Single Sector Fund

Nikko AM Global Shares Fund

About the fund

This fund invests in a selection of companies from around the world, covering a diverse range of regions and sectors where the manager believes there is potential for quality and future value.

 

Morningstar Bronze Rating Report 

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Download Morningstar's managed investment report on the Nikko AM Global Shares Fund

 

Risk Indicator (volatility)

1
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5 High
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7

Target Asset Allocation

Equities 100.00%

Commentary

As of 31 May 2022

Market Highlights

  • May proved to be a somewhat calmer month for global equities, with the MSCI Global Equity Index barely changed over the month.
  • The best performing sector this month was (once again) Energy, as the oil price continued to rally.
  • The weakest sectors were consumer facing, with both Discretionary and Staples underperforming








 

The strategy was up 0.58% for the month, 0.75% ahead of the index. Positive contributors to fund performance over the month were AdaptHealth, Palomar and Progressive Corp. AdaptHealth shares recovered this month after the company’s quarterly results indicated there is light at the end of the tunnel on CPAP issues. The long-term growth opportunity for this business remains substantial as healthcare delivery continues to pivot from the hospital to the home. Palomar outperformed in May following strong quarterly results. Most importantly, the company’s business mix is becoming increasingly diverse. This is driving sustained high premium growth levels, margin consistency and a lower risk profile. Progressive shares rose this month, benefitting from its sensitivity to rising interest rates, via its large investment book. Additionally, recent monthly results illustrated that the company continues to see margin improvement in its personal auto business. Main detractors included Intercontinental Exchange, Box and LivaNova. Intercontinental Exchange (ICE) underperformed in May following an announcement that the company would acquire Black Knight Inc (BKI), a software, data and analytics company that serves the housing finance continuum. While the strategic rationale of the transaction has not received a lot of pushback, the purchase price, potential regulatory scrutiny and timing are key areas of investor concern. Box gave up some of the gains it made earlier in the year, a function of the broader sell-off of high-growth, technology names. Despite this weaker market sentiment, Box delivered strong quarterly results, beating consensus expectations. LivaNova underperformed despite announcing solid quarterly results, with their core epilepsy and cardiopulmonary businesses doing well. Although the updates shared by the company on their pipeline were in line with previous comments, there was probably some mild disappointment that they hadn’t achieved statistical significance at their first read outs.

Performance

Nikko AM Investment Scheme
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Performance

at 31 May 2022
One month Three months One year Three years (p.a) Five years (p.a)
Fund performance1 -1.35% -1.88% -0.33% 12.78%
Appropriate Market Index (AMI)2 -0.17% -2.17% 4.25% 11.76%
  1. Returns are before tax and after the deduction of fees and expenses and including tax credits (if any).
  2. AMI: MSCI ACWI, with net dividends reinvested unhedged in NZD.

5 year cumulative performance $10,000 invested

Top 10 Holdings

Security Name Percentage
Microsoft Corp 5.96%
Compass Group Ord GBP0 1105 3.51%
Taiwan Semicon Manufacturing Co Ltd 3.27%
Encompass Health Corp Com USD 3.06%
Coca Cola Co USD 3.06%
Danaher Corp 2.95%
Sony Corp Y50 2.90%
Carlisle Cos Inc 2.82%
Worley Limited 2.67%
Progressive Corp 2.63%

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