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RNS Number : 4412V
NB Global Floating Rate Income Fund
12 January 2012
NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, DIRECTLY OR
INDIRECTLY, TO U.S. PERSONS OR INTO OR IN THE UNITED STATES,
AUSTRALIA, CANADA OR JAPAN.
12 January 2012
NB Global Floating Rate Income Fund Limited
C Share Portfolio Update
NB Global Floating Rate Income Fund Limited (the "Fund") is a
Guernsey incorporated closed-ended investment company. This Fund
targets an annualised net yield per share in the region of 5% on
the issue price in the first full year of investment, plus capital
appreciation, while seeking to protect investors from rising
interest rates. The Fund's managers expect to generate this yield
by investing in a global portfolio of more than 100 senior secured
corporate loans with selective use of senior bonds, diversified
across at least 15 industry sectors. The Fund is managed by three
accomplished portfolio managers backed by a credit team of over 30
investment professionals.
In September 2011 it raised an additional $187m of capital via a
C Share raise and this Factsheet is specific to that raise and
should be read in conjunction with the C Share update release of
28th October 2011.
As at December 31, 2011, the Company had invested approximately
94% of the net proceeds of the C Share issue. The C Share Portfolio
has therefore satisfied the percentage investment condition set out
in the C Share Prospectus, and the Company expects that the
conversion of the C Shares to ordinary shares ("Conversion") will
take place shortly after the next quarterly dividend is announced
in early January. The specific portfolio at this date:
u was split 90.2% USD and 9.8% EUR1
u was diversified across 27 industries with no industry representing over 13% of the invested
portfolio1
u was invested primarily in B (51.96%) and Ba (44.91%) rated
investments(1,2)
Market Environment(3)
December ended on a positive note with the S&P/LSTA
Leveraged Loan Index returning 0.51%, pushing the full-year return
to 1.52%, the thirteenth annual gain in the Index's fourteen year
history. From a quality perspective, BB and B rated issuers, where
the Fund's investments are concentrated, outperformed the overall
Index in 2011. In Europe, December was similarly positive with the
S&P European Leveraged Loan Index (ELLI) returning 0.89%,
taking the full year return to 0.72%.
The loan market experienced significant volatility throughout
the year (-4.4% in August; +2.9% in October) driven by a series of
extraordinary macroeconomic events, particularly the European
sovereign debt crisis. Despite the significant macro concerns, the
fundamentals of the underlying companies in the US remained strong,
as we expected. The default rate on the US S&P/LSTA Index was a
mere 0.17% for 2011, just above the all-time low of 0.15%. The Fund
has not experienced any defaults since inception. We continue to
expect the US default rate to track well below historical levels as
companies face very little in the way of near-term debt maturities
and maintain extremely healthy liquidity positions. On the ELLI the
default rate for the year was 4.1% and we expect this to rise to
between 5 - 7% in 2012, given the potential for one or two larger
defaults, as well as more acute operational/funding problems for
some of the smaller, more regionalised issuers in the ELLI.
Investment Pipeline
As is typical at year-end, the US forward calendar fell and now
sits at a two-year low of $5.1 billion, including $4.6 billion of
M&A-related paper. We expect the forward calendar to ramp up as
issuers continue to look to refinance debt and equity sponsors put
their uninvested capital to work. The European pipeline through
December was similarly light as arrangers continued to close
syndication of partially sold deals from earlier in the year. Given
the prevailing macro uncertainties in Europe, our buying focus
remains in the US and this is certainly reflective of the
investments made during December. We continue to maintain a bias
toward the primary issue market as these deals generally offer a 50
-100bps yield pick-up on comparable secondary market
opportunities.
Source: BNP Paribas and Bloomberg. Data as at 31 December 2011.
Past performance is not indicative of future returns.
1. Excluding cash.
2. Source: Moody's Investors Service.
3. Source: Standard & Poor's.
-ENDS-
For further information please contact:
Neuberger Berman Europe Limited +44 (0)20 3214 9000
Anji Stewart
FTI Consulting +44 (0)20 7269 7243
Neil Doyle
Ed Berry
Laura Pope
www.nbgfrif.com
Background Information
The Company is a registered closed-ended investment company
incorporated in Guernsey. The Company is managed by Neuberger
Berman Europe Limited, which has delegated certain of its
responsibilities and functions to the sub-investment manager,
Neuberger Berman Fixed Income LLC, both of which are indirect
wholly owned subsidiaries of NB Group. The Company's investment
objective is to provide its shareholders with regular dividends, at
levels that are sustainable, whilst growing the capital value of
its investment portfolio over the long term. To pursue its
investment objective, the Company will invest mainly in floating
rate senior secured loans issued in U.S. Dollars, Sterling, and
Euros by North American and European Union corporations,
partnerships and other business issuers.
