In July the NZ Growth Fund returned +4.0%, ahead of the local market at +2.5% (S&P/NZX50G).

Summerset (+22%) provided its 2Q20 update including 1H20 guidance of $40-45m NPAT. This was better than many had feared given the effects of Alert Level 4 mid-period. New sales of independent living units, a key barometer for the company, have recovered strongly and are currently growing at 20-40% vs the same time last year. This reflects the great job Summerset did to keep residents safe from COVID which has generated positive word of mouth.

Mainfreight (+20%) provided an update at its Annual Shareholders' Meeting, including a trading update for the first 17 weeks of the 2021 financial year beginning 1 April.  An outstanding performance despite the impacts of COVID.  Constant currency revenue is up +5% on the prior year and profit before tax an impressive +20%. This compares to -0.3% and -58% respectively for the first 7 weeks per the company's last update. Mainfreight's sales teams went into overdrive targeting market share opportunities, including from lesser competitors who delivered poor service or could not execute well against the COVID backdrop.

Pushpay (-10%) lagged during the month as major shareholder Peter Hujlich sold a quarter of his holding and recent director appointment Justine Smyth unexpectedly resigned later in the month. CFO Shane Sampson also sold some shares late in the month. We expected Hujlich may reduce his stake so this was not unexpected. Disappointingly we could not get a direct reason why Smyth resigned but think it may be as she could not have as much influence on the board on issues important to her.