Summary

• The Wasatch International Value Fund—Investor Class weathered the volatility well with a gain of 7.27% in the first quarter of 2026, notably outperforming the MSCI World ex USA Value Index.
• The biggest driver of TotalEnergies SE's strong performance was a sharp increase in the price of oil over the quarter, along with wider refining margins driven by tight supply.
• Suncor Energy, Inc. posted earnings and cash flow that exceeded expectations during the quarter, driven in part by a successful initiative to realize operational efficiencies.
• With our focus on Japan Airlines Co. Ltd.'s long-term potential, we used the weakness in its stock price to add to our position.
• In the wake of the U.S.-Iran conflict, we have added exposure in some areas of the market that have been battered, including interest rate-sensitive stocks.

Overview

International equities generally moved higher for much of the first two months of the quarter. However, late February marked a shift in investor sentiment as the launch of the U.S./Israel versus Iran conflict led to a