neuberger berman global thematic equity fund berman... · firm assets under management (aum)...

Neuberger Berman Global Thematic Equity FundThird Quarter 2018

For Professional Client Use Only

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

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 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

5

Global Perspective and Local Investment Presence

32 Cities

20 Countries

17 Portfolio Management Centers

600 Investment Professionals Worldwide

425 Client Professionals Worldwide Institutional $210

66%

Intermediary $56

18%

HNW $50

16%

AUM BY

CLIENT (bn)

Americas $220

70%

Europe/Middle

East $41

13%

Asia Pacific $55

17%

AUM BY

REGION (bn)

Portfolio management center

NEW YORK

ATLANTA

TAMPA

TORONTO

BOSTON

WEST PALM BEACH

CHICAGO

DALLAS

SAN FRANCISCO

LOS ANGELES WILMINGTON

BOGOTA

BUENOS AIRES

MADRID

DUBAI

SINGAPORE

MELBOURNE

SYDNEY

TOKYO

HONG KONG TAIPEI

SHANGHAI SEOUL

BEIJING

LONDON

MILAN

PARISFRANKFURTZURICH

THE HAGUE

LUXEMBOURG

Firm Headquarters

Europe, Middle East, Africa &

Latin America

Regional Headquarters

Asia Pacific

Regional Headquarters

ROME

As of September 30, 2018.

6

Investment Team Resources

Investors connected and supported by an integrated platform

1. As of August 31, 20182. Awarded “Best Buy-Side Trading Technology” at the 2016 Markets Choice Awards.

INVESTMENT TEAM

Professionals across public and private

markets, equity, fixed income and

alternatives

Connections through daily interactions and

proprietary tools

Portfolio managers and research analysts:

• 190 equity professionals

• 148 fixed income professionals

• 126 alternatives professionals

• 30 multi-asset class professionals

Dedicated Big Data analytics team

ESG data and proprietary ratings

27 risk management professionals

17 internal audit, and guideline monitoring

professionals

Breadth of Perspectives Research1 Independent Oversight1

419 client professionals across 32 cities 51 trading professionals across an award

winning platform2

Leading industry technology (e.g., Aladdin,

State Street, Charles River)

1,589 research meetings with company

management teams at our offices in 2017

Active engagement on material

environmental, social and

governance topics

Dedicated ESG Investing team

Client Relations1 Operating Platform1 Engagement

7

Environmental, Social and Governance Investing

ESG factors are considered by portfolio managers across the platform

* Avoidance screens can be combined with other ESG integration strategies based on client requests.Note: Investment strategies’ ESG integration approaches may evolve over time.

Philosophy

As a firm, Neuberger Berman believes that material environmental, social and governance characteristics are an important driver of long-term investment returns from both an

opportunity and a risk mitigation perspective.

Distinctive Features

• Dedicated ESG Investing team and ESG Committee that supports strategy-specific ESG integration across our platform

• Proprietary ESG ratings based on principle of financial materiality developed by sector analysts using range of data sources

• Extensive multi-asset engagement program, clear ESG policy and engagement principles, as well as comprehensive proxy voting guidelines, including industry-leading detail on E&S

issues through over 1,500 equity meetings hosted in our offices with another 750 solely in the fixed income space in 2017

• UN-supported Principles for Responsible Investment awarded Neuberger Berman A+ scores for ESG strategy, governance and integration across asset classes

ESG Integration Framework

ASSESS AMPLIFY

Excluding particular companies

or whole sectors from

investment universe

Considering the valuation implications

of ESG risks and opportunities

alongside traditional factors in the

investment process

Focusing on ‘better’ companies

based on environmental, social and

governance characteristics

Seeking to intentionally generate

social and environmental impact

alongside a financial return

Separately Managed Accounts

have customized investment criteria

based on a client’s values and

preferences

UCITS avoid companies that

produce anti-personnel land

mines, cluster munitions,

biological/chemical weaponry

Emerging Market Debt

team assesses the ESG

characteristics of sovereign issuers

Global Non-Investment

Grade Credit team incorporates

ESG assessment into internal

credit ratings

Sustainable Equity strategy is built on

the belief that responsibility is a

hallmark of quality and invests in U.S.

companies that have a sustainable

competitive advantage.

Customized Short Duration Investment

Grade Credit strategy focuses on

‘best-in-class’ issuers as well as taking

sector bias to lower portfolio carbon

footprint and increase diversity vs.

benchmark

Municipal Fixed Income Impact

strategy invests in projects that

support socially and environmentally

sustainable communities, such as

mass transit, affordable housing, and

school classrooms, with a bias toward

underserved communities

Private Markets Impact strategy

targets investments with a thematic

lens to address the UN Sustainable

Development Goals

AIM FOR IMPACT

Integration Approach

Neuberger Berman

Investment Strategy

Examples

AVOID*

Supported by Active Engagement with Issuers to Influence Outcomes

8

GLOBAL THEMATIC EQUITIES

Global Thematic Equities Team

Experienced team of investors supported by NB’s centralized in-house research resources

_______________________As of September 30, 2018. Staffing is subject to change without notice

Daniel P. Paduano, CFA

Portfolio Manager

• Georgetown University BA

• NYU Stern School MBA

• 48 years industry experience

• Joined the firm in 1977

Sherrell J. Aston, Jr.

• Portfolio Manager

• University of Virginia BA

• Columbia University MBA



PADUANO GLOBAL THEMATIC STRATEGY

Jason H. VintiadisPortfolio Manager

• Middlebury College BA

• MIT Sloan School MBA



Maximiliano RohmPortfolio Manager

• Universidad Torcuato Di Tella

• MIT Sloan School MBA



TIMOTHY CREEDON

Managing Director, Neuberger Berman Global Equity Research Department

41 dedicated research professionals. Analysts average 18 years investment experience

CONSUMER ENERGY & UTILITIES HEALTH CARE OTHERFINANCIAL SERVICES TECHNOLOGY, MEDIA

& TELECOM

INDUSTRIALS &

MATERIALS

Consumer Staples

Jacob Gamerman

Consumer Discretionary

Kevin McCarthy

John San Marco

Asian Consumer

Discretionary

Baoying Zhai

Pharma/Biotech

Terri Towers

Eric Boland

Health Care Services

Ari Singh

Macro Strategies

Raheel Siddiqui

Special Situations

Jonathan Shahrabani

Grant Parker

Thematic Research

Saurin Shah

Big Data

Mike Recce

Kai Cui

Liyi Li

Yang Zhou

Utilities/Infrastructure

Ronald Silvestri

Energy

Todd Heltman

Jeff Wyll

Matthew Lipton

Banks/Brokers/Insurance

Michelle Giordano

Kush Goel

Jingjing Xu

Cards/Exchanges

Scott Woodcock

Business Services

Charles Murphy

Asian Financials/

Property

Alan Tsang

Hardware/Semiconductors

Michael DiTillio

Daniel Flax

Software/IT Services

Hari Srinivasan

Andre Chan

Telecom/Media

John Carr

Asian Technology,

Media & Telecom

Yan Taw (YT) Boon

Fan Liu

Hank Hsu

Kento Sugimoto

Industrials

Martin Sankey

Michael Barr

John Hirt

Materials

Marisa Hernandez

Jared Mann

Jim Tyre

Asian Industrials

Leo Lin

For Professional Client Use Only 10

http://people.nb.com/Person.aspx?accountname=NB/marohm

Why Neuberger Berman for Global Thematic Equities

An experienced team with a differentiated approach

• Dedicated to Global Thematic Equities strategy since 1991

• Investment team averages 25 years of experience, led by Dan Paduano, a pioneer in thematic investing

• Leverage Neuberger Berman investment platform, including the Neuberger Berman Global Equity Research Department

EXPERIENCED TEAM

LEVERAGING

NB PLATFORM

• Thematic approach results in differentiated portfolio: ~96% active share over last 5 years

• High conviction portfolio of typically 20-30 thoroughly researched companies

• Defensive growth profile, delivering attractive risk adjusted returns across different market environments

DIFFERENTIATED,

HIGH-CONVICTION

PORTFOLIO

• Long term oriented investors – annual turnover of ~25%

• Team is significantly invested alongside clients

• All four investment team members are shareholders of Neuberger Berman

PATIENT

AND

ALIGNED

WITH INVESTORS

_______________________This material is intended as a broad overview of the Portfolio Managers’ style, philosophy and process and is subject to change without notice. Portfolio Managers’ views may differ from those of other Portfolio Managers as well as the views of Neuberger Berman.


