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Q1 2025 Fund Updates

Victory Capital Investments Logo

Fixed income franchise

At the start of the year, it seemed like financial markets were priced for perfection with both fixed income and equity valuations extended. During the first quarter, sentiment shifted to the downside and volatility spiked given all the uncertainty regarding tariffs. Stocks sold off and volatility spiked. Nevertheless, fixed income enjoyed a solid quarter and once again demonstrated its value as a diversifier for equity risk. Learn more about how the yield curve has shifted and how credit spreads are moving in this commentary from Victory Income Investors.

Pioneer Investments Logo

Fixed income franchise

Late last year, the U.S. economy appeared to be headed for a remarkable soft landing. Domestic inflation was poised to continue its descent to the Federal Reserve’s 2% target without a significant rise in unemployment. However, the macroeconomic outlook has changed significantly over the past couple months, as the reality of higher U.S. import tariffs is extrapolated into higher prices and lower inflation-adjusted spending in upcoming quarters. The Pioneer Investments fixed income team believes the odds of a recession have materially increased. Learn more about how this could impact fixed income investors and how the team is positioning portfolios in response.

RS Investments Logo

Global equity franchise

Global equities were not immune from the turmoil seen in our domestic equity markets as aggressive U.S. trade policy and the possible ramifications of this shift created global market uncertainty. It was interesting to see emerging markets outperform developed markets during the first quarter, with the latter weighed down by tariff-related volatility in the U.S. and the former benefitting from weakness in the U.S. dollar. How is all this likely to impact global equities going forward? Read more from the team at RS Global.

Pioneer Investments Logo

U.S. and global equities franchise

The S&P 500® Index reached new lows in the first quarter of 2025, marking its worst quarter of performance since 2022. The poor performance was due to weakening economic indicators, as well as uncertainty surrounding tariffs, which drastically lowered consumer confidence and revived upward pressures on inflation. Despite the uncertainty and suggestions that the economy is weakening, Pioneer Investments does not anticipate a recession. Learn more about where the team is finding more opportunities and how they are positioning for what’s to come.


Value-oriented equity franchise

As we wrote at year-end, valuations looked extreme in many areas of the equity market, as measured by forward P/E ratios and relative to fixed income. Given all the questions surrounding tariffs, inflation, and economic growth, it’s no surprise that many areas of the market were vulnerable to a pullback. In this environment, Integrity increased weights in financials and consumer staples, while trimming exposure to industrials, technology and consumer discretionary. Learn how these and other moves contributed to first quarter performance. Read more from Integrity Asset Management.

RS Investments

Value-oriented equity franchise

After two consecutive years of 20%-plus returns for the broad market (as measured by the S&P 500® Index), investors were content to take profits and reduce exposure to equities. As a result, the S&P 500® Index finished with its worst-performing quarter since mid-2022, and volatility jumped among all the swirling uncertainty. Of course, domestic value-oriented equities were not immune from declining investor sentiment. But on a relative basis, the value style box shined compared to growth. Following years of low interest rates elevating growth stock valuations, is value investing now poised for a period of outperformance? Read more from the RS Value team.

Value-oriented equity franchise

Frantic policy out of DC sent shockwaves throughout the global financial markets during the first quarter. In the U.S., there was nowhere to hide as declines were broad based across different size and style segments. But despite the volatility and uncertainty, we believe this may be an opportune time for many investors to revisit unloved and under-owned small- and mid-cap equities. Read why it may be time for a fresh look at these asset classes from Sycamore Capital.

International equity franchise

International equities began the year with positive momentum as investors looked to diversify away from U.S. market concentration. Even as market volatility surged following U.S. tariff announcements (which eroded business confidence and risks disrupting global supply chains), the Trivalent team sees intriguing opportunities across the global equity landscape. The European Central Bank cut rates to stimulate economic activity, while infrastructure and defense spending could provide another tailwind. From a valuation perspective, international small-cap stocks also appear attractively priced relative to both U.S. and international large caps. Read more from Trivalent.

RS Investments

Growth-oriented equity franchise

It was a rough first quarter for U.S. equities and growth stocks in particular. The turmoil surrounding new trade policies and tariffs resulted in elevated volatility and worsening investor sentiment. Monetary policy and the trajectory of interest rates have also been pain points for U.S. investors. Tariffs are, in effect, a form of taxation, and to the extent possible, future higher costs are likely to be passed on to consumers. This could have a ripple effect in terms of inflation. But despite the turmoil, we like to remind investors that volatility also breeds opportunity. Read more about the outlook for growth stocks and why the RS Growth team remains cautiously optimistic about the health of the domestic economy.

Growth and core equity franchise

Within the Russell 3000® Index benchmark, the Russell 3000® Value Index outperformed Russell 3000® Growth Index during the first quarter, a departure from the prior quarter. It’s likely that concerns over tariffs, government spending, and possible recession pushed investors towards those stocks deemed safer and with more attractive valuations. Not surprisingly, large- and mid-cap stocks outperformed small caps in this environment. Learn more about how Munder Capital Management has been positioning portfolios and what’s been contributing and detracting from performance.

WestEnd Advisors Logo

Macroeconomic core strategy franchise

The first quarter was a confusing time for investors. Given all the noisy data and policy uncertainty, WestEnd Advisors acknowledges the risk of near-term economic deceleration. Still, evolving growth drivers could extend growth in the intermediate term, and there appear to be significant active opportunities within a six- to 18-month investment horizon. Broadly speaking, positioning portfolios with a mix of defensive and economically sensitive exposures may be a smart way to balance risk and opportunities. Get more economic insights and learn more from WestEnd Advisors.



Carefully consider a fund's investment objectives, risks, charges and expenses before investing. To obtain a prospectus or summary prospectus containing this and other important information, visit www.vcm.com/prospectus. Read it carefully before investing.

Funds distributed by Victory Capital Services, Inc., an affiliate of Victory Capital Management Inc. and WestEnd Advisors.

All investments carry a certain degree of risk including the possible loss of principal, and an investment should be made with an understanding of the risks involved with owning a particular security or asset class. Interested parties are strongly encouraged to seek advice from qualified tax and financial experts regarding the best options for your particular circumstances.

Advisory services offered by Victory Capital Management Inc. or its affiliate, WestEnd Advisors, both SEC-registered investment advisers.

WestEnd Advisors provides the day-to-day management of portfolios for which it serves as the investment adviser.

The opinions are as of the date noted and are subject to change at any time due to changes in market or economic conditions. The comments should not be construed as a recommendation of individual holdings or market sectors, but as an illustration of broader themes.

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