DOCSLIB.ORG

Xero Takes the Cause Into the US Market

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Xero Takes the Cause Into the US Market ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••Retail ••• SHAReMARKeT INTellIGeNCe / FAMIlY MoNeY / INVeSTMeNT PRoPeRTY / M0NeY MARKeT / CURReNCIeS NZ $ (Includes GST) 4.95 ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• P O Box 20034, Bishopdale, Christchurch. www.headliner.co.nz for 24/7 Markets News 7 AUGUST 2014 VolUMe 35 No 22 Moa margins NZOG moves OceanaGold Abano sets improving onwards on track good pace page 2 page3 page 4 page 4 Renewed guidance by Kathmandu Xero takes the cause Kathmandu Holdings provided update on its sales perform- ance and forecast earnings for the year ended 31.7.14 (FY14), including a lowered expectation on net profit. into the US Market • Total sales of $392.9m were up $8.9m (2.3%) on the pre- vious year; By WARREN HEAD • Same store sales (for the 52 weeks) up 4.2% at constant Xero has now reached the stage in its exchange rates; development where it is spending more to • EBIT expected to be in the range of $62.5m to $65.5m, maintain momentum in the greatest market compared to $63.4m for the previous year; on the planet and I mean not China but • NPAT expected to be in the range of $39.5m to $42.5m, America. As the latest GDP data showed compared to $44.2m for the previous year. there is a lot more momentum in America On 24.6.14 Kathmandu advised that in the absence of a than you’d imagine. more normal winter pattern through July, earnings for the In Washington the august group of year would likely be between 10 and 15% down on the Federal Reserve regional governors that result in FY13. During July, temperatures were generally comprise the FOMC are starting to show colder in comparison to June across most of Australia and less of an obelisk face to the world in New Zealand, particularly in the second half of the month. debating rate-setting because some parts of Since 24.6.14 Kathmandu has recovered a significant portion of the shortfall in sales revenue it experienced in the early the States are doing much, much, better. part of winter. This is the home of software. They Kathmandu’s CEO Peter Halkett said KMD would deliver a invented accounting software not long after better full year result for FY14 than management were IBM and Burroughs gave them machines on anticipating a few weeks ago when warm winter weather which to run it. You don’t just turn up here had significantly reduced customer demand. “The improve- and go chase market share off us, thank you. ment in sales and earnings in July once colder winter Or do you? weather became established has resulted in a satisfactory Xero is a typical Kiwi start-up. Why RoD DuRy Puts mARket GRowth In ConteXt. outcome from our key winter sale event.” wouldn’t you let us into your offices and Continuedonpage7 home too of we have something better than the logical. XRO forecasts subscription revenue growth for unwieldy stuff you’re used to. A Kiwi should have FY15. In FY14 March year it grew 84% to $66.6m. Only invented Apple. when they are doing recurring revenue ~$100m would So how is Xero footing it in this massive market? be better for listing off. For a start they’re throwing lots of cash at building Today it has 334,000 customers, a third of the way a market there. Just as well the recent capital raising to the target of 1 million. was as successful as it was. And as at 30.6.14 XRO still In XRO’s annual meeting presentation, CEO Rod had cash balances of NZ$192.7m. Drury produced a fascinating chart showing how long Net operating and investing cash outflows for the it had taken rival products to reach $100m of revenue. current quarter were NZ$17.3m compared with It took XRO six years to reach $20m and expectation is NZ$11.8 million for the March 2014 quarter. Not to get that in year 8 it will reach $100m. hung up about this surge in cash-burn. Given the In terms of XRO’s market share, most is in small seasonal nature of the Xero business, year-on-year business at 284,000, Australian customer numbers just comparisons provide the clearest view of growth shading New Zealand. In North America the total is trends. 