WCM International Small Cap Growth Fund (Managed Fund)

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Overview
Platforms

Overview

The WCM International Small Cap Growth Fund (Managed Fund) (the Fund) is an Australian managed investment scheme investing in global equities.

The Fund provides investors with access to a high conviction, actively managed diversified portfolio of listed, quality, high growth small capitalisation companies sourced from developed (ex US) and emerging markets.

The portfolio is managed by WCM Investment Management, LLC (WCM), a California-based specialist global equity firm with an outstanding long-term investment track record.

WCM's investment process is based on the belief that corporate culture is the biggest influence on a company's ability to grow its competitive advantage or 'moat'. This process has resulted in WCM's International Small Cap Growth strategy outperforming the MSCI ACWI ex US Small Cap Index by an annualised 5.58% per annum since inception (31 December 2014), with total firm assets under management growing to over A$114.4 billion (as at 30 September 2023).

The performance objective of the portfolio is to exceed its benchmark over rolling three-year time periods and to experience lower volatility than the benchmark.

Proven world-class manager
Unique investment process
High conviction, long-only portfolio

SQM Research has given the WCM International Small Cap Growth Fund a ‘Superior’ rating. SQM Research concludes the Fund has an appreciable potential to outperform over the medium-to-long term.

Platforms

The WCM International Small Cap Growth Fund (Managed Fund) is available via the following platforms:

Ausmaq
HUB24
Macquarie
Managed Accounts
Netwealth
PowerWrap
Praemium

Key Fund Info

Key Fund Facts

Fund Name	WCM International Small Cap Growth Fund (Managed Fund)
Responsible Entity	AGP Investment Management Limited
Investment Manager	WCM Investment Management, LLC
Benchmark	The MSCI All Country World Index ex-US Small Cap USD Gross Total Return Index (with gross dividends reinvested, reported in Australian dollars and unhedged)
Minimum Investment	$20,000 initial investment, $10,000 additional investment
Management fee	1.40%
Performance Fee	20% excess return above the Benchmark after Management Fee

Investment Guidelines

Cash & cash equivelants	0% – 10%
Maximum emerging markets exposure	~35%
Maximum industry exposure	~25%
Maximum sector exposure	~50%
Maximum position size	~5%

Why Invest

Proven World-class Manager

WCM has an outstanding long-term track record of global equity management. Their International Small Cap Growth strategy has outperformed the MSCI ACWI ex US Small Cap Index by an annualised 5.58% since its inception in 2014. Consistency of performance has been a large factor behind the firm managing assets on behalf of many of the world’s biggest pension plans including a number of large Australian superannuation funds.

Unique Investment Process

WCM’s two key criteria for any company to be considered for inclusion in the International Small Cap Growth strategy are:

a rising competitive advantage (or expanding economic moat) and
a corporate culture that supports the expansion of this moat.

WCM believes the direction of a company’s economic moat is of more importance than its absolute width or size.

High Conviction, Long-only Portfolio

WCM’s investment strategy is to construct and maintain a high conviction, actively managed long-only equities portfolio invested in listed securities of developed market (ex-US) and emerging market smaller market capitalisation companies. The Fund will be invested in quality international growth businesses with high returns on invested capital, superior growth prospects and low debt that are fundamentally attractively valued. The portfolio will typically comprise between 50 and 70 securities.

Quality International Stocks

WCM’s focus on quality international stocks with expanding economic moats leads it towards high growth sectors such as technology, healthcare and consumer. For Australian investors this provides significant diversification benefits, as these sectors represent a relatively small proportion of the local market. The WCM International Small Cap Growth Fund has a relatively low exposure to banks and basic resources, the two heavyweight sectors in the ASX.

Gain Exposure to Small-cap International Companies

The Fund provides investors with exposure to developed (ex-US) and emerging market listed, smaller companies, industries and sectors that are limited or unavailable in Australia. Adding an allocation to international small cap growth may deliver diversification benefits to your investment portfolio.

