Neuberger Berman Alternative Funds NCSR Certified annual shareholder report (management investment company)

As filed with the Securities and Exchange Commission on January 6, 2014

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF

REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811- 21715

NEUBERGER BERMAN ALTERNATIVE FUNDS

(Exact Name of the Registrant as Specified in Charter)

c/o Neuberger Berman Management LLC

605 Third Avenue, 2nd Floor

New York, New York 10158-0180

(Address of Principal Executive Offices – Zip Code)

Registrant’s telephone number, including area code: (212) 476-8800

Robert Conti

Chief Executive Officer and President

Neuberger Berman Alternative Funds

c/o Neuberger Berman Management LLC

605 Third Avenue, 2nd Floor

New York, New York 10158-0180

Arthur C. Delibert, Esq.

K&L Gates LLP

1601 K Street, N.W.

Washington, D.C. 20006-1600

(Names and Addresses of agents for service)

Date of fiscal year end: October 31, 2013

Date of reporting period: October 31, 2013

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Report to Shareholders.

Neuberger Berman
Alternative and Multi-Asset Class Funds

Institutional Class Shares
Class A Shares
Class C Shares

Dynamic Real Return Fund

Flexible Select Fund

Global Allocation Fund

Long Short Fund

Annual Report

October 31, 2013

Contents

THE FUNDS
President's Letter					1
PORTFOLIO COMMENTARY
Dynamic Real Return Fund					2
Flexible Select Fund					5
Global Allocation Fund					9
Long Short Fund					13
FUND EXPENSE INFORMATION					19
SCHEDULE OF INVESTMENTS/TOP TEN EQUITY HOLDINGS
Dynamic Real Return Fund					21
Flexible Select Fund					24
Global Allocation Fund					29
Positions by Industry					32
Long Short Fund					34
FINANCIAL STATEMENTS					45
FINANCIAL HIGHLIGHTS (ALL CLASSES)/ PER SHARE DATA
Dynamic Real Return Fund					75
Flexible Select Fund					75
Global Allocation Fund					77
Long Short Fund					77
Reports of Independent Registered Public Accounting Firms					80
Directory					82
Trustees and Officers					83
Proxy Voting Policies and Procedures					91
Quarterly Portfolio Schedule					91
Notice to Shareholders					92
Board Consideration of the Management and Sub-Advisory Agreements					93

The "Neuberger Berman" name and logo are registered service marks of Neuberger Berman Group LLC. "Neuberger Berman Management LLC" and the individual Fund names in this piece are either service marks or registered service marks of Neuberger Berman Management LLC. ^©2013 Neuberger Berman Management LLC. All rights reserved.

President's Letter

Dear Fellow Shareholder,

I am pleased to present this annual shareholder report for the following Neuberger Berman Alternative and Multi-Asset Class Funds: Neuberger Berman Global Allocation Fund, Neuberger Berman Long Short Fund and Neuberger Berman Dynamic Real Return Fund. This report also includes the new Neuberger Berman Flexible Select Fund, which was launched on May 31, 2013. The Fund seeks long-term growth of capital, while working to minimize downside volatility. The Fund is a long-only, actively managed diversified mutual fund that seeks to replicate the largest positions held by the multiple higher tracking error, absolute-return oriented equity teams at the firm. The Fund tracks the positions of approximately 17 distinct portfolio management teams at Neuberger Berman that currently manage assets primarily for high net worth clients. The Fund also has the ability to invest in cash and bonds as necessary, based on the underlying asset allocations of the various portfolio management teams.

Shifting gears to the global financial markets, they were volatile at times and generated mixed results during the reporting period. Volatility was triggered by a number of factors, including incoming global economic data, expectations for future central bank monetary policy, geopolitical issues, uncertainties regarding the U.S. fiscal cliff and sequestration, and the partial government shutdown. Despite elevated volatility at times, risk assets generated strong results during the reporting period. U.S. equities were highly resilient and generated strong results over the 12 months ended October 31, 2013. In contrast, fixed income securities were generally weak amid a rising interest rate environment.

Looking ahead, while October's government shutdown is behind us, another round of budget and debt ceiling negotiations is slated for early 2014. This could result in another bout of market volatility. Also impacting investor sentiment could be uncertainties related to the Federal Reserve's asset purchase tapering, geopolitical events and global economic data. Still, as we've seen in the past, we believe market volatility can lead to mispriced securities and compelling opportunities for long-term investors.

Thank you for your continued support and trust. We look forward to continue serving your investment needs in the years to come.

Sincerely,

ROBERT CONTI
PRESIDENT AND CEO
NEUBERGER BERMAN MUTUAL FUNDS

Dynamic Real Return Fund Commentary (Unaudited)

Neuberger Berman Dynamic Real Return Fund Institutional Class generated a 3.80% total return from its inception on December 19, 2012 through October 31, 2013. During this same time period, the Barclays 1-10 Year U.S. TIPS Index provided a -3.79% return while the U.S. Consumer Price Index was 1.7%.¹ (Performance for all share classes is provided in the table immediately following this letter.)

The global financial markets were volatile at times and generated mixed results during the reporting period. Volatility was triggered by a number of factors, including incoming global economic data, expectations for future central bank monetary policy, geopolitical issues, uncertainties regarding the U.S. fiscal cliff and sequestration, as well as the partial government shutdown. Developed global equities were highly resilient and generated strong results; master limited partnerships (MLPs) also rallied sharply. In contrast, fixed income securities were weak amid a rising interest rate environment, in particular global Treasury Inflation-Protected Securities (TIPS) as expectations for future inflation were relatively muted.

The Fund benefited from its diversified investment approach, which helped it to outperform its benchmark. Among the sectors in which the Fund invests, its allocations to equities within the Energy and Materials sectors and to MLPs added the most value. Other contributors to absolute performance included the Fund's exposures to real estate investment trusts (REITs), high yield securities and emerging market securities. On the downside, the Fund's allocations to global TIPS and commodities were the largest detractors from results. In aggregate, the Fund's dynamic overlay (flexible use of strategies to add or remove certain exposures without disrupting the portfolio underlying structure) did not meaningfully impact its performance during the reporting period.

Looking ahead, higher inflation does not appear to us to be a near-term concern. That being said, economic data in the U.S. has generally improved in recent months, although the timing and magnitude of the Federal Reserve's asset purchase tapering remains uncertain. Outside the U.S., Europe's economy appears to us to have bottomed and aggressive monetary policy in Japan has had positive early results in terms of stimulating its economy and potentially ending its deflationary cycle. Elsewhere, recent manufacturing data in China has lessened concerns regarding a hard landing for its economy. Against this backdrop, we feel that current inflation expectations are not reflective of the global economic environment. While breakeven inflation has fallen in recent months, the overall trend has been upward over the last two years as a whole.

We believe that the Fund is well positioned, as we have the flexibility to allocate its portfolio in a diversified array of inflation-sensitive asset classes. In addition, with its dynamic overlay, we believe the Fund has the potential to provide attractive real returns in a variety of inflationary environments.

Sincerely,

THANOS BARDAS, ANDREW JOHNSON AND THOMAS J. MARTHALER
PORTFOLIO CO-MANAGERS

Information about the principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.

The portfolio composition, industries and holdings of the Fund are subject to change.

The opinions expressed are those of the Fund's portfolio managers. The opinions are as of the date of this report and are subject to change without notice.

¹ Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care. The CPI is one of the most frequently used statistics for identifying periods of inflation or deflation. The CPI is available monthly, so the value shown is from December 31, 2012 through October 31, 2013, not seasonally adjusted.

Dynamic Real Return Fund (Unaudited)

TICKER SYMBOLS

Institutional Class				NDRIX
Class A				NDRAX
Class C				NDRCX

PORTFOLIO BY TYPE OF

INVESTMENT STRATEGY

(as a % of Total Investment Strategies)

Commodities	9.2	%
Emerging Markets	8.9
Global Treasury Inflation Protected Securities	24.4
High Yield Securities	9.6
Loans	5.7
Master Limited Partnerships	10.2
Real Estate Investment Trusts	10.5
S&P Energy	10.8
S&P Materials	10.7
Total	100.0	%

PORTFOLIO BY TYPE OF SECURITY

(as a % of Total Net Assets)

Common Stocks	40.4	%
Government Securities	13.5
U.S. Treasury Securities	10.6
Mutual Funds	33.0
Exchange Traded Funds	1.5
Short-Term Investments	0.8
Cash, receivables and other assets, less liabilities	0.2
Total	100.0	%

PERFORMANCE HIGHLIGHTS

	Inception Date	Cumulative Total Return Ended 10/31/2013 Life of Fund
At NAV
Institutional Class	12/19/2012		3.80	%
Class A	12/19/2012		3.50	%
Class C	12/19/2012		2.80	%
With Sales Charge
Class A			-2.45	%
Class C			1.80	%
Index
Barclays U.S. 1-10 Year Treasury TIPS Index^1,2			-3.79	%

The performance data quoted represent past performance and do not indicate future results. Current performance may be lower or higher than the performance data quoted. For more current performance data, please visit www.nb.com/performance.

The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.

The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.

Returns would have been lower if Neuberger Berman Management LLC ("Management") had not reimbursed certain expenses and/or waived a portion of the investment management fees during certain of the periods shown. Repayment by a class (of expenses previously reimbursed and/or fees previously waived by Management) will decrease the class's returns. Please see Note B in the Notes to Financial Statements for specific information regarding expense reimbursement and/or fee waiver arrangements.

As stated in the Fund's most recent prospectus, the estimated total annual operating expense ratios for fiscal year 2013 were 1.69%, 2.05% and 2.80% for Institutional Class, Class A and Class C shares, respectively (before expense reimbursements and/or fee waivers, if any). The expense ratios were 1.01%, 1.37% and 2.12% for Institutional Class, Class A and Class C shares, respectively, after expense reimbursements and/or fee waivers.

Returns shown with a sales charge reflect the deduction of the current maximum initial sales charge of 5.75% for Class A shares and the applicable contingent deferred sales charges (CDSC) for Class C shares. The maximum CDSC for Class C shares is 1%, which is reduced to 0% after 1 year. The performance of the Fund's share classes will differ primarily due to different sales charge structures and class expenses. Please see the prospectus for more information about sales charge structures, if any, and class expenses for your share class.

Dynamic Real Return Fund (Unaudited)

COMPARISON OF A $1,000,000 INVESTMENT

(000s omitted)

This graph shows the change in value of a hypothetical $1,000,000 investment in the Fund over the past 10 fiscal years, or since the Fund's inception if it has not operated for 10 years. The graph is based on the Institutional Class shares only; the performance of the Fund's share classes will differ primarily due to different sales charge structures and class expenses (see Performance Highlights chart on previous page). The result is compared with benchmarks, which include a broad-based market index and may include a more narrowly based index. Market indices have not been reduced to reflect any of the fees and costs of investing. The results shown in the graph reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results.

Flexible Select Fund Commentary (Unaudited)

We are pleased to provide the first annual report for Neuberger Berman Flexible Select Fund, which was launched on May 31, 2013. The Fund seeks to provide long-term capital appreciation with lower volatility than the broader equity market, with a focus on mitigating downside risk. To pursue this objective, the Fund seeks to replicate the core securities selected by a diversified group of experienced Neuberger Berman portfolio managers, who have the flexibility to use an all-cap, all style equity approach in addition to the incidental use of cash and bonds in an attempt to decrease risk. Equities typically comprise the largest portion of the portfolio. As of October 31, 2013, the allocation was 86.2% equity, 7.0% fixed income and 6.8% cash and cash equivalents.

Since inception through October 31, 2013, Neuberger Berman Flexible Select Fund Institutional Class generated an 8.00% total return, compared to the 7.96% return of its benchmark, the Russell 3000® Index. The Fund provided its return with 15% lower volatility than the overall equity market, as defined by the Russell 3000 Index. (Performance for all share classes is provided in the table immediately following this letter.)

A broad range of macroeconomic indicators over the last five months pointed to a steady recovery in the U.S. These included a strengthening housing market, increasing consumer confidence and spending, generally declining unemployment, and a benign inflationary backdrop. Job growth strengthened over the summer, weakened in September, but picked up again later in the fall. This pattern helped buoy the equity markets. Geopolitical factors, including the situation in Syria and the government gridlock and eventual shutdown in October, added volatility to the markets.

In the equity portion of the portfolio, industry sector allocation had a positive contribution to relative performance during the reporting period. An underweight position in Financials had the largest positive impact, in addition to overweights in Energy and Industrials and an underweight in Information Technology (IT). Security selection also contributed positively to relative performance. The largest positive security selection contribution came from the Energy sector, where being overweighted in the smaller, U.S.-focused exploration and production companies and energy services, as well as being underweight the major integrated players, added significant value. The largest negative security selection contribution came from IT.

From a sector perspective, the portfolio's largest overweight was Energy. Many of our portfolio managers believe that despite new discoveries in the U.S., energy is a resource with increasing demand and depleting reserves. In addition, they generally believe that "easy" energy has already been discovered, and what is being discovered today is harder, i.e. more expensive, to extract. They favor exploration and production oil and natural gas companies that they believe can take advantage of unconventional drilling technology, and are optimistic about the U.S.'s prospects for energy independence. The portfolio's second-largest overweight is Health Care. The portfolio is also overweighted in Industrials, Materials and Utilities.

The portfolio's largest underweight is Financials, a sector the portfolio managers see as "under-earning and over-regulated." Within the sector, the portfolio managers generally are underweighted in banks and diversified financial companies. The portfolio is also underweighted in IT, while having high conviction in select names (four of the top 10 holdings are IT names). Other underweight sectors include Consumer Discretionary, Consumer Staples and Telecommunication Services.

We are constructive on equities over the next 12 months, with a positive outlook for further gains. Economic data has been solid, and we anticipate that the U.S. recovery will continue. We believe we will see improved U.S. earnings growth, continued multiple expansion and strong margins. We also think the Federal Reserve will continue to be supportive. Stock return correlations, which rose meaningfully in the wake of the global financial crisis, have started to decline, a trend that we believe may continue in the next 12 months. This could provide a tailwind to equity managers who focus on

fundamental security selection, as performance dispersion among stocks increases and company fundamentals take on greater importance in driving returns.

Sincerely,

JOSEPH V. AMATO
PORTFOLIO MANAGER

Information about the principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.

The portfolio composition, industries and holdings of the Fund are subject to change.

The opinions expressed are those of the Fund's portfolio manager. The opinions are as of the date of this report and are subject to change without notice.

Flexible Select Fund (Unaudited)

TICKER SYMBOLS

Institutional Class				NFLIX
Class A				NFLAX
Class C				NFLCX

SECTOR ALLOCATION

(as a % of Total Investments)

Consumer Discretionary	9.8	%
Consumer Staples	7.4
Energy	11.9
Financials	11.4
Health Care	12.9
Industrials	11.8
Information Technology	12.2
Materials	4.5
Telecommunication Services	0.7
Utilities	3.8
Other	6.9
Short-Term Investments	6.7
Total	100.0	%

PERFORMANCE HIGHLIGHTS

	Inception Date	Cumulative Total Return Ended 10/31/2013 Life of Fund
At NAV
Institutional Class	05/31/2013		8.00	%
Class A	05/31/2013		7.80	%
Class C	05/31/2013		7.50	%
With Sales Charge
Class A			1.60	%
Class C			6.50	%
Index
Russell 3000^® Index^1,2			7.96	%

The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.

As stated in the Fund's most recent prospectus, the estimated total annual operating expense ratios for fiscal year 2013 were 1.33%, 1.69% and 2.44% for Institutional Class, Class A and Class C shares, respectively (before expense reimbursements and/or fee waivers, if any). The expense ratios were 0.88%, 1.24% and 1.99% for Institutional Class, Class A and Class C shares, respectively, after expense reimbursements and/or fee waivers.

Flexible Select Fund (Unaudited)

COMPARISON OF A $1,000,000 INVESTMENT

(000s omitted)

Global Allocation Fund Commentary (Unaudited)

Neuberger Berman Global Allocation Fund Institutional Class generated a 14.56% total return for the 12 months ended October 31, 2013 and outperformed its custom benchmark, a 50/50 combination of the MSCI World Index and the JP Morgan Global Government Bond Index, which provided a 10.61% return for the period. (Performance for all share classes is provided in the table immediately following this letter.)

The global financial markets were volatile at times and generated mixed results during the reporting period. Volatility was triggered by a number of factors, including global economic data, expectations for future central bank monetary policy, geopolitical issues, uncertainties regarding the U.S. fiscal cliff and sequestration, as well as the partial government shutdown. Developed global equities were highly resilient and generated strong results during the period. Relative to equity markets, global fixed income securities generally exhibited weaker performance, partly in response to the prospect of a rising interest rate environment. Elsewhere, the currency markets fluctuated at times, partially driven by expectations for shifting central bank monetary policy.

One of the main drivers of the Fund's outperformance was security selection. From a sector perspective, almost all sectors contributed positively, particularly securities within the Financial and Industrial sectors. Positioning in Health Care companies marginally detracted from performance over the 12-month period. On a regional basis, security selection added value almost across the board, particularly within the U.S. and Europe ex-UK. Security selection within Canada was the only area to detract value.

Our asset allocation strategy generated mixed results during the period. Tactical positioning within equity added value to the Fund's performance, whereas fixed income and currency positioning detracted from results. The Fund's macro positioning in fixed income securities was implemented primarily through derivatives, such as futures contracts on government bonds and derivatives on a broad-based fixed income index. The Fund's positioning in equity markets and its currency exposure were obtained through a combination of exchange traded funds (ETFs) and derivatives such as futures and forwards.

In equities, our positioning in Japan was the largest contributor, as its market rallied sharply given highly accommodative monetary and fiscal policy. Tactically adjusting the Fund's UK equity exposure was also beneficial. In fixed income markets, our overall positioning was a positive for results. Our overweight positioning in UK gilts and U.S. Treasuries were detractors, while the Fund's tactical positioning in Australian bonds generated a gain. In terms of the Fund's currency exposure, positioning in the Australian dollar and, to a lesser extent the Japanese yen, detracted from performance. These negatives were partially offset by the positive impact of our positioning in the UK pound.

Much of the Fund's investment exposure is accomplished through the use of derivatives, including total return swaps, futures and forwards, which may not require the Fund to deposit the full notional amount of its investments with counterparties. The Fund's resulting cash balances are invested in money market mutual funds.

Despite the political uncertainty in the U.S., global markets have shown resilience, evidenced by the highs we have witnessed from some assets in the Fund's universe and slightly stronger corporate and consumer confidence. Against this backdrop, as we move into the last portion of the year, we are cautiously optimistic about the Fund's equity positioning. In fixed income, the Fund's positioning is fairly tactical, whereas our view on the U.S. dollar is slightly positive. Overall, while we have found that macro views have been challenged, the opportunity set for individual stock picking has

increased, in our view. With a dynamic risk taking capability, the Fund has the ability to be flexible and go anywhere, allowing it to potentially take advantage of these opportunities.

Sincerely,

WAI LEE, ALEXANDRE DA SILVA, PING ZHOU, JOSEPH V. AMATO AND BRADLEY TANK
PORTFOLIO CO-MANAGERS

Information about the principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.

The portfolio composition, industries and holdings of the Fund are subject to change.

The opinions expressed are those of the Fund's portfolio managers. The opinions are as of the date of this report and are subject to change without notice.

Global Allocation Fund (Unaudited)

TICKER SYMBOLS

Institutional Class				NGLIX
Class A				NGLAX
Class C				NGLCX

PERFORMANCE HIGHLIGHTS³

	Average Annual Total Return Ended 10/31/2013
	Inception Date	1 Year			Life of Fund
At NAV
Institutional Class	12/29/2010		14.56	%		9.46	%
Class A	12/29/2010		14.15	%		9.09	%
Class C	12/29/2010		13.30	%		8.26	%
With Sales Charge
Class A			7.54	%		6.84	%
Class C			12.30	%		8.26	%
Index
50% MSCI World Index and 50% J.P. Morgan Global Government Bond Index^1,2			10.61	%		7.21	%
MSCI World Index^1,2			26.48	%		11.43	%

The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.

As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2012 were 4.87%, 5.27% and 6.33% for Institutional Class, Class A and Class C shares, respectively (before expense reimbursements and/or fee waivers, if any). The expense ratios were 1.49%, 1.88% and 2.58% for Institutional Class, Class A and Class C shares, respectively, after expense reimbursements and/or fee waivers.

Global Allocation Fund (Unaudited)

COMPARISON OF A $1,000,000 INVESTMENT

(000s omitted)

Long Short Fund Commentary (Unaudited)

Neuberger Berman Long Short Fund Institutional Class generated a 13.47% total return for the 12 months ended October 31, 2013, but underperformed its primary benchmark, the S&P 500 Index, which provided a 27.18% return for the period. (Performance for all share classes is provided in the table immediately following this letter.) However, the Fund outperformed the HFRX Equity Hedge Index, which returned 9.74% for the period. (The index tracks the performance of strategies that maintain positions both long and short in primarily equity and equity derivative securities.)

The financial markets were volatile during the reporting period. However, the U.S. equity market was highly resilient, with the S&P 500 Index rising sharply and reaching all-time highs on several occasions. In contrast, the overall fixed income market generated weak results. Interest rates moved higher given expectations that the U.S. Federal Reserve (the Fed) would start tapering its asset purchases sooner than previously expected. Rates declined somewhat over the last two months of the period as the Fed chose to delay the taper, but it was not enough to offset earlier losses. One notable bright spot within the fixed income market were high yield bonds, as they benefited from overall robust demand and low defaults.

We maintained a positive outlook on risk assets such as equities and high yield bonds, which was reflected in the long side of the portfolio. Within our equity holdings, which represented the bulk of our long exposure, the Fund remained most exposed to more cyclical industries, including the Consumer Discretionary sector. Elsewhere, we increased our allocation to the Information Technology (IT) sector.

We categorize our investments on the long side into three groups: Capital Growth, Total Return and Opportunistic. Capital Growth investments demonstrate what we believe are attractive industry fundamentals, strong competitive positions, growing revenues and attractive re-investment opportunities. Total Return investments demonstrate what we believe are sustainable and/or growing streams of income that are underpinned by asset value and which can result in growing cash returns to shareholders. The Total Return category includes our fixed income holdings, which consisted mainly of high yield securities during the reporting period. Opportunistic investments are those where we find what we believe are identifiable catalysts. This may include companies with management changes, company reorganizations, merger and acquisition activity and other market dislocations that have the potential to unlock intrinsic value.¹

In favorable macro environments, the exposure to Capital Growth and Opportunistic fundamental longs historically tended to increase relative to the Total Return category. During the reporting period, the Capital Growth category represented the largest exposure in our long portfolio and was the largest contributor to the Fund's performance.

The short exposure within the portfolio is broken into "Fundamental" shorts and "Market" shorts. During the reporting period, our Market shorts consisted primarily of exchange traded funds and short futures positions on the S&P 500 Index. Given increased market volatility during the second half of the period, we increased our weighting to Fundamental shorts versus Market shorts. Due to the market's strong rally, our Market shorts detracted the most from the Fund's performance. The majority of our derivatives exposure fell under our aforementioned Market short categorization.

Looking ahead, we continue to have a positive outlook on risk assets such as equities and high yield bonds. This is based on two fundamental beliefs. First, the U.S. economy, although growing at a modest pace, is structurally more resilient than generally believed, in our opinion. Second, equities and high yield bonds are more attractive than traditional "safe" asset classes such as Treasury and investment grade bonds, in our view. Our positive view on risk assets is not without potential risks. We have been consistent in our belief that the massive global liquidity measures by the Fed, European Central Bank and Japan's central bank, while positive for risk assets globally, may have severe unintended consequences over the long term. We believe ongoing fiscal policy uncertainties are also likely to weigh on investment sentiment at

times. We highlight these different risks because the current environment necessitates a flexible approach. However, we believe the greatest risks to the global economy are still those that are unknown today, whether they are financial or geopolitical in nature.

Sincerely,

CHARLES KANTOR
PORTFOLIO MANAGER

Information about the principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.

The portfolio composition, industries and holdings of the Fund are subject to change.

The opinions expressed are those of the Fund's portfolio manager. The opinions are as of the date of this report and are subject to change without notice.

¹ Intrinsic value reflects the portfolio manager's analysis and estimates of a company's value. There is no guarantee that any intrinsic values will be realized; security prices may decrease regardless of intrinsic value.

Long Short Fund (Unaudited)

TICKER SYMBOLS

Institutional Class				NLSIX
Class A				NLSAX
Class C				NLSCX

PORTFOLIO BY TYPE OF SECURITY

(as a % of Total Investments)

	Long			Short
Common Stocks		87.0	%		(10.3	)%
Corporate Debt Securities		19.2			—
Exchange Traded Funds		—			(8.9	)
Preferred Stocks		0.1			—
Purchased Options		0.3			—
Short-Term Investments		12.6			—
Total		119.2	%		(19.2	)%

PERFORMANCE HIGHLIGHTS

	Average Annual Total Return Ended 10/31/2013
	Inception Date	1 Year			Life of Fund
At NAV
Institutional Class	12/29/2011		13.47	%		13.28	%
Class A	12/29/2011		13.08	%		12.90	%
Class C	12/29/2011		12.23	%		12.05	%
With Sales Charge
Class A			6.62	%		9.33	%
Class C			11.23	%		12.05	%
Index
S&P 500 Index^1,2			27.18	%		22.92	%
HFRX Equity Hedge Index^1,2			9.74	%		7.49	%

The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.

As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2012 were 2.59%, 3.03% and 4.14% for Institutional Class, Class A and Class C shares, respectively (before expense reimbursements and/or fee waivers, if any). The expense ratios were 1.86%, 2.20% and 2.98% for Institutional Class, Class A and Class C shares, respectively, after expense reimbursements and/or fee waivers.

Long Short Fund (Unaudited)

COMPARISON OF A $1,000,000 INVESTMENT

(000s omitted)

Endnotes

1 Please see "Glossary of Indices" on page 18 for a description of indices. The HFRX Index does take into account fees and expenses of investing since it is based on the underlying hedge funds' net returns. Please note that all other indices listed in this report do not take into account any fees, expenses or tax consequences of investing in the individual securities that they track, and that individuals cannot invest directly in any index. Data about the performance of an index is prepared or obtained by Neuberger Berman Management LLC ("Management") and reflects the reinvestment of income dividends and other distributions, if any. The Fund may invest in securities not included in a described index and may not invest in all securities included in a described index.

2 The date used to calculate Life of Fund performance for the index is the inception date of the oldest share class.

3 During the period from December 29, 2010 through April 30, 2011, the Fund had only one shareholder and the Fund was relatively small, which could have impacted Fund performance. The same techniques used to produce returns in a small fund may not work to produce similar returns in a larger fund.

For more complete information on any of the Neuberger Berman Alternative and Multi-Asset Class Funds, call Management at (800) 877-9700, or visit our website at www.nb.com.

Glossary of Indices

MSCI World Index:				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 24 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States.
50% MSCI World Index and 50% J.P. Morgan Global Government Bond Index:				A blended index combining the performance of two separate indexes, the MSCI World Index and the J.P. Morgan Global Government Bond Index. The blended index tracks the performance of the two indexes at a 50%/50% weight, and is rebalanced monthly. The J.P. Morgan Global Government Bond Index (GBI) provides a comprehensive measure for the performance of market-weighted local currency denominated fixed rate government debt of large developed government bond markets. This index covers 13 countries: Australia, Belgium, Canada, Denmark, France, Germany, Italy, Japan, the Netherlands, Spain, Sweden, the United Kingdom, and the United States. The index measures returns in USD terms with no currency hedging and is rebalanced monthly. All government debt issues with at least 13 months remaining to maturity and meeting liquidity requirements are included in the index.
S&P 500 Index:				Widely regarded as the standard for measuring the performance of large-cap stocks traded on U.S. markets and includes a representative sample of leading companies in leading industries.
Barclays 1-10 Year U.S. TIPS Index:				An unmanaged index market comprised of U.S. Treasury Inflation Protected securities having a maturity of at least 1 year and less than 10 years.
HFRX Equity Hedge Index:				The HFRX Equity Hedge Index is designed to reflect the performance of strategies that maintain positions both long and short in primarily equity and equity derivative securities. A wide variety of investment processes can be employed to arrive at an investment decision, including both quantitative and fundamental techniques; strategies can be broadly diversified or narrowly focused on specific sectors and can range broadly in terms of levels of net exposure, leverage employed, holding period, concentrations of market capitalizations and valuation ranges of typical portfolios. Equity Hedge managers would typically maintain at least 50%, and may in some cases be substantially entirely invested in equities, both long and short. Fund weights are determined by the optimization process. Constituent funds are selected from an eligible pool of the more than 6,800 funds that report performance to the Hedge Fund Research (HFR) database on a voluntary basis, and rebalanced quarterly. Funds included in the index must meet all of the following criteria: report monthly returns net of all fees; be denominated in USD; be active and accepting new investments; have a minimum 24 months track record; and the Fund's manager must have at least $50 million in assets under management. The index is available daily, with finalized month-end performance available two to three business days after the last business day of the month.
Russell 3000^® Index:				Measures the performance of the largest 3,000 U.S. companies, representing approximately 98% of the investable U.S. equity market.

Information About Your Fund's Expenses (Unaudited)

As a Fund shareholder, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds (if applicable); and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees (if applicable), and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in a Fund and compare these costs with the ongoing costs of investing in other mutual funds.

This table is designed to provide information regarding costs related to your investments. The following examples are based on an investment of $1,000 made at the beginning of the six month period ended October 31, 2013 and held for the entire period. The table illustrates each Fund's costs in two ways:

Actual Expenses and Performance:				The first section of the table provides information about actual account values and actual expenses in dollars, based on the Fund's actual performance during the period when the Fund was operational. You may use the information in this line, together with the amount you invested, to estimate the expenses you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section of the table under the heading entitled "Expenses Paid During the Period" to estimate the expenses you paid over the period.
Hypothetical Example for Comparison Purposes:				The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return at 5% per year before expenses. This return is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a Fund versus other funds. To do so, compare the expenses shown in this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses in the table are meant to highlight your ongoing costs only and do not include any transaction costs, such as sales charges (loads)(if applicable). Therefore, the information under the heading "Hypothetical (5% annual return before expenses)" is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

Expense Information as of 10/31/13 (Unaudited)

Neuberger Berman Alternative Funds
	ACTUAL										HYPOTHETICAL (5% ANNUAL RETURN BEFORE EXPENSES)⁽³⁾
	Beginning Account Value 5/1/13		Ending Account Value 10/31/13		Expenses Paid During the Period⁽¹⁾5/1/13 - 10/31/13			Expense Ratio			Beginning Account Value 5/1/13		Ending Account Value 10/31/13		Expenses Paid During the Period⁽¹⁾ 5/1/13 - 10/31/13		Expense Ratio
Dynamic Real Return Fund
Institutional Class	$	1,000.00	$	996.20	$	3.47			0.69	%	$	1,000.00	$	1,021.73	$	3.52		0.69	%
Class A	$	1,000.00	$	994.20	$	5.28			1.05	%	$	1,000.00	$	1,019.91	$	5.35		1.05	%
Class C	$	1,000.00	$	990.40	$	9.03			1.80	%	$	1,000.00	$	1,016.13	$	9.15		1.80	%
Flexible Select Fund
Institutional Class	$	1,000.00	$	1,080.00	$	3.64	⁽²⁾		0.83	%	$	1,000.00	$	1,021.02	$	4.23		0.83	%
Class A	$	1,000.00	$	1,078.00	$	5.22	⁽²⁾		1.19	%	$	1,000.00	$	1,019.21	$	6.06		1.19	%
Class C	$	1,000.00	$	1,075.00	$	8.49	⁽²⁾		1.94	%	$	1,000.00	$	1,015.43	$	9.86		1.94	%
Global Allocation Fund
Institutional Class	$	1,000.00	$	1,036.50	$	7.19			1.40	%	$	1,000.00	$	1,018.15	$	7.12		1.40	%
Class A	$	1,000.00	$	1,034.90	$	9.08			1.77	%	$	1,000.00	$	1,016.28	$	9.00		1.77	%
Class C	$	1,000.00	$	1,030.70	$	12.90			2.52	%	$	1,000.00	$	1,012.50	$	12.78		2.52	%
Long Short Fund
Institutional Class	$	1,000.00	$	1,054.90	$	8.96			1.73	%	$	1,000.00	$	1,016.48	$	8.79		1.73	%
Class A	$	1,000.00	$	1,053.50	$	10.66			2.06	%	$	1,000.00	$	1,014.82	$	10.46		2.06	%
Class C	$	1,000.00	$	1,049.70	$	14.52			2.81	%	$	1,000.00	$	1,011.04	$	14.24		2.81	%

(1) For each class, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown), unless otherwise indicated.

(2) For each class, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 154/365 (to reflect the period shown of May 31, 2013 (Commencement of Operations) to October 31, 2013).

(3) Hypothetical 5% annual return before expenses is calculated by multiplying the number of days in the most recent period divided by 365.

Schedule of Investments Dynamic Real Return Fund

TOP TEN HOLDINGS

1	Neuberger Berman High Income Bond Fund Institutional Class	9.5	%
2	Neuberger Berman Risk Balanced Commodity Strategy Fund Institutional Class	9.0	%
3	Neuberger Berman Emerging Markets Equity Fund Institutional Class	8.8	%
4	Neuberger Berman Floating Rate Income Fund Institutional Class	5.6	%
5	Italy Buoni Poliennali Del Tesoro, Senior Unsecured Notes, 2.60%, due 9/15/23	2.7	%
6	Exxon Mobil Corp.	2.4	%
7	United Kingdom Gilt Inflation Linked Bonds, 0.13%, due 3/22/29	2.3	%
8	France Government Bond OAT, Bonds, 0.25%, due 7/25/24	2.1	%
9	U.S. Treasury Inflation Indexed Notes, 1.13%, due 1/15/21	1.7	%
10	U.S. Treasury Inflation Indexed Notes, 0.13%, due 1/15/23	1.7	%

	Number of Shares		Value†
Common Stocks (40.4%)
Chemicals (7.6%)
Air Products & Chemicals, Inc.		660	$	71,946
Airgas, Inc.		217		23,668
CF Industries Holdings, Inc.		205		44,198
Dow Chemical Co.		3,738		147,539
E. I. du Pont de Nemours & Co.		2,914		178,337
Eastman Chemical Co.		475		37,425
Ecolab, Inc.		827		87,662
FMC Corp.		435		31,651
International Flavors & Fragrances, Inc.		255		21,076
LyondellBasell Industries NV Class A		1,154		86,088
Monsanto Co.		1,694		177,667
Mosaic Co.		872		39,981
PPG Industries, Inc.		446		81,431
Praxair, Inc.		944		117,726
Sherwin-Williams Co.		268		50,384
Sigma-Aldrich Corp.		381		32,930
				1,229,709
Construction Materials (0.1%)
Vulcan Materials Co.		414		22,170
Containers & Packaging (0.6%)
Ball Corp.		481		23,516
Bemis Co., Inc.		323		12,888
MeadWestvaco Corp.		547		19,063
Owens-Illinois, Inc.		513		16,308	*
Sealed Air Corp.		616		18,591
				90,366

	Number of Shares		Value†
Energy Equipment & Services (1.8%)
Baker Hughes, Inc.		412	$	23,933
Cameron International Corp.		230		12,618	*
Diamond Offshore Drilling, Inc.		65		4,026
Ensco PLC Class A		222		12,798
FMC Technologies, Inc.		219		11,071	*
Halliburton Co.		865		45,871
Helmerich & Payne, Inc.		97		7,522
Nabors Industries Ltd.		278		4,859
National Oilwell Varco, Inc.		408		33,122
Noble Corp.		236		8,897
Rowan Cos. PLC Class A		115		4,149	*
Schlumberger Ltd.		1,245		116,681
				285,547
Gas Utilities (1.1%)
ONEOK, Inc.		1,600		90,400
Suburban Propane Partners LP		2,000		95,360
				185,760
Hotels, Restaurants & Leisure (0.5%)
Cedar Fair LP		1,700		77,945
Household Durables (0.2%)
TRI Pointe Homes, Inc.		1,630		25,950	*
Metals & Mining (1.7%)
Alcoa, Inc.		3,366		31,203
Allegheny Technologies, Inc.		330		10,923
Cliffs Natural Resources, Inc.		495		12,712

	Number of Shares		Value†
Freeport- McMoRan Copper & Gold, Inc.		3,152	$	115,868
Newmont Mining Corp.		1,671		45,551
Nucor Corp.		998		51,666
United States Steel Corp.		467		11,624
				279,547
Multi-Utilities (0.2%)
CenterPoint Energy, Inc.		1,600		39,360
Oil, Gas & Consumable Fuels (15.9%)
Alliance Holdings GP LP		1,800		107,352
Anadarko Petroleum Corp.		458		43,643
Apache Corp.		371		32,945
Boardwalk Pipeline Partners LP		2,400		71,880
Cabot Oil & Gas Corp.		376		13,280
Chesapeake Energy Corp.		483		13,505
Chevron Corp.		1,790		214,728
ConocoPhillips		1,120		82,096
CONSOL Energy, Inc.		203		7,410
Crestwood Equity Partners LP		5,500		83,050
Crestwood Midstream Partners LP		4,176		91,454
Denbury Resources, Inc.		358		6,798	*
Devon Energy Corp.		348		22,001
Energy Transfer Equity LP		2,050		138,559
Enterprise Products Partners		2,100		132,888
EOG Resources, Inc.		252		44,957

See Notes to Schedule of Investments

	Number of Shares		Value†
EQT Corp.		139	$	11,900
Exxon Mobil Corp.		4,233		379,361
Hess Corp.		268		21,762
Kinder Morgan, Inc.		581		20,515
Marathon Oil Corp.		662		23,342
Marathon Petroleum Corp.		306		21,928
Murphy Oil Corp.		166		10,013
Newfield Exploration Co.		129		3,928	*
NGL Energy Partners LP		1,500		47,190
Noble Energy, Inc.		332		24,877
NuStar GP Holdings LLC		1,700		41,735
Occidental Petroleum Corp.		747		71,772
Peabody Energy Corp.		255		4,967
Phillips 66		591		38,078
Pioneer Natural Resources Co.		119		24,369
PVR Partners LP		4,200		109,998
QEP Resources, Inc.		164		5,422
Range Resources Corp.		150		11,356
Regency Energy Partners LP		5,800		147,842
Southcross Energy Partners LP		1,600		32,320
Southwestern Energy Co.		323		12,022	*
Spectra Energy Corp.		2,407		85,617
Spectra Energy Partners LP		900		39,348
Teekay LNG Partners LP		850		35,275
Teekay Offshore Partners LP		1,700		57,137
Tesoro Corp.		130		6,356
Valero Energy Corp.		521		21,450
Western Gas Partners LP		600		36,066
Williams Cos., Inc.		3,017		107,737
WPX Energy, Inc.		181		4,007	*
				2,564,236
Paper & Forest Products (0.4%)
International Paper Co.		1,364		60,848
Real Estate Investment Trusts (9.8%)
American Campus Communities, Inc.		475		16,416

	Number of Shares		Value†
American Homes 4 Rent Class A		800	$	12,384	ñ*
American Homes 4 Rent Class A		1,345		20,821	*
American Residential Properties, Inc.		1,570		27,051	*
American Tower Corp.		1,330		105,535
AvalonBay Communities, Inc.		580		72,529
Boston Properties, Inc.		550		56,925
Brixmor Property Group, Inc.		600		12,390	*
Camden Property Trust		510		32,742
CBL & Associates Properties, Inc.		820		16,244
Corporate Office Properties Trust		885		21,771
Cousins Properties, Inc.		1,565		17,731
DDR Corp.		2,020		34,239
Digital Realty Trust, Inc.		610		29,073
Douglas Emmett, Inc.		1,160		28,919
EastGroup Properties, Inc.		480		30,557
Equity Residential		1,375		71,995
Federal Realty Investment Trust		325		33,670
General Growth Properties, Inc.		2,110		44,795
HCP, Inc.		1,237		51,336
Health Care REIT, Inc.		525		34,046
Highwoods Properties, Inc.		530		20,458
Host Hotels & Resorts, Inc.		2,375		44,056
LaSalle Hotel Properties		950		29,498
OMEGA Healthcare Investors, Inc.		750		24,930
Post Properties, Inc.		565		25,843
Prologis, Inc.		1,785		71,311
Public Storage		520		86,824
QTS Realty Trust, Inc. Class A		800		17,184	*
Rayonier, Inc.		490		23,040
Simon Property Group, Inc.		985		152,232

	Number of Shares			Value†
SL Green Realty Corp.		325		$	30,735
Sovran Self Storage, Inc.		220			16,828
Taubman Centers, Inc.		385			25,329
Terreno Realty Corp.		960			17,069
Urstadt Biddle Properties, Inc. Class A		985			19,444
Ventas, Inc.		960			62,630
Vornado Realty Trust		825			73,474
Weyerhaeuser Co.		2,055			62,472
					1,574,526
Real Estate Management & Development (0.5%)
Altisource Residential Corp.		925			24,577
Brookfield Asset Management, Inc. Class A		595			23,550
Forest City Enterprises, Inc. Class A		1,365			27,655	*
					75,782
Specialty Retail (0.0%)
CST Brands, Inc.		57			1,837
Murphy USA, Inc.		41			1,664	*
					3,501
Total Common Stocks (Cost $5,984,071)					6,515,247
	Principal Amount
Government Securities (13.5%)
Sovereign (13.5%)
Australia Government Bond, Senior Unsecured Notes, 1.25%, due 2/21/22	AUD	44,952	^a		43,217
Australia Government Bond, Senior Unsecured Notes, 2.50%, due 9/20/30	AUD	160,000	^a		178,773
Canadian Government Bond, Bonds, 4.25%, due 12/1/21	CAD	148,176	^a		186,745

See Notes to Schedule of Investments

	Principal Amount			Value†
France Government Bond OAT, Bonds, 0.25%, due 7/25/24	EUR	257,440	^a	$	337,120
Italy Buoni Poliennali Del Tesoro, Bonds, 2.55%, due 9/15/41	EUR	37,793	^a		43,667
Italy Buoni Poliennali Del Tesoro, Senior Unsecured Notes, 2.35%, due 9/15/35	EUR	118,807	^a		144,056
Italy Buoni Poliennali Del Tesoro, Senior Unsecured Notes, 2.60%, due 9/15/23	EUR	323,372	^a		434,169
New Zealand Government Bond, Senior Unsecured Notes, 2.00%, due 9/20/25	NZD	180,000	^a		141,700
Sweden Government Bond, Bonds, 0.25%, due 6/1/22	SEK	1,185,000	^a		177,783
United Kingdom Gilt Inflation Linked Bonds, 0.13%, due 3/22/24	GBP	41,409	^a		69,595
United Kingdom Gilt Inflation Linked Bonds, 0.13%, due 3/22/29	GBP	221,974	^a		367,117
United Kingdom Gilt Inflation Linked Bonds, 1.88%, due 11/22/22	GBP	30,507	^a		60,344
Total Government Securities (Cost $2,201,381)					2,184,286

	Principal Amount		Value†
U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government (10.6%)
U.S. Treasury Inflation Indexed Bonds, 0.63%, due 2/15/43	$	86,463	$	71,440
U.S. Treasury Inflation Indexed Bonds, 1.75%, due 1/15/28		217,684		244,368
U.S. Treasury Inflation Indexed Bonds, 2.13%, due 1/15/19		196,070		223,260
U.S. Treasury Inflation Indexed Bonds, 2.13%, due 2/15/40		91,972		109,468
U.S. Treasury Inflation Indexed Bonds, 2.38%, due 1/15/25		55,832		66,727
U.S. Treasury Inflation Indexed Bonds, 3.88%, due 4/15/29		135,148		194,053
U.S. Treasury Inflation Indexed Notes, 0.13%, due 1/15/22		258,320		255,979
U.S. Treasury Inflation Indexed Notes, 0.13%, due 1/15/23		278,630		272,078
U.S. Treasury Inflation Indexed Notes, 1.13%, due 1/15/21		256,584		276,990
Total U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government (Cost $1,819,620)				1,714,363

	Number of Shares		Value†
Mutual Funds (33.0%)
Neuberger Berman Emerging Markets Equity Fund Institutional Class		84,322	$	1,426,337	^§
Neuberger Berman Floating Rate Income Fund Institutional Class		88,308		908,393	^§
Neuberger Berman High Income Bond Fund Institutional Class		159,659		1,539,701	^§
Neuberger Berman Risk Balanced Commodity Strategy Fund Institutional Class		161,988		1,458,878	*^§
Total Mutual Funds (Cost $5,369,977)				5,333,309
Exchange Traded Funds (1.5%)
Energy Select Sector SPDR Fund		2,300		198,697
Materials Select Sector SPDR Trust		800		35,016
Total Exchange Traded Funds (Cost $225,192)				233,713
Short-Term Investments (0.8%)
State Street Institutional Liquid Reserves Fund Institutional Class (Cost $127,327)		127,327		127,327
Total Investments (99.8%) (Cost $15,727,568)				16,108,245	^##
Cash, receivables and other assets, less liabilities (0.2%)				34,075	^±
Total Net Assets (100.0%)			$	16,142,320

See Notes to Schedule of Investments

Schedule of Investments Flexible Select Fund

TOP TEN HOLDINGS

1	Neuberger Berman Core Bond Fund Insitutional Class	6.8	%
2	Microsoft Corp.	1.7	%
3	Bristol-Myers Squibb Co.	1.6	%
4	Occidental Petroleum Corp.	1.5	%
5	Schlumberger Ltd.	1.5	%
6	Pfizer, Inc.	1.4	%
7	IBM Corp.	1.4	%
8	Apple, Inc.	1.3	%
9	Google, Inc. Class A	1.3	%
10	Johnson & Johnson	1.3	%

	Number of Shares		Value†
Common Stocks (86.1%)
Aerospace & Defense (3.0%)
Boeing Co.		8,562	$	1,117,341
General Dynamics Corp.		7,642		662,026
Honeywell International, Inc.		5,874		509,452
Lockheed Martin Corp.		78		10,401
Precision Castparts Corp.		629		159,420
Raytheon Co.		929		76,522
United Technologies Corp.		1,053		111,881
				2,647,043
Air Freight & Logistics (0.6%)
FedEx Corp.		1,192		156,152
United Parcel Service, Inc. Class B		3,736		367,025
				523,177
Airlines (0.4%)
Delta Air Lines, Inc.		12,292		324,263
Auto Components (0.2%)
BorgWarner, Inc.		1,482		152,839
Delphi Automotive PLC		1,015		58,058
				210,897
Beverages (1.6%)
Anheuser-Busch InBev NV ADR		2,655		275,403
Beam, Inc.		1,564		105,257
Coca-Cola Co.		14,186		561,340
Dr Pepper Snapple Group, Inc.		2,968		140,535
PepsiCo, Inc.		3,683		309,704
				1,392,239

	Number of Shares		Value†
Biotechnology (1.3%)
Amgen, Inc.		3,808	$	441,728
Celgene Corp.		1,177		174,773	*
Regeneron Pharmaceuticals, Inc.		1,703		489,783	*
Vertex Pharmaceuticals, Inc.		351		25,040	*
				1,131,324
Capital Markets (1.1%)
BlackRock, Inc.		1,170		351,948
Franklin Resources, Inc.		2,141		115,314
Goldman Sachs Group, Inc.		1,590		255,767
Golub Capital BDC, Inc.		1,226		21,577
Hannon Armstrong Sustainable Infrastructure Capital, Inc.		1,187		14,541
Invesco Ltd.		1,713		57,814
T. Rowe Price Group, Inc.		1,141		88,325
UBS AG		4,050		78,408	*
				983,694
Chemicals (2.9%)
Air Products & Chemicals, Inc.		463		50,472
Ashland, Inc.		3,744		346,507
E. I. du Pont de Nemours & Co.		1,993		121,972
Ecolab, Inc.		3,760		398,560
International Flavors & Fragrances, Inc.		903		74,633
Methanex Corp.		1,038		60,370
Minerals Technologies, Inc.		2,941		166,549
Monsanto Co.		3,499		366,975
Mosaic Co.		1,542		70,701
Praxair, Inc.		2,050		255,655

	Number of Shares		Value†
Scotts Miracle-Gro Co. Class A		1,292	$	75,866
Sensient Technologies Corp.		3,616		188,502
WR Grace & Co.		3,420		313,477	*
				2,490,239
Commercial Banks (1.2%)
BankUnited, Inc.		1,585		48,770
First Republic Bank		1,048		53,521
Itau Unibanco Holding SA ADR, Preference Shares		7,987		123,080
M&T Bank Corp.		1,121		126,146
PNC Financial Services Group, Inc.		535		39,339
U.S. Bancorp		4,411		164,795
Wells Fargo & Co.		11,839		505,407
				1,061,058
Commercial Services & Supplies (1.3%)
Covanta Holding Corp.		13,218		226,953
Healthcare Services Group, Inc.		4,829		132,266
Knoll, Inc.		496		8,144
Pitney Bowes, Inc.		13,183		281,325
Stericycle, Inc.		1,851		215,086	*
Tetra Tech, Inc.		4,660		121,766	*
Tyco International Ltd.		4,290		156,800
				1,142,340
Communications Equipment (0.5%)
Arris Group, Inc.		3,676		65,653	*
Cisco Systems, Inc.		14,413		324,293
				389,946

See Notes to Schedule of Investments

	Number of Shares		Value†
Computers & Peripherals (2.3%)
Apple, Inc.		2,228	$	1,163,796
EMC Corp.		26,185		630,273
SanDisk Corp.		2,772		192,654
				1,986,723
Construction & Engineering (0.2%)
Chicago Bridge & Iron Co. NV		1,064		78,832
Quanta Services, Inc.		4,169		125,945	*
				204,777
Consumer Finance (0.8%)
American Express Co.		8,846		723,603
Containers & Packaging (0.8%)
Avery Dennison Corp.		1,554		73,225
Packaging Corp. of America		1,594		99,274
Sealed Air Corp.		16,796		506,903
				679,402
Diversified Consumer Services (0.1%)
Sotheby's		1,463		75,930
Diversified Financial Services (2.6%)
Berkshire Hathaway, Inc. Class B		5,040		580,003	*
Citigroup, Inc.		2,623		127,950
CME Group, Inc.		3,607		267,675
Intercontinental Exchange, Inc.		838		161,508	*
JPMorgan Chase & Co.		21,800		1,123,572
				2,260,708
Diversified Telecommunication Services (0.5%)
AT&T, Inc.		2,749		99,514
BCE Inc.		3,925		170,855
Singapore Telecommunications Ltd.		48,568		147,792
tw telecom, Inc.		1,456		45,893	*
				464,054
Electric Utilities (1.6%)
El Paso Electric Co.		393		13,822
Great Plains Energy, Inc.		11,107		260,348
ITC Holdings Corp.		2,661		267,670
NextEra Energy, Inc.		6,392		541,722

	Number of Shares		Value†
Northeast Utilities		3,160	$	135,533
NRG Yield, Inc. Class A		1,220		43,212	*
OGE Energy Corp.		1,438		53,062
Pinnacle West Capital Corp.		1,068		59,840
				1,375,209
Electrical Equipment (0.5%)
ABB Ltd. ADR		3,833		97,626	*
Eaton Corp. PLC		2,144		151,281
Rockwell Automation, Inc.		1,217		134,369
Roper Industries, Inc.		512		64,927
				448,203
Electronic Equipment, Instruments & Components (0.5%)
Corning, Inc.		12,540		214,308
Dolby Laboratories, Inc. Class A		1,483		53,002
National Instruments Corp.		2,452		71,231
Universal Display Corp.		1,844		58,824	*
				397,365
Energy Equipment & Services (2.3%)
Dresser-Rand Group, Inc.		1,464		88,967	*
Ensco PLC Class A		2,658		153,234
FMC Technologies, Inc.		1,827		92,355	*
Rowan Cos. PLC Class A		3,621		130,646	*
Schlumberger Ltd.		13,676		1,281,715
SEACOR Holdings, Inc.		256		25,037
Seadrill Ltd.		4,746		221,258
				1,993,212
Food & Staples Retailing (1.1%)
Costco Wholesale Corp.		2,163		255,234
CVS Caremark Corp.		2,994		186,406
Safeway, Inc.		4,120		143,788
Walgreen Co.		6,762		400,581
				986,009

	Number of Shares		Value†
Food Products (2.7%)
Bunge Ltd.		2,084	$	171,159
ConAgra Foods, Inc.		10,826		344,375
Kraft Foods Group, Inc.		7,538		409,916
McCormick & Co., Inc.		822		56,841
Mead Johnson Nutrition Co.		1,542		125,920
Mondelez International, Inc. Class A		10,855		365,162
Nestle SA ADR		2,526		182,908
Unilever NV		9,992		396,882
WhiteWave Foods Co. Class A		12,998		260,090	*
				2,313,253
Gas Utilities (0.1%)
National Fuel Gas Co.		1,761		126,000
Health Care Equipment & Supplies (2.5%)
Abbott Laboratories		2,129		77,815
Baxter International, Inc.		809		53,289
Becton, Dickinson & Co.		678		71,278
C.R. Bard, Inc.		3,671		500,064
Cooper Cos., Inc.		504		65,122
Covidien PLC		4,319		276,891
Edwards Lifesciences Corp.		1,820		118,646	*
Hill-Rom Holdings, Inc.		2,650		109,418
IDEXX Laboratories, Inc.		2,789		300,821	*
Medtronic, Inc.		4,337		248,944
Sirona Dental Systems, Inc.		3,327		240,376	*
West Pharmaceutical Services, Inc.		667		32,249
Zimmer Holdings, Inc.		662		57,905
				2,152,818
Health Care Providers & Services (2.2%)
Cardinal Health, Inc.		6,083		356,829
DaVita HealthCare Partners, Inc.		2,022		113,657	*
Express Scripts Holding Co.		9,045		565,493	*

See Notes to Schedule of Investments

	Number of Shares		Value†
HCA Holdings, Inc.		3,321	$	156,552
Henry Schein, Inc.		1,745		196,190	*
McKesson Corp.		1,645		257,179
VCA Antech, Inc.		5,195		147,798	*
WellPoint Inc.		1,081		91,669
				1,885,367
Hotels, Restaurants & Leisure (1.8%)
Arcos Dorados Holdings, Inc. Class A		6,030		72,601
Darden Restaurants, Inc.		1,992		102,648
Dunkin' Brands Group, Inc.		5,606		267,294
Hyatt Hotels Corp. Class A		2,952		140,515	*
Las Vegas Sands Corp.		2,588		181,730
McDonald's Corp.		5,756		555,569
Starbucks Corp.		1,787		144,836
Wendy's Co.		12,753		110,824
				1,576,017
Household Durables (0.7%)
Jarden Corp.		1,969		109,004	*
Lennar Corp. Class A		4,447		158,091
Newell Rubbermaid, Inc.		7,475		221,484
Toll Brothers, Inc.		3,071		100,975	*
Tupperware Brands Corp.		679		60,872
				650,426
Household Products (1.3%)
Church & Dwight Co., Inc.		2,877		187,437
Procter & Gamble Co.		11,871		958,583
				1,146,020
Independent Power Producers & Energy Traders (0.3%)
AES Corp.		9,073		127,839
Calpine Corp.		8,409		169,609	*
				297,448
Industrial Conglomerates (1.8%)
3M Co.		4,140		521,019
Danaher Corp.		5,872		423,313
General Electric Co.		17,093		446,811
Koninklijke Philips NV		5,951		210,725
				1,601,868

	Number of Shares		Value†
Insurance (2.4%)
Allstate Corp.		2,745	$	145,650
American International Group, Inc.		5,723		295,593
Aon PLC		4,260		336,923
Assurant, Inc.		654		38,246
Enstar Group Ltd.		220		29,905	*
Lincoln National Corp.		1,262		57,307
Loews Corp.		976		47,150
Marsh & McLennan Cos., Inc.		3,326		152,331
MetLife, Inc.		4,418		209,016
Progressive Corp.		5,598		145,380
Reinsurance Group of America, Inc.		2,709		192,827
Torchmark Corp.		657		47,869
Travelers Cos., Inc.		3,893		335,966
Unum Group		2,572		81,635
				2,115,798
Internet & Catalog Retail (0.4%)
Amazon.com, Inc.		896		326,171	*
Internet Software & Services (1.9%)
eBay, Inc.		8,068		425,264	*
Facebook, Inc. Class A		2,268		113,990	*
Google, Inc. Class A		1,111		1,144,974	*
				1,684,228
IT Services (2.8%)
Accenture PLC Class A		955		70,192
Amdocs Ltd.		6,677		256,731
Automatic Data Processing, Inc.		2,077		155,713
Fiserv, Inc.		906		94,885	*
Genpact Ltd.		7,044		139,683	*
IBM Corp.		6,644		1,190,671
MasterCard, Inc. Class A		207		148,440
VeriFone Systems, Inc.		2,818		63,856	*
Visa, Inc. Class A		1,631		320,769
Western Union Co.		2,460		41,869
				2,482,809
Leisure Equipment & Products (0.4%)
Mattel, Inc.		5,302		235,250
Polaris Industries, Inc.		1,009		132,128
				367,378

	Number of Shares		Value†
Life Sciences Tools & Services (0.1%)
Charles River Laboratories International, Inc.		1,331	$	65,499	*
Thermo Fisher Scientific, Inc.		331		32,365
				97,864
Machinery (1.0%)
Deere & Co.		2,065		169,000
Dover Corp.		865		79,398
Ingersoll-Rand PLC		1,277		86,236
Mueller Industries, Inc.		1,499		90,375
Pall Corp.		1,014		81,647
Pentair Ltd.		4,257		285,602
Valmont Industries, Inc.		311		43,695
				835,953
Media (3.2%)
Comcast Corp. Class A		5,513		262,309
Comcast Corp. Class A Special		4,592		212,610
Discovery Communications, Inc. Class C		1,235		102,147	*
Gannett Co., Inc.		3,979		110,099
Lions Gate Entertainment Corp.		1,809		62,555	*
News Corp. Class A		8,868		156,077	*
Omnicom Group, Inc.		2,126		144,802
Pearson PLC		8,167		170,758
Pearson PLC ADR		4,641		97,461
Regal Entertainment Group Class A		9,602		182,534
Scripps Networks Interactive, Inc. Class A		1,127		90,724
Thomson Reuters Corp.		1,232		46,286
Time Warner, Inc.		1,102		75,751
Twenty-First Century Fox, Inc. Class A		5,766		196,505
Viacom, Inc. Class B		5,809		483,832
Walt Disney Co.		6,250		428,687
				2,823,137

