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 31 March 2025
Market Overview
Fund Commentary
The largest positive contributors to the fund’s relative return were overweight positions in Ingenia Communities (INA), Worley (WOR) and A2 Milk (ATM). Following a weak performance in December, INA had a very strong quarter after upgrading its earnings guidance and delivering a solid half year result. INA rose 19.4% (in AUD) over the quarter. 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 7.1% (in AUD) over the quarter. After disappointing the market at its last result, ATM produced a good result and provided guidance around revenue and margin growth better than market expectations. ATM rose 40.4%.
The largest negative contributors to relative return were from overweight positions in Ryman Healthcare (RYM), Spark (SPK) 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. The stock fell 36.8% over the period. 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 24.8% over the quarter. NXT was caught up in technology stocks being impacted by the almost overnight arrival of the Chinese developed artificial intelligence (AI) engine DeepSeek which purports to require a fraction of the cost to develop and run compared to Western AI engines. There is also nervousness from investors in the potential overbuild of data centres in certain markets which also impacted on NXT. The stock fell 25.0% (in AUD) over the quarter.
Key portfolio changes during the quarter included adding to our positions in EBOS (EBO), Infratil (IFT), Channel Infrastructure (CHI), Kiwi Property (KPG), Mainfreight (MFT), Meridian Energy (MEL), ResMed (RMD), Stride Property (SPG), Mercury (MCY), SPK, Freightways (FRW) and Fisher & Paykel Healthcare (FPH). Our position in RYM was added to as part of the capital raising. A new position was taken in Gentrack (GTK). Positions in ATM, Aristocrat Leisure (ALL), Auckland International Airport (AIA), Ingenia Communities (INA) and Restaurant Brands (RBD) were reduced. The fund’s position in Arcadium Lithium was divested ahead of the takeover completing in March. (Bold denotes stocks held in the portfolio).