neuberger berman 5g connectivity fund • neuberger berman group llc ("nb",...
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For Sophisticated Investors Only
Neuberger Berman5G Connectivity FundSeptember 2020
2For Sophisticated Investors Only
What is 5G?
5G is a key building block connecting and enabling a new wave of innovations
Source: Neuberger Berman.
ROBOT
ARTIFICAL
INTELLIGENCE
INTERNET OF
THINGS
MOBILITY
3For Sophisticated Investors Only
5G vs 4G: What Are The Fundamental Differences?
Up to 100x that of 4G Response time of <0.001sConnect 100x more devices
MORE CONNECTIVITY FASTER SPEED HIGHLY RELIABLE
Source: Best Buy, CTIA.
GB/s
DOWNLOADING…
Enable Internet of Things by connecting 7tn devices Enable Mission Critical Applications such as
autonomous vehicles and remote surgery
4G: 100 Megabits per second
5G: 10-50 Gigabits per second
4For Sophisticated Investors Only
Technologies
Devices
Speed & Quality
Winners / Losers
Companies
5G: Leading to a New Era of Internet of Things (IoT)
Source: Bloomberg. The inclusion of any individual security in this document does not constitute a recommendation to invest.
The evolution of 5G and IoT are creating new winners & losers
Who’s Next?
1980 1990 2000 2010 2020
1G 5G4G3G2G
2030
6G
5For Sophisticated Investors Only
5G: Driving Broad Investment Opportunities
Source: IHS Markit “The 5G Economy : How 5G will contribute to the global economy”, November 2019.
Connected VehiclesImproved Traffic,
Fewer Accidents
Connected FactoriesReal-time Automation,
Better Productivity
Connected HealthImproved Precision,
Better Safety
Augmented /
Virtual RealityMore Immersive,
Enhanced Experience
5G is an unstoppable trend that will lead to meaningful economic growth over the next 10-15 years
US$13.2 Trillioneconomic opportunities
22.3 Millionjob opportunities
by 2035
6For Sophisticated Investors Only
Why Now? Data is the New Oil, 5G is the Pipeline
A global 5G race has just begun and strategic investments in 5G to boost future growth is accelerating
Source: GSMA “The Mobile Economy 2020”.
5G
commercialized
Planned
5G rollout
Telecom operators
accelerate 5G investment
Latest economic stimulus globally is allocating a meaningful portion for strategic investments in 5G & broadband:
US$1 Trn
• Improve 5G & rural broadband networks
RMB2 Trn
• Rollout of 5G networks, data centers and
other high-tech infrastructure
• Rollout of 5G networks for better
connectivity and digital transition
EUR750 Bn
7For Sophisticated Investors Only
5G Investment Theme Has a Long Runway
5G public network is in early stages of deployment. The next bigger wave of 5G will extend to private enterprises
Source: Neuberger Berman, Ericsson, Qualcomm. The inclusion of any individual security in this document does not constitute a recommendation to invest.
5G Public Network 5G Private Network
FACTORY /
WAREHOUSE
5G 5G 5G
HOSPITAL
2019 2025 2030
2G / 3G / 4G
5G38
160
88
2025
Global m
obile data traffic (Exabyte per m
onth)
2019 2030
6G
Phase I Phase II
Optimized
Secured
Dedicated
8For Sophisticated Investors Only
5G Thematic Universe
Focusing on Three Key Buckets of Investment Opportunities
• Base station
• Small cells
• Data centers
• Optical networking
• Sensors
• OLED displays
• Mobile processors
• Radio frequency components
• Cloud
• Software
• Network security
• Emerging services
Network Infrastructure IoT Devices Applications & Services
Connected
Health
Smart Cities Smart Homes
Unmanned
Stores
Enterprise Server
Cloud Datacenter
9For Sophisticated Investors Only
Why Active Management?
Source: Neuberger Berman.
