As filed with the Securities and Exchange Commission on November 7, 2011
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: 811-00582
NEUBERGER BERMAN EQUITY 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 Equity 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: August 31, 2011
Date of reporting period: August 31, 2011
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 Equity Funds | |||||
Investor Class Shares Trust Class Shares Advisor Class Shares Institutional Class Shares | Class A Shares Class C Shares Class R3 Shares | ||||
Emerging Markets Equity Fund Equity Income Fund Focus Fund Genesis Fund Global Equity Fund Global Thematic Opportunities Fund Guardian Fund International Fund International Institutional Fund International Large Cap Fund Intrinsic Value Fund | Large Cap Disciplined Growth Fund Large Cap Value Fund Mid Cap Growth Fund Multi-Cap Opportunities Fund Partners Fund Real Estate Fund Regency Fund Select Equities Fund Small Cap Growth Fund Socially Responsive Fund | ||||
Annual Report | |||||
August 31, 2011 |
Contents |
THE FUNDS | ||||
President's Letter | 1 | |||
PORTFOLIO COMMENTARY (UNAUDITED) | ||||
Emerging Markets Equity Fund | 2 | |||
Equity Income Fund | 6 | |||
Focus Fund | 10 | |||
Genesis Fund | 14 | |||
Global Equity Fund | 17 | |||
Global Thematic Opportunities Fund | 21 | |||
Guardian Fund | 25 | |||
International Fund | 29 | |||
International Institutional Fund | 33 | |||
International Large Cap Fund | 36 | |||
Intrinsic Value Fund | 40 | |||
Large Cap Disciplined Growth Fund | 44 | |||
Large Cap Value Fund | 48 | |||
Mid Cap Growth Fund | 52 | |||
Multi-Cap Opportunities Fund | 56 | |||
Partners Fund | 60 | |||
Real Estate Fund | 64 | |||
Regency Fund | 68 | |||
Select Equities Fund | 72 | |||
Small Cap Growth Fund | 76 | |||
Socially Responsive Fund | 80 | |||
FUND EXPENSE INFORMATION | 90 | |||
SCHEDULE OF INVESTMENTS/TOP TEN EQUITY HOLDINGS | ||||
Emerging Markets Equity Fund | 94 | |||
Equity Income Fund | 97 | |||
Focus Fund | 99 | |||
Genesis Fund | 100 | |||
Global Equity Fund | 103 |
Global Thematic Opportunities Fund | 106 | |||
Guardian Fund | 108 | |||
International Fund | 109 | |||
International Institutional Fund | 112 | |||
International Large Cap Fund | 115 | |||
Intrinsic Value Fund | 118 | |||
Large Cap Disciplined Growth Fund | 120 | |||
Large Cap Value Fund | 122 | |||
Mid Cap Growth Fund | 124 | |||
Multi-Cap Opportunities Fund | 126 | |||
Partners Fund | 127 | |||
Real Estate Fund | 129 | |||
Regency Fund | 130 | |||
Select Equities Fund | 132 | |||
Small Cap Growth Fund | 133 | |||
Socially Responsive Fund | 135 | |||
FINANCIAL STATEMENTS | 145 | |||
FINANCIAL HIGHLIGHTS (ALL CLASSES) PER SHARE DATA | ||||
Emerging Markets Equity Fund | 207 | |||
Equity Income Fund | 207 | |||
Focus Fund | 209 | |||
Genesis Fund | 211 | |||
Global Equity Fund | 213 | |||
Global Thematic Opportunities Fund | 213 | |||
Guardian Fund | 213 | |||
International Fund | 215 | |||
International Institutional Fund | 217 | |||
International Large Cap Fund | 217 | |||
Intrinsic Value Fund | 219 | |||
Large Cap Disciplined Growth Fund | 221 | |||
Large Cap Value Fund | 221 | |||
Mid Cap Growth Fund | 223 | |||
Multi-Cap Opportunities Fund | 225 | |||
Partners Fund | 227 | |||
Real Estate Fund | 229 | |||
Regency Fund | 229 | |||
Select Equities Fund | 231 | |||
Small Cap Growth Fund | 233 | |||
Socially Responsive Fund | 235 | |||
Reports of Independent Registered Public Accounting Firms | 245 | |||
Directory | 247 | |||
Trustees and Officers | 248 | |||
Proxy Voting Policies and Procedures | 257 | |||
Quarterly Portfolio Schedule | 257 | |||
Board Consideration of the Management and | ||||
Sub-Advisory Agreements | 258 | |||
Notice to Shareholders | 259 |
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. ©2011 Neuberger Berman Management LLC. All rights reserved.
President's Letter (Unaudited)
Dear Fellow Shareholder,
Considering recent extreme market volatility and often discouraging macroeconomic news, equity market strength over much of the past fiscal year may come as a surprise. The S&P 500 Index returned 18.5% for the 12 months ended August 31, 2011—significantly above its long-term average (9.7% annualized since 1926, as tracked by Ibbotson Associates). During the same period, the MSCI EAFE® Index gained 10.5% and the MSCI Emerging Markets Index turned in a respectable 9.4% return.
These gains belie the fact that this reporting period contained two very different markets. As the period began, the markets, which had been threatened by the possibility of a double-dip recession through summer 2010, rallied. The Federal Reserve's second quantitative easing effort ("QE2") was a tremendous stimulus that, along with unexpectedly strong corporate earnings, returned the market to its feet. Economically sensitive areas led as risk appetites increased, and the S&P 500 advanced by over 27% through February 2011.
Market volatility began to increase in March in the wake of the disaster in Japan and worsening global economic news. The U.S. economy grew only 0.8% through the first half of 2011, bringing investor sentiment full circle to recessionary fears. In addition, the ending of QE2, alarming headlines from the European debt crisis, engineered slowdowns in China and India, and a once unthinkable downgrade of U.S. government debt aggravated fears. Risk aversion increased, with investors pulling over $30 billion from equity mutual funds in July alone. In August, the CBOE Volatility (VIX) Index spiked to 48, a level not seen since March 2009, and consumer confidence hit a two-year low.
While the period closed in uncertain territory, our portfolio managers generally remain guardedly optimistic, expecting continued slow growth ahead rather than recession. In August, total industrial production was 3.4% above its level a year ago. Inventory restocking, M&A activity, and slow, steady increases in capital expenditures could also support growth for the remainder of the year. In addition, corporate balance sheets remain healthy, and in many cases, flush with cash; and earnings continue to show resilience.
With headlines continuing to influence investor sentiment and behavior, however, ongoing concerns bear watching. Paramount among these is what course of action the U.S. government and EU leaders will take in addressing their serious deficit situations. The Fed has suggested that policymakers will consider further steps to help stimulate the U.S. economy and has initiated an effort to reduce longer term interest rates dubbed "Operation Twist." However, with interest rates extremely low, and after two rounds of quantitative easing, it is uncertain what more the Fed can do. At the time of this writing, EU leaders continue working toward a solution to address Greece's potential default.
Regarding the U.S., our hope is that the deeply divided government will move past partisanship to reach lasting solutions to fiscal challenges. Meanwhile, we are closely watching economic indicators such as industrial and service business data, and consumer spending.
We have seen three sharp market declines during the last three years. During each, correlations among equities rose and stocks declined indiscriminately. As the market recovered from the first two downturns, fundamentals-driven active managers were able to add value, as the stocks of companies best positioned for the ensuing economic backdrop outperformed. Although it's too early to know this time, we think our strengths as hands-on active managers are on our side. We continue to believe that managers employing tested strategies and in-depth research to build differentiated, advantaged portfolios will outperform over the long term.
Along these lines, we are pleased to have introduced two new mutual funds—Neuberger Berman Global Equity Fund and Neuberger Berman Global Thematic Opportunities Fund, which you can learn more about in this report. Along with our other relatively new fund, Neuberger Berman Global Allocation Fund, they reinforce our commitment to providing shareholders with global investment opportunities, through experienced management teams and disciplined investment approaches.
Thank you for your confidence in Neuberger Berman. We look forward to continuing to serve your investment needs.
Sincerely,
Robert Conti
President and CEO
Neuberger Berman Mutual Funds
1
Emerging Markets Equity Fund Commentary (Unaudited)
Neuberger Berman Emerging Markets Equity Fund Institutional Class generated a 3.44% total return for the fiscal year ended August 31, 2011, and underperformed its benchmark, the MSCI Emerging Markets (EM) Index, which provided a 9.40% return for the period. (Performance for all share classes is provided in the table immediately following this letter.)
From late summer through calendar year-end 2010, emerging markets continued their strong run, benefiting from expectations for improving global growth and ongoing local demographic and economic strength. Several factors converged, as the fiscal year progressed, however, that pulled back performance. As economic growth in developed markets came into question, with serious debt and political headwinds in both the U.S. and eurozone, markets weighted toward exports (global sectors) came under pressure. Additionally, concerns over inflation prompted investor outflows, particularly from local, smaller cap sectors. Central banks in several high growth economies, including China and India, began raising interest rates in an effort to control inflation and manage growth. Food inflation is a particular concern across emerging markets as it can make up almost half of the consumer price index (CPI) in certain countries.
Taking the fiscal year as a whole, emerging markets turned in high single-digit returns, underperforming both international developed markets and the S&P 500 Index. Although markets generally slowed down somewhat after their strong run, results remained positive for all sectors except Utilities. Consumer Discretionary and Staples stocks showed significant strength for the period, followed by Telecommunication Services. In addition to Utilities, Financials and Industrials stocks were areas of weakness.
By country, Thailand, Indonesia and Mexico were among the strongest markets, while Egypt, Turkey and India were the weakest. With the exception of a relatively robust Russian market, the powerful BRIC economies—Brazil, Russia, India and China—underperformed significantly this period.
Relative to the benchmark, the portfolio benefited most from underweights in the two weakest sectors, Utilities and Financials, and from our overweight in Consumer Discretionary holdings. Stock selection within Consumer Staples was also additive to performance. An overweight to the relatively weak Industrials and Health Care sectors and an underweight in Energy, relative to the benchmark, were detrimental to peformance.
Among individual holdings, Korean auto parts manufacturer Hyundai Mobis was the Fund's top contributor to performance. Hyundai/Kia Motors benefited from a loss of production from Japanese automakers. Longer term, we believe the company will benefit as Japanese automakers diversify their supplier base. Indonesia's PT Global Mediacom, an integrated pay TV and broadcasting company, benefited from favorable analyst reports highlighting the company's value. International Container Terminal, a Philippines based terminal port operator, performed well on strong fundamentals and new terminal concession wins.
Disappointments included Indian cable TV company DEN Networks. In our view, DEN is positioned to benefit from the migration to digital cable, but regulatory hurdles delayed the shutdown of the analog spectrum. Boer Power, a Chinese industrial company, underperformed as competition eroded the profitability of their Electronic Distribution Systems business. Xingda International, a leading Chinese wire manufacturer, detracted as margins dropped in both its auto and solar businesses. We believe these businesses' margins will recover over time. Supply disruptions impacted Melfas, a capacitive touch-sensor chip company. The possibility that Samsung, their biggest customer, may be developing their own chips raises significant risks for the company, and we sold the stock late in the reporting period.
We continue to see secular growth opportunities in the domestic sectors of the emerging markets. Fundamentals have remained solid and have been supported by a rising middle class, urbanization and governments with healthy balance sheets. While we acknowledge structural inflation will likely remain elevated, on average, wages have been rising faster than inflation, which combined with high savings rates bodes well for consumption over the long term.
From a sector perspective, Health Care continues to be our largest overweight, offering good consumer exposure, with a record of high returns and good cash flow generation at reasonable valuations. We are also constructive on domestically
2
driven Industrials, due to their potential role in resolving large infrastructure bottlenecks, capacity constraints and rising labor input costs—a recurring theme across many countries, including Brazil, India, China and the Philippines. We are underweighted in Financials compared to the benchmark, where we find valuations expensive. We are also slightly overweighted in Consumer Staples.
At the country level, we see growth and value in Thailand (where we think the decisive parliamentary victory of the Puea Thai party bodes well for stability), Turkey and the Philippines. We believe India offers interesting mid-cap opportunities, as does Brazil on a selective basis. We are more cautious on component-oriented export markets such as Korea and Taiwan, but are finding select opportunities. We also continue to see opportunities in the domestic sectors in China, although considerable government policy noise (to address rapidly rising property prices and wage increases) has put downward pressure on the market. While we see potential for a property bubble in China's largest cities, we continue to think that risks on a national level are largely overstated. We also believe that local government debt is manageable considering the significant reserves of the national government.We feel the biggest risk will likely be in Chinese financials, where we are underweight compared to the benchmark.
We believe that our bottom-up fundamental analysis within a macro perspective will help us continue to capture the longer-term opportunity these markets hold.
Sincerely,
Conrad Saldanha
Portfolio Manager
The risks involved in seeking capital appreciation from investments primarily in companies based outside the United States are set forth in the prospectus and statement of additional information.
Investing in foreign securities involves greater risks than investing in securities of U.S. issuers, including currency fluctuations, changes in local economic and political conditions, and the need to operate in less regulated financial markets. These risks are typically heightened for investments in emerging markets.
To the extent that the Fund emphasizes small-, mid- or large-cap stocks, it takes on the associated risks. At times, large-cap stocks may lag other types of stocks in performance, which could cause a fund holding those stocks to perform worse than certain other funds. Small- and mid-capitalization stocks are more vulnerable to financial risks and other risks than stocks of larger companies. They also trade less frequently and in lower volume than larger company stocks, so their market prices tend to be more volatile.
The composition, industries and holdings of the Fund are subject to change.
3
Emerging Markets Equity Fund (Unaudited)
TICKER SYMBOLS |
Institutional Class | NEMIX | ||
Class A | NEMAX | ||
Class C | NEMCX | ||
Class R3 | NEMRX |
SECTOR ALLOCATION |
(as a % of Total Investments) | |||||
Consumer Discretionary | 12.7 | % | |||
Consumer Staples | 7.5 | ||||
Energy | 9.4 | ||||
Financials | 14.5 | ||||
Health Care | 5.6 | ||||
Industrials | 10.0 | ||||
Information Technology | 11.6 | ||||
Materials | 14.2 | ||||
Telecommunication Services | 7.2 | ||||
Utilities | 1.6 | ||||
Short-Term Investments | 5.7 | ||||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS2,9,12 |
Average Annual Total Return Ended 08/31/2011 | |||||||||||
Inception Date | 1 Year | Life of Fund | |||||||||
At NAV | |||||||||||
Institutional Class | 10/08/2008 | 3.44 | % | 21.94 | % | ||||||
Class A | 10/08/2008 | 3.16 | % | 21.68 | % | ||||||
Class C | 10/08/2008 | 2.41 | % | 20.76 | % | ||||||
Class R312 | 06/21/2010 | 2.73 | % | 21.61 | % | ||||||
With Sales Charge | |||||||||||
Class A | –2.77 | % | 19.22 | % | |||||||
Class C | 1.41 | % | 20.76 | % | |||||||
Index | |||||||||||
MSCI Emerging Markets Index1,18 | 9.40 | % | 19.88 | % |
Performance data quoted represent past performance and do not indicate future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Results are shown on a "total return" basis and include reinvestment of all income dividends and distributions.
Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2010 were 6.65%, 6.72%, 7.06% and 2.76% for Institutional Class, Class A, Class C and Class R3 shares, respectively (prior to any fee waivers and/or expense reimbursements, if any). The expense ratios net of waivers and/or reimbursements were 1.27%, 1.52%, 2.27% and 1.92% for Institutional Class, Class A, Class C and Class R3 shares, respectively. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through August 31, 2014 for Institutional Class, Class A, Class C and Class R3 shares.
Total 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.
The results shown in the table do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares.
4
Emerging Markets Equity Fund (Unaudited)
COMPARISON OF A $1,000,000 INVESTMENT |
(000's 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. All results include the reinvestment of income dividends and distributions. The results shown in the graph do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
5
Equity Income Fund Commentary (Unaudited)
Neuberger Berman Equity Income Fund Institutional Class generated a 17.70% total return for the fiscal year ended August 31, 2011. As is typical during a strong rally in the equity market, the portfolio underperformed its benchmark, the S&P 500 Index, which generated an 18.50% return. (Performance for all share classes is provided in the table immediately following this letter.) Because of the portfolio's defensive positioning, however, it made headway relative to the index during the final quarter of the fiscal year, when the rally abated and volatility intensified.
The market's strength for much of the fiscal year was largely based on relatively strong economic expectations. Going into calendar year 2011, the consensus among analysts had been for U.S. GDP growth to be in the range of 3%-4%. In the final months of the reporting period, however, fears of a double-dip recession were reignited by renewed concern over the serious debt issues facing Greece and Europe in general, and what broader effects might be felt.
Against this shifting backdrop, the Fund performed well for a number of reasons. Real Estate Investment Trusts (REITs) were among the top performing asset classes for much of this period relative to the S&P 500 Index, even though they pulled back sharply during July and August. Representing approximately 20% of the portfolio's assets, our position in REITs—namely those focused on specialty and international areas—benefited performance. American Campus Communities, a student housing specialist, was among the top contributors, while RLJ Lodging and Suntec were detractors. We did not own RLJ the entire fiscal year, so the portfolio saw less of the benefit from the sector's positive run. We consider the company undervalued, and expect that its niche—longer-term lodging for consultant type clientele—may be a benefit given that the trend toward hiring consultants instead of full-time employees tends to be increasing. Suntec, a Singapore-based office and retail REIT, underperformed as investors questioned the sustainability of the strong growth in the Asian markets.
The portfolio also benefited from investments with exposure to emerging markets consumers, a theme within the portfolio for over two years now. In this category, names including Philip Morris International and Unilever benefited as wages in some emerging markets continued to increase, leading to a higher quality of living standards, particularly in Asia. Both were among top contributors this period.
Precious metals commodity-related stocks—gold in particular—also outperformed relative to the benchmark. Royal Gold was our strongest contributor this fiscal year, and Franco-Nevada also performed well. Gold prices increased as investors sought a safe haven against a weaker U.S. dollar, fears about U.S. debt, and market volatility. Both names also offer a modest dividend yield. Within the convertibles portion of the portfolio, NovaGold appreciated significantly as well, and we sold it for a gain.
Despite the fact that oil and gas prices declined somewhat during the fiscal year, several of our diversified Canadian oil sands holdings, including Crescent Point, Cenovus, and Arc Resources, performed extremely well. CNOOC, the Chinese oil and gas conglomerate, was also beneficial to results. That position was sold for a gain and we replaced it with PetroChina, which we believed had more significant upside potential. Despite the recent price movement, we remain positive on oil. From our point of view, prices over $75 per barrel are still quite profitable for our portfolio holdings, even the higher-cost producers.
The portfolio's Utilities investments, at just over 16% of assets, added value over the fiscal year as well. The sector appeared relatively attractive in recent months as investors sought yield in a volatile market. We witnessed several of our Utilities holdings raise their dividends this period. Among our holdings, CenterPoint Energy was a standout performer, with both a dividend increase and a big win in a Texas rate case, enabling the company to begin to recoup costs.
Our convertible bond holdings were a relative detriment this period. While absolute performance was positive, they lagged the market, as they tend to do during equity rallies. Still, they are an excellent source of income and generally help dampen volatility within the portfolio, in our view. Our focus continues to be on bonds with maturity or put dates of less than seven years.
6
Within convertibles and elsewhere, commodities including coal, timber and uranium fell somewhat out of favor as emerging markets economies began raising interest rates to help contain inflation. This, along with the slowdown in developed markets, took a toll on holdings including James River and Paladin, both convertible bonds, and Potlatch, one of our timber REITs.
While we thought earlier analyst estimates of 3% to 4% GDP growth were overly optimistic, we also believe fears of a double-dip recession are overblown and anticipate the U.S. will muddle through with a growth rate near 1% through 2012, barring unforeseen issues in Europe. In the current environment, however, we think fear has overtaken greed, and the markets have been weak and extremely volatile as investors may react nervously to headlines and analyze each economic data release for meaning and direction.
We consider the portfolio to be well positioned against the volatility that we expect will continue. With its defensive characteristics and yield component, the portfolio typically outperforms when markets are difficult. Additionally, with the strength in our companies' balance sheets and the benefit of rising dividends, we think the Fund may be a good alternative to the bond market for investors seeking income.
Sincerely,
Richard S. Levine, Tony Gleason and Sandy Pomeroy
Portfolio Co-Managers
The risks involved in seeking capital appreciation from investments in a wide array of stocks are set forth in the prospectus and statement of additional information.
To the extent that the Fund emphasizes small-, mid- or large-cap stocks, it takes on the associated risks. At times, large-cap stocks may lag other types of stocks in performance, which could cause a fund holding those stocks to perform worse than certain other funds. Small- and mid-capitalization stocks are more vulnerable to financial risks and other risks than stocks of larger companies. They also trade less frequently and in lower volume than larger company stocks, so their market prices tend to be more volatile.
Investing in foreign securities involves greater risks than investing in securities of U.S. issuers, including currency fluctuations, changes in local economic and political conditions, and the need to operate in less regulated financial markets. These risks are typically heightened for investments in emerging markets.
The composition, industries and holdings of the Fund are subject to change.
7
Equity Income Fund (Unaudited)
TICKER SYMBOLS |
Institutional Class | NBHIX | ||
Class A | NBHAX | ||
Class C | NBHCX | ||
Class R3 | NBHRX |
SECTOR ALLOCATION |
(as a % of Total Investments) | |||||
Consumer Discretionary | 2.1 | % | |||
Consumer Staples | 7.6 | ||||
Energy | 12.0 | ||||
Financials | 23.4 | ||||
Health Care | 3.8 | ||||
Industrials | 7.5 | ||||
Information Technology | 1.2 | ||||
Materials | 5.3 | ||||
Telecommunication Services | 5.2 | ||||
Utilities | 16.1 | ||||
Other | 10.6 | ||||
Short-Term Investments | 5.2 | ||||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS2,9 |
Average Annual Total Return Ended 08/31/2011 | |||||||||||||
Inception Date | 1 Year | Life of Fund | |||||||||||
At NAV | |||||||||||||
Institutional Class16 | 06/09/2008 | 17.70 | % | 6.60 | % | ||||||||
Class A16 | 06/09/2008 | 17.27 | % | 6.31 | % | ||||||||
Class C16 | 06/09/2008 | 16.31 | % | 5.79 | % | ||||||||
Class R316 | 06/21/2010 | 16.92 | % | 6.42 | % | ||||||||
With Sales Charge | |||||||||||||
Class A16 | 10.52 | % | 5.01 | % | |||||||||
Class C16 | 15.31 | % | 5.79 | % | |||||||||
Index | |||||||||||||
S&P 500 Index1,18 | 18.50 | % | –0.23 | % |
The performance data for each class includes the performance of the Fund's oldest share class, Trust Class, from November 2, 2006 through June 9, 2008. The performance data for Class R3 also includes the performance of the Fund's Institutional Class from June 9, 2008 through June 21, 2010. See footnote 16 for information about the effects of the different fees paid by each class.
Performance data quoted represent past performance and do not indicate future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Results are shown on a "total return" basis and include reinvestment of all income dividends and distributions.
Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2010 were 1.02%, 1.37%, 2.13% and 1.44% for Institutional Class, Class A, Class C and Class R3 shares, respectively (prior to any fee waivers and/or expense reimbursements, if any). The expense ratios net of waivers and/or reimbursements were 0.81%, 1.17%, 1.92% and 1.42% for Institutional Class, Class A, Class C and Class R3 shares, respectively. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through August 31, 2014 for Institutional Class, Class A, Class C and Class R3 shares.
Total 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.
The results shown in the table do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares.
8
Equity Income Fund (Unaudited)
COMPARISON OF A $1,000,000 INVESTMENT16 |
(000's 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. All results include the reinvestment of income dividends and distributions. The results shown in the graph do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
9
Focus Fund Commentary (Unaudited)
Neuberger Berman Focus Fund Investor Class generated a 17.61% total return for the fiscal year ended August 31, 2011 and trailed its benchmark, the S&P 500 Index, which provided an 18.50% return for the period. (Performance for all share classes is provided in the table immediately following this letter.)
The fiscal year was an extremely volatile time for the markets. From a strong start in the fall of 2010 through the first calendar quarter of 2011, investors appeared optimistic that the economic recovery was progressing well, and that the GDP growth rate would accelerate as the year progressed. In late spring, the markets experienced a setback as investors struggled with the potential impact of a second round of serious sovereign debt issues in Europe, signs of slowing growth combined with contentious debt ceiling negotiations in the U.S., and the possibility of decelerating growth in emerging markets. Equities declined in response and volatility rose for the remainder of the fiscal period.
Although the Fund held its ground fairly well during the decline, market conditions were something of a headwind. Nonetheless, because the Fund is a concentrated portfolio of our analysts' best ideas, we believe our shareholders will benefit if headline risk declines and investors once again evaluate opportunities in a way that more clearly plays to the strengths of bottom-up active managers—on business prospects, valuations and fundamentals.
For the fiscal year as a whole, cyclical sectors led the market as investor optimism reigned for roughly two-thirds of the reporting period. All sectors in the S&P 500 Index except for Financials were positive for the fiscal year, with the best returns coming from the Energy and Consumer Discretionary sectors. The more defensive Telecommunication Services and Utilities sectors underperformed the index slightly over the period.
Within the portfolio, Information Technology holdings detracted the most from performance relative to the benchmark, although Energy holdings also underperformed. Within Information Technology, Apple was a top contributor, but poor performance from Hewlett-Packard and NXP Semiconductors counteracted any positive effect. Hewlett-Packard had been performing well under the direction of CEO Mark Hurd, who was ousted in August 2010. As new management took the helm, we continued to believe there was value in the company, but as earnings weakened and the company's new strategic direction became less clear, we sold our position, finding what we consider better opportunities elsewhere.
NXP is a supplier of high performance and standard semiconductor devices with a dominant market share in the vast majority of its product segments. One of the key growth drivers for NXP is an emerging technology that enables payments to be made via smart phones. Because this is a new technology, however, integration into mobile phones has been choppy and concerns about the ramp-up of this product, combined with overall economic weakness, have been weighing heavily on the stock. We see a great deal of value in its shares at current levels, however, and expect sales to pick up when the economy improves and even more so if the company's differentiated payment technology takes root and becomes widespread within the mobile phone industry.
On the positive side, our Consumer Discretionary holdings outperformed relative to the benchmark, on both strong stock selection and overweight positions. Brinker International, the operator of Chili's Restaurants, Discovery Communications, and Comcast performed well. We sold Brinker during the period, but continue to have meaningful positions in both Discovery and Comcast.
Discovery Communications is, in our view, a very well run pure-play cable network with a strong international presence. The company owns a number of cable TV channels including Discovery Channel, TLC and Animal Planet. We continue to see value in the stock and expect further upside as the company benefits from increased adoption of paid television internationally and makes strides in improving its network ratings and monetization domestically.
Comcast closed the NBC Universal deal this period, which should be self-funding from a cash flow perspective going forward. The rest of the business also continues to perform well, generating significant free cash flow which the company is redeploying to shareholders via dividends and buybacks.
10
Beyond our Consumer Discretionary holdings, strong stock selection led to outperformance in the Consumer Staples, Financials and Health Care sectors as well. Although we underperformed the index, we were able to add value in seven of 10 sectors.
As we enter the remainder of the year, equities appear attractive to us, although we expect the market may continue to be extremely volatile as long as macroeconomic news continues to drive investor behavior. We believe our valuation discipline allows us to use volatility to our advantage, however, as we work to purchase sound companies with strong growth prospects at depressed levels.
While we choose each holding based on its individual fundamentals, we are also mindful of how the Fund comes together as a whole. We therefore pay close attention to how holdings correlate with each other in order to create a portfolio of stocks with what we consider an optimal risk/reward balance. At this time, we believe we have a well-diversified portfolio with both cyclical and counter-cyclical exposure and believe that our rigorous bottom-up stock selection process should work in favor of our shareholders over time.
Sincerely,
Tim Creedon and David Levine
Portfolio Co-Managers
Because the Fund is concentrated in a small number of stocks, it may be substantially overweighted or underweighted in certain economic sectors at any given time. Therefore its performance is likely to be disproportionately affected by the factors influencing those sectors and may suffer if certain economic sectors it emphasizes do not perform as expected. The risks associated with these investments are set forth in the prospectus and statement of additional information.
Small- and mid-capitalization stocks are more vulnerable to financial risks and other risks than stocks of larger companies. They also trade less frequently and in lower volume than larger company stocks, so their market prices tend to be more volatile. Large-cap stocks are subject to all the risks of stock market investing, including the risk that they may lose value.
The composition, industries and holdings of the Fund are subject to change.
11
Focus Fund (Unaudited)
TICKER SYMBOLS |
Investor Class | NBSSX | ||
Trust Class | NBFCX | ||
Advisor Class | NBFAX | ||
Institutional Class | NFALX | ||
Class A | NFAAX | ||
Class C | NFACX |
SECTOR ALLOCATION |
(as a % of Total Investments) | |||||
Consumer Discretionary | 17.2 | % | |||
Consumer Staples | 7.8 | ||||
Energy | 12.1 | ||||
Financials | 14.0 | ||||
Health Care | 12.1 | ||||
Industrials | 9.8 | ||||
Information Technology | 16.1 | ||||
Materials | 4.5 | ||||
Utilities | 3.8 | ||||
Short-Term Investments | 2.6 | ||||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS2,8 |
Average Annual Total Return Ended 08/31/2011 | |||||||||||||||||||||
Inception Date | 1 Year | 5 Years | 10 Years | Life of Fund | |||||||||||||||||
At NAV | |||||||||||||||||||||
Investor Class | 10/19/1955 | 17.61 | % | –1.40 | % | 1.01 | % | 10.09 | % | ||||||||||||
Trust Class4 | 08/30/1993 | 17.39 | % | –1.61 | % | 0.81 | % | 10.10 | % | ||||||||||||
Advisor Class4 | 09/03/1996 | 17.20 | % | –1.83 | % | 0.60 | % | 10.05 | % | ||||||||||||
Institutional Class21 | 06/21/2010 | 17.85 | % | –1.35 | % | 1.03 | % | 10.10 | % | ||||||||||||
Class A24 | 06/21/2010 | 17.43 | % | –1.43 | % | 0.99 | % | 10.09 | % | ||||||||||||
Class C24 | 06/21/2010 | 16.62 | % | –1.61 | % | 0.90 | % | 10.07 | % | ||||||||||||
With Sales Charge | |||||||||||||||||||||
Class A24 | 10.64 | % | –2.59 | % | 0.40 | % | 9.98 | % | |||||||||||||
Class C24 | 15.62 | % | –1.61 | % | 0.90 | % | 10.07 | % | |||||||||||||
Index | |||||||||||||||||||||
S&P 500 Index1,18 | 18.50 | % | 0.78 | % | 2.70 | % | 9.67 | % |
Performance data quoted represent past performance and do not indicate future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Results are shown on a "total return" basis and include reinvestment of all income dividends and distributions.
Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2010 were 0.98%, 1.19%, 1.43%, 0.80%, 1.16% and 1.91% for Investor Class, Trust Class, Advisor Class, Institutional Class, Class A and Class C shares, respectively (prior to any fee waivers and/or expense reimbursements, if any). The expense ratios net of waivers and/or reimbursements were 0.75%, 1.11% and 1.86% for Institutional Class, Class A and Class C shares, respectively. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through August 31, 2021 for Advisor Class shares and August 31, 2014 for Institutional Class, Class A and Class C shares.
Total 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.
The results shown in the table do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares.
12
Focus Fund (Unaudited)
COMPARISON OF A $10,000 INVESTMENT |
This graph shows the change in value of a hypothetical $10,000 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 Investor 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. All results include the reinvestment of income dividends and distributions. The results shown in the graph do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
13
Genesis Fund Commentary (Unaudited)
Neuberger Berman Genesis Fund Investor Class posted a 29.65% total return for the fiscal year ended August 31, 2011, outperforming its benchmark, the Russell 2000® Index, which provided a 22.19% return for the period. (Performance for all share classes is provided in the table immediately following this letter.)
There was a dramatic shift in terms of the stock market's performance during the fiscal year. Over the first eight months of the reporting period, the market rose sharply and more volatile/high beta stocks (whose performance is closely tied to overall market results) typically outperformed higher quality/less speculative issues (companies with higher than average profitability, less financial leverage and which are less cyclical). However, we saw a nearly complete reversal of this trend during the last four months of the period, as investor risk appetite was largely replaced with risk aversion. Against this backdrop, higher quality companies generally performed better than their higher beta counterparts.
This changing environment demonstrated what we feel has been a key attribute for the Fund. While the Fund lagged its benchmark during the market's sharp ascent, it outperformed its benchmark when the market faltered. This is consistent with what we've seen in the past, and it resulted in the Fund's strong absolute and relative performance during the fiscal year.
Stock selection was the main driver of the Fund's outperformance. Sector positioning was also beneficial, albeit to a lesser extent. The Fund's holdings and longtime overweight in the Energy sector added significant value during the period. In particular, CARBO Ceramics, Cabot Oil & Gas and Oceaneering International posted very strong results. These three companies, as well as other Energy companies held within the portfolio, benefited from rising oil prices and/or increased drilling activity.
Other notable standouts were Consumer Staples company Church & Dwight and Health Care firm Dionex. Church & Dwight markets a diverse array of household and personal care items, including its Arm & Hammer brand products. The company's stock rose sharply as its earnings surpassed expectations and it continued to generate strong free cash flow. Dionex manufactures liquid chromatography systems that are used to analyze the composition and quality of substances for biopharmaceutical, environmental and industrial customers. During the reporting period, Dionex agreed to be acquired by Thermo Fisher Scientific at a significant premium and we sold the position.
The two largest detractors from performance were for-profit education companies Capella Education and Strayer Education. These Consumer Discretionary stocks saw their stock prices fall sharply given ongoing concerns that enrollment rates would decline and that expenses would rise. While we feel these are the best-in-class companies within the for-profit education industry, we pared our exposures given the uncertainties about future revenue growth, and eliminated the Capella position after the reporting period.
Several holdings within the Financial sector, including Greenhill & Co. and Westamerica Bancorp, were also detrimental to Fund performance. Greenhill & Co.'s stock fell as its earnings declined given the tepid merger and acquisition environment. We pared the position during the period and sold out entirely in September 2011. Westamerica faltered along with the overall banking industry during the reporting period. However, we remain positive on Westamerica given its strong capital position and its historically solid track record. We also feel that the company could be a beneficiary of anticipated consolidation in the banking industry as weaker competitors get absorbed by best-in-class operators like Westamerica.
In our last report to shareholders, we stated our belief that "a number of factors could result in below average gross domestic product (GDP) growth in the coming years." Recent developments have been consistent with our view, as economic growth has moderated in recent months. Another issue that could impact the markets and investor sentiment is the escalating European debt crisis and its potential impact on the U.S. financial system. We feel the portfolio is well-positioned given the uncertainties that exist today. We continue to manage a diversified portfolio of what we consider high quality companies with proven track records of generating strong results in various economic and market environments. The portfolio is also balanced—including relatively defensive companies that we believe could hold up relatively well should the market continue
14
to falter, as well as certain cyclical companies, such as those in the energy and agriculture industries, that could benefit should global growth strengthen more than is currently anticipated.
Sincerely,
Judith M. Vale and Robert D'Alelio
Portfolio Co-Managers
The risks involved in seeking capital appreciation from investments primarily in companies with small market capitalization are set forth in the prospectus and statement of additional information.
Small- and mid-capitalization stocks are more vulnerable to financial risks and other risks than stocks of larger companies. They also trade less frequently and in lower volume than larger company stocks, so their market prices tend to be more volatile.
The composition, industries and holdings of the Fund are subject to change.
15
Genesis Fund (Unaudited)
TICKER SYMBOLS |
Investor Class | NBGNX | ||
Trust Class | NBGEX | ||
Advisor Class | NBGAX | ||
Institutional Class | NBGIX |
SECTOR ALLOCATION |
(as a % of Total Investments) | |||||
Consumer Discretionary | 6.4 | % | |||
Consumer Staples | 7.1 | ||||
Energy | 15.4 | ||||
Financials | 7.7 | ||||
Health Care | 12.7 | ||||
Industrials | 18.5 | ||||
Information Technology | 10.9 | ||||
Materials | 11.9 | ||||
Utilities | 3.2 | ||||
Short-Term Investments | 6.2 | ||||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS2 |
Average Annual Total Return Ended 08/31/2011 | |||||||||||||||||||||
Inception Date | 1 Year | 5 Years | 10 Years | Life of Fund | |||||||||||||||||
Investor Class | 09/27/1988 | 29.65 | % | 6.21 | % | 10.01 | % | 12.41 | % | ||||||||||||
Trust Class4 | 08/26/1993 | 29.56 | % | 6.17 | % | 9.97 | % | 12.40 | % | ||||||||||||
Advisor Class4 | 04/02/1997 | 29.23 | % | 5.90 | % | 9.69 | % | 12.21 | % | ||||||||||||
Institutional Class6 | 07/01/1999 | 29.87 | % | 6.45 | % | 10.25 | % | 12.55 | % | ||||||||||||
Russell 2000® Index1,18 | 22.19 | % | 1.53 | % | 5.85 | % | 8.79 | % |
Performance data quoted represent past performance and do not indicate future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Results are shown on a "total return" basis and include reinvestment of all income dividends and distributions.
Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2010 were 1.06%, 1.12%, 1.38% and 0.87% for Investor Class, Trust Class, Advisor Class and Institutional Class shares, respectively (prior to any fee waivers and/or expense reimbursements, if any). The expense ratio net of waivers and reimbursements was 0.85% for Institutional Class shares. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through August 31, 2021 for Institutional Class and Advisor Class shares and through August 31, 2014 for Trust Class shares.
COMPARISON OF A $10,000 INVESTMENT |
This graph shows the change in value of a hypothetical $10,000 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 Investor 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 above). 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. All results include the reinvestment of income dividends and distributions. The results shown in the table and the graph do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
16
Global Equity Fund Commentary (Unaudited)
During the two-month period from its inception on June 30, 2011 through August 31, 2011, Neuberger Berman Global Equity Fund Institutional Class posted a –9.00% return, underperforming its benchmark, the MSCI World Index, which provided a –7.47% return for the same period. (Performance for all share classes is provided in the table immediately following this letter.)
In this, our first annual report letter, we would like to take the opportunity to explain our approach to portfolio management. The Global Equity Fund follows an investment discipline, Quality at a Reasonable Price (QuaRP), designed by our team, which includes a four-step process that applies initial screening, fundamental and strategic analysis, and financial analysis to help identify investment opportunities that others may miss. With the flexibility to invest across styles and market capitalization ranges, as well as outside the benchmark, we believe our approach enables us to build a differentiated portfolio with the potential to benefit our shareholders.
Looking more closely at our process, we first perform an initial screening of securities to ensure they have "quality" characteristics such as historically high return on invested capital and earnings per share, as well as low debt ratios.
Companies that pass the initial screening undergo intensive hands-on strategic analysis for a thorough understanding of both the companies and their business environments. We assess each company's strategy, management team quality, and commitment to driving shareholder value. As part of this assessment, we generally meet with company management, as well as numerous industry competitors, suppliers and customers.
Finally, using a proprietary discounted cash flow model and valuation criteria including price to cash flow and price to earnings metrics, we are able to identify the explicit price levels at which we would become a buyer—or seller—of a particular stock. In the end, we are able to build a diversified portfolio of between approximately 60 to 100 names that we believe will outperform the market over the long term.
During this abbreviated reporting period, representing tremendously negative investor sentiment and high market volatility, every sector of the MSCI World Index reported negative results. Worst hit were Financials, Industrials and Consumer Discretionary stocks. Performance of Consumer Staples, Utilities, and Information Technology stocks was relatively better. By country, Greece, Italy and Germany were the worst performing markets during a period in which all markets in the index, except New Zealand, lost value.
Within the portfolio, stock selection in the Materials, Telecommunication Services and Consumer Discretionary sectors was beneficial to performance on a relative basis, while Information Technology, Financials and Consumer Staples holdings disappointed. In terms of performance by country, holdings in Canada had the most positive effect on portfolio performance this period, followed by Germany. A zero allocation to Italy was also beneficial relative to the index. Our weaker markets this period included Korea, the U.S., and Japan.
Three of our top contributors to performance were New Gold, Silver Wheaton and Goldcorp—Canadian precious metals companies that benefited from strong operations and upward commodity price movement, especially as investors sought safe heavens from the equity market. Four U.S.-based companies—Apple, Cabot Oil & Gas, Waste Connections and McDonald's—were also top contributors.
Disappointments during the two-month period included Lincoln National, a U.S.-based financial services company. Lincoln is quite sensitive to movement in the capital markets, and has been adversely affected by prospects for continued low interest rates, poor equity returns, and higher hedging costs. Other underperformers included Alcatel-Lucent, Credit Suisse, Hyundai Mobis, Nippon Electric Glass, and Deutsche Boerse. Lincoln National, Credit Suisse and Nippon Electric Glass have been sold, but, generally speaking, we continue to believe in our longer-term value assessments of the companies we continue to own.
The current negative market sentiment has been driven by the European policy makers' delayed response to the EU sovereign debt crisis and signs of a potential U.S. economic slowdown. This has focused investor concerns on large
17
structural issues that developed markets' governments are struggling to address effectively. We believe that, sooner or later, fiscal deficits will be reduced—either via higher taxes or via lower spending—which we believe will act as a drag to economic growth in the U.S., Europe and Japan in particular. At the same time, emerging markets are currently experiencing higher levels of inflation, which could result in higher interest rates and/or slower economic growth. As a consequence, the portfolio remains underweighted relative to the benchmark in Japan, where public debt is high, and also in the weaker European economies which we believe will suffer the most fiscal retrenchment.
However, we believe that, following improvements to their balance sheets since the financial crisis of 2008, many companies with no apparent exposure exposed to these risks are in good shape. Operating profit margins are high, and since spending on fixed assets and working capital has been restrained, cash flow is strong. As a result, valuation levels appear compelling to us. Although risks remain, we have identified a few themes that we anticipate will drive stock selection in the portfolio going forward: 1) an end to increases in the costs of raw materials, which could help Materials and Consumer Staples companies; 2) growing demand in emerging markets as the middle class grows, which could benefit global multinational Consumer Staples and Consumer Discretionary firms; and 3) consumers and companies spending more on maintenance and ongoing expenses rather than new purchases, which may benefit Consumer Discretionary sub-sectors like Cable TV, or corporate software IT firms.
With the discipline of our QuaRP strategy and the benefit of insight into these secular themes, we believe we can deliver value for our shareholders over the longer term.
Sincerely,
Benjamin Segal and Saurin Shah
Portfolio Co-Managers
The risks involved in seeking capital appreciation from investments primarily in issuers who are based or who operate outside the United States are set forth in the prospectus and statement of additional information.
Investing in foreign securities involves greater risks than investing in securities of U.S. issuers, including currency fluctuations, changes in local economic and political conditions, and the need to operate in less regulated financial markets. These risks are typically heightened for investments in emerging markets.
Investing in the stocks of even the largest companies involves all the risks of stock market investing, including the risk that they may lose value due to overall market or economic conditions.
The composition, industries and holdings of the Fund are subject to change.
18
Global Equity Fund (Unaudited)
TICKER SYMBOLS |
Institutional Class | NGQIX | ||
Class A | NGQAX | ||
Class C | NVACX |
SECTOR ALLOCATION |
(as a % of Total Investments) | |||||
Consumer Discretionary | 10.5 | % | |||
Consumer Staples | 8.0 | ||||
Energy | 11.1 | ||||
Financials | 10.6 | ||||
Health Care | 11.2 | ||||
Industrials | 11.9 | ||||
Information Technology | 13.7 | ||||
Materials | 14.8 | ||||
Telecommunication Services | 6.1 | ||||
Short-Term Investments | 2.1 | ||||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS2,9 |
Inception Date | Cumulative Total Return Ended 08/31/2011 Life of Fund | ||||||||
At NAV | |||||||||
Institutional Class | 06/30/2011 | –9.00 | % | ||||||
Class A | 06/30/2011 | –9.10 | % | ||||||
Class C | 06/30/2011 | –9.20 | % | ||||||
With Sales Charge | |||||||||
Class A | –14.33 | % | |||||||
Class C | –10.11 | % | |||||||
Index | |||||||||
MSCI World Index1,18 | –7.47 | % |
Performance data quoted represent past performance and do not indicate future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Results are shown on a "total return" basis and include reinvestment of all income dividends and distributions.
Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
As stated in the Fund's most recent prospectus, the estimated total annual operating expense ratios for fiscal year 2011 were 1.42%, 1.78% and 2.53% for Institutional Class, Class A and Class C shares, respectively (prior to any fee waivers and/or expense reimbursements, if any). The estimated expense ratios net of waivers and/or reimbursements were 1.15%, 1.51% and 2.26% for Institutional Class, Class A and Class C shares, respectively. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through August 31, 2014 for Institutional Class, Class A and Class C shares.
Total 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.
The results shown in the table do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares.
19
Global Equity Fund (Unaudited)
COMPARISON OF A $1,000,000 INVESTMENT |
(000's 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. All results include the reinvestment of income dividends and distributions. The results shown in the graph do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
20
Global Thematic Opportunities Fund Commentary (Unaudited)
During the period from its inception on June 30, 2011 through August 31, 2011, Neuberger Berman Global Thematic Opportunities Fund Institutional Class provided a –5.60% return, outperforming its benchmark, the MSCI All Country World Index (ACWI), which delivered a –7.56% return during the period. (Performance for all share classes is provided in the table immediately following this letter.)
Coming off of a nine-month rally during the full fiscal year, global equity markets stumbled in summer 2011 as fears of a double-dip recession were reignited. A weakened economic outlook for the U.S. was combined with heightened concerns over the serious debt issues facing Greece and Europe and their broader potential consequences. Interest rate increases in China, India and other several emerging markets nations aimed at controlling inflation implied that rapid growth in those markets could come to an abrupt end as well. As headwinds to the global economy appeared to increase, we saw investors grow more conservative, moving down the risk spectrum, out of emerging markets, and from equities to bonds.
The Fund is designed to invest along longer-term themes in which we expect above-average growth driven by structural changes in the global economy. This period, themes included being "long what China is short," the strong emerging markets consumer, being on the right side of inflation worldwide, and demand for ever-increasing agricultural yields, among others. Our managers travel extensively, going to where the investments are for a deep, hands-on understanding of the companies, economies, and industries in which we invest. Compared with the MSCI ACWI Index, we are currently underweighted in the U.S., Europe and Japan, and overweighted in emerging markets and Canada, based on our view of where the best opportunities exist.
During the abbreviated reporting period, even though investors generally shied away from emerging markets equities, a number of our top contributors came from our emerging markets consumer theme. Companies like Ace Hardware Indonesia, which serves as a combination of a Bed, Bath and Beyond and Home Depot for Indonesian consumers, and Philip Morris International saw consistent demand. Las Vegas Sands, whose operations in Macao and Singapore are quite profitable, was another top contributor, as were two auto-related names. Hong Kong's Dah Chong Hong Holdings has benefited from stellar auto sales in China. The company is the exclusive distributor of Bentleys and also has a large contract with Isuzu. India's Mahindra & Mahindra, a distributor of sport utility vehicles and tractors, was also strong, benefiting from demand stemming from generally poor road conditions.
As part of our inflation theme, we have a higher tilt toward gold than the index. Stocks closely tied to gold and other precious metals commodities holdings were a big positive for the portfolio this period, as investors sought a safe haven against a weaker dollar, fears about U.S. debt, and market volatility. Agnico-Eagle Mines and Goldcorp benefited as gold prices increased, and Silver Wheaton was also a top contributor.
Stocks within our agriculture theme underperformed over the past two months. For example, China's First Tractor was our largest detractor this period. However, we remain bullish about the sector for the longer term and are willing to be patient. As wages and quality of life improve in the emerging markets, and particularly in China, the increased demand for dietary proteins is driving a greater need for grain for feed.
All America Latina Logistica also disappointed as risk-averse investors avoided emerging markets. We continue to like this Brazilian infrastructure company, viewing it as part of the solution to helping increase Brazil's ability to export goods to Asia and other regions.
The Energy sector contained several detractors for the period. Energy names are part of our "long what China is short" theme. Coal holdings including Indonesia's PT Adaro Energy and Alpha Natural Resources, a U.S. holding, disappointed as emerging markets governments increased interest rates to manage growth and relieve inflationary pressures. Investors worried that this activity could cool the growing recent demand for products such as coal. We remain bullish for the long term on both thermal and metallurgical coal and anticipate using any temporary price declines as a buying opportunity.
One other disappointment this period was the asset manager Invesco, part of our "money in motion" theme. Investors moved money from equities to bonds during this period's market volatility, which are lower margin products for Invesco.
21
Longer term, however, we anticipate that investors who want to keep up with inflation to re-enter the equity market, particularly in high dividend areas, out of frustration for the current low yields of bonds.
Looking ahead, we believe that U.S. economic growth will be relatively slow in the coming months, but that we will see much more attractive economic growth in other parts of the world. Our goal is to find companies, either U.S.-based or foreign, that we believe are best positioned to take advantage of that global growth. We plan to apply a rigorous investment discipline as we seek investment candidates with what we would view as great growth stories, trading at reasonable valuations. We believe we can to identify "under the radar" local companies, multinationals, and strong niche players positioned to benefit from structural global themes that will serve our shareholders well over time.
Sincerely,
Anthony Gleason, Sandy Pomeroy, William Hunter and Richard Levine
Portfolio Co-Managers
The risks involved in seeking capital appreciation from investments primarily in issuers who are based or who operate outside the United States are set forth in the prospectus and statement of additional information.
Investing in foreign securities involves greater risks than investing in securities of U.S. issuers, including currency fluctuations, changes in local economic and political conditions, and the need to operate in less regulated financial markets. These risks are typically heightened for investments in emerging markets.
To the extent that the Fund emphasizes small-, mid- or large-cap stocks, it takes on the associated risks. At times, large-cap stocks may lag other types of stocks in performance, which could cause a fund holding those stocks to perform worse than certain other funds. Small- and mid-capitalization stocks are more vulnerable to financial risks and other risks than stocks of larger companies. They also trade less frequently and in lower volume than larger company stocks, so their market prices tend to be more volatile.
The composition, industries and holdings of the Fund are subject to change.
22
Global Thematic Opportunities Fund (Unaudited)
TICKER SYMBOLS |
Institutional Class | NGHIX | ||
Class A | NGHAX | ||
Class C | NGHCX |
SECTOR ALLOCATION |
(as a % of Total Investments) | |||||
Consumer Discretionary | 13.3 | % | |||
Consumer Staples | 8.2 | ||||
Energy | 17.3 | ||||
Financials | 8.3 | ||||
Health Care | 1.8 | ||||
Industrials | 15.6 | ||||
Information Technology | 4.1 | ||||
Materials | 12.4 | ||||
Telecommunication Services | 1.7 | ||||
Utilities | 3.4 | ||||
Short-Term Investments | 13.9 | ||||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS2 |
Inception Date | Cumulative Total Return Ended 08/31/2011 Life of Fund | ||||||||
At NAV | |||||||||
Institutional Class | 06/30/2011 | –5.60 | % | ||||||
Class A | 06/30/2011 | –5.60 | % | ||||||
Class C | 06/30/2011 | –5.80 | % | ||||||
With Sales Charge | |||||||||
Class A | –11.03 | % | |||||||
Class C | –6.74 | % | |||||||
Index | |||||||||
MSCI All Country World Index1,18 | –7.56 | % |
Performance data quoted represent past performance and do not indicate future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Results are shown on a "total return" basis and include reinvestment of all income dividends and distributions.
Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
As stated in the Fund's most recent prospectus, the estimated total annual operating expense ratios for fiscal year 2011 were 1.56%, 1.92% and 2.67% for Institutional Class, Class A and Class C shares, respectively (prior to any fee waivers and/or expense reimbursements, if any). The estimated expense ratios net of waivers and/or reimbursements were 1.25%, 1.61% and 2.36% for Institutional Class, Class A and Class C shares, respectively. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through August 31, 2014 for Institutional Class, Class A and Class C shares.
Total 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.
The results shown in the table do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares.
23
Global Thematic Opportunities Fund (Unaudited)
COMPARISON OF A $1,000,000 INVESTMENT |
(000's 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. All results include the reinvestment of income dividends and distributions. The results shown in the graph do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
24
Guardian Fund Commentary (Unaudited)
Neuberger Berman Guardian Fund Investor Class generated a 21.35% total return for the fiscal year ended August 31, 2011, outperforming its benchmark, the S&P 500 Index, which provided an 18.50% return for the period. (Performance for all share classes is provided in the table immediately following this letter.)
The fiscal year started on the heels of a difficult spring and summer, when fears of a double-dip recession ran high. As economic data improved, the stock market enjoyed a strong three-quarter run. As we moved into summer 2011, however, the same set of fears seen last spring were replayed. With a second version of the Greek debt crisis, followed by a contentious U.S. debt ceiling debate, investors went from being encouraged by what seemed a healthy economy to experiencing worries over a potential recession.
Near the beginning of the fiscal year, we began adding to some of our favorite portfolio holdings, increasing weightings at what we believe were excellent valuations. The stock market rallied strongly, and, through the first half of fiscal year 2011, many of the names we had purchased at depressed levels last summer contributed positively to performance. Our performance is typically advantaged during slow-growth environments, as our quality focus identifies businesses that, in our opinion, can grow by gaining share in challenging economic times. For the first three quarters of this reporting period, high-quality businesses outperformed, and their stocks were revalued accordingly. As a result, the Fund enjoyed a performance advantage over the market index.
Ironically, the environment at the end the reporting period is similar to a year ago. Investor anxiety is high and many high-quality businesses are again priced for recession. Following the early summer's Greek debt negotiations, investors sold indiscriminately, and our holdings declined with the market regardless of the advantages we believe they offer. Although the Fund lost some of its "lead," it closed the fiscal year ahead of the benchmark.
In our opinion, when the market does not discriminate, this creates opportunity. We have now seen the good thrown out with the bad three times in three years. During the first two periods of weakness, we actively bought businesses that, in our opinion had previously been too richly valued as stocks. This time, we felt very well positioned already, and yet we also were able to buy two names that had been on our prospect list for years.
Google's disappointing earnings, driven by a decision to invest toward future growth, allowed us to introduce a position in the stock, and a merger deal that Wall Street did not like created an opening for us in Ecolab. Ecolab, which provides sanitizing and pest control products as well as food service equipment and food safety services to various industries, has, in our view, the predictability, strong free cash flow, and great secular growth opportunities associated with consumer staples companies, with the added advantage of controlling distribution.
Within the portfolio, several of our top contributors, including Altera, Schlumberger, and BG Group, performed well in the first three quarters of the period, but gave up some ground more recently. MasterCard was a benefit to the portfolio throughout. We bought MasterCard during last summer's weakness and amid concerns about prospective rules on debit processing fees. A year later, we believe the business remains very strong under a new CEO, and the stock performed well through the downturn. W.W. Grainger is another stock that held up well. Grainger reports sales numbers on a monthly basis, and as fears of recession have increased, stable, frequent revenue reports are helpful.
On the negative side, Hospira, a leading specialty injectable drug company, was our weakest performer. We view Hospira as part of the solution to controlling health care costs and consider it an attractive business for the longer term. The stock declined this period as the company's response to FDA-cited manufacturing issues has been slow and costly. The insurer Progressive was another disappointment. A defensive business, the stock was largely overlooked during the rally, even though it is managed well, growing, and taking market share. We like the company, and think its innovative new usage-based auto insurance product called Snapshot could prove to be disruptive to its competition. We bought SAIC for its fast-growing cyber security business, but as the balance of its government contract business faces a headwind on concerns about the budget, we sold the position before the end of the period.
25
There has been fear that market volatility and negative sentiment will spill into the economy, weakening spending. So far that hasn't happened. High frequency statistics—like credit card processing volumes, same store sales, and industrial distributors' revenues—remain relatively positive. However, statistics with more long-term significance reflect more uncertainty. In August, business and consumer sentiment and intentions surveys fell dramatically, and hints of companies delaying business decisions are evident in reduced goods orders for fall and holiday delivery, lower transportation utilization rates, and softening in electronic components orders.
Our view is that, as long as Europe doesn't deteriorate into a full crisis situation, the factors that could cause a recession are not present. While the debt problem creates uncertainty and is likely to lead to continued slow growth, we anticipate high-quality companies like those in the Fund to continue to be advantaged, and, barring a broader problem out of Europe, we are optimistic for the intermediate to long term.
Sincerely,
Arthur Moretti
Portfolio Manager
The risks involved in seeking capital appreciation from investments primarily in mid- to large-cap stocks are set forth in the prospectus and statement of additional information.
Mid-capitalization stocks are more vulnerable to financial risks and other risks than larger stocks. They also trade less frequently and in lower volume than larger company stocks, so their market prices tend to be more volatile. Large-cap stocks are subject to all the risks of stock market investing, including the risk that they may lose value due to overall market or economic conditions.
The composition, industries and holdings of the Fund are subject to change.
26
Guardian Fund (Unaudited)
TICKER SYMBOLS |
Investor Class | NGUAX | ||
Trust Class | NBGTX | ||
Advisor Class | NBGUX | ||
Institutional Class | NGDLX | ||
Class A | NGDAX | ||
Class C | NGDCX | ||
Class R3 | NGDRX |
SECTOR ALLOCATION |
(as a % of Total Investments) | |||||
Consumer Discretionary | 9.0 | % | |||
Consumer Staples | 8.9 | ||||
Energy | 14.9 | ||||
Financials | 11.4 | ||||
Health Care | 13.7 | ||||
Industrials | 14.1 | ||||
Information Technology | 21.4 | ||||
Materials | 5.5 | ||||
Short-Term Investments | 1.1 | ||||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS2,7,14 |
Average Annual Total Return Ended 08/31/2011 | |||||||||||||||||||||
Inception Date | 1 Year | 5 Years | 10 Years | Life of Fund | |||||||||||||||||
At NAV | |||||||||||||||||||||
Investor Class | 06/01/1950 | 21.35 | % | 1.89 | % | 3.93 | % | 10.92 | % | ||||||||||||
Trust Class4 | 08/03/1993 | 21.08 | % | 1.71 | % | 3.77 | % | 10.89 | % | ||||||||||||
Advisor Class4 | 09/03/1996 | 20.59 | % | 1.30 | % | 3.37 | % | 10.77 | % | ||||||||||||
Institutional Class21 | 05/27/2009 | 21.51 | % | 1.98 | % | 3.98 | % | 10.93 | % | ||||||||||||
Class A20 | 05/27/2009 | 21.06 | % | 1.80 | % | 3.89 | % | 10.92 | % | ||||||||||||
Class C20 | 05/27/2009 | 20.11 | % | 1.46 | % | 3.71 | % | 10.89 | % | ||||||||||||
Class R320 | 05/27/2009 | 20.79 | % | 1.69 | % | 3.83 | % | 10.91 | % | ||||||||||||
With Sales Charge | |||||||||||||||||||||
Class A20 | 14.11 | % | 0.60 | % | 3.27 | % | 10.81 | % | |||||||||||||
Class C20 | 19.11 | % | 1.46 | % | 3.71 | % | 10.89 | % | |||||||||||||
Index | |||||||||||||||||||||
S&P 500 Index1,18 | 18.50 | % | 0.78 | % | 2.70 | % | 10.77 | % |
Performance data quoted represent past performance and do not indicate future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Results are shown on a "total return" basis and include reinvestment of all income dividends and distributions.
Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2010 were 0.95%, 1.12%, 2.59%, 0.81%, 1.23%, 2.47% and 3.13% for Investor Class, Trust Class, Advisor Class, Institutional Class, Class A, Class C and Class R3 shares, respectively (prior to any fee waivers and/or expense reimbursements, if any). The expense ratios net of waivers and/or reimbursements were 1.50%, 0.75%, 1.11%, 1.86% and 1.36% for Advisor Class, Institutional Class, Class A, Class C and Class R3 shares, respectively. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through August 31, 2021 for Advisor Class shares and through August 31, 2014 for Trust Class, Institutional Class, Class A, Class C and Class R3 shares.
Total 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.
The results shown in the table do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares.
27
Guardian Fund (Unaudited)
COMPARISON OF A $10,000 INVESTMENT |
This graph shows the change in value of a hypothetical $10,000 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 Investor 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. All results include the reinvestment of income dividends and distributions. The results shown in the graph do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
28
International Fund Commentary (Unaudited)
Neuberger Berman International Fund Investor Class generated a 16.28% return for the fiscal year ended August 31, 2011, outperforming its benchmark, the MSCI EAFE® Index, which provided a 10.50% return. (Performance for all share classes is provided in the table immediately following this letter.)
Taken as a whole, the past fiscal year was positive but highly volatile for international developed market equities. While the MSCI EAFE Index closed the period in positive territory, it had been up by over 28% between September 2010 and April 2011.
Early in the reporting period, markets generally rebounded sharply off of mid-calendar-year 2010 lows as economic and company data surpassed expectations. Volatility increased after March 2011, as the near- and longer-term toll of the tsunami and nuclear disaster in Japan was evaluated by the market. From May through the August fiscal-year end, markets stumbled, as fears intensified around the scope of the European debt crisis and its potential broader effects. At the same time, global economic data appeared to weaken, driving investors away from riskier assets. From a regional perspective, the S&P 500 outperformed international markets for the fiscal year, with returns of over 18%. The MSCI Emerging Markets Index trailed the other two indexes noted above with a return of 9.4% during the period.
Cyclical sectors led index returns for most of the fiscal year, as the Materials, Energy and Consumer Discretionary sectors outperformed. The more traditionally defensive Health Care sector also outperformed. Weak-performing sectors included Utilities and Financials, and, to a lesser extent, Information Technology. From a country perspective, New Zealand, Norway, Australia and Ireland were among the strongest markets in the index. Greece, Italy, Israel and Spain were among the weakest.
The portfolio's outperformance versus the benchmark for the fiscal year was primarily the result of strong stock selection. Industrials, Materials and Telecommunication Services holdings contributed most to relative performance, and stock selection was additive in six of nine sectors. Within Energy, exploration and production companies—the majority of our exposure—were relatively weak. By country, the portfolio benefited most from an underweight relative to the MSCI EAFE Index in Japan, investments in a strong Canadian market, and stock selection in France. An underweight in Australia and overweights in Brazil and India were relative underperformers for the period.
In terms of individual holdings, Korean auto parts manufacturer Hyundai Mobis was the Fund's top contributor to performance for the fiscal year. Hyundai/Kia Motors benefited from reduced production by Japanese automakers. Conjecture that Japanese automakers might begin to diversify supply chains also boosted the stock. Daimler and Rolls Royce made a successful joint offer for another strong performer, Tognum, a manufacturer of off-highway high-speed engines for marine, industrial, power generation, and defense applications. Silver Wheaton, a Canadian silver streaming company, benefited from both operational successes and continued strength in silver prices, and Arkema, a specialty chemical company, did well on continued strong demand from Asia and new applications. We sold both Tognum and Arkema.
Detractors for the period included Heidelberg Cement, a global cement producer, which declined on general industry weakness and was eliminated from the portfolio. Credit Suisse, the leading Swiss investment and private bank, underperformed on weakness in its fixed income, currency and commodities trading business, a trend felt industry wide. Germany's Deutsche Boerse's performance was hurt by continued low interest rates, which negatively impacted custody businesses, and by lower securities trading volumes. Additionally, Eldorado Gold, a global gold miner, declined because of production delays and was sold.
Continued debt issues in Europe and associated government spending cuts, contractionary monetary policies in most emerging markets, and price increases in raw materials indicate a period of slowing economic growth, in our view. While a continued accommodative monetary policy in the U.S. may help to offset this, we have positioned the portfolio relatively defensively, focusing on companies that we believe are able to perform in tougher economic times.
In Europe, we think having a focus on global multinational companies exposed to the emerging markets will be beneficial as these companies should benefit from those markets' growing consumer base and rising disposable incomes. The Fund's
29
European weighting is roughly neutral compared to the benchmark although we have extremely limited exposure to the economies we consider among the weakest (i.e., Greece, Italy, Portugal and Spain). We remain underweighted in Japan, where we struggle to identify high-quality companies, and Australia, where we find valuations unattractive. Despite recent underperformance, we retain our exposure to emerging markets, with holdings in Brazil, Chile, China, India, Korea, South Africa and Turkey.
From a sector perspective, the Fund is modestly overweighted in Telecommunication Services. With data traffic doubling every 12-18 months and spectrum a finite resource, we expect telecom carriers to regain pricing power. We are also modestly overweighted in Materials, where we have exposure to agriculture-related and specialty chemical companies that we think have pricing power and relatively stable end markets. We also have holdings in precious metal miners, an industry where prices have risen due to economic uncertainty. One of our largest underweights continues to be in Financials. Valuations of financial stocks in developed markets are at historically inexpensive levels on the basis of price to net assets, but the outlook remains challenging. We continue to see a risk to profits from increasing regulation, and credit demand is generally sluggish across developed markets. Lastly, we continue to have a zero weighting in Utilities—which we classify as generally low growth, capital-intensive and regulated businesses.
Sincerely,
Benjamin Segal
Portfolio Manager
The risks involved in seeking capital appreciation from investments primarily in companies based outside the United States are set forth in the prospectus and statement of additional information.
Investing in foreign securities involves greater risks than investing in securities of U.S. issuers, including currency fluctuations, changes in local economic and political conditions, and the need to operate in less regulated financial markets. These risks are typically heightened for investments in emerging markets.
The composition, industries and holdings of the Fund are subject to change.
30
International Fund (Unaudited)
TICKER SYMBOLS |
Investor Class | NBISX | ||
Trust Class | NBITX | ||
Class A | NIRAX | ||
Class C | NIRCX |
SECTOR ALLOCATION |
(as a % of Total Investments) | |||||
Consumer Discretionary | 12.3 | % | |||
Consumer Staples | 9.8 | ||||
Energy | 7.7 | ||||
Financials | 14.2 | ||||
Health Care | 9.7 | ||||
Industrials | 14.4 | ||||
Information Technology | 6.4 | ||||
Materials | 15.1 | ||||
Telecommunication Services | 7.6 | ||||
Short-Term Investments | 2.8 | ||||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS7,2,15 |
Average Annual Total Return Ended 08/31/2011 | |||||||||||||||||||||
Inception Date | 1 Year | 5 Years | 10 Years | Life of Fund | |||||||||||||||||
At NAV | |||||||||||||||||||||
Investor Class | 06/15/1994 | 16.28 | % | –0.50 | % | 7.90 | % | 7.37 | % | ||||||||||||
Trust Class4 | 06/29/1998 | 15.91 | % | –0.63 | % | 7.96 | % | 7.55 | % | ||||||||||||
Class A26 | 12/20/2010 | 16.26 | % | –0.50 | % | 7.90 | % | 7.37 | % | ||||||||||||
Class C26 | 12/20/2010 | 15.63 | % | –0.61 | % | 7.84 | % | 7.33 | % | ||||||||||||
With Sales Charge | |||||||||||||||||||||
Class A26 | 9.57 | % | –1.67 | % | 7.26 | % | 7.00 | % | |||||||||||||
Class C26 | 14.63 | % | –0.61 | % | 7.84 | % | 7.33 | % | |||||||||||||
Index | |||||||||||||||||||||
MSCI EAFE® Index1,18 | 10.50 | % | –1.01 | % | 5.41 | % | 4.76 | % |
Performance data quoted represent past performance and do not indicate future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Results are shown on a "total return" basis and include reinvestment of all income dividends and distributions.
Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2010 were 1.43%, 1.53%,1.59% and 2.34% for Investor Class, Trust Class, Class A and Class C shares, respectively (prior to any fee waivers and/or expense reimbursements, if any).The expense ratios net of waivers and/or reimbursements were 1.42%, 1.53% and 2.28% for Investor Class, Class A and Class C shares, respectively. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through August 31, 2021 for Trust Class shares and through August 31, 2014 for Investor Class, Class A and Class C shares.
Total 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.
The results shown in the table do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares.
31
International Fund (Unaudited)
COMPARISON OF A $10,000 INVESTMENT |
This graph shows the change in value of a hypothetical $10,000 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 Investor 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. All results include the reinvestment of income dividends and distributions. The results shown in the graph do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
32
International Institutional Fund Commentary (Unaudited)
Neuberger Berman International Institutional Fund generated a 15.62% return for the fiscal year ended August 31, 2011, outperforming its benchmark, the MSCI EAFE® Index, which provided a 10.50% return.
Taken as a whole, the past fiscal year was positive but highly volatile for international developed market equities. While the MSCI EAFE Index closed the period in positive territory, it had been up by over 28% between September 2010 and April 2011.
Early in the reporting period, markets rebounded sharply off of mid-calendar-year 2010 lows as economic and company data surpassed expectations. Volatility increased after March 2011, as the near- and longer-term toll of the tsunami and nuclear disaster in Japan was evaluated by the market. From May through the August fiscal-year end, markets stumbled, as fears intensified around the scope of the European debt crisis and its potential broader effects. At the same time, global economic data appeared to weaken, driving investors away from riskier assets. From a regional perspective, the S&P 500 outperformed international markets for the fiscal year, with returns of over 18%. The MSCI Emerging Markets Index trailed the other two indexes noted above with a return of 9.4% during the period.
Cyclical sectors led index returns for most of the fiscal year, as the Materials, Energy and Consumer Discretionary sectors outperformed. The more traditionally defensive Health Care sector also outperformed. Weak-performing sectors included Utilities and Financials, and, to a lesser extent, Information Technology. From a country perspective, New Zealand, Norway, Australia and Ireland were among the strongest markets in the index. Greece, Italy, Israel and Spain were among the weakest.
The portfolio's outperformance versus the benchmark for the fiscal year was primarily the result of strong stock selection. Industrials, Materials and Telecommunication Services holdings contributed most to relative performance, and stock selection was additive in every sector except Energy. Within Energy, exploration and production companies—the majority of our exposure—were relatively weak. By country, the portfolio benefited most from an underweight relative to the MSCI EAFE Index in Japan, investments in a strong Canadian market, and stock selection in France. An underweight in Australia and overweights in Brazil and India hurt performance for the period.
In terms of individual holdings, Korean auto parts manufacturer Hyundai Mobis was the Fund's top contributor to performance for the fiscal year. Hyundai/Kia Motors benefited from reduced production by Japanese automakers. Conjecture that Japanese automakers might begin to diversify supply chains also boosted the stock. Daimler and Rolls Royce made a successful joint offer for another strong performer, Tognum, a manufacturer of off-highway high-speed engines for marine, industrial, power generation, and defense applications. Silver Wheaton, a Canadian silver streaming company, benefited from both operational successes and continued strength in silver prices, and Arkema, a specialty chemical company, did well on continued strong demand from Asia and new applications. We sold both Tognum and Arkema.
Detractors for the period included Heidelberg Cement, a global cement producer, which declined on general industry weakness and was eliminated from the portfolio. Credit Suisse, the leading Swiss investment and private bank, underperformed on weakness in its fixed income, currency and commodities trading business, a trend felt industry wide. Germany's Deutsche Boerse's performance was hurt by continued low interest rates, which negatively impacted custody businesses, and by lower securities trading volumes. Additionally, Eldorado Gold, a global gold miner, declined because of production delays and was sold.
Continued debt issues in Europe and associated government spending cuts, contractionary monetary policies in most emerging markets, and price increases in raw materials indicate, in our view, a period of slowing economic growth. While a continued accommodative monetary policy in the U.S. may help to offset this, we have positioned the portfolio relatively defensively, focusing on companies that we believe are able to perform in tougher economic times.
In Europe, we think having a focus on global multinational companies exposed to the emerging markets will be beneficial, as these companies should benefit from those markets' growing consumer base and rising disposable incomes. The Fund's European weighting is roughly neutral compared to the benchmark although we have extremely limited exposure to the
33
economies we consider among the weakest (i.e., Greece, Italy, Portugal, and Spain). We remain underweighted in Japan, where we struggle to identify high-quality companies, and Australia, where we find valuations unattractive. Despite recent underperformance, we retain our exposure to emerging markets, with holdings in Brazil, Chile, China, India, Korea, South Africa and Turkey.
From a sector perspective, the Fund is modestly overweighted in Telecommunication Services. With data traffic doubling every 12-18 months and spectrum a finite resource, we expect telecom carriers to regain pricing power. We are also modestly overweighted in Materials, where we have exposure to agriculture-related and specialty chemical companies that we think have pricing power and relatively stable end markets. We also have holdings in precious metal miners, an industry where prices have risen due to economic uncertainty. One of our largest underweights continues to be in Financials. Valuations of financial stocks in developed markets are at historically inexpensive levels on the basis of price to net assets, but the outlook remains challenging. We continue to see a risk to profits from increasing regulation, and credit demand is generally sluggish across developed markets. Lastly, we continue to have a zero weighting in Utilities—which we classify as generally low growth, capital-intensive and regulated businesses.
Sincerely,
Benjamin Segal
Portfolio Manager
The risks involved in seeking capital appreciation from investments primarily in companies based outside the United States are set forth in the prospectus and statement of additional information.
Investing in foreign securities involves greater risks than investing in securities of U.S. issuers, including currency fluctuations, changes in local economic and political conditions, and the need to operate in less regulated financial markets. These risks are typically heightened for investments in emerging markets.
The composition, industries and holdings of the Fund are subject to change.
34
International Institutional Fund (Unaudited)
TICKER SYMBOLS |
Institutional Class | NBIIX |
SECTOR ALLOCATION |
(as a % of Total Investments) | |||||
Consumer Discretionary | 12.2 | % | |||
Consumer Staples | 9.8 | ||||
Energy | 7.7 | ||||
Financials | 13.9 | ||||
Health Care | 9.7 | ||||
Industrials | 14.3 | ||||
Information Technology | 6.4 | ||||
Materials | 14.7 | ||||
Telecommunication Services | 7.6 | ||||
Short-Term Investments | 3.7 | ||||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS2,7 |
Average Annual Total Return Ended 08/31/2011 | |||||||||||||||||
Inception Date | 1 Year | 5 Years | Life of Fund | ||||||||||||||
Institutional Class | 06/17/2005 | 15.62 | % | –0.20 | % | 3.85 | % | ||||||||||
MSCI EAFE® Index1,18 | 10.50 | % | –1.01 | % | 3.76 | % |
Performance data quoted represent past performance and do not indicate future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Results are shown on a "total return" basis and include reinvestment of all income dividends and distributions.
Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
As stated in the Fund's most recent prospectus, the total annual operating expense ratio for fiscal year 2010 was 1.26% for Institutional Class shares (prior to any fee waivers and/or expense reimbursements, if any). The expense ratio net of waivers and/or reimbursements was 0.82% for Institutional Class shares. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through August 31, 2021 for Institutional Class shares.
COMPARISON OF A $1,000,000 INVESTMENT |
(000's 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 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. All results include the reinvestment of income dividends and distributions. The results shown in the table and the graph do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
35
International Large Cap Fund Commentary (Unaudited)
Neuberger Berman International Large Cap Fund Trust Class generated a 13.09% total return for the fiscal year ended August 31, 2011, outperforming its benchmark, the MSCI EAFE® Index, which provided a 10.50% return for the period. (Performance for all share classes is provided in the table immediately following this letter.)
