Nikko AM Concentrated Equity Fund

Product Disclosure Statement

Fact Sheet

Quarterly Fund Update

Obtains investment exposure by investing in the Nikko AM Wholesale Concentrated Equity Fund

Philosophy

The Concentrated Fund aims to hold around 15 stocks, with the ability to have a significant allocation to cash if there are insufficient numbers of suitable investment ideas. The Fund can hold up to 20% in any single security.

True active management with well researched high conviction positions has consistently delivered excellent risk adjusted returns. A high conviction, fundamental investment process that aims to deliver attractive and repeatable risk adjusted returns. Our research is expected to be insightful and to generate a high level of conviction in the portfolios we construct.

Nikko AM’s fundamental research identifies mis-priced companies that offer a blend of value, sustainability and growth. Fundamental research is crucial to establish a clear level of intrinsic value versus the market. It delivers insights into the sustainability, competitive advantages and likely catalysts that must be monitored.

Objective

To construct a portfolio of permitted investments that outperform the Fund's benchmark return before fees, expenses and taxes over a rolling three year period.

Benchmark

RBNZ Official Cash Rate plus 5.0% per annum

Distributions

March, September