The Nikko AM Australian Bond Fund (Fund) is a diversified fixed interest fund, investing in around 90-140 securities, designed to primarily provide stable income with some potential for capital growth.

Investment Objective

The Fund aims to outperform the Bloomberg AusBond Composite 0 + YR Index over any three-year rolling period, before fees, expenses and taxes.

Strong and disciplined focus on risk

The fixed income team's chief priorities are liquidity and risk control. If a security's risk isn't adequately priced in, the team simply won't invest in it.

Managed using a multi-strategy approach

The fixed income team uses multiple strategies such as duration, curve positioning, sector rotation and credit, rather than one single strategy, allowing them to take advantage of opportunities in all parts of the fixed income market in all market conditions.

Managed by a highly experienced team

The fixed income team has an average of 23 years' investment experience and a long track record in managing fixed income portfolios.

Multi-award winning

The Fund and team have received numerous high profile industry awards.

Click here to view full list of awards

Fund characteristics

  • Active, opportunistic & disciplined investment style
  • Diversified across all Australian fixed income sectors
  • Only invests in securities rated BBB- and above
  • ‘Top-down’ value-adding process merged with ‘bottom-up’ quantitative portfolio construction and credit process
  • Typically invests in 90-140 securities
  • Modified duration of +/- 1.5 years
Portfolio Manager James Alexander
Inception Date July 2000
Benchmark* Bloomberg AusBond Composite 0 + YR Index
Management Cost 0.45% p.a.
Minimum initial investment** $20,000
Minimum additional investment** $1,000
Distribution frequency^ Quarterly following 30 September, 31 December, 31 March and 30 June

* The UBS Australia Bond Indexes have been acquired by Bloomberg, consequently from 29 September 2014 the name of the benchmark has changed from UBS Australian Composite Bond (All Maturities) Index to Bloomberg AusBond Composite 0 + YR Index.
** Nikko Asset Management Australia Limited ABN 34 002 542 038 AFSL 229664 (Nikko AM Australia), is the Responsible Entity and the 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 provide distributions, or what the amount of distributions may be.

Fund total return figures are calculated using redemption prices, net of fees, assume the reinvestment of distributions and do not take into account taxation.

For periods to {{dateFormat data.performanceDate 'j F Y'}}

Source: BNP Paribas.
Inception Date: July 2000
The value of an investment can rise and fall and past performance is not indicative of future performance. Investment in a fund is not guaranteed. The value of investments will fluctuate up and down with the assets of the fund.

View Unit Price/Performance/Distribution
View the Monthly fund update

Darren Langer

Darren Langer,
Senior Portfolio Manager

John Sorrell

John Sorrell,
Head of Credit

Chris Rands

Chris Rands,
Portfolio Manager

Leo Leslie

Leo Leslie,
Senior Credit Analyst

View bios

Research House Disclaimers
The Lonsec Rating (assigned May 2017) presented in this document is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421445. The Rating is a ‘class service’ (as defined in the Financial Advisers Act 2008 (NZ)) or is limited to ‘General Advice’ (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product(s). In New Zealand it must only be provided to ‘wholesale clients’ (as defined in the Financial Advisers Act 2008 (NZ)). Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold Nikko Asset Management Australia Limited product(s), and you should seek independent financial advice before investing in this product(s). The Rating is subject to change without notice and Lonsec assumes no obligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the product(s) using comprehensive and objective criteria. For further information regarding Lonsec’s Ratings methodology, please refer to our website at: http://www.beyond.lonsec.com.au/intelligence/lonsec-ratings

Date CPU Taxable Components
2016 December 0.126300 Fund Notice
September 0.994100 Fund Notice
June 2.033300 Fund Notice
March 0.835600 Fund Notice

The distribution amount will vary between distribution periods and is not guaranteed.

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Quarterly Fund Update - Q4 2016

James Alexander, Head of Australian Fixed Income and Co-Head of Global Fixed Income




Fixed Income Team, Philosophy, and Process

James Alexander, Head of Australian Fixed Income and Co-Head of Global Fixed Income




Constructing Optimal Portfolios

James Alexander, Head of Australian Fixed Income and Co-Head of Global Fixed Income

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