Nikko AM Australian Share Concentrated Fund LT

The Nikko AM Australian Share Concentrated Fund LT is a highly concentrated Australian share portfolio, investing in 15-25 stocks. It is designed to provide a total return, with a bias towards income.

This Fund is likely to participate in off-market share buy-backs and may be suitable for low tax-paying investors. Investors not interested in participating in off-market share buy-backs may wish to consider the Nikko AM Australian Share Concentrated Fund+. Both funds are managed using the same investment process and strategy and by the same portfolio managers, the only difference between the two is the participation in off-market share buy-backs.

Investment objective

The Fund aims to provide long-term capital growth and income by investing in a concentrated selection of shares before taking into account fees, expenses and tax. The Fund is constructed on a benchmark unaware basis,which means stock weightings in the Fund can vary considerably from the S&P/ASX 200 Index.

Over long term periods, the performance of the Fund should be compared against the S&P/ASX200 Accumulation Index. There is no guarantee that the Fund will achieve its total return objective or any other particular amount during any particular time.

Key benefits

Lower absolute volatility than the Index
Lower absolute volatility than the Index (at most stages of the economic cycle)

Low volatility

The yield bias of the Fund means the portfolio will typically hold stocks that have relatively higher earnings stability than the average, resulting in lower absolute volatility.

Good diversification benefits when blended with other styles
Good diversification benefits when blended with other styles

Diversification

The highly concentrated portfolio, which has an absolute return focus and yield bias, offers investors an additional risk and return option for their investment portfolio.

Long track record in managing share income mandates
Long track record in managing share income mandates

Record

The Australian equities team has a 15-year track record in managing share income mandates for institutional clients.

Managed by a large, experienced & stable investment team
Managed by a large, experienced & stable investment team

Experience

The 11-member Australian equities team has an average of 17 years’ industry experience and has been working together as a team for an average of 10 years.

Aligned interests
Team stability

Team stability

The majority of the Australian equities team has direct equity ownership in a 50:50 joint venture company alongside Nikko AM Limited, which helps to maintain team stability and allows investment professionals to share in the team’s business success and growth.

Fund characteristics

  • High conviction portfolio, invests in 15-25 stocks
  • Total return focus, with a yield bias
  • Targets a higher grossed up dividend yield than the market
  • Performance may vary significantly from the Index over the short term due to the portfolio being constructed on an absolute return basis
  • Typically has lower absolute volatility than the Index
  • The Fund is likely to participate in off-market share buy-backs and may be suitable for low-tax paying investors
Nikko AM Australian Share Concentrated Fund LT at a glance
Portfolio ManagersTim Johnston & Jason Kim
Inception dateMay 2013
BenchmarkS&P/ASX 200 Accumulation Index
Management Cost1.00% p.a.
Minimum initial investment*$100,000
Minimum additional investment*$1,000
Distribution frequency^Quarterly following 30 June, 30 September, 31 December, 31 March.
*
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 the amount of distributions.
+
The Fund was renamed Nikko AM Australian Share Concentrated Fund LT on 1 February 2017. The Fund was previously known as Nikko AM – Tyndall Australian Share Concentrated Fund LT.
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