Cayman-domiciled Global Funds Trust has entered the Japanese retail structured product market with the issuance of a call-overwriting fund, with target sales of US$10bn.
The Nomura Bank (Luxembourg) subsidiary and subsequently Nomura Europe Holdings had previously dealt in vanilla offerings and investments into Chinese securities under the group's qualified foreign institutional investors quota using Industrial and Commercial Bank of China as its local custodian.
Repeated enquiries to Nomura seeking an explanation as to why the firm has decided to enter the structured product market were not returned.
The 4.3-year growth and income fund, 高配当株プレミアム / World Stock Premium is linked to the performance of Nomura Multi Managers Fund V - Global High Dividend Equity Premium, which is invested in a basket of high dividend-yielding stocks issued globally. The investment ratio will be 25% to 50% of net assets in the stocks offered in the US, 25% to 50% in Europe and 25% to 50% in the Asia-Pacific Economic Cooperation (APEC) countries.
A built-in covered call strategy will enable the product to provide an annual coupon based on the premiums of call options generated on the underlying stocks, while the net asset value of the fund is linked to the performance of the underlying.
The fund is denominated in Australian and US dollars.
This product is available in the Japan database.