3Q2018 – Global Growth Commentary

  • During the third quarter of 2018, the Polen Global Growth Composite Portfolio (the “Portfolio”) returned 5.69% gross of fees versus 4.29% for the MSCI All Country World Index (the
    “Index”), outperforming the benchmark by 140 basis points during the quarter. Year to date, the Portfolio returned 17.03% gross of fees versus 3.83% for the Index.
  • Since inception on January 1, 2015, the Portfolio has delivered an annualized investment return of 15.74% compared to 8.46% annualized return from the Index. Thus, the portfolio has on average outperformed the Index by 728 basis points per year since inception.
  • From a geographic perspective, significant outperformance in North America was the biggest contributor to our absolute and relative returns during the quarter. From a sector perspective, our consumer discretionary holdings delivered the most favorable results. Our information technology holdings were also a significant driver of our overall returns given our heavy exposure to the sector.
  •  Emerging markets remained under pressure as a result of central bank activity and a strengthening U.S. dollar. China, in particular, experienced significant pressure as a result of increasing trade tensions with the United States. Our investments in Alibaba Group Holdings Inc. and Tencent Holdings Ltd., both domiciled in China, were among our worst
    performers during the quarter.
  • At the end of the third quarter, “Communication Services” was introduced as a new index sector. This significantly reduced the Portfolio’s information technology sector weight from slightly more than 50% to approximately 35%.

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