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 28 February 2025
Market Overview
Fund Commentary
The largest positive contributors to the fund’s relative return were overweight positions in Worley (WOR), A2 Milk (ATM) and Contact Energy (CEN). 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. 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 37.3%. 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%.
The largest negative contributors to relative return were from overweight positions in Ryman Healthcare (RYM) and Spark (SPK) and an underweight position in Fletcher Building (FBU). 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. FBU rose 18.5% following a result that was roughly in line with what the market was expecting. Investors took comfort that there wasn’t an earnings downgrade given the uncertain economic conditions and drove the stock price higher over the month.
Key portfolio changes during the month included adding to our positions in EBOS (EBO), Infratil (IFT), Kiwi Property (KPG), Mainfreight (MFT), Meridian Energy (MEL), ResMed (RMD), Stride Property (SPG) and Fisher & Paykel Healthcare (FPH). Our position in RYM was added to as part of the capital raising. Positions in ATM, Aristocrat Leisure (ALL), Auckland International Airport (AIA), CEN, Ingenia Communities (INA) and FBU 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).