Navigating Global Markets: A Q3 Reflection
The Global Market Environment and Its Impact on International Equities
During the third quarter, the global equity landscape was significantly influenced by a depreciating U.S. dollar and expansionary monetary policies enacted by central banks in various European and Asian economies. These factors generally provided a positive impetus for international developed markets. However, the pervasive uncertainty surrounding potential tariffs and their broader implications for global trade flows tempered investor sentiment, creating a complex operating environment.
Wasatch International Opportunities Fund's Performance During Q3 2025
The Wasatch International Opportunities Fund, Investor Class, encountered a challenging period, concluding the quarter with a decline of -8.31%. This performance lagged behind the broader market benchmark, indicating that the fund's investment selections did not capture the upward movements seen in some segments of the international equity markets. The quarter proved to be particularly difficult for the fund, as its investments in both emerging and developed economies exhibited weaker results compared to the benchmark.
Adherence to Investment Philosophy Amidst Underperformance
Despite the disappointing relative performance observed in the third quarter, the management team of the Wasatch International Opportunities Fund reiterates its commitment to its established investment strategy. The fund's approach is rooted in rigorous analysis and a long-term perspective, focusing on identifying high-quality growth companies across global markets. The team emphasizes that short-term fluctuations do not deter their conviction in their fundamental investment process, which is designed to deliver sustainable returns over extended periods.