Neuberger Berman China Equity Opportunities Fund berman...launched the Greater China Equity strategy...

Neuberger Berman China Equity Opportunities FundSeptember 2018

For Professional Client Use Only

For Professional Client Use OnlyFor Professional Client Use Only

I. Firm Overview

II. Neuberger Berman China Equity Opportunities Fund

III. Investment Team

IV. Appendices

I. Team Biographies

Table of Contents

1

FIRM OVERVIEW

Employee-Owned Investment Manager

Partnering with clients to achieve their unique objectives

Long-term Outperformance2Alignment of Interests

Portfolio managers invest alongside clients

Breadth of Independent Perspectives

601 investment professionals1 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

90%Institutional-oriented equity

Percentage of institutional-oriented AUM outperforming

benchmark since inception ended June 30, 2018

95%Institutional-oriented fixed income

Percentage of institutional-oriented AUM outperforming

benchmark since inception ended June 30, 2018

74%

Private equity

Percentage of NB Private Equity funds raised between

2005 – 2015 (since inception performance)

outperforming benchmark Net IRR

Deep Resources

Extensive fundamental research, access to management,

innovative ESG research, and sophisticated risk management

1. As of August 31, 2018.2. 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 75% for equities and 84% 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, public and private indices data is as of December 31, 2017. 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.

3

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

4

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwi4nP-UvfrLAhXCJh4KHTelByYQjRwIBw&url=https://www.trsretire.com/industry_awards.jsp&bvm=bv.118443451,d.dmo&psig=AFQjCNFS3swgy264EL-T9uAUy7LzUMo8Og&ust=1460048075527346

Investment Platform

Breadth of independent perspectives across asset classes

1. As of June 30, 2018. Firm assets under management (AUM) includes $103.3 billion in Equity assets, $132.2 billion in Fixed Income assets and $68.9 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).2. As of August 31, 2018.

EQUITY FIXED INCOME ALTERNATIVES

AUM $304bn1

Investment

Professionals2

$103bn

228

$132bn

176

Risk Parity

Global Tactical Asset Allocation

Global Relative & Absolute Return

Income Focused

Inflation Management

Liability Aware

$77bn 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

5

NEUBERGER BERMAN CHINA EQUITY OPPORTUNITIES FUND


Investment Philosophy

“Investing in Change”

INVEST IN

CHANGE

• Look for companies in

industries with

changing dynamics

• Identify tomorrow’s

winners

INVEST WITH

CONVICTION

• Build a concentrated,

high conviction

portfolio

• Know what you own

• Benchmark agnostic

• High Active Share

LONG INVESTMENT

HORIZON

• Change doesn’t

happen overnight

• Holding Period: 2-5

years

Bin Yu, Managing Director, joined the firm in 2017. Bin is a Senior Portfolio Manager and Head of the China Equity

Team. Prior to joining the firm, he was the CIO and founding partner at Cloud Ridge Capital Management, where he

launched the Greater China Equity strategy in 2014. Prior to Cloud Ridge, he was a portfolio manager and managing

director in Public Equities at China Investment Corporation (CIC). Prior to CIC, he was a managing director with

Eagle Capital Management LLC based in New York. Bin began his career at McKinsey & Co in Stamford CT in 2001.

He earned MPhil, from Columbia University, where he was a PhD candidate in the business school. Bin also holds a

PhD in physics from Brandies University and attended Peking University.

7


Changing China

Nowhere in the world is undergoing such transformational change as China today

China is experiencing significant growth and evolution. By looking for those areas of the market that will

develop in the next 5 years, investors can identify tomorrow’s winners today.

