In the fourth quarter of 2025, the Nomura Growth and Income Fund's Institutional Class shares delivered an impressive performance, surpassing its benchmark, the Russell 1000® Value Index. This success was largely attributed to strategic overweight positions within the information technology and financials sectors, where careful stock selection played a crucial role in driving excess returns. Micron Technology, for instance, contributed significantly due to its robust earnings and a promising outlook driven by artificial intelligence advancements.
US equity markets experienced a positive yet fluctuating period during the quarter, as investors processed a mix of economic signals. Despite delays in economic data releases caused by a government shutdown, indicators available towards the end of the quarter suggested a stable economic environment. This stability, combined with easing inflation and accommodating policy measures, created a favorable backdrop, particularly for growth-oriented sectors.
The forward outlook for US equities remains optimistic, supported by a combination of factors including a receding inflationary environment, ongoing policy support, and structural growth within the technology sector. While macroeconomic risks and market volatility are expected to persist, the underlying conditions are conducive to continued positive performance. The ability to identify and capitalize on these trends through strategic sector allocation and meticulous stock picking will be key to sustaining strong returns.
The diligent analysis and strategic decisions that led to the fund's outperformance underscore the importance of informed investment choices. In an ever-evolving economic landscape, focusing on sectors poised for growth and selecting resilient companies can yield substantial rewards. This proactive approach not only aims for financial prosperity but also reflects a commitment to leveraging market dynamics for sustainable development and positive economic contributions.
