Neuberger
Berman Equity Funds
|
|
Class
R6 |
Neuberger
Berman Dividend Growth Fund |
|
NRDGX |
Neuberger
Berman Emerging Markets Equity Fund |
|
NREMX |
Neuberger
Berman Genesis Fund |
|
NRGSX |
Neuberger
Berman International Equity Fund |
|
NRIQX |
Neuberger
Berman International Select Fund |
|
NRILX |
Neuberger
Berman International Small Cap Fund |
|
NIORX |
Neuberger
Berman Intrinsic Value Fund |
|
NRINX |
Neuberger
Berman Large Cap Growth Fund |
|
NGRDX |
Neuberger
Berman Large Cap Value Fund |
|
NRLCX |
Neuberger
Berman Mid Cap Growth Fund |
|
NRMGX |
Neuberger
Berman Mid Cap Intrinsic Value Fund |
|
NBMRX |
Neuberger
Berman Real Estate Fund |
|
NRREX |
Neuberger
Berman Small Cap Growth Fund |
|
NSRSX |
Neuberger
Berman Sustainable Equity Fund |
|
NRSRX |
Prospectus
December 18, 2023
These
securities, like the securities of all mutual funds, have not been approved or
disapproved by the Securities and Exchange Commission, and the Securities and
Exchange Commission has not determined if this prospectus is accurate or
complete. Any representation to the contrary is a criminal offense.
Contents
Neuberger
Berman Equity Funds
Fund Summaries
Neuberger Berman Dividend Growth Fund
Class R6
Shares (NRDGX)
GOAL
The Fund
seeks long term capital appreciation and current
income.
Fees and
Expenses
These tables
describe the fees and expenses that you may pay if you buy, hold or sell shares
of the Fund. You may pay other fees, such as brokerage commissions and other
fees to financial intermediaries, which are not reflected in the table and
example below.
Shareholder Fees (fees paid
directly from your investment) |
|
None |
Annual Fund Operating Expenses
(expenses that you pay each year as a % of the value of your
investment) |
|
|
Management
fees |
|
0.55 |
Distribution
and/or shareholder service (12b-1) fees |
|
None |
Other
expenses |
|
0.70 |
Total
annual operating expenses |
|
1.25 |
Fee
waivers and/or expense reimbursement |
|
0.65 |
Total
annual operating expenses after fee waivers and/or expense
reimbursement1 |
|
0.60 |
Expense
Example
The expense
example can help you compare costs among mutual funds. The example assumes that
you invested $10,000 for the periods shown, that you redeemed all of your shares
at the end of those periods, that the Fund earned a hypothetical 5% total return
each year, and that the Fund’s expenses were those in the table. Actual
performance and expenses may be higher or lower.
|
|
1
Year |
|
3
Years |
|
5
Years |
|
10
Years |
Class
R6 |
|
$61 |
|
$192 |
|
$487 |
|
$1,328 |
Portfolio
Turnover
The Fund
pays transaction costs, such as commissions, when it buys and sells securities
(or “turns over” its portfolio). A higher portfolio turnover rate may indicate
higher transaction costs and may result in higher taxes when Fund shares are
held in a taxable account. These costs, which are not reflected in annual
operating expenses or in the example, affect the Fund’s performance. During the
most recent fiscal year, the Fund’s portfolio turnover rate was 18% of the average
value of its portfolio.
Principal Investment
Strategies
To pursue
its goal, the Fund normally invests at least 80% of its net assets in equity
securities that pay dividends. The Fund may invest in companies of any market
capitalization. Although the Fund invests primarily in domestic securities, it
may also invest in securities of foreign companies, including companies in
emerging markets. The Fund mainly invests in common stocks but may invest up to
10% of its net assets in master limited partnerships (“MLPs”) and up to 10% of
its net assets in convertible securities. The Fund may invest in convertible
securities that are rated below investment grade (commonly known as “junk
bonds”) or, if unrated, are determined by the Portfolio Managers to be of
comparable quality.
The
Portfolio Managers use bottom-up, fundamental security analysis to identify
companies that they believe have sustainable and growing dividends, and ideally
seek to buy them when they appear temporarily out-of-favor or undervalued by the
market. The price of the company’s securities in relation to its cash flow,
earnings, dividends, book value and asset value, both historical and
prospective, are key determinants in the security selection process. Emphasis is
also placed on identifying companies undergoing
changes that
the Portfolio Managers believe will enhance shareholder value in the future,
including changes in operations, management, capital allocation, strategies and
product offerings.
The Fund may
also invest in real estate investment trusts (“REITs”).
The
Portfolio Managers follow a disciplined selling strategy and may sell a security
when it reaches a target price, if a company’s business fails to perform as
expected, when other opportunities appear more attractive or when the Portfolio
Managers believe the holding has grown too large relative to the rest of the
portfolio.
The Fund
will not change its strategy of normally investing at least 80% of its net
assets in equity securities that pay dividends, without providing shareholders
at least 60 days’ notice. This test is applied at the time the Fund invests;
later percentage changes caused by a change in Fund assets, market values or
company circumstances will not require the Fund to dispose of a
holding.
PRINCIPAL INVESTMENT
RISKS
Most of the
Fund’s performance depends on what happens in the stock market, the Portfolio
Managers’ evaluation of those developments, and the success of the Portfolio
Managers in implementing the Fund’s investment strategies. The market’s behavior
can be difficult to predict, particularly in the short term. There can be no
guarantee that the Fund will achieve its goal. The Fund may take temporary
defensive and cash management positions; to the extent it does, it will not be
pursuing its principal investment strategies.
The actual
risk exposure taken by the Fund in its investment program will vary over time,
depending on various factors including the Portfolio Managers’ evaluation of
issuer, political, regulatory, market, or economic developments. There can be no
guarantee that the Portfolio Managers will be successful in their attempts to
manage the risk exposure of the Fund or will appropriately evaluate or weigh the
multiple factors involved in investment decisions, including issuer, market
and/or instrument-specific analysis and valuation.
The Fund is a mutual fund, not a bank deposit, and is not
guaranteed or insured by the Federal Deposit Insurance Corporation or any other
government agency. The value of your investment may fall, sometimes sharply,
and you could lose money by investing in the
Fund.
Each of the
following risks, which are described in alphabetical order and not in order of
any presumed importance, can significantly affect the Fund’s performance. The
relative importance of, or potential exposure as a result of, each of these
risks will vary based on market and other investment-specific
considerations.
Convertible
Securities Risk. The value of a convertible security, which is a form of
hybrid security (i.e., a security with both debt and equity characteristics),
typically increases or decreases with the price of the underlying common stock.
In general, a convertible security is subject to the market risks of stocks when
the underlying stock’s price is high relative to the conversion price and is
subject to the market risks of debt securities when the underlying stock’s price
is low relative to the conversion price. The general market risks of debt
securities that are common to convertible securities include, but are not
limited to, interest rate risk and credit risk -- that is, the value of
convertible securities will move in the direction opposite to movements in
interest rates; they are subject to the risk that the issuer will not be able to
pay interest or dividends when due; and their market value may change based on
changes in the issuer’s credit rating or the market’s perception of the issuer’s
creditworthiness. Many convertible securities have credit ratings that are below
investment grade and are subject to the same risks as an investment in
lower-rated debt securities (commonly known as “junk bonds”). Lower-rated debt
securities may fluctuate more widely in price and yield than investment grade
debt securities and may fall in price during times when the economy is weak or
is expected to become weak. To the extent the Fund invests in convertible
securities issued by small- or mid-cap companies, it will be subject to the
risks of investing in such companies.
Currency
Risk. Currency risk is the risk that foreign currencies will decline in
value relative to the U.S. dollar. To the extent that the Fund invests in
securities or other instruments denominated in or indexed to foreign currencies,
changes in currency exchange rates could adversely impact investment gains or
add to investment losses. Currency exchange rates may fluctuate significantly
over short periods of time and can be affected unpredictably by various factors,
including investor perception and changes in interest rates; intervention, or
failure to intervene, by U.S. or foreign governments, central banks, or
supranational entities; or by currency controls or political developments in the
U.S. or abroad.
Dividend
Risk. There is no guarantee that the companies in which the Fund invests
will declare dividends in the future or that dividends, if declared, will remain
at current levels or increase over time. Changes in a company’s dividend
policies may negatively impact the Fund. Securities that pay dividends may be
sensitive to changes in interest rates, and as interest rates rise or fall,
the
prices of
such securities may be impacted. During a broad market advance, securities that
pay dividends may not appreciate as much as securities that do not pay
dividends.
Foreign
and Emerging Market Risk. Foreign securities involve risks in addition to
those associated with comparable U.S. securities. Additional risks include
exposure to less developed or less efficient trading markets; social, political,
diplomatic, or economic instability; trade barriers and other protectionist
trade policies (including those of the U.S.); imposition of economic sanctions
against a particular country or countries, organizations, companies, entities
and/or individuals; significant government involvement in an economy and/or
market structure; fluctuations in foreign currencies or currency redenomination;
potential for default on sovereign debt; nationalization or expropriation of
assets; settlement, custodial or other operational risks; higher transaction
costs; confiscatory withholding or other taxes; and less stringent auditing and
accounting, corporate disclosure, governance, and legal standards. As a result,
foreign securities may fluctuate more widely in price, and may also be less
liquid, than comparable U.S. securities. Regardless of where a company is
organized or its stock is traded, its performance may be affected significantly
by events in regions from which it derives its profits or in which it conducts
significant operations.
Investing in
emerging market countries involves risks in addition to and greater than those
generally associated with investing in more developed foreign countries. The
governments of emerging market countries may be more unstable and more likely to
impose capital controls, nationalize a company or industry, place restrictions
on foreign ownership and on withdrawing sale proceeds of securities from the
country, intervene in the financial markets, and/or impose burdensome taxes that
could adversely affect security prices. To the extent a foreign security is
denominated in U.S. dollars, there is also the risk that a foreign government
will not let U.S. dollar-denominated assets leave the country. In addition, the
economies of emerging market countries may be dependent on relatively few
industries that are more susceptible to local and global changes. Emerging
market countries may also have less developed legal and accounting systems, and
their legal systems may deal with issuer bankruptcies and defaults differently
than U.S. law would. Securities markets in emerging market countries are also
relatively small and have substantially lower trading volumes. Securities of
issuers in emerging market countries may be more volatile and less liquid than
securities of issuers in foreign countries with more developed economies or
markets and the situation may require that the Fund fair value its holdings in
those countries.
Securities
of issuers traded on foreign exchanges may be suspended, either by the issuers
themselves, by an exchange, or by governmental authorities. The likelihood of
such suspensions may be higher for securities of issuers in emerging or
less-developed market countries than in countries with more developed markets.
Trading suspensions may be applied from time to time to the securities of
individual issuers for reasons specific to that issuer, or may be applied
broadly by exchanges or governmental authorities in response to market events.
Suspensions may last for significant periods of time, during which trading in
the securities and in instruments that reference the securities, such as
derivative instruments, may be halted. In the event that the Fund holds material
positions in such suspended securities or instruments, the Fund’s ability to
liquidate its positions or provide liquidity to investors may be compromised and
the Fund could incur significant losses.
Growth
Stock Risk. Because the prices of most growth stocks are based on future
expectations, these stocks tend to be more sensitive than value stocks to bad
economic news and negative earnings surprises. When these expectations are not
met or decrease, the prices of these stocks may decline, sometimes sharply, even
if earnings showed an absolute increase. Bad economic news or changing investor
perceptions may adversely affect growth stocks across several sectors and
industries simultaneously.
Interest
Rate Risk. In general, the value of investments with interest rate risk,
such as income-oriented equity securities that pay dividends, will move in the
direction opposite to movements in interest rates. If interest rates rise, the
value of such securities may decline.
Issuer-Specific
Risk. An individual security may be more volatile, and may perform
differently, than the market as a whole.
Market
Capitalization Risk. To the extent the Fund invests in securities of small-,
mid-, or large-cap companies, it takes on the associated risks. At times, any of
these market capitalizations may be out of favor with investors. Compared to
small- and mid-cap companies, large-cap companies may be unable to respond as
quickly to changes and opportunities and may grow at a slower rate. Compared to
large-cap companies, small- and mid-cap companies may depend on a more limited
management group, may have a shorter history of operations, less publicly
available information, less stable earnings, and limited product lines, markets
or financial resources. The securities of small- and mid-cap companies are often
more volatile, which at times can be rapid and unpredictable, and less liquid
than the securities of larger companies and may be more affected than other
types of securities by the underperformance of a sector, during market
downturns, or by adverse publicity and investor perceptions.
Market
Volatility Risk. Markets may be volatile and values of individual securities
and other investments, including those of a particular type, may decline
significantly in response to adverse issuer, political, regulatory, market,
economic or other
developments
that may cause broad changes in market value, public perceptions concerning
these developments, and adverse investor sentiment or publicity. Geopolitical
and other risks, including environmental and public health risks may add to
instability in world economies and markets generally. Changes in value may be
temporary or may last for extended periods. If the Fund sells a portfolio
position before it reaches its market peak, it may miss out on opportunities for
better performance.
Master
Limited Partnership Risk. Investing in MLPs involves certain risks related
to investing in the underlying assets of the MLPs and risks associated with
pooled investment vehicles. MLPs holding credit-related investments are subject
to interest rate risk and the risk of default on payment obligations by debt
issuers. MLPs that concentrate in a particular industry or a particular
geographic region are subject to risks associated with such industry or region.
Investments held by MLPs may be relatively illiquid, limiting the MLPs’ ability
to vary their portfolios promptly in response to changes in economic or other
conditions. MLPs may have limited financial resources, their securities may
trade infrequently and in limited volume, and they may be subject to more abrupt
or erratic price movements than securities of larger or more broadly based
companies, and may be difficult to value. Distributions from an MLP may consist
in part of a return of the amount originally invested, which would not be
taxable to the extent the distributions do not exceed the investor’s adjusted
basis in its MLP interest. These reductions in the Fund’s adjusted tax basis in
the MLP securities will increase the amount of gain (or decrease the amount of
loss) recognized by the Fund on a subsequent sale of the securities.
Effective
for taxable years beginning after December 31, 2017 and before
January 1, 2026, the Internal Revenue Code of 1986, as amended (the
“Code”), generally allows individuals and certain other non-corporate entities,
such as partnerships, a deduction for 20% of “qualified publicly traded
partnership income” such as income from MLPs. However, the Code does not include
any provision for a regulated investment company to pass the character of its
qualified publicly traded partnership income through to its shareholders. As a
result, although the Treasury Department has announced that it is considering
adopting regulations to provide a pass-through, an investor who invests directly
in MLPs will be able to receive the benefit of that deduction, while a
shareholder in the Fund currently will not.
Recent
Market Conditions. Both U.S. and international markets have experienced
significant volatility in recent months and years. As a result of such
volatility, investment returns may fluctuate significantly. National economies
are substantially interconnected, as are global financial markets, which creates
the possibility that conditions in one country or region might adversely impact
issuers in a different country or region. However, the interconnectedness of
economies and/or markets may be diminishing, which may impact such economies and
markets in ways that cannot be foreseen at this time.
Although
interest rates were unusually low in recent years in the U.S. and abroad,
recently, the Federal Reserve and certain foreign central banks raised interest
rates as part of their efforts to address rising inflation. It is difficult to
accurately predict the pace at which interest rates might increase, the timing,
frequency or magnitude of any such increases in interest rates, or when such
increases might stop. Additionally, various economic and political factors could
cause the Federal Reserve or other foreign central banks to change their
approach in the future and such actions may result in an economic slowdown both
in the U.S. and abroad. Unexpected changes in interest rates could lead to
market volatility or reduce liquidity in certain sectors of the market.
Deteriorating economic fundamentals may, in turn, increase the risk of default
or insolvency of particular issuers, negatively impact market value, cause
credit spreads to widen, and reduce bank balance sheets. Any of these could
cause an increase in market volatility, or reduce liquidity across various
markets or decrease confidence in the markets.
Some
countries, including the U.S., have adopted more protectionist trade policies.
Slowing global economic growth, the rise in protectionist trade policies,
changes to some major international trade agreements, risks associated with the
trade agreement between the United Kingdom and the European Union, and the risks
associated with trade negotiations between the U.S. and China, could affect the
economies of many nations in ways that cannot necessarily be foreseen at the
present time. In addition, the current strength of the U.S. dollar may decrease
foreign demand for U.S. assets, which could have a negative impact on certain
issuers and/or industries.
Regulators
in the U.S. have proposed and adopted a number of changes to regulations
involving the markets and issuers, some of which apply to the Fund. The full
effect of various newly adopted regulations is not currently known.
Additionally, it is not currently known whether any of the proposed regulations
will be adopted. However, due to the scope of regulations being proposed and
adopted, certain of these changes to regulation could limit the Fund’s ability
to pursue its investment strategies or make certain investments, may make it
more costly for it to operate, or adversely impact performance.
Tensions,
war, or open conflict between nations, such as between Russia and Ukraine, in
the Middle East, or in eastern Asia could affect the economies of many nations,
including the United States. The duration of ongoing hostilities and any
sanctions and related events cannot be predicted. Those events present material
uncertainty and risk with respect to markets globally and the performance of the
Fund and its investments or operations could be negatively impacted.
High public
debt in the U.S. and other countries creates ongoing systemic and market risks
and policymaking uncertainty. There is no assurance that the U.S. Congress will
act to raise the nation’s debt ceiling; a failure to do so could cause market
turmoil and substantial investment risks that cannot now be fully predicted.
Unexpected political, regulatory and diplomatic events within the U.S. and
abroad may affect investor and consumer confidence and may adversely impact
financial markets and the broader economy.
There is
widespread concern about the potential effects of global climate change on
property and security values. Certain issuers, industries and regions may be
adversely affected by the impact of climate change in ways that cannot be
foreseen. The impact of legislation, regulation and international accords
related to climate change may negatively impact certain issuers and/or
industries.
Redemption
Risk. The Fund may experience periods of large or frequent redemptions that
could cause the Fund to sell assets at inopportune times, which could have a
negative impact on the Fund’s overall liquidity, or at a loss or depressed
value. Redemption risk is greater to the extent that one or more investors or
intermediaries control a large percentage of investments in the Fund and the
risk is heightened during periods of declining or illiquid markets. Large
redemptions could hurt the Fund’s performance, increase transaction costs, and
create adverse tax consequences.
REITs and
Other Real Estate Companies Risk. REITs and other real estate company
securities are subject to risks similar to those of direct investments in real
estate and the real estate industry in general, including, among other risks:
general and local economic conditions; changes in interest rates; declines in
property values; defaults by mortgagors or other borrowers and tenants;
increases in property taxes and other operating expenses; overbuilding in their
sector of the real estate market; fluctuations in rental income; lack of
availability of mortgage funds or financing; extended vacancies of properties,
especially during economic downturns; changes in tax and regulatory
requirements; losses due to environmental liabilities; casualty or condemnation
losses; changing social trends regarding working arrangements; or other
economic, social, political, or regulatory matters affecting the real estate
industry. REITs also are dependent upon the skills of their managers and are
subject to heavy cash flow dependency or self-liquidation.
Regardless
of where a REIT is organized or traded, its performance may be affected
significantly by events in the region where its properties are located. Domestic
REITs could be adversely affected by failure to qualify for tax-free
“pass-through” of distributed net investment income and net realized gains under
the Internal Revenue Code of 1986, as amended, (“Code”) or to maintain their
exemption from registration under the Investment Company Act of 1940, as
amended. The value of REIT common shares may decline when interest rates rise.
REITs and other real estate company securities tend to be small- to mid-cap
securities and are subject to the risks of investing in small- to mid-cap
securities.
Sector
Risk. From time to time, based on market or economic conditions, the Fund
may have significant positions in one or more sectors of the market. To the
extent the Fund invests more heavily in particular sectors, its performance will
be especially sensitive to developments that significantly affect those sectors.
Individual sectors or sub-sectors may be more volatile, and may perform
differently, than the broader market. The industries that constitute a sector
may all react in the same way to economic, political or regulatory
events.
Value
Stock Risk. Value stocks may remain undervalued for extended periods of
time, may decrease in value during a given period, may not ever realize what the
portfolio management team believes to be their full value, or the portfolio
management team’s assumptions about intrinsic value or potential for
appreciation may be incorrect. This may happen, among other reasons, because of
a failure to anticipate which stocks or industries would benefit from changing
market or economic conditions or investor preferences.
A summary
of the Fund’s additional principal investment risks is as
follows:
Risk of
Increase in Expenses. A decline in the Fund’s average net assets during the
current fiscal year due to market volatility or other factors could cause the
Fund’s expenses for the current fiscal year to be higher than the expense
information presented in “Fees and Expenses.”
Operational
and Cybersecurity Risk. The Fund and its service providers, and your ability
to transact with the Fund, may be negatively impacted due to operational matters
arising from, among other problems, human errors, systems and technology
disruptions or failures, or cybersecurity incidents. Cybersecurity incidents may
allow an unauthorized party to gain access to fund assets, customer data, or
proprietary information, or cause the Fund or its service providers, as well as
the securities trading venues and their service providers, to suffer data
corruption or lose operational functionality. Cybersecurity incidents can result
from deliberate attacks or unintentional events. It is not possible for the
Manager or the other Fund service providers to identify all of the cybersecurity
or other operational risks that may affect the Fund or to develop processes and
controls to completely eliminate or mitigate their occurrence or effects. Most
issuers in which the Fund invests are heavily dependent on computers for data
storage
and
operations, and require ready access to the internet to conduct their business.
Thus, cybersecurity incidents could also affect issuers of securities in which
the Fund invests, leading to significant loss of value.
Risk
Management. Risk is an essential part of investing. No risk management
program can eliminate the Fund’s exposure to adverse events; at best, it may
only reduce the possibility that the Fund will be affected by such events, and
especially those risks that are not intrinsic to the Fund’s investment program.
The Fund could experience losses if judgments about risk prove to be
incorrect.
Valuation
Risk. The Fund may not be able to sell an investment at the price at which
the Fund has valued the investment. Such differences could be significant,
particularly for illiquid securities and securities that trade in relatively
thin markets and/or markets that experience extreme volatility. If market or
other conditions make it difficult to value an investment, the Fund may be
required to value such investments using more subjective methods, known as fair
value methodologies. Using fair value methodologies to price investments may
result in a value that is different from an investment’s most recent price and
from the prices used by other funds to calculate their NAVs. The Fund uses
pricing services to provide values for certain securities and there is no
assurance that the Fund will be able to sell an investment at the price
established by such pricing services. The Fund’s ability to value its
investments in an accurate and timely manner may be impacted by technological
issues and/or errors by third party service providers, such as pricing services
or accounting agents.
PERFORMANCE
The
following bar chart and table provide an indication of the risks of investing in
the Fund. The bar chart
shows how the Fund’s performance has varied from year to year. The table below
the bar chart shows what the returns would equal if you averaged out actual
performance over various lengths of time and compares the returns with the
returns of a broad-based market index. The index, which
is described in “Descriptions of Indices” in the prospectus, has characteristics
relevant to the Fund’s investment strategy.
Returns
would have been lower if the Manager had not reimbursed certain expenses and/or
waived a portion of the investment management fees during certain of the periods
shown.
Past performance (before and
after taxes) is not a prediction of future results. Visit
www.nb.com
or call 800-366-6264 for
updated performance information.
year-by-year % Returns as of 12/31 each
year
Years |
Returns |
2013 |
0.00% |
2014 |
0.00% |
2015 |
0.00% |
2016 |
18.93% |
2017 |
17.70% |
2018 |
-12.18% |
2019 |
29.12% |
2020 |
19.19% |
2021 |
24.51% |
2022 |
-12.42% |
Best
quarter: Q2 2020 22.46%
Worst
quarter: Q1 2020 -23.21%
Year to Date performance as
of: 9/30/2023 6.47%
average annual total % returns as of
12/31/22
Dividend Growth
Fund |
|
1
Year |
|
5
Years |
|
Since
Inception (12/15/2015) |
Return
Before Taxes |
|
-12.42 |
|
8.07 |
|
10.82 |
Return
After Taxes on Distributions |
|
-13.27 |
|
7.22 |
|
10.04 |
Return
After Taxes on Distributions and Sale of Fund Shares |
|
-6.74 |
|
6.26 |
|
8.65 |
S&P
500® Index (reflects no deduction for
fees, expenses or taxes) |
|
-18.11 |
|
9.42 |
|
11.58 |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local
taxes. Actual after-tax returns depend on an investor’s
tax situation and may differ from those shown. After-tax returns are not
relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. Return After Taxes on
Distributions and Sale of Fund Shares may be higher than other returns for the
same period due to a tax benefit of realizing a capital loss upon the sale of
Fund shares.
INVESTMENT
MANAGER
Neuberger
Berman Investment Advisers LLC (“Manager”) is the Fund’s investment
manager.
PORTFOLIO
MANAGERS
The Fund is
managed by William D. Hunter (Managing Director of the Manager), and Shawn
Trudeau (Managing Director of the Manager). Mr. Hunter has served as Portfolio
Manager of the Fund since its inception in December 2015 and Mr. Trudeau
joined as a Portfolio Manager in December 2020.
Buying
and Selling Shares
You may
purchase, redeem (sell) or exchange shares of the Fund on any day the New York
Stock Exchange is open, at the Fund’s net asset value per share next determined
after your order is received in proper form. Shares of the Fund generally are
available only through certain investment providers, such as banks, brokerage
firms, retirement plan administrators, and financial advisers. Contact any
investment provider authorized to sell the Fund’s shares. See “Maintaining Your
Account” in the prospectus for eligibility requirements for purchases of Class
R6 shares.
For certain
institutional investors, shares of the Fund may be available directly from
Neuberger Berman BD LLC by regular, first class mail (Neuberger Berman Funds,
P.O. Box 219189, Kansas City, MO 64121-9189), by express delivery, registered
mail, or certified mail (Neuberger Berman Funds, 430 West 7th Street,
Suite 219189, Kansas City, MO 64105-1407), or by wire, fax, telephone, or
exchange (call 800-366-6264 for instructions). See “Maintaining Your Account” in
the prospectus for eligibility requirements for direct purchases of shares and
for instructions on buying and redeeming (selling) shares directly.
The Fund
does not impose minimum purchase requirements for Class R6 shares. However, you
should contact your investment provider to determine whether it imposes minimum
purchase requirements.
Tax
Information
Unless you
invest in the Fund through a tax-advantaged retirement plan or account or are a
tax-exempt investor, you will be subject to tax on Fund distributions to you of
ordinary income and/or net capital gains. Those distributions generally are not
taxable to such a plan or account or a tax-exempt investor, although withdrawals
from certain retirement plans and accounts generally are subject to federal
income tax.
Payments
to Investment Providers and Other Financial Intermediaries
If you
purchase shares of another class of the Fund through an investment provider or
other financial intermediary, such as a bank, brokerage firm, workplace
retirement program, or financial adviser (who may be affiliated with Neuberger
Berman), the Fund and/or Neuberger Berman BD LLC and/or its affiliates may pay
the intermediary for the sale of shares of those other classes of the Fund and
related services. These payments may create a conflict of interest by
influencing the investment provider or other financial intermediary and its
employees to recommend the Fund or those other classes of the Fund over another
investment. Neuberger Berman does not provide ongoing payments to third
parties for any record-keeping or administrative services in connection with
investments in Class R6. To the extent the Fund makes such payments with
respect to another class, they can come only out of the assets of that other
class.
Neuberger Berman Emerging Markets Equity Fund
Class R6
Shares (NREMX)
GOAL
The Fund
seeks long-term growth of capital.
Fees and
Expenses
These tables
describe the fees and expenses that you may pay if you buy, hold or sell shares
of the Fund. You may pay other fees, such as brokerage commissions and other
fees to financial intermediaries, which are not reflected in the table and
example below.
Shareholder Fees (fees paid
directly from your investment) |
|
None |
Annual Fund Operating Expenses
(expenses that you pay each year as a % of the value of your
investment) |
|
|
Management
fees |
|
1.03 |
Distribution
and/or shareholder service (12b-1) fees |
|
None |
Other
expenses |
|
0.19 |
Total
annual operating expenses |
|
1.22 |
Fee
waivers and/or expense reimbursement |
|
0.05 |
Total
annual operating expenses after fee waivers and/or expense
reimbursement1 |
|
1.17 |
Expense
Example
The expense
example can help you compare costs among mutual funds. The example assumes that
you invested $10,000 for the periods shown, that you redeemed all of your shares
at the end of those periods, that the Fund earned a hypothetical 5% total return
each year, and that the Fund’s expenses were those in the table. Actual
performance and expenses may be higher or lower.
|
|
1
Year |
|
3
Years |
|
5
Years |
|
10
Years |
Class
R6 |
|
$119 |
|
$372 |
|
$655 |
|
$1,463 |
Portfolio
Turnover
The Fund
pays transaction costs, such as commissions, when it buys and sells securities
(or “turns over” its portfolio). A higher portfolio turnover rate may indicate
higher transaction costs and may result in higher taxes when Fund shares are
held in a taxable account. These costs, which are not reflected in annual
operating expenses or in the example, affect the Fund’s performance. During the
most recent fiscal year, the Fund’s portfolio turnover rate was 58% of the average
value of its portfolio.
Principal Investment
Strategies
To pursue
its goal, the Fund normally invests at least 80% of its net assets, plus the
amount of any borrowings for investment purposes, in equity securities of
issuers in emerging market countries. These include securities of companies (1)
that are traded principally on a stock exchange or over-the-counter in emerging
market countries, (2) that are organized under the laws of and/or have a
principal office in emerging market countries, or (3) that derive 50% or more of
their total revenues from, and/or have 50% or more of their total assets in,
goods produced, sales made, profits generated or services performed in emerging
market countries. The Fund considers emerging market countries to be countries
included in the MSCI Emerging Markets Index.
The
Portfolio Manager uses a bottom-up, research-driven securities selection
approach focusing on businesses with a recent history of high returns while
factoring in economic, legislative and business developments to identify
countries and sectors that he believes may be particularly attractive. As part
of his fundamental investment analysis the Portfolio Manager considers
Environmental, Social and Governance (ESG) factors he believes are financially
material to individual investments, where applicable, as described below. While
this analysis is inherently subjective and may be informed by both internally
generated and third-party metrics, data and other information, the Portfolio
Manager believes that the consideration of financially material ESG factors,
alongside
9
Emerging Markets Equity Fund
traditional
financial metrics, may enhance the Fund’s overall investment process. The
consideration of ESG factors does not apply to certain instruments, such as
certain derivative instruments, other registered investment companies, cash and
cash equivalents. The consideration of ESG factors as part of the investment
process does not mean that the Fund pursues a specific “impact” or “sustainable”
investment strategy.
The
Portfolio Manager believes that in-depth, strategic and financial research is
the key to identifying undervalued companies and seeks to identify companies
with the following characteristics: stock prices undervalued relative to his
view of long-term cash flow growth potential; industry leadership; potential for
significant improvement in the company’s business; and/or strong financial
characteristics, corporate governance practices, and management track
record.
The Fund
seeks to reduce risk by diversifying among many industries. At times, the
Portfolio Manager may emphasize certain sectors that he believes will benefit
from market or economic trends. Although the Fund has the flexibility to invest
a significant portion of its assets in one country or region, it generally
intends to invest across a broad range of countries and geographical
regions.
The Fund may
invest in companies of any market capitalization. Equity securities in which the
Fund may invest include common and preferred stocks, convertible securities,
rights and warrants to purchase common stock, depositary receipts and China
A-shares using the “connect programs” of local stock exchanges in China, such as
the Shanghai-Hong Kong Stock Connect Program, the Shenzhen-Hong Kong Stock
Connect Program or other similar programs. The Fund may invest in exchange
traded funds (“ETFs”). The Fund may also invest in foreign real estate
companies.
The Fund may
invest in restricted securities, including private placements, which are
securities that are subject to legal restrictions on their sale and may not be
sold to the public unless registered under the applicable securities law or
pursuant to an applicable exemption. The Fund may also invest in private
companies, including companies that have not yet issued securities publicly in
an initial public offering.
The
Portfolio Manager follows a disciplined selling strategy and may sell a security
when it reaches a target price, if a company’s business fails to perform as
expected, or when other opportunities appear more attractive.
The Fund
will not change its strategy of normally investing at least 80% of its net
assets, plus the amount of any borrowings for investment purposes, in equity
securities of issuers in emerging market countries, without providing
shareholders at least 60 days’ notice. This test is applied at the time the Fund
invests; later percentage changes caused by a change in Fund assets, market
values or company circumstances will not require the Fund to dispose of a
holding.
PRINCIPAL INVESTMENT
RISKS
Most of the
Fund’s performance depends on what happens in international stock markets, the
Portfolio Manager’s evaluation of those developments, and the success of the
Portfolio Manager in implementing the Fund’s investment strategies. The markets’
behavior can be difficult to predict, particularly in the short term. There can
be no guarantee that the Fund will achieve its goal. The Fund may take temporary
defensive and cash management positions; to the extent it does, it will not be
pursuing its principal investment strategies.
The actual
risk exposure taken by the Fund in its investment program will vary over time,
depending on various factors including the Portfolio Manager’s evaluation of
issuer, political, regulatory, market, or economic developments. There can be no
guarantee that the Portfolio Manager will be successful in his attempts to
manage the risk exposure of the Fund or will appropriately evaluate or weigh the
multiple factors involved in investment decisions, including issuer, market
and/or instrument-specific analysis, valuation and ESG factors.
The Fund is a mutual fund, not a bank deposit, and is not
guaranteed or insured by the Federal Deposit Insurance Corporation or any other
government agency. The value of your investment may fall, sometimes sharply,
and you could lose money by investing in the
Fund.
Each of the
following risks, which are described in alphabetical order and not in order of
any presumed importance, can significantly affect the Fund’s performance. The
relative importance of, or potential exposure as a result of, each of these
risks will vary based on market and other investment-specific
considerations.
Risks of
Investments in China A-shares through Stock Connect Programs. There are
significant risks inherent in investing in China A-shares through “Connect
Programs” of local stock exchanges in China, namely the Shanghai-Hong Kong Stock
Connect Program (“Shanghai Connect Program”) and the Shenzhen-Hong Kong Stock
Connect Program (“Shenzhen Connect Program”). The Chinese investment and banking
systems are materially different in nature from many developed markets, which
exposes investors to risks that are different from those in the U.S. The Connect
Programs are subject to daily quota limitations, and an
10
Emerging Markets Equity Fund
investor
cannot purchase and sell the same security on the same trading day, which may
restrict the Fund’s ability to invest in China A-shares through the Connect
Programs and to enter into or exit trades on a timely basis. If either one or
both markets involved in a particular Connect Program are closed on a U.S.
trading day, the Fund may not be able to dispose of its China A-shares in a
timely manner under such Connect Program, which could adversely affect the
Fund’s performance. Only certain China A-shares are eligible to be accessed
through the Connect Programs. Such securities may lose their eligibility at any
time, in which case they could be sold but could no longer be purchased through
the Connect Programs.
Further
regulations or restrictions, such as limitations on redemptions or suspension of
trading, which Chinese regulators have used in the past, may adversely impact
the Connect Programs and may increase volatility. The future impact of this
integration of Chinese and foreign markets is unclear and the actual effect on
the market for trading China A-shares with the introduction of large numbers of
foreign investors is unknown.
Convertible
Securities Risk. The value of a convertible security, which is a form of
hybrid security (i.e., a security with both debt and equity characteristics),
typically increases or decreases with the price of the underlying common stock.
In general, a convertible security is subject to the market risks of stocks when
the underlying stock’s price is high relative to the conversion price and is
subject to the market risks of debt securities when the underlying stock’s price
is low relative to the conversion price. The general market risks of debt
securities that are common to convertible securities include, but are not
limited to, interest rate risk and credit risk -- that is, the value of
convertible securities will move in the direction opposite to movements in
interest rates; they are subject to the risk that the issuer will not be able to
pay interest or dividends when due; and their market value may change based on
changes in the issuer’s credit rating or the market’s perception of the issuer’s
creditworthiness. Many convertible securities have credit ratings that are below
investment grade and are subject to the same risks as an investment in
lower-rated debt securities (commonly known as “junk bonds”). Lower-rated debt
securities may fluctuate more widely in price and yield than investment grade
debt securities and may fall in price during times when the economy is weak or
is expected to become weak. To the extent the Fund invests in convertible
securities issued by small- or mid-cap companies, it will be subject to the
risks of investing in such companies.
Currency
Risk. Currency risk is the risk that foreign currencies will decline in
value relative to the U.S. dollar. To the extent that the Fund invests in
securities or other instruments denominated in or indexed to foreign currencies,
changes in currency exchange rates could adversely impact investment gains or
add to investment losses. Currency exchange rates may fluctuate significantly
over short periods of time and can be affected unpredictably by various factors,
including investor perception and changes in interest rates; intervention, or
failure to intervene, by U.S. or foreign governments, central banks, or
supranational entities; or by currency controls or political developments in the
U.S. or abroad.
Depositary
Receipts Risk. Depositary receipts are certificates issued by a financial
institution evidencing ownership of underlying foreign securities. Depositary
receipts involve many of the same risks of investing directly in the underlying
foreign securities. Depositary receipts are subject to the risk of fluctuation
in the currency exchange rate if, as is often the case, the underlying foreign
securities are denominated in foreign currency, and there may be an imperfect
correlation between the market value of depositary receipts and the underlying
foreign securities.
Foreign
and Emerging Market Risk. Foreign securities involve risks in addition to
those associated with comparable U.S. securities. Additional risks include
exposure to less developed or less efficient trading markets; social, political,
diplomatic, or economic instability; trade barriers and other protectionist
trade policies (including those of the U.S.); imposition of economic sanctions
against a particular country or countries, organizations, companies, entities
and/or individuals; significant government involvement in an economy and/or
market structure; fluctuations in foreign currencies or currency redenomination;
potential for default on sovereign debt; nationalization or expropriation of
assets; settlement, custodial or other operational risks; higher transaction
costs; confiscatory withholding or other taxes; and less stringent auditing and
accounting, corporate disclosure, governance, and legal standards. As a result,
foreign securities may fluctuate more widely in price, and may also be less
liquid, than comparable U.S. securities. Regardless of where a company is
organized or its stock is traded, its performance may be affected significantly
by events in regions from which it derives its profits or in which it conducts
significant operations.
Investing in
emerging market countries involves risks in addition to and greater than those
generally associated with investing in more developed foreign countries. The
governments of emerging market countries may be more unstable and more likely to
impose capital controls, nationalize a company or industry, place restrictions
on foreign ownership and on withdrawing sale proceeds of securities from the
country, intervene in the financial markets, and/or impose burdensome taxes that
could adversely affect security prices. To the extent a foreign security is
denominated in U.S. dollars, there is also the risk that a foreign government
will not let U.S. dollar-denominated assets leave the country. In addition, the
economies of emerging market countries may be dependent on relatively few
industries that are more susceptible to local and global changes. Emerging
market
11
Emerging Markets Equity Fund
countries
may also have less developed legal and accounting systems, and their legal
systems may deal with issuer bankruptcies and defaults differently than U.S. law
would. Securities markets in emerging market countries are also relatively small
and have substantially lower trading volumes. Securities of issuers in emerging
market countries may be more volatile and less liquid than securities of issuers
in foreign countries with more developed economies or markets and the situation
may require that the Fund fair value its holdings in those countries.
Securities
of issuers traded on foreign exchanges may be suspended, either by the issuers
themselves, by an exchange, or by governmental authorities. The likelihood of
such suspensions may be higher for securities of issuers in emerging or
less-developed market countries than in countries with more developed markets.
Trading suspensions may be applied from time to time to the securities of
individual issuers for reasons specific to that issuer, or may be applied
broadly by exchanges or governmental authorities in response to market events.
Suspensions may last for significant periods of time, during which trading in
the securities and in instruments that reference the securities, such as
derivative instruments, may be halted. In the event that the Fund holds material
positions in such suspended securities or instruments, the Fund’s ability to
liquidate its positions or provide liquidity to investors may be compromised and
the Fund could incur significant losses.
From time to
time, based on market or economic conditions, the Fund may invest a significant
portion of its assets in one country or geographic region. If the Fund does so,
there is a greater risk that economic, political, regulatory, diplomatic, social
and environmental conditions in that particular country or geographic region may
have a significant impact on the Fund’s performance and that the Fund’s
performance will be more volatile than the performance of more geographically
diversified funds.
Most
economies in the Greater China region are generally considered emerging markets
and carry the risks associated with emerging markets, as well as risks
particular to the region. Events in any one country within the region may impact
other countries in the region or the Greater China region as a whole. The
economies, industries, and securities and currency markets of the Greater China
region may be adversely affected by slow economic activity worldwide,
protectionist trade policies, dependence on exports and international trade,
currency devaluations and other currency exchange rate fluctuations,
restrictions on monetary repatriation, increasing competition from Asia’s
low-cost emerging economies, environmental events and natural disasters that may
occur in the Greater China region, and military conflicts either in response to
social unrest or with other countries.
Growth
Stock Risk. Because the prices of most growth stocks are based on future
expectations, these stocks tend to be more sensitive than value stocks to bad
economic news and negative earnings surprises. When these expectations are not
met or decrease, the prices of these stocks may decline, sometimes sharply, even
if earnings showed an absolute increase. Bad economic news or changing investor
perceptions may adversely affect growth stocks across several sectors and
industries simultaneously.
Issuer-Specific
Risk. An individual security may be more volatile, and may perform
differently, than the market as a whole.
Liquidity
Risk. From time to time, the trading market for a particular investment in
which the Fund invests, or a particular type of instrument in which the Fund is
invested, may become less liquid or even illiquid. Illiquid investments
frequently can be more difficult to purchase or sell at an advantageous price or
time, and there is a greater risk that the investments may not be sold for the
price at which the Fund is carrying them. Certain investments that were liquid
when the Fund purchased them may become illiquid, sometimes abruptly.
Additionally, market closures due to holidays or other factors may render a
security or group of securities (e.g., securities tied to a particular country
or geographic region) illiquid for a period of time. An inability to sell a
portfolio position can adversely affect the Fund’s value or prevent the Fund
from being able to take advantage of other investment opportunities. Market
prices for such securities or other investments may be volatile. During periods
of substantial market volatility, an investment or even an entire market segment
may become illiquid, sometimes abruptly, which can adversely affect the Fund’s
ability to limit losses.
Unexpected
episodes of illiquidity, including due to market or political factors,
instrument or issuer-specific factors and/or unanticipated outflows or other
factors, may limit the Fund’s ability to pay redemption proceeds within the
allowable time period. To meet redemption requests during periods of
illiquidity, the Fund may be forced to sell securities at an unfavorable time
and/or under unfavorable conditions.
Market
Capitalization Risk. To the extent the Fund invests in securities of small-,
mid-, or large-cap companies, it takes on the associated risks. At times, any of
these market capitalizations may be out of favor with investors. Compared to
small- and mid-cap companies, large-cap companies may be unable to respond as
quickly to changes and opportunities and may grow at a slower rate. Compared to
large-cap companies, small- and mid-cap companies may depend on a more limited
management group, may have a shorter history of operations, less publicly
available information, less stable earnings, and limited product lines, markets
or financial resources. The securities of small- and mid-cap companies are often
more volatile, which at times can be rapid and
12
Emerging Markets Equity Fund
unpredictable,
and less liquid than the securities of larger companies and may be more affected
than other types of securities by the underperformance of a sector, during
market downturns, or by adverse publicity and investor perceptions.
Market
Volatility Risk. Markets may be volatile and values of individual securities
and other investments, including those of a particular type, may decline
significantly in response to adverse issuer, political, regulatory, market,
economic or other developments that may cause broad changes in market value,
public perceptions concerning these developments, and adverse investor sentiment
or publicity. Geopolitical and other risks, including environmental and public
health risks may add to instability in world economies and markets generally.
Changes in value may be temporary or may last for extended periods. If the Fund
sells a portfolio position before it reaches its market peak, it may miss out on
opportunities for better performance.
Other
Investment Company Risk. To the extent the Fund invests in other investment
companies, including money market funds and exchange-traded funds (ETFs), its
performance will be affected by the performance of those other investment
companies. Investments in other investment companies are subject to the risks of
the other investment companies’ investments, as well as to the other investment
companies’ expenses.
An ETF may
trade in the secondary market at a price below the value of its underlying
portfolio, may not be liquid and may be halted by the listing exchange. An
actively managed ETF’s performance will reflect its adviser’s ability to make
investment decisions that are suited to achieving the ETF’s investment
objectives. A passively managed ETF may not replicate the performance of the
index it intends to track.
Preferred
Securities Risk. Preferred securities, which are a form of hybrid security
(i.e., a security with both debt and equity characteristics), may pay fixed or
adjustable rates of return. Preferred securities are subject to issuer-specific
and market risks applicable generally to equity securities, however, unlike
common stocks, participation in the growth of an issuer may be limited.
Distributions on preferred securities are generally payable at the discretion of
the issuer’s board of directors and after the company makes required payments to
holders of its debt securities. For this reason, preferred securities are
subject to greater credit, interest, and liquidation risk than debt securities,
and the value of preferred securities will usually react more strongly than debt
securities to actual or perceived changes in the company’s financial condition
or prospects. Preferred securities of smaller companies may be more vulnerable
to adverse developments than preferred securities of larger companies. Preferred
securities may be less liquid than common stocks.
Private
Companies and Pre-IPO Investments Risk. Investments in private companies,
including companies that have not yet issued securities publicly in an initial
public offering (“IPO”) (“pre-IPO shares”), involve greater risks than
investments in securities of companies that have traded publicly on an exchange
for extended periods of time. Investments in these companies are generally less
liquid than investments in securities issued by public companies and may be
difficult for the Fund to value. Compared to public companies, private companies
may have a more limited management group and limited operating histories with
narrower, less established product lines and smaller market shares, which may
cause them to be more vulnerable to competitors’ actions, market conditions and
consumer sentiment with respect to their products or services, as well as
general economic downturns. In addition, private companies may have limited
financial resources and may be unable to meet their obligations. The Fund may
only have limited access to a private company’s actual financial results and
there is no assurance that the information obtained by the Fund is reliable.
These companies may not ever issue shares in an IPO and a liquid market for
their shares may never develop, which could adversely affect the Fund’s
liquidity. If the company does issue shares in an IPO, IPOs are risky and
volatile and may cause the value of the Fund’s investment to decrease
significantly. Moreover, because securities issued by private companies are
generally not freely or publicly tradable, the Fund may not have the opportunity
to purchase, or the ability to sell, these securities in the amounts, or at the
prices, the Fund desires.
Private
Placements and Other Restricted Securities Risk. Private placements and
other restricted securities, including securities for which Fund management has
material non-public information, are securities that are subject to legal and/or
contractual restrictions on their sales. These securities may not be sold to the
public unless certain conditions are met, which may include registration under
the applicable securities laws. As a result of the absence of a public trading
market, the prices of these securities may be more difficult to determine than
publicly traded securities and these securities may involve heightened risk as
compared to investments in securities of publicly traded companies. Private
placements and other restricted securities may be illiquid, and it frequently
can be difficult to sell them at a time when it may otherwise be desirable to do
so or the Fund may be able to sell them only at prices that are less than what
the Fund regards as their fair market value. Transaction costs may be higher for
these securities. In addition, the Fund may get only limited information about
the issuer of a private placement or other restricted security.
Recent
Market Conditions. Both U.S. and international markets have experienced
significant volatility in recent months and years. As a result of such
volatility, investment returns may fluctuate significantly. National economies
are substantially
13
Emerging Markets Equity Fund
interconnected,
as are global financial markets, which creates the possibility that conditions
in one country or region might adversely impact issuers in a different country
or region. However, the interconnectedness of economies and/or markets may be
diminishing, which may impact such economies and markets in ways that cannot be
foreseen at this time.
Although
interest rates were unusually low in recent years in the U.S. and abroad,
recently, the Federal Reserve and certain foreign central banks raised interest
rates as part of their efforts to address rising inflation. It is difficult to
accurately predict the pace at which interest rates might increase, the timing,
frequency or magnitude of any such increases in interest rates, or when such
increases might stop. Additionally, various economic and political factors could
cause the Federal Reserve or other foreign central banks to change their
approach in the future and such actions may result in an economic slowdown both
in the U.S. and abroad. Unexpected changes in interest rates could lead to
market volatility or reduce liquidity in certain sectors of the market.
Deteriorating economic fundamentals may, in turn, increase the risk of default
or insolvency of particular issuers, negatively impact market value, cause
credit spreads to widen, and reduce bank balance sheets. Any of these could
cause an increase in market volatility, or reduce liquidity across various
markets or decrease confidence in the markets.
Some
countries, including the U.S., have adopted more protectionist trade policies.
Slowing global economic growth, the rise in protectionist trade policies,
changes to some major international trade agreements, risks associated with the
trade agreement between the United Kingdom and the European Union, and the risks
associated with trade negotiations between the U.S. and China, could affect the
economies of many nations in ways that cannot necessarily be foreseen at the
present time. In addition, the current strength of the U.S. dollar may decrease
foreign demand for U.S. assets, which could have a negative impact on certain
issuers and/or industries.
Regulators
in the U.S. have proposed and adopted a number of changes to regulations
involving the markets and issuers, some of which apply to the Fund. The full
effect of various newly adopted regulations is not currently known.
Additionally, it is not currently known whether any of the proposed regulations
will be adopted. However, due to the scope of regulations being proposed and
adopted, certain of these changes to regulation could limit the Fund’s ability
to pursue its investment strategies or make certain investments, may make it
more costly for it to operate, or adversely impact performance.
Tensions,
war, or open conflict between nations, such as between Russia and Ukraine, in
the Middle East, or in eastern Asia could affect the economies of many nations,
including the United States. The duration of ongoing hostilities and any
sanctions and related events cannot be predicted. Those events present material
uncertainty and risk with respect to markets globally and the performance of the
Fund and its investments or operations could be negatively impacted.
High public
debt in the U.S. and other countries creates ongoing systemic and market risks
and policymaking uncertainty. There is no assurance that the U.S. Congress will
act to raise the nation’s debt ceiling; a failure to do so could cause market
turmoil and substantial investment risks that cannot now be fully predicted.
Unexpected political, regulatory and diplomatic events within the U.S. and
abroad may affect investor and consumer confidence and may adversely impact
financial markets and the broader economy.
There is
widespread concern about the potential effects of global climate change on
property and security values. Certain issuers, industries and regions may be
adversely affected by the impact of climate change in ways that cannot be
foreseen. The impact of legislation, regulation and international accords
related to climate change may negatively impact certain issuers and/or
industries.
Redemption
Risk. The Fund may experience periods of large or frequent redemptions that
could cause the Fund to sell assets at inopportune times, which could have a
negative impact on the Fund’s overall liquidity, or at a loss or depressed
value. Redemption risk is greater to the extent that one or more investors or
intermediaries control a large percentage of investments in the Fund and the
risk is heightened during periods of declining or illiquid markets. Large
redemptions could hurt the Fund’s performance, increase transaction costs, and
create adverse tax consequences.
REITs and
Other Real Estate Companies Risk. REITs and other real estate company
securities are subject to risks similar to those of direct investments in real
estate and the real estate industry in general, including, among other risks:
general and local economic conditions; changes in interest rates; declines in
property values; defaults by mortgagors or other borrowers and tenants;
increases in property taxes and other operating expenses; overbuilding in their
sector of the real estate market; fluctuations in rental income; lack of
availability of mortgage funds or financing; extended vacancies of properties,
especially during economic downturns; changes in tax and regulatory
requirements; losses due to environmental liabilities; casualty or condemnation
losses; changing social trends regarding working arrangements; or other
economic, social, political, or regulatory matters affecting the real estate
industry. REITs also are dependent upon the skills of their managers and are
subject to heavy cash flow dependency or self-liquidation.
14
Emerging Markets Equity Fund
Regardless
of where a REIT is organized or traded, its performance may be affected
significantly by events in the region where its properties are located. Domestic
REITs could be adversely affected by failure to qualify for tax-free
“pass-through” of distributed net investment income and net realized gains under
the Internal Revenue Code of 1986, as amended, (“Code”) or to maintain their
exemption from registration under the Investment Company Act of 1940, as
amended. The value of REIT common shares may decline when interest rates rise.
REITs and other real estate company securities tend to be small- to mid-cap
securities and are subject to the risks of investing in small- to mid-cap
securities.
Sector
Risk. From time to time, based on market or economic conditions, the Fund
may have significant positions in one or more sectors of the market. To the
extent the Fund invests more heavily in particular sectors, its performance will
be especially sensitive to developments that significantly affect those sectors.
Individual sectors or sub-sectors may be more volatile, and may perform
differently, than the broader market. The industries that constitute a sector
may all react in the same way to economic, political or regulatory
events.
Securities
Lending Risk. Securities lending involves a possible delay in recovery of
the loaned securities or a possible loss of rights in the collateral should the
borrower fail financially. The Fund could also lose money if the value of the
collateral decreases.
Value
Stock Risk. Value stocks may remain undervalued for extended periods of
time, may decrease in value during a given period, may not ever realize what the
portfolio management team believes to be their full value, or the portfolio
management team’s assumptions about intrinsic value or potential for
appreciation may be incorrect. This may happen, among other reasons, because of
a failure to anticipate which stocks or industries would benefit from changing
market or economic conditions or investor preferences.
Risks of
Investing in Variable Interest Entities. For purposes of raising capital
offshore on exchanges outside of People’s Republic of China (PRC), including on
U.S. exchanges, many PRC-based operating companies are structured as entities
commonly-referred to as variable interest entities (“VIEs”). In a typical VIE
structure, the onshore PRC-based operating company is the VIE and establishes an
entity, which is typically offshore in a foreign jurisdiction, such as the
Cayman Islands. The offshore entity lists on a foreign exchange and enters into
contractual arrangements with the VIE. This structure enables PRC companies in
which the PRC government restricts foreign ownership to raise capital from
foreign investors. While the offshore entity has no legal equity ownership of
the VIE, its contractual arrangements with the VIE permit the offshore entity to
consolidate the VIE’s financial statements with its own for Financial Accounting
Standards Board accounting purposes and provide for economic exposure to the
performance of the underlying onshore PRC operating company. Therefore, an
investor in the listed offshore entity, such as the Fund, will have exposure to
the onshore PRC-based operating company only through its contractual
arrangements with the VIE and has no legal ownership in the VIE. Furthermore,
because the offshore entity only has specific rights provided for in these
contractual arrangements with the VIE, its abilities to control the activities
of the VIE are limited and the VIE may engage in activities that negatively
impact investment value. While the VIE structure has been widely adopted, it is
not formally or legally recognized under PRC law and therefore there is a risk
that the PRC government could restrict the effectiveness of such structures or
negatively impact the VIE’s contractual arrangements with the listed offshore
entity by making them invalid under PRC laws. If these contracts were found to
be unenforceable under PRC law, investors in the listed offshore entity, such as
the Fund, may suffer significant losses with little or no recourse available. If
the PRC government determines that the contractual agreements involving VIE
structures do not comply with PRC law and regulations, including those related
to restrictions on foreign ownership, it could subject a VIE to numerous
sanctions such as penalties, revocation of business and operating licenses,
invalidate or terminate contractual arrangements and/or forfeiture or
non-recognition of ownership interest.
Warrants
and Rights Risk. Warrants and rights do not carry with them the right to
dividends or voting rights with respect to the securities that they entitle
their holder to purchase, and they do not represent any rights in the assets of
the issuer. As a result, warrants and rights may be considered more speculative
than certain other types of investments. In addition, the value of a warrant or
right does not necessarily change with the value of the underlying securities.
The Fund could lose the value of a warrant or right if the right to subscribe to
additional shares is not exercised prior to the warrant’s or right’s expiration
date. The market for warrants and rights may be very limited and there may at
times not be a liquid secondary market for warrants and rights.
A summary
of the Fund’s additional principal investment risks is as
follows:
Risk of
Increase in Expenses. A decline in the Fund’s average net assets during the
current fiscal year due to market volatility or other factors could cause the
Fund’s expenses for the current fiscal year to be higher than the expense
information presented in “Fees and Expenses.”
Operational
and Cybersecurity Risk. The Fund and its service providers, and your ability
to transact with the Fund, may be negatively impacted due to operational matters
arising from, among other problems, human errors, systems and
technology
15
Emerging Markets Equity Fund
disruptions
or failures, or cybersecurity incidents. Cybersecurity incidents may allow an
unauthorized party to gain access to fund assets, customer data, or proprietary
information, or cause the Fund or its service providers, as well as the
securities trading venues and their service providers, to suffer data corruption
or lose operational functionality. Cybersecurity incidents can result from
deliberate attacks or unintentional events. It is not possible for the Manager
or the other Fund service providers to identify all of the cybersecurity or
other operational risks that may affect the Fund or to develop processes and
controls to completely eliminate or mitigate their occurrence or effects. Most
issuers in which the Fund invests are heavily dependent on computers for data
storage and operations, and require ready access to the internet to conduct
their business. Thus, cybersecurity incidents could also affect issuers of
securities in which the Fund invests, leading to significant loss of
value.
Risk
Management. Risk is an essential part of investing. No risk management
program can eliminate the Fund’s exposure to adverse events; at best, it may
only reduce the possibility that the Fund will be affected by such events, and
especially those risks that are not intrinsic to the Fund’s investment program.
The Fund could experience losses if judgments about risk prove to be
incorrect.
Valuation
Risk. The Fund may not be able to sell an investment at the price at which
the Fund has valued the investment. Such differences could be significant,
particularly for illiquid securities and securities that trade in relatively
thin markets and/or markets that experience extreme volatility. If market or
other conditions make it difficult to value an investment, the Fund may be
required to value such investments using more subjective methods, known as fair
value methodologies. Using fair value methodologies to price investments may
result in a value that is different from an investment’s most recent price and
from the prices used by other funds to calculate their NAVs. The Fund uses
pricing services to provide values for certain securities and there is no
assurance that the Fund will be able to sell an investment at the price
established by such pricing services. The Fund’s ability to value its
investments in an accurate and timely manner may be impacted by technological
issues and/or errors by third party service providers, such as pricing services
or accounting agents.
PERFORMANCE
The
following bar chart and table provide an indication of the risks of investing in
the Fund. The bar chart
shows how the Fund’s performance has varied from year to year. The table below
the bar chart shows what the returns would equal if you averaged out actual
performance over various lengths of time and compares the returns with the
returns of a broad-based market index. The index, which
is described in “Descriptions of Indices” in the prospectus, has characteristics
relevant to the Fund’s investment strategy.
The following
performance prior to March 15, 2013, is that of the Fund’s Institutional
Class. Because Institutional Class has higher expenses than Class R6, its
performance typically would have been lower than that of Class
R6.
Returns
would have been lower/higher if the Manager had not reimbursed/recouped certain
expenses and/or waived a portion of the investment management fees during
certain of the periods shown.
16
Emerging Markets Equity Fund
Past performance (before and
after taxes) is not a prediction of future results. Visit
www.nb.com
or call 800-366-6264 for
updated performance information.
year-by-year % Returns as of 12/31 each
year
Years |
Returns |
2013 |
1.12% |
2014 |
-2.77% |
2015 |
-11.49% |
2016 |
9.32% |
2017 |
41.69% |
2018 |
-17.25% |
2019 |
19.06% |
2020 |
13.45% |
2021 |
-3.19% |
2022 |
-23.77% |
Best
quarter: Q2 2020 18.05%
Worst
quarter: Q1 2020 -23.70%
Year to Date performance as
of: 9/30/2023 -0.83%
average annual total % returns as of
12/31/22
Emerging Markets Equity
Fund |
|
1
Year |
|
5
Years |
|
10
Years |
Return
Before Taxes |
|
-23.77 |
|
-3.78 |
|
1.06 |
Return
After Taxes on Distributions |
|
-23.88 |
|
-4.03 |
|
0.85 |
Return
After Taxes on Distributions and Sale of Fund Shares |
|
-14.00 |
|
-2.80 |
|
0.83 |
MSCI
Emerging Markets Index (Net) (reflects reinvested dividends net of
withholding taxes, but reflects no deduction for fees, expenses or
taxes) |
|
-20.09 |
|
-1.40 |
|
1.44 |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local
taxes. Actual after-tax returns depend on an investor’s
tax situation and may differ from those shown. After-tax returns are not
relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. Return After Taxes on Distributions and Sale of
Fund Shares may be higher than other returns for the same period due to a tax
benefit of realizing a capital loss upon the sale of Fund
shares.
INVESTMENT
MANAGER
Neuberger
Berman Investment Advisers LLC (“Manager”) is the Fund’s investment
manager.
PORTFOLIO
MANAGER
The Fund is
managed by Conrad Saldanha, CFA (Managing Director of the Manager). He has
managed the Fund since its inception in 2008.
Buying
and Selling Shares
You may
purchase, redeem (sell) or exchange shares of the Fund on any day the New York
Stock Exchange is open, at the Fund’s net asset value per share next determined
after your order is received in proper form. Shares of the Fund generally are
available only through certain investment providers, such as banks, brokerage
firms, retirement plan administrators, and financial advisers. Contact any
investment provider authorized to sell the Fund’s shares. See “Maintaining Your
Account” in the prospectus for eligibility requirements for purchases of Class
R6 shares.
For certain
institutional investors, shares of the Fund may be available directly from
Neuberger Berman BD LLC by regular, first class mail (Neuberger Berman Funds,
P.O. Box 219189, Kansas City, MO 64121-9189), by express delivery, registered
mail, or certified mail (Neuberger Berman Funds, 430 West 7th Street,
Suite 219189, Kansas City, MO 64105-1407), or by wire, fax,
17
Emerging Markets Equity Fund
telephone,
or exchange (call 800-366-6264 for instructions). See “Maintaining Your Account”
in the prospectus for eligibility requirements for direct purchases of shares
and for instructions on buying and redeeming (selling) shares
directly.
The Fund
does not impose minimum purchase requirements for Class R6 shares. However, you
should contact your investment provider to determine whether it imposes minimum
purchase requirements.
Tax
Information
Unless you
invest in the Fund through a tax-advantaged retirement plan or account or are a
tax-exempt investor, you will be subject to tax on Fund distributions to you of
ordinary income and/or net capital gains. Those distributions generally are not
taxable to such a plan or account or a tax-exempt investor, although withdrawals
from certain retirement plans and accounts generally are subject to federal
income tax.
Payments
to Investment Providers and Other Financial Intermediaries
If you
purchase shares of another class of the Fund through an investment provider or
other financial intermediary, such as a bank, brokerage firm, workplace
retirement program, or financial adviser (who may be affiliated with Neuberger
Berman), the Fund and/or Neuberger Berman BD LLC and/or its affiliates may pay
the intermediary for the sale of shares of those other classes of the Fund and
related services. These payments may create a conflict of interest by
influencing the investment provider or other financial intermediary and its
employees to recommend the Fund or those other classes of the Fund over another
investment. Neuberger Berman does not provide ongoing payments to third
parties for any record-keeping or administrative services in connection with
investments in Class R6. To the extent the Fund makes such payments with
respect to another class, they can come only out of the assets of that other
class.
18
Emerging Markets Equity Fund
Neuberger Berman Genesis Fund
Class R6
Shares (NRGSX)
GOAL
The Fund
seeks growth of capital.
Fees and
Expenses
These tables
describe the fees and expenses that you may pay if you buy, hold or sell shares
of the Fund. You may pay other fees, such as brokerage commissions and other
fees to financial intermediaries, which are not reflected in the table and
example below.
Shareholder Fees (fees paid
directly from your investment) |
|
None |
Annual Fund Operating Expenses
(expenses that you pay each year as a % of the value of your
investment) |
|
|
Management
fees |
|
0.71 |
Distribution
and/or shareholder service (12b-1) fees |
|
None |
Other
expenses |
|
0.03 |
Total
annual operating expenses |
|
0.74 |
Expense
Example
The expense
example can help you compare costs among mutual funds. The example assumes that
you invested $10,000 for the periods shown, that you redeemed all of your shares
at the end of those periods, that the Fund earned a hypothetical 5% total return
each year, and that the Fund’s expenses were those in the table. Actual
performance and expenses may be higher or lower.
|
|
1
Year |
|
3
Years |
|
5
Years |
|
10
Years |
Class
R6 |
|
$76 |
|
$237 |
|
$411 |
|
$918 |
Portfolio
Turnover
The Fund
pays transaction costs, such as commissions, when it buys and sells securities
(or “turns over” its portfolio). A higher portfolio turnover rate may indicate
higher transaction costs and may result in higher taxes when Fund shares are
held in a taxable account. These costs, which are not reflected in annual
operating expenses or in the example, affect the Fund’s performance. During the
most recent fiscal year, the Fund’s portfolio turnover rate was 17% of the average
value of its portfolio.
