Nikko AM Australian Bond Fund

The Nikko AM Australian Bond Fund (Fund) is a diversified fixed interest fund, investing in around 80-130 securities, designed to primarily provide a stable income with some potential for capital growth.

Quarterly Fund Update - Q4 2016

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

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.

Key benefits

Strength
Strong and disciplined focus on risk

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.

Strategy
Managed using a multi-strategy approach

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.

Management
Managed by a highly experienced team

Experience

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

Winning
Multi-award winning

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 80-130 securities
  • Modified duration of +/- 1.5 years
Nikko AM Australian Bond Fund at a glance
Portfolio ManagerJames Alexander
Inception DateJuly 2000
Benchmark*Bloomberg AusBond Composite 0 + YR Index
Management Cost0.45% 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.
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