Neuberger Berman has launched a UCITS strategy tapping into the key enablers and beneficiaries of the long-term evolution of next generation mobility.
The Neuberger Berman Next Generation Mobility Fund aims to exploit investment opportunities created by the ongoing disruption of the USD4.2 trillion global transportation industry.
Originating from Neuberger Berman’s established global research platform, the Fund’s three managers, Saurin Shah, Yan Taw Boon and Michael Barr will be managing a portfolio of 40-60 handpicked stocks, seeking to gain exposure to companies providing solutions to the proliferation of autonomous, electric and connected vehicles, as well as firms well-positioned to benefit from these new technologies.
“Cars are getting smarter, and that means more sensors, processing power and software. For investors, we believe this creates opportunities in companies that are well-positioned to supply these elements to the car makers, as well as aggregators who can package multiple products for them,” Boon explains.
“Making cars is a highly complex process with new model introductions typically taking three-to-five years of advance planning due to stringent product safety and reliability requirements which oblige suppliers to achieve auto grade certification before selling components to the major global automakers. As a consequence, we are witnessing the convergence of automotive and technology companies as a range of players compete for market share in the new era of mobility.
Shah adds: “The three trends of next generation mobility – autonomous, connected and electric vehicles – will accelerate the paradigm shift towards auto tech and require investment expertise in autos and tech as well as the need for careful analysis and portfolio diversification. Moreover, while some parts of the next generation mobility theme are many years away (omnipresent robo-taxis), there are considerable revenue and profit pools here and now and they are set to grow rapidly with greater adoption.”
Tom Douie (pictured), Head of Intermediary – EMEA & LatAm, says: “Neuberger Berman has a long history of managing thematic equity strategies and we are excited to bring one such strategy to our UCITS fund range. We believe our Next Generation Mobility Fund offers investors a compelling opportunity to benefit from a technological revolution that will likely affect everyday lives for many years to come.”
The Fund is a sub-fund of the Irish-domiciled UCITS fund umbrella, Neuberger Berman Investment Funds plc. It has been registered for sale in the UK and across Europe and is in the process of being registered for sale in Switzerland and across Asia.