8


Identifying Change

IMPROVING QUALITY OF LIFE

Secular Changes Influencing China Today

UPGRADE OF HUMAN CAPITAL STATE-OWNED ENTERPRISES

260Billion

USD spent by Chinese

consumers outside China in

2016

8KChina’s per capital GDP is

on par with mid-level EM

markets such as Malaysia

40% China’s 18-year-olds went to

college in 2016

An Increasingly Educated Economy

• Improving quality of life

Environmental management

Consumer brands

Services: travel, entertainment, financial

services, healthcare

• Upgrade of human capital

Education

R&D driven companies (R&D workforce is set to

double by 2025 and triple by 2035)

• State Owned Enterprises

Mixed ownership

Employee incentives

Enhanced capital allocation

Consolidation

Opportunities:

8% ROE barely above cost of

capital

60%Of total assets (industrial

companies only)

40%Of industrial profits, less

than ½ of efficiency of

private firms

100

200

300

400

500

600

700

800

900

2000

2002

2004

2006

2008

2010

2012

2014

2016

Education

Population

Expressway

Mileage

GDP

_______________________Source: Neuberger Berman & WIND, as of March 31, 2018.

9


Investment Portfolio

INVEST ACROSS SECULAR TRENDS

“Capitalizing on Change”

30.9%

18.7%

10.9%

10.9%

7.5%

7.5%

5.7%

3.2%

0.0%

0.0%

0.0%

39.2%

21.3%

2.0%

9.6%

4.4%

2.7%

2.6%

3.6%

4.1%

5.4%

5.1%

Information Technology

Financials

Materials

Consumer Discretionary

Industrials

Utilities

Consumer Staples

Health Care

Telecommunication Services

Real Estate

Energy

Fund Benchmark

Security Name Fund SectorQuality of

Life

Upgrade of

Human

Capital

State-owned

Enterprises

1. Wuliangye Yibin 5.7%Consumer

Staples

2. China Taiping

Insurance5.6% Financials

3. China Pacific Insurance 5.3% Financials

4. BTG Hotels 5.2%Consumer

Discretionary

5. Alibaba Group 5.0% IT

6. Tencent Holdings 4.9% IT

7. Noah Holdings 4.4% Financials

8. ASM Pacific

Technology4.2% IT

9. Tangshan Jidong

Cement3.8% Materials

10. Huifu Payment Limited 3.4% IT

Total Top 10% 47.5%

Total No. of Stocks 28

_______________________Source: Neuberger Berman, as of June 30, 2018.

DIVERSIFIED SECTOR ALLOCATION

Top 10 Holdings Sector Allocation (%)

10


Investment Portfolio

Where do we look for investments?

China A19%

HK55%

US21%

Cash5%

A DIVERSE MARKET

THE ANATOMY OF THE CHINA EQUITIES MARKET CHINA EQUITY OPPORTUNITIES FUND

Portfolio Allocation as of June 30, 2018

• Bottom up search for best ideas across

markets

_______________________Source: Neuberger Berman & WIND, as of June 30, 2018.

100 1,600900

2,700100

2,900

3,500

7,600

0%

20%

40%

60%

80%

100%

Number of Stocks Total Market Cap ($ billion)

ADR H Shares A+H Dual Listing China A Shares

0%

20%

40%

60%

80%

100%

China A Hong Kong & ADR

Information Technology

Utilities

Health Care

Materials

Industrials

Real Estate

Consumer Staples

Telecommunication Services

Energy

Financials


11


Investment Discipline

• Occasionally, we find the ideal investment (often in a market rout, or an under-covered name) that meets all three criteria

• Most of the time, we find companies that, with the appropriate catalysts, could transform into higher performing companies over time

Existence of hidden value in unrecognized

assets

Mis-pricing opportunities

Potential to double over three to five years

Management quality

Corporate governance

Longer-term business strategy

Innovation

New products

Inflection points

Changing industry dynamics

Well Positioned

for Change

Well Managed

Reasonably

Priced

What do we look for in an investment?

12


Investment Team

Local experts with a global perspective, brought together by a cohesive culture and client alignment

As of June 30, 2018. Staffing is subject to change without notice.

