4Q2021 – Global SMID Company Growth Commentary

Our goal is simple—we aim to own the best of the best

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  • Financial markets remained resilient in 2021 despite numerous concerns related to global supply chains, price inflation on various goods and services, regulatory uncertainty in China, and the continued spread of the Delta and Omicron COVID-19 variants.
  • Over the fourth quarter of 2021, the Polen Global SMID Portfolio (the “Portfolio”) returned -1.28% gross and -1.76% net of fees, versus the 3.30% return for the MSCI ACWI SMID Capitalization Index (the “Index”).
  • For the six-month period since inception, the Portfolio returned 4.12% and 3.61% gross and net of fees, respectively, versus a 2.08% return for the Index.
  • The top absolute contributors to the Portfolio’s performance since inception included Endava, Globant, and Benefit One. The most significant detractors from performance included Restoration Hardware (RH), Cybozu, and Revolve Group.
  • We believe that our Portfolio will deliver earnings growth in excess of 20% annually over the next five years. This is only possible because our research shows that the companies we own are at the forefront of change in incredibly dynamic industries, which should allow them to deliver durable, profitable growth.

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