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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 | 3.51% | -4.99% | -1.34% | 2.60% | 3.12% |
| Appropriate Market Index (AMI)2 | 4.34% | -1.24% | 5.43% | 4.01% | 3.45% |
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 |
|---|---|
| Infratil Limited | 9.94% |
| Contact Energy Limited | 9.34% |
| NEXTDEC Ltd | 9.19% |
| Summerset Group Holdings Ltd | 7.94% |
| Spark New Zealand Ltd | 7.75% |
| Worley Limited | 7.28% |
| Mainfreight Limited | 6.23% |
| Meridian Energy Ltd NPV | 6.19% |
| Aristocrat Leisure Ltd | 5.95% |
| Waypoint REIT Fully Paid Ord Units Stapled Securities | 5.49% |
Commentary
As of 31 May 2025
Market Overview
Fund Commentary
The largest positive contributors to the fund’s return were positions in Mainfreight (MFT), NextDC (NXT) and Spark (SPK). On no specific news, following a weak start to the year, down 24.5% to the end of April, MFT bounced back in May, up 26.6% over the month. The weakness in MFT’s share price had been driven by investors’ concerns around the impact tariffs would have on its business. MFT’s earnings result was better than the markets expectation and helped drive the share price up in May. NXT has performed poorly recently with the market concerned around the demand outlook for data centres. This concern was somewhat alleviated during the month after updates from several companies operating in the area indicated demand was still strong. This was further backed up by NXT who announced a material new data centre contract. NXT rose 10.8% (in AUD) over the month. SPK rose 7.2% as news articles indicated that there was interest from investors in the data centre business that SPK is looking to sell a stake in.
The largest negative contributors to the fund’s return were from Sky City Entertainment (SKC), Aristocrat Leisure (ALL) and Ryman Healthcare (RYM). While not reporting a result during the month, SKC announced a downgrade to its earnings guidance as it continues to be impacted by the weak NZ economy and increased compliance costs. SKC fell 17.4% over the month. ALL provided a disappointing earnings update for their first half year result. Some of this was due to timing of a new gaming machine release which will flow through to the second half of the financial year. After a strong performance over the last 12 months the earnings disappointment saw the stock down 6.0% (in AUD). Following its $1b capital raise in February, RYM’s share price continues to struggle. Investors were hopeful that RYM would provide a positive update on unit sales in its earnings result, unfortunately that wasn’t delivered, further, a larger-than-expected asset devaluation was delivered. This saw RYM deliver a -5.0% return over the month.
Portfolio changes over the month included adding to our positions ALL, Infratil (IFT), NXT and SPK. The funds positions in Waypoint REIT (WPR), Contact Energy (CEN) and Ingenia Communities were reduced. The funds holding in Channel Infrastructure was divested.
(Bold denotes stocks held in the portfolio).