Allspring International Equity Fund Q4 2024 Commentary

2025-02-21 06:55:00 ET

Summary

• The Allspring International Equity Fund underperformed the benchmark MSCI EAFE Index (Net) for the quarter.
• Stock selection in health care and financials, underweighting in banks, and exposures in France and the U.K. detracted from performance.
• Stock selection within the communication services and energy sectors as well as exposures in Germany and stock selection in Japan contributed to performance.

Market review

In the fourth quarter, global developed market equities, as measured by the MSCI World Index (Net), returned -0.16%. Developed international markets, as measured by the MSCI EAFE Index (Net), returned -8.11%, with performance negatively correlated with the rising U.S. dollar ( USDOLLAR , DXY ). U.S. large-cap equities advanced, as measured by the S&P 500 Index ( SP500 , SPX ), returning 2.41%, as the "Magnificent 7” (Alphabet, Amazon, Apple, Meta, Microsoft, NVIDIA, and Tesla) regained leadership in the quarter. However, the broader U.S. market lost momentum in December, giving up earlier gains amid concerns over government deficits, tariffs, and inflation. Despite this, U.S. markets still outperformed international markets as investors favored growth over more cyclical economies and sectors....

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