Neuberger
Berman Equity Funds
|
|
Investor
Class |
Neuberger
Berman Focus Fund |
|
NBSSX |
Neuberger
Berman Genesis Fund |
|
NBGNX |
Neuberger
Berman International Equity Fund |
|
NIQVX |
Neuberger
Berman Large Cap Growth Fund |
|
NGUAX |
Neuberger
Berman Large Cap Value Fund |
|
NPRTX |
Neuberger
Berman Mid Cap Growth Fund |
|
NMANX |
Neuberger
Berman Mid Cap Intrinsic Value Fund |
|
NBRVX |
Neuberger
Berman Small Cap Growth Fund |
|
NBMIX |
Neuberger
Berman Sustainable Equity Fund |
|
NBSRX |
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 Focus Fund
Investor
Class Shares (NBSSX)
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 |
|
0.13 |
Total
annual operating expenses |
|
0.92 |
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 |
Investor
Class |
|
$94 |
|
$293 |
|
$509 |
|
$1,131 |
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 78% of the average
value of its portfolio.
Principal Investment
Strategies
To pursue
its goal, the Fund invests in a concentrated portfolio, consisting mainly of
common stocks of companies of any size that are selected using a fundamental,
research driven approach.
Under normal
market conditions, the Fund typically holds a limited number of stocks of U.S.
and non-U.S. companies, including companies in emerging markets. Because of
this, the Fund may at times be substantially over- and under-weighted in certain
economic sectors.
The
Portfolio Managers, with the assistance of Neuberger Berman research analysts,
look for what they believe to be undervalued companies. Factors in identifying
these firms may include depressed valuations, a history of above-average
returns, an established market niche, 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 investing in a smaller number of stocks.
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 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 may
invest in depositary receipts.
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
Portfolio Managers follow a disciplined selling strategy and may sell a security
when it reaches a target valuation, 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.
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 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.
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.
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
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.
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
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.
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.
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 800-877-9700 for
updated performance information.
year-by-year % Returns as of 12/31 each
year
Years |
Returns |
2013 |
35.45% |
2014 |
10.51% |
2015 |
0.20% |
2016 |
7.01% |
2017 |
19.34% |
2018 |
-8.88% |
2019 |
28.37% |
2020 |
24.45% |
2021 |
20.28% |
2022 |
-31.74% |
Best
quarter: 2020-06-30Q2 2020 23.08%
Worst
quarter: 2022-06-30Q2 2022 -20.14%
Year to Date performance as
of: 9/30/2023 10.12%
average annual total % returns as of
12/31/22
Focus
Fund |
|
1
Year |
|
5
Years |
|
10
Years |
Return
Before Taxes |
|
-31.74 |
|
3.63 |
|
8.63 |
Return
After Taxes on Distributions |
|
-31.75 |
|
1.39 |
|
6.17 |
Return
After Taxes on Distributions and Sale of Fund Shares |
|
-18.79 |
|
2.83 |
|
6.66 |
MSCI All
Country World Index (Net) (reflects reinvested dividends net of
withholding taxes, but reflects no deduction for fees, expenses or
taxes) |
|
-18.36 |
|
5.23 |
|
7.98 |
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 Timothy Creedon, CFA (Managing Director of the Manager) and Hari
Ramanan (Managing Director of the Manager). They have managed the Fund since
2011 and 2019, respectively.
Buying
and Selling Shares
Investor
Class of the Fund is closed to new investors. Only certain investors are
allowed to purchase Investor Class shares of the Fund. See “Maintaining Your
Account” in the prospectus.
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, workplace retirement programs, and financial advisers. Contact any
investment provider authorized to sell the Fund’s shares.
For certain
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, exchange, or systematic
investment or withdrawal (call 800-877-9700 for instructions). See “Maintaining
Your Account” in the prospectus for instructions on buying and redeeming
(selling) shares directly.
The minimum
initial investment in Investor Class is $1,000. Additional investments can be as
little as $100. These minimums may be waived in certain cases.
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 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 Fund shares 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 over another investment.
Ask your investment provider or visit its website for more
information.
Neuberger
Berman Genesis Fund
Investor
Class Shares (NBGNX)
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 |
|
0.92 |
Distribution
and/or shareholder service (12b-1) fees |
|
None |
Other
expenses |
|
0.08 |
Total
annual operating expenses |
|
1.00 |
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 |
Investor
Class |
|
$102 |
|
$318 |
|
$552 |
|
$1,225 |
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.
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 800-877-9700 for
updated performance information.
year-by-year % Returns as of 12/31 each
year
Years |
Returns |
2013 |
36.99% |
2014 |
-0.22% |
2015 |
0.26% |
2016 |
18.14% |
2017 |
15.59% |
2018 |
-6.67% |
2019 |
29.44% |
2020 |
24.84% |
2021 |
18.17% |
2022 |
-19.25% |
Best
quarter: Q2 2020 24.83%
Worst
quarter: Q1 2020 -21.01%
Year to Date performance as
of: 9/30/2023 5.92%
average annual total % returns as of
12/31/22
Genesis
Fund |
|
1
Year |
|
5
Years |
|
10
Years |
Return
Before Taxes |
|
-19.25 |
|
7.55 |
|
10.41 |
Return
After Taxes on Distributions |
|
-21.15 |
|
5.49 |
|
7.75 |
Return
After Taxes on Distributions and Sale of Fund Shares |
|
-10.02 |
|
5.83 |
|
7.71 |
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, workplace retirement programs, and financial advisers. Contact any
investment provider authorized to sell the Fund’s shares.
For certain
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,
exchange, or
systematic investment or withdrawal (call 800-877-9700 for instructions). See
“Maintaining Your Account” in the prospectus for instructions on buying and
redeeming (selling) shares directly.
The minimum
initial investment in Investor Class is $1,000. Additional investments can be as
little as $100. These minimums may be waived in certain cases.
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 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 Fund shares 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 over another investment.
Ask your investment provider or visit its website for more
information.
Neuberger Berman International Equity Fund
Investor
Class Shares (NIQVX)
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 |
|
1.07 |
Distribution
and/or shareholder service (12b-1) fees |
|
None |
Other
expenses |
|
0.15 |
Total
annual operating expenses |
|
1.22 |
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 |
Investor
Class |
|
$124 |
|
$387 |
|
$670 |
|
$1,477 |
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 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
16
International Equity Fund
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.
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
17
International Equity Fund
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.
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.
18
International Equity Fund
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.
19
International Equity Fund
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 28, 2013, is that of the Fund’s Institutional
Class. Because Institutional Class has lower expenses than Investor Class, its
performance typically would have been better than that of Investor
Class.
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.
20
International Equity Fund
Past performance (before and
after taxes) is not a prediction of future results. Visit
www.nb.com
or call 800-877-9700 for
updated performance information.
year-by-year % Returns as of 12/31 each
year
Years |
Returns |
2013 |
17.80% |
2014 |
-2.12% |
2015 |
1.90% |
2016 |
-1.27% |
2017 |
27.36% |
2018 |
-16.65% |
2019 |
27.53% |
2020 |
13.57% |
2021 |
13.38% |
2022 |
-22.17% |
Best
quarter: Q2 2020 21.35%
Worst
quarter: Q1 2020 -23.35%
Year to Date performance as
of: 9/30/2023 3.14%
average annual total % returns as of
12/31/22
International Equity
Fund |
|
1
Year |
|
5
Years |
|
10
Years |
Return
Before Taxes |
|
-22.17 |
|
1.27 |
|
4.64 |
Return
After Taxes on Distributions |
|
-23.10 |
|
0.12 |
|
3.97 |
Return
After Taxes on Distributions and Sale of Fund Shares |
|
-12.47 |
|
1.08 |
|
3.77 |
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
Investor
Class of the Fund is closed to new investors. Only certain investors are
allowed to purchase Investor Class shares of the Fund. See “Maintaining Your
Account” in the prospectus.
