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Asian Fixed Income

Established manager of Asian bonds with long-term track record in delivering returns through multiple sources of alpha using both top-down and bottom-up strategies.
Clear & Focused Investment Philosophy

Our investment philosophy is premised on our belief that markets are dynamic, often prone to economic “noise” and inefficiencies. Outperformance can be achieved through a systematic application of proprietary top-down macro and bottom-up credit research.

01
Capital Preservation
02
Investing for the Long-term
03
Value Discipline
Our Three Key Principles
  1. Capital Preservation: Identifying, understanding and minimising risk through a rigorous and systematic due diligence and research process
  2. Investing for the Long-term: Identifying medium to long-term fundamentally-driven trends
  3. Value Discipline: Seeking long-term value and exploiting short to medium-term mis-pricing opportunities
Established Asian Bonds Manager

Nikko AM has a long history of managing Asian fixed income. Having established our first Asian bond strategy in 1982, we are one of the pioneers in the Asian fixed income space.

Our long standing capabilities have reaped us multiple industry awards and accolades over the years. Our firm has been recognised for its potential for investors within the region, and consistently won awards between 2015 to 2021 from the Asset Benchmark Research Awards.

Our team also boasts several portfolio managers who have received industry recognition for their astute investing.

Experienced Team

We have one of the largest dedicated Asian Fixed Income teams, with 16 investment professionals averaging 13 years of experience in Asian markets. Members of the team come from multi-national backgrounds, and this allows us to understand and converse in local languages and diverse cultures within the region.

Our portfolio managers and research analysts have honed a strong appreciation for the idiosyncratic characteristics of individual countries and sectors while successfully navigating our funds through various market cycles.

Differentiated & Rigorous Process

Our proprietary Fundamental, Valuation and Technical (FVT) Framework, which is applied to our top-down and bottom-up research, is the backbone for which we construct high conviction portfolios that seek to deliver returns through multiple sources of alpha.

This time-honed credit research and independent internal credit rating (ICR) model is where we differentiate ourselves.

The FVT Framework

Leveraging on our FVT Framework for analysis of credit, rates and FX, the outcome is a high-conviction portfolio consisting of the managers’ best investment ideas. With regards to our robust credit research, the most important output from our team of dedicated credit analysts is the ICR, which expands the opportunity set to unrated issuers.

The ICR process is the first pillar of our bottom-up credit research and enables the credit research team to assess quantitative and qualitative aspects of each issuer, independently of external credit rating agencies. ESG risks and opportunities are assessed and scored as part of this qualitative assessment within the ICR. Considering ESG factors is an important way to identify potential downside risks that may impact the borrower’s credit profile.

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Specialists Across the Asian Fixed Income Market
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Our Investment Philosophy

Our Investment philosophy is premised on capital preservation, investing for the long-term and value discipline. Our Asian Fixed Income team believes that markets are dynamic, often prone to economic “noise” and not always perfectly efficient. Therefore, outperformance can be achieved by applying a systematic approach to top-down macro and bottom-up credit research. Our team believes that all three factors of ESG — environmental, social, and governance — are inherent to long-term value creation, are core factors behind sustainable investment, and should be considered in investment decisions. The team applies this consistent investment philosophy across client portfolios.

ESG Implementation

At Nikko AM, ESG factors are an important aspect of the team’s credit analysis and an integrated part of the team’s investment process. The investment team researches and scores companies, taking into account both qualitative and quantitative factors. ESG factors are identified by their materiality and potential impact on companies’ credit profiles. The ESG factors of individual companies are determined by leveraging our research team’s keen knowledge through bottom-up fundamental analysis. Their ESG scores are then incorporated into our overall credit score, which will influence the final credit rating of a company. The credit rating of the company will help to determine the appropriate risk premium to apply to the bond valuations to justify an investment.

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.

The information on this website is not intended to be an offer, or a solicitation of an offer, to buy or sell any product or service to any person in any jurisdiction where such offer, solicitation, purchase or sale would be unlawful under the laws of such jurisdiction.

This website may contain links to the website of certain overseas affiliates of Nikko Asset Management Asia Limited (“Nikko AM Asia”). However, providing such links should not be considered as offering or solicitation by Nikko AM Asia of any product or service of its affiliates to any person.

This website 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. The mention of individual securities, sectors, regions or countries within this website are for illustration purposes only and does not imply a recommendation to buy or sell. 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 AM Asia.

Past performance or any prediction, projection or forecast is not indicative of future performance. The Funds or any underlying funds may use or invest in financial derivative instruments. The value of units and income from them may fall or rise. Investments in the Funds 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 Funds, 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 Funds.

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 website.

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