Fund Snapshot

Thematic orientation underpinning an unconstrained, high conviction approach

_______________________This material is intended as a broad overview of the Portfolio Managers’ style, philosophy and process and is subject to change without notice. Portfolio Managers’ views may differ from those of other Portfolio Managers as well as the views of Neuberger Berman. All information is current as of the date of this material and is subject to change without notice.

• Positions portfolio in the way of powerful secular shifts

• Themes provide visibility and predictability in an uncertain world

• Focuses attention on the signal and away from the noise

• Global applicability is a defining characteristic of our themes

• Best in class companies are located around the world

• Leading corporations come in all sizes

• Scale can be an advantage: both large and small

• High conviction investments with long term horizon

• Typically 20-30 investments: diminishing effect of diversification beyond 25

• High active share & differentiation

• Our Themes are inherently environmentally and socially informed

• Forward looking organizations embrace ESG principles

THEMATIC

GLOBAL

ALL CAP

HIGH CONVICTION

ESG

(SOCIALLY RESPONSIBLE)


Rationale for Thematic Approach

Global Population Aged 80+ Evolution Forecast (in Millions)

32

102

161

395

1975 2009 2025E 2050E

Global Middle Class Evolution Forecast (in Millions)

3,030

3,766

4,617

5,412

2015 2020E 2025E 2030E

_______________________Source: United Nations. Brookings. CISCO VNI Mobile, 2017.This material is intended as a broad overview of the Portfolio Managers’ style, philosophy and process and is subject to change without notice. Portfolio Managers’ views may differ from those of other Portfolio Managers as well as the views of Neuberger Berman. Information is obtained from sources deemed reliable, but there is no representation or warranty as to its accuracy, completeness or reliability. All information is current as of the date of this material and is subject to change without notice.

Water Demand & Supply Gap Analysis (Bm3) Global Mobile Data Traffic Forecast (in Exabytes per Month)

711

17

24

35

49

2016 2017E 2018E 2019E 2020E 2021E

Themes provide visibility and predictability in an uncertain world


Representative Account Themes Overview

_______________________This material is intended as a broad overview of the Portfolio Managers’ style, philosophy and process and is subject to change without notice. Portfolio Managers’ views may differ from those of other Portfolio Managers as well as the views of Neuberger Berman. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. The data shown is of a representative account, is for informational purposes only and is not indicative of future portfolio characteristics. Actual results may vary due to specific client guidelines and other factors.

Themes position portfolio in the way of secular shifts, enhancing visibility, predictability and focus


HOLDINGS THESIS HOW TO PLAY

Corning (GLW), EBAY (EBAY), Fedex (FDX), Delta (DAL),

Expedia (EXPE), PayPal (PYPL), Alibaba (BABA)

New habits and technology transforms how the global

middle class consumes. 3+ billion people consume 66%+

of global consumption.

Goods and services for emerging consumers; "experiences

over things"; enablers of digital and mobile transactions.

Alphabet (GOOGL), Nice Systems (NICE), Thomson Reuters

(TRI), Western Digital (WDC), Microsoft (MSFT), Symantec

(SYMC), Inovalon (INOV)

Exponentially growing data requires smart systems to

enable advanced decisioning by humans and robotic

systems.

Developers of software and/or systems that enable advanced

analytics: making data intelligent

Amdocs (DOX), Corning (GLW), Texas Instruments (TXN),

Thomson Reuters (TRI), Western Digital (WDC), Microsoft

(MSFT), ASM Lithography (ASML), GTT Communications (GTT)

Anytime, anywhere connectivity is finally here and is

transforming media.

Systems and software developers that enable anytime

anywhere any device connectivity (voice, video, data).

Quanta Services (PWR), Cabot Oil & Gas (COG)Global energy infrastructure fails to meet growing

demand.

Enablers of distribution and delivery of hydrocarbons &

electricity to the point of consumption.

TE Connectivity (TEL), Allegheny Technologies (ATI)Global energy imbalances require of greater efficiencies --

do more with less -- to improve economics.

Developers of technologies and services that allow all of us to

do more with less.

Tetra Tech (TTEK)Water is increasingly scarce & inaccessible; very true in

high demand areas.

Water treatment, recycling, conservation & transportation

businesses.

Providence Service (PRSC), Inovalon (INOV), Aon (AON) and

Perrigo (PRGO), Stericycle (SRCL)

Extended life expectancies to require increased

medications & care.

Developers of healthcare products & services for an aging

population.

Pets-at-Home (PETS-GB)

Pets increasingly common among baby boomers (now

with empty nests) & millennials (single & career-focused),

the two largest age cohorts in developed economies.

Providers of animal medical treatment, nutrition and other

services.

Scholastic (SCHL)

Education is critical to progress and advancement, and so

individuals, businesses and policy makers are

increasingly investing in education.

Enablers of higher quality, lower cost education, both for

individuals and employees.

14

Evolution of Themes

Themes are intended to span many years and evolve naturally rather than suddenly change

• In the late 90s the hype of new business

development and legacy model evolutions

enabled by interconnectivity got ahead of the

reality of the technology

• Significant investment in systems, software

and devices necessary to actualize voice,

video and data, anytime, anywhere on any

device

PERSONALIZATION OF MEDIA EMERGING GLOBAL CONSUMER

• Global economic growth and

industrialization was leading to increased

prosperity across a number of emerging

markets, underpinning an emerging

consuming class

• Natural migrations from the village to the

city and transitions from the bicycle to the

scooter to the car drove demand for the

gamut of consumer products and an

increasing number of services

RISING VALUE OF OIL & GAS

• WTI at $13-$15 in late 90s; well below

marginal cost

• EM growth drove oil demand higher

beyond available supply

• We anticipate price would increase

towards cost to produce

SMART SYSTEMS

EVOLVING GLOBAL CONSUMER

ENERGY EFFICIENCY

• 2010 Apple introduces the iPad, Vodafone

and Verizon introduce 3G wireless broadband

connectivity - ubiquitous access and anytime,

anywhere connectivity finally available

• Exponentially growing data requires smart

systems to enable advanced decisioning by

humans and robotic systems

• Consumption is evolving fueled by

technology, digitization and a maturing

consuming class

• Global consumers increasingly focused

on experiences and leveraging

technology to enhance consumption

• Global energy imbalances and the

economic benefits of efficiency drive an

increased emphasis on alternatives,

renewables and conservation

2000s

2010s

2020s

2000s

2010s

2020s

ENERGY INFRASTRUCTURE

• Rising global demand drove E&P beyond

the limits of historically reliable basins

• ‘New’ oil from deep water & shale

required pipelines, storage, equipment &

services to reach end markets



From Themes to Investments

Highly selective on businesses with a focus on return potential and rigorous risk management


BUSINESSESRISK

MANAGEMENT

THEMES

TYPICALLY

20-30 STOCKS• Prefer Enablers –

companies that enable

technologies, goods and

services

• Disciplined valuation is a

critical aspect of return

potential (focus on FCF/Shr,

revenue growth, margin

improvements, & capital

structure)

• Focused portfolio with strict

construction guidelines (at

theme & holdings level)

• Multiple Themes enhance

diversification

• Independent Risk Mgmt at NB

monitors risk

• Thematic approach enhances

visibility & predictability

• Secular shifts provide a signal through

the noise

• Enable the portfolio to transcend

cyclicality


NEUBERGER BERMAN GLOBAL THEMATIC EQUITY FUND

Neuberger Berman Global Thematic Equity Fund Summary Terms

Investment Manager Neuberger Berman Europe Limited

Sub – Investment Manager Neuberger Berman Investment Advisers LLC

Inception Date April 27, 2018

Investment Objective & Strategy

Seeks to achieve long-term capital appreciation through investment in a portfolio of equity holdings that are exposed to

global long-term themes.

Bottom up thematic focused strategy investing in 20-30 global stocks.

Tracking Error ~5%

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 CUSIP: G6430T809

ISIN: IE00BFMHRK20

Benchmark MSCI World(Net) Index

Base Currency US Dollars


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

18

Balanced thematic exposures inform our agnostic approach to size and geography

Fund Overview

Top 20 Holdings

_______________________Source: Neuberger Berman. Data as of 9/30/2018. Fund information (characteristics, holdings, weightings, etc.) is subject to change without notice. It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities in this list. Indexes are unmanaged and are not available for direct investment. Unless otherwise indicated, returns reflect reinvestment of dividends and distributions. Investing entails risks, including possible loss of principal.

