Post on 30-Sep-2020
Neuberger Berman
US Multi Cap Opportunities Fund
October 2018
Richard S. Nackenson
Managing Director and Senior Portfolio Manager
Overall MORNINGSTAR RATINGTM as of 30/9/18
For Professional Client Use Only
For Professional Client Use Only
Table of Contents
I. FIRM OVERVIEW
II. FUND OVERVIEW
III. INVESTMENT PROCESS
IV. FUND PERFORMANCE & PORTFOLIO CHARACTERISTICS
V. HISTORICAL CATEGORY, CAPITALISATION & SECTOR WEIGHTINGS
VI. BIOGRAPHIES & TEAM STRUCTURE
VII. CASE STUDIES
VIII. LONG-TERM PERFORMANCE & SUMMARY TERMS
IX. DISCLAIMER
FIRM OVERVIEW
Employee-Owned Investment Manager
Partnering with clients to achieve their unique objectives
Alignment of Interests
Portfolio managers invest alongside clients
Breadth of Independent Perspectives
600 investment professionals connected across public and
private markets, equity, fixed income and alternatives
Experienced and Stable Teams
25+ year average industry experience for lead PMs; 96%
annualized retention rate of senior investment professionals at MD
and SVP level since becoming an independent company in 2009
Innovative Investment Solutions
A track record of client partnerships and long-term performance
Deep Resources
Extensive fundamental research, access to management,
innovative ESG research, and sophisticated risk management
1. Institutional-oriented equity and fixed income assets under management (“AUM”) includes the firm’s equity and fixed income institutional separate account (“ISA”), registered fund, and managed account/wrap (“MAG”) offerings and are based on the overall performance of each individual investment offering against its respective benchmark. High net worth/private asset management (“HNW”) AUM is excluded. If HNW AUM were included, the percentage of AUM outperforming the benchmark since inception period would have been 86% for equities and 94% for fixed income. Equity and Fixed Income AUM outperformance results are asset-weighted so individual offerings with the largest amount of assets under management have the largest impact on the results. Please see additional disclosures for important information regarding Private Equity methodology. All performance data for NB Private Equity funds, private equity indices data is as of March 31, 2018. Results are shown gross of fees. Individual offerings may have experienced negative performance during certain periods of time. See Additional Disclosures for additional information regarding the outperformance statistics shown (including 3-, 5- and 10-yr statistics for institutional-oriented equity and fixed income). Indexes are unmanaged and are not available for direct investment. Investing entails risks, including possible loss of principal. Past performance is no guarantee of future results.
Long-term Outperformance1
87%Institutional-oriented equity
Percentage of institutional-oriented AUM outperforming
benchmark since inception ended September 30, 2018
95%Institutional-oriented fixed income
Percentage of institutional-oriented AUM outperforming
benchmark since inception ended September 30, 2018
73%
Private equity
Percentage of NB Private Equity funds raised between
2005 – 2016 (since inception performance)
outperforming benchmark Net IRR
4
Employee Ownership Fosters Team Stability and Alignment with Clients
Industry-leading experience, retention and culture
1. Employee assets include current and former employees and their family members.
of clients’ assets managed by
lead PMs who have 20+ years
of industry experience
Manager Experience
Retention Levels For Senior Investment Professionals
Managing Directors
(includes retirements)
Managing Directors
(competitor departures only)
98%
98%
99%
91%
94%
100%
99%
100%
99%
100%
2013
2014
2015
2016
2017
93%
Alignment With Clients
invested by Neuberger Berman employees
alongside clients1~$3bn100%independent,
employee-owned
Ownership Structure
deferred cash compensation directly linked to team
and firm strategies100%
Our Culture
2013 2014 2015
2016 2017
5
Investment Platform
Breadth of independent perspectives across asset classes
1. As of September 30, 2018. Firm assets under management (AUM) includes $106.2 billion in Equity assets, $135.4 billion in Fixed Income assets and $73.9 billion in Alternatives assets. Alternatives “AUM and Committed Capital” includes assets under management for non-Private Equity businesses and Committed Capital since inception for the Private Equity businesses. Committed Capital since inception reflects all contractual commitments, including those still in documentation, to fund investments, including those which have since been realized, advised by NB Alternatives Advisers LLC and its affiliates or predecessors (the oldest mandate of which was founded in 1981).
EQUITY FIXED INCOME ALTERNATIVES
AUM $315bn1
Investment
Professionals
$106bn
225
$135bn
179
Risk Parity
Global Tactical Asset Allocation
Global Relative & Absolute Return
Income Focused
Inflation Management
Liability Aware
$82bn AUM and Committed Capital
152
Quantitative Global
U.S.
Emerging Markets
Custom Beta
Risk Premia
Options
Global Macro
Commodities
Fundamental Global Investment Grade
Global Non-Investment Grade
Emerging Markets, Regional EM, China
Multi-Sector, Opportunistic
Municipals
Specialty Strategies
– CLO Mezzanine
– Currency
– Corporate Hybrids
Private Equity:
– Primaries
– Co-Investments
– Secondaries
– Specialty Strategies– Minority stakes in
alternative firms - Dyal
Alternative Credit:
– Private Credit
– Residential Loans
– Special Situations
Hedge Funds:
– Multi-Manager
– Equity Long/Short
– Credit Long/Short
– Event Driven
QuantitativeFundamental
MULTI-ASSET CLASS SOLUTIONS AND STRATEGIC PARTNERSHIPS
Integration of Environmental, Social and Governance Factors
Global, EAFE
U.S. Value, Core, Growth
Emerging Markets
Regional EM, China
Global Thematic, Disruptive Themes
Sustainable Equity
Income Strategies
– MLP
– REITs
6
FUND OVERVIEW
For Professional Client Use Only
Our Style of Multi Cap Equity
A DISTINCT APPROACH
• Comprehensive cash flow analysis is key to unlocking a company’s potential value:
Quantitative
Qualitative
Use of cash
Capital structure
• Seeks investments across three categories: special situations, opportunistic, and classic
DISCIPLINED BOTTOM-UP INVESTMENT PROCESS
• Deep fundamental research
• Rigorous valuation criteria and dynamic price limits
• Quality management with demonstrated record of building shareholder value
MULTI-FACETED RISK MANAGEMENT
• Security and portfolio level risk management
• Rigorous buy/sell process seeks to maximise upside potential, minimise downside risk
• Well-defined portfolio construction parameters
• Independent analysis from firm’s portfolio risk team
EXPERIENCED INVESTORS
• Senior Portfolio Manager Richard Nackenson has managed the strategy for over 15 years and has more than 25
years of industry experience
• Supported by a dedicated investment team
Invests across the
market cap spectrum
using an opportunistic
approach focused on
in-depth cash flow and
capital structure
analysis
_______________________This material is intended as a broad overview of the Portfolio Manager’s style, philosophy and process and is subject to change without notice. Portfolio Manager’s views may differ from those of other Portfolio Managers as well as the views of Neuberger Berman LLC.
