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- During the first quarter of 2023, the Polen Emerging Markets Growth Composite Portfolio (the “Portfolio”) returned 7.61% gross and 7.23% net of fees, respectively, versus the 3.96% return for the MSCI Emerging Markets Index (the “Index”).
- Interest rate policy, developed market inflation, and turmoil in developed market banks were sources of volatility, causing sentiment to swing significantly in the period.
- The top contributors to relative returns over the quarter included Wizz Air, Momo.com, and MercadoLibre. These were also the top contributors on an absolute basis. The top relative detractors included NagaCorp, Mobile World, and Mr Price Group. On an absolute basis, the top detractors were the same.
- While we believe that share prices do not always reflect business fundamentals in the near term, we are confident in our Portfolio holdings’ long-term prospects and excited about the opportunities we see in emerging markets.
- Despite the market’s short-term preferences and gyrations, we remain focused on finding companies with competitive advantages that we believe can compound earnings and cash flows over the long term.