18,000 but in the ‘Partners’ space the US component is A lot of this is the cost of a bigger field force. The already more than half the size of the NZ partner base. increase in staff costs is in line with headcount growth. The elephant in the room is Intuit with its The 103% increase in payments for other operating QuickBooks package but details aired at the XRO costs is higher than growth in actual expenditure due AGM suggest that at certain points recently XRO has to cash flow timings. been able to match the average monthly new customer Overall the increase in receipts from customers growth of this huge competitor. Although, of course, in reflects the continuation of strong growth in revenue sheer size Intuit is hardly being impacted. Their while the increase in costs reflects the ongoing invest- success is inside the US market just as XRO’s is in the ment in building the business for the future. NZ market (94% vs. 6% of the business). I do not know why there is such media interest in a It is quite a raw bare-knuckled sort of industry and possible US listing. It is a distraction. The company XRO didn’t pull back from throwing a few jabs at its kAthmAnDu RelIshes the ColDeR weAtheR. says there’ll be one when the timing is right, when it’s Continuedonpage3 Earnings growth in FY15 for Mainfreight When shareholders met today, Mainfreight executive chairman Bruce first 36 years. In the five years since the global recession took hold, Plested underscored the need for the company’s directors to build our 2014 profit has increased by a remarkable 81% — or some years of experience by outlining the board’s practice of meeting $49m. management in multiple markets. “Profits in every country, and overall in Europe, have improved In a brief commentary on the state of markets, he also empha- on the previous year, and those improvements are continuing into sized that there remains considerable economic weakness in most the current year. We see great opportunities for this current year.” of the world. MFT’s trading update indicated an overall 10%+ YoY group “Few would deny that we are experiencing some climate change, EBITDA growth (in NZD) in 1Q FY15E compared with the 12% YoY evident so far in more extremes of weather in very recent years. growth recorded in 2H14A. “Encouragingly, EBITDA growth rate in 1Q “Our political leaders are struggling to deal with these very big FY15E exceeded 10% YoY in all regions,” noted First NZ Capital. problems. This may be a time when we as individuals have to play “Growth in 2H FY15E could slow as the company begins to cycle an important role — a role of maturity, tolerance and under- the stronger performance in 2H FY14A. Even so, our current trajec- standing towards our political leaders, and the people and nations tory is for 2H FY15E EBITDA growth remains at a comfortable high less well off. single-digit. Management expects all regions to outperform FY14A.” “Anger, war, violence, insularity, cause only anger, war, violence, FNZC says MFT is a freight logistics business with global ambi- insularity and retaliation. As individuals, and collectively, we have tion. “With a service footprint in major trade lanes and regions that important roles to play in dealing with these very challenging spans from Australasia to Asia, North America and EU, MFT is now times. positioned to become a more serious contender in the global mAInfReIGht eXeCutIve ChAIRmAn “As for Mainfreight, we have built a strong platform over our Continuedonpage6 BRuCe PlesteD. HoT INVeSTMeNT NeWS oN WWW.HeADlINeR.Co.NZ. PReMIUM MeMBeRSHIP FoR THe MAGAZINe + WeBSITe top tier Moa improving margins – seeks new capital Craft beer brewer moa Group has prepped the ground for the rights issue to raise new capital of up to $5.75m by making some tough calls. managing director Geoff Ross says moa has now turned the corner with better sales performance and brand positioning. “The growth achieved in the last nine months is evidence that there has been a true turnaround. Sales, distribu- tion, marketing and brewing are all driving growth and increased margins. “We are now a stronger business,” he says in the prospectus for an issue of 1 additional share for every 1 currently held at a price of 33cps. “Recent results demonstrate regained momentum and significant sales growth. We remain positive regarding the market and busi- ness opportunity.” The rights issue is being supported by the major shareholders, including those who have invested via the place- ment, with all places as well as Pioneer Capital, The Business Bakery and Allan Scott Wines & Estates committing to subscribe for shares via the rights issue, although they do not guarantee the shares. That means that, at the outset, formal commitments have been received for 68% of the rights issue. Since making significant changes to across grocery channels; doubling our beverage credentials, and specifically deeper taste profile, although not too the sales and distribution structure in market share since the “New Moa” for us, continues to grow. big, and will also require accessible October last year craft beers brewer started 1 October 2013.” Consumers can now buy Moa in key price points. Moa Group has had a substantial New Zealand is the priority market Woolworths stores and Moa also has a “Moa Original lager and our new increase in sales measured by the for Moa right now.
