Neuberger Berman bolsters ESG offering with Global High Yield Sustainable Action fund
Neuberger Berman, a private, independent, employee-owned investment manager, is launching an actively managed, differentiated global high yield fund focusing on corporate credit securities that meet sustainable investment criteria.
The strategy will target best-in-class issuers through systematic evaluation of environmental, social and governance (ESG) factors and negative exclusion criteria, emphasising active engagement with issuers on ESG factors. Engagement objectives for each issuer are established and aligned with the United Nations Sustainable Development Goals, with progress for the portfolio reported to investors annually.
The fund will invest in securities across the global high yield fixed income universe, with an emphasis on income generation. The portfolio will be diversified by industry and issuer, comprising 90-150 issuers, with a quality focus on BB and B credit.
Chris Kocinski and Joseph Lind will run the fund, supported by a team of four portfolio managers, ESG and impact investing specialists and a global team of more than 70 investment professionals dedicated to global non-investment grade credit markets. Based out of the firm’s Chicago office, Kocinski and Lind have a combined 34 years of high yield credit investing experience and expertise.
Chris Kocinski and Joseph Lind, senior portfolio managers at Neuberger Berman, say: “This fund leverages the scale of our fixed income platform and the rigour of our proprietary ESG process to create a unique platform for engagement with issuers. This will allow us to source best-in-class issuers and quality opportunities that are positively contributing to the future sustainability of the planet.”
Dik van Lomwel, head of EMEA and Latin America at Neuberger Berman, says: “The demand for solutions that drive sustainable outcomes beyond investment performance is only gathering pace. Neuberger Berman has evolved its ESG approach across asset classes, including high yield, for a number of years, and this new strategy now offers investors access to a sustainable solution in a space where alternatives remain more limited.”