Taken as a whole, the past fiscal year was positive but highly volatile for international developed market equities. While the MSCI EAFE Index closed the period in positive territory, it had been up by over 28% between September 2010 and April 2011.
Early in the reporting period, markets rebounded sharply off of mid-calendar-year 2010 lows as economic and company data surpassed expectations. Volatility increased after March 2011, as the near- and longer-term toll of the tsunami and nuclear disaster in Japan was evaluated. From May through the August fiscal-year end, markets stumbled, as fears intensified around the scope of the European debt crisis and its potential broader effects. At the same time, global economic data appeared to weaken, driving investors away from riskier assets. From a regional perspective, the S&P 500 outperformed international markets for the fiscal year, with returns of over 18%. The MSCI Emerging Markets Index trailed the other two indexes noted above with a return of 9.4% during the period.
Cyclical sectors led index returns for most of the fiscal year, as the Materials, Energy and Consumer Discretionary sectors outperformed. The more traditionally defensive Health Care sector also outperformed. Weak-performing sectors included Utilities and Financials, and, to a lesser extent, Information Technology. From a country perspective, New Zealand, Norway, Australia and Ireland were among the strongest markets in the index. Greece, Italy, Israel and Spain were among the weakest.
Strong stock selection within Industrials and Consumer Discretionary, along with a lack of exposure to Utilities, contributed most to outperformance versus the benchmark during the reporting period. Within Energy, exploration and production companies—the majority of our exposure—were relatively weak. That, along with an underweight in Consumer Staples, negatively impacted the Fund.
By country, the portfolio benefited most from an underweight in Japan and by exposure to Canada and stock selection in Germany. An overweight exposure to Brazil and the Netherlands and an underweight to Australia were detrimental to performance.
Among individual holdings, Korean auto parts manufacturer Hyundai Mobis was the Fund's top contributor to performance for the fiscal year. Hyundai/Kia Motors benefited from reduced production by Japanese automakers. Conjecture that Japanese automakers might begin to diversify supply chains also boosted the stock. Silver Wheaton, a Canadian silver streaming company, benefited from both operational successes and continued strength in silver prices. Daimler and Rolls Royce made a successful joint offer for another outperformer, Tognum, a manufacturer of off-highway high-speed engines for marine, industrial, power generation, and defense applications, which was sold. Sulzer, a Swiss diversified industrial company, was also a top contributor, when viewed in U.S. dollar terms, due to the strength of the Swiss franc.
Detractors for the period included Credit Suisse, the leading Swiss investment and private bank, which underperformed on weakness in its fixed income, currency and commodities trading business, a trend felt industry-wide. Heidelberg Cement, a global cement producer, declined on general industry weakness and was eliminated from the portfolio. HRT Participacoes em Petroleo, a Brazilian energy producer, was impacted by weakness in upstream energy companies as well as the Brazilian market, and Germany's Deutsche Boerse's performance was hurt by continued low interest rates, which negatively impacted custody businesses, and by lower securities trading volumes.
Continued debt issues in Europe and associated government spending cuts, contractionary monetary policies in most emerging markets, and price increases in raw materials indicate, in our view, a period of slowing economic growth. While a continued accommodative monetary policy in the U.S. may help to offset this, we have positioned the portfolio relatively defensively, focusing on companies that we believe are able to perform in tougher economic times.
36
In Europe, we think having a focus on global multinational companies exposed to the emerging markets will be beneficial as these companies should benefit from those markets' growing consumer base and rising disposable incomes. The Fund's European weighting is roughly neutral compared to the benchmark although we have extremely limited exposure to the economies we consider weakest (i.e., Greece, Ireland, Portugal and Spain). We remain underweighted in Japan, where we struggle to identify high-quality companies, and Australia, where we find valuations unattractive. Despite recent underperformance, we retain our exposure to emerging markets, with holdings in Brazil, Chile, China, Korea, South Africa and Malaysia.
From a sector perspective, the Fund is modestly overweighted in Telecommunication Services. With data traffic doubling every 12-18 months and spectrum a finite resource, we expect telecom carriers to regain pricing power. We are also modestly overweighted in Materials, where we have exposure to agriculture-related and specialty chemical companies that we think have pricing power and relatively stable end markets. We also have holdings in precious metal miners, an industry where prices have risen due to economic uncertainty. One of our largest underweights continues to be in Financials. Valuations of financial stocks in developed markets are at historically inexpensive levels on the basis of price to net assets, but the outlook remains challenging. We continue to see a risk to profits from increasing regulation, and credit demand is generally sluggish across developed markets. Lastly, we continue to have no exposure to Utilities—which we classify as generally low growth, capital-intensive and regulated businesses.
Sincerely,
Benjamin Segal
Portfolio Manager
The risks involved in seeking capital appreciation from investments primarily in companies based outside the United States are set forth in the prospectus and statement of additional information.
Investing in foreign securities involves greater risks than investing in securities of U.S. issuers, including currency fluctuations, changes in local economic and political conditions, and the need to operate in less regulated financial markets. These risks are typically heightened for investments in emerging markets.
Investing in the stocks of even the largest companies involves all the risks of stock market investing, including the risk that they may lose value due to overall market or economic conditions.
The composition, industries and holdings of the Fund are subject to change.
37
International Large Cap Fund (Unaudited)
TICKER SYMBOLS |
Trust Class | NILTX | ||
Institutional Class | NILIX | ||
Class A | NBNAX | ||
Class C | NBNCX | ||
Class R3 | NBNRX |
SECTOR ALLOCATION |
(as a % of Total Investments) | |||||
Consumer Discretionary | 11.8 | % | |||
Consumer Staples | 8.3 | ||||
Energy | 9.4 | ||||
Financials | 14.6 | ||||
Health Care | 8.6 | ||||
Industrials | 12.7 | ||||
Information Technology | 6.4 | ||||
Materials | 15.7 | ||||
Telecommunication Services | 9.6 | ||||
Short-Term Investments | 2.9 | ||||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS2,7 |
Average Annual Total Return Ended 08/31/2011 | |||||||||||||||||
Inception Date | 1 Year | 5 Years | Life of Fund | ||||||||||||||
At NAV | |||||||||||||||||
Trust Class | 08/01/2006 | 13.09 | % | 0.40 | % | 0.77 | % | ||||||||||
Institutional Class6 | 10/06/2006 | 13.39 | % | 0.73 | % | 1.10 | % | ||||||||||
Class A17 | 12/20/2007 | 13.06 | % | 0.40 | % | 0.76 | % | ||||||||||
Class C17 | 12/20/2007 | 12.19 | % | –0.16 | % | 0.21 | % | ||||||||||
Class R317 | 05/27/2009 | 12.71 | % | 0.26 | % | 0.63 | % | ||||||||||
With Sales Charge | |||||||||||||||||
Class A17 | 6.61 | % | –0.78 | % | –0.40 | % | |||||||||||
Class C17 | 11.19 | % | –0.16 | % | 0.21 | % | |||||||||||
Index | |||||||||||||||||
MSCI EAFE® Index1,18 | 10.50 | % | –1.01 | % | –0.46 | % |
Performance data quoted represent past performance and do not indicate future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Results are shown on a "total return" basis and include reinvestment of all income dividends and distributions.
Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2010 were 1.55%, 1.14%, 1.54%, 2.31% and 3.52% for Trust Class, Institutional Class, Class A, Class C and Class R3 shares, respectively (prior to any fee waivers and/or expense reimbursements, if any). The expense ratios net of waivers and/or reimbursements were 1.27%, 0.92%, 1.32%, 2.02% and 1.53% for Trust Class, Institutional Class, Class A, Class C and Class R3 shares, respectively. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through August 31, 2014 for Trust Class, Institutional Class, Class A, Class C and Class R3 shares.
Total 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.
The results shown in the table do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares.
38
International Large Cap Fund (Unaudited)
COMPARISON OF A $10,000 INVESTMENT |
This graph shows the change in value of a hypothetical $10,000 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 Trust 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. All results include the reinvestment of income dividends and distributions. The results shown in the graph do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
39
Intrinsic Value Fund Commentary (Unaudited)
Neuberger Berman Intrinsic Value Fund Institutional Class generated a 13.08% total return for the fiscal year ended August 31, 2011, underperforming its benchmark, the Russell 2000® Value Index, which provided a 16.86% return for the period. (Performance for all share classes is provided in the table immediately following this letter.)
Equity markets advanced during the majority of the reporting period. A rally that started in the fall of 2010 on improving economic conditions continued through the first quarter of 2011. Driven by solid sales and earnings growth, small caps continued their advance into April, surpassing their previous high in July 2007, as measured by the Russell 2000 Index.
Beginning in May, disappointing economic data triggered a sell-off in equities, with softness seen in growth, manufacturing, and employment figures. The downturn continued as sovereign debt concerns in Europe and delayed government action to raise the debt ceiling, along with the resulting downgrade in the credit rating of the U.S. government, took their toll on the economy. The dismal performance of Congress during the deficit debate combined with disappointing economic news significantly undermined investor confidence. Anxious investors reassessed their view of "riskier assets" like small caps and retreated to the perceived safer havens of defensive larger companies and fixed income investments.
Small caps are particularly sensitive to changes in economic outlooks as their revenues and profits are more levered to economic growth or contraction, and cyclical stocks have historically been more vulnerable than broader market indices in the start of a slowdown. The portfolio, which is overweighted in economically sensitive companies, was negatively impacted during the downturn. Against this backdrop of renewed concern for the health of the economic recovery, the portfolio's valuation, as measured by its discount to intrinsic value*, has become more attractive.
Stock selection and our overweight in Producer Durables companies contributed most to performance. Aerospace company Ladish, our top performer, was purchased at a 50% premium to its market price (and at our intrinsic value estimate) by Allegheny Technologies in late 2010.
The Health Care sector was also beneficial to performance. In first quarter of 2011, Cooper Companies was sold as it approached our intrinsic value estimate, and Beckman Coulter was acquired by Danaher at a price close to our intrinsic value estimate. We redeployed the proceeds into new and existing ideas.
Stock selection among Financial Services stocks were the biggest detractors from performance during the period. Lender Processing Services (LPS), the worst performer, is the leading provider of mortgage processing services. Shares suffered as regulatory uncertainty slowed foreclosure processing. Despite current challenges, LPS generates strong earnings and its customer base has grown. If, as we anticipate, regulatory certainty returns, we believe LPS should resume revenue and EPS growth. Corelogic, which provides property and mortgage information for most real estate transactions, also hurt performance as loan origination and real estate activity remain low, depressing margins. With a more normalized environment, the company's earnings power should increase in our estimation. Importantly, Corelogic recently retained an investment bank to explore strategic options that could enhance shareholder value.
Materials & Processing and Technology stocks also hurt performance. Chemtura, a specialty chemical company, underperformed. We remain positive about the firm due to its attractive niche businesses and well-respected CEO. Technology detractors include Intermec, which we sold in August, and Powerwave, a leading provider of antennas and base station equipment. Powerwave should benefit as Verizon and AT&T upgrade their networks to 4G capabilities.
During the final two months of the fiscal year, we exited a number of companies where we felt the risk/reward equation or franchise quality was no longer sufficiently compelling. Merger and acquisition activity continued to be a bright spot. We have suggested that our approach of "private equity" style analysis is well suited for small cap investing, and all the activity we witnessed during most of the fiscal year underscores our conviction. Despite daunting macroeconomic issues, there has recently been a meaningful acceleration of insider purchases and corporate share repurchase programs within our portfolio companies, demonstrating that executives have conviction in their shares.
40
Although the near-term economic outlook is uncertain, we believe the more pressing challenges to longer-term prosperity and market performance are the structural imbalances in our global economy. In our opinion, the U.S. needs meaningful progress on the Federal budget deficit. Overseas, we think authorities must engineer a transition to consumption-driven economies. In an environment with high levels of global indebtedness, we believe stock markets will likely experience volatile periods as the cost of policy mistakes or inaction will make debt loads appear unmanageable. Economic recoveries can happen against a backdrop of financial leverage; however, they take time and frustrate many who want a quick resolution to problems decades in the making.
These issues are not lost on investors and, we believe, account for the modest valuations of many large companies. In contrast, small companies trade like call options on the pace of the economic recovery. In the past, as the mood has darkened, valuations have quickly compressed; when optimism has returned, they have generally recovered in an equally dramatic fashion. The small cap asset class is not for the faint of heart and, more importantly, it is hard to effectively predict entry or exit points for investing in the asset class. Thus, we believe that clients should stay invested to the extent they can tolerate the swings in small-cap stocks. Remember that small cap investing brings both historically strong returns and, inevitably, volatility.
Sincerely,
Benjamin H. Nahum, James F. McAree and Amit Solomon
Portfolio Co-Managers
* Intrinsic value reflects the group's estimate of a company's value. There is no guarantee that any intrinsic values will be realized; security prices may decrease regardless of intrinsic values.
The risks involved in seeking capital appreciation from investments primarily in companies with small- and mid-cap stocks are set forth in the prospectus and statement of additional information.
Small- and mid-capitalization stocks are more vulnerable to financial risks and other risks than stocks of larger companies. They also trade less frequently and in lower volume than larger company stocks, so their market prices tend to be more volatile.
The composition, industries and holdings of the Fund are subject to change.
41
Intrinsic Value Fund (Unaudited)
TICKER SYMBOLS |
Institutional Class | NINLX | ||
Class A | NINAX | ||
Class C | NINCX |
SECTOR ALLOCATION |
(as a % of Total Investments) | |||||
Consumer Discretionary | 10.6 | % | |||
Consumer Staples | 2.0 | ||||
Energy | 5.4 | ||||
Financial Services | 11.3 | ||||
Health Care | 5.9 | ||||
Materials & Processing | 6.3 | ||||
Producer Durables | 25.4 | ||||
Technology | 26.7 | ||||
Utilities | 2.4 | ||||
Short-Term Investments | 4.0 | ||||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS2 |
Average Annual Total Return Ended 08/31/2011 | |||||||||||||||||||
Inception Date | 1 Year | 5 Year | 10 Year | Life of Fund | |||||||||||||||
At NAV | |||||||||||||||||||
Institutional Class23 | 05/10/2010 | 13.08 | % | 4.37 | % | 7.47 | % | 10.38 | % | ||||||||||
Class A23 | 05/10/2010 | 12.74 | % | 4.28 | % | 7.43 | % | 10.35 | % | ||||||||||
Class C23 | 05/10/2010 | 11.91 | % | 4.08 | % | 7.32 | % | 10.27 | % | ||||||||||
With Sales Charge | |||||||||||||||||||
Class A23 | 6.29 | % | 3.05 | % | 6.79 | % | 9.89 | % | |||||||||||
Class C23 | 10.91 | % | 4.08 | % | 7.32 | % | 10.27 | % | |||||||||||
Index | |||||||||||||||||||
Russell 2000® Value Index1,18 | 16.86 | % | –0.62 | % | 6.46 | % | 7.15 | % | |||||||||||
Russell 2000® Index1,18 | 22.19 | % | 1.53 | % | 5.85 | % | 5.72 | % |
The inception date for Neuberger Berman Intrinsic Value Fund Class A, Class C and Institutional Class shares is May 10, 2010. Performance prior to that date is that of the Fund's predecessor, the DJG Small Cap Value Fund L.P., an unregistered limited partnership ("DJG Fund"); DJG Fund was the successor to The DJG Small Cap Value Fund, an unregistered commingled investment account ("DJG Account"), which had similar investment goals, strategies, and portfolio management team. See footnote 23 for information about the effects of the different fees paid by each class.
Performance data quoted represent past performance and do not indicate future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Results are shown on a "total return" basis and include reinvestment of all income dividends and distributions.
Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2010 were 1.24%, 1.60% and 2.35% for Institutional Class, Class A and Class C shares, respectively (prior to any fee waivers and/or expense reimbursements, if any). The expense ratios net of waivers and/or reimbursements were 1.00%, 1.36% and 2.11% Institutional Class, Class A and Class C shares, respectively. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through August 31, 2014 for Institutional Class, Class A and Class C shares.
Total 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.
The results shown in the table do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares.
42
Intrinsic Value Fund (Unaudited)
COMPARISON OF A $1,000,000 INVESTMENT27 |
(000's 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. All results include the reinvestment of income dividends and distributions. The results shown in the graph do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
43
Large Cap Disciplined Growth Fund Commentary (Unaudited)
Neuberger Berman Large Cap Disciplined Growth Fund Investor Class generated a 19.44% total return for the fiscal year ended August 31, 2011, but underperformed its benchmark, the Russell 1000® Growth Index, which provided a 23.96% return for the period. (Performance for all share classes is provided in the table immediately following this letter.)
Through the second half of the fiscal year, both market and economic conditions deteriorated significantly. At the end of calendar year 2010, GDP growth estimates for the first half of 2011 were around 2%, and growth was expected to accelerate to closer to 4% by the second half of the year. In recent months, however, actual growth has been significantly below expectations and estimates for the remainder of the year have been lowered considerably.
Recent employment data suggest a worsening in an already low job growth recovery. The Federal Reserve's experimental, second round of quantitative easing, or QE2, aimed at stimulating growth did not work as well as expected. The government's stimulus plan, which is now effectively rolling off, did not have the expected impact on jobs, and the lack of cooperation between the U.S. Congress and the Obama administration has been a significant drag on investor sentiment. The impasse and disturbing rhetoric surrounding debt-ceiling negotiations not only damaged sentiment but also materially impacted growth by pushing off hiring, spending, and business expansion decisions.
The European debt situation has clearly worsened as well, and while austerity measures are necessary, economic growth is also important to overcoming deficits. Without government spending, such growth may be constrained. Given that the European economy is about 10% larger than the U.S. economy, and, with roughly 50% of U.S. companies' revenues generated outside the U.S., weakness in Europe is both a global and a local concern. China raised interest rates this period in an effort to contain inflation, which also heightened concerns about global growth. With slowing growth and a number of conceivable risks of the situation in Europe—with possible consequences ranging from a split in the European Union to a very large bailout—investors have plenty of reasons to be concerned, which is something the market has clearly demonstrated in recent months.
Over the course of the full fiscal year, the portfolio benefited most from strong stock selection in the Consumer Discretionary sector, with Amazon and Starbucks among the standout performers. An overweight in the sector versus the benchmark was also additive on a relative basis, as the sector was among the strongest within the Russell 1000 Growth Index.
Amazon continues to expand its retail operations and gain market share. Because of its comprehensive offering and competitive pricing, consumers often shop with Amazon first. This very positive trend limits the company's online advertising expenses and increases the likelihood of a sale. Amazon continues to reinvest in distribution facilities and international expansion. The company is also investing in its cloud computing business, a huge growth driver that they expect will become as significant as their retail business.
Starbucks is something of a turnaround story. The company dialed back from an overly aggressive domestic expansion strategy to focus instead on new products, like Via (a ready-brew coffee), cold beverages, and breakfast sandwiches, in addition to a continued emphasis on high growth international markets like Japan and China.
The portfolio underperformed the index in Energy due to an underweight and several individual disappointments, and also underperformed the index in Information Technology (IT) and Health Care. In IT, Juniper Networks disappointed as its telecommunications customers focused spending on 4G data networks and as a new product, QFabric, launched more slowly than expected. We continue to own the stock. Hewlett-Packard, another detractor, declined as the company faced uncertainty in the wake of the departure of its CEO, Mark Hurd. We have exited the stock.
Within Health Care, Illumina, a maker of genetic sequencing equipment, declined on fears over cuts to the National Institutes of Health budget. We continue to own the stock, having stress-tested it under a variety of scenarios, and on the potential of a new diagnostic product called MiSeq. In our view Stryker, a manufacturer of orthopedics, faces more difficulties, and was sold.
44
In early May, we began shifting the portfolio from a slightly pro-cyclical position to a more defensive posture, expecting global headwinds to extend a period of subpar economic growth. We've reduced our exposure to Energy, Materials, IT and Industrials, and added to Consumer Staples and Health Care, using our bottom-up approach to replace holdings that rely on economic activity for growth with companies that we believe have the ability to grow through any environment. We're now at a point where we feel the portfolio is much better positioned for a market that could continue to be difficult. Still, we are contemplating further moves as we watch the global economic and market environment evolve.
Sincerely,
Daniel S. Rosenblatt, John J. Barker, Daniel J. Fletcher and Lawrence K. Fisher
Portfolio Co-Managers
The risks involved in seeking capital appreciation from investments primarily in companies with large capitalizations are set forth in the prospectus and statement of additional information.
Investing in the stocks of even the largest companies involves all the risks of stock market investing, including the risk that they may lose value due to overall market or economic conditions.
The composition, industries and holdings of the Fund are subject to change.
45
Large Cap Disciplined Growth Fund (Unaudited)
TICKER SYMBOLS |
Investor Class | NBCIX | ||
Institutional Class | NLDLX | ||
Class A | NLDAX | ||
Class C | NLDCX | ||
Class R3 | NLDRX |
SECTOR ALLOCATION |
(as a % of Total Investments) | |||||
Consumer Discretionary | 17.9 | % | |||
Consumer Staples | 15.4 | ||||
Energy | 8.2 | ||||
Financials | 1.6 | ||||
Health Care | 12.6 | ||||
Industrials | 9.9 | ||||
Information Technology | 23.8 | ||||
Materials | 5.5 | ||||
Utilities | 1.0 | ||||
Short-Term Investments | 4.0 | ||||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS2,13 |
Average Annual Total Return Ended 08/31/2011 | |||||||||||||||||||
Inception Date | 1 Year | 5 Years | 10 Years | Life of Fund | |||||||||||||||
At NAV | |||||||||||||||||||
Investor Class | 12/06/1999 | 19.44 | % | 2.52 | % | 1.29 | % | –2.54 | % | ||||||||||
Institutional Class19 | 04/06/2009 | 19.79 | % | 2.70 | % | 1.38 | % | –2.47 | % | ||||||||||
Class A19 | 04/06/2009 | 19.30 | % | 2.49 | % | 1.28 | % | –2.55 | % | ||||||||||
Class C19 | 04/06/2009 | 18.63 | % | 2.17 | % | 1.12 | % | –2.68 | % | ||||||||||
Class R319 | 05/27/2009 | 19.16 | % | 2.43 | % | 1.25 | % | –2.58 | % | ||||||||||
With Sales Charge | |||||||||||||||||||
Class A19 | 12.39 | % | 1.28 | % | 0.68 | % | –3.04 | % | |||||||||||
Class C19 | 17.63 | % | 2.17 | % | 1.12 | % | –2.68 | % | |||||||||||
Index | |||||||||||||||||||
Russell 1000® Growth Index1,18 | 23.96 | % | 3.75 | % | 2.71 | % | –1.63 | % |
Performance data quoted represent past performance and do not indicate future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Results are shown on a "total return" basis and include reinvestment of all income dividends and distributions.
Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2010 were 1.24%, 0.87%, 1.31%, 2.01% and 3.24% for Investor Class, Institutional Class, Class A, Class C and Class R3 shares, respectively (prior to any fee waivers and/or expense reimbursements, if any). The expense ratios net of waivers and/or reimbursements were 1.11%, 0.75%, 1.11%, 1.86% and 1.36% for Investor Class, Institutional Class, Class A, Class C and Class R3 shares, respectively. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through August 31, 2015 for Investor Class shares and through August 31, 2014 for Institutional Class, Class A, Class C and Class R3 shares.
Total 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.
The results shown in the table do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares.
46
Large Cap Disciplined Growth Fund (Unaudited)
COMPARISON OF A $10,000 INVESTMENT |
This graph shows the change in value of a hypothetical $10,000 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 Investor 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. All results include the reinvestment of income dividends and distributions. The results shown in the graph do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
47
Large Cap Value Fund Commentary (Unaudited)
Neuberger Berman Large Cap Value Fund Institutional Class posted a 20.87% total return for the fiscal year ended August 31, 2011, outperforming its benchmark, the Russell 1000® Value Index, which provided a 14.37% return. (Performance for all share classes is provided in the table immediately following this letter.)
The equity market rose and fell over the fiscal year amidst a myriad of macro events. In the first half of the period, stocks appreciated steadily alongside positive headlines that included improving retail sales and consumer spending in the U.S. and rising manufacturing and industrial production in the U.S., China and Europe. Also during this time, regulatory actions such as the release of the Basel III rules (which impact banking capital requirements) and the extension of the Bush tax cuts provided a tailwind as we believe they removed some elements of uncertainty in the market. Still, concerns about the sovereign debt crisis in Europe and monetary tightening in China lingered in the background, and in the weeks that followed escalating geopolitical tensions in the Middle East and North Africa as well as the catastrophic earthquake/tsunami in Japan threw the market off its course.
Equities moved in fits and starts over the first few months and into the second half of the reporting period. M&A activity picked-up and companies in general continued to beat expectations for both earnings and revenues. Sovereign debt issues in Europe and the U.S. returned to the forefront and economic data, particularly manufacturing, began to deteriorate on a global level. At the very end of the period, conditions across Europe became increasingly dire and it became apparent that the U.S. Government was too polarized to pass a viable long-term solution for the domestic economy—leading Standard & Poor's to downgrade the U.S. credit rating from its AAA status. The market gave back some of its gains during this time but remained in positive territory for the fiscal year.
Within the portfolio, Energy was the most beneficial sector to relative performance over the period due to strong stock selection. Five of the Fund's top 10 contributors came from this sector, including Range Resources and Cabot Oil & Gas. Both of these companies are natural gas plays in the Marcellus Shale region, and the market came to realize their value in force this period, in our observation. Range Resources advanced by over 90% for the year and Cabot was up 173%.
An underweight in the Financials sector also contributed to our relative performance. Financials was the only sector within the index to generate a negative return for the year, with companies under pressure for both political and fundamental reasons. Among the financial stocks we did own, Citigroup, Goldman Sachs, Bank of America and Morgan Stanley detracted from results.
Consumer Staples was another strong sector for the portfolio. As economic worries increased in recent months, investors who had previously preferred economically sensitive stocks were drawn to companies whose businesses have that potential to grow without the benefit of U.S. economic growth. As a result, Consumer Staples companies—and the holdings we own in the sector—began to outperform early in the second quarter of 2011. In Consumer Discretionary, the portfolio benefited from Comcast and Brinker International, which was sold. Comcast had been, in our opinion, a misunderstood story with regard to the NBC Universal acquisition, and the stock was undervalued as a result. We recognized the value of the revenue potential and cost synergies of the deal early on and were rewarded as performance improved.
The Information Technology sector was the largest detriment to portfolio performance relative to the index, due mainly to Hewlett-Packard. The company had been performing well under the direction of CEO Mark Hurd, who was ousted in August 2010. We believed there was a valuation case to be made after his departure, but as earnings weakened and company strategy became less clear with the announcement of a plan to divest Hewlett-Packard of its personal computer business and buy an expensive software company, we sold the stock in August 2011.
We closed the period underweighted in Financials, Consumer Discretionary and Health Care compared to the benchmark, and overweighted in Materials (primarily gold and agriculture), and to a lesser extent, Consumer Staples. Looking ahead, we are seeing a tempering of earnings expectations for companies over the next few quarters as the domestic economy continues on a path of sluggish growth. However, market movements are being increasingly driven by
48
events around the world, so we anticipate volatility may remain high as investors react to macroeconomic and geopolitical developments. At the same time, we believe such market volatility can uncover favorable buying opportunities. As bottom-up, value driven managers, we intend to use this to our advantage by remaining focused on our core strategy: finding attractively valued companies that have solid fundamentals and identifiable catalysts that can help them reach their true value over time. In addition, we continue to pay close attention to how individual portfolio holdings correlate with each other in order to create a portfolio with an optimal risk-return balance. We believe that staying true to our bottom-up stock selection process while remaining nimble to new opportunities can produce favorable portfolio outperformance over an economic cycle.
Sincerely,
Eli M. Salzmann
Portfolio Manager
The risks involved in seeking capital appreciation from investments primarily in companies with large capitalization are set forth in the prospectus and statement of additional information.
Investing in the stocks of even the largest companies involves all the risks of stock market investing, including the risk that they may lose value due to overall market or economic conditions.
The composition, industries and holdings of the Fund are subject to change.
49
Large Cap Value Fund (Unaudited)
TICKER SYMBOLS |
Institutional Class | NLRLX | ||
Class A | NVAAX | ||
Class C | NVACX |
SECTOR ALLOCATION |
(as a % of Total Investments) | |||||
Consumer Discretionary | 6.1 | % | |||
Consumer Staples | 9.3 | ||||
Energy | 10.2 | ||||
Financials | 23.1 | ||||
Health Care | 10.4 | ||||
Industrials | 9.6 | ||||
Information Technology | 7.8 | ||||
Materials | 4.9 | ||||
Telecommunication Services | 5.3 | ||||
Utilities | 7.4 | ||||
Short-Term Investments | 5.9 | ||||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS2,9 |
Average Annual Total Return Ended 08/31/2011 | |||||||||||
Inception Date | 1 Year | Life of Fund | |||||||||
At NAV | |||||||||||
Institutional Class27 | 04/19/2010 | 20.87 | % | 2.27 | % | ||||||
Class A27 | 03/02/2011 | 20.63 | % | 2.23 | % | ||||||
Class C27 | 03/02/2011 | 20.14 | % | 2.15 | % | ||||||
With Sales Charge | |||||||||||
Class A27 | 13.69 | % | 0.99 | % | |||||||
Class C27 | 19.14 | % | 2.15 | % | |||||||
Index | |||||||||||
Russell 1000® Value Index1,18 | 14.37 | % | –2.60 | % |
The performance data for each class includes the performance of the Fund's oldest share class, Trust Class, from November 2, 2006 through April 19, 2010. The performance data for Class A and Class C also includes the performance of the Fund's Institutional Class from April 19, 2010 through March 2, 2011. See note 27 for information about the effects of the different fees paid by each class.
Performance data quoted represent past performance and do not indicate future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Results are shown on a "total return" basis and include reinvestment of all income dividends and distributions.
Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2010 were 15.26%, 1.51% and 2.26% for Institutional Class, Class A and Class C shares, respectively (prior to any fee waivers and/or expense reimbursements, if any). The expense ratios net of waivers and/or reimbursements were 0.76%, 1.12% and 1.87% for Institutional Class, Class A and Class C shares, respectively. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through August 31, 2014 for Institutional Class, Class A and Class C shares.
Total 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.
The results shown in the table do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares.
50
Large Cap Value Fund (Unaudited)
COMPARISON OF A $1,000,000 INVESTMENT27 |
(000's 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. All results include the reinvestment of income dividends and distributions. The results shown in the graph do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
51
Mid Cap Growth Fund Commentary (Unaudited)
Neuberger Berman Mid Cap Growth Fund Investor Class generated a 28.59% total return for the fiscal year ended August 31, 2011, outperforming its benchmark, the Russell Midcap® Growth Index, which provided a 25.61% return for the period. (Performance for all share classes is provided in the table immediately following this letter.)
The past fiscal year has been a roller coaster of market activity, emotions and "risk on/risk off" sentiments. We saw the implementation and winding down of the Federal Reserve's second quantitative easing effort, or QE2, a debt ceiling political skirmish and U.S. credit downgrade, and a continued cycle of optimism and regression around Europe's debt contagion. More recently, economic indicators and sentiment have turned negative, creating an aura of pessimism around the global economy and the pace of the U.S. recovery.
Despite the current backdrop, over the last 12 months every sector delivered positive returns, with the Health Care, Industrials and Energy sectors being the top contributors to the Fund's relative performance. Health Care was led by Alexion Pharmaceuticals, a company specializing in therapies for rare and life threatening diseases, which benefited from the continuing international rollout of Solaris, and Cerner Corporation, a health care information technology company, which benefited from an industry-wide focus on cost cutting and organization through software applications.
Within Industrials, significant contributors to performance were Fastenal, a wholesale and retail distributor of industrials and construction supplies, and Sensata Technologies, a manufacturer of controls and sensors for use in automobiles and aerospace. Fastenal benefited from new product introductions and Sensata from the trend of higher sensor content per automobile.
Energy, with a focus on on-shore exploration and production, also delivered one of the strongest absolute sector return for the period. Carbo Ceramics, a manufacturer of proppants used in oil and natural gas extraction, benefited from top- and bottom-line growth, and Concho Resources, an exploration company, outperformed on the strength of oil prices, production growth and excellent cost control.
Underperforming sectors included Consumer Discretionary, Telecommunication Services and Financials. Consumer Discretionary, despite strong returns from several of our largest positions, underperformed due in part to our underweight position relative to the benchmark. Conversely, our overweight in Telecommunications and an emphasis on tower companies such as SBA Communications resulted in relative underperformance. Stifel Financial, a retail and institutional brokerage and investment banking firm, was the primary detractor from the Fund's Financials sector performance, as the firm experienced a decline in trading volume and weakness in investment banking. We subsequently sold our position in Stifel.
The Fund's overall top detractor was WESCO International, a wholesale and retail industrial distributor with products more closely tied to housing. With no concrete rebound in housing on the horizon, we sold the stock.
Based on our current expectations for the balance of 2011 and into 2012, we remain overweighted in Industrials, Health Care and Information Technology and underweighted in Materials, Consumer Discretionary and Consumer Staples. We believe innovation and unique products and services can be catalysts for outperformance in a tough environment and our sector overweights reflect that belief. Inconsistent earnings and high cyclicality lead us to be underweighted in Materials and the stubbornly sluggish recoveries in employment and housing have us underweighted in the consumer sectors.
As we look forward, we believe analyst expectations of the markets are likely to moderate, which, in our view, should be a positive as we believe that they were too high and predicated on an overly optimistic view of the economy's recovery. While we expect strategic capital investment and M&A activity to continue, we believe that corporations are clearly looking for greater clarity on the economy, as well as on regulatory and tax issues out of Washington, before they substantially start allocating cash to expanding headcount. As a result, we think unemployment may remain stubbornly high for at least the near term. While commodity input costs have risen and we have seen food and gas price inflation impact a weakened consumer, we are not seeing broad inflation in our companies' financial reporting numbers and we
52
believe it is likely that a weaker market will serve to further correct those inflated commodity prices. With respect to monetary policy, we don't expect a third iteration of quantitative easing to be immediately implemented, however, continued weak economic indicators may force the Federal Reserve into further monetary action. Regardless, we anticipate that we will see interest rates remaining low for the foreseeable future.
Despite a tougher-than-expected environment, we remain cautiously optimistic. Growth is still evident and we think mid-cap valuations are now once again attractive. We continue to focus, as we always have, on identifying higher quality growth companies with innovative, new product cycles, exceptional top-line growth, and the management teams, operating models, and balance sheet strength needed to continue to succeed in a competitive global economy. Quality has historically shined when investors have been discriminating and mindful of risk. Given the current sentiment in the market and the potential for a scarcity of strong growth, we remain confident that now is the time to embrace higher quality.
Sincerely,
Kenneth J. Turek
Portfolio Manager
The risks involved in seeking capital appreciation from investments primarily in companies with mid-market capitalization are set forth in the prospectus and statement of additional information.
Mid-capitalization stocks are more vulnerable to financial risks and other risks than stocks of larger companies. They also trade less frequently and in lower volume than larger company stocks, so their market prices tend to be more volatile.
The composition, industries and holdings of the Fund are subject to change.
53
Mid Cap Growth Fund (Unaudited)
TICKER SYMBOLS |
Investor Class | NMANX | ||
Trust Class | NBMTX | ||
Advisor Class | NBMBX | ||
Institutional Class | NBMLX | ||
Class A | NMGAX | ||
Class C | NMGCX | ||
Class R3 | NMGRX |
SECTOR ALLOCATION |
(as a % of Total Investments) | |||||
Consumer Discretionary | 16.9 | % | |||
Consumer Staples | 3.3 | ||||
Energy | 9.9 | ||||
Financials | 4.0 | ||||
Health Care | 16.3 | ||||
Industrials | 19.0 | ||||
Information Technology | 23.5 | ||||
Materials | 2.3 | ||||
Telecommunication Services | 3.5 | ||||
Short-Term Investments | 1.3 | ||||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHT2,7,10 |
Average Annual Total Return Ended 08/31/2011 | |||||||||||||||||||
Inception Date | 1 Year | 5 Years | 10 Years | Life of Fund | |||||||||||||||
At NAV | |||||||||||||||||||
Investor Class | 03/01/19793 | 28.59 | % | 5.82 | % | 5.12 | % | 11.71 | % | ||||||||||
Trust Class4 | 08/30/1993 | 28.45 | % | 5.63 | % | 4.96 | % | 11.62 | % | ||||||||||
Advisor Class4 | 09/03/1996 | 28.01 | % | 5.35 | % | 4.64 | % | 11.43 | % | ||||||||||
Institutional Class6 | 04/19/2007 | 28.92 | % | 6.15 | % | 5.28 | % | 11.76 | % | ||||||||||
Class A20 | 05/27/2009 | 28.43 | % | 5.80 | % | 5.11 | % | 11.71 | % | ||||||||||
Class C20 | 05/27/2009 | 27.43 | % | 5.43 | % | 4.93 | % | 11.65 | % | ||||||||||
Class R320 | 05/27/2009 | 28.09 | % | 5.67 | % | 5.05 | % | 11.69 | % | ||||||||||
With Sales Charge | |||||||||||||||||||
Class A20 | 21.07 | % | 4.55 | % | 4.49 | % | 11.50 | % | |||||||||||
Class C20 | 26.43 | % | 5.43 | % | 4.93 | % | 11.65 | % | |||||||||||
Index | |||||||||||||||||||
Russell Midcap® Growth Index1,18 | 25.61 | % | 4.28 | % | 5.90 | % | N/A | ||||||||||||
Russell Midcap® Index1,18 | 21.28 | % | 2.99 | % | 7.16 | % | 13.13 | % |
Performance data quoted represent past performance and do not indicate future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Results are shown on a "total return" basis and include reinvestment of all income dividends and distributions.
Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2010 were 1.09%, 1.15%, 1.52%, 0.85%, 1.30%, 2.66% and 3.17% for Investor Class, Trust Class, Advisor Class, Institutional Class, Class A, Class C and Class R3 shares, respectively (prior to any fee waivers and/or expense reimbursements, if any). The expense ratios net of waivers and/or reimbursements were 0.77%, 1.13%, 1.88%, and 1.38% for Institutional Class, Class A, Class C and Class R3 shares, respectively. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through August 31, 2021 for Advisor Class shares and through August 31, 2014 for Institutional Class, Class A, Class C and Class R3 shares.
Total 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.
The results shown in the table do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares.
54
Mid Cap Growth Fund (Unaudited)
COMPARISON OF A $10,000 INVESTMENT |
This graph shows the change in value of a hypothetical $10,000 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 Investor 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. All results include the reinvestment of income dividends and distributions. The results shown in the graph do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
55
Multi-Cap Opportunities Fund Commentary (Unaudited)
Neuberger Berman Multi-Cap Opportunities Fund Institutional Class generated a 20.09% total return for the fiscal year ended August 31, 2011, outperforming its benchmark the S&P 500 Index, which provided an 18.50% return for the period. (Performance for all share classes is provided in the table immediately following this letter.)
The equity markets posted double-digit returns for the reporting period. For much of the fiscal year, equities were supported by accommodative monetary policy, attractive relative valuations, and strong corporate profits. Investor confidence, however, shifted over the last four months of the period as weak economic data raised concerns of a slowdown in the recovery. Additionally, uncertainty regarding European debt restructuring and global fiscal policy continued to weigh on the market. Volatility increased and equities pulled back sharply to close the year.
Portfolio construction is an important component of our investment process and consists of three distinct investment categories: Classic, Opportunistic, and Special Situations investments. We define Classic investments as stocks of financially stable, recognizable companies, with consistent free cash flow from diverse sources and high returns on invested capital. Opportunistic investments are stocks of undervalued, underfollowed, or inherently misunderstood companies with high free cash flow yields and improving returns on invested capital. Finally, Special Situations are companies in which we see potential benefits from under-recognized recovery prospects, new management teams, restructuring, spin-offs or other special situations, including post-bankruptcy recapitalizations.
The Fund's balanced approach across our three investment categories helped mitigate risk in a volatile equity environment with broad based alpha generation (added value) coming through stock picking. Special Situations and Opportunistic companies were key drivers of performance during the strong market conditions over the first part of the fiscal year. As market trends reversed, the larger Classic companies dampened volatility and were a source of alpha generation through stock selection. During the period, we have been increasing the Fund's exposure to Special Situations and Opportunistic companies while selectively trimming Classic companies that have done well. In our opinion, the increase in balance sheet restructuring opportunities provided an attractive environment for Special Situations investing. Additionally, price volatility enabled us to take advantage of disconnects between company fundamentals and stock valuations, resulting in an increase in Opportunistic investments.
Within the S&P 500 Index, cyclical sectors such as Consumer Discretionary and Energy were the strongest performers, while Financials underperformed. The Fund's overweight position relative to the benchmark in the Consumer Discretionary sector and underweight in Financials were two significant contributors to performance relative to the benchmark. Additionally, the Fund owned companies across various industries that meaningfully outperformed the overall market and their respective sectors. Stock selection within the Consumer Discretionary and Energy sectors was the largest contributor to relative performance, while investments in the Information Technology (IT) sector hindered relative performance. The Fund finished the fiscal year with an overweight position in the Consumer Discretionary and Industrials sectors and a relative underweight in Financials, IT and Consumer Staples.
We added several new positions to the portfolio this year, providing exposure to such themes as international growth, U.S. consumer strength versus low expectations, companies with pricing power that we believe can offset rising input costs, and increased energy demand. We think we have been able to find high-quality franchises with strong free cash flow generation trading at attractive relative valuations.
Looking forward, we continue to believe that U.S. economic growth will be slow, while global growth will be somewhat more robust, particularly in developing economies. Regarding the equity markets, the combination of strong company fundamentals and attractive relative valuations gives us confidence in the opportunities available to investors with a reasonable time horizon. Broadly speaking, corporate profitability and free cash flow generation remain strong and balance sheets are healthy. We consider stock valuations to be attractive, both in absolute terms and relative to other asset classes, particularly given the low yields on cash and high-quality fixed income investments. We believe there is potential for attractive returns in the equity markets, albeit with heightened volatility from macro headwinds. We will continue to maintain a balanced approach across our three investment categories in an effort to help mitigate risk and dampen volatility.
56
Our investment process is based on deep fundamental research and valuation analysis. As we evaluate both potential new positions and current portfolio holdings, we continue to do so with a long-term investment perspective in mind. As always, our focus is to grow our investor's assets through the disciplined application of our investment process.
Sincerely,
Richard S. Nackenson
Portfolio Manager
The risks involved in seeking capital appreciation from investments in a wide array of stocks are set forth in the prospectus and statement of additional information.
To the extent that the Fund emphasizes small-, mid- or large-cap stocks, it takes on the associated risks. At times, large-cap stocks may lag other types of stocks in performance, which could cause a fund holding those stocks to perform worse than certain other funds. Small- and mid-capitalization stocks are more vulnerable to financial risks and other risks than stocks of larger companies. They also trade less frequently and in lower volume than larger company stocks, so their market prices tend to be more volatile.
Companies that are considered "special situations" include, among other things: companies that have unrecognized recovery prospects or new management teams; companies involved in restructurings or spin-offs; companies emerging from bankruptcy; initial public offerings that trade below their initial offering prices; and companies with a break-up value above their market price. The principal risk associated with special situations is that certain of such situations may not develop as expected or the market may react differently than expected to such situations, in which case the Fund may realize losses.
The composition, industries and holdings of the Fund are subject to change.
57
Multi-Cap Opportunities Fund (Unaudited)
TICKER SYMBOLS |
Institutional Class | NMULX | ||
Class A | NMUAX | ||
Class C | NMUCX |
SECTOR ALLOCATION |
(as a % of Total Investments) | |||||
Consumer Discretionary | 22.7 | % | |||
Consumer Staples | 7.3 | ||||
Energy | 11.0 | ||||
Financials | 6.3 | ||||
Health Care | 12.3 | ||||
Industrials | 17.1 | ||||
Information Technology | 13.1 | ||||
Materials | 4.4 | ||||
Utilities | 2.4 | ||||
Short-Term Investments | 3.4 | ||||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS2,9 |
Average Annual Total Return Ended 08/31/2011 | |||||||||||
Inception Date | 1 Year | Life of Fund | |||||||||
At NAV | |||||||||||
Institutional Class22 | 12/21/2009 | 20.09 | % | 1.02 | % | ||||||
Class A22 | 12/21/2009 | 19.48 | % | 0.88 | % | ||||||
Class C22 | 12/21/2009 | 18.82 | % | 0.64 | % | ||||||
With Sales Charge | |||||||||||
Class A22 | 12.60 | % | –0.35 | % | |||||||
Class C22 | 17.82 | % | 0.64 | % | |||||||
Index | |||||||||||
S&P 500 Index1,18 | 18.50 | % | –0.23 | % |
Prior to December 14, 2009, Neuberger Berman Multi-Cap Opportunities Fund was known as Neuberger Berman Research Opportunities Fund, which had different investment goals, strategies, and portfolio management team. The performance data for each class includes the performance of the Fund's oldest share class, Trust Class, from November 2, 2006 through December 21, 2009. See footnote 22 for information about the effects of the different fees paid by each class.
Performance data quoted represent past performance and do not indicate future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Results are shown on a "total return" basis and include reinvestment of all income dividends and distributions.
Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2010 were 1.95%, 3.19% and 6.44% for Institutional Class, Class A and Class C shares, respectively (prior to any fee waivers and/or expense reimbursements, if any). The expense ratios net of waivers and/or reimbursements were1.01%, 1.37% and 2.13% for Institutional Class, Class A and Class C shares, respectively. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through August 31, 2014 for Institutional Class, Class A and Class C shares.
Total 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.
The results shown in the table do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares.
58
Multi-Cap Opportunities Fund (Unaudited)
COMPARISON OF A $1,000,000 INVESTMENT22 |
(000's 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. All results include the reinvestment of income dividends and distributions. The results shown in the graph do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
59
Partners Fund Commentary (Unaudited)
Neuberger Berman Partners Fund Investor Class generated a 13.48% return for the fiscal year ended August 31, 2011, trailing the Russell 1000® Value Index, which provided a 14.37% return, as well as the S&P 500 Index, which advanced by 18.50%. (Performance for all share classes is provided in the table immediately following this letter.) These positive absolute returns came despite market turmoil in last few months of the period. The Fund's relative underperformance was primarily due to disappointing results in several Information Technology holdings.
In many ways, the economy and the stock market have come full circle over the last year. Prior to the reporting period, the Greek debt crisis and the potential for it to spread to other leveraged European economies, combined with a sluggish economic recovery in the U.S., had triggered investor concern about a global economic slowdown and the potential for a double-dip recession in the U.S. Following the second quantitative easing by the Fed, some progress in resolving European debt issues, and increasing evidence that the U.S. economic recovery was sustainable, stocks, especially more economically sensitive stocks, rallied. Today, European debt woes are once again front page news and the lack of job growth and weakening investor sentiment have undermined investor confidence in the U.S. and global economic recoveries. Stocks, particularly more economically sensitive issues, have sold off sharply. We continue to believe that the U.S. and global economies can avoid slipping back into recession and that economically sensitive stocks are especially attractive based on valuation in relation to longer-term earnings power.
Health Care sector investments had the most positive impact on portfolio returns relative to the Russell 1000 Value Index this year. Ongoing strength in Shire's core franchise related to ADHD treatment along with the introduction of several new biotechnology products resulted in a substantial gain for the stock, the portfolio's single biggest performance contributor. HMOs WellPoint and Aetna also performed well. HMOs benefited from reduced medical procedures due in large part to the weak economy. We think this trend will continue as economic growth remains muted. Covidien, a medical devices supplier to hospitals, made substantial progress with improved execution on its internal business plan. Due in large part to the strong performance of Teck Resources, which benefited from the shortage of metallurgical coal caused by this year's Australian floods, our Materials sector holdings buoyed relative returns. Led by leading bond rating agency Moody's, whose results were bolstered by a substantial increase in corporate bond issuance, Financials sector investments also outperformed.
Stock selection in the Information Technology sector penalized returns. Lender Processing Services, a company that provides software for large mortgage providers (the major banks), became embroiled in legal actions relating to flaws in the foreclosure process. We believe that the mortgage processors are the primary culprits in this controversy and that Lender Processing Services will ultimately be vindicated. Consequently, we have maintained a position in this beaten-down security. The poor performance of Hewlett-Packard resulted, in our opinion, from its ill-advised acquisition of Autonomy, a software company. However, what we consider Hewlett-Packard's low stock valuation has prompted us to maintain a position in the company.
Although our Energy sector investments delivered a mid 20% return, they lagged the corresponding benchmark component. The poor performance of Petrobras, which issued a massive and highly dilutive secondary equity offering, deserves much of the blame. We are discomforted by the Brazilian government's increasingly active role in the management of the company and have therefore exited the stock. Lagging performance of oil services companies Weatherford International and McDermott International also restrained relative returns in the Energy sector.
Looking ahead, while the macroeconomic outlook remains somewhat clouded and the European sovereign debt issues bear close watching, we believe the global economy will remain on a slow growth path. Although the U.S. economy has slowed and sentiment indicators have turned negative, we believe that strong corporate balance sheets and modest valuations, especially relative to Treasury securities, present a positive case for equities. We remain comfortable with our sector exposures, which (aside from underweights in Financials and Utilities) are generally in line with the benchmark Russell 1000 Value Index weightings, and with our individual holdings, many of which now appear to us significantly undervalued based on their long-term earnings potential and balance sheet strength. In general, we are still seeing greater
60
value in cyclical rather than in defensive names, which in our view appear more expensive relative to long-term growth potential.
In closing, we can never be sure what the economy and stock market have in store, especially in the short term. However, we can and will remain dedicated to identifying conservatively financed, high quality companies trading at attractive discounts to normalized earnings power—a strategy we believe will continue to benefit Fund shareholders.
Sincerely,
S. Basu Mullick
Portfolio Manager
The risks involved in seeking capital appreciation from investments primarily in mid- to large-cap stocks are set forth in the prospectus and statement of additional information.
Mid-capitalization stocks are more vulnerable to financial risks and other risks than larger stocks. They also trade less frequently and in lower volume than larger company stocks, so their market prices tend to be more volatile. Large-cap stocks are subject to all the risks of stock market investing, including the risk that they may lose value due to overall market or economic conditions.
The composition, industries and holdings of the Fund are subject to change.
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Partners Fund (Unaudited)
TICKER SYMBOLS |
Investor Class | NPRTX | ||
Trust Class | NBPTX | ||
Advisor Class | NBPBX | ||
Institutional Class | NBPIX | ||
Class A | NPNAX | ||
Class C | NPNCX | ||
Class R3 | NPNRX |
SECTOR ALLOCATION |
(as a % of Total Investments) | |||||
Consumer Discretionary | 10.8 | % | |||
Consumer Staples | 5.0 | ||||
Energy | 15.5 | ||||
Financials | 22.6 | ||||
Health Care | 13.3 | ||||
Industrials | 11.4 | ||||
Information Technology | 9.0 | ||||
Materials | 3.7 | ||||
Telecommunication Services | 2.6 | ||||
Utilities | 3.4 | ||||
Short-Term Investments | 2.7 | ||||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS2,7 |
Average Annual Total Return Ended 08/31/2011 | |||||||||||||||||||
Inception Date | 1 Year | 5 Years | 10 Years | Life of Fund | |||||||||||||||
At NAV | |||||||||||||||||||
Investor Class | 01/20/19753 | 13.48 | % | –0.93 | % | 3.81 | % | 12.62 | % | ||||||||||
Trust Class4 | 08/30/1993 | 13.32 | % | –1.11 | % | 3.63 | % | 12.55 | % | ||||||||||
Advisor Class4 | 08/16/1996 | 13.09 | % | –1.26 | % | 3.44 | % | 12.42 | % | ||||||||||
Institutional Class6 | 06/07/2006 | 13.69 | % | –0.77 | % | 3.90 | % | 12.64 | % | ||||||||||
Class A24 | 06/21/2010 | 13.20 | % | –0.99 | % | 3.78 | % | 12.61 | % | ||||||||||
Class C24 | 06/21/2010 | 12.32 | % | –1.17 | % | 3.68 | % | 12.58 | % | ||||||||||
Class R324 | 06/21/2010 | 12.93 | % | –1.05 | % | 3.74 | % | 12.60 | % | ||||||||||
With Sales Charge | |||||||||||||||||||
Class A24 | 6.70 | % | –2.16 | % | 3.16 | % | 12.43 | % | |||||||||||
Class C24 | 11.32 | % | –1.17 | % | 3.68 | % | 12.58 | % | |||||||||||
Index | |||||||||||||||||||
Russell 1000® Value Index1,18 | 14.37 | % | –1.62 | % | 3.41 | % | N/A | ||||||||||||
S&P 500 Index1,18 | 18.50 | % | 0.78 | % | 2.70 | % | 11.45 | % |
Performance data quoted represent past performance and do not indicate future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Results are shown on a "total return" basis and include reinvestment of all income dividends and distributions.
Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2010 were 0.85%, 1.03%, 1.18%, 0.69%, 1.04%, 1.79% and 1.29% for Investor Class, Trust Class, Advisor Class, Institutional Class, Class A, Class C and Class R3 shares, respectively (prior to any fee waivers and/or expense reimbursements, if any). Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through August 31, 2021 for Advisor Class shares and through August 31, 2014 for Trust Class, Institutional Class, Class A, Class C and Class R3 shares.
Total 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.
The results shown in the table do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares.
62
Partners Fund (Unaudited)
COMPARISON OF A $10,000 INVESTMENT |
This graph shows the change in value of a hypothetical $10,000 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 Investor 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. All results include the reinvestment of income dividends and distributions. The results shown in the graph do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
63
Real Estate Fund Commentary (Unaudited)
Neuberger Berman Real Estate Fund Trust Class generated a 17.53% total return for the fiscal year ended August 31, 2011, and lagged its benchmark, the FTSE NAREIT All Equity REITs Index, which provided an 18.44% return. (Performance for all share classes is provided in the table immediately following this letter.)
Despite weakness toward the end of the reporting period, the real estate investment trust (REIT) market produced strong results for the fiscal year. Signs that REIT business fundamentals were beginning to improve, including better cash flows and REITs' continued ability to access the capital markets, supported the market. In addition, demand for REITs was generally strong as investors sought to generate relatively attractive yields in the low interest rate environment. However, as was the case with the overall stock market, REITs took a step backward late in the reporting period. During this time, investor risk aversion increased, given fears of a double-dip recession, the downgrade of the U.S. credit rating and concerns regarding the escalating European sovereign debt crisis.
Several adjustments were made to the portfolio during the period. While we continued to have an underweight in the Apartments sector versus the benchmark, we did increase exposure during the period. The underweight detracted from results as the sector was among the best performers during the fiscal year. The Fund's allocation to the Lodging/Resorts sector was pared, but we maintained an overweight versus the benchmark. This was not rewarded, as the sector performed poorly given fears of a global economic slowdown. In contrast, the Fund benefited from increasing its exposure to the Office sector. We were drawn to this sector by its favorable valuations following the lengthy economic downturn. We also saw fundamentals improve in a number of major markets, including New York City, Boston and certain West Coast cities. While the Fund was rewarded for its overweight to the Industrial sector—namely distribution warehouse REITs—we pared this allocation given concerns about the economic impact from the European sovereign debt crisis.
Overall, our stock selection benefited performance. Regional mall operator Simon Property Group was the Fund's top performing holding. The company has what we consider a compelling mix of high quality properties, as well as price-conscious outlet centers. In addition, we believe it has a strong management team and is well positioned to pursue acquisition opportunities. The Fund's position in the company Public Storage was also beneficial. Fundamentals in the Self Storage sector improved and the company was rewarded for generating strong cash flow and having low debt. Office REIT Boston Properties was another solid contributor to results. The company owns a high quality portfolio of office properties in New York City, Washington D.C., Boston and San Francisco. In addition, it has a strong balance sheet and, in our view, good access to capital.
Lodging and resort company Marriott International was the largest detractor from performance. The thesis behind this investment was our expectation for strengthening fundamentals as the economy expanded. However, the company's stock fell sharply due to signs of moderating economic growth and disappointing revenues. Another lodging and resort company, Strategic Hotels and Resorts, was hurt for having a somewhat risky balance sheet. There were also concerns that its upscale properties would be especially susceptible to a slower economy. A position in Timber REIT Weyerhaeuser Co. was also detrimental to portfolio performance. Its shares declined given decreased demand for lumber from ongoing weakness in the housing market.
Looking ahead, we maintain a positive long-term outlook for REITs due to favorable supply/demand trends and what we consider increasingly attractive stock valuations. We also anticipate seeing REIT cash flows improve over time. This could result in stronger balance sheets and dividend increases from many REITs. That said, our shorter-term outlook is somewhat cautious given several potential headwinds that could impact valuations. First, while we do not think the U.S. will slip back into recession, the economy has clearly lost some momentum. As such, REIT cash flow growth may weaken. Second, borrowing costs for REITs have remained relatively stable due to low Treasury yields. However, we continue to closely monitor the debt capital markets, as disruptions can influence both REIT borrowing costs and asset values. Third, geopolitical risks related to both European sovereign debt issues and U.S. deficit reduction efforts may influence economic activity and capital costs.
64
Given these near-term uncertainties, we have placed a greater emphasis on companies with lower financial leverage and those that have, in our opinion, sustainable cash flows. We have been paring our exposure to certain REITs that are more cyclical and which we think could feel the brunt of continued economic weakness.
Sincerely,
Steve S. Shigekawa and Brian Jones
Portfolio Co-Managers
The risks involved in seeking capital appreciation and income from investments primarily in companies, in particular REITs, with small- and mid-market capitalization are set forth in the prospectus and statement of additional information.
Small- and mid-capitalization stocks are more vulnerable to financial risks and other risks than stocks of larger companies. They also trade less frequently and in lower volume than larger company stocks, so their market prices tend to be more volatile.
The portfolio's concentration in real estate investments makes it subject to greater potential risks and volatility than a more diversified portfolio, and the value of its shares may decline due to events affecting the real estate industry.
The composition, industries and holdings of the Fund are subject to change.
65
Real Estate Fund (Unaudited)
TICKER SYMBOLS |
Trust Class | NBRFX | ||
Institutional Class | NBRIX | ||
Class A | NREAX | ||
Class C | NRECX | ||
Class R3 | NRERX |
SECTOR ALLOCATION |
(as a % of Total Investments) | |||||
Apartments | 15.6 | % | |||
Diversified | 9.9 | ||||
Health Care | 10.5 | ||||
Industrial | 4.8 | ||||
Lodging/Resorts | 6.6 | ||||
Mixed | 1.0 | ||||
Office | 14.7 | ||||
Regional Malls | 14.0 | ||||
Self Storage | 6.1 | ||||
Shopping Centers | 10.4 | ||||
Timber | 3.5 | ||||
Short-Term Investments | 2.9 | ||||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS2,7 |
Average Annual Total Return Ended 08/31/2011 | |||||||||||||||
Inception Date | 1 Year | 5 Years | Life of Fund | ||||||||||||
At NAV | |||||||||||||||
Trust Class | 05/01/2002 | 17.53 | % | 2.69 | % | 12.23 | % | ||||||||
Institutional Class6 | 06/04/2008 | 17.77 | % | 2.83 | % | 12.31 | % | ||||||||
Class A17 | 06/21/2010 | 17.33 | % | 2.65 | % | 12.20 | % | ||||||||
Class C17 | 06/21/2010 | 16.44 | % | 2.47 | % | 12.09 | % | ||||||||
Class R317 | 06/21/2010 | 17.00 | % | 2.58 | % | 12.16 | % | ||||||||
With Sales Charge | |||||||||||||||
Class A17 | 10.62 | % | 1.44 | % | 11.49 | % | |||||||||
Class C17 | 15.44 | % | 2.47 | % | 12.09 | % | |||||||||
Index | |||||||||||||||
FTSE NAREIT All Equity REITs Index1,18 | 18.44 | % | 0.23 | % | 9.62 | % |
Performance data quoted represent past performance and do not indicate future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Results are shown on a "total return" basis and include reinvestment of all income dividends and distributions.
Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2010 were 1.76%, 1.40%, 1.52%, 2.27% and 1.77% for Trust Class, Institutional Class, Class A, Class C and Class R3 shares, respectively (prior to any fee waivers and/or expense reimbursements, if any). The expense ratios net of waivers and/or reimbursements were 1.51%, 0.86%, 1.22%, 1.97% and 1.47% for Trust Class, Institutional Class, Class A, Class C and Class R3 shares, respectively. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through August 31, 2021 for Trust Class and Institutional Class shares and through August 31, 2014 for Class A, Class C and Class R3 shares.
Total 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.
The results shown in the table do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares.
66
Real Estate Fund (Unaudited)
COMPARISON OF A $10,000 INVESTMENT |
This graph shows the change in value of a hypothetical $10,000 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 Trust 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. All results include the reinvestment of income dividends and distributions. The results shown in the graph do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
67
Regency Fund Commentary (Unaudited)
Neuberger Berman Regency Fund Investor Class generated a 15.79% return for the fiscal year ended August 31, 2011, lagging its Russell Midcap® Value Index benchmark, which provided a 17.51% return for the period. (Performance for all share classes is provided in the table immediately following this letter.) The advance came despite substantial market volatility over the past few months.
Last year at about this time, investors were focused on an evolving European debt crisis and the lackluster U.S. economic recovery. Today, European sovereign debt problems are once again front page news and U.S. budget woes combined with a still soft labor market and weakening investor sentiment have investors questioning whether global and domestic economic growth is sustainable. We believe the global and U.S. economies can maintain a slow growth path and that economically sensitive stocks can rebound from their recent sell-off.
Health Care sector investments had the most positive impact this fiscal year on portfolio returns relative to the Russell Midcap Value Index. Leading drug distributor and pharmacy benefits manager AmerisourceBergen was the Fund's most significant performance contributor in the Health Care sector. Like most HMOs, Coventry continued to benefit from a reduction in health care procedures caused in large part by the weak economy. We believe this trend will continue as economic growth remains muted. The strong performance of Teck Resources, due in part to a temporary shortage in metallurgical coal resulting from major flooding in Australia, buoyed relative returns in the Materials sector. Consumer Discretionary sector investments also contributed to relative returns, with department store chain J.C. Penney, publisher McGraw-Hill, and retailer Limited among the best performers in the portfolio.
Other portfolio standouts this fiscal year include mining equipment manufacturer Bucyrus International, which was acquired at an attractive premium by Caterpillar (and sold from the portfolio), energy infrastructure design and engineering company Chicago Bridge & Iron, and motorcycle manufacturer Harley-Davidson.
Information Technology investments were the largest detractors to relative returns. Lender Processing Services, a company that provides software for large mortgage providers, became embroiled in legal actions relating to technical flaws in the foreclosure process. We believe that the mortgage processors are the primary culprits in this controversy and that Lender Processing Services will ultimately be vindicated. Consequently, we have maintained a position in this beaten-down security. NXP Semiconductors was also a drag on returns. NXP's debt level hurt was as leverage became a major negative in the market sell-off toward the end of the 12-month reporting period. Financial sector holdings also underperformed, most notably regional banks Regions Financial and Huntington Bancshares. We think the sell-off in regional banks is overdone and anticipate that those stocks could rebound. Although the Fund's Energy sector holdings delivered a mid-20% return, they lagged the corresponding benchmark sector component. Exploration and production companies Whiting Petroleum and Denbury Resources were among the laggards. We remain positive on the long-term outlook for energy prices and select energy securities.
Other performance laggards this fiscal year include retailer Aeropostale, a teen clothing retailer that experienced a major fashion "miss" causing it to discount inventory and lose customers to competitors such as Abercrombie & Fitch. We have not given up hope that this company can get back on the right track, but have eliminated our position and do not intend to establish a new one until we see evidence of some progress. U.S. Steel slid as steel prices weakened due to fears of a slowing global recovery. We sold the stock in favor of what we believe are better positioned Materials companies.
Looking ahead, while the macroeconomic outlook remains somewhat clouded and European sovereign debt issues bear close watching, we believe the global economy will remain on a slow growth path. Although the U.S. economy has slowed and sentiment indicators have turned negative, strong corporate balance sheets and modest valuations, especially relative to Treasury securities, present a positive case for equities. We remain comfortable with our sector exposures, and with our stocks, many of which now appear significantly undervalued based on our estimation of their long-term earnings potential and balance sheet strength. In general, we are still finding deeper value in cyclical rather than in defensive names, which appear more expensive relative to long-term growth potential.
68
In closing, we can never be sure what the economy and stock market have in store in the short run. However, we can and will remain dedicated to identifying conservatively financed, high quality companies trading at attractive discounts to normalized earnings power—a strategy we believe will continue to benefit Fund shareholders.
Sincerely,
S. Basu Mullick
Portfolio Manager
The risks involved in seeking capital appreciation from investments primarily in mid-cap stocks are set forth in the prospectus and statement of additional information.
Mid-capitalization stocks are more vulnerable to financial risks and other risks than stocks of larger companies. They also trade less frequently and in lower volume than larger company stocks, so their market prices tend to be more volatile.
The composition, industries and holdings of the Fund are subject to change.
69
Regency Fund (Unaudited)
TICKER SYMBOLS |
Investor Class | NBRVX | ||
Trust Class | NBREX | ||
Institutional Class | NBRTX | ||
Class A | NBRAX | ||
Class C | NBRCX | ||
Class R3 | NBRRX |
SECTOR ALLOCATION |
(as a % of Total Investments) | |||||
Consumer Discretionary | 13.9 | % | |||
Consumer Staples | 2.9 | ||||
Energy | 9.4 | ||||
Financials | 26.2 | ||||
Health Care | 10.4 | ||||
Industrials | 10.5 | ||||
Information Technology | 8.1 | ||||
Materials | 4.3 | ||||
Utilities | 10.7 | ||||
Short-Term Investments | 3.6 | ||||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS2,7 |
Average Annual Total Return Ended 08/31/2011 | |||||||||||||||||||
Inception Date | 1 Year | 5 Years | 10 Years | Life of Fund | |||||||||||||||
At NAV | |||||||||||||||||||
Investor Class | 06/01/1999 | 15.79 | % | 0.94 | % | 5.82 | % | 7.57 | % | ||||||||||
Trust Class4 | 06/10/1999 | 15.66 | % | 0.87 | % | 5.76 | % | 7.52 | % | ||||||||||
Institutional Class25 | 03/08/2010 | 16.26 | % | 1.05 | % | 5.88 | % | 7.62 | % | ||||||||||
Class A24 | 06/21/2010 | 15.70 | % | 0.94 | % | 5.83 | % | 7.57 | % | ||||||||||
Class C24 | 06/21/2010 | 14.92 | % | 0.76 | % | 5.73 | % | 7.50 | % | ||||||||||
Class R324 | 06/21/2010 | 15.46 | % | 0.88 | % | 5.79 | % | 7.54 | % | ||||||||||
With Sales Charge | |||||||||||||||||||
Class A24 | 9.06 | % | –0.25 | % | 5.20 | % | 7.05 | % | |||||||||||
Class C24 | 13.92 | % | 0.76 | % | 5.73 | % | 7.50 | % | |||||||||||
Index | |||||||||||||||||||
Russell Midcap® Value Index1,18 | 17.51 | % | 1.36 | % | 7.50 | % | 7.13 | % | |||||||||||
Russell Midcap® Index1,18 | 21.28 | % | 2.99 | % | 7.16 | % | 6.62 | % |
Performance data quoted represent past performance and do not indicate future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Results are shown on a "total return" basis and include reinvestment of all income dividends and distributions.
Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2010 were 1.25%, 1.43%, 1.04%, 1.32%, 2.07% and 1.57% for Investor Class, Trust Class, Institutional Class, Class A, Class C and Class R3 shares, respectively (prior to any fee waivers and/or expense reimbursements, if any). The expense ratios net of waivers and/or reimbursements were 1.26%, 0.86%, 1.22%, 1.97% and 1.47% for Trust Class, Institutional Class, Class A, Class C and Class R3 shares, respectively. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through August 31, 2021 for Investor Class and Trust Class shares and through August 31, 2014 for Institutional Class, Class A, Class C and Class R3 shares.
Total 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.
The results shown in the table do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares.
70
Regency Fund (Unaudited)
COMPARISON OF A $10,000 INVESTMENT |
This graph shows the change in value of a hypothetical $10,000 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 Investor 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. All results include the reinvestment of income dividends and distributions. The results shown in the graph do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
71
Select Equities Fund Commentary (Unaudited)
Neuberger Berman Select Equities Fund Class A generated an 18.15% total return at NAV for the fiscal year ended August 31, 2011, compared with its benchmark, the S&P 500 Index, which provided an 18.50% return for the period. (Performance for all share classes is provided in the table immediately following this letter.) In a fiscal year marked by extraordinary volatility and economic uncertainty, we are pleased to have been able to deliver market-like returns with less volatility than the broader market.
When this reporting period began last fall, Federal Reserve Chairman Bernanke's announcement of a second round of quantitative easing (QE2) aimed at stimulating economic growth had triggered a strong rally of risk assets, particularly in the more cyclical areas of the equity market. This rally, while volatile, essentially continued through late spring 2011. However, by June, economic data shifted dramatically downward, highlighting a deceleration of U.S. economic growth.
For more than two years, we have stated our belief that the shape of the economic recovery would resemble the image of the Nike "swoosh" symbol, and that description has been accurate thus far. From our perspective, at the beginning calendar-year 2011, economic growth rates were more positive than the trend line we had been forecasting. At that time most economists were predicting a strong year in terms of GDP growth. Statistics now suggest to us that the trend line could be even weaker than the "swoosh" trajectory would indicate.
From a portfolio positioning perspective, beginning around June 2010 through the calendar year-end, the portfolio was invested heavily in both global franchise names and cyclical securities, which allowed us to participate in the market's upward movement during that time period. As QE2 was initiated during the fall of 2010 and early 2011, its implementation drove cyclical and industrial stocks significantly higher. The Fund's exposure to cyclicals peaked by March 2011.
From late April 2011 through the end of this reporting period, the market declined as investors reacted to 1) worsening economic data from both the U.S. and the eurozone, 2) political issues including the prolonged U.S. debt ceiling debate and 3) uncertainty over the direction European leaders would take to confront and contain their serious debt problems, as well as other issues.
During this time, we began reducing our exposure to the more cyclical Industrials, Materials and Energy sectors. As a result of our analysis of predictive economic data, first hand company meetings and market research, we reallocated assets toward more defensive areas and cash-equivalent securities. Generally speaking, in our move away from cyclical exposure, we did not significantly increase our allocations to more equity income securities as we had done in the past, but instead added to the cash portion of the portfolio given our concerns about valuations in some segments of the market.
At the beginning of this period, approximately 7% of portfolio assets were in cash. At its peak, the cash position was above 30%, and, as we close this period, our cash position is around 20%. Despite our concerns, however, we continue to look for companies that meet our investment criteria and that we believe can thrive given our economic outlook, and, as such, we added carefully selected securities during the period. For example, we increased our exposure to Consumer Discretionary stocks, but with specialized opportunities in areas including automotive components and media rather than directly cyclical areas such as retail or travel. We believe these specific investments have long-term secular trends that will benefit their growth and are somewhat masked by the cyclical nature of the industries in which they operate.
In managing a focused strategy that is not tied to the benchmark, we are able to avoid areas we consider particularly difficult. Compared with the benchmark, the Fund ended the period underweighted in Financials, Information Technology and Health Care stocks. We currently remain overweighted in Materials, and, to a smaller extent, are overweighted in Telecommunication Services.
Portfolio turnover this period was relatively high as a result of raising cash at times and changing the underlying mix of the stocks in the portfolio. With the rapid changes in the economic environment, we sold several of our top-performing holdings as well as some disappointments as part of our move to a more conservative positioning.
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We continue to maintain a defensive posture, holding significant cash within the portfolio because of the ongoing uncertainty we foresee. As far as economic growth is concerned, while we are not seeing signs that necessarily point toward another recession, we do believe growth will be moderate. This is consistent with the conservative viewpoint we have had since the Fund's inception in 2008. While corporate earnings for the most part have remained resilient, we believe that without underlying economic growth, earnings estimates may have to be reviewed due to the deceleration in the economy. This could cause a major headwind for the market over the next year.
Sincerely,
Gerald Kaminsky, Michael Kaminsky and Richard Werman
Portfolio Co-Managers
The risks involved in seeking capital appreciation from investments primarily in companies of mid- and large capitalization are set forth in the prospectus and statement of additional information.
To the extent that the Fund emphasizes mid- or large-cap stocks, it takes on the associated risks. Mid-cap stocks tend to be more volatile than large-cap stocks and are usually more sensitive to economic, political, regulatory and market factors. At any given time, one or both groups of stocks may be out of favor with investors.
The composition, industries and holdings of the Fund are subject to change.
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Select Equities Fund (Unaudited)
TICKER SYMBOLS |
Institutional Class | NBEIX | ||
Class A | NBEAX | ||
Class C | NBECX |
SECTOR ALLOCATION |
(as a % of Total Investments) | |||||
Consumer Discretionary | 12.0 | % | |||
Energy | 12.2 | ||||
Financials | 4.4 | ||||
Health Care | 2.7 | ||||
Industrials | 14.4 | ||||
Information Technology | 9.9 | ||||
Materials | 12.7 | ||||
Telecommunication Services | 6.8 | ||||
Utilities | 4.9 | ||||
Short-Term Investments | �� | 20.0 | |||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS2 |
Average Annual Total Return Ended 08/31/2011 | |||||||||||
Inception Date | 1 Year | Life of Fund | |||||||||
At NAV | |||||||||||
Institutional Class | 12/20/2007 | 18.62 | % | –0.98 | % | ||||||
Class A | 12/20/2007 | 18.15 | % | –1.26 | % | ||||||
Class C | 12/20/2007 | 17.29 | % | –1.99 | % | ||||||
With Sales Charge | |||||||||||
Class A | 11.37 | % | –2.83 | % | |||||||
Class C | 16.29 | % | –1.99 | % | |||||||
Index | |||||||||||
S&P 500 Index1,18 | 18.50 | % | –2.50 | % |
Performance data quoted represent past performance and do not indicate future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Results are shown on a "total return" basis and include reinvestment of all income dividends and distributions.
Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2010 were 1.24%, 1.62% and 2.37% for Institutional Class, Class A and Class C shares, respectively (prior to any fee waivers and/or expense reimbursements, if any). The expense ratios net of waivers and/or reimbursements were 0.77%, 1.22% and 1.97% for Institutional Class, Class A and Class C shares, respectively. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through August 31, 2014 for Institutional Class, Class A and Class C shares.
Total 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.
The results shown in the table do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares.
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Select Equities Fund (Unaudited)
COMPARISON OF A $10,000 INVESTMENT (WITH SALES CHARGE) |
This graph shows the change in value of a hypothetical $10,000 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 Class A 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. All results include the reinvestment of income dividends and distributions. The results shown in the graph do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
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Small Cap Growth Fund Commentary (Unaudited)
Neuberger Berman Small Cap Growth Fund Investor Class generated a 29.68% total return for the fiscal year ended August 31, 2011, outperforming its benchmark, the Russell 2000® Growth Index, which provided a 27.54% return. (Performance for all share classes is provided in the table immediately following this letter.)
