Neuberger Berman has launched its first global high-yield fund, to be run by Patrick Flynn, fund manager of the firm’s $7.8bn High Yield Bond fund.
Flynn will be helped by managers within the firm’s $37.6bn high-yield franchise, including its US High Yield team, the group’s European High Yield Bond strategy team and its Emerging Market Debt fund managers.
The Dublin-domiciled Global High Yield Bond fund will initially target the US, Europe and emerging markets with an exposure of 65 per cent, 20 per cent and 15 per cent respectively.
Flynn says: “The depth and breadth of the global high-yield universe has developed markedly in recent years, with investors attracted to its defensive characteristics and low correlation to other asset classes. In our view, global high-yield valuations are compensating investors for the default risk in the market.
“Excluding commodity sectors, credit quality across global high-yield markets remains solid, which should set the scene for gradual spread tightening.”
Neuberger Berman head of intermediary for EMEA Tom Douie says: “At Neuberger Berman we have a deeply established high-yield franchise, built up over many years, as well as an extensive emerging market debt platform with over $9bn in assets under management.
“The launch of the Global High Yield Bond Fund, driven by demand from our clients, is a natural extension of our capabilities in this asset class. Global high yield offers an attractive income stream, which has increased in importance in recent times as investors face the reality of a yield constrained world.”