For 1Q, Nomura Diversified Income Fund Institutional Class shares outperformed the Fund's benchmark, the Bloomberg US Aggregate Index.
Key contributors to performance included security selection within investment grade corporates, high yield corporates, and residential mortgage-backed securities.
Global energy shortages and higher energy prices have the potential to depress demand and therefore cause an economic slowdown even as inflationary pressures are heightened.
The Fed is also likely to keep rates steady for longer and may even have to contemplate hiking rates if inflation rises sharply.
Nomura Diversified Income Fund is managing duration shorter than benchmarks to reflect the correlation breakdowns and added a long dollar position.
Donny DBM/iStock via Getty Images
Market review
Economic indicators in the first quarter of 2026 were mixed. The 4Q25 growth rate was revised downward to 0.7% from its initial estimate of 1.4%. In addition, the unemployment rate edged up marginally to 4.4% in February. However, other
