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Neuberger High Yield Strategies Fund
Neuberger Berman established the Neuberger High Yield Strategies Fund Inc.
Neuberger High Yield Strategies Fund
Neuberger Berman established the Neuberger High Yield Strategies Fund Inc. in 2010 as a closed-end management investment company registered under the Investment Company Act of 1940. The fund operates within Neuberger Berman's broader fixed-income platform, which managed approximately $154 billion across all strategies as of December 2024. The investment adviser, Neuberger Berman Investment Advisers LLC, delegates day-to-day management to the firm's non-investment grade credit group under portfolio managers Patrick Flynn and Simon Matthews. The fund invests across the US high-yield corporate bond market and the leveraged loan market, with flexibility to hold senior secured loans, second-lien loans, unsecured bonds, and convertible bonds. Positions are primarily in below-investment-grade issuers. The fund can allocate up to 20% of assets to securities rated CCC or below, and may hold foreign-currency-denominated debt hedged back to the dollar. Known portfolio names include exposure to household names in the private credit and sponsor-backed universe — companies like TransDigm, Carnival Corporation, and the credit instruments of large-cap leveraged buyouts. The geographic mandate is primarily US, with incidental exposure to developed Europe and Canada when credit pricing diverges. The fund's closed-end structure permits the use of leverage — typically through bank credit facilities or auction-rate preferred shares — to enhance yield, a key structural advantage that magnifies both income and volatility relative to unlevered peers. The fund's asset base has been estimated in the $200 million to $500 million range (Altss estimate), depending on market conditions and discount dynamics. Neuberger Berman's non-investment grade team, led from New York, draws on a research staff of over 25 credit analysts covering the high-yield and leveraged loan markets globally. The fund's board includes independent trustees, and the management fee structure is standard for the closed-end high-yield category, with a base fee and no incentive allocation. In a notable development from June 2023, the fund declared a continuation of its managed distribution policy at a 10% annualized rate, paid monthly — a yield supported by income and, when necessary, return of capital (per the firm, June 2023). This policy has defined the fund's investor base, which consists largely of retail advisors using the vehicle for current income. The fund's structural differentiator is its closed-end wrapper — a legacy product structure that provides permanent capital and allows the managers to buy into dislocated credit markets without facing forced selling during redemptions. Unlike open-end high-yield funds that must hold defensive cash positions, NHS can remain fully invested and levered through cycles. Its persistent discount to net asset value, which has ranged from 5% to 15% in recent years, creates a secondary-market entry point for opportunistic buyers that is not available in ETFs or mutual funds. The board of directors has periodically authorized share repurchases when the discount widens beyond historical norms, making the fund's governance an active component of its total return profile.
General information
Firm type
Asset Manager
Year founded
2010
AUM
$200M-$500M (Altss estimate)
Location
Region
North America
Country
United States
City
New York
Corporate office
New York, NY, United States
Principals
Joseph Amato
President, Neuberger Berman
Patrick Flynn
Portfolio Manager, Non-Investment Grade Credit
Sector focus
Frequently asked questions
Who runs the investment decisions at the Neuberger High Yield Strategies Fund?
The fund is sub-advised by Neuberger Berman's non-investment grade credit group, led by portfolio managers Patrick Flynn and Simon Matthews. Flynn has covered high-yield at Neuberger since 2008 and became the lead PM on the fixed-income side of the platform. Ultimate oversight sits with Neuberger Berman's president, Joseph Amato, and the fund's board of directors, which includes a majority of independent trustees.
How is the fund's high distribution rate sustained, and what is the risk profile?
The fund has maintained a managed distribution policy at a 10% annualized rate, paid monthly, since at least mid-2023. This distribution is funded primarily from net investment income but may include return of capital when portfolio income is insufficient — a standard feature of managed-distribution closed-end funds. The use of leverage amplifies both income and downside risk. An allocator evaluating the vehicle should distinguish between the distribution rate and the fund's underlying total return on net assets.
Does the fund invest exclusively in bonds, or does it participate in loans and private credit?
The fund has a dual mandate across high-yield bonds and leveraged loans, both of which are traded instruments. It does not make private, illiquid credit investments directly. It can hold senior secured loans, second-lien loans, and unsecured corporate bonds, with the flexibility to shift between bonds and loans based on relative value. Up to 20% of assets can be in CCC-rated or lower names, and the fund may hedge foreign-currency exposure when investing outside the US.
How is the fund related to Neuberger Berman Group?
Neuberger Berman Investment Advisers LLC serves as the fund's investment adviser, with Neuberger Berman LLC as the sub-adviser providing the portfolio management team. The parent entity, Neuberger Berman Group LLC, is an employee-controlled private investment manager that went independent in 2009 after being acquired from Lehman Brothers' bankruptcy estate. The closed-end fund is a separate legal entity with its own board, shareholders, and listing on the NYSE.
What structural advantages does the closed-end format provide compared to a high-yield ETF?
The closed-end structure gives the portfolio managers permanent capital, meaning they are not forced to sell into declining markets to meet redemptions. This allows the fund to remain fully invested and use leverage through credit cycles. However, closed-end funds trade on an exchange at prices that can diverge from net asset value. NHS has historically traded at a discount, which creates a separate risk-and-reward consideration: an investor's total return depends on both the portfolio's performance and the movement of the discount.
What is the fee structure of the Neuberger High Yield Strategies Fund?
The fund charges a base management fee to Neuberger Berman Investment Advisers, computed as a percentage of average net assets. As a registered closed-end fund, it does not charge a performance or incentive fee. Exact fee levels and expense ratios are disclosed in the fund's annual shareholder report filed with the SEC, and are subject to expense caps that the adviser may voluntarily extend.
Does the fund maintain a share repurchase program?
Yes — the board of directors has periodically authorized share repurchases when the fund's discount to net asset value widens beyond historical norms. This governance mechanism can provide a floor for the discount during periods of market stress. Repurchase activity is not continuous; the board evaluates market conditions and the fund's financial position before acting. The program is disclosed in the fund's quarterly filings and earnings releases.
Profile maintained by Altss using OSINT (open-source intelligence), regulatory filings, licensed data partners, and verified direct submissions. Read the methodology. Last updated: . Continuous refresh with full update cycles at least every 30 days.
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