Neuberger Berman Emerging Markets Debt Hard Currency Fund review
Fund Objective
Neuberger Berman Emerging Markets Debt Hard Currency Fund aims to increase the value of your shares through a combination of growth and income from hard currency denominated investments in sovereign and corporate bonds (debt securities) issued in emerging market countries. Hard currency denominated investments refers to investments denominated in US Dollar, Euro, Sterling, Japanese Yen and Swiss Franc. Investments may be made in investment grade, high yield or unrated debt securities. Investment grade refers to sovereign and corporate issuers with a higher credit rating.
Investment Strategy
Neuberger Berman Emerging Markets Debt Hard Currency Fund will invest primarily in debt securities and money market instruments issued by public or private issuers in Emerging Market Countries which are denominated in Hard Currency (US Dollar, Euro, Sterling, Japanese Yen and Swiss Franc). Public issuers include corporate issuers that are, either directly or indirectly, 100% government-owned. With the exception of permitted investments in transferable securities and money market instruments that are unlisted, all securities invested in by the Portfolio will be listed, dealt or traded on Recognised Markets globally, without any particular focus on any one industrial sector or region.
Under normal market conditions, the investment manager and the sub-investment manager will invest at least two thirds of the Portfolio’s net asset value in Hard Currency debt securities and money market instruments issued by public or private issuers in Emerging Market Countries. The investment manager and sub-investment manager implement a systematic and disciplined framework for analyzing sovereign and corporate local currency and Hard Currency debt securities. The maximum proportion of the Portfolio’s net asset value that can be subject to total return swaps is 10%. The expected proportion of the Portfolio’s net asset value that will be subject to total return swaps is 1%.
Neuberger Berman Emerging Markets Debt Hard Currency Fund may use FDIs for investment purposes, efficient portfolio management purposes and/or hedging purposes. The Portfolio may or may be expected to have medium to high levels of volatility due to its investment policies or portfolio management techniques.
Who is Neuberger Berman Emerging Markets Debt Hard Currency Fund suitable for?
Neuberger Berman Emerging Markets Debt Hard Currency Fund is only suitable for investors who:
- seek to achieve an attractive level of risk-adjusted total return (income plus capital appreciation) from hard currency-denominated debt issued in Emerging Market Countries
- are prepared to accept the general risks associated with investing in Emerging Market Countries and the risks of bond markets over the medium to long term
- are prepared to accept medium to high levels of volatility due to the Portfolio’s investment policies or portfolio management techniques.
Dividend or Income payout frequency:
For additional assessments on product suitability, please obtain professional advice from a qualified Financial Adviser.
What are the key risks of Neuberger Berman Emerging Markets Debt Hard Currency Fund?
The value of Neuberger Berman Emerging Markets Debt Hard Currency Fund and its dividends and coupons (if any) may rise or fall. You may lose some or all of your investment depending on the performance of the underlying securities. Factors that may affect the performance of these securities include, without limitation, market risks, fluctuations in interest rates and foreign exchange rates, political instability, exchange controls, changes in taxation and foreign investment policies.
Some of the key risks associated with Neuberger Berman Emerging Markets Debt Hard Currency Fund are described below:
Market and Credit Risks
- You are exposed to Fixed Income Securities and Downgrade Risk
- You are exposed to Lower Rated Securities Risk
- You are exposed to Sovereign Debt Risk
- You are subject to Credit Risk
- You are exposed to Currency Risk
- You are exposed to Emerging Market Economies Risk and Emerging Market Debt Securities Risk
- You are exposed to Currency Hedging Risk
Liquidity Risks
- The Portfolio is not listed in Singapore and you can redeem only on Dealing Days
Product-Specific Risks
- You are exposed to Investment Risk
- You are exposed to Risks relating to the use of FDI
- You are exposed to Risks relating to dividend payment
Investment Fees and Charges
For a limited time (Until 31 Dec 2023), speak to a MAS licensed licensed financial adviser which has committed to offering our readers a flat 1% Subscription fee (Initial Sale Charge) for all Unit Trust Funds investment.
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Where can I get more details about Neuberger Berman Emerging Markets Debt Hard Currency Fund?
- Speak to a licensed licensed financial adviser
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