NB Global Corporate Income Trust
Neuberger Berman Australia has launched a global high-yield bond listed investment company, called the NB Global Corporate Income Trust (ASX:NBI).
The LIC invests in a portfolio of high yield bonds issued by companies located globally across both developed and emerging markets. It emphasises capital preservation by focusing on large and more liquid companies - it invests in between 250 and 350 bonds - and by avoiding companies with deteriorating financials.
The LIC targets income of 5.25 per cent per annum (net of fees and expenses), paid monthly, and has a management fee of 0.85 per cent.
"We are launching the trust because we believe that there are many investors in Australia, particularly those approaching or already in the retirement phase of their lives, who are holding excess, low-yielding cash positions and potentially impairing their longer term retirement objectives," director Jason Henchman said in the LIC's product disclosure statement.
"Consequently, there appears to be a need for investment products, which produce stable and consistent distributions of income in excess of bank deposits and which provide diversification beyond Australian listed equities and Australian fixed income products."
The LIC listed on the ASX on 26 September 2018.