In the fourth quarter of 2025, the Columbia International Dividend Income Fund's Institutional Class shares delivered a notable 6.60% return, surpassing its benchmark, the MSCI ACWI ex USA Index (Net), which posted a 5.05% gain over the same period. Despite this outperformance, an in-depth analysis revealed that both the selection of individual stocks and the broader allocation across various economic sectors acted as headwinds, detracting from the fund's potential to further widen its lead against the benchmark.

Global markets, as indicated by the MSCI AC World ex USA Index, sustained their positive momentum throughout the year, with the final quarter contributing significantly to overall gains. Eight out of the eleven sectors represented within the benchmark demonstrated robust performance, underpinning the favorable market environment for international investments. This widespread positive trend created a dynamic backdrop for the fund's operations, influencing its strategic decisions and the outcomes of its investment choices. The impressive returns in international markets underscored a period of sustained investor confidence and economic resilience across various regions outside the United States.

A closer examination of the fund's performance drivers highlighted a mixed impact from its strategic decisions. While the overall return was strong, the specific selection of stocks within sectors, and the overarching allocation to different sectors, did not consistently align with optimal relative performance. This suggests that while the fund benefited from a buoyant international market, there were instances where alternative stock choices or a different sectoral weighting might have yielded even greater comparative advantages over the benchmark. The interplay between market trends and active management decisions remained a critical factor in shaping the fund's quarterly results.

The Columbia International Dividend Income Fund's performance in the fourth quarter of 2025 demonstrates a strong absolute return, exceeding its comparative benchmark. However, a detailed look into its components reveals that certain tactical decisions regarding stock picking and sector distribution served to temper its relative outperformance.