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FairHorizon Green
G12-A

Neuberger Berman Emerging Market Debt - Hard Currency Fund

EM G5 currencies broad government bonds. Active strategy with concentrated portfolio.

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About the Fund

Data as of

Neuberger Berman is an independent and employee-owned US-based investment management firm founded in 1939. The firm manages over US$550bn of AUM primarily in actively managed funds diversified across equity, fixed income and alternative offerings.

The Neuberger Berman Emerging Market Debt - Hard Currency Fund is an actively managed bond strategy that aims to outperform its benchmark (JPM EMBI Global Diversified Index) by average 1-2% before fees over a market cycle. The fund invests primarily in emerging market sovereign and quasi-sovereign bonds denominated in G5 currencies with no credit rating and maturity constraints. Portfolio construction is done by combining a top-down asset allocation framework resulting from macroeconomic assessment, with bottom-up fundamental analysis on issuers covering both quantitative financial factors and qualitative credit worthiness. The fund has a concentrated portfolio of >300 holdings vs index of >1000 holdings.

Performance

Price Performance – Maximum Period

The FairHorizon Context

Investment-Time-Horizon in years

0 - 22 - 44 - 7 7 - 1010 - 1515+
Expected long-term return
2 - 4% p.a.
Expected volatility
3 - 5% p.a.

Building Block Returns

Neuberger Berman Emerging Market Debt - Hard Currency Fund

Ann. return (3-year):
14.52%
Ann. return (5-year):
4.06%
Ann. return (10-year):
5.01%
Ann. Standard Deviation (5-year):
10.92%

This fund provides an active approach to invest in the broad emerging market sovereign bonds.

Benchmark Returns

iShares J.P. Morgan USD EM Bond UCITS ETF

Ann. return (3-year):
9.22%
Ann. return (5-year):
1.99%
Ann. return (10-year):
3.33%
Ann. Standard Deviation (5-year):
10.06%
Link to the Funds FairSheet

FairHorizon Benchmark Returns

Dimensional Funds PLC - World Allocation 40/60 Fund

Ann. return (3-year):
9.82%
Ann. return (5-year):
4.98%
Ann. return (10-year):
—
Ann. Standard Deviation (5-year):
6.84%
Link to the Funds FairSheet

The Dimensional World Allocation 40/60 Fund is our FAIRHORIZON Green reference benchmark solution that has 40% global developed equities and 60% global investment grade short-to-medium maturity bonds for global moderate risk bonds-like returns and volatility.

SHARING OUR PASSION FOR INVESTMENTS FAIRSHEET™  Neuberger Berman Emerging Market Debt - Hard Currency Fund  Page 1/2

Why we prefer this fund

Relevance of strategy

This fund provides an active approach to invest in the broad emerging market sovereign bonds.

Manager expertise

The 3 co-managers (Rob Drijkoningen, Gorky Urquieta, Bart van der Made) have been working together on emerging market debt solutions since 1997, and moved together to Neuberger Berman in 2013 to launch this fund.

Performance

The fund has a proven track record to outperform the benchmark (JPM EMBI Global Diversified Index) on long term basis.

Historical maximum drawdown & recovery time

Max drawdown (since inception)
-32.54%
Recovery Period
775 Days

Diversification

Credit Rating

  • Aa3.49%
  • A2.92%
  • Baa23.70%
  • Ba18.62%
  • B11.22%
  • Caa10.25%
  • Others29.80%

Sectors

  • Government-Related81.85%
  • Corporate5.82%
  • Cash1.61%
  • Others10.72%

Geography

  • U.S.A.15.56%
  • Mexico5.18%
  • Colombia3.97%
  • Argentina3.57%
  • Egypt3.43%
  • Ivory Coast3.26%
  • Turkey3.25%
  • Sri Lanka2.92%
  • Chile2.64%
  • Azerbaijan2.64%
  • Romania2.56%
  • Others51.03%