To watch this month's video, click below. For the full story, keep reading.
Markets stay strong, despite global tensions
May was a particularly strong month for global equity markets, while June has been somewhat flatter. Nevertheless, markets have demonstrated impressive resilience in the face of ongoing geopolitical tensions, including the recent escalation between Israel and Iran.
Although the situation continues to evolve, the announcement of a ceasefire may help calm investor nerves. Despite the headlines, global markets have remained largely optimistic, and the outlook remains positive — driven by consistent consumer demand and solid corporate profits.
As mentioned, “Markets are unemotional when it comes to profitability — if the numbers are strong, they’ll continue to rise.”
Indeed, many indices are again brushing up against all-time highs, and our funds have responded well to these conditions.
European optimism rising
I recently returned from Europe, where I met with our UK-based team. There was a palpable sense of optimism on the ground. Despite short-term concerns such as tariffs, there’s a growing sense of unity among European nations.
Germany, traditionally cautious with fiscal policy, is now relaxing budget constraints, while the UK is showing early signs of a consumer spending rebound. This broader shift toward expansionary sentiment is a positive signal for investors with exposure to the region.
Australasian Growth Fund shines
Closer to home, Michael Goltsman discusses the strong performance of the Australasian Growth Fund - Pie’s first-ever fund, launched in 2007 - which has delivered a return of 32% in the past year and an average of 18.4% per annum over the past three years (as at 31 May 2025).
Michael credits this to disciplined stock selection and a refusal to be distracted by short-term news. Instead, the team has remained focused on uncovering businesses where short-term challenges have masked longer-term structural strengths.
Spotlight on Catapult
One standout example is Catapult (ASX:CAT), a global technology company that provides performance-tracking wearables and video tools to elite sports teams around the world.
After shifting from a capital sales model to a subscription-based one, Catapult experienced a temporary dip in revenue — a change the market was slow to embrace.
However, Pie Funds saw the long-term value and reinvested early. Fast forward to today, and those changes are bearing fruit. The company is now enjoying consistent growth in earnings and cash flow, with its share price reflecting that momentum.
Catapult’s video analysis tools, already used in Formula 1, are now being adopted by soccer clubs and NFL teams — expanding its reach and growth potential.
As always, thank you for your continued trust and support. We look forward to bringing you more insights in next month’s market update.
If you have any questions, please feel free to reach out to the team.
Information is current as at 24 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. 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 Funds 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 Funds, guarantees the repayment of units in the Schemes or any returns of units in the Schemes.