Victory Floating Rate C RSFCX

Victory Floating Rate Fund’s returns looked attractive prior to 2022, but after the 12 months ending August 2023, they no longer do. The fund’s Y share class ended that period last among its distinct peers; it underperformed its median peer by more than 450 basis points and the category index, the Morningstar LSTA US LL Index, by more than 500. This reflected some poor sector choices—media and healthcare in particular—that got hit especially hard in the confluence of inflation- and coronavirus-labor-shortages-driven increased labor costs (healthcare) and reduced advertising due to recession concerns (media). Still, our overall assessment of the strategy stands: It’s not a standout in either positive or negative ways.