In this month’s video, Pie Funds’ Founder and Chief Investment Officer Mike Taylor and Portfolio Manager Mike Ross join Wealth Adviser Sam De Court to discuss the key themes shaping trans-Tasman and global markets.
Global markets stay strong
So far, September has brought more positive surprises for investors, with global markets continuing their upward run and several major indices reaching new highs.
Mike Taylor notes that September has defied expectations, with the S&P 500, NASDAQ, Dow Jones, and the Russell 2000 (US small-cap index) all posting fresh highs for the first time in four years.
“This is a clear confirmation that markets are in a bull phase,” he explains. For investors who endured a challenging period in US small caps since 2021, the recovery marks an important turning point.
However, Taylor cautions against assuming markets will rise in a straight line.
“After six months of strong gains, a pause or pullback would be perfectly normal. Whether it’s 3%, 5%, or 8%, corrections happen every year. They’re healthy, and nothing we’re seeing today gives us cause for concern.”
Australasian small-mid caps are delivering growth
Closer to home, Mike Ross highlights that Pie Funds’ Australasian funds have delivered strong gains - with one year returns of 22% to nearly 50% (as at 31 August 2025, after fees and before tax). Ross attributes this to a fertile environment for earnings growth among small- and mid-cap companies across Australia and New Zealand.
“Ultimately, it’s earnings growth that drives share prices. We’re finding exciting opportunities on that front, particularly given supportive policy settings such as recent rate cuts,” says Ross.
Australasian Dividend Growth Fund update
Ross also discussed the upcoming closure of the Australasian Dividend Growth Fund to new investment, which was recently announced to current investors in the fund. “This is about maintaining agility and maximising returns for existing investors,” he explains. “The fund focuses on smaller companies, where liquidity can be a factor. Keeping the size manageable is in the best interests of our clients.”
Looking ahead
While short-term volatility is inevitable, both Taylor and Ross remain constructive on the outlook. As Taylor concludes: “We continue to see opportunities and remain positive for the months ahead.”
If you have any questions, please feel free to reach out to the team.
Information is current as 26 September 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.