Neuberger Berman Unveils China A-Share UCITS Fund

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

Neuberger Berman Unveils China A-Share UCITS Fund

London, 16 September 2020 — Neuberger Berman, a private, independent, employee-owned asset manager, has launched the Neuberger Berman China A-Share Equity Fund (Dublin UCITS) managed by Neuberger Berman’s Emerging Market Equities team, led by Conrad Saldanha who has over 26 years of industry experience. The fund is also advised by Neuberger Berman’s China onshore equities team based in Shanghai.

The investment strategy favours high-quality companies with proven management teams and consistent long-term performance, and businesses positioned for domestic secular growth well into the future, supported by government policies and broader industry trends. The fund’s approach is high-conviction driven by bottom-up fundamental research.

Benchmarked against the MSCI China A (Onshore), the fund will typically hold between 30-50 portfolio positions and target a tracking error of 4-8%. Working alongside Neuberger Berman’s global ESG team, the fund will also review the ESG scoring of its portfolio holdings on a regular basis.

Neuberger Berman Emerging Markets Equities team manages the portfolio with the support from analysts from Shanghai with an extensive local network. The team is also assisted by Neuberger Berman’s equity research teams based in Taiwan and Hong Kong which cover communications, consumer, financials, industrials & IT, as well as the firm’s broader emerging market equity teams.

Ning Meng, China Equity Strategy Leader at Neuberger Berman says, “Our focus on unearthing high quality domestic Chinese companies will ensure we are positioned for the long term. This strategy lends itself particularly well to China, as the A-share market is inherently volatile and often presents the opportunity to buy these companies at cheap valuations.

“We see growth potential in ‘new infrastructure’ and the real estate sector in particular. Amid the disruption caused by COVID-19 and trade tensions, new government-backed technology infrastructure projects including artificial intelligence, 5G, industrial IoT and electric vehicle charging stations are set to be some of the key drivers for long-term economic growth in China.”

Jose Cosio, Head of Intermediary - EMEA and Latin America, adds, “The China A-share market is now the second largest in the world in terms of market capitalisation and cash turnover. It has become increasingly popular amongst international clients who want to gain access to the breadth of well-managed domestic companies in the Chinese market.”

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 24 countries, Neuberger Berman’s diverse team has 2,300 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 2020 Principles for Responsible Investment (PRI) report for our approach to ESG integration across asset classes. The firm manages $357 billion in client assets as of June 30, 2020. For more information, please visit our website at www.nb.com.