We are pleased to provide you with a summary report on the performance of the WCM Quality Global Growth Strategy (the Strategy) for March 2026.
The Strategy1 delivered a return of -5.61% during the month, compared with the benchmark MSCI All Country World Index (the Benchmark) return of -3.37%. The Strategy has delivered returns in excess of the Benchmark over one, three and 10 years and since inception.
Strategy Update
Following a significant escalation of the conflict in the Middle East, global equity markets recorded their steepest monthly decline since 2022. The most immediate impact of the conflict was seen in energy markets, with the price of Brent Crude oil rising from US$73 to close to US$110 per barrel. This in turn led to increased inflation concerns, higher bond yields and pressure on equity market valuations. The transition from expectations of monetary policy easing to a higher rate environment, together with deteriorating growth expectations, prompted markets to reassess the risk of stagflation like that experienced in the 1970s and early 1980s. The most impacted markets regionally following the surge in oil prices have been Japan and South Korea, largely due to their dependence on energy imports. At a sectoral level, the sell off was broad-based with Energy the only sector recording a positive return for the month.
The underperformance of the Strategy in March was primarily due to stock selection. While the Strategy’s holdings in the Materials sector contributed positively, this was more than offset by positions held in the Industrials, Financials and Information Technology sectors. In terms of the sector allocation effect, the portfolio’s zero exposure to the Energy sector was the biggest drag on relative performance. Sector allocations contributing positively to the portfolio’s returns versus the market included below benchmark exposures to Consumer Staples, Consumer Discretionary and Communication Services.
Market volatility, such as we are currently experiencing, provides both risk and opportunity. The challenge for fund managers is determining whether volatility is symptomatic of the beginning of a longer-term structural change in market conditions or a shorter-term blip. Many fund managers promote low portfolio turnover (i.e. how frequently stocks are bought and sold over a specific time period) as a virtue to which they stick regardless of the market environment. While low turnover and not reacting to market volatility are often the correct decisions, they sometimes aren’t. With average annual turnover of 29% since its 2008 inception, the Strategy would be considered relatively low turnover. During this period, however, annual turnover has been as low as 17% (2009) and as high as 49% (2022). The relatively strong performance of the Strategy in the three years post 2022 is evidence that recognising the need to alter the portfolio significantly for a post COVID-19 world was the correct decision. Doing nothing and locking into a ‘low turnover, do nothing’ mindset would have led to significantly lower returns.
Currently, the longest held position in the Strategy is Visa, which was first purchased in 2016. Visa is the dominant player in the global market for electronic payments and accounts for about half of all credit card transactions and roughly three quarters of debit card transactions. Its economic moat stems from its powerful network effect and trusted brand. WCM Investment Management sees a positive moat trajectory as Visa leverages its unparalleled position in the payments space to take advantage of volume growth tailwinds coming from e-commerce, digital payments and international expansion.
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 (the Strategy) 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 Strategy 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. Strategy 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 Strategy 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.
