Global small cap stocks that present some of the best growth opportunities for Australian investors

  • When: Thursday 5th of March at 11am AEDT
  • Host: Marty Switzer, CEO, Associate Global Partners
  • Presenter: Greg Ise, Portfolio Manager of the WCM International Small Cap Growth Fund

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Despite widespread fears of a negative economic impact from the coronavirus outbreak and continued geo-political uncertainty, the current environment continues to present opportunities for global growth investors. This is the view of Greg Ise, Portfolio Manager at US-based WCM Investment Management.

Since launching in the US five years ago, WCM’s International Small Cap Growth strategy has delivered an average return of 22.7%* and annualised outperformance of over 10.9%*. What’s more, this strong performance has been consistent throughout market cycles.

The strategy is available for a limited time to wholesale Australian investors via the WCM International Small Cap Growth Fund (Managed Fund) (the Fund).

In this session you will learn:

  • Two stocks WCM has identified with continued long-term growth in their economic moat,
  • The most important factors to look for when selecting global growth companies,
  • How the portfolio has delivered such consistent outperformance throughout market cycles,
  • WCM’s unique strategy that has minimised losses in downward markets, while growing strongly in upward markets,
  • How the Fund gives Australian investors exposure to an asset class that has been historically hard to access.
*As at 31 January 2020
x FULL DISCLOSURE

Important Information

WCM International Small Cap Growth Fund (Managed Fund) Disclosure

The WCM International Small Cap Growth Fund (Managed Fund) is only available to Wholesale Investors.

The above information 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. SAML is the trustee of WCM International Small Cap Growth Fund (Managed Fund).

Whilst WCM Investment Management (WCM) is the Manager and Adviser of WCM International Small Cap Growth Fund (Managed Fund) and applies its International Small Cap Growth strategy, it has not been a party to the preparation of this email. WCM has been managing its International Small Cap Growth Strategy since 2014. WCM International Small Cap Growth Fund (Managed Fund) has the same Portfolio Managers, utilises the WCM investment team and has the same investment objective as the WCM International Small Cap Growth Composite.

As WCM International Small Cap Growth Fund (Managed Fund) has only been in operation for a relatively short period of time, this email makes extensive reference to the WCM International Small Cap Growth Composite (“SIG”) to provide a better understanding of how the team has managed the strategy over a longer period. The Composite contains fully discretionary SIG equity accounts. The SIG Composite 31 December 2014.

WCM manages WCM International Small Cap Growth Fund (Managed Fund) according to the same investment principles, philosophy and execution of approach as those used for the SIG 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 each of the portfolios in the future.

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 email 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.

WCM International Small Cap Growth Composite Disclosure

N.A. – Information is not statistically meaningful due to an insufficient number of portfolios in the composite for the entire year. *3 year annualized standard deviations not shown due to less than 36 months’ performance.

N.A.2 – The three-year annualized ex-post standard deviation of the composite and benchmark is not presented because 36 monthly returns are not available.

1Assets figures on this page present GIPS®-eligible assets and do not include model assets. Assets figures elsewhere in this document may include model assets

International Small Cap Growth (SIG) Composite contains fully discretionary Small International Growth equity accounts. WCM seeks to invest in companies in traditional growth industries with high or rising returns on invested capital in excess of cost of capital, low or no debt, high or rising margins, and a history of sustainable growth. These companies should then have a dominant tailwind, a growing economic moat, a robust culture driven by a visionary leadership, and have an attractive valuation. For comparison purposes, the composite is measured against the MSCI ACWI ex US Small Cap Index. There is no account minimum for this composite. WCM is an equity portfolio investment manager, registered with the U.S. Securities and Exchange Commission and is defined as an independent investment management firm that is not affiliated with any parent organization. Total Product Assets are defined to include all client assets managed to the Small International Growth style. The firm maintains a complete list and description of composites, which is available upon request. Results are based on fully discretionary accounts under management, including those accounts no longer with the firm. For comparison purposes, performance is presented gross of foreign withholding taxes on dividends, interest income, and capital gains for the composite and the benchmark (MSCI ACWI ex US Small Cap). Accounts experiencing cash flows equal to or greater than 20% of their value are temporarily removed from the composite during the month in which the cash flows occur. Accounts rejoin the composite the following month. Additional information regarding the treatment of significant cash flows is available upon request. Past performance is not indicative of future results.

The U.S. Dollar is the currency used to express performance. Returns are presented gross and net of fees and include the reinvestment of all income. Net of fee performance is calculated using actual management fees. The annual composite dispersion presented is an asset-weighted standard deviation calculated for the accounts in the composite the entire year. Additional information regarding policies for calculating and reporting returns is available upon request. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. The management fee schedule is as follows: 1.00% on all assets. Fees are negotiable. The International Small Cap Growth (SIG) Composite was created 31 Dec 2014. Prior to September 30, 2016, the composite was referred to as the Small Cap International Growth (SIG) Composite. WCM Investment Management claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS®standards. WCM Investment Management has been independently verified for the periods January 1, 2017 through December 31, 2018 by ACA Performance Services, LLC and January 1, 1993 through December 31, 2016 by Ashland Partners & Company LLP. A copy of the verification report is available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS® standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS®standards. Verification does not ensure the accuracy of any specific composite presentation.

Global small cap stocks that present some of the best growth opportunities for Australian investors

  • When: Thursday 5th of March at 11am AEDT
  • Host: Marty Switzer, CEO, Associate Global Partners
  • Presenter: Greg Ise, Portfolio Manager of the WCM International Small Cap Growth Fund

Despite widespread fears of a negative economic impact from the coronavirus outbreak and continued geo-political uncertainty, the current environment continues to present opportunities for global growth investors. This is the view of Greg Ise, Portfolio Manager at US-based WCM Investment Management.