8
For Professional Client Use Only
Investment Philosophy and Approach
Companies that require tailored,
specific valuation methodologies
and investment research
• Unrecognised recovery prospects
• Restructuring
• Post bankruptcy
• Spin-offs
• New management teams
• Initial public offerings
• Net asset value
• Shareholder activism
Companies with proven
management teams and consistent
long-term performance
• Consistent free cash flow
• High return on invested capital
• Financial stability
• Shareholder-oriented management
• Diversified sources of operating
income
Companies that have become
inexpensive for a tangible
reason that we believe is
temporary, not permanent
• High free cash flow yield
• Superior free cash flow growth
• Improving return on invested capital
• Balance sheet optimisation
• Misunderstood by the market
• “Underfollowed” companiesCLASSIC
SPECIAL
SITUATIONS
OPPORTUNISTIC
US Multi Cap
Opportunities
Fund
_______________________This material is intended as a broad overview of the Portfolio Manager’s style, philosophy and process and is subject to change without notice. Portfolio Manager’s views may differ from those of other Portfolio Managers as well as the views of Neuberger Berman LLC.
We believe that a disciplined and focused approach driven by fundamental research can uncover
investment opportunities across market capitalisation and style spectrums
9
For Professional Client Use Only
Accumulate Cash/
Reduce Debt
Reinvest
in
Core Business
Invest in
High Return
Expansion
Projects
Buy Back
Stock
Issue
Dividends
Pursue Selective
Acquisitions
Use of Free Cash Flow
How a company uses its free cash flow is a key factor in our decision making process
BUSINESS MODEL CAPITAL STRUCTURE
_______________________This material is intended as a broad overview of the Portfolio Manager’s style, philosophy and process and is subject to change without notice. Portfolio Manager’s views may differ from those of other Portfolio Managers as well as the views of Neuberger Berman LLC.
10
INVESTMENT PROCESS
For Professional Client Use Only
# of Securities
Investment Process Overview
Comprehensive, disciplined process focused on free cash flow analysis
IDEA
GENERATION
• Dedicated team
• Centralised firm
research resources
• Proprietary screens
• Field research network
IN-DEPTH
RESEARCH
• Determine performance
drivers:
Incorporate
company specific
analysis and field
research
• Detailed financial and
valuation models
COMPREHENSIVE
FREE CASH FLOW
ANALYSIS
• Quantitative
• Qualitative
• Uses of free cash flow
• Storehouse of
knowledge
INITIAL
INVESTMENT
UNIVERSE
• Publicly traded US
equities and related
securities and
American Depository
Receipts (ADRs)
across market
capitalisations and
sectors
• Filter on quantitative
and qualitative metrics
PORTFOLIO
CONSTRUCTION AND
ONGOING RISK
ANALYSIS
• Well-defined portfolio
construction guidelines
• Multi-faceted risk
management
FOCUSED
PORTFOLIO
Typically 30 – 40
Core Holdings
DISCIPLINED
BUY/SELL PROCESS
_______________________This material is intended as a broad overview of the Portfolio Manager’s style, philosophy and process and is subject to change without notice. Portfolio Manager’s views may differ from those of other Portfolio Managers as well as the views of Neuberger Berman LLC.
RISK MANAGEMENT
2,000+ 500 150 75 30 - 40
12
For Professional Client Use Only
Resources for Idea Generation
• Core proprietary research conducted by
dedicated investment team
• Focus on free cash flow, capital structure and
return on invested capital analysis
• Proprietary financial models and field research
network
NACKENSON GROUP RESOURCES
FIRM RESEARCH RESOURCES
_______________________This material is intended as a broad overview of the Portfolio Manager’s style, philosophy and process and is subject to change without notice. Portfolio Manager’s views may differ from those of other Portfolio Managers as well as the views of Neuberger Berman LLC.
Investment ideas
generated by portfolio
team with access to
centralised firm
resources
• Central global research department of 41
senior sector analysts and associates
• Host more than 1,500 meetings annually with
company management teams, analysts and
strategists
• Third party and specialised research
Idea
Generation
13
For Professional Client Use Only
In-depth Research
COMPREHENSIVE FREE CASH FLOW ANALYSIS
How do we arrive at a numerical value
for a company’s free cash flow?
Utilise proprietary valuation models
• Income statement
• Cash flow statement
• Balance sheet
• Quality of earnings
• Determine appropriate valuation
methodology
Analyse key metrics
• Free cash flow
• Return on invested capital (ROIC)
• Earnings growth
• Revenue growth
• Tangible book value
• Net asset value
USE OF
FREE CASH FLOW
QUALITATIVE ANALYSIS
OF FREE CASH FLOW
QUANTITATIVE ANALYSIS
OF FREE CASH FLOW
Analyse the quantitative and qualitative factors that influence core operating capabilities and
valuation
How do we evaluate the quality of a
company’s free cash flow?
Conduct field research
• Industry associations
• Customers and competitors
• Operating line managers
• Supply chain analysis
• Empirical data sources
Evaluate management experience
• Articulation of corporate strategy
• Implementation and execution
• Track record of results
Assess industry structure and
dynamics
• Sustainable competitive advantage
• Change and evolution
How does a company allocate its
free cash flow?
Business model
• Reinvest in core business
• Invest in high return expansion
projects
• Pursue selective acquisitions
Capital structure
• Accumulate cash / Reduce debt
• Buy back stock
• Issue dividends
21 3
_______________________This material is intended as a broad overview of the Portfolio Manager’s style, philosophy and process and is subject to change without notice. Portfolio Manager’s views may differ from those of other Portfolio Managers as well as the views of Neuberger Berman LLC.
14
For Professional Client Use Only
Portfolio Construction and Ongoing Risk Management
Construct multi cap core portfolio
• Diversified across three investment categories
(Special Situations, Opportunistic, Classic)
Select best ideas
• Consider risk/reward profile of each holding as well as
implications within the portfolio
Holdings and sector weightings
• 30 - 40 core holdings
• Invests across the market capitalisation spectrum
• Maximum initial position of 5%
• Maximum sector weighting ±15% versus benchmark
• Category allocation “soft caps” of 50% Special Situation,
50% Opportunistic, 50% Classic
• Cash weighting of 0-5%
Ongoing monitoring
• Automatic review if a position declines 10% relative to the
benchmark
• Tracking error target guideline: <5.0%
• Barra metrics used to measure and manage risk
• Review if management shifts strategy unexpectedly
• Review if research indicates deteriorating fundamentals
MULTI-FACETED RISK MANAGEMENTPORTFOLIO CONSTRUCTION GUIDELINES
_______________________This material is intended as a broad overview of the Portfolio Manager’s style, philosophy and process and is subject to change without notice. Portfolio Manager’s views may differ from those of other Portfolio Managers as well as the views of Neuberger Berman LLC.
