Nikko Asset Management Australia, a Nikko AM group company with offices in Australia, manages the CVA Australian Equity strategy. The equity team is one of the largest in the industry, comprising skilled and experienced professionals who have worked together for over a decade (on average).

Key Characteristics
  • Intrinsic value style bias
  • Opportunistically invests across all market caps
  • Majority of analysts have portfolio management responsibilities
  • 5+ year investment horizon
  • 20 - 35 holdings

The investment team's philosophy for this strategy is centered on the following beliefs:

  • The best future results come from identifying value in the market today
  • All stocks have an intrinsic value which, with diligent research, can be assessed and compared
  • Whatever the direction of the share market, there are always stocks that represent better value than others
  • Market inefficiencies create buying opportunities – identifying these requires fundamental analysis, involving skill, experience and judgement

Nikko Asset Management Australia seeks to find attractive intrinsic value investments which offer the best outcome between risk and expected return, given the strategy's performance objectives and stated risk profile. Fundamental research forms the basis of Nikko Asset Management's investment process, with approximately 95% conducted in-house and idea generation primarily driven by relative value. The CVA approach aims to estimate company valuations and expected share market returns on a medium-term, objective basis.