3Q2022 – International Growth Commentary

We continue to run the Portfolio with a focus on robust and profitable businesses

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  • Market strength in July gave way to weakness through August and September as markets gained momentum to the downside into the quarter’s end, sparing no sectors.
  • The International Growth Composite Portfolio (the “Portfolio”) outperformed the MSCI ACWI ex-USA Index (the “Index”), as an underweight to financials and industrials and a zero-weighting in materials contributed to relative performance, while the healthcare sector was the primary laggard.
  • The most significant contributors to performance on an absolute basis over the third quarter were MercadoLibre, Globant, and Experian. The most significant absolute detractors from performance over the quarter were Adidas, ICON, and Tencent.
  • During the quarter, we added to our existing positions in Kering, SAP, and Evolution, where we believe the fundamental outlook remains robust and recent share price declines offer attractive entry prices for long-term investors.
  • While uncertain and volatile markets can signal slower near-term economic growth, the divergence between business fundamentals and stock prices has created attractive entry points for investment in companies with outsized long-term return potential.

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