nomura funds ireland plc interim report and unaudited ...€¦ · class a us$ hedged usd 30th...

NOMURA FUNDS IRELAND PLC

Interim Report and Unaudited Financial Statementsfor the half year ended 30th June, 2015

Company Registration No. 418598


TABLE OF CONTENTS

Page

MANAGEMENT AND ADMINISTRATION 3

GENERAL INFORMATION 4

INVESTMENT MANAGER’S REPORT 15

NOMURA FUNDS IRELAND - GLOBAL EMERGING MARKET EQUITY FUND 15NOMURA FUNDS IRELAND - INDIA EQUITY FUND 16NOMURA FUNDS IRELAND - FUNDAMENTAL INDEX GLOBAL EQUITY FUND 18NOMURA FUNDS IRELAND - JAPAN STRATEGIC VALUE FUND 19NOMURA FUNDS IRELAND - US HIGH YIELD BOND FUND 21NOMURA FUNDS IRELAND - ASIAN SMALLER COMPANIES FUND 23NOMURA FUNDS IRELAND - JAPAN HIGH CONVICTION FUND 25NOMURA FUNDS IRELAND - ASIA EX JAPAN HIGH CONVICTION FUND 27NOMURA FUNDS IRELAND - GLOBAL HIGH YIELD BOND FUND 29NOMURA FUNDS IRELAND - GLOBAL FRONTIER EMERGING MARKET EQUITY FUND 30NOMURA FUNDS IRELAND - DIVERSIFIED GROWTH FUND 31NOMURA FUNDS IRELAND - GLOBAL DYNAMIC BOND FUND 33NOMURA FUNDS IRELAND - EMERGING MARKET LOCAL CURRENCY DEBT FUND 34NOMURA FUNDS IRELAND - ASIA HIGH YIELD BOND FUND 36NOMURA FUNDS IRELAND - ASIA HIGH DIVIDEND FUND 37NOMURA FUNDS IRELAND - ASIA INVESTMENT GRADE BOND FUND 38NOMURA FUNDS IRELAND - CHINA FUND 40

STATEMENT OF FINANCIAL POSITION 42

STATEMENT OF COMPREHENSIVE INCOME 48

STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE PARTICIPATINGSHARES 54

STATEMENT OF CASH FLOWS 60

NOTES TO THE FINANCIAL STATEMENTS 68

STATEMENT OF INVESTMENTS

NOMURA FUNDS IRELAND - GLOBAL EMERGING MARKET EQUITY FUND 108NOMURA FUNDS IRELAND - INDIA EQUITY FUND 114NOMURA FUNDS IRELAND - FUNDAMENTAL INDEX GLOBAL EQUITY FUND 116NOMURA FUNDS IRELAND - JAPAN STRATEGIC VALUE FUND 165NOMURA FUNDS IRELAND - US HIGH YIELD BOND FUND 170NOMURA FUNDS IRELAND - NEWS EMERGING MARKETS SMALL CAP EQUITY FUND 197NOMURA FUNDS IRELAND - ASIAN SMALLER COMPANIES FUND 198NOMURA FUNDS IRELAND - JAPAN HIGH CONVICTION FUND 200NOMURA FUNDS IRELAND - ASIA EX JAPAN HIGH CONVICTION FUND 202NOMURA FUNDS IRELAND - GLOBAL HIGH YIELD BOND FUND 204NOMURA FUNDS IRELAND - GLOBAL FRONTIER EMERGING MARKET EQUITY FUND 221NOMURA FUNDS IRELAND - DIVERSIFIED GROWTH FUND 227NOMURA FUNDS IRELAND - GLOBAL DYNAMIC BOND FUND 229NOMURA FUNDS IRELAND - EMERGING MARKET LOCAL CURRENCY DEBT FUND 245NOMURA FUNDS IRELAND - ASIA HIGH YIELD BOND FUND 248NOMURA FUNDS IRELAND - ASIA HIGH DIVIDEND FUND 252NOMURA FUNDS IRELAND - ASIA INVESTMENT GRADE BOND FUND 257NOMURA FUNDS IRELAND - CHINA FUND 261

1


TABLE OF CONTENTS (CONTINUED)

Page

STATEMENT OF CHANGES IN THE PORTFOLIO

NOMURA FUNDS IRELAND - GLOBAL EMERGING MARKET EQUITY FUND 264NOMURA FUNDS IRELAND - INDIA EQUITY FUND 266NOMURA FUNDS IRELAND - ASIA EX JAPAN FUND 268NOMURA FUNDS IRELAND - FUNDAMENTAL INDEX GLOBAL EQUITY FUND 270NOMURA FUNDS IRELAND - JAPAN STRATEGIC VALUE FUND 272NOMURA FUNDS IRELAND - US HIGH YIELD BOND FUND 274NOMURA FUNDS IRELAND - ASIAN SMALLER COMPANIES FUND 276NOMURA FUNDS IRELAND - JAPAN HIGH CONVICTION FUND 278NOMURA FUNDS IRELAND - ASIA EX JAPAN HIGH CONVICTION FUND 280NOMURA FUNDS IRELAND - GLOBAL HIGH YIELD BOND FUND 282NOMURA FUNDS IRELAND - GLOBAL FRONTIER EMERGING MARKET EQUITY FUND 284NOMURA FUNDS IRELAND - DIVERSIFIED GROWTH FUND 286NOMURA FUNDS IRELAND - GLOBAL DYNAMIC BOND FUND 288NOMURA FUNDS IRELAND - EMERGING MARKET LOCAL CURRENCY DEBT FUND 290NOMURA FUNDS IRELAND - ASIA HIGH YIELD BOND FUND 292NOMURA FUNDS IRELAND - ASIA HIGH DIVIDEND FUND 294NOMURA FUNDS IRELAND - ASIA INVESTMENT GRADE BOND FUND 296NOMURA FUNDS IRELAND - CHINA FUND 298

2


MANAGEMENT AND ADMINISTRATION

DIRECTORSDavid Dillon - Irish*Mark Roxburgh - British (Chairman)John Walley - Irish**

REGISTERED OFFICE OF THE COMPANY33 Sir John Rogerson’s QuayDublin 2Ireland

* Non-Executive Director** Independent Non-Executive Director

ADMINISTRATORBrown Brothers Harriman Fund AdministrationServices (Ireland) Limited30 Herbert StreetDublin 2Ireland

COMPANY SECRETARYTudor Trust Limited33 Sir John Rogerson’s QuayDublin 2Ireland

CUSTODIANBrown Brothers Harriman Trustee Services (Ireland) Limited30 Herbert StreetDublin 2Ireland

DISTRIBUTORNomura Asset Management U.K. LimitedNomura House1 Angel LaneLondon EC4R 3ABEngland

AUDITORSErnst & YoungBlock 1Harcourt CentreHarcourt StreetDublin 2Ireland

LEGAL ADVISERSDillon Eustace33 Sir John Rogerson’s QuayDublin 2Ireland

INVESTMENT MANAGERNomura Asset Management U.K. LimitedNomura House1 Angel LaneLondon EC4R 3ABEngland

SUB-INVESTMENT MANAGERNomura Asset Management Hong Kong Limited32nd Floor, Two International Finance Centre8 Finance StreetCentral, Hong Kong

SUB-INVESTMENT MANAGERNomura Asset Management Co. Ltd1-12-1, NihonbashiChuo-KuTokyo 103-8260Japan

SUB-INVESTMENT MANAGERNomura Asset Management Singapore Limited10 Marina BoulevardMarina Bay Financial Centre Tower 233-03 Singapore 018983Singapore

SUB-INVESTMENT MANAGERNomura Corporate Research and Asset Management Inc.2 World Financial CentreBuilding BNew York, NY 10281-1198United States of America

3


GENERAL INFORMATION

Nomura Funds Ireland Plc (the “Fund”) is structured as an open-ended umbrella investment company with variable capital,incorporated under the laws of Ireland on 13th April, 2006 as a public limited company pursuant to the Companies Act 2014. TheFund has been authorised by the Central Bank of Ireland as an Undertaking for Collective Investment in Transferable Securitiespursuant to the provisions of the European Communities (Undertakings for Collective Investment in Transferable Securities)Regulations, 2011 (as amended) (the “UCITS Regulations”). The Fund commenced operations on 18th December, 2006.

