Neuberger Berman launches Strategic Income Fund in Australia


Global asset manager Neuberger Berman has announced the launch of the Neuberger Berman Strategic Income Fund in Australia (“the Fund”), designed to offer investors access to a diversified mix of fixed income assets under varying market environments.

The Fund aims to maximise total return from high current income and long-term capital appreciation by opportunistically investing in a wide range of fixed income assets, such as investment grade, high yield and emerging market debt.

Unlike traditional fixed income products, the Fund’s sector and duration allocation is actively managed to adapt to changing market conditions. It adopts a flexible multi-sector bond strategy that invests across the fixed-income universe with the ability to go beyond the benchmark[1] .

“We believe a flexible bond strategy is the best way to navigate the market in uncertain times, and our strategy seeks to provide high current income whilst preserving capital in turbulent markets.” said Matt Thompson, Head of Intermediary Distribution at Neuberger Berman.

The Neuberger Berman Strategic Income Strategy (“the Strategy”) was first launched as a fund vehicle in the US[2] in 2003 and subsequently launched in Europe[3] in 2013. Portfolio diversification and a dynamic approach to duration management and sector allocations have benefitted the Strategy’s historical performance, particularly during challenging market environments. In the US, the fund has delivered positive returns in 13 years out of its 15 years history including volatile years such as 2008, 2011 and 2013.

“Year after year, no one fixed income sector consistently outperforms. A dynamic and flexible approach to fixed income is required to capitalize on investment opportunities amidst changing market conditions” Mr Thompson added.

The Fund allows investors to access the expertise and proven investment capabilities of Neuberger Berman’s fixed income and multi-sector specialists, including Brad Tank, Chief Investment Officer, Ashok Bhaita, Deputy Chief Investment Officer and Jon Jonnson, Senior Portfolio Manager, who each have more than 20 years’ experience.

As of 30 June 2019, Neuberger Berman managed over US$151 billion in fixed income alone.

[1] Bloomberg Barclays U.S. Aggregate Index
[2] US mutual funds are not available to investors outside the United States.
[3] In Europe, the strategy is distributed in Undertakings for Collective Investment in Transferable Securities (UCITS) vehicle

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