Nikko Asset Management (Nikko AM) has launched a Corporate Hybrid Bond fund dedicated to investing in hybrid debt of highly rated corporations.
The fund is managed by its London-based Global Fixed Income team and JPY 5.1bn (€42m) was raised from Japanese institutional investors, reflecting growing demand for higher yielding quality investment solutions.
Senior high yield analyst and portfolio manager of the fund Richard Kehoe said, ‘'Corporate hybrids have features of both debt and equity securities that can provide an incremental yield advantage relative to senior unsecured debt, which is attractive to our institutional clients. We believe this is an area of the market where security selection based on rigorous fundamental research best positions you to capture opportunities in the space."
"The Corporate Hybrid Bond fund is another progressive solution we are offering our clients where we believe they are being suitably paid for the risk they are taking. The strategy was developed for institutional investors in Japan looking to generate positive yields in a negative rate environment and we believe this solution will also appeal to institutional investors throughout Asia and EMEA as well,'' said Andre Severino, global head of Fixed Income.
The London-based Global Fixed Income team provides customised and dedicated solutions for clients globally. The team manages capabilities in Developed Markets, Emerging Markets Local Currency Bonds, Global Credit, Green Bonds, Multi-Currency and Money Markets.