Nomura Asset Management (NAM) has launched a new emerging market corporate bond fund.
The Nomura Funds Ireland – Emerging Market Corporate Bond strategy will offer a portfolio of ‘strong horse’ credits which can service their debt burden over an economic cycle.
The fund will be managed by Nomura Corporate Research and Asset Management (NCRAM), Nomura’s investment boutique, which specialises in high yield and emerging market bonds.
NCRAM’s emerging markets fixed income team will oversee the strategy. The team is led by Meno Stroemer, who joined the firm in January 2023.
Stroemer has more than 30 years of experience working in emerging markets and credit on both the buy and sell side in Europe and the US.
The launch comes shortly after the firm made its first corporate hybrid bond fund available to European investors, managed by former Neuberger Berman bond veteran Julian Marks.
The actively managed, hard currency fund combines a top-down and bottom-up approach, according to a NAM spokesperson, and will be benchmarked against the JP Morgan CEMBI Broad Diversified index.
Stroemer 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.’
Read More: Citywire Selector | Nomura AM launches emerging market corporate bond fund