4Q2022 – Global Emerging Markets Growth Commentary

We focus our attention on long-term fundamentals rather than market gyrations which can either work for or against the portfolio

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  • During the fourth quarter of 2022, the Polen Global Emerging Markets Growth Composite Portfolio (the “Portfolio”) returned 12.96% gross and 12.55% net of fees, respectively, versus the 9.70% return for the MSCI Emerging Markets Index (the “Index”).
  • Heightened geopolitical uncertainty, persistent inflation, rising rates, and concerns about slower global growth continued to be the primary sources of volatility.
  • The top absolute contributors to returns over the fourth quarter included Tencent Music, NagaCorp, and Prosus. The top absolute detractors included Mobile World Investment Corp, Mongolia Yili, and Tingyi.
  • We made several trades over the quarter, taking advantage of what we believe are significant dislocations in share prices.
  • While we believe that share prices do not always reflect business fundamentals in the near term, we are confident in our Portfolio holdings’ long-term prospects and excited about the opportunities we see in emerging markets.
  • Despite the market’s short-term preferences and gyrations, we remain focused on finding companies with competitive advantages that we believe can compound earnings and cash flows over the long term.

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