In October the Australian Growth Fund fell -1.8%, lagging the benchmark index which rose 0.4%.  The Materials (+4.3%) and Energy Sectors (+3.7%) led the market higher in the month. The Information technology (-8.4%) and Consumer Discretionary (-6.9%) sectors were the worst performing sectors in the month. 

Insurance Broker, AUB Group (+13%) was one of our best performing companies in the month. Late in the month the company confirmed that it had received a non-binding takeover offer from a respected private equity operator, EQT, in Australia. AUB's board has consequently entered discussions with the private equity firm and provided them with exclusive due diligence for a six-week period (from the 8th October). At the end of this period, EQT may or may not make a binding takeover offer for the company. We are monitoring developments closely. 

 Wisetech (-23%) and CSL (-10%) dragged down our portfolio performance for the month. Wisetech's share price dropped after the corporate regulator, ASIC, increased scrutiny of personal share trading of founder Richard White and three employees. This likely entails trading during the governance turmoil early in 2025. We note that this is specific to these employees in their personal capacity. The core investment case for Wisetech rests on the quality of its software and the value it provides its customers. This is not changed by the ASIC investigation.  

That said, we have engaged with the Board and are monitoring this closely. Wisetech have their Annual General Meeting in November. We are also attending an investor day in Sydney in December which should provide more comprehensive updates from the company. 

A decline in influenza vaccination rates in the U.S., combined with government cost-containment measures in China reducing demand for Albumin, saw CSL (-10%) downgrade its guidance for FY26. It downgraded revenue growth from +4 – 5% and NPATA growth +7– 10%, to revenue growth of +2 – 3% and NPATA growth +4 – 7%. Uncertainty around U.S. vaccination rates also led the company to reduce FY27 and FY28 NPATA growth expectations from double-digit to high-single-digit growth.