Proven World-class Manager
WCM has an outstanding long-term track record of global equity management. Its WCM Quality Global Growth Long Short Equity Strategy has outperformed the MSCI All Country World Index by 6.8% per annum since inception (30 June 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 investment process is based on the belief that corporate culture is one of the key drivers of the trajectory of a company’s competitive advantage, or ‘economic moat’. WCM aims to create value by owning businesses with growing competitive advantages that are aligned with great cultures that are difficult to replicate, while shorting businesses with deteriorating competitive advantages and poor cultures that are difficult to change.
Focused and Low-turnover Portfolio
The Strategy aims to invest in a portfolio of between 30-50 long, and 30-50 short companies. These companies are chosen from a universe of close to 2,100. This results in a high conviction portfolio ensuring that the investment team’s best ideas aren’t diluted by less compelling ones. The average holding period of each company is five to seven years. This means that each company is deeply researched prior to and post inclusion in the portfolio, resulting in avoidance of unnecessary and excessive trading.
Active All-weather Portfolio
A key to building long-term wealth is to maximise participation in rising markets while limiting the impact of market weakness. The Strategy has therefore been designed as an ‘all-weather one’ capable of strong relative performance in both up and down markets. WCM’s focus on culture and moat trajectory is a proven approach for achieving this objective. This is evidenced by their Quality Global Growth Long Short Equity strategy having delivered very low downside capture since inception, meaning on average the portfolio has contracted less than the benchmark during market declines.
Quality Global Stocks
WCM’s focus on quality global 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 portfolio has a relatively low exposure to banks and basic resources, the two heavyweight sectors in the ASX.
Traded on the ASX
The WCM Quality Global Growth Long Short Equity Strategy is available via a listed investment company, Contango Income Generator Limited (ASX:WLS), which means it can be easily bought and sold on the ASX just like any ordinary shares. Investors will have the convenience of CHESS/HIN statements.
This website has been prepared by Associate Global Partners Limited (CGA) ACN 080 277 998. Whilst WCM Investment Management (WCM) is the Manager of the WCM Quality Global Growth Long Short Equity Strategy, it has not been a party to the preparation of this fact sheet. Contango Income Generator Limited (CIE) has the same Portfolio Managers and investment team, the same investment objective and use the same philosophy and strategy as the WCM Quality Global Growth Long Short Equity Strategy. As WCM has no track record as the manager of CIE, this website makes extensive reference to the WCM Quality Global Growth Long Short Equity Strategy Composite (the Composite) to provide a better understanding of how the team has managed this strategy over a longer period. The Composite contains fully discretionary Quality Global Growth Long Short equity accounts. The Composite was created 30 June 2014.
WCM manages CIE’s portfolio according to the same investment principles, philosophy and execution of approach as those used for the Composite, 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 CIE’s portfolio and the Composite in the future.
For the same reason, although this website makes reference to the performance of WCM as the Investment Manager of the Composite, the data for the Composite 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 Composite is not the performance of CIE and is not an indication of how CIE 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 strategy. Performance figures are also shown for the MSCI All Country World Index (gross) Return in AUD, (MSCI ACWI (AUD)). 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 website 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 on 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. CGA its officers, employees, agents and related bodies corporate believe that the information on this website 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.