At the period end, there were redeemable participating shares of seventeen sub-funds in issue, the Nomura Funds Ireland - GlobalEmerging Market Equity Fund, the Nomura Funds Ireland - India Equity Fund, the Nomura Funds Ireland - Fundamental IndexGlobal Equity Fund, the Nomura Funds Ireland - Japan Strategic Value Fund, the Nomura Funds Ireland - US High Yield BondFund, the Nomura Funds Ireland - Asian Smaller Companies Fund, the Nomura Funds Ireland - Japan High Conviction Fund, theNomura Funds Ireland - Asia Ex Japan High Conviction Fund, the Nomura Funds Ireland - Global High Yield Bond Fund, theNomura Funds Ireland - Global Frontier Emerging Market Equity Fund, the Nomura Funds Ireland - Diversified Growth Fund,the Nomura Funds Ireland - Global Dynamic Bond Fund, the Nomura Funds Ireland - Emerging Market Local Currency DebtFund, the Nomura Funds Ireland - Asia High Yield Bond Fund, the Nomura Funds Ireland - Asia High Dividend Fund, theNomura Funds Ireland - Asia Investment Grade Bond Fund and the Nomura Funds Ireland - China Fund (the “Sub-Funds”). TheFund has segregated liability between its Sub-Funds and accordingly any liability incurred on behalf of or attributable to any Sub-Fund shall be discharged solely out of the assets of that Sub-Fund. The Fund had in issue the following share classes in each ofthe Sub-Funds at the period end:

Sub-Fund Share Class Currency Launch Date Launch Price

Nomura Funds Ireland - Global Emerging Market Equity Fund

Class I US$ USD 17th December, 2013 USD 100

Nomura Funds Ireland - India Equity Fund

Class A Euro EUR 16th November, 2011 EUR 100

Class S JPY JPY 12th March, 2010 JPY 10,000

Class Z US$ USD 12th January, 2007 INR 10,000

Nomura Funds Ireland - Fundamental Index Global Equity Fund


Class A US$ USD 30th December, 2010 USD 100

Class I Euro EUR 4th January, 2011 EUR 100


Nomura Funds Ireland - Japan Strategic Value Fund


Class A Euro Hedged EUR 15th May, 2013 EUR 100

Class A JPY JPY 4th January, 2010 JPY 10,000

Class A US$ USD 10th November, 2011 USD 100

Class A US$ Hedged USD 30th December, 2013 USD 100

Class AD Sterling GBP 6th March, 2014 GBP 100

Class AD Sterling Hedged GBP 6th March, 2014 GBP 100

Class I Euro EUR 14th February, 2011 EUR 100

Class I Euro Hedged EUR 13th April, 2012 EUR 100

4


GENERAL INFORMATION (CONTINUED)


Nomura Funds Ireland - Japan Strategic Value Fund (continued)

Class I JPY JPY 26th August, 2009 JPY 10,000

Class I Sterling GBP 25th March, 2010 GBP 100


Class I US$ Hedged USD 10th April, 2013 USD 100

Class ID Euro EUR 19th February, 2015 EUR 100

Class ID Sterling GBP 6th March, 2014 GBP 100

Class ID Sterling Hedged GBP 6th March, 2014 GBP 100

Class ID US$ USD 2nd May, 2014 USD 100

Class ID US$ Hedged USD 2nd May, 2014 USD 100

Nomura Funds Ireland - US High Yield Bond Fund


Class A Euro Hedged EUR 11th April, 2012 EUR 100

Class A US$ USD 14th November, 2011 USD 100

Class D US$ USD 18th April, 2012 USD 100

Class I CHF Hedged CHF 24th April, 2014 CHF 100

Class I Euro Hedged EUR 6th December, 2012 EUR 100

Class I Sterling Hedged GBP 20th June, 2013 GBP 100

Class I US$ USD 31st March, 2009 USD 100

Class ID Sterling Hedged GBP 15th May, 2015 GBP 100

Class TD AUD AUD 2nd October, 2014 AUD 100

Class TD US$ USD 2nd October, 2014 USD 100

Nomura Funds Ireland - Asian Smaller Companies Fund

Class A Euro EUR 22nd August, 2013 EUR 100

Class Z US$ USD 12th March, 2013 USD 100

Nomura Funds Ireland - Japan High Conviction Fund

Class A Euro EUR 12th May, 2015 EUR 100

Class A JPY JPY 8th Ocotber, 2014 JPY 10,000

Class A US$ USD 12th May, 2015 USD 100

Class I JPY JPY 7th August, 2013 JPY 10,000

Class I US$ USD 12th May, 2015 USD 100

Nomura Funds Ireland - Asia Ex Japan High Conviction Fund

Class I US$ USD 4th September, 2013 USD 100

Nomura Funds Ireland - Global High Yield Bond Fund

Class A Euro EUR 14th April, 2014 EUR 100

Class I US$ USD 14th April, 2014 USD 100

Nomura Funds Ireland - Global Frontier Emerging Market Equity Fund

Class A Euro EUR 16th July, 2014 EUR 100

Class I US$ USD 16th July, 2014 USD 100

5




Nomura Funds Ireland - Diversified Growth Fund

Class I Sterling Hedged GBP 28th November, 2014 GBP 100

Class I US$ USD 7th November, 2014 USD 100

Nomura Funds Ireland - Global Dynamic Bond Fund

Class A Euro Hedged EUR 30th January, 2015 EUR 100

Class I Sterling Hedged GBP 30th January, 2015 GBP 100

Class I US$ USD 30th January, 2015 USD 100

Class ID Euro Hedged EUR 12th February, 2015 EUR 100

Class ID Sterling Hedged GBP 30th January, 2015 GBP 100

Class RD Sterling Hedged GBP 26th May, 2015 GBP 100

Nomura Funds Ireland - Emerging Market Local Currency Debt Fund

Class A Euro EUR 27th February, 2015 EUR 100

Class I US$ USD 27th February, 2015 USD 100

Nomura Funds Ireland - Asia High Yield Bond Fund

Class A Euro EUR 6th March, 2015 EUR 100

Class I US$ USD 6th March, 2015 USD 100

Nomura Funds Ireland - Asia High Dividend Fund



Nomura Funds Ireland - Asia Investment Grade Bond Fund



Nomura Funds Ireland - China Fund

Class I US$ USD 27th April, 2015 USD 100

Nomura Funds Ireland - Global Emerging Market Equity Fund

The investment objective of the Nomura Funds Ireland - Global Emerging Market Equity Fund (the “Sub-Fund”) is to achievelong-term capital growth through investment in an actively managed portfolio of global emerging market securities.

The Sub-Fund shall invest, under normal market conditions, primarily in equity and equity-related securities listed or traded on arecognised exchange in the countries covered by the MSCI Emerging Markets (Total Return Net) Index (the “Index Countries”).The Sub-Fund may invest in equity and equity-related securities listed or traded on any recognised exchange in non-IndexCountries provided that the business activities of the issuers of such securities are in the Index Countries or in other emergingcountries. The Sub-Fund may invest up to 20% of its net assets in equity and equity-related securities listed or traded on anyrecognised exchange in non-Index Countries.

The Sub-Fund may also hold exposure to the Index Countries through investment in such instruments as American DepositaryReceipts (“ADRs”), Global Depositary Receipts (“GDRs”) or Non-Voting Depositary Receipts (“NVDRs”) and which may belisted on any recognised exchange in a non-Index Country.

It is anticipated that the Sub-Fund will invest across the entire range of capitalisations (from small cap to large cap).

Investment in equity and equity-related securities in Russia is not expected to exceed twice the percentage weighting of Russiansecurities held by the MSCI Emerging Markets (Total Return Net) Index (the “Index”).

The performance of the Sub-Fund’s portfolio of investments will be measured against the Index which is a free float-adjustedmarket capitalisation index that is designed to measure equity market performance in the global emerging markets.

6



Nomura Funds Ireland - Global Emerging Market Equity Fund (continued)

The Investment Manager is, however, entitled at any time to change the Index where, for reasons outside the InvestmentManager's control, the Index has been replaced by another index or where another index may reasonably be considered by theInvestment Manager to have become the industry standard for the relevant exposure. A change in Index proposed by the Directorswill be subject to shareholder approval and disclosure in a revised supplement for the Sub-Fund.

Nomura Funds Ireland - India Equity Fund

The investment objective of the Nomura Funds Ireland - India Equity Fund (the “Sub-Fund”) is to achieve long-term capitalgrowth through investment in an actively managed portfolio of Indian securities.

The Sub-Fund invests, under normal market conditions, primarily in equity and equity-related securities listed or traded on arecognised exchange in India. The Sub-Fund may invest in equity and equity-related securities listed or traded on any recognisedexchange outside India provided that the business activities of the issuers of such securities are in India. The Sub-Fund may alsohold exposure to India through investment in such instruments as American Depositary Receipts (“ADRs”) and GlobalDepositary Receipts (“GDRs”) and which may be listed on any recognised exchange outside India.


The performance of the Sub-Fund’s portfolio of investments will be measured against the MSCI India Index (the “Index”). TheInvestment Manager is, however, entitled at any time to change the Index where, for reasons outside the Investment Manager'scontrol, the Index has been replaced by another index or where another index may reasonably be considered by the InvestmentManager to have become the industry standard for the relevant exposure. A change in Index proposed by the Directors will besubject to shareholder approval and disclosure in a revised supplement for the Sub-Fund.

Nomura Funds Ireland - Fundamental Index Global Equity Fund

The investment objective of the Nomura Funds Ireland - Fundamental Index Global Equity Fund (the “Sub-Fund”) is to achievelong-term capital growth through investment in a portfolio of global equity securities.

The Sub-Fund invests, under normal market conditions, primarily in equity and equity-related securities listed or traded on arecognised exchange in the countries covered by the MSCI All Countries World Index (the “Index Countries”). The Sub-Fundmay invest up to 20% of its net assets in equity and equity-related securities listed or traded on any recognised exchange in non-Index Countries, provided that the business activities of the issuers of such securities are in the Index Countries. The Sub-Fundmay also hold exposure to the Index Countries through investment in such instruments as American Depositary Receipts(“ADRs”), Global Depositary Receipts (“GDRs”) or Non-Voting Depositary Receipts (“NVDRs”) and which may be listed onany recognised exchange in a non-Index Country. It is anticipated that the Sub-Fund will invest across the entire range ofcapitalisations (from small cap to large cap).

The Sub-Fund seeks to outperform the MSCI All Countries World Index (the “Index”) by 2% (gross of investment managementfees) per annum. In seeking to outperform the Index, the Sub-Fund uses the Research Affiliates Fundamental Index (“RAFI”)methodology. The weights of individual securities in the Index are based on the market capitalisation of the securities. The RAFImethodology believes that such indices are flawed in their construction since they overweight over-valued securities andunderweight under-valued securities.

