Victory Capital Holdings, Inc. Class A Common Stock · NASDAQ:VCTR
Victory Capital Holdings, Inc. Class A Common Stock — WestEnd Advisors — Q2 2026 Earnings Presentation
24 slides from Victory Capital Holdings, Inc. Class A Common Stock's earnings presentation, Apr 1, 2026
Slide 1: Macroeconomic Highlights Q2 2026
Macroeconomic Highlights Q2 2026 Macro Drives Markets. WestEnd Knows Macro. 20260401-5356963
Slide 2: Table of Contents
Table of Contents WestEnd Outlook Highlights ………………………………………………………………………………………………… 2 U.S. Equity Sector Allocations ………………………………………………………………………………………………… 3 U.S. International and Fixed Income Allocations …………………………………………………………………………… 4 U.S. Economic & Market Backdrop Economic Cycle: Plods forward to
Slide 3: WestEnd Outlook Highlights
WestEnd Outlook Highlights • While macroeconomic fundamentals suggest late-cycle economic growth can continue this year, the conflict in Iran has introduced market volatility and uncertainty. The degree to which economic fundamentals are impacted by the conflict over our investment horizon is, in ou
Slide 4: U.S. Equity Sector Allocations
U.S. Equity Sector Allocations WESTEND ETF STRATEGIES Current large-cap U.S. equity sector allocation and avoidance* Sector Sector Allocations Avoidance • Health Care • Energy • Consumer Staples • Industrials • Utilities • Materials • Communication Services • Real Estate • Consumer Discretionary • I
Slide 5: International Equity and Fixed Income Allocations
International Equity and Fixed Income Allocations WESTEND GLOBAL ETF STRATEGIES Current regional equity allocation positioning in global portfolios* Regional Equity Overweights Regional Equity Underweights • U.S.A. • Developed Asia • Western Europe • Emerging Markets WESTEND BALANCED ETF STRATEGIES
Slide 6: U.S. Economic & Market Backdrop
U.S. Economic & Market Backdrop westendadvisors.com | info@westendadvisors.com | 888.500.9025 Macroeconomic Highlights Q2 2026 | 5 20260401-5356963
Slide 7: Economy Steady to End Q1 Amid Geopolitical Crosswinds and Market Volatility
Economy Steady to End Q1 Amid Geopolitical Crosswinds and Market Volatility HIGH FREQUENCY DATA IMPLIES RESILIENT GROWTH SO FAR 5.0 Year-Over-Year Growth (%) 4.0 Portfolio Impact: The latest high-frequency data 3.0 suggests economic growth was steady at the end of 2.0 Q1 in the face of oil supply di
Slide 8: Policy Balance to Remain Supportive, But Set to Moderate in Second Half
Policy Balance to Remain Supportive, But Set to Moderate in Second Half GROWTH CONTRIBUTIONS FROM OBBBA 0.5 Percentage Point (PPT) Contribution to Real 0.4 0.3 Portfolio Impact: Changes to tax policy are set to support 0.2 income growth in early 2026, while the interest rate cutting cycle can drive
Slide 9: Labor Market Unlikely to Materially Improve
Labor Market Unlikely to Materially Improve PAYROLL GROWTH PRECARIOUSLY SOFT 5% Portfolio Impact: Our outlook for slowing payrolls continued to 4% Year-Over-Year Growth 3% play out in 2025 and the start of 2026. We view the 2% directionality and momentum in the labor market to be one of 1% 0% the mo
Slide 10: Gauging the Impact from Middle East Conflict
Gauging the Impact from Middle East Conflict FED ESTIMATES OF IMPACTS FROM OIL SHOCKS 0.25 Portfolio Impact: We anticipate the net impact of PPT Deviation from Baseline 0.20 the war will be higher inflation and lower growth. 0.15 Our portfolios could benefit on a relative basis 0.10 through both our
Slide 11: EPS Growth to Support Market, But Volatility Risk Elevated
EPS Growth to Support Market, But Volatility Risk Elevated CONTRIBUTORS TO S&P 500 TOTAL RETURN 50% 45% 40% Portfolio Impact: Earnings growth is still expected to be S&P 500 Total Return Contributions 35% 30% 25% 20% 23% 7% 28% 29% 14% strong in 2026, driven by continued leadership from 15% 21% 23%
Slide 12: U.S. Sector Outlook
U.S. Sector Outlook westendadvisors.com | info@westendadvisors.com | 888.500.9025 Macroeconomic Highlights Q2 2026 | 11 20260401-5356963
