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Overview of the Fund |
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What we like about companies in our portfolio |
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Company case study: Commonwealth Bank |
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Keen to learn more about this Fund? |
The Australian market is deeper and broader than New Zealand's providing numerous opportunities to invest in great businesses, often in sectors that are not well represented here. The breadth of opportunity often means that companies are poorly researched and not well understood, which can result in high quality companies trading below their inherent value.
While Australia's fortunes have long been associated with its abundant natural resources, this synopsis is too simplistic. Australia's larger population and internal market also makes Australia an attractive global investment destination. The growth path for Australian companies is often smoother than that for New Zealand firms – there are as many potential customers living in Sydney as there are in New Zealand. This provides a broader growth opportunity for companies before they have to consider the challenging step of exporting their business model.
Our Australian portfolio combines a strong core of companies that meet our strict quality criteria and exposure to companies who we think can become the quality names of tomorrow. This combination delivers a strong, well diversified and liquid portfolio of companies.
Case Studies
Commonwealth Bank of Australia
What does it do?
Commonwealth Bank of Australia operates a leading banking franchise in both Australia and New Zealand and has a strong presence in all spheres of retail and business banking. CBA has built a very profitable portfolio of assets and positioned itself to benefit from key growth areas in the Australian economy. The bank also enjoys an enviable scale advantage in gathering deposits, allowing it an important source of stable and low-cost funding.
Why do we own it?
The big four Australian banks enjoy a supportive industry structure and wide economic moats. Their scale, regulatory expertise, technology and brands constitute significant barriers to entry for potential competitors, allowing the banks to earn healthy returns on their capital. CBA's significant share in core Australian lending and deposit gathering will ensure it continues to profit and grow over time.
Domino's Pizza
What does it do?
Domino's Pizza is the master franchisor of the Domino's brand in Australia, New Zealand, France, Belgium, the Netherlands, Monaco and Japan. The company has revolutionised the pizza restaurant industry in its key markets by focusing on meeting consumer taste, convenience and value needs.
Why do we own it?
Domino's is a clear Australian growth stock with store expansion, productivity and margin improvement opportunities. The business has significant scale, technology expertise and a powerful brand, all of which combine to create a formidable barrier to entry for potential competitors. With meaningful contributions from businesses around the world, Domino's offers quality diversification from the Australian economy.
