NIKKO MONEY MARKET FUND Mutual Investment Fund Luxembourg
Unaudited Semi-Annual Report June 30, 2011
This report does not constitute an offer of units. No subscription can be received on the basis of financial reports. Subscriptions are only valid if made on the basis of the current prospectus, which must be accompanied by the latest available annual report of the Fund and the latest unaudited semi- annual report if published after such annual report. NIKKO MONEY MARKET FUND Mutual Investment Fund
Table of contents
Nikko Money Market Fund Page(s)
Administration of the Fund 3 General information 7
Statement of net assets Combined statement 10 US Dollar Portfolio 11 Euro Portfolio 12 Australian Dollar Portfolio 13 Canadian Dollar Portfolio 14 New Zealand Dollar Portfolio 15
Statistical information 16 Notes to the financial statements 17
Nikko Money Market Fund - US Dollar Portfolio
Statement of investments 22 Classification of investments by country and by economical sector 24
Nikko Money Market Fund - Euro Portfolio
Statement of investments 25 Classification of investments by country and by economical sector 26
Nikko Money Market Fund - Australian Dollar Portfolio
Statement of investments 27 Classification of investments by country and by economical sector 29
Nikko Money Market Fund - Canadian Dollar Portfolio
Statement of investments 30 Classification of investments by country and by economical sector 31
Nikko Money Market Fund - New Zealand Dollar Portfolio
Statement of investments 32 Classification of investments by country and by economical sector 33
NIKKO MONEY MARKET FUND Mutual Investment Fund
Administration of the Fund
Registered Office
9A, rue Robert Stümper, L-2557 Luxembourg
Management Company
SMBC Nikko Investment Fund Management Company S.A. (formerly known as Total Alpha Investment Fund Management Company S.A.) 9A, rue Robert Stümper, L-2557 Luxembourg
Board of Directors of the Management Company
Chairman :
Mr. Masashi KAMO, Deputy Managing Director SMBC Nikko Bank (Luxembourg) S.A. (formerly known as Nikko Bank (Luxembourg) S.A.)
Directors :
Mr. John Pierre HETTINGER, Managing Director SMBC Nikko Bank (Luxembourg) S.A. (formerly known as Nikko Bank (Luxembourg) S.A.)
Mr. Jacques ELVINGER, Partner Elvinger, Hoss & Prussen, Luxembourg
Investment Advisor
Nikko Asset Management Europe Ltd. 1 London Wall, London EC2Y 5AD, United Kingdom
Custodian, Domiciliary Agent, Administrative Agent, Registrar and Transfer Agent
SMBC Nikko Bank (Luxembourg) S.A. (formerly known as Nikko Bank (Luxembourg) S.A.) 9A, rue Robert Stümper, L-2557 Luxembourg
Distributor and Agent Securities Company in Japan
SMBC Nikko Securities Inc. (formerly known as Nikko Cordial Securities Inc.) 3-1, Marunouchi 3-chome, Chiyoda-ku, Tokyo, 100-8325, Japan
Page 3 NIKKO MONEY MARKET FUND Mutual Investment Fund
Administration of the Fund (continued)
Distributors in Japan
* Kazaka Securities Co., Ltd. 13-2 Nihonbashi Kabutocho, Chuo-ku, Tokyo * Tokai Tokyo Securities Co., Ltd. 7-1, 4-chome, Meieki Nakamura-ku, Nagoya-shi, Aichi Prefecture * Toyo Securities Co., Ltd. 4-7-1, Hacchobori, Chuo-ku, Tokyo * Monex, Inc. 11-1, Marunouchi 1-chome, Chiyoda-Ku, Tokyo * Mito Securities Co., Ltd. 3-10, Nihonbashi 2-chome, Chuo-ku, Tokyo * Shizugin TM Securities Co., Ltd. 1-13, Outemachi, Aoi-Ku, Shizuoka-shi, Shizuoka Prefecture * SMBC Friend Securities Co., Ltd. 7-12, Nihonbashi Kabutocho, Chuo-Ku, Tokyo * Aozora Bank, Ltd. 3-1 Kudan-Minami 1-chome, Chiyoda-ku, Tokyo * Mizuho Securities Co., Ltd. 5-1, Otemachi 1-chome, Chiyoda-ku, Tokyo * Okasan Securities Co., Ltd. 17-6, Nihonbashi 1-chome, Chuo-ku, Tokyo * Bansei Securities Co., Ltd. (from May 16, 2011 previously Bansei Yamamaru Securities Co., Ltd.) Kayabacho Tower, 21-2, Shinkawa 1-chome, Chuo-ku, Tokyo * Mitsubishi UFJ Merrill Lynch PB Securities Co., Ltd. Nihonbashi 1-chome Building, 4-1, Nihonbashi 1-chome, Chuo-ku, Tokyo * Mitsubishi UFJ Morgan Stanley Securities Co, Ltd. 5-2, Marunouchi 2-chome, Chiyoda-ku, Tokyo * Ando Securities Co., Ltd. 23-21, Nishiki 3-chome, Naka-ku, Nagoya-shi, Aichi Prefecture * Utsunomiya Securities Co., Ltd. 4-4, Ikegamicho, Utsunomiya-shi, Tochigi Prefecture * Chibagin Securities Co., Ltd. (from January 1, 2011 previously Chuo Securities Co., Ltd.) 5-1, Chuo 2-chome, Chuo-ku, Chiba-shi, Chiba Prefecture * Sony Bank, Inc. 9-11, Akasaka 2-chome, Minato-ku, Tokyo * Mizuho Investors Securities Co., Ltd. 10-30, Nihonbashi Kakigaracho, 2-chome, Chuo-ku, Tokyo * New-S Securities Co., Ltd. 11-10, Higashi 3-chome, Shibuya-ku, Tokyo * Capital Partners Securities Co., Ltd. Asahi Building, 6th Floor, 3-12-2, Nihonbashi, Chuo-ku, Tokyo * H.S. Securities Co., Ltd. 6-8-1, Nishishinjuku, Shinjuku-ku, Tokyo * YM Securities Co., Ltd. 3-3-1, Buzendacho, Shimonoseki-shi, Yamaguchi Prefecture * Maeda Securities Co., Ltd. 14-2, Tenjin 2-chome, Chuo-ku, Fukuoka-shi, Fukuoka Prefecture
Page 4 NIKKO MONEY MARKET FUND Mutual Investment Fund
Administration of the Fund (continued)
Distributors in Japan (continued)
* The Joyo Securities Co., Ltd. 4-12, Minamimachi 3-chome, Mito-shi, Ibaraki Prefecture * The Tachibana Securities Co., Ltd. 1-13-14, Nihonbashi Kayabacho Chuo-ku, Tokyo * Hamagin Tokai Tokyo Securities Co., Ltd. 1-1, Minatomirai 3-chome, Nishi-ku, Yokohama -shi, Kanagawa Prefecture * Rakuten Securities, Inc. Shinagawa Seaside Rakuten Tower, 4-12-3 Higashi-Shinagawa, Shinagawa-ku, Tokyo * SBI Securities Co., Ltd. 6-1 Roppongi 1-chome, Minato-ku, Tokyo * Hyakugo Securities Company Limited 33-1, Higashi-marunouchi, Tsu-shi, Mie Prefecture * Chugin Securities Co., Ltd. 2-5, Honmachi, Kita-ku, Okayama-shi, Okayama Prefecture * Nishi-Nippon City Tokai Tokyo Securities Co., Ltd. 3-6, Hakataekimae 1-chome, Hakata-ku, Fukuoka-shi, Fukuoka Prefecture * Musashi Securities Co., Ltd. 333-13 Sakuragicho 4-chome, Omiya-ku, Saitama-shi, Saitama Prefecture * Niigata Securities Co., Ltd. 8-26, Jonaicho 3-chome, Nagaoka-shi, Niigata Prefecture * The Imamura Securities Co., Ltd. 25 Jikkenmachi, Kanazawa-shi, Ishikawa Prefecture * Kabu.com Securities 3-2 Otemachi 1-chome, Chiyoda-ku,Tokyo
Distributor outside Japan
SMBC Nikko Bank (Luxembourg) S.A. (formerly known as Nikko Bank (Luxembourg) S.A.) 9A, rue Robert Stümper, L-2557 Luxembourg
Auditor
PricewaterhouseCoopers S.à r.l., 400, route d’Esch, BP 1443, L-1014 Luxembourg
Page 5 NIKKO MONEY MARKET FUND Mutual Investment Fund
Administration of the Fund (continued)
Legal Advisers
In Luxembourg :
Elvinger, Hoss & Prussen 2, place Winston Churchill, L-2014 Luxembourg
In Japan :
Mori Hamada & Matsumoto Marunouchi Park Building, 6-1 Marunouchi 2-chome, Chiyoda-ku, Tokyo 100-8222, Japan
Page 6 NIKKO MONEY MARKET FUND Mutual Investment Fund
General information
