US fixed-income markets faced a tougher backdrop in 1Q26, as Iran War-related inflation reset Fed expectations and lifted Treasury yields.
The Low Duration High Income Fund (I Share) underperformed the ICE 1–3 Year US Cash High Yield Index during the first quarter.
The Fund’s out-of-benchmark allocations to MBS and commercial MBS contributed positively to performance over the period.
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Market Overview
US fixed-income markets faced a tougher backdrop in 1Q26, as Iran War-related inflation reset Fed expectations and lifted Treasury yields. Credit spreads1 widened late in the quarter, though ceasefire hopes limited the
