Nikko AM Insights

It is well known that issues of fees, complexity and illiquidity are reasons often used to dismiss investment portfolios that include hedge fund strategies.

The short answer is: it depends on the hedge fund you are looking at, and how they’re implemented to a wider KiwiSaver portfolio.

During the late 1980s, at the height of the Bubble Economy, and at a time during which seemingly everyone wanted to emulate the Japanese economic model, we were lucky enough to have high level access to the Bank of Japan.

There has been a marked inflation of money balances in the USA and of course elsewhere within the global economy over the last 18 months that has led to a generalized inflation of household balance sheets – nominal expenditure, financial asset prices, and property prices have each inflated – in many cases proportionately.

It goes without saying that the Covid-19 Pandemic has caused – and is still causing – disruptions to people’s ability to spend and companies’ ability to produce goods and to supply services. Moreover, the Pandemic looks set to disrupt the global economy for at least another six months and most likely somewhat longer.

Privacy Policy for GoalsGetter by Nikko Asset Management New Zealand Limited (Nikko AM NZ) May 2021

We need to collect some of your personal information to provide you with the best possible service. The purpose of this policy is to give you peace of mind that we take your privacy very seriously.

We want to be clear as to what information we collect and why, and what we do with it. We also set out what your rights are below.

There are four kinds of situations in which we will collect personal information about you:

• When you visit our website via a browser,
• When you set up a goal and save the goal on GoalsGetter,
• When you invest and become a customer,
• When you have other communications with us e.g. you email us, call us with a query or if you sign up for more information through an online campaign.

The amount and nature of the information that we collect and reasons for it are different in each case.

When you visit GoalsGetter via a browser

Whenever you visit a website there’s an exchange of information between your device, your browser and the website you are visiting. When you visit our website (and many other websites) “Cookies” will be stored on your device.

What are “Cookies”

Cookies are small pieces of data stored on your device that help us to remember who you are and show you content that is relevant to your interests. Besides improving your experience, this also helps us to improve our website. Some cookies only last for a short time, while you browse web pages, some are stored longer, so we can recognise you if you return to our website.

The types of cookies we use

We use a combination of the following types of cookies:

• Necessary cookies. These cookies help with website performance, ensuring that our services function as you expect, such as accessing secure areas of the website, or navigating in or around pages. Without these cookies, the website cannot function properly.
• Analytics cookies. We use these cookies to understand how you are using our website, which in turn helps us to improve how our website is built, making it easier to find the information you are looking for.
• Functionality cookies. These cookies are used to store your preferences and enable us to personalise content for you and change how the site behaves.
• Advertising cookies. These cookies record your visit to our website, along with any immediate pages you visit and immediate links you follow out of the site. This allows any advertising displayed to be more relevant to your interests.

How to view and manage cookies

Most browsers give you tools to manage cookies to suit your needs. Some browsers allow you to manage cookies on a site-by-site basis, and some allow you to browse in a private mode which ensures cookies are deleted after you close your browser tab or window. If you choose to completely disable cookies while browsing our site, please note that some functionality may not work correctly.

When you set up an account/goal in GoalsGetter

If you want to set up a goal in GoalsGetter we ask you to provide your name, email address and password so that we can set up an account for you.

If you create an account and save a goal, we store all the inputs that go into providing that projection. This is primarily so that you can always come back, but we also use it for assurance to make sure that the digital tool and the algorithms behind it are working as they should.

In addition, once we have received your email address and you’ve gone through the process of saving a goal, our understanding will be that you’ve some interest in our products and consent to a reasonable level of communication from us. Therefore, we will send you information relating to our products or market commentary that we think you may be interested in from time to time. We may also provide information that may assist you with the practicalities of completing an application to invest.

Our aim is to provide you with quality information when it’s useful to you, not to bombard. If you wish to unsubscribe at any point you can in the correspondence that we send.

When you invest

At this point we collect the required personal information to set up your investment, which may include your ID, tax status and address.

Part of the reason for the collection of information is for the efficient and secure administration of your account, but also part of the reason is to cover off a number of legal/regulatory issues that we are required to do by law such as information for anti-money laundering purposes, *FATCA and *CRS information, and other tax information.

