
appreciation
or
depreciation
is
recorded
for
financial
statement
purposes
as
unrealized
until
the
contract
settlement
date,
at
which
time
the
Fund
records
realized
gains
or
losses
equal
to
the
difference
between
the
value
of
a
contract
at
the
time
it
was
opened
and
the
value
at
the
time
it
was
closed.
The Fund
could
be
exposed
to
risk
if
a
counterparty
is
unable
to
meet
the
terms
of
a
foreign
exchange
currency
contract
or
if
the
value
of
the
foreign
currency
changes
unfavorably.
In
addition,
the
use
of
foreign
exchange
currency
contracts
does
not
eliminate
fluctuations
in
the
underlying
prices
of
the
securities.
The
Fund
enters
into
foreign
exchange
currency
contracts
solely
for
spot
or
forward
hedging
purposes,
and
not
for
speculative
purposes
(i.e.,
the
Fund
does
not
enter
into
such
contracts
solely
for
the
purpose
of
earning
foreign
currency
gains). As
of June
30,
2026,
the
Fund
had
open
forward
foreign
exchange
currency
contracts.
Credit
Derivatives:
The Fund
may
enter
into
credit
derivatives,
including
centrally
cleared
credit
default
swaps
on
individual
obligations
or
credit
indices.
The
Fund
may
use
these
investments
(i)
as
alternatives
to
direct
long
or
short
investment
in
a
particular
security
or
securities,
(ii)
to
adjust
the
Fund’s
asset
allocation
or
risk
exposure,
or
(iii)
for
hedging
purposes.
The
use
by
the
Fund
of
centrally
cleared
credit
default
swaps
may
have
the
effect
of
creating
a
short
position
in
a
security.
Credit
derivatives
can
create
investment
leverage
and
may
create
additional
investment
risks
that
may
subject
the
Fund
to
greater
volatility
than
investments
in
more
traditional
securities,
as
described
in
the
Fund’s
Statement
of
Additional
Information.
Centrally
cleared
credit
default
swap
(“CDS”)
agreements
on
credit
indices
involve
one
party
making
a
stream
of
payments
(referred
to
as
the
buyer
of
protection)
to
another
party
(the
seller
of
protection)
in
exchange
for
the
right
to
receive
a
specified
return
in
the
event
of
a
write-down,
principal
shortfall,
interest
shortfall
or
default
of
all
or
part
of
the
referenced
entities
comprising
the
credit
index.
A
credit
index
is
a
basket
of
credit
instruments
or
exposures
designed
to
be
representative
of
a
specific
sector
of
the
credit
market
as
a
whole.
These
indices
are
made
up
of
reference
credits
that
are
judged
by
a
poll
of
dealers
to
be
the
most
liquid
entities
in
the
CDS.
The
counterparty
risk
for
cleared
swap
agreements
is
generally
lower
than
uncleared
over-the-counter
swap
agreements
because
generally
a
clearing
organization
becomes
substituted
for
each
counterparty
to
a
centrally
cleared
swap
agreement
and,
in
effect,
guarantees
each
party’s
performance
under
the
contract
as
each
party
to
a
trade
looks
only
to
the
clearing
organization
for
performance
of
financial
obligations.
However,
there
can
be
no
assurance
that
the
clearing
organization,
or
its
members,
will
satisfy
its
obligations
to
the
Fund.
The
Fund
may
enter
into
CDS
agreements
either
as
a
buyer
or
seller.
The
Fund
may
buy
protection
under
a
CDS
to
attempt
to
mitigate
the
risk
of
default
or
credit
quality
deterioration
in
one
or
more
individual
holdings
or
in
a
segment
of
the
fixed
income
securities
market.
The
Fund
may
sell
protection
under
a
CDS
in
an
attempt
to
gain
exposure
to
an
underlying
issuer’s
credit
quality
characteristics
without
investing
directly
in
that
issuer.
For
swaps
entered
with
an
individual
counterparty,
the
Fund
bears
the
risk
of
loss
of
the
uncollateralized
amount
expected
to
be
received
under
a
CDS
agreement
in
the
event
of
the
default
or
bankruptcy
of
the
counterparty.
CDS
agreements
are
generally
valued
at
a
price
at
which
the
counterparty
to
such
agreement
would
terminate
the
agreement.
The
Fund
may
also
enter
into
centrally
cleared
swaps.
Upon
entering
into
a
cleared
CDS,
the
Fund
may
be
required
to
deposit
with
the
broker
an
amount
of
cash
or
cash
equivalents
in
the
range
of
approximately
3%
to
6%
of
the
notional
amount
for
CDS
on
high
yield
debt
issuers
(this
amount
is
subject
to
change
by
the
clearing
organization
that
clears
the
trade).
This
amount,
known
as
“initial
margin,”
is
in
the
nature
of
a
performance
bond
or
good
faith
deposit
on
the
CDS
and
is
returned
to
a
Fund
upon
termination
of
the
CDS,
assuming
all
contractual
obligations
have
been
satisfied.
Subsequent
payments,
known
as
“variation
margin,”
to
and
from
the
broker
will
be
made
daily
as
the
price
of
the
CDS
fluctuates,
making
the
long
and
short
positions
in
the
CDS
contract
more
or
less
valuable,
a
process
known
as
"marking-to-market."
The
premium
(discount)
payments
are
built
into
the
daily
price
of
the
CDS
and
thus
are
amortized
through
the
variation
margin.
The
variation
margin
payment
also
includes
the
daily
portion
of
the
periodic
payment
stream.
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
18
(Unaudited)
The
maximum
potential
amount
of
future
payments
(undiscounted)
that
the
Fund
as
a
seller
of
protection
could
be
required
to
make
under
a
CDS
agreement
equals
the
notional
amount
of
the
agreement.
Notional
amounts
of
each
individual
CDS
agreement
outstanding
as
of
period end
for
which
the
Fund
is
the
seller
of
protection
are
disclosed
on
the
Schedule
of
Portfolio
Investments.
These
potential
amounts
would
be
partially
offset
by
any
recovery
values
of
the
respective
referenced
obligations,
upfront
payments
received
upon
entering
into
the
agreement,
periodic
interest
payments,
or
net
amounts
received
from
the
settlement
of
buy
protection
CDS
agreements
entered
into
by
the
Fund
for
the
same
referenced
entity
or
entities.
The
collateral
held
by
the
Fund
is
reflected
on
the
Statements
of
Assets
and
Liabilities
under
Deposit
with
broker
for
swap
agreements.
Management
has
determined
that
no
offsetting
requirements
exist
as
a
result
of
their
conclusion
that
the
Fund is
not
subject
to
master
netting
agreements
for
swaps
contracts.
The Fund
entered
into
centrally
cleared
CDS
agreements
primarily
for
the
strategy
of
asset
allocation
and
risk
exposure
management
during
the
period.
Summary
of
Derivative
Instruments:
The
following
table
summarizes
the
fair
values
of
derivative
instruments
on
the
Statement
of
Assets
and
Liabilities,
categorized
by
risk
exposure,
as
of
June
30,
2026 (amounts
in
thousands):
*Includes
cumulative
appreciation
(depreciation)
of
swap
agreements
as
reported
on
the
Schedule
of
Portfolio
Investments.
Only
current
day’s
variation
margin
for
swap
agreements
is
reported
within
the
Statement
of
Assets
and
Liabilities.
The
following
table
presents the
effect
of
derivative
instruments
on
the
Statement
of
Operations,
categorized
by
risk
exposure,
for
the period
ended
June
30,
2026 (amounts
in
thousands):
All
open
derivative
positions
at
period end
are
reflected
on
the
Fund’s
Schedule
of
Portfolio
Investments.
The
underlying
face
value
of
open
derivative
positions
relative
to the
Fund’s
net
assets
at period
end
is
representative
of
the
notional
amount
of
open
positions
to
net
assets
throughout
the
period.
Average
Quarterly
Balances
of
Outstanding
Derivative
Financial
Instruments:
The
following
table
summarizes
the
volume
of
derivative
instruments
activity for
the
six
months
ended June
30,
2026,
categorized
by
derivative
instrument type
(amounts
in
thousands):
Investment
Transactions
and
Related
Income:
Investment
transactions
are
recorded
on
trade
date.
For
financial
reporting
purposes,
however,
investment
transactions
are
accounted
for
on
trade
date
or
the
last
business
day
of
the
reporting
period.
 Dividend
income
is
recorded
on
the
ex-dividend
date.
Non-cash
dividends
included
in
income,
if
any,
are
recorded
at
the
fair
value
of
the
securities
received.
Gains
or
losses
realized
on
sales
of
securities
are
recorded
on
the
Assets
Liabilities
Forward
Currency
Contracts
Swap
agreements*
Credit
Risk
Exposure:
–
47,000
High
Yield
VCT
Portfolio
................................................................
$
–
$
(47)
Foreign
Exchange
Rate
Risk
Exposure:
6,000
High
Yield
VCT
Portfolio
................................................................
6
–
Net
Realized
Gains
(Losses)
from
Swap
Agreements
Net
Realized
Gains
(Losses)
from
Forward
Currency
Exchange
Contracts
Net
Change
in
Unrealized
Appreciation/
Depreciation
on
Swap
Agreements
Net
Change
in
Unrealized
Appreciation/
Depreciation
from
Forward
Currency
Exchange
Contracts
Credit
Risk
Exposure:
7,000
–
(35,000)
–
High
Yield
VCT
Portfolio
...........................
$
7
$
–
$
(35)
$
–
Forward
Exchange
Rate
Risk
Exposure:
–
1,000
–
8,000
High
Yield
VCT
Portfolio
...........................
$
–
$
1
$
–
$
8
High
Yield
VCT
Portfolio
Forward
foreign
currency
exchange
contracts:
Average
amounts
sold
..................................................................................
$
201
Centrally
cleared
credit
default
swaps:
Average
notional
value
—
buy
protection
....................................................................
$
(1,968)
Average
notional
value
—
sell
protection
$
(87)
a
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
19
(Unaudited)
identified
cost
basis. Interest
income
is
accrued
daily
and
recorded
using
the
effective
interest
method,
which
includes
the
amortization
of
premiums
and
accretion
of
discounts
on
debt
securities.
The Fund
may
receive
other
income
from
investments
in
loan
assignments
and/or
unfunded
commitments,
including
amendment
fees,
consent
fees,
and
commitment
fees.
These
fees
are
recorded
as
income
when
received.
These
amounts,
if
received,
are
included
in
Interest
income
on
the
Statement
of
Operations. 
 Paydown
gains
or
losses
on
applicable
securities,
if
any,
are
recorded
as
components
of
Interest
income
on
the
Statement
of
Operations.
Withholding
taxes
on
foreign
dividends,
interest,
and
capital
gains
have
been
provided
for
in
accordance
with
the
applicable
tax
rules
and
rates
of
each
respective
country.
Foreign
Currency
Translations:
The
accounting
records
of
the
Fund
are
maintained
in
U.S.
dollars.
Investment
securities
and
other
assets
and
liabilities
of the
Fund
denominated
in
a
foreign
currency
are
translated
into
U.S.
dollars
at
current
exchange
rates.
Purchases
and
sales
of
securities,
income
receipts,
and
expense
payments
are
translated
into
U.S.
dollars
at
the
exchange
rates
on
the
date
of
the
transactions.
The
Fund
does
not
isolate
the
portion
of
the
results
of
operations
resulting
from
changes
in
foreign
exchange
rates
on
investments
from
fluctuations
arising
from
changes
in
market
prices
of
securities
held.
Such
fluctuations,
if
any,
are
disclosed
as
Net
change
in
unrealized
appreciation/depreciation
on investment
securities
and
foreign
currency
translations
on
the
Statement
of
Operations.
Realized
gains
or
losses
from
these
fluctuations,
if
any,
are
disclosed
as
Net
realized
gains
(losses)
from
investment
securities
and
foreign
currency
transactions
on
the
Statement
of
Operations.
Federal
Income
Taxes:
The
Fund
intends
to
continue
to
qualify
as
a
regulated
investment
company
by
complying
with
the
provisions
available
to
certain
investment
companies,
as
defined
in
applicable
sections
of
the
Internal
Revenue
Code,
and
to
make
distributions
of
net
investment
income
and
net
realized
gains
sufficient
to
relieve
it
from
all,
or
substantially
all,
federal
income
taxes.
Accordingly,
no
provision
for
federal
income
taxes
is
required
in
the
financial
statements.
The
Fund
has
a
tax
year
end
of December
31.
For
the
six
months
ended
June
30,
2026,
the
Fund
did
not
incur
any
income
tax,
interest,
or
penalties,
and
has
recorded
no
liability
for
net
unrecognized
tax
benefits
relating
to
uncertain
tax
positions.
Management
of
the
Fund
has
reviewed
tax
positions
taken
in
tax
years
that
remain
subject
to
examination
by
all
major
tax
jurisdictions,
including
federal
(i.e.,
the
last
four
tax
years,
which
includes
the
current
fiscal
tax
year
end).
Management
believes
that
there
is
no
tax
liability
resulting
from
unrecognized
tax
benefits
related
to
uncertain
tax
positions
taken.
Allocations:
Expenses
directly
attributable
to the
Fund
are
charged
to the
Fund,
while
expenses
that
are
attributable
to
more
than
one
fund
in
the
Trust,
or
jointly
with
an
affiliated
trust,
are
allocated
among
the
respective
funds
in
the
Trust
and/or
an
affiliated
trust
based
upon
net
assets
or
another
appropriate
basis.
Income,
expenses
(other
than
class-specific
expenses
such
as
transfer
agent
fees,
state
registration
fees,
printing
fees,
and
12b-1
fees),
and
realized
and
unrealized
gains
or
losses
on
investments
are
allocated
to
each
class
of
shares
based
on
its
relative
net
assets
on
the
date
income
is
earned
or
expenses
and
realized
and
unrealized
gains
and
losses
are
incurred.
Fees
Paid
Indirectly:
Expense
offsets
to
custody
fees
that
arise
from
credits
on
cash
balances
maintained
on
deposit
are
reflected
on
the
Statement
of
Operations,
as
applicable,
as
Fees
paid
indirectly.
3.
Purchases
and
Sales:
Purchases
and sales
of
securities
(excluding
securities
maturing
less
than
one
year
from
acquisition)
for
the
six
months
ended
June
30,
2026,
were
as
follows
(amounts
in
thousands):
4.
Fees
and
Transactions
with
Affiliates
and
Related
Parties:
Investment
Advisory
Fees: 
Investment
advisory
services
are
provided
to
the
Fund
by
the
Adviser,
which
is
a
New
York
corporation
registered
as
an
investment
adviser
with
the
SEC.
Excluding
U.S.
Government
Securities
Purchases
Sales
High
Yield
VCT
Portfolio
....................................................................
$
7,116
$
7,821
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
20
(Unaudited)
Under
the
terms
of
the
Investment
Advisory
Agreement,
the
Adviser
is
entitled
to
receive
fees accrued
daily
and
paid
monthly
at
an
annualized
rate
based
on
a
percentage
of
the
average
daily
net
assets
of
the
Fund.
The
rates
at
which
the
Adviser
is
paid
by
the
Fund
are
included
in
the
table
below.
Amounts
incurred
and
paid
to
VCM
for
the
six
months ended
June
30,
2026,
are
reflected
on
the
Statements
of
Operations
as
Investment
advisory
fees.
Administration
and
Servicing
Fees:
VCM
also
serves
as
the
Fund’s
administrator
and
fund
accountant.
Under
the Administration
and
Fund
Accounting
Agreement,
VCM
is
paid
an
administration
fee
based
on
a
percentage
of
the
average
daily
net
assets
of
all
Companies
and
Funds
(as
defined
in
the
Administration
and
Fund
Accounting
Agreement)
together
with
all
other
registered
investment
companies
for
which
VCM
acts
as
administrator,
and allocated
to the
Fund
on
a
pro
rata
basis
calculated
based
on
the
Fund’s
average
daily
net
assets.
The
tiered
rates
at
which
VCM
is
paid
by
the
Fund
are
shown
in
the
table
below:
Amounts
incurred
for
the
six
months
ended
June
30,
2026,
are
reflected
on
the
Statement
of
Operations
as
Administration
fees.
Effective
February
9,
2026,
Citi
Fund
Services
Ohio,
Inc.
(“Citi”),
an
affiliate
of
Citibank,
acts
as
sub-administrator
and
sub-fund
accountant
to
the
Fund
pursuant
to
a
Sub-Administration
and
Sub-Fund
Accounting
Services
Agreement
between
VCM
and
Citi.
VCM
pays
Citi
a
fee
for
providing
these
services.
The
Fund
reimburses
VCM
and
Citi
for
out-of-pocket
expenses
incurred
in
providing
these
services,
including
costs
associated
with
the
Chief
Compliance
Officer,
and
implementing
new
reports
required
by
new
rules
adopted
by
the
SEC
under
the
1940
Act.
Prior
to
February
9,
2026,
BNY
Mellon
served
as
sub-administrator
and
sub-fund
accountant
for
the
Fund.
The
total
amounts
incurred
and
paid
for the six
months
ended June
30,
2026,
are
reflected
within
the
Sub-Administration
fees
on
the
Statement
of
Operations.
Transfer
Agency
Fees:
Effective February
9,
2026,
FIS
Investor
Services
LLC
serves
as
the
Fund’s
transfer
agent.
Under
the
Transfer
Agent
Agreement,
the
Trust
pays
FIS
a
fee
for
its
services
and
reimburses
FIS
for
all
of its
reasonable
out-of-pocket
expenses
incurred
in
providing
these
services.
Prior
to February
9,
2026,
BNY
Mellon
Investment
Servicing
(US)
Inc.
served
as
the
transfer
agent
to
the
Fund at
negotiated
rates
where
transfer
agent
fees
included
sub-transfer
agent
expenses
incurred
through
the
Fund’s
omnibus
relationship
contracts.
In
addition,
the
Fund
would
reimburse
out-of-pocket
expenses
incurred
by
the
former
transfer
agent
related
to
shareholder
communications
activities
such
as
proxy
and
statement
mailings,
and
outgoing
phone
calls.
Total
transfer
agent
fees
incurred
for
the
six
months ended
June
30,
2026,
are
reflected
on
the
Statement
of
Operations
as
Transfer
agent
fees.
Sub-Transfer
Agency
Fees:
Effective
February
9,
2026,
the
Fund
has
entered
into
Sub-Transfer
Agency
Agreements
with
financial
intermediaries
that
provide
recordkeeping,
processing,
shareholder
communications
and
other
services
to
customers
of
the
intermediaries
that
hold
positions
in
the
Fund
and
have
agreed
to
compensate
the
intermediaries
for
providing
those
services.
Intermediaries
transact
with
the
Fund
primarily
through
the
use
of
omnibus
accounts
on
behalf
of
their
customers
who
hold
positions
in
the
Fund.
These
services
would
have
been
provided
by
the
Fund’s
transfer
agent
and
other
service
providers
if
the
shareholders'
accounts
were
maintained
directly
at
the
Fund's
transfer
agent.
Prior
to
February
9,
2026,
BNY
Mellon
served
as
sub-transfer
agent.
Total
sub-transfer
agent
fees
incurred
for
the six
months
ended
June
30,
2026,
are
reflected
on
the
Statement
of
Operations
as
Sub-Transfer
agent
fees.
Distributor/Underwriting
Services:
Victory
Capital
Services,
Inc.
(the
“Distributor”),
an
affiliate
of
the
Adviser,
serves
as
Distributor
for
the
continuous
offering
of
the
shares
of
the
Fund
pursuant
to
a
Distribution
Agreement
between
the
Distributor
and
the
Trust.
Pursuant
to
the
Distribution
and
Service
Plans
adopted
in
accordance
with
Rule
12b-1
under
the
1940
Act,
the
Distributor
may
receive
a
monthly
distribution
and
service
fee
for
Class
II
at
an
annual
rate
of
up
to
0.25%
of
the
average
daily
net
assets.
Amounts
incurred
and
paid
to
the
Distributor
for
the
six
months
ended
June
30,
2026, are
reflected
on
the
Statement
of
Operations
as
12b-1
fees.
Adviser
Fee
Tier
Rates
Up
to
$1
billion
Over
$1
billion
High
Yield
VCT
Portfolio
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
0.65%,
plus
0.60%
Annual
Charge
Up
to
$15
billion
Over
$15
billion
-
30
billion
Over
$30
billion
-
$85
billion
Over
$85
billion
High
Yield
VCT
Portfolio
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
0.08%,
Plus
0.05%,
plus
0.04%,
plus
0.03%
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
21
(Unaudited)
Other
Fees:
Effective
February
9,
2026,
Citibank
serves
as
the
Fund's
custodian.
The
Fund
pays
Citibank
a
fee
for
providing
these
services.
Prior
to
February
9,
2026,
BNY
Mellon
served
as
the
Fund's
custodian. Total
custodian
fees
incurred
for
the
period ended
June
30,
2026, are
reflected
on
the
Statement
of
Operations
as
Custodian
fees.
Sidley
Austin
LLP
provides
legal
services
to
the
Trust.
The
Adviser
has
entered
into
an
expense
limitation
agreement
with the Fund.
Under
the
terms
of
the
agreement,
the
Adviser
has
agreed
to
waive
fees
or
reimburse
certain
expenses
to
the
extent
that
ordinary
operating
expenses
incurred
by
certain
classes
of
the
Fund
in
any
fiscal
year
exceed
the
expense limits
for
such
classes
of the
Fund.
Such
excess
amounts
will
be
the
liability
of
the
Adviser. Acquired
fund
fees
and
expenses,
interest,
taxes,
brokerage
commissions,
other
expenditures which
are
capitalized
in
accordance
with
GAAP,
and
other
extraordinary
expenses
not
incurred
in
the
ordinary
course
of the
Fund’s
business
are
excluded
from
the
expense
limits.
As
of
June
30,
2026,
the
expense
limits
(excluding
voluntary
waivers) were
as
follows:
Under
the
terms
of
the
expense
limitation
agreement,
the
Fund
has
agreed
to
repay
fees
and
expenses
that
were
waived
or
reimbursed
by
the
Adviser
for
a
period
of
up
to two
years
(twenty-four
(24)
months)
after
the
waiver
or
reimbursement
took
place,
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
Fund
has
not
recorded
any
amounts
available
to
be
repaid
to
the
Adviser
as
a
commitment
and
contingency
liability
due
to
an
assessment
that
such
repayments
are
not
probable
at
June
30,
2026.
The
dates
in
the
table
below
represent
the
fiscal
year-end
in
which
the
24-month
recoupment
period
expires.
As
of
June
30,
2026,
these
amounts
are
available
to
be
repaid
to
the
Adviser
(amounts
in
thousands):
The
Adviser
may
voluntarily
waive
or
reimburse
additional
fees
and
expenses
or
make
other
payments to
assist
the
Fund
in
maintaining
competitive
expense
ratios.
Except
as
noted
above,
voluntary
waivers
and
reimbursements
applicable
to
the
Fund
are
not
available
to
be
recouped
at
a
future
time.
There
were
no
voluntary
waivers
or
reimbursements
for
the six
months
ended
June
30,
2026.
Certain
officers
and/or
interested
trustees
of
the
Fund
are
also
officers
and/or
employees
of
the
Adviser,
administrator,
fund
accountant,
legal
counsel,
and
Distributor.
5.
Risks:
The
following
describes
principal
risks
that
you
may
assume
as
an
investor
in
the
Fund.
The
Fund’s
prospectus
contains
unaudited
information
regarding
the
Fund’s
principal
risks.
Please
refer
to
that
document
when
considering
the
Fund’s
principal
risks.
The
Fund
may
be
subject
to
other
risks
in
addition
to
these
identified
risks.
Market
Risk
—
The
market
prices
of
securities
or
other
assets
held
by
the
Fund
may
go
up
or
down,
sometimes
rapidly
or
unpredictably,
due
to
general
market
conditions,
such
as
real
or
perceived
adverse
economic,
political,
or
regulatory
conditions,
political
instability,
recessions,
inflation,
changes
in
interest
or
currency
rates,
lack
of
liquidity
in
the
bond
markets,
the
spread
of
infectious
illness
or
other
public
health
issues,
weather
or
climate
events,
armed
conflict,
market
disruptions
caused
by
tariffs,
trade
disputes,
sanctions
or
other
government
actions,
or
other
factors
or
adverse
investor
sentiment.
If
the
market
prices
of
the
Fund’s
securities
and
assets
fall,
the
value
of
your
investment
will
go
down.
A
change
in
financial
condition
or
other
event
affecting
a
single
issuer
or
market
may
adversely
impact
securities
markets
as
a
whole.
High-Yield/Junk
Bond
Risk
—
Debt
securities
that
are
below
investment
grade,
called
“junk
bonds,”
are
speculative,
have
a
higher
risk
of
default
or
are
already
in
default,
tend
to
be
less
liquid
and
are
more
difficult
to
value
than
higher
grade
securities.
Junk
bonds
tend
to
be
volatile
and
more
susceptible
to
adverse
events
and
negative
sentiments,
and
may
become
illiquid.
These
risks
are
more
pronounced
for
securities
that
are
already
in
default.
Interest
Rate
Risk
 —
The
market
prices
of
the
Fund’s
fixed
income
securities
may
fluctuate
significantly
when
interest
rates
change.
The
value
of
your
investment
will
generally
go
down
when
interest
rates
rise.
A
rise
in
rates
tends
to
have
a
greater
impact
on
the
prices
of
longer
term
or
duration
securities.
Duration
is
a
measure
of
a
fixed
income
security’s
sensitivity
to
changes
in
interest
rates.
For
example,
if
interest
rates
increase
by
1%,
the
value
of
a
fund’s
portfolio
with
a
portfolio
duration
of
ten
years
would
be
expected
to
decrease
by
10%,
all
other
things
being
equal.
A
general
rise
in
interest
rates
could
adversely
affect
the
price
and
liquidity
of
fixed
income
securities
and
could
also
result
in
increased
redemptions
from
the
Fund.
The
maturity
of
a
security
may
be
significantly
longer
than
its
effective
duration.
A
security’s
maturity
and
other
features
may
be
more
relevant
than
its
effective
duration
in
determining
the
security’s
sensitivity
to
other
factors
affecting
the
issuer
or
markets
generally,
such
as
changes
in
credit
quality
or
in
the
yield
premium
that
the
market
may
establish
for
certain
types
of
securities
In
effect
until
April
1,
2028
Class
I
Class
II
High
Yield
VCT
Portfolio
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
0.90%
1.15%
December
31,
2027
December
31,
2028
Total
High
Yield
VCT
Portfolio
...........................................................
$
12
$
9
$
21
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
22
(Unaudited)
(sometimes
called
“credit
spread”).
In
general,
the
longer
its
maturity
the
more
a
security
may
be
susceptible
to
these
factors.
When
the
credit
spread
for
a
fixed
income
security
goes
up
or
“widens,”
the
value
of
the
security
generally
will
go
down.
6.
Interfund
Lending:
The
Trust
and
the
Adviser
rely
on
an
exemptive
order
granted
by
the
SEC
in
March
2017
(the
“Order”),
permitting
the
establishment
and
operation
of
an
Interfund
Lending
Facility
(the
“Facility”).
The
Facility
allows
the
Fund
to
directly
lend
and
borrow
money
to
or
from
any
other
fund
in
the
Victory
Funds
Complex
that
is
permitted
to
participate
in
the
Facility,
relying
upon
the
Order
at
rates
beneficial
to
both
the
borrowing
and
lending
funds.
Advances
under
the
Facility
are
allowed
for
temporary
or
emergency
purposes,
including
the
meeting
of
redemption
requests
that
otherwise
might
require
the
untimely
disposition
of
securities,
and
are
subject
to
each
Fund’s
borrowing
restrictions.
The
interfund
loan
rate
is
determined,
as
specified
in
the
Order,
by
averaging
the
current
repurchase
agreement
rate
and
the
current
bank
loan
rate.
As
a
Borrower
(as
defined
in
the
Order),
interest
charged
to
the
Fund,
if
any,
during
the
period,
is
reflected
on
the
Statement
of
Operations
under
Interfund
lending
fees.
As
a
Lender
(as
defined
in
the
Order),
interest
earned
by
the
Fund,
if
any,
during
the
period,
is
reflected
on
the
Statement
of
Operations
under
Interfund
lending.
The
Fund
did
not
utilize
or
participate
in
the
Facility
during
the
six
months
ended
June
30,
2026.
7.
Federal
Income
Tax
Information:
Distributions
from
the
Fund's
net
investment
income
are
accrued
daily
and
distributed
on
the
last
business
day
of
each
month.
Distributable
net
realized
gains,
if
any,
are
declared
and
paid
at
least
annually.
The
amounts
of
dividends
from
net
investment
income
and
distributions
from
net
realized
gains
(collectively,
distributions
to
shareholders)
are
determined
in
accordance
with
federal
income
tax
regulations,
which
may
differ
from
GAAP.
To
the
extent
these
“book/tax”
differences
are
permanent
in
nature
(e.g.,
net
operating
loss
and
distribution
reclassification,
utilized
earnings
and
profit
distributions
to
shareholders
on
redemption
of
shares
as
part
of
the
dividends
paid
deduction
for
income
tax
purposes),
such
amounts
are
reclassified
within
the
components
of
net
assets
based
on
their
federal
tax-basis
treatment;
temporary
differences
(e.g.,
wash
sales)
do
not
require
reclassification.
To
the
extent
dividends
and
distributions
exceed
net
investment
income
and
net
realized
gains
for
tax
purposes,
they
are
reported
as
distributions
of
capital.
Net
investment
losses
incurred
by
the
Fund
may
be
reclassified
as
an
offset
to
capital
on
the
accompanying
Statement
of
Assets
and
Liabilities.
As
of
the
tax
year
ended December
31,
2025,
the
Fund
had
net
capital
loss
carryforwards as shown
in
the
table
below.
It
is
unlikely
that
the
Board
will
authorize
a
distribution
of
capital
gains
realized
in
the
future
until
the
capital
loss
carryforwards
have
been
used
(amounts
in
thousands):
8.
Master
Netting
Agreements:
The
Fund
has
entered
into
an
International
Swaps
and
Derivatives
Association,
Inc.
Master
Agreement
(“ISDA
Master
Agreement”)
or
similar
agreement
with
substantially
all
of
its
derivative
counterparties.
An
ISDA
Master
Agreement
is
a
bilateral
agreement
between
the
Fund
and
a
counterparty
that
governs
the
trading
of
certain
Over
the
Counter
(“OTC”)
derivatives
and
typically
contains,
among
other
things,
close-out
and
setoff
provisions
which
apply
upon
the
occurrence
of
an
event
of
default
and/or
a
termination
event
as
defined
under
the
relevant
ISDA
Master
Agreement.
The
ISDA
Master
Agreement
may
also
give
a
party
the
right
to
terminate
all
transactions
traded
under
such
agreement
if,
among
other
things,
there
is
deterioration
in
the
credit
quality
of
the
other
party.
Upon
an
event
of
default
or
a
termination
of
the
ISDA
Master
Agreement,
the
non-defaulting
party
has
the
right
to
close-out
all
transactions
under
such
agreement
and
to
net
amounts
owed
under
each
transaction
to
determine
one
net
amount
payable
by
one
party
to
the
other.
The
right
to
close
out
and
net
payments
across
all
transactions
under
the
ISDA
Master
Agreement
could
result
in
a
reduction
of
the
Fund’s
credit
risk
to
its
counterparty
equal
to
any
amounts
payable
by
the
Fund
under
the
applicable
transactions,
if
any.
However,
the
Fund’s
right
to
set-off
may
be
restricted
or
prohibited
by
the
bankruptcy
or
insolvency
laws
of
the
particular
jurisdiction
to
which
each
specific
ISDA
Master
Agreement
of
each
counterparty
is
subject.
The
collateral
requirements
for
derivatives
transactions
under
an
ISDA
Master
Agreement
are
governed
by
a
credit
support
annex
to
the
ISDA
Master
Agreement.
Collateral
requirements
are
generally
determined
at
the
close
of
business
each
day
and
are
typically
based
on
changes
in
market
values
for
each
transaction
under
an
ISDA
Master
Agreement
and
netted
into
one
amount
for
such
agreement.
Generally,
the
amount
of
collateral
due
from
or
to
a
counterparty
is
subject
to
threshold
(a
“minimum
transfer
amount”)
before
a
transfer
is
required,
which
may
vary
by
counterparty.
Collateral
pledged
for
the
benefit
of
the
Fund
and/or
counterparty
is
held
in
segregated
accounts
by
the
Fund’s
custodian
and
cannot
be
sold,
repledged,
assigned
or
otherwise
used
while
pledged.
Cash
that
has
been
segregated
to
cover
the
Fund’s
collateral
obligations,
if
any,
will
be
reported
separately
on
the
Statement
of
Assets
and
Liabilities
as
“Swaps
collateral”.
Securities
pledged
by
the
Fund
as
collateral,
if
any,
are
identified
as
such
in
the
Schedule
of
Investments.
Financial
instruments
subject
to
an
enforceable
master
netting
agreement,
such
as
an
ISDA
Master
Agreement,
have
been
offset
on
the
Statement
of
Assets
and
Liabilities.
The
following
chart
shows
gross
assets
of
the
Fund
as
of
June
30,
2026 (amounts
in
thousands):
Short-Term
Amount
Long-Term
Amount
Total
High
Yield
VCT
Portfolio
................................................
$
(116)
$
(3,441)
$
(3,557)
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
23
(Unaudited)
(a)
The
amount
presented
here
may
be
less
than
the
total
amount
of
collateral
received/pledged
as
the
net
amount
of
derivative
assets
and
liabilities
cannot
be
less
than
$0.
(b)
Represents
the
net
amount
due
from
the
counterparty
in
the
event
of
default.
9.
Segment
Reporting:
The
Adviser’s
Management
Committee
acts
as
the
Fund’s
Chief
Operating
Decision
Maker
(“CODM”).
The
Fund
represents
a
single
operating
segment,
as
the
CODM
monitors
the
operating
results
of
the
Fund
as
a
whole
and
the
Fund’s
long-term
strategic
asset
allocation
is
predetermined
in
accordance
with
the
Fund's
single
investment
objective.
The
financial
information
in
the
form
of
the
Fund’s
portfolio
composition,
total
returns,
expense
ratios,
and
changes
in
net
assets,
which
are
used
by
the
CODM
to
assess
the
segment’s
performance
versus
the
Fund’s
comparative
benchmarks
and
to
make
resource
allocation
decisions
for
the
Fund’s
single
segment,
is
consistent
with
that
presented
within
the
Fund’s
financial
statements.
Segment
assets
are
reflected
on
the
accompanying
Statement
of
Assets
and
Liabilities
as
“total
assets”
and
significant
segment
expenses
are
listed
on
the
accompanying
Statement
of
Operations.
10.
Affiliated
Securities:
An
affiliated
security
is
a
security
in
which
the
Fund
has
ownership
of
at
least
5%
of
the issuer's
outstanding
voting
shares,
an
investment
company
managed
by
VCM,
or
an
issuer
under
common
control
with the
Fund
or
VCM.
The
Fund
does
not
invest
in
affiliated
securities
for
the
purpose
of
exercising
management
or
control.
These
securities
are
noted
as
affiliated
on
the
Fund’s
Schedule
of
Portfolio
Investments.
The
financial
statements
of
the
underlying
funds
can
be
found
in
shareholder
reports
filed
with
the
SEC
by
each
such
underlying
fund
semi-annually
on
Form
N-CSR
and
are
available
for
download
from
both
the
SEC’s
as
well
as
each
respective
underlying
fund’s
website.
Transactions
in
affiliated
securities
during
the six
months
ended
June
30,
2026,
were
as
follows
(amounts
in
thousands,
except
shares):
a
a
a
a
a
Counterparty
Derivative
Liabilities
Subject
to
Master
Netting
Agreement
Derivatives
Available
for
Offset
Non-Cash
Collateral
Pledged
(a)
Cash
Collateral
Pledged
(a)
Net
Amount
of
Derivative
Liabilities
(b)
State
Street
$
6
$
—
$
—
$
—
$
6
Total
$
6
$
—
$
—
$
—
$
6
Fair
Value
12/31/2025
Purchases
at
Cost
Proceeds
from
Sales
Net
Realized
Gains
(Losses)
Net
Change
in
Unrealized
Appreciation/
Depreciation
Fair
Value
6/30/2026
Shares
Dividend
Income
Capital
Gain
Distributions
High
Yield
VCT
Portfolio
Victory
Pioneer
ILS
Interval
Fund
................
$
854
$
—
$
—
$
—
$
76
$
930
88,418
$
—
$
—
Victory
Funds
P.O.
Box
182593
Columbus,
Ohio
43218-2593
Visit
our
website
at:
vcm.com
Call
Victory
at:
(800)
539-3863
19622-0826
June
30,
2026
Semi-Annual:
Full
Financials
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Mid
Cap
Value
VCT
Portfolio
TABLE
OF
CONTENTS
Victory
Variable
Insurance
Funds
II
1
The
Fund
is
distributed
by
Victory
Capital
Services,
Inc.
Victory
Capital
Management
Inc.
is
the
investment
adviser
to
the
Fund
and
receives
fees
from
the
Fund
for
performing
services
for
the
Fund.
This
report
is
not
authorized
for
distribution
to
prospective
investors
unless
preceded
or
accompanied
by
a
current
prospectus
of
the
Fund.
For
additional
information
about
any
Victory
Fund,
including
fees,
expenses,
and
risks,
view
our
prospectus
online
at
vcm.com
or
call
800-539-3863.
Read
it
carefully
before
you
invest
or
send
money.
The
information
in
this
report
is
based
on
data
obtained
from
recognized
services
and
sources
and
is
believed
to
be
reliable.
Any
opinions,
projections,
or
recommendations
in
this
report
are
subject
to
change
without
notice
and
are
not
intended
as
individual
investment
advice.
Past
investment
performance
of
the
Fund,
markets
or
securities
mentioned
herein
should
not
be
considered
to
be
indicative
of
future
results
•
NOT
FDIC
INSURED
•
NO
BANK
GUARANTEE
•
MAY
LOSE
VALUE
Schedule
of
Portfolio
Investments
(Form
N-CSR
Item
6)
2
Financial
Statements
(Form
N-CSR
Item
7)
Statement
of
Assets
and
Liabilities
4
Statement
of
Operations
5
Statements
of
Changes
in
Net
Assets
6
Financial
Highlights
8
Notes
to
Financial
Statements
(Form
N-CSR
Item
7)
10
Schedule
of
Portfolio
Investments
June
30,
2026
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Mid
Cap
Value
VCT
Portfolio
2
(Unaudited)
See
notes
to
financial
statements.
Security
Description
Shares
a
Value
(000)
Common
Stocks
(99.7%)
Communication
Services
(1.7%):
Fox
Corp.
,
Class
A
......................................................
38,446
$
2,005
Consumer
Discretionary
(8.8%):
D.R.
Horton,
Inc.
.......................................................
11,648
1,897
eBay,
Inc.
............................................................
15,985
1,786
Expedia
Group,
Inc.
.....................................................
7,581
1,940
Ford
Motor
Co.
........................................................
89,435
1,243
Genuine
Parts
Co.
......................................................
16,966
2,002
Lear
Corp.
............................................................
8,344
1,119
9,987
Consumer
Staples
(6.1%):
Darling
Ingredients,
Inc.
(a)
................................................
13,133
717
Maplebear,
Inc.
(a)
......................................................
23,125
1,095
Sprouts
Farmers
Market,
Inc.
(a)
............................................
14,603
1,235
Sysco
Corp.
...........................................................
23,553
1,969
Target
Corp.
..........................................................
9,498
1,241
The
Hershey
Co.
.......................................................
4,100
719
6,976
Energy
(8.8%):
Baker
Hughes
Co.
,
Class
A
................................................
36,599
2,031
Chord
Energy
Corp.
.....................................................
20,479
2,341
Devon
Energy
Corp.
.....................................................
82,542
3,411
Range
Resources
Corp.
...................................................
41,133
1,530
Valero
Energy
Corp.
.....................................................
2,915
759
10,072
Financials
(22.9%):
American
International
Group,
Inc.
..........................................
25,775
1,921
Citizens
Financial
Group,
Inc.
..............................................
35,707
2,502
M&T
Bank
Corp.
.......................................................
14,292
3,402
Northern
Trust
Corp.
....................................................
20,140
3,501
Old
Republic
International
Corp.
............................................
32,812
1,343
Raymond
James
Financial,
Inc.
.............................................
18,539
2,818
Regions
Financial
Corp.
..................................................
76,238
2,302
State
Street
Corp.
.......................................................
33,931
5,755
Truist
Financial
Corp.
....................................................
49,946
2,488
26,032
Health
Care
(6.4%):
Biogen,
Inc.
(a)
.........................................................
