XXXXX | Short Duration Income Fund
Important Notes
- The Fund seeks to generate the highest available current income consistent with ensuring liquidity and low risk to principal.
- The Fund will invest primarily in debt securities issued by US corporations or by the US government and its agencies, listed, dealt or traded on recognised markets as defined in the Prospectus. Such securities will primarily be rated investment grade (i.e. Baa3, BBB- or above), but may also be below investment grade or non-rated by recognised rating agencies.
- Under normal market conditions, the Fund seeks to maintain at least 80% of its NAV with a credit quality rating of investment grade. To enhance yield and add diversification, the Fund may invest up to 20% of its NAV in securities that are below investment grade or unrated. In addition, the Fund is subject to fixed income securities and downgrade risk, country concentration risk, sovereign debt risk, credit rating risk, Risks associated with collateralised and/or securitised products, currency risk, currency hedging risk and Renminbi currency risk.
- The Fund may use financial derivative instruments ('FDIs') for hedging, efficient portfolio management and/or investment purposes and therefore may be subject to higher counterparty/credit, liquidity, valuation, volatility, valuation and over-the-counter transaction risks. The Fund may have a net derivative exposure of up to 50% of its NAV and may result in a significant loss of the Fund due to higher leverage risk.
- In respect of the distributing shares, the Fund aims to pay dividend on a monthly basis. However, the distribution rate is not guaranteed. The Fund may at its discretion pay dividends out of the capital of the Fund. Dividends paid out of capital amount to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Such dividends may result in an immediate decrease in the net asset value of the relevant shares.
- Investors should not solely rely on this document to make any investment decision. Please refer to the Prospectus and Key Fact Statement for details including the risk factors before making any investment decision.
Why Invest
Seeks consistent and efficient income utilising a disciplined investment process and experienced team to ensure liquidity and seeking to preserve principle. Under normal market conditions, the average interest rate duration is anticipated to be within a range of 1 to 3 years, by investing primarily in US investment grade bonds. There can be no guarantee that the Fund will ultimately achieve its investment objective and capital invested is at risk.
Seeks durable and sustainable yields
We seek to extract market mispricings through an active relative value approach focused on delivering attractive positive yield without exposing our portfolios to persistent biases
Leverage Neuberger's globally integrated Fixed Income Platform
Our multi sector portfolios construct portfolios utilizing our proprietary top down Asset Allocation Framework and sector specialist bottom up research to add value through the market cycle
Team Depth and Experience
Senior portfolio managers have an average over 28 years experience in fixed income markets. In addition, they are supported by 80+ dedicated sector specific research analysts
Fund Facts
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What It Is and Why This Fund
Watch Senior Portfolio Manager Nish Popat explain how the Short Duration Emerging Market Debt Fund is designed to combine sovereign and corporate bonds with lower volatility than the broader EM hard currency market, while maintaining an average investment grade rating.