In the second quarter of 2025, the Thornburg Summit Fund's I share class showcased a robust performance, delivering an 8.15% return, narrowly missing its Blended Index benchmark by a mere 58 basis points. This period was characterized by a significant rebound in global equity markets, which had experienced a tumultuous start to the quarter. The fund's strategic stock selection proved particularly effective within the consumer discretionary and information technology sectors, notably enhancing its relative performance against the MSCI ACWI Index. Looking ahead, the fund managers anticipate that periods of increased market fluctuations could present advantageous entry points for adept active management strategies.
Global equity markets demonstrated considerable strength throughout the second quarter, marking a recovery from earlier instability. This resurgence provided a fertile ground for the fund's investment approach. Specifically, targeted stock picks in the consumer discretionary and information technology segments played a crucial role in shaping the fund's competitive returns. These sectors were identified as key contributors to the positive relative outcomes observed against the established benchmark.
The commentary from Thornburg Investment Management emphasizes a forward-looking perspective, recognizing that market dynamics are subject to change. Neal BasuMullick, CFA, and Lon Erickson, CFA, both Portfolio Managers, foresee that any forthcoming periods of heightened volatility should not be viewed solely as challenges but rather as potential opportunities. For sophisticated active managers, such market conditions can enable them to capitalize on price disparities and reallocate assets strategically, thereby enhancing long-term value for investors. This proactive stance underscores the importance of agile investment strategies in navigating evolving market landscapes.
The Thornburg Summit Fund's recent performance underscores the critical role of strategic asset allocation and astute stock picking in achieving competitive returns. Despite narrowly trailing its benchmark, the fund demonstrated resilience and leveraged specific sector strengths effectively. As markets continue to evolve, the ability of active managers to identify and capitalize on volatility will be paramount for sustained success.