SGA
Sustainable Growth Advisers
global

Global Growth

Portfolio Characteristics as of 3/31/17

Quality

Gross Margin
43.3%
Debt to EBITDA
1.9x
Net Debt/Market Cap
7.2%

Valuation

Enterprise Yield
3.6%

Growth

EPS Growth Last 3 Years
13.0%
Revenue Growth Last 3 Years
9.1%

General Characteristics

Number of Holdings
34
Weighted Average Market Cap
$113B
Active Share
93%

Portfolio Data as of 3/31/17

Performance

Absolute Returns

Earnings Growth

Sector Exposure

Risk

SGA Gross (%)
SGA Net (%)
MSCI ACWI (%)
MSCI ACWI Growth (%)
YTD 2017
1 – Year
3 – Year
5 – Year
Inception
9.6
15.0
9.3
9.7
11.3
9.4
14.0
8.3
8.7
10.3
6.9
15.0
5.1
8.4
7.1
9.1
13.0
6.3
8.9
7.9

Calendar Year

2016
2015
2014
2013
2012
2011 (Partial)
4.5
9.8
2.4
21.8
17.6
4.9
3.5
8.8
1.5
20.7
16.6
4.1
7.9
-2.4
4.2
22.8
16.1
-8.8
3.3
1.5
5.4
23.2
16.7
-7.8
Sustainable Growth Advisers, LP (“SGA”) was formed in 2003 and is a registered investment advisor under the Investment Advisers Act of 1940. SGA manages portfolios of publicly traded equity assets according to its “Large Cap Growth Equity” investment approach for pooled funds, institutions, trusts and private accounts.  SGA is an independent investment management firm that is not affiliated with any parent organization. SGA Global Growth Composite contains fee-paying large cap global growth equity portfolios under full discretionary management of the firm.   For comparison purposes the composite is measured against the MSCI ACWI Growth TR Index (Net) and MSCI ACWI TR Index (Net).   The U.S. Dollar is the currency used to express performance.

Source: Bloomberg, FactSet, Baseline, and SGA Estimates and Adjustments based upon a representative portfolio. Earnings Growth data is through 12/31/2016 (last full calendar year of reported EPS data) for SGA’s longest tenured account. SGA EPS Growth data is based upon portfolio companies’ non-GAAP operating earnings. SGA Enterprise Yield projected. Holdings/weights are subject to change without notice. The information set forth herein should not be considered to be investment advice, a recommendation to purchase or sell a specific security or as indicative of future performance.

Returns (gross and net of fees through 3/31/2017) are those of the SGA Global Growth Composite. Returns reflect the reinvestment of dividends, interest and other earnings. For interest and capital gains, SGA does not withhold taxes, for dividends SGA will withhold taxes as reported by the client’s custodian. MSCI ACWI and MSCI ACWI Growth Return is Net Total Return (MSCI Net Total Return indexes reinvest dividends after the deduction of withholding taxes). The Net Returns are calculated based upon the highest published fees. The net performance has been reduced by the amount of the highest published fee that may be charged to SGA clients, 0.90%, employing the Global Growth equity strategy during the period under consideration. Actual fees charged to clients may vary depending on, among other things, the applicable fees schedule and portfolio size. SGA’s fees are available upon request and also may be found in Part 2A of its Form ADV. SGA Global Growth composite inception is 2/1/2011. Past performance does not guarantee future results.

SGA claims compliance with the Global Investment Performance Standards (GIPS®). Disclosures regarding the composite and a complete list and description of the firm’s composites and/or a presentation that adheres to the GIPS® standards are available upon request.  “SGA – Performance Disclosure and Composite Description”.

SGA Gross - $193
SGA Net - $183
MSCI ACWI - $153
MSCI ACWI Growth - $160
Global Absolute Returns

Returns Volatility

6% higher

13.2%
SGA
12.5%
ACWI
Sustainable Growth Advisers, LP (“SGA”) was formed in 2003 and is a registered investment advisor under the Investment Advisers Act of 1940. SGA manages portfolios of publicly traded equity assets according to its “Large Cap Growth Equity” investment approach for pooled funds, institutions, trusts and private accounts.  SGA is an independent investment management firm that is not affiliated with any parent organization. SGA Global Growth Composite contains fee-paying large cap global growth equity portfolios under full discretionary management of the firm.   For comparison purposes the composite is measured against the MSCI ACWI Growth TR Index (Net) and MSCI ACWI TR Index (Net).   The U.S. Dollar is the currency used to express performance.

Source: Bloomberg, FactSet, Baseline, and SGA Estimates and Adjustments based upon a representative portfolio. Earnings Growth data is through 12/31/2016 (last full calendar year of reported EPS data) for SGA’s longest tenured account. SGA EPS Growth data is based upon portfolio companies’ non-GAAP operating earnings. SGA Enterprise Yield projected. Holdings/weights are subject to change without notice. The information set forth herein should not be considered to be investment advice, a recommendation to purchase or sell a specific security or as indicative of future performance.

