EUROPE - Nomura has launched a fixed income fund offering institutional investors absolute returns through interest rate markets.
The Nomura Interest Rate Investment Strategy IRISx4 aims to provide investors with four-times leveraged exposure to the performance of the Nomura Interest Rate Investment Strategy (IRIS).
IRIS is an interest rate positioning index which adjusts in changing market and economic conditions using macroeconomic and quantitative indicators. The index implements long or short positions across the interest rate curves of six markets using liquid fixed income instruments - money-markets futures, bond futures and interest rate swaps - through more than 40 trading positions.
Nomura head of fixed income fund solutions Jean-Philippe Royer said: "Despite current market conditions, investors are still looking for absolute excess returns in the range of 7% to 8% over cash, but without the volatility that usually accompanies such high alpha. The IRISx4 fund was developed to respond to that demand."
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