- The portfolio outperformed amid trade and macro- economic driven market weakness in August, but trailed the MSCI ACWI index in July and particularly in September as cyclicals rebounded sharply on hopes for a trade war truce and new global monetary accommodation
- Stock selection was the primary detractor from relative performance, with selection in the Financials, Information Technology and Consumer Staples sectors being weakest due primarily to positions in SAP, AIA Group and Shoprite
- Stock selection in the Consumer Discretionary and Real Estate sectors contributed the most positively to relative returns due to New Oriental Education and Equinix
- New positions in Heineken and Illumina were initiated while positions in Ctrip, FEMSA and Shoprite were sold
- Positions in Equinix, MercadoLibre, and New Oriental Education were trimmed on strength while positions in Amazon, Salesforce.com, and Tencent were added to on weakness
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.