NB Global Corporate Income Trust (NBI) $2.05 as at 26/09/2018
The NB Global Corporate Income Trust (ticker NBI.ASX) commenced trading this morning and has seen some support in the secondary market. US based asset manager Neuberger Berman raised $413mil for the trust. Follows a currency hedged corporate bond strategy that aims to pay 5.25% p.a. paying distributions monthly. While this is a new product, its underlying portfolio and strategy have been in existence for over 20 years with a strong historical performance. The Neuberger Berman US High Yield strategy, which commenced in December 1997, has returned 8.93% p.a. on average. Just experienced 1 default, highlighting the long-term success of NB as a high yield asset manager.
Market Matters Take/Outlook
With huge diversification across the portfolio, they hold around 300 individual holdings with position sizes between 0.25% – 0.50% of the portfolio. Normally we like to hold assets directly, however simply put, we can’t get the level of diversification or access to these sort of investments outside a fund structure such as this one. We like NBI for an income play, and so too does the market with the trust currently trading 2.5% higher to $2.05 today, above their NAV at listing of $2