International Growth Fund

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    * S&P Global LargeMidCap Index (50% hedged into NZD)

    Fund performance figures are after deductions for charges but before tax. Please note that past performance is not necessarily indicative of future returns. Returns can be positive or negative, and returns over different time periods may vary. No returns are promised or guaranteed.

    Fund highlights

    October 2023

    The International Growth Fund was down -0.6%, vs the benchmark (S&P Global LargeMidCap Index, 50% hedged into NZD) which was down -1.2%.  Companies that meaningfully influenced portfolio returns were:

    Amazon (+5%) reported better than expected Q3 earnings at the end of October. Amazon’s important cloud computing platform, AWS, reported stabilised revenue growth at 12%, in-line with last quarter. AWS has had headwinds to growth for the last year as customers optimise their cloud spend after a period of accelerated spend during the pandemic. CEO Andy Jassy made strong commentary during the call that optimisation headwinds are “meaningfully attenuating” which is pleasing to hear.

    Microsoft (+7%) had a strong earnings report in October where the company outperformed expectations on revenue and earnings. Azure, Microsoft’s cloud computing platform, surprised by reaccelerating revenue growth in the quarter to 28% vs. 27% in the previous quarter. Azure has been facing similar optimisation headwinds to AWS and echoed comments on easing optimisation headwinds. AI is scaling quickly for Microsoft and contributed three percentage points to the growth of Azure in the quarter, compared to only one percentage point a couple of quarters ago.

    Danaher (-13%) fell alongside the wider industry, with the S&P Lifesciences Tool and Services index also down 12%. The industry continues to face the perfect storm of i) lower COVID revenues as vaccine and diagnostic testing volumes decline; ii) customer destocking as customers works down safety stocks built up during the pandemic; iii) weakness in biotech customer spend given the tougher funding backdrop; and iv) decline in Chinese sales given weak macro environment.

    Portfolio Team

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        Focuses on growth of your investment over the long term by investing in quality Australian companies which can consistently produce increasing earnings.

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      • International Growth Fund

        Focuses on growth of your investment over the long term by investing in quality international companies which can consistently produce increasing earnings.

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