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YOUR GOALS,OUR COMMITMENT.

Nikko AM Asia Credit Fund
August 2024 Supplementary Information

Country Allocation
Country
China
Hong Kong
South Korea
Indonesia
Philippines
Malaysia
Singapore
India
Australia
Japan
ThailandTaiwanMacau

Portfolio
Weight25.82%
18.03%
16.13%
10.07%
5.45%
5.06%
5.05%
3.24%
3.11%
1.55%
1.54%
1.47%
1.47%

Benchmarkweight34.55%
13.69%
16.09%
13.64%
4.91%
3.00%
4.44%
4.60%
0.00%
0.00%
1.75%
2.20%
1.13%

Portfolio

Benchmark59353

Other Information
No. of Issuers

Market ReviewAsian investment grade (IG) credits gained 1.82% in August reflecting thesharp drop in US Treasury (UST) yields as well as marginally tighter spreadsof about 3 basis points (bps).
An improvement in risk sentiment—fuelled by growing confidence that
the US Federal Reserve (Fed) would begin rate cuts in September —led toa tightening of Asian credit spreads in August. However, the month began
on a challenging note, with spreads widening significantly across theboard as risk assets sold off amid fears of a potential US recession. Themarkets quickly regained its composure, and spreads gradually narrowed
as subsequent data suggested that recession concerns might have been
overblown.
Over in China, July’s activity data indicated a weak start to the thirdquarter, with credit data remaining sluggish despite unexpected rate cutsin June. Attention remained on potential measures to support thehousing market. However, news that local governments might bepermitted to issue special local government bonds to purchase unsold
housing units for conversion into affordable housing had limited market
impact, as investors were sceptical about the feasibility of such measures.

Elsewhere in Asia, countries reported decent second-quarter growth. The
Philippines’ gross domestic product (GDP) growth accelerated to 6.3%
year-on-year (YoY) in the second quarter. Indonesia’s economy grew by astronger-than-expected 5.05%, while India and Thailand posted YoY
growth of 6.7% and 2.3% respectively over the same period. Separately,
Fitch Ratings affirmed India’s sovereign ratings at ‘BBB-‘ with a stable
outlook, citing the country’s strong mid-term growth prospects, robustexternal finance position and improving fiscal deficit situation. InThailand, Paetongtarn Shinawatra was appointed as prime minister
following the Constitutional Court’s dismissal of ex-Prime Minister Srettha
Thavisin.
Signs of a sharp weakening in the US labour market and dovish signals
from the Fed fuelled a further decline in UST yields in August. The
disappointing July employment report, which revealed weaker payroll
numbers and a higher unemployment rate, sparked concerns about amore rapid slowdown in the US economy. Fed communications
confirmed the likelihood of a September rate cut, with the July Federal
Open Market Committee (FOMC) minutes revealing that “the vastmajority” of participants were ready to ease. At the Jackson HoleSymposium, Fed Chairman Jerome Powell echoed this sentiment, statingthat “the time has come for policy to adjust”. At end-August, thebenchmark 10-year UST yield settled at 3.90%, 12.7bps lower comparedto end-July.

Investment Review and Outlook

The Fund returned +1.53% on gross basis in August, underperforming thebenchmark return by 29 bps. The underperformance was mainly driven
by negative Selection effect within China, Indonesia and Korea. Allocation
effect was positive mainly coming from being overweight Indonesia,
while yield curve positioning detracted slightly.
The fundamentals backdrop for Asian credit continues to be supportive.
In China, overall policy stance remains incrementally accommodative,
although more easing measures are needed given the still fragile recovery
in the real economy and the property sector. Macroeconomic andcorporate credit fundamentals across Asia ex-China are expected to stayresilient albeit moderating from the strong levels seen in the first half of2024 as the global economy potentially enters a temporary soft patch.
Apart from a few sectors and idiosyncratic situations, Asian IG corporate
and banks are entering this softer period with strong balance sheets andadequate ratings buffer for most.
These robust fundamentals, along with still strong demand-supply
technicals, should help to contain any spread widening ahead due to theelevation of risks such as local political uncertainties, trade tensions, andconcerns over the US presidential election outcome in November. The
biggest risk to Asia’s macroeconomic and credit outlook is that of a deep
US and global economic recession, which is not our base case. We still see
any healthy correction as creating better entry opportunities for Asia
credit, from both excess and total return perspectives.

Reference to any particular securities or sectors is purely for information only and does not constitute a recommendation to buy, sell or holdany securities or to be relied upon as financial advice in any way.

