Fact SheetFact Sheet

Nikko AM NZ utilise Goldman Sachs Asset Management Australia Pty Ltd (GSAM) for the management of global fixed interest assets.

Philosophy

GSAM's investment philosophy and style aim to generate outperformance over time without being unduly exposed to one particular investment strategy or market circumstance. GSAM’s global approach enables them to capture diverse sources of excess returns and their risk management process ensures the portfolio is not dependent on any particular market inefficiency. The GSAM global fixed interest portfolio is constructed in such a way that aims, over time, to react well to different economic conditions.

GSAM's Global Fixed Income Team manages US$771bn1 of global fixed income assets and has a breadth of investment management expertise with over 290 investment professionals. The globally integrated team has independent strategy teams capturing value across top down (duration, cross sector and country) and bottom up (investment grade credit, high yield, MBS/ABS, government/agency and emerging market debt) strategies. Investment decisions are taken collectively following thorough discussion and debate.

1As at 31 March 2021

Purpose

The Nikko AM Wholesale Global Bond Fund is designed to provide investors with regular income by constructing an actively managed investment portfolio of authorised investments with the potential for capital gain from global fixed interest markets.

Objective

To construct a portfolio of authorised investments that outperform the Fund's benchmark return by 1.0% per annum over a rolling three year period before fees.

Benchmark

Bloomberg Barclays Capital Global Aggregate Index hedged into NZD

Hedging policy

Foreign currency exposures created as a consequence of capital markets investment remain hedged to NZD within an operational range of 98.5% to 101.5%.

Distributions

March, June, September, December