8,136
1,758
GE
HealthCare
Technologies,
Inc.
...........................................
29,188
1,868
Labcorp
Holdings,
Inc.
...................................................
5,655
1,583
Zimmer
Biomet
Holdings,
Inc.
.............................................
24,413
2,102
7,311
Industrials
(17.9%):
AerCap
Holdings
NV
....................................................
12,714
1,853
AGCO
Corp.
..........................................................
19,991
2,393
Delta
Air
Lines,
Inc.
.....................................................
16,149
1,513
Dover
Corp.
...........................................................
7,629
1,711
Emerson
Electric
Co.
....................................................
7,946
1,137
Fortune
Brands
Innovations,
Inc.
............................................
27,265
1,497
Generac
Holdings,
Inc.
(a)
.................................................
3,604
1,055
J.B.
Hunt
Transport
Services,
Inc.
...........................................
7,655
2,216
Paychex,
Inc.
..........................................................
5,899
580
Regal
Rexnord
Corp.
....................................................
9,141
2,177
Rockwell
Automation,
Inc.
................................................
3,676
1,820
Terex
Corp.
...........................................................
7,650
554
The
Brink's
Co.
........................................................
9,668
914
WESCO
International,
Inc.
................................................
2,644
913
20,333
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Mid
Cap
Value
VCT
Portfolio
3
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
June
30,
2026
See
notes
to
financial
statements.
Security
Description
Shares
a
Value
(000)
Information
Technology
(8.2%):
CDW
Corp.
...........................................................
6,717
$
945
Motorola
Solutions,
Inc.
..................................................
3,896
1,618
NetApp,
Inc.
..........................................................
13,581
2,102
Ralliant
Corp.
.........................................................
22,203
1,635
Trimble,
Inc.
(a)
........................................................
19,334
989
Western
Digital
Corp.
....................................................
1,689
1,079
Zoom
Communications,
Inc.
,
Class
A
(a)
......................................
10,916
942
9,310
Materials
(4.3%):
Amrize
Ltd.
(a)
.........................................................
28,997
1,546
International
Paper
Co.
...................................................
31,750
1,210
PPG
Industries,
Inc.
.....................................................
17,433
2,114
4,870
Real
Estate
(7.0%):
AvalonBay
Communities,
Inc.
..............................................
7,825
1,477
Extra
Space
Storage,
Inc.
.................................................
7,939
1,154
First
Industrial
Realty
Trust,
Inc.
............................................
17,276
1,059
Gaming
and
Leisure
Properties,
Inc.
.........................................
27,194
1,211
Healthpeak
Properties,
Inc.
................................................
29,112
623
Host
Hotels
&
Resorts,
Inc.
................................................
46,708
1,107
Kimco
Realty
Corp.
.....................................................
51,103
1,295
7,926
Utilities
(7.6%):
CenterPoint
Energy,
Inc.
..................................................
64,131
2,824
Eversource
Energy
......................................................
32,638
2,359
Exelon
Corp.
..........................................................
32,208
1,501
Public
Service
Enterprise
Group,
Inc.
.........................................
24,208
1,965
8,649
Total
Common
Stocks
(Cost
$80,771)
a
a
a
113,471
Total
Investments
(Cost
$80,771)
—
99.7%
113,471
Other
assets
in
excess
of
liabilities
—  0.3%
308
NET
ASSETS
-
100.00%
$
113,779
(a)
Non-income
producing
security.
Statement
of
Assets
and
Liabilities
June
30,
2026
4
See
notes
to
financial
statements.
Victory
Variable
Insurance
Funds
II
(Amounts
in
Thousands,
Except
Per
Share
Amounts)
(Unaudited)
Victory
Pioneer
Mid
Cap
Value
VCT
Portfolio
Assets:
Investments,
at
value
(Cost
$80,771)
$
113,471
Receivables:
Dividends
and
interest
132
Capital
shares
issued
1
Investments
sold
3,205
From
Adviser
—
(a)
Prepaid
expenses
1
Total
Assets
116,810
Liabilities:
Payables:
Payable
to
custodian
2,113
Investments
purchased
798
Capital
shares
redeemed
25
Accrued
expenses
and
other
payables:
Investment
advisory
fees
60
Administration
fees
4
Custodian
fees
1
Transfer
agent
fees
2
Trustees'
fees
—
(a)
12b-1
fees
8
Other
accrued
expenses
20
Total
Liabilities
3,031
Commitments
and
contingencies
(Note
4
)
Net
Assets:
Capital
74,128
Total
accumulated
earnings
(loss)
39,651
Net
Assets
$
113,779
Net
Assets:
Class
I
$
35,569
Class
II
78,210
Total
$
113,779
Shares
(unlimited
number
of
shares
authorized
with
a
par
value
of
$0.001
per
share):
Class
I
2,785
Class
II
6,236
Total
9,021
Net
asset
value,
offering
and
redemption
price
per
share:(b)
Class
I
$
12.77
Class
II
12.54
(a)
Rounds
to
less
than
$1
thousand.
(b)
Per
share
amount
may
not
recalculate
due
to
rounding
of
net
assets
and/or
shares
outstanding.
Statement
of
Operations
For
the
Six
Months
Ended
June
30,
2026
5
See
notes
to
financial
statements.
Victory
Variable
Insurance
Funds
II
(Amounts
in
Thousands)
(Unaudited)
Victory
Pioneer
Mid
Cap
Value
VCT
Portfolio
Investment
Income:
Dividends
$
1,306‌
Interest
7‌
Total
Income
1,313‌
Expenses:
Investment
advisory
fees
351‌
Administration
fees
23‌
Sub-Administration
fees
6‌
12b-1
fees
—
Class
II
92‌
Custodian
fees
1‌
Trustees'
fees
3‌
Legal
and
audit
fees
22‌
Other
expenses
5‌
Total
Expenses
503‌
Expenses
waived/reimbursed
by
Adviser
(
4‌
)
Net
Expenses
499‌
Net
Investment
Income
(Loss)
814‌
Realized/Unrealized
Gains
(Losses)
from
Investments:
Net
realized
gains
(losses)
from
investment
securities
6,313‌
Net
change
in
unrealized
appreciation/depreciation
on
investment
securities
and
foreign
currency
translations
9,191‌
Net
realized/unrealized
gains
(losses)
on
investments
15,504‌
Change
in
net
assets
resulting
from
operations
$
16,318‌
6
(Amounts
in
Thousands)
Victory
Variable
Insurance
Funds
II
Statements
of
Changes
in
Net
Assets
See
notes
to
financial
statements.
Victory
Pioneer
Mid
Cap
Value
VCT
Portfolio
Six
Months
Ended
June
30,
2026
(Unaudited)
Year
Ended
December
31,
2025*
From
Investment
Activities:
Operations:
Net
Investment
Income
(Loss)
$
814‌
$
1,762‌
Net
realized
gains
(losses)
6,313‌
2,259‌
Net
change
in
unrealized
appreciation/depreciation
9,191‌
6,614‌
Change
in
net
assets
resulting
from
operations
16,318‌
10,635‌
Distributions
to
Shareholders:
Class
I
(
1,271‌
)
(
3,209‌
)
Class
II
(
2,725‌
)
(
7,078‌
)
Change
in
net
assets
resulting
from
distributions
to
shareholders
(
3,996‌
)
(
10,287‌
)
Change
in
net
assets
resulting
from
capital
transactions
(
2,327‌
)
(
3,646‌
)
Change
in
net
assets
9,995‌
(
3,298‌
)
Net
Assets:
Beginning
of
period
103,784‌
107,082‌
End
of
period
$
113,779‌
$
103,784‌
*
Pioneer
Mid
Cap
Value
VCT
Portfolio
(the
“Predecessor
Fund”)
reorganized
with
the
Fund
effective
April
1,
2025
(the
“Reorganization”).
The
Predecessor
Fund
is
the
accounting
survivor
of
the
Reorganization
and
shareholders
holding
Class
I
and
Class
II
shares
of
the
Predecessor
Fund
received
Class
I
and
Class
II
shares
of
the
Fund,
respectively.
7
(Amounts
in
Thousands)
Victory
Variable
Insurance
Funds
II
Statements
of
Changes
in
Net
Assets
(continued)
See
notes
to
financial
statements.
Victory
Pioneer
Mid
Cap
Value
VCT
Portfolio
Six
Months
Ended
June
30,
2026
(Unaudited)
Year
Ended
December
31,
2025*
Capital
Transactions:
Class
I
Proceeds
from
shares
issued
$
764‌
$
948‌
Distributions
reinvested
1,271‌
3,209‌
Cost
of
shares
redeemed
(
2,669‌
)
(
4,882‌
)
Total
Class
I
$
(
634‌
)
$
(
725‌
)
Class
II
Proceeds
from
shares
issued
$
3,147‌
$
2,754‌
Distributions
reinvested
2,725‌
7,078‌
Cost
of
shares
redeemed
(
7,565‌
)
(
12,753‌
)
Total
Class
II
$
(
1,693‌
)
$
(
2,921‌
)
Change
in
net
assets
resulting
from
capital
transactions
$
(
2,327‌
)
$
(
3,646‌
)
Share
Transactions:
Class
I
Issued
62‌
86‌
Reinvested
101‌
316‌
Redeemed
(
216‌
)
(
438‌
)
Total
Class
I
(
53‌
)
(
36‌
)
Class
II
Issued
259‌
254‌
Reinvested
220‌
708‌
Redeemed
(
628‌
)
(
1,164‌
)
Total
Class
II
(
149‌
)
(
202‌
)
Change
in
Shares
(
202‌
)
(
238‌
)
*
Pioneer
Mid
Cap
Value
VCT
Portfolio
(the
“Predecessor
Fund”)
reorganized
with
the
Fund
effective
April
1,
2025
(the
“Reorganization”).
The
Predecessor
Fund
is
the
accounting
survivor
of
the
Reorganization
and
shareholders
holding
Class
I
and
Class
II
shares
of
the
Predecessor
Fund
received
Class
I
and
Class
II
shares
of
the
Fund,
respectively.
Victory
Variable
Insurance
Funds
II
Financial
Highlights
For
a
Share
Outstanding
Throughout
Each
Period
8
See
notes
to
financial
statements.
NOTE:
The
above
financial
highlights
do
not
reflect
the
deduction
of
non-fund
expenses
associated
with
variable
insurance
products,
such
as
mortality
and
expense
risk
charges,
separate
account
charges,
and
sales
charges.
Victory
Pioneer
Mid
Cap
Value
VCT
Portfolio
Class
I*
Six
Months
Ended
June
30,
2026
(Unaudited)
Year
Ended
December
31,
2025
Year
Ended
December
31,
2024
Year
Ended
December
31,
2023
Year
Ended
December
31,
2022
Year
Ended
December
31,
2021
Net
Asset
Value,
Beginning
of
Period
$11.39
$11.44
$11.20
$11.47
$23.08
$17.97
Investment
Activities:
Net
investment
income
(loss)(a)
0.10
0.21
0.22
0.23
0.27
0.21
Net
realized
and
unrealized
gains
(losses)
1.74
0.92
0.93
1.08
(2.68)
5.10
Total
from
Investment
Activities
1.84
1.13
1.15
1.31
(2.41)
5.31
Distributions
to
Shareholders
from:
Net
investment
income
(0.21)
(0.24)
(0.22)
(0.23)
(0.45)
(0.20)
Net
realized
gains
(0.25)
(0.94)
(0.69)
(1.35)
(8.75)
—
Total
Distributions
(0.46)
(1.18)
(0.91)
(1.58)
(9.20)
(0.20)
Net
Asset
Value,
End
of
Period
$12.77
$11.39
$11.44
$11.20
$11.47
$23.08
Total
Return(b)(c)
16.27%
11.19%(d)
10.94%
12.46%
(5.64)%(e)
29.67%
Ratios
to
Average
Net
Assets:
Net
Expenses(f)(g)
0.76%
0.76%
0.76%
0.80%
0.78%
0.75%
Net
Investment
Income
(Loss)(f)
1.67%
1.89%
1.98%
2.06%
1.83%
1.01%
Gross
Expenses(f)(g)
0.76%
0.76%
0.76%
0.80%
0.78%
0.75%
Supplemental
Data:
Net
Assets
at
end
of
period
(000's)
$35,569
$32,316
$32,886
$33,431
$33,516
$38,358
Portfolio
Turnover(b)(h)
11%
14%
32%
48%
66%
60%
*
Pioneer
Mid
Cap
Value
VCT
Portfolio
(the
“Predecessor
Fund”)
reorganized
with
the
Fund
effective
April
1,
2025
(the
“Reorganization”).
The
Predecessor
Fund
is
the
accounting
survivor
of
the
Reorganization
and
shareholders
holding
Class
I
and
Class
II
shares
of
the
Predecessor
Fund
received
Class
I
and
Class
II
shares
of
the
Fund,
respectively.
(a)
Per
share
net
investment
income
(loss)
has
been
calculated
using
the
average
daily
shares
method.
(b)
Not
annualized
for
periods
less
than
one
year.
(c)
Assumes
reinvestment
of
all
net
investment
income
and
realized
capital
gain
distributions,
if
any,
during
the
period.
Includes
adjustments
in
accordance
with
U.S.
Generally
Accepted
Accounting
Principles
and
could
differ
from
the
reported
return.
(d)
If
the
Fund
had
not
recognized
gains
in
settlement
of
class
action
lawsuits
during
the
year
ended
December
31,
2025,
the
total
return
would
have
been
11.09%.
(e)
If
the
Fund
had
not
recognized
gains
in
settlement
of
class
action
lawsuits
during
the
year
ended
December
31,
2022,
the
total
return
would
have
been
(5.72)%.
(f)
Annualized
for
periods
less
than
one
year.
(g)
Does
not
include
acquired
fund
fees
and
expenses,
if
any.
(h)
Portfolio
turnover
is
calculated
on
the
basis
of
the
Fund
as
a
whole
without
distinguishing
between
the
classes
of
shares.
9
Victory
Variable
Insurance
Funds
II
For
a
Share
Outstanding
Throughout
Each
Period
Financial
Highlights
—
continued
See
notes
to
financial
statements.
NOTE:
The
above
financial
highlights
do
not
reflect
the
deduction
of
non-fund
expenses
associated
with
variable
insurance
products,
such
as
mortality
and
expense
risk
charges,
separate
account
charges,
and
sales
charges.
Victory
Pioneer
Mid
Cap
Value
VCT
Portfolio
Class
II*
Six
Months
Ended
June
30,
2026
(Unaudited)
Year
Ended
December
31,
2025
Year
Ended
December
31,
2024
Year
Ended
December
31,
2023
Year
Ended
December
31,
2022
Year
Ended
December
31,
2021
Net
Asset
Value,
Beginning
of
Period
$11.19
$11.26
$11.04
$11.32
$22.78
$17.74
Investment
Activities:
Net
investment
income
(loss)(a)
0.09
0.18
0.19
0.20
0.23
0.14
Net
realized
and
unrealized
gains
(losses)
1.71
0.90
0.92
1.07
(2.64)
5.06
Total
from
Investment
Activities
1.80
1.08
1.11
1.27
(2.41)
5.20
Distributions
to
Shareholders
from:
Net
investment
income
(0.20)
(0.21)
(0.20)
(0.20)
(0.30)
(0.16)
Net
realized
gains
(0.25)
(0.94)
(0.69)
(1.35)
(8.75)
—
Total
Distributions
(0.45)
(1.15)
(0.89)
(1.55)
(9.05)
(0.16)
Net
Asset
Value,
End
of
Period
$12.54
$11.19
$11.26
$11.04
$11.32
$22.78
Total
Return(b)(c)
16.17%
10.86%(d)
10.64%
12.20%
(5.88)%(e)
29.37%
Ratios
to
Average
Net
Assets:
Net
Expenses(f)(g)
1.01%
1.01%
1.01%
1.05%
1.03%
0.98%
Net
Investment
Income
(Loss)(f)
1.43%
1.64%
1.73%
1.81%
1.56%
0.69%
Gross
Expenses(f)(g)
1.01%
1.01%
1.01%
1.05%
1.03%
0.98%
Supplemental
Data:
Net
Assets
at
end
of
period
(000's)
$78,210
$71,468
$74,196
$75,532
$72,523
$90,686
Portfolio
Turnover(b)(h)
11%
14%
32%
48%
66%
60%
*
Pioneer
Mid
Cap
Value
VCT
Portfolio
(the
“Predecessor
Fund”)
reorganized
with
the
Fund
effective
April
1,
2025
(the
“Reorganization”).
The
Predecessor
Fund
is
the
accounting
survivor
of
the
Reorganization
and
shareholders
holding
Class
I
and
Class
II
shares
of
the
Predecessor
Fund
received
Class
I
and
Class
II
shares
of
the
Fund,
respectively.
(a)
Per
share
net
investment
income
(loss)
has
been
calculated
using
the
average
daily
shares
method.
(b)
Not
annualized
for
periods
less
than
one
year.
(c)
Assumes
reinvestment
of
all
net
investment
income
and
realized
capital
gain
distributions,
if
any,
during
the
period.
Includes
adjustments
in
accordance
with
U.S.
Generally
Accepted
Accounting
Principles
and
could
differ
from
the
reported
return.
(d)
For
the
year
ended
December
31,
2025,
the
Fund’s
total
return
includes
gains
in
settlement
of
class
action
lawsuits.
The
impact
on
Class
II’s
total
return
was
less
than
0.005%.
(e)
If
the
Fund
had
not
recognized
gains
in
settlement
of
class
action
lawsuits
during
the
year
ended
December
31,
2022,
the
total
return
would
have
been
(5.97)%.
(f)
Annualized
for
periods
less
than
one
year.
(g)
Does
not
include
acquired
fund
fees
and
expenses,
if
any.
(h)
Portfolio
turnover
is
calculated
on
the
basis
of
the
Fund
as
a
whole
without
distinguishing
between
the
classes
of
shares.
Notes
to
Financial
Statements
June
30,
2026
Victory
Variable
Insurance
Funds
II
10
(Unaudited)
1.
Organization:
Victory
Variable
Insurance Funds
II
(the
“Trust”)
is
organized
as
a
Delaware
statutory
trust
and
is
registered
under
the Investment
Company
Act
of
1940,
as
amended
(the
“1940
Act”),
as
an
open-end
investment
company.
The
Trust
is
comprised
of seven funds
and
is
authorized
to
issue
an
unlimited
number
of
shares,
which
are
units
of
beneficial
interest
with a
par
value
of
$0.001
per
share.
The
Fund's
shares
are
only
available
for
purchase
by
insurance
companies
for
funding
variable
annuity
and
variable
life
insurance
contracts
or
by
qualified
pension
and
retirement
plans.
The
accompanying
financial
statements
are
those
of
the
following
fund
(the
"Fund").
The
fund
is
classified
as
diversified
under
the
1940
Act.
Each
class
of
shares
of the
Fund
has
substantially
identical
rights
and
privileges
except
with
respect
to
sales
charges,
fees
paid
under
distribution
plans,
expenses
allocable
exclusively
to
each
class
of
shares,
voting
rights
on
matters
solely
affecting
a
single
class
of
shares,
and
the
exchange
privilege
of
each
class
of
shares.
 Victory
Capital
Management
Inc.
(“VCM”
or
the
“Adviser”)
is
an
indirect
wholly
owned
subsidiary
of
Victory
Capital
Holdings,
Inc.,
a
publicly
traded
Delaware
corporation,
and
a
wholly
owned
direct
subsidiary
of
Victory
Capital
Operating,
LLC.
Under
the
Trust’s
organizational
documents,
its
officers
and
trustees
are
indemnified
against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Fund.
In
addition,
in
the
normal
course
of
business,
the
Fund
enters
into
contracts
with
its
vendors
and
others
that
provide
for
general
indemnifications.
The
Fund’s
maximum
exposure
under
these
arrangements
is
unknown,
as
this
would
involve
future
claims
that
may
be
made
against
the
Fund.
However,
based
on
experience,
the
Fund
expects
that
risk
of
loss
to
be
remote.
The Fund,
which
commenced
operations
on
April
1,
2025,
is
the
successor
to
the
Pioneer Mid
Cap
Value
VCT
Portfolio
(the
“Predecessor
Fund”).
The
Predecessor Fund
transferred
all
of
the
net
assets
of
Class
I
and Class
II
shares
in
exchange
for
the
Fund’s
Class
I and
Class II
shares,
respectively,
on
April
1,
2025
pursuant
to
an
agreement
and
plan
of
reorganization
(the
“Reorganization”)
which
was
approved
by
the
shareholders
of
the
Predecessor Fund
on
March
27,
2025.
The
Reorganization
was
structured
so
that
the
transfer
of
assets
and
liabilities
did
not
result
in
federal
tax
liability
to
the
Predecessor
Fund or
its
shareholders.
Shareholders
holding
Class
I,
and
Class
II shares
of
the
Predecessor Fund
received
Class
I
and
Class II
shares
of
the
Fund,
respectively,
in
the
Reorganization.
The
Predecessor Fund
was
the
accounting
survivor
of
the
Reorganization.
Accordingly,
the
Predecessor
Fund’s
performance
and
financial
history
have
become
the
performance
and
financial
history
of
the
Fund.
The
Fund’s
investment
objective
is
to seek
capital
appreciation
by
investing
in
a
diversified
portfolio
of
securities
consisting
primarily
of
common
stocks.
Effective
April
1,
2025, VCM
serves
as
the
Fund’s
investment
adviser,
succeeding
Amundi
Asset
Management
US,
Inc.
(“Amundi
US”).
On
the
same
date,
Victory
Capital
Services,
Inc.
(the
“Distributor”),
an
affiliate
of
the
Adviser,
became
the
Distributor
for
the
Fund's
shares,
succeeding
Amundi
Distributor
US,
Inc.
The
Distributor
receives
no
fee
or
other
compensation
for
these
services
(See
Note
4).
On
September
30,
2025,
the
Trust’s
Board
of
Trustees
(the
“Board”),
upon
the
recommendation
of
the
Adviser,
approved
a
change
in
the
Fund's
custodian,
sub-administrator,
sub-fund
accountant,
and
transfer
agent.
Effective
as
of
February
9,
2026, Citibank,
N.A.
serves
as
the
custodian
of
the
Fund,
Citi
Fund
Services
Ohio,
Inc.
serves
as
sub-administrator
and
sub-fund
accountant
of
the
Fund
and
FIS
Investor
Services
LLC
serves
as
transfer
agent
of
the
Fund.
2.
Significant
Accounting
Policies:
The
following
is
a
summary
of
significant
accounting
policies
followed
by
the Fund
in
the
preparation
of
its
financial
statements.
The
policies
are
in
conformity
with
U.S.
Generally
Accepted
Accounting
Principles
(“GAAP”).
The
preparation
of
financial
statements
in
accordance
with
GAAP
requires
the
Adviser
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
and
disclosure
of
contingent
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
reported
amounts
of
income
and
expenses
for
the
period.
Actual
results
could
differ
from
those
estimates.
The
Fund
follows
the
specialized
accounting
and
reporting
requirements
under
GAAP
that
are
applicable
to
investment
companies
under
Accounting
Standards
Codification
Topic 946.
Investment
Valuation: 
The
Fund
records
investments
at
fair
value.
Fair
value
is
defined
as
the
price
that
would
be
received
to sell
an asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
at
the
measurement
date.
The
valuation
techniques
described
below
maximize
the
use
of
observable
inputs
and
minimize
the
use
of
unobservable
inputs
in
determining
fair
value.
The
inputs
used
for
valuing
the
Fund’s
investments
are
summarized
in
the
three
broad
levels
listed
below:
Level
1
—
quoted
prices
(unadjusted)
in
active
markets
for
identical
securities
Level
2
—
other
significant
observable
inputs
(including
quoted
prices
for
similar
securities,
interest
rates,
or
credit
spreads,
applicable
to
those
securities,
etc.)
Level
3
—
significant
unobservable
inputs
(including
the
Adviser’s
assumptions
in
determining
the
fair
value
of
investments)
Changes
in
valuation
techniques
may
result
in
transfers
in
or
out
of
an
assigned
level
within
the
disclosure
hierarchy.
The
inputs
or
methodologies
used
for
valuation
techniques
are
not
necessarily
an
indication
of
the
risks
associated
with
entering
into
those
investments.
The Adviser,
appointed
as
the
valuation
designee
by the
Board, has
established
the
Pricing
Committee
(the
“Committee”),
and
subject
to
Board
oversight,
the
Committee
administers
and
oversees
the
Fund’s
valuation
policies
and
procedures,
which
are
approved
by
the
Board.
Fund
(Legal
Name)
Fund
(Short
Name)
Investment
Share
Classes
Offered
Victory
Pioneer
Mid
Cap
Value
VCT
Portfolio
Mid
Cap
Value
VCT
Portfolio
Class
I
and
Class
II
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
11
(Unaudited)
Portfolio
securities
listed
or
traded
on
securities
exchanges,
including
Exchange-Traded
Funds
(“ETFs”)
and
American
Depositary
Receipts,
are
valued
at
the
last
sale
price
on
the
exchange
or
system
where
the
security
is
principally
traded,
if
available,
or
at
the
Nasdaq
Official
Closing
Price.
If
there
have
been
no
sales
for
that
day
on
the
exchange
or
system,
then
a
security
is
valued
at
the
closing mean
if
available,
otherwise
the
bid
quotation
on
the
exchange
or
system
where
the
security
is
principally
traded.
In
each
of
these
situations,
valuations
are
typically
categorized
as
Level
1
in
the
fair
value
hierarchy.
Investments
in
open-end
investment
companies,
other
than
ETFs, are
valued
at their
net
asset
value
(“NAV”).
These
valuations
are
typically
categorized
as
Level
1 in
the
fair
value
hierarchy.
In
the
event
that
price
quotations
or
valuations
are
not
readily
available,
investments
are
valued
at
fair
value
in
accordance
with
procedures
established
by
and
under
the
general
supervision
and
responsibility
of
the
Board.
These
valuations
are
typically
categorized
as
Level
2
or
Level
3
in
the
fair
value
hierarchy,
based
on
the
observability
of
inputs
used
to
determine
the
fair
value.
The
effect
of
fair
value
pricing
is
that
securities
may
not
be
priced
on
the
basis
of
quotations
from
the
primary
market
in
which
they
are
traded
and
the
actual
price
realized
from
the
sale
of
a
security
may
differ
materially
from
the
fair
value
price.
Valuing
these
securities
at
fair
value
is
intended
to
cause
the
Fund’s
net
asset
value to
be
more
reliable
than
it
otherwise
would
be.
The
principal
exchanges
and
markets
for
non-U.S.
equity
securities
have
closing
times
prior
to
the
close
of
the
New
York
Stock
Exchange.
However,
the
value
of
these
securities
may
be
influenced
by
changes
in
global
markets
occurring
after
the
closing
times
of
the
local
exchanges
and
markets
up
to
the
time
the
Fund
determines
its
net
asset
value.
Consequently,
the
Fund
uses
a
fair
value
model
developed
by
an
independent
pricing
service
to
value
non-U.S.
equity
securities.
On
a
daily
basis,
the
pricing
service
recommends
changes,
based
on
a
proprietary
model,
to
the
closing
market
prices
of
each
non-U.S.
security
held
by
the
Fund
to
reflect
the
security’s
fair
value
at
the
time
the
Fund
determines
its
net
asset
value.
These
recommendations
are
applied
in
accordance
with
the
Adviser’s
(the
valuation
designee’s)
valuation
procedures.
These
valuations
are
typically
categorized
as
Level
2
in
the
fair
value
hierarchy.
A
summary
of
the
valuations
as
of
June
30,
2026, based
upon
the
three
levels
defined
above,
is
included
in
the
table
below
while
the
breakdown,
by
category,
of
investments
is
disclosed
on
the
Schedule
of
Portfolio
Investments
(amounts
in
thousands):
As
of June
30,
2026,
there
were
no
significant transfers
into/out
of
Level
3.
Investment
Companies:
Open-End
Funds:
The
Fund
may
invest
in
portfolios
of
open-end
investment
companies.
These
investment
companies
value
securities
in
their
portfolios
for
which
market
quotations
are
readily
available
at
their
market
values
(generally
the
last
reported
sale
price)
and
all
other
securities
and
assets
at
their
fair
value
by
the
methods
established
by
the
board
of
directors
of
the
underlying
funds.
Investment
Transactions
and
Related
Income:
Investment
transactions
are
recorded
on
trade
date.
For
financial
reporting
purposes,
however,
investment
transactions
are
accounted
for
on
trade
date
or
the
last
business
day
of
the
reporting
period.
 Dividend
income
is
recorded
on
the
ex-dividend
date.
Non-cash
dividends
included
in
income,
if
any,
are
recorded
at
the
fair
value
of
the
securities
received.
Gains
or
losses
realized
on
sales
of
securities
are
recorded
on
the
identified
cost
basis. Interest
income
is
accrued
daily
and
recorded
using
the
effective
interest
method,
which
includes
the
amortization
of
premiums
and
accretion
of
discounts
on
debt
securities.
Withholding
taxes
on
foreign
dividends,
interest,
and
capital
gains
have
been
provided
for
in
accordance
with
the
applicable
tax
rules
and
rates
of
each
respective
country.
Foreign
Currency
Translations:
The
accounting
records
of
the
Fund
are
maintained
in
U.S.
dollars.
Investment
securities
and
other
assets
and
liabilities
of the
Fund
denominated
in
a
foreign
currency
are
translated
into
U.S.
dollars
at
current
exchange
rates.
Purchases
and
sales
of
securities,
income
receipts,
and
expense
payments
are
translated
into
U.S.
dollars
at
the
exchange
rates
on
the
date
of
the
transactions.
The
Fund
does
not
isolate
the
portion
of
the
results
of
operations
resulting
from
changes
in
foreign
exchange
rates
on
investments
from
fluctuations
arising
from
changes
in
market
prices
of
securities
held.
Such
fluctuations,
if
any,
are
disclosed
as
Net
change
in
unrealized
appreciation/depreciation
on investment
securities
and
foreign
currency
translations
on
the
Statement
of
Operations.
Realized
gains
or
losses
from
these
fluctuations,
if
any,
are
disclosed
as
Net
realized
gains
(losses)
from
investment
securities
and
foreign
currency
transactions
on
the
Statement
of
Operations.
Securities
Lending:
Effective
May
8,
2026,
the
Fund,
through
a
Securities
Lending
Agreement
with
Citibank,
N.A.
(“Citibank”),
may
lend
its
securities
to
qualified
financial
institutions,
such
as
certain
broker-dealers
and
banks,
to
earn
additional
income,
net
of
income
retained
by
Citibank.
Borrowers
are
required
to
initially
secure
their
loans
for
collateral
in
the
amount
of
at
least
102%
of
the
value
of
U.S.
securities
loaned
or
at
least
105%
of
the
Level
1
Level
2
Level
3
Total
Mid
Cap
Value
VCT
Portfolio
Common
Stocks
...............................................
$
113,471
$
—
$
—
$
113,471
Total
.......................................................
$
113,471
$
—
$
—
$
113,471
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
12
(Unaudited)
value
of
non-U.S.
securities
loaned,
marked-to-market
daily.
Any
collateral
shortfalls
associated
with
increases
in
the
valuation
of
the
securities
loaned
are
generally
cured
the
next
business
day.
The
collateral
can
be
received
in
the
form
of
cash
collateral
and/or
non-cash
collateral.
Non-
cash
collateral
can
include
U.S.
Government
Securities
and
other
securities
as
permitted
by Securities
and
Exchange
Commission
(“SEC”)
guidelines.
The
cash
collateral
is
invested
in
short-term
instruments
or
cash
equivalents,
primarily
open-end
investment
companies,
as
noted
on
the
Fund’s
Schedule
of
Portfolio
Investments.
The
Fund
effectively
does
not
have
control
of
the
non-cash
collateral
and
therefore
it
is
not
disclosed
on
the
Fund’s
Schedule
of
Portfolio
Investments.
Collateral
requirements
are
determined
daily
based
on
the
value
of
the
Fund’s
securities
on
loan
as
of
the
end
of
the
prior
business
day.
During
the
time
portfolio
securities
are
on
loan,
the
borrower
will
pay
the
Fund
any
dividends
or
interest
paid
on
such
securities
plus
any
fee
negotiated
between
the
parties
to
the
lending
agreement.
The
Fund
also
earns
a
return
from
the
collateral.
The
Fund
pays
Citibank
various
fees
in
connection
with
the
investment
of
cash
collateral
and
fees
based
on
the
investment
income
received
from
securities
lending
activities.
Securities
lending
income
(net
of
these
fees)
is
disclosed
on
the
Statement
of
Operations.
Loans
are
terminable
upon
demand
and
the
borrower
must
return
the
loaned
securities
within
the
lesser
of
one
standard
settlement
period
or
five
business
days.
Although
risk
is
mitigated
by
the
collateral,
the
Fund
could
experience
a
delay
in
recovering
its
securities
and
possible
loss
of
income
or
value
if
the
borrower
fails
to
return
them.
In
addition,
there
is
a
risk
that
the
value
of
the
short-term
investments
will
be
less
than
the
amount
of
cash
collateral
required
to
be
returned
to
the
borrower.
The
Fund’s
agreement
with
Citibank
does
not
include
master
netting
provisions.
Non-cash
collateral
received
by
the
Fund
may
not
be
sold
or
repledged,
except
to
satisfy
borrower
default.
Federal
Income
Taxes:
The
Fund
intends
to
continue
to
qualify
as
a
regulated
investment
company
by
complying
with
the
provisions
available
to
certain
investment
companies,
as
defined
in
applicable
sections
of
the
Internal
Revenue
Code,
and
to
make
distributions
of
net
investment
income
and
net
realized
gains
sufficient
to
relieve
it
from
all,
or
substantially
all,
federal
income
taxes.
Accordingly,
no
provision
for
federal
income
taxes
is
required
in
the
financial
statements.
The
Fund
has
a
tax
year
end
of December
31.
For
the
six
months
ended
June
30,
2026,
the
Fund
did
not
incur
any
income
tax,
interest,
or
penalties,
and
has
recorded
no
liability
for
net
unrecognized
tax
benefits
relating
to
uncertain
tax
positions.
Management
of
the
Fund
has
reviewed
tax
positions
taken
in
tax
years
that
remain
subject
to
examination
by
all
major
tax
jurisdictions,
including
federal
(i.e.,
the
last
four
tax
years,
which
includes
the
current
fiscal
tax
year
end).
Management
believes
that
there
is
no
tax
liability
resulting
from
unrecognized
tax
benefits
related
to
uncertain
tax
positions
taken.
Allocations:
Expenses
directly
attributable
to the
Fund
are
charged
to the
Fund,
while
expenses
that
are
attributable
to
more
than
one
fund
in
the
Trust,
or
jointly
with
an
affiliated
trust,
are
allocated
among
the
respective
funds
in
the
Trust
and/or
an
affiliated
trust
based
upon
net
assets
or
another
appropriate
basis.
Income,
expenses
(other
than
class-specific
expenses
such
as
transfer
agent
fees,
state
registration
fees,
printing
fees,
and
12b-1
fees),
and
realized
and
unrealized
gains
or
losses
on
investments
are
allocated
to
each
class
of
shares
based
on
its
relative
net
assets
on
the
date
income
is
earned
or
expenses
and
realized
and
unrealized
gains
and
losses
are
incurred.
3.
Purchases
and
Sales:
Purchases
and
sales
of
securities
(excluding
securities
maturing
less
than
one
year
from
acquisition)
and
purchases
and
sales
associated
with
in-
kind
transactions
for
the
six
months
ended
June
30,
2026,
are
included
in
the
table
below
(amounts
in
thousands).
Any
realized
gains
or
losses
from
in-kind
redemptions
are
reflected
on
the
Statement
of
Operations
as
net
realized
gains
(losses)
from
in-kind
redemptions.
4.
Fees
and
Transactions
with
Affiliates
and
Related
Parties:
Investment
Advisory
Fees: 
Investment
advisory
services
are
provided
to
the
Fund
by
the
Adviser,
which
is
a
New
York
corporation
registered
as
an
investment
adviser
with
the
SEC.
Under
the
terms
of
the
Investment
Advisory
Agreement,
the
Adviser
is
entitled
to
receive
fees
accrued
daily
and
paid
monthly
at
an
annualized
rate
of
0.65%
of
the
Fund’s
average
daily
net
assets.
Amounts
incurred
and
paid
to
VCM
for
the six
months
ended
June
30,
2026,
are
reflected
on
the
Statement
of
Operations
as
Investment
advisory
fees.
Excluding
U.S.
Government
Securities
Purchases
Sales
Mid
Cap
Value
VCT
Portfolio
.................................................................
$
11,800
$
17,277
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
13
(Unaudited)
Administration
and
Servicing
Fees:
VCM
also
serves
as
the
Fund’s
administrator
and
fund
accountant.
Under
the Administration
and
Fund
Accounting
Agreement,
VCM
is
paid
an
administration
fee
based
on
a
percentage
of
the
average
daily
net
assets
of
all
Companies
and
Funds
(as
defined
in
the
Administration
and
Fund
Accounting
Agreement)
together
with
all
other
registered
investment
companies
for
which
VCM
acts
as
administrator,
and allocated
to the
Fund
on
a
pro
rata
basis
calculated
based
on
the
Fund’s
average
daily
net
assets.
The
tiered
rates
at
which
VCM
is
paid
by
the
Fund
are
shown
in
the
table
below:
Amounts
incurred
for
the
six
months
ended
June
30,
2026,
are
reflected
on
the
Statement
of
Operations
as
Administration
fees.
Effective
February
9,
2026,
Citi
Fund
Services
Ohio,
Inc.
(“Citi”),
an
affiliate
of
Citibank,
acts
as
sub-administrator
and
sub-fund
accountant
to
the
Fund
pursuant
to
a
Sub-Administration
and
Sub-Fund
Accounting
Services
Agreement
between
VCM
and
Citi.
VCM
pays
Citi
a
fee
for
providing
these
services.
The
Fund
reimburses
VCM
and
Citi
for
out-of-pocket
expenses
incurred
in
providing
these
services,
including
costs
associated
with
the
Chief
Compliance
Officer,
and
implementing
new
reports
required
by
new
rules
adopted
by
the
SEC
under
the
1940
Act.
Prior
to
February
9,
2026,
BNY
Mellon
served
as
sub-administrator
and
sub-fund
accountant
for
the
Fund.
The
total
amounts
incurred
and
paid
for the six
months
ended June
30,
2026,
are
reflected
within
the
Sub-Administration
fees
on
the
Statement
of
Operations.
Transfer
Agency
Fees:
Effective February
9,
2026,
FIS
Investor
Services
LLC
serves
as
the
Fund’s
transfer
agent.
Under
the
Transfer
Agent
Agreement,
the
Trust
pays
FIS
a
fee
for
its
services
and
reimburses
FIS
for
all
of its
reasonable
out-of-pocket
expenses
incurred
in
providing
these
services.
Prior
to February
9,
2026,
BNY
Mellon
Investment
Servicing
(US)
Inc.
served
as
the
transfer
agent
to
the
Fund at
negotiated
rates
where
transfer
agent
fees
included
sub-transfer
agent
expenses
incurred
through
the
Fund’s
omnibus
relationship
contracts.
In
addition,
the
Fund
would
reimburse
out-of-pocket
expenses
incurred
by
the
former
transfer
agent
related
to
shareholder
communications
activities
such
as
proxy
and
statement
mailings,
and
outgoing
phone
calls.
Total
transfer
agent
fees
incurred
for
the
six
months ended
June
30,
2026,
are
reflected
on
the
Statement
of
Operations
as
Transfer
agent
fees.
Sub-Transfer
Agency
Fees:
Effective
February
9,
2026,
the
Fund
has
entered
into
Sub-Transfer
Agency
Agreements
with
financial
intermediaries
that
provide
recordkeeping,
processing,
shareholder
communications
and
other
services
to
customers
of
the
intermediaries
that
hold
positions
in
the
Fund
and
have
agreed
to
compensate
the
intermediaries
for
providing
those
services.
Intermediaries
transact
with
the
Fund
primarily
through
the
use
of
omnibus
accounts
on
behalf
of
their
customers
who
hold
positions
in
the
Fund.
These
services
would
have
been
provided
by
the
Fund’s
transfer
agent
and
other
service
providers
if
the
shareholders'
accounts
were
maintained
directly
at
the
Fund's
transfer
agent.
Prior
to
February
9,
2026,
BNY
Mellon
served
as
sub-transfer
agent.
Total
sub-transfer
agent
fees
incurred
for
the six
months
ended
June
30,
2026,
are
reflected
on
the
Statement
of
Operations
as
Sub-Transfer
agent
fees.
Distributor/Underwriting
Services:
Victory
Capital
Services, Inc.
(the
“Distributor”),
an
affiliate
of
the
Adviser,
serves
as
Distributor
for
the
continuous
offering
of
the
shares
of
the
Fund
pursuant
to
a
Distribution
Agreement
between
the
Distributor
and
the
Trust.
Pursuant
to
the
Distribution
and
Service
Plans
adopted
in
accordance
with
Rule
12b-1
under
the
1940
Act,
the
Distributor
may
receive
a
monthly
distribution
and
service
fee
for
Class
II
at
an
annual
rate
of
up
to
0.25%
of
the
average
daily
net
assets.
Amounts
incurred
and
paid
to
the
Distributor
for
the
six
months
ended
June
30,
2026, are
reflected
on
the
Statement
of
Operations
as
12b-1
fees.
Other
Fees:
Effective
February
9,
2026,
Citibank
serves
as
the
Fund's
custodian.
The
Fund
pays
Citibank
a
fee
for
providing
these
services.
Prior
to
February
9,
2026,
BNY
Mellon
served
as
the
Fund's
custodian. Total
custodian
fees
incurred
for
the
period ended
June
30,
2026, are
reflected
on
the
Statement
of
Operations
as
Custodian
fees.
Sidley
Austin
LLP
provides
legal
services
to
the
Trust.
The
Adviser
has
entered
into
an
expense
limitation
agreement
with the Fund.
Under
the
terms
of
the
agreement,
the
Adviser
has
agreed
to
waive
fees
or
reimburse
certain
expenses
to
the
extent
that
ordinary
operating
expenses
incurred
by
certain
classes
of
the
Fund
in
any
fiscal
year
exceed
the
expense limits
for
such
classes
of the
Fund.
Such
excess
amounts
will
be
the
liability
of
the
Adviser. Acquired
fund
fees
and
expenses,
interest,
taxes,
brokerage
commissions,
other
expenditures which
are
capitalized
in
accordance
with
GAAP,
and
other
extraordinary
expenses
not
incurred
in
the
ordinary
course
of the
Fund’s
business
are
excluded
from
the
expense
limits.
As
of
June
30,
2026,
the
expense
limits
(excluding
voluntary
waivers) were
as
follows:
Annual
Charge
Up
to
$15
billion
