Nikko AM extends and deepens bench strength in China equit

2 JULY 2018

Nikko AM extends and deepens bench strength in China equity

Connectivity to information and institutional DNA critical in

sustainable investing in a statuesque evolving market

Nikko Asset Management (“Nikko AM”) today announces that it has augmented its China Equity capability with additional resource based in Shenzhen and Hong Kong. The All China team of six is a natural extension of one of the largest Asian Equity teams housed in Singapore. The enlarged capability comprises native Chinese analysts, seasoned China specialists and analysts who have invested more broadly across emerging and developed Asia.

Leading the team is Eng Teck Tan, senior portfolio manager, who reports to Peter Sartori, Head of Asian Equity at Nikko AM. Tan will apportion his time between Singapore, Hong Kong and Shenzhen, and he is supported by three other portfolio managers based in Hong Kong and two analysts in Shenzhen.

Designed for Insights Intensity

The colossal Chinese market is characterised by an intensity of information that demands a whole new level of research and connectivity that the Nikko AM team is purposefully designed for. With diverse and complementary experience, the team is adept in navigating and staying ahead in a fast evolving China.

Being on the ground, Nikko AM has an intuitive understanding of the Chinese market and its nuances. Furthermore, the firm benefits from its unique and long established partnership with Rongtong Fund Management Co. Ltd. An early entrant to China, Nikko AM is plugged into Rongtong’s local information network and frequent company engagement. The two partners work very closely in mining market intelligence and generating investment ideas.

Institutional DNA

Nikko AM further leverages its research advantage with institutional discipline in portfolio construction. Looking beyond crowded trades, the China equity team invests with high conviction in growth stocks with the potential for sustainable returns.

Nikko AM Deputy President, Global Head of Investment and CIO-International, Yu-Ming Wang said, “China is transforming quickly and we believe it is most prudent to invest in it as a stock-picker. We have widened and deepened our bench strength in China equity, building a team with experience that is bespoke to China’s evolving nature and stage of development. In sports, championships often go to the teams with the deepest bench because they have great ability to withstand adversity and the unknown.”

Our China team is backed by the domain knowledge of our Asian equity team with members who have been investing in China for some 20 years, and our access and connectivity to domestic information networks through joint venture partner, Rongtong. Our team relies on a developed and time-tested ESG-integrated robust investment process, applied for institutional investors.”

Nikko AM has been investing in China for close to 15 years. The firm was the first asset management company to be certified by the Chinese authorities as a qualified foreign institutional investor (QFII) in December 2003, and launched Japan’s first RMB-denominated Government Bond Fund in 2004. This was followed by the launch of one of the world’s first funds investing in the A shares of a burgeoning China in February 2005.

In April 2007, Nikko AM made a strategic investment in a leading Chinese asset manager, Rongtong Fund Management Co. Ltd. Established in 2001, Rongtong is today one of the largest Sino-Foreign joint venture fund management companies in China. Representing new China, its headquarters are Shenzhen, with branch offices in Beijing, Shanghai and Chengdu.

With proven track record and experience that is bespoke to the great growth opportunity that China presents, Nikko AM is poised to help global investors gain exposure to the world’s growth engine.

- ENDS -

About Nikko Asset Management

With US$220.1 billion (23.41 trillion yen)* 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 largest exchange-traded funds (ETFs).

Headquartered in Asia since 1959, the firm represents nearly 200** investment professionals and over 30 nationalities across 9 countries. More than 300 banks, brokers, financial advisors and life insurance companies around the world distribute the company’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, visit the firm’s homepage.

* Consolidated assets under management and sub-advisory of Nikko Asset Management and its subsidiaries as of 31 March 2018.

** As of 31 March 2018, including employees of Nikko Asset Management and its subsidiaries.

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