Nikko Asset Management Co., Ltd. has announced that the total net assets of the Nikko Triple Fund (Property, Bond, Equity) Monthly Dividend Payment Type reached 200.295 billion Yen on August 18, 2005. The total net assets have grown twofold in only three months, since exceeding 100 billion Yen on May 16, 2005.
The Nikko Triple Fund is designed to make it easy for investors to understand, and it aims for stable growth based on a diversified structure. The fund has mainly been purchased by investors at banks due to the popularity of these easy to understand features and stable growth, as well as the monthly dividend payments. All these factors have contributed to the growth of the total net assets in such a short space of time. The NAV of the fund has shown steady growth reaching 12,324 Yen, which also contributed to the growth of the total net assets.
The fund, which was launched in August 2003, invests in three asset classes — real estate investment trusts (REITs), fixed income products, and equities. The idea of investing in three different asset classes has come from the traditional concept of holding assets in real estate, cash and equities, and Nikko AM modernized the old wisdom to fit into today’s market.
Twenty-five percent of the fund is invested in J-REITs, 50 percent in foreign currency denominated fixed income products, and 25 percent in Japanese equities. The fund is divided equally between investment in domestic assets and foreign currency assets, giving it a well-diversified currency exposure.
The Nikko Triple Fund aims to distribute stable dividends on a monthly basis, out of gains generated from income gains including dividends and interest on portfolio products, as well as any capital gains generated by the growth of each asset value. The dividend payments are an important factor in the popularity of the fund, reflecting strong investor demand for such payments, which are regarded as regular income, just like a pension or monthly allowance.
The number of regional banks selling the fund has grown particularly rapidly. It is currently being distributed by 32 banks and three securities companies nationwide.