AMD Flipbooks

Inside Your Growth Fund. Active Management Different investment styles come in and out of favour. Over the 40 years researching active managers, we have identified three academically proven drivers of excess return; Quality, Momentum and Value. Outlook The outlook for global economic growth remains uncertain, clouded by ongoing tariff disputes and resulting inflationary pressures. We continue to expect central bank policy decisions to diverge and anticipate two additional 0.25% rate cuts by the Federal Reserve in 2025. Geopolitical tensions remain elevated, with limited progress around the Russia-Ukraine conflict and renewed concerns surrounding the U.S. government shutdown. Equity markets rallied over the quarter, supported by robust corporate earnings and favourable government policies. However, market concentration in the U.S. remains near record highs, with just seven companies accounting for over 34% of the S&P 500 (SEI, 2025). While large-cap U.S. technology stocks continued to lead performance, previously overlooked segments, such as small-cap equities and emerging markets, began to show renewed strength. Despite the continued dominance of the Artificial Intelligence theme, SEI maintains a cautious stance, highlighting the fragility of such concentrated market leadership as unsustainable over the long term. Current Positioning Active management within globally diversified portfolios remains a cornerstone of our approach as we navigate the remainder of 2025. This is especially true within U.S. large-cap equities, where market concentration has reached acute levels. However, we continue to advocate for broad exposure across geographies and market capitalisations to mitigate concentration risks. Tactically, we are placing increased emphasis on value factors given elevated valuations elsewhere. On the macroeconomic front, we expect inflation to remain elevated for longer, especially as the effects of tariffs continue to filter through. While we do not currently anticipate a global recession, we remain alert to signs of economic weakness and policy divergence. ■ Value 44.0% ■ Momentum 26.0% ■ Quality 21.0% ■ Low Volatility 9.0% As at 30/09/2025 Building Block Insight SGMF Select Value Fund* (GBP Inst) This fund has delivered 19.07% year to date, with 2.25% alpha (relative to MSCI World Index as Benchmark). Drivers ● Benefited from style tailwinds and underweights to mega caps given record-high valuation levels. Positioning ● We expect value stocks to remain supported by market dynamics, including stubborn inflation and a reassessment of growth expectations. ● Sector preference remains tilted towards financials, industrials, and consumer staples. Source: SEI IMU. All data as at 30th September 2025. Data includes equity funds managed by SEI Investment Management Company and SEI Investments Global Ltd. *This fund is an Article 8 fund. Please see the Article 8 disclosure at the end of the document. 6

• Cover