Bin Yu

Lead Portfolio Manager

Financials

17 Years of Industry Experience

PORTFOLIO MANAGER

Emily Zhang

Materials, Consumer

10 Yrs of Industry Exp.

SECTOR-FOCUSED RESEARCH ANALYSTS

ASIAN RESEARCH ANALYSTS

Claire Xiao

Industrials, Energy


Mike Miao

Strategy and Policy Research


GLOBAL EQUITY RESEARCH DEPARTMENT

Alan Tsang, CFA

Financials / Property


Leo Lin, CFA

Industrials


Yan Taw (YT) Boon

Technology, Media & Telecom


Timothy Creedon

Director of Global Equity Research

41 Dedicated Research Professionals

• 34 Research Analysts with an average of 19 years of industry

experience

• Research analysts are supported by 7 research associates

Global Equity Research Department meetings in 2016

• Hosted 1,500+ meetings with company management

• Hosted 1,200+ meetings with sell-side analysts in NB offices

• Attended 1,000+ meetings with companies outside of NB offices

Shawn Li

Healtchare


Fan Liu

Technology, Media & Telecom


Baoying Zhai



Nancy Wang

Operations Analyst

13


Investment Process Overview

High conviction approach emphasizing fundamental research

HIGH

CONVICTION

PORTFOLIO

25 - 35

Core Holdings

Disciplined Buy /

Sell Process

_______________________* Refer Appendix for more detailed Universe information.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 Group LLC.

RISK MANAGEMENT

Investment

Universe

~700 Companies

• Initial Screening on:

o Liquidity

o Market cap.

o Valuation

o Business

fundamentals

• Mega Cap (>$10B)

o ~150 companies with

~4T mkt cap.

• Small-Mid Cap ($1-$10B)

o ~500 companies with

~2T mkt cap.

• Global China Plays

o 500 companies with

significant China

exposure

Research List

~200 Companies

• Industry and company

research by sector

analysts to determine

key performance drivers

• Research list prioritized

by portfolio manager with

input from sector

analysts

• Favoured Themes

o 75-150 companies

• Adjacencies

o 25-75 companies

• Leaders in other

Industries

o 25-75 companies

Focus List

~80 Companies

• Deep dive analysis on

company / industry

• Detailed financial models

and valuation metrics

• Identify:

o Exciting opportunities

for change

o Attractive risk /

reward profiles

o Potential substitutes

for existing holdings

Portfolio

Construction

• Weekly research

meetings

• Bi-weekly internal model

portfolio review

• Monthly analyst updates

of key industry drivers

and trends

• Ongoing monitoring,

maintenance and

reviews

14


Case Study – Tencent

New Opportunities in a Well Loved Stock

COMPANY DESCRIPTION

EXPOSURE TO THEMES

“CHANGE”

_______________________Source: Bloomberg. As of June 30, 2018.This document is intended as a broad overview of the Portfolio Manager’s style, philosophy and process and is subject to change without notice. References to any Funds or Securities in the document are for illustrative purposes only and do not constitute a recommendation to investors

Tencent is the biggest internet services

provider in China. It is the market leader in

games and social networking. It also

provides advertising, entertainment,

financial services, retail and other

consumer services either directly through a

network of Tencent partners.

INVESTMENT RATIONALE

Well Positioned for Change

• Tencent takes up over 20% of time-spent on Chinese internet with 1B combined Wechat/QQ users.

Well Managed

• Great track record in establishing and building out a strong suite of products internally and through partners.

Reasonably Priced

• Monetization of Tencent properties is low relative to competitors. Tencent could double its earnings from

advertising and financial services.

PRICE TREND

-100%

0%

100%

200%

300%

400%

500%

600%

700%

800%

900%

Jan-13 Jun-13 Nov-13 Apr-14 Sep-14 Feb-15 Jul-15 Dec-15 May-16 Oct-16 Mar-17 Aug-17 Jan-18 Jun-18

Tencent MSCI China Index Buy/Add Sell/Trim

15


Case Study – NOAH

Market leader in a nascent industry

Noah is leading independent wealth and

asset management provider in China,

with a focus on high net worth

individuals and enterprises. Noah sold

$18B of financial products in 2017,

through its network of 1,300 relationship

managers in 79 cities.

