Neuberger Berman Unveils New Commodities Fund As Green Energy Transition Creates 'tailwinds'

He has managed a diversified commodities strategy since May 2010, having joined Neuberger Berman in 2008, has managed the Neuberger Berman Commodity Strategy in the US since inception.

The new Neuberger Berman Commodities fund will seek exposure to a broad range of commodities across various global sectors, such as energy, metals, agriculture and livestock, investing in commodity-related financial derivative instruments to deliver an "attractive level" of total return and capital appreciation to investors.

Kaya will be assisted on the fund by five others within the investment team at Neuberger Berman.

Neuberger Berman brings US Large Cap Value fund to Europe 

Kaya said: "The green energy transition has given the commodities market huge structural tailwinds. As political leaders look to meet their net-zero commitments, the demand for commodities will intensify, not only to supply clean energy but also the infrastructure to facilitate this new change.

"Interestingly, we're seeing scarcity across the commodities complex due to intense supply fragilities coupled with strong demand. This creates largely positive roll yields in the commodities complex, while the index has moved into positive roll yield territory, a characteristic that tends to be sticky and can boost existing price momentum."

Jose Cosio, head of global intermediary (ex US) at Neuberger Berman, said commodities can offer investors diversification and can be "a highly effective" inflation hedge.

"While risk is currently elevated as a result of heightened inflation pressures and renewed global geopolitical tensions, due to their low correlation, allocations to commodities have historically proven effective in providing balance to investor portfolios during such periods at all levels of risk appetite," Cosio added.

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