NB Global Corporate Income Trust

23 Aug 2018

Gamma Advisory

Gamma Wealth Group is offering clients the opportunity to invest in a unique asset class and enabling investors to access monthly income from a leading global bond trust – Neuberger Berman (NB) Global Corporate Income Trust.

NB Global currently manages over $411bn (AUD) 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, Jeep, Netflix, Pizza Hut, Accor Hotels, Virgin Media and Iron Mountain.
  • Focused on the Investment Grade Corporate Bonds.
  • 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.
  • Average duration of bond portfolio is 4 years.
  • Issue Size – up to $500m
  • Subscription Price – $2.00
  • Minimum investment – $5,000
  • NB Global Corporate Income Trust will be a Listed Investment Trust (LIT) and will be offered at its Net Asset Value (NAV) of $2.00 at listing
  • Expected ASX Code: NBI
  • Expected Closing Date of Offer: 31st August 2018
  • Recommended by Bond Advisor (see report)

Australian retail investors have previously had limited fixed income exposure.  This investment may be suitable for clients requiring income, low volatility and looking for alternatives outside their term deposits and cash.  An exposure to this investment may be part of a diversified investment portfolio.

For more information, click on the link below to read the Bond Adviser research report.



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