The new funds, the Multi-Asset Risk Premia Fund and the Multi-Asset Class Income Fund, will invest across equities, fixed income, currencies and commodities, with aim of delivering “positive absolute returns over a cycle.”
Ajay Jain, the co-lead manager of the new Premia fund and head of multi-asset class portfolio management at Neuberger Berman, said the fund will have long and short positions in “deep, liquid markets”.
“Systematic alternative risk premia-based strategies offer investors exposure to sources of return that can be strongly diversifying from factors that have historically been rewarded over the long-term,” Jain added. The fund will attempt to combine four styles, value, momentum, carry and liquidity, into a portfolio and aim to avoid being overly concentrated in any one asset class.
The Multi-Asset Class Income Fund will invest across global sovereigns and credit, EMD, high yield and senior loans as well as global equities, REITS and master limited partnerships, aiming to generate income of between 4% and 6%.
Both funds have been launched to complement Neuberger Berman’s Global Dynamic Asset Allocator Fund which was set up in September 2015 and focuses on macro growth opportunities.
The new funds promise a high degree of transparency for investors with Erik Knutzen, the manager of the new Class Income Fund, adding: “A combination of low interest rates, low inflation, muted economic growth and elevated valuations across many traditional asset markets is inspiring investors to look for alternative sources of robust returns and diversification to meet their goals.”
The funds will launch across the UK, Europe and Asia in the coming weeks subject to regulatory approval.