NIKKO MONEY MARKET FUND (hereinafter referred to as the "Fund"), organised in and under the laws of the Grand Duchy of Luxembourg as a mutual investment umbrella fund ("Fonds Commun de Placement à compartiments multiples") is an unincorporated coproprietorship of its securities and other assets, managed in the interest of its co-owners (hereinafter referred to as the “Unitholders”) by SMBC Nikko Investment Fund Management Company S.A. (formerly known as Total Alpha Investment Fund Management Company S.A.) (the “Management Company”), a company incorporated under the laws of Luxembourg and having its registered office in Luxembourg. The assets of the Fund are separate from those of the Management Company and from those of other funds managed by the Management Company.
The Fund is organised in Luxembourg and registered on the official list of collective investment undertakings under part II of the law of December 17, 2010 relating to undertakings for collective investment.
The Fund is organised as an umbrella fund. As at the date of this report, the following five sub-funds are in operation :
* NIKKO MONEY MARKET FUND - US DOLLAR PORTFOLIO (hereinafter referred to as “US Dollar Portfolio”) * NIKKO MONEY MARKET FUND - EURO PORTFOLIO (hereinafter referred to as “Euro Portfolio”) * NIKKO MONEY MARKET FUND - AUSTRALIAN DOLLAR PORTFOLIO (hereinafter referred to as “Australian Dollar Portfolio”) * NIKKO MONEY MARKET FUND - CANADIAN DOLLAR PORTFOLIO (hereinafter referred to as “Canadian Dollar Portfolio”) * NIKKO MONEY MARKET FUND - NEW ZEALAND DOLLAR PORTFOLIO (hereinafter referred to as “New Zealand Dollar Portfolio”)
The Fund is managed by the Management Company in accordance with the Management Regulations, which became effective on January 13, 1992. Amendments to the Management Regulations were published for the last time in the Mémorial on May 25, 2011. The Management Regulations are deposited with the Registre de Commerce et des Sociétés in Luxembourg, where they may be inspected and copies obtained.
The sub-funds are intended to be managed as short-term money market funds as defined by CESR's guidelines (10-049) on a common definition of European money market funds as amended from time to time. Reference to CESR is to the Committee of European Securities Regulators which has been replaced as from 1st January 2011 by the European Securities and Markets Authority (ESMA).
Page 7 NIKKO MONEY MARKET FUND Mutual Investment Fund
General information (continued)
Investment objectives
The investment objective of the US Dollar Portfolio is to seek a stable rate of income in line with money market rates while preserving capital and maintaining liquidity by investing in high grade money market instruments. The Management Company will use its best efforts to maintain the net asset value per unit at 1 US cent. The Fund will invest in U.S. dollar denominated short-term debt securities and instruments such as securities issued or guaranteed by the governments of any OECD country or any local authorities thereof, or such countries' government agencies, commercial paper, banker's acceptance notes, certificates of deposit, fixed time deposits and repurchase agreements. The Fund may also invest in non-U.S. dollar denominated securities and instruments and hedge these investments into U.S. dollars by entering into currency swaps. The Fund will maintain a certain percentage of its assets in securities or money market instruments with overnight maturity which is generally adequate to satisfy repurchase requests. The Fund will, under ordinary circumstances, hold all investments in debt securities to maturity.
The investment objective of the Euro Portfolio is to seek a stable rate of income in line with money market rates while preserving capital and maintaining liquidity by investing in high grade money market instruments. The Management Company will use its best efforts to maintain the net asset value per unit at 1 Euro cent. The Fund will invest in Euro denominated short-term debt secur- ities and instruments such as securities issued or guaranteed by the governments of any OECD country or any local authorities thereof or, such countries' government agencies, commercial paper, banker's acceptance notes, certificates of deposit, fixed time deposits and repurchase agreements. The Fund may also invest in non-Euro denominated securities and instruments and hedge these investments into Euro by entering into currency swaps. The Fund will maintain a certain percentage of its assets in securities or money market instruments with overnight maturity which is generally adequate to satisfy repurchase requests. The Fund will, under ordinary circumstances, hold all investments in debt securities to maturity.
The investment objective of the Australian Dollar Portfolio is to seek a stable rate of income in line with money market rates while preserving capital and maintaining liquidity by investing in high-grade money market instruments. The Management Company will use its best efforts to maintain the net asset value per unit at 1 Australian cent. The Fund will invest in Australian dollar denominated short-term debt secur¬ities and instruments such as securities issued or guaranteed by the governments of any OECD country or any local authorities thereof or, such countries' government agencies, commercial paper, banker's acceptance notes, certificates of deposit, fixed time deposits and repurchase agreements. The Fund may also invest in non-Australian dollar denominated securities and instruments and hedge these investments into Australian dollars by entering into currency swaps. The Fund will maintain a certain percentage of its assets in securities or money market instruments with overnight maturity which is generally adequate to satisfy repurchase requests. The Fund will, under ordinary circumstances, hold all investments in debt securities to maturity.
Page 8 NIKKO MONEY MARKET FUND Mutual Investment Fund
General information (continued)
Investment objectives (continued)
The investment objective of the Canadian Dollar Portfolio is to seek a stable rate of income in line with money market rates while preserving capital and maintaining liquidity by investing in high grade money market instruments. The Management Company will use its best efforts to maintain the net asset value per unit at 1 CA cent. The Fund will invest in Canadian dollar denominated short-term debt securities and instruments such as securities issued or guaranteed by the governments of any OECD country or any local authorities thereof, or such countries' government agencies, commercial paper, banker's acceptance notes, certificates of deposit, fixed time deposits and repurchase agreements. The Fund may also invest in non-Canadian dollar denominated securities and instruments and hedge these investments into Canadian dollars by entering into currency swaps. The Fund will maintain a certain percentage of its assets in securities or money market instruments with overnight maturity which is generally adequate to satisfy repurchase requests. The Fund will, under ordinary circumstances, hold all investments in debt securities to maturity.
