NEW YORK, Oct. 1, 2012 /PRNewswire/ -- Neuberger Berman Group LLC, one of the world's leading employee-owned money managers, has introduced the Neuberger Berman Short Duration High Income Fund (tickers: NHSAX, NHSCX, NHSIX), a portfolio that seeks to provide investors with enhanced income by investing in a diversified portfolio primarily of short maturity non-investment grade debt and floating rate senior secured loans.
The Neuberger Berman Short Duration High Income Fund ("the Fund") employs a disciplined investment process based on fundamental in-house research and seeks high current income with a focus on capital preservation. The Fund invests in shorter maturity and lower duration bonds than the traditional high yield universe.
The Fund's managers, Ann Benjamin, Tom O'Reilly and Russ Covode, average over 25 years of experience each in managing high yield assets. The portfolio managers, supported by a team of over 20 research analysts and traders, employ a disciplined strategy that seeks to provide the opportunity for consistent returns over evolving market conditions.
In total, the team manages over $15 billion in high yield strategies for institutions and individuals worldwide, including a Dublin-domiciled UCITS short duration high yield fund for non-U.S. investors and short duration high yield separate accounts. Ms. Benjamin and Messrs. O'Reilly and Covode also manage the $3.1 billion U.S.-registered Neuberger Berman High Income Bond Fund, which invests broadly in high yield securities.
(For additional ranking information for all share classes, please visit www.nb.com/MutualFundPerformance.aspx.)
"The Neuberger Berman Short Duration High Income Fund seeks to provide investors with a higher-yielding alternative to more conservative short-term investments,'' said Ann Benjamin. "We continue to have a positive outlook for high yield securities for the next 12 months, based on current fundamentals and spread levels.''
"We're delighted to offer the Neuberger Berman Short Duration High Income Fund, providing U.S. investors with what we believe is a more defensive option than our traditional high yield capabilities,'' said Brad Tank, Chief Investment Officer and Global Head of Fixed Income at Neuberger Berman. "The intensive focus on research, risk management, and on seeking consistent and superior long-term performance are hallmarks of our high yield team, and reflect our firm's enduring and distinctive culture.''
Both funds invest significantly in high yield securities. Non-investment grade debt is commonly called "junk bonds." The high-yield market can be more volatile than investment grade bond markets, especially in the short term. There are no guarantees that the fund will achieve its goal.
About Neuberger Berman
Neuberger Berman is a private, independent, employee-controlled investment manager. It partners with institutions, advisors and individuals throughout the world to customize solutions that address their needs for income, growth and capital preservation. With more than 1,700 professionals focused exclusively on asset management, it offers an investment culture of independent thinking.
Founded in 1939, the company provides solutions across equities, fixed income, hedge funds and private equity, and had $194 billion in assets under management as of June 30, 2012. For more information, please visit our website at www.nb.com.
An investor should consider Neuberger Berman Short Duration High Income Fund's and Neuberger Berman High Income Bond Fund's investment objectives, risks, fees and expenses carefully before investing. This and other important information can be found in each Fund's prospectus and summary prospectus, which may be obtained by calling 800.877.9700 or by e-mailing your request to firstname.lastname@example.org. Please read the prospectus and summary prospectus carefully before you invest or send money.
Past performance is no guarantee of future results.
Risks applicable to both Neuberger Berman Short Duration High Income Fund's and Neuberger Berman High Income Bond Fund's
Lower rated debt securities risk. Lower-rated debt securities (commonly known as "junk bonds") involve greater risks than investment grade debt securities. Lower-rated debt securities may fluctuate more widely in price and yield than investment grade debt securities and may fall in price during times when the economy is weak or is expected to become weak. Lower rated debt securities carry a greater risk that the issuer of such securities will default in the timely payment of principal and interest. Issuers of securities that are in default may fail to resume principal or interest payments, in which case the Fund may lose its entire investment.
Interest Rate Risk. The Fund's yield and share price will fluctuate in response to changes in interest rates. Generally, the value of investments with interest rate risk, such as fixed income securities, will move inversely to movements in interest rates. In general, the longer the maturity or duration of a fixed income security, the greater the effect a change in interest rates could have on the security's price. Thus, the Fund's sensitivity to interest rate risk will increase with any increase in the Fund's overall duration. Interest rates have been unusually low in recent years. Floating rate securities (including loans) can be less sensitive to interest rate changes.
Loan interest risks. Loans generally are subject to restrictions on transfer, and the Fund may be unable to sell loans at a time when it may otherwise be desirable to do so or may be able to sell them only at prices that are less than their fair market value. The Fund may find it difficult to establish a fair value for loans held by it. There is a risk that the value of the collateral securing a loan may decline after the Fund invests and that the collateral may not be sufficient to cover the amount owed to the Fund. In the event the borrower defaults, the Fund's access to the collateral may be limited or delayed by bankruptcy or other insolvency laws. In a rising interest rate environment, the value of an income fund is likely to fall.
Credit risk. A downgrade or default affecting any of the Fund's securities could affect a Fund's performance.
Additional risks Securities in the funds are subject to market volatility, and can decline significantly in response to adverse political, regulatory or other economic developments.
The High Yield Short Duration Fund may engage in frequent and active trading and may have a high portfolio turnover rate, which may increase the funds transaction costs, may adversely affect the Fund's performance or may generate a greater amount of capital gain distributions to shareholders than if the Fund had a lower portfolio turnover rate.
Investor Class is closed to new investors, see prospectus for details on policies for current investors. Institutional Class is available with a $1 million minimum.
The "Neuberger Berman" name and logo are registered service marks of Neuberger Berman Group LLC. "Neuberger Berman Management LLC" and the individual Fund names in this piece are either service marks or registered service marks of Neuberger Berman Management LLC.
© 2012 Neuberger Berman Management LLC, distributor. All rights reserved.
Alexander Samuelson, Neuberger Berman, 212.476.5392, Alexander.Samuelson@nb.com
SOURCE Neuberger Berman Group LLC