In the second quarter of the fiscal year, the International Growth Fund - Investor Class delivered an impressive performance, recording a 17.60% return. This significantly surpassed its benchmark, the MSCI AC (All Country) World ex USA Small Cap Index, which saw a return of 9.62% during the same period. This notable outperformance was largely attributed to astute stock-picking within the United Kingdom, Japan, and Germany. The fund's strategic investments in these regions proved to be highly effective, contributing substantially to its overall success.
International Growth Fund Excels in Second Quarter with Strong Returns
The second quarter of the year saw a noteworthy triumph for the International Growth Fund - Investor Class. This investment vehicle reported an exceptional return of 17.60%, substantially eclipsing the 9.62% gain posted by its comparative index, the MSCI AC World ex USA Small Cap Index. The core drivers behind this strong performance were meticulously chosen equities in several key international markets. Specifically, the fund's holdings in companies located in the United Kingdom, Japan, and Germany played a pivotal role in boosting its results. These strategic allocations highlight the fund manager's proficiency in navigating complex global landscapes and identifying high-potential opportunities within the small-cap sector. The fund's management team comprises seasoned professionals, including Ken Applegate, CFA, CMT, serving as the Lead Portfolio Manager with a decade of experience on the fund and twelve years at Wasatch. He is supported by Derrick Tzau, CFA, the Associate Portfolio Manager, who brings six years of fund experience and eight years at Wasatch.
This exemplary performance by the International Growth Fund - Investor Class underscores the critical importance of diligent research and strategic asset allocation in achieving superior investment outcomes. The focused approach on specific geographical markets, coupled with an emphasis on small-cap companies, proved to be a winning formula in the second quarter. Investors may glean valuable insights from this fund's success, particularly regarding the potential for outperformance when active management effectively targets growth opportunities in international markets. This quarter's results serve as a compelling case study for the benefits of expert-driven portfolio construction.
