This article originally appeared in the NZ Herald’s Plus magazine and is published with permission.
As Brad Pitt brings F1 to the big screen, Pie Funds shows how New Zealand investors can fast-track their portfolios by investing in Australia.
If you’ve seen the recent F1 film starring Brad Pitt, you’ll know the story: veteran driver Sonny Hayes is called back to the grid to help turn a struggling team into race winners. It’s a reminder that performance isn’t just about speed, it’s about strategy, adjusting to local conditions, and the strength of the team behind you.
The same principles apply to investing and delivering long-term performance, says Mike Taylor, Founder and CIO of Pie Funds (“Pie”).
In July 2025 Pie’s flagship Australasian Growth Fund reached a major milestone, delivering a 10-times return for original investors in 2007. That’s an average annual return of 14.5% per annum for nearly 18 years.
While that’s a pretty rare occurrence in New Zealand funds management circles, it’s no fluke, says Taylor.
Why Australia?
“Firstly, Australia has a bigger population, a faster-growing economy, and they’re wealthier than we are,” says Taylor. “It’s a broader, more dynamic market with greater potential for outperformance.”
That scale and diversity are reflected in the numbers. The New Zealand Exchange (NZX) features around 120 listed companies, while the Australian Securities Exchange (ASX) has around 1,900, with much greater liquidity and more opportunities.
Australia’s market is driven by resources and financials, sectors that historically benefit from global tailwinds. There is also a dynamic small companies sector.
Another advantage for Kiwi investors is that Australia feels familiar, says Taylor. “Many Kiwis have personal ties, and some well-known Australian businesses operate in both countries. That familiarity combined with the scale makes Australian-focused growth funds good investments for Kiwis.”
While Pie’s range of Australasian growth funds hold some New Zealand investments, most of the best opportunities are found in Australia, and you’ve probably never heard of them, says Taylor.
They’re typically dynamic small and medium sized listed companies in sectors like financials, healthcare and technology, he adds.
The right race plan: why active management matters
Pie’s edge in the Australian market comes from its active management approach, which uncovers opportunities others might miss. “Small and mid-cap companies often lack analyst coverage, and that’s where our Sydney-based team excels, identifying undervalued businesses and managing risks like currency movements and market volatility,” says Taylor.
“We spend a lot of time getting to know the companies we invest in. We meet management, check in with competitors, and stay close to what’s happening on the ground. That’s what sets us apart.”
Unlike passive funds, which are tied to index weightings and often favour large incumbents, Pie’s team can adjust sector exposure, respond to economic shifts, and avoid speculative trends, says Taylor. Led by Pie’s Head of Australasian Equities Michelle Lopez, the team’s deep local knowledge and networks allow it to invest with conviction.
“All four of our Australasian growth funds boast impressive track records,” Taylor adds. “If you’re a New Zealand investor looking to grow your portfolio, it’s worth asking whether Pie should be part of your strategy.”
Caution: currency and volatility risks
While Australia may be familiar to New Zealanders, investing there isn’t without risks. Exchange rate movements can significantly influence returns, and tax doesn’t always align neatly with New Zealand’s system, says Taylor.
The ASX’s broader exposure to mining and speculative tech or biotech companies brings greater volatility. While these sectors can offer a big upside, they can reverse quickly, especially if global sentiment or commodity prices shift.
“These risks can be managed with an active fund manager like Pie in the driver’s seat,” says Taylor.
“For investors trying to go it alone, or through passive funds, that volatility can be harder to manage.”
The chequered flag: closing out the win
When it comes to investing across the Tasman, the opportunity is clear, says Taylor.
Australia offers a faster, broader, and more rewarding racetrack. But only if you’ve got the right team in place to steer your portfolio through the straights and chicanes of the market.
So, if you're ready to shift gears and accelerate your wealth, why not put Pie in the driver’s seat of your investment portfolio.
Information is current as at 31 July 2025. Returns quoted are after fees and before tax. Nothing in this article is intended to be financial advice, all information is factual only. Pie Funds Management Limited (“Pie”) is the issuer of the funds in the Pie Funds Management Scheme (“Scheme”), the product disclosure statement of which can be found at www.piefunds.co.nz. Past performance is not a guarantee of future returns. Returns can be negative as well as positive and returns over different periods may vary. The information is given in good faith and has been derived from sources believed to be reliable and accurate. However, neither Pie nor any of its employees or directors gives any warranty of reliability or accuracy and shall not be liable for errors or omissions herein, or any loss or damage sustained by any person relying on such information, whatever the cause of loss or damage. No person, including the directors of Pie, guarantees the repayment of units in the Scheme or any returns of units in the Scheme.