3Q2022 – Global Emerging Markets Growth Commentary

As markets become more discrete, we expect a return to fundamentals to reward our investment style

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  • Heightened geopolitical uncertainty, persistent inflation, rising rates, U.S. dollar strength, and concerns about slower economic growth remained the primary sources of volatility.
  • The Global Emerging Markets Growth Composite Portfolio (the “Portfolio”) outperformed the MSCI Emerging Markets Index (the “Index”), driven mainly by superior stock selection in the Consumer Discretionary and Information Technology sectors, which outweighed weaker selection in Communication Services.
  • The most significant contributors to performance on an absolute basis over the third quarter were Titan Company, MercadoLibre, and Karooooo. The most significant absolute detractors from performance over the quarter were Mobile World Investment Corp, Autohome, and Alibaba.
  • We didn’t make any trades over the quarter, comfortable with our current positioning.
  • Our conviction in our businesses’ competitive advantages, sustainability, and durability remains high, and we believe the Portfolio is well-positioned to navigate the future.

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