Nomura Global Dynamic Bond

Nomura Global Dynamic is an unconstrained strategic bond fund, with a focus on total returns. It is managed by the charismatic Richard ‘Dickie’ Hodges, who blends two approaches when building his portfolio. First, he studies the state of the global economy and identifies which sectors and investment themes look most attractive. He then undertakes fundamental analysis, to populate his preferred areas with ideas. Dickie invests in the entire range of bond sectors including government bonds, corporate bonds, emerging market bonds and inflation-linked bonds. He can also use a variety of derivatives for dynamic portfolio construction and risk management.

AlphaQuest data Fund provider factsheet
Print this note / Save to PDF

Quick Access

Our Opinion
Fund Manager
Key Facts
Fund Performance
Risk
Company Description
Investment process
ESG

Our Opinion

A sector as vast as that of strategic bonds needs a manager who has the rare ability to accurately read the economic environment, as well as pick individual investments. Dickie Hodges has repeatedly shown he is capable of doing both. He is incredibly knowledgeable about bond securities and derivatives and uses this skillset and a flexible mandate, to exploit opportunities. Nomura Global Dynamic fund offers an excellent option for all market conditions in terms of both yield and capital return.

Fund Manager

Expand

Fund Manager

Close

Dickie Hodges, Lead Manager Richard 'Dickie' Hodges has 36 years of investment experience and has been with Nomura since 2014.

Dickie Hodges, Lead Manager Richard 'Dickie' Hodges has 36 years of investment experience and has been with Nomura since 2014.

Read More

Key Facts

Asset type Fixed Income

Annual Income (Historic) -

Sector Sterling Strategic Bond

Gearing-

Fund Size-

Fund Manager Start Date 30 January 2015

Ongoing Charges Figure (OCF) -

Payment Date(s) N/A

Annual Management Charge (AMC) -

Fund Performance

Expand

Risk

Risk measures are built into the portfolio management and construction throughout the process, ensuring that the Nomura Global Dynamic fund is not overly exposed to any one factor. There is an independent risk management team that will monitor the portfolio daily and report back any issues or exposure that has been taken, allowing Dickie to have a constant idea of what risk he has taken in the fund already, and where he can mitigate this if necessary. There is a maximum allowance of 20% cash, 30% emerging market debt, 20% convertible bonds and 10% foreign exchange. Dickie cannot hold direct equities in the portfolio but can use put options to take similar exposure if he sees fit.

Read more
Back
Risk: 4

Company Description

Nomura Asset Management (NAM) is the investment management division of the Japanese Nomura Group. NAM has had a presence in Europe for more than 30 years, having launched in 1959, while the wider group has corporate heritage dating back to 1873. Globally, NAM has over $569bn of assets under management, with more than 1,300 staff in 16 offices.

Read more
Back

Fund Performance

Close

Risk

Close

Risk measures are built into the portfolio management and construction throughout the process, ensuring that the Nomura Global Dynamic fund is not overly exposed to any one factor. There is an independent risk management team that will monitor the portfolio daily and report back any issues or exposure that has been taken, allowing Dickie to have a constant idea of what risk he has taken in the fund already, and where he can mitigate this if necessary. There is a maximum allowance of 20% cash, 30% emerging market debt, 20% convertible bonds and 10% foreign exchange. Dickie cannot hold direct equities in the portfolio but can use put options to take similar exposure if he sees fit.

Company Description

Close

Nomura Asset Management (NAM) is the investment management division of the Japanese Nomura Group. NAM has had a presence in Europe for more than 30 years, having launched in 1959, while the wider group has corporate heritage dating back to 1873. Globally, NAM has over $569bn of assets under management, with more than 1,300 staff in 16 offices.

Quote from the Fund Manager

I am paid to take risk and earn attractive returns for my investors. But I absolutely refuse to do so without the flexibility to hedge against the very real dangers that fixed income investors face.

Dickie Hodges

Lead Manager

Investment process

Dickie takes an unconstrained approach. He will utilise the full range of bond and derivative securities available to him to make a portfolio of diverse investment strategies. The goal is to deliver a yield well in excess of cash, but with capital growth too. He aims to do this whilst generating less volatility than bond indices.

Step one of the process is to build a medium-term view of the world. Dickie will want to understand the broad interest rate cycle and what the economic and corporate fundamentals are saying about the state of the world. Step two is to find any short-term opportunities that may exist. This step is designed to highlight idiosyncrasies in markets, including identifying areas of risk. This will throw up speculative positions in valuations, as well as seeing what catalysts could show signs of change. Step three is to identify the best securities to exploit such opportunities, judged on their risk and reward trade off.

Risk

Risk measures are built into the portfolio management and construction throughout the process, ensuring that the Nomura Global Dynamic fund is not overly exposed to any one factor. There is an independent risk management team that will monitor the portfolio daily and report back any issues or exposure that has been taken, allowing Dickie to have a constant idea of what risk he has taken in the fund already, and where he can mitigate this if necessary. There is a maximum allowance of 20% cash, 30% emerging market debt, 20% convertible bonds and 10% foreign exchange. Dickie cannot hold direct equities in the portfolio but can use put options to take similar exposure if he sees fit.

ESG

ESG - Limited
There are no ESG-specific criteria applied to the fund and the portfolio manager has absolute discretion to invest in securities that either have poor ESG ratings or fall outside the analysts’ ESG coverage, which is in keeping with the unconstrained nature of the strategy. The global credit analysts do assign ESG ratings to the companies in their coverage, which have the ability to influence credit selection, but Nomura would not describe ESG inputs as material to the security selection process.

Related Insights

The information, data, analyses, and opinions contained herein (1) include the proprietary information of FundCalibre, (2) may not be copied or redistributed without prior permission, (3) do not constitute investment advice offered by FundCalibre, (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a fund, and (5) are not warranted to be correct, complete, or accurate. FundCalibre shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, this information, data, analyses, or opinions or their use. The Elite Fund rating is subjective in nature and reflects FundCalibre’s current expectations of future events/behaviour as they relate to a particular fund. Because such events/behaviour may turn out to be different than expected, FundCalibre does not guarantee that a fund will perform in line with its FundCalibre benchmark. Likewise, the Elite Fund rating should not be seen as any sort of guarantee or assessment of the creditworthiness of a fund nor of its underlying securities and should not be used as the sole basis for making any investment decision. FundCalibre disclaims any responsibility for trading decisions, damages or other losses resulting from any use of the Elite Fund rating. All performance data, as well as fund size, OCF, AMC, annual income (historic), share price discount or premium, is sourced directly from FE Analytics, and will change periodically.