The past fiscal year has been a roller coaster of market activity, emotions and "risk on/risk off" sentiments. We saw the implementation and winding down of the Federal Reserve's second round of quantitative easing, or QE2, the debt-ceiling political skirmish and the U.S. credit downgrade and a continued cycle of optimism and regression around Europe's debt contagion. More recently, economic indicators and sentiment have turned negative creating an aura of pessimism around the global economy and the pace of the U.S. recovery.
On a positive note, the stylistic headwinds we encountered in 2009 and 2010 have abated. Higher beta (performance tied to overall market results) and a disregard for risk have been replaced with a focus on fundamentals and consistency, more in tune with our investment approach.
Over the last 12 months every industry sector within the portfolio delivered positive returns, with the Industrials, Health Care and Energy sectors being the top contributors to the Fund's relative performance. Within Industrials, significant contributors to performance were Heico and Polypore. Heico, a manufacturer of FAA-approved engine and component replacement parts, continues to benefit from a recovery in aviation. Polypore, a manufacturer of specialized membranes used in lithium batteries, has benefited from the continued growth in the demand of smart phones and tablets.
Positive stock selection in Health Care was lead by Alexion Pharmaceuticals, a company specializing in therapies for rare and life threatening diseases. Alexion continued to benefit from the international rollout of Solaris. We fully realized our valuation target for the stock and sold the position as a result.
Within Energy, Rosetta Resources and Brigham Exploration, on-shore oil and natural gas exploration and production companies, were the top contributors to performance. Both benefited from the strength of oil prices and production growth.
Underperforming sectors within the portfolio included Information Technology (IT) and Consumer Discretionary. The top detractors within IT were Velti PLC and Sonic Solutions. Velti, a global provider of mobile marketing and advertising solutions, was negatively impacted by code compatibility issues with leading smart phone and tablet manufacturers, while Sonic Solutions, a digital media company, failed to gain critical mass in a very competitive space. We eliminated both holdings.
Detractors within Consumer Discretionary were Brunswick Corporation and MakeMyTrip. Brunswick, a designer, manufacturer and marketer of recreation products was weighed down by concerns over consumer spending. MakeMyTrip, an Indian online travel company, disappointed on a slower-than-expected expansion of online booking in India and we sold the position.
Based on our expectations for the remainder of 2011 and into 2012, we remain overweighted relative to the benchmark in Consumer Discretionary, Consumer Staples and IT and underweighted in Materials and Financials. We believe unique products and services can be catalysts for outperformance in a tough environment and our sector overweights reflect that belief. Inconsistent earnings in Materials and a lack of strong growth metrics in Financials have led us to an underweight in both these sectors.
As we look forward, we believe analyst expectations of the markets are likely to moderate, which should be a positive as we believe that they were too high and predicated on an overly optimistic view of the economy's recovery. While we expect strategic capital investment and M&A activity to continue, we believe that corporations are clearly looking for greater clarity on the economy, as well as on regulatory and tax issues out of Washington, before they substantially start allocating cash to expanding headcount. As a result, we think unemployment may remain stubbornly high for at least the near term. While commodity input costs have risen and we have seen food and gas price inflation impact a weakened consumer, we are not seeing broad inflation in our companies' financial reporting numbers and it is likely that a weaker market will serve to further correct those inflated commodity prices. With respect to monetary policy, we don't expect a third iteration of quantitative easing to be immediately implemented, however, continued weak economic indicators may force
76
the Federal Reserve into further monetary action. Regardless, we anticipate that we will see interest rates remaining low for the foreseeable future.
Despite a tougher-than-expected environment, we remain cautiously optimistic. Growth is still evident and small-cap valuations are now once again attractive. We continue to focus, as we always have, on identifying higher quality growth companies with innovative, new product cycles, exceptional top-line growth, and the management teams, operating models, and balance sheet strength needed to continue to succeed in a competitive global economy. Quality has historically shined when investors have been discriminating and mindful of risk. Given the current sentiment in the market and the potential for a scarcity of strong growth, we remain confident that now is the time to embrace higher quality.
Sincerely,
David H. Burstan
Portfolio Manager
The risks involved in seeking capital appreciation from investments primarily in companies with small-market capitalization are set forth in the prospectus and statement of additional information.
Small-capitalization stocks are more vulnerable to financial risks and other risks than larger stocks. They are generally less liquid than larger stocks, so their market prices tend to be more volatile.
The composition, industries and holdings of the Fund are subject to change.
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Small Cap Growth Fund (Unaudited)
TICKER SYMBOLS |
Investor Class | NBMIX | ||
Trust Class | NBMOX | ||
Advisor Class | NBMVX | ||
Institutional Class | NBSMX | ||
Class A | NSNAX | ||
Class C | NSNCX | ||
Class R3 | NSNRX |
SECTOR ALLOCATION |
(as a % of Total Investments) | |||||
Consumer Discretionary | 19.4 | % | |||
Consumer Staples | 6.4 | ||||
Energy | 8.0 | ||||
Financials | 6.1 | ||||
Health Care | 18.8 | ||||
Industrials | 15.8 | ||||
Information Technology | 24.5 | ||||
Short-Term Investments | 1.0 | ||||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS2,7,11 |
Average Annual Total Return Ended 08/31/2011 | |||||||||||||||||||
Inception Date | 1 Year | 5 Years | 10 Years | Life of Fund | |||||||||||||||
At NAV | |||||||||||||||||||
Investor Class | 10/20/1998 | 29.68 | % | 3.40 | % | 2.16 | % | 7.22 | % | ||||||||||
Trust Class4 | 11/03/1998 | 29.40 | % | 3.18 | % | 2.03 | % | 7.09 | % | ||||||||||
Advisor Class5 | 05/03/2002 | 29.13 | % | 2.96 | % | 1.91 | % | 7.02 | % | ||||||||||
Institutional Class6 | 04/01/2008 | 30.04 | % | 3.56 | % | 2.24 | % | 7.29 | % | ||||||||||
Class A20 | 05/27/2009 | 29.50 | % | 3.29 | % | 2.10 | % | 7.18 | % | ||||||||||
Class C20 | 05/27/2009 | 28.57 | % | 2.95 | % | 1.93 | % | 7.04 | % | ||||||||||
Class R320 | 05/27/2009 | 29.20 | % | 3.17 | % | 2.05 | % | 7.13 | % | ||||||||||
With Sales Charge | |||||||||||||||||||
Class A20 | 22.07 | % | 2.07 | % | 1.50 | % | 6.68 | % | |||||||||||
Class C20 | 27.57 | % | 2.95 | % | 1.93 | % | 7.04 | % | |||||||||||
Index | |||||||||||||||||||
Russell 2000® Growth Index1,18 | 27.54 | % | 3.59 | % | 4.89 | % | 5.37 | % | |||||||||||
Russell 2000® Index1,18 | 22.19 | % | 1.53 | % | 5.85 | % | 7.16 | % |
Performance data quoted represent past performance and do not indicate future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Results are shown on a "total return" basis and include reinvestment of all income dividends and distributions.
Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2010 were 1.51%, 1.71%, 1.91%, 1.28%, 2.06%, 3.44% and 4.17% for Investor Class, Trust Class, Advisor Class, Institutional Class, Class A, Class C and Class R3 shares, respectively (prior to any fee waivers and/or expense reimbursements, if any). The expense ratios net of waivers and/or reimbursements were 1.31%, 1.41%, 1.61%, 0.91%, 1.27%, 2.02% and 1.52% for Investor Class, Trust Class, Advisor Class, Institutional Class, Class A, Class C and Class R3 shares, respectively. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through August 31, 2021 for Investor Class, Trust Class and Advisor Class shares and through August 31, 2014 for Institutional Class, Class A, Class C and Class R3 shares.
Total 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.
The results shown in the table do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares.
78
Small Cap Growth Fund (Unaudited)
COMPARISON OF A $10,000 INVESTMENT |
This graph shows the change in value of a hypothetical $10,000 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 Investor 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. All results include the reinvestment of income dividends and distributions. The results shown in the graph do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
79
Socially Responsive Fund Commentary (Unaudited)
Neuberger Berman Socially Responsive Fund Investor Class generated a 19.74% total return for the fiscal year ended August 31, 2011, outperforming its benchmark, the S&P 500 Index, which provided an 18.50% return. (Performance for all share classes is provided in the table immediately following this letter.)
The past fiscal year started on the heels of a difficult spring and summer, when fears of a double-dip recession ran high. As economic data improved, the market enjoyed a strong three-quarter run. As we moved into summer 2011, however, the same set of fears seen last spring were replayed. With a second version of the Greek debt crisis, followed by a contentious U.S. debt ceiling debate, investors went from being encouraged by what seemed a healthy economy to experiencing worries over a potential recession.
Near the beginning of the fiscal year, we began adding to some of our favorite portfolio holdings, increasing weightings at what we believe were excellent valuations. The stock market rallied strongly, and, through the first half of fiscal year 2011, many of the names we had purchased at depressed levels last summer contributed positively to performance. Our performance is typically advantaged during slow-growth environments, as our quality focus identifies businesses that, in our opinion, can grow by gaining share in challenging economic times. For the first three-quarters of this reporting period, high-quality businesses outperformed, and their stocks were revalued accordingly. As a result, the Fund enjoyed a performance advantage over the market index.
Ironically, the environment at the end of the reporting period is similar to a year ago. Investor anxiety is high and many high-quality businesses are again priced for a recession. Following the early summer's Greek debt negotiations, investors sold indiscriminately and our holdings declined with the market regardless of the advantages we believe they offer. Although the Fund lost some of its "lead," we closed the year ahead of the benchmark.
In our opinion, when the market does not discriminate, this creates opportunity. We have now seen the good thrown out with the bad three times in three years. During the first two periods, we actively bought businesses that, in our opinion, had previously been too richly valued as stocks. This time, we felt very well positioned already, and yet we also were able to buy two names that had been on our prospect list for years.
Google's disappointing earnings, driven by a decision to invest toward future growth, allowed us to introduce a position in the company, which is known for exceptional workplace practices and employee satisfaction. In fact, Google consistently ranks near the top of Fortune's "100 Best Companies to Work For" list.
As a result of a merger deal that Wall Street did not like, we were able to initiate a position in Ecolab. Ecolab, which provides sanitizing and pest control products, as well as food service equipment and food safety services to various industries, has, in our view, predictability, strong free cash flow, and great secular growth opportunities associated with consumer staples companies, with the added advantage of controlling distribution. Ecolab helps customers maximize environmental, health and safety performance and has appeared on Newsweek's "Greenest Companies in America" list for its leadership in pollution prevention.
Within the portfolio, several of our top contributors, including Altera, BG Group and Covidien, performed well in the first three quarters of the reporting period, but gave up some ground more recently. MasterCard benefited performance throughout the period. We bought MasterCard during last summer's weakness and amid concerns about prospective rules on debit processing fees. A year later, we believe the business remains very strong under a new CEO, and the stock performed well through the downturn. W.W. Grainger is another stock that held up well. W.W. Grainger reports sales numbers on a monthly basis, and as fears of recession have increased, stable, frequent revenue reports are helpful.
On the negative side, Hospira, a leading specialty injectable drug company, was our weakest performer. We view Hospira as part of the solution to controlling health care costs and consider it an attractive business for the longer term. The stock declined this period as the company's response to FDA-cited manufacturing issues has been slow and costly. The insurer Progressive was another disappointment. A defensive business, the stock was largely overlooked during the rally, even
80
though it is managed well, growing, and taking market share. We like the company, and think an innovative new usage-based auto insurance product called Snapshot could prove to be disruptive to its competition.
There has been enormous fear that market volatility and negative sentiment will spill into the economy, weakening spending. So far that hasn't happened. High frequency statistics—like credit card processing volumes, same store sales, and industrial distributors' revenues—remain relatively positive. However, statistics with more long-term significance reflect more uncertainty. In August, business and consumer sentiment and intentions surveys fell dramatically, and hints of companies delaying decisions are evident in reduced goods orders for fall and holiday delivery, lower transportation utilization rates, and softening in electronic components orders.
Our view is that, as long as Europe doesn't deteriorate into a full crisis situation, the factors that could cause a recession are not present. While the debt problem creates uncertainty and is likely to lead to continued slow growth, we anticipate high-quality companies like those in the Fund to continue to be advantaged, and, barring a broader problem out of Europe, we are optimistic for the intermediate to long term.
Sincerely,
Arthur Moretti and Ingrid S. Dyott
Portfolio Co-Managers
The risks involved in seeking capital appreciation from investments in mid- to large-cap stocks that meet the Fund's financial criteria and social policy are set forth in the prospectus and statement of additional information.
Mid-capitalization stocks are more vulnerable to financial risks and other risks than larger stocks. They are generally less liquid than larger stocks, so their market prices tend to be more volatile. Large-cap stocks are subject to all the risks of stock market investing, including the risk that they may lose value.
The Fund's social policy could cause it to underperform similar funds that do not have a social policy. The composition, industries and holdings of the Fund are subject to change.
81
Socially Responsive Fund (Unaudited)
TICKER SYMBOLS |
Investor Class | NBSRX | ||
Trust Class | NBSTX | ||
Institutional Class | NBSLX | ||
Class A | NRAAX | ||
Class C | NRACX | ||
Class R3 | NRARX |
SECTOR ALLOCATION |
(as a % of Total Investments) | |||||
Consumer Discretionary | 9.0 | % | |||
Consumer Staples | 8.6 | ||||
Energy | 13.1 | ||||
Financials | 11.3 | ||||
Health Care | 14.2 | ||||
Industrials | 14.1 | ||||
Information Technology | 21.0 | ||||
Materials | 6.2 | ||||
Short-Term Investments | 2.5 | ||||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS2,7 |
Average Annual Total Return Ended 08/31/2011 | |||||||||||||||||||
Inception Date | 1 Year | 5 Years | 10 Years | Life of Fund | |||||||||||||||
At NAV | |||||||||||||||||||
Investor Class | 03/16/1994 | 19.74 | % | 2.11 | % | 5.57 | % | 8.06 | % | ||||||||||
Trust Class4 | 03/03/1997 | 19.60 | % | 1.92 | % | 5.36 | % | 7.88 | % | ||||||||||
Institutional Class6 | 11/28/2007 | 19.98 | % | 2.24 | % | 5.63 | % | 8.10 | % | ||||||||||
Class A20 | 05/27/2009 | 19.54 | % | 2.04 | % | 5.53 | % | 8.04 | % | ||||||||||
Class C20 | 05/27/2009 | 18.63 | % | 1.68 | % | 5.35 | % | 7.93 | % | ||||||||||
Class R320 | 05/27/2009 | 19.20 | % | 1.91 | % | 5.47 | % | 8.00 | % | ||||||||||
With Sales Charge | |||||||||||||||||||
Class A20 | 12.66 | % | 0.84 | % | 4.91 | % | 7.67 | % | |||||||||||
Class C20 | 17.63 | % | 1.68 | % | 5.35 | % | 7.93 | % | |||||||||||
Index | |||||||||||||||||||
S&P 500 Index1,18 | 18.50 | % | 0.78 | % | 2.70 | % | 7.66 | % |
Performance data quoted represent past performance and do not indicate future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Results are shown on a "total return" basis and include reinvestment of all income dividends and distributions.
Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2010 were 0.95%, 1.13%, 0.77%, 1.21%, 1.99% and 2.96% for Investor Class, Trust Class, Institutional Class, Class A, Class C and Class R3 shares, respectively (prior to any fee waivers and/or expense reimbursements, if any). The expense ratios net of waivers and/or reimbursements were 0.75%, 1.11%, 1.86% and 1.36% for Institutional Class, Class A, Class C and Class R3 shares, respectively. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through August 31, 2014 for Institutional Class, Class A, Class C and Class R3 shares.
Total 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.
The results shown in the table do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares.
82
Socially Responsive Fund (Unaudited)
COMPARISON OF A $10,000 INVESTMENT |
This graph shows the change in value of a hypothetical $10,000 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 Investor 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. All results include the reinvestment of income dividends and distributions. The results shown in the graph do not reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
83
Endnotes (Unaudited) | |
1 | Please see "Glossary of Indices" starting on page 88 for a description of indices. Please note that indices do not take into account any fees and 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 these indices are prepared or obtained by Neuberger Berman Management LLC ("Management") and include reinvestment of all income dividends and distributions. The Fund may invest in securities not included in the described indices and may not invest in all securities included in the described indices. |
2 | Expense Caps or Waivers: These arrangements are subject to change. The total returns for these periods may have been less if Management had not reimbursed and/or waived certain operating expenses. Please see the notes to the financial statements for specific information regarding which Funds and which classes currently have a portion of their operating expenses reimbursed and/or waived by Management. |
3 | This date reflects when Management first became investment advisor to the Fund. |
4 | For each of Focus Fund, Genesis Fund, Guardian Fund, Mid Cap Growth Fund and Partners Fund, Life of Fund performance shown for the Advisor Class and the Trust Class is that of the respective Fund's Investor Class from the inception date of the Investor Class to the inception date of the Advisor Class or the Trust Class. For each of International Fund, Regency Fund, Small Cap Growth Fund and Socially Responsive Fund, Life of Fund performance shown for the Trust Class is that of the respective Fund's Investor Class from the inception date of the Investor Class to the inception date of the Trust Class. The Investor Class of a Fund has lower expenses and typically higher returns than the Advisor Class, as applicable, and the Trust Class of that Fund. |
5 | Performance shown prior to May 2002 for the Advisor Class of Small Cap Growth Fund is that of the Fund's Investor Class. The Investor Class has lower expenses and typically higher returns than the Advisor Class. |
6 | Performance shown prior to July 1999 for the Institutional Class of Genesis Fund, prior to June 2006 for the Institutional Class of Partners Fund, prior to April 2007 for the Institutional Class of Mid Cap Growth Fund, prior to November 2007 for the Institutional Class of Socially Responsive Fund and prior to April 2008 for the Institutional Class of Small Cap Growth Fund is that of the respective Fund's Investor Class. Performance shown prior to October 2006 for the Institutional Class of International Large Cap Fund and prior to June 2008 for the Institutional Class of Real Estate Fund is that of the respective Fund's Trust Class. The Investor Class or Trust Class of a Fund, as applicable, has higher expenses and typically lower returns than the Institutional Class of that Fund. |
7 | The investments for the Fund are managed by the same portfolio manager(s) who manage(s) one or more other registered funds that have similar names, investment objectives, and investment styles as the Fund. You should be aware that the Fund is likely to differ from the other mutual funds in size, cash flow pattern and tax matters. Accordingly, the holdings and performance can be expected to vary from those of the other mutual funds. |
8 | The Fund had a policy of investing mainly in large-cap stocks prior to September 1998 and investing 90% of its assets in no more than six economic sectors prior to December 17, 2007. As of April 2, 2001, the Fund changed its investment policy to become "non-diversified" under the Investment Company Act of 1940. Performance prior to these changes might have been different if current policies had been in effect. As a result of becoming "non-diversified," the Fund can invest a greater percentage of assets in any single security. This practice could increase the risk of investing in the Fund because it may own fewer securities. While the Fund's value-oriented approach is intended to limit risks, the Fund, with its concentration in a limited number of securities, may be more affected by any single economic, political or regulatory development than a more diversified mutual fund. |
9 | Each of Emerging Markets Equity Fund, Equity Income Fund, Global Equity Fund, Large Cap Value Fund and Multi-Cap Opportunities Fund was relatively small prior to September 2010, June 2008, August 2011, August 2011 and January 2010, respectively. The same techniques used to produce returns in a small fund may not work to produce similar returns in a larger fund. |
84
Endnotes (Unaudited) (cont'd) | |
10 | Prior to December 17, 2007, Mid Cap Growth Fund was known as the Manhattan Fund. |
11 | Prior to December 17, 2007, Small Cap Growth Fund was known as the Millennium Fund. |
12 | Performance shown prior to June 21, 2010 for Emerging Markets Equity Fund's Class R3 is that of Emerging Markets Equity Fund's Institutional Class. The performance information of Class R3 has not been adjusted to take into account differences in class specific operating expenses. The Institutional Class has lower expenses and typically higher returns than Class R3. |
13 | As of December 17, 2007, the Fund changed its investment policy to become "non-diversified" under the Investment Company Act of 1940. Performance prior to this change might have been different if current policies had been in effect. As a result of becoming "non-diversified," the Fund can invest a greater percentage of assets in any single security. This practice could increase the risk of investing in the Fund because it may own fewer securities. Although the Fund has a policy that allows it to operate as a non-diversified investment company, on December 5, 2008, the Board adopted a policy, which cannot be changed without a shareholder vote, that the Fund will invest its portfolio so as to meet the standards of a diversified investment company. |
14 | Because the Fund had a policy of investing mainly in large-cap stocks prior to December 2002, its performance during that time might have been different if current policies had been in effect. |
15 | Because the Fund had a policy of investing primarily in mid- and large-cap stocks prior to September 1998, its performance during that time might have been different if current policies had been in effect. |
16 | During the period from November 2, 2006 through June 9, 2008, the Fund's Trust Class had only one investor, which could have impacted Fund performance. The inception date for the Fund's Institutional Class, Class A and Class C shares was June 9, 2008 and the inception date for the Fund's Class R3 shares was June 21, 2010. Performance shown for Institutional Class, Class A, Class C and Class R3 prior to those dates is that of the Trust Class, which had an inception date of November 2, 2006, and converted into the Institutional Class and ceased operations on June 9, 2008. The performance of Class R3 also includes that of Institutional Class from June 9, 2008 to June 21, 2010. The performance information of the Trust Class has been adjusted to reflect the appropriate sales charges applicable to Class A and Class C shares, but has not been adjusted to take into account differences in class specific operating expenses (such as Rule 12b-1 fees). The Trust Class had lower expenses and typically higher returns than Class A, Class C and Class R3. The Trust Class had moderately higher expenses and typically slightly lower returns than Institutional Class. The Institutional Class has lower expenses and typically higher returns than Class R3. |
17 | Performance shown prior to December 20, 2007 for Class A and Class C and prior to May 27, 2009 for Class R3 of International Large Cap Fund, and prior to June 21, 2010 for Class A, Class C and Class R3 of Real Estate Fund is that of the respective Fund's Trust Class. The performance information of the Trust Class has been adjusted to reflect the appropriate sales charges applicable to Class A and Class C shares, but has not been adjusted to take into account differences in class specific operating expenses (such as Rule 12b-1 fees). The Trust Class of a Fund has lower expenses and typically higher returns than Class A, Class C or Class R3 of that Fund. |
18 | The date used to calculate Life of Fund performance for the index is the inception date of the oldest share class. |
19 | Prior to April 9, 2009, Large Cap Disciplined Growth Fund was known as Century Fund. The inception dates are April 6, 2009 for the Fund’s Class A, Class C and Institutional Class and May 27, 2009 for the Fund’s Class R3. Performance shown prior to May 27, 2009 for Class R3, and prior to April 6, 2009 for Institutional Class, Class A and Class C, of is that of the Investor Class. The performance information of the Investor Class has been adjusted to reflect the appropriate sales charges applicable to Class A and Class C shares, but has not been adjusted to take into account differences in class specific operating expenses (such as Rule 12b-1 fees). The Investor Class has lower |
85
Endnotes (Unaudited) (cont'd) | |
expenses and typically higher returns than Class A, Class C or Class R3. The Investor Class has higher expenses and typically lower returns than Institutional Class. | |
20 | Performance shown prior to May 27, 2009 for Class A, Class C and Class R3 of Guardian Fund, Mid Cap Growth Fund, Small Cap Growth Fund and Socially Responsive Fund is that of the respective Fund's Investor Class. The performance information of the Investor Class has been adjusted to reflect the appropriate sales charges applicable to Class A and Class C shares, but has not been adjusted to take into account differences in class specific operating expenses (such as Rule 12b-1 fees). The Investor Class of a Fund has lower expenses and typically higher returns than Class A, Class C or Class R3 of that Fund. |
21 | Performance shown prior to May 27, 2009 for Institutional Class of Guardian Fund, and prior to June 21, 2010 for Institutional Class of Focus Fund is that of the respective Fund's Investor Class. The performance information of Investor Class has not been adjusted to take into account differences in class specific operating expenses. The Investor Class of a Fund has higher expenses and typically lower returns than the Institutional Class of that Fund. |
22 | During the period from November 2, 2006 through December 21, 2009, the Fund's Trust Class had only one investor, which could have impacted fund performance. The inception date for the Fund's Class A, Class C and Institutional Class shares was December 21, 2009. Performance shown for Class A, Class C and Institutional Class prior to that date is that of the Trust Class, which had an inception date of November 2, 2006, and converted into the Institutional Class and ceased operations on December 21, 2009. Management had previously capped Trust Class expenses; absent this arrangement, the returns would have been lower. The Trust Class had lower capped expenses and typically higher returns than Class A and Class C shares. The Trust Class had equivalent capped expenses and, therefore, typically similar returns to the Institutional Class. The performance information of the Trust Class has been adjusted to reflect the appropriate sales charges applicable to Class A and Class C shares, but has not been adjusted to take into account differences in class specific operating expenses (such as Rule 12b-1 fees). |
23 | The inception date for Intrinsic Value Fund Class A, Class C and Institutional Class shares is May 10, 2010. Performance shown prior to that date is that of the Fund's predecessor, the DJG Small Cap Value Fund L.P., an unregistered limited partnership ("DJG Fund"); DJG Fund was the successor to The DJG Small Cap Value Fund, an unregistered commingled investment account ("DJG Account"). The performance from September 12, 2008 is that of DJG Fund and the performance from July 8, 1997 (the Fund's commencement of operations) to September 11, 2008 is that of DJG Account. On May 10, 2010, the DJG Fund transferred its assets to the Fund in exchange for the Fund's Institutional Class shares. The investment policies, objectives, guidelines and restrictions of the Fund are in all material respects equivalent to those of DJG Fund and DJG Account (the "Predecessors"). As a mutual fund registered under the Investment Company Act of 1940, the Fund is subject to certain restrictions under the 1940 Act and the Internal Revenue Code to which the Predecessors were not subject. Had the Predecessors been registered under the 1940 Act and been subject to the provisions of the 1940 Act and the Code, its investment performance may have been adversely affected. The performance information reflects the actual expenses of the Predecessors. |
24 | Performance shown prior to June 21, 2010 for Class A and Class C of Focus Fund and Class A, Class C and Class R3 of Partners Fund and Regency Fund is that of the respective Fund's Investor Class. The performance information of the Investor Class has been adjusted to reflect the appropriate sales charges applicable to Class A and Class C shares, but has not been adjusted to take into account differences in class specific operating expenses (such as Rule 12b-1 fees). The Investor Class of a Fund has lower expenses and typically higher returns than Class A, Class C or Class R3 of that Fund. |
25 | Performance shown prior to March 8, 2010 for Institutional Class of Regency Fund is that of the Fund's Investor Class. The performance information of the Investor Class has not been adjusted to take into account differences in class specific operating expenses. The Investor Class has higher expenses and typically lower returns than the Institutional Class. |
86
Endnotes (Unaudited) (cont'd) | |
26 | Performance shown prior to December 20, 2010 for Class A and Class C of International Fund is that of the Fund's Investor Class. The performance information of the Investor Class has been adjusted to reflect the appropriate sales charges applicable to Class A and Class C shares, but has not been adjusted to take into account differences in class specific operating expenses (such as Rule 12b-1 fees). The Investor Class has lower expenses and typically higher returns than Class A or Class C. |
27 | During the period from November 2, 2006 through April 19, 2010, the Fund's Trust Class had only one investor, which could have impacted Fund performance. The inception date for the Fund's Institutional Class was April 19, 2010, and the Fund had only one Institutional Class investor, which could have impacted performance. The inception date for the Fund's Class A and Class C was March 2, 2011. Performance shown for Institutional Class, Class A and Class C prior to those dates is that of the Trust Class, which had an inception date of November 2, 2006, and the Trust Class converted into the Institutional Class and ceased operations on April 19, 2010. The performance of Class A and Class C also includes that of Institutional Class from April 19, 2010 to March 2, 2011. The performance information of the Trust Class and the Institutional Class has been adjusted to reflect the appropriate sales charges applicable to Class A and Class C shares, but has not been adjusted to take into account differences in class specific operating expenses (such as Rule 12b-1 fees). The Trust Class had moderately higher expenses and therefore typically slightly lower returns than Institutional Class, Class A and Class C. The Institutional Class has lower expenses and typically higher returns than Class A and Class C. |
For more complete information on any of the Neuberger Berman Equity Funds, call Neuberger Berman Management LLC at (800) 877-9700, or visit our website at www.nb.com. | |
87
Glossary of Indices (Unaudited)
S&P 500 Index: | The S&P 500 Index is 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. | ||
Russell 1000® Index: | Measures the performance of the 1,000 largest companies in the Russell 3000® Index (which measures the performance of the 3,000 largest U.S. companies based on total market capitalization and current index membership). The Russell 1000 Index represents approximately 92% of the U.S. market. | ||
Russell 1000® Value Index: | Measures the performance of those Russell 1000® Index companies with lower price-to-book ratios and lower expected growth rates. | ||
Russell 1000® Growth Index: | Measures the performance of those Russell 1000® Index companies with higher price-to-book ratios and higher forecasted growth rates. | ||
Russell 2000® Index: | An unmanaged index consisting of securities of the 2,000 issuers having the smallest capitalization in the Russell 3000® Index, representing approximately 10% of the Russell 3000 Index total market capitalization. As of the latest reconstitution, the smallest company's market capitalization was approximately $130 million. | ||
Russell 2000® Growth Index: | Measures the performance of those Russell 2000® Index companies with higher price-to-book ratios and higher forecasted growth rates. | ||
Russell 2000® Value Index: | Measures the performance of those Russell 2000® Index companies with lower price-to-book ratios and lower forecasted growth rates. | ||
Russell Midcap® Index: | Measures the performance of the approximately 800 smallest companies in the Russell 1000® Index. The Russell Midcap Index represents approximately 31% of the Russell 1000® Index total market capitalization. | ||
Russell Midcap® Growth Index: | An unmanaged index that measures the performance of those Russell Midcap® Index companies (the approximately 800 smallest companies in the Russell 1000® Index) with higher price-to-book ratios and higher forecasted Index growth rates. | ||
Russell Midcap® Value Index: | An unmanaged index that measures the performance of those Russell Midcap® Index companies (the approximately 800 smallest companies in the Russell 1000® Index) with lower price-to-book ratios and lower forecasted Index growth rates. | ||
FTSE NAREIT All Equity REITs Index: (formerly, FTSE NAREIT Equity REITs Index) | An unmanaged free float-adjusted market capitalization weighted index that tracks the performance of all Equity REITs currently listed on the New York Stock Exchange, the NASDAQ National Market System and the NYSE Amex. REITs are classified as Equity REITs if 75% or more of their gross invested book assets are invested directly or indirectly in real property. | ||
MSCI EAFE® Index: | Also known as the Morgan Stanley Capital International Europe, Australasia, Far East Index. A free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada. As of May 27, 2010 the MSCI EAFE Index consisted of the following 22 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. | ||
88
Glossary of Indices (Unaudited) (cont'd)
MSCI Emerging Markets Index: | A free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. As of May 27, 2010 the MSCI Emerging Markets Index consisted of the following 21 emerging market country indices: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan,Thailand, and Turkey. | ||
MSCI World Index: | A free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. As of May 27, 2010 the MSCI World Index consisted 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. | ||
MSCI All Country World Index (ACWI): | A free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. As of May 27, 2010, the MSCI ACWI consists of 45 country indices comprising 24 developed and 21 emerging market country indices. The developed market country indices included are: 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. The emerging market country indices included are: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey. | ||
89
Information About Your Fund's Expenses (Unaudited)
These tables are designed to provide information regarding costs related to your investments. All mutual funds incur operating expenses, which include management fees, fees for administrative services and costs of shareholder reports, among others. The following examples are based on an investment of $1,000 made at the beginning of the six month period ended August 31, 2011 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 these funds 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 tables are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. 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.
90
Expense Information as of 8/31/11 (Unaudited)
Neuberger Berman Equity Funds | |||||||||||||||||||||||||||||||||
ACTUAL | HYPOTHETICAL (5% ANNUAL RETURN BEFORE EXPENSES)(4) | ||||||||||||||||||||||||||||||||
Beginning Account Value 3/1/11 | Ending Account Value 8/31/11 | Expenses Paid During the Period(1) 3/1/11 - 8/31/11 | Expense Ratio | Beginning Account Value 3/1/11 | Ending Account Value 8/31/11 | Expenses Paid During the Period(1) 3/1/11 - 8/31/11 | Expense Ratio | ||||||||||||||||||||||||||
Emerging Markets Equity Fund | |||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 921.80 | $ | 6.10 | 1.26 | % | $ | 1,000.00 | $ | 1,018.85 | $ | 6.41 | 1.26 | % | |||||||||||||||||
Class A | $ | 1,000.00 | $ | 921.00 | $ | 7.31 | 1.51 | % | $ | 1,000.00 | $ | 1,017.59 | $ | 7.68 | 1.51 | % | |||||||||||||||||
Class C | $ | 1,000.00 | $ | 917.50 | $ | 10.92 | 2.26 | % | $ | 1,000.00 | $ | 1,013.81 | $ | 11.47 | 2.26 | % | |||||||||||||||||
Class R3 | $ | 1,000.00 | $ | 918.90 | $ | 9.29 | 1.92 | % | $ | 1,000.00 | $ | 1,015.53 | $ | 9.75 | 1.92 | % | |||||||||||||||||
Equity Income Fund | |||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,003.70 | $ | 4.04 | .80 | % | $ | 1,000.00 | $ | 1,021.17 | $ | 4.08 | .80 | % | |||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,002.00 | $ | 5.85 | 1.16 | % | $ | 1,000.00 | $ | 1,019.36 | $ | 5.90 | 1.16 | % | |||||||||||||||||
Class C | $ | 1,000.00 | $ | 997.10 | $ | 9.61 | 1.91 | % | $ | 1,000.00 | $ | 1,015.58 | $ | 9.70 | 1.91 | % | |||||||||||||||||
Class R3 | $ | 1,000.00 | $ | 1,000.60 | $ | 7.11 | 1.41 | % | $ | 1,000.00 | $ | 1,018.10 | $ | 7.17 | 1.41 | % | |||||||||||||||||
Focus Fund | |||||||||||||||||||||||||||||||||
Investor Class | $ | 1,000.00 | $ | 898.70 | $ | 4.55 | .95 | % | $ | 1,000.00 | $ | 1,020.42 | $ | 4.84 | .95 | % | |||||||||||||||||
Trust Class | $ | 1,000.00 | $ | 897.80 | $ | 5.45 | 1.14 | % | $ | 1,000.00 | $ | 1,019.46 | $ | 5.80 | 1.14 | % | |||||||||||||||||
Advisor Class | $ | 1,000.00 | $ | 897.00 | $ | 6.22 | 1.30 | % | $ | 1,000.00 | $ | 1,018.65 | $ | 6.61 | 1.30 | % | |||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 899.30 | $ | 3.59 | .75 | % | $ | 1,000.00 | $ | 1,021.42 | $ | 3.82 | .75 | % | |||||||||||||||||
Class A | $ | 1,000.00 | $ | 897.60 | $ | 5.31 | 1.11 | % | $ | 1,000.00 | $ | 1,019.61 | $ | 5.65 | 1.11 | % | |||||||||||||||||
Class C | $ | 1,000.00 | $ | 894.40 | $ | 8.88 | 1.86 | % | $ | 1,000.00 | $ | 1,015.83 | $ | 9.45 | 1.86 | % | |||||||||||||||||
Genesis Fund | |||||||||||||||||||||||||||||||||
Investor Class | $ | 1,000.00 | $ | 974.70 | $ | 5.18 | 1.04 | % | $ | 1,000.00 | $ | 1,019.96 | $ | 5.30 | 1.04 | % | |||||||||||||||||
Trust Class | $ | 1,000.00 | $ | 974.40 | $ | 5.57 | 1.12 | % | $ | 1,000.00 | $ | 1,019.56 | $ | 5.70 | 1.12 | % | |||||||||||||||||
Advisor Class | $ | 1,000.00 | $ | 973.30 | $ | 6.91 | 1.39 | % | $ | 1,000.00 | $ | 1,018.20 | $ | 7.07 | 1.39 | % | |||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 975.80 | $ | 4.28 | .86 | % | $ | 1,000.00 | $ | 1,020.87 | $ | 4.38 | .86 | % | |||||||||||||||||
Global Equity Fund | |||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 910.00 | $ | 1.90 | (2) | 1.15 | % | $ | 1,000.00 | $ | 1,019.41 | $ | 5.85 | 1.15 | % | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 909.00 | $ | 2.49 | (2) | 1.51 | % | $ | 1,000.00 | $ | 1,017.59 | $ | 7.68 | 1.51 | % | ||||||||||||||||
Class C | $ | 1,000.00 | $ | 908.00 | $ | 3.72 | (2) | 2.26 | % | $ | 1,000.00 | $ | 1,013.81 | $ | 11.47 | 2.26 | % | ||||||||||||||||
Global Thematic Opportunities Fund | |||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 944.00 | $ | 2.10 | (2) | 1.25 | % | $ | 1,000.00 | $ | 1,018.90 | $ | 6.36 | 1.25 | % | ||||||||||||||||
Class A | $ | 1,000.00 | $ | 944.00 | $ | 2.70 | (2) | 1.61 | % | $ | 1,000.00 | $ | 1,017.09 | $ | 8.19 | 1.61 | % | ||||||||||||||||
Class C | $ | 1,000.00 | $ | 942.00 | $ | 3.96 | (2) | 2.36 | % | $ | 1,000.00 | $ | 1,013.31 | $ | 11.98 | 2.36 | % | ||||||||||||||||
Guardian Fund | |||||||||||||||||||||||||||||||||
Investor Class | $ | 1,000.00 | $ | 914.80 | $ | 4.39 | .91 | % | $ | 1,000.00 | $ | 1,020.62 | $ | 4.63 | .91 | % | |||||||||||||||||
Trust Class | $ | 1,000.00 | $ | 913.60 | $ | 5.21 | 1.08 | % | $ | 1,000.00 | $ | 1,019.76 | $ | 5.50 | �� | 1.08 | % | ||||||||||||||||
Advisor Class | $ | 1,000.00 | $ | 912.10 | $ | 7.23 | 1.50 | % | $ | 1,000.00 | $ | 1,017.64 | $ | 7.63 | 1.50 | % | |||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 915.50 | $ | 3.62 | .75 | % | $ | 1,000.00 | $ | 1,021.42 | $ | 3.82 | .75 | % | |||||||||||||||||
Class A | $ | 1,000.00 | $ | 913.40 | $ | 5.35 | 1.11 | % | $ | 1,000.00 | $ | 1,019.61 | $ | 5.65 | 1.11 | % | |||||||||||||||||
Class C | $ | 1,000.00 | $ | 909.70 | $ | 8.95 | 1.86 | % | $ | 1,000.00 | $ | 1,015.83 | $ | 9.45 | 1.86 | % | |||||||||||||||||
Class R3 | $ | 1,000.00 | $ | 912.50 | $ | 6.56 | 1.36 | % | $ | 1,000.00 | $ | 1,018.35 | $ | 6.92 | 1.36 | % | |||||||||||||||||
International Fund | |||||||||||||||||||||||||||||||||
Investor Class | $ | 1,000.00 | $ | 946.10 | $ | 7.11 | 1.45 | % | $ | 1,000.00 | $ | 1,017.90 | $ | 7.37 | 1.45 | % | |||||||||||||||||
Trust Class | $ | 1,000.00 | $ | 944.30 | $ | 8.58 | 1.75 | % | $ | 1,000.00 | $ | 1,016.38 | $ | 8.89 | 1.75 | % | |||||||||||||||||
Class A | $ | 1,000.00 | $ | 945.80 | $ | 8.04 | 1.64 | % | $ | 1,000.00 | $ | 1,016.94 | $ | 8.34 | 1.64 | % | |||||||||||||||||
Class C | $ | 1,000.00 | $ | 942.20 | $ | 11.36 | 2.32 | % | $ | 1,000.00 | $ | 1,013.51 | $ | 11.77 | 2.32 | % | |||||||||||||||||
International Institutional Fund | |||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 937.80 | $ | 3.91 | .80 | % | $ | 1,000.00 | $ | 1,021.17 | $ | 4.08 | .80 | % |
91
Expense Information as of 8/31/11 (Unaudited) cont'd
ACTUAL | HYPOTHETICAL (5% ANNUAL RETURN BEFORE EXPENSES)(4) | ||||||||||||||||||||||||||||||||
Beginning Account Value 3/1/11 | Ending Account Value 8/31/11 | Expenses Paid During the Period(1) 3/1/11 - 8/31/11 | Expense Ratio | Beginning Account Value 3/1/11 | Ending Account Value 8/31/11 | Expenses Paid During the Period(1) 3/1/11 - 8/31/11 | Expense Ratio | ||||||||||||||||||||||||||
International Large Cap Fund | |||||||||||||||||||||||||||||||||
Trust Class | $ | 1,000.00 | $ | 927.60 | $ | 6.07 | 1.25 | % | $ | 1,000.00 | $ | 1,018.90 | $ | 6.36 | 1.25 | % | |||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 928.60 | $ | 4.38 | .90 | % | $ | 1,000.00 | $ | 1,020.67 | $ | 4.58 | .90 | % | |||||||||||||||||
Class A | $ | 1,000.00 | $ | 927.20 | $ | 6.02 | 1.24 | % | $ | 1,000.00 | $ | 1,018.95 | $ | 6.31 | 1.24 | % | |||||||||||||||||
Class C | $ | 1,000.00 | $ | 923.50 | $ | 9.70 | 2.00 | % | $ | 1,000.00 | $ | 1,015.12 | $ | 10.16 | 2.00 | % | |||||||||||||||||
Class R3 | $ | 1,000.00 | $ | 925.10 | $ | 7.33 | 1.51 | % | $ | 1,000.00 | $ | 1,017.59 | $ | 7.68 | 1.51 | % | |||||||||||||||||
Intrinsic Value Fund | |||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 813.60 | $ | 4.57 | 1.00 | % | $ | 1,000.00 | $ | 1,020.16 | $ | 5.09 | 1.00 | % | |||||||||||||||||
Class A | $ | 1,000.00 | $ | 813.00 | $ | 6.21 | 1.36 | % | $ | 1,000.00 | $ | 1,018.35 | $ | 6.92 | 1.36 | % | |||||||||||||||||
Class C | $ | 1,000.00 | $ | 809.90 | $ | 9.63 | 2.11 | % | $ | 1,000.00 | $ | 1,014.57 | $ | 10.71 | 2.11 | % | |||||||||||||||||
Large Cap Disciplined Growth Fund | |||||||||||||||||||||||||||||||||
Investor Class | $ | 1,000.00 | $ | 923.70 | $ | 5.38 | 1.11 | % | $ | 1,000.00 | $ | 1,019.61 | $ | 5.65 | 1.11 | % | |||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 925.10 | $ | 3.64 | .75 | % | $ | 1,000.00 | $ | 1,021.42 | $ | 3.82 | .75 | % | |||||||||||||||||
Class A | $ | 1,000.00 | $ | 923.60 | $ | 5.38 | 1.11 | % | $ | 1,000.00 | $ | 1,019.61 | $ | 5.65 | 1.11 | % | |||||||||||||||||
Class C | $ | 1,000.00 | $ | 921.30 | $ | 9.01 | 1.86 | % | $ | 1,000.00 | $ | 1,015.83 | $ | 9.45 | 1.86 | % | |||||||||||||||||
Class R3 | $ | 1,000.00 | $ | 923.30 | $ | 6.59 | 1.36 | % | $ | 1,000.00 | $ | 1,018.35 | $ | 6.92 | 1.36 | % | |||||||||||||||||
Large Cap Value Fund | |||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 954.00 | $ | 3.74 | .76 | % | $ | 1,000.00 | $ | 1,021.37 | $ | 3.87 | .76 | % | |||||||||||||||||
Class A | $ | 1,000.00 | $ | 966.00 | $ | 5.52 | (3) | 1.12 | % | $ | 1,000.00 | $ | 1,019.56 | $ | 5.70 | 1.12 | % | ||||||||||||||||
Class C | $ | 1,000.00 | $ | 962.10 | $ | 9.20 | (3) | 1.87 | % | $ | 1,000.00 | $ | 1,015.78 | $ | 9.50 | 1.87 | % | ||||||||||||||||
Mid Cap Growth Fund | |||||||||||||||||||||||||||||||||
Investor Class | $ | 1,000.00 | $ | 972.20 | $ | 4.92 | .99 | % | $ | 1,000.00 | $ | 1,020.21 | $ | 5.04 | .99 | % | |||||||||||||||||
Trust Class | $ | 1,000.00 | $ | 972.30 | $ | 5.22 | 1.05 | % | $ | 1,000.00 | $ | 1,019.91 | $ | 5.35 | 1.05 | % | |||||||||||||||||
Advisor Class | $ | 1,000.00 | $ | 970.00 | $ | 7.35 | 1.48 | % | $ | 1,000.00 | $ | 1,017.74 | $ | 7.53 | 1.48 | % | |||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 973.50 | $ | 3.73 | .75 | % | $ | 1,000.00 | $ | 1,021.42 | $ | 3.82 | .75 | % | |||||||||||||||||
Class A | $ | 1,000.00 | $ | 971.70 | $ | 5.52 | 1.11 | % | $ | 1,000.00 | $ | 1,019.61 | $ | 5.65 | 1.11 | % | |||||||||||||||||
Class C | $ | 1,000.00 | $ | 968.10 | $ | 9.23 | 1.86 | % | $ | 1,000.00 | $ | 1,015.83 | $ | 9.45 | 1.86 | % | |||||||||||||||||
Class R3 | $ | 1,000.00 | $ | 970.70 | $ | 6.76 | 1.36 | % | $ | 1,000.00 | $ | 1,018.35 | $ | 6.92 | 1.36 | % | |||||||||||||||||
Multi-Cap Opportunities Fund | |||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 943.00 | $ | 4.90 | 1.00 | % | $ | 1,000.00 | $ | 1,020.16 | $ | 5.09 | 1.00 | % | |||||||||||||||||
Class A | $ | 1,000.00 | $ | 940.90 | $ | 6.65 | 1.36 | % | $ | 1,000.00 | $ | 1,018.35 | $ | 6.92 | 1.36 | % | |||||||||||||||||
Class C | $ | 1,000.00 | $ | 938.60 | $ | 10.31 | 2.11 | % | $ | 1,000.00 | $ | 1,014.57 | $ | 10.71 | 2.11 | % | |||||||||||||||||
Partners Fund | |||||||||||||||||||||||||||||||||
Investor Class | $ | 1,000.00 | $ | 849.90 | $ | 3.92 | .84 | % | $ | 1,000.00 | $ | 1,020.97 | $ | 4.28 | .84 | % | |||||||||||||||||
Trust Class | $ | 1,000.00 | $ | 849.20 | $ | 4.80 | 1.03 | % | $ | 1,000.00 | $ | 1,020.01 | $ | 5.24 | 1.03 | % | |||||||||||||||||
Advisor Class | $ | 1,000.00 | $ | 848.30 | $ | 5.50 | 1.18 | % | $ | 1,000.00 | $ | 1,019.26 | $ | 6.01 | 1.18 | % | |||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 850.60 | $ | 3.17 | .68 | % | $ | 1,000.00 | $ | 1,021.78 | $ | 3.47 | .68 | % | |||||||||||||||||
Class A | $ | 1,000.00 | $ | 848.60 | $ | 5.17 | 1.11 | % | $ | 1,000.00 | $ | 1,019.61 | $ | 5.65 | 1.11 | % | |||||||||||||||||
Class C | $ | 1,000.00 | $ | 845.50 | $ | 8.65 | 1.86 | % | $ | 1,000.00 | $ | 1,015.83 | $ | 9.45 | 1.86 | % | |||||||||||||||||
Class R3 | $ | 1,000.00 | $ | 847.60 | $ | 6.33 | 1.36 | % | $ | 1,000.00 | $ | 1,018.35 | $ | 6.92 | 1.36 | % | |||||||||||||||||
Real Estate Fund | |||||||||||||||||||||||||||||||||
Trust Class | $ | 1,000.00 | $ | 974.90 | $ | 4.93 | .99 | % | $ | 1,000.00 | $ | 1,020.21 | $ | 5.04 | .99 | % | |||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 976.50 | $ | 4.23 | .85 | % | $ | 1,000.00 | $ | 1,020.92 | $ | 4.33 | .85 | % | |||||||||||||||||
Class A | $ | 1,000.00 | $ | 973.90 | $ | 6.02 | 1.21 | % | $ | 1,000.00 | $ | 1,019.11 | $ | 6.16 | 1.21 | % | |||||||||||||||||
Class C | $ | 1,000.00 | $ | 970.70 | $ | 9.74 | 1.96 | % | $ | 1,000.00 | $ | 1,015.32 | $ | 9.96 | 1.96 | % | |||||||||||||||||
Class R3 | $ | 1,000.00 | $ | 972.70 | $ | 7.26 | 1.46 | % | $ | 1,000.00 | $ | 1,017.85 | $ | 7.43 | 1.46 | % |
92
Expense Information as of 8/31/11 (Unaudited) cont'd
ACTUAL | HYPOTHETICAL (5% ANNUAL RETURN BEFORE EXPENSES)(4) | ||||||||||||||||||||||||||||||||
Beginning Account Value 3/1/11 | Ending Account Value 8/31/11 | Expenses Paid During the Period(1) 3/1/11 - 8/31/11 | Expense Ratio | Beginning Account Value 3/1/11 | Ending Account Value 8/31/11 | Expenses Paid During the Period(1) 3/1/11 - 8/31/11 | Expense Ratio | ||||||||||||||||||||||||||
Regency Fund | |||||||||||||||||||||||||||||||||
Investor Class | $ | 1,000.00 | $ | 855.20 | $ | 5.33 | 1.14 | % | $ | 1,000.00 | $ | 1,019.46 | $ | 5.80 | 1.14 | % | |||||||||||||||||
Trust Class | $ | 1,000.00 | $ | 854.00 | $ | 5.84 | 1.25 | % | $ | 1,000.00 | $ | 1,018.90 | $ | 6.36 | 1.25 | % | |||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 856.10 | $ | 3.98 | .85 | % | $ | 1,000.00 | $ | 1,020.92 | $ | 4.33 | .85 | % | |||||||||||||||||
Class A | $ | 1,000.00 | $ | 854.60 | $ | 5.66 | 1.21 | % | $ | 1,000.00 | $ | 1,019.11 | $ | 6.16 | 1.21 | % | |||||||||||||||||
Class C | $ | 1,000.00 | $ | 851.30 | $ | 9.15 | 1.96 | % | $ | 1,000.00 | $ | 1,015.32 | $ | 9.96 | 1.96 | % | |||||||||||||||||
Class R3 | $ | 1,000.00 | $ | 853.20 | $ | 6.82 | 1.46 | % | $ | 1,000.00 | $ | 1,017.85 | $ | 7.43 | 1.46 | % | |||||||||||||||||
Select Equities Fund | |||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 942.70 | $ | 3.67 | .75 | % | $ | 1,000.00 | $ | 1,021.42 | $ | 3.82 | .75 | % | |||||||||||||||||
Class A | $ | 1,000.00 | $ | 941.60 | $ | 5.87 | 1.20 | % | $ | 1,000.00 | $ | 1,019.16 | $ | 6.11 | 1.20 | % | |||||||||||||||||
Class C | $ | 1,000.00 | $ | 938.30 | $ | 9.53 | 1.95 | % | $ | 1,000.00 | $ | 1,015.38 | $ | 9.91 | 1.95 | % | |||||||||||||||||
Small Cap Growth Fund | |||||||||||||||||||||||||||||||||
Investor Class | $ | 1,000.00 | $ | 945.60 | $ | 5.64 | 1.15 | % | $ | 1,000.00 | $ | 1,019.41 | $ | 5.85 | 1.15 | % | |||||||||||||||||
Trust Class | $ | 1,000.00 | $ | 944.30 | $ | 6.71 | 1.37 | % | $ | 1,000.00 | $ | 1,018.30 | $ | 6.97 | 1.37 | % | |||||||||||||||||
Advisor Class | $ | 1,000.00 | $ | 943.30 | $ | 7.84 | 1.60 | % | $ | 1,000.00 | $ | 1,017.14 | $ | 8.13 | 1.60 | % | |||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 946.50 | $ | 4.42 | .90 | % | $ | 1,000.00 | $ | 1,020.67 | $ | 4.58 | .90 | % | |||||||||||||||||
Class A | $ | 1,000.00 | $ | 944.40 | $ | 6.18 | 1.26 | % | $ | 1,000.00 | $ | 1,018.85 | $ | 6.41 | 1.26 | % | |||||||||||||||||
Class C | $ | 1,000.00 | $ | 941.40 | $ | 9.84 | 2.01 | % | $ | 1,000.00 | $ | 1,015.07 | $ | 10.21 | 2.01 | % | |||||||||||||||||
Class R3 | $ | 1,000.00 | $ | 943.40 | $ | 7.40 | 1.51 | % | $ | 1,000.00 | $ | 1,017.59 | $ | 7.68 | 1.51 | % | |||||||||||||||||
Socially Responsive Fund | |||||||||||||||||||||||||||||||||
Investor Class | $ | 1,000.00 | $ | 907.80 | $ | 4.23 | .88 | % | $ | 1,000.00 | $ | 1,020.77 | $ | 4.48 | .88 | % | |||||||||||||||||
Trust Class | $ | 1,000.00 | $ | 906.90 | $ | 5.09 | 1.06 | % | $ | 1,000.00 | $ | 1,019.86 | $ | 5.40 | 1.06 | % | |||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 908.20 | $ | 3.51 | .73 | % | $ | 1,000.00 | $ | 1,021.53 | $ | 3.72 | .73 | % | |||||||||||||||||
Class A | $ | 1,000.00 | $ | 907.00 | $ | 5.34 | 1.11 | % | $ | 1,000.00 | $ | 1,019.61 | $ | 5.65 | 1.11 | % | |||||||||||||||||
Class C | $ | 1,000.00 | $ | 903.20 | $ | 8.92 | 1.86 | % | $ | 1,000.00 | $ | 1,015.83 | $ | 9.45 | 1.86 | % | |||||||||||||||||
Class R3 | $ | 1,000.00 | $ | 905.50 | $ | 6.53 | 1.36 | % | $ | 1,000.00 | $ | 1,018.35 | $ | 6.92 | 1.36 | % |
(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 63/365 (to reflect the period shown of June 30, 2011 (Commencement of Operations) to August 31, 2011). |
(3) | 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 183/365 (to reflect the period shown of March 2, 2011 to August 31, 2011). |
(4) | Hypothetical 5% annual return before expenses is calculated by multiplying the number of days in the most recent period divided by 365. |
93
Schedule of Investments Emerging Markets Equity Fund
TOP TEN EQUITY HOLDINGS |
Country | Industry | ||||||||||||
1 | Vale SA ADR | Brazil | Metals & Mining | 2.2 | % | ||||||||
2 | China Mobile | China | Wireless Telecommunication Services | 2.0 | % | ||||||||
3 | Hyundai Mobis | Korea | Auto Components | 2.0 | % | ||||||||
4 | MTN Group | South Africa | Wireless Telecommunication Services | 2.0 | % | ||||||||
5 | Samsung Electronics | Korea | Semiconductors & Semiconductor Equipment | 1.9 | % | ||||||||
6 | Sberbank of Russia | Russia | Commercial Banks | 1.6 | % | ||||||||
7 | Sociedad Quimica y Minera de Chile ADR, B Shares | Chile | Chemicals | 1.6 | % | ||||||||
8 | LUKOIL OAO ADR | Russia | Oil, Gas & Consumable Fuels | 1.5 | % | ||||||||
9 | International Container Terminal Services | Philippines | Transportation Infrastructure | 1.5 | % | ||||||||
10 | QGEP Participacoes | Brazil | Oil, Gas & Consumable Fuels | 1.4 | % |
Number of Shares | Value† (000's)b |
Common Stocks (88.9%) | |||||||||
Brazil (9.0%) | |||||||||
BM&FBOVESPA SA | 166,100 | $974 | |||||||
Brasil Insurance Participacoes E Administracao | 69,100 | 825 | |||||||
Cia Hering | 50,500 | 1,116 | |||||||
Diagnosticos da America | 127,900 | 1,322 | |||||||
Ecorodovias Infraestrutura e Logistica | 131,100 | 1,137 | |||||||
HRT Participacoes em Petroleo* | 700 | 461 | |||||||
PDG Realty Empreendimentos E Participacoes | 283,300 | 1,393 | |||||||
Porto Seguro | 11,700 | 144 | |||||||
QGEP Participacoes | 164,300 | 1,646 | |||||||
TOTVS SA | 65,025 | 1,168 | |||||||
10,186 | |||||||||
Chile (2.5%) | |||||||||
Antofagasta PLC | 46,550 | 1,020 | |||||||
Sociedad Quimica y Minera de Chile ADR, B Shares | 28,770 | 1,849 | |||||||
2,869 | |||||||||
China (15.3%) | |||||||||
Baidu, Inc. ADR* | 8,600 | 1,254 | |||||||
Bank of China, H Shares | 2,716,440 | 1,123 | |||||||
Boer Power Holdings | 499,000 | 152 | |||||||
China Automation Group | 1,940,400 | 601 | |||||||
China Liansu Group Holdings | 1,593,400 | 823 | |||||||
China Lumena New Materials | 1,117,500 | 310 | |||||||
China Mobile | 228,250 | 2,319 | |||||||
China Vanke, B Shares | 883,700 | 1,135 | |||||||
Digital China Holdings | 641,000 | 1,092 |
First Tractor, H Shares | 921,300 | $828 | |||||||
GCL-Poly Energy Holdings | 1,230,600 | 545 | |||||||
GOME Electrical Appliances Holdings | 2,575,654 | 1,115 | |||||||
Kingdee International Software Group | 2,971,880 | 1,210 | |||||||
Prince Frog International Holdings* | 1,907,000 | 566 | |||||||
SouFun Holdings ADR | 35,500 | 651 | |||||||
Vinda International Holdings | 682,400 | 799 | |||||||
Want Want China Holdings | 1,436,800 | 1,192 | |||||||
Xingda International Holdings | 1,829,800 | 1,093 | |||||||
Xinyi Glass Holdings | 1,002,396 | 594 | |||||||
17,402 | |||||||||
Colombia (1.1%) | |||||||||
Ecopetrol SA ADR | 28,400 | 1,242 | |||||||
Egypt (0.0%) | |||||||||
Centamin Egypt* | 10,000 | 17 | |||||||
India (9.2%) | |||||||||
Ballarpur Industries | 1,173,882 | 688 | |||||||
Bank of Baroda | 77,690 | 1,247 | |||||||
Bharat Heavy Electricals | 28,930 | 1,107 | |||||||
Cadila Healthcare | 36,219 | 663 | |||||||
DEN Networks* | 162,053 | 146 | |||||||
Exide Industries | 417,435 | 1,351 | |||||||
Godrej Consumer Products | 85,430 | 794 | |||||||
Gujarat State Petronet | 347,535 | 757 | |||||||
Mahindra & Mahindra | 71,345 | 1,141 | |||||||
Prestige Estates Projects | 209,885 | 447 |
Sintex Industries | 260,105 | $817 | |||||||
Sun TV Network | 88,715 | 584 | |||||||
United Phosphorus | 218,720 | 693 | |||||||
10,435 | |||||||||
Indonesia (2.5%) | |||||||||
PT Global Mediacom Tbk | 10,093,500 | 911 | |||||||
PT Harum Energy Tbk | 823,500 | 748 | |||||||
PT Indocement Tunggal Prakarsa Tbk | 18,700 | 33 | |||||||
PT United Tractors Tbk | 424,581 | 1,174 | |||||||
2,866 | |||||||||
Israel (1.0%) | |||||||||
Israel Chemicals | 76,128 | 1,099 | |||||||
Korea (11.4%) | |||||||||
BS Financial Group* | 86,190 | 1,071 | |||||||
GS Home Shopping | 9,095 | 1,096 | |||||||
Hyundai Mobis | 7,338 | 2,318 | |||||||
KT Corp. ADR | 62,800 | 1,073 | |||||||
LG Chem | 4,550 | 1,614 | |||||||
Samsung Electronics | 3,129 | 2,182 | |||||||
Samsung Heavy Industries | 35,040 | 1,141 | |||||||
Shinhan Financial Group | 22,525 | 948 | |||||||
Woongjin Coway | 41,280 | 1,548 | |||||||
12,991 | |||||||||
Malaysia (2.6%) | |||||||||
Axiata Group | 1,032,400 | 1,634 | |||||||
Top Glove | 824,500 | 1,343 | |||||||
2,977 | |||||||||
Mexico (4.6%) | |||||||||
Alamos Gold | 43,700 | 836 | |||||||
First Majestic Silver* | 36,800 | 885 | |||||||
Fresnillo PLC | 38,690 | 1,319 | |||||||
Genomma Lab Internacional Class B* | 516,500 | 1,090 | |||||||
Kimberly-Clark de Mexico Class A | 182,600 | 1,068 | |||||||
5,198 |
See Notes to Schedule of Investments
94
Number of Shares | Value† (000's)b |
Nigeria (1.2%) | |||||||||
Afren PLC* | 570,855 | $972 | |||||||
Guaranty Trust Bank | 5,592,847 | 453 | |||||||
1,425 | |||||||||
Philippines (2.5%) | |||||||||
Energy Development | 7,562,050 | 1,118 | |||||||
International Container Terminal Services | 1,450,030 | 1,738 | |||||||
2,856 | |||||||||
Qatar (0.8%) | |||||||||
Industries Qatar | 25,285 | 865 | |||||||
Russia (5.7%) | |||||||||
Eurasia Drilling GDR | 38,590 | 860 | |||||||
LUKOIL OAO ADR | 28,935 | 1,741 | |||||||
Magnit OJSC GDR | 45,278 | 1,078 | |||||||
Pharmstandard OJSC GDR* | 49,655 | 996 | |||||||
Sberbank of Russia | 638,665 | 1,852 | |||||||
6,527 | |||||||||
South Africa (6.5%) | |||||||||
Aspen Pharmacare Holdings* | 74,510 | 900 | |||||||
Exxaro Resources | 55,580 | 1,495 | |||||||
MTN Group | 110,316 | 2,275 | |||||||
Naspers Ltd., N Shares | 21,925 | 1,148 | |||||||
Shoprite Holdings | 103,180 | 1,625 | |||||||
7,443 | |||||||||
Taiwan, Province of China (6.0%) | |||||||||
E.Sun Financial Holding | 1,897,966 | 1,109 | |||||||
HTC Corp. | 62,000 | 1,616 | |||||||
Hung Poo Real Estate Development | 561,402 | 519 | |||||||
Simplo Technology | 228,276 | 1,617 | |||||||
Taiwan Semiconductor Manufacturing | 626,439 | 1,498 | |||||||
TXC Corp. | 361,236 | 422 | |||||||
6,781 | |||||||||
Thailand (2.0%) | |||||||||
Bangkok Bank Public | 174,200 | 930 | |||||||
Kasikornbank PCL | 315,900 | 1,344 | |||||||
2,274 | |||||||||
Turkey (1.6%) | |||||||||
Koza Altin Isletmeleri | 51,000 | 699 | |||||||
Sinpas Gayrimenkul Yatirim Ortakligi | 186,896 | 170 | |||||||
