Managed Funds: Single Sector Fund

Nikko AM SRI Equity Fund

About the fund

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)

5 High

Target Asset Allocation

Growth 100.00%

Find out more about the Nikko AM SRI Equity Fund from Michael De Cesare

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.


As of 30 June 2024

Market Highlights

  • Global equity markets had mixed performance over the quarter with the timing of rate cuts being pushed out and bond yields moving higher negatively impacting markets, offset by earnings results.
  • The United States S&P 500 index rose 3.9%, the Japanese Nikkei 225 fell 2.0%, the UK FTSE 100 index increased 2.7%, the Australian ASX 200 index declined 1.1% and the MSCI World index ended the quarter up 3.4% (in local terms).
  • The S&P/NZX 50 index ended the quarter down 3.1%.

The largest positive contributors to the fund’s relative return were from overweight position Infratil (IFT) and underweight positions Fletcher Building (FBU) and restricted stock (nil holdings) Sky City (SKC). IFT delivered a positive 4.2% return. The stock performed well post the company’s $1.15b capital raising to fund its data centre development pipeline. FBU delivered a negative 31.1% return. The company continues to disappoint the market, announcing an earnings guidance downgrade as trading conditions continue to weaken. The largest negative contributors to relative return were from overweight positions Summerset (SUM), Sky Network Television (SKT) and Ryman Healthcare (RYM). SUM delivered a negative 16.7% return. There was optimism surrounding the NZ residential property market at the start of the calendar year however this continues to sour due to weaker than anticipated economic data, alongside higher for longer interest rates., contributing to the weak SUM stock performance. Although, also impacted by contagion from Ryman Healthcare’s earnings result. SKT delivered a negative 17.0% return. SKT has been affected by the negative sentiment surrounding consumer stocks, given a number of them have downgraded their earnings forecasts. RYM delivered a negative 21.8% return. RYM’s Chief Executive Officer unexpectedly resigned which followed an earnings downgrade announced earlier in the year. RYM’s subsequent result announcement included revelations regarding previous accounting practices which disappointed the market.

Key portfolio changes during the quarter included exiting Radius Residential Care (RAD), Michael Hill (MHJ), Freightways (FRW), and Ramsay Health Care (RHC). Establishing new positions in Heartland Group (HGH), Resmed (RMD) and Worley (WOR). Adding to positions in Mercury (MCY), EBOS (EBO), and Meridian (MEL). Reducing positions in Sky Network Television (SKT) and Ryman Healthcare (RYM).

(Bold denotes stocks held in the portfolio).


Nikko AM Investment Scheme
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at 30 June 2024
One month Three months One year Three years (p.a) Five years (p.a)
Fund performance1 -0.78% -2.28% -0.21%
Appropriate Market Index (AMI)2 -1.19% -3.13% -0.83%
  1. Returns are before tax and after the deduction of fees and expenses and including tax credits (if any).
  2. AMI: S&P/NZX 50 Index Gross with Imputation Credits.

Cumulative Returns Since Inception, $10,000 invested

Top 10 Holdings

Security Name Percentage
Fisher & Paykel Healthcare 14.11%
Infratil Limited 12.20%
Contact Energy Limited 9.20%
Auckland International Airport Ltd 9.04%
Spark New Zealand Ltd 7.23%
Meridian Energy Ltd NPV 6.93%
EBOS Group Limited 5.00%
The A2 Milk Company Limited 4.81%
Mainfreight Limited 4.11%
Mercury NZ Limited 3.89%
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