Skip to content
Select Your Location
View available investments and insights in your market
Americas
Europe and the Middle East
Asia Pacific

Ultra Short Term Euro Bond

The content you are trying to access is not available for the global audience. It is available in Latin America.
Institutional Strategy > Fixed Income > Ultra Short Term Euro Bond

Ultra Short Term Euro Bond

An actively managed portfolio of Euro short-term bonds, with opportunistic allocations to attractive Euro bond strategies.

  • The strategy seeks to outperform a Euro cash benchmark1 and produce positive returns in a negative rate environment
  • Conservatively managed with a targeted level of risk
  • Flexible interest rate positioning with limited duration risk -1/+2 years
  • A diversified portfolio of Euro short-term bonds with limited tactical allocations to other Euro fixed income strategies (under 20%)
  • Managed by a team of experts with an average of 18 years’ experience, leveraging the resources of Neuberger Berman Fixed Income platform with over 170 investment professionals

*Effective July 31st, 2019, the Neuberger Berman Euro Short Term Enhanced Cash was renamed to the Neuberger Berman Ultra Short Term Euro Bond.

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 portfolio may be unable to sell an investment readily at its fair market value. In extreme market conditions, this can affect the strategy’s ability to meet redemption requests upon demand.
Derivatives Risk: The portfolio is permitted to use certain types of financial derivative instruments (including certain complex instruments). This may increase the portfolio’s leverage significantly, which may cause large variations in the value of your share.
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 portfolio.
Interest Rate Risk: The risk of interest rate movements affecting the value of fixed-rate bonds.
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 portfolio are exposed to currency risk. Fluctuations in exchange rates may affect the return on investment. If the base currency of the portfolio is different from your local currency, then you should be aware that due to exchange rate fluctuations the performance shown may increase or decrease if converted into your local currency.

Overview

Investment Philosophy

Three ideas guide us as we build our portfolios:

  • Fundamental analysis of the macroeconomic environment to identify long-term trends
  • Relative value approach that aims to identify investment opportunities
  • Efficient risk approach relevant to the Eurozone’s specific characteristics

Investment Process

We believe in an approach that combines top-down and bottom-up analysis to build actively managed portfolios with a focus on fundamental research and an efficient risk framework.

     

TACTICAL APPROACH

FORECASTS

  • Macro-economic analysis
  • 3M interest rate and credit forecasts

STRATEGIC ALLOCATION

  • Interest rate and credit risk budget
  • Integrating extreme market scenarios
  • Portfolio P/E < broader market

SELECTION OF ISSUERS

  • Debate/discussion with the analysts and choice of issuers
  • Euro buy/sell issuer list
  • Euro Model portfolios

BUILDING OF CLIENT PORTFOLIO

  • Selecting securities
  • Incorporating investment guidelines
  • Tactical management

Management

Antonio Serpico
Senior Portfolio Manager
20 Years of industry experience
1 Year with Neuberger Berman