Over
$15
billion
-
$30
billion
Over
$30
billion
-
$85
billion
Over
$85
billion
Mid
Cap
Value
VCT
Portfolio
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
0.08%,
plus
0.05%,
plus
0.04%,
plus
0.03%
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
14
(Unaudited)
Under
the
terms
of
the
expense
limitation
agreement,
the
Fund
has
agreed
to
repay
fees
and
expenses
that
were
waived
or
reimbursed
by
the
Adviser
for
a
period
of
up
to two
years
(twenty-four
(24)
months)
after
the
waiver
or
reimbursement
took
place,
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
Fund
has
not
recorded
any
amounts
available
to
be
repaid
to
the
Adviser
as
a
commitment
and
contingency
liability
due
to
an
assessment
that
such
repayments
are
not
probable
at
June
30,
2026.
The
dates
in
the
table
below
represent
the
fiscal
year-end
in
which
the
24-month
recoupment
period
expires.
As
of
June
30,
2026,
these
amounts
are
available
to
be
repaid
to
the
Adviser
(amounts
in
thousands):
The
Adviser
may
voluntarily
waive
or
reimburse
additional
fees
and
expenses
or
make
other
payments to
assist
the
Fund
in
maintaining
competitive
expense
ratios.
Except
as
noted
above,
voluntary
waivers
and
reimbursements
applicable
to
the
Fund are
not
available
to
be
recouped
at
a
future
time.
There
were
no
voluntary
waivers
or
reimbursements
for
the six
months
ended
June
30,
2026.
Certain
officers
and/or
interested
trustees
of
the
Fund
are
also
officers
and/or
employees
of
the
Adviser,
administrator,
fund
accountant,
legal
counsel,
and
Distributor.
5.
Risks:
The
following
describes
principal
risks
that
you
may
assume
as
an
investor
in
the
Fund.
The
Fund’s
prospectus
contains
unaudited
information
regarding
the
Fund’s
principal
risks.
Please
refer
to
that
document
when
considering
the
Fund’s
principal
risks.
The
Fund
may
be
subject
to
other
risks
in
addition
to
these
identified
risks.
Market
Risk
—
The
market
prices
of
securities
or
other
assets
held
by
the
Fund
may
go
up
or
down,
sometimes
rapidly
or
unpredictably,
due
to
general
market
conditions,
such
as
real
or
perceived
adverse
economic,
political,
or
regulatory
conditions,
political
instability,
recessions,
inflation,
changes
in
interest
or
currency
rates,
lack
of
liquidity
in
the
markets,
the
spread
of
infectious
illness
or
other
public
health
issues,
weather
or
climate
events,
armed
conflict,
market
disruptions
caused
by
tariffs,
trade
disputes,
sanctions
or
other
government
actions,
or
other
factors
or
adverse
investor
sentiment.
If
the
market
prices
of
the
Fund’s
securities
and
assets
fall,
the
value
of
your
investment
will
go
down.
A
change
in
financial
condition
or
other
event
affecting
a
single
issuer
or
market
may
adversely
impact
securities
markets
as
a
whole.
Mid-Size
Companies
Risk
— 
Compared
to
large
companies,
mid-size
companies,
and
the
market
for
their
equity
securities
may
be
more
sensitive
to
changes
in
earnings
results
and
investor
expectations,
or
poor
economic
or
market
conditions,
including 
those
experienced
during
a
recession,
have
more
limited
product
lines,
operating
histories,
markets
or
capital
resources,
may
be
dependent
upon
limited
management
group,
experience
sharper
swings
in
market
values,
have
limited
liquidity,
be
harder
to
value
or
to
sell
at
the
times
and
prices
the
Adviser
thinks
appropriate,
and
offer
greater
potential
for
gain
and
loss.
Value
Style Risk
—
The
prices
of
securities
the
Adviser
believes
are
undervalued
may
not
appreciate
as
expected
or
may
go
down.
Value
stocks
may
fall
out
of
favor
with
investors
and
underperform
the
overall
equity
market.
A
value
stock
may
not
increase
in
price
as
anticipated
by
the
Adviser
if
other
investors
fail
to
recognize
the
company’s
value
and
bid
up
the
price
or
the
factors
that
the
Adviser
believes
will
increase
the
price
of
the
security
do
not
occur
or
do
not
have
the
anticipated
effect.
Sector
Risk
—
To
the
extent a
Fund
(or
Funds) focuses
in
one
or
more
sectors,
market
or
economic
factors
impacting
those
sectors
could
have
a
significant
effect
on
the
value
of
the
Fund’s
(or
Funds’) investments
and
could
make
the
Fund’s
(or
Funds’)
performance
more
volatile.
Financials
Sector
Risk
—
Companies
in
the
financials
sector
are
subject
to
extensive
government
regulation,
which
may
limit
both
the
amounts
and
types
of
loans
and
other
financial
commitments
that
companies
in
this
sector
can
make,
and
the
interest
rates
and
fees
that
these
companies
can
charge.
Profitability
can
be
largely
dependent
on
the
availability
and
cost
of
capital
and
the
rate
of
corporate
and
consumer
debt
defaults,
and
can
fluctuate
significantly
when
interest
rates
change.
Financial
difficulties
of
borrowers
can
negatively
affect
the
financials
sector.
Insurance
companies
can
be
subject
to
severe
price
competition.
The
financials
sector
can
be
subject
to
relatively
rapid
change
as
dis-
tinctions
between
financial
service
segments
become
increasingly
blurred.
6.
Interfund
Lending:
The
Trust
and
the
Adviser
rely
on
an
exemptive
order
granted
by
the
SEC
in
March
2017
(the
“Order”),
permitting
the
establishment
and
operation
of
an
Interfund
Lending
Facility
(the
“Facility”).
The
Facility
allows
the
Fund
to
directly
lend
and
borrow
money
to
or
from
any
other
fund
in
the
Victory
Funds
Complex
that
is
permitted
to
participate
in
the
Facility,
relying
upon
the
Order
at
rates
beneficial
to
both
the
borrowing
and
lending
funds.
Advances
under
the
Facility
are
allowed
for
temporary
or
emergency
purposes,
including
the
meeting
of
redemption
requests
In
effect
until
April
1,
2028
Class
I
Class
II
Mid
Cap
Value
VCT
Portfolio
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
0.76%
1.01
%
December
31,
2027
December
31,
2028
Total
Mid
Cap
Value
VCT
Portfolio
........................................................
$
3
$
4
$
7
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
15
(Unaudited)
that
otherwise
might
require
the
untimely
disposition
of
securities,
and
are
subject
to
each
Fund’s
borrowing
restrictions.
The
interfund
loan
rate
is
determined,
as
specified
in
the
Order,
by
averaging
the
current
repurchase
agreement
rate
and
the
current
bank
loan
rate.
As
a
Borrower
(as
defined
in
the
Order),
interest
charged
to
the
Fund,
if
any,
during
the
period,
is
reflected
on
the
Statement
of
Operations
under
Interfund
lending
fees.
As
a
Lender
(as
defined
in
the
Order),
interest
earned
by
the
Fund,
if
any,
during
the
period,
is
reflected
on
the
Statement
of
Operations
under
Interfund
lending.
The
Fund
did
not
utilize
or
participate
in
the
Facility
during
the
six
months
ended
June
30,
2026.
7.
Federal
Income
Tax
Information:
The
Fund
intends
to
distribute
any
net
investment
income
annually.
Distributable
net
realized
gains,
if
any,
are
declared
and
paid
at
least
annually.
The
amounts
of
dividends
from
net
investment
income
and
distributions
from
net
realized
gains
(collectively,
distributions
to
shareholders)
are
determined
in
accordance
with
federal
income
tax
regulations,
which
may
differ
from
GAAP.
To
the
extent
these
“book/tax”
differences
are
permanent
in
nature
(e.g.,
net
operating
loss
and
distribution
reclassification,
utilized
earnings
and
profit
distributions
to
shareholders
on
redemption
of
shares
as
part
of
the
dividends
paid
deduction
for
income
tax
purposes),
such
amounts
are
reclassified
within
the
components
of
net
assets
based
on
their
federal
tax-basis
treatment;
temporary
differences
(e.g.,
wash
sales)
do
not
require
reclassification.
To
the
extent
dividends
and
distributions
exceed
net
investment
income
and
net
realized
gains
for
tax
purposes,
they
are
reported
as
distributions
of
capital.
Net
investment
losses
incurred
by
the
Fund
may
be
reclassified
as
an
offset
to
capital
on
the
accompanying
Statement
of
Assets
and
Liabilities.
The
tax
character
of
current
year
distributions
paid
and
the
tax
basis
of
the
current
components
of
accumulated
earnings
(losses)
will
be
determined
at
the
end
of
the
current
tax
year.
At
the
tax year
ended December
31,
2025,
the
Fund
had
no
capital
loss
carryforwards
for
federal
income
tax
purposes.
8.
Segment
Reporting:
The
Adviser’s
Management
Committee
acts
as
the
Fund’s
Chief
Operating
Decision
Maker
(“CODM”).
The
Fund
represents
a
single
operating
segment,
as
the
CODM
monitors
the
operating
results
of
the
Fund
as
a
whole
and
the
Fund’s
long-term
strategic
asset
allocation
is
predetermined
in
accordance
with
the
Fund's
single
investment
objective.
The
financial
information
in
the
form
of
the
Fund’s
portfolio
composition,
total
returns,
expense
ratios,
and
changes
in
net
assets,
which
are
used
by
the
CODM
to
assess
the
segment’s
performance
versus
the
Fund’s
comparative
benchmarks
and
to
make
resource
allocation
decisions
for
the
Fund’s
single
segment,
is
consistent
with
that
presented
within
the
Fund’s
financial
statements.
Segment
assets
are
reflected
on
the
accompanying
Statement
of
Assets
and
Liabilities
as
“total
assets”
and
significant
segment
expenses
are
listed
on
the
accompanying
Statement
of
Operations.
Victory
Funds
P.O.
Box
182593
Columbus,
Ohio
43218-2593
Visit
our
website
at:
vcm.com
Call
Victory
at:
(800)
539-3863
19609-0826
June
30,
2026
Semi-Annual:
Full
Financials
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Select
Mid
Cap
Growth
VCT
Portfolio
TABLE
OF
CONTENTS
Victory
Variable
Insurance
Funds
II
1
The
Fund
is
distributed
by
Victory
Capital
Services,
Inc.
Victory
Capital
Management
Inc.
is
the
investment
adviser
to
the
Fund
and
receives
fees
from
the
Fund
for
performing
services
for
the
Fund.
This
report
is
not
authorized
for
distribution
to
prospective
investors
unless
preceded
or
accompanied
by
a
current
prospectus
of
the
Fund.
For
additional
information
about
any
Victory
Fund,
including
fees,
expenses,
and
risks,
view
our
prospectus
online
at
vcm.com
or
call
800-539-3863.
Read
it
carefully
before
you
invest
or
send
money.
The
information
in
this
report
is
based
on
data
obtained
from
recognized
services
and
sources
and
is
believed
to
be
reliable.
Any
opinions,
projections,
or
recommendations
in
this
report
are
subject
to
change
without
notice
and
are
not
intended
as
individual
investment
advice.
Past
investment
performance
of
the
Fund,
markets
or
securities
mentioned
herein
should
not
be
considered
to
be
indicative
of
future
results
•
NOT
FDIC
INSURED
•
NO
BANK
GUARANTEE
•
MAY
LOSE
VALUE
Schedule
of
Portfolio
Investments
(Form
N-CSR
Item
6)
2
Financial
Statements
(Form
N-CSR
Item
7)
Statement
of
Assets
and
Liabilities
5
Statement
of
Operations
6
Statements
of
Changes
in
Net
Assets
7
Financial
Highlights
8
Notes
to
Financial
Statements
(Form
N-CSR
Item
7)
9
Schedule
of
Portfolio
Investments
June
30,
2026
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Select
Mid
Cap
Growth
VCT
Portfolio
2
(Unaudited)
See
notes
to
financial
statements.
Security
Description
Shares
a
Value
(000)
Common
Stocks
(99.4%)
Communication
Services
(1.4%):
ROBLOX
Corp.,
Class
A(a)
...............................................
7,633
$
415
Spotify
Technology
SA(a)
.................................................
2,722
1,250
1,665
Communications
Equipment
(3.6%):
Applied
Optoelectronics,
Inc.(a)
............................................
13,316
1,973
Nokia
Oyj
,
ADR
.......................................................
122,332
1,625
Viavi
Solutions,
Inc.(a)
...................................................
14,498
692
4,290
Consumer
Discretionary
(12.1%):
AutoZone,
Inc.(a)
.......................................................
346
1,106
Chipotle
Mexican
Grill,
Inc.,
Class
A(a)
.......................................
32,519
1,106
DoorDash
,
Inc.,
Class
A(a)
................................................
5,001
923
DraftKings,
Inc.(a)
......................................................
24,238
612
Marriott
International,
Inc.,
Class
A
..........................................
5,832
2,161
Ollie's
Bargain
Outlet
Holdings,
Inc.(a)
.......................................
8,331
641
Planet
Fitness,
Inc.,
Class
A(a)
.............................................
5,200
271
Ross
Stores,
Inc.
.......................................................
7,141
1,520
Royal
Caribbean
Cruises
Ltd.
..............................................
9,518
3,022
TopBuild
Corp.(a)
......................................................
3,177
1,126
Viking
Holdings
Ltd.(a)
..................................................
18,658
1,953
14,441
Consumer
Staples
(1.9%):
BJ's
Wholesale
Club
Holdings,
Inc.(a)
........................................
9,700
846
Celsius
Holdings,
Inc.(a)
..................................................
14,272
418
Darling
Ingredients,
Inc.(a)
................................................
18,078
987
2,251
Electronic
Equipment,
Instruments
&
Components
(5.0%):
Amphenol
Corp.,
Class
A
.................................................
7,988
1,408
Flex
Ltd.(a)
...........................................................
20,959
3,397
Novanta,
Inc.(a)
........................................................
6,797
1,103
5,908
Energy
(3.1%):
HF
Sinclair
Corp.
.......................................................
16,846
1,173
PBF
Energy,
Inc.,
Class
A
.................................................
16,714
761
The
Williams
Cos.,
Inc.
..................................................
23,942
1,780
3,714
Financials
(6.7%):
Etoro
Group
Ltd.,
Class
A(a)
...............................................
15,839
625
Evercore,
Inc.,
Class
A
...................................................
4,688
1,601
Marex
Group
PLC
......................................................
30,943
1,886
Miami
International
Holdings,
Inc.(a)
........................................
16,120
599
Robinhood
Markets,
Inc.,
Class
A(a)
.........................................
24,764
2,483
Tradeweb
Markets,
Inc.,
Class
A
............................................
8,208
818
8,012
Health
Care
(14.6%):
Edgewise
Therapeutics,
Inc.(a)
.............................................
47,711
1,938
Erasca
,
Inc.(a)
.........................................................
94,029
1,723
Guardant
Health,
Inc.(a)
..................................................
10,846
1,627
Insmed
,
Inc.(a)
.........................................................
12,306
1,312
Labcorp
Holdings,
Inc.
...................................................
6,451
1,806
McKesson
Corp.
.......................................................
2,496
1,886
Natera
,
Inc.(a)
.........................................................
8,416
2,285
Repligen
Corp.(a)
.......................................................
5,141
701
ResMed,
Inc.
..........................................................
2,066
403
Revolution
Medicines,
Inc.(a)
..............................................
3,272
613
Spyre
Therapeutics,
Inc.(a)
................................................
20,240
1,797
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Select
Mid
Cap
Growth
VCT
Portfolio
3
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
June
30,
2026
See
notes
to
financial
statements.
Security
Description
Shares
a
Value
(000)
Vaxcyte
,
Inc.(a)
........................................................
22,825
$
1,327
17,418
Industrials
(21.8%):
Axon
Enterprise,
Inc.(a)
..................................................
3,657
2,050
BWX
Technologies,
Inc.
..................................................
4,317
840
Firefly
Aerospace,
Inc.(a)
.................................................
24,200
712
Forgent
Power
Solutions,
Inc.,
Class
A(a)
......................................
18,316
1,023
Generac
Holdings,
Inc.(a)
.................................................
4,992
1,462
Hyundai
Rotem
Co.
Ltd.
..................................................
6,239
697
Innio
NV(a)
...........................................................
285
11
Intuitive
Machines,
Inc.,
Class
A(a)
..........................................
24,052
514
L3Harris
Technologies,
Inc.
...............................................
4,740
1,377
Regal
Rexnord
Corp.
....................................................
7,726
1,840
Rollins,
Inc.
...........................................................
39,371
1,643
Saia,
Inc.(a)
...........................................................
3,373
1,421
Siemens
Energy
AG
.....................................................
15,279
2,895
Tkms
AG
&
Co.
KGaA
(a)
................................................
10,408
887
Verisk
Analytics,
Inc.,
Class
A
..............................................
6,010
1,079
Vertiv
Holdings
Co.,
Class
A
...............................................
10,080
3,375
Voyager
Technologies,
Inc.,
Class
A(a)
.......................................
15,622
504
W.W.
Grainger,
Inc.
.....................................................
2,613
3,555
25,885
IT
Services
(7.1%):
Akamai
Technologies,
Inc.(a)
..............................................
4,299
508
Cloudflare,
Inc.,
Class
A(a)
................................................
16,727
4,103
MongoDB,
Inc.,
Class
A(a)
................................................
2,826
949
Snowflake,
Inc.,
Class
A(a)
................................................
11,132
2,833
8,393
Real
Estate
(1.1%):
Iron
Mountain,
Inc.
.....................................................
10,687
1,350
Semiconductors
&
Semiconductor
Equipment
(9.2%):
Advanced
Micro
Devices,
Inc.(a)
............................................
5,658
3,287
Astera
Labs,
Inc.(a)
.....................................................
3,483
1,682
Credo
Technology
Group
Holding
Ltd.(a)
.....................................
7,661
2,084
Kioxia
Holdings
Corp.(a)
.................................................
4,600
2,537
Rambus,
Inc.(a)
........................................................
5,974
793
Siltronic
AG(a)
........................................................
5,864
546
10,929
Software
(3.4%):
Datadog,
Inc.,
Class
A(a)
.................................................
11,567
3,012
Samsara,
Inc.,
Class
A(a)
.................................................
30,199
979
3,991
Technology
Hardware,
Storage
&
Peripherals
(5.7%):
Sandisk
Corp.(a)
.......................................................
1,477
3,358
Western
Digital
Corp.
....................................................
5,344
3,414
6,772
Utilities
(2.7%):
NRG
Energy,
Inc.
.......................................................
14,679
2,144
Talen
Energy
Corp.(a)
...................................................
2,627
1,009
3,153
Total
Common
Stocks
(Cost
$67,057)
a
a
a
118,172
Total
Investments
(Cost
$67,057)
—
99.4%
118,172
Other
assets
in
excess
of
liabilities
—  0.6%
721
NET
ASSETS
-
100.00%
$
118,893
At
June
30,
2026,
the
Fund's
investments
in
foreign
securities
were
12.5%
of
net
assets.
(a)
Non-income
producing
security.
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Select
Mid
Cap
Growth
VCT
Portfolio
4
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
June
30,
2026
See
notes
to
financial
statements.
ADR
—
American
Depositary
Receipt
PLC
—
Public
Limited
Company
Statement
of
Assets
and
Liabilities
June
30,
2026
5
See
notes
to
financial
statements.
Victory
Variable
Insurance
Funds
II
(Amounts
in
Thousands,
Except
Per
Share
Amounts)
(Unaudited)
Victory
Pioneer
Select
Mid
Cap
Growth
VCT
Portfolio
Assets:
Investments,
at
value
(Cost
$67,057)
$
118,172
Foreign
currency,
at
value
(Cost
$23)
23
Cash
1,324
Receivables:
Dividends
and
interest
33
Capital
shares
issued
—
(a)
Investments
sold
1,235
From
Adviser
5
Reclaims
5
Prepaid
expenses
6
Total
Assets
120,803
Liabilities:
Payables:
Investments
purchased
1,715
Capital
shares
redeemed
121
Accrued
expenses
and
other
payables:
Investment
advisory
fees
70
Administration
fees
4
Total
Liabilities
1,910
Commitments
and
contingencies
(Note
4
)
Net
Assets:
Capital
56,372
Total
accumulated
earnings
(loss)
62,521
Net
Assets
$
118,893
Shares
(unlimited
shares
authorized
with
a
par
value
of
$0.001
per
share):
3,688
Net
asset
value:
$
32.24
(a)
Rounds
to
less
than
$1
thousand.
Statement
of
Operations
For
the
Six
Months
Ended
June
30,
2026
6
See
notes
to
financial
statements.
Victory
Variable
Insurance
Funds
II
(Amounts
in
Thousands)
(Unaudited)
Victory
Pioneer
Select
Mid
Cap
Growth
VCT
Portfolio
Investment
Income:
Dividends
$
271‌
Interest
7‌
Foreign
tax
withholding
(
5‌
)
Total
Income
273‌
Expenses:
Investment
advisory
fees
390‌
Administration
fees
23‌
Sub-Administration
fees
6‌
Custodian
fees
2‌
Trustees'
fees
3‌
Legal
and
audit
fees
25‌
Other
expenses
11‌
Total
Expenses
460‌
Expenses
waived/reimbursed
by
Adviser
(
6‌
)
Net
Expenses
454‌
Net
Investment
Income
(Loss)
(
181‌
)
Realized/Unrealized
Gains
(Losses)
from
Investments:
Net
realized
gains
(losses)
from
investment
securities
and
foreign
currency
transactions
13,690‌
Net
change
in
unrealized
appreciation/depreciation
on
investment
securities
and
foreign
currency
translations
11,847‌
Net
realized/unrealized
gains
(losses)
on
investments
25,537‌
Change
in
net
assets
resulting
from
operations
$
25,356‌
7
(Amounts
in
Thousands)
Victory
Variable
Insurance
Funds
II
Statements
of
Changes
in
Net
Assets
(Unaudited)
See
notes
to
financial
statements.
Victory
Pioneer
Select
Mid
Cap
Growth
VCT
Portfolio
Six
Months
Ended
June
30,
2026
(Unaudited)
Year
Ended
December
31,
2025*
From
Investment
Activities:
Operations:
Net
Investment
Income
(Loss)
$
(
181‌
)
$
(
136‌
)
Net
realized
gains
(losses)
13,690‌
14,619‌
Net
change
in
unrealized
appreciation/depreciation
11,847‌
3,897‌
Change
in
net
assets
resulting
from
operations
25,356‌
18,380‌
Change
in
net
assets
resulting
from
distributions
to
shareholders
(
15,228‌
)
(
10,733‌
)
Change
in
net
assets
resulting
from
capital
transactions
7,091‌
(
1,227‌
)
Change
in
net
assets
17,219‌
6,420‌
Net
Assets:
Beginning
of
period
101,674‌
95,254‌
End
of
period
$
118,893‌
$
101,674‌
Capital
Transactions:
Proceeds
from
shares
issued
$
1,398‌
$
4,585‌
Distributions
reinvested
15,228‌
10,733‌
Cost
of
shares
redeemed
(
9,535‌
)
(
16,545‌
)
Change
in
net
assets
resulting
from
capital
transactions
$
7,091‌
$
(
1,227‌
)
Share
Transactions:
Issued
45‌
161‌
Reinvested
480‌
408‌
Redeemed
(
303‌
)
(
594‌
)
Change
in
Shares
222‌
(
25‌
)
*
Pioneer
Select
Mid
Cap
Growth
VCT
Portfolio
(the
“Predecessor
Fund”)
reorganized
with
the
Fund
effective
April
1,
2025
(the
“Reorganization”).
The
Predecessor
Fund
is
the
accounting
survivor
of
the
Reorganization
and
shareholders
holding
Class
I
shares
of
the
Predecessor
Fund
received
Class
I
shares
of
the
Fund,
respectively.
Victory
Variable
Insurance
Funds
II
Financial
Highlights
For
a
Share
Outstanding
Throughout
Each
Period
8
See
notes
to
financial
statements.
NOTE:
The
above
financial
highlights
do
not
reflect
the
deduction
of
non-fund
expenses
associated
with
variable
insurance
products,
such
as
mortality
and
expense
risk
charges,
separate
account
charges,
and
sales
charges.
Victory
Pioneer
Select
Mid
Cap
Growth
VCT
Portfolio
*
Six
Months
Ended
June
30,
2026
(Unaudited)
Year
Ended
December
31,
2025
Year
Ended
December
31,
2024
Year
Ended
December
31,
2023
Year
Ended
December
31,
2022
Year
Ended
December
31,
2021
Net
Asset
Value,
Beginning
of
Period
$29.33
$27.29
$22.02
$18.54
$34.90
$37.52
Investment
Activities:
Net
investment
income
(loss)(a)
(0.05)
(0.04)
(0.12)
(0.04)
(0.06)
(0.23)
Net
realized
and
unrealized
gains
(losses)
7.67
5.26
5.39
3.52
(11.15)
3.17
Total
from
Investment
Activities
7.62
5.22
5.27
3.48
(11.21)
2.94
Distributions
to
Shareholders
from:
Net
realized
gains
(4.71)
(3.18)
—
—
(5.15)
(5.56)
Total
Distributions
(4.71)
(3.18)
—
—
(5.15)
(5.56)
Net
Asset
Value,
End
of
Period
$32.24
$29.33
$27.29
$22.02
$18.54
$34.90
Total
Return(b)(c)
26.26%
20.47%
23.93%
18.77%(d)
(31.06)%
8.07%
Ratios
to
Average
Net
Assets:
Net
Expenses(e)(f)
0.86%
0.85%
0.86%
0.92%
0.87%
0.89%
Net
Investment
Income
(Loss)(e)
(0.34)%
(0.14)%
(0.48)%
(0.19)%
(0.25)%
(0.62)%
Gross
Expenses(e)(f)
0.87%
0.85%
0.86%
0.92%
0.87%
0.89%
Supplemental
Data:
Net
Assets
at
end
of
period
(000's)
$118,893
$101,674
$95,254
$88,858
$86,108
$140,893
Portfolio
Turnover(b)(g)
39%
63%
53%
74%
84%
41%
*
Pioneer
Select
Mid
Cap
Growth
VCT
Portfolio
(the
“Predecessor
Fund”)
reorganized
with
the
Fund
effective
April
1,
2025
(the
“Reorganization”).
The
Predecessor
Fund
is
the
accounting
survivor
of
the
Reorganization
and
shareholders
holding
Class
I
shares
of
the
Predecessor
Fund
received
Class
I
shares
of
the
Fund.
(a)
Per
share
net
investment
income
(loss)
has
been
calculated
using
the
average
daily
shares
method.
(b)
Not
annualized
for
periods
less
than
one
year.
(c)
Assumes
reinvestment
of
all
net
investment
income
and
realized
capital
gain
distributions,
if
any,
during
the
period.
Includes
adjustments
in
accordance
with
U.S.
Generally
Accepted
Accounting
Principles
and
could
differ
from
the
reported
return.
(d)
If
the
Portfolio
had
not
recognized
gains
in
settlement
of
class
action
lawsuits
during
the
year
ended
December
31,
2023,
the
total
return
would
have
been
18.72%.
(e)
Annualized
for
periods
less
than
one
year.
(f)
Does
not
include
acquired
fund
fees
and
expenses,
if
any.
(g)
Portfolio
turnover
is
calculated
on
the
basis
of
the
Fund
as
a
whole
without
distinguishing
between
the
classes
of
shares.
Notes
to
Financial
Statements
June
30,
2026
Victory
Variable
Insurance
Funds
II
9
(Unaudited)
1.
Organization:
Victory
Variable
Insurance Funds
II
(the
“Trust”)
is
organized
as
a
Delaware
statutory
trust
and
is
registered
under
the Investment
Company
Act
of
1940,
as
amended
(the
“1940
Act”),
as
an
open-end
investment
company.
The
Trust
is
comprised
of seven funds
and
is
authorized
to
issue
an
unlimited
number
of
shares,
which
are
units
of
beneficial
interest
with a
par
value
of
$0.001
per
share.
The
Fund's
shares
are
only
available
for
purchase
by
insurance
companies
for
funding
variable
annuity
and
variable
life
insurance
contracts
or
by
qualified
pension
and
retirement
plans.
The
accompanying
financial
statements
are
those
of
the
following
fund
(the
"Fund").
The
fund
is
classified
as
diversified
under
the
1940
Act.
Victory
Capital
Management
Inc.
(“VCM”
or
the
“Adviser”)
is
an
indirect
wholly
owned
subsidiary
of
Victory
Capital
Holdings,
Inc.,
a
publicly
traded
Delaware
corporation,
and
a
wholly
owned
direct
subsidiary
of
Victory
Capital
Operating,
LLC.
Under
the
Trust’s
organizational
documents,
its
officers
and
trustees
are
indemnified
against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Fund.
In
addition,
in
the
normal
course
of
business,
the
Fund
enters
into
contracts
with
its
vendors
and
others
that
provide
for
general
indemnifications.
The
Fund’s
maximum
exposure
under
these
arrangements
is
unknown,
as
this
would
involve
future
claims
that
may
be
made
against
the
Fund.
However,
based
on
experience,
the
Fund
expects
that
risk
of
loss
to
be
remote.
The Fund,
which
commenced
operations
on
April
1,
2025,
is
the
successor
to
the
Pioneer Select
Mid
Cap Growth
VCT
Portfolio
(the
“Predecessor
Fund”).
The
Predecessor Fund
transferred
all
of
the
net
assets
of
Class
I
shares
in
exchange
for
the
Fund’s
Class
I
shares
on
April
1,
2025
pursuant
to
an
agreement
and
plan
of
reorganization
(the
“Reorganization”)
which
was
approved
by
the
shareholders
of
the
Predecessor Fund
on
March
27,
2025.
The
Reorganization
was
structured
so
that
the
transfer
of
assets
and
liabilities
did
not
result
in
federal
tax
liability
to
the
Predecessor
Fund or
its
shareholders.
Shareholders
holding
Class
I shares
of
the
Predecessor Fund
received
Class
I
shares
of
the
Fund
in
the
Reorganization.
The
Predecessor Fund
was
the
accounting
survivor
of
the
Reorganization.
Accordingly,
the
Predecessor
Fund’s
performance
and
financial
history
have
become
the
performance
and
financial
history
of
the
Fund.
The
Fund’s
investment
objective
is
to seek
Long-term
capital
growth.
Effective
April
1,
2025, VCM
serves
as
the
Fund’s
investment
adviser,
succeeding
Amundi
Asset
Management
US,
Inc.
(“Amundi
US”).
On
the
same
date,
Victory
Capital
Services,
Inc.
(the
“Distributor”),
an
affiliate
of
the
Adviser,
became
the
Distributor
for
the
Fund's
shares,
succeeding
Amundi
Distributor
US,
Inc.
The
Distributor
receives
no
fee
or
other
compensation
for
these
services
(See
Note
4).
On
September
30,
2025,
the
Trust’s
Board
of
Trustees
(the
“Board”),
upon
the
recommendation
of
the
Adviser,
approved
a
change
in
the
Fund's
custodian,
sub-administrator,
sub-fund
accountant,
and
transfer
agent.
Effective
as
of
February
9,
2026, Citibank,
N.A.
serves
as
the
custodian
of
the
Fund,
Citi
Fund
Services
Ohio,
Inc.
serves
as
sub-administrator
and
sub-fund
accountant
of
the
Fund
and
FIS
Investor
Services
LLC
serves
as
transfer
agent
of
the
Fund.
2.
Significant
Accounting
Policies:
The
following
is
a
summary
of
significant
accounting
policies
followed
by
the Fund
in
the
preparation
of
its
financial
statements.
The
policies
are
in
conformity
with
U.S.
Generally
Accepted
Accounting
Principles
(“GAAP”).
The
preparation
of
financial
statements
in
accordance
with
GAAP
requires
the
Adviser
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
and
disclosure
of
contingent
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
reported
amounts
of
income
and
expenses
for
the
period.
Actual
results
could
differ
from
those
estimates.
The
Fund
follows
the
specialized
accounting
and
reporting
requirements
under
GAAP
that
are
applicable
to
investment
companies
under
Accounting
Standards
Codification
(“ASC”)
Topic 946.
Investment
Valuation: 
The
Fund
records
investments
at
fair
value.
Fair
value
is
defined
as
the
price
that
would
be
received
to sell
an asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
at
the
measurement
date.
The
valuation
techniques
described
below
maximize
the
use
of
observable
inputs
and
minimize
the
use
of
unobservable
inputs
in
determining
fair
value.
The
inputs
used
for
valuing
the
Fund’s
investments
are
summarized
in
the
three
broad
levels
listed
below:
Level
1
—
quoted
prices
(unadjusted)
in
active
markets
for
identical
securities
Level
2
—
other
significant
observable
inputs
(including
quoted
prices
for
similar
securities,
interest
rates,
or
credit
spreads,
applicable
to
those
securities,
etc.)
Level
3
—
significant
unobservable
inputs
(including
the
Adviser’s
assumptions
in
determining
the
fair
value
of
investments)
Changes
in
valuation
techniques
may
result
in
transfers
in
or
out
of
an
assigned
level
within
the
disclosure
hierarchy.
The
inputs
or
methodologies
used
for
valuation
techniques
are
not
necessarily
an
indication
of
the
risks
associated
with
entering
into
those
investments.
The Adviser,
appointed
as
the
valuation
designee
by the
Trust's
Board
of
Trustees
(the
“Board”), has
established
the
Pricing
Committee
(the
“Committee”),
and
subject
to
Board
oversight,
the
Committee
administers
and
oversees
the
Fund’s
valuation
policies
and
procedures,
which
are
approved
by
the
Board.
Fund
(Legal
Name)
Fund
(Short
Name)
Investment
Share
Class
Offered
Victory
Pioneer
Select
Mid
Cap
Growth
VCT
Portfolio
Select
Mid
Cap
Growth
VCT
Portfolio
Class
I
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
10
(Unaudited)
Portfolio
securities
listed
or
traded
on
securities
exchanges,
including
Exchange-Traded
Funds
(“ETFs”)
and
American
Depositary
Receipts,
are
valued
at
the
last
sale
price
on
the
exchange
or
system
where
the
security
is
principally
traded,
if
available,
or
at
the
Nasdaq
Official
Closing
Price.
If
there
have
been
no
sales
for
that
day
on
the
exchange
or
system,
then
a
security
is
valued
at
the
closing mean
if
available,
otherwise
the
bid
quotation
on
the
exchange
or
system
where
the
security
is
principally
traded.
In
each
of
these
situations,
valuations
are
typically
categorized
as
Level
1
in
the
fair
value
hierarchy.
Investments
in
open-end
investment
companies,
other
than
ETFs, are
valued
at their
net
asset
value
(“NAV”).
These
valuations
are
typically
categorized
as
Level
1 in
the
fair
value
hierarchy.
In
the
event
that
price
quotations
or
valuations
are
not
readily
available,
investments
are
valued
at
fair
value
in
accordance
with
procedures
established
by
and
under
the
general
supervision
and
responsibility
of
the
Board.
These
valuations
are
typically
categorized
as
Level
2
or
Level
3
in
the
fair
value
hierarchy,
based
on
the
observability
of
inputs
used
to
determine
the
fair
value.
The
effect
of
fair
value
pricing
is
that
securities
may
not
be
priced
on
the
basis
of
quotations
from
the
primary
market
in
which
they
are
traded
and
the
actual
price
realized
from
the
sale
of
a
security
may
differ
materially
from
the
fair
value
price.
Valuing
these
securities
at
fair
value
is
intended
to
cause
the
Fund’s
net
asset
value to
be
more
reliable
than
it
otherwise
would
be.
The
principal
exchanges
and
markets
for
non-U.S.
equity
securities
have
closing
times
prior
to
the
close
of
the
New
York
Stock
Exchange.
However,
the
value
of
these
securities
may
be
influenced
by
changes
in
global
markets
occurring
after
the
closing
times
of
the
local
exchanges
and
markets
up
to
the
time
the
Fund
determines
its
net
asset
value.
Consequently,
the
Fund
uses
a
fair
value
model
developed
by
an
independent
pricing
service
to
value
non-U.S.
equity
securities.
On
a
daily
basis,
the
pricing
service
recommends
changes,
based
on
a
proprietary
model,
to
the
closing
market
prices
of
each
non-U.S.
security
held
by
the
Fund
to
reflect
the
security’s
fair
value
at
the
time
the
Fund
determines
its
net
asset
value.
These
recommendations
are
applied
in
accordance
with
the
Adviser’s
(the
valuation
designee’s)
valuation
procedures.
These
valuations
are
typically
categorized
as
Level
2
in
the
fair
value
hierarchy.
A
summary
of
the
valuations
as
of
June
30,
2026, based
upon
the
three
levels
defined
above,
is
included
in
the
table
below
while
the
breakdown,
by
category,
of
investments
is
disclosed
on
the
Schedule
of
Portfolio
Investments
(amounts
in
thousands):
As
of June
30,
2026,
there
were
no
significant transfers
into/out
of
Level
3.
Real
Estate
Investment
Trusts
(“REITs”):
The
Fund
may
invest
in
REITs,
which
report
information
on
the
source
of
their
distributions
annually.
REITs
are
pooled
investment
vehicles
that
invest
primarily
in
income-producing
real
estate
or
real
estate
related
loans
or
interests
(such
as
mortgages).
Certain
distributions
received
from
REITs
will
be
reclassified
to
realized
gains
or
return
of
capital
as
estimated
by
the
Fund
based
on
calendar
year-end
information
as
it
becomes
known
or
available.
Investment
Companies:
Open-End
Funds:
The
Fund
may
invest
in
portfolios
of
open-end
investment
companies.
These
investment
companies
value
securities
in
their
portfolios
for
which
market
quotations
are
readily
available
at
their
market
values
(generally
the
last
reported
sale
price)
and
all
other
securities
and
assets
at
their
fair
value
by
the
methods
established
by
the
board
of
directors
of
the
underlying
funds.
Securities
Lending:
Effective
May
8,
2026,
the
Fund,
through
a
Securities
Lending
Agreement
with
Citibank,
N.A.
(“Citibank”),
may
lend
its
securities
to
qualified
financial
institutions,
such
as
certain
broker-dealers
and
banks,
to
earn
additional
income,
net
of
income
retained
by
Citibank.
Borrowers
are
required
to
initially
secure
their
loans
for
collateral
in
the
amount
of
at
least
102%
of
the
value
of
U.S.
securities
loaned
or
at
least
105%
of
the
value
of
non-U.S.
securities
loaned,
marked-to-market
daily.
Any
collateral
shortfalls
associated
with
increases
in
the
valuation
of
the
securities
loaned
are
generally
cured
the
next
business
day.
The
collateral
can
be
received
in
the
form
of
cash
collateral
and/or
non-cash
collateral.
Non-
cash
collateral
can
include
U.S.
Government
Securities
and
other
securities
as
permitted
by
Securities
and
Exchange
Commission
(“SEC”)
guidelines.
The
cash
collateral
is
invested
in
short-term
instruments
or
cash
equivalents,
primarily
open-end
investment
companies,
as
noted
on
the
Fund’s
Schedule
of
Portfolio
Investments.
The
Fund
effectively
does
not
have
control
of
the
non-cash
collateral
and
therefore
it
is
not
disclosed
on
the
Fund’s
Schedule
of
Portfolio
Investments.
Collateral
requirements
are
determined
daily
based
on
the
value
of
the
Fund’s
securities
on
loan
as
of
the
end
of
the
prior
business
day.
During
the
time
portfolio
securities
are
on
loan,
the
borrower
will
pay
the
Fund
any
dividends
or
interest
paid
on
such
securities
plus
any
fee
negotiated
between
the
parties
to
the
lending
agreement.
The
Fund
also
earns
a
return
from
the
collateral.
The
Fund
pays
Citibank
various
fees
in
connection
with
the
investment
of
cash
collateral
and
fees
based
on
the
investment
income
received
from
securities
lending
activities.
Securities
lending
income
(net
of
these
fees)
is
disclosed
on
the
Statement
of
Operations.
Loans
are
terminable
upon
demand
and
the
borrower
must
return
the
loaned
securities
within
the
lesser
of
one
standard
settlement
period
or
five
business
days.
Although
risk
is
mitigated
by
the
collateral,
the
Fund
could
experience
a
delay
in
recovering
its
securities
and
possible
loss
of
Level
1
Level
2
Level
3
Total
Select
Mid
Cap
Growth
VCT
Portfolio
Common
Stocks
...............................................
$
118,172
$
—
$
—
$
118,172
Total
.......................................................
$
118,172
$
—
$
—
$
118,172
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
11
(Unaudited)
income
or
value
if
the
