Sustainable Growth Advisers (SGA), an investment management company, released its second-quarter 2026 investor letter for its "Global Growth Strategy." The letter can be downloaded here. The SGA Global Growth Portfolio returned 7.4% gross and 7.2% net, compared with 14.9% for the MSCI ACWI and 19.8% for the MSCI ACWI Growth Index. Momentum leadership and enthusiasm around AI infrastructure drove markets, with semiconductor, memory, and hardware stocks accounting for much of the gain. Although the portfolio owned AI beneficiaries, broader holdings lagged despite fundamentals, as median revenue and EPS growth reached 12% and 14% and more than 60% of the holdings beat expectations. SGA believes valuation compression reflects sentiment rather than weaker business quality, leaving the portfolio near its widest discount to the market since inception. The firm continues to favor durable compounders and expects 16% revenue growth and 20% earnings growth over three years. Also, please check the Fund's top five holdings to see its best picks for 2026.
In its second-quarter 2026 investor letter, SGA Global Growth Strategy highlighted Yum! Brands, Inc. (NYSE:YUM). Yum! Brands, Inc. (NYSE:YUM) develops, operates, and franchises traditional and non-traditional quick service restaurants in the United States and internationally. On August 24, 2026, Yum! Brands, Inc. (NYSE:YUM) closed at $157.35 per share. The one-month return of Yum! Brands, Inc. (NYSE:YUM) was 4.4%, and its shares gained 6.7% over the past 52 weeks. Yum! Brands, Inc. (NYSE:YUM) has a market capitalization of $42.84 billion.
SGA Global Growth Strategy stated the following regarding Yum! Brands, Inc. (NYSE:YUM) in its Q2 2026 investor letter:
"We met with Jon Hixon, Yum! Brands, Inc.'s (NYSE:YUM) Chief Sustainability Officer, as well as members of legal and human resources teams to discuss several topics relevant to our investment thesis, including human capital management, geopolitical and reputational risks, corporate governance, and sustainability reporting. During the discussion, we were pleased to hear that Yum's next sustainability report would include, for the first time, disclosures aligned with the Taskforce on Nature-related Financial Disclosures (TNFD) framework, alongside its existing climate-related reporting. The addition of TNFD reporting reflects the company's ongoing efforts to ******* s and disclose nature-related dependencies, impacts, risks, and opportunities across its agricultural supply chain. A key focus of the engagement was Pizza Hut's ongoing strategic review and the ******* ociated human capital implications. Management outlined several retention initiatives designed to support workforce stability during the review process, including broad-based retention bonuses for employees and targeted retention awards for critical leadership and operational roles. While the company had experienced a modest increase in employee turnover, management indicated that attrition remai
In its second-quarter 2026 investor letter, SGA Global Growth Strategy highlighted Yum! Brands, Inc. (NYSE:YUM). Yum! Brands, Inc. (NYSE:YUM) develops, operates, and franchises traditional and non-traditional quick service restaurants in the United States and internationally. On August 24, 2026, Yum! Brands, Inc. (NYSE:YUM) closed at $157.35 per share. The one-month return of Yum! Brands, Inc. (NYSE:YUM) was 4.4%, and its shares gained 6.7% over the past 52 weeks. Yum! Brands, Inc. (NYSE:YUM) has a market capitalization of $42.84 billion.
SGA Global Growth Strategy stated the following regarding Yum! Brands, Inc. (NYSE:YUM) in its Q2 2026 investor letter:
"We met with Jon Hixon, Yum! Brands, Inc.'s (NYSE:YUM) Chief Sustainability Officer, as well as members of legal and human resources teams to discuss several topics relevant to our investment thesis, including human capital management, geopolitical and reputational risks, corporate governance, and sustainability reporting. During the discussion, we were pleased to hear that Yum's next sustainability report would include, for the first time, disclosures aligned with the Taskforce on Nature-related Financial Disclosures (TNFD) framework, alongside its existing climate-related reporting. The addition of TNFD reporting reflects the company's ongoing efforts to ******* s and disclose nature-related dependencies, impacts, risks, and opportunities across its agricultural supply chain. A key focus of the engagement was Pizza Hut's ongoing strategic review and the ******* ociated human capital implications. Management outlined several retention initiatives designed to support workforce stability during the review process, including broad-based retention bonuses for employees and targeted retention awards for critical leadership and operational roles. While the company had experienced a modest increase in employee turnover, management indicated that attrition remai
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