Load more

Recommended publications
  • Bringing the Future Faster
    6mm hinge Bringing the future faster. Annual Report 2019 WorldReginfo - 7329578e-d26a-4187-bd38-e4ce747199c1 Bringing the future faster Spark New Zealand Annual Report 2019 Bringing the future faster Contents Build customer intimacy We need to understand BRINGING THE FUTURE FASTER and anticipate the needs of New Zealanders, and Spark performance snapshot 4 technology enables us Chair and CEO review 6 to apply these insights Our purpose and strategy 10 to every interaction, Our performance 12 helping us serve our Our customers 14 customers better. Our products and technology 18 Read more pages 7 and 14. Our people 20 Our environmental impact 22 Our community involvement 24 Our Board 26 Our Leadership Squad 30 Our governance and risk management 32 Our suppliers 33 Leadership and Board remuneration 34 FINANCIAL STATEMENTS Financial statements 38 Notes to the financial statements 44 Independent auditor’s report 90 OTHER INFORMATION Corporate governance disclosures 95 Managing risk framework roles and 106 responsibilities Materiality assessment 107 Stakeholder engagement 108 Global Reporting Initiative (GRI) content 109 index Glossary 112 Contact details 113 This report is dated 21 August 2019 and is signed on behalf of the Board of Spark New Zealand Limited by Justine Smyth, Chair and Charles Sitch, Chair, Audit and Risk Management Committee. Justine Smyth Key Dates Annual Meeting 7 November 2019 Chair FY20 half-year results announcement 19 February 2020 FY20 year-end results announcement 26 August 2020 Charles Sitch Chair Audit and Risk Management Committee WorldReginfo - 7329578e-d26a-4187-bd38-e4ce747199c1 Create New Zealand’s premier sports streaming business Spark Sport is revolutionising how New Zealanders watch their favourite sports events.
    [Show full text]
  • The Climate Risk of New Zealand Equities
    The Climate Risk of New Zealand Equities Hamish Kennett Ivan Diaz-Rainey Pallab Biswas Introduction/Overview ØExamine the Climate Risk exposure of New Zealand Equities, specifically NZX50 companies ØMeasuring company Transition Risk through collating firm emission data ØCompany Survey and Emission Descriptives ØPredicting Emission Disclosure ØHypothetical Carbon Liabilities 2 Measuring Transition Risk ØTransition Risk through collating firm emissions ØAimed to collate emissions for all the constituents of the NZX50. ØUnique as our dataset consists of Scope 1, Scope 2, and Scope 3 emissions, ESG scores and Emission Intensities for each firm. ØCarbon Disclosure Project (CDP) reports, Thomson Reuters Asset4, Annual reports, Sustainability reports and Certified Emissions Measurement and Reduction Scheme (CEMAR) reports. Ø86% of the market capitilisation of the NZX50. 9 ØScope 1: Classified as direct GHG emissions from sources that are owned or controlled by the company. ØScope 2: Classified as indirect emissions occurring from the generation of purchased electricity. ØScope 3: Classified as other indirect GHG emissions occurring from the activities of the company, but not from sources owned or controlled by the company. (-./01 23-./014) Ø Emission Intensity = 6789 :1;1<=1 4 Company Survey Responses Did not Email No Response to Email Responded to Email Response Company Company Company Air New Zealand Ltd. The a2 Milk Company Ltd. Arvida Group Ltd. Do not report ANZ Group Ltd. EBOS Ltd. Heartland Group Holdings Ltd. Do not report Argosy Property Ltd. Goodman Property Ltd. Metro Performance Glass Ltd. Do not report Chorus Ltd. Infratil Ltd. Pushpay Holdings Ltd. Do not report Contact Energy Ltd. Investore Property Ltd.
