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.||6.2%|
|-11% Share Price Change||-0.7% Contribution to Return|
|-14% Share Price Change||-0.4% Contribution to Return|
|-10% 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.
In April the Australian Growth Fund fell by –1.4%, which lagged the -0.4% return for the benchmark index. The share price volatility experienced since the start of the year continued through April.
Brambles (+6.5%) rose following a trading update in which it recorded +8% constant currency revenue growth over the first 9 months of FY22. The majority of this increase came from price increases and inflation related surcharges, demonstrating its strong pricing power. Brambles increased its full year earnings guidance, and also gave investors additional comfort that it won’t supply US supermarket operator, Costco, with plastic pallets unless the returns it generates from this endeavour are favourable.
Resmed (-10.0%) fell after it downgraded earnings guidance due to ongoing shortages in microchip supply. With these shortages persisting in the near term, it is unable to meet the strong demand from its clients for its sleep apnoea devices. While this is a temporary issue, it has meant that revenue for the year will be lower than Resmed had originally anticipated.
Senior Portfolio Manager
Senior Investment Analyst
Is there anything we
can help you with?