- During the first quarter of 2019, the Polen Global Growth Composite Portfolio (the “Portfolio”) returned 16.26% gross of fees versus 12.18% for the MSCI All Country World Index (the “Index”), outperforming the benchmark by 408 basis points during the quarter.
- Since inception on January 1, 2015, the Portfolio has delivered an annualized investment return of 14.41% compared to a 6.88% annualized return from the Index. Thus, the Portfolio has on average outperformed the Index by 753 basis points per year since inception. The Portfolio’s cumulative return since inception is 77.21% compared to a 32.68% cumulative return from the Index.
- The first quarter of 2019 saw a reversal of the broad-based selloff that occurred during the fourth quarter of 2018, with broad-based appreciation that cut across all geographies and
industries. Concerns prevalent in the previous quarter around slowing growth in China, tepid to slowing growth in Europe, and the view that growth would decelerate in the U.S. seemed to give way to revived optimism spurred by the abrupt change in U.S. Federal Reserve policy direction and the expectation of a U.S.-China trade deal.
- Our higher weighting in the Information Technology and Consumer Discretionary sectors, as well as our outperformance within those sectors, drove overall performance. While investments in the Industrials and Consumer Staples sectors contributed to positive performance, they trailed their respective sectors. The Portfolio’s underlying earnings growth
– the focus of our fundamental research – remained strong.
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