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This fund aims for a steady investment return over the medium to longer term without too many ups and downs. The fund does this by investing across a range asset classes with exposure to shares for growth complemented by exposure to bonds and alternatives to reduce volatility.
Growth Fund Strategic Asset Allocation
Risk Indicator (volatility)
Target Asset Allocation
This number indicates the relative 'risk' level of this fund based on the types of assets it is invested in, ranging from level 1 (least risky) to 7 (most risky).
| Risk category | Description of volatility |
| 1 | Very low |
| 2 | Low |
| 3 | Medium |
| 4 | Medium to High |
| 5 | High |
| 6 | Very high |
| 7 | Extremely high |
The risk indicators are calculated using returns of the funds, the returns of the fund’s market index or a combination of both, for the previous five years. Index returns or a mix are used if the fund has existed for less than five years. All Managers are required to use the same methodology so you can compare the risk of different funds if you are researching more than one manager.
Hear from Alan Clarke, Portfolio Manager. In this video, he explains what an average day in his job looks like and how The Nikko AM Balanced Fund works.
| One month | Three months | One year | Three years (p.a) | Five years (p.a) | |
|---|---|---|---|---|---|
| Fund performance1 | -2.70% | -2.28% | 4.77% | 3.42% | 6.44% |
| Appropriate Market Index (AMI)2 | -2.47% | -1.82% | 5.93% | 4.99% | 7.62% |
AMI (appropriate market index) is a theoretical portfolio with similar underlying assets as the fund. This allows investors to see a comparison of how the value of those assets have changed in the market relative to the fund.
| One month | Three months | One year | Three years (p.a) | Five years (p.a) | |
|---|---|---|---|---|---|
| Fund performance1 | -2.69% | -2.32% | 4.56% | 3.34% | 6.41% |
| Appropriate Market Index (AMI)2 | -2.47% | -1.82% | 5.93% | 4.99% | 7.62% |
AMI (appropriate market index) is a theoretical portfolio with similar underlying assets as the fund. This allows investors to see a comparison of how the value of those assets have changed in the market relative to the fund.
| Security Name | Percentage |
|---|---|
| Jpm Global Select Equity X Acc Usd | 12.27% |
| Infratil Limited | 1.58% |
| Contact Energy Limited | 1.53% |
| Fisher & Paykel Healthcare | 1.31% |
| Microsoft Corp | 1.27% |
| Amazon Com Inc | 1.24% |
| Kiwi Property Group Limited | 1.17% |
| Meridian Energy Ltd NPV | 1.08% |
| Goodman Property Trust | 1.06% |
| Summerset Group Holdings Ltd | 1.06% |
Commentary
As of 31 March 2025
Market Overview
Fund Commentary
The fund was down -2.3% in the first quarter of 2025, behind the return of the benchmark (-1.8%).
Global equity markets were weak over the first quarter, and local markets also fell. The Global Multi-Manager Equity Fund trailed the global benchmark, and the two local strategies (Core and Concentrated) also underperformed the NZX50 Index. WCM (‘growth’ style) and JPMorgan (‘core’) underperformed while Royal London (‘core’ style) was ahead of benchmark. Ryman, Spark and NextDC were the main contributors to underperformance locally. Ryman surprised the market with a N$1bln capital raise to reduce debt, and Spark downgraded earnings. Ingenia Communities and Worley both performed well for the funds on strong earnings reports and better than expected forward earnings guidance. Pleasingly for the diversified funds the defensive section of the portfolio performed well in the ‘risk-off’ environment of the second half of the quarter. The cash, local, and global bond funds all outperformed, or were in line with, their respective benchmarks. The Global Bonds Fund’s outperformance was driven by GSAM’s country and duration strategies, while their cross-sector strategy detracted from performance. The overweight to Swedish rates versus an underweight Japanese rates added value as Japanese rates sold off amongst stronger inflation and wage data, as well as a 25bps hike from the BoJ. In Sweden, the Riksbank cut rates and the heightened global tariff risks saw Swedish rates rally.