Principal Investment
Strategies
To pursue
its goal, the Fund invests mainly in common stocks of small-capitalization
companies, which it defines as those with a total market capitalization within
the market capitalization range of companies in the Russell 2000®
Index at the time of initial purchase. The market capitalization of the
companies in the Fund’s portfolio and the Russell 2000 Index changes over time
and the Fund may continue to hold or add to a position in a company after its
market capitalization has moved outside the range of the Russell 2000
Index.
The Fund
seeks to reduce risk by diversifying among many companies and industries. At
times, the Portfolio Managers may emphasize certain sectors that they believe
will benefit from market or economic trends.
Although the
Fund invests primarily in domestic stocks, it may also invest in stocks of
foreign companies.
The
Portfolio Managers generally look for what they believe to be undervalued
companies whose current market shares and balance sheets are strong. In
addition, the Portfolio Managers tend to focus on companies whose financial
strength is largely based on existing business lines rather than on projected
growth. Factors in identifying these firms may include: a history of
above-average returns; an established market niche; circumstances that would
make it difficult for new competitors to enter the market; the ability to
finance their own growth; and a belief that the company has sound future
business prospects. This approach is designed to let the Fund benefit from
potential increases in stock prices, while endeavoring to limit the risks
typically associated with small-cap stocks.
As part of
their fundamental investment analysis the Portfolio Managers consider
Environmental, Social and Governance (ESG) factors they believe are financially
material to individual investments, where applicable, as described below. While
this analysis is inherently subjective and may be informed by both internally
generated and third-party metrics, data and other information, the
Portfolio
Managers believe that the consideration of financially material ESG factors,
alongside traditional financial metrics, may enhance the Fund’s overall
investment process. The consideration of ESG factors does not apply to certain
instruments, such as certain derivative instruments, other registered investment
companies, cash and cash equivalents. The consideration of ESG factors as part
of the investment process does not mean that the Fund pursues a specific
“impact” or “sustainable” investment strategy.
The
Portfolio Managers follow a disciplined selling strategy and may sell a security
when it reaches a target price, if a company’s business fails to perform as
expected, or when other opportunities appear more attractive.
PRINCIPAL INVESTMENT
RISKS
Most of the
Fund’s performance depends on what happens in the stock market, the Portfolio
Managers’ evaluation of those developments, and the success of the Portfolio
Managers in implementing the Fund’s investment strategies. The market’s behavior
can be difficult to predict, particularly in the short term. There can be no
guarantee that the Fund will achieve its goal. The Fund may take temporary
defensive and cash management positions; to the extent it does, it will not be
pursuing its principal investment strategies.
The actual
risk exposure taken by the Fund in its investment program will vary over time,
depending on various factors including the Portfolio Managers’ evaluation of
issuer, political, regulatory, market, or economic developments. There can be no
guarantee that the Portfolio Managers will be successful in their attempts to
manage the risk exposure of the Fund or will appropriately evaluate or weigh the
multiple factors involved in investment decisions, including issuer, market
and/or instrument-specific analysis, valuation and ESG factors.
The Fund is a mutual fund, not a bank deposit, and is not
guaranteed or insured by the Federal Deposit Insurance Corporation or any other
government agency. The value of your investment may fall, sometimes sharply,
and you could lose money by investing in the
Fund.
Each of the
following risks, which are described in alphabetical order and not in order of
any presumed importance, can significantly affect the Fund’s performance. The
relative importance of, or potential exposure as a result of, each of these
risks will vary based on market and other investment-specific
considerations.
Foreign
Risk. Foreign securities involve risks in addition to those associated with
comparable U.S. securities. Additional risks include exposure to less developed
or less efficient trading markets; social, political, diplomatic, or economic
instability; trade barriers and other protectionist trade policies (including
those of the U.S.); imposition of economic sanctions against a particular
country or countries, organizations, companies, entities and/or individuals;
significant government involvement in an economy and/or market structure;
fluctuations in foreign currencies or currency redenomination; potential for
default on sovereign debt; nationalization or expropriation of assets;
settlement, custodial or other operational risks; higher transaction costs;
confiscatory withholding or other taxes; and less stringent auditing and
accounting, corporate disclosure, governance, and legal standards. As a result,
foreign securities may fluctuate more widely in price, and may also be less
liquid, than comparable U.S. securities. World markets, or those in a particular
region, may all react in similar fashion to important economic or political
developments. In addition, foreign markets may perform differently than the U.S.
markets. The effect of economic instability on specific foreign markets or
issuers may be difficult to predict or evaluate. Regardless of where a company
is organized or its stock is traded, its performance may be affected
significantly by events in regions from which it derives its profits or in which
it conducts significant operations.
Securities
of issuers traded on foreign exchanges may be suspended, either by the issuers
themselves, by an exchange, or by governmental authorities. Trading suspensions
may be applied from time to time to the securities of individual issuers for
reasons specific to that issuer, or may be applied broadly by exchanges or
governmental authorities in response to market events. In the event that the
Fund holds material positions in such suspended securities or instruments, the
Fund’s ability to liquidate its positions or provide liquidity to investors may
be compromised and the Fund could incur significant losses.
Issuer-Specific
Risk. An individual security may be more volatile, and may perform
differently, than the market as a whole.
Market
Volatility Risk. Markets may be volatile and values of individual securities
and other investments, including those of a particular type, may decline
significantly in response to adverse issuer, political, regulatory, market,
economic or other developments that may cause broad changes in market value,
public perceptions concerning these developments, and adverse investor sentiment
or publicity. Geopolitical and other risks, including environmental and public
health risks may add to instability in world economies and markets generally.
Changes in value may be temporary or may last for extended periods. If the Fund
sells a portfolio position before it reaches its market peak, it may miss out on
opportunities for better performance.
Recent
Market Conditions. Both U.S. and international markets have experienced
significant volatility in recent months and years. As a result of such
volatility, investment returns may fluctuate significantly. National economies
are substantially interconnected, as are global financial markets, which creates
the possibility that conditions in one country or region might adversely impact
issuers in a different country or region. However, the interconnectedness of
economies and/or markets may be diminishing, which may impact such economies and
markets in ways that cannot be foreseen at this time.
Although
interest rates were unusually low in recent years in the U.S. and abroad,
recently, the Federal Reserve and certain foreign central banks raised interest
rates as part of their efforts to address rising inflation. It is difficult to
accurately predict the pace at which interest rates might increase, the timing,
frequency or magnitude of any such increases in interest rates, or when such
increases might stop. Additionally, various economic and political factors could
cause the Federal Reserve or other foreign central banks to change their
approach in the future and such actions may result in an economic slowdown both
in the U.S. and abroad. Unexpected changes in interest rates could lead to
market volatility or reduce liquidity in certain sectors of the market.
Deteriorating economic fundamentals may, in turn, increase the risk of default
or insolvency of particular issuers, negatively impact market value, cause
credit spreads to widen, and reduce bank balance sheets. Any of these could
cause an increase in market volatility, or reduce liquidity across various
markets or decrease confidence in the markets.
Some
countries, including the U.S., have adopted more protectionist trade policies.
Slowing global economic growth, the rise in protectionist trade policies,
changes to some major international trade agreements, risks associated with the
trade agreement between the United Kingdom and the European Union, and the risks
associated with trade negotiations between the U.S. and China, could affect the
economies of many nations in ways that cannot necessarily be foreseen at the
present time. In addition, the current strength of the U.S. dollar may decrease
foreign demand for U.S. assets, which could have a negative impact on certain
issuers and/or industries.
Regulators
in the U.S. have proposed and adopted a number of changes to regulations
involving the markets and issuers, some of which apply to the Fund. The full
effect of various newly adopted regulations is not currently known.
Additionally, it is not currently known whether any of the proposed regulations
will be adopted. However, due to the scope of regulations being proposed and
adopted, certain of these changes to regulation could limit the Fund’s ability
to pursue its investment strategies or make certain investments, may make it
more costly for it to operate, or adversely impact performance.
Tensions,
war, or open conflict between nations, such as between Russia and Ukraine, in
the Middle East, or in eastern Asia could affect the economies of many nations,
including the United States. The duration of ongoing hostilities and any
sanctions and related events cannot be predicted. Those events present material
uncertainty and risk with respect to markets globally and the performance of the
Fund and its investments or operations could be negatively impacted.
High public
debt in the U.S. and other countries creates ongoing systemic and market risks
and policymaking uncertainty. There is no assurance that the U.S. Congress will
act to raise the nation’s debt ceiling; a failure to do so could cause market
turmoil and substantial investment risks that cannot now be fully predicted.
Unexpected political, regulatory and diplomatic events within the U.S. and
abroad may affect investor and consumer confidence and may adversely impact
financial markets and the broader economy.
There is
widespread concern about the potential effects of global climate change on
property and security values. Certain issuers, industries and regions may be
adversely affected by the impact of climate change in ways that cannot be
foreseen. The impact of legislation, regulation and international accords
related to climate change may negatively impact certain issuers and/or
industries.
Redemption
Risk. The Fund may experience periods of large or frequent redemptions that
could cause the Fund to sell assets at inopportune times, which could have a
negative impact on the Fund’s overall liquidity, or at a loss or depressed
value. Redemption risk is greater to the extent that one or more investors or
intermediaries control a large percentage of investments in the Fund and the
risk is heightened during periods of declining or illiquid markets. Large
redemptions could hurt the Fund’s performance, increase transaction costs, and
create adverse tax consequences.
Sector
Risk. From time to time, based on market or economic conditions, the Fund
may have significant positions in one or more sectors of the market. To the
extent the Fund invests more heavily in particular sectors, its performance will
be especially sensitive to developments that significantly affect those sectors.
Individual sectors or sub-sectors may be more volatile, and may perform
differently, than the broader market. The industries that constitute a sector
may all react in the same way to economic, political or regulatory
events.
Small-
and Mid-Cap Companies Risk. At times, small- and mid-cap companies may be
out of favor with investors. Compared to larger companies, small- and mid-cap
companies may depend on a more limited management group, may have a shorter
history of operations, less publicly available information, less stable
earnings, and limited product lines, markets or financial resources.
The
securities of small- and mid-cap companies are often more volatile, which at
times can be rapid and unpredictable, and less liquid than the securities of
larger companies and may be more affected than other types of securities by the
underperformance of a sector, during market downturns, or by adverse publicity
and investor perceptions. To the extent the Fund holds securities of mid-cap
companies, the Fund will be subject to their risks.
Value
Stock Risk. Value stocks may remain undervalued for extended periods of
time, may decrease in value during a given period, may not ever realize what the
portfolio management team believes to be their full value, or the portfolio
management team’s assumptions about intrinsic value or potential for
appreciation may be incorrect. This may happen, among other reasons, because of
a failure to anticipate which stocks or industries would benefit from changing
market or economic conditions or investor preferences.
A summary
of the Fund’s additional principal investment risks is as
follows:
Risk of
Increase in Expenses. A decline in the Fund’s average net assets during the
current fiscal year due to market volatility or other factors could cause the
Fund’s expenses for the current fiscal year to be higher than the expense
information presented in “Fees and Expenses.”
Operational
and Cybersecurity Risk. The Fund and its service providers, and your ability
to transact with the Fund, may be negatively impacted due to operational matters
arising from, among other problems, human errors, systems and technology
disruptions or failures, or cybersecurity incidents. Cybersecurity incidents may
allow an unauthorized party to gain access to fund assets, customer data, or
proprietary information, or cause the Fund or its service providers, as well as
the securities trading venues and their service providers, to suffer data
corruption or lose operational functionality. Cybersecurity incidents can result
from deliberate attacks or unintentional events. It is not possible for the
Manager or the other Fund service providers to identify all of the cybersecurity
or other operational risks that may affect the Fund or to develop processes and
controls to completely eliminate or mitigate their occurrence or effects. Most
issuers in which the Fund invests are heavily dependent on computers for data
storage and operations, and require ready access to the internet to conduct
their business. Thus, cybersecurity incidents could also affect issuers of
securities in which the Fund invests, leading to significant loss of
value.
Risk
Management. Risk is an essential part of investing. No risk management
program can eliminate the Fund’s exposure to adverse events; at best, it may
only reduce the possibility that the Fund will be affected by such events, and
especially those risks that are not intrinsic to the Fund’s investment program.
The Fund could experience losses if judgments about risk prove to be
incorrect.
Valuation
Risk. The Fund may not be able to sell an investment at the price at which
the Fund has valued the investment. Such differences could be significant,
particularly for illiquid securities and securities that trade in relatively
thin markets and/or markets that experience extreme volatility. If market or
other conditions make it difficult to value an investment, the Fund may be
required to value such investments using more subjective methods, known as fair
value methodologies. Using fair value methodologies to price investments may
result in a value that is different from an investment’s most recent price and
from the prices used by other funds to calculate their NAVs. The Fund uses
pricing services to provide values for certain securities and there is no
assurance that the Fund will be able to sell an investment at the price
established by such pricing services. The Fund’s ability to value its
investments in an accurate and timely manner may be impacted by technological
issues and/or errors by third party service providers, such as pricing services
or accounting agents.
PERFORMANCE
The
following bar chart and table provide an indication of the risks of investing in
the Fund. The bar chart
shows how the Fund’s performance has varied from year to year. The table below
the bar chart shows what the returns would equal if you averaged out actual
performance over various lengths of time and compares the returns with the
returns of a broad-based market index. The index, which
is described in “Descriptions of Indices” in the prospectus, has characteristics
relevant to the Fund’s investment strategy.
The following
performance prior to March 15, 2013, is that of the Fund’s Investor Class.
Because Investor Class has higher expenses than Class R6, its performance
typically would have been lower than that of Class
R6.
Returns
would have been lower if the Manager had not reimbursed certain expenses and/or
waived a portion of the investment management fees during certain of the periods
shown.
Past performance (before and
after taxes) is not a prediction of future results. Visit
www.nb.com
or call 800-366-6264 for
updated performance information.
year-by-year % Returns as of 12/31 each
year
Years |
Returns |
2013 |
37.25% |
2014 |
0.02% |
2015 |
0.47% |
2016 |
18.44% |
2017 |
15.88% |
2018 |
-6.42% |
2019 |
29.76% |
2020 |
25.17% |
2021 |
18.46% |
2022 |
-19.05% |
Best
quarter: Q2 2020 24.90%
Worst
quarter: Q1 2020 -20.95%
Year to Date performance as
of: 9/30/2023 6.12%
average annual total % returns as of
12/31/22
Genesis
Fund |
|
1
Year |
|
5
Years |
|
10
Years |
Return
Before Taxes |
|
-19.05 |
|
7.83 |
|
10.68 |
Return
After Taxes on Distributions |
|
-20.99 |
|
5.71 |
|
8.41 |
Return
After Taxes on Distributions and Sale of Fund Shares |
|
-9.87 |
|
6.04 |
|
8.35 |
Russell
2000® Index (reflects no deduction for
fees, expenses or taxes) |
|
-20.44 |
|
4.13 |
|
9.01 |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local
taxes. Actual after-tax returns depend on an investor’s
tax situation and may differ from those shown. After-tax returns are not
relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. Return After Taxes on
Distributions and Sale of Fund Shares may be higher than other returns for the
same period due to a tax benefit of realizing a capital loss upon the sale of
Fund shares.
INVESTMENT
MANAGER
Neuberger
Berman Investment Advisers LLC (“Manager”) is the Fund’s investment
manager.
PORTFOLIO
MANAGERS
The Fund is
managed by Robert W. D’Alelio, Brett S. Reiner and Gregory G. Spiegel (each a
Managing Director of the Manager). Mr. D’Alelio has managed the Fund since 1997.
Mr. Reiner joined as an Associate Portfolio Manager in 2005 and became
co-Portfolio Manager in August 2019. Mr. Spiegel joined as an Associate
Portfolio Manager in 2015 and became co-Portfolio Manager in
August 2019.
Buying
and Selling Shares
You may
purchase, redeem (sell) or exchange shares of the Fund on any day the New York
Stock Exchange is open, at the Fund’s net asset value per share next determined
after your order is received in proper form. Shares of the Fund generally are
available only through certain investment providers, such as banks, brokerage
firms, retirement plan administrators, and financial advisers. Contact any
investment provider authorized to sell the Fund’s shares. See “Maintaining Your
Account” in the prospectus for eligibility requirements for purchases of Class
R6 shares.
For certain
institutional investors, shares of the Fund may be available directly from
Neuberger Berman BD LLC by regular, first class mail (Neuberger Berman Funds,
P.O. Box 219189, Kansas City, MO 64121-9189), by express delivery, registered
mail, or certified mail (Neuberger Berman Funds, 430 West 7th Street,
Suite 219189, Kansas City, MO 64105-1407), or by wire, fax,
telephone,
or exchange (call 800-366-6264 for instructions). See “Maintaining Your Account”
in the prospectus for eligibility requirements for direct purchases of shares
and for instructions on buying and redeeming (selling) shares
directly.
The Fund
does not impose minimum purchase requirements for Class R6 shares. However, you
should contact your investment provider to determine whether it imposes minimum
purchase requirements.
Tax
Information
Unless you
invest in the Fund through a tax-advantaged retirement plan or account or are a
tax-exempt investor, you will be subject to tax on Fund distributions to you of
ordinary income and/or net capital gains. Those distributions generally are not
taxable to such a plan or account or a tax-exempt investor, although withdrawals
from certain retirement plans and accounts generally are subject to federal
income tax.
Payments
to Investment Providers and Other Financial Intermediaries
If you
purchase shares of another class of the Fund through an investment provider or
other financial intermediary, such as a bank, brokerage firm, workplace
retirement program, or financial adviser (who may be affiliated with Neuberger
Berman), the Fund and/or Neuberger Berman BD LLC and/or its affiliates may pay
the intermediary for the sale of shares of those other classes of the Fund and
related services. These payments may create a conflict of interest by
influencing the investment provider or other financial intermediary and its
employees to recommend the Fund or those other classes of the Fund over another
investment. Neuberger Berman does not provide ongoing payments to third
parties for any record-keeping or administrative services in connection with
investments in Class R6. To the extent the Fund makes such payments with
respect to another class, they can come only out of the assets of that other
class.
Neuberger Berman International Equity Fund
Class R6
Shares (NRIQX)
GOAL
The Fund
seeks long-term growth of capital by investing primarily in common stocks of
foreign companies.
Fees and
Expenses
These tables
describe the fees and expenses that you may pay if you buy, hold or sell shares
of the Fund. You may pay other fees, such as brokerage commissions and other
fees to financial intermediaries, which are not reflected in the table and
example below.
Shareholder Fees (fees paid
directly from your investment) |
|
None |
Annual Fund Operating Expenses
(expenses that you pay each year as a % of the value of your
investment) |
|
|
Management
fees |
|
0.86 |
Distribution
and/or shareholder service (12b-1) fees |
|
None |
Other
expenses |
|
0.07 |
Total
annual operating expenses |
|
0.93 |
Fee
waivers and/or expense reimbursement |
|
0.16 |
Total
annual operating expenses after fee waivers and/or expense
reimbursement1 |
|
0.77 |
Expense
Example
The expense
example can help you compare costs among mutual funds. The example assumes that
you invested $10,000 for the periods shown, that you redeemed all of your shares
at the end of those periods, that the Fund earned a hypothetical 5% total return
each year, and that the Fund’s expenses were those in the table. Actual
performance and expenses may be higher or lower.
|
|
1
Year |
|
3
Years |
|
5
Years |
|
10
Years |
Class
R6 |
|
$79 |
|
$246 |
|
$465 |
|
$1,096 |
Portfolio
Turnover
The Fund
pays transaction costs, such as commissions, when it buys and sells securities
(or “turns over” its portfolio). A higher portfolio turnover rate may indicate
higher transaction costs and may result in higher taxes when Fund shares are
held in a taxable account. These costs, which are not reflected in annual
operating expenses or in the example, affect the Fund’s performance. During the
most recent fiscal year, the Fund’s portfolio turnover rate was 41% of the average
value of its portfolio.
Principal Investment
Strategies
To pursue
its goal, the Fund invests mainly in common stocks of foreign companies of any
size, including companies in developed and emerging markets. The Fund defines a
foreign company as one that is organized outside of the United States and
conducts the majority of its business abroad.
In picking
stocks, the Portfolio Managers look for what they believe to be well-managed and
profitable companies that show growth potential and whose stock prices are
undervalued. Factors in identifying these firms may include strong fundamentals,
such as attractive cash flows and balance sheets, as well as prices that are
attractive in light of projected returns. The Portfolio Managers also consider
the outlooks for various countries and regions around the world, examining
economic, market, social, and political conditions.
As part of
their fundamental investment analysis the Portfolio Managers consider
Environmental, Social and Governance (ESG) factors they believe are financially
material to individual investments, where applicable, as described below. While
this analysis is inherently subjective and may be informed by both internally
generated and third-party metrics, data and other information, the
25
International Equity Fund
Portfolio
Managers believe that the consideration of financially material ESG factors,
alongside traditional financial metrics, may enhance the Fund’s overall
investment process. The consideration of ESG factors does not apply to certain
instruments, such as certain derivative instruments, other registered investment
companies, cash and cash equivalents. The consideration of ESG factors as part
of the investment process does not mean that the Fund pursues a specific
“impact” or “sustainable” investment strategy.
The Fund
seeks to reduce risk by diversifying among many companies and industries.
Although the Fund has the flexibility to invest a significant portion of its
assets in one country or region, it generally intends to invest across a broad
range of countries and geographical regions. At times, the Portfolio Managers
may emphasize certain sectors or industries that they believe offers a better
risk/reward opportunity.
The
Portfolio Managers follow a disciplined selling strategy and may sell a security
when it reaches a target price, if a company’s business fails to perform as
expected, or when other opportunities appear more attractive.
The Fund
will not change its strategy of normally investing at least 80% of its net
assets, plus the amount of any borrowings for investment purposes, in equity
securities, without providing shareholders at least 60 days’ notice. This test
is applied at the time the Fund invests; later percentage changes caused by a
change in Fund assets, market values or company circumstances will not require
the Fund to dispose of a holding.
PRINCIPAL INVESTMENT
RISKS
Most of the
Fund’s performance depends on what happens in international stock markets, the
Portfolio Managers’ evaluation of those developments, and the success of the
Portfolio Managers in implementing the Fund’s investment strategies. The
markets’ behavior can be difficult to predict, particularly in the short term.
There can be no guarantee that the Fund will achieve its goal. The Fund may take
temporary defensive and cash management positions; to the extent it does, it
will not be pursuing its principal investment strategies.
The actual
risk exposure taken by the Fund in its investment program will vary over time,
depending on various factors including the Portfolio Managers’ evaluation of
issuer, political, regulatory, market, or economic developments. There can be no
guarantee that the Portfolio Managers will be successful in their attempts to
manage the risk exposure of the Fund or will appropriately evaluate or weigh the
multiple factors involved in investment decisions, including issuer, market
and/or instrument-specific analysis, valuation and ESG factors.
The Fund is a mutual fund, not a bank deposit, and is not
guaranteed or insured by the Federal Deposit Insurance Corporation or any other
government agency. The value of your investment may fall, sometimes sharply,
and you could lose money by investing in the
Fund.
Each of the
following risks, which are described in alphabetical order and not in order of
any presumed importance, can significantly affect the Fund’s performance. The
relative importance of, or potential exposure as a result of, each of these
risks will vary based on market and other investment-specific
considerations.
Currency
Risk. Currency risk is the risk that foreign currencies will decline in
value relative to the U.S. dollar. To the extent that the Fund invests in
securities or other instruments denominated in or indexed to foreign currencies,
changes in currency exchange rates could adversely impact investment gains or
add to investment losses. Currency exchange rates may fluctuate significantly
over short periods of time and can be affected unpredictably by various factors,
including investor perception and changes in interest rates; intervention, or
failure to intervene, by U.S. or foreign governments, central banks, or
supranational entities; or by currency controls or political developments in the
U.S. or abroad.
Foreign
and Emerging Market Risk. Foreign securities involve risks in addition to
those associated with comparable U.S. securities. Additional risks include
exposure to less developed or less efficient trading markets; social, political,
diplomatic, or economic instability; trade barriers and other protectionist
trade policies (including those of the U.S.); imposition of economic sanctions
against a particular country or countries, organizations, companies, entities
and/or individuals; significant government involvement in an economy and/or
market structure; fluctuations in foreign currencies or currency redenomination;
potential for default on sovereign debt; nationalization or expropriation of
assets; settlement, custodial or other operational risks; higher transaction
costs; confiscatory withholding or other taxes; and less stringent auditing and
accounting, corporate disclosure, governance, and legal standards. As a result,
foreign securities may fluctuate more widely in price, and may also be less
liquid, than comparable U.S. securities. Regardless of where a company is
organized or its stock is traded, its performance may be affected significantly
by events in regions from which it derives its profits or in which it conducts
significant operations.
26
International Equity Fund
Investing in
emerging market countries involves risks in addition to and greater than those
generally associated with investing in more developed foreign countries. The
governments of emerging market countries may be more unstable and more likely to
impose capital controls, nationalize a company or industry, place restrictions
on foreign ownership and on withdrawing sale proceeds of securities from the
country, intervene in the financial markets, and/or impose burdensome taxes that
could adversely affect security prices. To the extent a foreign security is
denominated in U.S. dollars, there is also the risk that a foreign government
will not let U.S. dollar-denominated assets leave the country. In addition, the
economies of emerging market countries may be dependent on relatively few
industries that are more susceptible to local and global changes. Emerging
market countries may also have less developed legal and accounting systems, and
their legal systems may deal with issuer bankruptcies and defaults differently
than U.S. law would. Securities markets in emerging market countries are also
relatively small and have substantially lower trading volumes. Securities of
issuers in emerging market countries may be more volatile and less liquid than
securities of issuers in foreign countries with more developed economies or
markets and the situation may require that the Fund fair value its holdings in
those countries.
Securities
of issuers traded on foreign exchanges may be suspended, either by the issuers
themselves, by an exchange, or by governmental authorities. The likelihood of
such suspensions may be higher for securities of issuers in emerging or
less-developed market countries than in countries with more developed markets.
Trading suspensions may be applied from time to time to the securities of
individual issuers for reasons specific to that issuer, or may be applied
broadly by exchanges or governmental authorities in response to market events.
Suspensions may last for significant periods of time, during which trading in
the securities and in instruments that reference the securities, such as
derivative instruments, may be halted. In the event that the Fund holds material
positions in such suspended securities or instruments, the Fund’s ability to
liquidate its positions or provide liquidity to investors may be compromised and
the Fund could incur significant losses.
From time to
time, based on market or economic conditions, the Fund may invest a significant
portion of its assets in one country or geographic region. If the Fund does so,
there is a greater risk that economic, political, regulatory, diplomatic, social
and environmental conditions in that particular country or geographic region may
have a significant impact on the Fund’s performance and that the Fund’s
performance will be more volatile than the performance of more geographically
diversified funds.
Growth
Stock Risk. Because the prices of most growth stocks are based on future
expectations, these stocks tend to be more sensitive than value stocks to bad
economic news and negative earnings surprises. When these expectations are not
met or decrease, the prices of these stocks may decline, sometimes sharply, even
if earnings showed an absolute increase. The Fund attempts to lessen the risk of
such losses by seeking growth stocks that sell at what the adviser believes are
attractive prices. If the adviser is incorrect in its assessment of a stock’s
value, this may negatively impact the Fund. Bad economic news or changing
investor perceptions may adversely affect growth stocks across several sectors
and industries simultaneously.
Issuer-Specific
Risk. An individual security may be more volatile, and may perform
differently, than the market as a whole.
Liquidity
Risk. From time to time, the trading market for a particular investment in
which the Fund invests, or a particular type of instrument in which the Fund is
invested, may become less liquid or even illiquid. Illiquid investments
frequently can be more difficult to purchase or sell at an advantageous price or
time, and there is a greater risk that the investments may not be sold for the
price at which the Fund is carrying them. Certain investments that were liquid
when the Fund purchased them may become illiquid, sometimes abruptly.
Additionally, market closures due to holidays or other factors may render a
security or group of securities (e.g., securities tied to a particular country
or geographic region) illiquid for a period of time. An inability to sell a
portfolio position can adversely affect the Fund’s value or prevent the Fund
from being able to take advantage of other investment opportunities. Market
prices for such securities or other investments may be volatile. During periods
of substantial market volatility, an investment or even an entire market segment
may become illiquid, sometimes abruptly, which can adversely affect the Fund’s
ability to limit losses.
Unexpected
episodes of illiquidity, including due to market or political factors,
instrument or issuer-specific factors and/or unanticipated outflows or other
factors, may limit the Fund’s ability to pay redemption proceeds within the
allowable time period. To meet redemption requests during periods of
illiquidity, the Fund may be forced to sell securities at an unfavorable time
and/or under unfavorable conditions.
Market
Capitalization Risk. To the extent the Fund invests in securities of small-,
mid-, or large-cap companies, it takes on the associated risks. At times, any of
these market capitalizations may be out of favor with investors. Compared to
small- and mid-cap companies, large-cap companies may be unable to respond as
quickly to changes and opportunities and may grow at a slower rate. Compared to
large-cap companies, small- and mid-cap companies may depend on a more limited
management group, may have a shorter history of operations, less publicly
available information, less stable earnings, and limited product lines, markets
or financial resources. The securities of small- and mid-cap companies are often
more volatile, which at times can be rapid and
27
International Equity Fund
unpredictable,
and less liquid than the securities of larger companies and may be more affected
than other types of securities by the underperformance of a sector, during
market downturns, or by adverse publicity and investor perceptions.
Market
Volatility Risk. Markets may be volatile and values of individual securities
and other investments, including those of a particular type, may decline
significantly in response to adverse issuer, political, regulatory, market,
economic or other developments that may cause broad changes in market value,
public perceptions concerning these developments, and adverse investor sentiment
or publicity. Geopolitical and other risks, including environmental and public
health risks may add to instability in world economies and markets generally.
Changes in value may be temporary or may last for extended periods. If the Fund
sells a portfolio position before it reaches its market peak, it may miss out on
opportunities for better performance.
Recent
Market Conditions. Both U.S. and international markets have experienced
significant volatility in recent months and years. As a result of such
volatility, investment returns may fluctuate significantly. National economies
are substantially interconnected, as are global financial markets, which creates
the possibility that conditions in one country or region might adversely impact
issuers in a different country or region. However, the interconnectedness of
economies and/or markets may be diminishing, which may impact such economies and
markets in ways that cannot be foreseen at this time.
Although
interest rates were unusually low in recent years in the U.S. and abroad,
recently, the Federal Reserve and certain foreign central banks raised interest
rates as part of their efforts to address rising inflation. It is difficult to
accurately predict the pace at which interest rates might increase, the timing,
frequency or magnitude of any such increases in interest rates, or when such
increases might stop. Additionally, various economic and political factors could
cause the Federal Reserve or other foreign central banks to change their
approach in the future and such actions may result in an economic slowdown both
in the U.S. and abroad. Unexpected changes in interest rates could lead to
market volatility or reduce liquidity in certain sectors of the market.
Deteriorating economic fundamentals may, in turn, increase the risk of default
or insolvency of particular issuers, negatively impact market value, cause
credit spreads to widen, and reduce bank balance sheets. Any of these could
cause an increase in market volatility, or reduce liquidity across various
markets or decrease confidence in the markets.
Some
countries, including the U.S., have adopted more protectionist trade policies.
Slowing global economic growth, the rise in protectionist trade policies,
changes to some major international trade agreements, risks associated with the
trade agreement between the United Kingdom and the European Union, and the risks
associated with trade negotiations between the U.S. and China, could affect the
economies of many nations in ways that cannot necessarily be foreseen at the
present time. In addition, the current strength of the U.S. dollar may decrease
foreign demand for U.S. assets, which could have a negative impact on certain
issuers and/or industries.
Regulators
in the U.S. have proposed and adopted a number of changes to regulations
involving the markets and issuers, some of which apply to the Fund. The full
effect of various newly adopted regulations is not currently known.
Additionally, it is not currently known whether any of the proposed regulations
will be adopted. However, due to the scope of regulations being proposed and
adopted, certain of these changes to regulation could limit the Fund’s ability
to pursue its investment strategies or make certain investments, may make it
more costly for it to operate, or adversely impact performance.
Tensions,
war, or open conflict between nations, such as between Russia and Ukraine, in
the Middle East, or in eastern Asia could affect the economies of many nations,
including the United States. The duration of ongoing hostilities and any
sanctions and related events cannot be predicted. Those events present material
uncertainty and risk with respect to markets globally and the performance of the
Fund and its investments or operations could be negatively impacted.
High public
debt in the U.S. and other countries creates ongoing systemic and market risks
and policymaking uncertainty. There is no assurance that the U.S. Congress will
act to raise the nation’s debt ceiling; a failure to do so could cause market
turmoil and substantial investment risks that cannot now be fully predicted.
Unexpected political, regulatory and diplomatic events within the U.S. and
abroad may affect investor and consumer confidence and may adversely impact
financial markets and the broader economy.
There is
widespread concern about the potential effects of global climate change on
property and security values. Certain issuers, industries and regions may be
adversely affected by the impact of climate change in ways that cannot be
foreseen. The impact of legislation, regulation and international accords
related to climate change may negatively impact certain issuers and/or
industries.
Redemption
Risk. The Fund may experience periods of large or frequent redemptions that
could cause the Fund to sell assets at inopportune times, which could have a
negative impact on the Fund’s overall liquidity, or at a loss or depressed
value. Redemption risk is greater to the extent that one or more investors or
intermediaries control a large percentage of investments in the Fund and the
risk is heightened during periods of declining or illiquid markets. Large
redemptions could hurt the Fund’s performance, increase transaction costs, and
create adverse tax consequences.
28
International Equity Fund
Sector
Risk. From time to time, based on market or economic conditions, the Fund
may have significant positions in one or more sectors of the market. To the
extent the Fund invests more heavily in particular sectors, its performance will
be especially sensitive to developments that significantly affect those sectors.
Individual sectors or sub-sectors may be more volatile, and may perform
differently, than the broader market. The industries that constitute a sector
may all react in the same way to economic, political or regulatory
events.
Securities
Lending Risk. Securities lending involves a possible delay in recovery of
the loaned securities or a possible loss of rights in the collateral should the
borrower fail financially. The Fund could also lose money if the value of the
collateral decreases.
Value
Stock Risk. Value stocks may remain undervalued for extended periods of
time, may decrease in value during a given period, may not ever realize what the
portfolio management team believes to be their full value, or the portfolio
management team’s assumptions about intrinsic value or potential for
appreciation may be incorrect. This may happen, among other reasons, because of
a failure to anticipate which stocks or industries would benefit from changing
market or economic conditions or investor preferences.
A summary
of the Fund’s additional principal investment risks is as
follows:
Risk of
Increase in Expenses. A decline in the Fund’s average net assets during the
current fiscal year due to market volatility or other factors could cause the
Fund’s expenses for the current fiscal year to be higher than the expense
information presented in “Fees and Expenses.”
Operational
and Cybersecurity Risk. The Fund and its service providers, and your ability
to transact with the Fund, may be negatively impacted due to operational matters
arising from, among other problems, human errors, systems and technology
disruptions or failures, or cybersecurity incidents. Cybersecurity incidents may
allow an unauthorized party to gain access to fund assets, customer data, or
proprietary information, or cause the Fund or its service providers, as well as
the securities trading venues and their service providers, to suffer data
corruption or lose operational functionality. Cybersecurity incidents can result
from deliberate attacks or unintentional events. It is not possible for the
Manager or the other Fund service providers to identify all of the cybersecurity
or other operational risks that may affect the Fund or to develop processes and
controls to completely eliminate or mitigate their occurrence or effects. Most
issuers in which the Fund invests are heavily dependent on computers for data
storage and operations, and require ready access to the internet to conduct
their business. Thus, cybersecurity incidents could also affect issuers of
securities in which the Fund invests, leading to significant loss of
value.
Risk
Management. Risk is an essential part of investing. No risk management
program can eliminate the Fund’s exposure to adverse events; at best, it may
only reduce the possibility that the Fund will be affected by such events, and
especially those risks that are not intrinsic to the Fund’s investment program.
The Fund could experience losses if judgments about risk prove to be
incorrect.
Valuation
Risk. The Fund may not be able to sell an investment at the price at which
the Fund has valued the investment. Such differences could be significant,
particularly for illiquid securities and securities that trade in relatively
thin markets and/or markets that experience extreme volatility. If market or
other conditions make it difficult to value an investment, the Fund may be
required to value such investments using more subjective methods, known as fair
value methodologies. Using fair value methodologies to price investments may
result in a value that is different from an investment’s most recent price and
from the prices used by other funds to calculate their NAVs. The Fund uses
pricing services to provide values for certain securities and there is no
assurance that the Fund will be able to sell an investment at the price
established by such pricing services. The Fund’s ability to value its
investments in an accurate and timely manner may be impacted by technological
issues and/or errors by third party service providers, such as pricing services
or accounting agents.
PERFORMANCE
The
following bar chart and table provide an indication of the risks of investing in
the Fund. The bar chart
shows how the Fund’s performance has varied from year to year. The table below
the bar chart shows what the returns would equal if you averaged out actual
performance over various lengths of time and compares the returns with the
returns of a broad-based market index. The index, which
is described in “Descriptions of Indices” in the prospectus, has characteristics
relevant to the Fund’s investment strategy.
The following
performance prior to September 3, 2013, is that of the Fund’s Institutional
Class. Because Institutional Class has higher expenses than Class R6, its
performance typically would have been lower than that of Class
R6.
Returns
would have been lower if the Manager had not reimbursed certain expenses and/or
waived a portion of the investment management fees during certain of the periods
shown.
29
International Equity Fund
Past performance (before and
after taxes) is not a prediction of future results. Visit
www.nb.com
or call 800-366-6264 for
updated performance information.
year-by-year % Returns as of 12/31 each
year
Years |
Returns |
2013 |
18.12% |
2014 |
-1.82% |
2015 |
2.10% |
2016 |
-0.97% |
2017 |
27.23% |
2018 |
-16.27% |
2019 |
27.94% |
2020 |
13.99% |
2021 |
13.72% |
2022 |
-21.90% |
Best
quarter: Q2 2020 21.42%
Worst
quarter: Q1 2020 -23.27%
Year to Date performance as
of: 9/30/2023 3.40%
average annual total % returns as of
12/31/22
International Equity
Fund |
|
1
Year |
|
5
Years |
|
10
Years |
Return
Before Taxes |
|
-21.90 |
|
1.64 |
|
4.93 |
Return
After Taxes on Distributions |
|
-22.87 |
|
0.41 |
|
4.12 |
Return
After Taxes on Distributions and Sale of Fund Shares |
|
-12.28 |
|
1.36 |
|
3.95 |
MSCI
EAFE® Index (Net) (reflects reinvested dividends net of
withholding taxes, but reflects no deduction for fees, expenses or
taxes) |
|
-14.45 |
|
1.54 |
|
4.67 |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local
taxes. Actual after-tax returns depend on an investor’s
tax situation and may differ from those shown. After-tax returns are not
relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. Return After Taxes on
Distributions and Sale of Fund Shares may be higher than other returns for the
same period due to a tax benefit of realizing a capital loss upon the sale of
Fund shares.
INVESTMENT
MANAGER
Neuberger
Berman Investment Advisers LLC (“Manager”) is the Fund’s investment
manager.
PORTFOLIO
MANAGERS
The Fund is
managed by Elias Cohen, CFA (Managing Director of the Manager) and Thomas Hogan,
CFA (Managing Director of the Manager). Mr. Cohen has managed the Fund since
January 2019. Mr. Hogan became an Associate Portfolio Manager in
January 2021 and became Portfolio Manager of the Fund in
December 2022.
Buying
and Selling Shares
You may
purchase, redeem (sell) or exchange shares of the Fund on any day the New York
Stock Exchange is open, at the Fund’s net asset value per share next determined
after your order is received in proper form. Shares of the Fund generally are
available only through certain investment providers, such as banks, brokerage
firms, retirement plan administrators, and financial advisers. Contact any
investment provider authorized to sell the Fund’s shares. See “Maintaining Your
Account” in the prospectus for eligibility requirements for purchases of Class
R6 shares.
For certain
institutional investors, shares of the Fund may be available directly from
Neuberger Berman BD LLC by regular, first class mail (Neuberger Berman Funds,
P.O. Box 219189, Kansas City, MO 64121-9189), by express delivery, registered
mail, or certified mail (Neuberger Berman Funds, 430 West 7th Street,
Suite 219189, Kansas City, MO 64105-1407), or by wire, fax,
30
International Equity Fund
telephone,
or exchange (call 800-366-6264 for instructions). See “Maintaining Your Account”
in the prospectus for eligibility requirements for direct purchases of shares
and for instructions on buying and redeeming (selling) shares
directly.
The Fund
does not impose minimum purchase requirements for Class R6 shares. However, you
should contact your investment provider to determine whether it imposes minimum
purchase requirements.
Tax
Information
Unless you
invest in the Fund through a tax-advantaged retirement plan or account or are a
tax-exempt investor, you will be subject to tax on Fund distributions to you of
ordinary income and/or net capital gains. Those distributions generally are not
taxable to such a plan or account or a tax-exempt investor, although withdrawals
from certain retirement plans and accounts generally are subject to federal
income tax.
Payments
to Investment Providers and Other Financial Intermediaries
If you
purchase shares of another class of the Fund through an investment provider or
other financial intermediary, such as a bank, brokerage firm, workplace
retirement program, or financial adviser (who may be affiliated with Neuberger
Berman), the Fund and/or Neuberger Berman BD LLC and/or its affiliates may pay
the intermediary for the sale of shares of those other classes of the Fund and
related services. These payments may create a conflict of interest by
influencing the investment provider or other financial intermediary and its
employees to recommend the Fund or those other classes of the Fund over another
investment. Neuberger Berman does not provide ongoing payments to third
parties for any record-keeping or administrative services in connection with
investments in Class R6. To the extent the Fund makes such payments with
respect to another class, they can come only out of the assets of that other
class.
31
International Equity Fund
Neuberger Berman International Select Fund
Class R6
Shares (NRILX)
GOAL
The Fund
seeks long-term growth of capital by investing primarily in common stocks of
foreign companies.
Fees and
Expenses
These tables
describe the fees and expenses that you may pay if you buy, hold or sell shares
of the Fund. You may pay other fees, such as brokerage commissions and other
fees to financial intermediaries, which are not reflected in the table and
example below.
Shareholder Fees (fees paid
directly from your investment) |
|
None |
Annual Fund Operating Expenses
(expenses that you pay each year as a % of the value of your
investment) |
|
|
Management
fees |
|
0.60 |
Distribution
and/or shareholder service (12b-1) fees |
|
None |
Other
expenses |
|
0.36 |
Total
annual operating expenses |
|
0.96 |
Fee
waivers and/or expense reimbursement |
|
0.25 |
Total
annual operating expenses after fee waivers and/or expense
reimbursement1 |
|
0.71 |
Expense
Example
The expense
example can help you compare costs among mutual funds. The example assumes that
you invested $10,000 for the periods shown, that you redeemed all of your shares
at the end of those periods, that the Fund earned a hypothetical 5% total return
each year, and that the Fund’s expenses were those in the table. Actual
performance and expenses may be higher or lower.
|
|
1
Year |
|
3
Years |
|
5
Years |
|
10
Years |
Class
R6 |
|
$73 |
|
$227 |
|
$454 |
|
$1,106 |
Portfolio
Turnover
The Fund
pays transaction costs, such as commissions, when it buys and sells securities
(or “turns over” its portfolio). A higher portfolio turnover rate may indicate
higher transaction costs and may result in higher taxes when Fund shares are
held in a taxable account. These costs, which are not reflected in annual
operating expenses or in the example, affect the Fund’s performance. During the
most recent fiscal year, the Fund’s portfolio turnover rate was 43% of the average
value of its portfolio.
Principal Investment
Strategies
To pursue
its goal, the Fund invests mainly in common stocks of foreign companies,
including companies in developed and emerging markets. The Fund defines a
foreign company as one that is organized outside of the United States and
conducts the majority of its business abroad. Under normal circumstances, at
least 80% of the Fund’s net assets, plus the amount of any borrowings for
investment purposes, will be invested in companies with a market capitalization
greater than $2.5 billion at the time of purchase.
In picking
stocks, the Portfolio Managers look for what they believe to be well-managed and
profitable companies that show growth potential and whose stock prices are
undervalued. Factors in identifying these firms may include strong fundamentals,
such as attractive cash flows and balance sheets, as well as prices that are
attractive in light of projected returns. The Portfolio Managers also consider
the outlooks for various countries and sectors around the world, examining
economic, market, social, and political conditions.
32
International Select Fund
As part of
their fundamental investment analysis the Portfolio Managers consider
Environmental, Social and Governance (ESG) factors they believe are financially
material to individual investments, where applicable, as described below. While
this analysis is inherently subjective and may be informed by both internally
generated and third-party metrics, data and other information, the Portfolio
Managers believe that the consideration of financially material ESG factors,
alongside traditional financial metrics, may enhance the Fund’s overall
investment process. The consideration of ESG factors does not apply to certain
instruments, such as certain derivative instruments, other registered investment
companies, cash and cash equivalents. The consideration of ESG factors as part
of the investment process does not mean that the Fund pursues a specific
“impact” or “sustainable” investment strategy.
The Fund
seeks to reduce risk by diversifying among many companies and industries.
Although the Fund has the flexibility to invest a significant portion of its
assets in one country or region, it generally intends to remain well-diversified
across countries and geographical regions. At times, the Portfolio Managers may
emphasize certain sectors or industries that they believe offers a better
risk/reward opportunity.
The
Portfolio Managers follow a disciplined selling strategy and may sell a security
when it reaches a target price, if a company’s business fails to perform as
expected, or when other opportunities appear more attractive.
PRINCIPAL INVESTMENT
RISKS
Most of the
Fund’s performance depends on what happens in international stock markets, the
Portfolio Managers’ evaluation of those developments, and the success of the
Portfolio Managers in implementing the Fund’s investment strategies. The
markets’ behavior can be difficult to predict, particularly in the short term.
There can be no guarantee that the Fund will achieve its goal. The Fund may take
temporary defensive and cash management positions; to the extent it does, it
will not be pursuing its principal investment strategies.
The actual
risk exposure taken by the Fund in its investment program will vary over time,
depending on various factors including the Portfolio Managers’ evaluation of
issuer, political, regulatory, market, or economic developments. There can be no
guarantee that the Portfolio Managers will be successful in their attempts to
manage the risk exposure of the Fund or will appropriately evaluate or weigh the
multiple factors involved in investment decisions, including issuer, market
and/or instrument-specific analysis, valuation and ESG factors.
The Fund is a mutual fund, not a bank deposit, and is not
guaranteed or insured by the Federal Deposit Insurance Corporation or any other
government agency. The value of your investment may fall, sometimes sharply,
and you could lose money by investing in the
Fund.
Each of the
following risks, which are described in alphabetical order and not in order of
any presumed importance, can significantly affect the Fund’s performance. The
relative importance of, or potential exposure as a result of, each of these
risks will vary based on market and other investment-specific
considerations.
Currency
Risk. Currency risk is the risk that foreign currencies will decline in
value relative to the U.S. dollar. To the extent that the Fund invests in
securities or other instruments denominated in or indexed to foreign currencies,
changes in currency exchange rates could adversely impact investment gains or
add to investment losses. Currency exchange rates may fluctuate significantly
over short periods of time and can be affected unpredictably by various factors,
including investor perception and changes in interest rates; intervention, or
failure to intervene, by U.S. or foreign governments, central banks, or
supranational entities; or by currency controls or political developments in the
U.S. or abroad.
Foreign
and Emerging Market Risk. Foreign securities involve risks in addition to
those associated with comparable U.S. securities. Additional risks include
exposure to less developed or less efficient trading markets; social, political,
diplomatic, or economic instability; trade barriers and other protectionist
trade policies (including those of the U.S.); imposition of economic sanctions
against a particular country or countries, organizations, companies, entities
and/or individuals; significant government involvement in an economy and/or
market structure; fluctuations in foreign currencies or currency redenomination;
potential for default on sovereign debt; nationalization or expropriation of
assets; settlement, custodial or other operational risks; higher transaction
costs; confiscatory withholding or other taxes; and less stringent auditing and
accounting, corporate disclosure, governance, and legal standards. As a result,
foreign securities may fluctuate more widely in price, and may also be less
liquid, than comparable U.S. securities. Regardless of where a company is
organized or its stock is traded, its performance may be affected significantly
by events in regions from which it derives its profits or in which it conducts
significant operations.
Investing in
emerging market countries involves risks in addition to and greater than those
generally associated with investing in more developed foreign countries. The
governments of emerging market countries may be more unstable and more likely to
impose capital controls, nationalize a company or industry, place restrictions
on foreign ownership and on withdrawing sale
33
International Select Fund
proceeds of
securities from the country, intervene in the financial markets, and/or impose
burdensome taxes that could adversely affect security prices. To the extent a
foreign security is denominated in U.S. dollars, there is also the risk that a
foreign government will not let U.S. dollar-denominated assets leave the
country. In addition, the economies of emerging market countries may be
dependent on relatively few industries that are more susceptible to local and
global changes. Emerging market countries may also have less developed legal and
accounting systems, and their legal systems may deal with issuer bankruptcies
and defaults differently than U.S. law would. Securities markets in emerging
market countries are also relatively small and have substantially lower trading
volumes. Securities of issuers in emerging market countries may be more volatile
and less liquid than securities of issuers in foreign countries with more
developed economies or markets and the situation may require that the Fund fair
value its holdings in those countries.
Securities
of issuers traded on foreign exchanges may be suspended, either by the issuers
themselves, by an exchange, or by governmental authorities. The likelihood of
such suspensions may be higher for securities of issuers in emerging or
less-developed market countries than in countries with more developed markets.
Trading suspensions may be applied from time to time to the securities of
individual issuers for reasons specific to that issuer, or may be applied
broadly by exchanges or governmental authorities in response to market events.
Suspensions may last for significant periods of time, during which trading in
the securities and in instruments that reference the securities, such as
derivative instruments, may be halted. In the event that the Fund holds material
positions in such suspended securities or instruments, the Fund’s ability to
liquidate its positions or provide liquidity to investors may be compromised and
the Fund could incur significant losses.
From time to
time, based on market or economic conditions, the Fund may invest a significant
portion of its assets in one country or geographic region. If the Fund does so,
there is a greater risk that economic, political, regulatory, diplomatic, social
and environmental conditions in that particular country or geographic region may
have a significant impact on the Fund’s performance and that the Fund’s
performance will be more volatile than the performance of more geographically
diversified funds.
Growth
Stock Risk. Because the prices of most growth stocks are based on future
expectations, these stocks tend to be more sensitive than value stocks to bad
economic news and negative earnings surprises. When these expectations are not
met or decrease, the prices of these stocks may decline, sometimes sharply, even
if earnings showed an absolute increase. The Fund attempts to lessen the risk of
such losses by seeking growth stocks that sell at what the adviser believes are
attractive prices. If the adviser is incorrect in its assessment of a stock’s
value, this may negatively impact the Fund. Bad economic news or changing
investor perceptions may adversely affect growth stocks across several sectors
and industries simultaneously.
Issuer-Specific
Risk. An individual security may be more volatile, and may perform
differently, than the market as a whole.
Liquidity
Risk. From time to time, the trading market for a particular investment in
which the Fund invests, or a particular type of instrument in which the Fund is
invested, may become less liquid or even illiquid. Illiquid investments
frequently can be more difficult to purchase or sell at an advantageous price or
time, and there is a greater risk that the investments may not be sold for the
price at which the Fund is carrying them. Certain investments that were liquid
when the Fund purchased them may become illiquid, sometimes abruptly.
Additionally, market closures due to holidays or other factors may render a
security or group of securities (e.g., securities tied to a particular country
or geographic region) illiquid for a period of time. An inability to sell a
portfolio position can adversely affect the Fund’s value or prevent the Fund
from being able to take advantage of other investment opportunities. Market
prices for such securities or other investments may be volatile. During periods
of substantial market volatility, an investment or even an entire market segment
may become illiquid, sometimes abruptly, which can adversely affect the Fund’s
ability to limit losses.
Unexpected
episodes of illiquidity, including due to market or political factors,
instrument or issuer-specific factors and/or unanticipated outflows or other
factors, may limit the Fund’s ability to pay redemption proceeds within the
allowable time period. To meet redemption requests during periods of
illiquidity, the Fund may be forced to sell securities at an unfavorable time
and/or under unfavorable conditions.
Market
Capitalization Risk. To the extent the Fund invests in securities of small-,
mid-, or large-cap companies, it takes on the associated risks. At times, any of
these market capitalizations may be out of favor with investors. Compared to
small- and mid-cap companies, large-cap companies may be unable to respond as
quickly to changes and opportunities and may grow at a slower rate. Compared to
large-cap companies, small- and mid-cap companies may depend on a more limited
management group, may have a shorter history of operations, less publicly
available information, less stable earnings, and limited product lines, markets
or financial resources. The securities of small- and mid-cap companies are often
more volatile, which at times can be rapid and unpredictable, and less liquid
than the securities of larger companies and may be more affected than other
types of securities by the underperformance of a sector, during market
downturns, or by adverse publicity and investor perceptions.
34
International Select Fund
Market
Volatility Risk. Markets may be volatile and values of individual securities
and other investments, including those of a particular type, may decline
significantly in response to adverse issuer, political, regulatory, market,
economic or other developments that may cause broad changes in market value,
public perceptions concerning these developments, and adverse investor sentiment
or publicity. Geopolitical and other risks, including environmental and public
health risks may add to instability in world economies and markets generally.
Changes in value may be temporary or may last for extended periods. If the Fund
sells a portfolio position before it reaches its market peak, it may miss out on
opportunities for better performance.
Recent
Market Conditions. Both U.S. and international markets have experienced
significant volatility in recent months and years. As a result of such
volatility, investment returns may fluctuate significantly. National economies
are substantially interconnected, as are global financial markets, which creates
the possibility that conditions in one country or region might adversely impact
issuers in a different country or region. However, the interconnectedness of
economies and/or markets may be diminishing, which may impact such economies and
markets in ways that cannot be foreseen at this time.
Although
interest rates were unusually low in recent years in the U.S. and abroad,
recently, the Federal Reserve and certain foreign central banks raised interest
rates as part of their efforts to address rising inflation. It is difficult to
accurately predict the pace at which interest rates might increase, the timing,
frequency or magnitude of any such increases in interest rates, or when such
increases might stop. Additionally, various economic and political factors could
cause the Federal Reserve or other foreign central banks to change their
approach in the future and such actions may result in an economic slowdown both
in the U.S. and abroad. Unexpected changes in interest rates could lead to
market volatility or reduce liquidity in certain sectors of the market.
Deteriorating economic fundamentals may, in turn, increase the risk of default
or insolvency of particular issuers, negatively impact market value, cause
credit spreads to widen, and reduce bank balance sheets. Any of these could
cause an increase in market volatility, or reduce liquidity across various
markets or decrease confidence in the markets.
Some
countries, including the U.S., have adopted more protectionist trade policies.
Slowing global economic growth, the rise in protectionist trade policies,
changes to some major international trade agreements, risks associated with the
trade agreement between the United Kingdom and the European Union, and the risks
associated with trade negotiations between the U.S. and China, could affect the
economies of many nations in ways that cannot necessarily be foreseen at the
present time. In addition, the current strength of the U.S. dollar may decrease
foreign demand for U.S. assets, which could have a negative impact on certain
issuers and/or industries.
Regulators
in the U.S. have proposed and adopted a number of changes to regulations
involving the markets and issuers, some of which apply to the Fund. The full
effect of various newly adopted regulations is not currently known.
Additionally, it is not currently known whether any of the proposed regulations
will be adopted. However, due to the scope of regulations being proposed and
adopted, certain of these changes to regulation could limit the Fund’s ability
to pursue its investment strategies or make certain investments, may make it
more costly for it to operate, or adversely impact performance.
Tensions,
war, or open conflict between nations, such as between Russia and Ukraine, in
the Middle East, or in eastern Asia could affect the economies of many nations,
including the United States. The duration of ongoing hostilities and any
sanctions and related events cannot be predicted. Those events present material
uncertainty and risk with respect to markets globally and the performance of the
Fund and its investments or operations could be negatively impacted.
High public
debt in the U.S. and other countries creates ongoing systemic and market risks
and policymaking uncertainty. There is no assurance that the U.S. Congress will
act to raise the nation’s debt ceiling; a failure to do so could cause market
turmoil and substantial investment risks that cannot now be fully predicted.
Unexpected political, regulatory and diplomatic events within the U.S. and
abroad may affect investor and consumer confidence and may adversely impact
financial markets and the broader economy.
There is
widespread concern about the potential effects of global climate change on
property and security values. Certain issuers, industries and regions may be
adversely affected by the impact of climate change in ways that cannot be
foreseen. The impact of legislation, regulation and international accords
related to climate change may negatively impact certain issuers and/or
industries.
Redemption
Risk. The Fund may experience periods of large or frequent redemptions that
could cause the Fund to sell assets at inopportune times, which could have a
negative impact on the Fund’s overall liquidity, or at a loss or depressed
value. Redemption risk is greater to the extent that one or more investors or
intermediaries control a large percentage of investments in the Fund and the
risk is heightened during periods of declining or illiquid markets. Large
redemptions could hurt the Fund’s performance, increase transaction costs, and
create adverse tax consequences.
Sector
Risk. From time to time, based on market or economic conditions, the Fund
may have significant positions in one or more sectors of the market. To the
extent the Fund invests more heavily in particular sectors, its performance will
be especially
35
International Select Fund
sensitive to
developments that significantly affect those sectors. Individual sectors or
sub-sectors may be more volatile, and may perform differently, than the broader
market. The industries that constitute a sector may all react in the same way to
economic, political or regulatory events.
Securities
Lending Risk. Securities lending involves a possible delay in recovery of
the loaned securities or a possible loss of rights in the collateral should the
borrower fail financially. The Fund could also lose money if the value of the
collateral decreases.
Value
Stock Risk. Value stocks may remain undervalued for extended periods of
time, may decrease in value during a given period, may not ever realize what the
portfolio management team believes to be their full value, or the portfolio
management team’s assumptions about intrinsic value or potential for
appreciation may be incorrect. This may happen, among other reasons, because of
a failure to anticipate which stocks or industries would benefit from changing
market or economic conditions or investor preferences.
A summary
of the Fund’s additional principal investment risks is as
follows:
Risk of
Increase in Expenses. A decline in the Fund’s average net assets during the
current fiscal year due to market volatility or other factors could cause the
Fund’s expenses for the current fiscal year to be higher than the expense
information presented in “Fees and Expenses.”
Operational
and Cybersecurity Risk. The Fund and its service providers, and your ability
to transact with the Fund, may be negatively impacted due to operational matters
arising from, among other problems, human errors, systems and technology
disruptions or failures, or cybersecurity incidents. Cybersecurity incidents may
allow an unauthorized party to gain access to fund assets, customer data, or
proprietary information, or cause the Fund or its service providers, as well as
the securities trading venues and their service providers, to suffer data
corruption or lose operational functionality. Cybersecurity incidents can result
from deliberate attacks or unintentional events. It is not possible for the
Manager or the other Fund service providers to identify all of the cybersecurity
or other operational risks that may affect the Fund or to develop processes and
controls to completely eliminate or mitigate their occurrence or effects. Most
issuers in which the Fund invests are heavily dependent on computers for data
storage and operations, and require ready access to the internet to conduct
their business. Thus, cybersecurity incidents could also affect issuers of
securities in which the Fund invests, leading to significant loss of
value.
Risk
Management. Risk is an essential part of investing. No risk management
program can eliminate the Fund’s exposure to adverse events; at best, it may
only reduce the possibility that the Fund will be affected by such events, and
especially those risks that are not intrinsic to the Fund’s investment program.
The Fund could experience losses if judgments about risk prove to be
incorrect.
Valuation
Risk. The Fund may not be able to sell an investment at the price at which
the Fund has valued the investment. Such differences could be significant,
particularly for illiquid securities and securities that trade in relatively
thin markets and/or markets that experience extreme volatility. If market or
other conditions make it difficult to value an investment, the Fund may be
required to value such investments using more subjective methods, known as fair
value methodologies. Using fair value methodologies to price investments may
result in a value that is different from an investment’s most recent price and
from the prices used by other funds to calculate their NAVs. The Fund uses
pricing services to provide values for certain securities and there is no
assurance that the Fund will be able to sell an investment at the price
established by such pricing services. The Fund’s ability to value its
investments in an accurate and timely manner may be impacted by technological
issues and/or errors by third party service providers, such as pricing services
or accounting agents.
PERFORMANCE
The
following bar chart and table provide an indication of the risks of investing in
the Fund. The bar chart
shows how the Fund’s performance has varied from year to year. The table below
the bar chart shows what the returns would equal if you averaged out actual
performance over various lengths of time and compares the returns with the
returns of a broad-based market index. The index, which
is described in “Descriptions of Indices” in the prospectus, has characteristics
relevant to the Fund’s investment strategy.
The following
performance prior to April 17, 2017 is that of the Fund’s Trust Class.
Because Trust Class has higher expenses than Class R6, its performance typically
would have been lower than that of Class R6.
Returns
would have been lower if the Manager had not reimbursed certain expenses and/or
waived a portion of the investment management fees during certain of the periods
shown.
36
International Select Fund
Past performance (before and
after taxes) is not a prediction of future results. Visit
www.nb.com
or call 800-366-6264 for
updated performance information.
YEAR-BY-YEAR % RETURNS AS OF 12/31 EACH
YEAR
Years |
Returns |
2013 |
16.90% |
2014 |
-3.19% |
2015 |
-0.04% |
2016 |
-1.49% |
2017 |
27.60% |
2018 |
-14.70% |
2019 |
26.60% |
2020 |
15.58% |
2021 |
14.23% |
2022 |
-21.91% |
Best
quarter: Q2 2020 20.83%
Worst
quarter: Q1 2020 -22.18%
Year to Date performance as
of: 9/30/2023 3.73%
AVERAGE ANNUAL TOTAL % RETURNS AS OF
12/31/22
International Select
Fund |
|
1
Year |
|
5
Years |
|
10
Years |
Return
Before Taxes |
|
-21.91 |
|
2.17 |
|
4.70 |
Return
After Taxes on Distributions |
|
-22.87 |
|
1.07 |
|
4.01 |
Return
After Taxes on Distributions and Sale of Fund Shares |
|
-12.30 |
|
1.74 |
|
3.76 |
MSCI
EAFE® Index (Net) (reflects reinvested dividends net of
withholding taxes, but reflects no deduction for fees, expenses or
taxes) |
|
-14.45 |
|
1.54 |
|
4.67 |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local
taxes. Actual after-tax returns depend on an investor’s
tax situation and may differ from those shown. After-tax returns are not
relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. Return After Taxes on
Distributions and Sale of Fund Shares may be higher than other returns for the
same period due to a tax benefit of realizing a capital loss upon the sale of
Fund shares.
INVESTMENT
MANAGER
Neuberger
Berman Investment Advisers LLC (“Manager”) is the Fund’s investment
manager.
PORTFOLIO
MANAGERS
The Fund is
managed by Elias Cohen, CFA (Managing Director of the Manager) and Thomas Hogan,
CFA (Managing Director of the Manager). Mr. Cohen has managed the Fund since
December 2016. Mr. Hogan became an Associate Portfolio Manager in
January 2021 and became Portfolio Manager of the Fund in
December 2022.
