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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 | 1.43% | 2.18% | 12.63% | 4.41% | 4.49% |
| Appropriate Market Index (AMI)2 | -0.88% | 2.90% | 10.30% | 3.86% | 2.86% |
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 |
|---|---|
| Contact Energy Limited | 10.03% |
| NEXTDEC Ltd | 9.34% |
| Infratil Limited | 8.80% |
| Summerset Group Holdings Ltd | 8.16% |
| Worley Limited | 7.78% |
| Spark New Zealand Ltd | 7.47% |
| Ingenia Communities Group | 7.23% |
| Aristocrat Leisure Ltd | 6.19% |
| Waypoint REIT Fully Paid Ord Units Stapled Securities | 5.67% |
| Arcadium Lithium Cdi Defeered | 5.41% |
Commentary
As of 31 January 2025
Market Overview
Fund Commentary
The largest positive contributors to the fund’s return were positions in Ingenia Communities (INA), Arcadium Lithium (LTM) and Aristocrat Leisure (ALL). Following a weak performance in December, INA had a very strong month in January after upgrading its earnings guidance. INA rose 25.6% (in AUD) over the month. LTM continues to move higher as it meets further requirements for the takeover by Rio Tinto (RIO). Following shareholder approval in December, LTM / RIO received US regulatory approval in January. LTM rose 12.3% (in AUD) in January. On no specific news, ALL continued its excellent recent performance with another 10.6% (in AUD) return over January.
The largest negative contributors to the fund’s return were from positions Infratil (IFT), Ryman Healthcare (RYM) and Contact Energy (CEN). Following a strong run over the last 12 months, IFT gave up some gains as it was impacted by investors nervousness around what impact DeepSeek would have on datacentre demand. IFT fell 11.0% over the month. After a strong December quarter, CEN gave up some of the gains, falling 2.1% while RYM continues to be volatile and traded down 7.4% on no specific news.
Portfolio changes over the month included adding to our positions in CEN, IFT, Merdian Energy (MEL) and RYM. The funds positions in ALL, INA and Worly were reduced.
(Bold denotes stocks held in the portfolio).