Single Sector Fund

Nikko AM Conservative Fund

About the fund

This fund aims for more modest investment returns which grow steadily over time, keeping ups and downs to a minimum. The fund does this by investing mostly in bonds and cash, but also has a moderate exposure to shares.

Risk Indicator (volatility)

1
2
3 Medium
4
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7

Target Asset Allocation

Growth 23.00%
Income 77.00%

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Commentary

As of 29 February 2024

Market Highlights

  • Global equity markets continued their recent run of strong performance over February.
  • Global bonds also continued their recent trend, with yields moving higher on expectations central banks will not cut rates as aggressively as markets priced in at the end of 2023.
  • The MSCI ACWI (NZD Hedged) was up 4.7% and closed at another record high, as did the leading indexes in USA, Japan and Europe.
  • The Bloomberg Global Agg Index (NZD Hedged) was down -0.7% for February, a second month of negative performance.

February fund performance was strong in terms of both absolute return and relative returns. Global shares were the main contributor for both absolute and relative returns. Outperformance from the global shares portfolio was driven by positive stock selection in a range of sectors including Info Tech (Nvidia), Communications Services (Meta), and Financials (Palomar and Ryan Speciality). There was some weakness from the consumer discretionary names across the portfolio, with Sony Group, Amadeus IT, Compass and Bookings.com all underperforming the broader market. The NZ equity funds within the portfolio continued their solid start for the year, outperforming the NZX50 Index. Strong performance from NextDC, Ingenia Communities and Fisher & Paykel Healthcare were key drivers. Local and global bond Funds were in line with, or slightly behind, their respective benchmarks. 

Performance

Nikko AM Investment Scheme
Open Close

Performance

at 29 February 2024
One month Three months One year Three years (p.a) Five years (p.a)
Fund performance1 0.33% 3.60% 6.55% 0.39% 2.80%
Appropriate Market Index (AMI)2 0.26% 3.11% 6.77% 0.93% 3.12%
  1. Returns are before tax and after the deduction of fees and expenses and including tax credits (if any).
  2. AMI:Composite - refer to Nikko AM NZ Investment Scheme OMI

5 year cumulative performance $10,000 invested

Top 10 Holdings

Security Name Percentage
NZ Government 2.75% 15/04/2037 2.92%
NZ Government 150534 4.25 Gb 1.84%
Housing NZ 1.534% 10/09/2035 1.31%
Rabobank Nederla 160326 Frn 1.13%
Westpac New Zealand 060726 Frn 1.09%
NZ Local Govt Funding Agency 150437 2.00 GB 1.04%
Goodman Property Trust 0.94%
NZ Govt Inflation Index Bond 20/09/25 0.92%
Microsoft Corp 0.91%
Mufg Bank Ltd Auckland Branch 241126 Frn 0.90%
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