In the second quarter of 2026, the Victory Fund For Income (Class A shares, net asset value) demonstrated a positive total return, outperforming its designated benchmark. This period was characterized by substantial upward momentum in global equity markets, with major indices recording impressive gains. The fund's ability to exceed its benchmark in such an environment highlights its strategic positioning and the underlying strength of its investment choices, especially when juxtaposed against the performance of U.S. Treasury bonds.

For the second quarter ending on June 30, 2026, the Victory Fund For Income's Class A shares achieved a total return of 0.33%. This performance notably surpassed that of its benchmark index, the Bloomberg U.S. 1-5 Year Government Bond Index, which posted a total return of 0.22% over the same period. This indicates a modest but significant outperformance by the fund.

During this quarter, global equity markets experienced a powerful rally. The Dow Jones Industrial Average surged by 12.9%, the S&P 500 climbed by 14.8%, and the Nasdaq Composite led the charge with a remarkable 21.4% increase. These significant gains across all major equity indices underscore a broad-based positive sentiment in the market. Furthermore, all these equity indices delivered positive total returns and generated excess returns when compared to duration-neutral U.S. Treasury bonds, marking the third consecutive quarter of such robust performance.

The consistent outperformance of equity markets relative to bonds suggests a prevailing risk-on sentiment among investors. Factors contributing to this trend could include optimistic economic forecasts, strong corporate earnings, or perhaps a more accommodative monetary policy outlook than anticipated. For the Victory Fund For Income, navigating this dynamic landscape effectively was crucial, and its positive return in this period reflects successful management strategies amidst shifting market conditions.

The second quarter of 2026 saw the Victory Fund For Income deliver a commendable performance, slightly outpacing its bond market benchmark. This achievement occurred against a backdrop of surging equity markets, with all major U.S. indices showing strong growth and outperforming U.S. Treasury bonds for the third consecutive quarter. The fund's positive return underscores effective management in a period of significant market buoyancy.