The Sub-Fund intends to achieve its investment objective by creating a portfolio with individual security weights based on acomposite of four fundamental factors, being book value (current year), cash flow (5-year average), dividends (5-year average),and net sales (5-year average), rather than their market capitalisation weights within the Index.

The RAFI methodology does not explicitly target specific industry, capitalisation or style allocations within the Sub-Fund. Suchallocations are all results of the security selection and weighting methodology.

The Sub-Fund normally invests in approximately 1,500 equity and equity-related securities in developed and emerging countriescurrently classified as the Index Countries, but is not constrained to invest in only constituent securities of the Index.

Under the terms of the prospectus, investment in equity and equity-related securities in emerging markets, including Russia willnot exceed 30% of the net asset value of the Sub-Fund. The Sub-Fund may also invest up to 10% in other collective investmentschemes including equity exchange-traded funds.

7



Nomura Funds Ireland - Japan Strategic Value Fund

The investment objective of the Nomura Funds Ireland - Japan Strategic Value Fund (the “Sub-Fund”) is to achieve long-termcapital growth through investment in a portfolio of Japanese equity securities.

The Sub-Fund invests, under normal market conditions, primarily in equity and equity-related securities listed or traded on arecognised exchange in Japan. The Sub-Fund may invest up to 30% of its net assets in equity and equity-related securities listedor traded on any recognised exchange outside Japan, provided that the business activities of the issuers of such securities are inJapan. It is anticipated that the Sub-Fund will invest across the entire range of capitalisations (from small cap to large cap).

The Sub-Fund seeks to identify equity and equity-related securities, whose valuations are, in the opinion of the Sub-InvestmentManager, low in comparison to assets and profitability, and which may be expected to rise in the future. In addition to thesevaluation opportunities, the Sub-Fund seeks investments based on other strategic features as detailed below:

a) equity and equity-related securities where changes to financial conditions, such as changes in operations, strategy anddividend and share buy-back policies, are expected;b) equity and equity-related securities where potential for growth has been identified, including improved results andincreasing market share, as new business operations are developed and the underlying economy improves; andc) equity and equity-related securities relating to companies that have been identified as candidates for businessrestructuring, corporate governance reform or attractive merger and acquisition opportunities.

While it is intended to monitor the performance of the Sub-Fund as against the Topix Index (the “Index”), the Sub-Fund may, bythe nature of the bottom-up stock picking investment approach adopted by the Sub-Investment Manager, take positions in equityand equity-related securities which differ significantly from the weight of such equity and equity-related securities in the Index.

The Sub-Fund is managed so as to maintain a near fully invested position, other than during periods where the InvestmentManager believes that a larger cash position is warranted.

Nomura Funds Ireland - US High Yield Bond Fund

The investment objective of the Nomura Funds Ireland - US High Yield Bond Fund (the “Sub-Fund”) is to achieve current yieldand capital gains, through investment in a diversified portfolio of primarily high yielding US Dollar denominated debt and debt-related securities issued principally by companies in the United States and Canada.

The Sub-Fund may invest in debt and debt related securities issued by United States or non-United States corporations, limitedliability companies or limited partnerships and other forms of enterprise.

The Sub-Fund may hold equity and equity-related securities that it receives in connection with its ownership of certain debt anddebt-related securities, such as defaulted high yield securities in the course of reorganisation which are subsequently convertedinto equity and equity-related securities.

Under normal circumstances, the Sub-Fund invests at least 80% of its net assets in debt and debt-related securities that are ratedbelow investment grade by at least one rating agency or are unrated.

No more than 30% of the Sub-Fund’s net assets may be invested in debt and debt-related securities with a rating of lower thanB3/B- by both Moody’s and S&P, respectively or which are deemed to be of equivalent quality by the Investment Manager.

The Sub-Fund may invest up to 25% of its net assets in debt and debt-related securities issued by companies, governments orgovernmental agencies in countries other than the United States or Canada.

No more than 5% of the Sub-Fund’s net assets may be invested in the debt and debt-related securities of any one issuer and nomore than 25% of the Sub-Fund’s net assets may be invested in debt and debt-related securities in any one industry. The Sub-Fund may invest up to 20% of its net assets in debt and debt-related securities not denominated in US Dollar.

The performance of the Sub-Fund’s portfolio of investments is measured against the Bank of America Merrill Lynch US HighYield Master II Constrained Index (the “Index”). The Investment Manager is, however, entitled at any time to change the Indexwhere, for reasons outside the Investment Manager's control, the Index has been replaced by another index or where anotherindex may reasonably be considered by the Investment Manager to have become the industry standard for the relevant exposure.

A change in Index proposed by the Directors will be subject to shareholder approval and disclosure in a revised supplement forthe Sub-Fund.

8



Nomura Funds Ireland - Asian Smaller Companies Fund

The investment objective of the Nomura Funds Ireland - Asian Smaller Companies Fund (the “Sub-Fund”) is to achieve long-term capital growth through investment in a portfolio of small capitalisation equity and equity-related securities listed in Asiancountries excluding Japan.

The Sub-Fund invests, under normal market conditions, primarily in small capitalisation equity and equity-related securities listedor traded on a recognised exchange in the countries covered by the MSCI All Countries Far East ex Japan Small Cap Index (the“Index Countries”).

The Sub-Fund may invest up to 20% of net assets in small capitalisation equity and equity-related securities listed or traded onany recognised exchange in non-Index Countries, provided that the business activities of the issuers of such securities are in theIndex Countries. The Sub-Fund may also hold exposure to the Index Countries through investment in such instruments asAmerican Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) or Non-Voting Depositary Receipts (“NVDRs”)and which may be listed on any recognised exchange in a non-Index Country.

The Sub-Fund may also seek to invest up to 20% of net assets in equity and equity-related securities of mid sized companies inAsian countries excluding Japan.

The Sub-Fund seeks to identify equity and equity-related securities, whose valuations are, in the opinion of the Sub-InvestmentManager, low in comparison to assets and profitability, and which may be expected to rise in the future. In addition to thesevaluation opportunities, the Sub-Fund will seek investments based on other strategic features as detailed below:

(a) equity and equity-related securities where changes to financial conditions, operations, strategy, dividend and sharebuy-back policies, are expected;

(b) equity and equity-related securities where potential for growth has been identified, including improved results andincreasing market share, as new business operations are developed and the underlying economy improves; and

(c) equity and equity-related securities relating to companies that have been identified as candidates for businessrestructuring, corporate governance reform or attractive merger and acquisition opportunities.

While it is intended to monitor the performance of the Sub-Fund as against the MSCI All Countries Far East ex Japan Small CapIndex (the “Index”), the Sub-Fund will not replicate the Index and may, by the nature of the bottom-up stock picking investmentapproach adopted by the Sub-Investment Manager, take positions in equity and equity-related securities which differ significantlyfrom the weight of such equity and equity-related securities in the Index.

Investors should note that due to the general nature of emerging markets, the Sub-Fund is likely to have a moderate annualisedvolatility.

Nomura Funds Ireland - Japan High Conviction Fund

The investment objective of the Nomura Funds Ireland - Japan High Conviction Fund (the “Sub-Fund”) is to achieve long-termcapital growth through investment in a concentrated, actively managed portfolio of Japanese equity securities.

The Sub-Fund shall invest, under normal market conditions, primarily in equity and equity-related securities listed or traded on arecognised exchange in Japan.

The Sub-Fund may invest up to 20% of its net assets in equity and equity-related securities listed or traded on any recognisedexchange outside Japan, provided that the business activities of the issuers of such securities are in Japan. It is anticipated that theSub-Fund will invest across the entire range of capitalisations (from small cap to large cap).

While it is intended to monitor the performance of the Sub-Fund as against the Topix Index (the “Index”), the Sub-Fund will notreplicate the Index and may, by the nature of the bottom-up stock picking investment approach adopted by the Sub-InvestmentManager, take positions in equity and equity-related securities which differ significantly from the weight of such equity andequity-related securities in the Index.

Investors should note that due to the highly concentrated nature of the portfolio, the Sub-Fund is likely to have a high annualisedvolatility.

9



Nomura Funds Ireland - Asia Ex Japan High Conviction Fund

The investment objective of the Nomura Funds Ireland - Asia Ex Japan High Conviction Fund (the “Sub-Fund”) is to achievelong-term capital growth through investment in a concentrated, actively managed portfolio of Asian (excluding Japan) equitysecurities.

The Sub-Fund shall invest, under normal market conditions, primarily in equity and equity-related securities listed or traded on arecognised exchange in the countries covered by the MSCI All Countries Asia Ex Japan Index (the “Index Countries”).

The Sub-Fund may invest up to 20% of its net assets in equity and equity-related securities listed or traded on any recognisedexchange in non-Index Countries, provided that the business activities of the issuers of such securities are in the Index Countries.

The Sub-Fund may also hold exposure to the Index Countries through investment in such instruments as American DepositaryReceipts (“ADRs”), Global Depositary Receipts (“GDRs”) or Non-Voting Depositary Receipts (“NVDRs”) and which may belisted on any recognised exchange in a non-Index Country. It is anticipated that the Sub-Fund will invest across the entire range ofcapitalisations (from small cap to large cap).

The Sub-Fund will seek to outperform the MSCI All Countries Asia Ex Japan Index (or any other index which replaces it or isconsidered by the Sub-Investment Manager to be the market standard in place of it and any such change in that index will benotified to shareholders in the semi-annual and annual accounts).

Investors should note that due to the general nature of Asian markets, and the highly concentrated nature of the portfolio, the Sub-Fund is likely to have a high annualised volatility.

