The Australian Growth Fund rose +2.0% in June outperforming the benchmark index which rose +1.3%. The Australian inflation rate registered 4% in May, above the Reserve Bank of Australia’s (RBA) target, and above market expectations. This pushed out the investor expectations around the timing of when the RBA will begin cutting interest rates, which weighed on market sentiment and equity market performance in the month.

After a tough few months, software developer Atlassian’s share price rebounded +13% in the month, and was our best performing company. Having attended Atlassian’s investor day recently, we were impressed with the calibre of the team and the product development that they are in the process of delivering to their clients. The long term potential for Atlassian remains sound and we added to our position during the month.

Resmed (-7.5%) fell sharply during the month after a weight loss drug company released data from a trial highlighting the benefit of the weight loss drugs on people suffering from sleep apnea (a key customer base for Resmed). The data was positive for the drug company, and may reduce theneed for some customers to use Resmed’s sleep apnea devices. However, based on our research to date, the market for sleep apnea remains deeply underpenetrated and weight loss drugs will not be a complete panacea for everyone suffering from sleep disordered breathing. As such, we do not think this drug trial outcome significantly inhibits Resmed’s ability to continue growing its sales over coming years.