Neuberger Berman Introduces New ETF Targeting Emerging Markets
Neuberger Berman, a leading independent investment manager, has unveiled a new investment vehicle designed to enhance access to emerging markets. The firm has recently transitioned the Neuberger Berman Emerging Markets Debt Fund into an actively managed exchange-traded fund (ETF) known as the Neuberger Berman Emerging Markets Debt Hard Currency ETF.
Key Features of the Emerging Markets Debt Hard Currency ETF
This new ETF, which trades on the NYSE ARCA under the ticker symbol "NEMD", is strategically positioned to cater to U.S. investors looking for opportunities within hard currency-denominated sovereign debt from emerging markets. With approximately $102 million in assets, the ETF aims to capitalize on the yield potential and diversification benefits of investing in emerging markets.
Expert Investment Management
In a statement, Gorky Urquieta, Managing Director and Global Co-Head of Emerging Markets Debt, expressed excitement about leveraging the firm's extensive experience in this space. He stated, "We are delighted to bring our longstanding expertise and track record of investing in Emerging Markets Debt to an active ETF vehicle catering to U.S. investors." This emphasizes their commitment to maximizing yield while managing risks associated with emerging markets.
Investment Focus and Strategy
The ETF primarily invests in debt securities issued by governments in emerging markets and are denominated in major global currencies like the U.S. dollar and euro. This foundation allows the fund to take advantage of attractive investment opportunities while managing exposure to market volatility.
Multiple Alpha Sources
Neuberger Berman's new ETF approach integrates both bottom-up and top-down investment strategies that are executed by a seasoned and well-resourced global investment team. This structure is aimed at identifying multiple potential alpha sources, ensuring that investment decisions are backed by thorough research and analysis.
Robust Research and Risk Management
The investment firm has developed a comprehensive research process, covering over 90 emerging market countries and more than 500 corporate issuers. This depth of analysis fosters informed investment decisions, amplifying the ETF's capacity to meet its objectives.
Active Management Philosophy
Neuberger Berman’s commitment to active management is evident in this new ETF, which draws upon the firm’s rigorous, research-based approach to investment management. The company's team combines extensive market expertise and innovative data science capabilities to craft effective investment solutions that meet the needs of its clients.
Why Choose the Neuberger Berman Emerging Markets ETF?
Investors seeking exposure to emerging markets may find the Neuberger Berman Emerging Markets Debt Hard Currency ETF an appealing option. Unlike traditional mutual funds, ETF shares are traded at market prices, allowing for more flexibility and potential cost efficiencies in the investment process.
Understanding Investment Risks
However, potential investors should carefully review the unique risks associated with this fund, particularly those related to market conditions, credit quality, and currency fluctuations. This due diligence is essential before making an investment decision.
About Neuberger Berman
Founded in 1939, Neuberger Berman is an employee-owned investment management firm renowned for its client-focused approach and active management philosophy. With over 2,800 employees across 26 countries, the firm manages an impressive $538 billion in assets across various investment strategies, including equities, fixed income, and real estate.
Media Contacts
For more information, individuals can reach out to the media contacts: Henry Detering at henry.detering@nb.com and Soogyung Jordan at soogyung.jordan@nb.com.
Frequently Asked Questions
What is the Neuberger Berman Emerging Markets Debt Hard Currency ETF?
It is an actively managed ETF designed to invest in hard currency-denominated sovereign debt from emerging markets.
What assets does the ETF manage?
The ETF has approximately $102 million in assets post-conversion from the previous fund.
When did the ETF begin trading?
The ETF started trading on the NYSE ARCA under the ticker symbol "NEMD".
What are the investment objectives of the ETF?
The ETF aims to provide competitive yields and outperformance benchmarks within the emerging markets hard currency space.
How does Neuberger Berman approach active management?
The firm employs a research-based strategy combining deep market expertise and innovative data science to guide their investments.
