Strategic Asset Allocation

The Nikko AM diversified funds are designed to provide investors with a carefully constructed mix of diversified assets and aims to optimise investment returns and minimise the risk of loss. We undertake an annual review of the strategic asset allocations (SAA) of the Nikko AM Conservative Fund, Nikko AM Balanced Fund and the Nikko AM Growth Fund. The SAA is driven both by qualitative and quantitative rationales. As the SAA approach is based upon a long-term review of assumptions, year-on-year changes are expected to be modest.

We consider that conservative, balanced and growth funds should invest in a range of sectors including domestic and international assets and also utilise alternative assets where appropriate.

	Conservative Fund		Balanced Fund		Growth Fund
	Current	July 2022	Current	July 2022	Current	July 2022
Wholesale NZ Cash Fund	15%	20% (+5%)	-	-	-	-
Wholesale NZ Bond Fund	17.5%	15% (-2.5%)	10%	10%	-	-
Wholesale NZ Corporate Bond Fund	17.5%	20% (+2.5%)	10%	10%	6%	6%
Wholesale Global Bond Fund	17.5%	20% (+2.5%)	10%	10%	6%	6%
TOTAL INCOME ASSETS	67.5%	75% (+7.5%)	30%	30%	12%	12%
Wholesale Core Equity Fund	8.5%	5% (-3.5%)	13%	12% (-1%)	20%	17% (-3%)
Wholesale Concentrated Fund	-	-	8%	5% (-3%)	14%	12% (-2%)
Wholesale Property Fund	5%	5%	5%	5%	-	-
Wholesale Global Shares Fund	7%	5% (-2%)	13%	15% (+2%)	19%	21.5% (+2.5%)
Wholesale Global Shares Hedged Fund	7%	5% (-2%)	13%	15% (+2%)	19%	21.5% (+2.5%)
Wholesale ARK Disruptive Innovation Fund	0%	0%	3%	3%	6%	6%
TOTAL GROWTH ASSETS	27.5%	20% (-7.5%)	55%	55%	78%	78%
Nikko AM Wholesale Option Fund	0%	0%	5%	5%	5%	5%
JP Morgan Funds - Multi manager Alternatives Fund	5%	5%	10%	10%	5%	5%
TOTAL ALTERNATIVE ASSETS	5%	5%	15%	15%	10%	10%