borrower
fails
to
return
them.
In
addition,
there
is
a
risk
that
the
value
of
the
short-term
investments
will
be
less
than
the
amount
of
cash
collateral
required
to
be
returned
to
the
borrower.
The
Fund's
agreement
with
Citibank
does
not
include
master
netting
provisions.
Non-cash
collateral
received
by
the
Fund
may
not
be
sold
or
repledged,
except
to
satisfy
borrower
default.
As
of
June
30,
2026,
the
Fund
did
not
have
any
securities
on
loan.
Investment
Transactions
and
Related
Income:
Investment
transactions
are
recorded
on
trade
date.
For
financial
reporting
purposes,
however,
investment
transactions
are
accounted
for
on
trade
date
or
the
last
business
day
of
the
reporting
period.
 Dividend
income
is
recorded
on
the
ex-dividend
date.
Non-cash
dividends
included
in
income,
if
any,
are
recorded
at
the
fair
value
of
the
securities
received.
Gains
or
losses
realized
on
sales
of
securities
are
recorded
on
the
identified
cost
basis. Interest
income
is
accrued
daily
and
recorded
using
the
effective
interest
method,
which
includes
the
amortization
of
premiums
and
accretion
of
discounts
on
debt
securities.
Withholding
taxes
on
foreign
dividends,
interest,
and
capital
gains
have
been
provided
for
in
accordance
with
the
applicable
tax
rules
and
rates
of
each
respective
country.
Foreign
Currency
Translations:
The
accounting
records
of
the
Fund
are
maintained
in
U.S.
dollars.
Investment
securities
and
other
assets
and
liabilities
of the
Fund
denominated
in
a
foreign
currency
are
translated
into
U.S.
dollars
at
current
exchange
rates.
Purchases
and
sales
of
securities,
income
receipts,
and
expense
payments
are
translated
into
U.S.
dollars
at
the
exchange
rates
on
the
date
of
the
transactions.
The
Fund
does
not
isolate
the
portion
of
the
results
of
operations
resulting
from
changes
in
foreign
exchange
rates
on
investments
from
fluctuations
arising
from
changes
in
market
prices
of
securities
held.
Such
fluctuations,
if
any,
are
disclosed
as
Net
change
in
unrealized
appreciation/depreciation
on investment
securities
and
foreign
currency
translations
on
the
Statement
of
Operations.
Realized
gains
or
losses
from
these
fluctuations,
if
any,
are
disclosed
as
Net
realized
gains
(losses)
from
investment
securities
and
foreign
currency
transactions
on
the
Statement
of
Operations.
Federal
Income
Taxes:
The
Fund
intends
to
continue
to
qualify
as
a
regulated
investment
company
by
complying
with
the
provisions
available
to
certain
investment
companies,
as
defined
in
applicable
sections
of
the
Internal
Revenue
Code,
and
to
make
distributions
of
net
investment
income
and
net
realized
gains
sufficient
to
relieve
it
from
all,
or
substantially
all,
federal
income
taxes.
Accordingly,
no
provision
for
federal
income
taxes
is
required
in
the
financial
statements.
The
Fund
has
a
tax
year
end
of December
31.
For
the
six
months
ended
June
30,
2026,
the
Fund
did
not
incur
any
income
tax,
interest,
or
penalties,
and
has
recorded
no
liability
for
net
unrecognized
tax
benefits
relating
to
uncertain
tax
positions.
Management
of
the
Fund
has
reviewed
tax
positions
taken
in
tax
years
that
remain
subject
to
examination
by
all
major
tax
jurisdictions,
including
federal
(i.e.,
the
last
four
tax
years,
which
includes
the
current
fiscal
tax
year
end).
Management
believes
that
there
is
no
tax
liability
resulting
from
unrecognized
tax
benefits
related
to
uncertain
tax
positions
taken.
Foreign
Taxes:
The
Fund
may
be
subject
to
foreign
taxes
related
to
foreign
income
received
(a
portion
of
which
may
be
reclaimable),
capital
gains
on
the
sale
of
securities,
and
certain
foreign
currency
transactions.
All
foreign
taxes
are
recorded
in
accordance
with
the
applicable
regulations
and
rates
that
exist
in
the
foreign
jurisdictions
in
which
the
Fund
invests.
Allocations:
Expenses
directly
attributable
to the
Fund
are
charged
to the
Fund,
while
expenses
that
are
attributable
to
more
than
one
fund
in
the
Trust,
or
jointly
with
an
affiliated
trust,
are
allocated
among
the
respective
funds
in
the
Trust
and/or
an
affiliated
trust
based
upon
net
assets
or
another
appropriate
basis.
Income,
expenses
(other
than
class-specific
expenses
such
as
transfer
agent
fees,
state
registration
fees,
printing
fees,
and
12b-1
fees),
and
realized
and
unrealized
gains
or
losses
on
investments
are
allocated
to
each
class
of
shares
based
on
its
relative
net
assets
on
the
date
income
is
earned
or
expenses
and
realized
and
unrealized
gains
and
losses
are
incurred.
Fees
Paid
Indirectly:
Expense
offsets
to
custody
fees
that
arise
from
credits
on
cash
balances
maintained
on
deposit
are
reflected
on
the
Statement
of
Operations,
as
applicable,
as
Fees
paid
indirectly.
3.
Purchases
and
Sales:
Purchases
and sales
of
securities
(excluding
securities
maturing
less
than
one
year
from
acquisition)
for
the
six
months
ended
June
30,
2026,
were
as
follows
(amounts
in
thousands):
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
12
(Unaudited)
4.
Fees
and
Transactions
with
Affiliates
and
Related
Parties:
Investment
Advisory
Fees: 
Investment
advisory
services
are
provided
to
the
Fund
by
the
Adviser,
which
is
a
New
York
corporation
registered
as
an
investment
adviser
with
the
SEC.
Under
the
terms
of
the
Investment
Advisory
Agreement,
the
Adviser
is
entitled
to
receive
fees
accrued
daily
and
paid
monthly
at
an
annualized
rate
of
0.74%
of
the
Fund’s
average
daily
net
assets.
Amounts
incurred
and
paid
to
VCM
for
the
six
months
ended
June
30,
2026,
are
reflected
on
the
Statement
of
Operations
as
Investment
advisory
fees.
Administration
and
Servicing
Fees:
VCM
also
serves
as
the
Fund’s
administrator
and
fund
accountant.
Under
the Administration
and
Fund
Accounting
Agreement,
VCM
is
paid
an
administration
fee
based
on
a
percentage
of
the
average
daily
net
assets
of
all
Companies
and
Funds
(as
defined
in
the
Administration
and
Fund
Accounting
Agreement)
together
with
all
other
registered
investment
companies
for
which
VCM
acts
as
administrator,
and allocated
to the
Fund
on
a
pro
rata
basis
calculated
based
on
the
Fund’s
average
daily
net
assets.
The
tiered
rates
at
which
VCM
is
paid
by
the
Fund
are
shown
in
the
table
below:
Amounts
incurred
for
the
six
months
ended
June
30,
2026,
are
reflected
on
the
Statement
of
Operations
as
Administration
fees.
Effective
February
9,
2026,
Citi
Fund
Services
Ohio,
Inc.
(“Citi”),
an
affiliate
of
Citibank,
acts
as
sub-administrator
and
sub-fund
accountant
to
the
Fund
pursuant
to
a
Sub-Administration
and
Sub-Fund
Accounting
Services
Agreement
between
VCM
and
Citi.
VCM
pays
Citi
a
fee
for
providing
these
services.
The
Fund
reimburses
VCM
and
Citi
for
out-of-pocket
expenses
incurred
in
providing
these
services,
including
costs
associated
with
the
Chief
Compliance
Officer,
and
implementing
new
reports
required
by
new
rules
adopted
by
the
SEC
under
the
1940
Act.
Prior
to
February
9,
2026,
BNY
Mellon
served
as
sub-administrator
and
sub-fund
accountant
for
the
Fund.
The
total
amounts
incurred
and
paid
for the six
months
ended June
30,
2026,
are
reflected
within
the
Sub-Administration
fees
on
the
Statement
of
Operations.
Transfer
Agency
Fees:
Effective February
9,
2026,
FIS
Investor
Services
LLC
serves
as
the
Fund’s
transfer
agent.
Under
the
Transfer
Agent
Agreement,
the
Trust
pays
FIS
a
fee
for
its
services
and
reimburses
FIS
for
all
of its
reasonable
out-of-pocket
expenses
incurred
in
providing
these
services.
Prior
to February
9,
2026,
BNY
Mellon
Investment
Servicing
(US)
Inc.
served
as
the
transfer
agent
to
the
Fund at
negotiated
rates
where
transfer
agent
fees
included
sub-transfer
agent
expenses
incurred
through
the
Fund’s
omnibus
relationship
contracts.
In
addition,
the
Fund
would
reimburse
out-of-pocket
expenses
incurred
by
the
former
transfer
agent
related
to
shareholder
communications
activities
such
as
proxy
and
statement
mailings,
and
outgoing
phone
calls.
Total
transfer
agent
fees
incurred
for
the
six
months ended
June
30,
2026,
are
reflected
on
the
Statement
of
Operations
as
Transfer
agent
fees.
Sub-Transfer
Agency
Fees:
Effective
February
9,
2026,
the
Fund
has
entered
into
Sub-Transfer
Agency
Agreements
with
financial
intermediaries
that
provide
recordkeeping,
processing,
shareholder
communications
and
other
services
to
customers
of
the
intermediaries
that
hold
positions
in
the
Fund
and
have
agreed
to
compensate
the
intermediaries
for
providing
those
services.
Intermediaries
transact
with
the
Fund
primarily
through
the
use
of
omnibus
accounts
on
behalf
of
their
customers
who
hold
positions
in
the
Fund.
These
services
would
have
been
provided
by
the
Fund’s
transfer
agent
and
other
service
providers
if
the
shareholders'
accounts
were
maintained
directly
at
the
Fund's
transfer
agent.
Prior
to
February
9,
2026,
BNY
Mellon
served
as
sub-transfer
agent.
Total
sub-transfer
agent
fees
incurred
for
the six
months
ended
June
30,
2026,
are
reflected
on
the
Statement
of
Operations
as
Sub-Transfer
agent
fees.
Distributor/Underwriting
Services:
Victory
Capital
Services, Inc.
(the
“Distributor”),
an
affiliate
of
the
Adviser,
serves
as
Distributor
for
the
continuous
offering
of
the
shares
of
the
Fund
pursuant
to
a
Distribution
Agreement
between
the
Distributor
and
the
Trust.
Excluding
U.S.
Government
Securities
Purchases
Sales
Select
Mid
Cap
Growth
VCT
Portfolio
...........................................................
$
656,476
$
398,186
Annual
Charge
Up
to
$15
billion
Over
$15
billion
-
$30
billion
Over
$30
billion
-
$85
billion
Over
$85
billion
Select
Mid
Cap
Growth
VCT
Portfolio
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
0.08%,
plus
0.05%,
plus
0.04%,
plus
0.03%
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
13
(Unaudited)
Other
Fees:
Effective
February
9,
2026,
Citibank
serves
as
the
Fund's
custodian.
The
Fund
pays
Citibank
a
fee
for
providing
these
services.
Prior
to
February
9,
2026,
BNY
Mellon
served
as
the
Fund's
custodian. Total
custodian
fees
incurred
for
the
period ended
June
30,
2026, are
reflected
on
the
Statement
of
Operations
as
Custodian
fees.
Sidley
Austin
LLP
provides
legal
services
to
the
Trust.
The
Adviser
has
entered
into
an
expense
limitation
agreement
with the Fund.
Under
the
terms
of
the
agreement,
the
Adviser
has
agreed
to
waive
fees
or
reimburse
certain
expenses
to
the
extent
that
ordinary
operating
expenses
incurred
in
any
fiscal
year
exceed
the
expense limits
for the
Fund.
Such
excess
amounts
will
be
the
liability
of
the
Adviser. Acquired
fund
fees
and
expenses,
interest,
taxes,
brokerage
commissions,
other
expenditures which
are
capitalized
in
accordance
with
GAAP,
and
other
extraordinary
expenses
not
incurred
in
the
ordinary
course
of the
Fund’s
business
are
excluded
from
the
expense
limits.
As
of
June
30,
2026,
the
expense
limit
(excluding
voluntary
waivers) were
as
follows:
Under
the
terms
of
the
expense
limitation
agreement,
the
Fund
has
agreed
to
repay
fees
and
expenses
that
were
waived
or
reimbursed
by
the
Adviser
for
a
period
of
up
to two
years
(twenty-four
(24)
months)
after
the
waiver
or
reimbursement
took
place,
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
Fund
has
not
recorded
any
amounts
available
to
be
repaid
to
the
Adviser
as
a
commitment
and
contingency
liability
due
to
an
assessment
that
such
repayments
are
not
probable
at
June
30,
2026.
The
dates
in
the
table
below
represent
the
fiscal
year-end
in
which
the
24-month
recoupment
period
expires.
As
of
June
30,
2026,
these
amounts
are
available
to
be
repaid
to
the
Adviser
(amounts
in
thousands):
The
Adviser
may
voluntarily
waive
or
reimburse
additional
fees
and
expenses
or
make
other
payments to
assist
the
Fund
in
maintaining
competitive
expense
ratios.
Except
as
noted
above,
voluntary
waivers
and
reimbursements
applicable
to
the
Fund
are
not
available
to
be
recouped
at
a
future
time.
There
were
no
voluntary
waivers
or
reimbursements
for
the six
months
ended
June
30,
2026.
Certain
officers
and/or
interested
trustees
of
the
Fund
are
also
officers
and/or
employees
of
the
Adviser,
administrator,
fund
accountant,
legal
counsel,
and
Distributor.
5.
Risks:
The
following
describes
principal
risks
that
you
may
assume
as
an
investor
in
the
Fund.
The
Fund’s
prospectus
contains
unaudited
information
regarding
the
Fund’s
principal
risks.
Please
refer
to
that
document
when
considering
the
Fund’s
principal
risks.
The
Fund
may
be
subject
to
other
risks
in
addition
to
these
identified
risks.
Market
Risk
—
The
market
prices
of
securities
or
other
assets
held
by
the
Fund
may
go
up
or
down,
sometimes
rapidly
or
unpredictably,
due
to
general
market
conditions,
such
as
real
or
perceived
adverse
economic,
political,
or
regulatory
conditions,
political
instability,
recessions,
inflation,
changes
in
interest
or
currency
rates,
lack
of
liquidity
in
the
markets,
the
spread
of
infectious
illness
or
other
public
health
issues,
weather
or
climate
events,
armed
conflict,
market
disruptions
caused
by
tariffs,
trade
disputes,
sanctions
or
other
government
actions,
or
other
factors
or
adverse
investor
sentiment.
If
the
market
prices
of
the
Fund’s
securities
and
assets
fall,
the
value
of
your
investment
will
go
down.
A
change
in
financial
condition
or
other
event
affecting
a
single
issuer
or
market
may
adversely
impact
securities
markets
as
a
whole.
Risks
of
Non-U.S.
Investments
—
Investing
in
non-U.S.
issuers,
or
in
U.S.
issuers
that
have
significant
exposure
to
foreign
markets,
may
involve
unique
risks
compared
to
investing
in
securities
of
U.S.
issuers.
These
risks
are
more
pronounced
for
issuers
in
emerging
markets
or
to
the
extent
that
the
Fund
invests
significantly
in
one
region
or
country.
These
risks
may
include
different
financial
reporting
practices
and
regulatory
standards,
less
liquid
trading
markets,
extreme
price
volatility,
currency
risks,
changes
in
economic,
political,
regulatory
and
social
conditions,
military
conflicts
and
sanctions,
terrorism,
sustained
economic
downturns,
financial
instability,
reduction
of
government
or
central
bank
support,
inadequate
accounting
standards,
auditing
and
financial
recordkeeping
requirements,
tariffs,
tax
disputes
or
other
tax
burdens,
nationalization
or
expropriation
of
assets,
arbitrary
application
of
laws
and
regulations
or
lack
of
rule
of
law,
and
investment
and
repatriation
restrictions.
Investors
in
foreign
countries
often
have
limited
rights
and
few
practical
remedies
to
pursue
shareholder
claims.
Lack
of
information
and
less
market
regulation
also
may
affect
the
value
of
these
securities.
Dividends
and
interest
received
by
the
Fund
and
capital
gains
recognized
by
the
Fund
may
give
rise
to
withholding
and
other
taxes
imposed
by
foreign
countries
and
may
decrease
the
Fund’s
return.
Non-U.S.
issuers
may
be
located
in
parts
of
the
world
that
have
historically
been
prone
to
natural
disasters.
Emerging
market
economies
tend
to
be
less
diversified
than
those
of
more
developed
countries.
They
typically
have
fewer
medical
and
economic
resources
than
more
developed
countries
and
thus
they
may
be
less
able
to
control
or
mitigate
the
effects
of
a
pandemic.
Investing
in
depositary
receipts
is
subject
to
many
of
the
In
effect
until
April
1,
2028
Class
I
Select
Mid
Cap
Growth
VCT
Portfolio
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
0.86%
December
31,
2028
Total
Select
Mid
Cap
Growth
VCT
Portfolio
..............................................................
$
6
$
6
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
14
(Unaudited)
same
risks
as
investing
directly
in
non-U.S.
issuers.
Depositary
receipts
may
involve
higher
expenses
and
may
trade
at
a
discount
(or
premium)
to
the
underlying
security.
Geographic
Focus Risk
—
To
the
extent
the
Fund
focuses
its
investments
in
issuers
located
in
a
particular
country
or
region,
the
Fund
is
subject
to
greater
risks
of
volatile
economic
cycles
and/or
conditions
and
developments
that
may
be
particular
to
that
country
or
region.
For
example,
the
Fund
may
be
subject
to
greater
risk
of
adverse
securities
markets,
exchange
rates,
social,
political,
regulatory,
economic,
business,
environmental
or
other
developments,
or
natural
disasters.
Currency
Risk
—
Because
the Fund
may
invest
in
non-U.S.
currencies,
securities
denominated
in
non-U.S.
currencies,
and
other
currency-
related
investments,
the
Fund
is
subject
to
currency
risk,
meaning
that
the
Fund
could experience
losses
based
on
changes
in
the
exchange
rate
between
non-U.S.
currencies
and
the
U.S.
dollar
or
as
a
result
of
currency
conversion
costs.
Currency
exchange
rates
can
be
volatile,
and
are
affected
by
factors
such
as
general
economic
conditions,
the
actions
of
the
U.S.
and
foreign
governments
or
central
banks,
the
imposition
of
currency
controls
and
speculation.
Value
Style Risk
—
The
prices
of
securities
the
Adviser
believes
are
undervalued
may
not
appreciate
as
expected
or
may
go
down.
Value
stocks
may
fall
out
of
favor
with
investors
and
underperform
the
overall
equity
market.
A
value
stock
may
not
increase
in
price
as
anticipated
by
the
Adviser
if
other
investors
fail
to
recognize
the
company’s
value
and
bid
up
the
price
or
the
factors
that
the
Adviser
believes
will
increase
the
price
of
the
security
do
not
occur
or
do
not
have
the
anticipated
effect.
6.
Interfund
Lending:
The
Trust
and
the
Adviser
rely
on
an
exemptive
order
granted
by
the
SEC
in
March
2017
(the
“Order”),
permitting
the
establishment
and
operation
of
an
Interfund
Lending
Facility
(the
“Facility”).
The
Facility
allows
the
Fund
to
directly
lend
and
borrow
money
to
or
from
any
other
fund
in
the
Victory
Funds
Complex
that
is
permitted
to
participate
in
the
Facility,
relying
upon
the
Order
at
rates
beneficial
to
both
the
borrowing
and
lending
funds.
Advances
under
the
Facility
are
allowed
for
temporary
or
emergency
purposes,
including
the
meeting
of
redemption
requests
that
otherwise
might
require
the
untimely
disposition
of
securities,
and
are
subject
to
each
Fund’s
borrowing
restrictions.
The
interfund
loan
rate
is
determined,
as
specified
in
the
Order,
by
averaging
the
current
repurchase
agreement
rate
and
the
current
bank
loan
rate.
As
a
Borrower
(as
defined
in
the
Order),
interest
charged
to
the
Fund,
if
any,
during
the
period,
is
reflected
on
the
Statement
of
Operations
under
Interfund
lending
fees.
As
a
Lender
(as
defined
in
the
Order),
interest
earned
by
the
Fund,
if
any,
during
the
period,
is
reflected
on
the
Statement
of
Operations
under
Interfund
lending.
The
Fund
did
not
utilize
or
participate
in
the
Facility
during
the
six
months
ended
June
30,
2026.
7.
Federal
Income
Tax
Information:
Distributions
from
the
Fund's
net
investment
income
are
accrued
daily
and
distributed
on
the
last
business
day
of
each
month.
Distributable
net
realized
gains,
if
any,
are
declared
and
paid
at
least
annually.
The
amounts
of
dividends
from
net
investment
income
and
distributions
from
net
realized
gains
(collectively,
distributions
to
shareholders)
are
determined
in
accordance
with
federal
income
tax
regulations,
which
may
differ
from
GAAP.
To
the
extent
these
“book/tax”
differences
are
permanent
in
nature
(e.g.,
net
operating
loss
and
distribution
reclassification),
such
amounts
are
reclassified
within
the
components
of
net
assets
based
on
their
federal
tax-basis
treatment;
temporary
differences
(e.g.,
wash
sales)
do
not
require
reclassification.
To
the
extent
dividends
and
distributions
exceed
net
investment
income
and
net
realized
gains
for
tax
purposes,
they
are
reported
as
distributions
of
capital.
Net
investment
losses
incurred
by
the
Fund
may
be
reclassified
as
an
offset
to
capital
on
the
accompanying
Statement
of
Assets
and
Liabilities.
The
tax
character
of
current
year
distributions
paid
and
the
tax
basis
of
the
current
components
of
accumulated
earnings
(losses)
will
be
determined
at
the
end
of
the
current
tax
year.
At
the
tax year
ended December
31,
2025,
the
Fund
had
no
capital
loss
carryforwards
for
federal
income
tax
purposes.
8.
Segment
Reporting:
The
Adviser’s
Management
Committee
acts
as
the
Fund’s
Chief
Operating
Decision
Maker
(“CODM”).
The
Fund
represents
a
single
operating
segment,
as
the
CODM
monitors
the
operating
results
of
the
Fund
as
a
whole
and
the
Fund’s
long-term
strategic
asset
allocation
is
predetermined
in
accordance
with
the
Fund's
single
investment
objective.
The
financial
information
in
the
form
of
the
Fund’s
portfolio
composition,
total
returns,
expense
ratios,
and
changes
in
net
assets,
which
are
used
by
the
CODM
to
assess
the
segment’s
performance
versus
the
Fund’s
comparative
benchmarks
and
to
make
resource
allocation
decisions
for
the
Fund’s
single
segment,
is
consistent
with
that
presented
within
the
Fund’s
financial
statements.
Segment
assets
are
reflected
on
the
accompanying
Statement
of
Assets
and
Liabilities
as
“total
assets”
and
significant
segment
expenses
are
listed
on
the
accompanying
Statement
of
Operations.
Victory
Funds
P.O.
Box
182593
Columbus,
Ohio
43218-2593
Visit
our
website
at:
vcm.com
Call
Victory
at:
(800)
539-3863
2341-0826
June
30,
2026
Semi-Annual:
Full
Financials
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Strategic
Income
VCT
Portfolio
TABLE
OF
CONTENTS
Victory
Variable
Insurance
Funds
II
1
The
Fund
is
distributed
by
Victory
Capital
Services,
Inc.
Victory
Capital
Management
Inc.
is
the
investment
adviser
to
the
Fund
and
receives
fees
from
the
Fund
for
performing
services
for
the
Fund.
This
report
is
not
authorized
for
distribution
to
prospective
investors
unless
preceded
or
accompanied
by
a
current
prospectus
of
the
Fund.
For
additional
information
about
any
Victory
Fund,
including
fees,
expenses,
and
risks,
view
our
prospectus
online
at
vcm.com
or
call
800-539-3863.
Read
it
carefully
before
you
invest
or
send
money.
The
information
in
this
report
is
based
on
data
obtained
from
recognized
services
and
sources
and
is
believed
to
be
reliable.
Any
opinions,
projections,
or
recommendations
in
this
report
are
subject
to
change
without
notice
and
are
not
intended
as
individual
investment
advice.
Past
investment
performance
of
the
Fund,
markets
or
securities
mentioned
herein
should
not
be
considered
to
be
indicative
of
future
results
•
NOT
FDIC
INSURED
•
NO
BANK
GUARANTEE
•
MAY
LOSE
VALUE
Schedule
of
Portfolio
Investments
(Form
N-CSR
Item
6)
2
Financial
Statements
(Form
N-CSR
Item
7)
Statement
of
Assets
and
Liabilities
15
Statement
of
Operations
16
Statements
of
Changes
in
Net
Assets
17
Financial
Highlights
19
Notes
to
Financial
Statements
(Form
N-CSR
Item
7)
21
Schedule
of
Portfolio
Investments
June
30,
2026
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Strategic
Income
VCT
Portfolio
2
(Unaudited)
See
notes
to
financial
statements.
Security
Description
Principal
Amount
(000)
a
Value
(000)
Asset-Backed
Securities
(4.3%)
ABS
Auto
(0.5%):
Exeter
Automobile
Receivables
Trust
,
Series
2024-3A
,
Class
D
,
5
.98
%
,
9/16/30
,
Callable
3/15/29
@
100
.....................................................
$
50
$
51
Merchants
Fleet
Funding
LLC
,
Series
2025-1A
,
Class
A
,
4
.49
%
,
1/20/39
,
Callable
3/20/29
@
100
(a)
...........................................................
100
100
151
ABS
Card
(0.1%):
Continental
Finance
Credit
Card
ABS
Master
Trust
,
Series
2022-A
,
Class
C
,
9
.33
%
,
10/15/30
(a)
.......................................................
47
47
ABS
Home
(0.4%):
Equifirst
Mortgage
Loan
Trust
,
Series
2003-1
,
Class
IF1
,
4
.01
%
,
12/25/32
,
Callable
7/25/26
@
100
(b)
...........................................................
12
11
GS
Mortgage-Backed
Securities
Trust
,
Series
2025-CES1
,
Class
A1A
,
5
.57
%
,
5/25/55
,
Callable
3/25/28
@
100
(a)
(b)
..........................................
61
61
Vista
Point
Securitization
Trust
,
Series
2024-CES1
,
Class
A1
,
6
.68
%
,
5/25/54
,
Callable
5/25/27
@
100
(a)
(b)
.......................................................
41
42
114
ABS
Other
(3.3%):
Amur
Equipment
Finance
Receivables
XII
LLC
,
Series
2023-1A
,
Class
D
,
7
.48
%
,
7/22/30
,
Callable
6/20/27
@
100
(a)
............................................
100
102
BHG
Securitization
Trust
,
Series
2022-C
,
Class
E
,
9
.73
%
,
10/17/35
,
Callable
12/17/28
@
100
(a)
...........................................................
100
105
Cascade
MH
Asset
Trust
,
Series
2021-MH1
,
Class
B1
,
4
.57
%
,
2/25/46
,
Callable
7/25/36
@
100
(a)
...........................................................
100
85
Cologix
Canadian
Issuer
LP
,
Series
2022-1CAN
,
Class
A2
,
4
.94
%
,
1/25/52
,
Callable
7/25/26
@
100
(a)
.........................................................
100
70
Crockett
Partners
Equipment
Co.
IIA
LLC
,
Series
2024-1C
,
Class
A
,
6
.05
%
,
1/20/31
,
Callable
4/20/29
@
100
(a)
...................................................
65
66
DataBank
Issuer
,
Series
2024-1A
,
Class
A2
,
5
.30
%
,
1/26/54
,
Callable
1/25/27
@
100
(a)
....
60
59
FIGRE
Trust
..........................................................
Series
2024-HE6
,
Class
A
,
5
.72
%
,
12/25/54
,
Callable
8/25/29
@
100
(a)
(b)
..........
104
104
Series
2025-HE5
,
Class
A
,
5
.29
%
,
8/25/55
,
Callable
2/25/28
@
100
(a)
(b)
...........
121
121
NMEF
Funding
LLC
,
Series
2022-B
,
Class
C
,
8
.54
%
,
6/15/29
,
Callable
8/15/26
@
100
(a)
...
100
100
PEAR
LLC
,
Series
2021-1
,
Class
B
,
1/15/34
(a)
(c)
(d)
.............................
86
89
Reach
ABS
Trust
,
Series
2026-1A
,
Class
A
,
4
.32
%
,
2/15/33
,
Callable
3/15/30
@
100
(a)
....
56
56
957
Total
Asset-Backed
Securities
(Cost
$1,277)
a
a
a
1,269
Collateralized
Loan
Obligations
(0.7%)
Cash
Flow
CLO
(0.7%):
AREIT
Ltd.
,
Series
2022-CRE6
,
Class
D
,
6
.46
%
(
SOFR30A
+
285
bps
)
,
1/20/37
,
Callable
2/17/27
@
100
(a)
(e)
.................................................
100
100
FS
Rialto
Issuer
LLC
,
Series
2025-FL10
,
Class
A
,
5
.02
%
(
TSFR1M
+
139
bps
)
,
8/19/42
,
Callable
8/19/27
@
100
(a)
(e)
(f)
........................................
100
100
200
Total
Collateralized
Loan
Obligations
(Cost
$200)
a
a
a
200
Collateralized
Mortgage
Obligations
(9.9%)
Agency
CMO
IO
(0.3%):
Federal
Home
Loan
Mortgage
Corporation
,
Series
4087
,
Class
SB
,
2
.32
%
(
SOFR30A
+
592
bps
)
,
7/15/42
(e)
(f)
......................................
54
5
Federal
Home
Loan
Mortgage
Corporation
REMICs
..............................
Series
4091
,
Class
SH
,
2
.84
%
(
SOFR30A
+
644
bps
)
,
8/15/42
(e)
(f)
................
32
4
Series
4999
,
Class
QI
,
4
.00
%
,
5/25/50
(f)
..................................
31
6
Series
5067
,
Class
GI
,
4
.00
%
,
12/25/50
(f)
.................................
40
8
Federal
National
Mortgage
Association
.......................................
Series
2012-14
,
Class
SP
,
2
.81
%
(
SOFR30A
+
644
bps
)
,
8/25/41
(e)
(f)
..............
10
1
Series
2018-43
,
Class
SM
,
2
.46
%
(
SOFR30A
+
609
bps
)
,
6/25/48
(e)
(f)
..............
13
1
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Strategic
Income
VCT
Portfolio
3
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
June
30,
2026
See
notes
to
financial
statements.
Security
Description
Principal
Amount
(000)
a
Value
(000)
Series
2019-33
,
Class
S
,
2
.31
%
(
SOFR30A
+
594
bps
)
,
7/25/49
(e)
(f)
...............
$
14
$
1
Series
2019-41
,
Class
PS
,
2
.31
%
(
SOFR30A
+
594
bps
)
,
8/25/49
(e)
(f)
..............
13
2
Series
2019-41
,
Class
SM
,
2
.31
%
(
SOFR30A
+
594
bps
)
,
8/25/49
(e)
(f)
..............
14
1
Government
National
Mortgage
Association
....................................
Series
2019-117
,
Class
SB
,
9/20/49
(d)
(f)
..................................
111
1
Series
2019-128
,
Class
IB
,
3
.50
%
,
10/20/49
(f)
..............................
164
26
Series
2019-128
,
Class
ID
,
3
.50
%
,
10/20/49
(f)
..............................
162
25
Series
2019-159
,
Class
CI
,
3
.50
%
,
12/20/49
(f)
..............................
80
13
Series
2020-9
,
Class
SA
,
1/20/50
(d)
(f)
....................................
90
1
95
Agency
CMO
Other
(0.0%):(g)
Government
National
Mortgage
Association
,
Series
2009-83
,
Class
EB
,
4
.50
%
,
9/20/39
....
8
8
Commercial
MBS
(4.3%):
Alen
Mortgage
Trust
,
Series
2021-ACEN
,
Class
E
,
7
.74
%
(
TSFR1M
+
411
bps
)
,
4/15/34
(a)
(e)
(f)
60
45
BAY
Trust
,
Series
2026-MDWS
,
Class
A
,
5
.24
%
(
TSFR1M
+
164
bps
)
,
6/15/41
(a)
(e)
(f)
.....
120
120
Benchmark
Mortgage
Trust
,
Series
2020-IG3
,
Class
B
,
3
.35
%
,
9/15/48
,
Callable
4/15/30
@
100
(a)
(b)
.........................................................
100
72
CSAIL
Commercial
Mortgage
Trust
,
Series
2015-C1
,
Class
C
,
3
.89
%
,
4/15/50
,
Callable
10/15/27
@
100
(b)
..................................................
100
95
FREMF
Mortgage
Trust
..................................................
Series
2017-KW02
,
Class
B
,
3
.86
%
,
12/25/26
(a)
(b)
..........................
49
48
Series
2017-KW03
,
Class
B
,
4
.22
%
,
7/25/27
(a)
(b)
...........................
50
49
Series
2018-KHG1
,
Class
B
,
4
.03
%
,
12/25/27
(a)
(b)
..........................
75
72
Series
2018-KW07
,
Class
B
,
4
.25
%
,
10/25/31
,
Callable
10/25/28
@
100
(a)
(b)
.......
25
23
Series
2019-KJ24
,
Class
B
,
7
.60
%
,
10/25/27
(a)
(b)
...........................
22
22
FREMF
Trust
,
Series
2018-KW04
,
Class
B
,
4
.07
%
,
9/25/28
(a)
(b)
....................
50
46
GS
Mortgage
Securities
Corp.
Trust
,
Series
2020-DUNE
,
Class
E
,
6
.39
%
(
TSFR1M
+
276
bps
)
,
12/15/36
(a)
(e)
(f)
...................................................
80
76
J.P.
Morgan
Chase
Commercial
Mortgage
Securities
Trust
,
Series
2020-LOOP
,
Class
F
,
3
.99
%
,
12/5/38
(a)
(b)
(f)
....................................................
100
12
Key
Commercial
Mortgage
Securities
Trust
,
Series
2019-S2
,
Class
A3
,
3
.47
%
,
6/15/52
,
Callable
6/15/29
@
100
(a)
............................................
43
41
Morgan
Stanley
Capital
I
Trust
.............................................
Series
2014-150E
,
Class
AS
,
4
.01
%
,
9/9/32
,
Callable
9/9/27
@
100
(a)
(f)
...........
100
91
Series
2016-UBS9
,
Class
D
,
3
.00
%
,
3/15/49
,
Callable
7/15/26
@
100
(a)
...........
15
12
Series
2018-MP
,
Class
A
,
4
.42
%
,
7/11/40
(a)
(b)
(f)
............................
100
94
Ready
Capital
Mortgage
Trust
,
Series
2019-5
,
Class
E
,
5
.17
%
,
2/25/52
,
Callable
8/25/28
@
100
(a)
(b)
.........................................................
100
91
SLG
Office
Trust
.......................................................
Series
2021-OVA
,
Class
E
,
2
.85
%
,
7/15/41
(a)
(f)
.............................
100
86
Series
2021-OVA
,
Class
F
,
2
.85
%
,
7/15/41
(a)
(f)
.............................
100
83
UBS
Commercial
Mortgage
Trust
,
Series
2018-C9
,
Class
XB
,
0
.49
%
,
3/15/51
,
Callable
3/15/28
@
100
(b)
(f)
.......................................................
1,000
6
Velocity
Commercial
Capital
Loan
Trust
,
Series
2025-1
,
Class
A
,
6
.03
%
,
2/25/55
,
Callable
1/25/45
@
100
(a)
(b)
.................................................
75
75
1,259
Private
CMO
Floating
(3.5%):
Connecticut
Avenue
Securities
Trust
.........................................
Series
2020-SBT1
,
Class
1M2
,
7
.39
%
(
SOFR30A
+
376
bps
)
,
2/25/40
,
Callable
2/25/27
@
100
(a)
(e)
.........................................................
20
20
Series
2022-R02
,
Class
2B1
,
8
.13
%
(
SOFR30A
+
450
bps
)
,
1/25/42
,
Callable
1/25/27
@
100
(a)
(e)
.........................................................
70
71
Series
2024-R03
,
Class
2M2
,
5
.58
%
(
SOFR30A
+
195
bps
)
,
3/25/44
,
Callable
3/25/29
@
100
(a)
(e)
.........................................................
50
50
Eagle
Re
Ltd.
,
Series
2023-1
,
Class
M1B
,
7
.58
%
(
SOFR30A
+
395
bps
)
,
9/26/33
,
Callable
9/25/28
@
100
(a)
(e)
.................................................
147
150
Federal
Home
Loan
Mortgage
Corporation
.....................................
Series
2020-HQA3
,
Class
B2
,
13
.74
%
(
SOFR30A
+
1011
bps
)
,
7/25/50
,
Callable
7/25/30
@
100
(a)
(e)
.......................................................
30
39
Series
2021-HQA4
,
Class
B1
,
7
.38
%
(
SOFR30A
+
375
bps
)
,
12/25/41
,
Callable
12/25/26
@
100
(a)
(e)
.......................................................
45
46
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Strategic
Income
VCT
Portfolio
4
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
June
30,
2026
See
notes
to
financial
statements.
Security
Description
Principal
Amount
(000)
a
Value
(000)
Federal
Home
Loan
Mortgage
Corporation
MSCR
Trust
,
Series
2021-MN3
,
Class
M2
,
7
.63
%
(
SOFR30A
+
400
bps
)
,
11/25/51
,
Callable
7/25/36
@
100
(a)
(e)
...................
$
75
$
77
Federal
Home
Loan
Mortgage
Corporation
STACR
REMIC
Trust
....................
Series
2020-DNA6
,
Class
B2
,
9
.28
%
(
SOFR30A
+
565
bps
)
,
12/25/50
,
Callable
12/25/30
@
100
(a)
(e)
.......................................................
50
58
Series
2020-HQA5
,
Class
B2
,
11
.03
%
(
SOFR30A
+
740
bps
)
,
11/25/50
,
Callable
11/25/30
@
100
(a)
(e)
.......................................................
80
97
Series
2026-HQA1
,
Class
A1
,
4
.63
%
(
SOFR30A
+
100
bps
)
,
5/25/46
,
Callable
5/25/31
@
100
(a)
(e)
.........................................................
39
39
Series
2026-HQA1
,
Class
M1
,
4
.88
%
(
SOFR30A
+
125
bps
)
,
5/25/46
,
Callable
5/25/31
@
100
(a)
(e)
.........................................................
55
55
JPMorgan
Chase
Bank
NA
,
Series
2021-CL1
,
Class
M3
,
5
.43
%
(
SOFR30A
+
180
bps
)
,
3/25/51
,
Callable
11/25/36
@
100
(a)
(e)
.........................................
50
50
Multifamily
Connecticut
Avenue
Securities
Trust
,
Series
2019-01
,
Class
M10
,
6
.99
%
(
SOFR30A
+
336
bps
)
,
10/25/49
(a)
(e)
.....................................
70
71
STACR
Trust
,
Series
2018-HRP2
,
Class
B2
,
14
.24
%
(
SOFR30A
+
1061
bps
)
,
2/25/47
,
Callable
11/25/28
@
100
(a)
(e)
................................................
50
59
Towd
Point
Mortgage
Trust
,
Series
2019-HY1
,
Class
B2
,
5
.91
%
(
TSFR1M
+
226
bps
)
,
10/25/48
,
Callable
1/25/29
@
100
(a)
(e)
..........................................
100
103
Triangle
Re
Ltd.
,
Series
2023-1
,
Class
M1A
,
7
.03
%
(
SOFR30A
+
340
bps
)
,
11/25/33
,
Callable
8/25/28
@
100
(a)
(e)
.................................................
22
22
1,007
Private
CMO
Other
(1.8%):
Bayview
MSR
Opportunity
Master
Fund
Trust
,
Series
2021-2
,
Class
A8
,
2
.50
%
,
6/25/51
,
Callable
3/25/46
@
100
(a)
(b)
..........................................
100
69
BINOM
Securitization
Trust
,
Series
2022-RPL1
,
Class
M3
,
3
.00
%
,
2/25/61
,
Callable
7/25/26
@
100
(a)
(b)
.......................................................
100
74
JPMorgan
Mortgage
Trust
.................................................
Series
2021-INV1
,
Class
B3
,
2
.97
%
,
10/25/51
,
Callable
9/25/47
@
100
(a)
(b)
........
87
72
Series
2022-LTV1
,
Class
M1
,
3
.51
%
,
7/25/52
,
Callable
1/25/43
@
100
(a)
(b)
........
100
70
Towd
Point
Mortgage
Trust
................................................
Series
2017-1
,
Class
B3
,
3
.73
%
,
10/25/56
,
Callable
9/25/30
@
100
(a)
(b)
...........
100
85
Series
2021-R1
,
Class
A1
,
2
.92
%
,
11/30/60
(a)
(b)
............................
80
72
Wells
Fargo
Mortgage
Backed
Securities
Trust
,
Series
2020-5
,
Class
B2
,
2
.91
%
,
9/25/50
,
Callable
9/25/42
@
100
(a)
(b)
..........................................
83
73
515
Total
Collateralized
Mortgage
Obligations
(Cost
$3,247)
a
a
a
2,884
Shares
Common
Stocks
(0.1%)
Consumer
Discretionary
(0.0%):(g)
Desarrolladora
Homex
SAB
de
CV
(c)
(h)
......................................
15,463
—
(i)
Industrials
(0.1%):
Grupo
Aeromexico
SAB
de
CV
(h)
...........................................
15,290
27
Materials
(0.0%):
Emerald
Plantation
Holdings
Ltd.
(c)
.........................................
1,032
—
Total
Common
Stocks
(Cost
$19)
a
a
a
27
Preferred
Stocks
(0.6%)
Financials
(0.6%):
Bank
of
America
Corp.
,
Series
LL
,
5
.00
%
(j)
....................................
1,718
34
Capital
One
Financial
Corp.
,
Series
L
,
4
.38
%
(j)
.................................
259
4
JPMorgan
Chase
&
Co.
,
Series
MM
,
4
.20
%
(j)
..................................
2,321
40
KeyCorp
,
Series
G
,
5
.63
%
(j)
...............................................
695
14
Morgan
Stanley
,
Series
O
,
4
.25
%
(j)
..........................................
2,870
49
State
Street
Corp.
,
Series
G
,
5
.35
%
(j)
........................................
444
10
U.S.
Bancorp
,
Series
L
,
3
.75
%
(j)
............................................
423
6
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Strategic
Income
VCT
Portfolio
5
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
June
30,
2026
See
notes
to
financial
statements.
Security
Description
Shares
a
Value
(000)
Wells
Fargo
&
Co.
,
Series
DD
,
4
.25
%
(j)
......................................
1,747
$
29
186
Total
Preferred
Stocks
(Cost
$195)
a
a
a
186
Principal
Amount
(000)
Convertible
Corporate
Bonds
(0.2%)
Communication
Services
(0.2%):
Live
Nation
Entertainment,
Inc.
2
.88
%
,
1/15/30
....................................................
$
5
6
2
.88
%
,
10/15/31
(a)
..................................................
50
55
61
Real
Estate
(0.0%):(g)
Boston
Properties
LP
,
2
.00
%
,
10/1/30
(a)
......................................
10
10
Total
Convertible
Corporate
Bonds
(Cost
$65)
a
a
a
71
Shares
Convertible
Preferred
Stocks
(0.2%)
Information
Technology
(0.2%):
Oracle
Corp.
,
Series
D
,
6
.50
%
,
1/15/29
.......................................
1,000
45
Total
Convertible
Preferred
Stocks
(Cost
$50)
a
a
a
45
Principal
