3Q 2026 5Perspectives Growth Opportunities Commentary

During the third quarter of 2026, the Polen 5Perspectives Growth Opportunities Composite Portfolio (the “Portfolio”) returned -6.22% net of fees, compared with the 0.45% return of the Russell 3000 Growth Index (the “Index”). Markets opened the quarter with a sharp, mechanically driven selloff in AI-related equities. They recovered into mid-August before a hawkish pivot from the Federal Reserve and a 25 basis point rate hike in September introduced more volatility and kept things range-bound.

How did the Polen 5Perspectives Growth Opportunities strategy perform in 3Q 2026?

The Portfolio returned -6.22% net of fees in the third quarter of 2026, compared with the 0.45% return of the Index. The top contributors to relative performance were Twist Bioscience, CrowdStrike and Micron Technology (underweight). The most significant detractors from relative performance were Argan, Microsoft (underweight) and Bloom Energy.

Performance shown represents results achieved at prior firms. The Polen 5Perspectives Growth Opportunities strategy (the “Strategy”) began in October 2007 and was managed by Cupps Capital until October 2016 at which time it was transitioned to Advisory Research Investment Management. In March 2024, it transitioned to Bosun Asset Management, and subsequently in June 2025, it transitioned to Polen Capital. Andrew Cupps has served as the portfolio manager of the Strategy since inception. Mr. Cupps has been supported in his role as portfolio manager by various individuals, including Kevin Leitner and Chris Bush. Mr. Leitner and Mr. Bush have worked on the Strategy since inception. At all times during his tenure as portfolio manager, Mr. Cupps has had ultimate decision-making authority with respect to the Strategy. Mr. Cupps, Mr. Leitner and Mr. Bush joined Polen Capital on June 30, 2025. Returns are presented gross and net of management fees and include the reinvestment of all income. Historical net of fee performance was calculated using either actual management fees or highest fees. During certain periods of the track record, net of fee performance was calculated using actual management fees, while the highest fee was used during others. Beginning October 31, 2016, net of fee performance is being calculated using highest fee. Prior period net of fee performance was calculated using actual management fees plus fund expenses (where applicable). After July 1, 2025, net of fee performance was calculated using either actual management fees or highest fees for fund structures. Current performance may be lower or higher. Periods over one-year are annualized. Past performance is not indicative of future results. Please reference the GIPS Report which accompanies the full commentary. The commentary is not intended as a guarantee of profitable outcomes. Any forward-looking statements are based on certain expectations and assumptions that are susceptible to changes in circumstances. Opinions and views expressed constitute the judgment of Polen Capital as of the date herein, may involve a number of assumptions and estimates which are not guaranteed, and are subject to change.

What happened in markets during the quarter?

In the team’s view, the third quarter of 2026 was a great example of markets pushing investors out of their comfort zones. It tested the bounds of their convictions and challenged them to separate signal from noise amid a firehose of news and turbulent price moves.

The quarter opened with a meaningful air pocket in AI-related equities. A wave of hyperscaler earnings reports raised fresh questions about whether enormous AI-related capital expenditures would generate commensurate returns. Crowded positioning, elevated leverage and forced selling quickly compounded these concerns. The result was one of the sharpest, most concentrated selloffs the AI trade had experienced since the current cycle began in 2023, with semiconductor and AI infrastructure-related stocks bearing the brunt of the decline.

As July came to a close and it became more apparent how much of the selloff was mechanically driven, sentiment began to stabilize. Continued evidence of robust hyperscaler spending plans, resilient enterprise demand and strong earnings results helped restore confidence in the AI investment cycle. The Russell 3000 Growth Index experienced a significant rebound into mid-August.

That strength proved short-lived as attention pivoted sharply toward inflation and monetary policy. Hawkish commentary from new Federal Reserve Chair Kevin Warsh raised the odds of a 25 basis point rate hike, which ultimately came in mid-September.

The team says it has worked very hard over the course of 26 years to build a robust process for navigating this kind of volatility. In the team’s view, drawing on three disciplines—fundamental, thematic and technical—provides an opportunity, especially in moments when the signal can become clouded by noise.

The team believes the quarter’s volatility largely reflected a resetting of elevated positioning and expectations that had built during the first half of the year. In its view, this was not a broad deterioration in fundamentals across AI infrastructure and its adjacent themes, and the underlying demand drivers across much of the ecosystem remain supportive.

What helped performance?

Twist Bioscience was a top contributor to the Portfolio’s relative performance in 3Q 2026. The company provides synthetic DNA and other next-generation genomic products used across drug discovery, diagnostics and data storage applications. Shares outperformed following another quarter of record revenue and accelerating growth, driven in part by increasing adoption of the company’s platform for AI-enabled drug discovery. Management also raised full-year guidance, reinforcing investor confidence in the durability of the company’s growth trajectory as it approaches profitability.