This document is not for release, publication or distribution
(directly or indirectly) in or into the United States, Canada,
Australia or Japan or to any "U.S. person" as defined in Regulation
S under the United States Securities Act of 1933, as amended (the
"Securities Act") or into any other jurisdiction where applicable
laws prohibit its release, distribution or publication. This
document is not an offer to sell or a solicitation of any offer to
buy the securities referred to herein in the United States,
Australia, Canada or Japan or in any other jurisdiction where such
offer or sale would be unlawful. No recipient may distribute, or
make available, this document (directly or indirectly) to any other
person. Recipients of this document in jurisdictions outside the UK
should inform themselves about and observe any applicable legal
requirements in their jurisdictions. In particular, the
distribution of this document may in certain jurisdictions be
restricted by law. Accordingly, recipients represent that they are
able to receive this document without contravention of any
applicable legal or regulatory restrictions in the jurisdiction in
which they reside or conduct business.
This document has been prepared by NB Global Rate Income Fund
Limited ("NBGFRIF") and is the sole responsibility of NBGFRIF. No
liability whatsoever (whether in negligence or otherwise) arising
directly or indirectly from the use of this document is accepted
and no representation, warranty or undertaking, express or implied,
is or will be made by NBGFRIF, Neuberger Berman Europe Limited
("NBEL"), Oriel Securities Limited ("Oriel Securities") or Dexion
Capital plc ("Dexion") or any of their respective directors,
officers, employees, advisers, representatives or other agents
("Agents") for any information or any of the opinions contained
herein or for any errors, omissions or misstatements. None of
Neuberger Berman L.L.C., Neuberger Berman Group LLC, Neuberger
Berman Fixed Income LLC ("NBFI"), Oriel Securities, Dexion nor any
of their respective Agents makes or has been authorised to make any
representation or warranties (express or implied) in relation to
NBGFRIF or as to the truth, accuracy or completeness of this
document, or any other written or oral statement provided. In
particular, no representation or warranty is given as to the
achievement or reasonableness of, and no reliance should be placed
on any projections, targets, estimates or forecasts contained in
this document and nothing in this document is or should be relied
on as a promise or representation as to the future. The name
"Neuberger Berman" is used interchangeably throughout these
materials for a number of entities associated with the Neuberger
Berman Group and NBGFRIF and when used in this notice includes all
such entities.
This document is an advertisement and does not constitute a
prospectus or offering memorandum or an offer in respect of any
securities and is not intended to provide the basis for any
decision in respect of NBGFRIF or other evaluation of any
securities of NBGFRIF or any other entity and should not be
considered as a recommendation that any investor should subscribe
for or purchase any such securities. Neither the issue of this
document nor any part of its contents constitutes an offer to sell
or invitation to purchase any securities of NBGFRIF or any other
entity or any persons holding securities of NBGFRIF and no
information set out in this document or referred to in other
written or oral information are intended to form the basis of any
contract of sale, investment decision or any decision to purchase
any securities in it. An investment decision must be made solely on
the basis of the prospectus published by NBGFRIF. Copies of the
prospectus may be obtained, subject to applicable law, at no cost
from the registered office of NBGFRIF and are available for viewing
at the National Storage Mechanism, www.hemscott.com/nsm.do.
This document, any presentation made in conjunction with this
document and any accompanying materials (the \"Information
Materials") are preliminary and made available for information
purposes only. The Information Materials, which are not a
prospectus or listing particulars or an admission document, do not
contain any representations, do not constitute or form part of any
offer or invitation to sell or transfer, or to underwrite,
subscribe for or acquire, any shares or other securities, and do
not constitute or form any part of any solicitation of any such
offer or invitation, nor shall they are or any part of them or the
fact of their distribution form the basis of or be relied upon in
connection with any contract therefore, and do not constitute a
recommendation regarding the securities of NBGFRIF.
Neuberger Berman gives no undertaking to provide the recipient
with access to any additional information, or to update this
document or any additional information, or to correct any
inaccuracies in it which may become apparent and the distribution
of this document shall not be deemed to be any form of commitment
on the part of Neuberger Berman to proceed with any
transaction.
The securities described in this document have not been and will
not be registered under the Securities Act and may not be offered
or sold in the United States or to, or for the account or benefit
of, U.S. persons (as defined in Regulation S under the Securities
Act) absent registration or an applicable exemption from the
registration requirements of the Securities Act. NBGFRIF has not
been and will not be registered under the U.S. Investment Company
Act of 1940, as amended (the "Investment Company Act") and
investors will not be entitled to the benefits of that Act. No
offering of the securities is being made in the United States.
