The Fund is an unregistered managed investment scheme that substantially invests in class U shares of the Nikko AM Asia Alpha Plus Fund, SP, with a small allocation to cash. Nikko Asset Management Asia Limited (Nikko AM Asia) is the investment manager of this Strategy.

Investment Objective

The Fund aims to provide equity like market returns while minimising the risk of negative returns.

Strong risk management

The Nikko AM Asia team aims to reduce risk by diversifying the strategy’s portfolio in accordance with the strategy’s investment guidelines. The team aims to select investments that offer the best compromise between risk and expected return.

More investment opportunities

The Nikko AM Asia team gives you access to investment opportunities and markets that may not be accessible to individual investors. With its experienced, passionate investment team and a strong investment process, the Nikko AM Asia team aims to identify and take advantage of market inefficiencies to generate positive total returns for investors in the strategy.

Investment professionals with global access and regional resources

The strategy is managed by Nikko AM Asia's investment professionals with broad and deep experience in Asian markets. The team has been researching and investing in Asia since the late 1990s.

Lower cost investing, aiming to generate returns

The team can usually invest at a lower cost than individual investors. From its investments, the Fund is expected to generate (but does not guarantee it will generate) dividends, interest and capital gains (as well as capital losses) for investors.

Fund characteristics

  • A combination of top-down and bottom-up approaches for optimal idea generation
  • A strong focus on risk management as part of the stock selection process
  • A proprietary valuation framework that includes risk budgeting as an integral part
  • Benchmark agnostic
  • Trading instruments include equity, fixed income, derivatives and FX
  • Monthly liquidity
  • Portfolio manager & support team located in Asia

Fund at a glance

Inception Date June 2011
Management Fee^,+ 0.5125% p.a. of the monthly net asset value of the Fund
Administration Fee^,# Up to 0.5225% p.a. of the monthly net asset value of the Fund
Performance Fee^,* 20.50%
Minimum initial investment** $100,000
Minimum additional investment** $10,000
Distribution frequency*** Annually following 30 June

^ All fees and costs include Goods and Services Tax (GST) less any reduced input tax credits (RITC). If the GST and RITC rates change, the Fund’s constitution permits the Trustee to recover any additional amount from the assets of the Fund.
+ This fee is payable to Nikko AM Australia as the Trustee, and includes investment management fee.
# This fee will cover all operating expenses including all ongoing administration, trustee fees and other fees that would normally be payable by the Fund except for transaction costs, government charges and abnormal expenses. The administration fee may reduce over time if the net asset value of the Fund increases resulting in a lower fee being required to cover these costs.
* Please refer to the Information Memorandum of the Fund for further explanation.
** Nikko Asset Management Australia Limited ABN 34 002 542 038 AFSL 229664 (Nikko AM Australia), is the Trustee and issuer of units in the Fund and may accept lower amounts at any time at its discretion.
*** Fund returns can be volatile. Nikko AM Australia does not guarantee to pay distributions, or what the amount of distributions may be.