Iberian-focused domestic equity funds were among the year's top performers, mirroring the PSI's 29.6% surge and the IBEX 35's extraordinary 49% rally. Funds with high exposure to domestic sectors — notably banks, energy and cyclicals tied to export recovery — tended to outperform broader, more diversified strategies as macro momentum, improving corporate earnings and investor rotation into regional risk drove returns. The standout performance highlights near-term opportunities for investors seeking local equity exposure, while also prompting questions about stretched valuations and the need to rebalance portfolios against risk and diversification objectives.