Nomura Funds Ireland - Global High Yield Bond Fund

The investment objective of the Nomura Funds Ireland - Global High Yield Bond Fund (the “Sub-Fund”) is to achieve currentyield and capital gains through investment in a diversified portfolio of primarily high yielding globally issued debt and debtrelated securities.

The Sub-Fund shall invest in a diversified portfolio of primarily high yielding debt and debt-related securities issued globallyprincipally by companies, which are listed or traded on a recognised exchange. Investors should note that high yielding securitiesgenerally have a high volatility.

The Sub-Fund may invest in debt and debt-related securities issued by corporations, limited liability companies or limitedpartnerships, other forms of enterprise and in sovereign and quasi-sovereign debt and debt-related securities.

The Sub-Fund may hold equity and equity-related securities, which are listed or traded on a recognised exchange, that it receivesor purchases in connection with its ownership of certain debt and debt-related securities, such as defaulted high yield securities inthe course of reorganisation which are subsequently converted into equity and equity-related securities.

Under normal circumstances, the Sub-Fund will invest at least 80% of its net assets in debt and debt-related securities that arerated below investment grade by at least one rating agency or are unrated. No more than 30% of the Sub-Fund’s net assets may beinvested in debt and debt-related securities with a rating lower than B3/B - by both Moody’s and S&P, respectively or which aredeemed to be of equivalent quality by the Investment Manager.

Subject to Section 2.1 of Appendix 1 to the Prospectus, the Sub-Fund may invest up to 10% of its net assets in loans, loanparticipations and/or loan assignments, which constitute transferable securities.

No more than 5% of the Sub-Fund’s net assets may be invested in the debt and debt-related securities of any one issuer and nomore than 25% of the Sub-Fund’s net assets may be invested in debt and debt-related securities in any one industry (as defined byreference to Merrill Lynch Level 4 Industry Classification which comprises a detailed sector classification for every constituent ofthe Merrill Lynch global fixed income universe covering close to 50,000 securities).

The performance of the Sub-Fund’s portfolio of investments will be measured against the BofA Merrill Lynch Global High YieldConstrained Index. The Investment Manager is, however, entitled at any time to change the Index where, for reasons outside theInvestment Manager's control, the Index has been replaced by another index or where another index may reasonably beconsidered by the Investment Manager to have become the industry standard for the relevant exposure. A change in Indexproposed by the Directors will be subject to Shareholder approval and disclosure in a revised Supplement for the Sub-Fund.

10



Nomura Funds Ireland - Global High Yield Bond Fund (continued)

The Sub-Fund may also employ spot foreign exchange transactions, forward foreign exchange contracts and currency futures toseek to hedge the foreign exchange exposure of the assets of the Sub-Fund from the impact of fluctuations in the relevantexchange rates.

Nomura Funds Ireland - Global Frontier Emerging Market Equity Fund

The investment objective of the Nomura Funds Ireland - Global Frontier Emerging Market Equity Fund (The “Sub-Fund”) is toachieve capital growth primarily through investment in Equity and Equity-Related Securities of companies listed, traded orincorporated in global Frontier Countries.

The Sub-Fund will primarily invest in Equity and Equity-Related Securities listed or traded on a Recognised Exchange in thecountries covered by the MSCI Frontier Markets Index, S&P Frontier BMI Index and/or S&P Extended Frontier 150, (the“Frontier Countries”), provided that the Sub-Fund may also invest in Equity and Equity-Related Securities of companies based inthe Frontier Countries listed or traded on any Recognised Exchange in non-Frontier Countries.

The Sub-Fund may invest in Equity and Equity-Related Securities listed or traded on any Recognised Exchange in other countriesprovided that the business activities of the issuers of such securities are in the Frontier Countries as defined above.

Nomura Funds Ireland - Diversified Growth Fund

The investment objective of the Nomura Funds Ireland - Diversified Growth Fund (The “Sub-Fund”) is to deliver a positiveabsolute return by investing in a multi asset portfolio containing a diversified range of traditional and alternative investments,while managing risk efficiently. The target return is cash plus 5% per annum gross of investment management fee expense.

The Sub-Fund aims to achieve its investment objective by investing principally in Equity and Equity-Related Securities, Debt andDebt-Related Securities, Exchange Traded Funds (ETF) and other Collective Investment Schemes (CIS), indirect holdings inproperty and commodities, cash and financial derivative contracts (including futures, forward currency contracts, non-deliverableforward contracts (“NDFs”).

The Sub-Fund will have a well-diversified risk profile and aims to maximise portfolio efficiency by using the most efficientproducts in the market place that provide liquid, low cost exposure to the relevant asset class.

Nomura Funds Ireland - Global Dynamic Bond Fund

The investment objective of the Nomura Funds Ireland - Global Dynamic Bond Fund is to provide a combination of income andgrowth through investing principally in Debt and Debt-Related Securities with fixed or variable rates of income.

The Sub-Fund shall invest principally in Debt and Debt-Related Securities with fixed or variable (linked to inflation or otherindices) rates of income, issued by corporations, limited liability companies, limited partnerships, sovereign, governmentagencies, supranational or other issuers, which are listed or traded on Recognised Exchanges. In addition to direct investment inDebt and Debt-Related Securities, the Sub-Fund may also gain exposure to Debt and Debt Related Securities indirectly throughinvestment in financial derivative instruments.

There are no geographical restrictions as to the Debt and Debt-Related Securities that may be held, but a maximum of 30% of theNet Asset Value of the Sub-Fund may be invested in Debt and Debt-Related Securities of emerging market issuers.

The Sub-Fund may invest either in investment grade or sub-investment grade Debt and Debt-Related Securities, which have beenrated as such by at least one rating agency (either Standard & Poors or Moody’s). The Sub-Fund may also invest up to 30% of itsNet Asset Value in unrated securities (which are not rated by a rating agency), if the Investment Manager determines that thesecurity is of comparable quality to a rated security that the Sub-Fund may purchase.

No investment shall be made in equity securities provided, however, that equity securities up to 10% of the Net Asset Value maybe held as a result of investments in preferred securities, which have equity/warrant characteristics or as a result of acquisitions ofequity securities upon conversion or exercise of convertible bonds.

11



Nomura Funds Ireland - Emerging Market Local Currency Debt Fund

The investment objective of the Nomura Funds Ireland - Emerging Market Local Currency Debt Fund is to generate a total returnthrough a combination of capital gains and income gains.

The Sub-Fund seeks to achieve its objective principally by investing in local currency denominated emerging Debt and Debt-Related Securities and derivative instruments comprising forward currency contracts, non-deliverable forward contracts(“NDFs”), futures, interest rate swaps, cross currency swaps, credit default swaps, FX options and interest rate options.The Sub-Fund may, without limitation, also invest in non-local currency denominated emerging Debt and Debt-Related Securitiesand non-emerging Debt and Debt-Related Securities.

The Sub-Fund may invest in Debt and Debt-Related Securities issued by corporations, limited liability companies or limitedpartnerships and other forms of enterprise, and in sovereign, quasi-sovereign and supranational bonds which are listed or tradedon a Recognised Exchange.

The Sub-Fund will not invest in Debt and Debt-Related Securities rated below B3 or B- by Moody’s or S&P respectively. If anyDebt and Debt-Related Securities are downgraded, then they will be held within the portfolio until upgraded, or, disposed ofwithin 6 months, if not upgraded. The Sub-Fund may purchase unrated securities (which are not rated by a rating agency) if theInvestment Manager determines that the security is of comparable quality to a rated security that the Sub-Fund may purchase.Unrated securities may be less liquid than comparable rated securities and involve the risk that the Investment Manager may notaccurately evaluate the security’s comparative credit rating.

No investment shall be made in equity securities provided, however, that equity securities up to10% of the Net Asset Value maybe held as a result of investments in hybrid preferred securities which have equity/warrant characteristics or as a result ofacquisitions of equity securities upon conversion or exercise of convertible bonds or upon allotments to the bondholders.

Nomura Funds Ireland - Asia High Yield Bond Fund

The investment objective of the Nomura Funds Ireland - Asia High Yield Bond Fund is to generate income and capital growththrough investing primarily in a diversified portfolio of primarily high yielding Debt and Debt-Related Securities in Asia.

The Sub-Fund shall invest primarily in a diversified portfolio of high yielding Debt and Debt-Related Securities issued incountries covered by the Index (the “Index Countries”) or issued in other countries provided that the business activities of theissuers of such securities are in the Index countries as defined above.

The Sub-Fund may invest in Debt and Debt- Related Securities issued by corporations, financial institutions, limited liabilitycompanies or limited partnerships, other forms of enterprise and in sovereign and quasi-sovereign Debt and Debt-RelatedSecurities, which are listed on Recognised Exchanges.

Under normal circumstances, the Sub-Fund will invest at least 80% of its net assets in Debt and Debt- Related Securities that arerated below investment grade by at least one rating agency or are unrated. From time to time, the Sub-Fund may invest ininvestment grade Debt and Debt-Related Securities provided that no more than 20% of the Sub-Fund’s net assets may be investedin non-benchmark Debt and Debt- Related Securities which are rated as investment grade. The Sub-Fund will take a higher ratingof either Standard & Poors or Moody’s when determining a rating constraint. Investors should note that high yielding Debt andDebt- Related securities which are rated non-investment grade and/or unrated will generally have a high volatility.

The Sub-Fund may hold Equity and Equity-Related Securities that it receives in connection with its ownership of certain Debtand Debt Related Securities, such as defaulted securities in the course of reorganisation which are subsequently converted intoEquity and Equity-Related Securities. While certain Debt and Debt-Related Securities (i.e. convertible bonds) and Equity andEquity-Related Securities (i.e. convertible shares) may embed a derivative component (such as an option, which would give theholder the option to buy the underlying asset at a predetermined price), they will not embed any leverage.

