Nomura Funds Ireland – Emerging Market Local Currency Debt Fund
Overview
The NFI – Emerging Market Local Currency Debt Fund seeks attractive returns by investing in local currency denominated debt securities from emerging economies.
The fund invests mainly in bonds from sovereign, quasi-sovereign and supranational issuers. Our top-down- oriented investment process focuses mainly on macro risks (currencies, interest rates) and aims to exploit the return and diversification potential of different EM local currency bonds and currencies. We aim to outperform the benchmark over the cycle while having lower volatility and maximum drawdown.
Our approach
- Quality-conscious: Our philosophy of “value instead of carry” emphasises interest rate and currency risk as management focus rather than credit risk.
- Top-down investment process: Our investment process is top-down-oriented, mainly focusing on macroeconomic risks.
- Balanced value added: We follow a total return approach that seeks value from interest income, capital appreciation and currency management.
- Sharpe ratio-oriented: Our holistic risk management aims to smooth volatility and drawdown to achieve an optimal risk-adjusted return.
- ESG-integration: A quantitative and qualitative ESG overlay is applied to monitor political risks and improve the fund’s risk profile.
- Truly active management: We are high-conviction investors and also look for opportunities beyond our benchmark.
Reasons to invest
- Our experienced investment team’s positive track record for this strategy goes back to 2015.
- The fund offers a compelling risk-return profile with one of the lowest drawdowns and competitive returns.
- We are truly active managers; often contrarian, mostly conviction-based and our investment universe is not restricted by our benchmark – we also take positions in off-benchmark markets.
SFDR* Classification: Article 6.
* EU Sustainable Finance Disclosure Regulation.
Potential significant risks
Investing in emerging markets is considered speculative and involves risks and considerations not typically associated with other more established economies or securities markets, including, but not limited to, greater price volatility, substantially less liquidity, significantly smaller securities market capitalization, social and political instability and limited regulation. Investment in sovereign debt includes the risk that the governmental entity that controls its repayment may not be able or willing to repay the principal and / or interest due to economic and or political constraints. Investment in high yield securities generally entails increased interest rate, credit, liquidity and market risk. Investment in non-investment grade securities may subject the fund to heightened litigation risks and / or prevent their disposal.
Investment Objective |
Our Emerging Market local currency bond product with dynamically managed FX exposure vs. USD uses an “active value”, benchmark-cognizant approach to generate superior risk-adjusted returns. We research global and local influences on EM currencies and debt and then seek and exploit opportunities we find in both currency and duration positions. |
Fund Size |
USD 13.6 million (as at 30.12.2025) |
Investment Manager |
Nomura Asset Management U.K. Ltd. |
Fund Management |
Dr. Recai Günesdogdu, |
Launch Date |
27.02.2015 |
Base Currency |
USD |
Universe |
Morningstar category: Global Emerging Markets Bond – Local Currency IA Sector: Global Emerging Markets Bond – Local Currency |
Benchmark |
JPM GBI-EM Global Diversified Composite Unhedged USD |
Domicile |
Ireland |
Lead ISINs |
I USD: IE00BSJCG374 F GBP: IE00BMWHQW67 For additional share class information, please contact us. |
| Fund | Monthly Factsheet | |||||
|---|---|---|---|---|---|---|
| Class I USD |
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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]
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.
OECD Governments (provided the relevant issues are investment grade), Government of Singapore, Government of the People’s Republic of China, Government of Brazil (provided the issues are of investment grade), Government of India provided the issues are of investment grade), European Investment Bank, European Bank for Reconstruction and Development, International Finance Corporation, International Monetary Fund, Euratom, The Asian Development Bank, European Central Bank, Council of Europe, Eurofima, African Development Bank, International Bank for Reconstruction and Development (The World Bank), The Inter American Development Bank, European Union, Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac), Government National Mortgage Association (Ginnie Mae), Student Loan Marketing Association (Sallie Mae), Federal Home Loan Bank, Federal Farm Credit Bank, Tennessee Valley Authority.
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.
