- SGA’s International Growth portfolio returned 0.7% (gross) and 0.4% (net) in Q1 2018 compared to -1.2% for its primary benchmark the MSCI ACWI ex-USA Index, and -0.9% for the MSCI ACWI ex-USA Growth Index
- Emerging markets continued to outperform developed markets; Latin America was the strongest performing region, while developed markets in Europe lagged
- Information Technology and Health Care sectors performed best while the Telecommunications, Materials and Consumer Staples sectors were weakest
- Portfolio performance benefited from strong stock selection particularly in Consumer Staples, while selection in Information Technology and Materials detracted most from returns
- Turnover was average for the quarter with new positions established in Asian Paints and L’Oréal; the portfolio’s position in Universal Robina was liquidated
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.
SGA earnings growth forecasts are based upon portfolio companies’ non-GAAP operating earnings. 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, 1.0%, employing the International 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. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. Upon request, free of charge, SGA can provide a list of all portfolio holdings held in SGA’s International portfolio for the past twelve months. Past performance is not indicative of future results.