The International Growth Fund ended the month up +2.6%, compared with our global benchmark which was up +3.1%. Companies that meaningfully influenced portfolio returns were:

Amazon (+9.5%) was a top performer for the month. Amazon plans to introduce an ultra-low-cost section on its eCommerce platform which potentially expands the growth runway and addresses concerns around low-cost competition from competitors like Temu and Shein. Intuitive Surgical (+10.6%) continues to perform well as positive feedback on its next-generation surgical robot, the DV5, has raised prospects of stronger than expected revenue over the next few years.

Dexcom (-5%) struggled during the month as rekindled concerns about the effect of GLP1s on the business impacted the price. We have added to our position due to this weakness. Floor and Décor (-14.9%) was impacted by weakening existing home sales (a key driver of flooring sales) and ongoing high mortgage rates. With US 30-year mortgage rates still hovering around 7%, homeowners don’t want to move house and trigger a refinance to the higher mortgage rate. This has meant existing home sales continue to remain near the lows experienced during the Global Financial Crisis.