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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 | 2.94% | 3.76% | 2.03% | 5.18% | 3.18% |
| Appropriate Market Index (AMI)2 | 1.54% | 2.79% | 8.35% | 5.91% | 2.71% |
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 |
|---|---|
| NEXTDEC Ltd | 9.96% |
| Infratil Limited | 9.79% |
| Contact Energy Limited | 8.63% |
| Spark New Zealand Ltd | 8.44% |
| Summerset Group Holdings Ltd | 7.93% |
| Worley Limited | 7.17% |
| Meridian Energy Ltd NPV | 6.69% |
| Aristocrat Leisure Ltd | 6.09% |
| Mainfreight Limited | 5.79% |
| Ingenia Communities Group | 5.13% |
Commentary
As of 30 June 2025
Market Overview
Fund Commentary
The largest positive contributors to the fund’s return were positions in NextDC (NXT), Sky Network Television (SKT) and Spark (SPK). NXT performed poorly in the March quarter with the market concerned around the demand outlook for data centres. This concern was somewhat alleviated during the June quarter 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 28.2% (in AUD) over the quarter. SKT rose 21.5% over the quarter. While no specific announcements came, it seems increasingly likely that SKT will retain the NZ Rugby rights. Given the rights expire at the end of the year, the window for another bidder turning up is tight given the time required to get broadcasting production infrastructure in place. After a terrible March quarter for SPK, the last three months has seen a steady climb in its share price. While no specific news has been announced, speculation continues around the sale of its data centre assets. SPK ended the quarter up 18.5%.
The largest negative contributors to the fund’s return were from Ryman Healthcare (RYM), Worley (WOR) and SkyCity Entertainment (SKC). 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 fall 18.8% over the quarter. 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 9.4% (in AUD). While not reporting a result during the quarter, 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 25.4% over the period.
Key portfolio changes during the quarter included adding to our positions in Aristocrat Leisure (ALL), SPK, Infratil (IFT), Mainfreight (MFT), Meridian Energy (MEL), NXT, WOR and Summerset (SUM). Positions in Contact Energy (CEN), Ingenia Communities (INA) and Waypoint REIT (WPR), and SKT were reduced. The funds position in Channel Infrastructure was divested. (Bold denotes stocks held in the portfolio).