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.
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).
EUR 369.3 million (as at 31.10.2023)
Nomura Asset Management U.K. Ltd.
|Lead Portfolio Manager||
Derek Leung, CFA, Portfolio Manager,
Morningstar Universe: European High Yield
ICE BofA European Currency High Yield Constrained Index
Ireland (Nomura Funds Ireland plc)
I EUR: IE00BF4KRQ58
I GBP Hedged: IE00BF4KRT89
For additional share class information, please contact us.
|Class I EUR|
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.