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Contango Asset Management: WCM Quality Global Growth March 2022 NTA Statement and 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 March 2022.

The strategy1 returned -4.34% during the month. The Strategy has outperformed the benchmark MSCI All Country World Index over three, 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 approach used for the strategy WCM Quality Global Growth. it should be noted that due to certain factors, including but not limited to differences in cash flow, management and performance fees, expenses, performance calculation methods and size and composition of the portfolios, there may be discrepancies between the investment returns demonstrated by each of these portfolios and the WCM Quality Global Growth Strategy Composite (the Composite) in the future. Since WQG, WCMQ and WCM Quality Global Growth Fund (Managed Fund) have only been around for a relatively short time, this table references the composite to provide a better understanding of how the team has managed this strategy over a longer period. . period. Performance is net of fees and includes 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 reinvested dividends declared in Australian dollars and unhedged). 4. Value Added equals Composite Performance minus Benchmark Performance. 5. Annualized.

The strategy is readily available through four investment structures to suit the different preferences of individual investors. You can read the full investment update for each of these products at the links below:

Strategy update

In March, global equity markets were slightly higher in local currency terms, but not enough to prevent their worst quarterly performance since the start of the COVID-19 pandemic with the benchmark index down 8.25% in March. course of the quarter. The Russian invasion of Ukraine remained a major concern for investors, continuing to add to already heightened fears of rising inflation around the world. Brent oil prices soared in early March before ending the month at $103 a barrel, a 33% increase from the level at the start of the calendar year. The US Federal Reserve responded to these inflationary concerns by raising its discount rate by 0.25% in March. After raising interest rates for the first time in December 2021, the Bank of England raised them again twice in the first quarter and the European Central Bank signaled that it should also start tightening rates before the end of the month. end of the year. Energy, Utilities and Materials were the best performing sectors in March and were the only three to post positive returns for the quarter. While developed markets recovered somewhat during the month, emerging markets fell as the surge in Omicron cases weighed on the Chinese stock market. At the factor level, growth has underperformed, in line with recent periods. The Australian dollar appreciated in March, reducing the returns of unhedged global portfolios.

From a sector allocation perspective, the portfolio’s underweight exposure to Energy and Consumer Discretionary detracted from relative performance, as did Industrials (overweight). Communication Services (no weighting) was the largest positive contributor to relative performance, followed by the overweight Health Care. In terms of stock selection, Consumer Staples was the best performing sector relative to the benchmark. Conversely, Information Technology was the worst performer, followed by Consumer Discretionary.

The portfolio’s recent performance relative to the market has been disappointing, but not unexpected given the rotation in style towards more value-oriented sectors. In previous periods of underperformance and recovery, WCM’s playbook is the same as it is today, which is to stay disciplined and choose only the highest quality companies that have advantages. growing competition underpinned by well-aligned cultures. This disciplined approach not only to stock selection, but also to portfolio construction, helps achieve a good risk-reward balance and ultimately provides the best long-term returns for investors.

WARNING: Swiss Asset Management Limited (SAML)(ABN 26 123 611 978, AFSL 312247) is a wholly owned subsidiary of Contango Asset Management Limited (ABN 56 080 277 998), an ASX listed financial institution (CGA). CGA has prepared this document for general information purposes only for WCM Global Growth Limited, a listed investment company (ASX: WHQ).

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).

Contango International Management Pty Limited (CIML)(ABN 33 617 319 123) is the investment manager of WQG and is an authorized representative of SAML. WCM Investment Management, LLC (WCM) is the underlying manager and applies its WCM Quality Global Growth Equity strategy (the Strategy), with the exception of Australia, in the management of WQG, WCMQ and WCM Quality Global Growth Fund (Managed Fund) (the Funds). WCM does not hold AFSL. WQG and CIML are part of the Contango group.

Although the strategy, with the exception of 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, methods of calculating performance, portfolio sizes and composition may result in differences in the investment returns of 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) have performed in the past or will perform in the future.

The material should not be considered a solicitation or offer of advice or services by WCM, CGA or SAML. It does not contain investment recommendations or provide investment advice. It does not take into account the goals, financial situation or needs of any particular individual. Investors should, before acting on such material, consider the suitability of the material.

Neither SAML, CGA, their related corporations, entities, directors or officers guarantee the performance, timing or amount of return of capital or income invested in the Funds or that the Funds will achieve their investment objectives. Past performance is not indicative of future performance.

Economic or market forecasts are not guaranteed. Any reference to particular securities or sectors is for illustrative purposes only and applies as of the date of publication of this document. This is not a recommendation of any named securities or sectors and no guarantee is given that the positions will remain in the fund’s portfolio. All securities identified and described are for illustrative purposes only and do not represent all securities purchased, sold or recommended for client accounts. The reader should not assume that an investment in the securities identified has been or will be profitable.

Investors should seek professional investment, financial or other advice to assist the investor in determining individual risk tolerance and needs to achieve a particular return on investment. Investors should in no way rely on the information contained in this document.

Investors should read product disclosure statements (PDS) of the Funds or any relevant offering document in its entirety before making a decision to invest in such products.


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