17 Oct 2025
AI focused thematic investing comes roaring back, but undervalued assets still won the quarter
The third quarter saw the return of Mag 7* leadership, as investors drove capital to the few stocks considered most leveraged to AI.
Uniquely, this quarter’s gains were not solely concentrated in AI-related stocks—diversification remained “in style”. The top-performing asset classes for the third quarter were emerging markets, followed by small-cap stocks, and then the S&P 500® Index. This broader updraft in global equity prices created a favorable backdrop for fundamental and diversified strategies like Frontier, resulting in a strong quarter of performance.
Read more in my October Quarterly Briefing.
Past performance is no guarantee of future returns. An investment in this strategy involves the risk of loss, including principal, as well as the potential for gain. There can be no assurance that any Frontier strategy will achieve its objectives or avoid substantial losses. Before investing consider the investment objectives, fees and expenses. Please see additional disclosures in the “Important Disclosure Information”. Performance shown represents total returns that include income, realized and unrealized gains and losses. The Frontier performance shown above are composites of accounts actually managed by Frontier and are shown gross of an advisory fee, which includes the Frontier and financial advisor investment advisory fees, and net of a max 3% advisory fee. Performance in the Balanced, Moderate Growth and Long-Term Growth strategies includes predecessor performance. Benchmarks shown are Frontier’s custom benchmarks. Benchmark composition can be viewed here:https://frontierasset.com/frontier-benchmark-composition-asset-class-detail/
A description of the advisory fees charged by the advisor and Frontier and other important disclosures can be found in their respective ADV disclosure brochure. Frontier’s ADV Brochure, which includes a description of Frontier’s fees, is available upon request at no charge or may be obtained directly from Frontier’s website at frontierasset.com.