On this page:
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 | 2.53% | 5.28% | 16.22% | ||
| Appropriate Market Index (AMI)2 | 3.40% | 5.24% | 16.21% |
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 | 2.51% | 5.21% | 16.10% | 2.35% | 3.83% |
| Appropriate Market Index (AMI)2 | 3.40% | 5.24% | 16.21% | 1.74% | 3.68% |
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 | 15.84% |
| Infratil Limited | 10.86% |
| Auckland International Airport Ltd | 9.15% |
| Contact Energy Limited | 7.13% |
| Meridian Energy Ltd NPV | 6.11% |
| Spark New Zealand Ltd | 4.81% |
| Mainfreight Limited | 4.81% |
| EBOS Group Limited | 4.36% |
| The A2 Milk Company Limited | 4.03% |
| Summerset Group Holdings Ltd | 3.42% |
Commentary
As of 30 November 2024
Market Overview
Fund Commentary
The largest positive contributors to the fund’s relative return were underweight positions in Vital Healthcare (VHP) and Goodman Property (GMT) and an overweight position in Contact Energy (CEN). Despite rates moving lower over the month and nothing particularly surprising from the property securities that announced results, the property sector was under pressure and ended the month down 1.1%. This helped our relative performance with our underweight positions in VHP and GMT down 2.3% and 0.9% respectively. After several poor months of share price performance from June through to September, CEN added to its October bounce back by adding another 4.8% in November.
The largest negative contributors to relative return were from overweight positions in Sky Network Television (SKT) and Ryman Healthcare (RYM) and an underweight position in Gentrack (GTK). SKT held its Annual Shareholder Meeting during the month where it reconfirmed its earnings and dividend guidance despite noting the challenging trading conditions due to the weak economy. SKT continues to negotiate with the New Zealand Rugby Union around renewing its content rights which may be taking longer than some would have expected. SKT drifted lower over the month, ending down 10.6%. RYM announced its half year result where they announced their cashflow positive target for the year is unlikely to be met and the target has been pushed out into next year. RYM ended the period down 6.4%. GTK announced a strong result and a new contract win and rose 40.5%. GTK is now up more than 100% year-to-date.
Key portfolio changes during the month included adding to our positions in Arcadium Lithium (LTM), Centuria Industrial Property (CIP) Kiwi Property (KPG), Merdian Energy (MEL), SKT, RYM, Spark (SPK), Waypoint REIT (WPR) and Worley (WOR). The fund also added to its position in Channel Infrastructure (CHI) through its $50m capital raise. Positions in Ebos (EBO), Fletcher Building (FBU), Freightways (FRW), Mercury (MCY), and Ingenia Communities (INA) were reduced. (Bold denotes stocks held in the portfolio).