Neuberger Berman launches global high-yield fund

Added 8th August 2016

Neuberger Berman is to access the US, Europe and emerging markets with a Dublin-domiciled Global High Yield Bond Fund, headed by Patrick Flynn.

Neuberger Berman launches global high-yield fund

Launched today with assets of $77m (£59m), the Ucits vehicle will target a yield of around 5.5%.

The asset manager’s $37.6bn high-yield franchise already incorporates European, US and short duration Ucits portfolios, as well as funds operating in emerging hard and local currency debt.

The new fund is billed as a “natural extension” of its capabilities in the asset class.

Flynn will run the fund in collaboration with US colleagues on his flagship $7.8bn High Yield Bond Fund, as well as local managers in Europe and Asia.

The portfolio is initially split 65% in the US, with 20% in Europe and 15% in emerging markets.

It has around 20% in commodities, though the focus is primarily on high-quality business, particularly those involved in ‘mid-stream’ operations, while there is a preference for so-called ‘fallen angels’ in metal and mining.

Flynn said: “The depth and breadth of the global high-yield universe has developed markedly in recent years, with investors attracted to its defensive characteristics and low correlation to other asset classes.

“In our view, global high-yield valuations are compensating investors for the default risk in the market. Excluding commodity sectors, credit quality across global high-yield markets remains solid, which should set the scene for gradual spread tightening.”

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address

About Author

Gary Shepherd

Editor

Portfolio Adviser

Gary joined Last Word Media in 2009, becoming editor of Portfolio Adviser a year later. Previously, he worked at Incisive Media with roles across its Professional Adviser, Investment Week, Bloomberg Money and Mortgage Solutions titles. Gary has been shortlisted for various awards, winning Headline Money Investment Writer of the Year in 2010.

Features

US equities: If you can’t beat them, join them

US equities: If you can’t beat them, join them...

European investors have been dismissing US equities as too expensive for a couple of years. But as the S&P 500 continues to outperform other equity markets, appetite for the asset class is again on the...

Directories

Ashburton International
Ashburton International

Ashburton Investments is a new generation investment...

Tweets

Events

Future Advisory Forum Hong Kong 2016
Future Advisory Forum Hong Kong 2016

Tuesday 4th October 2016

Hong Kong

Future Advisory Forum Singapore 2016
Future Advisory Forum Singapore 2016

Thursday 6th October 2016

Singapore

Offshore Bond Workshop Manchester 2016
Offshore Bond Workshop Manchester 2016

12th October 2016
The Midland, Manchester

Future Advisory Forum Cape Town 2016
Future Advisory Forum Cape Town 2016

Tuesday 18th October
The Vineyard, Cape Town

Investment Strategy

Sponsored Content

OTHER STORIES FROM LAST WORD...