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)

1
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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 29 February 2024

Market Highlights

  • Equity markets were in a good mood in February, rising over 4% during the month.
  • The composite Purchasing Managers’ Index (PMI) suggested activity continued to expand over February with the US economy adding 353,000 jobs.
  • Consumer Discretionary that was the best performing sector, closely followed by Information Technology.
  • Most commodities fell over the month, leading to underperformance for the Materials & Energy sectors.

Contributors: NVIDIA Corporation continued to outperform this month after the company published results that beat already-elevated market expectations. Management commented that AI GPU demand continues to outstrip supply and is confident in growth for the foreseeable future, confirming a more prolonged ramp for the AI ecosystem. Meta Platforms Inc. Class A shares outperformed on the back of better-than-expected quarterly results at the beginning of February. The pivot in capex instigated last year and the conscious decision to reinvest in core Facebook platforms (Reels) have increased user engagement as well as driven a sharp acceleration in advertising revenue. Samsonite International S.A. shares soared at the end of the month after the market speculated that private equity may be interested in acquiring the business, a potentially value-creative move. The company has refrained from commenting on the issue.

Detractors: Sony Group Corporation struggled to perform in February after the company published lacklustre medium-term guidance and continues to expect structural challenges in the gaming segment to dampen profit growth. The company subsequently announced that it would be laying off 900 employees in the gaming business. Amadeus IT Group SA struggled to perform ahead of its quarterly results at the end of the month as investors feared that an accelerated decline in the use of travel-booking services would challenge the outlook for the company. HDFC Bank Limited shares continued to struggle in February as concerns over short-term margins, growth and merger-related weakness dominate sentiment around the stock.

Performance

Nikko AM Investment Scheme
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Performance

at 29 February 2024
One month Three months One year Three years (p.a) Five years (p.a)
Fund performance1 5.58% 14.35% 17.03% 1.27%
Appropriate Market Index (AMI)2 4.73% 10.32% 21.96% 5.26%
  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 7.60%
Nvidia Corp 6.05%
Facebook Inc Com Usd Cl A 4.52%
Netflix Inc 3.77%
Abbott Labs 3.12%
Broadcom Corp Com 2.97%
Taiwan Semicon Manufacturing Co Ltd 2.82%
Cencora Inc Com 2.79%
Compass Group Ord GBP0 1105 2.68%
Haleon Plc 2.65%
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