Nikko AM – Changes to Nikko Asset Management Asia Limited funds
Shareholder Notice
The fund manager would like to inform you of the following:
“INTRODUCTION OF SWING PRICING POLICY BY THE FUNDS
We, Nikko Asset Management Asia Limited as the managers of the Funds (the “Managers”), are writing to you in our capacity as the managers of the Funds to inform you that we will be introducing swing pricing policy in respect of the Funds with effect from 22 April 2021 (or such other date as we may subsequently advise) (the “Effective Date”).
Dilution
The Funds are single priced and the value of a Fund may fall as a result of amongst others the transaction costs (such as broker commissions, custody transaction costs, stamp duties or sales taxes) incurred in the purchase and/or sale of its underlying investments caused by subscriptions, realisations, switches and/or exchanges of units in the Fund and the spread between the buying and selling prices of such underlying investments. This effect is known as “dilution”.
Swing Pricing
With effect from the Effective Date, to protect the interest of existing investors, we, in consultation with the trustee, may apply a technique known as “dilution adjustment” or “swing pricing” (“Swing Pricing”) in certain circumstances that we deem appropriate. Swing Pricing involves adjusting the net asset value (“NAV”) per unit of the Fund so that such transaction costs and dealing spread in respect of the underlying investments are, as far as practicable, passed on to the relevant investors who are subscribing, realising, switching and/or exchanging units on a particular dealing day.
Maximum Adjustment
The amount of adjustment at any future point in time may vary depending on inter alia market conditions, but will under normal circumstances not exceed 2% of the NAV per unit on the relevant dealing day (the “Maximum Adjustment”). We reserve the right to apply an adjustment of an amount not exceeding the Maximum Adjustment on the relevant dealing day where we deem appropriate and have the discretion to vary the amount of adjustment up to the Maximum Adjustment, in consultation with the trustee, from time to time without giving notice to the relevant investors.
NIKKO AM SHENTON THRIFT FUND (“STF”) – CLARIFICATION TO INVESTMENT OBJECTIVE, FOCUS AND APPROACH
We wish to inform you that with effect from 22 March 2021, we will be revising the wordings in the investment objective, focus and approach of the STF to provide greater clarity as follows:
| Current Investment Objective, Focus and Approach
(prior to 22 March 2021) |
Revised Investment Objective, Focus and Approach
(on and from 22 March 2021) |
| To maximise medium to long term capital appreciation by investing primarily in stocks listed on the Singapore Exchange Securities Trading Limited (“SGX-ST”).
Besides stocks listed on the SGX-ST, the Scheme may also invest in companies listed on stock exchanges outside Singapore subject to a limit not exceeding 30% of the total value of the Deposited Property or such other amount as agreed from time to time between the Managers and the Trustee. The Scheme invests in Singapore and Asia Pacific countries. There is no target industry or sector.
The Managers believe that active investment management can add value to investors. Active management is measured by active share and the deviation from the benchmark. Securities selection for the fund is largely driven by a bottom-up approach and is not restricted to components in the benchmark, and portfolio construction is generally determined by fundamental research of securities in the applicable universe. As a result, benchmark components may be over/under weighted and non-benchmark components may be selected to deliver out-performance relative to the benchmark over the medium to long term.
Please refer to paragraph 16 of this Prospectus for details of the benchmark of this Scheme.
|
To maximise medium to long term capital appreciation by investing primarily in stocks listed on the Singapore Exchange Securities Trading Limited (“SGX-ST”).
Besides stocks listed on the SGX-ST, the Scheme may also invest in companies listed on stock exchanges outside Singapore subject to a limit not exceeding 30% of the total value of the Deposited Property or such other amount as agreed from time to time between the Managers and the Trustee. These companies are listed on stock exchanges outside Singapore including but not limited to stocks and equity exchanged traded funds listed on Asian stock exchanges, and American depositary receipts of stocks not listed in Asia but with a country exposure to countries in the Asia Pacific region. The Scheme invests in Singapore and Asia Pacific countries. There is no target industry or sector.
The Managers believe that active investment management can add value to investors. Active management is measured by active share and the deviation from the benchmark. Securities selection for the fund is largely driven by a bottom-up approach and is not restricted to components in the benchmark, and portfolio construction is generally determined by fundamental research of securities in the applicable universe. As a result, benchmark components may be over/under weighted and non-benchmark components may be selected to deliver out-performance relative to the benchmark over the medium to long term.
Please refer to paragraph 16 of this Prospectus for details of the benchmark of this Scheme. |
Please note that the above revisions are for clarification purposes only and there will not be an actual change to the way the STF is being managed.
For the avoidance of doubt, please note that the current investment objective, focus and approach of the above mentioned Funds will remain unchanged.”
For more details, please refer to the shareholder notification letter.
