In the second quarter of 2026, the Victory RS Mid Cap Growth Fund achieved notable success, surpassing the performance of the Russell Midcap Growth Index. This strong showing was largely driven by strategic stock picks in the Technology and Producer Durables industries. While these sectors contributed positively, some of the gains were counterbalanced by less favorable stock selection in the Energy and Consumer Discretionary sectors.

This period of outperformance occurred amidst a backdrop of vibrant economic growth and substantial gains across the equity market. Specifically, mid-cap growth stocks, as defined by the Russell Midcap Growth Index, demonstrated a superior return of 14.55% compared to mid-cap value stocks, which saw a 13.40% increase as measured by the Russell Midcap Value Index. This indicates a favorable environment for growth-oriented investments within the mid-cap segment.

Looking ahead, the fund maintains a strong conviction in technology-focused enterprises. The widespread adoption of technology-driven solutions for work, commerce, and communication during recent times has, in the fund's view, permanently accelerated the embrace of these innovations. This trend is expected to continue benefiting technology companies at the expense of traditional products and services, positioning them for sustained long-term growth.

The successful trajectory of the Victory RS Mid Cap Growth Fund underscores the importance of astute sector-specific investment choices and adaptability to evolving market dynamics. The continued belief in technology's long-term potential highlights a forward-thinking approach that seeks to capitalize on innovation and societal shifts.