The merits or suitability of any securities must be
independently determined by the recipient on the basis of its own
investigation and evaluation of Neuberger Berman. Any such
determination should involve, among other things, an assessment of
the legal, tax, accounting, regulatory, financial, credit and other
related aspects of the securities. Recipients of this document are
recommended to seek their own independent legal, tax, financial and
other advice and should rely solely on their own judgment, review
and analysis in evaluating Neuberger Berman, its business and its
affairs. Potential investors and their representatives are invited
to ask questions of, and receive answers from, NBEL and NBFI
concerning the contemplated investment to the extent the same can
be acquired without unreasonable effort or expense, in order to
verify the accuracy of the information herein.
This document may contain certain forward-looking statements.
Forward-looking statements relate to expectations, beliefs,
projections, future plans and strategies, anticipated events or
trends and similar expressions concerning matters that are not
historical facts. In some cases, forward-looking statements can be
indentified by terms such as "anticipate", believe", "could",
"estimate", "expect", "intend", "may", "plan", "potential",
"should", "will", and "would", or the negative of those terms or
other comparable terminology. The forward-looking statements are
based on Neuberger Berman's beliefs, assumptions, and expectations
of future performance and market developments, taking into account
all information currently available. These beliefs, assumptions,
and expectations can change as a result of many possible events or
factors, not all of which are known or are within Neuberger
Berman's control. If a change occurs, the NBGFRIF's business,
financial condition, liquidity, and results of operations may vary
materially from those expressed in forward-looking statements. Some
of the factors that could cause actual results to vary from those
expressed in forward-looking statements, include, but are not
limited to: the factors described in this document; the rate at
which NBGFRIF deploys its capital in investments and achieves
expected rates of return; NBGFRIF, NBEL and NBFI's ability to
execute NBGFRIF's investment strategy, including through the
identification of a sufficient number of appropriate investments;
the continuation of NBEL and NBFI as investment manager and
subinvestment manager, respectively, of NBGFRIF's investments, the
continued affiliation with Neuberger Berman of its key investment
professionals; NBGFRIF's financial condition and liquidity; changes
in the values of or returns on investments that the Company makes;
changes in financial markets, interest rates or industry, general
economic or political conditions; and the general volatility of the
capital markets and the market price of NBGFRIF's shares.
By their nature, forward-looking statements involve known and
unknown risks and uncertainties because they relate to events, and
depend on circumstances that may or may not occur in the future.
Forward-looking statements are not guarantees of future
performance. Any forward-looking statements are only made as at the
date of this document, and Neuberger Berman neither intends nor
assumes any obligation to update forward-looking statements set
forth in this document whether as a result of new information,
future events, or otherwise, except as required by law or other
applicable regulation. In light of these risks, uncertainties, and
assumptions, the events described by any such forward-looking
statements might not occur. Neuberger Berman qualifies any and all
of their forward-looking statements by these cautionary factors.
Please keep this cautionary note in mind while reading this
document.
Oriel Securities and Dexion, each of which is authorised and
regulated in the United Kingdom by the Financial Services
Authority, are acting for NBGFRIF and no-one else in connection
with the offering of securities by NBGFRIF and will not be
responsible to anyone other than NBGFRIF for providing the
protections afforded to customers of Oriel Securities and Dexion or
for providing advice in relation to the offer of securities by
NBGFRIF. By reading this document you will be deemed to have
represented, warranted and undertaken for the benefit of Neuberger
Berman, Oriel Securities and Dexion and others that (a) you are
outside of the United States, (b) you have read and agree to comply
with the contents of this notice, you will keep the information in
this document and delivered during any accompanying document and
all information about Neuberger Berman confidential, and will not
reproduce or distribute, in whole or in part, (directly or
indirectly) any such information, until such information has been
made publicly available and take all reasonable steps to preserve
such confidentiality, and (c) you are permitted, in accordance with
applicable laws, to receive such information.
This document is issued by Neuberger Berman Europe Limited,
which is authorised and regulated by the United Kingdom Financial
Services Authority and whose registered address is at Lansdowne
House, 57 Berkeley Square, London, W1J 6ER. Neuberger Berman LLC is
a registered Investment Adviser and Broker Dealer and member of the
New York Stock Exchange, the Financial Industry Regulation
Authority and the Securities Investor Protection Corporation.
Neuberger Berman Fixed Income LLC is a U.S.-registered Investment
Adviser. Neuberger Berman is a registered trademark.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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