1Q2024 - Emerging Markets Growth Commentary

We stay focused on our portfolio companies' long-term value propositions, competitive advantages, growth opportunities, and potential earnings power.

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  • Over the first quarter of 2024, the Polen Emerging Markets Growth Composite Portfolio (the “Portfolio”) returned 1.48% gross and 1.25% net of fees, respectively, versus the 2.37% return of the MSCI Emerging Markets Index (the “Index”).
  • Shifting expectations for the timing of interest rate cuts influenced sector and country performance. However, the number of beneficiaries of artificial intelligence continues to rise.
  • The top contributors to relative return over the period were Tencent Music Entertainment, NetEase, and FPT. The top contributors to absolute return were TSMC, Tencent Music Entertainment, and NetEase.
    The largest individual detractors from relative and absolute performance were dLocal, HDFC Bank, and Dino Polska.
  • While acknowledging that short-term share prices may not always reflect business fundamentals, we maintain confidence in our portfolio holdings’ long-term prospects and remain excited about the opportunities in emerging markets.
  • Our focus remains on identifying companies with competitive advantages that we believe can generate long-term earnings and cash flow growth, regardless of commodity fluctuations or economic cycles.

Read the full commentary and disclosures here

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