Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st December 2025
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 7.1% | 0.3% | 15.6% |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 7.1% | 0.3% | 15.6% |
American Century's International Growth Fund delivered a 0.33% return in Q4 2025, underperforming the MSCI EAFE Index's 4.86% gain. The fund focuses on large-cap companies in developed markets outside the U.S. where fundamentals are strong but share prices don't fully reflect improving conditions. Key contributors included Societe Generale, which benefited from strong quarterly results and retail banking rebound, AstraZeneca on successful hypertension trial results, and Galderma Group driven by strong eczema treatment sales. Ferrari was the primary detractor after conservative guidance, while Bay Current and Rakuten Bank also weighed on performance. The portfolio reduced exposure to data center supply chains due to financing and power constraints while increasing focus on factory automation, digital transformation, and healthcare innovation. Notable trades included initiating positions in Roche Holding and FANUC while exiting Bureau Veritas and Bay Current. The fund maintains conviction in companies positioned to benefit from AI-driven automation demand, pharmaceutical innovation, and supply chain normalization in civil aircraft production.
The fund invests in large-cap companies in developed markets outside the U.S. where fundamentals are strong and improving but share prices do not fully reflect these factors, focusing on individual security selection across themes including AI-driven automation, healthcare innovation, and digital transformation.
The portfolio continues to invest in companies where fundamentals are strong and improving but share price performance does not fully reflect these factors. Broad themes have emerged including factory automation tailwinds for industrials, digital transformation supporting technology positions, healthcare innovation creating opportunities, and supply chain normalization accelerating civil aircraft production.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| 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 | - | Artificial intelligence-related market uncertainty drove broad rotation into value and away from growth. While investment in data centers has created optimism, concerns persist about financing, supply chain and power constraints. Investors also continue to consider the impact of AI on traditional business models. Demand for AI-integrated processes and robotics has increased as businesses move to factory automation. Companies are poised to benefit from new applications in industries like agriculture. The fund initiated a position in FANUC, expecting revenue and earnings to accelerate as global automation demand grows. Companies in the pharmaceuticals industry have focused on new products in therapeutic areas with unmet needs, including cancer and skin conditions. These select companies with innovative product pipelines are positioned to benefit from an inflection in growth. The acceleration of digitalization is benefiting technology holdings exposed to cloud computing, automation, digital payments and IT services growth. Japan-based companies, in particular, are investing heavily to increase efficiency and profits as they seek to catch up with their international competitors. |
| Oct 19 2025 | 2025 Q3 | - | AI, Cloud Computing, emerging markets, Europe, infrastructure | - | Artificial intelligence continues to drive growth across global technology and e-commerce platforms, boosting cloud computing demand and capital expenditure in data centers. Emerging markets benefited from improved macro visibility and selective sector opportunities, especially in China and India. European equities remain attractive due to easing monetary policy, defense spending, and infrastructure stimulus. |
| Jul 22 2025 | 2025 Q2 | 6861 JP, 7011 JP, 7453 JP, AZN, ENR, LSEG, NGG, PGHN SW, SPOT, UBS | Competitive Advantage, earnings durability, innovation, International Growth, secular trends | - | The letter focuses on global growth opportunities driven by innovation, secular demand, and expanding international consumer markets. Management emphasizes earnings durability, competitive advantages, and long runway growth rather than short-term macro noise. The outlook remains constructive on quality growth franchises despite volatility. |
| Mar 31 2025 | 2025 Q1 | 6758 JP, 7203 JP, AI FP, GLBE, GLE FP, NVO, ONON, SIE GR | - | - | |
| Sep 30 2024 | 2024 Q3 | 669 HK, 6981 JP, 7011 JP, ASML, BVI FP, CLNX SM, ICON, NESN SW, NVO, ONON | - | - | |
| Jun 30 2024 | 2024 Q2 | 0RR6 LN, AIR FP, AKE FP, DIM FP, EDEN FP, NVO, TSM, TYT LN, UBSG SW, ULVR LN | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIAI has been integrated into RGA's research process through tools like NotebookLM, Gems in Gemini, and Claude Code. The firm views AI as a force multiplier for human judgment rather than a replacement, emphasizing the Kasparov Law principle. They believe the market narrative around AI displacement is swinging to unhelpful extremes, creating investment opportunities. |
Machine Learning Automation Software Productivity Innovation |
Digital TransformationThe acceleration of digitalization is benefiting technology holdings exposed to cloud computing, automation, digital payments and IT services growth. Japan-based companies, in particular, are investing heavily to increase efficiency and profits as they seek to catch up with their international competitors. |
Cloud IT Services Japan Efficiency | |
Factory AutomationDemand for AI-integrated processes and robotics has increased as businesses move to factory automation. Companies are poised to benefit from new applications in industries like agriculture. The fund initiated a position in FANUC, expecting revenue and earnings to accelerate as global automation demand grows. |
