- The portfolio generated strong absolute returns while trailing the MSCI All Country World ex-USA Index (ACWI ex-USA) as markets continued to rebound led by lesser quality and more economically sensitive companies
- Stock selection and residual sector allocations detracted from performance for the quarter, but contributed positively for the year
- For Q4, stock selection in the Information Technology and Consumer Discretionary sectors detracted most, while selection in Consumer Staples was strong; overweights in the more defensive Consumer Staples, and Health Care sectors detracted from results
- New positions CP All, Sartorius and Medtronic were initiated while no positions were fully liquidated, but several were trimmed due to valuation
- The portfolio is well positioned to generate revenue and earnings growth meaningfully higher than that of the ACWI benchmark 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.