We are pleased to provide you with a summary report on the performance of the WCM Quality Global Growth Strategy (the Strategy) for February 2026.
The Strategy1 delivered a return of -0.39% during the month, outperforming the benchmark MSCI All Country World Index (the Benchmark) return of -0.41%. The Strategy has delivered returns in excess of the Benchmark over one, three and 10 years and since inception.
Strategy Update
Global equities delivered modest gains in February, however these were more than offset for unhedged portfolios by the stronger Australian dollar. The major market impacting event during the month was the US Supreme Court’s ruling against the Trump administration’s use of the International Emergency Economic Powers Act to impose broad based tariffs. In terms of economic news, the reported data was generally positive for equity markets. Equity markets outside the US delivered relative outperformance, as US stocks faced headwinds from rotation out of the Technology sector, particularly software. Emerging markets and Japan performed strongly. The performance of Japanese equities followed a snap election in which Prime Minister Takaichi gained a super majority, enabling her to implement pro-growth stimulatory fiscal policies. Performance at a style and sector level also diverged significantly over the course of the month. Value outperformed growth and small capitalisation stocks beat large. The market leaders by sector included Energy, Utilities and Materials and the laggards were Technology and Financials.
The Strategy marginally outperformed its Benchmark in February. Positive contributions from sector allocation came from overweight Industrials and Materials and an underweight in Consumer Discretionary. Stock selection within the Financials, Materials and Communication Services sectors weighed on relative portfolio performance. This was partially offset by the portfolio’s Information Technology, Health Care and Real Estate holdings. By contrast, not holding any Energy, Utilities or Consumer Staples stocks detracted from performance relative to the market.
Portfolio holding 3i Group is a UK-based private equity firm which owns most of Action, a thriving European discount retailer. Action, which started in the Netherlands, offers 6,000 products across 14 categories, with 20% being branded items. The store’s allure is its everyday low pricing and the thrill of a treasure hunt experience. Its retail model is based on simplicity, standardisation, scale and a frugal culture, which has helped it achieve an enviable growth rate over the past decade. A proven business model, attractive unit economics and a long runway for store count expansion (which in turn drive even greater scale advantages) all point to a growing moat.
The portfolio’s ability to keep pace with and better the market in recent years is particularly pleasing given what has been a persistently narrow backdrop for active, quality growth strategies. This underscores the ever-present inefficiencies the investment team at WCM aims to exploit, namely, companies with growing competitive advantages and an aligned, adaptable corporate culture. These attributes remain an underappreciated source of compelling long-term investment returns, regardless of prevailing style factors.
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.
