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Nikko AM Australian Equities

PRI reporting framework 2018

You are in Strategy and Governance » Investment policy

Investment policy

SG 01. RI policy and coverage

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

01.3. Indicate if the investment policy covers any of the following

01.4. Describe your organisation’s investment principles and overall investment strategy, and how they consider ESG factors and real economy impact.

Nikko AM Australian Equities (Nikko) has a long history of investing based on fundamental research. All stocks have an intrinsic value that with expert and diligent research can be accurately assessed. In the short-term the market price frequently reflects factors other than this intrinsic value. Assessing the intrinsic value of an investment can reveal profit opportunities, as the market price will invariably move towards the intrinsic value. This thinking lies at the core of the Nikko AM Australian Equities investment approach.

Investing in a responsible manner, where material issues including Environmental, Social and Governance (ESG) issues are considered, is a part of our duty to clients. Engagement with companies held in the portfolios is an important component of the investment process, with the aim to improve the outcome for investors as well as increasing the value of companies by addressing ESG issues.

01.5. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

As long term, fundamental investors, Nikko AM Australian Equities considers ESG factors in the same way as more traditional factors such as market structure, innovation and industry growth. Any material ESG issues are incorporated into the valuation using the same methods that more traditional factors are handled. This way, the impact is neither under nor over-stated.  It is important to note that we do not exclude particular asset types, industry sectors or securities wholly on moral or ethical grounds, unless this is expressly built into the product’s investment strategy or client agreement.


SG 02. Publicly available RI policy or guidance documents

New selection options have been added to this indicator. Please review your prefilled responses carefully.

02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.

URL/Attachment

URL/Attachment

URL/Attachment

02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.

URL/Attachment

URL/Attachment

URL/Attachment

URL/Attachment

02.3. Indicate if your organisation’s investment principles, and overall investment strategy is publicly available

02.4. Additional information [Optional].


SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

Nikko AM Australia is dedicated to ensuring it conducts its business in accordance with all applicable laws and regulations.

The Conflicts of Interest Policy is designed to ensure that:
 Nikko AM Australia complies with the Nikko Asset Management Group Conflicts of Interest Control Regulations (Group Policy);
 Nikko AM Australia upholds its fiduciary duties to clients and their assets;
 Nikko AM Australia meets its regulatory obligation to have adequate arrangements for the management of conflicts of interest that may arise wholly, or partially in relation to the provision of financial services;
 Nikko AM Australia meets its regulatory obligation to do all things necessary to ensure that financial services are provided efficiently, honestly and fairly;
 Nikko AM Australia investors, clients and its employees are protected from financial or reputational harm and / or legislative action by ensuring all actual, apparent or potential conflicts of interest are identified and appropriately managed; and
 There is appropriate responsibility and accountability assigned to relevant Nikko AM Australia employees to ensure continued compliance with this policy and the Group Policy.

03.3. Additional information. [Optional]

We have not had any material issues regarding conflict of interest.

Our first priority is our fiduciary duty to our client. We do not consider the other parts of the business in our investment decisions, with the exception being any legal requirements.


SG 04. Identifying incidents occurring within portfolios (Private)


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