The Australian Growth Fund rose +2.6% in September, compared to the benchmark index which rose +3.2% over the month. Equities were buoyed in September by the 0.5% interest rate cut by the Federal Reserve Bank in the US. This interest rate cut is the first of this economic cycle and is seen to bring relief to consumers and businesses alike. Materials (+11% in the month) was the best performing sector on the ASX, with miners and commodities rising strongly after Chinese authorities announced monetary and fiscal policy stimulus measures.

Domino’s (+18%) was our strongest performing business in the month. There was no material company specific news in the month, albeit Domino’s was dropped from the ASX100 index and added to the ASX Small Ordinaries index. This index transition may have influenced positioning by funds with index relevant mandates.

Wisetech (+15%) also had a strong month, helped by the announced acquisition of DB Schencker (the world’s 4th largest freight forwarder by revenue) by DSV (the world’s 3rd largest freight forwarder). Combined, the two companies will be the largest freight forwarder in the world. DSV is a key Wisetech customer, but DB Schenker isn’t. The acquisition is likely to see Wisetech’s software included in DB Schencker’s operations which will provide a boost to Wisetech’s revenue in due course.

Real Estate classified advertising business, REA Group (-8%), fell after making a series of takeover offers for UK listed property portal, Rightmove. After unsuccessfully trying to engage with Rightmove’s Board of Directors to complete the acquisition on friendly terms, REA abandoned its takeover efforts on 30 September.