The New Zealand Growth Fund returned -2.7% in April, compared to its benchmark of -3.0%.

Wine producer Delegat (-11%) has been impacted by the US 'Liberation Day' tariffs, which proposed a 10% rate on products imported from New Zealand, with around half the company's sales being into the US market. Price increases are likely to recoup some of the cost, particularly as over 40% of the 1.8 billion bottles of wine consumed annually in the US are imported from Europe and facing even higher tariffs (20%). However, over April, the company has seen reduced orders in the current quarter as the industry (producers, distributors, and retailers) adjusts to the changes.

Mainfreight (-10%) has been caught in the crossfire of the greater-than-expected tariffs, given its exposure to the global freight market, particularly its international Air & Ocean freight forwarding operations (including between China and the US). The share price declined given the uncertainty around the size of a potential negative impact, although subsequently rebounded in early May after a company update cited the modest exposure to the China-US trade lane and limited reaction observed to date on other lanes.

The likely impact of new US tariffs on Fisher & Paykel Healthcare (+1%) continues to evolve as further clarity comes to light around the finer details. The company has confirmed a large majority of the products it manufactures in Mexico are compliant with the USMCA and as such are exempt from USA tariffs (the United States-Mexico-Canada Agreement is the prevailing free trade agreement between those countries with Trump authorising the current version in 2020). The 'Liberation Day' tariff update may see the company caught by the 10% tariff on some products imported into the US from New Zealand, although there is a carve-out for certain medical equipment that the company may be able to use, which could reduce the likely tariff to a minimal level.