COMPANY DESCRIPTION

EXPOSURE TO THEMES

“CHANGE”



• Accumulation of wealth and emergence of private banking to serve those needs

Well Managed

• Noah has been run by the same management team since day one, with a strong track record in maintaining

long-term growth and reputation of the firm at the expense of short-term growth, and successful expansion

into asset management and advisory.

Reasonably Priced

• Almost always lumped with much more equity market-sensitive brokers and only valued at 10-20x P/E.

PRICE TREND


-50%

0%

50%

100%

150%

200%

250%

300%

350%

400%

Sep-14 Feb-15 Jul-15 Dec-15 May-16 Oct-16 Mar-17 Aug-17 Jan-18 Jun-18

NOAH MSCI China Index Buy/Add Sell/Trim

16


Case Study – Kweichou Moutai

Quality through cyclical challenges

The company owns the iconic Maotai

brand (premium hard liquor).Based in

remote province of Kweichou, its liquor

brand is well-known nationally and

dominates the ultra-premium segment. KM

earned 25B on just 59B of sales in 2017.

COMPANY DESCRIPTION

EXPOSURE TO THEMES

“CHANGE”



• One of the few true Chinese luxury brands to meet needs of rising middle-class consumers.

Well Managed

• One of the best SOE stories, management established and cemented Maotai’s reputation as the preeminent

liquor brand.

Reasonably Priced

• Only 12X during crisis and currently 25x in the growth cycle

PRICE TREND


-100%

0%

100%

200%

300%

400%

500%


Kweichou Moutai MSCI China Index Buy/Add Sell/Trim

17


Case Study – BBMG

Structural Transformation of a Traditional Industry

BBMG is a building materials supplier and

property developer based in Beijing. It

controls over 50% of cement capacity in

Beijing, Tianjin and Hebei (BTH). It also

both develops and owns real estate with a

focus in the BTH.

COMPANY DESCRIPTION INVESTMENT RATIONALE


• Well positioned on multiple fronts, demand recovery in multi-year build-out of BTH region, supply

consolidation and pricing discipline in cement industry, and emission control.

Well Managed

• Option on SOE reform

Reasonably Priced

• Margin potential of cement and hidden value of industrial properties not reflected in stock price.

EXPOSURE TO THEMES

“CHANGE”

PRICE TREND


-40%

-20%

0%

20%

40%

60%

80%

100%


BBMG MSCI China Index Buy/Add Sell/Trim

18


Portfolio Construction

• Know What You Own

• Diversify Across Investment Themes

• Patient, Low Turnover Investor

A high conviction, benchmark agnostic portfolio

KEY PRINCIPLES PORTFOLIO GUIDELINES

TYPICAL

Geographic

Exposure

80-100% China-based (A share, H share,

p-notes, ADRs)

0-20% global companies

Portfolio

Composition25-35 stocks

Concentration

Single names: 3-10% (based on conviction

and liquidity)

Top 10 names: 50-70%

Turnover/

Investment Horizon

50-100% (in dollar terms)

Holding 24-60 months

Market

Capitalization

No bias between SMID and Large Caps

Limited exposure to true Small Caps (less than

$1 billion)

