SHTDF - Allspring Emerging Markets Equity Income Fund Q4 2024 Commentary

2025-02-20 11:45:00 ET

Summary

• The Allspring Emerging Markets Equity Income Fund outperformed the MSCI Emerging Markets (EM) Index (Net) for the quarter that ended December 31, 2024.
• At the sector level, stocks within the materials, energy, and industrials sectors served as relative contributors, while stocks within the financials, information technology (IT), and utilities sectors hindered relative performance.
• At the country level, stock selection in India, Korea, and Brazil aided relative performance while stocks within China/Hong Kong, South Africa, and Thailand impeded relative returns.

Market review

Emerging market equities, as measured by the MSCI EM Index (Net), declined 8.01% in the fourth quarter, in large part due to a market correction of sorts taking place after a stellar third quarter of performance within the Asia Pacific region. China/Hong Kong markets experienced this sell-off beginning in October after a significant rise in late September following the announcement of a larger-than-expected stimulus package. Despite press conferences from the National Development and Reform Commission and the Ministry of Finance, the market was left yearning for more concrete details around additional fiscal stimulus. In November, markets declined further due to muted economic activity and concerns over a potential additional 10% tariff on U.S. exports, which weighed on investor sentiment....

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