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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.
Nikko AM, established in 1994, manages funds for a wide range of clients including charities, corporations, local governments, and individual investors. As a New Zealand-based investment manager, it benefits from the global expertise of its parent company, Nikko Asset Management, one of Asia’s largest asset managers. Led by Stuart Williams since 2023, Nikko AM actively manages New Zealand equity and fixed income assets, partnering with Goldman Sachs, NAM Europe, and ARK for global investments. Believing in active management, they seek to uncover market opportunities.
Hear from Alan Clarke, Portfolio Manager. In this video, he explains what an average day in his job looks like and how Diversified Funds work. Alan also talks us through the investment process and details the main reasons why you should consider a Diversified Fund for your next investment.
| One month | Three months | One year | Three years (p.a) | Five years (p.a) | |
|---|---|---|---|---|---|
| Fund performance1 | -1.50% | -0.32% | 10.55% | 4.31% | 4.56% |
| Appropriate Market Index (AMI)2 | -0.48% | 0.86% | 11.64% | 6.06% | 6.19% |
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 | 11.90% |
| Infratil Limited | 1.56% |
| Contact Energy Limited | 1.35% |
| Amazon Com Inc | 1.31% |
| Microsoft Corp | 1.27% |
| Fisher & Paykel Healthcare | 1.25% |
| Kiwi Property Group Limited | 1.17% |
| Summerset Group Holdings Ltd | 1.08% |
| Goodman Property Trust | 1.07% |
| Meridian Energy Ltd NPV | 1.02% |
Commentary
As of 28 February 2025
Market Overview
Fund Commentary
Returns for Balanced Fund investors were weak in February, with the funds giving up some of the January gains.
All of the ‘growth asset classes’ (equities and listed property) were down in absolute terms for the month, with the exception of unhedged global equities which posted a small gain. In terms of relative performance the funds were behind benchmark, with Core, Concentrated and Global Equities all underperforming. WCM (‘growth’ style) has been the stand-out manager in recent times for the Global Multi-Manager Equity Fund, however they underperformed in February. AppLovin is the largest position in the WCM portfolio and the share price fell 11% on some negative reports from short-sellers. Progressive (held by Royal London and Nikko-Europe), SAAB (WCM) and Yum!Brands (JPM) all posted strong gains for the month. The Concentrated and Core Equity funds underperformed the NZ equity market, driven by positions in Ryman and Spark. Ryman surprised the market with a large $1bln capital raising to reduce debt and gearing levels, while Spark was down after another weak earnings release. Overweight positions to Worley, A2 Milk and Contact Energy all added value with following solid earnings results. The domestic bond funds outperformed thanks to the long duration positioning which benefited from the fall in interest rates, while the Global Bond Fund was flat versus benchmark.