Turkiye Garanti Bankasi | 271,158 | 990 | |||||||
1,859 |
United Arab Emirates (0.7%) | |||||||||
Dragon Oil | 99,790 | $822 | |||||||
United Kingdom (1.9%) | |||||||||
BG Group | 56,360 | 1,219 | |||||||
Tullow Oil | 52,905 | 923 | |||||||
2,142 | |||||||||
United States (0.8%) | |||||||||
NII Holdings | 22,400 | 863 | |||||||
Total Common Stocks (Cost $108,410) | 101,139 | ||||||||
Preferred Stocks (5.5%) | |||||||||
Brazil (5.5%) | |||||||||
Banco Do Estado do Rio Grande do Sul Class B | 116,700 | 1,289 | |||||||
Companhia de Bebidas das Americas ADR | 40,000 | 1,426 | |||||||
Randon Participacoes | 162,100 | 1,062 | |||||||
Refinaria de Petroleo IpirangaÑ*^^ | 173 | 0 | |||||||
Vale SA ADR | 95,825 | 2,475 | |||||||
Total Preferred Stocks (Cost $6,197) | 6,252 | ||||||||
Short-Term Investments (5.7%) | |||||||||
State Street Institutional Liquid Reserves Fund Institutional Class (Cost $6,467) | 6,467,078 | 6,467 | |||||||
Total Investments## (100.1%) (Cost $121,074) | 113,858 | ||||||||
Liabilities, less cash, receivables and other assets [(0.1%)] | (124 | ) | |||||||
Total Net Assets (100.0%) | $113,734 |
See Notes to Schedule of Investments
95
SUMMARY SCHEDULE OF INVESTMENTS BY INDUSTRY EMERGING MARKETS EQUITY FUND (UNAUDITED) |
Industry | Investments at Value† (000's omitted) | Percentage of Net Assets | |||||||
Commercial Banks | $12,356 | 10.9 | % | ||||||
Metals & Mining | 9,838 | 8.7 | % | ||||||
Oil, Gas & Consumable Fuels | 9,773 | 8.6 | % | ||||||
Wireless Telecommunication Services | 7,091 | 6.2 | % | ||||||
Chemicals | 5,565 | 4.9 | % | ||||||
Machinery | 4,807 | 4.2 | % | ||||||
Auto Components | 4,263 | 3.7 | % | ||||||
Semiconductors & Semiconductor Equipment | 4,225 | 3.7 | % | ||||||
Pharmaceuticals | 3,649 | 3.2 | % | ||||||
Household Durables | 2,941 | 2.6 | % | ||||||
Transportation Infrastructure | 2,875 | 2.5 | % | ||||||
Media | 2,789 | 2.4 | % | ||||||
Food & Staples Retailing | 2,703 | 2.4 | % | ||||||
Software | 2,378 | 2.1 | % | ||||||
Specialty Retail | 2,231 | 2.0 | % | ||||||
Real Estate Management & Development | 2,101 | 1.8 | % | ||||||
Internet Software & Services | 1,905 | 1.7 | % | ||||||
Household Products | 1,867 | 1.6 | % | ||||||
Building Products | 1,640 | 1.4 | % | ||||||
Computers & Peripherals | 1,617 | 1.4 | % | ||||||
Communications Equipment | 1,616 | 1.4 | % | ||||||
Electronic Equipment, Instruments & Components | 1,514 | 1.3 | % | ||||||
Beverages | 1,426 | 1.3 | % | ||||||
Personal Products | 1,360 | 1.2 | % | ||||||
Health Care Equipment & Supplies | 1,343 | 1.2 | % | ||||||
Health Care Providers & Services | 1,322 | 1.2 | % | ||||||
Electrical Equipment | 1,259 | 1.1 | % | ||||||
Food Products | 1,192 | 1.0 | % | ||||||
Automobiles | 1,141 | 1.0 | % | ||||||
Independent Power Producers & Energy Traders | 1,118 | 1.0 | % | ||||||
Internet & Catalog Retail | 1,096 | 1.0 | % | ||||||
Diversified Telecommunication | 1,073 | 0.9 | % | ||||||
Diversified Financial Services | 974 | 0.9 | % | ||||||
Insurance | 969 | 0.9 | % | ||||||
Industrial Conglomerates | 865 | 0.8 | % | ||||||
Energy Equipment & Services | 861 | 0.8 | % | ||||||
Gas Utilities | 757 | 0.7 | % | ||||||
Paper & Forest Products | 688 | 0.6 | % | ||||||
Real Estate Investment Trusts | 170 | 0.1 | % | ||||||
Construction Materials | 33 | 0.0 | % | ||||||
Short-Term Investments and Other Assets—Net | 6,343 | 5.6 | % | ||||||
$ | 113,734 | 100.0 | % |
See Notes to Schedule of Investments
96
Schedule of Investments Equity Income Fund
TOP TEN EQUITY HOLDINGS |
1 | Honeywell International | 2.1 | % | ||||||
2 | Royal Gold | 2.0 | % | ||||||
3 | Philip Morris International | 1.9 | % | ||||||
4 | Unilever NV | 1.9 | % | ||||||
5 | CenterPoint Energy | 1.9 | % | ||||||
6 | Alliant Energy | 1.7 | % | ||||||
7 | BlackRock, Inc. | 1.7 | % | ||||||
8 | Ecopetrol SA ADR | 1.7 | % | ||||||
9 | Franco-Nevada Corp. | 1.7 | % | ||||||
10 | Sanofi-Aventis ADR | 1.7 | % |
Number of Shares | Value† (000's)b |
Metals & Mining (3.6%) | |||||||||
Franco-Nevada Corp. | 589,000 | $25,375 | |||||||
Royal Gold‡‡ | 382,000 | 29,292 | |||||||
54,667 | |||||||||
Multi-Utilities (8.9%) | |||||||||
Alliant Energy | 640,000 | 25,965 | |||||||
CenterPoint Energy | 1,417,000 | 28,354 | |||||||
NSTAR | 208,000 | 9,510 | |||||||
PG&E Corp. | 471,000 | 19,947 | |||||||
TECO Energy | 1,069,000 | 19,562 | |||||||
Wisconsin Energy | 580,000 | 18,351 | |||||||
Xcel Energy | 500,000 | 12,335 | |||||||
134,024 | |||||||||
Oil, Gas & Consumable Fuels (11.8%) | |||||||||
ARC Resources | 799,000 | 19,943 | |||||||
Bonavista Energy | 660,000 | 17,495 | |||||||
Cenovus Energy | 688,000 | 24,823 | |||||||
Crescent Point Energy | 531,000 | 24,006 | |||||||
Ecopetrol SA ADR | 590,000 | 25,795 | |||||||
Enbridge Energy Management* | 19,147 | 527 | |||||||
PetroChina Co. ADR | 167,000 | 21,460 | |||||||
Spectra Energy | 851,000 | 22,100 | |||||||
Total SA ADR | 412,000 | 20,205 | |||||||
176,354 | |||||||||
Pharmaceuticals (3.0%) | |||||||||
Johnson & Johnson‡‡ | 297,000 | 19,543 | |||||||
Sanofi-Aventis ADR | 685,000 | 25,050 | |||||||
44,593 | |||||||||
Real Estate Investment Trusts (19.6%) | |||||||||
American Campus Communities‡‡ | 626,000 | 24,420 | |||||||
Ascendas Real Estate Investment Trustñ | 1,840,000 | 3,239 | |||||||
Ascendas Real Estate Investment Trust | 9,766,000 | 17,192 | |||||||
AvalonBay Communities‡‡ | 67,500 | 9,206 | |||||||
Campus Crest Communities | 1,182,000 | 13,971 | |||||||
Digital Realty Trust‡‡ | 297,000 | 17,746 | |||||||
GZI REIT | 17,893,000 | 9,606 |
HCP, Inc. | 630,000 | $23,486 | |||||||
Japan Logistics Fund | 2,252 | 20,470 | |||||||
Lippo-Mapletree Indonesia Retail Trust | 24,214,564 | 11,762 | |||||||
Mapletree Logistics Trust | 13,240,000 | 9,785 | |||||||
Parkway Life Real Estate | 9,193,900 | 14,390 | |||||||
Potlatch Corp. | 294,900 | 9,897 | |||||||
ProLogis, Inc. | 740,000 | 20,150 | |||||||
Rayonier Inc. | 457,500 | 19,188 | |||||||
RLJ Lodging Trust | 1,508,250 | 19,999 | |||||||
Suntec Real Estate Investment Trust | 11,330,000 | 12,701 | |||||||
Ventas, Inc. | 363,409 | 19,435 | |||||||
Weyerhaeuser Co. | 966,000 | 17,417 | |||||||
294,060 | |||||||||
Road & Rail (1.6%) | |||||||||
Norfolk Southern | 361,000 | 24,432 | |||||||
Semiconductors & Semiconductor Equipment (1.2%) | |||||||||
Linear Technology | 20,000 | 573 | |||||||
Microchip Technology | 544,000 | 17,854 | |||||||
18,427 | |||||||||
Tobacco (1.9%) | |||||||||
Philip Morris International‡‡ | 416,000 | 28,837 | |||||||
Transportation Infrastructure (1.5%) | |||||||||
SATS Ltd. | 11,707,000 | 22,067 | |||||||
Water Utilities (1.3%) | |||||||||
Aqua America | 882,000 | 19,475 | |||||||
Wireless Telecommunication Services (2.8%) | |||||||||
China Mobile ADR | 320,000 | 16,374 | |||||||
Philippine Long Distance Telephone ADR | 276,000 | 15,914 | |||||||
Taiwan Mobile | 3,636,000 | 9,852 | |||||||
42,140 | |||||||||
Total Common Stocks (Cost $1,136,880) | 1,199,726 | ||||||||
Convertible Preferred Stocks (0.7%) | |||||||||
Bunge Ltd. (Cost $11,223) | 115,000 | 11,097 |
See Notes to Schedule of Investments
97
Principal Amount | Value† (000's)b |
Convertible Bonds (12.9%) | |||||||||
Best Buy Co., Inc., Guaranteed Notes, 2.25%, due 1/15/22 | $4,600,000 | $4,571 | |||||||
Bill Barrett Corp., Guaranteed Notes, 5.00%, due 3/15/28 | 3,620,000 | 3,688 | |||||||
Charles River Laboratories International, Inc., Senior Unsecured Notes, 2.25%, due 6/15/13 | 11,035,000 | 10,938 | |||||||
Chart Industries, Inc., Senior Subordinated Notes, 2.00%, due 8/1/18 | 10,185,000 | 9,981 | |||||||
Covanta Holding Corp., Senior Unsecured Notes, 1.00%, due 2/1/27 | 7,969,000 | 7,939 | |||||||
Equinix, Inc., Subordinated Notes, 3.00%, due 10/15/14 | 6,010,000 | 6,431 | |||||||
Hologic, Inc., Senior Unsecured Notes, Step-Down, 2.00%/0.00%, due 12/15/37a | 19,795,000 | 18,756 | |||||||
Host Hotels & Resorts L.P., Guaranteed Notes, 2.63%, due 4/15/27ñ | 9,600,000 | 9,600 | |||||||
Iconix Brand Group, Inc., Senior Subordinated Notes, 2.50%, due 6/1/16ñ | 2,100,000 | 2,058 | |||||||
Integra Lifesciences Holdings Corp., Guaranteed Notes, 2.38%, due 6/1/12ñ | 6,881,000 | 6,838 | |||||||
James River Coal Co., Senior Unsecured Notes, 3.13%, due 3/15/18ñ | 6,630,000 | 4,939 | |||||||
James River Coal Co., Senior Unsecured Notes, 4.50%, due 12/1/15 | 8,170,000 | 7,271 | |||||||
Kinross Gold Corp., Senior Unsecured Notes, 1.75%, due 3/15/28 | | $12,260,000 | | $12,122 | |||||
Lions Gate Entertainment Corp., Guaranteed Notes, 2.94%, due 10/15/24 | 2,600,000 | 2,600 | |||||||
Massey Energy Co., Guaranteed Notes, 3.25%, due 8/1/15 | 3,940,000 | 3,768 | |||||||
Molycorp, Inc., Senior Unsecured Notes, 3.25%, due 6/15/16ñ | 1,950,000 | 2,255 | |||||||
NASDAQ OMX Group Inc. (The), Senior Unsecured Notes, 2.50%, due 8/15/13 | 13,215,000 | 13,232 | |||||||
NuVasive, Inc., Senior Unsecured Notes, 2.75%, due 7/1/17 | 6,730,000 | 6,293 | |||||||
Paladin Energy Ltd., Senior Unsecured Notes, 3.625%, due 11/4/15 | 10,900,000 | 8,447 | |||||||
Patriot Coal Corp., Senior Unsecured Notes, 3.25%, due 5/31/13 | 11,330,000 | 10,990 | |||||||
Primaris Retail REIT, Subordinated Notes, 5.40%, | 11,500,000 | 11,597 | |||||||
RTI International Metals, Inc., Guaranteed Notes, 3.00%, due 12/1/15 | 490,000 | 515 | |||||||
Southern Pacific Resource, Unsecured Notes, 6.00% | 4,800,000 | 4,639 | |||||||
WebMD Health Corp., Senior Unsecured Notes, 2.25%, | 10,720,000 | 9,769 | |||||||
WebMD Health Corp., Senior Unsecured Notes, 2.50%, | 4,750,000 | 4,079 |
Wright Medical Group, Inc., Senior Unsecured Notes, 2.63%, due 12/1/14 | $10,535,000 | $10,548 | |||||||
Total Convertible Bonds (Cost $196,564) | 193,864 | ||||||||
U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government (0.4%) | |||||||||
U.S. Treasury Bills, 0.03%, due 9/15/11 | 2,000,000 | 2,000 | |||||||
U.S. Treasury Bills, 0.04%, due 10/20/11 | 2,000,000 | 2,000 | |||||||
U.S. Treasury Bills, 0.07%, due 11/10/11 | 2,000,000 | 2,000 | |||||||
Total U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government (Cost $6,000) | 6,000 | ||||||||
Number of Shares | |||||||||
Short-Term Investments (4.7%) | |||||||||
State Street Institutional Treasury Money Market Fund Institutional Class (Cost $70,463) | 70,462,960 | 70,463 | |||||||
Total Investments## (98.6%) (Cost $1,421,130) | 1,481,150 | ||||||||
Cash, receivables and other assets, less liabilities‡‡ (1.4%) | 20,975 | ||||||||
Total Net Assets (100.0%) | $1,502,125 |
See Notes to Schedule of Investments
98
Schedule of Investments Focus Fund
TOP TEN EQUITY HOLDINGS |
1 | Oracle Corp. | 5.4 | % | ||||||
2 | Halliburton Co. | 4.5 | % | ||||||
3 | Apple, Inc. | 4.5 | % | ||||||
4 | Honeywell International | 4.3 | % | ||||||
5 | Target Corp. | 4.0 | % | ||||||
6 | J.P. Morgan Chase | 3.9 | % | ||||||
7 | Molson Coors Brewing Class B | 3.9 | % | ||||||
8 | Colgate-Palmolive | 3.9 | % | ||||||
9 | Denbury Resources | 3.8 | % | ||||||
10 | NextEra Energy | 3.8 | % |
Number of Shares | Value† (000's)b |
Common Stocks (97.0%) | |||||||||
Aerospace & Defense (6.9%) | |||||||||
Boeing Co. | 210,000 | $14,040 | |||||||
Honeywell International | 480,000 | 22,949 | |||||||
36,989 | |||||||||
Beverages (3.9%) | |||||||||
Molson Coors Brewing Class B | 480,000 | 21,000 | |||||||
Biotechnology (3.2%) | |||||||||
Amgen Inc. | 305,000 | 16,899 | |||||||
Capital Markets (6.6%) | |||||||||
BlackRock, Inc. | 123,000 | 20,264 | |||||||
Goldman Sachs Group | 130,000 | 15,109 | |||||||
35,373 | |||||||||
Chemicals (0.9%) | |||||||||
Potash Corp. of Saskatchewan | 80,000 | 4,638 | |||||||
Commercial Services & Supplies (2.9%) | |||||||||
Tetra Tech* | 127,300 | 2,534 | |||||||
Waste Connections | 370,300 | 12,809 | |||||||
15,343 | |||||||||
Computers & Peripherals (4.5%) | |||||||||
Apple, Inc.* | 62,000 | 23,859 | |||||||
Containers & Packaging (0.8%) | |||||||||
Silgan Holdings | 113,500 | 4,305 | |||||||
Diversified Financial Services (3.9%) | |||||||||
J.P. Morgan Chase | 560,000 | 21,034 | |||||||
Electric Utilities (3.8%) | |||||||||
NextEra Energy | 360,000 | 20,419 | |||||||
Energy Equipment & Services (4.5%) | |||||||||
Halliburton Co. | 540,000 | 23,960 | |||||||
Health Care Equipment & Supplies (3.7%) | |||||||||
Covidien PLC | 385,000 | 20,089 | |||||||
Health Care Providers & Services (5.1%) | |||||||||
Cardinal Health | 390,000 | 16,575 | |||||||
UnitedHealth Group | 230,000 | 10,930 | |||||||
27,505 |
Household Durables (3.3%) | |||||||||
Fortune Brands | 145,000 | $8,283 | |||||||
Newell Rubbermaid | 680,000 | 9,411 | |||||||
17,694 | |||||||||
Household Products (3.9%) | |||||||||
Colgate-Palmolive | 230,000 | 20,693 | |||||||
Insurance (3.4%) | |||||||||
Prudential Financial | 365,000 | 18,327 | |||||||
Leisure Equipment & Products (2.3%) | |||||||||
Mattel Inc. | 455,000 | 12,226 | |||||||
Media (5.2%) | |||||||||
Comcast Corp. Class A Special | 710,000 | 15,024 | |||||||
Discovery Communications Class C* | 330,000 | 13,038 | |||||||
28,062 | |||||||||
Metals & Mining (2.7%) | |||||||||
Rio Tinto ADR | 240,000 | 14,678 | |||||||
Multiline Retail (4.0%) | |||||||||
Target Corp. | 420,000 | 21,701 | |||||||
Oil, Gas & Consumable Fuels (7.6%) | |||||||||
Cabot Oil & Gas | 240,000 | 18,206 | |||||||
Canadian Natural Resources | 45,000 | 1,695 | |||||||
Denbury Resources* | 1,290,000 | 20,576 | |||||||
40,477 | |||||||||
Semiconductors & Semiconductor Equipment (3.6%) | |||||||||
Cymer, Inc.* | 200,000 | 8,092 | |||||||
NXP Semiconductors* | 680,000 | 11,077 | |||||||
19,169 | |||||||||
Software (8.0%) | |||||||||
Activision Blizzard | 1,160,000 | 13,735 | |||||||
Oracle Corp. | 1,030,000 | 28,912 | |||||||
42,647 | |||||||||
Textiles, Apparel & Luxury Goods (2.3%) | |||||||||
Coach, Inc. | 215,000 | 12,087 | |||||||
Total Common Stocks (Cost $519,298) | 519,174 | ||||||||
Short-Term Investments (2.6%) | |||||||||
State Street Institutional Treasury Money Market Fund Institutional Class (Cost $13,842) | 13,842,135 | $13,842 | |||||||
Total Investments## (99.6%) (Cost $533,140) | 533,016 | ||||||||
Cash, receivables and other assets, less liabilities (0.4%) | 1,985 | ||||||||
Total Net Assets (100.0%) | $535,001 |
See Notes to Schedule of Investments
99
Schedule of Investments Genesis Fund
TOP TEN EQUITY HOLDINGS |
1 | Church & Dwight | 2.8 | % | ||||||
2 | AptarGroup Inc. | 2.7 | % | ||||||
3 | CARBO Ceramics | 2.4 | % | ||||||
4 | Compass Minerals International | 2.4 | % | ||||||
5 | Solera Holdings | 2.4 | % | ||||||
6 | Oceaneering International | 2.1 | % | ||||||
7 | Cabot Oil & Gas | 2.0 | % | ||||||
8 | CLARCOR Inc. | 2.0 | % | ||||||
9 | Concho Resources | 1.9 | % | ||||||
10 | MICROS Systems | 1.8 | % |
Number of Shares | Value† (000's)b |
Common Stocks (92.7%) | |||||||||
Aerospace & Defense (0.4%) | |||||||||
Alliant Techsystems | 462,062 | $29,327 | |||||||
American Science & Engineering | 230,241 | 15,527 | |||||||
44,854 | |||||||||
Air Freight & Logistics (0.4%) | |||||||||
Forward Air^ | 1,746,600 | 49,621 | |||||||
Auto Components (0.7%) | |||||||||
Gentex Corp. | 2,925,349 | 75,898 | |||||||
Beverages (0.7%) | |||||||||
Boston Beer Class A*^ | 967,419 | 78,429 | |||||||
Capital Markets (0.6%) | |||||||||
Eaton Vance | 1,010,600 | 24,669 | |||||||
Greenhill & Co. | 574,400 | 20,408 | |||||||
Waddell & Reed Financial Class A | 736,461 | 22,992 | |||||||
68,069 | |||||||||
Chemicals (3.7%) | |||||||||
Balchem Corp. | 1,308,035 | 54,022 | |||||||
Hawkins, Inc. | 447,773 | 16,232 | |||||||
Intrepid Potash* | 3,530,399 | 120,810 | |||||||
LSB Industries* | 799,300 | 31,932 | |||||||
NewMarket Corp. | 289,647 | 48,568 | |||||||
RPM International | 2,303,344 | 48,002 | |||||||
Sensient Technologies^ | 2,582,614 | 93,878 | |||||||
413,444 | |||||||||
Commercial Banks (2.8%) | |||||||||
Bank of Hawaii | 1,481,700 | 61,594 | |||||||
BOK Financial | 1,024,094 | 50,386 | |||||||
Cullen/Frost Bankers | 1,385,800 | 70,662 | |||||||
First Financial Bankshares | 1,431,094 | 42,375 | |||||||
Westamerica Bancorp^ | 1,995,243 | 84,618 | |||||||
309,635 | |||||||||
Commercial Services & Supplies (4.9%) | |||||||||
Copart, Inc.* | 2,692,131 | 115,869 | |||||||
Healthcare Services Group^ | 5,518,381 | 86,528 |
Ritchie Bros. Auctioneers | 3,845,210 | $88,402 | |||||||
Rollins, Inc. | 6,390,120 | 133,618 | |||||||
United Stationers^ | 3,905,841 | 123,190 | |||||||
547,607 | |||||||||
Construction & Engineering (0.2%) | |||||||||
Layne Christensen*^ | 1,006,207 | 28,244 | |||||||
Containers & Packaging (3.3%) | |||||||||
AptarGroup Inc.^ | 6,055,900 | 305,702 | |||||||
Silgan Holdings | 1,635,183 | 62,022 | |||||||
367,724 | |||||||||
Distributors (0.0%) | |||||||||
Pool Corp. | 213,700 | 5,541 | |||||||
Diversified Consumer Services (1.4%) | |||||||||
Capella Education* | 297,274 | 9,507 | |||||||
Hillenbrand, Inc. | 2,422,096 | 49,411 | |||||||
Matthews International Class A^ | 1,679,138 | 56,100 | |||||||
Strayer Education | 435,902 | 41,258 | |||||||
156,276 | |||||||||
Diversified Financial Services (0.1%) | |||||||||
Pico Holdings* | 440,267 | 10,355 | |||||||
Electronic Equipment, Instruments & Components (0.9%) | |||||||||
Trimble Navigation* | 2,665,142 | 98,983 | |||||||
Energy Equipment & Services (5.8%) | |||||||||
CARBO Ceramics^ | 1,702,600 | 272,671 | |||||||
Lufkin Industries^ | 1,621,220 | 100,889 | |||||||
Natural Gas Services Group*^ | 829,800 | 10,779 | |||||||
Oceaneering International | 5,370,024 | 229,246 | |||||||
Pason Systems | 2,717,915 | 36,330 | |||||||
649,915 | |||||||||
Food & Staples Retailing (1.7%) | |||||||||
Ruddick Corp.^ | 4,774,967 | 195,248 | |||||||
Food Products (1.9%) | |||||||||
Darling International* | 1,601,200 | $26,980 | |||||||
Flowers Foods | 2,849,505 | 54,283 | |||||||
J & J Snack Foods^ | 1,169,046 | 59,165 | |||||||
Lancaster Colony | 1,132,556 | 68,656 | |||||||
209,084 | |||||||||
Gas Utilities (2.5%) | |||||||||
New Jersey Resources | 1,980,200 | 93,287 | |||||||
Northwest Natural Gas | 849,900 | 38,433 | |||||||
Piedmont Natural Gas | 760,100 | 23,487 | |||||||
South Jersey Industries | 1,426,844 | 73,525 | |||||||
WGL Holdings | 1,124,395 | 46,505 | |||||||
275,237 | |||||||||
Health Care Equipment & Supplies (5.7%) | |||||||||
Abaxis, Inc.*^ | 1,158,100 | 28,802 | |||||||
DENTSPLY International | 1,851,200 | 65,162 | |||||||
Haemonetics Corp.*^ | 2,523,900 | 157,769 | |||||||
IDEXX Laboratories* | 2,250,162 | 179,518 | |||||||
Meridian Bioscience^ | 2,191,397 | 40,541 | |||||||
Sirona Dental Systems* | 2,119,426 | 98,893 | |||||||
West Pharmaceutical Services | 1,651,629 | 66,263 | |||||||
636,948 | |||||||||
Health Care Providers & Services (4.1%) | |||||||||
AmSurg Corp.*^ | 1,703,534 | 38,551 | |||||||
Henry Schein* | 2,319,540 | 152,881 | |||||||
Landauer, Inc.^ | 501,750 | 25,870 | |||||||
MWI Veterinary Supply*^ | 1,091,429 | 80,766 | |||||||
Patterson Companies | 2,799,700 | 81,807 | |||||||
PSS World Medical*^ | 3,010,199 | 70,981 | |||||||
VCA Antech* | 527,405 | 9,762 | |||||||
460,618 |
See Notes to Schedule of Investments
100
Number of Shares | Value† (000's)b |
Health Care Technology (0.9%) | |||||||||
Quality Systems | 1,077,505 | $99,152 | |||||||
Hotels, Restaurants & Leisure (0.5%) | |||||||||
Brinker International | 2,612,100 | 58,981 | |||||||
Household Durables (0.2%) | |||||||||
Leggett & Platt | 1,212,200 | 26,899 | |||||||
Household Products (2.8%) | |||||||||
Church & Dwight^ | 7,201,938 | 313,572 | |||||||
Industrial Conglomerates (0.9%) | |||||||||
Raven Industries^ | 1,792,176 | 97,369 | |||||||
Insurance (3.6%) | |||||||||
Brown & Brown | 596,770 | 12,538 | |||||||
Hanover Insurance Group | 909,884 | 32,319 | |||||||
Harleysville Group^ | 1,990,130 | 57,057 | |||||||
HCC Insurance Holdings | 1,213,500 | 35,483 | |||||||
Infinity Property & Casualty | 121,900 | 6,223 | |||||||
RenaissanceRe Holdings | 1,433,353 | 93,985 | |||||||
RLI Corp.^ | 1,359,046 | 85,919 | |||||||
Safety Insurance Group^ | 1,024,434 | 39,953 | |||||||
Validus Holdings | 1,354,400 | 34,970 | |||||||
398,447 | |||||||||
IT Services (1.8%) | |||||||||
Forrester Research^ | 1,375,053 | 46,339 | |||||||
Jack Henry & Associates | 1,946,353 | 56,912 | |||||||
ManTech International Class A^ | 2,006,700 | 75,231 | |||||||
Syntel, Inc. | 433,262 | 19,826 | |||||||
198,308 | |||||||||
Leisure Equipment & Products (1.3%) | |||||||||
Polaris Industries | 1,284,260 | 141,102 | |||||||
Life Science Tools & Services (2.0%) | |||||||||
ICON PLC ADR*^ | 3,578,000 | 76,247 | |||||||
Pharmaceutical Product Development | 3,791,600 | 119,360 | |||||||
Techne Corp. | 394,700 | 28,604 | |||||||
224,211 | |||||||||
Machinery (10.2%) | |||||||||
AG Growth International^ | 1,367,500 | 55,217 | |||||||
Badger Meter | 379,205 | 13,283 | |||||||
Chart Industries* | 92,912 | 4,394 | |||||||
CLARCOR Inc.^ | 4,755,022 | 221,299 | |||||||
Donaldson Co. | 2,464,100 | 145,333 |
Douglas Dynamics | 149,551 | $2,171 | |||||||
Graco Inc. | 823,117 | 32,497 | |||||||
Industrea Ltd.^ | 27,882,542 | 40,237 | |||||||
International Mining Machinery | 28,730,600 | 29,336 | |||||||
Joy Global | 511,200 | 42,660 | |||||||
Lincoln Electric Holdings | 961,864 | 32,732 | |||||||
Lindsay Corp.^ | 1,181,550 | 73,492 | |||||||
Nordson Corp. | 2,779,508 | 122,020 | |||||||
Robbins & Myers | 574,500 | 27,605 | |||||||
Toro Co. | 693,894 | 37,866 | |||||||
Valmont Industries | 989,604 | 91,568 | |||||||
Wabtec Corp.^ | 2,699,900 | 164,397 | |||||||
1,136,107 | |||||||||
Metals & Mining (3.9%) | |||||||||
Alamos Gold | 4,794,800 | 92,060 | |||||||
Compass Minerals International^ | 3,562,100 | 269,330 | |||||||
Major Drilling Group International^ | 5,630,600 | 74,803 | |||||||
436,193 | |||||||||
Office Electronics (0.8%) | |||||||||
Zebra Technologies Class A* | 2,633,670 | 94,628 | |||||||
Oil, Gas & Consumable Fuels (9.6%) | |||||||||
Abraxas Petroleum* | 4,509,900 | 16,642 | |||||||
Brigham Exploration* | 1,711,328 | 49,800 | |||||||
Cabot Oil & Gas | 2,989,500 | 226,783 | |||||||
Concho Resources* | 2,480,392 | 215,670 | |||||||
Gulfport Energy* | 2,056,000 | 59,418 | |||||||
Kodiak Oil & Gas* | 3,511,337 | 21,068 | |||||||
Legacy Oil + Gas* | 1,363,300 | 14,806 | |||||||
Legacy Oil + Gas*ñ | 100,000 | 1,093 | |||||||
Northern Oil and Gas* | 2,872,849 | 58,664 | |||||||
Oasis Petroleum* | 1,655,880 | 44,046 | |||||||
Petrominerales Ltd. | 1,838,428 | 57,776 | |||||||
Resolute Energy* | 1,547,062 | 20,870 | |||||||
SM Energy | 2,061,100 | 157,674 | |||||||
Southwestern Energy* | 1,707,600 | 64,803 | |||||||
Vermilion Energy | 1,278,200 | 58,858 | |||||||
1,067,971 |
Professional Services (0.4%) | |||||||||
Exponent, Inc.*^ | 1,166,935 | $49,315 | |||||||
Road & Rail (0.1%) | |||||||||
Genesee & Wyoming Class A* | 184,400 | 9,578 | |||||||
Semiconductors & Semiconductor Equipment (1.2%) | |||||||||
GT Advance Technologies*^ | 7,049,100 | 86,070 | |||||||
Hittite Microwave* | 849,123 | 46,124 | |||||||
132,194 | |||||||||
Software (6.2%) | |||||||||
Blackbaud, Inc.^ | 3,764,403 | 94,260 | |||||||
Computer Modelling Group^ | 1,885,500 | 25,126 | |||||||
FactSet Research Systems | 1,224,800 | 107,660 | |||||||
MICROS Systems*^ | 4,308,942 | 205,364 | |||||||
Solera Holdings^ | 4,498,053 | 263,811 | |||||||
696,221 | |||||||||
Specialty Retail (2.2%) | |||||||||
Hibbett Sports*^ | 1,840,963 | 68,963 | |||||||
Leon's Furniture | 1,100,500 | 13,451 | |||||||
Sally Beauty Holdings* | 3,049,459 | 51,536 | |||||||
Tractor Supply | 1,785,741 | 109,591 | |||||||
243,541 | |||||||||
Thrifts & Mortgage Finance (0.7%) | |||||||||
BankUnited | 350,900 | 8,229 | |||||||
Brookline Bancorp^ | 4,067,590 | 34,249 | |||||||
Capitol Federal Financial | 706,352 | 7,579 | |||||||
Oritani Financial | 2,059,000 | 27,076 | |||||||
77,133 | |||||||||
Trading Companies & Distributors (0.9%) | |||||||||
Applied Industrial Technologies | 1,036,200 | 31,729 | |||||||
MSC Industrial Direct Class A | 831,300 | 51,266 | |||||||
Richelieu Hardware | 554,800 | 14,616 | |||||||
97,611 | |||||||||
Water Utilities (0.7%) | |||||||||
American States Water | 840,811 | 29,849 | |||||||
Aqua America | 2,277,535 | 50,288 | |||||||
80,137 | |||||||||
Total Common Stocks (Cost $6,435,967) | 10,360,400 |
See Notes to Schedule of Investments
101
Number of Shares | Value† (000's)b |
Exchange Traded Funds (1.0%) | |||||||||
SPDR Gold Trust* (Cost $58,436) | 616,050 | $109,442 | |||||||
Short-Term Investments (6.2%) | |||||||||
State Street Institutional Treasury Money Market Fund Institutional Class | 370,356,562 | 370,356 | |||||||
State Street Institutional Treasury Plus Fund Institutional Class^ | 323,232,740 | 323,233 | |||||||
Total Short-Term Investments (Cost $693,589) | 693,589 | ||||||||
Total Investments## (99.9%) (Cost $7,187,992) | 11,163,431 | ||||||||
Cash, receivables and other assets, less liabilities (0.1%) | 6,953 | ||||||||
Total Net Assets (100.0%) | $11,170,384 |
See Notes to Schedule of Investments
102
Schedule of Investments Global Equity Fund
TOP TEN EQUITY HOLDINGS |
Country | Industry | ||||||||||||
1 | Hyundai Mobis | Korea | Auto Components | 2.4 | % | ||||||||
2 | Vodafone Group | United Kingdom | Wireless Telecommunication Services | 2.2 | % | ||||||||
3 | Apple Inc. | United States | Computers & Peripherals | 1.9 | % | ||||||||
4 | American Tower Class A | United States | Wireless Telecommunication Services | 1.9 | % | ||||||||
5 | Covidien PLC | United States | Health Care Equipment & Supplies | 1.9 | % | ||||||||
6 | Jupiter Telecommunications | Japan | Media | 1.9 | % | ||||||||
7 | IBM | United States | IT Services | 1.8 | % | ||||||||
8 | Rio Tinto ADR | United Kingdom | Metals & Mining | 1.8 | % | ||||||||
9 | Goldcorp, Inc. | Canada | Metals & Mining | 1.8 | % | ||||||||
10 | New Gold | Canada | Metals & Mining | 1.8 | % |
Number of Shares | Value† (000's)b |
Common Stocks (101.2%) | |||||||||
Australia (1.6%) | |||||||||
CSL Ltd. | 230 | $7 | |||||||
Fortescue Metals Group | 1,175 | 8 | |||||||
15 | |||||||||
Belgium (1.1%) | |||||||||
Anheuser-Busch InBev | 185 | 10 | |||||||
Brazil (0.8%) | |||||||||
Porto Seguro | 600 | 7 | |||||||
Canada (7.0%) | |||||||||
Cenovus Energy | 220 | 8 | |||||||
Goldcorp, Inc. | 315 | 17 | |||||||
New Gold* | 1,205 | 16 | |||||||
Potash Corp. of Saskatchewan | 205 | 12 | |||||||
Silver Wheaton | 310 | 12 | |||||||
65 | |||||||||
Chile (1.6%) | |||||||||
Sociedad Quimica y Minera de Chile ADR, B Shares | 235 | 15 | |||||||
China (2.6%) | |||||||||
Bank of China, H Shares | 18,000 | 7 | |||||||
China Mobile | 1,150 | 12 | |||||||
China Vanke, B Shares | 3,800 | 5 | |||||||
24 | |||||||||
France (5.9%) | |||||||||
Alcatel-Lucent* | 3,114 | 12 | |||||||
Eutelsat Communications | 345 | 15 | |||||||
LVMH Moet Hennessy Louis Vuitton | 70 | 12 | |||||||
Schneider Electric | 120 | 16 | |||||||
55 | |||||||||
Germany (5.1%) | |||||||||
Deutsche Boerse* | 205 | 12 | |||||||
Deutsche Telekom | 650 | 8 |
Fresenius Medical Care | 195 | $13 | |||||||
Linde AG | 87 | 14 | |||||||
47 | |||||||||
Japan (1.9%) | |||||||||
Jupiter Telecommunications | 16 | 18 | |||||||
Korea (4.7%) | |||||||||
Hyundai Mobis | 72 | 22 | |||||||
Samsung Electronics | 14 | 10 | |||||||
Shinhan Financial Group | 260 | 11 | |||||||
43 | |||||||||
Netherlands (4.3%) | |||||||||
Akzo Nobel | 205 | 10 | |||||||
Koninklijke Ahold | 1,015 | 12 | |||||||
NXP Semiconductors* | 375 | 6 | |||||||
Unilever NV | 355 | 12 | |||||||
40 | |||||||||
Norway (0.9%) | |||||||||
DnB NOR | 680 | 8 | |||||||
Sweden (1.3%) | |||||||||
Telefonaktiebolaget LM Ericsson, B Shares | 1,020 | 12 | |||||||
Switzerland (5.3%) | |||||||||
Nestle SA | 190 | 12 | |||||||
Novartis AG | 190 | 11 | |||||||
Roche Holding | 56 | 10 | |||||||
SGS SA | 9 | 16 | |||||||
49 | |||||||||
United Kingdom (10.6%) | |||||||||
BG Group ADR | 130 | 14 | |||||||
Experian PLC | 1,260 | 15 | |||||||
Rio Tinto ADR | 280 | 17 | |||||||
Subsea 7* | 560 | 13 | |||||||
Tullow Oil | 440 | 8 | |||||||
Vodafone Group | 7,715 | 20 | |||||||
Willis Group Holdings | 285 | 11 | |||||||
98 |
United States (46.5%) | |||||||||
3M Co. | 140 | $12 | |||||||
American Tower Class A* | 335 | 18 | |||||||
Apple Inc.* | 47 | 18 | |||||||
Cabot Oil & Gas | 125 | 9 | |||||||
Celanese Corp. | 205 | 10 | |||||||
Comcast Corp. Class A Special | 450 | 9 | |||||||
Covidien PLC | 345 | 18 | |||||||
CVS Caremark | 425 | 15 | |||||||
Deere & Co. | 95 | 8 | |||||||
Dow Chemical | 215 | 6 | |||||||
FMC Technologies* | 225 | 10 | |||||||
Gilead Sciences* | 220 | 9 | |||||||
Google Inc. Class A* | 10 | 5 | |||||||
IBM | 102 | 17 | |||||||
Ingersoll-Rand PLC | 290 | 10 | |||||||
J.P. Morgan Chase | 270 | 10 | |||||||
Johnson & Johnson | 200 | 13 | |||||||
Laboratory Corp. of America Holdings* | 185 | 15 | |||||||
Lincoln National | 665 | 14 | |||||||
McDonald's Corp. | 150 | 14 | |||||||
MEDNAX, Inc.* | 165 | 11 | |||||||
Microsoft Corp. | 475 | 13 | |||||||
National Oilwell Varco | 185 | 12 | |||||||
Occidental Petroleum | 140 | 12 | |||||||
Oracle Corp. | 575 | 16 | |||||||
Pall Corp. | 230 | 12 | |||||||
Peabody Energy | 180 | 9 | |||||||
Schlumberger Ltd. | 135 | 11 | |||||||
State Street | 230 | 8 | |||||||
Symantec Corp.* | 835 | 14 | |||||||
Time Warner | 305 | 10 | |||||||
United Technologies | 200 | 15 | |||||||
Visa Inc. Class A | 88 | 8 | |||||||
Wal-Mart Stores | 290 | 15 | |||||||
Walter Energy | 70 | 6 | |||||||
Waste Connections | 330 | 11 | |||||||
Wells Fargo | 290 | 8 | |||||||
431 | |||||||||
Total Common Stocks (Cost $1,017) | 937 |
See Notes to Schedule of Investments
103
Number of Shares | Value† (000's)b |
Short-Term Investments (2.1%) | |||||||||
State Street Institutional Liquid Reserves Fund Institutional Class (Cost $20) | 19,946 | $20 | |||||||
Total Investments## (103.3%) (Cost $1,037) | 957 | ||||||||
Liabilities, less cash, receivables and other assets [(3.3%)] | (31 | ) | |||||||
Total Net Assets (100.0%) | $926 |
See Notes to Schedule of Investments
104
SUMMARY SCHEDULE OF INVESTMENTS BY INDUSTRY GLOBAL EQUITY FUND (UNAUDITED) |
Industry | Investments at Value† (000's omitted) | Percentage of Net Assets | |||||||
Metals & Mining | $76 | 8.2 | % | ||||||
Chemicals | 67 | 7.2 | % | ||||||
Oil, Gas & Consumable Fuels | 60 | 6.4 | % | ||||||
Media | 52 | 5.6 | % | ||||||
Wireless Telecommunication Services | 50 | 5.4 | % | ||||||
Energy Equipment & Services | 46 | 5.0 | % | ||||||
Software | 43 | 4.6 | % | ||||||
Food & Staples Retailing | 42 | 4.5 | % | ||||||
Health Care Providers & Services | 39 | 4.2 | % | ||||||
Commercial Banks | 34 | 3.7 | % | ||||||
Pharmaceuticals | 34 | 3.7 | % | ||||||
Insurance | 32 | 3.5 | % | ||||||
Professional Services | 31 | 3.3 | % | ||||||
Machinery | 30 | 3.3 | % | ||||||
IT Services | 25 | 2.7 | % | ||||||
Communications Equipment | 24 | 2.6 | % | ||||||
Food Products | 24 | 2.6 | % | ||||||
Auto Components | 22 | 2.4 | % | ||||||
Diversified Financial Services | 22 | 2.4 | % | ||||||
Computers & Peripherals | 18 | 2.0 | % | ||||||
Health Care Equipment & Supplies | 18 | 2.0 | % | ||||||
Biotechnology | 16 | 1.7 | % | ||||||
Electrical Equipment | 16 | 1.7 | % | ||||||
Semiconductors & Semiconductor Equipment | 16 | 1.7 | % | ||||||
Aerospace & Defense | 15 | 1.6 | % | ||||||
Hotels, Restaurants & Leisure | 14 | 1.5 | % | ||||||
Industrial Conglomerates | 12 | 1.3 | % | ||||||
Textiles, Apparel & Luxury Goods | 12 | 1.3 | % | ||||||
Commercial Services & Supplies | 11 | 1.2 | % | ||||||
Beverages | 10 | 1.1 | % | ||||||
Capital Markets | 8 | 0.9 | % | ||||||
Diversified Telecommunication Services | 8 | 0.9 | % | ||||||
Internet Software & Services | 5 | 0.5 | % | ||||||
Real Estate Management & Development | 5 | 0.5 | % | ||||||
Short-Term Investments and Other Assets/Liabilities—Net | (11 | ) | (1.2 | )% | |||||
$926 | 100.0 | % |
See Notes to Schedule of Investments
105
Schedule of Investments Global Thematic Opportunities Fund
TOP TEN EQUITY HOLDINGS |
Country | Industry | ||||||||||
1 | Alpha Natural Resources | United States | Oil, Gas & Consumable Fuels | 3.0% | |||||||
2 | Franklin Resources | United States | Capital Markets | 2.8% | |||||||
3 | First Tractor, H Shares | China | Machinery | 2.3% | |||||||
4 | Goldcorp, Inc. | Canada | Metals & Mining | 2.3% | |||||||
5 | Sociedad Quimica y Minera de Chile ADR, B Shares | Chile | Chemicals | 2.2% | |||||||
6 | Unilever NV | Netherlands | Food Products | 2.1% | |||||||
7 | Warsaw Stock Exchange | Poland | Diversified Financial Services | 2.1% | |||||||
8 | All America Latina Logistica | Brazil | Road & Rail | 2.0% | |||||||
9 | FANUC Corp. | Japan | Machinery | 2.0% | |||||||
10 | Mahindra & Mahindra GDR | India | Automobiles | 1.9% |
Number of Shares | Value† (000's)b |
Common Stocks (87.0%) | |||||||||
Australia (1.8%) | |||||||||
Treasury Wine Estates* | 132,000 | $502 | |||||||
Brazil (2.0%) | |||||||||
All America Latina Logistica | 96,000 | 557 | |||||||
Canada (12.0%) | |||||||||
Agnico-Eagle Mines | 7,000 | 484 | |||||||
Cenovus Energy | 12,500 | 451 | |||||||
Goldcorp, Inc. | 12,100 | 628 | |||||||
MEG Energy* | 9,800 | 460 | |||||||
NovaGold Resources* | 26,000 | 268 | |||||||
Potash Corp. of Saskatchewan | 8,700 | 504 | |||||||
Silver Wheaton | 13,000 | 515 | |||||||
3,310 | |||||||||
Chile (2.2%) | |||||||||
Sociedad Quimica y Minera de Chile ADR, B Shares | 9,400 | 604 | |||||||
China (4.0%) | |||||||||
ENN Energy Holdings | 135,000 | 464 | |||||||
First Tractor, H Shares | 720,000 | 647 | |||||||
1,111 | |||||||||
France (3.8%) | |||||||||
CFAO | 13,000 | 534 | |||||||
Sanofi ADR | 14,000 | 512 | |||||||
1,046 | |||||||||
Hong Kong (1.8%) | |||||||||
Dah Chong Hong Holdings | 350,000 | 490 | |||||||
India (1.9%) | |||||||||
Mahindra & Mahindra GDR | 33,000 | 538 | |||||||
Indonesia (2.8%) | |||||||||
Ace Hardware Indonesia | 987,500 | $382 | |||||||
PT Adaro Energy Tbk | 1,629,000 | 386 | |||||||
768 | |||||||||
Japan (8.1%) | |||||||||
Asian Citrus Holdings | 289,000 | 210 | |||||||
FANUC Corp. | 3,300 | 544 | |||||||
International Mining Machinery | 70,500 | 72 | |||||||
Kubota Corp. ADR | 12,900 | 535 | |||||||
Mongolian Mining* | 411,000 | 455 | |||||||
Yaskawa Electric | 46,400 | 420 | |||||||
2,236 | |||||||||
Malaysia (1.5%) | |||||||||
Genting Berhad | 133,000 | 420 | |||||||
Netherlands (2.1%) | |||||||||
Unilever NV | 17,400 | 592 | |||||||
Philippines (1.7%) | |||||||||
Energy Development | 3,224,000 | 477 | |||||||
Poland (2.1%) | |||||||||
Warsaw Stock Exchange | 35,000 | 576 | |||||||
South Africa (1.7%) | |||||||||
MTN Group | 23,200 | 478 | |||||||
Thailand (1.9%) | |||||||||
BEC World Public | 380,000 | 514 | |||||||
United Kingdom (1.7%) | |||||||||
Lonrho PLC* | 1,810,000 | 470 | |||||||
United States (33.9%) | |||||||||
Adecoagro SA* | 43,200 | 459 | |||||||
Alpha Natural Resources* | 25,100 | 830 | |||||||
Cypress Semiconductor* | 12,100 | 192 | |||||||
FMC Technologies* | 10,900 | 485 |
Franklin Resources | 6,500 | $779 | |||||||
Google Inc. Class A* | 970 | 525 | |||||||
Gran Tierra Energy* | 36,000 | 225 | |||||||
Halliburton Co. | 12,000 | 532 | |||||||
Honeywell International | 10,800 | 516 | |||||||
Invesco Ltd. | 25,900 | 474 | |||||||
Las Vegas Sands* | 7,600 | 354 | |||||||
Legg Mason | 16,800 | 478 | |||||||
Lindsay Corp. | 6,200 | 386 | |||||||
Norfolk Southern | 3,500 | 237 | |||||||
PetroChina Co. ADR | 4,100 | 527 | |||||||
Philip Morris International | 7,300 | 506 | |||||||
Schlumberger Ltd. | 5,800 | 453 | |||||||
Southwestern Energy* | 11,800 | 448 | |||||||
United Parcel Service Class B | 7,100 | 478 | |||||||
Valmont Industries | 5,200 | 481 | |||||||
9,365 | |||||||||
Total Common Stocks (Cost $25,063) | 24,054 | ||||||||
Short-Term Investments (13.9%) | |||||||||
State Street Institutional Treasury Money Market Fund Institutional Class (Cost $3,864) | 3,863,910 | 3,864 | |||||||
Total Investments## (100.9%) (Cost $28,927) | 27,918 | ||||||||
Liabilities, less cash, receivables and other assets [(0.9%)] | (262 | ) | |||||||
Total Net Assets (100.0%) | $27,656 |
See Notes to Schedule of Investments
106
SUMMARY SCHEDULE OF INVESTMENTS BY INDUSTRY GLOBAL THEMATIC OPPORTUNITIES FUND (UNAUDITED) |
Industry | Investments at Value† (000's omitted) | Percentage of Net Assets | |||||||
Oil, Gas & Consumable Fuels | $3,327 | 12.0 | % | ||||||
Machinery | 2,665 | 9.6 | % | ||||||
Metals & Mining | 2,350 | 8.5 | % | ||||||
Capital Markets | 1,731 | 6.3 | % | ||||||
Energy Equipment & Services | 1,470 | 5.3 | % | ||||||
Food Products | 1,261 | 4.6 | % | ||||||
Chemicals | 1,108 | 4.0 | % | ||||||
Distributors | 1,024 | 3.7 | % | ||||||
Road & Rail | 794 | 2.9 | % | ||||||
Hotels, Restaurants & Leisure | 774 | 2.8 | % | ||||||
Diversified Financial Services | 576 | 2.1 | % | ||||||
Automobiles | 538 | 1.9 | % | ||||||
Internet Software & Services | 525 | 1.9 | % | ||||||
Aerospace & Defense | 516 | 1.9 | % | ||||||
Media | 514 | 1.9 | % | ||||||
Pharmaceuticals | 512 | 1.9 | % | ||||||
Tobacco | 506 | 1.8 | % | ||||||
Beverages | 502 | 1.8 | % | ||||||
Wireless Telecommunication Services | 478 | 1.7 | % | ||||||
Air Freight & Logistics | 478 | 1.7 | % | ||||||
Independent Power Producers & Energy Traders | 477 | 1.7 | % | ||||||
Industrial Conglomerates | 470 | 1.7 | % | ||||||
Gas Utilities | 464 | 1.7 | % | ||||||
Electrical Equipment & Instruments | 420 | 1.5 | % | ||||||
Specialty Retail | 382 | 1.4 | % | ||||||
Semiconductors & Semiconductor Equipment | 192 | 0.7 | % | ||||||
Short-Term Investments and Other Assets—Net | 3,602 | 13.0 | % | ||||||
$27,656 | 100.0 | % |
See Notes to Schedule of Investments
107
Schedule of Investments Guardian Fund
TOP TEN EQUITY HOLDINGS |
1 | BG Group | 4.5 | % | ||||||
2 | Danaher Corp. | 4.3 | % | ||||||
3 | C.R. Bard | 4.0 | % | ||||||
4 | Google Inc. Class A | 4.0 | % | ||||||
5 | Newfield Exploration | 4.0 | % | ||||||
6 | Target Corp. | 4.0 | % | ||||||
7 | Procter & Gamble | 3.9 | % | ||||||
8 | Progressive Corp. | 3.8 | % | ||||||
9 | Schlumberger Ltd. | 3.8 | % | ||||||
10 | Texas Instruments | 3.7 | % |
Number of Shares | Value† (000's)b |
Common Stocks (98.0%) | |||||||||
Beverages (2.6%) | |||||||||
Coca-Cola | 412,800 | $29,082 | |||||||
Capital Markets (7.5%) | |||||||||
Bank of New York Mellon | 780,258 | 16,128 | |||||||
BlackRock, Inc. | 181,250 | 29,861 | |||||||
Charles Schwab | 3,075,655 | 37,923 | |||||||
83,912 | |||||||||
Chemicals (3.4%) | |||||||||
Ecolab Inc. | 698,100 | 37,418 | |||||||
Commercial Services & Supplies (2.9%) | |||||||||
Republic Services | 1,078,250 | 32,736 | |||||||
Electronic Equipment, Instruments & Components (5.1%) | |||||||||
Anixter International | 507,785 | 29,964 | |||||||
National Instruments | 1,070,571 | 27,225 | |||||||
57,189 | |||||||||
Energy Equipment & Services (6.3%) | |||||||||
Cameron International* | 535,725 | 27,836 | |||||||
Schlumberger Ltd. | 536,580 | 41,918 | |||||||
69,754 | |||||||||
Food Products (2.3%) | |||||||||
McCormick & Company | 531,184 | 25,385 | |||||||
Health Care Equipment & Supplies (7.3%) | |||||||||
C.R. Bard | 466,500 | 44,439 | |||||||
Covidien PLC | 709,810 | 37,038 | |||||||
81,477 | |||||||||
Household Products (3.9%) | |||||||||
Procter & Gamble | 681,975 | 43,428 | |||||||
Industrial Conglomerates (7.4%) | |||||||||
3M Co. | 416,125 | 34,530 | |||||||
Danaher Corp. | 1,036,254 | 47,471 | |||||||
82,001 | |||||||||
Industrial Gases (2.1%) | |||||||||
Praxair, Inc. | 239,331 | 23,572 | |||||||
Insurance (3.8%) | |||||||||
Progressive Corp. | 2,191,550 | $42,034 | |||||||
Internet Software & Services (7.1%) | |||||||||
Google Inc. Class A* | 81,845 | 44,275 | |||||||
Yahoo! Inc.* | 2,524,050 | 34,340 | |||||||
78,615 | |||||||||
IT Services (2.5%) | |||||||||
MasterCard, Inc. Class A | 83,275 | 27,457 | |||||||
Media (5.0%) | |||||||||
Comcast Corp. Class A Special | 996,175 | 21,079 | |||||||
Scripps Networks Interactive Class A | 796,435 | 34,127 | |||||||
55,206 | |||||||||
Multiline Retail (4.0%) | |||||||||
Target Corp. | 849,900 | 43,914 | |||||||
Oil, Gas & Consumable Fuels (8.4%) | |||||||||
BG Group | 2,293,294 | 49,586 | |||||||
Newfield Exploration* | 866,325 | 44,226 | |||||||
93,812 | |||||||||
Pharmaceuticals (6.3%) | |||||||||
Hospira, Inc.* | 780,545 | 36,061 | |||||||
Roche Holding | 191,919 | 33,604 | |||||||
69,665 | |||||||||
Road & Rail (1.3%) | |||||||||
Canadian National Railway | 197,635 | 14,585 | |||||||
Semiconductors & Semiconductor Equipment (6.5%) | |||||||||
Altera Corp. | 859,574 | 31,280 | |||||||
Texas Instruments | 1,549,775 | 40,619 | |||||||
71,899 | |||||||||
Trading Companies & Distributors (2.3%) | |||||||||
W.W. Grainger | 168,990 | 26,041 | |||||||
Total Common Stocks (Cost $928,192) | 1,089,182 | ||||||||
Short-Term Investments (1.1%) | |||||||||
State Street Institutional Treasury Money Market Fund Institutional Class (Cost $12,057) | 12,056,643 | $ | 12,057 | ||||||
Total Investments## (99.1%) (Cost $940,249) | 1,101,239 | ||||||||
Cash, receivables and other assets, less liabilities (0.9%) | 10,390 | ||||||||
Total Net Assets (100.0%) | $ | 1,111,629 |
See Notes to Schedule of Investments
108
Schedule of Investments International Fund
TOP TEN EQUITY HOLDINGS |
Country | Industry | ||||||||||||
1 | Vodafone Group | United Kingdom | Wireless Telecommunication Services | 2.2 | % | ||||||||
2 | Hyundai Mobis | Korea | Auto Components | 2.0 | % | ||||||||
3 | Nihon Kohden | Japan | Health Care Equipment & Supplies | 2.0 | % | ||||||||
4 | Jupiter Telecommunications | Japan | Media | 1.9 | % | ||||||||
5 | Sodexo | France | Hotels, Restaurants & Leisure | 1.9 | % | ||||||||
6 | Sulzer AG | Switzerland | Machinery | 1.8 | % | ||||||||
7 | Chemring Group | United Kingdom | Aerospace & Defense | 1.6 | % | ||||||||
8 | SGS SA | Switzerland | Professional Services | 1.5 | % | ||||||||
9 | Unilever NV | Netherlands | Food Products | 1.5 | % | ||||||||
10 | Roche Holding | Switzerland | Pharmaceuticals | 1.5 | % |
Number of Shares | Value† (000's)b |
Common Stocks (97.1%) | |||||||||
Australia (2.3%) | |||||||||
CSL Ltd. | 97,920 | $2,943 | |||||||
Fortescue Metals Group | 357,465 | 2,312 | |||||||
Imdex Ltd. | 733,700 | 1,686 | |||||||
6,941 | |||||||||
Austria (0.6%) | |||||||||
Vienna Insurance Group Wiener Staedtische Versicherung | 39,810 | 1,855 | |||||||
Belgium (2.3%) | |||||||||
Anheuser-Busch InBev | 32,169 | 1,777 | |||||||
Colruyt SA | 68,045 | 3,561 | |||||||
Telenet Group Holding* | 35,437 | 1,437 | |||||||
6,775 | |||||||||
Brazil (1.3%) | |||||||||
HRT Participacoes em Petroleo* | 2,500 | 1,647 | |||||||
Porto Seguro | 33,200 | 409 | |||||||
TOTVS SA | 105,625 | 1,898 | |||||||
3,954 | |||||||||
Canada (10.9%) | |||||||||
Cenovus Energy | 45,400 | 1,641 | |||||||
Corus Entertainment, B Shares | 160,878 | 3,345 | |||||||
Goldcorp, Inc. | 82,300 | 4,286 | |||||||
MacDonald, Dettwiler | 59,120 | 2,942 | |||||||
Neo Material Technologies* | 305,400 | 2,797 | |||||||
New Gold* | 309,100 | 4,198 | |||||||
Peyto Exploration & Development | 145,200 | 3,274 | |||||||
Potash Corp. of Saskatchewan | 73,697 | 4,249 | |||||||
Silver Wheaton | 93,800 | 3,717 | |||||||
Vermilion Energy | 51,962 | 2,429 | |||||||
32,878 |
Chile (1.2%) | |||||||||
Sociedad Quimica y Minera de Chile ADR, B Shares | 56,980 | $3,663 | |||||||
China (2.8%) | |||||||||
Bank of China, H Shares | 5,732,400 | 2,371 | |||||||
China Liansu Group Holdings | 3,093,600 | 1,597 | |||||||
China Mobile ADR | 54,165 | 2,772 | |||||||
China Vanke, B Shares | 1,299,789 | 1,669 | |||||||
8,409 | |||||||||
Denmark (2.9%) | |||||||||
Novo Nordisk Class B | 28,469 | 3,038 | |||||||
Sydbank AS | 128,850 | 2,609 | |||||||
Trygvesta AS | 54,430 | 3,045 | |||||||
8,692 | |||||||||
France (7.9%) | |||||||||
Alcatel-Lucent* | 859,146 | 3,169 | |||||||
BNP Paribas | 25,470 | 1,312 | |||||||
CFAO | 84,975 | 3,491 | |||||||
Cie Generale des Etablissements Michelin Class B | 20,814 | 1,525 | |||||||
CNP Assurances | 132,527 | 2,344 | |||||||
Eutelsat Communications | 83,758 | 3,730 | |||||||
LVMH Moet Hennessy Louis Vuitton | 16,255 | 2,754 | |||||||
Sodexo | 75,715 | 5,636 | |||||||
23,961 | |||||||||
Germany (6.3%) | |||||||||
Brenntag AG | 40,155 | 4,135 | |||||||
Deutsche Boerse* | 64,312 | 3,728 | |||||||
Deutsche Telekom | 206,355 | 2,611 | |||||||
Fresenius Medical Care | 64,513 | 4,390 | |||||||
Linde AG | 26,109 | 3,998 | |||||||
18,862 |
India (0.6%) | |||||||||
Bank of Baroda | 118,625 | $1,903 | |||||||
Ireland (0.7%) | |||||||||
DCC PLC | 73,921 | 2,018 | |||||||
Japan (9.8%) | |||||||||
Brother Industries | 224,400 | 2,936 | |||||||
Circle K Sunkus | 147,200 | 2,463 | |||||||
Jupiter Telecommunications | 5,210 | 5,804 | |||||||
KDDI Corp. | 510 | 3,797 | |||||||
Kenedix Realty Investment | 821 | 2,914 | |||||||
Makita Corp. | 65,400 | 2,699 | |||||||
Nihon Kohden | 228,900 | 5,934 | |||||||
Sundrug Co. | 95,100 | 3,007 | |||||||
29,554 | |||||||||
Korea (3.8%) | |||||||||
Hyundai Mobis | 19,312 | 6,100 | |||||||
Samsung Electronics | 3,194 | 2,228 | |||||||
Shinhan Financial Group | 74,095 | 3,118 | |||||||
11,446 | |||||||||
Netherlands (7.7%) | |||||||||
Akzo Nobel | 46,476 | 2,366 | |||||||
Fugro NV | 37,736 | 2,287 | |||||||
Imtech NV | 109,200 | 3,173 | |||||||
Koninklijke Ahold | 262,409 | 3,057 | |||||||
Nutreco Holding | 64,965 | 4,423 | |||||||
Sligro Food GroupÑ | 99,198 | 3,405 | |||||||
Unilever NV | 132,508 | 4,486 | |||||||
23,197 | |||||||||
Norway (1.9%) | |||||||||
DnB NOR | 240,395 | 2,902 | |||||||
Prosafe ASA | 368,755 | 2,696 | |||||||
5,598 | |||||||||
South Africa (1.2%) | |||||||||
MTN Group | 176,297 | 3,636 |
See Notes to Schedule of Investments
109
Number of Shares | Value† (000's)b |
Sweden (2.3%) | |||||||||
Elekta AB, B Shares | 71,065 | $2,662 | |||||||
Nordea Bank | 155,025 | 1,430 | |||||||
Telefonaktiebolaget LM Ericsson, B Shares | 262,535 | 2,962 | |||||||
7,054 | |||||||||
Switzerland (11.2%) | |||||||||
Bucher Industries | 15,683 | 2,851 | |||||||
Credit Suisse Group* | 108,012 | 3,091 | |||||||
Givaudan SA | 4,045 | 3,910 | |||||||
Nestle SA | 57,892 | 3,585 | |||||||
Novartis AG | 58,026 | 3,384 | |||||||
Roche Holding | 25,325 | 4,434 | |||||||
SGS SA | 2,441 | 4,544 | |||||||
Sika AG | 1,128 | 2,548 | |||||||
Sulzer AG | 40,931 | 5,511 | |||||||
33,858 | |||||||||
Turkey (0.5%) | |||||||||
Sinpas Gayrimenkul Yatirim Ortakligi | 1,718,230 | 1,563 | |||||||
United Kingdom (18.9%) | |||||||||
Amlin PLC | 609,327 | 3,085 | |||||||
Avanti Communications Group* | 47,083 | 255 | |||||||
Avanti Communications Groupñ* | 117,100 | 635 | |||||||
BG Group | 166,070 | 3,591 | |||||||
BHP Billiton | 68,200 | 2,332 | |||||||
Bunzl PLC | 263,805 | 3,426 | |||||||
Chemring Group | 536,665 | 4,878 | |||||||
Diploma PLC | 285,000 | 1,462 | |||||||
Experian PLC | 260,751 | 2,978 | |||||||
Fidessa Group | 60,759 | 1,599 | |||||||
Informa PLC | 335,582 | 1,925 | |||||||
Jazztel PLC* | 144,600 | 702 | |||||||
Jazztel PLCñ* | 161,400 | 784 | |||||||
Mitie Group | 925,322 | 3,336 | |||||||
Reed Elsevier | 342,152 | 2,794 | |||||||
Rio Tinto ADR | 43,100 | 2,636 | |||||||
RPS Group | 713,089 | 2,314 | |||||||
Subsea 7* | 143,133 | 3,327 | |||||||
Synergy HealthÑ | 177,118 | 2,609 | |||||||
Tullow Oil | 140,361 | 2,449 | |||||||
Vodafone Group | 2,484,101 | 6,492 | |||||||
Willis Group Holdings | 88,900 | 3,479 | |||||||
57,088 | |||||||||
Total Common Stocks (Cost $246,513) | 292,905 | ||||||||
Preferred Stocks (0.0%) | |||||||||
Brazil (0.0%) | |||||||||
Refinaria de Petroleo IpirangaÑ*^^ (Cost $8) | 19,056 | 12 | |||||||
Rights (0.0%) | |||||||||
Belgium (0.0%) | |||||||||
Anheuser-Busch InBev VVPR StripÑ* (Cost $0) | 177,256 | $0 | |||||||
Short-Term Investments (2.8%) | |||||||||
State Street Institutional Liquid Reserves Fund Institutional Class (Cost $8,532) | 8,531,650 | 8,532 | |||||||
Total Investments## (99.9%) (Cost $255,053) | 301,449 | ||||||||
Cash, receivables and other assets, less liabilities (0.1%) | 258 | ||||||||
Total Net Assets (100.0%) | $301,707 |
See Notes to Schedule of Investments
110
SUMMARY SCHEDULE OF INVESTMENTS BY INDUSTRY INTERNATIONAL FUND (UNAUDITED) |
Industry | Investments at Value† (000's omitted) | Percentage of Net Assets | |||||||
Chemicals | $23,531 | 7.8 | % | ||||||
Metals & Mining | 21,167 | 7.0 | % | ||||||
Media | 17,598 | 5.8 | % | ||||||
Wireless Telecommunication Services | 16,697 | 5.5 | % | ||||||
Commercial Banks | 15,645 | 5.2 | % | ||||||
Food & Staples Retailing | 15,493 | 5.1 | % | ||||||
Oil, Gas & Consumable Fuels | 15,043 | 5.0 | % | ||||||
Insurance | 14,217 | 4.7 | % | ||||||
Food Products | 12,494 | 4.1 | % | ||||||
Machinery | 11,061 | 3.7 | % | ||||||
Pharmaceuticals | 10,856 | 3.6 | % | ||||||
Health Care Equipment & Supplies | 8,596 | 2.8 | % | ||||||
Energy Equipment & Services | 8,310 | 2.8 | % | ||||||
Auto Components | 7,625 | 2.5 | % | ||||||
Trading Companies & Distributors | 7,561 | 2.5 | % | ||||||
Professional Services | 7,522 | 2.5 | % | ||||||
Health Care Providers & Services | 6,999 | 2.3 | % | ||||||
Software | 6,439 | 2.1 | % | ||||||
Communications Equipment | 6,131 | 2.0 | % | ||||||
Commercial Services & Supplies | 5,650 | 1.9 | % | ||||||
Hotels, Restaurants & Leisure | 5,636 | 1.9 | % | ||||||
Aerospace & Defense | 4,878 | 1.6 | % | ||||||
Real Estate Investment Trusts | 4,477 | 1.5 | % | ||||||
Diversified Telecommunication | 3,813 | 1.3 | % | ||||||
Diversified Financial Services | 3,728 | 1.2 | % | ||||||
Distributors | 3,491 | 1.2 | % | ||||||
Construction & Engineering | 3,173 | 1.1 | % | ||||||
Capital Markets | 3,091 | 1.0 | % | ||||||
Biotechnology | 2,943 | 1.0 | % | ||||||
Office Electronics | 2,936 | 1.0 | % | ||||||
Textiles, Apparel & Luxury Goods | 2,754 | 0.9 | % | ||||||
Diversified Telecommunication Services | 2,611 | 0.9 | % | ||||||
Semiconductors & Semiconductor Equipment | 2,228 | 0.7 | % | ||||||
Industrial Conglomerates | 2,018 | 0.7 | % | ||||||
Beverages | 1,777 | 0.6 | % | ||||||
Real Estate Management & Development | 1,669 | 0.6 | % | ||||||
Building Products | 1,597 | 0.5 | % | ||||||
Electronic Equipment, Instruments & Components | 1,462 | 0.5 | % | ||||||
Short-Term Investments and Other Assets—Net | 8,790 | 2.9 | % | ||||||
$301,707 | 100.0 | % |
See Notes to Schedule of Investments
111
Schedule of Investments International Institutional Fund
TOP TEN EQUITY HOLDINGS |
Country | Industry | ||||||||||||
1 | Vodafone Group | United Kingdom | Wireless Telecommunication Services | 2.1 | % | ||||||||
2 | Hyundai Mobis | Korea | Auto Components | 2.0 | % | ||||||||
3 | Nihon Kohden | Japan | Health Care Equipment & Supplies | 1.9 | % | ||||||||
4 | Jupiter Telecommunications | Japan | Media | 1.9 | % | ||||||||
5 | Sodexo | France | Hotels, Restaurants & Leisure | 1.9 | % | ||||||||
6 | Sulzer AG | Switzerland | Machinery | 1.8 | % | ||||||||
7 | Chemring Group | United Kingdom | Aerospace & Defense | 1.6 | % | ||||||||
8 | SGS SA | Switzerland | Professional Services | 1.5 | % | ||||||||
9 | Unilever NV | Netherlands | Food Products | 1.5 | % | ||||||||
10 | Roche Holding | Switzerland | Pharmaceuticals | 1.5 | % |
Number of Shares | Value† (000's)b |
Common Stocks (95.9%) | |||||||||
Australia (2.3%) | |||||||||
CSL Ltd. | 110,455 | $3,320 | |||||||
Fortescue Metals Group | 402,195 | 2,601 | |||||||
Imdex Ltd. | 812,300 | 1,867 | |||||||
7,788 | |||||||||
Austria (0.6%) | |||||||||
Vienna Insurance Group Wiener Staedtische Versicherung | 44,790 | 2,087 | |||||||
Belgium (2.2%) | |||||||||
Anheuser-Busch InBev | 36,196 | 1,999 | |||||||
Colruyt SA | 76,555 | 4,007 | |||||||
Telenet Group Holding* | 39,871 | 1,617 | |||||||
7,623 | |||||||||
Brazil (1.3%) | |||||||||
HRT Participacoes em Petroleo* | 2,800 | 1,845 | |||||||
Porto Seguro | 37,100 | 457 | |||||||
TOTVS SA | 118,900 | 2,136 | |||||||
4,438 | |||||||||
Canada (10.8%) | |||||||||
Cenovus Energy | 51,100 | 1,847 | |||||||
Corus Entertainment, B Shares | 181,018 | 3,763 | |||||||
Goldcorp, Inc. | 92,000 | 4,791 | |||||||
MacDonald, Dettwiler | 65,827 | 3,276 | |||||||
Neo Material Technologies* | 343,600 | 3,147 | |||||||
New Gold* | 345,700 | 4,695 | |||||||
Peyto Exploration & Development | 163,400 | 3,684 | |||||||
Potash Corp. of Saskatchewan | 82,404 | 4,751 | |||||||
Silver Wheaton | 105,500 | 4,181 | |||||||
Vermilion Energy | 58,482 | 2,734 | |||||||
36,869 |
Chile (1.2%) | |||||||||
Sociedad Quimica y Minera de Chile ADR, B Shares | 64,105 | $4,121 | |||||||
China (2.8%) | |||||||||
Bank of China, H Shares | 6,450,200 | 2,668 | |||||||
China Liansu Group Holdings | 3,480,600 | 1,797 | |||||||
China Mobile ADR | 60,970 | 3,120 | |||||||
China Vanke, B Shares | 1,462,400 | 1,878 | |||||||
9,463 | |||||||||
Denmark (2.9%) | |||||||||
Novo Nordisk Class B | 32,031 | 3,419 | |||||||
Sydbank AS | 144,976 | 2,935 | |||||||
Trygvesta AS | 61,242 | 3,426 | |||||||
9,780 | |||||||||
France (7.9%) | |||||||||
Alcatel-Lucent* | 975,387 | 3,598 | |||||||
BNP Paribas | 28,658 | 1,477 | |||||||
CFAO | 95,605 | 3,927 | |||||||
Cie Generale des Etablissements Michelin Class B | 23,414 | 1,715 | |||||||
CNP Assurances | 149,109 | 2,637 | |||||||
Eutelsat Communications | 94,234 | 4,196 | |||||||
LVMH Moet Hennessy Louis Vuitton | 18,290 | 3,099 | |||||||
Sodexo | 85,190 | 6,342 | |||||||
26,991 | |||||||||
Germany (6.2%) | |||||||||
Brenntag AG | 45,180 | 4,653 | |||||||
Deutsche Boerse* | 72,110 | 4,180 | |||||||
Deutsche Telekom | 232,180 | 2,937 | |||||||
Fresenius Medical Care | 72,587 | 4,939 | |||||||
Linde AG | 29,380 | 4,499 | |||||||
21,208 |
India (0.3%) | |||||||||
Bank of Baroda | 74,730 | $1,199 | |||||||
Ireland (0.7%) | |||||||||
DCC PLC | 83,166 | 2,270 | |||||||
Japan (9.7%) | |||||||||
Brother Industries | 252,500 | 3,304 | |||||||
Circle K Sunkus | 165,600 | 2,771 | |||||||
Jupiter Telecommunications | 5,857 | 6,525 | |||||||
KDDI Corp. | 574 | 4,273 | |||||||
Kenedix Realty Investment | 927 | 3,291 | |||||||
Makita Corp. | 73,600 | 3,037 | |||||||
Nihon Kohden | 257,500 | 6,675 | |||||||
Sundrug Co. | 107,000 | 3,383 | |||||||
33,259 | |||||||||
Korea (3.8%) | |||||||||
Hyundai Mobis | 21,730 | 6,864 | |||||||
Samsung Electronics | 3,596 | 2,508 | |||||||
Shinhan Financial Group | 83,370 | 3,509 | |||||||
12,881 | |||||||||
Netherlands (7.6%) | |||||||||
Akzo Nobel | 52,390 | 2,667 | |||||||
Fugro NV | 42,457 | 2,573 | |||||||
Imtech NV | 123,975 | 3,602 | |||||||
Koninklijke Ahold | 295,246 | 3,440 | |||||||
Nutreco Holding | 73,099 | 4,977 | |||||||
Sligro Food GroupÑ | 111,610 | 3,831 | |||||||
Unilever NV | 149,088 | 5,047 | |||||||
26,137 | |||||||||
Norway (1.8%) | |||||||||
DnB NOR | 270,474 | 3,265 | |||||||
Prosafe ASA | 414,895 | 3,033 | |||||||
6,298 | |||||||||
South Africa (1.2%) | |||||||||
MTN Group | 198,356 | 4,091 |
See Notes to Schedule of Investments
112
Number of Shares | Value† (000's)b |
Sweden (2.3%) | |||||||||
Elekta AB, B Shares | 80,155 | $3,002 | |||||||
Nordea Bank | 174,420 | 1,609 | |||||||
Telefonaktiebolaget LM Ericsson, B Shares | 297,975 | 3,362 | |||||||
7,973 | |||||||||
Switzerland (11.1%) | |||||||||
Bucher Industries | 17,645 | 3,208 | |||||||
Credit Suisse Group* | 121,806 | 3,486 | |||||||
Givaudan SA | 4,551 | 4,399 | |||||||
Nestle SA | 65,131 | 4,034 | |||||||
Novartis AG | 65,291 | 3,807 | |||||||
Roche Holding | 28,559 | 5,000 | |||||||
SGS SA | 2,744 | 5,108 | |||||||
Sika AG | 1,256 | 2,837 | |||||||
Sulzer AG | 46,052 | 6,200 | |||||||
38,079 | |||||||||
Turkey (0.5%) | |||||||||
Sinpas Gayrimenkul Yatirim Ortakligi | 1,933,230 | 1,759 | |||||||
United Kingdom (18.7%) | |||||||||
Amlin PLC | 685,575 | 3,471 | |||||||
Avanti Communications Groupñ* | 57,319 | 311 | |||||||
Avanti Communications Group* | 124,874 | 677 | |||||||
BG Group | 186,850 | 4,040 | |||||||
BHP Billiton | 77,100 | 2,636 | |||||||
Bunzl PLC | 296,813 | 3,855 | |||||||
Chemring Group | 603,820 | 5,489 | |||||||
Diploma PLC | 317,200 | 1,627 | |||||||
Experian PLC | 293,381 | 3,350 | |||||||
Fidessa Group | 68,365 | 1,799 | |||||||
Informa PLC | 377,576 | 2,166 | |||||||
Jazztel PLCñ* | 79,300 | 385 | |||||||
Jazztel PLC* | 263,670 | 1,280 | |||||||
Mitie Group | 1,041,033 | 3,753 | |||||||
Reed Elsevier | 384,964 | 3,143 | |||||||
Rio Tinto ADR | 48,500 | 2,966 | |||||||
RPS GroupÑ | 802,323 | 2,604 | |||||||
Subsea 7* | 160,114 | 3,722 | |||||||
Synergy HealthÑ | 199,280 | 2,936 | |||||||
Tullow Oil | 157,922 | 2,756 | |||||||
Vodafone Group | 2,793,529 | 7,301 | |||||||
Willis Group Holdings | 100,000 | 3,913 | |||||||
64,180 | |||||||||
Total Common Stocks (Cost $316,324) | 328,494 | ||||||||
Rights (0.0%) | |||||||||
Belgium (0.0%) | |||||||||
Anheuser-Busch InBev VVPR StripÑ* (Cost $0) | 125,976 | 0 | |||||||
Short-Term Investments (3.7%) | |||||||||
State Street Institutional Liquid Reserves Fund Institutional Class (Cost $12,608) | 12,607,833 | $12,608 | |||||||
Total Investments## (99.6%) (Cost $328,932) | 341,102 | ||||||||
Cash, receivables and other assets, less liabilities (0.4%) | 1,495 | ||||||||
Total Net Assets (100.0%) | $342,597 |
See Notes to Schedule of Investments
113
SUMMARY SCHEDULE OF INVESTMENTS BY INDUSTRY INTERNATIONAL INSTITUTIONAL FUND (UNAUDITED) |
Industry | Investments at Value† (000's omitted) | Percentage of Net Assets | |||||||
Chemicals | $26,421 | 7.7 | % | ||||||
Metals & Mining | 23,737 | 6.9 | % | ||||||
Media | 19,793 | 5.8 | % | ||||||
Wireless Telecommunication Services | 18,785 | 5.5 | % | ||||||
Food & Staples Retailing | 17,432 | 5.1 | % | ||||||
Oil, Gas & Consumable Fuels | 16,906 | 4.9 | % | ||||||
Commercial Banks | 16,662 | 4.8 | % | ||||||
Insurance | 15,991 | 4.7 | % | ||||||
Food Products | 14,058 | 4.1 | % | ||||||
Machinery | 12,445 | 3.6 | % | ||||||
Pharmaceuticals | 12,226 | 3.6 | % | ||||||
Health Care Equipment & Supplies | 9,677 | 2.8 | % | ||||||
Energy Equipment & Services | 9,328 | 2.7 | % | ||||||
Auto Components | 8,579 | 2.5 | % | ||||||
Trading Companies & Distributors | 8,508 | 2.5 | % | ||||||
Professional Services | 8,458 | 2.5 | % | ||||||
Health Care Providers & Services | 7,875 | 2.3 | % | ||||||
Software | 7,211 | 2.1 | % | ||||||
Communications Equipment | 6,960 | 2.0 | % | ||||||
Commercial Services & Supplies | 6,357 | 1.9 | % | ||||||
Hotels, Restaurants & Leisure | 6,342 | 1.9 | % | ||||||
Aerospace & Defense | 5,489 | 1.6 | % | ||||||
Real Estate Investment Trusts | 5,050 | 1.5 | % | ||||||
Diversified Telecommunication | 4,270 | 1.2 | % | ||||||
Diversified Financial Services | 4,180 | 1.2 | % | ||||||
Distributors | 3,927 | 1.1 | % | ||||||
Construction & Engineering | 3,602 | 1.1 | % | ||||||
Capital Markets | 3,486 | 1.0 | % | ||||||
Biotechnology | 3,320 | 1.0 | % | ||||||
Office Electronics | 3,304 | 1.0 | % | ||||||
Textiles, Apparel & Luxury Goods | 3,099 | 0.9 | % | ||||||
Diversified Telecommunication Services | 2,937 | 0.9 | % | ||||||
Semiconductors & Semiconductor Equipment | 2,508 | 0.7 | % | ||||||
Industrial Conglomerates | 2,270 | 0.7 | % | ||||||
Beverages | 1,999 | 0.6 | % | ||||||
Real Estate Management & Development | 1,878 | 0.5 | % | ||||||
Building Products | 1,797 | 0.5 | % | ||||||
Electronic Equipment, Instruments & Components | 1,627 | 0.5 | % | ||||||
Short-Term Investments and Other Assets—Net | 14,103 | 4.1 | % | ||||||
$342,597 | 100.0 | % |
See Notes to Schedule of Investments
114
Schedule of Investments International Large Cap Fund
TOP TEN EQUITY HOLDINGS |
Country | Industry | ||||||||||||
1 | Vodafone Group | United Kingdom | Wireless Telecommunication Services | 2.8 | % | ||||||||
2 | Hyundai Mobis | Korea | Auto Components | 2.3 | % | ||||||||
3 | Jupiter Telecommunications | Japan | Media | 2.2 | % | ||||||||
4 | SGS SA | Switzerland | Professional Services | 2.2 | % | ||||||||
5 | Sulzer AG | Switzerland | Machinery | 2.0 | % | ||||||||
6 | Roche Holding | Switzerland | Pharmaceuticals | 2.0 | % | ||||||||
7 | Sodexo | France | Hotels, Restaurants & Leisure | 1.9 | % | ||||||||
8 | Schneider Electric | France | Electrical Equipment | 1.8 | % | ||||||||
9 | Givaudan SA | Switzerland | Chemicals | 1.8 | % | ||||||||
10 | Unilever NV | Netherlands | Food Products | 1.8 | % |
Number of Shares | Value† (000's)b |
Common Stocks (96.5%) | |||||||||
Australia (1.7%) | |||||||||
CSL Ltd. | 60,735 | $1,826 | |||||||
Fortescue Metals Group | 212,660 | 1,375 | |||||||
3,201 | |||||||||
Austria (0.9%) | |||||||||
Vienna Insurance Group Wiener Staedtische Versicherung | 35,115 | 1,636 | |||||||
Belgium (2.9%) | |||||||||
Anheuser-Busch InBev | 30,017 | 1,658 | |||||||
Colruyt SA | 52,365 | 2,741 | |||||||
Telenet Group Holding* | 26,218 | 1,063 | |||||||
5,462 | |||||||||
Brazil (0.9%) | |||||||||
HRT Participacoes em Petroleo* | 2,100 | 1,384 | |||||||
Porto Seguro | 20,700 | 255 | |||||||
1,639 | |||||||||
Canada (9.5%) | |||||||||
Cenovus Energy | 58,840 | 2,127 | |||||||
Goldcorp, Inc. | 50,600 | 2,635 | |||||||
New Gold* | 190,500 | 2,587 | |||||||
Peyto Exploration & Development | 90,600 | 2,043 | |||||||
Potash Corp. of Saskatchewan | 54,663 | 3,152 | |||||||
Precision Drilling* | 76,400 | 1,066 | |||||||
Silver Wheaton | 58,600 | 2,322 | |||||||
Vermilion Energy | 40,418 | 1,889 | |||||||
17,821 | |||||||||
Chile (1.2%) | |||||||||
Sociedad Quimica y Minera de Chile ADR, B Shares | 35,545 | 2,285 | |||||||
