NEW YORK--(BUSINESS WIRE)--Neuberger Berman Group LLC, one of the world’s leading employee-owned money managers, announced today the launch of two funds, Neuberger Berman Global Equity Fund (tickers: NGQAX, NGQCX, NGQIX) and Neuberger Berman Global Thematic Opportunities Fund (tickers: NGHAX, NGHCX, NGHIX). The two new portfolios join Neuberger Berman Global Allocation Fund (tickers: NGLAX, NGLCX, NGLIX), introduced in June, in providing U.S. investors with broad strategies covering the world’s developed and developing capital markets.
“The global investment landscape provides U.S. investors with a wide range of attractive opportunities, and we’re pleased to offer our clients these two new global funds, managed by exceptional investment teams,” said Joseph Amato, Neuberger Berman’s president. “Along with the Global Allocation portfolio available for the first time to investors in a mutual fund format, the Neuberger Berman Global Equity and Global Thematic Opportunities Funds are designed to offer shareholders a broad range of investment strategies spanning the world’s capital markets.”
Neuberger Berman Global Equity Fund invests primarily in mid- and large-capitalization companies in both developed and emerging markets. The team focuses on companies that are able to sustain high levels of profitability and organic revenue growth, but that trade at a discount to intrinsic value. They look for companies with a sustainable competitive advantage, a shareholder-oriented management team, and a healthy balance sheet underpinned by strong cash flow. The team seeks to control volatility by assessing political, economic and business risk facing each company being considered for the portfolio.
Neuberger Berman Global Equity Fund is managed by Benjamin Segal and Saurin Shah. Segal also serves as manager of the Neuberger Berman International and International Large Cap Funds (tickers: NIRAX, NIRCX, NBISX, NBITX and NBNAX, NBNCX, NILIX, NBNRX, NILTX, respectively), both of which are rated 4 stars by Morningstar Inc. As of July 31, 2011, the team managed a total of $7.6 billion in global assets for Neuberger Berman’s institutional and individual clients.
Neuberger Berman Global Thematic Opportunities Fund invests primarily in equity securities of companies in both developed and emerging markets. Through an unconstrained approach, the portfolio managers seek to identify significant and under-appreciated trends across the globe, and utilize proprietary research to move within themes to identify undervalued companies they believe will benefit from such trends. The strategy has been available to institutional and high net worth investors since 2003.
Portfolio managers of the Fund are Tony Gleason, Alexandra (Sandy) Pomeroy, Richard Levine, and William Hunter. They are members of Neuberger Berman’s MLG Group, which as of July 31, 2011, managed $6.4 billion in assets for institutions and individuals in global and U.S. strategies, including the Morningstar 5-star rated Neuberger Berman Equity Income Fund (tickers: NBHAX, NBHCX, NBHIX, NBHRX).
About Neuberger Berman
Established in 1939, Neuberger Berman is one of the world’s leading independent and employee-controlled asset management companies, managing approximately $198 billion in assets for institutional and individual investors as of June 30, 2011, including approximately $96 billion in equity, $85 billion in fixed income, and $18 billion in alternatives. Neuberger Berman provides a broad range of global investment solutions to institutions and individuals through customized separately managed accounts, mutual funds and alternative investment products. For more information, please visit our website at www.nb.com.
An investor should consider the investment objectives, risks, and fees and expenses of Neuberger Berman Global Equity Fund, Neuberger Berman Global Thematic Opportunities Fund, Neuberger Berman International Fund, Neuberger Berman International Large Cap Fund, Neuberger Berman Global Allocation Fund and Neuberger Berman Equity Income Fund carefully before investing. This and other important information can be found in the Funds’ prospectus or summary prospectus, which you can obtain by calling 877.628.2583. Please read the prospectus or summary prospectus carefully before making an investment.
Small- and mid-capitalization stocks are more vulnerable to financial risks and other risks than stocks of larger companies. They also trade less frequently and in lower volume than larger company stocks, so their market prices tend to be more volatile. Large-cap stocks are subject to all the risks of stock market investing, including the risk that they may lose value.
Value stocks may remain undervalued during a given period or may not ever realize their full value. This may happen, among other reasons, because of a failure to anticipate which stocks or industries would benefit from changing market or economic conditions.
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. Bad economic news or changing investor perceptions can negatively affect growth stocks across several industries and sectors simultaneously.