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, workplace retirement programs, and financial advisers. Contact any
investment provider authorized to sell the Fund’s shares.
21
International Equity Fund
For certain
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, exchange, or systematic
investment or withdrawal (call 800-877-9700 for instructions). See “Maintaining
Your Account” in the prospectus for instructions on buying and redeeming
(selling) shares directly.
The minimum
initial investment in Investor Class is $1,000. Additional investments can be as
little as $100. These minimums may be waived in certain cases.
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 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 Fund shares 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 over another investment.
Ask your investment provider or visit its website for more
information.
22
International Equity Fund
Neuberger Berman Large Cap Growth Fund
Investor
Class Shares (NGUAX)
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 |
|
0.74 |
Distribution
and/or shareholder service (12b-1) fees |
|
None |
Other
expenses |
|
0.09 |
Total
annual operating expenses |
|
0.83 |
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 |
Investor
Class |
|
$85 |
|
$265 |
|
$460 |
|
$1,025 |
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 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 800-877-9700 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 |
36.61% |
2020 |
34.58% |
2021 |
27.61% |
2022 |
-24.34% |
Best
quarter: Q2 2020 25.19%
Worst
quarter: Q4 2018 -16.86%
Year to Date performance as
of: 9/30/2023 19.67%
average annual total % returns as of
12/31/22
Large Cap Growth
Fund |
|
1
Year |
|
5
Years |
|
10
Years |
Return
Before Taxes |
|
-24.34 |
|
10.56 |
|
12.56 |
Return
After Taxes on Distributions |
|
-25.43 |
|
8.23 |
|
9.93 |
Return
After Taxes on Distributions and Sale of Fund Shares |
|
-13.60 |
|
8.00 |
|
9.65 |
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
Investor
Class of the Fund is closed to new investors. Only certain investors are
allowed to purchase Investor Class shares of the Fund. See “Maintaining Your
Account” in the prospectus.
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, workplace retirement programs, and financial advisers. Contact any
investment provider authorized to sell the Fund’s shares.
For certain
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, exchange, or systematic
investment or withdrawal (call 800-877-9700 for instructions). See “Maintaining
Your Account” in the prospectus for instructions on buying and redeeming
(selling) shares directly.
The minimum
initial investment in Investor Class is $1,000. Additional investments can be as
little as $100. These minimums may be waived in certain cases.
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 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 Fund shares 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 over another investment.
Ask your investment provider or visit its website for more
information.
Neuberger
Berman Large Cap Value Fund
Investor
Class Shares (NPRTX)
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 |
|
0.68 |
Distribution
and/or shareholder service (12b-1) fees |
|
None |
Other
expenses |
|
0.08 |
Total
annual operating expenses |
|
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 |
Investor
Class |
|
$78 |
|
$243 |
|
$422 |
|
$942 |
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.
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 800-877-9700 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 |
23.94% |
2020 |
14.47% |
2021 |
28.12% |
2022 |
-1.22% |
Best
quarter: Q4 2020 28.65%
Worst
quarter: Q1 2020 -26.83%
Year to Date performance as
of: 9/30/2023 -5.31%
average annual total % returns as of
12/31/22
Large Cap Value
Fund |
|
1
Year |
|
5
Years |
|
10
Years |
Return
Before Taxes |
|
-1.22 |
|
12.21 |
|
12.71 |
Return
After Taxes on Distributions |
|
-1.59 |
|
10.83 |
|
10.41 |
Return
After Taxes on Distributions and Sale of Fund Shares |
|
-0.47 |
|
9.37 |
|
9.53 |
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
Investor
Class of the Fund is closed to new investors. Only certain investors are
allowed to purchase Investor Class shares of the Fund. See “Maintaining Your
Account” in the prospectus.
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, workplace retirement programs, and financial advisers. Contact any
investment provider authorized to sell the Fund’s shares.
For certain
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, exchange, or systematic
investment or withdrawal (call 800-877-9700 for instructions). See “Maintaining
Your Account” in the prospectus for instructions on buying and redeeming
(selling) shares directly.
The minimum
initial investment in Investor Class is $1,000. Additional investments can be as
little as $100. These minimums may be waived in certain cases.
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 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 Fund shares 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 over another investment.
Ask your investment provider or visit its website for more
information.
Neuberger Berman Mid Cap Growth Fund
Investor
Class Shares (NMANX)
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 |
|
0.75 |
Distribution
and/or shareholder service (12b-1) fees |
|
None |
Other
expenses |
|
0.11 |
Total
annual operating expenses |
|
0.86 |
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 |
Investor
Class |
|
$88 |
|
$274 |
|
$477 |
|
$1,061 |
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.
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 800-877-9700 for
updated performance information.
year-by-year % Returns as of 12/31 each
year
Years |
Returns |
2013 |
31.93% |
2014 |
7.75% |
2015 |
1.42% |
2016 |
4.71% |
2017 |
25.34% |
2018 |
-5.98% |
2019 |
33.56% |
2020 |
39.44% |
2021 |
12.70% |
2022 |
-28.73% |
Best
quarter: Q2 2020 30.24%
Worst
quarter: Q2 2022 -20.70%
Year to Date performance as
of: 9/30/2023 6.20%
average annual total % returns as of
12/31/22
Mid Cap Growth
Fund |
|
1
Year |
|
5
Years |
|
10
Years |
Return
Before Taxes |
|
-28.73 |
|
7.06 |
|
10.28 |
Return
After Taxes on Distributions |
|
-29.51 |
|
4.76 |
|
7.98 |
Return
After Taxes on Distributions and Sale of Fund Shares |
|
-16.44 |
|
5.59 |
|
8.06 |
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
Investor
Class of the Fund is closed to new investors. Only certain investors are
allowed to purchase Investor Class shares of the Fund. See “Maintaining Your
Account” in the prospectus.
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, workplace retirement programs, and financial advisers. Contact any
investment provider authorized to sell the Fund’s shares.
For certain
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, exchange, or systematic
investment or withdrawal (call 800-877-9700 for instructions). See “Maintaining
Your Account” in the prospectus for instructions on buying and redeeming
(selling) shares directly.
The minimum
initial investment in Investor Class is $1,000. Additional investments can be as
little as $100. These minimums may be waived in certain cases.
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 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 Fund shares 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 over another investment.
Ask your investment provider or visit its website for more
information.
Neuberger Berman Mid Cap Intrinsic Value
Fund
Investor
Class Shares (NBRVX)
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 |
|
0.81 |
Distribution
and/or shareholder service (12b-1) fees |
|
None |
Other
expenses |
|
0.70 |
Total
annual operating expenses |
|
1.51 |
Fee
waivers and/or expense reimbursement |
|
0.01 |
Total
annual operating expenses after fee waivers and/or expense
reimbursement1 |
|
1.50 |
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 |
Investor
Class |
|
$153 |
|
$474 |
|
$821 |
|
$1,799 |
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.
43
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.
44
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
45
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
46
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.
47
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.
