Nomura Asset Management Enters Hong Kong Retail Market with Launch of Five SFC-Authorized Funds
RISK DISCLOSURE
- Funds may employ financial derivative instruments and techniques for efficient portfolio management and/or hedging purposes. The use of financial derivative instruments may create leverage. ESG-related risk events or conditions could cause a material impact on the value of the investment if they were to occur.
- Nomura India Equity Fund which invests in an emerging market is exposed to higher risks relating to equity market, geographical concentration, political and regulatory, emerging markets, macroeconomic, stock market control, currency, small cap, liquidity and volatility risks. Emerging markets tend to be more volatile than more established stock markets and therefore any investment is at greater risk.
- Nomura Asia Ex Japan High Conviction Fund may invest in the China A-Shares market directly via the Stock Connect and thus is subject to the associated risks (including quota limitation, change in rule and regulations, repatriation of the Fund's monies, trade restrictions, China market volatility and uncertainty, potential clearing and/or settlement difficulties, change in economic, social and political policy in PRC and Mainland China tax risks (where appropriate).
- Nomura US High Yield Bond Fund which invests in high yield securities generally entails increased interest rate, credit, liquidity and market risk. Investment in non-investment grade securities may subject the fund to heightened litigation risks and / or prevent their disposal. Investment in securities of distressed entities may involve sudden and erratic price movements and volatility.
- Nomura Asia Investment Grade Bond Fund invests in fixed income securities and thus is subject to interest rate risk, sector risk, credit risks (including default risk and downgrading risk), sovereign debt risk, emerging markets risk, liquidity risk, concentration risk of investing in Asian debt securities, volatility risk, currency exchange risk, credit rating risk.
- Investors should not make investment decisions based on this document alone. Investors should refer to the Prospectus and Key Facts Statement of the relevant funds and Hong Kong Covering Document for details including risk factors.
Nomura Asset Management Co., Ltd, the core company within the Investment Management Division of Nomura Holdings, Inc., today announced that five UCITS funds have obtained the Securities and Futures Commission (SFC) of Hong Kong authorization*1 to be marketed to retail investors.
"Hong Kong has always been one of Nomura Asset Management's core markets outside Japan. We established our office here in the 1980s and have been servicing institutional investors and high-net-worth clients for decades," said John Liu, President and Managing Director of Nomura Asset Management Hong Kong Limited.
"Recently, we have seen an increase in demand from retail investors for best-in-class products across different asset classes. The authorization for our funds marks an important milestone in our retail journey, which will be a key strategic focus area for us in the medium to long term."
The five authorized funds are existing UCITS funds that have been offered to investors in Europe and other regions for years with great success.
Davy Yuen, Head of Wholesale Business at Nomura Asset Management Hong Kong Limited, said: "We are committed to providing products with well-established investment strategies and new product features that suit the needs of retail investors in Hong Kong."
The authorized funds include three equity and two fixed income funds:
·Nomura Japan Strategic Value Fund
·Nomura India Equity Fund
·Nomura Asia Ex Japan High Conviction Fund
·Nomura US High Yield Bond Fund
·Nomura Asia Investment Grade Bond Fund
Kenichi Suzuki, Nomura Asset Management's Senior Managing Director, Head of Global Business Unit, said: "This is the first step to expand our fund offerings in Hong Kong which is a key retail market in Asia and we are delighted to continue growing the product suite going forward."
*1 SFC authorization is not a recommendation or endorsement of a scheme nor does it guarantee the commercial merits of a scheme or its performance. It does not mean the scheme is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors.
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