Once you have invested with us, our understanding will be that you are interested in our products and so we’ll use some of the information to provide you with information about other products that you may be interested in and or articles commentary etc.

If you wish to unsubscribe at any point, you can in the correspondence that we send. However, by law there is a minimum amount of regulatory information that we are required to provide you with in relation to your investment.

Other communications

Generally, we record the content of other communications that you have with us, whether by email or phone etc. This helps us do business with you in the future and also helps us ensure that we are providing our customers with quality services.

Nikko AM NZ is part of a global group of asset management companies with a head office in Japan. Because of our global nature, our business has global quality cyber security to protect your information.

Being part of a global group also means that it’ likely that parts of your information will be stored in cloud-based services or in Nikko AM group infrastructure in other countries for example much of our data is backed up in Japan. However, all the companies, which form part of the Nikko AM group subscribe to a global data protection policy that is equivalent to the European GDPR standard and IT security is overseen by global teams. We also comply with ISO 27001 (a global standard).

As financial services is a complex industry, some of your information will be held by and/or accessible by third party partners of ours or entities that we are required by law to interact with. These include, but are not limited to, professional registry service businesses to administer your holdings, professional custodians who hold your assets, statutory supervisors whose job is to uphold your interests as an investor, marketing agencies which may be international, IT support and data warehousing businesses (which may be based off shore), businesses that provide identity checks, auditors and Government agencies, such as regulators and tax authorities. We may also grant access to your financial adviser if you have instructed us to give access to your financial adviser. In every instance, we shall take steps to ensure that your information is kept safe and secure.

Marketing, customer insights and analytics

As noted above, one of Nikko AM’s objectives is to provide you with quality information when it is useful to you; whether it’s market commentary or information about our products.

Therefore, aggregated customer information may be provided to third party marketing and analytics organisations to assist us to understand preferences and to help distribute the information to you.

You can always opt out of communications if you choose to.

If you are someone other than a retail customer

Sometimes we’ll be required to collect personal information from entities that we do business with. Generally this will be to verify your authority to act or for regulatory purposes, such as anti money laundering legislation.

Generally the circumstances of collection and storage described above will apply to you, except that we will not use information that you disclose on behalf of a business to market to you in your personal capacity.

Your rights / questions and complaints

You have a right to request access to and correct personal information that we hold about you. If you wish to do this, please contact us to discuss how this should be done taking into account your circumstances and complexity of the request.

If you have a query or complaint about your personal information or this policy, please feel free to direct it to the privacy officer below.

Nikko AM NZ Privacy Officer, Level 17, Vero Centre, Auckland,1010

P O Box 3892, Shortland Street, Auckland,1140

This email address is being protected from spambots. You need JavaScript enabled to view it.

0800 303 308

If you are unsatisfied with our proposed resolution of any complaint or if we have not responded within 5 days , then you may contact the Privacy Commissioner to resolve that complaint at:

New Zealand Privacy Commissioner | Website: www.privacy.org.nz | Phone: 0800 803 909

Despite major improvements over the last two decades, some critics will always doubt the progress of economic reform in Japan.

August 2020

We've implemented specific measures in response to COVID 19, and the impact for Nikko AM NZ.

Nikko AM NZ are deemed an essential service. So rest assured we remain open for business, we have robust systems to work remotely and continue to actively manage investments on your behalf. During this time, email remains the best way to get in touch and we will be doing our best to ensure that our clients continue to receive the same high level of service and expertise as normal.

The markets are continuing to function adequately and we are not seeing any structural stress, however regular trading is being affected to varying degrees, and so for any larger trades, in particular, we ask if you can please provide as much notice as you are able as this will assist us in execution.

We will continue to monitor the situation and will respond accordingly to any changes, whilst doing all we can to keep our clients and employees safe. Please look after yourselves, your families, and your communities.

George Carter, Managing Director

This document is prepared by Nikko Asset Management Co., Ltd. and/or its affiliates (Nikko AM) and is for distribution only under such circumstances as may be permitted by applicable laws. This document does not constitute personal investment advice or a personal recommendation and it does not consider in any way the objectives, financial situation or needs of any recipients. All recipients are recommended to consult with their independent tax, financial and legal advisers prior to any investment.

