Launched today, the Neuberger Berman Short Duration High Yield Bond Fund will be managed by the team that runs the firm’s High Yield Bond Fund, headed by Ann Benjamin. This team includes fellow lead portfolio managers Russ Covode and Tom O’Reilly and they will use the same investment process across both funds.
The High Yield fund was launched in May 2006 and currently has $4.2bn (£2.7bn) in assets under management, largely in BB-rated bonds (56%).
Benjamin runs this fund’s duration along similar lines to its benchmark, the BofAML US HY Master II, primarily investing in bonds with a three-to-five or five-to-seven year duration. By contrast, the new proposition will be invested in short duration bonds of two years compared to 4.2 years for the broader index.
At outset, the firm has injected a small amount of seed capital and has an offer period until 19 January that a spokesperson confirmed “has already attracted a healthy pipeline of investor interest”.
