3Q2025 - Emerging Markets Growth Commentary
More orthodox economic policy has left the balance sheet of Emerging Markets much healthier than their Developed counterparts, which should enable greater economic capacity to respond to geopolitical and macroeconomic turmoil.
- Over the period, the Polen Capital Emerging Markets Growth Composite Portfolio returned 7.58% net of fees, underperforming the Index’s return of 10.64%.
- The top individual contributors to relative returns in the third quarter were CATL, Prosus, and Accton. The top contributors to absolute returns were CATL, TSMC, and Prosus.
- The largest detractors from relative performance were InPost, Alibaba (zero weight), and Tencent. The largest detractors from absolute returns were InPost, Hugel, and Dino Polska.
- Over the quarter, we have generally allocated capital away from companies that are facing more challenged operating environments, whether it be from a macro-economic standpoint or a geo-political one.
- We continue to be optimistic about the long-term future of Emerging Markets, home to 86% of the world’s population today.