The investment objective of the New Zealand Dollar Portfolio is to seek a stable rate of income in line with money market rates while preserving capital and maintaining liquidity by investing in high grade money market instruments. The Management Company will use its best efforts to maintain the net asset value per unit at 1 NZ cent. The Fund will invest in New Zealand dollar denominated short-term debt securities and instruments such as securities issued or guaranteed by the governments of any OECD country or any local authorities thereof, or such countries' government agencies, commercial paper, banker's acceptance notes, certificates of deposit, fixed time deposits and repurchase agreements. The Fund may also invest in non-New Zealand dollar denominated securities and instruments and hedge these investments into New Zealand dollars by entering into currency swaps. The Fund will maintain a certain percentage of its assets in securities or money market instruments with overnight maturity which is generally adequate to satisfy repurchase requests. The Fund will, under ordinary circumstances, hold all investments in debt securities to maturity.
Unitholders’ information
Audited annual reports and unaudited semi-annual reports are made available to the unitholders at no cost to them at the offices of the Management Company, the custodian and any paying agent.
Any other financial information to be published concerning the Fund or the Management Company, including the daily net asset value of the units of the Fund and any suspension of such valuation, are made available to the public at the offices of the Management Company and the custodian.
The latest net assets, issue price, repurchase and conversion price per unit for each sub-fund are available to the public at the offices of the Management Company and the custodian.
All notices to unitholders are sent to their address indicated in the register of unitholders and, to the extent required by the Luxembourg law, are published in the Mémorial.
Upon request to be addressed to the registered office of the Management Company, a statement giving the changes in portfolio investments incurred during the period ended June 30, 2011 can be obtained free of charge.
Page 9 NIKKO MONEY MARKET FUND Mutual Investment Fund
Combined statement of net assets as at June 30, 2011
Combined statement (Expressed in US Dollar)
Combined Notes USD (*)
Assets
Investments At cost 4,228,385,173 At period-end value 2.3 4,238,352,289 Cash at bank 1,152,420,781 Interest receivable on investments 2.6 7,452,353 Interest receivable on cash 2.6 149,573 Other assets 12,960
Total assets 5,398,387,957
Liabilities
Dividend payable 9 8,157,925 Agent securities fee payable 5 3,824,257 Investment advisory fee payable 4 1,034,388 Administration fee payable 7 471,724 Publication expenses payable 410,148 Custodian fee payable 6 314,683 “Taxe d’abonnement” payable 8 135,691 Management fee payable 3 89,565 Professional expenses payable 40,319 Formation expenses payable 7,372
Total liabilities 14,486,073
Total net assets 5,383,901,884
* Note 2.2
The accompanying notes are an integral part of these financial statements.
Page 10 NIKKO MONEY MARKET FUND Mutual Investment Fund
Statement of net assets as at June 30, 2011
US Dollar Portfolio (Expressed in US Dollar)
US Dollar Portfolio Notes USD
Assets
Investments At cost 1,728,391,884 At period-end value 2.3 1,728,877,424 Cash at bank 441,003,895 Interest receivable on investments 2.6 11,646 Interest receivable on cash 2.6 1,198 Other assets 6,018
Total assets 2,169,900,181
Liabilities
Dividend payable 9 217,344 Agent securities fee payable 5 210,198 Investment advisory fee payable 4 114,150 Administration fee payable 7 31,527 Publication expenses payable 155,153 Custodian fee payable 6 21,019 “Taxe d’abonnement” payable 8 54,489 Management fee payable 3 10,509 Professional expenses payable 14,447
Total liabilities 828,836
Total net assets 2,169,071,345
Number of units outstanding 216,907,134,469 Net asset value per unit 0.01
The accompanying notes are an integral part of these financial statements.
Page 11 NIKKO MONEY MARKET FUND Mutual Investment Fund
Statement of net assets as at June 30, 2011
Euro Portfolio (Expressed in Euro)
Euro Portfolio Notes EUR
Assets
Investments At cost 247,750,192 At period-end value 2.3 248,146,915 Cash at bank 59,271,269 Interest receivable on cash 2.6 2,641 Other assets 839
Total assets 307,421,664
Liabilities
Dividend payable 9 189,723 Agent securities fee payable 5 146,659 Investment advisory fee payable 4 101,335 Administration fee payable 7 21,868 Publication expenses payable 24,835 Custodian fee payable 6 14,580 “Taxe d’abonnement” payable 8 7,713 Management fee payable 3 7,206 Professional expenses payable 1,965
Total liabilities 515,884
Total net assets 306,905,780
Number of units outstanding 30,690,577,960 Net asset value per unit 0.01
The accompanying notes are an integral part of these financial statements.
Page 12 NIKKO MONEY MARKET FUND Mutual Investment Fund
Statement of net assets as at June 30, 2011
Australian Dollar Portfolio (Expressed in Australian Dollar)
Australian Dollar Portfolio Notes AUD
Assets
Investments At cost 1,376,903,502 At period-end value 2.3 1,383,463,409 Cash at bank 427,983,926 Interest receivable on investments 2.6 2,603,381 Interest receivable on cash 2.6 116,385 Other assets 4,624
Total assets 1,814,171,725
Liabilities
Dividend payable 9 5,933,888 Agent securities fee payable 5 2,205,515 Investment advisory fee payable 4 484,949 Administration fee payable 7 264,493 Publication expenses payable 136,493 Custodian fee payable 6 176,455 “Taxe d’abonnement” payable 8 45,723 Management fee payable 3 44,111 Professional expenses payable 14,301
Total liabilities 9,305,928
Total net assets 1,804,865,797
Number of units outstanding 180,486,579,657 Net asset value per unit 0.01
The accompanying notes are an integral part of these financial statements.
Page 13 NIKKO MONEY MARKET FUND Mutual Investment Fund
Statement of net assets as at June 30, 2011
Canadian Dollar Portfolio (Expressed in Canadian Dollar)
Canadian Dollar Portfolio Notes CAD
Assets
Investments At cost 28,436,596 At period-end value 2.3 28,472,095 Cash at bank 15,765,104 Interest receivable on cash 2.6 763 Other assets 181
Total assets 44,238,143
Liabilities
Dividend payable 9 16,361 Agent securities fee payable 5 18,912 Investment advisory fee payable 4 13,248 Administration fee payable 7 2,837 Publication expenses payable 3,848 Custodian fee payable 6 1,894 “Taxe d’abonnement” payable 8 1,104 Management fee payable 3 943 Professional expenses payable 231 Formation expenses payable 7,129
Total liabilities 66,507
Total net assets 44,171,636
Number of units outstanding 4,417,163,649 Net asset value per unit 0.01
The accompanying notes are an integral part of these financial statements.
