Neuberger Berman has launched a new short-duration fixed-income fund investing primarily in investment-grade bonds, bolstering its $222bn fixed-income range.
The Neuberger Berman Short Duration Income fund will use a value approach and complement short-duration investment-grade bonds by tactically allocating to other close-to-maturity fixed-income assets where the managers see opportunities.
It will be run by Ashok Bhatia, David Brown, Michael Foster and Matthew McGinnis, aided by the firm’s 200-strong fixed-income team.
Bhatia co-manages four other portfolios, including the £6bn NB Strategic Income and £539m NB Global Flexible Credit Income funds, both of which are in the top-decile of their respective sectors over five years.
He said the new fund would “meet the growing demand from investors who want to minimise duration risk while preserving attractive yields”.
Brown also runs the Global Flexible Credit Income fund, as well as Neuberger Berman’s £2.7bn Corporate Hybrid Bond fund, which has been the best performer in the IA Sterling Corporate Bond sector over the past decade among 70 portfolios with a long enough track record.
José Cosío, head of global intermediary ex-US at Neuberger, added: “Investors are facing an increasing need for resilient, income-focused solutions designed to navigate turbulent investment markets. This launch underscores our commitment to deliver strategies designed to help clients achieve their income objectives.”