In the third quarter of 2025, the Macquarie International Core Equity Fund, through its Institutional Class shares, delivered a positive return for investors. However, this performance did not keep pace with its comparative benchmark, the MSCI ACWI ex USA Index (net). A key factor contributing to this disparity was the challenging environment for stock selection, where certain portfolio holdings struggled, while several high-performing stocks not included in the fund's portfolio experienced significant gains.
Macquarie International Core Equity Fund: Q3 2025 Performance and Future Outlook
During the third quarter of 2025, the Macquarie International Core Equity Fund's Institutional Class shares recorded a commendable positive total return. Despite this positive movement, the fund's performance trailed its designated benchmark, the MSCI ACWI ex USA Index (net). This divergence was largely attributed to the complex landscape of stock picking encountered throughout the quarter. Specifically, a number of stocks held within the fund's portfolio did not perform as anticipated, while various high-growth equities, not part of the fund's holdings, saw substantial upward momentum, further highlighting the challenges in achieving benchmark alignment.
The broader international markets, as gauged by the MSCI ACWI ex USA Index (net), registered a 6.9% return for the quarter. In contrast, US equities, epitomized by the S&P 500 Index, recorded a more robust 8.1% return. Following a strong first half of 2025, European market performance demonstrated a nuanced trend.
Looking ahead, the fund management expresses a confident and optimistic view regarding the trajectory of international markets. They firmly believe that these markets present a compelling investment opportunity. There is a strong conviction that international markets hold a genuine potential to bridge the performance gap with their US counterparts over the next few years, signaling a prospective period of significant growth and convergence.
This performance report highlights the inherent complexities and dynamic nature of global financial markets. It underscores the importance of strategic stock selection and the continuous assessment of market trends. While the past quarter presented specific hurdles, the forward-looking perspective remains bright, emphasizing the long-term potential embedded within international equities. Investors should consider these factors carefully, acknowledging both the recent challenges and the promising outlook for global diversification.