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 800-877-9700 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 |
17.21% |
2020 |
-4.29% |
2021 |
32.67% |
2022 |
-9.73% |
Best
quarter: Q4 2020 28.35%
Worst
quarter: Q1 2020 -40.56%
Year to Date performance as
of: 9/30/2023 0.09%
48
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 |
|
-9.73 |
|
2.74 |
|
8.41 |
Return
After Taxes on Distributions |
|
-9.92 |
|
2.13 |
|
7.20 |
Return
After Taxes on Distributions and Sale of Fund Shares |
|
-5.63 |
|
1.96 |
|
6.55 |
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
Investor
Class of the Fund is closed to new investors. Only certain investors are
allowed to purchase Investor Class shares of the Fund. See “Maintaining Your
Account” in the prospectus.
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, workplace retirement programs, and financial advisers. Contact any
investment provider authorized to sell the Fund’s shares.
For certain
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, exchange, or systematic
investment or withdrawal (call 800-877-9700 for instructions). See “Maintaining
Your Account” in the prospectus for instructions on buying and redeeming
(selling) shares directly.
The minimum
initial investment in Investor Class is $1,000. Additional investments can be as
little as $100. These minimums may be waived in certain cases.
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 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 Fund shares 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 over another investment.
Ask your investment provider or visit its website for more
information.
49
Mid Cap Intrinsic Value Fund
Neuberger Berman Small Cap Growth Fund
Investor
Class Shares (NBMIX)
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 |
|
1.10 |
Distribution
and/or shareholder service (12b-1) fees |
|
None |
Other
expenses |
|
0.22 |
Total
annual operating expenses |
|
1.32 |
Fee
waivers and/or expense reimbursement |
|
0.01 |
Total
annual operating expenses after fee waivers and/or expense
reimbursement1 |
|
1.31 |
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 |
Investor
Class |
|
$133 |
|
$415 |
|
$720 |
|
$1,587 |
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.
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 800-877-9700 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 |
5.56% |
2019 |
34.50% |
2020 |
42.81% |
2021 |
4.42% |
2022 |
-24.43% |
Best
quarter: Q2 2020 30.34%
Worst
quarter: Q1 2020 -20.60%
Year to Date performance as
of: 9/30/2023 -0.17%
average annual total % returns as of
12/31/22
Small Cap Growth
Fund |
|
1
Year |
|
5
Years |
|
10
Years |
Return
Before Taxes |
|
-24.43 |
|
9.86 |
|
12.12 |
Return
After Taxes on Distributions |
|
-24.43 |
|
6.79 |
|
10.30 |
Return
After Taxes on Distributions and Sale of Fund Shares |
|
-14.46 |
|
6.77 |
|
9.43 |
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
Investor
Class of the Fund is closed to new investors. Only certain investors are
allowed to purchase Investor Class shares of the Fund. See “Maintaining Your
Account” in the prospectus.
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, workplace retirement programs, and financial advisers. Contact any
investment provider authorized to sell the Fund’s shares.
For certain
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, exchange, or systematic
investment or withdrawal (call 800-877-9700 for instructions). See “Maintaining
Your Account” in the prospectus for instructions on buying and redeeming
(selling) shares directly.
The minimum
initial investment in Investor Class is $1,000. Additional investments can be as
little as $100. These minimums may be waived in certain cases.
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 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 Fund shares 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 over another investment.
Ask your investment provider or visit its website for more
information.
Neuberger Berman Sustainable Equity Fund
Investor
Class Shares (NBSRX)
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 |
|
0.76 |
Distribution
and/or shareholder service (12b-1) fees |
|
None |
Other
expenses |
|
0.11 |
Total
annual operating expenses |
|
0.87 |
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 |
Investor
Class |
|
$89 |
|
$278 |
|
$482 |
|
$1,073 |
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.
56
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.
57
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.
58
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
59
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.
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 800-877-9700 for
updated performance information.
year-by-year % Returns as of 12/31 each
year
Years |
Returns |
2013 |
38.20% |
2014 |
10.50% |
2015 |
-0.41% |
2016 |
10.10% |
2017 |
18.57% |
2018 |
-5.83% |
2019 |
25.87% |
2020 |
19.38% |
2021 |
23.43% |
2022 |
-18.61% |
Best
quarter: Q2 2020 19.28%
Worst
quarter: Q1 2020 -21.54%
Year to Date performance as
of: 9/30/2023 11.58%
60
Sustainable Equity Fund
average annual total % returns as of
12/31/22
Sustainable Equity
Fund |
|
1
Year |
|
5
Years |
|
10
Years |
Return
Before Taxes |
|
-18.61 |
|
7.29 |
|
10.93 |
Return
After Taxes on Distributions |
|
-20.37 |
|
5.41 |
|
8.93 |
Return
After Taxes on Distributions and Sale of Fund Shares |
|
-9.74 |
|
5.62 |
|
8.69 |
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
Investor
Class of the Fund is closed to new investors. Only certain investors are
allowed to purchase Investor Class shares of the Fund. See “Maintaining Your
Account” in the prospectus.
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, workplace retirement programs, and financial advisers. Contact any
investment provider authorized to sell the Fund’s shares.
For certain
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, exchange, or systematic
investment or withdrawal (call 800-877-9700 for instructions). See “Maintaining
Your Account” in the prospectus for instructions on buying and redeeming
(selling) shares directly.
The minimum
initial investment in Investor Class is $1,000. Additional investments can be as
little as $100. These minimums may be waived in certain cases.
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 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 Fund shares 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 over another investment.
Ask your investment provider or visit its website for more
information.
61
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 MSCI
All Country World Index (Net) is a free float-adjusted, market
capitalization-weighted index that is designed to measure the equity market
performance of developed and emerging markets. The index consists of 47 country
indexes comprising 23 developed and 24 emerging market country indexes. The
developed market country indexes included are: Australia, Austria, Belgium,
Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy,
Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden,
Switzerland, the United Kingdom and the United States. The emerging market
country indexes included are: 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 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
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 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.
Neuberger
Berman Focus 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 Investor Class.
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
0.92% of average daily net assets for Investor Class.
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 0.93% of average daily net assets, after voluntary waiver, for
Investor Class.
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. From October 22, 2019 until
November 21, 2022, 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 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 0.74% of average daily net assets for Investor Class.
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 0.68% of average daily net assets for Investor Class.
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 0.75% of average daily net assets for Investor Class.
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 0.81% of average daily net assets for Investor Class.
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 1.10% of average daily net assets for Investor Class.
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 0.76% of average daily net assets for Investor Class.
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 Focus Fund
Timothy
Creedon, CFA, is a Managing Director of the Manager. Mr. Creedon joined the
firm in 2005 and has been a Portfolio Manager of the Fund since 2011. He is the
Director of Research for the Global Equity Research Department.
Hari
Ramanan is a Managing Director of the Manager. Mr. Ramanan joined the firm
in 2019 and has been a Portfolio Manager of the Fund since September 2019.
Mr. Ramanan is a Portfolio Manager and CIO of Research Funds at Neuberger Berman
and leads the investing activities for the firm’s research-centric core and
thematic funds. Prior to joining the firm, he was Managing Partner of Valarc
Holdings since 2014.
