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Q1 2026 Fund Updates

Victory Capital Investments Logo

Fixed Income Franchise

Although the year began on constructive footing—with inflation continuing its gradual descent, stable credit spreads near historic tights, and the Federal Reserve preaching patience—things quickly changed in late February after new military operations began in Iran. Interestingly, the 10-year Treasury yield ended the quarter at 4.3%, nearly unchanged compared to year-end 2025, but the path there was quite bumpy. Nevertheless, Victory Income Investors continues to believe that fixed income offers compelling yield and diversification benefits in the current unsteady market. Read the full commentary.

Pioneer Investments Logo

Fixed Income Franchise

Turmoil wasn’t relegated to equity markets alone during the first quarter. Fixed income markets also experienced plenty of volatility as Treasury yields rose and the curve bear-flattened, with 2-year Treasury yields rising faster than their 10-year counterparts. Within spread sectors, Agency MBS led performance, while Investment Grade Corporates generally lagged as spread widened and investors repriced risk. In this environment, Pioneer Investments has recalibrated its macroeconomic outlook. Learn how this might impact fixed income portfolios going forward.

RS Investments Logo

Global Equity Franchise

After starting the year on the upswing, global equities reversed course and declined in March as conflict gripped the Middle East. Given the spike in oil prices, Energy was by far the top performing global sector, followed by Utilities and Materials, which were supported by higher commodity prices. The United Kingdom registered a positive return for the first quarter, largely due to its exposure to the Energy sector, while continental Europe traded down on consumer weakness. What’s the outlook for global equities, and which regions are better positioned? Read more from the RS Global team.

Pioneer Investments Logo

U.S. and Global Equity Franchise

The first quarter of 2026 was shaped by two distinct and defining episodes. The first was a technology-driven selloff, as fears of AI-driven displacement gripped the software sector. The second, and far more consequential, began in late February with new military actions against Iran. The United States entered the conflict with notable economic momentum and equity markets near all-time highs. But now there is increased uncertainty in our near-term outlook. As a result, there is a wide distribution of potential outcomes, ranging from the relatively benign to severe global contraction. Read more from Pioneer Investments.


Value-Oriented Equity Franchise

Markets entered 2026 navigating an increasingly fragile private credit cycle, elevated interest rates, and concerns over AI’s impact on everything from employment to existing business models. If that wasn’t enough, the outbreak of the Iran conflict and the closing of the Strait of Hormuz poured fuel on the fire. Will there be another financial crisis like 2008, stagflation like the 1970s, or mass layoffs and bankruptcies from the impact of AI? Integrity Asset Management shares its thoughts and cautions investors that markets have rarely rewarded those who react to uncertainty with haste. Read more from Integrity Asset Management.

RS Investments

Value-Oriented Equity Franchise

The first quarter was marked by elevated volatility, and the Iran conflict (and oil prices) dominated headlines; however, there were some meaningful changes underway regarding market internals. Since the beginning of the year, we’ve witnessed a decisive shift in market leadership and a rotation away from the mega-cap growth and AI-driven themes that dominated the previous year. As a result, we continue to be optimistic about value-oriented segments of the market. Read the full market commentary from the RS Investments Value Team.

Value-Oriented Equity Franchise

The first quarter of the year was a tale of two markets. After peaking in late January, major U.S. equity indices trended lower through the end of the quarter following the launch of military operations in Iran. Naturally, the outlook for the remainder of 2026 hinges on the resolution of the conflict. A near-term resolution would likely limit the adverse impact to the economy, while prolonged war and sustained or even higher oil prices could compress corporate profit margins and erode consumer purchasing power.

International Equity Franchise

International small-cap equities declined in the first quarter amid heightened market volatility and escalating geopolitical tensions. Looking ahead, the trajectory of the Middle East conflict remains a key variable for global markets. A resolution could unlock pent-up demand and help ease inflationary pressures, while prolonged instability may continue to weigh on consumer-facing sectors and energy-sensitive industries. Get more insights on global markets and read the full commentary from Trivalent Asset Management.

RS Investments

Growth-Oriented Equity Franchise

Although the conflict in Iran dominated headlines during the second quarter, it was also notable that a significant rotation and change of market leadership was occurring. The recent dominance of mega-cap tech and AI-themed growth stocks shifted in favor of energy, industrials and basic materials, among other sectors. It was also interesting that investors seemed to rotate down the cap spectrum, with many small-cap stocks outperforming their large-cap counterparts. Will this trend continue, and how should growth-oriented investors position? Learn where the RS Growth team sees opportunity and upside potential.

WestEnd Advisors Logo

Macroeconomic Core Strategy Franchise

After a constructive start to the year, the Iran conflict took center stage later in the first quarter and elevated both volatility and near-term inflation pressures. Ultimately, its broader macro impact will depend on how (and how long) this geopolitical turmoil unfolds. Nevertheless, WestEnd Advisors believes the underlying macroeconomic conditions still show potential for continued late-cycle growth. Dig deeper into the current environment and get more macro insights from WestEnd Advisors.



FOR FINANCIAL PROFESSIONAL USE ONLY/NOT FOR USE WITH THE GENERAL PUBLIC.

Carefully consider a fund's investment objectives, risks, charges and expenses before investing. To obtain a prospectus or summary prospectus containing this and other important information, visit www.vcm.com/prospectus. Read it carefully before investing.

Funds distributed by Victory Capital Services, Inc., an affiliate of Victory Capital Management Inc. and WestEnd Advisors.

All investments carry a certain degree of risk including the possible loss of principal, and an investment should be made with an understanding of the risks involved with owning a particular security or asset class. Interested parties are strongly encouraged to seek advice from qualified tax and financial experts regarding the best options for your particular circumstances.

Advisory services offered by Victory Capital Management Inc. or its affiliate, WestEnd Advisors, both SEC-registered investment advisers.

WestEnd Advisors provides the day-to-day management of portfolios for which it serves as the investment adviser.

The opinions are as of the date noted and are subject to change at any time due to changes in market or economic conditions. The comments should not be construed as a recommendation of individual holdings or market sectors, but as an illustration of broader themes.

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