Buying
and Selling Shares
You may
purchase, redeem (sell) or exchange shares of the Fund on any day the New York
Stock Exchange is open, at the Fund’s net asset value per share next determined
after your order is received in proper form. Shares of the Fund generally are
available only through certain investment providers, such as banks, brokerage
firms, retirement plan administrators, and financial advisers. Contact any
investment provider authorized to sell the Fund’s shares. See “Maintaining Your
Account” in the prospectus for eligibility requirements for purchases of Class
R6 shares.
For certain
institutional investors, shares of the Fund may be available directly from
Neuberger Berman BD LLC by regular, first class mail (Neuberger Berman Funds,
P.O. Box 219189, Kansas City, MO 64121-9189), by express delivery, registered
mail, or certified mail (Neuberger Berman Funds, 430 West 7th Street,
Suite 219189, Kansas City, MO 64105-1407), or by wire, fax,
37
International Select Fund
telephone,
or exchange (call 800-366-6264 for instructions). See “Maintaining Your Account”
in the prospectus for eligibility requirements for direct purchases of shares
and for instructions on buying and redeeming (selling) shares
directly.
The Fund
does not impose minimum purchase requirements for Class R6 shares. However, you
should contact your investment provider to determine whether it imposes minimum
purchase requirements.
Tax
Information
Unless you
invest in the Fund through a tax-advantaged retirement plan or account or are a
tax-exempt investor, you will be subject to tax on Fund distributions to you of
ordinary income and/or net capital gains. Those distributions generally are not
taxable to such a plan or account or a tax-exempt investor, although withdrawals
from certain retirement plans and accounts generally are subject to federal
income tax.
Payments
to Investment Providers and Other Financial Intermediaries
If you
purchase shares of another class of the Fund through an investment provider or
other financial intermediary, such as a bank, brokerage firm, workplace
retirement program, or financial adviser (who may be affiliated with Neuberger
Berman), the Fund and/or Neuberger Berman BD LLC and/or its affiliates may pay
the intermediary for the sale of shares of those other classes of the Fund and
related services. These payments may create a conflict of interest by
influencing the investment provider or other financial intermediary and its
employees to recommend the Fund or those other classes of the Fund over another
investment. Neuberger Berman does not provide ongoing payments to third
parties for any record-keeping or administrative services in connection with
investments in Class R6. To the extent the Fund makes such payments with
respect to another class, they can come only out of the assets of that other
class.
38
International Select Fund
Neuberger Berman International Small Cap Fund
Class R6
(NIORX)
GOAL
The Fund
seeks long-term growth of capital by investing primarily in common stocks of
foreign companies.
Fees and
Expenses
These tables
describe the fees and expenses that you may pay if you buy, hold or sell shares
of the Fund. You may pay other fees, such as brokerage commissions and other
fees to financial intermediaries, which are not reflected in the table and
example below.
Shareholder Fees (fees paid
directly from your investment) |
|
None |
Annual Fund Operating Expenses
(expenses that you pay each year as a % of the value of your
investment) |
|
|
Management
fees |
|
0.90 |
Distribution
and/or shareholder service (12b-1) fees |
|
None |
Other
expenses |
|
9.84 |
Total
annual operating expenses |
|
10.74 |
Fee
waivers and/or expense reimbursement |
|
9.77 |
Total
annual operating expenses after fee waivers and/or expense
reimbursement1 |
|
0.97 |
Expense
Example
The expense
example can help you compare costs among mutual funds. The example assumes that
you invested $10,000 for the periods shown, that you redeemed all of your shares
at the end of those periods, that the Fund earned a hypothetical 5% total return
each year, and that the Fund’s expenses were those in the table. Actual
performance and expenses may be higher or lower.
|
|
1
Year |
|
3
Years |
|
5
Years |
|
10
Years |
Class
R6 |
|
$99 |
|
$309 |
|
$2,590 |
|
$7,242 |
Portfolio
Turnover
The Fund
pays transaction costs, such as commissions, when it buys and sells securities
(or “turns over” its portfolio). A higher portfolio turnover rate may indicate
higher transaction costs and may result in higher taxes when Fund shares are
held in a taxable account. These costs, which are not reflected in annual
operating expenses or in the example, affect the Fund’s performance. During the
most recent fiscal year, the Fund’s portfolio turnover rate was 49% of the average
value of its portfolio.
Principal Investment
Strategies
To pursue
its goal, the Fund invests mainly in common stocks of foreign companies,
including companies in developed and emerging markets. The Fund defines a
foreign company as one that is organized outside of the United States and
conducts the majority of its business abroad. Under normal circumstances, the
Fund will invest at least 80% of its net assets in common stocks of
small-capitalization companies, which it defines as those with a total market
capitalization of no more than $5 billion at the time of purchase.
In picking
stocks, the Portfolio Manager looks for what he believes to be well-managed and
profitable companies that show growth potential and whose stock prices are
undervalued. Factors in identifying these firms may include strong fundamentals,
such as attractive cash flows and balance sheets, as well as prices that are
attractive in light of projected returns. The Portfolio Manager also considers
the outlooks for various countries and sectors around the world, examining
economic, market, social, and political conditions.
39
International Small Cap Fund
The Fund
seeks to reduce risk by diversifying among many companies and industries.
Although the Fund has the flexibility to invest a significant portion of its
assets in one country or region, it generally intends to remain well-diversified
across countries and geographical regions. At times, the Portfolio Manager may
emphasize certain sectors or industries that he believes offers a better
risk/reward opportunity.
As part of
his fundamental investment analysis the Portfolio Manager considers
Environmental, Social and Governance (ESG) factors he believes are financially
material to individual investments, where applicable, as described below. While
this analysis is inherently subjective and may be informed by both internally
generated and third-party metrics, data and other information, the Portfolio
Manager believes that the consideration of financially material ESG factors,
alongside traditional financial metrics, may enhance the Fund’s overall
investment process. The consideration of ESG factors does not apply to certain
instruments, such as certain derivative instruments, other registered investment
companies, cash and cash equivalents. The consideration of ESG factors as part
of the investment process does not mean that the Fund pursues a specific
“impact” or “sustainable” investment strategy.
The
Portfolio Manager follows a disciplined selling strategy and may sell a security
when it reaches a target price, if a company’s business fails to perform as
expected, or when other opportunities appear more attractive.
The Fund
will not change its strategy of normally investing at least 80% of its net
assets, plus the amount of borrowings for investment purposes, in
small-capitalization companies, without providing shareholders at least 60 days’
notice. This test is applied at the time the Fund invests; later percentage
changes caused by a change in Fund assets, market values or company
circumstances will not require the Fund to dispose of a holding.
PRINCIPAL INVESTMENT
RISKS
Most of the
Fund’s performance depends on what happens in international stock markets, the
Portfolio Manager’s evaluation of those developments, and the success of the
Portfolio Manager in implementing the Fund’s investment strategies. The markets’
behavior can be difficult to predict, particularly in the short term. There can
be no guarantee that the Fund will achieve its goal. The Fund may take temporary
defensive and cash management positions; to the extent it does, it will not be
pursuing its principal investment strategies.
The actual
risk exposure taken by the Fund in its investment program will vary over time,
depending on various factors including the Portfolio Manager’s evaluation of
issuer, political, regulatory, market, or economic developments. There can be no
guarantee that the Portfolio Manager will be successful in his attempts to
manage the risk exposure of the Fund or will appropriately evaluate or weigh the
multiple factors involved in investment decisions, including issuer, market
and/or instrument-specific analysis, valuation and ESG factors.
The Fund is a mutual fund, not a bank deposit, and is not
guaranteed or insured by the Federal Deposit Insurance Corporation or any other
government agency. The value of your investment may fall, sometimes sharply,
and you could lose money by investing in the
Fund.
Each of the
following risks, which are described in alphabetical order and not in order of
any presumed importance, can significantly affect the Fund’s performance. The
relative importance of, or potential exposure as a result of, each of these
risks will vary based on market and other investment-specific
considerations.
Currency
Risk. Currency risk is the risk that foreign currencies will decline in
value relative to the U.S. dollar. To the extent that the Fund invests in
securities or other instruments denominated in or indexed to foreign currencies,
changes in currency exchange rates could adversely impact investment gains or
add to investment losses. Currency exchange rates may fluctuate significantly
over short periods of time and can be affected unpredictably by various factors,
including investor perception and changes in interest rates; intervention, or
failure to intervene, by U.S. or foreign governments, central banks, or
supranational entities; or by currency controls or political developments in the
U.S. or abroad.
Foreign
and Emerging Market Risk. Foreign securities involve risks in addition to
those associated with comparable U.S. securities. Additional risks include
exposure to less developed or less efficient trading markets; social, political,
diplomatic, or economic instability; trade barriers and other protectionist
trade policies (including those of the U.S.); imposition of economic sanctions
against a particular country or countries, organizations, companies, entities
and/or individuals; significant government involvement in an economy and/or
market structure; fluctuations in foreign currencies or currency redenomination;
potential for default on sovereign debt; nationalization or expropriation of
assets; settlement, custodial or other operational risks; higher transaction
costs; confiscatory withholding or other taxes; and less stringent auditing and
accounting, corporate disclosure, governance, and legal standards. As a result,
foreign securities may fluctuate more widely in price, and may also be less
liquid, than
40
International Small Cap Fund
comparable
U.S. securities. Regardless of where a company is organized or its stock is
traded, its performance may be affected significantly by events in regions from
which it derives its profits or in which it conducts significant
operations.
Investing in
emerging market countries involves risks in addition to and greater than those
generally associated with investing in more developed foreign countries. The
governments of emerging market countries may be more unstable and more likely to
impose capital controls, nationalize a company or industry, place restrictions
on foreign ownership and on withdrawing sale proceeds of securities from the
country, intervene in the financial markets, and/or impose burdensome taxes that
could adversely affect security prices. To the extent a foreign security is
denominated in U.S. dollars, there is also the risk that a foreign government
will not let U.S. dollar-denominated assets leave the country. In addition, the
economies of emerging market countries may be dependent on relatively few
industries that are more susceptible to local and global changes. Emerging
market countries may also have less developed legal and accounting systems, and
their legal systems may deal with issuer bankruptcies and defaults differently
than U.S. law would. Securities markets in emerging market countries are also
relatively small and have substantially lower trading volumes. Securities of
issuers in emerging market countries may be more volatile and less liquid than
securities of issuers in foreign countries with more developed economies or
markets and the situation may require that the Fund fair value its holdings in
those countries.
Securities
of issuers traded on foreign exchanges may be suspended, either by the issuers
themselves, by an exchange, or by governmental authorities. The likelihood of
such suspensions may be higher for securities of issuers in emerging or
less-developed market countries than in countries with more developed markets.
Trading suspensions may be applied from time to time to the securities of
individual issuers for reasons specific to that issuer, or may be applied
broadly by exchanges or governmental authorities in response to market events.
Suspensions may last for significant periods of time, during which trading in
the securities and in instruments that reference the securities, such as
derivative instruments, may be halted. In the event that the Fund holds material
positions in such suspended securities or instruments, the Fund’s ability to
liquidate its positions or provide liquidity to investors may be compromised and
the Fund could incur significant losses.
From time to
time, based on market or economic conditions, the Fund may invest a significant
portion of its assets in one country or geographic region. If the Fund does so,
there is a greater risk that economic, political, regulatory, diplomatic, social
and environmental conditions in that particular country or geographic region may
have a significant impact on the Fund’s performance and that the Fund’s
performance will be more volatile than the performance of more geographically
diversified funds.
Growth
Stock Risk. Because the prices of most growth stocks are based on future
expectations, these stocks tend to be more sensitive than value stocks to bad
economic news and negative earnings surprises. When these expectations are not
met or decrease, the prices of these stocks may decline, sometimes sharply, even
if earnings showed an absolute increase. The Fund attempts to lessen the risk of
such losses by seeking growth stocks that sell at what the adviser believes are
attractive prices. If the adviser is incorrect in its assessment of a stock’s
value, this may negatively impact the Fund. Bad economic news or changing
investor perceptions may adversely affect growth stocks across several sectors
and industries simultaneously.
Issuer-Specific
Risk. An individual security may be more volatile, and may perform
differently, than the market as a whole.
Liquidity
Risk. From time to time, the trading market for a particular investment in
which the Fund invests, or a particular type of instrument in which the Fund is
invested, may become less liquid or even illiquid. Illiquid investments
frequently can be more difficult to purchase or sell at an advantageous price or
time, and there is a greater risk that the investments may not be sold for the
price at which the Fund is carrying them. Certain investments that were liquid
when the Fund purchased them may become illiquid, sometimes abruptly.
Additionally, market closures due to holidays or other factors may render a
security or group of securities (e.g., securities tied to a particular country
or geographic region) illiquid for a period of time. An inability to sell a
portfolio position can adversely affect the Fund’s value or prevent the Fund
from being able to take advantage of other investment opportunities. Market
prices for such securities or other investments may be volatile. During periods
of substantial market volatility, an investment or even an entire market segment
may become illiquid, sometimes abruptly, which can adversely affect the Fund’s
ability to limit losses.
Unexpected
episodes of illiquidity, including due to market or political factors,
instrument or issuer-specific factors and/or unanticipated outflows or other
factors, may limit the Fund’s ability to pay redemption proceeds within the
allowable time period. To meet redemption requests during periods of
illiquidity, the Fund may be forced to sell securities at an unfavorable time
and/or under unfavorable conditions.
Market
Volatility Risk. Markets may be volatile and values of individual securities
and other investments, including those of a particular type, may decline
significantly in response to adverse issuer, political, regulatory, market,
economic or other developments that may cause broad changes in market value,
public perceptions concerning these developments, and adverse
41
International Small Cap Fund
investor
sentiment or publicity. Geopolitical and other risks, including environmental
and public health risks may add to instability in world economies and markets
generally. Changes in value may be temporary or may last for extended periods.
If the Fund sells a portfolio position before it reaches its market peak, it may
miss out on opportunities for better performance.
Recent
Market Conditions. Both U.S. and international markets have experienced
significant volatility in recent months and years. As a result of such
volatility, investment returns may fluctuate significantly. National economies
are substantially interconnected, as are global financial markets, which creates
the possibility that conditions in one country or region might adversely impact
issuers in a different country or region. However, the interconnectedness of
economies and/or markets may be diminishing, which may impact such economies and
markets in ways that cannot be foreseen at this time.
Although
interest rates were unusually low in recent years in the U.S. and abroad,
recently, the Federal Reserve and certain foreign central banks raised interest
rates as part of their efforts to address rising inflation. It is difficult to
accurately predict the pace at which interest rates might increase, the timing,
frequency or magnitude of any such increases in interest rates, or when such
increases might stop. Additionally, various economic and political factors could
cause the Federal Reserve or other foreign central banks to change their
approach in the future and such actions may result in an economic slowdown both
in the U.S. and abroad. Unexpected changes in interest rates could lead to
market volatility or reduce liquidity in certain sectors of the market.
Deteriorating economic fundamentals may, in turn, increase the risk of default
or insolvency of particular issuers, negatively impact market value, cause
credit spreads to widen, and reduce bank balance sheets. Any of these could
cause an increase in market volatility, or reduce liquidity across various
markets or decrease confidence in the markets.
Some
countries, including the U.S., have adopted more protectionist trade policies.
Slowing global economic growth, the rise in protectionist trade policies,
changes to some major international trade agreements, risks associated with the
trade agreement between the United Kingdom and the European Union, and the risks
associated with trade negotiations between the U.S. and China, could affect the
economies of many nations in ways that cannot necessarily be foreseen at the
present time. In addition, the current strength of the U.S. dollar may decrease
foreign demand for U.S. assets, which could have a negative impact on certain
issuers and/or industries.
Regulators
in the U.S. have proposed and adopted a number of changes to regulations
involving the markets and issuers, some of which apply to the Fund. The full
effect of various newly adopted regulations is not currently known.
Additionally, it is not currently known whether any of the proposed regulations
will be adopted. However, due to the scope of regulations being proposed and
adopted, certain of these changes to regulation could limit the Fund’s ability
to pursue its investment strategies or make certain investments, may make it
more costly for it to operate, or adversely impact performance.
Tensions,
war, or open conflict between nations, such as between Russia and Ukraine, in
the Middle East, or in eastern Asia could affect the economies of many nations,
including the United States. The duration of ongoing hostilities and any
sanctions and related events cannot be predicted. Those events present material
uncertainty and risk with respect to markets globally and the performance of the
Fund and its investments or operations could be negatively impacted.
High public
debt in the U.S. and other countries creates ongoing systemic and market risks
and policymaking uncertainty. There is no assurance that the U.S. Congress will
act to raise the nation’s debt ceiling; a failure to do so could cause market
turmoil and substantial investment risks that cannot now be fully predicted.
Unexpected political, regulatory and diplomatic events within the U.S. and
abroad may affect investor and consumer confidence and may adversely impact
financial markets and the broader economy.
There is
widespread concern about the potential effects of global climate change on
property and security values. Certain issuers, industries and regions may be
adversely affected by the impact of climate change in ways that cannot be
foreseen. The impact of legislation, regulation and international accords
related to climate change may negatively impact certain issuers and/or
industries.
Redemption
Risk. The Fund may experience periods of large or frequent redemptions that
could cause the Fund to sell assets at inopportune times, which could have a
negative impact on the Fund’s overall liquidity, or at a loss or depressed
value. Redemption risk is greater to the extent that one or more investors or
intermediaries control a large percentage of investments in the Fund and the
risk is heightened during periods of declining or illiquid markets. Large
redemptions could hurt the Fund’s performance, increase transaction costs, and
create adverse tax consequences.
Sector
Risk. From time to time, based on market or economic conditions, the Fund
may have significant positions in one or more sectors of the market. To the
extent the Fund invests more heavily in particular sectors, its performance will
be especially sensitive to developments that significantly affect those sectors.
Individual sectors or sub-sectors may be more volatile, and may perform
differently, than the broader market. The industries that constitute a sector
may all react in the same way to economic, political or regulatory
events.
42
International Small Cap Fund
Securities
Lending Risk. Securities lending involves a possible delay in recovery of
the loaned securities or a possible loss of rights in the collateral should the
borrower fail financially. The Fund could also lose money if the value of the
collateral decreases.
Small-
and Mid-Cap Companies Risk. At times, small- and mid-cap companies may be
out of favor with investors. Compared to larger companies, small- and mid-cap
companies may depend on a more limited management group, may have a shorter
history of operations, less publicly available information, less stable
earnings, and limited product lines, markets or financial resources. The
securities of small- and mid-cap companies are often more volatile, which at
times can be rapid and unpredictable, and less liquid than the securities of
larger companies and may be more affected than other types of securities by the
underperformance of a sector, during market downturns, or by adverse publicity
and investor perceptions. To the extent the Fund holds securities of mid-cap
companies, the Fund will be subject to their risks.
Value
Stock Risk. Value stocks may remain undervalued for extended periods of
time, may decrease in value during a given period, may not ever realize what the
portfolio management team believes to be their full value, or the portfolio
management team’s assumptions about intrinsic value or potential for
appreciation may be incorrect. This may happen, among other reasons, because of
a failure to anticipate which stocks or industries would benefit from changing
market or economic conditions or investor preferences.
A summary
of the Fund’s additional principal investment risks is as
follows:
Risk of
Increase in Expenses. A decline in the Fund’s average net assets during the
current fiscal year due to market volatility or other factors could cause the
Fund’s expenses for the current fiscal year to be higher than the expense
information presented in “Fees and Expenses.”
Operational
and Cybersecurity Risk. The Fund and its service providers, and your ability
to transact with the Fund, may be negatively impacted due to operational matters
arising from, among other problems, human errors, systems and technology
disruptions or failures, or cybersecurity incidents. Cybersecurity incidents may
allow an unauthorized party to gain access to fund assets, customer data, or
proprietary information, or cause the Fund or its service providers, as well as
the securities trading venues and their service providers, to suffer data
corruption or lose operational functionality. Cybersecurity incidents can result
from deliberate attacks or unintentional events. It is not possible for the
Manager or the other Fund service providers to identify all of the cybersecurity
or other operational risks that may affect the Fund or to develop processes and
controls to completely eliminate or mitigate their occurrence or effects. Most
issuers in which the Fund invests are heavily dependent on computers for data
storage and operations, and require ready access to the internet to conduct
their business. Thus, cybersecurity incidents could also affect issuers of
securities in which the Fund invests, leading to significant loss of
value.
Risk
Management. Risk is an essential part of investing. No risk management
program can eliminate the Fund’s exposure to adverse events; at best, it may
only reduce the possibility that the Fund will be affected by such events, and
especially those risks that are not intrinsic to the Fund’s investment program.
The Fund could experience losses if judgments about risk prove to be
incorrect.
Valuation
Risk. The Fund may not be able to sell an investment at the price at which
the Fund has valued the investment. Such differences could be significant,
particularly for illiquid securities and securities that trade in relatively
thin markets and/or markets that experience extreme volatility. If market or
other conditions make it difficult to value an investment, the Fund may be
required to value such investments using more subjective methods, known as fair
value methodologies. Using fair value methodologies to price investments may
result in a value that is different from an investment’s most recent price and
from the prices used by other funds to calculate their NAVs. The Fund uses
pricing services to provide values for certain securities and there is no
assurance that the Fund will be able to sell an investment at the price
established by such pricing services. The Fund’s ability to value its
investments in an accurate and timely manner may be impacted by technological
issues and/or errors by third party service providers, such as pricing services
or accounting agents.
PERFORMANCE
The
following bar chart and table provide an indication of the risks of investing in
the Fund. The bar chart
shows how the Fund’s performance has varied from year to year. The table below
the bar chart shows what the returns would equal if you averaged out actual
performance over various lengths of time and compares the returns with the
returns of a broad-based market index. The index, which
is described in “Descriptions of Indices” in the prospectus, has characteristics
relevant to the Fund’s investment strategy.
Returns
would have been lower if the Manager had not reimbursed certain expenses and/or
waived a portion of the investment management fees during certain of the periods
shown.
43
International Small Cap Fund
Past performance (before and
after taxes) is not a prediction of future results. Visit
www.nb.com
or call 800-366-6264 for
updated performance information.
year-by-year % Returns as of 12/31 each
year
Years |
Returns |
2013 |
0.00% |
2014 |
0.00% |
2015 |
0.00% |
2016 |
0.00% |
2017 |
37.02% |
2018 |
-20.76% |
2019 |
29.46% |
2020 |
21.99% |
2021 |
16.35% |
2022 |
-26.18% |
Best
quarter: Q2 2020 21.08%
Worst
quarter: Q1 2020 -23.24%
Year to Date performance as
of: 9/30/2023 -1.93%
average annual total % returns as of
12/31/22
International Small Cap
Fund |
|
1
Year |
|
5
Years |
|
Since
Inception (12/8/2016) |
Return
Before Taxes |
|
-26.18 |
|
1.45 |
|
7.01 |
Return
After Taxes on Distributions |
|
-27.04 |
|
0.66 |
|
5.88 |
Return
After Taxes on Distributions and Sale of Fund Shares |
|
-14.90 |
|
1.16 |
|
5.40 |
MSCI
EAFE® Small Cap Index (Net) (reflects reinvested dividends
net of withholding taxes, but reflects no deduction for fees, expenses or
taxes) |
|
-21.39 |
|
-0.05 |
|
5.00 |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local
taxes. Actual after-tax returns depend on an investor’s
tax situation and may differ from those shown. After-tax returns are not
relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. Return After Taxes on
Distributions and Sale of Fund Shares may be higher than other returns for the
same period due to a tax benefit of realizing a capital loss upon the sale of
Fund shares.
INVESTMENT
MANAGER
Neuberger
Berman Investment Advisers LLC (“Manager”) is the Fund’s investment
manager.
PORTFOLIO
MANAGER
The Fund is
managed by David Bunan (Managing Director of the Manager). He has managed the
Fund since its inception in 2016.
Buying
and Selling Shares
You may
purchase, redeem (sell) or exchange shares of the Fund on any day the New York
Stock Exchange is open, at the Fund’s net asset value per share next determined
after your order is received in proper form. Shares of the Fund generally are
available only through certain investment providers, such as banks, brokerage
firms, retirement plan administrators, and financial advisers. Contact any
investment provider authorized to sell the Fund’s shares. See “Maintaining Your
Account” in the prospectus for eligibility requirements for purchases of Class
R6 shares.
For certain
institutional investors, shares of the Fund may be available directly from
Neuberger Berman BD LLC by regular, first class mail (Neuberger Berman Funds,
P.O. Box 219189, Kansas City, MO 64121-9189), by express delivery, registered
mail, or certified mail (Neuberger Berman Funds, 430 West 7th Street,
Suite 219189, Kansas City, MO 64105-1407), or by wire, fax,
44
International Small Cap Fund
telephone,
or exchange (call 800-366-6264 for instructions). See “Maintaining Your Account”
in the prospectus for eligibility requirements for direct purchases of shares
and for instructions on buying and redeeming (selling) shares
directly.
The Fund
does not impose minimum purchase requirements for Class R6 shares. However, you
should contact your investment provider to determine whether it imposes minimum
purchase requirements.
Tax
Information
Unless you
invest in the Fund through a tax-advantaged retirement plan or account or are a
tax-exempt investor, you will be subject to tax on Fund distributions to you of
ordinary income and/or net capital gains. Those distributions generally are not
taxable to such a plan or account or a tax-exempt investor, although withdrawals
from certain retirement plans and accounts generally are subject to federal
income tax.
Payments
to Investment Providers and Other Financial Intermediaries
If you
purchase shares of another class of the Fund through an investment provider or
other financial intermediary, such as a bank, brokerage firm, workplace
retirement program, or financial adviser (who may be affiliated with Neuberger
Berman), the Fund and/or Neuberger Berman BD LLC and/or its affiliates may pay
the intermediary for the sale of shares of those other classes of the Fund and
related services. These payments may create a conflict of interest by
influencing the investment provider or other financial intermediary and its
employees to recommend the Fund or those other classes of the Fund over another
investment. Neuberger Berman does not provide ongoing payments to third
parties for any record-keeping or administrative services in connection with
investments in Class R6. To the extent the Fund makes such payments with
respect to another class, they can come only out of the assets of that other
class.
45
International Small Cap Fund
Neuberger Berman Intrinsic Value Fund
Class R6
Shares (NRINX)
GOAL
The Fund
seeks long-term growth of capital.
Fees and
Expenses
These tables
describe the fees and expenses that you may pay if you buy, hold or sell shares
of the Fund. You may pay other fees, such as brokerage commissions and other
fees to financial intermediaries, which are not reflected in the table and
example below.
Shareholder Fees (fees paid
directly from your investment) |
|
None |
Annual Fund Operating Expenses
(expenses that you pay each year as a % of the value of your
investment) |
|
|
Management
fees |
|
0.79 |
Distribution
and/or shareholder service (12b-1) fees |
|
None |
Other
expenses |
|
0.06 |
Total
annual operating expenses |
|
0.85 |
Expense
Example
The expense
example can help you compare costs among mutual funds. The example assumes that
you invested $10,000 for the periods shown, that you redeemed all of your shares
at the end of those periods, that the Fund earned a hypothetical 5% total return
each year, and that the Fund’s expenses were those in the table. Actual
performance and expenses may be higher or lower.
|
|
1
Year |
|
3
Years |
|
5
Years |
|
10
Years |
Class
R6 |
|
$87 |
|
$271 |
|
$471 |
|
$1,049 |
Portfolio
Turnover
The Fund
pays transaction costs, such as commissions, when it buys and sells securities
(or “turns over” its portfolio). A higher portfolio turnover rate may indicate
higher transaction costs and may result in higher taxes when Fund shares are
held in a taxable account. These costs, which are not reflected in annual
operating expenses or in the example, affect the Fund’s performance. During the
most recent fiscal year, the Fund’s portfolio turnover rate was 10% of the average
value of its portfolio.
Principal Investment
Strategies
To pursue
its goal, the Fund invests mainly in common stocks of small- and
mid-capitalization companies, which it defines as those companies with a total
market value between $50 million and $10 billion at the time the Fund first
invests in them. The Fund may continue to hold or add to a position in a stock
after the company’s market value has increased above or decreased below this
range.
The Fund’s
strategy consists of using a bottom-up, research driven approach to identify
stocks of companies that are available at market prices below the Portfolio
Managers’ estimate of their intrinsic value and that the Portfolio Managers
believe have the potential for appreciation in value over time. The Portfolio
Managers’ estimate of a company’s intrinsic value represents their view of the
company’s true, long-term economic value, the market’s view of which may be
currently distorted by market inefficiencies. The intrinsic value estimate
represents what the Portfolio Managers believe a company could be worth if it is
acquired, if its profitability returns to its long-term average level, or if its
valuation moves in line with those companies that the Portfolio Managers see as
its publicly traded peers.
The
Portfolio Managers believe that while markets are often efficient, certain
investment opportunities tend to be mispriced due to market inefficiencies. For
example, market inefficiencies may exist at times in the small capitalization
segment of the market due to a lack of widely available research on these
companies. The Portfolio Managers attempt to exploit these market inefficiencies
and look for opportunities to invest in companies they believe to be
undervalued, such as companies with the following characteristics:
■ |
Complex
Companies: These companies typically have multiple lines of business
that are in different industries or sectors and/or that have different
growth rates and profitability characteristics. |
■ |
Cyclical
Companies: These companies typically have ebbs and flows in their
business depending on demand patterns for their products, the length of
product cycles, or other transient factors. |
■ |
Companies
in a Period of Interrupted Growth: Typically, these are companies in
attractive, high growth markets that have suffered what the Portfolio
Managers believe is a temporary setback and/or are in transition to a more
mature, lower growth business model that focuses more on current earnings
than on rapid growth. |
In seeking
to identify these types of companies, the Portfolio Managers perform an initial
screening to identify those companies that have stock prices that are trailing
the performance of the overall market and that the Portfolio Managers believe
are attractive relative to current cash flows. Next, the Portfolio Managers
establish an estimate of a company’s intrinsic value. The Portfolio Managers
will invest in a company’s stock on the basis of the company’s discount to the
Portfolio Managers’ estimate of intrinsic value and the Portfolio Managers’
belief in its potential for appreciation over time. In addition, the Portfolio
Managers may invest in anticipation of a catalyst, such as a merger,
liquidation, spin off, or management change. The Portfolio Managers will
typically visit a company and interview its management team to help understand
management’s incentives (such as equity ownership in the company and
compensation plans), the merits of its strategic plan, and other factors that
have the potential to increase the value of the company’s stock. The Portfolio
Managers also integrate governance factors into the investment process. They
seek to invest in companies that have effective and independent boards composed
of diverse, and currently active, CEOs and other C-level executives. They look
for companies where management and shareholder interests are aligned (often
through high ownership of the company by management), with long-term incentive
plans and CEO and management compensation and succession plans in place. The
Portfolio Managers also seek out companies that have full transparency and
disclosure, effective capital deployment strategies and value enhancing merger
and acquisition policies. When appropriate, the Portfolio Managers may engage
with portfolio companies regarding directors, strategy and financing in an
effort to enhance shareholder value. The Portfolio Managers may also engage on
financially material environmental and social issues.
The
Portfolio Managers establish an intrinsic value for a company’s stock when it is
purchased and then continue to evaluate the company’s stock price versus their
estimate of its intrinsic value to determine whether to maintain, add to, reduce
or eliminate the position. The Portfolio Managers typically reduce or eliminate
a position in a company’s stock if the stock’s price appreciates and the
company’s discount to their estimate of its intrinsic value narrows. The
Portfolio Managers’ decision to reduce or eliminate a position in a particular
stock may also be driven by their belief that another company’s stock has a
wider discount to their estimate of its intrinsic value. Changes in a company’s
management or corporate strategy, or the failure of a company to perform as
expected, may also cause the Portfolio Managers to reduce or eliminate a
position in that company’s stock.
The Fund may
invest in restricted securities, including private placements, which are
securities that are subject to legal restrictions on their sale and may not be
sold to the public unless registered under the applicable securities law or
pursuant to an applicable exemption.
At times,
the Portfolio Managers may emphasize certain sectors that they believe will
benefit from market or economic trends.
PRINCIPAL INVESTMENT
RISKS
Most of the
Fund’s performance depends on what happens in the stock market, the Portfolio
Managers’ evaluation of those developments, and the success of the Portfolio
Managers in implementing the Fund’s investment strategies. The market’s behavior
can be difficult to predict, particularly in the short term. There can be no
guarantee that the Fund will achieve its goal. The Fund may take temporary
defensive and cash management positions; to the extent it does, it will not be
pursuing its principal investment strategies.
The actual
risk exposure taken by the Fund in its investment program will vary over time,
depending on various factors including the Portfolio Managers’ evaluation of
issuer, political, regulatory, market, or economic developments. There can be no
guarantee that the Portfolio Managers will be successful in their attempts to
manage the risk exposure of the Fund or will appropriately evaluate or weigh the
multiple factors involved in investment decisions, including issuer, market
and/or instrument-specific analysis and valuation.
The Fund is a mutual fund, not a bank deposit, and is not
guaranteed or insured by the Federal Deposit Insurance Corporation or any other
government agency. The value of your investment may fall, sometimes sharply,
and you could lose money by investing in the
Fund.
Each of the
following risks, which are described in alphabetical order and not in order of
any presumed importance, can significantly affect the Fund’s performance. The
relative importance of, or potential exposure as a result of, each of these
risks will vary based on market and other investment-specific
considerations.
Catalyst
Risk. Investing in companies in anticipation of a catalyst carries the risk
that the catalyst may not happen as anticipated, or the market may react to the
catalyst differently than expected.
Issuer-Specific
Risk. An individual security may be more volatile, and may perform
differently, than the market as a whole.
Liquidity
Risk. From time to time, the trading market for a particular investment in
which the Fund invests, or a particular type of instrument in which the Fund is
invested, may become less liquid or even illiquid. Illiquid investments
frequently can be more difficult to purchase or sell at an advantageous price or
time, and there is a greater risk that the investments may not be sold for the
price at which the Fund is carrying them. Certain investments that were liquid
when the Fund purchased them may become illiquid, sometimes abruptly.
Additionally, market closures due to holidays or other factors may render a
security or group of securities (e.g., securities tied to a particular country
or geographic region) illiquid for a period of time. An inability to sell a
portfolio position can adversely affect the Fund’s value or prevent the Fund
from being able to take advantage of other investment opportunities. Market
prices for such securities or other investments may be volatile. During periods
of substantial market volatility, an investment or even an entire market segment
may become illiquid, sometimes abruptly, which can adversely affect the Fund’s
ability to limit losses.
Unexpected
episodes of illiquidity, including due to market or political factors,
instrument or issuer-specific factors and/or unanticipated outflows or other
factors, may limit the Fund’s ability to pay redemption proceeds within the
allowable time period. To meet redemption requests during periods of
illiquidity, the Fund may be forced to sell securities at an unfavorable time
and/or under unfavorable conditions.
Market
Volatility Risk. Markets may be volatile and values of individual securities
and other investments, including those of a particular type, may decline
significantly in response to adverse issuer, political, regulatory, market,
economic or other developments that may cause broad changes in market value,
public perceptions concerning these developments, and adverse investor sentiment
or publicity. Geopolitical and other risks, including environmental and public
health risks may add to instability in world economies and markets generally.
Changes in value may be temporary or may last for extended periods. If the Fund
sells a portfolio position before it reaches its market peak, it may miss out on
opportunities for better performance.
Private
Placements and Other Restricted Securities Risk. Private placements and
other restricted securities, including securities for which Fund management has
material non-public information, are securities that are subject to legal and/or
contractual restrictions on their sales. These securities may not be sold to the
public unless certain conditions are met, which may include registration under
the applicable securities laws. As a result of the absence of a public trading
market, the prices of these securities may be more difficult to determine than
publicly traded securities and these securities may involve heightened risk as
compared to investments in securities of publicly traded companies. Private
placements and other restricted securities may be illiquid, and it frequently
can be difficult to sell them at a time when it may otherwise be desirable to do
so or the Fund may be able to sell them only at prices that are less than what
the Fund regards as their fair market value. Transaction costs may be higher for
these securities. In addition, the Fund may get only limited information about
the issuer of a private placement or other restricted security.
Recent
Market Conditions. Both U.S. and international markets have experienced
significant volatility in recent months and years. As a result of such
volatility, investment returns may fluctuate significantly. National economies
are substantially interconnected, as are global financial markets, which creates
the possibility that conditions in one country or region might adversely impact
issuers in a different country or region. However, the interconnectedness of
economies and/or markets may be diminishing, which may impact such economies and
markets in ways that cannot be foreseen at this time.
Although
interest rates were unusually low in recent years in the U.S. and abroad,
recently, the Federal Reserve and certain foreign central banks raised interest
rates as part of their efforts to address rising inflation. It is difficult to
accurately predict the pace at which interest rates might increase, the timing,
frequency or magnitude of any such increases in interest rates, or when such
increases might stop. Additionally, various economic and political factors could
cause the Federal Reserve or other foreign central banks to change their
approach in the future and such actions may result in an economic slowdown both
in the U.S. and abroad. Unexpected changes in interest rates could lead to
market volatility or reduce liquidity in certain sectors of the market.
Deteriorating economic fundamentals may, in turn, increase the risk of default
or insolvency of particular issuers, negatively impact market value, cause
credit spreads to widen, and reduce bank balance sheets. Any of these could
cause an increase in market volatility, or reduce liquidity across various
markets or decrease confidence in the markets.
Some
countries, including the U.S., have adopted more protectionist trade policies.
Slowing global economic growth, the rise in protectionist trade policies,
changes to some major international trade agreements, risks associated with the
trade agreement between the United Kingdom and the European Union, and the risks
associated with trade negotiations between the U.S. and
China, could
affect the economies of many nations in ways that cannot necessarily be foreseen
at the present time. In addition, the current strength of the U.S. dollar may
decrease foreign demand for U.S. assets, which could have a negative impact on
certain issuers and/or industries.
Regulators
in the U.S. have proposed and adopted a number of changes to regulations
involving the markets and issuers, some of which apply to the Fund. The full
effect of various newly adopted regulations is not currently known.
Additionally, it is not currently known whether any of the proposed regulations
will be adopted. However, due to the scope of regulations being proposed and
adopted, certain of these changes to regulation could limit the Fund’s ability
to pursue its investment strategies or make certain investments, may make it
more costly for it to operate, or adversely impact performance.
Tensions,
war, or open conflict between nations, such as between Russia and Ukraine, in
the Middle East, or in eastern Asia could affect the economies of many nations,
including the United States. The duration of ongoing hostilities and any
sanctions and related events cannot be predicted. Those events present material
uncertainty and risk with respect to markets globally and the performance of the
Fund and its investments or operations could be negatively impacted.
High public
debt in the U.S. and other countries creates ongoing systemic and market risks
and policymaking uncertainty. There is no assurance that the U.S. Congress will
act to raise the nation’s debt ceiling; a failure to do so could cause market
turmoil and substantial investment risks that cannot now be fully predicted.
Unexpected political, regulatory and diplomatic events within the U.S. and
abroad may affect investor and consumer confidence and may adversely impact
financial markets and the broader economy.
There is
widespread concern about the potential effects of global climate change on
property and security values. Certain issuers, industries and regions may be
adversely affected by the impact of climate change in ways that cannot be
foreseen. The impact of legislation, regulation and international accords
related to climate change may negatively impact certain issuers and/or
industries.
Redemption
Risk. The Fund may experience periods of large or frequent redemptions that
could cause the Fund to sell assets at inopportune times, which could have a
negative impact on the Fund’s overall liquidity, or at a loss or depressed
value. Redemption risk is greater to the extent that one or more investors or
intermediaries control a large percentage of investments in the Fund and the
risk is heightened during periods of declining or illiquid markets. Large
redemptions could hurt the Fund’s performance, increase transaction costs, and
create adverse tax consequences.
Sector
Risk. From time to time, based on market or economic conditions, the Fund
may have significant positions in one or more sectors of the market. To the
extent the Fund invests more heavily in particular sectors, its performance will
be especially sensitive to developments that significantly affect those sectors.
Individual sectors or sub-sectors may be more volatile, and may perform
differently, than the broader market. The industries that constitute a sector
may all react in the same way to economic, political or regulatory
events.
Small-
and Mid-Cap Companies Risk. At times, small- and mid-cap companies may be
out of favor with investors. Compared to larger companies, small- and mid-cap
companies may depend on a more limited management group, may have a shorter
history of operations, less publicly available information, less stable
earnings, and limited product lines, markets or financial resources. The
securities of small- and mid-cap companies are often more volatile, which at
times can be rapid and unpredictable, and less liquid than the securities of
larger companies and may be more affected than other types of securities by the
underperformance of a sector, during market downturns, or by adverse publicity
and investor perceptions.
Value
Stock Risk. Value stocks may remain undervalued for extended periods of
time, may decrease in value during a given period, may not ever realize what the
portfolio management team believes to be their full value or intrinsic value, or
the portfolio management team’s assumptions about intrinsic value or potential
for appreciation may be incorrect. This may happen, among other reasons, because
of a failure to anticipate which stocks or industries would benefit from
changing market or economic conditions or investor preferences.
A summary
of the Fund’s additional principal investment risks is as
follows:
Risk of
Increase in Expenses. A decline in the Fund’s average net assets during the
current fiscal year due to market volatility or other factors could cause the
Fund’s expenses for the current fiscal year to be higher than the expense
information presented in “Fees and Expenses.”
Operational
and Cybersecurity Risk. The Fund and its service providers, and your ability
to transact with the Fund, may be negatively impacted due to operational matters
arising from, among other problems, human errors, systems and technology
disruptions or failures, or cybersecurity incidents. Cybersecurity incidents may
allow an unauthorized party to gain access to fund assets, customer data, or
proprietary information, or cause the Fund or its service providers, as well as
the securities trading venues
and their
service providers, to suffer data corruption or lose operational functionality.
Cybersecurity incidents can result from deliberate attacks or unintentional
events. It is not possible for the Manager or the other Fund service providers
to identify all of the cybersecurity or other operational risks that may affect
the Fund or to develop processes and controls to completely eliminate or
mitigate their occurrence or effects. Most issuers in which the Fund invests are
heavily dependent on computers for data storage and operations, and require
ready access to the internet to conduct their business. Thus, cybersecurity
incidents could also affect issuers of securities in which the Fund invests,
leading to significant loss of value.
Risk
Management. Risk is an essential part of investing. No risk management
program can eliminate the Fund’s exposure to adverse events; at best, it may
only reduce the possibility that the Fund will be affected by such events, and
especially those risks that are not intrinsic to the Fund’s investment program.
The Fund could experience losses if judgments about risk prove to be
incorrect.
Valuation
Risk. The Fund may not be able to sell an investment at the price at which
the Fund has valued the investment. Such differences could be significant,
particularly for illiquid securities and securities that trade in relatively
thin markets and/or markets that experience extreme volatility. If market or
other conditions make it difficult to value an investment, the Fund may be
required to value such investments using more subjective methods, known as fair
value methodologies. Using fair value methodologies to price investments may
result in a value that is different from an investment’s most recent price and
from the prices used by other funds to calculate their NAVs. The Fund uses
pricing services to provide values for certain securities and there is no
assurance that the Fund will be able to sell an investment at the price
established by such pricing services. The Fund’s ability to value its
investments in an accurate and timely manner may be impacted by technological
issues and/or errors by third party service providers, such as pricing services
or accounting agents.
PERFORMANCE
The
following bar chart and table provide an indication of the risks of investing in
the Fund. The bar chart
shows how the Fund’s performance has varied from year to year. The table below the bar chart shows
what the returns would equal if you averaged out actual performance over various
lengths of time and compares the returns with the returns of one or more
broad-based market indices. The
indices, which are described in “Descriptions of Indices” in the prospectus,
have characteristics relevant to the Fund’s investment strategy.
As of
May 7, 2010, the Fund became the successor to DJG Small Cap Value Fund
L.P., an unregistered limited partnership (“DJG Fund”); DJG Fund was the
successor to The DJG Small Cap Value Fund, an unregistered commingled investment
account (“DJG Account”). The performance after September 12, 2008 is that
of DJG Fund and the performance from July 8, 1997 (the Fund’s commencement
of operations) to September 11, 2008 is that of DJG Account. On May 7,
2010, the DJG Fund transferred its assets to the Fund in exchange for the Fund’s
Institutional Class shares. The investment policies, objectives, guidelines and
restrictions of the Fund are in all material respects equivalent to those of DJG
Fund and DJG Account (the “Predecessors”). As a mutual fund registered under the
Investment Company Act of 1940, the Fund is subject to certain restrictions
under the 1940 Act and the Internal Revenue Code to which the Predecessors were
not subject. Had the Predecessors been registered under the 1940 Act and been
subject to the provisions of the 1940 Act and the Code, their investment
performance may have been adversely affected. The performance information
reflects the actual expenses of the Predecessors.
The
Predecessors did not have distribution policies. The Predecessors were an
unregistered limited partnership and an unregistered commingled investment
account, did not qualify as regulated investment companies for federal income
tax purposes and did not pay dividends or other distributions. As a result of
the different tax treatment, we are unable to show the after-tax returns for the
Fund prior to May 7, 2010.
The following
performance prior to May 7, 2010 is that of the Fund’s Predecessors, and
that of the Fund’s Institutional Class from May 7, 2010 to January 18,
2019. Because the Institutional Class has higher expenses than Class R6, its
performance typically would have been lower than that of Class
R6.
Returns
would have been lower/higher if the Manager had not reimbursed/recouped certain
expenses and/or waived a portion of the investment management fees during
certain of the periods shown.
Past performance (before and
after taxes) is not a prediction of future results. Visit
www.nb.com
or call 800-366-6264 for
updated performance information.
year-by-year % Returns as of 12/31 each
year
Years |
Returns |
2013 |
39.68% |
2014 |
5.37% |
2015 |
-1.90% |
2016 |
12.14% |
2017 |
16.72% |
2018 |
-10.27% |
2019 |
25.12% |
2020 |
27.22% |
2021 |
26.60% |
2022 |
-20.02% |
Best
quarter: Q4 2020 38.75%
Worst
quarter: Q1 2020 -30.69%
Year to Date performance as
of: 9/30/2023 4.64%
average annual total % returns as of
12/31/22
Intrinsic Value
Fund |
|
1
Year |
|
5
Years |
|
10
Years |
|
Since
Inception (7/8/1997) |
Return
Before Taxes |
|
-20.02 |
|
7.66 |
|
10.58 |
|
10.64 |
Return
After Taxes on Distributions |
|
-20.75 |
|
|
9.27 |
|
N/A |
Return
After Taxes on Distributions and Sale of Fund Shares |
|
-11.41 |
|
5.80 |
|
8.43 |
|
N/A |
Russell
2000® Value Index (reflects no deduction for
fees, expenses or taxes) |
|
-14.48 |
|
4.13 |
|
8.48 |
|
8.12 |
Russell
2000® Index (reflects no deduction for
fees, expenses or taxes) |
|
-20.44 |
|
4.13 |
|
9.01 |
|
7.43 |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local
taxes. Actual after-tax returns depend on an investor’s
tax situation and may differ from those shown. After-tax returns are not
relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. Return After Taxes on
Distributions and Sale of Fund Shares may be higher than other returns for the
same period due to a tax benefit of realizing a capital loss upon the sale of
Fund shares.
INVESTMENT
MANAGER
Neuberger
Berman Investment Advisers LLC (“Manager”) is the Fund’s investment
manager.
PORTFOLIO
MANAGERS
The Fund is
co-managed by Benjamin H. Nahum (Managing Director of the Manager), James F.
McAree (Managing Director of the Manager) and Amit Solomon (Managing Director of
the Manager). They have managed the Fund since its inception in 2010. Mr. Nahum
served as the portfolio manager of the Fund’s Predecessors from 1997 to 2010,
and Mr. McAree and Mr. Solomon served as research analysts to the Fund’s
Predecessors from 2005 and 2002, respectively, to 2010.
Buying
and Selling Shares
You may
purchase, redeem (sell) or exchange shares of the Fund on any day the New York
Stock Exchange is open, at the Fund’s net asset value per share next determined
after your order is received in proper form. Shares of the Fund generally are
available only through certain investment providers, such as banks, brokerage
firms, retirement plan administrators, and financial advisers. Contact any
investment provider authorized to sell the Fund’s shares. See “Maintaining Your
Account” in the prospectus for eligibility requirements for purchases of Class
R6 shares.
For certain
institutional investors, shares of the Fund may be available directly from
Neuberger Berman BD LLC by regular, first class mail (Neuberger Berman Funds,
P.O. Box 219189, Kansas City, MO 64121-9189), by express delivery, registered
mail, or certified mail (Neuberger Berman Funds, 430 West 7th Street,
Suite 219189, Kansas City, MO 64105-1407), or by wire, fax, telephone, or
exchange (call 800-366-6264 for instructions). See “Maintaining Your Account” in
the prospectus for eligibility requirements for direct purchases of shares and
for instructions on buying and redeeming (selling) shares directly.
The Fund
does not impose minimum purchase requirements for Class R6 shares. However, you
should contact your investment provider to determine whether it imposes minimum
purchase requirements.
Tax
Information
Unless you
invest in the Fund through a tax-advantaged retirement plan or account or are a
tax-exempt investor, you will be subject to tax on Fund distributions to you of
ordinary income and/or net capital gains. Those distributions generally are not
taxable to such a plan or account or a tax-exempt investor, although withdrawals
from certain retirement plans and accounts generally are subject to federal
income tax.
Payments
to Investment Providers and Other Financial Intermediaries
If you
purchase shares of another class of the Fund through an investment provider or
other financial intermediary, such as a bank, brokerage firm, workplace
retirement program, or financial adviser (who may be affiliated with Neuberger
Berman), the Fund and/or Neuberger Berman BD LLC and/or its affiliates may pay
the intermediary for the sale of shares of those other classes of the Fund and
related services. These payments may create a conflict of interest by
influencing the investment provider or other financial intermediary and its
employees to recommend the Fund or those other classes of the Fund over another
investment. Neuberger Berman does not provide ongoing payments to third
parties for any record-keeping or administrative services in connection with
investments in Class R6. To the extent the Fund makes such payments with
respect to another class, they can come only out of the assets of that other
class.
Neuberger Berman Large Cap Growth Fund
Class R6
Shares (NGRDX)
GOAL
The Fund
seeks long-term growth of capital.
Fees and
Expenses
These tables
describe the fees and expenses that you may pay if you buy, hold or sell shares
of the Fund. You may pay other fees, such as brokerage commissions and other
fees to financial intermediaries, which are not reflected in the table and
example below.
Shareholder Fees (fees paid
directly from your investment) |
|
None |
Annual Fund Operating Expenses
(expenses that you pay each year as a % of the value of your
investment) |
|
|
Management
fees |
|
0.53 |
Distribution
and/or shareholder service (12b-1) fees |
|
None |
Other
expenses |
|
0.06 |
Total
annual operating expenses |
|
0.59 |
Fee
waivers and/or expense reimbursement |
|
0.01 |
Total
annual operating expenses after fee waivers and/or expense
reimbursement1 |
|
0.58 |
Expense
Example
The expense
example can help you compare costs among mutual funds. The example assumes that
you invested $10,000 for the periods shown, that you redeemed all of your shares
at the end of those periods, that the Fund earned a hypothetical 5% total return
each year, and that the Fund’s expenses were those in the table. Actual
performance and expenses may be higher or lower.
|
|
1
Year |
|
3
Years |
|
5
Years |
|
10
Years |
Class
R6 |
|
$59 |
|
$188 |
|
$328 |
|
$737 |
Portfolio
Turnover
The Fund
pays transaction costs, such as commissions, when it buys and sells securities
(or “turns over” its portfolio). A higher portfolio turnover rate may indicate
higher transaction costs and may result in higher taxes when Fund shares are
held in a taxable account. These costs, which are not reflected in annual
operating expenses or in the example, affect the Fund’s performance. During the
most recent fiscal year, the Fund’s portfolio turnover rate was 35% of the average
value of its portfolio.
Principal Investment
Strategies
To pursue
its goal, the Fund normally invests at least 80% of its net assets in equity
securities of large-capitalization companies, which it defines as those with a
market capitalization within the market capitalization range of the Russell
1000® Growth Index at the time of purchase.
The
Portfolio Managers employ a research driven approach to stock selection, with a
long term perspective that combines both quantitative analysis and qualitative
judgment. The Portfolio Managers generally seek to identify what they believe to
be faster-growing companies with attractive sales growth and competitive returns
on equity relative to their peers. In doing so, the Portfolio Managers analyze
such factors as: balance sheet metrics; profit margin profiles; market share and
competitive leadership of the company’s products; sales; cash flow and earnings
growth relative to competitors; and market valuation in comparison to a stock’s
own historical norms and the stocks of other large-capitalization
companies.
As part of
their fundamental investment analysis the Portfolio Managers consider
Environmental, Social and Governance (ESG) factors they believe are financially
material to individual investments, where applicable, as described below. While
this analysis is inherently subjective and may be informed by both internally
generated and third-party metrics, data and other information, the Portfolio
Managers believe that the consideration of financially material ESG factors,
alongside traditional financial metrics, may enhance the Fund’s overall
investment process. The consideration of ESG factors does not apply to certain
instruments, such as certain derivative instruments, other registered investment
companies, cash and cash equivalents. The consideration of ESG factors as part
of the investment process does not mean that the Fund pursues a specific
“impact” or “sustainable” investment strategy.
Although the
Fund invests primarily in domestic stocks, it may also invest in stocks of
foreign companies.
The Fund may
invest in restricted securities, including private placements, which are
securities that are subject to legal restrictions on their sale and may not be
sold to the public unless registered under the applicable securities law or
pursuant to an applicable exemption. The Fund may also invest in private
companies, including companies that have not yet issued securities publicly in
an initial public offering.
The Fund may
also use options, including, but not limited to, buying and selling (writing)
put and call options on individual stocks, to attempt to enhance returns. The
Fund will only sell (write) call options on individual stocks if it
simultaneously holds an equivalent position in the stock underlying the option
(“covered call option”).
The Fund
seeks to reduce risk by investing across many companies, sectors and industries.
At times, the Portfolio Managers may emphasize certain sectors or industries
that they believe may benefit from market or economic trends.
The
Portfolio Managers follow a disciplined selling strategy that utilizes a process
analyzing macroeconomic and/or security-specific circumstances, and may sell a
security when it reaches a target price, if a company’s business fails to
perform as expected, or when other opportunities appear more
attractive.
The Fund
will not change its strategy of normally investing at least 80% of its net
assets in equity securities of large-capitalization companies, without providing
shareholders at least 60 days’ notice. This test is applied at the time the Fund
invests; later percentage changes caused by a change in Fund assets, market
values or company circumstances will not require the Fund to dispose of a
holding.
PRINCIPAL INVESTMENT
RISKS
Most of the
Fund’s performance depends on what happens in the stock market, the Portfolio
Managers’ evaluation of those developments, and the success of the Portfolio
Managers in implementing the Fund’s investment strategies. The market’s behavior
can be difficult to predict, particularly in the short term. There can be no
guarantee that the Fund will achieve its goal. The Fund may take temporary
defensive and cash management positions; to the extent it does, it will not be
pursuing its principal investment strategies.
The actual
risk exposure taken by the Fund in its investment program will vary over time,
depending on various factors including the Portfolio Managers’ evaluation of
issuer, political, regulatory, market, or economic developments. There can be no
guarantee that the Portfolio Managers will be successful in their attempts to
manage the risk exposure of the Fund or will appropriately evaluate or weigh the
multiple factors involved in investment decisions, including issuer, market
and/or instrument-specific analysis, valuation and ESG factors.
The Fund is a mutual fund, not a bank deposit, and is not
guaranteed or insured by the Federal Deposit Insurance Corporation or any other
government agency. The value of your investment may fall, sometimes sharply,
and you could lose money by investing in the
Fund.
Each of the
following risks, which are described in alphabetical order and not in order of
any presumed importance, can significantly affect the Fund’s performance. The
relative importance of, or potential exposure as a result of, each of these
risks will vary based on market and other investment-specific
considerations.
Currency
Risk. Currency risk is the risk that foreign currencies will decline in
value relative to the U.S. dollar. To the extent that the Fund invests in
securities or other instruments denominated in or indexed to foreign currencies,
changes in currency exchange rates could adversely impact investment gains or
add to investment losses. Currency exchange rates may fluctuate significantly
over short periods of time and can be affected unpredictably by various factors,
including investor perception and changes in interest rates; intervention, or
failure to intervene, by U.S. or foreign governments, central banks, or
supranational entities; or by currency controls or political developments in the
U.S. or abroad.
Foreign
Risk. Foreign securities involve risks in addition to those associated with
comparable U.S. securities. Additional risks include exposure to less developed
or less efficient trading markets; social, political, diplomatic, or economic
instability; trade barriers and other protectionist trade policies (including
those of the U.S.); imposition of economic sanctions against a particular
country or countries, organizations, companies, entities and/or individuals;
significant government involvement in an economy and/or market structure;
fluctuations in foreign currencies or currency redenomination; potential for
default on sovereign debt; nationalization or expropriation of assets;
settlement, custodial or other operational risks; higher transaction costs;
confiscatory withholding or other taxes; and less stringent auditing and
accounting, corporate disclosure, governance, and legal standards. As a result,
foreign securities may fluctuate more widely in price, and may also be less
liquid, than comparable U.S. securities. World markets, or those in a particular
region, may all react in similar fashion to important economic or political
developments. In addition, foreign markets may perform differently than the U.S.
markets. The effect of economic instability on specific foreign markets or
issuers may be difficult to predict or evaluate. Regardless of where a company
is organized or its stock is traded, its performance may be affected
significantly by events in regions from which it derives its profits or in which
it conducts significant operations.
Securities
of issuers traded on foreign exchanges may be suspended, either by the issuers
themselves, by an exchange, or by governmental authorities. Trading suspensions
may be applied from time to time to the securities of individual issuers for
reasons specific to that issuer, or may be applied broadly by exchanges or
governmental authorities in response to market events. In the event that the
Fund holds material positions in such suspended securities or instruments, the
Fund’s ability to liquidate its positions or provide liquidity to investors may
be compromised and the Fund could incur significant losses.
Growth
Stock Risk. Because the prices of most growth stocks are based on future
expectations, these stocks tend to be more sensitive than value stocks to bad
economic news and negative earnings surprises. When these expectations are not
met or decrease, the prices of these stocks may decline, sometimes sharply, even
if earnings showed an absolute increase. Bad economic news or changing investor
perceptions may adversely affect growth stocks across several sectors and
industries simultaneously.
Issuer-Specific
Risk. An individual security may be more volatile, and may perform
differently, than the market as a whole.
The Fund’s
portfolio may contain fewer securities than the portfolios of other funds, which
increases the risk that the value of the Fund could go down because of the poor
performance of one or a few investments.
Liquidity
Risk. From time to time, the trading market for a particular investment in
which the Fund invests, or a particular type of instrument in which the Fund is
invested, may become less liquid or even illiquid. Illiquid investments
frequently can be more difficult to purchase or sell at an advantageous price or
time, and there is a greater risk that the investments may not be sold for the
price at which the Fund is carrying them. Certain investments that were liquid
when the Fund purchased them may become illiquid, sometimes abruptly.
Additionally, market closures due to holidays or other factors may render a
security or group of securities (e.g., securities tied to a particular country
or geographic region) illiquid for a period of time. An inability to sell a
portfolio position can adversely affect the Fund’s value or prevent the Fund
from being able to take advantage of other investment opportunities. Market
prices for such securities or other investments may be volatile. During periods
of substantial market volatility, an investment or even an entire market segment
may become illiquid, sometimes abruptly, which can adversely affect the Fund’s
ability to limit losses.
Unexpected
episodes of illiquidity, including due to market or political factors,
instrument or issuer-specific factors and/or unanticipated outflows or other
factors, may limit the Fund’s ability to pay redemption proceeds within the
allowable time period. To meet redemption requests during periods of
illiquidity, the Fund may be forced to sell securities at an unfavorable time
and/or under unfavorable conditions.
Market
Volatility Risk. Markets may be volatile and values of individual securities
and other investments, including those of a particular type, may decline
significantly in response to adverse issuer, political, regulatory, market,
economic or other developments that may cause broad changes in market value,
public perceptions concerning these developments, and adverse investor sentiment
or publicity. Geopolitical and other risks, including environmental and public
health risks may add to instability in world economies and markets generally.
Changes in value may be temporary or may last for extended periods. If the Fund
sells a portfolio position before it reaches its market peak, it may miss out on
opportunities for better performance.
Mid- and
Large-Cap Companies Risk. At times, mid- and large-cap companies may be out
of favor with investors. Compared to smaller companies, large-cap companies may
be unable to respond as quickly to changes and opportunities and may grow at a
slower rate. Compared to larger companies, mid-cap companies may depend on a
more limited management group, may have a shorter history of operations, less
publicly available information, less stable earnings, and limited product lines,
markets or financial resources. The securities of mid-cap companies are often
more volatile and less liquid than the securities of larger
companies
and may be more affected than other types of securities by the underperformance
of a sector, during market downturns, or by adverse publicity and investor
perceptions.
Options
Risk. The use of options involves investment strategies and risks different
from those associated with ordinary portfolio securities transactions. If a
strategy is applied at an inappropriate time or market conditions or trends are
judged incorrectly, the use of options may lower the Fund’s return. There can be
no guarantee that the use of options will increase the Fund’s return or income.
In addition, there may be an imperfect correlation between the movement in
prices of options and the securities underlying them and there may at times not
be a liquid secondary market for various options. An abrupt change in the price
of an underlying security could render an option worthless. The prices of
options are volatile and are influenced by, among other things, actual and
anticipated changes in the value of the underlying instrument, or in interest or
currency exchange rates, including the anticipated volatility of the underlying
instrument (known as implied volatility), which in turn are affected by the
performance of the issuer of the underlying instrument, by fiscal and monetary
policies and by national and international political and economic events. As
such, prior to the exercise or expiration of the option, the Fund is exposed to
implied volatility risk, meaning the value, as based on implied volatility, of
an option may increase due to market and economic conditions or views based on
the sector or industry in which issuers of the underlying instrument
participate, including company-specific factors.
By writing
put options, the Fund takes on the risk of declines in the value of the
underlying instrument, including the possibility of a loss up to the entire
strike price of each option it sells, but without the corresponding opportunity
to benefit from potential increases in the value of the underlying instrument.
When the Fund writes a put option, it assumes the risk that it must purchase the
underlying instrument at a strike price that may be higher than the market price
of the instrument. If there is a broad market decline and the Fund is not able
to close out its written put options, it may result in substantial losses to the
Fund. By writing a call option, the Fund may be obligated to deliver instruments
underlying an option at less than the market price. When the Fund writes a
covered call option, it gives up the opportunity to profit from a price increase
in the underlying instrument above the strike price. If a covered call option
that the Fund has written is exercised, the Fund will experience a gain or loss
from the sale of the underlying instrument, depending on the price at which the
Fund purchased the instrument and the strike price of the option. The Fund will
receive a premium from writing options, but the premium received may not be
sufficient to offset any losses sustained from exercised options. In the case of
a covered call, the premium received may be offset by a decline in the market
value of the underlying instrument during the option period. If an option that
the Fund has purchased is never exercised or closed out, the Fund will lose the
amount of the premium it paid and the use of those funds.
Private
Companies and Pre-IPO Investments Risk. Investments in private companies,
including companies that have not yet issued securities publicly in an initial
public offering (“IPO”) (“pre-IPO shares”), involve greater risks than
investments in securities of companies that have traded publicly on an exchange
for extended periods of time. Investments in these companies are generally less
liquid than investments in securities issued by public companies and may be
difficult for the Fund to value. Compared to public companies, private companies
may have a more limited management group and limited operating histories with
narrower, less established product lines and smaller market shares, which may
cause them to be more vulnerable to competitors’ actions, market conditions and
consumer sentiment with respect to their products or services, as well as
general economic downturns. In addition, private companies may have limited
financial resources and may be unable to meet their obligations. The Fund may
only have limited access to a private company’s actual financial results and
there is no assurance that the information obtained by the Fund is reliable.
