Nikko AM receives ‘Highly Recommended’ rating from Lonsec


Nikko Asset Management Australia (Nikko AM) has announced that its Nikko AM Australian Bond Fund received an upgrade to ‘Highly Recommended’ from the Lonsec Group on 16 September 2020. This comes after the Nikko AM Australian Bond Fund received a ‘Recommended’ rating from Zenith, a Morningstar Analyst Rating™ of Bronze as of 7th January 2020, and a Superior rating from SQM Research earlier this year.

The new rating recognises both the investment capability and the fact that the Fund generates risk-adjusted returns in line with relevant objectives. Over the one-year period to 31 August 2020, which included COVID-19 related market turmoil, the Fund delivered a Total Fund Return[1]of 1.82%, outperforming the benchmark by 0.20%., and since inception, has delivered a Total Fund Return[1] of 5.97%.

The Fund primarily invests in a diversified portfolio of investment grade Australian fixed income assets and aims to deliver an active return for a competitive fee. The Fund aims to outperform the Bloomberg Ausbond Composite 0+Yr Index  over any three-year rolling period, before fees, expenses and taxes.

“We are extremely proud of this achievement, which is a validation of the team’s relative value approach to Australian fixed income. Our experienced investment team has both substantial fixed income and credit experience, and utilises proprietary relative value tools that aim to deliver the best possible returns in the market,” said Darren Langer, Head of Australian Fixed Income, Nikko Asset Management Australia.

“It is wonderful for the team to be recognised with Lonsec’s highest rating and it will only further assist our strong momentum in capturing flows. The team rebuilt their process over three years ago, with a proprietary technology tool that leverages and scales the team’s intellect, generating great peer and benchmark relative outperformance,” said Rob Bluzmanis, Head of Distribution, Nikko Asset Management Australia.

“Lonsec has upgraded the Fund’s rating to ’Highly Recommended’ following its most recent review. Lonsec has increased conviction in the team who, while smaller than many peers, has evolved the process and tools to efficiently blend top-down macro, bottom-up credit with additional alpha from relative value. The outcome has been a conservative, competitively priced Australian Fixed Interest Fund which has delivered solid risk-adjusted returns relative to most peers,” according to Lonsec’s Nikko AM Australian Bond Fund client release, September 2020.


[1] Total Fund (net) returns are post fees, pre tax using redemption prices and assume reinvestment of distributions. Past performance is not an indicator of future performance. Benchmark: Bloomberg AusBond Composite 0+YR Index. Inception date: July 2000.

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