Navigating Global Markets: A Deep Dive into Fund Dynamics and Sectorial Influences
Examining the Market Landscape and Investment Outcomes in Q2 2025
During the second quarter of 2025, the global equities market, as measured by the MSCI ACWI, saw an impressive 11.53% increase, with a majority of sectors (nine out of eleven) reporting positive returns. The Information Technology sector emerged as a dominant force, contributing significantly to the benchmark's overall performance with a 23.4% rise, accounting for 560 basis points of the total gain.
Factors Contributing to the Fund's Second Quarter Underperformance
The Goldman Sachs GQG Partners International Opportunities Fund recorded a notable underperformance during the second quarter of 2025. The fund's returns were 499 basis points lower than its benchmark, the MSCI ACWI ex-USA (Net), primarily due to its strategic allocations and stock selection. Specifically, an overexposure to the Energy sector, coupled with less favorable stock choices within it, negatively impacted the fund's relative performance. Furthermore, the fund's stock picking decisions in European markets, excluding the United Kingdom, were identified as the largest drag on its performance.