See Notes to Schedule of Investments

	Number of Shares		Value†
Metals & Mining (0.7%)
Allegheny Technologies, Inc.		1,938	$	64,148
BHP Billiton Ltd. ADR		1,205		85,181
Carpenter Technology Corp.		3,134		185,940
Freeport- McMoRan Copper & Gold, Inc.		1,765		64,881
Goldcorp, Inc.		5,213		132,567
Nucor Corp.		1,836		95,050
				627,767
Multi-Utilities (1.6%)
Alliant Energy Corp.		4,361		227,732
Ameren Corp.		7,279		263,354
CenterPoint Energy, Inc.		11,517		283,318
Dominion Resources, Inc.		2,085		132,919
NiSource, Inc.		2,112		66,570
Sempra Energy		2,072		188,842
Wisconsin Energy Corp.		4,621		194,590
				1,357,325
Multiline Retail (0.3%)
Kohl's Corp.		1,617		91,846
Macy's, Inc.		2,623		120,946
Nordstrom, Inc.		1,474		89,133
				301,925
Office Electronics (0.0%)
Xerox Corp.		3,646		36,241
Oil, Gas & Consumable Fuels (9.6%)
Anadarko Petroleum Corp.		6,590		627,961
Apache Corp.		402		35,698
ARC Resources Ltd.		3,152		84,921
BG Group PLC		6,283		128,294
BG Group PLC ADR		1,110		22,711
Cabot Oil & Gas Corp.		16,214		572,678
Cenovus Energy, Inc.		11,072		329,060
Cheniere Energy, Inc.		607		24,159	*
Chevron Corp.		1,718		206,091
ConocoPhillips		2,449		179,512
Continental Resources, Inc.		530		60,367	*
Denbury Resources, Inc.		7,533		143,052	*
Devon Energy Corp.		1,149		72,640

	Number of Shares		Value†
Enbridge Inc.		6,951	$	301,604
EOG Resources, Inc.		5,041		899,314
Exxon Mobil Corp.		5,010		448,996
GasLog Ltd.		1,198		17,826
Kinder Morgan, Inc.		6,302		222,524
Occidental Petroleum Corp.		13,720		1,318,218
Pioneer Natural Resources Co.		3,280		671,678
QEP Resources, Inc.		2,181		72,104
Range Resources Corp.		14,603		1,105,593
Southwestern Energy Co.		3,783		140,803	*
Spectra Energy Corp.		2,298		81,740
Targa Resources Corp.		1,247		96,717
Teekay Corp.		7,810		339,188
Whiting Petroleum Corp.		1,951		130,502	*
Williams Cos., Inc.		2,084		74,420
				8,408,371
Paper & Forest Products (0.1%)
International Paper Co.		2,387		106,484
Personal Products (0.5%)
Estee Lauder Cos., Inc. Class A		4,047		287,175
Nu Skin Enterprises, Inc. Class A		994		116,229
				403,404
Pharmaceuticals (6.8%)
AbbVie, Inc.		4,092		198,257
Allergan, Inc.		1,281		116,071
AstraZeneca PLC ADR		4,593		242,786
Bristol-Myers Squibb Co.		26,514		1,392,515
Johnson & Johnson		12,174		1,127,434
Merck & Co., Inc.		1,780		80,260
Novartis AG ADR		8,312		644,596
Pfizer, Inc.		40,997		1,257,788
Roche Holding AG		410		113,509
Roche Holding AG ADR		3,543		245,672

	Number of Shares		Value†
Sanofi ADR		5,388	$	288,150
Teva Pharmaceutical Industries Ltd. ADR		1,939		71,917
Zoetis, Inc.		6,263		198,287
				5,977,242
Professional Services (0.9%)
IHS Inc. Class A		1,157		126,171	*
Nielsen Holdings NV		11,571		456,360
Verisk Analytics, Inc. Class A		3,451		236,463	*
				818,994
Real Estate Investment Trusts (2.9%)
American Campus Communities, Inc.		2,501		86,435
American Tower Corp.		6,224		493,874
Ares Commercial Real Estate Corp.		3,907		48,564
Corrections Corporation of America		2,465		91,205
Equity Residential		1,962		102,730
HCP, Inc.		3,547		147,201
Plum Creek Timber Co., Inc.		5,118		232,357
Prologis, Inc.		3,484		139,186
Public Storage		992		165,634
Simon Property Group, Inc.		613		94,739
Starwood Property Trust, Inc.		14,726		378,311
Ventas, Inc.		2,414		157,489
Vornado Realty Trust		1,475		131,364
Weyerhaeuser Co.		8,104		246,362
				2,515,451
Real Estate Management & Development (0.2%)
Brookfield Asset Management, Inc. Class A		3,559		140,865
Road & Rail (1.7%)
Avis Budget Group, Inc.		1,944		60,905	*
Canadian National Railway Co.		136		14,950

See Notes to Schedule of Investments

	Number of Shares		Value†
Canadian Pacific Railway Ltd.		1,738	$	248,656
CSX Corp.		7,548		196,701
Hertz Global Holdings, Inc.		12,030		276,209	*
J.B. Hunt Transport Services, Inc.		1,859		139,481
Kansas City Southern		554		67,322
Norfolk Southern Corp.		3,679		316,467
Union Pacific Corp.		959		145,193
				1,465,884
Semiconductors & Semiconductor Equipment (1.1%)
Altera Corp.		8,872		298,099
ASML Holding NV		988		93,504
Intel Corp.		6,141		150,025
Texas Instruments, Inc.		9,577		403,000
				944,628
Software (3.1%)
Activision Blizzard, Inc.		7,650		127,296
ANSYS, Inc.		853		74,595	*
Check Point Software Technologies Ltd.		820		47,576	*
Intuit, Inc.		5,824		415,892
Microsoft Corp.		42,962		1,518,707
NICE-Systems Ltd. ADR		3,895		152,606
Nuance Communications, Inc.		4,525		70,409	*
Oracle Corp.		8,089		270,981
				2,678,062
Specialty Retail (2.0%)
Bed Bath & Beyond, Inc.		4,794		370,672	*
Best Buy Co., Inc.		2,438		104,346
Foot Locker, Inc.		1,323		45,908
Gap Inc.		1,184		43,796
Home Depot, Inc.		4,995		389,061
L Brands, Inc.		1,357		84,962
PetSmart, Inc.		2,138		155,561
Staples, Inc.		4,952		79,826
Tiffany & Co.		2,620		207,425
Tile Shop Holdings, Inc.		5,054		112,856	*

	Number of Shares		Value†
TJX Cos., Inc.		2,752	$	167,294
Zale Corp.		661		10,332	*
				1,772,039
Textiles, Apparel & Luxury Goods (0.6%)
Deckers Outdoor Corp.		81		5,575	*
Hanesbrands, Inc.		1,827		124,455
Luxottica Group SpA ADR		1,473		79,351
NIKE, Inc. Class B		1,076		81,518
PVH Corp.		1,295		161,318
Wolverine World Wide, Inc.		1,195		68,999
				521,216
Thrifts & Mortgage Finance (0.1%)
People's United Financial, Inc.		5,239		75,599
Tobacco (0.3%)
Altria Group, Inc.		1,414		52,643
Philip Morris International, Inc.		2,347		209,165
				261,808
Trading Companies & Distributors (0.2%)
United Rentals, Inc.		1,012		65,365	*
W.W. Grainger, Inc.		287		77,194
				142,559
Transportation Infrastructure (0.1%)
Wesco Aircraft Holdings, Inc.		3,863		70,770	*
Water Utilities (0.2%)
American Water Works Co., Inc.		3,394		145,501
Wireless Telecommunication Services (0.1%)
SBA Communications Corp. Class A		1,363		119,222	*
Total Common Stocks (Cost $71,390,504)				75,265,327
Preferred Stocks (0.2%)
Commercial Banks (0.1%)
U.S. Bancorp, Ser. G, 6.00%		1,882		51,134
U.S. Bancorp, Ser. F, 6.50%		2,842		76,222
				127,356

	Number of Shares		Value†
Marine (0.1%)
Seaspan Corp., Ser. C, 9.50%		1,883	$	50,220
Total Preferred Stocks (Cost $178,249)				177,576
Exchange Traded Funds (0.1%)
ProShares UltraShort 20+ Year Treasury		162		11,819	*
SPDR Gold Shares		369		47,136	*
Total Exchange Traded Funds (Cost $59,999)				58,955
Mutual Funds (6.8%)
Central Fund of Canada Ltd. Class A		751		11,167
Neuberger Berman Core Bond Fund Institutional Class		576,112		5,975,624	^§
Total Mutual Funds (Cost $5,979,550)				5,986,791
Short-Term Investments (6.7%)
State Street Institutional Treasury Money Market Fund Institutional Class (Cost $5,875,649)		5,875,649		5,875,649
Total Investments (99.9%) (Cost $83,483,951)				87,364,298	^##
Cash, receivables and other assets, less liabilities (0.1%)				76,766
Total Net Assets (100.0%)			$	87,441,064

See Notes to Schedule of Investments

Schedule of Investments Global Allocation Fund

TOP TEN EQUITY HOLDINGS LONG POSITIONS

1	Delta Air Lines, Inc.	United States	Airlines	2.0	%
2	Keller Group PLC	United Kingdom	Construction & Engineering	1.5	%
3	Lincoln National Corp.	United States	Insurance	1.5	%
4	American Equity Investment Life Holding Co.	United States	Insurance	1.5	%
5	Argo Group International Holdings Ltd.	Bermuda	Insurance	1.3	%
6	Public Power Corp. SA	Greece	Electric Utilities	1.3	%
7	OPAP SA	Greece	Hotels, Restaurants & Leisure	1.3	%
8	American National Insurance Co.	United States	Insurance	1.2	%
9	Symetra Financial Corp.	United States	Insurance	1.2	%
10	Genworth Financial, Inc. Class A	United States	Insurance	1.1	%

TOP TEN EQUITY HOLDINGS SHORT POSITIONS

1	Southern Copper Corp.	United States	Metals & Mining	(1.9	)%
2	American Tower Corp.	United States	Real Estate Investment Trusts	(1.9	)%
3	Simon Property Group, Inc.	United States	Real Estate Investment Trusts	(1.7	)%
4	Federal Realty Investment Trust	United States	Real Estate Investment Trusts	(1.6	)%
5	CONSOL Energy, Inc.	United States	Oil, Gas & Consumable Fuels	(1.6	)%
6	Boston Properties, Inc.	United States	Real Estate Investment Trusts	(1.2	)%
7	Groupe Eurotunnel SA	France	Transportation Infrastructure	(1.0	)%
8	Glencore Xstrata PLC	Switzerland	Metals & Mining	(0.9	)%
9	Macerich Co.	United States	Real Estate Investment Trusts	(0.9	)%
10	Fresnillo PLC	Mexico	Metals & Mining	(0.9	)%

	Number of Shares		Value†
Long Positions (93.6%)
Common Stocks (36.2%)
Australia (0.2%)
BlueScope Steel Ltd.		10,321	$	48,677	*
Bermuda (3.0%)
Argo Group International Holdings Ltd.		9,449		396,669
Assured Guaranty Ltd.		10,463		214,491
Vostok Nafta Investment Ltd.		36,515		297,246	*
				908,406
Canada (0.2%)
BlackBerry Ltd.		8,255		65,160	*
Denmark (0.3%)
Dfds A/S		1,322		96,143
Greece (3.9%)
Hellenic Telecommunications Organization SA		13,805		174,129	*
JUMBO SA		15,591		209,570	*
OPAP SA		30,993		385,038
Public Power Corp. SA		26,609		395,967
				1,164,704

	Number of Shares		Value†
Guernsey (0.6%)
Tetragon Financial Group Ltd.		16,864	$	166,785
Hong Kong (0.2%)
Truly International Holdings		104,000		66,400
Italy (1.0%)
ASTM SpA		5,794		87,479
Safilo Group SpA		10,093		206,927	*
				294,406
Japan (2.1%)
ADEKA Corp.		14,000		163,877
Nippon Synthetic Chemical Industry Co. Ltd.		28,000		269,379
Temp Holdings Co. Ltd.		2,900		84,201
Tosoh Corp.		17,000		64,660
Toyo Tire & Rubber Co. Ltd.		8,000		46,537
				628,654
Jersey (0.7%)
Beazley PLC		54,036		198,235

	Number of Shares		Value†
Netherlands (0.3%)
AVG Technologies NV		4,785	$	96,178	*^È
United Kingdom (4.3%)
3i Group PLC		27,369		163,729
easyJet PLC		14,922		313,190
Enterprise Inns PLC		23,307		56,616	*
Keller Group PLC		26,811		451,812
Pace PLC		50,152		244,940
PayPoint PLC		2,930		48,906
				1,279,193
United States (19.4%)
Alaska Air Group, Inc.		838		59,213
Allegiant Travel Co.		1,210		126,167	^È
American Equity Investment Life Holding Co.		21,014		437,932	^È
American National Insurance Co.		3,625		366,379
Brown Shoe Co, Inc.		5,861		131,521
CNO Financial Group, Inc.		6,029		93,932

See Notes to Schedule of Investments

	Number of Shares		Value†
Community Health Systems, Inc.		2,630	$	114,747
CVR Energy, Inc.		5,165		205,154
Delek US Holdings, Inc.		1,963		50,155
Delta Air Lines, Inc.		22,408		591,123
GameStop Corp. Class A		3,603		197,516	^È
Genworth Financial, Inc. Class A		23,563		342,370	*
Health Management Associates, Inc.		12,573		161,186	*^È
Hercules Offshore, Inc.		7,286		49,545	*
Horace Mann Educators Corp.		6,785		187,944	^È
JetBlue Airways Corp.		7,983		56,599	*^È
KapStone Paper and Packaging Corp.		5,630		292,535
Lincoln National Corp.		9,825		446,153
MetLife, Inc.		1,028		48,635
Nelnet, Inc.		1,331		56,741
Pilgrim's Pride Corp.		11,593		164,273	*
Proofpoint, Inc.		2,183		69,070	*
Protective Life Corp.		2,942		135,567
Resolute Forest Products, Inc.		13,415		214,506	*
Rite Aid Corp.		39,476		210,407	*
Sanmina Corp.		11,758		171,196	*
Schweitzer- Mauduit International, Inc.		2,220		137,374
Symetra Financial Corp.		19,093		357,612
Tesoro Corp.		940		45,957	^È
Unisys Corp.		2,771		73,016	*^È
US Airways Group, Inc.		2,692		59,143	*^È
VCA Antech, Inc.		2,025		57,611	*
Western Refining, Inc.		3,609		116,462	^È
				5,827,741
Total Common Stocks (Cost $9,478,742)				10,840,682

	Number of Shares			Value†
Short-Term Investments (57.4%)
State Street Institutional Government Money Market Fund Institutional Class (Cost $17,208,391)		17,208,391		$	17,208,391	^ØØ
Total Long Positions (93.6%) (Cost $26,687,133)					28,049,073	^##
Cash, receivables and other assets, less liabilities (40.0%)					12,000,445	^±
Short Positions (see summary below) ((33.6)%)					(10,084,725	)
Total Net Assets (100.0%)				$	29,964,793
Short Positions ((33.6)%)
Common Stocks Sold Short (33.6%)^‡
Australia (0.2%)
Newcrest Mining Ltd.		(5,177	)		(50,398	)
Austria (0.9%)
Andritz AG		(2,254	)		(138,849	)
Telekom Austria AG		(14,754	)		(121,535	)
					(260,384	)
Canada (1.1%)
Franco-Nevada Corp.		(2,138	)		(96,191	)
Tahoe Resources, Inc.		(12,545	)		(240,237	)*
					(336,428	)
China (0.1%)
ASM Pacific Technology Ltd.		(4,700	)		(45,375	)
Denmark (0.4%)
Vestas Wind Systems A/S		(4,635	)		(124,455	)*
Finland (0.8%)
Cargotec Oyj		(2,166	)		(79,228	)
Kone Oyj Class B		(1,862	)		(164,202	)
					(243,430	)
France (1.2%)
Groupe Eurotunnel SA		(31,246	)		(302,994	)
Peugeot SA		(3,904	)		(51,448	)*
					(354,442	)
Germany (1.3%)
Aixtron SE		(7,103	)		(102,565	)*

	Number of Shares			Value†
Deutsche Wohnen AG		(11,881	)	$	(223,581	)
MAN SE		(445	)		(53,623	)
					(379,769	)
Japan (1.8%)
Hokkaido Electric Power Co., Inc.		(5,800	)		(74,439	)*
Japan Steel Works Ltd.		(18,000	)		(100,132	)
Kansai Electric Power Co., Inc.		(8,800	)		(110,973	)*
Kyushu Electric Power Co., Inc.		(7,500	)		(105,182	)*
Mitsubishi Motors Corp.		(3,800	)		(42,433	)*
Sharp Corp.		(38,000	)		(111,685	)*
					(544,844	)
Mexico (0.9%)
Fresnillo PLC		(16,565	)		(259,096	)
Spain (0.7%)
Banco Popular Espanol SA		(29,251	)		(166,487	)*
Prosegur Cia de Seguridad SA		(9,711	)		(57,751	)
					(224,238	)
Sweden (0.6%)
Lundin Petroleum AB		(5,610	)		(115,835	)*
Sandvik AB		(5,938	)		(80,364	)
					(196,199	)
Switzerland (0.9%)
Glencore Xstrata PLC		(49,980	)		(272,469	)*
United Kingdom (2.7%)
Aggreko PLC		(9,586	)		(247,460	)
G4S PLC		(42,685	)		(178,973	)
Intu Properties PLC		(26,453	)		(145,992	)
Invensys PLC		(6,554	)		(52,859	)
Telecity Group PLC		(14,811	)		(181,078	)
					(806,362	)
United States (20.0%)
American Campus Communities, Inc.		(2,251	)		(77,795	)
American Realty Capital Properties, Inc.		(3,711	)		(49,245	)
American Tower Corp.		(7,184	)		(570,050	)
Apartment Investment & Management Co. Class A		(3,116	)		(87,186	)

See Notes to Schedule of Investments

	Number of Shares			Value†
Ariad Pharmaceuticals, Inc.		(4,391	)	$	(9,660	)*
Boston Properties, Inc.		(3,612	)		(373,842	)
Cobalt International Energy, Inc.		(4,190	)		(97,250	)*
CONSOL Energy, Inc.		(13,047	)		(476,215	)
Digital Realty Trust, Inc.		(3,766	)		(179,488	)
Duke Realty Corp.		(5,970	)		(98,923	)
Equinix, Inc.		(615	)		(99,310	)*
F5 Networks, Inc.		(746	)		(60,806	)*
Facebook, Inc. Class A		(1,971	)		(99,062	)*
Federal Realty Investment Trust		(4,752	)		(492,307	)
Five Below, Inc.		(2,516	)		(121,422	)*
Highwoods Properties, Inc.		(1,756	)		(67,782	)
Incyte Corp. Ltd.		(2,722	)		(106,158	)*
Infinity Pharmaceuticals, Inc.		(2,258	)		(30,596	)*
InterMune, Inc.		(3,963	)		(55,839	)*
JC Penney Co., Inc.		(19,801	)		(148,507	)*
Macerich Co.		(4,579	)		(271,123	)
Navistar International Corp.		(1,486	)		(53,734	)*
Netflix, Inc.		(200	)		(64,496	)*
ONEOK, Inc.		(968	)		(54,692	)
Palo Alto Networks, Inc.		(1,031	)		(43,467	)*
Peabody Energy Corp.		(12,938	)		(252,032	)
Regency Centers Corp.		(982	)		(50,730	)
Royal Gold, Inc.		(3,317	)		(159,349	)
Simon Property Group, Inc.		(3,229	)		(499,042	)
Southern Copper Corp.		(20,789	)		(581,052	)
Tanger Factory Outlet Centers		(4,529	)		(157,836	)
Tempur Sealy International, Inc.		(1,576	)		(60,440	)*
Theravance, Inc.		(3,914	)		(143,409	)*
Universal Display Corp.		(5,370	)		(171,303	)*
Volcano Corp.		(6,400	)		(122,688	)*
					(5,986,836	)
Total Short Positions (Proceeds $(9,984,602))					(10,084,725	)

See Notes to Schedule of Investments

LONG POSITIONS BY INDUSTRY GLOBAL ALLOCATION FUND (UNAUDITED)

Industry	Investments at Value^† ��			Percentage of Net Assets
Insurance	$	3,225,919			10.7	%
Airlines		1,205,435			4.0	%
Paper & Forest Products		644,415			2.2	%
Capital Markets		627,760		��	2.1	%
Specialty Retail		538,607			1.8	%
Chemicals		497,916			1.7	%
Construction & Engineering		451,812			1.5	%
Hotels, Restaurants & Leisure		441,654			1.5	%
Oil, Gas & Consumable Fuels		417,728			1.4	%
Electric Utilities		395,967			1.3	%
Health Care Providers & Services		333,544			1.1	%
Communications Equipment		310,100			1.0	%
Electronic Equipment, Instruments & Components		237,596			0.8	%
Food & Staples Retailing		210,407			0.7	%
Textiles, Apparel & Luxury Goods		206,927			0.7	%
Diversified Telecommunication Services		174,129			0.6	%
Software		165,248			0.6	%
Food Products		164,273			0.5	%
Marine		96,143			0.3	%
Transportation Infrastructure		87,479			0.3	%
Professional Services		84,201			0.3	%
IT Services		73,016			0.2	%
Consumer Finance		56,741			0.2	%
Energy Equipment & Services		49,545			0.2	%
Commercial Services & Supplies		48,906			0.2	%
Metals & Mining		48,677			0.2	%
Auto Components		46,537			0.1	%
Short-Term Investments and Other Assets-Net		29,208,836			97.4	%
Short Positions (see summary below)		(10,084,725	)		(33.6	)%
	$	29,964,793			100.0	%

See Notes to Schedule of Investments

SHORT POSITIONS BY INDUSTRY GLOBAL ALLOCATION FUND (UNAUDITED)

Industry	Investments at Value^†			Percentage of Net Assets
Real Estate Investment Trusts	$	(3,121,341	)		(10.4	)%
Metals & Mining		(1,658,792	)		(5.5	)%
Oil, Gas & Consumable Fuels		(941,332	)		(3.1	)%
Machinery		(722,991	)		(2.4	)%
Commercial Services & Supplies		(484,184	)		(1.6	)%
Internet Software & Services		(379,450	)		(1.3	)%
Biotechnology		(345,662	)		(1.2	)%
Transportation Infrastructure		(302,994	)		(1.0	)%
Electric Utilities		(290,594	)		(1.0	)%
Real Estate Management & Development		(223,581	)		(0.7	)%
Household Durables		(172,125	)		(0.6	)%
Electronic Equipment, Instruments & Components		(171,303	)		(0.6	)%
Commercial Banks		(166,487	)		(0.6	)%
Multiline Retail		(148,507	)		(0.5	)%
Semiconductors & Semiconductor Equipment		(147,940	)		(0.5	)%
Electrical Equipment		(124,455	)		(0.4	)%
Health Care Equipment & Supplies		(122,688	)		(0.4	)%
Diversified Telecommunication Services		(121,535	)		(0.4	)%
Specialty Retail		(121,422	)		(0.4	)%
Communications Equipment		(104,273	)		(0.3	)%
Automobiles		(93,881	)		(0.3	)%
Internet & Catalog Retail		(64,496	)		(0.2	)%
Gas Utilities		(54,692	)		(0.2	)%
Total Common Stocks Sold Short	$	(10,084,725	)		(33.6	)%

See Notes to Schedule of Investments

Schedule of Investments Long Short Fund

TOP TEN EQUITY HOLDINGS LONG POSITIONS

1	PVH Corp.	2.5	%
2	Brookfield Infrastructure Partners LP	2.0	%
3	PetSmart, Inc.	1.8	%
4	Enbridge, Inc.	1.8	%
5	Delta Air Lines, Inc.	1.6	%
6	DaVita HealthCare Partners, Inc.	1.5	%
7	Weyerhaeuser Co.	1.4	%
8	Genpact Ltd.	1.4	%
9	Dunkin' Brands Group, Inc.	1.4	%
10	Visa, Inc. Class A	1.3	%

TOP TEN EQUITY HOLDINGS SHORT POSITIONS (as a % of Net Assets)

1	IShares Russell Midcap Index Fund	(1.9	)%
2	iShares Core S&P Small-Cap ETF	(0.9	)%
3	Kohl's Corp.	(0.6	)%
4	Sysco Corp.	(0.6	)%
5	Marathon Petroleum Corp.	(0.5	)%
6	iShares Russell 2000 Fund	(0.5	)%
7	PG&E Corp.	(0.5	)%
8	Consumer Discretionary Select Sector SPDR Fund	(0.5	)%
9	SPDR S&P Retail ETF	(0.4	)%
10	Motorola Solutions, Inc.	(0.4	)%

	Number of Shares		Value†
Long Positions (84.7%)
Common Stocks (61.8%)
Aerospace & Defense (1.4%)
Boeing Co.		55,500	$	7,242,750
Precision Castparts Corp.		65,000		16,474,250
				23,717,000
Air Freight & Logistics (0.5%)
United Parcel Service, Inc. Class B		76,300		7,495,712
Airlines (1.6%)
Delta Air Lines, Inc.		1,020,000		26,907,600	^ØØ
Automobiles (0.7%)
General Motors Co.		327,500		12,101,125	*
Biotechnology (0.4%)
Vertex Pharmaceuticals, Inc.		95,400		6,805,836	*
Building Products (0.2%)
Ply Gem Holdings, Inc.		208,600		3,108,140	*
Capital Markets (0.9%)
BlackRock, Inc.		21,800		6,557,658
UBS AG		400,000		7,744,000	*
				14,301,658

	Number of Shares		Value†
Chemicals (0.5%)
Ashland, Inc.		84,200	$	7,792,710
Commercial Banks (1.2%)
Fifth Third Bancorp		254,000		4,833,620
U.S. Bancorp		160,900		6,011,224
Wells Fargo & Co.		201,000		8,580,690
				19,425,534
Commercial Services & Supplies (0.9%)
Copart, Inc.		440,000		14,181,200	*
Communications Equipment (0.4%)
Cisco Systems, Inc.		231,500		5,208,750
Juniper Networks, Inc.		69,000		1,286,160	*
				6,494,910
Computers & Peripherals (1.4%)
Apple, Inc.		19,700		10,290,295
SanDisk Corp.		184,400		12,815,800
				23,106,095
Consumer Finance (0.1%)
SLM Corp.		62,000		1,572,940
Containers & Packaging (0.5%)
Mead Westvaco Corp.		239,400		8,343,090

	Number of Shares		Value†
Diversified Consumer Services (0.2%)
K12, Inc.		160,450	$	2,933,026	*
Diversified Financial Services (1.8%)
Citigroup, Inc.		192,800		9,404,784
CME Group, Inc.		135,000		10,018,350
JPMorgan Chase & Co.		200,000		10,308,000
				29,731,134
Electric Utilities (2.8%)
Brookfield Infrastructure Partners LP		839,577		33,054,146	^ØØ
Northeast Utilities		220,000		9,435,800
NRG Yield, Inc. Class A		130,000		4,604,600	*
				47,094,546
Electronic Equipment, Instruments & Components (0.2%)
Amphenol Corp. Class A		51,000		4,094,790
Health Care Equipment & Supplies (1.9%)
C.R. Bard, Inc.		140,000		19,070,800
MAKO Surgical Corp.		75,000		2,235,750	*

See Notes to Schedule of Investments

	Number of Shares		Value†
Sirona Dental Systems, Inc.		148,000	$	10,693,000	*
				31,999,550
Health Care Providers & Services (1.9%)
Accretive Health, Inc.		906,000		7,483,560	*
DaVita HealthCare Partners, Inc.		439,500		24,704,295	*^ØØ
				32,187,855
Hotels, Restaurants & Leisure (2.6%)
Arcos Dorados Holdings, Inc. Class A		560,000		6,742,400
Dunkin' Brands Group, Inc.		475,800		22,686,144
McDonald's Corp.		103,000		9,941,560
Wyndham Worldwide Corp.		43,700		2,901,680
				42,271,784
Household Durables (1.3%)
Lennar Corp. Class A		495,000		17,597,250
Newell Rubbermaid, Inc.		140,000		4,148,200
				21,745,450
Household Products (0.3%)
Procter & Gamble Co.		68,200		5,507,150
Independent Power Producers & Energy Traders (0.1%)
Brookfield Renewable Energy Partners LP		35,700		980,322
Internet & Catalog Retail (1.1%)
Vipshop Holdings Ltd. ADS^‡‡		273,800		18,873,034	*^ØØ
Internet Software & Services (2.1%)
eBay, Inc.		310,000		16,340,100	*
Facebook, Inc. Class A		127,500		6,408,150	*
Google, Inc. Class A		12,000		12,366,960	*
				35,115,210

	Number of Shares		Value†
IT Services (2.7%)
Genpact Ltd.		1,190,189	$	23,601,448	*^ØØ
Visa, Inc. Class A		111,600		21,948,372
				45,549,820
Machinery (0.5%)
Ingersoll- Rand PLC		125,000		8,441,250
Metals & Mining (1.7%)
ArcelorMittal		497,500		7,840,600
Steel Dynamics, Inc.		650,000		11,680,500
United States Steel Corp.		333,300		8,295,837
				27,816,937
Multi-Utilities (0.7%)
NiSource, Inc.		114,200		3,599,584
Wisconsin Energy Corp.		183,000		7,706,130
				11,305,714
Multiline Retail (0.4%)
Target Corp.		92,000		5,960,680
Oil, Gas & Consumable Fuels (7.1%)
Alpha Natural Resources, Inc.		1,230,000		8,610,000	*
Antero Resources Corp.		254,000		14,348,460	*
Athlon Energy, Inc.		466,000		15,331,400	*
Cabot Oil & Gas Corp.		334,400		11,811,008
Enbridge, Inc.		669,700		29,058,283	^ØØ
Forest Oil Corp.		1,897,100		8,992,254	*
MarkWest Energy Partners LP		90,000		6,685,200
Peabody Energy Corp.		417,700		8,136,796
Pioneer Natural Resources Co.		24,000		4,914,720
Teekay Corp.		231,461		10,052,351
				117,940,472
Paper & Forest Products (0.5%)
International Paper Co.		180,800		8,065,488

	Number of Shares		Value†
Personal Products (0.6%)
Estee Lauder Cos., Inc. Class A		129,900	$	9,217,704
Pharmaceuticals (1.4%)
Bristol-Myers Squibb Co.		360,000		18,907,200
Pfizer, Inc.		136,500		4,187,820
				23,095,020
Professional Services (1.4%)
Nielsen Holdings NV		345,000		13,606,800
Verisk Analytics, Inc. Class A		131,242		8,992,702	*
				22,599,502
Real Estate Investment Trusts (1.7%)
General Growth Properties, Inc.		215,000		4,564,450
Weyerhaeuser Co.		780,000		23,712,000	^ØØ
				28,276,450
Real Estate Management & Development (0.9%)
Brookfield Asset Management, Inc. Class A		354,000		14,011,320
Brookfield Property Partners LP		74,214		1,429,362
				15,440,682
Road & Rail (1.1%)
Canadian Pacific Railway Ltd.		129,000		18,456,030
Semiconductors & Semiconductor Equipment (0.9%)
Altera Corp.		440,000		14,784,000
Software (1.1%)
Activision Blizzard, Inc.		651,000		10,832,640
MICROS Systems, Inc.		135,000		7,323,750	*
				18,156,390
Specialty Retail (4.9%)
Asbury Automotive Group, Inc.		268,860		12,918,723	*
Home Depot, Inc.		260,000		20,251,400

See Notes to Schedule of Investments

	Number of Shares		Value†
Monro Muffler Brake, Inc.		166,500	$	7,659,000
PetSmart, Inc.		404,239		29,412,430	^ØØ
Sally Beauty Holdings, Inc.		188,100		4,950,792	*
Tractor Supply Co.		89,000		6,350,150
				81,542,495
Textiles, Apparel & Luxury Goods (3.7%)
Lululemon Athetica, Inc.		65,700		4,536,585	*
Michael Kors Holdings Ltd.		160,000		12,312,000	*
PVH Corp.		329,000		40,983,530	^ØØ
Wolverine World Wide, Inc.		54,700		3,158,378
				60,990,493
Thrifts & Mortgage Finance (0.0%)
Essent Group Ltd.		37,500		637,500	*
Tobacco (0.5%)
Philip Morris International, Inc.		96,700		8,617,904
Transportation Infrastructure (1.1%)
Wesco Aircraft Holdings, Inc.		956,801		17,528,594	*
Water Utilities (1.2%)
American Water Works Co., Inc.		470,000		20,148,900
Wireless Telecommunication Services (0.7%)
SBA Communications Corp. Class A		131,300		11,484,811	*
Total Common Stocks (Cost $922,544,155)				1,023,944,237
Preferred Stocks (0.1%)
Automobiles (0.1%)
General Motors Co., Ser. B, 4.75%		16,200		831,384

	Number of Shares		Value†
Diversified Financial Services (0.0%)
Citigroup Capital XIII, 7.88%		2,600	$	71,500
Total Preferred Stocks (Cost $667,279)				902,884
	Principal Amount
Corporate Debt Securities (13.7%)
Airlines (0.7%)
United Continental Holdings, Inc., Guaranteed Notes, 6.38%, due 6/1/2018	$	11,685,000		12,123,188
Auto Manufacturers (0.5%)
Chrysler Group LLC/CG Co-Issuer, Inc., Secured Notes, 8.25%, due 6/15/21		6,620,000		7,488,875
Auto Parts & Equipment (0.8%)
American Axle & Manufacturing, Inc., Guaranteed Notes, 6.63%, due 10/15/22		5,080,000		5,359,400
The Goodyear Tire & Rubber Co., Guaranteed Notes, 6.50%, due 3/1/21		1,600,000		1,692,000
The Goodyear Tire & Rubber Co., Guaranteed Notes, 7.00%, due 5/15/22		5,730,000		6,159,750
				13,211,150
Building Materials (0.0%)
Masco	$	100,000	$	106,000

	Principal Amount		Value†
Corp., Senior Unsecured Notes, 5.95%, due 3/15/22
Coal (1.4%)
Alpha Natural Resources, Inc., Guaranteed Notes, 9.75%, due 4/15/18		9,511,000		9,796,330
Arch Coal, Inc., Guaranteed Notes, 7.00%, due 6/15/19		16,581,000		12,850,275
Arch Coal, Inc., Guaranteed Notes, 7.25%, due 10/1/20		650,000		494,812
				23,141,417
Computers (0.2%)
Apple, Inc., Senior Unsecured Notes, 3.85%, due 5/4/43		4,925,000		4,170,155
Diversified Financial Services (0.3%)
E*TRADE Financial Corp., Senior Unsecured Notes, 6.38%, due 11/15/19		1,490,000		1,594,300
E*TRADE Financial Corp., Senior Unsecured Notes, 6.75%, due 6/1/16		705,000		760,519
SLM Corp., Senior Unsecured Medium Term Notes, 6.00%, due, 1/25/17		100,000		108,750

See Notes to Schedule of Investments

	Principal Amount		Value†
SLM Corp., Senior Unsecured Notes, 5.50%, due 1/25/23	$	3,050,000	$	2,911,624
				5,375,193
Electric (0.8%)
DPL, Inc., Senior Unsecured Notes, 7.25%, due 10/15/21		12,335,000		12,828,400
Entertainment (0.0%)
Regal Entertainment Group, Guaranteed Notes, 9.13%, due 8/15/18		175,000		192,500
Food (0.0%)
Smithfield Foods, Inc., Senior Unsecured Notes, 6.63%, due 8/15/22		260,000		273,650
Healthcare-Services (0.9%)
CHS/ Community Health Systems, Inc., Guaranteed Notes, 7.13%, due 7/15/20		13,731,000		14,451,878
Iron—Steel (0.9%)
AK Steel Corp., Guaranteed Notes, 7.63%, due 5/15/20		9,657,000		8,643,015
United States Steel Corp., Senior Unsecured Notes, 7.38%, due 4/1/20		5,940,000		6,266,700
United States Steel Corp., Senior Unsecured Notes, 7.50%, due 3/15/22		175,000		183,313
				15,093,028

	Principal Amount		Value†
Media (1.4%)
Cable- vision Systems Corp., Senior Unsecured Notes, 5.88%, due 9/15/22	$	10,159,000	$	10,171,699
Cablevision Systems Corp., Senior Unsecured Notes, 7.75%, due 4/15/18		915,000		1,038,525
CCO Holdings LLC, Guaranteed Notes, 5.25%, due 9/30/22		7,305,000		6,866,700
CCO Holdings LLC, Guaranteed Notes, 6.63%, due 1/31/22		225,000		232,875
Clear Channel Worldwide Holdings, Inc., Guaranteed Notes, Ser. B, 7.63%, due 3/15/20		5,245,000		5,599,037
				23,908,836
Oil & Gas (2.2%)
Chesapeake Energy Corp., Guaranteed Notes, 6.13%, due 2/15/21		690,000		753,825
EXCO Resources, Inc., Guaranteed Notes, 7.50%, due 9/15/18		10,710,000		10,361,925
Forest Oil Corp., Guaranteed Notes, 7.25%, due 6/15/19		14,375,000		14,518,750
Plains Exploration & Production Co., Guaranteed Notes, 6.88%, due 2/15/23		200,000		221,500

	Principal Amount		Value†
Sand- Ridge Energy, Inc., Guaranteed Notes, 7.50%, due 3/15/21	$	9,135,000	$	9,683,100
SandRidge Energy, Inc., Guaranteed Notes, 8.75%, due 1/15/20		125,000		135,000
				35,674,100
Pipelines (0.8%)
KB Home, Guaranteed Notes, 7.00%, due 12/15/21		12,640,000		13,019,200
Retail (1.0%)
Best Buy Co., Inc., Senior Unsecured Notes, 5.50%, due 3/15/21		9,975,000		10,099,687
JC Penney Corp., Inc., Guaranteed Notes, 5.65%, due 6/1/20		8,386,000		6,258,052
JC Penney Corp., Inc., Guaranteed Notes, 5.75%, due 2/15/18		735,000		560,438
				16,918,177
Semiconductors (0.3%)
Advanced Micro Devices, Inc., Senior Unsecured Notes, 8.13%, due 12/15/17		4,405,000		4,614,238
Telecommunications (1.2%)
Frontier Communications Corp., Senior Unsecured Notes, 7.63%, due 4/15/24		1,700,000		1,793,500

See Notes to Schedule of Investments

	Principal Amount		Value†
Metro- PCS Wireless, Inc., Guaranteed Notes, 6.63%, due 11/15/20	$	4,910,000	$	5,192,325
Sprint Nextel Corp., Senior Unsecured Notes, 6.00%, due 11/15/22		12,655,000		12,465,175
				19,451,000
Transportation (0.3%)
Swift Services Holdings, Inc., Secured Notes, 10.00%, due 11/15/18		4,355,000		4,877,600
Total Corporate Debt Securities (Cost $224,819,699)				226,918,585
	Contracts
Purchased Options (0.2%)
SPDR S&P 500 ETF Trust, Put, November 2013 @ 153		3,700		18,500
SPDR S&P 500 ETF Trust, Put, December 2013 @ 164		3,750		303,750
SPDR S&P 500 ETF Trust, Put, December 2013 @ 165		2,500		250,000
SPDR S&P 500 ETF Trust, Put, January 2014 @ 168		12,000		2,388,000
Total Options (Cost $6,027,325)				2,960,250
	Number of Shares
Short-Term Investments (8.9%)
State Street Institutional Government Money Market Fund Institutional Class (Cost $147,978,056)		147,978,056		147,978,056	^ØØ

	Number of Shares			Value†
Total Long Positions (84.7%) (Cost $1,302,036,514)				$	1,402,704,012	^##
Cash, receivables and other assets, less liabilities (28.9%)					478,624,251	^‡‡±
Short Positions (see summary below) ((13.6)%)					(225,881,158	)
Total Net Assets (100.0%)				$	1,655,447,105
Short Positions ((13.6)%)
Common Stocks Sold Short (7.3%)^‡
Auto Components (0.4%)
Standard Motor Products, Inc.		(178,415	)		(6,451,486	)
Capital Markets (0.3%)
Cohen & Steers, Inc.		(86,101	)		(3,302,834	)
Franklin Resources, Inc.		(45,900	)		(2,472,174	)
					(5,775,008	)
Commercial Banks (0.3%)
First Horizon National Corp.		(419,900	)		(4,471,935	)
Communications Equipment (0.4%)
Motorola Solutions, Inc.		(111,100	)		(6,945,972	)
Electric Utilities (0.3%)
Southern Co.		(131,000	)		(5,359,210	)
Food & Staples Retailing (0.6%)
Sysco Corp.		(300,000	)		(9,702,000	)
Health Care Equipment & Supplies (0.0%)
ResMed, Inc.		(36	)		(1,863	)
Hotels, Restaurants & Leisure (0.6%)
Bloomin' Brands, Inc.		(232,900	)		(5,829,487	)*
Chuy's Holdings, Inc.		(93,593	)		(3,519,097	)*
					(9,348,584	)
Internet Software & Services (0.4%)
ValueClick, Inc.		(338,600	)		(6,504,506	)*
Multi-Utilities (0.5%)
PG&E Corp.		(196,500	)		(8,223,525	)

	Number of Shares			Value†
Multiline Retail (0.7%)
Family Dollar Stores, Inc.		(30,000	)	$	(2,066,400	)
Kohl's Corp.		(172,100	)		(9,775,280	)
					(11,841,680	)
Oil, Gas & Consumable Fuels (0.8%)
HollyFrontier Corp.		(91,500	)		(4,214,490	)
Marathon Petroleum Corp.		(124,000	)		(8,885,840	)
					(13,100,330	)
Professional Services (0.3%)
Dun & Bradstreet Corp.		(49,000	)		(5,330,710	)
Semiconductors & Semiconductor Equipment (0.8%)
Freescale Semiconductor Ltd.		(172,700	)		(2,666,488	)*
Lam Research Corp.		(79,000	)		(4,284,170	)*
Taiwan Semiconductor Manufacturing Co. Ltd. ADR		(80,900	)		(1,489,369	)
Xilinx, Inc.		(105,000	)		(4,769,100	)
					(13,209,127	)
Specialty Retail (0.9%)
Conn's, Inc.		(107,000	)		(6,467,080	)*
Sonic Automotive, Inc. Class A		(180,000	)		(4,010,400	)
Staples, Inc.		(265,000	)		(4,271,800	)
					(14,749,280	)
Total Common Stocks Sold Short (Proceeds $(117,133,171))					(121,015,216	)
Exchange Traded Funds Sold Short (6.3%)
Consumer Discretionary Select Sector SPDR Fund		(118,800	)		(7,533,108	)
Consumer Staples Select Sector SPDR Fund		(142,600	)		(6,039,110	)
Financial Select Sector SPDR Fund		(228,300	)		(4,693,848	)

See Notes to Schedule of Investments

	Number of Shares			Value†
iShares Core S&P Small-Cap ETF		(137,000	)	$	(14,167,170	)
iShares MSCI Australia ETF		(101,000	)		(2,693,670	)
iShares MSCI Brazil Capped ETF		(71,900	)		(3,605,785	)
iShares MSCI Emerging Markets ETF		(102,800	)		(4,364,888	)
iShares Russell 2000 ETF		(78,500	)		(8,574,555	)
iShares Russell Mid-Cap ETF		(220,000	)		(31,673,400	)
iShares U.S. Real Estate ETF		(66,700	)		(4,413,539	)
Market Vectors Semiconductor ETF		(95,700	)		(3,939,969	)
SPDR S&P Retail ETF		(85,000	)		(7,154,450	)
Utilities Select Sector SPDR Fund		(155,000	)		(6,012,450	)
Total Exchange Traded Funds Sold Short (Proceeds $(94,574,512))					(104,865,942	)
Total Short Positions (Proceeds $(211,707,683))					(225,881,158	)

See Notes to Schedule of Investments

Notes to Schedule of Investments

† In accordance with Accounting Standards Codification ("ASC") 820 "Fair Value Measurements and Disclosures" ("ASC 820"), all investments held by each of Neuberger Berman Dynamic Real Return Fund ("Dynamic Real Return"), Neuberger Berman Flexible Select Fund ("Flexible Select"), Neuberger Berman Global Allocation Fund ("Global Allocation") and Neuberger Berman Long Short Fund ("Long Short") (each individually a "Fund," and collectively, the "Funds") are carried at the value that Neuberger Berman Management LLC ("Management") believes a Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment under current market conditions. Various inputs, including the volume and level of activity for the asset or liability in the market, are considered in valuing the Funds' investments, some of which are discussed below. Significant management judgment may be necessary to value investments in accordance with ASC 820.

ASC 820 established a three-tier hierarchy of inputs to create a classification of value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.

• Level 1 – quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, amortized cost, etc.)

• Level 3 – significant unobservable inputs (including a Fund's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing an investment are not necessarily an indication of the risk associated with investing in those securities.

The value of the Funds' investments (long and short positions) in equity securities, exchange traded funds, purchased option contracts, written option contracts and closed-end funds, for which market quotations are readily available, is generally determined by Management by obtaining valuations from an independent pricing service based on the latest sale price quoted on a principal exchange or market for that security (Level 1 inputs). Securities traded primarily on the NASDAQ Stock Market are normally valued by a Fund at the NASDAQ Official Closing Price ("NOCP") provided by NASDAQ each business day. The NOCP is the most recently reported price as of 4:00:02 p.m., Eastern time, unless that price is outside the range of the "inside" bid and asked prices (i.e., the bid and asked prices that dealers quote to each other when trading for their own accounts); in that case, NASDAQ will adjust the price to equal the inside bid or asked price, whichever is closer. Because of delays in reporting trades, the NOCP may not be based on the price of the last trade to occur before the market closes. If there is no reported sale of a security on a particular day, the independent pricing service may value the security based on reported market quotations.

The value of the Funds' investments in debt securities is determined by Management primarily by obtaining valuations from independent pricing services based on readily available bid quotations, or if quotations are not available, by methods which include various considerations based on security type (generally Level 2 inputs). In addition to the consideration of yields or prices of securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions, the following is a description of other Level 2 inputs and related valuation techniques used by an independent pricing service to value certain types of debt securities of the Funds:

Corporate Debt Securities. Inputs used to value corporate debt securities generally include relative credit information, observed market movements, sector news, spread to the U.S. Treasury market, and other market information which may include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, benchmark securities, bids, offers, and reference data, such as market research publications, when available ("Other Market Information").

See Notes to Financial Statements

Notes to Schedule of Investments (cont'd)

U.S. Treasury Securities. Inputs used to value U.S. Treasury securities generally include quotes from several inter-dealer brokers and Other Market Information.

Sovereign Debt. Inputs used to value sovereign debt generally include dealer quotes, bond market activity, discounted cash flow models, and other relevant information such as credit spreads, benchmark curves and Other Market Information.

The value of financial futures contracts is determined by obtaining valuations from independent pricing services at the settlement price at the market close (Level 1 inputs).

The value of forward foreign currency contracts is determined by obtaining valuations from an independent pricing service based on actual traded currency rates on an independent pricing service's network, along with other traded and quoted currency rates provided to the pricing service by leading market participants (Level 2 inputs).

The value of total return swaps is determined by obtaining valuations from an independent pricing service using the underlying index and stated LIBOR ("London Interbank Offered Rate") rate (Level 2 inputs).

Management has developed a process to periodically review information provided by independent pricing services for all types of securities.

Investments in investment companies, with the exception of closed-end funds, are valued using the respective fund's daily calculated net asset value per share (Level 2 inputs).

If a valuation is not available from an independent pricing service, or if Management has reason to believe that the valuation received does not represent the amount a Fund might reasonably expect to receive on a current sale in an orderly transaction, the applicable Fund seeks to obtain quotations from principal market makers (generally considered Level 3 inputs). If such quotations are not readily available, the security is valued using methods the Neuberger Berman Alternative Funds' Board of Trustees (the "Board") has approved on the belief that they reflect fair value. Numerous factors may be considered when determining the fair value of a security based on Level 2 or 3 inputs, including available analyst, media or other reports, trading in futures or American Depositary Receipts ("ADRs") and whether the issuer of the security being fair valued has other securities outstanding.

The value of the Funds' investments in foreign securities is generally determined using the same valuation methods and inputs as other Fund investments, as discussed above. Foreign security prices expressed in local currency values are translated from the local currency into U.S. dollars using the exchange rate as of 4:00 p.m., Eastern time. The Board has approved the use of Interactive Data Pricing and Reference Data, Inc. ("Interactive") to evaluate the prices of foreign income securities as of the close of the New York Stock Exchange (the "NYSE"). Interactive utilizes benchmark spread and yield curves and evaluates available market activity from the local close to the close of the NYSE (Level 2 inputs) to assist in determining prices for certain foreign income securities. In the absence of precise information about the market values of these foreign securities as of the close of the NYSE, the Board has determined on the basis of available data that prices evaluated in this way are likely to be closer to the prices the Fund could realize on a current sale than are the prices of those securities established at the close of the foreign markets in which the securities primarily trade. The Board has also approved the use of Interactive to assist in determining the fair value of foreign equity securities when changes in the value of a certain index suggest that the closing prices on the foreign exchanges may no longer represent the amount that a Fund could expect to receive for those securities or on days when foreign markets are closed and U.S. markets are open. In each of these events, Interactive will provide adjusted prices for certain foreign equity securities using a statistical analysis of historical correlations of multiple factors (Level 2 inputs). In the absence of precise information about the market values of these foreign securities as of the close of the New York Stock Exchange, the Board has determined on the basis of available data that prices adjusted in this way are likely to be closer to the prices a fund could realize on a current sale than are the prices of those securities established at the close of the foreign markets in which the securities primarily trade.

See Notes to Financial Statements

Notes to Schedule of Investments (cont'd)

Fair value prices are necessarily estimates, and there is no assurance that such a price will be at or close to the price at which the security is next quoted or next trades.

The following is a summary, categorized by Level, of inputs used to value the Funds' investments as of October 31, 2013:

Asset Valuation Inputs
	Level 1		Level 2		Level 3		Total
Dynamic Real Return
Investments:
Common Stocks^	$	6,515,247	$	—	$	—	$	6,515,247
Government Securities^		—		2,184,286		—		2,184,286
U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government		—		1,714,363		—		1,714,363
Mutual Funds		—		5,333,309		—		5,333,309
Exchange Traded Funds		233,713		—		—		233,713
Short-Term Investments		—		127,327		—		127,327
Total Investments		6,748,960		9,359,285		—		16,108,245
Flexible Select
Investments:
Common Stocks^		75,265,327		—		—		75,265,327
Preferred Stocks^		177,576		—		—		177,576
Exchange Traded Funds		58,955		—		—		58,955
Mutual Funds		11,167		5,975,624		—		5,986,791
Short-Term Investments		—		5,875,649		—		5,875,649
Total Investments		75,513,025		11,851,273		—		87,364,298
Global Allocation
Investments:
Common Stocks^		10,840,682		—		—		10,840,682
Short-Term Investments		—		17,208,391		—		17,208,391
Total Long Positions		10,840,682		17,208,391		—		28,049,073
Long Short
Investments:
Common Stocks^		1,023,944,237		—		—		1,023,944,237
Preferred Stocks^		902,884		—		—		902,884
Corporate Debt Securities^		—		226,918,585		—		226,918,585
Purchased Options		2,960,250		—		—		2,960,250
Short-Term Investments		—		147,978,056		—		147,978,056
Total Long Positions		1,027,807,371		374,896,641		—		1,402,704,012

^ The Schedule of Investments provides information on the industry and/or country categorization for the portfolio.

See Notes to Financial Statements

Notes to Schedule of Investments (cont'd)

The following is a summary, categorized by Level, of inputs used to value the Funds' derivatives as of October 31, 2013:

Asset Valuation Inputs	Level 1		Level 2		Level 3		Total
Dynamic Real Return
Futures contracts (unrealized appreciation)	$	9,763	$	—	$	—	$	9,763
Total	$	9,763	$	—	$	—	$	9,763
Global Allocation
Forward contracts (unrealized appreciation)	$	—	$	8,225	$	—	$	8,225
Futures contracts (unrealized appreciation)		724,490		—		—		724,490
Total return swaps		—		527,596		—		527,596
Total	$	724,490	$	535,821	$	—	$	1,260,311

The following is a summary, categorized by Level, of inputs used to value the Funds' investments as of October 31, 2013:

Liability Valuation Inputs
	Level 1		Level 2		Level 3		Total
Global Allocation
Common Stocks Sold Short^	$	(10,084,725)	$	—	$	—	$	(10,084,725)
Total	$	(10,084,725)	$	—	$	—	$	(10,084,725)
Long Short
Common Stocks Sold Short^	$	(121,015,216)	$	—	$	—	$	(121,015,216)
Exchange Traded Funds Sold Short		(104,865,942)		—		—		(104,865,942)
Total	$	(225,881,158)	$	—	$	—	$	(225,881,158)

^ The Schedule of Investments provides information on the industry and/or country categorization for the portfolio.

	Level 1			Level 2			Level 3		Total
Dynamic Real Return
Futures contracts (unrealized depreciation)	$	(23,941	)	$	—		$	—	$	(23,941	)
Total	$	(23,941	)	$	—		$	—	$	(23,941	)
Global Allocation
Forward contracts (unrealized depreciation)	$	—		$	(3,565	)	$	—	$	(3,565	)
Futures contracts (unrealized depreciation)		(188,440	)		—			—		(188,440	)
Total	$	(188,440	)	$	(3,565	)	$	—	$	(192,005	)
Long Short
Futures contracts (unrealized depreciation)	$	(2,957,330	)	$	—		$	—	$	(2,957,330	)
Option contracts		(2,306,000	)		—			—		(2,306,000	)
Total	$	(5,263,330	)	$	—		$	—	$	(5,263,330	)

See Notes to Financial Statements

Notes to Schedule of Investments (cont'd)

The Funds had no transfers between Levels 1 and 2 during the period ended October 31, 2013.

## At October 31, 2013, selected fund information on a U.S. federal income tax basis was as follows:

	Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Net Unrealized Appreciation (Depreciation)
Dynamic Real Return	$	15,670,978	$	813,641	$	376,374	$	437,267
Flexible Select		83,586,313		4,367,149		589,164		3,777,985
Global Allocation		26,778,337		1,609,293		338,557		1,270,736
Long Short		1,303,568,469		119,893,097		20,757,554		99,135,543

* Security did not produce income during the last twelve months.

‡‡ At October 31, 2013, Long Short had outstanding call and put options written as follows:

Name of Issuer	Contracts		Exercise Price		Expiration Date	Market Value of Options
SPDR S&P 500 ETF Trust, Put		2,000		155	December 2013	$	(80,000	)
SPDR S&P 500 ETF Trust, Put		12,000		160	January 2014		(1,116,000	)
Vipshop Holdings Ltd. ADS, Call^@		1,000		60	November 2013		(1,110,000	)
						$	(2,306,000	)

@ This security is held in escrow by the custodian bank.

ñ Securities were purchased under Rule 144A of the Securities Act of 1933, as amended (the "1933 Act"), or are private placements and, unless registered under the 1933 Act or exempted from registration, may only be sold to qualified institutional investors. These securities have been deemed by the investment manager to be liquid. At October 31, 2013, these securities amounted to $12,384 or 0.1% of net assets for Dynamic Real Return.

È All or a portion of this security is on loan.

ØØ All or a portion of this security is segregated in connection with obligations for common stocks sold short and/or forward foreign currency contracts and/or total return swap contracts and/or financial futures contracts.

‡ At October 31, 2013, Global Allocation had deposited $10,321,344 in a segregated account to cover collateral requirements for borrowing in connection with securities sold short. This collateral is made up of the proceeds from the securities sold short and collateral received from security lending activities. At October 31, 2013, Long Short had deposited $249,155,574 in a segregated account to cover collateral requirements for borrowing in connection with securities sold short.

§ Affiliated issuer (see Note F of Notes to Financial Statements).

a Principal amount is stated in the currency in which security is denominated.

AUD = Australian Dollar

CAD = Canadian Dollar

EUR = Euro

GBP = Pound Sterling

NZD = New Zealand Dollar

SEK = Swedish Krona

± See Note A-14 in the Notes to Financial Statements for the Funds' open positions in derivatives at October 31, 2013.

