Bond Mutual Funds

Fair Oaks Income Fund Limited has announced that Fair Oaks Income Fund LP has entered into binding contracts to acquire, in the primary market, $26.4 million notional of equity notes, representing 75% of the total equity of Neuberger Berman CLO XIX, a new CLO backed by a portfolio of US broadly syndicated, secured loans.....

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The manager of this CLO's portfolio is Neuberger Berman Fixed Income LLC, a subsidiary of Neuberger Berman LLC, which is an independent, employee-owned, asset management firm with $250 billion assets under management in equity, fixed income, and alternatives. Neuberger Berman LLC manages $38 billion of non-investment grade assets, including $9 billion of loans.

This CLO's current target portfolio has a principal value of $400 million across an expected 160 unique bank loan issuers, with an expected weighted average exposure per issuer of approximately 0.6%.

The potential total return for this investment as estimated by the general partner of the Master Fund (the "General Partner") is between 14% and 16% per annum (see Note 1).

After this investment, the Company will be 90% invested. In light of the current cash balance and the Shareholder authorities granted at the recent AGM and the continuing deployment into attractive investments, the Company is considering its options to issue Ordinary or C shares. It is expected that any new shares would be issued on terms comparable to recent issues by the Company.


1) The General Partner's estimate of the potential total return for this investment in calculated across certain scenarios and subject to certain assumptions. This and any other references herein to potential future returns or distributions are targets and not forecasts and there can be no guarantee or assurance that they will be achieved.

2) This document is for information purposes only and is not an offer to invest. All investments are subject to risk. Past performance is no guarantee of future returns. Prospective  investors are  advised  to seek  expert  legal, financial, tax  and other  professional advice  before making  any  investment decisions.



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