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 December 2024
The largest positive contributors to the fund’s relative return were overweight positions in Arcadium Lithium (LTM) and Contact Energy (CEN) and an underweight (nil) position in Precinct Properties (PCT). During the quarter LTM received a takeover bid from Rio Tinto at US$5.85 per share which the LTM board endorsed and was approved by shareholders. On the back of this, LTM rose 93.4% (in AUD) over the quarter. After a relatively weak September quarter, CEN bounced back in the December quarter, aided by speculation that it may be added to the MSCI World Standard index in early 2025. CEN was up 16.3% over the period. PCT, not held in the portfolio, fell 5.0%, not helped by a particularly weak last day of the year on no specific news.
The largest negative contributors to relative return were from overweight positions in NextDC (NXT), Worley (WOR) and Ingenia Communities (INA). Given the relatively weak Australian market over the quarter, Australian held stocks were generally a drag to fund performance. NXT fell 13.9% (in AUD) as it continues to digest its $550m capital raise from September while WOR gave up 7.6% (in AUD) on no specific news. Despite reaffirming guidance, INA was a casualty of the weak Australian market with the real estate sector particularly weak. INA ended the quarter down 9.0% (in AUD).
Key portfolio changes during the quarter included adding to our positions in Kiwi Property (KPG), Ryman Healthcare (RYM), Spark (SPK), Stride Property (SPG), Fletcher Building (FBU), Merdian Energy (MEL), Auckland International Airport (AIA) and Worley (WOR). The fund also added to its position in Channel Infrastructure (CHI) through its $50m capital raise. New positions were established in Scales (SCL) and Freightways (FRW) by way of the shareholder selldowns. Positions in LTM, A2 Milk (ATM), Ebos (EBO), Aristocrat Leisure (ALL), Chorus (CNU), Mercury (MCY), Ingenia Communities (INA), CEN, and ResMed (RMD) were reduced. (Bold denotes stocks held in the portfolio).