- The portfolio outperformed the MSCI ACWI benchmark in Q1, but trailed the ACWI Growth Index as longer duration growth companies rallied
- Developed markets outperformed emerging markets; European markets performed best as investors bet that the EU may avoid recession; the U.S. market was boosted by renewed hopes for a Fed pivot amid signs of progress on inflation and signs of banking industry stress
- Key contributors for the quarter were Salesforce, MercadoLibre, and Amazon which were among the largest detractors in 2022; XP, Recruit, and Mengniu Dairy were the largest detractors
- Initiated new positions in Atlassian and Canadian Pacific Kansas City and liquidated positions in Dassault Systemes, Recruit, and XP due to forced attrition; trimmed positions in Salesforce, MercadoLibre and FleetCor on strength and bought more shares in Workday, Aon, S&P Global, Intuitive, and Linde on weakness
- Global economic growth and corporate profits continued to slow despite short-term optimism, and we expect that to continue and be beneficial for the more predictable and sustainable growers in SGA’s portfolios
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.