These companies may not ever issue shares in an IPO and a liquid market for
their shares may never develop, which could adversely affect the Fund’s
liquidity. If the company does issue shares in an IPO, IPOs are risky and
volatile and may cause the value of the Fund’s investment to decrease
significantly. Moreover, because securities issued by private companies are
generally not freely or publicly tradable, the Fund may not have the opportunity
to purchase, or the ability to sell, these securities in the amounts, or at the
prices, the Fund desires.
Private
Placements and Other Restricted Securities Risk. Private placements and
other restricted securities, including securities for which Fund management has
material non-public information, are securities that are subject to legal and/or
contractual restrictions on their sales. These securities may not be sold to the
public unless certain conditions are met, which may include registration under
the applicable securities laws. As a result of the absence of a public trading
market, the prices of these securities may be more difficult to determine than
publicly traded securities and these securities may involve heightened risk as
compared to investments in securities of publicly traded companies. Private
placements and other restricted securities may be illiquid, and it frequently
can be difficult to sell them at a time when it may otherwise be desirable to do
so or the Fund may be able to sell them only at prices that are less than what
the Fund regards as their fair market value. Transaction costs may be higher for
these securities. In addition, the Fund may get only limited information about
the issuer of a private placement or other restricted security.
Recent
Market Conditions. Both U.S. and international markets have experienced
significant volatility in recent months and years. As a result of such
volatility, investment returns may fluctuate significantly. National economies
are substantially interconnected, as are global financial markets, which creates
the possibility that conditions in one country or region might adversely impact
issuers in a different country or region. However, the interconnectedness of
economies and/or markets may be diminishing, which may impact such economies and
markets in ways that cannot be foreseen at this time.
Although
interest rates were unusually low in recent years in the U.S. and abroad,
recently, the Federal Reserve and certain foreign central banks raised interest
rates as part of their efforts to address rising inflation. It is difficult to
accurately predict the pace at which interest rates might increase, the timing,
frequency or magnitude of any such increases in interest rates, or when such
increases might stop. Additionally, various economic and political factors could
cause the Federal Reserve or other foreign central banks to change their
approach in the future and such actions may result in an economic slowdown both
in the U.S. and abroad. Unexpected changes in interest rates could lead to
market volatility or reduce liquidity in certain sectors of the market.
Deteriorating economic fundamentals may, in turn, increase the risk of default
or insolvency of particular issuers, negatively impact market value, cause
credit spreads to widen, and reduce bank balance sheets. Any of these could
cause an increase in market volatility, or reduce liquidity across various
markets or decrease confidence in the markets.
Some
countries, including the U.S., have adopted more protectionist trade policies.
Slowing global economic growth, the rise in protectionist trade policies,
changes to some major international trade agreements, risks associated with the
trade agreement between the United Kingdom and the European Union, and the risks
associated with trade negotiations between the U.S. and China, could affect the
economies of many nations in ways that cannot necessarily be foreseen at the
present time. In addition, the current strength of the U.S. dollar may decrease
foreign demand for U.S. assets, which could have a negative impact on certain
issuers and/or industries.
Regulators
in the U.S. have proposed and adopted a number of changes to regulations
involving the markets and issuers, some of which apply to the Fund. The full
effect of various newly adopted regulations is not currently known.
Additionally, it is not currently known whether any of the proposed regulations
will be adopted. However, due to the scope of regulations being proposed and
adopted, certain of these changes to regulation could limit the Fund’s ability
to pursue its investment strategies or make certain investments, may make it
more costly for it to operate, or adversely impact performance.
Tensions,
war, or open conflict between nations, such as between Russia and Ukraine, in
the Middle East, or in eastern Asia could affect the economies of many nations,
including the United States. The duration of ongoing hostilities and any
sanctions and related events cannot be predicted. Those events present material
uncertainty and risk with respect to markets globally and the performance of the
Fund and its investments or operations could be negatively impacted.
High public
debt in the U.S. and other countries creates ongoing systemic and market risks
and policymaking uncertainty. There is no assurance that the U.S. Congress will
act to raise the nation’s debt ceiling; a failure to do so could cause market
turmoil and substantial investment risks that cannot now be fully predicted.
Unexpected political, regulatory and diplomatic events within the U.S. and
abroad may affect investor and consumer confidence and may adversely impact
financial markets and the broader economy.
There is
widespread concern about the potential effects of global climate change on
property and security values. Certain issuers, industries and regions may be
adversely affected by the impact of climate change in ways that cannot be
foreseen. The impact of legislation, regulation and international accords
related to climate change may negatively impact certain issuers and/or
industries.
Redemption
Risk. The Fund may experience periods of large or frequent redemptions that
could cause the Fund to sell assets at inopportune times, which could have a
negative impact on the Fund’s overall liquidity, or at a loss or depressed
value. Redemption risk is greater to the extent that one or more investors or
intermediaries control a large percentage of investments in the Fund and the
risk is heightened during periods of declining or illiquid markets. Large
redemptions could hurt the Fund’s performance, increase transaction costs, and
create adverse tax consequences.
Sector
Risk. From time to time, based on market or economic conditions, the Fund
may have significant positions in one or more sectors of the market. To the
extent the Fund invests more heavily in particular sectors, its performance will
be especially sensitive to developments that significantly affect those sectors.
Individual sectors or sub-sectors may be more volatile, and may perform
differently, than the broader market. The industries that constitute a sector
may all react in the same way to economic, political or regulatory
events.
Securities
Lending Risk. Securities lending involves a possible delay in recovery of
the loaned securities or a possible loss of rights in the collateral should the
borrower fail financially. The Fund could also lose money if the value of the
collateral decreases.
A summary
of the Fund’s additional principal investment risks is as
follows:
Risk of
Increase in Expenses. A decline in the Fund’s average net assets during the
current fiscal year due to market volatility or other factors could cause the
Fund’s expenses for the current fiscal year to be higher than the expense
information presented in “Fees and Expenses.”
Operational
and Cybersecurity Risk. The Fund and its service providers, and your ability
to transact with the Fund, may be negatively impacted due to operational matters
arising from, among other problems, human errors, systems and technology
disruptions or failures, or cybersecurity incidents. Cybersecurity incidents may
allow an unauthorized party to gain access to fund assets, customer data, or
proprietary information, or cause the Fund or its service providers, as well as
the securities trading venues and their service providers, to suffer data
corruption or lose operational functionality. Cybersecurity incidents can result
from deliberate attacks or unintentional events. It is not possible for the
Manager or the other Fund service providers to identify all of the cybersecurity
or other operational risks that may affect the Fund or to develop processes and
controls to completely eliminate or mitigate their occurrence or effects. Most
issuers in which the Fund invests are heavily dependent on computers for data
storage and operations, and require ready access to the internet to conduct
their business. Thus, cybersecurity incidents could also affect issuers of
securities in which the Fund invests, leading to significant loss of
value.
Risk
Management. Risk is an essential part of investing. No risk management
program can eliminate the Fund’s exposure to adverse events; at best, it may
only reduce the possibility that the Fund will be affected by such events, and
especially those risks that are not intrinsic to the Fund’s investment program.
The Fund could experience losses if judgments about risk prove to be
incorrect.
Valuation
Risk. The Fund may not be able to sell an investment at the price at which
the Fund has valued the investment. Such differences could be significant,
particularly for illiquid securities and securities that trade in relatively
thin markets and/or markets that experience extreme volatility. If market or
other conditions make it difficult to value an investment, the Fund may be
required to value such investments using more subjective methods, known as fair
value methodologies. Using fair value methodologies to price investments may
result in a value that is different from an investment’s most recent price and
from the prices used by other funds to calculate their NAVs. The Fund uses
pricing services to provide values for certain securities and there is no
assurance that the Fund will be able to sell an investment at the price
established by such pricing services. The Fund’s ability to value its
investments in an accurate and timely manner may be impacted by technological
issues and/or errors by third party service providers, such as pricing services
or accounting agents.
PERFORMANCE
The
following bar chart and table provide an indication of the risks of investing in
the Fund. The bar chart
shows how the Fund’s performance has varied from year to year. The table below
the bar chart shows what the returns would equal if you averaged out actual
performance over various lengths of time and compares the returns with the
returns of one or more broad-based market indices. The
index, which is described in “Descriptions of Indices” in the prospectus, has
characteristics relevant to the Fund’s investment strategy.
The following
performance prior to March 29, 2019 is that of the Fund’s Investor Class.
Because Investor Class has higher expenses than Class R6, its performance
typically would have been lower than that of Class
R6.
Returns
would have been lower if the Manager had not reimbursed certain expenses and/or
waived a portion of the investment management fees during certain of the periods
shown.
Past performance (before and
after taxes) is not a prediction of future results. Visit
www.nb.com
or call 800-366-6264 for
updated performance information.
YEAR-BY-YEAR % RETURNS AS OF 12/31 EACH
YEAR
Years |
Returns |
2013 |
38.92% |
2014 |
9.27% |
2015 |
-4.76% |
2016 |
9.19% |
2017 |
25.20% |
2018 |
-6.93% |
2019 |
36.84% |
2020 |
34.85% |
2021 |
27.81% |
2022 |
-24.21% |
Best
quarter: Q2 2020 25.23%
Worst
quarter: Q4 2018 -16.86%
Year to Date performance as
of: 9/30/2023 19.93%
AVERAGE ANNUAL TOTAL % RETURNS AS OF
12/31/22
Large Cap Growth
Fund |
|
1
Year |
|
5
Years |
|
10
Years |
Return
Before Taxes |
|
-24.21 |
|
10.72 |
|
12.64 |
Return
After Taxes on Distributions |
|
-25.31 |
|
8.24 |
|
9.99 |
Return
After Taxes on Distributions and Sale of Fund Shares |
|
-13.52 |
|
8.11 |
|
9.71 |
Russell
1000® Growth Index (reflects no deduction for
fees, expenses or taxes) |
|
-29.14 |
|
10.96 |
|
14.10 |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local
taxes. Actual after-tax returns depend on an investor’s
tax situation and may differ from those shown. After-tax returns are not
relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. Return After Taxes on
Distributions and Sale of Fund Shares may be higher than other returns for the
same period due to a tax benefit of realizing a capital loss upon the sale of
Fund shares.
INVESTMENT
MANAGER
Neuberger
Berman Investment Advisers LLC (“Manager”) is the Fund’s investment
manager.
PORTFOLIO
MANAGERS
The Fund is
managed by Charles Kantor (Managing Director of the Manager) and Marc Regenbaum
(Managing Director of the Manager). Mr. Kantor has managed the Fund since
October 2015. Mr. Regenbaum joined as an Associate Portfolio Manager in
February 2017 and became Portfolio Manager in
December 2020.
Buying
and Selling Shares
You may
purchase, redeem (sell) or exchange shares of the Fund on any day the New York
Stock Exchange is open, at the Fund’s net asset value per share next determined
after your order is received in proper form. Shares of the Fund generally are
available only through certain investment providers, such as banks, brokerage
firms, retirement plan administrators, and financial advisers. Contact any
investment provider authorized to sell the Fund’s shares. See “Maintaining Your
Account” in the prospectus for eligibility requirements for purchases of Class
R6 shares.
For certain
institutional investors, shares of the Fund may be available directly from
Neuberger Berman BD LLC by regular, first class mail (Neuberger Berman Funds,
P.O. Box 219189, Kansas City, MO 64121-9189), by express delivery, registered
mail, or certified mail (Neuberger Berman Funds, 430 West 7th Street,
Suite 219189, Kansas City, MO 64105-1407), or by wire, fax,
telephone,
or exchange (call 800-366-6264 for instructions). See “Maintaining Your Account”
in the prospectus for eligibility requirements for direct purchases of shares
and for instructions on buying and redeeming (selling) shares
directly.
The Fund
does not impose minimum purchase requirements for Class R6 shares. However, you
should contact your investment provider to determine whether it imposes minimum
purchase requirements.
Tax
Information
Unless you
invest in the Fund through a tax-advantaged retirement plan or account or are a
tax-exempt investor, you will be subject to tax on Fund distributions to you of
ordinary income and/or net capital gains. Those distributions generally are not
taxable to such a plan or account or a tax-exempt investor, although withdrawals
from certain retirement plans and accounts generally are subject to federal
income tax.
Payments
to Investment Providers and Other Financial Intermediaries
If you
purchase shares of another class of the Fund through an investment provider or
other financial intermediary, such as a bank, brokerage firm, workplace
retirement program, or financial adviser (who may be affiliated with Neuberger
Berman), the Fund and/or Neuberger Berman BD LLC and/or its affiliates may pay
the intermediary for the sale of shares of those other classes of the Fund and
related services. These payments may create a conflict of interest by
influencing the investment provider or other financial intermediary and its
employees to recommend the Fund or those other classes of the Fund over another
investment. Neuberger Berman does not provide ongoing payments to third
parties for any record-keeping or administrative services in connection with
investments in Class R6. To the extent the Fund makes such payments with
respect to another class, they can come only out of the assets of that other
class.
Neuberger Berman Large Cap Value Fund
Class R6
Shares (NRLCX)
GOAL
The Fund
seeks long-term growth of capital.
Fees and
Expenses
These tables
describe the fees and expenses that you may pay if you buy, hold or sell shares
of the Fund. You may pay other fees, such as brokerage commissions and other
fees to financial intermediaries, which are not reflected in the table and
example below.
Shareholder Fees (fees paid
directly from your investment) |
|
None |
Annual Fund Operating Expenses
(expenses that you pay each year as a % of the value of your
investment) |
|
|
Management
fees |
|
0.47 |
Distribution
and/or shareholder service (12b-1) fees |
|
None |
Other
expenses |
|
0.05 |
Total
annual operating expenses |
|
0.52 |
Expense
Example
The expense
example can help you compare costs among mutual funds. The example assumes that
you invested $10,000 for the periods shown, that you redeemed all of your shares
at the end of those periods, that the Fund earned a hypothetical 5% total return
each year, and that the Fund’s expenses were those in the table. Actual
performance and expenses may be higher or lower.
|
|
1
Year |
|
3
Years |
|
5
Years |
|
10
Years |
Class
R6 |
|
$53 |
|
$167 |
|
$291 |
|
$653 |
Portfolio
Turnover
The Fund
pays transaction costs, such as commissions, when it buys and sells securities
(or “turns over” its portfolio). A higher portfolio turnover rate may indicate
higher transaction costs and may result in higher taxes when Fund shares are
held in a taxable account. These costs, which are not reflected in annual
operating expenses or in the example, affect the Fund’s performance. During the
most recent fiscal year, the Fund’s portfolio turnover rate was 81% of the average
value of its portfolio.
Principal Investment
Strategies
To pursue
its goal, the Fund normally invests at least 80% of its net assets in equity
securities of large-capitalization companies, which it defines as those with a
market capitalization within the market capitalization range of the Russell
1000® Value Index at the time of purchase.
The
Portfolio Managers look for what they believe to be well-managed companies whose
stock prices are undervalued. The Portfolio Managers seek to identify companies
with catalysts that they believe have the potential to improve the companies’
earnings from depressed levels. Such catalysts may include: management changes,
restructurings, new products, new services, or new markets. The Portfolio
Managers may also look for other characteristics in a company, such as a strong
market position relative to competitors, a high level of stock ownership among
management, and a recent sharp decline in stock price that appears to be the
result of a short-term market overreaction to negative news.
Although the
Fund invests primarily in domestic stocks, it may also invest in stocks of
foreign companies. The Fund may also invest in real estate investment trusts
(“REITs”).
The Fund
seeks to reduce risk by diversifying among many companies and industries. At
times, the Portfolio Managers may emphasize certain sectors or industries that
they believe are undervalued relative to their historical valuations.
The Fund may
also use options, including, but not limited to, buying and selling (writing)
put and call options on individual stocks, to attempt to enhance returns. The
Fund will only sell (write) call options on individual stocks if it
simultaneously holds an equivalent position in the stock underlying the option
(“covered call option”).
The
Portfolio Managers follow a disciplined selling strategy and may sell a security
when it reaches a target price, if a company’s business fails to perform as
expected, or when other opportunities appear more attractive. In an effort to
achieve its goal, the Fund may have elevated portfolio turnover.
The Fund
will not change its strategy of normally investing at least 80% of its net
assets in equity securities of large-capitalization companies, without providing
shareholders at least 60 days’ notice. This test is applied at the time the Fund
invests; later percentage changes caused by a change in Fund assets, market
values or company circumstances will not require the Fund to dispose of a
holding.
PRINCIPAL INVESTMENT
RISKS
Most of the
Fund’s performance depends on what happens in the stock market, the Portfolio
Managers’ evaluation of those developments, and the success of the Portfolio
Managers in implementing the Fund’s investment strategies. The market’s behavior
can be difficult to predict, particularly in the short term. There can be no
guarantee that the Fund will achieve its goal. The Fund may take temporary
defensive and cash management positions; to the extent it does, it will not be
pursuing its principal investment strategies.
The actual
risk exposure taken by the Fund in its investment program will vary over time,
depending on various factors including the Portfolio Managers’ evaluation of
issuer, political, regulatory, market, or economic developments. There can be no
guarantee that the Portfolio Managers will be successful in their attempts to
manage the risk exposure of the Fund or will appropriately evaluate or weigh the
multiple factors involved in investment decisions, including issuer, market
and/or instrument-specific analysis and valuation.
The Fund is a mutual fund, not a bank deposit, and is not
guaranteed or insured by the Federal Deposit Insurance Corporation or any other
government agency. The value of your investment may fall, sometimes sharply,
and you could lose money by investing in the
Fund.
Each of the
following risks, which are described in alphabetical order and not in order of
any presumed importance, can significantly affect the Fund’s performance. The
relative importance of, or potential exposure as a result of, each of these
risks will vary based on market and other investment-specific
considerations.
Catalyst
Risk. Investing in companies in anticipation of a catalyst carries the risk
that the catalyst may not happen as anticipated, or the market may react to the
catalyst differently than expected. Certain catalysts, such as emergence from,
or restructuring as a result of, bankruptcy, carry additional risks and the
securities of such companies may be more likely to lose value than the
securities of more stable companies. Securities of issuers undergoing such an
event may be more volatile than other securities, may at times be illiquid, and
may be difficult to value, and management of such a company may be addressing a
situation with which it has little experience.
Currency
Risk. Currency risk is the risk that foreign currencies will decline in
value relative to the U.S. dollar. To the extent that the Fund invests in
securities or other instruments denominated in or indexed to foreign currencies,
changes in currency exchange rates could adversely impact investment gains or
add to investment losses. Currency exchange rates may fluctuate significantly
over short periods of time and can be affected unpredictably by various factors,
including investor perception and changes in interest rates; intervention, or
failure to intervene, by U.S. or foreign governments, central banks, or
supranational entities; or by currency controls or political developments in the
U.S. or abroad.
Foreign
Risk. Foreign securities involve risks in addition to those associated with
comparable U.S. securities. Additional risks include exposure to less developed
or less efficient trading markets; social, political, diplomatic, or economic
instability; trade barriers and other protectionist trade policies (including
those of the U.S.); imposition of economic sanctions against a particular
country or countries, organizations, companies, entities and/or individuals;
significant government involvement in an economy and/or market structure;
fluctuations in foreign currencies or currency redenomination; potential for
default on sovereign debt; nationalization or expropriation of assets;
settlement, custodial or other operational risks; higher transaction costs;
confiscatory withholding or other taxes; and less stringent auditing and
accounting, corporate disclosure, governance, and legal standards. As a result,
foreign securities may fluctuate more widely in price, and may also be less
liquid, than comparable U.S. securities. World markets, or those in a particular
region, may all react in similar fashion to important economic or political
developments. In addition, foreign markets may perform differently than the U.S.
markets. The effect of economic instability on specific foreign markets or
issuers may be difficult to predict or evaluate. Regardless of where a company
is organized or its stock is traded, its performance may be affected
significantly by events in regions from which it derives its profits or in which
it conducts significant operations.
Securities
of issuers traded on foreign exchanges may be suspended, either by the issuers
themselves, by an exchange, or by governmental authorities. Trading suspensions
may be applied from time to time to the securities of individual issuers for
reasons specific to that issuer, or may be applied broadly by exchanges or
governmental authorities in response to market events. In the event that the
Fund holds material positions in such suspended securities or instruments, the
Fund’s ability to liquidate its positions or provide liquidity to investors may
be compromised and the Fund could incur significant losses.
High
Portfolio Turnover Risk. The Fund may engage in active and frequent trading
and may have a high portfolio turnover rate, which may increase the Fund’s
transaction costs, may adversely affect the Fund’s performance and may generate
a greater amount of capital gain distributions to shareholders than if the Fund
had a low portfolio turnover rate.
Issuer-Specific
Risk. An individual security may be more volatile, and may perform
differently, than the market as a whole.
Market
Volatility Risk. Markets may be volatile and values of individual securities
and other investments, including those of a particular type, may decline
significantly in response to adverse issuer, political, regulatory, market,
economic or other developments that may cause broad changes in market value,
public perceptions concerning these developments, and adverse investor sentiment
or publicity. Geopolitical and other risks, including environmental and public
health risks may add to instability in world economies and markets generally.
Changes in value may be temporary or may last for extended periods. If the Fund
sells a portfolio position before it reaches its market peak, it may miss out on
opportunities for better performance.
Mid- and
Large-Cap Companies Risk. At times, mid- and large-cap companies may be out
of favor with investors. Compared to smaller companies, large-cap companies may
be unable to respond as quickly to changes and opportunities and may grow at a
slower rate. Compared to larger companies, mid-cap companies may depend on a
more limited management group, may have a shorter history of operations, less
publicly available information, less stable earnings, and limited product lines,
markets or financial resources. The securities of mid-cap companies are often
more volatile and less liquid than the securities of larger companies and may be
more affected than other types of securities by the underperformance of a
sector, during market downturns, or by adverse publicity and investor
perceptions.
Options
Risk. The use of options involves investment strategies and risks different
from those associated with ordinary portfolio securities transactions. If a
strategy is applied at an inappropriate time or market conditions or trends are
judged incorrectly, the use of options may lower the Fund’s return. There can be
no guarantee that the use of options will increase the Fund’s return or income.
In addition, there may be an imperfect correlation between the movement in
prices of options and the securities underlying them and there may at times not
be a liquid secondary market for various options. An abrupt change in the price
of an underlying security could render an option worthless. The prices of
options are volatile and are influenced by, among other things, actual and
anticipated changes in the value of the underlying instrument, or in interest or
currency exchange rates, including the anticipated volatility of the underlying
instrument (known as implied volatility), which in turn are affected by the
performance of the issuer of the underlying instrument, by fiscal and monetary
policies and by national and international political and economic events. As
such, prior to the exercise or expiration of the option, the Fund is exposed to
implied volatility risk, meaning the value, as based on implied volatility, of
an option may increase due to market and economic conditions or views based on
the sector or industry in which issuers of the underlying instrument
participate, including company-specific factors.
By writing
put options, the Fund takes on the risk of declines in the value of the
underlying instrument, including the possibility of a loss up to the entire
strike price of each option it sells, but without the corresponding opportunity
to benefit from potential increases in the value of the underlying instrument.
When the Fund writes a put option, it assumes the risk that it must purchase the
underlying instrument at a strike price that may be higher than the market price
of the instrument. If there is a broad market decline and the Fund is not able
to close out its written put options, it may result in substantial losses to the
Fund. By writing a call option, the Fund may be obligated to deliver instruments
underlying an option at less than the market price. When the Fund writes a
covered call option, it gives up the opportunity to profit from a price increase
in the underlying instrument above the strike price. If a covered call option
that the Fund has written is exercised, the Fund will experience a gain or loss
from the sale of the underlying instrument, depending on the price at which the
Fund purchased the instrument and the strike price of the option. The Fund will
receive a premium from writing options, but the premium received may not be
sufficient to offset any losses sustained from exercised options. In the case of
a covered call, the premium received may be offset by a decline in the market
value of the underlying instrument during the option period. If an option that
the Fund has purchased is never exercised or closed out, the Fund will lose the
amount of the premium it paid and the use of those funds.
Recent
Market Conditions. Both U.S. and international markets have experienced
significant volatility in recent months and years. As a result of such
volatility, investment returns may fluctuate significantly. National economies
are substantially interconnected, as are global financial markets, which creates
the possibility that conditions in one country or region might
adversely
impact issuers in a different country or region. However, the interconnectedness
of economies and/or markets may be diminishing, which may impact such economies
and markets in ways that cannot be foreseen at this time.
Although
interest rates were unusually low in recent years in the U.S. and abroad,
recently, the Federal Reserve and certain foreign central banks raised interest
rates as part of their efforts to address rising inflation. It is difficult to
accurately predict the pace at which interest rates might increase, the timing,
frequency or magnitude of any such increases in interest rates, or when such
increases might stop. Additionally, various economic and political factors could
cause the Federal Reserve or other foreign central banks to change their
approach in the future and such actions may result in an economic slowdown both
in the U.S. and abroad. Unexpected changes in interest rates could lead to
market volatility or reduce liquidity in certain sectors of the market.
Deteriorating economic fundamentals may, in turn, increase the risk of default
or insolvency of particular issuers, negatively impact market value, cause
credit spreads to widen, and reduce bank balance sheets. Any of these could
cause an increase in market volatility, or reduce liquidity across various
markets or decrease confidence in the markets.
Some
countries, including the U.S., have adopted more protectionist trade policies.
Slowing global economic growth, the rise in protectionist trade policies,
changes to some major international trade agreements, risks associated with the
trade agreement between the United Kingdom and the European Union, and the risks
associated with trade negotiations between the U.S. and China, could affect the
economies of many nations in ways that cannot necessarily be foreseen at the
present time. In addition, the current strength of the U.S. dollar may decrease
foreign demand for U.S. assets, which could have a negative impact on certain
issuers and/or industries.
Regulators
in the U.S. have proposed and adopted a number of changes to regulations
involving the markets and issuers, some of which apply to the Fund. The full
effect of various newly adopted regulations is not currently known.
Additionally, it is not currently known whether any of the proposed regulations
will be adopted. However, due to the scope of regulations being proposed and
adopted, certain of these changes to regulation could limit the Fund’s ability
to pursue its investment strategies or make certain investments, may make it
more costly for it to operate, or adversely impact performance.
Tensions,
war, or open conflict between nations, such as between Russia and Ukraine, in
the Middle East, or in eastern Asia could affect the economies of many nations,
including the United States. The duration of ongoing hostilities and any
sanctions and related events cannot be predicted. Those events present material
uncertainty and risk with respect to markets globally and the performance of the
Fund and its investments or operations could be negatively impacted.
High public
debt in the U.S. and other countries creates ongoing systemic and market risks
and policymaking uncertainty. There is no assurance that the U.S. Congress will
act to raise the nation’s debt ceiling; a failure to do so could cause market
turmoil and substantial investment risks that cannot now be fully predicted.
Unexpected political, regulatory and diplomatic events within the U.S. and
abroad may affect investor and consumer confidence and may adversely impact
financial markets and the broader economy.
There is
widespread concern about the potential effects of global climate change on
property and security values. Certain issuers, industries and regions may be
adversely affected by the impact of climate change in ways that cannot be
foreseen. The impact of legislation, regulation and international accords
related to climate change may negatively impact certain issuers and/or
industries.
Redemption
Risk. The Fund may experience periods of large or frequent redemptions that
could cause the Fund to sell assets at inopportune times, which could have a
negative impact on the Fund’s overall liquidity, or at a loss or depressed
value. Redemption risk is greater to the extent that one or more investors or
intermediaries control a large percentage of investments in the Fund and the
risk is heightened during periods of declining or illiquid markets. Large
redemptions could hurt the Fund’s performance, increase transaction costs, and
create adverse tax consequences.
REITs and
Other Real Estate Companies Risk. REITs and other real estate company
securities are subject to risks similar to those of direct investments in real
estate and the real estate industry in general, including, among other risks:
general and local economic conditions; changes in interest rates; declines in
property values; defaults by mortgagors or other borrowers and tenants;
increases in property taxes and other operating expenses; overbuilding in their
sector of the real estate market; fluctuations in rental income; lack of
availability of mortgage funds or financing; extended vacancies of properties,
especially during economic downturns; changes in tax and regulatory
requirements; losses due to environmental liabilities; casualty or condemnation
losses; changing social trends regarding working arrangements; or other
economic, social, political, or regulatory matters affecting the real estate
industry. REITs also are dependent upon the skills of their managers and are
subject to heavy cash flow dependency or self-liquidation.
Regardless
of where a REIT is organized or traded, its performance may be affected
significantly by events in the region where its properties are located. Domestic
REITs could be adversely affected by failure to qualify for tax-free
“pass-through” of distributed
net
investment income and net realized gains under the Internal Revenue Code of
1986, as amended, (“Code”) or to maintain their exemption from registration
under the Investment Company Act of 1940, as amended. The value of REIT common
shares may decline when interest rates rise. REITs and other real estate company
securities tend to be small- to mid-cap securities and are subject to the risks
of investing in small- to mid-cap securities.
Sector
Risk. From time to time, based on market or economic conditions, the Fund
may have significant positions in one or more sectors of the market. To the
extent the Fund invests more heavily in particular sectors, its performance will
be especially sensitive to developments that significantly affect those sectors.
Individual sectors or sub-sectors may be more volatile, and may perform
differently, than the broader market. The industries that constitute a sector
may all react in the same way to economic, political or regulatory
events.
Securities
Lending Risk. Securities lending involves a possible delay in recovery of
the loaned securities or a possible loss of rights in the collateral should the
borrower fail financially. The Fund could also lose money if the value of the
collateral decreases.
Value
Stock Risk. Value stocks may remain undervalued for extended periods of
time, may decrease in value during a given period, may not ever realize what the
portfolio management team believes to be their full value, or the portfolio
management team’s assumptions about intrinsic value or potential for
appreciation may be incorrect. This may happen, among other reasons, because of
a failure to anticipate which stocks or industries would benefit from changing
market or economic conditions or investor preferences.
A summary
of the Fund’s additional principal investment risks is as
follows:
Risk of
Increase in Expenses. A decline in the Fund’s average net assets during the
current fiscal year due to market volatility or other factors could cause the
Fund’s expenses for the current fiscal year to be higher than the expense
information presented in “Fees and Expenses.”
Operational
and Cybersecurity Risk. The Fund and its service providers, and your ability
to transact with the Fund, may be negatively impacted due to operational matters
arising from, among other problems, human errors, systems and technology
disruptions or failures, or cybersecurity incidents. Cybersecurity incidents may
allow an unauthorized party to gain access to fund assets, customer data, or
proprietary information, or cause the Fund or its service providers, as well as
the securities trading venues and their service providers, to suffer data
corruption or lose operational functionality. Cybersecurity incidents can result
from deliberate attacks or unintentional events. It is not possible for the
Manager or the other Fund service providers to identify all of the cybersecurity
or other operational risks that may affect the Fund or to develop processes and
controls to completely eliminate or mitigate their occurrence or effects. Most
issuers in which the Fund invests are heavily dependent on computers for data
storage and operations, and require ready access to the internet to conduct
their business. Thus, cybersecurity incidents could also affect issuers of
securities in which the Fund invests, leading to significant loss of
value.
Risk
Management. Risk is an essential part of investing. No risk management
program can eliminate the Fund’s exposure to adverse events; at best, it may
only reduce the possibility that the Fund will be affected by such events, and
especially those risks that are not intrinsic to the Fund’s investment program.
The Fund could experience losses if judgments about risk prove to be
incorrect.
Valuation
Risk. The Fund may not be able to sell an investment at the price at which
the Fund has valued the investment. Such differences could be significant,
particularly for illiquid securities and securities that trade in relatively
thin markets and/or markets that experience extreme volatility. If market or
other conditions make it difficult to value an investment, the Fund may be
required to value such investments using more subjective methods, known as fair
value methodologies. Using fair value methodologies to price investments may
result in a value that is different from an investment’s most recent price and
from the prices used by other funds to calculate their NAVs. The Fund uses
pricing services to provide values for certain securities and there is no
assurance that the Fund will be able to sell an investment at the price
established by such pricing services. The Fund’s ability to value its
investments in an accurate and timely manner may be impacted by technological
issues and/or errors by third party service providers, such as pricing services
or accounting agents.
PERFORMANCE
The
following bar chart and table provide an indication of the risks of investing in
the Fund. The bar chart
shows how the Fund’s performance has varied from year to year. The table below
the bar chart shows what the returns would equal if you averaged out actual
performance over various lengths of time and compares the returns with the
returns of a broad-based market index. The index, which
is described in “Descriptions of Indices” in the prospectus, has characteristics
relevant to the Fund’s investment strategy.
The following
performance prior to January 18, 2019 is that of the Fund’s Investor Class.
Because Investor Class has higher expenses than Class R6, its performance
typically would have been lower than that of Class
R6.
Returns
would have been lower/higher if the Manager had not reimbursed/recouped certain
expenses and/or waived a portion of the investment management fees during
certain of the periods shown.
Past performance (before and
after taxes) is not a prediction of future results. Visit
www.nb.com
or call 800-366-6264 for
updated performance information.
year-by-year % Returns as of 12/31 each
year
Years |
Returns |
2013 |
31.39% |
2014 |
11.02% |
2015 |
-12.30% |
2016 |
28.22% |
2017 |
13.40% |
2018 |
-0.93% |
2019 |
24.24% |
2020 |
14.78% |
2021 |
28.39% |
2022 |
-0.96% |
Best
quarter: Q4 2020 28.74%
Worst
quarter: Q1 2020 -26.80%
Year to Date performance as
of: 9/30/2023 -5.13%
average annual total % returns as of
12/31/22
Large Cap Value
Fund |
|
1
Year |
|
5
Years |
|
10
Years |
Return
Before Taxes |
|
-0.96 |
|
12.43 |
|
12.82 |
Return
After Taxes on Distributions |
|
-1.38 |
|
10.99 |
|
10.49 |
Return
After Taxes on Distributions and Sale of Fund Shares |
|
-0.27 |
|
9.55 |
|
9.61 |
Russell
1000® Value Index (reflects no deduction for
fees, expenses or taxes) |
|
-7.54 |
|
6.67 |
|
10.29 |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local
taxes. Actual after-tax returns depend on an investor’s
tax situation and may differ from those shown. After-tax returns are not
relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. Return After Taxes on
Distributions and Sale of Fund Shares may be higher than other returns for the
same period due to a tax benefit of realizing a capital loss upon the sale of
Fund shares.
INVESTMENT
MANAGER
Neuberger
Berman Investment Advisers LLC (“Manager”) is the Fund’s investment
manager.
PORTFOLIO
MANAGERS
The Fund is
managed by Portfolio Manager Eli M. Salzmann (Managing Director of the Manager)
and Associate Portfolio Manager David Levine, CFA (Managing Director of the
Manager). Mr. Salzmann has managed the Fund since December 2011 and Mr.
Levine has managed the Fund since April 2021.
Buying
and Selling Shares
You may
purchase, redeem (sell) or exchange shares of the Fund on any day the New York
Stock Exchange is open, at the Fund’s net asset value per share next determined
after your order is received in proper form. Shares of the Fund generally are
available only through certain investment providers, such as banks, brokerage
firms, retirement plan administrators, and financial advisers.
Contact any
investment provider authorized to sell the Fund’s shares. See “Maintaining Your
Account” in the prospectus for eligibility requirements for purchases of Class
R6 shares.
For certain
institutional investors, shares of the Fund may be available directly from
Neuberger Berman BD LLC by regular, first class mail (Neuberger Berman Funds,
P.O. Box 219189, Kansas City, MO 64121-9189), by express delivery, registered
mail, or certified mail (Neuberger Berman Funds, 430 West 7th Street,
Suite 219189, Kansas City, MO 64105-1407), or by wire, fax, telephone, or
exchange (call 800-366-6264 for instructions). See “Maintaining Your Account” in
the prospectus for eligibility requirements for direct purchases of shares and
for instructions on buying and redeeming (selling) shares directly.
The Fund
does not impose minimum purchase requirements for Class R6 shares. However, you
should contact your investment provider to determine whether it imposes minimum
purchase requirements.
Tax
Information
Unless you
invest in the Fund through a tax-advantaged retirement plan or account or are a
tax-exempt investor, you will be subject to tax on Fund distributions to you of
ordinary income and/or net capital gains. Those distributions generally are not
taxable to such a plan or account or a tax-exempt investor, although withdrawals
from certain retirement plans and accounts generally are subject to federal
income tax.
Payments
to Investment Providers and Other Financial Intermediaries
If you
purchase shares of another class of the Fund through an investment provider or
other financial intermediary, such as a bank, brokerage firm, workplace
retirement program, or financial adviser (who may be affiliated with Neuberger
Berman), the Fund and/or Neuberger Berman BD LLC and/or its affiliates may pay
the intermediary for the sale of shares of those other classes of the Fund and
related services. These payments may create a conflict of interest by
influencing the investment provider or other financial intermediary and its
employees to recommend the Fund or those other classes of the Fund over another
investment. Neuberger Berman does not provide ongoing payments to third
parties for any record-keeping or administrative services in connection with
investments in Class R6. To the extent the Fund makes such payments with
respect to another class, they can come only out of the assets of that other
class.
Neuberger Berman Mid Cap Growth Fund
Class R6
Shares (NRMGX)
GOAL
The Fund
seeks growth of capital.
Fees and
Expenses
These tables
describe the fees and expenses that you may pay if you buy, hold or sell shares
of the Fund. You may pay other fees, such as brokerage commissions and other
fees to financial intermediaries, which are not reflected in the table and
example below.
Shareholder Fees (fees paid
directly from your investment) |
|
None |
Annual Fund Operating Expenses
(expenses that you pay each year as a % of the value of your
investment) |
|
|
Management
fees |
|
0.54 |
Distribution
and/or shareholder service (12b-1) fees |
|
None |
Other
expenses |
|
0.06 |
Total
annual operating expenses |
|
0.60 |
Expense
Example
The expense
example can help you compare costs among mutual funds. The example assumes that
you invested $10,000 for the periods shown, that you redeemed all of your shares
at the end of those periods, that the Fund earned a hypothetical 5% total return
each year, and that the Fund’s expenses were those in the table. Actual
performance and expenses may be higher or lower.
|
|
1
Year |
|
3
Years |
|
5
Years |
|
10
Years |
Class
R6 |
|
$61 |
|
$192 |
|
$335 |
|
$750 |
Portfolio
Turnover
The Fund
pays transaction costs, such as commissions, when it buys and sells securities
(or “turns over” its portfolio). A higher portfolio turnover rate may indicate
higher transaction costs and may result in higher taxes when Fund shares are
held in a taxable account. These costs, which are not reflected in annual
operating expenses or in the example, affect the Fund’s performance. During the
most recent fiscal year, the Fund’s portfolio turnover rate was 101% of the
average value of its portfolio.
Principal Investment
Strategies
To pursue
its goal, the Fund normally invests at least 80% of its net assets in common
stocks of mid-capitalization companies, which it defines as those with a market
capitalization within the market capitalization range of the Russell
Midcap® Index at the time of initial purchase. Although the Fund
invests primarily in domestic securities, it may also invest in securities of
foreign companies.
The Fund’s
strategy utilizes a qualitative, bottom-up research driven approach to identify
companies that the Portfolio Managers believe have catalysts for growth which
are underappreciated by the market. The Portfolio Managers seek to invest in
underappreciated companies with the following characteristics: durable and
potentially unique business models and/or proficient management capable of
advancing the development of and/or strengthening of sustainable and consistent
revenue growth, cash flow growth, earnings growth and/or overall balance sheet
strength. Such catalysts may include a new technology, product or service, a
regulatory update, market share gains, cyclical inflections (e.g. companies
whose returns are driven by macro-economic factors), corporate restructurings or
self-help initiatives (e.g. internal operating efforts to increase company
efficiencies). The Portfolio Managers may also invest in anticipation of a
catalyst.
In analyzing
catalysts, the Portfolio Managers evaluate each catalyst’s uniqueness, timing,
growth potential and sustainability, as well as assessing execution risks,
competitive barriers and threats. The Portfolio Managers are also attempting to
exploit market inefficiencies that potentially may exist within the
small-to-mid-capitalization market, due to the number of companies that comprise
the investable universe and the limited amount of available research that exists
for some of those companies. Investable companies emerging from the Portfolio
Manager’s bottom-up fundamental, qualitative and valuation analysis fall into
the following investment classifications:
Core
investments: are typically more mature companies, engaged with, and
participating in, compelling secular growth trends, that the Portfolio Managers
believe offer a demonstrated history of consistent execution and results. These
tend to represent multi-year holdings of the strategy.
Turn
investments: represent holdings in a wide range of corporate development and
maturity stages and are generally driven by what the Portfolio Managers believe
to be a distinct developing catalyst, such as a new product or service, market
share gains or internal corporate self-help opportunities to improve operating
efficiencies.
Tactical
investments: represent holdings with a shorter-term investment horizon due
to catalysts the Portfolio Managers believe are typically associated with
cyclical trends and opportunities, a disconnect with market expectations
providing an opportunity on valuation or a new product, or financial or
regulatory developments that could have a material impact on the
company.
Tactical
investments have the potential to grow into Turn investments, while compelling
Turn investments will ideally develop into Core investments.
The Fund
seeks to reduce risk by diversifying among many companies, sectors and
industries. At times, the Portfolio Managers may emphasize certain sectors that
they believe will benefit from market or economic trends.
The
Portfolio Managers constantly monitor their holdings and are focused on
maintaining what they believe is an appropriate and attractive risk/reward
balance with a disciplined sell process that acts quickly and dispassionately to
address both positive and negative outcomes. A position is typically trimmed or
exited for the following reasons: to harvest gains from significant short-term
price appreciation, the positive realization of a catalyst, the achievement of a
price target or elevated valuations, identification of a better idea, to
minimize potential risks, to address an absence of near-term drivers or
catalysts, a significant deterioration of fundamentals, a change in management
or operating strategy or the failure of a catalyst to develop.
The Fund
will not change its strategy of normally investing at least 80% of its net
assets in mid-capitalization companies, without providing shareholders at least
60 days’ notice. This test is applied at the time the Fund invests; later
percentage changes caused by a change in Fund assets, market values or company
circumstances will not require the Fund to dispose of a holding.
PRINCIPAL INVESTMENT
RISKS
Most of the
Fund’s performance depends on what happens in the stock market, the Portfolio
Managers’ evaluation of those developments, and the success of the Portfolio
Managers in implementing the Fund’s investment strategies. The market’s behavior
can be difficult to predict, particularly in the short term. There can be no
guarantee that the Fund will achieve its goal. The Fund may take temporary
defensive and cash management positions; to the extent it does, it will not be
pursuing its principal investment strategies.
The actual
risk exposure taken by the Fund in its investment program will vary over time,
depending on various factors including the Portfolio Managers’ evaluation of
issuer, political, regulatory, market, or economic developments. There can be no
guarantee that the Portfolio Managers will be successful in their attempts to
manage the risk exposure of the Fund or will appropriately evaluate or weigh the
multiple factors involved in investment decisions, including issuer, market
and/or instrument-specific analysis and valuation.
The Fund is a mutual fund, not a bank deposit, and is not
guaranteed or insured by the Federal Deposit Insurance Corporation or any other
government agency. The value of your investment may fall, sometimes sharply,
and you could lose money by investing in the
Fund.
Each of the
following risks, which are described in alphabetical order and not in order of
any presumed importance, can significantly affect the Fund’s performance. The
relative importance of, or potential exposure as a result of, each of these
risks will vary based on market and other investment-specific
considerations.
Catalyst
Risk. Investing in companies in anticipation of a catalyst carries the risk
that the catalyst may not happen as anticipated, or the market may react to the
catalyst differently than expected. Certain catalysts, such as emergence from,
or restructuring as a result of, bankruptcy, carry additional risks and the
securities of such companies may be more likely to lose value than the
securities of more stable companies. Securities of issuers undergoing such an
event may be more volatile than other securities, may at times be illiquid, and
may be difficult to value, and management of such a company may be addressing a
situation with which it has little experience.
Foreign
Risk. Foreign securities involve risks in addition to those associated with
comparable U.S. securities. Additional risks include exposure to less developed
or less efficient trading markets; social, political, diplomatic, or economic
instability; trade barriers and other protectionist trade policies (including
those of the U.S.); imposition of economic sanctions against a particular
country or countries, organizations, companies, entities and/or individuals;
significant government involvement in an economy and/or market structure;
fluctuations in foreign currencies or currency redenomination; potential for
default on sovereign debt; nationalization or expropriation of assets;
settlement, custodial or other operational risks; higher transaction costs;
confiscatory withholding or other taxes; and less stringent auditing and
accounting, corporate disclosure, governance, and legal standards. As a result,
foreign securities may fluctuate more widely in price, and may also be less
liquid, than comparable U.S. securities. World markets, or those in a particular
region, may all react in similar fashion to important economic or political
developments. In addition, foreign markets may perform differently than the U.S.
markets. The effect of economic instability on specific foreign markets or
issuers may be difficult to predict or evaluate. Regardless of where a company
is organized or its stock is traded, its performance may be affected
significantly by events in regions from which it derives its profits or in which
it conducts significant operations.
Securities
of issuers traded on foreign exchanges may be suspended, either by the issuers
themselves, by an exchange, or by governmental authorities. Trading suspensions
may be applied from time to time to the securities of individual issuers for
reasons specific to that issuer, or may be applied broadly by exchanges or
governmental authorities in response to market events. In the event that the
Fund holds material positions in such suspended securities or instruments, the
Fund’s ability to liquidate its positions or provide liquidity to investors may
be compromised and the Fund could incur significant losses.
Foreign
Exposure Risk. Securities issued by U.S. entities with substantial foreign
operations or holdings, or issued by foreign entities listed on a U.S. exchange,
may involve additional risks relating to political, economic, or regulatory
conditions in foreign countries, as well as currency exchange rates.
Growth
Stock Risk. Because the prices of most growth stocks are based on future
expectations, these stocks tend to be more sensitive than value stocks to bad
economic news and negative earnings surprises. When these expectations are not
met or decrease, the prices of these stocks may decline, sometimes sharply, even
if earnings showed an absolute increase. Bad economic news or changing investor
perceptions may adversely affect growth stocks across several sectors and
industries simultaneously.
Issuer-Specific
Risk. An individual security may be more volatile, and may perform
differently, than the market as a whole.
Market
Volatility Risk. Markets may be volatile and values of individual securities
and other investments, including those of a particular type, may decline
significantly in response to adverse issuer, political, regulatory, market,
economic or other developments that may cause broad changes in market value,
public perceptions concerning these developments, and adverse investor sentiment
or publicity. Geopolitical and other risks, including environmental and public
health risks may add to instability in world economies and markets generally.
Changes in value may be temporary or may last for extended periods. If the Fund
sells a portfolio position before it reaches its market peak, it may miss out on
opportunities for better performance.
Mid-Cap
Companies Risk. At times, mid-cap companies may be out of favor with
investors. Compared to larger companies, mid-cap companies may depend on a more
limited management group, may have a shorter history of operations, less
publicly available information, less stable earnings, and limited product lines,
markets or financial resources. The securities of mid-cap companies are often
more volatile, which at times can be rapid and unpredictable, and less liquid
than the securities of larger companies and may be more affected than other
types of securities by the underperformance of a sector, during market
downturns, or by adverse publicity and investor perceptions.
Recent
Market Conditions. Both U.S. and international markets have experienced
significant volatility in recent months and years. As a result of such
volatility, investment returns may fluctuate significantly. National economies
are substantially interconnected, as are global financial markets, which creates
the possibility that conditions in one country or region might adversely impact
issuers in a different country or region. However, the interconnectedness of
economies and/or markets may be diminishing, which may impact such economies and
markets in ways that cannot be foreseen at this time.
Although
interest rates were unusually low in recent years in the U.S. and abroad,
recently, the Federal Reserve and certain foreign central banks raised interest
rates as part of their efforts to address rising inflation. It is difficult to
accurately predict the pace at which interest rates might increase, the timing,
frequency or magnitude of any such increases in interest rates, or when such
increases might stop. Additionally, various economic and political factors could
cause the Federal Reserve or other foreign central banks to change their
approach in the future and such actions may result in an economic slowdown both
in the U.S. and abroad. Unexpected changes in interest rates could lead to
market volatility or reduce liquidity in certain sectors of the market.
Deteriorating economic fundamentals may, in turn, increase the risk of default
or insolvency of particular issuers, negatively impact market value, cause
credit spreads to widen, and reduce bank balance sheets. Any of these could
cause an increase in market volatility, or reduce liquidity across various
markets or decrease confidence in the markets.
Some
countries, including the U.S., have adopted more protectionist trade policies.
Slowing global economic growth, the rise in protectionist trade policies,
changes to some major international trade agreements, risks associated with the
trade agreement between the United Kingdom and the European Union, and the risks
associated with trade negotiations between the U.S. and China, could affect the
economies of many nations in ways that cannot necessarily be foreseen at the
present time. In addition, the current strength of the U.S. dollar may decrease
foreign demand for U.S. assets, which could have a negative impact on certain
issuers and/or industries.
Regulators
in the U.S. have proposed and adopted a number of changes to regulations
involving the markets and issuers, some of which apply to the Fund. The full
effect of various newly adopted regulations is not currently known.
Additionally, it is not currently known whether any of the proposed regulations
will be adopted. However, due to the scope of regulations being proposed and
adopted, certain of these changes to regulation could limit the Fund’s ability
to pursue its investment strategies or make certain investments, may make it
more costly for it to operate, or adversely impact performance.
Tensions,
war, or open conflict between nations, such as between Russia and Ukraine, in
the Middle East, or in eastern Asia could affect the economies of many nations,
including the United States. The duration of ongoing hostilities and any
sanctions and related events cannot be predicted. Those events present material
uncertainty and risk with respect to markets globally and the performance of the
Fund and its investments or operations could be negatively impacted.
High public
debt in the U.S. and other countries creates ongoing systemic and market risks
and policymaking uncertainty. There is no assurance that the U.S. Congress will
act to raise the nation’s debt ceiling; a failure to do so could cause market
turmoil and
substantial
investment risks that cannot now be fully predicted. Unexpected political,
regulatory and diplomatic events within the U.S. and abroad may affect investor
and consumer confidence and may adversely impact financial markets and the
broader economy.
There is
widespread concern about the potential effects of global climate change on
property and security values. Certain issuers, industries and regions may be
adversely affected by the impact of climate change in ways that cannot be
foreseen. The impact of legislation, regulation and international accords
related to climate change may negatively impact certain issuers and/or
industries.
Redemption
Risk. The Fund may experience periods of large or frequent redemptions that
could cause the Fund to sell assets at inopportune times, which could have a
negative impact on the Fund’s overall liquidity, or at a loss or depressed
value. Redemption risk is greater to the extent that one or more investors or
intermediaries control a large percentage of investments in the Fund and the
risk is heightened during periods of declining or illiquid markets. Large
redemptions could hurt the Fund’s performance, increase transaction costs, and
create adverse tax consequences.
Sector
Risk. From time to time, based on market or economic conditions, the Fund
may have significant positions in one or more sectors of the market. To the
extent the Fund invests more heavily in particular sectors, its performance will
be especially sensitive to developments that significantly affect those sectors.
Individual sectors or sub-sectors may be more volatile, and may perform
differently, than the broader market. The industries that constitute a sector
may all react in the same way to economic, political or regulatory
events.
Securities
Lending Risk. Securities lending involves a possible delay in recovery of
the loaned securities or a possible loss of rights in the collateral should the
borrower fail financially. The Fund could also lose money if the value of the
collateral decreases.
A summary
of the Fund’s additional principal investment risks is as
follows:
Risk of
Increase in Expenses. A decline in the Fund’s average net assets during the
current fiscal year due to market volatility or other factors could cause the
Fund’s expenses for the current fiscal year to be higher than the expense
information presented in “Fees and Expenses.”
Operational
and Cybersecurity Risk. The Fund and its service providers, and your ability
to transact with the Fund, may be negatively impacted due to operational matters
arising from, among other problems, human errors, systems and technology
disruptions or failures, or cybersecurity incidents. Cybersecurity incidents may
allow an unauthorized party to gain access to fund assets, customer data, or
proprietary information, or cause the Fund or its service providers, as well as
the securities trading venues and their service providers, to suffer data
corruption or lose operational functionality. Cybersecurity incidents can result
from deliberate attacks or unintentional events. It is not possible for the
Manager or the other Fund service providers to identify all of the cybersecurity
or other operational risks that may affect the Fund or to develop processes and
controls to completely eliminate or mitigate their occurrence or effects. Most
issuers in which the Fund invests are heavily dependent on computers for data
storage and operations, and require ready access to the internet to conduct
their business. Thus, cybersecurity incidents could also affect issuers of
securities in which the Fund invests, leading to significant loss of
value.
Risk
Management. Risk is an essential part of investing. No risk management
program can eliminate the Fund’s exposure to adverse events; at best, it may
only reduce the possibility that the Fund will be affected by such events, and
especially those risks that are not intrinsic to the Fund’s investment program.
The Fund could experience losses if judgments about risk prove to be
incorrect.
Valuation
Risk. The Fund may not be able to sell an investment at the price at which
the Fund has valued the investment. Such differences could be significant,
particularly for illiquid securities and securities that trade in relatively
thin markets and/or markets that experience extreme volatility. If market or
other conditions make it difficult to value an investment, the Fund may be
required to value such investments using more subjective methods, known as fair
value methodologies. Using fair value methodologies to price investments may
result in a value that is different from an investment’s most recent price and
from the prices used by other funds to calculate their NAVs. The Fund uses
pricing services to provide values for certain securities and there is no
assurance that the Fund will be able to sell an investment at the price
established by such pricing services. The Fund’s ability to value its
investments in an accurate and timely manner may be impacted by technological
issues and/or errors by third party service providers, such as pricing services
or accounting agents.
PERFORMANCE
The
following bar chart and table provide an indication of the risks of investing in
the Fund. The bar chart
shows how the Fund’s performance has varied from year to year. The table below the bar chart shows
what the returns would equal if you averaged out actual performance over various
lengths of time and compares the returns with the returns of one or more
broad-based market indices. The
indices, which are described in “Descriptions of Indices” in the prospectus,
have characteristics relevant to the Fund’s investment strategy.
The following
performance prior to March 15, 2013, is that of the Fund’s Investor Class.
Because Investor Class has higher expenses than Class R6, its performance
typically would have been lower than that of Class
R6.
Returns
would have been lower if the Manager had not reimbursed certain expenses and/or
waived a portion of the investment management fees during certain of the periods
shown.
Past performance (before and
after taxes) is not a prediction of future results. Visit
www.nb.com
or call 800-366-6264 for
updated performance information.
year-by-year % Returns as of 12/31 each
year
Years |
Returns |
2013 |
32.31% |
2014 |
8.04% |
2015 |
1.61% |
2016 |
5.06% |
2017 |
25.58% |
2018 |
-5.72% |
2019 |
34.02% |
2020 |
39.80% |
2021 |
13.00% |
2022 |
-28.58% |
Best
quarter: Q2 2020 30.32%
Worst
quarter: Q2 2022 -20.65%
Year to Date performance as
of: 9/30/2023 6.41%
average annual total % returns as of
12/31/22
Mid Cap Growth
Fund |
|
1
Year |
|
5
Years |
|
10
Years |
Return
Before Taxes |
|
-28.58 |
|
7.35 |
|
10.57 |
Return
After Taxes on Distributions |
|
-29.36 |
|
5.06 |
|
8.27 |
Return
After Taxes on Distributions and Sale of Fund Shares |
|
-16.35 |
|
5.82 |
|
8.32 |
Russell
Midcap® Growth Index (reflects no deduction for
fees, expenses or taxes) |
|
-26.72 |
|
7.64 |
|
11.41 |
Russell
Midcap® Index (reflects no deduction for fees, expenses or
taxes) |
|
-17.32 |
|
7.10 |
|
10.96 |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local
taxes. Actual after-tax returns depend on an investor’s
tax situation and may differ from those shown. After-tax returns are not
relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. Return After Taxes on Distributions and Sale of
Fund Shares may be higher than other returns for the same period due to a tax
benefit of realizing a capital loss upon the sale of Fund
shares.
INVESTMENT
MANAGER
Neuberger
Berman Investment Advisers LLC (“Manager”) is the Fund’s investment
manager.
PORTFOLIO
MANAGERS
The Fund is
co-managed by Portfolio Managers Chad Bruso (Managing Director of the Manager),
Trevor Moreno (Managing Director of the Manager) and Associate Portfolio Manager
Jennifer Blachford (Senior Vice President of the Manager). Messrs. Bruso and
Moreno joined as Associate Portfolio Managers in January 2020 and became
co-Portfolio Managers in December 2021. Ms. Blachford has managed the Fund
since December 2021.
Buying
and Selling Shares
You may
purchase, redeem (sell) or exchange shares of the Fund on any day the New York
Stock Exchange is open, at the Fund’s net asset value per share next determined
after your order is received in proper form. Shares of the Fund generally are
available only through certain investment providers, such as banks, brokerage
firms, retirement plan administrators, and financial advisers. Contact any
investment provider authorized to sell the Fund’s shares. See “Maintaining Your
Account” in the prospectus for eligibility requirements for purchases of Class
R6 shares.
For certain
institutional investors, shares of the Fund may be available directly from
Neuberger Berman BD LLC by regular, first class mail (Neuberger Berman Funds,
P.O. Box 219189, Kansas City, MO 64121-9189), by express delivery, registered
mail, or certified mail (Neuberger Berman Funds, 430 West 7th Street,
Suite 219189, Kansas City, MO 64105-1407), or by wire, fax, telephone, or
exchange (call 800-366-6264 for instructions). See “Maintaining Your Account” in
the prospectus for eligibility requirements for direct purchases of shares and
for instructions on buying and redeeming (selling) shares directly.
The Fund
does not impose minimum purchase requirements for Class R6 shares. However, you
should contact your investment provider to determine whether it imposes minimum
purchase requirements.
Tax
Information
Unless you
invest in the Fund through a tax-advantaged retirement plan or account or are a
tax-exempt investor, you will be subject to tax on Fund distributions to you of
ordinary income and/or net capital gains. Those distributions generally are not
taxable to such a plan or account or a tax-exempt investor, although withdrawals
from certain retirement plans and accounts generally are subject to federal
income tax.
Payments
to Investment Providers and Other Financial Intermediaries
If you
purchase shares of another class of the Fund through an investment provider or
other financial intermediary, such as a bank, brokerage firm, workplace
retirement program, or financial adviser (who may be affiliated with Neuberger
Berman), the Fund and/or Neuberger Berman BD LLC and/or its affiliates may pay
the intermediary for the sale of shares of those other classes of the Fund and
related services. These payments may create a conflict of interest by
influencing the investment provider or other financial intermediary and its
employees to recommend the Fund or those other classes of the Fund over another
investment. Neuberger Berman does not provide ongoing payments to third
parties for any record-keeping or administrative services in connection with
investments in Class R6. To the extent the Fund makes such payments with
respect to another class, they can come only out of the assets of that other
class.
Neuberger Berman Mid Cap Intrinsic Value Fund
Class R6
Shares (NBMRX)
GOAL
The Fund
seeks growth of capital.
Fees and
Expenses
These tables
describe the fees and expenses that you may pay if you buy, hold or sell shares
of the Fund. You may pay other fees, such as brokerage commissions and other
fees to financial intermediaries, which are not reflected in the table and
example below.
Shareholder Fees (fees paid
directly from your investment) |
|
None |
Annual Fund Operating Expenses
(expenses that you pay each year as a % of the value of your
investment) |
|
|
Management
fees |
|
0.60 |
Distribution
and/or shareholder service (12b-1) fees |
|
None |
Other
expenses |
|
1.11 |
Total
annual operating expenses |
|
1.71 |
Fee
waivers and/or expense reimbursement |
|
0.96 |
Total
annual operating expenses after fee waivers and/or expense
reimbursement1 |
|
0.75 |
Expense
Example
The expense
example can help you compare costs among mutual funds. The example assumes that
you invested $10,000 for the periods shown, that you redeemed all of your shares
at the end of those periods, that the Fund earned a hypothetical 5% total return
each year, and that the Fund’s expenses were those in the table. Actual
performance and expenses may be higher or lower.
|
|
1
Year |
|
3
Years |
|
5
Years |
|
10
Years |
Class
R6 |
|
$77 |
|
$240 |
|
$640 |
|
$1,762 |
Portfolio
Turnover
The Fund
pays transaction costs, such as commissions, when it buys and sells securities
(or “turns over” its portfolio). A higher portfolio turnover rate may indicate
higher transaction costs and may result in higher taxes when Fund shares are
held in a taxable account. These costs, which are not reflected in annual
operating expenses or in the example, affect the Fund’s performance. During the
most recent fiscal year, the Fund’s portfolio turnover rate was 15% of the average
value of its portfolio.
Principal Investment
Strategies
To pursue
its goal, the Fund normally invests at least 80% of its net assets in equity
securities of mid-capitalization companies, which it defines as those with a
total market capitalization within the market capitalization range of the
Russell Midcap® Value Index at the time of purchase.
The Fund’s
strategy consists of using a bottom-up, fundamental research driven approach to
identify stocks of companies that are trading below the Portfolio Managers’
estimate of their intrinsic value and that they believe have the potential for
appreciation over time. The Portfolio Managers’ estimate of a company’s
intrinsic value represents their view of the company’s true, long-term economic
worth, the market’s view of which may be currently distorted by market
inefficiencies. The intrinsic value estimate represents what the Portfolio
Managers believe a company could be worth if it is acquired, if its
profitability returns to its long-term average level, or if its valuation moves
in line with those companies that the Portfolio Managers see as its publicly
traded peers.
74
Mid Cap Intrinsic Value Fund
The
Portfolio Managers believe that while markets are often efficient, valuations of
certain types of companies are often distorted by market inefficiencies, which
can lead to attractive investment opportunities. The Portfolio Managers attempt
to exploit recurring market inefficiencies among the following types of
companies as the Portfolio Managers believe these types of companies are often
misunderstood and mispriced by investors.
■ |
Complex
Companies: These companies typically have multiple lines of business
that are in different industries or sectors and/or that have different
growth rates and profitability characteristics. |
■ |
Cyclical
Companies: These companies typically have ebbs and flows in their
business depending on demand patterns for their products, the length of
product cycles, or other transient factors. |
■ |
Companies
in a Period of Interrupted Growth: Typically, these are companies in
attractive, high growth markets that have suffered what the Portfolio
Managers believe is a temporary setback and/or are in transition to a more
mature, lower growth business model that focuses more on current earnings
than on rapid growth. |
In seeking
to identify potential investment opportunities, the Portfolio Managers perform
an initial screening to identify those companies that have stock prices that are
trailing the performance of the overall market and that they believe are
attractive relative to current cash flows. Next, the Portfolio Managers
establish an estimate of a company’s intrinsic value. The Portfolio Managers
will invest in a company based on its discount to their estimate of intrinsic
value and their belief in its potential for appreciation over time. In addition,
the Portfolio Managers may invest in anticipation of a catalyst that can be
expected to close the value/price gap, such as a merger, restructuring,
liquidation, spin-off, major management change, share repurchase, or capital
reallocation. The Portfolio Managers will typically visit a company and
interview its management team to help understand management’s incentives (such
as equity ownership in the company and compensation plans), the merits of its
strategic plan, and other factors that have the potential to increase the value
of the company’s stock.
The
Portfolio Managers establish an intrinsic value for a company’s stock when it is
purchased and then continues to evaluate the company’s stock price versus their
estimate of its intrinsic value to determine whether to maintain, add to, reduce
or eliminate the position. The Portfolio Managers typically reduce or eliminate
a position in a company’s stock if the stock’s price appreciates and the
company’s discount to their estimate of its intrinsic value narrows. The
Portfolio Managers’ decision to reduce or eliminate a position in a particular
stock may also be driven by their belief that another company’s stock has a
wider discount to their estimate of its intrinsic value. Changes in a company’s
management or corporate strategy, or the failure of a company to perform as
expected, may also cause the Portfolio Managers to reduce or eliminate a
position in that company’s stock.
Although the
Fund invests primarily in domestic stocks, it may also invest in stocks of
foreign companies. The Fund may also invest in real estate investment trusts
(“REITs”).
The Fund may
invest in restricted securities, including private placements, which are
securities that are subject to legal restrictions on their sale and may not be
sold to the public unless registered under the applicable securities law or
pursuant to an applicable exemption.
The Fund
seeks to reduce risk by diversifying among many companies, sectors and
industries. At times, the Portfolio Managers may emphasize certain sectors or
industries that they believe may benefit from market or economic
trends.
The Fund
will not change its strategy of normally investing at least 80% of its net
assets in equity securities of mid-capitalization companies, without providing
shareholders at least 60 days’ notice. This test is applied at the time the Fund
invests; later percentage changes caused by a change in Fund assets, market
values or company circumstances will not require the Fund to dispose of a
holding.
PRINCIPAL INVESTMENT
RISKS
Most of the
Fund’s performance depends on what happens in the stock market, the Portfolio
Managers’ evaluation of those developments, and the success of the Portfolio
Managers in implementing the Fund’s investment strategies. The market’s behavior
can be difficult to predict, particularly in the short term. There can be no
guarantee that the Fund will achieve its goal. The Fund may take temporary
defensive and cash management positions; to the extent it does, it will not be
pursuing its principal investment strategies.
The actual
risk exposure taken by the Fund in its investment program will vary over time,
depending on various factors including the Portfolio Managers’ evaluation of
issuer, political, regulatory, market, or economic developments. There can be no
guarantee that the Portfolio Managers will be successful in their attempts to
manage the risk exposure of the Fund or will appropriately evaluate or weigh the
multiple factors involved in investment decisions, including issuer, market
and/or instrument-specific analysis and valuation.
75
Mid Cap Intrinsic Value Fund
The Fund is a mutual fund, not a bank deposit, and is not
guaranteed or insured by the Federal Deposit Insurance Corporation or any other
government agency. The value of your investment may fall, sometimes sharply,
and you could lose money by investing in the
Fund.
Each of the
following risks, which are described in alphabetical order and not in order of
any presumed importance, can significantly affect the Fund’s performance. The
relative importance of, or potential exposure as a result of, each of these
risks will vary based on market and other investment-specific
considerations.
Catalyst
Risk. Investing in companies in anticipation of a catalyst carries the risk
that the catalyst may not happen as anticipated, or the market may react to the
catalyst differently than expected.
Currency
Risk. Currency risk is the risk that foreign currencies will decline in
value relative to the U.S. dollar. To the extent that the Fund invests in
securities or other instruments denominated in or indexed to foreign currencies,
changes in currency exchange rates could adversely impact investment gains or
add to investment losses. Currency exchange rates may fluctuate significantly
over short periods of time and can be affected unpredictably by various factors,
including investor perception and changes in interest rates; intervention, or
failure to intervene, by U.S. or foreign governments, central banks, or
supranational entities; or by currency controls or political developments in the
U.S. or abroad.
Foreign
Risk. Foreign securities involve risks in addition to those associated with
comparable U.S. securities. Additional risks include exposure to less developed
or less efficient trading markets; social, political, diplomatic, or economic
instability; trade barriers and other protectionist trade policies (including
those of the U.S.); imposition of economic sanctions against a particular
country or countries, organizations, companies, entities and/or individuals;
significant government involvement in an economy and/or market structure;
fluctuations in foreign currencies or currency redenomination; potential for
default on sovereign debt; nationalization or expropriation of assets;
settlement, custodial or other operational risks; higher transaction costs;
confiscatory withholding or other taxes; and less stringent auditing and
accounting, corporate disclosure, governance, and legal standards. As a result,
foreign securities may fluctuate more widely in price, and may also be less
liquid, than comparable U.S. securities. World markets, or those in a particular
region, may all react in similar fashion to important economic or political
developments. In addition, foreign markets may perform differently than the U.S.
markets. The effect of economic instability on specific foreign markets or
issuers may be difficult to predict or evaluate. Regardless of where a company
is organized or its stock is traded, its performance may be affected
significantly by events in regions from which it derives its profits or in which
it conducts significant operations.
Securities
of issuers traded on foreign exchanges may be suspended, either by the issuers
themselves, by an exchange, or by governmental authorities. Trading suspensions
may be applied from time to time to the securities of individual issuers for
reasons specific to that issuer, or may be applied broadly by exchanges or
governmental authorities in response to market events. In the event that the
Fund holds material positions in such suspended securities or instruments, the
Fund’s ability to liquidate its positions or provide liquidity to investors may
be compromised and the Fund could incur significant losses.
Issuer-Specific
Risk. An individual security may be more volatile, and may perform
differently, than the market as a whole.
Liquidity
Risk. From time to time, the trading market for a particular investment in
which the Fund invests, or a particular type of instrument in which the Fund is
invested, may become less liquid or even illiquid. Illiquid investments
frequently can be more difficult to purchase or sell at an advantageous price or
time, and there is a greater risk that the investments may not be sold for the
price at which the Fund is carrying them. Certain investments that were liquid
when the Fund purchased them may become illiquid, sometimes abruptly.
Additionally, market closures due to holidays or other factors may render a
security or group of securities (e.g., securities tied to a particular country
or geographic region) illiquid for a period of time. An inability to sell a
portfolio position can adversely affect the Fund’s value or prevent the Fund
from being able to take advantage of other investment opportunities. Market
prices for such securities or other investments may be volatile. During periods
of substantial market volatility, an investment or even an entire market segment
may become illiquid, sometimes abruptly, which can adversely affect the Fund’s
ability to limit losses.
Unexpected
episodes of illiquidity, including due to market or political factors,
instrument or issuer-specific factors and/or unanticipated outflows or other
factors, may limit the Fund’s ability to pay redemption proceeds within the
allowable time period. To meet redemption requests during periods of
illiquidity, the Fund may be forced to sell securities at an unfavorable time
and/or under unfavorable conditions.
Market
Volatility Risk. Markets may be volatile and values of individual securities
and other investments, including those of a particular type, may decline
significantly in response to adverse issuer, political, regulatory, market,
economic or other developments that may cause broad changes in market value,
public perceptions concerning these developments, and adverse
76
Mid Cap Intrinsic Value Fund
investor
sentiment or publicity. Geopolitical and other risks, including environmental
and public health risks may add to instability in world economies and markets
generally. Changes in value may be temporary or may last for extended periods.
If the Fund sells a portfolio position before it reaches its market peak, it may
miss out on opportunities for better performance.
Mid-Cap
Companies Risk. At times, mid-cap companies may be out of favor with
investors. Compared to larger companies, mid-cap companies may depend on a more
limited management group, may have a shorter history of operations, less
publicly available information, less stable earnings, and limited product lines,
markets or financial resources. The securities of mid-cap companies are often
more volatile, which at times can be rapid and unpredictable, and less liquid
than the securities of larger companies and may be more affected than other
types of securities by the underperformance of a sector, during market
downturns, or by adverse publicity and investor perceptions.
Private
Placements and Other Restricted Securities Risk. Private placements and
other restricted securities, including securities for which Fund management has
material non-public information, are securities that are subject to legal and/or
contractual restrictions on their sales. These securities may not be sold to the
public unless certain conditions are met, which may include registration under
the applicable securities laws. As a result of the absence of a public trading
market, the prices of these securities may be more difficult to determine than
publicly traded securities and these securities may involve heightened risk as
compared to investments in securities of publicly traded companies. Private
placements and other restricted securities may be illiquid, and it frequently
can be difficult to sell them at a time when it may otherwise be desirable to do
so or the Fund may be able to sell them only at prices that are less than what
the Fund regards as their fair market value. Transaction costs may be higher for
these securities. In addition, the Fund may get only limited information about
the issuer of a private placement or other restricted security.
Recent
Market Conditions. Both U.S. and international markets have experienced
significant volatility in recent months and years. As a result of such
volatility, investment returns may fluctuate significantly. National economies
are substantially interconnected, as are global financial markets, which creates
the possibility that conditions in one country or region might adversely impact
issuers in a different country or region. However, the interconnectedness of
economies and/or markets may be diminishing, which may impact such economies and
markets in ways that cannot be foreseen at this time.
Although
interest rates were unusually low in recent years in the U.S. and abroad,
recently, the Federal Reserve and certain foreign central banks raised interest
rates as part of their efforts to address rising inflation. It is difficult to
accurately predict the pace at which interest rates might increase, the timing,
frequency or magnitude of any such increases in interest rates, or when such
increases might stop. Additionally, various economic and political factors could
cause the Federal Reserve or other foreign central banks to change their
approach in the future and such actions may result in an economic slowdown both
in the U.S. and abroad. Unexpected changes in interest rates could lead to
market volatility or reduce liquidity in certain sectors of the market.
Deteriorating economic fundamentals may, in turn, increase the risk of default
or insolvency of particular issuers, negatively impact market value, cause
credit spreads to widen, and reduce bank balance sheets. Any of these could
cause an increase in market volatility, or reduce liquidity across various
markets or decrease confidence in the markets.
Some
countries, including the U.S., have adopted more protectionist trade policies.
Slowing global economic growth, the rise in protectionist trade policies,
changes to some major international trade agreements, risks associated with the
trade agreement between the United Kingdom and the European Union, and the risks
associated with trade negotiations between the U.S. and China, could affect the
economies of many nations in ways that cannot necessarily be foreseen at the
present time. In addition, the current strength of the U.S. dollar may decrease
foreign demand for U.S. assets, which could have a negative impact on certain
issuers and/or industries.
Regulators
in the U.S. have proposed and adopted a number of changes to regulations
involving the markets and issuers, some of which apply to the Fund. The full
effect of various newly adopted regulations is not currently known.
Additionally, it is not currently known whether any of the proposed regulations
will be adopted. However, due to the scope of regulations being proposed and
adopted, certain of these changes to regulation could limit the Fund’s ability
to pursue its investment strategies or make certain investments, may make it
more costly for it to operate, or adversely impact performance.
Tensions,
war, or open conflict between nations, such as between Russia and Ukraine, in
the Middle East, or in eastern Asia could affect the economies of many nations,
including the United States. The duration of ongoing hostilities and any
sanctions and related events cannot be predicted. Those events present material
uncertainty and risk with respect to markets globally and the performance of the
Fund and its investments or operations could be negatively impacted.
High public
debt in the U.S. and other countries creates ongoing systemic and market risks
and policymaking uncertainty. There is no assurance that the U.S. Congress will
act to raise the nation’s debt ceiling; a failure to do so could cause market
turmoil and
77
Mid Cap Intrinsic Value Fund
substantial
investment risks that cannot now be fully predicted. Unexpected political,
regulatory and diplomatic events within the U.S. and abroad may affect investor
and consumer confidence and may adversely impact financial markets and the
broader economy.
There is
widespread concern about the potential effects of global climate change on
property and security values. Certain issuers, industries and regions may be
adversely affected by the impact of climate change in ways that cannot be
foreseen. The impact of legislation, regulation and international accords
related to climate change may negatively impact certain issuers and/or
industries.
Redemption
Risk. The Fund may experience periods of large or frequent redemptions that
could cause the Fund to sell assets at inopportune times, which could have a
negative impact on the Fund’s overall liquidity, or at a loss or depressed
value. Redemption risk is greater to the extent that one or more investors or
intermediaries control a large percentage of investments in the Fund and the
risk is heightened during periods of declining or illiquid markets. Large
redemptions could hurt the Fund’s performance, increase transaction costs, and
create adverse tax consequences.
REITs and
Other Real Estate Companies Risk. REITs and other real estate company
securities are subject to risks similar to those of direct investments in real
estate and the real estate industry in general, including, among other risks:
general and local economic conditions; changes in interest rates; declines in
property values; defaults by mortgagors or other borrowers and tenants;
increases in property taxes and other operating expenses; overbuilding in their
sector of the real estate market; fluctuations in rental income; lack of
availability of mortgage funds or financing; extended vacancies of properties,
especially during economic downturns; changes in tax and regulatory
requirements; losses due to environmental liabilities; casualty or condemnation
losses; changing social trends regarding working arrangements; or other
economic, social, political, or regulatory matters affecting the real estate
industry. REITs also are dependent upon the skills of their managers and are
subject to heavy cash flow dependency or self-liquidation.
Regardless
of where a REIT is organized or traded, its performance may be affected
significantly by events in the region where its properties are located. Domestic
REITs could be adversely affected by failure to qualify for tax-free
“pass-through” of distributed net investment income and net realized gains under
the Internal Revenue Code of 1986, as amended, (“Code”) or to maintain their
exemption from registration under the Investment Company Act of 1940, as
amended. The value of REIT common shares may decline when interest rates rise.
REITs and other real estate company securities tend to be small- to mid-cap
securities and are subject to the risks of investing in small- to mid-cap
securities.
Sector
Risk. From time to time, based on market or economic conditions, the Fund
may have significant positions in one or more sectors of the market. To the
extent the Fund invests more heavily in particular sectors, its performance will
be especially sensitive to developments that significantly affect those sectors.
Individual sectors or sub-sectors may be more volatile, and may perform
differently, than the broader market. The industries that constitute a sector
may all react in the same way to economic, political or regulatory
events.
Value
Stock Risk. Value stocks may remain undervalued for extended periods of
time, may decrease in value during a given period, may not ever realize what the
portfolio management team believes to be their full value or intrinsic value, or
the portfolio management team’s assumptions about intrinsic value or potential
for appreciation may be incorrect. This may happen, among other reasons, because
of a failure to anticipate which stocks or industries would benefit from
changing market or economic conditions or investor preferences.
A summary
of the Fund’s additional principal investment risks is as
follows:
Risk of
Increase in Expenses. A decline in the Fund’s average net assets during the
current fiscal year due to market volatility or other factors could cause the
Fund’s expenses for the current fiscal year to be higher than the expense
information presented in “Fees and Expenses.”
Operational
and Cybersecurity Risk. The Fund and its service providers, and your ability
to transact with the Fund, may be negatively impacted due to operational matters
arising from, among other problems, human errors, systems and technology
disruptions or failures, or cybersecurity incidents. Cybersecurity incidents may
allow an unauthorized party to gain access to fund assets, customer data, or
proprietary information, or cause the Fund or its service providers, as well as
the securities trading venues and their service providers, to suffer data
corruption or lose operational functionality. Cybersecurity incidents can result
from deliberate attacks or unintentional events. It is not possible for the
Manager or the other Fund service providers to identify all of the cybersecurity
or other operational risks that may affect the Fund or to develop processes and
controls to completely eliminate or mitigate their occurrence or effects. Most
issuers in which the Fund invests are heavily dependent on computers for data
storage and operations, and require ready access to the internet to conduct
their business. Thus, cybersecurity incidents could also affect issuers of
securities in which the Fund invests, leading to significant loss of
value.
78
Mid Cap Intrinsic Value Fund
Risk
Management. Risk is an essential part of investing. No risk management
program can eliminate the Fund’s exposure to adverse events; at best, it may
only reduce the possibility that the Fund will be affected by such events, and
especially those risks that are not intrinsic to the Fund’s investment program.
The Fund could experience losses if judgments about risk prove to be
incorrect.
Valuation
Risk. The Fund may not be able to sell an investment at the price at which
the Fund has valued the investment. Such differences could be significant,
particularly for illiquid securities and securities that trade in relatively
thin markets and/or markets that experience extreme volatility. If market or
other conditions make it difficult to value an investment, the Fund may be
required to value such investments using more subjective methods, known as fair
value methodologies. Using fair value methodologies to price investments may
result in a value that is different from an investment’s most recent price and
from the prices used by other funds to calculate their NAVs. The Fund uses
pricing services to provide values for certain securities and there is no
assurance that the Fund will be able to sell an investment at the price
established by such pricing services. The Fund’s ability to value its
investments in an accurate and timely manner may be impacted by technological
issues and/or errors by third party service providers, such as pricing services
or accounting agents.
PERFORMANCE
The
following bar chart and table provide an indication of the risks of investing in
the Fund. The bar chart
shows how the Fund’s performance has varied from year to year. The table below the bar chart shows
what the returns would equal if you averaged out actual performance over various
lengths of time and compares the returns with the returns of one or more
broad-based market indices. The
indices, which are described in “Descriptions of Indices” in the prospectus,
have characteristics relevant to the Fund’s investment strategy.
The following
performance prior to March 29, 2019 is that of the Fund’s Investor Class.
Because Investor Class has higher expenses than Class R6, its performance
typically would have been lower than that of Class
R6.
Returns
would have been lower if the Manager had not reimbursed certain expenses and/or
waived a portion of the investment management fees during certain of the periods
shown.
Past performance (before and
after taxes) is not a prediction of future results. Visit
www.nb.com
or call 800-366-6264 for
updated performance information.
year-by-year % Returns as of 12/31 each
year
Years |
Returns |
2013 |
36.67% |
2014 |
13.15% |
2015 |
-8.04% |
2016 |
18.06% |
2017 |
16.70% |
2018 |
-14.80% |
2019 |
17.53% |
2020 |
-3.83% |
2021 |
32.86% |
2022 |
-9.56% |
Best
quarter: Q4 2020 28.60%
Worst
quarter: Q1 2020 -40.48%
Year to Date performance as
of: 9/30/2023 0.26%
79
Mid Cap Intrinsic Value Fund
average annual total % returns as of
12/31/22
Mid Cap Intrinsic Value
Fund |
|
1
Year |
|
5
Years |
|
10
Years |
Return
Before Taxes |
|
-9.56 |
|
2.96 |
|
8.53 |
Return
After Taxes on Distributions |
|
-9.79 |
|
2.30 |
|
7.29 |
Return
After Taxes on Distributions and Sale of Fund Shares |
|
-5.49 |
|
2.13 |
|
6.64 |
Russell
Midcap® Value Index (reflects no deduction for
fees, expenses or taxes) |
|
-12.03 |
|
5.72 |
|
10.11 |
Russell
Midcap® Index (reflects no deduction for fees, expenses or
taxes) |
|
-17.32 |
|
7.10 |
|
10.96 |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local
taxes. Actual after-tax returns depend on an investor’s
tax situation and may differ from those shown. After-tax returns are not
relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. Return After Taxes on
Distributions and Sale of Fund Shares may be higher than other returns for the
same period due to a tax benefit of realizing a capital loss upon the sale of
Fund shares.
INVESTMENT
MANAGER
Neuberger
Berman Investment Advisers LLC (“Manager”) is the Fund’s investment
manager.
PORTFOLIO
MANAGERS
The Fund is
co-managed by Michael C. Greene (Managing Director of the Manager), Benjamin H.
Nahum (Managing Director of the Manager), James F. McAree (Managing Director of
the Manager), Amit Solomon (Managing Director of the Manager), and Rand W.
Gesing (Senior Vice President of the Manager). Mr. Greene has managed the Fund
since December 2011 and Messrs. Nahum, McAree, Solomon and Gesing have
managed the Fund since May 2021.
Buying
and Selling Shares
You may
purchase, redeem (sell) or exchange shares of the Fund on any day the New York
Stock Exchange is open, at the Fund’s net asset value per share next determined
after your order is received in proper form. Shares of the Fund generally are
available only through certain investment providers, such as banks, brokerage
firms, retirement plan administrators, and financial advisers. Contact any
investment provider authorized to sell the Fund’s shares. See “Maintaining Your
Account” in the prospectus for eligibility requirements for purchases of Class
R6 shares.
For certain
institutional investors, shares of the Fund may be available directly from
Neuberger Berman BD LLC by regular, first class mail (Neuberger Berman Funds,
P.O. Box 219189, Kansas City, MO 64121-9189), by express delivery, registered
mail, or certified mail (Neuberger Berman Funds, 430 West 7th Street,
Suite 219189, Kansas City, MO 64105-1407), or by wire, fax, telephone, or
exchange (call 800-366-6264 for instructions). See “Maintaining Your Account” in
the prospectus for eligibility requirements for direct purchases of shares and
for instructions on buying and redeeming (selling) shares directly.
The Fund
does not impose minimum purchase requirements for Class R6 shares. However, you
should contact your investment provider to determine whether it imposes minimum
purchase requirements.
Tax
Information
Unless you
invest in the Fund through a tax-advantaged retirement plan or account or are a
tax-exempt investor, you will be subject to tax on Fund distributions to you of
ordinary income and/or net capital gains. Those distributions generally are not
taxable to such a plan or account or a tax-exempt investor, although withdrawals
from certain retirement plans and accounts generally are subject to federal
income tax.
Payments
to Investment Providers and Other Financial Intermediaries
If you
purchase shares of another class of the Fund through an investment provider or
other financial intermediary, such as a bank, brokerage firm, workplace
retirement program, or financial adviser (who may be affiliated with Neuberger
Berman), the Fund and/or Neuberger Berman BD LLC and/or its affiliates may pay
the intermediary for the sale of shares of those other classes of the Fund and
related services. These payments may create a conflict of interest by
influencing the investment provider or other financial intermediary and its
employees to recommend the Fund or those other classes of the Fund over another
investment. Neuberger Berman does not provide ongoing payments to third
parties for any record-keeping or administrative services in connection with
investments in Class R6. To the extent the Fund makes such payments with
respect to another class, they can come only out of the assets of that other
class.
80
Mid Cap Intrinsic Value Fund
Neuberger Berman Real Estate Fund
Class R6
Shares (NRREX)
GOAL
The Fund
seeks total return through investment in real estate securities, emphasizing
both capital appreciation and current income.
Fees and
Expenses
These tables
describe the fees and expenses that you may pay if you buy, hold or sell shares
of the Fund. You may pay other fees, such as brokerage commissions and other
fees to financial intermediaries, which are not reflected in the table and
example below.
Shareholder Fees (fees paid
directly from your investment) |
|
None |
Annual Fund Operating Expenses
(expenses that you pay each year as a % of the value of your
investment) |
|
|
Management
fees |
|
0.85 |
Distribution
and/or shareholder service (12b-1) fees |
|
None |
Other
expenses |
|
0.09 |
Total
annual operating expenses |
|
0.94 |
Fee
waivers and/or expense reimbursement |
|
0.18 |
Total
annual operating expenses after fee waivers and/or expense
reimbursement1 |
|
0.76 |
Expense
Example
The expense
example can help you compare costs among mutual funds. The example assumes that
you invested $10,000 for the periods shown, that you redeemed all of your shares
at the end of those periods, that the Fund earned a hypothetical 5% total return
each year, and that the Fund’s expenses were those in the table. Actual
performance and expenses may be higher or lower.
|
|
1
Year |
|
3
Years |
|
5
Years |
|
10
Years |
Class
R6 |
|
$78 |
|
$243 |
|
$465 |
|
$1,102 |
Portfolio
Turnover
The Fund pays transaction
costs, such as commissions, when it buys and sells securities (or “turns over”
its portfolio). A higher portfolio turnover rate may indicate higher transaction
costs and may result in higher taxes when Fund shares are held in a taxable
account. These costs, which are not reflected in annual operating expenses or in
the example, affect the Fund’s performance. During the most recent fiscal year,
the Fund’s portfolio turnover rate was 38% of the average
value of its portfolio.
Principal Investment
Strategies
To pursue its goal, the Fund normally
invests at least 80% of its net assets in equity securities issued by real
estate investment trusts (“REITs”) and common stocks and other securities issued
by other real estate companies. The Fund defines a real estate company as one
that derives at least 50% of its revenue from, or has at least 50% of its assets
in, real estate.
The Fund may invest up to 20%
of its net assets in debt securities of real estate companies. These debt
securities can be either investment grade securities or below investment grade
securities (commonly known as “junk bonds”), provided that, at the time of
investment, they are rated at least B by S&P Global Ratings or Moody’s
Investors Service, Inc. (or comparably rated by at least one independent credit
rating agency) or, if unrated, are determined by the Portfolio Managers to be of
comparable quality. The Fund does not normally intend to continue holding
securities that are in default or have defaulted with respect to the payment of
interest or repayment of principal, but may do so depending on market
conditions.
The Portfolio Managers make
investment decisions through a fundamental analysis of each company. The
Portfolio Managers review each company’s current financial condition and
industry position, as well as economic and market conditions. In doing so, they
evaluate the company’s growth potential, earnings estimates and quality of
management, as well as other factors. In an effort to achieve its goal, the Fund
may engage in active and frequent trading.
As part of their fundamental
investment analysis the Portfolio Managers consider Environmental, Social and
Governance (ESG) factors they believe are financially material to individual
investments, where applicable, as described below. While this analysis is
inherently subjective and may be informed by both internally generated and
third-party metrics, data and other information, the Portfolio Managers believe
that the consideration of financially material ESG factors, alongside
traditional financial metrics, may enhance the Fund’s overall investment
process. The consideration of ESG factors does not apply to certain instruments,
such as certain derivative instruments, other registered investment companies,
cash and cash equivalents. The consideration of ESG factors as part of the
investment process does not mean that the Fund pursues a specific “impact” or
“sustainable” investment strategy.
The Fund is a non-diversified
fund, which means that it can invest more of its assets in fewer companies than
a diversified fund. The Fund concentrates its assets in the real estate
industry. The Fund may at times emphasize particular sub-sectors of the real
estate business — for example, apartments, regional malls, offices,
infrastructure, industrial, and health care.
Some of the REITs and other
real estate securities in which the Fund invests may be preferred stock, which
receives preference in the payment of dividends.
The Fund normally seeks to
invest for the long-term, but it may sell securities regardless of how long they
have been held if the Portfolio Managers find an opportunity they believe is
more compelling, or if the Portfolio Managers’ outlook on the company or the
market changes, if a stock reaches a target price, if a company’s business fails
to perform as expected, or when other opportunities appear more
attractive.
The Fund will not change its
strategy of normally investing at least 80% of its net assets in equity
securities issued by REITs and common stocks and other securities issued by
other real estate companies, without providing shareholders at least 60 days’
notice. This test and the test of whether a company is a real estate company are
applied at the time the Fund invests; later percentage changes caused by a
change in Fund assets, market values or company circumstances will not require
the Fund to dispose of a holding.
PRINCIPAL INVESTMENT
RISKS
Most of the Fund’s
performance depends on what happens in the stock and real estate markets, the
Portfolio Managers’ evaluation of those developments, and the success of the
Portfolio Managers in implementing the Fund’s investment strategies. The
markets’ behavior can be difficult to predict, particularly in the short term.
There can be no guarantee that the Fund will achieve its goal. The Fund may take
temporary defensive and cash management positions; to the extent it does, it
will not be pursuing its principal investment strategies.
The actual risk exposure
taken by the Fund in its investment program will vary over time, depending on
various factors including the Portfolio Managers’ evaluation of issuer,
political, regulatory, market, or economic developments. There can be no
guarantee that the Portfolio Managers will be successful in their attempts to
manage the risk exposure of the Fund or will appropriately evaluate or weigh the
multiple factors involved in investment decisions, including issuer, market
and/or instrument-specific analysis, valuation and ESG factors.
The Fund is a mutual fund, not a bank deposit, and is not
guaranteed or insured by the Federal Deposit Insurance Corporation or any other
government agency. The value of your investment may fall, sometimes sharply,
and you could lose money by investing in the
Fund.
Each of the following risks,
which are described in alphabetical order and not in order of any presumed
importance, can significantly affect the Fund’s performance. The relative
importance of, or potential exposure as a result of, each of these risks will
vary based on market and other investment-specific considerations.
Credit Risk. Credit
risk is the risk that issuers, guarantors, or insurers may fail, or become less
able or unwilling, to pay interest and/or principal when due. Changes in the
actual or perceived creditworthiness of an issuer or a downgrade or default
affecting any of the Fund’s securities could affect the Fund’s performance by
affecting the credit quality or value of the Fund’s securities. Generally, the
longer the maturity and the lower the credit quality of a security, the more
sensitive it is to credit risk.
Dividend Risk. There
is no guarantee that the companies in which the Fund invests will declare
dividends in the future or that dividends, if declared, will remain at current
levels or increase over time. Changes in a company’s dividend policies may
negatively
impact the Fund. Securities
that pay dividends may be sensitive to changes in interest rates, and as
interest rates rise or fall, the prices of such securities may be impacted.
During a broad market advance, securities that pay dividends may not appreciate
as much as securities that do not pay dividends.
High Portfolio Turnover
Risk. The Fund may engage in active and frequent trading and may have a high
portfolio turnover rate, which may increase the Fund’s transaction costs, may
adversely affect the Fund’s performance and may generate a greater amount of
capital gain distributions to shareholders than if the Fund had a low portfolio
turnover rate.
Interest Rate Risk. In
general, the value of investments with interest rate risk, such as debt
securities, will move in the direction opposite to movements in interest rates.
If interest rates rise, the value of such securities may decline. Typically, the
longer the maturity or duration of a debt security, the greater the effect a
change in interest rates could have on the security’s price. Thus, the
sensitivity of the Fund’s debt securities to interest rate risk will increase
with any increase in the duration of those securities.
Issuer-Specific Risk.
An individual security may be more volatile, and may perform differently, than
the market as a whole.
Lower-Rated Debt
Securities Risk. Lower-rated debt securities (commonly known as “junk
bonds”) and unrated debt securities determined to be of comparable quality
involve greater risks than investment grade debt securities. Such securities may
fluctuate more widely in price and yield and may fall in price, sometimes
abruptly, due to changes in interest rates, market activity, economic
conditions, such as when economic conditions are deteriorating or are expected
to deteriorate, or other factors. These securities may be less liquid, may
require a greater degree of judgment to establish a price and may be difficult
to sell at the time and price the Fund desires. Lower-rated debt securities are
considered by the major rating agencies to be predominantly speculative with
respect to the issuer’s continuing ability to pay principal and interest and
carry a greater risk that the issuer of such securities will default in the
timely payment of principal and interest. Issuers of securities that are in
default or have defaulted may fail to resume principal or interest payments, in
which case the Fund may lose its entire investment. The creditworthiness of
issuers of these securities may be more complex to analyze than that of issuers
of investment grade debt securities, and the overreliance on credit ratings may
present additional risks.
Market Capitalization
Risk. To the extent the Fund invests in securities of small-, mid-, or
large-cap companies, it takes on the associated risks. At times, any of these
market capitalizations may be out of favor with investors. Compared to small-
and mid-cap companies, large-cap companies may be unable to respond as quickly
to changes and opportunities and may grow at a slower rate. Compared to
large-cap companies, small- and mid-cap companies may depend on a more limited
management group, may have a shorter history of operations, less publicly
available information, less stable earnings, and limited product lines, markets
or financial resources. The securities of small- and mid-cap companies are often
more volatile, which at times can be rapid and unpredictable, and less liquid
than the securities of larger companies and may be more affected than other
types of securities by the underperformance of a sector, during market
downturns, or by adverse publicity and investor perceptions.
Market Volatility
Risk. Markets may be volatile and values of individual securities and other
investments, including those of a particular type, may decline significantly in
response to adverse issuer, political, regulatory, market, economic or other
developments that may cause broad changes in market value, public perceptions
concerning these developments, and adverse investor sentiment or publicity.
Geopolitical and other risks, including environmental and public health risks
may add to instability in world economies and markets generally. Changes in
value may be temporary or may last for extended periods. If the Fund sells a
portfolio position before it reaches its market peak, it may miss out on
opportunities for better performance.
Non-Diversified Fund
Risk. The Fund is classified as non-diversified. As such, the
percentage of the Fund’s assets invested in any single issuer or a few issuers
is not limited as much as it is for a Fund classified as diversified. Investing
a higher percentage of its assets in any one or a few issuers could increase the
Fund’s risk of loss and its share price volatility, because the value of its
shares would be more susceptible to adverse events affecting those
issuers.
Preferred Securities
Risk. Preferred securities, which are a form of hybrid security (i.e., a
security with both debt and equity characteristics), may pay fixed or adjustable
rates of return. Preferred securities are subject to issuer-specific and market
risks applicable generally to equity securities, however, unlike common stocks,
participation in the growth of an issuer may be limited. Distributions on
preferred securities are generally payable at the discretion of the issuer’s
board of directors and after the company makes required payments to holders of
its debt securities. For this reason, preferred securities are subject to
greater credit, interest, and liquidation risk than debt securities, and the
value of preferred securities will usually react more strongly than debt
securities to actual or perceived changes in the company’s financial condition
or prospects. Preferred securities of smaller companies may be more vulnerable
to adverse developments than preferred securities of larger companies. Preferred
securities may be less liquid than common stocks.
Recent Market
Conditions. Both U.S. and international markets have experienced significant
volatility in recent months and years. As a result of such volatility,
investment returns may fluctuate significantly. National economies are
substantially interconnected, as are global financial markets, which creates the
possibility that conditions in one country or region might adversely impact
issuers in a different country or region. However, the interconnectedness of
economies and/or markets may be diminishing, which may impact such economies and
markets in ways that cannot be foreseen at this time.
Although interest rates were
unusually low in recent years in the U.S. and abroad, recently, the Federal
Reserve and certain foreign central banks raised interest rates as part of their
efforts to address rising inflation. It is difficult to accurately predict the
pace at which interest rates might increase, the timing, frequency or magnitude
of any such increases in interest rates, or when such increases might stop.
Additionally, various economic and political factors could cause the Federal
Reserve or other foreign central banks to change their approach in the future
and such actions may result in an economic slowdown both in the U.S. and abroad.
Unexpected changes in interest rates could lead to market volatility or reduce
liquidity in certain sectors of the market. Deteriorating economic fundamentals
may, in turn, increase the risk of default or insolvency of particular issuers,
negatively impact market value, cause credit spreads to widen, and reduce bank
balance sheets. Any of these could cause an increase in market volatility, or
reduce liquidity across various markets or decrease confidence in the
markets.
Some countries, including the
U.S., have adopted more protectionist trade policies. Slowing global economic
growth, the rise in protectionist trade policies, changes to some major
international trade agreements, risks associated with the trade agreement
between the United Kingdom and the European Union, and the risks associated with
trade negotiations between the U.S. and China, could affect the economies of
many nations in ways that cannot necessarily be foreseen at the present time. In
addition, the current strength of the U.S. dollar may decrease foreign demand
for U.S. assets, which could have a negative impact on certain issuers and/or
industries.
Regulators in the U.S. have
proposed and adopted a number of changes to regulations involving the markets
and issuers, some of which apply to the Fund. The full effect of various newly
adopted regulations is not currently known. Additionally, it is not currently
known whether any of the proposed regulations will be adopted. However, due to
the scope of regulations being proposed and adopted, certain of these changes to
regulation could limit the Fund’s ability to pursue its investment strategies or
make certain investments, may make it more costly for it to operate, or
adversely impact performance.
Tensions, war, or open
conflict between nations, such as between Russia and Ukraine, in the Middle
East, or in eastern Asia could affect the economies of many nations, including
the United States. The duration of ongoing hostilities and any sanctions and
related events cannot be predicted. Those events present material uncertainty
and risk with respect to markets globally and the performance of the Fund and
its investments or operations could be negatively impacted.
High public debt in the U.S.
and other countries creates ongoing systemic and market risks and policymaking
uncertainty. There is no assurance that the U.S. Congress will act to raise the
nation’s debt ceiling; a failure to do so could cause market turmoil and
substantial investment risks that cannot now be fully predicted. Unexpected
political, regulatory and diplomatic events within the U.S. and abroad may
affect investor and consumer confidence and may adversely impact financial
markets and the broader economy.
There is widespread concern
about the potential effects of global climate change on property and security
values. Certain issuers, industries and regions may be adversely affected by the
impact of climate change in ways that cannot be foreseen. The impact of
legislation, regulation and international accords related to climate change may
negatively impact certain issuers and/or industries.
Redemption Risk. The
Fund may experience periods of large or frequent redemptions that could cause
the Fund to sell assets at inopportune times, which could have a negative impact
on the Fund’s overall liquidity, or at a loss or depressed value. Redemption
risk is greater to the extent that one or more investors or intermediaries
control a large percentage of investments in the Fund and the risk is heightened
during periods of declining or illiquid markets. Large redemptions could hurt
the Fund’s performance, increase transaction costs, and create adverse tax
consequences.
REITs and Other Real
Estate Companies Risk. REITs and other real estate company securities are
subject to risks similar to those of direct investments in real estate and the
real estate industry in general, including, among other risks: general and local
economic conditions; changes in interest rates; declines in property values;
defaults by mortgagors or other borrowers and tenants; increases in property
taxes and other operating expenses; overbuilding in their sector of the real
estate market; fluctuations in rental income; lack of availability of mortgage
funds or financing; extended vacancies of properties, especially during economic
downturns; changes in tax and regulatory requirements; losses due to
environmental liabilities; casualty or condemnation losses;
changing social trends
regarding working arrangements; or other economic, social, political, or
regulatory matters affecting the real estate industry. REITs also are dependent
upon the skills of their managers and are subject to heavy cash flow dependency
or self-liquidation.
Regardless of where a REIT is
organized or traded, its performance may be affected significantly by events in
the region where its properties are located. Domestic REITs could be adversely
affected by failure to qualify for tax-free “pass-through” of distributed net
investment income and net realized gains under the Internal Revenue Code of
1986, as amended, (“Code”) or to maintain their exemption from registration
under the Investment Company Act of 1940, as amended. The value of REIT common
shares may decline when interest rates rise. REITs and other real estate company
securities tend to be small- to mid-cap securities and are subject to the risks
of investing in small- to mid-cap securities.
Sector Risk. Although
the Fund will not invest in real estate directly, because it concentrates its
assets in the real estate industry your investment in the Fund will be closely
linked to the performance of the real estate markets and the value of the Fund’s
shares may change at different rates compared to the value of shares of a fund
with investments in a mix of different sectors or industries.
The Fund may at times
emphasize particular sub-sectors of the real estate business — for example,
apartments, regional malls, offices, infrastructure, industrial, and health
care. As such, the Fund’s performance would be especially sensitive to
developments that significantly affect those businesses.
Individual sectors or
sub-sectors may be more volatile, and may perform differently, than the broader
market. The industries that constitute a sector may all react in the same way to
economic, political or regulatory events.
A summary of the Fund’s
additional principal investment risks is as follows:
Risk of Increase in
Expenses. A decline in the Fund’s average net assets during the current
fiscal year due to market volatility or other factors could cause the Fund’s
expenses for the current fiscal year to be higher than the expense information
presented in “Fees and Expenses.”
Operational and
Cybersecurity Risk. The Fund and its service providers, and your ability to
transact with the Fund, may be negatively impacted due to operational matters
arising from, among other problems, human errors, systems and technology
disruptions or failures, or cybersecurity incidents. Cybersecurity incidents may
allow an unauthorized party to gain access to fund assets, customer data, or
proprietary information, or cause the Fund or its service providers, as well as
the securities trading venues and their service providers, to suffer data
corruption or lose operational functionality. Cybersecurity incidents can result
from deliberate attacks or unintentional events. It is not possible for the
Manager or the other Fund service providers to identify all of the cybersecurity
or other operational risks that may affect the Fund or to develop processes and
controls to completely eliminate or mitigate their occurrence or effects. Most
issuers in which the Fund invests are heavily dependent on computers for data
storage and operations, and require ready access to the internet to conduct
their business. Thus, cybersecurity incidents could also affect issuers of
securities in which the Fund invests, leading to significant loss of
value.
Risk Management. Risk
is an essential part of investing. No risk management program can eliminate the
Fund’s exposure to adverse events; at best, it may only reduce the possibility
that the Fund will be affected by such events, and especially those risks that
are not intrinsic to the Fund’s investment program. The Fund could experience
losses if judgments about risk prove to be incorrect.
Valuation Risk. The
Fund may not be able to sell an investment at the price at which the Fund has
valued the investment. Such differences could be significant, particularly for
illiquid securities and securities that trade in relatively thin markets and/or
markets that experience extreme volatility. If market or other conditions make
it difficult to value an investment, the Fund may be required to value such
investments using more subjective methods, known as fair value methodologies.
Using fair value methodologies to price investments may result in a value that
is different from an investment’s most recent price and from the prices used by
other funds to calculate their NAVs. The Fund uses pricing services to provide
values for certain securities and there is no assurance that the Fund will be
able to sell an investment at the price established by such pricing services.
The Fund’s ability to value its investments in an accurate and timely manner may
be impacted by technological issues and/or errors by third party service
providers, such as pricing services or accounting agents.
PERFORMANCE
The following bar chart and
table provide an indication of the risks of investing in the Fund. The bar chart
shows how the Fund’s performance has varied from year to year. The table below
the bar chart shows what the returns would equal if you averaged out actual
performance over various lengths of time and compares the returns with the
returns of a broad-based market index. The index, which
is described in “Descriptions of Indices” in the prospectus, has characteristics
relevant to the Fund’s investment strategy.
As of June 19, 2012, the
Fund changed its investment policy to become “non-diversified” under the
Investment Company Act of 1940. Its performance prior to this change might have
been different if current policies had been in effect.
The following
performance prior to March 15, 2013, is that of the Fund’s Trust Class.
Because Trust Class has higher expenses than Class R6, its performance typically
would have been lower than that of Class R6.
Returns would have been lower
if the Manager had not reimbursed certain expenses and/or waived a portion of
the investment management fees during certain of the periods shown.
Past performance (before and
after taxes) is not a prediction of future results. Visit
www.nb.com
or call 800-366-6264 for
updated performance information.
year-by-year % Returns as of 12/31 each
year
Years |
Returns |
2013 |
1.02% |
2014 |
24.25% |
2015 |
3.39% |
2016 |
4.35% |
2017 |
11.92% |
2018 |
-4.95% |
2019 |
32.08% |
2020 |
-1.04% |
2021 |
42.10% |
2022 |
-26.98% |
Best
quarter: Q1 2019 17.32%
Worst
quarter: Q1 2020 -17.56%
Year to Date performance as
of: 9/30/2023 -5.60%
average annual total % returns as of
12/31/22
Real Estate
Fund |
|
1
Year |
|
5
Years |
|
10
Years |
Return
Before Taxes |
|
-26.98 |
|
5.21 |
|
6.93 |
Return
After Taxes on Distributions |
|
-29.17 |
|
3.36 |
|
4.68 |
Return
After Taxes on Distributions and Sale of Fund Shares |
|
-14.74 |
|
3.69 |
|
4.89 |
FTSE
Nareit All Equity REITs Index (reflects no deduction for
fees, expenses or taxes) |
|
-24.95 |
|
4.43 |
|
7.10 |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local
taxes. Actual after-tax returns depend on an investor’s
tax situation and may differ from those shown. After-tax returns are not
relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. Return After Taxes on
Distributions and Sale of Fund Shares may be higher than other returns for the
same period due to a tax benefit of realizing a capital loss upon the sale of
Fund shares.
INVESTMENT
MANAGER
Neuberger Berman Investment
Advisers LLC (“Manager”) is the Fund’s investment manager.
PORTFOLIO
MANAGERS
The Fund is co-managed by
Steve Shigekawa (Managing Director of the Manager) and Brian C. Jones, CFA
(Managing Director of the Manager). They have been co-Portfolio Managers of the
Fund since 2008. Mr. Shigekawa was an Associate Portfolio Manager of the Fund
from 2005 to 2008.
Buying
and Selling Shares
You may purchase, redeem
(sell) or exchange shares of the Fund on any day the New York Stock Exchange is
open, at the Fund’s net asset value per share next determined after your order
is received in proper form. Shares of the Fund generally are available only
through certain investment providers, such as banks, brokerage firms, retirement
plan administrators, and financial advisers. Contact any investment provider
authorized to sell the Fund’s shares. See “Maintaining Your Account” in the
prospectus for eligibility requirements for purchases of Class R6
shares.
For certain institutional
investors, shares of the Fund may be available directly from Neuberger Berman BD
LLC by regular, first class mail (Neuberger Berman Funds, P.O. Box 219189,
Kansas City, MO 64121-9189), by express delivery, registered mail, or certified
mail (Neuberger Berman Funds, 430 West 7th Street, Suite 219189,
Kansas City, MO 64105-1407), or by wire, fax, telephone, or exchange (call
800-366-6264 for instructions). See “Maintaining Your Account” in the prospectus
for eligibility requirements for direct purchases of shares and for instructions
on buying and redeeming (selling) shares directly.
The Fund does not impose
minimum purchase requirements for Class R6 shares. However, you should contact
your investment provider to determine whether it imposes minimum purchase
requirements.
Tax
Information
Unless you invest in the Fund
through a tax-advantaged retirement plan or account or are a tax-exempt
investor, you will be subject to tax on Fund distributions to you of ordinary
income and/or net capital gains. Those distributions generally are not taxable
to such a plan or account or a tax-exempt investor, although withdrawals from
certain retirement plans and accounts generally are subject to federal income
tax.
Payments
to Investment Providers and Other Financial Intermediaries
If you purchase shares of
another class of the Fund through an investment provider or other financial
intermediary, such as a bank, brokerage firm, workplace retirement program, or
financial adviser (who may be affiliated with Neuberger Berman), the Fund and/or
Neuberger Berman BD LLC and/or its affiliates may pay the intermediary for the
sale of shares of those other classes of the Fund and related services. These
payments may create a conflict of interest by influencing the investment
provider or other financial intermediary and its employees to recommend the Fund
or those other classes of the Fund over another investment. Neuberger Berman
does not provide ongoing payments to third parties for any record-keeping or
administrative services in connection with investments in Class R6. To the
extent the Fund makes such payments with respect to another class, they can come
only out of the assets of that other class.
Neuberger Berman Small Cap Growth Fund
Class R6 Shares
(NSRSX)
GOAL
The Fund seeks growth of
capital.
Fees and
Expenses
These tables describe the
fees and expenses that you may pay if you buy, hold or sell shares of the Fund.
You may pay other fees, such as brokerage commissions and other fees to
financial intermediaries, which are not reflected in the table and example
below.
Shareholder Fees (fees paid
directly from your investment) |
|
None |
Annual Fund Operating Expenses
(expenses that you pay each year as a % of the value of your
investment) |
|
|
Management
fees |
|
0.89 |
Distribution
and/or shareholder service (12b-1) fees |
|
None |
Other
expenses |
|
0.15 |
Total
annual operating expenses |
|
1.04 |
Fee
waivers and/or expense reimbursement |
|
0.23 |
Total
annual operating expenses after fee waivers and/or expense
reimbursement1 |
|
0.81 |
Expense
Example
The expense example can help
you compare costs among mutual funds. The example assumes that you invested
$10,000 for the periods shown, that you redeemed all of your shares at the end
of those periods, that the Fund earned a hypothetical 5% total return each year,
and that the Fund’s expenses were those in the table. Actual performance and
expenses may be higher or lower.
|
|
1
Year |
|
3
Years |
|
5
Years |
|
10
Years |
Class
R6 |
|
$83 |
|
$259 |
|
$503 |
|
$1,205 |
Portfolio
Turnover
The Fund pays transaction
costs, such as commissions, when it buys and sells securities (or “turns over”
its portfolio). A higher portfolio turnover rate may indicate higher transaction
costs and may result in higher taxes when Fund shares are held in a taxable
account. These costs, which are not reflected in annual operating expenses or in
the example, affect the Fund’s performance. During the most recent fiscal year,
the Fund’s portfolio turnover rate was 129% of the
average value of its portfolio.
Principal Investment
Strategies
To pursue
its goal, the Fund normally invests at least 80% of its net assets in common
stocks of small-capitalization companies, which it defines as those with a
market capitalization within the market capitalization range of the Russell
2000® Index at the time of initial purchase. Although the Fund
invests primarily in domestic securities, it may also invest in securities of
foreign companies.
The Fund’s
strategy utilizes a qualitative, bottom-up research driven approach to identify
companies that the Portfolio Managers believe have catalysts for growth which
are underappreciated by the market. The Portfolio Managers seek to invest in
underappreciated companies with the following characteristics: durable and
potentially unique business models and/or proficient management capable of
advancing the development of and/or strengthening of sustainable and consistent
revenue growth, cash flow growth, earnings growth and/or overall balance sheet
strength. Such catalysts may include a new technology, product or service, a
regulatory update, market share gains, cyclical inflections (e.g. companies
whose returns are driven by macro-economic factors), corporate restructurings or
self-help initiatives (e.g. internal operating efforts to increase company
efficiencies). The Portfolio Managers may also invest in anticipation of a
catalyst.
In analyzing
catalysts, the Portfolio Managers evaluate each catalyst’s uniqueness, timing,
growth potential and sustainability, as well as assessing execution risks,
competitive barriers and threats. The Portfolio Managers are also attempting to
exploit market inefficiencies that potentially may exist within the
small-capitalization market, due to the number of companies that comprise the
investable universe and the limited amount of available research that exists for
some of those companies. Investable companies emerging from the Portfolio
Manager’s bottom-up fundamental, qualitative and valuation analysis fall into
the following investment classifications:
Core
investments: are typically more mature companies, engaged with, and
participating in, compelling secular growth trends, that the Portfolio Managers
believe offer a demonstrated history of consistent execution and results. These
tend to represent multi-year holdings of the strategy.
Turn
investments: represent holdings in a wide range of corporate development and
maturity stages and are generally driven by what the Portfolio Managers believe
to be a distinct developing catalyst, such as a new product or service, market
share gains or internal corporate self-help opportunities to improve operating
efficiencies.
Tactical
investments: represent holdings with a shorter-term investment horizon due
to catalysts the Portfolio Managers believe are typically associated with
cyclical trends and opportunities, a disconnect with market expectations
providing an opportunity on valuation or a new product, or financial or
regulatory developments that could have a material impact on the
company.
Tactical
investments have the potential to grow into Turn investments, while compelling
Turn investments will ideally develop into Core investments.
The Fund
seeks to reduce risk by diversifying among many companies, sectors and
industries. At times, the Portfolio Managers may emphasize certain sectors that
they believe will benefit from market or economic trends.
The
Portfolio Managers constantly monitor their holdings and are focused on
maintaining what they believe is an appropriate and attractive risk/reward
balance with a disciplined sell process that acts quickly and dispassionately to
address both positive and negative outcomes. A position is typically trimmed or
exited for the following reasons: to harvest gains from significant short-term
price appreciation, the positive realization of a catalyst, the achievement of a
price target or elevated valuations, identification of a better idea, to
minimize potential risks, to address an absence of near-term drivers or
catalysts, a significant deterioration of fundamentals, a change in management
or operating strategy or the failure of a catalyst to develop.
In an effort
to achieve its goal, the Fund may engage in active and frequent trading that
involves initiating new positions, resizing current positions in response to
material developments and in order to maintain an appropriate and attractive
risk/reward balance and fully exiting positions in favor of new
ideas.
The Fund
will not change its strategy of normally investing at least 80% of its net
assets in small-capitalization companies, without providing shareholders at
least 60 days’ notice. This test is applied at the time the Fund invests; later
percentage changes caused by a change in Fund assets, market values or company
circumstances will not require the Fund to dispose of a
holding.
PRINCIPAL INVESTMENT
RISKS
Most of the Fund’s
performance depends on what happens in the stock market, the Portfolio Managers’
evaluation of those developments, and the success of the Portfolio Managers in
implementing the Fund’s investment strategies. The market’s behavior can be
difficult to predict, particularly in the short term. There can be no guarantee
that the Fund will achieve its goal. The Fund may take temporary defensive and
cash management positions; to the extent it does, it will not be pursuing its
principal investment strategies.
The actual risk exposure
taken by the Fund in its investment program will vary over time, depending on
various factors including the Portfolio Managers’ evaluation of issuer,
political, regulatory, market, or economic developments. There can be no
guarantee that the Portfolio Managers will be successful in their attempts to
manage the risk exposure of the Fund or will appropriately evaluate or weigh the
multiple factors involved in investment decisions, including issuer, market
and/or instrument-specific analysis and valuation.
The Fund is a mutual fund, not a bank deposit, and is not
guaranteed or insured by the Federal Deposit Insurance Corporation or any other
government agency. The value of your investment may fall, sometimes sharply,
and you could lose money by investing in the
Fund.
Each of the following risks,
which are described in alphabetical order and not in order of any presumed
importance, can significantly affect the Fund’s performance. The relative
importance of, or potential exposure as a result of, each of these risks will
vary based on market and other investment-specific considerations.
Catalyst Risk.
Investing in companies in anticipation of a catalyst carries the risk that the
catalyst may not happen as anticipated, or the market may react to the catalyst
differently than expected. Certain catalysts, such as emergence from, or
restructuring as a result of, bankruptcy, carry additional risks and the
securities of such companies may be more likely to lose value than the
securities of more stable companies. Securities of issuers undergoing such an
event may be more volatile than other securities, may at times be illiquid, and
may be difficult to value, and management of such a company may be addressing a
situation with which it has little experience.
Foreign
Risk. Foreign securities involve risks in addition to those associated with
comparable U.S. securities. Additional risks include exposure to less developed
or less efficient trading markets; social, political, diplomatic, or economic
instability; trade barriers and other protectionist trade policies (including
those of the U.S.); imposition of economic sanctions against a particular
country or countries, organizations, companies, entities and/or individuals;
significant government involvement in an economy and/or market structure;
fluctuations in foreign currencies or currency redenomination; potential for
default on sovereign debt; nationalization or expropriation of assets;
settlement, custodial or other operational risks; higher transaction costs;
confiscatory withholding or other taxes; and less stringent auditing and
accounting, corporate disclosure, governance, and legal standards. As a result,
foreign securities may fluctuate more widely in price, and may also be less
liquid, than comparable U.S. securities. World markets, or those in a particular
region, may all react in similar fashion to important economic or political
developments. In addition, foreign markets may perform differently than the U.S.
markets. The effect of economic instability on specific foreign markets or
issuers may be difficult to predict or evaluate. Regardless of where a company
is organized or its stock is traded, its performance may be affected
significantly by events in regions from which it derives its profits or in which
it conducts significant operations.
Securities
of issuers traded on foreign exchanges may be suspended, either by the issuers
themselves, by an exchange, or by governmental authorities. Trading suspensions
may be applied from time to time to the securities of individual issuers for
reasons specific to that issuer, or may be applied broadly by exchanges or
governmental authorities in response to market events. In the event that the
Fund holds material positions in such suspended securities or instruments, the
Fund’s ability to liquidate its positions or provide liquidity to investors may
be compromised and the Fund could incur significant losses.
Foreign
Exposure Risk. Securities issued by U.S. entities with substantial foreign
operations or holdings, or issued by foreign entities listed on a U.S. exchange,
may involve additional risks relating to political, economic, or regulatory
conditions in foreign countries, as well as currency exchange rates.
Growth Stock Risk.
Because the prices of most growth stocks are based on future expectations, these
stocks tend to be more sensitive than value stocks to bad economic news and
negative earnings surprises. When these expectations are not met or decrease,
the prices of these stocks may decline, sometimes sharply, even if earnings
showed an absolute increase. Bad economic news or changing investor perceptions
may adversely affect growth stocks across several sectors and industries
simultaneously.
High Portfolio Turnover
Risk. The Fund may engage in active and frequent trading and may have a high
portfolio turnover rate, which may increase the Fund’s transaction costs, may
adversely affect the Fund’s performance and may generate a greater amount of
capital gain distributions to shareholders than if the Fund had a low portfolio
turnover rate.
Issuer-Specific Risk.
An individual security may be more volatile, and may perform differently, than
the market as a whole.
Market Volatility
Risk. Markets may be volatile and values of individual securities and other
investments, including those of a particular type, may decline significantly in
response to adverse issuer, political, regulatory, market, economic or other
developments that may cause broad changes in market value, public perceptions
concerning these developments, and adverse investor sentiment or publicity.
Geopolitical and other risks, including environmental and public health risks
may add to instability in world economies and markets generally. Changes in
value may be temporary or may last for extended periods. If the Fund sells a
portfolio position before it reaches its market peak, it may miss out on
opportunities for better performance.
Recent Market
Conditions. Both U.S. and international markets have experienced significant
volatility in recent months and years. As a result of such volatility,
investment returns may fluctuate significantly. National economies are
substantially interconnected, as are global financial markets, which creates the
possibility that conditions in one country or region might adversely impact
issuers in a different country or region. However, the interconnectedness of
economies and/or markets may be diminishing, which may impact such economies and
markets in ways that cannot be foreseen at this time.
Although interest rates were
unusually low in recent years in the U.S. and abroad, recently, the Federal
Reserve and certain foreign central banks raised interest rates as part of their
efforts to address rising inflation. It is difficult to accurately predict the
pace at which interest rates might increase, the timing, frequency or magnitude
of any such increases in interest rates, or when such increases might stop.
Additionally, various economic and political factors could cause the Federal
Reserve or other foreign central banks to change their approach in the future
and such actions may result in an economic slowdown both in the U.S. and abroad.
Unexpected changes in interest rates could lead to market volatility or reduce
liquidity in certain sectors of the market. Deteriorating economic fundamentals
may, in turn, increase the risk of default or insolvency of particular issuers,
negatively impact market value, cause credit spreads to widen, and reduce bank
balance sheets. Any of these could cause an increase in market volatility, or
reduce liquidity across various markets or decrease confidence in the
markets.
Some countries, including the
U.S., have adopted more protectionist trade policies. Slowing global economic
growth, the rise in protectionist trade policies, changes to some major
international trade agreements, risks associated with the trade agreement
between the United Kingdom and the European Union, and the risks associated with
trade negotiations between the U.S. and China, could affect the economies of
many nations in ways that cannot necessarily be foreseen at the present time. In
addition, the current strength of the U.S. dollar may decrease foreign demand
for U.S. assets, which could have a negative impact on certain issuers and/or
industries.
Regulators in the U.S. have
proposed and adopted a number of changes to regulations involving the markets
and issuers, some of which apply to the Fund. The full effect of various newly
adopted regulations is not currently known. Additionally, it is not currently
known whether any of the proposed regulations will be adopted. However, due to
the scope of regulations being proposed and adopted, certain of these changes to
regulation could limit the Fund’s ability to pursue its investment strategies or
make certain investments, may make it more costly for it to operate, or
adversely impact performance.
Tensions, war, or open
conflict between nations, such as between Russia and Ukraine, in the Middle
East, or in eastern Asia could affect the economies of many nations, including
the United States. The duration of ongoing hostilities and any sanctions and
related events cannot be predicted. Those events present material uncertainty
and risk with respect to markets globally and the performance of the Fund and
its investments or operations could be negatively impacted.
High public debt in the U.S.
and other countries creates ongoing systemic and market risks and policymaking
uncertainty. There is no assurance that the U.S. Congress will act to raise the
nation’s debt ceiling; a failure to do so could cause market turmoil and
substantial investment risks that cannot now be fully predicted. Unexpected
political, regulatory and diplomatic events within the U.S. and abroad may
affect investor and consumer confidence and may adversely impact financial
markets and the broader economy.
There is widespread concern
about the potential effects of global climate change on property and security
values. Certain issuers, industries and regions may be adversely affected by the
impact of climate change in ways that cannot be foreseen. The impact of
legislation, regulation and international accords related to climate change may
negatively impact certain issuers and/or industries.
Redemption Risk. The
Fund may experience periods of large or frequent redemptions that could cause
the Fund to sell assets at inopportune times, which could have a negative impact
on the Fund’s overall liquidity, or at a loss or depressed value. Redemption
risk is greater to the extent that one or more investors or intermediaries
control a large percentage of investments in the Fund and the risk is heightened
during periods of declining or illiquid markets. Large redemptions could hurt
the Fund’s performance, increase transaction costs, and create adverse tax
consequences.
Sector Risk. From time
to time, based on market or economic conditions, the Fund may have significant
positions in one or more sectors of the market. To the extent the Fund invests
more heavily in particular sectors, its performance will be especially sensitive
to developments that significantly affect those sectors. Individual sectors or
sub-sectors may be more volatile, and may perform differently, than the broader
market. The industries that constitute a sector may all react in the same way to
economic, political or regulatory events.
Securities Lending
Risk. Securities lending involves a possible delay in recovery of the loaned
securities or a possible loss of rights in the collateral should the borrower
fail financially. The Fund could also lose money if the value of the collateral
decreases.
Small- and Mid-Cap
Companies Risk. At times, small- and mid-cap companies may be out of favor
with investors. Compared to larger companies, small- and mid-cap companies may
depend on a more limited management group, may have a shorter history of
operations, less publicly available information, less stable earnings, and
limited product lines, markets or financial resources. The securities of small-
and mid-cap companies are often more volatile, which at times can be rapid and
unpredictable, and less liquid than the securities of larger companies and may
be more affected than other types of securities by the underperformance of a
sector, during market downturns, or by adverse publicity and investor
perceptions. To the extent the Fund holds securities of mid-cap companies, the
Fund will be subject to their risks.
A summary of the Fund’s
additional principal investment risks is as follows:
Risk of Increase in
Expenses. A decline in the Fund’s average net assets during the current
fiscal year due to market volatility or other factors could cause the Fund’s
expenses for the current fiscal year to be higher than the expense information
presented in “Fees and Expenses.”
Operational and
Cybersecurity Risk. The Fund and its service providers, and your ability to
transact with the Fund, may be negatively impacted due to operational matters
arising from, among other problems, human errors, systems and technology
disruptions or failures, or cybersecurity incidents. Cybersecurity incidents may
allow an unauthorized party to gain access to fund assets, customer data, or
proprietary information, or cause the Fund or its service providers, as well as
the securities trading venues and their service providers, to suffer data
corruption or lose operational functionality. Cybersecurity incidents can result
from deliberate attacks or unintentional events. It is not possible for the
Manager or the other Fund service providers to identify all of the cybersecurity
or other operational risks that may affect the Fund or to develop processes and
controls to completely eliminate or mitigate their occurrence or effects. Most
issuers in which the Fund invests are heavily dependent on computers for data
storage and operations, and require ready access to the internet to conduct
their business. Thus, cybersecurity incidents could also affect issuers of
securities in which the Fund invests, leading to significant loss of
value.
Risk Management. Risk
is an essential part of investing. No risk management program can eliminate the
Fund’s exposure to adverse events; at best, it may only reduce the possibility
that the Fund will be affected by such events, and especially those risks that
are not intrinsic to the Fund’s investment program. The Fund could experience
losses if judgments about risk prove to be incorrect.
Valuation Risk. The
Fund may not be able to sell an investment at the price at which the Fund has
valued the investment. Such differences could be significant, particularly for
illiquid securities and securities that trade in relatively thin markets and/or
markets that experience extreme volatility. If market or other conditions make
it difficult to value an investment, the Fund may be required to value such
investments using more subjective methods, known as fair value methodologies.
Using fair value methodologies to price investments may result in a value that
is different from an investment’s most recent price and from the prices used by
other funds to calculate their NAVs. The Fund uses pricing services to provide
values for certain securities and there is no assurance that the Fund will be
able to sell an investment at the price established by such pricing services.
The Fund’s ability to value its investments in an accurate and timely manner may
be impacted by technological issues and/or errors by third party service
providers, such as pricing services or accounting
agents.
PERFORMANCE
The following bar chart and
table provide an indication of the risks of investing in the Fund. The bar chart
shows how the Fund’s performance has varied from year to year. The table below the bar chart shows
what the returns would equal if you averaged out actual performance over various
lengths of time and compares the returns with the returns of one or more
broad-based market indices. The
indices, which are described in “Descriptions of Indices” in the prospectus,
have characteristics relevant to the Fund’s investment strategy.
The following
performance prior to September 7, 2018 is that of the Fund’s Investor
Class. Because Investor Class has higher expenses than Class R6, its performance
typically would have been lower than that of Class
R6.
Returns would have been lower
if the Manager had not reimbursed certain expenses and/or waived a portion of
the investment management fees during certain of the periods shown.
Past performance (before and
after taxes) is not a prediction of future results. Visit
www.nb.com
or call 800-366-6264 for
updated performance information.
year-by-year % Returns as of 12/31 each
year
Years |
Returns |
2013 |
47.14% |
2014 |
3.89% |
2015 |
-5.61% |
2016 |
6.15% |
2017 |
28.13% |
2018 |
5.69% |
2019 |
35.05% |
2020 |
43.33% |
2021 |
4.64% |
2022 |
-24.25% |
Best
quarter: 2020-06-30Q2 2020 30.43%
Worst
quarter: 2020-03-31Q1 2020 -20.53%
Year to Date performance as
of: 9/30/2023 -0.03%
average annual total % returns as of
12/31/22
Small Cap Growth
Fund |
|
1
Year |
|
5
Years |
|
10
Years |
Return
Before Taxes |
|
-24.25 |
|
10.15 |
|
12.27 |
Return
After Taxes on Distributions |
|
-24.25 |
|
7.09 |
|
10.45 |
Return
After Taxes on Distributions and Sale of Fund Shares |
|
-14.35 |
|
7.01 |
|
9.56 |
Russell
2000® Growth Index (reflects no deduction for
fees, expenses or taxes) |
|
-26.36 |
|
3.51 |
|
9.20 |
Russell
2000® Index (reflects no deduction for
fees, expenses or taxes) |
|
-20.44 |
|
4.13 |
|
9.01 |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local
taxes. Actual after-tax returns depend on an investor’s
tax situation and may differ from those shown. After-tax returns are not
relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. Return After Taxes on
Distributions and Sale of Fund Shares may be higher than other returns for the
same period due to a tax benefit of realizing a capital loss upon the sale of
Fund shares.
