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.
Currency exposure created as a consequence of investment in global shares is 100% hedged to the New Zealand dollar.
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 January 2025
Market Overview
Fund Commentary
Contributors: Interactive Brokers Group, Inc. saw a strong performance in January, driven by robust results and a significant increase in Daily Average Revenue Trades (DARTs), which were up 61% year-over-year. The company also reported a 30% increase in client accounts compared to the previous year. The firm's robust trading platform and competitive pricing in strong markets should help the company continue to deliver robust growth. Meta Platforms Inc. stock rose throughout January and continued to climb after it released impressive fourth-quarter results, which included a notable rise in daily active users and revenue growth that exceeded expectations. The company's strategic focus on AI innovations, particularly through its open-source Llama AI model, should continue to drive strong growth and market share gains in the advertising business. Cencora Inc. announced the closing of the RCA acquisition previously mentioned as part of their fourth quarter 2024 earnings release. As part of the announcement, Cencora increased its Fiscal Year 2025 guidance for adjusted EPS to USD15.15 - USD15.45 versus USD14.80 - USD15.10 previously. The company also highlighted strength in its U.S. Healthcare Solutions business. Given the management team's conservative nature when providing guidance, we believe there remains further upside that will be delivered throughout 2025.
Detractors: HDFC Bank Limited performance in January was underwhelming, with its stock declining by just under 6% over the month. The bank's third quarter results showed a marginal 2% year-over-year increase in net profit, which fell short of market expectations. Analysts pointed to slower credit growth and a slight decline in asset quality as contributing factors. Broadcom Inc. and NVIDIA Coroporation shares were under pressure in January following the DeepSeek release. Until now, the fortunes of AI chip providers, hyperscalers, and all those involved in building out the AI infrastructure have been heavily correlated. DeepSeek has undoubtedly questioned that correlation, as users should benefit from greater efficiency and lower costs while falling returns await the AI capex providers. There is a lot of unknown about DeepSeek, and it is very possible, and in fact likely, that their suggested greater efficiency will lead to greater AI adoption and an acceleration in demand for greater computing power. Booking Holdings Inc., the parent company of Booking.com, saw its stock decline by just under 5% in January. Despite a positive earnings outlook for the upcoming quarter, the company's stock underperformed due to broader market trends and investor concerns about the impact of economic uncertainties on travel demand. We remain confident that Booking.com will continue to gain market share and improve returns in the coming year.