Neuberger Berman is launching a UCITS offering of its 5G Connectivity Fund, which is a thematic global equity portfolio that invests in so-called key enablers and beneficiaries of 5G and future connectivity, the firm writes in a statement.

The investment universe includes 5G network infrastructure, Internet of Things devices, applications and services, and holdings from the portfolio count Keysight Technologies, Xilinix and Taiyo Yuden.

According to Mark Østergaard, managing director and head of Nordic client group, Nordic clients have shown keen interest in a global equity fund investing in the 5G revolution.

"The fact that we have several leading 5G companies in the region makes it very relevant here. Investors understand that 5G is set to revolutionize societies around the world and we are proud to be offering the first fund of its kind to clients in Europe,” he tells AMWatch.

The fund, which comprise between 40-60 stocks, declined by 12.83 percent gross of fees in the first quarter of 2020 compared to -21.37 percent for the MSCI ACWI Index.

Like the existing 5G strategy which was launched in December 2017, the fund will be co-managed by YT Boon, out of Neuberger Berman's Hong Kong office and Hari Ramanan from New York.

“5G will unleash a new wave of technological innovation across the world. It is estimated that 5G will enable USD 13.2 trillion of economic opportunities by 2035 and create over 22 million job opportunities. Active management will be key to identifying the winners and losers of this long-term secular theme as the market continues to evolve. In the initial phase of 5G deployment, we will focus on network infrastructure, whereas we envisage higher exposure to application and service providers in the latter stage of 5G development," Boon says in the statement.

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