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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 | 0.55% | 5.50% | 10.76% | ||
| Appropriate Market Index (AMI)2 | 0.05% | 6.37% | 10.84% |
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 | 0.53% | 5.46% | 10.71% | -0.63% | 3.83% |
| Appropriate Market Index (AMI)2 | 0.05% | 6.37% | 10.84% | -1.37% | 3.39% |
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 | 15.71% |
| Infratil Limited | 10.24% |
| Auckland International Airport Ltd | 7.90% |
| Contact Energy Limited | 7.11% |
| Meridian Energy Ltd NPV | 6.54% |
| Spark New Zealand Ltd | 6.27% |
| EBOS Group Limited | 5.00% |
| Mainfreight Limited | 4.84% |
| The A2 Milk Company Limited | 4.48% |
| Summerset Group Holdings Ltd | 3.93% |
Commentary
As of 30 September 2024
The largest positive contributors to the fund’s relative return were overweight positions in Summerset (SUM), Resmed (RMD), and Auckland Airport (AIA). SUM delivered a positive 27.0% return. All members of the interest-rate sensitive retirement sector performed very well over the quarter driven by a takeover offer for Arvida at a 65% premium, followed by a dovish shift in stance from the Reserve Bank and subsequent OCR cut commencing the rate easing cycle. RMD delivered a positive 20.5% return. The company provided its FY24 result, which included a particularly strong profit margin, in addition to a robust outlook for FY25. RMD also soothed concerns relating to novel weight loss medications known as GLP-1s. AIA delivered a negative 1.2% return. The company conducted a $1.4 billion capital raising, the largest ever in New Zealand outside of an Initial Public Offering. The fund used the event and discounted raise price to move to an overweight position. The largest negative contributors to relative return were from overweight positions Contact (CEN), Spark (SPK), and underweight Ports of Tauranga (POT). CEN delivered a negative 5.9% return. The main driver of performance over the period was with regards to the company disappointing investors with a lower than previously expected dividend outlook for the next few years. In addition, CEN announced a takeover offer for Manawa Energy (MNW). SPK delivered a negative 23.0% return. The company surprised the market with an earnings result below the bottom-end of its guidance range. In addition, SPK is being impacted by the possibility that it will be removed from a large global index and some investors are positioning themselves ahead of this by selling the stock. POT delivered a positive 28.8% return. After a weak performance over the June quarter, the company recovered through the September quarter. Key portfolio changes during the month included establishing new positions in Kiwi Property Group (KPG), Port of Tauranga (POT), Stride Property Group (SPG), and Centuria Industrial REIT (CIP). Exiting Arvida (ARV). Adding to positions in Resmed (RMD), Precinct (PCT), and Worley (WOR). Reducing positions in Chorus (CNU), NextDC (NXT), and Mercury (MCY). (Bold denotes stocks held in the portfolio).