The Harbor International Compounders Fund (HSICX) returned 3.19% in the fourth quarter of 2025, underperforming its benchmark, the MSCI All Country World ex-US Index, which gained 5.05%. Key holdings like AstraZeneca and SSE contributed positively to performance. The fund made several portfolio adjustments, including new purchases and sales of positions.
In its Q4 2025 commentary, the Harbor International Compounders Fund detailed its performance amid a global market environment. The fund achieved a 3.19% return for the quarter, lagging behind the MSCI All Country World ex-US Index's 5.05% gain. This underperformance occurred as Europe experienced low growth rather than outright contraction, according to the report from C Worldwide Asset Management.
Positive influences included AstraZeneca, bolstered by oncology momentum from its results, and SSE, where strategic guidance alleviated funding concerns. The fund's managers adjusted holdings by purchasing shares in Contemporary AmpereX Technology, Mercado Libre, Rheinmetall, and Tesco. They also increased their stake in Prosus.
On the sell side, the fund exited positions in Novo Nordisk, citing weakening confidence in its pricing power and rising competition. Other sales included Atlas Copco, SMC, Ferguson, and Diageo.
Looking ahead to 2026, the commentary anticipates a market shift toward fundamentals, diversification, and recognition of earnings and quality beyond the U.S. With the U.S. now accounting for about 65% of global equity indexes, the report draws on historical parallels to urge caution.
