Fund Rationale: Nikko AM Shenton Income Fund

Nikko AM Shenton Income Fund (the “Fund”)
SGD Retail Distribution Shares (ISIN: SG9999004345)
Fund Manager Page
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Endowus has selected the Fund because it provides an attractive yield-to-risk trade off, and it has a strong track record since the new portfolio manager was appointed in September 2018.


Key Information

Fund Objective: Aims to provide regular income distributions while seeking to achieve returns in excess of 4% per annum over the medium to long term.

Suitability: Investors who are seeking regular income distributions and returns in excess of 4% per annum over the medium to long term, seeking exposure to fixed income instruments primarily issued by governments and corporations within the Asia-Pacific region, and are willing and able to accept that their principal will be at risk.

* Total Fund-level Fees include fund management fee of 1.00%.
** Endowus do not charge a preliminary sales charge or any other additional fees, other than the all-in Endowus Access Fee.

Fund Characteristics

Fund Inception: 31 January 1989
Share Class Inception: 31 January 1989
Benchmark: 4% (Endowus typically uses the Bloomberg Barclays Global Aggregate fixed income index as a representative index to benchmark performance over the long term.) 

Fund AUM: SGD 154m
Source: MorningStar as of 31 March 2021. Please refer to the FMC page for the most updated AUM.

Regional Allocation:

Sector Allocation:

Source: MorningStar as of 31 January 2021. Allocation data indicate actual exposure as a percentage of the Fund's total Net Asset Value. Please refer to the Fund Manager Page for the most updated information on Fund Holdings and Breakdown.

Selection Criteria

Endowus has selected Nikko AM Shenton Income Bond Fund because it provides an attractive yield-to-risk tradeoff, and has shown a strong track record since a new portfolio manager was appointed in September 2018. 

The Fund has multiple return drivers -- it allocates to both Asian hard currency bonds (both investment grade and high-yield credits) and Asian local currency bonds (both local currency government bonds and SGD-denominated credits) . It also actively manages duration and currency positioning. The Fund is a high-conviction portfolio based on the team’s best ideas in Asian local currency rates, currencies, and credit.

The Fund was restructured in January 2013 to the current investment objective, and in 2018, the Fund changed its lead portfolio manager to Shao Fung Yang. Since the manager change, the Fund has achieved its objective and demonstrated strong risk-adjusted performance. It is also able to maintain a relatively high yield without taking too much duration risk.

Updated by Endowus: June 2021

** Disclaimer: Past performance should not be taken as an indication or guarantee of future performance and no representation or warranty, express or implied, is made regarding future performance. Any opinions expressed reflect a judgment at the original date of publication by us and are subject to change without notice.
The prospectus, profile statement, product highlight sheet, fund factsheet or other offer or product documents may contain references about the expected risk tolerance of their target investors. These are in no way indicative of how we at Endowus have assessed your risk tolerance based on your stated objectives and financial situation. Endowus accepts no responsibility for investment decisions made in response to the expected risk tolerance levels mentioned in the product or offer documents.