On this page:
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 | 1.70% | 8.14% | 3.15% | 4.85% | |
| Appropriate Market Index (AMI)2 | 1.78% | 7.83% | 4.13% | 4.56% |
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.
| One month | Three months | One year | Three years (p.a) | Five years (p.a) | |
|---|---|---|---|---|---|
| Fund performance1 | 1.67% | 8.06% | 2.99% | 4.80% | 2.76% |
| Appropriate Market Index (AMI)2 | 1.78% | 7.83% | 4.13% | 4.56% | 2.57% |
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 | 16.56% |
| Infratil Limited | 10.64% |
| Auckland International Airport Ltd | 9.52% |
| Contact Energy Limited | 6.48% |
| Meridian Energy Ltd NPV | 6.27% |
| EBOS Group Limited | 5.44% |
| Spark New Zealand Ltd | 4.93% |
| Mainfreight Limited | 4.39% |
| The A2 Milk Company Limited | 4.16% |
| Summerset Group Holdings Ltd | 3.80% |
Commentary
As of 31 July 2025
The largest positive contributors to the fund’s relative return were overweight positions in Infratil (IFT), Ryman Healthcare (RYM), and Kiwi Property (KPG). IFT rose 9.7% over the month, assisted by inclusion into the S&P/ASX 200 index, along with an independent valuer’s uplift in the value of its investment in CDC. RYM provided quarterly sales numbers and contracts which were better than expected and said that they expect sales to be towards the upper end of guidance. RYM ended the month up 11.6%. KPG announced that ASB had extended their lease. ASB are a large tenant for KPG, so this was a pleasing outcome. KPG gained 9.6% over the period.
The largest negative contributors to relative return were from overweight positions in Mainfreight (MFT), Meridian Energy (MEL), and Channel Infrastructure (CHI). MFT provided a disappointing first 17 weeks trading update at its Annual Shareholder Meeting. Weak margins drove profit before tax down 24% compared to the same period last year. This led to MFT falling 10.2%. MEL revealed an unexpected break fee that will reduce FY25 earnings, associated with their agreement with NZAS to shorten the demand response. In addition, there is currently heightened regulatory scrutiny over the sector given elevated electricity prices. Following a recent strong run, CHI declined 4.1%. While the consortium looking to build a biorefinery on CHI’s land has pushed out their final investment decision until next year, the likelihood of this proceeding is still strong.
Key portfolio changes during the month included adding to our positions in Auckland International Airport (AIA), Gentrack (GTK) and Spark (SPK). Positions in A2 Milk (ATM), (CHI), Freightways (FRW), ResMed (RMD), Mercury Energy (MCY) and Sky Network Television (SKT) were reduced.
(Bold denotes stocks held in the portfolio).