The Nikko AM Europe team manages this fund, investing in a selection of around 40-50 companies from around the world, covering a diverse range of regions and sectors. The manager selects companies where they believe there is potential for quality and future value.
Currency exposure created as a consequence of investment in global shares is 100% hedged to the New Zealand dollar.
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
Contributors: NVIDIA Corporation performed well after publishing better-than-expected quarterly results in May. The company continues to see strong growth in its Data Centre Compute business as demand for AI keeps accelerating. The launch of the more powerful Blackwell chips later this year should help to sustain growth. Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC) outperformed in the quarter. Sales data illustrated that top-line performance has been tracking ahead of consensus expectations. This reconfirms the view that resilience in other regions is offsetting weakness in China and Apple’s orders at TSMC are intact. AI-driven growth is also accelerating, as TSMC adds more capacity next year. Broadcom Inc. continued to outperform on the back of strong AI-related revenues, for which the company increased the full-year outlook. Importantly, management also indicated that key non-AI networking markets, which have been a substantial headwind for the company, have bottomed.
Detractors: PT Bank Mandiri (Persero) Tbk underperformed after quarterly results in May illustrated continued strong loan growth but a smaller drop through to profits than in recent quarters, as higher funding costs squeezed net interest margins. Samsonite International S.A. saw some profit taking after quarterly results in May marginally missed investor expectations (on revenues, more than profit margins). The company cited adverse foreign exchange and a slightly weaker than expected recovery in Chinese demand. Speculative interest in the shares has also declined in recent weeks, as no formal takeover interest has emerged, after rumours earlier in the year. Schlumberger (SLB) has struggled to perform since the beginning of the quarter, when the company announced that it would acquire Champion X Corporation for a relatively full valuation. However, we see the cost and revenue synergies from the deal favourably and believe that SLB is taking advantage of a sustainable increase in opex spend over the next few years.