MULTI-CAP
CORE PORTFOLIO
Research-based
Investment Process
Disciplined
Portfolio
Construction
Ongoing
Investigative
Monitoring
Dynamic Price
Limits
US MULTI CAP
OPPORTUNITIES
FUND
Research-based
Investment Process
Disciplined
Portfolio
Construction
Ongoing
Investigative
Monitoring
Dynamic Price
Limits
Our disciplined approach integrates proactive portfolio construction with comprehensive risk
management
15
For Professional Client Use Only
Disciplined Buy / Sell Process
BUY
• New ideas generated by our research process
• Portfolio construction
• Entry point based on price
Our approach to buying and selling portfolio holdings seeks to maximise upside potential while
minimising downside risk
BUY ADD
SELL REDUCE
REDUCE
• Position becomes large due to appreciation
• Approaching price target
• Raise capital to introduce new ideas
SELL
• Price target achieved
• Superior opportunities available
• Research indicates deteriorating fundamentals
• Limit downside
ADD
• Fundamentals and risk/reward improve
• Price target revised
• Larger position warranted
_______________________This material is intended as a broad overview of the Portfolio Manager’s style, philosophy and process and is subject to change without notice. Portfolio Manager’s views may differ from those of other Portfolio Managers as well as the views of Neuberger Berman LLC.
16
FUND PERFORMANCE & PORTFOLIO CHARACTERISTICS
For Professional Client Use Only
Fund Performance
_______________________Source: FactSet, Standard & Poor’s.The inclusion of any individual security in this document does not constitute a recommendation to invest.1. Representative of the USD Class I Accumulating share class, Net of Fees.2. Benchmark = S&P 500 Index.
PERFORMANCE (USD)
As of September 30, 2018
TOP 10 HOLDINGS %
Fund1 Benchmark2
1 Month 0.68% 0.57%
3 Month 7.46% 7.71%
YTD 8.72% 10.56%
1 Year 16.23% 17.91%
3 Years 16.98% 17.31%
5 Years 12.10% 13.95%
Since Inception (Ann) 15.83% 15.77%
Since Inception (TR) 150.70% 149.91%
Security Name Fund Sector
HCA Healthcare Inc. 5.38 Health Care
Berkshire Hathaway Inc. Class B 5.28 Financials
JPMorgan Chase & Co. 4.84 Financials
Motorola Solutions, Inc. 4.79 Information Technology
Alphabet Inc. Class C 4.43 Communication Services
Apple Inc. 4.27 Information Technology
US Foods Holding Corp. 4.01 Consumer Staples
CSX Corporation 3.82 Industrials
Stanley Black & Decker, Inc. 3.70 Industrials
Goldman Sachs Group, Inc. 3.70 Financials
18
For Professional Client Use Only
Fund Sector Weightings
_______________________Source: FactSet, Standard & Poor’s.Sector weightings are as of the date noted and are subject to change without notice. Weightings shown are equity only and excluding cash.
CURRENT SECTOR WEIGHTINGS
As of September 30, 2018
% of Total Market Value
6.4
2.6
5.8
2.7
27.4
10.0
17.2
18.8
9.1
0.0 0.0
10.0 10.3
6.76.0
13.3
15.0
9.7
21.0
2.4 2.7 2.8
0
5
10
15
20
25
30
CommunicationServices
ConsumerDiscretionary
Consumer Staples Energy Financials Health Care Industrials InformationTechnology
Materials Real Estate Utilities
NB US Multi Cap Opportunities Fund S&P 500 Index
19
For Professional Client Use Only
2.9
8.4
3.1
25.8
59.8
0.01.9
9.0
19.3
69.8
0
10
20
30
40
50
60
70
80
$0–5bn $5–10bn $10–20bn $20–50bn >$50bn
NB US Multi Cap Opportunities Fund S&P 500 Index
Fund Market Cap Allocation
_______________________Source: FactSet, Standard & Poor’s.Market cap weightings are as of the date noted and are subject to change without notice. Weightings shown are equity only and excluding cash.
FUND ALLOCATION VS. S&P 500 INDEX
As of September 30, 2018
% of Total Market Value
20
For Professional Client Use Only
Fund Top Holdings Compared to Benchmark (Quarterly)
_______________________Source: FactSet, Standard & Poor’s.The inclusion of any individual security in this document does not constitute a recommendation to invest.1. Holdings are subject to change, without notice.2. Benchmark = S&P 500 Index.
As of September 30, 2018
FUND TOP 10 HOLDINGS % BENCHMARK TOP 10 HOLDINGS %
Benchmark2 Fund1 Difference
Apple Inc. 4.21 4.27 0.06
Microsoft Corporation 3.57 1.53 -2.04
Amazon.com, Inc. 3.34 0.00 -3.34
Berkshire Hathaway Inc. Class B 1.70 5.28 3.59
Facebook, Inc. Class A 1.61 0.00 -1.61
JPMorgan Chase & Co. 1.54 4.84 3.30
Johnson & Johnson 1.51 0.00 -1.51
Alphabet Inc. Class C 1.50 4.43 2.94
Alphabet Inc. Class A 1.47 0.00 -1.47
Exxon Mobil Corporation 1.46 0.00 -1.46
Fund1 Benchmark2 Difference
HCA Healthcare Inc. 5.38 0.15 5.23
Berkshire Hathaway Inc. Class B 5.28 1.70 3.59
JPMorgan Chase & Co. 4.84 1.54 3.30
Motorola Solutions, Inc. 4.79 0.09 4.70
Alphabet Inc. Class C 4.43 1.50 2.94
Apple Inc. 4.27 4.21 0.06
US Foods Holding Corp. 4.01 0.00 4.01
CSX Corporation 3.82 0.25 3.58
Stanley Black & Decker, Inc. 3.70 0.09 3.61
Goldman Sachs Group, Inc. 3.70 0.32 3.38
21
HISTORICAL CATEGORY, CAPITALISATION & SECTOR WEIGHTINGS
For Professional Client Use Only
Investment category allocations change actively as a function of the market environment
Historical Investment Category Weightings
Special Situations
Max 38% (4Q 2016)
Min 14% (4Q 2009)
Opportunistic
Max 50% (4Q 2010)
Min 24% (1Q 2018)
Classic
Max 44% (3Q 2018)
Min 27% (1Q 2012)
_______________________ Source: FactSet and Neuberger Berman. Data quoted refers to a representative account, and is included for illustrative purposes only and will not necessarily accurately represent the intended portfolio.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Dec 2009 Dec 2010 Dec 2011 Dec 2012 Dec 2013 Dec 2014 Dec 2015 Dec 2016 Dec 2017
23
For Professional Client Use Only
Historical Market Capitalization Weightings
Market capitalization weightings change actively as a function of the market environment
_______________________ Source: FactSet and Neuberger Berman. Data quoted refers to a representative account, and is included for illustrative purposes only and will not necessarily accurately represent the intended portfolio.
