The Case for International Growth in 2025: Why Calamos International Growth Fund is a Strategic Play

The global investment landscape in 2025 is defined by a confluence of macroeconomic shifts, technological inflection points, and policy-driven reallocations. Amid this backdrop, the Calamos International Growth Fund (CIGIX) emerges as a compelling vehicle for investors seeking active global diversification and exposure to secular growth themes. With a 5-year annualized gross return of 5.72% as of June 30, 2025—outperforming the MSCI ACWI ex USA Index's 4.01%—the fund has demonstrated its ability to capitalize on international opportunities while navigating volatilityInternational Growth Strategy^[3]. This outperformance, coupled with a strategic focus on high-conviction sectors and a dynamic approach to market allocation, positions CIGIX as a strategic play for 2025.

Active Diversification: Balancing Emerging and Developed Markets

The fund's approach to global diversification is rooted in a nuanced understanding of regional inflection points. While emerging markets offer growth potential, developed markets provide stability and innovation hubs. In 2025, CIGIX is leveraging both. For instance, Germany's €600 billion fiscal stimulus over five years is expected to catalyze industrial and materials sectors, while China's policy easing hints at a potential economic reboundApril 2025 Outlook: Calamos International Growth Fund^[4]. The fund's selective exposure to China emphasizes quality companies aligned with structural reforms, avoiding broad generalizations about the region's risksApril 2025 Outlook: Calamos International Growth Fund^[4].

Emerging markets, particularly in Asia, remain a focal point for the fund's opportunistic approach. As stated by Calamos in its 2025 outlook, “Asia's evolving tech and manufacturing ecosystems present fertile ground for companies poised to benefit from AI-driven infrastructure and supply chain reconfigurations”2025 Outlook: Calamos International Growth Fund^[1]. This aligns with the fund's emphasis on identifying firms at the forefront of global transitions, such as those involved in data center thermal management or renewable energy integration.

Secular Growth Positioning: AI and Beyond

The fund's secular growth strategy is anchored in long-term themes with compounding potential. Artificial intelligence (AI) stands out as a defining force, with CIGIX capitalizing on its expansion beyond semiconductors into software, industrials, and consumer technologies2025 Outlook: Calamos International Growth Fund^[1]. The analogy to the mobile revolution—where AI's impact could mirror the transformative effects of smartphones—underscores the fund's forward-looking mindset2025 Outlook: Calamos International Growth Fund^[1].

Renewables and energy transition technologies further bolster the fund's growth thesis. As global demand for clean energy infrastructure accelerates, CIGIX's portfolio includes companies addressing bottlenecks in power storage, grid modernization, and sustainable materials. This focus aligns with macroeconomic trends: disinflationary growth and falling inflation are tailwinds for international equities, particularly in sectors with recurring revenue streams2025 Outlook: Calamos International Growth Fund^[1].

Macro Tailwinds: Dollar Weakness and Policy Shifts

The global macroeconomic environment in 2025 is increasingly favorable for international equities. The US dollar, after a 13-year overvaluation, is showing signs of decline, creating currency translation benefits for non-US assetsApril 2025 Outlook: Calamos International Growth Fund^[4]. Historical patterns suggest that international stocks outperform US markets during dollar weakness, especially in cyclical sectors like industrials and materialsApril 2025 Outlook: Calamos International Growth Fund^[4].

Policy shifts further amplify this dynamic. While “America First” rhetoric has fueled near-term pessimism for non-US equities, Calamos argues that trade tensions could drive a “global rebalancing” rather than a zero-sum outcome2025 Outlook: Calamos International Growth Fund^[1]. For example, new tariffs may incentivize multinational corporations to diversify supply chains, creating opportunities for firms in Europe and Asia. South Korea's structural reforms and Germany's industrial stimulus exemplify how country-specific policies are reshaping the global growth map2025 Outlook: Calamos International Growth Fund^[1].

A Case for Strategic Allocation

CIGIX's 2024 performance—12.48% gross returns versus the index's 6.09%—illustrates its ability to harness these dynamics2025 Outlook: Calamos International Growth Fund^[1]. This outperformance, combined with its disciplined focus on quality growth fundamentals and thematic agility, makes the fund a compelling addition to portfolios seeking international exposure. As J.P. Morgan Research notes, the 40% probability of a US recession in late 2025 underscores the need for diversificationMid-year market outlook 2025 | J.P. Morgan Research^[2]. CIGIX's active management and sectoral depth provide a hedge against domestic-centric risks while capturing the upside of global innovation.

In conclusion, the Calamos International Growth Fund is uniquely positioned to navigate the complexities of 2025. By combining active diversification across emerging and developed markets, a focus on secular growth themes like AI and renewables, and a macro-aware approach to policy and currency shifts, the fund offers a strategic pathway for investors seeking to capitalize on the “great global rebalancing.”