Invest early in Asia's potential

Nikko AM Shenton Emerging Enterprise Discovery Fund (SEED Fund)

The SEED Fund allows investors to access small and medium-sized companies that are hidden gems in the Asia ex-Japan equity sector. This presents plenty of opportunities for investors to invest in such companies that have the potential to grow into stable and matured companies.

About the Fund

The Nikko AM Shenton Emerging Enterprise Discovery Fund (SEED Fund) invests primarily in the listed equities of small to medium-sized companies in Asia ex-Japan which in the Managers’ opinion are undervalued. Small and medium-sized companies shall mean companies which are included in a market index for small and medium-sized companies, or companies that have a comparable market capitalisation.

What determines the size of a company?
  • Market capitalisation indicates the value of a company in terms of its size.
  • Here at Nikko AM, we define small caps as small and medium-sized companies with a comparable market capitalisation of around USD 200 million to USD 5 billion.

Fund Highlights

Award winning fund^

Long track record of investment in Asia ex-Japan small caps

Active on the ground engagement with management

Invest in small caps with growth potential

^ The Fund has won the Fund Selector Asia Fund Awards for Asia Pacific Equity (Gold) 2023 and 2024.
Past performance of the Fund is not necessarily indicative of its future performance.

Why invest in the Fund?

Watch Grace Yan, Senior Portfolio Manager of Asian Equity, who manages this award winning fund as she shares with us on how investing in stocks of Asia ex-Japan smaller companies can be advantageous to an investors’ portfolio.

Benefits of investing in Asia small caps

1) Upside potential of undervalued and under researched companies

  • Smaller companies have outperformed larger companies 54% of the time since 2000*.
  • Larger opportunity set in small and medium-sized companies compared to large companies. 
  • As such, they represent alpha opportunities if identified with the right investment approach.

Index performance

1Small caps benchmark
2Large caps benchmark
*Source: Bloomberg, Nikko AM, August 2023
Past Performance is not indicative of future performance.

2) Differentiated holdings across sectors

  • Investing in small caps offer diversification from large caps. 
  • Country allocation - large caps have a larger weight in China and small caps have a larger weight in countries like India and Taiwan. 
  • Sector allocation - large caps have a larger weight in Financials and Information Technology whereas small caps have a larger weight in Industrials and Healthcare. 
Asset allocation

Source: MSCI, Nikko AM, 31 October 2023
Reference to any particular sectors or countries are purely for illustrative purposes only and does not constitute a recommendation or to be relied upon as financial advice in any way.
1Small caps benchmark
2Large caps benchmark

3) Agility of small companies to harness change and respond nimbly to risks

  • Given today’s environment where big technology is under scrutiny, small and medium-sized companies will find themselves on a more even playing field with large companies.
  • Small and medium-sized companies may also have the upper hand because they are not restricted by legacy systems or old technology. This means they can exploit smart technology and deliver innovative products with greater personalisation while incurring lower costs.

How to invest

Enquiries on Unit Trusts

If you would like to invest, please get in touch with one of these distributors, or our Client Services Team at / (SG Toll-Free) 1-800-535-8025 or (Overseas) +65-6535-8025.

Distributors list
Important Information

The funds mentioned are Singapore registered funds approved for sale or purchase in Singapore. By proceeding, you are representing and warranting that you are either resident in Singapore or the applicable laws and regulations of your jurisdiction allow you to access the 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 ( 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.

Benchmark Source: MSCI. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI's express written consent.

Morningstar Rating: © Morningstar 2024. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Nikko Asset Management Asia Limited. Registration Number 198202562H

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