Disclaimer

This website has been prepared by Associate Global Partners Limited (CGA) ACN 080 277 998 on behalf of its fully owned subsidiaries; Switzer Asset Management Limited (SAML) ACN 26 123 611 978, AFSL 312247 and Contango International Limited (CIM) ACN 617 319 123, CAR No. 1254169. SAML is the Responsible Entity of the WCM Quality Global Growth Fund (Quoted Managed Fund) ARSN 625 955 240 (ASX: WCMQ), WCM Quality Global Growth Fund (Managed Fund) ARSN 630 062 047 and trustee of WCM International Small Cap Growth Fund (Managed Fund). CIM is the Investment Manager of WCM Global Growth Limited (ASX: WQG)

Whilst WCM Investment Management (WCM) is the Manager and Adviser of WQG, WCMQ, WCM Quality Global Growth Fund (Managed Fund) and WCM International Small Cap Growth Fund (Managed Fund) and applies its Quality Global Growth and International Small Cap Growth strategies to the respective funds, it has not been a party to the preparation of this fact sheet. WCM has been managing its Quality Global Growth Strategy since 2008 and its International Small Cap Growth Strategy since 2014. WQG, WCMQ, and WCM Quality Global Growth Fund (Managed Fund) have the same Portfolio Managers and investment team, the same investment objective and use the same philosophy and strategy as the WCM Quality Global Growth Composite. WCM International Small Cap Growth Fund (Managed Fund) has the same Portfolio Managers, utilises the WCM investment team and has the smale investment objective as the WCM International Small Cap Growth Composite.

As WQG, WCMQ and WCM Quality Global Growth Fund (Managed Fund) have only been in operation for a relatively short period of time, this fact sheet makes extensive reference to the WCM Quality Global Growth Composite (“QGG”) and WCM International Small Cap Growth Composite (“SIG”) to provide a better understanding of how the team has managed the strategies over a longer period. The Composites contains fully discretionary QGG equity and SIG equity accounts. The QGG Composite was created 31 March 2008 and the SIG Composite 31 December 2014.

WCM manages WQG, WCMQ ,WCM Quality Global Growth Fund (Managed Fund) and WCM International Small Cap Growth Fund (Managed Fund) according to the same investment principles, philosophy and execution of approach as those used for the QGG and SIG Composites respectively. However, it should be noted that due to certain factors including, but not limited to, differences in cash flows, fees, expenses, performance calculation methods, and portfolio sizes and composition, there may be variances between the investment returns demonstrated by each of the portfolios in the future.

For the same reason, although this website makes reference to the performance of WCM as the Investment Manager of the Composites, the data for the Composites is provided purely for indicative purposes to demonstrate how WCM has performed historically in its role as the investment manager to this specific strategy. The performance for the composites is not the performance of the Funds’ and is not an indication of how WQG, WCMQ, WCM Quality Global Growth Fund (Managed Fund) and WCM International Small Cap 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 services by WCM. It is provided for information purposes only.

Any performance data quoted represents past performance of the respective strategy. Performance figures are also shown for the MSCI All Country World Index (gross) Return, (“MSCI AC World Index”). The MSCI All Country World Index (gross) is a trademark/service mark of Morgan Stanley Capital International. MSCI All Country World Index (gross) is designed to measure global developed and emerging equity market performance. The index is unmanaged, is market-value weighted and is shown for illustration only and cannot be purchased directly by investors.

The content in this fact sheet has been prepared without taking into account the objectives, financial situation or needs of any particular individual. It does not constitute advice. Consider the appropriateness of the information regarding your circumstances. Please read the relevant product disclosure statement or offer document and obtain appropriate financial advice before making any investment decisions.

Forecasts in this website are predictive in character, based on numerous assumptions including the forecast outlook for key variables and may be affected by various factors including inaccurate assumptions, risks and unforeseen events. Accordingly, actual results may differ materially from those forecasted. SAML its officers, employees, agents and related bodies corporate believe that the information in this document is correct at the time of compilation but do not warrant the accuracy of that information.

It is recommended that investors seek professional investment, taxation and/or financial or other relevant and/or applicable advice to assist investors determine the individual tolerance to risk and the investors need to attain a particular return on your investment. In no way should the investor rely on the information contained in this performance data. We strongly encourage you to obtain independent professional, financial, investment, taxation or legal advice before making a decision to invest in any Fund.

The Manager

Founded in 1976, WCM Investment Management, LLC is a California-based specialist active global and emerging markets asset management firm.

The firm is majority employee owned and manages in excess of A$114.4 billion (as at 30 September 2023) of assets on behalf of institutional and retail investors around the world including Australia.