Overview

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.

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 15.9% per annum since inception (31 December 2014), with total firm assets under management growing to over A$85.6 billion (at 30 June 2020).

Switzer Asset Management Limited is the trustee for the Fund.

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

Fund Objectives

The performance of objective of the portfolio is:

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

Platforms

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

  • Powerwrap
  • Ausmaq

More Information

Key Fund Info

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%

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 15.9% 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.

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 68% since inception, meaning the portfolio has experienced on average 68% of the loss of the benchmark during market declines. To read more, click here.

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.

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$85.6 billion (as at 30 June 2020) 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

Download the Information Memorandum
Download the Information Memorandum

Download and read the Information Memorandum (IM)

Download
Complete the application form
Complete the application form

The application form can be accessed via the link below. Please contact 1300 001 750 if you require assistance.

Apply now