Polen International Growth Portfolio Q1 2025 Commentary

2025-04-23 08:10:00 ET

Summary

• The first quarter saw heightened volatility and a reversal in style leadership.
• In the first quarter of 2025, the Portfolio returned 0.31% gross of fees and 0.03% net of fees.
• The insurance industry was among the best performers in 1Q25, and Aon was no exception.

Summary

• The first quarter saw heightened volatility and a reversal in style leadership—our concentrated quality-growth approach initially outperformed due to strong earnings momentum but was ultimately challenged by weakness in select technology and healthcare holdings and our underweight to developed market banks, leading to returns lagging the Index.
• In the first quarter of 2025, the Polen Global Growth Portfolio returned 0.31% gross of fees and 0.03% net of fees. This compares to 5.23% for the MSCI ACWI ex USA Index (the “Index”).
• The top three contributors to the Portfolio’s relative performance in the first quarter were Aon ( AON ), TSMC ( TSM )(not owned), and SAP ( SAP ). Top contributors to absolute performance included Aon, SAP, and MercadoLibre ( MELI ).
• The Portfolio’s top relative detractors were Globant ( GLOB ), ICON ( ICON ), and Novo Nordisk ( NVO ). The top absolute detractors were Globant, Novo Nordisk, and ICON. In the first quarter, we added three new positions and eliminated one. We also added to seven existing positions and trimmed six. New positions included Adyen ( ADYYF ), Lonza Group ( LZAGF ), and Tencent Music Entertainment ( TME ). We eliminated our position in Unilever ( UL ).
• Despite recent market challenges, we remain confident that our focus on owning high-quality, high-growth international businesses positions the Portfolio well for long-term outperformance—especially as shifting macroeconomic and currency trends may favor non-U.S. equities after a prolonged period of U.S. market and dollar strength.

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