US High Yield Bond Strategy

We launched our Ireland domiciled Nomura Funds Ireland – US High Yield Bond Fund in March 2009 in response to demand from our institutional investors and on the back of our stellar long-term performance results that we had delivered for over 20 years.

NCRAM: Our Specialist Credit Research Investment Boutique

The Nomura US High Yield Bond strategy is managed by Nomura Corporate Research and Asset Management Inc. (“NCRAM”), a Nomura Asset Management affiliate. NCRAM was established in 1991 and is an analyst-driven investment boutique that specialises in below investment-grade credit.  

The “Strong Horse” Philosophy

We believe a total return approach driven by credit research is the best way to generate alpha in high yield. We describe our investment philosophy as the “Strong Horse” philosophy. Strong Horse companies can carry their debt load through good times and bad. These companies generally have a positive ability to de-lever their balance sheet by generating strong, positive cash flows that are sustainable. The creditworthiness of these companies tends to increase over time, as will their credit ratings.

Our Investment Approach

Our process differentiates us through the following points:

• Creative idea generation in an open environment
• Thorough research conducted by experienced credit analysts
• Disciplined portfolio construction based on the best risk and reward opportunities

Our approach is primarily bottom-up, though top-down perspectives are incorporated. We also characterise our process as a fundamental, as opposed to quantitative, approach.

Awards and Ratings

Morningstar Overall Ratings as at 30-06-2025. Copyright © Morningstar 2025. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied, adapted or distributed; (3) is not warranted to be accurate, complete or timely; and (4) do not constitute advice of any kind, whether investment, tax, legal or otherwise. User is solely responsible for ensuring that it complies with all laws, regulations and restrictions applicable to it. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information, except where such damages or losses cannot be limited or excluded by law in your jurisdiction. Past performance is no guarantee of future results. Morningstar rating based on Nomura Funds Ireland – US High Yield BondFund I USD.

Potential Significant Risks

Bonds that produce a higher level of income usually also carry greater risk as such bond issuers may have difficulty in paying their debts.