(PUB) Investing 2015

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23 Morningstar FundInvestor October 2015
Data through September 30, 2015 FINRA members: For internal or institutional use only.
Neuberger Berman Socially Rspns A Ticker
NRAAX
Yield
1.1%
Total Assets
$2,189 mil
Mstar Category
Large Growth
Benchmark 1: Russell 1000 Growth TR USD
Benchmark 2: S&P 500 TR USD
Morningstar Analyst Rating 09-21-15
´
Morningstar Pillars
Process ∞ Positive
Performance ∞ Positive
People ∞ Positive
Parent ∞ Positive
Price ∞ Positive
Morningstar Analyst Rating
Morningstar evaluates mutual funds based on five key pillars, which its
analysts believe lead to funds that are more likely to outperform over the
long term on a risk-adjusted basis.
Analyst Rating Spectrum
Œ „ ´ ‰ Á
Pillar Spectrum
∞ Positive § Negative ¶ Neutral
10.0
15.0
20.0
25.0
Historical Profile
Return
Risk
Rating
Below Avg
Below Avg
QQ
Below Avg
7 7 7 7 7 7 7 7 Investment Style
Equity
Growth of $10,000
Investment Values of
Fund
Investment Values of
Benchmark 1
& ( ) & * ) Performance Quartile
(within Category)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 09-15 History
. . . . 14.22 17.37 16.70 18.34 22.75 21.13 19.84 NAV
. . . . . 22.60 -3.09 10.76 37.87 10.31 -6.11 Total Return %
. . . . . 5.89 -5.73 -4.50 4.39 -2.74 -4.57 +/- Bmark 1
. . . . . 7.54 -5.20 -5.24 5.48 -3.38 -0.82 +/- Bmark 2
. . . . . 0.45 0.74 0.93 1.30 1.10 0.00 Income Return %
. . . . . 22.15 -3.84 9.83 36.58 9.21 -6.11 Capital Return %
. . . . . 4 59 91 15 49 86 Total Rtn % Rank Cat
. . . . 0.09 0.06 0.13 0.16 0.24 0.25 0.00 Income $
. . . . . 0.00 0.00 0.00 2.21 3.60 0.00 Capital Gains $
. . . . 1.70 1.21 1.14 1.11 1.09 1.05 1.05 Expense Ratio %
. . . . 0.11 0.18 0.42 0.61 0.67 0.68 0.78 Income Ratio %
. . . . 36 41 20 28 35 36 . Turnover Rate %
. . . . 4 31 81 80 130 147 138 Net Assets $mil
Performance 09-30-15
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total
2011 6.91 -0.65 -17.51 10.60 -3.09
2012 10.48 -6.40 5.27 1.74 10.76
2013 15.05 1.90 7.49 9.41 37.87
2014 0.57 4.20 0.00 5.27 10.31
2015 1.56 -1.07 -6.55 — —
Trailing Total
Return%
+/- Bmark
1
+/- Bmark
2
%Rank
Cat
Growth of
$10,000
3 Mo -6.55 -1.26 -0.11 49 9,345
6 Mo -7.55 -2.37 -1.37 76 9,245
1 Yr -1.16 -4.33 -0.55 76 9,884
3 Yr Avg 13.26 -0.35 0.86 36 14,529
5 Yr Avg 11.57 -2.90 -1.77 74 17,285
10 Yr Avg — — — — —
15 Yr Avg — — — — —
Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated) 8.42 77 2.36 77
5 Yr (estimated) 8.63 89 1.47 76
10 Yr (estimated) — — — —
Potential Capital Gain Exposure: 12% of assets
Rating and Risk
Time
Period
Load-Adj
Return %
Morningstar
Rtn vs Cat
Morningstar
Risk vs Cat
Morningstar
Risk-Adj Rating
1 Yr -6.84
3 Yr 11.05 -Avg -Avg QQ
5 Yr 10.25 -Avg -Avg QQ
10 Yr — — — —
Incept 12.86
Other Measures Standard Index Best Fit Index
Alpha 0.9 0.9
Beta 0.99 0.98
R-Squared 89 91
Standard Deviation 10.27
Mean 13.26
Sharpe Ratio 1.26
Portfolio Analysis 07-31-15
Total Stocks: 37
Share change since 06-30-15 Sector YTD Ret % % Assets
TTexas Instruments Inc Technology -5.47 5.03
YNewell Rubbermaid Inc Cnsmr Def 5.75 4.93
TAmerican Express Co Finan Svcs -19.45 4.91
Progressive Corp Finan Svcs 16.07 4.89
YDanaher Corp Industrl -0.11 3.99
Eversource Energy Utilities -3.08 3.88
Unilever NV ADR Cnsmr Def — 3.66
Intuit Inc Technology -2.92 3.63
U.S. Bancorp Finan Svcs -7.09 3.63
Becton Dickinson & Co Hlth Care -3.38 3.56
TW W Grainger Inc Industrl -14.30 3.52
Schlumberger Ltd Energy -17.49 3.40
TJX Companies Inc Cnsmr Cyc 5.01 3.09
TKeurig Green Mountain Inc Cnsmr Def -59.75 3.01
Alliance Data Systems Cor Industrl -9.46 2.90
Abbott Laboratories Hlth Care -9.06 2.66
Intercontinental Exchange Finan Svcs 8.14 2.66
Robert Half International Industrl -11.34 2.66
TBorgWarner Inc Cnsmr Cyc -23.60 2.59
YState Str Instl Invt Tr T — — 2.58