$0-5 Billion
Max 24% (1Q 2012)
Min 7% (3Q 2014)
$5-20 Billion
Max 46% (3Q 2013)
Min 17% (4Q 2015)
>$50 Billion
Max 51% (2Q 2018)
Min 19% (1Q 2012)
$20-$50 Billion
Max 27% (3Q 2016)
Min 8% (3Q 2013)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Dec 2009 Dec 2010 Dec 2011 Dec 2012 Dec 2013 Dec 2014 Dec 2015 Dec 2016 Dec 2017
24
For Professional Client Use Only
Historical Sector Weightings
Sector weightings change actively as a function of the market environment
Consumer Staples
Utilities
Industrials
Consumer
Discretionary
Financials
Health Care
Info. Tech
Materials
Energy
_______________________ Source: FactSet and Neuberger Berman. Data quoted refers to a representative account, and is included for illustrative purposes only and will not necessarily accurately represent the intended portfolio.
Communication
Services
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Dec 2009 Dec 2010 Dec 2011 Dec 2012 Dec 2013 Dec 2014 Dec 2015 Dec 2016 Dec 2017
25
BIOGRAPHIES & TEAM STRUCTURE
For Professional Client Use Only
Portfolio Manager
Richard S. Nackenson is a Managing Director of Neuberger Berman and Senior Portfolio Manager
for the Neuberger Berman US Multi Cap Opportunities Fund. He joined the firm in 1999. Previously,
Richard was a Securities Analyst with Appaloosa Management focusing on global investing across
capital structures and industry sectors. He was a Senior Research Analyst with Pzena Investment
Management and also an Associate with James D. Wolfensohn Incorporated. He began his career
with McKinsey & Company. Richard earned both a BS, summa cum laude, and an MBA from the
Wharton School at the University of Pennsylvania. He has 27 years of industry experience.
Compelling valuations and strong cash flow generation at the company level are
providing an attractive backdrop for equity investing. We believe we are in a stock
picker’s market where stock selection becomes the key driver of portfolio returns.
—Richard S. Nackenson,
US Multi Cap Opportunities Fund
Dedicated investment team headed by Richard S. Nackenson
_______________________Staffing is subject to change without notice. As of September 30, 2018.
27
For Professional Client Use Only
Team Structure
Cohesive team of dedicated investment professionals supported by centralized global resources
_______________________Staffing is subject to change without notice. As of September 30, 2018. Forty-one Research Analysts and Associates in total.
Richard Nackenson, Senior Portfolio Manager
• Founder and creator of the Strategy
• Broad experience across investment disciplines,
including deep value and distressed credit
• McKinsey background provides unique perspective on
corporate strategies and business models
MULTI CAP OPPORTUNITIES TEAM
Securities Analysts
• 3 securities analysts focused on bottom-up
research
• Responsibilities across Classic, Opportunistic,
and Special Situations
Portfolio Administration
• 1 business manager
• 2 dedicated traders
• 2 portfolio analysts
Global Equity Research Department1
• 35 sector-based analysts; senior analysts have an
average of 22 years industry experience
• Cover over 1,000 companies, representing the Russell
1000 Index and ~70% of the MSCI ACWI Index by
market cap
• Host over 1,500 company and analyst meetings annually
CENTRALIZED RESOURCES
Global Trading Desk
• Centralized trading desk with fully automated
global electronic platform
• 24/7 access to more than 70+ equity markets
and 80 execution counterparties
Risk Oversight and Portfolio Analysis
• 25+ member risk management team
• Charged with identifying and mitigating
investment and operational risk
28
CASE STUDIES
For Professional Client Use Only
$1,503
$3,192
$1,750
$2,397
$2,751
$2,051$1,138 $15,282
$500
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
Share
Buyback
Special
Dividend
($6.50/sh)
Share
Buyback
Share
Buyback
Share
Buyback
Share
Buyback
Share
Buyback
Share
Buyback &
Dividend
Cumulative
Return
Millions
STEADY ADMISSION TRENDS & REVENUE GROWTH
SUBSTANTIAL CAPITAL RETURN TO SHAREHOLDERS
Case Study: HCA Healthcare (HCA)
Business
• HCA is the largest for-profit hospital system in the United States,
operating over 175 hospitals and 100 surgery centers
Investment Rationale
• Substantial beneficiary of recent US tax law changes
• Access to Care initiative allows HCA to grow its market share in
core markets
• Consistent operating income and free cash flow profile
• Proven management team with a strong commitment to
shareholder return
Capital Allocation
• Issued three special dividends in 2012, totaling $6.50 per share,
a 22.3% effective yield
• Refinanced high-cost debt in March 2014, resulting in
approximately $70 Million of annual interest cost savings
• HCA repurchased $2.4 Billion of its stock in 2015, $2.8 Billion in
2016 and $2.1 Billion in 2017
• Company has a full pipeline of acquisition candidates and
announced strategic acquisitions in 2017 and 2018
• Initiated its first regular quarterly dividend since its 2011 IPO
Valuation
• Price-to-Earnings: 13.9x 2019E
• EV/EBITDA: 8.7x 2019E
Special Situation investment (Market Cap = $48.1bn)
_______________________Source: FactSet; Company Reports. All information as of September 30, 2018. For illustrative purposes only. The inclusion of any individual security in this document does not constitute a recommendation to invest.*Estimated dividend payout in the fourth quarter of 2012, based on 1Q 2012 dividend payout amount. ** 3Q17 admissions and revenue growth adjusted for one-time event related to hurricanes
-2%
0%
2%
4%
6%
8%
10%
4Q13 1Q142Q143Q144Q141Q15 2Q153Q154Q151Q162Q163Q164Q16 1Q172Q173Q17**4Q171Q18 2Q18
Adjusted Admissions Growth Revenue Growth
2011 2012 2013 2014 2015 2016 2017 1H 2018
30
For Professional Client Use Only
Independent Restaurant Case Growth Remains Strong
Case Study: US Foods Holding Corp. (USFD)
Special Situation investment (Market Cap = $6.7 Bn)
Business
• Second largest US food distributor
• One of only two foodservice distributors with a national footprint
Investment Rationale
• Profits are slated to grow as food inflation has returned after a
prolonged deflationary period
• Margin expansion potential as company focuses on more
profitable independent restaurants, private label products and
restructures its field organization
• Continued strength in independent restaurant case volume
• Best-in-class E-commerce platform, which accounts for over two-
thirds of sales
Capital Allocation
• Continues to successfully acquire accretive bolt-on food
distributors in highly fragmented industry
• Repurchased 10 million shares in November 2017. First share
repurchase since initial public offering in May 2016
• Announced the acquisition of SGA Food Group which will allow
US Foods to expand in the Pacific Northwest region and complete
its national footprint
Valuation
• EV/EBITDA: 8.3x 2019E
• FCF Yield: 8.8% 2019E
2.5%4.0% 4.4% 4.7%
8.0%6.8%
5.4%6.1%
4.0%4.7%
6.0%7.1%
4.3% 3.8%
0%
2%
4%
6%
8%
10%
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18
Year-Over-Year Growth
3.8% 3.8%4.2%
4.4% 4.5%4.8%
2.0%
3.0%
4.0%
5.0%
2014 2015 2016 2017 2018E 2019E
Margin Growth
EBITDA Margin
_______________________Source: FactSet; Company Reports. All information as of September 30, 2018. For illustrative purposes only. The inclusion of any individual security in this document does not constitute a recommendation to invest.
