The Allspring SMID Cap Growth Fund underperformed the Russell 2500 Growth Index benchmark during the first quarter that ended March 31, 2026.
The outbreak of war in Iran quickly unwound prewar optimism, causing many cyclical sectors to sell off as oil prices spiked and risk appetites deteriorated.
The AI 'doomerism' trade flared as investors reassessed whether fast-improving and increasingly autonomous agentic AI can erode the moats of software, data, and white-collar services.
Carpenter Technology Corporation remains well positioned to deliver strong performance through pricing, mix, and sustained aerospace demand, benefiting from increased production rates at Boeing.
The portfolio management team added to the MongoDB, Inc. position in the quarter as the stock reached an attractive risk/reward profile.
Getty Images
Quarterly review
• The fund underperformed the Russell 2500 Growth Index benchmark during the first quarter that ended March 31, 2026.
• Security selection within the health care and information technology (IT) sectors detracted from returns.
