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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
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.
| One month | Three months | One year | Three years (p.a) | Five years (p.a) | |
|---|---|---|---|---|---|
| Fund performance1 | -0.94% | 2.34% | 10.04% | 4.42% | 3.29% |
| Appropriate Market Index (AMI)2 | -0.88% | 2.90% | 10.30% | 3.86% | 2.86% |
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 | 15.95% |
| Auckland International Airport Ltd | 10.57% |
| Infratil Limited | 9.79% |
| Contact Energy Limited | 6.94% |
| Meridian Energy Ltd NPV | 6.19% |
| Spark New Zealand Ltd | 5.08% |
| Mainfreight Limited | 4.82% |
| EBOS Group Limited | 4.28% |
| Summerset Group Holdings Ltd | 4.07% |
| The A2 Milk Company Limited | 3.81% |
Commentary
As of 31 January 2025
Market Overview
Fund Commentary
The largest positive contributors to the fund’s relative return were overweight positions Ingenia Communities (INA), Arcadium Lithium (LTM), and Contact Energy (CEN). INA delivered a positive 25.6% return. Following weak performance in December, INA had a very strong month in January after upgrading its earnings guidance. LTM delivered a positive 12.3% return. Final regulatory approvals are being received regarding the acquisition by Rio Tinto. SKT delivered a positive 7.7% return. Assisted by the takeover of Foxtel in Australia, a deal transacted on a much higher earnings multiple than what SKT trades on, thus supportive of a higher valuation.
The largest negative contributors to relative return were from overweight positions Infratil (IFT), Ryman Healthcare (RYM) and an underweight position in Goodman Property (GMT). IFT delivered a negative 11.0% return. Following a strong run over the last 12 months, IFT gave up some gains as it was impacted by investors nervousness around what impact DeepSeek would have on data centre demand. RYM continues to be volatile and traded down 7.4% while GMT rose 3.7%, both on no specific news.
Key portfolio changes during the month included adding to our positions in EBOS (EBO), Freightways (FRE), IFT, Kiwi Property (KPG), Mainfreight (MFT), Mercury (MCY) and RYM. Positions in Arcadium Lithium (LTM), Aristocrat Leisure (ALL), Channel Infrastructure (CHI), Fisher & Paykel Healthcare (FPH), INA, Scales (SCL) and Worley (WOR) were reduced.
(Bold denotes stocks held in the portfolio).