China (2.5%) | |||||||||
Bank of China, H Shares | 3,667,700 | $1,517 | |||||||
China Mobile ADR | 42,615 | 2,181 | |||||||
China Vanke, B Shares | 683,400 | 878 | |||||||
4,576 | |||||||||
Denmark (3.6%) | |||||||||
Jyske Bank* | 56,385 | 1,729 | |||||||
Novo Nordisk Class B | 24,531 | 2,618 | |||||||
Trygvesta AS | 43,425 | 2,429 | |||||||
6,776 | |||||||||
France (9.4%) | |||||||||
Alcatel-Lucent* | 669,005 | 2,468 | |||||||
BNP Paribas | 15,691 | 808 | |||||||
Cie Generale des Etablissements Michelin Class B | 12,997 | 952 | |||||||
CNP Assurances | 99,056 | 1,752 | |||||||
Eutelsat Communications | 66,325 | 2,954 | |||||||
LVMH Moet Hennessy Louis Vuitton | 10,210 | 1,730 | |||||||
Schneider Electric | 25,876 | 3,461 | |||||||
Sodexo | 48,100 | 3,580 | |||||||
17,705 | |||||||||
Germany (8.1%) | |||||||||
Brenntag AG | 25,505 | 2,627 | |||||||
Deutsche Boerse* | 46,687 | 2,706 | |||||||
Deutsche Telekom | 162,490 | 2,055 | |||||||
Fresenius Medical Care | 48,485 | 3,299 | |||||||
Linde AG | 17,050 | 2,611 | |||||||
SAP AG ADR | 35,085 | 1,913 | |||||||
15,211 | |||||||||
India (0.6%) | |||||||||
Bank of Baroda | 65,090 | 1,044 | |||||||
Japan (5.8%) | |||||||||
Brother Industries | 108,300 | 1,417 | |||||||
Jupiter Telecommunications | 3,751 | 4,179 |
KDDI Corp. | 402 | $2,993 | |||||||
Makita Corp. | 55,500 | 2,290 | |||||||
10,879 | |||||||||
Korea (4.4%) | |||||||||
Hyundai Mobis | 13,856 | 4,377 | |||||||
Samsung Electronics | 2,714 | 1,893 | |||||||
Shinhan Financial Group | 46,175 | 1,943 | |||||||
8,213 | |||||||||
Malaysia (0.8%) | |||||||||
Axiata Group Berhad | 972,300 | 1,538 | |||||||
Netherlands (6.3%) | |||||||||
Akzo Nobel | 45,485 | 2,316 | |||||||
Fugro NV | 29,668 | 1,798 | |||||||
Imtech NV | 68,015 | 1,976 | |||||||
Koninklijke Ahold | 204,845 | 2,386 | |||||||
Unilever NV | 100,370 | 3,398 | |||||||
11,874 | |||||||||
Norway (1.0%) | |||||||||
DnB NOR | 150,113 | 1,812 | |||||||
South Africa (1.5%) | |||||||||
MTN Group | 140,586 | 2,899 | |||||||
Sweden (3.0%) | |||||||||
Elekta AB, B Shares | 52,765 | 1,976 | |||||||
Nordea Bank | 143,600 | 1,325 | |||||||
Telefonaktiebolaget LM Ericsson, B Shares | 204,225 | 2,304 | |||||||
5,605 | |||||||||
Switzerland (13.6%) | |||||||||
Credit Suisse Group* | 83,292 | 2,383 | |||||||
Givaudan SA | 3,576 | 3,457 | |||||||
Nestle SA | 45,638 | 2,827 | |||||||
Novartis AG | 46,981 | 2,739 | |||||||
Roche Holding | 21,081 | 3,691 | |||||||
SGS SA | 2,172 | 4,043 | |||||||
Sika AG | 1,151 | 2,600 | |||||||
Sulzer AG | 28,281 | 3,808 | |||||||
25,548 |
See Notes to Schedule of Investments
115
Number of Shares | Value† (000's)b |
United Kingdom (18.8%) | |||||||||
Amlin PLC | 453,791 | $2,298 | |||||||
BG Group | 124,955 | 2,702 | |||||||
BHP Billiton | 42,100 | 1,439 | |||||||
Bunzl PLC | 206,432 | 2,681 | |||||||
Experian PLC | 239,549 | 2,736 | |||||||
Informa PLC | 356,676 | 2,046 | |||||||
Reed Elsevier | 278,699 | 2,276 | |||||||
Rio Tinto ADR | 35,500 | 2,171 | |||||||
Sage Group | 457,615 | 1,873 | |||||||
Subsea 7* | 110,105 | 2,559 | |||||||
Tesco PLC | 402,197 | 2,472 | |||||||
Tullow Oil | 117,066 | 2,043 | |||||||
Vodafone Group | 1,998,614 | 5,223 | |||||||
Willis Group Holdings | 69,700 | 2,727 | |||||||
35,246 | |||||||||
Total Common Stocks (Cost $165,405) | 180,970 | ||||||||
Rights (0.0%) | |||||||||
Belgium (0.0%) | |||||||||
Anheuser-Busch InBev VVPR Strip* (Cost $0) | 63,890 | 0 | |||||||
Short-Term Investments (2.9%) | |||||||||
State Street Institutional Liquid Reserves Fund Institutional Class (Cost $5,466) | 5,465,872 | 5,466 | |||||||
Total Investments## (99.4%) (Cost $170,871) | 186,436 | ||||||||
Cash, receivables and other assets, less liabilities (0.6%) | 1,039 | ||||||||
Total Net Assets (100.0%) | $187,475 |
See Notes to Schedule of Investments
116
SUMMARY SCHEDULE OF INVESTMENTS BY INDUSTRY INTERNATIONAL LARGE CAP FUND (UNAUDITED) |
Industry | Investments at Value† (000's omitted) | Percentage of Net Assets | |||||||
Chemicals | $16,421 | 8.7 | % | ||||||
Wireless Telecommunication Services | 14,834 | 7.9 | % | ||||||
Metals & Mining | 12,529 | 6.7 | % | ||||||
Oil, Gas & Consumable Fuels | 12,188 | 6.5 | % | ||||||
Media | 11,455 | 6.1 | % | ||||||
Insurance | 11,097 | 5.9 | % | ||||||
Commercial Banks | 10,178 | 5.4 | % | ||||||
Pharmaceuticals | 9,048 | 4.8 | % | ||||||
Food & Staples Retailing | 7,599 | 4.1 | % | ||||||
Professional Services | 6,779 | 3.6 | % | ||||||
Food Products | 6,225 | 3.3 | % | ||||||
Machinery | 6,098 | 3.3 | % | ||||||
Energy Equipment & Services | 5,423 | 2.9 | % | ||||||
Auto Components | 5,329 | 2.8 | % | ||||||
Trading Companies & Distributors | 5,308 | 2.8 | % | ||||||
Communications Equipment | 4,772 | 2.5 | % | ||||||
Software | 3,786 | 2.0 | % | ||||||
Hotels, Restaurants & Leisure | 3,580 | 1.9 | % | ||||||
Electrical Equipment | 3,461 | 1.8 | % | ||||||
Health Care Providers & Services | 3,299 | 1.8 | % | ||||||
Diversified Financial Services | 2,706 | 1.4 | % | ||||||
Capital Markets | 2,383 | 1.3 | % | ||||||
Diversified Telecommunication Services | 2,055 | 1.1 | % | ||||||
Construction & Engineering | 1,976 | 1.1 | % | ||||||
Health Care Equipment & Supplies | 1,976 | 1.1 | % | ||||||
Semiconductors & Semiconductor Equipment | 1,893 | 1.0 | % | ||||||
Biotechnology | 1,826 | 1.0 | % | ||||||
Textiles, Apparel & Luxury Goods | 1,730 | 0.9 | % | ||||||
Beverages | 1,658 | 0.9 | % | ||||||
Office Electronics | 1,417 | 0.8 | % | ||||||
Diversified Telecommunication | 1,063 | 0.6 | % | ||||||
Real Estate Management & Development | 878 | 0.5 | % | ||||||
Short-Term Investments and Other Assets—Net | 6,505 | 3.5 | % | ||||||
$187,475 | 100.0 | % |
See Notes to Schedule of Investments
117
Schedule of Investments Intrinsic Value Fund
TOP TEN EQUITY HOLDINGS |
1 | Crown Holdings | 2.4 | % | ||||||
2 | Verint Systems | 2.1 | % | ||||||
3 | CoreLogic, Inc. | 2.1 | % | ||||||
4 | Avery Dennison | 2.0 | % | ||||||
5 | DST Systems | 2.0 | % | ||||||
6 | Advance Auto Parts | 2.0 | % | ||||||
7 | Constellation Brands | 2.0 | % | ||||||
8 | Pall Corp. | 1.9 | % | ||||||
9 | Lender Processing Services | 1.8 | % | ||||||
10 | Ryder System | 1.7 | % |
Number of Shares | Value† (000's)b |
Common Stocks (95.0%) | |||||||||
Aerospace & Defense (6.1%) | |||||||||
Aerovironment Inc.* | 56,500 | $1,619 | |||||||
Ceradyne, Inc.* | 48,055 | 1,507 | |||||||
Spirit Aerosystems Holdings Class A* | 39,700 | 666 | |||||||
Teledyne Technologies* | 38,552 | 2,105 | |||||||
Textron Inc. | 112,539 | 1,899 | |||||||
7,796 | |||||||||
Beverages (2.0%) | |||||||||
Constellation Brands* | 129,036 | 2,551 | |||||||
Chemicals (2.2%) | |||||||||
Chemtura Corp.* | 123,400 | 1,634 | |||||||
Cytec Industries | 27,400 | 1,244 | |||||||
2,878 | |||||||||
Commercial Banks (6.1%) | |||||||||
Comerica Inc. | 61,974 | 1,586 | |||||||
Huntington Bancshares | 306,500 | 1,542 | |||||||
TCF Financial | 147,600 | 1,541 | |||||||
Texas Capital Bancshares* | 64,100 | 1,645 | |||||||
Umpqua Holdings | 160,600 | 1,569 | |||||||
7,883 | |||||||||
Commercial Services & Supplies (3.5%) | |||||||||
Avery Dennison | 90,036 | 2,621 | |||||||
Covanta Holding | 117,700 | 1,933 | |||||||
4,554 | |||||||||
Communications Equipment (9.8%) | |||||||||
Arris Group* | 193,969 | 2,118 | |||||||
Brocade Communications* | 473,059 | 1,831 | |||||||
Ciena Corp.* | 98,683 | 1,208 | |||||||
Comverse Technology* | 106,858 | 737 | |||||||
Infinera Corp.* | 224,000 | 1,683 | |||||||
Powerwave Technologies* | 746,500 | 1,314 | |||||||
SeaChange International* | 145,226 | 1,142 | |||||||
Sierra Wireless* | 110,774 | 809 | |||||||
Tekelec* | 240,032 | 1,728 | |||||||
12,570 |
Construction & Engineering (1.6%) | |||||||||
KBR, Inc. | 69,300 | $2,082 | |||||||
Containers & Packaging (4.0%) | |||||||||
Crown Holdings* | 86,600 | 3,071 | |||||||
Sealed Air | 115,458 | 2,127 | |||||||
5,198 | |||||||||
Electrical Equipment (1.4%) | |||||||||
Hubbell Inc., Class B | 30,203 | 1,786 | |||||||
Electronic Equipment, Instruments & Components (3.2%) | |||||||||
CTS Corp. | 114,855 | 1,102 | |||||||
Itron, Inc.* | 38,620 | 1,538 | |||||||
LeCroy Corp.* | 69,700 | 631 | |||||||
Mercury Computer Systems* | 65,560 | 912 | |||||||
4,183 | |||||||||
Energy Equipment & Services (5.4%) | |||||||||
Dresser-Rand Group* | 46,120 | 1,958 | |||||||
Global Industries* | 307,403 | 1,355 | |||||||
ION Geophysical* | 206,517 | 1,460 | |||||||
TETRA Technologies* | 209,643 | 2,149 | |||||||
6,922 | |||||||||
Health Care Equipment & Supplies (0.6%) | |||||||||
Symmetry Medical* | 87,700 | 731 | |||||||
Health Care Providers & Services (0.9%) | |||||||||
Chemed Corp. | 20,425 | 1,186 | |||||||
Hotels, Restaurants & Leisure (2.8%) | |||||||||
Scientific Games* | 231,814 | 2,045 | |||||||
Wendy's Co. | 308,900 | 1,504 | |||||||
3,549 | |||||||||
Independent Power Producers & Energy Traders (2.4%) | |||||||||
GenOn Energy* | 507,100 | 1,541 | |||||||
Ormat Technologies | 87,956 | 1,492 | |||||||
3,033 | |||||||||
Internet Software & Services (2.0%) | |||||||||
Digital River* | 72,563 | 1,460 | |||||||
Keynote Systems | 44,496 | 1,069 | |||||||
2,529 |
IT Services (7.9%) | |||||||||
Acxiom Corp.* | 146,600 | $1,608 | |||||||
Convergys Corp.* | 94,800 | 1,010 | |||||||
CoreLogic, Inc.* | 234,211 | 2,675 | |||||||
DST Systems | 55,719 | 2,614 | |||||||
Lender Processing Services | 129,000 | 2,275 | |||||||
10,182 | |||||||||
Life Science Tools & Services (3.4%) | |||||||||
Affymetrix, Inc.* | 212,700 | 1,191 | |||||||
Cambrex Corp.* | 304,438 | 1,513 | |||||||
Charles River Laboratories International* | 52,471 | 1,738 | |||||||
4,442 | |||||||||
Machinery (6.3%) | |||||||||
ESCO Technologies | 55,185 | 1,704 | |||||||
Manitowoc Co. | 111,500 | 1,239 | |||||||
Navistar International* | 47,085 | 1,949 | |||||||
Pall Corp. | 48,490 | 2,479 | |||||||
Twin Disc | 18,700 | 726 | |||||||
8,097 | |||||||||
Marine (1.3%) | |||||||||
Danaos Corp.* | 261,571 | 1,017 | |||||||
Seaspan Corp. | 51,550 | 713 | |||||||
1,730 | |||||||||
Professional Services (1.3%) | |||||||||
FTI Consulting* | 45,500 | 1,655 | |||||||
Road & Rail (1.7%) | |||||||||
Ryder System | 45,704 | 2,152 | |||||||
Semiconductors & Semiconductor Equipment (5.7%) | |||||||||
Alliance Semiconductor | 86,370 | 25 | |||||||
FormFactor Inc.* | 78,400 | 619 | |||||||
Ikanos Communications* | 189,066 | 200 | |||||||
Intersil Corp. | 143,713 | 1,614 | |||||||
MEMC Electronic Materials* | 222,959 | 1,556 | |||||||
Spansion, Inc. Class A* | 45,000 | 675 | |||||||
Standard Microsystems* | 59,300 | 1,247 | |||||||
Ultratech, Inc.* | 71,494 | 1,460 | |||||||
7,396 |
See Notes to Schedule of Investments
118
Number of Shares | Value† (000's)b |
Software (4.5%) | |||||||||
Accelrys Inc.* | 173,163 | $1,126 | |||||||
Cadence Design Systems* | 207,707 | 1,919 | |||||||
Verint Systems* | 94,405 | 2,698 | |||||||
5,743 | |||||||||
Specialty Retail (6.9%) | |||||||||
Advance Auto Parts | 42,996 | 2,611 | |||||||
Chico's FAS | 100,000 | 1,392 | |||||||
OfficeMax Inc.* | 272,265 | 1,707 | |||||||
PEP Boys-Manny, Moe & Jack | 82,701 | 817 | |||||||
RadioShack Corp. | 144,500 | 1,880 | |||||||
Talbots, Inc.* | 160,200 | 471 | |||||||
8,878 | |||||||||
Textiles, Apparel & Luxury Goods (0.8%) | |||||||||
Carter's, Inc.* | 35,000 | 1,082 | |||||||
Thrifts & Mortgage Finance (1.2%) | |||||||||
First Niagara Financial Group | 146,300 | 1,575 | |||||||
Total Common Stocks (Cost $128,646) | 122,363 | ||||||||
Rights (0.0%) | |||||||||
Biotechnology (0.0%) | |||||||||
Pharmacopeia Drug Discovery CVR*^^ (Cost $0) | 136,250 | 0 | |||||||
Short-Term Investments (4.0%) | |||||||||
State Street Institutional Treasury Money Market Fund Institutional Class (Cost $5,170) | 5,170,346 | 5,170 | |||||||
Total Investments## (99.0%) (Cost $133,816) | 127,533 | ||||||||
Cash, receivables and other assets, less liabilities (1.0%) | 1,315 | ||||||||
Total Net Assets (100.0%) | $128,848 |
See Notes to Schedule of Investments
119
Schedule of Investments Large Cap Disciplined Growth Fund
TOP TEN EQUITY HOLDINGS |
1 | Apple Inc. | 7.9 | % | ||||||
2 | Coca-Cola | 3.8 | % | ||||||
3 | Google Inc. Class A | 3.6 | % | ||||||
4 | Amazon.com | 3.0 | % | ||||||
5 | Oracle Corp. | 2.9 | % | ||||||
6 | Procter & Gamble | 2.9 | % | ||||||
7 | Johnson & Johnson | 2.6 | % | ||||||
8 | Microsoft Corp. | 2.5 | % | ||||||
9 | Precision Castparts | 2.3 | % | ||||||
10 | Las Vegas Sands | 2.1 | % |
Number of Shares | Value† (000's)b |
Common Stocks (96.3%) | |||||||||
Aerospace & Defense (5.6%) | |||||||||
Boeing Co. | 147,030 | $9,830 | |||||||
Precision Castparts | 91,485 | 14,990 | |||||||
Raytheon Co. | 138,416 | 5,984 | |||||||
United Technologies | 81,980 | 6,087 | |||||||
36,891 | |||||||||
Auto Components (0.5%) | |||||||||
BorgWarner, Inc.* | 49,505 | 3,534 | |||||||
Beverages (5.5%) | |||||||||
Coca-Cola | 358,515 | 25,257 | |||||||
PepsiCo, Inc. | 169,604 | 10,928 | |||||||
36,185 | |||||||||
Biotechnology (0.5%) | |||||||||
Gilead Sciences* | 83,663 | 3,337 | |||||||
Chemicals (2.7%) | |||||||||
Monsanto Co. | 172,970 | 11,923 | |||||||
Sigma-Aldrich | 94,455 | 6,082 | |||||||
18,005 | |||||||||
Commercial Banks (0.8%) | |||||||||
Comerica Inc. | 201,584 | 5,159 | |||||||
Commercial Services & Supplies (1.6%) | |||||||||
Republic Services | 235,940 | 7,163 | |||||||
Stericycle, Inc.* | 39,703 | 3,482 | |||||||
10,645 | |||||||||
Communications Equipment (1.8%) | |||||||||
Juniper Networks* | 254,554 | 5,328 | |||||||
QUALCOMM Inc. | 126,337 | 6,501 | |||||||
11,829 | |||||||||
Computers & Peripherals (9.0%) | |||||||||
Apple Inc.* | 134,950 | 51,933 | |||||||
EMC Corp.* | 330,297 | 7,461 | |||||||
59,394 | |||||||||
Diversified Financial Services (0.9%) | |||||||||
CME Group | 21,089 | 5,633 | |||||||
Electric Utilities (1.0%) | |||||||||
American Electric Power | 177,723 | 6,865 | |||||||
Energy Equipment & Services (3.9%) | |||||||||
Baker Hughes | 91,089 | 5,566 | |||||||
National Oilwell Varco | 133,663 | 8,838 | |||||||
Schlumberger Ltd. | 140,000 | 10,937 | |||||||
25,341 |
Food & Staples Retailing (3.0%) | |||||||||
Kroger Co. | 419,109 | $9,874 | |||||||
Wal-Mart Stores | 189,010 | 10,057 | |||||||
19,931 | |||||||||
Food Products (2.8%) | |||||||||
Mead Johnson Nutrition | 151,485 | 10,793 | |||||||
Tyson Foods Class A | 453,960 | 7,931 | |||||||
18,724 | |||||||||
Health Care Equipment & Supplies (1.1%) | |||||||||
Covidien PLC | 143,663 | 7,496 | |||||||
Health Care Providers & Services (3.1%) | |||||||||
Express Scripts* | 157,426 | 7,390 | |||||||
UnitedHealth Group | 277,129 | 13,169 | |||||||
20,559 | |||||||||
Hotels, Restaurants & Leisure (8.6%) | |||||||||
Las Vegas Sands* | 292,574 | �� | 13,625 | ||||||
McDonald's Corp. | 127,525 | 11,536 | |||||||
Starbucks Corp. | 261,188 | 10,087 | |||||||
Starwood Hotels & Resorts Worldwide | 241,584 | 10,765 | |||||||
Yum! Brands | 195,049 | 10,605 | |||||||
56,618 | |||||||||
Household Products (2.9%) | |||||||||
Procter & Gamble | 296,435 | 18,877 | |||||||
Industrial Conglomerates (2.7%) | |||||||||
3M Co. | 68,614 | 5,694 | |||||||
Danaher Corp. | 127,426 | 5,837 | |||||||
Tyco International | 152,475 | 6,340 | |||||||
17,871 | |||||||||
Industrial Gases (0.2%) | |||||||||
Praxair, Inc. | 13,800 | 1,359 | |||||||
Internet & Catalog Retail (4.7%) | |||||||||
Amazon.com* | 90,297 | 19,440 | |||||||
Netflix Inc.* | 48,911 | 11,495 | |||||||
30,935 | |||||||||
Internet Software & Services (4.5%) | |||||||||
Google Inc. Class A* | 44,356 | 23,995 | |||||||
SINA Corp.* | 51,287 | 5,509 | |||||||
29,504 |
Life Science Tools & Services (3.8%) | |||||||||
Illumina, Inc.* | 261,089 | $13,603 | |||||||
Waters Corp.* | 145,941 | 11,656 | |||||||
25,259 | |||||||||
Media (1.0%) | |||||||||
Time Warner | 199,703 | 6,323 | |||||||
Metals & Mining (2.8%) | |||||||||
Allegheny Technologies | 138,515 | 6,942 | |||||||
Freeport-McMoRan Copper & Gold | 239,109 | 11,272 | |||||||
18,214 | |||||||||
Multiline Retail (0.5%) | |||||||||
Kohl's Corp. | 66,436 | 3,079 | |||||||
Oil, Gas & Consumable Fuels (4.4%) | |||||||||
BG Group PLC ADR | 57,129 | 6,218 | |||||||
Canadian Natural Resources | 227,129 | 8,556 | |||||||
EOG Resources | 91,683 | 8,489 | |||||||
Range Resources | 87,624 | 5,674 | |||||||
28,937 | |||||||||
Personal Products (1.2%) | |||||||||
Estee Lauder | 79,703 | 7,784 | |||||||
Pharmaceuticals (4.0%) | |||||||||
Allergan, Inc. | 105,544 | 8,635 | |||||||
Johnson & Johnson | 264,455 | 17,401 | |||||||
26,036 | |||||||||
Semiconductors & Semiconductor Equipment (1.4%) | |||||||||
Intel Corp. | 441,782 | 8,893 | |||||||
Software (7.1%) | |||||||||
Citrix Systems* | 182,079 | 11,003 | |||||||
Microsoft Corp. | 631,386 | 16,795 | |||||||
Oracle Corp. | 683,960 | 19,199 | |||||||
46,997 | |||||||||
Textiles, Apparel & Luxury Goods (2.7%) | |||||||||
Coach, Inc. | 121,485 | 6,830 | |||||||
V.F. Corp. | 91,188 | 10,674 | |||||||
17,504 | |||||||||
Total Common Stocks (Cost $595,625) | 633,718 |
See Notes to Schedule of Investments
120
Number of Shares | Value† (000's)b |
Short-Term Investments (4.0%) | |||||||||
State Street Institutional Liquid Reserves Fund Institutional Class (Cost $26,337) | 26,337,211 | $26,337 | |||||||
Total Investments## (100.3%) (Cost $621,962) | 660,055 | ||||||||
Liabilities, less cash, receivables and other assets [(0.3%)] | (1,669 | ) | |||||||
Total Net Assets (100.0%) | $658,386 |
See Notes to Schedule of Investments
121
Schedule of Investments Large Cap Value Fund
TOP TEN EQUITY HOLDINGS |
1 | J.P. Morgan Chase | 3.4 | % | ||||||
2 | Pfizer Inc. | 3.0 | % | ||||||
3 | Goldman Sachs Group | 2.9 | % | ||||||
4 | General Electric | 2.8 | % | ||||||
5 | Wells Fargo | 2.7 | % | ||||||
6 | AT&T Inc. | 2.6 | % | ||||||
7 | Johnson & Johnson | 2.5 | % | ||||||
8 | Chevron Corp. | 2.4 | % | ||||||
9 | Exxon Mobil | 2.3 | % | ||||||
10 | Kroger Co. | 2.0 | % |
Number of Shares | Value† (000's)b |
Common Stocks (91.5%) | |||||||||
Aerospace & Defense (1.6%) | |||||||||
Boeing Co. | 352 | $23 | |||||||
Lockheed Martin | 323 | 24 | |||||||
47 | |||||||||
Airlines (1.0%) | |||||||||
Delta Air Lines* | 3,927 | 29 | |||||||
Beverages (0.7%) | |||||||||
Dr. Pepper Snapple Group | 567 | 22 | |||||||
Biotechnology (1.3%) | |||||||||
Amgen Inc. | 700 | 39 | |||||||
Capital Markets (5.5%) | |||||||||
BlackRock, Inc. | 111 | 18 | |||||||
Goldman Sachs Group | 768 | 89 | |||||||
Morgan Stanley | 1,832 | 32 | |||||||
State Street | 778 | 28 | |||||||
167 | |||||||||
Chemicals (2.6%) | |||||||||
CF Industries Holdings | 92 | 17 | |||||||
Monsanto Co. | 518 | 36 | |||||||
Potash Corp. of Saskatchewan | 455 | 26 | |||||||
79 | |||||||||
Commercial Banks (5.6%) | |||||||||
KeyCorp | 1,825 | 12 | |||||||
PNC Financial Services Group | 314 | 16 | |||||||
U.S. Bancorp | 1,855 | 43 | |||||||
Wells Fargo | 3,106 | 81 | |||||||
Zions Bancorp | 1,071 | 19 | |||||||
171 | |||||||||
Computers & Peripherals (1.7%) | |||||||||
Dell Inc.* | 3,500 | 52 | |||||||
Consumer Finance (0.8%) | |||||||||
American Express | 467 | 23 | |||||||
Diversified Financial Services (6.6%) | |||||||||
Bank of America | 4,709 | 38 | |||||||
Citigroup Inc. | 1,893 | 59 | |||||||
J.P. Morgan Chase | 2,764 | 104 | |||||||
201 |
Diversified Telecommunication Services (4.6%) | |||||||||
AT&T Inc. | 2,807 | $80 | |||||||
Verizon Communications | 1,658 | 60 | |||||||
140 | |||||||||
Electric Utilities (5.2%) | |||||||||
Duke Energy | 1,353 | 25 | |||||||
Exelon Corp. | 687 | 30 | |||||||
NextEra Energy | 931 | 53 | |||||||
Southern Co. | 1,215 | 50 | |||||||
158 | |||||||||
Energy Equipment & Services (0.4%) | |||||||||
National Oilwell Varco | 175 | 11 | |||||||
Food & Staples Retailing (3.9%) | |||||||||
Kroger Co. | 2,568 | 61 | |||||||
Wal-Mart Stores | 1,075 | 57 | |||||||
118 | |||||||||
Health Care Equipment & Supplies (0.9%) | |||||||||
Zimmer Holdings* | 492 | 28 | |||||||
Health Care Providers & Services (0.8%) | |||||||||
Aetna Inc. | 578 | 23 | |||||||
Hotels, Restaurants & Leisure (3.1%) | |||||||||
Carnival Corp. | 1,119 | 37 | |||||||
Darden Restaurants | 594 | 28 | |||||||
Las Vegas Sands* | 597 | 28 | |||||||
93 | |||||||||
Household Products (3.9%) | |||||||||
Colgate-Palmolive | 275 | 25 | |||||||
Kimberly-Clark | 518 | 36 | |||||||
Procter & Gamble | 900 | 57 | |||||||
118 | |||||||||
Industrial Conglomerates (4.8%) | |||||||||
3M Co. | 696 | 58 | |||||||
General Electric | 5,291 | 86 | |||||||
144 | |||||||||
Insurance (3.9%) | |||||||||
Berkshire Hathaway Class B* | 380 | 28 | |||||||
MetLife, Inc. | 1,007 | 34 | |||||||
Prudential Financial | 308 | 15 | |||||||
Reinsurance Group of America | 505 | 27 | |||||||
Travelers Cos. | 301 | 15 | |||||||
119 |
IT Services (0.6%) | |||||||||
IBM | 97 | $17 | |||||||
Machinery (1.0%) | |||||||||
Ingersoll-Rand PLC | 933 | 31 | |||||||
Media (1.7%) | |||||||||
Comcast Corp. Class A Special | 700 | 15 | |||||||
Time Warner | 1,131 | 36 | |||||||
51 | |||||||||
Metals & Mining (2.2%) | |||||||||
Freeport-McMoRan Copper & Gold | 719 | 34 | |||||||
Newmont Mining | 524 | 33 | |||||||
67 | |||||||||
Multi-Utilities (2.0%) | |||||||||
Public Service Enterprise Group | 969 | 33 | |||||||
Sempra Energy | 507 | 27 | |||||||
60 | |||||||||
Multiline Retail (1.1%) | |||||||||
Kohl's Corp. | 749 | 35 | |||||||
Oil, Gas & Consumable Fuels (9.5%) | |||||||||
Apache Corp. | 293 | 30 | |||||||
Cabot Oil & Gas | 297 | 23 | |||||||
Chevron Corp. | 742 | 73 | |||||||
CONSOL Energy | 339 | 15 | |||||||
Exxon Mobil | 926 | 69 | |||||||
Occidental Petroleum | 287 | 25 | |||||||
Range Resources | 831 | 54 | |||||||
289 | |||||||||
Pharmaceuticals (7.1%) | |||||||||
Bristol-Myers Squibb | 700 | 21 | |||||||
Eli Lilly | 653 | 25 | |||||||
Johnson & Johnson | 1,175 | 77 | |||||||
Pfizer Inc. | 4,856 | 92 | |||||||
215 | |||||||||
Road & Rail (1.0%) | |||||||||
Norfolk Southern | 435 | 29 | |||||||
Semiconductors & Semiconductor Equipment (1.3%) | |||||||||
Intel Corp. | 1,884 | 38 |
See Notes to Schedule of Investments
122
Number of Shares | Value† (000's)b |
Software (4.1%) | |||||||||
Activision Blizzard | 2,600 | $31 | |||||||
Microsoft Corp. | 1,698 | 45 | |||||||
Symantec Corp.* | 2,794 | 48 | |||||||
124 | |||||||||
Tobacco (0.5%) | |||||||||
Philip Morris International | 230 | 16 | |||||||
Wireless Telecommunication Services (0.5%) | |||||||||
American Tower Class A* | 272 | 15 | |||||||
Total Common Stocks (Cost $2,732) | 2,769 | ||||||||
Short-Term Investments (5.8%) | |||||||||
State Street Institutional Treasury Money Market Fund Institutional Class (Cost $174) | 174,078 | 174 | |||||||
Total Investments## (97.3%) (Cost $2,906) | 2,943 | ||||||||
Cash, receivables and other assets, less liabilities (2.7%) | 83 | ||||||||
Total Net Assets (100.0%) | $3,026 |
See Notes to Schedule of Investments
123
Schedule of Investments Mid Cap Growth Fund
TOP TEN EQUITY HOLDINGS |
1 | CARBO Ceramics | 2.1 | % | ||||||
2 | Stericycle, Inc. | 2.0 | % | ||||||
3 | Alexion Pharmaceuticals | 1.9 | % | ||||||
4 | Dollar Tree | 1.7 | % | ||||||
5 | Cerner Corp. | 1.6 | % | ||||||
6 | Fastenal Co. | 1.6 | % | ||||||
7 | Concho Resources | 1.5 | % | ||||||
8 | Core Laboratories | 1.4 | % | ||||||
9 | Rovi Corp. | 1.4 | % | ||||||
10 | SBA Communications Class A | 1.4 | % |
Number of Shares | Value† (000's)b |
Common Stocks (96.3%) | |||||||||
Aerospace & Defense (2.8%) | |||||||||
BE Aerospace* | 109,200 | $3,803 | |||||||
HEICO Corp. | 78,000 | 4,253 | |||||||
Precision Castparts | 37,400 | 6,128 | |||||||
14,184 | |||||||||
Air Freight & Logistics (1.0%) | |||||||||
C.H. Robinson Worldwide | 73,500 | 5,182 | |||||||
Auto Components (1.9%) | |||||||||
BorgWarner, Inc.* | 66,900 | 4,776 | |||||||
Gentex Corp. | 200,000 | 5,189 | |||||||
9,965 | |||||||||
Biotechnology (1.9%) | |||||||||
Alexion Pharmaceuticals* | 170,000 | 9,851 | |||||||
Capital Markets (0.9%) | |||||||||
Affiliated Managers Group* | 55,700 | 4,855 | |||||||
Chemicals (1.8%) | |||||||||
Airgas, Inc. | 98,000 | 6,358 | |||||||
Sigma-Aldrich | 41,900 | 2,698 | |||||||
9,056 | |||||||||
Commercial Services & Supplies (2.0%) | |||||||||
Stericycle, Inc.* | 116,800 | 10,244 | |||||||
Communications Equipment (1.0%) | |||||||||
Acme Packet* | 57,900 | 2,726 | |||||||
F5 Networks* | 30,000 | 2,449 | |||||||
5,175 | |||||||||
Computers & Peripherals (0.6%) | |||||||||
NetApp, Inc.* | 87,400 | 3,288 | |||||||
Diversified Financial Services (2.1%) | |||||||||
IntercontinentalExchange Inc.* | 46,800 | 5,520 | |||||||
MSCI Inc. Class A* | 144,900 | 5,009 | |||||||
10,529 | |||||||||
Electrical Equipment (4.5%) | |||||||||
AMETEK, Inc. | 147,500 | 5,764 | |||||||
Polypore International* | 85,000 | 5,242 | |||||||
Roper Industries | 71,300 | 5,486 | |||||||
Sensata Technologies Holding* | 199,000 | 6,456 | |||||||
22,948 |
Electronic Equipment, Instruments & Components (3.6%) | |||||||||
Amphenol Corp. Class A | 75,600 | $3,552 | |||||||
National Instruments | 191,700 | 4,875 | |||||||
Trimble Navigation* | 173,900 | 6,458 | |||||||
Universal Display* | 71,300 | 3,499 | |||||||
18,384 | |||||||||
Energy Equipment & Services (5.7%) | |||||||||
CARBO Ceramics | 66,900 | 10,714 | |||||||
Complete Production Services* | 160,500 | 4,664 | |||||||
Core Laboratories | 66,500 | 7,420 | |||||||
Oil States International* | 97,500 | 6,443 | |||||||
29,241 | |||||||||
Food & Staples Retailing (0.8%) | |||||||||
Whole Foods Market | 60,200 | 3,975 | |||||||
Food Products (1.4%) | |||||||||
Mead Johnson Nutrition | 99,000 | 7,054 | |||||||
Health Care Equipment & Supplies (4.1%) | |||||||||
Edwards Lifesciences* | 75,800 | 5,719 | |||||||
Intuitive Surgical* | 11,600 | 4,424 | |||||||
Masimo Corp. | 100,000 | 2,467 | |||||||
NxStage Medical* | 200,000 | 3,678 | |||||||
Volcano Corp.* | 160,500 | 4,807 | |||||||
21,095 | |||||||||
Health Care Providers & Services (2.4%) | |||||||||
Catalyst Health Solutions* | 102,500 | 5,506 | |||||||
HMS Holdings* | 252,900 | 6,634 | |||||||
12,140 | |||||||||
Health Care Technology (2.4%) | |||||||||
Cerner Corp.* | 122,200 | 8,060 | |||||||
Quality Systems | 44,600 | 4,104 | |||||||
12,164 | |||||||||
Hotels, Restaurants & Leisure (2.0%) | |||||||||
Arcos Dorados Holdings Class A | 135,000 | 3,722 | |||||||
Chipotle Mexican Grill* | 12,500 | 3,917 |
Starwood Hotels & Resorts Worldwide | 57,500 | $2,562 | |||||||
10,201 | |||||||||
Household Products (1.0%) | |||||||||
Church & Dwight | 122,100 | 5,316 | |||||||
Industrial Conglomerates (1.0%) | |||||||||
Danaher Corp. | 115,900 | 5,309 | |||||||
Internet Software & Services (0.9%) | |||||||||
Rackspace Hosting* | 132,500 | 4,844 | |||||||
IT Services (2.5%) | |||||||||
Cognizant Technology Solutions Class A* | 93,000 | 5,901 | |||||||
VeriFone Systems* | 200,000 | 7,044 | |||||||
12,945 | |||||||||
Life Science Tools & Services (1.3%) | |||||||||
Illumina, Inc.* | 50,000 | 2,605 | |||||||
Waters Corp.* | 49,000 | 3,914 | |||||||
6,519 | |||||||||
Machinery (2.8%) | |||||||||
Cummins Inc. | 47,500 | 4,414 | |||||||
Donaldson Co. | 93,600 | 5,520 | |||||||
Pall Corp. | 81,600 | 4,172 | |||||||
14,106 | |||||||||
Media (2.5%) | |||||||||
Discovery Communications Class A* | 102,100 | 4,317 | |||||||
Focus Media Holding ADR* | 135,000 | 4,233 | |||||||
Scripps Networks Interactive Class A | 93,600 | 4,011 | |||||||
12,561 | |||||||||
Metals & Mining (0.5%) | |||||||||
Cliffs Natural Resources | 29,000 | 2,403 | |||||||
Multiline Retail (2.8%) | |||||||||
Dollar Tree* | 124,800 | 8,913 | |||||||
Nordstrom, Inc. | 115,900 | 5,269 | |||||||
14,182 | |||||||||
Oil, Gas & Consumable Fuels (3.9%) | |||||||||
Cabot Oil & Gas | 78,000 | 5,917 | |||||||
Concho Resources* | 89,200 | 7,756 | |||||||
Denbury Resources* | 205,100 | 3,272 |
See Notes to Schedule of Investments
124
Number of Shares | Value† (000's)b |
SM Energy | 42,500 | $3,251 | |||||||
20,196 | |||||||||
Pharmaceuticals (3.8%) | |||||||||
Medicis Pharmaceutical Class A | 89,200 | 3,470 | |||||||
Perrigo Co. | 71,300 | 6,755 | |||||||
Salix Pharmaceuticals* | 89,200 | 2,716 | |||||||
Watson Pharmaceuticals* | 100,300 | 6,732 | |||||||
19,673 | |||||||||
Professional Services (1.0%) | |||||||||
Verisk Analytics Class A* | 151,600 | 5,282 | |||||||
Real Estate Management & Development (0.9%) | |||||||||
Jones Lang LaSalle | 71,300 | 4,771 | |||||||
Road & Rail (1.0%) | |||||||||
J.B. Hunt Transport Services | 129,300 | 5,196 | |||||||
Semiconductors & Semiconductor Equipment (3.2%) | |||||||||
Avago Technologies | 217,000 | 7,185 | |||||||
Cavium Inc.* | 125,000 | 4,024 | |||||||
Microchip Technology | 151,100 | 4,959 | |||||||
16,168 | |||||||||
Software (11.1%) | |||||||||
ANSYS, Inc.* | 117,200 | 6,326 | |||||||
Ariba, Inc.* | 89,200 | 2,420 | |||||||
BMC Software* | 80,000 | 3,249 | |||||||
Check Point Software Technologies* | 93,500 | 5,090 | |||||||
Citrix Systems* | 80,200 | 4,847 | |||||||
Informatica Corp.* | 169,400 | 7,078 | |||||||
MICROS Systems* | 92,700 | 4,418 | |||||||
QLIK Technologies* | 165,000 | 4,188 | |||||||
Red Hat* | 58,000 | 2,293 | |||||||
Rovi Corp.* | 151,600 | 7,412 | |||||||
Salesforce.com, Inc.* | 35,700 | 4,596 | |||||||
Solera Holdings | 80,500 | 4,721 | |||||||
56,638 | |||||||||
Specialty Retail (5.4%) | |||||||||
Bed Bath & Beyond* | 106,100 | 6,033 | |||||||
Dick's Sporting Goods* | 138,200 | 4,855 | |||||||
O'Reilly Automotive* | 89,200 | 5,787 | |||||||
Ross Stores | 93,600 | 7,163 | |||||||
Tractor Supply | 65,000 | 3,989 | |||||||
27,827 |
Textiles, Apparel & Luxury Goods (1.9%) | |||||||||
Coach, Inc. | 90,000 | $5,060 | |||||||
PVH Corp. | 73,600 | 4,906 | |||||||
9,966 | |||||||||
Trading Companies & Distributors (2.4%) | |||||||||
Fastenal Co. | 240,700 | 8,059 | |||||||
MSC Industrial Direct Class A | 71,300 | 4,397 | |||||||
12,456 | |||||||||
Wireless Telecommunication Services (3.5%) | |||||||||
American Tower Class A* | 84,800 | 4,567 | |||||||
NII Holdings | 151,600 | 5,841 | |||||||
SBA Communications Class A* | 193,000 | 7,294 | |||||||
17,702 | |||||||||
Total Common Stocks (Cost $349,890) | 493,591 | ||||||||
Short-Term Investments (1.3%) | |||||||||
State Street Institutional Liquid Reserves Fund Institutional Class (Cost $6,583) | 6,582,896 | 6,583 | |||||||
Total Investments## (97.6%) (Cost $356,473) | 500,174 | ||||||||
Cash, receivables and other assets, less liabilities (2.4%) | 12,481 | ||||||||
Total Net Assets (100.0%) | $512,655 |
See Notes to Schedule of Investments
125
Schedule of Investments Multi-Cap Opportunities Fund
TOP TEN EQUITY HOLDINGS |
1 | Boeing Co. | 3.6 | % | ||||||
2 | Xerox Corp. | 3.5 | % | ||||||
3 | 3M Co. | 3.4 | % | ||||||
4 | Thermo Fisher Scientific | 3.4 | % | ||||||
5 | ConAgra Foods | 3.4 | % | ||||||
6 | Activision Blizzard | 3.4 | % | ||||||
7 | Pfizer Inc. | 3.4 | % | ||||||
8 | Carter's, Inc. | 3.4 | % | ||||||
9 | Mattel Inc. | 3.4 | % | ||||||
10 | J.P. Morgan Chase | 3.3 | % |
Number of Shares | Value† (000's)b |
Common Stocks (96.9%) | |||||||||
Aerospace & Defense (3.6%) | |||||||||
Boeing Co. | 49,000 | $3,276 | |||||||
Beverages (1.5%) | |||||||||
PepsiCo, Inc. | 22,000 | 1,417 | |||||||
Capital Markets (3.0%) | |||||||||
Goldman Sachs Group | 24,000 | 2,789 | |||||||
Chemicals (2.1%) | |||||||||
Ecolab Inc. | 35,000 | 1,876 | |||||||
Commercial Services & Supplies (2.9%) | |||||||||
Covanta Holding | 159,000 | 2,611 | |||||||
Communications Equipment (1.3%) | |||||||||
MRV Communications* | 900,000 | 1,179 | |||||||
Containers & Packaging (2.4%) | |||||||||
Sealed Air | 119,500 | 2,201 | |||||||
Diversified Financial Services (3.3%) | |||||||||
J.P. Morgan Chase | 80,000 | 3,005 | |||||||
Electrical Equipment (4.6%) | |||||||||
ABB Ltd. ADR* | 126,000 | 2,680 | |||||||
Rockwell Automation | 24,200 | 1,552 | |||||||
4,232 | |||||||||
Energy Equipment & Services (5.0%) | |||||||||
McDermott International* | 165,000 | 2,374 | |||||||
Schlumberger Ltd. | 28,000 | 2,188 | |||||||
4,562 | |||||||||
Food Products (5.7%) | |||||||||
ConAgra Foods | 128,000 | 3,126 | |||||||
Kraft Foods | 60,000 | 2,101 | |||||||
5,227 | |||||||||
Gas Utilities (2.4%) | |||||||||
National Fuel Gas | 36,000 | 2,209 | |||||||
Health Care Providers & Services (5.5%) | |||||||||
HCA Holdings* | 128,000 | 2,564 | |||||||
Henry Schein* | 38,000 | 2,504 | |||||||
5,068 |
Hotels, Restaurants & Leisure (6.9%) | |||||||||
Darden Restaurants | 56,000 | $2,694 | |||||||
Great Wolf Resorts* | 500,000 | 1,420 | |||||||
McDonald's Corp. | 24,000 | 2,171 | |||||||
6,285 | |||||||||
Industrial Conglomerates (3.4%) | |||||||||
3M Co. | 38,000 | 3,153 | |||||||
Internet Software & Services (2.2%) | |||||||||
eBay Inc.* | 64,000 | 1,976 | |||||||
Leisure Equipment & Products (3.4%) | |||||||||
Mattel Inc. | 115,000 | 3,090 | |||||||
Life Science Tools & Services (3.4%) | |||||||||
Thermo Fisher Scientific* | 57,000 | 3,131 | |||||||
Media (6.1%) | |||||||||
News Corp. Class A | 170,000 | 2,936 | |||||||
Omnicom Group | 65,000 | 2,636 | |||||||
5,572 | |||||||||
Office Electronics (3.5%) | |||||||||
Xerox Corp. | 385,000 | 3,195 | |||||||
Oil, Gas & Consumable Fuels (6.1%) | |||||||||
Cenovus Energy | 73,000 | 2,634 | |||||||
Range Resources | 45,000 | 2,914 | |||||||
5,548 | |||||||||
Pharmaceuticals (3.4%) | |||||||||
Pfizer Inc. | 164,000 | 3,113 | |||||||
Professional Services (2.6%) | |||||||||
Nielsen Holdings* | 80,000 | 2,373 | |||||||
Software (6.2%) | |||||||||
Activision Blizzard | 264,000 | 3,126 | |||||||
Microsoft Corp. | 96,000 | 2,553 | |||||||
5,679 | |||||||||
Specialty Retail (3.0%) | |||||||||
Bed Bath & Beyond* | 48,000 | 2,729 | |||||||
Textiles, Apparel & Luxury Goods (3.4%) | |||||||||
Carter's, Inc.* | 100,000 | 3,093 | |||||||
Total Common Stocks (Cost $86,981) | 88,589 | ||||||||
Short-Term Investments (3.4%) | |||||||||
State Street Institutional Liquid Reserves Fund Institutional Class (Cost $3,110) | 3,109,532 | $3,110 | |||||||
Total Investments## (100.3%) (Cost $90,091) | 91,699 | ||||||||
Liabilities, less cash, receivables and other assets [(0.3%)] | (234 | ) | |||||||
Total Net Assets (100.0%) | $91,465 |
See Notes to Schedule of Investments
126
Schedule of Investments Partners Fund
TOP TEN EQUITY HOLDINGS |
1 | Shire PLC ADR | 2.7 | % | ||||||
2 | Wells Fargo | 2.6 | % | ||||||
3 | Moody's Corp. | 2.5 | % | ||||||
4 | J.P. Morgan Chase | 2.4 | % | ||||||
5 | Berkshire Hathaway Class B | 2.4 | % | ||||||
6 | Boeing Co. | 2.3 | % | ||||||
7 | Covidien PLC | 1.9 | % | ||||||
8 | National Oilwell Varco | 1.8 | % | ||||||
9 | Bank of America | 1.8 | % | ||||||
10 | Cenovus Energy | 1.8 | % |
Number of Shares | Value† (000's)b |
Common Stocks (97.4%) | |||||||||
Aerospace & Defense (3.3%) | |||||||||
Boeing Co. | 712,000 | $47,604 | |||||||
Textron Inc. | 1,288,500 | 21,737 | |||||||
69,341 | |||||||||
Air Freight & Logistics (1.0%) | |||||||||
FedEx Corp. | 268,311 | 21,121 | |||||||
Auto Components (1.7%) | |||||||||
Lear Corp. | 746,530 | 35,669 | |||||||
Automobiles (0.4%) | |||||||||
General Motors* | 387,330 | 9,308 | |||||||
Beverages (1.3%) | |||||||||
Coca-Cola | 403,400 | 28,419 | |||||||
Biotechnology (0.9%) | |||||||||
Amgen Inc. | 349,600 | 19,370 | |||||||
Building Products (1.7%) | |||||||||
Owens Corning* | 1,211,630 | 35,210 | |||||||
Capital Markets (4.0%) | |||||||||
Goldman Sachs Group | 251,100 | 29,183 | |||||||
Invesco Ltd. | 1,784,600 | 32,658 | |||||||
State Street | 653,400 | 23,209 | |||||||
85,050 | |||||||||
Commercial Banks (4.9%) | |||||||||
Fifth Third Bancorp | 2,591,100 | 27,518 | |||||||
SunTrust Banks | 1,079,900 | 21,490 | |||||||
Wells Fargo | 2,067,100 | 53,951 | |||||||
102,959 | |||||||||
Computers & Peripherals (1.2%) | |||||||||
Hewlett-Packard | 968,920 | 25,221 | |||||||
Construction & Engineering (0.7%) | |||||||||
Chicago Bridge & Iron | 415,293 | 14,847 | |||||||
Consumer Finance (2.3%) | |||||||||
American Express | 743,600 | 36,964 | |||||||
Capital One Financial | 257,200 | 11,844 | |||||||
48,808 | |||||||||
Diversified Financial Services (7.9%) | |||||||||
Bank of America | 4,586,900 | 37,475 | |||||||
Citigroup Inc. | 849,323 | 26,372 |
J.P. Morgan Chase | 1,361,800 | $51,149 | |||||||
Moody's Corp. | 1,692,374 | 52,176 | |||||||
167,172 | |||||||||
Diversified Telecommunication Services (2.6%) | |||||||||
Koninklijke KPN NV ADR | 1,448,400 | 20,451 | |||||||
Telefonica SA ADR | 1,689,770 | 35,232 | |||||||
55,683 | |||||||||
Electric Utilities (0.7%) | |||||||||
NV Energy | 1,005,574 | 15,003 | |||||||
Electrical Equipment (1.5%) | |||||||||
ABB Ltd. ADR* | 1,443,600 | 30,705 | |||||||
Electronic Equipment, Instruments & Components (1.4%) | |||||||||
Avnet, Inc.* | 1,125,457 | 29,532 | |||||||
Energy Equipment & Services (5.2%) | |||||||||
Halliburton Co. | 774,509 | 34,365 | |||||||
McDermott International* | 1,088,890 | 15,669 | |||||||
National Oilwell Varco | 568,448 | 37,586 | |||||||
Weatherford International* | 1,258,800 | 21,563 | |||||||
109,183 | |||||||||
Food & Staples Retailing (1.3%) | |||||||||
CVS Caremark | 746,000 | 26,789 | |||||||
Health Care Equipment & Supplies (3.6%) | |||||||||
Covidien PLC | 756,700 | 39,485 | |||||||
Zimmer Holdings* | 637,500 | 36,267 | |||||||
75,752 | |||||||||
Health Care Providers & Services (4.9%) | |||||||||
Aetna Inc. | 806,300 | 32,276 | |||||||
Medco Health Solutions* | 683,800 | 37,021 | |||||||
WellPoint Inc. | 552,200 | 34,954 | |||||||
104,251 | |||||||||
Household Durables (1.7%) | |||||||||
NVR, Inc.* | 32,776 | 20,862 | |||||||
Whirlpool Corp. | 228,341 | 14,315 | |||||||
35,177 |
Household Products (1.2%) | |||||||||
Energizer Holdings* | 329,800 | $24,893 | |||||||
Insurance (3.5%) | |||||||||
Berkshire Hathaway Class B* | 697,500 | 50,918 | |||||||
MetLife, Inc. | 656,442 | 22,056 | |||||||
72,974 | |||||||||
IT Services (2.9%) | |||||||||
Lender Processing Services | 1,771,807 | 31,255 | |||||||
Visa Inc. Class A | 328,800 | 28,895 | |||||||
60,150 | |||||||||
Machinery (3.4%) | |||||||||
Deere & Co. | 270,100 | 21,830 | |||||||
Eaton Corp. | 464,500 | 19,950 | |||||||
Joy Global | 182,675 | 15,244 | |||||||
Terex Corp.* | 894,477 | 14,428 | |||||||
71,452 | |||||||||
Media (2.3%) | |||||||||
Cablevision Systems Class A | 820,800 | 14,824 | |||||||
McGraw-Hill Cos. | 784,500 | 33,035 | |||||||
47,859 | |||||||||
Metals & Mining (3.7%) | |||||||||
Cliffs Natural Resources | 247,500 | 20,506 | |||||||
Freeport-McMoRan Copper & Gold | 291,300 | 13,732 | |||||||
Teck Resources Class B | 449,200 | 19,913 | |||||||
Walter Energy | 50,000 | 4,087 | |||||||
Xstrata PLC | 1,184,000 | 20,738 | |||||||
78,976 | |||||||||
Multi-Utilities (2.7%) | |||||||||
CenterPoint Energy | 1,269,691 | 25,406 | |||||||
National Grid ADR | 288,231 | 14,619 | |||||||
PG&E Corp. | 396,000 | 16,771 | |||||||
56,796 | |||||||||
Multiline Retail (2.4%) | |||||||||
J.C. Penney | 843,547 | 22,464 | |||||||
Macy's, Inc. | 1,114,900 | 28,931 | |||||||
51,395 |
See Notes to Schedule of Investments
127
Number of Shares | Value† (000's)b |
Oil, Gas & Consumable Fuels (10.3%) | |||||||||
Anadarko Petroleum | 296,800 | $21,889 | |||||||
Apache Corp. | 271,354 | 27,968 | |||||||
Canadian Natural Resources | 923,285 | 34,780 | |||||||
Cenovus Energy | 1,036,757 | 37,406 | |||||||
El Paso Corp. | 997,966 | 19,101 | |||||||
EOG Resources | 400,200 | 37,055 | |||||||
Occidental Petroleum | 280,200 | 24,305 | |||||||
Southwestern Energy* | 368,205 | 13,973 | |||||||
216,477 | |||||||||
Personal Products (1.2%) | |||||||||
Avon Products | 1,076,947 | 24,296 | |||||||
Pharmaceuticals (3.7%) | |||||||||
Pfizer Inc. | 1,044,025 | 19,815 | |||||||
Shire PLC ADR | 593,498 | 57,629 | |||||||
77,444 | |||||||||
Semiconductors & Semiconductor Equipment (2.1%) | |||||||||
Intel Corp. | 794,300 | 15,989 | |||||||
Lam Research* | 245,900 | 9,138 | |||||||
NXP Semiconductors* | 1,147,457 | 18,692 | |||||||
43,819 | |||||||||
Software (1.5%) | |||||||||
Check Point Software Technologies* | 306,273 | 16,674 | |||||||
Oracle Corp. | 531,400 | 14,916 | |||||||
31,590 | |||||||||
Specialty Retail (2.3%) | |||||||||
Best Buy | 946,128 | 24,211 | |||||||
Lowe's Cos. | 1,264,700 | 25,206 | |||||||
49,417 | |||||||||
Total Common Stocks (Cost $1,776,419) | 2,052,108 | ||||||||
Short-Term Investments (2.7%) | |||||||||
State Street Institutional Liquid Reserves Fund Institutional Class (Cost $57,907) | 57,906,533 | 57,907 | |||||||
Total Investments## (100.1%) (Cost $1,834,326) | 2,110,015 | ||||||||
Liabilities, less cash, receivables and other assets [(0.1%)] | (2,606 | ) | |||||||
Total Net Assets (100.0%) | $2,107,409 |
See Notes to Schedule of Investments
128
Schedule of Investments Real Estate Fund
TOP TEN EQUITY HOLDINGS |
1 | Simon Property Group | 8.7 | % | ||||||
2 | Public Storage | 6.1 | % | ||||||
3 | Boston Properties | 5.9 | % | ||||||
4 | Equity Residential | 4.4 | % | ||||||
5 | Ventas, Inc. | 4.3 | % | ||||||
6 | ProLogis, Inc. | 3.7 | % | ||||||
7 | HCP, Inc. | 3.6 | % | ||||||
8 | AvalonBay Communities | 3.6 | % | ||||||
9 | Vornado Realty Trust | 3.0 | % | ||||||
10 | Tanger Factory Outlet Centers | 2.7 | % |
Number of Shares | Value† (000's)b |
Common Stocks (97.7%) | |||||||||
Apartments (15.7%) | |||||||||
AvalonBay Communities | 100,532 | $13,711 | |||||||
BRE Properties | 131,900 | 6,629 | |||||||
Camden Property Trust | 148,600 | 9,930 | |||||||
Equity Residential | 273,250 | 16,717 | |||||||
Essex Property Trust | 44,500 | 6,388 | |||||||
UDR, Inc. | 221,500 | 5,916 | |||||||
59,291 | |||||||||
Diversified (7.2%) | |||||||||
American Assets Trust | 181,523 | 3,652 | |||||||
Digital Realty Trust | 122,370 | 7,312 | |||||||
DuPont Fabros Technology | 228,684 | 5,294 | |||||||
Vornado Realty Trust | 130,523 | 11,213 | |||||||
27,471 | |||||||||
Health Care (10.5%) | |||||||||
HCP, Inc. | 369,400 | 13,771 | |||||||
Health Care REIT | 141,240 | 7,198 | |||||||
OMEGA Healthcare Investors | 146,619 | 2,661 | |||||||
Ventas, Inc. | 303,030 | 16,206 | |||||||
39,836 | |||||||||
Hotels, Restaurants & Leisure (3.1%) | |||||||||
Marriott International | 127,700 | 3,739 | |||||||
Starwood Hotels & Resorts Worldwide | 183,400 | 8,172 | |||||||
11,911 | |||||||||
Household Durables (0.8%) | |||||||||
Brookfield Residential Properties* | 364,646 | 2,895 | |||||||
Industrial (4.8%) | |||||||||
EastGroup Properties | 103,900 | 4,199 | |||||||
ProLogis, Inc. | 517,758 | 14,098 | |||||||
18,297 |
Lodging (3.6%) | |||||||||
Host Hotels & Resorts | 568,043 | $6,720 | |||||||
Pebblebrook Hotel Trust | 225,323 | 3,621 | |||||||
Strategic Hotel & Resorts* | 668,900 | 3,197 | |||||||
13,538 | |||||||||
Mixed (1.0%) | |||||||||
PS Business Parks | 69,100 | 3,778 | |||||||
Office (12.5%) | |||||||||
Alexandria Real Estate Equities | 86,850 | 6,324 | |||||||
Boston Properties | 214,400 | 22,360 | |||||||
Hudson Pacific Properties | 330,843 | 4,609 | |||||||
Kilroy Realty | 142,612 | 5,095 | |||||||
SL Green Realty | 122,400 | 8,842 | |||||||
47,230 | |||||||||
Real Estate Management & Development (4.3%) | |||||||||
Brookfield Asset Management Class A | 248,577 | 7,363 | |||||||
Brookfield Office Properties | 525,915 | 8,825 | |||||||
16,188 | |||||||||
Regional Malls (14.1%) | |||||||||
General Growth Properties | 448,398 | 6,116 | |||||||
Macerich Co. | 179,300 | 8,793 | |||||||
Simon Property Group | 280,748 | 32,988 | |||||||
Taubman Centers | 97,660 | 5,628 | |||||||
53,525 | |||||||||
Self Storage (6.1%) | |||||||||
Public Storage | 186,500 | 23,076 | |||||||
Shopping Centers (10.5%) | |||||||||
Developers Diversified Realty | 503,010 | 6,233 | |||||||
Equity One | 321,370 | 5,788 | |||||||
Federal Realty Investment Trust | 102,300 | 9,263 | |||||||
Regency Centers | 106,740 | 4,404 |
Tanger Factory Outlet Centers | 366,900 | $10,321 | |||||||
Urstadt Biddle Properties | 212,800 | 3,577 | |||||||
39,586 | |||||||||
Timber (3.5%) | |||||||||
Rayonier Inc. | 197,700 | 8,291 | |||||||
Weyerhaeuser Co. | 269,600 | 4,861 | |||||||
13,152 | |||||||||
Total Common Stocks (Cost $329,687) | 369,774 | ||||||||
Short-Term Investments (2.9%) | |||||||||
State Street Institutional Liquid Reserves Fund Institutional Class (Cost $11,017) | 11,017,040 | 11,017 | |||||||
Total Investments## (100.6%) (Cost $340,704) | 380,791 | ||||||||
Liabilities, less cash, receivables and other assets [(0.6%)] | (2,395 | ) | |||||||
Total Net Assets (100.0%) | $378,396 |
See Notes to Schedule of Investments
129
Schedule of Investments Regency Fund
TOP TEN EQUITY HOLDINGS |
1 | Moody's Corp. | 2.7 | % | ||||||
2 | Shire PLC ADR | 2.0 | % | ||||||
3 | Assurant, Inc. | 2.0 | % | ||||||
4 | NV Energy | 2.0 | % | ||||||
5 | Avnet, Inc. | 1.9 | % | ||||||
6 | Owens Corning | 1.9 | % | ||||||
7 | Macy's, Inc. | 1.9 | % | ||||||
8 | Coventry Health Care | 1.9 | % | ||||||
9 | McGraw-Hill Cos. | 1.9 | % | ||||||
10 | CIGNA Corp. | 1.9 | % |
Number of Shares | Value† (000's)b |
Common Stocks (97.2%) | |||||||||
Aerospace & Defense (2.2%) | |||||||||
Embraer SA ADR | 44,600 | $1,137 | |||||||
Spirit Aerosystems Holdings Class A* | 31,900 | 535 | |||||||
1,672 | |||||||||
Auto Components (1.8%) | |||||||||
Lear Corp. | 28,100 | 1,343 | |||||||
Automobiles (0.8%) | |||||||||
Harley-Davidson | 16,500 | 638 | |||||||
Beverages (1.2%) | |||||||||
Dr. Pepper Snapple Group | 22,700 | 873 | |||||||
Building Products (2.6%) | |||||||||
Masco Corp. | 58,100 | 515 | |||||||
Owens Corning* | 49,500 | 1,439 | |||||||
1,954 | |||||||||
Capital Markets (1.6%) | |||||||||
Invesco Ltd. | 67,400 | 1,233 | |||||||
Commercial Banks (7.7%) | |||||||||
Fifth Third Bancorp | 122,600 | 1,302 | |||||||
First Horizon National | 53,420 | 376 | |||||||
Huntington Bancshares | 168,300 | 847 | |||||||
KeyCorp | 26,800 | 178 | |||||||
Regions Financial | 153,700 | 698 | |||||||
SunTrust Banks | 57,900 | 1,152 | |||||||
Synovus Financial | 213,500 | 310 | |||||||
Zions Bancorp | 54,100 | 943 | |||||||
5,806 | |||||||||
Construction & Engineering (1.2%) | |||||||||
Chicago Bridge & Iron | 25,900 | 926 | |||||||
Containers & Packaging (1.3%) | |||||||||
Temple-Inland | 39,500 | 956 | |||||||
Diversified Financial Services (2.7%) | |||||||||
Moody's Corp. | 67,000 | 2,066 | |||||||
Electric Utilities (3.1%) | |||||||||
DPL Inc. | 3,000 | 90 | |||||||
Great Plains Energy | 38,300 | 749 | |||||||
NV Energy | 99,000 | 1,477 | |||||||
2,316 |
Electronic Equipment, Instruments & Components (3.3%) | |||||||||
Anixter International | 18,400 | $1,086 | |||||||
Avnet, Inc.* | 55,000 | 1,443 | |||||||
2,529 | |||||||||
Energy Equipment & Services (4.3%) | |||||||||
Complete Production Services* | 13,700 | 398 | |||||||
Ensco PLC ADR | 12,000 | 579 | |||||||
McDermott International* | 48,800 | 702 | |||||||
National Oilwell Varco | 11,600 | 767 | |||||||
Noble Corp.* | 9,400 | 318 | |||||||
Oceaneering International | 11,500 | 491 | |||||||
3,255 | |||||||||
Food Products (0.3%) | |||||||||
J.M. Smucker | 3,000 | 216 | |||||||
Gas Utilities (1.1%) | |||||||||
Questar Corp. | 46,300 | 868 | |||||||
Health Care Providers & Services (8.4%) | |||||||||
Aetna Inc. | 23,300 | 933 | |||||||
AmerisourceBergen Corp. | 34,300 | 1,358 | |||||||
CIGNA Corp. | 30,000 | 1,402 | |||||||
Coventry Health Care* | 43,000 | 1,414 | |||||||
MEDNAX, Inc.* | 19,500 | 1,273 | |||||||
6,380 | |||||||||
Household Durables (3.4%) | |||||||||
Newell Rubbermaid | 67,900 | 940 | |||||||
NVR, Inc.* | 1,400 | 891 | |||||||
Whirlpool Corp. | 11,700 | 733 | |||||||
2,564 | |||||||||
Household Products (1.4%) | |||||||||
Energizer Holdings* | 14,300 | 1,079 | |||||||
Insurance (9.2%) | |||||||||
Assurant, Inc. | 42,400 | 1,491 | |||||||
Lincoln National | 57,700 | 1,197 | |||||||
PartnerRe Ltd. | 11,300 | 644 | |||||||
Principal Financial Group | 48,800 | 1,238 | |||||||
Progressive Corp. | 37,900 | 727 | |||||||
Reinsurance Group of America | 9,100 | 486 |
StanCorp Financial Group | 2,600 | $79 | |||||||
W.R. Berkley | 36,400 | 1,124 | |||||||
6,986 | |||||||||
IT Services (1.5%) | |||||||||
Lender Processing Services | 65,400 | 1,154 | |||||||
Machinery (4.6%) | |||||||||
AGCO Corp.* | 22,900 | 981 | |||||||
Eaton Corp. | 22,400 | 962 | |||||||
Terex Corp.* | 31,200 | 503 | |||||||
WABCO Holdings* | 21,400 | 999 | |||||||
3,445 | |||||||||
Media (2.6%) | |||||||||
Cablevision Systems Class A | 29,300 | 529 | |||||||
McGraw-Hill Cos. | 33,300 | 1,402 | |||||||
1,931 | |||||||||
Metals & Mining (3.1%) | |||||||||
Cliffs Natural Resources | 15,100 | 1,251 | |||||||
Teck Resources Class B | 24,600 | 1,091 | |||||||
2,342 | |||||||||
Multi-Utilities (6.5%) | |||||||||
Alliant Energy | 31,600 | 1,282 | |||||||
CenterPoint Energy | 67,900 | 1,358 | |||||||
CMS Energy | 59,200 | 1,166 | |||||||
DTE Energy | 8,500 | 430 | |||||||
OGE Energy | 13,600 | 681 | |||||||
4,917 | |||||||||
Multiline Retail (3.1%) | |||||||||
J.C. Penney | 33,700 | 897 | |||||||
Macy's, Inc. | 55,300 | 1,435 | |||||||
2,332 | |||||||||
Oil, Gas & Consumable Fuels (5.2%) | |||||||||
Denbury Resources* | 60,500 | 965 | |||||||
Newfield Exploration* | 13,200 | 674 | |||||||
Noble Energy | 12,300 | 1,087 | |||||||
Whiting Petroleum* | 10,300 | 485 | |||||||
World Fuel Services | 19,300 | 717 | |||||||
3,928 | |||||||||
Pharmaceuticals (2.0%) | |||||||||
Shire PLC ADR | 15,700 | 1,524 |
See Notes to Schedule of Investments
130
Number of Shares | Value† (000's)b |
Real Estate Investment Trusts (5.3%) | |||||||||
Alexandria Real Estate Equities | 9,900 | $721 | |||||||
Annaly Capital Management | 40,600 | 736 | |||||||
Boston Properties | 7,500 | 782 | |||||||
Macerich Co. | 18,088 | 887 | |||||||
Vornado Realty Trust | 10,295 | 885 | |||||||
4,011 | |||||||||
Semiconductors & Semiconductor Equipment (3.3%) | |||||||||
Lam Research* | 23,500 | 873 | |||||||
NXP Semiconductors* | 44,700 | 728 | |||||||
ON Semiconductor* | 118,000 | 858 | |||||||
2,459 | |||||||||
Specialty Retail (2.4%) | |||||||||
Chico's FAS | 53,600 | 746 | |||||||
Limited Brands | 27,400 | 1,034 | |||||||
1,780 | |||||||||
Total Common Stocks (Cost $66,664) | 73,483 | ||||||||
Short-Term Investments (3.6%) | |||||||||
State Street Institutional Liquid Reserves Fund Institutional Class (Cost $2,756) | 2,755,611 | 2,756 | |||||||
Total Investments## (100.8%) (Cost $69,420) | 76,239 | ||||||||
Liabilities, less cash, receivables and other assets [(0.8%)] | (572 | ) | |||||||
Total Net Assets (100.0%) | $75,667 |
See Notes to Schedule of Investments
131
Schedule of Investments Select Equities Fund
TOP TEN EQUITY HOLDINGS |
1 | American Tower Class A | 6.8 | % | ||||||
2 | Nielsen Holdings | 5.1 | % | ||||||
3 | NextEra Energy | 4.9 | % | ||||||
4 | TransCanada Corp. | 4.9 | % | ||||||
5 | Discovery Communications Class C | 4.8 | % | ||||||
6 | BlackRock, Inc. | 4.4 | % | ||||||
7 | BorgWarner, Inc. | 4.3 | % | ||||||
8 | Praxair, Inc. | 4.1 | % | ||||||
9 | eBay Inc. | 4.1 | % | ||||||
10 | El Paso Corp. | 4.0 | % |
Number of Shares | Value† (000's)b |
Common Stocks (80.0%) | |||||||||
Air Freight & Logistics (9.3%) | |||||||||
C.H. Robinson Worldwide | 31,086 | $2,192 | |||||||
Expeditors International | 42,956 | 1,954 | |||||||
United Parcel Service Class B | 37,206 | 2,507 | |||||||
6,653 | |||||||||
Auto Components (4.3%) | |||||||||
BorgWarner, Inc.* | 43,376 | 3,097 | |||||||
Capital Markets (4.4%) | |||||||||
BlackRock, Inc. | 19,238 | 3,169 | |||||||
Chemicals (6.5%) | |||||||||
Air Products & Chemicals | 23,846 | 1,952 | |||||||
Monsanto Co. | 38,744 | 2,671 | |||||||
4,623 | |||||||||
Electric Utilities (4.9%) | |||||||||
NextEra Energy | 62,248 | 3,531 | |||||||
Health Care Providers & Services (2.7%) | |||||||||
Express Scripts* | 40,750 | 1,913 | |||||||
Household Durables (2.8%) | |||||||||
Fortune Brands | 35,000 | 1,999 | |||||||
Industrial Gases (4.1%) | |||||||||
Praxair, Inc. | 29,861 | 2,941 | |||||||
Internet Software & Services (4.1%) | |||||||||
eBay Inc.* | 93,975 | 2,901 | |||||||
IT Services (5.8%) | |||||||||
IBM | 11,149 | 1,917 | |||||||
Visa Inc. Class A | 25,605 | 2,250 | |||||||
4,167 | |||||||||
Media (4.8%) | |||||||||
Discovery Communications Class C* | 87,637 | 3,463 | |||||||
Metals & Mining (2.1%) | |||||||||
Freeport-McMoRan Copper & Gold | 31,424 | 1,481 | |||||||
Oil, Gas & Consumable Fuels (12.3%) | |||||||||
El Paso Corp. | 147,635 | 2,826 | |||||||
Suncor Energy | 75,407 | 2,405 | |||||||
TransCanada Corp. | 81,802 | 3,530 | |||||||
8,761 |
Professional Services (5.1%) | |||||||||
Nielsen Holdings* | 122,000 | $3,618 | |||||||
Wireless Telecommunication Services (6.8%) | |||||||||
American Tower Class A* | 90,016 | 4,848 | |||||||
Total Common Stocks (Cost $53,326) | 57,165 | ||||||||
Short-Term Investments (20.0%) | |||||||||
State Street Institutional Treasury Money Market Fund Institutional Class (Cost $14,280) | 14,279,666 | 14,280 | |||||||
Total Investments## (100.0%) (Cost $67,606) | 71,445 | ||||||||
Liabilities, less cash, receivables and other assets [(0.0%)] | (17 | ) | |||||||
Total Net Assets (100.0%) | $71,428 |
See Notes to Schedule of Investments
132
Schedule of Investments Small Cap Growth Fund
TOP TEN EQUITY HOLDINGS |
1 | PriceSmart, Inc. | 3.1 | % | ||||||
2 | Keynote Systems | 2.9 | % | ||||||
3 | HEICO Corp. | 2.8 | % | ||||||
4 | Ultimate Software Group | 2.4 | % | ||||||
5 | Triumph Group | 2.0 | % | ||||||
6 | Computer Programs and Systems | 1.9 | % | ||||||
7 | LivePerson, Inc. | 1.8 | % | ||||||
8 | Rosetta Resources | 1.8 | % | ||||||
9 | Polypore International | 1.8 | % | ||||||
10 | Tractor Supply | 1.8 | % |
Number of Shares | Value† (000's)b |
Common Stocks (99.0%) | |||||||||
Aerospace & Defense (4.8%) | |||||||||
HEICO Corp. | 100,795 | $5,495 | |||||||
Triumph Group | 74,600 | 3,908 | |||||||
9,403 | |||||||||
Air Freight & Logistics (1.2%) | |||||||||
Hub Group Class A* | 71,700 | 2,258 | |||||||
Capital Markets (1.2%) | |||||||||
HFF Inc. Class A* | 202,900 | 2,398 | |||||||
Chemicals (1.1%) | |||||||||
Zagg Inc.* | 144,300 | 2,169 | |||||||
Commercial Banks (1.3%) | |||||||||
Texas Capital Bancshares* | 99,200 | 2,546 | |||||||
Commercial Services & Supplies (1.3%) | |||||||||
Interface, Inc. Class A | 167,200 | 2,521 | |||||||
Communications Equipment (0.9%) | |||||||||
InterDigital Inc. | 24,800 | 1,746 | |||||||
Consumer Finance (1.8%) | |||||||||
First Cash Financial Services* | 73,156 | 3,417 | |||||||
Diversified Consumer Services (1.3%) | |||||||||
Steiner Leisure* | 65,800 | 2,625 | |||||||
Diversified Financial Services (1.1%) | |||||||||
Portfolio Recovery Associates* | 29,200 | 2,135 | |||||||
Electrical Equipment (1.8%) | |||||||||
Polypore International* | 56,100 | 3,460 | |||||||
Energy Equipment & Services (2.3%) | |||||||||
Complete Production Services* | 68,700 | 1,997 | |||||||
Superior Energy Services* | 72,800 | 2,571 | |||||||
4,568 | |||||||||
Food & Staples Retailing (3.1%) | |||||||||
PriceSmart, Inc. | 91,800 | 6,009 | |||||||
Food Products (2.4%) | |||||||||
Diamond Foods | 26,900 | 2,121 | |||||||
Hain Celestial Group* | 80,700 | 2,553 | |||||||
4,674 |
Health Care Equipment & Supplies (4.6%) | |||||||||
Neogen Corporation* | 67,600 | $2,347 | |||||||
Sirona Dental Systems* | 48,100 | 2,244 | |||||||
Volcano Corp.* | 62,200 | 1,863 | |||||||
Zoll Medical* | 58,000 | 2,592 | |||||||
9,046 | |||||||||
Health Care Providers & Services (7.4%) | |||||||||
Accretive Health* | 82,600 | 2,217 | |||||||
Air Methods* | 50,300 | 3,347 | |||||||
Catalyst Health Solutions* | 53,900 | 2,896 | |||||||
HMS Holdings* | 117,900 | 3,093 | |||||||
U.S. Physical Therapy | 141,200 | 2,804 | |||||||
14,357 | |||||||||
Health Care Technology (5.0%) | |||||||||
Computer Programs and Systems | 51,700 | 3,661 | |||||||
Quality Systems | 32,500 | 2,991 | |||||||
SXC Health Solutions* | 56,400 | 3,085 | |||||||
9,737 | |||||||||
Hotels, Restaurants & Leisure (5.1%) | |||||||||
Buffalo Wild Wings* | 31,100 | 1,917 | |||||||
Orient-Express Hotels Class A* | 350,953 | 2,752 | |||||||
Peet's Coffee & Tea* | 48,917 | 2,849 | |||||||
Penn National Gaming* | 62,100 | 2,472 | |||||||
9,990 | |||||||||
Internet & Catalog Retail (1.5%) | |||||||||
Shutterfly, Inc.* | 53,600 | 2,876 | |||||||
Internet Software & Services (7.4%) | |||||||||
Keynote Systems | 236,740 | 5,689 | |||||||
LivePerson, Inc.* | 306,800 | 3,605 | |||||||
Mercadolibre Inc. | 40,200 | 2,708 | |||||||
Rackspace Hosting* | 64,800 | 2,369 | |||||||
14,371 | |||||||||
IT Services (3.7%) | |||||||||
Echo Global Logistics* | 161,000 | 2,254 | |||||||
Heartland Payment Systems | 128,800 | 2,770 |
ServiceSource International* | 123,000 | $2,223 | |||||||
7,247 | |||||||||
Leisure Equipment & Products (1.1%) | |||||||||
Brunswick Corp. | 138,900 | 2,207 | |||||||
Machinery (2.0%) | |||||||||
Actuant Corp. Class A | 97,800 | 1,964 | |||||||
Gorman-Rupp | 69,005 | 2,015 | |||||||
3,979 | |||||||||
Oil, Gas & Consumable Fuels (6.5%) | |||||||||
Berry Petroleum Class A | 59,500 | 2,917 | |||||||
Bill Barrett* | 30,400 | 1,458 | |||||||
Brigham Exploration* | 73,300 | 2,133 | |||||||
Rosetta Resources* | 78,400 | 3,602 | |||||||
World Fuel Services | 69,700 | 2,589 | |||||||
12,699 | |||||||||
Personal Products (0.9%) | |||||||||
Elizabeth Arden* | 56,100 | 1,808 | |||||||
Pharmaceuticals (1.4%) | |||||||||
Medicis Pharmaceutical Class A | 72,500 | 2,820 | |||||||
Professional Services (1.0%) | |||||||||
Acacia Research* | 46,500 | 2,032 | |||||||
Road & Rail (1.7%) | |||||||||
Old Dominion Freight Line* | 104,514 | 3,357 | |||||||
Semiconductors & Semiconductor Equipment (3.4%) | |||||||||
Cavium Inc.* | 62,900 | 2,025 | |||||||
Nanometrics Inc.* | 145,400 | 2,310 | |||||||
Netlogic Microsystems* | 74,900 | 2,249 | |||||||
6,584 | |||||||||
Software (9.4%) | |||||||||
ACI Worldwide* | 85,600 | 2,560 | |||||||
BroadSoft Inc.* | 102,000 | 3,085 | |||||||
Fortinet Inc.* | 99,200 | 1,898 | |||||||
QLIK Technologies* | 67,500 | 1,713 | |||||||
SS&C Technologies Holdings* | 99,022 | 1,633 | |||||||
TIBCO Software* | 120,300 | 2,692 |
See Notes to Schedule of Investments
133
Number of Shares | Value† (000's)b |
Ultimate Software Group* | 94,100 | $4,761 | |||||||
18,342 | |||||||||
Specialty Retail (8.2%) | |||||||||
GNC Acquisition Holdings Class A* | 84,200 | 2,038 | |||||||
Hibbett Sports* | 69,600 | 2,607 | |||||||
Sally Beauty Holdings* | 170,600 | 2,883 | |||||||
Tractor Supply | 56,100 | 3,443 | |||||||
Ulta Salon, Cosmetics & Fragrance* | 49,800 | 2,942 | |||||||
Vitamin Shoppe* | 45,100 | 1,998 | |||||||
15,911 | |||||||||
Textiles, Apparel & Luxury Goods (1.1%) | |||||||||
Deckers Outdoor* | 25,000 | 2,224 | |||||||
Trading Companies & Distributors (2.0%) | |||||||||
Kaman Corp. | 57,000 | 1,946 | |||||||
MSC Industrial Direct Class A | 31,600 | 1,949 | |||||||
3,895 | |||||||||
Total Common Stocks (Cost $174,907) | 193,411 | ||||||||
Short-Term Investments (1.0%) | |||||||||
State Street Institutional Liquid Reserves Fund Institutional Class (Cost $1,975) | 1,974,759 | 1,975 | |||||||
Total Investments## (100.0%) (Cost $176,882) | 195,386 | ||||||||
Liabilities, less cash, receivables and other assets [(0.0%)] | (80 | ) | |||||||
Total Net Assets (100.0%) | $195,306 |
See Notes to Schedule of Investments
134
Schedule of Investments Socially Responsive Fund
TOP TEN EQUITY HOLDINGS |
1 | BG Group PLC | 4.4 | % | ||||||
2 | Danaher Corp. | 4.2 | % | ||||||
3 | Target Corp. | 4.0 | % | ||||||
4 | Google Inc. Class A | 4.0 | % | ||||||
5 | Newfield Exploration | 4.0 | % | ||||||
6 | Procter & Gamble | 3.9 | % | ||||||
7 | Progressive Corp. | 3.8 | % | ||||||
8 | Texas Instruments | 3.7 | % | ||||||
9 | Charles Schwab | 3.4 | % | ||||||
10 | Ecolab Inc. | 3.3 | % |
Number of Shares | Value† (000's)b |
Common Stocks (97.3%) | |||||||||
Capital Markets (7.5%) | |||||||||
Bank of New York Mellon | 1,149,852 | $23,767 | |||||||
BlackRock, Inc. | 267,770 | 44,115 | |||||||
Charles Schwab | 4,532,909 | 55,891 | |||||||
123,773 | |||||||||
Chemicals (3.3%) | |||||||||
Ecolab Inc. | 1,028,300 | 55,117 | |||||||
Commercial Services & Supplies (1.8%) | |||||||||
Herman Miller | 1,523,075 | 30,264 | |||||||
Electronic Equipment, Instruments & Components (4.9%) | |||||||||
Anixter International | 691,205 | 40,788 | |||||||
National Instruments | 1,590,795 | 40,454 | |||||||
81,242 | |||||||||
Food Products (4.7%) | |||||||||
J.M. Smucker | 342,300 | 24,677 | |||||||
McCormick & Company | 1,090,550 | 52,117 | |||||||
76,794 | |||||||||
Health Care Equipment & Supplies (6.3%) | |||||||||
Becton, Dickinson & Co. | 624,265 | 50,802 | |||||||
Covidien PLC | 1,009,500 | 52,676 | |||||||
103,478 | |||||||||
Household Products (3.9%) | |||||||||
Procter & Gamble | 1,004,575 | 63,971 | |||||||
Industrial Conglomerates (7.3%) | |||||||||
3M Co. | 613,260 | 50,888 | |||||||
Danaher Corp. | 1,522,285 | 69,736 | |||||||
120,624 | |||||||||
Industrial Gases (2.0%) | |||||||||
Praxair, Inc. | 331,000 | 32,600 | |||||||
Insurance (3.8%) | |||||||||
Progressive Corp. | 3,228,290 | 61,919 | |||||||
Internet Software & Services (7.1%) | |||||||||
Google Inc. Class A* | 120,515 | 65,194 | |||||||
Yahoo! Inc.* | 3,784,560 | 51,489 | |||||||
116,683 |
IT Services (2.5%) | |||||||||
MasterCard, Inc. Class A | 124,320 | $40,990 | |||||||
Media (4.9%) | |||||||||