Thematic Distribution1


Holding

Portfolio

Weight Business Domicile Theme

Inovalon 4.8 Healthcare Tech USA Health & Wellbeing

Amdocs 4.7 IT Services Israel Personalization of Media

Symantec 4.6 Security Software USA Smart Systems

Western Digital 4.4 Tech Hardware USA Personalization of Media

Pets At Home 4.4 Specialty Retail UK Humanization of Pets

Quanta Services 4.4 Construction & Engineering USA Energy Efficiency

GTT Comm. 4.3 IT Services USA Personalization of Media

Perrigo 4.2 Pharmaceuticals Ireland Health & Wellbeing

Scholastic 4.1 Media USA Education

Providence Srvs 4.1 Healthcare Services USA Health & Wellbeing

Allegheny Tech 4.0 Specialty Materials USA Energy Efficiency

Stericycle 4.0 Commercial Services USA Health & Wellbeing

Cabot Oil & Gas 4.0 Oil & Gas Production USA Energy Infrastructure

Aon Plc 3.9 Insurance Services UK Health & Wellbeing

Thomson Reuters 3.9 Information Services Canada Personalization of Media

Ebay 3.8 E-Commerce USA Evolving Global Consumer

Alphabet 3.8 Tech USA Smart Systems

Delta Air Lines 3.7 Travel USA Evolving Global Consumer

TE Connectivity 3.6 Tech Hardware Switzerland Energy Efficiency

Expedia Group 3.1 Online Travel USA Evolving Global Consumer

TOTAL 81.8%

Health & Wellbeing

21%

Smart Systems18%

Personalization of Media

16%

Evolving Global Consumer

16%

Energy Infrastructure

9%

Energy Efficiency

7%

Humanization of Animals

5%

Education5%

Rising Value of Water

3%

19

Low holdings overlap with benchmark* complements well with most equity investment programs

Fund Differentiation

Fund Top Holdings vs Benchmark* Weight (%) Benchmark* Top Holdings vs Fund Weight (%)

_______________________Source: Neuberger Berman. Data as of 9/30/2018. (*) Benchmark: MSCI World Index. Fund information (characteristics, holdings, weightings, etc.) is subject to change without notice. It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities in this list. Indexes are unmanaged and are not available for direct investment. Unless otherwise indicated, returns reflect reinvestment of dividends and distributions. Investing entails risks, including possible loss of principal.


Holding Portfolio Weight

Benchmark

Weight

Portfolio Over

/ (Under)

Inovalon 4.8 0.0 4.8

Amdocs 4.7 0.0 4.7

Symantec 4.6 0.0 4.6

Western Digital 4.4 0.0 4.4

Pets At Home 4.4 0.0 4.4

Quanta Services 4.4 0.0 4.4

GTT Comm. 4.3 0.0 4.3

Perrigo 4.2 0.0 4.2

Scholastic 4.1 0.0 4.1

Providence Srvs 4.1 0.0 4.1

Allegheny Tech 4.0 0.0 4.0

Stericycle 4.0 0.0 4.0

Cabot Oil & Gas 4.0 0.0 4.0

Aon Plc 3.9 0.1 3.8

Thomson Reuters 3.9 0.0 3.9

Ebay 3.8 0.1 3.7

Alphabet 3.8 0.9 2.9

Delta Air Lines 3.7 0.0 3.7

TE Connectivity 3.6 0.1 3.5

Expedia Group 3.1 0.0 3.1

TOTAL 81.8 1.2

Holding Index Weight Portfolio Weight

Portfolio Over /

(Under)

Apple 2.7 0.0 -2.7

Microsoft 2.0 0.0 -2.0

Amazon.com 2.0 0.0 -2.0

Alphabet 1.8 3.8 -2.0

Facebook 0.9 0.0 -0.9

JPMorgan Chase 0.9 0.0 -0.9

Johnson & Johnson 0.9 0.0 -0.9

Exxon Mobil 0.9 0.0 -0.9

Bank of America 0.7 0.0 -0.7

Berkshire Hathaway 0.7 0.0 -0.7

Visa 0.6 0.0 -0.6

Nestle 0.6 0.0 -0.6

Pfizer 0.6 0.0 -0.6

UnitedHealth Group 0.6 0.0 -0.6

AT&T 0.6 0.0 -0.6

Wells Fargo 0.6 0.0 -0.6

Home Depot 0.6 0.0 -0.6

Chevron 0.6 0.0 -0.6

Cisco Systems 0.5 0.0 -0.5

Verizon Communications 0.5 0.0 -0.5

TOTAL 19.3 3.8

20

$5

$20

$35

12/06 04/09 08/11 12/13 03/16 07/18

‘Enablers’: Corning (GLW)

Corning innovations ‘enable’ ubiquitous connectivity, next-gen mobility, cleaner emissions and safer

pharmaceuticals

• Theme: Evolving Global Consumer, Personalization of Media

• Anytime, anywhere connectivity is driving demand for

innovative, efficient displays as well as optimal connectivity

• Corning is a leader & innovator in displays, fiber, and more

recently focused on next-gen automotive windows & displays,

and drug packaging solutions

• Headquarters: USA

• Founded: 1851

• Market Cap: $27B

Potential in fiber & glass

more evident in 2H13

Began investing in 2008

thru 2012

Stock Price Evolution

Corning

In 4Q15 started

aggressive share

repurchase & dividend

program

Recognition

for

leadership in

next gen

mobility


_______________________As of Sept. 30, 2018

21

$20

$70

$120

06/11 11/12 04/14 09/15 02/17 07/18

‘Enablers’: NICE Systems (NICE)

Global software developer ‘enabling’ enterprises to deliver efficient, personalized consumer experiences

• Theme: Smart Systems

• Big Data is driving better decision making across

corporations globally

• NICE is a leading software developer that enables

businesses to better engage with customers and comply with

regulatory requirements

• Headquarters: Israel

• Founded: 1986


Began investing in 2H12 with

data analytics more prevalent

NICE grew FCF

3x since 2012/13

NICE Systems



_______________________As of Sept. 30, 2018

22

Long-Term: Tetra Tech (TTEK)

Patience and conviction measured by Tetra Tech investment

• Theme: Rising Value of Water

• Water scarcity is a major global risk (ranked among Top 3 by

World Economic Forum consistently since 2012) so water

related investments should continue to grow

• Tetra Tech is a global leader in consulting services related to

water infrastructure projects


• Founded: 1966

• Market Cap: $3.8B

$15

$30

$45

$60

01/10 09/11 06/13 02/15 11/16 07/18

Began position in 2011

and added in 2015

Awareness raised with US

Gov’t infrastructure

spending plans


Tetra Tech


_______________________As of Sept. 30, 2018

23

$0

$700

$1,400

08/04 05/07 03/10 12/12 10/15 07/18

Valuation Discipline: Alphabet (GOOGL)

Ownership mentality requires strict, through-cycle, quantitative discipline

• Theme: Smart Systems

• Software developers that help make data intelligent should

benefit in exponentially growing data environment

• Alphabet is a leader in online advertising, search (Google) &

cloud computing; vast data assets to develop smart tools such

as AI and autonomous driving


• Founded: 1998


Followed since 2004

IPO but valuation

generally excessive


Alphabet

Invested

during 2011

Euro Crisis

when free

cash flow

yield peaked

GOOGL grew

FCF almost

3x since

2010/11


_______________________As of Sept. 30, 2018

24

Fund Highlights

KEY TAKEAWAYS BENEFITS TO INVESTORS

THEMATICALLY DRIVEN APPROACH VISIBILITY & PREDICTABILITY

DOMICILE & CAPITALIZATION AGNOSTIC RETURNS CENTRIC PHILOSOPHY

HIGH CONVICTION VALUATION DISCIPLINE & MANAGEMENT

ENGAGEMENT

PREFER ENABLERS HELP MITIGATE RISKS

DIFFERENTIATED PORTFOLIO COMPLETE OR COMPLEMENTARY PROGRAM

MULTI THEMATIC PRESERVES THROUGH CYCLE FLEXIBILITY

EXPERIENCED & ALIGNED TEAM REPEATABLE PROCESS

PERSONALLY INVESTED

Investors benefit from our time tested approach in a series of ways


25

Outlook for 2018: Optimism with glints of Euphoria

MACRO: PROS

• Global growth firmed and improving

• Healthy balance sheets and ample liquidity

• Corporate capital spending and hiring intentions rising

• Governments worldwide incentivizing investment

MACRO: CONS

• Geopolitical tensions remain

• Federal fiscal deficits again on the rise

• Central banks ending accommodative policy

• Elevated business valuations in public and private markets

WATER

Climate concerns driving increased

spending on water related projects

Danone, Nestle and 600+ other

large companies spent over $23bn

in water related projects in 2016

The UN estimates $6.4tn need to be

spent in water related projects over

next 20 years

SMART SYSTEMS

Global data will more than double

by 2020, growing from ~800 to

1,100 exabytes, just in 2018

Big Data is transforming industries

with tens of billions spent annually

US companies absorbed 65% of big

data investments; China ~15%

ENERGY

INFRASTRUCTURE

In 3Q17 Pipeline Monthly Backlog

Indicators hit a new record high

In 2018 $22bn+ of Large Pipeline

projects and $27bn of Electrical

Transmission projects are

scheduled to proceed in North

America

EVOLVING

CONSUMER

Online spending estimated at

~$2,5tn in ‘18, up ~$300bn from ‘17

1.8bn online consumers, including

130m new consumers

50% spent from mobile devices

DOGMATIC VALUATION DISCIPLINE SERVES AS OUR HEDGE

“Bull markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria.”

