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 October 2024
Market Overview
Fund Commentary
The largest positive contributors to the fund’s relative return were overweight positions in Arcadium Lithium (LTM) and Ryman Healthcare (RYM) and an underweight in Gentrack (GTK). 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 a very strong run this year, GTK gave some of that up in November, falling 6.9% on no specific news.
The largest negative contributors to relative return were from overweight positions in NextDC (NXT) and Worley (WOR) and an underweight position in Freightways (FRW). 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. FRW rose 15.3% after an existing shareholder sold a $110m position that had been weighing on the stock price. FRW also benefited from the cash rate cut during the month.
Key portfolio changes during the month included adding to our positions in Fisher & Paykel Healthcare (FPH), Fletcher Building (FBU), Kiwi Property (KPG), Meridian Energy (MEL), Serko (SKO), Stride Property (SPG) and WOR. New positions were established in Scales (SCL) and FRE by way of the shareholder selldowns. Positions in Channel Infrastructure (CHI), Aristocrat Leisure (ALL), Ebos (EBO), Chorus (CNU), LTM, ResMed (RMD) and Infratil (IFT) were reduced.
(Bold denotes stocks held in the portfolio).