Amount
(000)
Senior
Secured
Loans
(1.2%)
Consumer
Discretionary
(0.3%):
Fitness
International
LLC,
Term
B
Loan
,
8
.14
%
(
SOFR01M
+
450
bps
)
,
2/12/29
(e)
.........
$
5
5
River
Rock
Entertainment
Authority,
Term
Loan
,
12
.62
%
(
SOFR01M
+
900
bps
)
,
11/24/31
(e)
.
65
64
69
Financials
(0.2%):
1261229
BC
Ltd.,
Initial
Term
Loan
,
9
.89
%
(
SOFR01M
+
625
bps
)
,
10/8/30
(e)
............
40
38
LC
Ahab
US
Bidco
LLC,
Initial
Term
Loan
,
6
.14
%
(
SOFR01M
+
250
bps
)
,
4/14/31
(e)
......
20
20
58
Health
Care
(0.0%):(g)
Endo
Finance
Holdings,
Inc.,
Term
B
Loan
,
7
.39
%
(
SOFR01M
+
375
bps
)
,
4/23/31
(e)
.......
10
10
Industrials
(0.6%):
The
Hertz
Corp.,
Initial
Term
B
Loan
,
7
.43
%
(
SOFR03M
+
376
bps
)
,
6/30/28
(e)
...........
202
144
The
Hertz
Corp.,
Initial
Term
C
Loan
,
7
.43
%
(
SOFR03M
+
376
bps
)
,
6/30/28
(e)
...........
40
28
172
Materials
(0.1%):
Worthington
Steel,
Inc.,
Initial
Term
Loan
,
7
.62
%
(
SOFR01M
+
400
bps
)
,
6/1/33
(e)
........
25
25
Total
Senior
Secured
Loans
(Cost
$389)
a
a
a
334
Corporate
Bonds
(25.3%)
Communication
Services
(1.0%):
Meta
Platforms,
Inc.
6
.20
%
,
5/15/46
,
Callable
11/15/45
@
100
..................................
130
130
5
.63
%
,
11/15/55
,
Callable
5/15/55
@
100
..................................
35
32
5
.75
%
,
11/15/65
,
Callable
5/15/65
@
100
..................................
60
54
Space
Exploration
Technologies
Corp.
,
5
.65
%
,
7/15/33
,
Callable
5/15/33
@
100
(a)
........
65
65
Uniti
Group
LP/Uniti
Group
Finance,
Inc./CSL
Capital
LLC
,
8
.63
%
,
6/15/32
,
Callable
6/15/28
@
104.31
(a)
......................................................
10
10
291
Consumer
Discretionary
(2.1%):
Avis
Budget
Car
Rental
LLC/Avis
Budget
Finance,
Inc.
8
.00
%
,
2/15/31
,
Callable
11/15/26
@
104
(a)
................................
15
15
8
.38
%
,
6/15/32
,
Callable
6/15/28
@
104.19
(a)
..............................
5
5
Champions
Financing,
Inc.
,
8
.75
%
,
2/15/29
,
Callable
8/1/26
@
104.38
(a)
...............
68
66
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Strategic
Income
VCT
Portfolio
6
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
June
30,
2026
See
notes
to
financial
statements.
Security
Description
Principal
Amount
(000)
a
Value
(000)
Expedia
Group,
Inc.
,
5
.50
%
,
4/15/36
,
Callable
1/15/36
@
100
.......................
$
90
$
89
Ford
Motor
Co.
4
.35
%
,
12/8/26
,
Callable
9/8/26
@
100
...................................
135
135
6
.10
%
,
8/19/32
,
Callable
5/19/32
@
100
..................................
40
41
Mobility
Global,
Inc.
,
5
.45
%
,
6/15/31
,
Callable
5/15/31
@
100
(a)
....................
15
15
Petco
Health
&
Wellness
Co.,
Inc.
,
8
.25
%
,
2/1/31
,
Callable
2/1/28
@
104.13
(a)
..........
5
5
Resorts
World
Las
Vegas
LLC/RWLV
Capital,
Inc.
,
4
.63
%
,
4/16/29
,
Callable
1/16/29
@
100
(a)
200
181
The
Michaels
Cos.,
Inc.
,
8
.50
%
,
3/15/33
,
Callable
3/15/29
@
104.25
(a)
................
70
69
Whirlpool
Corp.
,
7
.50
%
,
7/1/31
,
Callable
7/1/28
@
103.75
(a)
.......................
5
5
626
Consumer
Staples
(0.3%):
Albertsons
Cos.,
Inc./Safeway,
Inc./New
Albertsons
LP/Albertsons
LLC
5
.50
%
,
3/31/31
,
Callable
11/15/27
@
102.75
(a)
.............................
25
24
5
.75
%
,
3/31/34
,
Callable
11/15/28
@
102.88
(a)
.............................
60
57
Fiesta
Purchaser,
Inc.
,
9
.63
%
,
9/15/32
,
Callable
9/15/27
@
104.81
(a)
..................
11
11
92
Energy
(2.6%):
Archrock
Services
LP/Archrock
Partners
Finance
Corp.
,
6
.00
%
,
2/1/34
,
Callable
2/1/29
@
103
(a)
...........................................................
10
10
Columbia
Pipelines
Holding
Co.
LLC
5
.10
%
,
10/1/31
,
Callable
8/1/31
@
100
(a)
.................................
40
40
5
.00
%
,
11/17/32
,
Callable
9/17/32
@
100
(a)
................................
45
44
Energy
Transfer
LP
5
.35
%
,
1/15/36
,
Callable
10/15/35
@
100
.................................
30
30
6
.50
%
(
H15T5Y
+
268
bps
)
,
2/15/56
,
Callable
11/15/30
@
100
(e)
.................
79
80
Harvest
Midstream
I
LP
,
6
.75
%
,
5/15/34
,
Callable
5/15/29
@
103.38
(a)
................
15
15
Hess
Midstream
Operations
LP
,
5
.88
%
,
3/1/28
,
Callable
7/12/26
@
102.94
(a)
............
15
15
Hilcorp
Energy
I
LP/Hilcorp
Finance
Co.
6
.88
%
,
5/15/34
,
Callable
5/15/29
@
103.44
(a)
..............................
75
73
7
.25
%
,
2/15/35
,
Callable
2/15/30
@
103.63
(a)
..............................
222
219
Kodiak
Gas
Services
LLC
,
5
.88
%
,
4/1/31
,
Callable
4/1/28
@
102.94
(a)
................
10
10
Kraken
Oil
&
Gas
Partners
LLC
7
.63
%
,
8/15/29
,
Callable
8/15/26
@
103.81
(a)
..............................
10
10
7
.13
%
,
5/15/31
,
Callable
5/15/28
@
103.56
(a)
..............................
30
29
NGPL
PipeCo
LLC
,
5
.60
%
,
8/15/36
,
Callable
2/15/36
@
100
(a)
.....................
25
25
Venture
Global
Calcasieu
Pass
LLC
,
6
.00
%
,
5/1/36
,
Callable
11/1/35
@
100
(a)
...........
30
30
Venture
Global
Plaquemines
LNG
LLC
6
.13
%
,
12/15/30
,
Callable
9/15/30
@
100
(a)
...............................
30
31
6
.50
%
,
1/15/34
,
Callable
7/15/33
@
100
(a)
................................
45
47
Wildfire
Intermediate
Holdings
LLC
,
7
.50
%
,
10/15/29
,
Callable
10/15/26
@
103.75
(a)
.....
46
47
755
Financials
(8.8%):
Ally
Financial,
Inc.
6
.18
%
(
SOFR
+
229
bps
)
,
7/26/35
,
Callable
7/26/34
@
100
(e)
....................
75
76
6
.65
%
(
H15T5Y
+
245
bps
)
,
1/17/40
,
Callable
10/19/34
@
100
(e)
.................
50
50
Ameriprise
Financial,
Inc.
,
4
.80
%
,
6/15/31
,
Callable
5/15/31
@
100
...................
10
10
Capital
One
Financial
Corp.
2
.36
%
(
SOFR
+
134
bps
)
,
7/29/32
,
Callable
7/29/31
@
100
(e)
....................
60
52
6
.18
%
(
SOFR
+
204
bps
)
,
1/30/36
,
Callable
1/30/35
@
100
(e)
....................
20
21
Citigroup,
Inc.
6
.75
%
(
H15T5Y
+
257
bps
)
,
Callable
2/15/30
@
100
(e)
(j)
.......................
76
77
6
.95
%
(
H15T5Y
+
273
bps
)
,
Callable
2/15/30
@
100
(e)
(j)
.......................
81
83
Citizens
Financial
Group,
Inc.
,
5
.30
%
(
H15T5Y
+
145
bps
)
,
1/29/36
,
Callable
1/29/31
@
100
(e)
5
5
CNO
Financial
Group,
Inc.
,
6
.45
%
,
6/15/34
,
Callable
3/15/34
@
100
..................
105
109
Farmers
Exchange
Capital
III
,
5
.45
%
(
TSFR3M
+
372
bps
)
,
10/15/54
,
Callable
10/15/34
@
100
(a)
(e)
.........................................................
100
93
Farmers
Insurance
Exchange
4
.75
%
(
US0003M
+
323
bps
)
,
11/1/57
,
Callable
11/1/37
@
100
(a)
(e)
...............
120
102
7
.00
%
(
H15T10Y
+
386
bps
)
,
10/15/64
,
Callable
7/15/54
@
100
(a)
(e)
..............
60
60
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Strategic
Income
VCT
Portfolio
7
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
June
30,
2026
See
notes
to
financial
statements.
Security
Description
Principal
Amount
(000)
a
Value
(000)
Ford
Motor
Credit
Co.
LLC
5
.88
%
,
11/7/29
,
Callable
10/7/29
@
100
..................................
$
200
$
202
6
.13
%
,
3/8/34
,
Callable
12/8/33
@
100
...................................
205
206
6
.50
%
,
2/7/35
,
Callable
11/7/34
@
100
...................................
200
205
Freedom
Mortgage
Holdings
LLC
9
.13
%
,
5/15/31
,
Callable
5/15/27
@
104.56
(a)
..............................
45
47
8
.38
%
,
4/1/32
,
Callable
4/1/28
@
104.19
(a)
................................
5
5
FS
KKR
Capital
Corp.
,
7
.50
%
,
8/1/31
,
Callable
5/1/31
@
100
.......................
40
40
HUT
8
DC
LLC
,
6
.19
%
,
11/15/42
,
Callable
5/15/42
@
100
(a)
.......................
30
30
Jane
Street
Group/JSG
Finance,
Inc.
,
6
.75
%
,
5/1/33
,
Callable
5/1/28
@
103.38
(a)
.........
15
15
JPMorgan
Chase
&
Co.
,
5
.19
%
(
SOFR
+
130
bps
)
,
2/5/37
,
Callable
2/5/36
@
100
(e)
........
75
74
Liberty
Mutual
Group,
Inc.
,
5
.50
%
,
6/15/52
,
Callable
12/15/51
@
100
(a)
...............
85
80
Lincoln
Financial
Global
Funding
,
4
.20
%
,
1/12/29
(a)
.............................
20
20
Lincoln
National
Corp.
5
.35
%
,
11/15/35
,
Callable
8/15/35
@
100
..................................
15
15
6
.80
%
(
H15T5Y
+
240
bps
)
,
7/15/56
,
Callable
4/15/36
@
100
(e)
..................
30
30
Massachusetts
Mutual
Life
Insurance
Co.
,
5
.95
%
,
6/1/56
,
Callable
12/1/55
@
100
(a)
......
70
69
MetLife,
Inc.
,
5
.85
%
(
H15T5Y
+
182
bps
)
,
3/15/56
,
Callable
3/15/36
@
100
(e)
............
35
35
Morgan
Stanley
5
.95
%
(
H15T5Y
+
243
bps
)
,
1/19/38
,
Callable
1/19/33
@
100
(e)
..................
20
21
5
.94
%
(
H15T5Y
+
180
bps
)
,
2/7/39
,
Callable
2/7/34
@
100
(e)
....................
75
77
Northern
Trust
Corp.
,
5
.12
%
(
H15T5Y
+
105
bps
)
,
11/19/40
,
Callable
11/19/35
@
100
(e)
....
25
24
Old
National
Bancorp
,
5
.77
%
(
TSFR3M
+
220
bps
)
,
2/15/36
,
Callable
2/15/31
@
100
(e)
.....
10
10
OneMain
Finance
Corp.
6
.13
%
,
5/15/30
,
Callable
11/15/29
@
100
..................................
5
5
4
.00
%
,
9/15/30
,
Callable
8/1/26
@
102
...................................
130
120
PennyMac
Financial
Services,
Inc.
,
6
.75
%
,
2/15/34
,
Callable
8/15/28
@
103.38
(a)
........
27
26
Pinnacle
Financial
Partners,
Inc.
,
5
.60
%
(
SOFR
+
170
bps
)
,
5/19/32
,
Callable
5/19/31
@
100
(e)
20
20
Provident
Funding
Associates
LP/PFG
Finance
Corp.
,
9
.75
%
,
9/15/29
,
Callable
9/15/26
@
104.88
(a)
.........................................................
71
74
Prudential
Financial,
Inc.
,
6
.25
%
(
H15T5Y
+
178
bps
)
,
6/15/56
,
Callable
3/15/36
@
100
(e)
...
25
25
Rocket
Cos.,
Inc.
6
.13
%
,
8/1/31
,
Callable
8/1/28
@
103.06
(a)
................................
10
10
6
.50
%
,
6/15/34
,
Callable
6/15/29
@
103.25
(a)
..............................
10
10
Santander
Holdings
USA,
Inc.
,
5
.04
%
(
SOFR
+
110
bps
)
,
6/5/30
,
Callable
6/5/29
@
100
(e)
...
50
50
Starwood
Property
Trust,
Inc.
5
.25
%
,
10/15/28
,
Callable
7/15/28
@
100
(a)
...............................
30
30
5
.88
%
,
8/15/29
,
Callable
5/15/29
@
100
(a)
................................
10
10
5
.75
%
,
1/15/31
,
Callable
7/15/30
@
100
(a)
................................
45
45
6
.13
%
,
6/1/31
,
Callable
12/1/30
@
100
(a)
.................................
20
20
Synchrony
Financial
,
7
.25
%
(
H15T5Y
+
308
bps
)
,
Callable
8/15/31
@
100
(e)
(j)
...........
70
70
The
Goldman
Sachs
Group,
Inc.
,
4
.97
%
(
SOFR
+
103
bps
)
,
6/3/32
,
Callable
6/3/31
@
100
(e)
..
45
45
The
PNC
Financial
Services
Group,
Inc.
,
5
.42
%
(
H15T5Y
+
117
bps
)
,
1/25/41
,
Callable
1/25/36
@
100
(e)
.........................................................
20
20
UWM
Holdings
LLC
,
6
.25
%
,
3/15/31
,
Callable
3/15/28
@
103.13
(a)
..................
25
22
Velocity
Vehicle
Group
LLC
,
8
.00
%
,
6/1/29
,
Callable
8/1/26
@
104
(a)
.................
31
31
WS
Escrow
LLC
,
7
.75
%
,
6/1/33
,
Callable
6/1/29
@
103.88
(a)
.......................
10
10
2,586
Health
Care
(0.8%):
Baxter
International,
Inc.
,
4
.90
%
,
12/15/30
,
Callable
11/15/30
@
100
..................
10
10
DENTSPLY
SIRONA,
Inc.
,
8
.37
%
(
H15T5Y
+
438
bps
)
,
9/12/55
,
Callable
6/12/30
@
100
(e)
..
92
92
Encompass
Health
Corp.
,
5
.88
%
,
6/1/34
,
Callable
6/1/29
@
102.94
(a)
.................
20
20
Highmark,
Inc.
,
5
.75
%
,
5/15/36
,
Callable
2/15/36
@
100
(a)
.........................
25
25
Meridian
Arc
Holdco
LLC
,
6
.25
%
,
4/30/31
,
Callable
4/30/28
@
103.13
(a)
..............
20
20
Tricida,
Inc.
5/15/27
(c)
(k)
......................................................
75
—
5/15/27
(c)
(d)
......................................................
75
—
U.S.
Acute
Care
Solutions
LLC
,
9
.75
%
,
5/15/29
,
Callable
8/1/26
@
104.88
(a)
...........
55
52
219
Industrials
(1.5%):
AECOM
,
6
.00
%
,
8/1/33
,
Callable
8/1/28
@
103
(a)
...............................
90
90
Alaska
Airlines,
Inc.
,
6
.50
%
,
6/1/31
,
Callable
12/1/30
@
100
(a)
......................
50
50
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Strategic
Income
VCT
Portfolio
8
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
June
30,
2026
See
notes
to
financial
statements.
Security
Description
Principal
Amount
(000)
a
Value
(000)
American
Airlines
Pass
Through
Trust
,
3
.95
%
,
7/11/30
............................
$
10
$
10
Core
&
Main
LP
,
6
.00
%
,
7/1/34
,
Callable
7/1/29
@
103
(a)
.........................
15
15
EquipmentShare.com,
Inc.
,
7
.13
%
,
7/1/34
,
Callable
7/1/29
@
103.56
(a)
................
45
44
Herc
Holdings,
Inc.
5
.75
%
,
3/15/31
,
Callable
3/15/28
@
102.88
(a)
..............................
10
10
7
.25
%
,
6/15/33
,
Callable
6/15/28
@
103.63
(a)
..............................
20
21
6
.00
%
,
3/15/34
,
Callable
3/15/29
@
103
(a)
................................
10
10
Honeywell
Aerospace,
Inc.
4
.60
%
,
3/16/33
,
Callable
1/16/33
@
100
(a)
................................
20
20
4
.95
%
,
3/16/36
,
Callable
12/16/35
@
100
(a)
...............................
40
39
JetBlue
Pass
Through
Trust
,
4
.00
%
,
11/15/32
...................................
13
13
Qxo
Building
Products,
Inc.
6
.50
%
,
7/15/31
,
Callable
7/15/28
@
103.25
(a)
..............................
5
5
6
.88
%
,
7/15/34
,
Callable
7/15/29
@
103.44
(a)
..............................
10
10
The
ADT
Security
Corp.
,
5
.88
%
,
10/15/33
,
Callable
10/15/32
@
100
(a)
................
60
59
United
Airlines
Holdings,
Inc.
,
5
.38
%
,
3/1/31
,
Callable
9/1/30
@
100
..................
20
20
Verisk
Analytics,
Inc.
,
4
.45
%
,
3/15/31
,
Callable
2/15/31
@
100
......................
9
9
425
Information
Technology
(2.2%):
Core
Scientific
Finance
I
LLC
,
7
.75
%
,
5/15/31
,
Callable
5/15/28
@
103.88
(a)
...........
30
30
CoreWeave,
Inc.
,
9
.00
%
,
2/1/31
,
Callable
2/1/28
@
104.5
(a)
........................
110
109
Foundry
JV
Holdco
LLC
,
5
.90
%
,
1/25/30
,
Callable
12/25/29
@
100
(a)
................
200
206
Intel
Corp.
,
5
.30
%
,
5/15/36
,
Callable
2/15/36
@
100
..............................
25
25
Oracle
Corp.
5
.95
%
,
9/26/55
,
Callable
3/26/55
@
100
..................................
58
49
6
.70
%
,
2/4/56
,
Callable
8/4/55
@
100
....................................
140
132
6
.85
%
,
2/4/66
,
Callable
8/4/65
@
100
....................................
35
33
Qnity
Electronics,
Inc.
5
.75
%
,
8/15/32
,
Callable
8/15/28
@
102.88
(a)
..............................
25
25
6
.25
%
,
8/15/33
,
Callable
8/15/28
@
103.13
(a)
..............................
25
26
635
Materials
(1.8%):
ARC
Falcon
I,
Inc./Arclin
USA
LLC/New
Arclin
US
Holding
Corp.
,
9
.75
%
,
3/1/33
,
Callable
3/1/29
@
104.88
(a)
.................................................
100
96
Celanese
US
Holdings
LLC
,
7
.70
%
,
11/15/33
,
Callable
8/15/33
@
100
.................
29
31
Cleveland
Cliffs,
Inc.
7
.00
%
,
3/15/32
,
Callable
3/15/27
@
103.5
(a)
...............................
30
30
7
.38
%
,
5/1/33
,
Callable
5/1/28
@
103.69
(a)
................................
85
85
7
.63
%
,
1/15/34
,
Callable
1/15/29
@
103.81
(a)
..............................
10
10
Commercial
Metals
Co.
,
6
.00
%
,
12/15/35
,
Callable
12/15/30
@
103
(a)
................
40
40
Hybar
LLC
,
7
.38
%
,
7/1/34
,
Callable
7/1/29
@
103.69
(a)
...........................
5
5
Novelis
Corp.
,
6
.38
%
,
8/15/33
,
Callable
8/15/28
@
103.19
(a)
.......................
60
60
Southern
Copper
Corp.
,
5
.35
%
,
6/24/36
,
Callable
3/24/36
@
100
.....................
170
169
526
Real
Estate
(0.4%):
Beacon
Point
DC
LLC
,
6
.13
%
,
11/30/42
,
Callable
5/30/42
@
100
(a)
..................
50
50
CBRE
Services,
Inc.
,
4
.90
%
,
1/15/33
,
Callable
11/15/32
@
100
......................
15
15
Highwoods
Realty
LP
3
.05
%
,
2/15/30
,
Callable
11/15/29
@
100
..................................
6
6
2
.60
%
,
2/1/31
,
Callable
11/1/30
@
100
...................................
6
5
5
.35
%
,
1/15/33
,
Callable
11/15/32
@
100
..................................
10
10
Kennedy-Wilson,
Inc.
7
.00
%
,
6/1/31
,
Callable
6/1/28
@
103.5
(a)
.................................
20
21
7
.25
%
,
6/1/33
,
Callable
6/1/29
@
103.63
(a)
................................
20
20
127
Utilities
(3.8%):
Alta
Wind
Holdings
LLC
,
7
.00
%
,
6/30/35
(a)
...................................
35
34
American
Electric
Power
Co.,
Inc.
5
.80
%
(
H15T5Y
+
213
bps
)
,
3/15/56
,
Callable
12/15/30
@
100
(e)
.................
283
281
6
.05
%
(
H15T5Y
+
194
bps
)
,
3/15/56
,
Callable
12/15/35
@
100
(e)
.................
50
50
Basin
Electric
Power
Cooperative
,
5
.85
%
,
10/15/55
,
Callable
4/15/55
@
100
............
18
18
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Strategic
Income
VCT
Portfolio
9
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
June
30,
2026
See
notes
to
financial
statements.
Security
Description
Principal
Amount
(000)
a
Value
(000)
Consolidated
Edison
Co.
of
New
York,
Inc.
,
5
.88
%
,
6/15/56
,
Callable
12/15/55
@
100
.....
$
50
$
50
Dominion
Energy,
Inc.
,
6
.25
%
(
H15T5Y
+
170
bps
)
,
12/15/56
,
Callable
9/16/36
@
100
(e)
....
30
30
Duke
Energy
Carolinas
LLC
,
5
.15
%
,
6/15/36
,
Callable
3/15/36
@
100
.................
30
30
Essential
Utilities,
Inc.
,
5
.13
%
,
3/15/36
,
Callable
12/15/35
@
100
....................
20
20
Eversource
Energy
6
.10
%
(
H15T5Y
+
252
bps
)
,
8/15/56
,
Callable
5/15/31
@
100
(e)
..................
20
20
6
.35
%
(
H15T5Y
+
233
bps
)
,
8/15/56
,
Callable
5/15/36
@
100
(e)
..................
10
10
Long
Ridge
Energy
LLC
,
8
.75
%
,
2/15/32
,
Callable
2/15/28
@
104.38
(a)
...............
55
58
NextEra
Energy
Capital
Holdings,
Inc.
6
.20
%
(
H15T5Y
+
177
bps
)
,
10/1/56
,
Callable
7/4/36
@
100
(e)
...................
30
30
6
.63
%
(
H15T5Y
+
169
bps
)
,
10/1/66
,
Callable
7/4/46
@
100
(e)
...................
30
30
NRG
Energy,
Inc.
,
6
.13
%
,
5/15/36
,
Callable
5/15/31
@
103.06
(a)
....................
55
55
Public
Service
Enterprise
Group,
Inc.
,
4
.80
%
,
6/15/31
,
Callable
5/15/31
@
100
...........
25
25
San
Diego
Gas
&
Electric
Co.
,
5
.20
%
,
3/15/36
,
Callable
12/15/35
@
100
...............
15
15
Sempra
6
.55
%
(
H15T5Y
+
214
bps
)
,
4/1/55
,
Callable
1/1/35
@
100
(e)
....................
100
101
6
.37
%
(
H15T5Y
+
263
bps
)
,
4/1/56
,
Callable
1/1/31
@
100
(e)
....................
20
20
Southern
California
Edison
Co.
,
4
.95
%
,
9/15/31
,
Callable
8/15/31
@
100
...............
25
25
Southern
Power
Co.
,
4
.80
%
,
6/15/31
,
Callable
4/15/31
@
100
.......................
30
30
Spire,
Inc.
6
.25
%
(
H15T5Y
+
256
bps
)
,
6/1/56
,
Callable
3/1/31
@
100
(e)
....................
27
27
6
.45
%
(
H15T5Y
+
233
bps
)
,
6/1/56
,
Callable
3/1/36
@
100
(e)
....................
15
15
Talen
Energy
Supply
LLC
6
.25
%
,
2/1/34
,
Callable
10/15/28
@
103.13
(a)
..............................
40
40
6
.50
%
,
2/1/36
,
Callable
10/15/30
@
103.25
(a)
..............................
40
40
Vistra
Operations
Co.
LLC
4
.60
%
,
10/15/30
,
Callable
9/15/30
@
100
(a)
...............................
30
29
4
.70
%
,
1/31/31
,
Callable
12/31/30
@
100
(a)
...............................
10
10
5
.35
%
,
1/31/36
,
Callable
10/31/35
@
100
(a)
...............................
15
15
WEC
Energy
Group,
Inc.
,
5
.63
%
(
H15T5Y
+
191
bps
)
,
5/15/56
,
Callable
2/15/31
@
100
(e)
...
10
10
1,118
Total
Corporate
Bonds
(Cost
$7,428)
a
a
a
7,400
Yankee
Dollars
(18.8%)
Energy
(1.5%):
Enbridge,
Inc.
7
.20
%
(
H15T5Y
+
297
bps
)
,
6/27/54
,
Callable
3/27/34
@
100
(e)
..................
50
53
7
.38
%
(
H15T5Y
+
312
bps
)
,
3/15/55
,
Callable
12/15/29
@
100
(e)
.................
50
53
8
.50
%
(
H15T5Y
+
443
bps
)
,
1/15/84
,
Callable
10/15/33
@
100
(e)
.................
58
66
Energean
Israel
Finance
Ltd.
,
5
.88
%
,
3/30/31
,
Callable
9/30/30
@
100
(a)
...............
72
69
South
Bow
Canadian
Infrastructure
Holdings
Ltd.
7
.50
%
(
H15T5Y
+
367
bps
)
,
3/1/55
,
Callable
12/1/34
@
100
(e)
...................
35
38
7
.63
%
(
H15T5Y
+
395
bps
)
,
3/1/55
,
Callable
12/1/29
@
100
(e)
...................
88
92
TransCanada
PipeLines
Ltd.
,
6
.37
%
(
H15T5Y
+
212
bps
)
,
10/17/56
,
Callable
7/17/36
@
100
(e)
10
10
Vista
Energy
Argentina
SAU
,
7
.88
%
,
4/8/38
,
Callable
4/8/31
@
103.94
(a)
..............
20
21
YPF
SA
,
6
.95
%
,
7/21/27
(a)
................................................
45
45
447
Financials
(8.7%):
ABRA
Global
Finance
,
14
.00
%
,
10/22/29
,
Callable
10/22/26
@
106.5
(a)
(l)
.............
55
54
African
Development
Bank
,
5
.88
%
(
H15T5Y
+
165
bps
)
,
Callable
5/7/35
@
100
(e)
(j)
.......
200
197
Allianz
SE
,
6
.55
%
(
H15T5Y
+
232
bps
)
,
Callable
10/30/33
@
100
(a)
(e)
(j)
...............
200
203
Avolon
Holdings
Funding
Ltd.
,
4
.70
%
,
1/30/31
,
Callable
12/30/30
@
100
(a)
............
40
39
Banco
Santander
SA
,
3
.23
%
(
H15T1Y
+
160
bps
)
,
11/22/32
,
Callable
8/22/31
@
100
(e)
.....
200
181
BNP
Paribas
SA
,
7
.45
%
(
H15T5Y
+
313
bps
)
,
Callable
6/27/35
@
100
(a)
(e)
(j)
............
200
206
Cidron
Aida
Finco
SARL
,
7
.00
%
,
10/27/31
,
Callable
10/27/27
@
103.5
(a)
..............
100
111
European
Bank
for
Reconstruction
&
Development
6
.25
%
,
4/11/28
,
MTN
................................................
4,700
49
2/2/32
,
MTN
(d)
....................................................
1,675
168
7/11/36
,
Callable
7/11/26
@
12.12
(d)
.....................................
8,250
12
Global
Aircraft
Leasing
Co.
Ltd.
,
8
.75
%
,
9/1/27
,
Callable
8/1/26
@
104.38
(a)
............
150
152
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Strategic
Income
VCT
Portfolio
10
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
June
30,
2026
See
notes
to
financial
statements.
Security
Description
Principal
Amount
(000)
a
Value
(000)
International
Bank
for
Reconstruction
&
Development
10
.00
%
,
9/16/26
....................................................
$
11,000
$
23
6
.85
%
,
4/24/28
....................................................
5,500
57
6
.50
%
,
4/17/30
,
MTN
................................................
4,000
41
Macquarie
Bank
Ltd.
,
5
.82
%
(
H15T1Y
+
135
bps
)
,
6/10/37
,
Callable
6/10/36
@
100
(a)
(e)
....
200
200
Manulife
Financial
Corp.
,
4
.99
%
,
12/11/35
,
Callable
9/11/35
@
100
..................
40
39
Meiji
Yasuda
Life
Insurance
Co.
,
6
.10
%
(
H15T5Y
+
291
bps
)
,
6/11/55
,
Callable
6/11/35
@
100
(a)
(e)
.........................................................
200
202
Mizuho
Financial
Group,
Inc.
,
4
.97
%
(
H15T1Y
+
83
bps
)
,
7/13/32
,
Callable
7/13/31
@
100
(e)
.
200
199
UniCredit
SpA
7
.30
%
(
USISOA05
+
491
bps
)
,
4/2/34
,
Callable
4/2/29
@
100
(a)
(e)
................
200
211
5
.46
%
(
H15T5Y
+
475
bps
)
,
6/30/35
,
Callable
6/30/30
@
100
(a)
(e)
................
200
201
2,545
Health
Care
(0.8%):
Teva
Pharmaceutical
Finance
Netherlands
II
BV
,
4
.38
%
,
5/9/30
,
Callable
2/9/30
@
100
.....
200
233
Industrials
(2.0%):
Czechoslovak
Group
AS
,
6
.50
%
,
1/10/31
,
Callable
7/10/27
@
103.25
(a)
...............
245
249
Danaos
Corp.
,
6
.88
%
,
10/15/32
,
Callable
10/15/28
@
103.44
(a)
......................
100
103
Element
Fleet
Management
Corp.
5
.64
%
,
3/13/27
,
Callable
2/13/27
@
100
(a)
................................
60
60
4
.80
%
,
5/29/29
,
Callable
4/29/29
@
100
(a)
................................
20
20
4
.64
%
,
11/24/30
,
Callable
10/24/30
@
100
(a)
...............................
30
30
Transportes
Aereos
Portugueses
SA
,
5
.13
%
,
11/15/29
,
Callable
5/15/29
@
100
(a)
.........
100
116
578
Information
Technology
(0.1%):
Flex
Ltd.
,
5
.38
%
,
11/13/35
,
Callable
8/13/35
@
100
..............................
30
30
Sovereign
Bond
(5.7%):
Argentine
Republic
Government
International
Bond
1
.00
%
,
7/9/29
,
Callable
8/1/26
@
100
....................................
5
4
4
.13
%
,
7/9/35
,
Callable
8/1/26
@
100
(m)
..................................
146
116
Brazilian
Government
International
Bond
,
6
.25
%
,
5/22/36
..........................
200
198
Dominican
Republic
International
Bond
,
5
.88
%
,
10/28/35
,
Callable
7/28/35
@
100
(a)
......
150
148
Egypt
Treasury
Bills
,
12/22/26
(d)
...........................................
3,400
62
Indonesia
Government
International
Bond
,
4
.10
%
,
3/4/34
,
Callable
12/4/33
@
100
........
145
163
Ivory
Coast
Government
International
Bond
,
5
.88
%
,
10/17/31
(a)
.....................
100
118
Kuwait
International
Government
Bond
,
4
.65
%
,
10/9/35
(a)
.........................
200
195
Mexico
Government
International
Bond
,
4
.50
%
,
3/19/34
,
Callable
12/19/33
@
100
........
126
144
Morocco
Government
International
Bond
,
4
.75
%
,
5/26/34
(a)
........................
100
117
Provincia
del
Chubut
Argentina
,
9
.45
%
,
4/29/36
,
Callable
2/29/36
@
100
(a)
.............
15
16
Romanian
Government
International
Bond
5
.25
%
,
5/30/32
(a)
..................................................
60
70
5
.63
%
,
5/30/37
(a)
..................................................
40
45
Serbia
International
Bond
,
2
.05
%
,
9/23/36
(a)
...................................
100
90
Turkiye
Government
Bond
,
30
.00
%
,
9/12/29
...................................
6,776
131
Uruguay
Government
International
Bond
,
9
.75
%
,
7/20/33
,
Callable
4/20/33
@
100
........
1,790
49
1,666
Total
Yankee
Dollars
(Cost
$5,521)
a
a
a
5,499
U.S.
Government
Agency
Mortgages
(16.4%)
Federal
Home
Loan
Mortgage
Corporation
3
.00
%
,
10/1/29
-
11/1/47
..............................................
4
4
5
.00
%
,
11/1/39
-
3/1/44
..............................................
7
6
5
.50
%
,
6/1/41
-
7/1/49
...............................................
66
67
1
.50
%
,
3/1/42
.....................................................
145
121
3
.50
%
,
7/1/46
.....................................................
18
17
4
.00
%
,
4/1/47
.....................................................
3
3
2
.50
%
,
5/1/51
.....................................................
211
179
6
.00
%
,
8/1/54
.....................................................
70
72
6
.50
%
,
7/1/55
.....................................................
80
83
552
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Strategic
Income
VCT
Portfolio
11
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
June
30,
2026
See
notes
to
financial
statements.
Security
Description
Principal
Amount
(000)
a
Value
(000)
Federal
National
Mortgage
Association
5
.00
%
,
4/1/30
-
12/1/44
..............................................
$
12
$
13
3
.00
%
,
10/1/30
-
3/1/52
..............................................
139
126
6
.00
%
,
3/1/32
-
3/1/54
...............................................
237
245
4
.00
%
,
10/1/40
-
9/1/51
..............................................
71
67
2
.00
%
,
12/1/41
-
11/1/51
..............................................
140
119
4
.50
%
,
9/1/43
-
1/1/44
...............................................
45
45
5
.50
%
,
4/1/50
-
10/1/55
..............................................
352
356
2
.50
%
,
5/1/51
-
2/1/52
...............................................
580
496
3
.50
%
,
3/1/52
-
4/1/52
...............................................
130
120
6
.50
%
,
8/1/53
-
9/1/54
...............................................
102
107
1,694
Federal
National
Mortgage
Association,
TBA
5
.00
%
,
7/25/41
-
8/25/56
.............................................
500
493
5
.50
%
,
7/25/41
-
8/25/56
.............................................
500
504
3
.00
%
,
8/25/56
....................................................
300
261
3
.50
%
,
8/25/56
....................................................
400
363
4
.50
%
,
8/25/56
....................................................
200
191
1,812
Government
National
Mortgage
Association
6
.50
%
,
1/15/30
-
11/15/32
.............................................
1
–
(i)
6
.00
%
,
2/15/33
-
4/20/55
.............................................
65
65
4
.50
%
,
9/15/33
-
11/20/44
.............................................
69
68
5
.50
%
,
1/15/34
-
6/15/35
.............................................
7
7
5
.00
%
,
4/15/35
....................................................
1
1
4
.00
%
,
4/15/42
-
4/20/48
.............................................
136
129
3
.50
%
,
10/15/42
-
3/20/46
.............................................
16
15
285
Government
National
Mortgage
Association,
TBA
2
.00
%
,
7/20/56
....................................................
100
82
2
.50
%
,
7/20/56
....................................................
100
85
3
.00
%
,
7/20/56
....................................................
100
89
3
.50
%
,
7/20/56
....................................................
100
90
6
.50
%
,
7/20/56
....................................................
100
104
450
Total
U.S.
Government
Agency
Mortgages
(Cost
$4,875)
a
a
a
4,793
U.S.
Treasury
Obligations
(17.8%)
U.S.
Treasury
Bonds
4
.38
%
,
8/15/43
(n)
..................................................
216
203
2
.25
%
,
2/15/52
(n)
..................................................
324
195
4
.63
%
,
11/15/55
(n)
..................................................
1,717
1,634
U.S.
Treasury
Inflation
Indexed
Bonds
,
1
.88
%
,
7/15/35
(n)
..........................
287
291
U.S.
Treasury
Notes
4
.25
%
,
1/31/30
(n)
..................................................
1,000
1,002
3
.50
%
,
2/28/31
(n)
..................................................
680
660
4
.13
%
,
2/15/36
(n)
..................................................
1,247
1,216
Total
U.S.
Treasury
Obligations
(Cost
$5,342)
a
a
a
5,201
Shares
Affiliated
Mutual
Funds
(5.2%)
Victory
Pioneer
ILS
Interval
Fund
...........................................
143,074
1,505
Total
Affiliated
Mutual
Funds
(Cost
$1,401)
a
a
a
1,505
Principal
Amount
(000)
Short-Term
Investments
(4.4%)
U.S.
Treasury
Obligations
(4.4%):
U.S.
Treasury
Bills
3
.38
%
,
7/16/26
(n)
..................................................
150
150
3
.44
%
,
7/21/26
(n)
..................................................
450
449
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Strategic
Income
VCT
Portfolio
12
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
June
30,
2026
See
notes
to
financial
statements.
Security
Description
Principal
Amount
(000)
a
Value
(000)
3
.49
%
,
7/28/26
(n)
..................................................
$
700
$
698
1,297
Total
Short-Term
Investments
(Cost
$1,297)
a
a
a
1,297
Total
Investments
(Cost
$31,306)
—
105.1%
30,711
Liabilities
in
excess
of
other
assets
—  (5.1)%
(1,486)
NET
ASSETS
-
100.00%
$
29,225
At
June
30,
2026,
the
Fund's
investments
in
foreign
securities
were
20.1%
of
net
assets.
(a)
Rule
144A
security
or
other
security
that
is
restricted
as
to
resale
to
institutional
investors.
As
of
June
30,
2026,
the
fair
value
of
these
securities
was
$10,809
(thousands)
and
amounted
to
37.0%
of
net
assets.
(b)
The
rate
for
certain
asset-backed
and
mortgage-backed
securities
may
vary
based
on
factors
relating
to
the
pool
of
assets
underlying
the
security.
The
rate
disclosed
is
the
rate
in
effect
at
June
30,
2026.
(c)
Security
was
fair
valued
based
upon
procedures
approved
by
the
Board
of
Trustees
and
represents
0.3%
of
net
assets
as
of
June
30,
2026.
This
security
is
classified
as
Level
3
within
the
fair
value
hierarchy
based
on
significant
unobservable
inputs.
(See
Note
2
in
the
Notes
to
Financial
Statements)
(d)
Zero-coupon
bond.
(e)
Variable
or
Floating-Rate
Security.
Rate
disclosed
is
as
of
June
30,
2026.
(f)
Security
is
interest
only.
(g)
Amount
represents
less
than
0.05%
of
net
assets.
(h)
Non-income
producing
security.
(i)
Rounds
to
less
than
$1
thousand.
(j)
Security
is
perpetual
and
has
no
final
maturity
date
but
may
be
subject
to
calls
at
various
dates
in
the
future.
(k)
Currently
the
issuer
is
in
default
with
respect
to
interest
and/or
principal
payments.
(l)
Up
to
8.00%
of
the
coupon
may
be
PIK.
(m)
Stepped
coupon
security
for
which
the
coupon
rate
of
interest
adjusts
on
specified
date(s);
rate
shown
is
effective
rate
at
period-end.
(n)
Rate
represents
the
effective
yield
at
June
30,
2026.
ABS
—
Asset-Backed
Securities
bps
—
Basis
points
CLO
—
Collateralized
Loan
Obligations
CMO
—
Collateralized
Mortgage
Obligations
FREMF
—
Freddie
Mac
Multifamily
Fixed-Rate
Mortgage
Loans
H15T1Y
—
1
Year
Treasury
Constant
Maturity
Rate,
rate
disclosed
as
of
June
30,
2026.
H15T5Y
—
5
Year
Treasury
Constant
Maturity
Rate,
rate
disclosed
as
of
June
30,
2026.
H15T10Y
—
10
Year
Treasury
Constant
Maturity
Rate,
rate
disclosed
as
of
June
30,
2026.
ICE
—
Intercontinental
Exchange,
Inc.
IBA
—
ICE
Benchmark
Administration
Limited
LLC
—
Limited
Liability
Company
LP
—
Limited
Partnership
MBS
—
Mortgage-Backed
Securities
MTN
—
Medium
Term
Note
PIK
—
Payment-in-Kind
REMIC
—
Real
Estate
Mortgage
Investment
Conduits
SOFR
—
Secured
Overnight
Financing
Rate
SOFR01M
—
1
Month
SOFR,
rate
disclosed
as
of
June
30,
2026.
SOFR03M
—
3
Month
SOFR,
rate
disclosed
as
of
June
30,
2026.
SOFR30A
—
30
day
average
of
SOFR,
rate
disclosed
as
of
June
30,
2026.
STACR
—
Structured
Agency
Credit
Risk
TBA
—
To
Be
Announced
Securities
TSFR1M
—
1
Month
Term
SOFR,
rate
disclosed
as
of
June
30,
2026.
TSFR3M
—
3
Month
Term
SOFR,
rate
disclosed
as
of
June
30,
2026.
US0003M
—
3
Month
US
Dollar
London
Interbank
Offered
Rate,
rate
disclosed
as
of
June
30,
2026,
based
on
the
last
reset
date
of
the
security.
USISOA05
—
ICE
IBA
-
USD
SOFR
Spread-Adjusted
ICE
5
Year
Swap
Rate,
rate
disclosed
as
of
June
30,
2026.
TBA
Sales
Commitments
Security
Description
Principal
Amount
(000)
Value
(000)
TBA
Sales
Commitments
-
(1.90%)
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Strategic
Income
VCT
Portfolio
13
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
June
30,
2026
See
notes
to
financial
statements.
Security
Description
Principal
Amount
(000)
Value
(000)
Collateralized
Mortgage
Obligations
—  (1.90%)
Federal
National
Mortgage
Association,
TBA
2.50
%
,
8/25/56
....................................................
$
(
300
)
$
(
251
)
6.00
%
,
7/25/56
....................................................
(
200
)
(
204
)
6.50
%
,
8/25/56
....................................................
(
100
)
(
103
)
Total
TBA
Sales
Commitments
(Proceeds  $558)
$(558)
Forward
Currency
Contracts
At
June
30,
2026,
the
Fund's
open
forward
currency
contracts
were
as
follows:
Currency
Purchased
In
Exchange
for
(000)
Currency
Sold
Deliver
(000)
Counterparty
Settlement
Date
Net
Unrealized
Appreciation/
(Depreciation)
(000)
U.S.
Dollar
212
Australian
Dollar
293
State
Street
7/24/26
$
9
U.S.
Dollar
128
Kazakhstani
Tenge
61,700
Citibank
NA
7/29/26
–
*
U.S.
Dollar
79
Kazakhstani
Tenge
38,000
Citibank
NA
7/29/26
1
U.S.
Dollar
844
European
Euro
723
State
Street
8/21/26
16
U.S.
Dollar
153
Indian
Rupee
14,530
Citibank
NA
9/25/26
1
Turkish
Lira
8,585
U.S.
Dollar
153
State
Street
1/7/27
4
$
31
Australian
Dollar
293
U.S.
Dollar
210
Citibank
NA
7/24/26
(
7
)
European
Euro
38
U.S.
Dollar
45
State
Street
7/24/26
(
1
)
European
Euro
364
U.S.
Dollar
429
State
Street
7/24/26
(
13
)
Japanese
Yen
12,000
U.S.
Dollar
76
State
Street
7/28/26
(
2
)
Japanese
Yen
35,820
U.S.
Dollar
226
State
Street
7/28/26
(
5
)
U.S.
Dollar
98,500
Kazakhstani
Tenge
206
Citibank
NA
7/29/26
(
1
)
Korean
Won
206,000
U.S.
Dollar
134
Citibank
NA
9/23/26
(
1
)
Chilean
Peso
272,000
U.S.
Dollar
304
Citibank
NA
9/25/26
(
9
)
U.S.
Dollar
71
Canadian
Dollar
100
Citibank
NA
9/25/26
–
*
U.S.
Dollar
27
Mexican
Peso
485
Citibank
NA
9/25/26
–
*
U.S.
Dollar
39
European
Euro
34
State
Street
9/25/26
–
*
Japanese
Yen
44,000
U.S.
Dollar
274
State
Street
9/29/26
(
1
)
U.S.
Dollar
67
Turkish
Lira
3,720
Citibank
NA
1/7/27
(
2
)
U.S.
Dollar
80
Turkish
Lira
4,560
Citibank
NA
1/7/27
(
4
)
U.S.
Dollar
5
Turkish
Lira
305
Citibank
NA
1/7/27
–
*
$
(
46
)
Total
Net
Forward
Currency
Contracts
$
(
15
)
*
Rounds
to
less
than
$1
thousand.
Futures
Contracts
Purchased
Number
of
Contracts
Expiration
Date
Notional
Amount
(000)
Value
(000)
Unrealized
Appreciation
(Depreciation)
(000)
10-Year
U.S.
Treasury
Note
Futures
......
5
9/21/26
$
546
$
549
$
3
2-Year
U.S.
Treasury
Note
Futures
.......
10
9/30/26
2,063
2,061
(
2
)
30-Year
U.S.
Treasury
Bond
Futures
.....
5
9/21/26
555
568
13
Australian
3-Year
Bond
Future
.........
18
9/15/26
1,303
1,303
—
*
U.S.
10-Year
Ultra
Futures
............
2
9/21/26
222
225
3
Ultra
Long
Term
U.S.
Treasury
Bond
Futures
3
9/21/26
338
348
10
$
27
Futures
Contracts
Sold
Number
of
Contracts
Expiration
Date
Notional
Amount
(000)
Value
(000)
Unrealized
Appreciation
(Depreciation)
(000)
Euro
Bund
Future
...................
6
9/8/26
$
866
$
873
$
(
7
)
Total
unrealized
appreciation
$
29
Total
unrealized
depreciation
(
9
)
Total
net
unrealized
appreciation
(depreciation)
$
20
*
Rounds
to
less
than
$1
thousand.
Victory
Variable
Insurance
Funds
II
Victory
Pioneer
Strategic
Income
VCT
Portfolio
14
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
June
30,
2026
See
notes
to
financial
statements.
Centrally
Cleared
Credit
Default
Swap
Agreements
-
Sell
Protection
Underlying
Instruments
Fixed
Deal
Receive
Rate
Maturity
Date
Payment
Frequency
Notional
Amount
(000)
Value
(000)
Premiums
Paid
(Received)
(000)
Unrealized
Appreciation
(Depreciation)
(000)
Oracle
Corp.
..........................
1.00%
12/20/30
Quarterly
$
37
$
(
3
)
$
(
3
)
$
0
*
American
Airlines
Group,
Inc.
..............
5.00%
6/20/30
Quarterly
25
5
(
5
)
10
$
2
$
(
8
)
$
10
Centrally
Cleared
Credit
Default
Swap
Agreements
-
Buy
Protection(a)
Underlying
Instruments
Fixed
Deal
Pay
Rate
Maturity
Date
Payment
Frequency
Notional
Amount
(000)(b)
Value
(000)
Premiums
Paid
(Received)
(000)
Unrealized
Appreciation
(Depreciation)
(000)
Markit
CDX
North
America
High
Yield
Index
Series
46
...........................
5.00%
6/20/31
Quarterly
$
703
$
(
58
)
$
(
62
)
$
4
Oracle
Corp.
..........................
1.00%
6/20/31
Quarterly
75
(
2
)
$
(
2
)
(
1
)
$
(
60
)
$
(
64
)
$
3
*
Rounds
to
less
than
$1