Application
IoT Devices
Emerging
Businesses
Applications
Network
Infrastructure
Better capturing and navigating the long-cycle investment theme with evolving opportunities
Evolving Portfolio Mix
Early-stage
Network Rollout
2020
Network
Infrastructure
IoT Devices
Full-scale
Commercialization
2030
Taking advantage of the decoupling of 5G ecosystem
WESTERN ECOSYSTEM
Internet: Google, Facebook, Amazon
5G: Samsung, Qualcomm
CHINA ECOSYSTEM
Internet: Baidu, Tencent, Alibaba
5G: Huawei, ZTE
EricssonMediatek
Neuberger Berman 5G Connectivity Fund
11For Sophisticated Investors Only
Portfolio Overview
*Source: Neuberger Berman and MSCI, as of August 31, 2020.
This material is intended as a broad overview of the portfolio managers' current style, philosophy and process. Portfolio information (characteristics, holdings, weightings, etc.) is subject to change without notice. Specific securities
identified and described do not represent all of the securities purchased, sold or recommended for the fund. It should not be assumed that any investments in securities or companies identified were or will be profitable. Investing
entails risks, including possible loss of principal. See Additional Disclosures at the end of this piece, which are an important part of this presentation. Client accounts are individually managed and may vary significantly from
composite performance and representative portfolio information.
Portfolio Mix by Investment Category Portfolio Mix by Region
61.5%
25.0%
7.9%
North America
Asia&EM
EMEA
Portfolio Mix by Market Cap
Tickers Company Name Category % Portfolio
LITE Lumentum Network Infrastructure 3.8%
KEYS Keysight Technologies Network Infrastructure 3.6%
CLNX Cellnex Telecom Network Infrastructure 3.5%
ZEN Zendesk Applications & Services 3.4%
9618 HK JD.com Applications & Services 3.4%
TMUS T-Mobile Applications & Services 2.9%
ADI Analog Devices Network Infrastructure 2.9%
QRVO Qorvo IoT Devices 2.8%
OLED Universal Display IoT Devices 2.8%
6976 JP Taiyo Yuden IoT Devices 2.7%
29.4%
36.2%
30.2%Network Infrastructure
IoT Devices
Applications & Services
Top 10 Holdings
55.3%
31.5%
8.9%Large Cap: >$20B
Mid Cap: $5B - $20B
Small Cap: <$5B
12For Sophisticated Investors Only
Top 10 Holdings
Source: Neuberger Berman, as of August 31, 2020. The inclusion of any individual security in this document does not constitute a recommendation to invest. This material is intended as a broad overview of the portfolio managers'
current style, philosophy and process. Representative portfolio information (characteristics, holdings, weightings, etc.) is subject to change without notice. Marvell and described do not represent all of the securities purchased, sold or
recommended for advisory clients. It should not be assumed that any investments in securities or companies identified were or will be profitable. Investing entails risks, including possible loss of principal. See Additional Disclosures
at the end of this piece, which are an important part of this presentation. Client accounts are individually managed and may vary significantly from composite performance and representative portfolio information.
Company name Category Description
LumentumNetwork
Infrastructure
• Leading manufacturer of optical networking components that enable faster optical network transmissions between 5G base stations and data centers.
• Also a leading supplier of optical laser components for 3D sensors in smartphones
• The company benefits from 5G network infrastructure roll-out and increasing 3D sensing features in 5G smartphones
Keysight
Technologies
Network
Infrastructure
• Leading test and measurement equipment provider for 5G network testing
• The company’s test and measurement equipment benefits from the expansion of 5G network infrastructure and increasing complication of IoT Devices
Cellnex TelecomNetwork
Infrastructure
• Largest independent telecom tower infrastructure company in Europe, with tower assets across Europe including Spain, Portugal, Italy, Switzerland, Netherlands,
France and the UK.
• The company is a key beneficiary of 5G network rollout in Europe given increasing demand for telecom towers, data centers and optical fiber assets in Europe as
5G builds out.
• The company also benefits as a consolidator of tower assets across Europe through M&A deals, and is well positioned to benefit from its strong position within
the European 5G ecosystem.
ZendeskApplications &
Services
• Leading provider of web-based help desk software with customer support program
• The company supports businesses to service clients through online help-desk as enterprises go digital
JD.comApplications &
Services
• JD.com is a leading e-commerce platform provider in China for consumer electronics, home appliances, and increasingly for supermarket items & healthcare
products.
• The company benefits from 5G smartphone sales ramping up in China as online sales of smartphones in China continues to increase.
• JD.com is also a key beneficiary of 5G-enabled logistics that will greatly improve the efficiency of operations.