See Notes to Financial Statements

Statements of Assets and Liabilities

Neuberger Berman Alternative Funds

	DYNAMIC REAL RETURN FUND			FLEXIBLE SELECT FUND			GLOBAL ALLOCATION FUND
	October 31, 2013			October 31, 2013			October 31, 2013
Assets
Investments in securities, at value*† (Notes A and F)— see Schedule of Investments:
Unaffiliated issuers	$	10,774,936		$	81,388,674		$	28,049,073
Affiliated issuers		5,333,309			5,975,624			—
		16,108,245			87,364,298			28,049,073
Cash		—			270			—
Foreign currency		18,064			38			174,969
Deposits with brokers for short sales (Note A-11)		—			—			10,321,344
Deposits with brokers for futures contracts (Note A-14)		31,076			—			1,153,918
Deposits with brokers for options purchased (Note A-14)		—			—			—
Dividends and interest receivable		36,100			74,879			12,799
Receivable for securities sold		—			161,955			—
Receivable for Fund shares sold		—			—			55,710
Receivable from Management—net (Note B)		—			14,425			6,786
Total return swaps, at value (Note A-14)		—			—			527,596
Cash collateral for securities loaned (Note A-12)		—			—			208,167
Receivable for variation margin (Note A-14)		2,182			—			—
Receivable for open forward foreign currency contracts (Note A-14)		—			—			8,225
Prepaid expenses and other assets		51,079			34,609			15,035
Total Assets		16,246,746			87,650,474			40,533,622
Liabilities
Investments sold short, at value (Note A) (proceeds $9,984,602 and $211,707,683, respectively)		—			—			10,084,725
Interest payable for short sales		—			—			11,661
Payable for collateral on securities loaned (Note A-12)		—			—			208,167
Payable to investment manager—net (Notes A & B)		5,949			42,615			16,930
Options contracts written, at value** (Note A-14)		—			—			—
Payable for securities purchased		22,727			104,768			—
Payable for Fund shares redeemed		—			—			55,423
Payable to administrator—net (Note B)		565			—			—
Payable to trustees		2,525			2,525			2,525
Payable for variation margin (Note A-14)		—			—			83,200
Payable for open forward foreign currency contracts (Note A-14)		—			—			3,565
Accrued expenses and other payables		72,660			59,502			102,633
Total Liabilities		104,426			209,410			10,568,829
Net Assets	$	16,142,320		$	87,441,064		$	29,964,793
Net Assets consist of:
Paid-in capital	$	15,742,141		$	83,583,731		$	27,143,469
Undistributed net investment income (loss)		157,407			134,668			1,798,541
Distributions in excess of net investment income		—			—			—
Accumulated net realized gains (losses) on investments		(123,556	)		(157,684	)		(1,308,159	)
Net unrealized appreciation (depreciation) in value of investments		366,328			3,880,349			2,330,942
Net Assets	$	16,142,320		$	87,441,064		$	29,964,793
Net Assets
Institutional Class		15,933,412			87,187,689			17,234,003
Class A		106,060			145,920			7,863,644
Class C		102,848			107,455			4,867,146

See Notes to Financial Statements

Statements of Assets and Liabilities (cont'd)

Neuberger Berman Alternative Funds (cont'd)

	DYNAMIC REAL RETURN FUND		FLEXIBLE SELECT FUND		GLOBAL ALLOCATION FUND
	October 31, 2013		October 31, 2013		October 31, 2013
Shares Outstanding ($.001 par value; unlimited shares authorized)
Institutional Class		1,534,272		8,076,561		1,482,214
Class A		10,246		13,536		679,907
Class C		10,000		10,000		425,782
Net Asset Value, offering and redemption price per share
Institutional Class	$	10.38	$	10.80	$	11.63
Net Asset Value and redemption price per share
Class A	$	10.35	$	10.78	$	11.57
Offering Price per share
Class A‡	$	10.98	$	11.44	$	12.28
Net Asset Value and offering price per share
Class C^	$	10.28	$	10.75	$	11.43
†Securities on loan, at value:
Unaffiliated issuers	$	—	$	—	$	199,214
*Cost of Investments
Unaffiliated issuers	$	10,357,591	$	77,515,700	$	26,687,133
Affiliated issuers		5,369,977		5,968,251		—
Total cost of investments	$	15,727,568	$	83,483,951	$	26,687,133
Total cost of foreign currency	$	18,225	$	39	$	174,192
**Premium received from options written	$	—	$	—	$	—

‡ On single retail sales of less than $50,000. On sales of $50,000 or more or in certain other circumstances described in the Fund's prospectus, offering price is reduced.

^ Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.

See Notes to Financial Statements

Statements of Assets and Liabilities (cont'd)

Neuberger Berman Alternative Funds

	LONG SHORT FUND
	October 31, 2013
Assets
Investments in securities, at value*† (Note A & F)—see Schedule of Investments:
Unaffiliated issuers	$	1,402,704,012
Affiliated issuers		—
		1,402,704,012
Cash		109,740
Foreign currency		—
Deposits with brokers for short sales (Note A-11)		249,155,574
Deposits with brokers for futures contracts (Note A-14)		5,430,040
Deposits with brokers for open option contracts (Note A-14)		234,150,000
Dividends and interest receivable		4,692,851
Receivable for securities sold		14,173,941
Receivable for Fund shares sold		13,326,830
Receivable from Management—net (Note B)		—
Total return swaps, at value (Note A-14)		—
Cash collateral for securities loaned (Note A-12)		—
Receivable for variation margin (Note A-14)		697,115
Receivable for open forward foreign currency contracts (Note A-14)		—
Prepaid expenses and other assets		53,494
Total Assets		1,924,493,597
Liabilities
Investments sold short, at value (Note A) (proceeds $9,984,602 and $211,707,683, respectively)		225,881,158
Interest payable for short sales		41,227
Payable for collateral on securities loaned (Note A-12)		—
Payable to investment manager—net (Notes A & B)		1,510,611
Options contracts written, at value** (Note A-14)		2,306,000
Payable for securities purchased		36,658,520
Payable for Fund shares redeemed		1,890,918
Payable to administrator—net (Note B)		444,539
Payable to trustees		2,525
Payable for variation margin (Note A-14)		—
Payable for open forward foreign currency contracts (Note A-14)		—
Accrued expenses and other payables		310,994
Total Liabilities		269,046,492
Net Assets	$	1,655,447,105
Net Assets consist of:
Paid-in capital	$	1,562,566,858
Undistributed net investment income (loss)		—
Distributions in excess of net investment income		(42,614	)
Accumulated net realized gains (losses) on investments		9,440,708
Net unrealized appreciation (depreciation) in value of investments		83,482,153
Net Assets	$	1,655,447,105
Net Assets
Institutional Class		1,038,235,934
Class A		502,063,979
Class C		115,147,192

See Notes to Financial Statements

Statements of Assets and Liabilities (cont'd)

Neuberger Berman Alternative Funds (cont'd)

	LONG SHORT FUND
	October 31, 2013
Shares Outstanding ($.001 par value; unlimited shares authorized)
Institutional Class		83,212,733
Class A		40,470,562
Class C		9,394,834
Net Asset Value, offering and redemption price per share
Institutional Class	$	12.48
Net Asset Value and redemption price per share
Class A	$	12.41
Offering Price per share
Class A‡	$	13.17
Net Asset Value and offering price per share
Class C^	$	12.26
†Securities on loan, at value:
Unaffiliated issuers	$	—
*Cost of Investments
Unaffiliated issuers	$	1,302,036,514
Affiliated issuers		—
Total cost of investments	$	1,302,036,514
Total cost of foreign currency	$	—
**Premium received from options written	$	2,251,460

‡ On single retail sales of less than $50,000. On sales of $50,000 or more or in certain other circumstances described in the Fund's prospectus, offering price is reduced.

^ Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.

See Notes to Financial Statements

Statements of Operations

Neuberger Berman Alternative Funds

	DYNAMIC REAL RETURN FUND			FLEXIBLE SELECT FUND			GLOBAL ALLOCATION FUND
	Period from December 19, 2012 (Commencement of Operations) to October 31, 2013			Period from May 31, 2013 (Commencement of Operations) to October 31, 2013			For the Year Ended October 31, 2013
Investment Income:
Income (Note A):
Dividend income—unaffiliated issuers	$	134,141		$	232,083		$	163,053
Dividend income—affiliated issuers (Note F)		112,148			35,807			—
Interest and other income—unaffiliated issuers		52,598			—			2,101
Income from securities loaned—net (Note A-12)		—			—			1,484
Foreign taxes withheld		(347	)		(1,885	)		(4,493	)
Total income	$	298,540		$	266,005		$	162,145
Expenses:
Investment management fees (Note B)		74,446			89,570			188,319
Administration fees (Note B)		6,872			8,957			15,983
Administration fees (Note B):
Institutional Class		10,147			13,345			13,014
Class A		179			114			16,242
Class C		179			86			8,114
Distribution fees (Note B):
Class A		224			143			20,303
Class C		893			431			40,572
Shareholder servicing agent fees:
Institutional Class		2,514			2,637			1,445
Class A		1,653			1,568			2,531
Class C		1,644			1,555			1,234
Organization expense (Note A-8)		212,980			87,078			—
Audit fees		43,800			25,500			64,200
Custodian and accounting fees		50,056			35,933			119,334
Insurance expense		312			—			1,437
Legal fees		64,382			37,994			115,779
Registration and filing fees		33,373			20,775			65,615
Shareholder reports		12,000			10,000			5,004
Repayment to Management of expenses previously assumed by Management (Note B)		—			—			—
Trustees' fees and expenses		34,504			12,003			45,241
Short sales expense (Note A-11)		—			—			200,841
Miscellaneous		3,907			1,244			9,207
Total expenses		554,065			348,933			934,415
Expenses reimbursed by Management (Note B)		(448,882	)		(221,357	)		(465,982	)
Investment management fees waived (Note A)		(25,313	)		(2,692	)		—
Expenses reduced by custodian fee expense offset arrangement (Note A-17)		—			—			(16	)
Total net expenses		79,870			124,884			468,417
Net investment income (loss)	$	218,670		$	141,121		$	(306,272	)

See Notes to Financial Statements

Statements of Operations (cont'd)

Neuberger Berman Alternative Funds (cont'd)

	DYNAMIC REAL RETURN FUND			FLEXIBLE SELECT FUND			GLOBAL ALLOCATION FUND
	Period from December 19, 2012 (Commencement of Operations) to October 31, 2013			Period from May 31, 2013 (Commencement of Operations) to October 31, 2013			For the Year Ended October 31, 2013
Realized and Unrealized Gain (Loss) on Investments (Note A):
Net realized gain (loss) on:
Sales of investment securities of unaffiliated issuers		(155,806	)		(154,702	)		1,113,331
Sales of investment securities of affiliated issuers		(32,681	)		(8,784	)		—
Sales of investment securities of unaffiliated issuers sold short		—			—			(294,133	)
Forward foreign currency contracts		—			—			(122,198	)
Foreign currency		(5,244	)		(982	)		9,256
Financial futures contracts		9,340			—			(1,343,311	)
Options written		—			—			—
Total return swap contracts		—			—			2,067,585
Change in net unrealized appreciation (depreciation) in value of:
Unaffiliated investment securities		417,345			3,872,974			1,323,211
Affiliated investment securities		(36,668	)		7,373			—
Unaffiliated investment securities sold short		—			—			(283,278	)
Forward foreign currency contracts		—			—			8,376
Foreign currency		(171	)		2			1,494
Financial futures contracts		(14,178	)		—			523,340
Options written		—			—			—
Total return swap contracts		—			—			612,628
Net gain (loss) on investments		181,937			3,715,881			3,616,301
Net increase (decrease) in net assets resulting from operations	$	400,607		$	3,857,002		$	3,310,029

See Notes to Financial Statements

Statements of Operations (cont'd)

Neuberger Berman Alternative Funds

	LONG SHORT FUND
	For the Year Ended October 31, 2013
Investment Income:
Income (Note A):
Dividend income—unaffiliated issuers	$	6,592,257
Dividend income—affiliated issuers (Note F)		—
Interest and other income—unaffiliated issuers		6,973,680
Income from securities loaned—net (Note A-12)		—
Foreign taxes withheld		(187,767	)
Total income	$	13,378,170
Expenses:
Investment management fees (Note B)		8,404,225
Administration fees (Note B)		434,354
Administration fees (Note B):
Institutional Class		411,790
Class A		437,817
Class C		94,940
Distribution fees (Note B):
Class A		547,271
Class C		474,700
Shareholder servicing agent fees:
Institutional Class		52,087
Class A		59,325
Class C		12,718
Organization expense (Note A-8)		—
Audit fees		29,750
Custodian and accounting fees		189,211
Insurance expense		12,866
Legal fees		109,036
Registration and filing fees		138,991
Shareholder reports		36,733
Repayment to Management of expenses previously assumed by Management (Note B)		323,680
Trustees' fees and expenses		45,241
Short sales expense (Note A-11)		2,048,013
Miscellaneous		25,550
Total expenses		13,888,298
Expenses reimbursed by Management (Note B)		—
Investment management fees waived (Note A)		—
Expenses reduced by custodian fee expense offset arrangement (Note A-17)		(48	)
Total net expenses		13,888,250
Net investment income (loss)	$	(510,080	)

See Notes to Financial Statements

Statements of Operations (cont'd)

Neuberger Berman Alternative Funds (cont'd)

	LONG SHORT FUND
	For the Year Ended October 31, 2013
Realized and Unrealized Gain (Loss) on Investments (Note A):
Net realized gain (loss) on:
Sales of investment securities of unaffiliated issuers		24,803,790
Sales of investment securities of affiliated issuers		—
Sales of investment securities of unaffiliated issuers sold short		(7,248,697	)
Forward foreign currency contracts		—
Foreign currency		(8,122	)
Financial futures contracts		(7,281,053	)
Options written		162,542
Total return swap contracts		—
Change in net unrealized appreciation (depreciation) in value of:
Unaffiliated investment securities		98,899,998
Affiliated investment securities		—
Unaffiliated investment securities sold short		(14,191,064	)
Forward foreign currency contracts		—
Foreign currency		(14	)
Financial futures contracts		(3,136,527	)
Options written		(54,540	)
Total return swap contracts		—
Net gain (loss) on investments		91,946,313
Net increase (decrease) in net assets resulting from operations	$	91,436,233

See Notes to Financial Statements

Statements of Changes in Net Assets

Neuberger Berman Alternative Funds

	DYNAMIC REAL RETURN FUND			FLEXIBLE SELECT FUND			GLOBAL ALLOCATION FUND
	Period from December 19, 2012 (Commencement of Operations) to October 31, 2013			Period from May 31, 2013 (Commencement of Operations) to October 31, 2013			Year Ended October 31, 2013			Year Ended October 31, 2012
Increase (Decrease) in Net Assets:
From Operations (Note A):
Net investment income (loss)	$	218,670		$	141,121		$	(306,272	)	$	(189,871	)
Net realized gain (loss) on investments		(184,391	)		(164,468	)		1,430,530			530,075
Change in net unrealized appreciation (depreciation) of investments		366,328			3,880,349			2,185,771			(189,034	)
Net increase (decrease) in net assets resulting from operations		400,607			3,857,002			3,310,029			151,170
Distributions to Shareholders From (Note A):
Net investment income:
Institutional Class		—			—			(158,784	)		(126,485	)
Class A		—			—			(62,020	)		(3,706	)
Class C		—			—			(11,158	)		(1,337	)
Net realized gain on investments:
Institutional Class		—			—			—			(426,028	)
Class A		—			—			—			(13,551	)
Class C		—			—			—			(5,721	)
Total distributions to shareholders		—			—			(231,962	)		(576,828	)
From Fund Share Transactions (Note D):
Proceeds from shares sold:
Institutional Class		17,050,189			85,284,877			10,290,119			15,325,607
Class A		102,500			135,504			8,890,938			9,666,922
Class C		103,500			100,000			2,951,761			2,100,306
Proceeds from reinvestment of dividends and distributions:
Institutional Class		—			—			157,181			552,345
Class A		—			—			51,292			17,256
Class C		—			—			10,926			7,058
Payments for shares redeemed:
Institutional Class		(1,511,161	)		(1,936,319	)		(3,857,972	)		(12,348,482	)
Class A		—			—			(5,368,301	)		(6,391,944	)
Class C		(3,315	)		—			(726,293	)		(9,541	)
Net increase (decrease) from Fund share transactions		15,741,713			83,584,062			12,399,651			8,919,527
Net Increase (Decrease) in Net Assets		16,142,320			87,441,064			15,477,718			8,493,869
Net Assets:
Beginning of year		—			—			14,487,075			5,993,206
End of year	$	16,142,320		$	87,441,064		$	29,964,793		$	14,487,075
Undistributed net investment income (loss) at end of year	$	157,407		$	134,668		$	1,798,541		$	307,037
Distributions in excess of net investment income at end of year	$	—		$	—		$	—		$	—

See Notes to Financial Statements

	LONG SHORT FUND
	Year Ended October 31, 2013			Period from December 29, 2011 (Commencement of Operations) to October 31, 2012
Increase (Decrease) in Net Assets:
From Operations (Note A):
Net investment income (loss)	$	(510,080	)	$	105,627
Net realized gain (loss) on investments		10,428,460			659,165
Change in net unrealized appreciation (depreciation) of investments		81,517,853			1,964,300
Net increase (decrease) in net assets resulting from operations		91,436,233			2,729,092
Distributions to Shareholders From (Note A):
Net investment income:
Institutional Class		(107,714	)		—
Class A		(36,085	)		—
Class C		(1,288	)		—
Net realized gain on investments:
Institutional Class		(787,269	)		—
Class A		(315,555	)		—
Class C		(37,516	)		—
Total distributions to shareholders		(1,285,427	)		—
From Fund Share Transactions (Note D):
Proceeds from shares sold:
Institutional Class		993,039,563			92,669,640
Class A		508,140,690			26,973,514
Class C		110,775,702			3,294,397
Proceeds from reinvestment of dividends and distributions:
Institutional Class		853,873			—
Class A		293,006			—
Class C		17,797			—
Payments for shares redeemed:
Institutional Class		(105,947,534	)		(2,540,314	)
Class A		(60,519,912	)		(161,483	)
Class C		(4,321,732	)		—
Net increase (decrease) from Fund share transactions		1,442,331,453			120,235,754
Net Increase (Decrease) in Net Assets		1,532,482,259			122,964,846
Net Assets:
Beginning of year		122,964,846			—
End of year	$	1,655,447,105		$	122,964,846
Undistributed net investment income (loss) at end of year	$	—		$	106,349
Distributions in excess of net investment income at end of year	$	(42,614	)	$	—

Notes to Financial Statements Alternative Funds

Note A—Summary of Significant Accounting Policies:

1 General: Neuberger Berman Alternative Funds (the "Trust") is a Delaware statutory trust organized pursuant to an Amended and Restated Trust Instrument dated October 14, 2010. The Trust is registered as an open-end management investment company under the Investment Company Act of 1940, as amended (the "1940 Act"), and its shares are registered under the Securities Act of 1933, as amended (the "1933 Act"). Each Fund is a separate operating series of the Trust. Global Allocation and Long Short are each non-diversified. Dynamic Real Return and Flexible Select are each diversified. Long Short had no operations until December 29, 2011, other than matters relating to its organization and its registration of shares under the 1933 Act. Dynamic Real Return had no operations until December 19, 2012, other than matters relating to its organization and its registration of shares under the 1933 Act. Flexible Select had no operations until May 31, 2013, other than matters relating to its organization and its registration of shares under the 1933 Act. Each Fund offers Institutional Class shares, Class A shares and Class C shares. The Board may establish additional series or classes of shares without the approval of shareholders.

The assets of each Fund belong only to that Fund, and the liabilities of each Fund are borne solely by that Fund and no other.

The preparation of financial statements in accordance with U.S. generally accepted accounting principles ("GAAP") requires Management to make estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates.

2 Portfolio valuation: Investment securities are valued as indicated in the notes following the Funds' Schedule of Investments.

3 Foreign currency translation: The accounting records of the Funds are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars using the exchange rate as of 4:00 p.m., Eastern time, to determine the value of investments, other assets and liabilities. Purchase and sale prices of securities, and income and expenses, are translated into U.S. dollars at the prevailing rate of exchange on the respective dates of such transactions. Net unrealized foreign currency gain (loss), if any, arises from changes in the value of assets and liabilities, other than investments in securities, as a result of changes in exchange rates and is stated separately in the Statements of Operations.

4 Securities transactions and investment income: Securities transactions are recorded on trade date for financial reporting purposes. Dividend income is recorded on the ex-dividend date or, for certain foreign dividends, as soon as the Fund becomes aware of the dividends. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, including accretion of discount on securities, accretion of original issue discount, where applicable, and accretion of discount on short-term investments, if any, is recorded on the accrual basis. Realized gains and losses from securities transactions and foreign currency transactions, if any, are recorded on the basis of identified cost and stated separately in the Statements of Operations.

5 Income tax information: Each Fund is treated as a separate entity for U.S. federal income tax purposes. It is the policy of each of Global Allocation and Long Short to continue to, and the intention of each of Dynamic Real Return and Flexible Select to, qualify for treatment as a regulated investment company by complying with the requirements of the U.S. Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its net investment income and net realized capital gains to its shareholders. To the extent a Fund distributes substantially all of its net investment income and net realized capital gains to shareholders, no federal income or excise tax provision is required.

The Funds have adopted the provisions of ASC 740 "Income Taxes" ("ASC 740"). ASC 740 sets forth a minimum threshold for financial statement recognition of a tax position taken, or expected to be taken, in a tax return. The Funds recognize interest and penalties, if any, related to unrecognized tax positions as an income tax expense in the Statements of Operations. As of October 31, 2013, the Funds did not have any unrecognized tax positions.

As determined on October 31, 2013, permanent differences resulting primarily from different book and tax accounting were reclassified at year end. Such differences may be attributed to one or more of the following: accounting for passive foreign investment company gains and losses, reclassification of gain or loss from certain closed futures contracts under IRC §988, foreign currency gains and losses, partnership basis adjustment, reclassification of partnership capital, non-deductible Rule 12b-1 fees, ordinary loss netting to reduce short term capital gains, return of capital distributions and the characterization of distributions from real estate investment trusts ("REITs"), rollforward of swap true-up from prior years, reclassification of short sale dividend expense, non-deductible excise taxes, tax treatment of deflation adjustments on U.S. Treasury Inflation Protected Bonds and income recognized on total return swaps. These reclassifications had no effect on net income, net asset value ("NAV") or NAV per share of each Fund. For the year ended October 31, 2013, the Funds recorded the following permanent reclassifications:

	Paid-in Capital			Undistributed Net Investment Income (Loss)			Accumulated Net Realized Gains (Losses) on Investments
Dynamic Real Return	$	428		$	(61,263	)	$	60,835
Flexible Select		(331	)		(6,453	)		6,784
Global Allocation		—			2,029,738			(2,029,738	)
Long Short		—			506,204			(506,204	)

For tax purposes, distributions of short-term gains are taxable to shareholders as ordinary income.

The tax character of distributions paid during the years ended October 31, 2013 and October 31, 2012 was as follows:

	Distributions Paid From:
	Ordinary Income						Tax-Exempt Income						Long-Term Capital Gain						Return of Capital						Total
	2013			2012			2013			2012			2013			2012			2013			2012			2013			2012
Dynamic Real Return	$	—	⁽²⁾	$	—		$	—	⁽²⁾	$	—		$	—	⁽²⁾	$	—		$	—	⁽²⁾	$	—		$	—	⁽²⁾	$	—
Flexible Select		—	⁽³⁾		—			—	⁽³⁾		—			—	⁽³⁾		—			—	⁽³⁾		—			—	⁽³⁾		—
Global Allocation		231,962			561,328			—			—			—			15,500			—			—			231,962			576,828
Long Short		1,285,427			—	⁽¹⁾		—			—	⁽¹⁾		—			—	⁽¹⁾		—			—	⁽¹⁾		1,285,427			—	⁽¹⁾

(1) Period from December 29, 2011 (Commencement of Operations) to October 31, 2012.

(2) Period from December 19, 2012 (Commencement of Operations) to October 31, 2013.

(3) Period from May 31, 2013 (Commencement of Operations) to October 31, 2013.

As of October 31, 2013, the components of distributable earnings (accumulated losses) on a U.S. federal income tax basis were as follows:

	Undistributed Ordinary Income		Undistributed Long-Term Gain		Unrealized Appreciation (Depreciation)		Loss Carryforwards and Deferrals			Other Temporary Differences			Total
Dynamic Real Return	$	158,581	$	—	$	416,627	$	(175,029	)	$	—		$	400,179
Flexible Select		160,825		—		3,777,987		(55,388	)		(26,091	)		3,857,333
Global Allocation		2,427,035		—		1,671,533		(738,607	)		(538,637	)		2,821,324
Long Short		8,015,333		—		84,907,528		—			(42,614	)		92,880,247

The differences between book basis and tax basis distributable earnings are primarily due to: timing differences of wash sales, organizational expenses, open return of capital basis adjustments, partnership basis adjustments, REIT basis adjustments, passive losses from partnership investments, mark to market on certain forward contracts and futures contract transactions, mark to market on certain swap contract transactions, short sales settlement date loss deferral, deferral of current and prior year IRC §1092 straddle losses, tax treatment of deflation adjustments on U.S. Treasury Inflation Protected Bonds and accrued but unrecognized income on total return swaps.

To the extent the Funds' net realized capital gains, if any, can be offset by capital loss carryforwards, it is the policy of the Fund not to distribute such gains. For taxable years beginning after December 22, 2010, the capital loss carryforward rules allow for regulated investment companies to carry forward capital losses indefinitely and to retain the character of capital loss carryforwards as short-term or long-term. As determined at October 31, 2013, the Funds had unused capital loss carryforwards available for federal income tax purposes to offset net realized capital gains, if any, as follows:

	Post-Enactment (No Expiration Date)
	Long-Term		Short-Term
Dynamic Real Return	$	—	$	175,029
Flexible Select		—		55,388
Global Allocation		104,885		633,722

6 Foreign taxes: Foreign taxes, if any, withheld represent amounts withheld by foreign tax authorities, net of refunds recoverable.

7 Distributions to shareholders: Each Fund may earn income, net of expenses, daily on its investments. Distributions from net investment income and net realized capital gains, if any, generally are distributed once a year (usually in December) and are recorded on the ex-date.

8 Organization expenses: Costs incurred by each of Dynamic Real Return and Flexible Select in connection with its organization, which amounted to $212,980 and $87,078, respectively, which is reflected in Organization expense in the Statements of Operations, have been expensed as incurred.

9 Expense allocation: Certain expenses are applicable to multiple funds. Expenses directly attributable to a Fund are charged to that Fund. Expenses of the Trust that are not directly attributable to a particular series of the Trust (e.g., a Fund) are allocated among the series of the Trust, on the basis of relative net assets, except where a more appropriate allocation of expenses to each of the series can otherwise be made fairly. Expenses borne by the complex of related investment companies, which includes open-end and closed-end investment companies for which Management serves as investment manager, that are not directly attributable to a particular investment company in the complex (e.g., the Trust) or series thereof are allocated among the investment companies in the complex or series thereof, on the basis of relative net assets, except where a more appropriate allocation of expenses to each of the investment companies in the complex or series thereof can otherwise be made fairly. Each Fund's expenses (other than those specific to each class) are allocated proportionally each day among the classes based upon the relative net assets of each class.

10 Investments in foreign securities: Investing in foreign securities may involve certain sovereign and other risks, in addition to the credit and market risks normally associated with domestic securities. These additional risks include the possibility of adverse political and economic developments (including political instability, nationalization, expropriation, or confiscatory taxation) and the potentially adverse effects of unavailability of public information regarding issuers, less governmental supervision and regulation of financial markets, reduced liquidity of certain financial markets, and the lack of uniform accounting, auditing, and financial reporting standards or the application of standards that are different or less stringent than those applied in the United States. Foreign securities also may experience greater price volatility, higher rates of inflation, and delays in settlement.

11 Securities sold short: Each Fund may engage in short sales, which are sales of securities which have been borrowed from a third party on the expectation that the market price will decline. If the price of the securities decreases, a Fund will make a profit by purchasing the securities in the open market at a price lower than the one at which it sold the securities. If the price of the securities increases, a Fund may have to cover its short positions at a price higher than the short sale price, resulting in a loss. Gains are limited to the price at which a Fund sold the security short, while losses are potentially unlimited in size. The Funds pledge securities and/or other assets, which may include cash collateral from securities lending activities, to the lender as collateral. Proceeds received from short sales may be maintained by the lender as collateral or may be released to the Funds and used to purchase additional securities or for any other purpose. Proceeds maintained by the lender are included in the "Deposit with brokers for short sales" on the Statements of Assets and Liabilities. The Funds are required to segregate an amount of cash, cash equivalents or other appropriate liquid marketable securities with the custodian in at least an amount equal to the current market value of the securities sold short (less any additional collateral held by the lender) and, for Global Allocation, the amount of any securities lending cash collateral used to finance short sales until the Fund replaces a borrowed security. The Funds are contractually responsible to the lender for any dividends payable on securities while those securities are in a short position. These dividends are recorded as an expense of the Funds and are excluded from the contractual expense limitation. As of October 31, 2013, Global Allocation had pledged cash in the amount of $10,321,344 to State Street Bank and Trust Company ("State Street"), as collateral for short sales, in addition to cash collateral received from securities lending activities for the Fund. In addition, State Street has a perfected security interest in these Global Allocation assets. At October 31, 2013, Long Short had pledged cash in the amount of $249,155,574 to State Street to cover collateral requirements for borrowing in connection with securities sold short.

12 Security lending: Each of Global Allocation and Long Short, using State Street as its lending agent, may loan securities to qualified brokers and dealers in exchange for negotiated lender's fees. These fees disclosed within the Statements of Operations under the caption, "Income from securities loaned-net" are net of expenses retained by State Street as compensation for its services as lending agent. For the year ended October 31, 2013, Global Allocation received net income under the securities lending arrangement of $1,484. The Funds receive cash collateral at the beginning of each transaction equal to at least 102% of the prior day's market value of the loaned securities (105% in the case of international securities). Some or all of the cash collateral may be used to finance short sales. As of October 31, 2013, approximately 100% of the cash collateral received by Global Allocation was used to finance short sales.

As of October 31, 2013, Global Allocation had outstanding loans of securities to certain approved brokers for which it received collateral as follows:

				Value of Loaned Securities				Value of Collateral
Global Allocation				$	199,214			$	208,167

13 Investment company securities and exchange-traded funds: The Funds invest in shares of other registered investment companies, including exchange-traded funds ("ETFs"), within the limitations prescribed by the 1940 Act or pursuant to an exemptive order from the Securities and Exchange Commission ("SEC") that permits the Funds to invest in both affiliated and unaffiliated investment companies, including exchange-traded funds, in excess of the limits in Section 12(d)(1)(A) of the 1940 Act, as amended, subject to the terms and conditions of such

order (see Note A-16 for more information about the exemptive order). Some ETFs seek to track the performance of a particular market index. These indices include both broad-based market indices and more narrowly-based indices, including those relating to particular sectors, markets, regions or industries. However, some ETFs have an actively-managed investment objective. ETF shares are traded like traditional equity securities on a national securities exchange or NASDAQ. A Fund will indirectly bear its proportionate share of any management fees and other expenses paid by such other investment companies, which will increase expenses and decrease returns.

14 Derivative instruments: During the year ended October 31, 2013, the Funds' use of derivatives, as described below for each Fund, except for Flexible Select, was limited to total return swaps, financial futures contracts, forward foreign currency contracts, and written and purchased option transactions. The Funds have adopted the provisions of ASC 815 "Derivatives and Hedging" ("ASC 815"). The disclosure requirements of ASC 815 distinguish between derivatives that qualify for hedge accounting and those that do not. Because investment companies value their derivatives at fair value and recognize changes in fair value through the Statements of Operations, they do not qualify for hedge accounting. Accordingly, even though a Fund's investments in derivatives may represent economic hedges, they are considered non-hedge transactions for purposes of this disclosure.

Total return swap contracts: During the year ended October 31, 2013, Global Allocation used total return swaps to provide investment exposure to the benchmark indices. Total return swaps involve commitments to pay fixed or floating rate interest in exchange for a market-linked return based on a notional amount. To the extent the total return of the reference security or index underlying the total return swap exceeds or falls short of the offsetting interest rate obligation, a Fund will receive a payment or make a payment to the counterparty, respectively. Certain risks may arise when entering into swap transactions, including counterparty default, liquidity or unfavorable changes in the value of the underlying reference security or index. The value of the swap is adjusted daily and the change in value, if any, is recorded as unrealized appreciation or depreciation in the Statements of Assets and Liabilities. Payments received or made at the end of each measurement period are recorded as realized gain or loss in the Statements of Operations.

At October 31, 2013, the outstanding total return swap contracts for Global Allocation were as follows:

				Rate Type
Swap Counterparty	Notional Amount⁽¹⁾		Termination Date	Variable-rate Payments Made/ (Received) by the Fund			Reference Entity	Accrued Net Interest Receivable (Payable)			Unrealized Appreciation (Depreciation)		Total Fair Value
J.P. Morgan	$	7,840,514	January 7, 2014		.763	%⁽²⁾	J.P. Morgan Global Government Bond Total Return Index Unhedged	$	(3,826	)	$	32,235	$	28,409
J.P. Morgan		13,415,831	January 15, 2014		(0.015	%)⁽³⁾	MSCI Daily Total Return Net World Index		87			499,100		499,187
Total								$	(3,739	)	$	531,335	$	527,596

(1) The notional amount at period end is indicative of the volume throughout the period.

(2) 1 month LIBOR plus .59% at October 7, 2013.

(3) 1 month LIBOR minus .19% at October 14, 2013.

Financial futures contracts: During the period ended October 31, 2013, Dynamic Real Return entered into financial futures contracts for economic hedging purposes, including as a maturity or duration management device. During the year ended October 31, 2013, Global Allocation entered into financial futures contracts in an effort to enhance returns and to manage or adjust the risk profile and the investment exposure of the Fund to certain asset classes, countries and regions, including adjusting the investment exposures provided by the Fund's

total return swaps, described above, to the benchmark indices. In addition, the Fund also utilized financial futures contracts to provide investment exposure to certain indices and markets other than the benchmark indices. In addition, Global Allocation utilized financial futures contracts to provide investment exposure to certain indices and markets other than the benchmark indices. During the year ended October 31, 2013, Long Short entered into financial futures contracts on the broader market index and U.S. Treasuries in an effort either to enhance returns or to manage or adjust the risk profile and the investment exposure of the Fund.

At the time a Fund enters into a financial futures contract, it is required to deposit with the futures commission merchant a specified amount of cash or liquid securities, known as "initial margin," which is a percentage of the value of the financial futures contract being traded that is set by the exchange upon which the futures contract is traded. Each day, the futures contract is valued at the official settlement price of the board of trade or U.S. commodity exchange on which such futures contract is traded. Subsequent payments, known as "variation margin," to and from the broker are made on a daily basis as the market price of the financial futures contract fluctuates. Daily variation margin adjustments, arising from this "mark to market," are recorded by a Fund as unrealized gains or losses.

Although some financial futures contracts by their terms call for actual delivery or acquisition of the underlying securities or currency, in most cases the contracts are closed out prior to delivery by offsetting purchases or sales of matching financial futures contracts. When the contracts are closed, a Fund recognizes a gain or loss. Risks of entering into futures contracts include the possibility there may be an illiquid market, possibly at a time of rapidly declining prices, and/or a change in the value of the contract may not correlate with changes in the value of the underlying securities. Futures executed on regulated futures exchanges have minimal counterparty risk to a fund because the exchange's clearinghouse assumes the position of the counterparty in each transaction. Thus, a Fund is exposed to risk only in connection with the clearinghouse and not in connection with the original counterparty to the transaction.

For U.S. federal income tax purposes, the futures transactions undertaken by a Fund may cause that Fund to recognize gains or losses from marking contracts to market even though its positions have not been sold or terminated, may affect the character of the gains or losses recognized as long-term or short-term, and may affect the timing of some capital gains and losses realized by the Fund. Also, a Fund's losses on transactions involving futures contracts may be deferred rather than being taken into account currently in calculating such Fund's taxable income.

At October 31, 2013, open positions in financial futures contracts were:

Fund

Expiration

Open Contracts

Position

Unrealized
Appreciation
(Depreciation)

Dynamic Real Return

December 2013

2 Australian Dollar/US Dollar Currency

Short

(3,086

)

Dynamic Real Return

December 2013

1 Euro Currency

Short

(3,828

)

Dynamic Real Return

December 2013

1 German Euro Bond

Short

(6,030

)

Dynamic Real Return

December 2013

2 New Zealand Dollar

Short

(2,723

)

Dynamic Real Return

December 2013

3 Ultra Long US Treasury Bond

Short

(6,195

)

Dynamic Real Return

December 2013

1 US Treasury Note, 2 Year

Short

(806

)

Dynamic Real Return

December 2013

2 Canadian Currency

Long

(1,131

)

Dynamic Real Return

December 2013

4 GBP Currency

Long

8,163

Dynamic Real Return

September 2015

1 Canada Bankers Acceptance, 3 Month

Long

550

Dynamic Real Return

December 2016

1Eurodollar, 90 Day

Long

1,050

Dynamic Real Return

December 2016

2 Sterling Interest Rate, 3 Month

Long

(142

)

Total

(14,178

)

Fund

Expiration

Open Contracts

Position

Unrealized
Appreciation
(Depreciation)

Global Allocation

December 2013

1 Australian Treasury Bond, 10 Year

Short

(1,268

)

Global Allocation

December 2013

19 Mini Japanese Government Bond, 10 Year

Short

(39,312

)

Global Allocation

December 2013

9 Australian Dollar/US Dollar Currency

Short

(14,102

)

Global Allocation

December 2013

8 Canadian Currency

Short

6,699

Global Allocation

December 2013

21 Euro STOXX 50 Index

Short

(40,597

)

Global Allocation

December 2013

6 German Euro-Bond

Short

(24,194

)

Global Allocation

December 2013

8 Japanese Yen

Short

(16,221

)

Global Allocation

December 2013

27 Mini MSCI Emerging Markets Index

Short

(27,219

)

Global Allocation

December 2013

3 S&P TSX 60 Index

Short

(22,136

)

Global Allocation

November 2013

4 Hang Seng Index Future

Long

8,645

Global Allocation

December 2013

21 Government of Canada Bond, 10 Year

Long

33,950

Global Allocation

December 2013

9 Mini Japanese Government Bond, 10 Year

Long

18,539

Global Allocation

December 2013

3 Australian Dollar

Long

4,672

Global Allocation

December 2013

11 GBP Currency

Long

13,536

Global Allocation

December 2013

4 Canadian Dollar

Long

(3,391

)

Global Allocation

December 2013

1 CHF Currency

Long

3,597

Global Allocation

December 2013

17 Euro Currency

Long

58,937

Global Allocation

December 2013

23 Euro STOXX 50 Index

Long

56,782

Global Allocation

December 2013

17 FTSE 100 Index

Long

31,584

Global Allocation

December 2013

6 German Euro Bond

Long

33,551

Global Allocation

December 2013

15 Japanese Yen

Long

30,242

Global Allocation

December 2013

14 UK Long Gilt Bond

Long

59,639

Global Allocation

December 2013

2 S&P TSX 60 Index

Long

14,744

Global Allocation

December 2013

65 S&P 500 E-Mini Index

Long

223,524

Global Allocation

December 2013

3 SPI 200 Index

Long

12,041

Global Allocation

December 2013

11 Topix Index

Long

6,161

Global Allocation

December 2013

29 US Treasury Note, 10 Year

Long

107,647

Total

536,050

Long Short

December 2013

1,204 S&P 500 E-Mini Index

Short

(2,947,094

)

Long Short

December 2013

160 US Treasury Note, 10 Year

Short

(10,236

)

Total

(2,957,330

)

During the period ended October 31, 2013, the average notional value of financial futures contracts was:

	Long positions		Short positions
Dynamic Real Return	$	746,989	$	(570,858	)
Global Allocation	$	34,885,536	$	(20,519,704	)
Long Short	$	2,425,370	$	(66,479,586	)

At October 31, 2013, the notional value of financial futures contracts was:

	Long positions		Short positions
Dynamic Real Return	$	1,465,706	$	(1,368,804	)
Global Allocation	$	29,117,732	$	(9,397,235	)
Long Short	$	—	$	(125,787,700	)

At October 31, 2013, the Funds had deposited the following in segregated accounts to cover margin requirements on open futures contracts:

Dynamic Real Return	$	31,076
Global Allocation	$	1,153,918
Long Short	$	5,430,040

Forward foreign currency contracts: During the year ended October 31, 2013, Global Allocation entered into forward foreign currency contracts to manage or adjust the risk profile and investment exposure of the Fund, including altering investment exposures to certain currencies provided by the Fund's total return swaps, described above.

A forward contract is an agreement between two parties to buy or sell a specific currency for another at a set price on a future date, which is individually negotiated and privately traded by currency traders and their customers in the interbank market. The market value of a forward contract fluctuates with changes in forward currency exchange rates. Forward contracts are marked to market daily, and the change in value is recorded by the Fund as an unrealized gain or loss. At the consummation of a forward contract to purchase or sell currency, a Fund may either exchange the currencies specified at the maturity of a forward contract or enter into a closing transaction involving the purchase or sale of an offsetting forward contract. Closing transactions with respect to forward contracts are usually performed with the counterparty to the original forward contract. The gain or loss arising from the difference between the US dollar cost of the original contract and the value of the foreign currency in US dollars upon closing a contract is included in "Net realized gain (loss) from forward foreign currency contracts" in the Statements of Operations. These contracts may involve market risk in excess of the unrealized gain or loss reflected in a Fund's Statement of Assets and Liabilities. In addition, a Fund could be exposed to risk if the counterparties are unable to meet the terms of the contracts or if the value of the currency changes unfavorably to the US dollar.

At October 31, 2013, open forward contracts for Global Allocation were as follows:

Contracts to Receive			In Exchange For		Counterparty	Settlement Date	Value		Net Unrealized Appreciation (Depreciation)
	1,218,073,869	Indonesian Rupiah	$	106,317	J.P. Morgan	11/14/13	$	107,877	$	1,560
	110,433,513	South Korean Won		102,662	J.P. Morgan	11/14/13		104,032		1,370
	590,899	Polish Zloty		190,042	J.P. Morgan	11/14/13		191,720		1,678
	10,441,965	New Taiwan Dollar		354,169	J.P. Morgan	11/14/13		355,493		1,324

Total

5,932

Contracts to Deliver			In Exchange For		Counterparty	Settlement Date	Value		Net Unrealized Appreciation (Depreciation)
	322,741	Brazilian Real	$	145,189	J.P. Morgan	11/14/13	$	143,719	$	1,470
	23,280,304	Chilean Peso		46,181	J.P. Morgan	11/14/13		45,383		798
	56,337	Czech Koruna		2,990	J.P. Morgan	11/14/13		2,965		25
	35,330,208	Hungarian Forint		161,469	J.P. Morgan	11/14/13		162,176		(707	)
	1,643,674	Mexican Peso		124,590	J.P. Morgan	11/14/13		125,879		(1,289	)
	290,653	Singapore Dollar		232,569	J.P. Morgan	11/14/13		233,984		(1,415	)
	405,689	South African Rand		40,201	J.P. Morgan	11/14/13		40,355		(154	)

Total

(1,272

)

For the year ended October 31, 2013, Global Allocation's investment in forward contracts had an average value of $3,638,216.

Options: Premiums received by a Fund upon writing a covered call option or a put option are recorded in the liability section of the Fund's Statement of Assets and Liabilities and are subsequently adjusted to the current market value. When an option is exercised, closed, or expired, the Fund realizes a gain or loss and the liability is eliminated.

When writing a covered call option, a Fund, in return for the premium, gives up the opportunity for profit from a price increase in the underlying security above the exercise price, but conversely retains the risk of loss should the price of the security decline. When writing a put option, the Fund, in return for the premium, takes the risk that it must purchase the underlying security at a price that may be higher than the current market price of the security. If a covered call or a put option that the Fund has written expires unexercised, the Fund will realize a gain in the amount of the premium. All securities covering outstanding written options are held in escrow by the custodian bank.

Written option transactions were used in an attempt to generate incremental returns for Long Short for the year ended October 31, 2013. Written options transactions for the year ended October 31, 2013 were:

Long Short

	Number			Value When Written
Contracts outstanding 10/31/2012		—		$	—
Contracts written		17,750			2,733,377
Contracts expired		—			—
Contracts exercised		—			—
Contracts closed		(2,750	)		(481,917	)
Contracts outstanding 10/31/2013		15,000		$	2,251,460

Premiums paid by a Fund upon purchasing a call or put option are recorded in the asset section of the Fund's Statement of Assets and Liabilities and are subsequently adjusted to the current market value. When an option is exercised, closed, or expired, the Fund realizes a gain or loss and the asset is eliminated.

For purchased call options, a Fund's loss is limited to the amount of the option premium paid.

Purchased option transactions were used either for hedging purposes or in an attempt to generate incremental returns for Long Short for the year ended October 31, 2013. Purchased option transactions for Long Short for the year ended October 31, 2013 were:

Long Short

	Number			Value When Purchased
Contracts outstanding 10/31/2012		100		$	21,650
Contracts purchased		35,505			7,651,849
Contracts expired		(12,680	)		(1,584,201	)
Contracts exercised		(250	)		(15,606	)
Contracts closed		(725	)		(46,367	)
Contracts outstanding 10/31/2013		21,950		$	6,027,325

For the year ended October 31, 2013, Long Short had an average market value of $661,177 in purchased options and $(277,692) in written options.

At October 31, 2013, the Funds (except Flexible Select) had the following derivatives (which did not qualify as hedging instruments under ASC 815), grouped by primary risk exposure:

	Asset Derivatives
Derivative Type	Statements of Assets and Liabilities Location	Interest Rate Risk			Currency Risk			Equity Risk			Total
Dynamic Real Return
Futures contracts	Receivable/Payable for variation margin⁽²⁾	$	1,600		$	8,163		$	—		$	9,763
Total Value—Assets		$	1,600		$	8,163		$	—		$	9,763
Global Allocation
Swap contracts	Total return swaps, at value⁽¹⁾	$	—		$	—		$	527,596		$	527,596
Futures contracts	Receivable/Payable for variation margin⁽²⁾		253,326			117,682			353,482			724,490
Forward contracts	Receivable for open forward foreign currency contracts		—			8,225			—			8,225
Total Value—Assets		$	253,326		$	125,907		$	881,078		$	1,260,311
Long Short
Option contracts purchased	Investments in securities, at value	$	—		$	—		$	2,960,250		$	2,960,250
Total Value—Assets		$	—		$	—		$	2,960,250		$	2,960,250
	Liability Derivatives
Derivative Type	Statements of Assets and Liabilities Location	Interest Rate Risk			Currency Risk			Equity Risk			Total
Dynamic Real Return
Futures contracts	Receivable/Payable for variation margin⁽²⁾	$	(13,173	)	$	(10,768	)	$	—		$	(23,941	)
Total Value—Liabilities		$	(13,173	)	$	(10,768	)	$	—		$	(23,941	)
Global Allocation
Swap contracts	Total return swaps, at value⁽¹⁾	$	—		$	—		$			$	—
Futures contracts	Receivable/Payable for variation margin⁽²⁾		(64,773	)		(33,714	)		(89,953	)		(188,440	)
Forward contracts	Payable for open forward foreign currency contracts		—			(3,565	)		—			(3,565	)
Total Value—Liabilities		$	(64,773	)	$	(37,279	)	$	(89,953	)	$	(192,005	)

Derivative Type	Statements of Assets and Liabilities Location	Interest Rate Risk			Currency Risk		Equity Risk			Total
Long Short
Futures contracts	Receivable/Payable for variation margin⁽²⁾	$	(10,236	)	$	—	$	(2,947,094	)	$	(2,957,330	)
Option contracts written	Option contracts written, at value		—			—		(2,306,000	)		(2,306,000	)
Total Value—Liabilities		$	(10,236	)	$	—	$	(5,253,094	)	$	(5,263,330	)

(1) "Swap contracts" reflects the appreciation (depreciation) of the total return swap contracts plus accrued interest as of October 31, 2013, which is reflected in the Statements of Assets and Liabilities under the caption "Total return swaps, at value."

(2) "Futures contracts" reflects the cumulative appreciation (depreciation) of futures contracts as of October 31, 2013, which is reflected in the Statements of Assets and Liabilities under the caption "Net unrealized appreciation (depreciation) in value of investments." The outstanding variation margin as of October 31, 2013, if any, is reflected in the Statements of Assets and Liabilities under the caption "Receivable/Payable for variation margin."

The impact of the use of these derivative instruments on the Statements of Operations during the year ended October 31, 2013, was as follows:

Realized Gain (Loss)
Derivative Type	Statements of Operations Location	Rate Risk			Currency Risk			Equity Risk			Total
Dynamic Real Return
Futures contracts	Net realized gain (loss) on: financial futures contracts	$	(7,474	)	$	16,814		$	—		$	9,340
Total Realized Gain (Loss)		$	(7,474	)	$	16,814		$	—		$	9,340
Global Allocation
Swap contracts	Net realized gain (loss) on: total return swap contracts	$	—		$	—		$	2,067,585		$	2,067,585
Futures contracts	Net realized gain (loss) on: financial futures contracts		(1,207,525	)		(439,240	)		303,454			(1,343,311	)
Forward contracts	Net realized gain (loss) on: forward foreign currency contracts		—			(122,198	)		—			(122,198	)
Total Realized Gain (Loss)		$	(1,207,525	)	$	(561,438	)	$	2,371,039		$	602,076
Long Short
Futures contracts	Net realized gain (loss) on: financial futures contracts	$	1,265,212		$	—		$	(8,546,265	)	$	(7,281,053	)
Option contracts purchased	Net realized gain (loss) on: sales of investment securities of unaffiliated issuers		—			—			(1,537,532	)		(1,537,532	)
Option contracts written	Net realized gain (loss) on: options written		—			—			162,542			162,542
Total Realized Gain (Loss)		$	1,265,212		$	—		$	(9,921,255	)	$	(8,656,043	)

Change in Appreciation (Depreciation)
Derivative Type	Statements of Operations Location	Interest Rate Risk			Currency Risk			Equity Risk			Total
Dynamic Real Return
Futures contracts	Change in net unrealized appreciation (depreciation) in value of: financial futures contracts	$	(11,574	)	$	(2,604	)	$	—		$	(14,178	)
Total Change in Appreciation (Depreciation)		$	(11,574	)	$	(2,604	)	$	—		$	(14,178	)
Global Allocation
Swap contracts	Change in net unrealized appreciation (depreciation) in value of: total return swap contracts	$	—		$	—		$	612,628		$	612,628
Futures contracts	Change in net unrealized appreciation (depreciation) in value of: financial futures contracts		201,150			47,955			274,235			523,340
Forward contracts	Change in net unrealized appreciation (depreciation) in value of: forward foreign currency contracts		8,376			—			—			8,376
Total Change in Appreciation (Depreciation)		$	209,526		$	47,955		$	886,863		$	1,144,344
Long Short
Futures contracts	Change in net unrealized appreciation (depreciation) in value of: financial futures contracts	$	(10,236	)	$	—		$	(3,126,291	)	$	(3,136,527	)
Option contracts purchased	Change in net unrealized appreciation (depreciation) in value of: unaffiliated investment securities		—			—			(3,069,975	)		(3,069,975	)
Option contracts written	Change in net unrealized appreciation (depreciation) in value of: options written		—			—			(54,540	)		(54,540	)
Total Change in Appreciation (Depreciation)		$	(10,236	)	$	—		$	(6,250,806	)	$	(6,261,042	)

15 Indemnifications: Like many other companies, the Trust's organizational documents provide that its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, both in some of its principal service contracts and in the normal course of its business, the Trust enters into contracts that provide indemnifications to other parties for certain types of losses or liabilities. The Trust's maximum exposure under these arrangements is unknown as this could involve future claims against the Trust.

16 Transactions with other funds managed by Neuberger Berman Management LLC: Neuberger Berman Alternative Funds and Management have obtained an exemptive order from the Securities and Exchange Commission ("SEC") that permits the Funds to invest in both affiliated and unaffiliated investment companies, including exchange-traded funds, in excess of the limits in Section 12(d)(1)(A) of the 1940 Act, as amended, subject to the terms and conditions of such order. Through October 31, 2013, Dynamic Real Return invested in the Neuberger Berman Emerging Markets Equity Fund, Neuberger Berman High Income Bond Fund, Neuberger Berman Floating Rate Income Fund and Neuberger Berman Risk Balanced Commodity Strategy Fund (collectively the "Underlying Funds"). Through October 31, 2013, Flexible Select invested in the Neuberger Berman Core Bond Fund (an "Underlying Fund") (See Note F).

For the Funds' investments in the Underlying Funds, Management waived a portion of its management fee equal to the management fee it received from the Underlying Funds on those assets (the "Arrangement"). For the fiscal period ended October 31, 2013, management fees waived under this Arrangement are reflected in the Statements of Operations under the caption "Investment management fees waived." For the fiscal period ended October 31, 2013, income earned under this Arrangement on Dynamic Real Return's and Flexible Select's investments is reflected in the Statements of Operations under the caption "Dividend income-affiliated issuers." For the fiscal period ended October 31, 2013, management fees waived and income earned under this Arrangement on Dynamic Real Return's and Flexible Select's investments in the Underlying Funds were as follows:

	Management fee waived		Income earned
Dynamic Real Return	$	25,313	$	112,148
Flexible Select		2,692		35,807

17 Expense offset arrangement: Prior to January 1, 2013, each Fund had an expense offset arrangement in connection with its custodian contract. For the year ended October 31, 2013, the impact of this arrangement was a reduction of expenses of $0, $16 and $48 for Dynamic Real Return, Global Allocation and Long Short, respectively.

18 Other: All net investment income and realized and unrealized capital gains and losses of each Fund are allocated, on the basis of relative net assets, pro rata among its respective classes.

Note B—Management Fees, Administration Fees, Distribution Arrangements, and Other Transactions with Affiliates:

Each Fund retains Management as its investment manager under a Management Agreement. For such investment management services, Dynamic Real Return pays Management a fee at the annual rate of 0.650% of the first $250 million of the Fund's average daily net assets, 0.625% of the next $250 million, 0.600% of the next $250 million, 0.575% of the next $250 million, 0.550% of the next $500 million, 0.525% of the next $2.5 billion, and 0.500% of the average daily net assets in excess of $4 billion. Flexible Select pays Management a fee at the annual rate of 0.600% of the first $250 million of the Fund's average daily net assets, 0.575% of the next $250 million, 0.550% of the next $250 million, 0.525% of the next $250 million, 0.500% of the next $500 million, 0.475% of the next $2.5 billion, and 0.450% of the average daily net assets in excess of $4 billion. As of February 28, 2013, Global Allocation pays Management a fee at the annual rate of 0.650% of the first $1 billion of the Fund's average daily net assets, 0.625% of the next $1 billion and 0.600% of average daily net assets in excess of $2 billion. Prior to February 28, 2013 Global Allocation paid Management a fee at the annual rate of 0.900% of the first $1 billion of the Fund's average daily net assets, 0.875% of the next $1 billion and 0.850% of average daily net assets in excess of $2 billion. Long Short pays Management a fee at the annual rate of 1.200% of the first $250 million of the Fund's

average daily net assets, 1.175% of the next $250 million, 1.150% of the next $250 million, 1.125% of the next $250 million, 1.100% of the next $500 million, 1.075% of the next $2.5 billion, and 1.050% of average daily net assets in excess of $4 billion. Accordingly, for the period ended October 31, 2013, the fee pursuant to the Management Agreement was equivalent to an annual effective rate of 0.65% (0.43% after management fee waiver (See Note A-16)), 0.60% (0.58% after management fee waiver (See Note A-16), 0.71% and 1.16% of Dynamic Real Return's, Flexible Select's, Global Allocation's and Long Short's average daily net assets, respectively.

Each Fund retains Management as its administrator under an Administration Agreement. Each Fund pays Management an administration fee at the annual rate of 0.06% of its average daily net assets under this agreement. In addition, each Fund's Institutional Class pays Management an administration fee at the annual rate of 0.09% of its average daily net assets under this agreement and each Fund's Class A and Class C pays Management an administration fee at the annual rate of 0.20% of its average daily net assets under this agreement. Additionally, Management retains State Street as its sub-administrator under a Sub-Administration Agreement. Management pays State Street a fee for all services received under the agreement.

Management has contractually agreed to waive current payment of fees and/or reimburse certain expenses of the Institutional Class, Class A and Class C of each Fund so that the total annual operating expenses of those classes do not exceed the expense limitations as detailed in the following table. These undertakings apply to a Fund's direct expenses and exclude interest, taxes, brokerage commissions, acquired fund fees and expenses, and extraordinary expenses, and, as of June 22, 2011 for Global Allocation and as of the commencement of operations for Dynamic Real Return, Flexible Select and Long Short, exclude dividend expenses relating to short sales as well as interest expenses relating to short sales for Dynamic Real Return and Flexible Select, if any; consequently, net expenses may exceed the contractual expense limitations. Each Fund has agreed that each of its respective classes will repay Management for fees and expenses waived or reimbursed for that class provided that repayment does not cause that class' annual operating expenses to exceed its contractual expense limitation in place at the time the fees and expenses were waived or reimbursed. Any such repayment must be made within three years after the year in which Management incurred the expense.

During the year ended October 31, 2013, repayments to Management under their contractual expense limitation agreements were as follows:

Long Short Institutional Class	$	269,112
Long Short Class A		43,517
Long Short Class C		11,051

At October 31, 2013, contingent liabilities to Management under the agreements were as follows:

					Expenses Reimbursed In Fiscal Period Ending, October 31,
					2011		2012		2013
					Subject to Repayment Until October 31,
Class	Contractual Expense Limitation⁽¹⁾			Expiration	2014		2015		2016
Dynamic Real Return Institutional Class		0.90	%	10/31/15	$	—	$	—	$	438,126	⁽⁴⁾
Dynamic Real Return Class A		1.26	%	10/31/15		—		—		5,378	⁽⁴⁾
Dynamic Real Return Class C		2.01	%	10/31/15		—		—		5,378	⁽⁴⁾
Flexible Select Institutional Class		0.85	%	10/31/16		—		—		216,729	⁽⁶⁾
Flexible Select Class A		1.21	%	10/31/16		—		—		2,426	⁽⁶⁾

					Expenses Reimbursed In Fiscal Period Ending, October 31,
					2011			2012			2013
					Subject to Repayment Until October 31,
Class	Contractual Expense Limitation⁽¹⁾			Expiration	2014			2015			2016
Flexible Select Class C		1.96	%	10/31/16	$	—		$	—		$	2,202	⁽⁶⁾
Global Allocation Institutional Class		0.90	%⁽⁵⁾	10/31/16		894,111	⁽²⁾		342,304			253,136
Global Allocation Class A		1.26	%⁽⁵⁾	10/31/16		11,162	⁽²⁾		125,936			141,365
Global Allocation Class C		2.01	%⁽⁵⁾	10/31/16		6,919	⁽²⁾		19,134			71,481
Long Short Institutional Class		1.70	%	10/31/16		—			—	⁽³⁾		—
Long Short Class A		2.06	%	10/31/16		—			—	⁽³⁾		—
Long Short Class C		2.81	%	10/31/16		—			—	⁽³⁾		—

(1) Expense limitation per annum of the respective class' average daily net assets.

