- Portfolio trailed its MSCI ACWI ex USA benchmark in Q1 as value-oriented stocks outperformed; a lack of exposure to Energy had a significant impact; portfolio outperformed the MSCI ACWI ex USA Growth Index
- Aon, Wal-Mart de Mexico, and CP All were the largest positive contributors to performance; Sysmex, Temenos, and Recruit detracted most
- Turnover was average in Q1 with no new positions initiated and positions in Asian Paints and PayTM liquidated; several positions were added to on weakness and trimmed on strength
- Portfolio forecast to grow earnings 18% per year over the next three years, higher than the MSCI ACWI ex USA Index with higher quality characteristics, greater predictability, and an attractive cash flow-based valuation
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 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 investments, calculating performance, and preparing GIPS Reports 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. SGA’s earnings growth forecast data is based upon portfolio companies’ Non-GAAP operating earnings.