Neuberger Berman has bolstered its fixed income Ucits offering with the launch of the Neuberger Berman Global Opportunistic Bond fund.
The flexible Ucits fund seeks risk-adjusted returns by investing in a diversified mix of fixed rate and floating rate debt securities across sectors.
The strategy will be co-managed by Andrew Johnson, head of Global Investment Grade Fixed Income, Jon Jonsson, senior portfolio manager global fixed income, Ugo Lancioni, head of Currency Management, and Thanos Bardas, head of Rates, supported by Neuberger Berman’s 129-strong global fixed income team.
The strategy of the Neuberger Berman Global Opportunistic Bond fund replicates that Neuberger Berman’s fixed income team runs in segregated accounts since October 2012 and has delivered an annualised 4.6% return to 31 December 2016.
The Neuberger Berman Global Opportunistic Bond Fund will be a sub-fund of the Dublin-domiciled Ucits fund umbrella, Neuberger Berman Investment Funds plc. It is registered for sale in the UK and is in the process of being registered across European and Asian markets.
Jonsson said: “We anticipate periods of heightened volatility for world bond markets throughout 2017 so believe it will be a year where it will be necessary to alter strategy several times on changing policy and economic signals. US treasury yields have already risen steeply on heightened inflation fears and may have further to go as president-elect Donald Trump’s policies become reality.
“In the US, our portfolio seeks a diversified spread exposure, with an emphasis on the US consumer through non-agency RMBS, reflecting comfort with the underlying fundamentals, and also a mix of high yield and bank loans on solid US growth, stronger corporate profits, and the likely pro-growth policy.
“In Europe, there are growing political concerns surrounding the forthcoming elections, while there are question marks over the durability of the ECB’s bond-buying program. We expect to have a short exposure to German sovereign yields as the long end of the yield curve could begin to look vulnerable as we see higher yields and a steeper curve in the Euro area against a backdrop of a gradually improving economic outlook.”
Neuberger Berman had $120bn of fixed income assets under management as at 30 September 2016.