(2) Period from December 29, 2010 (Commencement of Operations) to October 31, 2011.

(3) Period from December 29, 2011 (Commencement of Operations) to October 31, 2012.

(4) Period from December 19, 2012 (Commencement of Operations) to October 31, 2013.

(5) Prior to February 28, 2013, the contractual expense limitation was 1.20% for Institutional Class, 1.56% for Class A and 2.31% for Class C.

(6) Period from May 31, 2013 (Commencement of Operations) to October 31, 2013.

Neuberger Berman Fixed Income LLC ("NBFI"), as the sub-adviser to Dynamic Real Return and Global Allocation, is retained by Management to provide day-to-day investment management services and receives a monthly fee paid by Management. As investment manager, Management is responsible for overseeing the investment activities of NBFI. Neuberger Berman LLC ("Neuberger"), as the sub-adviser to Flexible Select and Long Short, is retained by Management to furnish it with investment recommendations and research information without added cost to the Fund. Several individuals who are officers and/or Trustees of the Trust are also employees of NBFI, Neuberger and/or Management.

Management, NBFI, and Neuberger are indirect subsidiaries of Neuberger Berman Group LLC (("NBG") and together with its consolidated subsidiaries ("NB Group")). NBSH Acquisition, LLC ("NBSH" and together with NBG, the "NB Parties"), which is owned by portfolio managers, members of the NB Group management team and certain of NB Group's key employees, senior professionals, and certain of their permitted transferees, owns, as of September 30, 2013, approximately 76% of NBG's equity, and Lehman Brothers Holdings Inc. ("LBHI") and certain of its subsidiaries (collectively the "LBHI Parties") own the remaining 24% of such equity. Pursuant to agreements among the NB Parties and the LBHI Parties, as well as the issuance of NBSH equity to employees with respect to their previously made equity elections relating to 2013 compensation, it is expected that NBSH will own 81% of NBG's equity as of January 1, 2014. NBG has the opportunity to continue to redeem the remaining NBG equity held by the LBHI Parties through a process that is expected to end in 2016.

Each Fund also has a distribution agreement with Management with respect to each class of shares. Management acts as agent in arranging for the sale of class shares without sales commission or other compensation, except as described below for Class A and Class C shares, and bears advertising and promotion expenses.

administrative and other services provided to these classes, Management's activities and expenses related to the sale and distribution of these classes of shares, and ongoing services provided to investors in these classes, Management receives from each of these classes a fee at the annual rate of 0.25% of Class A's and 1.00% of Class C's average daily net assets. Management receives this amount to provide distribution and shareholder servicing for these classes and pays a portion of it to institutions that provide such services. Those institutions may use the payments for, among other purposes, compensating employees engaged in sales and/or shareholder servicing. The amount of fees paid by each class during any year may be more or less than the cost of distribution and other services provided to that class. FINRA rules limit the amount of annual distribution fees that may be paid by a mutual fund and impose a ceiling on the cumulative distribution fees paid. The Trust's Plans comply with those rules.

Class A shares of each Fund are generally sold with an initial sales charge of up to 5.75% and no contingent deferred sales charge ("CDSC"), except that a CDSC of 1.00% will apply to certain redemptions made within 18 months following purchases of $1 million or more without an initial sales charge. Class C shares of each Fund are sold with no initial sales charge and a 1.00% CDSC if shares are sold within one year after purchase.

For the year ended October 31, 2013, Management, acting as underwriter and broker-dealer, received net initial sales charges from the purchase of Class A shares and CDSCs from the redemption of Class A and Class C shares as follows:

	Underwriter				Broker-Dealer
	Net Initial Sales Charge		CDSC		Net Initial Sales Charge		CDSC
Dynamic Real Return Class A	$	—	$	—	$	—	$	—
Dynamic Real Return Class C		—		33		—		—
Flexible Select Class A		—		—		—		—
Flexible Select Class C		—		—		—		—
Global Allocation Class A		11,227		—		—		—
Global Allocation Class C		—		860		—		—
Long Short Class A		145,995		—		—		—
Long Short Class C		—		28,940		—		—

Note C—Securities Transactions:

During the year ended October 31, 2013, there were purchase and sale transactions of long-term securities (excluding total return swaps, financial futures contracts, forward foreign currency contracts and option contracts) as follows:

	Purchases		Securities Sold Short		Sales		Covers on Securities Sold Short
Dynamic Real Return	$	21,418,281	$	—	$	5,832,904	$	—
Flexible Select		28,397,170		—		9,083,557		—
Global Allocation		15,696,029		16,270,881		11,138,661		10,169,985
Long Short		1,328,268,636		380,991,235		288,263,894		187,405,359

During the year ended October 31, 2013, no brokerage commissions on securities transactions were paid to affiliated brokers.

Note D—Fund Share Transactions:

Share activity for the years ended October 31, 2013 and October 31, 2012 was as follows:

	For the Year Ended October 31, 2013									For the Year Ended October 31, 2012
	Shares Sold		Shares Issued on Reinvestment of Dividends and Distributions		Shares Redeemed			Total		Shares Sold		Shares Issued on Reinvestment of Dividends and Distributions		Shares Redeemed			Total
Dynamic Real Return
Institutional Class⁽²⁾		1,682,682		—		(148,410	)		1,534,272		—		—		—			—
Class A⁽²⁾		10,246		—		—			10,246		—		—		—			—
Class C⁽²⁾		10,343		—		(343	)		10,000		—		—		—			—
Flexible Select
Institutional Class⁽³⁾		8,265,459		—		(188,898	)		8,076,561		—		—		—			—
Class A⁽³⁾		13,536		—		—			13,536		—		—		—			—
Class C⁽³⁾		10,000		—		—			10,000		—		—		—			—
Global Allocation
Institutional Class		951,702		14,913		(349,004	)		617,611		1,526,708		58,760		(1,285,156	)		300,312
Class A		832,046		4,880		(490,611	)		346,315		962,595		1,841		(643,796	)		320,640
Class C		278,048		1,044		(66,913	)		212,179		209,308		756		(939	)		209,125
Long Short
Institutional Class		83,663,403		76,375		(8,872,962	)		74,866,816		8,577,855		—		(231,938	)		8,345,917	⁽¹⁾
Class A		43,047,040		26,279		(5,046,542	)		38,026,777		2,458,443		—		(14,658	)		2,443,785	⁽¹⁾
Class C		9,454,741		1,606		(366,848	)		9,089,499		305,335		—		—			305,335	⁽¹⁾

(1) Period from December 29, 2011 (Commencement of Operations) to October 31, 2012.

(2) Period from December 19, 2012 (Commencement of Operations) to October 31, 2013.

(3) Period from May 31, 2013 (Commencement of Operations) to October 31, 2013.

Note E—Line of Credit:

At October 31, 2013, each Fund was a participant in a single committed, unsecured $300,000,000 ($200,000,000 prior to September 2013) line of credit with State Street, to be used only for temporary or emergency purposes. Other investment companies managed by Management also participate in this line of credit on the same terms. Interest is charged on borrowings under this line of credit at the higher of (a) the Federal Funds Rate plus 1.25% per annum or (b) the overnight LIBOR Rate plus 1.25% per annum. A commitment fee of 0.10% per annum of the available line of credit is charged, of which each participating Fund has agreed to pay its pro rata share, based on the ratio of its individual net assets to the net assets of all participants at the time the fee is due and payable. The fee is paid quarterly in arrears. Because several mutual funds participate, there is no assurance that an individual Fund will have access to all or any part of the $300,000,000 at any particular time. There were no loans outstanding pursuant to this line of credit at October 31, 2013. During the year ended October 31, 2013, none of the Funds utilized this line of credit.

At October 31, 2013, the Funds were participants in a single uncommitted, unsecured $100,000,000 line of credit with State Street, to be used only for temporary or emergency purposes. Other investment companies managed by Management also participate in this line of credit on the same terms. Interest is charged on borrowings under this line of credit at a variable rate per annum as determined and quoted by State Street at the time a Fund requests a loan. Because several mutual funds participate, there is no assurance that an individual Fund will have access to all or any part of the $100,000,000 at any particular time. There were no loans outstanding pursuant to this line of credit at October 31, 2013. During September (inception of line of credit) and October 2013, none of the Funds utilized this line of credit.

Note F—Investments in Affiliates⁽¹⁾:

	Balance of Shares Held October 31, 2012		Gross Purchases and Additions		Gross Sales and Reductions		Balance of Shares Held October 31, 2013		Value October 31, 2013		Income from Investments in Affiliated Issuers			Net Realized Gain (Loss) from Investments in Affiliated Issuers
Dynamic Real Return⁽²⁾
Neuberger Berman Emerging Markets Equity Fund Institutional Class		—		84,322		—		84,322	$	1,426,337	$	—		$	—
Neuberger Berman Floating Rate Income Fund Institutional Class		—		150,631		62,323		88,308		908,393		40,357			(11	)
Neuberger Berman High Income Bond Fund Institutional Class		—		159,659		—		159,659		1,539,701		71,791			—
Neuberger Berman Risk Balanced Commodity Strategy Fund Institutional Class		—		214,416		52,428		161,988		1,458,878		—	*		(32,670	)
Total									$	5,333,309	$	112,148		$	(32,681	)
Flexible Select⁽³⁾
Neuberger Berman Core Bond Fund Institutional Class		—		609,160		33,048		576,112	$	5,975,624	$	35,807		$	(8,784	)

(1) Affiliated issuers, as defined in the 1940 Act.

(2) Period from December 19, 2012 (Commencement of Operations) to October 31, 2013.

(3) Period from May 31, 2013 (Commencement of Operations) to October 31, 2013.

* Security did not produce income during the last twelve months.

Note G—Recent Accounting Pronouncements:

In December 2011, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2011-11 Disclosures about Offsetting Assets and Liabilities ("ASU 2011-11"). Effective for annual reporting periods beginning on or after January 1, 2013 and interim periods within those annual periods, ASU 2011-11 is intended to enhance disclosure requirements on the offsetting of financial assets and liabilities. At this time, Management is evaluating the implications of ASU 2011-11 and its impact on the Funds' financial statements. ASU 2011-11 is effective for Flexible Select as of October 31, 2013, however no additional disclosure was necessary.

In June 2013, FASB issued Accounting Standards Update 2013-08 Financial Services—Investment Companies (Topic 946)—Amendments to the Scope, Measurement, and Disclosure Requirements ("ASU 2013-08"). Effective for interim and annual reporting periods in fiscal years that begin after December 15, 2013, ASU 2013-08 sets forth a methodology for determining whether an entity should be characterized as an investment company and prescribes fair value accounting for an investment company's non-controlling ownership interest in another investment company. FASB has determined that a fund registered under the 1940 Act automatically meets ASU 2013-08's criteria for an investment company. Although still evaluating the potential impact of ASU 2013-08 on the Funds' financial statements, Management expects that the impact will be limited to additional financial statement disclosures.

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Financial Highlights

The following tables include selected data for a share outstanding throughout each period and other performance information derived from the Financial Statements. Per share amounts that round to less than $.01 or $(0.01) per share are presented as $0.00 or $(0.00), respectively. Ratios that round to less than 0.00% or (0.00%) per share are presented as 0.00% or (0.00%), respectively. Net Asset amounts with a zero balance may reflect actual amounts rounding to less than $0.1 million. A "—" indicates that the line item was not applicable in the corresponding period.

	��	Net Asset Value, Beginning of Year		Net Investment Income (Loss)^@			Net Gains or Losses on Securities (both realized and unrealized)		Total From Investment Operations		Dividends from Net Investment Income		Distributions from Net Realized Capital Gains		Total Distributions		Net Asset Value, End of Year		Total Return^††
Dynamic Real Return Fund
Institutional Class
Period from 12/19/2012^ to 10/31/2013		$	10.00	$	0.17		$	0.21	$	0.38	$	—	$	—	$	—	$	10.38		3.80	%**
Class A
Period from 12/19/2012^ to 10/31/2013		$	10.00	$	0.14		$	0.21	$	0.35	$	—	$	—	$	—	$	10.35		3.50	%**
Class C
Period from 12/19/2012^ to 10/31/2013		$	10.00	$	0.07		$	0.21	$	0.28	$	—	$	—	$	—	$	10.28		2.80	%**
Flexible Select Fund
Institutional Class
Period from 5/31/12013^ to 10/31/2013		$	10.00	$	0.04		$	0.76	$	0.80	$	—	$	—	$	—	$	10.80		8.00	%**
Class A
Period from 5/31/12013^ to 10/31/2013		$	10.00	$	0.02		$	0.76	$	0.78	$	—	$	—	$	—	$	10.78		7.80	%**
Class C
Period from 5/31/12013^ to 10/31/2013		$	10.00	$	(0.01	)	$	0.76	$	0.75	$	—	$	—	$	—	$	10.75		7.50	%**

See Notes to Financial Highlights

	Net Assets, End of Year (in millions)		Ratio of Gross Expenses to Average Net Assets^#			Ratio of Gross Expenses to Average Net Assets (excluding dividend expenses on securities sold short)			Ratio of Net Expenses to Average Net Assets			Ratio of Net Expenses to Average Net Assets (excluding dividend expenses on securities sold short)			Ratio of Net Investment Income/ (Loss) to Average Net Assets			Portfolio Turnover Rate (including securities sold short)			Portfolio Turnover Rate (excluding securities sold short)
Dynamic Real Return Fund
Institutional Class
Period from 12/19/2012^ to 10/31/2013	$	15.9		4.55	%‡*		4.55	%‡Ø*		.69	%‡*		.69	%‡Ø*		1.92	%‡*		45	%**		45	%Ø**
Class A
Period from 12/19/2012^ to 10/31/2013	$	0.1		6.99	%‡*		6.99	%‡Ø*		1.04	%‡*		1.04	%‡Ø*		1.59	%‡*		45	%**		45	%Ø**
Class C
Period from 12/19/2012^ to 10/31/2013	$	0.1		7.76	%‡*		7.76	%‡Ø*		1.79	%‡*		1.79	%‡Ø*		.84	%‡*		45	%**		45	%Ø**
Flexible Select Fund
Institutional Class
Period from 5/31/12013^ to 10/31/2013	$	87.2		1.97	%‡*		1.97	%‡Ø*		.83	%‡*		.83	%‡Ø*		.95	%‡*		20	%**		20	%Ø**
Class A
Period from 5/31/12013^ to 10/31/2013	$	0.1		5.09	%‡*		5.09	%‡Ø*		1.19	%‡*		1.19	%‡Ø*		.57	%‡*		20	%**		20	%Ø**
Class C
Period from 5/31/12013^ to 10/31/2013	$	0.1		6.71	%‡*		6.71	%‡Ø*		1.94	%‡*		1.94	%‡Ø*		(.18	%)‡*		20	%**		20	%Ø**

Financial Highlights (cont'd)

	Net Asset Value, Beginning of Year		Net Investment Income (Loss)^@			Net Gains or Losses on Securities (both realized and unrealized)		Total From Investment Operations		Dividends from Net Investment Income			Distributions from Net Realized Capital Gains			Total Distributions			Net Asset Value, End of Year		Total Return^††
Global Allocation Fund
Institutional Class
10/31/2013	$	10.30	$	(0.09	)	$	1.57	$	1.48	$	(0.15	)	$	—		$	(0.15	)	$	11.63		14.56	%
10/31/2012	$	10.30	$	(0.12	)	$	1.02	$	0.90	$	(0.21	)	$	(0.69	)	$	(0.90	)	$	10.30		9.60	%
Period from 12/29/2010^ to 10/31/2011	$	10.00	$	(0.08	)	$	0.38	$	0.30	$	—		$	—		$	—		$	10.30		3.00	%**
Class A
10/31/2013	$	10.25	$	(0.14	)	$	1.58	$	1.44	$	(0.12	)	$	—		$	(0.12	)	$	11.57		14.15	%
10/31/2012	$	10.27	$	(0.15	)	$	1.01	$	0.86	$	(0.19	)	$	(0.69	)	$	(0.88	)	$	10.25		9.24	%
Period from 12/29/2010^ to 10/31/2011	$	10.00	$	(0.14	)	$	0.41	$	0.27	$	—		$	—		$	—		$	10.27		2.70	%**
Class C
10/31/2013	$	10.13	$	(0.21	)	$	1.55	$	1.34	$	(0.04	)	$	—		$	(0.04	)	$	11.43		13.30	%
10/31/2012	$	10.21	$	(0.23	)	$	1.00	$	0.77	$	(0.16	)	$	(0.69	)	$	(0.85	)	$	10.13		8.34	%
Period from 12/29/2010^ to 10/31/2011	$	10.00	$	(0.18	)	$	0.39	$	0.21	$	—		$	—		$	—		$	10.21		2.10	%**
Long Short Fund
Institutional Class
10/31/2013	$	11.09	$	0.01		$	1.47	$	1.48	$	(0.01	)	$	(0.08	)	$	(0.09	)	$	12.48		13.47	%
Period from 12/29/2011^ to 10/31/2012	$	10.00	$	0.04		$	1.05	$	1.09	$	—		$	—		$	—		$	11.09		10.90	%**
Class A
10/31/2013	$	11.06	$	(0.03	)	$	1.47	$	1.44	$	(0.01	)	$	(0.08	)	$	(0.09	)	$	12.41		13.08	%
Period from 12/29/2011^ to 10/31/2012	$	10.00	$	0.00		$	1.06	$	1.06	$	—		$	—		$	—		$	11.06		10.60	%**
Class C
10/31/2013	$	10.99	$	(0.12	)	$	1.46	$	1.34	$	(0.00	)	$	(0.07	)	$	(0.07	)	$	12.26		12.23	%
Period from 12/29/2011^ to 10/31/2012	$	10.00	$	(0.06	)	$	1.05	$	0.99	$	—		$	—		$	—		$	10.99		9.90	%**

See Notes to Financial Highlights

	Net Assets, End of Year (in millions)		Ratio of Gross Expenses to Average Net Assets^#			Ratio of Gross Expenses to Average Net Assets (excluding dividend expenses on securities sold short)			Ratio of Net Expenses to Average Net Assets			Ratio of Net Expenses to Average Net Assets (excluding dividend expenses on securities sold short)			Ratio of Net Investment Income/ (Loss) to Average Net Assets			Portfolio Turnover Rate (including securities sold short)			Portfolio Turnover Rate (excluding securities sold short)
Global Allocation Fund
Institutional Class
10/31/2013	$	17.2		3.23	%		2.73	%		1.48	%		0.98	%		(.85	%)		187	%		158	%
10/31/2012	$	8.9		5.01	%		4.55	%		1.68	%		1.22	%		(1.19	%)		446	%		423	%
Period from 12/29/2010^ to 10/31/2011	$	5.8		18.45	%‡*		18.31	%‡*^^		1.36	%‡*		1.21	%‡*^^		(.95	%)‡*		268	%**		216	%**
Class A
10/31/2013	$	7.9		3.58	%		3.07	%		1.84	%		1.33	%		(1.25	%)		187	%		158	%
10/31/2012	$	3.4		5.41	%		4.93	%		2.07	%		1.59	%		(1.48	%)		446	%		423	%
Period from 12/29/2010^ to 10/31/2011	$	0.1		22.01	%‡*		21.63	%‡*^^		1.96	%‡*		1.58	%‡*^^		(1.64	%)‡*		268	%**		216	%**
Class C
10/31/2013	$	4.9		4.35	%		3.85	%		2.59	%		2.09	%		(1.99	%)		187	%		158	%
10/31/2012	$	2.2		6.47	%		6.03	%		2.78	%		2.34	%		(2.26	%)		446	%		423	%
Period from 12/29/2010^ to 10/31/2011	$	0.0		25.07	%‡*		24.87	%‡*^^		2.52	%‡*		2.33	%‡*^^		(2.12	%)‡*		268	%**		216	%**
Long Short Fund
Institutional Class
10/31/2013	$	1,038.2		1.75	%		1.60	%		1.75	%§		1.60	%§		.10	%		103	%		52	%
Period from 12/29/2011^ to 10/31/2012	$	92.6		2.78	%‡*		2.65	%‡*		1.83	%‡*		1.70	%‡*		.40	%‡*		93	%**		56	%**
Class A
10/31/2013	$	502.1		2.08	%		1.94	%		2.08	%§		1.94	%§		(.23	%)		103	%		52	%
Period from 12/29/2011^ to 10/31/2012	$	27.0		3.21	%‡*		3.11	%‡*		2.17	%‡*		2.06	%‡*		.05	%‡*		93	%**		56	%**
Class C
10/31/2013	$	115.1		2.83	%		2.68	%		2.83	%§		2.68	%§		(1.00	%)		103	%		52	%
Period from 12/29/2011^ to 10/31/2012	$	3.4		4.34	%‡*		4.20	%‡*		2.95	%‡*		2.81	%‡*		(.69	%)‡*		93	%**		56	%**

Notes to Financial Highlights

†† Total return based on per share NAV reflects the effects of changes in NAV on the performance of each Fund during each fiscal period. Returns assume income dividends and other distributions, if any, were reinvested, but do not reflect the effect of sales charges. Results represent past performance and do not indicate future results. Current returns may be lower or higher than the performance data quoted. Investment returns and principal may fluctuate and shares when redeemed may be worth more or less than original cost. Total return would have been lower if Management had not reimbursed and/or waived certain expenses. Total return would have been higher if Management had not recouped previously reimbursed and/or waived expenses.

^ The date investment operations commenced.

‡ Organization expense, which is a non-recurring expense, is included in these ratios on a non-annualized basis.

@ Calculated based on the average number of shares outstanding during each fiscal period.

§ After repayment of expenses previously reimbursed and/or fees previously waived by Management, as applicable. Had the Fund not made such repayments, the annualized ratios of net expenses to average daily net assets would have been:

	Including Dividend Expenses on Securities Sold Short			Excluding Dividend Expenses on Securities Sold Short
	Year Ended October 31, 2013
Long Short Fund Institutional Class		1.69	%		1.54	%
Long Short Fund Class A		2.06	%		1.92	%
Long Short Fund Class C		2.81	%		2.66	%

* Annualized.

** Not annualized.

^^ As of June 22, 2011, Global Allocation's Institutional Class, Class A and Class C contractual expense limitations exclude dividend expenses relating to short sales, if any; consequently, net expenses may exceed the contractual expense limitations (See Note B of Notes to Financial Statements).

# Represents the annualized ratios of net expenses to average daily net assets if Management had not reimbursed certain expenses and/or waived a portion of the investment management fee.

Ø Dynamic Real Return and Flexible Select did not engage in short sales.

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of
Neuberger Berman Alternative Funds and Shareholders of:
Neuberger Berman Dynamic Real Return Fund
Neuberger Berman Flexible Select Fund
Neuberger Berman Global Allocation Fund

We have audited the accompanying statements of assets and liabilities of Neuberger Berman Dynamic Real Return Fund, Neuberger Berman Flexible Select Fund and Neuberger Berman Global Allocation Fund, three of the series constituting the Neuberger Berman Alternative Funds (the "Funds"), including the schedules of investments, as of October 31, 2013, and the related statements of operations, the statements of changes in net assets, and the financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audit.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds' internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2013, by correspondence with the custodian, and others or by other appropriate auditing procedures where replies from others were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Neuberger Berman Dynamic Real Return Fund, Neuberger Berman Flexible Select Fund and Neuberger Berman Global Allocation Fund at October 31, 2013, the results of their operations, the changes in their net assets, and the financial highlights for each of the periods indicated therein, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts
December 20, 2013

Report of Independent Registered Public Accounting Firm

To the Board of Trustees and Shareholders
Neuberger Berman Alternative Funds

We have audited the accompanying statement of assets and liabilities of the Neuberger Berman Long Short Fund, a series of the Neuberger Berman Alternative Funds (the "Trust"), including the schedule of investments, as of October 31, 2013, and the related statement of operations for the year then ended, and the statements of changes in net assets and the financial highlights for the year then ended and for the period December 29, 2011 (commencement of operations) to October 31, 2012. These financial statements and financial highlights are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audit.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Trust is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2013, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Neuberger Berman Long Short Fund, as of October 31, 2013, and the results of its operations for the year then ended, and the changes in its net assets and the financial highlights for the year then ended and for the period December 29, 2011 (commencement of operations) to October 31, 2012, in conformity with accounting principles generally accepted in the United States of America.

Philadelphia, Pennsylvania
December 17, 2013

Directory

Investment Manager, Administrator and Distributor

Neuberger Berman Management LLC
605 Third Avenue, 2nd Floor
New York, NY 10158-0180
800.877.9700 or 212.476.8800
Intermediary Client Services 800.366.6264

Sub-Advisers

Neuberger Berman Fixed Income LLC
190 South LaSalle Street
Chicago, IL 60603

Neuberger Berman LLC
605 Third Avenue
New York, NY 10158-3698

Custodian and Shareholder Servicing Agent

State Street Bank and Trust Company
2 Avenue de Lafayette
Boston, MA 02111

For Institutional Class Shareholders
Address correspondence to:

Neuberger Berman Management LLC
605 Third Avenue, Mail Drop 2-7
New York, NY 10158-0180
Attn: Intermediary Client Services
800.366.6264

For Class A and Class C Shareholders:

Please contact your investment provider

Legal Counsel

K&L Gates LLP
1601 K Street, NW
Washington, DC 20006

Independent Registered Public Accounting Firms

Ernst & Young LLP
200 Clarendon Street
Boston, MA 02116

Tait, Weller & Baker LLP
1818 Market Street
Suite 2400
Philadelphia, PA 19103

Trustees and Officers

The following tables set forth information concerning the trustees ("Trustees") and officers ("Officers") of each of the Funds. All persons named as Trustees and Officers also serve in similar capacities for other funds administered or managed by Management, NBFI and/or Neuberger. Each Fund's Statement of Additional Information includes additional information about the Trustees as of the date of the Fund's most recent public offering documents and is available upon request, without charge, by calling (800) 877-9700.

Information about the Board of Trustees

Name, (Year of Birth),
and Address⁽¹⁾

Position(s)
and Length of
Time Served⁽²⁾

Principal Occupation(s)⁽³⁾

Number of
Funds in
Fund Complex
Overseen by
Trustee

Other Directorships Held
Outside Fund Complex by
Trustee⁽³⁾

Independent Trustees

Faith Colish (1935)

Trustee since inception

Counsel, Carter Ledyard & Milburn LLP (law firm) since October 2002; formerly, Attorney-at-Law and President, Faith Colish, A Professional Corporation, 1980 to 2002.

Formerly, Director, 1997 to 2003, and Advisory Director, 2003 to 2006, ABA Retirement Funds (formerly, American Bar Retirement Association) (not-for-profit membership corporation).

Name, (Year of Birth),
and Address⁽¹⁾

Position(s)
and Length of
Time Served⁽²⁾

Principal Occupation(s)⁽³⁾

Number of
Funds in
Fund Complex
Overseen by
Trustee

Other Directorships Held
Outside Fund Complex by
Trustee⁽³⁾

Martha C. Goss (1949)

Trustee since 2007

President, Woodhill Enterprises Inc./Chase Hollow Associates LLC (personal investment vehicle), since 2006; formerly, Consultant, Resources Global Professionals (temporary staffing), 2002 to 2006.

Director, American Water (water utility), since 2003; Director, Allianz Life of New York (insurance), since 2005; Director, Berger Group Holdings, Inc. (engineering consulting firm), since 2013; Director, Financial Women's Association of New York (not-for-profit association), since 2003; Trustee Emerita, Brown University, since 1998; Director, Museum of American Finance (not-for-profit), since 2013; formerly, Non-Executive Chair and Director, Channel Reinsurance (financial guaranty reinsurance), 2006 to 2010; formerly, Director, Ocwen Financial Corporation (mortgage servicing), 2005 to 2010; formerly, Director, Claire's Stores, Inc. (retailer), 2005 to 2007; formerly, Director, Parsons Brinckerhoff Inc. (engineering consulting firm), 2007 to 2010; formerly Director, Bank Leumi (commercial bank), 2005 to 2007; formerly Advisory Board Member, Attensity (software developer), 2005 to 2007.

Michael M. Knetter (1960)

Trustee since 2007

President and Chief Executive Officer, University of Wisconsin Foundation, since October 2010; formerly, Dean, School of Business, University of Wisconsin—Madison; formerly, Professor of International Economics and Associate Dean, Amos Tuck School of Business—Dartmouth College, 1998 to 2002.

Director, American Family Insurance (a mutual company, not publicly traded), since March 2009; formerly, Trustee, Northwestern Mutual Series Fund, Inc., 2007 to 2010; formerly, Director, Wausau Paper, 2005 to 2011; formerly, Director, Great Wolf Resorts, 2004 to 2009.

Name, (Year of Birth),
and Address⁽¹⁾

Position(s)
and Length of
Time Served⁽²⁾

Principal Occupation(s)⁽³⁾

Number of
Funds in
Fund Complex
Overseen by
Trustee

Other Directorships Held
Outside Fund Complex by
Trustee⁽³⁾

Howard A. Mileaf (1937)

Trustee since inception

Retired; formerly, Vice President and General Counsel, WHX Corporation (holding company), 1993 to 2001.

Formerly, Director, Webfinancial Corporation (holding company), 2002 to 2008; formerly, Director, WHX Corporation (holding company), 2002 to 2005; formerly, Director, State Theatre of New Jersey (not-for-profit theatre), 2000 to 2005.

George W. Morriss (1947)

Trustee since 2007

Adjunct Professor, Columbia University School of International and Public Affairs, since October 2012; formerly, Executive Vice President and Chief Financial Officer, People's Bank, Connecticut (a financial services company), 1991 to 2001.

Director and Treasurer, National Association of Corporate Directors, Connecticut Chapter, since 2013; Trustee, Steben Alternative Investment Funds, Steben Select Multi-Strategy Fund, and Steben Select Multi-Strategy Master Fund, since 2013; formerly, Manager, Larch Lane Multi-Strategy Fund complex (which consisted of three funds), 2006 to 2011; formerly, Member, NASDAQ Issuers' Affairs Committee, 1995 to 2003.

Tom D. Seip (1950)

Trustee since inception; Chairman of the Board since 2008; Lead Independent Trustee from 2006 to 2008

General Partner, Ridgefield Farm LLC (a private investment vehicle); formerly, President and CEO, Westaff, Inc. (temporary staffing), May 2001 to January 2002; formerly, Senior Executive, The Charles Schwab Corporation, 1983 to 1998, including Chief Executive Officer, Charles Schwab Investment Management, Inc.; Trustee, Schwab Family of Funds and Schwab Investments, 1997 to 1998; and Executive Vice President-Retail Brokerage, Charles Schwab & Co., Inc., 1994 to 1997.

Director, H&R Block, Inc. (financial services company), since May 2001; Chairman, Governance and Nominating Committee, H&R Block, Inc., since 2011; formerly, Chairman, Compensation Committee, H&R Block, Inc., 2006 to 2010; formerly, Director, Forward Management, Inc. (asset management company), 1999 to 2006.

Name, (Year of Birth),
and Address⁽¹⁾

Position(s)
and Length of
Time Served⁽²⁾

Principal Occupation(s)⁽³⁾

Number of
Funds in
Fund Complex
Overseen by
Trustee

Other Directorships Held
Outside Fund Complex by
Trustee⁽³⁾

Candace L. Straight (1947)

Trustee since inception

Private investor and consultant specializing in the insurance industry; formerly, Advisory Director, Securitas Capital LLC (a global private equity investment firm dedicated to making investments in the insurance sector), 1998 to December 2003.

Public Member, Board of Governors and Board of Trustees, Rutgers University, since 2011; Director, Montpelier Re Holdings Ltd. (reinsurance company), since 2006; formerly, Director, National Atlantic Holdings Corporation (property and casualty insurance company), 2004 to 2008; formerly, Director, The Proformance Insurance Company (property and casualty insurance company), 2004 to 2008; formerly, Director, Providence Washington Insurance Company (property and casualty insurance company), 1998 to 2006; formerly, Director, Summit Global Partners (insurance brokerage firm), 2000 to 2005.

Peter P. Trapp (1944)

Trustee since inception

Retired; formerly, Regional Manager for Mid-Southern Region, Ford Motor Credit Company, September 1997 to 2007; formerly, President, Ford Life Insurance Company, April 1995 to August 1997.

None.

Name, (Year of Birth),
and Address⁽¹⁾

Position(s)
and Length of
Time Served⁽²⁾

Principal Occupation(s)⁽³⁾

Number of
Funds in
Fund Complex
Overseen by
Trustee

Other Directorships Held
Outside Fund Complex by
Trustee⁽³⁾

Trustees who are "Interested Persons"

Joseph V. Amato* (1962)

Trustee since 2009

President and Director, Neuberger Berman Group LLC, since 2009; President and Chief Executive Officer, Neuberger and Neuberger Berman Holdings LLC (including its predecessor, Neuberger Berman Inc.), since 2007; Chief Investment Officer (Equities) and Managing Director, Management, since 2009; Managing Director, NBFI, since 2007; Board member of NBFI since 2006; formerly, Global Head of Asset Management of Lehman Brothers Holdings Inc.'s ("LBHI") Investment Management Division, 2006 to 2009; formerly, member of LBHI's Investment Management Division's Executive Management Committee, 2006 to 2009; formerly, Managing Director, Lehman Brothers Inc. ("LBI"), 2006 to 2008; formerly, Chief Recruiting and Development Officer, LBI, 2005 to 2006; formerly, Global Head of LBI's Equity Sales and a Member of its Equities Division Executive Committee, 2003 to 2005.

Member of Board of Advisors, McDonough School of Business, Georgetown University, since 2001; Member of New York City Board of Advisors, Teach for America, since 2005; Trustee, Montclair Kimberley Academy (private school), since 2007; Member of Board of Regents, Georgetown University, since 2013.

Robert Conti* (1956)

Chief Executive Officer, President and Trustee since 2008; prior thereto, Executive Vice President in 2008 and Vice President from inception to 2008

Managing Director, Neuberger, since 2007; Managing Director, NBFI, since 2009; formerly, Senior Vice President, Neuberger, 2003 to 2006; formerly, Vice President, Neuberger, 1999 to 2003; President and Chief Executive Officer, Management, since 2008; formerly, Senior Vice President, Management, 2000 to 2008.

Director, Staten Island Mental Health Society, since 1994; formerly, Chairman of the Board, Staten Island Mental Health Society, 2008 to 2011.

(1) The business address of each listed person is 605 Third Avenue, New York, New York 10158.

(2) Pursuant to the Trust's Trust Instrument, each of these Fund Trustees shall hold office for life or until his or her successor is elected or the Trust terminates; except that (a) any Fund Trustee may resign by delivering a written resignation; (b) any Fund Trustee may be removed with or without cause at any time by a written instrument signed by at least two-thirds of the other Fund Trustees; (c) any Fund Trustee who requests to be retired, or who has become unable to serve, may be retired by a written instrument signed by a majority of the other Fund Trustees; and (d) any Fund Trustee may be removed at any shareholder meeting by a vote of at least two-thirds of the outstanding shares.

(3) Except as otherwise indicated, each individual has held the positions shown for at least the last five years.

* Indicates a Fund Trustee who is an "interested person" within the meaning of the 1940 Act. Mr. Amato and Mr. Conti are interested persons of the Trust because each is an officer of Management, Neuberger, NBFI and/or their affiliates.

Information about the Officers of the Trust

Name, (Year of Birth), and Address⁽¹⁾	Position(s) and Length of Time Served⁽²⁾	Principal Occupation(s)⁽³⁾
Andrew B. Allard (1961)	Chief Legal Officer since 2013 (only for purposes of sections 307 and 406 of the Sarbanes-Oxley Act of 2002) and Anti-Money Laundering Compliance Officer since 2002	General Counsel and Senior Vice President, Management, since 2013; Senior Vice President, Neuberger, since 2006 and Employee since 1999; Deputy General Counsel, Neuberger, since 2004; formerly, Vice President, Neuberger, 2000 to 2005; formerly, Employee, Management, 1994 to 1999; Chief Legal Officer since 2013 (only for purposes of sections 307 and 406 of the Sarbanes-Oxley Act of 2002) ten registered investment companies for which Management acts as investment manager and administrator (ten since 2013); Anti-Money Laundering Compliance Officer, ten registered investment companies for which Management acts as investment manager and administrator (six since 2002, one since 2003, one since 2005, one since 2006 and one since 2013).
Claudia A. Brandon (1956)	Executive Vice President since 2008 and Secretary since inception	Senior Vice President, Neuberger, since 2007 and Employee since 1999; Senior Vice President, Management, since 2008 and Assistant Secretary since 2004; formerly, Vice President, Neuberger, 2002 to 2006; formerly, Vice President-Mutual Fund Board Relations, Management, 2000 to 2008; formerly, Vice President, Management, 1986 to 1999 and Employee 1984 to 1999; Executive Vice President, ten registered investment companies for which Management acts as investment manager and administrator (nine since 2008 and one since 2013); Secretary, ten registered investment companies for which Management acts as investment manager and administrator (three since 1985, three since 2002, one since 2003, one since 2005, one since 2006 and one since 2013).
Agnes Diaz (1971)	Vice President since 2013	Vice President, ten registered investment companies for which Management acts as investment manager and administrator (ten since 2013).
Anthony DiBernardo (1979)	Assistant Treasurer since 2011	Vice President, Neuberger, since 2009; Employee, Management, since 2003; Assistant Treasurer, ten registered investment companies for which Management acts as investment manager and administrator (nine since 2011 and one since 2013).
Sheila R. James (1965)	Assistant Secretary since inception	Vice President, Neuberger, since 2008 and Employee since 1999; formerly, Assistant Vice President, Neuberger, 2007; formerly, Employee, Management, 1991 to 1999; Assistant Secretary, ten registered investment companies for which Management acts as investment manager and administrator (six since 2002, one since 2003, one since 2005, one since 2006 and one since 2013).
Brian Kerrane (1969)	Vice President since 2008	Senior Vice President, Neuberger, since 2008 and Employee since 1991; formerly, Vice President, Neuberger, 2002 to 2008; Vice President, ten registered investment companies for which Management acts as investment manager and administrator (nine since 2008 and one since 2013).

Name, (Year of Birth), and Address⁽¹⁾	Position(s) and Length of Time Served⁽²⁾	Principal Occupation(s)⁽³⁾
Kevin Lyons (1955)	Assistant Secretary since inception	Assistant Vice President, Neuberger, since 2008 and Employee since 1999; formerly, Employee, Management, 1993 to 1999; Assistant Secretary, ten registered investment companies for which Management acts as investment manager and administrator (seven since 2003, one since 2005, one since 2006 and one since 2013).
Owen F. McEntee, Jr. (1961)	Vice President since 2008	Vice President, Neuberger, since 2006; Employee, Management, since 1992; Vice President, ten registered investment companies for which Management acts as investment manager and administrator (nine since 2008 and one since 2013).
John M. McGovern (1970)	Treasurer and Principal Financial and Accounting Officer since inception	Senior Vice President, Neuberger, since 2007; formerly, Vice President, Neuberger, 2004 to 2006; Employee, Management, since 1993; Treasurer and Principal Financial and Accounting Officer, ten registered investment companies for which Management acts as investment manager and administrator (eight since 2005, one since 2006 and one since 2013); formerly, Assistant Treasurer, eight registered investment companies for which Management acts as investment manager and administrator, 2002 to 2005.
Frank Rosato (1971)	Assistant Treasurer since inception	Vice President, Neuberger, since 2006; Employee, Management, since 1995; Assistant Treasurer, ten registered investment companies for which Management acts as investment manager and administrator (eight since 2005, one since 2006 and one since 2013).
Neil S. Siegel (1967)	Vice President since 2008	Managing Director, Management, since 2008; Managing Director, Neuberger, since 2006; Managing Director, NBFI, since 2011; formerly, Senior Vice President, Neuberger, 2004 to 2006; Vice President, ten registered investment companies for which Management acts as investment manager and administrator (nine since 2008 and one since 2013).
Chamaine Williams (1971)	Chief Compliance Officer since inception	Senior Vice President, Neuberger Berman, since 2007; Chief Compliance Officer, NB Management, since 2006; Chief Compliance Officer, ten registered investment companies for which NB Management acts as investment manager and administrator (eight since 2005, one since 2006 and one since 2013); formerly, Senior Vice President, LBI, 2007 to 2008; formerly, Vice President, LBI, 2003 to 2006; formerly, Chief Compliance Officer, Lehman Brothers Asset Management Inc., 2003 to 2007; formerly, Chief Compliance Officer, Lehman Brothers Alternative Investment Management LLC, 2003 to 2007.

(1) The business address of each listed person is 605 Third Avenue, New York, New York 10158.

(2) Pursuant to the By-Laws of the Trust, each officer elected by the Fund Trustees shall hold office until his or her successor shall have been elected and qualified or until his or her earlier death, inability to serve, or resignation. Officers serve at the pleasure of the Fund Trustees and may be removed at any time with or without cause.

(3) Except as otherwise indicated, each individual has held the positions shown for at least the last five years.

Proxy Voting Policies and Procedures

A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to portfolio securities is available, without charge, by calling 800-877-9700 (toll-free) and on the website of the Securities and Exchange Commission at www.sec.gov. Information regarding how the Trust voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is also available, without charge, by calling 800-877-9700 (toll-free), on the website of the Securities and Exchange Commission at www.sec.gov, and on Management's website at www.nb.com.

Quarterly Portfolio Schedule

The Trust files a complete schedule of portfolio holdings for each Fund with the Securities and Exchange Commission for the first and third quarters of the fiscal year on Form N-Q. The Trust's Forms N-Q are available on the Securities and Exchange Commission's website at www.sec.gov and may be reviewed and copied at the Securities and Exchange Commission's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330. The information on Form N-Q is available upon request, without charge, by calling 800-877-9700 (toll-free).

Notice to Shareholders

In early 2014 you will receive information to be used in filing your 2013 tax returns, which will include a notice of the exact tax status of all distributions paid to you by the Fund during calendar year 2013. Please consult your own tax advisor for details as to how this information should be reflected on your tax returns.

For the fiscal year ended October 31, 2013, each Fund makes the following designation, or up to the maximum amount of such dividends allowable pursuant to the Internal Revenue Code, as qualified dividend income eligible for reduced tax rates. Complete information regarding each Funds distributions during the calendar year 2013 will be reported in conjunction with Form 1099-DIV.

Fund	Qualified Dividend Income
Dynamic Real Return	$	246,164
Flexible Select		243,762
Global Allocation		163,053
Long Short		6,397,989

Board Consideration of the Management and Sub-Advisory Agreements

In evaluating the Agreements, the Board, including the Independent Fund Trustees, reviewed extensive materials provided by Management in response to questions submitted by the Board and counsel for the Independent Fund Trustees, and met with senior representatives of Management regarding their personnel, operations and financial conditions as they relate to the Funds. The annual contract review extends over at least two regular meetings of the Board to ensure that Management, Neuberger Berman LLC ("Neuberger") and Neuberger Berman Fixed Income LLC ("NBFI") have time to respond to any questions the Independent Fund Trustees may have on their initial review of the materials and that the Independent Fund Trustees have time to consider those responses. (Neuberger serves as sub-adviser for Neuberger Berman Long Short Fund, and NBFI serves as sub-adviser for Neuberger Berman Global Allocation Fund.)

In connection with its deliberations, the Board also considered the broad range of information relevant to the annual contract review that is provided to the Board (including its various standing committees) at meetings throughout the year, including investment performance reports and related portfolio information for each Fund, as well as periodic reports on, among other matters, pricing and valuation; brokerage and execution; and compliance, shareholder and other services provided by Management, Neuberger, NBFI and their affiliates. To assist the Board in its deliberations regarding the annual contract review, the Board has established a Contract Review Committee comprised of Independent Fund Trustees, as well as other committees that focus throughout the year on specific areas relevant to the annual contract review, such as Fund performance or compliance matters.

Throughout the process, the Independent Fund Trustees were advised by counsel that is experienced in Investment Company Act of 1940 matters and that is independent of Management. The Independent Fund Trustees received from independent counsel a memorandum discussing the legal standards for their consideration of the proposed continuation of the Agreements. During the course of the year and during their deliberations regarding the annual contract review, the Independent Fund Trustees met with such counsel separately from representatives of Management, Neuberger, and NBFI.

In connection with its approval of the continuation of the Agreements, the Board evaluated the terms of the Agreements, the overall fairness of the Agreements to each Fund and whether the Agreements were in the best interests of each Fund and its shareholders. The Board considered all factors it deemed relevant with respect to each Fund, including the following factors: (1) the nature, extent, and quality of the services provided by Management and Neuberger or NBFI, as applicable; (2) the investment performance of the Fund compared to a relevant market index and/or a peer group of investment companies; (3) the costs of the services provided and profit or loss realized by Management and its affiliates from their relationship with the Fund; (4) the extent to which economies of scale might be realized as the Fund grows; and (5) whether fee levels reflect any such potential economies of scale for the benefit of investors in the Fund. While each Trustee may have attributed different weights to the various factors, the Board's determination to approve the continuation of the Agreements was based on a comprehensive consideration of all information provided to the Board throughout the year and specifically in connection with the annual contract review. The Board members did not identify any particular information or factor that was all-important or controlling. The Board focused on the overall costs and benefits of the Agreements relating to each Fund and, through the Funds, their shareholders.

With respect to the nature, extent and quality of the services provided, the Board considered the investment philosophy and decision-making processes of Management, Neuberger, and NBFI, and the qualifications, experience and capabilities of and the resources available to the portfolio management personnel of Management, Neuberger or NBFI, as applicable, who perform services for the Funds. The Board noted that Management also provides certain administrative services, including fund accounting and compliance oversight. The Board also considered Management's, Neuberger's and NBFI's policies and practices regarding brokerage and allocation of portfolio transactions and reviewed the quality of the

execution services that Management had provided. The Board also reviewed whether Management, Neuberger, or NBFI used brokers to execute Fund transactions that provide research and other services to Management, Neuberger, or NBFI and the types of benefits potentially derived from such services by Management, Neuberger, NBFI, the Funds and other clients of Management, Neuberger and NBFI. The Board also considered that Management's responsibilities include daily management of investment, operational, enterprise, legal, regulatory and compliance risks as they relate to the Funds, and considered information regarding Management's processes for managing risk. In addition, the Board noted the positive compliance history of Management, Neuberger, and NBFI, as each firm has been free of significant reported compliance problems. The Board also considered the general structure of the portfolio manager compensation program and whether this structure provides appropriate incentives to act in the best interest of the Funds. Because the Neuberger Berman Global Allocation Fund makes significant use of investment techniques that are not widely used by other funds in the NB fund family, the Board, prior to initially approving the Fund, received additional reports from Management regarding Management's programs for compliance and oversight of investment and operational risk, as well as other elements of the operational infrastructure, which the Board has continued to monitor.

As in past years, the Board also considered the manner in which Management addressed various non-routine matters that arose during the year, some of them a result of developments in the broader fund industry or the regulations governing it. In addition, the Board considered actions taken by Management, Neuberger and NBFI in response to recent market conditions, including actions taken in response to changes in market volatility, and considered the overall performance of Management, Neuberger and NBFI in this context.

With respect to investment performance, the Board considered information regarding each Fund's performance on both an absolute basis and relative to a relevant market index (or benchmark) and/or the average performance of its composite peer group of investment companies pursuing broadly similar strategies. The Board also reviewed performance in relation to certain measures of the degree of investment risk undertaken by the portfolio managers. The Board factored into its evaluation of each Fund's performance the limitations inherent in the methodology for constructing peer groups and determining which investment companies should be included in which peer groups. The Board noted that performance, especially short-term performance, is only one of the factors that it deems relevant to its consideration of a Fund's Agreements and that, after considering all relevant factors, it may be appropriate to approve the continuation of the Agreements notwithstanding a Fund's recent performance.

With respect to the overall fairness of the Agreements, the Board considered the fee structure for each Fund under the Agreements as compared to a peer group of comparable funds and any fall-out benefits likely to accrue to Management or NBFI or their affiliates from their relationship with each Fund. The Board also considered the profitability of Management and its affiliates from their association with the Funds. The Board reviewed a comparison of each Fund's management fee and overall expense ratio to a peer group of broadly comparable funds. The Board noted that the comparative management fee analysis includes, in each Fund's management fee, the separate administrative fee paid to Management, but it was not clear whether this was the case for all funds in the peer group. The Board considered the mean and median of the management fees and expense ratios for each Fund's peer group. In addition, the Board considered the contractual limit on expenses of certain classes of each Fund. The Board noted that Management incurred a loss on the Funds during the review period. The Board also considered whether there were other funds that were advised or sub-advised by Management or its affiliates or separate accounts managed by Management or its affiliates with investment objectives, policies and strategies that were similar to those of the Funds. The Board compared the fees charged to each Fund to the fees charged to any such funds and/or separate accounts. The Board considered the appropriateness and reasonableness of any differences between the fees charged to each Fund and any such funds and/or separate accounts, including any breakpoints, and determined that any differences in fees and fee structures were consistent with the management and other services provided. With respect to Neuberger Berman Global Allocation Fund, the fee and expense comparisons discussed above were performed when the Fund was first considered by the Board.

The Board also evaluated any apparent or anticipated economies of scale in relation to the services Management provides to the Funds. The Board considered whether each Fund's fee structure provides for a reduction of payments resulting from the use of breakpoints and whether any such breakpoints are set at appropriate asset levels.

In concluding that the benefits accruing to Management and its affiliates by virtue of their relationship to the Funds were reasonable in light of the costs of providing the investment advisory and other services and the benefits accruing to the Funds, the Board reviewed specific data as to Management's profit or loss on each Fund for a recent period. The Board also carefully examined Management's cost allocation methodology. The Board recognized that Management should be entitled to earn a reasonable level of profits for services it provides to the Funds and, based on its review, concluded that Management's reported level of profitability was reasonable.

Conclusions

In approving the Agreements, the Board concluded that the terms of each Agreement are fair and reasonable to each Fund and that approval of the Agreements is in the best interests of each Fund and its shareholders. In reaching this determination, the Board considered that Management and Neuberger or NBFI, as applicable, could be expected to provide a high level of service to each Fund; that the performance of the each Fund was satisfactory; that each Fund's fee structure appeared to the Board to be reasonable given the nature, extent and quality of services provided; and that the benefits accruing to Management and its affiliates by virtue of their relationship to the Funds were reasonable in light of the benefits accruing to the Funds. The Board's conclusions may be based in part on its consideration of materials prepared in connection with the Agreements in prior years and on the Board's ongoing regular review of the Funds' performance and operations throughout the year, in addition to material prepared specifically for the most recent annual review of the Agreements.

Board Consideration of the Management and Sub-Advisory Agreements (Neuberger Berman Flexible Select Fund)

At a meeting held on February 26-27, 2013, the Board of Trustees ("Board") of Neuberger Berman Alternative Funds ("Trust"), including the Trustees who are not "interested persons" of Neuberger Berman Management LLC ("Management") (including its affiliates) or the Trust ("Independent Fund Trustees"), approved the Management and Sub-Advisory Agreements ("Agreements") for Neuberger Berman Flexible Select Fund (the "Fund").

In evaluating the Agreements, the Board, including the Independent Fund Trustees, reviewed extensive materials provided by Management and Neuberger Berman LLC ("Neuberger Berman"), and met with senior representatives of Management regarding their personnel, operations and financial conditions as they relate to the Fund.

To assist the Board in its deliberations regarding the contract review, the Board has established a Contract Review Committee comprised of Independent Fund Trustees, as well as other committees that focus on specific areas relevant to the contract review.

The Independent Fund Trustees were advised by counsel that is experienced in Investment Company Act of 1940 matters and that is independent of Management. The Independent Trustees received from independent counsel a memorandum discussing the legal standards for their consideration of the Agreements. During the course of their deliberations regarding the contract review, the Independent Fund Trustees met with such counsel separately from representatives of Management and Neuberger Berman.

In connection with its approval of the Agreements, the Board evaluated the terms of the Agreements, the overall fairness of the Agreements to the Fund and whether the Agreements were in the best interests of the Fund and its shareholders. The Board considered all factors it deemed relevant with respect to the Fund, including the following factors: (1) the nature, extent, and quality of the services to be provided by Management and Neuberger Berman; (2) the expected costs of the services to be provided; (3) the extent to which economies of scale might be realized as the Fund grows; and (4) whether proposed fee levels reflect any such potential economies of scale for the benefit of investors in the Fund. While each Trustee may have attributed different weights to the various factors, the Board's determination to approve the Agreements was based on a comprehensive consideration of all information provided to the Board, and the Board members did not identify any particular information or factor that was all-important or controlling. The Board focused on the overall costs and benefits of the Agreements relating to the Fund and, through the Fund, its shareholders.

With respect to the nature, extent and quality of the services to be provided, the Board considered the investment philosophy and decision-making processes of Management and Neuberger Berman, and the qualifications, experience and capabilities of and the resources available to the portfolio management personnel of Management and Neuberger Berman who would perform services for the Fund. The Board noted that Management also would provide certain administrative services, including fund accounting and compliance oversight. The Board also considered Management's policies and practices regarding brokerage and allocation of portfolio transactions. The Board also considered that Management's responsibilities include daily management of investment, operational, enterprise, legal, regulatory and compliance risks as they relate to the Fund, and considered information regarding Management's process for managing risk. In addition, the Board considered the scope and depth of the compliance programs of Management and Neuberger Berman. The Board also considered the manner in which Management addressed various non-routine matters that have arisen from time to time, some of them a result of developments in the broader fund industry or the regulations governing it.

The Board also noted the performance, over various periods, of a separate account that was managed by Management or its affiliates with investment objectives, policies and strategies that were similar to those of the Fund.

With respect to the overall fairness of the Agreements, the Board considered the fee structure proposed for the Fund under the Agreements as compared to a peer group of comparable funds and any fall-out benefits likely to accrue to Management or Neuberger Berman or their affiliates from their relationship with the Fund. The Board reviewed a comparison of the Fund's proposed management fee and overall expense ratio to a peer group of broadly comparable funds. The Board noted that the comparative management fee analysis includes, in the Fund's management fee, the separate administrative fee proposed to be paid to Management, but it was not clear whether this was the case for all funds in the peer group. The Board considered the mean and median of the management fees and overall expense ratios of the peer group. Where the Fund's proposed management fee was higher than the peer group mean and/or median for some classes, the Board considered whether specific portfolio management or administration needs contributed to the management fee. In addition, the Board considered the proposed contractual limit on expenses of each class of the Fund. The Board also considered whether there were other accounts that were managed by Management or its affiliates with investment objectives, policies and strategies that were similar to those of the Fund. The Board compared the fees proposed to be charged to the Fund to the fees charged to any such accounts. The Board considered the appropriateness and reasonableness of any differences between the fees proposed to be charged to the Fund and any such accounts, including any breakpoints, and determined that any differences in fees and fee structures were consistent with the management and other services provided. The Board considered that the Fund's fee structure provides for a reduction of payments resulting from the use of breakpoints. The Board also considered whether it would be appropriate to evaluate any anticipated economies of scale in relation to the services Management would provide to the Fund, noting that it may be too soon to anticipate the economies at the start-up phase of a fund. The Board concluded that the benefits expected to accrue to Management and its affiliates by virtue of their relationship to the Fund were reasonable in light of the costs of providing the investment advisory and other services and the benefits expected to accrue to the Fund.

Conclusions

In approving the Agreements, the Board concluded that the terms of each Agreement are fair and reasonable to the Fund and that approval of the Agreements is in the best interests of the Fund and its shareholders. In reaching this determination, the Board considered that Management and Neuberger Berman could be expected to provide a high level of service to the Fund; that the Fund's proposed fee structure appeared to the Board to be reasonable given the nature, extent and quality of services expected to be provided; and that the benefits expected to accrue to Management and its affiliates by virtue of their relationship to the Fund were reasonable in light of the costs of providing the investment advisory and other services and the benefits expected to accrue to the Fund.

Neuberger Berman Management LLC
605 Third Avenue 2nd Floor
New York, NY 10158–0180
Shareholder Services
800.877.9700
Institutional Services
800.366.6264
www.nb.com

Statistics and projections in this report are derived from sources deemed to be reliable but cannot be regarded as a representation of future results of the Funds. This report is prepared for the general information of shareholders and is not an offer of shares of the Funds. Shares are sold only through the currently effective prospectus, which must precede or accompany this report.

L0265 12/13

Neuberger Berman
Alternative Funds

Institutional Class Shares
Class A Shares
Class C Shares

Risk Balanced Commodity Strategy Fund

Annual Report

October 31, 2013

Contents

PRESIDENT'S LETTER					1
PORTFOLIO COMMENTARY					2
FUND EXPENSE INFORMATION					7
CONSOLIDATED SCHEDULE OF INVESTMENTS					9
CONSOLIDATED FINANCIAL STATEMENTS					14
CONSOLIDATED FINANCIAL HIGHLIGHTS/ PER SHARE DATA					27
Report of Independent Registered Public Accounting Firm					30
Directory					31
Trustees and Officers					32
Proxy Voting Policies and Procedures					40
Quarterly Portfolio Schedule					40
Board Consideration of the Management and Sub-Advisory Agreements					41

The "Neuberger Berman" name and logo are registered service marks of Neuberger Berman Group LLC. "Neuberger Berman Management LLC" and the individual Fund name in this piece are either service marks or registered service marks of Neuberger Berman Management LLC. ^_©2013 Neuberger Berman Management LLC. All rights reserved.

President's Letter

Dear Shareholder,

I am pleased to present this annual shareholder report for Neuberger Berman Risk Balanced Commodity Strategy Fund. The report includes a portfolio commentary, a listing of the Fund's investments and its audited financial statements for the 12 months ended October 31, 2013. The Fund seeks to generate returns that are not highly correlated with other major asset classes and that may improve the overall risk-reward profile of an investment portfolio.

