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Neuberger Berman

NB Global Corporate Income Trust

Listed Income Trust

Equity Trustees Limited as the Responsible Entity has announced the launch of ASX listed NB Global Corporate Income Trust (NBI)(1) and has appointed Neuberger Berman (NB) as the Manager. The Offer is expected to raise up to $[500] million(2).

NB is a private, independent, employee-owned global asset management firm with offices in 20 countries, and with more than 580 investment professionals and over 2,000 employees in total, who manage in excess of $411 billion on behalf of institutions around the globe. The investments of the Trust will be managed by a large and experienced investment team focused on the analysis, investment in and management of global high-yield corporate bonds.

The initial target annualised distribution, which will be paid monthly by the Trust, is 5.25% per annum (net of fees and expenses) on the Subscription Price (“Target Distribution”).

The investment strategy for the Trust is to invest in and actively manage a portfolio of high-yield bonds issued by companies located globally across both developed (e.g. US & the UK) and emerging (e.g. Argentina & South Korea) markets, with a strong emphasis on capital preservation by focusing on large and more liquid companies and by avoiding companies with deteriorating financials.

An investment in the Trust provides access to an important and significant sector of the fixed interest asset class (Global Corporate Bonds). The Trust therefore provides asset class diversification and is complementary to other fixed income securities.

The Manager will hedge all currency exposures back to AUD and employ hedging techniques designed to minimise fluctuations in the value of the Trust’s investments by reducing the risk of adverse movements in currency exchange rates and, potentially, interest rates.

This investment may be suitable for investors looking for monthly income and diversification of their income portfolio beyond traditional cash and hybrid investments.

Key highlights of this offer

  • Ability to secure a Broker Firm allocation in the NB Global Corporate Income Trust.
  • A 'day 1' NAV per Unit of $2.00, being not less than the Subscription Price.
  • Monthly target(3) cash distributions of 5.25% p.a. (net of fees and expenses)(4)
  • Exposure to the high-yield bonds of global companies
  • Access to the expertise of specialist portfolio managers located around the world
  • Portfolio diversification, offering exposure to a portfolio of 250-350 bonds issued by large, liquid global companies and complimentary to other fixed interest investments
  • Emphasis on capital preservation by focusing on higher quality rated high yield corporate bonds(5)
  • ASX listed liquidity(6)

Issuer: Equity Trustees Limited (Responsible Entity)

Manager: Neuberger Berman

Transaction: Listed Investment Trust

Morgans Role: Joint Arranger and Lead Manager

Offer Size: $[500] million

Offer Opens: 20 August 2018

Morgans Offer Closes: 31 August 2018

1. Morgans will receive fees for its role.
2. The Offer size may be more or less than $[500] million.
3. The first income distribution is scheduled to be paid following the month ending 31 October 2018.
5. The target distribution rate is set at 5.25%.
6. The NAV will reflect the value of the loan portfolio assets and move accordingly.
7. Application will be made to list NB Global Corporate Income Trust on ASX.

More information

If you have any questions about the NB Global Corporate Income Trust Offer, please contact your Morgans adviser, call 134 226 or find your nearest office here.

Download Prospectus

NB Global Corporate Income Trust is being offered only in Australia and New Zealand and the PDS will only constitute an offer to a person receiving it in Australia and New Zealand. Not for distribution, directly or indirectly, in the United States or to, or for the account or benefit of, US Persons, except in accordance with an available exemption from the registration requirements of the US Securities Act. The distribution of the PDS (including an electronic copy) in jurisdictions outside Australia and New Zealand may be restricted by law.