The strategy will be managed by Nomura Corporate Research and Asset Management’s emerging markets fixed income team, led by Meno Stroemer, who joined the firm in January.
It has a top-down country allocation, which takes into consideration global macro factors and analysis of emerging markets, alongside a bottom-up credit selection with fundamental analysis of individual companies.
Nomura AM launches Article 8 US high yield fund
The Article 8 fund is benchmarked against the JP Morgan CEMBI Broad Diversified index and seeks to build a diversified portfolio of ‘strong horse’ credits with the “financial wherewithal to service their debt burden over the economic cycle” and reduce indebtedness over time, Nomura AM said.
Meno Stroemer, head of emerging market corporate bond portfolio management, said: “We are looking at one of the fastest growing asset classes in the world. Already, the outstanding volume is similar in scale to the corporate debt market in the euro area.
“At the same time, the risk-return profile makes this asset class an attractive addition to a portfolio – particularly if you are investing with an active manager who can identify those companies with good prospects for spread narrowing.”
Nomura AM launches corporate hybrid bond fund
Peter Ball, global head of distribution at Nomura AM, added: “Our clients are constantly refining their bond portfolios. Especially after a challenging 2022, they are now looking for broader and more effective diversification.
“Emerging market corporate bonds can be an important building block in this regard. NCRAM’s experienced team has proven in the past that it is able to generate added value in complex bond markets like this with active management.”
