Single Sector Fund

Nikko AM Global Shares Hedged 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. Currency exposure created as a consequence of global investment is hedged to the New Zealand dollar. 

 

Morningstar Bronze Rating Report 

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

Risk Indicator (volatility)

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6 Very high
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Target Asset Allocation

Growth 100.00%

Find out more about the Global Shares Hedged Fund from Iain Fulton

Iain is a Portfolio Manager within the Global Equity Team based in Edinburgh. In this video, Iain explains a bit more about the Global Shares Hedged fund, his global investment philosophy, the objectives of this portfolio. Iain also talks us through the long term focus on sustainability and the concept of future quality. Learn more about the Global Shares Hedged Fund from Iain Fulton in the video now.

Commentary

As of 31 December 2023

Market Highlights

  • The last three months of the year saw strong returns amid growing excitement that central banks will cut interest rates sooner in 2024 than previously expected.
  • The MSCI AC World Index delivered marginally above 11% (over the quarter, in USD terms).
  • The best performing sector this quarter was unsurprisingly IT, rising more than 11%, closely followed by Real Estate.
  • The worst performing sector by far was Energy.

Contributors: Hexagon AB Class B continued to outperform this quarter following its capital markets day, in which it became clear that the company’s medium-term guidance is conservative, paving the way for potential upgrades in 2024. Management delivered a clear view on the growth strategy, introduced new reporting divisions and has plans to increase communication with the market. Netflix Inc.'s third quarter results and management’s outlook were ahead of expectations amid stronger subscription gains and accelerating revenue growth. Cash generation remains strong with management now expecting USD 6.5 billion of FCF in 2023 (USD 5 billion+ prior) and lower spend on content - mid USD 13 billion (USD 15billion prior). Microsoft Corporation shares climbed following better-than-expected quarterly results, delivering strong performance in both Cloud and Professional businesses. Management is confident about the outlook on earnings and demand for AI infrastructure is already proving to be a growth tailwind.

Detractors: Rentokil Intial PLC's third quarter trading update highlighted disappointing trading with their North American business. Organic growth was only slightly below expectations; however, they have recently acquired a large US competitor, Terminix, and investors are concerned about the integration of this asset. Schlumberger N.V. underperformed over the quarter despite strong quarterly results in October. ChampionX Corporation shares underperformed over the quarter, following underwhelming quarterly results in October. However, we are encouraged to see that the Offshore and International businesses, which are central to the long-term investment thesis, remain intact.

Performance

Nikko AM Investment Scheme
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Performance

at 31 December 2023
One month Three months One year Three years (p.a) Five years (p.a)
Fund performance1 4.41% 7.82% 8.63% -0.49%
Appropriate Market Index (AMI)2 4.00% 8.93% 19.10% 4.15%
  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 139% hedged to NZD.

Cumulative Returns Since Inception, $10,000 invested

Top 10 Holdings

Security Name Percentage
Microsoft Corp 7.12%
Nvidia Corp 3.91%
Facebook Inc Com Usd Cl A 3.37%
Netflix Inc 3.14%
Compass Group Ord GBP0 1105 2.76%
Haleon Plc 2.67%
Broadcom Corp Com 2.63%
Taiwan Semicon Manufacturing Co Ltd 2.58%
Hoya Corporation Jpy 2.54%
Abbott Labs 2.51%
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