The International Growth Fund returned +1.2% in July, 2.7% ahead of the benchmark index, which returned -1.5%.

Microsoft (+20%) and Amazon (+10%) were strong contributors to the fund in July following positive updates in their latest quarterly results. Microsoft’s Azure cloud business is seeing faster revenue growth, supported by rising enterprise adoption of AI. Its core software suite, Office 365, is also benefiting from AI integration, helping sustain robust revenue growth that is expected to improve further over the coming year. Similarly, Amazon’s cloud business, AWS, is benefiting from increased AI adoption and reported accelerating revenue growth in its July quarterly update. Amazon’s eCommerce business continues to grow well as the company strengthens its consumer offering with a broader product range, including groceries and pharmaceuticals, and delivery times as short as 30 minutes.

ASML (-20%) and TSMC (-18%) were caught in a broader semiconductor sell-off following the recent AI-driven rally, as investors became more focused on near-term risks. For TSMC, concerns centred on elevated capital expenditure and potential margin pressure associated with its 2nm ramp, while ASML sentiment was weighed down by worries over intensifying Chinese competition. However, both companies delivered better-than-expected earnings, with TSMC’s profit increasing 77.4% year-on-year to a record $22 billion, and both management teams continued to express confidence in the durability of AI-driven demand for advanced semiconductor chips and chip-making equipment.