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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)
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.
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.
| One month | Three months | One year | Three years (p.a) | Five years (p.a) | |
|---|---|---|---|---|---|
| Fund performance1 | 3.66% | -0.54% | 9.02% | 6.02% | 5.10% |
| Appropriate Market Index (AMI)2 | 3.12% | -0.53% | 9.04% | 7.33% | 6.34% |
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 | 3.61% | -0.58% | 8.79% | 5.93% | 5.06% |
| Appropriate Market Index (AMI)2 | 3.12% | -0.53% | 9.04% | 7.33% | 6.34% |
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 |
|---|---|
| United States Treasury 030725 0.00 Gb | 1.76% |
| Infratil Limited | 1.67% |
| Microsoft Corp | 1.64% |
| Fisher & Paykel Healthcare | 1.46% |
| Contact Energy Limited | 1.41% |
| Amazon Com Inc | 1.39% |
| Kiwi Property Group Limited | 1.25% |
| Nvidia Corp | 1.15% |
| Goodman Property Trust | 1.11% |
| Meridian Energy Ltd NPV | 1.06% |
Commentary
As of 31 May 2025
Market Overview
Fund Commentary
Returns for Balanced Fund investors were strong in May, with fund performance now up high-single digits on a rolling 1 year basis.All of the ‘growth asset classes’ (equities and listed property) posted strong absolute returns over the month, with the Global Equity Fund (Hedged and Unhedged) significantly ahead of benchmark in relative terms. Bond funds fell slightly, and were mostly in line with their respective benchmarks. Both the global equity ‘growth’ style managers (WCM and NAM-Europe) within the multi-manager line-up outperformed. WCM had a very strong month outperforming by more than 5% with top contributors in the technology space (AppLovin and Robinhood Markets) as well as within industrials (GE Aerospace and Siemens Energy). Across the two ‘style-neutral’ managers, JPM delivered a strong month outperforming by 2%, while Royal London lagged the benchmark slightly. Within the mega-cap names the multi-manager fund in aggregate is overweight Microsoft, Amazon and Taiwan Semiconductor and these all performed very strongly to more than offset the underweight to Tesla and Alphabet. The outperformance of the Global Bond Fund was driven by the duration (underweight Japanese bonds), swaps and cross sector strategies (predominantly securitised assets). The standout names within the local equity portfolios included Mainfreight who delivered a better-than-expected earnings report as well as the easing in global tariff tensions. NextDC also did well on the back of strong client demand and the announcement of a material new data centre contract.