BUSINESS SUCCESS Piefunds
One of the things we love doing at Channel Magazine is uncovering real success stories in the community. This month we’ve discovered that one of New Zealand’s most successful boutique investment funds is based right here in Northcroft Street, Takapuna.
You’ll want a slice of this Pie!
The fund, called Pie Funds, has been the top performing equity fund in New Zealand over the past three years. Providing a return of around 50% for investors over this time.
This success has been driven by Managing Director Mike Taylor, a local born and bred lad – ex Kristin School – who is just 30 years of age. Mike Taylor founded the fund back in 2007 along with Richard Avery-Wright. The four-strong board of directors is completed by well known Kiwi business identities Roger J. Kerr and Mike Henry who made his name in travel insurance. Henry just happens to be Taylor’s father-in-law.
Prior to launching Pie Funds Mike Taylor worked for a number of large financial institutions in New Zealand and the UK, including ABN Amro NZ, FX Derivatives, Merrill Lynch and the Bank of Scotland. He was keen to apply this experience to his own business once back in New Zealand.
Initially Mike and his wife Jacqui lived close to the city on the other side of the bridge, but once their children were on the horizon (there are now two – aged two and five months) they were keen to get back to the lifestyle that the Takapuna area provides. They live at Hauraki Corner.
“In hindsight we picked the absolutely worst time to launch the fund, December 2007,” explained Mike Taylor when quizzed about how he launched the fund. “We started with $3 million and the first couple of years proved to be very tough as most in business during 2008 and 2009 will know. But we have stuck at it, worked hard, and the fund has now built up to just under $10 million. We started with just a handful of investors and now have over 100. The fund has returned around 50% since inception, which makes us the top performing equity fund in New Zealand over this time. This is very satisfying.”
Pie Funds invests in smaller companies on the Australian and New Zealand share markets. These are typically companies with a market capitalisation of between $50 and $300 million. These are companies that exhibit rapid growth in earnings and Pie Funds takes advantage of the market’s undervaluation of future earnings.
“Smaller companies are often under researched and not followed by the investment community in general. Therefore they are often inefficiently priced, providing greater opportunity for astute investors,” explains Taylor.
The Australian share market provides most of the trading action for Mike Taylor. He explains that this is because the Australian economy is stronger and it has over 2200 companies on the share market while there are only around 170 locally. Due to the time difference his typical working day consists of research and administration through until around midday and then the afternoon, through until around 6pm, is for trading.
“I am very keen to attract more local investors from the Shore,” advises Mike Taylor. “The advantage that I can offer is personal service and contact. So often now when you are investing, with big institutions via the internet and email, you have very little personal contact. When investing with Pie Funds, investors can ring me up or come and visit me in person to discuss their investment.”
The minimum investment at Pie Funds is $5000. The fund is higher risk designed for those who want to buy into the high growth potential of smaller companies but do not have the expertise or time to find such companies.
“In general people invest money that may be on deposit in the bank and they want to put part of it in shares but don’t have the time or knowledge themselves,” explains Mike Taylor.
For more information contact Mike Taylor, Pie Funds, Telephone 486 1701 or 021 888 231, email: mike@piefunds.co.nz, www.piefunds.co.nz
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