Nomura Asset Management has launched the Nomura High Yield Fund, which will be sub-advised by the credit research investment boutique Nomura Corporate Research and Asset Management Inc (NCRAM).
NCRAM is based in New York and has specialised in the management of high yield bonds for more than 20 years. Managed on a team basis, NCRAM's approach is opportunistic – seeking to capture credit market returns while minimising losses. NCRAM's assets under management are USD14.7 billion as of 31 October, 2014.
The investment objective of the Nomura High Yield Fund is to achieve current yield and capital growth. Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in a portfolio of high yield bonds generally rated below investment grade by Moody's Investors Services Inc., Standard & Poor's Rating Services or Fitch, Inc.
David Crall, Chief Investment Officer for NCRAM, says: "Our investment philosophy for the Nomura High Yield Fund is based upon our belief that a total return investment approach driven by credit research is the best way to generate excess return in a high yield market. The Fund will operate a long-only strategy using our 'Strong Horse' investment philosophy. NCRAM believes that 'Strong Horse' companies can carry their debt loads through different economic cycles and can demonstrate the ability to generate strong, sustainable cash flow which enables them to de-lever their balance sheets and improve their ratings."
Prior to existing as the Nomura High Yield Fund, the Fund previously operated as the High Yield Fund, a series of Nomura Partners Funds, Inc. which was reorganised into the Fund. The result of the reorganisation meant that all of the assets of the previous fund were transferred into the Fund, launched today. Additionally, all Class A, Class C and Class I shareholders of the previous fund were issued Class I shares of the Fund. Finally, following the reorganisation, the previous High Yield Fund operated by Nomura Partners Funds, Inc. was completely liquidated, dissolved and terminated.
The Investment Adviser for the Fund is Nomura Asset Management USA Inc, the Sub-Adviser is NCRAM, and the distributor is SEI Investments Distribution Co. To purchase shares of the Fund for the first time, investors must invest at least USD250,000.