    [Show full text]
  • May 2019 Market Update
    QUAYSTREET MONTHLY MARKET UPDATE - AS AT 31 MAY 2019 - INTERNATIONAL MARKETS Geopolitics fray markets Global equity markets broadly fell in May, giving back on the rise across the continent, while at the individual some of April’s stellar performance. The MSCI World country level, Italy has made it known it is about to Index (NZD) dropped 3.6% over the month, however a flout EU fiscal rules around its budget. Across the weakening Kiwi dollar helped soften the impact in NZD channel, there are now heightened prospects of a terms. Positive returns in Brazil and India bucked the no-deal Brexit, coupled with a leadership vacuum after trend, helping emerging markets indices to outperform Prime Minister Theresa May announced she will resign developed markets, something that has not happened in June. for a while. In stark contrast to European politics, India’s Prime The weakness in markets accelerated at month-end as Minister Narendra Modi won a strong mandate for the US President made an unexpected announcement his second five-year term. The question being asked stating he would impose tariffs on Mexico if it did not by investors is to what extent he re-engages with stop the flow of illegal immigrants crossing the border the significant reforms he was planning to undertake into the US. This added further uncertainty concerning in his first term, such as overhauling the labour global trade, just as investors were evaluating the re- and agricultural sectors, that did not materialise. escalation of the US-China trade war. Notwithstanding, with its economy still among the fastest growing in the world (GDP is running at 7%), Another contributor to the renewed anxiety in markets India is likely to remain a favourite in the emerging was the deteriorating political landscape in Europe.
    [Show full text]
  • FS IISNZSF 20200731 Class a Instintfi 450498
    31 July 2020 Russell Investments NZ Shares Fund Fund facts Rolling 1 year performance history Inception date Fund Benchmark 14 February 2013 40% Benchmark 30% S&P/NZX 50 Index (gross) 20% and including imputation credits 10% Currency 0% 2014 2015 2016 2017 2018 2019 2020 NZD Performance review Period ending 31/07/2020 1 3 1 3 5 Since month months year years years inception % % % %p.a. %p.a. %p.a. Gross fund performance 3.5 12.3 9.4 16.1 16.2 16.4 Benchmark return* 2.5 11.4 8.8 16.2 15.9 15.9 Excess return 1.0 0.8 0.5 -0.1 0.3 0.5 Past performance is not a reliable indicator of future performance. Performance data shown is gross of fees, charges or taxes and is not in any way an indicator of the net return to you as an investor. Performance is calculated on exit price. *From 1 July 2016 this is S&P/NZX 50 Index (gross and including imputation credits). Prior to 30 June 2016 this was the Russell New Zealand Domestic Index including imputation credits (previously known as the Russell NZ Tradable Gross Index). Prior to 1 December 2014 the benchmark was the NZX50 Index including imputation credits. Fund commentary The Russell Investments NZ Shares Fund outperformed the benchmark in July. Contributing to the Fund’s outperformance was strong stock selection within the healthcare sector; notably an ex-benchmark holding in Pacific Edge and an overweight to Summerset Group. Pacific Edge jumped 168% after the company received approval to provide services under US national health insurance schemes, while Summerset Group gained after management downgraded profit guidance by less than expected.
    [Show full text]
  • Market Overview Funds at a Glance
    As of 31 March 2021 Market overview Global markets were again dominated by the re-opening theme last month – there For more information on our Funds, was a strong pro-risk sentiment with equities generating positive returns and, please contact: within equities, the countries most advanced in their Covid vaccine rollout (e.g. the US and the UK) offered the better performance. The MSCI All Country World index David Boyle was up 3.3%. Head of Sales & Marketing The Australian market rose 2.4% in March and the NZ market rose 2.7%. Consumer Level 25, SAP Tower Discretionary, Utilities and Real Estate were the best performing sectors in 151 Queen Street, Auckland Australia, with Materials and IT lagging. In New Zealand, it was the smaller cap New Zealand tech stocks that did the best – Vista +29%, Serko +22% and Pushpay +22%. P 0800 646 833 Laggards in NZ were Synlait, My Food Bag and Oceania Group. Synlait withdrew its E [email protected] full year guidance citing significant uncertainty and volatility. Oceania raised new www.mintasset.co.nz equity to fund acquisitions. In a case of caveat emptor, My Food Bag debuted on the market and promptly under-performed – in part, because the IPO price was set earlier in February before the market sold off. Bond rates have been rising in the US, with spill over effects to other bond markets, in part due to expectations of an economic bounce following the early success so far of the Covid vaccines. In March, this was exacerbated by the US fiscal stimulus measures – a US$1.9 trillion pandemic relief plan followed by a US$2.4 trillion infrastructure proposal.
