Virtus SGA Global Growth Fund: Q2 2025 Performance Review

Instructions

This report provides an in-depth analysis of the Virtus SGA Global Growth Fund's performance during the second quarter of 2025, highlighting key contributing factors and strategic outlook.

Navigating Market Dynamics: A Quarter of Growth and Strategic Focus

Exceptional Performance in the Second Quarter of 2025

For the second quarter of 2025, the fund achieved a robust gross return of 12.1% and a net return of 11.3%. This performance favorably compares to the MSCI ACWI index, which registered an 11.5% return over the same period. The market saw a significant divergence between growth-oriented and value-oriented stocks, largely influenced by the strong performance of leading technology companies. This trend resulted in the MSCI ACWI Growth index surpassing its value counterpart.

Key Investment Drivers and Detractors

During the quarter, some of the most significant positive contributions to the fund's returns came from prominent technology companies. Microsoft, Arm Holdings, and Nvidia were among the top performers, reflecting the continued dominance of the tech sector in driving market gains. Conversely, UnitedHealth, Icon, and Apple were the main detractors, indicating some challenges in specific segments or individual stock performances within the fund's portfolio.

Strategic Outlook: Focus on Sustainable Growth and Value

The fund's management maintains a consistent investment philosophy, concentrating on businesses that are not only attractively valued but also demonstrate predictability in their operations, generate strong cash flows, and exhibit potential for sustained growth. This strategic approach is particularly crucial in an environment where market volatility could increase and overall economic growth might decelerate. By focusing on these resilient businesses, the fund aims to mitigate risks and capitalize on long-term opportunities, ensuring stability and potential for appreciation regardless of broader market fluctuations.

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