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This fund provides investors with concentrated exposure to New Zealand and Australian share markets from an actively managed investment portfolio of high conviction companies. The manager selects companies for investment where they have a strong view on the medium-term outlook for positive returns.
In times of high uncertainty or low conviction the fund can hold more cash than typical Australasian shares funds.
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.
Michael is the Head of Equities at Nikko AM. In this video, he explains what an average day in his job looks like, what he's trying to achieve with this portfolio, and what he sees as a good investment. Michael also talks us through the investment process and outlines the main reasons why you should consider the Concentrated Fund for your next investment.
| One month | Three months | One year | Three years (p.a) | Five years (p.a) | |
|---|---|---|---|---|---|
| Fund performance1 | -2.62% | -12.96% | -5.52% | -0.21% | 2.96% |
| Appropriate Market Index (AMI)2 | -2.99% | -8.17% | 0.29% | 0.88% | 3.25% |
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 |
|---|---|
| Contact Energy Limited | 10.44% |
| Infratil Limited | 9.78% |
| NEXTDEC Ltd | 8.13% |
| Summerset Group Holdings Ltd | 7.93% |
| Spark New Zealand Ltd | 7.13% |
| Worley Limited | 6.99% |
| Meridian Energy Ltd NPV | 6.39% |
| Ingenia Communities Group | 6.14% |
| Waypoint REIT Fully Paid Ord Units Stapled Securities | 5.96% |
| Aristocrat Leisure Ltd | 5.62% |
Commentary
As of 30 April 2025
Market Overview
Fund Commentary
The largest positive contributors to the fund’s return were positions in Waypoint REIT (WPR), ResMed (RMD) and NextDC (NXT). On no specific news, WPR rose 8.0% (in AUD). WPR was no doubt assisted by its defensive qualities in a volatile market and also by the share buyback being conducted by the company. RMD rose 4.9% (in AUD) following the announcement of a good third quarter result. RMD’s stock performance was also aided by the company saying they had received confirmation from US Customs and Border Protection that its products would be exempt from US import duties. Following a tough few months on the back of weakness in data centre related stocks, NXT bounced back and produced a 4.6% return (in AUD).
The largest negative contributors to the fund’s return were from Worley (WOR), Ryman Healthcare (RYM) and Mainfreight (MFT). WOR, who provides engineering services for large projects, suffered as investors became nervous that tariffs and market volatility would lead to its customers delaying projects. WOR ended the period down 13.8% (in AUD). RYM continues to struggle post its $1b capital raising and during April also faced pressure from a seller of a large parcel of shares. RYM ended the month down 19.9%. Tariffs have created uncertainty with regard to international trade and freight volumes and MFT has been impacted by that sentiment. The stock ended the month down 10.0%
Portfolio changes over the month included adding to our positions Contact Energy (CEN) and WOR. The funds positions in WPR and Infratil (IFT) were reduced.
(Bold denotes stocks held in the portfolio).