This document is for information purposes only and is not intended to be an offer, or a solicitation of an offer, to buy or sell any investments or participate in any trading strategy. Moreover, the information in this document will not affect Nikko AM’s investment strategy in any way. The information and opinions in this document have been derived from or reached from sources believed in good faith to be reliable but have not been independently verified. Nikko AM makes no guarantee, representation or warranty, express or implied, and accepts no responsibility or liability for the accuracy or completeness of this document. No reliance should be placed on any assumptions, forecasts, projections, estimates or prospects contained within this document. This document should not be regarded by recipients as a substitute for the exercise of their own judgment. Opinions stated in this document may change without notice.

In any investment, past performance is neither an indication nor guarantee of future performance and a loss of capital may occur. Estimates of future performance are based on assumptions that may not be realised. Investors should be able to withstand the loss of any principal investment. The mention of individual securities, sectors, regions or countries within this document does not imply a recommendation to buy or sell.

Nikko AM accepts no liability whatsoever for any loss or damage of any kind arising out of the use of all or any part of this document, provided that nothing herein excludes or restricts any liability of Nikko AM under applicable regulatory rules or requirements.

All information contained in this document is solely for the attention and use of the intended recipients. Any use beyond that intended by Nikko AM is strictly prohibited.

Japan: The information contained in this document pertaining specifically to the investment products is not directed at persons in Japan nor is it intended for distribution to persons in Japan. Registration Number: Director of the Kanto Local Finance Bureau (Financial Instruments firms) No. 368. Member Associations: The Investment Trusts Association, Japan/Japan Investment Advisers Association.

United Kingdom and rest of Europe: This document is communicated by Nikko Asset Management Europe Ltd, which is authorised and regulated in the United Kingdom by the Financial Conduct Authority (the FCA) (FRN 122084). This document constitutes a financial promotion for the purposes of the Financial Services and Markets Act 2000 (as amended) (FSMA) and the rules of the FCA in the United Kingdom, and is directed at professional clients as defined in the FCA Handbook of Rules and Guidance.

United States: This document may not be duplicated, quoted, discussed or otherwise shared without prior consent. Any offering or distribution of a Fund in the United States may only be conducted via a licensed and registered broker-dealer or a duly qualified entity. Nikko Asset Management Americas, Inc. is a United States Registered Investment Adviser.

Singapore: This document is for information to institutional investors as defined in the Securities and Futures Act (Chapter 289), and intermediaries only. Nikko Asset Management Asia Limited (Co. Reg. No. 198202562H) is regulated by the Monetary Authority of Singapore.

Hong Kong: This document is for information to professional investors as defined in the Securities and Futures Ordinance, and intermediaries only. The contents of this document have not been reviewed by the Securities and Futures Commission or any regulatory authority in Hong Kong. Nikko Asset Management Hong Kong Limited is a licensed corporation in Hong Kong.

Australia:This document is issued in Australia by Nikko AM Limited (ABN 99 003 376 252, AFSL 237563). It is for the use of wholesale clients, researchers, licensed financial advisers and their authorised representatives only.

New Zealand:This document is issued in New Zealand by Nikko Asset Management New Zealand Limited (Company No. 606057, FSP22562). It is for the use of wholesale clients, researchers, licensed financial advisers and their authorised representatives only.

Kingdom of Bahrain: The document has not been approved by the Central Bank of Bahrain which takes no responsibility for its contents. No offer to the public to purchase the Strategy will be made in the Kingdom of Bahrain and this document is intended to be read by the addressee only and must not be passed to, issued to, or shown to the public generally.

Kuwait: This document is not for general circulation to the public in Kuwait. The Strategy has not been licensed for offering in Kuwait by the Kuwaiti Capital Markets Authority or any other relevant Kuwaiti government agency. The offering of the Strategy in Kuwait on the basis a private placement or public offering is, therefore, restricted in accordance with Decree Law No. 7 of 2010 and the bylaws thereto (as amended). No private or public offering of the Strategy is being made in Kuwait, and no agreement relating to the sale of the Strategy will be concluded in Kuwait. No marketing or solicitation or inducement activities are being used to offer or market the Strategy in Kuwait.

