ESG and investment restrictions
ESG and investment restrictions

ESG and Investment Restrictions

How ESG and Restrictions apply to our funds

Environment, social and governance (ESG) considerations are embedded into all our decision making. In addition, we have defined specific restrictions, which limit investments based on certain criteria or activities.

A restriction does not necessarily mean a complete ban or exclusion. Below is a summary of how restrictions are applied in each of the Nikko AM funds and what % of the fund is invested in each of the categories. This data is updated quarterly.
Nikko AM Investment Scheme
Open Close

ESG and specific restrictions

How ESG restrictions are applied for Nikko AM Investment Scheme funds.

  Primary Restrictions Other Restrictions
Fund ESG process applied Tobacco Fossil Fuels Controversial Weapons Gambling Adult Entertainment Alcohol
Diversified Funds1              
Nikko AM Conservative Fund YES
Nikko AM Balanced Fund YES
Nikko AM Growth Fund YES
Nikko AM Income Fund YES
Single Sector Funds              
Nikko AM Core Equity YES
Nikko AM Concentrated Equity YES
Nikko AM Global Shares Fund YES
Nikko AM Global Shares Hedged Fund YES
Nikko AM ARK Disruptive Innovation Fund YES2
Nikko AM NZ Cash Fund YES
Nikko AM NZ Bond Fund YES
Nikko AM NZ Corporate Bond Fund YES
Nikko AM Global Bond Fund YES2
Other              
Nikko AM Freedom Fund YES
legend Restriction in place for 100% of Fund
legend Restrictions in place but not in all of the underlying funds
legend No specific restriction in place. ESG process is still applied where applicable

1 Restrictions from the underlying funds these Funds invest in will apply. Primary restriction apply to all of the underlying funds with the exception of ARK Disruptive Innovation Fund which has a 3% and 6% allocations in the Balanced and Growth funds respectively.

2 This fund is not actively managed by Nikko AM. The underlying manager uses their own ESG framework for investment decisions. 

For further information on ESG and specific restrictions for our funds, please refer to our Statement of Investment Policy and Objectives (SIPO).

Actual Exposure

As at 30 June 2021.

Fund Name
Tobacco
Fossil Fuels
Controversial Weapons
Gambling
Adult Entertainment
Alcohol
Diversified Funds
Nikko AM Conservative Fund 0.00% 0.45% 0.03% 0.04% 0.00% 0.08%
Nikko AM Balanced Fund 0.00% 0.87% 0.02% 1.57% 0.00% 0.05%
Nikko AM Growth Fund 0.00% 1.32% 0.01% 2.58% 0.00% 0.03%
Single Sector Funds
Nikko AM Core Equity Fund 0.00% 3.5% 0.00% 4.95% 0.00% 0.00%
Nikko AM Concentrated Equity 0.00% 4.09% 0.00% 10.70% 0.00% 0.00%
Nikko AM Global Shares Fund 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Nikko AM Global Shares Hedged Fund 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Nikko AM ARK Disruptive Innovation Fund 0.00% 0.00% 0.00% 1.64% 0.00% 0.00%
Nikko AM NZ Cash Fund 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Nikko AM NZ Bond Fund 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Nikko AM Corporate Bond Fund 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Nikko AM Income Fund 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Nikko AM Global Bond Fund 0.00% 0.83% 0.19% 0.00% 0.00% 0.51%

How we define holdings:

  • Holdings calculations are based on the underlying securities held by the fund as at quarter-end.
  • These are typically based on the sector that a specific company or issuer is allocated to, these could be considered “primary” exposures.
  • “Secondary” exposure is not included for example if we held shares in a supermarket that sells tobacco or alcohol that would not appear as a holding in the tobacco or alcohol categories. Currently, this data is not available from companies or issuers however this may change in the future as there is an increasing focus and regulation on environmental and socially responsible disclosures.

Our Managed Funds

Learn about all the Nikko AM retail funds you can invest in through GoalsGetter.

Learn more

Our KiwiSaver Funds

Learn about all the Nikko AM KiwiSaver Scheme funds you can invest in through GoalsGetter.

Learn more