Nomura Launches New UCITS III Fund – Global Emerging Markets III 80% Protected Fund
London, August 12, 2009 – Nomura has launched the Global Emerging Markets III 80% Protected Fund (GEM III Fund), the latest in the series of open-ended protected emerging markets funds on the Enovara plc UCITS III platform.
Given recent emerging market growth which is recovering to pre-2008 levels, there has been renewed appetite among investors to obtain protected emerging market equity exposure. With the average rate of GDP growth in emerging markets outpacing US GDP growth over the past four years, emerging market economies are expected to outperform US GDP growth in both favourable and less favourable market conditions.
"The GEM III Fund has drawn an exceptional number of European and Asian clients, indicating a strong investor interest to enter emerging equity markets," explained Marcel Koebeli, Managing Director, head of Equity Derivatives Structured Sales at Nomura. "Emerging markets have substantial growth potential, but it is not easy to time the entry and exit. The GEM III Fund helps to time the investment through an embedded feature which protects the investment at 80% of the highest NAV ever reached."
The UCITS III format has attracted a lot of investors mainly for reasons of counterparty risk control and regulation. The GEM III Fund combines a globally diversified emerging market equity underlying with 80% capital protection - while investing 100% in emerging markets on day one. The Fund's primary objective is to achieve long-term capital growth by providing diversified access to global emerging market equities while protecting investors against emerging market falls of more than 20%. The Fund provides investors with the growth potential of a globally diversified investment strategy aimed at private and institutional investors. In addition, the Fund protects investors by locking-in 80% of the highest Net Asset Value (NAV) achieved during the Fund's life.
The GEM III Fund offers investors the kind of diversified exposure which direct investment in an emerging market would not be able to provide. As of June 2009 the Nomura Global Emerging Markets Index had exposure to over 23 market economies, 17 sectors and over 300 stocks offering a truly global emerging market investment portfolio. The BRIC market economies feature heavily, but the underlying fund investments also include Mexico, Turkey, Poland and South Africa.
The purpose of this press release is to make a general public announcement concerning the Global Emerging Markets III 80% Protected Fund. It has not been prepared for the purpose of an offer of, or solicitation of an offer to buy or subscribe for, any securities or units of funds.
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For further information please contact:
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Nomura
Nomura is a leading financial services group and the preeminent Asian-based investment bank with worldwide reach. Nomura provides a broad range of innovative solutions tailored to the specific requirements of individual, institutional, corporate and government clients through an international network in over 30 countries. Based in Tokyo and with regional headquarters in Hong Kong, London, and New York, Nomura employs about 26,000 staff worldwide. Nomura's unique understanding of Asia enables the company to make a difference for clients through five business divisions: retail, global markets, investment banking, merchant banking, and asset management. For further information about Nomura, please visit www.nomura.com.
