Nomura Funds Ireland – Corporate Hybrid Bond Fund
Overview
Corporate Hybrid Bonds are a growing (and under-invested) asset class; it offers attractive, high yield-like income and total return levels. Our active approach is led by industry veteran Julian Marks, a pioneer of institutional investment in Corporate Hybrid Bonds.
Our approach
- Actively managed, fundamentals-based credit research drives portfolio construction.
- Particular focus on bond structure and the probability of calls being honoured.
- Exclude issuers with materially high sustainability risks based on our proprietary credit ESG scores. Also exclude tobacco producers, controversial weapons, and companies without greenhouse gas (GHG) reduction plans.
- The portfolio is concentrated and focused on issuers the team believes as ‘best ideas’, typically, 40 to 50 issuers and 6 to 9 industries.
- Currency risk hedged.
Reasons to invest
- Attractive yield levels, given currently historically low default rates.
- Active, long-term, fundamentals-based investment approach, implemented by an experienced team.
- SFDR* Classification: Article 8.
*EU Sustainable Finance Disclosure Regulation.
Further details of the sustainability strategy are described in the tab “Sustainability-related disclosure”.
Potential significant risks
Corporate hybrid bonds are more volatile than senior bonds of the same issuers. However, credit default risk is the primary concern, which is partly mitigated by the strength of the issuers and is limited further through our security selection process. Corporate Hybrids are frequently confused with contingent convertible (Coco) bonds, which are issued by banks, but feature none of the write-down clauses or regulatory concerns of that bond type. Currency risk is hedged to within small tolerances.
Sustainability information from investee companies and third-party data providers may be incomplete, inaccurate or unavailable. As a result, there is a risk that we may incorrectly assess a security or issuer, resulting in the incorrect inclusion or exclusion of a security in the portfolio.
Investment Objective |
The investment objective of the Sub-Fund is to achieve an attractive level of total return (income plus capital appreciation) through investment primarily in corporate hybrid bonds. |
Fund Size |
EUR 474.6 million (as at 31.10.2025) |
Investment Manager |
Nomura Asset Management U.K. Ltd. |
Lead Fund Manager |
Julian Marks, CFA Kapish Patel, CFA |
Launch Date |
09.08.2023 |
Base Currency |
EUR |
Universe |
Morningstar category: EUR Subordinated Bond |
Benchmark |
ICE BofA Global Hybrid Non-Financial 5% Constrained Custom Index (Total Return, Euro, Hedged) |
Domicile |
Ireland (Nomura Funds Ireland plc) |
| Fund | Monthly Factsheet | |||||
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| Class I EUR |
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| Class I USD Hedged |
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| Class I GBP Hedged |
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| Class A EUR |
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| Class A USD | ||||||
| Class A GBP |
For a full list of available share class documents including PRIIPs KIDs, please visit our fund documents page.
The lead share class fund literature is shown first in the above list. If any literature is not available in the above list for the share class you are invested in/interested in, please contact [email protected]
Corporate Hybrid Bonds White Paper
Julian Marks, CFA – Head of Hybrid Bonds,
Kapish Patel, CFA – Portfolio Manager, Hybrid Bonds
Nomura Asset Management U.K. Limited
June 2025
Nomura Funds Ireland plc is an open-ended investment company with variable capital, incorporated in Ireland on 13th April, 2006 under the Act with registration number 418598. The Fund has been authorised by the Central Bank as an UCITS pursuant to the UCITS Regulations. The Fund is structured as an umbrella fund consisting of different Sub-Funds each comprising one or more Classes. The Fund has segregated liability between each of its Sub-Funds.
Full information on the presented funds, which is relevant for an investment decision, can be found in the fund´s most recent sales prospectus, key information document (PRIIPs KID), key investor information document (UCITS KIID) – as appropriate for your relevant jurisdiction – and annual and semi-annual reports. The UCITS KIIDs are available in English and, for the PRIIPs KIDs, in the official language of the countries in which the fund is registered for distribution. Performance in the past is no guarantee of future success. There can be no guarantee that the fund´s investment objective will actually be achieved.
A summary of investor rights in English and information on collective redress mechanisms are available at https://www.nomura-asset.co.uk/download/funds/how-to-invest/Summary_of_investor_rights.pdf . Nomura Asset Management U.K. Limited may at any time decide to terminate arrangements it may have made for the marketing of units of a fund in a member state other than its home member state.
