Award-winning Singapore Equity Fund to be Passported to Malaysia and Thailand

Press Release

29 October 2014

Nikko Asset Management is amongst the first asset managers in Singapore to have a fund approved by the Monetary Authority of Singapore (MAS) as a Qualifying Collective Investment Scheme (CIS) under the ASEAN CIS Framework, the company announced today. The company plans to launch the Nikko AM Shenton Horizon Investment Funds Singapore Dividend Equity Fund ("Singapore Dividend Equity Fund" or the "Fund") in Malaysia with Affin Hwang Asset Management Berhad (Affin Hwang AM), pending approval from the host country.

The ASEAN CIS Framework to facilitate cross-border offers of CIS to retail investors was jointly launched by the MAS, the Securities Commission of Malaysia, and the Securities and Exchange Commission, Thailand on 25 August 2014.

"The ASEAN CIS Framework is a win-win proposition for both investors and asset managersit brings diversity to investors and it gives asset managers access to a wider audience to build scale for strong products," said Eleanor Seet, President of Nikko Asset Management Asia. "As Asia's premier global asset manager, Nikko Asset Management is well-positioned to bring our specialist expertise to Asian investors. We are pleased to have a trusted partner in Affin Hwang AM in breaking new ground to increase the choice of solutions for retail investors in Malaysia."

The Singapore Dividend Equity Fund has won The Edge-Lipper Award for the 'Best Fund over 3 Years' in the Equity Singapore category for two consecutive years, in 2013 and 2014#. The Fund aims to achieve capital appreciation by investing primarily in equities listed on the Singapore Exchange that offer attractive and sustainable dividend payments.

"Nikko AM's Singapore Dividend Equity Fund is a natural choice to kick off the passporting initiative as it adds to our income-based fund offerings, providing alternatives for Malaysian investors to choose from, said Teng Chee Wai, Managing Director of Affin Hwang AM. "We look forward to obtaining regulatory approval to bring this award-winning Singapore equity fund with stellar performance to investors here."

At present, the Fund size is SGD 157 million (as of 30 September 2014). The Fund was restructured in February 2012 into a dividend-paying fund targeting distributions of between 5% to 7% per annum. Existing unitholders would have seen the value of their units increase by 22.98% by 30 September 2014 providing a total return of 42.68% since February 2012*.

"The Singapore Dividend Equity Fund is the first in a series of funds we intend to passport under the ASEAN CIS Framework. We are very excited about this opportunity to share our investment capability to potentially benefit a broader set of investors in the region," added Seet.

#Source: The Edge-Lipper Fund Awards 2013, 2014

*Source: Nikko Asset Management Asia Limited. The total return number of 42.68% is assuming that all dividends are reinvested. Past performance is not indicative of future results and dividends are not guaranteed and are distributed at the discretion of the manager.

– ENDS –

For inquiries, please contact:

Joyce Koh
Tel: +65-6500-5805

About Nikko Asset Management

With USD203.9 billion* under management, Nikko Asset Management is one of Asia’s largest asset managers, providing high-conviction, active fund management across a range of equity, fixed income, multi-asset and alternative strategies. In addition, its complementary range of passive strategies covers more than 20 indices and includes some of Asia’s leading exchange-traded funds (ETFs).

Headquartered in Asia since 1959, Nikko Asset Management and its subsidiaries employ personnel representing around 30 nationalities, including approximately 200 investment professionals**. The firm has a presence through subsidiaries or affiliates in a total of 11 countries and regions. More than 400 banks, brokers, financial advisors and life insurance companies around the world distribute the firm’s products.

The investment teams benefit from a unique global perspective complemented by the firm's historic Asian DNA, striving to deliver consistent excellence in performance. The firm also prides itself on its progressive, solution-driven approach, which has led to many innovative funds launched for its clients.

For more information about Nikko Asset Management and to access its investment insights, please visit the firm’s homepage.

* Consolidated assets under management and sub-advisory of Nikko Asset Management and its subsidiaries as of .
** Including employees of Nikko Asset Management and its subsidiaries as of .

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