Overall, the commodity markets were weak during the reporting period. This was driven by a number of factors, including signs of moderating growth in China and certain other parts of the world, concerns regarding the U.S. fiscal cliff, sequestration and the debt ceiling, generally favorable weather conditions as well as geopolitical events. Precious metals and agricultural commodities posted the weakest results during the reporting period, whereas the energy sector (ex-natural gas) generated a positive return.

Our short- to medium-term outlook for commodities is somewhat mixed. Over the coming months, precious metals may become more attractively valued given their sharp decline over the last year. Still, a rebound will likely be driven by expectations for global growth and inflation, in our view. Our short-term forecast for the energy sector is somewhat more restrained given current supply/demand trends. That being said, we believe that commodities remain an important long-term investment opportunity and a way for investors to more thoroughly diversify their portfolios.

Thank you for your continued support and trust. We look forward to continue serving your investment needs in the years to come.

Sincerely,

ROBERT CONTI
PRESIDENT AND CEO
NEUBERGER BERMAN MUTUAL FUNDS

Risk Balanced Commodity Strategy Fund Commentary (Unaudited)

Neuberger Berman Risk Balanced Commodity Strategy Fund¹Institutional Class generated a -8.43% total return for the 12 months ended October 31, 2013 and outperformed its benchmark, the Dow Jones-UBS Commodity Index, which posted a -12.21% return for the period. (Performance for all share classes is provided in the table immediately following this letter.)

Most segments of the commodity market produced negative results during the reporting period. This was triggered by a number of factors, including concerns regarding global growth—especially in China—generally weak supply/demand trends, favorable weather conditions and shifting central bank monetary policy. Investor sentiment was also negatively impacted by a number of geopolitical issues. Against this backdrop, precious metals and agricultural commodities posted the weakest results. Energy (ex-natural gas) was the only major commodity sector to generate a positive return during the period—crude oil rose but natural gas declined.

The Fund's core strategy uses a systematic investment process to select portfolio weights that are projected to balance risk among each of the underlying individual commodities which aggregate into six major commodity sectors: energy, industrial metals, precious metals, agriculture, livestock and softs. Relative to the DJ-UBS Commodity Index, the Fund's overweight positions in Brent crude oil, gasoline, cocoa and lean hogs were beneficial to performance. The Fund's relative underweights in gold, corn, silver and natural gas were also beneficial.

The Fund's tactical strategy seeks to enhance performance by having tactical tilts toward or away from certain sectors. These tactical tilts are based on short- to medium-term factors including macroeconomics, supply/demand, the pricing relationships among commodities and the shape of the futures curve. The Fund's tactical positioning added value during the reporting period.¹

As we look ahead to the end of the year and into 2014, we anticipate there will be limited upside to the energy complex as the recently built-in Syria premium appears to have faded and a pick-up in Libyan production is likely to balance the market. In our opinion precious metals may be in the best position for a rebound given their declines, but this is partially contingent on inflation expectations and economic growth.

Aside from mildly reducing our exposure to precious metals over the last few months, sector weights in the Fund have largely remained consistent. In the very near term, our tactical views reflect a cautious approach to agricultural commodities, which in the U.S. are generally in their harvesting period, and also to gold and silver within the precious metals sector. Meanwhile, the Fund is tactically positioned with a more favorable outlook toward other sectors, but positions may change during the coming months as market conditions evolve.

Sincerely,

WAI LEE, HAKAN KAYA, THOMAS SONTAG AND RICHARD GRAU
PORTFOLIO CO-MANAGERS

Information about the principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.

The portfolio composition, industries and holdings of the Fund are subject to change.

The opinions expressed are those of the Fund's portfolio managers. The opinions are as of the date of this report and are subject to change without notice.

¹ Much of the Fund's investment exposure is accomplished through the use of derivatives which may not require the Fund to deposit the full notional amount of the investment with its counterparties, such as a futures commission merchant. The Fund's resulting cash balances are invested in money market mutual funds.

Risk Balanced Commodity Strategy Fund (Unaudited)

TICKER SYMBOLS

Institutional Class				NRBIX
Class A				NRBAX
Class C				NRBCX

PORTFOLIO BY TYPE OF SECURITY

(as a % of Total Investments)
Asset-Backed Securities	4.9	%
Corporate Debt Securities	46.6
U.S. Government Agency Securities	1.1
U.S. Treasury Securities	15.1
Short-Term Investments	32.3
Total	100.0	%

PORTFOLIO BY INVESTMENT EXPOSURE

TO COMMODITY DERIVATIVES

(as a % of Total Notional Value)
Commodity Futures:
Agriculture	18.1	%
Energy	32.2
Industrial Metals	19.9
Livestock	11.8
Precious Metals	11.1
Softs	6.9
Total	100.0	%

PERFORMANCE HIGHLIGHTS²

		Average Annual Total Return
	Inception	Ended 10/31/2013
	Date	1 Year			Life of Fund
At NAV
Institutional Class	08/27/2012		-8.43	%		-8.45	%
Class A	08/27/2012		-8.84	%		-8.79	%
Class C	08/27/2012		-9.66	%		-9.57	%
With Sales Charge
Class A			-14.08	%		-13.26	%
Class C			-10.57	%		-9.57	%
Index
Dow Jones-UBS Commodity Index^1,3			-12.21	%		-11.80	%

The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.

As stated in the Fund's most recent prospectus, the estimated total annual operating expense ratios for fiscal year 2013 were 1.59%, 1.95% and 2.70% for Institutional Class, Class A and Class C shares, respectively (before expense reimbursements and/or fee waivers, if any). The expense ratios were 1.12%, 1.48% and 2.23% for Institutional Class, Class A and Class C shares, respectively, after expense reimbursements and/or fee waivers.

Risk Balanced Commodity Strategy Fund (Unaudited)

COMPARISON OF A $1,000,000 INVESTMENT

(000's omitted)

Endnotes

1 Please see "Description of Index" on page 6 for a description of the index. Please note that the index does not take into account any fees, expenses or tax consequences of investing in the individual securities that it tracks, and that individuals cannot invest directly in any index. Data about the performance of an index is prepared or obtained by Neuberger Berman Management LLC ("Management") and reflects the reinvestment of income dividends and other distributions, if any. The Fund may invest in securities not included in a described index and may not invest in all securities included in a described index.

2 During the period from August 2012 through January 2013, the Fund was relatively small, which could have impacted performance. The same techniques used to produce returns in a small fund may not work to produce similar returns in a larger fund.

3 The date used to calculate Life of Fund performance for the index is the inception date of the oldest share class.

For more complete information on any of the Neuberger Berman Alternative and Multi-Asset Class Funds, call Management at (800) 877-9700, or visit our website at www.nb.com.

Description of Index

Dow Jones-UBS Commodity Index:

A rolling index composed of futures contracts on 19 physical commodities traded on U.S. exchanges, with the exception of aluminum, nickel and zinc, which are traded on the London Metal Exchange (LME). Weighting is based on liquidity, or the relative amount of trading activity of a particular commodity; dollar-adjusted production data are secondary. All data used are averaged over a five-year period. The DJ-UBSCI is calculated on an excess return basis, reflecting only the return of its underlying commodity price movement. A total return index reflects the return on a fully collateralized investment of the index.

Information About Your Fund's Expenses (Unaudited)

Actual Expenses and Performance:				The first section of the table provides information about actual account values and actual expenses in dollars, based on the Fund's actual performance during the period. You may use the information in this line, together with the amount you invested, to estimate the expenses you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section of the table under the heading entitled "Expenses Paid During the Period" to estimate the expenses you paid over the period.
Hypothetical Example for Comparison Purposes:				The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return at 5% per year before expenses. This return is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in this Fund versus other funds. To do so, compare the expenses shown in this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses in the table are meant to highlight your ongoing costs only and do not include any transaction costs, such as sales charges (loads) (if applicable). Therefore, the information under the heading "Hypothetical (5% annual return before expenses)" is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

Expense Information as of 10/31/13 (Unaudited)

Neuberger Berman Alternative Funds
	ACTUAL									HYPOTHETICAL (5% ANNUAL RETURN BEFORE EXPENSES)⁽²⁾
	Beginning Account Value 5/1/13		Ending Account Value 10/31/13		Expenses Paid During the Period⁽¹⁾ 5/1/13 - 10/31/13		Expense Ratio			Beginning Account Value 5/1/13		Ending Account Value 10/31/13		Expenses Paid During the Period⁽¹⁾ 5/1/13 - 10/31/13		Expense Ratio
Neuberger Risk Balanced Commodity Strategy Fund
Institutional Class	$	1,000.00	$	978.30	$	5.49		1.10	%	$	1,000.00	$	1,019.66	$	5.60		1.10	%
Class A	$	1,000.00	$	976.10	$	7.27		1.46	%	$	1,000.00	$	1,017.85	$	7.43		1.46	%
Class C	$	1,000.00	$	971.60	$	10.98		2.21	%	$	1,000.00	$	1,014.06	$	11.22		2.21	%

⁽¹⁾ For each class, expenses are equal to the annualized expense ratio for the class, including expenses of the Fund's subsidiary (See Note A-1 of Notes to Consolidated Financial Statements) multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown).

⁽²⁾ Hypothetical 5% annual return before expenses is calculated by multiplying the number of days in the most recent period divided by 365.

Consolidated Schedule of Investments Risk Balanced Commodity Strategy Fund

PRINCIPAL AMOUNT			VALUE^†
U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government (14.1%)
$	500,000	U.S. Treasury Notes, 4.25%, due 11/15/13	$	500,762
	250,000	U.S. Treasury Notes, 1.00%, due 5/15/14		251,192
	1,500,000	U.S. Treasury Notes, 1.75%, due 3/31/14		1,510,078
	4,500,000	U.S. Treasury Notes, 1.25%, due 3/15/14		4,518,985
		Total U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government (Cost $6,781,792)		6,781,017
U.S. Government Agency Securities (1.0%)
	250,000	Federal National Mortgage Association, Notes, 0.15%, due 6/20/14		250,078	^µ
	250,000	Federal Farm Credit Banks, Bonds, 0.20%, due 3/13/15		250,001	^µ
		Total U.S. Government Agency Securities (Cost $500,131)		500,079
Asset-Backed Securities (4.6%)
	275,000	Honda Auto Receivables Owner Trust, Ser. 2013-3, Class A2, 0.54%, due 1/15/16		275,424
	665,000	Hyundai Auto Receivables Trust, Ser. 2013-C, Class A2, 0.57%, due 6/15/16		665,547
	480,253	Nelnet Student Loan Trust, Ser. 2006-1, Class A4, 0.35%, due 11/23/22		478,548	^µ
	800,000	World Omni Auto Receivables Trust, Ser. 2013-B, Class A2, 0.48%, due 11/15/16		800,097
		Total Asset-Backed Securities (Cost $2,218,220)		2,219,616
Corporate Debt Securities (43.5%)
Aerospace & Defense (0.8%)
	375,000	United Technologies Corp., Senior Unsecured Notes, 0.53%, due 12/2/13		375,098	^µ
Auto Manufacturers (2.3%)
	520,000	Daimler Finance N.A. LLC, Guaranteed Notes, 6.50%, due 11/15/13		520,883
	540,000	Toyota Motor Credit Corp., Senior Unsecured Medium-Term Notes, 0.64%, due 1/17/14		540,700	^µ
	45,000	Toyota Motor Credit Corp., Senior Unsecured Notes, 0.55%, due 5/17/16		45,102	^µ
				1,106,685
Banks (14.8%)
	190,000	Bank of Montreal, Senior Unsecured Medium-Term Notes, 0.76%, due 7/15/16		190,975	^µ
	700,000	Bank of Nova Scotia, Senior Unsecured Notes, 1.28%, due 1/12/15		708,229	^µ
	300,000	Barclays Bank PLC, Senior Unsecured Notes, 1.28%, due 1/13/14		300,584	^µ
	400,000	Credit Suisse New York, Senior Unsecured Notes, 1.20%, due 1/14/14		400,710	^µ
	350,000	Goldman Sachs Group, Inc., Senior Unsecured Notes, 1.27%, due 2/7/14		350,676	^µ
	865,000	JPMorgan Chase & Co., Senior Unsecured Medium-Term Notes, 0.69%, due 4/23/15		866,714	^µ
	500,000	Mellon Funding Corp., Guaranteed Notes, 0.41%, due 5/15/14		500,213	^µ
	395,000	National Australia Bank Ltd., Senior Unsecured Notes, 0.79%, due 7/25/16		396,081	^µ
	100,000	Rabobank Nederland, Bank Guaranteed Notes, 1.85%, due 1/10/14		100,319
	750,000	Rabobank Nederland, Bank Guaranteed Medium-Term Notes, 0.59%, due 4/14/14		751,145	^µ
	600,000	Royal Bank of Canada, Senior Unsecured Global Medium-Term Notes, 0.94%, due 10/30/14		604,076	^µ
	50,000	Royal Bank of Canada, Senior Unsecured Medium-Term Notes, Ser. 1, 0.54%, due 4/17/14		50,068	^µ
	450,000	Svenska Handelsbanken AB, Senior Unsecured Notes, 0.72%, due 9/23/16		450,905	^µ
	575,000	Wells Fargo & Co., Senior Unsecured Notes, 1.17%, due 6/26/15		581,674	^µ
	850,000	Westpac Banking Corp., Senior Unsecured Notes, 1.01%, due 9/25/15		859,262	^µ
				7,111,631

See Notes to Schedule of Investments

Consolidated Schedule of Investments Risk Balanced Commodity Strategy Fund (cont'd)

PRINCIPAL AMOUNT			VALUE^†
Beverages (1.9%)
$	550,000	Anheuser-Busch InBev Worldwide, Inc., Guaranteed Notes, 0.79%, due 1/27/14	$	550,708	^µ
	35,000	Anheuser-Busch InBev Worldwide, Inc., Guaranteed Notes, 0.60%, due 7/14/14		35,076	^µ
	330,000	Coca-Cola Co., Senior Unsecured Notes, 0.24%, due 3/5/15		329,747	^µ
				915,531
Computers (3.0%)
	455,000	Apple, Inc., Senior Unsecured Notes, 0.29%, due 5/3/16		454,436	^µ
	985,000	International Business Machines Corp., Senior Unsecured Notes, 0.27%, due 7/29/15		984,659	^µ
				1,439,095
Cosmetics—Personal Care (0.3%)
	154,000	Procter & Gamble Co., Senior Unsecured Notes, 0.19%, due 2/6/14		153,970	^µ
Diversified Financial Services (5.9%)
	425,000	American Express Credit Corp., Senior Unsecured Medium-Term Notes, 1.36%, due 6/12/15		431,341	^µ
	84,000	American Express Credit Corp., Senior Unsecured Notes, 1.10%, due 6/24/14		84,401	^µ
	215,000	American Honda Finance Corp., Senior Unsecured Notes, 0.74%, due 10/7/16		215,809	^µ
	1,060,000	General Electric Capital Corp., Senior Unsecured Global Medium-Term Notes, 0.89%, due 7/12/16		1,065,694	^µ
	200,000	General Electric Capital Corp., Senior Unsecured Medium-Term Notes, Ser. A, 0.37%, due 12/20/13		200,042	^µ
	100,000	John Deere Capital Corp., Senior Unsecured Notes, 0.39%, due 4/25/14		100,091	^µ
	510,000	John Deere Capital Corp., Senior Unsecured Notes, 0.37%, due 6/15/15		510,514	^µ
	210,000	John Deere Capital Corp., Senior Unsecured Notes, 0.54%, due 10/11/16		210,248	^µ
				2,818,140
Insurance (0.9%)
	50,000	Berkshire Hathaway Finance Corp., Guaranteed Notes, 0.57%, due 1/10/14		50,038	^µ
	400,000	Berkshire Hathaway, Inc., Senior Unsecured Notes, 0.96%, due 8/15/14		402,335	^µ
				452,373
Machinery—Construction & Mining (0.9%)
	50,000	Caterpillar Financial Services Corp., Senior Unsecured Medium-Term Notes, 0.41%, due 8/27/14		50,071	^µ
	400,000	Caterpillar Financial Services Corp., Senior Unsecured Medium-Term Notes, 0.50%, due 2/26/16		400,288	^µ
				450,359
Media (0.1%)
	65,000	Walt Disney Co., Senior Unsecured Medium-Term Notes, 0.25%, due 2/11/15		65,001	^µ
Mining (0.9%)
	440,000	BHP Billiton Finance USA Ltd., Guaranteed Notes, 0.50%, due 9/30/16		440,513	^µ
Oil & Gas (2.2%)
	565,000	BP Capital Markets PLC, Guaranteed Notes, 0.88%, due 12/6/13		565,359	^µ
	50,000	BP Capital Markets PLC, Guaranteed Notes, 0.86%, due 3/11/14		50,102	^µ
	425,000	Occidental Petroleum Corp., Senior Unsecured Notes, 1.45%, due 12/13/13		425,516
				1,040,977

See Notes to Schedule of Investments

Consolidated Schedule of Investments Risk Balanced Commodity Strategy Fund (cont'd)

PRINCIPAL AMOUNT			VALUE^†
Pharmaceuticals (4.7%)
$	645,000	GlaxoSmithKline Capital, Inc., Guaranteed Notes, 4.38%, due 4/15/14	$	656,380
	105,000	Johnson & Johnson, Senior Unsecured Notes, 0.35%, due 5/15/14		105,101	^µ
	150,000	Johnson & Johnson, Senior Unsecured Notes, 1.20%, due 5/15/14		150,674
	290,000	Merck & Co., Inc., Senior Unsecured Notes, 0.45%, due 5/18/16		290,870	^µ
	1,065,000	Sanofi, Senior Unsecured Notes, 0.56%, due 3/28/14		1,066,507	^µ
				2,269,532
Retail (2.6%)
	378,000	Home Depot, Inc., Senior Unsecured Notes, 5.25%, due 12/16/13		380,111
	450,000	Target Corp., Senior Unsecured Notes, 0.42%, due 7/18/14		450,837	^µ
	425,000	Wal-Mart Stores, Inc., Senior Unsecured Notes, 1.63%, due 4/15/14		427,847
				1,258,795
Telecommunications (2.1%)
	550,000	Cisco Systems, Inc., Senior Unsecured Notes, 0.50%, due 3/14/14		550,638	^µ
	455,000	Verizon Communications, Inc., Senior Unsecured Notes, 0.86%, due 3/28/14		455,785	^µ
				1,006,423
Transportation (0.1%)
	45,000	Canadian National Railway Co., Senior Unsecured Notes, 0.44%, due 11/6/15		44,982	^µØ
		Total Corporate Debt Securities (Cost $20,934,451)		20,949,105
Short-Term Investments (30.1%)
U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government^(a)(19.5%)
	450,000	U.S. Treasury Bills, Disc. Notes, 0.00%, due 11/7/13		449,999
	750,000	U.S. Treasury Bills, Disc. Notes, 0.01%, due 11/21/13		749,989
	400,000	U.S. Treasury Bills, Disc. Notes, 0.01%, due 12/5/13		399,986
	250,000	U.S. Treasury Bills, Disc. Notes, 0.02%, due 12/19/13		249,988
	1,250,000	U.S. Treasury Bills, Disc. Notes, 0.02%, due 12/26/13		1,249,924
	4,525,000	U.S. Treasury Bills, Disc. Notes, 0.02%-0.03%, due 1/9/14		4,524,737
	1,750,000	U.S. Treasury Bills, Disc. Notes, 0.03%, due 1/30/14		1,749,835
				9,374,458
NUMBER OF SHARES
Money Market Fund (10.6%)
	5,130,595	State Street Institutional Government Money Market Fund Institutional Class		5,130,595	^ØØ††
		Total Short-Term Investments (Cost $14,504,850)		14,505,053
		Total Investments (93.3%) (Cost $44,939,444)		44,954,870	^##
		Cash, receivables and other assets, less liabilities (6.7%)		3,225,923	^±
		Total Net Assets (100.0%)	$	48,180,793

See Notes to Schedule of Investments

Notes to Consolidated Schedule of Investments

† In accordance with Accounting Standards Codification ("ASC") 820 "Fair Value Measurements and Disclosures" ("ASC 820"), all investments held by Neuberger Berman Risk Balanced Commodity Strategy Fund (the "Fund") are carried at the value that Neuberger Berman Management LLC ("Management") believes the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment under current market conditions. Various inputs, including the volume and level of activity for the asset or liability in the market, are considered in valuing the Fund's investments, some of which are discussed below. Significant management judgment may be necessary to value investments in accordance with ASC 820.

• Level 1 – quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, amortized cost, etc.)

• Level 3 – significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing an investment are not necessarily an indication of the risk associated with investing in those securities.

The value of the Fund's investments in debt securities is determined by Management primarily by obtaining valuations from independent pricing services based on readily available bid quotations, or if quotations are not available, by methods which include various considerations based on security type (generally Level 2 inputs). In addition to the consideration of yields or prices of securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions, the following is a description of other Level 2 inputs and related valuation techniques used by an independent pricing service to value certain types of debt securities of the Fund:

Asset-Backed Securities. Inputs used to value asset-backed securities generally include models that consider a number of factors, which may include the following: prepayment speeds, cash flows, spread adjustments and Other Market Information.

U.S. Treasury Securities. Inputs used to value U.S. Treasury securities generally include quotes from several inter-dealer brokers and Other Market Information.

U.S. Government Agency Securities. Inputs used to value U.S. Government Agency securities generally include obtaining benchmark quotes and Other Market Information.

The value of commodity futures contracts is determined by obtaining valuations from independent pricing services at the settlement price at the market close (Level 1 inputs).

Management has developed a process to periodically review information provided by independent pricing services for all types of securities.

Investments in money market funds are valued using the fund's daily calculated net asset value per share (Level 2 inputs).

See Notes to Financial Statements

Notes to Consolidated Schedule of Investments (cont'd)

If a valuation is not available from an independent pricing service, or if Management has reason to believe that the valuation received does not represent the amount the Fund might reasonably expect to receive on a current sale in an orderly transaction, the Fund seeks to obtain quotations from principal market makers (generally considered Level 3 inputs). If such quotations are not readily available, the security is valued using methods the Neuberger Berman Alternative Funds' Board of Trustees (the "Board") has approved on the belief that they reflect fair value. Numerous factors may be considered when determining the fair value of a security based on Level 2 or 3 inputs, including available analyst, media or other reports, trading in futures or American Depositary Receipts ("ADRs") and whether the issuer of the security being fair valued has other securities outstanding.

Fair value prices are necessarily estimates, and there is no assurance that such a price will be at or close to the price at which the security is next quoted or next trades.

The following is a summary, categorized by Level, of inputs used to value the Fund's investments as of October 31, 2013:

Asset Valuation Inputs
	Level 1		Level 2		Level 3		Total
Investments:
U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government	$	—	$	6,781,017	$	—	$	6,781,017
U.S. Government Agency Securities		—		500,079		—		500,079
Asset-Backed Securities		—		2,219,616		—		2,219,616
Corporate Debt Securities^		—		20,949,105		—		20,949,105
Short-Term Investments^		—		14,505,053		—		14,505,053
Total Investments	$	—	$	44,954,870	$	—	$	44,954,870

^ The Consolidated Schedule of Investments provides information on the industry categorization for the portfolio.

The following is a summary, categorized by Level, of inputs used to value the Fund's derivatives as of October 31, 2013:

	Level 1			Level 2		Level 3		Total
Futures Contracts (unrealized appreciation)	$	639,652		$	—	$	—	$	639,652
Liability Valuation Inputs
	Level 1			Level 2		Level 3		Total
Futures Contracts (unrealized depreciation)	$	(878,082	)	$	—	$	—	$	(878,082	)

## At October 31, 2013, the cost of investments for U.S. federal income tax purposes was $44,939,444. Gross unrealized appreciation of investments was $18,749 and gross unrealized depreciation of investments was $3,323, resulting in net unrealized appreciation of $15,426 based on cost for U.S. federal income tax purposes.

Ø All or a portion of this security was purchased on a when-issued basis. At October 31, 2013, these securities amounted to $44,982.

ØØ All or a portion of this security is segregated in connection with obligations for commodity futures contracts and when-issued security purchase commitments.

†† A portion of this security is held by Neuberger Berman Cayman Commodity Fund I Ltd., (the "Subsidiary") a wholly-owned subsidiary of the Fund. See Note A-1 of the Notes to Consolidated Financial Statements.

(a) Interest rate represents discount rate at time of purchase, not a coupon rate.

µ Floating rate securities are securities whose yields vary with a designated index or market rate. These securities are shown at their current rates as of October 31, 2013, and their final maturity dates.

± See Note A-11 in the Notes to Consolidated Financial Statements for the Fund's or Subsidiary's open positions in derivatives at October 31, 2013.

See Notes to Financial Statements

Consolidated Statement of Assets and Liabilities*

Neuberger Berman Alternative Funds
	RISK BALANCED COMMODITY STRATEGY FUND
	October 31, 2013
Assets
Investments in securities, at value** (Notes A)—see Schedule of Investments:
Unaffiliated issuers	$	44,954,870
Cash		1,000,000
Deposits with brokers for futures contracts (Note A-11)		2,825,540
Dividends and interest receivable		61,385
Receivable for Fund shares sold		60,511
Receivable from Management—net (Note B)		7,349
Prepaid expenses and other assets		26,643
Total Assets		48,936,298
Liabilities
Payable for securities purchased		45,000
Payable for Fund shares redeemed		13,386
Payable for variation margin (Note A-11)		536,621
Payable to investment manager—net (Note B)		28,719
Payable to trustees		2,525
Accrued expenses and other payables		129,254
Total Liabilities		755,505
Net Assets	$	48,180,793
Net Assets consist of:
Paid-in capital	$	48,579,787
Undistributed net investment income (loss)		(175,990	)
Net unrealized appreciation (depreciation) in value of investments		(223,004	)
Net Assets	$	48,180,793
Net Assets
Institutional Class	$	9,563,396
Class A		35,036,791
Class C		3,580,606
Shares Outstanding ($.001 par value; unlimited shares authorized)
Institutional Class		1,061,917
Class A		3,907,913
Class C		403,030
Net Asset Value, offering and redemption price per share
Institutional Class	$	9.01
Net Asset Value and redemption price per share
Class A	$	8.97
Offering Price per share
Class A‡	$	9.52
Net Asset Value and offering price per share
Class C^	$	8.88
**Cost of Investments	$	44,939,444

‡ On single retail sales of less than $50,000. On sales of $50,000 or more or in certain other circumstances described in the Fund's prospectus, offering price is reduced.

^ Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.

* See Notes A-1 and A-2 of the Notes to Consolidated Financial Statements.

See Notes to Financial Statements

Consolidated Statement of Operations*

Neuberger Berman Alternative Funds
	RISK BALANCED COMMODITY STRATEGY FUND
	For the Year Ended October 31, 2013
Investment Income:
Income (Note A):
Interest income—unaffiliated issuers	$	33,095
Foreign taxes withheld		(26	)
Total income	$	33,069
Expenses:
Investment management fees (Note B)		130,544
Administration fees (Note B)		11,189
Administration fees (Note B):
Institutional Class		6,616
Class A		20,187
Class C		2,411
Distribution fees (Note B):
Class A		25,233
Class C		12,055
Shareholder servicing agent fees:
Institutional Class		748
Class A		1,959
Class C		1,468
Subsidiary administration fees (Note B)		50,034
Audit fees		85,600
Custodian and accounting fees		51,302
Insurance expense		142
Legal fees		177,764
Registration and filing fees		76,029
Shareholder reports		8,990
Trustees' fees and expenses		45,241
Miscellaneous		4,904
Total expenses		712,416
Expenses reimbursed by Management (Note B)		(457,456	)
Expenses reduced by custodian fee expense offset arrangement (Note A-13)		(2	)
Total net expenses		254,958
Net investment income (loss)	$	(221,889	)
Realized and Unrealized Gain (Loss) on Investments (Note A):
Net realized gain (loss) on:
Sales of investment securities of unaffiliated issuers		1,726
Commodity futures contracts		26,297
Change in net unrealized appreciation (depreciation) in value of:
Unaffiliated investment securities		15,341
Commodity futures contracts		(202,854	)
Net gain (loss) on investments		(159,490	)
Net increase (decrease) in net assets resulting from operations	$	(381,379	)

* See Notes A-1 and A-2 of the Notes to Consolidated Financial Statements.

See Notes to Financial Statements

Consolidated Statements of Changes in Net Assets*

Neuberger Berman Alternative Funds

	RISK BALANCED COMMODITY STRATEGY FUND
	Year Ended October 31, 2013			Period from August 27, 2012 (Commencement of Operations) to October 31, 2012
Increase (Decrease) in Net Assets:
From Operations (Note A):
Net investment income (loss)	$	(221,889	)	$	(9,258	)
Net realized gain (loss) on investments		28,023			(52,003	)
Change in net unrealized appreciation (depreciation) of investments		(187,513	)		(35,491	)
Net increase (decrease) in net assets resulting from operations		(381,379	)		(96,752	)
From Fund Share Transactions (Note D):
Proceeds from shares sold:
Institutional Class		11,363,372			5,069,219
Class A		38,040,599			129,263
Class C		3,611,986			100,000
Payments for shares redeemed:
Institutional Class		(6,261,561	)		—
Class A		(3,247,163	)		—
Class C		(146,791	)		—
Net increase (decrease) from Fund share transactions		43,360,442			5,298,482
Net Increase (Decrease) in Net Assets		42,979,063			5,201,730
Net Assets:
Beginning of year		5,201,730			—
End of year	$	48,180,793		$	5,201,730
Undistributed net investment income (loss) at end of year	$	(175,990	)	$	(775	)

* See Notes A-1 and A-2 of the Notes to Consolidated Financial Statements.

See Notes to Financial Statements

Notes to Consolidated Financial Statements Risk Balanced Commodity Strategy Fund

Note A—Summary of Significant Accounting Policies:

The assets of the Fund belong only to the Fund, and the liabilities of the Fund are borne solely by the Fund and no other.

The Fund invests in commodity-related instruments through the Subsidiary, which is organized under the laws of the Cayman Islands. Subscription agreements were entered into between the Fund and the Subsidiary with the intent that the Fund will remain the sole shareholder of the Subsidiary. The Subsidiary is governed by its own Board of Directors.

As of October 31, 2013, the value of the Fund's investment in the Subsidiary was as follows:

Investment in Subsidiary				Percentage of Net Assets
$	7,833,888				16.3	%

2 Consolidation: The accompanying financial statements of the Fund present the consolidated accounts of the Fund and the Subsidiary. All intercompany accounts and transactions have been eliminated in consolidation.

3 Portfolio valuation: Investment securities are valued as indicated in the notes following the Schedule of Investments.

4 Foreign currency translation: The accounting records of the Fund and Subsidiary are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars using the exchange rate as of 4:00 p.m., Eastern time, to determine the value of investments, other assets and liabilities. Purchase and sale prices of securities, and income and expenses, are translated into U.S. dollars at the prevailing rate of exchange on the respective dates of such transactions. Net unrealized foreign currency gain (loss), if any, arises from changes in the value of assets and liabilities, other than investments in securities, as a result of changes in exchange rates and is stated separately in the Consolidated Statement of Operations.

5 Securities transactions and investment income: Securities transactions are recorded on trade date for financial reporting purposes. Dividend income is recorded on the ex-dividend date or, for certain foreign dividends, as soon as the Fund becomes aware of the dividends. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, including accretion of discount (adjusted for original issue discount, where applicable) and amortization of premium, where applicable, is recorded on the accrual basis. Realized gains and losses from securities transactions and foreign currency transactions, if any, are recorded on the basis of identified cost and stated separately in the Consolidated Statement of Operations.

6 Income tax information: It is the policy of the Fund to continue to qualify for treatment as a regulated investment company by complying with the requirements of the U.S. Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its net investment income and net realized capital gains to its shareholders. To the extent the Fund distributes substantially all of its net investment income and net realized capital gains to shareholders, no federal income or excise tax provision is required.

The Fund has adopted the provisions of ASC 740 "Income Taxes" ("ASC 740"). ASC 740 sets forth a minimum threshold for financial statement recognition of a tax position taken, or expected to be taken, in a tax return. The Fund recognizes interest and penalties, if any, related to unrecognized tax positions as an income tax expense in the Consolidated Statement of Operations. The Fund is subject to examination by U.S. federal and state tax authorities for returns filed for the prior fiscal period. As of October 31, 2013, the Fund did not have any unrecognized tax positions.

The Subsidiary is a controlled foreign corporation under the U.S. Internal Revenue Code. As a U.S. shareholder of a controlled foreign corporation, the Fund will include in its gross income its share of the Subsidiary's current earnings and profits (including net realized gains). Any deficit generated by the Subsidiary will be disregarded for purposes of computing the Fund's gross income in the current period and also disregarded for all future periods.

Income distributions and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatments of income and gains on various investment securities held by the Fund, timing differences and differing characterization of distributions made by the Fund. The Fund may also utilize earnings and profits distributed to shareholders on redemption of shares as a part of the dividends-paid deduction for income tax purposes.

As determined on October 31, 2013, permanent differences resulting primarily from different book and tax accounting were reclassified at year end. Such differences may be attributed to one or more of the following: net operating losses, non-deductible Rule 12b-1 fees, ordinary loss netting to reduce short term capital gains and Subsidiary income, gain (loss) and expense adjustments. These reclassifications had no effect on net income, net asset value ("NAV") or NAV per share of the Fund. For the year ended October 31, 2013, the Fund recorded the following permanent reclassifications:

Paid-in Capital				Undistributed Net Investment Income (Loss)				Accumulated Net Realized Gains (Losses) on Investments
$	(18,651	)		$	46,674			$	(28,023	)

For tax purposes, distributions of short-term gains are taxable to shareholders as ordinary income.

As of October 31, 2013, the components of distributable earnings (accumulated losses) on a U.S. federal income tax basis were as follows:

Undistributed Ordinary Income				Unrealized Appreciation (Depreciation)				Loss Carryforwards and Deferrals				Other Temporary Differences				Total
$	—			$	15,426			$	(175,267	)		$	(239,153	)		$	(398,994	)

The difference between book basis and tax basis distributable earnings is primarily due to organizational expenses.

To the extent the Fund's net realized capital gains, if any, can be offset by capital loss carryforwards, it is the policy of the Fund not to distribute such gains. For taxable years beginning after December 22, 2010, the capital loss carryforward rules allow for regulated investment companies to carry forward capital losses indefinitely and to retain the character of capital loss carryforwards as short-term or long-term. As determined at October 31, 2013,

the Fund had unused capital loss carryforwards available for federal income tax purposes to offset net realized capital gains, if any, as follows:

Late-Year Ordinary Loss Deferral
$	175,267

7 Distributions to shareholders: The Fund may earn income, net of expenses, daily on its investments. Distributions from net investment income and net realized capital gains, if any, generally are distributed once a year (usually in December) and are recorded on the ex-date.

8 Foreign taxes: Foreign taxes, if any, withheld, if any, represent amounts withheld by foreign tax authorities, net of refunds recoverable.

9 Expense allocation: Certain expenses are applicable to multiple funds. Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a particular series of the Trust (e.g., the Fund) are allocated among the series of the Trust, on the basis of relative net assets, except where a more appropriate allocation of expenses to each of the series can otherwise be made fairly. Expenses borne by the complex of related investment companies, which includes open-end and closed-end investment companies for which Management serves as investment manager, that are not directly attributable to a particular investment company in the complex (e.g., the Trust) or series thereof are allocated among the investment companies in the complex or series thereof, on the basis of relative net assets, except where a more appropriate allocation of expenses to each of the investment companies in the complex or series thereof can otherwise be made fairly. The Fund's expenses (other than those specific to each class) are allocated proportionally each day among the classes based upon the relative net assets of each class.

11 Derivative instruments: During the year ended October 31, 2013, the Fund's use of derivatives was limited to commodity futures contracts. The Fund has adopted the provisions of ASC 815 "Derivatives and Hedging" ("ASC 815"). The disclosure requirements of ASC 815 distinguish between derivatives that qualify for hedge accounting and those that do not. Because investment companies value their derivatives at fair value and recognize changes in fair value through the Consolidated Statement of Operations, they do not qualify for hedge accounting. Accordingly, even though the Fund's investments in derivatives may represent economic hedges, they are considered non-hedge transactions for purposes of this disclosure.

Commodity futures contracts: During the year ended October 31, 2013, the Fund entered into commodity futures contracts (through investments in the Subsidiary) to provide investment exposure to individual commodities, as well as to manage and/or adjust the risk profile of the Fund.

At the time the Fund or Subsidiary enters into a commodity futures contract, it is required to deposit with the futures commission merchant a specified amount of cash or liquid securities, known as "initial margin," which is a percentage of the value of the commodity futures contract being traded that is set by the exchange upon which the futures contract is traded. Each day, the futures contract is valued at the official settlement price of the board of trade or U.S. commodity exchange on which such futures contract is traded. Subsequent payments, known as "variation margin," to and from the broker are made on a daily basis as the market price of the commodity futures

contract fluctuates. Daily variation margin adjustments, arising from this "mark to market," are recorded by the Fund or Subsidiary as unrealized gains or losses.

Although some commodity futures contracts by their terms call for actual delivery or acquisition of the underlying securities or currency, in most cases the contracts are closed out prior to delivery by offsetting purchases or sales of matching commodity futures contracts. When the contracts are closed, the Fund or Subsidiary recognizes a gain or loss. Risks of entering into futures contracts include the possibility there may be an illiquid market, possibly at a time of rapidly declining prices, and/or a change in the value of the contract may not correlate with changes in the value of the underlying securities. Futures executed on regulated futures exchanges have minimal counterparty risk to a fund because the exchange's clearinghouse assumes the position of the counterpary in each transaction. Thus, the Fund is exposed to risk only in connection with the clearinghouse and not in connection with the original counterpary to the transaction.

For U.S. federal income tax purposes, the futures transactions undertaken by the Fund or Subsidiary may cause the Fund or Subsidiary to recognize gains or losses from marking contracts to market even though its positions have not been sold or terminated, may affect the character of the gains or losses recognized as long-term or short-term, and may affect the timing of some capital gains and losses realized by the Fund or Subsidiary. Also, the Fund's or Subsidiary's losses on transactions involving futures contracts may be deferred rather than being taken into account currently in calculating the Fund's or Subsidiary's taxable income.

At October 31, 2013, open positions in commodity futures contracts⁽¹⁾ were:

Expiration

Open Contracts

Position

Unrealized
Appreciation
(Depreciation)

November 2013

35 Lead

Long

76,800

November 2013

16 Nickel

Long

53,836

November 2013

42 Premium High Grade Aluminum

Long

(28,848

)

November 2013

46 Zinc

Long

28,420

December 2013

38 Lead

Long

(561

)

December 2013

20 Nickel

Long

83,608

December 2013

43 Premium High Grade Aluminum

Long

7,569

December 2013

40 Zinc

Long

22,199

January 2014

29 Cattle Feeder

Long

(3,475

)

January 2014

37 Lead

Long

66,028

January 2014

20 Nickel

Long

72,868

January 2014

11 Platinum

Long

(42,435

)

January 2014

46 Premium High Grade Aluminum

Long

2,889

January 2014

46 Zinc

Long

28,695

February 2014

32 Gas Oil

Long

(21,031

)

February 2014

22 Gasoline RBOB

Long

(20,683

)

February 2014

23 Gold 100 Oz.

Long

(42,163

)

February 2014

37 Lead

Long

(6,478

)

February 2014

38 Lean Hogs

Long

35,169

February 2014

36 Live Cattle

Long

10,717

February 2014

36 Natural Gas

Long

(22,795

)

February 2014

20 New York Harbor ULSD

Long

(19,207

)

February 2014

17 Nickel

Long

381

Expiration

Open Contracts

Position

Unrealized
Appreciation
(Depreciation)

February 2014

41 Premium High Grade Aluminum

Long

(19,028

)

February 2014

31 WTI Crude

Long

4,083

February 2014

42 Zinc

Long

(5,842

)

March 2014

32 Brent Crude Oil

Long

(18,832

)

March 2014

25 Cocoa

Long

15,164

March 2014

15 Coffee 'C'

Long

(43,093

)

March 2014

26 Copper

Long

(16,571

)

March 2014

25 Cotton No. 2

Long

(81,570

)

March 2014

109 Corn

Long

(149,850

)

March 2014

14 Silver

Long

2,887

March 2014

36 Soybean

Long

(18,350

)

March 2014

17 Soybean Meal

Long

(7,200

)

March 2014

19 Soybean Oil

Long

(3,032

)

March 2014

51 Sugar 11

Long

78,633

March 2014

40 Wheat

Long

(14,634

)

March 2014

44 Wheat

Long

25,860

November 2013

35 Lead

Short

(493

)

November 2013

16 Nickel

Short

(67,802

)

November 2013

425 Premium High Grade Aluminum

Short

(12,373

)

November 2013

46 Zinc

Short

(31,074

)

December 2013

38 Lead

Short

(68,842

)

December 2013

20 Nickel

Short

(73,352

)

December 2013

43 Premium High Grade Aluminum

Short

(4,975

)

December 2013

40 Zinc

Short

(27,689

)

January 2014

37 Lead

Short

1,196

January 2014

20 Nickel

Short

(5,804

)

January 2014

46 Premium High Grade Aluminum

Short

21,006

January 2014

46 Zinc

Short

1,644

(238,430

)

(1) Commodity futures are held by the Subsidiary. See Note A-1 of the Notes to Financial Statements.

During the year ended October 31, 2013, the average notional value of commodity futures contracts was $25,691,142 for long positions and $(6,874,528) for short positions.

The notional value of commodity futures contracts at October 31, 2013 was $71,705,900 for long positions and $(23,305,339) for short positions.

At October 31, 2013, the Fund had deposited $2,825,540 in a segregated account to cover margin requirements on open futures contracts.

At October 31, 2013, the Fund had the following derivatives (which did not qualify as hedging instruments under ASC 815), grouped by primary risk exposure:

Asset Derivatives

	Commodity Risk		Consolidated Statement of Assets and Liabilities Location
Futures Contracts	$	639,652	Receivable/Payable for
Total Value	$	639,652	variation margin⁽¹⁾

Liability Derivatives

	Commodity Risk			Consolidated Statement of Assets and Liabilities Location
Futures Contracts	$	(878,082	)	Receivable/Payable for
Total Value	$	(878,082	)	variation margin⁽¹⁾

(1) "Futures Contracts" reflects the cumulative appreciation (depreciation) of futures contracts as of October 31, 2013, which is reflected in the Consolidated Statement of Assets and Liabilities under the caption "Net unrealized appreciation (depreciation) in value of investments." The outstanding variation margin as of October 31, 2013, if any, is reflected in the Consolidated Statement of Assets and Liabilities under the caption "Receivable/Payable for variation margin."

The impact of the use of these derivative instruments on the Consolidated Statement of Operations during the year ended October 31, 2013, was as follows:

Realized Gain (Loss)
	Commodity Risk		Consolidated Statement of Operations Location
Futures Contracts	$	26,297	Net realized gain (loss) on: commodity
Total Realized Gain (Loss)	$	26,297	futures contracts

Change in Appreciation (Depreciation)

	Commodity Risk
Futures Contracts	$	(202,854	)	Change in net unrealized appreciation (depreciation) in value of:
Total Change in Appreciation (Depreciation)	$	(202,854	)	commodity futures contracts

12 Indemnifications: Like many other companies, the Trust's organizational documents provide that its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, both in some of its principal service contracts and in the normal course of its business, the Trust enters into contracts that provide indemnifications to other parties for certain types of losses or liabilities. The Trust's maximum exposure under these arrangements is unknown as this could involve future claims against the Trust.

13 Expense offset arrangement: Prior to January 1, 2013, the Fund had an expense offset arrangement in connection with its custodian contract. For the year ended October 31, 2013, the impact of this arrangement was a reduction of expenses of $2.

14 Other: All net investment income and realized and unrealized capital gains and losses of the Fund are allocated, on the basis of relative net assets, pro rata among its respective classes.

Note B—Management Fees, Administration Fees, Distribution Arrangements, and Other Transactions with Affiliates:

Management also serves as investment adviser to the Subsidiary. For such investment management services, the Subsidiary pays Management a fee at the annual rate of 0.70% of the first $250 million of the Subsidiary's average daily net assets, 0.675% of the next $250 million, 0.65% of the next $250 million, 0.625% of the next $250 million, 0.60% of the next $500 million, 0.575% of the next $2.5 billion and 0.55% of average daily net assets in excess of $4 billion. Accordingly, for the year ended October 31, 2013, the management fee pursuant to the Management Agreement was equivalent to an annual effective rate of 0.70% of the Subsidiary's average daily net assets.

The Fund retains Management as its administrator under an Administration Agreement. The Fund pays Management an administration fee at the annual rate of 0.06% of its average daily net assets under this agreement. In addition, the Fund's Institutional Class pays Management an administration fee at the annual rate of 0.09% of its average daily net assets under this agreement and the Fund's Class A and Class C pays Management an administration fee at the annual rate of 0.20% of its average daily net assets under this agreement. Additionally, Management retains State Street Bank and Trust Company ("State Street") as its sub-administrator under a Sub-Administration Agreement. Management pays State Street a fee for all services received under this agreement. The Subsidiary also retains Management as its administrator, and State Street as its sub-administrator.

Management has contractually agreed to waive current payment of fees and/or reimburse certain expenses of the Institutional Class, Class A and Class C of the Fund so that the total annual operating expenses of those classes do not exceed the expense limitations as detailed in the following table. These undertakings apply to the Fund's direct expenses and exclude interest, taxes, brokerage commissions, acquired fund fees and expenses, extraordinary expenses, and dividend and interest expenses relating to short sales, if any; consequently, net expenses may exceed the contractual expense limitations. The Fund has agreed that each of its respective classes will repay Management for fees and expenses waived or reimbursed for that class provided that repayment does not cause that class' annual operating expenses to exceed its contractual expense limitation at the time the fees and expenses were waived or reimbursed. Any such repayment must be made within three years after the year in which Management incurred the expense. The expenses of the Subsidiary are included in the total expenses used to calculate the reimbursement, which the Fund has agreed to share with the Subsidiary. For the year ended October 31, 2013, these Subsidiary expenses amounted to $122,786.

During the year ended October 31, 2013, there was no repayment to Management under this agreement.

At October 31, 2013, contingent liabilities to Management under the agreement were as follows:

					Expenses Reimbursed In Fiscal Period Ending, October 31,
					2012			2013
					Subject to Repayment until October 31,
	Contractual Expense Limitation⁽¹⁾			Expiration	2015			2016
Institutional Class		1.10	%	10/31/16	$	518,969	⁽²⁾	$	190,694
Class A		1.46	%	10/31/16		13,769	⁽²⁾		236,827
Class C		2.21	%	10/31/16		12,521	⁽²⁾		29,935

(1) Expense limitation per annum of the respective class's average daily net assets.

(2) Period from August 27, 2012 (Commencement of Operations) to October 31, 2012.

Neuberger Berman Fixed Income LLC ("NBFI"), as the sub-adviser to the Fund and the Subsidiary, is retained by Management to provide day-to-day investment management services and receives a monthly fee paid by Management. As investment manager, Management is responsible for overseeing the investment activities of NBFI. Several individuals who are officers and/or Trustees of the Trust are also employees of NBFI, Neuberger Berman LLC ("Neuberger") and/or Management.

Management and NBFI are indirect subsidiaries of Neuberger Berman Group LLC (("NBG") and together with its consolidated subsidiaries ("NB Group")). NBSH Acquisition, LLC ("NBSH" and together with NBG, the "NB Parties"), which is owned by portfolio managers, members of the NB Group management team and certain of NB Group's key employees, senior professionals, and certain of their permitted transferees, owns, as of September 30, 2013, approximately 76% of NBG's equity, and Lehman Brothers Holdings Inc. ("LBHI") and certain of its subsidiaries (collectively the "LBHI Parties") own the remaining 24% of such equity. Pursuant to agreements among the NB Parties and the LBHI Parties, as well as the issuance of NBSH equity to employees with respect to their previously made equity elections relating to 2013 compensation, it is expected that NBSH will own 81% of NBG's equity as of January 1, 2014. NBG has the opportunity to continue to redeem the remaining NBG equity held by the LBHI Parties through a process that is expected to end in 2016.

The Fund also has a distribution agreement with Management with respect to each class of shares. Management acts as agent in arranging for the sale of class shares without sales commission or other compensation, except as described below for Class A and Class C shares, and bears advertising and promotion expenses.

However, Management receives fees from Class A and Class C under their distribution plans (each a "Plan", collectively the "Plans") pursuant to Rule 12b-1 under the 1940 Act. The Plans provide that, as compensation for administrative and other services provided to these classes, Management's activities and expenses related to the sale and distribution of these classes of shares, and ongoing services provided to investors in these classes, Management receives from each of these classes a fee at the annual rate of 0.25% of Class A's and 1.00% of Class C's average daily net assets. Management receives this amount to provide distribution and shareholder servicing for these classes and pays a portion of it to institutions that provide such services. Those institutions may use the payments for, among other purposes, compensating employees engaged in sales and/or shareholder servicing. The amount of fees paid by each class during any year may be more or less than the cost of distribution and other services provided to that class. FINRA rules limit the amount of annual distribution fees that may be paid by a mutual fund and impose a ceiling on the cumulative distribution fees paid. The Trust's Plans comply with those rules.

Class A shares are generally sold with an initial sales charge of up to 5.75% and no contingent deferred sales charge ("CDSC"), except that a CDSC of 1.00% applies to certain redemptions made within 18 months following purchases of $1 million or more without an initial sales charge. Class C shares are sold with no initial sales charge and a 1.00% CDSC if shares are sold within one year after purchase.

	Underwriter				Broker-Dealer
	Net Initial Sales Charges		CDSC		Net Initial Sales Charges		CDSC
Class A	$	248	$	—	$	—	$	—
Class C		—		548		—		—

Note C—Securities Transactions:

During the year ended October 31, 2013, there were purchase and sale transactions (excluding commodity futures contracts and short-term investments) of $14,477,065 and $195,345, respectively.

Note D—Fund Share Transactions:

Share activity for the year ended October 31, 2013 and for the period ended October 31, 2012 was as follows:

	For the Year Ended October 31, 2013							For the Period Ended October 31, 2012⁽¹⁾
	Shares Sold		Shares Redeemed			Total		Shares Sold		Total
Institutional Class		1,230,011		(673,603	)		556,408		505,509		505,509
Class A		4,253,041		(358,029	)		3,895,012		12,901		12,901
Class C		409,240		(16,210	)		393,030		10,000		10,000

(1) Period from August 27, 2012 (Commencement of Operations) to October 31, 2012.

At October 31, 2013, the Neuberger Dynamic Real Return Fund, which is also managed by Management, held 7.7% of the outstanding shares of the Fund.

Note E—Line of Credit:

At October 31, 2013, the Fund was a participant in a single committed, unsecured $300,000,000 line of credit with State Street, to be used only for temporary or emergency purposes. Other investment companies managed by Management also participate in this line of credit on the same terms. Interest is charged on borrowings under this line of credit at the higher of (a) the Federal Funds Rate plus 1.25% per annum or (b) the Overnight LIBOR Rate plus 1.25% per annum. A commitment fee of 0.10% per annum of the unused portion of the available line of credit is charged, of which each participating Fund has agreed to pay its pro rata share, based on the ratio of its individual net assets to the net assets of all participants at the time the fee is due and payable. The fee is paid quarterly in arrears. Because several mutual funds participate, there is no assurance that an individual Fund will have access to all or any part of the $300,000,000 at any particular time. There were no loans outstanding pursuant to this line of credit at October 31, 2013. During the year ended October 31, 2013, the Fund did not utilize this line of credit.

At October 31, 2013, the Fund was a participant in a single uncommitted, unsecured $100,000,000 line of credit with State Street, to be used only for temporary or emergency purposes. Other investment companies managed by Management also participate in this line of credit on the same terms. Interest is charged on borrowings under this line of credit at a variable rate per annum as determined and quoted by State Street at the time a Fund requests a loan. Because several mutual funds participate, there is no assurance that an individual Fund will have access to all or any part of the $100,000,000 at any particular time. There were no loans outstanding pursuant to this line of

credit at October 31, 2013. During September (inception of line of credit) and October 2013, the Fund did not utilize this line of credit.

Note F—Recent Accounting Pronouncements:

In June 2013, FASB issued Accounting Standards Update 2013-08 Financial Services—Investment Companies (Topic 946)—Amendments to the Scope, Measurement, and Disclosure Requirements ("ASU 2013-08"). Effective for interim and annual reporting period in fiscal years that begin after December 15, 2013, ASU 2013-08 sets forth a methodology for determining whether an entity should be characterized as an investment company and prescribes fair value accounting for an investment company's non-controlling ownership interest in another investment company. FASB has determined that a fund registered under the 1940 Act automatically meets ASU 2013-08's criteria for an investment company. Although still evaluating the potential impact of ASU 2013-08 on the Fund's financial statements, Management expects that the impact will be limited to additional financial statement disclosures.

Consolidated Financial Highlights

The following table includes selected data for a share outstanding throughout each period and other performance information derived from the Consolidated Financial Statements. Per share amounts that round to less than $0.01 or $(0.01) per share are presented as $0.00 or $(0.00) respectively. Net Asset amounts with a zero balance may reflect actual amounts rounding to less than $0.1 million. A "—" indicates that the line item was not applicable in the corresponding period.

	Net Asset Value, Beginning of Year		Net Investment Income (Loss)^@			Net Gains or Losses on Securities (both realized and unrealized)			Total From Investment Operations			Dividends from Net Investment Income		Distributions from Net Realized Capital Gains		Total Distributions
Risk Balanced Commodity Strategy Fund
Institutional Class
10/31/2013	$	9.84	$	(0.09	)	$	(0.74	)	$	(0.83	)	$	—	$	—	$	—
Period from 8/27/2012^ to 10/31/2012	$	10.00	$	(0.02	)	$	(0.14	)	$	(0.16	)	$	—	$	—	$	—
Class A
10/31/2013	$	9.84	$	(0.12	)	$	(0.75	)	$	(0.87	)	$	—	$	—	$	—
Period from 8/27/2012^ to 10/31/2012	$	10.00	$	(0.03	)	$	(0.13	)	$	(0.16	)	$	—	$	—	$	—
Class C
10/31/2013	$	9.83	$	(0.18	)	$	(0.77	)	$	(0.95	)	$	—	$	—	$	—
Period from 8/27/2012^ to 10/31/2012	$	10.00	$	(0.04	)	$	(0.13	)	$	(0.17	)	$	—	$	—	$	—

See Notes to Financial Highlights

	Net Asset Value, End of Year		Total Return^††			Net Assets, End of Year (in millions)		Ratio of Gross Expenses to Average Net Assets^#			Ratio of Net Expenses to Average Net Assets			Ratio of Net Investment Income/ (Loss) to Average Net Assets			Portfolio Turnover Rate
Risk Balanced Commodity Strategy Fund
Institutional Class
10/31/2013	$	9.01		(8.43	)%	$	9.6		3.69	%		1.10	%		(.94	)%		5	%
Period from 8/27/2012^ to 10/31/2012	$	9.84		(1.60	)%**	$	5.0		25.60	%*^‡		1.10	%*^‡		(.99	)%*^‡		0	%**
Class A
10/31/2013	$	8.97		(8.84	)%	$	35.0		3.81	%		1.46	%		(1.27	)%		5	%
Period from 8/27/2012^ to 10/31/2012	$	9.84		(1.60	)%**	$	0.1		33.04	%*^‡		1.46	%*^‡		(1.36	)%*^‡		0	%**
Class C
10/31/2013	$	8.88		(9.66	)%	$	3.6		4.69	%		2.21	%		(2.03	)%		5	%
Period from 8/27/2012^ to 10/31/2012	$	9.83		(1.70	)%**	$	0.1		35.12	%*^‡		2.21	%*^‡		(2.11	)%*^‡		0	%**

Notes to Consolidated Financial Highlights

†† Total return based on per share NAV reflects the effects of changes in NAV on the performance of the Fund during each fiscal period. Returns assume income dividends and other distributions, if any, were reinvested, but do not reflect the effect of sales charges. Results represent past performance and do not indicate future results. Current returns may be lower or higher than the performance data quoted. Investment returns and principal may fluctuate and shares when redeemed may be worth more or less than original cost. Total return would have been lower if Management had not reimbursed and/or waived certain expenses.

# Represents the annualized ratios of net expenses to average daily net assets if Management had not reimbursed certain expenses and/or waived a portion of the investment management fee.

@ Calculated based on the average number of shares outstanding during each fiscal period.

^ The date investment operations commenced.

‡ Organization expense, which is a non-recurring expense, is included in these ratios on a non-annualized basis.

* Annualized.

** Not annualized.

Report of Independent Registered Public Accounting Firm

To the Board of Trustees Neuberger Berman Alternative Funds
and Shareholders of Neuberger Berman Risk Balanced Commodity Strategy Fund

We have audited the accompanying consolidated statements of assets and liabilities of Neuberger Berman Risk Balanced Commodity Strategy Fund, one of the series constituting the Neuberger Berman Alternative Funds, (the "Fund"), including the consolidated schedules of investments, as of October 31, 2013, and the related consolidated statements of operations for the year then ended, the consolidated statements of changes in net assets, and the consolidated financial highlights for each of the periods indicated therein. These consolidated financial statements and consolidated financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these consolidated financial statements and consolidated financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements and consolidated financial highlights are free of material misstatement. We were not engaged to perform an audit of the Fund's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements and consolidated financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2013, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements and consolidated financial highlights referred to above present fairly, in all material respects, the consolidated financial position of Neuberger Berman Risk Balanced Commodity Strategy Fund, a series of Neuberger Berman Alternative Funds, at October 31, 2013, and the consolidated results of its operations for the year then ended, the consolidated changes in its net assets, and the financial highlights for each of the periods indicated therein, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts
December 20, 2013

Directory

Investment Manager, Administrator and Distributor

Neuberger Berman Management LLC
605 Third Avenue, 2nd Floor
New York, NY 10158-0180
800.877.9700 or 212.476.8800
Intermediary Client Services 800.366.6264

Sub-Adviser

Neuberger Berman Fixed Income LLC
190 South LaSalle Street
Chicago, IL 60603

Custodian and Shareholder Servicing Agent

State Street Bank and Trust Company
2 Avenue de Lafayette
Boston, MA 02111

For Institutional Class Shareholders
Address correspondence to:

Neuberger Berman Management LLC
605 Third Avenue, Mail Drop 2-7
New York, NY 10158-0180
Attn: Intermediary Client Services
800.366.6264

For Class A and Class C Shareholders:

Please contact your investment provider

Legal Counsel

K&L Gates LLP
1601 K Street, NW
Washington, DC 20006

Independent Registered Public Accounting Firms

Ernst & Young LLP
200 Clarendon Street
Boston, MA 02116

Trustees and Officers

The following tables set forth information concerning the trustees ("Trustees") and officers ("Officers") of the Fund. All persons named as Trustees and Officers also serve in similar capacities for other funds administered or managed by Management and NBFI. The Fund's Statement of Additional Information includes additional information about the Trustees as of the date of the Fund's most recent public offering documents and is available upon request, without charge, by calling (800) 877-9700.

