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Neuberger Berman Launches Global High Yield Bond Fund

Amisha Mehta, Deputy Editor, 10 August 2016

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The US-based investment manager is offering European investors exposure to global high yield markets.

The firm has launched the Neuberger Berman Global High Yield Bond Fund, a Dublin-domiciled UCITS vehicle.

The fund will leverage the expertise behind Neuberger Berman's $37.6 billion high yield franchise, which spans US, European and emerging market high yield sectors.

Patrick Flynn will lead the new strategy, in collaboration with colleagues from the US high yield team and the managers behind the group’s European High Yield Bond strategy and its range of emerging market debt funds. Flynn is a portfolio manager on Neuberger Berman’s $7.8 billion High Yield Bond Fund, which has returned 9.36 per cent year-to-date, compared to a sector average return of 6.57 per cent, according to Trustnet data.

The fund is available to investors across the UK, Europe and Asia.

Global high yield markets have grown more than 250 per cent in the past decade, according to Neuberger Berman, with “significant” expansion coming from Europe and emerging markets. 

“The asset class has provided a strong risk-return profile over this period, delivering ‘equity-like’ returns with lower volatility. Global high yield also offers a significant yield pick-up against other fixed income assets, particularly government bonds and investment grade credit,” the firm said.

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