- The portfolio generated attractive absolute and relative returns in the Q2 as volatility in the markets increased
- Stock selection was the key driver of excess returns and was additive across most sectors; sector allocations also contributed positively
- Selection in the Information Technology and Consumer Staples sectors was strongest while selection in the Consumer Discretionary sector detracted most
- New positions in adidas and Alcon were initiated while the portfolio’s positions in Ambev, Sinopharm and Wirecard were liquidated
- Positions in Alibaba, Asian Paints, Heineken and Tencent among others were added to on weakness, while positions in MercadoLibre and HDFC Bank were trimmed on strength
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.