- During the fourth quarter and full year of 2020, the Polen Global Growth Composite Portfolio (the “Portfolio”) returned 7.70% and 23.70% gross of fees, respectively. The MSCI All-Country World Index (the “Index”) returned 14.69% and 16.27% during those same periods.
- Since inception on January 1, 2015, the Portfolio has delivered an annualized return of 17.18% gross of fees compared to a 9.67% annualized return for the Index.
- The Portfolio trailed in the fourth quarter as vaccine hopes spurred speculation of a recovery, and financials, more cyclical businesses, and risk-on investments moved higher. While it is normal to see these rotations occur over time, they all happened in a very compressed window in 2020.
- For the full year, a combination of style and industry effects drove our outperformance. During the fourth quarter, we saw a rotation that favored financials, energy, and more cyclical holdings, areas in which the Portfolio tends to avoid.
- We believe that 2020 provided us with the opportunity to upgrade the quality of the Portfolio even further by selling four of our businesses and reallocating the proceeds into what we believe are four even higher quality, globally-scaled and dominant businesses.
- The world has seen many secular tailwinds experience what may be an inflection point. We believe the Portfolio is well-positioned for the future as many of our companies are direct beneficiaries of these secular shifts.
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