The Australian Growth Fund gives you access to invest in quality, growing Australian businesses. The Australian market is deeper and broader than in New Zealand, which provides numerous opportunities to invest in great businesses. Being such a broad market with so many investment opportunities means some companies are often poorly researched and not well understood by the market. The outcome of this is that high quality companies can trade below their inherent value. Our team making investment decisions are well informed and spend their time conducting their own research on this market.
There is a lot of diversity in the products and services that companies in the Australian market offer. Because of the population size,the growth path for Australian companies can be smoother than in New Zealand. This is important as it provides these companies a broader growth opportunity domestically, before they need to consider the challenging step of exporting their business model to chase growth.
|Commonwealth Bank of Australia||6.9%|
oOh media Ltd
|-72% Share Price Change||-3.4% Contribution to Return|
|-26% Share Price Change||-2.0% Contribution to Return|
Credit Corp Group Limited
|-58% Share Price Change||-1.9% Contribution to Return|
In the portfolio holdings below you will find a diverse range of companies. Some of these will be brands you know well, and others may be new to you. The companies we invest in range from banks and fast food brands, to companies in the healthcare and tech sectors.
The Australian Growth Fund fell -18.5% in March. This compares to a -20.7% swoon for the ASX200 Index (70% hedged into NZ$). The spread of Coronavirus and the anticipated effects of global containment activities drove share markets lower in the month.
Next DC (+13%) was a standout performer in the month. It announced a large contract win in its Melbourne data centre. It is also benefiting from the crisis. As companies have sought to enable employees to work remotely their needs for data centre capacity to house computing infrastructure in the cloud has risen. Next DC can expect their phones to run hot with calls from customers for a while!
oOH!Media (-72%) fell sharply as the market questioned whether its balance sheet was strong enough for it to survive the economic downturn. The company addressed this and raised $167m in fresh equity by month end to reduce debt. This helps tide the company over during this period of economic hibernation.
Senior Portfolio Manager
Senior Investment Analyst
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