FOR PROFESSIONAL INVESTORS ONLY

1ASIA CREDIT MARKET SEGMENT

Risk Information
Class A USD
Synthetic Risk & Reward Indicator (SRRI)
Lower risk
Potentially lower reward

Higher risk
Potentially higher reward

Class A EUR
Synthetic Risk & Reward Indicator (SRRI)
Lower risk
Potentially lower reward

Higher risk
Potentially higher reward

The Sub-Fund is classified as article 6 and analyses sustainability risk as part of its risk management process to enhance its longterm risk adjusted return but does not promote specific environment, social or sustainability characteristics within the meaning ofthe SFD Regulation
Credit risk - is the possibility that a bond issuer will fail to pay interest and principal in a timely manner.
Liquidity risk - investments that could have a lower level of liquidity due to (extreme) market conditions or issuer-specific factors
and / or large redemptions of shareholders. Liquidity risk is the risk that a position in the portfolio cannot be sold, liquidated orclosed at limited cost in an adequately short time frame as required to meet liabilities of the Sub-Fund.
Counterparty risk - the possibility that the counterparty, such as brokers, clearing houses and other agents be unable to perform
its obligations due to insolvency, bankruptcy or other causes.
Operational risk - due to issues such as natural disasters, technical problems and fraud.
Derivative risk - the Sub-Fund may use derivatives as described in the Objectives and Investment Policy. Use of derivatives resultsin higher chances of loss due to the use of leverage, or borrowing. Derivatives allow investors to earn large returns from small
movements in the underlying asset's price. However, investors could lose large amounts if the price of the underlying assets moves
against them significantly.
Emerging markets risk - the risk arising from political and institutional factors which make investments in emerging markets lessliquid and subject to potential difficulties in dealing, settlement, accounting and custody.
Currency risk - this exists when the Sub-Fund invests in assets denominated in a different currency. A devaluation of the asset's
currency relative to the currency of the Sub-Fund will lead to a reduction in the value of the Sub-Fund.
Investing in China risk - the Sub-Fund intends to gain exposure to the financial securities of the People's Republic of China("China") without directly investing in the PRC (excluding Hong Kong). Investments in China will be sensitive to any political, social,economic, legal and regulatory developments which may take place in or in relation to China, which may adversely impact on thesecurities markets in China as well as the performance of the Sub-Fund.
Sustainability Risk
The risk arising from any environmental, social or governance events or conditions that, were they to occur, could cause material
negative impact on the value of the investment. Specific sustainability risk can vary for each product and asset class, and include
but are not limited to: Transition Risk, Physical Risk, Social Risk and Governance Risk.

YOUR GOALS, OUR COMMITMENT.

2ASIA CREDIT MARKET SEGMENT

Important Information
Nikko AM Global Umbrella Fund is an open-ended investment company established in Luxembourg (the "Fund"). This
information has been issued by Nikko Asset Management Luxembourg S.A. and is not aimed at or intended to be read byinvestors in any country in which the Fund is not authorised.
The Fund is registered in multiple jurisdictions and some sub-funds and/or share classes may not be available in all jurisdictions.
Please contact Nikko Asset Management Europe Ltd for further information. This material is for information only and is not arecommendation to sell or purchase any investment.
Any investment in the Fund may only be made on the basis of the current Prospectus and the Key Investor Information
Document (KIID), as well as the latest annual or interim reports. Please refer to the "Risk Factors" for all risks applicable ininvesting in this Fund. These documents are available from our website emea.nikkoam.com or can be obtained free of charge
from the Funds registered office in Luxembourg: Private Business Center 32 – 36, boulevard d’Avranches, L-1160 Luxembourg,Luxembourg. Swiss representative, Swiss paying agent and place of jurisdiction in Switzerland: BNP Paribas, Paris, Zurich Branch,
Selnaustrasse 16, 8002 Zurich. Telephone: +41 582 126374
Past performance is not a guide to future performance. Market and currency movements may cause the capital value of sharesand income from them to fall as well as rise and you may get back less than you invested.

Contact Us
Nikko Asset Management Europe Limited
Level 5, City Tower, 40 Basinghall Street, London, EC2V 5DE
United Kingdom
Phone: +44 (0)20 7796 9866
Email: EMEAenquiries@nikkoam.com

Nikko Asset Management Luxembourg S.A. (German Branch)Frankfurt Spaces Tower One , Brüsseler Str. 1-3, 60327, Frankfurt am
Main, Deutschland
Phone: +49 (0) 69 505047 301
Email: EMEAenquiries@nikkoam.com

Information sources include Bloomberg, Brown Brothers Harriman (Luxembourg) S.C.A., SMBC Nikko Bank (Luxembourg) S.A.,
BNP Paribas, Luxembourg Branch, Nikko Asset Management Asia and Nikko Asset Management Co., Ltd. All information as of 31
August 2024.
The copyright and intellectual rights to the index displayed above are the sole property of the index provider.
Authorised and regulated by the Financial Conduct Authority number 122084 and the Commission de Surveillance du Secteur
Financier (CSSF) number RCS Luxembourg B 123.103.

YOUR GOALS, OUR COMMITMENT.

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