Income Issue: NB Global Corporate Income Trust Entitlement Offer

30 Jan 2020

Gamma Advisory

This information is general in nature and is not to be construed as advice.

Gamma Wealth Group is offering existing NBI unitholders and new clients to take up an entitlement in a leading global bond trust – Neuberger Berman (NB) Global Corporate Income Trust. (ASX code: NBI). Under the non-renounceable entitlement offer, eligible unitholders are invited to apply for 3 new units at the offer price of $2.05 for every 4 existing units. New units may also be offered under a shortfall offer.

NB Global currently manages over US$355bn in assets.  Investing in corporate bonds has traditionally been available only to investors in minimal parcel sizes of $50,000 per corporate bond.  NB Global Corporate Income Trust will allow investors to obtain a diversified, global corporate bond exposure to quality companies with a minimum investment of $5,000.

Keys features of the investment:

  • Neuberger Berman founded in 1939.
  • Experienced management team investing across 250-350 large, liquid, well known global companies such as Hertz, Energizer Holdings, Netflix, Pizza Hut, Accor Hotels, Virgin Media and Iron Mountain.
  • Focused on the Investment Grade Corporate Bonds with average credit quality B+.
  • This investment aims to provide stable monthly cash returns with low capital volatility.
  • The bond portfolio will be hedged to Australian dollars (AUD).
  • Target return to be 5.25% per annum.  The income distribution will be paid monthly. Return since inception 8.43% pa (since 26th September 2018 – 31st December 2019).
  • Average duration of bond portfolio is 3.5 – 4 years.
  • Subscription Price – $2.05
  • Minimum investment – $5,000
  • NB Global Corporate Income Trust is a Listed Investment Trust (LIT) and its Net Asset Value (NAV) is currently $2.07
  • ASX Code: NBI
  • Expected Closing Date of Offer: 21st February 2020
  • Recommended by Bond Advisor, Zenith & Independent Investment Research

For more information, click on the link below to read the PDS.

https://gammawealthgroup.app.box.com/s/ywtn9007hn56hxmml395awwgf9be99px

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