Nomura Small Cap Value Fund Q4 2025 Commentary

Macquarie Asset Management31 FollowersFollow5ShareSavePlay(11min)CommentsSummaryFor 4Q25, Nomura Small Cap Value Fund Institutional class shares slightly lagged the return of its benchmark, the Russell 2000 Value Index.Stock selection and an underweight allocation to the healthcare sector were the most notable detractors from the Fund's performance for the quarter.The Fund's position in medical device company Integer Holdings Corp. detracted for the quarter after management stated its revenue growth for 2026 will come in below prior expectations.Herc Holdings Inc. outperformed during the quarter when the company reported earnings that were better than analysts' expectations.The Fund ended 4Q with overweight allocations to sectors where we viewed valuations and free cash flow generation as more attractive. Pongsak Sapakdee/iStock via Getty Images Market review US equities finished higher for 4Q25 amid the longest government shutdown in history. The Fund's benchmark, the Russell 2000® Value Index, advanced 3.26%. Small-cap growth equities lagged small-cap value equities during the quarter as the Russell 2000® GrowthThis article was written byMacquarie Asset Management31 FollowersFollowMacquarie Asset Management (MAM) is the asset management division of Macquarie Group. MAM is an integrated asset manager across public and private markets offering a diverse range of capabilities, including real assets, real estate, credit, equities and multi-asset solutions. Macquarie Group refers to Macquarie Group Limited and its subsidiaries and affiliates worldwide. Delaware Funds by Macquarie refers to certain investment solutions that MAM distributes, offers, or advises. Investment advisory services are provided to the Delaware Funds by Delaware Management Company, a series of Macquarie Investment Management Business Trust (MIMBT), a Securities and Exchange Commission (SEC) registered investment adviser.

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