Neuberger Berman Strategic Income Fund Institutional Class (NSTLX)

Overview

The described fund is a comprehensive investment vehicle that primarily focuses on a diversified portfolio of debt securities. Its investment strategy is designed to cater to a range of securities, thereby offering a broad spectrum of investment opportunities to its clients. The fund aims to maximize returns by diversifying its investments across various types of debt instruments, including government and corporate bonds, municipal securities, and more. This approach helps in mitigating risks associated with market fluctuations and economic downturns, making it an attractive option for investors looking for stable income and growth potential.

Products and Services

• Government Securities

  These include securities issued or guaranteed by the U.S. government, its agencies, or instrumentalities. This category is known for its high level of security and reliability, making it an essential component of the fund's investment portfolio for risk-averse investors.

• Inflation-linked Debt Securities

  Inflation-linked debt securities are designed to help protect investors against the eroding effects of inflation on investment returns. By adjusting the principal value in accordance with inflation rates, these securities provide a hedge against inflation, ensuring that the purchasing power of the investors' capital is preserved.

• Municipal Securities

  Investments in municipal securities consist of bonds issued by local and state governments. These securities often offer tax-exempt interest, making them an attractive option for investors looking to minimize their tax liabilities while earning steady income.

• Foreign Securities, including Emerging Markets

  The fund diversifies its portfolio by investing in foreign securities, including those from emerging markets. This allows for the exploration of growth opportunities in various geopolitical regions. Such investments, however, come with a higher risk due to potential political instability and currency fluctuations.

• Corporate Bonds

  Corporate bonds are debt securities issued by companies. The fund invests in corporate bonds to gain exposure to the corporate sector's potential for high returns. These investments carry a higher risk compared to government securities but offer higher yields in return.

• Commercial Paper

  Commercial paper refers to unsecured, short-term debt instruments issued by corporations. This form of investment is typically used for the financing of immediate operational needs such as inventory and receivables. It offers an option for quick returns on short-term investments.

• Mortgage-backed and Other Asset-backed Securities

  Mortgage-backed securities (MBS) and other asset-backed securities (ABS) are forms of investment backed by loan portfolios or other financial assets. These securities provide regular income streams and have risk levels that vary depending on the underlying assets' performance.

• Loans

  The fund also invests in loans, including bank loans. This diversifies its investment portfolio further by incorporating debt instruments that can offer higher yields compared to more traditional securities, albeit with a corresponding increase in risk.