- SGA’s Emerging Markets Growth portfolio returned 1.5% (gross) and 1.3% (net), outperforming the 0.6% generated by MSCI EM Growth Index but trailing the broader MSCI EM Index which returned 2.3% in Q1
- The portfolio’s relative return pattern over the course of the quarter followed expectations, with the portfolio trailing initially as markets surged on continued optimism around the economic recovery, but outperforming later in the quarter as volatility and uncertainty led to weakness in the broader market
- A new position in Bank of Central Asia was initiated during the quarter; the portfolio’s position in Visa was liquidated. Several other positions were trimmed on strength and others added to on weakness
- The portfolio remains well-positioned to generate higher revenue and earnings growth than the MSCI EM Index over the coming three years with greater predictability and sustainability
The opinions expressed herein reflect the opinions of Sustainable Growth Advisers, LP and are subject to change without notice. Past performance is no guarantee for future results. This information is supplemental and complements a full disclosure presentation that can be found with composite performance. The largest contributors and detractors are determined using a ranking of the absolute contribution to portfolio return by each security held over the period under consideration. The securities referenced in the article are not a solicitation or recommendation to buy, sell or hold securities. This commentary is provided only for qualified and sophisticated institutional investors.
Results are presented gross and net of management fees and include the reinvestment of all income. 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, 0.85%, employing the Emerging Markets 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. Upon request, free of charge, SGA can provide a list of all portfolio holdings held in SGA’s Emerging Markets portfolio for the past year. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. SGA earnings growth forecasts are based upon portfolio companies’ non GAAP operating earnings. SGA Emerging Markets Growth Composite inception is 8/1/2014. Past performance is not indicative of future results.