Nikko Asset Management has launched a Global Credit fund for Holger Mertens, head portfolio manager in the firm’s global credit division.
The Luxembourg-domiciled Ucits fund targets an excess return of 1.5% against the Barclays Global Aggregate Corporate index, an absolute return target of 4%, and will invest in a portfolio of between 70 – 120 global corporate bonds.
The fund’s global investment outlook will allow the management team to fuse the liquidity of developed market bonds with the higher yields offered by developing markets.
Mertens joined Nikko AM from Lazard Asset Management last year, where he spent 13 years in the firm’s fixed income division. Nikko’s global credit teams in London, Tokyo, Singapore, Sydney, Auckland, and New York will support him on the new fund, offering Nikko AM’s on-the-ground presence in a number of international hubs.
In a statement, Mertens said the fund can allocate a maximum of 30% to high yield bonds and will favour issuances by service companies over manufacturers.
The new fund is the latest offering in Nikko AM’s ongoing plans to expand its Ucits range. It follows the launch of the Japan Focus fund in February this year, and an Asia ex-Japan vehicle in September 2014. It is available to wholesale and institutional investors, with an ongoing management fee of 0.8%, and up to 0.2% in operating costs.
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