Fisher Funds Blog

Comment by: Frank Jasper | Posted: Tuesday, 6 July 2010

Thanks for your question Andrew. We assess investments on a day to day basis to ensure that only our very favourite companies are included in the portfolio. This, in essence, means that the portfolio is always made up of companies that we regard as “buy... See More” rated. If we find a new stock that ranks more highly on our criteria than an existing investment we would replace the older position with the new stock. This ensures that the portfolio remains fresh and dynamic over time. That said in many ways the ideal investment is a company with a wide moat that generates attractive earnings growth over time and that can be retained in the portfolio over a number of years.

Comment by: Andrew | Posted: Monday, 5 July 2010

Hi Frank

I have a question regarding your investment philosophy with particular regard to your Growth Funds. I have my Kiwisaver in your KS Growth fund and am looking at your International Growth Fund for some diversification, I would pay in regularly with the view of not touching it until 65 (25 years away for me).

Are the shares you have in these funds always going to be rated a "buy"? What would happen if there are shares you considered a "buy" 5 years ago but now may only rate a "hold"? If we buy units over time are we always buying into every share in the portfolio each year or does your buying strategy reflect what you consider to be the "buys" at the time.

My time frame is long term so I would not be concerned about short term volatility but would like to know that I would be putting money into the best buys at the time.

Thank you.
Andrew.

Comment by: Frank Jasper | Posted: Thursday, 24 June 2010

Hi John,

Thanks for your note. You are right yesterday was a very tough day for the Fund with markets down heavily – the smaller company index in Australia fell 2.3% for the day and a rising New Zealand dollar also hurt returns - the Kiwi rose about 1.2% against the Australian dollar over the day.

In terms of individual stocks it was the Fund’s position in Pharmaxis that hurt returns most with the company stumbling on a trial for its drug Bronchitol. We believe this is very much just a stumble which will be overcome in time but the market took a pretty negative view sending the stock down sharply. You mention Vision Group. We have been sellers of this of this holding which is now below 1% of the Fund and hence has very little impact on returns. I have prepared a longer comment on Pharmaxis - if you are interested just send me an email frank@fisherfunds.co.nz and I will forward it.

As far as the Australian mining tax is concerned we have really no exposure to any negative impacts from this in the portfolio.

Overall despite what is a tough market environment the companies you own in the portfolio are performing well from a fundamental point of view – growing profits being the main metric we focus on. Over time the market will recognise this and reward them with higher share prices.

Best regards,
Frank.