T-MobileApplications &
Services
• One of the leading telecom operators in the US
• The company is a key enabler of 5G given its strong positioning (more 5G wireless spectrum capacity post Sprint merger) in building a competitive 5G network in
the US.
Analog DevicesNetwork
Infrastructure
• Leading supplier of analog semiconductor chip that specializes in data conversion, signal processing and power management.
• The company’s radio frequency semiconductor is a must-have in 5G base station equipment given its leading market position and power efficient technology that
is necessary for massive MIMO (multiple input multiple output)
Qorvo IoT Devices
• Leading manufacturer of radio-frequency (RF) semiconductors for 5G base stations and smartphones
• The company benefits from market share gains and dollar content growth given its focus on mid/high-band RF modules based on BAW filter technologies, which
is increasingly important in 5G
Universal Display IoT Devices
• Universal Display is a leading materials supplier & technology licensing company for OLED technologies.
• The company is a key technology enabler of thinner & lower power displays for 5G smartphones and also foldable smartphones
• Rising penetration of OLED in 5G devices will drive stronger demand for OLED material.
Taiyo Yuden IoT Devices
• Leading manufacturer of high-end multi-layer ceramic capacitors for smartphones and base stations
• The company developed the world’s thinnest MLCC with high capacitance for improving power consumption and enhancing processing capacity in smartphones
and wearable devices
13For Sophisticated Investors Only
Fund Performance
Track record driven by 5G trend acceleration, robust active investment process and stock selection
Source: Neuberger Berman and Bloomberg, data as of August 31, 2020. Shareclass Inception: May 4, 2020. Benchmark: MSCI All-Country World Index (ACWI) (Total Return, net of tax, USD)
Fund performance is representative of the USD A Accumulating Class and has been calculated to account for the deduction of fees. Fund performance does not take account of any commission or costs incurred by investors when
subscribing for or redeeming shares. These figures refer to the past. Past performance is not a reliable indicator of future results.
Performance data is as of 28th August due to a fund holiday whilst benchmark data is as of 31st August.
Hypothetical Growth of $100
95
100
105
110
115
120
125
130
05/2020 06/2020 07/2020 08/2020
USD A Accumulating Class Benchmark
23.82%
6.12%
25.00%
2.38%
Since Inception
Latest Calendar Month
USD A Accumulating Class Benchmark
Cumulative Performance (net)
14For Sophisticated Investors Only
0
1000
2000
3000
4000
5000
6000
Why NB?
A forward-looking, thematically focused and ESG-integrated strategy investing in key enablers & beneficiaries of 5G trend
Source: Neuberger Berman and Bloomberg, as of August 31, 2020. Next Generation Connectivity Bloomberg ticker: 6431117C JP Equity. (Inception Date: 15/12/2017). Past performance is not a reliable indicator of future returns.
The mentioning of other strategies / funds managed by the PM is for illustrative purpose only, and does not constitute any recommendation to invest in such strategies / funds or represent the performance of the UCITS fund. Gross
of fee returns do not reflect the deduction of investment advisory fees, trading cost or any other expenses. If such fees and expenses were reflected, returns referenced would be lower. Past performance is not a reliable indicator of
future returns.
Managing Portfolio Dynamically to Capture Evolving Opportunities
Differentiated Portfolio Holdings
NB 5G Japan Fund - Solid Track Record of 2.5 Years
Experienced Team with Global Thematic Insights
Lead PM has over 10 years experience as microprocessor designer
AUM reaching over $5.5B
18.6
48.4
4.9
21.6
YTD (end-August) Inception to Date
Next Gen Connectivity (USD)MSCI ACWI Net
($mn)
NB 5G Japan Fund Performance
2020 2025 2030
Infrastructure
Building
Early Commercial
Deployment Full-scale
5G Deployment
5G deployment timeline
Portfolio mix
Network Infrastructure IoT Devices Application New Businesses
Global Stock
Universe
3,000+
Stocks
Thematic
Universe
200-300
Stocks
Portfolio
40-60
names
Hidden Gems
Differentiated
Holdings
Cross-Sector
Field ResearchData Science
Access &
Engagement
Source of Alpha
Tim Creedon
Director of Research
22 Years of Experience
Hari Ramanan
CIO, Research Funds
20 Years of Experience
YT Boon
Director of Research – Asia
16 Years of Experience
Lead PM
Supported by 40+ Global Investment Professionals, including ESG and Data Science
Worked at Huawei,
Broadcom, ARM,
Cadence
15For Sophisticated Investors Only
Neuberger Berman 5G Connectivity Fund
Other terms and conditions may apply and are subject to change without notice.
