US asset manager Neuberger Berman has announced the launch of a new Ucits compliant version of its existing small cap intrinsic value fund, in a bid to expand distribution to European investors.
The small cap intrinsic value strategy has been running for US clients since 1997 and as a US mutual fund since 2010.
“Small caps are likely to benefit from the increasing levels of M&A activity in the U.S”, said Benjamin Nahum, manager of the Neuberger Berman US Small Cap Intrinsic Value Fund.
“Since February last year there have been 864 deals in the UStotalling over $5trn. This activity is likely to continue given healthy stock market performance, the low interest rate environment and while alternative uses of cash, such as debt repayment, are looking less attractive to large-caps” he adds.
The Neuberger Berman US Small Cap Intrinsic Value Fund is a sub-fund of the Irish-Domiciled Ucits fund umbrella, Neuberger Berman Investment Funds plc. It is registered in the UK and will shortly be registered for sale across Europe.