Investments  

Nomura global fund in active role

Nomura Asset Management has launched an actively managed fund with the aim of generating a higher excess return while preserving the benefits of diversification.

The Global High Conviction fund aims to deliver high returns through actively managing a highly concentrated, unconstrained global equity portfolio.

The Ireland domiciled Ucits fund will add to Nomura Ireland’s range of funds, which currently has $6bn (£4.08bn) of assets under management.

The fund will be managed by NAM UK’s head of equity investment, Tom Wildgoose and co-managed by Ilan Chaitowitz.

Key Features

• The fund will focus on individual stock selection, with an emphasis on the timely purchase of a select number of high-quality businesses trading below intrinsic value.

• The management team actively manage the risk of unintended exposures and stock correlations of the concentrated portfolio comprising 17 to 25 stocks.

• The fund managers have access to top-down risk analytics and bottom-up asset selection ideas through Nomura’s global network of analysts.

Adviser View

Matthew Bird, investment adviser at Gwent-based Seer Green Investment Planning, said: “It is difficult to see the potential without seeing the holdings, but in theory a global unconstrained fund is something potentially excitin,g so if good at stock selection it is potentially an attractive fund.

“It is quite difficult, however, to be a global expert, to be able to uncover the hidden gems in markets around the world. Few managers have proven to be good at that, especially if dealing with small caps.”