Calamos Investments, managers of the International Growth Fund, are entering 2026 with a positive outlook, expecting a continuation of the cyclical and long-term trends that fueled market growth in the previous year. The fund achieved a notable 23.12% return for the full year, surpassing its benchmark. Key drivers for future growth include a projected multi-year surge in defense spending, driven by global restocking and technological advancements. Additionally, the firm anticipates significant developments in the humanoid robotics sector, with increased orders and production scaling up. Investment opportunities are being identified across various sectors and regions, particularly in industrials, AI infrastructure, semiconductors, e-commerce, and media in Japan.
The investment landscape for 2026 is characterized by a global rebalancing, where diversified portfolios are strategically positioned to capitalize on widespread gains. The fund's approach involves increasing exposure to cyclical industries, focusing on companies with strong secular growth potential, and expanding into financial, industrial, and commodity markets, especially in Europe and emerging economies. This diversified strategy aims to mitigate risks while capturing upside potential from ongoing economic and technological shifts.
Global Market Rebalancing and Strategic Shifts for 2026
In 2025, a global market rebalancing created fertile ground for investors with diversified portfolios, enabling them to capitalize on growth across various international markets. Building on this momentum, Calamos Investments maintains an optimistic perspective for 2026, foreseeing that the cyclical and secular forces that propelled gains in the prior year will continue to present lucrative investment prospects. The Calamos International Growth Fund I Shares notably outperformed its benchmark, delivering a 23.12% return for the entire year, demonstrating the efficacy of its strategic allocations. The fund's managers are particularly focused on increasing their exposure to cyclical sectors while simultaneously pursuing long-term growth opportunities that align with prevailing global trends. This dual-pronged strategy is designed to navigate evolving market dynamics and capitalize on both short-term fluctuations and enduring structural shifts.
Looking ahead, the fund is strategically broadening its investment scope to include financials, industrials, and commodities, with a particular emphasis on opportunities within Europe and emerging markets. This expansion reflects a belief in the inherent value and growth potential within these regions and sectors as global economic conditions continue to normalize and adapt. The decision to diversify across these areas is underpinned by a thorough analysis of market trends, economic indicators, and geopolitical developments, all of which suggest a robust environment for capital appreciation. By carefully selecting investments that align with these broader economic narratives, the Calamos International Growth Fund aims to sustain its strong performance and generate superior returns for its investors in the coming year.
Key Growth Drivers: Defense, AI, and Robotics Innovation
A significant long-term driver of growth for the Calamos International Growth Fund is the anticipated three-to-five-year cycle of military equipment restocking, defense sector expansion, and strategic technological investments. This trend is a direct response to countries addressing past underinvestments in defense capabilities, creating a sustained demand for related industries. This robust outlook for defense spending contributes substantially to the fund's positioning within the industrial sector and its focus on technological advancements that support national security. The fund's strategic allocation in these areas is expected to benefit from government contracts, increased manufacturing, and research and development initiatives, ensuring a steady stream of opportunities as global defense paradigms evolve.
Furthermore, 2026 is poised to be a pivotal year for the humanoid robotics industry, with projections indicating a substantial re-rating of supply chains as order volumes surge and manufacturing capacities rapidly scale up. This emerging sector, alongside the continuous buildout of AI infrastructure, represents a critical area of focus for the fund. Investments are concentrated in semiconductors, advanced technology hardware, and select automotive manufacturers that are integral to the development and deployment of these transformative technologies. In Japan, specifically, the fund is identifying compelling growth potential in various sectors, including industrials, AI infrastructure, semiconductor production, equipment manufacturing, e-commerce, and media. These sectors are strategically chosen for their alignment with major technological shifts and their capacity for significant innovation and market expansion, providing diverse avenues for capital growth.