Nikko Asset Management will launch a Luxembourg-domiciled Global Credits UCITS fund on Wednesday, to be managed by Holger Mertens, head portfolio manager of global credit, aided by the firm’s Global Credit teams based in London, Tokyo, Singapore, Sydney, Auckland and New York.

The fund’s return target is 1.5 percent above the Barclays Global Aggregate Corporate Index with an absolute return target of 4 percent.

The team ascribes to an active investment model, based on fundamental research on mispricings in global credit markets, applied to a worldwide portfolio of 70-120 corporate bonds.

“We believe 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,” said Holger Mertens.

The launch represents the latest in a series of UCITS fund launches from Nikko AM. Earlier this year, the firm launched a Japan Focus Equity UCITS and revealed an Asia ex-Japan, Global Equity and Multi-Asset UCITS in 2015.