We are pleased to provide you with a summary report on the performance of the WCM Quality Global Growth Strategy (the Strategy) for August 2026.
The Strategy1 delivered a return of -0.71% during the month, compared with the benchmark MSCI All Country World Index (the Benchmark) return of 0.65%. The Strategy has delivered returns in excess of the Benchmark over three and 10 years and since inception.
Strategy Update
Global equity markets moved higher in August, supported by positive corporate earnings and stronger economic data. At the company level, investors’ attention remained focused on those businesses set to benefit from the boom in Artificial Intelligence (AI) related capital expenditure. NVIDIA’s shares recovered strongly from July’s decline after reporting a doubling in revenues over the previous 12 months and elsewhere in the Technology sector, there were strong gains from several of the larger software companies. Materials, viewed as a beneficiary of AI infrastructure spending, also outperformed the market, as did Energy as the oil price rose with continued concerns over supply disruptions. Of the major developed markets, the US and Japan led the way, while Taiwan and South Korea – both key players in the AI-related supply chain – were among the better performing emerging markets. Factor performance was broadly even, with growth and value delivering similar returns, as did large and small caps.
Attribution analysis for the month showed that on the sector allocation side, holding no Consumer Staples was the largest positive contributor to the performance versus the Benchmark. Avoiding Utilities also helped as did the overweight position in Materials. These gains were partly offset by an overweight position in Industrials and Real Estate, alongside the underweight position in Information Technology. In terms of stock selection, the portfolio’s Consumer Discretionary positions added the most value against the Benchmark, followed by Financials and Industrials. Conversely, selection within Information Technology detracted the most, with Health Care and Materials also weighing on relative returns.
A key challenge facing all active global equity managers is determining how best to position for the AI theme. To date, the WCM Quality Global Growth Strategy has benefited from owning the capital suppliers to the AI buildout: the “picks and shovels” of the theme, such as hard drives, fibre, memory and networking. But a gold rush only pays the shovel sellers for as long as someone keeps striking gold. Assuming the returns are there to justify it, the greater gains shift from those benefiting from supply chain bottlenecks to those with direct exposure to the miners finding the gold. At this stage of the cycle, while continuing to own more semiconductors than mega-cap internet, it makes sense to increase exposure to the spenders. To this end, both Meta and Alphabet were added to the portfolio in the June quarter.
Headquartered in California, Alphabet owns Google Search, YouTube, Google Cloud, its own custom Tensor Processing Unit (TPU) chips, and the Gemini model, giving it a unique claim on every layer of the AI stack. The trajectory of its moat is positive. Alphabet controls the silicon, a frontier model, its own data centres, and distribution across 13 products that each have more than a billion users. This stack monetises through search, cloud and external TPU demand. Alphabet is also undergoing a cultural shift for the AI era by reducing management layers, shipping at speed, favouring voluntary buyouts over layoffs, and applying a disciplined approach to capital allocation focused on return on invested capital.
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.
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