Your investment options
At Craigs we provide you with the flexibility to build a portfolio of investments from our list of investment options.
We have over 240 investment options available for you to invest in. Our investment options include a range of equity, fixed interest, investment trusts, NZ managed funds, index funds and listed property trust investments, available on local and international listed and unlisted markets.
If you would like to review and make changes to your portfolio please contact your Craigs investment adviser or our Client Services team.
Read our research insights on three of our current investment options below.
TechnologyOne Ltd
TNE.ASX | Technology
Our Classification: Supplementary
Risk indicator: 7/7
Sustainability score: N/A
About TechnologyOne
TechnologyOne (TNE) is a developer and provider of enterprise software (integrated software utilised within an organisation for business functions). It operates primarily in Australia, New Zealand and the United Kingdom. The company’s customers are largely central government, local government and institutions operating in the education, health and financial sectors.
What makes TechnologyOne different?
TNE markets itself as the only vendor that develops, sells, implements, supports and runs a fully integrated suite of enterprise software solutions. The company has an impressive track record; its revenue has grown by an average of almost 15% over the past ten years. Over this same time, net profit after tax has increased at a similar rate. Despite spending more than 20% of annual revenue on research and development, the company generates consistently strong free cash flow and return on invested capital.
Opportunities and threats
TNE has migrated most of its customers from on-premises solutions to the company’s cloud offering, allowing for a more streamlined product offering and better margins. Software as a Service (SaaS) customers have access to TNE’s next-generation SaaS Enterprise Resource Planning with sophisticated cybersecurity and new technologies, such as artificial intelligence and its new Digital Experience Platform. Its customers continue to use more products and modules over time and embrace its simplified vision for enterprise software.
Our view and outlook
TechnologyOne trades at a premium valuation consistent with its sizeable long-term growth profile; the company’s expectation is that it will continue to double in size every five years. Over 90% of TNE’s revenue is recurring and is mostly linked to inflation. The company enjoys a customer retention rate of close to 99% with decisions on enterprise software decisions typically made for the long term. TNE is an operationally robust and high-quality business.
Eli Lilly and Company
LLY.NYSE | Healthcare
Our Classification: Core
Risk indicator: 7/7
Sustainability score: N/A
About Eli Lilly and Company
Eli Lilly (LLY) is the largest healthcare company in the world and a leader in the emerging GLP-1 drug class (medicines that help manage blood sugar levels in people with Type 2 diabetes). LLY is a leading US biopharmaceutical company specialising in the development, manufacturing, and distribution of treatments across four therapeutic areas (diabetes, oncology, immunology and neurology). Like Novo Nordisk (NVO.NYSE), LLY has been a pioneer in the treatment of diabetes for over a century and is the second largest player in this market. Diabetes treatment is (currently) the company’s largest business segment accounting for 60% of total sales.
What makes Eli Lilly and Company different?
LLY’s research and development (R&D) capabilities, intellectual property, scale and distribution network are its key strengths. The company possesses a robust portfolio of products fortified by long-term patent protection, positioning it with substantial pricing power and enabling superior returns on invested capital compared to its cost of capital. Historically, LLY has allocated an average of 25% of its revenue towards R&D over the past decade, significantly surpassing industry averages. This strategic investment places the company in a favourable position to innovate and usher in the next wave of pharmaceutical products, ensuring continual rejuvenation of its product line and fostering sustained growth over the long-term.
Opportunities and threats
LLY’s long-term growth prospects will be tied to the future of its GLP-1 products which include Mounjaro and Trulicity for diabetes and Zepbound for weight loss. These drugs represent around 40% of the company’s total sales and produced nearly 50% growth in the first quarter. Given Mounjaro and Zepbound’s best in class efficacy in diabetes and weight loss they are expected to grow very rapidly out to 2030 hitting sales of US$52bn. That compares to just US$4.9bn in 2023. There is room for upside in our view given GLP-1s have shown effectiveness in treating other diseases and other medical conditions. For example, recent data has shown tirzepatide (the active ingredient in Zepbound and Mounjaro) to be effective in the treatment of sleep apnea. There are trials currently testing its effectiveness at treating heart failure (data expected in 2024-25), and renal disease (data expected in 2026).
Our view and outlook
LLY is well positioned among its US biopharmaceutical peers thanks to its diverse portfolio of innovative products with patent protection over the next decade. Its GLP-1 products, Mounjaro and Zepbound, are positioned for explosive growth over the medium-term. Its next generation of products that are in development (retatrutide and orforglipron) position the company well over the longer-term. Aside from its GLP-1 products, its Alzheimer’s drug, donanemab, offers blockbuster potential and another leg of growth from 2025 and beyond.
Fisher & Paykel Healthcare Corporation Limited
FPH.NZX | Healthcare
Our Classification: Core
Risk indicator: 7/7
Sustainability score: 4.8/5
About Fisher & Paykel Healthcare
Fisher & Paykel Healthcare (FPH) is a global leader in manufacturing products used in respiratory and acute care, primarily in a hospital setting, as well as those used to treat obstructive sleep apnoea. FPH has developed specialised expertise in heated humidification and warming that forms the basis of its strong market position and product differentiation.
What makes Fisher & Paykel Healthcare different?
One of the key attractions of the FPH business is the highly predictable nature of existing revenues. Typically, around 80% of the company’s revenues are generated from their consumables and accessories products. The remaining revenues are derived from hardware or devices. Devices are the core machines that FPH produce, such as humidifiers and flow generators. Consumables are all the auxiliary attachments and products which are connected to the core device. Spending on consumables is supported by the single-use nature of these products – which include masks, filters, breathing circuits and tubing.
Opportunities and threats
FPH is the clear global leader in humidification for patients requiring invasive ventilation. With this market maturing, the company has developed new products further down the care scale in non-invasive ventilation, oxygen therapy and chronic obstructive pulmonary disease. The addressable patient groups in these new applications are far larger than the company’s invasive ventilation products. Oxygen is the most commonly prescribed therapy in a hospital setting, and a growing number of clinical studies attest to the benefits of patients having oxygen supplied at a higher flow and with humidification in various use cases.
Our view and outlook
FPH is one of the highest quality companies listed on the NZX. It has leading products and positions in the markets in which it operates, a proven track record and large opportunities, particularly with its Optiflow and myAirvo products. The company was a beneficiary of COVID19, with the pandemic seeing the rapid installation of its devices (especially those used for Optiflow), expanding FPH’s market and boding well for future growth. While the stock is rarely cheap, we think investors should focus on the long-term prize.
About risk indicators and sustainability scores
Risk indicators are assessed by Craigs Private Wealth Research team and are rated from 1 (low) to 7 (high). The rating reflects how much the value of the company goes up and down (volatility). A higher risk generally means there is the potential for higher returns over time, but with the risk of higher losses, and there are likely to be more ups and downs along the way. To help you clarify your own attitude to risk, work out your risk profile at craigsip.com/risk-profiler or speak to your Investment Adviser.
Sustainability scores are assessed by Craigs Private Wealth Research sustainability team and are calculated as an average rating out of five for environmental, social and governance factors. An N/A sustainability score means a sustainability assessment has not been made. For further information on how we calculate these scores, please refer to this report or speak to your Investment Adviser.