iM Global Partner and Polen Capital have teamed up to launch two active, high-conviction international growth ETFs.
The Polen Capital International Growth. (PCIG ) and the Polen Capital China Growth. (PCCE ), were launched on the NYSE on March 15. iMGP US Fund Management serves as the investment advisor for both PCIG and PCCE, with Polen acting as the subadvisor.
PCIG and PCCE join the Polen Capital Global Growth ETF (PCGG ), Polen’s inaugural ETF, launched in 2023. The firm said in a statement it plans to launch two additional ETFs soon and will bolster an extensive suite of funds in response to client demand for accessing these strategies within the active ETF wrapper.
See more: “iMGP and Polen Capital Launch Active Global Growth ETF”
“In 2024, there has been growing demand for actively managed ETFs as advisors gain comfort with security selection and tax efficiency benefits. We believe the added supply will be well received," said Todd Rosenbluth, head of research at VettaFi.
PCIG’s and PCCE’s active management will deliberately lean into concentration as they seek to provide long-term capital appreciation. The firm believes investing in a concentrated portfolio of high-quality businesses with above-average earnings growth offers the potential for outperformance over time.
“In our opinion, our active approach is a differentiator, particularly when compared to most ETFs,” Polen said in a statement to VettaFi. “We focus on selecting only 20-40 of what we believe are the best companies within our investment universe, so we offer something meaningfully different from your typical passive or index-like ETF.”
Additionally, both strategies operate in markets with ample opportunity for Polen to add value as active managers, according to the firm.
Under the Hood of the New Active International Growth ETFs
PCIG invests in a concentrated portfolio of competitively advantaged international businesses with sustainable, above-average earnings growth. Polen has managed International Growth strategies since 2017.
Meanwhile, PCCE invests in common stock companies that have either the predominant part of their assets in, their revenues derived from, or substantial business in, the People’s Republic of China (“PRC”) and/or Hong Kong. Polen Capital has managed China Growth strategies since 2007.
PCIG and PCCE will be available through iM Global Partner Fund Management’s U.S. mutual fund and ETF platform, leveraging its extensive relationships and tools for broader distribution.
The two international ETFs can enhance a portfolio’s diversification, providing exposure to what the firm sees as sustainable growth business in international markets and China. These new ETFs are suitable options for core allocations to international and Chinese markets and can complement existing allocations, according to Polen.
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