Overview

The WCM International Small Cap Growth 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 (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 11.1% per annum since inception (31 December 2014), with total firm assets under management growing to over $57 billion (at 30 June 2019).

Switzer Asset Management Limited is the trustee for the Fund.

Fund Objectives

  • To exceed the benchmark over rolling three-year time periods, and
  • to experience lower volatility than the benchmark.

Benefits

Proven world-class manager Unique investment process
High conviction portfolio Downside protection

Downloads & Forms

  download now
Download an
Information Pack

Overview

The WCM International Small Cap Growth 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 (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 11.1% per annum since inception (31 December 2014), with total firm assets under management growing to over $57 billion (at 30 June 2019).

Switzer Asset Management Limited is the trustee for the Fund.

Fund Objectives

  • To exceed the benchmark over rolling three-year time periods, and
  • to experience lower volatility than the benchmark.

Benefits

Proven world-class manager Unique investment process
High conviction portfolio Downside protection
Download an
Information Pack

Key Fund Info

Fund Facts

Key Fund Facts

Fund Name WCM International Small Cap Growth Fund (Managed Fund)
Trustee Switzer Asset Management
Investment Manager WCM Investment Management
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 $50,000 initial investment, $25,000 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 ~30%
Maximum industry exposure ~25%
Maximum sector exposure ~35%
Maximum position size ~5%

Media

The Executive Series - CommSec

WCM Investment Management Co-CEO, Kurt Winrich speaks with Tom Piotrowski about WCM’s launch of its Exchange Traded Managed Fund (ETMF).

Read more +
More Media

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 1. 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.

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 1, meaning the portfolio has experienced on average 57% of the loss of the benchmark during market declines. To read more, click here.

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.

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.

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.

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.

1. Inception Date 31 December 2014

The Manager

Founded in 1976, WCM Investment Management 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$57 billion of assets on behalf of institutional and retail investors around the world including Australia.

Key investment professionals include:

Sanjay Ayer

Portfolio Manager & Business Analyst

Greg Ise

Portfolio Manager & Business Analyst

How to Invest

Frequently Asked Questions

  • What are the fees?

    The Management Fee is 1.4% per annum. This is estimated and accrued daily as a percentage of the Fund’s NAV and reflected in the daily unit price of the Fund. The amount is paid monthly to the Trustee from the assets of the Fund.

    A performance fee of 20% of the excess return of the Fund (after the Management Fee) above the Benchmark is payable. The Performance Fee is calculated for each 6-month period ending 30 June and 31 December (each a Calculation Period) based on the end of period portfolio value after management fees and paid after each Calculation Period.

    Performance Fees are estimated daily and reflected in the NAV per Unit.

  • How does the Fund select investments?

    The two key criteria for any company to be considered for inclusion in this portfolio are i) a rising competitive advantage (or expanding economic moat) and ii) 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. Their research therefore is focused on identifying those companies with a positive moat trajectory as measured by a rising return on invested capital (ROIC) as opposed to those with a large but static or declining moat.

    WCM also strongly believes that corporate culture is a key determinant of a firm’s ability to achieve a consistently growing moat. Starkly diverging performance of two seemingly very similar companies in the same industry can often be explained by their differing corporate culture. WCM has developed a proprietary approach to analysing corporate culture and has investment team members solely dedicated to this part of their process.

  • What does the Fund invest in?

    The Fund will invest in a high conviction, actively managed diversified portfolio of listed, quality, high growth small capitalisation companies sourced from developed (ex-US) and emerging markets, with the primary objective of providing long-term capital growth. The Fund will typically comprise between 50 and 70 securities.

  • How and when can I access my money?

    Withdrawal requests received on or before 12.00pm AEST on a Business Day will generally be processed on that Business Day. If your request is accepted, you will receive the Withdrawal Price calculated for that Business Day. Withdrawal requests received after 12.00pm AEST on a Business Day will generally be processed on the next Business Day. If your request is accepted, you will receive the Withdrawal Price calculated for the next Business Day. Redemption payments will generally be made within 3 – 5 Business Days

  • How do I invest?

    1. Read the Information Memorandum

    You can download a copy of the Information Memorandum here.

    2. Complete an application form

    You can access the online application form here.

  • What are the risks of investing in the Fund?

    As with all investments, there are risks involved with an investment in the WCM International Small Cap Growth Fund. It is important to understand that the value of investments may rise or fall, investment returns will vary, future returns may differ from past returns, investment returns are not guaranteed and investors may lose the money they have invested in the Fund. For more detailed information relating to the risks of the Fund, please refer to the Information Memorandum for further details on risks.