To the extent a Fund invests more heavily in particular sectors, its performance will be especially sensitive to developments that significantly affect those sectors. Individual sectors may move up and down more than the broader market. The several industries that constitute a sector may all react in the same way to economic, political or regulatory events.
Because Neuberger Berman Global Thematic Opportunities Fund’s investment program depends on the identification of significant long-term themes, the Fund’s performance may suffer if the Portfolio Managers do not correctly identify such themes. Failure to correctly identify themes, or the failure of a theme to unfold in the way the Portfolio Managers anticipate, may result from many causes, including the following: governments or others may decide to oppose or delay certain economic, social or political themes; demographic or economic data necessary to understand correctly the way in which certain themes may unfold in some countries may be incorrect or incomplete; identification of themes and their longevity may require attention to subtle cultural factors not always apparent to outside observers; or social and political changes or natural disasters in some parts of the world may alter the underlying conditions or affect the availability of natural resources necessary to an emerging theme.
Shares in Neuberger Berman Global Allocation Fund may fluctuate based on interest rates, market condition, credit quality and other factors. In a rising interest rate environment, the value of the Fund’s fixed income investments is likely to fall.
Investing in foreign securities involves greater risks than investing in securities of U.S. issuers, including currency fluctuations, potential political instability, restrictions on foreign investors, less regulation and less market liquidity. Governments of emerging market countries may be more unstable and more likely to impose capital controls, nationalize a company or an industry, place restrictions on foreign ownership and on withdrawing sales proceeds of securities from the country, and/or impose burdensome taxes that could adversely affect security prices. These countries may also have less developed legal and accounting systems. Securities issued in these countries may be more volatile and less liquid than securities issued in foreign countries with more developed economies or markets. Changes in currency exchange rates bring an added dimension of risk. Currency fluctuations could erase investment gains or add to investment losses.
From time to time, Neuberger Berman Global Allocation Fund may hedge against some currency risks; however, the hedging instruments may not always perform as the Fund expects and could produce losses. Suitable hedging instruments may not be available for currencies of emerging market countries. Non-U.S. currency forward contracts, swaps, or other derivatives contracts on non-U.S. currencies involve a risk of loss if currency exchange rates move against the Fund.
Derivatives may involve risks different from, or greater than, those associated with more traditional investments. Derivatives can be highly complex, can create investment leverage and may be highly volatile, and Neuberger Berman Global Allocation Fund could lose more than the amount it invests. Derivatives may be difficult to value and highly illiquid, and the Fund may not be able to close out or sell a derivative position at a particular time or at an anticipated price. The Fund’s synthetic market investment strategies involve the risks associated with the Fund’s exposure to its counterparties. The Fund’s investments in the OTC market introduce counterparty risk due to the possibility that the dealer providing the derivative or other product will fail to timely perform its payment and other obligations. The Fund’s investments in the futures markets also introduce the risk that its futures commission merchant (“FCM”) would default on an obligation set forth in an agreement between the Fund and the FCM, including the FCM’s obligation to return margin posted in connection with the Fund’s futures contracts.
Short sales involve selling a security Neuberger Berman Global Allocation Fund does not own in anticipation that the security’s price will decline. Short sales may help hedge against general market risk to the securities held in the portfolio but theoretically present unlimited risk on an individual stock basis, since the Fund may be required to buy the security sold short at a time when the security has appreciated in value. The Fund may not always be able to close out a short position at a favorable time and price. If the Fund covers its short sale at an unfavorable price, the cover transaction is likely to reduce or eliminate any gain, or cause a loss to the Fund, as a result of the short sale.
Derivative instruments and short sales may also have an effect similar to that of leverage and can result in losses to the Fund that exceed the amount originally invested in the derivative instruments. Leverage may amplify changes in the Fund’s net asset value (“NAV”).
ETFs are subject to tracking error and may be unable to sell poorly performing stocks that are included in their index. ETFs may trade in the secondary market at prices below the value of their underlying portfolios and may not be liquid. Through its investment in exchange traded funds, Neuberger Berman Global Allocation Fund and Neuberger Berman Global Equity Fund are subject to the risks of the ETF’s investments, as well as to the ETF’s expenses.