The Sub-Fund shall primarily consist of securities denominated in US Dollars as well as the various Asian currencies included ofthe Index countries.

Nomura Funds Ireland - Asia High Dividend Fund

The investment objective of the Nomura Funds Ireland - Asia High Dividend Fund is to achieve income and long term capitalgrowth by investing in an actively managed portfolio of Asian (Ex-Japan) companies which offer an enhanced dividend yieldwith the potential for further dividend growth.

12



Nomura Funds Ireland - Asia High Dividend Fund (continued)

The Sub-Fund shall invest primarily in a diversified portfolio of Equity and Equity-Related Securities listed or traded on aRecognised Exchange in the countries covered by the Index (the “Index Countries”). The Investment Manager will selectcompanies that they believe offer superior dividend yields in comparison to similar companies in the Index Countries.The Sub-Fund shall also target companies whose management activities are expected to support the potential for dividend growthin the medium to long term. The Sub-Fund may invest up to 20% of its net assets in Equity and Equity-Related Securities listed ortraded on any Recognised Exchange in non-Index Countries, provided that the business activities of the issuers of such securitiesare in the Index Countries.

The Sub-Fund may also hold exposure to the Index Countries through investment in such instruments as American DepositaryReceipts (ADRs), Global Depositary Receipts (GDRs), Non-Voting Depositary Receipts (NVDRs) or Participatory Notes(P-Notes) and which may be listed on any Recognised Exchange in a non-Index Country. While such P-Notes may embed aderivative component (such as an option, which would give the holder the option to buy the underlying asset at a predeterminedprice), they will not embed any leverage.

In order to gain exposure to the asset class, the Sub-Fund may hold REITs (including REITs structured as collective investmentschemes), Stapled Securities and Business Trusts, which may be listed or dealt on a Recognised Exchange.

Nomura Funds Ireland - Asia Investment Grade Bond Fund

The investment objective of the Nomura Funds Ireland - Asia Investment Grade Bond Fund is to generate income and capitalgrowth by investing primarily in a diversified portfolio of primarily investment grade Debt and Debt-Related Securities in Asia.

The Sub-Fund shall invest primarily in a diversified portfolio of investment grade Debt and Debt-Related Securities issued in thecountries covered by the Index (the “Index Countries”) or issued in other countries provided that the business activities of theissuers of such securities are in the Index countries, as defined above.

The Sub-Fund may invest in Debt and Debt-Related Securities issued by corporations, financial institutions, limited liabilitycompanies or limited partnerships, other forms of enterprise and in sovereign and quasi-sovereign Debt and Debt-RelatedSecurities, which are listed or traded on Recognised Exchanges.

Under normal circumstances, the Sub-Fund will invest at least 80% of its net assets in investment grade Debt and Debt- RelatedSecurities. Investors should note that investment grade Debt and Debt-Related Securities may be subject to ratings downgrades bythe rating agencies during the holding period of the Debt and Debt- Related Securities. In the instance of one or more downgradesto below investment grade or otherwise, the Sub-Fund may continue to hold such securities. Such downgrades might affect thenet asset value of the Sub-Fund. No more than 30% of the Sub-Fund’s net assets may be invested in Debt and Debt-RelatedSecurities which have a rating of below investment grade or are unrated. The Sub-Fund will take a higher rating of eitherStandard & Poors or Moody’s when determining a rating constraint.

The Sub-Fund shall primarily consist of Debt and Debt-Related securities denominated in US Dollars as well as the various Asiancurrencies included in the Index countries.

The Sub-Fund may hold Equity and Equity-Related Securities that it receives in connection with its ownership of certain Debtand Debt-Related Securities, such as defaulted securities in the course of reorganisation which are subsequently converted intoEquity and Equity- Related Securities.

While certain Debt and Debt-Related Securities (i.e. convertible bonds) and Equity and Equity-Related Securities (i.e. convertibleshares) may embed a derivative component (such as an option, which would give the holder the option to buy the underlying assetat a predetermined price), they will not embed any leverage.

13



Nomura Funds Ireland - China Fund

The investment objective of the Nomura Funds Ireland - China Fund is to achieve long term capital growth through investment inan actively managed portfolio of Chinese securities.

The Sub-Fund shall invest, under normal market conditions, primarily in Equity and Equity-Related Securities of companieslisted or traded on Recognised Exchanges in the People's Republic of China (“PRC”), comprising Hong Kong SpecialAdministrative Region ("SAR"). The Sub-Fund may also invest in Equity and Equity-Related Securities listed or traded on anyRecognised Exchange outside the PRC, provided that the companies issuing such securities carry out a significant part of theirbusiness activities in the PRC. The Sub-Fund may also hold exposure to China through investment in such instruments asAmerican Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”) and which may be listed on any RecognisedExchange outside China.


The Sub-Fund may also invest in "A" shares of companies in the PRC. "A" Shares of companies in the PRC are sharesdenominated in Renminbi (the official currency of the PRC) and issued by companies in the PRC and listed on PRC stockexchanges.

The Sub-Fund may also invest from time to time in Debt and Debt-Related Securities issued by corporations, financialinstitutions, limited liability companies or limited partnerships, other forms of enterprise and in sovereign and quasi-sovereignDebt and Debt-Related Securities, which are listed or traded on a Recognised Exchange. Such Debt and Debt-Related Securitieswill be rated investment grade (BBB) by at least one rating agency (either Standard & Poors or Moody’s).

While certain Debt and Debt-Related Securities (i.e. convertible bonds) and Equity and Equity-Related Securities (i.e. convertibleshares) may embed a derivative component (such as an option, which would give the holder the option to buy the underlying assetat a predetermined price), they will not embed any leverage.

14


NOMURA FUNDS IRELAND - GLOBAL EMERGING MARKET EQUITY FUNDINVESTMENT MANAGER’S REPORTFor the half year ended 30th June, 2015

Investment Performance

1 Month 3 Month Year To Date 1 Year Since Inception*

Fund -3.44 1.88 3.11 -5.31 1.11

Benchmark -2.60 0.69 2.95 -5.12 1.99

Out/(Under) Performance -0.84 1.19 0.16 -0.19 -0.88Source BBH, % Returns in USD. Benchmark is MSCI Emerging Markets Index.

*Since Inception date is 17th December, 2013.

Performance Commentary

For the half year ended June 2015, on a net basis, the Fund recorded a return of 3.11%, compared with the benchmark return of2.95%, and therefore outperformed the benchmark by 0.16%. Relative gains were primarily generated by holdings in China,Russia and Egypt. Korea proved to be a challenging market, primarily due to weakness in the technology and auto sectors.

Investment Outlook

The outlook for emerging markets remains challenging. We are probably in the final phase of significant cyclical and structuraladjustment in many emerging markets. The general macro backdrop of weak commodity prices, strong dollar and Fed tightening,does not usually bode well for the emerging equity asset category. In fact, many investors and pundits are throwing in the towelon the emerging markets asset category, as the FT recently highlighted Time to Move Beyond ‘Emerging Markets.’

We have maintained that many of the traditional linkages of emerging markets as defined by index providers may be outdated andinappropriate and we are likely to see significant deviation form the MSCI EM benchmark. Furthermore, much concern has beenpriced in with emerging markets trading close to four year lows and 2016 sell side consensus earnings expectations that have beenrevised down by 23% over the past 12 months. We prefer to focus on bottom up stock investing rather than weigh in on pedanticdebate about the merits of the asset category. We can still find companies that should be able to sustain or improve returnsrelative to market expectations and any significant volatility should provide opportunities.

Our key areas of focus currently include long term secular and structural opportunities, including Indian health care and consumerstaples in North Asia. In some areas, we note the market may be too pessimistic, including the prognosis of China’s short termgrowth trajectory, which has led to significant corrections in Chinese autos and property—we have added to existing holdings inboth sectors. In other areas, the market may be too optimistic. EM financials, in many markets have seem limited earningsdowngrades in markets such as Brazil and South Africa despite deteriorating economies and rising risks of increasedprovisioning. We continue to seek opportunities in health care and non bank financial companies, especially insurers, which maybe more insulated from macro concerns.

15


NOMURA FUNDS IRELAND - INDIA EQUITY FUNDINVESTMENT MANAGER’S REPORT (CONTINUED)For the half year ended 30th June, 2015


1 Month 3 Month Year To Date 1 Year 3 Year Since Inception*

Fund 0.68 -2.16 6.72 16.44 49.75 57.26

Benchmark 0.29 -3.61 1.59 3.26 40.36 40.27

Out/(Under) Performance 0.39 1.45 5.13 13.18 9.39 16.99Source BBH; % Returns in USD. Benchmark is MSCI India Index.

*Since Inception date is 13th January, 2007.


For the half year ended June 2015, the Fund recorded a return of 6.72%, compared with the benchmark return of 1.59%, andtherefore outperformed the benchmark by 5.13%.

The Indian equity markets recorded new lifetime highs in early March before correcting, though still up marginally over theperiod under review. Markets have re-rated over the last year with the new government taking measures to improve sustainablegrowth. At the same time, there has been a sharp improvement in the Current Account and the FX Reserves position. These haveensured that the currency has seen relatively less volatility and downside even as there is a lot of turmoil globally. Over thisperiod the currency is down 0.95% vs the USD.

