The firm said the fund offers investors ‘access to the growing global real estate securities market which has more than tripled in size since 1997.’ It will be a sub-fund of its Irish-domiciled UCITS umbrella.
Neuberger Berman said the ‘historically competitive’ total returns and low correlation to fixed income securities mean real estate securities can provide investors with real returns in the current low yield environment, as well as offering diversification.
The fund invests in a diversified portfolio of global real estate securities with the aim of outperforming the FTSE EPRA/NAREIT Developed Index. It is managed by the Neuberger Berman Global Real Estate Securities Group led by Steve Shigekawa.
Brian Jones will support Shigekawa in the US, Gillian Tiltman will work from Europe and Anton Kwang will cover the Asia Pacific region. The group manages approximately $2.7 bn.
The team will target companies with ‘well-established management teams, economies of scale and balance sheet strength.’ The portfolio will typically hold 50-70 securities, diversified by geographic region, countries and property sectors.
“This new fund is a natural extension of our existing US strategy and has been launched in response to increasing interest from clients for global strategies,” Shigekawa. “We have the right people in the right locations to build a focused and differentiated global real estate portfolio.”
