For the month, the International Growth Fund was up +5.2% compared to the benchmark (S&P Global LargeMidCap Index, 50% hedged into NZD) which was up +4.1%. Companies that meaningfully influenced portfolio returns were:

Netflix (+17%) continued to rise following a positive earnings report in October, driven by strong subscriber growth and margins. The month featured the highly publicized Tyson-Paul boxing match, which drew 60 million households, and with two NFL games scheduled for Christmas Day, Netflix is positioning itself as an attractive advertising platform.

Salesforce (+13%) benefited from improved sentiment around software stocks; and positive reception of its new AI Agentforce product. Software companies have been through a period of sluggish growth the last two years as customers digested high IT spend during COVID; and as IT budgets were shifted towards AI projects.

Amazon (+12%) had a solid November on the back of positive third quarter earnings result. The main theme in the quarter was margins in both AWS and ecommerce. AWS recorded its highest ever quarterly operating profit margin at 38%, the result of measured spending and revenue growth reaccelerating after a period of restrained customer spending post pandemic. Amazon’s ecommerce margins continue to improve following the large investment made into its logistics infrastructure.

Danaher (-2%) and Icon (-5%) declined on Donald Trump’s election, and also in Icon’s case, continued underperformance following its guidance downgrade last month as several large pharma customers reduced their R&D budgets and biotech spend has been slow to recover. Trump selected Robert F. Kennedy Jr. to be Health and Human Services secretary, and. while specific policies have not been announced, given his history of anti-pharma and anti-FDA rhetoric, this was seen negative for drugmakers and portfolio companies like Danaher and Icon that provide services or products to these customers.