19


-8.92

-2.66

-7.25

9.41

3.39

10.27

-5.22-3.50

-1.75

21.23

7.08

10.59

-15.0

-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

Month QTD YTD 1 Year 3 Year Since Inception

Representative Account Net Performance MSCI China Index

Representative Account Net Performance

Returns (%) As of June 30, 2018

_______________________Source: Neuberger Berman1. Performance is based on Neuberger Berman China Equity US Feeder Fund, a Cayman Master/Feeder private fund incepted on 1st October, 2014 Performance is gross of fees and calculated based on Class F shares. Please

note that Class F shares have been re-designated as Class C shares on November 1, 2017. Neuberger Berman China Equity US Feeder Fund is managed by Neuberger Berman China Equity Team, and uses the same investment process and strategy as Neuberger Berman China Equity Opportunities Fund’s. There are differences in the portfolio construction and the performance of the Neuberger Berman China Equity US Feeder Fund and Neuberger Berman China Equity Opportunities Fund. Neuberger Berman China Equity Opportunities Fund is subject to more investment restrictions due to the UCITS regulations. Benchmark = MSCI China TR Index. Indices are shown for illustrative purposes only and are not available for direct investment. Indices are unmanaged, include reinvestment of any dividends, capital gain distributions or other earnings and do not reflect any fees or expenses. Investors cannot invest directly in an index. There are differences in the fee structure, investment policy, strategy and portfolio composition between the representative account and the UCITS fund. Actual results may vary due to specific client and fund guidelines and other factors. Please see additional disclosures.

Past performance is not indicative of future returns. Returns longer than 1 year are annualized

Annualized

20


Why Neuberger Berman China Equity Opportunities Fund

A concentrated, high conviction, long-term value-oriented approach (25-35 stocks)

Deep bottom-up research

A liquid portfolio combined with comprehensive risk management

Summary

Experienced local team with global perspective, leveraging the breadth of Neuberger Berman resources

Invest in changes and capitalize on long-term, sustainable trends

21


Neuberger Berman China Equity 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 December 15, 2017

Fees Class I USD Acc: 1.00%

Maximum TER Class I USD Acc: 1.30%

Minimum Subscription Class I USD Acc: USD 2,500,000

Fund Codes ISIN: IE00BYWSP828

Administrator BBH

Benchmark MSCI CHINA (USD Total Return) Index

Base Currency US Dollars

_______________________Fees as of latest available Prospectus. Please check with your Neuberger Berman representative to see if these share classes are available at this time.

22


Sector Weightings

_______________________Source: Neuberger Berman, MSCI; Fact Set. Neuberger Berman LLC. Morningstar.

SECTOR BREAKDOWN (%)

As of August 31, 2018

27.1 22.0

10.6 9.8 9.06.4 6.2 4.9

0.0 0.0 0.04.0

22.0

37.5

4.62.0 2.4

8.9

2.7 3.5 5.6 4.9 5.7

0.00

5

10

15

20

25

30

35

40

Fund MSCI China Index

For Professional Client Use Only23


Top Ten Holdings

As of August 31, 2018

_______________________Source: Morningstar. Investors should note that the Fund does not track this index, which is included here for comparison purposes only. Benchmark: MSCI China Index (USD Net Total Return).

Fund Benchmark

China Taiping Insurance Holdings Co., Ltd. 6.09 0.32

Wuliangye Yibin Co., Ltd. Class A 5.74 0.02

China Pacific Insurance (Group) Co., Ltd. Class H 5.51 0.61

Noah Holdings Ltd. Sponsored ADR Class A 4.97 0.08

Sinopharm Group Co., Ltd. Class H 4.87 0.37

Huaneng Renewables Corp. Ltd. Class H 4.87 0.10

Tangshan Jidong Cement Co. Ltd. Class A 4.67 0.00

Momo Inc Sponsored ADR Class A 4.44 0.34

Industrial and Commercial Bank of China Limited Class H 4.24 3.19

New China Life Insurance Co., Ltd. Class H 3.95 0.23

TOP 10 HOLDINGS (%)

For Professional Client Use Only24


Market Risk: The risk of a change in the value of a position as a result of underlying market factors, including among other things, the overall performance of companies

and the market perception of the global economy.

Liquidity Risk: The risk that the fund may be unable to sell an investment readily at its fair market value. In extreme market conditions this can affect the fund’s ability to

meet redemption requests upon demand.

