In the fourth quarter of 2025, the Invesco International Growth Fund exhibited a varied performance landscape. While it did not meet the returns of its primary benchmark, the MSCI ACWI ex-US Growth Index, the fund successfully outpaced the average performance of its peers in the Morningstar Foreign Large Growth category. This divergence highlights a period of significant global equity market fluctuations, where international stocks generally showed stronger performance compared to their US counterparts.
The fund's strategic decisions during this quarter involved both bolstering and streamlining its holdings. Five new companies were added to the portfolio, selected for their robust industry standing and favorable valuations. Conversely, seven positions were exited due to concerns over declining earnings quality, elevated valuations, or a misalignment with the fund's overarching strategy. These adjustments underscore a proactive approach to navigating market volatility and optimizing the portfolio's composition.
Looking ahead, the fund managers believe that the recent underperformance of high-quality international stocks presents a compelling entry opportunity. These companies are seen as resilient and capable of adapting to shifts in global trade policies and economic conditions. This perspective emphasizes a long-term vision, focusing on companies with intrinsic value and adaptability in an ever-changing global financial environment. The continuous re-evaluation and strategic recalibration of the portfolio are central to achieving sustainable growth.
The journey of investment is often characterized by both challenges and opportunities. By diligently analyzing market trends, making informed decisions, and maintaining a focus on high-quality assets, investors can navigate complex financial landscapes. Such an approach fosters resilience and positions portfolios for long-term success, ultimately contributing to financial well-being and growth.
