Lonsec upgrades global credit strategy

The US$4331 billion ($593 billion) global manager Neuberger Berman recently saw its diversified fixed income fund upgraded by Lonsec. Widely known for its $9052 million listed investment trust, the NB Global Corporate Income Trust (ASX:NBI), the group’s unlisted vehicle has seen strong demand from the advice industry. The Neuberger Berman Strategic Income Fund, which is […]

The US$433¹ billion ($593 billion) global manager Neuberger Berman recently saw its diversified fixed income fund upgraded by Lonsec. Widely known for its $905² million listed investment trust, the NB Global Corporate Income Trust (ASX:NBI), the group’s unlisted vehicle has seen strong demand from the advice industry.

The Neuberger Berman Strategic Income Fund, which is a diversified, multi-sector bond portfolio able to invest across a broad opportunity set from duration to credit risk in the pursuit of returns, has delivered a strong year for investors, up 7.15 per cent for the 12 months to 31 August 2021³.

Launched in 2019, the fund offers financial advisers exposure to the somewhat difficult-to-access corporate debt market in the US, and around the world. The strategy seeks to benefit from the fact that individual sectors or sub-asset classes within fixed income, just like sharemarkets, are better suited to different environments.

Similarly, gaining access to less-well-researched and more complex, but significantly large, areas of global fixed income markets like high-yield, mortgage-backed, municipal and other bonds, isn’t always possible for retail investors.

Such has been the recent success, despite the pandemic, that research house Lonsec has upgraded the fund to ‘Recommended’. At the same time, the fund has been made available on the Macquarie, BT Panorama, and Xplore Wealth wrap platforms. These join Hub 24 and Netwealth.

Commenting on the upgrade, head of intermediary distribution at Neuberger Berman Australia, Matthew Thompson, said, “in today’s low-yielding environment and uncertain markets, investors want an effective way to generate consistent income. Our fund’s agile and opportunistic approach is an attractive option to meet these demands.”

With many suggesting the threat of inflation and higher rates will heighten, the fund, which seeks to exploit mispriced sectors, is positioned to benefit. 

1. Source: Neuberger Berman, as of end June, 2021.
2. Source: Neuberger Berman, as of end August, 2021.
3. Source: Neuberger Berman, returns calculated net of fees.