Emerging Markets Risk: Emerging markets are likely to bear higher risk due to a possible lack of adequate financial, legal, social, political and economic structures,

protection and stability as well as uncertain tax positions which may lead to lower liquidity. The NAV of the fund may experience medium to high volatility due to lower

liquidity and the availability of reliable information, as well as due to the fund's investment policies or portfolio management techniques.

Stock Connect Risk: The Shanghai/Shengzen-Hong Kong Stock Connect are relatively new trading programmes, where many of the relevant regulations are untested

and subject to change at any moment as well as not as active as exchanges in more developed markets which may affect the ability to sell your shares. Additional risks

needs to be considered and you should refer to the 'investment risk' section of the prospectus for details.

Single Country Risk: Where a fund invests primarily in a single country, it may be subject to greater risk and above average market volatility than an investment in a

broader range of securities covering multiple countries.

Concentration Risk: The fund's investments may be concentrated in a small number of investments and its performance may therefore be more variable than the

performance of a more diversified fund.

Counterparty Risk: The risk that a counterparty will not fulfil its payment obligation for a trade, contract or other transaction, on the due date.

Operational Risk: The risk of direct or indirect loss resulting from inadequate or failed processes, people and systems including those relating to the safekeeping of

assets or from external events.

Currency Risk: Investors who subscribe in a currency other than the base currency of the fund are exposed to currency risk. Fluctuations in exchange rates may affect

the return on investment. If the currency of your investment is different from your local currency, then you should be aware that due to exchange rate fluctuations the

performance shown may increase or decrease if converted into your local currency.

Principal Investment Risks

25

TEAM BIOGRAPHIES


Bin Yu – Lead Portfolio Manager

Deep knowledge and experience investing in Asia, with a global perspective

Education

2003–08

2008

2009–14 • Global Equities Portfolio Manager with China angle, for several multi-billion active mandates

– Long-short 2009-2013

– Long-only 2010-2013

– Equity special situation 2012-2013

• Portfolio Manager for both internal and external global equity mandates

• Built the equity platform, recruited and led a team of 12 research analysts

2001–03

Columbia Business School

Brandeis University

Peking University

• Set up global equity platform (Qualified Domestic Institutional Investor) for a top five Chinese mutual fund

• One of six members of investment team

• Led coverage of financial services; secondary coverage of industrial and technology

• Seek quality companies with underappreciated potential for change

• Concentrated, low turnover portfolio of high conviction ideas

• Consistently top-ranked U.S. equity manager

• Served broad-based clients in industries such as media, financial services, IT services and manufacturing

• M. Phil. In Operations Management and Ph.D. candidate

• Ph.D. in Physics

• Majored in Physics

2014–17 CloudRidge CapitalChief Investment Officer

• Founder and Portfolio Manager

• China-focused long only fund

• Recruited current investment team

China Investment

Corporation (CIC)Beijing, China

Managing Director,

Portfolio Manager

GF FundsHead of Global Equities

Eagle Capital ManagementManaging Director

McKinseyAssociate

27


Full Team Biographies

• Portfolio Manager, formerly CIO and Founding Partner of Cloud Ridge from 2014-2017

• Most recently a managing director at China Investment Corporation (CIC). From 2009-2013, was Portfolio Manager or co-Portfolio

Manager on several sizable equity strategies (long, long-short and special situation). Additionally, responsible for managing research

analysts and allocating to outside global equity managers from 2011-2013

• Head of Global Equities at GF funds in 2008, developed initial infrastructure for Qualified Domestic Institutional Investor program

• Managing Director at New York-based Eagle Capital Management LLC from 2003-2008 as a member of the six person investment

team, responsible for primary coverage in financial services, and secondary coverage of manufacturing and technology stocks

• Associate at McKinsey & Co. in the Stamford Office from 2001-2003, where he worked on marketing, operations and strategy cases

in manufacturing, media, IT services and financial services

• Holds an M. Phil. In Operations Management from Columbia University, where he was a Ph.D. candidate in the Business School.

