Nomura Launches Innovative New Absolute Return UCITS III Fund
London, June 7, 2010 – Nomura, the global investment bank, has today announced the launch of the Nomura Interest Rate Investment Strategy IRISx4 Fund. The fund, developed by Nomura Investment Solutions plc, aims to provide institutional investors with absolute returns by investing in interest rate markets.
The IRISx4 fund is the latest development in Nomura's UCITS III compliant product suite. Its investment objective is to provide investors with four times leveraged exposure to the performance of the Nomura Interest Rate Investment Strategy (IRIS).
IRIS is an interest-rate positioning index which dynamically adjusts in changing market and economic conditions using macro-economic and quantitative indicators. Developed by Nomura's fixed income macro-quantitative research team, the index is highly diversified and consists of four trading strategies. It implements long or short positions across the interest rate curves of six markets1 using liquid fixed income instruments - money-markets futures, bond futures and interest rate swaps - through more than 40 trading positions.
Jean-Philippe Royer, head of the Fixed Income Fund Solutions Group at Nomura said: "Despite current market conditions, investors are still looking for absolute excess returns in the range of 7 to 8 per cent over cash, but without the volatility that usually accompanies such high alpha. The IRISx4 fund was developed to respond to that demand. With the robust macroeconomic rationale and framework of IRIS, the fund offers an excellent diversification opportunity for an investment portfolio."
The IRISx4 fund offers daily liquidity and implements a strict risk-management process2. It follows the success of IRISx2, another UCITS-compliant fund launched in September 2009 which has since displayed steady excess returns with low volatility, reaching €110m of assets under management3.
The fund is available in EUR and GBP-hedged share classes for institutional investors, with advisor share classes launching across major European countries in the coming months.
Ends
For further information please contact:
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| Name | Company | Telephone |
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| Redzi Mangwana | Nomura International plc | +44 (0) 207 102 1524 |
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Notes to editors:
1 UK, Eurozone, USA, Canada, Japan and Australia
2 including a Value-at-Risk (VaR) control mechanism
3 as of May 21st 2010
Nomura Investment Solutions plc
Nomura Investment Solutions plc ("NIS") is an Irish investment company specifically designed by the Nomura Fixed Income Fund Solutions Group to deliver innovative investment strategies in a simple, transparent, and accessible UCITS format with strict risk controls.
The IRISx4 Fund is the 7th fund launched within Nomura Investment Solutions, with other absolute return or directional funds spanning assets classes such as interest rates, FX, commodities, credit, bonds and equities. The company has funds already registered for public distribution in Ireland, the UK, the Netherlands, Luxembourg, Germany, Austria, France, Italy and Switzerland.
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 over 26,000 staff worldwide. Nomura's unique understanding of Asia enables the company to make a difference for clients through three business divisions: retail, wholesale (global markets, investment banking and other wholesale), and asset management. For further information about Nomura, please visit www.nomura.com.
