The International Growth Fund rose +1.9%, underperforming the benchmark gain of +3.3%. 

Japan outperformed global markets in October, aided by yen depreciation and improved sentiment from late-month U.S.–China trade talks that signalled a potential one-year tariff pause. In contrast, the U.S. market was broadly flat as early-month trade tensions triggered volatility before rebounding on strong earnings, with 82% of S&P 500 companies beating expectations. The Federal Reserve cut rates by 0.25% to 3.75–4.0% amid slowing job growth and moderating inflation, while signalling a lower likelihood of another cut in December. 

Intuitive Surgical (+20%) was up after solid earnings results eased concerns around hospital spending and procedure growth. The company shipped 427 new robotic systems, the second largest quarter in recent years, including 230 placements of the new DV5 system, the update to the workhorse Xi system launched in 2015. Procedure growth also accelerated to nearly 800,000 procedures. Robotic surgery is increasingly becoming the standard of care, and with millions of addressable procedures globally, there is a long runway for continued procedure growth.   

Amazon (+11%) and Google (+16%) both delivered strong quarters driven by accelerating cloud and AI momentum. Amazon’s AWS growth re-accelerated to 20% as new data centre capacity came online, while its advertising business rose 24% on partnerships with Spotify and Netflix. The company continues to invest heavily in AI infrastructure, lifting 2025 capex guidance from $118b to $125b, with further increases expected in 2026. Google’s advertising revenue in Search and YouTube grew 15% as AI features like AI Mode and AI Overviews boosted engagement. Meanwhile, Google Cloud surged 35% with expanding margins and an 82% jump in backlog to $155b, reflecting robust enterprise demand for AI offerings. 

Floor & Decor (-15%) declined in the month leading up to its third quarter earnings report. U.S. 30-year mortgage rates remained stubbornly above 6%, keeping existing-home sales (a key driver of flooring demand) near two-year lows and weighing on big-ticket remodelling demand. Despite this backdrop, market share gains from smaller competitors exiting the market position Floor & Decor for outsized gains when housing sales recover.  

Dexcom (-14%) sold off as its initial guidance for revenue growth in 2026 was below expectations, as well as small headwinds from safety and reliability concerns for its G7 sensor. Despite the disappointing guidance, management has seemingly taken a conservative stance. Any future reimbursement coverage not currently available is excluded, even though coverage for the large Type 2 population is in its early stages. The company believes the quality issues have now mostly resolved and that the complaint rates for G7 have been largely stable.