Nomura launches ‘more conservative’ high yield bond fund

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Nomura Asset Management has launched a ‘lower-risk’ alternative to its existing US High Yield Bond fund.

The Select US High Yield Bond fund will focus on bonds with a minimum credit rating of B3/B-, avoiding CCC and distressed debt names unlike its existing sister fund.

It will target overall performance of +1 per cent of the benchmark per year.

Andreas Körner, head of marketing and client relations, EMEA, says the new fund complements the existing high yield range by “demonstrating a more conservative approach to investing in this asset class.”

The Ucits fund, domiciled in Ireland, will be led by Amy Yu Chang, supported by 12 credit analysts.

Chang says: “It is a particularly appropriate time to launch this fund as we believe that the US High Yield market offers an attractive yield in a low yield world. 

We currently expect a slow growth environment coupled with an accommodative fed and global central bank stimulus, which are supportive for high yield. 

“Additionally, we expect defaults, which were mostly concentrated in the oil and gas and metals and mining sectors, to decline from their recent peak.”