Current Investment Style
Large Mid Small
Value Blend Growth Market Cap %
Giant 16.7
Large 52.1
Mid 25.4
Small 5.8
Micro 0.0
Avg $mil:
26,983
Value Measures Rel Category
Price/Earnings 21.31 0.94
Price/Book 3.19 0.83
Price/Sales 2.08 0.89
Price/Cash Flow 11.25 0.82
Dividend Yield % 1.69 1.38
Growth Measures % Rel Category
Long-Term Erngs 10.41 0.80
Book Value 9.31 0.99
Sales 4.96 0.58
Cash Flow 7.85 0.68
Historical Erngs 8.90 0.70
Profitability %
Return on Equity 21.72
Return on Assets 8.10
Net Margin 12.26
Sector
Weightings
% of
Stocks
Rel
Bmark 1
h Cyclical 31.22 1.06
r BasicMat 0.00 0.00
t CnsmrCyc 10.52 0.55
y FinanSvcs 20.70 4.00
u Real Est 0.00 0.00
j Sensitive 43.39 1.03
i CommSrvs 1.50 0.29
o Energy 8.18 12.03
p Industrl 20.11 1.58
a Technlgy 13.60 0.57
k Defensive 25.38 0.90
s CnsmrDef 11.91 1.11
d Hlthcare 9.49 0.54
f Utilities 3.98 79.60
Composition - Net
Cash 2.6
Stocks 97.4
Bonds 0.0
Other 0.0
Foreign 10.2
(% of Stock)
Morningstar's Take by David Kathman, CFA 09-21-15
On Sept. 10, 2015, Neuberger Berman announced that
Arthur Moretti, lead manager of Neuberger Berman
Socially Responsive since 2001 and Neuberger Berman
Guardian NGUAX since 2002, will retire in February 2016.
Moretti will turn over Neuberger Berman Guardian to firm
veteran Charles Kantor in October 2015, but he will
continue to manage this fund until his retirement, after
which his three comanagers (Ingrid Dyott, Sajjad
Ladiwala, and Mamundi Subhas) will continue to run it in
thesamestyle.Thatcontinuity iscomfortingandthethree
have plenty of experience, but Moretti’s retirement is
enough of a loss that we’re downgrading the fund’s
Morningstar Analyst Rating to Bronze from Silver.
Themanagersmaintaina fairlyconcentratedportfolio
of 30 to 40 stocks, focusing on industry leaders with good
growth potential but reasonable price tags, preferably
those with estimated upside potential of 15%-25% over
the next three to five years. They tend to avoid stocks
that earn significant revenue from alcohol, tobacco,
weapons, nuclear power, or gambling, and they favor
firms with good community, environmental, and
workplace records. The managers consider such
environmental, social, and governance, or ESG, factors to
be good investment criteria in any case, so this fund’s
portfolio has always been very similar to that of
Neuberger Berman Guardian, which lacks explicit ESG
screening.
This fund has an excellent record under Moretti,
ranking in or near the top decile of the large-growth
Morningstar Category as well as its prior large-blend peer
group over his tenure. Its returns don’t look quite as good
sinceDyottandLadiwalawerenamedcomanagers in late
2003, because they don't include the great relative
returns of 2001, 2002, and 2003; however, they’re still
solid, especially relative to the large-blend Morningstar
Category. The fund will continue to be in good hands
under an experienced team after Moretti is gone, and
there's no need for shareholders to be too concerned. But
the loss of his experience and track record makes us
somewhat less confident in the fund's prospects,
resulting in the Bronze rating.
Address: Neuberger Berman Equity Funds Minimum Purchase: $1000 Add: $100 IRA: $1000
New York, NY 10158-0006 Min Auto Inv Plan: $1000 Add: $100
877-628-2583 Sales Fees: 5.75%L
Web Address: Management Fee: 0.55% mx./0.40% mn., 0.26%A
Inception: 05-27-09 Actual Fees: Mgt:0.73% Dist:0.25%
Advisor: Neuberger Berman Management LLC Expense Projections: 3Yr:$893 5Yr:$1126 10Yr:$1795
Subadvisor: Neuberger Berman LLC Income Distribution: Annually
©2015Morningstar, Inc.All rights reserved. The information herein is not represented orwarranted to be accurate, complete or timely. Past
performance is no guarantee of future results.Access updated reports at . To order reprints, call 312-696-6100. ß® Mutual Funds A