Neuberger Berman Revamps Global High Yield Fund with UBS to Align with UN SDGs

Neuberger Berman, a private, independent, employee-owned investment manager, has reframed its existing global high yield fund in close partnership with UBS Global Wealth Management (GWM). The enhanced UCITS fund will invest in high yield bonds globally, with the primary aim of engaging systematically with issuers on objectives related to the United Nations Sustainable Development Goals (UN SDGs), seeking to generate competitive yield and total returns.

The fund name was changed from Neuberger Berman Global High Yield Bond Fund to Neuberger Berman Global High Yield SDG Engagement Fund and it will be available to UBS clients in Switzerland and other select international markets exclusively for 6 months, after which the fund will open to all eligible global investors (ex US).

The fund will engage with 100% of issuers on objectives aligned with contributions to the UN SDGs. It will deliver regular reporting on engagement progress by sharing case studies and key performance indicators relating to the issuers’ products, services, operations or processes to help track progress toward the goal of positive environmental and/or social outcomes. The fund will also incorporate proprietary ESG assessments using the NB ESG Quotient. The fund seeks to maximise current income whilst preserving capital by investing in securities in the global high yield fixed income market that seek to produce investment returns and support better alignment with the UN SDGs.

Kocinski, senior portfolio manager at Neuberger Berman, says: “We are intentionally seeking to maintain yield and total return characteristics of a traditional high yield product while also pursuing a robust sustainability objective through active engagement.”

Bruno Marxer, Head Global Investment Management at UBS Global Wealth Management, comments: "The collaborative effort behind this new launch speaks to our ambition to provide our clients with exclusive access to solutions from leading partners, in this case enabling them to position for current market trends while helping to drive positive social and environmental change."