Page 14 NIKKO MONEY MARKET FUND Mutual Investment Fund
Statement of net assets as at June 30, 2011
New Zealand Dollar Portfolio (Expressed in New Zealand Dollar)
New Zealand Dollar Portfolio Notes NZD
Assets
Investments At cost 766,113,640 At period-end value 2.3 768,326,981 Cash at bank 181,258,473 Interest receivable on investments 2.6 5,609,849 Interest receivable on cash 2.6 22,839 Other assets 701
Total assets 955,218,843
Liabilities
Dividend payable 9 1,549,745 Agent securities fee payable 5 1,226,647 Investment advisory fee payable 4 289,136 Administration fee payable 7 147,102 Publication expenses payable 82,833 Custodian fee payable 6 98,139 “Taxe d’abonnement” payable 8 23,949 Management fee payable 3 24,533 Professional expenses payable 8,986
Total liabilities 3,451,070
Total net assets 951,767,773
Number of units outstanding 95,176,777,282 Net asset value per unit 0.01
The accompanying notes are an integral part of these financial statements.
Page 15 NIKKO MONEY MARKET FUND Mutual Investment Fund
Statistical information
US Dollar Euro Australian Dollar Canadian Dollar New Zealand Dollar Portfolio Portfolio Portfolio Portfolio Portfolio
Number of units outstanding at the end of the year /period :
December 31, 2009 178,814,714,466 25,118,736,710 177,305,545,727 2,704,859,200 111,493,400,355 December 31, 2010 195,451,891,959 31,062,797,704 171,001,266,959 3,530,214,299 102,337,098,601
Units issued 114,242,285,282 9,170,738,519 128,833,353,916 1,594,731,908 15,818,970,479 Units redeemed (92,787,042,772) (9,542,958,263) (119,348,041,218) (707,782,558) (22,979,291,798)
June 30, 2011 216,907,134,469 30,690,577,960 180,486,579,657 4,417,163,649 95,176,777,282
Total net assets at the end of the year /period : USD EUR AUD CAD NZD
December 31, 2009 1,788,147,145 251,187,367 1,773,055,457 27,048,592 1,114,934,004 December 31, 2010 1,954,518,919 310,627,977 1,710,012,670 35,302,143 1,023,370,986 June 30, 2011 2,169,071,345 306,905,780 1,804,865,797 44,171,636 951,767,773
Net asset value per unit at the end of the USD EUR AUD CAD NZD year /period :
December 31, 2009 0.01 0.01 0.01 0.01 0.01 December 31, 2010 0.01 0.01 0.01 0.01 0.01 June 30, 2011 0.01 0.01 0.01 0.01 0.01
Page 16 NIKKO MONEY MARKET FUND Mutual Investment Fund
Notes to the financial statements (As of June 30, 2011)
Note 1 - Activity
NIKKO MONEY MARKET FUND (the “Fund”), organised as a mutual investment umbrella fund is an unincorporated coproprietorship of its securities and other assets for an unlimited period. The Fund may be dissolved at any time by mutual agreement between the Management Company and the Custodian or in any cases provided for by Luxembourg law.
The Fund is organized under part II of the Luxembourg law of December 17, 2010.
The assets of the different sub-funds are separately invested in accordance with their respective investment policies and objectives.
The objective of each sub-fund is to earn a high level of income while preserving capital and maintaining liquidity by investing in high-grade money market instruments.
As at June 30, 2011, there are five sub-funds in operation :
* NIKKO MONEY MARKET FUND - US DOLLAR PORTFOLIO (hereinafter referred to as “US Dollar Portfolio”) * NIKKO MONEY MARKET FUND - EURO PORTFOLIO (hereinafter referred to as “Euro Portfolio”) * NIKKO MONEY MARKET FUND - AUSTRALIAN DOLLAR PORTFOLIO (hereinafter referred to as “Australian Dollar Portfolio”) * NIKKO MONEY MARKET FUND - CANADIAN DOLLAR PORTFOLIO (hereinafter referred to as “Canadian Dollar Portfolio”) * NIKKO MONEY MARKET FUND - NEW ZEALAND DOLLAR PORTFOLIO (hereinafter referred to as “New Zealand Dollar Portfolio”)
Note 2 - Significant accounting policies
2.1 - Presentation of financial statements
The financial statements are presented in accordance with Luxembourg regulations relating to undertakings for collective investment.
2.2 - Statements of net assets and of operations and changes in net assets
The combined financial statements of the Fund are expressed in USD. The combined statement of net assets is the sum of the sub-funds net assets converted in USD at exchange rates prevailing at the period-end closing.
Currency Exchange rate EUR 1.4487 AUD 1.0726 CAD 1.0342 NZD 0.8286
Page 17 NIKKO MONEY MARKET FUND Mutual Investment Fund
Notes to the financial statements (continued) (As of June 30, 2011)
Note 2 - Significant accounting policies (continued)
2.3 - Investments in securities
Each sub-fund’s portfolio bonds, debt securities and money market instruments are valued based upon their amortised cost. This involves valuing an investment at its cost and thereafter assuming a constant amortisation to maturity of any discount or premium regardless of the impact of fluctuating interest rates on the market value of the instruments. The amortisation of any discount or premium is included in the statement of changes in net assets under the heading “Change in unrealised appreciation/(depreciation) on investments”. At maturity, the net income realised is included under the heading of “Interest income on investments”.
2.4 - Foreign currency translation
Assets and liabilities expressed in other currencies than the currency of the sub-fund are translated at exchange rates ruling at period-end. Transactions in foreign currencies are translated into the currency of the sub-fund at exchange rates ruling at the transaction dates.
2.5 - Formation expenses
Formation expenses have been fully amortised.
2.6 - Income
Interest income is accrued on a daily basis.
Page 18 NIKKO MONEY MARKET FUND Mutual Investment Fund
Notes to the financial statements (continued) (As of June 30, 2011)
In the following fees related in notes 3 to 7, Gross Yield Less Other Expenses ("GYLOE") means a rate calculated daily by the Management Company, which shall be equal to the gross yield of the respective sub-fund less the rate of daily amortization amount of expenses other than fees payable to the sub-funds’ related parties and "Gross Income Less Other Expenses" (“GILOE”) means an amount, calculated daily by the Management Company, which shall be equal to the difference between (a) the gross income of the sub-fund, including the capital gain/loss on securities, and (b) the daily amortisation amount of expenses other than fees payable to the sub-funds’ related parties.
Note 3 - Management fee
The Management Company is entitled to a fee payable in arrears, out of the assets of each sub-fund, at the end of each quarter calculated as follows: if daily GYLOE is below 1% p.a., the fee payable to the Management Company is 1% of such GILOE. If daily GYLOE is 1% p.a. or above, the fee payable to the Management Company is up to an annual rate of 0.01% of the average daily net asset value of the assets of each sub-fund during the relevant quarter.
Note 4 - Investment advisory fee
The Investment Advisor is entitled to a fee payable in arrears, out of the assets of each sub-fund at the end of each quarter calculated as below. In case daily GYLOE is below 1% p.a., the fee payable to the Investment Advisor is the lower amount of i) 14% of GILOE and ii) GYLOE x 100 multiplied by the fee rates mentioned below. If daily GYLOE is 1.00% p.a. or above, the total fees payable to the Investment Advisor is calculated as below on the basis of the average daily net asset value of each sub-fund during the relevant quarter.
