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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 | 4.48% | -1.64% | 3.95% | 4.00% | |
| Appropriate Market Index (AMI)2 | 4.34% | -1.24% | 5.43% | 4.01% |
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 | 4.47% | -1.64% | 3.81% | 3.97% | 3.77% |
| Appropriate Market Index (AMI)2 | 4.34% | -1.24% | 5.43% | 4.01% | 3.45% |
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 | 17.12% |
| Infratil Limited | 9.84% |
| Auckland International Airport Ltd | 9.26% |
| Contact Energy Limited | 6.84% |
| Meridian Energy Ltd NPV | 6.33% |
| Mainfreight Limited | 5.51% |
| The A2 Milk Company Limited | 4.59% |
| EBOS Group Limited | 4.55% |
| Spark New Zealand Ltd | 4.47% |
| Summerset Group Holdings Ltd | 3.67% |
Commentary
As of 31 May 2025
Market Overview
Fund Commentary
The largest positive contributors to the fund’s relative return were overweight positions in Mainfreight (MFT) and Channel Infrastructure (CHI) and an underweight position in Sky City Entertainment (SKC). Following a weak start to the year, down 24.5% to the end of April, MFT bounced back in May, up 26.6% over the month. The weakness in MFT’s share price had been driven by investors concerns around the impact tariffs would have on its business. MFT’s earnings result was better than the markets expectation and helped drive the share price up in May. At its Annual Shareholder Meeting CHI announced they were increasing their payout ratio going forward which will see increased dividends to shareholders. This increased dividend outlook resulted in CHI increasing by 12.1% over the month. While not reporting a result during the month, SKC announced a downgrade to its earnings guidance as it continues to be impacted by the weak NZ economy and increased compliance costs. SKC fell 17.4% over the month.
The largest negative contributors to relative return were from overweight positions in Ryman Healthcare (RYM) and Infratil (IFT) and an underweight position in Manawa Energy (MNW). Following its $1b capital raise in February, RYM’s share price continues to struggle. Investors were hopeful that RYM would provide a positive update on unit sales in its earnings result, unfortunately that wasn’t delivered, further a larger than expected asset devaluation was delivered. This saw RYM deliver a -5.0% return over the month. After starting the month with a good share price performance, IFT pulled back following its earnings result and ended the month down 0.1%. IFT’s result itself was fine but the guidance for the year ahead disappointed the market with some of the earnings expected in the 2026 financial year coming in the 2027 financial year. Following approval from the Commerce Commission for Contact Energy’s (CEN) acquisition of MNW, MNW rose 32.0%.
Key portfolio changes during the month included adding to our positions in Freightways (FRW), EBOS (EBO), Kiwi Property (KPG), and Spark (SPK), Stride Property (SPG), Fletcher Building (FBU), Meridian Energy (MEL), ResMed (RMD) and MFT. The funds holding in Heartland Bank (HGH) was divested. (Bold denotes stocks held in the portfolio).