Sustainable Growth Advisers (SGA), an investment management company, launched 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% internet, in contrast with 14.9% for the MSCI ACWI and 19.8% for the MSCI ACWI Growth Index. Momentum management and enthusiasm around AI infrastructure drove markets, with semiconductor, reminiscence, and {hardware} shares accounting for much of the gain. Although the portfolio owned AI beneficiaries, broader holdings lagged despite fundamentals, as median income and EPS growth reached 12% and 14% and more than 60% of the holdings beat expectations. SGA believes valuation compression displays sentiment rather than weaker business high quality, leaving the portfolio close to its widest low cost to the market since inception. The firm continues to favor sturdy compounders and expects 16% income growth and 20% earnings growth over three years. Also, please examine the Fund’s prime 5 holdings to see its best picks for 2026.
In its second-quarter 2026 investor letter, SGA Global Growth Strategy highlighted Canadian Pacific Kansas City Limited (NYSE:CP). Canadian Pacific Kansas City Limited (NYSE:CP) owns and operates a transcontinental freight railway in Canada and internationally. On August 24, 2026, Canadian Pacific Kansas City Limited (NYSE:CP) closed at $94.68 per share. The one-month return of Canadian Pacific Kansas City Limited (NYSE:CP) was 3.25%, and its shares gained 24.17% over the previous 52 weeks. Canadian Pacific Kansas City Limited (NYSE:CP) has a market capitalization of $83.25 billion.
SGA Global Growth Strategy acknowledged the following regarding Canadian Pacific Kansas City Limited (NYSE:CP) in its Q2 2026 investor letter:
“We engaged with management of Canadian Pacific Kansas City Limited (NYSE:CP) in advance of the company’s annual meeting to discuss its climate strategy and a proposal on climate-related disclosures. A key topic of discussion was the company’s decision to defer establishing a Science Based Targets initiative (SBTi)-validated 1.5°C-aligned emissions reduction target. While the ISS Sustainability policy recommended voting against the climate proposal due to the absence of intermediate and long-term emissions targets, management explained that the delay stemmed from the lack of a finalized intensity-based methodology from SBTi appropriate for the freight rail industry, emphasizing that CPKC remains committed to its existing goal of reducing locomotive well-to-wheel emissions intensity by 36.9% by 2030 and continues to work with SBTi as industryspecific frameworks evolve. Management highlighted continued spending on locomotive fleet modernization, including investment in new Tier 4 locomotives, expansion of its hydrogen locomotive program, and trials of renewable fuels. After reviewing the company’s disclosures, proxy materials, and feedback from management, we concluded that the company is making good-faith progress toward its stated climate objectives. Although we would prefer greater clarity regarding longterm emissions ambitions and future target setting, we found management’s explanation for the delay credible and were encouraged by the company’s continued investment in emissions-reduction initiatives. Consistent with our prior voting approach, we elected to support management’s climate proposal. We will continue to monitor the company’s progress toward its emissions reduction targets and the evolution of its long-term climate commitments.”