Comcast Corp. Class A Special | 1,472,125 | 31,150 | |||||||
Scripps Networks Interactive Class A | 1,170,040 | 50,136 | |||||||
81,286 | |||||||||
Multiline Retail (4.0%) | |||||||||
Target Corp. | 1,289,790 | 66,643 | |||||||
Oil, Gas & Consumable Fuels (13.1%) | |||||||||
BG Group PLC | 3,386,719 | 73,229 | |||||||
Cimarex Energy | 600,429 | 42,684 | |||||||
Newfield Exploration* | 1,276,250 | 65,152 | |||||||
Noble Energy | 395,140 | 34,915 | |||||||
215,980 | |||||||||
Pharmaceuticals (7.9%) | |||||||||
Hospira, Inc.* | 1,133,000 | 52,345 | |||||||
Novo Nordisk A/S Class B | 269,148 | 28,726 | |||||||
Roche Holding AG | 283,448 | 49,630 | |||||||
130,701 | |||||||||
Professional Services (1.0%) | |||||||||
ICF International* | 751,570 | 17,038 | |||||||
Road & Rail (1.6%) | |||||||||
Canadian National Railway | 348,625 | 25,729 | |||||||
Semiconductors & Semiconductor Equipment (6.5%) | |||||||||
Altera Corp. | 1,275,336 | 46,409 | |||||||
Texas Instruments | 2,328,680 | 61,035 | |||||||
107,444 | |||||||||
Specialty Chemicals (0.9%) | |||||||||
Novozymes A/S | 98,700 | 14,455 | |||||||
Trading Companies & Distributors (2.3%) | |||||||||
W.W. Grainger | 250,175 | 38,552 | |||||||
Total Common Stocks (Cost $1,430,852) | 1,605,283 | ||||||||
Short-Term Investments (2.5%) | |||||||||
State Street Institutional Treasury Money Market Fund Institutional Class (Cost $40,501) | 40,501,281 | $40,501 | |||||||
Principal Amount | |||||||||
Certificates of Deposit (0.0%) | |||||||||
Carver Federal Savings, 0.35%, due 9/26/11 | $ | 100,000 | 100 | ||||||
Self Help Credit Union, 1.00%, due 10/29/11 | 250,000 | 250 | |||||||
Self Help Credit Union, 1.00%, due 11/16/11 | 250,000 | 250 | |||||||
Total Certificates of Deposit# (Cost $600) | 600 | ||||||||
Total Investments## (99.8%) (Cost $1,471,953) | 1,646,384 | ||||||||
Cash, receivables and other assets, less liabilities (0.2%) | 2,581 | ||||||||
Total Net Assets (100.0%) | $1,648,965 |
See Notes to Schedule of Investments
135
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 Emerging Markets Equity Fund ("Emerging Markets Equity"), Neuberger Berman Equity Income Fund ("Equity Income"), Neuberger Berman Focus Fund ("Focus"), Neuberger Berman Genesis Fund ("Genesis"), Neuberger Berman Global Equity Fund ("Global Equity"), Neuberger Berman Global Thematic Opportunities Fund ("Global Thematic Opportunities"), Neuberger Berman Guardian Fund ("Guardian"), Neuberger Berman International Fund ("International"), Neuberger Berman International Institutional Fund ("International Institutional"), Neuberger Berman International Large Cap Fund ("International Large Cap"), Neuberger Berman Intrinsic Value Fund ("Intrinsic Value"), Neuberger Berman Large Cap Disciplined Growth Fund ("Large Cap Disciplined Growth"), Neuberger Berman Large Cap Value Fund ("Large Cap Value"), Neuberger Berman Mid Cap Growth Fund ("Mid Cap Growth"), Neuberger Berman Multi-Cap Opportunities Fund ("Multi-Cap Opportunities"), Neuberger Berman Partners Fund ("Partners"), Neuberger Berman Real Estate Fund ("Real Estate"), Neuberger Berman Regency Fund ("Regency"), Neuberger Berman Select Equities Fund ("Select Equities"), Neuberger Berman Small Cap Growth Fund ("Small Cap Growth"), and Neuberger Berman Socially Responsive Fund ("Socially Responsive") (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 the Funds' 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 in equity securities, exchange traded funds, written option contracts and purchased option contracts, 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 convertible bonds and U.S. Treasury 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 such as yields or prices of securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions (generally Level 2 inputs). |
See Notes to Financial Statements
136
Notes to Schedule of Investments (cont'd)
Other Level 2 inputs used by an independent pricing service to value convertible bonds generally include underlying stock data, dealer quotes, conversion premiums, listed bond and preferred stock prices and other market information which may include benchmark curves, trade execution data, and sensitivity analysis, when available. Other Level 2 inputs used by an independent pricing service to value U.S. Treasury Securities generally include quotes from several inter-dealer brokers 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. | |||
Management has developed a process to periodically review information provided by independent pricing services for all types of securities. | |||
Certificates of Deposit are valued at amortized cost. Investments in State Street Institutional Liquid Reserves Fund Institutional Class, State Street Institutional Treasury Money Market Fund Institutional Class, and State Street Institutional Treasury Plus Fund Institutional Class are valued using the respective fund's daily calculated net asset value per share. | |||
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 Equity 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 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 rates 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 a Fund could expect to receive for those securities. In this event, 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. | |||
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 August 31, 2011: |
Asset Valuation Inputs | |||||||||||||||||
(000's omitted) | Level 1 | Level 2 | Level 3§§ | Total | |||||||||||||
Emerging Markets Equity | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks§ | $ | 101,139 | $ | — | $— | $ | 101,139 | ||||||||||
Preferred Stocks§ | 6,252 | — | 0 | 6,252 | |||||||||||||
Short-Term Investments | — | 6,467 | — | 6,467 | |||||||||||||
Total Investments | 107,391 | 6,467 | 0 | 113,858 |
See Notes to Financial Statements
137
Notes to Schedule of Investments (cont'd)
(000's omitted) | Level 1 | Level 2 | Level 3§§ | Total | |||||||||||||
Equity Income | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks | |||||||||||||||||
Aerospace & Defense | $ | 30,694 | $ | — | $— | $ | 30,694 | ||||||||||
Air Freight & Logistics | 24,665 | — | — | 24,665 | |||||||||||||
Beverages | 43,901 | — | — | 43,901 | |||||||||||||
Capital Markets | 39,835 | — | — | 39,835 | |||||||||||||
Diversified Financial Services | 11,396 | — | — | 11,396 | |||||||||||||
Diversified Telecommunication Services | 35,119 | — | — | 35,119 | |||||||||||||
Electric Utilities | 66,651 | — | — | 66,651 | |||||||||||||
Food Products | 28,764 | — | — | 28,764 | |||||||||||||
Gas Utilities | 19,786 | — | — | 19,786 | |||||||||||||
Machinery | 9,206 | — | — | 9,206 | |||||||||||||
Media | 15,271 | 15,362 | — | 30,633 | |||||||||||||
Metals & Mining | 54,667 | — | — | 54,667 | |||||||||||||
Multi-Utilities | 134,024 | — | — | 134,024 | |||||||||||||
Oil, Gas & Consumable Fuels | 176,354 | — | — | 176,354 | |||||||||||||
Pharmaceuticals | 44,593 | — | — | 44,593 | |||||||||||||
Real Estate Investment Trusts | 294,060 | — | — | 294,060 | |||||||||||||
Road & Rail | 24,432 | — | — | 24,432 | |||||||||||||
Semiconductors & Semiconductor Equipment | 18,427 | — | — | 18,427 | |||||||||||||
Tobacco | 28,837 | — | — | 28,837 | |||||||||||||
Transportation Infrastructure | 22,067 | — | — | 22,067 | |||||||||||||
Water Utilities | 19,475 | — | — | 19,475 | |||||||||||||
Wireless Telecommunication Services | 42,140 | — | — | 42,140 | |||||||||||||
Total Common Stocks | 1,184,364 | 15,362 | — | 1,199,726 | |||||||||||||
Convertible Preferred Stocks | 11,097 | — | — | 11,097 | |||||||||||||
Convertible Bonds | — | 193,864 | — | 193,864 | |||||||||||||
U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government | 6,000 | 6,000 | |||||||||||||||
Short-Term Investments | — | 70,463 | — | 70,463 | |||||||||||||
Total Investments | 1,195,461 | 285,689 | — | 1,481,150 | |||||||||||||
Focus | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks§ | 519,174 | — | — | 519,174 | |||||||||||||
Short-Term Investments | — | 13,842 | — | 13,842 | |||||||||||||
Total Investments | 519,174 | 13,842 | — | 533,016 |
See Notes to Financial Statements
138
Notes to Schedule of Investments (cont'd)
(000's omitted) | Level 1 | Level 2 | Level 3§§ | Total | |||||||||||||
Genesis | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks§ | $ | 10,360,400 | $ | — | $— | $ | 10,360,400 | ||||||||||
Exchange Traded Funds | 109,442 | — | — | 109,442 | |||||||||||||
Short-Term Investments | — | 693,589 | — | 693,589 | |||||||||||||
Total Investments | 10,469,842 | 693,589 | — | 11,163,431 | |||||||||||||
Global Equity | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks§ | 937 | — | — | 937 | |||||||||||||
Short-Term Investments | — | 20 | — | 20 | |||||||||||||
Total Investments | 937 | 20 | — | 957 | |||||||||||||
Global Thematic Opportunities | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks | |||||||||||||||||
Australia | 502 | — | — | 502 | |||||||||||||
Brazil | 557 | — | — | 557 | |||||||||||||
Canada | 3,310 | — | — | 3,310 | |||||||||||||
Chile | 604 | — | — | 604 | |||||||||||||
China | 1,111 | — | — | 1,111 | |||||||||||||
France | 1,046 | — | — | 1,046 | |||||||||||||
Hong Kong | 490 | — | — | 490 | |||||||||||||
India | 538 | — | — | 538 | |||||||||||||
Indonesia | 768 | — | — | 768 | |||||||||||||
Japan | 2,236 | — | — | 2,236 | |||||||||||||
Malaysia | 420 | — | — | 420 | |||||||||||||
Netherlands | 592 | — | — | 592 | |||||||||||||
Philippines | 477 | — | — | 477 | |||||||||||||
Poland | 576 | — | — | 576 | |||||||||||||
South Africa | 478 | — | — | 478 | |||||||||||||
Thailand | — | 514 | — | 514 | |||||||||||||
United Kingdom | 470 | — | — | 470 | |||||||||||||
United States | 9,365 | — | — | 9,365 | |||||||||||||
Total Common Stocks | 23,540 | 514 | — | 24,054 | |||||||||||||
Short-Term Investments | — | 3,864 | — | 3,864 | |||||||||||||
Total Investments | 23,540 | 4,378 | — | 27,918 | |||||||||||||
Guardian | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks§ | 1,089,182 | — | — | 1,089,182 | |||||||||||||
Short-Term Investments | — | 12,057 | — | 12,057 | |||||||||||||
Total Investments | 1,089,182 | 12,057 | — | 1,101,239 |
See Notes to Financial Statements
139
Notes to Schedule of Investments (cont'd)
(000's omitted) | Level 1 | Level 2 | Level 3§§ | Total | |||||||||||||
International | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks§ | $ | 292,905 | $ | — | $— | $ | 292,905 | ||||||||||
Preferred Stocks§ | — | — | 12 | 12 | |||||||||||||
Rights§ | 0 | — | — | 0 | |||||||||||||
Short-Term Investments | — | 8,532 | — | 8,532 | |||||||||||||
Total Investments | 292,905 | 8,532 | 12 | 301,449 | |||||||||||||
International Institutional | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks§ | 328,494 | — | — | 328,494 | |||||||||||||
Rights§ | 0 | — | — | 0 | |||||||||||||
Short-Term Investments | — | 12,608 | — | 12,608 | |||||||||||||
Total Investments | 328,494 | 12,608 | — | 341,102 | |||||||||||||
International Large Cap | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks§ | 180,970 | — | — | 180,970 | |||||||||||||
Rights§ | 0 | — | — | 0 | |||||||||||||
Short-Term Investments | — | 5,466 | — | 5,466 | |||||||||||||
Total Investments | 180,970 | 5,466 | — | 186,436 | |||||||||||||
Intrinsic Value | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks§ | 122,363 | — | — | 122,363 | |||||||||||||
Rights§ | — | — | 0 | 0 | |||||||||||||
Short-Term Investments | — | 5,170 | — | 5,170 | |||||||||||||
Total Investments | 122,363 | 5,170 | 0 | 127,533 | |||||||||||||
Large Cap Disciplined Growth | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks§ | 633,718 | — | — | 633,718 | |||||||||||||
Short-Term Investments | — | 26,337 | — | 26,337 | |||||||||||||
Total Investments | 633,718 | 26,337 | — | 660,055 | |||||||||||||
Large Cap Value | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks§ | 2,769 | — | — | 2,769 | |||||||||||||
Short-Term Investments | — | 174 | — | 174 | |||||||||||||
Total Investments | 2,769 | 174 | — | 2,943 | |||||||||||||
Mid Cap Growth | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks§ | 493,591 | — | — | 493,591 | |||||||||||||
Short-Term Investments | — | 6,583 | — | 6,583 | |||||||||||||
Total Investments | 493,591 | 6,583 | — | 500,174 |
See Notes to Financial Statements
140
Notes to Schedule of Investments (cont'd)
(000's omitted) | Level 1 | Level 2 | Level 3§§ | Total | |||||||||||||
Multi-Cap Opportunities | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks§ | $ | 88,589 | $ | — | $— | $ | 88,589 | ||||||||||
Short-Term Investments | — | 3,110 | — | 3,110 | |||||||||||||
Total Investments | 88,589 | 3,110 | — | 91,699 | |||||||||||||
Partners | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks§ | 2,052,108 | — | — | 2,052,108 | |||||||||||||
Short-Term Investments | — | 57,907 | — | 57,907 | |||||||||||||
Total Investments | 2,052,108 | 57,907 | — | 2,110,015 | |||||||||||||
Real Estate | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks§ | 369,774 | — | — | 369,774 | |||||||||||||
Short-Term Investments | — | 11,017 | — | 11,017 | |||||||||||||
Total Investments | 369,774 | 11,017 | — | 380,791 | |||||||||||||
Regency | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks§ | 73,483 | — | — | 73,483 | |||||||||||||
Short-Term Investments | — | 2,756 | — | 2,756 | |||||||||||||
Total Investments | 73,483 | 2,756 | — | 76,239 | |||||||||||||
Select Equities | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks§ | 57,165 | — | — | 57,165 | |||||||||||||
Short-Term Investments | — | 14,280 | — | 14,280 | |||||||||||||
Total Investments | 57,165 | 14,280 | — | 71,445 | |||||||||||||
Small Cap Growth | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks§ | 193,411 | — | — | 193,411 | |||||||||||||
Short-Term Investments | — | 1,975 | — | 1,975 | |||||||||||||
Total Investments | 193,411 | 1,975 | — | 195,386 | |||||||||||||
Socially Responsive | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks§ | 1,605,283 | — | — | 1,605,283 | |||||||||||||
Short-Term Investments | — | 40,501 | — | 40,501 | |||||||||||||
Certificates of Deposit | — | 600 | — | 600 | |||||||||||||
Total Investments | 1,605,283 | 41,101 | — | 1,646,384 |
§ | The Schedule of Investments (and Summary Schedule of Investments by Industry for the international funds) provide information on the industry and/or country categorization for the portfolio. |
See Notes to Financial Statements
141
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: |
(000's omitted) | Beginning balance, as of 9/1/10 | 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 8/31/11 | Net change in unrealized appreciation/ (depreciation) from investments still held as of 8/31/11 | ||||||||||||||||||||||||||||
Investments in Securities: | |||||||||||||||||||||||||||||||||||||
Emerging Markets Equity | |||||||||||||||||||||||||||||||||||||
Preferred Stocks Brazil | $ 0 | $— | $— | $— | $— | $— | $— | $ 0 | $ 0 | ||||||||||||||||||||||||||||
Total | 0 | — | — | — | — | — | — | 0 | 0 | ||||||||||||||||||||||||||||
International | |||||||||||||||||||||||||||||||||||||
Preferred Stocks Brazil | 11 | — | 1 | — | — | — | — | 12 | 1 | ||||||||||||||||||||||||||||
Total | 11 | — | 1 | — | — | — | — | 12 | 1 | ||||||||||||||||||||||||||||
Intrinsic Value | |||||||||||||||||||||||||||||||||||||
Rights | 0 | — | — | — | — | — | — | 0 | — | ||||||||||||||||||||||||||||
Total | 0 | — | — | — | — | — | — | 0 | — |
The Funds had no significant transfers between Levels 1 and 2 during the year ended August 31, 2011. |
Liability Valuation Inputs
The following is a summary, categorized by Level, of inputs used to value the Fund's derivatives as of August 31, 2011: |
(000's omitted) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Equity Income | |||||||||||||||||
Option Contracts | $(899) | $— | $— | $(899) |
# | At cost, which approximates market value. |
## | At August 31, 2011, selected fund information on a U.S. federal income tax basis was as follows: |
(000's omitted) | Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | |||||||||||||
Emerging Markets Equity | $ 121,521 | $ 4,453 | $ 12,116 | $ (7,663) | |||||||||||||
Equity Income | 1,439,077 | 83,259 | 41,186 | 42,073 | |||||||||||||
Focus | 534,709 | 28,247 | 29,940 | (1,693) | |||||||||||||
Genesis | 7,200,674 | 4,131,642 | 168,885 | 3,962,757 | |||||||||||||
Global Equity | 1,037 | 16 | 96 | (80) | |||||||||||||
Global Thematic Opportunities | 28,927 | 343 | 1,352 | (1,009) | |||||||||||||
Guardian | 941,741 | 201,999 | 42,501 | 159,498 | |||||||||||||
International | 261,260 | 49,897 | 9,708 | 40,189 |
See Notes to Financial Statements
142
Notes to Schedule of Investments (cont'd)
(000's omitted) | Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | |||||||||||||
International Institutional | $ 330,081 | $ 29,636 | $ 18,615 | $ 11,021 | |||||||||||||
International Large Cap | 172,304 | 22,170 | 8,038 | 14,132 | |||||||||||||
Intrinsic Value | 134,186 | 11,432 | 18,085 | (6,653 | ) | ||||||||||||
Large Cap Disciplined Growth | 623,958 | 66,927 | 30,830 | 36,097 | |||||||||||||
Large Cap Value | 2,925 | 80 | 62 | 18 | |||||||||||||
Mid Cap Growth | 357,411 | 150,997 | 8,234 | 142,763 | |||||||||||||
Multi-Cap Opportunities | 90,048 | 5,255 | 3,604 | 1,651 | |||||||||||||
Partners | 1,846,601 | 387,994 | 124,580 | 263,414 | |||||||||||||
Real Estate | 344,571 | 47,246 | 11,026 | 36,220 | |||||||||||||
Regency | 70,760 | 10,377 | 4,898 | 5,479 | |||||||||||||
Select Equities | 67,608 | 4,776 | 939 | 3,837 | |||||||||||||
Small Cap Growth | 178,514 | 23,147 | 6,275 | 16,872 | |||||||||||||
Socially Responsive | 1,473,171 | 232,848 | 59,635 | 173,213 |
* | Security did not produce income during the last twelve months. |
^ | Affiliated issuer (see Note F of Notes to Financial Statements). |
‡‡ | At August 31, 2011, Equity Income had outstanding call and put options written as follows: |
Shares | Securities and Options | Market Value of Options | |||||||
15,000 | AvalonBay Communities, Call January 2012 @ 145 | $ 39,000 | |||||||
15,000 | AvalonBay Communities, Call January 2012 @ 155 | 45,000 | |||||||
6,200 | American Campus Communities, Call December 2011 @ 40 | 5,000 | |||||||
15,000 | Deere & Co., Put December 2011 @ 65 | 31,000 | |||||||
15,000 | Digital Realty Trust, Call January 2012 @ 70 | 10,000 | |||||||
15,000 | Johnson & Johnson, Call January 2012 @ 72.5 | 10,000 | |||||||
20,000 | Philip Morris International, Call September 2011 @ 70 | 26,000 | |||||||
10,000 | Philip Morris International, Call December 2011 @ 77.5 | 7,000 | |||||||
10,000 | Royal Gold, Call October 2011 @ 60 | 159,000 | |||||||
20,000 | Royal Gold, Call October 2011 @ 65 | 245,000 | |||||||
10,000 | Royal Gold, Call October 2011 @ 70 | 82,000 | |||||||
10,000 | Royal Gold, Call January 2012 @ 70 | 99,000 | |||||||
10,000 | Royal Gold, Call January 2012 @ 75 | 78,000 | |||||||
10,000 | Royal Gold, Call January 2012 @ 80 | 55,000 | |||||||
10,000 | World Wrestling Entertainment, Put October 2011 @ 10 | 8,000 | |||||||
Total | $899,000 |
See Notes to Financial Statements
143
Notes to Schedule of Investments (cont'd)
ñ | Restricted security subject to restrictions on resale under federal securities laws. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers under Rule 144A under the Securities Act of 1933, as amended, and have been deemed by the investment manager to be liquid. At August 31, 2011, these securities amounted to approximately $70,409,000 or 4.7% of net assets for Equity Income, approximately $1,093,000 or 0.0% of net assets for Genesis, approximately $1,419,000 or 0.5% of net assets for International, and approximately $696,000 or 0.2% of net assets for International Institutional. |
Ñ | These securities have been deemed by the investment manager to be illiquid. At August 31, 2011, these securities amounted to approximately $109 or 0.0% of net assets for Emerging Markets Equity, approximately $6,026,000 or 2.0% of net assets for International, and approximately $9,371,000 or 2.7% of net assets for International Institutional. |
^^ | Value of the security was determined using methods the Board has approved on the belief they reflect fair value. |
a | Step Bond: Coupon rate is a fixed rate for an initial period then resets at a specified date and rate. |
b | A zero balance may reflect actual amounts rounding to less than $1,000. |
See Notes to Financial Statements
144
Statements of Assets and Liabilities
Neuberger Berman Equity Funds
(000's omitted except per share amounts)
EMERGING MARKETS EQUITY FUND | EQUITY INCOME FUND | FOCUS FUND | GENESIS FUND | GLOBAL EQUITY FUND | ||||||||||||
August 31, 2011 | August 31, 2011 | August 31, 2011 | August 31, 2011 | August 31, 2011 | ||||||||||||
Assets | ||||||||||||||||
Investments in securities, at value* (Notes A & F)—see Schedule of Investments: | ||||||||||||||||
Unaffiliated issuers | $ | 113,858 | $ | 1,481,150 | $ | 533,016 | $ | 6,334,236 | $ | 957 | ||||||
Affiliated issuers | — | — | — | 4,829,195 | — | |||||||||||
113,858 | 1,481,150 | 533,016 | 11,163,431 | 957 | ||||||||||||
Cash | — | — | — | 205 | — | |||||||||||
Foreign currency | 232 | 1,004 | — | — | — | |||||||||||
Deposits with brokers for open option contracts | — | 1,129 | — | — | — | |||||||||||
Dividends and interest receivable | 236 | 5,393 | 1,401 | 11,331 | 1 | |||||||||||
Receivable for securities sold | 526 | 2,762 | 1,571 | 16,671 | — | |||||||||||
Receivable for Fund shares sold | 344 | 23,335 | 49 | 22,038 | — | |||||||||||
Receivable from broker | 218 | — | — | — | — | |||||||||||
Receivable from Management—net (Note B) | 21 | — | — | — | 63 | |||||||||||
Prepaid expenses and other assets | 33 | 63 | 55 | 485 | — | |||||||||||
Total Assets | 115,468 | 1,514,836 | 536,092 | 11,214,161 | 1,021 | |||||||||||
Liabilities | ||||||||||||||||
Due to custodian | 218 | — | — | — | — | |||||||||||
Options contracts written, at value (Note A) | — | 899 | — | — | — | |||||||||||
Payable for securities purchased | 1,219 | 9,279 | 323 | 23,981 | — | |||||||||||
Payable for Fund shares redeemed | 52 | 1,207 | 228 | 10,164 | — | |||||||||||
Payable to investment manager—net (Note B) | 94 | 588 | 237 | 5,988 | 1 | |||||||||||
Payable to administrator—net (Note B) | — | 533 | 120 | 2,483 | — | |||||||||||
Payable for organization costs | — | — | — | — | 34 | |||||||||||
Accrued expenses and other payables | 151 | 205 | 183 | 1,161 | 60 | |||||||||||
Total Liabilities | 1,734 | 12,711 | 1,091 | 43,777 | 95 | |||||||||||
Net Assets at value | $ | 113,734 | $ | 1,502,125 | $ | 535,001 | $ | 11,170,384 | $ | 926 | ||||||
Net Assets consist of: | ||||||||||||||||
Paid-in capital | $ | 123,360 | $ | 1,429,376 | $ | 555,316 | $ | 6,844,790 | $ | 1,018 | ||||||
Undistributed net investment income (loss) | 413 | 483 | 2,770 | 95,413 | (1 | ) | ||||||||||
Distributions in excess of net investment income | — | — | — | — | — | |||||||||||
Accumulated net realized gains (losses) on investments | (2,798 | ) | 12,799 | (22,961 | ) | 254,742 | (11 | ) | ||||||||
Net unrealized appreciation (depreciation) in value of investments | (7,241 | ) | 59,467 | (124 | ) | 3,975,439 | (80 | ) | ||||||||
Net Assets at value | $ | 113,734 | $ | 1,502,125 | $ | 535,001 | $ | 11,170,384 | $ | 926 | ||||||
Net Assets | ||||||||||||||||
Investor Class | $ | — | $ | — | $ | 503,798 | $ | 2,157,656 | $ | — | ||||||
Trust Class | — | — | 17,882 | 3,436,501 | — | |||||||||||
Advisor Class | — | — | 7,766 | 601,250 | — | |||||||||||
Institutional Class | 107,681 | 701,677 | 4,905 | 4,974,977 | 819 | |||||||||||
Class A | 4,876 | 567,036 | 377 | — | 62 | |||||||||||
Class C | 1,146 | 233,220 | 273 | — | 45 | |||||||||||
Class R3 | 31 | 192 | — | — | — |
See Notes to Financial Statements
145
GLOBAL THEMATIC OPPORTUNITIES FUND | GUARDIAN FUND | INTERNATIONAL FUND | INTERNATIONAL INSTITUTIONAL FUND | INTERNATIONAL LARGE CAP FUND | ||||||||||
August 31, 2011 | August 31, 2011 | August 31, 2011 | August 31, 2011 | August 31, 2011 | ||||||||||
$ | 27,918 | $ | 1,101,239 | $ | 301,449 | $ | 341,102 | $ | 186,436 | |||||
— | — | — | — | — | ||||||||||
27,918 | 1,101,239 | 301,449 | 341,102 | 186,436 | ||||||||||
— | — | — | — | — | ||||||||||
— | — | 128 | 229 | 57 | ||||||||||
— | — | — | — | — | ||||||||||
26 | 2,046 | 580 | 564 | 383 | ||||||||||
4 | 8,925 | 2,977 | 3,352 | 2,496 | ||||||||||
923 | 535 | 55 | 657 | 129 | ||||||||||
— | — | — | — | — | ||||||||||
60 | — | — | 79 | — | ||||||||||
42 | 126 | 22 | 16 | 33 | ||||||||||
28,973 | 1,112,871 | 305,211 | 345,999 | 189,534 | ||||||||||
— | — | — | — | — | ||||||||||
— | — | — | — | — | ||||||||||
1,203 | — | 2,669 | 3,019 | 1,841 | ||||||||||
— | 244 | 135 | 22 | 10 | ||||||||||
16 | 465 | 213 | 240 | 86 | ||||||||||
— | 258 | 37 | — | 9 | ||||||||||
34 | — | — | — | — | ||||||||||
64 | 275 | 450 | 121 | 113 | ||||||||||
1,317 | 1,242 | 3,504 | 3,402 | 2,059 | ||||||||||
$ | 27,656 | $ | 1,111,629 | $ | 301,707 | $ | 342,597 | $ | 187,475 | |||||
$ | 28,766 | $ | 964,084 | $ | 447,828 | $ | 494,358 | $ | 230,807 | |||||
(16 | ) | 8,092 | — | — | 1,446 | |||||||||
— | — | (951 | ) | — | — | |||||||||
(84 | ) | (21,657 | ) | (191,564 | ) | (163,941 | ) | (60,358 | ) | |||||
(1,010 | ) | 161,110 | 46,394 | 12,180 | 15,580 | |||||||||
$ | 27,656 | $ | 1,111,629 | $ | 301,707 | $ | 342,597 | $ | 187,475 | |||||
$ | — | $ | 962,565 | $ | 166,859 | $ | — | $ | — | |||||
— | 102,639 | 134,049 | — | 18,599 | ||||||||||
— | 624 | — | — | — | ||||||||||
27,420 | 33,479 | — | 342,597 | 161,485 | ||||||||||
164 | 10,814 | 743 | — | 5,241 | ||||||||||
72 | 1,094 | 56 | — | 2,072 | ||||||||||
— | 414 | — | — | 78 |
146
Statements of Assets and Liabilities (cont'd)
Neuberger Berman Equity Funds (cont'd)
(000's omitted except per share amounts)
EMERGING MARKETS EQUITY FUND | EQUITY INCOME FUND | FOCUS FUND | GENESIS FUND | GLOBAL EQUITY FUND | ||||||||||||
August 31, 2011 | August 31, 2011 | August 31, 2011 | August 31, 2011 | August 31, 2011 | ||||||||||||
Shares Outstanding ($.001 par value; unlimited shares authorized) | ||||||||||||||||
Investor Class | — | — | 26,795 | 62,937 | — | |||||||||||
Trust Class | — | — | 1,306 | 69,952 | — | |||||||||||
Advisor Class | — | — | 825 | 21,152 | — | |||||||||||
Institutional Class | 6,814 | 62,230 | 260 | 104,776 | 90 | |||||||||||
Class A | 310 | 50,459 | 28 | — | 7 | |||||||||||
Class C | 74 | 20,853 | 29 | — | 5 | |||||||||||
Class R3 | 2 | 17 | — | — | — | |||||||||||
Net Asset Value, offering and redemption price per share | ||||||||||||||||
Investor Class | $ | — | $ | — | $ | 18.80 | $ | 34.28 | $ | — | ||||||
Trust Class | — | — | 13.70 | 49.13 | — | |||||||||||
Advisor Class | — | — | 9.41 | 28.43 | — | |||||||||||
Institutional Class | 15.80 | 11.28 | 18.84 | 47.48 | 9.10 | |||||||||||
Class R3 | 15.52 | 11.24 | — | — | — | |||||||||||
Net Asset Value and redemption price per share | ||||||||||||||||
Class A | $ | 15.74 | $ | 11.24 | $ | 13.67 | $ | — | $ | 9.09 | ||||||
Offering Price per share | ||||||||||||||||
Class A‡ | $ | 16.70 | $ | 11.93 | $ | 14.50 | $ | — | $ | 9.64 | ||||||
Net Asset Value and offering price per share | ||||||||||||||||
Class C^ | $ | 15.46 | $ | 11.18 | $ | 9.32 | $ | — | $ | 9.08 | ||||||
*Cost of Investments: | ||||||||||||||||
Unaffiliated issuers | $ | 121,074 | $ | 1,421,130 | $ | 533,140 | $ | 4,176,974 | $ | 1,037 | ||||||
Affiliated issuers | — | — | — | 3,011,018 | — | |||||||||||
Total cost of investments | $ | 121,074 | $ | 1,421,130 | $ | 533,140 | $ | 7,187,992 | $ | 1,037 | ||||||
Total cost of foreign currency | $ | 232 | $ | 1,004 | $ | — | $ | — | $ | — |
‡ 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
147
GLOBAL THEMATIC OPPORTUNITIES FUND | GUARDIAN FUND | INTERNATIONAL FUND | INTERNATIONAL INSTITUTIONAL FUND | INTERNATIONAL LARGE CAP FUND | ||||||||||
August 31, 2011 | August 31, 2011 | August 31, 2011 | August 31, 2011 | August 31, 2011 | ||||||||||
— | 66,448 | 10,002 | — | — | ||||||||||
— | 9,066 | 7,256 | — | 1,990 | ||||||||||
— | 49 | — | — | — | ||||||||||
2,903 | 2,306 | — | 37,239 | 17,254 | ||||||||||
17 | 958 | 40 | — | 564 | ||||||||||
8 | 87 | 3 | — | 226 | ||||||||||
— | 33 | — | — | 8 | ||||||||||
$ | — | $ | 14.49 | $ | 16.68 | $ | — | $ | — | |||||
— | 11.32 | 18.47 | — | 9.35 | ||||||||||
— | 12.77 | — | — | — | ||||||||||
9.44 | 14.52 | — | 9.20 | 9.36 | ||||||||||
— | 12.72 | — | — | 9.27 | ||||||||||
$ | 9.44 | $ | 11.28 | $ | 18.51 | $ | — | $ | 9.30 | |||||
$ | 10.02 | $ | 11.97 | $ | 19.64 | $ | — | $ | 9.87 | |||||
$ | 9.42 | $ | 12.60 | $ | 18.41 | $ | — | $ | 9.17 | |||||
$ | 28,927 | $ | 940,249 | $ | 255,053 | $ | 328,932 | $ | 170,871 | |||||
— | — | — | — | — | ||||||||||
$ | 28,927 | $ | 940,249 | $ | 255,053 | $ | 328,932 | $ | 170,871 | |||||
$ | — | $ | — | $ | 129 | $ | 212 | $ | 57 |
148
Statements of Assets and Liabilities (cont'd)
Neuberger Berman Equity Funds (cont'd)
(000's omitted except per share amounts)
INTRINSIC VALUE FUND | LARGE CAP DISCIPLINED GROWTH FUND | LARGE CAP VALUE FUND | MID CAP GROWTH FUND | MULTI-CAP OPPORTUNITIES FUND | ||||||||||||
August 31, 2011 | August 31, 2011 | August 31, 2011 | August 31, 2011 | August 31, 2011 | ||||||||||||
Assets | ||||||||||||||||
Investments in securities, at value* (Notes A & F)—see Schedule of Investments: | ||||||||||||||||
Unaffiliated issuers | $ | 127,533 | $ | 660,055 | $ | 2,943 | $ | 500,174 | $ | 91,699 | ||||||
Affiliated issuers | — | — | — | — | — | |||||||||||
127,533 | 660,055 | 2,943 | 500,174 | 91,699 | ||||||||||||
Cash | — | — | — | — | — | |||||||||||
Foreign currency | — | — | — | — | — | |||||||||||
Deposits with brokers for open option contracts | — | — | — | — | — | |||||||||||
Dividends and interest receivable | 62 | 1,016 | 7 | 186 | 167 | |||||||||||
Receivable for securities sold | 1,323 | — | 106 | 18,046 | 2,443 | |||||||||||
Receivable for Fund shares sold | 607 | 2,177 | — | 1,364 | 1,874 | |||||||||||
Receivable from broker | — | — | — | — | — | |||||||||||
Receivable from Management—net (Note B) | — | — | 24 | — | — | |||||||||||
Prepaid expenses and other assets | 12 | 37 | 33 | 48 | 8 | |||||||||||
Total Assets | 129,537 | 663,285 | 3,113 | 519,818 | 96,191 | |||||||||||
Liabilities | ||||||||||||||||
Due to custodian | — | — | — | — | — | |||||||||||
Options contracts written, at value (Note A) | — | — | — | — | — | |||||||||||
Payable for securities purchased | 275 | 3,938 | — | 6,329 | 4,590 | |||||||||||
Payable for Fund shares redeemed | 258 | 459 | — | 337 | 35 | |||||||||||
Payable to investment manager—net (Note B) | 90 | 285 | 1 | 232 | 40 | |||||||||||
Payable to administrator—net (Note B) | 11 | 115 | — | 107 | 8 | |||||||||||
Payable for organization costs | — | — | — | — | — | |||||||||||
Accrued expenses and other payables | 55 | 102 | 86 | 158 | 53 | |||||||||||
Total Liabilities | 689 | 4,899 | 87 | 7,163 | 4,726 | |||||||||||
Net Assets at value | $ | 128,848 | $ | 658,386 | $ | 3,026 | $ | 512,655 | $ | 91,465 | ||||||
Net Assets consist of: | ||||||||||||||||
Paid-in capital | $ | 123,442 | $ | 591,934 | $ | 3,880 | $ | 392,178 | $ | 87,299 | ||||||
Undistributed net investment income (loss) | (179 | ) | 1,001 | 20 | — | 204 | ||||||||||
Distributions in excess of net investment income | — | — | — | — | — | |||||||||||
Accumulated net realized gains (losses) on investments | 11,868 | 27,358 | (911 | ) | (23,224 | ) | 2,354 | |||||||||
Net unrealized appreciation (depreciation) in value of investments | (6,283 | ) | 38,093 | 37 | 143,701 | 1,608 | ||||||||||
Net Assets at value | $ | 128,848 | $ | 658,386 | $ | 3,026 | $ | 512,655 | $ | 91,465 | ||||||
Net Assets | ||||||||||||||||
Investor Class | $ | — | $ | 15,512 | $ | — | $ | 335,506 | $ | — | ||||||
Trust Class | — | — | — | 28,105 | — | |||||||||||
Advisor Class | — | — | — | 8,983 | — | |||||||||||
Institutional Class | 114,737 | 565,360 | 2,647 | 113,777 | 91,040 | |||||||||||
Class A | 8,566 | 40,205 | 349 | 25,167 | 196 | |||||||||||
Class C | 5,545 | 37,000 | 30 | 626 | 229 | |||||||||||
Class R3 | — | 309 | — | 491 | — |
See Notes to Financial Statements
149
PARTNERS FUND | REAL ESTATE FUND | REGENCY FUND | SELECT EQUITIES FUND | SMALL CAP GROWTH FUND | |||||||||||
August 31, 2011 | August 31, 2011 | August 31, 2011 | August 31, 2011 | August 31, 2011 | |||||||||||
$ | 2,110,015 | $ | 380,791 | $ | 76,239 | $ | 71,445 | $ | 195,386 | ||||||
— | — | — | — | — | |||||||||||
2,110,015 | 380,791 | 76,239 | 71,445 | 195,386 | |||||||||||
— | — | — | — | — | |||||||||||
— | — | — | — | — | |||||||||||
— | — | — | — | — | |||||||||||
3,457 | 207 | 134 | 109 | 41 | |||||||||||
3,125 | — | — | — | 6,626 | |||||||||||
784 | 1,574 | 25 | 76 | 82 | |||||||||||
— | — | — | — | — | |||||||||||
— | 9 | 2 | — | — | |||||||||||
142 | 26 | 15 | 13 | 32 | |||||||||||
2,117,523 | 382,607 | 76,415 | 71,643 | 202,167 | |||||||||||
— | — | — | — | — | |||||||||||
— | — | — | — | — | |||||||||||
6,143 | 2,998 | 530 | — | 6,492 | |||||||||||
2,078 | 839 | 122 | 80 | 75 | |||||||||||
835 | 246 | — | 33 | 138 | |||||||||||
631 | — | 22 | 16 | 48 | |||||||||||
— | — | — | — | — | |||||||||||
427 | 128 | 74 | 86 | 108 | |||||||||||
10,114 | 4,211 | 748 | 215 | 6,861 | |||||||||||
$ | 2,107,409 | $ | 378,396 | $ | 75,667 | $ | 71,428 | $ | 195,306 | ||||||
$ | 2,141,942 | $ | 346,382 | $ | 84,269 | $ | 62,178 | $ | 241,722 | ||||||
8,175 | — | 295 | 50 | — | |||||||||||
— | — | — | — | — | |||||||||||
(318,397 | ) | (8,073 | ) | (15,716 | ) | 5,361 | (64,920 | ) | |||||||
275,689 | 40,087 | 6,819 | 3,839 | 18,504 | |||||||||||
$ | 2,107,409 | $ | 378,396 | $ | 75,667 | $ | 71,428 | $ | 195,306 | ||||||
$ | 1,171,405 | $ | — | $ | 46,529 | $ | — | $ | 63,566 | ||||||
424,932 | 216,314 | 24,144 | — | 19,285 | |||||||||||
308,917 | — | — | — | 7,901 | |||||||||||
200,620 | 117,138 | 3,483 | 27,326 | 102,964 | |||||||||||
1,436 | 36,303 | 1,227 | 30,934 | 1,174 | |||||||||||
68 | 8,291 | 119 | 13,168 | 328 | |||||||||||
31 | 350 | 165 | — | 88 |
150
INTRINSIC VALUE FUND | LARGE CAP DISCIPLINED GROWTH FUND | LARGE CAP VALUE FUND | MID CAP GROWTH FUND | MULTI-CAP OPPORTUNITIES FUND | ||||||||||||
August 31, 2011 | August 31, 2011 | August 31, 2011 | August 31, 2011 | August 31, 2011 | ||||||||||||
Shares Outstanding ($.001 par value; unlimited shares authorized) | ||||||||||||||||
Investor Class | — | 2,101 | — | 30,948 | — | |||||||||||
Trust Class | — | — | — | 1,705 | — | |||||||||||
Advisor Class | — | — | — | 534 | — | |||||||||||
Institutional Class | 11,178 | 76,265 | 266 | 10,336 | 9,496 | |||||||||||
Class A | 838 | 5,452 | 35 | 1,526 | 21 | |||||||||||
Class C | 547 | 5,099 | 3 | 38 | 24 | |||||||||||
Class R3 | — | 42 | — | 29 | — | |||||||||||
Net Asset Value, offering and redemption price per share | ||||||||||||||||
Investor Class | $ | — | $ | 7.38 | $ | — | $ | 10.84 | $ | — | ||||||
Trust Class | — | — | — | 16.48 | — | |||||||||||
Advisor Class | — | — | — | 16.82 | — | |||||||||||
Institutional Class | 10.26 | 7.41 | 9.95 | 11.01 | 9.59 | |||||||||||
Class R3 | — | 7.34 | — | 16.87 | — | |||||||||||
Net Asset Value and redemption price per share | ||||||||||||||||
Class A | $ | 10.22 | $ | 7.37 | $ | 9.93 | $ | 16.49 | $ | 9.56 | ||||||
Offering Price per share | ||||||||||||||||
Class A‡ | $ | 10.84 | $ | 7.82 | $ | 10.54 | $ | 17.50 | $ | 10.14 | ||||||
Net Asset Value and offering price per share | ||||||||||||||||
Class C^ | $ | 10.14 | $ | 7.26 | $ | 9.89 | $ | 16.68 | $ | 9.47 | ||||||
*Cost of Investments: | ||||||||||||||||
Unaffiliated issuers | $ | 133,816 | $ | 621,962 | $ | 2,906 | $ | 356,473 | $ | 90,091 | ||||||
Affiliated issuers | — | — | — | — | — | |||||||||||
Total cost of investments | $ | 133,816 | $ | 621,962 | $ | 2,906 | $ | 356,473 | $ | 90,091 | ||||||
Total cost of foreign currency | $ | — | $ | — | $ | — | $ | — | $ | — |
‡ 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
151
PARTNERS FUND | REAL ESTATE FUND | REGENCY FUND | SELECT EQUITIES FUND | SMALL CAP GROWTH FUND | ||||||||||
August 31, 2011 | August 31, 2011 | August 31, 2011 | August 31, 2011 | August 31, 2011 | ||||||||||
46,911 | — | 3,282 | — | 3,584 | ||||||||||
22,194 | 18,327 | 1,957 | — | 998 | ||||||||||
18,720 | — | — | — | 617 | ||||||||||
7,990 | 9,901 | 245 | 3,018 | 5,759 | ||||||||||
75 | 3,076 | 99 | 3,426 | 61 | ||||||||||
4 | 703 | 10 | 1,494 | 26 | ||||||||||
2 | 30 | 13 | — | 7 | ||||||||||
$ | 24.97 | $ | — | $ | 14.18 | $ | — | $ | 17.74 | |||||
19.15 | 11.80 | 12.34 | — | 19.32 | ||||||||||
16.50 | — | — | — | 12.81 | ||||||||||
25.11 | 11.83 | 14.22 | 9.05 | 17.88 | ||||||||||
16.41 | 11.80 | 12.32 | — | 12.83 | ||||||||||
$ | 19.06 | $ | 11.80 | $ | 12.34 | $ | 9.03 | $ | 19.36 | |||||
$ | 20.22 | $ | 12.52 | $ | 13.09 | $ | 9.58 | $ | 20.54 | |||||
$ | 16.31 | $ | 11.80 | $ | 12.25 | $ | 8.82 | $ | 12.69 | |||||
$ | 1,834,326 | $ | 340,704 | $ | 69,420 | $ | 67,606 | $ | 176,882 | |||||
— | — | — | — | — | ||||||||||
$ | 1,834,326 | $ | 340,704 | $ | 69,420 | $ | 67,606 | $ | 176,882 | |||||
$ | — | $ | — | $ | — | $ | — | $ | — |
152
Statements of Assets and Liabilities (cont'd)
Neuberger Berman Equity Funds (cont'd)
(000's omitted except per share amounts)
SOCIALLY RESPONSIVE FUND | |||||
August 31, 2011 | |||||
Assets | |||||
Investments in securities, at value* (Notes A & F)—see Schedule of Investments: | |||||
Unaffiliated issuers | $ | 1,646,384 | |||
Affiliated issuers | — | ||||
1,646,384 | |||||
Cash | — | ||||
Foreign currency | — | ||||
Deposits with brokers for open option contracts | — | ||||
Dividends and interest receivable | 2,860 | ||||
Receivable for securities sold | 9,214 | ||||
Receivable for Fund shares sold | 3,294 | ||||
Receivable from broker | — | ||||
Receivable from Management—net (Note B) | — | ||||
Prepaid expenses and other assets | 86 | ||||
Total Assets | 1,661,838 | ||||
Liabilities | |||||
Due to custodian | — | ||||
Options contracts written, at value (Note A) | — | ||||
Payable for securities purchased | 10,986 | ||||
Payable for Fund shares redeemed | 524 | ||||
Payable to investment manager—net (Note B) | 660 | ||||
Payable to administrator—net (Note B) | 431 | ||||
Payable for organization costs | — | ||||
Accrued expenses and other payables | 272 | ||||
Total Liabilities | 12,873 | ||||
Net Assets at value | $ | 1,648,965 | |||
Net Assets consist of: | |||||
Paid-in capital | $ | 1,562,450 | |||
Undistributed net investment income (loss) | 9,638 | ||||
Distributions in excess of net investment income | — | ||||
Accumulated net realized gains (losses) on investments | (97,694 | ) | |||
Net unrealized appreciation (depreciation) in value of investments | 174,571 | ||||
Net Assets at value | $ | 1,648,965 | |||
Net Assets | |||||
Investor Class | $ | 648,057 | |||
Trust Class | 484,674 | ||||
Advisor Class | — | ||||
Institutional Class | 417,679 | ||||
Class A | 75,941 | ||||
Class C | 12,900 | ||||
Class R3 | 9,714 |
See Notes to Financial Statements
153
Statements of Assets and Liabilities (cont'd)
Neuberger Berman Equity Funds (cont'd)
(000's omitted except per share amounts)
SOCIALLY RESPONSIVE FUND | |||||
August 31, 2011 | |||||
Shares Outstanding ($.001 par value; unlimited shares authorized) | |||||
Investor Class | 26,331 | ||||
Trust Class | 28,769 | ||||
Advisor Class | — | ||||
Institutional Class | 16,950 | ||||
Class A | 4,530 | ||||
Class C | 781 | ||||
Class R3 | 582 | ||||
Net Asset Value, offering and redemption price per share | |||||
Investor Class | $ | 24.61 | |||
Trust Class | 16.85 | ||||
Advisor Class | — | ||||
Institutional Class | 24.64 | ||||
Class R3 | 16.68 | ||||
Net Asset Value and redemption price per share | |||||
Class A | $ | 16.77 | |||
Offering Price per share | |||||
Class A‡ | $ | 17.79 | |||
Net Asset Value and offering price per share | |||||
Class C^ | $ | 16.52 | |||
*Cost of Investments: | |||||
Unaffiliated issuers | $ | 1,471,953 | |||
Affiliated issuers | — | ||||
Total cost of investments | $ | 1,471,953 | |||
Total cost of foreign currency | $ | — |
‡ 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
154
Statements of Assets and Liabilities (cont'd)
Neuberger Berman Equity Funds (cont'd)
(000's omitted except per share amounts)
EMERGING MARKETS EQUITY FUND | EQUITY INCOME FUND | FOCUS FUND | GENESIS FUND | GLOBAL EQUITY FUND | ||||||||||||
For the Year Ended August 31, 2011 | For the Year Ended August 31, 2011 | For the Year Ended August 31, 2011 | For the Year Ended August 31, 2011 | For the Period from June 30, 2011 (Commencement of Operations) to August 31, 2011 | ||||||||||||
Investment Income: | ||||||||||||||||
Income (Note A): | ||||||||||||||||
Dividend income—unaffiliated issuers | $ | 1,698 | $ | 31,612 | $ | 9,462 | $ | 128,884 | $ | 2 | ||||||
Dividend income—affiliated issuers (Note F) | — | — | — | 79,274 | — | |||||||||||
Interest income—unaffiliated issuers | 9 | 4,605 | 15 | 852 | — | |||||||||||
Interest income—affiliated issuers (Note F) | — | — | — | 11 | — | |||||||||||
Foreign taxes withheld | (156 | ) | (1,820 | ) | (15 | ) | (1,566 | ) | — | |||||||
Total income | $ | 1,551 | $ | 34,397 | $ | 9,462 | $ | 207,455 | $ | 2 | ||||||
Expenses: | ||||||||||||||||
Investment management fees (Note B) | 691 | 4,729 | 3,110 | 73,891 | 1 | |||||||||||
Administration fees (Note B) | 42 | 558 | 351 | 6,705 | — | |||||||||||
Administration fees (Note B): | ||||||||||||||||
Investor Class | — | — | 1,104 | 4,408 | — | |||||||||||
Trust Class | — | — | 70 | 12,347 | — | |||||||||||
Advisor Class | — | — | 30 | 1,978 | — | |||||||||||
Institutional Class | 55 | 366 | 3 | 4,283 | — | |||||||||||
Class A | 13 | 772 | — | — | — | |||||||||||
Class C | 2 | 275 | — | — | — | |||||||||||
Class R3 | — | — | — | — | — | |||||||||||
Distribution fees (Note B): | ||||||||||||||||
Trust Class | — | — | 21 | — | — | |||||||||||
Advisor Class | — | — | 22 | 1,454 | — | |||||||||||
Class A | 17 | 965 | 1 | — | — | |||||||||||
Class C | 8 | 1,377 | 1 | — | — | |||||||||||
Class R3 | — | — | — | — | — | |||||||||||
Shareholder servicing agent fees: | ||||||||||||||||
Investor Class | — | — | 380 | 1,521 | — | |||||||||||
Trust Class | — | — | 5 | 379 | — | |||||||||||
Advisor Class | — | — | 2 | 149 | — | |||||||||||
Institutional Class | 12 | 47 | 2 | 469 | 2 | |||||||||||
Class A | 4 | 153 | 2 | — | 2 | |||||||||||
Class C | 1 | 48 | 2 | — | 1 | |||||||||||
Class R3 | 1 | 2 | — | — | — | |||||||||||
Organization expense (Note A) | — | — | — | — | 83 | |||||||||||
Audit fees | 56 | 58 | 58 | 58 | 25 | |||||||||||
Custodian fees (Note A) | 671 | 332 | 179 | 1,492 | 14 | |||||||||||
Insurance expense | 2 | 23 | 47 | 810 | — | |||||||||||
Legal fees (Note I for International Fund) | 78 | 79 | 83 | 102 | 13 | |||||||||||
Registration and filing fees | 87 | 151 | 80 | 223 | 10 | |||||||||||
Reimbursement of expenses previously assumed by Management (Note B) | — | 180 | — | — | — | |||||||||||
Shareholder reports | 16 | 133 | 51 | 1,116 | 8 | |||||||||||
Trustees' fees and expenses | 55 | 55 | 55 | 55 | 3 | |||||||||||
Interest expense (Note E) | — | — | — | — | — | |||||||||||
Miscellaneous | 12 | 60 | 62 | 3,283 | 2 | |||||||||||
Total expenses | 1,823 | 10,363 | 5,721 | 114,723 | 164 |
See Notes to Financial Statements
155
GLOBAL THEMATIC OPPORTUNITIES FUND | GUARDIAN FUND | INTERNATIONAL FUND | INTERNATIONAL INSTITUTIONAL FUND | INTERNATIONAL LARGE CAP FUND | ||||||||||
For the Period from June 30, 2011 (Commencement of Operations) to August 31, 2011 | For the Year Ended August 31, 2011 | For the Year Ended August 31, 2011 | For the Year Ended August 31, 2011 | For the Year Ended August 31, 2011 | ||||||||||
$ | 32 | $ | 19,520 | $ | 8,807 | $ | 7,014 | $ | 5,170 | |||||
— | — | — | — | — | ||||||||||
— | 43 | 14 | 12 | 12 | ||||||||||
— | — | — | — | — | ||||||||||
(2 | ) | (303 | ) | (738 | ) | (590 | ) | (476 | ) | |||||
$ | 30 | $ | 19,260 | $ | 8,083 | $ | 6,436 | $ | 4,706 | |||||
23 | 5,854 | 2,927 | 2,204 | 1,059 | ||||||||||
2 | 697 | 208 | 391 | 116 | ||||||||||
— | 2,067 | 376 | — | — | ||||||||||
— | 342 | 540 | — | 88 | ||||||||||
— | 2 | — | — | — | ||||||||||
2 | 19 | — | — | 141 | ||||||||||
— | 11 | — | — | 16 | ||||||||||
— | 1 | — | — | 5 | ||||||||||
— | — | — | — | — | ||||||||||
— | 100 | — | — | 26 | ||||||||||
— | 2 | — | — | — | ||||||||||
— | 13 | — | — | 20 | ||||||||||
— | 7 | 1 | — | 23 | ||||||||||
— | 1 | — | — | — | ||||||||||
— | 831 | 170 | — | — | ||||||||||
— | 13 | 77 | — | 13 | ||||||||||
— | 1 | — | — | — | ||||||||||
2 | 2 | — | 24 | 15 | ||||||||||
2 | 3 | 2 | — | 3 | ||||||||||
1 | 1 | 2 | — | 1 | ||||||||||
— | — | — | — | — | ||||||||||
71 | — | — | — | — | ||||||||||
25 | 58 | 60 | 60 | 58 | ||||||||||
29 | 301 | 366 | 283 | 246 | ||||||||||
— | 86 | 29 | 17 | 10 | ||||||||||
13 | 75 | 692 | 92 | 81 | ||||||||||
10 | 106 | 71 | 22 | 73 | ||||||||||
— | 3 | — | — | — | ||||||||||
8 | 123 | 65 | 25 | 30 | ||||||||||
3 | 55 | 55 | 55 | 55 | ||||||||||
— | — | — | — | — | ||||||||||
2 | 107 | 78 | 27 | 27 | ||||||||||
193 | 10,881 | 5,719 | 3,200 | 2,106 |
156
Statements of Assets and Liabilities (cont'd)
Neuberger Berman Equity Funds (cont'd)
(000's omitted except per share amounts)
EMERGING MARKETS EQUITY FUND | EQUITY INCOME FUND | FOCUS FUND | GENESIS FUND | GLOBAL EQUITY FUND | ||||||||||||
For the Year Ended August 31, 2011 | For the Year Ended August 31, 2011 | For the Year Ended August 31, 2011 | For the Year Ended August 31, 2011 | For the Period from June 30, 2011 (Commencement of Operations) to August 31, 2011 | ||||||||||||
Expenses reimbursed by Management (Note B) | (930 | ) | (2 | ) | (6 | ) | (699 | ) | (162 | ) | ||||||
Investment management fees waived (Note B) | — | — | — | — | — | |||||||||||
Expenses reduced by custodian fee expense offset arrangement (Note A) | — | (1 | ) | — | (2 | ) | — | |||||||||
Total net expenses | 893 | 10,360 | 5,715 | 114,022 | 2 | |||||||||||
Net investment income (loss) | $ | 658 | $ | 24,037 | $ | 3,747 | $ | 93,433 | $ | — | ||||||
Realized and Unrealized Gain (Loss) on Investments (Note A): | ||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||
Sales of investment securities of unaffiliated issuers | (2,463 | ) | 14,645 | 67,908 | 530,955 | (11 | ) | |||||||||
Sales of investment securities of affiliated issuers | — | — | — | 230,351 | — | |||||||||||
Foreign currency | (212 | ) | (155 | ) | 1 | (140 | ) | (1 | ) | |||||||
Options written | — | 501 | — | — | — | |||||||||||
Change in net unrealized appreciation (depreciation) in value of: | ||||||||||||||||
Unaffiliated investment securities | (8,971 | ) | 50,773 | 19,464 | 1,056,670 | (80 | ) | |||||||||
Affiliated investment securities | — | — | — | 728,073 | — | |||||||||||
Foreign currency | — | 4 | — | — | — | |||||||||||
Options written | — | (568) | — | — | — | |||||||||||
Net gain (loss) on investments | (11,646 | ) | 65,200 | 87,373 | 2,545,909 | (92 | ) | |||||||||
Net increase (decrease) in net assets resulting from operations | $ | (10,988 | ) | $ | 89,237 | $ | 91,120 | $ | 2,639,342 | $ | (92 | ) |
See Notes to Financial Statements
157
GLOBAL THEMATIC OPPORTUNITIES FUND | GUARDIAN FUND | INTERNATIONAL FUND | INTERNATIONAL INSTITUTIONAL FUND | INTERNATIONAL LARGE CAP FUND | ||||||||||
For the Period from June 30, 2011 (Commencement of Operations) to August 31, 2011 | For the Year Ended August 31, 2011 | For the Year Ended August 31, 2011 | For the Year Ended August 31, 2011 | For the Year Ended August 31, 2011 | ||||||||||
(159 | ) | (3 | ) | (295 | ) | (1,106 | ) | (226 | ) | |||||
— | — | — | — | — | ||||||||||
— | — | — | — | — | ||||||||||
34 | 10,878 | 5,424 | 2,094 | 1,880 | ||||||||||
$ | (4 | ) | $ | 8,382 | $ | 2,659 | $ | 4,342 | $ | 2,826 | ||||
(84 | ) | 103,471 | 40,623 | 9,187 | 10,415 | |||||||||
— | — | — | — | — | ||||||||||
(12 | ) | (283 | ) | (469 | ) | (504 | ) | (222 | ) | |||||
— | — | — | — | — | ||||||||||
(1,009 | ) | 91,106 | 10,376 | 1,380 | 8,797 | |||||||||
— | — | — | — | — | ||||||||||
(1) | 118 | (15 | ) | (4 | ) | 5 | ||||||||
— | — | — | — | — | ||||||||||
(1,106 | ) | 194,412 | 50,515 | 10,059 | 18,995 | |||||||||
$ | (1,110 | ) | $ | 202,794 | $ | 53,174 | $ | 14,401 | $ | 21,821 |
See Notes to Financial Statements
158
Statements of Assets and Liabilities (cont'd)
Neuberger Berman Equity Funds (cont'd)
(000's omitted except per share amounts)
INTRINSIC VALUE FUND | LARGE CAP DISCIPLINED GROWTH FUND | LARGE CAP VALUE FUND | MID CAP GROWTH FUND | MULTI-CAP OPPORTUNITIES FUND | ||||||||||||
For the Year Ended August 31, 2011 | For the Year Ended August 31, 2011 | For the Year Ended August 31, 2011 | For the Year Ended August 31, 2011 | For the Year Ended August 31, 2011 | ||||||||||||
Investment Income: | ||||||||||||||||
Income (Note A): | ||||||||||||||||
Dividend income—unaffiliated issuers | $ | 773 | $ | 6,306 | $ | 32 | $ | 3,140 | $ | 1,012 | ||||||
Dividend income—affiliated issuers (Note F) | — | — | — | — | — | |||||||||||
Interest income—unaffiliated issuers | 6 | 31 | — | 41 | 4 | |||||||||||
Interest income—affiliated issuers (Note F) | — | — | — | — | — | |||||||||||
Foreign taxes withheld | — | (20 | ) | — | (9 | ) | (8 | ) | ||||||||
Total income | $ | 779 | $ | 6,317 | $ | 32 | $ | 3,172 | $ | 1,008 | ||||||
Expenses: | ||||||||||||||||
Investment management fees (Note B) | 1,013 | 3,239 | 8 | 3,042 | 367 | |||||||||||
Administration fees (Note B) | 72 | 366 | 1 | 343 | 37 | |||||||||||
Administration fees (Note B): | ||||||||||||||||
Investor Class | — | 28 | — | 696 | — | |||||||||||
Trust Class | — | — | — | 96 | — | |||||||||||
Advisor Class | — | — | — | 25 | — | |||||||||||
Institutional Class | 101 | 463 | 1 | 149 | 55 | |||||||||||
Class A | 9 | 87 | — | 41 | 1 | |||||||||||
Class C | 4 | 77 | — | 1 | — | |||||||||||
Class R3 | — | 1 | — | 1 | — | |||||||||||
Distribution fees (Note B): | ||||||||||||||||
Trust Class | — | — | — | — | — | |||||||||||
Advisor Class | — | — | — | 19 | — | |||||||||||
Class A | 12 | 108 | — | 52 | 1 | |||||||||||
Class C | 22 | 386 | — | 5 | 2 | |||||||||||
Class R3 | — | 1 | — | 1 | — | |||||||||||
Shareholder servicing agent fees: | ||||||||||||||||
Investor Class | — | 27 | — | 379 | — | |||||||||||
Trust Class | — | — | — | 6 | — | |||||||||||
Advisor Class | — | — | — | 3 | — | |||||||||||
Institutional Class | 11 | 58 | — | 17 | 14 | |||||||||||
Class A | 3 | 20 | 2 | 6 | — | |||||||||||
Class C | 1 | 8 | 2 | 1 | — | |||||||||||
Class R3 | — | — | — | — | — | |||||||||||
Organization expense (Note A) | — | — | — | — | — | |||||||||||
Audit fees | 23 | 23 | 58 | 23 | 23 | |||||||||||
Custodian fees (Note A) | 72 | 190 | 20 | 196 | 45 | |||||||||||
Insurance expense | 4 | 32 | — | 38 | 4 | |||||||||||
Legal fees | 68 | 82 | 90 | 73 | 71 | |||||||||||
Registration and filing fees | 49 | 128 | 30 | 101 | 43 | |||||||||||
Reimbursement of expenses previously assumed by Management (Note B) | — | 4 | — | 12 | — | |||||||||||
Shareholder reports | 17 | 81 | 14 | 110 | 19 | |||||||||||
Trustees' fees and expenses | 55 | 55 | 55 | 55 | 55 | |||||||||||
Interest expense (Note E) | — | — | — | — | 4 | |||||||||||
Miscellaneous | 10 | 51 | 2 | 60 | 7 | |||||||||||
Total expenses | 1,546 | 5,515 | 283 | 5,551 | 748 |
See Notes to Financial Statements
159
PARTNERS FUND | REAL ESTATE FUND | REGENCY FUND | SELECT EQUITIES FUND | SMALL CAP GROWTH FUND | ||||||||||
For the Year Ended August 31, 2011 | For the Year Ended August 31, 2011 | For the Year Ended August 31, 2011 | For the Year Ended August 31, 2011 | For the Year Ended August 31, 2011 | ||||||||||
$ | 32,728 | $ | 4,767 | $ | 1,621 | $ | 1,020 | $ | 602 | |||||
— | — | — | — | — | ||||||||||
123 | 15 | 6 | 12 | 5 | ||||||||||
— | — | — | — | — | ||||||||||
(875 | ) | (52 | ) | (9 | ) | (3 | ) | (8 | ) | |||||
$ | 31,976 | $ | 4,730 | $ | 1,618 | $ | 1,029 | $ | 599 | |||||
11,724 | 2,215 | 558 | 397 | 1,870 | ||||||||||
1,514 | 166 | 61 | 43 | 132 | ||||||||||
2,738 | — | 114 | — | 147 | ||||||||||
1,943 | 641 | 140 | — | 80 | ||||||||||
1,307 | — | — | — | 36 | ||||||||||
178 | 61 | 2 | 23 | 100 | ||||||||||
1 | 34 | 1 | 66 | 3 | ||||||||||
— | 7 | — | 27 | — | ||||||||||
— | — | — | — | — | ||||||||||
571 | 189 | 41 | — | 23 | ||||||||||
961 | — | — | — | 26 | ||||||||||
2 | 42 | 1 | 83 | 4 | ||||||||||
1 | 36 | 1 | 134 | 2 | ||||||||||
— | 1 | — | — | 1 | ||||||||||
860 | — | 53 | — | 96 | ||||||||||
62 | 77 | 27 | — | 15 | ||||||||||
55 | — | — | — | 5 | ||||||||||
18 | 9 | 1 | 4 | 14 | ||||||||||
2 | 17 | 2 | 22 | 3 | ||||||||||
2 | 4 | 2 | 5 | — | ||||||||||
2 | 2 | 2 | — | — | ||||||||||
— | — | — | — | — | ||||||||||
58 | 60 | 23 | 56 | 23 | ||||||||||
454 | 121 | 94 | 49 | 142 | ||||||||||
225 | 11 | 12 | 6 | 20 | ||||||||||
77 | 82 | 73 | 75 | 74 | ||||||||||
141 | 107 | 100 | 51 | 108 | ||||||||||
— | — | — | — | — | ||||||||||
334 | 92 | 48 | 23 | 101 | ||||||||||
55 | 55 | 55 | 55 | 55 | ||||||||||
— | — | — | — | — | ||||||||||
244 | 29 | 30 | 11 | 30 | ||||||||||
23,529 | 4,058 | 1,441 | 1,130 | 3,110 |
160
Statements of Assets and Liabilities (cont'd)
Neuberger Berman Equity Funds (cont'd)
(000's omitted except per share amounts)
INTRINSIC VALUE FUND | LARGE CAP DISCIPLINED GROWTH FUND | LARGE CAP VALUE FUND | MID CAP GROWTH FUND | MULTI-CAP OPPORTUNITIES FUND | ||||||||||||
For the Year Ended August 31, 2011 | For the Year Ended August 31, 2011 | For the Year Ended August 31, 2011 | For the Year Ended August 31, 2011 | For the Year Ended August 31, 2011 | ||||||||||||
Expenses reimbursed by Management (Note B) | (311 | ) | (293 | ) | (271 | ) | (112 | ) | (128 | ) | ||||||
Investment management fees waived (Note B) | — | — | — | — | — | |||||||||||
Expenses reduced by custodian fee expense offset arrangement (Note A) | — | — | — | — | — | |||||||||||
Total net expenses | 1,235 | 5,222 | 12 | 5,439 | 620 | |||||||||||
Net investment income (loss) | $ | (456 | ) | $ | 1,095 | $ | 20 | $ | (2,267 | ) | $ | 388 | ||||
Realized and Unrealized Gain (Loss) on Investments (Note A): | ||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||
Sales of investment securities of unaffiliated issuers | 14,497 | 38,093 | 239 | 65,527 | 3,155 | |||||||||||
Sales of investment securities of affiliated issuers | — | — | — | — | — | |||||||||||
Foreign currency | — | 1 | — | — | — | |||||||||||
Options written | — | — | — | — | — | |||||||||||
Change in net unrealized appreciation (depreciation) in value of: | ||||||||||||||||
Unaffiliated investment securities | (11,232 | ) | 41,586 | 8 | 60,375 | 5,545 | ||||||||||
Affiliated investment securities | — | — | — | — | — | |||||||||||
Foreign currency | — | — | — | — | — | |||||||||||
Options written | — | — | — | — | — | |||||||||||
Net gain (loss) on investments | 3,265 | 79,680 | 247 | 125,902 | 8,700 | |||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 2,809 | $ | 80,775 | $ | 267 | $ | 123,635 | $ | 9,088 |
See Notes to Financial Statements
161
PARTNERS FUND | REAL ESTATE FUND | REGENCY FUND | SELECT EQUITIES FUND | SMALL CAP GROWTH FUND | ||||||||||
For the Year Ended August 31, 2011 | For the Year Ended August 31, 2011 | For the Year Ended August 31, 2011 | For the Year Ended August 31, 2011 | For the Year Ended August 31, 2011 | ||||||||||
(5 | ) | (1,338 | ) | (83 | ) | (277 | ) | (752 | ) | |||||
— | — | (112) | — | — | ||||||||||
— | — | — | — | — | ||||||||||
23,524 | 2,720 | 1,246 | 853 | 2,358 | ||||||||||
$ | 8,452 | $ | 2,010 | $ | 372 | $ | 176 | $ | (1,759) | |||||
260,260 | 14,550 | 12,321 | 6,095 | 51,081 | ||||||||||
— | — | — | — | — | ||||||||||
(24 | ) | — | — | — | — | |||||||||
— | — | — | — | — | ||||||||||
65,283 | 11,482 | 7,548 | 4,810 | 7,233 | ||||||||||
— | — | — | — | — | ||||||||||
4 | — | — | — | — | ||||||||||
— | — | — | — | — | ||||||||||
325,523 | 26,032 | 19,869 | 10,905 | 58,314 | ||||||||||
$ | 333,975 | $ | 28,042 | $ | 20,241 | $ | 11,081 | $ | 56,555 |
162
SOCIALLY RESPONSIVE FUND | ||||
For the Year Ended August 31, 2011 | ||||
Investment Income: | ||||
Income (Note A): | ||||
Dividend income—unaffiliated issuers | $ | 24,837 | ||
Dividend income—affiliated issuers (Note F) | — | |||
Interest income—unaffiliated issuers | 37 | |||
Interest income—affiliated issuers (Note F) | — | |||
Foreign taxes withheld | (494 | ) | ||
Total income | $ | 24,380 | ||
Expenses: | ||||
Investment management fees (Note B) | 7,538 | |||
Administration fees (Note B) | 925 | |||
Administration fees (Note B): | ||||
Investor Class | 1,421 | |||
Trust Class | 1,636 | |||
Advisor Class | — | |||
Institutional Class | 267 | |||
Class A | 84 | |||
Class C | 17 | |||
Class R3 | 7 | |||
Distribution fees (Note B): | ||||
Trust Class | 481 | |||
Advisor Class | — | |||
Class A | 106 | |||
Class C | 84 | |||
Class R3 | 17 | |||
Shareholder servicing agent fees: | ||||
Investor Class | 543 | |||
Trust Class | 76 | |||
Advisor Class | — | |||
Institutional Class | 29 | |||
Class A | 28 | |||
Class C | 6 | |||
Class R3 | 1 | |||
Organization expense (Note A) | — | |||
Audit fees | 23 | |||
Custodian fees (Note A) | 374 | |||
Insurance expense | 99 | |||
Legal fees | 82 | |||
Registration and filing fees | 123 | |||
Reimbursement of expenses previously assumed by Management (Note B) | 48 | |||
Shareholder reports | 212 | |||
Trustees' fees and expenses | 55 | |||
Interest expense (Note E) | — | |||
Miscellaneous | 166 | |||
Total expenses | 14,448 |
See Notes to Financial Statements
163
SOCIALLY RESPONSIVE FUND | ||||
For the Year Ended August 31, 2011 | ||||
Expenses reimbursed by Management (Note B) | (13 | ) | ||
Investment management fees waived (Note B) | — | |||
Expenses reduced by custodian fee expense offset arrangement (Note A) | — | |||
Total net expenses | 14,435 | |||
Net investment income (loss) | $ | 9,945 | ||
Realized and Unrealized Gain (Loss) on Investments (Note A): | ||||
Net realized gain (loss) on: | ||||
Sales of investment securities of unaffiliated issuers | 77,391 | |||
Sales of investment securities of affiliated issuers | — | |||
Foreign currency | (304 | ) | ||
Options written | — | |||
Change in net unrealized appreciation (depreciation) in value of: | ||||
Unaffiliated investment securities | 112,828 | |||
Affiliated investment securities | — | |||
Foreign currency | 137 | |||
Options written | — | |||
Net gain (loss) on investments | 190,052 | |||
Net increase (decrease) in net assets resulting from operations | $ | 199,997 |
See Notes to Financial Statements
164
Statements of Changes in Net Assets
Neuberger Berman Equity Funds
(000's omitted)
EMERGING MARKETS EQUITY FUND | EQUITY INCOME FUND | ||||||||||||
Year Ended August 31, 2011 | Year Ended August 31, 2010 | Year Ended August 31, 2011 | Year Ended August 31, 2010 | ||||||||||
Increase (Decrease) in Net Assets: | |||||||||||||
From Operations (Note A): | |||||||||||||
Net investment income (loss) | $ | 658 | $ | 66 | $ | 24,037 | $ | 5,988 | |||||
Net realized gain (loss) on investments | (2,675 | ) | 882 | 14,991 | 6,131 | ||||||||
Change in net unrealized appreciation (depreciation) of investments | (8,971 | ) | 362 | 50,209 | 6,947 | ||||||||
Net increase (decrease) in net assets resulting from operations | (10,988 | ) | 1,310 | 89,237 | 19,066 | ||||||||
Distributions to Shareholders From (Note A): | |||||||||||||
Net investment income: | |||||||||||||
Investor Class | — | — | — | — | |||||||||
Trust Class | — | — | — | — | |||||||||
Advisor Class | — | — | — | — | |||||||||
Institutional Class | (41 | ) | (17 | ) | (12,641 | ) | (1,568 | ) | |||||
Class A | — | (6 | ) | (12,923 | ) | (2,468 | ) | ||||||
Class C | — | — | (3,415 | ) | (389 | ) | |||||||
Class R3 | — | — | (1 | ) | (0 | ) | |||||||
Net realized gain on investments: | |||||||||||||
Institutional Class | (569 | ) | (304 | ) | — | — | |||||||
Class A | (180 | ) | (131 | ) | — | — | |||||||
Class C | (16 | ) | (19 | ) | — | — | |||||||
Class R3 | (1 | ) | — | — | — | ||||||||
Tax Return of Capital: | |||||||||||||
Investor Class | — | — | — | — | |||||||||
Trust Class | — | — | — | — | |||||||||
Institutional Class | — | — | — | — | |||||||||
Class A | — | — | — | — | |||||||||
Class C | — | — | — | — | |||||||||
Class R3 | — | — | — | — | |||||||||
Total distributions to shareholders | (807 | ) | (477 | ) | (28,980 | ) | (4,425 | ) | |||||
From Fund Share Transactions (Note D): | |||||||||||||
Proceeds from shares sold: | |||||||||||||
Investor Class | — | — | — | — | |||||||||
Trust Class | — | — | — | — | |||||||||
Advisor Class | — | — | — | — | |||||||||
Institutional Class | 127,870 | 4,202 | 648,610 | 89,935 | |||||||||
Class A | 7,005 | 4,844 | 515,353 | 141,691 | |||||||||
Class C | 1,223 | 118 | 191,097 | 40,417 | |||||||||
Class R3 | — | 30 | 163 | 30 |
See Notes to Financial Statements
165
FOCUS FUND | GENESIS FUND | GLOBAL EQUITY FUND | ||||||||||||
Year Ended August 31, 2011 | Year Ended August 31, 2010 | Year Ended August 31, 2011 | Year Ended August 31, 2010 | Period from June 30, 2011 (Commencement of Operations) to August 31, 2011 | ||||||||||
$ | 3,747 | $ | 3,432 | $ | 93,433 | $ | (5,541 | ) | $ | — | ||||
