Morningstar upgrades Nikko AM Australian Bond Fund to Bronze


Chris Rands

Nikko Asset Management Australia (Nikko AM) has announced that it has received a Bronze Morningstar Analyst Rating™ for its Nikko AM Australian Bond Fund on 7 January 2020, upgraded from ‘Neutral’. The new rating recognises the investment capability and track record of portfolio managers, Darren Langer, Chris Rands, and team.

The Nikko AM Australian Bond Fund delivered a total net return of 5.35% p.a. over the past three years, and 7.64% p.a. in the past year outperforming the benchmark by 0.21% over three years and 0.38% over one year *.

The Fund primarily invests in a diversified portfolio of Australian bonds that aims to deliver an active return for a competitive fee. Management costs were reduced from 0.45% to 0.30% in April 2018, representing exceptional value for an actively-managed fixed income fund. The team’s multi-strategy approach has delivered top quartile performance over the past four years.

“We are proud of this achievement, which is a reflection of the team’s strength, process, and relative value approach delivering index beating performance over the past five years,” said Darren Langer, Senior Portfolio Manager, Fixed Income for Nikko AM Australia.

“The Nikko AM Australian Bond Fund’s sensible, pragmatic investment process regains our conviction. The low fee is the cherry on top, creating a compelling offering for those seeking Australian bond exposure,” said Edward Huynh, Analyst, Morningstar Global Fund Report, 7 January 2020.

*Period ended December 31, 2019. Nikko AM Australian Bond Fund total net returns are post fees, pre-tax using redemption prices and assume reinvestment of distributions. Past performance is not an indicator of future performance. As at 31 December 2020. Bloomberg AusBond Composit 0 + Yr Index.

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