Robotics Industrial Automation Manufacturing | |
PharmaceuticalsEli Lilly represents a high-quality growth franchise in global healthcare, with leadership in diabetes, obesity, and neuroscience providing durable competitive advantages. The company's GLP-1 treatments continue to see demand outpace supply with additional indications on the horizon. |
Pharmaceuticals GLP1 Diabetes Obesity Healthcare | |
| 2025 Q3 |
AIAI has been integrated into RGA's research process through tools like NotebookLM, Gems in Gemini, and Claude Code. The firm views AI as a force multiplier for human judgment rather than a replacement, emphasizing the Kasparov Law principle. They believe the market narrative around AI displacement is swinging to unhelpful extremes, creating investment opportunities. |
Machine Learning Automation Software Productivity Innovation |
Emerging marketsGlobal equities, especially those outside the U.S., powered equity returns. In emerging markets, shares of companies linked to commodities were the strongest performers as commodities rallied. Even after a strong year for international and emerging markets shares, we still see some of the best value in the world in these areas. |
International Commodities Non-US Best Value | |
EuropeThe firm is expanding European relationships and published research on European shareholder activism. They view Europe as an attractive alternative to expensive American markets and are building manager relationships in the region. |
Activism Shareholder Valuation Diversification Research | |
| 2025 Q2 |
Growth |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| 6758.T | Sony |
| 6954.T | Fanuc reported September quarter results that beat consensus estimates, raising full-year operating profit guidance by 10% on demand recovery and improved utilization rates. Robot orders were particularly strong, up 38% y/y, driven by reshoring-related automation demand in North America, European automation investments, and new energy vehicle spending in China. Furthermore, at an international robot show in December, Fanuc showcased significant advancements in AI-enabled robotics, with commercialization that may arrive in the coming years. |
| AI.PA | Air Liquide, one of our larger holdings in the portfolio, experienced downward market pressure. We trimmed our position over the last few months based on valuation yet view the company's strategic positioning in decarbonization and ongoing contract wins supporting durable earnings potential. |
| AIR.PA | We initiated three positions during the quarter, the largest being European aerospace and defense contractor Airbus. The long-term demand for commercial aircraft to support air travel is increasing, with much of the growth from China and other parts of Asia, while aging of the existing fleet provides a robust pipeline of replacement demand for years to come. With the A320 family providing a durable and scalable platform, Airbus is entering a favorable period for free cash flow growth before it needs to invest in a next-generation aircraft. |
| ASML | ASML, TSMC, and Arista Networks are key players in the AI build out supply chain. |
| AZN | World-class pharmaceutical and medical products manufacturer |
| BABA | Alibaba was a detractor during the quarter after the company reported mixed fiscal Q2 results. While cloud revenue growth accelerated and margins remained stable, the core commerce business struggled with slowing growth and significant profit pressure, particularly in the quick commerce segment where heavy investment and intense competition led to a sharp decline in profitability. |
| GALDA.SW | The Switzerland-based pharmaceutical company's stock has outperformed, driven in part by strong sales growth of its prescription biologic treatment for moderate to severe eczema. The company raised guidance during its last earnings call, reflecting continued strong demand for its products. |
| GLE.PA | Shares of the France-based investment bank rose as the company reported strong quarterly results, with a boosted profit outlook due to a continued rebound in retail banking. The bank has benefited from initiatives to improve profitability and its performance versus European peers. |
| IBE.MC | Spanish energy company Iberdrola reported a 17% rise in third-quarter net profit to €5.3 billion and raised its full-year profit guidance to €6.6 billion. Iberdrola shares gained nearly 15% for the quarter. |
| RACE | Our largest common stock holding is Ferrari. Over the last three years we have purchased 543,800 shares. At year-end, our investment in Ferrari was valued at $202.3 million. When we started purchasing shares in 2022, we were thinking about what the company would look like in two decades. Ferrari's vehicles will, of course, continue to change over the coming years, but we think the reasons people will choose the brand in the 2040s will be nearly the same as they are today. We believe Ferrari is one such company that has sustained its competitive edge. |
| REL.L | fears around AI-driven disintermediation led to notable sell-offs in a number of UK quality 'darling' names such as RELX, Experian and the London Stock Exchange Group |
| ROG.SW | Top gainers among the Fund's holdings included Roche (+27%) |
| SAP | We trimmed SAP SE. |
| SU.PA | Roughly one third of the portfolio, from Legrand to Schneider to Microsoft, is involved in the AI build-out in some way, from power to cooling to efficiency support. |
| 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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| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
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| No industry data available | |||