WCM Quality Global Growth August 2021 NTA Statement & Portfolio Update

We are pleased to provide you with a summary report on the performance of the WCM Quality Global Growth Equity Strategy (the Strategy) in August 2021.

The Strategy1 delivered a return of 2.89% during the month. The Strategy has delivered returns in excess of the benchmark MSCI All Country World Index over six months, twelve months, three years, five years, ten years and since inception.

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.

The Strategy is conveniently available via four investment structures to accommodate the differing preferences of individual investors. You can read the full investment update for each of these products on the links below:

Strategy Update

Global equity markets chalked up their seventh consecutive monthly gain in August, with several major indices hitting multiple new all-time highs. The seven-month winning streak for European equities is the first time this has been achieved since the end of financial crisis in 2012. While COVID-19 infections linked to the Delta variant continue to rise across the globe, rising vaccination rates are allowing most major economies to avoid the need to return to economically crippling lockdowns. Economic data continues to show strong growth although some leading indicators, such as the purchasing managers’ indices, suggest the rate of this growth may be close to peaking.

With another (relatively) high inflation report in the US, markets took comfort from Federal Reserve Chairman, Jerome Powell’s speech at Jackson Hole, in which he suggested the spike in the consumer price index is likely to be temporary. As such, the market’s expectation is that a tapering of the Federal Reserve’s bond purchasing program will remain on hold until closer to year end. At a regional level, there was little difference between the returns of developed and emerging markets, the latter recovering from another China regulatory related scare earlier in the month. Performance dispersion was also limited at a sector level, with Materials the only sector posting a negative return. Factor performance varied by region. Growth and quality outperformed in Europe while value measures were favoured in the US and emerging markets.

Portfolio relative performance during the month was helped by the overweight exposure to Technology and underweight position in Energy. Sector allocations detracting from performance included Consumer Discretionary (overweight in the portfolio relative to the benchmark) and the underweight position in Financials. Stock selection was positive in the Healthcare and Financials sectors, but a drag on performance in Technology and Consumer Staples.

Entegris, Inc. is an American provider of products and systems that purify, protect, and transport critical materials used in the semiconductor device fabrication process. The business is leveraging its superior technology, reputation and brand as well as its very sticky relationships with customers to expand its moat. Tailwinds include the growing complexity of semiconductor manufacturing that requires additional layers of materials.

Investment process is a key focus for capital allocators and researchers when forming a view on prospective money managers for their clients. A lot of this research focuses on the process money managers follow for identifying new investment opportunities. However, an equally important factor which often gets overlooked is the manager’s sell discipline. WCM’s process, based on investing in companies with expanding economic moats with cultures aligned to their moat trajectory, is applied as both a buy and sell discipline. If the investment team can no longer make a case that a company’s moat is still expanding, it is sold regardless of recent performance or valuation. Positions can also be sold if the team identifies a more attractive opportunity than an existing one, or the investment thesis has played out and the valuation is no longer considered attractive to its long-term growth potential. A recent example of the former was the sale of Cooper Industries in favour of WuXi Biologics; and an example of the latter was the sale of Boston Scientific Corporation.

Copyright © 2021 Contango Asset Management Limited (ABN 56 080 277 998)

DISCLAIMER: Switzer Asset Management Limited (SAML) (ABN 26 123 611 978, AFSL 312247) is a wholly owned subsidiary of Contango Asset Management Limited, a financial services business listed on the ASX (CGA). CGA has prepared this material for general information purposes only for WCM Global Growth Limited, a listed investment company (ASX:WQG).

SAML is the responsible entity for WCM Quality Global Growth Fund (Quoted Managed Fund)(ARSN 625 955 240)(ASX:WCMQ) and WCM Quality Global Growth Fund (Managed Fund)(ARSN 630 062 047). SAML and CGA are authorised representatives of ST Funds Management Limited (AFSL 416778) to provide general advice.

Contango International Management Pty Limited (CIML) (ABN 33 617 319 123) is the investment manager for WQG and is an authorised representative of SAML. 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 does not hold an AFSL. WQG and CIML are part of the Contango Group.

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, CGA or SAML. 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 SAML, CGA, 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.