Liquid Alternatives

Accessible Options to Overcome Today’s Market Challenges

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This is a marketing communication. 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.

Meeting Today’s Market Challenges

We have entered a new era, during which investors will have to contend with structurally higher inflation, deglobalization and higher volatility. Against this backdrop, investors have to manage expected returns which may be lower than actual historical returns, particularly across traditional asset classes. Additionally, conditions like these tend to make equity-bond returns more correlated, meaning it will be more difficult to achieve portfolio diversification benefit.

We think that alternative assets can rise to these dual challenges.

Neuberger Berman’S Liquid Alternative Capabilities

Our liquid alternative capabilities include solutions that are well-suited to a broad range of investor needs. In this short video, Douglas Kramer, Head of Institutional Equity and Multi-Asset introduces our Liquid Alternative capabilities and outlines the role each could play within a portfolio.

Our brochure also provides an overview of our offerings.

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Videos

Event-Driven Investing: Capturing Pure Alpha

Event-driven investing provides alpha opportunities by seeking to capitalize on mispricing due to corporate events such as mergers, acquisitions, spinoffs, and bankruptcies. This strategy with its risk-managed hedging construct seeks to extract pure alpha and provide attractive risk-adjusted absolute returns under different market conditions, including down-markets.

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Equity Index Putwriting: Capitalising on Volatility

Investors seeking protection from market falls are prepared to pay high premiums. Investors can capitalize on this by selling fully collateralized put options and consistently taking in these premiums. This strategy can provide a defensive equity return profile while offering an attractive income stream.

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US Long Short Equity – A Fundamental Approach

With uncertainty around tightening financial conditions, sustained inflation and economic growth expectations, we believe that market volatility will continue to persist. With stocks and bonds becoming increasingly correlated and volatile; and increasing disparity of returns among market cap, sector, and investment style, this environment offers, in our view an opportunity for active management on longs and shorts, in the pursuit of attractive risk-adjusted returns.

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Tactical Macro – Dynamic Multi-Asset Solution

As we exit the post-Global Financial Crisis era of easy money, the macro environment is shifting to one that is characterized by lower return potential for traditional assets, higher market volatility, and more frequent shifts in inter-asset correlations. This strategy seeks to achieve positive returns regardless of the market environment by identifying market pricing imbalances across a broad range of asset classes, markets and regions in a highly risk-managed framework.

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Participating in the Next Commodities Supercycle

While investors are increasingly appreciative of the diversifying and inflation hedging potential of commodities, the recent commodity weakness has kept many on the side-lines. However, we believe that long-term trends such as deglobalization, decarbonization and redistribution are fuelling a new commodity supercycle.

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Uncorrelated Strategies – Multiple Beta Blockers Under One Roof

Elevated equity-bond correlations and inflation have contributed to higher volatility and lower returns. As such, uncorrelated strategies have an increasingly important role to play as a portfolio diversifier and return enhancer. This strategy offers a fee-efficient structure to access the economics of a multi-strategy/manager portfolio with minimal correlation to traditional markets.

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Key Risks

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.

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.

Derivatives Risk: The Fund is permitted to use certain types of financial derivative instruments (including certain complex instruments). This may increase the Fund’s leverage significantly which may cause large variations in the value of your share. Investors should note that the Fund may achieve its investment objective by investing principally in Financial Derivative Instruments (FDI). Certain investment risks apply in relation to the use of FDI.

Interest Rate Risk: The risk of interest rate movements affecting the value of fixed-rate bonds.

Credit Risk: The risk that bond issuers may fail to meet their interest repayments, or repay debt, resulting in temporary or permanent losses to the Fund.

Counterparty Risk: The risk that a counterparty will not fulfil its payment obligation for a trade, contract or other transaction on the due date.

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.

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.

Model Risk: The investment strategy of a Fund using a quantitative investment approach is rules based and model-driven. Therefore, it would not necessarily result in a security being sold because that security’s issuer was in financial trouble or defaulted, or had its credit rating downgraded, unless such indicators are tracked by the investment strategy of that Portfolio. There is no guarantee that the investment strategy of such a Portfolio will meet the purpose for which it was designed.

For full information on the risks please refer to the fund prospectus and offering documents, including the KID or KIID, as applicable.

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