Investing involves risk, including the possible loss of principal.
International investing (particularly in emerging markets) may be adversely affected by political instability; changes in currency exchange rates; inefficient markets and higher transaction costs; foreign economic conditions; the imposition of economic or trade sanctions; or inadequate or different regulatory and accounting standards. Investing in emerging markets involves greater risk than investing in more developed foreign markets because, among other things, emerging markets may have less stable political and economic environments, information about issuers may be less available or of a lesser quality, and securities markets may be smaller, less liquid, and subject to greater price volatility.
Investments in derivatives may involve additional expenses and are subject to significant loss if they perform differently than anticipated. Derivatives are also subject to the risk that the counterparty may fail to perform its obligations.
Fixed income securities can lose value, including the possible loss of principal. Fixed income securities are subject to credit risk and interest rate risk. Credit risk is the risk that an issuer of a fixed income security may be unable to make interest payments and/or repay principal in a timely manner. Interest rate risk is the risk that prices of bonds and other fixed income securities will increase as interest rates fall and decrease as interest rates rise. Fixed income securities with longer maturities or duration generally are more sensitive to interest rate changes.
Mortgage-backed securities (MBS) and asset-backed securities (ABS) are subject to credit risk and interest rate risk and may also be subject to prepayment risk and extension risk. In addition, MBS and ABS may decline in value, become more volatile, face difficulties in valuation, or experience reduced liquidity due to changes in interest rates or general economic conditions. Certain MBS, such as collateralized mortgage obligations, real estate mortgage investment conduits, and stripped MBS may be more susceptible to these risks than other MBS.
Forward foreign currency contracts may substantially change a fund’s exposure to currency exchange rates and could result in losses to a fund if currencies do not perform as expected.
The principal on a fixed income security may be prepaid prior to maturity, which may require reinvestment at a lower interest rate.
Longer-duration debt securities are more likely to decline in price than shorter duration debt securities in a rising interest rate environment.
The fund or strategy is subject to liquidity risk, which is the risk that the fund or strategy’s investments cannot be readily sold within seven calendar days at approximately the price at which the fund or strategy has valued them.
The value of an investment will decline if there is a default by or a deterioration in the credit quality of the issuer or a provider of a credit enhancement or demand feature.
A foreign government or government-related issuer may be unable to make timely payments on its external debt obligations.
Fluctuations in exchange rates between currencies may cause the value of an investment to decline. Some currencies may have low liquidity which may prevent the Strategy from effecting positions at favorable rates, thus subjecting the Strategy to substantial losses.
Securities in the lowest of the rating categories considered to be investment grade (that is, Baa or BBB) have some speculative characteristics
In times of stress, a number of our investments may be difficult or impossible to sell and/or experience a haircut.
Investments in collateralized loan obligations (CLOs) are subject to liquidity risk, interest rate risk, credit risk, prepayment risk, valuation risk, and the risk of default of the underlying asset, among others. The degree of such risk will generally correspond to the specific tranche in which an investment is made, with lower-rated CLO tranches often subordinate to higher-rated tranches in terms of payment priority and therefore subject to relatively greater risk.
The supra strategy has a sizable allocation to frontier currencies characterised by reduced liquidity. A frontier market is a country that is more established than the least developed countries (LDCs) but still less established than the emerging markets because it is too small, carries too much inherent risk or is too illiquid to be considered an emerging market. The ability to access any or all of these frontier currencies, in their current proportion, may be limited in the future as the strategy grows in size. In the eventual case that we must liquidate the portfolio, the allocation to frontier markets may prevent us from doing so in a timely and orderly manner. Exposures to frontier markets may be difficult or impossible to sell at a point in time.
Some additional EMD currency risks include higher volatility due to EM currency exposure and behaviour in risk-off markets (typically EM underperforms); many (and ongoing) idiosyncratic risks such as political risks (e.g. Brazil, Mexico), external and internal imbalances (e.g. Turkey) and poor governance frameworks (e.g. South Africa); and US Federal Reserve monetary policy could directly influence US yields and the evolution of the USD, which in turn could have direct impact on EM local currency bond markets.
© 2026 Nomura Asset Management International Inc.
Nomura Asset Management is part of the Investment Management Division of the Nomura Group, providing integrated public and private market asset management services across equities, fixed income, private credit and multi-asset solutions to intermediary and institutional clients. Nomura Asset Management primarily operates through several distinct investment managers, which include Nomura Capital Management LLC, Nomura Corporate Research and Asset Management Inc., Nomura Investment Management Business Trust (consisting of the Nomura Alternative Strategies, Nomura Investment Management Advisers, Nomura Investments Fund Advisers, Delaware Capital Management, and Delaware Management Company series), Nomura Investment Management Europe S.A., and Nomura Investment Management Austria Kapitalanlage AG. Under certain circumstances, investment advisory services are also provided by Nomura Asset Management U.K. Limited and Nomura Asset Management Australia Pty Limited, which are Nomura Group companies.
Nomura Asset Management U.K. Limited (“NAM UK”) is authorised and regulated by the Financial Conduct Authority. This information is intended for Professional Clients and Eligible Counterparties only and is not for retail investors. The content is a marketing communication and does not constitute investment advice.
Investment involves risk. The value of investments and the income from them can fall as well as rise, and investors may not get back the amount originally invested. Past performance is not a reliable indicator of future returns.
The fund referenced on this page forms part of a Luxembourg-domiciled SICAV authorised by the Commission de Surveillance du Secteur Financier (CSSF) as a UCITS. Full information, including the latest prospectus, KIID/KID, is available in English. UK users will be directed to the UK-approved versions of these documents.
This is a marketing communication. Please refer to the Prospectus and the KIIDs when making any final investment decision.
A summary of investor rights in English and information on collective redress mechanisms are available here.
This information is intended for investors in the United Kingdom only and may not be appropriate in other jurisdictions. Nomura Asset Management U.K. Limited may at any time decide to terminate arrangements it may have made for the marketing of units of a fund in a member state other than its home member state.