3/30/2022 11:00:00 PM

What sectors are performing in volatile times?


During periods of high volatility, defensive, solid sectors like infrastructure and healthcare can perform well.

Infrastructure has been a stable sector when the outlook is uncertain, and when consumer discretionary spending is under pressure due to rising costs.

Companies in the infrastructure industry have provided strong opportunities for the Australasian Dividend Growth Fund. One example of this is Johns Lyng Group, an Australian-based building and restoration services company. There is strong demand for this type of work, particularly after the severe weather events in Australia.

Digital infrastructure has been a strong performing area too. Uniti, an Australian company, provides broadband internet infrastructure. Uniti is the fund’s largest position; a position justified by the multi-year growth profile, defensive nature of cash flows and strong demand for fibre assets globally, supporting its valuation.

Our active management strategy means we can also be nimble and take advantage of opportunities in growth companies and sectors across Australasia, in this ever-changing environment. This strategy is used for our award-winning Australasian Dividend Growth Fund. Its portfolio favours companies exposed to structural growth tailwinds, led by founders or management with skin in the game. The fund has a risk rating of 5 out of 7 (high risk).

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Pie’s award-winning Australasian Dividend Growth Fund: 

+ Aims for long-term capital growth
Diversify your investments through exposure to Australasian opportunities, as we aim to deliver long-term capital growth.

+ Makes six-monthly distribution payments
For investors seeking a regular source of income, the fund pays six-monthly distributions. Investors can be paid these directly or have them reinvested back into their fund.

+ Selects hand-picked smaller high growth Australasian companies
Invest in quality companies hand-picked by the investment team. Our specialised researchers use analysis and experience to identify opportunities that might not be so readily apparent to retail investors.

+ Has been one of Pie’s best performing funds
The Australasian Dividend Growth Fund has significantly outperformed its market index for more than 10 years. The fund has an annualised return since inception of 18.1%*, compared to its market index return of 4.8% for the same period. It is a result we are very proud of. (Figures are after fees and before tax as at 31 March 2022).

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Past performance is not a reliable indicator of future performance. Returns can be negative as well as positive and returns over different periods may vary.

*Figures are after fees and before tax as at 31 March 2022, showing annualised return since inception. Market index used is XSOAI S&P/ASX Small Ordinaries Total Return Index. The fund was established in 2011.

View the Product Disclosure Statement (including details of the risks associated with this fund) plus our duties and complaints process, at www.piefunds.co.nz. Information is current as at April 2022. Pie Funds Management Limited is the manager of the funds in the Pie Funds Management Scheme. Any advice is given by Pie Funds Management Limited and is general only. Our advice relates only to the specific financial products mentioned and does not account for personal circumstances or financial goals. Please see a financial adviser for tailored advice. You may have to pay product or other fees, like brokerage, if you act on any advice. As manager of the Pie Funds Management Scheme investment funds, we receive fees determined by your balance and we benefit financially if you invest in our products. We manage this conflict of interest via an internal compliance framework designed to help us meet our duties to you. For information about how we can help you, our duties and complaint process and how disputes can be resolved, or to see our product disclosure statement, please visit www.piefunds.co.nz. Please let us know if you would like a hard copy of this disclosure information.

Pie’s Australasian Dividend Growth Fund has been named the winner of Research IP's Australasian Equities Fund of the Year. Fund Manager of the Year Awards were announced by Research IP on 2 December 2021. These awards should not be read as a recommendation by Research IP. For further advice on the relevance of this award to your personal situation, please consult your financial adviser, or visit research-ip.com.