Clear and timely communications are crucial in the fast-paced investment world. SGA is pleased to share the latest portfolio commentaries, important news, and updates about our portfolios, our firm, and the markets.
News
We are pleased to announce that Nick Avaliani, Danielle Losquadro, and Matthew Maloney have joined SGA.
We are pleased to announce that we have undergone a Statement of Standards for Attestation (SSAE) No. 18 Organization Controls (“SOC”) 1SM exam and received a clear opinion resulting in a report stating that SGA maintained effective controls over all aspects of its investment systems.
We are pleased to announce that Jonathan Shaham and Courtney Owens have joined SGA.
We are pleased to announce that Connor Shalleck has joined SGA as an Associate Portfolio Analyst.
We are pleased to announce that Anne LeMaster-Merrick and Anna Brown have joined SGA.
We are pleased to announce that Joshua Slutsky has joined SGA as an Associate Portfolio Analyst.
We hired MSCI and ISS to assist in our efforts to conduct objective and effective research relative to ESG and our proxy voting decisions.
Portfolio Commentaries
The U.S. Large Cap Growth portfolio returned 8.2% (Gross) and 8.0% (Net) in Q2 versus 12.8% for the Russell 1000 Growth Index and 8.7% for the S&P 500 Index.
U.S. Large Cap Growth annualized returns: 1 Year 19.7% (Gross), 18.8% (Net); 5 Year 12.7% (Gross), 11.9% (Net); 10 Year 13.6% (Gross), 12.8% (Net); Since Inception: 10.4% (Gross), 9.6% (Net).
Russell 1000 Growth annualized returns: 1 Year 27.1%; 5 Year 15.1%; 10 Year 15.7%; Since Inception: 11.5%.
The U.S. Focused portfolio returned 8.2% (Gross) and 8.0% (Net) in Q2 versus 12.8% for the Russell 1000 Growth Index.
U.S. Focused Growth annualized returns: 1 Year 18.1% (Gross), 17.1% (Net); 5 Year 11.4% (Gross), 10.5% (Net); 10 Year 14.6% (Gross), 13.7% (Net), Since Inception: 11.6% (Gross), 10.7% (Net).
Russell 1000 Growth annualized returns: 1 Year 27.1%; 5 Year 15.1%; 10 Year 15.7%; Since Inception: 11.7%.
The Global Growth portfolio returned 7.3% (Gross) and 7.1% (Net) in Q2 versus 6.2% for the MSCI ACWI and 9.2% for the MSCI ACWI Growth Index.
Global Growth annualized returns: 1 Year 19.6% (Gross), 18.6% (Net); 5 Year 9.5% (Gross), 8.6% (Net); 10 Year 11.7% (Gross), 10.8% (Net); Since Inception: 11.8% (Gross), 10.8% (Net).
MSCI ACWI (Net TR) annualized returns: 1 Year 16.5%; 5 Year 8.1%; 10 Year 8.8%; Since Inception: 8.0%.
SGA’s Emerging Markets Growth portfolio returned 2.3% (Gross) and 2.1% (Net) in Q2, compared to 0.9% and -0.7% for the MSCI EM and EM Growth Indices, respectively.
Emerging Markets Growth annualized returns: 1 Year 12.4% (Gross), 11.4% (Net); 5 Year 4.2% (Gross), 3.3% (Net); Since Inception: 5.7% (Gross), 4.8% (Net).
MSCI EM (Net TR) annualized returns: 1 Year 1.7%; 5 Year 0.9%; Since Inception: 1.6%.
SGA’s International Growth portfolio returned 5.6% (Gross) and 5.3% (Net) in Q2 versus 2.4% for the MSCI ACWI ex USA Index and 1.9% for the MSCI ACWI ex USA Growth Index.
International Growth annualized returns: 1 Year 20.0% (Gross), 19.0% (Net); 5 Year 8.5% (Gross), 7.6% (Net); Since Inception: 8.4% (Gross), 7.5% (Net).
MSCI ACWI ex USA (Net TR) annualized returns: 1 Year 12.7%; 5 Year 3.5%; Since Inception: 3.8%.
SGA Insights
As index concentration levels have soared over the last decade, reaching unprecedented levels in the U.S., it raises several questions about investor suitability, risk, and return potential moving forward.
Over the course of our careers, we have seen that significant long-term change is often obscured and even accelerated by short-term disruptions.
We believe Environmental, Social and Governance (ESG) factors have a meaningful impact on a company’s ability to generate long-term sustainable growth.
SGA was formed in 2003 by three portfolio managers from vastly different backgrounds who shared a common vision for the investment firm they wanted to build and the legacy they wanted to create for generations of employees and clients to come.
We are now entering a new investment era, a post-quantitative easing (“QE”) period of subdued nominal growth and returns. The forces defining this period have come into focus now that the dust of the financial crisis has settled and the dramatic policy responses, most notably QE, have run their course.