Nikko AM NZ Corporate Bond Fund

PDS

Fact Sheet

Quarterly Fund Update

Philosophy

Nikko AM NZ applies a low-risk approach in the New Zealand fixed income sector, reflecting the conservative nature of fixed income assets. All securities are rated ‘Investment Grade’ with the Fund constructed to achieve a weighted average credit rating of A (S&P rating).

Nikko AM NZ 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.

Objective

The fund aims to outperform the benchmark return by 0.70% per annum before fees, expenses and taxes over a rolling three year period.

Benchmark

Bloomberg NZBond Credit 0+ Yr Index

Distributions

March, June, September, December