Summary

• Across the portfolios, between two-thirds and three-quarters of holdings have met or exceeded both Sustainable Growth Advisers' internal expectations and consensus forecasts for earnings and revenue growth.
• The average holding in the portfolios has experienced approximately 10% contraction in its price-to-earnings multiple this year, driven largely by sentiment and style rotation rather than deteriorating business quality.
• Sustainable Growth Advisers initiated a new position in Mastercard, viewing a share price dislocation caused by proposed interest rate caps as an attractive entry point into a high-quality earnings compounder.
• The team exited its position in Gartner after the company's earnings guidance reinforced reinvestment in pursuit of unrealistic growth targets rather than balanced growth and profitability.
• Sustainable Growth Advisers decided to exit the UnitedHealth position as disappointing preliminary 2027 CMS rates and membership losses indicated a more mature Medicare Advantage market and increased competition.

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