Performance as at 30 June 2021
Performance is after the annual fund charge, and before tax and membership fees (if applicable). For more information, see legal information and disclaimers.
What happened this quarter (3 months to 30 June 2021)
- After a challenging start to the year, New Zealand shares proved more resilient in the second quarter, although they were unable to keep pace with international counterparts. The NZX 50 Index rose 0.7%. Ultimately, its progress was held back by the weaker performance of interest-rate-sensitive companies (which feature heavily in the local market) as investors continue to come around to the view that the Reserve Bank of New Zealand may be one of the first central banks to raise interest rates.
- Australian shares fared much better, with the ASX 200 Index up 7.7%. Its market has benefited from strength in cyclical companies, which are better prepared for the rebound in global growth. Overall, the fund’s exposure to Australian companies was beneficial to performance.
- At a company level, one of the best performers was the fund’s overweight to Resmed, a provider of medical devices for the treatment of sleep apnea and other respiratory conditions. Its share price jumped over 30% as one of its competitors announced a major product recall for a number of competing ventilator devices.
- Overweight positions in Pacific Edge and Mainfreight were also beneficial. Pacific Edge, a cancer diagnostics company, saw its share price climb by over 20%, following news that its Cxbladder cancer diagnostics tests are now being covered by United Healthcare, the largest private healthcare insurer in the US. Meanwhile, Mainfreight saw its share price hit a record high, as the logistics company reported strong full-year earnings for the year ended 31 March 2021.
- Detracting from returns was the fund’s underweight to Arvida, an owner and operator of retirement village and aged care facilities. Its share price jumped by almost 30%, as it recorded a record profit of $131 million, on the back of a rise in the value of its properties.
- Other detractors were the fund’s overweight in Pushpay and an underweight in Kathmandu. Pushpay, a digital donor system for charities, saw its share price fall following a broker downgrade, which suggested it had failed to win market share during the COVID-19 pandemic. Meanwhile, Kathmandu shares continued their trend higher as the retail sector recovers, with many countries coming out of lockdown.
Need more information?
Read our Market Review for more information on investment markets.