    [Show full text]
  • FS IISNZSF 20210430 Class a Instintfi 465922
    30 April 2021 Russell Investments NZ Shares Fund Fund facts Rolling 1 year performance history Inception date Fund Benchmark 14 February 2013 40% Benchmark 30% S&P/NZX 50 Index (gross) 20% and including imputation credits 10% Currency 0% 2014 2015 2016 2017 2018 2019 2020 2021 NZD Performance review Period ending 30/04/2021 1 3 1 3 5 Since month months year years years inception % % % %p.a. %p.a. %p.a. Gross fund performance 1.5 -1.3 23.7 16.3 14.7 16.2 Benchmark return* 1.4 -2.8 21.6 15.6 14.4 15.6 Excess return 0.2 1.6 2.1 0.7 0.3 0.5 *From 1 July 2016 this is S&P/NZX 50 Index (gross and including imputation credits). Prior to 30 June 2016 this was the Russell New Zealand Domestic Index including imputation credits (previously known as the Russell NZ Tradable Gross Index). Prior to 1 December 2014 the benchmark was the NZX50 Index including imputation credits. Performance is calculated on exit price. Fund commentary The Russell Investments New Zealand Shares Fund outperformed the benchmark in April. Contributing to the Fund’s outperformance was strong stock selection within the industrials space; notably an underweight to Auckland International Airport (AIA) and an overweight to Mainfreight. AIA fell amid concerns over the outlook for long-haul international travel, while Mainfreight – the market’s most expensive stock and our largest overweight position – hit fresh record highs during the month. Stock selection within the information technology sector was also positive in April.
    [Show full text]
  • STOXX Pacific 100 Last Updated: 01.08.2017
    STOXX Pacific 100 Last Updated: 01.08.2017 Rank Rank (PREVIOU ISIN Sedol RIC Int.Key Company Name Country Currency Component FF Mcap (BEUR) (FINAL) S) AU000000CBA7 6215035 CBA.AX 621503 Commonwealth Bank of Australia AU AUD Y 98.1 1 1 AU000000WBC1 6076146 WBC.AX 607614 Westpac Banking Corp. AU AUD Y 72.3 2 2 AU000000ANZ3 6065586 ANZ.AX 606558 Australia & New Zealand Bankin AU AUD Y 58.9 3 3 AU000000BHP4 6144690 BHP.AX 614469 BHP Billiton Ltd. AU AUD Y 56.2 4 5 AU000000NAB4 6624608 NAB.AX 662460 National Australia Bank Ltd. AU AUD Y 54.3 5 4 AU000000CSL8 6185495 CSL.AX 618549 CSL Ltd. AU AUD Y 38.8 6 6 AU000000TLS2 6087289 TLS.AX 608545 Telstra Corp. Ltd. AU AUD Y 33.0 7 7 AU000000WES1 6948836 WES.AX 694883 Wesfarmers Ltd. AU AUD Y 31.3 8 8 AU000000WOW2 6981239 WOW.AX 698123 Woolworths Ltd. AU AUD Y 23.4 9 9 AU000000RIO1 6220103 RIO.AX 622010 Rio Tinto Ltd. AU AUD Y 18.9 10 11 AU000000MQG1 B28YTC2 MQG.AX 655135 Macquarie Group Ltd. AU AUD Y 18.6 11 10 AU000000TCL6 6200882 TCL.AX 689933 Transurban Group AU AUD Y 15.9 12 12 AU000000SCG8 BLZH0Z7 SCG.AX AU01Z4 SCENTRE GROUP AU AUD Y 14.9 13 14 AU000000WPL2 6979728 WPL.AX 697972 Woodside Petroleum Ltd. AU AUD Y 14.4 14 13 AU000000SUN6 6585084 SUN.AX 658508 SUNCORP GROUP LTD. AU AUD Y 12.5 15 15 AU000000AMC4 6066608 AMC.AX 606660 Amcor Ltd. AU AUD Y 12.0 16 16 AU000000QBE9 6715740 QBE.AX 671574 QBE Insurance Group Ltd.
