Neuberger Berman launches 5G Connectivity Fund as communication networks expand for increased demand

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Fiona Kehily, +44 (20) 3214 9087, Fiona.Kehily@nb.com

London, 4 May 2020 – Neuberger Berman, a private, independent, employee-owned investment manager, is launching a 5G Connectivity UCITS Fund. Neuberger Berman launched its first 5G fund in December 2017 in Asia, the first of its kind globally, and now manages more than $4.2 billion* in the strategy.

The thematic global equity portfolio will invest in key enablers and beneficiaries of 5G and future connectivity, including 5G network infrastructure, internet of things (IoT) devices and applications and services. The fund will focus on companies where more than 50% of future earnings growth is driven by 5G enablement or adoption and will comprise between 40-60 stocks. It will follow the global strategy’s disciplined approach in constructing a differentiated and compelling portfolio based on in-depth analysis, valuation discipline and risk management. The fund will also analyse environmental, social and governance (ESG) factors in its portfolio construction process and will not hold any names on Neuberger Berman’s ESG exclusion list (see exclusion policy here).

The fund will be co-managed by Neuberger Berman portfolio managers YT Boon in Hong Kong and Hari Ramanan in New York. The two lead managers, who run the existing 5G strategy, take a research-intensive, bottom-up approach. They are backed by a dedicated team of technology industry and investment veterans, as well as the wider global equity research team of more than 40 investment professionals.

YT Boon, co-portfolio manager across Neuberger Berman’s thematic portfolios, says: “5G will unleash a new wave of technological innovation across the world. It is estimated that 5G will enable $13.2 trillion of economic opportunities by 2035 and create over 22 million job opportunities. Active management will be key to identifying the winners and losers of this long-term secular theme as the market continues to evolve. In the initial phase of 5G deployment, we will focus on network infrastructure, whereas we envisage higher exposure to application and service providers in the latter stage of 5G development.”

Jose Cosio, head of intermediary sales for EMEA and Latin America at Neuberger Berman, adds: “Our team’s blend of technology and investment expertise means we are well positioned to provide clients with an insider’s perspective into this fast-growing area of the market. As more and more investors seek investment opportunities in the next generation of connectivity, we are the only 5G investor with more than a two-year track record in the space coupled with a well-established thematic platform.”

*As of 31 December 2019.

Notes to editors

YT Boon

Yan Taw (YT) Boon, Managing Director, joined the firm in 2013. Based out of Hong Kong, He is Director of Research (Asia) and a co-Portfolio manager for Neuberger Berman’s research thematic portfolios, including the Autonomous Vehicles thematic portfolio, Next Generation Connectivity portfolio, and the Next Generation Mobility portfolio. Prior to his appointment as Asia Director of Research, YT served as an equity research analyst covering the Asian technology & telecommunications sector. Previously, he spent 2.5 years as a sell-side research analyst at Credit Suisse (Hong Kong) covering the Asian technology sector. Prior to that, YT started his career in the technology sector where spent more than 9 years working as a microprocessor designer at various semiconductor companies, including ARM (UK), Cadence (UK), Broadcom (UK), and Huawei (HK, China). He graduated with a BEng in Electronic Engineering from the University of Southampton (UK) and a MSc in System Level Integration from the University of Edinburgh (UK).

Hari Ramanan

Hari Ramanan, Managing Director, joined the firm in 2019. Hari is a Portfolio Manager and CIO of Research Funds at Neuberger Berman and leads the investing activities of the firm’s research-centric core and thematic funds. Prior to joining Neuberger Berman, Hari was Managing Partner of Valarc Holdings, a long-biased hedge fund backed by endowments and foundations to invest in a concentrated portfolio of globally traded equities that it looked to own for multiple years. In addition, the firm opportunistically took short positions in individual companies globally. Before founding Valarc in 2014, he served as a Portfolio Manager and Head of International Equities at Eminence Capital, a $7 billion equity long-short investment firm investing in quality companies globally. He joined Eminence in 2007 with a mandate to spearhead the firm’s international investing efforts. Prior to Eminence, Hari was a Managing Director and Portfolio Manager at Basso Capital, a multi-strategy investment firm in Connecticut where he focused on European equity and distressed debt investments. Hari began his career at Lehman Brothers Private Equity Division in New York. He subsequently worked for Advent International, the global private equity firm, in London and focused on European buyouts. Hari earned his Bachelor of Arts, magna cum laude, in Mathematics and Economics from Knox College in 2000. Hari served on the Board of Trustees of Knox College and its Investment Committee from 2009 to 2019.

About Neuberger Berman

Neuberger Berman, founded in 1939, is a private, independent, employee-owned investment manager. The firm manages a range of strategies—including equity, fixed income, quantitative and multi-asset class, private equity, real estate and hedge funds—on behalf of institutions, advisors and individual investors globally. With offices in 23 countries, Neuberger Berman’s diverse team has 2,200 professionals. For six consecutive years, the company has been named first or second in Pensions & Investments Best Places to Work in Money Management survey (among those with 1,000 employees or more). The firm was awarded an A+ in every category in the latest 2019 PRI report for our approach to ESG integration across asset classes. The firm manages $330 billion in client assets as of March 31, 2020. For more information, please visit our website at www.nb.com.