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Global Opportunistic Fixed Income

A flexible strategy that seeks attractive risk-adjusted returns by investing across the entire global bond market with a focus on exploiting mispriced sectors.

  • Dynamic sector allocation - adaptive to changing market conditions
  • Multiple alpha sources - no persistent biases or tilts in the portfolio
  • Collaborative research driven process and robust risk management

Investment Team (left to right): Brad Tank, Ashok Bhatia, Jon Jonsson and Alex Gitnik (not pictured).

The Case for a Dynamic Approach to Asset Allocation

A global opportunistic investment approach can provide efficient, diversified and dynamic exposure to the broader fixed income spectrum.

Investment Opportunities Vary Over Time

No one sector consistently outperforms or underperforms, making a dynamic approach to asset allocation and interest rate exposure necessary in today’s environment of elevated uncertainty and shifting returns across fixed income sectors.

20122013201420152016
HY Credit
18.9%
HY Credit
16.2%
EM Sovereign
17.3%
DM Sovereign
8.4%
Senior Loans
10.1%
EM Local
13.9%
EM Sovereign
7.8%
EM Sovereign
8.5%
IG Credit
10.8%
HY Credit
7.1%
IG Credit
7.7%
EM Local
7.6%
Senior Loans
10.2%
Senior Loans
5.4%
HY Credit
2.5%
DM Sovereign
1.4%
IG Credit
6.1%
DM Sovereign
4.5%
IG Credit
0.0%
Senior Loans
1.5%
EM Sovereign
0.9%
DM Sovereign
3.8%
 
DM Sovereign
-0.2%
EM Local
-4.5%
IG Credit
-0.2%
EM Sovereign
-4.1%
Senior Loans
-0.8%
EM Local
-5.7%
HY Credit
-2.0%
EM Local
-12.0%

Annual Returns Data as at 31st December, 2016. Source: BofA ML Developed Market Sovereign Bond Index (WSAV), BofA ML Global High Yield Index (HW00), BofA ML Local Debt Markets Debt Index (LDMP), BofA ML Global Broad Market Corporate Index (G0BC), BofA ML EM External Sovereign Hard Currency (EMGB), S&P/LSTA Leveraged Loans (SPBDAL).

Investment Philosophy

The team believes:

  • The consensus market view often prices temporary factors into asset values as if they were permanent in nature, leading to market mispricings.
  • Price distortions can be exploited by investment managers with a disciplined valuation approach based on unique insights and convictions.
  • A relative value investment approach that seeks to incorporate multiple sources of alpha to avoid persistent biases to one sector or theme may generate incremental value over time.

About the Investment Process

The strategy focuses on determining a confidence level for each asset class in addition to expected returns. This process is combined with multiple layers of risk management at security, portfolio and firm levels.

1. Develop Insights

Investment Strategy Committee comprised of the firm's senior fixed income investors meets monthly to discuss insights across fixed income asset classes.

2. Value Asset Classes (State-Space Analysis)

Sector teams use State-Space Analysis to determine expected return and confidence levels for each asset class.

3. Budget Risk & Allocate Assets

PMs review asset class valuations and incorporate qualitative judgments to determine potential allocation levels.

4. Select Securities and Implement Portfolio

Attractively priced issues are identified. Portfolio is adjusted to take into account target allocation levels.

Experienced and Stable Team

The Senior Portfolio Managers of the Neuberger Berman Global Opportunistic Fixed Income Strategy have an average 22 years of industry experience and 16 with the firm. The team is supported by over 140 investment professionals with expertise across the fixed income universe. The team is based across three continents with offices in North America, Europe and Asia, ensuring that markets are covered 24 hours a day.

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Management Team

Brad Tank

CIO – Fixed Income

38 Years of experience

17 Years with firm

Biography

Ashok Bhatia, CFA

Portfolio Manager

26 Years of experience

2 Years with firm

Biography

Jon Jonsson

Portfolio Manager

24 Years of experience

6 Years with firm

Biography

Alex Gitnik

Portfolio Manager

22 Years of experience

2 Years with firm

Biography