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Q3 2025 Fund Updates

Victory Capital Investments Logo

Fixed Income Franchise

Risk assets performed well during the third quarter despite a slight uptick in inflation and rising concerns surrounding employment. The dominant theme has been, of course, the Federal Reserve, which ultimately moved ahead with a quarter-point rate cut in September. Fixed income performance was positive during the quarter as yields fell while credit spreads tightened further. The Treasury curve steepened as shorter-term yields fell in conjunction with the rate cut, while longer-term yields remained elevated on persistent fears of inflation and an ever-widening federal budget deficit. Learn more about fixed income markets in this commentary from Victory Income Investors.

Pioneer Investments Logo

Fixed Income Franchise

Financial markets posted strong returns in the third quarter of 2025. Economic activity exceeded expectations, especially with respect to consumer spending. However, labor markets showed signs of weakness despite the overall resilience in economic activity. Against this backdrop, Treasury yields moved lower across the curve. The Bloomberg US Aggregate Index outperformed Treasuries, as did all of the spread sectors. In terms of portfolio positioning, Pioneer Investments has taken a duration-neutral posture at prevailing yield levels and reduced the yield curve steepening exposure given current valuations. Get more insights into the fixed income markets in the third quarter commentary.

RS Investments Logo

Global Equity Franchise

Global Equities enjoyed a strong third quarter of 2025, continuing their advance on a combination of easing trade tensions, solid corporate earnings, and investor optimism around artificial intelligence. Asia/Pacific and Japan were among the top performing regions, with the latter’s export-oriented companies benefiting from a softer Yen and a decline in United States tariff rates. Emerging Markets and North America also had solid returns. But what’s the outlook for global investors in the face of elevated trade tensions and weaker labor market conditions? Learn more from the team at RS Global.

Pioneer Investments Logo

U.S. and Global Equity Franchise

Investors have obviously become more sanguine regarding the range of outcomes from the ongoing tariffs and trade negotiations between the U.S. and its sovereign counterparts. The robust rebound and equity market rally continued through the third quarter, but we continue to wonder if the equity market’s sharp rebound is ignoring the latent risks to the economy. Learn why Pioneer Investments is retaining an overall defensive orientation in portfolios and read which sectors the team is favoring and fading.


Value-Oriented Equity Franchise

Domestic equity markets continued to rally during the third quarter, but value strategies lagged the broader market. And looking at the smallest market-cap segments, the lowest return-on-equity (ROE) companies and non-earners, like pre-revenue biotech and nuclear companies, surged during the quarter as if we are heading back to a zero-interest-rate environment. We’re not so sure that’s where we are headed, and thus we believe there are many reasons to be optimistic about value stocks and active management going forward. Read how Integrity is positioning in this unusual environment.

RS Investments

Value-Oriented Equity Franchise

Although there seems to be an undercurrent of unease in the current economic and market backdrop, investors seemed largely unfazed during the third quarter, and stocks raced to new highs. Yet one must wonder: Are investors being excessively optimistic in the face of weakening economic and (especially) jobs data? There are real signs that suggest the economy is slowing, and the highest valuation stocks may be vulnerable. Read more about the current market and learn why the RS Investments Value Team continues to believe that actively managed, value-oriented approaches are well positioned going forward.

Value-Oriented Equity Franchise

The U.S. equity market continued its upward trajectory during the third quarter as a combination of tailwinds supported the risk-on narrative. The S&P 500 Index and the Nasdaq Composite hit multiple record highs. Even the beleaguered small cap asset class participated in the beta-induced rally. AI remained the dominant market theme with several high-profile deals announced between the key players. And the decision by the Federal Reserve to cut rates also helped fuel some of the risk-on sentiment. Looking ahead, what might derail this momentum driven and beta-induced market, and when will fundamental analysis be prioritized again? Get more insights into this market from Sycamore Capital.

International Equity Franchise

International small-cap equities rose for the third consecutive quarter, supported by easing trade tensions and resilient global economic data. All regions were positive, with strong gains across Asia Pacific and Canada, while Europe lagged the broader Index due to weaker macroeconomic momentum and political headwinds. International equities have demonstrated strength year-to-date as investors diversify away from U.S. market concentration, and we believe there are still opportunities for relative outperformance, particularly within international small-cap equities. Get more insights from Trivalent Asset Management.

RS Investments

Growth-Oriented Equity Franchise

A strong rally that began early in the second quarter continued throughout the third quarter. The Federal Reserve’s quarter-point rate cut in September helped fuel technology and communication services sectors, which continued to see strong earnings from the AI infrastructure build-out. Lower interest rates may also have rekindled investors’ interest in small cap stocks, which had been lagging the market. Despite the robust third quarter, there seems to be an undercurrent of unease in the current economic and market backdrop. Read all about the outlook for growth stocks from the RS Growth team.

WestEnd Advisors Logo

Macroeconomic Core Strategy Franchise

The U.S. and global stock markets continued to reach new all-time highs late into the third quarter. But what’s happening beneath the headlines? The global economy, the Fed, and markets face tensions as opposing macroeconomic forces perpetuate uncertainty. In response, WestEnd Advisors is navigating this late-cycle environment with a dynamic balance of select economically sensitive and defensive portfolio exposures. Dig deeper into this environment and get more insights from WestEnd Advisors.



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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.

20251106-4968364

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