US Dollar Portfolio
Up to 0.15 % up to (and including) USD 200 million; Up to 0.125 % for a portion of more than USD 200 million, to (and including) USD 500 million; Up to 0.10 % for a portion of more than USD 500 million, to (and including) USD 2 billion; and Up to 0.09% for a portion of more than USD 2 billion.
Page 19 NIKKO MONEY MARKET FUND Mutual Investment Fund
Notes to the financial statements (continued) (As of June 30, 2011)
Note 4 - Investment advisory fee (continued) (continued)
Euro Portfolio
Up to 0.15 % up to (and including) EUR 200 million; Up to 0.125 % for a portion of more than EUR 200 million, to (and including) EUR 500 million; Up to 0.10 % for a portion of more than EUR 500 million, to (and including) EUR 2 billion; and Up to 0.09 % for a portion of more than EUR 2 billion.
Australian Dollar Portfolio
Up to 0.15 % up to (and including) AUD 200 million; Up to 0.125 % for a portion of more than AUD 200 million, to (and including) AUD 500 million; Up to 0.10 % for a portion of more than AUD 500 million, to (and including) AUD 2 billion; and Up to 0.09 % for a portion of more than AUD 2 billion.
Canadian Dollar Portfolio
Up to 0.15 % up to (and including) CAD 200 million; Up to 0.125 % for a portion of more than CAD 200 million, to (and including) CAD 500 million; Up to 0.10 % for a portion of more than CAD 500 million, to (and including) CAD 2 billion; and Up to 0.09 % for a portion of more than CAD 2 billion.
New Zealand Dollar Portfolio
Up to 0.15 % up to (and including) NZD 200 million; Up to 0.125 % for a portion of more than NZD 200 million, to (and including) NZD 500 million; Up to 0.10 % for a portion of more than NZD 500 million, to (and including) NZD 2 billion; and Up to 0.09 % for a portion of more than NZD 2 billion.
Note 5 - Agent securities fee
The Agent Securities Company is entitled to a fee payable in arrears, out of the assets of each sub- fund, at the end of each quarter calculated as follows: if daily GYLOE is below 1% p.a., the fee payable to the Agent Securities Company is 20% of such GILOE. If daily GYLOE is 1% p.a. or above, the fee payable is at an annual rate of up to 0.50% of the average daily net asset value of the assets of each sub-fund during the relevant quarter. The distributors in Japan receive any fees payable out of the fee payable to the Agent Securities Company. Any reasonable disbursements and out-of- pocket expenses incurred by the Agent Securities Company are borne by the relevant sub-fund.
Page 20 NIKKO MONEY MARKET FUND Mutual Investment Fund
Notes to the financial statements (continued) (As of June 30, 2011)
Note 6 - Custodian fee
The Custodian is entitled to a fee payable in arrears, out of the assets of each sub-fund, at the end of each quarter calculated as follows: in case daily GYLOE is below 1% p.a., the fee payable to the Custodian is 2% of such GILOE. If daily GYLOE is 1% p.a. or above, the fees payable to the Custodian is up to 0.04% of the average daily net asset value of each sub-fund during the relevant quarter. Any reasonable disbursements and out-of-pocket expenses (including without limitation telephone, cable and postage expenses) incurred by the custodian and any custody charges of banks and financial institutions to whom custody of assets of the Fund is entrusted, are borne by the Fund.
Note 7 - Administration fee
The Administrative Agent, Domiciliary, Registrar and Transfer Agent is entitled to a fee payable in arrears, out of the assets of each sub-fund, at the end of each quarter calculated as follows: in case daily GYLOE is below 1% p.a., the fee payable to the Administrative Agent, Domiciliary, Registrar and Transfer Agent is 3% of such GILOE. If daily GYLOE is 1% p.a. or above, the fees payable are up to 0.06% of the average daily net asset value of each sub-fund during the relevant quarter. Any reasonable disbursements and out-of-pocket expenses (including without limitation telephone, cable and postage expenses) incurred by the Administrative Agent, Domiciliary, Registrar and Transfer Agent are borne by the Fund.
Note 8 - Taxation
The Fund is subject to Luxembourg law in respect of its tax status. Under legislation and regulations currently prevailing in Luxembourg the Fund is subject to a capital tax (the “taxe d’abonnement”) on its net assets at an annual rate of 0.01% calculated and payable quarterly.
Under present law neither the Fund nor the unitholders are subject to any Luxembourg tax on income or capital gains nor to any withholding or estate tax. The Fund collects the income produced by the securities in its portfolio after deduction of any withholding tax in the relevant countries.
Note 9 - Dividend policy
The objective of the Management Company is to maintain each sub-fund’s net asset value per unit at USD 0.01, EUR 0.01, AUD 0.01, CAD 0.01 and NZD 0.01, respectively.
The dividend declared and accrued is paid at the time of the units’ repurchase together with the relevant repurchase price.
Furthermore, on the last business day of each month, in respect of each sub-fund, all dividends declared accrued up to (and including) the day immediately preceding such last business day, and not yet paid are automatically reinvested against issue of further units at the net asset value per unit of the relevant sub-fund applicable on the day immediately preceding such last business day.
Page 21 NIKKO MONEY MARKET FUND Mutual Investment Fund
Statement of investments as at June 30, 2011
US Dollar Portfolio (Expressed in US Dollar)
Period-end Nominal Description Currency Cost Ratio* value
Other debt instruments
A. Certificates of deposit USD USD %
50,000,000 BANK OF TOKYO MITSU ECD 21JUL11 USD 49,960,850 49,990,965 2.30 10,000,000 MIZUHO CORP BANK CD 08JUL11 USD 9,991,287 9,999,234 0.46 50,000,000 SVENSKA HANDLB 0.195 18AUG11 YCD USD 50,000,624 50,000,340 2.31
Total certificates of deposit 109,952,761 109,990,539 5.07
B. Commercial papers USD USD %