INVESTMENT
MANAGER
Neuberger Berman Investment
Advisers LLC (“Manager”) is the Fund’s investment manager.
PORTFOLIO
MANAGERS
The Fund is co-managed by
Portfolio Managers Chad Bruso (Managing Director of the Manager), Trevor Moreno
(Managing Director of the Manager) and Associate Portfolio Manager Jennifer
Blachford (Senior Vice President of the Manager). Messrs. Bruso and Moreno have
managed the Fund since November 2015. Messrs. Bruso and Moreno joined as
Associate Portfolio Managers in November 2015 and became co-Portfolio
Managers in January 2020. Ms. Blachford has managed the Fund since
December 2021.
Buying
and Selling Shares
You may purchase, redeem
(sell) or exchange shares of the Fund on any day the New York Stock Exchange is
open, at the Fund’s net asset value per share next determined after your order
is received in proper form. Shares of the Fund generally are available only
through certain investment providers, such as banks, brokerage firms, retirement
plan administrators, and financial advisers. Contact any investment provider
authorized to sell the Fund’s shares. See “Maintaining Your Account” in the
prospectus for eligibility requirements for purchases of Class R6
shares.
For certain institutional
investors, shares of the Fund may be available directly from Neuberger Berman BD
LLC by regular, first class mail (Neuberger Berman Funds, P.O. Box 219189,
Kansas City, MO 64121-9189), by express delivery, registered mail, or certified
mail (Neuberger Berman Funds, 430 West 7th Street, Suite 219189,
Kansas City, MO 64105-1407), or by wire, fax, telephone, or exchange (call
800-366-6264 for instructions). See “Maintaining Your Account” in the prospectus
for eligibility requirements for direct purchases of shares and for instructions
on buying and redeeming (selling) shares directly.
The Fund does not impose
minimum purchase requirements for Class R6 shares. However, you should contact
your investment provider to determine whether it imposes minimum purchase
requirements.
Tax
Information
Unless you invest in the Fund
through a tax-advantaged retirement plan or account or are a tax-exempt
investor, you will be subject to tax on Fund distributions to you of ordinary
income and/or net capital gains. Those distributions generally are not taxable
to such a plan or account or a tax-exempt investor, although withdrawals from
certain retirement plans and accounts generally are subject to federal income
tax.
Payments
to Investment Providers and Other Financial Intermediaries
If you purchase shares of
another class of the Fund through an investment provider or other financial
intermediary, such as a bank, brokerage firm, workplace retirement program, or
financial adviser (who may be affiliated with Neuberger Berman), the Fund and/or
Neuberger Berman BD LLC and/or its affiliates may pay the intermediary for the
sale of shares of those other classes of the Fund and related services. These
payments may create a conflict of interest by influencing the investment
provider or other financial intermediary and its employees to recommend the Fund
or those other classes of the Fund over another investment. Neuberger Berman
does not provide ongoing payments to third parties for any record-keeping or
administrative services in connection with investments in Class R6. To the
extent the Fund makes such payments with respect to another class, they can come
only out of the assets of that other class.
Neuberger
Berman Sustainable Equity Fund
Class R6 Shares
(NRSRX)
GOAL
The Fund seeks long-term
growth of capital by investing primarily in securities of companies that meet
the Fund’s environmental, social and governance (ESG)
criteria.
Fees and
Expenses
These tables describe the
fees and expenses that you may pay if you buy, hold or sell shares of the Fund.
You may pay other fees, such as brokerage commissions and other fees to
financial intermediaries, which are not reflected in the table and example
below.
Shareholder Fees (fees paid
directly from your investment) |
|
None |
Annual Fund Operating Expenses
(expenses that you pay each year as a % of the value of your
investment) |
|
|
Management
fees |
|
0.55 |
Distribution
and/or shareholder service (12b-1) fees |
|
None |
Other
expenses |
|
0.05 |
Total
annual operating expenses |
|
0.60 |
Expense
Example
The expense example can help
you compare costs among mutual funds. The example assumes that you invested
$10,000 for the periods shown, that you redeemed all of your shares at the end
of those periods, that the Fund earned a hypothetical 5% total return each year,
and that the Fund’s expenses were those in the table. Actual performance and
expenses may be higher or lower.
|
|
1
Year |
|
3
Years |
|
5
Years |
|
10
Years |
Class
R6 |
|
$61 |
|
$192 |
|
$335 |
|
$750 |
Portfolio
Turnover
The Fund pays transaction
costs, such as commissions, when it buys and sells securities (or “turns over”
its portfolio). A higher portfolio turnover rate may indicate higher transaction
costs and may result in higher taxes when Fund shares are held in a taxable
account. These costs, which are not reflected in annual operating expenses or in
the example, affect the Fund’s performance. During the most recent fiscal year,
the Fund’s portfolio turnover rate was 20% of the average
value of its portfolio.
Principal Investment
Strategies
To pursue its goal, the Fund
seeks to invest primarily in common stocks of mid- to large-capitalization
companies that meet the Fund’s quality oriented financial and ESG criteria. The
Fund defines mid-capitalization companies as those with a total market
capitalization of $2 billion and above and large-capitalization companies as
those with a total market capitalization of $10 billion and above, both at the
time of initial purchase.
The Portfolio Manager employs
a fundamental research driven approach to stock selection and portfolio
construction, with a focus on long term sustainability issues that, in the
judgement of the Portfolio Manager, are financially material. This sustainable
investment approach seeks to identify high quality, well-positioned companies
with leadership that is focused on ESG issues relevant to their business. In
doing such, the Portfolio Manager seeks to identify companies with certain
practices, including (i) clear and relevant communication regarding management’s
understanding, commitment to, and prioritization of, sustainability issues
relevant to the business; (ii) identification and disclosure of material
sustainability considerations and management objectives (e.g.,
sustainability-linked goals and targets, including their supply chain, or
executive compensation frameworks linked to such goals and targets); and/or
(iii) board-level oversight on material sustainability issues. As part of the
focus on quality, the Portfolio Manager looks for solid balance sheets, strong
management teams with a track record of success, good cash flow, the prospect
for above-average earnings growth and the sustainability of those earnings, as
well as of the company’s business model, over the long term. The Portfolio
Manager seeks to purchase the stock of businesses that he believes to be well
positioned and attractively valued. Among companies that meet these criteria,
the Portfolio Manager looks for those that show leadership in environmental,
social and governance considerations, including safe and equitable workplace
practices and constructive community relations.
94
Sustainable Equity Fund
As part of the focus on
long-term sustainability, the Portfolio Manager looks for companies that show
leadership in their environmental and workplace practices. The Fund seeks to
invest in companies that demonstrate ESG policies in the following areas: (i)
environmental issues; (ii) employment practices and diversity policies; (iii)
community relations; (iv) supply chain issues; (v) product integrity (e.g.,
safety, quality) and (vi) disclosure and sustainability reporting.
Consistent with the Fund’s
ESG criteria, the Portfolio Manager focuses on identifying companies that are
responsive to environmental issues, including those that have identified and
communicated climate-related risks and opportunities, have identified and
communicated net-zero transition plans, have committed to or are transitioning
to facilitate global decarbonization and/or the reduction of other greenhouse
gas emissions; are agents of favorable change in workplace policies
(particularly for women and minorities); are committed to upholding universal
human rights standards; and are good corporate citizens. The Portfolio Manager
judges companies on their corporate citizenship overall, considering their
accomplishments as well as their goals. While these judgments are inevitably
subjective, the Portfolio Manager endeavors to avoid companies that derive
revenue from gambling or the production of alcohol, tobacco, weapons, nuclear
power or private prisons. Please see the Statement of Additional Information for
a detailed description of the Fund’s ESG criteria.
Although the Fund invests
primarily in domestic stocks, it may also invest in stocks of foreign companies.
The Fund seeks to reduce risk by investing across many different
industries.
The Portfolio Manager follows
a disciplined selling strategy and may sell a security if he believes it is
unattractively valued, if a company’s business fails to perform as expected, or
when other opportunities appear more attractive.
As a sustainable fund, the
Fund is required by the federal securities laws to have a policy, which it
cannot change without providing investors at least 60 days’ written notice, of
investing at least 80% of its net assets in equity securities selected in
accordance with its ESG criteria. The 80% test is applied at the time the Fund
invests; later percentage changes caused by a change in Fund assets, market
values or company circumstances will not require the Fund to dispose of a
holding. In practice, the Portfolio Manager intends to hold only securities
selected in accordance with the Fund’s ESG criteria.
PRINCIPAL INVESTMENT
RISKS
Most of the Fund’s
performance depends on what happens in the stock market, the Portfolio Manager’s
evaluation of those developments, and the success of the Portfolio Manager in
implementing the Fund’s investment strategies. The market’s behavior can be
difficult to predict, particularly in the short term. There can be no guarantee
that the Fund will achieve its goal. The Fund may take temporary defensive and
cash management positions; to the extent it does, it will not be pursuing its
principal investment strategies.
The actual risk exposure
taken by the Fund in its investment program will vary over time, depending on
various factors including the Portfolio Manager’s evaluation of issuer,
political, regulatory, market, or economic developments. There can be no
guarantee that the Portfolio Manager will be successful in his attempts to
manage the risk exposure of the Fund or will appropriately evaluate or weigh the
multiple factors involved in investment decisions, including issuer, market
and/or instrument-specific analysis and valuation.
The Fund is a mutual fund, not a bank deposit, and is not
guaranteed or insured by the Federal Deposit Insurance Corporation or any other
government agency. The value of your investment may fall, sometimes sharply,
and you could lose money by investing in the
Fund.
Each of the following risks,
which are described in alphabetical order and not in order of any presumed
importance, can significantly affect the Fund’s performance. The relative
importance of, or potential exposure as a result of, each of these risks will
vary based on market and other investment-specific considerations.
Currency Risk.
Currency risk is the risk that foreign currencies will decline in value relative
to the U.S. dollar. To the extent that the Fund invests in securities or other
instruments denominated in or indexed to foreign currencies, changes in currency
exchange rates could adversely impact investment gains or add to investment
losses. Currency exchange rates may fluctuate significantly over short periods
of time and can be affected unpredictably by various factors, including investor
perception and changes in interest rates; intervention, or failure to intervene,
by U.S. or foreign governments, central banks, or supranational entities; or by
currency controls or political developments in the U.S. or abroad.
ESG Criteria Risk. The
Fund’s application of ESG criteria is designed and utilized to help identify
companies that demonstrate the potential to create economic value or reduce
risk; however, as with the use of any investment criteria in selecting a
portfolio, there is no guarantee that the criteria used by the Fund will result
in the selection of issuers that will outperform other issuers, or help reduce
risk in the portfolio. Investing based on ESG criteria is qualitative and
subjective by nature and there is no guarantee that the criteria used by the
Fund will reflect the beliefs or values of any particular investor.
95
Sustainable Equity Fund
The use of the Fund’s ESG
criteria could also affect the Fund’s exposure to certain issuers, sectors or
industries, and could impact the Fund’s investment performance depending on
whether the ESG criteria used are ultimately reflected in the market.
Information used to evaluate the Fund’s application of ESG criteria, like other
information used to identify companies in which to invest, may not be readily
available, complete, or accurate, which could negatively impact the Fund’s
performance or create additional risk in the portfolio.
Foreign Risk. Foreign
securities involve risks in addition to those associated with comparable U.S.
securities. Additional risks include exposure to less developed or less
efficient trading markets; social, political, diplomatic, or economic
instability; trade barriers and other protectionist trade policies (including
those of the U.S.); imposition of economic sanctions against a particular
country or countries, organizations, companies, entities and/or individuals;
significant government involvement in an economy and/or market structure;
fluctuations in foreign currencies or currency redenomination; potential for
default on sovereign debt; nationalization or expropriation of assets;
settlement, custodial or other operational risks; higher transaction costs;
confiscatory withholding or other taxes; and less stringent auditing and
accounting, corporate disclosure, governance, and legal standards. As a result,
foreign securities may fluctuate more widely in price, and may also be less
liquid, than comparable U.S. securities. World markets, or those in a particular
region, may all react in similar fashion to important economic or political
developments. In addition, foreign markets may perform differently than the U.S.
markets. The effect of economic instability on specific foreign markets or
issuers may be difficult to predict or evaluate. Regardless of where a company
is organized or its stock is traded, its performance may be affected
significantly by events in regions from which it derives its profits or in which
it conducts significant operations.
Securities of issuers traded
on foreign exchanges may be suspended, either by the issuers themselves, by an
exchange, or by governmental authorities. Trading suspensions may be applied
from time to time to the securities of individual issuers for reasons specific
to that issuer, or may be applied broadly by exchanges or governmental
authorities in response to market events. In the event that the Fund holds
material positions in such suspended securities or instruments, the Fund’s
ability to liquidate its positions or provide liquidity to investors may be
compromised and the Fund could incur significant losses.
Issuer-Specific Risk.
An individual security may be more volatile, and may perform differently, than
the market as a whole.
The Fund’s portfolio may
contain fewer securities than the portfolios of other funds, which increases the
risk that the value of the Fund could go down because of the poor performance of
one or a few investments.
Market Volatility
Risk. Markets may be volatile and values of individual securities and other
investments, including those of a particular type, may decline significantly in
response to adverse issuer, political, regulatory, market, economic or other
developments that may cause broad changes in market value, public perceptions
concerning these developments, and adverse investor sentiment or publicity.
Geopolitical and other risks, including environmental and public health risks
may add to instability in world economies and markets generally. Changes in
value may be temporary or may last for extended periods. If the Fund sells a
portfolio position before it reaches its market peak, it may miss out on
opportunities for better performance.
Mid- and Large-Cap
Companies Risk. At times, mid- and large-cap companies may be out of favor
with investors. Compared to smaller companies, large-cap companies may be unable
to respond as quickly to changes and opportunities and may grow at a slower
rate. Compared to larger companies, mid-cap companies may depend on a more
limited management group, may have a shorter history of operations, less
publicly available information, less stable earnings, and limited product lines,
markets or financial resources. The securities of mid-cap companies are often
more volatile and less liquid than the securities of larger companies and may be
more affected than other types of securities by the underperformance of a
sector, during market downturns, or by adverse publicity and investor
perceptions.
Recent Market
Conditions. Both U.S. and international markets have experienced significant
volatility in recent months and years. As a result of such volatility,
investment returns may fluctuate significantly. National economies are
substantially interconnected, as are global financial markets, which creates the
possibility that conditions in one country or region might adversely impact
issuers in a different country or region. However, the interconnectedness of
economies and/or markets may be diminishing, which may impact such economies and
markets in ways that cannot be foreseen at this time.
Although interest rates were
unusually low in recent years in the U.S. and abroad, recently, the Federal
Reserve and certain foreign central banks raised interest rates as part of their
efforts to address rising inflation. It is difficult to accurately predict the
pace at which interest rates might increase, the timing, frequency or magnitude
of any such increases in interest rates, or when such increases might stop.
Additionally, various economic and political factors could cause the Federal
Reserve or other foreign central banks to change their approach in the future
and such actions may result in an economic slowdown both in the U.S. and abroad.
Unexpected changes in interest rates could lead to market volatility or reduce
liquidity in certain sectors of the market.
96
Sustainable Equity Fund
Deteriorating economic
fundamentals may, in turn, increase the risk of default or insolvency of
particular issuers, negatively impact market value, cause credit spreads to
widen, and reduce bank balance sheets. Any of these could cause an increase in
market volatility, or reduce liquidity across various markets or decrease
confidence in the markets.
Some countries, including the
U.S., have adopted more protectionist trade policies. Slowing global economic
growth, the rise in protectionist trade policies, changes to some major
international trade agreements, risks associated with the trade agreement
between the United Kingdom and the European Union, and the risks associated with
trade negotiations between the U.S. and China, could affect the economies of
many nations in ways that cannot necessarily be foreseen at the present time. In
addition, the current strength of the U.S. dollar may decrease foreign demand
for U.S. assets, which could have a negative impact on certain issuers and/or
industries.
Regulators in the U.S. have
proposed and adopted a number of changes to regulations involving the markets
and issuers, some of which apply to the Fund. The full effect of various newly
adopted regulations is not currently known. Additionally, it is not currently
known whether any of the proposed regulations will be adopted. However, due to
the scope of regulations being proposed and adopted, certain of these changes to
regulation could limit the Fund’s ability to pursue its investment strategies or
make certain investments, may make it more costly for it to operate, or
adversely impact performance.
Tensions, war, or open
conflict between nations, such as between Russia and Ukraine, in the Middle
East, or in eastern Asia could affect the economies of many nations, including
the United States. The duration of ongoing hostilities and any sanctions and
related events cannot be predicted. Those events present material uncertainty
and risk with respect to markets globally and the performance of the Fund and
its investments or operations could be negatively impacted.
High public debt in the U.S.
and other countries creates ongoing systemic and market risks and policymaking
uncertainty. There is no assurance that the U.S. Congress will act to raise the
nation’s debt ceiling; a failure to do so could cause market turmoil and
substantial investment risks that cannot now be fully predicted. Unexpected
political, regulatory and diplomatic events within the U.S. and abroad may
affect investor and consumer confidence and may adversely impact financial
markets and the broader economy.
There is widespread concern
about the potential effects of global climate change on property and security
values. Certain issuers, industries and regions may be adversely affected by the
impact of climate change in ways that cannot be foreseen. The impact of
legislation, regulation and international accords related to climate change may
negatively impact certain issuers and/or industries.
Redemption Risk. The
Fund may experience periods of large or frequent redemptions that could cause
the Fund to sell assets at inopportune times, which could have a negative impact
on the Fund’s overall liquidity, or at a loss or depressed value. Redemption
risk is greater to the extent that one or more investors or intermediaries
control a large percentage of investments in the Fund and the risk is heightened
during periods of declining or illiquid markets. Large redemptions could hurt
the Fund’s performance, increase transaction costs, and create adverse tax
consequences.
Sector Risk. From time
to time, based on market or economic conditions, the Fund may have significant
positions in one or more sectors of the market. To the extent the Fund invests
more heavily in particular sectors, its performance will be especially sensitive
to developments that significantly affect those sectors. Individual sectors or
sub-sectors may be more volatile, and may perform differently, than the broader
market. The industries that constitute a sector may all react in the same way to
economic, political or regulatory events.
Value Stock Risk.
Value stocks may remain undervalued for extended periods of time, may decrease
in value during a given period, may not ever realize what the portfolio
management team believes to be their full value, or the portfolio management
team’s assumptions about intrinsic value or potential for appreciation may be
incorrect. This may happen, among other reasons, because of a failure to
anticipate which stocks or industries would benefit from changing market or
economic conditions or investor preferences.
A summary of the Fund’s
additional principal investment risks is as follows:
Risk of Increase in
Expenses. A decline in the Fund’s average net assets during the current
fiscal year due to market volatility or other factors could cause the Fund’s
expenses for the current fiscal year to be higher than the expense information
presented in “Fees and Expenses.”
Operational and
Cybersecurity Risk. The Fund and its service providers, and your ability to
transact with the Fund, may be negatively impacted due to operational matters
arising from, among other problems, human errors, systems and technology
disruptions or failures, or cybersecurity incidents. Cybersecurity incidents may
allow an unauthorized party to gain access to fund assets, customer data, or
proprietary information, or cause the Fund or its service providers, as well as
the securities trading venues
97
Sustainable Equity Fund
and their service providers,
to suffer data corruption or lose operational functionality. Cybersecurity
incidents can result from deliberate attacks or unintentional events. It is not
possible for the Manager or the other Fund service providers to identify all of
the cybersecurity or other operational risks that may affect the Fund or to
develop processes and controls to completely eliminate or mitigate their
occurrence or effects. Most issuers in which the Fund invests are heavily
dependent on computers for data storage and operations, and require ready access
to the internet to conduct their business. Thus, cybersecurity incidents could
also affect issuers of securities in which the Fund invests, leading to
significant loss of value.
Risk Management. Risk
is an essential part of investing. No risk management program can eliminate the
Fund’s exposure to adverse events; at best, it may only reduce the possibility
that the Fund will be affected by such events, and especially those risks that
are not intrinsic to the Fund’s investment program. The Fund could experience
losses if judgments about risk prove to be incorrect.
Valuation Risk. The
Fund may not be able to sell an investment at the price at which the Fund has
valued the investment. Such differences could be significant, particularly for
illiquid securities and securities that trade in relatively thin markets and/or
markets that experience extreme volatility. If market or other conditions make
it difficult to value an investment, the Fund may be required to value such
investments using more subjective methods, known as fair value methodologies.
Using fair value methodologies to price investments may result in a value that
is different from an investment’s most recent price and from the prices used by
other funds to calculate their NAVs. The Fund uses pricing services to provide
values for certain securities and there is no assurance that the Fund will be
able to sell an investment at the price established by such pricing services.
The Fund’s ability to value its investments in an accurate and timely manner may
be impacted by technological issues and/or errors by third party service
providers, such as pricing services or accounting
agents.
PERFORMANCE
The following bar chart and
table provide an indication of the risks of investing in the Fund. The bar chart
shows how the Fund’s performance has varied from year to year. The table below
the bar chart shows what the returns would equal if you averaged out actual
performance over various lengths of time and compares the returns with the
returns of a broad-based market index. The index, which
is described in “Descriptions of Indices” in the prospectus, has characteristics
relevant to the Fund’s investment strategy.
The following
performance prior to March 15, 2013, is that of the Fund’s Investor Class.
Because Investor Class has higher expenses than Class R6, its performance
typically would have been lower than that of Class
R6.
Returns would have been lower
if the Manager had not reimbursed certain expenses and/or waived a portion of
the investment management fees during certain of the periods shown.
98
Sustainable Equity Fund
Past performance (before and
after taxes) is not a prediction of future results. Visit
www.nb.com
or call 800-366-6264 for
updated performance information.
year-by-year % Returns as of 12/31 each
year
Years |
Returns |
2013 |
38.46% |
2014 |
10.77% |
2015 |
-0.14% |
2016 |
10.38% |
2017 |
18.85% |
2018 |
-5.56% |
2019 |
26.18% |
2020 |
19.75% |
2021 |
23.73% |
2022 |
-18.38% |
Best
quarter: 2020-06-30Q2 2020 19.35%
Worst
quarter: 2020-03-31Q1 2020 -21.47%
Year to Date performance as
of: 9/30/2023 11.80%
average annual total % returns as of
12/31/22
Sustainable Equity
Fund |
|
1
Year |
|
5
Years |
|
10
Years |
Return
Before Taxes |
|
-18.38 |
|
7.58 |
|
11.22 |
Return
After Taxes on Distributions |
|
-20.20 |
|
5.35 |
|
9.14 |
Return
After Taxes on Distributions and Sale of Fund Shares |
|
-9.56 |
|
5.84 |
|
8.91 |
S&P
500® Index (reflects no deduction for
fees, expenses or taxes) |
|
-18.11 |
|
9.42 |
|
12.56 |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local
taxes. Actual after-tax returns depend on an investor’s
tax situation and may differ from those shown. After-tax returns are not
relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. Return After Taxes on
Distributions and Sale of Fund Shares may be higher than other returns for the
same period due to a tax benefit of realizing a capital loss upon the sale of
Fund shares.
INVESTMENT
MANAGER
Neuberger Berman Investment
Advisers LLC (“Manager”) is the Fund’s investment manager.
PORTFOLIO
MANAGER
The Fund is managed by Daniel
P. Hanson, CFA (Managing Director of the Manager). Mr. Hanson has managed the
Fund since April 2022.
Buying
and Selling Shares
You may purchase, redeem
(sell) or exchange shares of the Fund on any day the New York Stock Exchange is
open, at the Fund’s net asset value per share next determined after your order
is received in proper form. Shares of the Fund generally are available only
through certain investment providers, such as banks, brokerage firms, retirement
plan administrators, and financial advisers. Contact any investment provider
authorized to sell the Fund’s shares. See “Maintaining Your Account” in the
prospectus for eligibility requirements for purchases of Class R6
shares.
For certain institutional
investors, shares of the Fund may be available directly from Neuberger Berman BD
LLC by regular, first class mail (Neuberger Berman Funds, P.O. Box 219189,
Kansas City, MO 64121-9189), by express delivery, registered mail, or certified
mail (Neuberger Berman Funds, 430 West 7th Street, Suite 219189,
Kansas City, MO 64105-1407), or by wire, fax, telephone, or exchange (call
800-366-6264 for instructions). See “Maintaining Your Account” in the prospectus
for eligibility requirements for direct purchases of shares and for instructions
on buying and redeeming (selling) shares directly.
99
Sustainable Equity Fund
The Fund does not impose
minimum purchase requirements for Class R6 shares. However, you should contact
your investment provider to determine whether it imposes minimum purchase
requirements.
Tax
Information
Unless you invest in the Fund
through a tax-advantaged retirement plan or account or are a tax-exempt
investor, you will be subject to tax on Fund distributions to you of ordinary
income and/or net capital gains. Those distributions generally are not taxable
to such a plan or account or a tax-exempt investor, although withdrawals from
certain retirement plans and accounts generally are subject to federal income
tax.
Payments
to Investment Providers and Other Financial Intermediaries
If you purchase shares of
another class of the Fund through an investment provider or other financial
intermediary, such as a bank, brokerage firm, workplace retirement program, or
financial adviser (who may be affiliated with Neuberger Berman), the Fund and/or
Neuberger Berman BD LLC and/or its affiliates may pay the intermediary for the
sale of shares of those other classes of the Fund and related services. These
payments may create a conflict of interest by influencing the investment
provider or other financial intermediary and its employees to recommend the Fund
or those other classes of the Fund over another investment. Neuberger Berman
does not provide ongoing payments to third parties for any record-keeping or
administrative services in connection with investments in Class R6. To the
extent the Fund makes such payments with respect to another class, they can come
only out of the assets of that other class.
100
Sustainable Equity Fund
Descriptions of Certain Practices and Security
Types
Call Options. A call
option gives the purchaser the right to buy an underlying asset or other
reference instrument at a specified price, regardless of the instrument’s market
price at the time. Writing (selling) a call option obligates the writer (seller)
to sell the underlying asset or other reference instrument to the purchaser at a
specified price if the purchaser decides to exercise the option. A call option
is “covered” if the writer (seller) simultaneously holds an equivalent position
in the security underlying the option. The writer (seller) receives a premium
when it writes a call option. Purchasing a call option gives the purchaser the
right to buy the underlying asset or other reference instrument from the writer
(seller) at a specified price if the purchaser decides to exercise the option.
The purchaser pays a premium when it purchases a call option.
Convertible
Securities. Convertible securities are bonds, debentures, notes, preferred
stocks and other securities that pay interest or dividends and are convertible
into or exchangeable for common stocks. Convertible securities generally have
some features of common stocks and some features of debt securities. In general,
a convertible security performs more like a stock when the underlying stock’s
price is high relative to the conversion price (because it is assumed that it
will be converted into the stock) and performs more like a debt security when
the underlying stock’s price is low relative to the conversion price (because it
is assumed that it will mature without being converted). Convertible securities
typically pay an income yield that is higher than the dividend yield of the
issuer’s common stock, but lower than the yield of the issuer’s debt
securities.
Emerging Market
Countries. Emerging market countries are generally considered to be those
countries whose economies are less developed than the economies of countries
such as the United States or most nations in Western Europe.
ESG Investing. Funds
that follow environmental, social and governance considerations seek positive
social and environmental impact in addition to economic success. They are
designed to allow investors to put their money to work and also support
companies that follow principles of good corporate citizenship.
Foreign Stocks. There
are many promising opportunities for investment outside the United States.
Foreign markets can respond to different factors and therefore may follow cycles
that are different from each other. For this reason, many investors put a
portion of their portfolios in foreign investments as a way of gaining further
diversification.
Growth Investing. For
growth investors, the aim is to invest in companies that are already successful
but could be even more so. Often, these stocks are in emerging or rapidly
growing industries. While most growth stocks are known to investors, they may
not yet have reached their full potential. The growth investor looks for
indications of continued success.
Lower-Rated Debt
Securities. Lower-rated debt securities (commonly known as “junk bonds”)
typically offer investors higher yields than other fixed income securities. The
higher yields are usually justified by the weaker credit profiles of these
issuers as compared to investment grade issuers. Lower-rated debt securities may
include debt obligations of all types issued by U.S. and non-U.S. corporate and
governmental entities, including bonds, debentures and notes, loan interests and
preferred stocks that have priority over any other class of stock of the entity
as to the distribution of assets or the payment of dividends. A lower-rated debt
security itself may be convertible into or exchangeable for equity securities,
or it may carry with it the right to acquire equity securities evidenced by
warrants attached to the security or acquired as part of a unit with the
security.
Master Limited
Partnerships. MLPs are limited partnerships (or similar entities) in which
the ownership units (e.g., limited partnership interests) are publicly traded
and units are freely traded on a securities exchange or in the over-the-counter
market. The majority of MLPs operate in oil and gas related businesses,
including energy processing and distribution. Many MLPs are pass-through
entities that generally are taxed at the security holder level and generally are
not subject to federal or state income tax at the partnership level. Annual
income, gains, losses, deductions and credits of an MLP pass-through directly to
its security holders. Distributions from an MLP may consist in part of a return
of capital. Generally, an MLP is operated under the supervision of one or more
managing general partners. Limited partners are not involved in the day-to-day
management of the MLP.
Put Options. A put
option gives the purchaser the right to sell an underlying asset or other
reference instrument at a specified price, regardless of the instrument’s market
price at the time. Writing (selling) a put option obligates the writer (seller)
to buy the underlying asset or other reference instrument from the purchaser at
a specified price if the purchaser decides to exercise the option. The writer
(seller) receives a premium when it writes a put option. Purchasing a put option
gives the purchaser the right to sell the underlying asset or other reference
instrument to the writer (seller) at a specified price if the purchaser decides
to exercise the option. The purchaser pays a premium when it purchases a put
option.
REITs. A REIT is a
pooled investment vehicle that invests primarily in income-producing real estate
or real estate related loans or interests. A domestic REIT is not taxed on net
income and net realized gains that are distributed to its shareholders, provided
it complies with certain requirements of the Internal Revenue Code of 1986, as
amended (“Code”), and similar treatment may also apply to foreign REITs under
the laws in which they are formed. REITs are generally classified as equity
REITs or mortgage
REITs. Equity REITs invest
the majority of their assets directly in real property, derive their income
primarily from rents and can also realize capital gains by selling properties
that have appreciated in value. Mortgage REITs invest the majority of their
assets in real estate mortgages and derive their income primarily from interest
payments.
Value Investing. At
any given time, there are companies whose stock prices, whether based on
earnings, book value, or other financial measures, do not reflect their full
economic opportunities. This happens when investors under-appreciate the
business potential of these companies, or are distracted by transient or
non-fundamental issues. The value investor examines these companies, searching
for those that may rise in price when other investors realize their
worth.
Additional Information about Principal Investment
Risks
This section provides
additional information about a Fund’s principal investment risks described in
its Fund Summary section. The following risks are described in alphabetical
order and not in order of any presumed importance or potential
exposure.
Catalyst Risk.
Investing in companies in anticipation of a catalyst carries the risk that the
catalyst may not happen as anticipated, possibly due to the actions of other
market participants, or may happen in modified or conditional form, or the
market may react to the catalyst differently than expected. Furthermore, a
catalyst, such as a pending restructuring or spin-off, may be renegotiated or
terminated or involve a longer time frame than originally contemplated. In
addition, certain catalysts, such as emergence from, or restructuring as a
result of, bankruptcy, carry additional risks, and the securities of such
companies may be more likely to lose value than the securities of more stable
companies. Securities of issuers undergoing such an event may be more volatile
than other securities, may at times be illiquid, and may be difficult to value,
and management of such a company may be addressing a situation with which it has
little experience. In circumstances where the anticipated catalyst does not
occur or the position is no longer an attractive investment opportunity, the
Fund may incur losses by liquidating that position. If the catalyst later
appears unlikely to occur or is delayed, the market prices of the securities may
decline sharply. These investments may be highly speculative and an incorrect
assessment of the risk associated with such an investment could result in
significant losses to the Fund.
Risks of Investments in
China A-shares through Stock Connect Programs. There are significant risks
inherent in investing in China A-shares through “Connect Programs” of local
stock exchanges in China, namely the Shanghai Connect Program and the Shenzhen
Connect Program. The Chinese investment and banking systems are materially
different in nature from many developed markets, which exposes investors to
risks that are different from those in the U.S. The Connect Programs are subject
to daily quota limitations, and an investor cannot purchase and sell the same
security on the same trading day, which may restrict the Fund’s ability to
invest in China A-shares through the Connect Programs and to enter into or exit
trades on a timely basis. A Connect Program can operate only when both markets
are open for trading and when banking services are available in both markets on
the corresponding settlement days. As such, if one or both markets in a
particular Connect Program are closed on a U.S. trading day, the Fund may not be
able to dispose of its China A-shares in a timely manner under such Connect
Program, which could adversely affect the Fund’s performance. Only certain China
A-shares are eligible to be accessed through the Connect Programs. Such
securities may lose their eligibility at any time, in which case they could be
sold but could no longer be purchased through the Connect Programs.
The impact of this
integration of Chinese and foreign markets is still unclear and the actual
effect on the market for trading China A-shares with the introduction of large
numbers of foreign investors is unknown though in the past the People’s Republic
of China regulators have intervened in the market as they believed necessary,
which may be difficult to predict. The Connect Programs are subject to
regulations promulgated by regulatory authorities for both exchanges and further
regulations or restrictions, such as limitations on redemptions or suspension of
trading, which Chinese regulators have used in the past, may adversely impact
the Connect Programs and may increase volatility, if the authorities believe it
is necessary to assure orderly markets or for other reasons. The relevant
regulations are subject to change, and there is no certainty as to how they will
be applied and Chinese securities trading law can change on a frequent basis.
Investments in China A-shares may not be covered by the securities investor
protection programs of either exchange and, without the protection of such
programs, will be subject to the risk of default by the broker. Because of the
way in which China A-shares are held in the Connect Programs, the Fund may not
be able to exercise the rights of a direct shareholder and may be limited in its
ability to pursue claims against the issuer of a security, and may suffer losses
in the event the legal or “nominee holder” of the China A-shares under the
Connect Programs becomes insolvent. Because all trades on the Connect Programs
in respect of eligible China A-shares must be settled in Renminbi (“RMB”), the
Chinese currency, investors must have timely access to a reliable supply of
offshore RMB, which cannot be guaranteed.
Currently, the mainland
Chinese tax authorities have temporarily exempted foreign investors from income
tax on capital gains derived from the trading of A-shares under the Shanghai
Connect Program and the Shenzhen Connect Program. It is uncertain how long this
will be the case and the exemptions are subject to change.
Convertible Securities
Risk. The value of a convertible security, which is a form of hybrid
security (i.e., a security with both debt and equity characteristics), typically
increases or decreases with the price of the underlying common stock. In
general, a convertible security is subject to the market risks of stocks, and
its price may be as volatile as that of the underlying stock, when the
underlying stock’s price is high relative to the conversion price, and a
convertible security is subject to the market risks of debt securities, and is
particularly sensitive to changes in interest rates, when the underlying stock’s
price is low relative to the conversion price. The general market risks of debt
securities that are common to convertible securities include, but are not
limited to, interest rate risk and credit risk -- that is, the value of
convertible securities will move in the direction opposite to movements in
interest rates; they are subject to the risk that the issuer will not be able to
pay interest or dividends when due; and their market value may change based on
changes in the issuer’s credit rating or the market’s perception of the issuer’s
creditworthiness. Because their value can be influenced by many different
factors, convertible securities generally have less potential for gain or loss
than the underlying common stocks. Securities that are convertible other than at
the option of the holder generally do not limit the potential for loss to the
same extent as securities that are convertible only at the option of the
holder.
Many convertible securities
have credit ratings that are below investment grade and are subject to the same
risks as an investment in lower-rated debt securities (commonly known as “junk
bonds”). Lower-rated debt securities involve greater risks than investment grade
debt securities. Lower-rated debt securities may fluctuate more widely in price
and yield and may fall in price during times when the economy is weak or is
expected to become weak. The credit rating of a company’s convertible securities
is generally lower than that of its non-convertible debt securities. Convertible
securities are normally considered “junior” securities — that is, the company
usually must pay interest on its non-convertible debt securities before it can
make payments on its convertible securities. If the issuer stops paying interest
or principal, convertible securities may become worthless and the Fund could
lose its entire investment. To the extent the Fund invests in convertible
securities issued by small- or mid-cap companies, it will be subject to the
risks of investing in such companies.
Credit Risk. Credit
risk is the risk that issuers, guarantors, or insurers may fail, or become less
able or unwilling, to pay interest and/or principal when due. Changes in the
actual or perceived creditworthiness of an issuer, factors affecting an issuer
directly (such as management changes, labor relations, collapse of key suppliers
or customers, or material changes in overhead costs), factors affecting the
industry in which a particular issuer operates (such as competition or
technological advances) and changes in general social, economic or political
conditions can increase the risk of default by an issuer, which may affect a
security’s credit quality or value. A downgrade or default affecting any of the
Fund’s securities could affect the Fund’s performance by affecting the credit
quality or value of the Fund’s securities. Generally, the longer the maturity
and the lower the credit quality of a security, the more sensitive it is to
credit risk. In addition, lower credit quality may lead to greater volatility in
the price of a security and may negatively affect a security’s liquidity.
Ratings represent a rating agency’s opinion regarding the quality of a security
and are not a guarantee of quality and do not protect against a decline in the
value of a security. In addition, rating agencies may fail to make timely
changes to credit ratings in response to subsequent events and a rating may
become stale in that it fails to reflect changes in an issuer’s financial
condition. The credit quality of a security or instrument can deteriorate
suddenly and rapidly, which may negatively impact its liquidity and value. The
securities in which the Fund invests may be subject to credit enhancement (for
example, guarantees, letters of credit, or bond insurance). Entities providing
credit or liquidity support also may be affected by credit risk. Credit
enhancement is designed to help assure timely payment of the security; it does
not protect the Fund against losses caused by declines in a security’s value due
to changes in market conditions.
Currency Risk.
Currency risk is the risk that foreign currencies will decline in value relative
to the U.S. dollar. To the extent that the Fund invests in securities or other
instruments denominated in or indexed to foreign currencies, changes in currency
exchange rates could adversely impact investment gains or add to investment
losses. Domestic issuers that hold substantial foreign assets may be similarly
affected. Currency exchange rates may fluctuate in response to factors external
to a country’s economy, which makes the forecasting of currency market movements
extremely difficult. Currency exchange rates may fluctuate significantly over
short periods of time and can be affected unpredictably by various factors,
including investor perception of a country’s economy and changes in interest
rates; intervention, or failure to intervene, by U.S. or foreign governments,
central banks, or supranational entities, such as the International Monetary
Fund; or by currency controls or political developments in the U.S. or abroad.
To the extent the Fund invests or hedges based on the perceived relationship
between two currencies, there is a risk that the correlation between those
currencies may not behave as anticipated.
Depositary Receipts Risk.
Depositary receipts are certificates issued by a financial institution
evidencing ownership of underlying foreign securities. Depositary receipts
involve many of the same risks of investing directly in the underlying foreign
securities. Depositary receipts are subject to the risk of fluctuation in the
currency exchange rate if, as is often the case, the underlying foreign
securities are denominated in foreign currency, and there may be an imperfect
correlation between the market value of depositary receipts and the underlying
foreign securities. In addition, holders of depositary receipts may have limited
or no rights, including voting rights, to take action with respect to the
underlying securities or to compel the issuer of the receipts to take
action. There is no guarantee
that a financial institution will continue to sponsor a depositary receipt, or
that a depositary receipt will continue to trade on an exchange, either of which
could adversely affect the liquidity, availability and pricing of the
instrument.
Dividend Risk.
Dividends the Fund receives on common stocks are not fixed but are declared at
the discretion of an issuer’s board of directors. There is no guarantee that the
companies in which the Fund invests will declare dividends in the future or that
dividends, if declared, will remain at current levels or increase over time.
Changes in a company’s dividend policies, either a reduction or elimination, may
cause the Fund to receive less income and may negatively impact that company’s
securities. Securities that pay dividends may be sensitive to changes in
interest rates, and as interest rates rise, or fall, the prices of such
securities may be impacted. A sharp rise in interest rates, or other market
downturn, could result in a decision to decrease or eliminate a dividend. During
a broad market advance, securities that pay dividends may not appreciate as much
as securities that do not pay dividends.
ESG
Criteria Risk. The Fund’s application of ESG criteria is designed and
utilized to help identify companies that demonstrate the potential to create
economic value or reduce risk; however as with the use of any investment
criteria in selecting a portfolio, there is no guarantee that the criteria used
by the Fund will result in the selection of issuers that will outperform other
issuers, or help reduce risk in the portfolio. Investing based on ESG criteria
is qualitative and subjective by nature and there is no guarantee that the
criteria used by the Fund will reflect the beliefs or values of any particular
investor. The use of the Fund’s ESG criteria could also affect the Fund’s
exposure to certain sectors or industries, and could impact the Fund’s
investment performance depending on whether the ESG criteria used are ultimately
reflected in the market. Information used to evaluate the Fund’s application of
ESG criteria, like other information used to identify companies in which to
invest, may not be readily available, complete, or accurate, which could
negatively impact the Fund’s performance or create additional risk in the
portfolio.
Foreign and Emerging
Market Risk. Foreign securities involve risks in addition to those
associated with comparable U.S. securities. Additional risks include exposure to
less developed or less efficient trading markets; social, political, diplomatic,
or economic instability; trade barriers and other protectionist trade policies
(including those of the U.S.); imposition of economic sanctions against a
particular country or countries, organizations, companies, entities and/or
individuals; significant government involvement in an economy and/or market
structure; fluctuations in foreign currencies or currency redenomination;
potential for default on sovereign debt; nationalization or expropriation of
assets; settlement, custodial or other operational risks; higher transaction
costs; confiscatory withholding or other taxes; and less stringent auditing and
accounting, corporate disclosure, governance, and legal standards. The Fund may
have limited or no legal recourse in the event of default with respect to
certain foreign securities. In addition, key information about the issuer, the
markets or the local government or economy may be unavailable, incomplete, or
inaccurate. As a result, foreign securities may fluctuate more widely in price,
and may also be less liquid, than comparable U.S. securities. World markets, or
those in a particular region, may all react in similar fashion to important
economic or political developments. In addition, securities issued by U.S.
entities with substantial foreign operations may involve risks relating to
political, economic, or regulatory conditions in foreign countries, as well as
currency exchange rates. Regardless of where a company is organized or its stock
is traded, its performance may be affected significantly by events in regions
from which it derives its profits or in which it conducts significant
operations.
Investing in emerging market
countries involves risks in addition to and greater than those generally
associated with investing in more developed foreign countries. The governments
of emerging market countries may be more unstable and more likely to impose
capital controls, nationalize a company or industry, place restrictions on
foreign ownership and on withdrawing sale proceeds of securities from the
country, intervene in the financial markets, and/or impose burdensome taxes that
could adversely affect security prices. To the extent a foreign security is
denominated in U.S. dollars, there is also the risk that a foreign government
will not let U.S. dollar-denominated assets leave the country. In addition, the
economies of emerging market countries may be dependent on relatively few
industries that are more susceptible to local and global changes, and may suffer
from extreme and volatile debt burdens or inflation rates. Emerging market
countries may also have less developed legal and accounting systems, and their
legal systems may deal with issuer bankruptcies and defaults differently than
U.S. law would. Shareholder claims and legal remedies that are common in the
United States may be difficult or impossible to pursue in many emerging market
countries. In addition, due to jurisdictional limitations, matters of comity and
various other factors, U.S. authorities may be limited in their ability to bring
enforcement actions against non-U.S. companies and non-U.S. persons in certain
emerging market countries. Most foreign and emerging market companies are not
subject to the uniform accounting, auditing and financial reporting requirements
applicable to issuers in the United States, which may impact the availability
and quality of information about foreign and emerging market issuers. Securities
markets in emerging market countries are also relatively small and have
substantially lower trading volumes. Additionally, in times of market stress,
regulatory authorities of different emerging market countries may apply varying
techniques and degrees of intervention, which can have an effect on prices.
Securities of issuers in
emerging market countries may
be more volatile and less liquid than securities of issuers in foreign countries
with more developed economies or markets and the situation may require that the
Fund fair value its holdings in those countries.
Securities of issuers traded
on foreign exchanges may be suspended, either by the issuers themselves, by an
exchange, or by governmental authorities. The likelihood of such suspensions may
be higher for securities of issuers in emerging or less-developed market
countries than in countries with more developed markets. Trading suspensions may
be applied from time to time to the securities of individual issuers for reasons
specific to that issuer, or may be applied broadly by exchanges or governmental
authorities in response to market events. Suspensions may last for significant
periods of time, during which trading in the securities and in instruments that
reference the securities, such as derivative instruments, may be halted. In the
event that the Fund holds material positions in such suspended securities or
instruments, the Fund’s ability to liquidate its positions or provide liquidity
to investors may be compromised and the Fund could incur significant
losses.
In addition, foreign markets
may perform differently than the U.S. market. Over a given period of time,
foreign securities may underperform U.S. securities — sometimes for years. The
Fund could also underperform if it invests in countries or regions whose
economic performance falls short. To the extent that the Fund invests a portion
of its assets in one country, state, region or currency, an adverse economic,
business or political development may affect the value of the Fund’s investments
more than if its investments were not so invested. Further, from time to time,
based on market or economic conditions, the Fund may invest a significant
portion of its assets in one country or geographic region. If the Fund does so,
there is a greater risk that economic, political, regulatory, diplomatic, social
and environmental conditions in that particular country or geographic region may
have a significant impact on the Fund’s performance and that the Fund’s
performance will be more volatile than the performance of more geographically
diversified funds. The economies and financial markets of certain regions can be
highly interdependent and may decline all at the same time. In addition, certain
areas are prone to natural disasters such as earthquakes, volcanic eruptions,
floods, droughts or tsunamis and are economically sensitive to environmental
events.
The effect of economic
instability on specific foreign markets or issuers may be difficult to predict
or evaluate. Some national economies continue to show profound instability,
which may in turn affect their international trading and financial partners or
other members of their currency bloc.
Foreign Exposure Risk.
Securities issued by U.S. entities with substantial foreign operations or
holdings, or issued by foreign entities listed on a U.S. exchange, may involve
additional risks relating to political, economic, or regulatory conditions in
foreign countries. Additional risks may include exposure to less developed or
less efficient commercial trading markets; social, political, diplomatic or
economic instability; fluctuations in foreign currencies or currency
redenomination; laws limiting or restricting the movement of assets out of the
country; nationalization or expropriation of assets; less stringent legal
standards; possible unfavorable treatment under U.S. tax laws; and
discriminatory application of local regulatory or criminal laws.
Growth Stock Risk.
Because the prices of most growth stocks are based on future expectations, these
stocks tend to be more sensitive than value stocks to bad economic news and
negative earnings surprises. When these expectations are not met or decrease,
the prices of these stocks may decline, sometimes sharply, even if earnings
showed an absolute increase. The Fund attempts to lessen the risk of such losses
by seeking growth stocks that sell at what the adviser believes are attractive
prices. If the adviser is incorrect in its assessment of a stock’s value, this
may negatively impact the Fund. Bad economic news or changing investor
perceptions may adversely affect growth stocks across several sectors and
industries simultaneously. Growth stocks also may lack the dividends often
associated with value stocks that can cushion their decline in a falling market.
While the price of any type of stock may rise and fall rapidly, growth stocks
may underperform during periods when the market favors value stocks.
High Portfolio Turnover
Risk. The Fund may engage in active and frequent trading and may have a high
portfolio turnover rate, which may increase the Fund’s transaction costs, may
adversely affect the Fund’s performance and may generate a greater amount of
capital gain distributions to shareholders than if the Fund had a low portfolio
turnover rate.
Interest Rate Risk. In
general, the value of investments with interest rate risk, such as debt
securities or income-oriented equity securities that pay dividends, will move in
the direction opposite to movements in interest rates. If interest rates rise,
the value of such securities may decline. Interest rates may change in response
to the supply and demand for credit, changes to government monetary policy and
other initiatives, inflation rates, and other factors. Debt securities have
varying levels of sensitivity to changes in interest rates. Typically, the
longer the maturity (i.e., the term of a debt security) or duration (i.e., a
measure of the sensitivity of a debt security to changes in market interest
rates, based on the entire cash flow associated with the security) of a debt
security, the greater the effect a change in interest rates could have on the
security’s price. For example, if interest rates increase by 1%, a debt security
with a duration of two years will decrease in value by approximately 2%. Thus,
the sensitivity of the Fund’s debt securities to interest rate risk will
increase with any increase in the duration of those securities. Short-term
securities tend to react to changes in short-term interest rates, and long-term
securities tend to react to changes in long-term interest rates. Short-term and
long-term
interest rates, and interest
rates in different countries, do not necessarily move in the same direction or
by the same amount. The link between interest rates and debt security prices
tends to be weaker with lower-rated debt securities than with investment grade
debt securities.
Issuer-Specific Risk.
An individual security may be more volatile, and may perform differently, than
the market as a whole. The value of an issuer’s securities may deteriorate
because of a variety of factors, including disappointing earnings reports by the
issuer, unsuccessful products or services, loss of major customers, major
litigation against the issuer, perceived poor management performance, changes in
economic or political conditions or in government regulations affecting the
issuer or the competitive environment. Certain unanticipated events, such as
natural disasters, may have a significant adverse effect on the value of an
issuer’s securities.
Liquidity Risk. From
time to time, the trading market for a particular investment or type of
investment in which the Fund invests is or may become less liquid or even
illiquid. Illiquid investments frequently can be more difficult to purchase or
sell at an advantageous price or time. An illiquid investment means any
investment that the Fund reasonably expects cannot be sold or disposed of in
current market conditions in seven calendar days or less without the sale or
disposition significantly changing the market value of the investment. Judgment
plays a greater role in pricing these investments than it does in pricing
investments having more active markets, and there is a greater risk that the
investments may not be sold for the price at which the Fund is carrying them.
The Fund may receive illiquid securities as a result of its investment in
securities involved in restructurings. Certain investments that were liquid when
the Fund purchased them may become illiquid, sometimes abruptly, particularly
during periods of increased market volatility, adverse investor perception,
economic uncertainty or changes in interest rates. Additionally, market closures
due to holidays or other factors may render a security or group of securities
(e.g., securities tied to a particular country or geographic region) illiquid
for a period of time, which can be extensive. An inability to sell a portfolio
position can adversely affect the Fund’s value or prevent the Fund from being
able to take advantage of other investment opportunities. Market prices for such
securities or other investments may be volatile. Market participants attempting
to sell the same or a similar investment at the same time as the Fund could
decrease the liquidity of such investments, especially during times of market
volatility. During periods of substantial market volatility, an investment or
even an entire market segment may become illiquid, sometimes abruptly, which can
adversely affect the Fund’s ability to limit losses.
Unexpected episodes of
illiquidity, including due to market or political factors, instrument or
issuer-specific factors and/or unanticipated outflows or other factors, may
limit the Fund’s ability to pay redemption proceeds within the allowable time
period. To meet redemption requests during periods of illiquidity, the Fund may
be forced to sell securities at an unfavorable time and/or under unfavorable
conditions.
Lower-Rated Debt
Securities Risk. Lower-rated debt securities (commonly known as “junk
bonds”) and unrated debt securities determined to be of comparable quality
involve greater risks than investment grade debt securities. Such securities may
fluctuate more widely in price and yield and may fall in price, sometimes
abruptly, due to changes in interest rates, market activity, economic
conditions, such as when economic conditions are deteriorating or are expected
to deteriorate, or other factors. These securities may be less liquid and also
may require a greater degree of judgment to establish a price, may be difficult
to sell at the time and price the Fund desires, and may carry higher transaction
costs. In particular, these securities may be issued by smaller companies or by
highly indebted companies, which are generally less able than more financially
stable companies to make scheduled payments of interest and principal.
Lower-rated debt securities are considered by the major rating agencies to be
predominantly speculative with respect to the issuer’s continuing ability to pay
principal and interest and carry a greater risk that the issuer of such
securities will default in the timely payment of principal and interest. Such
securities are susceptible to such a default or decline in market value due to
real or perceived adverse economic and business developments relating to the
issuer, the industry in general, market interest rates and market liquidity.
Such securities may be unsecured or have insufficient collateral and may be
subordinated to other creditors, which increases the risk of loss on these
securities. Issuers of securities that are in default or have defaulted may fail
to resume principal or interest payments, in which case the Fund may lose its
entire investment. Where it deems it appropriate and in the best interests of
Fund shareholders, the Fund may incur additional expenses to seek recovery on a
defaulted security and/or to pursue litigation to protect the Fund’s
investment.
The credit rating of a
security may not accurately reflect the actual credit risk associated with such
a security. The creditworthiness of issuers of these securities may be more
complex to analyze than that of issuers of investment grade debt securities, and
the overreliance on credit ratings may present additional risks.
Adverse publicity and
investor perceptions, such as a high profile default, whether or not based on
fundamental analysis, may decrease the values and liquidity of such securities,
especially in a thinly traded or illiquid market. To the extent the Fund owns or
may acquire illiquid or restricted lower-rated debt securities or unrated debt
securities of comparable quality, these securities may involve special
registration responsibilities, liabilities, costs, and liquidity and valuation
difficulties.
Market Capitalization Risk
(Small-, Mid- and Large-Cap Companies Risk). To the extent the Fund invests
in securities of small-, mid-, or large-cap companies, it takes on the
associated risks. At times, any of these market capitalizations may be out of
favor with investors. Compared to small- and mid-cap companies, large-cap
companies may be unable to respond as quickly to changes and opportunities and
may grow at a slower rate. As such, the return on investment in securities of
large-cap companies may be less than the return on investment in securities of
small- and/or mid-cap companies. Compared to large-cap companies, small- and
mid-cap companies may depend on a more limited management group, may have a
shorter history of operations, less publicly available information, less stable
earnings, and limited product lines, markets or financial resources. The
securities of small- and mid-cap companies may fluctuate more widely in price
than the market as a whole, which at times can be rapid and unpredictable, may
be difficult to sell when the economy is not robust or during market downturns,
and may be more affected than other types of securities by the underperformance
of a sector, during market downturns, or by adverse publicity and investor
perceptions. There may also be less trading in small- or mid-cap securities,
which means that buy and sell transactions in those securities could have a
larger impact on a security’s price than is the case with large-cap securities
and the Fund may not be able to liquidate a position at a particular
time.
A Fund may define small, mid,
and/or large-capitalization companies by reference to the market capitalization
range of companies in a named index. The size of companies in an index changes
with market conditions. In addition, changes to the composition of an index can
change the market capitalization range of companies in the index and, therefore,
the market capitalization range of companies in which a Fund invests.
Market Volatility
Risk. Markets may be volatile and values of individual securities and other
investments, including those of a particular type, may decline significantly in
response to adverse issuer, political, regulatory, market, economic or other
developments that may cause broad changes in market value, public perceptions
concerning these developments, and adverse investor sentiment or publicity.
Changes in the financial condition of a single issuer may impact a market as a
whole. Changes in value may be temporary or may last for extended periods. If
the Fund sells a portfolio position before it reaches its market peak, it may
miss out on opportunities for better performance. Geopolitical risks, including
terrorism, tensions or open conflict between nations, or political or economic
dysfunction within some nations that are major players on the world stage or
major producers of oil, may lead to overall instability in world economies and
markets generally and have led, and may in the future lead, to increased market
volatility and may have adverse long-term effects. Similarly, environmental and
public health risks, such as natural disasters or epidemics, or widespread fear
that such events may occur, may impact markets and economies adversely and cause
market volatility in both the short- and long-term.
Master Limited Partnership
Risk. Investing in MLPs involves certain risks related to investing in the
underlying assets of the MLPs and risks associated with pooled investment
vehicles. MLPs holding credit-related investments are subject to interest rate
risk and the risk of default on payment obligations by debt issuers. MLPs that
concentrate in a particular industry or a particular geographic region are
subject to risks associated with such industry or region. Investments held by
MLPs may be relatively illiquid, limiting the MLPs’ ability to vary their
portfolios promptly in response to changes in economic or other conditions. MLPs
may have limited financial resources, their securities may trade infrequently
and in limited volume, and they may be subject to more abrupt or erratic price
movements than securities of larger or more broadly based companies, and may be
difficult to value. MLPs involve certain other risks, including risks related to
limited control and voting rights on matters affecting MLPs, risks related to
potential conflicts of interest between an MLP and the MLP’s general partner,
cash flow risks, dilution risks and risks related to the general partner’s right
to require unit-holders to sell their common units at an undesirable time or
price. Distributions from an MLP may consist in part of a return of the amount
originally invested, which would not be taxable to the extent the distributions
do not exceed the investor’s adjusted basis in its MLP interest. These
reductions in the Fund’s adjusted tax basis in the MLP securities will increase
the amount of gain (or decrease the amount of loss) recognized by the Fund on a
subsequent sale of the securities.
Much of the benefit the Fund
derives from its investment in equity securities of MLPs is a result of MLPs
generally being treated as partnerships for U.S. federal income tax purposes. A
change in current tax law, or a change in the business of a given MLP, could
result in an MLP being treated as a corporation for U.S. federal income tax
purposes and subject to corporate level tax on its income, and could reduce the
amount of cash available for distribution by the MLP to its unit holders, such
as the Fund. If an MLP were classified as a corporation for federal income tax
purposes, the MLP may incur significant federal and state tax liability, likely
causing a reduction in the value of the Fund’s shares.
The risks of investing in an
MLP generally include those inherent in investing in a partnership as opposed to
a corporation. For example, state law governing partnerships is often less
restrictive than state law governing corporations. Accordingly, there may be
fewer protections afforded investors in an MLP than investors in a corporation.
Although unitholders of an MLP are generally limited in their liability, similar
to a corporation’s shareholders, creditors typically have the right to seek the
return of distributions made to unitholders if the liability in question arose
before the distributions were paid. This liability may stay attached to a
unitholder even after it sells its units.
Effective for taxable years
beginning after December 31, 2017 and before January 1, 2026, the Code
generally allows individuals and certain other non-corporate entities, such as
partnerships, a deduction for 20% of “qualified publicly traded partnership
income” such as income from MLPs. However, the Code does not include any
provision for a regulated investment company to pass the character of its
qualified publicly traded partnership income through to its shareholders. As a
result, although the Treasury Department has announced that it is considering
adopting regulations to provide a pass-through, an investor who invests directly
in MLPs will be able to receive the benefit of that deduction, while a
shareholder in the Fund currently will not.
Non-Diversified Fund
Risk. Neuberger Berman Real Estate Fund is classified as non-diversified. As
such, the percentage of the Fund’s assets invested in any single issuer or a few
issuers is not limited as much as it is for a Fund classified as diversified.
Investing a higher percentage of its assets in any one or a few issuers could
increase the Fund’s risk of loss and its share price volatility, because the
value of its shares would be more susceptible to adverse events affecting those
issuers.
Operational and
Cybersecurity Risk. The Fund and its service providers, and your ability to
transact with the Fund, may be negatively impacted due to operational matters
arising from, among other problems, human errors, systems and technology
disruptions or failures, or cybersecurity incidents. Cybersecurity incidents may
allow an unauthorized party to gain access to fund assets, customer data, or
proprietary information, or cause the Fund or its service providers, as well as
the securities trading venues and their service providers, to suffer data
corruption or lose operational functionality. Cybersecurity incidents can result
from deliberate attacks (e.g., malicious software coding, ransomware, or
“hacking”) or unintentional events (e.g., inadvertent release of confidential
information). A cybersecurity incident could, among other things, result in the
loss or theft of customer data or funds, customers or employees being unable to
access electronic systems (“denial of services”), loss or theft of proprietary
information or corporate data, physical damage to a computer or network system,
or remediation costs associated with system repairs. A cybersecurity incident
may not permit the Fund and its service providers to access electronic systems
to perform critical duties for the Fund, such as trading and calculating net
asset value. Any cybersecurity incident could have a substantial adverse impact
on the Fund and its shareholders.
The occurrence of any of
these problems could result in a loss of information, regulatory scrutiny,
reputational damage and other consequences, any of which could have a material
adverse effect on the Fund or its shareholders. The Manager, through its
monitoring and oversight of Fund service providers, endeavors to determine that
service providers take appropriate precautions to avoid and mitigate risks that
could lead to such problems. While the Manager has established business
continuity plans and risk management systems seeking to address these problems,
there are inherent limitations in such plans and systems, and it is not possible
for the Manager or the other Fund service providers to identify all of the
cybersecurity or other operational risks that may affect the Fund or to develop
processes and controls to completely eliminate or mitigate their occurrence or
effects. Most issuers in which the Fund invests are heavily dependent on
computers for data storage and operations, and require ready access to the
internet to conduct their business. Thus, cybersecurity incidents could also
affect issuers of securities in which the Fund invests, leading to significant
loss of value.
Options Risk. The use
of options involves investment strategies and risks different from those
associated with ordinary portfolio securities transactions. If a strategy is
applied at an inappropriate time or market conditions or trends are judged
incorrectly, the use of options may lower the Fund’s return. There can be no
guarantee that the use of options will increase the Fund’s return or income. In
addition, there may be an imperfect correlation between the movement in prices
of options and the securities underlying them and there may at times not be a
liquid secondary market for various options. An abrupt change in the price of an
underlying security could render an option worthless. The prices of options are
volatile and are influenced by, among other things, actual and anticipated
changes in the value of the underlying instrument, or in interest or currency
exchange rates, including the anticipated volatility of the underlying
instrument (known as implied volatility), which in turn are affected by the
performance of the issuer of the underlying instrument, by fiscal and monetary
policies and by national and international political and economic events. As
such, prior to the exercise or expiration of the option, the Fund is exposed to
implied volatility risk, meaning the value, as based on implied volatility, of
an option may increase due to market and economic conditions or views based on
the sector or industry in which issuers of the underlying instrument
participate, including company-specific factors.
By writing put options, the
Fund takes on the risk of declines in the value of the underlying instrument,
including the possibility of a loss up to the entire strike price of each option
it sells, but without the corresponding opportunity to benefit from potential
increases in the value of the underlying instrument. When the Fund writes a put
option, it assumes the risk that it must purchase the underlying instrument at a
strike price that may be higher than the market price of the instrument. If
there is a broad market decline and the Fund is not able to close out its
written put options, it may result in substantial losses to the Fund. By writing
a call option, the Fund may be obligated to deliver instruments underlying an
option at less than the market price. When the Fund writes a covered call
option, it gives up the opportunity to profit from a price increase in the
underlying instrument above the strike price. If a covered call option that the
Fund has written is exercised, the Fund will experience a gain or loss from the
sale of the underlying instrument, depending on the price at which the Fund
purchased the instrument and the strike price of the option. The Fund will
receive a premium from writing options, but the premium received may not be
sufficient to offset any losses
sustained from exercised
options. In the case of a covered call, the premium received may be offset by a
decline in the market value of the underlying instrument during the option
period. If an option that the Fund has purchased is never exercised or closed
out, the Fund will lose the amount of the premium it paid and the use of those
funds.
Other Investment Company
Risk. To the extent the Fund invests in other investment companies,
including money market funds and exchange-traded funds (ETFs), its performance
will be affected by the performance of those other investment companies and to
the allocation of its assets among those other investment companies. Investments
in other investment companies are subject to the risks of the other investment
companies’ investments, as well as to the other investment companies’ expenses.
If the Fund invests in other investment companies, the Fund may receive
distributions of taxable gains from portfolio transactions by that investment
company and may recognize taxable gains from transactions in shares of that
investment company, which could be taxable to the Fund’s shareholders when
distributed to them.
