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|
|-6% Share Price Change||-0.8% Contribution to Return|
|11% Share Price Change||0.8% Contribution to Return|
|a2 Milk Company Ltd.||14.1%|
|Fisher & Paykel Healthcare Corporation Limited||12.6%|
|Top 10 holdings||82.7%|
Senior Portfolio Manager
Senior Investment Analyst
The NZ Growth Fund had another solid month, returning 1.1% slightly ahead of the local share market that was up 1.0% (NZX50). Xero, Mainfreight and Vista were the key contributors.
Mainfreight delivered a very strong fiscal 2019 result, ahead of our expectations. Most of the uplift in profits came from its offshore businesses and the performance in the United States was particularly notable. The humble management team unusually commented they "will bask for a moment, savouring this result" which was somewhat a watershed moment for their global aspirations. We believe the recent confidence and upward inflection in the US and Europe reflect the Mainfreight strategy is gaining traction in these markets. We increased our investment in this company as it is executing well and the potential creation of shareholder value from growing in these markets is significant.
There were several highlights from Xero’s fiscal 2019 result. These included the number of subscriber additions in the key UK market and the supposedly mature New Zealand market which continued to grow well, in excess of 20%. Elsewhere, the rest of world subscribers and revenues beat expectations and growth is accelerating. We added to our investment in Xero.
Other changes to the portfolio for the month included increasing our investments in a2 Milk and Infratil and reducing our investment in Fletcher Building and Freightways.
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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