XXXXX | CLO Income Fund
This is a marketing communication in respect of the Neuberger CLO Income Fund. Please refer to the fund prospectus and offering documents, including the Key Information Document (“KID”) or Key Investor Information Document (“KIID”) as applicable, before making any final investment decisions. Investors should note that by making an investment they will own shares in the fund, and not the underlying assets.
This fund can accept subscriptions and redemptions on a fortnightly basis, and does not offer daily dealing. Investors should familiarize themselves with the dealing cycle and terms associated with subscriptions and redemptions as disclosed within the prospectus. A calendar for the dealing cycle of the fund can be downloaded at https://www.nb.com/handlers/documents.ashx?id=4bf00e59-6e96-4922-821b-4bc2363d43cb&name=nbif_clo_dealing.pdf.
The dealing deadline for the fund is six business days in advance of the dealing date, therefore investors should familiarise themselves with the risks associated with market movements in the intervening period between dealing cut-off and dealing. The fund may invest in instruments that have long settlement periods, such as primary issue Collateralised Loan Obligation (CLO) securities. The fund’s investments in CLOs will be frequently subordinate in right of payment to other securities sold by the applicable CLO and may not be readily marketable. Depending upon the payment and default rates on the collateral of the CLO, the fund may incur substantial losses on its investments. Accordingly, the mark-to-market value of CLOs may be volatile and the value of the Interests could likewise be volatile.
This Fund meets the requirements of Article 8 of the SFDR, further information is available in the Fund's documents section below.
Why Invest
CLO Debt Can Offer Economic and Fundamental Advantages
One of the Largest and Longstanding CLO Platforms
Team Depth and Experience
Fund Facts
Key Risks
Risks of Investing in the Neuberger Berman CLO Income Fund
The following list of risk factors is a summary only and is qualified in its entirety by the more detailed description of the risk factors described in the ‘investment risk’ section of the prospectus.
Market Risk: The risk of a change in the value of a position as a result of underlying market factors, including among other things, the overall performance of companies and the market perception of the global economy.
Volatility in Market: In recent years, securities issued in securitization transactions have experienced significant fluctuations in market value and accordingly high price volatility relative to historical experience. There is no assurance that such volatility will not continue or (to the extent it has eased) return.
Liquidity Risk: The risk that the fund may be unable to sell an investment readily at its fair market value. In extreme market conditions this can affect the fund’s ability to meet redemption requests upon demand. CLO securities are generally illiquid and dealer marks and valuations provided may not represent prices where assets can actually be purchased or sold in the market from time to time. Accordingly, the mark-to-market value of CLOs maybe volatile and the value of the relevant interests could likewise be volatile.
Credit Risk: The risk that debt instrument issuers may fail to meet their interest repayments, or repay debt, resulting in temporary or permanent losses to the fund.
Interest Rate Risk: The risk of interest rate movements affecting the value of fixed-rate bonds.
Operational Risk: The risk of direct or indirect loss resulting from inadequate or failed processes, people and systems including those relating to the safekeeping of assets or from external events.
Counterparty Risk: The risk that a counterparty will not fulfil its payment obligation for a trade, contract or other transaction, on the due date.
Currency Risk: Investors who subscribe in a currency other than the base currency of the fund are exposed to currency risk. Fluctuations in exchange rates may affect the return on investment.
Risk Retention: Beginning 1 January 2019, the fund will become subject to certain risk retention and due diligence requirements. Amongst other things, these requirements will restrict the fund from investing in a CLO unless: (i) the originator, sponsor or original lender in respect of the relevant CLO has explicitly disclosed that it will retain, on an ongoing basis, a net economic interest of not less than 5% in respect of certain specified credit risk tranches or securitised exposures; and (ii) the fund is able to demonstrate that it has undertaken certain due diligence in respect of various matters. The fund may be required to dispose of any CLOs that are non-compliant. Under such circumstances, the fund could sustain losses.
Performance & Exposures
Past performance does not predict future returns.
Fund performance is representative of the share class specified in the Fund Facts section and has been calculated to account for the deduction of fees. Fund performance does not take account of any commission or costs incurred by investors when subscribing for or redeeming shares. Investors who subscribe in a currency other than the base currency of the Fund should note that returns may increase or decrease as a result of currency fluctuations. The fees and charges paid by the Fund will reduce the return on your investment. Where a benchmark is shown, the benchmark shown is provided in the base currency of the fund and therefore may not be a fair representative comparison to the hedged share classes denominated in other currencies. The difference in the currency exposure and currency fluctuations in an unhedged benchmark may cause an unintended differential in any performance or risk comparison. The Fund is actively managed, which means that the investments are selected at the discretion of the investment manager. The Fund is not constrained by its benchmark, which is used for comparison purposes only.
Returns & Distributions
Stewardship & Sustainability
The ongoing charge figure (incl. management fee) is based on the annual expenses for the period ending 31 December 2025.
The fund’s benchmark name shown here may be abbreviated. Please refer to the supplement for the full benchmark name.