Well done to our clients who held the course with their investments over the last year. This patience in the face of a pandemic has certainly been rewarded.

2020 has been one of the more eventful years in financial markets in my career. It also brought the first major market correction since I joined Fisher Funds and provided a real test for our investment team. The COVID-19 pandemic has been described by the World Health Organisation as “The defining health issue of our time”. It is impossible to escape news of the dramatic social and economic impacts this event has triggered, including a drastic collapse in markets earlier in the year. While this has been an undesirable situation, I am proud of the outcomes our active investment management process has delivered for clients.

The real test of an investment manager is not how well they do when markets are strong, but how they look after investors’ capital in difficult markets. In this respect the Fisher Funds investment team has really shone over the last twelve months. Not only protecting our clients’ capital, but managing to deliver material gains, even in markets that were flat or declined.

As the chart below shows our three flagship Managed Funds invested in shares (New Zealand, Australia and International) all posted strong gains and materially outperformed their relevant markets over the last year up to 30 June 2020.

2020 has also provided a real test of investor nerves – clients and ourselves included! We were pleased that most of our clients held the course, and stayed with their chosen investment strategy when the chips were down in March. In the midst of high levels of uncertainty and when fear was widespread we aimed to provide reassurance to all our clients who got hold of us, and by providing additional communications and webinars.

The coast still isn’t completely clear, with the impacts of COVID-19 still working their way through the global economy. But more than ever, in a world of low growth and interest rates, we believe our approach to active investment management holds our clients in good stead for the years ahead.

 Notes: Fund performance is after fees and before tax for, the International Growth Fund, Australian Growth Funds, New Zealand Growth Fund, and they are compared to their respective market benchmarks. Past performance is not necessarily indicative of future returns