Nikko AM International Bond Fund

The Nikko AM International Bond Fund (Fund) seeks to provide investors with competitive fixed interest returns by investing primarily in exposures to international investment-grade fixed interest securities.

Investment objective

The Fund aims to outperform the JP Morgan Global Government Bond Index (ex Australia) in Australian dollar (hedged) over any rolling three-year 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 22 years’ investment experience and a long track record in managing fixed income portfolios.

Winning
Multi-award winning team

Award Winning

The team has received numerous high profile industry awards.

Fund characteristics

  • Active, opportunistic and disciplined investment style
  • Diversified across a mix of international fixed interest assets
  • Only invests in securities rated BBB- and above
  • Exposure to securities with a Standard & Poor’s long-term credit rating below A- may not exceed 10% of the Fund
  • ‘Top-down’ value-adding process combined with ‘bottom-up’ quantitative portfolio construction and credit process
  • Country exposures and securities may be held over or underweight compared with the benchmark where favourable returns are expected
  • All investments are fully hedged back into Australian dollars
  • No leveraging of the Fund is permitted
Nikko AM International Bond Fund at a glance
Portfolio ManagerJames Alexander
Inception DateJuly 2000
BenchmarkJP Morgan Global Gov’t Bond Index (ex Australia) in $A (hedged)
Management Cost0.65% p.a.
Minimum initial investment*$25,000
Minimum additional investment*$1,000
Distribution frequency^Half yearly following 30 June and 31 December
*
Nikko Asset Management Australia Limited ABN 34 002 542 038 AFSL 229664 (Nikko AM Australia), is the Responsible Entity and issuer of units in the Fund and may accept lower amounts at any time at its discretion.
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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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