Rangatira Annual Report 2023 - Flipbook - Page 13
Ra n g a t i ra An n u a l Re p ort 2023
Further, some parties participating in the capital raise
yields like APC, Polynesian Spa, Rainbows End and Bio-Strategy.
expressed an interest in co-investing alongside us on a case-by-
Looking forward, in addition to meeting cash flow expectations
case basis. It is envisaged this might occur where an opportunity
in respect of the Rangatira dividends, we need businesses that
warrants an investment greater than what Rangatira can
can offer both organic and acquisitive growth to ensure we
sensibly provide, further enabling our ability to consider
continue to offer the returns that shareholders have become
investments in larger and more developed businesses.
used to. Recent examples in the portfolio have been Hellers,
Partners Life, Magritek, BeGroup, NZ Scaffolding, the Kiwifruit
While we have certain sectors and industries that we prefer,
developments and, in time, Boulcott Hospital.
we are also focused on businesses that offer not just cash yield
but also capital growth. We have several businesses that offer
Listed shares
As at 31 March 2023
$m
YTD TSR
Benchmark
New Zealand Income
12.7
+5.2%
-1.2%
New Zealand Growth
9.9
-4.0%
-1.2%
New Zealand Trading (inc. Aroa)
3.1
-4.7%
-1.2%
International
16.1
-2.0%
+1.6%
Total
41.9
-0.5%
n/a
Listed shares continue to be an important part of the portfolio
dropped from record highs at the peak of Covid. Scales were
as a place to invest capital while we have excess liquidity to
impacted by Cyclone Gabrielle. Regardless, we still have a
deploy into private investments. In the last 12 months, we have
strong conviction in these companies as longer-term holdings.
been cautious to increase our holdings in listed shares as we
were not confident of the direction of the market. Over the last
Our trading portfolio is small and made up of a significant
three years, this portfolio has ranged from $38-80m in size and
position in Aroa that we acquired through our investment in the
delivered a 13.2 per cent pa return.
Movac III funds, which was an early investor in Aroa. Where we
might normally sell these holdings, the stock has continued to
NZ Income portfolio performed well with our larger holdings
perform well, and we remain confident in the business and the
in Meridian, Contact, Mercury and Infratil. Infratil, which is our
Management.
largest holding in the listed portfolio was particularly strong
and continued this past March. We have further increased our
We remain confident in Intermede, who manage our
holding through the recently completed rights issue. We see
international portfolio. During this year there has been a
this as one of the standout companies on the New Zealand
significant swing away from the growth stocks as signs of
exchange.
recessions loomed around the world. This has meant that
Intermede has not performed well against its benchmark as
The Growth portfolio has not performed so well, due to holdings
they favour growth stocks. This trend has reversed post balance
in Fisher and Paykel Healthcare, EBOS, Scales and Mainfreight.
date where we have seen better relative performance from
Mainfreight had the greatest impact on the portfolio, as it
Intermede.
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