We are pleased to provide you with a summary report on the performance of the WCM Quality Global Growth Equity Strategy (the Strategy) in October 2025.
The Strategy1 delivered a return of 0.50% during the month, compared with the benchmark MSCI All Country World Index (the Benchmark) return of 3.52%. The Strategy has delivered returns in excess of the Benchmark over one, three and 10 years, and since inception.
Strategy Update
Global equity markets posted another positive month in October 2025. Support for markets came from an ease in tensions between the US and China, following their trade negotiations, paired with strong quarterly corporate earnings in the US. Key data released during the month was lower than expected US consumer price inflation (CPI). This provided validation for the widely-expected 0.25% reduction in interest rates by the Federal Reserve. Less expected by the market, however, was the subsequent statement from Federal Reserve chair Jerome Powell, who flagged that a further reduction in rates in December shouldn’t be taken as a given. Within developed equity markets, Japan was a standout performer following the election of a new ‘market-friendly’ prime minister. Elsewhere, the UK was also an outperformer, whilst neighbouring European markets lagged. Technology led the way at the sector level and was the major contributor to outperformance of growth relative to value over the course of the month.
The underperformance of the Strategy in October was primarily due to stock selection. While stocks held with in the Health Care, Financials and Consumer Discretionary sectors contributed positively to relative performance, this was more than offset by the portfolio’s positions in Technology, Industrials and Communication Services. In terms of sector allocation, the Strategy benefited from having zero exposure to Energy, Real Estate and Consumer Staples. The underweight relative to benchmark position in Technology and overweight to Materials and Industrials detracted from performance.
Boston-based Vertex Pharmaceuticals (Vertex) is one of six Health Care holdings in the portfolio. Vertex is a large scale, global biotech company best known for its cystic fibrosis (CF) franchise which is the standard of care and has market share north of 90%. Its dominance in the CF business creates a formidable moat which is improving over time as it leverages its innovative culture to expand into additional large market opportunities, pain management being chief among them.
The ongoing advancement of global equity markets in 2025 reflects investors’ willingness to look past short-term risks and focus on the longer arc of technological progress driving productivity and earnings growth. However, the velocity of change related to advancements in artificial intelligence (AI), evolving supply chains and persistent geopolitical tension has kept volatility in play. The resulting environment is one of tempered optimism: forward-looking while conscious that the conditions sustaining the market momentum require careful navigation. Over the past two decades WCM Investment Management’s (WCM) investment process has been shaped by a forward-looking focus. Identifying companies poised to grow their competitive advantages, benefiting from secular tailwinds and themes with strong aligned cultures are the core foundations of WCM’s investment philosophy. These foundations are as important today as at any point in WCM’s 20-plus years of global equity investing, as accurately evaluating business trajectories amidst the current myriad of crosscurrents will have an outsized influence on long-term investment success.
Notes: 1. WQG, WCMQ and WCM Quality Global Growth Fund (Managed Fund) have the same Portfolio Managers and investment team, the same investment principles, philosophy, strategy and execution of approach as those used for the WCM Quality Global Growth Strategy however, it should be noted that due to certain factors including, but not limited to, differences in cash flows, management and performance fees, expenses, performance calculation methods, and portfolio sizes and composition, there may be variances between the investment returns demonstrated by each of these portfolios and the WCM Quality Global Growth Strategy Composite (the Composite) in the future. As WQG, WCMQ and WCM Quality Global Growth Fund (Managed Fund) have only been in operation for a relatively short period of time, this table makes reference to the Composite to provide a better understanding of how the team has managed this strategy over a longer period. Performance is net of fees and includes the reinvestment of dividends and income. 2. Composite inception date is 31 March 2008. 3. Benchmark refers to the MSCI All Country World Index (with gross dividends reinvested reported in Australian Dollars and unhedged). 4. Value Added equals Composite Performance minus Benchmark performance. 5. Annualised.
DISCLAIMER: AGP Investment Management Limited (AGP IM) (ABN 26 123 611 978, AFSL 312247) is a wholly owned subsidiary of Associate Global Partners Limited (AGP) (ABN 56 080 277 998), a financial institution listed on the ASX (APL). AGP IM has prepared this material for general information purposes only for WCM Global Growth Limited, a listed investment company (ASX: WQG).
AGP IM is the responsible entity for WCM Quality Global Growth Fund - Active ETF (ARSN 625 955 240) (ASX: WCMQ) and WCM Quality Global Growth Fund (Managed Fund) (ARSN 630 062 047).
AGP International Management Pty Ltd (AIML) (ABN 33 617 319 123) is the investment manager for WQG and is an authorised representative of AGP IM. WCM Investment Management, LLC (WCM) is the underlying manager and applies its WCM Quality Global Growth Equity Strategy (the Strategy), excluding Australia, in managing each of WQG, WCMQ and WCM Quality Global Growth Fund (Managed Fund)(the Funds). WCM Investment Management, LLC is exempt from the requirement to hold an Australian Financial Services License under ASIC Corporations (Repeal and Transitional) Instrument 2016/396 and is regulated by the U.S. Securities and Exchange Commission under U.S. law, which differs from Australian law. WQG and AIML are part of the AGP Group.
Any references to ‘We’, ‘Our’, ‘Us’, or the ‘Team’ used in the context of the portfolio commentary, is in reference to WCM Investment Management, as investment manager for the Strategy or AIML as investment manager for WQG.
Even though the Strategy, excluding Australia, is applied to each of WQG, WCMQ and WCM Quality Global Growth Fund (Managed Fund) certain factors including, but not limited to, differences in cash flows, fees, expenses, performance calculation methods, portfolio sizes and composition may result in variances between the investment returns for each portfolio. The performance of the Strategy is not the performance of the portfolios and is not an indication of how WQG, WCMQ and WCM Quality Global Growth Fund (Managed Fund) would have performed in the past or will perform in the future.
The material should not be viewed as a solicitation or offer of advice or services by WCM, AGP or AGP IM. It does not contain investment recommendations nor provide investment advice. It does not take into account the objectives, financial situation or needs of any particular individual. Investors should, before acting on this material, consider the appropriateness of the material.
Neither AGP IM, AGP, their related bodies corporate, entities, directors or officers guarantees the performance of, or the timing or amount of repayment of capital or income invested in the Funds or that the Funds will achieve its investment objectives. Past performance is not indicative of future performance.
Any economic or market forecasts are not guaranteed. Any references to particular securities or sectors are for illustrative purposes only and are as at the date of publication of this material. This is not a recommendation in relation to any named securities or sectors and no warranty or guarantee is provided that the positions will remain within the portfolio of the funds. Any securities identified and described are for illustrative purposes only and do not represent all of the securities purchased, sold or recommended for client accounts. The reader should not assume that an investment in the securities identified was or will be profitable.
Investors should seek professional investment, financial or other advice to assist the investor determine the individual tolerance to risk and needs to attain a particular return on investment. In no way should the investor rely on information contained in this material.
Investors should read the Product Disclosure Statements (PDS) of the Funds or any relevant offer document in full before making a decision to invest in these products.
