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.
|-31% Share Price Change||-1.6% Contribution to Return|
|16% Share Price Change||0.8% Contribution to Return|
|7% Share Price Change||0.7% Contribution to Return|
|Top 10 holdings||52.5%|
Senior Portfolio Manager
Senior Investment Analyst
The Australian Growth Fund returned +1.5% in August, ahead of the ASX200 Index.
Strong performers for the month included Nanosonics (+21% in A$), Credit Corp (+16%) and Wisetech (+15.6%). Nanosonics and Wisetech’s financial results both included strong revenue growth. Nanosonics continues to broaden the distribution of its ultrasound probe disinfection products across hospitals in the US, Europe and in Australia. It is also making progress in entering the Japanese market.
Wisetech similarly continues to broaden the reach of its logistics software across existing and new clients. Credit Corp strengthened its market position in acquiring a competitor in the NZ and Australian market in August, and also upgraded earnings guidance for 2020. Outdoor advertising company oOH! Media (-30.5%) fell sharply after downgrading 2019 earnings guidance due to soft advertising markets in July and August. This is a cyclical issue that should pass in time. oOH! Media is already seeing early signs of an improvement in bookings for September as well as across the December quarter.
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.
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