Monthly Commentary February 2024

February fund performance was strong in terms of both absolute return and relative returns, with global share markets continuing to move higher. Global shares were the main contributor for both absolute and relative returns, as well as the ARK Disruptive Innovation strategy which was up double digits for the month. 

Outperformance from the global shares portfolio was driven by positive stock selection in a range of sectors including Info Tech (Nvidia), Communications Services (Meta), and Financials (Palomar and Ryan Speciality). There was some weakness from the consumer discretionary names across the portfolio, with Sony Group, Amadeus IT, Compass and all underperforming the broader market. The ARK Fund was up strongly over February. The top contributors include Coinbase and Robinhood. On the back of crypto asset appreciation and volatility, Coinbase reported 50% year-over-year growth in net revenue for the fourth quarter of 2023. Robinhood reported strong fourth quarter earnings ahead of Wall Street estimates. The top detractors include Roku and Teladoc after fourth-quarter earnings reports came out below expectations. Roku was also impacted by news of Walmart acquiring connected TV competitor, Vizio. The NZ equity funds within the portfolio continued their solid start for the year, outperforming the NZX50 Index. Strong performance from NextDC, Ingenia Communities and Fisher & Paykel Healthcare were key drivers. Local and global bond Funds were in line with, or slightly behind, their respective benchmarks.  

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