Slide 13: Positioning for Broader Market Leadership
Positioning for Broader Market Leadership MID-PHASE SECTORS MAKE UP RECORD WEIGHT IN S&P 500 60% 55% Dots Represent T12M Portfolio Impact: Market composition has changed Percent of S&P 500 Market Cap Earnings Share of S&P 500 50% significantly over the last 10+ years, with the 45% Information Techno
Slide 14: Information Technology: Opportunity & Uncertainty
Information Technology: Opportunity & Uncertainty PROJECTED AI/TECH-RELATED MEGA-CAP FREE CASH FLOW $3,000 Includes: META, GOOGL, $2,500 MSFT, AAPL, NVDA, AMZN, TSLA, AVGO, ORCL, and PLTR Portfolio Impact: Sectors like Information Technology and Communication Services appear poised to generate durab
Slide 15: Credit Trends Support Financials Outlook
Credit Trends Support Financials Outlook LOAN GROWTH NO LONGER JUST AN NDFI STORY 14.0% YoY % Change in Loan Balances 12.0% 10.0% 8.0% Portfolio Impact: The Financials sector continues to deliver 6.0% steady earnings growth, supported by ongoing capital markets 4.0% momentum, benign credit condition
Slide 16: Energy Sector Gains Likely Limited From Here
Energy Sector Gains Likely Limited From Here OIL & LIQUIDS MARKET DEMAND/SUPPLY BALANCE 2.5 150% '26 projection if ~10 mmboed 2.0 Percent Change in WTI Oil Price remain offline through Q2 100% Portfolio Impact: We continue to avoid U.S. Energy sector Oil Market Balance (mmboed) 1.5 exposure in U.S.
Slide 17: International Economic & Market Backdrop
International Economic & Market Backdrop westendadvisors.com | info@westendadvisors.com | 888.500.9025 Macroeconomic Highlights Q2 2026 | 16 20260401-5356963
Slide 18: International Offers Range of Opportunities
International Offers Range of Opportunities OPPORTUNITY IN EUROPE AND U.S. SMALL CAP 25% premium/discount to MSCI ACWI 20% DM sector agnostic forward P/E 15% Portfolio Impact: U.S. small caps and Europe offer sector- 10% neutral relative valuation discounts to the broad market, in 5% stark contrast
Slide 19: Navigating Near-Term Uncertainties
Navigating Near-Term Uncertainties OIL IMPORT DEPENDENCE GREATER IN ASIA AND EUROPE... 100% Net Oil Production as a % of Consumption 75% 50% Portfolio Impact: Europe and Asia both depend on imported oil, 25% but Asia’s heavier reliance on Gulf supply creates greater 0% regional vulnerability, in our
Slide 20: Interest Rates & Real Assets
Interest Rates & Real Assets westendadvisors.com | info@westendadvisors.com | 888.500.9025 Macroeconomic Highlights Q2 2026 | 19 20260401-5356963
Slide 21: Normalized Curve and High Real Yields Make Treasury Duration Appealing
Normalized Curve and High Real Yields Make Treasury Duration Appealing CURVE SHAPE HAS FULLY NORMALIZED 5.5 5.0 Portfolio Impact: The combination of a normalized interest 4.5 rate curve, in which longer maturities provide a yield advantage relative to shorter duration bonds, and high Interest Rate (
Slide 22: Short-Duration Corporate Bonds Less Exposed to Rising Credit Spreads
Short-Duration Corporate Bonds Less Exposed to Rising Credit Spreads LONG-DURATION CREDIT SPREADS WELL BELOW AVERAGE 3.00 2.75 Option-Adjusted Spread (PPT) 2.50 2.25 Portfolio Impact: Historically low credit spreads may 2.00 1.75 foreshadow lower risk premiums for risky assets, in our view. 1.50 Ele
Slide 23: The Macro Environment Drives Asset Class Returns
The Macro Environment Drives Asset Class Returns MACRO CONDITIONS DRIVE ASSET CLASS DISPERSION 17.5% Average Monthly Return (Annualized)* 15.0% 12.5% Portfolio Impact: Given our outlook for a late-cycle 10.0% environment, we continue to avoid the most economically 7.5% 5.0% sensitive real asset expo
Slide 24: Footnotes & Disclosures
Footnotes & Disclosures WestEnd Advisors, LLC (“WestEnd”), an SEC-registered investment adviser, operates as an autonomous Victory Capital® Investment Franchise. WestEnd’s active principals are responsible for managing the firm and its day-to-day operations. Registration of an investment adviser doe