John Templeton

_______________________Source: Western Digital Corp, McKinsey Research report, Baird Research, Keystone Capital Markets, The C, Three Group, Invesp, Deloitte, Bureau of Labor Statistics.This material is intended as a broad overview of the Portfolio Managers’ style, philosophy and process and is subject to change wi thout notice. Portfolio Managers’ views may differ from those of other Portfolio Managers as well as the views of the firm.


Risk Considerations

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.

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 the fund 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..

.


NEUBERGER BERMAN THEMATIC GLOBAL ALL CAP COMPOSITE

0

5,000

10,000

15,000

20,000

25,000

30,000

1990 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2018

PAM Paduano Thematic Global All Cap TPG PAM Paduano Thematic Global All Cap EOG S&P 500 Tot MSCI World Index - Net Return

Performance and Portfolio Characteristics

Source: Neuberger Berman, FactSet. (*) Data as of September 30, 2018. EOG = Equity Only (gross of fees).

Past performance is no guarantee of future results. Please refer to the attached GIPS® compliant composite presentations for complete performance information. Equity only (EO) performance excludes the performance

of the cash and or fixed income instruments that may also be held in the portfolio. Gross of Fee performance is net of commissions and before the deduction of advisory fees. For illustrative purposes only. The results illustrate the

growth of a hypothetical investment in the composite and index as of the date indicated and assume reinvestment of any dividends and distributions. Results shown are hypothetical and do not represent the returns of any particular

investment. 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. Indexes

are unmanaged and are not available for direct investment. Unless otherwise indicated, returns reflect reinvestment of dividends and distributions. Investing entails risks, including possible loss of principal.

Dot Com Boom and Bust

Financial Crisis

Paduano Global Thematic Strategy – Performance Overview*

2,337%Cumulative Paduano EOG return

(Since Inception)

96%Active Share vs MSCI World (Net)


YTD 2017 2016 3 Years 5 YearsSince

Inception

Total Portfolio Return (%, Gross) 1.53 25.6 14.9 14.5 10.9 10.7

Total Portfolio Return (%, Net) 0.69 24.2 13.6 13.2 9.7 9.4

Equity Only Return (%, Gross) 1.51 28.3 17.1 16.2 12.0 12.2

MSCI World Net (%) 5.43 22.4 7.5 13.5 9.3 7.7

Excess Return (%) -3.93 5.9 9.6 2.6 2.7 4.5

Volatility: Portfolio / MSCI World Net -- -- -- 10.1 / 9.0 10.3 / 9.5 13.7 / 14.2

Tracking Error (%) -- -- -- 5.7 5.2 6.7

Information Ratio (%) -- -- -- 0.17 0.32 0.44

Correlation (R-squared) / Beta -- -- -- 83.0 / 0.9 87.0 / 0.9 88.0 / 0.9

Up / Dn Capture (%) -- -- -- 105.2 / 98.2 109.6 / 96.5 88.5 / 98.1

29

Performance in Challenging Environments

_______________________Sources: Neuberger Berman. EOG = Equity Only (gross of fees). Past performance is no guarantee of future results. Please refer to the attached GIPS® compliant composite presentations for complete performance information. Equity only (EO) performance excludes the performance of the cash and or fixed income instruments that may also be held in the portfolio. Gross of Fee performance is net of commissions and before the deduction of advisory fees. For illustrative purposes only. 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. Indexes are unmanaged and are not available for direct investment. Unless otherwise indicated, returns reflect reinvestment of dividends and distributions. Investing entails risks, including possible loss of principal.

Dot Com Boom and Bust Financial Crisis

Thematic approach & valuation discipline promoted focus & patience in challenging market environments


31.1

4.1 0.7

41.1

4.7 1.2

24.9

(13.2)(16.8)

21.0

(9.1)(11.9)

-30.0

-20.0

-10.0

0.0

10.0

20.0

30.0

40.0

50.0

1999 2000 2001

Paduano Thematic Global All Cap (TPG) Paduano Thematic Global All Cap (EOG)

MSCI World Index S&P 500 Index

3-Year Total Return

Paduano Thematic Global All Cap (TPG): 37.4%

Paduano Thematic Global All Cap (EOG): 49.6%

MSCI World Index: -9.8%

S&P 500: -3.1%

12.8

(37.4)

44.5

13.6

(46.0)

49.3

9.0

(40.7)

30.0

5.5

(37.0)

26.5

-60.0

-40.0

-20.0

0.0

20.0

40.0

60.0

2007 2008 2009

Paduano Thematic Global All Cap (TPG) Paduano Thematic Global All Cap (EOG)

MSCI World Index S&P 500 Index

3-Year Total Return

Paduano Thematic Global All Cap (TPG): 2.0%

Paduano Thematic Global All Cap (EOG): -8.4%

MSCI World Index: -16.0%

S&P 500: -16.0%

30

Flexible, Market Cap Agnostic Mandate

Leading businesses come in all shapes and sizes; market cap flexibility broadens opportunity set

Portfolio Allocation by Market-cap1 3 Year Attribution by Market Cap2

5 Year Attribution by Market Cap2

_______________________Source: Neuberger Berman. 1. Data as of December 31, 2017. 2. Data as of September 30, 2018. EOG = Equity Only (gross of fees). Past performance is no guarantee of future results. Please refer to the attached GIPS® compliant composite presentations for complete performance information. Equity only (EO) performance excludes the performance of the cash and or fixed income instruments that may also be held in the portfolio. Gross of Fee performance is net of commissions and before the deduction of advisory fees. For illustrative purposes only. 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. Indexes are unmanaged and are not available for direct investment. Unless otherwise indicated, returns reflect reinvestment of dividends and distributions. Investing entails risks, including possible loss of principal.


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Large Cap Mid Cap Small Cap Cash