10,000,000 AKADEMISKA HUS AB CP 08JUL11 USD 9,991,665 9,999,267 0.46 50,000,000 AKADEMISKA HUS AB CP 11JUL11 USD 49,959,588 49,995,115 2.30 50,000,000 AKADEMISKA HUS AB CP 20JUL11 USD 49,968,423 49,993,060 2.30 40,000,000 AKADEMISKA HUS AB CP 21JUL11 USD 39,975,748 39,994,404 1.84 75,000,000 ANZ BANKING GP CP 31AUG11 USD 74,967,431 74,978,048 3.47 30,000,000 BANK NEDERLANDSE GEMEENT CP 15SEP11 USD 29,987,738 29,989,737 1.39 50,000,000 BANK NEDERLANDSE GEMEENT CP 18JUL11 USD 49,972,210 49,994,505 2.30 75,000,000 BANK NEDERLANDSE GEMEENT CP 27SEP11 USD 74,962,397 74,963,368 3.45 32,000,000 BANK NEDERLANDSE GEMEENT CP 31AUG11 USD 31,984,473 31,989,258 1.47 45,000,000 BNP PARIBAS AUSTRALIA CP 07JUL11 USD 44,965,901 44,997,377 2.08 10,000,000 BNP PARIBAS AUSTRALIA CP 11AUG11 USD 9,993,105 9,996,852 0.46 46,000,000 BNZ INTL FUNDING CP 18JUL11 USD 45,968,046 45,993,680 2.12 31,000,000 BNZ INTL FUNDING CP 20JUL11 USD 30,979,248 30,995,440 1.43 50,000,000 CAISSE AMORT DETTE SOC CP 12SEP11 USD 49,979,146 49,983,040 2.30 35,000,000 CAISSE AMORT DETTE SOC CP 19AUG11 USD 34,989,500 34,992,710 1.61 15,300,000 CAISSE AMORT DETTE SOC CP 19AUG11 USD 15,295,920 15,296,813 0.71 40,000,000 CAISSE DEPOTS CONSIGN ECP 01SEP11 USD 39,978,545 39,985,308 1.85 30,000,000 CAISSE DEPOTS CONSIGN ECP 02SEP11 USD 29,984,675 29,989,338 1.39 80,000,000 CAISSE DEPOTS CONSIGN ECP 25AUG11 USD 79,957,090 79,973,880 3.70 50,000,000 CAISSE DEPOTS CONSIGN ECP 25JUL11 USD 49,983,908 49,993,405 2.30 65,000,000 COMMONWEALTH BK OF AUS CP 07SEP11 USD 64,968,454 64,976,340 3.00 15,000,000 COMMONWEALTH BK OF AUS CP 17AUG11 USD 14,992,720 14,996,202 0.69 25,000,000 CREDIT SUISSE FB AUS FIN CP 28JUL11 USD 24,985,474 24,995,530 1.15 30,000,000 CREDIT SUISSE SYDNEY CP 23AUG11 USD 29,982,377 29,989,656 1.38 25,000,000 FMS WERTMANAGEMENT CP 01SEP11 USD 24,986,591 24,990,818 1.15 40,000,000 FMS WERTMANAGEMENT CP 08AUG11 USD 39,975,992 39,990,040 1.84 65,000,000 FMS WERTMANAGEMENT CP 09AUG11 USD 64,961,817 64,983,399 3.00 50,000,000 FMS WERTMANAGEMENT CP 23AUG11 USD 49,971,139 49,984,626 2.31 20,000,000 FMS WERTMANAGEMENT CP 25AUG11 USD 19,988,762 19,993,160 0.92 75,000,000 NORDEA BANK AB CP 17AUG11 USD 74,967,431 74,983,005 3.47 20,000,000 RABOBANK NEDERLAND AUST CP 08JUL11 USD 19,987,117 19,998,868 0.92 15,000,000 RABOBANK NEDERLAND AUST CP 27JUL11 USD 14,991,474 14,997,470 0.69 25,000,000 SOCIETE GENERALE CP 01JUL11 USD 24,977,590 24,999,765 1.15 20,000,000 SOCIETE GENERALE CP 01SEP11 USD 19,988,251 19,991,954 0.92
(*) Weight of the market value against the total net assets expressed in %.
Page 22 NIKKO MONEY MARKET FUND Mutual Investment Fund
Statement of investments as at June 30, 2011
US Dollar Portfolio (continued) (Expressed in US Dollar)
Period-end Nominal Description Currency Cost Ratio* value
Other debt instruments (continued)
B. Commercial papers (continued) USD USD %
20,000,000 SOUTH AUSTRALIAN GOV FIN CP 15JUL11 USD 19,990,338 19,998,334 0.92 50,000,000 SOUTH AUSTRALIAN GOV FIN CP 15SEP11 USD 49,978,926 49,982,360 2.30 25,000,000 SVENSKA HANDELSBANK CP 24AUG11 USD 24,990,375 24,993,125 1.15 25,000,000 SVENSKA HANDELSBANK CP 28JUL11 USD 24,987,892 24,995,923 1.15 50,000,000 TASMANIAN PUBLIC FIN CP 16AUG11 USD 49,974,458 49,986,950 2.30 20,000,000 TASMANIAN PUBLIC FIN CP 31AUG11 USD 19,990,804 19,993,802 0.92 50,000,000 TREASURY CORP VICTORIA CP 16AUG11 USD 49,977,011 49,988,255 2.30 25,000,000 WESTERN AUSTRALIA TREAS CP 28SEP11 USD 24,988,824 24,989,068 1.16 20,000,000 WESTERN AUSTRALIA TREAS CP 31AUG11 USD 19,990,549 19,993,630 0.92
Total commercial papers 1,618,439,123 1,618,886,885 74.64
Total other debt instruments 1,728,391,884 1,728,877,424 79.71
Total investments 1,728,391,884 1,728,877,424 79.71
(*) Weight of the market value against the total net assets expressed in %.
The accompanying notes are an integral part of these financial statements.
Page 23 NIKKO MONEY MARKET FUND Mutual Investment Fund
Classification of investments
US Dollar Portfolio
Classification of investments by country and by economical sector
Country Economical sector Ratio (%) *
Australia Banks & Other Credit Institutions 16.60 Regional Agencies 10.82 27.42
France Government Agencies 13.86 Banks & Other Credit Institutions 2.07 15.93
Sweden Government Agencies 6.90 Banks & Other Credit Institutions 3.47 10.37
Germany Government Agencies 9.22 9.22
Netherlands Mortgage & Funding Institutions 8.61 8.61
USA Banks & Other Credit Institutions 4.61 4.61
United Kingdom Banks & Other Credit Institutions 3.55 3.55
Total investments 79.71
(*) Weight of the market value against the total net assets expressed in %.
Page 24 NIKKO MONEY MARKET FUND Mutual Investment Fund
Statement of investments as at June 30, 2011
Euro Portfolio (Expressed in Euro)
Period-end Nominal Description Currency Cost Ratio* value
Other debt instruments
A. Certificates of deposit EUR EUR %
10,000,000 HSBC FRANCE CD 27JUL11 EUR 9,970,387 9,991,214 3.26 10,000,000 BNP PARIBAS CD 26JUL11 EUR 9,969,633 9,991,324 3.26
Total certificates of deposit 19,940,020 19,982,538 6.52
B. Commercial papers EUR EUR %
20,000,000 ANZ NATIONAL BANK LTD CP 09AUG11 EUR 19,935,299 19,971,870 6.51 10,000,000 BNP PARIBAS AUSTRALIA CP 17AUG11 EUR 9,966,634 9,982,592 3.25 7,500,000 BNP PARIBAS AUSTRALIA CP 19JUL11 EUR 7,477,507 7,495,304 2.44 20,000,000 CAISSE AMORT DETTE SOC CP 18AUG11 EUR 19,941,394 19,968,786 6.51 18,000,000 DNB NOR BANK ASA CP 14JUL11 EUR 17,950,089 17,992,321 5.85 10,000,000 FMS WERTMANAGEMENT CP 01JUL11 EUR 9,993,820 9,999,706 3.26 20,000,000 FMS WERTMANAGEMENT CP 08SEP11 EUR 19,939,870 19,954,250 6.50 20,000,000 GE CAP EUROPEAN FUNDING CP 21JUL11 EUR 19,941,024 19,986,390 6.51 10,000,000 GE CAP EUROPEAN FUNDING CP 31AUG11 EUR 9,968,665 9,978,883 3.25 10,000,000 KA FINANZ AG CP 28SEP11 EUR 9,967,903 9,968,601 3.25 10,000,000 NORDEA BANK AB CP 11AUG11 EUR 9,967,142 9,984,999 3.25 15,000,000 NORDEA BANK AB CP 24AUG11 EUR 14,952,998 14,971,901 4.88 15,000,000 RABOBANK NEDERLAND AUST CP 09AUG11 EUR 14,952,236 14,979,232 4.88 10,000,000 SOCIETE GENERALE CP 02SEP11 EUR 9,967,142 9,977,142 3.25 13,000,000 SOCIETE GENERALE CP 08AUG11 EUR 12,954,673 12,981,194 4.23 20,000,000 SVENSKA HANDELSBANKEN CP 09AUG11 EUR 19,933,776 19,971,206 6.51
Total commercial papers 227,810,172 228,164,377 74.33
Total other debt instruments 247,750,192 248,146,915 80.85
Total investments 247,750,192 248,146,915 80.85
(*) Weight of the market value against the total net assets expressed in %.
