In June the Australian Growth Fund returned +1.3%, ahead of the benchmark index which returned +1.0%. Helped by a strong rebound in Cochlear and CSL's share prices (see below), healthcare (+13%) was the best performing sector in the month. Energy (-9%) was the worst performing sector as oil and energy prices fell following continued abatement of the upheaval in Iran.

Cochlear (+21%) and CSL's (+19%) share prices rebounded strongly in June as investor sentiment towards healthcare improved more generally in the month. Neither company had meaningful news released during the month. We spent time in the US during the month meeting with companies, physicians, and competitors that operate in the same healthcare niches as Cochlear and CSL. Feedback from these meetings has left us feeling more positive on Cochlear's earnings prospects given that the company is taking steps to address the shortcomings of its recent new product launch, which should bolster cochlear implant sales once implemented. The research trip left us relatively cautious on CSL's nearer-term earnings prospects. Although CSL's core plasma therapy markets are improving, the rebound will likely take some time to eventuate.

Having risen over 50% in May, Atlassian's share price fell 25% in June and was our worst performing company in the portfolio. There was no meaningful news related to Atlassian specifically. Instead, its share price was buffeted by negative investor sentiment towards software companies globally during the month. Likewise, we note Wisetech (-8%), Xero (-4%) and Technology One's (-1%) share prices also fell during the month.