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.
|Fisher & Paykel Healthcare Corporation Limited||17.0%|
|a2 Milk Company Ltd.||16.0%|
Vista Group International Ltd
|-63% Share Price Change||-3.5% Contribution to Return|
Fisher & Paykel Healthcare Corporation Limited
|18% Share Price Change||3.4% Contribution to Return|
|-24% Share Price Change||-2.2% Contribution to Return|
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.
The NZ Growth Fund posted returns of -12.6% in March, outperforming the local share market which returned -13.0% (S&P/NZX50G).
There have been clear winners and losers in the portfolio over the month with some companies experiencing better prospects as a result of the coronavirus crisis and others in the eye of a storm.
Fisher & Paykel Healthcare (FPH), as a leading global provider of respiratory equipment, is important in helping combat COVID-19. Demand for its products is strong. Accordingly it’s share price bucked the negative trend rising 17.8% for the month. It is positive, both for shareholders and patients, that FPH had flex capacity on hand so it could ramp production to meet increased demand. The company has been able to boost output in its hospital division by 30% with just two weeks lead time . We are proud to have Fisher & Paykel Healthcare as the biggest position in our portfolio.
Cinema software provider Vista (-63.3%) is right in the eye of the COVID-19 storm. And given almost every cinema globally is shut and they are all Vista’s customers and most are not paying Vista, this is very painful. We have spoken to Vista's management and board a number of times and also had calls with multiple global cinema chains. We have modelled the monthly liquidity position to ensure the company can survive if the current situation is drawn out and are comfortable management and the board are making the right decisions to guide the company through tough times. The long-term story and moat around Vista’s core cinema business is intact.
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