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.
|10% Share Price Change||0.9% Contribution to Return|
|7% Share Price Change||0.9% Contribution to Return|
|11% Share Price Change||0.6% Contribution to Return|
|Fisher & Paykel Healthcare Corporation Limited||13.2%|
|a2 Milk Company Ltd.||12.7%|
|Top 10 holdings||78.2%|
Senior Portfolio Manager
Senior Investment Analyst
The big news in New Zealand markets in March was the ten year Government bond rate falling sharply, to near lifetime lows. This supported the strong performance of yield stocks such as telcos and electricity companies which are not our favoured sectors given the lower growth profiles. It was not surprising the N ZGrowth Fund was modestly behind the NZ market, albeit with a healthy return of 4.9% (the NZX50 was +5.9%)
In portfolio news Synlait, processing partner of The a2 Milk Company released its first half 2019 result. This was meaningful as its maintenance of full-year guidance highlights a strong second half run-rate which reconciles with a2's sales growth expectations. We continue to believe a2 still has strong growth prospects and have added to the position following the share price weakness in March the wake of its strong first half result in February.
We made a significant change by exiting our position in Michael Hill. The investment case has shifted and the longer term prospects for the business are increasingly challenged. Positively the recent recovery in share price from depressed levels provided an opportunity to exit at an attractive price.
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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