Single Sector Fund

Nikko AM Concentrated Equity Fund

About the fund

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)

5 High

Target Asset Allocation

Growth 100.00%

Find out more about the Concentrated Fund from Stuart Williams

Stuart is the former Head of Equities and current Managing Director 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. Stuart also talks us through the investment process and outlines the main reasons why you should consider the Concentrated Fund for your next investment.


As of 30 June 2024

Market Highlights

  • Global equity markets had mixed performance over the quarter with the timing of rate cuts being pushed out and bond yields moving higher negatively impacting markets, offset by earnings results.
  • The United States S&P 500 index rose 3.9%, the Japanese Nikkei 225 fell 2.0%, the UK FTSE 100 index increased 2.7%, the Australian ASX 200 index declined 1.1% and the MSCI World index ended the quarter up 3.4% (in local terms).
  • The S&P/NZX 50 index ended the quarter down 3.1%.

The largest positive contributors to the fund’s return were positions in Aristocrat Leisure (ALL), Fisher & Paykel Healthcare (FPH) and Infratil (IFT). ALL delivered a very strong result, well ahead of market expectations which saw the stock up 17.0% (in AUD). FPH rose 18.5% over the quarter after delivering a solid result and also providing strong earnings growth guidance for the year ahead. IFT performed well post its $1.15b capital raising to fund its data centre development pipeline and ended the quarter up 4.2%.

The largest negative contributors to the fund’s return were from positions in Spark (SPK), Summerset (SUM) and Arcadium Lithium (LTM). SUM fell 16.7%, mainly impacted by a seller of more than 35 million RYM shares weighing on the retirement sector stocks. SPK downgraded earnings guidance by ~4% but did maintain its dividend guidance which puts the stock on an attractive yield. The earnings downgrade led to SPK falling 12.7% over the quarter. The LTM share price has been heavily impacted by weak lithium prices and as a result LTM fell 27.3% (in AUD) over the quarter.

Portfolio changes over the quarter included adding to our position in NextDC (NXT) and IFT through their capital raisings and adding a new position in EBOS (EBO) as it was sold down due to its removal from a MSCI index. New positions were also taken in Worley (WOR) and Channel Infrastructure (CHI). The fund’s position in FPH was reduced while the Ramsay Healthcare was divested from the fund.

(Bold denotes stocks held in the portfolio).




Nikko AM Investment Scheme
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at 30 June 2024
One month Three months One year Three years (p.a) Five years (p.a)
Fund performance1 -0.46% -3.52% 3.19% -0.93% 4.23%
Appropriate Market Index (AMI)2 -1.19% -3.13% -0.83% -1.74% 2.99%
  1. Returns are before tax and after the deduction of fees and expenses and including tax credits (if any).
  2. AMI: SS&P/NZX 50 Index Gross with Imputation Credits.

5 year cumulative performance $10,000 invested

Top 10 Holdings

Security Name Percentage
Infratil Limited 12.93%
NEXTDEC Ltd 12.79%
Contact Energy Limited 12.19%
Spark New Zealand Ltd 9.26%
Aristocrat Leisure Ltd 7.23%
Summerset Group Holdings Ltd 7.13%
Ingenia Communities Group 5.69%
Mainfreight Limited 5.43%
Waypoint REIT Fully Paid Ord Units Stapled Securities 5.11%
Worley Limited 4.32%
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