(PUB) Investing 2016

248 / 708

6
Data through May 31, 2016 FINRA members: For internal or institutional use only.
Neuberger Berman Socially Rspns A Ticker
NRAAX
Yield
1.0%
Total Assets
$2,328 mil
Mstar Category
Large Growth
Benchmark 1: Russell 1000 Growth TR USD
Benchmark 2: S&P 500 TR USD
Morningstar Analyst Rating 05-23-16
´
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)
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 05-16 History
. . . 14.22 17.37 16.70 18.34 22.75 21.13 18.92 19.42 NAV
. . . . 22.60 -3.09 10.76 37.87 10.31 -0.63 2.64 Total Return %
. . . . 5.89 -5.73 -4.50 4.39 -2.74 -6.29 0.88 +/- Bmark 1
. . . . 7.54 -5.20 -5.24 5.48 -3.38 -2.01 -0.93 +/- Bmark 2
. . . . 0.45 0.74 0.93 1.30 1.10 1.04 0.00 Income Return %
. . . . 22.15 -3.84 9.83 36.58 9.21 -1.66 2.64 Capital Return %
. . . . 4 59 91 15 49 85 11 Total Rtn % Rank Cat
. . . 0.09 0.06 0.13 0.16 0.24 0.25 0.22 0.00 Income $
. . . . 0.00 0.00 0.00 2.21 3.60 1.85 0.00 Capital Gains $
. . . 1.70 1.21 1.14 1.11 1.09 1.05 1.05 1.05 Expense Ratio %
. . . 0.11 0.18 0.42 0.61 0.67 0.68 0.57 0.78 Income Ratio %
. . . 36 41 20 28 35 36 28 . Turnover Rate %
. . . 4 31 81 80 130 147 139 133 Net Assets $mil
Performance 05-31-16
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total
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 5.84 -0.63
2016 0.53 — — — —
Trailing Total
Return%
+/- Bmark
1
+/- Bmark
2
%Rank
Cat
Growth of
$10,000
3 Mo 9.04 1.22 -0.08 33 10,904
6 Mo 1.14 0.87 -0.80 8 10,114
1 Yr -0.40 -2.01 -2.12 32 9,960
3 Yr Avg 9.65 -2.85 -1.41 68 13,184
5 Yr Avg 8.79 -3.32 -2.88 76 15,238
10 Yr Avg — — — — —
15 Yr Avg — — — — —
Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated) 4.23 89 3.05 82
5 Yr (estimated) 5.44 88 1.92 77
10 Yr (estimated) — — — —
Potential Capital Gain Exposure: 19% of assets
Rating and Risk
Time
Period
Load-Adj
Return %
Morningstar
Rtn vs Cat
Morningstar
Risk vs Cat
Morningstar
Risk-Adj Rating
1 Yr -6.13
3 Yr 7.51 -Avg -Avg QQ
5 Yr 7.51 -Avg -Avg QQ
10 Yr — — — —
Incept 12.89
Other Measures Standard Index Best Fit Index
Alpha -1.1 -0.5
Beta 0.98 0.97
R-Squared 94 95
Standard Deviation 11.49
Mean 9.65
Sharpe Ratio 0.85
Portfolio Analysis 03-31-16
Total Stocks: 36
Share change since 02-29-16 Sector YTD Ret % % Assets
YProgressive Corp Finan Svcs 7.51 4.95
Texas Instruments Inc Technology 11.95 4.89
YEversource Energy Utilities 9.91 4.51
Newell Brands Inc Cnsmr Def 9.05 4.48
Danaher Corp Industrl 6.07 4.37
Intuit Inc Technology 11.15 4.04
W.W. Grainger Inc Industrl 13.90 3.91
TBecton Dickinson & Co Hlth Care 8.45 3.86
Unilever NV ADR Cnsmr Def — 3.86
Schlumberger Ltd Energy 10.82 3.78
TState Str Instl Invt Tr T — — 3.77
Level 3 Communications In Comm Svcs -0.75 3.27
US Bancorp Finan Svcs 0.95 3.18
Abbott Laboratories Hlth Care -5.97 3.16
TeBay Inc Cnsmr Cyc -10.99 2.86
Alliance Data Systems Cor Industrl -19.66 2.77
Noble Energy Inc Energy 9.17 2.68
American Express Co Finan Svcs -4.62 2.63
TIntercontinental Exchange Finan Svcs 6.13 2.62
TMedtronic PLC Hlth Care 5.12 2.45
Current Investment Style
Large Mid Small
Value Blend Growth Market Cap %
Giant 20.4
Large 52.4
Mid 23.2
Small 4.1
Micro 0.0
Avg $mil:
30,851
Value Measures Rel Category
Price/Earnings 19.21 0.87
Price/Book 2.77 0.75
Price/Sales 2.07 0.91
Price/Cash Flow 11.82 0.98
Dividend Yield % 1.87 1.37
Growth Measures % Rel Category
Long-Term Erngs 9.41 0.78
Book Value 5.16 0.67
Sales 2.12 0.28
Cash Flow -2.85 -0.23
Historical Erngs 6.91 0.55
Profitability %
Return on Equity 19.89
Return on Assets 6.81
Net Margin 11.20
Sector
Weightings
% of
Stocks
Rel
Bmark 1
h Cyclical 27.13 0.92
r BasicMat 0.00 0.00
t CnsmrCyc 9.43 0.50
y FinanSvcs 17.70 3.33
u Real Est 0.00 0.00
j Sensitive 47.75 1.13
i CommSrvs 3.39 0.65
o Energy 9.71 16.46
p Industrl 21.15 1.65
a Technlgy 13.50 0.57
k Defensive 25.13 0.89
s CnsmrDef 8.67 0.77
d Hlthcare 11.77 0.70
f Utilities 4.69 78.17
Composition - Net
Cash 3.8
Stocks 96.2
Bonds 0.0
Other 0.0
Foreign 10.1
(% of Stock)
Morningstar's Take by David Kathman, CFA 05-23-16
Arthur Moretti, lead manager of Neuberger Berman
Socially Responsive since 2001 and Neuberger Berman
Guardian NGUAX since 2002, retired in February 2016.
Since then, Moretti's three longtime comanagers (Ingrid
Dyott, Sajjad Ladiwala, and Mamundi Subhas) have
continued to run this fund in the same style as before.
That continuity is comforting, and the three have plenty
of experience, but Moretti’s retirement was enough of a
loss that we downgraded the fund’s Morningstar Analyst
Rating to Bronze from Silver when the change was
announced in September 2015. We're maintaining that
rating now, as the transition has gone smoothly and the
managers have not made any dramatic changes.
Themanagersmaintaina fairlyconcentratedportfolio
of 30-40 stocks, focusing on industry leaders with good
growth potential but reasonable price tags, preferably
those with estimated upside potential of 15%-25% during
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 was long very similar to that of Neuberger
Berman Guardian, which lacked explicit ESG screening.
This fund had 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 during his tenure. Its returns don’t look quite as
good since Dyott and Ladiwala were named comanagers
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 category. The
fund isstill ingoodhandsunderanexperiencedteamafter
Moretti's departure, 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: —
New York, NY 10158-0006 Min Auto Inv Plan: $100 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 Investment Advisers LLC Expense Projections: 3Yr:$890 5Yr:$1121 10Yr:$1784
Subadvisor: None Income Distribution: Annually
©2016Morningstar, 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, email ß® Mutual Funds A