Nikko AM NZ undertakes an automated rebalancing approach designed to keep the Fund close to its strategic asset allocation (SAA). Nikko AM NZ’s SAA philosophy encompasses the following attributes:

  • An appropriate long term return is sought at a risk level that is moderate.
  • Downside risk protection is more important than overall risk minimisation.
  • Mean reversion tends to occur in most asset classes over the medium term.
  • The solution is driven both by qualitative and quantitative rationales.
  • Diversification is key – both within and between asset classes. Low correlations are sought, particularly during turbulent environments.
  • Use of alternatives has long been part of the approach to reduce the reliance on traditional asset classes.


The Nikko AM Wholesale Balanced Fund is designed to provide investors with a carefully constructed balance of diversified assets in a manner that aims to both optimise investment returns and minimise the risks of investment loss, and to preserve the capital value of investing funds over the longer term in real terms.


To construct a portfolio of authorised investments that achieve a return which exceeds the weighted composite benchmark return by 1.5% per annum over a rolling three year period before fees, expenses and taxes.


Benchmark performance is calculated on a pro-rata basis against the relevant sector index.