Nomura Asset Management Launches Second UCITS-Compliant U.S. HY Bond Fund

Oct 31 2016 | 7:58pm ET

The U.K. affiliate of global investment manager Nomura Asset Management has launched a new UCITS-compliant fund that will focus on U.S. high yield bonds.

The new fund, named the Select U.S. High Yield Bond Fund, is Nomura’s second to target the asset class, according to an article in Citywire. In contrast to its first fund, launched in 2009, the new vehicle is more conservative, concentrating on securities with a minimum credit rating of B3/B- in order to concentrate on the lower-risk portion of the high-yield bond universe. Accordingly, it will avoid CCC-rated or distressed debt. 

The new fund will be managed by Nomura’s New York-based Corporate Research and Asset Management unit, and led by veteran manager Amy Yu Chang. “We believe that the U.S. high yield market offers an attractive yield in a low yield world,” Chang said in a statement. “We currently expect a slow growth environment coupled with an accommodative Fed and global central bank stimulus, which are supportive for high yield. 

“We expect defaults, which were mostly concentrated in the Oil & Gas and Metals & Mining sectors, to decline from their recent peak,” added Chang, who is a CFA charter holder and how has been a high yield portfolio manager since 2007. 

The new UCITS fund is domiciled in Ireland and will be passported in a wide range of European locales including Austria, Belgium, Denmark, Finland, France, Germany, Italy, The Netherlands, Norway, Spain, Switzerland, Sweden and the U.K. Nomura’s Dublin-based structure hosts more than 20 funds with more than $5 billion in assets as of March 2016.

One of Japan’s leading money managers, Nomura Asset Management is part of Japanese financial services conglomerate Nomura Group and was founded in 1959. The company managed approximately $409 billion as of September 30, 2017.

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