Information about the Board of Trustees

Name, (Year of Birth),
and Address⁽¹⁾

Position(s)
and Length of
Time Served⁽²⁾

Principal Occupation(s)⁽³⁾

Number of
Funds in
Fund Complex
Overseen by
Trustee

Other Directorships Held
Outside Fund Complex by
Trustee⁽³⁾

Independent Trustees

Faith Colish (1935)

Trustee since inception

Counsel, Carter Ledyard & Milburn LLP (law firm) since October 2002; formerly, Attorney-at-Law and President, Faith Colish, A Professional Corporation, 1980 to 2002.

Formerly, Director, 1997 to 2003, and Advisory Director, 2003 to 2006, ABA Retirement Funds (formerly, American Bar Retirement Association) (not-for-profit membership corporation).

Name, (Year of Birth),
and Address⁽¹⁾

Position(s)
and Length of
Time Served⁽²⁾

Principal Occupation(s)⁽³⁾

Number of
Funds in
Fund Complex
Overseen by
Trustee

Other Directorships Held
Outside Fund Complex by
Trustee⁽³⁾

Martha C. Goss (1949)

Trustee since 2007

President, Woodhill Enterprises Inc./Chase Hollow Associates LLC (personal investment vehicle), since 2006; formerly, Consultant, Resources Global Professionals (temporary staffing), 2002 to 2006.

Director, American Water (water utility), since 2003; Director, Allianz Life of New York (insurance), since 2005; Director, Berger Group Holdings, Inc. (engineering consulting firm), since 2013; Director, Financial Women's Association of New York (not-for-profit association), since 2003; Trustee Emerita, Brown University, since 1998; Director, Museum of American Finance (not-for-profit), since 2013; formerly, Non-Executive Chair and Director, Channel Reinsurance (financial guaranty reinsurance), 2006 to 2010; formerly, Director, Ocwen Financial Corporation (mortgage servicing), 2005 to 2010; formerly, Director, Claire's Stores, Inc. (retailer), 2005 to 2007; formerly, Director, Parsons Brinckerhoff Inc. (engineering consulting firm), 2007 to 2010; formerly, Director, Bank Leumi (commercial bank), 2005 to 2007; formerly, Advisory Board Member, Attensity (software developer), 2005 to 2007.

Michael M. Knetter (1960)

Trustee since 2007

Name, (Year of Birth),
and Address⁽¹⁾

Position(s)
and Length of
Time Served⁽²⁾

Principal Occupation(s)⁽³⁾

Number of
Funds in
Fund Complex
Overseen by
Trustee

Other Directorships Held
Outside Fund Complex by
Trustee⁽³⁾

Howard A. Mileaf (1937)

Trustee since inception

Retired; formerly, Vice President and General Counsel, WHX Corporation (holding company), 1993 to 2001.

George W. Morriss (1947)

Trustee since 2007

Tom D. Seip (1950)

Trustee since inception; Chairman of the Board since 2008; Lead Independent Trustee from 2006 to 2008

Name, (Year of Birth),
and Address⁽¹⁾

Position(s)
and Length of
Time Served⁽²⁾

Principal Occupation(s)⁽³⁾

Number of
Funds in
Fund Complex
Overseen by
Trustee

Other Directorships Held
Outside Fund Complex by
Trustee⁽³⁾

Candace L. Straight (1947)

Trustee since inception

Peter P. Trapp (1944)

Trustee since inception

Retired; formerly, Regional Manager for Mid-Southern Region, Ford Motor Credit Company, September 1997 to 2007; formerly, President, Ford Life Insurance Company, April 1995 to August 1997.

None.

Name, (Year of Birth),
and Address⁽¹⁾

Position(s)
and Length of
Time Served⁽²⁾

Principal Occupation(s)⁽³⁾

Number of
Funds in
Fund Complex
Overseen by
Trustee

Other Directorships Held
Outside Fund Complex by
Trustee⁽³⁾

Trustees who are "Interested Persons"

Joseph V. Amato* (1962)

Trustee since 2009

Name, (Year of Birth),
and Address⁽¹⁾

Position(s)
and Length of
Time Served⁽²⁾

Principal Occupation(s)⁽³⁾

Number of
Funds in
Fund Complex
Overseen by
Trustee

Other Directorships Held
Outside Fund Complex by
Trustee⁽³⁾

Robert Conti* (1956)

Chief Executive Officer, President and Trustee since 2008; prior thereto, Executive Vice President in 2008 and Vice President from inception to 2008

Director, Staten Island Mental Health Society, since 1994; formerly, Chairman of the Board, Staten Island Mental Health Society, 2008 to 2011.

(1) The business address of each listed person is 605 Third Avenue, New York, New York 10158.

(3) Except as otherwise indicated, each individual has held the positions shown for at least the last five years.

* Indicates a Trustee who is an "interested person" within the meaning of the 1940 Act. Mr. Amato and Mr. Conti are interested persons of the Trust because each is an officer of Management, Neuberger and/or their affiliates.

Information about the Officers of the Trust

Name, (Year of Birth), and Address⁽¹⁾	Position(s) and Length of Time Served⁽²⁾	Principal Occupation(s)⁽³⁾
Andrew B. Allard (1961)	Chief Legal Officer since 2013 (only for purposes of sections 307 and 406 of the Sarbanes-Oxley Act of 2002) and Anti-Money Laundering Compliance Officer since 2002	General Counsel and Senior Vice President, Management, since 2013; Senior Vice President, Neuberger, since 2006 and Employee since 1999; Deputy General Counsel, Neuberger, since 2004; formerly, Vice President, Neuberger, 2000 to 2005; formerly, Employee, Management, 1994 to 1999; Chief Legal Officer since 2013 (only for purposes of sections 307 and 406 of the Sarbanes-Oxley Act of 2002) ten registered investment companies for which Management acts as investment manager and administrator (ten since 2013); Anti-Money Laundering Compliance Officer, ten registered investment companies for which Management acts as investment manager and administrator (six since 2002, one since 2003, one since 2005, one since 2006 and one since 2013).
Claudia A. Brandon (1956)	Executive Vice President since 2008 and Secretary since inception	Senior Vice President, Neuberger, since 2007 and Employee since 1999; Senior Vice President, Management, since 2008 and Assistant Secretary since 2004; formerly, Vice President, Neuberger, 2002 to 2006; formerly, Vice President-Mutual Fund Board Relations, Management, 2000 to 2008; formerly, Vice President, Management, 1986 to 1999 and Employee 1984 to 1999; Executive Vice President, ten registered investment companies for which Management acts as investment manager and administrator (nine since 2008 and one since 2013); Secretary, ten registered investment companies for which Management acts as investment manager and administrator (three since 1985, three since 2002, one since 2003, one since 2005, one since 2006 and one since 2013).
Agnes Diaz (1971)	Vice President since 2013	Vice President, ten registered investment companies for which Management acts as investment manager and administrator (ten since 2013).
Anthony DiBernardo (1979)	Assistant Treasurer since 2011	Vice President, Neuberger, since 2009; Employee, Management, since 2003; Assistant Treasurer, ten registered investment companies for which Management acts as investment manager and administrator (nine since 2011 and one since 2013).
Sheila R. James (1965)	Assistant Secretary since inception	Vice President, Neuberger, since 2008 and Employee since 1999; formerly, Assistant Vice President, Neuberger, 2007; formerly, Employee, Management, 1991 to 1999; Assistant Secretary, ten registered investment companies for which Management acts as investment manager and administrator (six since 2002, one since 2003, one since 2005, one since 2006 and one since 2013).
Brian Kerrane (1969)	Vice President since 2008	Senior Vice President, Neuberger, since 2008 and Employee since 1991; formerly, Vice President, Neuberger, 2002 to 2008; Vice President, ten registered investment companies for which Management acts as investment manager and administrator (nine since 2008 and one since 2013).

Name, (Year of Birth), and Address⁽¹⁾	Position(s) Time Served⁽²⁾	Principal Occupation(s)⁽³⁾and Length of
Kevin Lyons (1955)	Assistant Secretary since inception	Assistant Vice President, Neuberger, since 2008 and Employee since 1999; formerly, Employee, Management, 1993 to 1999; Assistant Secretary, ten registered investment companies for which Management acts as investment manager and administrator (seven since 2003, one since 2005, one since 2006 and one since 2013).
Owen F. McEntee, Jr. (1961)	Vice President since 2008	Vice President, Neuberger, since 2006; Employee, Management, since 1992; Vice President, ten registered investment companies for which Management acts as investment manager and administrator (nine since 2008 and one since 2013).
John M. McGovern (1970)	Treasurer and Principal Financial and Accounting Officer since inception	Senior Vice President, Neuberger, since 2007; formerly, Vice President, Neuberger, 2004 to 2006; Employee, Management, since 1993; Treasurer and Principal Financial and Accounting Officer, ten registered investment companies for which Management acts as investment manager and administrator (eight since 2005, one since 2006 and one since 2013); formerly, Assistant Treasurer, eight registered investment companies for which Management acts as investment manager and administrator, 2002 to 2005.
Frank Rosato (1971)	Assistant Treasurer since inception	Vice President, Neuberger, since 2006; Employee, Management, since 1995; Assistant Treasurer, ten registered investment companies for which Management acts as investment manager and administrator (eight since 2005, one since 2006 and one since 2013).
Neil S. Siegel (1967)	Vice President since 2008	Managing Director, Management, since 2008; Managing Director, Neuberger, since 2006; Managing Director, NBFI, since 2011; formerly, Senior Vice President, Neuberger, 2004 to 2006; Vice President, ten registered investment companies for which Management acts as investment manager and administrator (nine since 2008 and one since 2013).
Chamaine Williams (1971)	Chief Compliance Officer since inception	Senior Vice President, Neuberger, since 2007; Chief Compliance Officer, Management, since 2006; Chief Compliance Officer, ten registered investment companies for which Management acts as investment manager and administrator (eight since 2005, one since 2006 and one since 2013); formerly, Senior Vice President, LBI, 2007 to 2008; formerly, Vice President, LBI, 2003 to 2006; formerly, Chief Compliance Officer, Lehman Brothers Asset Management Inc., 2003 to 2007; formerly, Chief Compliance Officer, Lehman Brothers Alternative Investment Management LLC, 2003 to 2007.

(1) The business address of each listed person is 605 Third Avenue, New York, New York 10158.

(3) Except as otherwise indicated, each individual has held the positions shown for at least the last five years.

Proxy Voting Policies and Procedures

Quarterly Portfolio Schedule

The Trust files a complete schedule of portfolio holdings for the Fund with the Securities and Exchange Commission for the first and third quarters of the fiscal year on Form N-Q. The Trust's Forms N-Q are available on the Securities and Exchange Commission's website at www.sec.gov and may be reviewed and copied at the Securities and Exchange Commission's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330. The information on Form N-Q is available upon request, without charge, by calling 800-877-9700 (toll-free).

Board Consideration of the Management and Sub-Advisory Agreements

In evaluating the Agreements, the Board, including the Independent Fund Trustees, reviewed extensive materials provided by Management in response to questions submitted by the Board and counsel for the Independent Fund Trustees, and met with senior representatives of Management regarding their personnel, operations and financial conditions as they relate to the Fund. The annual contract review extends over at least two regular meetings of the Board to ensure that Management and Neuberger Berman Fixed Income LLC ("NBFI") have time to respond to any questions the Independent Fund Trustees may have on their initial review of the materials and that the Independent Fund Trustees have time to consider those responses.

In connection with its deliberations, the Board also considered the broad range of information relevant to the annual contract review that is provided to the Board (including its various standing committees) at meetings throughout the year, including investment performance reports and related portfolio information for the Fund, as well as periodic reports on, among other matters, pricing and valuation; brokerage and execution; and compliance, shareholder and other services provided by Management, NBFI and their affiliates. To assist the Board in its deliberations regarding the annual contract review, the Board has established a Contract Review Committee comprised of Independent Fund Trustees, as well as other committees that focus throughout the year on specific areas relevant to the annual contract review, such as Fund performance or compliance matters.

In connection with its approval of the continuation of the Agreements, the Board evaluated the terms of the Agreements, the overall fairness of the Agreements to the Fund and whether the Agreements were in the best interests of the Fund and its shareholders. The Board considered all factors it deemed relevant with respect to the Fund, including the following factors: (1) the nature, extent, and quality of the services to be provided by Management and NBFI; (2) the investment performance of the Fund compared to a relevant market index and a peer group of investment companies; (3) the costs of the services provided; (4) the extent to which economies of scale might be realized as the Fund grows; and (5) whether fee levels reflect any such potential economies of scale for the benefit of investors in the Fund. While each Trustee may have attributed different weights to the various factors, the Board's determination to approve the continuation of the Agreements was based on a comprehensive consideration of all information provided to the Board throughout the year and specifically in connection with the annual contract review. The Board members did not identify any particular information or factor that was all-important or controlling. The Board focused on the overall costs and benefits of the Agreements relating to the Fund and, through the Fund, its shareholders.

With respect to the nature, extent and quality of the services provided, the Board considered the investment philosophy and decision-making processes of Management and NBFI, and the qualifications, experience and capabilities of and the resources available to the portfolio management personnel of Management and NBFI who perform services for the Fund. The Board noted that Management also provides certain administrative services, including fund accounting and compliance oversight. The Board also considered Management's and NBFI's policies and practices regarding brokerage and allocation of portfolio transactions and reviewed the quality of the execution services that Management had provided. The Board also reviewed whether Management or NBFI used brokers to execute Fund transactions that provide research and other services to Management or NBFI and the types of benefits potentially derived from such services by Management, NBFI, the Fund and other clients of Management and NBFI. The Board also considered that Management's responsibilities include daily management of investment, operational, enterprise, legal, regulatory and compliance risks as they relate to the

Fund, and considered information regarding Management's process for managing risk. In addition, the Board noted the positive compliance history of Management and NBFI, as each firm has been free of significant reported compliance problems. The Board also considered the general structure of the portfolio manager compensation program and whether this structure provides appropriate incentives to act in the best interest of the Fund. The Board also considered the manner in which Management addressed various non-routine matters that arose during the year, some of them a result of developments in the broader fund industry or the regulations governing it. In addition, the Board considered actions taken by Management and NBFI in response to recent market conditions, including actions taken in response to changes in market volatility, and considered the overall performance of Management and NBFI in this context.

With respect to investment performance, when the Board first approved the Fund it considered information regarding the performance of a separate account managed by a Management affiliate with similar investment objectives, policies and strategies as the Fund relative to a relevant market index (or benchmark). In addition, throughout the period the Board considered information regarding the Fund's recent performance. The Board also reviewed performance in relation to certain measures of the degree of investment risk undertaken by the portfolio managers. The Board noted that performance, especially short-term performance, is only one of the factors that it deems relevant to its consideration of the Fund's Agreements and that, after considering all relevant factors, it may be appropriate to approve the continuation of the Agreements notwithstanding the Fund's recent performance.

With respect to the overall fairness of the Agreements, when the Board first approved the Fund the Board considered the fee structure for the Fund under the Agreements as compared to a peer group of comparable funds, and any fall-out benefits likely to accrue to Management or NBFI or their affiliates from their relationship with the Fund. The Board also considered the profitability of Management and its affiliates from their association with the Fund; however, because the Fund has been in operation for a relatively short period of time, there was no useful information available regarding Management's profitability.

Prior to the Fund's inception, the Board reviewed a comparison of the Fund's management fee and overall expense ratio to a peer group of broadly comparable funds. The Board noted that the comparative management fee analysis includes in the Fund's management fee the separate administrative fee paid to Management, but it was not clear whether this was the case for all funds in the peer group. The Board considered the mean and median of management fees and expense ratios of the peer group. The Board also considered whether there were other funds that were advised or sub-advised by Management or its affiliates or separate accounts managed by Management or its affiliates with investment objectives, policies and strategies that were similar to the Fund. The Board compared the fees charged to the Fund to the fees charged to any such funds and/or separate accounts. The Board considered the appropriateness and reasonableness of any differences between the fees charged to the Fund and any such funds and/or separate accounts, including any breakpoints, and determined that any differences in fees and fee structures were consistent with the management and other services provided. The Board considered Management's willingness to waive advisory fees to the extent that other entities provide services that overlap with those called for under the Agreement. In addition, the Board considered the contractual limits on the expenses undertaken by Management for the Fund. The Board also evaluated any apparent or anticipated economies of scale in relation to the services Management provides to the Fund. The Board considered whether the Fund's fee structure provides for a reduction of payments resulting from the use of breakpoints and whether those breakpoints are set at appropriate asset levels.

Conclusions

In approving the Agreements, the Board concluded that the terms of each Agreement are fair and reasonable to the Fund and that approval of the Agreements is in the best interests of the Fund and its shareholders. In reaching this determination, the Board considered that Management and NBFI could be expected to provide a high level of service to the Fund; that the Fund's fee structure appeared to the Board to be reasonable given the nature, extent and quality of services provided; and that the benefits accruing to Management and its affiliates by virtue of their relationship to the Fund were reasonable in light of the benefits accruing to the Fund. The Board's conclusions may be based in part on its consideration of materials prepared in connection with the Agreements in prior years and on the Board's ongoing regular review of Fund performance and operations throughout the year, in addition to material prepared specifically for the most recent annual review of the Agreements.

This page has been left blank intentionally

Neuberger Berman Management LLC
605 Third Avenue 2nd Floor
New York, NY 10158–0180
Shareholder Services
800.877.9700
Institutional Services
800.366.6264
www.nb.com

Statistics and projections in this report are derived from sources deemed to be reliable but cannot be regarded as a representation of future results of the Fund. This report is prepared for the general information of shareholders and is not an offer of shares of the Fund. Shares are sold only through the currently effective prospectus, which must precede or accompany this report.

M0258 12/13

Neuberger Berman
Alternative and Multi-Asset Class Funds

Institutional Class Shares
Class A Shares
Class C Shares

Absolute Return Multi-Manager Fund

Annual Report

October 31, 2013

Contents

PRESIDENT'S LETTER					1
PORTFOLIO COMMENTARY					2
FUND EXPENSE INFORMATION					8
SCHEDULE OF INVESTMENTS/TOP TEN EQUITY HOLDINGS					10
FINANCIAL STATEMENTS					32
FINANCIAL HIGHLIGHTS/PER SHARE DATA					53
Report of Independent Registered Public Accounting Firm					56
Directory					57
Trustees and Officers					58
Proxy Voting Policies and Procedures					66
Quarterly Portfolio Schedule					66
Notice to Shareholders					66
Board Consideration of the Management and Sub-Advisory Agreements					67

President's Letter

Dear Shareholder,

I am pleased to present this annual shareholder report for Neuberger Berman Absolute Return Multi-Manager Fund. The report includes a portfolio commentary, a listing of the Fund's investments and its audited financial statements for the 12 months ended October 31, 2013. The Fund seeks long-term capital appreciation with an emphasis on absolute returns by investing in a diversified portfolio of assets subadvised by seasoned hedge fund managers across multiple strategies that target low volatility and low beta to broader markets.

The global financial markets generated mixed results during the period. The markets were volatile at times due to a number of factors, including global economic data, expectations regarding future central bank monetary policy, geopolitical issues, uncertainties surrounding the U.S. fiscal cliff and sequestration, and the partial government shutdown. Despite several flights to quality, risk assets generated strong results, with U.S. equities reaching several new record highs during the period. In contrast, fixed income securities were generally weak amid a rising interest rate environment. Hedge fund managers, as reflected by the HFRX Absolute Return Index, returned 3.99% during the reporting period.

Looking ahead, we anticipate the Fund's subadvisers will continue to actively manage their respective portfolios and identify what they believe to be attractive investment opportunities. In particular, generally low stock correlations could be a positive environment for our long/short equity subadvisers. Still, given the market's strong returns since the credit crisis, the subadvisers remain defensively positioned to hedge against a potential market correction. We see a positive backdrop for our event driven subadvisers, given what we feel will be continued robust merger and acquisition, spinoff, divestiture and share buyback activity. Finally, our credit long/short subadviser continues to emphasize bank loans and refinancing opportunities, while our asset-backed security subadviser is identifying what it believes are attractive opportunities in both residential and commercial mortgage-backed securities.

Thank you for your continued support and trust. We look forward to continue serving your investment needs in the years to come.

Sincerely,

ROBERT CONTI
PRESIDENT AND CEO
NEUBERGER BERMAN MUTUAL FUNDS

Absolute Return Multi-Manager Fund Commentary (Unaudited)

Neuberger Berman Absolute Return Multi-Manager Fund Institutional Class generated a 9.19% total return for the 12 months ended October 31, 2013. During the period, the Fund outperformed its benchmark, the HFRX Absolute Return Index, which posted a 3.99% return. (Performance for all share classes is provided in the table following this letter.)

The financial markets were volatile at times during the reporting period. However, the equity markets were highly resilient, with the S&P 500 and other broad indices reaching all-time highs. In contrast, the overall fixed income market generated weak results. Interest rates moved higher given expectations that the Federal Reserve (the Fed) would start tapering its asset purchases sooner than previously expected. Two notable bright spots within the fixed income market were high yield bonds and floating rate bank loans, as they benefited from overall robust demand and low defaults. All told, the S&P 500 Index returned 27.18% and the Barclays U.S. Aggregate Bond Index returned –1.08% during the 12-month reporting period.

All of the portfolio's subadvisers generated positive absolute returns for the period. Long/short equity was the most material positive contributor, with all of the Fund's subadvisers in the space posting positive performance. In particular, long and short positions in the Health Care sector were beneficial, as the subadvisers took long positions in companies that they felt would benefit from the Affordable Care Act, while shorting companies that they believed would be negatively impacted. On the downside, a number of short positions across sectors detracted from performance amid the market's sharp rally.

Event driven equity strategies were the next most material positive contributor for the period, with all of the portfolio's subadvisers in this category generating positive performance. They continued to benefit from a robust environment for spinoffs, divestitures and share buybacks. On the downside, short positions that were part of spread trades and shorts that acted as broader market/sector hedges drove the majority of event driven losses as markets rallied. One new event driven subadviser was added during the reporting period. We feel this will enhance the portfolio's array of investment as, unlike the other event driven subadvisers, the new subadviser emphasizes small- and mid-cap companies.

The Fund's credit long/short subadviser performed well during the period, benefiting from refinancing opportunities. The subadviser also emphasized more senior parts of the capitalization structure, such as floating rate bank loans, which act as a partial hedge against interest rate volatility. The Fund's asset-backed security subadviser generated positive results as well by favoring residential mortgage-backed securities over commercial mortgage-backed securities.

During the reporting period, the subadvisers' use of futures, forward foreign currency contracts options and equity and total return swaps did not meaningfully impact the Fund's performance.

With the U.S. government shutdown and debt ceiling debate behind us and no material geopolitical or economic events anticipated for the near term, at least in our view, we think correlations between stocks will remain low. This, in turn, could present a favorable environment for fundamental stock pickers in our view. That being said, with equity markets at historic highs, we believe our subadvisers remain defensively positioned, with relatively low gross and net exposures and robust short books.

The increase of deal announcements on a year-over-year basis during the reporting period was encouraging for event driven strategies. Corporate cash balances remain high and the market continues to reward companies involved in corporate activity. Against this backdrop, we anticipate seeing a robust environment of mergers and acquisitions, spinoffs, divestitures and share buybacks.

As the eventual Fed tapering continues to loom, our credit long/short subadviser remains overweighted in shorter duration securities, including floating rate bank loans. The subadviser also continues to focus on refinancing opportunities. Since the Fed's latest decision to delay tapering, our asset-backed security subadviser believes it is seeing more positive market dynamics for both residential and commercial mortgage-backed securities.

Sincerely,

ERIC WEINSTEIN, JEFF MAJIT, FRED INGHAM, DAVID KUPPERMAN AND IAN HAAS
PORTFOLIO CO-MANAGERS

Information about the principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.

The portfolio composition, industries and holdings of the Fund are subject to change.

The opinions expressed are those of the Fund's portfolio managers. The opinions are as of the date of this report and are subject to change without notice.

Absolute Return Multi-Manager Fund (Unaudited)

TICKER SYMBOLS

Institutional Class				NABIX
Class A				NABAX
Class C				NABCX

PORTFOLIO BY TYPE OF SECURITY

(as a % of Total Net Assets)

	Long			Short
Asset-Backed Securities		0.4	%		—	%
Bank Loan Obligations		8.1			—
Common Stocks		47.9			(10.7	)
Convertible Bonds		0.0			—
Corporate Debt Securities		1.1			(0.3	)
Exchange Traded Funds		0.5			(8.7	)
Investment Companies		0.0			—
Mortgage-Backed Securities		2.4			—
Preferred Stocks		0.5			—
Purchased Options		0.4			—
Rights		0.0			—
U.S. Treasury Securities		0.0			(0.1	)
Warrants		0.0			—
Short-Term Investments		39.9			—
Cash, receivables and other assets, less liabilities		18.6			—
Total		119.8	%		(19.8	)%

PERFORMANCE HIGHLIGHTS

	Inception	Average Annual Total Return Ended 10/31/2013
	Date	1 Year			Life of Fund
At NAV
Institutional Class	05/15/2012		9.19	%		6.18	%
Class A	05/15/2012		8.70	%		5.79	%
Class C	05/15/2012		8.03	%		5.05	%
With Sales Charge
Class A			2.45	%		1.60	%
Class C			7.03	%		5.05	%
Index
HFRX Absolute Return Index^1,2			3.99	%		2.47	%
S&P 500 Index^1,2			27.18	%		23.05	%
Barclays U.S. Aggregate Bond Index^1,2			–1.08	%		0.80	%

The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.

As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2012 were 5.10%, 5.90% and 10.51% for Institutional Class, Class A and Class C shares, respectively (before expense reimbursements and/or fee waivers, if any). The expense ratios were 2.34%, 2.74% and 3.46% for Institutional Class, Class A and Class C shares, respectively, after expense reimbursements and/or fee waivers.

Absolute Return Multi-Manager Fund (Unaudited)

COMPARISON OF A $1,000,000 INVESTMENT

(000's omitted)

Endnotes

1 Please see "Glossary of Indices" on page 7 for a description of indices. Please note that the S&P 500 and the Barclays U.S. Aggregate Bond indices do not take into account any fees, expenses or tax consequences of investing in the individual securities that they track, and that individuals cannot invest directly in any index. The HFRX Index does take into account fees and expenses of investing since it is based on the underlying hedge funds' net returns. Data about the performance of an index is prepared or obtained by Neuberger Berman Management LLC ("Management") and reflects the reinvestment of income dividends and other distributions, if any. The Fund may invest in securities not included in a described index and may not invest in all securities included in a described index.

2 The date used to calculate Life of Fund performance for the index is the inception date of the oldest share class.

For more complete information on any of the Neuberger Berman Alternative and Multi-Asset Class Funds, call Management at (800) 877-9700, or visit our website at www.nb.com.

Glossary of Indices

HFRX Absolute Return Index:				Designed to be representative of the overall composition of the hedge fund universe. It is comprised of all eligible hedge fund strategies; including but not limited to convertible arbitrage, distressed securities, equity hedge, equity market neutral, event driven, macro, merger arbitrage, and relative value arbitrage. As a component of the optimization process, the index selects constituents which characteristically exhibit lower volatilities and lower correlations to standard directional benchmarks of equity market and hedge fund industry performance. Fund weights are determined by the optimization process. Constituent funds are selected from an eligible pool of the more than 6,800 funds that report performance to the Hedge Fund Research (HFR) database on a voluntary basis, and rebalanced quarterly. Funds included in the index must meet all of the following criteria: report monthly returns net of all fees; be denominated in USD; be active and accepting new investments; have a minimum 24 months track record; and the Fund's manager must have at least $50 million in assets under management. The index is available daily, with finalized month-end performance available two to three business days after the last business day of the month.
S&P 500 Index:				Widely regarded as the standard for measuring the performance of large-cap stocks traded on U.S. markets and includes a representative sample of leading companies in leading industries.
Barclays U.S. Aggregate Bond Index:				An unmanaged index that represents the U.S. domestic investment grade bond market. It is comprised of the Barclays Government/Corporate Bond Index, Mortgage-Backed Securities Index, and Asset-Backed Securities Index, including securities that are of investment-grade quality or better, have at least one year to maturity, and have an outstanding par value of at least $250 million. Asset backed securities must have at least $500 million deal size and $25 million tranche size. For commercial mortgage-backed securities, the original transaction must have a minimum deal size of $500 million, and a minimum tranche size of $25 million; the current outstanding transaction size must be at least $300 million to remain in the index.

Information About Your Fund's Expenses (Unaudited)

As a Fund shareholder, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds (if applicable); and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees (if applicable); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and compare these costs with the ongoing costs of investing in other mutual funds.

This table is designed to provide information regarding costs related to your investments. The following examples are based on an investment of $1,000 made at the beginning of the six months ended October 31, 2013 and held for the entire period. The table illustrates the Fund's costs in two ways:

Actual Expenses and Performance:				The first section of the table provides information about actual account values and actual expenses in dollars, based on the Fund's actual performance during the period. You may use the information in this line, together with the amount you invested, to estimate the expenses you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section of the table under the heading entitled "Expenses Paid During the Period" to estimate the expenses you paid over the period.
Hypothetical Example for Comparison Purposes:				The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return at 5% per year before expenses. This return is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in this Fund versus other funds. To do so, compare the expenses shown in this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses in the table are meant to highlight your ongoing costs only and do not include any transaction costs, such as sales charges (loads) (if applicable). Therefore, the information under the heading "Hypothetical (5% annual return before expenses)" is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

Expense Information as of 10/31/13 (Unaudited)

Neuberger Berman Alternative Funds
	ACTUAL									HYPOTHETICAL(5% ANNUAL RETURN BEFORE EXPENSES)⁽²⁾
	Beginning Account Value 5/1/13		Ending Account Value 10/31/13		Expenses Paid During the Period⁽¹⁾ 5/1/13 - 10/31/13		Expense Ratio			Beginning Account Value 5/1/13		Ending Account Value 10/31/13		Expenses Paid During the Period⁽¹⁾ 5/1/13 - 10/31/13		Expense Ratio
Neuberger Berman Absolute Return Multi-Manager Fund
Institutional Class	$	1,000.00	$	1,040.20	$	11.52		2.24	%	$	1,000.00	$	1,013.91	$	11.37		2.24	%
Class A	$	1,000.00	$	1,038.40	$	13.41		2.61	%	$	1,000.00	$	1,012.05	$	13.24		2.61	%
Class C	$	1,000.00	$	1,034.80	$	17.28		3.37	%	$	1,000.00	$	1,008.22	$	17.06		3.37	%

(2) Hypothetical 5% annual return before expenses is calculated by multiplying the number of days in the most recent period divided by 365.

Schedule of Investments Absolute Return Multi-Manager Fund

TOP TEN EQUITY HOLDINGS LONG POSITIONS (as a % of Net Assets)

		Country	Industry
1	Life Technologies Corp.	United States	Life Sciences Tools & Services	1.3	%
2	NYSE Euronext	United States	Diversified Financial Services	1.1	%
3	CBS Corp. Class B	United States	Media	1.1	%
4	Liberty Global PLC Series C	United Kingdom	Media	0.9	%
5	Teradata Corp.	United States	IT Services	0.8	%
6	Vodafone Group PLC ADR	United Kingdom	Wireless Telecommunication Services	0.7	%
7	Lender Processing Services, Inc.	United States	IT Services	0.7	%
8	Air Products & Chemicals, Inc.	United States	Chemicals	0.7	%
9	The Dun & Bradstreet Corp.	United States	Professional Services	0.7	%
10	Hartford Financial Services Group, Inc.	United States	Insurance	0.7	%

TOP TEN EQUITY HOLDINGS SHORT POSITIONS (as a % of Net Assets)

		Country	Industry
1	IntercontinentalExchange, Inc.	United States	Diversified Financial Services	(0.9	)%
2	M&T Bank Corp.	United States	Commercial Banks	(0.6	)%
3	Liberty Global PLC Class A	United Kingdom	Media	(0.4	)%
4	Perrigo Co.	United States	Pharmaceuticals	(0.3	)%
5	Time Warner, Inc.	United States	Media	(0.3	)%
6	Pacira Pharmaceuticals, Inc.	United States	Pharmaceuticals	(0.2	)%
7	Marine Harvest ASA	Norway	Food Products	(0.2	)%
8	Lennar Corp. Class A	United States	Household Durables	(0.2	)%
9	HSN, Inc.	United States	Internet & Catalog Retail	(0.2	)%
10	Verizon Communications, Inc.	United States	Diversified Telecommunication Services	(0.2	)%

	Number of Shares		Value†
Long Positions (101.2%)
Common Stocks (47.9%)
Aerospace & Defense (0.1%)
DigitalGlobe, Inc.		12,950	$	412,069	*
Airlines (0.1%)
AMR Corp.		2,011		14,781	*
JetBlue Airways Corp.		51,810		367,333	*^Ø
United Continental Holdings, Inc.		4		136	*
US Airways Group, Inc.		9,362		205,683	*^Ø
				587,933
Auto Components (0.1%)
Cooper Tire & Rubber Co.		19,800		514,998	^±Ø
Automobiles (0.1%)
Daimler AG		3,482		285,741	^Ø
Fiat SpA		15,136		118,990	*^Ø
Motors Liquidation Co. GUC Trust		2,954		107,230	*
				511,961
Beverages (0.8%)
Anheuser-Busch InBev NV		15,646		1,627,241	^Ø
Asahi Group Holdings Ltd.		17,600		474,321	^Ø

	Number of Shares		Value†
Constellation Brands, Inc. Class A		903	$	58,966	*
Molson Coors Brewing Co. Class B		33,196		1,792,584
				3,953,112
Biotechnology (2.4%)
Ablynx NV		2,188		21,479	*
Aegerion Pharmaceuticals, Inc.		16,610		1,375,640	*^Ø
Agios Pharmaceuticals, Inc.		2,970		68,785	*^Ø
Alexion Pharmaceuticals, Inc.		229		28,156	*
Algeta ASA		582		23,122	*
Amgen, Inc.		382		44,312	^Ø
Basilea Pharmaceutica		4,719		514,885	*^Ø
Biogen Idec, Inc.		1,412		344,796	*^Ø
BioMarin Pharmaceutical, Inc.		467		29,337	*^Ø
Celgene Corp.		265		39,350	*^Ø
Cepheid, Inc.		6,610		269,159	*
Coronado Biosciences, Inc.		8,370		13,978	*^Ø
Cubist Pharmaceuticals, Inc.		12,900		799,800	*^Ø

	Number of Shares		Value†
Durata Therapeutics, Inc.		1,070	$	10,358	*
Elan Corp. PLC ADR		188,535		3,140,993	*^Ø
Enanta Pharmaceuticals, Inc.		3,832		76,487	*^Ø
Galapagos NV		1,094		21,196	*
Geron Corp.		55,160		217,882	*
Gilead Sciences, Inc.		2,836		201,328	*^Ø
Grifols SA ADR		815		24,580	^Ø
Kamada Ltd.		1,042		14,984	*
Keryx Biopharmaceuticals, Inc.		31,104		321,926	*^Ø
MacroGenics, Inc.		2,830		76,240	*
Medivation, Inc.		570		34,120	*
Neurocrine Biosciences, Inc.		58,634		553,505	*^Ø
NPS Pharmaceuticals, Inc.		17,309		498,153	*^Ø
OvaScience, Inc.		264		2,553	*^Ø
Pharmacyclics, Inc.		264		31,321	*
QLT, Inc.		4,348		18,914	^Ø
Receptos, Inc.		11,654		297,876	*^Ø
Regeneron Pharmaceuticals, Inc.		86		24,734	*
Rigel Pharmaceuticals, Inc.		49,700		153,573	*

See Notes to Schedule of Investments

	Number of Shares			Value†
Sarepta Therapeutics, Inc.		433		$	16,861	*
Swedish Orphan Biovitrum AB		50,681			484,907	*^Ø
Theravance, Inc.		33,838			1,239,824	*^±
Trius Therapeutics Inc.		24,000			3,120	*^fØ
					11,038,234
Capital Markets (0.5%)
Evercore Partners, Inc. Class A		24,250			1,223,897	^Ø
GAM Holding AG		49,520			927,801	*
Medallion Financial Corp.		1,075			16,318
Mediobanca SpA		28,942			264,266	^Ø
					2,432,282
Chemicals (2.4%)
Air Products & Chemicals, Inc.		29,824			3,251,114	^Ø
Ashland, Inc.		14,421			1,334,664
FMC Corp.		40,925			2,977,703	^Ø
Huntsman Corp.		43,000			998,460	^Ø
LANXESS AG		3,761			264,721	^Ø
LyondellBasell Industries NV Class A		4,100			305,860	^Ø
Monsanto Co.		8,020			841,138	^Ø
Rockwood Holdings, Inc.		954			60,340	^Ø
Syngenta AG		61			24,639
The Sherwin- Williams Co.		1,200			225,600	^Ø
Tredegar Corp.		8,160			238,435
Yongye International, Inc.		17,904			112,795	*
Zoltek Cos., Inc.		39,000			651,300	*^Ø
					11,286,769
Commercial Banks (0.9%)
Aozora Bank Ltd.		232,441			673,708	^Ø
CapitalSource, Inc.		34,156			446,760	^Ø
Chong Hing Bank Ltd.		89,490			404,569
CIT Group, Inc.		5,718			275,379	*^Ø
Commerzbank AG		7,261			93,351	*^Ø
Kasikornbank PCL		134,700			822,265	^Ø
MetroCorp Bancshares, Inc.		14,814			212,285	^Ø
StellarOne Corp.		624			14,527
Sterling Bancorp.		16,769	��		247,343	^Ø
Sterling Financial Corp.		6,750			195,480	^Ø
Synovus Financial Corp.		66,739			216,902	^Ø

	Number of Shares		Value†
Valley National Bancorp.		25,607	$	249,668	^Ø
Virginia Commerce Bancorp., Inc.		12,784		204,927	*^Ø
				4,057,164
Commercial Services & Supplies (0.7%)
Iron Mountain, Inc.		42,601		1,130,630	^±Ø
Pitney Bowes, Inc.		11,055		235,914	^Ø
Tyco International Ltd.		50,325		1,839,379	^Ø
				3,205,923
Communications Equipment (0.6%)
Anaren, Inc.		9,332		233,113	*^Ø
BlackBerry Ltd.		5,000		39,550	*
Cisco Systems, Inc.		36,600		823,500	^Ø
Globecomm Systems, Inc.		12,080		169,482	*^Ø
Nokia OYJ ADR		68,893		525,654	*^Ø
Polycom, Inc.		1,253		13,031	*
Symmetricom, Inc.		12,186		87,374	*
Tellabs, Inc.		335,933		819,677	^Ø
				2,711,381
Computers & Peripherals (0.2%)
Diebold, Inc.		19,021		569,869	^Ø
EMC Corp.		13,424		323,116
Quantum Corp.		52,961		65,672	*
				958,657
Construction & Engineering (0.0%)
KHD Humboldt Wedag International AG		2,778		24,045
Containers & Packaging (0.5%)
MeadWestvaco Corp.		24,800		864,280
Nampak Ltd.		447,170		1,478,874	^Ø
				2,343,154
Diversified Consumer Services (0.7%)
Estacio Participacoes SA		71,200		549,844	^Ø
H&R Block, Inc.		3,046		86,628	^Ø
Mac-Gray Corp.		40,000		843,200	^Ø
Regis Corp.		86,250		1,250,625	^Ø
Stewart Enterprises, Inc. Class A		35,000		462,350	^Ø
Weight Watchers International, Inc.		5,780		185,596	^±
				3,378,243

	Number of Shares		Value†
Diversified Financial Services (1.6%)
Capmark Financial Group, Inc.		5,677	$	33,154	^Ø
Citigroup, Inc.		28,300		1,380,474	^Ø
GT Capital Holdings, Inc.		22,120		438,202	^Ø
MPHB Capital Bhd		219,721		118,371	*^Ø
NYSE Euronext		122,571		5,395,576	^Ø
PHH Corp.		5,484		131,890	*
				7,497,667
Diversified Telecommunication Services (0.2%)
Fairpoint Communications, Inc.		13,897		129,798	*^Ø
Globalstar, Inc.		50,812		70,629	*^Ø
Intelsat SA		3,466		70,672	*^Ø
Koninklijke KPN NV		147,531		471,530	*^Ø
Oi SA ADR		25,569		44,234
Ziggo NV		2,875		123,371
				910,234
Electric Utilities (0.3%)
FirstEnergy Corp.		5,900		223,433	^Ø
NV Energy, Inc.		48,117		1,142,298	^Ø
				1,365,731
Electrical Equipment (0.5%)
Capstone Turbine Corp.		418,485		531,476	*
Coleman Cable, Inc.		2,059		50,651
Eaton Corp. PLC		21,950		1,548,792	^Ø
				2,130,919
Electronic Equipment, Instruments & Components (0.1%)
Molex, Inc.		5,345		206,317	^Ø
Molex, Inc. Class A		9,528		366,828	^Ø
				573,145
Energy Equipment & Services (0.8%)
Cameron International Corp.		31,600		1,733,576	*^Ø
McDermott International, Inc.		65,295		461,636	*
Noble Corp.		38,122		1,437,199	^Ø
Weatherford International Ltd.		10,131		166,554	*
				3,798,965

See Notes to Schedule of Investments

	Number of Shares		Value†
Food & Staples Retailing (0.8%)
CVS Caremark Corp.		369	$	22,974
Harris Teeter Supermarkets, Inc.		29,432		1,451,586	^Ø
Nash Finch Co.		2,630		73,798	^Ø
Safeway, Inc.		17,610		614,589	^±Ø
Shoppers Drug Mart Corp.		23,308		1,361,841	^Ø
Valor Co. Ltd.		31,400		451,856
				3,976,644
Food Products (0.6%)
Dole Food Co., Inc.		50,000		677,500	*^Ø
GrainCorp. Ltd. Class A		10,000		116,632	^Ø
Maple Leaf Foods, Inc.		17,005		250,349
Pinnacle Foods, Inc.		24,266		657,366
Warrnambool Cheese & Butter Factory Co. Holding Ltd.		10,000		78,447
WhiteWave Foods Co. Class A		61,277		1,226,153	*
				3,006,447
Health Care Equipment & Supplies (1.7%)
Align Technology, Inc.		12,150		693,279	*
Baxter International, Inc.		448		29,510
Covidien PLC		22,469		1,440,488	^Ø
Cyberonics, Inc.		5,110		295,154	*^Ø
DexCom, Inc.		4,590		131,871	*
HeartWare International, Inc.		392		28,443	*
Hologic, Inc.		28,886		646,757	*^Ø
ICU Medical, Inc.		20,490		1,266,282	*^Ø
MAKO Surgical Corp.		36,094		1,075,962	*^Ø
Rochester Medical Corp.		39,722		793,646	*^Ø
Teleflex, Inc.		6,090		561,376	^Ø
Trinity Biotech PLC ADR		1,114		27,850	^Ø
William Demant Holding A/S		8,830		873,637	*^Ø
Wright Medical Group, Inc.		708		19,236	*
Zimmer Holdings, Inc.		235		20,555
				7,904,046
Health Care Providers & Services (2.0%)
Aetna, Inc.		942		59,063	^Ø
BioScrip, Inc.		20,800		145,808	*
BioTelemetry, Inc.		22,230		203,182	*^Ø

	Number of Shares		Value†
Brookdale Senior Living, Inc.		1,127	$	30,519	*
Capital Senior Living Corp.		6,556		145,412	*
Cardinal Health, Inc.		573		33,612
Catamaran Corp.		319		14,980	*
Cigna Corp.		515		39,645
DaVita HealthCare Partners, Inc.		373		20,966	*^Ø
Express Scripts Holding Co.		653		40,825	*^Ø
Extendicare, Inc.		57,087		366,290	^Ø
Fresenius SE & Co. KGaA		143		18,587
HCA Holdings, Inc.		785		37,005	^Ø
Health Management Associates, Inc. Class A		167,870		2,152,093	*^Ø
Life Healthcare Group Holdings Ltd.		364,241		1,487,624	^Ø
McKesson Corp.		15,898		2,485,493	^Ø
Omnicare, Inc.		5,744		316,782	^Ø
Team Health Holdings, Inc.		17,750		771,060	*^Ø
Tenet Healthcare Corp.		846		39,923	*
UnitedHealth Group, Inc.		607		41,434	^Ø
Universal Health Services, Inc. Class B		10,578		852,164
				9,302,467
Health Care Technology (0.4%)
Allscripts Healthcare Solutions, Inc.		11,610		160,566	*
Cerner Corp.		19,280		1,080,259	*^Ø
Greenway Medical Technologies		32,100		653,235	*^Ø
Merge Healthcare, Inc.		6,984		17,739	*^Ø
				1,911,799
Hotels, Restaurants & Leisure (0.7%)
Darden Restaurants, Inc.		2,239		115,376
McDonald's Corp.		14,871		1,435,349	^Ø
Morgans Hotel Group Co.		16,811		120,367	*^Ø
Orient-Express Hotels Ltd. Class A		3,000		39,930	*^Ø
Penn National Gaming, Inc.		10,000		585,100	*

	Number of Shares		Value†
Pinnacle Entertainment, Inc.		3,673	$	85,948	*
SHFL Entertainment, Inc.		32,894		762,483	*^Ø
				3,144,553
Household Durables (0.2%)
Blyth, Inc.		4,261		58,844
Lennar Corp. Class B		30,442		897,126	^Ø
UCP, Inc. Class A		7,969		112,363	*
				1,068,333
Household Products (0.1%)
Vinda International Holdings Ltd.		266,802		378,540	^Ø
Industrial Conglomerates (0.3%)
Alliance Global Group, Inc.		2,115,600		1,290,119	^Ø
Siemens AG		394		50,382	^Ø
				1,340,501
Insurance (1.0%)
Ambac Financial Group, Inc.		5,332		107,653	*
American International Group, Inc.		3,222		166,416
Donegal Group, Inc. Class A		10,121		160,418	^Ø
eHealth, Inc.		3,720		158,547	*
Hartford Financial Services Group, Inc.		95,135		3,206,050	^Ø
MetLife, Inc.		3,514		166,247	^±
Syncora Holdings Ltd.		1,709		752	*
Tower Group International Ltd.		953		3,459
UNIQA Insurance Group AG		68,764		842,146	^Ø
				4,811,688
Internet & Catalog Retail (0.2%)
Liberty Ventures Series A		8,000		858,960	*^Ø
Internet Software & Services (0.4%)
The Active Network, Inc.		79,290		1,144,948	*^Ø
Trulia, Inc.		1,088		43,487	*
Web.com Group, Inc.		1,789		48,214	*
Yahoo Japan Corp.		181,800		844,936	^Ø
				2,081,585

See Notes to Schedule of Investments

	Number of Shares		Value†
IT Services (1.6%)
iSoftStone Holdings Ltd. ADR		5,001	$	24,805	*^Ø
Leidos Holdings, Inc.		2,864		134,866
Lender Processing Services, Inc.		96,225		3,321,687	^Ø
Teradata Corp.		81,600		3,596,112	*^Ø
Verifone Systems, Inc.		12,493		283,091	*^Ø
				7,360,561
Leisure Equipment & Products (0.2%)
Hasbro, Inc.		19,139		988,529	^Ø
Life Sciences Tools & Services (1.7%)
Agilent Technologies, Inc.		24,600		1,248,696	^Ø
Furiex Pharmaceuticals, Inc.		12,220		477,802	*^Ø
Life Technologies Corp.		83,684		6,302,242	*^Ø
Morphosys AG		333		25,821	*^Ø
				8,054,561
Machinery (1.2%)
Dover Corp.		15,160		1,391,536	^Ø
Edwards Group Ltd. ADR		16,660		166,600	*^Ø
Ingersoll-Rand PLC		11,480		775,244	^Ø
Invensys PLC		40,000		322,604	^Ø
Joy Global, Inc.		21,530		1,221,828	^Ø
Navistar International Corp.		2,139		77,346	*^±
Pentair Ltd.		17,789		1,193,464	^Ø
Timken Co.		8,706		459,764
Titan International, Inc.		7,788		112,926	^Ø
Xerium Technologies, Inc.		2,858		34,268	*^Ø
				5,755,580
Media (4.9%)
Belo Corp. Class A		35,000		480,550	^Ø
Cablevision Systems Corp. Class A		8,950		139,172
CBS Corp. Class B		87,400		5,168,836	^Ø
Clear Channel Outdoor Holdings, Inc. Class A		2,170		18,445	*^Ø
CTS Eventim AG		1,835		89,568

	Number of Shares		Value†
Digital Generation, Inc.		4,127	$	52,207	*
DISH Network Corp. Class A		27,525		1,326,705	^Ø
Gannett Co., Inc.		3,800		105,146	^Ø
Gray Television, Inc.		40,920		345,774	*^Ø
Hakuhodo DY Holdings, Inc.		84,100		648,305	^Ø
Journal Communications, Inc. Class A		6,768		56,513	*^Ø
Lamar Advertising Co. Class A		13,500		617,085	*^±Ø
Liberty Global PLC Class A		1,846		144,671	*^Ø
Liberty Global PLC Series C		58,562		4,383,951	*^Ø
Liberty Media Corp. Class A		8,142		1,244,993	*^Ø
LIN Media LLC Class A		32		786	*^Ø
Loral Space & Communications, Inc.		3,315		236,592	^Ø
News Corp. Class A		135,689		2,388,126	*^Ø
Nexstar Broadcasting Group, Inc. Class A		456		20,242	^Ø
Omnicom Group, Inc.		12,471		849,400	^Ø
Sinclair Broadcast Group, Inc. Class A		1,271		40,748	^Ø
Sky Deutschland AG		85,225		841,243	*^Ø
Tribune Co.		39,093		2,617,276	*
Tribune Co. Class 1C Litigation		300,000		750	*^Ø
Viacom, Inc. Class B		16,551		1,378,533	^Ø
				23,195,617
Metals & Mining (0.6%)
AuRico Gold, Inc.		3,000		12,330	^Ø
Cia de Minas Buenaventura SAA ADR		9,632		139,664	^Ø
Gold Fields Ltd. ADR		126,612		582,415	^Ø
Gold Reserve, Inc.		8,791		30,383	*^Ø
International Minerals Corp.		1,000		2,714
Sibanye Gold Ltd. ADR		27,896		156,776
SunCoke Energy, Inc.		82,241		1,644,820	*
				2,569,102

	Number of Shares		Value†
Multiline Retail (0.6%)
Canadian Tire Corp. Ltd. Class A		4,327	$	401,637	^Ø
Family Dollar Stores, Inc.		17,198		1,184,598	^Ø
JC Penney Co., Inc.		42,695		320,213	*^Ø
Saks, Inc.		46,716		746,989	*^Ø
				2,653,437
Multi-Utilities (0.2%)
E.ON SE		62,280		1,137,764	^Ø
Oil, Gas & Consumable Fuels (2.4%)
Anadarko Petroleum Corp.		13,180		1,255,922	^Ø
Angle Energy, Inc.		35,827		128,856	*^Ø
Berry Petroleum Co. Class A		600		28,650	^Ø
BP PLC ADR		16,714		777,201	^Ø
Cameco Corp.		93,970		1,785,430	^Ø
Gulf Coast Ultra Deep Royalty Trust		17,250		41,745	*^Ø
Harvest Natural Resources, Inc.		21,496		107,480	*^Ø
Hess Corp.		30,712		2,493,814	^Ø
Novus Energy, Inc.		179,093		195,814	*^Ø
Occidental Petroleum Corp.		32,174		3,091,278	^Ø
Penn West Petroleum Ltd.		17,850		199,741
Petrominerales Ltd.		14,000		160,994	^Ø
Renegade Petroleum Ltd.		31,418		33,447
Royal Dutch Shell PLC ADR		1,630		108,656	^Ø
Talisman Energy, Inc.		32,060		400,033
Trilogy Energy Corp.		1,342		39,373
Western Refining, Inc.		3,895		125,692
Z Energy Ltd.		76,609		244,890	*^Ø
				11,219,016
Paper & Forest Products (0.1%)
Ainsworth Lumber Co. Ltd.		100,834		381,035	*^Ø
Personal Products (0.5%)
Elizabeth Arden, Inc.		12,706		459,830	*^Ø
Prestige Brands Holdings, Inc.		12,450		388,814	*^Ø
The Estee Lauder Cos., Inc. Class A		18,500		1,312,760	^Ø
				2,161,404

See Notes to Schedule of Investments

	Number of Shares		Value†
Pharmaceuticals (4.1%)
AbbVie, Inc.		2,252	$	109,109
Acino Holding AG		500		63,316	*^Ø
Actavis PLC		7,299		1,128,280	*^Ø
Allergan, Inc.		293		26,549	^Ø
AstraZeneca PLC ADR		25,420		1,343,701	^Ø
Bayer AG		190		23,615	^Ø
Bristol-Myers Squibb Co.		28,887		1,517,145	^Ø
Cadence Pharmaceuticals, Inc.		4,910		24,206	*^Ø
Cempra, Inc.		1,477		16,779	*^Ø
Cornerstone Therapeutics, Inc.		21,977		208,122	*^Ø
DepoMed, Inc.		85,526		615,787	*^Ø
Forest Laboratories, Inc.		447		21,023	*
Hi-Tech Pharmacal Co., Inc.		14,000		603,260	^Ø
Impax Laboratories, Inc.		36,440		738,274	*^Ø
Jazz Pharmaceuticals PLC		286		25,952	*^Ø
Johnson & Johnson		15,800		1,463,238	^Ø
Lannett Co., Inc.		75,120		1,773,583	*^Ø
Meda AB Class A		1,690		18,986
Merck & Co., Inc.		805		36,298
Mylan, Inc.		739		27,986	*^Ø
Novartis AG		302		23,448	^Ø
Omthera Pharmaceuticals, Inc.		100		—	*^f
Pfizer, Inc.		100,554		3,084,997	^Ø
Roche Holding AG		118		32,668	^Ø
Roche Holding AG ADR		26,290		1,822,949	^Ø
Salix Pharmaceuticals Ltd.		4,756		341,243	*^Ø
SHIRE PLC ADR		4,410		586,971	^Ø
Sucampo Pharmaceuticals, Inc. Class A		2,187		13,559	*
Taro Pharmaceutical Industries Ltd.		500		39,175	*^Ø
ViroPharma, Inc.		59,536		2,311,188	*^±
Zoetis, Inc.		35,858		1,135,264
				19,176,671

	Number of Shares		Value†
Professional Services (1.1%)
National Technical Systems, Inc.		9,077	$	207,773	*^Ø
Nielsen Holdings NV		11,795		465,195	^Ø
The Dun & Bradstreet Corp.		29,825		3,244,662	^Ø
Towers Watson & Co. Class A		9,350		1,073,473	^Ø
				4,991,103
Real Estate Investment Trusts (1.2%)
American Realty Capital Properties, Inc.		81,890		1,086,680	^Ø
BRE Properties, Inc.		42,655		2,329,390	^Ø
CapLease, Inc.		28,530		242,505	^Ø
Chatham Lodging Trust		16,525		311,662	^Ø
Cole Real Estate Investment, Inc.		24,176		343,299
Columbia Property Trust, Inc.		3,579		80,706	*
CommonWealth REIT		4,613		112,419	^Ø
Gramercy Property Trust, Inc.		6,728		30,747	*
Mid-America Apartment Communities, Inc.		4,871		323,434	^Ø
Newcastle Investment Corp.		57,051		327,473	^Ø
Ryman Hospitality Properties		18,026		665,340
				5,853,655
Real Estate Management & Development (0.6%)
Brookfield Office Properties, Inc.		13,555		253,614	^Ø
Daiwa House Industry Co. Ltd.		59,000		1,176,640	^Ø
DIC Asset AG		18,153		200,875	^Ø
GSW Immobilien AG		692		32,119	^Ø
Pruksa Real Estate PCL		1,324,200		948,744	^fØ
				2,611,992
Road & Rail (0.2%)
Hertz Global Holdings, Inc.		40,967		940,602	*^Ø

	Number of Shares		Value†
Semiconductors & Semiconductor Equipment (0.2%)
Kulicke & Soffa Industries, Inc.		22,556	$	290,972	*^±
LSI Corp.		22,459		190,452	^Ø
Microsemi Corp.		2,237		56,216	*
NXP Semiconductor NV		3,535		148,894	*
Spreadtrum Communications, Inc. ADR		5,128		155,943	^Ø
				842,477
Software (0.7%)
AsiaInfo-Linkage, Inc.		21,158		245,433	*^Ø
Check Point Software Technologies Ltd.		5,879		341,099	*^Ø
Compuware Corp.		140,047		1,495,702	^Ø
Ebix, Inc.		2,000		22,760	^Ø
Ellie Mae, Inc.		2,554		73,810	*^Ø
Nuance Communications, Inc.		47,530		739,567	*
Stonesoft OYJ		5,000		30,210	*^Ø
Symantec Corp.		15,874		360,975
Zynga, Inc. Class A		17,898		64,254	*
				3,373,810
Specialty Retail (0.5%)
American Eagle Outfitters, Inc.		5,823		90,198
CST Brands, Inc.		2,823		91,013	^Ø
Emperor Watch & Jewellery Ltd.		4,240,000		339,069	^Ø
Fielmann AG		481		53,814
Office Depot, Inc.		51,298		286,756	*^Ø
The Men's Wearhouse, Inc.		9,116		385,607	^±Ø
Vitamin Shoppe, Inc.		27,230		1,277,359	*
				2,523,816
Textiles, Apparel & Luxury Goods (1.0%)
Fifth & Pacific Cos., Inc.		8,961		237,377	*^Ø
PVH Corp.		20,675		2,575,485	^Ø
RG Barry Corp.		3,284		62,659
The Jones Group, Inc.		12,419		192,991	^±Ø
Vera Bradley, Inc.		68,600		1,519,490	*
				4,588,002

See Notes to Schedule of Investments

	Number of Shares		Value†
Thrifts & Mortgage Finance (0.8%)
Aareal Bank AG		2,618	$	100,684	*^Ø
Astoria Financial Corp.		31,568		417,013	^Ø
Fox Chase Bancorp., Inc.		6,675		115,277
Hudson City Bancorp., Inc.		322,523		2,896,256	^Ø
Ocwen Financial Corp.		4,707		264,675	*^Ø
				3,793,905
Tobacco (0.2%)
Swedish Match AB		30,047		991,358	^Ø
Trading Companies & Distributors (0.1%)
Edgen Group, Inc.		20,000		239,400	*
Kloeckner & Co. SE		5,817		82,258	*
United Rentals, Inc.		2,200		142,098	*^±
				463,756
Transportation Infrastructure (0.0%)
Macquarie Infrastructure Co., LLC		3,331		182,905	^Ø
Wireless Telecommunication Services (1.2%)
Leap Wireless International, Inc.		77,572		1,248,909	*^Ø
Sprint Corp.		84,837		570,953	*
Telephone & Data Systems, Inc.		11,498		358,508	^Ø
T-Mobile US, Inc.		9,137		253,369	*^Ø
Vodafone Group PLC ADR		91,638		3,374,111
				5,805,850
Total Common Stocks (Cost $216,883,853)	225,094,657
Preferred Stocks (0.5%)
Automobiles (0.0%)
Volkswagen AG, 3.56%		304		77,268
Beverages (0.3%)
Cia de Bebidas das Americas		34,800		1,298,204	^Ø
Commercial Banks (0.1%)
Synovus Financial Corp., Ser. C, 7.88%		2,061		57,007	*^Ø?
Wells Fargo & Co., Ser. L, 7.50%		100		113,900
				170,907

	Number of Shares		Value†
Consumer Finance (0.0%)
Ally Financial, Inc., 7.00%		134	$	128,661	*^ñØ
Diversified Financial Services (0.1%)
Bank of America Corp., Ser. L, 7.25%		161		173,477	*
Real Estate Investment Trusts (0.0%)
Gramercy Property Trust, Inc., Ser. A, 8.13%		869		29,937	*
Strategic Hotels & Resorts, Inc., Ser. B, 8.25%		1,038		23,770	^Ø
Strategic Hotels & Resorts, Inc., Ser. C, 8.25%		891		20,493	*^Ø
				74,200
Thrifts & Mortgage Finance (0.0%)
Astoria Financial Corp., Ser. C, 6.50%		2,029		44,293	*
Federal National Mortgage Association, Ser. S, 8.25%		4,827		34,320	*^Ø?
				78,613
Total Preferred Stocks (Cost $1,983,421)				2,001,330
Exchange Traded Funds (0.5%)
db x-trackers ShortDAX Daily UCITS ETF		2,045		100,124	*^Ø
PowerShares DB U.S. Dollar Index Bullish Fund		105,400		2,278,748	*^Ø
ProShares Short 20+ Year Treasury		3,565		112,476	*^Ø
Total Exchange Traded Funds (Cost $2,537,129)				2,491,348
Investment Companies (0.0%)
Mutual Funds (0.0%)
Nuveen Ohio Quality Income Municipal Fund (Cost $29,377)		2,102		30,016

	Number of Rights		Value†
Rights (0.0%)
Biotechnology (0.0%)
Cubist Pharmaceuticals, Inc.		5,000	$	9,650	*
Pharmaceuticals (0.0%)
Sanofi		48,123		91,434	*^Ø
Total Rights (Cost $92,055)				101,084
	Number of Warrants
Warrants (0.0%)
Insurance (0.0%)
American International Group, Inc.		2,577		54,968	*
Machinery (0.0%)
Xerium Technologies, Inc.		8,437		2,109	*^Ø
Media (0.0%)
Tribune Co.		1,877		125,571	*
Total Warrants (Cost $142,001)				182,648
	Principal Amount
U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government (0.0%)
U.S. Treasury Bonds, 3.13%, due 2/15/43 (Cost $32,103)	$	32,000		28,960	^Ø
Mortgage-Backed Securities (2.4%)
Collateralized Mortgage Obligations (1.5%)
Bear Stearns Asset Backed Securities Trust, Ser. 2004-AC4, Class A1, 5.83%, due 8/25/34		462,768		473,457	^aØ
Citicorp Mortgage Securities REMIC Pass-Through Certificates Trust, Ser. 2005-7, Class 1A4, 5.50%, due 10/25/35		398,822		391,659	^Ø

See Notes to Schedule of Investments

	Principal Amount		Value†
Citicorp Mortgage Securities, Inc., Ser. 2006-4, Class 1A2, 6.00%, due 8/25/36	$	682,006	$	690,189	^Ø
Citicorp Mortgage Securities, Inc., Ser. 2007-8, Class 1A4, 6.00%, due 9/25/37		245,972		239,936	^Ø
First Horizon Mortgage Pass-Through Trust, Ser. 2005-5, Class 1A3, 5.50%, due 10/25/35		336,822		336,442	^Ø

GSR Mortgage
Loan Trust,
Ser. 2005-AR6,
Class 3A2,
2.66%, due
9/25/35 707,986 656,921^?

