The fund is the firm’s first global portfolio with broad investment latitude and an emphasis on risk management to be offered to mutual fund investors, and was designed to be a core fund for investors. According to a press release, the fund blends fundamental and quantitative investment analysis to determine asset allocation and security selection.  

The fund seeks to provide exposure to global equity, fixed income and currency markets through a variety of investment instruments, including long and short positions in individual securities, index instruments, exchange traded funds as well as derivatives. The fund employs a proprietary top-down asset allocation model to establish a “tactical tilt,” making allocation decisions among the various investment regions and asset classes. It also employs a proprietary bottom-up security selection model to add value by choosing global securities the Fund’s managers believe are most likely to perform well relative to other investment options.

“We’re delighted to offer investors the Neuberger Berman Global Allocation Fund in a mutual fund format,” said Joseph Amato, the firm’s president and CIO, in the announcement. “The fund is designed to provide shareholders with the ability to improve their risk-reward profile through this core fund, which offers a broad-based portfolio of global assets, and seeks to deliver returns that are not as highly correlated with major asset classes, such as equities and bonds.”

The Neuberger Berman Global Allocation Fund is managed by a team with decades of portfolio management and research experience in global allocation strategies, with current assets under management of $1.9 billion. The team includes Wai Lee, chief investment officer of Neuberger Berman’s Quantitative Investment Group; Bobby Pornrojnangkool, PhD, Alex Da Silva, and Ping Zhou, PhD – portfolio managers from the Quantitative Investment Group – Joseph Amato, the firm’s president and chief investment officer; and Brad Tank, chief investment officer for fixed income. The fund may also leverage the expertise of more than 130 of Neuberger Berman’s dedicated equity and fixed income research analysts.

“The fund’s investment process is dynamic, allowing the team to identify both short-term and long-term market inefficiencies and capitalize on these opportunities,’’ said Lee. “Our top-down, bottom-up methodology is designed to produce a core portfolio featuring lower volatility than global equities and a flexible process investing in liquid securities globally.”

-Sara Kelly