Diversify & Boost Your Core Bond Portfolio With NBTR

Economic Outlook - Signs of economic struggles in the U.S. are increasing ahead of the Federal Reserve's interest rate meeting in September, leading advisors and investors to consider increasing longer duration exposures in their portfolios in anticipation of potential rate cuts [1][2] Job Market Data - Recent jobs market data shows notable weakening, with August hiring significantly below expectations at just 22,000 jobs added. Additionally, the Bureau of Labor Statistics revised the number of jobs added downward by 911,000 for the period between April 2024 and March 2025, indicating a more fragile labor market and supporting expectations for rate cuts [2] Investment Strategy - Many advisors and investors have maintained underweights in longer duration bonds due to uncertainty surrounding inflation and interest rates. If rate cuts resume, increasing core bond exposures through the Neuberger Berman Total Return Bond ETF (NBTR) may be beneficial [3] NBTR Fund Overview - The NBTR fund relies on a team of sector specialists to outperform across market cycles, offering fixed income diversification by investing in a variety of bonds, including government, corporate, mortgage-backed, and asset-backed securities. The majority of its investments are in investment-grade bonds, but up to 30% may include "junk bonds" [4] Investment Approach - The fund's strategy involves investing in undervalued securities while selling those deemed overvalued. It primarily focuses on domestic bonds, with up to 15% allocated to foreign bonds and utilizes derivatives for risk hedging and portfolio efficiency. The fund aims to maintain an average duration within two years of the Bloomberg U.S. Aggregate Bond Index [4][5] Portfolio Construction - Portfolio construction is informed by analysis from sector specialty research teams, considering factors such as cash flows, balance sheet strength, market positions, and financially material ESG factors when evaluating securities. The NBTR fund has an expense ratio of 0.37% [5]