The Nikko AM Europe team manages this fund, investing in a selection of around 40-50 companies from around the world, covering a diverse range of regions and sectors. The manager selects companies where they believe there is potential for quality and future value.
Download Morningstar's managed investment report on the Nikko AM Global Shares Fund
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
Contributors: Sony Group Corporation had a strong February, buoyed by positive news flow and solid financial performance, particularly driven by strength in the gaming and music divisions, while management provided an upbeat outlook for 2025. Sony's innovative initiatives, such as the launch of a comprehensive blockchain-centric Web3 solution, have positioned it well in the tech space. The anticipation of new leadership with Hiroki Totoki taking over as President and CEO in April 2025 also added to the positive sentiment. Progressive Corporation reported impressive results, with net premiums written increasing by 18% year-over-year and net income surging by 59%. Despite the estimated USD43 million in losses from the Los Angeles wildfires, the company's strong financial performance and robust growth in policies in force across personal and commercial lines have driven its stock higher. The market's positive reaction to these results reflects confidence in Progressive's resilience and growth prospects. Intercontinental Exchange Inc. outperformed after posting solid numbers in February. The bar had been lowered after a disappointing Q3, specifically regarding ICE’s Mortgage Technology business, but with expectations reset, ICE is now positioned to deliver. Green shoots are forming in the mortgage market, especially on the purchase side, and ICE is spring-loaded for any form of recovery, having signed marquee lenders in the past few quarters. ICE continues to benefit from volatility in markets through its core exchange business, which helped during the month.
Detractors: Bio-Techne Corporation experienced a challenging February despite reporting solid results during the month, with a 9% increase in organic revenue and higher EPS. The initial trigger for the weakness was the announcement that the US government plans to restrict funding for the National Institutes of Health. Although this accounts for less than 5% of sales, it led to concerns that this may slow the rate of recovery in the business. Trip.com Group Ltd. delivered strong Q4 2024 financial results, with a 23% year-over-year increase in net revenue and a significant rise in net income. However, the company’s management team provided more conservative guidance compared to expectations, and downgrades in future gross margins have been forthcoming from analysts. The shares had performed well going into the results, which also influenced the scale of the selloff in the shares. Amazon.com, Inc. reported robust Q4 2024 results, with a 10% increase in net sales and significant growth in operating income. Despite these positive figures, the stock underperformed in February due to broader market sentiment and concerns about the sustainability of AI spending and subsequent returns. Growth headwinds were aplenty in February, as was the general underperformance of the Mag7 and US stocks, hence Amazon’s shares succumbed to profit-taking, which in our view is healthy over the long term.