Neuberger Berman Expands ETF Offerings with Emerging Markets Debt Hard Currency ETF
Neuberger Berman, a well-established private investment manager, recently executed a successful transition of its existing Emerging Markets Debt Fund into an innovative exchange-traded fund (ETF). The newly branded
Neuberger Berman Emerging Markets Debt Hard Currency ETF, which began trading on the NYSE ARCA under the ticker symbol
NEMD, is aimed towards U.S. investors looking for diversified exposure in emerging market debt.
This conversion comes as part of Neuberger's strategic commitment to extend their investment management capabilities and insights in emerging markets. Prior to the conversion, the fund contained around
$102 million in assets, indicative of its established market presence and investor interest. Gorky Urquieta, the Managing Director and Global Co-Head of Emerging Markets Debt, expressed enthusiasm about this development, noting the firm's long-standing expertise in the area and its dedication to transparency through this active ETF structure.
ETF Investment Strategy
The Neuberger Berman Emerging Markets Debt Hard Currency ETF is designed specifically to target hard currency-denominated sovereign debt in developing nations. By focusing on debt instruments issued by emerging market governments and denominated in major global currencies such as the
U.S. dollar and the
euro, the ETF offers unique yield opportunities that history shows can outperform traditional investment vehicles. It may also include corporate debt from emerging market issuers, providing investors with additional diversification and yield potentials.
Key features include:
- - Multiple Potential Alpha Sources: Utilizing both bottom-up and top-down analysis, the fund benefits from insights generated by an experienced and well-resourced global investment team.
- - Hard Currency Focus: This approach enables investors to access emerging market debt while leveraging targeted derivatives, all while maintaining a moderate turnover in the portfolio.
- - Rigorous Research Framework: The ETF team employs proprietary research covering over 90 emerging markets and more than 500 corporate issuers, allowing for informed decision-making based on comprehensive data.
The Vision Ahead
Neuberger Berman recognizes the growing demand from clients for active ETF options that utilize robust investment strategies backed by a research-intensive process. Their existing lineup of actively managed ETFs encompasses various investment methodologies, including equities, liquid alternatives, and real estate. By introducing this new ETF, Neuberger aims not only to provide attractive yields but also to cater to the evolving needs of investors keen on capitalizing on emerging market opportunities.
Founded in 1939, Neuberger Berman has fundamentally anchored its philosophies on active management complimented by diligent research and engagement with their portfolio company’s strategies. Today, they steward assets totaling approximately
$538 billion across numerous investment channels, emphasizing their leadership within the financial services industry. They have consistently been recognized as one of the best employers in money management, underscoring their commitment to creating a supportive environment for their workforce.
In conclusion, as Neuberger Berman enhances its product offerings to include more transparent and efficient investment vehicles like the Emerging Markets Debt Hard Currency ETF, it positions itself as a leader in addressing the diverse needs of modern investors. As the ETF market continues to evolve, savvy investors should keep an eye on Neuberger's developments as they explore innovative solutions in the pursuit of yield and diversification.
For more information on the ETF and its investment methodology, visit
Neuberger Berman’s official website. If you are an investor considering adding this ETF to your portfolio, be sure to review the associated risks and consult your financial advisor before proceeding with any investment decisions.