Unlocking Global Value: A Deep Dive into International Equity Performance
Exceptional Fund Performance in the Second Quarter of 2025
During the second quarter of 2025, the Institutional Class shares of the Macquarie International Core Equity Fund achieved a commendable positive total return. This performance notably exceeded its primary benchmark, the MSCI ACWI (All Country World Index) ex USA Index (net), highlighting the fund's strategic success in navigating international markets.
Key Drivers of Investment Gains: Individual Stock Performance
Several individual holdings played a pivotal role in the fund's strong showing. SK Hynix Inc., MercadoLibre Inc., and Heidelberg Materials AG emerged as the top relative performers, significantly contributing to the fund's outperformance against its benchmark. Their robust returns underscored the efficacy of the fund's stock selection within diverse international sectors.
Analyzing Detractors: Companies Weighing Down Returns
Conversely, certain investments acted as headwinds to the fund's overall performance. Banco do Brasil SA, Makita Corp., and Renesas Electronics Corp. were identified as the most significant individual detractors. Understanding the factors behind their underperformance is crucial for future portfolio adjustments and risk management.
Global Market Dynamics: International vs. US Equities
The broader international markets, as measured by the MSCI ACWI (All Country World Index) ex US Index, recorded a 12.3% return, surpassing the 10.9% return of US equities, as represented by the S&P 500® Index. This differential suggests a more favorable environment for international investments during the period, despite a weakening US dollar that typically affects dollar-denominated assets.