- Portfolio lagged its benchmarks in Q4’s strong market rebound. For the year, the portfolio trailed the MSCI ACWI ex USA Index but outpaced the MSCI ACWI ex USA Growth Index
- Companies with higher growth prospects continued to underperform; a cyclical rally in Q4 posed a headwind for the portfolio’s relative returns
- New positions were initiated in Canadian Pacific and Atlassian; no positions were liquidated. Several positions were trimmed on strength, including AIA Group, FEMSA, Shandong Weigao, Yum China, Novo Nordisk, and Linde, while positions in Heineken, Adyen, XP, and Sartorius were added to on weakness
- Portfolio remains well-positioned to deliver attractive, above-average growth in earnings and cash flows over the next three years with greater predictability
- We are pleased to announce that Kishore Rao will replace Gordon Marchand on SGA’s Executive Committee (the group charged with running SGA’s business) effective July 1st, as Gordon retires from SGA
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.