The accompanying notes are an integral part of these financial statements.
Page 25 NIKKO MONEY MARKET FUND Mutual Investment Fund
Classification of investments
Euro Portfolio
Classification of investments by country and by economical sector
Country Economical sector Ratio (%) *
France Banks & Other Credit Institutions 14.00 Government Agencies 6.51 20.51
Sweden Banks & Other Credit Institutions 14.64 14.64
Australia Banks & Other Credit Institutions 10.57 10.57
Germany Government Agencies 9.76 9.76
Ireland Holding & Finance Companies 9.76 9.76
New Zealand Banks & Other Credit Institutions 6.51 6.51
Norway Banks & Other Credit Institutions 5.85 5.85
Austria Mortgage & Funding Institutions 3.25 3.25
Total investments 80.85
(*) Weight of the market value against the total net assets expressed in %.
Page 26 NIKKO MONEY MARKET FUND Mutual Investment Fund
Statement of investments as at June 30, 2011
Australian Dollar Portfolio (Expressed in Australian Dollar)
Period-end Nominal Description Currency Cost Ratio* value
I. Transferable securities admitted to an official Stock Exchange or dealt in on another regulated market
A. Bonds AUD AUD %
15,000,000 HBOS TREASURY SERV FRN 19OCT11 S TD AUD 15,000,000 15,000,000 0.83 4,000,000 HSBC FINANCE CORP FRN 22SEP11 AUD 4,000,400 4,000,019 0.22 15,000,000 MERRILL LYNCH FRN 30NOV11 AUD 15,000,000 15,000,000 0.83
Total bonds 34,000,400 34,000,019 1.88
B. Medium term note AUD AUD %
35,000,000 ASIAN DEV BANK 6 18AUG11 GMTN AUD 35,077,000 35,051,684 1.94 62,852,000 KFW 7.5 26AUG11 MTN AUD 63,274,041 63,096,676 3.49
Total medium term note 98,351,041 98,148,360 5.43
Total transferable securities admitted to an official Stock Exchange or 132,351,441 132,148,379 7.31 dealt in on another regulated market
II. Other debt instruments
A. Commercial papers AUD AUD %
100,000,000 BANK NEDERLANDSE GEMEENT CP 23AUG11 AUD 98,773,236 99,279,940 5.50 50,000,000 BANK NEDERLANDSE GEMEENT CP 24AUG11 AUD 49,390,982 49,635,913 2.75 100,000,000 CAISSE AMORT DETTE SOC CP 09AUG11 AUD 98,800,670 99,478,550 5.51 40,000,000 CAISSE AMORT DETTE SOC CP 15SEP11 AUD 39,518,771 39,597,232 2.19 50,000,000 CAISSE AMORT DETTE SOC CP 20JUL11 AUD 49,404,925 49,869,215 2.76 50,000,000 CAISSE DEPOTS CONSIGN ECP 02SEP11 AUD 49,391,605 49,576,770 2.76 50,000,000 CAISSE DEPOTS CONSIGN ECP 08SEP11 AUD 49,389,112 49,535,195 2.75 40,000,000 CAISSE DEPOTS CONSIGN ECP 15SEP11 AUD 39,518,272 39,596,816 2.19 50,000,000 FMS WERTMANAGEMENT CP 08AUG11 AUD 49,381,090 49,743,220 2.76 40,000,000 FMS WERTMANAGEMENT CP 09AUG11 AUD 39,515,279 39,789,252 2.20 35,000,000 FMS WERTMANAGEMENT CP 19AUG11 AUD 34,566,270 34,764,279 1.93 40,000,000 FMS WERTMANAGEMENT CP 22AUG11 AUD 39,494,687 39,715,088 2.20 68,000,000 NATIONAL AUSTRALIA BANK CP 07SEP11 AUD 67,164,105 67,373,081 3.73 75,000,000 NESTLE AUSTRALIA CP 18JUL11 AUD 74,095,357 74,821,058 4.15 28,000,000 NESTLE AUSTRALIA CP 20JUL11 AUD 27,665,030 27,926,380 1.55 40,000,000 NESTLE AUSTRALIA CP 26AUG11 AUD 39,506,303 39,694,124 2.20 20,000,000 RABOBANK NEDERLAND AUST CP 23AUG11 AUD 19,754,897 19,856,134 1.10 50,000,000 TOYOTA FIN AUSTRALIA CP 16SEP11 AUD 49,372,909 49,468,335 2.74 75,000,000 TOYOTA FIN AUSTRALIA CP 19SEP11 AUD 74,025,820 74,160,548 4.12 7,000,000 UBS AG LONDON CP 07SEP11 AUD 6,912,382 6,934,286 0.38 14,000,000 UBS AG LONDON CP 18AUG11 AUD 13,825,636 13,907,132 0.77
Total commercial papers 1,009,467,338 1,014,722,548 56.24
(*) Weight of the market value against the total net assets expressed in %.
Page 27 NIKKO MONEY MARKET FUND Mutual Investment Fund
Statement of investments as at June 30, 2011
Australian Dollar Portfolio (continued) (Expressed in Australian Dollar)
Period-end Nominal Description Currency Cost Ratio* value
II. Other debt instruments (continued)
B. Certificates of deposit AUD AUD %
45,000,000 BANK OF TOKYO MITSUBISHI CD 29JUL11 AUD 44,480,267 44,826,754 2.48 15,000,000 BNP PARIBAS CD 27JUL11 AUD 14,820,367 14,946,702 0.83 23,000,000 MIZUHO CORP BANK CD 05SEP11 AUD 22,707,104 22,791,234 1.26 62,000,000 MIZUHO CORP BANK CD 27JUL11 AUD 61,251,397 61,777,885 3.42 43,000,000 SUMITOMO MITSUI BANK CD 24AUG11 AUD 42,456,416 42,675,032 2.36 50,000,000 SUMITOMO MITSUI BANK CD 31AUG11 AUD 49,369,172 49,574,875 2.75
Total certificates of deposit 235,084,723 236,592,482 13.10
Total other debt instruments 1,244,552,061 1,251,315,030 69.34
Total investments 1,376,903,502 1,383,463,409 76.65
(*) Weight of the market value against the total net assets expressed in %.
The accompanying notes are an integral part of these financial statements.
