- During the fourth quarter of 2018, the Polen Global Growth Composite (the “Portfolio”) returned -11.87% gross of fees versus -12.75% for the MSCI All Country World Index (the
“Index”), outperforming the benchmark by 88 basis points during the quarter. For the full year, the Portfolio returned 3.14% gross of fees versus -9.41% for the Index, outperforming the benchmark by 1,255 basis points.
- Since inception on January 1, 2015, the Portfolio has delivered an annualized investment return of 11.11% compared to a 4.29% annualized return from the Index. Thus, the Portfolio has on average outperformed the Index by 682 basis points per year since inception.
- The fourth quarter consisted of a broad-based sell-off that cut across all geographies and industries. During this period, future growth expectations were tempered by slowing growth in China, tepid to slowing growth in Europe, and the view that growth in the United States would decelerate as one-time tax reform benefits fade.
- For the full year, our concentration in the Consumer Discretionary, Healthcare and Technology sectors, together with outperformance within each of those sectors, drove our overall
outperformance. We would also highlight the strong underlying earnings growth of our Portfolio for the year.
- Since inception, the Portfolio has now protected capital on two occasions by over 1,200 basis points during years when the Index was negative. We believe this is results from our disciplined approach to owning a concentrated portfolio of only the best growth companies.
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