Commentary
3Q2024 - Emerging Markets Growth Commentary
We view emerging markets growth as potentially outpacing developed markets, as high-quality growth companies remain attractively valued compared to historical norms and peers. Recent developments in China may further support momentum for the asset class.
Read the full commentary and disclosures here
- Over the third quarter of 2024, the Polen Emerging Markets Growth Composite Portfolio (the "Portfolio") returned 11.19% gross and 10.81% net of fees, respectively, versus the 8.72% return of the MSCI Emerging Markets Index (the "Index").
- Emerging markets were mainly boosted by China towards the end of the period, with continued positive momentum in India.
- The Consumer Discretionary and Financials sectors drove most of the Index return, primarily driven by the strength of the large Chinese e-commerce companies, banks, and insurers.
- The Information Technology sector pulled back, with the Korean semiconductor-related companies notable laggards. The Energy sector was also weak on a softer oil price.
- The receipt of proceeds from the sale of the Moscow Exchange and our positions in Meituan and Yum China were the most significant individual relative contributors to returns over the quarter.
- The largest relative detractors from returns were Wizz Air, Tencent Music Entertainment, 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 emerging market opportunities. Recent developments in China could also help boost investor sentiment.