Page 28 NIKKO MONEY MARKET FUND Mutual Investment Fund
Classification of investments
Australian Dollar Portfolio
Classification of investments by country and by economical sector
Country Economical sector Ratio (%) *
Australia Banks & Other Credit Institutions 17.10 Foodstuffs & Non-Alcoholic Drinks 7.90 Road Vehicles 6.86 31.86
France Government Agencies 18.16 Banks & Other Credit Institutions 0.83 18.99
Germany Government Agencies 9.09 Banks & Other Credit Institutions 3.49 12.58
Netherlands Mortgage & Funding Institutions 8.25 8.25
United Kingdom Banks & Other Credit Institutions 1.98 1.98
Philippine Supra-National Institution 1.94 1.94
USA Holding & Finance Companies 1.05 1.05
Total investments 76.65
(*) Weight of the market value against the total net assets expressed in %.
Page 29 NIKKO MONEY MARKET FUND Mutual Investment Fund
Statement of investments as at June 30, 2011
Canadian Dollar Portfolio (Expressed in Canadian Dollar)
Period-end Nominal Description Currency Cost Ratio* value
I. Transferable securities admitted to an official Stock Exchange or dealt in on another regulated market
Bonds CAD CAD %
8,000,000 CANADA T-BILL 0.00 04AUG11 SER364 CAD 7,989,510 7,993,039 18.09 4,500,000 CANADA T-BILL 0.00 07JUL11 SER364 CAD 4,488,908 4,499,207 10.19 8,000,000 CANADA T-BILL 0.00 21JUL11 CAD 7,978,800 7,995,592 18.10
Total bonds 20,457,218 20,487,838 46.38
Total transferable securities admitted to an official Stock Exchange or 20,457,218 20,487,838 46.38 dealt in on another regulated market
II. Other debt instruments
Commercial papers CAD CAD %
5,000,000 BANK NEDERLANDSE GEMEENT CP 09SEP11 CAD 4,987,254 4,990,164 11.30 3,000,000 UBS AG LONDON CP 07SEP11 CAD 2,992,124 2,994,093 6.78
Total commercial papers 7,979,378 7,984,257 18.08
Total other debt instruments 7,979,378 7,984,257 18.08
Total investments 28,436,596 28,472,095 64.46
(*) Weight of the market value against the total net assets expressed in %.
The accompanying notes are an integral part of these financial statements.
Page 30 NIKKO MONEY MARKET FUND Mutual Investment Fund
Classification of investments
Canadian Dollar Portfolio
Classification of investments by country and by economical sector
Country Economical sector Ratio (%) *
Canada Central Government - Debt Issues 46.38 46.38
Netherlands Mortgage & Funding Institutions 11.30 11.30
United Kingdom Banks & Other Credit Institutions 6.78 6.78
Total investments 64.46
(*) Weight of the market value against the total net assets expressed in %.
Page 31 NIKKO MONEY MARKET FUND Mutual Investment Fund
Statement of investments as at June 30, 2011
New Zealand Dollar Portfolio (Expressed in New Zealand Dollar)
Period-end Nominal Description Currency Cost Ratio* value
I. Transferable securities admitted to an official Stock Exchange or dealt in on another regulated market
Medium term note NZD NZD %
36,955,000 BANK NEDERL GEM 6.75 21SEP11 EMTN NZD 37,316,049 37,273,515 3.92 15,000,000 BANK OF AMERICA CORP FRN 08MAR12 NZD 15,000,000 15,000,000 1.58 30,000,000 BANK OF IRELAND FRN 01JUL11 NZD 29,997,800 29,999,999 3.15 20,000,000 COMMONWEALTH BK AUST FRN 04DEC11 NZD 20,000,000 20,000,000 2.10 53,404,000 EIB 7 18JAN12 EMTN NZD 54,651,639 54,522,608 5.73 4,697,000 IBRD 3.72 20JUL11 GDIF NZD 4,700,333 4,697,274 0.49 7,813,000 IBRD 4.44 20JUL11 GDIF NZD 7,838,392 7,820,360 0.82 6,800,000 INTER AMERICAN DEV BK 6.125 19JUL11 NZD 6,874,715 6,810,283 0.72 4,219,000 INTER AMERICAN DEV BK 6.25 25AUG11 NZD 4,261,190 4,241,718 0.45 36,416,000 KFW 6.5 15NOV11 NZD 37,107,903 36,783,241 3.85
Total medium term note 217,748,021 217,148,998 22.81
Total transferable securities admitted to an official Stock Exchange or 217,748,021 217,148,998 22.81 dealt in on another regulated market
II. Other debt instruments
Commercial papers NZD NZD %
50,000,000 ANZ BANKING CP 06JUL11 NZD 49,668,544 49,978,144 5.25 50,000,000 BANK NEDERLANDSE GEMEENT CP 14JUL11 NZD 49,671,040 49,949,390 5.25 50,000,000 CAISSE AMORT DETTE SOC CP 20JUL11 NZD 49,674,782 49,928,525 5.25 30,000,000 CAISSE AMORT DETTE SOC CP 26JUL11 NZD 29,805,243 29,944,356 3.15 65,000,000 DNB NOR BANK ASA CP 01JUL11 NZD 64,577,217 64,995,353 6.82 28,000,000 DNB NOR BANK ASA CP 28JUL11 NZD 27,818,227 27,944,070 2.94 52,000,000 RABOBANK NEDERLAND AUST CP 09AUG11 NZD 51,650,869 51,848,202 5.45 40,000,000 RABOBANK NEDERLAND AUST CP 27JUL11 NZD 39,736,333 39,921,768 4.19 50,000,000 TASMANIAN PUBLIC FIN CP 15JUL11 NZD 49,676,030 49,946,600 5.25 30,000,000 TASMANIAN PUBLIC FIN CP 18JUL11 NZD 29,804,121 29,961,255 3.15 15,000,000 TASMANIAN PUBLIC FIN CP 19JUL11 NZD 14,903,183 14,979,786 1.57 18,000,000 UBS AG LONDON CP 09AUG11 NZD 17,877,559 17,946,765 1.89 30,000,000 UBS AG LONDON CP 18AUG11 NZD 29,797,444 29,892,117 3.14 44,000,000 UBS AG LONDON CP 18JUL11 NZD 43,705,027 43,941,652 4.62
Total commercial papers 548,365,619 551,177,983 57.92
Total other debt instruments 548,365,619 551,177,983 57.92
Total investments 766,113,640 768,326,981 80.73
(*) Weight of the market value against the total net assets expressed in %.
The accompanying notes are an integral part of these financial statements.
Page 32 NIKKO MONEY MARKET FUND Mutual Investment Fund
Classification of investments
New Zealand Dollar Portfolio
Classification of investments by country and by economical sector
Country Economical sector Ratio (%) *
Australia Banks & Other Credit Institutions 16.99 Regional Agencies 9.97 26.96
Norway Banks & Other Credit Institutions 9.76 9.76
United Kingdom Banks & Other Credit Institutions 9.65 9.65
Netherlands Mortgage & Funding Institutions 9.17 9.17
France Government Agencies 8.40 8.40
Luxembourg Supra-National Institution 5.73 5.73
USA Supra-National Institution 2.48 Banks & Other Credit Institutions 1.58 4.06
Germany Banks & Other Credit Institutions 3.85 3.85
Ireland Banks & Other Credit Institutions 3.15 3.15
Total investments 80.73
(*) Weight of the market value against the total net assets expressed in %.
Page 33