Equity

Small Value SMA

Russell 2000® Value Index
Benchmark name
1/1/2012
Inception date
Special Global Equity Team
Team
$5.4M
Strategy assets
Data as of 3/31/2025
Small Value
SMA overview
Pursuing alpha via CPA-based approaches
The Small Value SMA aims to deliver long-term capital appreciation by investing primarily in small-cap companies by using a disciplined, consistent valuation process that evaluates each stock’s upside reward relative to its downside risk.

Accounting expertise and processes guide decision-making.

Key differentiators

  • Employs rigorous qualitative research and a risk-aware portfolio construction process to allow security selection to determine the portfolio's outcome
  • Seeks to own companies that possess the following three criteria: a durable asset base, flexible balance sheet, and strong and sustainable free cash flow
  • Invests when target company’s price has relatively meaningful upside potential versus downside risk

General facts

Weighted average market cap

$3.93B

(as of 3/31/2025)

Dividend yield

2.30%

(as of 3/31/2025)

Quick resources

Fact Sheet

Q2 Recap and Q3 Outlook

Bryant VanCronkhite, senior portfolio manager and co-head of the Special Global Equity team, discusses an eventful Q2 and what to watch in Q3.

Transcript

Katie Schmidt: Bryant, it was a wild second quarter. With that in mind, what is your biggest takeaway?

Bryant: It was indeed wild and the biggest takeaway is the macro is still in charge. Investors had to deal with tariffs being on and then paused. Dealing with the Fed (Federal Reserve) policy. Is there going to be a cut? Is there not going to be? Immigration policy and the macro drove the narrative for the entire quarter. That typically is reflected through style factor changes. In Q1, when there was fear, beta was the worst-performing factor. In Q2, beta was the best-performing factor. It was almost the only thing that mattered. So, the macro is still in charge is the biggest takeaway for Q1.

Katie: Great. With all of that behind us, what are we watching for as we enter the third quarter?

Bryant: Well, Q3 is the transition. Do companies now transition to more of a micro economic narrative? How are they going to talk to investors about the impact of tariffs? How are they going to deal with the potential slowdown from tariffs or the potential stimulation of the economy through the new reconciliation bill? And so, how are investors going to interpret the comments from companies, and how are they going to lay out future guidance is what we're looking for in Q3. And does the market then transition back to stock selection from style factors?

Katie: OK. As we enter into the second half of the year, what is one unintended but potential risk investors should be thinking about?

Bryant: Well, right now, it seems like most investors think the Fed is going to cut rates. We're pricing in two cuts coming up in the back half of this year. That probably is the base case assumption, assuming inflation stays stable and employment stays where it is. But there's a chance—a decent chance—that the new reconciliation bill proves very stimulative and GDP (gross domestic product) grows. There's a chance that through immigration policy and demand, unemployment levels go down, so labor is strong. And the Fed's in a situation where they have to raise interest rates. I don't think anyone is looking for that. So, it's not my base case, but investors should be more balanced in considering the Fed's next move isn't down but maybe up in interest rates.

Katie: Great. Those are great insights. Thanks, Bryant.

Bryant: It's a pleasure.

Performance

Average annual returns

Average annual returns

(as of 3/31/2025)
1/1/2012
1M
3M
YTD
1Y
3Y
5Y
10Y
Inception
Composite (Pure Gross)
-4.41
-6.06
-6.06
-6.12
2.97
15.90
7.95
10.88
Composite (Net)
-4.65
-6.78
-6.78
-8.93
-0.10
12.48
4.76
7.61
Russell 2000® Value Index
-6.00
-7.74
-7.74
-3.12
0.05
15.31
6.07
-

One-month, three-month and year-to-date returns are not annualized.

Performance is historical and does not guarantee future results. For more information, please refer to the GIPS composite report found in the documents section.

Calendar year

Calendar year

(as of 12/31/2024)
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
Fund
7.19
19.48
-12.76
29.65
2.35
29.71
-12.68
12.40
30.95
-3.34
Benchmark
8.05
14.65
-14.48
28.27
4.63
22.39
-12.86
7.84
31.74
-7.47

Performance is historical and does not guarantee future results. For more information, please refer to the GIPS composite report found in the documents section.


