The New Zealand Growth Fund returned -2.4% in September, compared to its benchmark return of -0.4%.  

The key news flow during the month was a positive investor day from infrastructure investor Infratil (-2%), which provided updates on its three largest holdings: CDC Data Centres, local telecommunications provider One NZ, and US renewables developer Longroad. CDC increased its current year's expected core operating earnings from a prior range of A$680-720 million to A$710-750 million, in part driven by a previously unannounced 70 megawatts worth of new contracts which will begin to contribute from late in the period. Longroad is now planning to develop 2.5 gigawatts of projects annually (up from 2.0 gigawatts previously) which is expected to take its core operating profit in 2029 to a run-rate of US$1.2 billion.  

Fund performance was most impacted by share price moves in Xero (-31%) and Summerset (-12%). Xero's fall reflects ongoing volatility in sentiment towards software companies, with accounting software rivals Intuit and Sage along with other Australasian technology companies also down double-digits. Summerset's fall reflects the macroeconomic headwind to house prices from higher global interest rates, plus uncertainty created from the discussion around different policy settings by political parties ahead of the general election, which may impact the sector.