The International Growth Fund was down -1.1% vs the benchmark (S&P Global LargeMidCap Index, 50% hedged into NZD), which was up +1.5%.  

Meta (+27%) was our top contributor after launching Muse, its personal AI assistant, as investors saw a tangible consumer product supporting Meta’s recent AI investment. Monetisation is still early, but Muse opens a substantial new market beyond Meta's core advertising business. Our semiconductor holdings including TSMC (+10%), ASML (+7%) and Nvidia (+3%) benefited from improved sentiment around broader investment in AI. We remain selective with our investments in AI-related names, focusing on business quality and sustainability of earnings. Several of our healthcare names, including Intuitive Surgical (+8%) and Danaher (+4%) outperformed on improved confidence around end-market growth. 

The common theme for many of our underperformers was the sharp rise in bond yields, with the 30-year US Treasury yield reaching its highest level since 2002. Housing-related names such as Equifax (-27%), which sells credit reports for mortgage lending, were impacted by lower mortgage refinancing volumes and increasing regulatory scrutiny around mortgage costs, while Installed Building Products (-21%) was hit by expectations for fewer new-home builds. Higher rates also weighed on KKR (-17%) as costlier leverage and lower asset valuations hurt deal economics and delay exits. Attractive fixed-income yields could also divert capital from private equity, slowing fundraising and management fee growth.