Wed, May 23, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Nomura launches innovative new absolute return UCITS III fund

Wednesday, June 09, 2010
Opalesque Industry Update - 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 management.

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. Corporate website: Source
KM

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. News Briefs - Warren Buffett: Target date funds aren't the way to go, Cambridge Analytica could be reborn under a different name[more]

    Warren Buffett: Target date funds aren't the way to go Planning for retirement can be complicated and stressful. This is why target date funds - funds that are managed based on when you expect to retire - are so attractive. Over time, the balance of stocks, bonds and cash evolve automati

  2. Investing - Hedge funds hike Smurfit Kappa positions amid takeover deal hopes, Hedge fund IBV Capital digs deep to unlock long-term value in a competitive market, Eisman of 'The Big Short' fame recommends shorting Deutsche Bank[more]

    Hedge funds hike Smurfit Kappa positions amid takeover deal hopes From Irishtimes.com: Two US hedge funds, Davidson Kempner and York Capital, have accumulated a combined 4.74 per cent interest in cardboard box maker Smurfit Kappa using financial derivatives. It comes as many investors cl

  3. Foundations of hedge fund managers gave big to controversial donor-advised funds[more]

    In the world of philanthropy and tax-deductible charitable giving, the explosion of donor-advised funds has touched off intense debate. Now, there is evidence that the DAF boom is being further fuelled by hedge fund foundation money. Four of the top five foundations that gave the most to large do

  4. Study: For hedge funds, smaller is better[more]

    From Institutionalinvestor.com: The smaller the hedge fund is, the better its performance is likely to be, according to a new study. The study - "Size, Age, and the Performance Life Cycle of Hedge Funds," released April 26 - sought to determine whether a hedge fund's size and age had any effect on i

  5. Hedge fund returns rose in April for first gain since January[more]

    From Bloomberg.com: Bloomberg Hedge Fund Database shows returns flat this year - Currency strategies had the biggest monthly gain at 13% Hedge fund returns increased 0.78 percent in April, reversing two consecutive monthly declines. The swing of 134 basis points was driven by gains in all seven