Fact SheetFact Sheet

Philosophy

Nikko AM NZ applies a low-risk approach in the New Zealand fixed income sector, reflecting the conservative nature of fixed income assets.

Nikko AM NZ’s fixed income team believes that consistent and superior returns are achieved by having a diverse range of return generators, implemented in a risk-controlled and cost-effective manner. Over time each return generator is expected to add elements of incremental value, which accumulate to provide consistent and superior results.

Different market environments favour different return generators; by having a diverse range of return generators the portfolio will have a high probability of performing well under all market conditions.

Our process is a top-down analysis of medium-term economic fundamentals and seeks to capture multiple sources of value that are designed to have limited correlation. Duration management, yield curve enhancement and corporate debt management are key determinants.

Purpose

The Nikko AM Wholesale NZ 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 New Zealand dollar fixed interest markets.

Objective

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

Benchmark

Bloomberg NZBond Govt 0+ Yr Index

Distributions

March, June, September, December