Nikko Asset Management Adds to UCITS Range With Global Credit Fund

Aug 1 2016 | 8:09pm ET

Nikko Asset Management has unveiled a new UCITS-compliant global credit fund that will target an absolute return of 4% and an excess return of 1.5% against the benchmark Barclays Global Aggregate Corporate Index.

The new fund, named the Global Credit UCITS Fund, will launch on August 3 and will be domiciled in Luxembourg as a subfund of the company’s SICAV, the company said. It will invest primarily in global corporate bonds and will hold 70-120 issues at any given time, actively selected through fundamental research. 

The fund will be managed by former Lazard Asset Management execurtive Holger Mertens, who joined Nikko in 2015. He will be supported by Nikko’s credit teams in London, Tokyo, Singapore, Sydney, Auckland and New York, according to the company. 

The launch is the latest in a string of UCITS-compliant funds for Nikko over the past several quarters. The firm debuted its Japan Focus Equity UCITS fund in February, and launched global equity and multi-asset UCITS funds in 2015.

“We are launching the fund in response to investor need for consistent and sufficient returns in a low yield environment through a diversified and high quality credit portfolio,” commented Andre Severino, Nikko AM’s head of global fixed income, in a Citywire article. “The need is increasing for a highly skilled active fund management team with truly global resources, and experience in different regions of the world.”

Based in Tokyo, Nikko Asset Management managed more than $154 billion in assets under management as of March 31, 2016. 

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