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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 | -2.87% | -9.09% | -1.49% | 0.88% | |
| Appropriate Market Index (AMI)2 | -2.99% | -8.17% | 0.29% | 0.88% |
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 | -2.89% | -9.09% | -1.61% | 0.84% | 3.36% |
| Appropriate Market Index (AMI)2 | -2.99% | -8.17% | 0.29% | 0.88% | 3.25% |
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 | 16.57% |
| Infratil Limited | 10.05% |
| Auckland International Airport Ltd | 9.64% |
| Contact Energy Limited | 7.02% |
| Meridian Energy Ltd NPV | 6.42% |
| The A2 Milk Company Limited | 4.82% |
| Mainfreight Limited | 4.46% |
| EBOS Group Limited | 4.34% |
| Spark New Zealand Ltd | 4.19% |
| Summerset Group Holdings Ltd | 3.65% |
Commentary
As of 30 April 2025
Market Overview
Fund Commentary
The largest positive contributors to the fund’s relative return were overweight positions in Infratil (IFT) and ResMed (RMD) and an underweight position in Skellerup (SKL). Following a tough few months on the back of weakness in data centre related stocks, IFT bounced back and produced a 1.6% return. While not a large positive return, in the face of the NZX 50 index being down 3.0% our IFT position added value. RMD rose 4.9% (in AUD) following the announcement of a good third quarter result. RMD’s stock performance was also aided by the company saying they had received confirmation from US Customs and Border Protection that its products would be exempt from US import duties. SKL has material sales in the United States with products manufactured in China and other countries with large tariff impacts. This led to SKL falling 11.3% over the period. The largest negative contributors to relative return were from overweight positions in Ryman Healthcare (RYM) and Worley (WOR) and an underweight position in Genesis Energy (GNE). RYM continues to struggle post its $1b capital raising and during April also faced pressure from a seller of a large parcel of shares. RYM ended the month down 19.9%. WOR, who provides engineering services for large projects, suffered as investors became nervous that tariffs and market volatility would lead to its customers delaying projects. WOR ended the period down 13.8% (in AUD). With hydro lake levels low, GNE is well positioned to benefit if it remains dry through its reliable coal generated electricity generation. With this back drop, GNE produced a good return over the month, up 2.1%.
Key portfolio changes during the month included adding to our positions in Auckland International Airport (AIA), Contact Energy (CEN), Kiwi Property (KPG), Stride Property (SPG) and Fisher & Paykel Healthcare (FPH). Positions in A2 Milk (ATM), Heartland Bank (HGH) and Mercury Energy (MCY) were reduced. (Bold denotes stocks held in the portfolio).