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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% | 3.22% | 21.05% | 0.37% | 6.27% |
| Appropriate Market Index (AMI)2 | 1.74% | 2.19% | 18.41% | -0.36% | 4.00% |
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 | 11.21% |
| NEXTDEC Ltd | 10.18% |
| Contact Energy Limited | 9.76% |
| Summerset Group Holdings Ltd | 7.96% |
| Worley Limited | 6.89% |
| Ingenia Communities Group | 6.02% |
| Aristocrat Leisure Ltd | 5.62% |
| Waypoint REIT Fully Paid Ord Units Stapled Securities | 5.44% |
| Spark New Zealand Ltd | 5.29% |
| Ryman Healthcare Ltd | 4.78% |
Commentary
As of 31 October 2024
Market Overview
Fund Commentary
The largest positive contributors to the fund’s return were positions in Arcadium Lithium (LTM), Ryman Healthcare (RYM) and Contact Energy (CEN). During the month LTM received a takeover bid from Rio Tinto at US$5.85 per share which the LTM board has endorsed. On the back of this, LTM rose 94.1% (in AUD) over the month. RYM rose 15.6% over the period as it continues to benefit from investors rotating into interest rate sensitive stocks. After several months of relatively weak performance, CEN rose 5.1% on no specific news.
The largest negative contributors to the fund’s return were from positions in NextDC (NXT), Worley (WOR) and Waypoint REIT (WPR). NXT fell 6.2% (in AUD) as it continues to digest its $550m capital raise from September while WOR gave up 5.6% (in AUD) on no specific news. After a strong September quarter where WPR returned 23.6%, WPR fell 5.7% in October on no specific news.
Portfolio changes over the month included adding to our positions in WOR, Infratil (IFT), Ingenia Communities (INA), Meridian Energy (MEL), NXT and WPR. The funds position in Summerset (SUM) was reduced while the position in Auckland International Airport (AIA) was exited.
(Bold denotes stocks held in the portfolio).