Allocation Effect Selection + Interaction Total Effect

$50B+ -0.74 8.56 7.83

$20-50B -0.02 2.35 2.34

$10-20B -0.12 1.40 1.27

$5-10B -0.26 1.89 1.62

$2-5B 0.60 -2.34 -1.74

$0-2B 10.07 -8.66 1.41

Cash -0.63 -- -0.63

NA -0.06 -0.06 -0.12

Total 8.84 3.14 11.98

Allocation Effect Selection + Interaction Total Effect

$50B+ -1.05 14.11 13.06

$20-50B 0.26 7.34 7.60

$10-20B -0.10 1.08 0.98

$5-10B -0.14 5.91 5.78

$2-5B -2.83 7.99 5.16

$0-2B -9.68 11.78 2.10

Cash -0.11 -- -0.11

N/A -0.17 0.08 -0.09

Total -13.80 48.29 34.49

31

Performance Ranking by Theme

Annual Performance Ranking by Theme

A multi-theme approach is beneficial as it enhances portfolio diversification

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

ENERGY

INFRASTRUCTURESMART SYSTEMS

PERSONALIZATION

OF MEDIA

EMERGING GLOBAL

CONSUMERSMART SYSTEMS

HEALTH &

WELLBEING

PERSONALIZATION

OF MEDIA

PERSONALIZATION

OF MEDIASMART SYSTEMS

PERSONALIZATION

OF MEDIA

EMERGING GLOBAL

CONSUMER

HEALTH &

WELLBEINGOTHER

EMERGING GLOBAL

CONSUMER

PERSONALIZATION

OF MEDIAEDUCATION

PERSONALIZATION

OF MEDIA

HEALTH &

WELLBEING

HEALTH &

WELLBEING

HEALTH &

WELLBEINGENERGY EFFICIENCY

PERSONALIZATION

OF MEDIA

RISING VALUE OF

OIL & GASEDUCATION

HEALTH &

WELLBEING

HEALTH &

WELLBEING

RISING VALUE OF

WATER

EMERGING GLOBAL

CONSUMER

EMERGING GLOBAL


HUMANIZATION OF

PETSSMART SYSTEMS

HEALTH &

WELLBEING

RISING VALUE OF

WATER

RISING VALUE OF

OIL & GAS

ENERGY

INFRASTRUCTURE

RISING VALUE OF

WATER

HUMANIZATION OF

PETSEDUCATION SMART SYSTEMS

HUMANIZATION OF

PETS

RISING VALUE OF

WATER

ENERGY

INFRASTRUCTUREENERGY EFFICIENCY

PERSONALIZATION

OF MEDIA

HUMANIZATION OF

PETSENERGY EFFICIENCY

HUMANIZATION OF

PETSOTHER

ENERGY

INFRASTRUCTUREEDUCATION ENERGY EFFICIENCY OTHER

RISING VALUE OF

WATERSMART SYSTEMS

EDUCATION ENERGY EFFICIENCYRISING VALUE OF

WATER

RISING VALUE OF

OIL & GAS

RISING VALUE OF

OIL & GAS

HUMANIZATION OF

PETS

HUMANIZATION OF

PETSEDUCATION

RISING VALUE OF

OIL & GASEDUCATION

HUMANIZATION OF

PETS

EMERGING GLOBAL

CONSUMER

EMERGING GLOBAL

CONSUMER

HUMANIZATION OF

PETSENERGY EFFICIENCY ENERGY EFFICIENCY

RISING VLAUE OF

WATERENERGY EFFICIENCY OTHER

PERSONALIZATION

OF MEDIA

EVOLVING GLOBAL

CONSUMER

ENERGY

INFRASTRUCTURE

OTHERHEALTH &

WELLBEINGEDUCATION

ENERGY

INFRASTRUCTURE

ENERGY

INFRASTRUCTUREENERGY EFFICIENCY

ENERGY

INFRASTRUCTURE

RISING VALUE OF

OIL & GAS

ENERGY

INFRASTRUCTURE

HUMANIZATION OF

PETS

RISING VALUE OF

WATER

HUMANIZATION OF

PETS

RISING VALUE OF

WATEROTHER SMART SYSTEMS

EMERGING GLOBAL


RISING VALUE OF

OIL & GAS

RISING VALUE OF

WATEREDUCATION OTHER OTHER

ENERGY EFFICIENCYPERSONALIZATION

OF MEDIA

RISING VALUE OF

OIL & GASOTHER

PERSONALIZATION

OF MEDIAOTHER

RISING VALUE OF

WATER

ENERGY

INFRASTRUCTURE

EMERGING GLOBAL

CONSUMER

RISING VALUE OF

OIL & GAS

RISING VALUE OF

OIL & GAS

SMART SYSTEMSENERGY

INFRASTRUCTURESMART SYSTEMS EDUCATION

HEALTH &

WELLBEING

RISING VALUE OF

OIL & GASOTHER

EMERGING GLOBAL

CONSUMERENERGY EFFICIENCY

HEALTH &

WELLBEINGEDUCATION

_______________________Source: Neuberger Berman. As of December 31, 2017. EOG = Equity Only (gross of fees). Past performance is no guarantee of future results. Please refer to the attached GIPS® compliant composite presentations for complete performance information. Equity only (EO) performance excludes the performance of the cash and or fixed income instruments that may also be held in the portfolio. Gross of Fee performance is net of commissions and before the deduction of advisory fees. For illustrative purposes only. Results shown are hypothetical and do not represent the returns of any particular investment. 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. Indexes are unmanaged and are not available for direct investment. Unless otherwise indicated, returns reflect reinvestment of dividends and distributions. Investing entails risks, including possible loss of principal.


NEUBERGER BERMAN THEMATIC GLOBAL ALL CAP REPRESENTATIVE ACCOUNT

Potential Benefits of Multi-Thematic Approach

Different themes contribute to portfolio returns over time

Theme Contribution to Return – 2017 (%) Theme Contribution to Return – Last 5 Years (%)

_______________________Source: Neuberger Berman. As of December 31, 2017. EOG = Equity Only (gross of fees). Past performance is no guarantee of future results. Equity only (EO) performance excludes the performance of the cash and or fixed income instruments that may also be held in the portfolio. Gross of Fee performance is net of commissions and before the deduction of advisory fees. For illustrative purposes only. Results shown are hypothetical and do not represent the returns of any particular investment. This material is intended as a broad overview of the portfolio managers’ current style, philosophy and process. Representative account information (characteristics, holdings, weightings, etc.) is subject to change without notice. Indexes are unmanaged and are not available for direct investment. Unless otherwise indicated, returns reflect reinvestment of dividends and distributions. Investing entails risks, including possible loss of principal. The data shown is of a representative account, is for informational purposes only and is not indicative of future portfolio characteristics. Actual results may vary due to specific client guidelines and other factors.

6.2

5.8

5.7

5.0

4.5

0.5

0.4

0.4

0.0

-1.3

Emerging Global Consumer


Health & Wellbeing

Alternatives, Conservation and Efficiency

Smart Systems

Pets



[Cash]

Education

33.0

27.2

20.5

10.4

10.0

6.9

3.7

2.2

2.1

0.3

0.2

0.0


Smart Systems

Health & Wellbeing

Emerging Global Consumer

Alternatives, Conservation and Efficiency

Pets


Education


Rising Value of Oil & Gas

Disintermediation of Financial Services

[Cash]


Holdings Contribution to Investor Returns

Multiple holdings contributed to returns over time

Holding Contribution to Return – 2017 (%) Holding Contribution to Return – Last 5 Years (%)

_______________________Source: Neuberger Berman. As of December 31, 2017. EOG = Equity Only (gross of fees). Past performance is no guarantee of future results. Equity only (EO) performance excludes the performance of the cash and or fixed income instruments that may also be held in the portfolio. Gross of Fee performance is net of commissions and before the deduction of advisory fees. For illustrative purposes only. Results shown are hypothetical and do not represent the returns of any particular investment. This material is intended as a broad overview of the portfolio managers’ current style, philosophy and process. Representative account information (characteristics, holdings, weightings, etc.) is subject to change without notice. Indexes are unmanaged and are not available for direct investment. Unless otherwise indicated, returns reflect reinvestment of dividends and distributions. Investing entails risks, including possible loss of principal. The data shown is of a representative account, is for informational purposes only and is not indicative of future portfolio characteristics. Actual results may vary due to specific client guidelines and other factors.

2.8

2.6

2.1

1.8

1.7

1.7

1.6

1.3

1.3

8.0

2.5

All Other

Microsoft

NICE Ltd

Texas Instruments

TE Connectivity

Western Digital

Corning

Providence Service

Dominion Diamond

Allegheny Tech

Paypal 12.2

9.1

8.3

6.8

5.6

5.4

5.1

5.1

4.6

45.5

8.8

All Other

Covidien

Microsoft

West Pharmaceutical

ARRIS International

NICE Ltd

Charles River Lab

VCA Inc

Texas Instruments

Corning

Alphabet


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Consumer Discretionary Consumer StaplesEnergy FinancialsHealth Care IndustrialsInformation Technology MaterialsTelecommunication Services Utilities

Portfolio Allocation: Themes (vs Sectors)

Themes Evolution Sector Evolution

Themes are intended to span many years and evolve naturally rather than suddenly change

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Cash Smart SystemsRising Value of Water Rising Value of Oil & GasPets Personalization of MediaOther Health & WellbeingEnergy Infrastructure Emerging Global ConsumerEducation Disintermediation of Financial ServicesAlternatives, Conservation and Efficiency

_______________________Source: Neuberger Berman. Data as of 12/31/2017.Past performance is no guarantee of future results. For illustrative purposes only. This material is intended as a broad overview of the portfolio managers’ current style, philosophy and process. Representative account information (characteristics, holdings, weightings, etc.) is subject to change without notice. Indexes are unmanaged and are not available for direct investment. Unless otherwise indicated, returns reflect reinvestment of dividends and distributions. Investing entails risks, including possible loss of principal. The data shown is of a representative account, is for informational purposes only and is not indicative of future portfolio characteristics. Actual results may vary due to specific client guidelines and other factors.


Portfolio Allocation: Regions

Themes are global in nature with best in class businesses located around the world.

Portfolio Revenue Regional Breakdown2Portfolio Allocation by Region1

_______________________Source: Neuberger Berman. 1. Data as of December 31, 2017. 2. Data as of September 30, 2018. Past performance is no guarantee of future results. For illustrative purposes only. This material is intended as a broad overview of the portfolio managers’ current style, philosophy and process. Representative account information (characteristics, holdings, weightings, etc.) is subject to change without notice. Indexes are unmanaged and are not available for direct investment. Unless otherwise indicated, returns reflect reinvestment of dividends and distributions. Investing entails risks, including possible loss of principal. The data shown is of a representative account, is for informational purposes only and is not indicative of future portfolio characteristics. Actual results may vary due to specific client guidelines and other factors.


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

ROW USA Cash

As of 9/30/2018

Rest of the World

44.1%

North America

56.0%

37

INVESTMENT PROCESS

Investment Process

A disciplined investment approach that seeks to translate secular global trends into compelling

portfolio strategies

QUANTITATIVE

SCREENING

• Screen for high return on

equity, cash flow strength

and favorable earnings

prospects

• Evaluate statistical

metrics

• Integrate valuation

analysis and fundamental

research to form risk /

return profile

QUALITATIVE BUSINESS

ANALYSIS

• Conduct in-depth

research and analysis of

company/business

models, quality of

management, competitive

strength and record of

success

• Identify best in class

managements

demonstrating leadership

that encompasses the

environment, workplace

and community

TRANSACTION

DISCIPLINE

• Determine catalysts that

lead to investment action

• Recognize that entry point

is a key determinant of

downside risk

• Seek companies with

50%–100% appreciation

potential over three to five

years

RISK

MANAGEMENT

• Emphasize valuation

based portfolio controls

• Evaluate liquidity of target

equity

• Maintain position limits to

enforce diversification

• Retain cash if lacking an

attractive opportunity

IDENTIFY SECULAR

THEMES

• Forecast tomorrow’s

forecast

• Examine the broad

changes and trends

affecting societies,

economies and industries

• Draw heavily on our own

“out-of-the-box” research

efforts and firm’s

centralized research

group

• Themes are not about

fads. A theme has the

potential for long-term

influence


FOCUSED

PORTFOLIO

7-8 themes, maximum

thematic exposure of

20%, emphasizing

valuation


Identify Secular Themes

Forecast tomorrow’s forecast


• Readings: journals,

periodicals, books and

papers devoted to how the

world works

• Interaction with field

experts, thought leaders,

and policy makers

THINK AWAY

FROM WALL STREET

WHY THE THEMATIC

APPROACH?

• Creates parameters for

our scope

• Adds visibility and

predictability to an

uncertain world

• Provides a signal

through the noise

DISCOVER

LASTING CHANGE

• Characterize the contours

of the world in which we

live

• Evaluate demographic,

societal, technological

and political shifts

• Identify dominant global

themes with a minimum

of five to seven years of

visibility


Characterizes end market competitive

dynamics; a company’s total and served

markets; and secular/cyclical phases

Framing the cycles is critical to properly

timing the secular. We work with

independent consultants and analysts to

help us understand the global picture

from the top down.

Understand business model, execution

strategy and customer value proposition –

determine source/sustainability of

competitive advantage – quantify potential

ROIC and earnings power for the business

Track record of success – alignment of

management’s economic interest with

common shareholders – communication

with shareholders

POTENTIAL PORTFOLIO

CANDIDATES

Utilizing our dedicated team and the Neuberger Berman Global Equity Research Department

resources to find and evaluate the potential beneficiaries of our core themes.

Macro

Research

Industry

Research

Company

Research

Management

Profile

Qualitative and Quantitative Analysis

IDEA GENERATION

AND RESEARCH

• Price to earnings

• Enterprise value to EBITDA

• Free cash flow yield

• Return on equity

• Price to book value

EVALUATION PARAMETERS

LEVERAGE INSIGHTS OF NEUBERGER BERMAN

GLOBAL EQUITY RESEARCH DEPARTMENT

• Our thematic construct aims to capture

large secular shifts around the world,

inherently geared towards creating a

positive impact on society.

• Forward thinking companies are in tune

with environmental, social and

governance issues.

• Our themes have led us away from

alcohol, gaming, firearms and coal

companies among other negative

contributors to society.

• 34 research analysts, average 18 years

experience, in-depth knowledge of the

industries they cover

• Formally cover over 1,000 companies,

representing the Russell 1000 Index and

~70% of the MSCI ACWI Index by market cap

• Hosted 1,589 meetings with company

management teams at our offices in 2017

_______________________As of September 30, 2018. This material is intended as a broad overview of the Portfolio Managers’ style, philosophy and process and is subject to change without notice. Portfolio Managers’ views may differ from those of other Portfolio Managers as well as the views of the firm.


TYPICAL PORTFOLIO CONSTRUCTION

• Portfolio Holdings: 7-8 Themes; 20-30 Stocks

• Adequate Liquidity & High Conviction: 3.0- 4.0% at cost

• Maximum Thematic Exposure: 20%

Transaction Discipline and Risk Management

We focus on a diversified equity allocation and will invest in fixed income securities to help meet a

client’s risk tolerance and income needs


• Strict valuation-driven process used to determine candidates:

– Short term (12-18 months) and long-term (3-5 years) values

determined

– Establish downside and upside targets

BUY/WATCH LIST

• Seek 50–100% appreciation potential within 3 years

• Entry point is a critical determinant of downside risk

• Attractive companies that fail to qualify due to valuation are returned

to the ‘watch list

BUY DISCIPLINE

• Price targets achieved:

– Reduce - short term

– Exit - long term

• Early recognition of a shift in investment thesis fundamentals

– Failure to meet milestones

– Shift in fundamentals that undermine the investment thesis

• Alternative candidate offers superior investment profile

TYPICAL SELL DISCIPLINE


TEAM BIOS

Sherrell J. Aston, Jr.

Managing Director, Portfolio Manager

2002–Present Neuberger Berman

1997–2002 Security Analyst, Neuberger Berman, LLC

1996–1997 Security Analyst, Hull Capital, LLC

Columbia University, MBA

University of Virginia, BA

20 Years Industry Experience

Jason H. Vintiadis

Senior Vice President, Portfolio Manager


2007-2013 Tontine Associates, LLC.

2006-2007 Kenmar Global, LLC.

2000-2004 Envestnet Asset Management

MIT Sloan School of Management, MBA

Middlebury College, BA


Daniel P. Paduano, CFA

Managing Director, Senior Portfolio Manager


1973–1976 Senior Security Analyst, Arnhold and

S. Bleichroeder, Inc.

1968–1973 Security Analyst, Dean Witter & Co.

New York University, MBA

Georgetown University, BA


Biographies

Maximiliano Rohm

Senior Vice President, Portfolio Manager

2017-Present Neuberger Berman

2010–2017 Head Corp. Dev. LATAM Neuberger Berman

2006-2010 Corporate Strategy, Neuberger Berman

2002-2004 Transnational Foods Investment Fund

2000-2002 Investment Banking, Credit Suisse

MIT Sloan School of Management, MBA

Universidad Torcuato Di Tella, BA



Noureen McPartland

Portfolio Associate

1996 – Present Neuberger Berman

1995 – 1996 Metropolis Productions Inc.

Manhattan College, BA


Jennifer Jung

Portfolio Associate


2003 - 2005 RBC Wealth Management

1999 - 2003 Tucker Anthony Sutro (**acquired by RBC)

1998 – 1999 Prudential Securities

Baruch College, BA


Deborah DeLuca

Senior Trading Associate


1994 – 1995 Alex Brown

1987-1994 Prudential Securities

1985 – 1986 Guy Carpenter

Wagner College


Biographies

Carolina M. Lopez

Portfolio Associate

2007-Present Neuberger Berman

2003-2007 BMO Capital Markets

2000-2003 The Peak Organization

Baruch College, BBA



DISCLAIMERS AND DISCLOURES

Paduano Group - Thematic Global All Cap 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 10 Years

Since Inception

(1/1/1991)

Total Portfolio Return (Gross of Fee) 3.32 1.53 3.40 14.53 10.93 10.34 10.65

Total Portfolio Return (Net of Fee) 3.03 0.69 2.26 13.23 9.67 9.07 9.43

Equity Only Return (Gross of Fee) 3.49 1.51 3.54 16.16 11.96 10.31 12.20

MSCI World (Net) Index 4.98 5.43 11.24 13.54 9.28 8.56 7.66

S&P 500 Index 7.71 10.56 17.91 17.31 13.95 11.97 10.43

47


Calendar Year Rates of Return


Annual Rates of Return (%, for periods ended December 31)

Total Portfolio Return

(Gross of Fee)


(Net of Fee)

Equity Only Return

(Gross of Fee) MSCI World (Net) Index S&P 500 Index

2017 25.60 24.20 28.33 22.40 21.83

2016 14.92 13.56 17.13 7.51 11.96

2015 -4.78 -5.89 -5.16 -0.87 1.38

2014 10.38 9.12 10.75 4.94 13.69

2013 27.46 26.03 29.81 26.68 32.39

2012 14.51 13.23 16.44 15.83 16.00

2011 -5.00 -6.12 -5.73 -5.54 2.11

2010 12.17 10.88 13.18 11.76 15.06

2009 44.52 42.81 49.26 29.99 26.46

2008 -37.44 -38.21 -46.01 -40.71 -37.00

2007 12.81 11.44 13.63 9.04 5.49

2006 15.85 14.49 16.85 20.07 15.79

2005 7.10 5.97 7.65 9.49 4.91

2004 16.72 15.48 17.94 14.72 10.88

2003 28.78 27.45 33.65 33.11 28.68

2002 -17.21 -18.18 -20.33 -19.89 -22.10



Calendar Year Rates of Return – Continued


Annual Rates of Return (%, for periods ended December 31)


