Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 30th June 2026
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 7.1% | 8.44% | - |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 7.1% | 8.44% | - |
American Century International Growth Fund returned 8.44% in Q2 2026, underperforming the MSCI EAFE Index which returned 10.82%. Non-U.S. developed markets rallied with strong but narrow performance concentrated in AI-related themes. Large-cap growth stocks outperformed. Geopolitical risks eased as Iran conflict concerns subsided, though global growth remained slower but resilient. Financials holdings, particularly capital markets names like Deutsche Boerse and London Stock Exchange Group, weighed on relative performance, as did insurers like AIA Group. Health care detracted due to cost inflation concerns affecting equipment suppliers Terumo and EssilorLuxottica, plus pharmaceuticals like AstraZeneca. Industrials added strength through machinery holdings, notably FANUC. Key contributors included ARM Holdings on AI adoption, Infineon Technologies on semiconductor demand, and ASML Holding on strong equipment orders. The portfolio maintains a balanced posture with controlled factor exposures, focusing on AI enablement, factory automation, selective banking opportunities, and increased consumer exposure through premium travel and beverages. Notable trades included initiating Orsted on renewable energy inflection and exiting Sumitomo Realty and Hitachi after thesis realization.
The fund invests in large-cap companies in developed markets outside the U.S. where business fundamentals are strong and improving but share prices do not fully reflect those factors, maintaining a balanced portfolio with controlled factor exposures while capitalizing on AI enablement, factory automation, and selective opportunities in financials and consumer-related businesses.
The portfolio continues to invest in companies where business is strong and improving but share price performance does not fully reflect that factor. The team maintains a more balanced posture with controlled factor exposures to avoid excess risks if market leadership shifts. AI enablement has become a granular theme with expanding participation across industries. Factory automation presents a tailwind for industrials, and selective opportunities exist in banks as loan growth inflects. The team has increased exposure to the consumer through premium travel and leisure businesses, as well as select beverages opportunities.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 28 2026 | 2026 Q2 | 4543.T, 6861.T, 6954.T, 8035.T, 8316.T, A5G.IR, ARM, ASML, AZN, BNP.PA, BTI, DB1.DE, ENI.MI, IBE.MC, IFX.DE, LSEG.L, ML.PA, ORSTED.CO, SU.PA | AI, financials, growth, healthcare, industrials, international, large cap, semiconductors | - | American Century International Growth returned 8.44% in Q2 2026, lagging the benchmark's 10.82% as AI-driven concentration dominated markets. Financials and health care detracted on capital markets weakness and cost inflation concerns. Industrials and semiconductors contributed through AI and automation exposure. The portfolio maintains balanced factor exposures while capitalizing on AI enablement, factory automation, selective banking opportunities, and increased consumer exposure. |
| Apr 29 2026 | 2026 Q1 | 6201.T, ADYEN.AS, ASML, BNP.PA, CRH, ENI.MI, MC.PA, SAP | AI, Automation, Banking, energy, Geopolitical, growth, international |
ADYEN.AS ENI.MI BNP.PA |
International Growth Fund fell 5.16% in Q1 2026 as Iran war disrupted markets and spiked oil prices. AI competitive threats pressured tech stocks while geopolitical uncertainty weighed on industrials and financials. Managers exited CRH and LVMH for higher-conviction ideas, adding Eni and BNP Paribas. Investment themes include AI enablement, factory automation, and banking opportunities from loan growth inflection. |
| Jan 23 2026 | 2025 Q4 | 6758.T, 6954.T, 7532.T, AI.PA, AIR.PA, ASML, AZN, BABA, BVI.PA, GALDA.SW, GLE.PA, IBE.MC, RACE, REL.L, ROG.SW, SAP, SU.PA | AI, Automation, Europe, international, Japan, large cap, Pharmaceuticals | - | American Century's International Growth Fund returned 0.33% in Q4 2025, lagging the MSCI EAFE benchmark. The fund reduced data center exposure due to AI uncertainty while increasing focus on factory automation and healthcare innovation. Key contributors included European financials and pharmaceuticals, while luxury automaker Ferrari detracted on conservative guidance. The portfolio maintains conviction in companies with strong fundamentals trading below intrinsic value. |
| Oct 19 2025 | 2025 Q3 | 3064.T, 7011.T, AI.PA, AIR.PA, ASML, AZN.L, BABA, CRH, CSL.AX, GLE.PA, IBE.MC, LSEG.L, NVO, ONON, PNDORA.CO, PRX.AS, RACE, SAP.DE, SHOP.TO, SONY | AI, Asia, Europe, financials, growth, healthcare, international, large cap, technology | - | International Growth Fund returned 0.85% in Q3 2025, underperforming on financials weakness and consumer discretionary headwinds despite healthcare strength. Key contributors included Alibaba's AI-driven cloud acceleration and CRH's margin expansion. The portfolio maintains focus on undervalued quality companies across AI, digital transformation, healthcare innovation, and European recovery themes. |
| Jul 22 2025 | 2025 Q2 | 3064.T, 7011.T, AI.PA, AIR.PA, ASML, AZN.L, BABA, CRH, CSL.AX, GLE.PA, IBE.MC, LSEG.L, NVO, ONON, PNDORA.CO, PRX.AS, RACE, SAP.DE, SHOP.TO, SONY | AI, Asia, defense, E-Commerce, Europe, growth, international, large cap | - | International Growth Fund returned 0.85% in Q3 2025, underperforming on financials weakness and consumer discretionary headwinds. Healthcare stock selection and positions in Alibaba, CRH, and Shopify contributed positively. The portfolio targets undervalued strong companies across AI, digital transformation, healthcare innovation, and European recovery themes while navigating political uncertainties and currency headwinds. |
| Mar 31 2025 | 2025 Q1 | 6861.T, 8316.T, 8766.T, AI.PA, ASML, AZN, GLBE, GLE.PA, LSEG.L, NVO, ONON, RACE, RELX.L, SAP, SIE.DE, SONY, TM, TTI | AI, Europe, financials, growth, healthcare, international, Japan, technology | - | American Century's International Growth Fund returned 1.87% in Q1 2025, underperforming the MSCI EAFE benchmark amid U.S. policy uncertainty. The fund targets undervalued large-cap companies in developed markets outside the U.S., focusing on Europe recovery opportunities, technology digitalization trends, pharmaceutical innovation in obesity and cancer treatments, and ingredients makers benefiting from volume growth acceleration. |
| Sep 30 2024 | 2024 Q3 | 0669.HK, 6501.T, 6861.T, 6981.T, 7011.T, 9983.T, AI.PA, ASML, AZN, BVI.PA, CLNX.MC, ICLR, LSEG.L, NESN.SW, NVO, ONON, RACE, REL.L, SAP, SU.PA | Energy Transition, growth, healthcare, infrastructure, international, Pharmaceuticals, semiconductors, technology | - | International growth fund targeting undervalued companies in developed markets outside the U.S. with exposure to infrastructure spending, energy transition, AI digitalization, and pharmaceutical innovation. Q3 performance hurt by healthcare disappointments and semiconductor headwinds, but consumer discretionary contributed positively. Managers see improving earnings momentum carrying into 2025 as economies navigate soft landing. |
| Jun 30 2024 | 2024 Q2 | 1299.HK, 4063.T, 6861.T, ADYEN.AS, AI.PA, AIR.PA, AKE.PA, ASML, AZN, CRH, EDEN.PA, IFX.DE, JHX, LSEG.L, MC.PA, NESN.SW, NVO, RELX.L, SAP, SRT3.DE, SU.PA, TM, TSM, UBS, UL | Asia, Energy Transition, Europe, healthcare, infrastructure, international, semiconductors, technology | - | International Growth Fund underperformed in Q2 as financials and materials holdings weighed on returns while technology positions helped. The fund added consumer staples positions and reduced cyclical exposure. Despite some manufacturing weakness emerging, managers maintain focus on structural growth themes including energy transition, AI-driven demand, healthcare innovation, and infrastructure investment across developed international markets. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
AIAI-related themes drove outsize returns during the quarter, with performance highly concentrated in artificial intelligence-related stocks. ARM Holdings has seen rapid adoption of its CPU architecture in AI and hyperscaler workloads, taking significant market share with power-efficient designs. The portfolio views AI enablement as a granular theme, with expanding industries participating as hyperscalers revise capital expenditure plans upward. |
Semiconductors Hyperscalers Data Centers Cloud |
Semiconductor CycleSemiconductor holdings contributed positively, with Infineon Technologies benefiting from AI and early demand inflection in automobiles, plus expected price increases. ASML Holding advanced on strong demand and optimistic near-term guidance. Tokyo Electron rose on strong AI-related semiconductor spending and record earnings with positive forward guidance. |
Semiconductors AI Equipment Memory | |
Factory AutomationFactory automation presents a tailwind for industrials, with demand for AI-integrated processes and robotics increasing as businesses move to automation. FANUC, which manufactures industrial robotics and automation systems, was a notable contributor. Companies are poised to benefit from new applications in industries like agriculture. |
Robotics Automation Industrials AI | |
Energy TransitionThe portfolio initiated a position in Orsted, a Denmark-based renewable energy company believed to be at an inflection point. Policy risk in U.S. offshore wind has begun to clear, improving cash flow visibility. Europe has accelerated offshore auctions to secure energy independence, and recent favorable court rulings support normalization with optional upside. |
Renewables Wind Offshore Wind Policy | |
Regional BanksThe portfolio remains constructive on select opportunities in the banking industry. As loan growth inflects in various regions, banks appear well positioned for earnings growth. Net interest income has grown, and excess liquidity is rolling into higher interest rates as loans mature. The banking industry should be a primary beneficiary of efficiency gains through implementation of new technology and software. |
Banks Loan Growth Net Interest Income Technology | |
TravelThe portfolio increased exposure to premium travel and leisure-related businesses to benefit from improved discretionary consumer spending. This reflects a constructive view on the consumer discretionary recovery in select segments. |
Leisure Consumer Discretionary | |
BeveragesWhile staples broadly remain challenged by weak volume growth and increased competition, the portfolio has found opportunities in the beverages industry, which are more insulated and have seen increased demand. |
Consumer Staples Demand | |
PharmaceuticalsPharmaceuticals industry holdings, including AstraZeneca, weighed on relative performance during the quarter. Health care equipment and supplies also detracted, with investors broadly considering the risks of cost inflation affecting companies like Terumo and EssilorLuxottica. |
Healthcare Cost Inflation Medical Devices | |
| 2026 Q1 |
AIAI enablement has become a granular theme as cloud hyperscalers revise capital expenditure plans upward, expanding participation across industries including copper producers. However, AI also poses competitive threats to data and software companies, with stocks selling off after new AI tools were released. |
Artificial Intelligence Cloud Hyperscalers Automation |
Factory AutomationFactory automation presents a tailwind for industrials as demand for AI-integrated processes and robotics increases. Companies are positioned to benefit from new applications across industries like agriculture. |
Automation Robotics Industrial Agriculture | |
OilWar in Iran has destabilized markets as oil prices spiked after the Strait of Hormuz was partially closed. Energy stability is a key concern as nearly 20% of the world's oil and gas supply moves through this strait. |
Oil Energy Geopolitical Iran | |
CopperCopper producers are positioned to benefit as AI enablement expands, with massive amounts of raw materials required for the expanding AI infrastructure buildout. |
Copper Raw Materials AI Infrastructure | |
| 2025 Q4 |
AILarge-cap technology stocks, which led for much of the year, weakened into year-end, with more speculative names under pressure. Macro-thematic measures helped motivate successful overweight positions in U.S. and Taiwanese technology stocks. |
Technology Semiconductors Taiwan Nvidia TSMC |
FinancialsThe financials sector benefited as yield curves steepened and credit conditions eased following dovish Federal Reserve rate cuts. The fund maintained slight overweight holdings in the financials sector. |
Banks Interest Rates Credit JPMorgan Morgan Stanley | |
ValueGlobal market leadership broadened after Federal Reserve rate cuts, resulting in a rotation of style leadership as value fared well and momentum moderated after strong year-to-date returns. |
Style Rotation Leadership Broadening | |
| 2025 Q3 |
AIArtificial intelligence exposure has become a broad spectrum theme with investment in data center capacity reaching across sectors and industries. AI-related demand is accelerating cloud computing segments and enabling new AI-enabled products with complex analysis and efficient deep learning models. |
Data Centers Cloud Machine Learning Analytics Computing |
E-commerceLeading e-commerce platforms in China continue to experience strong growth in core segments. E-commerce platform providers are expanding into new markets with diverse product offerings, supporting better-than-expected sales outlooks. |
Digital Commerce Platforms Online Retail Market Expansion Growth | |
Defense SpendingNATO-driven increases to European defense budgets create opportunities in traditional defense and cybersecurity sectors as countries invest in military capabilities and security infrastructure. |
NATO Military Cybersecurity European Defense Security | |
Infrastructure SpendingIncreasing utilities capital expenditure continues to act as a tailwind for industrials, including electrical components manufacturers. The pace of interest rate cuts in European economies may stimulate accelerated growth in rate-sensitive areas including infrastructure. |
Utilities Electrical Equipment Rate Sensitive Capital Expenditure Growth | |
| 2025 Q2 |
AIArtificial intelligence exposure has become a broad spectrum theme with investment in data center capacity reaching across sectors and industries. Alibaba's cloud computing segment has accelerated meaningfully aided by artificial intelligence-related demand. The company is well positioned to benefit from new AI-enabled products featuring complex analysis and efficient deep learning models. |
Data Centers Cloud Machine Learning Analytics Computing |
E-commerceLeading e-commerce platforms continue to experience strong growth in core segments. Alibaba operates the leading e-commerce platform in China and continues strong growth in its core e-commerce segment. Shopify reported better-than-expected quarterly results with sales outlook beating estimates due to expansion into new markets and diverse product offerings. |
Digital Commerce Online Retail Platforms Growth Markets | |
Defense SpendingNATO-driven increases to European defense budgets create opportunities in traditional defense and cybersecurity. This represents a structural tailwind for defense-related investments as European countries increase military expenditures. |
NATO Military Cybersecurity Budget Europe | |
Infrastructure SpendingIncreasing utilities capital expenditure continues to act as a tailwind for industrials, including electrical components manufacturers. German markets await pledged infrastructure and defense spending to materialize, while supply chain normalization has accelerated civil aircraft production. |
Utilities Electrical Aviation Capital Expenditure Manufacturing | |
Energy TransitionThe acceleration of digitalization and energy transition themes are benefiting technology holdings and creating opportunities across sectors. Rate-sensitive areas including infrastructure are positioned to benefit from European economic recovery. |
Digitalization Clean Energy Infrastructure Technology Recovery | |
| 2025 Q1 |
EuropeEurope-focused companies are positioned for near-term improvement after a period of slow economic activity with expectations set very low. Signs of moderately improving economic activity and announcement of supportive government spending present companies with near-term opportunities to accelerate from a low baseline. |
Economic Recovery Government Spending Infrastructure Germany Military |
AIData-centric companies across sectors are integrating AI tools to drive incremental growth in their businesses by offering new and improved data product packages and software services. |
Data Centers Software Services Digital Transformation Automation Growth | |
PharmaceuticalsInnovative companies in the pharmaceuticals industry focused on very specific therapeutic areas with unmet needs are positioned to benefit from an inflection in growth. Obesity, cancer and skin conditions are areas that continue to generate a tremendous amount of investment opportunity. |
Obesity Cancer Therapeutic Areas Innovation GLP1 | |
CloudThe acceleration of digitalization is benefiting technology holdings exposed to cloud computing, automation, digital payments and information technology services growth. Japanese companies, in particular, are investing heavily to increase efficiency and profits as they seek to catch up with their international competitors. |
Digital Transformation Automation IT Services Japan Efficiency | |
| 2024 Q3 |
Infrastructure SpendingGovernments have committed to major infrastructure investment with fiscal stimulus programs enabling large-scale infrastructure projects to begin. There are now a large number of megaprojects underway around the world offering long-term growth opportunities to companies involved in building and adjacent products and services. |
Infrastructure Megaprojects Government Fiscal Construction |
Energy TransitionAs the world moves to rely less on fossil fuels, opportunities are emerging across sectors related to the transition. Increased demand for electric vehicles and large-scale renewable energy infrastructure projects creates inflection points for well-positioned businesses. |
Renewable Electric Vehicles Fossil Fuels Clean Energy | |
AIArtificial intelligence investment is leading to a significant increase in demand for electricity to power data centers. The acceleration of digitalization and growth of AI are benefiting the semiconductors industry and technology holdings exposed to cloud computing and automation. |
Data Centers Semiconductors Cloud Computing Automation Digitalization | |
SemiconductorsThe semiconductors industry is benefiting from AI growth and digital transformation. However, positions in semiconductors and semiconductor equipment had negative impact during the quarter, including ASML Holding which faced uncertain demand outlooks. |
Chip Equipment Digital Transformation Technology | |
PharmaceuticalsObesity and cancer are areas that continue to generate tremendous growth and investment in the pharmaceuticals industry. Successful new drugs have broadly encouraged increased funding for research and development, which also benefits supporting product and service providers. |
Obesity Cancer Drug Development Research | |
| 2024 Q2 |
Energy TransitionThe world's move away from fossil fuels creates opportunities across sectors. Increased demand for electric vehicles and large-scale renewable energy infrastructure projects creates inflection points for well-positioned businesses. AI investment is leading to significant increases in electricity demand to power data centers. |
Electric Vehicles Renewable Energy Data Centers Power Demand Decarbonization |
AIArtificial intelligence investment is driving significant increases in electricity demand to power data centers. The acceleration of digitalization and AI growth benefits semiconductor industry and technology holdings exposed to cloud computing and automation. |
Data Centers Semiconductors Cloud Computing Automation Power Demand | |
GLP1Obesity continues to generate tremendous growth and investment in the pharmaceutical industry. Novo Nordisk made announcements including a $4.1 billion investment in a new manufacturing facility and approval to launch its weight management injection Wegovy in China. |
Obesity Weight Management Pharmaceuticals Manufacturing China | |
Infrastructure SpendingGovernments have committed to major infrastructure investment. Fiscal stimulus programs enacted by governments in recent years have enabled large-scale infrastructure projects to begin, offering long-term growth opportunities to companies involved in building and adjacent products and services. |
Fiscal Stimulus Construction Government Investment Long-term Growth Building Materials | |
SemiconductorsSemiconductor industry positioning was the key driver of outperformance. Taiwan Semiconductor showed strong revenue growth and announced a share buyback. ASML Holding benefited from strong demand for lithography machines due to increased AI investment. Infineon Technologies also contributed positively. |
TSMC ASML Lithography AI Investment Revenue Growth |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Apr 29, 2026 | Fund Letters | American Century International Growth Fund | ADYEN.AS | Adyen NV | Software - Infrastructure | Data Processing & Outsourced Services | Bear | Euronext Stock Exchange | Asia-Pacific, Cross-Border, earnings, financial services, Netherlands, Payments, Revenue Growth, technology platform | Login |
| Apr 29, 2026 | Fund Letters | American Century International Growth Fund | ENI.MI | Eni SpA | Oil & Gas Integrated | Integrated Oil & Gas | Bull | Borsa Istanbul | Capital-light, Downstream Integration, energy, European Gas, Free Cash Flow, geopolitical, Oil & Gas, Upstream | Login |
| Apr 29, 2026 | Fund Letters | American Century International Growth Fund | BNP.PA | BNP Paribas SA | Banks - Regional | Diversified Banks | Bull | Euronext Stock Exchange | banking, Capital Base, European banks, france, Interest rates, net interest income, profitability, valuation | Login |
| TICKER | COMMENTARY |
|---|---|
| ARM | This U.K.-based semiconductor company has seen rapid adoption of its CPU architecture in artificial intelligence (AI) and hyperscaler workloads, where its power-efficient designs are taking significant market share. The company licenses chip architectures for artificial intelligence (AI), cloud and mobile devices. It has benefited from rising adoption of its power-efficient designs in AI, hyperscaler and data center workloads, driving a revenue and earnings inflection. |
| IFX.DE | Shares of the Germany-based semiconductor manufacturer have risen as AI and early signs of demand inflection in automobiles have been supportive. The company is also expected to raise prices for certain products over the next few months. |
| ASML | Shares of the high-end lithography equipment maker advanced after results showed continuing strong demand. Management has provided an optimistic outlook for the coming quarter and reinforced guidance over the near term. |
| 8035.T | Shares rose through the period due to strong artificial intelligence-related semiconductor spending, record annual earnings with positive forward guidance and optimism for advanced chip equipment demand. Our underweight exposure relative to the benchmark was a drag on relative performance. |
| ENI.MI | Company shares underperformed due to oil and gas price volatility alongside declining margins in refining and marketing. A broad investor rotation away from traditional energy into higher-growth sectors also created a headwind for shares. |
| ORSTED.CO | We believe this Denmark-based renewable energy company is at an inflection. Policy risk in U.S. offshore wind has begun to clear, improving visibility on cash flows. Europe has accelerated offshore auctions to secure energy independence. Recent favorable court rulings support a shift to normalization and optional upside. |
| 6954.T | Most notable was Japan-based FANUC, which manufactures industrial robotics and automation systems. |
| DB1.DE | Underperformance in the sector compared with the benchmark was mostly attributable to capital markets industry holdings, including Deutsche Boerse and London Stock Exchange Group. |
| LSEG.L | Underperformance in the sector compared with the benchmark was mostly attributable to capital markets industry holdings, including Deutsche Boerse and London Stock Exchange Group. |
| 4543.T | Overweight exposure to health care equipment and supplies industry names relative to the benchmark was the largest source of underperformance in the sector compared with the benchmark, including overweight positions in Terumo and EssilorLuxottica, as investors broadly considered the risks of cost inflation. |
| ML.PA | Overweight exposure to health care equipment and supplies industry names relative to the benchmark was the largest source of underperformance in the sector compared with the benchmark, including overweight positions in Terumo and EssilorLuxottica, as investors broadly considered the risks of cost inflation. |
| AZN | Pharmaceuticals industry holdings, including AstraZeneca, also weighed on relative performance. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
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| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
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