Aussie ETF launch portfolio includes Shopify
Aussie-based Contango Asset Management and Californian-based WCM Investment Management have jointly launched an ETMF (an exchange traded managed fund) the WCM Quality Global Growth Fund for Australian investors which gives them exposure to stocks such as Shopify, the e-commerce platform which powered the launch of Kylie Jenner’s makeup line.
Shopify is in the top 10 holdings of WCM Quality Global Growth Fund. The fund, launched by local Contango Asset Management and managed by Californian-based WCM Investment Management (WCM), has already received over AUD10 million in allocations in its first 10 days of being open to local retail investors.
Marty Switzer, CEO of Contango Asset Management, says: “The Canadian-based Shopify helps small businesses set up and manage their online stores.
“The reason that WCM likes them is because of their corporate culture. WCM’s investment process is based on the premise that corporate culture is the biggest influence on a company's ability to grow its competitive advantage.”
Switzer notes: “Recent revelations of misconduct from the royal commission highlight the need for investors to garner greater insights into the corporate culture of organisations.”
“Great companies tend to have great cultures. And that tends to be great for investors.
“Factors relating to the quality of people and the relationships among them – the corporate culture – can be up to twice as important as the numbers.
“There are a range of investment opportunities offshore and Kylie Jenner’s favoured e-retailer Shopify is just one,” adds Switzer.
Paul Black, co-CEO and portfolio manager at WCM, adds: “Similar companies with identical business models can have vastly disparate performance. The difference in many cases is culture.
“For instance, any organisation can have the greatest products, a robust brand and reputation, effective policies and processes and a long history of trading - but if the culture is poor, it is much less likely to succeed when compared with a business that has a healthy culture.
“Despite those good products, you might find that many customers have complained about slow delivery, or poor service, or rude employees. These are all indicators of the health of a company's culture.
“In contrast, companies with great service and employees that go the extra mile rarely have complaints made against them. And if their customers are not making complaints, then customers will return to those better businesses, leading of course to better business results.”