2Q 2026 5Perspectives Growth Opportunities Commentary

The Polen 5Perspectives Growth Opportunities Composite Portfolio (the "Portfolio") returned 25.16% (net of fees) in the second quarter of 2026, compared to the 17.05% return of the Russell 3000 Growth Index (the "Index"). The quarter was marked by a sharp recovery in growth equities, led by continued enthusiasm around AI infrastructure, semiconductors, power availability, and other parts of the buildout cycle, even as interest-rate expectations and geopolitical developments kept volatility elevated beneath the surface.

That combination of strong headline returns and elevated under-the-surface dispersion continued to favor portfolios that could reallocate quickly toward areas where earnings leverage and investor recognition were improving.

What Drove U.S. Growth Markets in Q2 2026?

Large-cap technology and other AI-linked businesses drove much of the advance as investors continued to reward companies with direct exposure to the buildout of compute, storage, networking, and power infrastructure. The path was not linear — markets continued to absorb shifting expectations around inflation and the policy-rate path, while late in the quarter geopolitical tensions in the Middle East added uncertainty through higher oil prices. In our view, capital largely continued to favor businesses perceived to have tangible near-term earnings exposure to the AI cycle, while more rate-sensitive, credit-sensitive, and less directly connected growth areas lagged. The result was elevated sector and stock dispersion.

Which Holdings Had the Largest Impact on the Portfolio's Relative Performance?

The top contributors to the Portfolio's relative performance were Bloom Energy, Advanced Micro Devices, and Nebius Group.

Bloom Energy is a provider of solid oxide fuel cells that play a critical role in delivering clean, reliable power at scale. Shares outperformed as a notable second-order effect of the AI buildout has been the growing need for dependable power generation outside the traditional grid. That backdrop, along with strong quarterly execution and a more constructive view on data center-related demand, supported the stock during the period.

Advanced Micro Devices contributed meaningfully as investor appetite for AI infrastructure remained strong. The company continued to benefit from enthusiasm around its role in data center CPUs and accelerators, while broader semiconductor leadership remained supported by expectations for sustained AI-related capital spending.

Nebius Group, a leading neocloud provider, was another notable contributor. Shares benefited as investors broadened their search for businesses tied to AI workloads beyond the largest platform companies, reflecting the market's willingness to reward emerging beneficiaries of the AI buildout.

The most significant relative detractors from the Portfolio's relative performance were Fastly, BWX Technologies, and Palantir Technologies.

Fastly detracted as investors remained selective within software and internet infrastructure, favoring businesses with clearer near-term AI monetization or stronger earnings momentum. BWX Technologies also detracted — the company remains tied to long-term nuclear, defense, and power-related demand, but shares lagged in a quarter in which capital moved most aggressively toward AI infrastructure and higher-beta growth areas. Palantir Technologies gave back ground as valuation sensitivity increased and investors became more selective among prior AI winners.

How Is the Portfolio's Sector Exposure Shifting?

One of the most notable shifts in the quarter was a significant increase in our exposure to Technology — a near doubling of our weight from the beginning of the period, driven by additions to our semiconductor exposures as well as neocloud providers. This was primarily funded by decreased exposures to Industrials, Financials, and Consumer Discretionary. Industrials remain a significant exposure but have declined on the margin given decreased exposure to our Military 2.0 and Space themes. Our largest relative sector overweights at quarter-end were Industrials and Consumer Discretionary, while our biggest relative underweights were Communication Services, Technology (albeit much less underweight than earlier in the quarter), and Health Care.

What Is Our Outlook?

We believe the U.S. growth universe is home to some of the most innovative and dynamic companies and entrepreneurs in the world. The accelerating pace of change continues to create opportunity, but it also increases disruption risk when leadership shifts. AI is compressing the time it takes for winners and losers to separate, which is why our process seeks to blend competitive-advantage work with thematic and technical disciplines that we believe helps us navigate the dynamic landscape.

Past performance does not guarantee future results. The commentary is not intended as a guarantee of profitable outcomes. Please see Important Disclosures in the full commentary.