(Gross of Fee)


(Net of Fee)

Equity Only Return

(Gross of Fee) MSCI World (Net) Index S&P 500 Index

2001 0.72 -0.32 1.22 -16.82 -11.88

2000 4.05 3.04 4.74 -13.18 -9.11

1999 31.13 29.80 41.06 24.93 21.04

1998 8.14 7.02 11.76 24.34 28.58

1997 22.27 21.04 26.04 15.76 33.36

1996 24.94 23.62 28.71 13.48 22.96

1995 29.52 28.16 35.11 20.72 37.58

1994 -3.30 -4.33 -5.27 5.08 1.32

1993 10.42 9.27 14.88 22.50 10.08

1992 13.35 12.16 19.96 -5.23 7.62

1991 23.42 22.15 36.32 18.28 30.47


Paduano Group - Thematic Global All Cap Composite (Inception 1/1/1991)

Investment Performance Results – As of September 30, 2018



Composite Benchmark Composite 3 Year Standard Deviation

Total Return

(%, Gross

of Fees)

Total Return

(%, Net

of Fees)

Equity Only

Return

(%, Gross

of Fees)

MSCI World

(Net) Index

(%)

S&P 500 Index

(%)

No. of

Accounts

Market Value

($, m)

Total Firm

Assets

($, bn)

% of Firm

Assets

Internal

Dispersion

Composite

(%)

MSCI World

(Net) Index

(%)

S&P 500 Index

(%)

YTD

Sep-

2018

1.53 0.69 1.51 5.43 10.56 286 583.4 -- -- -- 10.06 9.03 9.05

2017 25.60 24.20 28.33 22.40 21.83 270 562.2 295.2 0.19 2.99 11.52 10.23 9.92

2016 14.92 13.56 17.13 7.51 11.96 235 410.6 255.2 0.16 4.90 11.96 10.92 10.59

2015 -4.78 -5.89 -5.16 -0.87 1.38 221 351.8 240.4 0.15 1.26 11.01 10.80 10.47

2014 10.38 9.12 10.75 4.94 13.69 193 345.8 250.0 0.14 2.41 9.83 10.23 8.97

2013 27.46 26.03 29.81 26.68 32.39 151 229.5 241.7 0.09 2.41 13.76 13.54 11.94

2012 14.51 13.23 16.44 15.83 16.00 83 84.5 205.0 0.04 3.00 16.13 16.74 15.09

2011 -5.00 -6.12 -5.73 -5.54 2.11 102 93.7 193.1 0.05 1.87 19.16 20.15 18.71

2010 12.17 10.88 13.18 11.76 15.06 95 92.8 102.3 0.09 2.95 -- -- --

2009 44.52 42.81 49.26 29.99 26.46 74 61.5 91.4 0.07 9.70 -- -- --

2008 -37.44 -38.21 -46.01 -40.71 -37.00 105 85.7 79.2 0.11 13.53 -- -- --

50


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 theGIPS® 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. <COMPLIANCE_VERIFICATION_STATEMENT>Verification does not ensure theaccuracy of any specific composite presentation. The verification 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 DelawareN.A. and NB Alternatives Advisers LLC.

Policies• Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.Composite Description• The Paduano Thematic Global All Cap Composite (the "Composite") includes all fee-paying Paduano Thematic Global All Cap Composite portfolios with a minimum of $250,000 managed on a fully discretionary basis by the Paduano Group. The Paduano

Thematic Global All Cap strategy is intended for investors who seek capital appreciation a mix of global equity securities of varying market capitalization ranges, but do not have any allocations to fixed income or convertible securities. The strategy follows a thematic investing approach that identifies long-term macroeconomic trends and seeks specific investment exposure to these trends. The Composite creation date is September 2015 and the performance inception date is December 1990. The Composite performance schedule is provided as supplemental information to the NB Equity Composite. A complete list of Neuberger Berman's composites is available upon request.

Primary Benchmark Description• The benchmark is the MSCI World (Net) 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 markets. The MSCI World Index consists of the

following 23 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States. 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. 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 January 2018, the primary benchmark was changed from the S&P 500 Index to the MSCI World (Net) Index to better reflect the holdings held in the composite.Secondary 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• Portfolios in the Composite use an all - inclusive fee schedule which includes investment advisory fees, trading expenses, custody fees, and other administrative 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. Composite Equity Only Return

(Gross of Fees) does not reflect the deduction of fees or trading expenses and excludes any cash or fixed income securities that may also be held in the Composite. Composite Equity Only Return (Gross of Fees) is presented as supplemental information and is not a required part of this presentation.

Fee Schedule• The annual investment advisory fee, payable quarterly, for each portfolio with a market value of less than $10mn is: 1.5% of the first $2.5mn of market value; 1.4% of the next $2.5mn of market value; 1.3% of the next $2.5mn of market value; 1.2% of the next

$2.49mn. This fee schedule is only applied to the Equity allocation of each portfolio with a market value less than $10mn. For each portfolio with a market value, equal to, or greater than $10mn, the annual fee payable quarterly is: 1.25% of the first $10mn of market value and 0.9% of the remaining value of market value. This fee schedule is only applied to the Equity allocation of each portfolio with a market value equal to or greater than $10mn.

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.


Thematic Global All Cap Composite - Risk Metrics, EOG

_______________________Sources: Neuberger Berman; Factset. EOG = Equity Only (gross of fees). Data as of September 30, 2018. Past performance is no guarantee of future results. Please refer to the attached GIPS® compliant composite presentations for complete performance information. Equity only (EO) performance excludes the performance of the cash and or fixed income instruments that may also be held in the portfolio. Gross of Fee performance is net of commissions and before the deduction of advisory fees. For illustrative purposes only. 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. Indexes are unmanaged and are not available for direct investment. Unless otherwise indicated, returns reflect reinvestment of dividends and distributions. Investing entails risks, including possible loss of principal.

As of September 30, 2018


3-YearStandard

DeviationBeta

Sharpe

RatioAlpha

Information

Ratio

Tracking

Error

Upside

Capture (%)

Downside

Capture (%)

Paduano Thematic Global All Cap EOG 11.24 -- 1.37 -- -- -- -- --

MSCI World Index - Net Return 9.03 1.03 1.41 2.23 0.41 6.41 120.62 108.24

S&P 500 - Total Return 9.05 0.98 1.82 -0.40 -0.16 6.99 96.51 108.00

5-YearStandard

DeviationBeta

Sharpe

RatioAlpha

Information

Ratio

Tracking

Error

Upside

Capture (%)

Downside

Capture (%)



S&P 500 - Total Return 9.47 1.02 1.42 -1.84 -0.33 5.94 95.20 112.39

Since InceptionStandard

DeviationBeta

Sharpe

RatioAlpha

Information

Ratio

Tracking

Error

Upside

Capture (%)

Downside

Capture (%)



S&P 500 - Total Return 13.93 1.06 0.56 1.48 0.25 6.96 201.41 100.44

52

Thematic Global All Cap Composite - Risk Metrics, TPG

_______________________Sources: Neuberger Berman; Factset. TPG = Total Portfolio (gross of fees). Data as of September 30, 2018. Past performance is no guarantee of future results. Please refer to the attached GIPS® compliant composite presentations for complete performance information. Gross of Fee performance is net of commissions and before the deduction of advisory fees. For illustrative purposes only. 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. Indexes are unmanaged and are not available for direct investment. Unless otherwise indicated, returns reflect reinvestment of dividends and distributions. Investing entails risks, including possible loss of principal.

