This fund invests in a broad selection of NZ listed companies with potential for growth of income and capital, and may also invest in some Australian shares if the portfolio managers see opportunities, as part of an actively managed portfolio.
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.
Commentary
As of 31 May 2025
Market Overview
Fund Commentary
The largest positive contributors to the fund’s relative return were overweight positions in Mainfreight (MFT), Channel Infrastructure (CHI) and Sky Network Television (SKT). 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. At its Annual Shareholder Meeting CHI announced they were increasing their payout ratio going forward which will see increased dividends to shareholders. This increased dividend outlook resulted in CHI increasing by 12.1% over the month. On no specific news, SKT rose 8.9% over the period.
The largest negative contributors to relative return were from overweight positions in Ryman Healthcare (RYM), Sky City Entertainment (SKC) and Serko (SKO). 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. 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. While SKO reiterated its medium-term revenue aspiration of $250m by 2030, its earnings result for this period disappointed along with its guidance for the next financial year. This resulted in SKO falling 16.7% in May.
Key portfolio changes during the month included adding to our positions in Aristocrat Leisure (ALL), EBOS (EBO), Kiwi Property (KPG), and Spark (SPK). Positions in ResMed (RMD), Contact Energy (CEN), Ingenia Communities (INA) and Waypoint REIT (WPR) were reduced. The funds holding in Heartland Bank (HGH) was divested. (Bold denotes stocks held in the portfolio).