A London-based asset manager has expanded its range of high yield bonds for European investors.
Nomura Asset Management has launched the Nomura Funds Ireland – US High Yield Bond Continuum fund - which is a variant of the company’s $3bn US High Yield Bond fund.
It has an ESG criteria to meet Article 8 requirements, meaning products promote social and/or environmental characteristics.
The fund is managed by Nomura Corporate Research and Asset Management, the form’s high yield investment boutique.
Steve Kotsen, the lead manager of NCRAM’s US high yield strategy, will manage the fund.
He said: “We try to identify companies that are well positioned to generate free cash flows over the long term through the different phases of the economic cycle.
“For decades, interest rates have only known one general direction: down. With interest rates on the rise, bonds are once again becoming an increasingly attractive asset class to investors.
“High-yield bonds bring diversification to a fixed income portfolio. Their leverage is almost as low as it has been for 10 years.
“With our rigorous investment process, we aim to benefit from the higher yield, while minimising the risks of default.”
tara.o'connor@ft.com
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