BMC International (EX US) June 2026

The strongest contributors to performance during the month were ICON plc, Taiwan Semiconductor, FlatexDEGIRO, BAM Group and Warsaw Stock Exchange.

ICON was the largest contributor following continued evidence that conditions within the CRO industry are improving after what has been a challenging period for the sector. Taiwan Semiconductor continued to benefit from exceptionally strong demand for AI infrastructure, while FlatexDEGIRO delivered another solid month as retail trading activity remained healthy. Warsaw Stock Exchange and Singapore Exchange also contributed positively as capital market activity remained robust.

The weakest contributors during the month were TMX Group, Airtel Africa, GMO Payment Gateway, MediaTek and SWCC Corporation.

Key market events and trends

The first half of 2026 ended with MSCI ACWI up 14% in euros. This return was largely created during the second quarter, when the index rose by 16%, making this one of the strongest quarters of the past 25 years. The first quarter was weakened by geopolitical unrest in the Middle East and sharply rising energy prices, with the stock market lifting once these tensions eased.

The half year can be characterized as a market in constant rotation: gold and silver were in the lead initially, followed by oil and gas in March, as the war with Iran dominated. From April, AI infrastructure, memory chips, and semiconductors were at the forefront, while SpaceX's record IPO in June spurred positive sentiment further. The semiconductor sector rose by 88% in the second quarter, thanks to solid profit growth in Micron, Samsung Electronics, and SK Hynix.

AI remains the dominant driver in the market. Data centers are being built at an extraordinary pace across the globe, and AI-driven products are increasingly woven into everyday life, a definitive sign that this is a structural trend sooner than a transitory theme.

It is worth noting that the solid boost to the market in the second quarter was created by only a handful of companies. The market breadth (the number of companies in the index driving the returns) is typically at 35–60%. During Q2 2026, it was at an unusually low figure of some 25%.

It is positive that the fundamentals of global companies as a group continue to strengthen. At the start of 2026, the market forecast profit growth of around 14% on average for the MSCI World index. This has since been revised upward to 22%, with expected profit growth of a further 14% for 2027.

Portfolio changes

During June we initiated two new positions: Shiga Bank and BuySell Technologies.

Shiga Bank is another investment aligned with our Japanese reform theme. The company combines a strong regional banking franchise with substantial excess capital and a large portfolio of cross-shareholdings that management has committed to reducing. Shiga also owns a large stake in Murata Manufacturing, a significant beneficiary of the AI investment cycle, whose strong share price performance has resulted in the bank's book value being understated by approximately ¥200 billion. We believe this creates significant scope for improved shareholder returns over the coming years.

BuySell Technologies is a Japanese re-commerce platform benefiting from strong structural growth as Japan's ageing population increasingly monetises second-hand goods. The company has an excellent track record of organic growth, attractive economics and a management team with a clear focus on long-term value creation.

The fund's positioning

We remain very optimistic about the opportunities available across the portfolio. Our largest investment themes continue to be Japanese corporate reform, Asian technology, financial market infrastructure and European businesses undergoing meaningful capital allocation improvements. We continue to see an attractive pipeline of new investment opportunities and believe the portfolio remains well positioned for long-term compounding.

*MSCI ACWI ex USA NTR in EUR