| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 9.37% | 22.82% | 27.61% |
The Allspring Emerging Markets Equity Advantage Fund returned 22.82% in Q2 2026, underperforming the MSCI Emerging Markets Index which gained 24.05%. The quarter was characterized by strong performance in Taiwan (up 48.86%) and Korea (up 87.58%), driven by AI-related semiconductor opportunities, while China/Hong Kong declined 6.63% on soft domestic demand. Key contributors included MediaTek and ASE Technology, both benefiting from ramping AI ASIC and advanced packaging businesses with expanding margins. SK Hynix detracted as the fund maintained an underweight position despite strong memory demand. The managers remain constructive on emerging markets for the second half, citing improved political visibility, policy flexibility, and an economic growth premium versus developed markets. Leading companies have driven 40% earnings upgrades year-to-date. The fund's strategy focuses on quality dividend-paying companies with robust shareholder yields, providing a resilient framework to capture long-term opportunities in AI-driven technology growth and rising shareholder returns while navigating near-term volatility from geopolitical risks and market concentration.
The fund seeks long-term capital appreciation and current income by investing in dividend-paying emerging market equity securities with a focus on quality companies offering robust shareholder yields, positioned to benefit from AI-driven technology growth, particularly in Taiwan's semiconductor supply chain, while maintaining a resilient framework to navigate volatility through improved emerging market fundamentals and governance.
The managers remain constructive on emerging markets for the second half of 2026, citing improved political visibility, policy flexibility, and an economic growth premium versus developed markets. They believe emerging markets are better positioned to withstand shocks given solid macroeconomic fundamentals, stronger fiscal health, and meaningfully improved governance. Key competitive advantages include strength in advanced manufacturing and exports, particularly in the tech AI supply chain, as well as rich natural resources. The fund expects continued high earnings growth with upward revisions in the IT sector and rising buybacks and dividends to drive returns. The strategy will continue focusing on quality companies with robust shareholder yields as a resilient framework for long-term emerging markets investing.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 27 2026 | 2026 Q2 | 000660 KS, 005930 KS, 2454.TW, 3711.TW, VIVT3.SA | AI, Asia, dividends, emerging markets, Memory, semiconductors, Taiwan, technology | - | The fund returned 22.82% in Q2 2026, slightly trailing the benchmark's 24.05% gain. Taiwan and Korea surged on AI semiconductor momentum, with MediaTek and ASE Technology leading gains from ramping AI chipset and packaging businesses. China declined on soft domestic demand. Managers remain constructive on emerging markets given improved fundamentals, 40% earnings upgrades, and AI-driven technology growth, focusing on quality dividend payers with robust shareholder yields. |
| Apr 28 2026 | 2026 Q1 | NVDA | AI, China, emerging markets, energy, Geopolitical, Korea, oil, Taiwan | - | Emerging markets face oil shock differentiation with energy exporters outperforming importers. China well-positioned with strategic reserves and innovation focus. AI valuations due for healthy correction after Taiwan/Korea surge. India vulnerable to energy import dependence. Brazil overweight with policy support. Volatility persists if Middle East conflict extends. |
| Oct 19 2025 | 2025 Q3 | 005490.KS, 005930.KS, 051600.KS, 0700.HK, 0939.HK, 2317.TW, 2454.TW, 300750.SZ, 3711.TW, BABA, DLF.NS, EMBASSYOFC.NS, FRESNILLO.L, GFI, NUVAMA.NS, SHRIRAMFIN.NS, TSM | AI, China, Electric Vehicles, emerging markets, India, semiconductors, Taiwan, technology |
BABA US 005930 KS 300750 CH |
Fund outperformed in Q3 2025 driven by strong technology sector performance, particularly AI-related themes in Taiwan and Korea. Samsung Electronics and Alibaba were key contributors on memory demand strength and e-commerce/AI growth prospects. Managers remain constructive on emerging markets citing improved political visibility, accommodative policies, and attractive valuations despite Trump policy headwinds. |
| Aug 4 2025 | 2025 Q2 | 005490.KS, 005930.KS, 028050.KS, 0700.HK, 0939.HK, 2317.TW, 2454.TW, 300750.SZ, 3711.TW, BABA, DLF.NS, EMBASSYOFC.NS, FRES.L, GFI, NUVAMA.NS, SHRIRAMFIN.NS, TSM | AI, China, emerging markets, Energy Storage, India, semiconductors, Taiwan, technology |
2330.TW 005930.KS BABA 300750.SZ DLF.NS |
Fund outperformed in Q3 2025 driven by strong technology stock selection, particularly in AI-related names like Samsung Electronics and Alibaba Group. Managers remain constructive on emerging markets citing improved political visibility, accommodative policies, and favorable growth premium. AI theme dominates Taiwan and Korea performance while China benefits from policy support despite economic headwinds. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
