Single Sector Fund
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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.
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.
One month | Three months | One year | Three years (p.a) | Five years (p.a) | |
---|---|---|---|---|---|
Fund performance1 | 0.08% | -6.29% | -1.16% | 5.67% | |
Appropriate Market Index (AMI)2 | 0.54% | -4.95% | 1.00% | 7.29% |
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 | 0.08% | -6.28% | -1.13% | 5.81% | |
Appropriate Market Index (AMI)2 | 0.54% | -4.95% | 1.00% | 7.29% |
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 |
---|---|
JPM Multi Manager Alternatives X Acc NZD Hedged | 10.07% |
Fisher & Paykel Healthcare | 2.47% |
Infratil Limited | 1.90% |
Microsoft Corp | 1.76% |
Spark New Zealand Ltd | 1.68% |
Contact Energy Limited | 1.64% |
NZ Govt Inflation Index Bond 20/09/25 | 1.48% |
EBOS Group Limited | 1.39% |
Fletcher Building Ltd | 1.19% |
Japan Government 110422 0.0 Gb | 1.15% |
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Commentary
As of 31 March 2022
Market Highlights
The generally strong returns from equities offset the losses in bonds, the ARK fund and the Option fund. The ARK fund has lost around a third of its value since the start of the year, and the Option Fund’s losses were due to the rapid increase in US interest rates upon which the option contracts are written. Day-to-day volatility remains elevated across all sectors, serves as a reminder that good diversification is an important aspect of portfolio construction. As we finalise this year’s strategic asset allocation review we note that the higher interest rate environment will ultimately lead to higher expected returns over time, albeit that the journey will continue to provide significant jolts both upwards and downwards especially in equity markets. We remain firmly of the view that equities will outperform bonds over the longer term and that bonds will outperform cash, but that the more defensive sectors still have a role to play in the overall portfolio.