thousand.
(a)
When
a
credit
event
occurs
as
defined
under
the
terms
of
the
swap
agreement,
the
Fund
as
a
buyer
of
credit
protection
will
either
(i)
receive
from
the
seller
of
protection
an
amount
equal
to
the
par
value
of
the
defaulted
reference
entity
and
deliver
the
reference
entity
or
(ii)
receive
a
net
amount
equal
to
the
par
value
of
the
defaulted
reference
entity
less
its
recovery
value.  
(b)
The
notional
amount
is
the
maximum
amount
that
a
seller
of
credit
protection
would
be
obligated
to
pay
upon
occurrence
of
a
credit
event.
Statement
of
Assets
and
Liabilities
June
30,
2026
15
See
notes
to
financial
statements.
Victory
Variable
Insurance
Funds
II
(Amounts
in
Thousands,
Except
Per
Share
Amounts)
(Unaudited)
Victory
Pioneer
Strategic
Income
VCT
Portfolio
Assets:
Affiliated
investments,
at
value
(Cost
$1,401)
$
1,505
Unaffiliated
investments,
at
value
(Cost
$29,905)
29,206
Foreign
currency,
at
value
(Cost
$60)
60
Cash
402
Futures
contracts
collateral
65
Swap
agreements
collateral
189
Unrealized
appreciation
on
forward
currency
contracts
31
Due
from
broker
26
Receivables:
Dividends
and
interest
283
Capital
shares
issued
—
(a)
Investments
sold
4,485
From
Adviser
11
Variation
margin
on
open
swap
agreements
1
Prepaid
expenses
—
(a)
Total
Assets
36,264
Liabilities:
Payables:
Investments
purchased
6,377
Capital
shares
redeemed
5
Unrealized
depreciation
on
forward
currency
contracts
46
Variation
margin
on
open
futures
contracts
8
TBA
sales
commitments,
at
value
(Proceeds
$558)
558
Accrued
expenses
and
other
payables:
Investment
advisory
fees
16
12b-1
fees
3
Other
accrued
expenses
26
Total
Liabilities
7,039
Commitments
and
contingencies
(Note
4
)
Net
Assets:
Capital
32,565
Total
accumulated
earnings
(loss)
(
3,340
)
Net
Assets
$
29,225
Net
Assets:
Class
I
$
4,207
Class
II
25,018
Total
$
29,225
Shares
(unlimited
number
of
shares
authorized
with
a
par
value
of
$0.001
per
share):
Class
I
452
Class
II
2,689
Total
3,141
Net
asset
value,
offering
and
redemption
price
per
share:(b)
Class
I
$
9.32
Class
II
9.30
(a)
Rounds
to
less
than
$1
thousand.
(b)
Per
share
amount
may
not
recalculate
due
to
rounding
of
net
assets
and/or
shares
outstanding.
Statement
of
Operations
For
the
Six
Months
Ended
June
30,
2026
16
See
notes
to
financial
statements.
Victory
Variable
Insurance
Funds
II
(Amounts
in
Thousands)
(Unaudited)
Victory
Pioneer
Strategic
Income
VCT
Portfolio
Investment
Income:
Dividends
$
17‌
Interest
726‌
Foreign
tax
withholding
(4‌)
Total
Income
739‌
Expenses:
Investment
advisory
fees
95‌
Administration
fees
6‌
Sub-Administration
fees
6‌
12b-1
fees
—
Class
II
31‌
Custodian
fees
2‌
Trustees'
fees
3‌
Legal
and
audit
fees
28‌
Other
expenses
4‌
Recoupment
of
prior
expenses
waived/reimbursed
by
Adviser
1‌
Total
Expenses
176‌
Less
fees
paid
indirectly
—‌(a)
Expenses
waived/reimbursed
by
Adviser
(35‌)
Net
Expenses
141‌
Net
Investment
Income
(Loss)
598‌
Realized/Unrealized
Gains
(Losses)
from
Investments:
Net
realized
gains
(losses)
from
unaffiliated
investment
securities
and
foreign
currency
transactions
5‌
Net
realized
gains
(losses)
from
TBA
sales
commitments
12‌
Net
realized
gains
(losses)
from
forward
foreign
currency
exchange
contracts
46‌
Net
realized
gains
(losses)
from
futures
contracts
(92‌)
Net
realized
gains
(losses)
from
swap
agreements
(9‌)
Net
change
in
unrealized
appreciation/depreciation
on
affiliated
investment
securities
123‌
Net
change
in
unrealized
appreciation/depreciation
on
unaffiliated
investment
securities
and
foreign
currency
translations
(340‌
)
Net
change
in
unrealized
appreciation/depreciation
on
TBA
sales
commitments
(3‌)
Net
change
in
unrealized
appreciation/depreciation
on
forward
foreign
currency
exchange
contracts
(15‌)
Net
change
in
unrealized
appreciation/depreciation
on
futures
contracts
63‌
Net
change
in
unrealized
appreciation/depreciation
on
swap
agreements
5‌
Net
realized/unrealized
gains
(losses)
on
investments
(205‌)
Change
in
net
assets
resulting
from
operations
$
393‌
(a)
Rounds
to
less
than
$1
thousand.
17
(Amounts
in
Thousands)
Victory
Variable
Insurance
Funds
II
Statements
of
Changes
in
Net
Assets
See
notes
to
financial
statements.
Victory
Pioneer
Strategic
Income
VCT
Portfolio
Six
Months
Ended
June
30,
2026
(Unaudited)
Year
Ended
December
31,
2025*
From
Investment
Activities:
Operations:
Net
Investment
Income
(Loss)
$
598‌
$
1,407‌
Net
realized
gains
(losses)
(38‌)
329‌
Net
change
in
unrealized
appreciation/depreciation
(167‌)
1,234‌
Change
in
net
assets
resulting
from
operations
393‌
2,970‌
Distributions
to
Shareholders:
Class
I
(97‌)
(188‌)
Class
II
(
536‌)
(1,100‌)
Change
in
net
assets
resulting
from
distributions
to
shareholders
(633‌)
(1,288‌)
Change
in
net
assets
resulting
from
capital
transactions
772‌
(2,970‌)
Change
in
net
assets
532‌
(1,288‌)
Net
Assets:
Beginning
of
period
28,693‌
29,981‌
End
of
period
$
29,225‌
$
28,693‌
*
Pioneer
Strategic
Income
VCT
Portfolio
(the
“Predecessor
Fund”)
reorganized
with
the
Fund
effective
April
1,
2025
(the
“Reorganization”).
The
Predecessor
Fund
is
the
accounting
survivor
of
the
Reorganization
and
shareholders
holding
Class
I
and
Class
II
shares
of
the
Predecessor
Fund
received
Class
I
and
Class
II
shares
of
the
Fund,
respectively.
18
(Amounts
in
Thousands)
Victory
Variable
Insurance
Funds
II
Statements
of
Changes
in
Net
Assets
(continued)
See
notes
to
financial
statements.
Victory
Pioneer
Strategic
Income
VCT
Portfolio
Six
Months
Ended
June
30,
2026
(Unaudited)
Year
Ended
December
31,
2025*
Capital
Transactions:
Class
I
Proceeds
from
shares
issued
$
86‌
$
430‌
Distributions
reinvested
97‌
188‌
Cost
of
shares
redeemed
(286‌)
(502‌)
Total
Class
I
$
(103‌)
$
116‌
Class
II
Proceeds
from
shares
issued
$
5,166‌
$
4,460‌
Distributions
reinvested
536‌
1,100‌
Cost
of
shares
redeemed
(4,827‌)
(8,646‌)
Total
Class
II
$
875‌
$
(3,086‌)
Change
in
net
assets
resulting
from
capital
transactions
$
772‌
$
(2,970‌)
Share
Transactions:
Class
I
Issued
9‌
47‌
Reinvested
10‌
20‌
Redeemed
(30‌)
(55‌)
Total
Class
I
(11‌)
12‌
Class
II
Issued
550‌
494‌
Reinvested
57‌
120‌
Redeemed
(516‌)
(957‌)
Total
Class
II
91‌
(343‌)
Change
in
Shares
80‌
(332‌)
*
Pioneer
Strategic
Income
VCT
Portfolio
(the
“Predecessor
Fund”)
reorganized
with
the
Fund
effective
April
1,
2025
(the
“Reorganization”).
The
Predecessor
Fund
is
the
accounting
survivor
of
the
Reorganization
and
shareholders
holding
Class
I
and
Class
II
shares
of
the
Predecessor
Fund
received
Class
I
and
Class
II
shares
of
the
Fund,
respectively.
Victory
Variable
Insurance
Funds
II
Financial
Highlights
For
a
Share
Outstanding
Throughout
Each
Period
19
See
notes
to
financial
statements.
NOTE:
The
above
financial
highlights
do
not
reflect
the
deduction
of
non-fund
expenses
associated
with
variable
insurance
products,
such
as
mortality
and
expense
risk
charges,
separate
account
charges,
and
sales
charges.
Victory
Pioneer
Strategic
Income
VCT
Portfolio
Class
I*
Six
Months
Ended
June
30,
2026
(Unaudited)
Year
Ended
December
31,
2025
Year
Ended
December
31,
2024
Year
Ended
December
31,
2023
Year
Ended
December
31,
2022
Year
Ended
December
31,
2021
Net
Asset
Value,
Beginning
of
Period
$9.39
$8.85
$8.87
$8.50
$10.44
$10.69
Investment
Activities:
Net
investment
income
(loss)(a)
0.20
0.46
0.46
0.42
0.33
0.28
Net
realized
and
unrealized
gains
(losses)
(0.06)
0.50
(0.10)
0.28
(1.63)
(0.08)
Total
from
Investment
Activities
0.14
0.96
0.36
0.70
(1.30)
0.20
Distributions
to
Shareholders
from:
Net
investment
income
(0.21)
(0.42)
(0.38)
(0.33)
(0.12)
(0.35)
Net
realized
gains
—
—
—
—
(0.35)
(0.10)
Return
of
capital
—
—
—
—
(0.17)
—
Total
Distributions
(0.21)
(0.42)
(0.38)
(0.33)
(0.64)
(0.45)
Net
Asset
Value,
End
of
Period
$9.32
$9.39
$8.85
$8.87
$8.50
$10.44
Total
Return(b)(c)
1.52%
11.11%
4.13%
8.46%(d)
(12.60)%
1.89%
Ratios
to
Average
Net
Assets:
Net
Expenses(e)(f)
0.75%(g)
0.75%
0.75%
0.75%
0.75%
0.75%
Net
Investment
Income
(Loss)(e)
4.32%
5.09%
5.22%
4.94%
3.58%
2.66%
Gross
Expenses(e)(f)
0.99%(g)
1.00%
1.08%
1.25%
1.07%
1.21%
Supplemental
Data:
Net
Assets
at
end
of
period
(000's)
$4,207
$4,343
$3,992
$4,278
$4,326
$5,913
Portfolio
Turnover(b)(h)
95%
48%
57%
53%
71%
65%
*
Pioneer
Strategic
Income
VCT
Portfolio
(the
“Predecessor
Fund”)
reorganized
with
the
Fund
effective
April
1,
2025
(the
“Reorganization”).
The
Predecessor
Fund
is
the
accounting
survivor
of
the
Reorganization
and
shareholders
holding
Class
I
and
Class
II
shares
of
the
Predecessor
Fund
received
Class
I
and
Class
II
shares
of
the
Fund,
respectively.
(a)
Per
share
net
investment
income
(loss)
has
been
calculated
using
the
average
daily
shares
method.
(b)
Not
annualized
for
periods
less
than
one
year.
(c)
Assumes
reinvestment
of
all
net
investment
income
and
realized
capital
gain
distributions,
if
any,
during
the
period.
Includes
adjustments
in
accordance
with
U.S.
Generally
Accepted
Accounting
Principles
and
could
differ
from
the
reported
return.
(d)
For
the
year
ended
December
31,
2023,
the
Fund’s
total
return
includes
a
reimbursement
by
the
Adviser.
If
the
Portfolio
had
not
been
reimbursed
by
the
Adviser,
the
total
return
would
have
been
8.34%.
(e)
Annualized
for
periods
less
than
one
year.
(f)
Does
not
include
acquired
fund
fees
and
expenses,
if
any.
(g)
Reflects
total
annual
operating
expenses
before
reductions
of
any
expenses
paid
indirectly.
The
Fund's
expenses
paid
indirectly
decreased
the
expense
ratios
by
less
than
0.01%.
(h)
Portfolio
turnover
is
calculated
on
the
basis
of
the
Fund
as
a
whole
without
distinguishing
between
the
classes
of
shares.
Victory
Variable
Insurance
Funds
II
Financial
Highlights
—
continued
For
a
Share
Outstanding
Throughout
Each
Period
20
See
notes
to
financial
statements.
NOTE:
The
above
financial
highlights
do
not
reflect
the
deduction
of
non-fund
expenses
associated
with
variable
insurance
products,
such
as
mortality
and
expense
risk
charges,
separate
account
charges,
and
sales
charges.
Victory
Pioneer
Strategic
Income
VCT
Portfolio
Class
II*
Six
Months
Ended
June
30,
2026
(Unaudited)
Year
Ended
December
31,
2025
Year
Ended
December
31,
2024
Year
Ended
December
31,
2023
Year
Ended
December
31,
2022
Year
Ended
December
31,
2021
Net
Asset
Value,
Beginning
of
Period
$9.37
$8.83
$8.85
$8.49
$10.43
$10.67
Investment
Activities:
Net
investment
income
(loss)(a)
0.19
0.44
0.44
0.40
0.31
0.25
Net
realized
and
unrealized
gains
(losses)
(0.06)
0.50
(0.10)
0.27
(1.63)
(0.07)
Total
from
Investment
Activities
0.13
0.94
0.34
0.67
(1.32)
0.18
Distributions
to
Shareholders
from:
Net
investment
income
(0.20)
(0.40)
(0.36)
(0.31)
(0.10)
(0.32)
Net
realized
gains
—
—
—
—
(0.35)
(0.10)
Return
of
capital
—
—
—
—
(0.17)
—
Total
Distributions
(0.20)
(0.40)
(0.36)
(0.31)
(0.62)
(0.42)
Net
Asset
Value,
End
of
Period
$9.30
$9.37
$8.83
$8.85
$8.49
$10.43
Total
Return(b)(c)
1.39%
10.85%
3.87%
8.07%(d)
(12.83)%
1.73%
Ratios
to
Average
Net
Assets:
Net
Expenses(e)(f)
1.00%(g)
1.00%
1.00%
1.00%
1.00%
1.00%
Net
Investment
Income
(Loss)(e)
4.07%
4.80%
4.99%
4.68%
3.32%
2.40%
Gross
Expenses(e)(f)
1.24%(g)
1.25%
1.33%
1.50%
1.32%
1.46%
Supplemental
Data:
Net
Assets
at
end
of
period
(000's)
$25,018
$24,350
$25,989
$26,335
$28,151
$38,767
Portfolio
Turnover(b)(h)
95%
48%
57%
53%
71%
65%
*
Pioneer
Strategic
Income
VCT
Portfolio
(the
“Predecessor
Fund”)
reorganized
with
the
Fund
effective
April
1,
2025
(the
“Reorganization”).
The
Predecessor
Fund
is
the
accounting
survivor
of
the
Reorganization
and
shareholders
holding
Class
I
and
Class
II
shares
of
the
Predecessor
Fund
received
Class
I
and
Class
II
shares
of
the
Fund,
respectively.
(a)
Per
share
net
investment
income
(loss)
has
been
calculated
using
the
average
daily
shares
method.
(b)
Not
annualized
for
periods
less
than
one
year.
(c)
Assumes
reinvestment
of
all
net
investment
income
and
realized
capital
gain
distributions,
if
any,
during
the
period.
Includes
adjustments
in
accordance
with
U.S.
Generally
Accepted
Accounting
Principles
and
could
differ
from
the
reported
return.
(d)
For
the
year
ended
December
31,
2023,
the
Fund’s
total
return
includes
a
reimbursement
by
the
Adviser.
The
impact
on
Class
II’s
total
return
was
less
than
0.005%.
(e)
Annualized
for
periods
less
than
one
year.
(f)
Does
not
include
acquired
fund
fees
and
expenses,
if
any.
(g)
Reflects
total
annual
operating
expenses
before
reductions
of
any
expenses
paid
indirectly.
The
Fund's
expenses
paid
indirectly
decreased
the
expense
ratios
by
less
than
0.01%.
(h)
Portfolio
turnover
is
calculated
on
the
basis
of
the
Fund
as
a
whole
without
distinguishing
between
the
classes
of
shares.
Notes
to
Financial
Statements
June
30,
2026
Victory
Variable
Insurance
Funds
II
21
(Unaudited)
1.
Organization:
Victory
Variable
Insurance Funds
II
(the
“Trust”)
is
organized
as
a
Delaware
statutory
trust
and
is
registered
under
the Investment
Company
Act
of
1940,
as
amended
(the
“1940
Act”),
as
an
open-end
investment
company.
The
Trust
is
comprised
of seven funds
and
is
authorized
to
issue
an
unlimited
number
of
shares,
which
are
units
of
beneficial
interest
with a
par
value
of
$0.001
per
share.
The
Fund's
shares
are
only
available
for
purchase
by
insurance
companies
for
funding
variable
annuity
and
variable
life
insurance
contracts
or
by
qualified
pension
and
retirement
plans.
The
accompanying
financial
statements
are
those
of
the
following
fund
(the
"Fund").
The
fund
is
classified
as
diversified
under
the
1940
Act.
Each
class
of
shares
of the
Fund
has
substantially
identical
rights
and
privileges
except
with
respect
to
sales
charges,
fees
paid
under
distribution
plans,
expenses
allocable
exclusively
to
each
class
of
shares,
voting
rights
on
matters
solely
affecting
a
single
class
of
shares,
and
the
exchange
privilege
of
each
class
of
shares.
 Victory
Capital
Management
Inc.
(“VCM”
or
the
“Adviser”)
is
an
indirect
wholly
owned
subsidiary
of
Victory
Capital
Holdings,
Inc.,
a
publicly
traded
Delaware
corporation,
and
a
wholly
owned
direct
subsidiary
of
Victory
Capital
Operating,
LLC.
Under
the
Trust’s
organizational
documents,
its
officers
and
trustees
are
indemnified
against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Fund.
In
addition,
in
the
normal
course
of
business,
the
Fund
enters
into
contracts
with
its
vendors
and
others
that
provide
for
general
indemnifications.
The
Fund’s
maximum
exposure
under
these
arrangements
is
unknown,
as
this
would
involve
future
claims
that
may
be
made
against
the
Fund.
However,
based
on
experience,
the
Fund
expects
that
risk
of
loss
to
be
remote.
The Fund,
which
commenced
operations
on
April
1,
2025,
is
the
successor
to
the
Pioneer Strategic
Income VCT
Portfolio
(the
“Predecessor
Fund”).
The
Predecessor Fund
transferred
all
of
the
net
assets
of
Class
I
and Class
II
shares
in
exchange
for
the
Fund’s
Class
I  and
Class II
shares,
respectively,
on
April
1,
2025
pursuant
to
an
agreement
and
plan
of
reorganization
(the
“Reorganization”)
which
was
approved
by
the
shareholders
of
the
Predecessor Fund
on
March
27,
2025.
The
Reorganization
was
structured
so
that
the
transfer
of
assets
and
liabilities
did
not
result
in
federal
tax
liability
to
the
Predecessor
Fund or
its
shareholders.
Shareholders
holding
Class
I
and
Class
II shares
of
the
Predecessor Fund
received
Class
I
and
Class II
shares
of
the
Fund,
respectively,
in
the
Reorganization.
The
Predecessor Fund
was
the
accounting
survivor
of
the
Reorganization.
Accordingly,
the
Predecessor
Fund’s
performance
and
financial
history
have
become
the
performance
and
financial
history
of
the
Fund.
The
Fund’s
investment
objective
is
to seek
a
high
level
of
current
income.
Effective
April
1,
2025, VCM
serves
as
the
Fund’s
investment
adviser,
succeeding
Amundi
Asset
Management
US,
Inc.
(“Amundi
US”).
On
the
same
date,
Victory
Capital
Services,
Inc.
(the
“Distributor”),
an
affiliate
of
the
Adviser,
became
the
Distributor
for
the
Fund's
shares,
succeeding
Amundi
Distributor
US,
Inc.
The
Distributor
receives
no
fee
or
other
compensation
for
these
services
(See
Note
4).
On
September
30,
2025,
the
Trust’s
Board
of
Trustees
(the
“Board”),
upon
the
recommendation
of
the
Adviser,
approved
a
change
in
the
Fund's
custodian,
sub-administrator,
sub-fund
accountant,
and
transfer
agent.
Effective
as
of
February
9,
2026, Citibank,
N.A.
serves
as
the
custodian
of
the
Fund,
Citi
Fund
Services
Ohio,
Inc.
serves
as
sub-administrator
and
sub-fund
accountant
of
the
Fund
and
FIS
Investor
Services
LLC
serves
as
transfer
agent
of
the
Fund.
2.
Significant
Accounting
Policies:
The
following
is
a
summary
of
significant
accounting
policies
followed
by
the Fund
in
the
preparation
of
its
financial
statements.
The
policies
are
in
conformity
with
U.S.
Generally
Accepted
Accounting
Principles
(“GAAP”).
The
preparation
of
financial
statements
in
accordance
with
GAAP
requires
the
Adviser
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
and
disclosure
of
contingent
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
reported
amounts
of
income
and
expenses
for
the
period.
Actual
results
could
differ
from
those
estimates.
The
Fund
follows
the
specialized
accounting
and
reporting
requirements
under
GAAP
that
are
applicable
to
investment
companies
under
Accounting
Standards
Codification Topic 946.
Investment
Valuation: 
The
Fund
records
investments
at
fair
value.
Fair
value
is
defined
as
the
price
that
would
be
received
to sell
an asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
at
the
measurement
date.
The
valuation
techniques
described
below
maximize
the
use
of
observable
inputs
and
minimize
the
use
of
unobservable
inputs
in
determining
fair
value.
The
inputs
used
for
valuing
the
Fund’s
investments
are
summarized
in
the
three
broad
levels
listed
below:
Level
1
—
quoted
prices
(unadjusted)
in
active
markets
for
identical
securities
Level
2
—
other
significant
observable
inputs
(including
quoted
prices
for
similar
securities,
interest
rates,
or
credit
spreads,
applicable
to
those
securities,
etc.)
Level
3
—
significant
unobservable
inputs
(including
the
Adviser’s
assumptions
in
determining
the
fair
value
of
investments)
Changes
in
valuation
techniques
may
result
in
transfers
in
or
out
of
an
assigned
level
within
the
disclosure
hierarchy.
The
inputs
or
methodologies
used
for
valuation
techniques
are
not
necessarily
an
indication
of
the
risks
associated
with
entering
into
those
investments.
The Adviser,
appointed
as
the
valuation
designee
by the
Trust's
Board
of
Trustees
(the
“Board”), has
established
the
Pricing
Committee
(the
“Committee”),
and
subject
to
Board
oversight,
the
Committee
administers
and
oversees
the
Fund’s
valuation
policies
and
procedures,
which
are
approved
by
the
Board.
Fund
(Legal
Name)
Fund
(Short
Name)
Investment
Share
Classes
Offered
Victory
Pioneer
Strategic
Income
VCT
Portfolio
Strategic
Income
VCT
Portfolio
Class
I
and
Class
II
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
22
(Unaudited)
Portfolio
securities
listed
or
traded
on
securities
exchanges,
including
Exchange-Traded
Funds
(“ETFs”),
and
American
Depositary
Receipts,
are
valued
at
the
closing
price
on
the
exchange
or
system
where
the
security
is
principally
traded,
if
available,
or
at
the
Nasdaq
Official
Closing
Price.
If
there
have
been
no
sales
for
that
day
on
the
exchange
or
system,
then
a
security
is
valued
at
the
last
available
bid
quotation
on
the
exchange
or
system
where
the
security
is
principally
traded.
In
each
of
these
situations,
valuations
are
typically
categorized
as
Level
1
in
the
fair
value
hierarchy.
Investments
in
open-end
investment
companies,
other
than
ETFs, are
valued
at their
net
asset
value
(“NAV”).
These
valuations
are
typically
categorized
as
Level
1 in
the
fair
value
hierarchy.
Debt
securities
are
valued
each
business
day
by
a
pricing
service
approved
by
the
valuation
designee
and
subject
to
the
oversight
of
the
Board.
The
pricing
service
uses
the
evaluated
bid
or market
quotes to
value
securities.
Debt
obligations
maturing
within
60
days
may
be
valued
at
amortized
cost,
provided
that
the
amortized
cost
represents
the
fair
value
of
such
securities.
These
valuations
are
typically
categorized
as
Level
2
in
the
fair
value
hierarchy.
Loan
interests
are
valued
at
the
mean
between
the
last
available
bid
and
asked
prices
from
one
or
more
brokers
or
dealers
as
obtained
from
an
independent
third
party
pricing
service.
If
price
information
is
not
available,
or
if
the
price
information
is
deemed
to
be
unreliable,
price
information
will
be
obtained
from
an
alternative
loan
interest
pricing
service.
If
no
reliable
price
quotes
are
available
from
either
the
primary
or
alternative
pricing
service,
broker
quotes
will
be
solicited.
These
valuations
are
typically
categorized
as
Level
2
in
the
fair
value
hierarchy.
Futures
contracts
are
valued
at
the
settlement
price
established
each
day
by
the
board
of
trade
or
an
exchange
on
which
they
are
traded.
These
valuations
are
typically
categorized
as
Level
1
in
the
fair
value
hierarchy.
Forward
foreign
currency
exchange
contracts
are
valued
daily
using
the
foreign
exchange
rate
or,
for
longer
term
forward
contract
positions,
the
spot
currency
rate
and
the
forward
points
on
a
daily
basis,
in
each
case
provided
by
a
third
party
pricing
service.
Contracts
whose
forward
settlement
date
falls
between
two
quoted
days
are
valued
by
interpolation.
Swap
agreements,
including
interest
rate
swaps,
caps
and
floors
(other
than
centrally
cleared
swap
contracts)
are
valued
at
the
mean
between
the
current
bid
and
ask
prices.
Centrally
cleared
swaps
are
valued
at
the
daily
settlement
price
provided
by
the
central
clearing
counterparty.  To
the
extent
this
model
is
utilized,
these
valuations
are
considered
as
Level
2
in
the
fair
value
hierarchy.
In
the
event
that
price
quotations
or
valuations
are
not
readily
available,
investments
are
valued
at
fair
value
in
accordance
with
procedures
established
by
and
under
the
general
supervision
and
responsibility
of
the
Board.
These
valuations
are
typically
categorized
as
Level
2
or
Level
3
in
the
fair
value
hierarchy,
based
on
the
observability
of
inputs
used
to
determine
the
fair
value.
The
effect
of
fair
value
pricing
is
that
securities
may
not
be
priced
on
the
basis
of
quotations
from
the
primary
market
in
which
they
are
traded
and
the
actual
price
realized
from
the
sale
of
a
security
may
differ
materially
from
the
fair
value
price.
Valuing
these
securities
at
fair
value
is
intended
to
cause
the
Fund’s
net
asset
value to
be
more
reliable
than
it
otherwise
would
be.
The
principal
exchanges
and
markets
for
non-U.S.
equity
securities
have
closing
times
prior
to
the
close
of
the
New
York
Stock
Exchange.
However,
the
value
of
these
securities
may
be
influenced
by
changes
in
global
markets
occurring
after
the
closing
times
of
the
local
exchanges
and
markets
up
to
the
time
the
Fund
determines
its
net
asset
value.
Consequently,
the
Fund
uses
a
fair
value
model
developed
by
an
independent
pricing
service
to
value
non-U.S.
equity
securities.
On
a
daily
basis,
the
pricing
service
recommends
changes,
based
on
a
proprietary
model,
to
the
closing
market
prices
of
each
non-U.S.
security
held
by
the
Fund
to
reflect
the
security’s
fair
value
at
the
time
the
Fund
determines
its
net
asset
value.
These
recommendations
are
applied
in
accordance
with
the
Adviser’s
(the
valuation
designee’s)
valuation
procedures.
These
valuations
are
typically
categorized
as
Level
2
in
the
fair
value
hierarchy.
A
summary
of
the
valuations
as
of
June
30,
2026, based
upon
the
three
levels
defined
above,
is
included
in
the
table
below
while
the
breakdown,
by
category,
of
investments
is
disclosed
on
the
Schedule
of
Portfolio
Investments
(amounts
in
thousands):
Level
1
Level
2
Level
3
Total
Strategic
Income
VCT
Portfolio
Asset-Backed
Securities
.........................................
$
—
$
1,180
$
89
$
1,269
Collateralized
Loan
Obligations
...................................
—
200
—
200
Collateralized
Mortgage
Obligations
................................
—
2,884
—
2,884
Common
Stocks
...............................................
27
—
—(a)
27
Preferred
Stocks
...............................................
186
—
—
186
Convertible
Corporate
Bonds
.....................................
—
71
—
71
Convertible
Preferred
Stocks
......................................
45
—
—
45
Senior
Secured
Loans
...........................................
—
334
—
334
Corporate
Bonds
..............................................
—(b)
7,400
—(b)
7,400
Yankee
Dollars
...............................................
—
5,499
—
5,499
U.S.
Government
Agency
Mortgages
................................
—
4,793
—
4,793
U.S.
Treasury
Obligations
........................................
—
5,201
—
5,201
Affiliated
Mutual
Funds
.........................................
1,505
—
—
1,505
Short-Term
Investments
.........................................
—
1,297
—
1,297
Total
.......................................................
$
1,763
$
28,859
$
89
$
30,711
Liabilities:
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
23
(Unaudited)
As
of June
30,
2026,
there
were
no
significant
transfers
into/out
of
Level
3.
Investment
Companies:
Open-End
Funds:
The
Fund
may
invest
in
portfolios
of
open-end
investment
companies.
These
investment
companies
value
securities
in
their
portfolios
for
which
market
quotations
are
readily
available
at
their
market
values
(generally
the
last
reported
sale
price)
and
all
other
securities
and
assets
at
their
fair
value
by
the
methods
established
by
the
board
of
directors
of
the
underlying
funds.
Below-Investment-Grade
Securities:
The
Fund
may
invest in
below-investment-grade
securities
(i.e.,
lower-quality,
“junk”
debt),
which
are
subject
to
various
risks.
Lower-quality
debt
is
considered
to
be
speculative
because
it
is
less
certain
that
the
issuer
will
be
able
to
pay
interest
or
repay
the
principal
than
in
the
case
of
investment-grade
debt.
These
securities
can
involve
a
substantially
greater
risk
of
default
than
higher-rated
securities,
and
their
values
can
decline
significantly
over
short
periods
of
time.
Lower-quality
debt
securities
tend
to
be
more
sensitive
to
adverse
news
about
their
issuers,
the
market
and
the
economy
in
general,
than
higher-quality
debt
securities.
The
market
for
these
securities
can
be
less
liquid,
especially
during
periods
of
recession
or
general
market
decline.
Securities
Purchased
on
a
Delayed-Delivery
or
When-Issued
Basis:
The
Fund
may
purchase
securities
on
a
delayed-delivery
or
when-issued
basis.
Delivery
and
payment
for
securities
that
have
been
purchased
by
the
Fund
on
a
delayed-delivery
or
when-issued
basis,
or
for
delayed
draws
on
loans
can
generally
take
place
within
35
days after
the
trade
date.
Securities
that
require
more
than
35
days
to
settle
are
considered
a
senior
security
and
subject
to
Rule
18f-4.
At
the
time
the
Fund
makes
the
commitment
to
purchase
a
security
on
a
delayed-delivery
or
when-issued
basis,
the
Fund
records
the
transaction
and
reflects
the
value
of
the
security
in
determining
NAV.
No
interest
accrues
to
the
Fund
until
the
transaction
settles
and
payment
takes
place. 
If
the
Fund
owns
delayed-
delivery
or
when-issued
securities,
these
values
are
included
in
Payables
for
Investments
purchased
on
the
accompanying
Statement
of
Assets
and
Liabilities.
Insurance-Linked
Securities
("ILS"):
The Fund
invests
in
ILS.
The Fund
could
lose
a
portion
or
all
of
the
principal
it
has
invested
in
an
ILS,
and
the
right
to
additional
interest
or
dividend
payments
with
respect
to
the
security,
upon
the
occurrence
of
one
or
more
trigger
events,
as
defined
within
the
terms
of
an
insurance-
linked
security.
Trigger
events,
generally,
are
hurricanes,
earthquakes,
or
other
natural
events
of
a
specific
size
or
magnitude
that
occur
in
a
designated
geographic
region
during
a
specified
time
period,
and/or
that
involve
losses
or
other
metrics
that
exceed
a
specific
amount.
There
is
no
way
to
accurately
predict
whether
a
trigger
event
will
occur,
and
accordingly,
ILS
carry
significant
risk.
The Fund
is
entitled
to
receive
principal,
and
interest
and/or
dividend
payments
so
long
as
no
trigger
event
occurs
of
the
description
and
magnitude
specified
by
the
instrument.
In
addition
to
the
specified
trigger
events,
ILS
may
expose
the Fund
to
other
risks,
including
but
not
limited
to
issuer
(credit)
default,
adverse
regulatory
or
jurisdictional
interpretations
and
adverse
tax
consequences.
The
Fund’s
investments
in
ILS
may
include
event-linked
bonds.
ILS
also
may
include
special
purpose
vehicles
(“SPVs”)
or
similar
instruments
structured
to
comprise
a
portion
of
a
reinsurer’s
catastrophe-oriented
business,
known
as
quota
share
instruments
(sometimes
referred
to
as
reinsurance
sidecars),
or
to
provide
reinsurance
relating
to
specific
risks
to
insurance
or
reinsurance
companies
through
a
collateralized
instrument,
known
as
collateralized
reinsurance.
Structured
reinsurance
investments
also
may
include
industry
loss
warranties
(“ILWs”).
A
traditional
ILW
takes
the
form
of
a
bilateral
reinsurance
contract,
but
there
are
also
products
that
take
the
form
of
derivatives,
collateralized
structures,
or
exchange-traded
instruments.
Level
1
Level
2
Level
3
Total
Strategic
Income
VCT
Portfolio,
continued
TBA
Sales
Commitments
........................................
$
—
$
(558)
$
—
$
(558)
Total
.......................................................
$
—
$
(558)
$
—
$
(558)
Other
Financial
Investments:*
Assets:
Credit
Default
Swap
Agreement
...................................
—
14
—
14
Forward
Currency
Contracts
......................................
—
31
—
31
Futures
Contracts
..............................................
29
—
—
29
Liabilities:
Credit
Default
Swap
Agreement
...................................
—
(1)
—
(1)
Forward
Currency
Contracts
......................................
—
(46)
—
(46)
Futures
Contracts
..............................................
(9)
—
—
(9)
Total
.......................................................
$
20
$
(2)
$
—
$
18
*
Swap
Agreements,
Futures
Contracts
and
Forward
Foreign
Currency
Exchange
Contracts
are
presented
at
the
unrealized
appreciation
(depreciation)
on
the
investment.
(a)
Rounds
to
less
than
$1
thousand.
(b)
Zero
market
value
securities.
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
24
(Unaudited)
Where
the
ILS
are
based
on
the
performance
of
underlying
reinsurance
contracts,
the Fund
has
limited
transparency
into
the
individual
underlying
contracts,
and
therefore
must
rely
upon
the
risk
assessment
and
sound
underwriting
practices
of
the
issuer.
Accordingly,
it
may
be
more
difficult
for
the
Adviser
to
fully
evaluate
the
underlying
risk
profile
of
the
Fund’s
structured
reinsurance
investments,
and
therefore
the
Fund’s
assets
are
placed
at
greater
risk
of
loss
than
if
the
Adviser
had
more
complete
information.
Structured
reinsurance
instruments
generally
will
be
considered
illiquid
securities
by
the
Fund.
These
securities
may
be
difficult
to
purchase,
sell
or
unwind.
Illiquid
securities
also
may
be
difficult
to
value.
If
the Fund
is
forced
to
sell
an
illiquid
asset,
the Fund
may
be
forced
to
sell
at
a
loss.
Mortgage-
and
Asset-Backed
Securities:
The
values
of
some
mortgage-related
or
asset-backed
securities
may
be
particularly
sensitive
to
changes
in
prevailing
interest
rates.
Early
repayment
of
principal
on
some
mortgage-related
securities
may
expose
the
Fund
to
a
lower
rate
of
return
upon
reinvestment
of
principal.
The
values
of
mortgage-
and
asset-backed
securities
depend
in
part
on
the
credit
quality
and
adequacy
of
the
underlying
assets
or
collateral
and
may
fluctuate
in
response
to
the
market’s
perception
of
these
factors
as
well
as
current
and
future
repayment
rates.
Some
mortgage-backed
securities
are
backed
by
the
full
faith
and
credit
of
the
U.S.
government
(e.g.,
mortgage-backed
securities
issued
by
the
Government
National
Mortgage
Association,
commonly
known
as
“Ginnie
Mae”),
while
other
mortgage-backed
securities
(e.g.,
mortgage-backed
securities
issued
by
the
Federal
National
Mortgage
Association
and
the
Federal
Home
Loan
Mortgage
Corporation,
commonly
known
as
“Fannie
Mae”
and
“Freddie
Mac,”
respectively),
are
backed
only
by
the
credit
of
the
government
entity
issuing
them.
In
addition,
some
mortgage-backed
securities
are
issued
by
private
entities
and,
as
such,
are
not
guaranteed
by
the
U.S.
government
or
any
agency
or
instrumentality
of
the
U.S.
government.
Loans:
Floating
rate
loans
in
which
the
Fund
invests
are
primarily
“senior”
loans.
Senior
floating
rate
loans
typically
hold
a
senior
position
in
the
capital
structure
of
the
borrower,
are
typically
secured
by
specific
collateral,
and
have
a
claim
on
the
assets
and/or
stock
of
the
borrower
that
is
senior
to
that
held
by
subordinated
debtholders
and
stockholders
of
the
borrower.
While
these
protections
may
reduce
risk,
these
investments
still
present
significant
credit
risk.
A
significant
portion
of
the
Fund’s
floating
rate
investments
may
be
issued
in
connection
with
highly
leveraged
transactions
such
as
leveraged
buyouts,
leveraged
recapitalization
loans,
and
other
types
of
acquisition
financing.
Obligations
in
these
types
of
transactions
are
subject
to
greater
credit
risk
(including
default
and
bankruptcy)
than
many
other
investments
and
may
be,
or
become,
illiquid.
See
note
regarding
below-investment-grade
securities.
The
Fund
may
purchase
second
lien
loans
(secured
loans
with
a
claim
on
collateral
subordinate
to
a
senior
lender’s
claim
on
such
collateral),
fixed
rate
loans,
unsecured
loans,
and
other
debt
obligations.
Transactions
in
loans
often
settle
on
a
delayed
basis,
and
the
Fund
may
not
receive
the
proceeds
from
the
sale
of
a
loan
or
pay
for
a
loan
purchase
for
a
substantial
period
of
time
after
entering
into
the
transactions.
Securities
Lending:
The
Fund,
through
a
Securities
Lending
Agreement
with
Citibank,
N.A.
(“Citibank”),
may
lend
its
securities
to
qualified
financial
institutions,
such
as
certain
broker-dealers
and
banks,
to
earn
additional
income,
net
of
income
retained
by
Citibank.
Borrowers
are
required
to
initially
secure
their
loans
for
collateral
in
the
amount
of
at
least
102%
of
the
value
of
U.S.
securities
loaned
or
at
least
105%
of
the
value
of
non-U.S.
securities
loaned,
marked-to-market
daily.
Any
collateral
shortfalls
associated
with
increases
in
the
valuation
of
the
securities
loaned
are
generally
cured
the
next
business
day.
The
collateral
can
be
received
in
the
form
of
cash
collateral
and/or
non-cash
collateral.
Non-cash
collateral
can
include
U.S.
Government
Securities
and
other
securities
as
permitted
by Securities
and
Exchange
Commission
(“SEC”)
guidelines.
The
cash
collateral
is
invested
in
short-term
instruments
or
cash
equivalents,
primarily
open-end
investment
companies,
as
noted
on
the
Fund’s
Schedule
of
Portfolio
Investments.
The
Fund
effectively
does
not
have
control
of
the
non-cash
collateral
and
therefore
it
is
not
disclosed
on
the
Fund’s
Schedule
of
Portfolio
Investments.
Collateral
requirements
are
determined
daily
based
on
the
value
of
the
Fund’s
securities
on
loan
as
of
the
end
of
the
prior
business
day.
During
the
time
portfolio
securities
are
on
loan,
the
borrower
will
pay
the
Fund
any
dividends
or
interest
paid
on
such
securities
plus
any
fee
negotiated
between
the
parties
to
the
lending
agreement.
The
Fund
also
earns
a
return
from
the
collateral.
The
Fund
pays
Citibank
various
fees
in
connection
with
the
investment
of
cash
collateral
and
fees
based
on
the
investment
income
received
from
securities
lending
activities.
Securities
lending
income
(net
of
these
fees)
is
disclosed
on
the
Statement
of
Operations.
Loans
are
terminable
upon
demand
and
the
borrower
must
return
the
loaned
securities
within
the
lesser
of
one
standard
settlement
period
or
five
business
days.
Although
risk
is
mitigated
by
the
collateral,
the
Fund
could
experience
a
delay
in
recovering
its
securities
and
possible
loss
of
income
or
value
if
the
borrower
fails
to
return
them.
In
addition,
there
is
a
risk
that
the
value
of
the
short-term
investments
will
be
less
than
the
amount
of
cash
collateral
required
to
be
returned
to
the
borrower.
The
Fund’s
agreement
with
Citibank
does
not
include
master
netting
provisions.
Non-cash
collateral
received
by
the
Fund
may
not
be
sold
or
repledged,
except
to
satisfy
borrower
default.
As
of
June
30,
2026,
the
Fund
did
not
have
any
securities
on
loan.
Derivative
Instruments:
Foreign
Exchange
Currency
Contracts:
The
Fund
may
enter
into
foreign
exchange
currency
contracts
to
convert
U.S.
dollars
to
and
from
various
foreign
currencies.
A
foreign
exchange
currency
contract
is
an
obligation
by the
Fund
to
purchase
or
sell
a
specific
currency
at
a
future
date
at
a
price
(in
U.S.
dollars)
set
at
the
time
of
the
contract.
The
Fund
does
not
engage
in
“cross-currency”
foreign
exchange
contracts
(i.e.,
contracts
to
purchase
or
sell
one
foreign
currency
in
exchange
for
another
foreign
currency).
The
Fund’s
foreign
exchange
currency
contracts
might
be
considered
spot
contracts
(typically
a
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
25
(Unaudited)
contract
of
one
week
or
less)
or
forward
contracts
(typically
a
contract
term
over
one
week).
A
spot
contract
is
entered
into
for
purposes
of
hedging
against
foreign
currency
fluctuations
relating
to
a
specific
portfolio
transaction,
such
as
the
delay
between
a
security
transaction
trade
date
