In the first quarter of 2026, the Nomura Wealth Builder Fund's Institutional Class shares demonstrated superior performance, surpassing its designated benchmark—a composite of 60% S&P 500® Index and 40% Bloomberg US Aggregate Index. This notable achievement at the portfolio level was primarily attributed to strategic investments in high-quality U.S. and income-generating equities, alongside significant exposure to U.S. large-capitalization value stocks, which collectively outperformed the broader S&P 500 Index. The fund's adherence to its strategic policy weights, emphasizing diversification across various geographical regions and asset categories, played a crucial role in its success during a period marked by shifting market dynamics.
The initial period of 2026 began with a sense of cautious optimism in global markets. However, this sentiment quickly dissipated as geopolitical tensions intensified, leading to widespread market disruptions. Despite these challenges, global markets initially showed positive momentum, which the fund capitalized on through its focused investment strategy. The emphasis on robust domestic equities, particularly those with a track record of quality earnings and dividend payouts, provided a stable foundation. Furthermore, the selection of large-cap value stocks proved advantageous as these segments of the market exhibited resilience and growth, particularly when compared to other market indices.
A core element of the Nomura Wealth Builder Fund's approach is its commitment to broad diversification. By allocating investments across different geographic regions and various asset types, the fund aims to mitigate risks and capture opportunities arising from diverse market conditions. This strategic allocation is designed to ensure the portfolio remains robust and adaptable, capable of navigating periods of both stability and volatility. The outperformance observed in the first quarter of 2026 validates this strategic emphasis on diversification and targeted stock selection.
The fund's superior performance in the first quarter of 2026 highlights the effectiveness of its investment philosophy, particularly its strategic allocation to U.S. quality, income, and large-cap value stocks, which were instrumental in exceeding the benchmark. This result underscores the benefits of a well-diversified portfolio that is carefully constructed to respond to evolving market landscapes and geopolitical factors.
