The year is nearly over; there’s only a couple of newsletters to go. But before we wrap up for the year, we wanted to tell you about the latest changes to the Spaceship Universe Portfolio.
For this quarter, we have bought one stock and sold one stock.
Life360 is a family networking app.
It allows its users to create “private circles” of family and friends, and through those circles you can coordinate plans and track locations. But it’s not just for fun.
The purpose of Life360 is essentially to allow circles to stay safe and connected.
Typically, the app is used by families who want to make sure everyone is accounted for. When your teenager is staying the night at a friends house, when your other teenager is taking the car out alone for the first time, when your elderly parents need a little more help…
These are all circumstances where the Life360 app could help. (The circle of life!)
We like Life360 for the Spaceship Universe Portfolio for a few reasons.
It’s already incredibly popular — with 25 million users and a top app ranking — and it has an impressive feature set. Even better, there’s plenty of room to expand; in the future, the company might be able to move into areas such as life insurance and identity theft.
Link is the largest provider of services in Australia’s superannuation fund administration industry and also provides registry services.
Unfortunately, we felt the government’s Protecting Your Super reforms and the current low interest rate environment could have a negative impact going forward. These reforms mean that there are less accounts to administer, and the super funds themselves are becoming more concentrated, which means the super industry is becoming more concentrated. This means Link may lose pricing power.
Link’s managing director John McMurtrie recently admitted that operational performance has been impacted by a number of factors lately (although the company has achieved a number of its strategic objectives). Meanwhile, Link’s chair Michael Carapiet said the financial year ending 30 June 2019 had been a challenging one for the company, though the company’s operations have demonstrated resilience.
As such, we decided to exit out of Link.
If you have any thoughts, we’d love to hear from you.
Important! We’re sharing with you our thoughts on the companies in which Spaceship Voyager invests for your informational purposes only. We think it’s important (and interesting!) to let you know what’s happening with Spaceship Voyager’s investments. However, we are not making recommendations to buy or sell holdings in a specific company. Past performance isn’t a reliable indicator or guarantee of future performance.
The Spaceship Universe Portfolio invests in Life360 at the time of writing.