Nikko Asset Management’s London-based global fixed income team has secured a series of Japanese institutional mandates for the firm focussing on high credit quality solutions with high yields mainly in the US fixed income market.

Japanese institutional clients are turning toward global fixed income products as the Bank of Japan’s decision to move to negative interest rates has pushed Japanese government bonds to negative yields.

Nikko’s co-head of global fixed income, Andre Severino, said “From the experience we have gained in Europe since June 2014 (after the ECB introduced negative rates), we expect greater Japanese demand for global fixed income in the current climate.”

In the wake of this shift towards fixed income products, Nikko AM’s global fixed income team has grown substantially according to the firm.

Over the last two years the firm has made several key hires in order to service its increasing client base, including the hire of three new portfolio managers, Steve Williams in the core solutions group, Raphael Marechal covering emerging market debt and Holger Mertens in global credit.