AIAI is driving significant business opportunities across the portfolio, particularly in Taiwan's semiconductor supply chain. MediaTek is ramping up its AI ASIC chipset business with Google, revising sales targets from $1 billion to $2 billion in 2026 and expecting multi-billion dollar sales in 2027. ASE Technology is benefiting from advanced packaging AI business opportunities with improving gross margins as AI packaging business scales up. |
ASIC Chipsets Packaging Supply Chain |
Semiconductor CycleMemory chip demand remains stronger than expected with persistent supply tightness. SK Hynix is experiencing strong earnings through 2027 driven by dynamic random access memory and NAND flash memory demand. The company enhanced shareholder returns with increased dividends and treasury share cancellations. Taiwan's technology supply chain experienced volatility from profit-taking after strong gains and rising cost pressures. |
Memory DRAM NAND Supply | |
DividendsThe fund's strategy focuses on quality companies with robust shareholder yields as a resilient framework for emerging markets investing. SK Hynix increased its dividend from KRW 2,200 to KRW 3,000 per share as part of an enhanced shareholder return policy. Leading emerging market companies are driving rising buybacks and dividends to drive returns, with almost 40% earnings upgrades from the beginning of the year. |
Shareholder Yield Buybacks Returns | |
TaiwanTaiwan equities advanced 48.86% in the quarter, driven by technology supply chain strength despite market volatility from profit-taking and cost pressures. Stock selection in Taiwan aided relative performance. MediaTek and ASE Technology were top contributors, benefiting from AI business opportunities. Taiwan Semiconductor Manufacturing represents the largest portfolio position at 9.31% of net assets. |
Technology Semiconductors Supply Chain | |
South KoreaThe Korean stock market advanced 87.58% in the quarter but has become increasingly concentrated in memory-related names and a handful of other stocks. Given the sharp pace of the recent rally, near-term correction appears warranted. Stock selection in Korea impeded relative returns. Samsung Electronics and SK Hynix represent significant portfolio positions at 7.74% and 7.62% respectively. |
Memory Concentration Valuation | |
ChinaChina/Hong Kong markets declined 6.63% in the quarter. China's economy showed modest improvement in June with manufacturing PMIs returning to expansion territory, supported by high-tech manufacturing and exports. However, domestic demand remained relatively soft due to lingering property-market weakness and cautious consumer spending. Stock selection in China/Hong Kong impeded relative returns. |
Property Consumption Manufacturing | |
IndiaIndia's market advanced 10.07% in the quarter. The Reserve Bank of India maintained policy rates at 5.25% as inflation forecasts stay within target range. First quarter GDP growth of 7.8% was above estimates. Stock selection in India aided relative performance, demonstrating the country's strong economic momentum. |
GDP Rates Growth | |
| 2026 Q1 |
OilMiddle East conflict disrupted oil supply through Strait of Hormuz closure, causing oil prices to surge and creating stagflation fears. Oil importing emerging markets, particularly in Asia, are vulnerable to this shock. The manager expects volatility to persist if war extends. |
Oil Energy Middle East Stagflation Supply |
ChinaChina is well-positioned to weather the energy shock due to strategic reserves, high crude inventory, coal reserves, renewables focus, and alternative Russian supply. The manager remains constructive on China's innovation and technological advancement, viewing it as a rational economic powerhouse. |
China Innovation Technology Reserves Geopolitical | |
AIAI themes including server infrastructure, edge AI, agentic AI, and physical AI drive Taiwan and Korea markets with nearly $700 billion in capex. However, the manager believes some correction in AI valuations would be healthy, noting potential demand destruction from prolonged conflict. |
AI Infrastructure Taiwan Korea Capex | |
SemiconductorsStrong memory prices on supply constraints propelled Taiwan and Korea to new highs. However, performance may reverse due to demand destruction from war, delayed rate cuts, and new technology processes reducing legacy product demand. Qatar's helium supply disruption affects foundry chipmaking. |
Semiconductors Memory Taiwan Korea Supply | |
IndiaIndia faces headwinds from high crude oil and natural gas import dependence amid Middle East conflict. Higher energy prices will soften growth outlook through inflation and lower output, particularly in fertilizers. Premium valuations remain concerning given AI threats to IT services. |