This does not constitute an offer or a solicitation with respect to the purchase or sale of any security. Characteristic of the fund mentioned in this document may be subject to change.
Investment Manager Neuberger Berman Europe Limited
Sub – Investment Manager Neuberger Berman Investment Advisers LLC
Inception Date April 8, 2020
Structure UCITS
Investment Objective & StrategyThe fund seeks to achieve long term capital appreciation through investment in a portfolio of global
equity holdings, focusing on companies that are involved or derive benefit from 5G connectivity.
Reference benchmark MSCI AC World Index (ACWI)
Liquidity Daily
Management Fees Class A USD Acc: 1.70%
Maximum TER Class A USD Acc: 1.90%
Minimum Subscription Class A USD Acc: USD1,000
Fund Codes Class A USD Acc: IE00BMPRXN33
Base Currency USD
Market Update – September 2020
17For Sophisticated Investors Only
Key Summary
1. How is the incremental Huawei ban impacting global 5G developments?
o We believe there will be market share redistribution over the medium term
2. What are the opportunities with upcoming 5G smartphone launches?
o China will release more affordable 5G phones (from US$200) in 4Q20 and this will benefit Mediatek and JD.com
o Apple’s upcoming 5G iPhone will accelerate 5G network upgrade globally
3. How is current valuation of the portfolio companies?
o We believe valuations of most of our holdings remain attractive and fundamentals are improving
o As a strategic investor in the 5G structural trend, we should stay focused on the medium/longer term outlook
4. Portfolio outlook:
o We are focusing more on the opportunities in IoT Devices as 5G smartphones are launched in 2H20
o Within network infrastructure, we are positioned for the optical network upgrade from 100G to 400G
For illustrative purposes only. This material is intended as a broad overview of the portfolio managers' current style, philosophy and process. Specific securities identified and described do not represent all of the securities purchased,
sold or recommended for the strategy. It should not be assumed that any investments in securities or companies identified were or will be profitable.
18For Sophisticated Investors Only
How is the Incremental Huawei Ban Impacting Global 5G Developments?
• What Happened? The US has announced further restrictions to limit Huawei’s ability to source any semiconductor components
from any company that uses US technology. We have been anticipating this to happen and we believe additional restrictions
will lead to market share shifts over the medium term
• Market Share Redistribution: Huawei will likely lose market share and result in market share redistribution. In the network
equipment space, Ericsson and Ciena will likely to gain market share from Huawei especially in Europe and the US. In
smartphones, Apple, Samsung and other Chinese brands such as Oppo, Vivo and Xiaomi are well-positioned to gain market
share. We believe component suppliers such as Mediatek, Qorvo and Win Semiconductor will benefit from the market share
redistribution
Geopolitical issues are driving the 5G race and market share redistribution
Source: Credit Suisse Research, September 2020. For illustrative purposes only. This material is intended as a broad overview of the portfolio managers' current style, philosophy and process. Specific securities identified and
described do not represent all of the securities purchased, sold or recommended for the strategy. It should not be assumed that any investments in securities or companies identified were or will be profitable.
Samsung, 21.5%
Huawei, 18.0%
Xiaomi, 11.4%
Oppo, 10.2%
Vivo, 10.1%
Apple, 56.9%
Samsung, 20.7%
Huawei, 15.3%
Apple
Samsung
Huawei
Xiaomi
Oppo
Vivo
LG
Others
Smartphones
Market Share
>US$500
Smartphones
Market Share
<US$500
19For Sophisticated Investors Only
What are the Opportunities with Upcoming 5G Smartphone Launches?
