NB Global Corporate Income Trust (“NB Global”) – Managed Investment Scheme

DJ Carmichael Pty Limited (“DJC”) has been invited to participate in the offer of units in NB Global, a managed investment scheme being undertaken by Equity Trustees Limited, the Responsible Entity of NB Global.
 
The Responsible Entity and the “Manager” of NB Global, Neuberger Berman Australia Pty Limited, are seeking to raise between $150 million to $500 million via the issue of between 75 million and 250 million units (“Units”) at an issue price of $2.00 per Unit (“Offer”). The minimum application is 2,500 Units with multiples of 500 Units thereafter.
 
Units will be issued pursuant to a Product Disclosure Statement lodged with the ASIC on 6 August 2018 (“PDS”). The PDS may be found at www.nb.com/NBI. Investors should read the PDS before deciding whether to invest.

Investment in the NB Global is open to all retail, Sophisticated and Professional Investors.

NB Global is a newly constituted managed investment scheme, which has been registered with ASIC. Following completion of the Offer, it is proposed that NB Global will be listed on the ASX as an investment entity.

NB Global will provide investors with an opportunity to receive monthly income by investing in the bonds of large, liquid companies globally.

The Manager has applied for NB Global to be admitted to the Official List for quotation of units on the ASX.
 

Investment Highlights

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

  • The Target Distribution is only a target and may not be achieved.

  • Actual distributions will be monitored against the Target Distribution.

  • The Target Distribution will be formally reviewed at least annually (as at the end of each financial year) and any reduction in Target Distribution will be notified by way of ASX announcement as required.

The investment strategy for NB Global is to invest in and actively manage a portfolio of high yield bonds issued by companies located globally across both developed (e.g. the U.S. and the U.K.) and emerging (e.g. Argentina and South Korea) markets, with a strong emphasis on capital preservation by focusing on higher quality within the Global High Yield Market, large and more liquid companies and by avoiding companies with deteriorating financials.

The Investment Team intends to invest in high yield bonds issued by companies (i.e. corporate bonds) located in both developed and emerging markets globally, with a focus on BB and B rated bonds.

Key benefits of investing in NB Global

  • Global: Exposure to global corporate bonds.

  • Income: The Manager aims to deliver a stable and consistent income stream, which is initially targeted to be 5.25% per annum (net of fees and expenses), paid monthly.

  • Security: Access to a large, experienced and stable investment team employing a disciplined and repeatable investment process with a strong emphasis on capital preservation by focusing on higher quality (e.g. BB and B rated) high yield corporate bonds and avoiding companies with deteriorating financials.

  • Diversification: Exposure to a portfolio of 250-350 bonds issued by large, liquid global companies and diversified across countries, industries and credit quality.

  • Lower volatility: Access to an asset class with a track record of lower volatility and attractive returns, and, consequently, the potential to enhance the risk/return profile of an investor’s investment portfolio.

  • Scale and Resources: Access to a large investment team currently comprising 56 investment professionals and located globally, supported by the resources of the broader Neuberger Berman research platform with over 200 investment professionals.

  • Experience: Access to the expertise of senior portfolio managers averaging 24 years’ industry experience and with a 20 years’ track record managing high yield corporate bonds.

  • Commitment: A “day 1” NAV per Unit of $2.00, being not less than the Subscription Price, because the Manager has committed to pay for all the upfront establishment costs of the Offer.

Further information on the Trust and Offer can be found in the PDS.
 
The key risk factors of the Trust are outlined in section 8 of the PDS.
 
An indicative timetable for the Offer is set out below:

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DJC will receive a fee of 1.25% from the Lead Manager(s) for amounts subscribed in the Offer. Of this amount, Advisers will receive 0.625%. For example, for an allocation of $10,000, DJC will receive $125 of which the Adviser will receive $62.50.

Please ensure you contact your Adviser as soon as possible, noting that the bookbuild may close early with no notice. We have used a closing deadline of COB Monday, 27 August 2018, however this is indicative only and subject to change.