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.
Commentary
As of 31 March 2024
Market Highlights
The largest positive contributors to the fund’s relative return were overweight positions in NextDC (NXT) and Ingenia Communities (INA) and Contact Energy (CEN). NXT jumped 29.6% (in AUD) after announcing a good result but more importantly outlining a strong demand outlook driven by cloud and Artificial Intelligence data storage requirements. INA reported a strong result for the first half of its financial year and ended the quarter 18.8% (in AUD) higher. CEN rose steadily over the quarter assisted by a solid earnings result and late in the quarter announcing that its geothermal development could be online earlier than its previous update. CEN was up 10.5% over the quarter.
The largest negative contributors to relative return were from overweight positions in Arcadium Lithium (LTM) and Ryman Healthcare (RYM) and an underweight position in Gentrack (GTK). With the merger complete between Allkem and Livent, LTM started trading in late December and was relatively strong into the end of the year. With weak lithium prices, LTM came under pressure and fell 39.5% (in AUD). RYM announced a downgrade to their guidance for the period ending March with new unit sales in several villages running behind expectations. The issue is put down to not having the amenities that come along with the main building not being available, which slows sales. There was heavy offshore selling and RYM ended the quarter down 22.9%. GTK announced an investment in an Australian based technology company and energy retailer which resulted in investors pushing the stock up 34.4% over the quarter.
Key portfolio changes during the quarter included adding to our positions in Auckland International Airport (AIA), A2 Milk (ATM), Channel Infrastructure (CHI) and RYM. A new position in Precinct Properties was established via the selldown from a large holder who exited their position. Positions in NXT, Fletcher Building (FBU) and Fisher & Paykel Healthcare (FPH) were reduced.
(Bold denotes stocks held in the portfolio).