Nomura chooses Threadneedle for segregated European High Yield mandate

Nomura Asset Management Japan has chosen Threadneedle to run a segregated European High Yield Bond mandate on its domestic multimanager platform, which is available to Japanese investors.

The mandate will be managed by Roman Gaiser, who manages the Threadneedle European High Yield bond fund. The fund invests in riskier bonds below investment grade. This brings the potential for increase risk of default and could affect the income and the capital value of your investment.

The €308.7 million fund, which is rated AA by Standard & Poor’s, has returned 44.1% in euro terms in the five years since 31 December 2001. However it should be remembered that past performance is not a guide to future returns.

Roman Gaiser, manager of the Threadneedle European High Yield Bond fund, commented: “This mandate win is a clear recognition of the achievements of our Team. For investors like Nomura, high yield offers very positive diversification qualities and we are pleased that the fund has been able to make a good start since being accepted onto the platform.”

Masanori Obata, Senior Fund Manager at Nomura Asset Management, added: “We ran a thorough and rigorous selection process for this mandate, focusing on track record and investment process. We are confident that Threadneedle is the right manager to complement our platform. We look forward to a mutually beneficial relationship over the coming years.”

Madeline Forrester, Head of UK Distribution at Threadneedle Investments, commented: “We have built a strong record in high yield and we are seeing continued growth of demand from both retail and institutional investors for income products. While we already enjoy a significant retail presence, we have been looking to establish ourselves more fully in the institutional arena. Nomura’s decision to support the European High Yield Bond Fund encourages us greatly that we are moving in the right direction.”