Allspring International Equity: Q4 2025 Top Performers & Laggards

James Sterling February 16, 2026 3 min read

Fund Performance Overview

The Allspring International Equity Fund delivered impressive results in the fourth quarter of 2025, surpassing its benchmark, the MSCI EAFE Index (net), which posted a return of +4.8%. This strong performance capped off an exceptional year for the EAFE markets, highlighting the fund’s ability to navigate international equities effectively during a period of notable market dynamics.

Throughout the quarter, the U.S. dollar maintained relative stability against a basket of major global currencies. This came after a sharp depreciation in the first half of 2025, which had been fueled by heightened economic uncertainty stemming from evolving trade policies worldwide. The steadier currency environment provided a more predictable backdrop for international investments.

At the core of the fund’s strategy is a meticulous bottom-up investment approach that emphasizes individual company analysis. This methodology consistently positions stock selection as the key factor driving the fund’s performance relative to its benchmark, allowing the portfolio managers to capitalize on undervalued opportunities across various sectors and regions.

The insights shared here are drawn directly from the comprehensive Allspring International Equity Fund Q4 2025 Commentary, offering a detailed look into the factors that influenced the fund’s outcomes during this period.

Key Contributors to Performance

Several standout holdings played a pivotal role in boosting the fund’s returns in the fourth quarter. Among the top performers were leading companies in technology, financial services, and luxury goods sectors, whose strong operational results and market positioning translated into significant gains for the portfolio.

Samsung Electronics Co., Ltd. emerged as a major positive contributor, driven by robust demand in the semiconductor space, particularly related to artificial intelligence applications. The company’s advancements in high-bandwidth memory and strategic collaborations have positioned it favorably amid industry growth trends.
Barclays plc also made a substantial positive impact, benefiting from improved trading conditions in financial markets, higher interest rates supporting banking profitability, and effective cost management initiatives that enhanced overall earnings.
LVMH Moet Hennessy Louis Vuitton SE contributed positively through resilient luxury demand, innovative product launches, and a recovery in key markets like Asia, which helped offset softer areas and sustain revenue growth momentum.

Main Detractors from Performance

Despite the overall success, certain positions weighed on the fund’s relative performance. These detractors were primarily in sectors facing temporary headwinds, such as logistics and industrial conglomerates, where macroeconomic pressures and company-specific challenges led to underperformance against the benchmark.

Deutsche Post AG, operating under the DHL brand, detracted due to ongoing supply chain disruptions, inflationary cost pressures in transportation, and softer parcel volumes in certain regions, which pressured margins despite efforts to optimize operations.
Hitachi, Ltd. also lagged, impacted by delays in project executions within its energy and infrastructure divisions, coupled with currency fluctuations that affected reported earnings from overseas activities.
adidas AG faced headwinds from excess inventory buildup, cautious consumer spending in sportswear, and competitive dynamics, though the company is actively addressing these through strategic inventory management and targeted marketing campaigns.

Strategic Insights and Outlook

The fund’s outperformance in Q4 2025 was largely attributed to astute stock picks within the information technology sector—exemplified by Samsung Electronics—and the consumer discretionary space. Geographic allocations also played a supportive role, with overweight positions in high-growth regions proving beneficial amid divergent global economic recoveries.

Looking ahead, Samsung Electronics appears well-positioned for continued expansion, fueled by escalating AI-driven demand for chips, key partnerships like those with NVIDIA, and strengthening memory chip prices. However, potential hurdles such as supply chain bottlenecks and operational execution risks warrant close monitoring.

For LVMH, upcoming growth prospects are closely tied to the pace of consumer spending recovery in China and the reception of fresh product collections. Meanwhile, adidas grapples with normalizing inventory levels but maintains competitive edges through its enduring global brand equity and opportunities from major sporting events that could drive demand.

This detailed attribution analysis underscores the effectiveness of the fund’s disciplined, research-intensive process in identifying winners and managing risks in the volatile international equity landscape. Investors can take confidence in the team’s ability to deliver alpha through fundamental-driven decisions over the long term.