Q1 2026 Strategy Commentaries • Fixed Income & Convertibles
Fixed Income Franchise
Turmoil wasn’t relegated to equity markets alone during the first quarter. Fixed income markets also experienced plenty of volatility as Treasury yields rose and the curve bear-flattened, with 2-year Treasury yields rising faster than their 10-year counterparts. Within spread sectors, Agency MBS led performance, while investment grade corporates generally lagged as spreads widened and investors repriced risk. In this environment, Pioneer Investments has recalibrated its macroeconomic outlook. Learn how this might impact fixed income portfolios going forward.
- Pioneer US Core Plus Fixed Income
- Pioneer US Investment Grade Corporate Credit
- Pioneer US Long Duration Credit
- Pioneer Global Corporate High Yield
- Pioneer Multi-Sector Fixed Income
- Pioneer US Multi-Asset Ultrashort Income
- Pioneer US Securitized Credit Opportunities
- Pioneer US Short Term Income
- Pioneer US Core Fixed Income
- Pioneer Multi-Asset Credit
- Pioneer US Agency MBS
- Pioneer US Agency MBS Short Duration
Q1 2026 Strategy Commentaries • U.S. and Non-U.S. Equity
U.S. and Global Equity Franchise
The first quarter of 2026 was shaped by two distinct and defining episodes. The first was a technology-driven selloff, as fears of AI-driven displacement gripped the software sector. The second, and far more consequential, began in late February with new military actions against Iran. The United States entered the conflict with notable economic momentum and equity markets near all-time highs. But now there is increased uncertainty in our near-term outlook. As a result, there is a wide distribution of potential outcomes, ranging from the relatively benign to severe global contraction. Read more from Pioneer Investments.
- Pioneer US Large Cap Core
- Pioneer US Large Cap Growth
- Pioneer International Equity
- Pioneer Global Equity
- Pioneer US Dividend Equity
Global Equity Franchise
After starting the year on the upswing, global equities reversed course and declined in March as conflict gripped the Middle East. Given the spike in oil prices, energy was by far the top performing global sector, followed by utilities and materials, which were supported by higher commodity prices. The United Kingdom registered a positive return for the first quarter, largely due to its exposure to the energy sector, while continental Europe traded down on consumer weakness. What’s the outlook for global equities, and which regions are better positioned? Read more from the RS Global team.
Value-Oriented Equity Franchise
Markets entered 2026 navigating an increasingly fragile private credit cycle, elevated interest rates, and concerns over AI’s impact on everything from employment to existing business models. If that wasn’t enough, the outbreak of the Iran conflict and the closing of the Strait of Hormuz poured fuel on the fire. Will there be another financial crisis like 2008, stagflation like the 1970s, or mass layoffs and bankruptcies from the impact of AI? Integrity Asset Management shares its thoughts and cautions investors that markets rarely reward those who react to uncertainty with haste. Read more:
- Integrity Micro-Cap Value
- Integrity Small-Cap Value
- Integrity Mid-Cap Value
- Integrity Small/Mid-Cap Value
Value-Oriented Equity Franchise
The first quarter of the year was a tale of two markets. After peaking in late January, major U.S. equity indices trended lower through the end of the quarter following the launch of military operations in Iran. Naturally, the outlook for the remainder of 2026 hinges on the resolution of the conflict. A near-term resolution would likely limit the adverse impact to the economy, while prolonged war and sustained or even higher oil prices could compress corporate profit margins and erode consumer purchasing power. As a result, market participants will have to weigh a broader range of possible outcomes than just three months ago. Read more from Sycamore Capital.
International Equity Franchise
International small-cap equities declined in the first quarter amid heightened market volatility and escalating geopolitical tensions. Looking ahead, the trajectory of the Middle East conflict remains a key variable for global markets. A resolution could unlock pent-up demand and help ease inflationary pressures, while prolonged instability may continue to weigh on consumer-facing sectors and energy-sensitive industries. Get more insights on global markets and read the full commentary from Trivalent Asset Management.
- Trivalent International Developed Equity
- Trivalent International Equity
- Trivalent International Small Cap
- Trivalent Emerging Markets Small Cap
Value-Oriented Equity Franchise
The first quarter was marked by elevated volatility, and the Iran conflict (and oil prices) dominated headlines; however, there were some meaningful changes underway regarding market internals. Since the beginning of the year, we’ve witnessed a decisive shift in market leadership and a rotation away from the mega-cap growth and AI-driven themes that dominated the previous year. As a result, we continue to be optimistic about value-oriented segments of the market. Read the full market commentary from the RS Investments Value Team.
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This material has been prepared by Victory Capital Management Inc. The comments should not be construed as a recommendation of individual holdings or market sectors, but as an illustration of broader themes. This material is for information purposes only and should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security. There is no guarantee that the information supplied is accurate, complete, or timely, nor does Victory Capital make any warranties with regards to the results obtained from its use. Past performance is no guarantee of future results.
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