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.
Download Morningstar's managed investment report on the Nikko AM Core Equity Fund
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.
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Commentary
As of 31 May 2022
Market Highlights
The strategy ended the month down 4.6% and 0.2% ahead of the index return. The largest positive contributors to relative return were overweight positions Pushpay Holdings (PPH), Channel Infrastructure (CHI) and Aristocrat Leisure (ALL) and an underweight (nil) position in Air New Zealand (AIR). PPH rallied ~10% during the month after two investors announced they had secured a combined stake of 20.3% and they were developing a proposal to acquire PPH’s shares via a scheme of arrangement. At its annual shareholder meeting CHI confirmed they are tracking in line with expectations on the refinery terminal conversion costs and ended the month up 3.7%. ALL announced a strong first half result, beating market expectations and launching a $500m share buyback, all of which supported the share in an otherwise negative market. Z Energy delisted from the market last month, but the payment was made during May which resulted in outperformance relative to the market which fell. AIR continues to digest its recent capital raising and fell 27.7%.
The largest negative contributors to relative return were overweight positions in Fletcher Building (FBU) and Summerset (SUM) and an underweight position in Ryman Healthcare (RYM). Despite providing a positive market update early in May, FBU fell 12.4% on negative sentiment around the housing market. SUM, also impacted by negative housing market sentiment fell 9.7%. Despite being removed from the MSCI index, RYM rose 8.6% as the market had pre-positioned itself for the event.
Key portfolio changes during the month included adding to Scales (SCL), Mainfreight (MFT), Auckland International Airport (AIA), Ramsay Healthcare (RHC), Aristocrat Leisure (ALL)d and SkyCity Entertainment (SKC). Reductions were made in Contact Energy (CEN), Meridian Energy (MEL), Ryman Healthcare (RYM) and SUM. Westpac (WBC) and ZEL were removed from the fund.
(Bold denotes stocks held in the portfolio.)