Nomura AM registers two inflation-linked bond funds in Italy

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Nomura Asset Management has announced it has extended the availability of its two global inflation linked bond (ILB) Ucits funds to Italy.

The two strategies are managed by Nomura AM’s team in Germany. The Ucits funds Nomura Real Return and Nomura Real Protect are domiciled in Germany and were originally launched in 2004 and 2009 respectively.

The two funds invest primarily in inflation-indexed bonds from issuers of high credit rating from OECD countries. Foreign currencies are predominantly hedged.

Andreas Koerner, head of Marketing and Client Relations EMEA and CEO of Nomura Asset Management Deutschland KAG, said: “Implicit inflation (BEI) rates remain inexpensive compared to historical valuations.”

“At the same time, upside inflation risk continues due to a tightening job market, central banks falling behind the curve and a US president who looks likely to ramp up fiscal spending.

“This combination of low valuations and the increasing risk of inflation offers an investment opportunity for investors seeking sufficient real returns.

Whether looking for a longer or shorter maturity profile, our two proven inflation linked bond funds are able to provide protection against unexpected inflation surprises and also offer diversification effects within their overall portfolio context.”

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