JP Morgan Mortgage Trust, Ser. 2007-A1, Class 4A1, 2.74%, due 7/25/35	383,338	380,653	^Ø?
MASTR Alternative Loans Trust, Ser. 2004-10, Class 4A1, 6.00%, due 9/25/19	199,887	207,293	^Ø
PHH Mortgage Trust, Ser. 2008-CIM1, Class 21A2, 6.00%, due 5/25/38	291,949	293,315	^Ø
RFMSI Trust, Ser. 2005-SA3, Class 1A, 2.86%, due 8/25/35	437,030	348,054	^Ø?
Structured Asset Securities Corp. Trust, Ser. 2005-6, Class 2A1, 5.50%, due 5/25/35	363,925	370,910	^Ø

	Principal Amount		Value†
WaMu Mortgage Pass-Through Certificates, Ser. 2004-S1, Class 1A11, 5.50%, due 3/25/34	$	265,781	$	273,812	^Ø
Wells Fargo Mortgage Backed Securities Trust, Ser. 2005-AR9, Class 3A2, 2.66%, due 6/25/34		470,324		447,569	^Ø?
Wells Fargo Mortgage Backed Securities Trust, Ser. 2006-13, Class A5, 6.00%, due 10/25/36		410,110		414,348	^Ø
Wells Fargo Mortgage Backed Securities Trust, Ser. 2007-14, Class 1A1, 6.00%, due 10/25/37		896,117		891,391
Wells Fargo Mortgage Backed Securities Trust, Ser. 2007-16, Class 1A7, 6.00%, due 12/28/37		463,979		476,374	^Ø
				6,892,323
Commercial Mortgage-Backed (0.9%)
Boca Hotel Portfolio Trust, Ser. 2013-BOCA, Class E, 3.92%, due 8/15/26		700,000		700,463	^ñ?
COMM Mortgage Trust, Ser. 2006-FL12, Class F, 0.51%, due 12/15/20		454,987		438,676	^ñ?
Credit Suisse First Boston Commercial Mortgage Trust, Ser. 2003-C3, Class H, 5.16%, due 5/15/38		600,000		594,191	^ñ?

	Principal Amount		Value†
Credit Suisse Mortgage Capital Certificates, Ser. 2006-TF2A, Class KERE, 0.77%, due 9/15/21	$	170,781	$	165,221	^ñØ?
LB-UBS Commercial Mortgage Trust, Ser. 2006-C4, Class AJ, 5.88%, due 6/15/38		500,000		517,480	^Ø?
LB-UBS Commercial Mortgage Trust, Ser. 2007-C1, Class AJ, 5.48%, due 2/15/40		900,000		919,163	^Ø
NorthStar, Ser. 2013-1A, Class B, 5.17%, due 8/25/29		500,000		496,719	^ñØ?
UBS Commercial Mortgage Trust, Ser. 2007-FL1, Class F, 0.75%, due 7/15/24		475,000		426,597	^ñØ?
				4,258,510
Total Mortgage-Backed Securities (Cost $11,172,903)				11,150,833
Asset-Backed Securities (0.4%)
Countrywide Asset-Backed Certificates, Ser. 2005-7, Class AF4, 4.87%, due 10/25/35		520,813		522,074	^Ø?
JP Morgan Mortgage Acquisition Corp., Ser. 2007-CH1, Class AF3, 5.50%, due 11/25/36		789,961		801,357	^aØ
Structured Asset Securities Corp. Mortgage Loan Trust, Ser. 2005-4XS, Class 1A3, 5.00%, due 3/25/35		594,087		609,836	^aØ
Total Asset-Backed Securities (Cost $1,941,161)				1,933,267

See Notes to Schedule of Investments

	Principal Amount		Value†
Corporate Debt Securities (1.1%)
Aerospace & Defense (0.0%)
Alliant Techsystems, Inc., 5.25%, due 10/1/21	$	15,000	$	15,094	^ñ
Building Products (0.0%)
USG Corp., 5.88%, due 11/1/21		154,000		157,080	^ñ
Chemicals (0.1%)
Montell Finance Co. BV, 8.10%, due 3/15/27		127,000		165,773	^ñØ
Commercial Services & Supplies (0.0%)
Harland Clarke Holdings Corp., 9.50%, due 5/15/15		36,000		36,090	^Ø
Communications Equipment (0.0%)
Avaya, Inc., 10.50%, due 3/1/21		109,000		94,830	^ñ
Computers & Peripherals (0.1%)
Seagate HDD Cayman, 3.75%, due 11/15/18		310,000		310,000	^ñ
Diversified Financial Services (0.1%)
Lehman Brothers Holdings, Inc., 6.88%, due 5/2/18		1,000,000		217,500	^≠Ø
Diversified Telecommunication Services (0.2%)
Intelsat Jackson Holdings SA, 5.50%, due 8/1/23		863,000		832,795	^ñØ
Level 3 Financing, Inc., 6.13%, due 1/15/21		154,000		156,695	^ñ
				989,490
Electric Utilities (0.1%)
Energy Future Intermediate Holding Co. LLC, 11.00%, due 10/1/21		50,000		54,875	^Ø
Energy Future Intermediate Holding Co. LLC, 12.25%, due 3/1/22		428,000		492,200	^ñ
				547,075

	Principal Amount		Value†
Energy Equipment & Services (0.0%)
Pacific Drilling SA, 8.25%, due 2/23/15	$	100,000	$	105,250	^Ø
Hotels, Restaurants & Leisure (0.1%)
Caesars Entertainment Operating Co., Inc., 11.25%, due 6/1/17		165,000		164,587	^Ø
Caesars Entertainment Resort Properties LLC, 8.00%, due 10/1/20		253,000		253,633	^ñØ
Mohegan Tribal Gaming Authority, 9.75%, due 9/1/21		167,000		179,943	^ñØ
				598,163
Independent Power Producers & Energy Traders (0.0%)
Edison Mission Energy, 7.00%, due 5/15/17		168,000		122,640	^≠
Insurance (0.1%)
Ambac Assurance Corp., 5.10%, due 6/7/20		363,000		323,070	^≠ñØ
Internet Software & Services (0.1%)
Ancestry.com, Inc., 9.63%, due 10/15/18		217,000		221,882	^cñ
Media (0.0%)
Gray Television, Inc., 7.50%, due 10/1/20		71,000		74,373	^ñ
Oil, Gas & Consumable Fuels (0.0%)
Kinder Morgan, Inc., 5.00%, due 2/15/21		31,000		31,000	^ñ
Kinder Morgan, Inc., 5.63%, due 11/15/23		38,000		38,000	^ñ
				69,000
Pharmaceuticals (0.0%)
Capsugel SA, 7.00%, due 5/15/19		155,000		155,000	^cñ
Semiconductors & Semiconductor Equipment (0.0%)
Freescale Semiconductor, Inc., 6.00%, due 1/15/22		39,000		39,439	^ñ

	Principal Amount		Value†
Software (0.1%)
Audatex North America, Inc., 6.13%, due 11/1/23	$	284,000	$	288,260	^ñ
Specialty Retail (0.0%)
Chinos Intermediate Holdings A, Inc., 7.75%, due 5/1/19		154,000		154,962	^cñ
Transportation Infrastructure (0.1%)
Navios Maritime Acquisition Corp. / Navios Acquisition Finance US, Inc., 8.13%, due 11/15/21		308,000		311,080	^ñ
Wireless Telecommunication Services (0.0%)
Clearwire Communications LLC / Clearwire Finance, Inc., 12.00%, due 12/1/15		92,000		95,404	^ñØ
Total Corporate Debt Securities (Cost $4,900,456)				5,091,455
Convertible Corporate Debt Securities (0.0%)
Communications Equipment (0.0%)
Nortel Networks Corp., 1.75%, due 4/15/12 (Cost $81,340)		83,000		81,962	^Ø≠
Bank Loan Obligations^?(8.1%)
Aerospace & Defense (0.1%)
Consolidated Precision Products Corp., 2nd Lien Term Loan, due 4/21/23		500,000		503,750	^{¢^^Ñ}
Auto Parts & Equipment (0.1%)
Metaldyne LLC, Term Loan B, due 12/18/18		450,000		452,812	^{¢^^}
Building Products (0.4%)
Continental Building Products LLC, 8.50%, due 2/15/21		500,000		500,000	^Ø

See Notes to Schedule of Investments

	Principal Amount		Value†
Quikrete Holdings, Inc., 1st Lien Term Loan, 4.00%, due 9/18/20	$	500,000	$	501,875	^Ø
Quikrete Holdings, Inc., 2nd Lien Term Loan, 7.00%, due 3/19/21		60,000		61,350	^Ø
Tomkins Air Distribution Technologies, 2nd Lien Term Loan, 9.25%, due 10/31/20		600,000		608,250	^Ø
				1,671,475
Chemicals (0.1%)
Ascend Performance Materials LLC, Term Loan B, 6.75%, due 4/4/18		205,000		194,238
OXEA, 2nd Lien Term Loan, 8.25%, due 6/5/20		49,000		49,582	^Ø
Royal Adhesives & Sealants LLC, 2nd Lien Term Loan, 9.75%, due 12/31/20		87,000		87,000	^ØÑ
				330,820
Commercial Services & Supplies (0.6%)
Eastman Kodak Co., 2nd Lien Term Loan, 10.75%, due 7/31/20		250,000		250,938	^Ø
Eastman Kodak Co., Term Loan, 7.25%, due 7/31/19		498,750		496,047	^Ø
GCA Services Group, Inc., 2nd Lien Term Loan, 9.25%, due 12/31/19		77,000		77,770	^Ø
Insight Global, Inc., due 10/31/19		500,000		500,000	^{¢^^}
Sedgwick Claims Management Services, Inc., 1st Lien Term Loan, 4.25%, due 6/7/18		179,550		180,561	^Ø

	Principal Amount		Value†
Sedgwick Claims Management Services, Inc., 2nd Lien Term Loan, 8.00%, due 12/7/18	$	330,000	$	335,362	^Ø
TriNET HR Corp., 1st Lien Term Loan B2, 5.00%, due 8/30/19		500,000		495,625	^Ø
TriNET HR Corp., 2nd Lien Term Loan, 8.75%, due 12/30/19		500,000		492,190	^Ø
				2,828,493
Communications Equipment (0.2%)
Sorenson Communications, Inc., Term Loan, 9.50%, due 10/31/14		1,103,169		1,115,579	^{Ø¢^^}
Computers & Peripherals (0.3%)
Dell, Inc., Term Loan B1, due 3/11/20		1,334,000		1,325,796	^{Ø¢^^}
Diversified Consumer Services (0.0%)
Coinmach Service Corp., Term Loan, 5.50%, due 11/15/19		250,000		249,375	^Ø
Diversified Financial Services (0.3%)
Duff & Phelps Corp., Term Loan B, due 4/23/20		950,000		949,411	^{¢^^}
Guggenheim Partners LLC, Term Loan B, 4.25%, due 12/31/18		206,000		206,944	^Ø
Walter Investment Management Corp., Term Loan, 5.75%, due 11/15/17		237,500		239,528	^Ø
				1,395,883
Diversified Telecommunication Services (0.2%)
Fairpoint Communications, Inc., Term Loan B, 7.50%, due 2/14/19		528,839		538,606	^Ø¢

	Principal Amount		Value†
Global Telecom Link Corp., 2nd Lien Term Loan, 9.00%, due 5/21/20	$	325,000	$	314,438	^Ø
Securus Technologies Holdings, Inc., 2nd Lien Term Loan, 9.00%, due 4/2/21		59,000		58,361	^Ø
				911,405
Electronic Equipment, Instruments & Components (0.2%)
Excelitas Technologies Corp., 1st Lien Term Loan, due 10/23/20		935,000		935,000	^{¢^^}
Excelitas Technologies Corp., Term Loan, due 10/23/20		65,000		65,000	^{¢^^}
				1,000,000
Energy Equipment & Services (0.1%)
Alinta Energy Holdings Pty. Ltd., due 12/31/20		25,789		25,435	^Ø¢††
Alinta Energy Holdings Pty. Ltd., 6.37%, due 12/31/20		394,211		388,790	^Ø¢
Stallion Oilfield Holdings, Inc., Term Loan, 8.00%, due 6/3/18		148,628		151,414	^ØÑ
Texas Competitive Holdings LLC, Extended Term Loan, 4.67%, due 10/10/17		106,000		70,593	^Ø
				636,232
Food Products (0.2%)
CTI Foods Holding Co., LLC, 2nd Lien Term Loan, 8.25%, due 6/30/19		65,000		64,675	^Ø
H.J. Heinz Holding Corp., due 6/7/19		254,363		255,660	^Ø¢

See Notes to Schedule of Investments

	Principal Amount		Value†
Performance Food Group, Inc., 2nd Lien Term Loan, 6.25%, due 10/29/19	$	498,750	$	497,089	^Ø
				817,424
Health Care Equipment & Supplies (0.0%)
Carestream Health, Inc., 2nd Lien Term Loan, 9.50%, due 12/5/19		93,000		93,077	^Ø
Health Care Providers & Services (0.4%)
Genesis HealthCare LLC, Term Loan, 10.00%, due 10/2/17		183,494		187,164	^Ø
Gentiva Health Services, Inc., Term Loan B, due 10/16/19		1,500,000		1,491,090	^{Ø¢^^}
				1,678,254
Health Care Technology (0.1%)
The TriZetto Group Inc., 4.75%, due 4/26/18		104,732		97,401	^Ø
The TriZetto Group Inc., 2nd Lien Term Loan, 8.50%, due 3/27/19		500,000		435,000	^ÑØ
				532,401
Hotels, Restaurants & Leisure (1.0%)
Bally Technologies, Inc., 1st Lien Term Loan B, due 8/21/20		500,000		501,250	^{Ø¢^^}
Caesars Entertainment Corp., 1st Lien Term Loan, 7.00%, due 10/9/20		600,000		591,096	^Ø¢
Harrah's Entertainment, Inc., Term Loan B4, 9.50%, due 10/31/16		106,447		106,269	^Ø¢
Harrah's Entertainment, Inc., Term Loan B5, 4.49%, due 1/28/18		2,000,000		1,833,880	^{Ø¢^^}

	Principal Amount		Value†
Harrah's Entertainment, Inc., Term Loan B6, 5.49%, due 1/28/18	$	1,100,000	$	1,030,931	^Ø
Hilton Hotels Holdings Corp., Term Loan B2, 4.00%, due 9/23/20		750,000		754,140	^Ø
				4,817,566
Independent Power Producers & Energy Traders (0.2%)
Calpine Corp., Term Loan, due 10/30/20		1,000,000		1,006,250	^{¢^^}
Insurance (0.2%)
Asurion LLC, Term Loan B2, 3.50%, due 6/19/20		778,050		762,979	^Ø
Internet Software & Services (0.5%)
Digital Insight Corp., 1st Lien Term Loan, 4.75%, due 8/1/19		500,000		499,790	^Ø¢
Digital Insight Corp., 2nd Lien Term Loan, 8.75%, due 8/1/20		500,000		501,665	^Ø
Manwin Licensing International, 1st Lien Term Loan, 14.00%, due 10/4/18		1,482,000		1,467,180	^Ñ
Travelport Ltd., due 1/31/16		157,000		162,495	^Ø¢
				2,631,130
IT Services (0.1%)
Virtu Financial LLC, Term Loan, 5.75%, due 7/1/16		498,230		500,876	^Ø
Media (0.3%)
Advanstar, Inc., 2nd Lien Term Loan, 9.50%, due 5/14/20		62,000		61,896	^Ø
Clear Channel Capital I LLC, due 1/30/19		310,000		294,540	^Ø¢

	Principal Amount		Value†
Gatehouse Media Operating Inc., Term Loan C, 2.52%, due 8/24/14	$	503	$	197	^{¢^^}
Lee Enterprises, Inc., due 12/31/15		231,000		228,459	^¢
Penton Media, Inc., 2nd Lien Term Loan, 9.00%, due 10/1/20		136,000		134,556	^Ø
Springer Science+Business Media, Term Loan B2, 5.00%, due 7/23/20		750,000		749,768	^Ø
				1,469,416
Metals & Mining (0.1%)
Fairmount Minerals Ltd., Term Loan B, 5.00%, due 9/3/19		500,000		504,645	^Ø
Tube City IMS LLC, Term Loan B, due 10/2/20		204,000		204,384	^{Ø¢^^}
				709,029
Multiline Retail (0.1%)
Hudson's Bay Co., 2nd Lien Term Loan, due 10/8/21		300,000		307,875	^{¢^^}
Oil, Gas & Consumable Fuels (0.2%)
Bowie Resources LLC, 1st Lien Term Loan, 6.75%, due 8/7/20		203,000		204,015	^Ø
Bowie Resources LLC, 2nd Lien Term Loan, 11.75%, due 12/31/20		45,000		44,100	^ØÑ
NFR Energy LLC, 2nd Lien Term Loan, 8.75%, due 12/31/18		500,000		501,875	^Ø
Oxbow Carbon & Minerals LLC, 2nd Lien Term Loan, 8.00%, due 1/18/20		52,000		52,910	^Ø

See Notes to Schedule of Investments

	Principal Amount		Value†
PowerTeam Services LLC, 2nd Lien Term Loan, 8.25%, due 11/15/20	$	52,000	$	51,588	^Ø¢
Samson Resources Co., due 9/25/18		250,000		251,798	^Ø¢
				1,106,286
Pharmaceuticals (0.2%)
Amneal Pharmaceuticals LLC, Term Loan B, due 10/30/20		556,000		556,000	^{¢^^}
PRA Holdings, Inc., Term Loan, 5.00%, due 12/31/20		500,000		500,000	^Ø
				1,056,000
Software (1.6%)
Ascend Learning LLC, Term Loan B, 7.00%, due 12/31/20		997,455		994,962	^Ø
Avaya Holdings Corp., due 10/26/17		196,675		181,643	^Ø¢
Mitchell International, Inc., 2nd Lien Term Loan, due 10/1/21		197,000		199,709	^{Ø¢^^}
Mitchell International, Inc., Term Loan B1, 4.50%, due 10/1/20		170,000		171,063	^Ø
P2 Energy Solutions, Inc., 1st Lien Term Loan, due 10/22/20		637,000		637,000	^{¢^^Ñ}
P2 Energy Solutions, Inc., 2nd Lien Term Loan, due 4/30/21		605,000		605,000	^{¢^^Ñ}
Progressive Solutions, Inc., 1st Lien Term Loan, due 10/16/20		1,000,000		1,002,500	^{¢^^Ñ}
RedPrairie Corp., 1st Lien Term Loan, 6.75%, due 12/14/18		340,642		343,793	^Ø¢

	Principal Amount		Value†
Renaissance Learning, Inc., 1st Lien Term Loan, due 10/16/20	$	1,500,000	$	1,498,755	^{Ø¢^^}
Renaissance Learning, Inc., 2nd Lien Term Loan, due 4/16/19		1,000,000		1,007,500	^{Ø¢^^}
StoneRiver Holdings, Inc., 1st Lien Term Loan, 4.50%, due 11/29/19		61,731		61,396	^Ø
StoneRiver Holdings, Inc., 2nd Lien Term Loan, 8.50%, due 5/14/20		592,353		596,428	^Ø
Websense, Inc., 2nd Lien Term Loan, 8.25%, due 12/18/20		54,000		53,932	^Ø
				7,353,681
Trading Companies & Distributors (0.1%)
HD Supply, Inc., 1st Lien Term Loan, due 10/12/17		349,000		351,181	^��
Transportation Infrastructure (0.2%)
Livingston International, Inc., 2nd Lien Term Loan, 9.00%, due 3/27/20		128,038		128,358	^Ø
Navios Maritime Partners LP, Term Loan, due 6/18/30		750,000		759,375	^{¢^^}
				887,733
Total Bank Loan Obligations (Cost $38,163,134)				38,502,778
	Number of Contracts
Purchased Options (0.4%)
Call Options (0.0%)
Astoria Financial Corp., Call, Jan 2014 @ 12.5		45		4,050
Astoria Financial Corp., Call, Jan 2014 @ 15		65		325
BlackBerry Ltd., Call, Nov 2013 @ 15		27		—

	Number of Contracts		Value†
BlackBerry Ltd., Call, Dec 2013 @ 9		22	$	660
BlackBerry Ltd., Call, Dec 2013 @ 10		63		819
BlackBerry Ltd., Call, Dec 2013 @ 11		58		406
Cablevision Systems Corp., Call, Dec 2013 @ 20		82		820
Campbell Soup Co., Call, Nov 2013 @ 45		22		—
Cia de Minas Buenaventura SAA, Call, Dec 2013 @ 16		55		1,925
Fusion-io, Inc., Call, Dec 2013 @ 19		44		176
General Motors Co., Call, Nov 2013 @ 35		13		2,873	^±
Iron Mountain, Inc., Call, Nov 2013 @ 32.5		45		450	^±
NII Holdings, Inc., Call, Dec 2013 @ 9		80		160
NII Holdings, Inc., Call, Dec 2013 @ 10		54		108
Penn West Petroleum Ltd., Call, Nov 2013 @ 12		75		750
Penn West Petroleum Ltd., Call, Dec 2013 @ 15		138		—
Synovus Financial Corp., Call, Jan 2014 @ 3.5		54		540
Synovus Financial Corp., Call, Jan 2014 @ 4		37		—
The Active Network, Inc., Call, Jan 2014 @ 15		27		—
US Airways Group, Inc., Call, Jan 2014 @ 20		39		11,661
Valley National Bancorp., Call, Dec 2013 @ 11		12		48

See Notes to Schedule of Investments

	Number of Contracts		Value†
Valley National Bancorp., Call, Dec 2013 @ 12		71	$	—
Weatherford International Ltd., Call, Jan 2014 @ 18		60		2,640
Zynga, Inc., Call, Dec 2013 @ 5		56		112
				28,523
Put Options (0.4%)
American Capital Agency Corp., Put, Dec 2013 @ 15		8		—
American Capital Agency Corp., Put, Dec 2013 @ 20		18		378
American Capital Agency Corp., Put, Jan 2014 @ 17		116		812
Annaly Capital Management, Inc., Put, Dec 2013 @ 10		36		180
AsiaInfo-Linkage, Inc., Put, Jan 2014 @ 11		26		260
BMC Software, Inc., Put, Nov 2013 @ 45		22		—
ICU Medical, Inc., Put, Nov 2013 @ 70		20		14,200
Iron Mountain, Inc., Put, Nov 2013 @ 22.5		71		355
iShares Russell 2000 ETF, Put, Dec 2013 @ 110		12		3,528	^±
iShares Russell 2000 ETF, Put, Jun 2014 @ 96		284		83,212	^±
iShares Russell 2000 Index Fund, Put, Nov 2013 @ 90		59		—	^±
Lamar Advertising Co., Put, Nov 2013 @ 40		135		3,375
Leap Wireless International, Inc., Put, Apr 2014 @ 13		73		1,460

	Number of Contracts		Value†
Lender Processing Services, Inc., Put, Dec 2013 @ 29		22	$	—
MAKO Surgical Corp., Put, Jan 2014 @ 20		13		130
MAKO Surgical Corp., Put, Jan 2014 @ 27.5		64		640
Netflix, Inc., Put, Dec 2013 @ 310		1		1,445
Russell 2000 Index, Put, Nov 2013 @ 1070		8		3,560
Russell 2000 Index, Put, Dec 2013 @ 1080		5		9,560
Russell 2000 Index, Put, Dec 2013 @ 1100		3		7,950
Russell 2000 Index, Put, Dec 2013 @ 1110		5		15,555
Russell 2000 Index, Put, Jan 2014 @ 1100		4		14,100
S&P 500 Index, Put, Dec 2013 @ 1680		2		1,990
S&P 500 Index, Put, Dec 2013 @ 1705		1		1,385
S&P 500 Index, Put, Dec 2013 @ 1720		2		3,508
S&P 500 Index, Put, Dec 2013 @ 1750		2		6,000
S&P 500 Index, Put, Dec 2013 @ 1760		3		9,570
S&P 500 Index, Put, Dec 2013 @ 1770		5		16,500
S&P 500 Index, Put, Jan 2014 @ 1730		3		9,915
S&P 500 Index, Put, Jan 2014 @ 1770		2		9,980
Safeway, Inc., Put, Dec 2013 @ 33		27		2,565

	Number of Contracts		Value†
SPDR S&P 500 ETF Trust, Put, Nov 2013 @ 169		4	$	100
SPDR S&P 500 ETF Trust, Put, Dec 2013 @ 164		1,200		97,200	^±
SPDR S&P 500 ETF Trust, Put, Dec 2013 @ 166		2,000		228,000	^±
SPDR S&P 500 ETF Trust, Put, Dec 2013 @ 167		4		424	^±
SPDR S&P 500 ETF Trust, Put, Dec 2013 @ 168		1,300		169,000	^±
SPDR S&P 500 ETF Trust, Put, Dec 2013 @ 172		5		1,035	^±
SPDR S&P 500 ETF Trust, Put, Dec 2013 @ 173		13		3,081	^±
SPDR S&P 500 ETF Trust, Put, Mar 2014 @ 171		2,000		880,000	^±
Spreadtrum Communications, Inc., Put, Nov 2013 @ 23		14		—
Tesla Motors, Inc., Put, Dec 2013 @ 165		2		3,576
The Active Network, Inc., Put, Jan 2014 @ 12.5		27		—
Theravance, Inc., Put, Jan 2014 @ 39		235		110,450	^±
Tower Group International Ltd., Put, Nov 2013 @ 6		10		2,300
ViroPharma, Inc., Put, Nov 2013 @ 35		33		2,145	^±
ViroPharma, Inc., Put, Jan 2014 @ 35		319		95,700
WisdomTree Japan Hedged Equity Fund, Put, Nov 2013 @ 45		24		360

See Notes to Schedule of Investments

	Number of Contracts			Value†
WisdomTree Japan Hedged Equity Fund, Put, Nov 2013 @ 46		30		$	750
WisdomTree Japan Hedged Equity Fund, Put, Nov 2013 @ 47		12			540
					1,816,774
Total Purchased Options (Cost $3,995,043)					1,845,297
	Principal Amount
Short-Term Investments (39.9%)
U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government (0.0%)
U.S. Treasury Bills, 0.21%, due 11/7/13	$	120,000			120,000
	Number of Shares
Money Market Fund (39.9%)
Dreyfus Treasury Prime Cash Management		187,447,683			187,447,681	^Ø
Total Short-Term Investments (Cost $187,567,677)					187,567,681
Total Long Positions (101.2%) (Cost $469,521,653)					476,103,316	^##
Cash, receivables and other assets, less liabilities (18.6%)					87,006,561	^{±Ø†††}
Short Positions (see summary below) ((19.8)%)					(92,813,549	)
Total Net Assets (100.0%)	$470,296,328
Short Positions ((19.8)%)
Common Stocks Sold Short (10.7%)^£ØØ
Aerospace & Defense (0.3%)
AAR Corp.		(21,650	)		(633,912	)
Rockwell Collins, Inc.		(8,050	)		(562,131	)
					(1,196,043	)
Air Freight & Logistics (0.2%)
bpost SA		(29,679	)		(624,195	)*
Expeditors International of Washington, Inc.		(8,000	)		(362,320	)
					(986,515	)

	Number of Shares			Value†
Airlines (0.0%)
United Continental Holdings, Inc.		(4	)	$	(136	)*
US Airways Group, Inc.		(2,279	)		(50,069	)*
					(50,205	)
Automobiles (0.1%)
Daihatsu Motor Co. Ltd.		(29,100	)		(562,882	)
General Motors Co.		(1,417	)		(52,358	)*^±
					(615,240	)
Biotechnology (0.5%)
Acorda Therapeutics, Inc.		(448	)		(13,713	)*
Agios Pharmaceuticals, Inc.		(11,237	)		(260,249	)*
Alnylam Pharmaceuticals, Inc.		(269	)		(15,497	)*
Arena Pharmaceuticals, Inc.		(72,000	)		(316,080	)*
BioCryst Pharmaceuticals, Inc.		(1,443	)		(8,304	)*
Bluebird Bio, Inc.		(8,500	)		(180,625	)*
Cellular Dynamics International, Inc.		(448	)		(6,321	)*
Foundation Medicine, Inc.		(4,092	)		(130,453	)*
Halozyme Therapeutics, Inc.		(23,480	)		(273,542	)*
ImmunoGen, Inc.		(16,460	)		(270,932	)*
Insmed, Inc.		(896	)		(12,759	)*
Intrexon Corp.		(6,600	)		(139,920	)*
Medivation, Inc.		(3,570	)		(213,700	)*
Myriad Genetics, Inc.		(431	)		(10,508	)*
Tetraphase Pharmaceuticals, Inc.		(1,343	)		(16,828	)*
ThromboGenics NV		(2,855	)		(78,846	)*
United Therapeutics Corp.		(5,063	)		(448,177	)*
					(2,396,454	)
Capital Markets (0.1%)
Greenhill & Co., Inc.		(11,275	)		(578,407	)

	Number of Shares			Value†
Chemicals (0.9%)
BASF SE		(6,019	)	$	(626,243	)
Innophos Holdings, Inc.		(11,850	)		(593,922	)
Koninklijke DSM NV		(7,261	)		(550,012	)
Koppers Holdings, Inc.		(15,000	)		(667,650	)
Potash Corp of Saskatchewan, Inc.		(13,400	)		(416,740	)
Rockwood Holdings, Inc.		(10,900	)		(689,425	)
The Sherwin-Williams Co.		(1,200	)		(225,600	)
Umicore SA		(11,800	)		(562,914	)
					(4,332,506	)
Commercial Banks (0.8%)
M&T Bank Corp.		(26,292	)		(2,958,639	)
PacWest Bancorp.		(9,688	)		(368,628	)
Umpqua Holdings Corp.		(10,875	)		(178,024	)
Union First Market Bankshares Corp.		(625	)		(15,075	)
United Bankshares, Inc.		(8,339	)		(246,668	)
					(3,767,034	)
Communications Equipment (0.0%)
BlackBerry Ltd.		(4,479	)		(35,429	)*
Computers & Peripherals (0.1%)
NCR Corp.		(7,200	)		(263,160	)*
Construction & Engineering (0.2%)
Layne Christensen Co.		(38,350	)		(741,689	)*
Containers & Packaging (0.2%)
Bemis Co., Inc.		(11,150	)		(444,885	)
Rock Tenn Co. Class A		(5,700	)		(609,957	)
					(1,054,842	)
Diversified Consumer Services (0.0%)
H&R Block, Inc.		(3,046	)		(86,628	)
Diversified Financial Services (0.9%)
Intercontinental Exchange, Inc.		(20,789	)		(4,006,664	)*
Diversified Telecommunication Services (0.2%)
Verizon Communications, Inc.		(16,782	)		(847,659	)

See Notes to Schedule of Investments

	Number of Shares			Value†
Food & Staples Retailing (0.4%)
George Weston Ltd.		(2,221	)	$	(180,935	)
Loblaw Cos. Ltd.		(3,715	)		(169,921	)
Shoprite Holdings Ltd.		(28,925	)		(529,589	)
Spartan Stores, Inc.		(760	)		(17,883	)
Sysco Corp.		(17,500	)		(565,950	)
The Kroger Co.		(400	)		(17,136	)
The Spar Group Ltd.		(42,853	)		(548,536	)
					(2,029,950	)
Food Products (0.4%)
Campbell Soup Co.		(13,950	)		(593,851	)
Marine Harvest ASA		(805,821	)		(944,832	)
WhiteWave Foods Co. Class A		(13,751	)		(275,158	)*
					(1,813,841	)
Health Care Equipment & Supplies (0.4%)
Abaxis, Inc.		(2,350	)		(83,966	)
Cynosure, Inc. Class A		(11,780	)		(254,566	)*
Edwards Lifesciences Corp.		(3,870	)		(252,285	)*
Mazor Robotics Ltd. ADR		(9,400	)		(169,623	)*
Neogen Corp.		(6,360	)		(293,959	)*
Sirona Dental Systems, Inc.		(10,340	)		(747,065	)*
					(1,801,464	)
Health Care Providers & Services (0.9%)
Aetna, Inc.		(273	)		(17,117	)
Catamaran Corp.		(11,500	)		(540,040	)*
Community Health Systems, Inc.		(11,628	)		(507,330	)
Express Scripts Holding Co.		(7,880	)		(492,657	)*
Fresenius Medical Care AG & Co. KGaA ADR		(8,010	)		(263,689	)
Health Management Associates, Inc. Class A		(19,634	)		(251,708	)*
Laboratory Corp. of America Holdings		(2,630	)		(265,367	)*
LifePoint Hospitals, Inc.		(8,230	)		(424,997	)*
Owens & Minor, Inc.		(8,550	)		(319,941	)

	Number of Shares			Value†
Quest Diagnostics, Inc.		(4,270	)	$	(255,816	)
WellPoint, Inc.		(8,910	)		(755,568	)
					(4,094,230	)
Health Care Technology (0.1%)
athenahealth, Inc.		(1,980	)		(264,350	)*
HMS Holdings Corp.		(6,310	)		(133,330	)*
Vocera Communications, Inc.		(7,990	)		(134,472	)*
					(532,152	)
Hotels, Restaurants & Leisure (0.1%)
Panera Bread Co. Class A		(3,050	)		(481,656	)*
Household Durables (0.2%)
Lennar Corp. Class A		(30,442	)		(1,082,213	)
Household Products (0.1%)
Church & Dwight Co., Inc.		(9,425	)		(614,039	)
Insurance (0.5%)
ACE Ltd.		(4,500	)		(429,480	)
Aspen Insurance Holdings Ltd.		(15,700	)		(612,457	)
Axis Capital Holdings Ltd.		(13,550	)		(642,541	)
Fidelity National Financial, Inc. Class A		(25,308	)		(712,420	)
					(2,396,898	)
Internet & Catalog Retail (0.2%)
HSN, Inc.		(16,550	)		(867,220	)
Netflix, Inc.		(45	)		(14,512	)*
TripAdvisor, Inc.		(2,000	)		(165,420	)*
					(1,047,152	)
Internet Software & Services (0.0%)
Trulia, Inc.		(1,088	)		(43,487	)*
Machinery (0.4%)
Deere & Co.		(10,220	)		(836,405	)
Illinois Tool Works, Inc.		(7,850	)		(618,501	)
Kennametal, Inc.		(12,450	)		(572,700	)
					(2,027,606	)
Media (0.9%)
Comcast Corp. Class A		(318	)		(15,130	)
Liberty Global PLC Class A		(26,540	)		(2,079,940	)*
Sirius XM Radio, Inc.		(157,858	)		(595,125	)
Time Warner, Inc.		(18,800	)		(1,292,312	)
					(3,982,507	)

	Number of Shares			Value†
Multiline Retail (0.0%)
JC Penney Co., Inc.		(19,914	)	$	(149,355	)*
Oil, Gas & Consumable Fuels (0.0%)
Royal Dutch Shell PLC ADR		(1,629	)		(113,248	)
Paper & Forest Products (0.0%)
Louisiana-Pacific Corp.		(6,540	)		(111,245	)*
Pharmaceuticals (0.6%)
Ampio Pharmaceuticals, Inc.		(1,789	)		(15,815	)*
Aratana Therapeutics, Inc.		(537	)		(10,718	)*
Hospira, Inc.		(5,040	)		(204,221	)*
Pacira Pharmaceuticals, Inc.		(21,225	)		(1,072,075	)*
Perrigo Co.		(10,775	)		(1,485,765	)
					(2,788,594	)
Real Estate Investment Trusts (0.6%)
American Realty Capital Properties, Inc.		(18,110	)		(240,320	)
Annaly Capital Management, Inc.		(2,282	)		(26,905	)
AvalonBay Communities, Inc.		(893	)		(111,669	)
Equity Residential		(1,980	)		(103,673	)
Essex Property Trust, Inc.		(3,447	)		(554,967	)
Host Hotels & Resorts, Inc.		(7,918	)		(146,879	)
Mid-America Apartment Communities, Inc.		(4,871	)		(323,434	)
National Retail Properties, Inc.		(9,262	)		(318,613	)
Realty Income Corp.		(17,317	)		(721,253	)
					(2,547,713	)
Semiconductors & Semiconductor Equipment (0.1%)
Marvell Technology Group Ltd.		(24,400	)		(292,800	)
Software (0.2%)
SAP AG ADR		(8,000	)		(626,800	)
VMware, Inc. Class A		(2,148	)		(174,589	)*
					(801,389	)

See Notes to Schedule of Investments

	Number of Shares			Value†
Specialty Retail (0.0%)
Williams-Sonoma, Inc.		(1,247	)	$	(65,393	)
Textiles, Apparel & Luxury Goods (0.0%)
Michael Kors Holdings Ltd.		(1,140	)		(87,723	)*
Thrifts & Mortgage Finance (0.0%)
Provident New York Bancorp.		(6,312	)		(73,977	)
Trading Companies & Distributors (0.1%)
HD Supply Holdings, Inc.		(19,650	)		(396,734	)*
Wireless Telecommunication Services (0.0%)
NII Holdings, Inc.		(5,434	)		(18,693	)*
Total Common Stocks Sold Short (Proceeds $(49,090,308))					(50,352,534	)
Exchange Traded Funds Sold Short (8.7%)^£ØØ
CurrencyShares Euro Trust		(5,700	)		(765,453	)*
Energy Select Sector SPDR Fund		(52,045	)		(4,496,167	)
First Trust ISE-Revere Natural Gas Index Fund		(1,871	)		(36,597	)
Health Care Select Sector SPDR Fund		(68,080	)		(3,590,539	)
iShares iBoxx $ High Yield Corporate Bond ETF		(7,129	)		(665,849	)
iShares MSCI Emerging Markets ETF		(71,368	)		(3,030,285	)
iShares MSCI Germany ETF		(2,894	)		(84,939	)
iShares MSCI Malaysia ETF		(7,950	)		(126,087	)
iShares MSCI United Kingdom ETF		(6,133	)		(124,806	)
iShares Nasdaq Biotechnology ETF		(12,870	)		(2,639,894	)
iShares Russell 2000 Fund		(8,521	)		(930,749	)
iShares U.S. Real Estate ETF		(12,107	)		(801,120	)
Market Vectors Biotech ETF		(20,290	)		(1,663,780	)
Market Vectors Gold Miners ETF		(2,012	)		(50,521	)

	Number of Shares			Value†
Market Vectors Oil Service ETF		(61,385	)	$	(3,045,924	)
Market Vectors Semiconductor ETF		(6,320	)		(260,194	)
Nomura TOPIX Exchange Traded Fund		(19,864	)		(245,851	)
SPDR Barclays High Yield Bond ETF		(5,019	)		(203,922	)
SPDR S&P 500 ETF Trust		(78,800	)		(13,847,524	)^±
SPDR S&P Biotech ETF		(16,228	)		(1,930,970	)
SPDR S&P Homebuilders ETF		(2,782	)		(84,907	)
SPDR S&P Regional Banking ETF		(12,358	)		(461,571	)
Utilities Select Sector SPDR Fund		(1,445	)		(56,052	)
Vanguard REIT ETF		(19,017	)		(1,314,455	)
Total Exchange Traded Funds Sold Short (Proceeds $(39,225,490))					(40,458,156	)
	Principal Amount
U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government Sold Short (0.1%)^£ØØ
U.S. Treasury Bonds, 2.88%, due 5/15/43	$	(403,000	)		(345,510	)
U.S. Treasury Notes, 1.75%, due 5/15/23		(183,000	)		(170,833	)
Total U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government Sold Short (Proceeds $(512,911))					(516,343	)
Corporate Debt Securities Sold Short (0.3%)^£ØØ
Auto Parts & Equipment (0.0%)
Delphi Corp., 5.00%, due 2/15/23		(179,000	)		(187,950	)
Beverages (0.0%)
Constellation Brands, Inc., 4.25%, due 5/1/23		(50,000	)		(47,937	)
Diversified Telecommunication Services (0.0%)
CenturyLink, Inc., Ser. V, 5.63%, due 4/1/20		(59,000	)		(59,959	)

	Principal Amount			Value†
Verizon Communications, Inc., 6.55%, due 9/15/43	$	(71,000	)	$	(82,330	)
					(142,289	)
Food Products (0.0%)
HJ Heinz Finance Co., 7.13%, due 8/1/39		(123,000	)		(128,228	)^ñ
Household Products (0.1%)
Reynolds Group Issuer, Inc., 9.00%, due 4/15/19		(123,000	)		(131,610	)
Reynolds Group Issuer, Inc., 9.88%, due 8/15/19		(92,000	)		(101,775	)
					(233,385	)
Media (0.0%)
Cumulus Media Holdings, Inc., 7.75%, due 5/1/19		(70,000	)		(73,850	)
Metals & Mining (0.0%)
Cliffs Natural Resources, Inc., 6.25%, due 10/1/40		(48,000	)		(42,762	)
Oil, Gas & Consumable Fuels (0.0%)
Samson Investment Co., 10.25%, due 2/15/20		(119,000	)		(128,520	)^ñ
Pharmaceuticals (0.1%)
Valeant Pharmaceuticals International, 6.75%, due 8/15/18		(116,000	)		(127,020	)^ñ
Valeant Pharmaceuticals International, 7.50%, due 7/15/21		(116,000	)		(128,760	)^ñ
					(255,780	)
Trading Companies & Distributors (0.1%)
HD Supply, Inc., 7.50%, due 7/15/20		(233,000	)		(245,815	)^ñ
Total Corporate Debt Securities Sold Short (Proceeds $(1,466,008))					(1,486,516	)
Total Short Positions (Proceeds $(90,294,717))					(92,813,549	)

See Notes to Schedule of Investments

Notes to Schedule of Investments

† In accordance with Accounting Standards Codification ("ASC") 820 "Fair Value Measurements and Disclosures" ("ASC 820"), all investments held by Neuberger Berman Absolute Return Multi-Manager Fund (the "Fund") are carried at the value that Neuberger Berman Management LLC ("Management") believes the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment under current market conditions. Various inputs, including the volume and level of activity for the asset or liability in the market, are considered in valuing the Fund's investments, some of which are discussed below. Significant management judgment may be necessary to value investments in accordance with ASC 820.

• Level 1 – quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, amortized cost, etc.)

• Level 3 – significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing an investment are not necessarily an indication of the risk associated with investing in those securities.

The value of the Fund's investments (long and short positions) in equity securities, exchange traded funds, purchased option contracts, written option contracts, rights and warrants, for which market quotations are readily available, is generally determined by Management by obtaining valuations from an independent pricing service based on the latest sale price quoted on a principal exchange or market for that security (Level 1 inputs). Securities traded primarily on the NASDAQ Stock Market are normally valued by a Fund at the NASDAQ Official Closing Price ("NOCP") provided by NASDAQ each business day. The NOCP is the most recently reported price as of 4:00:02 p.m., Eastern time, unless that price is outside the range of the "inside" bid and asked prices (i.e., the bid and asked prices that dealers quote to each other when trading for their own accounts); in that case, NASDAQ will adjust the price to equal the inside bid or asked price, whichever is closer. Because of delays in reporting trades, the NOCP may not be based on the price of the last trade to occur before the market closes. If there is no reported sale of a security on a particular day, the independent pricing service may value the security based on reported market quotations.

The value of the Fund's investments in debt securities (long and short positions) is determined by Management primarily by obtaining valuations from independent pricing services based on readily available bid quotations, or if quotations are not available, by methods which include various considerations based on security type (generally Level 2 inputs). In addition to the consideration of yields or prices of securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions, the following is a description of other Level 2 inputs and related valuation techniques used by an independent pricing service to value certain types of debt securities of the Fund:

U.S. Treasury Securities. Inputs used to value U.S. Treasury securities generally include quotes from several inter-dealer brokers and Other Market Information.

See Notes to Financial Statements

Notes to Schedule of Investments (cont'd)

Asset-Backed Securities and Mortgage-Backed Securities. Inputs used to value asset-backed securities and mortgage-backed securities generally include models that consider a number of factors, which may include the following: prepayment speeds, cash flows, spread adjustments and Other Market Information.

Bank Loans. The value of bank loan securities is determined by Management primarily by obtaining valuations from independent pricing services based on broker quotes (generally Level 2 or Level 3 inputs depending on the number of quotes available).

The value of financial futures contracts is determined by obtaining valuations from independent pricing services at the settlement price at the market close (Level 1 inputs).

The value of equity swaps is determined by obtaining valuations from an independent pricing service using the underlying security and stated LIBOR rate or Federal Funds floating rate (Level 2 inputs).

Management has developed a process to periodically review information provided by independent pricing services for all types of securities.

Investments in investment companies are valued using the respective fund's daily calculated net asset value per share (Level 2 inputs).

If a valuation is not available from an independent pricing service, or if Management has reason to believe that the valuation received does not represent the amount the Fund might reasonably expect to receive on a current sale in an orderly transaction, the Fund seeks to obtain quotations from principal market makers (generally considered Level 3 inputs). If such quotations are not readily available, the security is valued using methods the Neuberger Berman Alternative Funds' Board of Trustees (the "Board") has approved on the belief that they reflect fair value. Numerous factors may be considered when determining the fair value of a security based on Level 2 or 3 inputs, including available analyst, media or other reports, trading in futures or ADRs and whether the issuer of the security being fair valued has other securities outstanding.

The value of the Fund's investments in foreign securities is generally determined using the same valuation methods and inputs as other Fund investments, as discussed above. Foreign security prices expressed in local currency values are translated from the local currency into U.S. dollars using the exchange rate as of 4:00 p.m., Eastern time. The Board has approved the use of Interactive Data Pricing and Reference Data, Inc. ("Interactive") to assist in determining the fair value of foreign equity securities when changes in the value of a certain index suggest that the closing prices on the foreign exchanges may no longer represent the amount that the Fund could expect to receive for those securities or on days when foreign markets are closed and U.S. markets are open. In each of these events, Interactive will provide adjusted prices for certain foreign equity securities using a statistical analysis of historical correlations of multiple factors (Level 2 inputs). In the absence of precise information about the market values of these foreign securities as of the close of the New York Stock Exchange, the Board has determined on the basis of available data that prices adjusted in this way are likely to be closer to the prices the Fund could realize on a current sale than are the prices of those securities established at the close of the foreign markets in which the securities primarily trade.

Fair value prices are necessarily estimates, and there is no assurance that such a price will be at or close to the price at which the security is next quoted or next trades.

See Notes to Financial Statements

Notes to Schedule of Investments (cont'd)

The following is a summary, categorized by Level, of inputs used to value the Fund's investments as of October 31, 2013:

Asset Valuation Inputs
	Level 1		Level 2		Level 3§		Total
Investments:
Common Stocks
Biotechnology	$	11,035,114	$	3,120	$	—	$	11,038,234
Media		23,194,867		—		750		23,195,617
Other Common Stocks^		190,860,806		—		—		190,860,806
Total Common Stocks		225,090,787		3,120		750		225,094,657
Preferred Stocks^		2,001,330		—		—		2,001,330
Exchange Traded Funds		2,491,348		—		—		2,491,348
Investment Companies		—		30,016		—		30,016
Rights^		101,084		—		—		101,084
Warrants^		182,648		—		—		182,648
U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government		—		28,960		—		28,960
Collateralized Mortgage Obligations		—		6,892,323		—		6,892,323
Commercial Mortgage-Backed Securities		—		3,761,791		496,719		4,258,510
Asset-Backed Securities		—		1,933,267		—		1,933,267
Corporate Debt Securities^		—		5,091,455		—		5,091,455
Convertible Corporate Debt^		—		81,962		—		81,962
Bank Loan Obligations
Aerospace & Defense		—		—		503,750		503,750
Auto Parts & Equipment		—		452,812		—		452,812
Building Products		—		1,671,475		—		1,671,475
Chemicals		—		243,820		87,000		330,820
Commercial Services & Supplies		—		2,328,493		500,000		2,828,493
Communications Equipment		—		1,115,579		—		1,115,579
Computers & Peripherals		—		1,325,796		—		1,325,796
Diversified Consumer Services		—		249,375		—		249,375
Diversified Financial Services		—		1,395,883		—		1,395,883
Diversified Telecommunication Services		—		911,405		—		911,405
Electronic Equipment, Instruments & Components		—		1,000,000		—		1,000,000
Energy Equipment & Services		—		484,818		151,414		636,232
Food Products		—		817,424		—		817,424
Health Care Equipment & Supplies		—		93,077		—		93,077
Health Care Providers & Services		—		1,678,254		—		1,678,254
Health Care Technology		—		97,401		435,000		532,401
Hotels, Restaurants & Leisure		—		4,817,566		—		4,817,566
Independent Power Producers & Energy Traders		—		1,006,250		—		1,006,250

See Notes to Financial Statements

Notes to Schedule of Investments (cont'd)

Insurance	$	—		$	762,979		$	—	$	762,979
Internet Software & Services		—			1,163,950			1,467,180		2,631,130
IT Services		—			500,876			—		500,876
Media		—			1,469,416			—		1,469,416
Metals & Mining		—			709,029			—		709,029
Multiline Retail		—			307,875			—		307,875
Oil, Gas & Consumable Fuels		—			1,062,186			44,100		1,106,286
Pharmaceuticals		—			1,056,000			—		1,056,000
Software		—			5,109,181			2,244,500		7,353,681
Trading Companies & Distributors		—			351,181			—		351,181
Transportation Infrastructure		—			887,733			—		887,733
Total Bank Loan Obligations		—			33,069,834			5,128,024		38,197,858
Purchased Options		1,843,483			1,814			—		1,845,297
Short-Term Investments		—			187,567,681			—		187,567,681
Total Investments		231,710,680			238,462,223			5,930,413		476,103,316
Liability Valuation Inputs
	Level 1			Level 2			Level 3§		Total
Investments:
Common Stocks Sold Short^	$	(50,352,534	)	$	—		$	—	$	(50,352,534	)
Exchange Traded Funds Sold Short		(40,458,156	)		—			—		(40,458,156	)
U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government Sold Short		—			(516,343	)		—		(516,343	)
Corporate Debt Securities Sold Short^		—			(1,486,516	)		—		(1,486,516	)
Total Investments		(90,810,690	)		(2,002,859	)		—		(92,813,549	)

^ The Schedule of Investments provides information on the industry categorization for the portfolio.

See Notes to Financial Statements

Notes to Schedule of Investments (cont'd)

§ The following is a reconciliation between the beginning and ending balances of investments in which significant unobservable inputs (Level 3) were used in determining value:

	Beginning balance as of 11/01/12		Accrued discounts/ (premiums)		Realized gain/loss and change in unrealized appreciation/ (depreciation)				Purchases		Sales			Transfers in to Level 3		Transfers out of Level 3		Balance as of 10/31/13		Net change in unrealized appreciation/ (depreciation) from investments still held as of 10/31/13
Investments in Securities:
Common Stocks
Media	$	—	$	—	$	750			$	—	$	—		$	—	$	—	$	750	$	750
Commercial Mortgage-Backed Securities		—		37		(78	)			496,760		—			—		—		496,719		(78	)
Bank Loan Obligations
Aerospace & Defense		—		—		6,250				497,500		—			—		—		503,750		6,250
Chemicals		—		43		1,697				85,260		—			—		—		87,000		1,697
Commercial Services & Supplies		—		—		(3,750	)			503,750		—			—		—		500,000		(3,750	)
Energy Equipment & Services		—		65		4,208				147,141		—			—		—		151,414		4,208
Health Care Technology		—		1,161		(62,201	)			—		—			496,040		—		435,000		(62,201	)
Insurance		600,000		7		2,243		��		—		(602,250	)		—		—		—		—
Internet Software & Services		—		176		14,644				1,452,360		—			—		—		1,467,180		14,644
Machinery		101,000		—		2,000				—		(103,000	)		—		—		—		—
Oil, Gas & Consumable Fuels		—		43		857				43,200		—			—		—		44,100		857
Software		—		—		21,735				2,222,765		—			—		—		2,244,500		21,735
Total	$	701,000	$	1,532	$	(11,645	)		$	5,448,736	$	(705,250	)	$	496,040	$	—	$	5,930,413	$	(15,888	)

As of October 31, 2013, one security in the Fund transferred from Level 2 to Level 3 as a result of a decrease in the number of observable quotations that were readily available to the independent pricing service. In addition, one security transferred from Level 2 to Level 1 due to active market activity on recognized exchanges, as of October 31, 2013.