31
For Professional Client Use Only
Case Study: Boeing (BA)
Business
• Boeing offers products and services in both the aerospace (70% of
sales) and the defense (30% of sales) industries
Duopolistic aerospace industry provides stable pricing dynamics
Defense business focused on higher-value verticals, and
generates ~1/3 of revenues internationally
Investment Rationale
• Long-cycle business provides visible earnings stream: total
contracted backlog valued at $464 Billion
• Significant cash flow growth as aircraft production rates increase,
R&D expenses decline, and working capital needs lessen
• Company has a multi-year technological advantage over
competitors due to the development of the 787
Capital Allocation
• Strong balance sheet; potential for continued significant return of
capital to shareholders
• Increased annual dividend over 250% since 2013
• In December 2017, authorized an $18 Billion share repurchase plan
to be completed over the next 24 to 30 months. Boeing repurchased
$9.2 Billion worth of its shares in 2017
Valuation
• Price-to-Free Cash Flow 14.3x 2019E
• EV/EBITDA: 13.9x 2019E
Classic investment (Market Cap = $213.7bn)
_______________________Source: FactSet; Company Reports. All information as of September 30, 2018. For illustrative purposes only. The inclusion of any individual security in this document does not constitute a recommendation to invest.
CONTRACTED BACKLOG
$250$275$300$325$350$375$400$425$450$475$500
1Q 1
2
2Q 1
2
3Q 1
2
4Q 1
2
1Q 1
3
2Q 1
3
3Q 1
3
4Q 1
3
1Q14
2Q14
3Q14
4Q14
1Q15
2Q15
3Q15
4Q15
1Q16
2Q16
3Q16
4Q16
1Q17
2Q17
3Q17
4Q17
1Q18
2Q18
Billions
STEP-UP IN FREE CASH FLOW AS PRODUCTION RATES
INCREASE AND DEVELOPMENT COSTS DECLINE
$2.75
$26.10
$2.00$4.00$6.00$8.00
$10.00$12.00$14.00$16.00$18.00$20.00$22.00$24.00$26.00$28.00
2011 2019E
32% CAGR
32
For Professional Client Use Only
EFFECTIVE ALLOCATION OF CAPITAL
1.1 1.30.9
1.3 1.2 1.11.9 2.0
6.0
0.2
5.9
1.2
0.20.20.10.5
1.1 0.91.1
$0.0
$2.0
$4.0
$6.0
2009 2010 2011 2012 2013 2014 2015 2016 2017
Billions
Av ailable Free Cash Flow Shareholder Return (Buy back & Div idend) Accretiv e Acquisition
PROFITABILITY INCREASING
Case Study: Activision Blizzard (ATVI)
Business
• Best franchises in the video game industry: Call of Duty, Candy
Crush, World of Warcraft, Skylanders, Destiny, Overwatch
Investment Rationale
• Consistent and recurring cash flow from Call of Duty, Skylanders,
Candy Crush and its subscription based World of Warcraft
franchise
• Improving margins as business shifts to digital sales
• Introduction of new franchises, mobile games, advertising
opportunities, and “esports” initiatives all should support growth
• Management is aligned with shareholders as CEO / Chairman
has significant investment in ATVI shares
Capital Allocation
• In 2013, completed a major share buyback from Vivendi,
reducing total outstanding shares by 38.5% and significantly
reducing Vivendi’s ownership position
• In February 2016, Activision completed the acquisition of King
Digital Entertainment (Developer/Publisher of Candy Crush
Saga) which was approximately 30% accretive to pro forma
earnings
Valuation
• Price-to-Earnings: 27.4x 2019E
• EV/EBITDA: 19.3x 2019E
Added to S&P 500 in August 2015
Special Situation investment Classic investment (Market Cap = $63.4bn)
_______________________Source: FactSet; Company Reports. All information as of September 30, 2018. For illustrative purposes only. The inclusion of any individual security in this document does not constitute a recommendation to invest.
