Nomura Funds Ireland –
US High Yield Bond Continuum Fund
An Art. 8 fund targeting attractive yields
and strong risk-adjusted returns
Nomura Funds Ireland – US High Yield Bond Continuum Fund
US High Yield Bond Continuum Strategy
The US High Yield Bond Continuum Fund seeks to deliver attractive yield and risk-adjusted returns, as well as keeping the portfolio-level greenhouse gas intensity below that of its broad market benchmark.
NCRAM: Our Specialist Credit Research Investment Boutique
The Nomura Funds Ireland – US High Yield Bond Continuum Fund 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.
Benefits and Differentiators
The “Strong Horse” Philosophy
NCRAM believes a total return approach driven by 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 and positive cash flows. The creditworthiness of these companies tends to increase over time, as will their credit ratings.
Our Investment Approach
- Fundamentally driven, credit intensive research analysis. Sustainability analysis is a critical component of credit selection.
- Credit selection is our main driver of alpha generation. This comes from both identifying the best long ideas as well as avoiding mistakes. Top down positioning is a secondary alpha engine.
- The Fund seeks to promote certain environmental characteristics with a binding constraint on carbon emissions.
- Diversified portfolio of issuers.
- Disciplined risk management.
- SFDR* Classification: Article 8
*EU Sustainable Finance Disclosure Regulation.
Further details of the sustainability strategy are described in the tab “Sustainability-related disclosure”.
Potential Significant Risks
Investment in high yield securities generally entails increased interest rate, credit, liquidity and market risk. The Sub-Fund may hold non-investment grade securities of companies involved in bankruptcy proceedings, reorganisations and financial restructurings. The market prices of such investments are subject to sudden and erratic changes as well as above average price volatility.
Investment Objective |
The NFI – US High Yield Bond Continuum Fund targets attractive risk-adjusted returns delivered through both income and capital gains. |
Fund Size |
USD 13.5 million (as at 31.08.2024) |
Investment Company |
Nomura Asset Management U.K. Ltd. |
Lead Fund Manager |
Steve Kotsen, CFA, Managing Director und Portfolio Manager, |
Launch Date |
23.08.2023 |
Base Currency |
USD |
Benchmark |
ICE BofA US High Yield Constrained Index |
Domicile |
Ireland (Nomura Funds Ireland Plc) |
The EU Sustainable Finance Disclosure Regulation (“SFDR”) requires investment firms to formalise how sustainability is integrated into their business and processes, and to make public and client-facing disclosures on sustainability matters. The aforementioned disclosures relating to Nomura Asset Management U.K. Limited are published on our website at https://www.nomura-asset.co.uk/responsible-investment/esg-sustainable-investment/. Product related disclosures regarding Nomura Funds Ireland plc and its sub-funds can be found in the prospectus. Nomura Funds Ireland – US High Yield Bond Continuum Fund is an Art. 8 fund according to SFDR.
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.
