Fund
Summaries
Neuberger
Berman Carbon Transition Infrastructure ETF
____
Shares (TBD)
GOAL
The
Fund seeks long term capital appreciation.
Fees
and Expenses
The
table below describes the fees and expenses that you pay if you buy, hold and
sell shares of the Fund (“Shares”). Investors may pay other fees, such as
brokerage commissions and other fees to financial intermediaries on their
purchases and sales of Shares, 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 |
|
Other
expenses |
|
Total
annual operating expenses |
|
Expense
Example
This
example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other funds. This example does not take into account
brokerage commissions that you pay when purchasing or selling Shares.
The
example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your Shares at the end of those periods. The
example also assumes that your investment has a 5% annual return and that the
Fund’s operating expenses remain the same. Although your actual costs may be
higher or lower, based on these assumptions, your costs would be:
|
1
Year |
3
Years |
5
Years |
10
Years |
|
|
|
|
|
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.
Principal
Investment Strategies
Under normal
market conditions, the Fund will invest at least 80% of its total assets in
equity securities issued by U.S. and foreign (non-U.S.) companies, including
companies located in emerging markets, of any market capitalization, that are
relevant to the theme of investing in “Carbon Transition Infrastructure.” The
Fund considers “Carbon Transition Infrastructure” companies to be those
companies which have exposure to infrastructure that will be required to, or
will enable other entities to, reduce greenhouse gas emissions. The Portfolio
Managers seek to invest in companies that they identify as focused on (i)
low-carbon resources (i.e., issuers focused on producing renewable energy, such
as solar, wind, geothermal, and green hydrogen, and the related storage of these
energies) and (ii) electrification (i.e., issuers that help enable the
replacement of technologies that use higher carbon emitting fuels with those
that use low-carbon resources as a source of energy, including those that
support smart grid and electric vehicle charging solutions as well as
electricity transmission and distribution that help expand usage of low-carbon
solutions). The Portfolio Managers will also seek to invest in issuers across
sectors that they identify as transition engagement opportunities (i.e., issuers
that are transitioning their business model, products or services along a
decarbonization pathway but may not yet be fully aligned with net zero carbon
emissions1 or issuers that focus on lower carbon solutions as part of their
business activities, but may currently be a small portion of their business
model.)
Carbon
Transition Infrastructure companies may include companies operating in any
industry or sector. At times, the Portfolio Managers may emphasize certain
sectors that they believe will benefit from market or economic trends and such
sectors currently include, but are not limited to: industrials (e.g., electrical
equipment, machinery, construction), energy (e.g., natural gas transportation,
liquified natural gas exports), utilities (e.g., independent power, renewable
services and equipment suppliers, electric utilities, multi-utilities), and
materials (e.g., chemicals, construction materials). The Fund may also invest in
companies which have fossil fuel exposure (e.g., utilities with thermal coal
generation assets) but are transitioning their business models, products or
services along a decarbonization pathway but may not yet be fully aligned with
net zero carbon emissions. The sectors in which Carbon Transition Infrastructure
companies are found may change in the future, and the Fund’s focus may change
with it.
The Fund will
concentrate its investments in companies operating in one or more industries
within the electrical equipment, chemicals, electric utilities, independent
power and renewables, multi-utilities and construction and engineering groups of
industries. See “Investment Objectives, Policies and Limitations” in the SAI for
additional information regarding the Fund’s concentration policy.
Equity
securities in which the Fund may invest include common stocks, preferred stocks,
convertible securities, warrants, depositary receipts, exchange-traded funds,
and equity interests in real estate investment trusts (“REITs”), 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. While the Fund may invest in
companies of any market capitalization, the Fund typically invests in companies
that have market capitalization greater than $500 million at time of
purchase.
In selecting the
universe of companies that the Portfolio Managers believe are relevant to the
Fund’s investment theme, the Portfolio Managers seek to identify companies that
demonstrate certain economic characteristics, including: growth of earnings
and/or sales, increases in research and development budgets, and increases in
allocations to certain operating expenses related to the Carbon Transition
Infrastructure (e.g., sales, general and administrative, and recruiting
efforts).
The Portfolio
Managers will utilize disciplined, fundamental, bottom-up securities analysis to
identify those Carbon Transition Infrastructure companies within the Fund’s
investable universe that they believe are well-positioned to benefit from new
business models, products or services related to the transition to a
de-carbonized world. The Portfolio Managers will seek to identify such issuers
through a proprietary net zero alignment methodology which takes into
consideration available company disclosed data, third party data,
sector-specific considerations, and is supplemented with qualitative analysis
leveraging the analyst team’s significant sector and industry knowledge. The
Portfolio Managers also seek to identify Carbon Transition Infrastructure
companies with certain characteristics, including some or all of the following:
(i) stock prices which appear undervalued relative to long-term cash flow growth
potential; (ii) companies that are deemed industry leaders represented by high
market share, pricing power, or superior technology and/or business models
relative to peers or new entrants; (iii) companies that demonstrate potential
for significant improvement in their businesses (e.g., top line growth greater
than peers, margin expansion and/or increased cash flow generation); (iv) strong
financial characteristics, including growth, margins, and/or capital returns and
historic valuations on metrics such as price to cash flow, price to earnings or
price to book value; and (v) proven management track records. The Portfolio
Managers systematically and explicitly include material Environmental, Social
and Governance (ESG) risks and opportunities in investment analysis and
investment decisions for all securities. The Portfolio Managers conduct ongoing
proprietary ESG research, including proactive engagement on ESG issues. The
Portfolio Managers assess all securities in relation to their exposure to and
the management of material ESG risks.
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 may
engage in active and frequent trading of portfolio securities to seek to achieve
its investment objectives.
1 Net zero
carbon emissions refers to an equilibrium between the level of greenhouse gas
emissions emitted into the atmosphere relative to the level that is
removed.
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 environmental, social and
governance factors.
The
Fund is 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.