Single Sector Fund

Nikko AM Balanced Fund

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 59.00%
Income 36.00%
Other 5.00%

Find out more about Diversified Funds from George Carter

George Carter is the former Managing Director of Nikko AM. In this video, he explains what an average day in his job looks like and how Diversified Funds work. George also talks us through the investment process and details the main reasons why you should consider a Diversified Fund for your next investment.

Commentary

As of 29 February 2024

Market Highlights

  • Global equity markets continued their recent run of strong performance over February.
  • Global bonds also continued their recent trend, with yields moving higher on expectations central banks will not cut rates as aggressively as markets priced in at the end of 2023.
  • The MSCI ACWI (NZD Hedged) was up 4.7% and closed at another record high, as did the leading indexes in USA, Japan and Europe.
  • The Bloomberg Global Agg Index (NZD Hedged) was down -0.7% for February, a second month of negative performance.

February fund performance was strong in terms of both absolute return and relative returns, with global share markets continuing to move higher. Global shares were the main contributor for both absolute and relative returns, as well as the ARK Disruptive Innovation strategy which was up double digits for the month. Outperformance from the global shares portfolio was driven by positive stock selection in a range of sectors including Info Tech (Nvidia), Communications Services (Meta), and Financials (Palomar and Ryan Speciality). There was some weakness from the consumer discretionary names across the portfolio, with Sony Group, Amadeus IT, Compass and Bookings.com all underperforming the broader market. The ARK Fund was up strongly over February. The top contributors include Coinbase and Robinhood. On the back of crypto asset appreciation and volatility, Coinbase reported 50% year-over-year growth in net revenue for the fourth quarter of 2023. Robinhood reported strong fourth quarter earnings ahead of Wall Street estimates. The top detractors include Roku and Teladoc after fourth-quarter earnings reports came out below expectations. Roku was also impacted by news of Walmart acquiring connected TV competitor, Vizio. The NZ equity funds within the portfolio continued their solid start for the year, outperforming the NZX50 Index. Strong performance from NextDC, Ingenia Communities and Fisher & Paykel Healthcare were key drivers. Local and global bond Funds were in line with, or slightly behind, their respective benchmarks. 

Performance

Nikko AM Investment Scheme
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Performance

at 29 February 2024
One month Three months One year Three years (p.a) Five years (p.a)
Fund performance1 1.93% 7.17% 9.72% 0.81% 4.22%
Appropriate Market Index (AMI)2 1.40% 5.65% 10.87% 3.18% 6.13%
  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 Multi Manager Alternatives X Acc NZD Hedged 4.80%
Microsoft Corp 2.51%
Nvidia Corp 2.02%
Fisher & Paykel Healthcare 1.96%
Infratil Limited 1.92%
Spark New Zealand Ltd 1.79%
NZ Government 2.75% 15/04/2037 1.76%
Contact Energy Limited 1.61%
Facebook Inc Com Usd Cl A 1.55%
Netflix Inc 1.24%
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