Allspring Global Investments: Navigating Market Shifts with Small-Cap Value Fund
Allspring Global Investments' Small-Cap Value Fund experienced underperformance against its benchmark this quarter. The market's shift towards speculative, growth-oriented small-cap stocks, including non-profitable and micro-cap companies, presented challenges for the fund's strategy focused on strong fundamentals. The firm anticipates a market correction, expecting a return to quality factors as the recovery progresses into its next phase.