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. » |
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| 20% Share Price Change | 0.7% Contribution to Return |
Ooh! Media » |
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| 12% Share Price Change | 0.5% Contribution to Return |
Seek Limited » |
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| -3% Share Price Change | -0.3% Contribution to Return |
| Seek Limited | 7.0% |
| CSL Limited | 6.9% |
| Carsales.Com Limited | 6.8% |
| Cash | 9.4% |
| Top 10 holdings | 56.7% |
The Australian portfolio was up 1.8% for the month, ahead of the Australian market. Wisetech rose +20% in A$ following a successful capital raising in which it raised $300m in fresh equity. This provides it with additional balance sheet flexibility to keep investing heavily in growing its earnings through organic and acquisitive investments. Wisetech re-affirmed full year guidance during the month as well. The latest Outdoor Media Association data reinforced the positive structural trends of outdoor advertising growth, benefiting Ooh! Media which was up +11.9% in the month.
The banks lagged in the month, with CBA (-4.5%), WBC (-3.9%) in particular giving up a meaningful portion of their ‘Royal Commission’ relief rally in February. Operating conditions are showing few signs of improving with soft house price and credit lending data, and the prospect of higher capital requirements in their NZ subsidiaries all continuing to weigh on performance.
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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