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 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 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 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 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 Investor Class
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 Focus Fund — Investor Class
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 |
|
|
28.69 |
|
|
|
25.74 |
|
|
|
28.76 |
|
|
|
35.97 |
|
|
|
21.08 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from investment operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss)(1) |
|
|
0.13 |
|
|
|
0.03 |
|
|
|
0.01 |
|
|
|
(0.00 |
) |
|
|
0.09 |
|
Net
gains (losses) — realized and unrealized |
|
|
(1.06 |
) |
|
|
6.22 |
|
|
|
8.80 |
|
|
|
(9.12 |
) |
|
|
2.40 |
|
Subtotal:
income (loss) from investment operations |
|
|
(0.93 |
) |
|
|
6.25 |
|
|
|
8.81 |
|
|
|
(9.12 |
) |
|
|
2.49 |
|
Minus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
to shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
dividends |
|
|
0.10 |
|
|
|
0.17 |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
Capital
gain distributions |
|
|
1.92 |
|
|
|
3.06 |
|
|
|
1.60 |
|
|
|
5.77 |
|
|
|
— |
|
Subtotal:
distributions to shareholders |
|
|
2.02 |
|
|
|
3.23 |
|
|
|
1.60 |
|
|
|
5.77 |
|
|
|
0.01 |
|
Equals: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price (NAV) at end of year |
|
|
25.74 |
|
|
|
28.76 |
|
|
|
35.97 |
|
|
|
21.08 |
|
|
|
23.56 |
|
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 offset
arrangements had not been in effect. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
expenses — actual |
|
|
0.92 |
|
|
|
0.92 |
|
|
|
0.88 |
|
|
|
0.89 |
|
|
|
0.91 |
|
Gross
expenses |
|
|
0.92 |
|
|
|
0.92 |
|
|
|
0.88 |
|
|
|
0.89 |
|
|
|
0.91 |
|
Net
investment income (loss) — actual |
|
|
0.50 |
|
|
|
0.14 |
|
|
|
0.03 |
|
|
|
(0.00 |
) |
|
|
0.43 |
|
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 (%) |
|
|
(2.35 |
) |
|
|
26.17 |
|
|
|
32.06 |
|
|
|
(29.67 |
) |
|
|
11.82 |
|
Net
assets at end of year (in millions of dollars) |
|
|
617.6 |
|
|
|
700.6 |
|
|
|
865.3 |
|
|
|
553.0 |
|
|
|
567.7 |
|
Portfolio
turnover rate (%) |
|
|
20 |
|
|
|
130 |
|
|
|
123 |
|
|
|
176 |
|
|
|
78 |
|
| (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 Investor Class
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 — Investor Class
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 |
|
|
65.27 |
|
|
|
58.54 |
|
|
|
62.74 |
|
|
|
80.18 |
|
|
|
61.48 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from investment operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss)(1) |
|
|
0.05 |
|
|
|
0.02 |
|
|
|
(0.11 |
) |
|
|
(0.08 |
) |
|
|
0.06 |
|
Net
gains (losses) — realized and unrealized |
|
|
(0.91 |
) |
|
|
7.59 |
|
|
|
20.25 |
|
|
|
(10.47 |
) |
|
|
5.22 |
|
Subtotal:
income (loss) from investment operations |
|
|
(0.86 |
) |
|
|
7.61 |
|
|
|
20.14 |
|
|
|
(10.55 |
) |
|
|
5.28 |
|
Minus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
to shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
dividends |
|
|
0.03 |
|
|
|
0.03 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Capital
gain distributions |
|
|
5.84 |
|
|
|
3.38 |
|
|
|
2.70 |
|
|
|
8.15 |
|
|
|
6.01 |
|
Subtotal:
distributions to shareholders |
|
|
5.87 |
|
|
|
3.41 |
|
|
|
2.70 |
|
|
|
8.15 |
|
|
|
6.01 |
|
Equals: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price (NAV) at end of year |
|
|
58.54 |
|
|
|
62.74 |
|
|
|
80.18 |
|
|
|
61.48 |
|
|
|
60.75 |
|
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 |
|
|
1.01 |
|
|
|
1.01 |
|
|
|
0.99 |
|
|
|
0.99 |
|
|
|
0.99 |
|
Gross
expenses |
|
|
1.01 |
|
|
|
1.01 |
|
|
|
0.99 |
|
|
|
0.99 |
|
|
|
0.99 |
|
Net
investment income (loss) — actual |
|
|
0.08 |
|
|
|
0.03 |
|
|
|
(0.15 |
) |
|
|
(0.11 |
) |
|
|
0.10 |
|
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 (%) |
|
|
0.53 |
|
|
|
13.48 |
|
|
|
32.89 |
|
|
|
(14.63 |
) |
|
|
9.64 |
|
Net
assets at end of year (in millions of dollars) |
|
|
1,649.3 |
|
|
|
1,677.3 |
|
|
|
2,106.8 |
|
|
|
1,664.6 |
|
|
|
1,663.4 |
|
Portfolio
turnover rate (%) |
|
|
14 |
|
|
|
11 |
|
|
|
12 |
|
|
|
12 |
|
|
|
17 |
|
| (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 Investor Class
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 — Investor Class
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 |
|
|
13.16 |
|
|
|
12.47 |
|
|
|
14.04 |
|
|
|
17.18 |
|
|
|
11.13 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from investment operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss)(3) |
|
|
0.11 |
|
|
|
0.06 |
|
|
|
0.11 |
|
|
|
0.15 |
|
|
|
0.16 |
|
Net
gains (losses) — realized and unrealized |
|
|
(0.68 |
) |
|
|
1.84 |
|
|
|
3.72 |
|
|
|
(4.43 |
) |
|
|
1.42 |
|
Subtotal:
income (loss) from investment operations |
|
|
(0.57 |
) |
|
|
1.90 |
|
|
|
3.83 |
|
|
|
(4.28 |
) |
|
|
1.58 |
|
Minus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
to shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
dividends |
|
|
0.09 |
|
|
|
0.12 |
|
|
|
0.09 |
|
|
|
0.14 |
|
|
|
0.09 |
|
Capital
gain distributions |
|
|
0.03 |
|
|
|
0.22 |
|
|
|
0.60 |
|
|
|
1.63 |
|
|
|
0.49 |
|
Subtotal:
distributions to shareholders |
|
|
0.12 |
|
|
|
0.34 |
|
|
|
0.69 |
|
|
|
1.77 |
|
|
|
0.58 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voluntary
contribution from Management |
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Equals: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price (NAV) at end of year |
|
|
12.47 |
|
|
|
14.04 |
|
|
|
17.18 |
|
|
|
11.13 |
|
|
|
12.13 |
|
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 |
|
|
1.13 |
|
|
|
1.08 |
|
|
|
1.06 |
|
|
|
1.09 |
|
|
|
1.07 |
|
Gross
expenses(1) |
|
|
1.22 |
|
|
|
1.19 |
|
|
|
1.16 |
|
|
|
1.19 |
|
|
|
1.21 |
|
Net
investment income (loss) — actual |
|
|
0.87 |
|
|
|
0.43 |
|
|
|
0.70 |
|
|
|
1.09 |
|
|
|
1.41 |
|
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) |
|
|
(4.23 |
) |
|
|
15.39 |
|
|
|
28.24 |
|
|
|
(27.43 |
) |
|
|
14.72 |
|
Net
assets at end of year (in millions of dollars) |
