With this years’ Bledisloe Cup getting underway at the end of September, rugby fans on both sides of the ditch will once again turn their attention to the storied rivalry between the All Blacks and the Wallabies.
A look back at the match stats since their first clash in 1903 tells us Australia has often been a happy hunting ground for the All Blacks, who’ve triumphed in 56 of the 90 tests (or 62%) played on Australian soil.
So as the All Blacks look ahead to this year’s Bledisloe tests in Auckland and Perth, Kiwi investors might take a cue and consider another venue rich with opportunity: the Australian share market. For New Zealanders the ASX presents a compelling case for diversification, growth and outperformance - especially with an active fund manager on their side.
Home and away: Australia’s market scale
If the NZX is Eden Park – revered, proud and familiar - then the ASX is the Melbourne Cricket Ground: boisterous, expansive and dynamic. With over 2,000 listed companies, the Australian share market dwarfs New Zealand’s in both breadth and depth. That means more sectors, more liquidity and far more space to run in for ambitious businesses and savvy investors.
How does that translate to results? Over the five years to 30 June 2025 the S&P/ASX 200 returned almost 44%, comfortably ahead of the S&P/NZX 50’s 11% gain over the same period.
And while headline indices tell one story, a real point of difference lies in Australia’s small-cap space. The S&P/ASX Small Ordinaries also posted strong gains over the same period, highlighting the strength of Australia’s innovative, fast-moving lower-tier stocks - areas of the market that are under-represented and often illiquid in New Zealand.
Winning the breakdown: sector strengths across the ditch
While the NZX is heavy on utilities (like electricity gen-tailers) and consumer stocks (like food and beverage producers), the ASX brings different strengths to the pitch. Australia’s market is driven by resources and financials, sectors that historically benefit from global tailwinds like commodity cycles and rising interest rates.
In the 12 months to 30 June 2025, (small-cap) gold mining companies like Spartan Resources and Gold Road Resources delivered impressive returns of 109% and 87%, respectively. With gold prices buoyed by trade uncertainty and geopolitical risks, these stocks soared and reminded investors of the power of sector exposure.
Australian banks, too, performed strongly over the same period. Westpac saw a 25% rise in its share price, and Commonwealth Bank, with a share price rise of 47%, regained its spot as the most valuable company on the ASX. These gains were fuelled by international capital inflows and the relative stability of the Australian financial system.
Referee’s warning: currency and volatility risks
Of course, investing across the Tasman doesn’t come without risk. Exchange rate movements between the New Zealand and Australian dollars can significantly influence returns, and tax treatments don’t always align neatly with New Zealand’s imputation system. But these risks can be managed by an active fund manager.
The ASX’s broader exposure, particularly to mining and speculative tech or biotech names, also brings greater volatility. While these sectors can offer big upside, they can reverse quickly, especially if global sentiment or commodity prices shift. For investors trying to go it alone or through passive vehicles, that volatility can be hard to manage.
The right game plan: why active management matters
That’s where active management makes all the difference. Just as a smart rugby coach will devise a game plan and pick the players best suited to beating the opposition, an experienced active manager knows how to navigate the unique conditions of the Australian market.
Active managers have the tools to uncover undervalued or under-the-radar stocks - especially in the small and mid-cap sectors where research coverage is light and risks can be hidden. And they can manage the risks such as exchange rate movements.
They can respond to economic shifts, adjust sector weightings, and avoid common pitfalls like crowding into speculative themes. Passive funds, in contrast, are locked into whatever the index dictates - often overweighting large incumbents and ignoring emerging players.
For Kiwi investors, partnering with an active Australian equities manager is not just a tactical move, it’s a strategic one. Pie has been successfully investing for our clients in Australia since 2007, and our winning edge comes from the local knowledge of our specialist, six-strong team on the ground in Sydney. As for the results, the scoreboard shows our four Australasian equities funds have performance track records that would rival even the best All Black teams.*
The final whistle: closing out the win
So as the All Blacks eye more Bledisloe success on both sides of the Tasman, perhaps it’s time for New Zealand investors to do the same with their portfolios.
The Australian share market offers size, diversity, and growth potential far beyond what’s available domestically.
But it pays to have the right coaching team on your side to help direct your strategy. Partnering with an active manager who has an intimate knowledge the opposition’s strengths and weaknesses will give you the edge you need to outperform and win.
*As at 30 June 2025 Pie’s Australasian Growth, Growth 2, Emerging Companies and Dividend Growth Funds had all outperformed their benchmarks since inception, with our flagship Australasian Growth Fund having returned close to 1,000% (or more than 14% per annum) since inception in 2007. Our latest fund performance information can be found at: https://www.piefunds.co.nz/Performance
Information is current as at 30 June 2025. Pie Funds Management Limited (“Pie Funds”) is the issuer and manager of the funds in the Pie Funds Management Scheme and the Pie KiwiSaver Scheme (“Schemes”), the product disclosure statements of which can be found at www.piefunds.co.nz. Any advice is given by Pie Funds 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 Schemes, 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 disclosure statement, please visit www.piefunds.co.nz. Please let us know if you would like a hard copy of this disclosure information.