Kingdom of Saudi Arabia: This document is communicated by Nikko Asset Management Europe Ltd (Nikko AME), which is authorised and regulated by the Financial Services and Markets Act 2000 (as amended) (FSMA) and the rules of the Financial Conduct Authority (the FCA) in the United Kingdom (the FCA Rules). This document should not be reproduced, redistributed, or sent directly or indirectly to any other party or published in full or in part for any purpose whatsoever without a prior written permission from Nikko AME.

This document does not constitute investment advice or a personal recommendation and does not consider in any way the suitability or appropriateness of the subject matter for the individual circumstances of any recipient. In providing a person with this document, Nikko AME is not treating that person as a client for the purposes of the FCA Rules other than those relating to financial promotion and that person will not therefore benefit from any protections that would be available to such clients.

Nikko AME and its associates and/or its or their officers, directors or employees may have or have had positions or material interests, may at any time make purchases and/or sales as principal or agent, may provide or have provided corporate finance services to issuers or may provide or have provided significant advice or investment services in any investments referred to in this document or in related investments. Relevant confidential information, if any, known within any company in the Nikko AM group or Sumitomo Mitsui Trust Holdings group and not available to Nikko AME because of regulations or internal procedure is not reflected in this document. The investments mentioned in this document may not be eligible for sale in some states or countries, and they may not be suitable for all types of investors.

Oman: The information contained in this document nether constitutes a public offer of securities in the Sultanate of Oman as contemplated by the Commercial companies law of Oman (Royal decree 4/74) or the Capital Markets Law of Oman (Royal Decree80/98, nor does it constitute an offer to sell, or the solicitation of any offer to buy non-Omani securities in the Sultanate of Oman as contemplated by Article 139 of the Executive Regulations to the Capital Market law (issued by Decision No. 1/2009). This document is not intended to lead to the conclusion of any contract of whatsoever nature within the territory of the Sultanate of Oman.

Qatar (excluding QFC): The Strategies are only being offered to a limited number of investors who are willing and able to conduct an independent investigation of the risks involved in an investment in such Strategies. The document does not constitute an offer to the public and should not be reproduced, redistributed, or sent directly or indirectly to any other party or published in full or in part for any purpose whatsoever without a prior written permission from Nikko Asset Management Europe Ltd (Nikko AME). No transaction will be concluded in your jurisdiction and any inquiries regarding the Strategies should be made to Nikko AME.

United Arab Emirates (excluding DIFC): This document and the information contained herein, do not constitute, and is not intended to constitute, a public offer of securities in the United Arab Emirates and accordingly should not be construed as such. The Strategy is only being offered to a limited number of investors in the UAE who are (a) willing and able to conduct an independent investigation of the risks involved in an investment in such Strategy, and (b) upon their specific request.

The Strategy has not been approved by or licensed or registered with the UAE Central Bank, the Securities and Commodities Authority or any other relevant licensing authorities or governmental agencies in the UAE. This document is for the use of the named addressee only and should not be given or shown to any other person (other than employees, agents or consultants in connection with the addressee's consideration thereof). No transaction will be concluded in the UAE and any inquiries regarding the Strategy should be made to Nikko Asset Management Europe Ltd.

MSCI: The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. (www. msci.com).

Weekly market update from Nikko AM's Domestic Fixed Income and Domestic Equity teams.

Friday 22nd May 2020

This week we are joined by Rob Hennin, CEO, nib Insurance

Friday 15th May 2020

This week we are joined by Will Low, Investment Director, Global Equities, Nikko AM Edinburgh.

Friday 8th May 2020

This week we are joined by Rob Mann, Head of Asian Equity for Nikko AM Singapore.

Friday 1st May 2020

This week we are joined by Andrew Hunt, Global Economist. Andrew's presentation is available for download here

Read more from Andrew: Will the post Covid 19 world see inflation, deflation, or both

View previous weekly updates here

Nikko Asset Management are the Issuer. The Product Disclosure Statement is available at www.nikkoam.co.nz/invest/retail. This material is general in nature only. We recommend you speak to an independent expert before relying on it. Past Performance is not an indicator of future returns.

For any questions regarding the update, please email: This email address is being protected from spambots. You need JavaScript enabled to view it.