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International equity markets experienced a significant upswing in the third quarter of 2025, driven by a combination of factors. The MSCI EAFE Index, a key benchmark for international stocks, recorded a 4.77% increase. This positive performance is largely attributed to a reduction in global trade friction, strong corporate financial results, and a general surge in investor confidence, particularly influenced by prevailing interest rates.

Amidst this market expansion, the Victory RS International Fund demonstrated a solid performance, achieving a 2.66% return (for Class A Shares without a sales charge) over the same period. However, with current equity valuations surpassing their historical averages, there is a divergence of expert opinions regarding the market's immediate future. Some anticipate a potential market correction, while others foresee continued growth.

In light of these mixed forecasts, the emphasis shifts from attempting to predict market timing to a more fundamental approach. For investors and fund managers, the sustainable path to generating superior returns lies in meticulous stock selection. This strategy prioritizes identifying and investing in strong individual companies, thereby mitigating risks associated with broader market fluctuations and focusing on long-term value creation.

This steadfast focus on fundamental analysis and diligent stock picking not only offers a more reliable route to achieving investment goals but also encourages a disciplined approach to market participation. It underscores the belief that a well-researched and carefully constructed portfolio, rather than speculative market timing, is the cornerstone of lasting financial success and resilience.