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, via a more sustainable portfolio that supports environmental objectives.
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, positive cash flows through sustainable business practices. 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.
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.
The NFI – US High Yield Bond Continuum Fund targets attractive risk-adjusted returns delivered through both income and capital gains.
USD 11.7 million (as at 31.10.2023)
Nomura Asset Management U.K. Ltd.
|Lead Fund Manager||
Steve Kotsen, CFA, Managing Director und Portfolio Manager,
ICE BofA US High Yield Constrained Index
Ireland (Nomura Funds Ireland Plc)