31.2%31.7% 31.7%
35.4%
33.5%34.3%
36.5%
30%
32%
34%
36%
38%
2013 2014 2015 2016 2017 2018E 2019E
Operating Margin (Non-GAAP)
Accretive
share buyback from
Vivendi in 2013
Accretive
Acquisition
33
For Professional Client Use Only
Case Study: Hanesbrands Inc. (HBI)
Business
• Global consumer goods company with leading apparel brands
• Limited fashion risk mitigates key retail risk factor
• Global manufacturing capability provides cost advantage
Investment Rationale
• Initial investment thesis focused on under-recognized earnings
and free cash flow potential due to a sharp rise in cotton cost
• Normalization of cotton costs, coupled with improved price/mix
from the company’s Innovate-to-Elevate program drove operating
profitability higher
Capital Allocation
• Followed through on commitment to debt pay-down through 2013
HBI reduced net leverage from 4.3x to 2.2x
Interest cost reduction accretive to earnings and cash flow
• Initiated dividend of $0.80 per share in 2013; increased dividend
by 50% in January 2014 to $1.20 per share (1.1% yield)
• Completed the acquisition of Maidenform, DBApparel and Knights
Apparel, all accretive to earnings and cash flow
Valuation
• Price-to-Earnings: 9.7x 2019E
• EV/EBITDA: 9.6x 2019E
Added to S&P 500 in March 2015
Opportunistic investment (Market Cap = $6.6bn)
IMPRESSIVE EARNINGS PER SHARE GROWTH
LIFECYCLE OF INVESTMENT
$0
$25
$50
$75
$100
$125
$150
Mar
-11
Jun-
11
Sep
-11
Dec
-11
Mar
-12
Jun-
12
Sep
-12
Dec
-12
Mar
-13
Jun-
13
Sep
-13
Dec
-13
Mar
-14
Jun-
14
Sep
-14
Dec
-14
Mar
-15
Jun-
15
Sep
-15
Share price (pre-split basis)
$0.67 $0.65
$0.98
$1.42$1.66
$1.85 $1.93
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
2011 2012 2013 2014 2015 2016 2017
Initiated
HBI
Position
Exited HBI
PositionAcquired
DB Apparel
Acquired
MaidenForm
Initiated
Dividend
Acquired
Knights
Apparel
Completed Debt
Pay-down
Added to
S&P 500
_______________________Source: FactSet; Company Reports. All information as of September 30, 2018. For illustrative purposes only. The inclusion of any individual security in this document does not constitute a recommendation to invest.
34
For Professional Client Use Only
Case Study: Great Wolf Resorts (WOLF)
Business
• Indoor waterpark resort owner and operator delivering a fully-
integrated, branded vacation experience
Investment Rationale
• Over-levered / under-followed stock created a special
situation opportunity
• Net debt/EBITDA >6.5x, Free Cash Flow Yield >25%
• Property visits and due diligence reinforced our view that
EBITDA could grow, and debt level was manageable
• Lack of new supply in lodging industry supported our thesis of
RevPar growth
• Majority of debt was tied directly to properties with little recourse
back to the parent
Capital Allocation
• Cash flow used for debt reduction; covenants significantly limited
management’s ability to spend Free Cash Flow
Valuation
• EV/EBITDA: 7.0x vs. 9.0x for theme park operators and 10.0–
12.0x for lodging companies
Special Situation investment (Market Cap = $0.2bn)
_______________________Source: FactSet; Company Reports. All information as of September 30, 2018. For illustrative purposes only. The inclusion of any individual security in this document does not constitute a recommendation to invest.
LIFECYCLE OF INVESTMENT
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
$9.00
Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12
Price
WOLF
Delisted
Initiated
WOLF
Position
35
For Professional Client Use Only
Case Study: Great Wolf Resorts (WOLF) (Continued)
Deal timeline
_______________________Source: FactSet; Company Reports. All information as of September 30, 2018. For illustrative purposes only. The inclusion of any individual security in this document does not constitute a recommendation to invest.
$3.50
$4.00
$4.50
$5.00
$5.50
$6.00
$6.50
$7.00
$7.50
$8.00
$8.50
Ma
rch
1,
20
12
Ma
rch
6,
20
12
Ma
rch
11
, 2
01
2
Ma
rch
16
, 2
01
2
Ma
rch
21
, 2
01
2
Ma
rch
26
, 2
01
2
Ma
rch
31
, 2
01
2
Ap
ril 5
, 2
01
2
Ap
ril 1
0,
20
12
Ap
ril 1
5,
20
12
Ap
ril 2
0,
20
12
Ap
ril 2
5,
20
12
Ap
ril 3
0,
20
12
Price
March 13, 2012
WOLF / Apollo
issue joint press
release
announcing
$5.00/sh
transaction
March 14, 2012
R.Nackenson quoted in WSJ
article, “Great Wolf Investors
Howl for Higher Bid.”
March 22, 2012
R.Nackenson quoted
in Bloomberg article,
“Leon Black’s Bid
Gets No Respect as
Great Wolf Surges:
Real M&A.”
April 04, 2012
KSL submits
$6.25/sh rival
bid
April 06, 2012
WOLF / Apollo
issue joint press
release announcing
$6.75/sh revised
offer
April 08, 2012
KSL submits
$7.00/sh bid
April 18, 2012
WOLF / Apollo issue
joint press release
announcing
agreement on
$7.00/sh offer
April 19, 2012
KSL submits
$7.25/sh bid
April 20, 2012
WOLF / Apollo issue
joint press release
announcing
agreement on
$7.85/sh offer KSL
notifies company they
will not bid further
May 04, 2012
Deal Complete;
stock delisted
36
LONG-TERM PERFORMANCE & SUMMARY TERMS
For Professional Client Use Only
Multi Cap Opportunities Composite
Annualized Rates of Return – As of September 30, 2018
Past performance is no guarantee of future results.Please see attached important disclosures which contain complete performance information and definitions.
¹ Periods less than 1 year are not annualized.
Annualized Rates of Return¹ (%, for periods ended September 30, 2018)
3Q 2018 YTD 1 Year 3 Years 5 Years
Since Inception
(1/1/2010)
Total Portfolio Return (Gross of Fee) 7.74 9.62 17.49 18.36 13.49 15.04
S&P 500 Index 7.71 10.56 17.91 17.31 13.95 13.96
38
For Professional Client Use Only
Multi Cap Opportunities Composite
Calendar Year Rates of Return
Past performance is no guarantee of future results.Please see attached important disclosures which contain complete performance information and definitions.
Annual Rates of Return (%, for periods ended December 31)
Total Portfolio Return
(Gross of Fee) S&P 500 Index
2017 25.50 21.83
2016 14.06 11.96
2015 -0.22 1.38
2014 7.22 13.69
2013 44.14 32.39
2012 21.09 16.00
2011 1.20 2.11
2010 14.89 15.06
39
For Professional Client Use Only
Multi Cap Opportunities Composite (Inception 1/1/2010)
Investment Performance Results – As of September 30, 2018
Past performance is no guarantee of future results.Please see attached important disclosures which contain complete performance information and definitions.