• China 5G Smartphones: Over 65% of China smartphones are now 5G enabled and the penetration will increase further with
the launch of more affordable models (from US$200) in 4Q20. We believe Mediatek, leading mobile processor company, as
well as JD.com, leading e-commerce platform for electronics in China, will benefit as China ramps up on 5G smartphones
• 5G iPhone Launch: Apple’s new 5G iPhone launch in October is expected to drive faster 5G smartphone adoption and lead to
an acceleration in 5G network upgrade. The high-end 5G iPhone models are expected to be equipped with LIDAR camera that
will enable augmented reality applications. This will benefit Lumentum which supplies optical laser for 3D sensors in
smartphones. Qorvo will also benefit from RF dollar content increase due to more sophisticated 5G specifications
Apple’s new 5G iPhone will drive telecom carriers globally to accelerate 5G network upgrade
Source: Credit Suisse Research, Tom’s Guide. For illustrative purposes only. This material is intended as a broad overview of the portfolio managers' current style, philosophy and process. Specific securities identified and described
do not represent all of the securities purchased, sold or recommended for the strategy. It should not be assumed that any investments in securities or companies identified were or will be profitable.
5G Smartphone Specifications
Model
Samsung
Galaxy S20
Huawei
P40 Pro
Redmi
10X 5G
Vivo
iQOO Z1
Oppo
Reno 4 5G
For sale Mar-20 Apr-20 May-20 Jun-20 Jun-20
Price from US$740 US$900 US$230 US$ 350 US$440
Processor Qualcomm/ Samsung Hisilicon Mediatek Mediatek Qualcomm
RAM 12GB 8GB 6/8GB 6/8GB 8GB
Storage 128GB 128/256GB 64/128/256GB 128/256GB 128/256GB
5G iPhone Estimated Specifications
Apple iPhone 12 Pro
Oct-20
US$1,049
Qualcomm
6GB
128/256/512GB
20For Sophisticated Investors Only
How is Current Valuation of the Portfolio Companies?
• Valuation Discipline: We believe that valuations of most of our portfolio holdings remain attractive and most importantly
fundamentals are improving thanks to the accelerating 5G related trends. Given our valuations discipline, we have been taking
profits on some of the strong outperformers in software & internet sectors, and we have shifted more towards semiconductor &
hardware companies in 5G.
• Focus on Longer Term Outlook: It is challenging to time the market. As a strategic investor in the 5G structural trend, we try
not to be too tactical and stay focused on the medium/longer term outlook.
Valuations remain attractive relative to the meaningful growth outlook as 5G ramps up
Source: Neuberger Berman, as of August 31, 2020. For illustrative purposes only. This material is intended as a broad overview of the portfolio managers' current style, philosophy and process. Specific securities identified and
described do not represent all of the securities purchased, sold or recommended for the strategy. It should not be assumed that any investments in securities or companies identified were or will be profitable.
NB 5G Connectivity Fund MSCI ACWI MSCI ACWI Info Tech
Weighted Avg P/E (1 yr forward) 33.1x 23.8x 30.0x
Weighted Avg 3-5yr EPS Growth 25.9% 11.7% 15.3%
PEG ratio 1.28 2.03 1.96
21For Sophisticated Investors Only
Is 5G A Health Hazard?
• 5G Health Concerns? It is believed that 5G will emit “ultra high frequencies and intensity” that will increase radiofrequency
radiation exposure.
• 5G Less Harmful Than Sunlight: According to research studies, the electromagnetic radiation from the sun is far greater than
5G cell towers. 5G signals are non-ionizing in nature (which means the radiation is too weak to have any health effect), while
UV rays are closer to ionizing spectrum and therefore more harmful.
• Rising Opportunity in Testing: Regulators have stringent industry requirements to mitigate any potential health issues. We
see rising opportunity in testing equipment makers such as Keysight Technologies and Anritsu that ensure 5G towers and
devices meet industry standards.
The sun is more dangerous than radiofrequencies emitted by 5G towers
Source: https://www.fcc.gov/consumers/guides/wireless-devices-and-health-concerns; https://socratic.org/questions/what-is-the-electromagnetic-spectrum-used-for . For illustrative purposes only. This material is intended as a broad
overview of the portfolio managers' current style, philosophy and process. Specific securities identified and described do not represent all of the securities purchased, sold or recommended for the strategy. It should not be assumed
that any investments in securities or companies identified were or will be profitable.
