Global investment manager, Neuberger Berman, has announced that its Global Corporate Income Trust (NBI) will become the largest global fixed income listed investment trust (LIT) on the Australian Securities Exchange (ASX) with a market capitalisation of around $1.25 billion.
This followed a successful completion of capital raise for NBI, which exceeded $340 million at the close of the offer on 21 February, which according to the company underscored Australian investors’ demand for global corporate bond market.
The raise in the fund, which invests in the corporate bonds of large and liquid global companies and targets a monthly distribution of 5.25% per annum, was driven by both existing and new investors.
“We are pleased to witness the strong support from both existing and new investors,” NB’s head of intermediary distribution, Matt Thompson, said.
“The significant growth in the number of new investors shows that Neuberger Berman’s fixed income capability has struck a strong chord with Australian investors since NBI’s listing in September 2018.”
Thompson also said that the interest in a fund was helped by the current low interest rate environment which forced investors to look for higher yields and alternative sources of income and to diversify across geographies and sectors.
Performance of NB Global Corporate Income Trust v the global bond sector since the start of the data to 25 February 2020