|
|
93.3 |
|
|
|
92.8 |
|
|
|
102.9 |
|
|
|
67.5 |
|
|
|
71.2 |
|
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 the fiscal
period. |
Financial
Highlights
These
financial highlights describe the performance of the Fund’s Investor Class
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 — Investor Class
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 |
|
|
19.52 |
|
|
|
18.30 |
|
|
|
23.38 |
|
|
|
29.38 |
|
|
|
21.86 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from investment operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss)(1) |
|
|
0.10 |
|
|
|
0.05 |
|
|
|
0.03 |
|
|
|
0.03 |
|
|
|
0.04 |
|
Net
gains (losses) — realized and unrealized |
|
|
0.32 |
|
|
|
6.20 |
|
|
|
7.76 |
|
|
|
(4.60 |
) |
|
|
3.60 |
|
Subtotal:
income (loss) from investment operations |
|
|
0.42 |
|
|
|
6.25 |
|
|
|
7.79 |
|
|
|
(4.57 |
) |
|
|
3.64 |
|
Minus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
to shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
dividends |
|
|
0.11 |
|
|
|
0.07 |
|
|
|
0.05 |
|
|
|
0.02 |
|
|
|
0.00 |
|
Capital
gain distributions |
|
|
1.53 |
|
|
|
1.10 |
|
|
|
1.74 |
|
|
|
2.93 |
|
|
|
1.27 |
|
Subtotal:
distributions to shareholders |
|
|
1.64 |
|
|
|
1.17 |
|
|
|
1.79 |
|
|
|
2.95 |
|
|
|
1.27 |
|
Equals: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price (NAV) at end of year |
|
|
18.30 |
|
|
|
23.38 |
|
|
|
29.38 |
|
|
|
21.86 |
|
|
|
24.23 |
|
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 |
|
|
0.89 |
|
|
|
0.87 |
|
|
|
0.82 |
|
|
|
0.83 |
|
|
|
0.83 |
|
Gross
expenses |
|
|
0.89 |
|
|
|
0.87 |
|
|
|
0.82 |
|
|
|
0.83 |
|
|
|
0.83 |
|
Net
investment income (loss) — actual |
|
|
0.56 |
|
|
|
0.26 |
|
|
|
0.11 |
|
|
|
0.11 |
|
|
|
0.20 |
|
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 (%) |
|
|
4.03 |
|
|
|
35.76 |
|
|
|
35.49 |
|
|
|
(17.16 |
) |
|
|
18.03 |
|
Net
assets at end of year (in millions of dollars) |
|
|
1,125.5 |
|
|
|
1,419.5 |
|
|
|
1,812.9 |
|
|
|
1,408.1 |
|
|
|
1,565.1 |
|
Portfolio
turnover rate (%) |
|
|
37 |
|
|
|
49 |
|
|
|
28 |
|
|
|
32 |
|
|
|
35 |
|
| (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 Investor Class
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 — Investor Class
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 |
|
|
32.87 |
|
|
|
30.58 |
|
|
|
30.38 |
|
|
|
44.85 |
|
|
|
40.77 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from investment operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss)(1) |
|
|
0.59 |
|
|
|
0.59 |
|
|
|
0.66 |
|
|
|
0.80 |
|
|
|
0.86 |
|
Net
gains (losses) — realized and unrealized |
|
|
1.03 |
|
|
|
0.46 |
|
|
|
14.39 |
|
|
|
(2.65 |
) |
|
|
1.41 |
|
Subtotal:
income (loss) from investment operations |
|
|
1.62 |
|
|
|
1.05 |
|
|
|
15.05 |
|
|
|
(1.85 |
) |
|
|
2.27 |
|
Minus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
to shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
dividends |
|
|
0.53 |
|
|
|
0.60 |
|
|
|
0.49 |
|
|
|
0.55 |
|
|
|
0.67 |
|
Capital
gain distributions |
|
|
3.38 |
|
|
|
0.65 |
|
|
|
0.09 |
|
|
|
1.68 |
|
|
|
— |
|
Subtotal:
distributions to shareholders |
|
|
3.91 |
|
|
|
1.25 |
|
|
|
0.58 |
|
|
|
2.23 |
|
|
|
0.67 |
|
Equals: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price (NAV) at end of year |
|
|
30.58 |
|
|
|
30.38 |
|
|
|
44.85 |
|
|
|
40.77 |
|
|
|
42.37 |
|
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 offset
arrangements had not been in effect. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
expenses — actual |
|
|
0.86 |
|
|
|
0.85 |
|
|
|
0.78 |
|
|
|
0.75 |
|
|
|
0.75 |
|
Gross
expenses |
|
|
0.86 |
|
|
|
0.85 |
|
|
|
0.78 |
|
|
|
0.75 |
|
|
|
0.75 |
|
Net
investment income (loss) — actual |
|
|
1.93 |
|
|
|
1.99 |
|
|
|
1.67 |
|
|
|
1.81 |
|
|
|
2.02 |
|
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 (%) |
|
|
6.25 |
|
|
|
3.23 |
|
|
|
50.05 |
|
|
|
(4.38 |
) |
|
|
5.56 |
|
Net
assets at end of year (in millions of dollars) |
|
|
1,174.3 |
|
|
|
1,087.2 |
|
|
|
1,628.3 |
|
|
|
1,556.5 |
|
|
|
1,570.7 |
|
Portfolio
turnover rate (%) |
|
|
109 |
|
|
|
157 |
|
|
|
89 |
|
|
|
82 |
|
|
|
81 |
|
| (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 Investor Class
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 — Investor Class
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 |
|
|
16.99 |
|
|
|
15.96 |
|
|
|
18.45 |
|
|
|
22.78 |
|
|
|
14.62 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from investment operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss)(1) |
|
|
(0.05 |
) |
|
|
(0.06 |
) |
|
|
(0.12 |
) |
|
|
(0.05 |
) |
|
|
(0.01 |
) |
Net
gains (losses) — realized and unrealized |
|
|
0.47 |
|
|
|
3.40 |
|
|
|
6.36 |
|
|
|
(4.98 |
) |
|
|
0.60 |
|
Subtotal:
income (loss) from investment operations |
|
|
0.42 |
|
|
|
3.34 |
|
|
|
6.24 |
|
|
|
(5.03 |
) |
|
|
0.59 |
|
Minus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
to shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
gain distributions |
|
|
1.45 |
|
|
|
0.85 |
|
|
|
1.91 |
|
|
|
3.13 |
|
|
|
0.64 |
|
Subtotal:
distributions to shareholders |
|
|
1.45 |
|
|
|
0.85 |
|
|
|
1.91 |
|
|
|
3.13 |
|
|
|
0.64 |
|
Equals: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price (NAV) at end of year |
|
|
15.96 |
|
|
|
18.45 |
|
|
|
22.78 |
|
|
|
14.62 |
|
|
|
14.57 |
|
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 |
|
|
0.90 |
|
|
|
0.88 |
|
|
|
0.83 |
|
|
|
0.84 |
|
|
|
0.85 |
|
Gross
expenses |
|
|
0.90 |
|
|
|
0.88 |
|
|
|
0.83 |
|
|
|
0.84 |
|
|
|
0.85 |
|
Net
investment income (loss) — actual |
|
|
(0.31 |
) |
|
|
(0.39 |
) |
|
|
(0.57 |
) |
|
|
(0.27 |
) |
|
|
(0.08 |
) |
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 (%) |
|
|
4.84 |
|
|
|
21.95 |
|
|
|
35.63 |
|
|
|
(24.92 |
) |
|
|
4.41 |
|
Net
assets at end of year (in millions of dollars) |
|
|
513.3 |
|
|
|
570.7 |
|
|
|
696.4 |
|
|
|
478.0 |
|
|
|
466.2 |
|
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 Investor Class
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 — Investor Class
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 |
|