The value of a convertible security increases or decreases with the price of the underlying common stock. In general, a convertible security is subject to the risks of stocks (and its price may be as volatile as that of the underlying stock) when the underlying stock’s price is high relative to the conversion price and is subject to the risks of debt securities (and is particularly sensitive to changes in interest rates) when the underlying stock’s price is low relative to the conversion price. Many convertible securities have credit ratings that are below investment grade. Lower-rated debt securities involve greater risks than investment grade debt securities. Lower-rated debt securities may fluctuate more widely in price and yield than investment grade debt securities and may fall in price during times when the economy is weak or is expected to become weak. In addition, because companies that issue convertible securities are often small- or mid-cap companies, to the extent the Fund invests in convertible securities, it will be subject to the risks of investing in these companies.
REIT and other real estate company securities are subject to, among other risks: declines in property values; defaults by mortgagors or other borrowers and tenants; increases in property taxes and other operating expenses; overbuilding; fluctuations in rental income; changes in interest rates; lack of availability of mortgage funds or financing; extended vacancies of properties; changes in tax and regulatory requirements; losses due to environmental liabilities; or casualty or condemnation losses. REITs also are dependent upon management skills and are subject to heavy cash flow dependency, self-liquidation and the possibility of failing to qualify for tax-free “pass-through” of income under the federal tax law. REIT and other real estate company securities tend to be small- to mid-cap stocks and are subject to risks of investing in small- to mid-cap stocks.
Utility companies are sensitive to changes in interest rates and other economic conditions, government regulation, uncertainties created by deregulation, environmental protection or energy conservation policies and practices, the level and demand for services, and the cost and delay of technological developments. In addition, securities of utility companies are volatile and may underperform in a sluggish economy.
The use of options involves investment strategies and risks different from those associated with ordinary portfolio securities transactions. If a Fund’s Portfolio Managers apply a strategy at an inappropriate time or judge market conditions or trends incorrectly, options may lower the Fund’s return. There can be no guarantee that the use of options will increase a Fund’s return or income. Government legislation or regulation could affect the use of derivatives and could limit a Fund’s ability to pursue its investment strategies.
Writing (selling) a call option obligates a Fund to sell the underlying security to a purchaser at a specified price if the purchaser decides to exercise the option. The Fund receives a premium when it writes a call option. A call option is “covered” if the Fund simultaneously holds an equivalent position in the security underlying the option. When the Fund writes a covered call option, it assumes the risk that it must sell the underlying security at a price that may be lower than the market price of the security, and it gives up the opportunity to profit from a price increase in the underlying security above the exercise price.
Writing (selling) a put option obligates a Fund to acquire the underlying security from a purchaser at a specified price if the purchaser decides to exercise the option. The Fund receives a premium when it writes a put option. When the Fund writes a put option, it assumes the risk that it must purchase the underlying security at a price that may be higher than the market price of the security.
As of July 31, 2011, the overall Morningstar rating for Neuberger Berman International Fund – Investor Class was 4 stars (out of 724 foreign large blend funds). The Fund’s Morningstar ratings for the 3-, 5- and 10-year periods ended July 31, 2011 were 4 stars (out of 724 foreign large blend funds), 3 stars (out of 531 foreign large blend funds) and 5 stars (out of 303 foreign large blend funds), respectively.
As of July 31, 2011, the overall Morningstar rating for Neuberger Berman International Large Cap Fund – Trust Class was 4 stars (out of 724 foreign large blend funds). The Fund’s Morningstar rating for the 3-year period ended July 31, 2011 was 4 stars (out of 705 foreign large blend funds). Neuberger Berman International Large Cap Fund has an inception date of 12/20/07 and therefore does not have 5-year or 10-year ratings.
As of July 31, 2011, the overall Morningstar rating for Neuberger Berman Equity Income Fund – Institutional Class was 5 stars (out of 352 mid-cap value funds). The Fund’s Morningstar rating for the 3-year period ended July 31, 2011, was 5 stars (out of 352 mid-cap value funds). Neuberger Berman Equity Income Fund has an inception date of 6/9/08 and therefore does not have 5-year or 10-year ratings.
For each retail mutual fund with at least a three-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive five stars, the next 22.5% receive four stars, the next 35% receive three stars, the next 22.5% receive two stars and the bottom 10% receive one star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Overall Morningstar Rating for a retail mutual fund is derived from a weighted average of the performance figures associated with its three-, five-and ten-year (if applicable) Morningstar Rating metrics. Ratings are ©2011 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
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