The New Zealand Growth Fund was up +3.8% in November compared to its benchmark, the S&P/NZX 50 gross index, which was up +3.4%.

Xero (+16%) delivered a first half result that was hard to fault, with revenue up +25% on the prior year driven by a broadly equal mix of subscriber growth and growth in revenue per user. The power of the business model shone through, with strong growth in earnings strongly ahead of expectations as cost growth was moderate, with operating expenses only 71.2% of revenue versus full year guidance of around 73%. Xero continues to deliver on its "Rule of 40" ambition, with free cash flow margin (21%) supplementing revenue growth. Across the board, Xero is delivering well on the clear strategy it outlined at its investor day in February, with the management team building a track record of delivering on its promises.

Fisher & Paykel Healthcare (+6%) reported a strong first half result, which demonstrated strong sales performance across all key parts of the business, totalling +17% in constant currency terms, which is above its aspiration of +12% (sustainably doubling revenue every 5-6 years). The company also made progress in improving its gross margins back towards its long term 65% target. When combined with controlled operating expenses growth of +11%, this saw its net profit grow a strong +43%. In the Hospital division, F&P's "new applications" consumables grew +24% and the company noted it is seeing pleasing rates of change in clinical practice. This takes time but is the ultimate driver of increasing uptake of its products. It called out continued strong growth in its anesthesia offering off a low base, and is seeing its experience in North America mirror strong growth in Australia where the products have been available for longer. Obstructive sleep apnea masks have been a standout for the last couple of years given the successful release of new masks, but continued to grow well at +14%. The immediate outlook continues to be positive after the launch of 3 new masks within the last 12 months and the recent debut of several masks in the important US market.