Where to find defensive investment returns as macro volatility persists

Bonds are back on the menu for many investors. There’s a strengthening view that central banks’ interest rate hiking cycles are nearing the end, with just two more increases expected from the US Federal Reserve after its recent pause.

Nevertheless, we expect the extraordinary bond market volatility of the past year or more to persist. In this environment, investors should favour a broad-based approach to fixed income, with the flexibility to alter duration, sector exposures, and countries represented in their portfolio. 

With a 25-year track record in the space, Neuberger Berman's team of fixed-income traders and portfolio managers spans the world’s major regions. Our expertise stretches across the entire credit sector, including investment-grade and non-investment-grade bonds, developed and emerging markets, as well as corporate and government bonds.

These attributes are encapsulated in the Neuberger Berman Strategic Income Fund. We think of this fund as a foundational multi-sector fixed-income fund, where we’re looking to maximise returns to deliver attractive levels of consistent income, and to do so all within the boundaries of an investment-grade risk profile.

Most importantly, we have the leeway to be more defensive or more aggressive in our interest rate posture, depending on our assessment of the macro environment and the opportunities and attractiveness of taking duration in the portfolio.

In this episode of Fund In Focus, I explain the Neuberger Berman multi-sector credit team’s investment approach and discuss how we are currently positioned across duration and the various fixed-income asset types.

Managed Fund

Neuberger Berman Strategic Income Fund

Global Fixed Income

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Video highlights

1:45 - A foundational multi-sector fixed-income fund
3:10 - The role of this fund in a portfolio
4:15 - The best-in-class building blocks
5:30 - Risk versus return since the fund launched
6:50 - The benefits of a flexible investment mandate
7:45 - Tactical shifts within the portfolio
8:35 - Where Australian investors can access the Neuberger German Strategic Income Fund.

Exploiting mispriced sectors

Investing in the Neuberger Berman Strategic Income Fund provides access to a diversified, multi-sector fixed income strategy that seeks high income and an attractive total return from flexible sector and intra-sector asset allocation across global fixed income markets.

Managed Fund

Neuberger Berman Strategic Income Fund

Global Fixed Income

View