Highlights:
- SGA’s Global Mid Cap portfolio returned 6.6% (gross) and 6.3% (net) versus 11.7% for the ACWI Mid Cap and 10.5% for the ACWI Mid Cap Growth Index in Q4 2022; underperformance was mostly due to stock selection
- For the year 2022, the portfolio trailed the ACWI Mid Cap and ACWI Mid Cap Growth Indices as valuations for long duration growth stocks were negatively impacted by sharply rising interest rates
- Selection in U.S. and Non-U.S. Developed regions detracted most from relative performance while an underweight exposure to Non-U.S. Devleoped also detracted
- No new positions were intitiated or full positions liquidated during the quarter
- We are pleased to announce that Kishore Rao will replace Gordon Marchand on SGA’s Executive Committee (the group charged with running SGA’s business) effective July 1st, as Gordon retires from SGA
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, 0.85%, employing the Global Mid Cap 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 Mid Cap 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.