Composite Benchmark Composite 3 Year Standard Deviation
Total Return
(%, Gross
of Fees)
Total Return
(%, Net
of Fees)
S&P 500 Index
(%)
No. of
Accounts
Market Value
($, m)
Total Firm
Assets
($, bn)
% of Firm
Assets
Internal
Dispersion
Composite
(%)
S&P 500 Index
(%)
YTD Sep-
20189.62 8.95 10.56 ≤ 5 3,286.0 -- -- -- 9.39 9.05
2017 25.50 24.38 21.83 ≤ 5 3,171.8 295.2 1.07 -- 10.88 9.92
2016 14.06 13.05 11.96 ≤ 5 2,765.8 255.2 1.08 -- 11.43 10.59
2015 -0.22 -1.11 1.38 ≤ 5 3,614.4 240.4 1.50 -- 11.89 10.47
2014 7.22 6.27 13.69 ≤ 5 4,966.7 250.0 1.99 -- 10.38 8.97
2013 44.14 42.92 32.39 ≤ 5 3,325.4 241.7 1.38 -- 13.44 11.94
2012 21.09 20.07 16.00 ≤ 5 684.6 205.0 0.33 -- 15.33 15.09
2011 1.20 0.34 2.11 ≤ 5 120.3 193.1 0.06 -- -- --
2010 14.89 13.92 15.06 ≤ 5 67.0 102.3 0.07 -- -- --
40
For Professional Client Use Only
Multi Cap Opportunities Composite
Investment Performance Disclosure Statement
Compliance Statement• Neuberger Berman Group LLC ("NB", "Neuberger Berman" or the "Firm") claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS® standards. Neuberger
Berman was independently verified for the period January 1, 2011 to December 31, 2016. The GIPS® firm definition was redefined effective January 1, 2011. For prior periods there were two separate firms for GIPS® firm definition purposes and such firmswere independently verified for the periods January 1, 1997 to December 31, 2010 and January 1, 1996 to December 31, 2010, respectively. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS® standards on a firm-wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS® standards. The Multi-Cap Opportunities Composite has been examined for the periods January 1, 2014 to December 31, 2016. The verification and performance examination reports are available upon request.
Definition of the Firm• The firm is currently defined for GIPS® purposes as Neuberger Berman Group LLC, ("NB", "Neuberger Berman" or the "Firm"), and includes the following subsidiaries: Neuberger Berman Investment Advisers LLC, Neuberger Berman Europe Ltd., Neuberger
Berman Asia Ltd., Neuberger Berman East Asia Ltd., Neuberger Berman Singapore Pte. Ltd., Neuberger Berman Taiwan Ltd, Neuberger Berman Australia Pty. Ltd., Neuberger Berman Trust Company N.A., Neuberger Berman Trust Company of Delaware N.A. and NB Alternatives Advisers LLC.
Policies• Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.Composite Description• The Multi-Cap Opportunities Composite (the "Composite") includes the performance of fee-paying Multi-Cap Opportunities portfolios with no minimum investment managed by the Nackenson Group. The Multi-Cap Opportunities strategy is designed for
investors who seek to participate in a portfolio of equity securities diversified across market capitalization and style. The portfolio consists of three distinct investment categories - Special Situation, Opportunistic, and Classic - designed to mitigate risk, while generating alpha through stock selection. The Composite was created in May 2013 and the performance inception date is January 2010. A complete list of Neuberger Berman's composites is available upon request.
Primary Benchmark Description• The benchmark is the S&P 500 Index (the "Index"). The index is a capitalization weighted index comprised of 500 stocks chosen for market size, liquidity, and industry group representation. The S&P 500 Index is constructed to represent a broad range of
industry segments in the U.S. economy. The S&P 500 Index focuses on the large-cap segment of the market with over 80% coverage of US equities. Criteria for inclusion include financial stability (minimize turnover in the index), screening of common shares to eliminate closely held companies, and trading activity indicative of ample liquidity and efficient share pricing. Companies in merger, acquisition, leveraged-buy-outs, bankruptcy (Chapter 11 filing or any shareholder approval of recapitalization which changes a company's debt-to-equity ratio), restructuring, or lack of representation in their representative industry groups are eliminated from the index.
Reporting Currency• Valuations are computed and performance is reported in U.S. Dollars.Fees• Composite Gross of Fee returns are the return on investments reduced by any trading expenses incurred during the period. Composite Net of Fee returns are the Gross of Fee returns reduced by investment advisory fees.Fee Schedule• The annual investment advisory fee, generally payable quarterly, is as follows: 0.80% on the first $100mn; 0.70% on the next $150mn; 0.65% thereafter. Internal Dispersion• Internal dispersion is calculated using the asset-weighted standard deviation of annual gross returns of those portfolios that were in the Composite for the entire year. Internal dispersion is not calculated if the Composite does not contain at least 6 portfolios
for the entire year.Annualized Standard Deviation• The three-year annualized standard deviation measures the variability of the Composite and the benchmark returns over the preceding 36-month period. The standard deviation is not required for periods prior to 2011.
41
For Professional Client Use Only
Fund Summary Terms – Neuberger Berman US Multi Cap Opportunities Fund
Daily liquid UCITS Fund
Investment Manager Neuberger Berman Europe Limited
Vehicle / Structure
Irish-domiciled fund
Authorised by the Central Bank of Ireland
UCITS
Independent Board members
Daily Liquidity
Domicile Dublin
Inception Date June 28th, 2012
Fees Class I USD Acc: 0.85%
Maximum TER Class I USD Acc: 1.15%
Minimum Subscription Class I USD Acct: USD 2,500,000
Fund Codes ISIN: IE00B7XCGB41
Administrator BBH
Benchmark S&P 500 Index
Base Currency USD
_______________________Fees as latest available Prospectus. Please check with your Neuberger Berman representative to see if these share classes are available at this time.
42
DISCLAIMER
For Professional Client Use Only
Additional Disclosures
Institutional-Oriented Equity and Fixed Income AUM Benchmark Outperformance Note: Institutional-oriented equity and fixed income assets under management (“AUM”) includes the firm’s equity and fixed
income institutional separate account (“ISA”), registered fund, and managed account/wrap (“MAG”) offerings and are based on the overall performance of each individual investment offering against its
respective benchmark offerings and are based on the overall performance of each individual investment offering against its respective benchmark. High net worth/private asset management (“HNW”) AUM
is excluded. For the period ending December 31, 2017, the percentage of total institutional-oriented equity AUM outperforming the benchmark was as follows: 10-year: 89%; 5-year: 76%; and 3-year: 79% ;
and total institutional-oriented fixed income AUM outperforming was as follows: 10-year:76%; 5-year:61%; and 3-year: 66%. If HNW AUM were included, total equity AUM outperforming the benchmark was
as follows: 10-year: 64%; 5-year: 52%; and 3-year: 54%; and total fixed income AUM outperforming was as follows: 10-year: 76%; 5-year: 62%; and 3-year: 65%. Equity and Fixed Income AUM
outperformance results are asset weighted so individual offerings with the largest amount of assets under management have the largest impact on the results. As of 12/31/2017, five institutional-oriented
equity offerings accounted for approximately 50% of the total firm institutional-oriented equity AUM reflected, and eight institutional-oriented fixed income offerings accounted for approximately 51% of the
total firm institutional-oriented fixed income AUM reflected. Performance for the individual offerings reflected are available upon request. AUM for multi-asset class, balanced and alternative (including long-
short equity or fixed income) offerings, as well as AUM for hedge fund, private equity and other private investment vehicle offerings are not reflected in the AUM outperformance results shown. AUM
outperformance is based on gross of fee returns. Gross of fee returns do not reflect the deduction of investment advisory fees and other expenses. If such fees and expenses were reflected, AUM
outperformance results would be lower. Investing entails risk, including possible loss of principal. Past performance is no guarantee of future results.
