2Q2021 – International Growth Commentary

Our focus remains on positioning the Portfolio for superior long-term earnings growth rather than shorter-term market preferences.

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  • During the second quarter of 2021, the Polen International Growth Composite Portfolio (the “Portfolio”) returned 5.57% gross of fees. The MSCI All Country World Index (ex-US) (the “Index”) returned 5.47%.
  • Pro-cyclical factors—which contrast the Portfolio’s focus on secular, durable growth—drove market returns higher since November 2020 but seemed to subside during the quarter.
  • Short-term differences in performance can work either for or against the strategy. That said, our focus remains on positioning the Portfolio for superior long-term earnings growth rather than shorter-term market preferences.
  • The Portfolio performed largely in line with the Index. An uptick in regulatory action in China dampened the relative outperformance delivered by other positions in the information technology and consumer discretionary sectors.
  • During the quarter, we initiated new positions in ASML, MercadoLibre, and Shopify. We added to our investment in Adidas, and we trimmed our positions in Accenture, CSL, Walmart de Mexico, Bunzl, and Inditex.
  • Ultimately, we seek to invest in companies that contribute to consistent earnings growth across market cycles. This philosophy, in our view, results in a Portfolio built to compound earnings growth faster than the Index.

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