- SGA’s International Growth portfolio returned 9.6% (gross) and 9.3% (net) in Q2 2017 compared to 5.8% for its primary benchmark the MSCI ACWI ex-USA Index, and 7.6% for the MSCI ACWI ex-USA Growth Index
- Emerging markets continued to outperform developed markets; European and Asian markets performed best, while Q1’s top performer Latin America lagged
- Improving economic data in Europe and better than expected growth in China led to higher earnings estimates in those regions, while growth expectations continued to moderate in the U.S.
- Technology, Industrials and Health Care sectors performed best while Energy was weakest
- Portfolio performance benefited from strong stock selection; selection in Financials and Consumer Discretionary contributed most while selection in Energy and Industrials detracted
- Selectivity to remain critical as headwinds to any significant improvements in global economic growth persist
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.