The International Growth Fund returned +0.5% in September, compared to its benchmark of +4.5%. 

 ASML (+30%) rose on an improving demand backdrop for its lithography tools, which are critical in the production of advanced semiconductors. Heightened demand for AI chips requires further investment in manufacturing capacity. Additionally, the US Government’s investment in Intel, bolsters one of ASML’s top customers, who has been struggling to compete in the advanced chip market. 

Alphabet (+14%) shares jumped after a U.S. court ruled that Google will not have to divest Chrome or Android and can keep paying partners like Apple for search placement, rejecting the DOJ’s push for harsher remedies. After being seen as an AI loser much of the last two years, Google’s Gemini chatbot overtook OpenAI’s ChatGPT as the most downloaded app in the App Store, with its viral new image editing feature. Google is embedding its advanced Gemini AI across its entire product suite, and its deep integration with products and cloud infrastructure strengthens its position as a leader in AI. 

Dexcom (-11%) declined on the publication of a short report, citing issues with the reliability of Dexcom’s continuous glucose. We believe the report has overstated the issues. Management have said while there was a small issue with the deployment of the CGMs earlier this year due to problems with one supplier, only a small number of CGMs were impacted, and this has now been resolved and quality KPIs are improving. Channel checks with physicians confirmed that reliability has improved, and they are not seeing patients switch away from Dexcom. With the current expansion into the large Type 2 diabetic market just beginning, there is a long runway of growth ahead for Dexcom, and we used the weakness to add to our position.