|
24.16 |
|
|
|
19.32 |
|
|
|
16.03 |
|
|
|
24.69 |
|
|
|
23.65 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from investment operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss)(3) |
|
|
0.19 |
|
|
|
0.22 |
|
|
|
0.15 |
|
|
|
0.21 |
|
|
|
0.24 |
|
Net
gains (losses) — realized and unrealized |
|
|
(3.39 |
) |
|
|
(3.28 |
) |
|
|
8.52 |
|
|
|
(1.11 |
) |
|
|
0.67 |
|
Subtotal:
income (loss) from investment operations |
|
|
(3.20 |
) |
|
|
(3.06 |
) |
|
|
8.67 |
|
|
|
(0.90 |
) |
|
|
0.91 |
|
Minus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
to shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
dividends |
|
|
0.13 |
|
|
|
0.23 |
|
|
|
0.01 |
|
|
|
0.14 |
|
|
|
0.21 |
|
Capital
gain distributions |
|
|
1.51 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Subtotal:
distributions to shareholders |
|
|
1.64 |
|
|
|
0.23 |
|
|
|
0.01 |
|
|
|
0.14 |
|
|
|
0.21 |
|
Equals: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price (NAV) at end of year |
|
|
19.32 |
|
|
|
16.03 |
|
|
|
24.69 |
|
|
|
23.65 |
|
|
|
24.35 |
|
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 |
|
|
1.17 |
|
|
|
1.11 |
|
|
|
1.01 |
|
|
|
0.96 |
|
|
|
0.96 |
|
Gross
expenses(1) |
|
|
1.27 |
|
|
|
1.37 |
|
|
|
1.49 |
|
|
|
1.45 |
|
|
|
1.51 |
|
Net
investment income (loss) — actual |
|
|
0.93 |
|
|
|
1.26 |
|
|
|
0.68 |
|
|
|
0.85 |
|
|
|
0.99 |
|
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) |
|
|
(12.97 |
) |
|
|
(16.10 |
) |
|
|
54.09 |
|
|
|
(3.67 |
) |
|
|
3.88 |
|
Net
assets at end of year (in millions of dollars) |
|
|
34.5 |
|
|
|
23.0 |
|
|
|
35.2 |
|
|
|
32.7 |
|
|
|
32.4 |
|
Portfolio
turnover rate (%) |
|
|
56 |
|
|
|
16 |
|
|
|
31 |
|
|
|
22 |
|
|
|
15 |
|
(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 Investor Class
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 — Investor Class
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 |
|
|
44.96 |
|
|
|
37.83 |
|
|
|
44.81 |
|
|
|
56.71 |
|
|
|
37.93 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from investment operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss)(3) |
|
|
(0.30 |
) |
|
|
(0.30 |
) |
|
|
(0.45 |
) |
|
|
(0.28 |
) |
|
|
(0.18 |
) |
Net
gains (losses) — realized and unrealized |
|
|
0.29 |
|
|
|
8.82 |
|
|
|
12.93 |
|
|
|
(9.57 |
) |
|
|
0.73 |
|
Subtotal:
income (loss) from investment operations |
|
|
(0.01 |
) |
|
|
8.52 |
|
|
|
12.48 |
|
|
|
(9.85 |
) |
|
|
0.55 |
|
Minus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
to shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
gain distributions |
|
|
7.12 |
|
|
|
1.54 |
|
|
|
0.58 |
|
|
|
8.93 |
|
|
|
— |
|
Subtotal:
distributions to shareholders |
|
|
7.12 |
|
|
|
1.54 |
|
|
|
0.58 |
|
|
|
8.93 |
|
|
|
— |
|
Equals: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price (NAV) at end of year |
|
|
37.83 |
|
|
|
44.81 |
|
|
|
56.71 |
|
|
|
37.93 |
|
|
|
38.48 |
|
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 and/or offset arrangements had not been in effect. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
expenses — actual |
|
|
1.19 |
|
|
|
1.18 |
|
|
|
1.07 |
|
|
|
1.01 |
|
|
|
1.01 |
|
Gross
expenses(1) |
|
|
1.58 |
|
|
|
1.41 |
|
|
|
1.28 |
|
|
|
1.32 |
|
|
|
1.32 |
|
Net
investment income (loss) — actual |
|
|
(0.78 |
) |
|
|
(0.78 |
) |
|
|
(0.85 |
) |
|
|
(0.63 |
) |
|
|
(0.49 |
) |
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) |
|
|
4.06 |
|
|
|
23.20 |
|
|
|
27.95 |
|
|
|
(19.94 |
) |
|
|
1.45 |
|
Net
assets at end of year (in millions of dollars) |
|
|
65.6 |
|
|
|
72.5 |
|
|
|
85.7 |
|
|
|
62.8 |
|
|
|
59.7 |
|
Portfolio
turnover rate (%) |
|
|
161 |
|
|
|
128 |
|
|
|
127 |
|
|
|
121 |
|
|
|
129 |
|
(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 Investor Class
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 — Investor Class
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 |
|
|
41.86 |
|
|
|
37.08 |
|
|
|
39.44 |
|
|
|
49.85 |
|
|
|
38.86 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from investment operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss)(1) |
|
|
0.30 |
|
|
|
0.22 |
|
|
|
0.18 |
|
|
|
0.18 |
|
|
|
0.14 |
|
Net
gains (losses) — realized and unrealized |
|
|
(1.80 |
) |
|
|
5.56 |
|
|
|
12.84 |
|
|
|
(6.29 |
) |
|
|
5.05 |
|
Subtotal:
income (loss) from investment operations |
|
|
(1.50 |
) |
|
|
5.78 |
|
|
|
13.02 |
|
|
|
(6.11 |
) |
|
|
5.19 |
|
Minus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
to shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
dividends |
|
|
0.16 |
|
|
|
0.25 |
|
|
|
0.26 |
|
|
|
0.34 |
|
|
|
0.01 |
|
Capital
gain distributions |
|
|
3.12 |
|
|
|
3.17 |
|
|
|
2.35 |
|
|
|
4.54 |
|
|
|
3.50 |
|
Subtotal:
distributions to shareholders |
|
|
3.28 |
|
|
|
3.42 |
|
|
|
2.61 |
|
|
|
4.88 |
|
|
|
3.51 |
|
Equals: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price (NAV) at end of year |
|
|
37.08 |
|
|
|
39.44 |
|
|
|
49.85 |
|
|
|
38.86 |
|
|
|
40.54 |
|
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 |
|
|
0.86 |
|
|
|
0.86 |
|
|
|
0.84 |
|
|
|
0.85 |
|
|
|
0.87 |
|
Gross
expenses |
|
|
0.86 |
|
|
|
0.86 |
|
|
|
0.84 |
|
|
|
0.85 |
|
|
|
0.87 |
|
Net
investment income (loss) — actual |
|
|
0.80 |
|
|
|
0.59 |
|
|
|
0.40 |
|
|
|
0.40 |
|
|
|
0.36 |
|
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 (%) |
|
|
(2.70 |
) |
|
|
16.12 |
|
|
|
34.45 |
|
|
|
(13.70 |
) |
|
|
14.74 |
|
Net
assets at end of year (in millions of dollars) |
|
|
446.1 |
|
|
|
429.6 |
|
|
|
437.8 |
|
|
|
346.2 |
|
|
|
354.8 |
|
Portfolio
turnover rate (%) |
|
|
20 |
|
|
|
21 |
|
|
|
16 |
|
|
|
14 |
|
|
|
20 |
|
| (1) |
Calculated
based on the average number of shares outstanding during each fiscal
period. |
Your Investment
Share Prices
Because
Investor Class shares of the Funds 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 New York Stock Exchange
(“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). If you use a financial intermediary, you should check with
that provider 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 Investor Class 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.
