SGA
Sustainable Growth Advisers
international

International Growth

Portfolio Characteristics as of 6/30/17

Quality

Gross Margin
34.5%
Debt to EBITDA
2.3x
Net Debt/Market Cap
10.1%

Valuation

Enterprise Yield
3.0%

Growth

EPS Growth 2016
7.7%
Revenue Growth 2016
9.7%

General Characteristics

Number of Holdings
30
Weighted Average Market Cap
$71B
Active Share
95%

Portfolio Data as of 6/30/17

Performance

Absolute Returns

Geographic Exposure

Sector Exposure

Risk

SGA Gross (%)
SGA Net (%)
MSCI ACWI ex-USA (%)
MSCI ACWI Growth ex-USA (%)
YTD 2017
1 - Year
2 - Year
Inception
20.9
18.4
7.3
6.6
20.3
17.2
6.3
5.5
14.1
20.5
4.0
2.9
17.4
17.4
4.9
4.0

Calendar Year

2016
2015 (Partial)
0.6
-4.6
-0.4
-5.4
4.5
-10.3
0.1
-6.8
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 International Growth Composite contains an SGA proprietary non-fee paying large cap international growth equity portfolio under full discretionary management of the firm. For comparison purposes the composite is measured against the MSCI ACWI ex-USA TR Index (Net) and MSCI ACWI Growth ex-USA 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. Debt to EBITDA is Total Debt to Forward One Year EBITDA. 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 6/30/2017) are those of the SGA International Composite. Composite inception is 3/1/2015. 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 ex-USA and MSCI ACWI Growth ex-USA 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, 1.00%, employing the International 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. 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 - $116
SGA Net - $113
MSCI ACWI ex-USA - $107
MSCI ACWI Growth ex-USA - $110
INTL Returns Graph
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 International Growth Composite contains an SGA proprietary non-fee paying large cap international growth equity portfolio under full discretionary management of the firm. For comparison purposes the composite is measured against the MSCI ACWI ex-USA TR Index (Net) and MSCI ACWI Growth ex-USA 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. Debt to EBITDA is Total Debt to Forward One Year EBITDA. 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 6/30/2017) are those of the SGA International Composite. Composite inception is 3/1/2015. 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 ex-USA and MSCI ACWI Growth ex-USA 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, 1.00%, employing the International 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. 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”.

By Revenue
INTL Revenue Chartv2
By Domicile
INTL Domicilev2

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. Debt to EBITDA is Total Debt to Forward One Year EBITDA. 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 6/30/17. 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. A complete list of all securities recommended for the strategy can be obtained free of charge by contacting SGA at (203) 348-4742.

SGA
MSCI AWI ex-USA
+/-
Discretionary
14.5%
13.8%
+0.7%
Staples
31.3%
9.9%
+21.4%
Energy
4.8%
5.5%
-0.7%
Financials
16.4%
26.4%
-10.0%
Health Care
8.5%
8.3%
+0.2%
Industrials
3.3%
11.2%
-7.9%
Technology
14.4%
9.9%
+4.5%
Materials
3.0%
7.2%
-4.2%
Real Estate
0.0%
0.0%
0.0%
Telecom
0.0%
4.2%
-4.2%
Utilities
0.0%
3.6%
-3.6%
Cash
3.8%
0.0%
+3.8%

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. Debt to EBITDA is Total Debt to Forward One Year EBITDA. 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 6/30/17. 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
INTL Sharpe
INTL Information
INTL 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. Debt to EBITDA is Total Debt to Forward One Year EBITDA. 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 3/1/2015 to 6/30/2017. Source is FactSet SPAR. Universe is Investment Metrics International Large Cap Equity. Peer size is 364. 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.