67,909 | 48,589 | 761,166 | 327,808 | (12) | ||||||||||
19,464 | (61,312) | 1,784,743 | 405,880 | (80) | ||||||||||
91,120 | (9,291) | 2,639,342 | 728,147 | (92) | ||||||||||
(2,980 | ) | (4,238 | ) | — | — | — | ||||||||
(108 | ) | (186 | ) | — | — | — | ||||||||
(57 | ) | (102 | ) | — | — | — | ||||||||
(0 | ) | — | — | — | — | |||||||||
(0 | ) | — | — | — | — | |||||||||
(0 | ) | — | — | — | — | |||||||||
— | — | — | — | — | ||||||||||
— | — | — | — | — | ||||||||||
— | — | — | — | — | ||||||||||
— | — | — | — | — | ||||||||||
— | — | — | — | — | ||||||||||
— | — | — | — | — | ||||||||||
— | — | — | — | — | ||||||||||
— | — | — | — | — | ||||||||||
— | — | — | — | — | ||||||||||
— | — | — | — | — | ||||||||||
— | — | — | — | — | ||||||||||
(3,145 | ) | (4,526 | ) | — | — | — | ||||||||
4,465 | 7,024 | 411,792 | 368,995 | — | ||||||||||
1,882 | 3,571 | 609,606 | 545,267 | — | ||||||||||
1,052 | 1,328 | 218,796 | 160,779 | — | ||||||||||
5,659 | 30 | 1,414,762 | 995,196 | 900 | ||||||||||
489 | 30 | — | — | 68 | ||||||||||
263 | 30 | — | — | 50 | ||||||||||
— | — | — | — | — |
166
Statements of Changes in Net Assets (cont'd)
Neuberger Berman Equity Funds (cont'd)
(000's omitted)
EMERGING MARKETS EQUITY FUND | EQUITY INCOME FUND | ||||||||||||
Year Ended August 31, 2011 | Year Ended August 31, 2010 | Year Ended August 31, 2011 | Year Ended August 31, 2010 | ||||||||||
Proceeds from reinvestment of dividends and distributions: | |||||||||||||
Investor Class | — | — | — | — | |||||||||
Trust Class | — | — | — | — | |||||||||
Advisor Class | — | — | — | — | |||||||||
Institutional Class | 557 | 321 | 8,064 | 665 | |||||||||
Class A | 175 | 131 | 11,201 | 1,997 | |||||||||
Class C | 4 | 19 | 1,543 | 139 | |||||||||
Class R3 | 1 | — | 1 | — | |||||||||
Proceeds from conversion of Trust Class shares (Note G): | |||||||||||||
Trust Class | — | — | — | — | |||||||||
Institutional Class | — | �� | — | — | — | ||||||||
Payments for shares redeemed: | |||||||||||||
Investor Class | — | — | — | — | |||||||||
Trust Class | — | — | — | — | |||||||||
Advisor Class | — | — | — | — | |||||||||
Institutional Class | (18,015 | ) | (166 | ) | (78,082 | ) | (13,484 | ) | |||||
Class A | (7,828 | ) | (1,588 | ) | (166,272 | ) | (18,707 | ) | |||||
Class C | (92 | ) | (231 | ) | (11,301 | ) | (2,005 | ) | |||||
Class R3 | — | — | — | — | |||||||||
Redemption fees retained: | |||||||||||||
Investor Class | — | — | — | — | |||||||||
Trust Class | — | — | — | — | |||||||||
Institutional Class | 8 | 1 | — | — | |||||||||
Class A | 1 | 1 | — | — | |||||||||
Class C | — | — | — | — | |||||||||
Class R3 | — | — | — | — | |||||||||
Proceeds from shares issued in connection with the Reorganization (Note G) | |||||||||||||
Institutional Class | — | — | — | — | |||||||||
Net increase (decrease) from Fund share transactions | 110,909 | 7,682 | 1,120,377 | 240,678 | |||||||||
Voluntary Contribution from Management (Note B) | — | — | — | — | |||||||||
Net Increase (Decrease) in Net Assets | 99,114 | 8,515 | 1,180,634 | 255,319 | |||||||||
Net Assets: | |||||||||||||
Beginning of year | 14,620 | 6,105 | 321,491 | 66,172 | |||||||||
End of year | $ | 113,734 | $ | 14,620 | $ | 1,502,125 | $ | 321,491 | |||||
Undistributed net investment income (loss) at end of year | $ | 413 | $ | — | $ | 483 | $ | 5,312 | |||||
Distributions in excess of net investment income at end of year | $ | — | $ | (22 | ) | $ | — | $ | — |
See Notes to Financial Statements
167
FOCUS FUND | GENESIS FUND | GLOBAL EQUITY FUND | ||||||||||||
Year Ended August 31, 2011 | Year Ended August 31, 2010 | Year Ended August 31, 2011 | Year Ended August 31, 2010 | Period from June 30, 2011 (Commencement of Operations) to August 31, 2011 | ||||||||||
2,599 | 3,709 | — | — | — | ||||||||||
101 | 182 | — | �� | — | — | |||||||||
56 | 100 | — | — | — | ||||||||||
— | — | — | — | — | ||||||||||
— | — | — | — | — | ||||||||||
— | — | — | — | — | ||||||||||
— | — | — | — | — | ||||||||||
— | — | — | — | — | ||||||||||
— | — | — | — | — | ||||||||||
(65,924 | ) | (59,627 | ) | (557,618 | ) | (357,889 | ) | — | ||||||
(6,321 | ) | (8,171 | ) | (1,124,133 | ) | (1,002,217 | ) | — | ||||||
(2,423 | ) | (3,737 | ) | (186,185 | ) | (148,456 | ) | — | ||||||
(313 | ) | — | (1,099,210 | ) | (998,452 | ) | — | |||||||
(106 | ) | — | — | — | — | |||||||||
— | — | — | — | — | ||||||||||
— | — | — | — | — | ||||||||||
— | — | — | — | — | ||||||||||
— | — | — | — | — | ||||||||||
— | — | — | — | — | ||||||||||
— | — | — | — | — | ||||||||||
— | — | — | — | — | ||||||||||
— | — | — | — | — | ||||||||||
— | — | — | — | — | ||||||||||
(58,521 | ) | (55,531 | ) | (312,190 | ) | (436,777 | ) | 1,018 | ||||||
— | — | — | — | — | ||||||||||
29,454 | (69,348 | ) | 2,327,152 | 291,370 | 926 | |||||||||
505,547 | 574,895 | 8,843,232 | 8,551,862 | — | ||||||||||
$ | 535,001 | $ | 505,547 | $ | 11,170,384 | $ | 8,843,232 | $ | 926 | |||||
$ | 2,770 | $ | 3,144 | $ | 95,413 | $ | (16 | ) | $ | (1 | ) | |||
$ | — | $ | — | $ | — | $ | — | $ | — |
168
Statements of Changes in Net Assets (cont'd)
Neuberger Berman Equity Funds
(000's omitted)
GLOBAL THEMATIC OPPORTUNITIES FUND | GUARDIAN FUND | INTERNATIONAL FUND | |||||||||||||
Period from June 30, 2011 (Commencement of Operations) to August 31, 2011 | Year Ended August 31, 2011 | Year Ended August 31, 2010 | Year Ended August 31, 2011 | Year Ended August 31, 2010 | |||||||||||
Increase (Decrease) in Net Assets: | |||||||||||||||
From Operations (Note A): | |||||||||||||||
Net investment income (loss) | $ | (4 | ) | $ | 8,382 | $ | 3,929 | $ | 2,659 | $ | 3,359 | ||||
Net realized gain (loss) on investments | (96 | ) | 103,188 | 5,662 | 40,154 | 22,039 | |||||||||
Change in net unrealized appreciation (depreciation) of investments | (1,010 | ) | 91,224 | 68,334 | 10,361 | 8,250 | |||||||||
Net increase (decrease) in net assets resulting from operations | (1,110 | ) | 202,794 | 77,925 | 53,174 | 33,648 | |||||||||
Distributions to Shareholders From (Note A): | |||||||||||||||
Net investment income: | |||||||||||||||
Investor Class | — | (3,466 | ) | (4,777 | ) | (2,185 | ) | (2,021 | ) | ||||||
Trust Class | — | (310 | ) | (413 | ) | (1,529 | ) | (1,558 | ) | ||||||
Advisor Class | — | — | (1 | ) | — | — | |||||||||
Institutional Class | — | (36 | ) | (1 | ) | — | — | ||||||||
Class A | — | (22 | ) | (9 | ) | — | — | ||||||||
Class C | — | (1 | ) | (0 | ) | — | — | ||||||||
Class R3 | — | (1 | ) | (0 | ) | — | — | ||||||||
Net realized gain on investments: | |||||||||||||||
Institutional Class | — | — | — | — | — | ||||||||||
Class A | — | — | — | — | — | ||||||||||
Class C | — | — | — | — | — | ||||||||||
Class R3 | — | — | — | — | — | ||||||||||
Tax Return of Capital: | |||||||||||||||
Investor Class | — | — | — | — | (776 | ) | |||||||||
Trust Class | — | — | — | — | (661 | ) | |||||||||
Institutional Class | — | — | — | — | — | ||||||||||
Class A | — | — | — | — | — | ||||||||||
Class C | — | �� | — | — | — | — | |||||||||
Class R3 | — | — | — | — | — | ||||||||||
Total distributions to shareholders | — | (3,836 | ) | (5,201 | ) | (3,714 | ) | (5,016 | ) | ||||||
From Fund Share Transactions (Note D): | |||||||||||||||
Proceeds from shares sold: | |||||||||||||||
Investor Class | — | 32,695 | 29,249 | 10,846 | 7,515 | ||||||||||
Trust Class | — | 33,092 | 18,549 | 18,131 | 18,054 | ||||||||||
Advisor Class | — | 117 | 95 | — | — | ||||||||||
Institutional Class | 29,484 | 36,674 | 4,645 | — | — | ||||||||||
Class A | 171 | 10,427 | 5,973 | 830 | — | ||||||||||
Class C | 77 | 800 | 395 | 57 | — | ||||||||||
Class R3 | — | 473 | — | — | — |
See Notes to Financial Statements
169
INTERNATIONAL INSTITUTIONAL FUND | INTERNATIONAL LARGE CAP FUND | ||||||||||
Year Ended August 31, 2011 | Year Ended August 31, 2010 | Year Ended August 31, 2011 | Year Ended August 31, 2010 | ||||||||
$ | 4,342 | $ | 3,264 | $ | 2,826 | $ | 1,646 | ||||
8,683 | 8,663 | 10,193 | 1,203 | ||||||||
1,376 | 5,823 | 8,802 | 1,227 | ||||||||
14,401 | 17,750 | 21,821 | 4,076 | ||||||||
— | — | — | — | ||||||||
— | — | (161 | ) | (333 | ) | ||||||
— | — | — | — | ||||||||
(3,471 | ) | (3,179 | ) | (1,114 | ) | (1,013 | ) | ||||
— | — | (62 | ) | (72 | ) | ||||||
— | — | (8 | ) | (6 | ) | ||||||
— | — | (0 | ) | (1 | ) | ||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
(3,471 | ) | (3,179 | ) | (1,345 | ) | (1,425 | ) | ||||
— | — | — | — | ||||||||
— | — | 5,989 | 4,570 | ||||||||
— | — | — | — | ||||||||
180,832 | 19,694 | 50,530 | 64,193 | ||||||||
— | — | 3,705 | 6,921 | ||||||||
— | — | 1,030 | 1,241 | ||||||||
— | — | 35 | 3 |
170
Statements of Changes in Net Assets (cont'd)
Neuberger Berman Equity Funds (cont'd)
(000's omitted)
GLOBAL THEMATIC OPPORTUNITIES FUND | GUARDIAN FUND | INTERNATIONAL FUND | ||||||||||||||
Period from June 30, 2011 (Commencement of Operations) to August 31, 2011 | Year Ended August 31, 2011 | Year Ended August 31, 2010 | Year Ended August 31, 2011 | Year Ended August 31, 2010 | ||||||||||||
Proceeds from reinvestment of dividends and distributions: | ||||||||||||||||
Investor Class | — | 3,241 | 4,474 | 1,940 | 2,383 | |||||||||||
Trust Class | — | 297 | 412 | 1,448 | 2,041 | |||||||||||
Advisor Class | — | — | — | — | — | |||||||||||
Institutional Class | — | 31 | — | — | — | |||||||||||
Class A | — | 22 | 9 | — | — | |||||||||||
Class C | — | 1 | — | — | — | |||||||||||
Class R3 | — | — | — | — | — | |||||||||||
Proceeds from conversion of Trust Class shares (Note G): | ||||||||||||||||
Trust Class | — | — | — | — | — | |||||||||||
Institutional Class | — | — | — | — | — | |||||||||||
Payments for shares redeemed: | ||||||||||||||||
Investor Class | — | (127,037 | ) | (107,774 | ) | (45,429 | ) | (60,498 | ) | |||||||
Trust Class | — | (24,645 | ) | (16,152 | ) | (73,573 | ) | (73,098 | ) | |||||||
Advisor Class | — | (109 | ) | (170 | ) | — | — | |||||||||
Institutional Class | (966 | ) | (6,573 | ) | (326 | ) | — | — | ||||||||
Class A | — | (3,569 | ) | (2,798 | ) | (26 | ) | — | ||||||||
Class C | — | (110 | ) | (64 | ) | — | — | |||||||||
Class R3 | — | (115 | ) | — | — | — | ||||||||||
Redemption fees retained: | ||||||||||||||||
Investor Class | — | — | — | 2 | 6 | |||||||||||
Trust Class | — | — | — | 1 | 6 | |||||||||||
Institutional Class | — | — | — | — | — | |||||||||||
Class A | — | — | — | — | — | |||||||||||
Class C | — | — | — | — | — | |||||||||||
Class R3 | — | — | — | — | — | |||||||||||
Proceeds from shares issued in connection with the Reorganization (Note G) | ||||||||||||||||
Institutional Class | — | — | — | — | — | |||||||||||
Net increase (decrease) from Fund share transactions | 28,766 | (44,288 | ) | (63,483 | ) | (85,773 | ) | (103,591 | ) | |||||||
Voluntary Contribution from Management (Note B) | — | — | — | 2,721 | — | |||||||||||
Net Increase (Decrease) in Net Assets | 27,656 | 154,670 | 9,241 | (33,592 | ) | (74,959 | ) | |||||||||
Net Assets: | ||||||||||||||||
Beginning of year | — | 956,959 | 947,718 | 335,299 | 410,258 | |||||||||||
End of year | $ | 27,656 | $ | 1,111,629 | $ | 956,959 | $ | 301,707 | $ | 335,299 | ||||||
Undistributed net investment income (loss) at end of year | $ | (16 | ) | $ | 8,092 | $ | 3,829 | $ | — | $ | — | |||||
Distributions in excess of net investment income at end of year | $ | — | $ | — | $ | — | $ | (951 | ) | $ | (1,123 | ) |
See Notes to Financial Statements
171
INTERNATIONAL INSTITUTIONAL FUND | INTERNATIONAL LARGE CAP FUND | ||||||||||
Year Ended August 31, 2011 | Year Ended August 31, 2010 | Year Ended August 31, 2011 | Year Ended August 31, 2010 | ||||||||
— | — | — | — | ||||||||
— | — | 148 | 320 | ||||||||
— | — | — | — | ||||||||
3,456 | 3,168 | 1,079 | 998 | ||||||||
— | — | 60 | 69 | ||||||||
— | — | 2 | 1 | ||||||||
— | — | — | 1 | ||||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | — | (19,007 | ) | (7,414 | |||||||
— | — | — | — | ||||||||
(20,693 | ) | (93,157 | ) | (34,663 | ) | (4,664 | ) | ||||
— | — | (9,229 | ) | (1,869 | ) | ||||||
— | — | (664 | ) | (129 | ) | ||||||
— | — | (24 | ) | — | |||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | 2 | 2 | 1 | ||||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
163,595 | (70,293 | ) | (1,007 | ) | 64,242 | ||||||
— | — | — | — | ||||||||
174,525 | (55,722 | ) | 19,469 | 66,893 | |||||||
168,072 | 223,794 | 168,006 | 101,113 | ||||||||
$ | 342,597 | $ | 168,072 | $ | 187,475 | $ | 168,006 | ||||
$ | — | $ | — | $ | 1,446 | $ | 175 | ||||
$ | — | $ | (399 | ) | $ | — | $ | — |
172
Statements of Changes in Net Assets (cont'd)
Neuberger Berman Equity Funds
(000's omitted)
INTRINSIC VALUE FUND | LARGE CAP DISCIPLINED GROWTH FUND | LARGE CAP VALUE FUND | ||||||||||||||||||
Year Ended August 31, 2011 | Period from May 10, 2010 (Commencement of Operations) to August 31, 2010 | Year Ended August 31, 2011 | Year Ended August 31, 2010 | Year Ended August 31, 2011 | Year Ended August 31, 2010 | |||||||||||||||
Increase (Decrease) in Net Assets: | ||||||||||||||||||||
From Operations (Note A): | ||||||||||||||||||||
Net investment income (loss) | $ | (456 | ) | $ | 92 | $ | 1,095 | $ | 1,277 | $ | 20 | $ | 12 | |||||||
Net realized gain (loss) on investments | 14,497 | 1,351 | 38,094 | 260 | 239 | 74 | ||||||||||||||
Change in net unrealized appreciation (depreciation) of investments | (11,232 | ) | (6,647 | ) | 41,586 | (17,073 | ) | 8 | (95 | ) | ||||||||||
Net increase (decrease) in net assets resulting from operations | 2,809 | (5,204 | ) | 80,775 | (15,536 | ) | 267 | (9 | ) | |||||||||||
Distributions to Shareholders From (Note A): | ||||||||||||||||||||
Net investment income: | ||||||||||||||||||||
Investor Class | — | — | (3 | ) | (6 | ) | — | — | ||||||||||||
Trust Class | — | — | — | — | — | (32 | ) | |||||||||||||
Advisor Class | — | — | — | — | — | — | ||||||||||||||
Institutional Class | (280 | ) | — | (1,073 | ) | (400 | ) | (11 | ) | — | ||||||||||
Class A | (5 | — | (17 | ) | — | — | — | |||||||||||||
Class C | (0 | ) | — | — | — | — | — | |||||||||||||
Class R3 | — | — | — | — | — | — | ||||||||||||||
Net realized gain on investments: | ||||||||||||||||||||
Institutional Class | (3,436 | ) | — | — | — | — | — | |||||||||||||
Class A | (72 | ) | — | — | — | — | — | |||||||||||||
Class C | (3 | ) | — | — | — | — | — | |||||||||||||
Class R3 | — | — | — | — | — | — | ||||||||||||||
Tax Return of Capital: | ||||||||||||||||||||
Investor Class | — | — | — | — | — | — | ||||||||||||||
Trust Class | — | — | — | — | — | — | ||||||||||||||
Institutional Class | — | — | — | — | — | — | ||||||||||||||
Class A | — | — | — | — | — | — | ||||||||||||||
Class C | — | — | — | — | — | — | ||||||||||||||
Class R3 | — | — | — | — | — | — | ||||||||||||||
Total distributions to shareholders | (3,796 | ) | — | (1,093 | ) | (406 | ) | (11 | ) | (32 | ) | |||||||||
From Fund Share Transactions (Note D): | ||||||||||||||||||||
Proceeds from shares sold: | ||||||||||||||||||||
Investor Class | — | — | 5,825 | 3,226 | — | — | ||||||||||||||
Trust Class | — | — | — | — | — | — | ||||||||||||||
Advisor Class | — | — | — | — | — | — | ||||||||||||||
Institutional Class | 41,002 | 3,148 | 274,226 | 389,464 | 1,833 | — | ||||||||||||||
Class A | 11,755 | 730 | 30,062 | 40,400 | 365 | — | ||||||||||||||
Class C | 7,696 | 50 | 10,912 | 14,048 | 31 | — | ||||||||||||||
Class R3 | — | — | 379 | — | — | — |
See Notes to Financial Statements
173
MID CAP GROWTH FUND | MULTI-CAP OPPORTUNITIES FUND | ||||||||||
Year Ended August 31, 2011 | Year Ended August 31, 2010 | Year Ended August 31, 2011 | Year Ended August 31, 2010 | ||||||||
$ | (2,267 | ) | $ | (2,213 | ) | $ | 388 | $ | 257 | ||
65,527 | 44,583 | 3,155 | 393 | ||||||||
60,375 | 25,565 | 5,545 | (4,095 | ) | |||||||
123,635 | 67,935 | 9,088 | (3,445 | ||||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | — | (363 | ) | (31 | |||||||
— | — | (1 | ) | — | |||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | — | (364 | ) | (31 | ) | ||||||
10,733 | 7,186 | — | — | ||||||||
8,510 | 10,390 | — | — | ||||||||
4,083 | 1,982 | — | — | ||||||||
62,788 | 130,572 | 69,807 | 53,199 | ||||||||
16,606 | 15,612 | 559 | 515 | ||||||||
405 | 231 | 155 | 69 | ||||||||
747 | — | — | — |
174
Statements of Changes in Net Assets (cont'd)
Neuberger Berman Equity Funds (cont'd)
(000's omitted)
INTRINSIC VALUE FUND | LARGE CAP DISCIPLINED GROWTH FUND | LARGE CAP VALUE FUND | ||||||||||||||||
Year Ended August 31, 2011 | Period from May 10, 2010 (Commencement of Operations) to August 31, 2010 | Year Ended August 31, 2011 | Year Ended August 31, 2010 | Year Ended August 31, 2011 | Year Ended August 31, 2010 | |||||||||||||
Proceeds from reinvestment of dividends and distributions: | ||||||||||||||||||
Investor Class | — | — | 3 | 6 | — | — | ||||||||||||
Trust Class | — | — | — | — | — | 32 | ||||||||||||
Advisor Class | — | — | — | — | — | — | ||||||||||||
Institutional Class | 3,704 | — | 763 | 196 | 11 | — | ||||||||||||
Class A | 77 | — | 14 | — | — | — | ||||||||||||
Class C | 2 | — | — | — | — | — | ||||||||||||
Class R3 | — | — | — | — | — | — | ||||||||||||
Proceeds from conversion of Trust Class shares (Note G): | ||||||||||||||||||
Trust Class | — | — | — | — | — | (1,400 | ) | |||||||||||
Institutional Class | — | — | — | — | — | 1,400 | ||||||||||||
Payments for shares redeemed: | ||||||||||||||||||
Investor Class | — | — | (3,962 | ) | (3,876 | ) | — | — | ||||||||||
Trust Class | — | — | — | — | — | — | ||||||||||||
Advisor Class | — | — | — | — | — | — | ||||||||||||
Institutional Class | (12,601 | ) | (10,019 | ) | (120,864 | ) | (46,220 | ) | (677 | ) | — | |||||||
Class A | (2,413 | ) | (52 | ) | (30,147 | ) | (74,960 | ) | — | — | ||||||||
Class C | (1,008 | ) | — | (10,420 | ) | (8,903 | ) | — | — | |||||||||
Class R3 | — | — | (126 | ) | — | — | — | |||||||||||
Redemption fees retained: | ||||||||||||||||||
Investor Class | — | — | — | — | — | — | ||||||||||||
Trust Class | — | — | — | — | — | — | ||||||||||||
Institutional Class | — | — | — | — | — | — | ||||||||||||
Class A | — | — | — | — | — | — | ||||||||||||
Class C | — | — | — | — | — | — | ||||||||||||
Class R3 | — | — | — | — | — | — | ||||||||||||
Proceeds from shares issued in connection with the Reorganization (Note G) | ||||||||||||||||||
Institutional Class | — | 92,968 | — | — | — | — | ||||||||||||
Net increase (decrease) from Fund share transactions | 48,214 | 86,825 | 156,665 | 313,381 | 1,563 | 32 | ||||||||||||
Voluntary Contribution from Management (Note B) | — | — | — | — | — | — | ||||||||||||
Net Increase (Decrease) in Net Assets | 47,227 | 81,621 | 236,347 | 297,439 | 1,819 | (9 | ) | |||||||||||
Net Assets: | ||||||||||||||||||
Beginning of year | 81,621 | — | 422,039 | 124,600 | 1,207 | 1,216 | ||||||||||||
End of year | $ | 128,848 | $ | 81,621 | $ | 658,386 | $ | 422,039 | $ | 3,026 | $ | 1,207 | ||||||
Undistributed net investment income (loss) at end of year | $ | — | $ | 93 | $ | 1,001 | $ | 991 | $ | 20 | $ | 11 | ||||||
Distributions in excess of net investment income at end of year | $ | (179 | ) | $ | — | $ | — | $ | — | $ | — | $ | — |
See Notes to Financial Statements
175
MID CAP GROWTH FUND | MULTI-CAP OPPORTUNITIES FUND | ||||||||||
Year Ended August 31, 2011 | Year Ended August 31, 2010 | Year Ended August 31, 2011 | Year Ended August 31, 2010 | ||||||||
— | — | — | — | ||||||||
— | — | — | 31 | ||||||||
— | — | — | — | ||||||||
— | — | 16 | — | ||||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | — | — | (1,800 | ) | |||||||
— | — | — | 1,800 | ) | |||||||
(45,446 | ) | (38,004 | ) | — | — | ||||||
(8,218 | ) | (7,469 | ) | — | (1,500 | ) | |||||
(2,007 | ) | (4,328 | ) | — | — | ||||||
(99,978 | ) | (183,352 | ) | (34,607 | ) | (4,216 | |||||
(9,011 | ) | (1,451 | ) | (744 | ) | (186 | |||||
(62 | ) | (67 | ) | — | — | ||||||
(356 | ) | — | — | — | |||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
(61,206 | ) | (68,698 | ) | 35,186 | 47,912 | ||||||
— | — | — | — | ||||||||
62,429 | (763 | ) | 43,910 | 44,436 | |||||||
450,226 | 450,989 | 47,555 | 3,119 | ||||||||
$ | 512,655 | $ | 450,226 | $ | 91,465 | $ | 47,555 | ||||
$ | — | $ | — | $ | 204 | $ | 257 | ||||
$ | — | $ | — | $ | — | $ | — |
176
Statements of Changes in Net Assets (cont'd)
Neuberger Berman Equity Funds
(000's omitted)
PARTNERS FUND | REAL ESTATE FUND | REGENCY FUND | |||||||||||||||||
Year Ended August 31, 2011 | Year Ended August 31, 2010 | Year Ended August 31, 2011 | Year Ended August 31, 2010 | Year Ended August 31, 2011 | Year Ended August 31, 2010 | ||||||||||||||
Increase (Decrease) in Net Assets: | |||||||||||||||||||
From Operations (Note A): | |||||||||||||||||||
Net investment income (loss) | $ | 8,452 | $ | 2,738 | $ | 2,010 | $ | 1,779 | $ | 372 | $ | 101 | |||||||
Net realized gain (loss) on investments | 260,236 | (7,213 | ) | 14,550 | 10,105 | 12,321 | 3,299 | ||||||||||||
Change in net unrealized appreciation (depreciation) of investments | 65,287 | 82,978 | 11,482 | 15,288 | 7,548 | (787 | ) | ||||||||||||
Net increase (decrease) in net assets resulting from operations | 333,975 | 78,503 | 28,042 | 27,172 | 20,241 | 2,613 | |||||||||||||
Distributions to Shareholders From (Note A): | |||||||||||||||||||
Net investment income: | |||||||||||||||||||
Investor Class | (1,651 | ) | (8,029 | ) | — | — | (65 | ) | (336 | ) | |||||||||
Trust Class | (41 | (4,115 | ) | (3,358 | ) | (1,439 | ) | (43 | ) | (257 | ) | ||||||||
Advisor Class | — | (2,659 | ) | — | — | — | — | ||||||||||||
Institutional Class | (512 | ) | (1,236 | ) | (1,252 | ) | (239 | ) | (3 | ) | — | ||||||||
Class A | (1 | ) | — | (238 | ) | (0 | ) | (0 | ) | — | |||||||||
Class C | (0 | ) | — | (33 | ) | (0 | ) | — | — | ||||||||||
Class R3 | (0 | ) | — | (2 | ) | (0 | ) | — | — | ||||||||||
Net realized gain on investments: | |||||||||||||||||||
Institutional Class | — | — | — | — | — | — | |||||||||||||
Class A | — | — | — | — | — | — | |||||||||||||
Class C | — | — | — | — | — | — | |||||||||||||
Class R3 | — | — | — | — | — | — | |||||||||||||
Tax Return of Capital: | |||||||||||||||||||
Investor Class | — | — | — | — | — | — | |||||||||||||
Trust Class | — | — | — | (395 | ) | — | — | ||||||||||||
Institutional Class | — | — | — | (65 | ) | — | — | ||||||||||||
Class A | — | — | — | (0 | ) | — | — | ||||||||||||
Class C | — | — | — | (0 | ) | — | — | ||||||||||||
Class R3 | — | — | — | (0 | ) | — | — | ||||||||||||
Total distributions to shareholders | (2,205 | ) | (16,039 | ) | (4,883 | ) | (2,138 | ) | (111 | ) | (593 | ) | |||||||
From Fund Share Transactions (Note D): | |||||||||||||||||||
Proceeds from shares sold: | |||||||||||||||||||
Investor Class | 74,334 | 138,438 | — | — | 7,185 | 28,267 | |||||||||||||
Trust Class | 38,654 | 100,153 | 138,594 | 81,532 | 5,314 | 85,347 | |||||||||||||
Advisor Class | 42,986 | 71,790 | — | — | — | — | |||||||||||||
Institutional Class | 96,923 | 41,170 | 108,485 | 17,701 | 3,620 | 1,022 | |||||||||||||
Class A | 3,028 | 35 | 44,074 | 543 | 1,432 | 30 | |||||||||||||
Class C | 40 | 30 | 8,984 | 137 | 93 | 35 | |||||||||||||
Class R3 | — | 30 | 355 | 30 | 124 | 30 |
See Notes to Financial Statements
177
SELECT EQUITIES FUND | SMALL CAP GROWTH FUND | ||||||||||
Year Ended August 31, 2011 | Year Ended August 31, 2010 | Year Ended August 31, 2011 | Year Ended August 31, 2010 | ||||||||
$ | 176 | $ | 218 | $ | (1,759 | ) | $ | (1,845 | ) | ||
6,095 | 3,708 | 51,081 | 34,610 | ||||||||
4,810 | (4,906 | ) | 7,233 | (23,308 | ) | ||||||
11,081 | (980 | ) | 56,555 | 9,457 | |||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
(165 | ) | (60 | ) | — | — | ||||||
(75 | ) | (117 | ) | — | — | ||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
(588 | ) | (195 | ) | — | — | ||||||
(936 | ) | (818 | ) | — | — | ||||||
(374 | ) | (184 | ) | — | — | ||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
— | — | — | — | ||||||||
(2,138 | ) | (1,374 | ) | — | — | ||||||
— | — | 5,673 | 68,483 | ||||||||
— | — | 4,236 | 7,814 | ||||||||
— | — | 3,396 | 3,953 | ||||||||
15,320 | 17,277 | 24,584 | 94,869 | ||||||||
11,389 | 30,804 | 2,105 | 652 | ||||||||
2,667 | 6,357 | 183 | 69 | ||||||||
— | — | 18 | 1 |
178
Statements of Changes in Net Assets (cont'd)
Neuberger Berman Equity Funds (cont'd)
(000's omitted)
PARTNERS FUND | REAL ESTATE FUND | REGENCY FUND | |||||||||||||||||
Year Ended August 31, 2011 | Year Ended August 31, 2010 | Year Ended August 31, 2011 | Year Ended August 31, 2010 | Year Ended August 31, 2011 | Year Ended August 31, 2010 | ||||||||||||||
Proceeds from reinvestment of dividends and distributions: | |||||||||||||||||||
Investor Class | 1,578 | 7,676 | — | — | 62 | 319 | |||||||||||||
Trust Class | 40 | 3,880 | 3,267 | 1,789 | 41 | 245 | |||||||||||||
Advisor Class | — | 2,499 | — | — | — | — | |||||||||||||
Institutional Class | 494 | 1,199 | 643 | 49 | 3 | — | |||||||||||||
Class A | 1 | — | 207 | — | — | — | |||||||||||||
Class C | — | — | 21 | — | — | — | |||||||||||||
Class R3 | — | — | 2 | — | — | — | |||||||||||||
Proceeds from conversion of Trust Class shares (Note G): | |||||||||||||||||||
Trust Class | — | — | — | — | — | — | |||||||||||||
Institutional Class | — | — | — | — | — | — | |||||||||||||
Payments for shares redeemed: | |||||||||||||||||||
Investor Class | (268,716 | ) | (332,108 | ) | — | — | (26,056 | ) | (20,055 | ) | |||||||||
Trust Class | (251,604 | ) | (192,603 | ) | (72,565 | ) | (41,057 | ) | (72,798 | ) | (30,468 | ) | |||||||
Advisor Class | (126,640 | ) | (119,450 | ) | — | — | — | — | |||||||||||
Institutional Class | (61,130 | ) | (59,013 | ) | (17,479 | ) | (2,130 | ) | (517 | ) | (258 | ) | |||||||
Class A | (1,356 | ) | — | (8,698 | ) | (4 | ) | (134 | ) | — | |||||||||
Class C | — | — | (770 | ) | — | (10 | ) | — | |||||||||||
Class R3 | — | — | (39 | ) | — | — | — | ||||||||||||
Redemption fees retained: | |||||||||||||||||||
Investor Class | — | — | — | — | — | — | |||||||||||||
Trust Class | — | — | 83 | 24 | — | — | |||||||||||||
Institutional Class | — | — | 27 | 4 | — | — | |||||||||||||
Class A | — | — | 7 | — | — | — | |||||||||||||
Class C | — | — | 1 | — | — | — | |||||||||||||
Class R3 | — | — | — | — | — | — | |||||||||||||
Proceeds from shares issued in connection with the Reorganization (Note G) | |||||||||||||||||||
Institutional Class | — | — | — | — | — | — | |||||||||||||
Net increase (decrease) from Fund share transactions | (451,368 | ) | (336,274 | ) | 205,199 | 58,618 | (81,641 | ) | 64,514 | ||||||||||
Voluntary Contribution from Management (Note B) | — | — | — | — | — | — | |||||||||||||
Net Increase (Decrease) in Net Assets | (119,598 | ) | (273,810 | ) | 228,358 | 83,652 | (61,511 | ) | 66,534 | ||||||||||
Net Assets: | |||||||||||||||||||
Beginning of year | 2,227,007 | 2,500,817 | 150,038 | 66,386 | 137,178 | 70,644 | |||||||||||||
End of year | $ | 2,107,409 | $ | 2,227,007 | $ | 378,396 | $ | 150,038 | $ | 75,667 | $ | 137,178 | |||||||
Undistributed net investment income (loss) at end of year | $ | 8,175 | $ | 2,192 | $ | — | $ | — | $ | 295 | $ | 47 | |||||||
Distributions in excess of net investment income at end of year | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — |
See Notes to Financial Statements
179
SELECT EQUITIES FUND | SMALL CAP GROWTH FUND | |||||||||||
Year Ended August 31, 2011 | Year Ended August 31, 2010 | Year Ended August 31, 2011 | Year Ended August 31, 2010 | |||||||||
— | — | — | — | |||||||||
— | — | — | — | |||||||||
— | — | — | — | |||||||||
653 | 188 | — | — | |||||||||
915 | 669 | — | — | |||||||||
237 | 126 | — | — | |||||||||
— | — | — | — | |||||||||
— | — | — | — | |||||||||
— | — | — | — | |||||||||
— | — | (38,006 | ) | (152,060 | ) | |||||||
— | — | (13,552 | ) | (23,125 | ) | |||||||
— | — | (8,117 | ) | (6,446 | ) | |||||||
(8,413 | (5,470 | ) | (30,528 | ) | (11,722 | ) | ||||||
(24,490 | ) | (30,981 | ) | (1,630 | ) | (246 | ) | |||||
(2,924 | ) | (1,752 | ) | (11 | ) | (4 | ) | |||||
— | — | (5 | ) | — | ||||||||
— | — | — | — | |||||||||
— | — | — | — | |||||||||
— | — | — | — | |||||||||
— | — | — | — | |||||||||
— | — | — | — | |||||||||
— | — | — | — | |||||||||
— | — | — | — | |||||||||
(4,646 | ) | 17,218 | (51,654 | ) | (17,762 | ) | ||||||
— | — | — | — | |||||||||
4,297 | 14,864 | 4,901 | (8,305 | ) | ||||||||
67,131 | 52,267 | 190,405 | 198,710 | |||||||||
$ | 71,428 | $ | 67,131 | $ | 195,306 | $ | 190,405 | |||||
$ | 50 | $ | 114 | $ | — | $ | — | |||||
$ | — | $ | — | $ | — | $ | — |
180
Statements of Changes in Net Assets (cont'd)
Neuberger Berman Equity Funds
(000's omitted)
SOCIALLY RESPONSIVE FUND | |||||||
Year Ended August 31, 2011 | Year Ended August 31, 2010 | ||||||
Increase (Decrease) in Net Assets: | |||||||
From Operations (Note A): | |||||||
Net investment income (loss) | $ | 9,945 | $ | 2,647 | |||
Net realized gain (loss) on investments | 77,087 | (19,522 | ) | ||||
Change in net unrealized appreciation (depreciation) of investments | 112,965 | 113,650 | |||||
Net increase (decrease) in net assets resulting from operations | 199,997 | 96,775 | |||||
Distributions to Shareholders From (Note A): | |||||||
Net investment income: | |||||||
Investor Class | (921 | ) | (1,891 | ) | |||
Trust Class | (696 | ) | (1,213 | ) | |||
Advisor Class | — | — | |||||
Institutional Class | (765 | ) | (412 | ) | |||
Class A | (104 | ) | (24 | ) | |||
Class C | (6 | ) | (6 | ) | |||
Class R3 | (4 | ) | (0 | ) | |||
Net realized gain on investments: | |||||||
Institutional Class | — | — | |||||
Class A | — | — | |||||
Class C | — | — | |||||
Class R3 | — | — | |||||
Tax Return of Capital: | |||||||
Investor Class | — | — | |||||
Trust Class | — | — | |||||
Institutional Class | — | — | |||||
Class A | — | — | |||||
Class C | — | — | |||||
Class R3 | — | — | |||||
Total distributions to shareholders | (2,496 | ) | (3,546 | ) | |||
From Fund Share Transactions (Note D): | |||||||
Proceeds from shares sold: | |||||||
Investor Class | 139,144 | 72,265 | |||||
Trust Class | 164,774 | 86,558 | |||||
Advisor Class | — | — | |||||
Institutional Class | 281,194 | 98,699 | |||||
Class A | 71,454 | 12,643 | |||||
Class C | 10,253 | 3,521 | |||||
Class R3 | 10,856 | 176 |
See Notes to Financial Statements
181
Statements of Changes in Net Assets (cont'd)
Neuberger Berman Equity Funds (cont'd)
(000's omitted)
SOCIALLY RESPONSIVE FUND | ||||||
Year Ended August 31, 2011 | Year Ended August 31, 2010 | |||||
Proceeds from reinvestment of dividends and distributions: | ||||||
Investor Class | 867 | 1,743 | ||||
Trust Class | 687 | 1,197 | ||||
Advisor Class | — | — | ||||
Institutional Class | 718 | 390 | ||||
Class A | 86 | 20 | ||||
Class C | 4 | 4 | ||||
Class R3 | 3 | — | ||||
Proceeds from conversion of Trust Class shares (Note G): | ||||||
Trust Class | — | — | ||||
Institutional Class | — | — | ||||
Payments for shares redeemed: | ||||||
Investor Class | (187,556 | ) | (148,755 | ) | ||
Trust Class | (101,822 | ) | (68,082 | ) | ||
Advisor Class | — | — | ||||
Institutional Class | (51,612 | ) | (14,994 | ) | ||
Class A | (7,369 | ) | (1,077 | ) | ||
Class C | (695 | ) | (190 | ) | ||
Class R3 | (1,046 | ) | — | |||
Redemption fees retained: | ||||||
Investor Class | — | — | ||||
Trust Class | — | — | ||||
Institutional Class | — | — | ||||
Class A | — | — | ||||
Class C | — | — | ||||
Class R3 | — | — | ||||
Proceeds from shares issued in connection with the Reorganization (Note G) | ||||||
Institutional Class | — | — | ||||
Net increase (decrease) from Fund share transactions | 329,940 | 44,118 | ||||
Voluntary Contribution from Management (Note B) | — | — | ||||
Net Increase (Decrease) in Net Assets | 527,441 | 137,347 | ||||
Net Assets: | ||||||
Beginning of year | 1,121,524 | 984,177 | ||||
End of year | $ | 1,648,965 | $ | 1,121,524 | ||
Undistributed net investment income (loss) at end of year | $ | 9,638 | $ | 2,492 | ||
Distributions in excess of net investment income at end of year | $ | — | $ | — |
See Notes to Financial Statements
182
Notes to Financial Statements Equity Funds
Note A—Summary of Significant Accounting Policies:
1 | General: Neuberger Berman Equity Funds (the "Trust") is a Delaware statutory trust organized pursuant to an Amended and Restated Trust Instrument dated June 24, 2009. 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"). The Funds are separate operating series of the Trust, each of which (except Focus, Large Cap Disciplined Growth, Multi-Cap Opportunities, Real Estate, and Select Equities) is diversified. Under the 1940 Act, the status of a Fund that was registered as non-diversified may, under certain circumstances, change to that of a diversified fund. Ten Funds offer Investor Class shares, eleven offer Trust Class shares, six offer Advisor Class shares, twenty offer Institutional Class shares, nineteen offer Class A shares, nineteen offer Class C shares, and eleven offer Class R3 shares. During the fiscal years ended August 31, 2009 and 2010, certain of the Funds and share classes participated in Fund reorganizations and share class conversions, as described in Note G. Intrinsic Value had no operations until May 10, 2010 other than matters relating to its organization and registration of shares under the 1933 Act. Each of Global Equity and Global Thematic Opportunities had no operations until June 30, 2011, other than matters relating to its organization and registration of shares under the 1933 Act. 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 for Equity Income, accretion of original issue discount, where applicable, and accretion of discount on short-term investments, 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. Included in net realized gain (loss) on investments are proceeds from the settlements of class action litigation in which the Funds participated as class members. The amounts of such proceeds for the year ended August 31, 2011 were $632,597, $856,245, $2,529,700, $10,395, $255,696, $6,099, $161,332, $2,349, $678,468, $87,920, $11,346 and $155,889 for Focus, Genesis, Guardian, International, Intrinsic Value, Large Cap Disciplined Growth, Mid Cap Growth, Multi-Cap Opportunities, Partners, Regency, Small Cap Growth, and Socially Responsive, respectively. |
5 | Income tax information: The Funds are treated as separate entities for U.S. federal income tax purposes. It is the policy of each Fund, except Global Equity and Global Thematic Opportunities, to continue to, and the intention of |
183
Global Equity and Global Thematic Opportunities to qualify 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 earnings to its shareholders. To the extent a Fund distributes substantially all of its earnings 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. The Funds are subject to examination by U.S. federal and state tax authorities for returns filed for the prior three fiscal years 2008-2010. As of August 31, 2011, the Funds did not have any unrecognized tax positions. | |
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 each Fund, timing differences and differing characterization of distributions made by each Fund as a whole. The Funds may also utilize earnings and profits distributed to shareholders on redemption of their shares as a part of the dividends paid deduction for income tax purposes. | |
As determined on August 31, 2011, permanent differences resulting primarily from different book and tax accounting for net operating losses, convertible preferred stock income adjustments, contingent payment debt instrument basis adjustments, premium amortization adjustments, partnership and grantor trust income adjustments, foreign capital gains tax, foreign currency gains and losses, capital gain tax adjustments, non-deductible 12b-1 fees, non-taxable distributions from stocks, passive foreign investment companies gains and losses, distribution redesignations, excise taxes, distributions in excess of earnings, voluntary contribution from Management, capital loss carryforwards expiring and characterization of distributions from real estate investment trusts ("REITs") were reclassified at fiscal year-end. These reclassifications had no effect on net income, net asset value ("NAV") or NAV per share of each Fund. | |
For tax purposes, short-term gains are considered ordinary income. | |
The tax character of distributions paid during the years ended August 31, 2011 and August 31, 2010 were as follows: |
Distributions Paid From: | |||||||||||||||||||||||||||||||||
Ordinary Income | Long-Term Capital Gain | Return of Capital | Total | ||||||||||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||||||||||
Emerging Markets Equity | $ | 260,779 | $ | 401,423 | $ | 546,041 | $ | 75,247 | $ | — | $ | — | $ | 806,820 | $ | 476,670 | |||||||||||||||||
Equity Income | 28,980,423 | 4,424,691 | — | — | — | — | 28,980,423 | 4,424,691 | |||||||||||||||||||||||||
Focus | 3,145,492 | 4,526,117 | — | — | — | — | 3,145,492 | 4,526,117 | |||||||||||||||||||||||||
Genesis | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Global Equity | — | (2) | — | — | (2) | — | — | (2) | — | — | (2) | — | |||||||||||||||||||||
Global Thematic Opportunities | — | (2) | — | — | (2) | — | — | (2) | — | — | (2) | — | |||||||||||||||||||||
Guardian | 3,835,761 | 5,201,382 | — | — | — | — | 3,835,761 | 5,201,382 | |||||||||||||||||||||||||
International | 3,714,343 | 3,578,758 | — | — | — | 1,437,207 | 3,714,343 | 5,015,965 | |||||||||||||||||||||||||
International Institutional | 3,471,677 | 3,178,503 | — | — | — | — | 3,471,677 | 3,178,503 | |||||||||||||||||||||||||
International Large Cap | 1,345,152 | 1,424,898 | — | — | — | — | 1,345,152 | 1,424,898 | |||||||||||||||||||||||||
Intrinsic Value | 773,419 | — | (1) | 3,022,518 | — | (1) | — | — | (1) | 3,795,937 | — | (1) | |||||||||||||||||||||
Large Cap Disciplined Growth | 1,092,590 | 406,207 | — | — | — | — | 1,092,590 | 406,207 | |||||||||||||||||||||||||
Large Cap Value | 11,626 | 31,594 | — | — | — | — | 11,626 | 31,594 | |||||||||||||||||||||||||
Mid Cap Growth | — | — | — | — | — | — | — | — |
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Distributions Paid From: | |||||||||||||||||||||||||||||||||
Ordinary Income | Long-Term Capital Gain | Return of Capital | Total | ||||||||||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||||||||||
Multi-Cap Opportunities | $ | 363,704 | $ | 30,769 | $ | — | $ | — | $ | — | $ | — | $ | 363,704 | $ | 30,769 | |||||||||||||||||
Partners | 2,204,971 | 16,039,409 | — | — | — | — | 2,204,971 | 16,039,409 | |||||||||||||||||||||||||
Real Estate | 4,883,092 | 1,678,446 | — | — | — | 459,930 | 4,883,092 | 2,138,376 | |||||||||||||||||||||||||
Regency | 111,346 | 593,129 | — | — | — | — | 111,346 | 593,129 | |||||||||||||||||||||||||
Select Equities | 742,451 | 1,374,065 | 1,396,018 | — | — | — | 2,138,469 | 1,374,065 | |||||||||||||||||||||||||
Small Cap Growth | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Socially Responsive | 2,495,671 | 3,545,308 | — | — | — | — | 2,495,671 | 3,545,308 |
(1) | Period from May 10, 2010 (Commencement of Operations) to August 31, 2010. |
(2) | Period from June 30, 2011 (Commencement of Operations) to August 31, 2011. |
As of August 31, 2011, 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 | Total | |||||||||||||||||
Emerging Markets Equity | $ | 473,824 | $ | — | $ | (7,691,103 | ) | $ | (2,350,693 | ) | $ | (9,567,972 | ) | ||||||||
Equity Income | 22,508,822 | 8,721,248 | 41,518,854 | — | 72,748,924 | ||||||||||||||||
Focus | 2,769,981 | — | (1,692,662 | ) | (21,392,569 | ) | (20,315,250 | ) | |||||||||||||
Genesis | 95,412,913 | 267,424,521 | 3,962,756,337 | — | 4,325,593,771 | ||||||||||||||||
Global Equity | 80,952 | — | (79,632 | ) | (10,687 | ) | (9,367 | ) | |||||||||||||
Global Thematic Opportunities | 54,121 | — | (1,009,516 | ) | (83,421 | ) | (1,038,816 | ) | |||||||||||||
Guardian | 8,092,053 | — | 159,617,821 | (20,164,603 | ) | 147,545,271 | |||||||||||||||
International | — | — | 40,196,884 | (186,317,494 | ) | (146,120,610 | ) | ||||||||||||||
International Institutional | 351,154 | — | 11,041,023 | (163,149,817 | ) | (151,757,640 | ) | ||||||||||||||
International Large Cap | 1,500,609 | — | 14,153,254 | (58,924,403 | ) | (43,270,540 | ) | ||||||||||||||
Intrinsic Value | 272,509 | 11,965,170 | (6,652,845 | ) | — | 5,584,834 | |||||||||||||||
Large Cap Disciplined Growth | 1,018,098 | 29,354,946 | 36,096,549 | — | 66,469,593 | ||||||||||||||||
Large Cap Value | 19,482 | — | 18,300 | (892,397 | ) | (854,615 | ) | ||||||||||||||
Mid Cap Growth | — | — | 142,762,663 | (22,285,281 | ) | 120,477,382 | |||||||||||||||
Multi-Cap Opportunities | 3,477,311 | — | 1,650,745 | (961,752 | ) | 4,166,304 | |||||||||||||||
Partners | 8,174,851 | — | 263,414,206 | (306,123,055 | ) | (34,533,998 | ) | ||||||||||||||
Real Estate | — | — | 36,219,985 | (4,206,035 | ) | 32,013,950 | |||||||||||||||
Regency | 295,716 | — | 5,478,593 | (14,376,355 | ) | (8,602,046 | ) | ||||||||||||||
Select Equities | 2,880,122 | 2,544,303 | 3,836,827 | — | 9,261,252 | ||||||||||||||||
Small Cap Growth | — | — | 16,872,210 | (63,288,381 | ) | (46,416,171 | ) | ||||||||||||||
Socially Responsive | 9,638,034 | ��� | 173,352,904 | (96,475,584 | ) | 86,515,354 |
The differences between book basis and tax basis distributable earnings are primarily due to: wash sales, partnership and Trust basis adjustments, common stock basis adjustments, capital loss carryforwards, | |
185
post October loss deferrals, return of capital basis adjustments, organization expenses, passive foreign investment companies, contingent payment debt instrument basis adjustments, premium amortization accruals, forward contracts mark to market, non-taxable dividend adjustments and convertible preferred stock basis adjustments. | |
To the extent each Fund's net realized capital gains, if any, can be offset by capital loss carryforwards, it is the policy of each Fund not to distribute such gains. Under current tax law, the use of a fund's capital loss carryforwards to offset future gains may be limited. As determined at August 31, 2011, the following Funds had unused capital loss carryforwards available for federal income tax purposes to offset net realized capital gains, if any, as follows: |
Expiring in: | |||||||||||||
2016 | 2017 | 2018 | |||||||||||
Focus | $ | — | $ | — | $ | 21,392,569 | |||||||
Global Equity(1) | — | — | — | ||||||||||
Global Thematic Opportunities(1) | — | — | — | ||||||||||
Guardian | — | — | 20,164,603 | ||||||||||
International | — | 71,736,235 | 114,232,268 | ||||||||||
International Institutional | — | 85,006,896 | 78,142,921 | ||||||||||
International Large Cap | — | 22,763,951 | 36,160,452 | ||||||||||
Large Cap Value | — | 67,547 | 824,850 | ||||||||||
Mid Cap Growth | — | 21,093,068 | 1,192,213 | ||||||||||
Partners | — | — | 306,123,055 | ||||||||||
Real Estate | — | 448,804 | 3,757,231 | ||||||||||
Regency | — | — | 14,376,355 | ||||||||||
Small Cap Growth | 9,147,497 | 32,917,417 | 21,223,467 | ||||||||||
Socially Responsive | — | 3,751,904 | 92,723,680 |
During the year ended August 31, 2011, Equity Income, Focus, Genesis, Guardian, International, International Institutional, International Large Cap, Large Cap Disciplined Growth, Large Cap Value, Mid Cap Growth, Multi-Cap Opportunities, Partners, Real Estate, Regency, Small Cap Growth and Socially Responsive utilized capital loss carryforwards of $2,031,705, $69,325,127, $496,278,745, $103,470,963, $37,756,396, $8,654,396, $9,826,037, $6,222,796, $247,930, $65,790,559, $780,067, $223,883,133, $11,873,491, $10,766,690, $49,649,524 and $61,949,002, respectively. During the year ended August 31, 2011, Mid Cap Growth had capital loss carryforwards expire during the year of $36,905,067. | |
On December 22, 2010, the Regulated Investment Company ("RIC") Modernization Act of 2010 (the "Act") was enacted. The Act modernizes several of the federal income and excise tax provisions related to RICs, and, with certain exceptions, is effective for taxable years beginning after December 22, 2010. Among the changes made are changes to the capital loss carryforward rules allowing for RICs to carry forward capital losses indefinitely and to retain the character of capital loss carryforwards as short-term or long-term. Rules in effect previously limited the carryforward period to eight years and all carryforwards were considered short-term in character. Capital loss carryforwards generated in taxable years beginning after the effective date of the Act must be fully used before capital loss carryforwards generated in taxable years prior to the effective date of the Act; therefore, under certain circumstances, capital loss carryforwards available as of the report date, if any, may expire unused. | |
(1) | At August 31, 2011, Global Equity and Global Thematic Opportunities each had capital loss carryforwards of $10,687 and $83,421, respectively, that are short-term in character and that can be carried forward indefinitely. These capital loss carryforwards will be treated as occurring on the first day of the following fiscal year of each Fund. |
186
Under current tax law, certain net capital, net foreign currency losses and net passive foreign investment company mark to market losses realized after October 31 within the taxable year may be deferred and treated as occurring on the first day of the following tax year. For the year ended August 31, 2011, the Funds elected to defer the following: |
Post October Capital Loss Deferral | Post October Currency Loss Deferral | ||||||||
Emerging Markets Equity | $ | 2,350,693 | $ | — | |||||
International | — | 348,991 | |||||||
Multi-Cap Opportunities | 961,752 | — |
6 | Foreign taxes: Foreign taxes withheld represent amounts withheld by foreign tax authorities, net of refunds recoverable. |
Emerging Markets Equity accrues deferred capital gains tax on unrealized gains for securities domiciled in India. At August 31, 2011, this amounted to $23,903, which is reflected in accrued expenses and other payables in the Statement of Assets and Liabilities. | |
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. However, Equity Income and Real Estate generally distribute substantially all of their net investment income, if any, at the end of each calendar quarter. |
It is the policy of each of Equity Income, Real Estate and Regency to pass through to its shareholders substantially all REIT distributions and other income it receives, less operating expenses. The distributions received from REITs held by Equity Income, Real Estate and Regency are generally composed of income, capital gains, and/or return of REIT capital, but the REITs do not report this information to Equity Income, Real Estate and Regency until the following calendar year. At August 31, 2011, Equity Income, Real Estate and Regency estimated these amounts within the financial statements since the information is not available from the REITs until after each Fund's fiscal year-end. For the year ended August 31, 2011, the character of distributions paid to shareholders of Equity Income, Real Estate and Regency disclosed within the Statements of Changes in Net Assets is based on estimates made at that time. All estimates are based upon REIT information sources available to Equity Income, Real Estate and Regency together with actual IRS Forms 1099DIV received to date. Based on past experience it is possible that a portion of Equity Income's, Real Estate's and Regency's distributions during the current fiscal year will be considered tax return of capital, but the actual amount of the tax return of capital, if any, is not determinable until after each Fund's fiscal year-end. After calendar year-end, when Equity Income, Real Estate and Regency learn the nature of the distributions paid by REITs during that year, distributions previously identified as income are often re-characterized as return of capital and/or capital gain. After all applicable REITs have informed Equity Income, Real Estate and Regency of the actual breakdown of distributions paid to Equity Income, Real Estate and Regency during its fiscal year, estimates previously recorded are adjusted on the books of Equity Income, Real Estate and Regency to reflect actual results. As a result, the composition of Equity Income's, Real Estate's and Regency's distributions as reported herein may differ from the final composition determined after calendar year-end and reported to Equity Income, Real Estate and Regency shareholders on IRS Form 1099DIV. | |
8 | Organization expenses: Costs incurred by each of Global Equity and Global Thematic Opportunities in connection with its organization, which amounted to $83,115 and $71,218, respectively, 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 |
187
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 | Redemption of fund shares: Prior to June 1, 2011, each class of Emerging Markets Equity, International, International Institutional, and International Large Cap charged a redemption fee of 2%, and each class of Real Estate charged a redemption fee of 1%, on shares redeemed or exchanged for shares of another fund within 60 days or less of the purchase date. As of June 1, 2011, the Funds no longer charged a redemption fee. All redemption fees were paid to and recorded by each Fund as paid-in capital. For the year ended August 31, 2011, Emerging Markets Equity, International, International Institutional, International Large Cap, and Real Estate received $9,571, $2,769, $0, $1,681 and $118,130, respectively, in redemption fees. |
11 | 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. |
12 | Derivative instruments: During the year ended August 31, 2011, certain of the Funds' use of derivatives, as described below, was limited to written option transactions 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 Statement 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. |
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 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 to generate incremental cash for Equity Income for the year ended August 31, 2011. Written option transactions for Equity Income for the year ended August 31, 2011 were: |
Equity Income
Put Options | Call Options | ||||||||||||||||
Number | Value When Written | Number | Value When Written | ||||||||||||||
Contracts outstanding 8/31/2010 | — | $ | — | 60,600 | $ | 77,000 | |||||||||||
Contracts written | 108,000 | 190,000 | 690,200 | 1,054,000 | |||||||||||||
Contracts expired | — | — | (45,300 | ) | (51,000 | ) | |||||||||||
Contracts exercised | (20,000 | ) | (21,000 | ) | (45,000 | ) | (67,000 | ) | |||||||||
Contracts closed | (63,000 | ) | (106,000 | ) | (494,300 | ) | (733,000 | ) | |||||||||
Contracts outstanding 8/31/2011 | 25,000 | $ | 63,000 | 166,200 | $ | 280,000 |
188
Premiums paid by a 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, a Fund's loss is limited to the amount of the option premium paid. | |
Purchased option transactions were used for hedging purposes for Partners for the year ended August 31, 2011. There were no purchased options outstanding at August 31, 2011. Purchased option transactions for Partners for the year ended August 31, 2011 were: |
Partners
Call Options | |||||||||
Number | Value When Purchased | ||||||||
Contracts outstanding 8/31/2010 | — | $ | — | ||||||
Contracts purchased | 200,000 | 430,000 | |||||||
Contracts expired | — | — | |||||||
Contracts exercised | — | — | |||||||
Contracts closed | (200,000 | ) | (430,000 | ) | |||||
Contracts outstanding 8/31/2011 | — | $ | — |
At August 31, 2011, Equity Income had the following derivatives (which did not qualify for hedge accounting under ASC 815), grouped by primary risk exposure: |
Liability Derivatives
Equity Contracts Risk | Statements of Assets and Liabilities Location | ||||||
Option Contracts Written | $ | 899,000 | Option contracts | ||||
Total Value | $ | 899,000 | written, at value |
The impact of the use of these derivative instruments on the Statements of Operations during the year ended August 31, 2011 was as follows: |
Realized Gain (Loss)
Equity Income | Equity Contracts Risk | Statements of Operations Location | |||||
Option Contracts Written | $ | 501,000 | Net realized gain | ||||
Total Realized Gain (Loss) | $ | 501,000 | (loss) on options written |
Partners
Net realized gain | |||||||||
Option Contracts Purchased | $ | (259,000 | ) | (loss) on sales of | |||||
Total Realized Gain (Loss) | $ | (259,000 | ) | investment securities of unaffiliated issuers |
Change in Appreciation (Depreciation)
Equity Income | Equity Contracts Risk | Statements of Operations Location | |||||||
Change in net | |||||||||
Option Contracts Written | $ | (568,000 | ) | unrealized appreciation | |||||
Total Change in Appreciation (Depreciation) | $ | (568,000 | ) | (depreciation) in value of options written |
189
For the year ended August 31, 2011, Equity Income had an average market value of $400,800 in written options. | |
While the Funds may receive rights and warrants in connection with their investments in securities, these rights and warrants are not considered "derivative instruments" under ASC 815. Management has concluded that the Funds, except Equity Income and Partners, did not hold any derivative instruments during the year ended August 31, 2011 that require additional disclosures pursuant to ASC 815. | |
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: Each Fund has an expense offset arrangement in connection with its custodian contract. For the year ended August 31, 2011, the impact of this arrangement was a reduction of expenses of $29, $657, $15, $1,683, $0, $1, $25, $33, $21, $19, $11, $44, $0, $11, $13, $146, $25, $3, $16, $46 and $120 for Emerging Markets Equity, Equity Income, Focus, Genesis, Global Equity, Global Thematic Opportunities, Guardian, International, International Institutional, International Large Cap, Intrinsic Value, Large Cap Disciplined Growth, Large Cap Value, Mid Cap Growth, Multi-Cap Opportunities, Partners, Real Estate, Regency, Select Equities, Small Cap Growth, and Socially Responsive, respectively. |
15 | 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, each Fund pays Management a fee according to the following table: | |
Investment Management Fee as a Percentage of Average Daily Net Assets: |
First $250 million | Next $250 million | Next $250 million | Next $250 million | Next $500 million | Next $500 million | Next $500 million | Next $1.5 billion | Thereafter | |||||||||||||||||||||||||||||
For Genesis, Intrinsic Value, and Small Cap Growth: | |||||||||||||||||||||||||||||||||||||
0.85 | % | 0.80 | % | 0.75 | % | 0.70 | % | 0.65 | % | 0.65 | % | 0.65 | % | 0.65 | % | 0.65 | % | ||||||||||||||||||||
For Emerging Markets Equity: | |||||||||||||||||||||||||||||||||||||
1.00 | % | 0.975 | % | 0.95 | % | 0.925 | % | 0.90 | % | 0.875 | % | 0.875 | % | 0.875 | % | 0.85 | % | ||||||||||||||||||||
For Real Estate: | |||||||||||||||||||||||||||||||||||||
0.80 | % | 0.80 | % | 0.80 | % | 0.80 | % | 0.80 | % | 0.80 | % | 0.80 | % | 0.80 | % | 0.80 | % | ||||||||||||||||||||
For International and International Institutional: | |||||||||||||||||||||||||||||||||||||
0.85 | % | 0.825 | % | 0.80 | % | 0.775 | % | 0.75 | % | 0.725 | % | 0.725 | % | 0.70 | % | 0.70 | % | ||||||||||||||||||||
For Equity Income, Focus, Guardian, International Large Cap, Large Cap Disciplined Growth, Large Cap Value, Mid Cap Growth, Partners, Regency(1), Select Equities, and Socially Responsive: | |||||||||||||||||||||||||||||||||||||
0.55 | % | 0.525 | % | 0.50 | % | 0.475 | % | 0.45 | % | 0.425 | % | 0.425 | % | 0.425 | % | 0.40 | % | ||||||||||||||||||||
For Multi-Cap Opportunities: | |||||||||||||||||||||||||||||||||||||
0.60 | % | 0.575 | % | 0.55 | % | 0.525 | % | 0.50 | % | 0.475 | % | 0.475 | % | 0.475 | % | 0.45 | % | ||||||||||||||||||||
For Global Equity: | |||||||||||||||||||||||||||||||||||||
0.75 | % | 0.725 | % | 0.70 | % | 0.675 | % | 0.65 | % | 0.625 | % | 0.625 | % | 0.625 | % | 0.60 | % | ||||||||||||||||||||
For Global Thematic Opportunities: | |||||||||||||||||||||||||||||||||||||
0.85 | % | 0.825 | % | 0.80 | % | 0.775 | % | 0.75 | % | 0.725 | % | 0.725 | % | 0.725 | % | 0.70 | % |
190
(1) | Management has voluntarily agreed to waive its management fee in the amount of 0.11% of the average daily net assets of Regency (0.15% as of September 1, 2011). Management may, at its sole discretion, modify or terminate this voluntary waiver without notice to the Fund. For the year ended August 31, 2011, such waived fees amounted to $111,501 for Regency. |
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 Investor Class, Class A, Class C and Class R3 pays Management an administration fee at the annual rate of 0.20% of its average daily net assets, each Fund's Trust Class and Advisor Class pays Management an administration fee at the annual rate of 0.34% of its average daily net assets, and each Fund's Institutional Class pays Management an administration fee at the annual rate of 0.09% of its average daily net assets. 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 the agreement. | |
For the Trust Class of Focus, Guardian, International Large Cap, Partners, Real Estate, Regency, Small Cap Growth and Socially Responsive, the Advisor Class of each Fund, and Class A, Class C and Class R3 of each Fund, Management acts as agent in arranging for the sale of class shares without commission and bears advertising and promotion expenses. The Board has adopted distribution plans (each a "Plan", collectively, the "Plans") with respect to these classes, 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 0.10% of such Trust Class's, 0.25% of such Advisor Class's, 0.25% of such Class A's, 1.00% of such Class C's and 0.50% of such Class R3's average daily net assets. Management receives this amount to provide distribution and shareholder servicing for those 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 could have been 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. | |
Management has contractually agreed to forgo current payment of fees and/or reimburse certain expenses of the Investor Class of each of International, Large Cap Disciplined Growth, Regency and Small Cap Growth and the Trust Class, Advisor Class, Institutional Class, Class A, Class C and Class R3 of each Fund that offers those classes 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 do not cover interest, taxes, brokerage commissions, acquired fund fees and expenses, and extraordinary expenses, 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 forgone or reimbursed for that class provided that repayment does not cause the class' annual operating expenses to exceed its contractual expense limitation. The Institutional Class of each of Equity Income, Large Cap Value and Multi-Cap Opportunities has agreed to repay the fees and expenses forgone or reimbursed for that Fund's Trust Class prior to June 9, 2008, April 19, 2010 and December 21, 2009, respectively, provided that the repayment does not cause the class' annual operating expenses to exceed its contractual expense limitation. Any such repayment must be made within three years after the year in which Management incurred the expense. During the year ended August 31, 2011, the Institutional Class of Equity Income, Class A of Equity Income, Class C of Equity Income, the Advisor Class of Guardian, the Institutional Class of Guardian, the Investor Class of Large Cap Disciplined Growth, the Advisor Class of Mid Cap Growth, the Institutional Class of Socially Responsive, and Class R3 of Socially Responsive reimbursed Management $149,546, $14,135, $15,773, $933, $1,957, | |
191
$4,009, $11,836, $47,340, and $309, respectively, under its contractual expense limitation agreement. At August 31, 2011, contingent liabilities to Management under the agreement were as follows: |
Expenses Deferred In Fiscal Period Ending, August 31, | |||||||||||||||||||
2009 | 2010 | 2011 | |||||||||||||||||
Subject to Repayment until August 31, | |||||||||||||||||||
Class | Contractual Expense Limitation(1) | Expiration | 2012 | 2013 | 2014 | ||||||||||||||
Emerging Markets Equity Fund Institutional Class | 1.25 | % | 8/31/14 | $ | 371,874 | (3) | $ | 337,197 | $ | 800,846 | |||||||||
Emerging Markets Equity Fund Class A | 1.50 | % | 8/31/14 | 56,747 | (3) | 191,189 | 114,075 | ||||||||||||
Emerging Markets Equity Fund Class C | 2.25 | % | 8/31/14 | 19,340 | (3) | 11,530 | 13,198 | ||||||||||||
Emerging Markets Equity Fund Class R3 | 1.91 | % | 8/31/14 | — | 2,284 | (14) | 2,132 | ||||||||||||
Equity Income Fund Institutional Class | 0.80 | % | 8/31/14 | 18,095 | 105,290 | — | |||||||||||||
Equity Income Fund Class A | 1.16 | % | 8/31/14 | 307,047 | 177,324 | — | |||||||||||||
Equity Income Fund Class C | 1.91 | % | 8/31/14 | 5,564 | 39,060 | — | |||||||||||||
Equity Income Fund Class R3 | 1.41 | % | 8/31/14 | — | 2,040 | (14) | 1,618 | ||||||||||||
Focus Fund Trust Class | 1.50 | % | 8/31/14 | — | — | — | |||||||||||||
Focus Fund Advisor Class | 1.50 | % | 8/31/21 | — | — | — | |||||||||||||
Focus Fund Institutional Class | 0.75 | % | 8/31/14 | — | 2,035 | (14) | 2,813 | ||||||||||||
