We are pleased to provide you with a summary report on the performance of the WCM Quality Global Growth Equity Strategy (the Strategy) for January 2026.
The Strategy1 delivered a return of -2.24% during the month, compared with the benchmark MSCI All Country World Index (the Benchmark) return of -1.97%. The Strategy has delivered returns in excess of the Benchmark over three and 10 years and since inception.
Strategy Update
Global equities made a positive start to the year with the MSCI All Country World Index returning over 2% in local currency terms. Geopolitics dominated the news again in January with flashpoints in Greenland, Venezuela and Iran. On the economic front, the major data releases during the month were positive in general for markets.
The closely watched US labour market showed encouraging signs with the unemployment rate declining while industrial production in both the US and Germany exceeded consensus forecasts. Relatively benign inflation reports in Europe and the US provided additional support to equity markets. The trend of underperformance of US versus non-US equities continued in January with emerging markets in particular performing strongly. In terms of sectors, Energy and Materials led the way while Technology and Financials lagged. At a factor level, small market capitalisation stocks beat large stocks, while value outperformed growth in the US but underperformed in Europe.
Attribution analysis for the month showed that the overweight positioning in Industrials and Materials and underweight exposure to Consumer Discretionary contributed positively to relative performance in January. This positive sector effect was partially offset by negative contributions from Energy and Consumer Staples where the portfolio has no exposure and above Benchmark weighting in Health Care. In terms of stock selection, Industrials was the best performing sector relative to the Benchmark, followed by Health Care. Conversely stock selection in the Information Technology, Communication Services and Financials were the largest detractors.
One of the most pressing questions for 2026 is whether we are amid an Artificial Intelligence (AI) bubble. The team at WCM Investment Management (WCM) view AI as a transformative, long-term productivity driver while being mindful that speculative excesses can emerge. The Strategy portfolio isn’t a single theme AI bet. It has exposure to direct beneficiaries in computing and capacity (e.g. GoDaddy Inc.), cash generative platforms (e.g. Microsoft Corporation) and power infrastructure (e.g. Siemens Energy). GoDaddy provides cloud-based services to over 21 million online presence-seeking entrepreneurs. The company is transitioning from a pure domains business into a multi-product platform, cross selling multiple website-building products into its small and medium sized business customer base. Importantly, these new products have higher margins than the core business, meaning a positive mix shift and expanding economic moat.
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.
