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Nomura Launches Alternative Alpha Fund

Nomura Asset Management U.K has announced the launch of its Alternative Alpha Fund. The fund seeks to provide investors access to returns uncorrelated to major asset classes, targeting a return of 10% per annum with an average volatility of below 10%, using a combination of derivative and volatility sub-strategies.

The portfolio will primarily make use of listed options and futures across the major equity and volatility indices, as well as bond futures. The Ireland-domiciled UCITS fund is managed from Tokyo by Senior Portfolio Manager David Latto and his team.

David Latto, Senior Portfolio Manager, commented: “The changing macroeconomic backdrop in the last decade has led to a shift in the global investment industry. The Nomura Funds Ireland - Alternative Alpha Fund aims to achieve stable returns and daily liquidity via its unique approach of combining yield enhancement and derivative strategies with tail-hedge strategies. The fund will actively invest in options and futures to benefit from market inefficiencies and structural imbalances.”

Commenting on the launch, Peter Ball, Managing Director at NAM UK said: “The Nomura Alternative Alpha Fund launch marks a further extension of the Nomura Funds Ireland Plc. range of funds, which currently has $8.3 billion of assets under management. The fund provides investors with an innovative approach to investing to navigate an uncertain geo-political landscape and low interest rate environment.”