Nikko AM World Bank Green Fund

The investment objective of this fund is to achieve capital growth and income over the mid to long term by investing primarily in World Bank green bonds, which will help to mitigate global climate change in developed and emerging markets. The emphasis of the approach is active currency management to identify countries with positive underlying fundamentals and significant prospective income. Through diversification, portfolios are exposed to both developed and emerging currencies, within a stable framework.

The minimum investment in the Fund is $100K USD and the Fund is sold only to accredited US investors as a US Private Placement.

Financial description

The Nikko AM World Bank Green Fund aims to achieve capital growth and income over the mid to long term, by primarily investing in World Bank Green bonds which help to mitigate global climate change in developed and emerging markets. The emphasis of the approach is active currency management to identify countries with positive underlying fundamentals and significant prospective income. Through diversification, portfolios are exposed to both developed and emerging currencies, within a stable framework.
The fund actively manages currency and duration positions to seek to enhance return. In addition, by holding high grade World Bank green bonds, the fund has greater potential to outperform the underlying government bond indices.
The broad range of countries in the index – both developed and emerging – and the active management of currency exposure relative to the benchmark, both provide opportunities to achieve an excess return. With duration positions in each market monitored relative to the underlying country index, opportunities are sought to add value within individual markets, as well as at the portfolio level.
The Fund uses a customized benchmark which is comprised of 50% Citigroup World Government Bond Index and 50% JP Morgan Government Bond Index – Emerging Markets.