Continued Challenges in Grab Holding’s (GRAB) Newer Fintech Segment Weighed on its Performance

Core Insights - SGA's Emerging Markets Growth Strategy experienced a divergence in performance during Q4 2025, with the portfolio returning 0.8% (Gross) and 0.6% (Net), underperforming the MSCI EM Net TR Index and MSCI EM Growth Net TR Index returns of 4.7% and 3.3% respectively [1] - For the full year 2025, the portfolio achieved returns of 23.8% (Gross) and 22.8% (Net), lagging behind the indexes which returned 33.6% and 34.3% respectively [1] - The portfolio anticipates annual revenue growth of 13% and earnings growth of 16% over the next three years [1] Company-Specific Insights - Grab Holdings Limited (NASDAQ:GRAB) was identified as a notable detractor in the Q4 2025 performance, with a one-month return of -3.64% and a 14.72% decline over the past twelve months, while its market capitalization stands at $17.288 billion [2] - Despite solid Q3 results and an increase in full-year revenue guidance, Grab faced challenges in its fintech segment, which saw increased operating losses due to higher provisions [3] - Management projects the fintech segment to reach breakeven by the second half of 2026, although there is uncertainty regarding this timeline [3] - A potential merger with competitor GoTo could enhance Grab's user base and fintech opportunities, while its delivery and ridesharing businesses are expected to benefit from predictable growth and margin expansion [3] - Grab is projected to achieve high-teens revenue growth over the next three years as it improves efficiency and expands monetization opportunities [3]