- The portfolio generated strong absolute returns and outperformed the MSCI All Country World ex-USA Index (ACWI ex-USA) as world markets continued their rebound led by e-commerce, technology and more economically sensitive companies
- Relative portfolio performance in Q3 was positively impacted by stock selection and residual sector allocations
- Stock selection in the Financials, Consumer Discretionary and Health Care sectors was strongest; selection in the Consumer Staples and Industrials sectors detracted
- MercadoLibre was sold due to valuation and the portfolio’s position in Sanlam was liquidated to fund other higher confidence growth opportunities
- The portfolio is expected to generate revenue and earnings growth higher than ACWI ex-USA Index over the coming three years with greater predictability and sustainability
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.