The International Growth Fund was down -2.8%, vs the benchmark (S&P Global LargeMidCap Index, 50% hedged into NZD) which was down -1.9%. Companies that meaningfully influenced portfolio returns were:

Netflix (+21%) and Microsoft (+5%) emerged as relative tariff winners due to their service-based products, which are not impacted by the newly announced tariffs. Both companies also had good quarterly earnings during the month, further supporting their share price strength.

Our medical device names Intuitive Surgical (+4%), Dexcom (+5%), Edwards Lifesciences (+4%) and Boston Scientific (+2%) also benefited from the shift to more defensive investments and tariff winners, was which was proven in earnings reports during the month. Tariff impacts were relatively minimal and underlying demand for medical procedures was better than expected and not impacted by macroeconomic concerns.

Amazon (-3%) and Floor & Décor (-11%) detracted from fund performance given their exposure to tariffs and the flow-on effect of a potentially weaker consumer. Both companies have diverse global supply chains, flexibility to absorb proposed tariff impacts and are in a better position to navigate tariffs than competitors.

Icon (-13%) and its clinical research peers have faced challenges in recent quarters as the large pharma and biotech customers cut research and development spending post COVID and amidst increasing interest rates.

UnitedHealth (-21%) was a defensive haven during the tariff sell-off, outperforming the S&P by 20% at one point. However, a rare earnings miss caused a 30% decline, shaking investors’ confidence in this historically stable business.