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 April 2025
Market Overview
Fund Commentary
The fund’s investments are largely insulated from the ‘first-degree’ impact of tariffs. But it’s the secondary impact that concerns us – implications for the US dollar, US risk premiums, and possible retaliation – in a huge geopolitical game of bluff. We are focusing on companies with the ability to raise pricing and take market share that should continue to drive outperformance, while investing in companies with strong balance sheets is also an important Future Quality pillar – and might be called into question in the coming months.
Contributors: Netflix, Inc - driven by the release of highly anticipated content such as "You: Season 5" and "Black Mirror: Season 7". The company's strategic content investments and strong viewership metrics have reinforced its market position, while a stable operating environment and increasing management confidence have helped drive the share price higher. Encompass Health Corporation reported a robust 10.6% increase in revenue and a 14.9% rise in adjusted EBITDA for Q1 2025, driven by favorable occupancy rates and strategic expansion efforts. HDFC Bank Limited posted a 6.7% year-on-year increase in net profit and a 10.3% rise in net interest income for Q4 FY25. Shares in the bank underperformed in 2024 while management executed the merger. The bank's strong financial health, efficient asset management, and stable asset quality are now being rewarded by investors looking for exposure in India.
Detractors: Bio-Techne Corporation - concerns over reduced funding from the National Institutes of Health (NIH) impacted the biotechnology sector broadly. We believe the life sciences research spending market remains an area of the highest national security, and as uncertainty clears and confidence returns, Bio-Techne's differentiated business profile will allow it to enjoy outsized organic revenue growth and margin expansion. None of this is reflected in the current valuation. Samsonite Group S.A - uncertainty impacted travel markets and discretionary spending. Ryan Specialty Holdings, Inc - soft market in the professional and executive liability insurance sector. Despite reporting strong revenue growth in 2024, the company's Q1 2025 results were impacted by higher income tax and interest expenses, which weighed on net income.