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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.
This fund provides a combination of specific exclusions and Environmental Social and Governance (ESG) integration, which considers the sustainability of companies.
The fund deliberately avoids investing in certain companies, industries, and sectors and aims to align social and personal values while still providing competitive returns.
Managed by a dedicated, institutional calibre SRI portfolio manager, the Nikko AM NZ SRI Equity Fund comprises 30-35 New Zealand and Australian companies.
Find our more about the Nikko AM SRI Equity Fund and our approach to Responsible Investing
Annual Fee 0.95%
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.
Michael is a Portfolio Manager here at Nikko AM. In this video, Michael talks about the difference between ESG and SRI and outlines what the SRI Equity Fund is trying to achieve. Michael also outlines what the Fund's portfolio consists of and describes why you should consider this fund for your next investment.
| One month | Three months | One year | Three years (p.a) | Five years (p.a) | |
|---|---|---|---|---|---|
| Fund performance1 | -3.08% | -7.28% | 0.88% | 1.37% | |
| Appropriate Market Index (AMI)2 | -2.43% | -6.18% | 2.11% | 1.27% |
AMI (appropriate market index) is a theoretical portfolio with similar underlying assets as the fund. This allows investors to see a comparison of how the value of those assets have changed in the market relative to the fund.
| One month | Three months | One year | Three years (p.a) | Five years (p.a) | |
|---|---|---|---|---|---|
| Fund performance1 | -3.05% | -7.27% | 0.76% | 1.25% | 5.64% |
| Appropriate Market Index (AMI)2 | -2.43% | -6.18% | 2.11% | 1.27% | 5.39% |
AMI (appropriate market index) is a theoretical portfolio with similar underlying assets as the fund. This allows investors to see a comparison of how the value of those assets have changed in the market relative to the fund.
| Security Name | Percentage |
|---|---|
| Fisher & Paykel Healthcare | 15.25% |
| Auckland International Airport Ltd | 10.05% |
| Infratil Limited | 9.71% |
| Contact Energy Limited | 7.16% |
| Meridian Energy Ltd NPV | 6.47% |
| Mainfreight Limited | 4.87% |
| The A2 Milk Company Limited | 4.76% |
| EBOS Group Limited | 4.68% |
| Spark New Zealand Ltd | 3.83% |
| Summerset Group Holdings Ltd | 3.77% |
Commentary
As of 31 March 2025
Market Overview
Fund Commentary
The largest positive contributors to the fund’s relative return were overweight positions in Ingenia Communities (INA), A2 Milk Company (ATM), and Worley (WOR). INA delivered a positive 19.4% return. Following weak performance in December, the company posted a solid half year result and upgraded its full-year earnings guidance. ATM delivered a positive 40.4% return. ATM provided a well-received first half result and confirmed its maiden dividend to shareholders. Furthermore, full-year guidance for revenue and margins were better than expectations leading to upgrades to earnings forecasts. WOR delivered a positive 7.1% return. Alongside a solid half year result, the company reconfirmed its full year earnings guidance which had been in doubt. In addition, announced a $500m share buyback.
The largest negative contributors to relative return were from overweight positions Ryman Healthcare (RYM), Infratil (IFT), and Spark (SPK). RYM delivered a negative 36.8% return. The company 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 had anticipated, citing challenging market conditions, heightened competition and impacts from changes to its pricing model and organisational restructure. The capital raise was at a large 29% discount to its last traded price. IFT delivered a negative 17.6% return. After several years of material outperformance against the index, the stock has been weaker year-to-date. This has largely related to negative sentiment stemming from factors outside of their control, including the market attempting to recalibrate the size of the Artificial Intelligence opportunity into something less profitable. In addition the Trump victory, could potentially lead to negative outcomes for U.S. renewable energy. SPK delivered a negative 24.8% return. The stock fell heavily following the fourth downgrade / miss in a row as revenue was challenged by the concurrent economic slowdown impacting the private sector, and rationalisation of government spend, alongside a lift in competitive intensity. Furthermore, cost out failed to materialise in the half, as investors had expected.
Key portfolio changes during the quarter included exiting Arcadium Lithium (LTM) ahead of the takeover completing in March. In addition, establishing a new position in Gentrack (GTK). Adding to positions in EBOS (EBO), Infratil (IFT), Channel Infrastructure (CHI) large insider sell-down, Kiwi Property Group (KPG), Ryman Healthcare (RYM) equity raise. Reducing positions in A2 Milk Compansy (ATM), Auckland Airport (AIA), Ingenia Communities (INA), and Restaurant Brands (RBD). (Bold denotes stocks held in the portfolio).