In the second quarter of 2025, the Virtus SGA International Growth Fund reported its performance, showcasing both achievements and areas for improvement. Despite market fluctuations, the fund maintains a steady commitment to its fundamental investment strategies.
Detailed Investment Performance Analysis for Q2 2025
During the second quarter of 2025, the Virtus SGA International Growth Fund recorded a gross return of 9.4%, with a net return settling at 8.7%. This performance, while positive, trailed behind key market benchmarks. Specifically, the MSCI ACWI ex USA (Net TR) index achieved a 12.0% return, and the MSCI ACWI ex USA Growth (Net TR) index posted an impressive 13.7% return for the same period.
A detailed review of the fund's portfolio reveals the individual contributions of its holdings. The leading positive contributors to the fund's performance were notable technology and entertainment companies: Arm Holdings, TSMC (Taiwan Semiconductor Manufacturing Company), and Universal Music Group. These entities demonstrated robust growth and positively impacted the fund's overall returns. Conversely, some investments acted as significant detractors during the quarter. These included Aon, a global professional services firm, Icon, a contract research organization, and Yum China, a leading fast-food operator in China.
Despite the varying performances of individual stocks and the comparative underperformance against the broader indices, the fund management emphasizes its unwavering dedication to its established investment philosophy. This philosophy guides decisions irrespective of short-term market shifts or unexpected policy changes, aiming for long-term sustainable growth.
This quarter's results underscore the dynamic nature of international markets and the challenges of consistently outperforming specialized growth indices. Investors are reminded of the importance of a long-term perspective and the strategic discipline of maintaining a consistent investment approach through diverse market conditions. The fund's commitment to its philosophy suggests a focus on fundamental value and growth potential, which may yield stronger results in future periods.