We are pleased to provide you with a summary report on the performance of the WCM Quality Global Growth Equity Strategy (the Strategy) in March 2024.

The Strategy¹ delivered a return of 3.14% during the month, outperforming the benchmark MSCI All Country World Index return of 2.94%. The Strategy has delivered returns in excess of the benchmark MSCI All Country World Index over one month, one, five and 10 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 find the monthly investment update under ‘More Information’ for each of these products on the links below:

• WCM Global Growth Limited (ASX:WQG)
• WCM Quality Global Growth Fund (Quoted Managed Fund) (ASX:WCMQ)
• WCM Quality Global Growth Fund (Managed Fund) (Unhedged)
• WCM Quality Global Growth Fund (Managed Fund) (Hedged)

Strategy Update

Global equity markets recorded their fifth consecutive month of positive returns in March with several major indices reaching all-time highs. The March quarter was also the best quarterly start for equity markets for five years. This buoyancy in markets has been driven by the combination of growing optimism of a soft (or even no) landing for the global economy plus expectations of lower interest rates by year end. As expected, the US Federal Reserve and European Central Bank left their respective benchmark interest rates unchanged in March. Less expected however was the 25-basis point cut in interest rates by the Swiss National Bank, the first such move of this cycle by a developed market central bank. The Bank of Japan also sprung a surprise by ending its 8-year period of negative interest rates. Market returns during the month were broad based across sectors and regions. China however continues to be an outlier with a sub-par performing economy weighing on the returns of its equity market. In terms of factors, value outperformed growth during the month and large capitalisation stocks outperformed small.

Individual stock selection contributed positively to the portfolio’s performance relative to the Benchmark in March. The individual sectors within the portfolio where this was most evident were Health Care, Consumer Discretionary and Industrials. In contrast, stock selection within the Consumer Staples and Financial sectors was the biggest detractor from relative returns. In terms of sector allocation relative to the Benchmark, the major positives were the underweight position in Consumer Staples and overweights to Industrials and Materials. The portfolio’s zero allocation to both Energy and Utilities and overweight exposure to Health Care had a negative impact on relative returns during the month.

Positive style factors including the outperformance of growth versus value contributed to the strong relative returns of the WCM Quality Global Growth Equity Strategy in the March quarter. However, the strong underlying fundamentals of the individual companies in the portfolio was evident also. In the most recent reporting season, circa 90% of portfolio holdings met or exceeded market expectations. Portfolio activity was relatively low during the quarter, with two positions added and removed. One of the new positions initiated was Silicon Valley based AppLovin, a leading advertising network and mediation platform operating within the rapidly growing mobile app industry. AppLovin’s software is designed to help game developers monetise players’ experience through in-app purchases (i.e. mediation) and collect and use data analytics to improve content. The company’s moat is a result of its global scale, data trove and robust technology. The expansion of this moat comes from leveraging AI/machine learning to help its customers make better business decisions.