Our mission is to deliver consistent, positive returns with no surprises


The Nikko Asset Management fixed income team is a relative value manager that focuses on providing investors with consistent positive returns no matter the conditions.

The Nikko AM Australian Bond fund invests in a diversified portfolio of investment grade Australian fixed income assets, that aims to deliver an active return for a competitive fee.

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.

Consistent positive returns

  • Our goal is to achieve higher income than the index.
  • To capture this excess alpha, we use our proprietary system to analyse the relative value between ~3,000 Australian interest rate structures, bonds and sectors.
  • This process delivers a universe of opportunities that are interrogated by our portfolio managers who apply their investment methodology, experience and economic statistics to reinforce their conviction and identify the best returning securities – those that outperform the others.
  • Unlike traditional duration and credit spread managers, we don’t have to rely on picking market direction to capture returns. Instead, we look for the best relative value between securities and sectors that will deliver consistent positive returns for investors.

Portfolio diversification

  • Our Fund is positively correlated with equities when they are rising and negatively correlated when they are falling. This allows us to consistently deliver a positive return no matter the market conditions – offering the diversification investors expect from a fixed income investment.
  • The Fund consists primarily of Australian investment grade securities, which helps mitigate risk.

Proven track record

  • Our mission to provide a core fixed income allocation in your portfolio that provides returns with no surprises.  That‘s how we see our mission, that’s who we are.
  • We have the tools to generate alpha in all conditions because we keep our positions appropriately sized and don't focus everything on one position. Relative value helps dictate how and where we hold positions time after time.

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 70-130 securities
  • Modified duration of +/- 1.5 years
Portfolio Manager Darren Langer
Inception Date July 2000
Benchmark* Bloomberg AusBond Composite 0 + YR Index
Management Cost 0.30% p.a.
Minimum initial investment** $10,000
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 Portfolio Manager, Loans and Credit

View bios

The Lonsec Rating (assigned May 2019) presented in this document is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421445. 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 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

© 2017 Morningstar, Inc. All rights reserved. Nikko AM Australian Bond Fund received a ‘Neutral’ Morningstar Analyst Rating™ on 1 October 2017. 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. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 ("ASXO").

SQM Research is an investment research firm that undertakes research on investment products exclusively for its wholesale clients, utilising a proprietary review and star rating system. The information contained in this document attributable to SQM Research must not be used to make an investment decision. The SQM Research rating is valid at the time the report was issued. However, it may change at any time. While the information contained in the rating is believed to be reliable, its completeness and accuracy are not guaranteed. The SQM Research star rating system is of a general nature and does not take into account the particular circumstances or needs of any specific person. Only licensed financial advisers may use the SQM Research star rating system in determining whether an investment is appropriate to a person’s particular circumstances or needs. You should read the product disclosure statement and consult a licensed financial adviser before making an investment decision in relation to this investment product. SQM Research receives a fee from the Fund Manager for the research and rating of the managed investment scheme.


Nikko AM Australian Bond Fund

The Lonsec Rating (assigned 21 May 2019) 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