Summary

• Virtus Newfleet Multi-Sector Short Term Bond Fund (Class I) returned 0.46% in the first quarter versus the ICE BofA 1-3 Year A-BBB US Corporate Index return of 0.31%.
• Geopolitical risks, uncertainty around private credit and AI, and volatility in energy markets drove shifting inflation expectations and weighed on risk sentiment.
• Private credit markets came under pressure due to their exposure to sectors vulnerable to AI disruption.

Fixed Income Market Review

The first quarter of 2026 challenged the prevailing market narrative of above-trend economic growth, moderating inflation, and global central bank expectations. Geopolitical risks, uncertainty around private credit and AI, and volatility in energy markets drove