4Q2021 Polen Capital global growth commentary
In this video Portfolio Manager Jeff Mueller discusses the key themes impacting investment markets through the December 2021 quarter. New virus variants, additional lockdowns in some parts of the world, disruptive supply chain issues, a sharp increase in inflation, a shift in monetary policy, expectation for rising interest rates, and regulatory changes in China were some of the most significant headwinds to emerge.
Despite these challenges, the Global Growth portfolio delivered positive results for the fourth quarter and full year, broadly in line with the MSCI All-Country World Index. From its inception (15 March 2021) to 31 December 2021, the Polen Capital Global Growth Fund increased by 20.42 per cent, after expenses. This led to out-performance against its benchmark by 0.41 per cent over the nine and a half months under review.
Information technology was a notable performer throughout the year. In terms of individual companies, Microsoft, Accenture, and ICON were the top absolute contributors during the quarter. Meanwhile, Alphabet, Microsoft, and Accenture represented the top performers during the full year.
Microsoft continued to deliver robust results during both the quarter and year, benefitting from its competitively advantaged position at the intersection of multiple secular headwinds. Alphabet shares also appreciated, helped by a rebound in ad spending in 2021. Accenture continued to generate unprecedented growth and is likely executing at the highest levels in its history as a public company, recording three straight quarters of reported revenue growth over 20 per cent.
Looking Ahead
While the Polen Capital team takes a careful approach, they have great confidence in their investment discipline and the businesseses owned in the portfolio.
Thank you for your interest in Polen Capital and the Global Growth strategy. Please feel free to contact us with any questions.
Established in 1979, Polen Capital is a high conviction growth investment manager with offices in the US and UK. Polen has been dedicated to serving investors by providing concentrated portfolios of the highest-quality companies for more than three decades. The firm’s established team manages US$71 billion in total assets and their longest-running flagship investment strategy has delivered on average double digit annual returns for more than 30 years.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
