- Portfolio outperformed the MSCI All Country World Index (ACWI) in Q3 primarily due to stock selection in the Information Technology sector.
- Pressure on stocks with higher levels of sales stability created a headwind.
- The largest contributors to performance were Atlassian, Novo Nordisk and Intuit; the largest detractors were HDFC Bank, AIA Group, and Microsoft.
- We liquidated positions in Adobe and Intuitive due to valuation and reinvested the capital in Universal Music Group.
- We added to positions in Mengniu Dairy, Amazon and NVIDIA on weakness and continued building our position in UnitedHealth; trimmed positions in Alphabet and FleetCor on strength.
- Portfolio revenues and earnings are expected to grow by 11% and 16% respectively over the next three years versus 5% and 10% for the ACWI as we continue to expect gradual slowing in global macroeconomic and profit growth.
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.