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New Zealand Growth Fund

PORTFOLIO HOLDINGS

New Zealand Growth Fund

Portfolio holdings summary as at 30 November 2018

a2 Milk Company

a2 sells 'a2'-branded fresh milk and infant milk formula internationally. The company has developed and patented a range of IP which tests whether cows produce A1-free milk. More importantly the science behind a2 the company has developed a leading, highly trusted brand in Australia and China in particular. Annual sales are now approaching $1 billion. We believe this company for their ability to recognise opportunity and having the strategic vision and operational smarts to take advantage of it.

Abano Healthcare

Abano operates a partnership and co-invest model, investing alongside a range of private specialist healthcare businesses in New Zealand, Australia and Asia with services spanning audiology, dental, diagnostics and rehabilitation through over 200 facilities.

Auckland International Airport

Auckland International Airport (AIA) owns and operates New Zealand's major gateway as well as 1500 hectares of land surrounding the airport and has minority investments in Queenstown Airport and North Queensland Airports (Cairns & Mackay). AIA operates under a 'dual till' regulatory regime, meaning that the company's aeronautical operations are subject to rate of return regulation, whereas the other non-aeronautical operations are not regulated. Over half of AIA's revenue is derived from non-aeronautical operations, such as retail, parking, hotel accommodation and property rental.

Delegat

Delegat's Group is a leading producer of super premium branded New Zealand wines for domestic and international markets. Established in 1947, it produces and markets the internationally-acclaimed Oyster Bay range of wines. It exports over 2.5 million cases of wine per annum mainly to the UK, Australia, USA and Canada.

Fisher & Paykel Healthcare

Fisher & Paykel Healthcare is a leading designer, manufacturer and marketer of a range of specialized products used in respiratory humidification and obstructive sleep apnea. It has manufacturing facilities in both New Zealand and Mexico and sells its products in more than 120 countries worldwide.

Fletcher Building Limited

Fletcher Building is a significant employer, manufacturer, home builder and partner on major construction and infrastructure projects. Despite recent challenges, Fletcher Building's key New Zealand operations; Golden Bay Cement, Winstone Wallboards and PlaceMakers, dominate their respective markets. We believe these core businesses have, clear moats and help the company to deliver solid cash flow.

Freightways

Freightways is a leading provider of express package services throughout New Zealand, with complementary business servicing the information management and business mail sectors. Since commencing operations in Auckland, Freightways has grown both organically and by acquisition to become a leading New Zealand service provider, with representation in every major town and city throughout the country.

Infratil Limited

Infratil is an owner and operator (through manager Morrison & Co.) of businesses in the infrastructure areas of energy (mainly renewable), airport and public transport sectors. Infratil is an active owner of infrastructure assets and often looks to partner with other players to leverage positions for its shareholders' benefit.

Mainfreight Limited

Mainfreight is a global supply chain logistics provider, specialising in the handling of freight that is less than container load, with businesses operating in over 240 branches throughout New Zealand, Australia, Europe, Asia, and the United States. It provides customers with a full range of logistics services that include managed warehousing, domestic transport, metro and wharf cartage and international air and sea freight forwarding operations all linked by technology with full supply chain transparency.

Meridian Energy Limited

Meridian is New Zealand's largest gentailer, producing approximately 30% of the country's electricity in an average year. MEL's generation is sourced 100% from renewable hydro and wind resources. MEL's retail business operates under the Meridian and Powershop brands.

Michael Hill International Ltd.

Michael Hill Jeweller owns and operates a full range retail jewellery chain catering principally for the middle section of the jewellery market. The Michael Hill chain has a substantial retail presence in both New Zealand and Australia, with growing operations in Canada and a presence the USA. It has recently launched a new brand Emma & Roe in Australia which retails a range of 'demi-fine' jewellery.

Port of Tauranga

Port of Tauranga is the dominant New Zealand port for bulk exports such as forestry and farming-related products, and its gaining share in imports especially in container freight. Its proximity to major customers and sound infrastructure are complemented by a highly-efficient labour force, making it the preferred port of call for an increasing range of shipping companies.

Restaurant Brands

Restaurant Brands is the main franchisee for major international fast-food brands in New Zealand including KFC, Pizza Hut, Starbucks and, more recently, Carl's Jr. In 2016 it expanded overseas into NSW, Australia by acquiring a sizeable network of KFC outlets. Recently, the company also acquired the franchises for Taco Bell and Pizza Hut in certain Pacific markets, primarily Hawaii.KFC remains the predominant brand for the group at around two-thirds of operating earnings.

Ryman Healthcare

Ryman Healthcare is New Zealand’s pre-eminent and largest developer and operator of retirement villages. It operates a continuum of care model at over 30 villages, where residents can change accommodation requirements based on their level of care needs. Ryman has recently commenced developments in Australia, where it intends to operate the same successful model it has deployed in New Zealand.

Summerset

Summerset is an integrated retirement village builder, owner and operator with a track record of developing and operating retirement villages and aged care facilities in New Zealand. It is now the second largest developer behind Ryman and has the third largest retirement village owner behind Ryman Healthcare and Metlifecare.

Vista Group International

Vista Group International is an innovative and profitable company providing sophisticated software to cinema exhibitors. It has around 40% worldwide market share with clients in over 70 countries. Its integrated software systems allows cinema exhibitors to run wide ranging functions such as ticketing, food and beverage sales and re-ordering, staff and film scheduling, loyalty schemes, digital signage as well as external customer interfaces like websites and mobile apps. It also has a fast growing analytics business.

Xero Limited

Xero is a market leading provider of cloudbased accounting software to small and medium businesses and their accountants in New Zealand, Australia and the U.K. They have growing presences in the U.S and other markets such as South East Asia. They are an innovative company and have achieved impressive subscriber growth to date and are on the cusp of breaking even. Although initially expensive to acquire, their customer base of 1.2 million small to medium businesses globally represents a significant competitive advantage.

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