ACX set to grow earnings and international footprint

During the month, the Fund added Aconex Limited (ACX) (+14.1) to the portfolio, a market-leading cloud collaboration platform for the global construction industry. The Aconex platform streamlines and standardises documentation, process management and communications across all project participants, tracking and capturing critical information on a single integrated platform for the life of a construction project. ACX operates a subscription-based revenue model with the price based on project size and complexity, which is charged as a percentage of total construction value. Customers subscribe to ACX for the duration of a project. With average construction project length of around three years and high renewal rates, revenue visibility is high. ACX has established a dominant and highly profitable position in the Australian and New Zealand market and is now replicating this success in larger international markets. We expect ACX to grow earnings rapidly in the coming years and believe the company has high calibre management with a strong strategic vision.