and
settlement
date.
Forward
contracts
are
entered
into
for
purposes
of
hedging
portfolio
holdings
or
concentrations
of
such
holdings. Each
foreign
exchange
currency
contract
is
adjusted
daily
by
the
prevailing
spot
or
forward
rate
of
the
underlying
currency,
and
any
appreciation
or
depreciation
is
recorded
for
financial
statement
purposes
as
unrealized
until
the
contract
settlement
date,
at
which
time
the
Fund
records
realized
gains
or
losses
equal
to
the
difference
between
the
value
of
a
contract
at
the
time
it
was
opened
and
the
value
at
the
time
it
was
closed.
The Fund
could
be
exposed
to
risk
if
a
counterparty
is
unable
to
meet
the
terms
of
a
foreign
exchange
currency
contract
or
if
the
value
of
the
foreign
currency
changes
unfavorably.
In
addition,
the
use
of
foreign
exchange
currency
contracts
does
not
eliminate
fluctuations
in
the
underlying
prices
of
the
securities.
The
Fund
enters
into
foreign
exchange
currency
contracts
solely
for
spot
or
forward
hedging
purposes,
and
not
for
speculative
purposes
(i.e.,
the
Fund
does
not
enter
into
such
contracts
solely
for
the
purpose
of
earning
foreign
currency
gains). As
of June
30,
2026,
the
Fund
had
open
forward
foreign
exchange
currency
contracts.
Futures
Contracts:
The
Fund
may
enter
into
contracts
for
the
future
delivery
of
securities
or
foreign
currencies
and
futures
contracts
based
on
a
specific
security,
class
of
securities,
foreign
currency
or
an
index,
and
purchase
or
sell
options
on
any
such
futures
contracts.
A
futures
contract
on
a
securities
index
is
an
agreement
obligating
either
party
to
pay,
and
entitling
the
other
party
to
receive,
while
the
contract
is
outstanding,
cash
payments
based
on
the
level
of
a
specified
securities
index.
No
physical
delivery
of
the
underlying
asset
is
made.
The
Fund
may
enter
into
futures
contracts
in
an
effort
to
hedge
against
market
risks.
The
acquisition
of
put
and
call
options
on
futures
contracts
will
give
the
Fund
the
right
(but
not
the
obligation),
for
a
specified
price,
to
sell
or
to
purchase
the
underlying
futures
contract,
upon
exercise
of
the
option,
at
any
time
during
the
option
period.
Futures
transactions
involve
brokerage
costs
and a
good
faith
margin
deposit,
known
as
initial
margin,
of
cash
or
government
securities
with
a
broker
or
custodian
is
required
to
initiate
and
maintain
open
positions
in
futures
contracts.
Subsequent
payments,
known
as
variation
margin,
are
made
or
received
by
the
Fund
based
on
the
change
in
the
market
value
of
the
position
and
are
recorded
as
unrealized
appreciation
or
depreciation
until
the
contract
is
closed
out,
at
which
time
the
gain
or
loss
is
realized.
The
Fund
may
lose
the
expected
benefit
of
futures
transactions
if
interest
rates,
exchange
rates
or
securities
prices
change
in
an
unanticipated
manner.
Such
unanticipated
changes
may
also
result
in
lower
overall
performance
than
if
the
Fund
had
not
entered
into
any
futures
transactions.
In
addition,
the
value
of
the
Fund’s
futures
positions
may
not
prove
to
be
perfectly
or
even
highly
correlated
with
the
value
of
its
portfolio
securities
or
foreign
currencies,
limiting
the
Fund’s
ability
to
hedge
effectively
against
interest
rate,
exchange
rate
and/or
market
risk
and
giving
rise
to
additional
risks.
There
is
no
assurance
of
liquidity
in
the
secondary
market
for
purposes
of
closing
out
futures
positions.
The
collateral
held
by
the
Fund
is
reflected
on
the
Statement
of
Assets
and
Liabilities
under
Futures
contracts
collateral.
Options
Contracts:
Options
contracts
are
generally
valued
at
the
mean
between
the
last
bid
and
ask
prices
on
the
principal
exchange
where
they
are
traded.
Over
the-
counter
(“OTC”)
options
and
options
on
swaps
(“swaptions”)
are
valued
using
prices
supplied
by
independent
pricing
services,
which
consider
such
factors
as
market
prices,
market
events,
quotations
from
one
or
more
brokers,
Treasury
spreads,
yields,
maturities
and
ratings,
or
may
use
a
pricing
matrix
or
other
fair
value
methods
or
techniques
to
provide
an
estimated
value
of
the
security
or
instrument.
Credit
Derivatives:
The Fund
may
enter
into
credit
derivatives,
including
centrally
cleared
credit
default
swaps
on
individual
obligations
or
credit
indices.
The
Fund
may
use
these
investments
(i)
as
alternatives
to
direct
long
or
short
investment
in
a
particular
security
or
securities,
(ii)
to
adjust
the
Fund’s
asset
allocation
or
risk
exposure,
or
(iii)
for
hedging
purposes.
The
use
by
the
Fund
of
centrally
cleared
credit
default
swaps
may
have
the
effect
of
creating
a
short
position
in
a
security.
Credit
derivatives
can
create
investment
leverage
and
may
create
additional
investment
risks
that
may
subject
the
Fund
to
greater
volatility
than
investments
in
more
traditional
securities,
as
described
in
the
Fund’s
Statement
of
Additional
Information.
Centrally
cleared
credit
default
swap
(“CDS”)
agreements
on
credit
indices
involve
one
party
making
a
stream
of
payments
(referred
to
as
the
buyer
of
protection)
to
another
party
(the
seller
of
protection)
in
exchange
for
the
right
to
receive
a
specified
return
in
the
event
of
a
write-down,
principal
shortfall,
interest
shortfall
or
default
of
all
or
part
of
the
referenced
entities
comprising
the
credit
index.
A
credit
index
is
a
basket
of
credit
instruments
or
exposures
designed
to
be
representative
of
a
specific
sector
of
the
credit
market
as
a
whole.
These
indices
are
made
up
of
reference
credits
that
are
judged
by
a
poll
of
dealers
to
be
the
most
liquid
entities
in
the
CDS.
The
counterparty
risk
for
cleared
swap
agreements
is
generally
lower
than
uncleared
over-the-counter
swap
agreements
because
generally
a
clearing
organization
becomes
substituted
for
each
counterparty
to
a
centrally
cleared
swap
agreement
and,
in
effect,
guarantees
each
party’s
performance
under
the
contract
as
each
party
to
a
trade
looks
only
to
the
clearing
organization
for
performance
of
financial
obligations.
However,
there
can
be
no
assurance
that
the
clearing
organization,
or
its
members,
will
satisfy
its
obligations
to
the
Fund.
The
Fund
may
enter
into
CDS
agreements
either
as
a
buyer
or
seller.
The
Fund
may
buy
protection
under
a
CDS
to
attempt
to
mitigate
the
risk
of
default
or
credit
quality
deterioration
in
one
or
more
individual
holdings
or
in
a
segment
of
the
fixed
income
securities
market.
The
Fund
may
sell
protection
under
a
CDS
in
an
attempt
to
gain
exposure
to
an
underlying
issuer’s
credit
quality
characteristics
without
investing
directly
in
that
issuer.
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
26
(Unaudited)
For
swaps
entered
with
an
individual
counterparty,
the
Fund
bears
the
risk
of
loss
of
the
uncollateralized
amount
expected
to
be
received
under
a
CDS
agreement
in
the
event
of
the
default
or
bankruptcy
of
the
counterparty.
CDS
agreements
are
generally
valued
at
a
price
at
which
the
counterparty
to
such
agreement
would
terminate
the
agreement.
The
Fund
may
also
enter
into
centrally
cleared
swaps.
Upon
entering
into
a
cleared
CDS,
the
Fund
may
be
required
to
deposit
with
the
broker
an
amount
of
cash
or
cash
equivalents
in
the
range
of
approximately
3%
to
6%
of
the
notional
amount
for
CDS
on
high
yield
debt
issuers
(this
amount
is
subject
to
change
by
the
clearing
organization
that
clears
the
trade).
This
amount,
known
as
“initial
margin,”
is
in
the
nature
of
a
performance
bond
or
good
faith
deposit
on
the
CDS
and
is
returned
to
a
Fund
upon
termination
of
the
CDS,
assuming
all
contractual
obligations
have
been
satisfied.
Subsequent
payments,
known
as
“variation
margin,”
to
and
from
the
broker
will
be
made
daily
as
the
price
of
the
CDS
fluctuates,
making
the
long
and
short
positions
in
the
CDS
contract
more
or
less
valuable,
a
process
known
as
"marking-to-market."
The
premium
(discount)
payments
are
built
into
the
daily
price
of
the
CDS
and
thus
are
amortized
through
the
variation
margin.
The
variation
margin
payment
also
includes
the
daily
portion
of
the
periodic
payment
stream.
The
maximum
potential
amount
of
future
payments
(undiscounted)
that
the
Fund
as
a
seller
of
protection
could
be
required
to
make
under
a
CDS
agreement
equals
the
notional
amount
of
the
agreement.
Notional
amounts
of
each
individual
CDS
agreement
outstanding
as
of
period end
for
which
the
Fund
is
the
seller
of
protection
are
disclosed
on
the
Schedule
of
Portfolio
Investments.
These
potential
amounts
would
be
partially
offset
by
any
recovery
values
of
the
respective
referenced
obligations,
upfront
payments
received
upon
entering
into
the
agreement,
periodic
interest
payments,
or
net
amounts
received
from
the
settlement
of
buy
protection
CDS
agreements
entered
into
by
the
Fund
for
the
same
referenced
entity
or
entities.
The
collateral
held
by
the
Fund
is
reflected
on
the
Statements
of
Assets
and
Liabilities
under
Deposit
with
broker
for
swap
agreements.
Management
has
determined
that
no
offsetting
requirements
exist
as
a
result
of
their
conclusion
that
the
Fund is
not
subject
to
master
netting
agreements
for
swaps
contracts.
The Fund
entered
into
centrally
cleared
CDS
agreements
primarily
for
the
strategy
of
asset
allocation
and
risk
exposure
management
during
the
period.
Summary
of
Derivative
Instruments:
The
following
table
summarizes
the
fair
values
of
derivative
instruments
on
the
Statement
of
Assets
and
Liabilities,
categorized
by
risk
exposure,
as
of
June
30,
2026 (amounts
in
thousands):
*Includes
cumulative
appreciation
(depreciation)
of
swap
agreements
as
reported
on
the
Schedule
of
Portfolio
Investments.
Only
current
day’s
variation
margin
for
swap
agreements
is
reported
within
the
Statement
of
Assets
and
Liabilities.
The
following
table
presents the
effect
of
derivative
instruments
on
the
Statement
of
Operations,
categorized
by
risk
exposure,
for
the six
months
ended
June
30,
2026 (amounts
in
thousands):
Assets
Liabilities
Futures
contracts*
Swap
Agreements*
Forward
Currency
Contracts
Futures
contracts*
Swap
agreements*
Forward
Currency
Contracts
Credit
Risk
Exposure:
–
14,000
–
–
1,000
–
Strategic
Income
VCT
Portfolio
....
$
–
$
14
$
–
$
–
$
(1)
$
–
Interest
Rate
Risk
Exposure:
29,000
–
–
(9,000)
–
–
Strategic
Income
VCT
Portfolio
....
29
–
–
9
–
–
Foreign
Exchange
Rate
Risk
Exposure:
31,000
(46,000)
Strategic
Income
VCT
Portfolio
....
–
–
31
–
–
46
Net
realized
gains
(losses)
from
futures
contracts
Net
Realized
Gains
(Losses)
from
Swap
Agreements
Net
Realized
Gains
(Losses)
from
Forward
Currency
Exchange
Contracts
Net
change
in
unrealized
appreciation/
depreciation
on
futures
contracts
Net
Change
in
Unrealized
Appreciation/
Depreciation
on
Swap
Agreements
Net
Change
in
Unrealized
Appreciation/
Depreciation
from
Forward
Currency
Exchange
Contracts
Credit
Risk
Exposure:
–
(9,000)
–
–
5,000
–
Strategic
Income
VCT
Portfolio
...
$
–
$
(9
)
$
–
$
–
$
5
$
–
Interest
Rate
Risk
Exposure:
(92,000)
–
–
63,000
–
–
Strategic
Income
VCT
Portfolio
...
$
(92)
$
–
$
–
$
63
$
–
$
–
Forward
Exchange
Rate
Risk
Exposure:
–
–
46,000
–
–
(15,000)
Strategic
Income
VCT
Portfolio
...
–
–
46
–
–
(15
)
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
27
(Unaudited)
All
open
derivative
positions
at
period end
are
reflected
on
the
Fund’s
Schedule
of
Portfolio
Investments.
The
underlying
face
value
of
open
derivative
positions
relative
to the
Fund’s
net
assets
at period
end
is
representative
of
the
notional
amount
of
open
positions
to
net
assets
throughout
the
period.
Average
Quarterly
Balances
of
Outstanding
Derivative
Financial
Instruments:
The
following
table
summarizes
the
volume
of
derivative
instruments
activity for
the
six
months
ended June
30,
2026,
categorized
by
derivative
instrument type
(amounts
in
thousands):
Investment
Transactions
and
Related
Income:
Investment
transactions
are
recorded
on
trade
date.
For
financial
reporting
purposes,
however,
investment
transactions
are
accounted
for
on
trade
date
or
the
last
business
day
of
the
reporting
period.
 Dividend
income
is
recorded
on
the
ex-dividend
date.
Non-cash
dividends
included
in
income,
if
any,
are
recorded
at
the
fair
value
of
the
securities
received.
Gains
or
losses
realized
on
sales
of
securities
are
recorded
on
the
identified
cost
basis. Interest
income
is
accrued
daily
and
recorded
using
the
effective
interest
method,
which
includes
the
amortization
of
premiums
and
accretion
of
discounts
on
debt
securities.
The Fund
may
receive
other
income
from
investments
in
loan
assignments
and/or
unfunded
commitments,
including
amendment
fees,
consent
fees,
and
commitment
fees.
These
fees
are
recorded
as
income
when
received.
These
amounts,
if
received,
are
included
in
Interest
income
on
the
Statement
of
Operations. 
Withholding
taxes
on
foreign
dividends,
interest,
and
capital
gains
have
been
provided
for
in
accordance
with
the
applicable
tax
rules
and
rates
of
each
respective
country.
Foreign
Currency
Translations:
The
accounting
records
of
the
Fund
are
maintained
in
U.S.
dollars.
Investment
securities
and
other
assets
and
liabilities
of the
Fund
denominated
in
a
foreign
currency
are
translated
into
U.S.
dollars
at
current
exchange
rates.
Purchases
and
sales
of
securities,
income
receipts,
and
expense
payments
are
translated
into
U.S.
dollars
at
the
exchange
rates
on
the
date
of
the
transactions.
The
Fund
does
not
isolate
the
portion
of
the
results
of
operations
resulting
from
changes
in
foreign
exchange
rates
on
investments
from
fluctuations
arising
from
changes
in
market
prices
of
securities
held.
Such
fluctuations,
if
any,
are
disclosed
as
Net
change
in
unrealized
appreciation/depreciation
on investment
securities
and
foreign
currency
translations
on
the
Statement
of
Operations.
Realized
gains
or
losses
from
these
fluctuations,
if
any,
are
disclosed
as
Net
realized
gains
(losses)
from
investment
securities
and
foreign
currency
transactions
on
the
Statement
of
Operations.
Federal
Income
Taxes:
The
Fund
intends
to
continue
to
qualify
as
a
regulated
investment
company
by
complying
with
the
provisions
available
to
certain
investment
companies,
as
defined
in
applicable
sections
of
the
Internal
Revenue
Code,
and
to
make
distributions
of
net
investment
income
and
net
realized
gains
sufficient
to
relieve
it
from
all,
or
substantially
all,
federal
income
taxes.
Accordingly,
no
provision
for
federal
income
taxes
is
required
in
the
financial
statements.
The
Fund
has
a
tax
year
end
of December
31.
For
the
six
months
ended
June
30,
2026,
the
Fund
did
not
incur
any
income
tax,
interest,
or
penalties,
and
has
recorded
no
liability
for
net
unrecognized
tax
benefits
relating
to
uncertain
tax
positions.
Management
of
the
Fund
has
reviewed
tax
positions
taken
in
tax
years
that
remain
subject
to
examination
by
all
major
tax
jurisdictions,
including
federal
(i.e.,
the
last
four
tax
years,
which
includes
the
current
fiscal
tax
year
end).
Management
believes
that
there
is
no
tax
liability
resulting
from
unrecognized
tax
benefits
related
to
uncertain
tax
positions
taken.
Strategic
Income
VCT
Portfolio
Forward
foreign
currency
exchange
contracts:
Average
amounts
purchased
..............................................................................
$
2,143
Average
amounts
sold
..................................................................................
$
1,714
Futures
contracts:
Average
notional
value
of
contracts
—
long
..................................................................
$
6,311
Average
notional
value
of
contracts
—
short
..................................................................
$
(1,219)
Centrally
cleared
credit
default
swaps:
Average
notional
value
—
buy
protection
....................................................................
$
307
Average
notional
value
—
sell
protection
$
449
a
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
28
(Unaudited)
Allocations:
Expenses
directly
attributable
to the
Fund
are
charged
to the
Fund,
while
expenses
that
are
attributable
to
more
than
one
fund
in
the
Trust,
or
jointly
with
an
affiliated
trust,
are
allocated
among
the
respective
funds
in
the
Trust
and/or
an
affiliated
trust
based
upon
net
assets
or
another
appropriate
basis.
Income,
expenses
(other
than
class-specific
expenses
such
as
transfer
agent
fees,
state
registration
fees,
printing
fees,
and
12b-1
fees),
and
realized
and
unrealized
gains
or
losses
on
investments
are
allocated
to
each
class
of
shares
based
on
its
relative
net
assets
on
the
date
income
is
earned
or
expenses
and
realized
and
unrealized
gains
and
losses
are
incurred.
Fees
Paid
Indirectly:
Expense
offsets
to
custody
fees
that
arise
from
credits
on
cash
balances
maintained
on
deposit
are
reflected
on
the
Statement
of
Operations,
as
applicable,
as
Fees
paid
indirectly.
3.
Purchases
and
Sales:
Purchases
and sales
of
securities
(excluding
securities
maturing
less
than
one
year
from
acquisition)
for
the
six
months
ended
June
30,
2026,
were
as
follows
(amounts
in
thousands):
4.
Fees
and
Transactions
with
Affiliates
and
Related
Parties:
Investment
Advisory
Fees: 
Investment
advisory
services
are
provided
to
the
Fund
by
the
Adviser,
which
is
a
New
York
corporation
registered
as
an
investment
adviser
with
the
SEC.
Under
the
terms
of
the
Investment
Advisory
Agreement,
the
Adviser
is
entitled
to
receive
fees
accrued
daily
and
paid
monthly
at
an
annualized
rate
of
0.65%
of
the
Fund’s
average
daily
net
assets.
Amounts
incurred
and
paid
to
VCM
for
the six
months
ended
June
30,
2026,
are
reflected
on
the
Statement
of
Operations
as
Investment
advisory
fees.
Amounts
incurred
and
paid
to
VCM
for
the
six
months ended
June
30,
2026,
are
reflected
on
the
Statements
of
Operations
as
Investment
advisory
fees.
Administration
and
Servicing
Fees:
VCM
also
serves
as
the
Fund’s
administrator
and
fund
accountant.
Under
the Administration
and
Fund
Accounting
Agreement,
VCM
is
paid
an
administration
fee
based
on
a
percentage
of
the
average
daily
net
assets
of
all
Companies
and
Funds
(as
defined
in
the
Administration
and
Fund
Accounting
Agreement)
together
with
all
other
registered
investment
companies
for
which
VCM
acts
as
administrator,
and
allocating
to the
Fund
on
a
pro
rata
basis
calculated
based
on
the
Fund’s
average
daily
net
assets.
The
tiered
rates
at
which
VCM
is
paid
by
the
Fund
are
shown
in
the
table
below:
Amounts
incurred
for
the
six
months
ended
June
30,
2026,
are
reflected
on
the
Statement
of
Operations
as
Administration
fees.
Effective
February
9,
2026,
Citi
Fund
Services
Ohio,
Inc.
(“Citi”),
an
affiliate
of
Citibank,
acts
as
sub-administrator
and
sub-fund
accountant
to
the
Fund
pursuant
to
a
Sub-Administration
and
Sub-Fund
Accounting
Services
Agreement
between
VCM
and
Citi.
VCM
pays
Citi
a
fee
for
providing
these
services.
The
Fund
reimburses
VCM
and
Citi
for
out-of-pocket
expenses
incurred
in
providing
these
services,
including
costs
associated
with
the
Chief
Compliance
Officer,
and
implementing
new
reports
required
by
new
rules
adopted
by
the
SEC
under
the
1940
Act.
Prior
to
February
9,
2026,
BNY
Mellon
served
as
sub-administrator
and
sub-fund
accountant
for
the
Fund.
The
total
amounts
incurred
and
paid
for
through
the six
months
ended June
30,
2026
are
reflected
within
the
Sub-Administration
fees
on
the
Statement
of
Operations.
Transfer
Agency
Fees:
Effective February
9,
2026,
FIS
Investor
Services
LLC
serves
as
the
Fund’s
transfer
agent.
Under
the
Transfer
Agent
Agreement,
the
Trust
pays
FIS
a
fee
for
its
services
and
reimburses
FIS
for
all
of its
reasonable
out-of-pocket
expenses
incurred
in
providing
these
services.
Prior
to February
9,
2026,
BNY
Mellon
Investment
Servicing
(US)
Inc.
served
as
the
transfer
agent
to
the
Fund at
negotiated
rates
where
transfer
agent
fees
included
sub-transfer
agent
expenses
incurred
through
the
Fund’s
omnibus
relationship
contracts.
In
addition,
the
Fund
would
reimburse
out-of-pocket
expenses
incurred
by
the
former
transfer
agent
related
to
shareholder
communications
activities
such
as
proxy
and
Excluding
U.S.
Government
Securities
U.S.
Government
Securities
Purchases
Sales
Purchases
Sales
Strategic
Income
VCT
Portfolio
.....................................
$
3,697
$
4,408
$
23,994
$
21,923
Annual
Charge
Up
to
$15
billion
Over
$15
billion
-
30
billion
Over
$30
billion
-
$85
billion
Over
$85
billion
Strategic
Income
VCT
Portfolio
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
0.08%,
Plus
0.05%,
plus
0.04%,
plus
0.03%
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
29
(Unaudited)
statement
mailings,
and
outgoing
phone
calls.
Total
transfer
agent
fees
incurred
for
the
six
months ended
June
30,
2026,
are
reflected
on
the
Statement
of
Operations
as
Transfer
agent
fees.
Sub-Transfer
Agency
Fees:
Effective
February
9,
2026,
the
Fund
has
entered
into
Sub-Transfer
Agency
Agreements
with
financial
intermediaries
that
provide
recordkeeping,
processing,
shareholder
communications
and
other
services
to
customers
of
the
intermediaries
that
hold
positions
in
the
Fund
and
have
agreed
to
compensate
the
intermediaries
for
providing
those
services.
Intermediaries
transact
with
the
Fund
primarily
through
the
use
of
omnibus
accounts
on
behalf
of
their
customers
who
hold
positions
in
the
Fund.
These
services
would
have
been
provided
by
the
Fund’s
transfer
agent
and
other
service
providers
if
the
shareholders'
accounts
were
maintained
directly
at
the
Fund's
transfer
agent.
Prior
to
February
9,
2026,
BNY
Mellon
served
as
sub-transfer
agent.
Total
sub-transfer
agent
fees
incurred
for
the six
months
ended
June
30,
2026,
are
reflected
on
the
Statement
of
Operations
as
Sub-Transfer
agent
fees.
Distributor/Underwriting
Services:
Victory
Capital
Services,
Inc.
(the
“Distributor”),
an
affiliate
of
the
Adviser,
serves
as
Distributor
for
the
continuous
offering
of
the
shares
of
the
Fund
pursuant
to
a
Distribution
Agreement
between
the
Distributor
and
the
Trust.
Pursuant
to
the
Distribution
and
Service
Plans
adopted
in
accordance
with
Rule
12b-1
under
the
1940
Act,
the
Distributor
may
receive
a
monthly
distribution
and
service
fee
for
Class
II
at
an
annual
rate
of
up
to
0.25%
of
the
average
daily
net
assets.
Amounts
incurred
and
paid
to
the
Distributor
for
the
six
months
ended
June
30,
2026, are
reflected
on
the
Statement
of
Operations
as
12b-1
fees.
Other
Fees:
Effective
February
9,
2026,
Citibank
serves
as
the
Fund's
custodian.
The
Fund
pays
Citibank
a
fee
for
providing
these
services.
Prior
to
February
9,
2026,
BNY
Mellon
served
as
the
Fund's
custodian. Total
custodian
fees
incurred
for
the
period ended
June
30,
2026, are
reflected
on
the
Statement
of
Operations
as
Custodian
fees.
Sidley
Austin
LLP
provides
legal
services
to
the
Trust.
The
Adviser
has
entered
into
an
expense
limitation
agreement
with the Fund.
Under
the
terms
of
the
agreement,
the
Adviser
has
agreed
to
waive
fees
or
reimburse
certain
expenses
to
the
extent
that
ordinary
operating
expenses
incurred
by
certain
classes
of
the
Fund
in
any
fiscal
year
exceed
the
expense limits
for
such
classes
of the
Fund.
Such
excess
amounts
will
be
the
liability
of
the
Adviser. Acquired
fund
fees
and
expenses,
interest,
taxes,
brokerage
commissions,
other
expenditures which
are
capitalized
in
accordance
with
GAAP,
and
other
extraordinary
expenses
not
incurred
in
the
ordinary
course
of the
Fund’s
business
are
excluded
from
the
expense
limits.
As
of
June
30,
2026,
the
expense
limits
(excluding
voluntary
waivers) were
as
follows:
Under
the
terms
of
the
expense
limitation
agreement,
the
Fund
has
agreed
to
repay
fees
and
expenses
that
were
waived
or
reimbursed
by
the
Adviser
for
a
period
of
up
to two
years
(twenty-four
(24)
months)
after
the
waiver
or
reimbursement
took
place,
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
Fund
has
not
recorded
any
amounts
available
to
be
repaid
to
the
Adviser
as
a
commitment
and
contingency
liability
due
to
an
assessment
that
such
repayments
are
not
probable
at
June
30,
2026.
The
dates
in
the
table
below
represent
the
fiscal
year-end
in
which
the
24-month
recoupment
period
expires.
As
of
June
30,
2026,
these
amounts
are
available
to
be
repaid
to
the
Adviser
(amounts
in
thousands):
The
Adviser
may
voluntarily
waive
or
reimburse
additional
fees
and
expenses
or
make
other
payments to
assist
the
Fund
in
maintaining
competitive
expense
ratios.
Except
as
noted
above,
voluntary
waivers
and
reimbursements
applicable
to
the
Fund
are
not
available
to
be
recouped
at
a
future
time.
There
were
no
voluntary
waivers
or
reimbursements
for
the six
months
ended
June
30,
2026.
Certain
officers
and/or
interested
trustees
of
the
Fund
are
also
officers
and/or
employees
of
the
Adviser,
administrator,
fund
accountant,
legal
counsel,
and
Distributor.
In
effect
until
April
1,
2028
Class
I
Class
II
Strategic
Income
VCT
Portfolio
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
0.75%
1.00%
December
31,
2027
December
31,
2028
Total
Strategic
Income
VCT
Portfolio
......................................................
$
34
$
23
$
57
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
30
(Unaudited)
5.
Risks:
The
following
describes
principal
risks
that
you
may
assume
as
an
investor
in
the
Fund.
The
Fund’s
prospectus
contains
unaudited
information
regarding
the
Fund’s
principal
risks.
Please
refer
to
that
document
when
considering
the
Fund’s
principal
risks.
The
Fund
may
be
subject
to
other
risks
in
addition
to
these
identified
risks.
Market
Risk
—
The
market
prices
of
securities
or
other
assets
held
by
the
Fund
may
go
up
or
down,
sometimes
rapidly
or
unpredictably,
due
to
general
market
conditions,
such
as
real
or
perceived
adverse
economic,
political,
or
regulatory
conditions,
political
instability,
recessions,
inflation,
changes
in
interest
or
currency
rates,
lack
of
liquidity
in
the
bond
markets,
the
spread
of
infectious
illness
or
other
public
health
issues,
weather
or
climate
events,
armed
conflict,
market
disruptions
caused
by
tariffs,
trade
disputes,
sanctions
or
other
government
actions,
or
other
factors
or
adverse
investor
sentiment.
If
the
market
prices
of
the
Fund’s
securities
and
assets
fall,
the
value
of
your
investment
will
go
down.
A
change
in
financial
condition
or
other
event
affecting
a
single
issuer
or
market
may
adversely
impact
securities
markets
as
a
whole.
High-Yield/Junk
Bond
Risk
—
Debt
securities
that
are
below
investment
grade,
called
“junk
bonds,”
are
speculative,
have
a
higher
risk
of
default
or
are
already
in
default,
tend
to
be
less
liquid
and
are
more
difficult
to
value
than
higher
grade
securities.
Junk
bonds
tend
to
be
volatile
and
more
susceptible
to
adverse
events
and
negative
sentiments,
and
may
become
illiquid.
These
risks
are
more
pronounced
for
securities
that
are
already
in
default.
Interest
Rate
Risk
 —
The
market
prices
of
the
Fund’s
fixed
income
securities
may
fluctuate
significantly
when
interest
rates
change.
The
value
of
your
investment
will
generally
go
down
when
interest
rates
rise.
A
rise
in
rates
tends
to
have
a
greater
impact
on
the
prices
of
longer
term
or
duration
securities.
Duration
is
a
measure
of
a
fixed
income
security’s
sensitivity
to
changes
in
interest
rates.
For
example,
if
interest
rates
increase
by
1%,
the
value
of
a
fund’s
portfolio
with
a
portfolio
duration
of
ten
years
would
be
expected
to
decrease
by
10%,
all
other
things
being
equal.
A
general
rise
in
interest
rates
could
adversely
affect
the
price
and
liquidity
of
fixed
income
securities
and
could
also
result
in
increased
redemptions
from
the
Fund.
The
maturity
of
a
security
may
be
significantly
longer
than
its
effective
duration.
A
security’s
maturity
and
other
features
may
be
more
relevant
than
its
effective
duration
in
determining
the
security’s
sensitivity
to
other
factors
affecting
the
issuer
or
markets
generally,
such
as
changes
in
credit
quality
or
in
the
yield
premium
that
the
market
may
establish
for
certain
types
of
securities
(sometimes
called
“credit
spread”).
In
general,
the
longer
its
maturity
the
more
a
security
may
be
susceptible
to
these
factors.
When
the
credit
spread
for
a
fixed
income
security
goes
up
or
“widens,”
the
value
of
the
security
generally
will
go
down.
Credit risk
—
Credit
risk
relates
to
the
ability
of
the
issuer
of
a
financial
instrument
to
make
further
principal
or
interest
payments
on
an
obligation
or
commitment
that
it
has
to
the
Fund.
6.
Interfund
Lending:
The
Trust
and
the
Adviser
rely
on
an
exemptive
order
granted
by
the
SEC
in
March
2017
(the
“Order”),
permitting
the
establishment
and
operation
of
an
Interfund
Lending
Facility
(the
“Facility”).
The
Facility
allows
the
Fund
to
directly
lend
and
borrow
money
to
or
from
any
other
fund
in
the
Victory
Funds
Complex
that
is
permitted
to
participate
in
the
Facility,
relying
upon
the
Order
at
rates
beneficial
to
both
the
borrowing
and
lending
funds.
Advances
under
the
Facility
are
allowed
for
temporary
or
emergency
purposes,
including
the
meeting
of
redemption
requests
that
otherwise
might
require
the
untimely
disposition
of
securities,
and
are
subject
to
each
Fund’s
borrowing
restrictions.
The
interfund
loan
rate
is
determined,
as
specified
in
the
Order,
by
averaging
the
current
repurchase
agreement
rate
and
the
current
bank
loan
rate.
As
a
Borrower
(as
defined
in
the
Order),
interest
charged
to
the
Fund,
if
any,
during
the
period,
is
reflected
on
the
Statement
of
Operations
under
Interfund
lending
fees.
As
a
Lender
(as
defined
in
the
Order),
interest
earned
by
the
Fund,
if
any,
during
the
period,
is
reflected
on
the
Statement
of
Operations
under
Interfund
lending.
The
Fund
did
not
utilize
or
participate
in
the
Facility
during
the
six
months
ended
June
30,
2026.
7.
Federal
Income
Tax
Information:
Distributions
from
the
Fund's
net
investment
income
are
accrued
daily
and
distributed
on
the
last
business
day
of
each
month.
Distributable
net
realized
gains,
if
any,
are
declared
and
paid
at
least
annually.
The
amounts
of
dividends
from
net
investment
income
and
distributions
from
net
realized
gains
(collectively,
distributions
to
shareholders)
are
determined
in
accordance
with
federal
income
tax
regulations,
which
may
differ
from
GAAP.
To
the
extent
these
“book/tax”
differences
are
permanent
in
nature
(e.g.,
net
operating
loss
and
distribution
reclassification,
utilized
earnings
and
profit
distributions
to
shareholders
on
redemption
of
shares
as
part
of
the
dividends
paid
deduction
for
income
tax
purposes),
such
amounts
are
reclassified
within
the
components
of
net
assets
based
on
their
federal
tax-basis
treatment;
temporary
differences
(e.g.,
wash
sales)
do
not
require
reclassification.
To
the
extent
dividends
and
distributions
exceed
net
investment
income
and
net
realized
gains
for
tax
purposes,
they
are
reported
as
distributions
of
capital.
Net
investment
losses
incurred
by
the
Fund
may
be
reclassified
as
an
offset
to
capital
on
the
accompanying
Statement
of
Assets
and
Liabilities.
The
tax
character
of
current
year
distributions
paid
and
the
tax
basis
of
the
current
components
of
accumulated
earnings
(losses)
will
be
determined
at
the
end
of
the
current
tax
year.
As
of
the
tax
year
ended December
31,
2025,
the
Fund
had
net
capital
loss
carryforwards as shown
in
the
table
below.
It
is
unlikely
that
the
Board
will
authorize
a
distribution
of
capital
gains
realized
in
the
future
until
the
capital
loss
carryforwards
have
been
used
(amounts
in
thousands):
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
31
(Unaudited)
8.
Affiliated
Securities:
An
affiliated
security
is
a
security
in
which
the
Fund
has
ownership
of
at
least
5%
of
the issuer's
outstanding
voting
shares,
an
investment
company
managed
by
VCM,
or
an
issuer
under
common
control
with the
Fund
or
VCM.
The
Fund
does
not
invest
in
affiliated
securities
for
the
purpose
of
exercising
management
or
control.
These
securities
are
noted
as
affiliated
on
the
Fund’s
Schedule
of
Portfolio
Investments.
The
financial
statements
of
the
underlying
funds
can
be
found
in
shareholder
reports
filed
with
the
SEC
by
each
such
underlying
fund
semi-annually
on
Form
N-CSR
and
are
available
for
download
from
both
the
SEC’s
as
well
as
each
respective
underlying
fund’s
website.
Transactions
in
affiliated
securities
during
the six
months
ended
June
30,
2026,
were
as
follows
(amounts
in
thousands,
except
shares):
9.
Master
Netting
Agreements:
The
Fund
has
entered
into
an
International
Swaps
and
Derivatives
Association,
Inc.
Master
Agreement
(“ISDA
Master
Agreement”)
or
similar
agreement
with
substantially
all
of
its
derivative
counterparties.
An
ISDA
Master
Agreement
is
a
bilateral
agreement
between
the
Fund
and
a
counterparty
that
governs
the
trading
of
certain
Over
the
Counter
(“OTC”)
derivatives
and
typically
contains,
among
other
things,
close-out
and
setoff
provisions
which
apply
upon
the
occurrence
of
an
event
of
default
and/or
a
termination
event
as
defined
under
the
relevant
ISDA
Master
Agreement.
The
ISDA
Master
Agreement
may
also
give
a
party
the
right
to
terminate
all
transactions
traded
under
such
agreement
if,
among
other
things,
there
is
deterioration
in
the
credit
quality
of
the
other
party.
Upon
an
event
of
default
or
a
termination
of
the
ISDA
Master
Agreement,
the
non-defaulting
party
has
the
right
to
close-out
all
transactions
under
such
agreement
and
to
net
amounts
owed
under
each
transaction
to
determine
one
net
amount
payable
by
one
party
to
the
other.
The
right
to
close
out
and
net
payments
across
all
transactions
under
the
ISDA
Master
Agreement
could
result
in
a
reduction
of
the
Fund’s
credit
risk
to
its
counterparty
equal
to
any
amounts
payable
by
the
Fund
under
the
applicable
transactions,
if
any.
However,
the
Fund’s
right
to
set-off
may
be
restricted
or
prohibited
by
the
bankruptcy
or
insolvency
laws
of
the
particular
jurisdiction
to
which
each
specific
ISDA
Master
Agreement
of
each
counterparty
is
subject.
The
collateral
requirements
for
derivatives
transactions
under
an
ISDA
Master
Agreement
are
governed
by
a
credit
support
annex
to
the
ISDA
Master
Agreement.
Collateral
requirements
are
generally
determined
at
the
close
of
business
each
day
and
are
typically
based
on
changes
in
market
values
for
each
transaction
under
an
ISDA
Master
Agreement
and
netted
into
one
amount
for
such
agreement.
Generally,
the
amount
of
collateral
due
from
or
to
a
counterparty
is
subject
to
threshold
(a
“minimum
transfer
amount”)
before
a
transfer
is
required,
which
may
vary
by
counterparty.
Collateral
pledged
for
the
benefit
of
the
Fund
and/or
counterparty
is
held
in
segregated
accounts
by
the
Fund’s
custodian
and
cannot
be
sold,
repledged,
assigned
or
otherwise
used
while
pledged.
Cash
that
has
been
segregated
to
cover
the
Fund’s
collateral
obligations,
if
any,
will
be
reported
separately
on
the
Statement
of
Assets
and
Liabilities
as
“Swaps
collateral”.
Securities
pledged
by
the
Fund
as
collateral,
if
any,
are
identified
as
such
in
the
Schedule
of
Investments.
Financial
instruments
subject
to
an
enforceable
master
netting
agreement,
such
as
an
ISDA
Master
Agreement,
have
been
offset
on
the
Statement
of
Assets
and
Liabilities.
The
following
chart
shows
gross
assets
of
the
Fund
as
of
June
30,
2026 (amounts
in
thousands):
as
(a)
The
amount
presented
here
may
be
less
than
the
total
amount
of
collateral
received/pledged
as
the
net
amount
of
derivative
assets
and
liabilities
cannot
be
less
than
$0.
(b)
Represents
the
net
amount
due
from
the
counterparty
in
the
event
of
default.
Short-Term
Amount
Long-Term
Amount
Total
Strategic
Income
VCT
Portfolio
...........................................
$
(466)
$
(2,414)
$
(2,880)
Fair
Value
12/31/2025
Purchases
at
Cost
Proceeds
from
Sales
Net
Realized
Gains
(Losses)
Net
Change
in
Unrealized
Appreciation/
Depreciation
Fair
Value
6/30/2026
Shares
Dividend
Income
Capital
Gain
Distributions
Strategic
Income
VCT
Portfolio
Victory
Pioneer
ILS
Interval
Fund
................
$
1,382
$
—
$
—
$
—
$
123
$
1,505
143,074
$
—
$
—
a
a
a
a
a
Counterparty
Derivative
Liabilities
Subject
to
Master
Netting
Agreement
Derivatives
Available
for
Offset
Non-Cash
Collateral
Pledged
(a)
Cash
Collateral
Pledged
(a)
Net
Amount
of
Derivative
Liabilities
(b)
Citibank
NA
$
23
$
—
$
—
$
—
$
23
State
Street
6
—
—
—
6
Total
$
17
$
—
$
—
$
—
$
17
Notes
to
Financial
Statements
—
continued
June
30,
2026
Victory
Variable
Insurance
Funds
II
32
(Unaudited)
10.
Segment
Reporting:
The
Adviser’s
Management
Committee
acts
as
the
Fund’s
Chief
Operating
Decision
Maker
(“CODM”).
The
Fund
represents
a
single
operating
segment,
as
the
CODM
monitors
the
operating
results
of
the
Fund
as
a
whole
and
the
Fund’s
long-term
strategic
asset
allocation
is
predetermined
in
accordance
with
the
Fund's
single
investment
objective.
The
financial
information
in
the
form
of
the
Fund’s
portfolio
composition,
total
returns,
expense
ratios,
and
changes
in
net
assets,
which
are
used
by
the
CODM
to
assess
the
segment’s
performance
versus
the
Fund’s
comparative
benchmarks
and
to
make
resource
allocation
decisions
for
the
Fund’s
single
segment,
is
consistent
with
that
presented
within
the
Fund’s
financial
statements.
Segment
assets
are
reflected
on
the
accompanying
Statement
of
Assets
and
Liabilities
as
“total
assets”
and
significant
segment
expenses
are
listed
on
the
accompanying
Statement
of
Operations.
Victory
Funds
P.O.
Box
182593
Columbus,
Ohio
43218-2593
Visit
our
website
at:
vcm.com
Call
Victory
at:
(800)
539-3863
19636-0826
(b)  The Financial Highlights are included as a part of the Financial Statements filed under Item 7(a) of this Form.
 
Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies.
 
         Not applicable.
 
Item 9. Proxy Disclosures for Open-End Management Investment Companies.
 
Proxy disclosures, if any, are included as part of the Financial Statements filed under Item 7(a) of this Form. 
 
Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.
 
Not applicable. 
 
Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.
 
Not applicable.
 
Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
 
Not applicable.
 
Item 13. Portfolio Managers of Closed-End Management Investment Companies.
 
Not applicable.
 
Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
 
Not applicable.
 
Item 15. Submission of Matters to a Vote of Security Holders.
 
Not applicable.
 
Item 16. Controls and Procedures.
 
(a)  The Registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures as conducted within 90 days of the filing date of this report, that those disclosure controls and procedures provide reasonable assurance that material information required to be disclosed by the Registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.
 
(b)  There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that occurred during the period covered by this report that have materially affected or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
 
Item 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
 
Not applicable.
 
Item 18. Recovery of Erroneously Awarded Compensation.
 
Not applicable.
 
Item 19. Exhibits.
 
(a)(1) Not applicable.
 
(a)(2) Not applicable.
 
(a)(3) The certifications required by Rule 30a-2(a) of the Investment Company Act of 1940 are attached hereto.
 
(a)(4) Not applicable
 
(a)(5) Not applicable
 
(b) The certifications required by Rule 30a-2(b) of the Investment Company Act of 1940 and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.
 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
(Registrant)            Victory Variable Insurance Funds II        
 
 
By (Signature and Title)                  /s/ Carol D. Trevino                                                                                  
                                         Carol D. Trevino, Treasurer and Principal Financial Officer
 
 
Date      August 21, 2026         
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
 
 
By (Signature and Title)                  /s/ Thomas Dusenberry                                                                             
                                           Thomas Dusenberry, President and Principal Executive Officer
 
 
Date      August 21, 2026
 
 
By (Signature and Title)                  /s/ Carol D. Trevino                                                                                  
                                         Carol D. Trevino, Treasurer and Principal Financial Officer
 
 
Date      August 21, 2026
 
 
 
 
 
 
 
 
 
 
 
 
 
ATTACHMENTS / EXHIBITS

ATTACHMENTS / EXHIBITS

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