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American Century Value Fund Q4 2025 Commentary

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⚡ Quantum Brief
U.S. equities surged in Q4 2025, capping another year of double-digit annual gains despite economic headwinds like a softening labor market. The Federal Reserve’s interest rate adjustments drove investor optimism, overshadowing risks and fueling market momentum through year-end. American Century’s Value Fund underperformed due to poor stock selection and underweighting the communication services sector relative to benchmarks. The fund targets undervalued companies with strong fundamentals, betting their earnings potential remains mispriced by broader markets. Performance lagged as macroeconomic resilience clashed with the portfolio’s contrarian strategy, highlighting challenges in value investing amid sustained growth.
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American Century Investments44 FollowersFollow5ShareSavePlay(8min)CommentsSummaryU.S. stocks advanced in the fourth quarter, achieving double-digit gains for the calendar year once again.Stock selection and below-benchmark exposure in the communication services sector weighed on performance.The portfolio seeks to invest in companies where we believe the valuation does not reflect the quality and normal earnings power of the company. Dougal Waters/DigitalVision via Getty Images Portfolio Review Another strong year for equities. U.S. stocks advanced in the fourth quarter, achieving double-digit gains for the calendar year once again. Investors shrugged off various risks, including a weakening labor market, and cheered the Federal Reserve's (Fed's) interest rateThis article was written byAmerican Century Investments44 FollowersFollowAmerican Century Investments is a leading asset manager focused on delivering investment results and building long-term client relationships while supporting research that can improve health and save lives. Note: This account is not managed or monitored by American Century Investments, and any messages sent via Seeking Alpha will not receive a response. For inquiries or communication, please use American Century Investments' official channels.

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