Investment Grade CLO Debt Fund

This is a marketing communication in respect of the Neuberger Berman Investment Grade CLO Debt Fund. Please refer to the fund prospectus and offering documents 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.

The Fund is a financial product that promotes environmental and social characteristics within the meaning of Article 8 of the SFDR. Neuberger Berman believes that Environmental, Social and Governance (“ESG”) factors, like any other factor, should be incorporated in a manner appropriate for the specific asset class, investment objective and style of each investment strategy. For information on sustainability-related aspects pursuant to Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability‐related disclosures in the financial services sector please visit www.nb.com/europe/literature. When making the decision to invest in the fund, investors should take into account all the characteristics or objectives of the fund as described in the legal documents.

This fund is classified as complex under MIFID II and therefore will not be suitable for all investors. Investors should familiarise themselves with the risks that are associated with the fund as disclosed within the fund prospectus. 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.

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.

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.
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.

 

For full information on the risks please refer to the fund prospectus.