Navigating Global Markets: A Blueprint for Growth and Resilience
Overview of International Equity Performance and Market Volatility
Global stock markets demonstrated significant upward momentum by the close of the quarter, even after an initial downturn. This volatility was primarily triggered by the announcement of higher-than-expected tariff rates, which subsequently stabilized as economic leaders indicated a more flexible approach to trade policies.
The Wasatch International Growth Fund's Stellar Performance in Q2 2025
The second quarter of 2025 saw the Wasatch International Growth Fund's Investor Class achieve a remarkable 22.57% increase, surpassing its benchmark, the MSCI AC World ex USA Small Cap Index, which rose by 16.93%. This notable outperformance underscores the fund's effective investment strategies.
Geographical Contributions to Fund Success: Japan and Australia Leading the Way
A significant portion of the fund's relative success stemmed from its astute stock selections in key geographical regions. Investments in both Japan and Australia proved particularly beneficial, showcasing the strength of the fund's regional analysis and precise market timing.
Sectoral Strengths: Consumer Discretionary and Industrials Drive Growth
From a sector-specific viewpoint, the fund's strategic allocations within the consumer discretionary and industrials sectors were instrumental in driving its outperformance. These sectors provided the largest positive contributions, reflecting strong underlying fundamentals and effective stock-picking in these areas.