- The portfolio generated attractive absolute and relative returns in Q2 amid rising uncertainty over the future pace of global economic growth
- Stock selection was strong across most sectors and was the main driver of the portfolio’s outperformance; sector allocations also contributed positively to results
- Selection in the Consumer Staples and Information Technology sectors contributed most while selection in the Health Care and Communication Services sectors detracted
- Regionally, stock selection in the Non-U.S. Developed Markets contributed the most to the portfolio’s outperformance, with stocks from the United Kingdom, Japan and Germany having the largest impact
- Positions in Fast Retailing, FleetCor and Equinix were trimmed on strength and we added to positions in Abbott, Alibaba, Booking Holdings, Alphabet and Novo Nordisk on weakness; the portfolio’s position in Regeneron was reduced reflecting rising concerns
- We are pleased to announce that Jon Richter has joined our research team, and that Kishore Rao will join our U.S. equity portfolio management team effective December 31st 2019 given the strong contributions he has made in research and portfolio management since joining SGA in 2004 and co-managing our Emerging Markets Growth portfolio since its inception in 2014
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.
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, 0.90%, 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. 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 portfolios, calculating performance, and preparing compliant presentations are available upon request. SGA’s earnings growth forecast data is based upon portfolio companies’ Non-GAAP operating earnings.