After several years of deliberation, we launched the DM International Eq-uity Fund at the beginning of Q3-2025 with the view that foreign markets currently offer compelling relative value. We seeded the mandate with an allocation to the iShares MSCI EAFE ETF to provide immediate exposure to major non-North American benchmarks, which we would then methodically convert to a fully managed format as our comprehensive research on each stock was completed and/or opportunities presented themselves. So far, we’ve added about a third of the names which will comprise the full portfolio, which are outlined below:
- ASML Holding — maker of complex photolithography machines, used by chipmakers to print intricate circuit patterns onto silicon wafers.
- Mercado Libre — “Amazon of Latin America”, facilitating online commerce in everything from groceries to houses to financial services.
- Hermés International — designs and manufactures high-end luxury products, from leather goods, to clothing, to jewellery, and cosmetics.
- Halma PLC — makes and distributes technology products across three broad categories: Safety, Environmental & Analysis, and Healthcare.
- Taiwan Semiconductor — the world’s largest dedicated microchip foundry, making complex integrated circuits for other companies.
- Safran SA — designs and manufactures products across 3 segments: Aerospace Propulsion, Aircraft Equipment, & Aircraft Interiors.
- Spotify Technology SA — world’s largest provider of music streaming services, offering millions of songs, podcasts, and audiobooks.
- Novo Nordisk — global pharmaceutical company, notable for its weight-loss drug Ozempic and diabetes treatment, Rybelsus.
- Sea Ltd. — online platform offering e-commerce, digital entertainment, and financial services primarily in Southeast Asian markets.
- Itochu — trading company operating across diverse sectors, including textiles, machinery, metals & minerals, and energy & chemicals.
- Mitsui & Co. — trading and investment company involved in energy, minerals, infrastructure, chemicals, food, mobility, and IT.
- Rolls Royce — designs and delivers power and propulsion systems within three divisions: Civil Aerospace, Defense, and Power.
In the weeks to come, we expect to further round out the portfolio, likely adding exposure to senior companies in less developed markets in Latin America and Southeast Asia.
Portfolio Activity
In December, we liquidated Man-ulife and added to both Constellation Software and Wheaton Prec. Metals. We also bought more Microsoft and Roper Tech.
Feature Stock
Amazon.com Inc. (AMZN)
Though AMZN’s share price has stalled in recent months — it currently sits at the same level it was a year ago — its business most definitely has not. Over the same period, AMZN revenue has risen by 13%, its earnings per share by 36%, and its profit margin by more than a third. Though the company is best known as the global leader in online retail commerce, other segments are faster growing and more profitable. Advertising has grown by more than 20% over the past year and now generates $177m in revenue per day, while the company’s cloud computing platform, Amazon Web Services (AWS), is its crown jewel of growth and profitability (in fact, some have called for this segment to be spun off from the less dynamic parent). One of the reasons that share price appreciation has fallen behind recent business growth is likely the worry that with the use of an AI agent to do their shopping, consumers won’t have the same need to visit the AMZN site. The company is not sitting on its hands, however, and is scheduled to spend more than $100bn on AI in 2025 alone. With the world’s largest cloud business, more than a million robots, and a massive online ad presence, AMZN’s opportunity in AI should exceed any threat.