One investment that has served us well over the past year is a holding in Chorus Limited (ASX: CNU) – the owner of New Zealand’s copper telecommunications network, and a major player in the construction of New Zealand’s Ultrafast Broadband Project – New Zealand’s equivalent of the NBN. Chorus has always been a slightly unusual holding for us, in that it operates in a highly regulated industry and has experienced some significant regulatory headwinds in recent years. In addition, its near term growth prospects are not as bright as we would normally like to see, and we contemplate a few years of declining customer numbers. So what initially caught our interest in CNU and how should it be valued? (VIEW LINK)
Tim is the Portfolio Manager of The Montgomery Fund – a concentrated, All-cap Australian equity fund that aims to generate capital growth and income. Montgomery focuses on owning high quality businesses and generating superior returns.