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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Thornburg International Equity Fund 2025 Q1 Investor Letter | Buyside Digest

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Primary Source Intelligence • Q1 2025 Letter Analysis

Thornburg International Equity Fund Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, Thornburg International Equity Fund. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

QTD+9.92%

YTD+9.92%

Annualized+7.96%

Positioning StanceConstructive

GeographyGlobal

Digest Analysis

Quick Take

"Outperforming benchmarks through active positioning across divergent global economies. Strong European stock selection and strategic tariff risk management drove results."

Executive Summary

Thornburg International Equity Fund delivered strong Q1 2025 performance, returning 9.92% versus 5.23% for the MSCI ACWI ex-U.S. Index, driven by active positioning and stock selection across international markets. The managers emphasize that while headlines focus on inflation, recession fears, and tariff tensions, these uncertain conditions create opportunities, particularly in underappreciated international markets. The portfolio benefits from global economic divergence, with the U.S. facing persistent inflation while China plans massive stimulus, Japan exits deflation, and Europe asserts economic independence. Strong stock selection in Germany, Netherlands, and France contributed to outperformance, while the team strategically managed tariff risks by avoiding companies heavily dependent on U.S. exports. The concentrated portfolio focuses on high-quality industrial, financial, and technology stocks with competitive advantages. The managers view volatility as an ally, creating windows for disciplined capital deployment. Their flexible, bottom-up approach combined with macro awareness positions the fund to navigate 2025's unpredictable policy and economic environment while capitalizing on market dislocations.

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Institutional Meta Strategy

Meta Strategy Gauges

Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.

Signal Matrix

Market Conviction

80%

CautiousHigh

High Conviction (80%)

The managers emphasize a 'high-conviction' strategy with active, bottom-up stock selection that generated strong relative outperformance (+469 bps vs MSCI ACWI ex-U.S.).

Growth Outlook

50%

BearishBullish

Neutral (50%)

While acknowledging macro volatility, inflation, and tariff tensions, the managers see 'compelling potential' and strong long-term opportunities in international markets.

Risk Appetite

20%

DefensiveAggressive

Defensive (20%)

Positioning focuses on high-quality, attractively valued companies while intentionally avoiding high tariff risks and maintaining disciplined risk management.

Capital Deployment

60%

De-riskingDeploying

Net Neutral (60%)

The portfolio has been actively capitalizing on select opportunities during turbulence, keeping cash relatively low (7.3%) and maintaining full equity exposure.

Forward Guidance

50%

CautiousExpansionary

Neutral (50%)

The commentary expresses confidence that their repeatable, disciplined process will successfully navigate unpredictable policy and economic volatility in 2025.

Language Signal

70%

BearishBullish

Bullish (70%)

The language is measured, confident, and reassuring, emphasizing a steady hand, active navigation, and a strong track record across market cycles.

Perceived Risk

20%

Low RiskElevated

Low Risk (20%)

The macro environment is characterized as highly volatile, fraught with uncertainty around inflation, recession, trade wars, and shifting global policies.

Opportunity Density

60%

ScarceAbundant

Selective (60%)

The commentary notes multiple attractive opportunities emerging across regions (Japan, France, Germany) and sectors (industrials, financials, IT, utilities, healthcare).

Time Horizon

80%

Short-TermLong-Term

Decade+ (80%)

Strong emphasis is placed on long-term investing, noting that market swings create windows of opportunity for patient, disciplined investors over full economic cycles.