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 30 June 2024
Market Highlights
The largest positive contributors to the fund’s relative return were underweight positions in Tourism Holding (THL) (nil holding) and Fletcher Building (FBU) and an overweight position in Infratil (IFT). THL fell 43.7% after downgrading earnings guidance by more than 30% due to weak vehicle sales volumes and margins. FBU continues to disappoint the market, announcing an earnings guidance downgrade as trading conditions continue to weaken. FBU ended the quarter down 31.1%. 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 relative return were from overweight positions in Sky Network Television (SKT), Summerset (SUM) and Ryman Healthcare (RYM). As a number of consumer discretionary stocks downgraded, SKT was impacted by negative sentiment and ended the quarter down 17.0%. Following an earnings downgrade earlier in the year, during the quarter RYM’s Chief Executive Officer unexpectedly resigned. While RYM delivered a result within its previously downgraded guidance some of the revelations on previous accounting disappointed the market. In addition, more than 35 million RYM shares worth ~NZ$130 million was traded, weighing on all the retirement sector stocks with some selling of these likely occurring to fund the RYM purchases. As a result, both RYM and SUM fell 21.8% and 16.7% respectively.
Key portfolio changes during the quarter included adding to our position in NextDC (NXT) and IFT through their capital raisings and EBOS (EBO) as it was sold down due to its removal from a MSCI index. We also added to our positions in Mercury (MCY) and Auckland International Airport (AIA). Positions in A2 Milk (ATM), SKT, Aristocrat Leisure (ALL), Fisher & Paykel Healthcare (FPH) and Fletcher Building (FBU) were reduced. New holdings were established in Heartland Group (HGH), Resmed (RMD) and Worley (WOR) while positions in Radius Residential Care (RAD), Precinct Properties and Ramsay Health Care (RHC) were divested.
(Bold denotes stocks held in the portfolio).