We are pleased to provide you with a summary report on the performance of the WCM Quality Global Growth Equity Strategy (the Strategy) for November 2025.
The Strategy1 delivered a return of -3.14% during the month, compared with the benchmark MSCI All Country World Index (the Benchmark) return of -0.16%. The Strategy has delivered returns in excess of the Benchmark over three and 10 years, and since inception.
Strategy Update
While global equities ended November close to unchanged, it was very much a month of two halves. The first half of the month saw weakness in risk assets, including equities, before a strong recovery towards month end. The US government shutdown weighed on markets during the first half as did valuation ‘bubble’ concerns over artificial intelligence (AI) related stocks. By month end, the 43-day shutdown had ended and investors’ focus turned positively towards a potential reduction in US interest rates in December. This followed the post shutdown release of previously withheld economic data, including a weaker than expected private sector employment report. The growing concern about the lofty valuations of AI related stocks was the primary driver behind the intra market performance at a sector, country and factor level. Notwithstanding a very strong quarterly earnings report from NVIDIA Corporation, Technology was amongst the weakest sectors. Markets with a relatively high weighting to Technology, including the US, Taiwan and Korea ended the month flat or down and growth underperformed value.
The underperformance of the WCM Quality Global Growth Equity Strategy (the Strategy) in November was in the most part due to stock selection, with the largest negative contributions coming from holdings in the Financials, Communication Services and Industrials sectors. Sectors which contributed positively from a stock selection perspective included Technology and Materials. In terms of the sector allocation effect, the Strategy’s above benchmark exposure to Materials and Health Care added to relative performance as did the underweight position in Consumer Discretionary. In contrast, the zero allocation to Energy and Consumer Staples was a drag on performance versus the market.
”Picks-and-shovels” investing involves buying stocks that provide the tools, services or technology needed by a specific industry. The idea originates from the US gold rush during the 1800s, when the suppliers of picks and shovels fared much better than the prospectors who purchased them. The investment team at WCM Investment Management (WCM) often apply this approach when it is difficult to make a high conviction call on which companies will be the winners from a specific industry secular growth theme. By investing in the suppliers to the main participants in this industry, WCM can access the secular growth theme without having to make a binary, unattractive risk-return decision. New York-based portfolio holding, Corning Incorporated (Corning), represents a picks and shovels approach to capitalising on the long-term growth in digital infrastructure. Corning produces engineered, durable high-tech glass and fiber-optic cables which enhance the performance of AI data centres. Tailwinds come from the AI data centre build out, along with telecom companies expanding their fiber networks. The company’s competitive advantages are significant and growing, including its scale, extensive expertise in manufacturing complex products and a strategy which involves building facilities near their end markets; this approach shortens supply chains and aligns favourably with trade policies. Its culture is very customer-centric, including close collaboration to help solve client-specific challenges.
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.
