The board of NBLS is proposing a radical overhaul of the fund’s strategy which would see its mandate widened extensively in order to generate a high monthly income. In order to reflect the new mandate, the name of the fund would be changed to Neuberger Berman Global Monthly High Income Fund. NBLS currently exclusively invests in floating-rate loans. Under the proposals the investment mandate would broaden to also include conventional fixed income (both investment grade and high yield), as well as CLOs, mezzanine debt and even private corporate loans arranged exclusively for Neuberger Berman via its extensive industry contacts. By investing in more esoteric segments of the fixed-income markets typically available mainly to institutional investors, the intention is to harvest the illiquidity premium to generate 150 to 200 more basis points of yield than that available on NBLS’s current portfolio – i.e. a gross yield of c. 6.6% at current levels. NBLS would pay a monthly dividend under the proposals, with a target distribution set by the board at the start of each year based on its outlook for rates. The monthly distributions would start in October, with the first target set in January. It is expected to take four months to fully invest the less liquid alternative allocations. Current shareholders will be offered a cash exit for up to 40% of their shares in a redemption offer as an alternative to participating in the new structure. An enhanced discount-management policy would see a tender offer of 25% at a 2% discount to NAV twice yearly. Should NBLS’s NAV fall below £150m as a result, wind-up proposals will be put forward.