Nomura Funds Ireland –
European High Yield Bond Fund
Benefit from strong yields of European High Yield Bonds
Nomura Funds Ireland – European High Yield Bond Fund
European High Yield Bond Strategy
Our European High Yield Bond Fund sits alongside and complements our market-leading US and Global High Yield strategies.
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 Derek Leung, 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.
- Our European 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/European 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 | EUR 396.4 million (as at 31.03.2024) |
| Investment Company | Nomura Asset Management U.K. Ltd. |
| Lead Portfolio Manager | Derek Leung, CFA, Portfolio Manager, |
| 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 |
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|---|---|---|---|---|---|
| Class I EUR |
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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]
Fund Snapshot: This document was prepared by Nomura Asset Management Europe KVG mbH, from sources it reasonably believes to be accurate.
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.
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 in securities of distressed entities m involve sudden and erratic price movements and volatility.
