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 USD4.2 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 per cent 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.
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.
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 USD13.2 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.”