    [Show full text]
  • Australia & New Zealand Report 2018
    DISCLOSURE INSIGHT ACTION Australia & New Zealand Report 2018 On behalf of over 650 investors with US$87 trillion in assets. CDP Report 2018 | Published February 2019 Contents 3 CEO foreword 14 Appendix I List of disclosing companies in Australia & 4 Disclosure in 2018 New Zealand 5 Climate Change: Australia & New 18 Appendix II Zealand insights Responding companies in Australia & New Zealand – supply chain program 9 Water Security: Driving water stewardship 19 Appendix III Non-responding companies in Australia & 10 Forests: Building sustainable New Zealand supply chains 12 CDP Australia & New Zealand Awards 2018 13 Investor Signatories & Members in Australia & New Zealand Important Notice The contents of this report may be used by anyone providing acknowledgement is given to CDP. This does not represent a license to repackage or resell any of the data reported to CDP or the contributing authors and presented in this report. If you intend to repackage or resell any of the contents of this report, you need to obtain express permission from CDP before doing so. CDP has prepared the data and analysis in this report based on responses to the CDP 2018 information request. No representation or warranty (express or implied) is given by CDP as to the accuracy or completeness of the information and opinions contained in this report. You should not act upon the information contained in this publication without obtaining specific professional advice. To the extent permitted by law, CDP does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this report or for any decision based on it.
    [Show full text]
  • Geneva, May 14, 2014 MSCI GLOBAL SMALL CAP INDEXES The
    Geneva, May 14, 2014 MSCI GLOBAL SMALL CAP INDEXES The following are changes in constituents for the MSCI Global Small Cap Indexes which will take place as of the close of May 30, 2014. SUMMARY PER COUNTRY and PER REGION: Nb of Nb of Securities Securities Region Country Added Deleted Asia Pacific AUSTRALIA 16 13 JAPAN 36 49 HONG KONG 6 6 SINGAPORE 3 8 NEW ZEALAND 2 2 MALAYSIA 10 12 INDONESIA 4 9 PHILIPPINES 0 3 TAIWAN 32 29 KOREA 16 26 THAILAND 4 6 INDIA 13 13 CHINA 45 25 Nb of Nb of Securities Securities Region Country Added Deleted Europe, Middle East and Africa GREECE 2 0 SWITZERLAND 4 1 DENMARK 2 2 SPAIN 3 0 FRANCE 8 3 GERMANY 6 1 NETHERLANDS 0 1 ITALY 3 0 NORWAY 10 0 AUSTRIA 2 0 SWEDEN 4 0 UNITED KINGDOM 18 7 FINLAND 0 1 TURKEY 1 10 PORTUGAL 4 0 IRELAND 1 0 ISRAEL 0 3 SOUTH AFRICA 4 4 POLAND 1 1 UNITED ARAB EMIRATES10 0 RUSSIA 2 5 EGYPT 1 0 QATAR 11 0 Nb of Nb of Securities Securities Region Country Added Deleted Americas USA 97 53 CANADA 19 6 MEXICO 7 0 CHILE 2 3 BRAZIL 8 8 PERU 0 2 ASIA PACIFIC Page 1 MSCI Global Small Cap Indexes - May 14, 2014 © MSCI 2014, All rights reserved MSCI AUSTRALIA INDEX Additions Deletions BILLABONG INTERNATIONAL AUSTIN ENGINEERING CEDAR WOODS PROPERTIES GRANGE RESOURCES COVER-MORE GROUP LTD KINGSGATE CONSOLIDATED DICK SMITH HOLDINGS LTD MAVERICK DRILLING & EXP ECHO ENTERTAINMENT GROUP MINERAL DEPOSITS ERM POWER OM HOLDINGS GDI PROPERTY GROUP PERSEUS MINING GREENCROSS RED FORK ENERGY IPROPERTY GROUP SILVER LAKE RESOURCES NINE ENTERTAINMENT ST BARBARA OZFOREX GROUP LTD STARPHARMA HOLDINGS PACT GROUP HOLDINGS
    [Show full text]
  • Russell Investments NZ Shares Fund
    31 December 2020 Russell Investments NZ Shares Fund Fund facts Rolling 1 year performance history Inception date Fund Benchmark 14 February 2013 40% Benchmark 30% S&P/NZX 50 Index (gross) 20% and including imputation credits 10% Currency 0% 2014 2015 2016 2017 2018 2019 2020 NZD Performance review Period ending 31/12/2020 1 3 1 3 5 Since month months year years years inception % % % %p.a. %p.a. %p.a. Gross fund performance 2.7 12.1 16.3 17.1 16.8 17.1 Benchmark return* 2.6 11.5 14.6 17.0 16.8 16.7 Excess return 0.2 0.6 1.7 0.1 -0.1 0.4 *From 1 July 2016 this is S&P/NZX 50 Index (gross and including imputation credits). Prior to 30 June 2016 this was the Russell New Zealand Domestic Index including imputation credits (previously known as the Russell NZ Tradable Gross Index). Prior to 1 December 2014 the benchmark was the NZX50 Index including imputation credits. Performance is calculated on exit price. Fund commentary The Russell Investments NZ Shares Fund outperformed the benchmark in the December quarter. Much of the Fund’s outperformance was driven by strong stock selection within the healthcare sector; namely overweight holdings in Pacific Edge, Summerset Group and EBOS Group. All three stocks posted strong, double-digit gains for the quarter and remain amongst our largest overweight holdings. Stock selection within the industrials space was also positive, including an overweight to Mainfreight. Mainfreight hit a series of record highs amid an increase in first-half business activity and improving operations across New Zealand, Australia and the Americas.
