Neuberger Berman has launched a range of European fixed income strategies for its recently-hired Paris-based bond team.
The new Ucits funds will be managed by a team of six members led by Patrick Barbe, who joined the firm earlier this year from BNPP AM. At this company, Barbe was the chief investment officer of Euro Sovereign & Aggregate Fixed Income and responsible for the management of approximately €49bn in AUM.
The Neuberger Berman Euro Short Term Enhanced Cash Fund aims to outperform its cash benchmark by 1% over a one-year investment horizon with a volatility limit of 1%.
The Neuberger Berman Euro Opportunistic Bond Fund seeks to outperform the BBG Euro Aggregate Index by 1% over the three-year horizon based on an high conviction approach – with interest rate duration positioning between +2 and +8 years and a volatility limit of 4%.
The Neuberger Berman Euro Bond Absolute Return Fund aims at outperforming cash by 3.5% over a three-year horizon irrespective to market conditions – utilising interest rate duration positioning within a range of short by three years to long by six years, with a volatility limit of 6%.
Patrick Barbe said: “At the global relative-value level, we consider recent market pessimism towards Europe to be overdone. Growth has disappointed this year relative to the unsustainable levels it reached in 2017, but it remains above trend.
“In addition, the euro is cheap against the dollar, financial conditions are still loose and the ECB leans toward the accommodative. By contrast, super-bullish risk premiums are priced into US assets despite uncertainties around the strong dollar, the pace of rate hikes and the fiscal clean-up required once tax policy stimulus wears off.”