Nomura Launches High Yield ETF Built Around NCRAM Credit Research

Nomura Asset Management has launched the Nomura High Yield Total Return ETF (HFIX), an actively managed fund sub-advised by Nomura Corporate Research and Asset Management (NCRAM). HFIX will invest at least 80% of assets in below-investment-grade bonds, including fixed and floating-rate debt, bank loans, payment-in-kind securities, convertibles, zero-coupon bonds and distressed securities. NCRAM will use a bottom-up credit research process centered on its “Strong Horse” philosophy, seeking companies with sustainable cash flows and the ability to reduce leverage and improve credit quality over time. Up to 20% of assets may be allocated to investment-grade bonds, bank loans, preferred securities and money market instruments, while up to 20% may be invested in non-U.S.-dollar securities. The fund may also hold distressed debt, convertible bonds and common stock acquired through restructurings.