As of September 30, 2018

3-YearStandard

DeviationBeta

Sharpe

RatioAlpha

Information

Ratio

Tracking

Error

Upside

Capture (%)

Downside

Capture (%)

Paduano Thematic Global All Cap TPG 10.06 -- 1.36 -- -- -- -- --


S&P 500 - Total Return 9.05 0.88 1.82 -0.42 -0.44 6.30 84.48 97.95

5-YearStandard

DeviationBeta

Sharpe

RatioAlpha

Information

Ratio

Tracking

Error

Upside

Capture (%)

Downside

Capture (%)



S&P 500 - Total Return 9.47 0.94 1.42 -1.76 -0.56 5.38 83.58 105.10

Since InceptionStandard

DeviationBeta

Sharpe

RatioAlpha

Information

Ratio

Tracking

Error

Upside

Capture (%)

Downside

Capture (%)



S&P 500 - Total Return 13.93 0.89 0.56 1.10 0.04 6.11 69.67 99.00

53

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 September 30, 2018, the percentage of total institutional-oriented equity AUM outperforming the benchmark was as follows: Since Inception: 87%; 10-year: 74%; 5-year:

72%; and 3-year: 77%; and total institutional-oriented fixed income AUM outperforming was as follows: Since Inception: 95%, 10-year: 69%; 5-year: 73%; and 3-year: 61%. If HNW AUM were included, total

equity AUM outperforming the benchmark was as follows: Since Inception: 86%; 10-year: 49%; 5-year: 50%; and 3-year: 55%; and total fixed income AUM outperforming was as follows: Since Inception:

94%; 10-year: 69%; 5-year: 73%; and 3-year: 62%. 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 9/30/2018, six equity teams/strategies accounted for approximately 54% of the total firm equity (ISA, MAG and mutual fund combined) assets reflected, and nine

strategies accounted for approximately 53% of the total firm fixed income (ISA, MAG and mutual fund combined) assets 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 – 2016, 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 2016 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 2016. 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, 2018, 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, 2018, 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.

54

Index and Definitions

Performance Attribution shows the security and sector selection that contributed to the portfolio’s performance. It quantifies the impact of individual investment decisions and monitors

performance relative to a specific benchmark over a given period of time. It answers the questions of “How much of the return was achieved by over and under weighting sectors?” and

“How much did security selection within a sector contribute to relative performance?”

The Global Industry Classification Standard is used to derive the component economic sectors of the benchmark and the composite. The Global Industry Classification Standard

(“GICS”)SM was developed by and is the exclusive property of MSCI and Standard & Poor’s. “Global Industry Classification Standard (GICS),” “GICS” and “GICS Direct” are service marks

of MSCI and Standard & Poor’s.

Allocation effect is the portion of portfolio excess return attributed to taking different group bets from the benchmark. (If either the portfolio or the benchmark has no position in a given

group, allocation effect is the only effect.) A group’s allocation effect equals the weight of the portfolio’s group minus the weight of the benchmark’s group times the total return of the

benchmark group minus the total return of the benchmark in aggregate.

Selection effect is the portion of portfolio excess return attributable to choosing different securities within groups from the benchmark. A group’s selection effect equals the weight of the

benchmark’s group multiplied by the total return of the portfolio’s group minus the total return of the benchmark’s group.

Interaction effect is the portion of the portfolio's excess return attributable to combining allocation decisions with relative performance. This effect measures the strength of the manager’s

convictions. The interaction effect is the weight differential times the return differential. A group’s interaction effect equals the weight of the portfolio’s group minus the weight of the

benchmark’s group times the total return of the portfolio’s group minus the total return of the benchmark’s group.

Total Effect is the sum of the Sector Allocation, Stock Selection, and Interaction Effects. This effect measures the opportunity cost of the manager's investment decisions in a portfolio

group relative to the overall benchmark.

Attribution figures are based on information provided by FactSet. Although we consider this source to be reliable, Neuberger Berman does not offer an opinion as to the accuracy of

these numbers. FactSet calculates attribution on a buy-and-hold basis using daily portfolios. Since daily transactions are not taken into consideration, total returns of the portfolio will be

slightly off from the actual total returns.

Standard Deviation is a statistical measure of portfolio risk. Standard Deviation is equal to the square root of the Variance. It reflects the average deviation of the observations from their

sample mean. In the case of portfolio performance, the Standard Deviation describes the average deviation of the portfolio returns from the mean portfolio return over a certain period of

time. Standard Deviation measures how wide this range of returns typically is. The wider the typical range of returns, the higher the Standard Deviation of returns, and the higher the

portfolio risk.

Sharpe Ratio A measure of the risk-adjusted return of a portfolio. The ratio represents the return gained per unit of risk taken. The Sharpe ratio can be used to compare the performance of

managers. Managers with the same excess return for a period but different levels of risk will have Sharpe ratios that reflect the difference in the level of risk. The performance of the

manager with the lower Sharpe ratio would be interpreted as exhibiting comparatively more risk for the desired return compared to the other manager. If the two managers had the same

level of risk but different levels of excess return, the manager with the higher Sharpe ratio would be preferable because the manager achieved a higher return with the same level of risk as

the other manager. The Sharpe ratio is most helpful when comparing managers with both different returns and different levels of risk. In this case, the Sharpe ratio provides a per-unit

measure of the two managers that enables a comparison. The ratio is equal to the excess return divided by the Standard Deviation of the portfolio.

Beta is a measure of the systematic risk of a security or portfolio. Beta measures the historical sensitivity of portfolio or security excess returns to movement in the excess return of the

market index. The value for Beta is expressed as a percentage of the market where the market Beta is 1.0. A security or portfolio with a Beta above the market has volatility greater than

the market. If the Beta of a security was 1.3, a 1% increase in the market return resulted, on average, in a 1.3% increase in the security’s return. A security or portfolio with Beta below the

market has lower volatility than the market and the return on the security will move less than the market return. If the Beta of the security was 0.9, a 1% decrease in the market resulted in

only a 0.9% decrease in the security’s return.


Index and Definitions

Alpha represents the historical return from an asset, based on factors unrelated to the underlying factors affecting the market. As such, Alpha is a measure of the return for asset specific

(or residual) risk. Alpha is used as measure of a manager’s contribution to performance due to security or sector selection. A positive (negative) Alpha indicates that a portfolio was

positively (negatively) rewarded for the residual risk taken for a given level of market exposure. If the market excess return is 2% and the portfolio Beta is 1.1, then the manager would have

to have an excess return greater than 2.2% for the manager to have contributed to the performance above and beyond the performance of the market.

Tracking Error is simply the standard deviation of a portfolio's relative returns (relative to some benchmark). Whereas the standard risk measure of standard deviation measures the

absolute return volatility, tracking error measures the volatility of the return differences between the portfolio and the benchmark over time. A portfolio that is actively managed in an

aggressive manner would have a large amount of tracking error versus its index, whereas a portfolio that is more constrained to look like its index (an index fund being the extreme) would

have smaller amounts of tracking error.

Downside Market Capture is a measure of the manager’s performance in down markets relative to the market itself. A value of 90 suggests the manager’s loss is only nine tenths of the

market’s loss. During the selected time period (for example: 3 years), the return for the market for each period is considered a down market period if it is less than zero. The returns for the

manager and the market for all down periods are calculated. The Downside Market Capture Ratio is calculated by dividing the return of the manager during the down periods by the return

of the market during the same periods.

Upside Market Capture is a measure of the manager’s performance in up markets relative to the market itself. A value of 110 suggests the manager performs ten percent better than the

market when the market is up. During the selected time period (for example: 3 years), the return for the market for each period is considered an up market period if it is greater than zero.

The returns for the manager and the market for all up periods are calculated. The Upside Market Capture Ratio is calculated by dividing the return of the manager during the up market

periods by the return of the market during the same periods.

Information Ratio is a ratio of portfolio returns above the returns of a benchmark -- usually an index -- to the volatility of those returns. The information ratio (IR) measures a portfolio

manager's ability to generate excess returns relative to a benchmark but also attempts to identify the consistency of the investor.

The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. As of November 27,

2013, the MSCI World Index consists of the following 23 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland,

Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States.

The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market value weighted index (stock price times number of shares

outstanding), with each stock's weight in the Index proportionate to its market value. The "500" is one of the most widely used benchmarks of U.S. equity performance. As of September 16,

2005, S&P switched to a float-adjusted format, which weighs only those shares that are available to investors, not all of a company’s outstanding shares. The value of the index now

reflects the value available in the public markets. Indices are unmanaged, and, unless otherwise stated, the performance for the index shown includes reinvestment of all dividends and

capital gains distributions and does not reflect any fees or expenses. Investors cannot invest directly in an index.

.


Representative Portfolio Disclaimer

Representative portfolio information (characteristics, holdings, weightings, etc.) is based upon the representative/model account. Representative accounts are selected based on such

factors as size, length of time under management and amount of restrictions. Any segment level performance shown (equity only or fixed income only) is presented gross of fees and

focuses exclusively on the investments in that particular segment of the portfolio being measured (equity or fixed income holdings) and excludes cash. Fund performance may vary

significantly from composite performance and representative portfolio information. Specific securities identified 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, companies, sectors or markets identified and described were or will be profitable.


DisclaimerPublications referenced herein are intended solely for your information and should not be construed as an endorsement by Neuberger Berman. Neuberger Berman is not responsible for

the content of these publications. No further distribution of this presentation is permitted without the prior written consent of Neuberger Berman.

This 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, CH-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. 261533


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