Fisher & Paykel (FPH) re-rated during the December 2015 quarter, particularly following the release of its H1 FY16 financial results in late November. We expect both the respiratory and acute care division and the obstructive sleep apnoea division to continue to grow at double-digit rates over the medium term driven by market share gains and new product launches. Margins are continuing to improve due to an increasing proportion of manufacturing coming from the company’s lower cost facility based in Mexico, and less from the traditional manufacturing based in New Zealand. Although we trimmed our weighting slightly into share price strength, FPH remains a core portfolio holding.