- SGA’s International Growth portfolio returned -11.7% (gross) and -12.0% (net) in Q4 compared to -11.5% for its primary benchmark the MSCI All Country World ex-USA Index, and -12.2% for the ACWI ex-USA Growth Index
- Trade tensions between the U.S. and China overshadowed the signing of the new NAFTA agreement, and led to a marked increase in market volatility; emerging markets held up relatively well despite significant weakness in Chinese stocks
- Global markets took on a decidedly defensive tone with stocks deemed to be more sensitive to slowing global economic growth most negatively impacted
- Larger-cap companies performed best; the reward to business quality was mixed with value, high ROE, companies with earnings, and lower betas outperforming
- Utilities, Telecommunications and Consumer Staples performed best while more economically sensitive sectors such as Energy and Technology performed worst
- New positions in Linde and Wirecard were initiated and positions in Schlumberger and Air Liquide were liquidated; other positions were adjusted as we took advantage of the increase in market volatility
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.