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.
|Wisetech Global Ltd.||7.8%|
|11% Share Price Change||0.8% Contribution to Return|
|-5% Share Price Change||-0.4% Contribution to Return|
|-9% Share Price Change||-0.4% 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 returned -0.7% in September. This compares to a -1.6% return for the ASX 200 Index (70% hedged into NZ$).
Wisetech’s (+11% in A$) share price kept rising following its outstanding financial result in August. In addition to growing core revenue +25% in the year, management have done a great job controlling the growth in costs. This resulted in pre-tax profits growing +63% over the year, substantially faster than revenues. With Wisetech expecting profitability to improve further in the next year, this was well received by the market.
Limeade (-21%) lost a key customer, an airline, during the month as this airline sought to restore the business to profitability. While disappointing, Limeade is in discussions with a broad list of potential customers. We expect to see it convert a number of these to fee paying customers in the next few months.
Senior Portfolio Manager
Senior Investment Analyst
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