After a strong August, the Australian Growth Fund fell -4.8% in September, compared to the benchmark index which fell -2.0%.  September was a volatile month for equities, driven largely by macro thematics such as rising bond yields and decisions by the RBA and the US Federal Reserve Bank to lift cash rates to combat inflation. Disruption in the East continued to roil global energy markets which also weighed on investor sentiment.   

In our portfolio, MAAS Group (+34% in A$) was the standout performer, benefitting from news flow around AI Neocloud Firmus, which released forecasts ahead of its planned ASX listing in October. MAAS's exposure to Firmus is twofold. It is building the electrical and power infrastructure for Firmus' AI data centres. It expects to generate around $855m of revenue over the next 18 months from this (roughly half of group revenue in that period). Firmus is in the process of securing additional funding from private investors to fund this infrastructure buildout further. 

NEXTDC (-22%) and SEEK (-18%) both fell sharply in the month.  Regarding SEEK, persistent inflation prompted the RBA to raise its cash rate to 4.6%, with a distinct chance of further increases. Higher rates make businesses more cautious about hiring, and the RBA's forecasts imply unemployment rising from 4.6% towards 4.8–5.0%. Fewer new job ads weigh directly on SEEK's volumes. We view these headwinds as cyclical. SEEK is executing well in a tough macro environment. It is growing market share, while earnings are supported by price rises and disciplined cost control.   

NEXTDC in contrast was weighed down by concern that the Senate inquiry into the impact of AI and data centres on Australian communities could lead to future datacentre approvals being rejected. While this could affect future contract wins, the 740MW of contracted capacity NEXTDC has secured relates to sites that are already approved. At its August result, NEXTDC reported it added 495MW of contracted capacity in the year to 30 June 2026, roughly tripling its total contract book in the year. This is expected to convert to billed MW between FY27 and FY30, supporting EBITDA growth of 50%+ p.a. over the period. Delivering this requires significant build-out and capital. During the month NEXTDC completed a $1.1b subordinated convertible note issue, taking its liquidity to more than $9.7b, which goes most of the way to funding the contracted pipeline.