The second quarter of 2026 witnessed a robust upturn in global equity markets, characterized by a substantial 14.93% increase in the MSCI All Country World Index. This impressive rally was primarily fueled by a noticeable reduction in tensions within the Middle East, coupled with a surging wave of investor confidence surrounding advancements in artificial intelligence. However, the Victory RS Global Fund's Class A Shares, assessed at their net asset value, did not keep pace with this market momentum, registering an underperformance relative to its benchmark.

During the period, market participants observed a significant shift in global sentiment. Geopolitical factors, which had previously cast a shadow over international markets, began to stabilize. This de-escalation of conflict in a critical region provided a much-needed boost to investor morale, paving the way for renewed confidence in global economic stability. Simultaneously, the burgeoning field of artificial intelligence captured the imagination of investors worldwide. Companies at the forefront of AI innovation experienced heightened interest and investment, contributing significantly to the overall market surge. This confluence of stabilizing geopolitical conditions and technological excitement created a fertile ground for equity growth, driving valuations higher across various sectors.

The robust market performance during this quarter underscores the intricate interplay of geopolitical stability, technological innovation, and investor psychology in shaping financial outcomes. While broad market indices painted a picture of widespread prosperity, the nuanced performance of individual funds, such as the Victory RS Global Fund, highlights the complexities of active investment management within dynamic market conditions.