The Nikko AM Global Credit strategy is actively managed using fundamental top-down and bottom-up credit research to create diversified portfolios. The strategy draws on fundamental credit analysis as the primary contributor of returns and complements pure credit selection and credit allocations with other drivers, including currency and interest rates.
The investment team believes Credit is most effectively managed within a global context, allowing fundamental research to determine asset allocation and security selection, tempered by awareness of the asymmetric risks of credit exposures.
We do not have a home bias; nothing pre-occupies portfolio construction - our well-established fixed income teams in US, Europe, Singapore and Japan allows the Global Credit team to develop a holistic and balanced view by drawing on local expertise and on-the-ground research of these teams.
We employ a pragmatic approach and deploy our resources to areas where we see value.
We are innovative. Credit research and Risk Management are supported by proprietary quantitative models which allow us to focus on alpha generating ideas.
We are communicative. Regional teams communicate both formally and informally to share information and research. This additional insight allows the team to execute quickly once they have made a decision.
Quality Research
Issue Selection
Interest Rate Forecasting
Currency Management
The Global Credit team is comprised of five investment professionals and is headed by Holger Mertens. The team sits within the wider Global Fixed Income team based in London, led by Steve Wiliiams.
Global Credit draws upon regional insights from Nikko AM’s credit specialists located in the US, Europe, Singapore, and Japan.
Ongoing risk management is integral to the entire investment process with constant dialogue between our investment and independent risk management teams in ensuring that risks are identified, evaluated, monitored and mitigated. The Global Credit investment management team divides risk into systematic and unsystematic components and both the former and latter are constantly monitored and controlled to keep risk within the strategy at an appropriate level.
Independent to the investment team, Nikko AM Europe’s risk management department oversee the strategy and closely monitors market, credit, operational and portfolio management risk and takes appropriate measures to minimise the impact of potential risk. The risk management process starts with Risk Budgeting and the Risk Management Department which conducts independent, detailed analysis of portfolio risk and characteristics, as well as performance attribution and peer group analysis. The risk process consists of risk budgeting and monitoring with clearly detailed escalation procedures at every step.
The Risk Management Department truly understands the investment management process and therefore feedback and a meaningful dialogue between the investment team and risk managers takes place as part of the firm’s continuous communication flows.
The Nikko AM Global Credit Strategy was launched in August 2016 and is the flagship Global Credit strategy with wide investment powers permitting the Head Portfolio Manager to use discretion, showcasing Nikko AM’s broad credit capabilities. The portfolio is actively managed by Holger Mertens and his team using fundamental top-down and bottom-up credit research to create a diversified portfolio. The strategy aims to achieve a competitive absolute and relative return while managing risk. Key features of the strategy are detailed below:
Draws on fundamental credit analysis as the primary contributor of returns
Approach complements pure credit selection with other drivers, including currency and interest rates
Over a full credit cycle aims to achieve average annual return
Average number of issues: 70-120
Target 1.5% outperformance over the Barclays Global Aggregate Corporate Index
Target tracking error of 1-3%
Aims for absolute positive return of 4% over a longer term horizon
Maximum high yield exposure of 30%
Head Portfolio Manager - Global Credit, CFA
Prior to Nikko AM, Holger worked at Lazard Asset Management and held a variety of roles based in both Frankfurt and London and was Lead Portfolio Manager for their European Corporate Bond Portfolio. Before Lazard, he worked for Deka Investment Management where he was a Fund Manager/Analyst in Corporate Bonds.
Holger began his career at DG Bank as a Fixed Income Trade and Sales assistant. He holds a Masters in Business Management and Economics from the Frankfurt School of Finance & Management and is a CFA® Charterholder.
Investing on an opportunistic basis
Portfolio flexibility to weather different market conditions
Exploiting a broad range of market inefficiencies
Global economic, credit and interest rate cycles are becoming desynchronised - in one market we could see spreads widening and leverage edge up, while in another observe the opposite....
The funds mentioned are Singapore registered funds approved for sale or purchase in Singapore. By proceeding, you are representing and warranting that you are either resident in Singapore or the applicable laws and regulations of your jurisdiction allow you to access the information.
The information on this website is not intended to be an offer, or a solicitation of an offer, to buy or sell any product or service to any person in any jurisdiction where such offer, solicitation, purchase or sale would be unlawful under the laws of such jurisdiction.
This website may contain links to the website of certain overseas affiliates of Nikko Asset Management Asia Limited (“Nikko AM Asia”). However, providing such links should not be considered as offering or solicitation by Nikko AM Asia of any product or service of its affiliates to any person.
This website is purely for informational purposes only with no consideration given to the specific investment objective, financial situation and particular needs of any specific person. It should not be relied upon as financial advice. The mention of individual securities, sectors, regions or countries within this website are for illustration purposes only and does not imply a recommendation to buy or sell. You should seek advice from a financial adviser before making any investment. In the event that you choose not to do so, you should consider whether the investment selected is suitable for you. Investments in funds are not deposits in, obligations of, or guaranteed or insured by Nikko AM Asia.
Past performance or any prediction, projection or forecast is not indicative of future performance. The Funds or any underlying funds may use or invest in financial derivative instruments. The value of units and income from them may fall or rise. Investments in the Funds are subject to investment risks, including the possible loss of principal amount invested. You should read the relevant prospectus (including the risk warnings) and product highlights sheet of the Funds, which are available and may be obtained from appointed distributors of Nikko AM Asia or our website (www.nikkoam.com.sg) before deciding whether to invest in the Funds.
The information contained herein may not be copied, reproduced or redistributed without the express consent of Nikko AM Asia. While reasonable care has been taken to ensure the accuracy of the information as at the date of publication, Nikko AM Asia does not give any warranty or representation, either express or implied, and expressly disclaims liability for any errors or omissions. Information may be subject to change without notice. Nikko AM Asia accepts no liability for any loss, indirect or consequential damages, arising from any use of or reliance on this website.
This site is designed to be light in carbon footprint. We strive to deliver a smoother experience, using less energy with a simplified code, light vector graphics and by reducing unnecessary features and plugins. We regularly review and archive content to reduce impact on the environment.