22For Sophisticated Investors Only
Next Generation Connectivity
Investment Performance Results – As of June 30, 2020
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)
MSCI ACWI (Net)
(All Country
World Index) (%)
No. of
Accounts
Market Value
($, m)
Total Firm
Assets
($, bn)
% of Firm
Assets
Internal
Dispersion
Composite
(%)
MSCI ACWI (Net)
(All Country World
Index)
(%)
YTD Jun-
20209.89 9.43 -6.25 ≤ 5 5,411.0 -- -- -- -- --
2019 40.79 39.60 26.60 ≤ 5 4,229.7 355.8 1.19 -- -- --
2018 -7.99 -8.77 -9.41 ≤ 5 1,799.9 304.1 0.59 -- -- --
23For Sophisticated Investors Only
Next Generation Connectivity
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 theGIPS® standards. Neuberger Berman has been independently verified for the period January 1, 2011 to December 31, 2018. Verification assesses whether (1) the firm has complied with all the composite constructionrequirements 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. Verification does not ensure theaccuracy of any specific composite presentation. The verification reports are available upon request.
• 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 firms were independently verified for the periods January 1, 1997to December 31, 2010 and January 1, 1996 to December 31, 2010, respectively.
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, NeubergerBerman Europe Ltd., Neuberger Berman Asia Ltd., Neuberger Berman East Asia Ltd., Neuberger Berman Singapore Pte. Ltd., Neuberger Berman Taiwan Ltd, Neuberger Berman Australia Ltd., Neuberger Berman TrustCompany N.A., Neuberger Berman Trust Company of Delaware N.A., NB Alternatives Advisers LLC and Neuberger Berman Breton Hill ULC.
Policies
• Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.
Composite Description
• The Next Generation Connectivity Composite (the "Composite") includes the performance of all fee-paying Next Generation Connectivity portfolios, with no minimum investment, managed on a fully discretionary basis by the Neuberger Berman Global Equity Research Department. The Next Generation Connectivity strategy is a global equity strategy designed to benefit from the build out and investment in future connectivity networks globally as well as beneficiaries of the new technologies that will be enabled by those networks. The Composite creation date is February 2018 and the performance inception date is January 2018. A complete list of Neuberger Berman's composites is available upon request.
Primary Benchmark Description
• The benchmark is the MSCI ACWI (Net) (All Country World Index) (the "Index"). The Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets. The index consists of 49 country indexes comprising 23 developed and 26 emerging market country indexes. The developed market country indexes included are: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom and the United States. The emerging market country indexes included are: Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Pakistan, Peru, the Philippines, Poland, Qatar, Russia, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey, and the UAE. Net total return indexes reinvest dividends after the deduction of withholding taxes, using (for international indexes) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. Effective June 2016, the primary benchmark was changed from the MSCI ACWI Index (Gross) to the MSCI ACWI Index (Net) to better reflect the holdings held in the composite.
Reporting Currency
• Valuations are computed and performance is reported in U.S. Dollars. Performance includes reinvestment of dividends and other earnings.
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: 0.85% per annum.
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.
24For Sophisticated Investors Only
Disclaimer
Neuberger Berman Investment Funds plc (the “Fund”) is authorised by the Central Bank of Ireland (the “Central
Bank”) as an Undertaking for Collective Investment in Transferable Securities under the European Communities
(“UCITS”) Regulations 2011 (S.I. 352 of 2011) of Ireland, as amended. The Fund mentioned in this document
may not be eligible for sale in some countries and it may not be suitable for all types of investor. Shares in the
fund may not be offered or sold directly or indirectly into the United States or to U.S. Persons; for further
information see the current prospectus.
We do not represent that this information, including any third party information, is accurate or complete and it
should not be relied upon as such. Opinions expressed herein reflect the opinion of Neuberger Berman Group
and its affiliates (“Neuberger Berman”) and are subject to change without notice.
This document is for information purposes only and it should not be regarded as an offer to sell or as a
solicitation of an offer to buy the securities or other instruments mentioned herein. No part of this document may
be reproduced in any manner without the written permission of Neuberger Berman.