Privileges
and Services
If you
purchase Investor Class shares directly from the Distributor, you have access to
the services listed below. If you purchase shares through a financial
intermediary, consult that provider for information about investment
services.
Systematic
Investments — This plan lets you take advantage of dollar-cost averaging by
establishing periodic investments of $100 or more a month. You choose the
schedule and amount. Your investment money may come from an eligible money
market fund outside the fund family or your bank account.
Systematic
Withdrawals — This plan lets you arrange withdrawals of at least $100 from a
fund in the fund family on a periodic schedule. You can also set up payments to
distribute the full value of an account over a given time. While this service
can be helpful to many investors, be aware that it could generate capital gains
or losses.
Electronic
Bank Transfers — When you sell Fund shares, you can have the money sent to
your bank account electronically rather than mailed to you as a check. Please
note that your bank must be a member of the Automated Clearing House, or ACH,
system.
Internet
Access — At www.nb.com, you can make transactions, check your account and
access a wealth of information.
FUNDfone®
— Get up-to-date performance and account information through our 24-hour
automated service by calling 800-335-9366. If you already have an account with
us, you can place orders to buy, sell, or exchange fund shares.
Dollar-Cost
Averaging
Systematic
investing allows you to take advantage of the principle of dollar-cost
averaging. When you make regular investments of a given amount — say, $100 a
month — you will end up investing at different share prices over time. When the
share price is high, your $100 buys fewer shares; when the share price is low,
your $100 buys more shares. Over time, this can help lower the average price you
pay per share.
Dollar-cost
averaging cannot guarantee you a profit or protect you from losses in a
declining market. But it can be beneficial over the long
term.
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). 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 Investor Class 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
Investor Class 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 Investor Class shares of the Fund or paid to
you in cash.
How
distributions are taxed — Except for tax-advantaged retirement plans and
accounts 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 individual retirement accounts (“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.
Maintaining Your Account
When you
buy shares — Instructions for buying shares from Neuberger Berman BD LLC,
the Funds’ Distributor, are under “Buying Shares.” See “Financial
Intermediaries” if you are buying shares through a financial intermediary.
Whenever you make an initial investment in one of the Funds or add to your
existing account (except with an automatic investment), you will be sent a
statement confirming your transaction if you bought shares directly. Investors
who bought shares through a financial intermediary should contact their
financial intermediary for information regarding transaction statements.
Investment checks must be drawn on a U.S. bank. 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.
When you
purchase shares, you will receive the next share price to be calculated after
your 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. 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. In addition, if you have
established a systematic investment program (SIP) with one or more of the Funds,
your order is deemed “received in proper form” on the date you pre-selected on
your SIP application for the systematic investments to occur.
Investor
Class of each of Neuberger Berman Focus Fund, Neuberger Berman Large Cap Growth
Fund, Neuberger Berman International Equity Fund, Neuberger Berman Large Cap
Value Fund, Neuberger Berman Mid Cap Growth Fund, Neuberger Berman Mid Cap
Intrinsic Value Fund, Neuberger Berman Small Cap Growth Fund and Neuberger
Berman Sustainable Equity Fund is closed to new investors. Only certain
investors are allowed to purchase Investor Class shares of such Funds, as
follows:
| ■ |
Grandfathered
Investors may purchase Investor Class shares of Neuberger Berman Focus
Fund, Neuberger Berman Large Cap Growth Fund, Neuberger Berman
International Equity Fund, Neuberger Berman Large Cap Value Fund,
Neuberger Berman Mid Cap Growth Fund, Neuberger Berman Mid Cap Intrinsic
Value Fund, Neuberger Berman Small Cap Growth Fund and Neuberger Berman
Sustainable Equity Fund. “Grandfathered Investors” are investors in any
fund in the Neuberger Berman family of funds who hold their shares
directly with Neuberger Berman, who established accounts in Investor Class
or Trust Class shares prior to March 1, 2008, and who have
continuously maintained an account directly with Neuberger Berman since
that date. A Grandfathered Investor’s “immediate family” (his or her
spouse — or equivalent if recognized under local law — and his or her
children under the age of 21) are also deemed “Grandfathered Investors.” A
Grandfathered Investor’s mother, father, sister, or brother may open a
custodial account for the Grandfathered Investor’s minor children.
Grandfathered Investors do not include any financial intermediaries who
have accounts with a Fund or shareholders who invest through such
financial intermediaries. |
Shareholders
who, by virtue of an investment made through a financial intermediary, are
permitted to invest in a class that is generally closed to new investors may
have to continue to participate in the same program of fees and services at that
financial intermediary to maintain their ability to purchase that class. Please
check with your financial intermediary for more information.
When you
sell shares — If you bought your shares from the Distributor, instructions
for selling shares are under “Selling Shares.” See “Financial Intermediaries” if
you want to sell shares you purchased through a financial intermediary. You can
place an order to sell some or all of your shares at any time. When you sell
shares, you will receive the next share price to be calculated after your order
has been received in proper form. Redemption orders are deemed “received in
proper form” when the Funds’ transfer agent has received your order to
sell.
In some
cases, you will have to place your order to sell shares in writing, and you will
need a Medallion signature guarantee (see “Medallion Signature
Guarantees”).
When selling
shares in an account that you do not intend to close, remember to leave at least
$1,000 worth of shares in the account. Otherwise, the Fund has the right to
request that you bring the balance back up to the minimum level. If you have not
done so within 60 days, we may close your account and redeem the
proceeds.
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.
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).
When you
exchange shares — You can move an investment from one fund to a comparable
class of another fund in the fund family (or to an eligible money market fund
outside 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.
In addition,
Grandfathered Investors may exchange into Class A shares of a fund in the fund
family without paying any applicable sales charges.
See
“Additional Exchange Information” in the Statement of Additional Information for
information regarding eligible money market funds outside the fund
family.
Placing
orders by telephone — If you use a financial intermediary, contact your
financial intermediary for its policies regarding telephone orders.
Fund
investors have the option of placing telephone orders, subject to certain
restrictions. This option is available to you unless you indicate on your
account application (or in a subsequent letter to us or to SS&C Global
Investor & Distribution Solutions, Inc.) that you do not want it.
Whenever we
receive a telephone order, we take steps to make sure the order is legitimate.
These may include asking for identifying information and recording the call. As
long as a Fund and its representatives take reasonable measures to verify the
authenticity of calls, investors may be responsible for any losses caused by
unauthorized telephone orders.
In unusual
circumstances, it may be difficult to place an order by phone. In these cases,
consider sending your order by express delivery. You may also use
FUNDfone® or visit our website at www.nb.com.
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.
The Funds do
not issue certificates for shares. If you have share certificates from prior
purchases, the only way to redeem them is by sending in the certificates. If you
lose a certificate, you will incur a fee before any transaction can be
processed.
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.
Other
policies — 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 |
■ |
suspend
the telephone order 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 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) |
■ |
change
investment minimums or other requirements for buying and selling, or waive
any minimums or requirements for certain investors |
■ |
remain
open and process orders to purchase or sell Fund shares when the Exchange
is closed. |
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.
Medallion
Signature Guarantees
You may
need a Medallion signature guarantee when you sell shares directly or through a
financial intermediary. A Medallion signature guarantee is a guarantee that your
signature is authentic.
Medallion
signature guarantees are required for a variety of transactions including
requests for changes to your account or to the instructions for distribution of
proceeds. We reserve the right to require a Medallion signature guarantee on any
transaction at our discretion.
Most
banks, brokers, and other financial institutions can provide you with one. Some
may charge a fee; others may not, particularly if you are a customer of
theirs.
