Neuberger Berman has added a new unconstrained bond fund to its mutual funds lineup, and has extended its presence in the alternative mutual fund market. While not classified on Neuberger Berman’s website alongside their alternative mutual funds, the fund has a global “go anywhere,” absolute return oriented mandate that allows the managers to implement their ideas through both long and short positions.
The new fund will utilize the firm’s global portfolio management team that resides in both Chicago and London, and includes Andy Johnson, Neuberger Berman’s Head of Global Investment Grade fixed income, Jon Jonsson, a London-based senior portfolio manager, and managing directors Thanos Bardas, David Brown, Ugo Lancioni, and Thomas Marthaler.
“U.S. investors are re-evaluating their fixed income exposures as a traditional benchmark-driven long-only approach comprised primarily of domestic investment-grade bonds may no longer fully meet their objective of stable income with low risk to principal,” said Brad Tank, Neuberger Berman’s chief investment officer for fixed income. “We believe Neuberger Berman is in a unique position to introduce an unconstrained bond strategy in a mutual fund structure for U.S. investors, as we have specialist sector teams covering the full breadth of the global fixed income universe and a proven process that the Fund’s managers will employ to take advantage of market mispricings and allocate risk across global rates, currencies and credit.”
The firm has four other alternative mutual funds (listed below) and has been quite successful in raising assets for their funds. Launched in December 2011, the Neuberger Berman Long Short Fund is the largest with more than $2 billion in assets and was awarded the 2013 “Best 40-Act Fund – Equity” by HFMWeek Magazine. The firm’s second largest fund is the Neuberger Berman Absolute Return Multi-Manager Fund at $745 million, and that fund was recently added as a fund option by the Hartford HealthCare defined contribution plans.
Key fund facts:
- Fund name: Neuberger Berman Unconstrained Bond Fund
- Inception: 2/13/14
- Investment Objective: The Fund seeks to maximize total return.
- Fund Tickers (share classes): NUBAX (A), NUBCX (C), NUBIX (I), and NRUBX (R)
- Investment management fee: 0.87% for A & C shares, 0.75% for I shares and 0.68% for R shares
- Manager structure: Single manager, global team
Neuberger Berman’s other alternative mutual fund offerings include: