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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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American Century International Growth Fund 2024 Q3 Investor Letter | Buyside Digest

Back to Fund Profile (American Century International Growth Fund)

Primary Source Intelligence • Q3 2024 Letter Analysis

American Century International Growth Fund Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, American Century International Growth Fund. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

Annualized+6.98%

Digest Analysis

Quick Take

"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."

Executive Summary

American Century's International Growth Fund targets undervalued companies in developed markets outside the U.S. that are strong and improving but whose share prices lag fundamentals. The fund focuses on secular growth themes including government infrastructure investment, energy transition away from fossil fuels, AI-driven digitalization, and pharmaceutical innovation in obesity and cancer treatments. During Q3 2024, the portfolio faced headwinds from healthcare holdings, particularly Novo Nordisk's disappointing obesity trial results and AstraZeneca's clinical setbacks. Technology positions also weighed on performance due to overweighting semiconductors, with ASML facing China sales restrictions and uncertain demand. However, consumer discretionary contributed positively through On Holding's strong product innovation and Ferrari's performance. The managers initiated positions in Cellnex Telecom and Bureau Veritas while exiting Nestle and Murata Manufacturing. Looking forward, they see opportunities as global economies navigate a soft landing with improving earnings momentum and positive revisions continuing from Q2 into 2025.

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Institutional Meta Strategy

Meta Strategy Gauges

Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.

Signal Matrix

Market Conviction

62%

CautiousHigh

Moderate (62%)

The fund demonstrates moderate conviction through a concentrated approach with named top 10 holdings representing significant portfolio weight. The managers provide specific thesis explanations for individual positions and make decisive portfolio changes including exits from Nestle and Murata Manufacturing. However, the diversified nature across multiple themes and hedged language about selectivity prevents a higher score.

Growth Outlook

25%

BearishBullish

Bearish (25%)

The manager expresses cautious optimism about global economies continuing to migrate through a soft landing and sees encouraging signs of broad improvement in earnings momentum. However, they acknowledge ongoing volatility and slower economic growth as a drag on earnings, particularly among consumer-oriented names.

Risk Appetite

15%

DefensiveAggressive

Defensive (15%)

The portfolio maintains selective positioning with some new initiations but also made exits during the quarter. The manager describes continuing to invest in companies they believe are strong and improving, suggesting a measured risk appetite rather than aggressive deployment.

Capital Deployment

10%

De-riskingDeploying

De-risking (10%)

The manager initiated two new positions (Cellnex Telecom and Bureau Veritas) while exiting two others (Nestle and Murata Manufacturing), indicating capital rotation rather than net deployment. No cash level changes are mentioned, suggesting neutral deployment activity.

Forward Guidance

35%

CautiousExpansionary

Cautious (35%)

The manager is encouraged by stronger earnings momentum and positive earnings revisions continuing from Q2, expecting this to have a positive impact into 2025. They see opportunities across their identified secular themes but maintain a selective approach.

Language Signal

20%

BearishBullish

Bearish (20%)

Language is balanced with both positive terms like 'encouraged', 'opportunities', and 'strong' alongside risk-aware language about 'headwinds', 'disappointments', and 'uncertain' outlooks. The tone is constructive but measured.

Perceived Risk

45%

Low RiskElevated

Moderate Risk (45%)

The manager acknowledges periods of volatility, uncertain demand outlooks in semiconductors, and macro uncertainty but does not express systemic risk concerns. Risk discussion is moderate and focused on specific sector or company-level challenges rather than broad market threats.

Opportunity Density

65%

ScarceAbundant

Abundant (65%)

The manager identifies multiple secular growth themes and continues to find companies that are strong and improving but undervalued. They initiated new positions and describe broad themes emerging across sectors, suggesting a reasonably rich opportunity set despite selectivity requirements.

Time Horizon

75%

Short-TermLong-Term

Decade+ (75%)

The fund focuses on long-term secular themes like infrastructure investment, energy transition, and demographic trends. The manager describes these as offering long-term growth opportunities and emphasizes investing in companies for fundamental strength rather than near-term catalysts, indicating a multi-year investment horizon.