Sustainable Growth Advisers (SGA), an investment management company, released its fourth-quarter investor letter for its “Emerging Markets Growth Strategy.” A copy of the letter can be downloaded here. The fourth quarter of 2025 marked strong divergence from the market. Market leadership by AI beneficiaries and revival of cyclical sectors dominated the market, while quality growth strategies faced challenges. In Q4 2025, the portfolio returned 0.8% (Gross) and 0.6% (Net) compared to the MSCI EM Net TR Index return of 4.7% and the MSCI EM Growth Net TR Index return of 3.3%. In 2025, the portfolio delivered strong returns of 23.8% (Gross) and 22.8% (Net) but lagged the 33.6% and 34.3% returns for the indexes, respectively. The portfolio projects 13% revenue growth and 16% earnings growth annually for the next three years. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, SGA Emerging Markets Growth Strategy highlighted stocks like Yum China Holdings, Inc. (NYSE:YUMC). Headquartered in Shanghai, the People’s Republic of China, Yum China Holdings, Inc. (NYSE:YUMC) is a fast-food restaurant operator. On February 13, 2026, Yum China Holdings, Inc. (NYSE:YUMC) stock closed at $55.42 per share. One-month return of Yum China Holdings, Inc. (NYSE:YUMC) was 16.55%, and its shares are up 12.73% over the past twelve months. Yum China Holdings, Inc. (NYSE:YUMC)has a market capitalization of $19.578 billion.
SGA Emerging Markets Growth Strategy stated the following regarding Yum China Holdings, Inc. (NYSE:YUMC) in its fourth quarter 2025 investor letter:
“Yum China Holdings, Inc. (NYSE:YUMC): In November we met with Yum’s ESG team, the company’s Chief Sustainability Officer, and members of the legal department.
