Overview
Nomura Global Convertible Fund is an active, fundamental, bottom-up oriented strategy that seeks to follow a consistent and well-proven investment process by investing in convertible bonds exhibiting balanced characteristics.
Nomura Global Convertible Fund is an active, fundamental, bottom-up oriented strategy that seeks to follow a consistent and well-proven investment process by investing in convertible bonds exhibiting balanced characteristics.
Convertible bonds
Value-oriented, globally diversified approach in managing convertible bonds
Robust investment process
Repeatable process underpinned by established proprietary systems and research
Time-tested approach
Deep experience (more than two decades) investing in convertibles across markets
Aims to generate long-term absolute capital appreciation by investing with a fundamental bias in convertible bonds, underpinned by the management team's strong credit focus.
Seeks to invest in convertibles exhibiting balanced characteristics, utilising bottom-up, fundamental analysis to identify undervalued convertibles with positive asymmetry.
Looks to identify bonds with attractive risk-reward profiles, close to their implicit bond floor (investment value), in many cases providing investors with equity optionality with low downside risk.
Employs core credit analysis experience to identify undervalued, higher yielding convertibles that are likely perform well as the market recognises improving company fundamentals.
The opportunity set is distilled based on a robust and repeatable process refined over 20 years of convertible investing.
Analysing the credit quality of individual issuers and specifically ascertaining an appropriate credit spread to input into our convertible model is a key focus of the investment process. This helps determine the potential downside risk.
Technical and valuation analysis is applied in addition to the credit spreads derived from our fundamental research in order to understand the characteristics of each individual convertible bond.
Risk Disclosure
Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt.
This includes prepayment risk, the risk that the principal of a bond that is held by a portfolio will be prepaid prior to maturity, at the time when interest rates are lower than what the bond was paying. A portfolio may then have to reinvest that money at a lower interest rate.
International investments entail risks including fluctuation in currency values, differences in accounting principles, or economic or political instability. Investing in emerging markets can be riskier than investing in established foreign markets due to increased volatility, lower trading volume, and higher risk of market closures. In many emerging markets, there is substantially less publicly available information and the available information may be incomplete or misleading. Legal claims are generally more difficult to pursue.
Fluctuations in exchange rates between various foreign currencies may cause the value of the investment to decline. The market for some (or all) currencies may from time to time have low trading volume and become illiquid, which may prevent the Strategy from effecting positions or from promptly liquidating unfavorable positions in such markets, thus subjecting the investment to substantial losses.