Nomura Global Inflation-Linked Bonds

Inflation-linked bonds (ILBs) insulate the investor from unexpected rises in inflation. At a time of record low inflation expectations but unprecedented Central Bank intervention, that protective quality is attractive to many investors.

Many investors in ILBs are constrained – pension funds and insurance companies forced to invest in specific markets. In contrast, Nomura’s global ILB strategies actively position our clients’ portfolios across the global ILB spectrum, delivering protection against unexpected inflation increases, whilst seeking the most attractive risk / reward dynamics and hedging currency risks where they are unrewarded. With a strong track record since 2004, Nomura is one of the most established managers of global ILBs.

Investors can choose between two maturity profiles: an “all maturity” strategy, and “short/medium maturities” strategy which primarily invests in bonds up to 5-years maturity (and therefore has less interest rate exposure).

Investment approach

We believe in fundamental, research-based and long-term oriented investing. Our investment approach is rooted in thorough analysis and based on views formed by a global team of experienced investment professionals with diverse backgrounds and profound knowledge of financial markets. We believe that markets are not fully efficient and active management can provide an improved risk/return outcome.

Investment style

• Strategies: Top-down macro approach
• Pure play: No credit, no structured products, FX risk largely hedged
• Active positioning: country, curve, interest rate and currency management
• Credit risk: Focus on high quality OECD government bonds. No corporate credit.
• Interest rate risk: Greater risk in the “all maturity” strategy. Primary exposure is to real yields – if rates rise due to increased inflation expectations, ILBs offer protection.
• Active risk: Tracking error typically up to 2% p.a.

Pooled Fund Availability

The Nomura Global Inflation-Linked Bonds strategies are available for investment via our German domiciled UCITS funds.

Nomura ILB All Maturities Strategy
Nomura Real Return Fonds*

Nomura ILB Short/Medium Maturities Strategy
Nomura Real Protect Fonds*

* Retail and Institutional share classes as well as within a EUR or USD hedged share class currently available. Registered for sale in Germany, Austria, Spain, Italy^1), Singapore²⁾ – can also be distributed to qualified investors in Switzerland.

¹⁾ Registered for distribution to professional clients in Italy.
²⁾ Registered for distribution to investors under restricted scheme in Singapore.