CrowdStrike provides cloud-native cybersecurity software, with its Falcon platform protecting endpoints, cloud workloads, identity and data. Shares outperformed after the company reported record net new annual recurring revenue (ARR) of $333 million, up 51% year-over-year. It also raised its full-year net new ARR growth outlook by 630 basis points. The stock jumped by the most in more than two years on the report.

Micron Technology (underweight) is one of the world’s largest producers of DRAM and NAND memory, including the high-bandwidth memory used in AI accelerators. The Portfolio’s underweight position contributed to relative performance as shares underperformed amid a sharp selloff in memory stocks. In July, a broader unwind in AI memory stocks pushed several leading memory companies significantly below their recent highs. This came despite record fiscal fourth-quarter revenue of $54.2 billion and guidance for further sequential growth.

What hurt performance?

Argan was among the most significant detractors from the Portfolio’s relative performance in 3Q 2026. The company provides engineering, procurement and construction services for power generation facilities, including natural gas-fired plants, as well as industrial construction and telecommunications infrastructure services. Shares fell sharply after the company reported record fiscal second-quarter results. Investors focused instead on a decline in backlog to $2.5 billion from $2.9 billion, as no major new power project was awarded in the period.

Investors also focused on Argan’s Industrial segment margins, which fell short of expectations due to cost overruns on a couple of non-data-center projects. With the stock having run up considerably earlier in the year, attention turned to award timing and the durability of margins.

Microsoft (underweight) is a global provider of cloud computing, productivity software and AI services, including Azure, Microsoft 365 and Copilot. The Portfolio’s underweight position detracted from relative performance as shares outperformed, gaining roughly 39% in the quarter. It was the stock’s best quarter since 1991, and it recovered much of a first-half selloff. Fiscal fourth-quarter results sparked the rally. Azure and other cloud services revenue grew 43% year over year, Azure surpassed $100 billion in annual revenue for the first time, and Microsoft 365 Copilot crossed 30 million paid seats. Management also noted that customer demand continued to exceed available capacity, which eased concerns about the returns on AI spending.

Bloom Energy manufactures solid-oxide fuel cell systems that provide onsite power to data centers and other commercial and industrial customers. Shares were highly volatile during the quarter, falling more than 50% from their late-June record through late July. The decline came amid valuation concerns and the timing of second-half revenue conversion, as well as a short-seller report that questioned the company’s accounting and supply of a key material, allegations the company disputed.

The stock subsequently recovered much of that decline following record second-quarter results, including revenue growth up 166% year-over-year and an increase in full-year guidance. In the team’s view, continued investor interest in the potential power requirements associated with AI data centers also supported sentiment toward the shares.

How did the team change the Portfolio?

In 3Q 2026, the salient changes to positioning were increased exposure to Technology and decreased exposure to Industrials. The reduced Industrials exposure came as the team pared back exposures within the Electrification and AI infrastructure-related themes.

The team still sees a meaningful opportunity for these picks and shovels “suppliers” to the AI build out. However, it has increasingly used these positions as a source of funds to add to a mix of Semis and Software-related businesses within Technology. As a result, Technology remains the Portfolio’s largest sector exposure, followed by Industrials and Consumer Discretionary in roughly equal measure.

What is the team’s outlook?

The team describes the volatility of 3Q 2026 as consistent with what it has come to think of as “the pause that refreshes.” In its view, the volatility largely reflected a resetting of elevated expectations and related positioning built during the first half of the year, rather than a broad deterioration in fundamentals across AI infrastructure and its adjacent themes. The team believes the underlying demand drivers across much of the ecosystem remain supportive.

The team says its primary objective has always been optimizing around performance. Given the conditions present today, it seeks to best position the Portfolio to pursue attractive long-term performance.

The team believes it is in the early stages of seeing a transition from the “suppliers” of AI, which provide infrastructure and components, to the “appliers,” the businesses leveraging AI to make their core businesses more productive and introduce new products and services. While the team sees meaningful opportunities for the suppliers in the quarters and years ahead amid this AI capital expenditure (capex) cycle, it believes the thematic timeliness—a distinct element of its process—has changed since Spring of this year. As a result, it has incrementally shifted its positioning toward the “appliers,” a powerful theme it believes has a more meaningful growth runway.

Taking a step back, the team believes the US is home to some of the most innovative, dynamic growth companies in the world. The team says it has found that its performance is fueled by the accelerating pace of change, and that orienting around this has provided opportunities largely irrespective of the prevailing market environment. It has sought to build a process that harnesses change and disruption to its advantage. Amid the paradigm shift experienced with AI in recent years, the team says this has only become more important, and it expects that to continue into the future.

Who manages the Polen 5Perspectives Growth Opportunities strategy?

The Polen 5Perspectives Growth Opportunities strategy is led by Drew Cupps, Head of Team, Portfolio Manager & Analyst, who has 34 years of industry experience.