The Nationwide International Small Cap Fund (IS share class) has reported a strong performance for the first quarter of 2026, significantly outpacing its benchmark index. The fund achieved a return of 1.54% during the period, while the MSCI EAFE® Small Cap Index registered a decline of -1.25%.
Analysis of the fund’s performance indicates that while there were challenges in specific sectors, the overall strategy proved effective. Weak stock selection within the industrials, consumer staples, and utilities sectors was successfully counterbalanced by stronger performance in other areas of the portfolio. This offsetting effect allowed the fund to maintain its upward trajectory and deliver positive returns in a challenging market environment.
The fund’s managers attribute the outperformance to a combination of strategic asset allocation and a keen focus on identifying high-potential small-cap companies outside of North America. Despite headwinds in certain traditionally stable sectors, the fund’s ability to identify and capitalize on emerging opportunities in other industries was a key driver of its success. Further details on the specific holdings and strategic decisions that contributed to this result are expected to be released in subsequent commentary.