The following is a summary, categorized by Level, of inputs used to value the Fund's derivatives as of October 31, 2013:

Asset Valuation Inputs
	Level 1		Level 2		Level 3		Total
Forward contracts (unrealized appreciation)	$	—	$	39,118	$	—	$	39,118
Equity swaps		—		440,123		—		440,123
Total	$	—	$	479,241	$	—	$	479,241

See Notes to Financial Statements

Notes to Schedule of Investments (cont'd)

Liability Valuation Inputs
	Level 1			Level 2			Level 3		Total
Forward contracts (unrealized depreciation)	$	—		$	(194,143	)	$	—	$	(194,143	)
Total return swaps		—			(409,350	)		—		(409,350	)
Options written		(925,318	)		—			—		(925,318	)
Total	$	(925,318	)	$	(603,493	)	$	—	$	(1,528,811	)

## At October 31, 2013, selected fund information on a U.S. federal income tax basis was as follows:

				Cost				Gross Unrealized Appreciation				Gross Unrealized Depreciation				Net Unrealized Appreciation (Depreciation)
Absolute Return Multi-Manager				$	470,423,287			$	11,659,707			$	(5,979,678	)		$	5,680,029

* Security did not produce income during the last twelve months.

^^ All or a portion of this security has not settled as of October 31, 2013 and thus does not have an interest rate in effect. Interest rates do not take effect until settlement.

± At October 31, 2013, the Fund had outstanding call and put options written as follows:

Name of Issuer	Contracts		Exercise Price		Expiration Date	Market Value of Options
Cooper Tire & Rubber Co., Call		109	$	25	November 2013	$	(27,250	)
Cooper Tire & Rubber Co., Call		11		22.5	January 2014		(4,840	)
Cooper Tire & Rubber Co., Call		18		26	November 2013		(3,402	)
General Motors Co., Call		13		37	November 2013		(1,014	)
Iron Mountain, Inc., Call		51		25	November 2013		(9,690	)
iShares Russell 2000 ETF, Put		284		80	June 2014		(35,784	)
iShares Russell 2000 Index Fund, Put		59		75	November 2013		—
Kulicke & Soffa Industries, Inc., Call		22		13	November 2013		(990	)
Kulicke & Soffa Industries, Inc., Call		22		12	November 2013		(2,420	)
Lamar Advertising Co., Call		135		46	November 2013		(21,600	)
MetLife, Inc., Call		7		47	November 2013		(791	)
Navistar International Corp., Call		4		35	November 2013		(460	)
Safeway, Inc., Call		24		36	November 2013		(1,440	)
SPDR S&P 500 ETF Trust, Put		1,200		157	December 2013		(52,800	)
SPDR S&P 500 ETF Trust, Put		1,300		161	December 2013		(89,700	)
SPDR S&P 500 ETF Trust, Put		2,000		159	December 2013		(102,000	)
SPDR S&P 500 ETF Trust, Put		2,000		163	March 2014		(524,000	)
The Jones Group, Inc., Call		16		16	November 2013		(720	)
The Men's Wearhouse, Inc., Call		27		45	November 2013		(3,510	)
The Men's Wearhouse, Inc., Call		27		46	November 2013		(2,700	)
The Men's Wearhouse, Inc., Call		33		44	November 2013		(5,940	)
Theravance, Inc., Call		235		47	January 2014		(7,050	)
Theravance, Inc., Put		235		32	January 2014		(15,275	)
United Rentals, Inc., Call		22		62.5	November 2013		(6,974	)
ViroPharma, Inc., Call		33		40	November 2013		(4,950	)
Weight Watchers International, Inc., Call		9		42.5	November 2013		(18	)
Total						$	(925,318	)

See Notes to Financial Statements

Notes to Schedule of Investments (cont'd)

≠ Security had an event of default.

¢ All or a portion of this security was purchased on a delayed delivery basis.

£ At October 31, 2013, the Fund had pledged securities in the amount of $24,111,158 to cover collateral requirements for borrowing in connection with securities sold short and option contracts written.

a Step Bond: Coupon rate is a fixed rate for an initial period then resets at a specified date and rate.

c Payment-in-kind security for which part of the income earned may be paid as additional principal.

f Value of the security was determined using methods the Board has approved on the belief they reflect fair value.

ñ Securities were purchased under Rule 144A of the Securities Act of 1933 or are private placements and, unless registered under the Act or exempted from registration, may only be sold to qualified institutional investors. These securities have been deemed by the investment manager to be liquid. At October 31, 2013, these securities amounted to approximately $8,099,384 or 1.72% of net assets for the Fund.

Ñ These securities have been deemed by the investment manager to be illiquid. At October 31, 2013, these securities amounted to approximately $4,932,944 or 1.05% of net assets for the Fund.

Ø All or a portion of this security or cash is segregated in connection with obligations for securities sold short and/or delayed delivery purchase commitments and/or call and put options written and/or forward foreign currency contracts and/or swaps.

ØØ At October 31, 2013, the Fund had deposited $89,465,765 in one or more accounts to satisfy collateral requirements for borrowing in connection with securities sold short.

µ Floating rate securities are securities whose yields vary with a designated market index or market rate. These securities are shown at their current rates as of October 31, 2013 and their final maturities.

†† As of October 31, 2013, the value of unfunded loan commitments was approximately $25,435 pursuant to the following loan agreement:

Borrower				Principal Amount				Value
Alinta Energy, due 12/31/20				$	25,789			$	25,435

††† See Note A-12 in the Notes to Financial Statements for the Fund's open positions in derivatives at October 31, 2013.

See Notes to Financial Statements

Statement of Assets and Liabilities

Neuberger Berman Alternative Funds
	ABSOLUTE RETURN MULTI-MANAGER FUND
	October 31, 2013
Assets
Investments in securities, at value* (Note A)—see Schedule of Investments:
Unaffiliated issuers	$	476,103,316
Deposits with broker for short sales (Note A-10)		89,465,765
Deposits with broker for swaps (Note A-12)		14,300,000
Dividends and interest receivable		290,589
Foreign tax reclaims		3,361
Receivable for securities sold		24,442,517
Receivable for Fund shares sold		14,825,407
Equity Swaps, at value (Note A-12)		440,123
Receivable for open forward foreign currency contracts (Note A-12)		39,118
Prepaid expenses and other assets		46,277
Total Assets		619,956,473
Liabilities
Investments sold short, at value (Note A) (proceeds $90,294,717)		92,813,549
Written Options, at value (Note A) (proceeds $2,236,061)		925,318
Due to Custodian		5,051,026
Foreign currency—due to custodian*		4,214,645
Dividends and interest payable for short sales		53,080
Payable to investment manager—net (Note B)		565,547
Payable to administrator—net (Note B)		19,140
Payable for securities purchased		36,754,438
Payable for Fund shares redeemed		8,483,468
Total return Swaps, at value (Note A-12)		409,350
Payable for open forward foreign currency contracts (Note A-12)		194,143
Accrued expenses and other payables		176,441
Total Liabilities		149,660,145
Net Assets	$	470,296,328
Net Assets consist of:
Paid-in capital	$	462,630,337
Undistributed net investment income (loss)		25,564
Accumulated net realized gains (losses) on investments		2,391,217
Net unrealized appreciation (depreciation) in value of investments		5,249,210
Net Assets	$	470,296,328
Net Assets
Institutional Class	$	324,323,789
Class A		124,715,152
Class C		21,257,387

See Notes to Financial Statements

Statement of Assets and Liabilities (cont'd)


	ABSOLUTE RETURN MULTI-MANAGER FUND
	October 31, 2013
Shares Outstanding ($.001 par value; unlimited shares authorized)
Institutional Class		29,860,600
Class A		11,522,771
Class C		1,985,698
Net Asset Value, offering and redemption price per share
Institutional Class	$	10.86
Net Asset Value and redemption price per share
Class A	$	10.82
Offering Price per share
Class A‡	$	11.48
Net Asset Value and offering price per share
Class C^	$	10.71
*Cost of Investments:
Unaffiliated issuers	$	469,521,653
Total cost of foreign currency	$	(4,218,102	)

‡ On single retail sales of less than $50,000. On sales of $50,000 or more or in certain other circumstances described in the Fund's prospectus, offering price is reduced.

^ Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.

See Notes to Financial Statements

Statement of Operations

Neuberger Berman Alternative Funds
	ABSOLUTE RETURN MULTI-MANAGER FUND
	For the Year Ended October 31, 2013
Investment Income:
Income (Note A):
Dividend income—unaffiliated issuers	$	877,084
Interest income—unaffiliated issuers		825,914
Foreign taxes withheld		(15,405	)
Total income	$	1,687,593
Expenses:
Investment management fees (Note B)		1,917,384
Administration fees (Note B)		66,416
Administration fees (Note B):
Institutional Class		72,229
Class A		53,079
Class C		7,805
Distribution fees (Note B):
Class A		66,348
Class C		39,025
Shareholder servicing agent fees:
Institutional Class		11,749
Class A		12,648
Class C		1,959
Audit fees		57,900
Custodian fees (Note A)		205,364
Legal fees		241,761
Registration and filing fees		81,451
Shareholder reports		35,000
Trustees' fees and expenses		47,999
Short sales expense (Note A-10)		417,466
Miscellaneous		11,111
Total expenses		3,346,694
Expenses reimbursed by Management (Note B)		(669,435	)
Expenses reduced by custodian fee expense offset arrangement (Note A)		(6,322	)
Total net expenses		2,670,937
Net investment income (loss)	$	(983,344	)
Realized and Unrealized Gain (Loss) on Investments (Note A):
Net realized gain (loss) on:
Sales of investment securities of unaffiliated issuers		5,831,916
Sales of investment securities of unaffiliated issuers sold short		(2,760,593	)
Forward foreign currency contracts		27,633
Foreign currency		(96,972	)
Financial futures contracts		(58,511	)
Options written		275,033
Swap contracts		505,524
Change in net unrealized appreciation (depreciation) in value of:
Unaffiliated investment securities		6,491,013
Unaffiliated investment securities sold short		(2,564,051	)
Forward foreign currency contracts		(155,025	)
Foreign currency		(1,537	)
Financial futures contracts		(2,795	)
Options written		1,301,528
Swap contracts		30,773
Net gain (loss) on investments		8,823,936
Net increase (decrease) in net assets resulting from operations	$	7,840,592

See Notes to Financial Statements

Statements of Changes in Net Assets

Neuberger Berman Alternative Funds
	ABSOLUTE RETURN MULTI-MANAGER FUND
	Year Ended October 31, 2013			Period from May 15, 2012 (Commencement of Operations) to October 31, 2012
Increase (Decrease) in Net Assets:
From Operations (Note A):
Net investment income (loss)	$	(983,344	)	$	(193,650	)
Net realized gain (loss) on investments		3,724,030			(22,204	)
Change in net unrealized appreciation (depreciation) of investments		5,099,906			149,304
Net increase (decrease) in net assets resulting from operations		7,840,592			(66,550	)
Distributions to Shareholders From (Note A):
Net investment income:
Institutional Class		(58,599	)		—
Net realized gain on investments:
Institutional Class		(119,803	)		—
Class A		(12,381	)		—
Class C		(2,073	)		—
Total distributions to shareholders		(192,856	)		—
From Fund Share Transactions (Note D):
Proceeds from shares sold:
Institutional Class		308,138,341			33,591,736
Class A		124,995,179			1,760,497
Class C		21,030,909			230,214
Proceeds from reinvestment of dividends and distributions:
Institutional Class		172,922			—
Class A		9,064			—
Class C		1,988			—
Payments for shares redeemed:
Institutional Class		(22,848,165	)		(305,020	)
Class A		(3,847,011	)		(804	)
Class C		(214,708	)		—
Net increase (decrease) from Fund share transactions		427,438,519			35,276,623
Net Increase (Decrease) in Net Assets		435,086,255			35,210,073
Net Assets:
Beginning of period		35,210,073			—
End of year	$	470,296,328		$	35,210,073
Undistributed net investment income (loss) at end of period		25,564			(136,050	)

See Notes to Financial Statements

Notes to Financial Statements Absolute Return
Multi-Manager Fund

Note A—Summary of Significant Accounting Policies:

The assets of the Fund belong only to the Fund, and the liabilities of the Fund are borne solely by the Fund and no other.

2 Portfolio valuation: Investment securities are valued as indicated in the notes following the Fund's Schedule of Investments.

3 Foreign currency translation: The accounting records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars using the exchange rate as of 4:00 p.m., Eastern time, to determine the value of investments, other assets and liabilities. Purchase and sale prices of securities, and income and expenses, are translated into U.S. dollars at the prevailing rate of exchange on the respective dates of such transactions. Net unrealized foreign currency gain (loss), if any, arises from changes in the value of assets and liabilities, other than investments in securities, as a result of changes in exchange rates and is stated separately in the Statement of Operations.

4 Securities transactions and investment income: Securities transactions are recorded on trade date for financial reporting purposes. Dividend income is recorded on the ex-dividend date or, for certain foreign dividends, as soon as the Fund becomes aware of the dividends. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, including accretion of discount (adjusted for original issue discount, where applicable) and amortization of premium, where applicable, is recorded on the accrual basis. Realized gains and losses from securities transactions and foreign currency transactions, if any, are recorded on the basis of identified cost and stated separately in the Statement of Operations.

5 Income tax information: The Fund is treated as a separate entity for U.S. federal income tax purposes. It is the policy of the Fund to continue to qualify for treatment as a regulated investment company by complying with the requirements of the U.S. Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its net investment income and net realized capital gains to its shareholders. To the extent the Fund distributes substantially all of its net investment income and net realized capital gains to shareholders, no federal income or excise tax provision is required.

The Fund has adopted the provisions of ASC 740 "Income Taxes" ("ASC 740"). ASC 740 sets forth a minimum threshold for financial statement recognition of a tax position taken, or expected to be taken, in a tax return. The Fund recognizes interest and penalties, if any, related to unrecognized tax positions as an income tax expense in the Statement of Operations. As of October 31, 2013, the Fund did not have any unrecognized tax positions.

As determined on October 31, 2013, permanent differences resulting primarily from different book and tax accounting were reclassified at year end. Such differences may be attributed to one or more of the following: netting of net ordinary losses with short-term capital gains, income recognized on swap transactions, non-deductible stock issuance costs, the tax treatment of foreign currency gains and losses, payments in lieu of dividends on short sales and gains from passive foreign investment companies. These reclassifications had no effect on net income, net asset value ("NAV") or NAV per share of the Fund. For the year ended October 31, 2013, the Fund recorded the following permanent reclassifications:

Paid-In Capital				Undistributed Net Investment Income (Loss)				Accumulated Net Realized Gains (Losses) on Investments
$	(84,626	)		$	1,203,557			$	(1,118,931	)

For tax purposes, distributions of short-term gains are taxable to shareholders as ordinary income.

The tax character of distributions paid during the years ended October 31, 2013 and October 31, 2012 was as follows:

										Distributions Paid From:
Ordinary Income					Tax-Exempt Income					Long-Term Capital Gain					Return of Capital					Total
2013		2012			2013		2012			2013		2012			2013		2012			2013		2012
$	190,445	$	—	⁽¹⁾	$	—	$	—	⁽¹⁾	$	2,411	$	—	⁽¹⁾	$	—	$	—	⁽¹⁾	$	192,856	$	—	⁽¹⁾

(1) Period from May 15, 2012 (Commencement of Operations) to October 31, 2012.

As of October 31, 2013, the components of distributable earnings (accumulated losses) on a U.S. federal income tax basis were as follows:

Undistributed Ordinary Income				Undistributed Long-Term Gain				Unrealized Appreciation (Depreciation)				Loss Carryforwards and Deferrals				Other Temporary Differences				Total
$	4,424,384			$	—			$	3,673,124			$	—			$	(431,517	)		$	7,665,991

The difference between book basis and tax basis distributable earnings is attributable primarily to wash sale loss deferrals, amortization of organizational costs, mark to market on certain swap contract transactions, unsettled wash sale loss deferrals, straddle loss deferrals, mark-to-market adjustments on passive foreign investment companies, constructive sales gains and delayed settlement compensation on bank loans.

To the extent the Fund's net realized capital gains, if any, can be offset by capital loss carryforwards, if any, it is the policy of the Fund not to distribute such gains.

6 Foreign taxes: Foreign taxes withheld represent amounts withheld, if any, by foreign tax authorities, net of refunds recoverable.

7 Distributions to shareholders: The Fund may earn income, net of expenses, daily on its investments. Distributions from net investment income and net realized capital gains, if any, generally are distributed once a year (usually in December) and are recorded on the ex-date.

8 Expense allocation: Certain expenses are applicable to multiple funds. Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a particular series of the Trust (e.g., a Fund) are allocated among the series of the Trust, on the basis of relative net assets, except where a more appropriate allocation of expenses to each of the series can otherwise be made fairly. Expenses borne by the complex of related investment companies, which includes open-end and closed-end investment companies for which Management serves as investment manager, that are not directly attributable to a particular investment company in the complex (e.g., the Trust) or series thereof are allocated among the investment companies in the complex or series thereof, on the basis of relative net assets, except where a more appropriate allocation of expenses to each of the investment companies in the complex or series thereof can otherwise be made fairly. The Fund's expenses (other than those specific to each class) are allocated proportionally each day among the classes based upon the relative net assets of each class.

9 Investments in foreign securities: Investing in foreign securities may involve certain sovereign and other risks, in addition to the credit and market risks normally associated with domestic securities. These additional risks include the possibility of adverse political and economic developments (including political instability, nationalization, expropriation, or confiscatory taxation) and the potentially adverse effects of unavailability of public information regarding issuers, less governmental supervision and regulation of financial markets, reduced liquidity of certain financial markets, and the lack of uniform accounting, auditing, and financial reporting standards or the application of standards that are different or less stringent than those applied in the United States. Foreign securities also may experience greater price volatility, higher rates of inflation, and delays in settlement.

10 Securities sold short: The Fund may engage in short sales, which are sales of securities which have been borrowed from a third party on the expectation that the market price will decline. If the price of the securities decreases, the Fund will make a profit by purchasing the securities in the open market at a price lower than the one at which it sold the securities. If the price of the securities increases, the Fund may have to cover its short positions at a price higher than the short sale price, resulting in a loss. Gains are limited to the price at which the Fund sold the security short, while losses are potentially unlimited in size. The Fund pledges securities and/or other assets, to the lender as collateral. Proceeds received from short sales may be maintained by the lender as collateral. Proceeds maintained by the lender are included in the "Deposit with brokers for short sales" on the Statement of Assets and Liabilities. The Fund is required to segregate an amount of cash, cash equivalents or other appropriate liquid marketable securities with the custodian in at least an amount equal to the current market value of the securities sold short (less any additional collateral held by the lender). The Fund is contractually responsible to the lender for any dividends payable and interest accrued on securities while those securities are in a short position. These dividends and interest are recorded as an expense of the Fund and are excluded from the contractual expense limitation. As of October 31, 2013, the Fund had pledged cash in the amount of $89,465,765 to JP Morgan Chase Bank, N.A. ("JPM"), as collateral for short sales. At October 31, 2013, the Fund had pledged securities in the amount of $24,083,373 to cover collateral requirements for borrowing in connection with securities sold short.

11 Investment company securities and exchange-traded funds: The Fund may invest in shares of other registered investment companies, including exchange-traded funds ("ETFs"), within the limitations prescribed by the 1940 Act. Some ETFs seek to track the performance of a particular market index. These indices include both broad-based market indices and more narrowly-based indices, including those relating to particular sectors, markets, regions or industries. However, some ETFs have actively-managed investment objectives. ETF shares are traded like traditional equity securities on a national securities exchange or NASDAQ. The Fund will indirectly bear its proportionate share of any management fees and other expenses paid by such other investment companies, which will decrease returns.

12 Derivative instruments: During the year ended October 31, 2013, the Fund's use of derivatives, as described below, was limited to equity swaps, total return swaps, financial futures contracts, forward foreign currency contracts, written option transactions and purchased option transactions. The Fund has adopted the provisions of ASC 815 "Derivatives and Hedging" ("ASC 815"). The disclosure requirements of ASC 815 distinguish between derivatives that qualify for hedge accounting and those that do not. Because investment companies value their derivatives at

fair value and recognize changes in fair value through the Statement of Operations, they do not qualify for hedge accounting. Accordingly, even though the Fund's investments in derivatives may represent economic hedges, they are considered non-hedge transactions for purposes of this disclosure.

Equity swap contracts: During the year ended October 31, 2013, the Fund used equity swaps to provide investment exposure to certain foreign investments. Equity swaps are two-party contracts that generally obligate one party to pay the positive return and the other party to pay the negative return on a specified reference security, basket of securities, security index or index component during the period of the swap. Equity swap contracts are marked to market daily based on the value of the underlying reference entity and the change, if any, is recorded as an unrealized gain or loss. Equity swaps normally do not involve the delivery of securities or other underlying assets. If the other party to an equity swap defaults, a Fund's risk of loss consists of the net amount of payments that such Fund is contractually entitled to receive, if any. Equity swaps are derivatives and their value can be very volatile. To the extent that the Adviser or Sub-Adviser, as applicable, do not accurately analyze and predict future market trends, the values of assets or economic factors, a Fund may suffer a loss, which may exceed the related amounts shown in the Statement of Assets and Liabilities. Periodic payments received or paid by the Fund is recorded as realized gains or losses.

At October 31, 2013, the outstanding equity swaps* for the Fund were as follows:

Counterparty				Description				Value^†
JPMorgan Chase Bank, N.A.				The Fund receives or pays the total return on a portfolio of long and short positions and pays or receives a specified LIBOR or Federal Funds floating rate, which is denominated in various foreign currencies based on the local currencies of the positions within the portfolio.				$	440,123

* The following table represents the individual long and short positions and related values within the equity swaps as of October 31, 2013.

Reference Entity	Shares		Notional Value^(a)		Net Unrealized Appreciation (Depreciation)
Long Positions
Australia
GrainCorp Ltd.		54,143	$	632,372	$	(894	)
Belgium
Henex		1,867		158,477		513
Brazil
MMX Mineracao e Metalicos SA		901,417		1,218,568		(224,683	)
Canada
Extendicare Inc.		92,694		586,990		7,766
Petrominerales Ltd.		54,459		617,746		8,508
Shoppers Drug Mart Corp.		51,789		2,969,987		55,943
						72,217
Denmark
Bavarian Nordic A/S		950		11,483		104
Coloplast A/S		254		14,592		1,970
Genmab A/S		273		11,219		634
H. Lundbeck A/S		1,079		22,595		603
						3,311

Reference Entity	Shares		Notional Value^(a)		Net Unrealized Appreciation (Depreciation)
France
BNP Paribas SA		1,400	$	97,786	$	5,887
Caisse Regionale Credit Agricole Mutuel d'Ille et Vilaine		298		19,557		418
Caisse Regionale de Credit Agricole Mutuel Alpes Provence		116		9,113		495
Credit Agricole Atlantique Vendee CCI		343		37,330		(115	)
Credit Agricole de la Touraine et du Poitou		219		16,019		38
Credit Agricole de Normandie-Seine		450		49,852		1,105
Credit Agricole Loire Haute-Loire		177		11,038		810
Credit Agricole Nord de France CCI		1,460		30,384		1,076
Orange		13,278		184,383		(2,118	)
Sanofi		244		24,839		1,181
Vivendi		5,112		125,974		3,784
						12,561
Germany
Celesio AG		14,329		397,069		49,136
GSW Immobilien AG		3,532		158,552		5,385
KHD Humboldt Wedag International AG		2,455		21,196		53
MAN SE		5,092		604,135		9,453
						64,027
Ireland
Shire PLC		8,389		331,421		38,614
Isle of Man
GVC Holdings PLC		38,793		199,861		18,854
Italy
Telecom Italia SpA		144,737		99,139		13,956
Netherlands
Unit4 NV		6,717		309,055		7,591
Ziggo NV		11,146		477,399		895
						8,486
South Africa
Adcock Ingram Holdings Ltd.		30,768		211,018		9,963
Spain
Almirall SA		2,148		31,520		590
Banco Santander SA		9,104		76,340		4,488
Distribuidora Internacional de Alimentacion SA		2,567		23,479		(12	)
						5,066
Sweden
Elekta AB		1,090		17,438		(1,357	)
Meda AB		4,214		45,886		1,456
Medivir AB		1,074		13,813		275
Swedish Orphan Biovitrum AB		2,434		20,309		2,979
						3,353

Reference Entity	Shares			Notional Value^(a)			Net Unrealized Appreciation (Depreciation)
United Kingdom
Abcam PLC		1,658		$	12,937		$	475
Aberdeen Asset Management PLC		137,957			874,740			104,956
Amerisur Resources PLC		379,019			276,797			(9,400	)
Associated British Foods PLC		41,681			1,268,322			246,743
Fiberweb PLC		34,938			52,621			4,982
Galliford Try PLC		51,750			903,911			46,994
GlaxoSmithKline PLC		1,043			26,899			586
Inmarsat PLC		12,693			146,815			(179	)
Invensys PLC		72,994			583,258			5,446
Ladbrokes PLC		252,870			713,846			60,972
Rexam PLC		107,920			869,490			29,447
SABMiller PLC		8,726			457,604			(2,328	)
Tate & Lyle PLC		112,229			1,412,971			11,317
Taylor Wimpey PLC		513,450			880,088			27,151
Vodafone Group PLC		365,052			1,260,021			54,032
								581,194
United States
Brookfield Office Properties, Inc.		65,538			1,242,658			(16,442	)
PAA Natural Gas Storage, L.P.		80,646			1,844,758			(7,643	)
Pioneer Southwest Energy Partners, L.P.		72,249			3,179,657			237,721
								213,636
Total Long Positions of Portfolio Swap								820,174
Short Positions
Belgium
Anheuser-Busch InBev NV		(4,475	)		(462,019	)		(3,397	)
Bermuda
Catlin Group Ltd.		(21,590	)		(171,917	)		(5,324	)
Hiscox Ltd.		(16,350	)		(172,434	)		(982	)
								(6,306	)
Canada
Loblaw Cos. Ltd.		(19,138	)		(842,124	)		(33,233	)
France
Bureau Veritas SA		(18,160	)		(551,657	)		3,291
LVMH Moet Hennessy Louis Vuitton SA		(3,177	)		(600,215	)		(11,449	)
Lyxor ETF CAC 40		(7,704	)		(211,212	)		(5,155	)
Lyxor ETF STOXX Europe 600 Banks		(4,339	)		(247,791	)		(4,680	)
Publicis Groupe		(10,102	)		(791,345	)		(51,231	)
Schneider Electric SA		(1,901	)		(158,662	)		(1,494	)
								(70,718	)

Reference Entity	Shares			Notional Value^(a)			Net Unrealized Appreciation (Depreciation)
Germany
Deutsche Wohnen AG		(6,712	)	$	(125,329	)	$	(980	)
Ireland
iShares FTSE 100 UCITS ETF Inc.		(25,899	)		(270,314	)		(8,578	)
Italy
Assicurazioni Generali SpA		(2,428	)		(51,546	)		(5,222	)
Telecom Italia SpA		(116,724	)		(100,042	)		(13,669	)
								(18,891	)
Portugal
Jeronimo Martins, SGPS, SA		(14,470	)		(279,166	)		11,775
United Kingdom
Amlin PLC		(26,150	)		(170,589	)		(8,070	)
BTG PLC		(28,700	)		(170,882	)		(22,208	)
Bunzl PLC		(8,060	)		(169,820	)		(8,135	)
Capita PLC		(11,050	)		(169,335	)		(5,360	)
Drax Group PLC		(16,780	)		(171,253	)		136
G4S PLC		(44,330	)		(170,282	)		(15,589	)
Imperial Tobacco Group PLC		(23,050	)		(860,466	)		(295	)
Provident Financial PLC		(6,480	)		(169,602	)		5,440
Schroders PLC		(20,671	)		(868,463	)		13,682
Serco Group PLC		(20,760	)		(172,611	)		(12,796	)
								(53,195	)
United States
Pioneer Natural Resources Co.		(16,801	)		(3,156,956	)		(283,553	)
Plains All American Pipeline, L.P.		(35,079	)		(1,811,245	)		14,499
								(269,054	)
Total Short Positions of Portfolio Swap								(452,577	)
Total Long and Short Positions of Portfolio Swap								367,597
Financing Costs and Other Receivables								72,526
Swap, at Value							$	440,123

(a) Notional value represents the market value (including any fees or commissions) of the long and short positions when they are established.

Total return swap contracts: During the year ended October 31, 2013, the Fund used total return swaps to hedge certain indices and provide investment exposure to certain foreign investments. Total return swaps involve commitments to pay fixed or floating rate interest in exchange for a market-linked return based on a notional amount. To the extent the total return of the reference security or index underlying the total return swap exceeds or falls short of the offsetting interest rate obligation, a Fund will receive a payment or make a payment to the counterparty, respectively. Certain risks may arise when entering into swap transactions, including counterparty default, liquidity or unfavorable changes in the value of the underlying reference security or index. The value of the swap is adjusted daily and the change in value, if any, is recorded as unrealized appreciation or depreciation in the Statement of Assets and Liabilities. Payments received or made at the end of each measurement period are recorded as realized gain or loss in the Statement of Operations.

At October 31, 2013, the outstanding total return swap contracts were as follows:

				Rate Type
Swap Counterparty	Notional Amount⁽¹⁾		Termination Date	Variable-rate Payments Made/ (Received) by the Fund			Reference Entity	Accrued Net Interest Receivable (Payable)			Unrealized Appreciation (Depreciation)			Total Fair Value
J.P. Morgan	$	1,199,127	Various (June 30, 2014 to August 21, 2014)	Various (0.174 to 0.176)%⁽²⁾			Banco do Brasil S.A.	$	(163	)	$	(256,295	)	$	(256,458	)
J.P. Morgan		2,087,113	November 6, 2014		0.129	⁽³⁾	The EURO STOXX 50 Index		—			(27,927	)		(27,927	)
J.P. Morgan		2,052,756	July 31, 2014		0.127	⁽⁴⁾	The STOXX 600 Automobiles & Parts (Price) Index		(217	)		(124,748	)		(124,965	)
Totals								$	(380	)	$	(408,970	)	$	(409,350	)

(1) The notional amount at period end is indicative of the volume throughout the period.

(2) 1 month LIBOR minus 0.50%-0.80% at October 15, 2013.

(3) 1 month EURIBOR minus 0.65% at October 15, 2013.

(4) 1 month EURIBOR minus 0.45% at October 15, 2013.

Financial futures contracts: During the year ended October 31, 2013, the Fund entered into financial futures contracts in an effort to enhance returns and to manage or adjust the risk profile and the investment exposure of the Fund to certain asset classes, countries and regions. The Fund also utilized financial futures contracts to provide investment exposure to certain indices other than the benchmarks.

At the time the Fund enters into a financial futures contract, it is required to deposit with the futures commission merchant a specified amount of cash or liquid securities, known as "initial margin," which is a percentage of the value of the financial futures contract being traded that is set by the exchange upon which the futures contract is traded. Each day, the futures contract is valued at the official settlement price of the board of trade or U.S. commodity exchange on which such futures contract is traded. Subsequent payments, known as "variation margin," to and from the broker are made on a daily basis as the market price of the financial futures contract fluctuates. Daily variation margin adjustments, arising from this "mark to market," are recorded by the Fund as unrealized gains or losses.

Although some financial futures contracts by their terms call for actual delivery or acquisition of the underlying securities or currency, in most cases the contracts are closed out prior to delivery by offsetting purchases or sales of matching financial futures contracts. When the contracts are closed, the Fund recognizes a gain or loss. Risks of entering into futures contracts include the possibility there may be an illiquid market, possibly at a time of rapidly declining prices, and/or a change in the value of the contract may not correlate with changes in the value of the underlying securities. Futures executed on regulated futures exchanges have minimal counterparty risk to a fund because the exchange's clearinghouse assumes the position of the counterparty in each transaction. Thus, the Fund is exposed to risk only in connection with the clearinghouse and not in connection with the original counterparty to the transaction.

For U.S. federal income tax purposes, the futures transactions undertaken by the Fund may cause the Fund to recognize gains or losses from marking contracts to market even though its positions have not been sold or terminated, may affect the character of the gains or losses recognized as long-term or short-term, and may affect the timing of some capital gains and losses realized by the Fund. Also, the Fund's losses on transactions involving

futures contracts may be deferred rather than being taken into account currently in calculating the Fund's taxable income. At October 31, 2013 there were no open positions in financial futures contracts.

During the year ended October 31, 2013, the average notional value of financial futures contracts was $239,691 for short positions.

Forward foreign currency contracts: During the year ended October 31, 2013, the Fund entered into forward foreign currency contracts ("forward contracts") to hedge foreign currency.

A forward contract is an agreement between two parties to buy or sell a specific currency for another at a set price on a future date, which is individually negotiated and privately traded by currency traders and their customers in the interbank market. The market value of a forward contract fluctuates with changes in forward currency exchange rates. Forward contracts are marked to market daily, and the change in value is recorded by the Fund as an unrealized gain or loss. At the consummation of a forward contract to purchase or sell currency, a Fund may either exchange the currencies specified at the maturity of a forward contract or enter into a closing transaction involving the purchase or sale of an offsetting forward contract. Closing transactions with respect to forward contracts are usually performed with the counterparty to the original forward contract. The gain or loss arising from the difference between the US dollar cost of the original contract and the value of the foreign currency in US dollars upon closing a contract is included in "Net realized gain (loss) from forward foreign currency contracts" in the Statement of Operations. These contracts may involve market risk in excess of the unrealized gain or loss reflected in a Fund's Statement of Assets and Liabilities. In addition, a Fund could be exposed to risk if the counterparties are unable to meet the terms of the contracts or if the value of the currency changes unfavorably to the US dollar.

At October 31, 2013, open forward contracts for the Fund were as follows:

Buy	Counterparty	Contracts to Receive		In Exchange For		Settlement Date	Value		Net Unrealized Appreciation (Depreciation)
Australian Dollar	J.P. Morgan		148,423	$	133,195	11/20/13	$	140,130	$	6,935
Brazilian Real	J.P. Morgan		649,545		289,598	11/20/13		288,815		(783	)
Canadian Dollar	J.P. Morgan		715,394		694,413	11/20/13		685,844		(8,569	)
Danish Krone	J.P. Morgan		48,159		8,889	11/20/13		8,768		(121	)
Euro	J.P. Morgan		2,191,809		2,977,449	11/20/13		2,976,046		(1,403	)
Hong Kong Dollar	J.P. Morgan		1,783,884		230,077	11/20/13		230,100		23
Japanese Yen	J.P. Morgan		44,419,424		453,512	11/20/13		451,773		(1,739	)
New Zealand Dollar	J.P. Morgan		6,278		5,179	11/20/13		5,180		1
Norwegian Krone	J.P. Morgan		8,585,192		1,433,392	11/20/13		1,441,293		7,901
Philippine Peso	J.P. Morgan		27,363,394		633,091	11/20/13		633,513		422
Pound Sterling	J.P. Morgan		243,996		388,080	11/20/13		391,176		3,096
South African Rand	J.P. Morgan		4,164,451		410,388	11/20/13		413,877		3,489
Swedish Krona	J.P. Morgan		14,216,794		2,222,191	11/20/13		2,193,055		(29,136	)
Swiss Franc	J.P. Morgan		811,964		890,986	11/20/13		894,990		4,004
Thai Baht	J.P. Morgan		4,136,130		130,782	11/20/13		132,749		1,967
Total									$	(13,913	)

Sell	Counterparty	Contracts to Deliver		In Exchange For		Settlement Date	Value			Net Unrealized Appreciation (Depreciation)
Australian Dollar	J.P. Morgan		148,423	$	133,992	11/20/13	$	(140,130	)	$	(6,138	)
Brazilian Real	J.P. Morgan		4,856,051		2,130,180	11/20/13		(2,159,207	)		(29,027	)
Canadian Dollar	J.P. Morgan		715,394		687,365	11/20/13		(685,845	)		1,520
Danish Krone	J.P. Morgan		4,722,685		861,321	11/20/13		(859,839	)		1,482
Euro	J.P. Morgan		4,284,830		5,789,199	11/20/13		(5,817,957	)		(28,758	)
Hong Kong Dollar	J.P. Morgan		4,412,427		569,113	11/20/13		(569,150	)		(37	)
Japanese Yen	J.P. Morgan		348,639,081		3,543,447	11/20/13		(3,545,874	)		(2,427	)
New Zealand Dollar	J.P. Morgan		304,019		246,338	11/20/13		(250,847	)		(4,509	)
Norwegian Krone	J.P. Morgan		2,996,451		496,702	11/20/13		(503,048	)		(6,346	)
Philippine Peso	J.P. Morgan		103,381,217		2,378,657	11/20/13		(2,393,467	)		(14,810	)
Pound Sterling	J.P. Morgan		520,765		827,951	11/20/13		(834,894	)		(6,943	)
South African Rand	J.P. Morgan		23,993,318		2,392,815	11/20/13		(2,384,537	)		8,278
Swedish Krona	J.P. Morgan		20,545,654		3,162,572	11/20/13		(3,169,332	)		(6,760	)
Swiss Franc	J.P. Morgan		1,668,480		1,818,030	11/20/13		(1,839,088	)		(21,058	)
Thai Baht	J.P. Morgan		58,800,297		1,861,615	11/20/13		(1,887,194	)		(25,579	)
Total										$	(141,112	)

For the year ended October 31, 2013, the Fund's investment in forward contracts had an average value of $3,174,249.

Options: Premiums received by the Fund upon writing a covered call option or a put option are recorded in the liability section of the Statement of Assets and Liabilities and are subsequently adjusted to the current market value. When an option is exercised, closed, or expired, the Fund realizes a gain or loss and the liability is eliminated.

When writing a covered call option, the Fund, in return for the premium, gives up the opportunity for profit from a price increase in the underlying security above the exercise price, but conversely retains the risk of loss should the price of the security decline. When writing a put option, the Fund, in return for the premium, takes the risk that it must purchase the underlying security at a price that may be higher than the current market price of the security. If a put option that the Fund has written expires unexercised, the Fund will realize a gain in the amount of the premium. All securities covering outstanding options are held in escrow by the custodian bank.

Written option transactions were used in an attempt to generate incremental returns for the Fund for the year ended October 31, 2013. Written option transactions for the Fund for the year ended October 31, 2013 were:

	Number of Contracts			Premiums
Outstanding at October 31, 2012		254		$	31,242
Options written		11,857			3,098,876
Options terminated in closing purchase transactions		(3,000	)		(521,712	)
Options exercised		(93	)		(26,270	)
Options expired		(1,122	)		(346,075	)
Outstanding at October 31, 2013		7,896		$	2,236,061

Premiums paid by the Fund upon purchasing a covered call option are recorded in the asset section of the Fund's Statement of Assets and Liabilities and are subsequently adjusted to the current market value. When an option is exercised, closed, or expired, the Fund realizes a gain or loss and the asset is eliminated.

For purchased call options, the Fund's loss is limited to the amount of the option premium paid.

Purchased option transactions were used in an attempt to manage or adjust the risk profile and the investment exposure of the Fund to certain securities for the Fund and enhance returns for the year ended October 31, 2013. Purchased option transactions for the Fund for the year ended October 31, 2013 were:

	Number of Contracts			Premiums
Outstanding at October 31, 2012		794		$	116,525
Options purchased		18,624			5,813,818
Options terminated in closing sale transactions		(4,285	)		(950,206	)
Options exercised		(334	)		(57,109	)
Options expired		(5,271	)		(927,985	)
Outstanding at October 31, 2013		9,528		$	3,995,043

For the year ended October 31, 2013, the Fund had an average market value of $317,649 and $636,100 in purchased options and written options, respectively.

At October 31, 2013, the Fund had the following derivatives (which did not qualify as hedging instruments under ASC 815), grouped by primary risk exposure:

Asset Derivatives

Derivative Type	Statement of Assets and Liabilities Location	Currency Risk		Equity Risk		Total
Equity swaps	Swaps, at value	$	—	$	440,123	$	440,123
Forward contracts	Receivable for open forward foreign currency contracts		39,118		—		39,118
Purchased options	Investments in securities, at value		—		1,845,297		1,845,297
Total Value—Assets		$	39,118	$	2,285,420	$	2,324,538

Liability Derivatives

Derivative Type	Statement of Assets and Liabilities Location	Currency Risk			Equity Risk			Total
Total return swaps	Swaps, at value	$	—		$	(409,350	)	$	(409,350	)
Forward contracts	Payable for open forward foreign currency contracts		(194,143	)		—			(194,143	)
Option contracts written	Written options, at value		—			(925,318	)		(925,318	)
Total Value—Liabilities		$	(194,143	)	$	(1,334,668	)	$	(1,528,811	)

The impact of the use of these derivative instruments on the Statement of Operations during the year ended October 31, 2013, was as follows:

Realized Gain (Loss)

Derivative Type	Statement of Operations Location	Currency Risk		Equity Risk			Total
Forward contracts	Net realized gain (loss) on: forward foreign currency contracts	$	27,633	$	—		$	27,633
Futures contracts	Net realized gain (loss) on: financial futures contracts		—		(58,511	)		(58,511	)
Option contracts written	Net realized gain (loss) on: options written		—		275,033			275,033
Option contracts purchased	Net realized gain (loss) on: sales of investment securities of unaffiliated issuers		—		(1,065,160	)		(1,065,160	)
Swap contracts	Net realized gain (loss) on: swap contracts		—		505,524			505,524
Total Realized Gain (Loss)		$	27,633	$	(343,114	)	$	(315,481	)

Change in Appreciation (Depreciation)

Derivative Type	Statement of Operations Location	Currency Risk			Equity Risk			Total
Forward contracts	Change in net unrealized appreciation (depreciation) in value of: forward foreign currency contracts	$	(155,025	)	$	—		$	(155,025	)
Futures contracts	Change in net unrealized appreciation (depreciation) in value of: financial futures contracts		—			(2,795	)		(2,795	)
Option contracts written	Change in net unrealized appreciation (depreciation) in value of: options written		—			1,301,528			1,301,528
Option contracts purchased	Change in net unrealized appreciation (depreciation) in value of: unaffiliated investment securities		—			(2,146,368	)		(2,146,368	)
Swap contracts	Change in net unrealized appreciation (depreciation) in value of: swap contracts		—			30,773			30,773
Total Change in Appreciation (Depreciation)		$	(155,025	)	$	(816,862	)	$	(971,887	)

13 Indemnifications: Like many other companies, the Trust's organizational documents provide that its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, both in some of its principal service contracts and in the normal course of its business, the Trust enters into contracts that provide indemnifications to other parties for certain types of losses or liabilities. The Trust's maximum exposure under these arrangements is unknown as this could involve future claims against the Trust.

14 Expense offset arrangement: The Fund has an expense offset arrangement in connection with its custodian contract. For the year ended October 31, 2013, the impact of this arrangement was a reduction of expenses of $6,322.

15 Other: All net investment income and realized and unrealized capital gains and losses of the Fund are allocated, on the basis of relative net assets, pro rata among its respective classes.

Note B—Management Fees, Administration Fees, Distribution Arrangements, and Other Transactions with Affiliates:

The Fund retains Management as its investment manager under a Management Agreement. For such investment management services, the Fund pays Management a fee at the annual rate of 1.700% of the first $250 million of the Fund's average daily net assets, 1.675% of the next $250 million, 1.650% of the next $250 million, 1.625% of the next $250 million, 1.600% of the next $500 million, 1.575% of the next $2.5 billion, and 1.550% of average daily net assets in excess of $4 billion. Prior to February 28, 2013, the Fund paid Management a fee at the annual rate of 2.000% of the first $250 million of the Fund's average daily net assets, 1.975% of the next $250 million, 1.950% of the next $250 million, 1.925% of the next $250 million, 1.900% of the next $500 million, 1.875% of the next $2.5 billion, and 1.850% of average daily net assets in excess of $4 billion. Accordingly, for the year ended October 31, 2013, the fee pursuant to the Management Agreement was equivalent to an annual effective rate of 1.732% of the Fund's average daily net assets.

The Fund retains Management as its administrator under an Administration Agreement. The Fund pays Management an administration fee at the annual rate of 0.06% of its average daily net assets under this agreement. In addition, the Fund's Institutional Class pays Management an administration fee at the annual rate of 0.09% of its average daily net assets under this agreement and the Fund's Class A and Class C pays Management an administration fee at the annual rate of 0.20% of its average daily net assets under this agreement. Additionally, Management retains JPM as its sub-administrator under a Sub-Administration Agreement. Management pays JPM a fee for all services received under the agreement.

Management has contractually agreed to waive current payment of fees and/or reimburse certain expenses of the Institutional Class, Class A and Class C of the Fund so that the total annual operating expenses of those classes do not exceed the expense limitations as detailed in the following table. These undertakings apply to the Fund's direct expenses and exclude interest, taxes, brokerage commissions, acquired fund fees and expenses, extraordinary expenses, and dividend and interest expenses on short sales, if any; consequently, net expenses may exceed the contractual expense limitations. The Fund has agreed that each of its respective classes will repay Management for fees and expenses waived or reimbursed for that class provided that repayment does not cause that class' annual operating expenses to exceed its contractual expense limitation in place at the time the fees and expenses were forgone or reimbursed. Any such repayment must be made within three years after the year in which Management incurred the expense.

During the year ended October 31, 2013, there was no repayment to Management under this agreement.

At October 31, 2013, contingent liabilities to Management under the contractual expense limitation were as follows:

					Expenses Reimbursed in Fiscal Period Ending, October 31, 2013
					2012		2013
	Contractual Expense				Subject to Repayment until October 31,
Class	Limitation⁽¹⁾⁽²⁾			Expiration	2015		2016
Institutional Class		1.97	%	10/31/16	$	816,372	$	447,655
Class A		2.33	%	10/31/16		24,960		165,195
Class C		3.08	%	10/31/16		4,503		23,788

(1) Expense limitation per annum of the respective class' average daily net assets.

(2) Prior to February 28, 2013, the contractual expense limitations were 2.45%, 2.81% and 3.56% for the Institutional Class, Class A and Class C shares, respectively. In addition, from January 2, 2013 to February 28, 2013, Management had voluntarily undertaken to waive current payment of fees and/or reimburse certain expenses of Institutional Class, Class A and Class C shares so that their Operating Expenses were limited to 1.97%, 2.33% and 3.08%, respectively, per annum of their average daily net assets. For the year ended October 31, 2013, voluntary reimbursements for Institutional Class, Class A and Class C amounted to $27,734, $4,524 and $539, respectively. These amounts are not subject to recovery by Management.

NB Alternative Investment Management LLC ("NBAIM"), as the sub-adviser to the Fund, is retained by Management to provide day-to-day investment management services and receives a monthly fee paid by Management. As investment manager, Management is responsible for overseeing the investment activities of NBAIM. Several individuals who are officers and/or Trustees of the Trust are also employees of NBAIM and/or Management.

Management and NBAIM are indirect subsidiaries of Neuberger Berman Group LLC (("NBG") and together with its consolidated subsidiaries ("NB Group")). NBSH Acquisition, LLC ("NBSH" and together with NBG, the "NB Parties"), which is owned by portfolio managers, members of the NB Group management team and certain of NB Group's key employees, senior professionals, and certain of their permitted transferees, owns, as of September 30, 2013, approximately 76% of NBG's equity, and Lehman Brothers Holdings Inc. ("LBHI") and certain of its subsidiaries (collectively the "LBHI Parties") own the remaining 24% of such equity. Pursuant to agreements among the NB Parties and the LBHI Parties, as well as the issuance of NBSH equity to employees with respect to their previously made equity elections relating to 2013 compensation, it is expected that NBSH will own 81% of NBG's equity as of January 1, 2014. NBG has the opportunity to continue to redeem the remaining NBG equity held by the LBHI Parties through a process that is expected to end in 2016 (and if necessary, 2017).

Management and NBAIM engage Cramer Rosenthal McGlynn, LLC, GAMCO Asset Management, Inc., Good Hill Partners LP, Lazard Asset Management LLC, Levin Capital Strategies, L.P., Loeb Arbitrage Management LP, MacKay Shields LLC, Sound Point Capital Management, L.P., Turner Investments, L.P., and Visium Asset Management, LP as subadvisers to provide investment management services. Management and NBAIM are not currently allocating the Fund's assets to Mackay Shields. Management compensates the subadvisers out of the investment advisory fees it receives from the Fund.

However, Management receives fees from Class A and Class C under their distribution plans (each a "Plan", collectively, the "Plans") pursuant to Rule 12b-1 under the 1940 Act. The Plans provide that, as compensation for administrative and other services provided to these classes, Management's activities and expenses related to the sale and distribution of these classes, and ongoing services provided to investors in these classes, Management receives from each of these respective classes a fee at the annual rate of 0.25% of Class A's and 1.00% of Class C's average daily net assets. Management receives this amount to provide distribution and shareholder servicing for these

classes and pays a portion of it to institutions that provide such services. Those institutions may use the payments for, among other purposes, compensating employees engaged in sales and/or shareholder servicing. The amount of fees paid by each class during any year may be more or less than the cost of distribution and other services provided to that class. FINRA rules limit the amount of annual distribution fees that may be paid by a mutual fund and impose a ceiling on the cumulative distribution fees paid. The Trust's Plans comply with those rules.

Class A shares of the Fund are generally sold with an initial sales charge of up to 5.75% and no contingent deferred sales charge ("CDSC"), except that a CDSC of 1.00% applies to certain redemptions made within 18 months following purchases of $1 million or more without an initial sales charge. Class C shares of the Fund are sold with no initial sales charge and a 1.00% CDSC if shares are sold within one year after purchase.

	Underwriter				Broker-Dealer
	Net Initial Sales Charges		CDSC		Net Initial Sales Charges		CDSC
Class A	$	18,423	$	—	$	—	$	—
Class C		—		1,342		—		—

Note C—Securities Transactions:

During the year ended October 31, 2013, there were purchase and sale transactions of long-term securities (excluding swap contracts, financial futures contracts and option contracts) as follows:

Purchases				Securities Sold Short				Sales				Covers on Securities Sold Short
$	511,945,770			$	171,539,832			$	262,888,542			$	91,250,930

During the year ended October 31, 2013, no brokerage commissions on securities transactions were paid to affiliated brokers.

Note D—Fund Share Transactions:

Share activity for the year ended October 31, 2013 and for the period ended October 31, 2012 was as follows:

	For the Year Ended October 31, 2013									For the Period Ended October 31, 2012
	Shares Sold		Shares Issued on Reinvestment of Dividends and Distributions		Shares Redeemed			Total		Shares Sold		Shares Issued on Reinvestment of Dividends and Distributions		Shares Redeemed			Total
Institutional Class		28,662,260		17,121		(2,140,871	)		26,538,510		3,352,383		—		(30,293	)		3,322,090	⁽¹⁾
Class A		11,706,206		898		(359,746	)		11,347,358		175,493		—		(80	)		175,413	⁽¹⁾
Class C		1,982,903		198		(20,340	)		1,962,761		22,937		—		—			22,937	⁽¹⁾

(1) Period from May 15, 2012 (Commencement of Operations) to October 31, 2012.

Note E—Recent Accounting Pronouncement:

In December 2011, the Financial Accounting Standards Board issued Accounting Standards Update 2011-11 Disclosures about Offsetting Assets and Liabilities ("ASU 2011-11"). Effective for annual reporting periods beginning on or after January 1, 2013 and interim periods within those annual periods, ASU 2011-11 is intended to

enhance disclosure requirements on the offsetting of financial assets and liabilities. At this time, Management is evaluating the implications of ASU 2011-11 and its impact on the financial statements.

Note F—Subsequent Event:

Effective November 1, 2013, NB Management engaged SLS Capital Management, LLC ("SLS") as a new subadviser for the Fund. In connection with the addition of SLS, a portion of the Fund's assets may be allocated to an investment strategy that focuses on long and short equity.

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Financial Highlights

The following table includes selected data for a share outstanding throughout each period and other performance information derived from the Financial Statements. Per share amounts that round to less than $0.01 or $(0.01) per share are presented as $0.00 or $(0.00), respectively. Net Asset amounts with a zero balance may reflect actual amounts rounding to less than $0.1 million. A "—" indicates that the line item was not applicable in the corresponding period.

	Net Asset Value, Beginning of Year		Net Investment Income (Loss)^@			Net Gains or Losses on Securities (both realized and unrealized)		Total From Investment Operations			Dividends from Net Investment Income			Distributions from Net Realized Capital Gains			Tax Return of Capital		Total Distributions			Net Asset Value, End of Year
Absolute Return Multi-Manager Fund
Institutional Class
10/31/2013	$	10.00	$	(0.08	)	$	1.00	$	0.92		$	(0.02	)	$	(0.04	)	$	—	$	(0.06	)	$	10.86
Period from 5/15/2012^{^}to 10/31/2012	$	10.00	$	(0.08	)	$	0.08	$	—		$	—		$	—		$	—	$	—		$	10.00
Class A
10/31/2013	$	9.99	$	(0.12	)	$	0.99	$	0.87		$	—		$	(0.04	)	$	—	$	(0.04	)	$	10.82
Period from 5/15/2012^{^}to 10/31/2012	$	10.00	$	(0.09	)	$	0.08	$	(0.01	)	$	—		$	—		$	—	$	—		$	9.99
Class C
10/31/2013	$	9.95	$	(0.21	)	$	1.01	$	0.80		$	—		$	(0.04	)	$	—	$	(0.04	)	$	10.71
Period from 5/15/2012^{^} to 10/31/2012	$	10.00	$	(0.13	)	$	0.08	$	(0.05	)	$	—		$	—		$	—	$	—		$	9.95

See Notes to Financial Highlights

	Total Return^††			Net Assets, End of Year (in millions)		Ratio of Gross Expenses to Average Net Assets^#			Ratio of Gross Expenses to Average Net Assets (excluding Dividend expenses on securities sold short)			Ratio of Net Expenses to Average Net Assets			Ratio of Net Expenses to Average Net Assets (excluding Dividend expenses on securities sold short)			Ratio of Net Investment Income/ (Loss) to Average Net Assets			Portfolio Turnover Rate (including securities sold short)**			Portfolio Turnover Rate (excluding securities sold short)**
Absolute Return Multi-Manager Fund
Institutional Class
10/31/2013		9.19	%	$	324.3		2.89	%		2.60	%		2.30	%^‡‡		2.01	%^‡‡		(0.74	%)		421	%		330	%
Period from 5/15/2012^{^}to 10/31/2012		0.00	%**	$	33.2		7.86	%*^‡		7.50	%*^‡		2.81	%*^‡		2.45	%*^‡		(1.81	%)*^‡		270	%		213	%
Class A
10/31/2013		8.70	%	$	124.7		3.27	%		2.99	%		2.62	%^‡‡		2.34	%^‡‡		(1.17	%)		421	%		330	%
Period from 5/15/2012^{^}to 10/31/2012		(0.10	%)**	$	1.8		8.67	%*^‡		8.26	%*^‡		3.22	%*^‡		2.81	%*^‡		(2.02	%)*^‡		270	%		213	%
Class C
10/31/2013		8.03	%	$	21.3		4.01	%		3.72	%		3.38	%^‡‡		3.09	%^‡‡		(1.94	%)		421	%		330	%
Period from 5/15/2012^{^} to 10/31/2012		(0.50	%)**	$	0.2		13.12	%*^‡		12.74	%*^‡		3.94	%*^‡		3.56	%*^‡		(2.86	%)*^‡		270	%		213	%

Notes to Financial Highlights

†† Total return based on per share NAV reflects the effects of changes in NAV on the performance of the Fund during the fiscal period and assumes income dividends and other distributions, if any, were reinvested but does not reflect the effect of sales charges. Results represent past performance and do not indicate future results. Current returns may be lower or higher than the performance data quoted. Investment returns and principal may fluctuate and shares when redeemed may be worth more or less than original cost. Total return would have been lower if Management had not reimbursed and/or waived certain expenses.

# Represents the annualized ratios of net expenses to average daily net assets if Management had not reimbursed certain expenses and/or waived a portion of the investment management fee.

‡ Organization expense, which is a non-recurring expense, is included in these ratios on a non-annualized basis.

@ Calculated based on the average number of shares outstanding during the fiscal period.

^ The date investment operations commenced.

** Not annualized.

* Annualized.

‡‡ After reimbursement of expenses and/or waiver of a portion of the investment management fee by Management. The Fund is required to calculate an expense ratio without taking into consideration any expense reductions related to expense offset arrangements. Had the Fund not received expense reductions related to expense offset arrangements, the annualized ratios of net expenses to average daily net assets would have been:

	Including Expenses on Securities Sold Short			Excluding Expenses on Securities Sold Short
	Year Ended October 31, 2013
Absolute Return Multi-Manager Fund Institutional Class		2.30	%		2.01	%
Absolute Return Multi-Manager Fund Class A		2.63	%		2.35	%
Absolute Return Multi-Manager Fund Class C		3.39	%		3.10	%

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Neuberger Berman Alternative Funds and Shareholders of
Neuberger Berman Absolute Return Multi-Manager Fund

We have audited the accompanying statement of assets and liabilities of Neuberger Berman Absolute Return Multi-Manager Fund, one of the series constituting the Neuberger Berman Alternative Funds, (the "Fund"), including the schedule of investments, as of October 31, 2013, and the related statement of operations for the year then ended, the statement of changes in net assets, and the financial highlights for each of the years or periods indicated therein. These financial statement and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statement and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Fund's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2013, by correspondence with the custodian, and others or by other appropriate auditing procedures where replies from others were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Neuberger Berman Absolute Return Multi-Manager Fund, a series of Neuberger Berman Alternative Funds, at October 31, 2013, the results of its operations for the year then ended, the changes in its net assets, and the financial highlights for each of the periods indicated therein, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts
December 24, 2013

Neuberger Berman Alternative Funds N-CSRCertified annual shareholder report (management investment company)