This fund invests in a broad selection of NZ listed companies with potential for growth of income and capital, and may also invest in some Australian shares if the portfolio managers see opportunities, as part of an actively managed portfolio.
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.
Commentary
As of 30 November 2024
Market Overview
Fund Commentary
The largest positive contributors to the fund’s relative return were underweight positions in Precinct Properties (PCT) and Goodman Property (GMT) and an overweight position in Aristocrat Leisure (ALL). Despite rates moving lower over the month and nothing particularly surprising from the property securities that announced results, the property sector was under pressure and ended the month down 1.1%. This helped our relative performance with our underweight positions in PCT and GMT down 3.0% and 0.9% respectively. ALL continued its recent strong run, up 10.8% (in AUD), helped by a solid FY24 earnings result.
The largest negative contributors to relative return were from overweight positions in Sky Network Television (SKT) and Ryman Healthcare (RYM) and an underweight position in Gentrack (GTK). SKT held its Annual Shareholder Meeting during the month where it reconfirmed its earnings and dividend guidance despite noting the challenging trading conditions due to the weak economy. SKT continues to negotiate with the New Zealand Rugby Union around renewing its content rights which may be taking longer than some would have expected. SKT drifted lower over the month, ending down 10.6%. RYM announced its half year result where they announced their cashflow positive target for the year is unlikely to be met and the target has been pushed out into next year. RYM ended the period down 6.4%. GTK announced a strong result, and a new contract win and rose 40.5%. GTK is now up more than 100% year to date.
Key portfolio changes during the month included adding to our positions in Kiwi Property (KPG), RYM, Spark (SPK) and Worley (WOR). The fund also added to its position in Channel Infrastructure (CHI) through its $50m capital raise. Positions in Ebos (EBO), Chorus (CNU), Auckland International Airport (AIA), Fletcher Building (FBU), Mercury (MCY), Ingenia Communities (INA) and Infratil (IFT) were reduced.
(Bold denotes stocks held in the portfolio).