Private Equity Outperformance Note: The performance information includes all funds, both commingled and custom, managed by NB Alternatives Advisers LLC with vintage years of 2005 – 2015, with the
exception of a closed-end, public investment company registered under the laws of Guernsey (the “Funds”). Accounts that are only monitored are excluded. Vintage years post 2015 are excluded as
benchmark information is not yet available. Please note that private debt funds are also excluded as benchmark data is not yet available for the applicable vintages.
Percentages are based on the number of funds, calculated as the total number of funds whose performance exceeds their respective benchmarks divided by the total number of all funds with vintage years of
2005 through 2015. Performance is measured by net IRR, MOIC, and DPI and is compared to the respective index’s median net IRR, MOIC and DPI, respectively. The Cambridge Secondary Index was
used for secondary-focused funds; the Cambridge Buyout and Growth Equity for US and Developed Europe was used for co-investment-focused funds; the Cambridge Fund of Funds Index was used for
commingled funds and custom portfolios comprised of primaries, secondaries and co-investments; and the Cambridge Global Private Equity was used for strategies focused on minority stakes in asset
managers fund and healthcare credit.
The Cambridge Associates LLC indices data is as of March 31, 2017, which is the most recent data available. The Cambridge Associates Fund of Funds Index is the benchmark recommended by the CFA
Institute for benchmarking overall private equity fund of funds performance. The benchmark relies on private equity funds self-reporting data for compilation and as such is subject to the quality of the data
provided. The median net multiple of Cambridge Associates Fund of Funds Index is presented for each vintage year as of March 31, 2017, the most recent available. Cambridge Associates data provided at
no charge.
While one of the secondary funds closed in 2008, Cambridge Associates classifies that particular fund as a 2007 vintage year fund (the year of its formation) and, therefore, the Cambridge Associates
benchmarks used herein are for 2007 vintage year funds.
Private Offerings: Certain strategies referenced herein may only be available through a private offering of interests made pursuant to offering and subscription documents, which will be furnished solely to
qualified investors on a confidential basis at their request for their consideration in connection with an offering. These documents will contain information about the investment objective, terms and conditions
of an investment in such vehicle and will also contain tax information and risk disclosures that are important to an investment decision. Any decision to invest in such vehicle should be made after a careful
review of these documents, the conduct of such investigations as an investor deems necessary or appropriate and after consultation with legal, accounting, tax and other advisors in order to make an
independent determination of the suitability and consequences of an investment in such vehicle.
44
For Professional Client Use Only
DisclaimerThis document is addressed to professional clients only.
This document is a financial promotion and is issued by Neuberger Berman Europe Limited, which is authorised and regulated by the Financial Conduct Authority and is registered in
England and Wales, at Lansdowne House, 57 Berkeley Square, London, W1J 6ER and is also a Registered Investment Adviser with the Securities and Exchange Commission in the U.S.
and regulated by the Dubai Financial Services Authority.
This fund is a sub-fund of Neuberger Berman Investment Funds PLC, authorised by the Central Bank of Ireland pursuant to the European Communities (Undertaking for Collective
Investment in Transferable Securities) Regulations 2011, as amended. The information in this document does not constitute investment advice or an investment recommendation and is
only a brief summary of certain key aspects of the fund. Investors should read the prospectus and the key investor information document (KIID) which are available on our website:
www.nb.com/europe/literature. Investment objectives, risk information, fees and expenses and other important information about the fund can be found in the prospectus.
Notice to investors in Switzerland: Neuberger Berman Investment Funds plc is established in Ireland as an investment company with variable capital incorporated with limited liability
under Irish law, and the sub-funds are also authorised by the Swiss Financial Market Supervisory Authority FINMA for distribution to non-qualified investors in and from Switzerland. The
Swiss representative and paying agent is BNP Paribas Securities Services, Paris, succursale de Zurich, Selnaustrasse 16, 8002 Zürich, Switzerland. The prospectus, the key investor
information documents, the memorandum and articles of association and the annual and semi-annual reports are all available free of charge from the representative in Switzerland.
This document is presented solely for information purposes and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security.
We do not represent that this information, including any third party information, is complete and it should not be relied upon as such.
No recommendation or advice is being given as to whether any investment or strategy is suitable for a particular investor. Each recipient of this document should make such
investigations as it deems necessary to arrive at an independent evaluation of any investment, and should consult its own legal counsel and financial, actuarial, accounting, regulatory
and tax advisers to evaluate any such investment.
It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable.
Any views or opinions expressed may not reflect those of the firm as a whole.
All information is current as of the date of this material and is subject to change without notice.
The fund described in this document may only be offered for sale or sold in jurisdictions in which or to persons to which such an offer or sale is permitted. The fund can only be promoted
if such promotion is made in compliance with the applicable jurisdictional rules and regulations. This document and the information contained therein may not be distributed in the US.
Indices are unmanaged and not available for direct investment.
An investment in the fund involves risks, with the potential for above average risk, and is only suitable for people who are in a position to take such risks. For more information please
read the prospectus which can be found on our website at: www.nb.com/europe/literature.
Past performance is not a reliable indicator of current or future results. The value of investments may go down as well as up and investors may not get back any of the amount invested.
The performance data does not take account of the commissions and costs incurred on the issue and redemption of units.
The value of investments designated in another currency may rise and fall due to exchange rate fluctuations in respect of the relevant currencies. Adverse movements in currency
exchange rates can result in a decrease in return and a loss of capital.
Tax treatment depends on the individual circumstances of each investor and may be subject to change, investors are therefore recommended to seek independent tax advice.
Investment in the fund should not constitute a substantial proportion of an investor’s portfolio and may not be appropriate for all investors. Diversification and asset class allocation do not
guarantee profit or protect against loss.
No part of this document may be reproduced in any manner without prior written permission of Neuberger Berman Europe Limited.
The “Neuberger Berman” name and logo are registered service marks of Neuberger Berman Group LLC.
© 2018 Neuberger Berman Group LLC. All rights reserved. M 148053
45