Diversified Funds

Nikko AM Balanced Fund

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About the fund

This fund aims for a steady investment return over the medium to longer term without too many ups and downs. The fund does this by investing across a range asset classes with  exposure to shares for growth complemented by exposure to bonds and alternatives to reduce volatility.

Growth Fund Strategic Asset Allocation

Risk Indicator (volatility)

1
2
3
4 Medium to High
5
6
7

Target Asset Allocation

Growth 62.00%
Income 38.00%

Find out more about the Nikko AM Balanced Fund from Alan Clarke

Hear from Alan Clarke, Portfolio Manager. In this video, he explains what an average day in his job looks like and how The Nikko AM Balanced Fund works. 

Commentary

As of 30 June 2025

Market Overview

  • June was another strong month for global equities as the remarkable rally from the early April “Liberation Day” sell-off continued despite escalating conflict in the Middle East.
  • Global bonds (hedged to NZD) and NZ Bonds both posted a solid gain in June to round out a return of 1.3% and 1.4% respectively for the quarter.
  • The MSCI ACWI (NZD Hedged) was up 3.8% for June, and up 9.2% for the quarter. The Kiwi was stronger versus the US Dollar and most of the other major currencies over the month and the quarter.
  • The US Federal Reserve (Fed) remained in ‘wait-and-see’ mode over the quarter in keeping rates at 4.25-4.50% following their May and June meetings.

Fund Commentary

 

The Balanced Fund posted a strong gain over both June and the second quarter of 2025, ahead of the return of the benchmark in both cases. Pleasingly, relative performance was strong across all the key asset classes, highlighting the diversification the fund has to a range of different active investment strategies. Global equities were the standout asset class over the quarter, and local property also performed very well. Local equities lagged their global counterparts but posted solid gains, and both global and local bond markets delivered positive returns. The Multi-Manager Global Equity Fund outperformed the global benchmark, with the two ‘growth’ style managers (WCM and Nikko-Europe) outperforming strongly to more than make up for weakness from the two ‘core’ managers (Royal London and JPM AM). WCM outperformed the benchmark by more than 7%, with RobinHood Markets, Applovin, Siemens Energy, and SAAB the top contributors. Closer to home the positions that added the most value in Australasian equites were NextDC, Sky TV and Spark, and Goodman group from the listed property allocation. The Global Bond Fund’s outperformance was driven by GSAM’s duration, cross-sector and security selection in corporate bonds. In the local bond allocation, outperformance was driven by the longer duration position as well as the recovery in credit margins post the early April volatility that initially led to some spread widening.

Performance

Nikko AM Investment Scheme
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Performance

at 30 June 2025
One month Three months One year Three years (p.a) Five years (p.a)
Fund performance1 1.87% 4.13% 9.24% 7.85% 5.05%
Appropriate Market Index (AMI)2 1.97% 4.00% 10.06% 9.27% 6.34%
  1. Returns are before tax and after the deduction of fees and expenses and including tax credits (if any).
  2. AMI: Composite - refer to Nikko AM NZ Investment Scheme OMI.

5 year cumulative performance $10,000 invested

Top 10 Holdings

Security Name Percentage
Jpm Global Select Equity X Acc Usd 12.78%
Microsoft Corp 1.72%
Infratil Limited 1.66%
Amazon Com Inc 1.43%
Fisher & Paykel Healthcare 1.43%
Contact Energy Limited 1.33%
Nvidia Corp 1.30%
Kiwi Property Group Limited 1.23%
Spark New Zealand Ltd 1.15%
Meridian Energy Ltd NPV 1.14%
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