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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 | 2.12% | 2.49% | 18.03% | ||
| Appropriate Market Index (AMI)2 | 1.74% | 2.19% | 18.41% |
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 | 2.09% | 2.44% | 17.93% | 0.51% | 4.53% |
| Appropriate Market Index (AMI)2 | 1.74% | 2.19% | 18.41% | -0.36% | 4.00% |
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 31 October 2024
Market Overview
Fund Commentary
The largest positive contributors to the fund’s relative return were overweight positions in Arcadium Lithium (LTM), Ryman Healthcare (RYM) and Scales Corp (SCL). LTM delivered a positive 94.1% return. The company received a takeover bid from Rio Tinto at US$5.85 per share which the LTM board endorsed. RYM delivered a positive 15.6% return. The company continues to benefit from investors rotating into interest rate sensitive stocks. SCL delivered a positive 14.6% return. A major shareholder China Resources sold their entire position, 15% of the company. The shares rallied afterwards given the removal of the perceived overhang.
The largest negative contributors to relative return were from overweight positions NextDC (NXT), Worley (WOR), and an underweight (nil holding) position in Skellerup. NXT delivered a negative 6.2% return. The company continues to digest its $550m capital raise from September. WOR delivered a negative 5.6% return. On no specific news albeit some in the market may be weighing the implications of a Trump presidency. SKL delivered a positive 12.2% return. The company held an investor day during the month.
Key portfolio changes during the month included establishing a new position in Scales Corp (SCL). Adding to positions in Freightways (FRW), Stride (SPG), Kiwi Property Group (KPG). Reducing positions in Arcadium (LTM), Resmed (RMD), and Chorus (CNU).
(Bold denotes stocks held in the portfolio).