Past performance is not indicative of future results. For further details of the investment risks, please refer to the
current prospectus. Please note that any dividends/interest which the Fund may receive may be subject to
withholding tax. The benchmark does not take into account the effects of tax and the deduction is therefore not
reflected in the benchmark return illustrated herein. The investment objective and performance benchmark is a
target only and not a guarantee of the Fund performance. The index is unmanaged and cannot be invested in
directly. Index returns assume reinvestment of dividends and capital gains and unlike fund returns do not reflect
fees or expenses. Adverse movements in currency exchange rates can result in a decrease in return and a loss
of capital. Investments of each portfolio may be fully hedged into its base currency potentially reducing currency
risks but may expose the portfolio to other risks such as a default of a counterparty.
Monthly and weekly Distributing Classes will distribute out of income and may also pay out of capital which will
be eroded; investors in these classes should be aware that the payment out of capital may have different tax
implications from distributions of income and should seek tax advice. In respect of the C, C1, C2, E and B share
classes a contingent deferred sales charge may be payable to the Investment Manager in line with the provisions
of the Fund’s prospectus.
This document has been issued for use by the following Neuberger Berman entities: in Hong Kong by Neuberger
Berman Asia Limited [“NBAL”], which is licensed and regulated by the Hong Kong Securities and Futures
Commission to carry on Types 1, 4 and 9 regulated activities, as defined under the Securities and Futures
Ordinance of Hong Kong (Cap.571) (the “SFO”); in Singapore by Neuberger Berman Singapore Pte. Limited
(NBS), which currently carries out the regulated activity of fund management under the Securities and Futures
Act (Chapter 289) (“SFA”) and operates as an Exempt Financial Adviser under section 23(1)(d) of the Financial
Advisers Act (Chapter 110) (“FAA”) of Singapore. Under the FAA, NBS is exempted from Sections25, 27 and 36
of the FAA, where its financial advisory service is provided to an accredited or expert investor (as defined in
Section 4A of the SFA).
This document is being provided by NBAL and NBS on a confidential basis to an “accredited investor”,
“institutional investor”, “professional investor”, “QPI”, “sophisticated investor”, “wholesale investor” and/or other
such qualified person, in each case as defined under the laws of the relevant jurisdiction listed below, and all of
which together are generically referred to as a “Sophisticated Investor”, on a “one-on-one” basis for informational
and discussion purposes only. This document is intended only for the Sophisticated Investor to which it has been
provided, is strictly confidential and may not be reproduced or redistributed in whole or in part nor may its
contents be disclosed to any other person (other than such Sophisticated Investor’s agents or advisers) under
any circumstances.
Important information for Sophisticated Investors in:
Hong Kong: The contents of this document have not been reviewed by any regulatory authority in Hong Kong.
Please note that (i) Securities may not be offered or sold in Hong Kong by means of this document or any other
document other than to "professional investors" as defined in Part I of Schedule 1 to the SFO.
Singapore: Any offer or invitation which is the subject of this document is only allowed to certain persons and
institutions and not to the retail public. Moreover, this document or any written materials
issued in connection with the offer is not a prospectus as defined in the Securities and Futures Act, Chapter 289
of Singapore (the "SFA"). Accordingly, statutory liability under the SFA in relation to the contents of prospectuses
would not apply. The Offeree to whom this document is provided should consider carefully whether the
investment, if any, is suitable for it.
This document and any other document or material in connection with the offer or sale, or invitation for
subscription or purchase, of any Security may not be circulated or distributed, nor may any Security be offered or
sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to the
public or any member of the public in Singapore other than (i) "institutional investors" pursuant to Section 304 of
the Act, (ii) "relevant persons" pursuant to section 305(1) of the Act, (iii) any person pursuant to Section 305(2) of
the Act, or (iv) otherwise pursuant to, and in accordance with the conditions of, other applicable provisions of the
Act.
The Portfolios are restricted schemes under the Sixth Schedule to the Securities and Futures (Offers of
Investments) (Collective Investment Schemes) Regulations. The offer, holding and subsequent transfer
of Shares are subject to restrictions and conditions under the Act.
You should consider carefully whether you are permitted (under the Act and any laws or regulations applicable to
you) to make an investment in the Shares and whether any such investment is suitable for you and you should
consult your legal or professional advisor if in doubt.
Neuberger Berman is a registered trademark.
© 2020 Neuberger Berman.