Neuberger Berman: 2015 promises more complexity, more opportunity

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Portfolio Managers and CIOs at Neuberger Berman, one of the world’s leading employee-controlled investment managers, see 2015 as another year where careful security selection could help investors, as the firm anticipates a divergent mix in returns with select areas of strength, according to Solving for 2015, Neuberger Berman’s annual outlook across global equities, global fixed income, alternative and multi-asset class investments.

Solving for 2015 is available for download at www.nb.com/Solving2015. The site also features video presentations from Neuberger Berman senior investors.

“Since the financial crisis in 2008, central bank monetary policy has been quite synchronized across developed markets. This highly accommodative policy has helped with the economic healing, but the depth of weakness has resulted in an inconsistent level of recovery across global economies,” said Joseph Amato, President and Chief Investment Officer of Neuberger Berman.

“In 2015, we see central banks and growth rates of the major developed economies moving in different directions. Although the long-term trend for global growth appears positive, we anticipate variable market performance as investors come to terms with new economic realities across global markets.”

In equities, Amato anticipates that U.S. small caps are an appealing way to gain exposure to the asset class due to extensive exposure to the strong U.S. economy and improved valuations; slow growth in Europe may be hard to overcome and will affect stocks there; and emerging market valuations are appealing in light of growth rates, but investors need to be mindful of sector weightings.

“In fixed income, investors are watching closely to see how the European Central Bank (ECB) moves in 2015,” said Brad Tank, Global Chief Investment Officer, Fixed Income.

“In some ways, the Fed is old news at this point,” he said. “Whether it raises rates in June of 2015 or the following January is not as interesting to the markets as whether the ECB is on an effective path that prevents deflation. Currently, we’ve got small-scale quantitative easing being embraced in Europe, but the market expectation is that ultimately we may need larger-scale quantitative easing.”

According to Anthony Tutrone, Neuberger Berman’s Global Head of Alternatives, the private equity market continues to be robust in many areas, but “at the same time, higher valuations and the current economic climate pose challenges and reinforce the value of careful due diligence and attention to risk in making investment decisions.”

And while hedge funds were challenged in 2014, lower correlations and the gradual shift toward higher U.S. interest rates could help the asset class next year.

Erik Knutzen, Neuberger Berman’s Chief Investment Officer for Multi-Asset Class Solutions, emphasizes the importance of risk management in 2015. With both equities and bonds having had a strong run over the last several years, “…with the potential for more ‘normal’ market volatility, we believe that diversification, flexibility and a long-term perspective are especially important,” he said.

Solving for 2015 features discussions on topics including:

 

Investors’ Roundtable for Macro Perspective and Outlook

  • Joseph V. Amato, President and Chief Investment Officer
  • Erik L. Knutzen, CFA, CAIA, Chief Investment Officer—Multi-Asset Class
  • Brad Tank, Global Chief Investment Officer—Fixed Income
  • Anthony D. Tutrone, Global Head of Alternatives

Asset Allocation Views, Multi-Asset Class and Personal Strategy Discussion

Global Equities: U.S. Equity Markets, International Equity Markets, Emerging Equity Markets, Greater China Equity Markets (mainland China, Hong Kong and Taiwan)

Global Fixed Income: Developed Markets: Economy and Spread Sectors, Currency, U.S. Municipal Bonds, High Yield Bonds and Senior Floating Rate Loans, Emerging Markets

Alternatives: Private Equity, Hedge Funds, Long/Short.

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For further information please contact:

Paul O’Halloran – Phone: 03 9649 0906
Lucas Rooney – Phone: 03 9649 0912

 

About Neuberger Berman

Neuberger Berman is a 75-year-old private, independent, employee-controlled investment manager. The firm manages equities, fixed income, private equity and hedge fund portfolios for institutions and advisors worldwide. With offices in 17 countries, Neuberger Berman’s team is more than 2,000 professionals and the company was named by Pensions & Investments as a 2013 Best Place to Work in Money Management. Tenured, stable and long-term in focus, the firm fosters an investment culture of fundamental research and independent thinking. It manages $247 billion in client assets as of September 30, 2014. For more information, please visit our website at www.nb.com.

 

10 December 2014