The Fisher Funds New Zealand Growth Fund is our flagship fund and was launched in August 1998. The fund aims to produce attractive long term returns by investing in quality companies chosen by our Investment Team. Typically the fund will be invested in 15 to 20 companies in at any one time. Often a company in the fund will have been chosen because it offers a unique product or service, has a dominant market position or brand, or operates in a fast growing sector.
|13% Share Price Change||1.3% Contribution to Return|
|-3% Share Price Change||-0.4% Contribution to Return|
|4% Share Price Change||0.3% Contribution to Return|
|Fisher & Paykel Healthcare Corporation Limited||12.0%|
|a2 Milk Company Ltd.||10.5%|
|Top 10 holdings||74.5%|
Senior Portfolio Manager
Senior Investment Analyst
The New Zealand Growth was up 2.2% for the month. Portfolio company a2 Milk was a standout (+13.5%), on the back of several supportive proof points and various investment firms touting the company’s potential to succeed in 2019. Both sales data for some of the key Chinese e-commerce platforms and Australian supermarket data had a strong finish to 2018, plus New Zealand export data also indicated strong volume growth. These data points reconciled with our positive view from late 2018, when we saw regulatory concerns subside and in-market pricing improving, which when combined with our overall positive view of the company gave us confidence to increase our holding at lower prices.
Michael Hill (-7.7%) reported its key December quarter sales, which were disappointing in absolute terms, reflective of broader retail market conditions, although showing a marked improvement since new CEO Daniel Bracken has started. The company has backed away from its unsuccessful shift to cutting promotional activity, which saw same store sales fall -11% in the previous quarter. Same store sales rebounded to +1.3% in November/December. Daniel’s initial focus is on retail operating fundamentals and we are of the view his influence will have a positive impact here.
We reduced our position in Auckland Airport during the month. The stock has performed strongly recently and given this, together with the signs airlines are reducing capacity we reduced the holding.
In the portfolio holdings below you will find a range of well loved New Zealand companies from logistics providers like Mainfreight through to dairy pioneer The a2 Milk Company.
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