A
notarized signature from a notary public is not a Medallion signature
guarantee.
Financial
Intermediaries
The
Investor Class shares available in this prospectus may be purchased through
certain financial intermediaries such as banks, brokerage firms, workplace
retirement programs, and financial advisers.
The
fees and policies outlined in this prospectus are set by the Funds and by the
Distributor. However, if you use a financial intermediary, most of the
information you will need for managing your investment will come from that
provider. This includes information on how to buy and sell shares, investor
services, and additional policies.
If you
use a financial intermediary, contact that provider to buy or sell shares of the
Funds described in this prospectus.
Most
financial intermediaries allow you to take advantage of the fund exchange
program, which is designed for moving an investment from one fund to a
comparable class of another fund in the fund family if made available by that
financial intermediary through an exchange of shares.
In
exchange for the services it offers, your financial intermediary may charge fees
that are in addition to those described in this prospectus.
Additional
Payments to Financial Intermediaries
The
Distributor and/or its affiliates pay additional compensation, out of their own
resources and not as an expense of the Funds, to certain financial
intermediaries, including affiliates, in connection with the sale, distribution,
retention and/or servicing of Fund shares. The amount of these payments may be
substantial and may differ among financial intermediaries based on, for example,
the level or type of services provided by a financial intermediary. These
payments are in addition to any fees paid to compensate financial intermediaries
for providing distribution related services to the Funds and/or administrative
or shareholder services to Fund shareholders. These arrangements are separately
negotiated between the Distributor and/or its affiliates, and the recipients of
these payments or their affiliates. If your financial intermediary receives such
payments, these payments may provide an incentive for the financial intermediary
to make the Funds’ shares available to you or recommend the Funds. If you have
purchased shares of a Fund through a financial intermediary, please speak with
your financial intermediary to learn more about any payments it receives from
the Distributor and/or its affiliates, as well as fees and/or commissions the
financial intermediary charges. You should also consult disclosures made by your
financial intermediary at the time of purchase. Any such payments by the
Distributor or its affiliates will not change the net asset value or the price
of a Fund’s shares. For more information, please see the Funds’ Statement of
Additional Information.
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.
If you are a
direct investor buying or selling shares, instructions are provided in the
following charts. Investors buying or selling shares through a financial
intermediary should contact it for instructions.
Buying
Shares
Method |
|
Things
to know |
|
Instructions |
Sending
us a check |
|
Your
first investment must be at least $1,000
Additional
investments can be as little as $100
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 |
|
Fill
out the application and enclose your check
If
regular first-class mail, send to:
Neuberger
Berman Funds P.O. Box 219189 Kansas City, MO 64121-9189
If
express delivery, registered mail, or certified mail, send to:
Neuberger
Berman Funds 430 West 7th Street Suite
219189 Kansas City, MO 64105-1407 |
Wiring
money |
|
All
wires must be for at least $1,000 |
|
Before
wiring any money, call 800-877-9700 for an order confirmation
Have
your financial institution send your wire to SS&C Global Investor
& Distribution Solutions, Inc.
Include
your name, the Fund name, your account number and other information as
requested |
Exchanging
from another fund |
|
All
exchanges must be for at least $1,000
Both
accounts involved must be registered in the same name, address and
taxpayer identification number
An
exchange order cannot be cancelled or changed once it has been
placed |
|
Call
800-877-9700 to place your order
To
place an order using FUNDfone®, call 800-335-9366 or
visit www.nb.com |
By
telephone |
|
We do
not accept phone orders for a first investment
Additional
investments must be for at least $1,000
Additional
shares will be purchased when your order is received in proper
form
Not
available on retirement accounts |
|
Call
800-877-9700 to notify us of your purchase
Immediately
follow up with a wire or electronic transfer To add shares to an existing
account using FUNDfone®, call 800-335-9366 or visit
www.nb.com |
Setting
up systematic investments |
|
All
investments must be at least $100 |
|
Call
800-877-9700 for instructions |
Selling Shares
Method |
|
Things
to know |
|
Instructions |
Sending
us a letter |
|
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 designated a bank account on your application, you can request that
we wire the proceeds to this account; if the total balance of all of your
Neuberger Berman fund accounts is less than $100,000, you will be charged
an $8.00 wire fee
You can
also request that we send the proceeds to your designated bank account by
electronic transfer (ACH) without a fee
You may
need a Medallion signature guarantee
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 |
|
Send us
a letter requesting us to sell shares 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
regular first-class mail, send to:
Neuberger
Berman Funds P.O. Box 219189 Kansas City, MO 64121-9189
If
express delivery, registered mail, or certified mail, send to:
Neuberger
Berman Funds 430 West 7th Street Suite
219189 Kansas City, MO 64105-1407 |
Sending
us a fax |
|
For
amounts of up to $100,000
Not
available if you have changed the address on the account in the past 15
days |
|
Write a
request to sell shares as described above
Call
800-877-9700 to obtain the appropriate fax number |
Calling
in your order |
|
All
phone orders to sell shares must be for at least $1,000 unless you are
closing out an account
Not
available if you have declined the phone option or are selling shares in
certain retirement accounts (The only exception is for those retirement
shareholders who are at least 59½ or older and have their birthdates on
file)
Not
available if you have changed the address on the account in the past 15
days |
|
Call
800-877-9700 to place your order
Give
your name, account number, the Fund name, the dollar amount or number of
shares you want to sell, and any other instructions
To
place an order using FUNDfone®, call 800-335-9366 or
visit www.nb.com |
Exchanging
into another fund |
|
All
exchanges must be for at least $1,000
Both
accounts involved must be registered in the same name, address and
taxpayer identification number
An
exchange order cannot be cancelled or changed once it has been
placed |
|
Call
800-877-9700 to place your order
To
place an order using FUNDfone®, call 800-335-9366 or
visit www.nb.com |
Setting
up systematic withdrawals |
|
Withdrawals
must be at least $100 |
|
Call
800-877-9700 for instructions |
Retirement
Plans and Accounts
We
offer investors a number of tax-advantaged plans and accounts for retirement
saving:
Traditional
IRAs allow money to grow tax-deferred until you take it out, usually at or after
retirement. Contributions are deductible for some investors, but even when they
are not, an IRA can be beneficial.
Roth
IRAs offer tax-free growth like a traditional IRA, but instead of tax-deductible
contributions, the withdrawals are tax-free for investors who meet certain
requirements.
Also
available: SEP-IRA, SIMPLE-IRA, Keogh, and other types of plans. Coverdell
Education Savings Accounts (formerly Education IRAs), though not for retirement
savings, also are available. Consult your tax professional to find out which
types of plans or accounts may be beneficial for you. Call 800-877-9700 for
information on any Neuberger Berman retirement plan or
account.
Internet
Connection
If you
use a financial intermediary, contact that provider about the services and
information it provides on the Internet.
Investors
with Internet access can enjoy many valuable and time-saving features by
visiting us at www.nb.com.
The
site offers more complete information on our funds, including current
performance data, portfolio manager interviews, tax information plus educational
articles, news and analysis. You can tailor the site so it serves up information
that is most relevant to you.
As a
Fund shareholder who bought shares directly from the Distributor, you can use
the web site to access account information and even make secure transactions —
24 hours a day.
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; change, suspend or revoke the exchange
privilege; or suspend the telephone order 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 Investor Class shares of the Funds.
NEUBERGER
BERMAN EQUITY FUNDS
Investor
Class 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
800-877-9700
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
A0088 12/23