Victory Capital Holdings, Inc. Class A Common Stock · NASDAQ:VCTR
Victory Capital Holdings, Inc. Class A Common Stock — WestEnd Advisors — Q1 2026 Earnings Presentation
24 slides from Victory Capital Holdings, Inc. Class A Common Stock's earnings presentation, Jan 5, 2026
Slide 1: Macroeconomic Highlights Q1 2026
Macroeconomic Highlights Q1 2026 Macro Drives Markets. WestEnd Knows Macro. For Financial Professional Use Only – Not for Further Distribution 20260105-5097554
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: GDP growth stead
Slide 3: WestEnd Outlook Highlights
WestEnd Outlook Highlights • The global economic cycle continues to exhibit signs of being at an advanced stage, particularly within developed economies, including the U.S., where GDP appears to have stabilized in the back half of 2025. We see potential for a temporary reacceleration in U.S. economi
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. (incl. Small-Cap alloc.) • Europe • Asia (Developed and EM) • Emerging Markets (ex As
Slide 6: U.S. Economic & Market Backdrop
U.S. Economic & Market Backdrop westendadvisors.com | info@westendadvisors.com | 888.500.9025 Macroeconomic Highlights Q1 2026 | 5 For Financial Professional Use Only – Not for Further Distribution 20260105-5097554
Slide 7: GDP Growth Steady After First Half Slowdown
GDP Growth Steady After First Half Slowdown CONSUMPTION STILL THE MAIN DRIVER OF U.S. GROWTH 8% Contribution to Real GDP Growth (YoY) 7% 6% 5% Portfolio Impact: The latest GDP data suggest 4% 3% economic growth stabilized in Q3 after a 2% slowdown in the first half of 2025, driven by 1% 0% resilient
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 ongoing interest rate cuts can drive a bro
Slide 9: Labor Market Unlikely to Materially Improve
Labor Market Unlikely to Materially Improve PAYROLL GROWTH PRECARIOUSLY SOFT 5% 0 .1 4% Portfolio Impact: Our outlook for slowing payrolls continued to 0 .0 9 Year-Over-Year Growth 3% 0 .0 8 2% 0 .0 7 play out in 2025. We view the directionality and momentum in 1% 0 .0 6 the labor market to be one o
Slide 10: Tariffs Lifting Goods Prices, Yet Disinflation Can Continue
Tariffs Lifting Goods Prices, Yet Disinflation Can Continue EARLY STAGE OF PRICE PRESSURES FROM TARIFFS 4% Contribution from High Import Content Goods 3% Contribution from Other Goods Portfolio Impact: As we saw last year, the Fed has a Year-Over-Year Growth Core Goods CPI 2% sensitive reaction func
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% S&P 500 Total Return Contributions 35% 30% Portfolio Impact: Earnings growth is expected to be strong 25% 20% 21% 23% 7% 28% 29% 14% in 2026, driven by continued leadership from Information 15
Slide 12: U.S. Sector Outlook
U.S. Sector Outlook westendadvisors.com | info@westendadvisors.com | 888.500.9025 Macroeconomic Highlights Q1 2026 | 11 For Financial Professional Use Only – Not for Further Distribution 20260105-5097554
Slide 13: Market Concentration At New Record High
Market Concentration At New Record High S&P SECTOR BREAKDOWN EXPOSURE 40% 35% 2014 Q4 2025 Portfolio Impact: Market composition has changed over the last 10+ years, with the Information Technology and Weight in S&P 500 30% 25% Communication Services sectors rising as a proportion of the 20% market a
Slide 14: Health Care: Refocusing on Fundamentals
Health Care: Refocusing on Fundamentals EVOLUTION OF HEALTH CARE POLICY 2% Portfolio Impact: Waning policy headwinds, a benign inflation Instantaneous EPS Shock* 0% outlook, and improving M&A appetite support our overweight of -2% -4% Health Care, and particularly the Biotech industry. As policy -6%
Slide 15: Information Technology: Opportunity & Uncertainty
Information Technology: Opportunity & Uncertainty PROJECTED AI/TECH-RELATED MEGA-CAP FREE CASH FLOW $2,500 Includes: META, GOOGL, $2,000 MSFT, AAPL, NVDA, AMZN, Portfolio Impact: Sectors like Information Technology and TSLA, AVGO, ORCL, and PLTR Communication Services appear poised to generate durab
Slide 16: Macro and Regulatory Backdrop Supportive for Financials
Macro and Regulatory Backdrop Supportive for Financials LENDING ACTIVITY SHOWING IMPROVEMENT 15% 10% Portfolio Impact: The Financials sector continues to deliver Year-Over-Year Growth consistent earnings growth, supported by a stable 5% macroeconomic backdrop, capital markets momentum, and 0% benign
Slide 17: International Economic & Market Backdrop
International Economic & Market Backdrop westendadvisors.com | info@westendadvisors.com | 888.500.9025 Macroeconomic Highlights Q1 2026 | 16 For Financial Professional Use Only – Not for Further Distribution 20260105-5097554
Slide 18: Global Cycle is Advanced – Expect Slow but Wider Growth
Global Cycle is Advanced – Expect Slow but Wider Growth SLOW GROWTH, GRADUAL EASING POINTS TO ADVANCED CYCLE 2.0 Q3 '25 YoY Real GDP Growth vs 20-Year Average* Expansion 1.5 Recovery Strong Growth Strong Growth Portfolio Impact: Real GDP and EPS growth in the U.S. has Tight Policy 1.0 Easy Policy co
Slide 19: International Offers Range of Opportunities
International Offers Range of Opportunities INTERNATIONAL GROWTH OPPORTUNITIES ARE ATTRACTIVE 25% 25 EPS Growth 20% P/E Ratio 20 Portfolio Impact: We see attractive opportunities in U.S. FY 2026 EPS Growth FY 2026 P/E Ratio 15% 15 small-caps, where earnings recovery potential is strong without conce
Slide 20: Interest Rates & Real Assets
Interest Rates & Real Assets westendadvisors.com | info@westendadvisors.com | 888.500.9025 Macroeconomic Highlights Q1 2026 | 19 For Financial Professional Use Only – Not for Further Distribution 20260105-5097554
Slide 21: Uninverted Long End Signals Growing Value in Duration
Uninverted Long End Signals Growing Value in Duration BACK END OF CURVE HAS NORMALIZED 5.5 5.0 Portfolio Impact: We believe further yield curve steepening 4.5 is likely to be focused at the ultra short-end of the curve in Interest Rate (%) 2026 as the Federal Reserve returns to a neutral rate 4.0 st
Slide 22: Low Risk Premium Means Diversification is Key
Low Risk Premium Means Diversification is Key LIMITED VALUE ACROSS THE CORPORATE CREDIT SPACE Option-Adjusted Spread (Bps) for Investment 600 Grade Bond Sectors vs Treasury Curve 500 Highest value post-GFC Portfolio Impact: Historically depressed credit spreads and 400 equity earnings yields could f
Slide 23: Asset Class Returns Driven by Macro Environment
Asset Class Returns Driven by Macro Environment 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 expos
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