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Victory Floating Rate R RSFKX Fund Analysis

Morningstar Medalist Rating
| Medalist Rating as of | See Victory Capital Investment Hub

Morningstar’s Analysis RSFKX

Will RSFKX outperform in future?

Get our overall rating based on a fundamental assessment of the pillars below.

  • Process Pillar

    The Process Pillar is our assessment of how sensible, clearly defined, and repeatable RSFKX’s performance objective and investment process is for both security selection and portfolio construction.

  • People Pillar

    The People Pillar is our evaluation of the RSFKX management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.

  • Parent Pillar

    The Parent Pillar is our rating of RSFKX’s parent organization’s priorities and whether they’re in line with investors’ interests.

A serious performance misstep notwithstanding, no changes to the pillar ratings.

Strategist Maciej Kowara

Maciej Kowara

Strategist

Summary

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.

by Maciej Kowara
Rated on Published on

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