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.