1Q2024 - International Growth Commentary
Our highest-conviction weightings are seeing building business momentum and accelerating earnings growth.
- During the first quarter, the International Growth Composite Portfolio (the “Portfolio”) performed in line with the MSCI ACWI ex USA Index (the “Index”), net of fees.
- Global markets continue to reflect sluggish economic growth. Data readings in many corners of the world show measured inflation moving downward but still in positive territory. The cumulative impacts of post-COVID-19 price changes remain, which is a drag on consumer spending worldwide. Some central banks began monetary policy easing cycles in recent months, while others used the media and rhetoric to adjust financial conditions.
- The largest relative contributors to the Portfolio’s performance during the first quarter were ICON, SAP, and Aon. In absolute terms, the largest contributors to performance during the quarter were ICON, SAP, and ASML.
The largest relative and absolute detractors to the Portfolio’s performance in the quarter were Teleperformance, Temenos, and HDFC Bank. - During the quarter, we modestly trimmed our position in MercadoLibre.
- Our research shows that the Portfolio holds competitively advantaged businesses whose weighted-average earnings should grow at a mid-teens rate over time. A Portfolio of well-positioned businesses supports confidence that short-term disruptions are speedbumps on the road to long-term success.
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