Philosophy

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.

Purpose

The Nikko AM Wholesale Conservative Fund is designed to minimise the risk of investment loss while optimising investment returns. To preserve the capital value of invested funds over the long term in real terms.

Objective

To construct a portfolio of authorised investments that achieves a return which exceeds the weighted composite bechmark return by 1.0% per annum over a rolling three period period before fees, expenses and taxes.

Benchmark

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