Another important feature of the markets has been the return of the domestic retail and institutional investor base. Inflows intoMutual Funds have been positive every month in the last 12 months, after being on the negative side since mid 2008. Over the lasttwo quarters, domestic equity inflows have been ~ US$ 4.2 billion compared to FII equity inflows of ~ US$ 6.2 billion. This hassupported the markets during periods of weakness and has also resulted in the outperformance of mid caps relative to thenarrower indices.

On the economic front, growth has clearly bottomed as indicated by the data - India’s GDP grew 7.5% (yoy) in the final quarterof FY15. Growth for the full fiscal year was at a four-year high of 7.3% (yoy), up from 6.9% in the previous year. CPI hasremained in the 4.5% - 5.5% band YTD, lower than levels yoy. This has afforded the RBI an opportunity to cut interest ratesthrice this year by a cumulative 75 bps. Banks have passed on a portion of this already. India’s monsoon season began well (Jun-Sep), with cumulative rainfall for 1-29 June at 18% above the long-term average, and better than official predictions. Sowing hasbeen better than in 2014 (a below-normal year), albeit slower than 2013. The jury is still out, as rains in July matter the most forfood-grain production.

The portfolio has been positioned with a pro-cyclical stance, towards quality private sector names in Financials, Industrials andConsumer Discretionary. The key underweights are traditionally defensive sectors of Staples and Healthcare which are trading atelevated valuations and also IT Services which is hurting from demand weakness and cross currency issues. In addition, weremain underweight sectors subject to global macro and domestic policy uncertainties viz Materials, Utilities and competition, vizTelecom. Our positioning has added significant value over the period.

Investment Outlook

We find no reason to change our long standing positive view of the global equity markets. Central Banks are generally expectedto maintain their accommodative monetary policies, whilst individual companies continue to focus on delivering shareholdervalue through buy-backs, higher dividends and merger and acquisition activities.

As is always the case, there are areas of concern. The Greek debt situation is one such, although we judge that the market hasalready factored in much of the potential impact of a default scenario. We acknowledge that the US will finally begin increasingpolicy interest rates sometime in the second half of this year. However, the pace will be slow and gradual and the currentsteepness of the yield curve already suggests that the impact has been priced into financial assets.

16


NOMURA FUNDS IRELAND - INDIA EQUITY FUNDINVESTMENT MANAGER’S REPORT (CONTINUED)For the half year ended 30th June, 2015

Investment Outlook (continued)

We believe India is favourably positioned in this global macro environment. The sharp improvement in the Current Account andthe FX reserves have ensured that the currency has seen relatively less volatility and downside even as there is a lot of turmoilglobally. We expect that India's currency should be able to weather this global volatility much better than other peers with largerDeficits and much better than in 2013.

The new Central government led by Mr Modi implemented a host of administrative reforms in its first year. An important onewas the elimination of the retail fuel subsidies which helped shore up government finances and removed pressure on the fiscaldeficit. This is being extended to other subsidies as well. Food subsidies in future will directly be credited to Bank accounts,eliminating leakages. The government has also addressed the coal shortage issue by better co-ordination among ministries,enabling Coal India’s production to ramp up significantly. Corporates have reported much easier dealings with the bureaucracyand significantly reduced red-tape. All these measures have bolstered the sustainable growth outlook for India and led to usmoving to further overweight domestic growth oriented sectors such as Consumer Discretionary, Financials and Industrials.

We are therefore positive on the medium term outlook. We expect that market returns would be driven largely by fundamentalimprovements in the economy (which is already happening) and in the corporate profitability (which is now bottoming). Boththese effects should drive a sharp uptick in corporate EPS growth which in turn would drive market returns. In addition, given thevaluation de-rating in the last few weeks, there is also room for valuations to normalize.

Sales growth for corporates came off sharply in the last few years due to the weak economy and in particular, the weakinvestment cycle. The new government has made investment recovery a key driver of its economic agenda. This is alreadyyielding fruit - some key successes have been a big increase in production of Coal India (now growing production at 10%), fastpace of project approvals (for example project awards in Roads in FY2015 was 7,900 km - more than double that of FY2014) anda sharp pickup in FDI (US$ 33 bn in FY2015 compared to US$ 22 bn in FY2014) etc.

We expect these measures to lead to a pickup in the sales growth trajectory for corporates. In the last 2 quarters, the fall incommodity prices has also dented the topline growth which should now be in the base going ahead.

The profitability for corporates is also expected to improve due to multiple factors. Gross Margins should be higher due to the fallin commodity prices being reflected in financials. The pickup in sales growth will provide an operating leverage impact boostingmargins further. Besides, with interest rate cuts now starting to flow through the system, we expect a sharp financial leverageimpact to flow through.

While FY2017 will mark the full year impact of all these, we will see these partly reflected from FY2016 itself. Current estimatesof EPS growth for the next 2 years are ~ 15%. Over the next few quarters of this fiscal, we believe these estimates can potentiallystart to get upgraded.

We are quite optimistic on the medium term outlook for Indian markets at this stage.

17


NOMURA FUNDS IRELAND - FUNDAMENTAL INDEX GLOBAL EQUITY FUNDINVESTMENT MANAGER’S REPORT (CONTINUED)For the half year ended 30th June, 2015



Fund -1.86 2.09 3.13 -1.54 41.97 99.97

Benchmark -2.35 0.35 2.07 0.71 44.34 113.82

Out/(Under) Performance 0.49 1.74 1.06 -2.25 -2.37 -13.85Source BBH; % Returns in USD. Benchmark is MSCI AC World Total Return Net Index.

*Since Inception date is 19th December, 2008.


For the half year ended June 2015, the Fund recorded a return of 3.13%, compared with the benchmark return of 2.07%, andtherefore outperformed the benchmark by 1.06%.

Global equity markets advanced during the first quarter of 2015. Stocks declined through mid-January amid sharply falling oilprices, uncertainty surrounding the election in Greece, negative wage growth in the US, and weak earnings reports from major USbanks. Afterwards, stocks rallied as it responded well to ECB’s QE announcement and recovery in oil prices. Toward mid-March,expectations for a resolution to the Greek debt impasse and a ceasefire agreement in Ukraine supported the market. Moreover, thestrong performance of Chinese stocks which was led by the monetary easing and the government’s supportive stance contributedto the overall equity performance. However, profit taking weighed on the markets at the end of the quarter.

Our overweight position in the Automobiles & Components of Consumer Discretionary sector contributed positively to the fundperformance as shares such as Volkswagen AG, Fiat Chrysler Automobiles N.V., and Peugeot SA surged during the quarter. Onthe other hand, underweight position in the Health Care sector had a negative impact, as Pharmaceuticals Biotechnology & LifeSciences names were favored through the quarter.

As for regional allocations, Emerging Markets and Developed Markets both detracted from the fund’s performance.

Global equity markets slightly advanced during the second quarter of 2015. The equity markets advanced through May asinvestors reassessed their concerns regarding a possible early rate hike by the Federal Reserve. A short rebound in oil prices alsolifted the markets. In addition, expectations for continued QE by the ECB supported the markets despite the lack of progress inbailout negotiations between Greece and the EU. Stocks retreated in June following the release of US employment figures thatwere stronger than forecast, which raised expectations that the Federal Reserve Bank might bring forward the timing of its firstpolicy interest rate hike. At the end of the quarter, global equities fell over concerns on Greek debt talks.

Our overweight position in the Financials sector contributed positively to the fund performance as Chinese bank shares surgedhigher during the second quarter. On the other hand, stock selection within the Consumer Discretionary sector, especially theunderweight positions in some e-commerce stocks detracted from the fund’s performance as the market now expects strongerbusiness performance through rising demand.As for regional allocations, the overweight exposure to Emerging Markets contributed positively, while the underweight positionin Developed Markets had a negative effect.

Investment Outlook

As the Fundamental Index Strategy calculates its portfolio weights by using company reported fundamental data, it is notdesigned to rely on any top-down decisions or provide any specific economic projections. We review our target weights once ayear based on the fundamental measures of size, by using historical fundamental factors such as Sales, Cash flow, Dividends, andBook Value. Based on these measures of fundamental value, the fund currently holds overweight positions relative to the MSCIAll Country World Index in the Energy, Telecommunication Services, and Financials sectors. Key underweight positions are heldin the Information Technology, Health Care, and Consumer Discretionary sectors.

As for country allocation, the fund is currently overweight in China, Japan, France, and Russia, while holding underweightexposures to the United States, Switzerland, the United Kingdom and Denmark. Overall, the fund is overweight in emergingcountries and underweight in developed countries.

18


NOMURA FUNDS IRELAND - JAPAN STRATEGIC VALUE FUNDINVESTMENT MANAGER’S REPORT (CONTINUED)For the half year ended 30th June, 2015



Fund -2.13 7.60 17.21 31.09 124.90 99.26

Benchmark -2.42 5.84 16.98 31.55 124.97 88.99

Out/(Under) Performance 0.29 1.76 0.23 -0.46 -0.07 10.27Source BBH; % Returns in USD. Benchmark is Topix Index.

*Since Inception date is 26th August, 2009.


For the half year ended June 2015, the Fund recorded a return of 17.21% compared with the benchmark return of 16.98%, andtherefore outperformed the benchmark by 0.23%.

Starting in January, the investor sentiment was pulled in different directions in response to unfolding events in Europe. Foreignexchange markets were stunned by the Swiss central bank’s abrupt scrapping of the franc’s cap against the euro but this wasfollowed in short order by the more welcome announcement that the European Central Bank would embark on a programme ofquantitative easing. However, celebrations were short-lived as within a few days the Greek election had produced a Syrizagovernment. These events caused an unwelcome, if temporary, rise in the yen which resumed its old role as a safe haven.However as January turned into February investor sentiment in Japan took a turn for the better as a result of hopes of animprovement in the domestic economy and encouraging corporate earnings results for the October-December period. The rallycontinued through March as investors focussed on the resilient earnings outlook.

April began in a bullish mood as sentiment was buoyed by signs of an improvement in the Japanese domestic economy, ongoingweakness in the yen and hopes for encouraging corporate earnings reports for the fiscal year ending in March. In the event,reported earnings did not disappoint, coming in slightly above expectations, and corporate guidance for the current fiscal year wasencouraging. The market faltered in June, suffering its first monthly decline of the year as investor sentiment took a turn for theworse in reaction to the debt default by Greece and a steep correction in the Chinese equity market, albeit after an unsustainablystrong bull phase. With Japanese economic releases over the month proving somewhat mixed and few major positive surprises interms of corporate news, many investors moved to lock in their profits following the strong market gains of recent weeks. Thiscertainly applied to foreign investors who turned net sellers in June after having been consistence supporters of Japanese equitiesfor most of the year.

Japanese economic releases over the first half of the year showed gradual recovery however overall it was decidedly mixed. RealGDP growth for the January-March quarter of 2015 came in at 3.9% quarter on quarter, annualised, with strong private capitalexpenditure and private consumption notable contributors to the numbers. With consumer spending, spirits were raised by a sixthconsecutive monthly increase in cash wages in May; +0.6% year on year, and a favourable outcome of the spring wagenegotiations. Japan’s unemployment rate also showed positive signs, declining to 3.5% in May, its lowest level since February1997, and the active job opening ratio also improved to its highest level in 20 years. By contrast, production data was rathermixed and headline CPI has remained disappointing, increasing by 0.5% in May, well below the Bank of Japan’s 2% target.Industrial Production index failed to paint a picture of a robust expansion, the May increase of in was below the consensus figureof 0.9% and analysis of production forecasts only suggested a slow recovery in activity over the next couple of months as theeconomy continues to adjust to the consumption tax increase at the beginning of April.

There were no major changes to monetary or fiscal policy over the first half of the year although many investors are looking formore easing by the Bank of Japan should inflation numbers slip further. The Government Pension Investment Fund (GPIF) hascontinued to add to its holding of domestic equities, albeit at a more moderate pace than in the previous quarters.

In terms of sectors, Financial sectors were the outstanding performers, with the Insurance sector the single best performer aslonger-term earnings expectations were revised up on an uptick in bond yields and ongoing merger and acquisition activity withinthe sector. Banks and the Other Financing sector were also strong performers.

19


NOMURA FUNDS IRELAND - JAPAN STRATEGIC VALUE FUNDINVESTMENT MANAGER’S REPORT (CONTINUED)For the half year ended 30th June, 2015

Performance Commentary (continued)

With the yen declining by only a very small amount against the dollar over the period, there was little incentive for the export-orientated sectors such as Electric Appliances, Transportation Equipment and Machinery, all of which lagged the wider market.Most defensive sectors including the Pharmaceutical and Food sectors performed strongly over the first half of the year.

Over the first half of 2015 the fund underperformed the benchmark. On an attribution basis, both sector allocation and stockselection were negative. Stock selection was most effective in the Information & Communication, Machinery, and Servicessectors. Results were most disappointing in the Electric Appliance, Chemicals, Transportation Equipment, and Glass & Ceramicsand Chemical sectors.

As far as individual stocks were concerned, the positions contributing the most to performance over the period includedoverweights in telecommunications giant NTT as the company outperformed on the back of a better than expected full yearresults of the company and its subsidiaries, Sumitomo Electric Industries, NSK, and Sohgo Security Services. The detractorsduring the period included Mazda Motor which underperformed as the euro tumbled against the yen, Hitachi and Asahi Kasei.

Investment Outlook

In the long-term we believe that corporate earnings results and future prospects will continue to be the main drivers of Japanesestock prices. The last full year reporting season was a positive one and we believe that the outlook for earnings over the comingmonths looks encouraging, with the risk remaining on the upside.

Aside from earnings numbers, over the coming months, investors will be looking for further progress in the government’sstructural reform programme. Recent developments in respect of corporate governance have been encouraging and are animportant element in the reform programme, however, it is only one element and we should not neglect the other initiatives whichwill also contribute to raising corporate profitability and ultimately shareholder returns.

Our primary focus remains on the long-term investment theme of improving returns at a corporate level. However, it would beunrealistic to expect all companies to embrace this challenging new world and make the, often radical and painful, changesnecessary to significantly lift profitability. Hence, we remain highly selective in our stock picking, employing a disciplined andresearch focused approach in order to identify the winners and avoid the losers.

We aim to find opportunities in stocks that are significantly undervalued in relation to their potential and where the combinationof a competitive core business and progressive management means that there are good prospects for that potential being realised.In essence, we want to see management that both understand the potential of their respective business and that are not afraid toundertake the restructuring necessary to raise returns.

Given our ‘bottom-up’ approach we look for attractive individual investment opportunities across the market and hence our sectorallocation is purely a reflection of our stock decisions. That having been said, at the end of June, relative to the benchmark, theportfolio was significantly overweight the Insurance, Nonferrous Metals and Machinery sectors. The largest underweightpositions were in the Pharmaceutical, Food and Land Transportation sectors.

20


NOMURA FUNDS IRELAND - US HIGH YIELD BOND FUNDINVESTMENT MANAGER’S REPORT (CONTINUED)For the half year ended 30th June, 2015



Fund -1.81 -0.32 1.84 -1.31 27.47 142.96

Benchmark -1.51 -0.05 2.49 -0.54 21.85 134.65

Out/(Under) Performance -0.30 -0.27 -0.65 -0.77 5.62 8.31

Source BBH; % Returns in USD. Benchmark shown is B of A Merrill Lynch US High Yield Master II Constrained Index.*Since Inception date is 31st March, 2009.


For the half year ended June 2015, the Fund recorded a return of 1.84%, compared with the benchmark return of 2.49%, andtherefore underperformed the benchmark by 0.65%.

Dynegy Holdings has been a strong contributor to relative performance. Dynegy priced a $5.1bln 3-tranche deal on October10th. The deal will finance the majority of the acquisition of coal and gas assets from Duke Energy and private equity firmEnergy Capital Partners.

Tenet Health also added to performance. Tenet Health and other hospitals led a rally among health-care companies as the USSupreme Court upheld a key piece of President Barack Obama’s Affordable Care Act, lifting the main threat hanging over theindustry’s prospects. Boyd Gaming also added to performance as Las Vegas casino revenues increased in June.

Other issuer contributors to performance have included Frontier Communications, California Resources, and Intelsat.

From a sector perspective, an underweight and positive issuer selection in the Specialty Retail and Packaging sectorscontributed to relative performance. Negative security selection and asset weighting in the Energy – Exploration & Productionand Metals/Mining Excluding Steel sectors detracted from performance YTD.

Investment Outlook

High yield bond prices got a boost in the first half of April thanks to record highs for stocks, a permissive Federal Reserve(Fed), and a steady bid in the energy sector – which eventually subsided alongside a surge in global bond yields, rising ETFoutflows, and better two-way flow in energy bonds. 1Q15 GDP came in well below expectations, growing at an annualised rateof 0.2% q-o-q. Stripping out inventory investment, which contributed 0.7pp to growth, real final sales contracted by 0.5% q-o-q. Net exports and business investment in structures were the primary reasons for the slowdown, subtracting 1.25pp and 0.75ppfrom growth, respectively. The west coast port disruptions in the first half of Q1, rapid declines in investment in the oil and gassector, the stronger dollar, weak foreign growth, and inclement weather all weighed on 1Q15 economic activity.

Oil rallied strongly thanks to the falling rig count, leading to a particular rally in energy bonds. Euro high yield continued itsQE related strength and is up 4.91% YTD, though it is weakening a little as European government bond yields rise. AsEuropean government yields moved back up, US Treasury yields also moved up, muting the returns of both US and EuropeanBBs in the rally. Emerging markets, both sovereign and corporate, were very strong as a dovish Fed encourages flows back toEM, and many countries benefit from stronger oil. Oil exporters like Venezuela and Russia had strong rallies, and Brazil alsorallied.

High yield bonds provided carry-like performance in May despite heightened volatility across Treasuries, FX, commodities,and equities. Both high yield bonds and leveraged loans performed well compared to other fixed income asset classes in May,but returns were subdued over strong primary market issuance and outflows from mutual funds. In May, high yield new issuevolume totaled $35.0bn, a 7% month-over-month decrease and the fourth highest monthly total over the last twelve months.Weekly volume began the month strong, with $11.4bn pricing out of the gate (the 4th highest total YTD), but declined to$8.2bn, $6.5bn, and $6.7bn over the next three weeks. High yield bond mutual funds reported a third consecutive outflow inMay.

21


NOMURA FUNDS IRELAND - US HIGH YIELD BOND FUNDINVESTMENT MANAGER’S REPORT (CONTINUED)For the half year ended 30th June, 2015


The continuing trend of investment grade (IG) debt issuance to fund share buybacks has been a concern for most marketparticipants. Activist shareholders have pressured companies to either split up, or engage in debt-financed repurchases. Wethink that this is a negative trend not only for the IG market, but also for the overall economy, as companies have used cash anddebt to buy back shares to the detriment of capital expenditure spending and investment. High yield new issuance continues tobe focused on re-financing, which we view as positive. In our opinion, the overall quality of supply in high yield remains strongas companies continue to refinance higher-coupon debt, lower their overall cost of capital, and extend maturities. Further, CCC-rated issuance has dropped to 13% YTD 2015, down from the peak of 33% in 2007.

