- SGA’s Emerging Markets Growth portfolio returned 18.1% (gross) and 17.8% (net) in Q4 2020 compared to 19.7% for its primary benchmark the MSCI Emerging Markets Index; during the same period the MSCI Emerging Markets Growth Index returned 16.8%. For the year 2020, the portfolio returned 31.2% (gross) and 29.8% (net) compared to 18.3% for the MSCI Emerging Markets Index and 31.3% for the MSCI Emerging Markets Growth Index
- Emerging markets outperformed Developed markets for the quarter as investor sentiments around the global economic recovery improved given positive COVID-19 vaccine developments. A weakening U.S. dollar also benefited stocks in international and emerging markets
- Portfolio turnover was below average during the quarter, with a position in Universal Robina liquidated and no new positions initiated
- 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 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. SGA earnings growth forecasts are based upon portfolio companies’ non-GAAP operating earnings. SGA Emerging Markets Growth Composite inception is 8/1/2014.
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, 1.1%, 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. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. 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. Past performance is not indicative of future results.