The Nationwide BNY Mellon Dynamic U.S. Core Fund achieved a 2.19% return in the fourth quarter of 2025, underperforming the S&P 500 Index's 2.66% gain. The fund maintained a target allocation of 90% equities, 10% bonds, and no cash during the period. Positive market factors included stronger-than-expected economic growth, interest rate reductions, and robust corporate earnings.
The Nationwide BNY Mellon Dynamic U.S. Core Fund (NMFAX) delivered a 2.19% return for its IS Share Class in Q4 2025, compared to the S&P 500 Index's 2.66% performance. This result came amid favorable conditions for stocks, driven by better-than-expected growth, two interest rate cuts, and solid corporate earnings reports.
The fund's strategy emphasized a defensive equity allocation, with a current target exposure of 90% equities, 10% bonds, and 0% cash. It continued to employ equity call options to enhance convexity, resulting in an average implemented equity exposure of 100.2% over the quarter. This approach aimed to balance risk while capturing upside potential in the market.
Looking ahead, the fund's forecast for S&P 500 earnings-per-share growth over the next 12 months was revised downward slightly to 7.8%. The commentary highlights the fund's focus on dynamic positioning to navigate evolving economic signals, though specific details on bond selections or option strategies were not elaborated in the summary.
Note that while the title references Q4 2025, some summary text mentions Q3; the performance figures align with the quarterly context provided.