Diversified Funds

Nikko AM Growth Fund

About the fund

This fund aims for strong investment growth over the long term, with a greater likelihood of ups and downs along the way. The fund does this by investing mostly in shares, with a  moderate exposure to other assets such as bonds
and alternatives.

Risk Indicator (volatility)

5 High

Target Asset Allocation

Growth 78.00%
Income 17.00%
Other 5.00%

Find out more about Diversified Funds from George Carter

Hear from George Carter, former Managing Director of Nikko AM. In this video, he explains what an average day in his job looks like and how Diversified Funds work. George also talks us through the investment process and details the main reasons why you should consider a Diversified Fund for your next investment.


As of 30 June 2024

Market Highlights

  • Global equity markets performed strongly for a second straight month in June, to close what began as a volatile quarter on a positive note.
  • Bond markets also posted a second straight month of gains after a difficult start to the year where interest rates moved higher as expectations for major central banks to start cutting rates were pushed back to later in 2024.
  • The main economic development data was an improvement in the inflation data indicating that disinflation is resuming its course in the US, UK, and Europe.

The Growth Fund registered a small fall in the second quarter of 2024, with relative returns behind that of the benchmark. The ARK fund was the main detractor over the quarter (-10%) but the strategy did post a solid +4.4% return in June with names including Tesla, Palantir and Roblox rallying. The Global Share Fund was slightly ahead of benchmark for the quarter. Names that have benefited from the huge amount of interest in AI infrastructure continued to do well, and the portfolios positioning in Nvidia, Taiwan Semiconductor and Broadcom benefited from these names performing strongly. Companies in the more traditional sectors of finance, Consumer and Energy were the main detractors, led by PT Bank Mandiri, Samsonite and Schlumberger. The local equity funds were weak over the quarter on an absolute basis, but pleasingly outperformed their relevant market indices. Both the NZ and global bond portfolios added value over both the month and the quarter, with 1-year numbers also comfortably ahead of benchmark. The New Zealand bond funds increased their overweight to duration as interest rates moved higher in April, and this positioning was rewarded in May and June when they fell back to near where they began. The main positive drivers of relative return for the global bond fund were country and corporate bond selection, while the overweight to US duration detracted.


Nikko AM Investment Scheme
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at 30 June 2024
One month Three months One year Three years (p.a) Five years (p.a)
Fund performance1 2.11% -0.27% 11.16% 0.35% 5.06%
Appropriate Market Index (AMI)2 1.45% 0.54% 11.49% 4.01% 7.49%
  1. Returns are before tax and after the deduction of fees and expenses and including tax credits (if any).
  2. AMI: Composite - refer to Nikko AM NZ Investment Scheme OMI.

5 year cumulative performance $10,000 invested

Top 10 Holdings

Security Name Percentage
JPM Multi Manager Alternatives X Acc NZD Hedged 4.61%
Infratil Limited 3.55%
Microsoft Corp 2.98%
Contact Energy Limited 2.82%
Nvidia Corp 2.82%
Fisher & Paykel Healthcare 2.80%
Spark New Zealand Ltd 2.46%
Amazon Com Inc 2.17%
Meta Platforms Inc 1.82%
NEXTDEC Ltd 1.74%
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