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Nomura Funds Ireland – European High Yield Bond Fund

European High Yield Bond Fund

Our European High Yield Bond Fund sits alongside and complements our market-leading US and Global High Yield strategies. The fund further demonstrates our commitment to enable clients to tackle the ongoing challenge of low yields and volatile markets.

NCRAM: Our Specialist Credit Research Investment Boutique

The Nomura Euro High Yield Bond Fund is managed by Nomura Corporate Research and Asset Management Inc. (“NCRAM”), a NAM affiliate. NCRAM was established in 1991 and is an analyst-driven investment boutique that specialises in below investment-grade credit.

The “Strong Horse” Philosophy

We believe a total return approach driven by credit research is the best way to generate alpha in high yield. We describe our investment philosophy as the “Strong Horse” philosophy.

Strong Horse companies can carry their debt load through good times and bad. These companies generally have a positive ability to de-lever their balance sheet by generating strong, positive cash flows that are sustainable. The creditworthiness of these companies tends to increase over time, as will their credit ratings.

Our Investment Approach

Fund Manager Steven Rosenthal, CFA, employs a combination of top down and bottom up analysis to identify European high yield issuers with strong and improving credit fundamentals, in summary:

  • We seek to outperform in all market environments and our Euro strategy has consistently outperformed each year since inception.
  • Our Euro High Yield fund has the flexibility to invest opportunistically throughout the high yield credit spectrum.
  • Our significant experience managing through several credit cycles as a team allows us to respond actively to changing market conditions.
  • Credit selection is our main driver of alpha generation. This comes from both identifying the best long ideas as well as avoiding mistakes.
  • We believe that our integrated US/Euro high yield management allows us to identify significant $/€ mispricings within roughly 1/3 of the Euro market which also issues in dollars.
Potential significant risks
Bonds that produce a higher level of income usually also carry greater risk as such bond issuers may have difficulty in paying their debts.

Investment Objective

To achieve current yield and capital gains, through investment in a diversified portfolio of primarily high yielding Debt and Debt-Related Securities issued in European currencies (principally EUR and GBP).

Fund Size

USD 513.3 million (as of 30.09.2021)

Investment Company

Nomura Asset Management U.K. Ltd.

Lead Portfolio Manager
rosenthal

Steven Rosenthal, CFA, Portfolio Manager, Nomura Corporate Research and Asset Management Inc.

Launch Date

08.11.2017

Base Currency

EUR

Universe Sector

Morningstar Universe: European High Yield

Benchmark

ICE BofA European Currency High Yield Constrained Index

Domicile

Ireland (Nomura Funds Ireland Plc)

Lead ISINs

I EUR: IE00BF4KRQ58

I GBP Hedged: IE00BF4KRT89

For additional share class information, please contact us.

 

Fund Monthly
Factsheet
Fund
Snapshot
Class I EUR

For a full list of available share class documents including KIIDs, 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 NAMupdates@nomura-asset.eu

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Important Disclosures 

 

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