Managed funds

[Basil]

Thanks Dolcile.  Yes, there's an interesting back story to how I navigated the Covid crisis in early 2020 and resulting performance to the year ended 31 March 2021 that I might share sometime. 

I see PIE have updated those returns in that link for Sept 30 now.  No question about it, 16.8% average over 5 years is a very good result for the PIE Australian dividend growth fund.  Its a bit of a shame their other funds are not performing so well.

[Shareguy]

Thanks Basil. 

Your caution is warranted and only time will tell as you say.  Like you, I have also done very well with my direct investments and sold out of most of my shares this year to fund a property. Its also good to realize a profit.  However from what I have gleamed I think the Aust small/mid caps still have a way to go. No doubt Pie had a couple of bad years during the period Mark and Chris left which has negatively impacted the five year figures. The growth 2 fund which you have highlighted on a five year basis is their worst performing fund. Their flagship growth fund actually was 10.9 percent over the five years.  If you look at the 3 year which takes out Covid and the changeover from Mark and Chris the returns are much better

Growth    29 Percent
Growth 2  17 percent
Divi        19.7 percent
Emerging  25 percent

As we know both Pie and Discovery believe that their is further growth. Both companies have done well finding under valued and take over targets. Have a look at this from Perpetual 

https://www.perpetual.com.au/insights/why-asx-small-and-micro-caps-are-starting-to-outperform/?PreferredLocation=true

Also I find the 10 or 15 working days for a withdrawal attractive if I see something that I believe is better.  Plus its a Pie fund which has tax benefits.  The other thing is to consider is time.  For me I want to spend more time in the boat looking for Sailor Rob and others.....

[Basil]

Thanks Shareguy.
As Perpetual correctly note, falling interest rates are generally a tailwind for smaller and microcap companies and your point about the transition of fund managers when Chris and Mark left is well made.  Being a bit older and more conservative I'd be more inclined towards looking at the longer term performance than the shorter term and certainly the 15% per annum performance since the inception of their flagship Growth fund is very impressive over the long run.

Perpetual have also done very well with their Pure Microcap fund at 18.71% 5 year average so they have some good skills in that space as that sort of performance is hard work to achieve.

Agree 100% about the value of time, especially in regard to boating and perhaps even more so when it comes to walking my best mate, my dog lol.  Frankly, I have "control issues".  I struggle to let go of managing a meaningful portion of my portfolio.  Maybe that's an occupational hazard, a personality trait, or my past outperformance, most likely a combination of these factors.  That's very much a work in progress for me and on the agenda for late 2026...a time in my life when I am perceiving it will be age appropriate that I really should step back quite a bit.  I think turning 65 late next year is something of a benchmark event in life, certainly I feel it will be in mine, a time when I really need to look at where I'm spending my time as nobody, not me or anyone else really knows how much time they have left.  Nigel Latta's final book "Lessons on Living" is something I am really keen on reading very soon and I'm not really a great reader so obviously something inside me is telling me to read that to gain more perspective.  I think it will be a fascinating book.

Maybe PIE's growth fund and their Australian dividend growth fund might be a good place for me to allocate some funds in due course, I'll mull that over.  I don't see much in the way of special expertise with their European and international funds.  Their the long term performance speaks for itself.

[Shareguy]

Yes it is hard to give up control and give your hard earned  money to somebody else to manage, however those returns are very attractive. Still planning on investing directly in the New Zealand share market because I enjoy it. Agree with commentators that this interest rate melt up will continue. However it's very satisfying signing into Discovery and Pie Funds portals and seeing how your Investment is doing. Note Pies dividend fund is closing later on this month.


Nigel latta's passing was certainly a shocker. I have seen people that are very fit and healthy pass away way too early. I've also seen people that are the opposite and have punished their body with smoking and drinking who are in their 80s and 90s.

One thing for sure, you gotta make the most of it.

[Basil]

Checking in on daily updates of the Discovery fund is usually a very enjoyable part of the day, (today's update included).  Many thanks indeed for your encouraging posts about Discovery, its been a very rewarding experience.  Thanks for the heads-up about Pies dividend fund closing. 

[Dolcile]

As an aside, the "Dividend" title of that fund I think is a bit misleading.  I've had a look at the holdings and the sipo and to me it is far more a small cap growth fund.

[777]

I have money in six of the PIE funds.

