- SGA’s International Growth portfolio returned 0.9% (gross) and 0.6% (net) in Q3 2018 compared to 0.7% for its primary benchmark the MSCI ACWI ex-USA Index, and -0.3% for the ACWI ex-USA Growth Index
- Developed Markets outperformed Emerging Markets by a wide margin as investors steered clear of emerging markets over concerns tied to rising interest rates, reduced liquidity, currency issues, rising oil prices and trade tariffs
- Larger-cap companies performed best; the return to business quality was mixed
- Energy and Health Care, sectors performed best, while the Utilities, Consumer Discretionary and Technology sectors performed the worst
- Oil prices rose on supply concerns related to Iran and Libya while demand remained strong despite some slowing in global economic growth
- Positions in Nestle and Shandong Weigao were initiated and the portfolio’s positions in Shoprite and Amorepacific were sold; several other positions were trimmed or added to during the course of the quarter
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.