Even amid the past 10-year dominance of US equity markets, most of the top 50 performing companies in the world were located outside the US.1 That’s why careful, highly skilled selection of international equities may be a smart way for investors to diversify their portfolios for greater growth and less volatility potential.2

WCM Investment Management provides innovative growth equity solutions that go beyond borders and benchmarks to find what they believe are the best opportunities the world has to offer for long-term growth potential. Through in-depth, fundamental proprietary research, WCM focuses on companies with growing competitive advantages and superior corporate culture. This combination WCM believes enables them to seek long-term excess returns and mitigate downside risk for their concentrated portfolios.


Fund Results

Whether you are looking to fill an international, emerging markets, international small cap or global equity gap in your portfolio, WCM has a strategy, along with competitive performance, for your consideration.

To gauge how well a portfolio fared relative to its market index during periods when the market was rising or declining, consider the up capture and down capture ratios, below. For example, a down capture ratio less than 100 shows a portfolio outperformed the index during a declining market. Meanwhile, an upside capture ratio of less than 100 shows the portfolio lagged the index during a rising market.

Overall Rating: out of 396 funds

Morningstar Category

Foreign Large Growth

Performance:

Institutional Class Index: MSCI ACWI ex US

 

Up Capture

Down Capture

1 year

120.38%

73.37%

3 years

101.46%

70.14%

5 years

98.12%

58.02%

Life of Class

93.98%

65.22%

Overall Rating: out of 712 funds

Morningstar Category

Diversified Emerging Markets

Performance:

Institutional Class Index: MSCI Emerging Markets

 

Up Capture

Down Capture

1 year

130.08%

104.42%

3 years

99.71%

93.40%

5 years

91.07%

79.78%

Life of Class

89.00%

83.08%

Overall Rating: out of 722 funds

Morningstar Category

World Large Stock

Performance:

Institutional Class Index: MSCI ACWI

 

Up Capture

Down Capture

1 year

138.95%

97.15%

3 years

119.45%

100.89%

5 years

121.49%

84.85%

Life of Class

119.45%

100.89%

Overall Rating: out of 122 funds

Morningstar Category

Foreign Small/Mid Growth

Performance:

Institutional Class Index: MSCI ACWI ex US Small Cap

 

Up Capture

Down Capture

1 year

174.18%

118.58%

3 years

129.26%

82.46%

5 years

NA

NA

Life of Class

118.04%

69.75%

Performance data shown represents past performance and is no guarantee of, and not necessarily indicative of, future results. Total return and value will vary and you may have a gain or loss when shares are sold. Current performance may be lower or higher than quoted. Returns include changes in share price and reinvestment of dividends and capital gains, if any.

Overall rating derived from weighted average of the 3-, 5- and 10-year (if applicable) Morningstar Rating metrices; other ratings based on risk-adjusted returns as of June 30, 2019.

Up capture ratio is calculated by dividing the fund’s returns by the returns of the index during the up market, and multiplying that factor by 100. Down capture ratio is calculated by dividing the fund’s returns by the returns of the index during the down market and multiplying that factor by 100.



WCM funds are rated against the following numbers of US-domiciled Morningstar categories over the following time periods, as of 6/30/2019.

Fund Name Ticker Overall Rating 3-Year Rating 5-Year Rating 10-Year Rating
WCM Focused International Growth Fund WCMIX 5stars
out of 396
5stars
out of 396
5stars
out of 336
N/A
WCM Focused Emerging Markets Fund WCMEX 5stars
out of 712
4stars
out of 712
5stars
out of 560
N/A
WCM Focused Global Growth Fund WCMGX 5stars
out of 772
5stars
out of 772
5stars
out of 594
N/A
WCM International Small Cap Growth Fund WCMSX 5stars
out of 122
5stars
out of 122
N/A N/A

WCM Focused International Growth Fund

WCM Focused Emerging Markets Fund

WCM Focused Global Growth Fund

WCM International Small Cap Growth Fund



Distinct Growth Approach

Relying on proprietary research, WCM’s bottom-up investment approach seeks to identify companies with attractive fundamentals, such as low or no debt, rising returns on invested capital, and reasonably predictable free cash flow generation. The team focuses on assessing the trajectory of a company’s competitive advantage (“economic moat”) and the alignment of its corporate culture with this economic moat.

MOATS

Businesses with durable and growing competitive advantages.

CULTURE

Great people, empowered and engaged, define success.

TAILWINDS

Businesses benefiting from long-lasting global trends.

FOCUSED

Only best ideas; outperform with controlled risk.

VALUATION

Great growth companies at fair prices contribute to margin of safety.

WCM feels strongly about the correlation between corporate culture and investment returns and has a dedicated business culture analyst who works closely with business analysts and portfolio managers. Their culture analysis focuses on finding corporate cultures that foster behaviors beneficial to the company’s competitive edge, that display adaptability in the face of internal and external challenges, and that permeate the organization at all levels.

Overall, the firm’s highly selective equity investment process, with a minimum time horizon of 3-5 years, includes the criteria shown in the above graphic. Also, risk control is systematic and built into every aspect of the WCM process. This helps to ensure portfolios participate on a much lesser degree when markets decline.