2Q2024 - International Growth Commentary
We are encouraged by expectations of fundamental growth continuing at steady, above-market rates.
- Economic growth rates and inflation readings in most corners of the world remain positive but are evidencing decelerating trends.
- Portfolio returns in the quarter were again largely driven by our higher conviction weightings. Most of these companies are seeing a healthy combination of building business momentum, accelerating earnings growth, and reasonable valuations.
- However, a few of our larger positions in the Healthcare and Information Technology sectors saw share price weakness in the quarter, which adversely impacted returns.
- The top three contributors to the Portfolio’s relative and absolute performance in the quarter were HDFC Bank, SAP, and Teleperformance.
- The Portfolio’s top relative detractors were Sage Group, ICON, and Aon. The top absolute detractors were Sage Group, ICON, and Adidas.
- During the quarter, we initiated a new position in Tokyo Electron with the proceeds from the sale of our position in Lasertec.
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