Nomura Asset Management has rolled out a new European high yield bond fund that aims to offer attractive returns and reduce losses by identifying companies that can carry their debt load through the economic cycle.
The new vehicle, named Nomura Funds Ireland European High Yield Bond fund, will be managed by Nomura Corporate Research and Asset Management (NCRAM). The fund will be headed by NCRAM executive director and portfolio manager Steven Rosenthal, who will be assisted by 12 credit analysts.
The Ireland-domiciled fund’s performance target is benchmark +2% annually.
“We believe that European high yield bonds have earned a place in an investor’s tactical allocation, offering an attractive portfolio diversification opportunity marked by high risk-adjusted yields, and low default rates. Geopolitical risk, generally full valuations, and the expectation for a large new issue calendar in the autumn have the potential to create volatility which we can use to our advantage,” Rosenthal noted.