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In the initial quarter of 2026, the Allspring International Equity Fund demonstrated a robust performance, registering a return of -0.89%, which commendably surpassed the -1.24% observed in its benchmark, the MSCI EAFE Index. This commendable showing was largely attributed to astute stock-picking within the information technology and communication services sectors. However, this positive impact was somewhat tempered by less favorable selections in the industrials and consumer staples sectors. The quarter was also marked by an unexpected geopolitical event involving Iran, which injected considerable uncertainty into global markets, primarily impacting the cost and supply of oil and other essential commodities. Despite these market fluctuations, the fund’s strategic emphasis on enterprises characterized by superior quality, consistent cash flow generation, and operational fortitude enabled it to deliver solid risk-adjusted returns, outperforming many other equity categories.

Allspring International Equity Fund Exceeds Benchmark in Challenging Q1 2026

In the first quarter of 2026, the Allspring International Equity Fund achieved a commendable return of -0.89%, significantly outperforming its benchmark, the MSCI Europe, Australasia, Far East (EAFE) Index, which recorded a return of -1.24%. This notable outperformance was predominantly driven by exceptional stock selection within the information technology and communication services sectors. Conversely, less favorable stock performances in the industrials and consumer staples sectors partially counteracted these gains.

A critical factor influencing market dynamics during this period was an unexpected development in Iran, leading to heightened market uncertainty. This event spurred considerable concerns regarding global oil supply and pricing, as well as the broader commodity markets. Amidst this volatility, certain companies stood out. Notably, Samsung Electronics emerged as a powerful contributor to the fund's positive results. The robust demand for memory chips, fueled by the relentless expansion of data centers and advancements in AI-related technologies, played a pivotal role in Samsung's strong performance.

The Allspring International Equity Fund's strategic approach, centered on identifying and investing in high-quality businesses, characterized by durable cash flows and resilient operational models, proved to be particularly effective in navigating the turbulent market conditions of the quarter. This steadfast focus enabled the fund to not only mitigate potential downside risks but also to generate solid risk-adjusted returns that favorably compared to a wide spectrum of other equity investments.

The first quarter of 2026 underscores the critical importance of diligent fundamental analysis and a disciplined investment philosophy in navigating complex global markets. The Allspring International Equity Fund's success in outperforming its benchmark, despite geopolitical headwinds and sector-specific challenges, highlights the benefits of focusing on robust, high-quality businesses. This period serves as a vivid reminder that, even in an environment of uncertainty, strategic allocation to companies with strong operational foundations and consistent cash flows can yield superior risk-adjusted returns. For investors, the takeaway is clear: resilience and quality are paramount, especially when unforeseen global events disrupt market stability.