An ETF may trade in the
secondary market at a price below the value of its underlying portfolio, may not
be liquid and may be halted by the listing exchange. An actively managed ETF’s
performance will reflect its adviser’s ability to make investment decisions that
are suited to achieving the ETF’s investment objectives. A passively managed ETF
may not replicate the performance of the index it intends to track because of,
for example, the temporary unavailability of certain index securities in the
secondary market or discrepancies between the ETF and the index with respect to
the weighting of securities or the number of stocks held. A passively managed
ETF may not be permitted to sell poorly performing stocks that are included in
its index. Investing in ETFs could incur brokerage and other trading costs for
the Fund.
Preferred Securities
Risk. Preferred securities, which are a form of hybrid security (i.e., a
security with both debt and equity characteristics), may pay fixed or adjustable
rates of return. Preferred securities are subject to issuer-specific and market
risks applicable generally to equity securities, however, unlike common stocks,
participation in the growth of an issuer may be limited. Distributions on
preferred securities are generally payable at the discretion of the issuer’s
board of directors and after the company makes required payments to holders of
its debt securities. For this reason, preferred securities are subject to
greater credit, interest, and liquidation risk than debt securities, and the
value of preferred securities will usually react more strongly than debt
securities to actual or perceived changes in the company’s financial condition
or prospects. Preferred securities of smaller companies may be more vulnerable
to adverse developments than preferred securities of larger companies. Preferred
securities may be less liquid than common stocks, and there is a risk an issuer
of preferred securities may call or redeem prior to any stated maturity.
Preferred securities may include provisions that permit the issuer, at its
discretion, to defer or omit distributions for a stated period without any
adverse consequences to the issuer. Preferred shareholders may have certain
rights if distributions are not paid but generally have no legal recourse
against the issuer, may suffer a loss of value if distributions are not paid,
and may be required to report the deferred distribution on its tax returns, even
though it may not have received any cash. Generally, preferred shareholders have
no voting rights with respect to the issuer unless distributions to preferred
shareholders have not been paid for a stated period, at which time the preferred
shareholders may elect a number of directors to the issuer’s board. Generally,
once all the distributions have been paid to preferred shareholders, the
preferred shareholders no longer have voting rights.
Private Companies and
Pre-IPO Investments Risk. Investments in private companies, including
companies that have not yet issued securities publicly in an initial public
offering (“IPO”) (“pre-IPO shares”) involve greater risks than investments in
securities of companies that have traded publicly on an exchange for extended
periods of time. Investments in these companies are generally less liquid than
investments in securities issued by public companies and may be difficult for
the Fund to value. Compared to public companies, private companies may have a
more limited management group and limited operating histories with narrower,
less established product lines and smaller market shares, which may cause them
to be more vulnerable to competitors’ actions, market conditions and consumer
sentiment with respect to their products or services, as well as general
economic downturns. In addition, private companies may have limited financial
resources and may be unable to meet their obligations. This could lead to
bankruptcy or liquidation of such private company or the dilution or
subordination of the Fund’s investment in such private company. Additionally,
there is significantly less information available about private companies’
business models, quality of management, earnings growth potential and other
criteria used to evaluate their investment prospects and the little public
information available about such companies may not be reliable. Because
financial reporting obligations for private companies are not as rigorous as
public companies, it may be difficult to fully assess the rights and values of
securities issued by private companies. The Fund may only have limited access to
a private company’s actual financial results and there is no assurance that the
information obtained by the Fund is reliable. These companies may not ever issue
shares in an IPO and a liquid market for their shares may never develop, which
may negatively affect the price at which the Fund can sell these shares and make
it more difficult to sell these shares, which could also adversely affect the
Fund’s liquidity. If the company does issue shares in an IPO, IPOs are risky and
volatile and may cause the value of the Fund’s investment to decrease
significantly. Furthermore, these investments may be subject to additional
contractual restrictions on resale that would prevent the Fund from selling the
company’s securities for a period of time following any IPO. Moreover, because
securities issued by private companies are
generally not freely or
publicly tradable, the Fund may not have the opportunity to purchase, or the
ability to sell, these securities in the amounts, or at the prices, the Fund
desires. The Fund’s investment in a private company generally will involve
investing in restricted securities.
Private Placements and
Other Restricted Securities Risk. Private placements and other restricted
securities, including securities for which Fund management has material
non-public information, are securities that are subject to legal and/or
contractual restrictions on their sales. These securities may not be sold to the
public unless certain conditions are met, which may include registration under
the applicable securities laws. These securities may not be listed on an
exchange and may have no active trading market. As a result of the absence of a
public trading market, the prices of these securities may be more volatile and
more difficult to determine than publicly traded securities and these securities
may involve heightened risk as compared to investments in securities of publicly
traded companies. Private placements and other restricted securities may be
illiquid, and it frequently can be difficult to sell them at a time when it may
otherwise be desirable to do so or the Fund may be able to sell them only at
prices that are less than what the Fund regards as their fair market value. A
security that was liquid at the time of purchase may subsequently become
illiquid. In addition, transaction costs may be higher for private placements
and other restricted securities. The Fund may have to bear the expense of
registering such securities for sale and there may be substantial delays in
effecting the registration. If, during such a delay, adverse market conditions
were to develop, the Fund might obtain a less favorable price than prevailed at
the time it decided to seek registration of the securities. In addition, the
Fund may get only limited information about the issuer of a private placement or
other restricted security, so it may be less able to anticipate a loss. Also, if
Fund management receives material non-public information about the issuer, the
Fund may, as a result, be legally prohibited from selling the
securities.
Recent Market
Conditions. Both U.S. and international markets have experienced significant
volatility in recent months and years. As a result of such volatility,
investment returns may fluctuate significantly. National economies are
substantially interconnected, as are global financial markets, which creates the
possibility that conditions in one country or region might adversely impact
issuers in a different country or region. However, the interconnectedness of
economies and/or markets may be diminishing, which may impact such economies and
markets in ways that cannot be foreseen at this time.
Although interest rates were
unusually low in recent years in the U.S. and abroad, recently, the Federal
Reserve and certain foreign central banks raised interest rates as part of their
efforts to address rising inflation. In addition, ongoing inflation pressures
could continue to cause an increase in interest rates and/or negatively impact
companies. It is difficult to accurately predict the pace at which interest
rates might increase, or the timing, frequency or magnitude of any such
increases in interest rates, or when such increases might stop. Additionally,
various economic and political factors could cause the Federal Reserve or other
foreign central banks to change their approach in the future and such actions
may result in an economic slowdown both in the U.S. and abroad. Unexpected
changes in interest rates could lead to market volatility or reduce liquidity in
certain sectors of the market. Deteriorating economic fundamentals may, in turn,
increase the risk of default or insolvency of particular issuers, negatively
impact market value, cause credit spreads to widen, and reduce bank balance
sheets. Any of these could cause an increase in market volatility, reduce
liquidity across various markets or decrease confidence in the markets. Also,
regulators have expressed concern that changes in interest rates may cause
investors to sell fixed income securities faster than the market can absorb
them, contributing to price volatility. Over the longer term, the interest rate
increases may present a greater risk than has historically been the case due to
the prior period of relatively low interest rates and the effect of government
fiscal and monetary policy initiatives and potential market reaction to those
initiatives, or their alteration or cessation. Historical patterns of
correlation among asset classes may break down in unanticipated ways during
times of high volatility, disrupting investment programs and potentially causing
losses.
Some countries, including the
U.S., have adopted more protectionist trade policies. Slowing global economic
growth, the rise in protectionist trade policies, changes to some major
international trade agreements, risks associated with the trade agreement
between the United Kingdom and the European Union, and the risks associated with
trade negotiations between the U.S. and China, could affect the economies of
many nations in ways that cannot necessarily be foreseen at the present time. In
addition, the current strength of the U.S. dollar may decrease foreign demand
for U.S. assets, which could have a negative impact on certain issuers and/or
industries.
Regulators in the U.S. have
proposed and adopted a number of changes to regulations involving the markets
and issuers, some of which implicate a Fund. The full effect of various newly
adopted regulations is not currently known. Additionally, it is not currently
known whether any of the proposed regulations will be adopted. However, due to
the scope of regulations being proposed and adopted, certain of these changes to
regulation could limit a Fund’s ability to pursue its investment strategies or
make certain investments, may make it more costly for it to operate, or
adversely impact its performance.
Tensions, war, or open
conflict between nations, such as between Russia and Ukraine, in the Middle
East, or in eastern Asia could affect the economies of many nations, including
the United States. The duration of ongoing hostilities and any sanctions
and
related events cannot be
predicted. Those events present material uncertainty and risk with respect to
markets globally and the performance of a Fund and its investments or operations
could be negatively impacted.
Certain illnesses spread
rapidly and have the potential to significantly and adversely affect the global
economy. The impact of epidemics and/or pandemics that may arise in the future
could negatively affect the economies of many nations, individual companies and
the global securities and commodities markets, including their liquidity, in
ways that cannot necessarily be foreseen at the present time and could last for
an extended period of time.
High public debt in the U.S.
and other countries creates ongoing systemic and market risks and policymaking
uncertainty. There is no assurance that the U.S. Congress will act to raise the
nation’s debt ceiling; a failure to do so could cause market turmoil and
substantial investment risks that cannot now be fully predicted. Unexpected
political, regulatory and diplomatic events within the U.S. and abroad may
affect investor and consumer confidence and may adversely impact financial
markets and the broader economy.
China’s economy, which had
been sustained through debt-financed spending on housing and infrastructure,
appears to be experiencing a significant slowdown and growing at a lower rate
than prior years. Due to the size of China’s economy, such a slowdown could
impact a number of other countries.
There is widespread concern
about the potential effects of global climate change on property and security
values. Certain issuers, industries and regions may be adversely affected by the
impact of climate change in ways that cannot be foreseen. The impact of
legislation, regulation and international accords related to climate change may
negatively impact certain issuers and/or industries.
A rise in sea levels, a
change in weather patterns, including an increase in powerful storms and large
wildfires, and/or a climate-driven increase in flooding could cause properties
to lose value or become unmarketable altogether. Unlike previous declines in the
real estate market, properties in affected zones may not ever recover their
value. The U.S. administration appears concerned about the climate change
problem and is focusing regulatory and public works projects around those
concerns. Regulatory changes and divestment movements tied to concerns about
climate change could adversely affect the value of certain land and the
viability of industries whose activities or products are seen as accelerating
climate change.
Losses related to climate
change could adversely affect corporate issuers and mortgage lenders, the value
of mortgage-backed securities, the bonds of municipalities that depend on tax or
other revenues and tourist dollars generated by affected properties, and
insurers of the property and/or of corporate, municipal or mortgage-backed
securities. Since property and security values are driven largely by buyers’
perceptions, it is difficult to know the time period over which these market
effects might unfold.
Redemption Risk. The
Fund may experience periods of large or frequent redemptions that could cause
the Fund to sell assets at inopportune times, which could have a negative impact
on the Fund’s overall liquidity, or at a loss or depressed value. Redemption
risk is greater to the extent that one or more investors or intermediaries
control a large percentage of investments in the Fund, have short investment
horizons, or have unpredictable cash flow needs. In addition, the risk is
heightened if redemption requests are unusually large or frequent or occur
during periods of declining or illiquid markets. Large redemptions could hurt
the Fund’s performance, increase transaction costs and create adverse tax
consequences.
REITs and Other Real
Estate Companies Risk. REITs and other real estate company securities are
subject to risks similar to those of direct investments in real estate and the
real estate industry in general, including, among other risks: general and local
economic conditions; changes in interest rates; declines in property values;
defaults by mortgagors or other borrowers and tenants; increases in property
taxes and other operating expenses; overbuilding in their sector of the real
estate market; fluctuations in rental income; lack of availability of mortgage
funds or financing; extended vacancies of properties, especially during economic
downturns; changes in tax and regulatory requirements; losses due to
environmental liabilities; casualty or condemnation losses; changing social
trends regarding working arrangements; or other economic, social, political, or
regulatory matters affecting the real estate industry. REITs also are dependent
upon the skills of their managers and are subject to heavy cash flow dependency
or self-liquidation. Regardless of where a REIT is organized or traded, its
performance may be affected significantly by events in the region where its
properties are located. Domestic REITs could be adversely affected by failure to
qualify for tax-free “pass-through” of distributed net investment income and net
realized gains under the Code or to maintain their exemption from registration
under the Investment Company Act of 1940, as amended. Effective for taxable
years beginning after December 31, 2017 and before January 1, 2026,
the Code generally allows individuals and certain other non-corporate entities a
deduction for 20% of qualified REIT dividends. Regulations provide that a
regulated investment company can pass the character of its qualified REIT
dividends through to its shareholders for purposes of benefiting from this
deduction.
While certain of these risk
factors may affect only one or a few real estate sectors at a time, others may
affect the real estate industry broadly. For example, the value of REIT common
shares may decline when interest rates rise. During periods of high interest
rates, REITs and other real estate companies may lose appeal for investors who
may be able to obtain higher yields from
other income-producing
investments. High interest rates may also mean that financing for property
purchases and improvements is more costly and difficult to obtain.
Most equity REITs receive a
flow of income from property rentals, which, after covering their expenses, they
pay to their shareholders in the form of dividends. Equity REITs may be affected
by changes in the value of the underlying property they own, while mortgage
REITs may be affected by the quality of any credit they extend or mortgages they
purchase.
REITs and other real estate
company securities tend to be small- to mid-cap securities and are subject to
the risks of investing in small- to mid-cap securities. Some of the REIT
securities in which the Fund invests may be preferred stock, which receives
preference in the payment of dividends.
Risk Management.
Management undertakes certain analyses with the intention of identifying
particular types of risks and reducing the Fund’s exposure to them. However,
risk is an essential part of investing, and the degree of return an investor
might expect is often tied to the degree of risk the investor is willing to
accept. By its very nature, risk involves exposure to the possibility of adverse
events. Accordingly, no risk management program can eliminate the Fund’s
exposure to such events; at best, it may only reduce the possibility that the
Fund will be affected by adverse events, and especially those risks that are not
intrinsic to the Fund’s investment program. While the prospectus describes
material risk factors associated with the Fund’s investment program, there is no
assurance that as a particular situation unfolds in the markets, management will
identify all of the risks that might affect the Fund, rate their probability or
potential magnitude correctly, or be able to take appropriate measures to reduce
the Fund’s exposure to them. The Fund could experience losses if judgments about
risk prove to be incorrect. Measures taken with the intention of decreasing
exposure to identified risks might have the unintended effect of increasing
exposure to other risks.
Sector Risk. From time
to time, based on market or economic conditions, the Fund may have significant
positions in one or more sectors of the market. To the extent the Fund invests
more heavily in one sector, industry, or sub-sector of the market, its
performance will be especially sensitive to developments that significantly
affect those sectors, industries, or sub-sectors. An individual sector,
industry, or sub-sector of the market may be more volatile, and may perform
differently, than the broader market. The industries that constitute a sector
may all react in the same way to economic, political or regulatory events. The
Fund’s performance could also be affected if the sectors, industries, or
sub-sectors do not perform as expected. Alternatively, the lack of exposure to
one or more sectors or industries may adversely affect performance. For a
summary of the Fund’s recent sector allocations, see its most recent shareholder
report. (The information in the report is as of the date of the report and may
have changed.) For information about the risks of investing in particular
sectors, see the Fund’s Statement of Additional Information.
Securities Lending
Risk. Securities lending involves a possible delay in recovery of the loaned
securities, a possible delay in receiving additional collateral (to cover an
increase in the market value of the loaned securities or a decrease in the value
of any securities collateral), or a possible loss of rights in the collateral
should the borrower fail financially. There is a risk that a borrower may
default on its obligations to return loaned securities, which could negatively
impact the Fund. The Fund could also lose money if the value of the collateral
decreases.
To the extent that the
portfolio securities acquired with such collateral have decreased in value, it
may result in the Fund realizing a loss at a time when it would not otherwise do
so. As such, securities lending may introduce leverage into the Fund. The Fund
also may incur losses if the returns on securities that it acquires with cash
collateral are less than the applicable rebate rates paid to borrowers and
related administrative costs.
Valuation Risk. The
Fund may not be able to sell an investment at the price at which the Fund has
valued the investment. Such differences could be significant, particularly for
illiquid securities and securities that trade in relatively thin markets and/or
markets that experience extreme volatility. If market or other conditions make
it difficult to value an investment, the Fund may be required to value such
investments using more subjective methods, known as fair value methodologies.
Using fair value methodologies to price investments may result in a value that
is different from an investment’s most recent closing price and from the prices
used by other funds to calculate their NAVs. Investors who purchase or redeem
Fund shares on days when the Fund is holding fair-valued securities may receive
fewer or more shares, or lower or higher redemption proceeds, than they would
have received if the Fund had not held fair-valued securities or had used a
different methodology. The value of foreign securities, certain futures, fixed
income securities, and currencies may be materially affected by events after the
close of the markets on which they are traded but before the Fund determines its
net asset value. The Fund uses pricing services to provide values for certain
securities and there is no assurance that the Fund will be able to sell an
investment at the price established by such pricing services. Different pricing
services use different valuation methodologies, potentially resulting in
different values for the same investments. As a result, if the Fund were to
change pricing services, or if a pricing service were to change its valuation
methodology, the value of the Fund’s investments could be impacted. The Fund’s
ability to value its investments in an accurate and timely manner may be
impacted by technological issues and/or errors by third party service providers,
such as pricing services or accounting agents.
Value Stock Risk.
Value stocks may remain undervalued for extended periods of time, may decrease
in value during a given period, may not ever realize what the portfolio
management team believes to be their full value or intrinsic value, or the
portfolio management team’s assumptions about intrinsic value or potential for
appreciation may be incorrect. This may happen because value stocks, as a
category, lose favor with investors compared to growth stocks, because of a
failure to anticipate which stocks or industries would benefit from changing
market or economic conditions a misappraisal of a stock’s growth potential, or
because the stocks’ worth was misgauged. Entire industries or sectors may lose
favor with investors, and the Fund, in seeking value stocks, may focus its
investments more heavily in those industries or sectors.
Risks of Investing in
Variable Interest Entities. For purposes of raising capital offshore on
exchanges outside of People’s Republic of China (PRC), including on U.S.
exchanges, many PRC-based operating companies are structured as entities
commonly-referred to as variable interest entities (“VIEs”). In a typical VIE
structure, the onshore PRC-based operating company is the VIE and establishes an
entity, which is typically offshore in a foreign jurisdiction, such as the
Cayman Islands. The offshore entity lists on a foreign exchange and enters into
contractual arrangements with the VIE. This structure enables PRC companies in
which the PRC government restricts foreign ownership to raise capital from
foreign investors. While the offshore entity has no legal equity ownership of
the VIE, its contractual arrangements with the VIE permit the offshore entity to
consolidate the VIE’s financial statements with its own for Financial Accounting
Standards Board accounting purposes and provide for economic exposure to the
performance of the underlying onshore PRC operating company. Therefore, an
investor in the listed offshore entity, such as the Fund, will have exposure to
the onshore PRC-based operating company only through its contractual
arrangements with the VIE and has no legal ownership in the VIE. Furthermore,
because the offshore entity only has specific rights provided for in these
contractual arrangements with the VIE, its abilities to control the activities
of the VIE are limited and the VIE may engage in activities that negatively
impact investment value. While the VIE structure has been widely adopted, it is
not formally or legally recognized under PRC law and therefore there is a risk
that the PRC government could restrict the effectiveness of such structures or
negatively impact the VIE’s contractual arrangements with the listed offshore
entity by making them invalid under PRC laws. If these contracts were found to
be unenforceable under PRC law, investors in the listed offshore entity, such as
the Fund, may suffer significant losses with little or no recourse available. If
the PRC government determines that the contractual agreements involving VIE
structures do not comply with PRC law and regulations, including those related
to restrictions on foreign ownership, it could subject a VIE to numerous
sanctions such as penalties, revocation of business and operating licenses,
invalidate or terminate contractual arrangements and/or forfeiture or
non-recognition of ownership interest.
In addition, the listed
offshore entity’s benefits through its contractual arrangements over a VIE may
also be jeopardized if a natural person who holds the equity interest in the VIE
is deemed to breach the terms of the contractual arrangement (assuming the
contractual arrangement is held to be valid under PRC laws), is subject to legal
proceedings or if any physical instruments for authenticating documentation by
the VIE, such as chops and seals, are used without the VIE’s authorization to
enter into the contractual arrangements in the PRC. Chops and seals, which are
carved stamps used to sign documents by PRC companies, represent a legally
binding commitment by the PRC company. Moreover, any future PRC regulatory
action may limit or prohibit the ability of the offshore entity to receive the
economic benefits of the VIE, which may cause the value of the Fund’s investment
in the listed offshore entity to suffer a significant loss.
Warrants and Rights
Risk. Warrants and rights do not carry with them the right to dividends or
voting rights with respect to the securities that they entitle their holder to
purchase, and they do not represent any rights in the assets of the issuer. As a
result, warrants and rights may be considered more speculative than certain
other types of investments and are subject to the risks associated with the
security underlying the warrant. In addition, the value of a warrant or right
does not necessarily change with the value of the underlying securities and it
may never be advantageous to exercise a warrant or right. If a warrant or right
to subscribe to additional shares is not exercised or, when permissible, sold
prior to the warrant’s or right’s expiration date or redemption by the issuer,
the Fund would lose all or substantially all of the value of the warrant or
right. The market for warrants and rights may be very limited and there may at
times not be a liquid secondary market for warrants and rights.
Information about Additional Risks and Other
Practices
As discussed in the Statement
of Additional Information, a Fund may engage in certain practices and invest in
certain securities in addition to those described as its “principal investment
strategies” in its Fund Summary section. For example, should a Fund engage in
borrowing or securities lending, or should a Fund use derivatives or invest in
foreign securities, it will be subject to the additional risks associated with
these practices and securities.
Borrowing money, securities
lending, or using derivatives would create investment leverage, meaning that
certain gains or losses would be amplified, increasing share price movements. A
Fund that does not engage in derivatives as part of its principal investment
strategy may, to a limited extent, use certain derivatives for hedging or
investment purposes. A derivative instrument, whether used for hedging or for
speculation, could fail to perform as expected, causing a loss for a
Fund.
Foreign securities, including
those issued by foreign governments, involve risks in addition to those
associated with comparable U.S. securities, and can fluctuate more widely in
price, and may also be less liquid, than comparable U.S. securities. Securities
issued by U.S. entities with substantial foreign operations may involve risks
relating to political, economic, or regulatory conditions in foreign
countries.
In addition, a Fund may be an
investment option for a Neuberger Berman mutual fund that is managed as a “fund
of funds.” As a result, from time to time, a Fund may experience relatively
large redemptions or investments and could be required to sell securities or to
invest cash at a time when it is not advantageous to do so.
In anticipation of adverse or
uncertain market, economic, political, or other temporary conditions, including
during periods of high cash inflows or outflows, a Fund may temporarily depart
from its goal and use a different investment strategy (including leaving a
significant portion of its assets uninvested) for defensive purposes. Doing so
could help a Fund avoid losses, but may mean lost opportunities. In addition, in
doing so different factors could affect a Fund’s performance and a Fund may not
achieve its goal.
In addition, to the extent a
Fund is new or is undergoing a transition (such as a change in strategy,
rebalancing, reorganization, liquidation or experiencing large inflows or
outflows) or takes a temporary defensive position, it may deviate from its
principal investment strategies during such period.
A Fund may change its goal
without shareholder approval, although none currently intend to do
so.
Please see the Statement of
Additional Information for more information.
Descriptions of Indices
The FTSE Nareit All Equity
REITs Index is a free float-adjusted market capitalization-weighted index
that tracks the performance of all equity real estate investment trusts (REITs)
that are listed on the New York Stock Exchange, the NYSE Arca or the NASDAQ
National Market List. Equity REITs include all tax-qualified REITs with more
than 50 percent of total assets in qualifying real estate assets other than
mortgages secured by real property.
The MSCI EAFE®
Index (Net) (Europe, Australasia, Far East) is a free float-adjusted market
capitalization-weighted index that is designed to measure the equity market
performance of developed markets excluding the United States and Canada. The
index consists of the following 21 developed market country indexes: Australia,
Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel,
Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain,
Sweden, Switzerland, and the United Kingdom. Net total return indexes reinvest
dividends after the deduction of withholding taxes, using (for international
indexes) a tax rate applicable to non-resident institutional investors who do
not benefit from double taxation treaties.
The MSCI EAFE®
Small Cap Index (Net) is a free float-adjusted market
capitalization-weighted index that is designed to measure the equity market
performance of the small cap segment of developed markets, excluding the United
States and Canada. The index consists of the following 21 developed market
country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany,
Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway,
Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. Net
total return indexes reinvest dividends after the deduction of withholding
taxes, using (for international indexes) a tax rate applicable to non-resident
institutional investors who do not benefit from double taxation
treaties.
The MSCI Emerging Markets
Index (Net) is a free float-adjusted, market capitalization-weighted index
that is designed to measure the equity market performance of emerging markets.
The index consists of the following 24 emerging market country indexes: Brazil,
Chile, China, Colombia, the Czech Republic, Egypt, Greece, Hungary, India,
Indonesia, Korea, Kuwait, Malaysia, Mexico, Peru, the Philippines, Poland,
Qatar, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey, and the UAE. China
A shares are included starting from June 1, 2018 and are partially
represented at 20% of their free float-adjusted market capitalization as of
November 2019. Effective after the close on March 9, 2022, MSCI
reclassified MSCI Russia Indexes from Emerging Markets to Standalone Markets
status. At that time, all Russian securities were removed from this index at a
final price of 0.00001, including both locally traded Russian equity
constituents and Russian ADRs/GDRs constituents. Net total return indexes
reinvest dividends after the deduction of withholding taxes, using (for
international indexes) a tax rate applicable to non-resident institutional
investors who do not benefit from double taxation treaties.
The Russell
1000® Index is a float-adjusted market capitalization-weighted
index that measures the performance of the large-cap segment of the U.S. equity
market. It includes approximately 1,000 of the largest securities in the Russell
3000® Index (which measures the performance of the 3,000 largest U.S.
public companies based on total market capitalization). The index is rebalanced
annually in June.
The Russell
1000® Growth Index is a float-adjusted market
capitalization-weighted index that measures the performance of the large-cap
growth segment of the U.S. equity market. It includes those Russell
1000® companies with higher price-to-book ratios and higher
forecasted growth values. The index is rebalanced annually in June.
The Russell
1000® Value Index is a float-adjusted market
capitalization-weighted index that measures the performance of the large-cap
value segment of the U.S. equity market. It includes those Russell
1000® Index companies with lower price-to-book ratios and lower
forecasted growth rates. The index is rebalanced annually in June.
The Russell
2000® Index is a float-adjusted market capitalization-weighted
index that measures the performance of the small-cap segment of the U.S. equity
market. It includes approximately 2,000 of the smallest securities in the
Russell 3000® Index (which measures the performance of the 3,000
largest U.S. public companies based on total market capitalization). The index
is rebalanced annually in June.
The Russell
2000® Growth Index is a float-adjusted market
capitalization-weighted index that measures the performance of the small-cap
growth segment of the U.S. equity market. It includes those Russell
2000® Index companies with higher price-to-book ratios and higher
forecasted growth rates. The index is rebalanced annually in June.
The Russell
2000® Value Index is a float-adjusted market
capitalization-weighted index that measures the performance of the small-cap
value segment of the U.S. equity market. It includes those Russell
2000® Index companies with lower price-to-book ratios and lower
forecasted growth rates. The index is rebalanced annually in June.
The Russell
Midcap® Index is a float-adjusted market capitalization-weighted
index that measures the performance of the mid-cap segment of the U.S. equity
market. It includes approximately 800 of the smallest securities in the Russell
1000® Index. The index is rebalanced annually in June.
The Russell
Midcap® Growth Index is a float-adjusted market
capitalization-weighted index that measures the performance of the mid-cap
growth segment of the U.S. equity market. It includes those Russell
Midcap® Index companies with higher price-to-book ratios and higher
forecasted growth rates. The index is rebalanced annually in June.
The Russell
Midcap® Value Index is a float-adjusted market
capitalization-weighted index that measures the performance of the mid-cap value
segment of the U.S. equity market. It includes those Russell Midcap®
Index companies with lower price-to-book ratios and lower forecasted growth
rates. The index is rebalanced annually in June.
The S&P
500® Index is a float-adjusted market capitalization-weighted
index that focuses on the large-cap segment of the U.S. equity market, and
includes a significant portion of the total value of the market.
Management of the Funds
Investment
Manager
Neuberger Berman Investment
Advisers LLC (“Manager”), located at 1290 Avenue of the Americas, New York, NY
10104, is each Fund’s investment manager and administrator. Neuberger Berman BD
LLC (“Distributor”), located at 1290 Avenue of the Americas, New York, NY 10104,
is each Fund’s distributor. Pursuant to an investment advisory agreement, the
Manager is responsible for choosing a Fund’s investments and handling its
day-to-day business. The services provided by the Manager as the investment
manager and administrator include, among others, overall responsibility for
providing all supervisory, management, and administrative services reasonably
necessary for the operation of the Funds, which may include, among others,
compliance monitoring, operational and investment risk management, legal and
administrative services and portfolio accounting services. The Manager carries
out its duties subject to the policies established by the Board of Trustees. The
investment advisory agreement establishes the fees a Fund pays to the Manager
for its services as the Fund’s investment manager and the expenses paid directly
by the Fund. Together, the Neuberger Berman affiliates manage approximately $439
billion in total assets (as of 9/30/2023) and continue an asset management
history that began in 1939.
A discussion regarding the
basis for the Board of Trustees’ approval of the Funds’ investment advisory
agreements is available in the Funds’ semi-annual report for the fiscal period
ended February 28, 2023.
NBIA may engage one or more
of foreign affiliates that are not registered under the Investment Advisers Act
of 1940, as amended (“participating affiliates”) in accordance with applicable
SEC no-action letters. As participating affiliates, whether or not registered
with the SEC, the affiliates may provide designated investment personnel to
associate with NBIA as “associated persons” of NBIA and perform specific
advisory services for NBIA, including services for the Funds, which may involve,
among other services, portfolio management and/or placing orders for securities
and other instruments. The designated employees of a participating
affiliate act for NBIA and
are subject to certain NBIA policies and procedures as well as supervision and
periodic monitoring by NBIA. The Funds will pay no additional fees and expenses
as a result of any such arrangements.
Neither this Prospectus nor
the Statement of Additional Information is intended to give rise to any contract
rights or other rights in any shareholder, other than any rights conferred
explicitly by federal or state securities laws that have not been waived. The
Funds enter into contractual arrangements with various parties, including, among
others, the Manager, who provide services to the Funds. Shareholders are not
parties to, or intended to be third party beneficiaries of, those contractual
arrangements. Where shareholders are not third party beneficiaries of
contractual arrangements, those contractual arrangements cannot be enforced by
shareholders acting on their own behalf.
The Manager has obtained
“manager of managers” exemptive relief from the SEC that permits the Manager,
subject to the approval of the Board of Trustees, to appoint an unaffiliated
subadviser or to change the terms of a subadvisory agreement with an
unaffiliated subadviser for Neuberger Berman Dividend Growth Fund without first
obtaining shareholder approval. The exemptive order permits the Fund to add or
to change unaffiliated subadvisers or to change the fees paid to such
subadvisers from time to time without the expense and delays associated with
obtaining shareholder approval of the change. Under this order, the Manager has
ultimate responsibility (subject to oversight by the Board) to oversee the
subadvisers and recommend their hiring, termination, and replacement. The Fund
will notify shareholders of any change in the identity of a subadviser or the
addition of a subadviser to the Fund.
Neuberger Berman Dividend
Growth Fund: For the 12 months ended 8/31/2023, the management fees (i.e.,
advisory and administration fees) paid to the Manager by the Fund were 0.55% of
average daily net assets for Class R6.
Neuberger Berman Emerging
Markets Equity Fund: For the 12 months ended 8/31/2023, the management fees
(i.e., advisory and administration fees) paid to the Manager by the Fund were
1.03% of average daily net assets for Class R6.
Effective September 1,
2023, the Manager has voluntarily agreed to waive its management fee in the
amount of 0.10% of the average daily net assets of the Fund. The Manager may, at
its sole discretion, modify or terminate this voluntary waiver without notice to
the Fund.
Neuberger Berman Genesis
Fund: For the 12 months ended 8/31/2023, the management fees (i.e., advisory
and administration fees) paid to the Manager by the Fund were 0.71% of average
daily net assets for Class R6.
Neuberger Berman
International Equity Fund: For the 12 months ended 8/31/2023, the management
fees (i.e., advisory and administration fees) paid to the Manager by the Fund
were 0.72% of average daily net assets, after voluntary waiver, for Class
R6.
Effective November 21,
2022, the Manager has voluntarily agreed to waive its management fee in the
amount of 0.15% of the average daily net assets of the Fund. The Manager may, at
its sole discretion, modify or terminate this voluntary waiver without notice to
the Fund. Prior to November 21, 2022, effective October 22, 2019, the
Manager had voluntarily agreed to waive its management fee in the amount of
0.10% of the average daily net assets of the Fund.
Neuberger Berman
International Select Fund: For the 12 months ended 8/31/2023, the management
fees (i.e., advisory and administration fees) paid to the Manager by the Fund
were 0.60% of average daily net assets for Class R6.
Neuberger Berman
International Small Cap Fund: For the 12 months ended 8/31/2023, the
management fees (i.e., advisory and administration fees) paid to the Manager by
the Fund were 0.90% of average daily net assets for Class R6.
Neuberger Berman Intrinsic
Value Fund: For the 12 months ended 8/31/2023, the management fees (i.e.,
advisory and administration fees) paid to the Manager by the Fund were 0.79% of
average daily net assets for Class R6.
Neuberger Berman Large Cap
Growth Fund: For the 12 months ended 8/31/2023, the management fees (i.e.,
advisory and administration fees) paid to the Manager by the Fund were 0.53% of
average daily net assets for Class R6.
Neuberger Berman Large Cap
Value Fund: For the 12 months ended 8/31/2023, the management fees (i.e.,
advisory and administration fees) paid to the Manager by the Fund were 0.47% of
average daily net assets for Class R6.
Neuberger Berman Mid Cap
Growth Fund: For the 12 months ended 8/31/2023, the management fees (i.e.,
advisory and administration fees) paid to the Manager by the Fund were 0.54% of
average daily net assets for Class R6.
Neuberger Berman Mid Cap
Intrinsic Value Fund: For the 12 months ended 8/31/2023, the management fees
(i.e., advisory and administration fees) paid to the Manager by the Fund were
0.60% of average daily net assets for Class R6.
Neuberger Berman Real
Estate Fund: For the 12 months ended 8/31/2023, the management fees (i.e.,
advisory and administration fees) paid to the Manager by the Fund were 0.85% of
average daily net assets for Class R6.
Neuberger Berman Small Cap
Growth Fund: For the 12 months ended 8/31/2023, the management fees (i.e.,
advisory and administration fees) paid to the Manager by the Fund were 0.89% of
average daily net assets for Class R6.
Neuberger Berman
Sustainable Equity Fund: For the 12 months ended 8/31/2023, the management
fees (i.e., advisory and administration fees) paid to the Manager by the Fund
were 0.55% of average daily net assets for Class R6.
Portfolio
Managers
Please see the Statement of
Additional Information for additional information about each Portfolio Manager’s
compensation, other accounts managed by each Portfolio Manager, and each
Portfolio Manager’s ownership of shares in the Fund(s) that he or she
manages.
Neuberger
Berman Dividend Growth Fund
William D. Hunter is a
Managing Director of the Manager. Mr. Hunter joined the firm in 2006 and has
served as Portfolio Manager since the Fund’s inception in
December 2015.
Shawn Trudeau, CFA, is
a Managing Director of the Manager. Mr. Trudeau joined the firm in 2011 and has
served as Portfolio Manager since December 2020.
Neuberger Berman Emerging
Markets Equity Fund
Conrad Saldanha, CFA,
is a Managing Director of the Manager. Mr. Saldanha joined the firm in 2008 and
is a Portfolio Manager for the Emerging Markets Equity team. He has managed the
Fund since its inception in 2008.
Neuberger Berman Genesis
Fund
Robert W. D’Alelio is
a Managing Director of the Manager. Mr. D’Alelio has been a senior member of the
Small Cap Team since 1996. Mr. D’Alelio has co-managed the Fund’s assets since
1997.
Brett S. Reiner is a
Managing Director of the Manager. Mr. Reiner has been a member of the Small Cap
Team since 2003. Mr. Reiner joined the firm in 2000. He has been co-Portfolio
Manager of the Fund since August 2019 and before that was an Associate
Portfolio Manager of the Fund since 2005.
Gregory G. Spiegel is
a Managing Director of the Manager. Mr. Spiegel has been a member of the Small
Cap Team since 2012. Mr. Spiegel joined the firm in 2012. Prior to joining the
firm, Mr. Spiegel was the Director of Research at another firm, covering global
equities and overseeing that firm’s research analysts from 2010 to 2012. He has
been co-Portfolio Manager of the Fund since August 2019 and before that was
an Associate Portfolio Manager of the Fund since 2015.
Neuberger Berman
International Equity Fund
Elias Cohen, CFA, is a
Managing Director of the Manager. Mr. Cohen joined the firm in 2000 and has been
a Portfolio Manager of the Fund since January 2019.
Thomas Hogan, CFA, is
a Managing Director of the Manager. Mr. Hogan joined the firm in 2011 and has
been a Portfolio Manager of the Fund since December 2022 and before that
was an Associate Portfolio Manager of the Fund since 2021.
Neuberger Berman
International Select Fund
Elias Cohen, CFA, is a
Managing Director of the Manager. Mr. Cohen joined the firm in 2000 and has
co-managed the Fund since December 2016.
Thomas Hogan, CFA, is
a Managing Director of the Manager. Mr. Hogan joined the firm in 2011 and has
been a Portfolio Manager of the Fund since December 2022 and before that
was an Associate Portfolio Manager of the Fund since 2021.
Neuberger Berman
International Small Cap Fund
David Bunan is a
Managing Director of the Manager. Mr. Bunan joined the firm in 2008 and has been
the Portfolio Manager of the Fund since its inception in 2016.
Neuberger Berman Intrinsic
Value Fund
Benjamin H. Nahum is a
Managing Director of the Manager. Mr. Nahum joined the firm in 2008. He has
co-managed the Fund since its inception in 2010. Prior to joining the firm, Mr.
Nahum was a principal and executive vice president at David J.
Greene & Co., LLC (“D.J.
Greene”), the investment adviser to the Fund’s predecessor partnership and
account, from 1991 to 2008. D.J. Greene was acquired by Neuberger Berman in
2008. Mr. Nahum was the portfolio manager of the Fund’s predecessors from 1997
to 2010.
James F. McAree is a
Managing Director of the Manager. Mr. McAree joined the firm in 2008. He has
co-managed the Fund since its inception in 2010. Prior to joining the firm, Mr.
McAree was a principal and research analyst at D.J. Greene, the investment
adviser to the Fund’s predecessor partnership and account, from 2005 to 2008.
D.J. Greene was acquired by Neuberger Berman in 2008. Mr. McAree was a research
analyst for the Fund’s predecessors from 2005 to 2010.
Amit Solomon, PhD, is
a Managing Director of the Manager. Mr. Solomon joined the firm in 2008. He has
co-managed the Fund since its inception in 2010. Prior to joining the firm, Mr.
Solomon was a principal and senior research analyst at D.J. Greene, the
investment adviser to the Fund’s predecessor partnership and account, from 2002
to 2008. D.J. Greene was acquired by Neuberger Berman in 2008. Mr. Solomon was a
research analyst for the Fund’s predecessors from 2002 to 2010.
Neuberger Berman Large Cap
Growth Fund
Charles Kantor is a
Managing Director of the Manager. He joined the firm in 2000 and has managed the
Fund since October 2015.
Marc Regenbaum is a
Managing Director of the Manager. Mr. Regenbaum joined the firm in 2007 and has
been a Portfolio Manager of the Fund since December 2020. Prior to
December 2020, he was an Associate Portfolio Manager of the Fund since
February 2017. Prior to being named Associate Portfolio Manager, Mr.
Regenbaum was a Senior Research Analyst for the Long Short and U.S. Equity
Team.
Neuberger Berman Large Cap
Value Fund
Eli M. Salzmann is a
Managing Director of the Manager. Mr. Salzmann joined the firm in 2011 and has
been the Portfolio Manager of the Fund since December 2011. Prior to
joining the firm, Mr. Salzmann spent nearly 14 years at another investment
manager where he was a Partner, Director of Large-Cap Value and a portfolio
manager specializing in U.S. Large-Cap Value strategies.
David Levine, CFA, is
a Managing Director of the Manager. Mr. Levine joined the firm in 1995 and has
been an Associate Portfolio Manager of the Fund since
April 2021.
Neuberger Berman Mid Cap
Growth Fund
Chad Bruso is a
Managing Director of the Manager. He joined the firm in 2006. He has been
co-Portfolio Manager of the Fund since December 2021 and before that was an
Associate Portfolio Manager of the Fund since January 2020.
Trevor Moreno is a
Managing Director of the Manager. He joined the firm in 2014. He has been
co-Portfolio Manager of the Fund since December 2021 and before that was an
Associate Portfolio Manager of the Fund since January 2020. Prior to
joining the firm, he was an assistant portfolio manager and equity analyst at an
investment company.
Jennifer Blachford is
a Senior Vice President of the Manager. She joined the firm in 2019. She has
been an Associate Portfolio Manager of the Fund since December 2021. Prior
to joining the firm, she was a portfolio manager at an investment
company.
Neuberger Berman Mid Cap
Intrinsic Value Fund
Michael C. Greene is a
Managing Director of the Manager. Mr. Greene joined the firm in 2008 and has
managed the Fund since December 2011.
Benjamin H. Nahum is a
Managing Director of the Manager. Mr. Nahum joined the firm in 2008 and has
managed the Fund since May 2021.
James F. McAree is a
Managing Director of the Manager. Mr. McAree joined the firm in 2008 and has
managed the Fund since May 2021.
Amit Solomon, PhD, is
a Managing Director of the Manager. Mr. Solomon joined the firm in 2008 and has
managed the Fund since May 2021.
Rand W. Gesing is a
Senior Vice President of the Manager. Mr. Gesing joined the firm in 2008 and has
managed the Fund since May 2021.
Neuberger Berman Real
Estate Fund
Steve Shigekawa is a
Managing Director of the Manager. He has been co-Portfolio Manager of the Fund
since 2008 and was an Associate Portfolio Manager of the Fund from 2005 to 2008.
Prior to that, he was an analyst with the firm covering REIT securities since
2002.
Brian C. Jones, CFA,
is a Managing Director of the Manager. He has been co-Portfolio Manager of the
Fund since 2008. Prior to that, he was an Associate Portfolio Manager for
separately managed accounts investing in REIT securities since 2007.
Neuberger Berman Small Cap
Growth Fund
Chad Bruso is a
Managing Director of the Manager. He joined the firm in 2006. He has been
co-Portfolio Manager of the Fund since January 2020 and before that was an
Associate Portfolio Manager of the Fund since November 2015.
Trevor Moreno is a
Managing Director of the Manager. He joined the firm in 2014. He has been
co-Portfolio Manager of the Fund since January 2020 and before that was an
Associate Portfolio Manager of the Fund since November 2015. Prior to
joining the firm, he was an assistant portfolio manager and equity analyst at an
investment company.
Jennifer Blachford is
a Senior Vice President of the Manager. She joined the firm in 2019. She has
been an Associate Portfolio Manager of the Fund since December 2021. Prior
to joining the firm, she was a portfolio manager at an investment
company.
Neuberger Berman
Sustainable Equity Fund
Daniel P. Hanson, CFA,
is a Managing Director of the Manager. He has been Senior Portfolio Manager of
the Fund since April 2022. Mr. Hanson joined the firm in 2022. Prior to
joining the firm, Mr. Hanson spent over 25 years at other asset management firms
where he held various roles such as chief investment officer, partner and
portfolio manager.
Financial Highlights
These financial highlights
describe the performance of the Fund’s Class R6 shares for the fiscal periods
indicated. All figures have been derived from the financial statements audited
by Ernst & Young LLP, the Fund’s independent registered public accounting
firm. Their report, along with full financial statements, appears in the Fund’s
most recent annual shareholder report (see back cover).
Neuberger Berman Dividend
Growth Fund — Class R6
YEAR
ENDED AUGUST 31, |
|
2019 |
|
|
2020 |
|
|
2021 |
|
|
2022 |
|
|
2023 |
|
PER-SHARE
DATA ($) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data
apply to a single share throughout each year indicated. You can see what
the Fund earned (or lost), what it distributed to investors, and how its
share price changed. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price (NAV) at beginning of year |
|
|
13.93 |
|
|
|
12.82 |
|
|
|
14.77 |
|
|
|
19.70 |
|
|
|
17.13 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from investment operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss)(3) |
|
|
0.22 |
|
|
|
0.21 |
|
|
|
0.18 |
|
|
|
0.23 |
|
|
|
0.23 |
|
Net
gains (losses) — realized and unrealized |
|
|
(0.63 |
) |
|
|
1.95 |
|
|
|
4.99 |
|
|
|
(2.08 |
) |
|
|
1.91 |
|
Subtotal:
income (loss) from investment operations |
|
|
(0.41 |
) |
|
|
2.16 |
|
|
|
5.17 |
|
|
|
(1.85 |
) |
|
|
2.14 |
|
Minus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
to shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
dividends |
|
|
0.14 |
|
|
|
0.21 |
|
|
|
0.24 |
|
|
|
0.19 |
|
|
|
0.26 |
|
Capital
gain distributions |
|
|
0.56 |
|
|
|
— |
|
|
|
— |
|
|
|
0.53 |
|
|
|
0.45 |
|
Subtotal:
distributions to shareholders |
|
|
0.70 |
|
|
|
0.21 |
|
|
|
0.24 |
|
|
|
0.72 |
|
|
|
0.71 |
|
Equals: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price (NAV) at end of year |
|
|
12.82 |
|
|
|
14.77 |
|
|
|
19.70 |
|
|
|
17.13 |
|
|
|
18.56 |
|
RATIOS
(% OF AVERAGE NET ASSETS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
ratios show the Fund’s expenses and net investment income (loss) — as they
actually are as well as how they would have been if certain expense
reimbursement arrangements had not been in effect. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
expenses — actual |
|
|
0.60 |
|
|
|
0.59 |
|
|
|
0.60 |
|
|
|
0.59 |
|
|
|
0.59 |
|
Gross
expenses(1) |
|
|
1.17 |
|
|
|
1.18 |
|
|
|
1.42 |
|
|
|
1.25 |
|
|
|
1.25 |
|
Net
investment income (loss) — actual |
|
|
1.70 |
|
|
|
1.61 |
|
|
|
1.06 |
|
|
|
1.22 |
|
|
|
1.31 |
|
OTHER
DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return shows how an investment in the Fund would have performed over each
year, assuming all distributions were reinvested. The turnover rate
reflects how actively the Fund bought and sold securities. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%)(2) |
|
|
(2.33 |
) |
|
|
16.98 |
|
|
|
35.34 |
|
|
|
(9.82 |
) |
|
|
12.98 |
|
Net
assets at end of year (in millions of dollars) |
|
|
0.0 |
|
|
|
0.0 |
|
|
|
0.0 |
|
|
|
0.0 |
|
|
|
0.1 |
|
Portfolio
turnover rate (%) |
|
|
45 |
|
|
|
39 |
|
|
|
32 |
|
|
|
21 |
|
|
|
18 |
|
(1) |
Shows
what this ratio would have been if there had been no expense
reimbursement. |
(2) |
Would
have been lower if the Manager had not reimbursed certain
expenses. |
(3) |
Calculated
based on the average number of shares outstanding during the fiscal
period. |
Financial
Highlights
These financial highlights
describe the performance of the Fund’s Class R6 shares for the fiscal periods
indicated. All figures have been derived from the financial statements audited
by Ernst & Young LLP, the Fund’s independent registered public accounting
firm. Their report, along with full financial statements, appears in the Fund’s
most recent annual shareholder report (see back cover).
Neuberger Berman Emerging
Markets Equity Fund — Class R6
YEAR
ENDED AUGUST 31, |
|
2019 |
|
|
2020 |
|
|
2021 |
|
|
2022 |
|
|
2023 |
|
PER-SHARE
DATA ($) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data
apply to a single share throughout each year indicated. You can see what
the Fund earned (or lost), what it distributed to investors, and how its
share price changed. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price (NAV) at beginning of year |
|
|
19.25 |
|
|
|
18.77 |
|
|
|
20.38 |
|
|
|
23.56 |
|
|
|
17.66 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from investment operations |
|
|
0.27 |
|
|
|
0.30 |
|
|
|
0.10 |
|
|
|
0.30 |
|
|
|
0.22 |
|
Net
investment income (loss)(3) |
|
|
(0.56 |
) |
|
|
1.71 |
|
|
|
3.19 |
|
|
|
(5.93 |
) |
|
|
(0.68 |
) |
Net
gains (losses) — realized and unrealized |
|
|
(0.29 |
) |
|
|
2.01 |
|
|
|
3.29 |
|
|
|
(5.63 |
) |
|
|
(0.46 |
) |
Subtotal:
income (loss) from investment operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
to shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
dividends |
|
|
0.19 |
|
|
|
0.40 |
|
|
|
0.11 |
|
|
|
0.27 |
|
|
|
0.09 |
|
Capital
gain distributions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Subtotal:
distributions to shareholders |
|
|
0.19 |
|
|
|
0.40 |
|
|
|
0.11 |
|
|
|
0.27 |
|
|
|
0.09 |
|
Equals: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price (NAV) at end of year |
|
|
18.77 |
|
|
|
20.38 |
|
|
|
23.56 |
|
|
|
17.66 |
|
|
|
17.11 |
|
RATIOS
(% OF AVERAGE NET ASSETS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
ratios show the Fund’s expenses and net investment income (loss) — as they
actually are as well as how they would have been if certain expense
reimbursement arrangements had not been in effect. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
expenses — actual |
|
|
1.16 |
|
|
|
1.15 |
|
|
|
1.10 |
|
|
|
1.11 |
|
|
|
1.17 |
|
Gross
expenses(1) |
|
|
1.16 |
|
|
|
1.15 |
|
|
|
1.10 |
|
|
|
1.11 |
|
|
|
1.22 |
|
Net
investment income (loss) — actual |
|
|
1.42 |
|
|
|
1.58 |
|
|
|
0.43 |
|
|
|
1.47 |
|
|
|
1.31 |
|
OTHER
DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return shows how an investment in the Fund would have performed over each
year, assuming all distributions were reinvested. The turnover rate
reflects how actively the Fund bought and sold securities. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%)(2) |
|
|
(1.45 |
) |
|
|
10.72 |
|
|
|
16.17 |
|
|
|
(24.13 |
) |
|
|
(2.57 |
) |
Net
assets at end of year (in millions of dollars) |
|
|
219.1 |
|
|
|
194.2 |
|
|
|
291.7 |
|
|
|
150.9 |
|
|
|
114.9 |
|
Portfolio
turnover rate (%) |
|
|
37 |
|
|
|
41 |
|
|
|
47 |
|
|
|
39 |
|
|
|
58 |
|
(1) |
Shows
what this ratio would have been if there had been no expense
reimbursement/repayment. |
(2) |
Would
have been lower/higher if the Manager had not reimbursed/recouped certain
expenses. |
(3) |
Calculated
based on the average number of shares outstanding during each fiscal
period. |
Financial
Highlights
These financial highlights
describe the performance of the Fund’s Class R6 shares for the fiscal periods
indicated. All figures have been derived from the financial statements audited
by Ernst & Young LLP, the Fund’s independent registered public accounting
firm. Their report, along with full financial statements, appears in the Fund’s
most recent annual shareholder report (see back cover).
Neuberger Berman Genesis
Fund — Class R6
YEAR
ENDED AUGUST 31, |
|
2019 |
|
|
2020 |
|
|
2021 |
|
|
2022 |
|
|
2023 |
|
PER-SHARE
DATA ($) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data
apply to a single share throughout each year indicated. You can see what
the Fund earned (or lost), what it distributed to investors, and how its
share price changed. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price (NAV) at beginning of year |
|
|
65.23 |
|
|
|
58.45 |
|
|
|
62.62 |
|
|
|
80.14 |
|
|
|
61.61 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from investment operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss)(3) |
|
|
0.19 |
|
|
|
0.16 |
|
|
|
0.07 |
|
|
|
0.10 |
|
|
|
0.21 |
|
Net
gains (losses) — realized and unrealized |
|
|
(0.93 |
) |
|
|
7.58 |
|
|
|
20.23 |
|
|
|
(10.48 |
) |
|
|
5.23 |
|
Subtotal:
income (loss) from investment operations |
|
|
(0.74 |
) |
|
|
7.74 |
|
|
|
20.30 |
|
|
|
(10.38 |
) |
|
|
5.44 |
|
Minus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
to shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
dividends |
|
|
0.20 |
|
|
|
0.19 |
|
|
|
0.08 |
|
|
|
— |
|
|
|
0.15 |
|
Capital
gain distributions |
|
|
5.84 |
|
|
|
3.38 |
|
|
|
2.70 |
|
|
|
8.15 |
|
|
|
6.00 |
|
Subtotal:
distributions to shareholders |
|
|
6.04 |
|
|
|
3.57 |
|
|
|
2.78 |
|
|
|
8.15 |
|
|
|
6.15 |
|
Equals: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price (NAV) at end of year |
|
|
58.45 |
|
|
|
62.62 |
|
|
|
80.14 |
|
|
|
61.61 |
|
|
|
60.90 |
|
RATIOS
(% OF AVERAGE NET ASSETS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
ratios show the Fund’s expenses and net investment income (loss) — as they
actually are as well as how they would have been if certain expense
reimbursement/repayment arrangements had not been in effect. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
expenses — actual |
|
|
0.75 |
|
|
|
0.75 |
|
|
|
0.74 |
|
|
|
0.74 |
|
|
|
0.74 |
|
Gross
expenses |
|
|
0.75 |
(1) |
|
|
0.75 |
(1) |
|
|
0.74 |
(1) |
|
|
0.74 |
|
|
|
0.74 |
|
Net
investment income (loss) — actual |
|
|
0.34 |
|
|
|
0.28 |
|
|
|
0.09 |
|
|
|
0.14 |
|
|
|
0.35 |
|
OTHER
DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return shows how an investment in the Fund would have performed over each
year, assuming all distributions were reinvested. The turnover rate
reflects how actively the Fund bought and sold securities. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%) |
|
|
0.80 |
(2) |
|
|
13.74 |
(2) |
|
|
33.23 |
(2) |
|
|
(14.41 |
) |
|
|
9.92 |
|
Net
assets at end of year (in millions of dollars) |
|
|
4,221.1 |
|
|
|
4,420.9 |
|
|
|
5,744.7 |
|
|
|
4,463.8 |
|
|
|
4,566.4 |
|
Portfolio
turnover rate (%) |
|
|
14 |
|
|
|
11 |
|
|
|
12 |
|
|
|
12 |
|
|
|
17 |
|
(1) |
Shows
what this ratio would have been if there had been no expense
reimbursement/repayment. |
(2) |
Would
have been lower/higher if the Manager had not reimbursed/recouped certain
expenses. |
(3) |
Calculated
based on the average number of shares outstanding during each fiscal
period. |
Financial
Highlights
These financial highlights
describe the performance of the Fund’s Class R6 shares for the fiscal periods
indicated. All figures have been derived from the financial statements audited
by Ernst & Young LLP, the Fund’s independent registered public accounting
firm. Their report, along with full financial statements, appears in the Fund’s
most recent annual shareholder report (see back cover).
Neuberger Berman
International Equity Fund — Class R6
YEAR
ENDED AUGUST 31, |
|
2019 |
|
|
2020 |
|
|
2021 |
|
|
2022 |
|
|
2023 |
|
PER-SHARE
DATA ($) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data
apply to a single share throughout each year indicated. You can see what
the Fund earned (or lost), what it distributed to investors, and how its
share price changed. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price (NAV) at beginning of year |
|
|
13.20 |
|
|
|
12.49 |
|
|
|
14.08 |
|
|
|
17.22 |
|
|
|
11.16 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from investment operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss)(3) |
|
|
0.16 |
|
|
|
0.10 |
|
|
|
0.15 |
|
|
|
0.19 |
|
|
|
0.21 |
|
Net
gains (losses) — realized and unrealized |
|
|
(0.70 |
) |
|
|
1.87 |
|
|
|
3.73 |
|
|
|
(4.43 |
) |
|
|
1.42 |
|
Subtotal:
income (loss) from investment operations |
|
|
(0.54 |
) |
|
|
1.97 |
|
|
|
3.88 |
|
|
|
(4.24 |
) |
|
|
1.63 |
|
Minus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
to shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
dividends |
|
|
0.14 |
|
|
|
0.17 |
|
|
|
0.14 |
|
|
|
0.19 |
|
|
|
0.12 |
|
Capital
gain distributions |
|
|
0.03 |
|
|
|
0.22 |
|
|
|
0.60 |
|
|
|
1.63 |
|
|
|
0.49 |
|
Subtotal:
distributions to shareholders |
|
|
0.17 |
|
|
|
0.39 |
|
|
|
0.74 |
|
|
|
1.82 |
|
|
|
0.61 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voluntary
contribution from Management |
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Equals: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price (NAV) at end of year |
|
|
12.49 |
|
|
|
14.08 |
|
|
|
17.22 |
|
|
|
11.16 |
|
|
|
12.18 |
|
RATIOS
(% OF AVERAGE NET ASSETS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
ratios show the Fund’s expenses and net investment income (loss) — as they
actually are as well as how they would have been if certain expense
reimbursement and/or waiver arrangements had not been in effect. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
expenses — actual |
|
|
0.76 |
|
|
|
0.75 |
|
|
|
0.76 |
|
|
|
0.77 |
|
|
|
0.76 |
|
Gross
expenses(1) |
|
|
0.92 |
|
|
|
0.88 |
|
|
|
0.88 |
|
|
|
0.90 |
|
|
|
0.93 |
|
Net
investment income (loss) — actual |
|
|
1.28 |
|
|
|
0.77 |
|
|
|
1.00 |
|
|
|
1.29 |
|
|
|
1.80 |
|
OTHER
DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return shows how an investment in the Fund would have performed over each
year, assuming all distributions were reinvested. The turnover rate
reflects how actively the Fund bought and sold securities. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%)(2) |
|
|
(3.95 |
) |
|
|
15.91 |
|
|
|
28.57 |
|
|
|
(27.18 |
) |
|
|
15.15 |
|
Net
assets at end of year (in millions of dollars) |
|
|
80.4 |
|
|
|
76.1 |
|
|
|
86.0 |
|
|
|
27.7 |
|
|
|
41.5 |
|
Portfolio
turnover rate (%) |
|
|
34 |
|
|
|
45 |
|
|
|
26 |
|
|
|
49 |
|
|
|
41 |
|
(1) |
Shows
what this ratio would have been if there had been no expense reimbursement
and/or waiver of a portion of investment management fees. |
(2) |
Would
have been lower if the Manager had not reimbursed certain expenses and/or
waived a portion of investment management fees. |
(3) |
Calculated
based on the average number of shares outstanding during each fiscal
period. |
Financial
Highlights
These financial highlights
describe the performance of the Fund’s Class R6 shares for the fiscal periods
indicated. All figures have been derived from the financial statements audited
by Ernst & Young LLP, the Fund’s independent registered public accounting
firm. Their report, along with full financial statements, appears in the Fund’s
most recent annual shareholder report (see back cover).
Neuberger Berman
International Select Fund — Class R6
YEAR
ENDED AUGUST 31, |
|
2019 |
|
|
2020 |
|
|
2021 |
|
|
2022 |
|
|
2023 |
|
PER-SHARE
DATA ($) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data
apply to a single share throughout each year indicated. You can see what
the Fund earned (or lost), what it distributed to investors, and how its
share price changed. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price (NAV) at beginning of year |
|
|
12.96 |
|
|
|
12.29 |
|
|
|
13.90 |
|
|
|
17.61 |
|
|
|
11.57 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from investment operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss)(3) |
|
|
0.23 |
|
|
|
0.04 |
|
|
|
0.13 |
|
|
|
0.24 |
|
|
|
0.21 |
|
Net
gains (losses) — realized and unrealized |
|
|
(0.66 |
) |
|
|
2.00 |
|
|
|
3.81 |
|
|
|
(4.49 |
) |
|
|
1.45 |
|
Subtotal:
income (loss) from investment operations |
|
|
(0.43 |
) |
|
|
2.04 |
|
|
|
3.94 |
|
|
|
(4.25 |
) |
|
|
1.66 |
|
Minus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
to shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
dividends |
|
|
0.11 |
|
|
|
0.24 |
|
|
|
0.13 |
|
|
|
0.17 |
|
|
|
0.16 |
|
Capital
gain distributions |
|
|
0.13 |
|
|
|
0.19 |
|
|
|
0.10 |
|
|
|
1.62 |
|
|
|
0.46 |
|
Subtotal:
distributions to shareholders |
|
|
0.24 |
|
|
|
0.43 |
|
|
|
0.23 |
|
|
|
1.79 |
|
|
|
0.62 |
|
Equals: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price (NAV) at end of year |
|
|
12.29 |
|
|
|
13.90 |
|
|
|
17.61 |
|
|
|
11.57 |
|
|
|
12.61 |
|
RATIOS
(% OF AVERAGE NET ASSETS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
ratios show the Fund’s expenses and net investment income (loss) — as they
actually are as well as how they would have been if certain expense
reimbursement and/or offset arrangements had not been in effect. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
expenses — actual |
|
|
0.71 |
|
|
|
0.70 |
|
|
|
0.71 |
|
|
|
0.73 |
|
|
|
0.71 |
|
Gross
expenses(1) |
|
|
0.87 |
|
|
|
0.84 |
|
|
|
0.88 |
|
|
|
0.89 |
|
|
|
0.96 |
|
Net
investment income (loss) — actual |
|
|
1.88 |
|
|
|
0.28 |
|
|
|
0.83 |
|
|
|
1.58 |
|
|
|
1.71 |
|
OTHER
DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return shows how an investment in the Fund would have performed over each
year, assuming all distributions were reinvested. The turnover rate
reflects how actively the Fund bought and sold securities. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%)(2) |
|
|
(3.11 |
) |
|
|
16.77 |
|
|
|
28.65 |
|
|
|
(26.59 |
) |
|
|
14.90 |
|
Net
assets at end of year (in millions of dollars) |
|
|
29.6 |
|
|
|
1.9 |
|
|
|
1.3 |
|
|
|
0.2 |
|
|
|
0.1 |
|
Portfolio
turnover rate (%) |
|
|
32 |
|
|
|
33 |
|
|
|
21 |
|
|
|
55 |
|
|
|
43 |
|
(1) |
Shows
what this ratio would have been if there had been no expense
reimbursement. |
(2) |
Would
have been lower if the Manager had not reimbursed certain
expenses. |
(3) |
Calculated
based on the average number of shares outstanding during the fiscal
period. |
Financial
Highlights
These financial highlights
describe the performance of the Fund’s Class R6 shares for the fiscal periods
indicated. All figures have been derived from the financial statements audited
by Ernst & Young LLP, the Fund’s independent registered public accounting
firm. Their report, along with full financial statements, appears in the Fund’s
most recent annual shareholder report (see back cover).