Looking at 31/3/22 performance figures for Growth 2

1 mth  11.70%
3 mth  -9.72%
6 mth  -16.52%
1 yr   -9.2%
3 yrs  17.31%
5 yrs  14.83%

It was the last 12 mths performance that made me reluctant to invest in Discovery as I was concerned that the two founders may have been responsible for the lack of performance. In hindsight a costly decision.


The point is the Growth 2 fund had underperformed before they left.
 

[777]

31st March 2022

Performance Unit Price
Fund       1 month   3 months   6 months   1 year   3 years (p.a)   5 years (p.a)   7 years (p.a)   10 years (p.a)   Since inception (p.a)   Total since inception   Status
Australasian Growth
Dividend Growth      6.48%   -4.86%   -1.09%   21.92%   20.48%   17.15%   15.25%   17.72%   18.07%   476.49%   
Growth      -0.21%   -15.59%   -18.58%   -9.79%   9.69%   9.09%   7.83%   12.21%   14.35%   582.89%   CLOSED
Emerging      4.22%   -4.38%   -5.77%   3.84%   18.96%   15.09%   16.04%   -   21.43%   473.21%   
Growth 2      11.70%   -9.72%   -16.52%   -9.20%   17.31%   14.83%   -   -   15.34%   157.96%   
Global Growth
Global Growth      -2.60%   -13.69%   -10.42%   0.67%   14.27%   11.87%   10.52%   -   10.44%   134.51%   
Growth UK & Europe   0.17%   -11.47%   -8.59%   -1.46%   13.49%   10.06%   -   -   11.30%   78.55%   
Global Growth 2      -0.77%   -13.98%   -8.51%   -0.99%   7.63%   -   -   -   3.91%   16.22%   
Diversified
Conservative      -0.94%   -2.61%   -2.50%   0.00%   2.98%   3.57%   -   -   3.84%   30.05%   
Chairman's      2.15%   -10.36%   -8.90%   1.38%   14.69%   12.21%   11.53%   -   11.54%   128.90%   

[Shareguy]

As an aside, the "Dividend" title of that fund I think is a bit misleading.  I've had a look at the holdings and the sipo and to me it is far more a small cap growth fund.

Yes agree.  Its what attracts me to the fund.

[Dolcile]

1.9% for September from PIE Funds Australian Dividend Fund.  Underperformed the benchmark for the month, but well ahead on all other time periods.

https://www.piefunds.co.nz/Portals/0/Documents/Investment%20Funds/Fact%20Sheets/2025/DIV.PDF?ver=qe-XbrltDht8R0b4Kr5v2g%3d%3d

[Shareguy]

I have money in six of the PIE funds.

Looking at 31/3/22 performance figures for Growth 2

1 mth  11.70%
3 mth  -9.72%
6 mth  -16.52%
1 yr  -9.2%
3 yrs  17.31%
5 yrs  14.83%

It was the last 12 mths performance that made me reluctant to invest in Discovery as I was concerned that the two founders may have been responsible for the lack of performance. In hindsight a costly decision.


The point is the Growth 2 fund had underperformed before they left.
 

Yes I can see how you came to that conclusion.  I also weighed that up at the time as I was also in Pie back then. Came to the conclusion that overall Pie had a couple of bad years that skewed the figures as most years were very good with general outperformance of the relevant index.  The growth 2 fund has not yet been a great success and has  a low entry price compared to the others.  However I have recently put money in to G2 as I like the current holdings and hope its upwards and onwards from here.  But yes Growth 2 needs to perform a lot better.  Certainly the performance of Discovery has been exceptional and I feel very grateful to be in it..  Thanks for posting

[Dolcile]

Another fund I have a position in is the Salt Long Short Fund.  It performed very well during September and I enjoying reading their commentary which is much more detailed than most.

https://www.saltfunds.co.nz/_files/ugd/9b51d8_4230ab1df38f471a8b861f45e386bf9f.pdf

[Basil]

Thanks for sharing Dolcile. Interesting fund.  Do you mid me asking what percentage of your portfolio is in there ?  I might throw them a bone in due course.

[Shareguy]

Another fund I have a position in is the Salt Long Short Fund.  It performed very well during September and I enjoying reading their commentary which is much more detailed than most.

https://www.saltfunds.co.nz/_files/ugd/9b51d8_4230ab1df38f471a8b861f45e386bf9f.pdf

Thanks Dolcile for Posting this. Interesting comments re HGH and Tower.

[Shareguy]

Talking of other funds

https://lighthousefunds.nz/wp-content/uploads/2025/01/Lighthouse-Global-Equity-Fund-202509-September-2025.pdf