India Energy Imports Valuations Growth | |
BrazilBrazil implemented diesel subsidies funded by temporary crude export tax to address energy crisis. The manager maintains overweight positioning while taking profits in interest rate sensitive names. Rate cut cycle may be more muted due to Iran conflict. |
Brazil Subsidies Rates Energy Policy | |
| 2025 Q3 |
AIAI theme dominates technology-heavy Taiwan and Korea equity market performance. Growing AI adoption globally and global data centre vendors' comments on stronger capital expenditures outlook drive positive sentiment. Oracle revised up its fiscal-year 2026 capex plan by 40% to US$35 billion and signed a contract with Oracle to purchase US$300 billion in computing power over the next five years. |
Artificial Intelligence Data Centers Capex Technology Infrastructure |
ChinaChina/Hong Kong outperformed the benchmark (20.70%) in the third quarter due to robust inflows from retail investors and optimism around technology and AI sectors. The broader economy remained soft with persistent deflationary pressures, weak domestic demand and ongoing property sector challenges limiting economic growth. Managers remain constructive on China on improved US-China relations in addition to sustained policy support and technological advancement. |
China Hong Kong Technology Policy Support US-China Relations | |
SemiconductorsSamsung Electronics was a top contributor as a leading memory chip and consumer electronics conglomerate, outperforming due to its narrowing technology gap in high bandwidth memory versus peers and stronger-than-expected demand for commodity dynamic random access memory and NAND flash memory. Expected to deliver significant margin expansion in coming quarters. |
Memory NAND DRAM Technology Gap Margin Expansion | |
Electric VehiclesContemporary Amperex Technology Co. as the world's largest electric vehicle battery and energy storage system producer outperformed the benchmark, supported by resilient EV battery demand and stronger-than-expected ESS growth in China and abroad. Recent policy support on ESS from Beijing has lifted earnings expectations. |
EV Batteries Energy Storage Policy Support Beijing ESS | |
E-commerceAlibaba Group, the leading e-commerce company and AI/cloud service provider in China, performed well due to the market's increasing confidence on Alibaba's mid-to long-term earnings growth outlook thanks to streamlined operations and clear strategies to focus on two growth areas (e-commerce/quick commerce and AI/cloud service) in the next decade. |
E-commerce Quick Commerce Cloud Service Streamlined Operations Growth Strategy | |
| 2025 Q2 |
AIAI theme dominates technology-heavy Taiwan and Korea equity market performance. Growing AI adoption globally and global data centre vendors' comments on stronger capital expenditures outlook drive positive sentiment. Oracle revised up its fiscal-year 2026 capex plan by 40% to US$35 billion and signed a contract with Oracle to purchase US$300 billion in computing power over the next five years. |
Artificial Intelligence Data Centers Capex Technology Infrastructure |
ChinaChina/Hong Kong outperformed the benchmark (20.70%) in the third quarter due to robust inflows from retail investors and optimism around technology and AI sectors. The broader economy remained soft, with persistent deflationary pressures, weak domestic demand and ongoing property sector challenges limiting economic growth. Managers remain constructive on China on improved US-China relations in addition to sustained policy support and technological advancement. |
China Hong Kong Technology Policy Support US-China Relations | |
SemiconductorsSamsung Electronics was a top contributor as a leading memory chip and consumer electronics conglomerate, outperforming due to its narrowing technology gap in high bandwidth memory versus peers and stronger-than-expected demand for commodity dynamic random access memory and NAND flash memory. Expected to deliver significant margin expansion in coming quarters. |
Memory Semiconductors Technology Margins Demand | |
Energy StorageContemporary Amperex Technology Co. as the world's largest electric vehicle battery and energy storage system producer outperformed, supported by resilient EV battery demand and stronger-than-expected ESS growth in China and abroad. Recent policy support on ESS from Beijing has lifted earnings expectations, whilst global AI infrastructure investment is expected to accelerate ESS deployments. |
Batteries Energy Storage Electric Vehicles Policy Support Infrastructure | |
E-commerceAlibaba Group, the leading e-commerce company and AI/cloud service provider in China, performed well due to the market's increasing confidence on Alibaba's mid-to long-term earnings growth outlook thanks to streamlined operations and clear strategies to focus on two growth areas (e-commerce/quick commerce and AI/cloud service) in the next decade. |
