On this page:
This fund provides investors with concentrated exposure to New Zealand and Australian share markets from an actively managed investment portfolio of high conviction companies. The manager selects companies for investment where they have a strong view on the medium-term outlook for positive returns.
In times of high uncertainty or low conviction the fund can hold more cash than typical Australasian shares funds.
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.
Michael is the Head of Equities at Nikko AM. In this video, he explains what an average day in his job looks like, what he's trying to achieve with this portfolio, and what he sees as a good investment. Michael also talks us through the investment process and outlines the main reasons why you should consider the Concentrated Fund for your next investment.
| One month | Three months | One year | Three years (p.a) | Five years (p.a) | |
|---|---|---|---|---|---|
| Fund performance1 | -5.18% | -4.47% | 4.00% | 2.80% | 4.24% |
| Appropriate Market Index (AMI)2 | -2.98% | -3.45% | 8.14% | 2.56% | 3.04% |
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 |
|---|---|
| Infratil Limited | 9.18% |
| Contact Energy Limited | 9.12% |
| NEXTDEC Ltd | 8.99% |
| Worley Limited | 8.77% |
| Summerset Group Holdings Ltd | 8.25% |
| Spark New Zealand Ltd | 6.45% |
| Ingenia Communities Group | 6.30% |
| Waypoint REIT Fully Paid Ord Units Stapled Securities | 6.00% |
| Meridian Energy Ltd NPV | 5.92% |
| Aristocrat Leisure Ltd | 5.73% |
Commentary
As of 28 February 2025
Market Overview
Fund Commentary
The largest positive contributors to the fund’s return were positions in Worley (WOR), Contact Energy (CEN) and ResMed (RMD). WOR produced a solid earnings result but more importantly for investors was that they reconfirmed their full year earnings guidance along with announcing a $500m share buyback. WOR rose 5.3% (in AUD) over the month. CEN released its first half 2025 result during the month with little that surprised the market. The key driver of the share price movement during the period was CEN’s addition to the MSCI standard index which resulted in a lot of forced buying by funds that track the index. CEN ended the month up 1.8%. RMD was added to the portfolio during the month and by month end the stock was trading 2.0% ahead of our purchase price.
The largest negative contributors to the fund’s return were from Spark (SPK), Ryman Healthcare (RYM) and NextDC (NXT). RYM surprised the market with a large $1b capital raising to reduce debt and gearing levels. RYM also announced a trading update that was worse than the market was anticipating, citing challenging market conditions, heightened competition and impacts from changes to pricing model and organisational restructure. The capital raise was at a large 29% discount to last traded price and the stock fell 23.9%. SPK fell heavily following the fourth downgrade / miss in a row as revenue was challenged from the economic slowdown and competition along with cost out not materialising in the half as investors expected. SPK dropped 22.0% over the month. While NXT delivered a result that contained no major negatives, the stock drifted lower, down 10.2% (in AUD) over the month.
Portfolio changes over the month included adding to our positions in Infratil (IFT), Merdian Energy (MEL), Mainfreight (MFT) and Spark (SPK). Our position in RYM was added to as part of the capital raising. The funds positions in Aristocrat Leisure (ALL), Contact Energy (CEN) and Ingenia Communities (INA). The fund’s position in Arcadium Lithium was divested ahead of the takeover completing in March.
(Bold denotes stocks held in the portfolio).