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.
|12% Share Price Change||0.6% Contribution to Return|
|9% Share Price Change||0.5% Contribution to Return|
Credit Corp Group Limited
|-11% 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 +3.6% in April. This compares to a +3.15% return for the ASX 200 Index (70% hedged into NZ$).
Audinate, the developer of leading audio networking technology rebounded +15.1% as it released a positive trading update in the month. Audinate is experiencing a strong uplift in demand for its products from sound equipment customers as their supply chains begin improving after a COVID-impacted year.
Credit Corp’s share price fell -11.2% in the month despite re-confirming its profit guidance of 7-13% earnings growth for 2021. The volumes of debt ledgers being sold by Australian and US lenders seems to be lower than the market was expecting. This may act as a near term headwind for Credit Corp’s profit growth in 2022. We expect Credit Corp’s key divisions to return to normal, pre-COVID levels over the next couple of years.
Senior Portfolio Manager
Senior Investment Analyst
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