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 September 2024
The largest positive contributors to the fund’s relative return were overweight positions in Summerset (SUM), Ryman Healthcare (RYM) and Sky Network Television (SKT). While there was news for both SUM and RYM with a result and changes to fees and development model, the driving force for the return of both stocks was the change in stance from the Reserve Bank and ultimately the OCR cut. SUM rose 27.0% while RYM rose 20.8% over the quarter. SKT delivered a credible result in light of the tough economic back drop. Importantly they maintained their target of providing a dividend of at least 30cps in 2026. SKT ended the quarter up 17.1%. The largest negative contributors to relative return were from overweight positions in Spark (SPK) and Contact Energy (CEN) and an underweight position in Port of Tauranga (POT). SPK disappointed the market by providing an earnings result below the bottom-end of their guidance range and ended the quarter down 23.0%. SPK is also being impacted by the possibility that it will be removed from a large global index and some investors are positioning themselves ahead of this by selling the stock. CEN announced a takeover offer of Manawa Energy (MNW) but the main driver of its performance over the quarter was disappointing investors with its dividend profile over the next few years. CEN ended the quarter down 5.9%. After a weak performance over the June quarter, POT recovered through the September quarter and ended up 28.8%. Key portfolio changes during the month included adding to our positions in Auckland International Airport (AIA), Fletcher Building (FBU) and NextDC (NXT) through their respective capital raisings. Other positions added to included CEN, Ingenia Communities (INA), Mainfreight (MFT), Meridian Energy (MEL), POT, Resmed (RMD), SKT and Worley (WOR). A new position was established in Kiwi Property (KPG). Positions in Channel Infrastructure (CHI), Aristocrat Leisure (ALL), Ebos (EBO), Chorus (CNU), Mercury (MCY), SPK, and Infratil (IFT) were reduced. The fund's holding in Arvidia (ARV) was divested. (Bold denotes stocks held in the portfolio).