Returns (gross and net of fees through 3/31/2017) are those of the SGA Global Growth Composite. Returns reflect the reinvestment of dividends, interest and other earnings. For interest and capital gains, SGA does not withhold taxes, for dividends SGA will withhold taxes as reported by the client’s custodian, affecting net returns. MSCI ACWI and MSCI ACWI Growth Return is Net Total Return (MSCI Net Total Return indexes reinvest dividends after the deduction of withholding taxes). The Net Returns are calculated based upon the highest published fees. The net performance has been reduced by the amount of the highest published fee that may be charged to SGA clients, 0.90%, employing the Global Growth equity strategy during the period under consideration. Actual fees charged to clients may vary depending on, among other things, the applicable fees schedule and portfolio size. SGA’s fees are available upon request and also may be found in Part 2A of its Form ADV. SGA Global Growth composite inception is 2/1/2011. Past performance does not guarantee future results. Return volatility data presented is standard deviation.

SGA claims compliance with the Global Investment Performance Standards (GIPS®). Disclosures regarding the composite and a complete list and description of the firm’s composites and/or a presentation that adheres to the GIPS® standards are available upon request.  “SGA – Performance Disclosure and Composite Description”.

SGA - 14%/yr
ACWI - 2%/yr
Global Earnings Growthv3

Earnings Volatility

92% lower

0.3
SGA
4.3
ACWI
Source: Bloomberg, FactSet, Baseline, and SGA Estimates and Adjustments based upon representative portfolio. Earnings Growth and Volatility data is through 12/31/2016 (last full calendar year of reported EPS data) for SGA’s longest tenured account. Earnings volatility data presented is coefficient of variation, which is standard deviation relative to the mean. SGA EPS Growth data is based upon portfolio companies’ non-GAAP operating earnings. SGA Enterprise Yield projected. Holdings/weights are subject to change without notice and should not be considered to be investment advice, a recommendation to purchase or sell a specific security or as indicative of future performance.
SGA
MSCI ACWI
+/-
Discretionary
14.0%
13.2%
+0.8%
Staples
18.6%
9.5%
+9.1%
Energy
6.0%
6.1%
-0.1%
Financials
6.0%
19.9%
-13.9%
Health Care
8.7%
11.2%
-2.5%
Industrials
8.5%
10.6%
-2.1%
Technology
31.5%
16.0%
+15.5%
Materials
0.0%
5.1%
-5.1%
Real Estate
3.2%
1.5%
+1.7%
Telecom
0.0%
3.4%
-3.4%
Utilities
0.0%
3.5%
-3.5%
Cash
3.5%
0.0%
+3.5%

Source: Bloomberg, FactSet, Baseline, and SGA Estimates and Adjustments based upon a representative portfolio. Earnings Growth data is through 12/31/2016 (last full calendar year of reported EPS data) for SGA’s longest tenured account. SGA EPS Growth data is based upon portfolio companies’ non-GAAP operating earnings. SGA Enterprise Yield projected. Holdings/weights are subject to change without notice. The information set forth herein should not be considered to be investment advice, a recommendation to purchase or sell a specific security or as indicative of future performance.

Representative portfolio weights as of 3/31/17. Portfolio holdings are subject to change daily. Under no circumstances does the information contained within represent a recommendation to buy or sell securities. It should not be assumed that investments in the securities were or will be profitable. The list provided may not represent all of the securities recommended for advisory clients. A complete list of all securities recommended for the strategy can be obtained free of charge by contacting SGA at (203) 348-4742.

USLCG Guide
Global Sharpe
Global Info
Global Downside

Source: Bloomberg, FactSet, Baseline, and SGA Estimates and Adjustments based upon a representative portfolio. Earnings Growth data is through 12/31/2016 (last full calendar year of reported EPS data) for SGA’s longest tenured account. SGA EPS Growth data is based upon portfolio companies’ non-GAAP operating earnings. SGA Enterprise Yield projected. Holdings/weights are subject to change without notice. The information set forth herein should not be considered to be investment advice, a recommendation to purchase or sell a specific security or as indicative of future performance.

Data is from 2/1/2011 to 3/31/2017. Source is FactSet SPAR. Universe is Investment Metrics Global Equity. Peer size is 334. Peer universe data and SGA data based on gross returns and do not reflect the deduction of investment advisory fees. SGA’s fees are available upon request and also may be found in Part 2A of its Form ADV. Actual fees charged to clients may vary depending on, among other things, the applicable fees schedule and portfolio size. It should not be assumed that future results will be reflective of past performance.