Nikko AM Dynamic Bond Fund

* Distributions from the Fund are not guaranteed and are at the discretion of the Managers. Any distribution is expected to result in an immediate reduction of the net asset value (NAV) of the Fund. In the event that income derived from the investments of the Fund are insufficient to fund a distribution for the Fund, the Managers may determine that such distributions should be paid from the capital of the Fund. Where distributions are paid out of the capital of the Fund, the NAV of the Fund will be reduced and this will be reflected as a reduction in the realisation price of units of the Fund. Please refer to the Fund prospectus and product highlights sheet for more information.

Why invest in Nikko AM Dynamic Bond Fund?

Active management with proven track record1

Ranked the top global flexible bond fund since inception, the Underlying Fund has delivered an outstanding annualised return of 4.94% p.a. since launch and also outperformed its peer group average over the past eight calendar years (as at 31 January 2021). The portfolio managers have the flexibility to make tactical changes in response to the investment team’s micro and macro analysis.

Dynamic Bond Fund_chart 1aDynamic Bond Fund_chart 1b

 

Consistent outperformance in times of volatility

Displaying an ability to consistently outperform under periods of stress, the Fund provides investors with key diversification benefits. Since inception of the Underlying Fund in 2012, it has outperformed its peer group during heightened volatility.

Performance During Times of Heightened Volatility (VIX2 - The Fear Index)

Dynamic Bond Fund_chart 2

 

Unconstrained, conviction driven approach

Deploying an unconstrained strategy, the Underlying Fund effectively captures value across the entire fixed income universe, including high yield, investment grade, government and convertible bonds.

Dynamic Bond Fund_chart 3

 

Active management of downside risk

The Underlying Fund has delivered an excellent risk-adjusted return since launch with an annualised Sharpe Ratio of 1.89 as compared to its peer group average of 0.904.

The combination of careful portfolio construction, flexibility to adapt as the facts change, and the astute, high-conviction macroeconomic calls of the investment team have resulted in a superior drawdown profile. (A drawdown is a peak-to-trough decline during a specific period for a fund.)

Dynamic Bond Fund_chart 4

 

Important Information

This document is purely for informational purposes only with no consideration given to the specific investment objective, financial situation and particular needs of any specific person. It should not be relied upon as financial advice. Any securities mentioned herein are for illustration purposes only and should not be construed as a recommendation for investment. You should seek advice from a financial adviser before making any investment. In the event that you choose not to do so, you should consider whether the investment selected is suitable for you. Investments in funds are not deposits in, obligations of, or guaranteed or insured by Nikko Asset Management Asia Limited (“Nikko AM Asia”).

Past performance or any prediction, projection or forecast is not indicative of future performance. The Fund or any underlying fund may use or invest in financial derivative instruments. The value of units and income from them may fall or rise. Investments in the Fund are subject to investment risks, including the possible loss of principal amount invested. You should read the relevant prospectus (including the risk warnings) and product highlights sheet of the Fund, which are available and may be obtained from appointed distributors of Nikko AM Asia or our website (www.nikkoam.com.sg) before deciding whether to invest in the Fund.

The information contained herein may not be copied, reproduced or redistributed without the express consent of Nikko AM Asia. While reasonable care has been taken to ensure the accuracy of the information as at the date of publication, Nikko AM Asia does not give any warranty or representation, either express or implied, and expressly disclaims liability for any errors or omissions. Information may be subject to change without notice. Nikko AM Asia accepts no liability for any loss, indirect or consequential damages, arising from any use of or reliance on this document. This advertisement has not been reviewed by the Monetary Authority of Singapore.

Nikko Asset Management Asia Limited. Registration Number 198202562H.

 

 

Fund Documents

How To Invest

DBS is the exclusive distributor from 19 April 2021 to 19 October 2021.

For more information, please call DBS at 1800-111-1111 from 8:00am to 12:00am Mon – Sun, or get in touch with your DBS Relationship Manager.

 

Investment Objective

The investment objective of the Nikko AM Dynamic Bond Fund ("The Fund") is to achieve a high income with the prospect of capital growth. The Fund will invest directly or indirectly primarily in high yield bonds, investment grade bonds, government bonds, convertible bonds and other bonds.

The investment policy of the Fund will be to, as a Feeder Fund, invest substantially all of its assets in the shares of the Jupiter Global Fund – Jupiter Dynamic Bond ("Underlying Fund"). The investment objective of the Underlying Fund is achieve a high income with the prospect of capital growth from a portfolio of investments in global fixed interest securities.

The Underlying Fund will invest primarily in higher yielding assets including high yield bonds, investment grade bonds, government bonds, convertible bonds and other bonds.

 

Fund Details

Inception Date: 12 April 2021

Managers: Nikko Asset Management Asia Limited

Underlying Fund Investment Manager: Jupiter Asset Management Limited

Morningstar Category: Global Flexible Bond - EUR Hedged

Valuation Day: Every day (other than a Saturday, Sunday or public holiday in Singapore) on which banks in Singapore and Luxembourg are open for business, or any other day as the Managers and the Trustee may agree in writing.

Base Currency Fund: EUR

Share Classes: SGD Hedged, USD Hedged, AUD Hedged and EUR

Income Distribution: Monthly Distribution*

Initial Sales Charge: Current: Up to 5.00%; Maximum: 5.00%

Annual Management Fee: Current: 1.30% of the Class’ NAV; Maximum: 2.00% of the Class’ NAV

Minimum Initial Investment:
SGD Hedged Class: S$1,000
SGD Hedged (Acc) Class: S$1,000
USD Hedged Class: US$1,000
AUD Hedged Class: AU$1,000
EUR Class: EUR 1,000

Minimum Subsequent Investment:
SGD Hedged Class: S$100
SGD Hedged (Acc) Class: S$100
USD Hedged Class: US$100
AUD Hedged Class: AU$100
EUR Class: EUR 100

* Distributions from the Fund are not guaranteed and are at the discretion of the Managers. Any distribution is expected to result in an immediate reduction of the net asset value (NAV) of the Fund. In the event that income derived from the investments of the Fund are insufficient to fund a distribution for the Fund, the Managers may determine that such distributions should be paid from the capital of the Fund. Where distributions are paid out of the capital of the Fund, the NAV of the Fund will be reduced and this will be reflected as a reduction in the realisation price of units of the Fund. Please refer to the Fund prospectus and product highlights sheet for more information.

 

Who is the product suitable for?

The Fund is only suitable for investors who:

  • seek to achieve high income with the prospect of capital growth;
  • have a broad attitude to risk and are looking for a long term investment opportunity; and
  • are willing and able to accept that their principal will be at risk.

You should consult your financial advisers if in doubt about whether this product is suitable for you. For further information, refer to Para 7.2 of the Prospectus on product suitability.

 

What are the key risks of this investment?

The price of Units can go down as well as up. The value of the product and its dividends or coupons may rise or fall. The following are key risk factors that may cause you to lose some or all of your investment:

  • Market and Credit Risks
  • Liquidity Risks
  • Product-Specific Risks

Please refer to Para 9, 11.6 and 14 of the Prospectus for further information on risks of the product.