Neuberger Berman
International Small Cap Fund — Class R6
YEAR
ENDED AUGUST 31, |
|
2019 |
|
|
2020 |
|
|
2021 |
|
|
2022 |
|
|
2023 |
|
PER-SHARE
DATA ($) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data
apply to a single share throughout each year indicated. You can see what
the Fund earned (or lost), what it distributed to investors, and how its
share price changed. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price (NAV) at beginning of year |
|
|
12.98 |
|
|
|
11.29 |
|
|
|
13.88 |
|
|
|
18.32 |
|
|
|
12.07 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from investment operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss)(3) |
|
|
0.12 |
|
|
|
0.03 |
|
|
|
0.04 |
|
|
|
0.12 |
|
|
|
0.18 |
|
Net
gains (losses) — realized and unrealized |
|
|
(1.59 |
) |
|
|
2.67 |
|
|
|
4.97 |
|
|
|
(5.54 |
) |
|
|
0.84 |
|
Subtotal:
income (loss) from investment operations |
|
|
(1.47 |
) |
|
|
2.70 |
|
|
|
5.01 |
|
|
|
(5.42 |
) |
|
|
1.02 |
|
Minus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
to shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
dividends |
|
|
0.04 |
|
|
|
0.11 |
|
|
|
0.13 |
|
|
|
0.11 |
|
|
|
— |
|
Capital
gain distributions |
|
|
0.18 |
|
|
|
— |
|
|
|
0.44 |
|
|
|
0.72 |
|
|
|
0.61 |
|
Subtotal:
distributions to shareholders |
|
|
0.22 |
|
|
|
0.11 |
|
|
|
0.57 |
|
|
|
0.83 |
|
|
|
0.61 |
|
Equals: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price (NAV) at end of year |
|
|
11.29 |
|
|
|
13.88 |
|
|
|
18.32 |
|
|
|
12.07 |
|
|
|
12.48 |
|
RATIOS
(% OF AVERAGE NET ASSETS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
ratios show the Fund’s expenses and net investment income (loss) — as they
actually are as well as how they would have been if certain expense
reimbursement arrangements had not been in effect. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
expenses — actual |
|
|
0.96 |
|
|
|
0.96 |
|
|
|
0.98 |
|
|
|
0.96 |
|
|
|
0.96 |
|
Gross
expenses(1) |
|
|
6.16 |
|
|
|
5.71 |
|
|
|
13.03 |
|
|
|
10.00 |
|
|
|
10.73 |
|
Net
investment income (loss) — actual |
|
|
1.09 |
|
|
|
0.24 |
|
|
|
0.25 |
|
|
|
0.78 |
|
|
|
1.50 |
|
OTHER
DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return shows how an investment in the Fund would have performed over each
year, assuming all distributions were reinvested. The turnover rate
reflects how actively the Fund bought and sold securities. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%)(2) |
|
|
(11.13 |
) |
|
|
24.01 |
|
|
|
37.14 |
|
|
|
(30.76 |
) |
|
|
8.72 |
|
Net
assets at end of year (in millions of dollars) |
|
|
0.2 |
|
|
|
0.3 |
|
|
|
0.4 |
|
|
|
0.3 |
|
|
|
0.3 |
|
Portfolio
turnover rate (%) |
|
|
32 |
|
|
|
14 |
|
|
|
22 |
|
|
|
21 |
|
|
|
49 |
|
(1) |
Shows
what this ratio would have been if there had been no expense
reimbursement. |
(2) |
Would
have been lower if the Manager had not reimbursed certain
expenses. |
(3) |
Calculated
based on the average number of shares outstanding during the fiscal
period. |
Financial
Highlights
These financial highlights
describe the performance of the Fund’s Class R6 shares for the fiscal periods
indicated. Beginning with the fiscal year ended August 31, 2022, all
figures have been derived from the financial statements audited by Ernst &
Young LLP, the Fund’s independent registered public accounting firm. Their
report, along with full financial statements, appears in the Fund’s most recent
annual shareholder report (see back cover). The information for the fiscal years
or periods prior to August 31, 2022, was audited by a different independent
public accounting firm.
Neuberger Berman Intrinsic
Value Fund — Class R6
YEAR
ENDED AUGUST 31, |
|
2019(1) |
|
|
2020 |
|
|
2021 |
|
|
2022 |
|
|
2023 |
|
PER-SHARE
DATA ($) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data
apply to a single share throughout each year indicated. You can see what
the Fund earned (or lost), what it distributed to investors, and how its
share price changed. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price (NAV) at beginning of year |
|
|
14.22 |
|
|
|
14.52 |
|
|
|
15.17 |
|
|
|
24.09 |
|
|
|
19.09 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from investment operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss)(6) |
|
|
(0.01 |
) |
|
|
(0.02 |
) |
|
|
(0.09 |
) |
|
|
(0.05 |
) |
|
|
0.01 |
|
Net
gains (losses) — realized and unrealized |
|
|
0.31 |
|
|
|
1.11 |
|
|
|
9.33 |
|
|
|
(3.47 |
) |
|
|
1.12 |
|
Subtotal:
income (loss) from investment operations |
|
|
0.30 |
|
|
|
1.09 |
|
|
|
9.24 |
|
|
|
(3.52 |
) |
|
|
1.13 |
|
Minus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
to shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
gain distributions |
|
|
— |
|
|
|
0.44 |
|
|
|
0.32 |
|
|
|
1.48 |
|
|
|
0.67 |
|
Subtotal:
distributions to shareholders |
|
|
— |
|
|
|
0.44 |
|
|
|
0.32 |
|
|
|
1.48 |
|
|
|
0.67 |
|
Equals: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price (NAV) at end of year |
|
|
14.52 |
|
|
|
15.17 |
|
|
|
24.09 |
|
|
|
19.09 |
|
|
|
19.55 |
|
RATIOS
(% OF AVERAGE NET ASSETS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
ratios show the Fund’s expenses and net investment income (loss) — as they
actually are as well as how they would have been if certain expense
reimbursement and/or offset arrangements had not been in effect. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
expenses — actual |
|
|
0.91 |
(4) |
|
|
0.90 |
|
|
|
0.89 |
|
|
|
0.86 |
|
|
|
0.85 |
|
Gross
expenses |
|
|
1.00 |
(2)(4) |
|
|
0.97 |
(2) |
|
|
0.89 |
(2) |
|
|
0.86 |
|
|
|
0.85 |
|
Net
investment income (loss) — actual |
|
|
(0.10 |
)(4) |
|
|
(0.17 |
) |
|
|
(0.44 |
) |
|
|
(0.23 |
) |
|
|
0.06 |
|
OTHER
DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return shows how an investment in the Fund would have performed over each
year, assuming all distributions were reinvested. The turnover rate
reflects how actively the Fund bought and sold securities. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%) |
|
|
2.11 |
(3)(5) |
|
|
7.49 |
(3) |
|
|
61.54 |
(3) |
|
|
(15.49 |
) |
|
|
6.25 |
|
Net
assets at end of year (in millions of dollars) |
|
|
0.2 |
|
|
|
0.1 |
|
|
|
84.0 |
|
|
|
101.3 |
|
|
|
104.5 |
|
Portfolio
turnover rate (%) |
|
|
22 |
(5) |
|
|
19 |
|
|
|
23 |
|
|
|
12 |
|
|
|
10 |
|
(1) |
Period
from 1/18/2019 (beginning of operations) to 8/31/2019. |
(2) |
Shows
what this ratio would have been if there had been no expense
reimbursement/repayment. |
(3) |
Would
have been lower/higher if the Manager had not reimbursed/recouped certain
expenses. |
(4) |
Annualized. |
(5) |
Not
Annualized. |
(6) |
Calculated
based on the average number of shares outstanding during the fiscal
period. |
Financial
Highlights
These financial highlights
describe the performance of the Fund’s Class R6 shares for the fiscal periods
indicated. All figures have been derived from the financial statements audited
by Ernst & Young LLP, the Fund’s independent registered public accounting
firm. Their report, along with full financial statements, appears in the Fund’s
most recent annual shareholder report (see back cover).
Neuberger Berman Large Cap
Growth Fund — Class R6
YEAR
ENDED AUGUST 31, |
|
2019(1) |
|
|
2020 |
|
|
2021 |
|
|
2022 |
|
|
2023 |
|
PER-SHARE
DATA ($) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data
apply to a single share throughout each year indicated. You can see what
the Fund earned (or lost), what it distributed to investors, and how its
share price changed. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price (NAV) at beginning of year |
|
|
16.73 |
|
|
|
18.32 |
|
|
|
23.41 |
|
|
|
29.42 |
|
|
|
21.90 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from investment operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss)(6) |
|
|
0.06 |
|
|
|
0.09 |
|
|
|
0.07 |
|
|
|
0.07 |
|
|
|
0.09 |
|
Net
gains (losses) — realized and unrealized |
|
|
1.53 |
|
|
|
6.22 |
|
|
|
7.77 |
|
|
|
(4.60 |
) |
|
|
3.62 |
|
Subtotal:
income (loss) from investment operations |
|
|
1.59 |
|
|
|
6.31 |
|
|
|
7.84 |
|
|
|
(4.53 |
) |
|
|
3.71 |
|
Minus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
to shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
dividends |
|
|
— |
|
|
|
0.12 |
|
|
|
0.09 |
|
|
|
0.06 |
|
|
|
0.00 |
|
Capital
gain distributions |
|
|
— |
|
|
|
1.10 |
|
|
|
1.74 |
|
|
|
2.93 |
|
|
|
1.27 |
|
Subtotal:
distributions to shareholders |
|
|
— |
|
|
|
1.22 |
|
|
|
1.83 |
|
|
|
2.99 |
|
|
|
1.27 |
|
Equals: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price (NAV) at end of year |
|
|
18.32 |
|
|
|
23.41 |
|
|
|
29.42 |
|
|
|
21.90 |
|
|
|
24.34 |
|
RATIOS
(% OF AVERAGE NET ASSETS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
ratios show the Fund’s expenses and net investment income (loss) — as they
actually are as well as how they would have been if certain expense waiver
and/or offset arrangements had not been in effect. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
expenses — actual |
|
|
0.65 |
(4) |
|
|
0.65 |
|
|
|
0.65 |
|
|
|
0.65 |
|
|
|
0.59 |
|
Gross
expenses(2) |
|
|
0.97 |
(4) |
|
|
0.65 |
|
|
|
0.68 |
|
|
|
0.66 |
|
|
|
0.59 |
|
Net
investment income (loss) — actual |
|
|
0.75 |
(4) |
|
|
0.47 |
|
|
|
0.26 |
|
|
|
0.28 |
|
|
|
0.40 |
|
OTHER
DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return shows how an investment in the Fund would have performed over each
year, assuming all distributions were reinvested. The turnover rate
reflects how actively the Fund bought and sold securities. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%)(3) |
|
|
9.50 |
(5) |
|
|
36.09 |
|
|
|
35.72 |
|
|
|
(17.01 |
) |
|
|
18.33 |
|
Net
assets at end of year (in millions of dollars) |
|
|
0.0 |
|
|
|
0.0 |
|
|
|
0.2 |
|
|
|
0.2 |
|
|
|
4.7 |
|
Portfolio
turnover rate (%) |
|
|
37 |
(5) |
|
|
49 |
|
|
|
28 |
|
|
|
32 |
|
|
|
35 |
|
(1) |
Period
from 3/29/2019 (beginning of operations) to 8/31/2019. |
(2) |
Shows
what this ratio would have been if there had been no expense
reimbursement/repayment. |
(3) |
Would
have been lower/higher if the Manager had not reimburse/recouped certain
expenses. |
(4) |
Annualized. |
(5) |
Not
Annualized. |
(6) |
Calculated
based on the average number of shares outstanding during the fiscal
period. |
Financial
Highlights
These financial highlights
describe the performance of the Fund’s Class R6 shares for the fiscal periods
indicated. All figures have been derived from the financial statements audited
by Ernst & Young LLP, the Fund’s independent registered public accounting
firm. Their report, along with full financial statements, appears in the Fund’s
most recent annual shareholder report (see back cover).
Neuberger Berman Large Cap
Value Fund — Class R6
YEAR
ENDED AUGUST 31, |
|
2019(1) |
|
|
2020 |
|
|
2021 |
|
|
2022 |
|
|
2023 |
|
PER-SHARE
DATA ($) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data
apply to a single share throughout each year indicated. You can see what
the Fund earned (or lost), what it distributed to investors, and how its
share price changed. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price (NAV) at beginning of year |
|
|
28.19 |
|
|
|
30.59 |
|
|
|
30.41 |
|
|
|
44.89 |
|
|
|
40.81 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from investment operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss)(6) |
|
|
0.45 |
|
|
|
0.63 |
|
|
|
0.78 |
|
|
|
0.94 |
|
|
|
0.98 |
|
Net
gains (losses) — realized and unrealized |
|
|
1.95 |
|
|
|
0.51 |
|
|
|
14.37 |
|
|
|
(2.67 |
) |
|
|
1.39 |
|
Subtotal:
income (loss) from investment operations |
|
|
2.40 |
|
|
|
1.14 |
|
|
|
15.15 |
|
|
|
(1.73 |
) |
|
|
2.37 |
|
Minus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
to shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
dividends |
|
|
— |
|
|
|
0.67 |
|
|
|
0.58 |
|
|
|
0.67 |
|
|
|
0.78 |
|
Capital
gain distributions |
|
|
— |
|
|
|
0.65 |
|
|
|
0.09 |
|
|
|
1.68 |
|
|
|
— |
|
Subtotal:
distributions to shareholders |
|
|
— |
|
|
|
1.32 |
|
|
|
0.67 |
|
|
|
2.35 |
|
|
|
0.78 |
|
Equals: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price (NAV) at end of year |
|
|
30.59 |
|
|
|
30.41 |
|
|
|
44.89 |
|
|
|
40.81 |
|
|
|
42.40 |
|
RATIOS
(% OF AVERAGE NET ASSETS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
ratios show the Fund’s expenses and net investment income (loss) — as they
actually are as well as how they would have been if certain expense offset
arrangements had not been in effect. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
expenses — actual |
|
|
0.61 |
(4) |
|
|
0.59 |
|
|
|
0.53 |
|
|
|
0.51 |
|
|
|
0.51 |
|
Gross
expenses |
|
|
0.67 |
(2)(4) |
|
|
0.59 |
(2) |
|
|
0.53 |
(2) |
|
|
0.51 |
|
|
|
0.51 |
|
Net
investment income (loss) — actual |
|
|
2.39 |
(4) |
|
|
2.19 |
|
|
|
1.95 |
|
|
|
2.14 |
|
|
|
2.32 |
|
OTHER
DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return shows how an investment in the Fund would have performed over each
year, assuming all distributions were reinvested. The turnover rate
reflects how actively the Fund bought and sold securities. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%) |
|
|
8.51 |
(3)(5) |
|
|
3.54 |
(3) |
|
|
50.39 |
(3) |
|
|
(4.13 |
) |
|
|
5.79 |
|
Net
assets at end of year (in millions of dollars) |
|
|
0.3 |
|
|
|
91.4 |
|
|
|
190.6 |
|
|
|
342.4 |
|
|
|
560.6 |
|
Portfolio
turnover rate (%) |
|
|
109 |
(5) |
|
|
157 |
|
|
|
89 |
|
|
|
82 |
|
|
|
81 |
|
(1) |
Period
from 1/18/2019 (beginning of operations) to 8/31/2019. |
(2) |
Shows
what this ratio would have been if there had been no expense
reimbursement/repayment. |
(3) |
Would
have been lower/higher if the Manager had not reimbursed/recouped certain
expenses. |
(4) |
Annualized. |
(5) |
Not
Annualized. |
(6) |
Calculated
based on the average number of shares outstanding during the fiscal
period. |
Financial
Highlights
These financial highlights
describe the performance of the Fund’s Class R6 shares for the fiscal periods
indicated. Beginning with the fiscal year ended August 31, 2022, all
figures have been derived from the financial statements audited by Ernst &
Young LLP, the Fund’s independent registered public accounting firm. Their
report, along with full financial statements, appears in the Fund’s most recent
annual shareholder report (see back cover). The information for the fiscal years
or periods prior to August 31, 2022, was audited by a different independent
public accounting firm.
Neuberger Berman Mid Cap
Growth Fund — Class R6
YEAR
ENDED AUGUST 31, |
|
2019 |
|
|
2020 |
|
|
2021 |
|
|
2022 |
|
|
2023 |
|
PER-SHARE
DATA ($) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data
apply to a single share throughout each year indicated. You can see what
the Fund earned (or lost), what it distributed to investors, and how its
share price changed. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price (NAV) at beginning of year |
|
|
16.82 |
|
|
|
15.86 |
|
|
|
18.39 |
|
|
|
22.79 |
|
|
|
14.67 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from investment operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss)(1) |
|
|
— |
|
|
|
(0.02 |
) |
|
|
(0.06 |
) |
|
|
(0.00 |
) |
|
|
0.03 |
|
Net
gains (losses) — realized and unrealized |
|
|
0.47 |
|
|
|
3.39 |
|
|
|
6.37 |
|
|
|
(4.99 |
) |
|
|
0.60 |
|
Subtotal:
income (loss) from investment operations |
|
|
0.47 |
|
|
|
3.37 |
|
|
|
6.31 |
|
|
|
(4.99 |
) |
|
|
0.63 |
|
Minus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
to shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
gain distributions |
|
|
1.43 |
|
|
|
0.84 |
|
|
|
1.91 |
|
|
|
3.13 |
|
|
|
0.64 |
|
Subtotal:
distributions to shareholders |
|
|
1.43 |
|
|
|
0.84 |
|
|
|
1.91 |
|
|
|
3.13 |
|
|
|
0.64 |
|
Equals: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price (NAV) at end of year |
|
|
15.86 |
|
|
|
18.39 |
|
|
|
22.79 |
|
|
|
14.67 |
|
|
|
14.66 |
|
RATIOS
(% OF AVERAGE NET ASSETS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
ratios show the Fund’s expenses and net investment income (loss) — as they
actually are as well as how they would have been if certain expense
reimbursement/repayment arrangements had not been in effect. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
expenses — actual |
|
|
0.61 |
|
|
|
0.60 |
|
|
|
0.57 |
|
|
|
0.59 |
|
|
|
0.60 |
|
Gross
expenses |
|
|
0.61 |
|
|
|
0.60 |
|
|
|
0.57 |
|
|
|
0.59 |
|
|
|
0.60 |
|
Net
investment income (loss) — actual |
|
|
(0.03 |
) |
|
|
(0.11 |
) |
|
|
(0.31 |
) |
|
|
(0.01 |
) |
|
|
0.18 |
|
OTHER
DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return shows how an investment in the Fund would have performed over each
year, assuming all distributions were reinvested. The turnover rate
reflects how actively the Fund bought and sold securities. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%) |
|
|
5.20 |
|
|
|
22.27 |
|
|
|
35.99 |
|
|
|
(24.71 |
) |
|
|
4.68 |
|
Net
assets at end of year (in millions of dollars) |
|
|
461.1 |
|
|
|
524.1 |
|
|
|
753.3 |
|
|
|
538.5 |
|
|
|
541.9 |
|
Portfolio
turnover rate (%) |
|
|
48 |
|
|
|
55 |
|
|
|
42 |
|
|
|
58 |
|
|
|
101 |
|
(1) |
Calculated
based on the average number of shares outstanding during each fiscal
period. |
Financial
Highlights
These financial highlights
describe the performance of the Fund’s Class R6 shares for the fiscal periods
indicated. Beginning with the fiscal year ended August 31, 2022, all
figures have been derived from the financial statements audited by Ernst &
Young LLP, the Fund’s independent registered public accounting firm. Their
report, along with full financial statements, appears in the Fund’s most recent
annual shareholder report (see back cover). The information for the fiscal years
or periods prior to August 31, 2022, was audited by a different independent
public accounting firm.
Neuberger Berman Mid Cap
Intrinsic Value Fund — Class R6
YEAR
ENDED AUGUST 31, |
|
2019(1) |
|
|
2020 |
|
|
2021 |
|
|
2022 |
|
|
2023 |
|
PER-SHARE
DATA ($) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data
apply to a single share throughout each year indicated. You can see what
the Fund earned (or lost), what it distributed to investors, and how its
share price changed. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price (NAV) at beginning of year |
|
|
20.50 |
|
|
|
19.32 |
|
|
|
16.03 |
|
|
|
24.65 |
|
|
|
23.64 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from investment operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss)(6) |
|
|
0.10 |
|
|
|
0.28 |
|
|
|
0.20 |
|
|
|
0.26 |
|
|
|
0.29 |
|
Net
gains (losses) — realized and unrealized |
|
|
(1.28 |
) |
|
|
(3.27 |
) |
|
|
8.50 |
|
|
|
(1.09 |
) |
|
|
0.67 |
|
Subtotal:
income (loss) from investment operations |
|
|
(1.18 |
) |
|
|
(2.99 |
) |
|
|
8.70 |
|
|
|
(0.83 |
) |
|
|
0.96 |
|
Minus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
to shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
dividends |
|
|
— |
|
|
|
0.30 |
|
|
|
0.08 |
|
|
|
0.18 |
|
|
|
0.26 |
|
Subtotal:
distributions to shareholders |
|
|
— |
|
|
|
0.30 |
|
|
|
0.08 |
|
|
|
0.18 |
|
|
|
0.26 |
|
Equals: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price (NAV) at end of year |
|
|
19.32 |
|
|
|
16.03 |
|
|
|
24.65 |
|
|
|
23.64 |
|
|
|
24.34 |
|
RATIOS
(% OF AVERAGE NET ASSETS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
ratios show the Fund’s expenses and net investment income (loss) — as they
actually are as well as how they would have been if certain expense waiver
and/or offset arrangements had not been in effect. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
expenses — actual |
|
|
0.78 |
(4) |
|
|
0.76 |
|
|
|
0.76 |
|
|
|
0.75 |
|
|
|
0.75 |
|
Gross
expenses(2) |
|
|
1.44 |
(4) |
|
|
1.02 |
|
|
|
1.72 |
|
|
|
1.55 |
|
|
|
1.71 |
|
Net
investment income (loss) — actual |
|
|
1.14 |
(4) |
|
|
1.62 |
|
|
|
0.94 |
|
|
|
1.06 |
|
|
|
1.20 |
|
OTHER
DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return shows how an investment in the Fund would have performed over each
year, assuming all distributions were reinvested. The turnover rate
reflects how actively the Fund bought and sold securities. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%)(3) |
|
|
(5.76 |
)(5) |
|
|
(15.79 |
) |
|
|
54.45 |
|
|
|
(3.42 |
) |
|
|
4.11 |
|
Net
assets at end of year (in millions of dollars) |
|
|
0.0 |
|
|
|
0.0 |
|
|
|
0.0 |
|
|
|
0.0 |
|
|
|
0.0 |
|
Portfolio
turnover rate (%) |
|
|
56 |
(5) |
|
|
16 |
|
|
|
31 |
|
|
|
22 |
|
|
|
15 |
|
(1) |
Period
from 3/29/2019 (beginning of operations) to 8/31/2019. |
(2) |
Shows
what this ratio would have been if there had been no expense reimbursement
and/or waiver of a portion of the investment management fee. |
(3) |
Would
have been lower if the Manager had not reimbursed certain expenses and/or
waived a portion of the investment management fee. |
(4) |
Annualized. |
(5) |
Not
Annualized. |
(6) |
Calculated
based on the average number of shares outstanding during the fiscal
period. |
Financial
Highlights
These financial highlights
describe the performance of the Fund’s Class R6 shares for the fiscal periods
indicated. All figures have been derived from the financial statements audited
by Ernst & Young LLP, the Fund’s independent registered public accounting
firm. Their report, along with full financial statements, appears in the Fund’s
most recent annual shareholder report (see back cover).
Neuberger Berman Real
Estate Fund — Class R6
YEAR
ENDED AUGUST 31, |
|
2019 |
|
|
2020 |
|
|
2021 |
|
|
2022 |
|
|
2023 |
|
PER-SHARE
DATA ($) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data
apply to a single share throughout each year indicated. You can see what
the Fund earned (or lost), what it distributed to investors, and how its
share price changed. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price (NAV) at beginning of year |
|
|
13.39 |
|
|
|
15.19 |
|
|
|
13.81 |
|
|
|
18.16 |
|
|
|
15.52 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from investment operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss)(3) |
|
|
0.21 |
|
|
|
0.20 |
|
|
|
0.24 |
|
|
|
0.19 |
|
|
|
0.34 |
|
Net
gains (losses) — realized and unrealized |
|
|
2.47 |
|
|
|
(0.80 |
) |
|
|
4.43 |
|
|
|
(2.02 |
) |
|
|
(1.86 |
) |
Subtotal:
income (loss) from investment operations |
|
|
2.68 |
|
|
|
(0.60 |
) |
|
|
4.67 |
|
|
|
(1.83 |
) |
|
|
(1.52 |
) |
Minus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
to shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
dividends |
|
|
0.22 |
|
|
|
0.21 |
|
|
|
0.24 |
|
|
|
0.21 |
|
|
|
0.32 |
|
Capital
gain distributions |
|
|
0.66 |
|
|
|
0.57 |
|
|
|
0.08 |
|
|
|
0.60 |
|
|
|
1.31 |
|
Subtotal:
distributions to shareholders |
|
|
0.88 |
|
|
|
0.78 |
|
|
|
0.32 |
|
|
|
0.81 |
|
|
|
1.63 |
|
Equals: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price (NAV) at end of year |
|
|
15.19 |
|
|
|
13.81 |
|
|
|
18.16 |
|
|
|
15.52 |
|
|
|
12.37 |
|
RATIOS
(% OF AVERAGE NET ASSETS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
ratios show the Fund’s expenses and net investment income (loss) — as they
actually are as well as how they would have been if certain expense
reimbursement arrangements had not been in effect. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
expenses — actual |
|
|
0.76 |
|
|
|
0.75 |
|
|
|
0.75 |
|
|
|
0.75 |
|
|
|
0.75 |
|
Gross
expenses(1) |
|
|
0.97 |
|
|
|
0.94 |
|
|
|
0.93 |
|
|
|
0.92 |
|
|
|
0.94 |
|
Net
investment income (loss) — actual |
|
|
1.55 |
|
|
|
1.45 |
|
|
|
1.59 |
|
|
|
1.10 |
|
|
|
2.60 |
|
OTHER
DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return shows how an investment in the Fund would have performed over each
year, assuming all distributions were reinvested. The turnover rate
reflects how actively the Fund bought and sold securities. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%)(2) |
|
|
21.55 |
|
|
|
(3.87 |
) |
|
|
34.45 |
|
|
|
(10.62 |
) |
|
|
(9.76 |
) |
Net
assets at end of year (in millions of dollars) |
|
|
74.0 |
|
|
|
107.1 |
|
|
|
167.9 |
|
|
|
146.9 |
|
|
|
152.7 |
|
Portfolio
turnover rate (%) |
|
|
38 |
|
|
|
26 |
|
|
|
22 |
|
|
|
37 |
|
|
|
38 |
|
(1) |
Shows
what this ratio would have been if there had been no expense
reimbursement. |
(2) |
Would
have been lower if the Manager had not reimbursed certain
expenses. |
(3) |
Calculated
based on the average number of shares outstanding during each fiscal
period. |
Financial
Highlights
These financial highlights
describe the performance of the Fund’s Class R6 shares for the fiscal periods
indicated. Beginning with the fiscal year ended August 31, 2022, all
figures have been derived from the financial statements audited by Ernst &
Young LLP, the Fund’s independent registered public accounting firm. Their
report, along with full financial statements, appears in the Fund’s most recent
annual shareholder report (see back cover). The information for the fiscal years
or periods prior to August 31, 2022, was audited by a different independent
public accounting firm.
Neuberger Berman Small Cap
Growth Fund — Class R6
YEAR
ENDED AUGUST 31, |
|
2019(1) |
|
|
2020 |
|
|
2021 |
|
|
2022 |
|
|
2023 |
|
PER-SHARE
DATA ($) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data
apply to a single share throughout each year indicated. You can see what
the Fund earned (or lost), what it distributed to investors, and how its
share price changed. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price (NAV) at beginning of year |
|
|
43.68 |
|
|
|
37.59 |
|
|
|
44.71 |
|
|
|
56.74 |
|
|
|
38.04 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from investment operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss)(6) |
|
|
0.06 |
|
|
|
(0.15 |
) |
|
|
(0.31 |
) |
|
|
(0.18 |
) |
|
|
(0.10 |
) |
Net
gains (losses) — realized and unrealized |
|
|
0.88 |
|
|
|
8.79 |
|
|
|
12.92 |
|
|
|
(9.59 |
) |
|
|
0.74 |
|
Subtotal:
income (loss) from investment operations |
|
|
0.94 |
|
|
|
8.64 |
|
|
|
12.61 |
|
|
|
(9.77 |
) |
|
|
0.64 |
|
Minus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
to shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
gain distributions |
|
|
7.03 |
|
|
|
1.52 |
|
|
|
0.58 |
|
|
|
8.93 |
|
|
|
— |
|
Subtotal:
distributions to shareholders |
|
|
7.03 |
|
|
|
1.52 |
|
|
|
0.58 |
|
|
|
8.93 |
|
|
|
— |
|
Equals: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price (NAV) at end of year |
|
|
37.59 |
|
|
|
44.71 |
|
|
|
56.74 |
|
|
|
38.04 |
|
|
|
38.68 |
|
RATIOS
(% OF AVERAGE NET ASSETS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
ratios show the Fund’s expenses and net investment income (loss) — as they
actually are as well as how they would have been if certain expense
reimbursement and/or offset arrangements had not been in effect. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
expenses — actual |
|
|
0.81 |
(4) |
|
|
0.80 |
|
|
|
0.80 |
|
|
|
0.80 |
|
|
|
0.80 |
|
Gross
expenses(2) |
|
|
1.15 |
(4) |
|
|
1.08 |
|
|
|
0.99 |
|
|
|
1.05 |
|
|
|
1.03 |
|
Net
investment income (loss) — actual |
|
|
(0.15 |
)(4) |
|
|
(0.40 |
) |
|
|
(0.58 |
) |
|
|
(0.42 |
) |
|
|
(0.27 |
) |
OTHER
DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return shows how an investment in the Fund would have performed over each
year, assuming all distributions were reinvested. The turnover rate
reflects how actively the Fund bought and sold securities. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%)(3) |
|
|
6.35 |
(5) |
|
|
23.65 |
|
|
|
28.29 |
|
|
|
(19.78 |
) |
|
|
1.68 |
|
Net
assets at end of year (in millions of dollars) |
|
|
21.0 |
|
|
|
37.2 |
|
|
|
53.1 |
|
|
|
77.7 |
|
|
|
89.0 |
|
Portfolio
turnover rate (%) |
|
|
161 |
(5) |
|
|
128 |
|
|
|
127 |
|
|
|
121 |
|
|
|
129 |
|
(1) |
Period
from 9/7/2018 (beginning of operations) to 8/31/2019. |
(2) |
Shows
what this ratio would have been if there had been no expense
reimbursement. |
(3) |
Would
have been lower if the Manager had not reimbursed certain
expenses. |
(4) |
Annualized. |
(5) |
Not
Annualized. |
(6) |
Calculated
based on the average number of shares outstanding during the fiscal
period. |
Financial
Highlights
These financial highlights
describe the performance of the Fund’s Class R6 shares for the fiscal periods
indicated. Beginning with the fiscal year ended August 31, 2022, all
figures have been derived from the financial statements audited by Ernst &
Young LLP, the Fund’s independent registered public accounting firm. Their
report, along with full financial statements, appears in the Fund’s most recent
annual shareholder report (see back cover). The information for the fiscal years
or periods prior to August 31, 2022, was audited by a different independent
public accounting firm.
Neuberger Berman
Sustainable Equity Fund — Class R6
YEAR
ENDED AUGUST 31, |
|
2019 |
|
|
2020 |
|
|
2021 |
|
|
2022 |
|
|
2023 |
|
PER-SHARE
DATA ($) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data
apply to a single share throughout each year indicated. You can see what
the Fund earned (or lost), what it distributed to investors, and how its
share price changed. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price (NAV) at beginning of year |
|
|
41.83 |
|
|
|
37.01 |
|
|
|
39.41 |
|
|
|
49.79 |
|
|
|
38.80 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from investment operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss)(1) |
|
|
0.40 |
|
|
|
0.32 |
|
|
|
0.30 |
|
|
|
0.29 |
|
|
|
0.24 |
|
Net
gains (losses) — realized and unrealized |
|
|
(1.81 |
) |
|
|
5.58 |
|
|
|
12.82 |
|
|
|
(6.27 |
) |
|
|
5.03 |
|
Subtotal:
income (loss) from investment operations |
|
|
(1.41 |
) |
|
|
5.90 |
|
|
|
13.12 |
|
|
|
(5.98 |
) |
|
|
5.27 |
|
Minus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
to shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
dividends |
|
|
0.29 |
|
|
|
0.33 |
|
|
|
0.39 |
|
|
|
0.47 |
|
|
|
0.12 |
|
Capital
gain distributions |
|
|
3.12 |
|
|
|
3.17 |
|
|
|
2.35 |
|
|
|
4.54 |
|
|
|
3.50 |
|
Subtotal:
distributions to shareholders |
|
|
3.41 |
|
|
|
3.50 |
|
|
|
2.74 |
|
|
|
5.01 |
|
|
|
3.62 |
|
Equals: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price (NAV) at end of year |
|
|
37.01 |
|
|
|
39.41 |
|
|
|
49.79 |
|
|
|
38.80 |
|
|
|
40.45 |
|
RATIOS
(% OF AVERAGE NET ASSETS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
ratios show the Fund’s expenses and net investment income
(loss). |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
expenses — actual |
|
|
0.59 |
|
|
|
0.58 |
|
|
|
0.57 |
|
|
|
0.58 |
|
|
|
0.60 |
|
Gross
expenses |
|
|
0.59 |
|
|
|
0.58 |
|
|
|
0.57 |
|
|
|
0.58 |
|
|
|
0.60 |
|
Net
investment income (loss) — actual |
|
|
1.08 |
|
|
|
0.88 |
|
|
|
0.68 |
|
|
|
0.66 |
|
|
|
0.64 |
|
OTHER
DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return shows how an investment in the Fund would have performed over each
year, assuming all distributions were reinvested. The turnover rate
reflects how actively the Fund bought and sold securities. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%) |
|
|
(2.44 |
) |
|
|
16.48 |
|
|
|
34.82 |
|
|
|
(13.47 |
) |
|
|
15.03 |
|
Net
assets at end of year (in millions of dollars) |
|
|
238.1 |
|
|
|
233.6 |
|
|
|
264.3 |
|
|
|
174.4 |
|
|
|
111.1 |
|
Portfolio
turnover rate (%) |
|
|
20 |
|
|
|
21 |
|
|
|
16 |
|
|
|
14 |
|
|
|
20 |
|
(1) |
Calculated
based on the average number of shares outstanding during each fiscal
period. |
Your Investment
Maintaining Your Account
Class R6 shares described in
this prospectus generally are available only through financial intermediaries,
such as banks, brokerage firms, retirement plan administrators, and financial
advisers. For certain investors, shares of the Funds may be available directly
from Neuberger Berman BD LLC, the Funds’ Distributor.
Class R6 shares generally are
available only to 401(k) plans, 457 plans, employer-sponsored 403(b) plans,
profit-sharing and money purchase pension plans, health savings accounts,
defined benefit plans and non-qualified deferred compensation plans, provided
that shares are held on the books of a Fund through omnibus accounts (either at
the plan level or at the level of the financial intermediary), foundations and
endowment funds, charitable trusts, certain products managed by Neuberger Berman
or Funds in the Neuberger Berman family of funds and certain other institutional
investors if approved by the Distributor.
Class R6 shares generally are
not available to retail non-retirement accounts, traditional individual
retirement accounts (IRAs), Roth IRAs, Coverdell education savings accounts,
SEPs, SARSEPs, SIMPLE IRAs, or individual 403(b) plans.
Eligible retirement plans and
other investors generally may open an account and purchase Class R6 shares by
contacting a financial intermediary authorized to sell the Funds’ shares. Class
R6 shares may not be available through certain financial
intermediaries.
Plan participants who are
considering an investment in the Funds should contact their employer, retirement
plan administrator, or service agent that provides shareholder servicing, record
keeping, account maintenance or other services for their retirement plan (“Plan
Service Provider”) for details about the Funds that are available under their
retirement plan and the procedures for buying and selling shares.
The Funds do not impose
minimum purchase requirements for Class R6 shares. However, you should contact
your Plan Service Provider or financial intermediary to determine whether it
imposes minimum purchase requirements.
The Funds do not issue
certificates for shares.
For certain institutional
investors, shares of the Funds may be available for purchase directly from the
Distributor by regular, first class mail (Neuberger Berman Funds, P.O. Box
219189, Kansas City, MO 64121-9189), by express delivery, registered mail, or
certified mail (Neuberger Berman Funds, 430 West 7th Street, Suite
219189, Kansas City, MO 64105-1407) or by wire, fax, telephone or exchange.
Please call 800-866-6264 for an application and instructions.
We cannot accept cash, money
orders, starter checks, travelers checks, or other cash equivalents. We do
accept Bank Checks and Cashier’s Checks from U.S. Financial Institutions. You
will be responsible for any losses or fees resulting from a bad check; if
necessary, we may sell other shares belonging to you in order to cover these
losses. All checks must be made out to “Neuberger Berman Funds”; we cannot
accept checks made out to you or other parties and signed over to us.
If you bought shares directly
from the Distributor, to sell shares send a letter signed by all registered
owners; include your name, account number, the Fund name, the dollar amount or
number of shares you want to sell, and any other instructions. If by regular,
first class mail, send to Neuberger Berman Funds, P.O. Box 219189, Kansas City,
MO 64121-9189. If by express delivery, registered mail, or certified mail, send
to Neuberger Berman Funds, 430 West 7th Street, Suite 219189, Kansas
City, MO 64105-1407. Unless you instruct us otherwise, we will mail your
proceeds by check to the address of record, payable to the registered owner(s).
If you have a designated bank account on your application, you can request that
we wire the proceeds to this account. You can also request that we send the
proceeds to your designated bank account by electronic transfer (ACH). Please
also supply us with your e-mail address and daytime telephone number when you
write to us in the event we need to reach you.
You can move an investment
from one fund to a comparable class of another fund in the fund family through
an exchange of shares, or by electing to use your cash distributions from one
fund to purchase shares of the other fund. There are three things to remember
when making an exchange:
■ |
both accounts must have
the same registration |
■ |
you will need to
observe any eligibility requirements, including minimum investment and
minimum account balance requirements for the fund accounts
involved |
■ |
because an exchange is
treated as a sale (redemption) of the exchanged shares for federal income
tax purposes, consider any tax consequences before placing your
order. |
The exchange privilege can be
withdrawn from any investor that we believe is trying to “time the market” or is
otherwise making exchanges that we judge to be excessive. Frequent exchanges can
interfere with Fund management and affect costs and performance for other
shareholders. Contact your financial intermediary to see if it allows you to
take advantage of the fund exchange program and for its policies to effect an
exchange. Your ability to exchange to another fund in the fund family may be
limited by the availability of a given fund in your retirement plan as
determined by your Plan Service Provider.
Every buy or sell order will
be processed at the next share price to be calculated after the order has been
received in proper form. Purchase orders are deemed “received in proper form”
when the Funds’ transfer agent has received payment for the shares. Redemption
orders are deemed “received in proper form” when the Funds’ transfer agent has
received your order to sell Fund shares. In the case of certain institutional
investors, the Distributor will process purchase orders when received, on the
basis of a pre-existing arrangement to make payment by the following morning.
These policies apply to the financial intermediaries who invest in the Funds.
Please contact your financial intermediary for its policies.
The Funds typically expect to
meet redemption requests, under both normal and stressed market conditions, by
redeeming cash and cash equivalent portfolio holdings and/or selling portfolio
securities or other instruments. As described further above and in the Funds’
Statement of Additional Information, the Funds also reserve the right to redeem
an investor’s shares in kind (i.e., providing investors with portfolio
securities instead of cash), in whole or in part to meet redemption requests in
stressed market conditions and other appropriate circumstances.
The Funds reserve the right
to pay in kind for redemptions. A Fund also may elect to honor a shareholder’s
request for the Fund to pay in kind for redemptions in an attempt to manage any
liquidity needs, to manage and optimize its portfolio composition, to offset
transaction costs associated with portfolio transactions, and/or to more
efficiently manage its portfolio. The securities provided to investors in an
in-kind redemption may be a pro-rata portion of the Fund’s portfolio or a
non-pro-rata portion of the Fund’s portfolio selected by the Manager based upon
various circumstances and subject to the Fund’s policies and procedures and any
applicable laws or regulations. If the securities provided to investors in an
in-kind redemption are a non-pro-rata portion of the Fund’s portfolio, it will
only include securities that have been disclosed in the Fund’s most recent
public portfolio holdings disclosure.
Redemptions in kind may cause
you to incur transaction costs to the extent you dispose of the securities
redeemed in kind and the value of the securities redeemed in kind may decrease
between the time of redemption and the time of such sale. The Funds may also
borrow under any available line of credit and other available methods to meet
redemption requests in both normal and stressed market conditions and other
appropriate circumstances.
Under certain circumstances,
which may include normal and stressed market conditions, the Funds reserve the
right to:
■ |
suspend the offering of
shares |
■ |
reject any exchange or
purchase order |
■ |
suspend or reject
future purchase orders from any investor who has not provided timely
payment to settle a purchase order |
■ |
change, suspend, or
revoke the exchange privilege |
■ |
satisfy an order to
sell Fund shares with securities rather than cash |
■ |
suspend or postpone
investors’ ability to sell Fund shares or postpone payments on redemptions
for more than seven days, on days when trading on the New York Stock
Exchange (“Exchange”) is restricted, or as otherwise permitted by the
Securities and Exchange Commission (“SEC”) |
■ |
suspend or postpone
investors’ ability to sell Fund shares or postpone payments on redemptions
for more than seven days, on days when the Exchange is closed |
■ |
suspend or postpone
investors’ ability to sell Fund shares or postpone payments on redemptions
for more than seven days, on days when the Exchange closes early (e.g., on
the eve of a major holiday or because of a local emergency, such as a
blizzard) |
■ |
remain open and process
orders to purchase or sell Fund shares when the Exchange is
closed. |
The Funds reserve the right
to pay in kind for redemptions. The Funds do not redeem in kind under normal
circumstances, but would do so when the Manager or the Board of Trustees
determines that it is in the best interests of a Fund’s shareholders as a whole
or the transaction is otherwise effected in accordance with procedures adopted
by the Board of Trustees.
Proceeds from the sale of
shares — The proceeds from the shares you sell are typically sent out the
next business day after your order is executed, and nearly always within seven
days regardless of payment type. When you sell shares through your financial
intermediary, contact your provider to find out when proceeds will be sent to
you. There are two cases in which proceeds may be delayed beyond this
time:
■ |
in unusual
circumstances where the law allows additional time if needed |
■ |
if a check you wrote to
buy shares has not cleared by the time you sell those shares; clearance
may take up to 15 calendar days from the date of
purchase. |
If you think you may need to
sell shares soon after buying them, you can avoid the check clearing time by
investing by wire.
Uncashed checks — We
do not pay interest on uncashed checks from Fund distributions or the sale of
Fund shares. We are not responsible for checks after they are sent to you. After
allowing a reasonable time for delivery, please call us if you have not received
an expected check. While we cannot track a check, we may make arrangements for a
replacement. We may be required to transfer assets related to uncashed checks to
a state government under the state’s unclaimed or abandoned property
law.
Statements and
Confirmations — Please review your account statements and confirmations
carefully as soon as you receive them. You must contact us within 30 days if you
have any questions or notice any discrepancies. Otherwise, you may adversely
affect your right to make a claim about the transaction(s).
Important information
regarding unclaimed/abandoned property — If your financial intermediary (or,
if you bought your shares directly, the Distributor) is unable to locate you,
then it is required by law to determine whether your account(s) must be deemed
“unclaimed” or “abandoned.” Your financial intermediary (or the Distributor) is
required to transfer (or escheat) unclaimed or abandoned property to the
appropriate state government in accordance with state law. Your account(s) may
also be deemed “unclaimed” or “abandoned” and subsequently transferred to the
appropriate state government if no activity (as defined by that state) occurs
within the account(s) during the period of time specified by state law or if
checks related to the account(s) remain uncashed. Your last known address of
record determines which state has jurisdiction.
It is your responsibility to
ensure that your financial intermediary (or the Distributor) maintains a correct
address for your account(s). An incorrect address may cause your account
statements and other mailings to be returned as undeliverable. Neither the
Distributor nor a Fund nor its transfer agent will be liable to investors or
their representatives for good faith compliance with state unclaimed or
abandoned property (escheatment) laws. If you use a financial intermediary,
contact that provider regarding applicable state escheatment laws.
Financial
Intermediaries
Class R6 shares
described in this prospectus may be purchased through certain financial
intermediaries, such as banks, brokerage firms, retirement plan administrators,
and financial advisers.
The fees and policies
outlined in this prospectus are set by the Funds and by the Distributor.
However, most of the information you will need for managing your investment will
come from your financial intermediary. This includes information on how to buy
and sell Class R6 shares, investor services, and additional
policies.
In exchange for the
services it offers, your financial intermediary may charge fees that are in
addition to those described in this prospectus.
A Plan Service Provider
or an employee benefits office can provide plan participants with detailed
information on how to participate in the plan, elect a Fund as an investment
option, elect different investment options, alter the amounts contributed to the
plan, or change allocations among investment options. For questions about
participant accounts, plan participants should contact their Plan Service
Provider or their employee benefits office.
Financial intermediaries
may provide some of the shareholder servicing and account maintenance services
required by plan accounts and their plan participants, including transfers of
registration, dividend payee changes and generation of confirmation statements,
and may arrange for Plan Service Providers to provide other investment or
administrative services. Financial intermediaries may charge plans and plan
participants transaction fees and/or other additional amounts for such services.
Similarly, plans may charge plan participants for certain expenses, which are in
addition to those described in this prospectus. These fees and additional
amounts could reduce an investment return in Class R6 shares of the
Funds.
Information Required
from New Accounts
To help the U.S.
government fight the funding of terrorism and money laundering activities,
federal law requires all financial institutions to obtain, verify, and record
information that identifies each person who opens an account.
When you open an
account, we (which may include your financial intermediary acting on our behalf)
will require your name, address, date of birth, and social security number or
other taxpayer identification number. We may also require other identifying
documents. If we cannot verify the information you supply to us or if it is
incomplete, we may be required to return your funds or redeem your
account.
Share
Prices
Because Class R6 shares of
each Fund do not have a sales charge, the price you pay for each share of a Fund
is the Fund’s net asset value per share. Similarly, because the Funds do not
charge fees for selling shares, your Fund pays you the full share price (net
asset value) when you sell shares.
If you use a financial
intermediary, that provider may charge fees that are in addition to those
described in this prospectus.
The Funds are generally open
for business every day the Exchange is open. The Exchange is generally closed on
all national holidays and Good Friday; Fund shares will not be priced on those
days or other days on which the Exchange is scheduled to be closed. When the
Exchange is closed for unusual reasons, Fund shares will generally not be priced
although a Fund may decide to remain open and price Fund shares and in such a
case, the Fund would post a notice on www.nb.com.
Each Fund normally calculates
its share price on each day the Exchange is open once daily as of 4:00 P.M.,
Eastern time. In the event of an emergency or other disruption in trading on the
Exchange, a Fund’s share price would still normally be determined as of 4:00
P.M., Eastern time. In general, every buy or sell order you place will go
through at the next share price calculated after your order has been received in
proper form (see “Maintaining Your Account” for information on placing orders).
Check with your financial intermediary to find out by what time your order must
be received so that it can be processed the same day. Depending on when your
financial intermediary accepts orders, it is possible that a Fund’s share price
could change on days when you are unable to buy or sell shares.
Because foreign markets may
be open on days when U.S. markets are closed, the value of foreign securities
owned by a Fund could change on days when you cannot buy or sell Fund shares.
Remember, though, any purchase or sale takes place at the next share price
calculated after your order is received in proper form.
Share Price
Calculations
The net asset value per
share of Class R6 of a Fund is the total value of Fund assets attributable to
shares of that class minus the liabilities attributable to that class, divided
by the total number of shares outstanding for that class. Because the value of a
Fund’s portfolio securities changes every business day, its share price usually
changes as well.
A Fund generally values
its investments based upon their last reported sale prices, market quotations,
or estimates of value provided by an independent pricing service as of the time
as of which the Fund’s share price is calculated. Debt securities and certain
derivative instruments that do not trade on an exchange generally are valued by
one or more independent pricing services approved by the Manager on the basis of
market quotations and in the case of derivatives, market data about the
underlying investments. Short-term securities held by a Fund may be valued on
the basis of amortized cost, unless other factors indicate that amortized cost
is not an accurate estimate of the security’s value. Equity securities
(including securities issued by ETFs) and exchange-traded derivative instruments
held by a Fund generally are valued by one or more independent pricing services
approved by the Manager at the last reported sale price or official closing
price or, if there is no reported sale quoted on a principal exchange or market
for that security or official closing price, on the basis of market
quotations.
Investments in
non-exchange traded investment companies are valued using the respective fund’s
daily calculated net asset value per share. The prospectus for the fund explains
the circumstances under which the fund will use fair value pricing and the
effects of using fair value pricing.
If a valuation for a
security is not available from an independent pricing service or if the Manager
believes in good faith that the valuation does not reflect the amount a Fund
would receive on a current sale of that security, the Fund seeks to obtain
quotations from brokers or dealers. If such quotations are not readily
available, the Fund may use a fair value estimate made according to methods
approved by the Manager. Pursuant to Rule 2a-5 under the Investment Company
Act of 1940, as amended, the Board of Trustees designated the Manager as the
Fund’s valuation designee. As the Fund’s
valuation designee, the
Manager is responsible for determining fair value in good faith for any and all
Fund investments. A Fund may also use these methods to value certain types of
illiquid securities. Fair value pricing generally will be used if the market in
which a portfolio security trades closes early or if trading in a particular
security was halted during the day and did not resume prior to the time as of
which a Fund’s share price is calculated.
A Fund may also fair
value securities that trade in a foreign market if significant events that
appear likely to affect the value of those securities occur between the time the
foreign market closes and the time as of which the Fund’s share price is
calculated. Significant events may include (1) corporate actions or
announcements that affect a single issuer, (2) governmental actions that affect
securities in one sector, country or region, (3) natural disasters or armed
conflicts that affect a country or region, or (4) significant domestic or
foreign market fluctuations.
For certain foreign
assets, after the relevant foreign markets have closed, a third-party vendor
supplies evaluated, systematic fair value pricing based upon analysis of
historical correlation of multiple factors. In the case of both foreign equity
and foreign income securities, in the absence of precise information about the
market values of these foreign securities as of the time as of which a Fund’s
share price is calculated, the Manager has determined on the basis of available
data that prices adjusted or evaluated in this way are likely to be closer to
the prices a Fund could realize on a current sale than are the prices of those
securities established at the close of the foreign markets in which the
securities primarily trade. Please see the Funds’ Statement of Additional
Information for additional detail about the Funds’ fair valuation
practices.
The effect of using fair
value pricing is that a portfolio security will be priced based on the
subjective judgment of the Manager, operating under procedures approved by the
Manager, instead of being priced using valuations from an independent pricing
service. Fair value pricing can help to protect a Fund by reducing arbitrage
opportunities available to short-term traders, but there is no assurance that
fair value pricing will completely prevent dilution of a Fund’s net asset value
by such traders.
Trading in securities on
many foreign exchanges is normally completed before the Fund calculates its net
asset value. In addition, foreign markets may be open on days when U.S. markets
are closed. As a result, the value of foreign securities owned by the Fund could
change at times or on days when the Fund’s net asset value is not calculated,
when Fund shares do not trade, and when sales and redemptions of Fund shares do
not occur.
Distributions
and Taxes
Distributions — Each
Fund pays out to its shareholders any net investment income and net realized
capital and foreign currency gains. Ordinarily, each Fund makes any
distributions once a year (usually in December), except that Real Estate Fund
typically distributes any net investment income quarterly. Gains from foreign
currency transactions, if any, are normally distributed in December. A Fund may
make additional distributions, if necessary, to avoid federal income or excise
taxes.
Unless you designate
otherwise, your distributions from a Fund will be reinvested in additional Class
R6 shares of the Fund. However, if you prefer, you may receive all distributions
in cash or reinvest capital gain distributions but receive income dividends in
cash. Distributions taken in cash can be sent to you by check or by electronic
transfer to a designated bank account or invested in Class R6 shares of another
fund in the fund family with the same account registration. To take advantage of
one of these options, please indicate your choice on your application or contact
a Fund in writing or by phone if you bought shares directly. If you use a
financial intermediary, you must consult it about whether your income dividends
and capital gain distributions from a Fund will be reinvested in additional
Class R6 shares of the Fund or paid to you in cash.
How distributions are
taxed — Except for tax-advantaged retirement plans and other tax-exempt
investors (collectively, “exempt investors”) and except as noted in the next
paragraph, all Fund distributions you receive are generally taxable to you,
regardless of whether you take them in cash or reinvest them in additional Fund
shares.
Fund distributions to IRAs,
Roth IRAs, and qualified retirement plans generally are tax-free. Eventual
withdrawals from a Roth IRA also may be tax-free, while withdrawals from other
retirement plans and accounts generally are subject to federal income
tax.
Distributions generally are
taxable to shareholders other than exempt investors in the year they are
received. In some cases, however, distributions received in January are treated
for federal income tax purposes as if they had been paid the previous
December 31. Your tax statement (see “Taxes and You”) will help clarify
this for you.
Distributions of net
investment income and the excess of net short-term capital gain over net
long-term capital loss (“dividends”) are taxed as ordinary income. However, for
individual and certain other non-corporate shareholders (each, an “individual
shareholder”) who satisfy certain holding period and other restrictions with
respect to their Fund shares on which the dividends
are paid, a Fund’s dividends
attributable to “qualified dividend income” (generally, dividends the Fund
receives on stock of most U.S. and certain foreign corporations with respect to
which it satisfies those restrictions) are subject to maximum federal income tax
rates that are lower than the maximum rates for ordinary income (“lower maximum
rates”).
Distributions of net capital
gain (i.e., the excess of net long-term capital gain over net short-term capital
loss) are taxed as long-term capital gain and for individual shareholders are
subject to the lower maximum rates. The tax treatment of capital gain
distributions from a Fund depends on how long the Fund held the securities it
sold that generated the gain, not on when you bought your shares of the Fund or
whether you reinvested your distributions.
If, for any taxable year, a
Fund distributes an amount that exceeds the sum of its investment company
taxable income plus net capital gain for that year — which might result from,
among other things, the difference between book and tax accounting treatment of
certain derivatives and foreign currency transactions — that excess generally
will not be taxable (a so-called “return of capital”), which will reduce your
tax basis in your Fund shares. To the extent that excess is greater than your
tax basis, it will be treated as gain from a redemption of your shares (taxed as
described below).
Shareholders should review
any notice that accompanies a payment of dividends or other distributions to
determine whether any portion of the payment represents a return of capital
rather than a distribution of a Fund’s net income and/or realized
gains.
How share transactions are
taxed — When you sell (redeem) or exchange Fund shares, you generally will
realize a taxable gain or loss. An exception, once again, applies to exempt
investors. For individual shareholders, any capital gain recognized on a
redemption or exchange of Fund shares that have been held for more than one year
will qualify for the lower maximum rates.
Additional tax — An
individual shareholder’s distributions from a Fund and net gains recognized on
redemptions and exchanges of Fund shares are subject to a 3.8% federal tax on
the lesser of (1) the individual’s “net investment income” (which generally
includes distributions from a Fund and net gains from the disposition of Fund
shares) or (2) the excess of the individual’s “modified adjusted gross income”
over a specified threshold amount. This tax is in addition to any other taxes
due on that income. You should consult your own tax professional regarding the
effect, if any, this tax may have on your investment in Fund shares.
Taxes and
You
The taxes you actually
owe on Fund distributions and share transactions can vary with many factors,
such as your marginal tax bracket, how long you held your shares and, if you are
an individual shareholder, whether you owe federal alternative minimum
tax.
How can you figure out
your tax liability on Fund distributions and share transactions? One helpful
tool is the tax statement that we or your financial intermediary sends you after
the end of each calendar year. It details the distributions you received during
the past year and shows their tax status. That statement, or a separate
statement from us or your financial intermediary, also covers your share
transactions.
Most importantly,
consult your tax professional. Everyone’s tax situation is different, and your
tax professional should be able to help you answer any questions you may
have.
Backup
Withholding
A Fund is required to
withhold at the backup withholding rate from the money you are otherwise
entitled to receive from its distributions and redemption proceeds (regardless
of whether you realized a gain or loss) if you are an individual shareholder who
fails to provide a correct taxpayer identification number to the Fund.
Withholding at that rate also is required from a Fund’s distributions to which
you are otherwise entitled if you are an individual shareholder and the Internal
Revenue Service tells us that you are subject to backup withholding (1) for
failing to properly report the receipt of interest or dividend income or (2) for
any other reason.
If you use a financial
intermediary, you must supply your signed taxpayer identification number form
(generally, Form W-9) to your financial intermediary and it must supply its
taxpayer identification number to us, in order to avoid backup
withholding.
Buying Shares Before a
Distribution
The money a Fund earns,
either as net investment income or as net realized capital gains, is reflected
in its share price until it distributes the money. At that time, the amount of
the distribution is deducted from the share price. Because of this, if you buy
shares of a Fund just before it makes such a distribution, you will end up
getting some of your
investment back as a
taxable distribution. You can avoid this situation by waiting to invest until
after the record date for the distribution.
Generally, if you are an
exempt investor, there are no current tax consequences to you from
distributions.
Basis Determination and
Reporting
Your basis in Fund
shares that you acquired or acquire after December 31, 2011 (collectively,
“Covered Shares”), will be determined in accordance with the Funds’ default
basis determination method, which is average cost basis, unless you
affirmatively elect in writing (which may be electronic) to use a different
basis determination method acceptable to the Internal Revenue Service. The basis
determination method may not be changed with respect to a redemption (including
a redemption that is part of an exchange) of Covered Shares after the settlement
date of the redemption. A Fund must report to the Internal Revenue Service and
furnish to its shareholders the basis information for Covered Shares. See
“Additional Tax Information” in the Statement of Additional Information for more
information about the rules regarding basis determination and a Fund’s reporting
obligation. You should consult with your tax professional to determine the best
basis determination method for your tax situation and to obtain more information
about how the basis determination and reporting rules apply to
you.
Market Timing Policy
Frequent purchases, exchanges
and redemptions of Fund shares (“market-timing activities”) can interfere with
effective Fund management and adversely affect Fund performance in various ways,
including by requiring a portfolio manager to liquidate portfolio holdings at a
disadvantageous time or price, by increasing costs (such as brokerage costs) to
a Fund by requiring a portfolio manager to effect more frequent purchases and
sales of portfolio securities, and possibly by requiring a portfolio manager to
keep a larger portion of Fund assets in cash, all of which could adversely
affect the interests of long-term shareholders. To discourage market-timing
activities by Fund shareholders, the Board of Trustees has adopted market-timing
policies and has approved the procedures of the principal underwriter for
implementing those policies. As described earlier in this prospectus, pursuant
to such policies, the exchange privilege can be withdrawn from any investor that
is believed to be “timing the market” or is otherwise making exchanges judged to
be excessive. In furtherance of these policies, under certain circumstances, the
Funds reserve the right to reject any exchange or purchase order, or change,
suspend or revoke the exchange privilege.
The Manager applies the
Funds’ policies and procedures with respect to market-timing activities by
monitoring trading activity in the Funds, identifying excessive trading
patterns, and warning or prohibiting shareholders who trade excessively from
making further purchases or exchanges of Fund shares. These policies and
procedures are applied consistently to all shareholders. Although the Funds make
efforts to monitor for market-timing activities, the ability of the Funds to
monitor trades that are placed by the underlying shareholders of omnibus
accounts maintained by brokers, retirement plan accounts and other approved
financial intermediaries may be limited in those instances in which the
financial intermediary maintains the underlying shareholder accounts.
Accordingly, there can be no assurance that the Funds will be able to eliminate
all market-timing activities.
Portfolio Holdings Policy
A description of the Funds’
policies and procedures with respect to the disclosure of the Funds’ portfolio
holdings is available in the Funds’ Statement of Additional
Information.
The complete portfolio
holdings for each Fund are available at www.nb.com/holdings (click on the tab
with the name of the relevant Fund). The complete portfolio holdings for each
Fund (except Genesis Fund and Large Cap Value Fund) are generally posted 15-30
days after each month-end. The complete portfolio holdings for Genesis Fund and
Large Cap Value Fund are generally posted 15-30 days after the end of each
calendar quarter.
Each Fund’s (except Genesis
Fund’s and Large Cap Value Fund’s) complete portfolio holdings will remain
available at this website until the subsequent month-end holdings have been
posted. Genesis Fund’s and Large Cap Value Fund’s complete portfolio holdings
will remain available at this website until the subsequent quarter-end holdings
have been posted. Complete portfolio holdings for the Funds will also be
available in reports on Form N-PORT and Form N-CSR filed with the SEC.
Historical portfolio holdings are available upon request.
Generally, no earlier than
five business days after month-end, a Fund may publicly disclose via various
shareholder and public communications, such as portfolio manager commentaries,
fact sheets or other marketing materials, which will be publicly available at
www.nb.com, certain portfolio characteristics and partial information concerning
portfolio holdings for the month or quarter as of month-end or quarter-end, as
applicable, including but not limited to: up to the top 10 holdings of the Fund
(if the
Fund engages in short
selling, it may also disclose up to the top 10 short positions); up to the top
10 holdings that contributed to and/or detracted from performance or were the
best and/or worst performers; sector breakdowns or changes to portfolio
composition (e.g., buys and sells). This information will typically remain
available at this website until information for the subsequent month or quarter,
as applicable, has been posted; however, to comply with Rule 30e-3 under
the Investment Company Act of 1940, as amended, quarter-end information may be
retained on this website for each Fund’s previous fiscal year. A Fund may also
post intra-month updates to holdings and certain portfolio characteristics to
www.nb.com. Any such intra-month update would be in addition to and not in lieu
of the holdings disclosure policies described above.
Fund Structure
Each Fund offers one or more
classes of shares that have identical investment programs, but may have
different fee waivers and different arrangements for distribution and
shareholder servicing and, consequently, different expenses. Shares of a class
to which a fee waiver applies may not be available to all investors in a Fund.
Rather, they will be made available to investors meeting eligibility criteria
outlined in the Prospectuses for such share classes. This prospectus relates
solely to the Class R6 shares of the Funds.
NEUBERGER
BERMAN EQUITY FUNDS
Class R6
Shares
If you would like further
details on these Funds, you can request a free copy of the following
documents:
Shareholder Reports and
Form N-CSR. The shareholder reports and Form N-CSR, which includes financial
statements, offer information about each Fund, including:
■ |
a discussion by the
Portfolio Managers about strategies and market conditions that
significantly affected the Fund’s performance during the last fiscal
year |
■ |
Fund performance data
and financial statements |
■ |
portfolio
holdings. |
Statement of Additional
Information (SAI). The SAI contains more comprehensive information on each
Fund, including:
■ |
various types of
securities and practices, and their risks |
■ |
investment limitations
and additional policies |
■ |
information about the
Fund’s management and business structure. |
The SAI is hereby
incorporated by reference into this prospectus, making it legally part of the
prospectus.
Investment Manager:
Neuberger Berman Investment Advisers LLC
Obtaining
Information
You can obtain a shareholder
report, SAI, and other information such as financial statements from your
financial intermediary, or from:
Neuberger Berman Investment
Advisers LLC
1290 Avenue of the Americas
New York, NY
10104
877-628-2583
Website: www.nb.com
Reports and other
information about the Funds are available on the EDGAR Database on the SEC’s
website at http://www.sec.gov, and copies of this information may be obtained,
after paying a duplicating fee, by electronic request at the following e-mail
address: [email protected].
Each
Fund’s current net asset value per share is made available at:
http://www.nb.com/performance.
The “Neuberger
Berman” name and logo and “Neuberger Berman Investment Advisers LLC” are
registered service marks of Neuberger Berman Group LLC. The individual Fund
names in this prospectus are either service marks or registered service marks of
Neuberger Berman Investment Advisers LLC. ©2023 Neuberger Berman BD LLC,
distributor. All rights reserved.
SEC File
Number: 811-00582
N0011 12/23