4Q2022 – International Growth Commentary

We believe a confluence of factors makes international allocations more compelling than at any time since the Global Financial Crisis

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  • Geopolitical uncertainty, persistently high inflation, rising rates, and concerns about slower global growth continued to be the main sources of volatility throughout the year.
  • The International Growth Composite Portfolio (the “Portfolio”) trailed the MSCI ACWI ex US during the quarter and the year as interest rate movements negatively impacted growth stocks across the Portfolio and our coverage universe.
  • The top absolute contributors to the Portfolio’s performance over the fourth quarter included SAP, AON, and Evolution AB. The most significant absolute detractors from performance included Tencent, Temenos, and Globant.
  • We initiated a new position in HDFC Bank and added to existing positions in Unilever, Shopify, and Bunzl. By contrast, we eliminated two positions, Tencent and Shenzhou International, and trimmed Accenture.
  • The Portfolio continues to hold a concentrated collection of quality companies. With valuations reset lower across the Portfolio, prospects for solid earnings growth over the coming three to five years are compelling.

Read the full commentary & disclosures here →