InvestmentsDec 5 2016

Neuberger Berman bolsters multi asset range

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Neuberger Berman bolsters multi asset range

Neuberger Berman is to build out its multi-asset offering with the launch of two funds, including a 'risk parity' approach.

The fund house is to launch a Multi-Asset Risk Premia and a Multi-Asset Class Income strategies as it seeks to tap investor demand for alternative sources of returns.

The risk premia fund will look for long and short positions across equities, fixed income, currencies and commodities, in a bid to offer managed volatility, while targeting 5 per cent returns.

Risk parity, commonly used in the institutional space, is gaining prominence in the retail market. The strategies tend to focus on balancing the allocation of risk within a fund - in a similar concept to some absolute return offerings.

The Neuberger Berman fund will combine value, momentum, carry and liquidity styles.

Meanwhile the income fund will seek to generate "attractive" levels of income using multiple, uncorrelated sources of yield in both traditional and alternative assets.

In fixed income the fund will look at global sovereigns and credit, emerging market debt, high yield and senior loans, while its equity allocation will include high-dividend global stocks and REITs.

The fund will also look to use absolute return strategies, risk premia, options and currency overlays.

No ongoing charges figures were provided for the new vehicles, and it will be managed by Erik Knutzen, the firm's chief investment officer, multi asset class.

Neuberger Berman said the funds would complement its Global Dynamic Asset Allocator fund, which launched in September last year.