Neuberger Berman extended its multi-asset solutions with the launch of two Ucits Funds – the multi-asset risk premia fund and the multi-asset class income fund.
Erik Knutzen, CIO, multi-asset class at Neuberger Berman and lead manager on the multi-asset class income fund said, “A combination of low interest rates, low inflation, muted economic growth and elevated valuations across many traditional asset markets is inspiring investors to look for alternative sources of robust returns and diversification to meet their goals.”
Ajay Jain, head of multi-asset class portfolio management and co-lead manager of the Neuberger Berman multi-asset risk premia fund added, “Systematic alternative risk premia-based strategies offer investors exposure to sources of return that can be strongly diversifying from factors that have historically been rewarded over the long-term. The fund has long/short positions in deep, liquid markets across equities, fixed income, currencies and commodities with managed volatility targeting 5%, and aims to deliver positive absolute returns over a cycle, regardless of broad market performance.”
The fund utilises straightforward, yet highly researched definitions of risk premia and seeks to exploit four styles – value, momentum, carry and liquidity, which are combined into a portfolio using a risk parity-based approach. The fund is well diversified and not overly-concentrated in any style, asset class, or premia and investors have a high degree of transparency into the underlying premia and drivers of return.
Erik Knutzen further added, “For those seeking income, traditional sources of yield may no longer adequately meet the needs of investors in the current low rate environment. We believe thoughtful diversification across multiple uncorrelated income sources is the best avenue to enhancing income yield and dampening volatility.”
The Neuberger Berman multi-asset class income fund seeks to generate attractive levels of income by utilising a best ideas approach to take advantage of multiple, uncorrelated, income sources – in both traditional and alternative assets. In fixed income, the Fund will seek opportunities in global sovereigns and credit, EMD, high yield and senior loans. In equities, it will target high dividend global equities, global REITs and MLPs. In alternatives, it will allocate to absolute return strategies, risk premia and options. The fund also implements tactical investment opportunities and currency overlays.
These new funds complement the Neuberger Berman global dynamic asset allocator fund, which launched in September 2015 and aims to generate absolute returns by systematically allocating to selected macro diversified growth opportunities across all asset classes within a well-defined risk framework. This fund is designed to capitalize on fundamentally driven tactical positioning.
The multi-asset risk premia fund and the multi-asset class income fund are sub-funds of the Irish-domiciled Ucits fund umbrella, Neuberger Berman investment funds plc. The multi-asset risk premia fund launched on 22nd December 2016 and the multi-asset class income fund on 28th December 2016. They are both registered for sale in Switzerland and the UK and across Europe and Asia.