The Nomura Global Dynamic Bond Fund managed by Dickie Hodges has now reached the milestone of USD3bn assets under management, having delivered a 12.2 per cent return in USD terms (net of fees) in 2020. The fund’s AUM has increased threefold since the end of 2019.Launched in 2015, the investment objective of the Fund is to provide a combination of income and growth through investing in debt and debt-related securities with fixed or variable rates of income. Unconstrained by benchmark allocations, the fund seeks to maximise total return while reducing volatility through allocation to a wide range of bond sectors.
Dickie Hodges, Head of Unconstrained Fixed Income, says: “This is a major milestone for the Fund, which underlines our team’s commitment to deliver strong returns for our clients in times of deep uncertainty.
“In light of the pandemic’s impact on global markets, the management of risk played a crucial role in delivering returns last year. It will continue to do so. We use cost-effective hedging strategies to mitigate specific risks to both credit and interest rate markets. Our proven ability to hedge effectively allows us to invest with confidence in assets that can drive attractive returns over the medium to long term.
“As we enter 2021 after such a strong run in risk assets, a more cautious portfolio stance is warranted, and for this reason we have taken risk “off the table” across the portfolio. We have increased hedging and exposures to liquid, safe-haven assets. However, we retain many positions that can provide the Fund with substantial levels of income and capital return. We are optimistic for risk asset prices, but we also expect volatility.
“We believe 2021 will offer fixed income investors both challenge and opportunity – and we are ready for both.”
Peter Ball, Head of EMEA Distribution at Nomura Asset Management UK, says: “During these extraordinary times, our EMEA Distribution team has been working continuously to support our clients. The growth of the Global Dynamic Bond fund reflects both growing interest in fixed income assets and the investment team’s capability to deliver strong performance. It is clear that the flexibility to invest across all fixed income assets has been an important driver of the returns generated for our clients over the past year.”