Neuberger Berman Commodity Strategy Fund will be gaining exposure to both Bitcoin and Ethereum futures after filing with the SEC for a commodity-focused fund. Utilizing regulated futures, trusts, and exchange-traded funds, Neuberger Berman will gain exposure to crypto for the first time. The fund, which reportedly has more than $160 million in assets under management, will be primarily investing via a subsidiary to gain this exposure. Overall, the firm’s total assets under management are in excess of $400 billion.
The filing stipulates that “Fund assets not invested either in the Subsidiary or directly in commodity-linked derivative instruments will generally be invested in fixed income securities, cash or cash equivalent instruments, or money market mutual funds.”
According to the SEC filing, the Neuberger Berman Commodity Strategy Fund currently invests primarily in “commodity-linked futures contracts through a wholly-owned Subsidiary.” The firm is currently managed by Hakan Kaya, Thomas Sontag, David Wan, and Michael Foster. The largest asset managed by the fund is gold, which makes up nearly 8% of the shares. Corn and oil round out the top three at 7% and 6.6% respectively.
Crypto to hedge against inflation
Neuberger Berman says the goal in making the move toward cryptocurrency was designed to grow the fund’s use as an inflation hedge. In the meantime, however, it believes the price trends could be another source of revenue and help to diversify its portfolio.
Neuberger Berman stated in a blog post from March that, “from our perspective, the bitcoin phenomenon is worth watching closely.” The blog does go on to warn that “Those with exposure should understand the speculative nature of their investment and—potential windfalls notwithstanding—be prepared to part with almost all their committed capital.”
The news comes on the heels of Form D filing by Neuberger Berman with the SEC to be disclosed as a hedged-cryptocurrency volatility fund. The fund has yet to make a sale with the filing noting a minimum investment accepted from any outside investor of $5 million.