- Portfolio trailed the MSCI ACWI ex USA Index and performed in line with the MSCI ACWI ex USA Growth Index in Q3
- Initial optimism for a turnaround in China faded as economic data remained weak and stimulus measures underwhelmed; China and markets leveraged to the Chinese economy weighed on the index, while strength in India contributed positively to market performance
- Short-term disappointments and uncertainty weighed on positions in Adyen, Shandong Weigao, and AIA Group which detracted most from performance. Positions in Atlassian, Universal Music Group, and Novo Nordisk contributed most positively to performance due to better-than-expected earnings results
- No new positions were initiated in the portfolio and no positions were sold during the quarter. We added to Universal Music Group, while trimming positions in Sartorius, ICON, and Infosys
- Portfolio remains well-positioned to deliver attractive, above-average growth in earnings and cash flows over the next three years with greater predictability
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.