Neuberger Berman has converted its Neuberger Berman Commodity Strategy Fund into the Neuberger Berman Commodity Strategy ETF (NBCM ). The fully transparent active ETF begins trading today on the NYSE Arca.
Following the conversion, NBCM has about $196 million in assets.
NBCM invests in commodity-linked derivatives with an active risk-balanced, diversified approach that seeks to minimize the effects of market volatility. Tactical exposure adjustments expand potential alpha sources by considering top-down macro variables among commodity sectors along with individual commodity outlooks to take advantage of short- and long-term opportunities.
“The firm continually assesses where our investment expertise intersects with client demand and preference for an ETF vehicle,” said Scott Kilgallen, head of North America intermediary client coverage, in a news release. “Commodities can enhance strategic asset allocation by providing diversification benefits while potentially mitigating the effects of inflation.”
The ETF’s fixed income holdings are actively managed and designed to preserve capital and serve as collateral for the ETF’s derivative positions while also seeking to generate additional yield. The fund will continue to be managed by Hakan Kaya, David Wan, and Michael Foster.
“Advisors have seen the benefits of adding in broad commodities ETFs into client portfolios in 2022 to offset the pressure of falling equity and bond prices,” said Todd Rosenbluth, head of research at VettaFi. “It’s exciting to watch Neuberger Berman further penetrate the ETF market given its strong brand and investment expertise.”
NBCM joins the suite of actively managed ETFs that Neuberger Berman launched in April. The ETFs are an extension of the firm’s thematic equity investment capabilities using traditional fundamental equity research along with alternative data capabilities and consideration of material environmental, social, and governance factors.
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