Neuberger Berman Files ETF Targeting Floating Rate Loans and High-Yield Debt

Neuberger Berman has filed to launch the Neuberger Floating Rate Income ETF (NFRI), an actively managed fund that will invest at least 80% of its assets in floating rate securities, including loans, and investment companies providing exposure to such instruments. The fund will primarily target U.S. dollar-denominated senior secured loans issued by U.S. and foreign companies, with a focus on below-investment-grade borrowers. It may also invest in second-lien and unsecured loans, fixed-rate debt, convertible securities and distressed company loans. The strategy aims to generate positive returns through fundamental credit research, assessing borrowers' cash flow, liquidity, balance sheets and ability to service debt. Portfolio managers will adjust allocations based on economic and sector conditions while seeking diversification across industries and issuers. Financially material ESG factors may also inform credit analysis, although the fund will not pursue a dedicated sustainability strategy.