Managed Funds: Single Sector Fund
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This fund invests in a broad selection of NZ listed companies with potential for growth of income and capital, and may also invest in some Australian shares if the portfolio managers see opportunities, as part of an actively managed portfolio.
This fund provides a combination of specific exclusions and Environmental Social and Governance (ESG) integration, which considers the sustainability of companies.
The fund deliberately avoids investing in certain companies, industries, and sectors and aims to align social and personal values while still providing competitive returns.
Managed by a dedicated, institutional calibre SRI portfolio manager, the Nikko AM NZ SRI Equity Fund comprises 30-35 New Zealand and Australian companies.
Find our more about the Nikko AM SRI Equity Fund and our approach to Responsible Investing
Annual Fee 0.95%
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.
Michael is a Portfolio Manager here at Nikko AM. In this video, Michael talks about the difference between ESG and SRI and outlines what the SRI Equity Fund is trying to achieve. Michael also outlines what the Fund's portfolio consists of and describes why you should consider this fund for your next investment.
One month | Three months | One year | Three years (p.a) | Five years (p.a) | |
---|---|---|---|---|---|
Fund performance1 | 1.04% | 9.67% | 1.00% | ||
Appropriate Market Index (AMI)2 | 0.87% | 10.47% | 0.09% |
AMI (appropriate market index) is a theoretical portfolio with similar underlying assets as the fund. This allows investors to see a comparison of how the value of those assets have changed in the market relative to the fund.
One month | Three months | One year | Three years (p.a) | Five years (p.a) | |
---|---|---|---|---|---|
Fund performance1 | 1.03% | 9.67% | 1.02% | -0.96% | 6.22% |
Appropriate Market Index (AMI)2 | 0.87% | 10.47% | 0.09% | -2.53% | 6.56% |
AMI (appropriate market index) is a theoretical portfolio with similar underlying assets as the fund. This allows investors to see a comparison of how the value of those assets have changed in the market relative to the fund.
Security Name | Percentage |
---|---|
Fisher & Paykel Healthcare | 11.15% |
Infratil Limited | 10.29% |
Spark New Zealand Ltd | 10.19% |
Auckland International Airport Ltd | 9.52% |
Contact Energy Limited | 7.86% |
Meridian Energy Ltd NPV | 5.28% |
Mainfreight Limited | 4.70% |
EBOS Group Limited | 4.54% |
Ryman Healthcare Ltd | 4.53% |
Summerset Group Holdings Ltd | 4.12% |
Commentary
As of 31 January 2024
Market Highlights
The largest positive contributors to the fund’s relative return were overweight positions in Infratil (IFT) and Summerset (SUM) and an underweight position in Port of Tauranga (POT). IFT rose 5.3% following a positive revaluation of its Canberra Data Centre investment along with announcing the signing of new customer contracts that underwrite further development. SUM announced strong sales numbers of new and resale units for the last quarter of 2023. This should support a reasonable 2023 result and good momentum into 2024. POT fell 4.8% on no specific news.
The largest negative contributors to relative return were from overweight positions in Arcadium Lithium (LTM), Ryman Healthcare (RYM) and Michael Hill (MHJ). RYM fell on no specific news and ended the month down 3.4%. With the merger complete between Allkem and Livent, LTM started trading in late December and was relatively strong into the end of the year. With weak lithium prices, LTM came under pressure in January and fell 30.6% (in AUD). MHJ delivered a weak trading update and issued earnings guidance down materially on the previous comparable period. The tough retail environment along with increasing costs has led to a reasonable reduction in margins. MHJ ended the month down 10.1%
Key portfolio changes during the month included adding to our positions in A2 Milk (ATM), Fisher & Paykel Healthcare (FPH), Fletcher Building (FBU) and RYM. Positions in Contact Energy (CEN), IFT, Mainfreight (MFT), Mercury (MCY), Meridian Energy (MEL), NextDC (NXT), SUM and Spark (SPK) were reduced. (Bold denotes stocks held in the portfolio).