Also holds a Ph.D. in physics from Brandeis University and attended Peking University

• Senior Research Analyst, formerly COO and Founding Partner of Cloud Ridge

• From 2009-2012, COO and Director of Research at Global Finance Institute, a think tank affiliated with State Council’s Development

Research Center, where he was responsible for managing 20 analysts who researched extensively on macro economic and policy

issues for government agencies such as the China Development Bank and the Banking Association, and organizing high level forums

• Investment Director at Beijing AoHua Inc., the media and marketing arm for the Beijing Olympics Committee, where he was

responsible for relationship management with major sponsors and government agencies, and production of TV programs

• Project manager at China Northern Industry Company from 1996-2004, with extensive experiences in trade finance, government

relations and business development

• Holds an M.A. in finance and public policy from the School of International and Public Affairs at Columbia University and a B.S. in

International Trade from Changchun University of Technology

Mike Miao

Bin Yu

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Full Team Biographies (Continued)

• Senior Research Analyst, formerly Founding Partner of Cloud Ridge

• Business Analyst at Strategy Department of Citic Securities from 2011-2014

• Prior to Citic Securities, she was an equity analyst for over four years, covering China equity on the buyside at Thornburg Investment

(U.S.), and the China metals and mining sector on the sell-side at JP Morgan, respectively

• Holds an MBA from Columbia University and a BE from Shanghai Jiaotong University

• Research Analyst

• Associate in strategy consulting in Accenture’s Beijing Office from 2012-2014, where she participated in marketing and strategy studies,

primarily for companies in the energy industry

• Holds an MA and BA in Applied Mathematics from Renmin University of China

• Operations Analyst

• Auditor in Technology Media Telecom at Deloitte Touche Tohmatsu in Beijing from 2015-2016

• Holds a Master’s degree in Accounting from University of Miami

• Research Analyst

• Research analyst at AB Bernstein, launched coverage of Asia-Pacific Healthcare

• Prior to AB Bernstein, worked at the Principal Investment area at Goldman Sachs, New York

• Holds MS from Carnegie Mellon University and BS from Zhejiang University with honor

Emily Zhang

Claire Xiao

Nancy Wang

Shawn Li

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APPENDICES


The Greater China Equity Universe

(>$10B market cap)

Companies Key Players Our Investment Edge

• Financials

• State Owned Enterprise (SOE) champions

• Established sector leaders

• Index funds

• Large global long funds

• Deep understanding and experience researching and investing in large companies impacted by macro policy making and industry changes and trends

• Rigorous research of SMID Cap companies helps identify emerging trends and competitors that could impact Mega Cap companies; trends and companies that are not always apparent to large globally focused funds

• Single product growth stories

• Opportunities across all sectors

• EM specialists

• Local funds

• Retail investors

• Spot new themes and changes early with first-hand access to management teams and markets

• Extensive network in combination with a unique background and experience that can separate hype from sustainable businesses, and to validate management capabilities

• Apply discipline and analytical rigor to exciting new business models and companies

• Consumer

• Industrials

• Resources

• Large global long funds

• Ability to better assess the local reality and upside potential than global investors visiting China infrequently

• Utilize the firm’s robust Global Central Research Department for additional insights into each company’s business conducted outside of China

Opportunity set of approximately 700 companies

Opportunity Set

• ~150 mega cap companies

• ~$4T mkt cap

• ~500 SMID companies

• ~$2T mkt cap

• ~ 50 large global companies with significant China exposure

Mega Cap

($1-10B market cap)

SMID Cap

Global China

Plays

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Fundamental Research Workflow

Seek companies that are positioned to benefit from long-term trends and meaningful changes

1) Identify Compelling

Trend or Change

2) Conduct Initial

Assessment / Review

3) Form In-depth Thesis /

Full Research Review

4) Continuously

Reassess Thesis

Idea Generation

• Industries experiencing secular

change (e.g., Jidong Cement)

