Local equities find Fisher Fund favour

Friday 20th July 2001

By Chris Hutching

Local equities may fail to register on the radar screens of most funds managers but this attitude has given Auckland-based specialist Carmel Fisher a niche when international shares are in the doldrums.

Fisher Funds Management has held investment briefings in Christchurch, Wellington and Auckland to raise the fund's profile among financial advisers. Speakers included three chief executives of companies she has invested in - Baycorp, Sky City and Waste Management.

Their involvement highlights the research style of Fisher Funds Management, which Ms Fisher says is based on personal research of the companies and the calibre of their management team.

"It's important to eyeball the chief executives. I've learned a lot through trial and error. Once I thought that all relevant information was disclosed in annual reports or that brokers had special insights."

Mrs Fisher focuses on second- and third-tier listed New Zealand stocks as opposed to the top 10, which have proved a dampener on index performance. Since it was set up four years ago the Fisher Funds Growth Fund has returned on average 15% per annum after tax and fees, even when the NZSE40 gross index fell 8% last year.

Funds under management have grown to $90 million since Mrs Fisher and husband Hugh set up the fund in late 1998 when it had $17 million under management from funds invested originally with Sovereign. By mid-2000 it had grown to $46 million and has become more attractive in recent months with the stronger relative performance of mid to smaller local stocks.

Most investment money comes from financial advisers often using the Aegis wrap account. Financial intermediaries, who have been watching the fund's progress, appear to be viewing it favourably.

"We have a competitive advantage investing in our own backyard where there are a lot of overlooked opportunities. Most attention goes on the top 10 companies but the bottom 30 are seldom talked about. And we have a better ability to monitor companies from New Zealand. We know the companies and their brands and how Kiwis feel about them. We would never invest without meeting the management team.

"The local sharemarket has had a bad press: you don't need to go overseas to find real investment opportunities. We have a long-term investment strategy. One way to look at it is to imagine the Stock Exchange is going to be closed for five years and you are choosing stocks you would be comfortable with for that period."

Mrs Fisher was never a fan of the technology sector and viewed the dot com companies as a passing fad. Recent favourites have included Baycorp, Sky City, The Warehouse, Met Lifecare and GPG.

In the early 1990s Mrs Fisher managed the Prudential Emerging Companies Trust, later working for four years managing the Sovereign Select Equities Fund before taking maternity leave when she formulated plans for a niche growth fund based on local shares.

Mr Fisher handles administration and client services while Mrs Fisher remains the key decision-maker and concentrates on investment matters.

Comments from our readers

No comments yet