Nikko AM Australian Share Income Fund
received a ‘Bronze’ Morningstar Analyst RatingTM
on 2 October 2018

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The Nikko AM Australian Share Income Fund invests in 40-70 stocks. It is designed to primarily provide tax-effective income and also the potential for capital growth.

Investment Objective

The Fund aims to provide a tax-effective income stream that exceeds the dividend yield of the S&P/ASX 200 Accumulation Index (grossed up for franking credits) by 2% p.a. over rolling five-year periods, before fees, expenses and tax, plus the potential for capital growth over the long term.

Income focus

The Fund has a track record of delivering an income stream in accordance with its stated investment objective over the long term. The income has been primarily derived from being fully invested in Australian shares.

Capital growth

In addition to its income focus, the Fund has a secondary objective of providing capital growth over the long term – providing an important hedge against inflation.

Tax effective

The Fund’s focus on investing in high dividend- paying shares with franking credits, as well as participating in off-market share buy-backs and minimising portfolio turnover can deliver after-tax benefits for investors.

Lower volatility

A diversified portfolio of high dividend-paying shares has helped to produce lower volatility in returns versus the S&P/ASX 200 Index over the life of the Fund.

Reduced concentration risk

The Fund is actively managed and constructed independently of an index (within specified risk parameters). This, together with its focus on total shareholder returns, not just dividend yield, across all sectors, provides an important buffer against concentration risk.

Fund characteristics

  • Income focused, with the Fund's primary objective to deliver tax effective income
  • Diversified portfolio (invests in 40-70 stocks)
  • Constructed on an absolute risk basis
  • Typically has lower volatility than the market
Portfolio Managers Malcolm Whitten & Michael Maughan
Inception Date November 2008
Benchmark S&P/ASX 200 Accumulation Index yield (grossed up for franking credits)
Management Cost 0.85% p.a.
Minimum initial investment* $10,000
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 Income Fund on 1 February 2017. The Fund was previously known as Nikko AM–Tyndall Australian Share Income Fund.

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: November 2008
* Comprises S&P/ASX 200 Accumulation Index from April 2000 and ASX All Ordinaries Accumulation Index for all prior dates.
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
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Brad Potter

Brad Potter,
Head of Australian Equities

Tim Johnston

Tim Johnston,
Deputy Head of Australian Equities

Jason Kim

Jason Kim,
Portfolio Manager & Senior Analyst

Malcolm Whitten

Malcolm Whitten,
Portfolio Manager & Senior Analyst

Michael Maughan

Michael Maughan,
Portfolio Manager & Senior Analyst

Craig Young

Craig Young,
Senior Research Analyst

James Nguyen

James Nguyen,
Portfolio Manager & Senior Analyst

Stefan Hansen

Stefan Hansen,
Senior Research Analyst

Michael Ward

Michael Ward,
Senior Research Analyst

Vincent Li

Vincent Li,
Research Associate

David Thoms

David Thoms,
Equity Dealer

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Research House Disclaimers
The Lonsec Rating (assigned November 2018) presented in this document is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445. The Rating 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). 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 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.lonsecresearch.com.au/research-solutions/our-ratings.

The Morningstar Analyst Rating™ for Nikko AM Australian Share Income Fund is ‘Bronze’ as of 27 September 2018. © 2019 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser.

The Zenith Investment Partners (“Zenith”) Australian Financial Services License No. 226872 rating (assigned June 2019), referred to in this document is limited to “General Advice” (as defined by the Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at www.zenithpartners.com.au/regulatory-guidelines-funds-research http://www.zenithpartners.com.au/RegulatoryGuidelines

Date CPU Taxable Components
2016 December 2.366100 Fund Notice
September 1.723500 Fund Notice
June 2.478100 Fund Notice
March 1.828000 Fund Notice

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

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The Nikko AM Australian Share Income Fund

Malcolm Whitten, Portfolio Manager & Senior Analyst
The Nikko AM Australian Share Income Fund balances income and growth. Learn how from co-portfolio manager Malcolm Whitten.

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