American Century Value Fund — Q3 2025 Commentary and Positioning

During the third quarter of 2025, the American Century Value Fund navigated a mixed macroeconomic backdrop as rate expectations and sector rotation influenced security selection. Value-oriented holdings generally outperformed growth names, supported by pockets of strength in financials, energy and industrials. The fund’s emphasis on fundamentals and valuation discipline contributed positively versus growth-heavy benchmarks.

Financials were among the quarter’s biggest contributors, as several regional and national banks benefited from higher net interest margins and improving credit conditions. Energy holdings also added to returns, driven by disciplined capital allocation and resilient cash flows across integrated oil and gas companies. Industrial and select consumer cyclical names provided incremental gains as cyclical demand remained steady in key end markets.

Detractors were concentrated in parts of the technology and high-multiple growth sectors where investor appetite for long-duration earnings remained subdued. The fund maintained a cautious stance in names exhibiting stretched valuations and accelerated expectations, trimming exposure where risk-reward did not align with the team’s value framework.

Portfolio positioning entering the fourth quarter reflects a continued overweight to value-centric segments that offer attractive free cash flow yields and durable business models. The management team favored companies with strong balance sheets, recurring cash generation and conservative capital allocation policies. Sector tilts emphasize financials, energy and industrials, while the fund remains selectively invested in consumer staples and healthcare where valuations present defensive characteristics.

Risk management remains a priority. The portfolio team continues to stress-test holdings for interest rate sensitivity, earnings resilience and margin durability. Liquidity and diversification considerations guide position sizing, with a focus on downside protection without unduly sacrificing long-term return potential.

Looking ahead, the team sees opportunities where market dislocations create mispriced securities and intends to capitalize on those through disciplined stock selection. While near-term volatility may persist, the fund’s process—rooted in valuation, cash flow analysis and fundamental research—aims to deliver compounding returns over full market cycles.