E-commerce Cloud Services Quick Commerce Growth Strategy China |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Oct 19, 2025 | Fund Letters | Alison Shimada | BABA US | Alibaba Group Holding Ltd. | Consumer Discretionary | Internet & Direct Marketing Retail | Bull | NYSE | AI, buybacks, China, cloud, e-commerce, growth, Margins, Monetisation, valuation | Login |
| Oct 19, 2025 | Fund Letters | Alison Shimada | 005930 KS | Samsung Electronics Co., Ltd. | Information Technology | Semiconductors & Semiconductor Equipment | Bull | NYSE | AI, DRAM, Foundry, HBM, Margins, Nand, semiconductors, Utilization, valuation | Login |
| Oct 19, 2025 | Fund Letters | Alison Shimada | 300750 CH | Contemporary Amperex Technology Co. Ltd. | Industrials | Electrical Components & Equipment | Bull | Shenzhen Stock Exchange | Batteries, Chemistry, Ess, EV, expansion, Integration, Margins, Storage, Subsidies | Login |
| Sep 30, 2025 | Fund Letters | Allspring Emerging Markets Equity Advantage Fund | 2330.TW | Taiwan Semiconductor Manufacturing Co., Ltd. | Information Technology | Semiconductors & Semiconductor Equipment | Bull | Taiwan Stock Exchange | AI infrastructure, capital expenditure, data centers, Foundry, semiconductors, Taiwan, technology | Login |
| Sep 30, 2025 | Fund Letters | Allspring Emerging Markets Equity Advantage Fund | 005930.KS | Samsung Electronics Co., Ltd. | Information Technology | Technology Hardware, Storage & Peripherals | Bull | Korea Exchange | AI infrastructure, consumer electronics, DRAM, High-Bandwidth Memory, memory semiconductors, NAND flash, South Korea | Login |
| Sep 30, 2025 | Fund Letters | Allspring Emerging Markets Equity Advantage Fund | BABA | Alibaba Group Holding Limited | Consumer Discretionary | Internet & Direct Marketing Retail | Bull | New York Stock Exchange | AI, China, cloud services, Consumer Internet, Digital transformation, e-commerce, quick commerce | Login |
| Sep 30, 2025 | Fund Letters | Allspring Emerging Markets Equity Advantage Fund | 300750.SZ | Contemporary Amperex Technology Co. | Information Technology | Electrical Equipment | Bull | Shenzhen Stock Exchange | AI infrastructure, China, clean energy, Electric Vehicle Batteries, Energy Storage Systems, Grid Storage, Lithium-ion | Login |
| Sep 30, 2025 | Fund Letters | Allspring Emerging Markets Equity Advantage Fund | DLF.NS | DLF Ltd. | Real Estate | Real Estate Management & Development | Bull | National Stock Exchange of India | Commercial, India, National Capital Region, Pre-sales, real estate development, rental income, Residential | Login |
| TICKER | COMMENTARY |
|---|---|
| 2454.TW | MediaTek, the leading integrated circuit design player in Taiwan, performed strongly in the second quarter due to the company's strong executions to ramp up its new artificial intelligence (AI) application-specific integrated circuit (ASIC) chipset business and better demand outlook from its key AI customer Google. MediaTek revised up its AI ASIC business sales growth target to US$2 billion in 2026 (up from a previous US$1 billion), and the company expects its AI ASIC business sales will further increase to multi billions in 2027. We believe the new AI ASIC business provides an attractive new total addressable market for MediaTek in the mid to long term, and the ramp up of new business should help it expand operating margin due to the better operation leverage for this big-scale project. |
| 3711.TW | ASE Technology, the largest outsourced semiconductor assembly and testing player globally, outperformed the benchmark in the second quarter due to new advanced packaging AI business opportunities and solid gross margin (GM) trend as the new AI business ramps up. ASE's first quarter 2026 GM increased by 330 basis points (bps; 100 bps equal 1.00%) year over year to 20.1%. We expect the company's GM will further improve in the upcoming quarters thanks to the growing mix from a higher GM AI packaging business and ASE's strong execution to ramp up the yield of new business. |
| 000660.KS | The world's second-largest memory chip producer, SK Hynix, was a detractor in the second quarter, as we maintained an underweight position. The company only recently met our yield requirement following the announcement of an enhanced shareholder return policy in late January 2026. The policy included the cancellation of 2.1% of Treasury shares, an increase in the dividend from Korean won (KRW) 2,200 to KRW 3,000 per share. With stronger-than-expected dynamic random access memory and NAND flash memory demand and persistent supply tightness, we expect earnings to remain strong through 2027. |
| VIVT3.SA | Telefonica Brasil, a leading telecom operator, performed poorly because of a shortfall in earnings in its first quarter results, leading to downward revisions. We believe expectations on the pace of asset sales, namely copper assets, were not realistic. The company is making progress towards its goal. |
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