• Industries with disruptor entering

market (e.g., Tencent)

• Companies at inflection points

(e.g., JD)

• Quality companies going through

short-term challenges

(e.g., Kweichou Moutai)

• Fast growing companies in nascent

industries (e.g., Noah)

Detailed Fundamental Analysis

• Identify key operational and financial

metrics

• Conduct management due diligence

and interviews

• In-depth review of competitors and

value chain

• Build detailed proprietary valuation

models

• Assess upside/downside based on

possible outcomes

Ongoing Monitoring

• Periodically update financial models

and valuation assumptions

• Ongoing harvest reviews

Catalysts realized?

Valuation/liquidity reasonable?

Thesis still valid?

Better investments available?

Price target?

Sell discipline?

Preliminary Company Review

• Review reported financial

information

• Review management track

record

• Conduct industry analysis and build

preliminary model to establish

assumptions (size, growth, margin

trends, etc.)

Is the company positioned to

take advantage of the identified

trend or change?

Does the company appear to

have substantial upside

potential?

Potential for 100% upside over

three to five years?

Has the thesis concluded or

changed? Is it ongoing?

32


Disclaimer (Continued)

Equity and Fixed Income AUM Outperformance Note: Firm equity and fixed income Assets Under Management (“AUM”) outperformance figures are based upon the aggregate assets for all Neuberger Berman LLC and Neuberger Berman Fixed Income LLC traditional equity and fixed income strategies that are included in each firm’s institutional separate account (“ISA”), managed account/wrap (“MAG”) and private asset management/high net worth (“PAM”) composites. The AUM outperformance results are based on the overall performance of each individual investment strategy against its respective strategy benchmark and results are asset weighted so strategies with the largest amount of assets under management have the largest impact on the results. As of 12/31/2011, seven equity teams/strategies accounted for approximately 53% of the total firm equity (PAM, ISA and MAG combined) assets reflected, and eight strategies accounted for approximately 71% of the total firm fixed income (PAM, ISA and MAG combined) assets reflected. The performance of the individual PAM equity teams/strategies is generally shown as a supplemental exhibit to the PAM Equity Composite. The respective ISA, MAG and PAM composite reports, as well as the PAM Management Team supplemental performance exhibits are available upon request. Individual strategies may have experienced negative performance during certain periods of time. Hedge fund, private equity and other private investment vehicle assets are not reflected in the AUM and product outperformance results shown. AUM outperformance for ISA and MAG strategies 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 and products outperformance results would be lower. Investing entails risk, including possible loss of principal. Past performance is no guarantee of future results.

Barron’s “Best Fund Families of 2011”: To qualify for the Lipper/Barron's Fund Survey, a group must have at least three funds in Lipper's general U.S.-stock category, as well as one in world equity, which combines global and international funds. They also require at least one mixed-equity fund, which holds stocks and bonds. Fund shops also must have at least two taxable-bond funds and one-tax-exempt offering. Each fund's returns are adjusted for 12b-1 fees, which are used for marketing and distribution expenses. The funds usually add these fees back into returns. Lipper/Barron’s aim is to measure the manager's skill. Fund loads, or sales charges, aren't included in the calculation of returns, either. Each fund's return is measured against those of all funds in its Lipper category, such as, say, small-cap value. That leads to a percentile ranking, with 100 the highest and 1 the lowest, which is then weighted by asset size, relative to the fund family's other assets in its general classification- world equity, for instance. If a family's biggest funds do well, that boosts its overall ranking. Poor performance in a big fund obviously has a big effect on the ranking. Finally, the score is multiplied by the weighting of its general classification, as determined by the entire Lipper universe of funds. The category weightings for the one year results: general equity, 38.04%; world equity, 12.77%; mixed equity, 17.36%; taxable bonds, 27.43% and tax-exempt bonds, 4.40%.

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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.

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. Ref: 241404 207111

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Neuberger Berman China Equity Opportunities Fund berman...launched the Greater China Equity strategy...

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