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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. The fund further demonstrates our commitment to enable clients to tackle the ongoing challenge of low yields and volatile markets.

 

NCRAM: Our Specialist Credit Research Investment Boutique

The Nomura Euro High Yield Bond Strategy 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 Steven Rosenthal, 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 and our Euro strategy has consistently outperformed each year since inception.
  • Our Euro High Yield strategy 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/Euro high yield management allows us to identify significant $/€ mispricings within roughly 1/3 of the Euro market which also issues in dollars.

 

For further information regarding NCRAM and the European High Yield Bond strategy please visit NCRAM’s website. http://www.nomura.com/ncram/ (Please note that the link will access a website for contents of which we take no responsibility and to which our data protection rules do not apply.)  

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 375.5 million (as of 30.09.2019)

Investment Company

Nomura Asset Management U.K. Ltd.

Fund Managers
rosenthal

Steven Rosenthal, CFA, Portfolio Manager, Nomura Corporate Research and Asset Management Inc.

 

Launch Date

08.11.2017

Base Currency

EUR

Sector

Fixed Income – European High Yield

Benchmark

BofA Merrill Lynch European Currency High Yield Constrained Index

Domicile

Ireland (Nomura Funds Ireland Plc)

Others

Further information can be found on the website of Nomura Asset Management U.K. Ltd. (You will leave the website of Nomura Asset Management Europe KVG mbH and will switch to the website of Nomura Asset Management U.K. Ltd.)

Fund Annual
Report
Semi-annual
Report
Fact
Sheet
Sales
Prospectus
KIID
U.K. / English
Class A EUR
Class A EUR Hdg
Class A USD
Class A USD Hdg
Class I EUR
Class I EUR Hdg
Class I USD
Class I USD Hdg

Prospectus Nomura Funds Ireland plc: as per 02. April 2019

Share classes without a KIID are not yet active but could be launched on request within a short period of time.

As per 30. September 2019

A complete overview of all available share classes of the fund as well as further information can be found on the website of Nomura Asset Management U.K. Ltd. (You will leave the website of Nomura Asset Management Europe KVG mbH and will switch to the website of Nomura Asset Management U.K. Ltd.)