Performance and volatility metrics

Performance and volatility metrics

(as of 3/31/2025)
3 Year 5 Year 10 Year
Alpha 2.63 2.32 2.29
Beta 0.85 0.86 0.88
Downside Market Capture Ratio 88.81 91.26 96.39
Information Ratio 0.51 0.11 0.42
R2 0.96 0.96 0.96
Sharpe Ratio -0.07 0.67 0.32
Standard Deviation 20.41 19.60 19.14
Tracking Error 5.71 5.18 4.46
Upside Market Capture Ratio 84.98 81.51 83.01
Correlation 0.98 0.98 0.98

Composition

Portfolio statistics

Portfolio statistics

(as of 3/31/2025)
SMA Benchmark
Number of holdings 120 1427
Top 10 holdings

Top 10 holdings

(as of 3/31/2025)
Security
SMA
Franklin Electric Co., Inc.
3.26%
Innospec Inc.
3.19%
J & J Snack Foods Corp.
3.15%
UMB Financial Corporation
3.08%
Mueller Industries, Inc.
2.83%
Eagle Materials Inc.
2.49%
Silgan Holdings Inc.
2.24%
Avient Corporation
2.21%
SPDR Bloomberg 1-3 Month T-Bill ETF
2.06%
Stewart Information Services Corporation
2.03%
Top 10 represents 26.55% of total net assets

Largest company weights are based on market value of the representative account and not necessarily held in all client portfolios. The information shown is not intended to be, nor should it be construed to be, a recommendation to buy or sell an individual security. A list of all holdings from the prior one-year period is available upon request.

Sector allocation

Sector allocation

(as of 3/31/2025)
Type
SMA
Benchmark
Other
 0.00% -
Cash & equivalents
 4.14% -
Communication services
 0.43% 3.17%
Consumer discretionary
 3.57% 8.74%
Consumer staples
 10.04% 2.54%
Energy
 5.01% 6.87%
Financials
 22.94% 30.66%
Health care
 4.80% 8.51%
Industrials
 25.16% 12.29%
Information technology
 5.33% 6.03%
Materials
 16.63% 3.93%
Real estate
 1.47% 11.39%
Utilities
 0.49% 5.88%

Sector weighting is based on a representative account within the Allspring Global Investments composite and may have changed since the date specified. Percent total may not add to 100% due to rounding.

Documents

Literature Date
Fact Sheet 3/31/2025 Download
Our team
Meet the investment team

The team follows a fundamental approach of identifying companies with competitive advantages, sustainable free cash flow, and flexible balance sheets, helping deliver long-term capital appreciation.

View Team
James

James Tringas

Co-Head of Special Global Equity
Bryant

Bryant VanCronkhite

Co-Head of Special Global Equity
Contact Us

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Style Risk: Style factor exposure including but not limited to, beta, growth, value, liquidity, etc. can perform differently and shift in and out of favor through a market cycle. Management Risk: Investment decisions, techniques, and analyses implemented by the manager may not lead to expected returns of the team. Market Risk: Securities held by the strategy could decline due to general market conditions or other factors, including those with the issuer of the stock. Smaller Company Securities Risk: Securities of smaller market capitalization companies tend to have more volatility and less liquidity compared to larger companies.

Allspring Managed Account Services (the firm) is a unit within Allspring Global Investments and is responsible for the management and administration of the Allspring Funds Management, LLC, retail separately managed account portfolios (wrap portfolios). Allspring Funds Management acts as a discretionary manager for separately managed accounts ("SMA") and as a non-discretionary model provider in a variety of managed account or wrap fee programs (“MA Programs”) sponsored by third party investment advisers, broker-dealers, or other financial services firms (a “Sponsor”). When acting as non-discretionary model provider, Allspring Funds Management responsibility is limited to providing non-discretionary investment recommendations (in the form of model portfolios) to the Sponsor. The Sponsor may use these recommendations in connection with its management of MA Program accounts. In these “model-based” programs, the Sponsor serves as the investment manager and maintains trade implementation responsibility.