The Nomura Global Dynamic Bond Fund, managed by Richard “Dickie” Hodges has reached the USD1 billion mark, having delivered 16.8 per cent YTD.
Launched in 2015, the investment objective of the Fund is to provide a combination of income and growth through investing across the fixed income markets.
Hodges, Head of Total Return Fixed Income, says: “This is a very important milestone for our fixed income team and I am appreciative for the huge levels of investor support during these uncertain times. We are proud of how we have managed to navigate market conditions dominated by low interest rates, geopolitical tensions and a slowing global economy.
“The drivers of recent returns are indicative of the sheer flexibility of this Fund’s investment remit: we have derived performance from peripheral European government bonds, Emerging Markets as diverse as India and Egypt, deeply subordinated Financials debt and plain US duration.
“However, the Fund’s performance in 2018 is perhaps even more indicative of our differentiation. We protected investors from both rising rates and falls in risk markets. This is the true measure of the flexibility of the Fund – we will use every tool at our disposal to protect clients from downside risk.”
Peter Ball, Head of EMEA Distribution at Nomura Asset Management UK, says: “These flows are testament to the Global Dynamic Bond Fund’s team ability to outperform despite a volatile macroeconomic and geopolitical environment, the strength of our EMEA distribution team and the robust demand for active fund management.”
Unconstrained by benchmark allocations, the Fund seeks to maximise total return while reducing volatility through allocation to a wide range of bond sectors.
The Fund employs top-down analysis of macroeconomic and market themes to establish a strategic core portfolio of cash bonds, accounting for at least 80 per cent of the assets within the strategy. Allocations seek to benefit from expected changes in markets, with the Fund’s diversification allowing greater flexibility to invest across all fixed income assets, including convertible bonds and local currency instruments.
The management of risk plays a crucial role in this strategy. The team uses derivatives to provide cost effective hedging strategies to mitigate specific shorter-term risks to both credit and interest rates and position the Fund to benefit from short-term market movements and shocks.
