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Nomura Funds Ireland – Global High Yield Bond Fund

Global High Yield Bond Strategy

Our Ireland domiciled Nomura Funds Ireland – Global High Yield Bond Fund seeks to capture the global high yield bond market’s attractive total returns while minimizing losses. We invest primarily in fixed income securities of US corporate and European corporate which are rated in the lower rating categories of the established rating services or are unrated securities of comparable quality. The strategy follows a consistent global approach that allows the exploitation of different spreads of a company in different currencies. The strategy is based on the very successful analysis approach for US High Yields, which was broadened to Global High Yields in 2014 and has been applied for many years by Nomura Corporate Research and Asset Management Inc. (“NCRAM”), a Nomura Asset Management affiliate.

NCRAM: Our Specialist Credit Research Investment Boutique

The Nomura Global High Yield Bond strategy is managed by Nomura Corporate Research and Asset Management Inc. (“NCRAM”), a Nomura Asset Management 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

  • Total return approach.
  • Bottom up, fundamentally driven, credit intensive research analysis.
  • Attempt to avoid credit losses.
  • Seek opportunistic credit quality positioning during the various phases of the credit and economic cycles.
  • Diversified portfolio of issuers.
  • Disciplined risk management through sector/industry limits and individual holdings limits.

A combination of top down and bottom up analysis is used to identify higher quality names with strong and improving credit fundamentals.

  • Target allocation of roughly 75% US High Yield and 25% Euro High Yield.
  • Ability to make tactical shifts to anticipate key opportunities or risks across the developed market regions.
  • Credit picking within each region is based on a proven investment process.
  • Nomura has a large team of global high yield investment professionals. Analysts are industry experts and actively involved in the investment decision making process.

Awards and Ratings

Morningstar Overall Ratings as at 31-08-2021. Copyright © 2021 Morningstar UK Limited. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Morningstar rating based on the lead share class: Nomura Funds Ireland – Global High Yield Bond Fund I USD.

 

Potential significant risks
High Yield bonds are exposed to price risk due to changes in the credit spread caused either by improving or worsening credit quality or due to changes in the market sentiment. Moreover, the bonds are exposed to non-negligible credit default risk. The exposure to the traditional duration risk, i.e. to changes in the underlying government bond yield curve, is in contrast much smaller and usually negatively correlated with the credit risks. Due to its global investment approach part of the portfolio is exposed to currency risk versus the base currency of the fund.

Investment Objective

To achieve current yield and capital gains, through investment in a diversified portfolio of primarily high yielding debt securities from global issuers denominated in mostly Dollars and Euros as well as other currencies. A combination of top down and bottom up analysis is used to identify higher quality names with strong and improving credit fundamentals.

Fund Size

USD 38.0 million (as at 30.09.2021)

Investment Company

Nomura Asset Management U.K. Ltd.

Lead Portfolio Manager

david-crallDavid Crall, CFA, CEO, CIO and Managing Director, Nomura Corporate Research and Asset Management Inc.

Launch Date

14.04.2014

Base Currency

USD

Universe Sector

Morningstar Universe: Global High Yield

IA Sector: Global Bonds

Benchmark

ICE BofA Merrill Lynch Developed Markets High Yield Constrained Index

Domicile

Ireland (Nomura Funds Ireland Plc)

Lead ISINs

I USD: IE00BK0SCX03

I USD Hedged: IE00BYNJKC39

I GBP Hedged: IE00BYNJKC39

ID EUR: IE00BD41S610

A EUR: IE00BK0SCT66

A EUR Hedged: IE00BK0SCT66

For additional share class information, please contact us.

 

Fund Monthly
Factsheet
Fund
Snapshot
Class I USD

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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