Since launching in the US five years ago, WCM’s International Small Cap Growth strategy has delivered an average return of 22.7%* and annualised outperformance of over 10.9%*. What’s more, this strong performance has been consistent throughout market cycles.

The strategy is available for a limited time to wholesale Australian investors via the WCM International Small Cap Growth Fund (Managed Fund) (the Fund).

In this session you will learn:

  • Two stocks WCM has identified with continued long-term growth in their economic moat,
  • The most important factors to look for when selecting global growth companies,
  • How the portfolio has delivered such consistent outperformance throughout market cycles,
  • WCM’s unique strategy that has minimised losses in downward markets, while growing strongly in upward markets,
  • How the Fund gives Australian investors exposure to an asset class that has been historically hard to access.
*As at 31 January 2020
x FULL DISCLOSURE

Important Information

WCM International Small Cap Growth Fund (Managed Fund) Disclosure

The WCM International Small Cap Growth Fund (Managed Fund) is only available to Wholesale Investors.

The above information 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. SAML is the trustee of WCM International Small Cap Growth Fund (Managed Fund).

Whilst WCM Investment Management (WCM) is the Manager and Adviser of WCM International Small Cap Growth Fund (Managed Fund) and applies its International Small Cap Growth strategy, it has not been a party to the preparation of this email. WCM has been managing its International Small Cap Growth Strategy since 2014. WCM International Small Cap Growth Fund (Managed Fund) has the same Portfolio Managers, utilises the WCM investment team and has the same investment objective as the WCM International Small Cap Growth Composite.

As WCM International Small Cap Growth Fund (Managed Fund) has only been in operation for a relatively short period of time, this email makes extensive reference to the WCM International Small Cap Growth Composite (“SIG”) to provide a better understanding of how the team has managed the strategy over a longer period. The Composite contains fully discretionary SIG equity accounts. The SIG Composite 31 December 2014.

WCM manages WCM International Small Cap Growth Fund (Managed Fund) according to the same investment principles, philosophy and execution of approach as those used for the SIG 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 each of the portfolios in the future.

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 email 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.

WCM International Small Cap Growth Composite Disclosure

N.A. – Information is not statistically meaningful due to an insufficient number of portfolios in the composite for the entire year. *3 year annualized standard deviations not shown due to less than 36 months’ performance.

N.A.2 – The three-year annualized ex-post standard deviation of the composite and benchmark is not presented because 36 monthly returns are not available.

1Assets figures on this page present GIPS®-eligible assets and do not include model assets. Assets figures elsewhere in this document may include model assets

International Small Cap Growth (SIG) Composite contains fully discretionary Small International Growth equity accounts. WCM seeks to invest in companies in traditional growth industries with high or rising returns on invested capital in excess of cost of capital, low or no debt, high or rising margins, and a history of sustainable growth. These companies should then have a dominant tailwind, a growing economic moat, a robust culture driven by a visionary leadership, and have an attractive valuation. For comparison purposes, the composite is measured against the MSCI ACWI ex US Small Cap Index. There is no account minimum for this composite. WCM is an equity portfolio investment manager, registered with the U.S. Securities and Exchange Commission and is defined as an independent investment management firm that is not affiliated with any parent organization. Total Product Assets are defined to include all client assets managed to the Small International Growth style. The firm maintains a complete list and description of composites, which is available upon request. Results are based on fully discretionary accounts under management, including those accounts no longer with the firm. For comparison purposes, performance is presented gross of foreign withholding taxes on dividends, interest income, and capital gains for the composite and the benchmark (MSCI ACWI ex US Small Cap). Accounts experiencing cash flows equal to or greater than 20% of their value are temporarily removed from the composite during the month in which the cash flows occur. Accounts rejoin the composite the following month. Additional information regarding the treatment of significant cash flows is available upon request. Past performance is not indicative of future results.

The U.S. Dollar is the currency used to express performance. Returns are presented gross and net of fees and include the reinvestment of all income. Net of fee performance is calculated using actual management fees. The annual composite dispersion presented is an asset-weighted standard deviation calculated for the accounts in the composite the entire year. Additional information regarding policies for calculating and reporting returns is available upon request. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. The management fee schedule is as follows: 1.00% on all assets. Fees are negotiable. The International Small Cap Growth (SIG) Composite was created 31 Dec 2014. Prior to September 30, 2016, the composite was referred to as the Small Cap International Growth (SIG) Composite. WCM Investment Management claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS®standards. WCM Investment Management has been independently verified for the periods January 1, 2017 through December 31, 2018 by ACA Performance Services, LLC and January 1, 1993 through December 31, 2016 by Ashland Partners & Company LLP. A copy of the verification report is available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS® standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS®standards. Verification does not ensure the accuracy of any specific composite presentation.

Register for the webinar

Contact us

WCM International Small Cap Growth Fund

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

The Fund provides wholesale 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.

Performance

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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 11.1% 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. To learn more, click here.

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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.

Unique Investment Process

WCM’s two key criteria for any company to be considered for inclusion in the International Small Cap Growth strategy are: 1) a rising competitive advantage (or expanding economic moat) and 2) 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.

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 fund has been designed as an ‘all weather one’ capable of strong relative performance in both up and down markets. WCM’s focus on high quality companies with expanding moats is a proven approach for achieving this objective. This is evidenced by their International Small Cap Growth strategy having delivered downside capture of 57% since inception, meaning the portfolio has experienced on average 57% of the loss of the benchmark during market declines. To read more, click here.

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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.

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.

How To Invest

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