- Portfolio trailed its MSCI All Country World (ACWI) benchmark in Q1 as value-oriented stocks outperformed; a lack of exposure to Energy had a significant impact; portfolio outperformed the MSCI All Country World Growth benchmark (ACWI Growth)
- FleetCor, CP All, and Medtronic were the largest positive contributors to performance; Meta Platforms, PayPal, and Recruit detracted most
- Stock selection in the Emerging Markets contributed positively while selection in developed markets, particularly the U.S., detracted
- Took advantage of increased market volatility to upgrade portfolio growth, initiating new positions in Intuit and MSCI while liquidating positions in Meta Platforms, Regeneron, and IHS Markit
- Portfolio forecast to generate 19% earnings growth over the next three years compared to 8% for the ACWI with better business quality and predictability
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 GIPS Report 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.
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 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. 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. Upon request, free of charge, SGA can provide a list of all portfolio holdings held in SGA’s Global Growth portfolio for the year. Policies for valuing investments, calculating performance, and preparing GIPS Reports are available upon request. SGA’s earnings growth forecast data is based upon portfolio companies’ Non-GAAP operating earning.