The International Growth Fund returned +1.8% in June, compared to its benchmark of +3.3%.

Meta (+14%) was a top contributor to fund performance in June, a follow through from good earnings earlier in the quarter and easing tariff concerns for its advertising customers. It is making aggressive moves in AI with the acquisition of start-up ScaleAI while poaching top talent from leading AI company OpenAI to set up an internal super-intelligence team. We reduced weight in June given its strong year-to-date performance.

Mastercard (-4%) was a drag on fund performance in June on the back of the GENIUS Act approval by the US Senate. The GENIUS Act provides a regulatory framework for stablecoin issuers which were not in place previously, giving long-awaited clarity for participants. The Act still needs to be passed by The House and is expected to do so later in the year. The market is concerned that stablecoins will create an alternative financial system that could circumvent the existing traditional financial system and ultimately replace Mastercard for payments. We think the value proposition Mastercard offers for consumers and merchants remains strong and took the opportunity to add weight in June.

Gartner (-7%) declined as economic concerns and political uncertainty are slowing demand for Gartner's research products. This has been compounded by the cancellation of several government consulting contracts as part of the DOGE cost cutting. There are also concerns that AI could replicate some of Gartner’s research using publicly available data. However, we believe the level of independence and trust in Gartner’s brand, along with its proprietary data underpin the value of Gartner's research product. A Chief Information Officer asking their Board to sign off on a multi-million-dollar software purchase is unlikely to rely solely on the output of an AI search.