- The portfolio generated strong absolute returns and outperformed the MSCI All Country World Index (ACWI) as markets continued their rebound led by e-commerce, technology and more economically sensitive companies
- Relative portfolio performance in Q3 was negatively impacted by stock selection, but positively impacted by residual sector allocations; an overweight in the Consumer Discretionary sector contributed most
- Stock selection in the more defensive Consumer Staples sector detracted most from performance; selection across most other sectors contributed positively
- A new position in Alcon was initiated while the portfolio’s position in MercadoLibre was sold due to valuation
- The portfolio is expected to generate revenue and earnings growth much higher than the MSCI All Country World 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.
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.