Neuberger Berman is to launch a new fund that will invest in both hard and local currency emerging market bonds, Wealth Manager can reveal.
The Neuberger Berman Emerging Market Debt Blend fund will have a benchmark with a 50% weighting to the local currency JP Morgan GBI Emerging Markets Global Diversified index, a 25% weighting to the US dollar hedged JP Morgan EMBI Global Diversified index, and a 25% weighting to the JP Morgan CEMBI Diversified index, which is also US dollar hedged but tracks corporate rather than sovereign emerging market debt.
Neuberger Berman said it expected that in normal market conditions the fund would run at least a two-thirds allocation to bonds issued out of emerging markets, with a maximum of a third in money market instruments and debt securities issued by public or private organisations in OECD countries.
In May last year Neuberger Berman hired 22 people to boost its emerging-market debt desk, with 19 coming from ING Investment Management. The team is now headed by Rob Drijkoningen (pictured) and Gorky Urquieta.
The fund’s management fee will range from 0.8% to 1.8% depending on the share class.