Commentary
2Q2024 - Emerging Markets Growth Commentary
In our view, valuations of what we believe to be high-quality growth companies within emerging markets remain highly attractive.
Read the full commentary and disclosures here
- Over the second quarter of 2024, the Polen Emerging Markets Growth Composite Portfolio (the “Portfolio”) returned 0.14% gross and -0.30% net of fees, respectively, versus the 5.00% return of the MSCI Emerging Markets Index (the “Index”).
- The Information Technology sector, notably companies in the Semiconductor industry, saw robust share price returns as perceived beneficiaries of Artificial Intelligence (“AI”). Conversely, the typically more stable sectors, such as Consumer Staples and Healthcare, were the weakest.
- The top contributors to relative returns over the period were Tencent Music Entertainment, FPT, and HDFC Bank. In turn, Tencent Music Entertainment, TSMC, and FPT were the top contributors to absolute returns.
- The largest detractors from relative and absolute performance were dLocal, EPAM Systems, and FEMSA.
- 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.