    [Show full text]
  • Download Fact Sheet
    As of 31 July 2021 Market overview In a month with a lot of noise and very little information, bond yields dropped in For more information on our Funds, July and share markets generally climbed slightly. Gold bounced as, along with please contact: bonds, the metal benefited from safe-haven status as the market see-sawed from fears of inflation to fears that the growth resurgence may not last (fuelled by Delta David Boyle variant scare stories). Head of Sales & Marketing During August, many NZ and Australian companies will report their June year Level 29, SAP Tower results and take the opportunity to update investors with outlook statements. The 151 Queen Street, Auckland US reporting season is already well underway and has been strong in terms of New Zealand reported results. Outlook statements have been a little cautious, and we expect a P 0800 646 833 similar vein to prevail in Australasia this season – earnings growth for the year E [email protected] should generally be strong. However, with central banks slowly removing www.mintasset.co.nz monetary accommodation and businesses facing rising cost pressures FY22, we expect some conservatism in outlook statements. The NZ market fell slightly (on the last day of the month in fact). Real Estate stocks were stronger on some expectation that a few of the NZ REITs could be added to the FTSE / NAREIT global index. Z Energy held a relatively upbeat investor day, and Mainfreight delivered again with very positive comments at their AGM. Kathmandu and NZ travel related stocks suffered from the lockdowns in Australia.
    [Show full text]
  • Taking a Deep Dive
    Investment Outlook August 2019 Taking a Deep Dive NZ Equities Australian Equities Global Equities BUY Kathmandu BUY Aristocrat BUY Amazon, Mainfreight, Metlifecare, Lend Lease, QBE Insurance, Mastercard, Unitedhealth Z Energy South32 Group, Walmart - Page 21 -Page 24 -Page 27 Investment Outlook August 2019 Jarden Overview August 2019 Interest rates have dived to extremely low depths as economic growth indicators turned down due to trade concerns and tensions between Iran and the US and its allies. Globally central banks have reacted to this by taking a more stimulative stance, including lowering interest rates. The interest rate falls have caused investors to flock to dividend yield equities, resulting in significant share price appreciation. This has been particularly apparent in New Zealand, which has a high proportion of dividend yield stocks. With dividend yield equities doing so well we have provided readers with an overview of the New Zealand electricity sector, which has a very high proportion of dividend yield equities and some interesting longer term dynamics. Looking forward, we see early signs that economic growth is starting to improve which suggests that interest rates are likely to bottom out before rising modestly. Probably the most significant risk to these “green shoots” is a deterioration in trade negotiations between China and the US. As we go to press, President Donald Trump has surprised us yet again by imposing a 10% tariff on the US$300 billion of goods from China that are currently tariff free. The market reaction has been swift with the oil price down nearly 8%, the gold price up US$32/ounce (reflecting the growing interest in gold assets we review the outlook for gold and associated investment options), a modest rise in the Japanese yen, and the US Treasury 10-year interest rate falling under 1.7%.
    [Show full text]