Highlights:
- Portfolio outperformed the MSCI ACWI ex USA and MSCI ACWI ex USA Growth Indices in Q4 and for the year.
- Markets rose on increasing optimism around the global economic backdrop and rising hopes for a broad central bank pivot in 2024 given moderating inflationary pressures. Chinese stocks remained weak given continuing concerns around its property market, economic recovery, and relations with the West.
- Positions in Adyen, FEMSA, and Temenos contributed most positively to performance, driven by better-than-expected quarterly results. Positions in Yum China, Aon, and CP All detracted most due to near-term disappointments.
- No new positions were initiated or sold during the quarter. Positions in Dassault Systemes, FEMSA, and Linde were reduced, while positions in Nestle, Steris, and Universal Music Group were raised, among others.
- 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.