High-yield bond prices came under pressure in June amid a rise in Treasury yields, deteriorating technicals, and heightenedvolatility in equities. Spreads widened during the month due to weakness in the oil and commodity sectors, compounded byfears about Greece late in the month. In a sudden turn of events, the Greek government announced that a referendum would beheld on Sunday, July 5th, on the draft deal submitted by the European Union (EU), European Central Bank (ECB), andInternational Monetary Fund (IMF) on June 25th. The news of a Greek referendum saw global equities drop sharply, whereasglobal government bond yields were retracing the entirety of the previous week’s sharp increase. This move by the Greekgovernment introduced a new element of instability given the expiration of the program and the IMF repayment due on June30th. The Euro group turned down a request for a short-term extension to the existing program and the ECB voted to maintainthe current ELA cap, events which led to an imposition of capital controls.

Aside from Greek related volatility, the fundamentals of the US high yield market remain positive. The US economy has steadymomentum and the US consumer and corporate sectors have delivered. We feel that the overall quality of supply in high yieldremains strong as companies continue to refinance higher-coupon debt, lower their overall cost of capital, and extendmaturities. CCC-rated issuance has dropped to 13% YTD 2015, down from the peak of 33% in 2007. Refinancing, andmoderately levered M&A in the cable and health care sectors, are the primary use of proceeds (UOP), and regulators havepressured major US underwriters to avoid excessively levered transactions (i.e. discouraging the issuance of bonds >6.0xdebt/EBIDTA). Interest coverage is much improved in high yield and the maturity wall has been pushed out beyond 2019. Wealso think that there will be steady demand for high yield as global monetary easing outside of the US persists. Pension plans,insurance companies, and other long-term investors view the asset class as attractive at yields of 6.51%, OAS of 490bps, andduration of 3.95, as of June 30, 2015.

22


NOMURA FUNDS IRELAND - ASIAN SMALLER COMPANIES FUNDINVESTMENT MANAGER’S REPORT (CONTINUED)For the half year ended 30th June, 2015


1 Month 3 Month Year to date 1 Year Since Inception*

Fund -4.37 5.22 10.68 6.19 16.62

Benchmark -5.46 6.65 12.50 5.00 13.45

Out/(Under) Performance 1.09 -1.43 -1.82 1.19 3.17Source BBH; % Returns in USD. Benchmark is MSCI All Countries Far East ex Japan Small Cap Index.

*Since Inception date is 12th March, 2013.


For the semi-annual review period ending June 2015, the Fund recorded a return of 10.68%, compared with the benchmarkreturn of 12.50%, and therefore underperformed the benchmark by 1.82%.

Attribution analysis shows that the country allocation effect has detracted significantly from the relative performance, while thestock selection effect was positive.

Country allocation results from the underweight exposures to Taiwan and China were positive. However, the underweightexposure to Korea and the overweight positions in Thailand, Malaysia, Indonesia, the Philippines and Singapore detracted fromthe relative performance.

In terms of stock selection, Taiwan, Hong Kong, the Philippines, China, Thailand and Malaysia all added value, while stockselection outcomes in other countries were negative.

The residual cash balance had a negative effect during this review period.

Positive stock selection contributors such as Boer Power (China), Wasion Group (China) and Lotte Chilsung (South Korea)contributed significantly to the relative performance. However, stocks such as Boustead Singapore (Singapore), PT ArwanaCitramulia (Indonesia) and Pan-United (Singapore) detracted from the portfolio’s performance.

Investment Outlook

The Asian investment team recently completed a two-day Extended Pacific Basin Investment Meeting in Singapore. Thisinvestment strategy discussion was attended by Pacific Basin investment professionals located in Malaysia, Hong Kong,Shanghai, Tokyo and Frankfurt. It was concluded that, on balance, there was no reason to change our long standing positiveview of the global equity markets. Central Banks are generally expected to maintain their accommodative monetary policies,whilst individual companies continue to focus on delivering shareholder value through buy-backs, higher dividends and mergerand acquisition activities.

There were some areas of concern. The Greek debt situation was highlighted although we judged that the market had alreadyfactored in much of the potential impact of a default scenario. We also acknowledged that the US will finally begin increasingpolicy interest rates sometime in the second half of this year. However, the pace will be slow and gradual and the currentsteepness of the yield curve already suggests that the impact has been priced into financial assets.

For the Asia ex-Japan markets, the discussions focused as always on China and Hong Kong. Having added to the countryexposures at the right time, we have maintained small overweight positions in these two markets. Both have been majorbeneficiaries of spectacular moves in the China A-share market. We acknowledge that valuations are high and that recentvolatility could suggest the bull market is over. However, our judgment is that nine months is too short a period; therefore,while short-term volatility cannot be ruled out, further gains are likely. This is a bull market, sanctioned and supported by theChinese Government to help transition the economy away from an emphasis on Fixed Asset Investment (FAI) towardsconsumption and services. The government still has considerable policy levers available to it. Real interest rates are too highand can be cut aggressively, while the reserve requirement ratio can also be reduced. Most institutional savings polls indicatevery little exposure to equities, but this is likely to rise. Furthermore, equities have replaced property and wealth managementproduct as savings vehicles for individual investors.

23


NOMURA FUNDS IRELAND - ASIAN SMALLER COMPANIES FUNDINVESTMENT MANAGER’S REPORT (CONTINUED)For the half year ended 30th June, 2015


However, our view is that the key beneficiary of growth in both financial services and the stock market will be Hong Kong,where most of the capital raising and financial services will be conducted. Stocks are also reasonably valued, so we haveincreased the weight further. Property and banks are our preferred sectors.

Funds for these purchases will be sourced from our cash holdings, which have grown from recent dividend payments, and fromthe decision to move from over to underweight in Thailand. Two years ago, our main market call was to hold a 7% pointoverweight exposure to the ASEAN markets. We are now 1.5% points underweight. Thailand has held up well so far in spite ofa sharp deceleration in the economy, but the political impasse is an obstacle that could delay the implementation of muchneeded infrastructure projects. Falling agricultural prices are also adversely impacting rural areas where household debt levelsare already uncomfortably high. However, structural issues have concerned us most. Thailand is aging rapidly and the cost oflabour is rising. Unfortunately, the education system is not producing a sufficiently skilled workforce and corporate R&Dexpenditure remains relatively low. As such, Thailand in general is not equipped to move up the value chain except in activitiessuch as healthcare and tourism. The Philippines is now our only overweight position in the ASEAN markets. Our positive viewrests on the strong economic growth prospects and relatively low consumer debt. However, the Presidential election due nextyear could cause short term weakness. We will use this as an opportunity to raise the exposure further.

Our sector allocation remains underweight in higher yielding bond proxies such as utilities, as we believe the global interestrate cycle has turned and consumer staples now look very expensive. We also believe it is too early to add to late cycle sectorssuch as energy and resources. Rather, the bulk of our investments are in the financials, property and consumer sectors – themid-cycle beneficiaries.

24


NOMURA FUNDS IRELAND - JAPAN HIGH CONVICTION FUNDINVESTMENT MANAGER’S REPORT (CONTINUED)For the half year ended 30th June, 2015


1 Month 3 Month Year To Date 1 Year Since Inception*

Fund -1.44 1.81 16.02 32.87 47.69

Benchmark -2.42 5.84 16.98 31.55 46.62

Out/(Under) Performance 0.98 -4.03 -0.96 1.32 1.28Source BBH; % Returns in USD. Benchmark is Topix Index.

*Since Inception date is 7th August, 2013.


For the half year ended June 2015, the fund recorded a return of 16.02% return while the Tokyo Stock Price Index (TOPIX)recorded a return of 16.98% thus underperforming the index by 0.96%. Monetary easing measures implemented around theworld while anticipation for improved shareholder returns by Japanese companies lead to inflow of assets to the Japaneseeconomy. Announcement of equity purchase programmed by the Government Pension Investment Fund (GPIF) and PostalBank also assisted with the demand recovery.

Monetary easing measures around the world as well as steady corporate earnings result for FY2014 supported the steadyperformance of the equity market. However, at the end of the half year, the equity market plummeted due to the appreciation ofYen and the global impact over the Greek debt crisis. Although the Japanese Equity market fell back in June after consecutiverise from January to May, it ended with an overall positive return over the half year from January to June.

In the January to March quarter, Consumption and Information/System sectors outperformed the market on the back ofpositive prospects for domestic demand. The Medical sector also surged due to reports of potential breakthrough drugs.Meanwhile, many investors focused on potential changes in corporate attention to shareholder value. Companies that recentlyannounced plans to lift their pay-out ratio, like Fanuc saw their share prices soar accordingly. By April to June quarter,Financials and Communication sectors that had fallen in March picked up, and outperformed the market. Large cap stocks withattractive valuations received steady inflows from overseas investors. In the Financial sector, the major banking groups andinsurance companies benefitted from the improved domestic economic conditions.

Economic data from Japan have been rather mixed during the April to June quarter. Machinery orders in April increased by3.8% (mom) despite the consensus view of -2.1%. On the other hand, figures relating to production activity have so far failedto show a return to steady growth. The Industrial Production Index fell by -2.2% (mom) in May. Export volume in May alsodeclined by -3.8% (yoy), while exporters have yet to capitalise fully on the supportive yen exchange rates. Domestic demandfigures seem to offer brighter prospects than production activity, as Household Spending in real terms increased by 4.8%(yoy)in May, outpacing the consen

nomura funds ireland plc interim report and unaudited ...€¦ · class a us$ hedged usd 30th...

Documents