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 March 2025
Market Overview
Fund Commentary
Contributors: Cencora, Inc. saw strong performance in the quarter, which accelerated in March, driven by impressive fiscal results earlier in the year, the closing of the RCA acquisition, and the sale of Walgreens Boots' stake in the company. The latter had been an overhang on the stock, and hence the share transaction, along with a generally more favorable investment environment for defensive stocks, led to a strong share price performance. Sony Group Corporation continued to perform well in March, 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. Palomar Holdings, Inc., the leading provider of earthquake insurance, performed well on the back of strong 2024 results and a positive tone set by management for 2025. They also completed the acquisition of First Indemnity of America, which has supported future forecasts.
Detractors: Bio-Techne Corporation experienced a challenging quarter despite reporting solid Q2 FY2025 results, 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 is less than 5% of sales, this led to concerns that this may slow the rate of recovery in the business. Despite registering very strong bookings, Oracle Corporation’s share price has been under pressure as their Q3 revenues and margins fell slightly short of market expectations. In addition, investors have started to anticipate a more challenging spending backdrop for their client base. The fund also had negative performance from NVIDIA Corporation, Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC) and Broadcom Inc., which suffered as high beta US stocks were sold towards the end of the quarter. The market questioned the immediate returns for the AI hyperscalers and hence started to anticipate a slowdown in IT hardware spending.