Focus Fund Class A | 1.11 | % | 8/31/14 | — | 2,035 | (14) | 1,836 | ||||||||||||
Focus Fund Class C | 1.86 | % | 8/31/14 | — | 2,036 | (14) | 1,723 | ||||||||||||
Genesis Fund Trust Class | 1.50 | % | 8/31/14 | — | — | — | |||||||||||||
Genesis Fund Advisor Class | 1.50 | % | 8/31/21 | — | — | — | |||||||||||||
Genesis Fund Institutional Class | 0.85 | % | 8/31/21 | 510,447 | 783,406 | 699,320 | |||||||||||||
Global Equity Fund Institutional Class | 1.15 | % | 8/31/14 | — | — | 140,976 | (17) | ||||||||||||
Global Equity Fund Class A | 1.51 | % | 8/31/14 | — | — | 11,381 | (17) | ||||||||||||
Global Equity Fund Class C | 2.26 | % | 8/31/14 | — | — | 9,265 | (17) | ||||||||||||
Global Thematic Opportunities Fund Institutional Class | 1.25 | % | 8/31/14 | — | — | 154,263 | (17) | ||||||||||||
Global Thematic Opportunities Fund Class A | 1.61 | % | 8/31/14 | — | — | 2,585 | (17) | ||||||||||||
Global Thematic Opportunities Fund Class C | 2.36 | % | 8/31/14 | — | — | 2,176 | (17) | ||||||||||||
Guardian Fund Trust Class | 1.50 | % | 8/31/14 | — | — | — | |||||||||||||
Guardian Fund Advisor Class | 1.50 | % | 8/31/21 | 20,599 | 6,275 | — | |||||||||||||
Guardian Fund Institutional Class | 0.75 | % | 8/31/14 | — | (6) | 7 | — | ||||||||||||
Guardian Fund Class A | 1.11 | % | 8/31/14 | 633 | (6) | 2,942 | 2,166 | ||||||||||||
Guardian Fund Class C | 1.86 | % | 8/31/14 | 603 | (6) | 1,149 | 296 | ||||||||||||
Guardian Fund Class R3 | 1.36 | % | 8/31/14 | 603 | (6) | 1,052 | 140 | ||||||||||||
International Fund Investor Class | 1.40 | % | 8/31/14 | — | 16,392 | 290,850 | |||||||||||||
International Fund Trust Class | 2.00 | % | 8/31/21 | — | — | — | |||||||||||||
International Fund Class A | 1.51 | % | 8/31/14 | — | — | 2,210 | (15) | ||||||||||||
International Fund Class C | 2.26 | % | 8/31/14 | — | — | 1,681 | (15) | ||||||||||||
International Institutional Fund Institutional Class | 0.85 | %(2) | 8/31/21 | 892,834 | 827,327 | 976,101 |
192
Expenses Deferred In Fiscal Period Ending, August 31, | |||||||||||||||||||
2009 | 2010 | 2011 | |||||||||||||||||
Subject to Repayment until August 31, | |||||||||||||||||||
Class | Contractual Expense Limitation(1) | Expiration | 2012 | 2013 | 2014 | ||||||||||||||
International Large Cap Fund Trust Class | 1.25 | % | 8/31/14 | $ | 118,494 | $ | 84,392 | $ | 36,362 | ||||||||||
International Large Cap Fund Institutional Class | 0.90 | % | 8/31/14 | 259,193 | 181,331 | 174,363 | |||||||||||||
International Large Cap Fund Class A | 1.30 | %(2) | 8/31/14 | 15,881 | 15,818 | 7,000 | |||||||||||||
International Large Cap Fund Class C | 2.00 | % | 8/31/14 | 3,157 | 2,975 | 3,222 | |||||||||||||
International Large Cap Fund Class R3 | 1.51 | % | 8/31/14 | 642 | (6) | 1,177 | 283 | ||||||||||||
Intrinsic Value Fund Institutional Class | 1.00 | % | 8/31/14 | — | 331,673 | (13) | 292,802 | ||||||||||||
Intrinsic Value Fund Class A | 1.36 | % | 8/31/14 | — | 2,249 | (13) | 13,592 | ||||||||||||
Intrinsic Value Fund Class C | 2.11 | % | 8/31/14 | — | 225 | (13) | 5,011 | ||||||||||||
Large Cap Disciplined Growth Fund Investor Class | 1.11 | %(5) | 8/31/15 | 110,752 | 14,102 | — | |||||||||||||
Large Cap Disciplined Growth Fund Institutional Class | 0.75 | % | 8/31/14 | 40,802 | (4) | 236,837 | 235,665 | ||||||||||||
Large Cap Disciplined Growth Fund Class A | 1.11 | % | 8/31/14 | 120,878 | (4) | 79,451 | 35,879 | ||||||||||||
Large Cap Disciplined Growth Fund Class C | 1.86 | % | 8/31/14 | 57,300 | (4) | 46,889 | 21,490 | ||||||||||||
Large Cap Disciplined Growth Fund Class R3 | 1.36 | % | 8/31/14 | 679 | (6) | 1,123 | 258 | ||||||||||||
Large Cap Value Fund Institutional Class | 0.75 | %(12) | 8/31/14 | 258,534 | 187,742 | (11) | 254,006 | ||||||||||||
Large Cap Value Fund Class A | 1.11 | % | 8/31/14 | — | — | 13,297 | (16) | ||||||||||||
Large Cap Value Fund Class C | 1.86 | % | 8/31/14 | — | — | 3,825 | (16) | ||||||||||||
Mid Cap Growth Fund Trust Class | 1.50 | % | 8/31/14 | — | — | — | |||||||||||||
Mid Cap Growth Fund Advisor Class | 1.50 | % | 8/31/21 | 12,953 | — | — | |||||||||||||
Mid Cap Growth Fund Institutional Class | 0.75 | % | 8/31/14 | 87,923 | 127,686 | 94,033 | |||||||||||||
Mid Cap Growth Fund Class A | 1.11 | % | 8/31/14 | 625 | (6) | 6,744 | 16,201 | ||||||||||||
Mid Cap Growth Fund Class C | 1.86 | % | 8/31/14 | 613 | (6) | 1,365 | 821 | ||||||||||||
Mid Cap Growth Fund Class R3 | 1.36 | % | 8/31/14 | 613 | (6) | 1,110 | 397 | ||||||||||||
Multi-Cap Opportunities Fund Institutional Class | 1.00 | %(7) | 8/31/14 | 146,100 | 218,745 | (9) | 126,524 | ||||||||||||
Multi-Cap Opportunities Fund Class A | 1.36 | % | 8/31/14 | — | 3,135 | (8) | 896 | ||||||||||||
Multi-Cap Opportunities Fund Class C | 2.11 | % | 8/31/14 | — | 1,973 | (8) | 524 | ||||||||||||
Partners Fund Trust Class | 1.50 | % | 8/31/14 | — | — | — | |||||||||||||
Partners Fund Advisor Class | 1.50 | % | 8/31/21 | — | — | — | |||||||||||||
Partners Fund Institutional Class | 0.70 | % | 8/31/14 | — | — | — | |||||||||||||
Partners Fund Class A | 1.11 | % | 8/31/14 | — | 2,027 | (14) | 1,333 | ||||||||||||
Partners Fund Class C | 1.86 | % | 8/31/14 | — | 2,027 | (14) | 1,629 | ||||||||||||
Partners Fund Class R3 | 1.36 | % | 8/31/14 | — | 2,029 | (14) | 1,607 | ||||||||||||
Real Estate Fund Trust Class | 1.50 | %(2) | 8/31/21 | 221,579 | 222,429 | 84,709 | |||||||||||||
Real Estate Fund Institutional Class | 0.85 | % | 8/31/21 | 21,094 | 79,150 | 209,367 |
193
Expenses Deferred In Fiscal Period Ending, August 31, | |||||||||||||||||||
2009 | 2010 | 2011 | |||||||||||||||||
Subject to Repayment until August 31, | |||||||||||||||||||
Class | Contractual Expense Limitation(1) | Expiration | 2012 | 2013 | 2014 | ||||||||||||||
Real Estate Fund Class A | 1.21 | % | 8/31/14 | $ | — | $ | 2,145 | (14) | $ | 65,175 | |||||||||
Real Estate Fund Class C | 1.96 | % | 8/31/14 | — | 2,098 | (14) | 14,827 | ||||||||||||
Real Estate Fund Class R3 | 1.46 | % | 8/31/14 | — | 2,066 | (14) | 2,177 | ||||||||||||
Regency Fund Investor Class | 1.50 | % | 8/31/21 | — | — | — | |||||||||||||
Regency Fund Trust Class | 1.25 | % | 8/31/21 | 110,510 | 80,831 | 71,988 | |||||||||||||
Regency Fund Institutional Class | 0.85 | % | 8/31/14 | — | 576 | (10) | 4,750 | ||||||||||||
Regency Fund Class A | 1.21 | % | 8/31/14 | — | 2,050 | (14) | 2,672 | ||||||||||||
Regency Fund Class C | 1.96 | % | 8/31/14 | — | 2,052 | (14) | 1,870 | ||||||||||||
Regency Fund Class R3 | 1.46 | % | 8/31/14 | — | 2,055 | (14) | 1,691 | ||||||||||||
Select Equities Fund Institutional Class | 0.75 | % | 8/31/14 | 37,421 | 61,415 | 106,173 | |||||||||||||
Select Equities Fund Class A | 1.20 | % | 8/31/14 | 191,995 | 176,836 | 124,091 | |||||||||||||
Select Equities Fund Class C | 1.95 | % | 8/31/14 | 28,856 | 43,830 | 46,670 | |||||||||||||
Small Cap Growth Fund Investor Class | 1.30 | %(2) | 8/31/21 | 307,973 | 267,245 | 140,394 | |||||||||||||
Small Cap Growth Fund Trust Class | 1.40 | %(2) | 8/31/21 | 89,143 | 94,255 | 62,498 | |||||||||||||
Small Cap Growth Fund Advisor Class | 1.60 | % | 8/31/21 | 39,339 | 32,264 | 21,179 | |||||||||||||
Small Cap Growth Fund Institutional Class | 0.90 | % | 8/31/14 | 38,496 | 161,405 | 401,065 | |||||||||||||
Small Cap Growth Fund Class A | 1.26 | % | 8/31/14 | 702 | (6) | 2,583 | 7,835 | ||||||||||||
Small Cap Growth Fund Class C | 2.01 | % | 8/31/14 | 685 | (6) | 1,571 | 1,142 | ||||||||||||
Small Cap Growth Fund Class R3 | 1.51 | % | 8/31/14 | 678 | (6) | 1,618 | 457 | ||||||||||||
Socially Responsive Fund Trust Class | 1.50 | % | 8/31/14 | — | — | — | |||||||||||||
Socially Responsive Fund Institutional Class | 0.75 | % | 8/31/14 | — | — | — | |||||||||||||
Socially Responsive Fund Class A | 1.11 | % | 8/31/14 | 628 | (6) | 5,979 | 10,903 | ||||||||||||
Socially Responsive Fund Class C | 1.86 | % | 8/31/14 | 603 | (6) | 2,285 | 2,205 | ||||||||||||
Socially Responsive Fund Class R3 | 1.36 | % | 8/31/14 | 292 | (6) | 1,161 | — |
(1) | Expense limitation per annum of the respective class' average daily net assets. |
(2) | In addition, Management has voluntarily undertaken to forgo current payment of fees and/or reimburse the Institutional Class of International Institutional, Class A of International Large Cap, the Trust Class of Real Estate, the Investor Class of Small Cap Growth and the Trust Class of Small Cap Growth, so that their Operating Expenses are limited to 0.80%, 1.24%, 0.99%, 1.15% and 1.37%, respectively, per annum of their average daily net assets. For the year ended August 31, 2011, voluntary reimbursements for the Institutional Class of International Institutional, Class A of International Large Cap, the Trust Class of Real Estate, the Investor Class of Small Cap Growth and the Trust Class of Small Cap Growth, amounted to $130,233, $4,750, $961,357, $109,893 and $7,030, respectively. This undertaking, which is terminable by Management upon notice to International Institutional, International Large Cap, Real Estate and Small Cap Growth, is in addition to the contractual undertaking as stated above. |
(3) | Period from October 8, 2008 (Commencement of Operations) to August 31, 2009. |
(4) | Period from April 6, 2009 (Commencement of Operations) to August 31, 2009. |
194
(5) | Expense limitation was 1.50% until April 13, 2009. |
(6) | Period from May 27, 2009 (Commencement of Operations) to August 31, 2009. |
(7) | From December 14, 2009 to December 20, 2009, the contractual expense limitation was 1.25% for Trust Class. In addition, Management voluntarily limited Operating Expenses of Trust Class to 1.00% per annum of average daily net assets for the same period. |
(8) | Period from December 21, 2009 (Commencement of Operations) to August 31, 2010. |
(9) | On December 21, 2009, Multi-Cap Opportunities' Trust Class was converted into the Fund's Institutional Class. The financial information of the Fund's Institutional Class includes the financial information of Trust Class shares. |
(10) | Period from March 8, 2010 (Commencement of Operations) to August 31, 2010. |
(11) | On April 19, 2010, Large Cap Value's Trust Class was converted into the Fund's Institutional Class. The financial information of the Fund's Institutional Class includes the financial information of Trust Class shares. From the period September 1, 2009 to April 18, 2010, there was $107,991 of expenses deferred by the Trust Class. From April 19, 2010 to August 31, 2010 there was $79,751 of expenses deferred by the Institutional Class. |
(12) | Prior to April 19, 2010, the contractual expense limitation was 1.00% for Trust Class. |
(13) | Period from May 10, 2010 (Commencement of Operations) to August 31, 2010. |
(14) | Period from June 21, 2010 (Commencement of Operations) to August 31, 2010. |
(15) | Period from December 20, 2010 (Commencement of Operations) to August 31, 2011. |
(16) | Period from March 2, 2011 (Commencement of Operations) to August 31, 2011. |
(17) | Period from June 30, 2011 (Commencement of Operations) to August 31, 2011. |
Neuberger Berman LLC ("Neuberger") is retained by Management to furnish it with investment recommendations and research information without added cost to the Funds. Several individuals who are officers and/or Trustees of the Trust are also employees of Neuberger and/or Management. | |
Management and Neuberger are indirect subsidiaries of Neuberger Berman Group LLC ("NBG," and together with its consolidated subsidiaries "NB Group"). The voting equity of NBG is owned by NBSH Acquisition, LLC ("NBSH"), which was formed to facilitate the May 4, 2009 management buyout of the businesses conducted by NB Group, and Lehman Brothers Holdings Inc. ("LBHI"). NBSH, which is owned by portfolio managers, members of the NB Group management team and certain of NB Group's key employees and senior professionals, owns approximately 52% of the voting equity of NBG, and LBHI and certain of its subsidiaries own the remaining 48% of the voting equity of NBG. | |
Each class of shares has a distribution agreement with Management. 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, except that a charge 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 are sold with no initial sales charge and a 1.00% contingent deferred sales charge ("CDSC") if shares are sold within one year after purchase. | |
On August 30, 2011, Management made a voluntary contribution to International in the amount of $2,721,097. This payment was made by Management in connection with an administrative matter affecting the timing of a trade. | |
For the year ended August 31, 2011, Management, acting as underwriter and broker-dealer, received net commissions from the sale of Class A and Class C shares and CDSCs from the redemptions of Class A and Class C shares as follows: |
195
Underwriter | Broker-Dealer | |||||||||||||||||
Net Commissions | CDSC | Net Commissions | CDSC | |||||||||||||||
Emerging Markets Equity Fund Class A | $ | 2,787 | $ | 1,800 | $ | — | $ | — | ||||||||||
Emerging Markets Equity Fund Class C | — | 615 | — | — | ||||||||||||||
Equity Income Fund Class A | 306,605 | 6,400 | — | — | ||||||||||||||
Equity Income Fund Class C | — | 47,966 | — | — | ||||||||||||||
Focus Fund Class A | 373 | — | — | — | ||||||||||||||
Focus Fund Class C | — | — | — | — | ||||||||||||||
Global Equity Fund Class A | — | — | — | — | ||||||||||||||
Global Equity Fund Class C | — | — | — | — | ||||||||||||||
Global Thematic Opportunities Fund Class A | — | — | — | — | ||||||||||||||
Global Thematic Opportunities Fund Class C | — | — | — | — | ||||||||||||||
Guardian Fund Class A | 2,997 | 2,381 | — | — | ||||||||||||||
Guardian Fund Class C | — | 227 | — | — | ||||||||||||||
International Fund Class A | 492 | — | — | — | ||||||||||||||
International Fund Class C | — | — | — | — | ||||||||||||||
International Large Cap Fund Class A | 1,772 | — | — | — | ||||||||||||||
International Large Cap Fund Class C | — | 1,536 | — | — | ||||||||||||||
Intrinsic Value Fund Class A | 12,234 | — | — | — | ||||||||||||||
Intrinsic Value Fund Class C | — | 812 | — | — | ||||||||||||||
Large Cap Disciplined Growth Fund Class A | 23,113 | — | — | — | ||||||||||||||
Large Cap Disciplined Growth Fund Class C | — | 6,412 | — | — | ||||||||||||||
Large Cap Value Fund Class A | — | — | — | — | ||||||||||||||
Large Cap Value Fund Class C | — | — | — | — | ||||||||||||||
Mid Cap Growth Fund Class A | 1,934 | — | — | — | ||||||||||||||
Mid Cap Growth Fund Class C | — | 245 | — | — | ||||||||||||||
Multi-Cap Opportunities Fund Class A | 280 | — | — | — | ||||||||||||||
Multi-Cap Opportunities Fund Class C | — | — | — | — | ||||||||||||||
Partners Fund Class A | 479 | — | — | — | ||||||||||||||
Partners Fund Class C | — | — | — | — | ||||||||||||||
Real Estate Fund Class A | 47,038 | — | — | — | ||||||||||||||
Real Estate Fund Class C | — | 4,160 | — | — | ||||||||||||||
Regency Fund Class A | 562 | — | — | — | ||||||||||||||
Regency Fund Class C | — | 25 | — | — | ||||||||||||||
Select Equities Fund Class A | 12,578 | 39,493 | — | — | ||||||||||||||
Select Equities Fund Class C | — | 2,373 | — | — | ||||||||||||||
Small Cap Growth Fund Class A | 296 | — | — | — | ||||||||||||||
Small Cap Growth Fund Class C | — | 72 | — | — | ||||||||||||||
Socially Responsive Fund Class A | 44,626 | — | — | — | ||||||||||||||
Socially Responsive Fund Class C | — | 3,220 | — | — |
During the year ended August 31, 2011, International Institutional engaged in purchase transactions with funds that have a common investment adviser (or affiliated investment adviser), common trustees/directors and/or common officers ("Interfund Transactions"). These Interfund Transactions complied with Rule 17a-7 under the 1940 Act and totaled $104,137,036. |
196
Note C—Securities Transactions:
During the year ended August 31, 2011, there were purchase and sale transactions of long term securities (excluding option contracts) as follows: |
(000's omitted) | Purchases | Sales | (000's omitted) | Purchases | Sales | ||||||||||||||
Emerging Markets Equity | $ | 150,923 | $ | 46,526 | Large Cap Disciplined Growth | $ | 748,342 | $ | 599,808 | ||||||||||
Equity Income | 1,239,599 | 194,209 | Large Cap Value | 4,131 | 2,777 | ||||||||||||||
Focus | 648,628 | 711,586 | Mid Cap Growth | 268,734 | 325,932 | ||||||||||||||
Genesis | 1,918,677 | 2,411,058 | Multi-Cap Opportunities | 97,925 | 63,883 | ||||||||||||||
Global Equity | 1,090 | 63 | Partners | 1,014,622 | 1,455,694 | ||||||||||||||
Global Thematic Opportunities | 26,699 | 1,565 | Real Estate | 275,032 | 77,369 | ||||||||||||||
Guardian | 365,843 | 388,056 | Regency | 26,602 | 103,880 | ||||||||||||||
International | 153,031 | 236,017 | Select Equities | 93,882 | 106,729 | ||||||||||||||
International Institutional | 272,605 | 118,820 | Small Cap Growth | 402,701 | 453,506 | ||||||||||||||
International Large Cap | 100,216 | 101,610 | Socially Responsive | 672,742 | 296,246 | ||||||||||||||
Intrinsic Value | 90,977 | 51,291 |
During the year ended August 31, 2011, no brokerage commissions on securities transactions were paid to affiliated brokers. |
Note D—Fund Share Transactions:
Share activity for the years ended August 31, 2011 and August 31, 2010 was as follows: |
For the Year Ended August 31, 2011 | For the Year Ended August 31, 2010 | |||||||||||||||||||||||||||||||||
(000's omitted) | Shares Sold | Shares Issued on Reinvestment of Dividends and Distributions | Shares Redeemed | Total | Shares Sold | Shares Issued on Reinvestment of Dividends and Distributions and Conversions | Shares Redeemed | Total | ||||||||||||||||||||||||||
Emerging Markets Equity: | ||||||||||||||||||||||||||||||||||
Institutional Class | 7,246 | 31 | (1,036 | ) | 6,241 | 275 | 21 | (11 | ) | 285 | ||||||||||||||||||||||||
Class A | 395 | 10 | (447 | ) | (42 | ) | 314 | 9 | (101 | ) | 222 | |||||||||||||||||||||||
Class C | 69 | — | (5 | ) | 64 | 8 | 1 | (15 | ) | (6 | ) | |||||||||||||||||||||||
Class R3 | — | — | — | — | 2 | — | — | 2 | (8) | |||||||||||||||||||||||||
Equity Income: | ||||||||||||||||||||||||||||||||||
Institutional Class | 58,460 | 734 | (7,030 | ) | 52,164 | 9,207 | 69 | (1,371 | ) | 7,905 | ||||||||||||||||||||||||
Class A | 46,755 | 1,040 | (15,009 | ) | 32,786 | 14,455 | 209 | (1,926 | ) | 12,738 | ||||||||||||||||||||||||
Class C | 17,321 | 143 | (1,025 | ) | 16,439 | 4,115 | 14 | (205 | ) | 3,924 | ||||||||||||||||||||||||
Class R3 | 14 | — | — | 14 | 3 | — | — | 3 | (8) |
197
For the Year Ended August 31, 2011 | For the Year Ended August 31, 2010 | |||||||||||||||||||||||||||||||||
(000's omitted) | Shares Sold | Shares Issued on Reinvestment of Dividends and Distributions | Shares Redeemed | Total | Shares Sold | Shares Issued on Reinvestment of Dividends and Distributions and Conversions | Shares Redeemed | Total | ||||||||||||||||||||||||||
Focus: | ||||||||||||||||||||||||||||||||||
Investor Class | 226 | 134 | (3,362 | ) | (3,002 | ) | 397 | 214 | (3,411 | ) | (2,800 | ) | ||||||||||||||||||||||
Trust Class | 132 | 7 | (444 | ) | (305 | ) | 278 | 14 | (637 | ) | (345 | ) | ||||||||||||||||||||||
Advisor Class | 107 | 5 | (246 | ) | (134 | ) | 150 | 11 | (421 | ) | (260 | ) | ||||||||||||||||||||||
Institutional Class | 274 | — | (16 | ) | 258 | 2 | — | — | 2 | (8) | ||||||||||||||||||||||||
Class A | 33 | — | (7 | ) | 26 | 2 | — | — | 2 | (8) | ||||||||||||||||||||||||
Class C | 26 | — | — | 26 | 3 | — | — | 3 | (8) | |||||||||||||||||||||||||
Genesis: | ||||||||||||||||||||||||||||||||||
Investor Class | 12,368 | — | (16,504 | ) | (4,136 | ) | 13,475 | — | (13,108 | ) | 367 | |||||||||||||||||||||||
Trust Class | 12,656 | — | (23,330 | ) | (10,674 | ) | 13,829 | — | (25,904 | ) | (12,075 | ) | ||||||||||||||||||||||
Advisor Class | 7,853 | — | (6,710 | ) | 1,143 | 6,994 | — | (6,531 | ) | 463 | ||||||||||||||||||||||||
Institutional Class | 30,647 | — | (23,578 | ) | 7,069 | 26,505 | — | (26,384 | ) | 121 | ||||||||||||||||||||||||
Global Equity: | ||||||||||||||||||||||||||||||||||
Institutional Class(11) | 90 | — | — | 90 | — | — | — | — | ||||||||||||||||||||||||||
Class A(11) | 7 | — | — | 7 | — | — | — | — | ||||||||||||||||||||||||||
Class C(11) | 5 | — | — | 5 | — | — | — | — | ||||||||||||||||||||||||||
Global Thematic Opportunities: | ||||||||||||||||||||||||||||||||||
Institutional Class(11) | 3,000 | — | (97 | ) | 2,903 | — | — | — | — | |||||||||||||||||||||||||
Class A(11) | 17 | — | — | 17 | — | — | — | — | ||||||||||||||||||||||||||
Class C(11) | 8 | — | — | 8 | — | — | — | — | ||||||||||||||||||||||||||
Guardian: | ||||||||||||||||||||||||||||||||||
Investor Class | 2,170 | 220 | (8,495 | ) | (6,105 | ) | 2,335 | 364 | (8,655 | ) | (5,956 | ) | ||||||||||||||||||||||
Trust Class | 2,774 | 26 | (2,157 | ) | 643 | 1,920 | 43 | (1,660 | ) | 303 | ||||||||||||||||||||||||
Advisor Class | 9 | — | (8 | ) | 1 | 8 | — | (15 | ) | (7 | ) | |||||||||||||||||||||||
Institutional Class | 2,374 | 2 | (425 | ) | 1,951 | 376 | — | (26 | ) | 350 | ||||||||||||||||||||||||
Class A | 882 | 2 | (304 | ) | 580 | 599 | 1 | (280 | ) | 320 | ||||||||||||||||||||||||
Class C | 60 | — | (8 | ) | 52 | 36 | — | (6 | ) | 30 | ||||||||||||||||||||||||
Class R3 | 36 | — | (8 | ) | 28 | — | — | — | — | |||||||||||||||||||||||||
International: | ||||||||||||||||||||||||||||||||||
Investor Class | 630 | 116 | (2,631 | ) | (1,885 | ) | 514 | 162 | (4,164 | ) | (3,488 | ) | ||||||||||||||||||||||
Trust Class | 943 | 78 | (3,889 | ) | (2,868 | ) | 1,147 | 125 | (4,551 | ) | (3,279 | ) | ||||||||||||||||||||||
Class A(9) | 41 | — | (1 | ) | 40 | — | — | — | — | |||||||||||||||||||||||||
Class C(9) | 3 | — | — | 3 | — | — | — | — | ||||||||||||||||||||||||||
International Institutional: | ||||||||||||||||||||||||||||||||||
Institutional Class | 18,262 | 372 | (2,147 | ) | 16,487 | 2,424 | 388 | (11,797 | ) | (8,985 | ) |
198
For the Year Ended August 31, 2011 | For the Year Ended August 31, 2010 | |||||||||||||||||||||||||||||||||
(000's omitted) | Shares Sold | Shares Issued on Reinvestment of Dividends and Distributions | Shares Redeemed | Total | Shares Sold | Shares Issued on Reinvestment of Dividends and Distributions and Conversions | Shares Redeemed | Total | ||||||||||||||||||||||||||
International Large Cap: | ||||||||||||||||||||||||||||||||||
Trust Class | 599 | 15 | (1,957 | ) | (1,343 | ) | 546 | 38 | (895 | ) | (311 | ) | ||||||||||||||||||||||
Institutional Class | 5,068 | 113 | (3,494 | ) | 1,687 | 7,475 | 118 | (563 | ) | 7,030 | ||||||||||||||||||||||||
Class A | 375 | 6 | (940 | ) | (559 | ) | 829 | 8 | (225 | ) | 612 | |||||||||||||||||||||||
Class C | 109 | — | (67 | ) | 42 | 149 | — | (15 | ) | 134 | ||||||||||||||||||||||||
Class R3 | 3 | — | (2 | ) | 1 | — | — | — | — | |||||||||||||||||||||||||
Intrinsic Value: | ||||||||||||||||||||||||||||||||||
Institutional Class | 3,398 | 317 | (1,135 | ) | 2,580 | 313 | 9,297 | (1,012 | ) | 8,598 | (7) | |||||||||||||||||||||||
Class A | 974 | 6 | (209 | ) | 771 | 72 | — | (5 | ) | 67 | (7) | |||||||||||||||||||||||
Class C | 635 | — | (93 | ) | 542 | 5 | — | — | 5 | (7) | ||||||||||||||||||||||||
Large Cap Disciplined Growth: | ||||||||||||||||||||||||||||||||||
Investor Class | 776 | — | (511 | ) | 265 | 490 | 1 | (594 | ) | (103 | ) | |||||||||||||||||||||||
Institutional Class | 36,192 | 101 | (15,937 | ) | 20,356 | 59,000 | 29 | (6,979 | ) | 52,050 | ||||||||||||||||||||||||
Class A | 4,132 | 2 | (4,029 | ) | 105 | 6,177 | — | (11,372 | ) | (5,195 | ) | |||||||||||||||||||||||
Class C | 1,446 | — | (1,405 | ) | 41 | 2,139 | — | (1,374 | ) | 765 | ||||||||||||||||||||||||
Class R3 | 50 | — | (17 | ) | 33 | — | — | — | — | |||||||||||||||||||||||||
Large Cap Value: | ||||||||||||||||||||||||||||||||||
Trust Class | — | — | — | — | — | (142 | )(5) | — | (142 | ) | ||||||||||||||||||||||||
Institutional Class | 186 | 1 | (67 | ) | 120 | — | 146 | (5) | — | 146 | (6) | |||||||||||||||||||||||
Class A(10) | 35 | — | — | 35 | — | — | — | — | ||||||||||||||||||||||||||
Class C(10) | 3 | — | — | 3 | — | — | — | — | ||||||||||||||||||||||||||
Mid Cap Growth: | ||||||||||||||||||||||||||||||||||
Investor Class | 1,005 | — | (4,213 | ) | (3,208 | ) | 847 | — | (4,497 | ) | (3,650 | ) | ||||||||||||||||||||||
Trust Class | 521 | — | (513 | ) | 8 | 823 | — | (572 | ) | 251 | ||||||||||||||||||||||||
Advisor Class | 244 | — | (122 | ) | 122 | 152 | — | (332 | ) | (180 | ) | |||||||||||||||||||||||
Institutional Class | 5,784 | — | (9,627 | ) | (3,843 | ) | 15,725 | — | (21,102 | ) | (5,377 | ) | ||||||||||||||||||||||
Class A | 1,018 | — | (554 | ) | 464 | 1,161 | — | (110 | ) | 1,051 | ||||||||||||||||||||||||
Class C | 24 | — | (3 | ) | 21 | 17 | — | (5 | ) | 12 | ||||||||||||||||||||||||
Class R3 | 45 | — | (21 | ) | 24 | — | — | — | — | |||||||||||||||||||||||||
Multi-Cap Opportunities: | ||||||||||||||||||||||||||||||||||
Trust Class | — | — | — | — | — | (211 | )(1) | (182 | ) | (393 | ) | |||||||||||||||||||||||
Institutional Class | 7,157 | 1 | (3,536 | ) | 3,622 | 6,158 | 215 | (1) | (499 | ) | 5,874 | (2) | ||||||||||||||||||||||
Class A | 62 | — | (78 | ) | (16 | ) | 60 | — | (23 | ) | 37 | (3) | ||||||||||||||||||||||
Class C | 16 | — | — | 16 | 8 | — | — | 8 | (3) |
199
For the Year Ended August 31, 2011 | For the Year Ended August 31, 2010 | |||||||||||||||||||||||||||||||||
(000's omitted) | Shares Sold | Shares Issued on Reinvestment of Dividends and Distributions | Shares Redeemed | Total | Shares Sold | Shares Issued on Reinvestment of Dividends and Distributions and Conversions | Shares Redeemed | Total | ||||||||||||||||||||||||||
Partners: | ||||||||||||||||||||||||||||||||||
Investor Class | 2,739 | 58 | (9,871 | ) | (7,074 | ) | 5,735 | 321 | (13,771 | ) | (7,715 | ) | ||||||||||||||||||||||
Trust Class | 1,844 | 2 | (12,048 | ) | (10,202 | ) | 5,401 | 211 | (10,556 | ) | (4,944 | ) | ||||||||||||||||||||||
Advisor Class | 2,376 | — | (7,065 | ) | (4,689 | ) | 4,494 | 157 | (7,578 | ) | (2,927 | ) | ||||||||||||||||||||||
Institutional Class | 3,437 | 18 | (2,179 | ) | 1,276 | 1,718 | 50 | (2,456 | ) | (688 | ) | |||||||||||||||||||||||
Class A | 138 | — | (65 | ) | 73 | 2 | — | — | 2 | (8) | ||||||||||||||||||||||||
Class C | 2 | — | — | 2 | 2 | — | — | 2 | (8) | |||||||||||||||||||||||||
Class R3 | — | — | — | — | 2 | — | — | 2 | (8) | |||||||||||||||||||||||||
Real Estate: | ||||||||||||||||||||||||||||||||||
Trust Class | 11,860 | 287 | (6,207 | ) | 5,940 | 8,592 | 198 | (4,549 | ) | 4,241 | ||||||||||||||||||||||||
Institutional Class | 9,119 | 55 | (1,478 | ) | 7,696 | 1,996 | 5 | (227 | ) | 1,774 | ||||||||||||||||||||||||
Class A | 3,727 | 17 | (721 | ) | 3,023 | 53 | — | — | 53 | (8) | ||||||||||||||||||||||||
Class C | 753 | 2 | (65 | ) | 690 | 13 | — | — | 13 | (8) | ||||||||||||||||||||||||
Class R3 | 30 | — | (3 | ) | 27 | 3 | — | — | 3 | (8) | ||||||||||||||||||||||||
Regency: | ||||||||||||||||||||||||||||||||||
Investor Class | 460 | 4 | (1,741 | ) | (1,277 | ) | 2,177 | 26 | (1,599 | ) | 604 | |||||||||||||||||||||||
Trust Class | 394 | 3 | (5,979 | ) | (5,582 | ) | 7,539 | 23 | (2,802 | ) | 4,760 | |||||||||||||||||||||||
Institutional Class | 221 | — | (33 | ) | 188 | 79 | — | (22 | ) | 57 | (4) | |||||||||||||||||||||||
Class A | 106 | — | (10 | ) | 96 | 3 | — | — | 3 | (8) | ||||||||||||||||||||||||
Class C | 7 | — | — | 7 | 3 | — | — | 3 | (8) | |||||||||||||||||||||||||
Class R3 | 10 | — | — | 10 | 3 | — | — | 3 | (8) | |||||||||||||||||||||||||
Select Equities: | ||||||||||||||||||||||||||||||||||
Institutional Class | 1,637 | 73 | (911 | ) | 799 | 2,067 | 22 | (678 | ) | 1,411 | ||||||||||||||||||||||||
Class A | 1,229 | 102 | (2,722 | ) | (1,391 | ) | 3,672 | 79 | (3,697 | ) | 54 | |||||||||||||||||||||||
Class C | 296 | 27 | (331 | ) | (8 | ) | 767 | 15 | (216 | ) | 566 | |||||||||||||||||||||||
Small Cap Growth: | ||||||||||||||||||||||||||||||||||
Investor Class | 313 | — | (2,240 | ) | (1,927 | ) | 4,760 | — | (10,205 | ) | (5,445 | ) | ||||||||||||||||||||||
Trust Class | 213 | — | (691 | ) | (478 | ) | 493 | — | (1,455 | ) | (962 | ) | ||||||||||||||||||||||
Advisor Class | 259 | — | (621 | ) | (362 | ) | 376 | — | (615 | ) | (239 | ) | ||||||||||||||||||||||
Institutional Class | 1,449 | — | (1,698 | ) | (249 | ) | 6,230 | — | (788 | ) | 5,442 | |||||||||||||||||||||||
Class A | 109 | — | (80 | ) | 29 | 41 | — | (15 | ) | 26 | ||||||||||||||||||||||||
Class C | 14 | — | (1 | ) | 13 | 6 | — | — | 6 | |||||||||||||||||||||||||
Class R3 | 1 | — | — | 1 | — | — | — | — |
200
For the Year Ended August 31, 2011 | For the Year Ended August 31, 2010 | ||||||||||||||||||||||||||||||||
(000's omitted) | Shares Sold | Shares Issued on Reinvestment of Dividends and Distributions | Shares Redeemed | Total | Shares Sold | Shares Issued on Reinvestment of Dividends and Distributions and Conversions | Shares Redeemed | Total | |||||||||||||||||||||||||
Socially Responsive: | |||||||||||||||||||||||||||||||||
Investor Class | 5,393 | 34 | (7,404 | ) | (1,977 | ) | 3,415 | 85 | (7,056 | ) | (3,556 | ) | |||||||||||||||||||||
Trust Class | 9,308 | 40 | (5,809 | ) | 3,539 | 5,954 | 85 | (4,734 | ) | 1,305 | |||||||||||||||||||||||
Institutional Class | 10,824 | 28 | (2,002 | ) | 8,850 | 4,654 | 19 | (713 | ) | 3,960 | |||||||||||||||||||||||
Class A | 4,062 | 5 | (421 | ) | 3,646 | 870 | 1 | (72 | ) | 799 | |||||||||||||||||||||||
Class C | 582 | — | (39 | ) | 543 | 244 | — | (13 | ) | 231 | |||||||||||||||||||||||
Class R3 | 624 | — | (58 | ) | 566 | 12 | — | — | 12 |
(1) | Approximately 215,000 Institutional Class shares were issued in connection with conversion of approximately 215,000 Trust Class shares (see Note G). |
(2) | On December 21, 2009, Multi-Cap Opportunities' Trust Class was converted into the Fund's Institutional Class. |
(3) | Period from December 21, 2009 (Commencement of Operations) to August 31, 2010. |
(4) | Period from March 8, 2010 (Commencement of Operations) to August 31, 2010. |
(5) | Approximately 146,000 Institutional Class shares were issued in connection with conversion of approximately 146,000 Trust class shares (see Note G). |
(6) | On April 19, 2010, Large Cap Value's Trust Class was converted into the Fund's Institutional Class. |
(7) | Period from May 10, 2010 (Commencement of Operations) to August 31, 2010 (see Note G). |
(8) | Period from June 21, 2010 (Commencement of Operations) to August 31, 2010. |
(9) | Period from December 20, 2010 (Commencement of Operations) to August 31, 2011. |
(10) | Period from March 2, 2011 (Commencement of Operations) to August 31, 2011. |
(11) | Period from June 30, 2011 (Commencement of Operations) to August 31, 2011. |
Note E—Lines of Credit:
At August 31, 2011, each Fund (except Global Equity, Global Thematic Opportunities, and Large Cap Value) was a participant in a single committed, unsecured $200,000,000 ($150,000,000 prior to September 17, 2010) 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 0.125% (0.15% prior to September 17, 2010) 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 $200,000,000 ($150,000,000 prior to September 17, 2010) at any |
201
particular time. There were no loans outstanding pursuant to this line of credit at August 31, 2011. During the year ended August 31, 2011, Multi-Cap Opportunities had borrowings under this line of credit for a period of seven days with the greatest amount borrowed being $20,311,315. On these borrowings, Multi-Cap Opportunities paid interest rates ranging from 1.49000% to 1.49125%. The total interest amount Multi-Cap Opportunities paid was $4,163, which is reflected in the Statements of Operations under the caption "Interest expense." | |
At August 31, 2011, International, International Institutional and International Large Cap were participants in a single uncommitted, secured $100,000,000 line of credit with State Street to be used only for temporary or emergency purposes or for leverage. Another investment company managed by Management also participates in this line of credit on the same terms. Interest is charged at LIBOR, or the overnight Federal Funds Rate, plus a spread to be determined at the time of borrowing. Because several mutual funds participate, there is no assurance that a Fund will have access to all or any part of the $100,000,000 at any particular time. International, International Institutional and International Large Cap had no loans outstanding pursuant to this line of credit at August 31, 2011. During the year ended August 31, 2011, International, International Institutional, and International Large Cap did not utilize this line of credit. |
Note F—Investments In Affiliates*:
Balance of Shares Held August 31, 2010 | Gross Purchases and Additions | Gross Sales and Reductions | Balance of Shares Held August 31, 2011 | Value August 31, 2011 | Income from Investments in Affiliated Issuers Included in Total Income | ||||||||||||||||||||
Genesis | |||||||||||||||||||||||||
Abaxis, Inc. | 1,090,300 | 125,000 | 57,200 | 1,158,100 | $ | 28,801,947 | $ | — | |||||||||||||||||
AG Growth International | 612,000 | 782,200 | 26,700 | 1,367,500 | 55,217,325 | 3,093,792 | |||||||||||||||||||
American Medical Systems Holdings** | 6,880,465 | — | 6,880,465 | — | — | — | |||||||||||||||||||
AmSurg Corp. | 1,832,334 | — | 128,800 | 1,703,534 | 38,550,974 | — | |||||||||||||||||||
AptarGroup Inc. | 6,465,600 | — | 409,700 | 6,055,900 | 305,701,832 | 4,785,192 | |||||||||||||||||||
Astec Industries** | 1,337,022 | — | 1,337,022 | — | — | — | |||||||||||||||||||
Blackbaud, Inc. | 4,122,103 | — | 357,700 | 3,764,403 | 94,260,651 | 1,841,748 | |||||||||||||||||||
Boston Beer | 1,019,019 | — | 51,600 | 967,419 | 78,428,658 | — | |||||||||||||||||||
Brookline Bancorp | 2,463,798 | 1,838,392 | 234,600 | 4,067,590 | 34,249,108 | 1,332,533 | |||||||||||||||||||
Capella Education** | 732,274 | 134,600 | 569,600 | 297,274 | 9,506,823 | — | |||||||||||||||||||
CARBO Ceramics | 2,167,200 | — | 464,600 | 1,702,600 | 272,671,390 | 1,598,116 | |||||||||||||||||||
Church & Dwight | 3,870,855 | 3,696,555 | 365,472 | 7,201,938 | 313,572,381 | 4,463,942 | |||||||||||||||||||
CLARCOR Inc. | 5,078,522 | — | 323,500 | 4,755,022 | 221,298,724 | 2,079,849 | |||||||||||||||||||
Compass Minerals International | 3,802,000 | — | 239,900 | 3,562,100 | 269,330,381 | 6,418,920 | |||||||||||||||||||
Computer Modelling Group | — | 1,900,200 | 14,700 | 1,885,500 | 25,125,881 | 487,449 | |||||||||||||||||||
Dionex Corp.** | 2,041,532 | — | 2,041,532 | — | — | — | |||||||||||||||||||
Exponent, Inc. | 1,164,735 | 32,000 | 29,800 | 1,166,935 | 49,314,673 | — | |||||||||||||||||||
Forrester Research | 1,118,353 | 288,900 | 32,200 | 1,375,053 | 46,339,286 | 3,795,759 | |||||||||||||||||||
Forward Air | 1,738,700 | 138,600 | 130,700 | 1,746,600 | 49,620,906 | 485,226 | |||||||||||||||||||
GT Advance Technologies | — | 7,453,400 | 404,300 | 7,049,100 | 86,069,511 | — |
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Balance of Shares Held August 31, 2010 | Gross Purchases and Additions | Gross Sales and Reductions | Balance of Shares Held August 31, 2011 | Value August 31, 2011 | Income from Investments in Affiliated Issuers Included in Total Income | ||||||||||||||||||||
Haemonetics Corp. | 2,690,600 | — | 166,700 | 2,523,900 | $ | 157,768,989 | $ | — | |||||||||||||||||
Harleysville Group | 1,446,219 | 603,611 | 59,700 | 1,990,130 | 57,057,027 | 4,954,170 | |||||||||||||||||||
Healthcare Services Group | 3,896,854 | 2,023,427 | 401,900 | 5,518,381 | 86,528,214 | 3,636,445 | |||||||||||||||||||
Hibbett Sports | 1,916,763 | 43,600 | 119,400 | 1,840,963 | 68,962,474 | — | |||||||||||||||||||
ICON PLC | 3,823,400 | — | 245,400 | 3,578,000 | 76,247,180 | — | |||||||||||||||||||
Industrea Ltd. | — | 28,084,842 | 202,300 | 27,882,542 | 40,236,828 | 80,018 | |||||||||||||||||||
J & J Snack Foods | 1,245,946 | — | 76,900 | 1,169,046 | 59,165,418 | 562,793 | |||||||||||||||||||
Landauer, Inc. | 854,945 | — | 353,195 | 501,750 | 25,870,230 | 1,645,120 | |||||||||||||||||||
Layne Christensen | 1,785,121 | — | 778,914 | 1,006,207 | 28,244,230 | — | |||||||||||||||||||
Lindsay Corp. | 1,254,550 | — | 73,000 | 1,181,550 | 73,492,410 | 421,690 | |||||||||||||||||||
Lufkin Industries | 1,613,320 | 170,300 | 162,400 | 1,621,220 | 100,888,521 | 840,660 | |||||||||||||||||||
Major Drilling Group International | 1,917,900 | 3,937,200 | 224,500 | 5,630,600 | 74,802,515 | 853,455 | |||||||||||||||||||
ManTech International | 2,426,100 | — | 419,400 | 2,006,700 | 75,231,183 | 933,366 | |||||||||||||||||||
Matthews International | 2,393,690 | — | 714,552 | 1,679,138 | 56,100,001 | 611,722 | |||||||||||||||||||
Meridian Bioscience | 2,124,997 | 195,000 | 128,600 | 2,191,397 | 40,540,845 | 1,645,189 | |||||||||||||||||||
MICROS Systems | 4,531,742 | — | 222,800 | 4,308,942 | 205,364,176 | — | |||||||||||||||||||
MWI Veterinary Supply | 1,141,729 | — | 50,300 | 1,091,429 | 80,765,746 | — | |||||||||||||||||||
Natural Gas Services Group | 225,000 | 622,300 | 17,500 | 829,800 | 10,779,102 | — | |||||||||||||||||||
New Jersey Resources** | 1,901,500 | 204,200 | 125,500 | 1,980,200 | 93,287,222 | 2,875,954 | |||||||||||||||||||
Oceaneering International** | 2,856,612 | 2,733,412 | 220,000 | 5,370,024 | 229,246,325 | 1,625,527 | |||||||||||||||||||
PetMed Express** | 2,502,838 | — | 2,502,838 | — | — | 522,905 | |||||||||||||||||||
PSS World Medical | 1,441,815 | 1,704,884 | 136,500 | 3,010,199 | 70,980,492 | — | |||||||||||||||||||
Raven Industries | 1,872,976 | — | 80,800 | 1,792,176 | 97,368,922 | 3,597,348 | |||||||||||||||||||
RLI Corp. | 1,199,907 | 189,639 | 30,500 | 1,359,046 | 85,918,888 | 11,052,767 | |||||||||||||||||||
Ruddick Corp. | 4,504,902 | 399,165 | 129,100 | 4,774,967 | 195,248,401 | 2,408,623 | |||||||||||||||||||
Safety Insurance Group | 158,973 | 882,361 | 16,900 | 1,024,434 | 39,952,926 | 1,795,830 | |||||||||||||||||||
Sensient Technologies | — | 2,686,114 | 103,500 | 2,582,614 | 93,878,019 | 1,347,091 | |||||||||||||||||||
Solera Holdings | 4,790,753 | — | 292,700 | 4,498,053 | 263,810,808 | 1,418,476 | |||||||||||||||||||
South Jersey Industries** | 1,336,000 | 179,044 | 88,200 | 1,426,844 | 73,525,271 | 2,060,652 | |||||||||||||||||||
State Street Institutional Treasury Plus Fund Institutional Class | — | 579,261,836 | 256,029,096 | 323,232,740 | 323,232,740 | 11,608 | |||||||||||||||||||
Surmodics, Inc.** | 1,349,655 | — | 1,349,655 | — | — | — | |||||||||||||||||||
United Stationers | 1,048,975 | 2,918,266 | 61,400 | 3,905,841 | 123,190,225 | 846,515 | |||||||||||||||||||
Wabtec Corp. | 2,892,200 | — | 192,300 | 2,699,900 | 164,396,911 | 166,364 | |||||||||||||||||||
Westamerica Bancorp | 2,121,843 | — | 126,600 | 1,995,243 | 84,618,256 | 2,988,890 | |||||||||||||||||||
Total | $ | 5,234,760,946 | $ | 79,285,704 |
* | Affiliated issuers, as defined in the 1940 Act, as amended. |
** | At August 31, 2011, the issuers of these securities were no longer affiliated with the Fund. |
203
Note G—Reorganization and Share Class Conversions:
On December 21, 2009, Trust Class shares of Multi-Cap Opportunities converted into Institutional Class shares of Multi-Cap Opportunities pursuant to a share class conversion ("Conversion"). The Conversion was accomplished by a tax-free conversion of 214,699 Trust Class shares of Multi-Cap Opportunities (valued at $1,799,703) into 214,699 Institutional Class shares of Multi-Cap Opportunities. The number of Institutional Class shares of Multi- Cap Opportunities outstanding immediately after the Conversion was 214,699. The net assets of Institutional Class shares of Multi-Cap Opportunities immediately after the Conversion were $1,799,703. | |
On April 19, 2010, Trust Class shares of Large Cap Value converted into Institutional Class shares of Large Cap Value pursuant to a share class conversion ("Conversion"). The Conversion was accomplished by a tax-free conversion of 145,505 Trust Class shares of Large Cap Value (valued at $1,400,420) into 145,505 Institutional Class shares of Large Cap Value. The number of Institutional Class shares of Large Cap Value outstanding immediately after the Conversion was 145,505. The net assets of Institutional Class shares of Large Cap Value immediately after the Conversion were $1,400,420. | |
On May 7, 2010, DJG Small Cap Value Fund L.P., an unregistered limited partnership ("DJG Fund"), transferred its assets to Intrinsic Value in exchange for Institutional Class shares of Intrinsic Value. The transfer was accomplished by a tax-free exchange of 9,296,816 Institutional Class shares of Intrinsic Value (valued at $92,968,164) for the partners capital of DJG Fund on May 7, 2010. DJG Fund's aggregate net assets on May 7, 2010 ($92,968,164, including $11,595,910 of net unrealized appreciation) were transferred to Intrinsic Value. The number of Institutional Class shares of Intrinsic Value outstanding immediately after the transfer was 9,296,816. The net assets of Institutional Class shares of Intrinsic Value immediately after the transfer were $92,968,164. |
Note H—Recent Accounting Pronouncement:
In May 2011, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2011-04 "Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards ("IFRS")." ASU No. 2011-04 amends ASC 820 to establish common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with GAAP and IFRS. It will not affect the fair valuation of the Funds' investments, but rather the quantitative and qualitative disclosures in the financial statements. ASU No. 2011-04 is effective for fiscal years beginning after December 15, 2011 and for interim periods within those fiscal years. Management is currently evaluating the impact of the update's adoption on the Funds' financial statement disclosures. |
Note I—Legal Matters:
In July 2010, Benjamin J. Gamoran filed a purported "Verified Derivative Complaint" in the Supreme Court of the State of New York naming, along with other defendants, the Trust as a nominal defendant. The suit alleged that the defendants are liable for losses related to International's investments in shares of certain companies that are alleged to have illegally offered or facilitated online gambling by individuals located in the United States and asserted purported state law derivative claims for breach of fiduciary duty, negligence, and waste. In August 2010, defendants removed the action to the United States District Court for the Southern District of New York. On May 11, 2011, the District Court dismissed the action without prejudice upon plaintiff's mid-suit demand on the Board. The Board has named a committee of non-involved Trustees to review the plaintiff's demand and to make a recommendation to the Board regarding how to appropriately respond. The committee has retained counsel to assist it. |
204
On August 24, 2011, the plaintiff filed a new complaint in Delaware federal court again naming the Trust as a nominal defendant. The new complaint alleges derivative claims that are similar to those in the July 2010 case and asserts some additional claims, including some purported class claims. | |
For the period ended August 31, 2011, the litigation, demand investigation and related fees recorded in the Statement of Operations were $493,533. The Trust, on behalf of International, has filed a claim under its insurance policy for reimbursement of certain litigation expenses. After the end of the fiscal period, as of September 22, 2011, the Trust, on behalf of International, has received $297,880 in insurance proceeds. Although there is no assurance as to whether or to what extent the insurance carrier will continue to pay on this claim, the Trust is hopeful that insurance proceeds may continue to offset a portion of its defensive litigation expenses. Costs of the demand investigation are not currently anticipated to be covered by the Trust's insurance policy. |
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206
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 $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.
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 | Voluntary Contribution from Management | |||||||||||||||||||||||||||||
Emerging Markets Equity Fund | |||||||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 15.61 | $ | 0.18 | $ | 0.40 | $ | 0.58 | $ | (0.03 | ) | $ | (0.36 | ) | $ | — | $ | (0.39 | ) | $ | — | ||||||||||||||||
8/31/2010 | $ | 14.05 | $ | 0.11 | $ | 2.51 | $ | 2.62 | $ | (0.06 | ) | $ | (1.00 | ) | $ | — | $ | (1.06 | ) | $ | — | ||||||||||||||||
Period from 10/8/2008^ to 8/31/2009 | $ | 10.00 | $ | 0.15 | $ | 4.16 | $ | 4.31 | $ | (0.26 | ) | $ | — | $ | — | $ | (0.26 | ) | $ | — | |||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 15.57 | $ | 0.03 | $ | 0.50 | $ | 0.53 | $ | — | $ | (0.36 | ) | $ | — | $ | (0.36 | ) | $ | — | |||||||||||||||||
8/31/2010 | $ | 14.02 | $ | 0.09 | $ | 2.50 | $ | 2.59 | $ | (0.04 | ) | $ | (1.00 | ) | $ | — | $ | (1.04 | ) | $ | — | ||||||||||||||||
Period from 10/8/2008^ to 8/31/2009 | $ | 10.00 | $ | 0.15 | $ | 4.13 | $ | 4.28 | $ | (0.26 | ) | $ | — | $ | — | $ | (0.26 | ) | $ | — | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 15.41 | $ | (0.02 | ) | $ | 0.43 | $ | 0.41 | $ | — | $ | (0.36 | ) | $ | — | $ | (0.36 | ) | $ | — | ||||||||||||||||
8/31/2010 | $ | 13.96 | $ | (0.10 | ) | $ | 2.55 | $ | 2.45 | $ | — | $ | (1.00 | ) | $ | — | $ | (1.00 | ) | $ | — | ||||||||||||||||
Period from 10/8/2008^ to 8/31/2009 | $ | 10.00 | $ | 0.08 | $ | 4.12 | $ | 4.20 | $ | (0.24 | ) | $ | — | $ | — | $ | (0.24 | ) | $ | — | |||||||||||||||||
Class R3 | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 15.42 | $ | (0.01 | ) | $ | 0.47 | $ | 0.46 | $ | — | $ | (0.36 | ) | $ | — | $ | (0.36 | ) | $ | — | ||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | 15.10 | $ | (0.00 | ) | $ | 0.32 | $ | 0.32 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Equity Income Fund | |||||||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 10.02 | $ | 0.33 | $ | 1.41 | $ | 1.74 | $ | (0.48 | ) | $ | — | $ | — | $ | (0.48 | ) | $ | — | |||||||||||||||||
8/31/2010 | $ | 8.74 | $ | 0.40 | $ | 1.22 | $ | 1.62 | $ | (0.34 | ) | $ | — | $ | — | $ | (0.34 | ) | $ | — | |||||||||||||||||
8/31/2009 | $ | 10.72 | $ | 0.34 | $ | (2.04 | ) | $ | (1.70 | ) | $ | (0.21 | ) | $ | (0.07 | ) | $ | — | $ | (0.28 | ) | $ | — | ||||||||||||||
8/31/2008‡‡ | $ | 10.52 | $ | 0.31 | $ | 0.40 | $ | 0.71 | $ | (0.27 | ) | $ | (0.24 | ) | $ | — | $ | (0.51 | ) | $ | — | ||||||||||||||||
Period from 11/2/2006^ to 8/31/2007‡‡ | $ | 10.00 | $ | 0.25 | $ | 0.52 | $ | 0.77 | $ | (0.25 | ) | $ | (0.00 | ) | $ | — | $ | (0.25 | ) | $ | — | ||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 9.99 | $ | 0.28 | $ | 1.41 | $ | 1.69 | $ | (0.44 | ) | $ | — | $ | — | $ | (0.44 | ) | $ | — | |||||||||||||||||
8/31/2010 | $ | 8.72 | $ | 0.36 | $ | 1.22 | $ | 1.58 | $ | (0.31 | ) | $ | — | $ | — | $ | (0.31 | ) | $ | — | |||||||||||||||||
8/31/2009 | $ | 10.72 | $ | 0.25 | $ | (1.99 | ) | $ | (1.74 | ) | $ | (0.19 | ) | $ | (0.07 | ) | $ | — | $ | (0.26 | ) | $ | — | ||||||||||||||
Period from 6/9/2008^ to 8/31/2008 | $ | 10.95 | $ | 0.07 | $ | (0.24 | ) | $ | (0.17 | ) | $ | (0.06 | ) | $ | — | $ | — | $ | (0.06 | ) | $ | — |
See Notes to Financial Highlights
207
Redemption Feesøø | 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 | ||||||||||||||||||||||||||
Emerging Markets Equity Fund | |||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | 0.00 | $ | 15.80 | 3.44 | % | $ | 107.7 | 1.26 | % | 1.26 | %‡ | 1.05 | % | 71 | % | |||||||||||||||||
8/31/2010 | $ | 0.00 | $ | 15.61 | 18.76 | % | $ | 9.0 | 1.26 | % | 1.26 | %‡ | .72 | % | 81 | % | |||||||||||||||||
Period from 10/8/2008^ to 8/31/2009 | $ | 0.00 | $ | 14.05 | 44.66 | %** | $ | 4.0 | 1.28 | %* | 1.28 | %‡* | 1.55 | %* | 84 | %** | |||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | 0.00 | $ | 15.74 | 3.16 | % | $ | 4.9 | 1.50 | % | 1.50 | %‡ | .19 | % | 71 | % | |||||||||||||||||
8/31/2010 | $ | 0.00 | $ | 15.57 | 18.58 | % | $ | 5.5 | 1.51 | % | 1.51 | %‡ | .61 | % | 81 | % | |||||||||||||||||
Period from 10/8/2008^ to 8/31/2009 | $ | 0.00 | $ | 14.02 | 44.38 | %** | $ | 1.8 | 1.53 | %* | 1.53 | %‡* | 1.31 | %* | 84 | %** | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | 0.00 | $ | 15.46 | 2.41 | % | $ | 1.1 | 2.26 | % | 2.26 | %‡ | (.12 | %) | 71 | % | |||||||||||||||||
8/31/2010 | $ | 0.00 | $ | 15.41 | 17.62 | % | $ | 0.2 | 2.26 | % | 2.26 | %‡ | (.63 | %) | 81 | % | |||||||||||||||||
Period from 10/8/2008^ to 8/31/2009 | $ | 0.00 | $ | 13.96 | 43.42 | %** | $ | 0.2 | 2.28 | %* | 2.28 | %‡* | .77 | %* | 84 | %** | |||||||||||||||||
Class R3 | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | 0.00 | $ | 15.52 | 2.73 | % | $ | 0.0 | 1.91 | % | 1.91 | %‡ | (.04 | %) | 71 | % | |||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | 0.00 | $ | 15.42 | 2.12 | %** | $ | 0.0 | 1.93 | %* | 1.93 | %‡* | (.09 | %)* | 81 | %Ø | |||||||||||||||||
Equity Income Fund | |||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 11.28 | 17.70 | % | $ | 701.7 | .80 | % | .80 | %§ | 2.93 | % | 22 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 10.02 | 18.81 | % | $ | 100.9 | .80 | % | .80 | %‡ | 4.09 | % | 29 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 8.74 | (15.54 | %) | $ | 18.9 | .80 | % | .80 | %‡ | 3.97 | % | 61 | % | |||||||||||||||||
8/31/2008‡‡ | $ | — | $ | 10.72 | 7.01 | %††† | $ | 5.6 | .97 | % | .96 | %‡ | 2.94 | % | 48 | % | |||||||||||||||||
Period from 11/2/2006^ to 8/31/2007‡‡ | $ | — | $ | 10.52 | 7.73 | %†††** | $ | 5.4 | 1.00 | %* | 1.00 | %‡* | 2.81 | %* | 26 | %** | |||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 11.24 | 17.27 | % | $ | 567.0 | 1.16 | % | 1.16 | %§ | 2.50 | % | 22 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 9.99 | 18.36 | % | $ | 176.6 | 1.16 | % | 1.16 | %‡ | 3.70 | % | 29 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 8.72 | (16.01 | %) | $ | 43.0 | 1.16 | % | 1.16 | %‡ | 3.15 | % | 61 | % | |||||||||||||||||
Period from 6/9/2008^ to 8/31/2008 | $ | — | $ | 10.72 | (1.57 | %)** | $ | 23.6 | 1.17 | %* | 1.16 | %‡* | 2.72 | %* | 48 | %Ø |
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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 | Tax Return of Capital | Total Distributions | Voluntary Contribution from Management | |||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 9.96 | $ | 0.20 | $ | 1.40 | $ | 1.60 | $ | (0.38 | ) | $ | — | $ | — | $ | (0.38 | ) | $ | — | |||||||||||||||||
8/31/2010 | $ | 8.70 | $ | 0.31 | $ | 1.20 | $ | 1.51 | $ | (0.25 | ) | $ | — | $ | — | $ | (0.25 | ) | $ | — | |||||||||||||||||
8/31/2009 | $ | 10.71 | $ | 0.20 | $ | (2.00 | ) | $ | (1.80 | ) | $ | (0.14 | ) | $ | (0.07 | ) | $ | — | $ | (0.21 | ) | $ | — | ||||||||||||||
Period from 6/9/2008^ to 8/31/2008 | $ | 10.95 | $ | 0.05 | $ | (0.24 | ) | $ | (0.19 | ) | $ | (0.05 | ) | $ | — | $ | — | $ | (0.05 | ) | $ | — | |||||||||||||||
Class R3 | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 9.99 | $ | 0.27 | $ | 1.39 | $ | 1.66 | $ | (0.41 | ) | $ | — | $ | — | $ | (0.41 | ) | $ | — | |||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | 10.06 | $ | 0.11 | $ | (0.12 | ) | $ | (0.01 | ) | $ | (0.06 | ) | $ | — | $ | — | $ | (0.06 | ) | $ | — | |||||||||||||||
Focus Fund | |||||||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 16.07 | $ | 0.13 | $ | 2.70 | $ | 2.83 | $ | (0.10 | ) | $ | — | $ | — | $ | (0.10 | ) | $ | — | |||||||||||||||||
8/31/2010 | $ | 16.59 | $ | 0.11 | $ | (0.50 | ) | $ | (0.39 | ) | $ | (0.13 | ) | $ | — | $ | — | $ | (0.13 | ) | $ | — | |||||||||||||||
8/31/2009 | $ | 24.78 | $ | 0.14 | $ | (6.00 | ) | $ | (5.86 | ) | $ | (0.14 | ) | $ | (2.19 | ) | $ | — | $ | (2.33 | ) | $ | — | ||||||||||||||
8/31/2008 | $ | 32.79 | $ | 0.15 | $ | (2.09 | ) | $ | (1.94 | ) | $ | (0.16 | ) | $ | (5.91 | ) | $ | — | $ | (6.07 | ) | $ | — | ||||||||||||||
8/31/2007 | $ | 34.30 | $ | 0.15 | $ | 3.33 | $ | 3.48 | $ | (0.15 | ) | $ | (4.84 | ) | $ | — | $ | (4.99 | ) | $ | — | ||||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 11.73 | $ | 0.06 | $ | 1.98 | $ | 2.04 | $ | (0.07 | ) | $ | — | $ | — | $ | (0.07 | ) | $ | — | |||||||||||||||||
8/31/2010 | $ | 12.14 | $ | 0.05 | $ | (0.36 | ) | $ | (0.31 | ) | $ | (0.10 | ) | $ | — | $ | — | $ | (0.10 | ) | $ | — | |||||||||||||||
8/31/2009 | $ | 18.18 | $ | 0.07 | $ | (4.40 | ) | $ | (4.33 | ) | $ | (0.10 | ) | $ | (1.61 | ) | $ | — | $ | (1.71 | ) | $ | — | ||||||||||||||
8/31/2008 | $ | 24.09 | $ | 0.06 | $ | (1.54 | ) | $ | (1.48 | ) | $ | (0.09 | ) | $ | (4.34 | ) | $ | — | $ | (4.43 | ) | $ | — | ||||||||||||||
8/31/2007 | $ | 25.19 | $ | 0.05 | $ | 2.46 | $ | 2.51 | $ | (0.04 | ) | $ | (3.57 | ) | $ | — | $ | (3.61 | ) | $ | — | ||||||||||||||||
Advisor Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 8.08 | $ | 0.03 | $ | 1.36 | $ | 1.39 | $ | (0.06 | ) | $ | — | $ | — | $ | (0.06 | ) | $ | — | |||||||||||||||||
8/31/2010 | $ | 8.40 | $ | 0.01 | $ | (0.24 | ) | $ | (0.23 | ) | $ | (0.09 | ) | $ | — | $ | — | $ | (0.09 | ) | $ | — | |||||||||||||||
8/31/2009 | $ | 12.64 | $ | 0.03 | $ | (3.07 | ) | $ | (3.04 | ) | $ | (0.09 | ) | $ | (1.11 | ) | $ | — | $ | (1.20 | ) | $ | — | ||||||||||||||
8/31/2008 | $ | 16.80 | $ | 0.02 | $ | (1.08 | ) | $ | (1.06 | ) | $ | (0.07 | ) | $ | (3.03 | ) | $ | — | $ | (3.10 | ) | $ | — | ||||||||||||||
8/31/2007 | $ | 17.57 | $ | 0.00 | $ | 1.71 | $ | 1.71 | $ | — | $ | (2.48 | ) | $ | — | $ | (2.48 | ) | $ | — | |||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 16.08 | $ | 0.21 | $ | 2.66 | $ | 2.87 | $ | (0.11 | ) | $ | — | $ | — | $ | (0.11 | ) | $ | — | |||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | 17.77 | $ | 0.06 | $ | (1.75 | ) | $ | (1.69 | ) | $ | — | $ | — | $ | — | $ | — | $ | — |
See Notes to Financial Highlights
209
Redemption Feesøø | 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 | ||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 11.18 | 16.31 | % | $ | 233.2 | 1.91 | % | 1.91 | %§ | 1.81 | % | 22 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 9.96 | 17.59 | % | $ | 44.0 | 1.91 | % | 1.91 | %‡ | 3.15 | % | 29 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 8.70 | (16.60 | %) | $ | 4.3 | 1.91 | % | 1.91 | %‡ | 2.46 | % | 61 | % | |||||||||||||||||
Period from 6/9/2008^ to 8/31/2008 | $ | — | $ | 10.71 | (1.72 | %)** | $ | 1.2 | 1.92 | %* | 1.90 | %‡* | 2.22 | %* | 48 | %Ø | |||||||||||||||||
Class R3 | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 11.24 | 16.92 | % | $ | 0.2 | 1.41 | % | 1.41 | %‡ | 2.44 | % | 22 | % | |||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | — | $ | 9.99 | (.04 | %)** | $ | 0.0 | 1.41 | %* | 1.41 | %‡* | 5.53 | %* | 29 | %Ø | |||||||||||||||||
Focus Fund | |||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 18.80 | 17.61 | % | $ | 503.8 | .97 | % | .97 | % | .65 | % | 113 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 16.07 | (2.39 | %) | $ | 478.8 | .97 | % | .97 | % | .61 | % | 89 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 16.59 | (21.06 | %) | $ | 540.9 | .99 | % | .99 | %‡ | .92 | % | 89 | % | |||||||||||||||||
8/31/2008 | $ | — | $ | 24.78 | (7.12 | %) | $ | 795.6 | .89 | % | .88 | %‡ | .56 | % | 90 | % | |||||||||||||||||
8/31/2007 | $ | — | $ | 32.79 | 10.71 | % | $ | 1,018.6 | .88 | % | .87 | %‡ | .44 | % | 53 | % | |||||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 13.70 | 17.39 | % | $ | 17.9 | 1.16 | % | 1.16 | % | .45 | % | 113 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 11.73 | (2.61 | %) | $ | 18.9 | 1.19 | % | 1.19 | % | .38 | % | 89 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 12.14 | (21.21 | %) | $ | 23.7 | 1.24 | % | 1.24 | %‡ | .65 | % | 89 | % | |||||||||||||||||
8/31/2008 | $ | — | $ | 18.18 | (7.37 | %) | $ | 41.5 | 1.11 | % | 1.10 | %‡ | .31 | % | 90 | % | |||||||||||||||||
8/31/2007 | $ | — | $ | 24.09 | 10.49 | % | $ | 72.3 | 1.08 | % | 1.07 | %‡ | .21 | % | 53 | % | |||||||||||||||||
Advisor Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 9.41 | 17.20 | % | $ | 7.8 | 1.32 | % | 1.32 | % | .30 | % | 113 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 8.08 | (2.83 | %) | $ | 7.7 | 1.42 | % | 1.42 | %§ | .15 | % | 89 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 8.40 | (21.45 | %) | $ | 10.2 | 1.50 | % | 1.50 | %‡ | .40 | % | 89 | % | |||||||||||||||||
8/31/2008 | $ | — | $ | 12.64 | (7.55 | %) | $ | 16.7 | 1.34 | % | 1.33 | %‡ | .12 | % | 90 | % | |||||||||||||||||
8/31/2007 | $ | — | $ | 16.80 | 10.23 | % | $ | 23.3 | 1.29 | % | 1.28 | %‡ | .02 | % | 53 | % | |||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 18.84 | 17.85 | % | $ | 4.9 | .75 | % | .75 | %‡ | 1.03 | % | 113 | % | |||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | — | $ | 16.08 | (9.51 | %)** | $ | 0.0 | .75 | %* | .75 | %‡* | 1.80 | %* | 89 | %Ø |
210
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 | Tax Return of Capital | Total Distributions | Voluntary Contribution from Management | |||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 11.73 | $ | 0.10 | $ | 1.95 | $ | 2.05 | $ | (0.11 | ) | $ | — | $ | — | $ | (0.11 | ) | $ | — | |||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | 12.97 | $ | 0.03 | $ | (1.27 | ) | $ | (1.24 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 8.07 | $ | (0.02 | ) | $ | 1.36 | $ | 1.34 | $ | (0.09 | ) | $ | — | $ | — | $ | (0.09 | ) | $ | — | ||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | 8.94 | $ | 0.01 | $ | (0.88 | ) | $ | (0.87 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Genesis Fund | |||||||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 26.44 | $ | 0.27 | $ | 7.57 | $ | 7.84 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
8/31/2010 | $ | 24.39 | $ | (0.03 | ) | $ | 2.08 | $ | 2.05 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
8/31/2009 | $ | 34.95 | $ | (0.01 | ) | $ | (9.23 | ) | $ | (9.24 | ) | $ | — | $ | (1.32 | ) | $ | (0.00 | ) | $ | (1.32 | ) | $ | — | |||||||||||||
8/31/2008 | $ | 37.55 | $ | (0.07 | ) | $ | 3.53 | $ | 3.46 | $ | (0.16 | ) | $ | (5.90 | ) | $ | — | $ | (6.06 | ) | $ | — | |||||||||||||||
8/31/2007 | $ | 34.92 | $ | 0.18 | @@ | $ | 5.58 | @@ | $ | 5.76 | $ | (0.46 | ) | $ | (2.67 | ) | $ | — | $ | (3.13 | ) | $ | — | ||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 37.92 | $ | 0.35 | $ | 10.86 | $ | 11.21 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
8/31/2010 | $ | 35.00 | $ | (0.07 | ) | $ | 2.99 | $ | 2.92 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
8/31/2009 | $ | 50.16 | $ | (0.03 | ) | $ | (13.24 | ) | $ | (13.27 | ) | $ | — | $ | (1.89 | ) | $ | (0.00 | ) | $ | (1.89 | ) | $ | — | |||||||||||||
8/31/2008 | $ | 53.69 | $ | (0.14 | ) | $ | 5.12 | $ | 4.98 | $ | (0.08 | ) | $ | (8.43 | ) | $ | — | $ | (8.51 | ) | $ | — | |||||||||||||||
8/31/2007 | $ | 49.89 | $ | 0.24 | @@ | $ | 7.96 | @@ | $ | 8.20 | $ | (0.60 | ) | $ | (3.80 | ) | $ | — | $ | (4.40 | ) | $ | — | ||||||||||||||
Advisor Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 22.00 | $ | 0.12 | $ | 6.31 | $ | 6.43 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
8/31/2010 | $ | 20.35 | $ | (0.10 | ) | $ | 1.75 | $ | 1.65 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
8/31/2009 | $ | 29.25 | $ | (0.07 | ) | $ | (7.73 | ) | $ | (7.80 | ) | $ | — | $ | (1.10 | ) | $ | (0.00 | ) | $ | (1.10 | ) | $ | — | |||||||||||||
8/31/2008 | $ | 31.43 | $ | (0.16 | ) | $ | 2.98 | $ | 2.82 | $ | (0.07 | ) | $ | (4.93 | ) | $ | — | $ | (5.00 | ) | $ | — | |||||||||||||||
8/31/2007 | $ | 29.10 | $ | 0.06 | @@ | $ | 4.67 | @@ | $ | 4.73 | $ | (0.18 | ) | $ | (2.22 | ) | $ | — | $ | (2.40 | ) | $ | — | ||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 36.56 | $ | 0.45 | $ | 10.47 | $ | 10.92 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
8/31/2010 | $ | 33.64 | $ | 0.04 | $ | 2.88 | $ | 2.92 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
8/31/2009 | $ | 48.09 | $ | 0.06 | $ | (12.70 | ) | $ | (12.64 | ) | $ | — | $ | (1.81 | ) | $ | (0.00 | ) | $ | (1.81 | ) | $ | — | ||||||||||||||
8/31/2008 | $ | 51.52 | $ | (0.01 | ) | $ | 4.90 | $ | 4.89 | $ | (0.23 | ) | $ | (8.09 | ) | $ | — | $ | (8.32 | ) | $ | — | |||||||||||||||
8/31/2007 | $ | 47.95 | $ | 0.32 | @@ | $ | 7.68 | @@ | $ | 8.00 | $ | (0.78 | ) | $ | (3.65 | ) | $ | — | $ | (4.43 | ) | $ | — |
See Notes to Financial Highlights
211
Redemption Feesøø | 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 | ||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 13.67 | 17.43 | % | $ | 0.4 | 1.11 | % | 1.11 | %‡ | .66 | % | 113 | % | |||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | — | $ | 11.73 | (9.56 | %)** | $ | 0.0 | 1.11 | %* | 1.11 | %‡* | 1.44 | %* | 89 | %Ø | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 9.32 | 16.62 | % | $ | 0.3 | 1.86 | % | 1.86 | %‡ | (.16 | %) | 113 | % | |||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | — | $ | 8.07 | (9.73 | %)** | $ | 0.0 | 1.86 | %* | 1.86 | %‡* | .69 | %* | 89 | %Ø | |||||||||||||||||
Genesis Fund | |||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 34.28 | 29.65 | % | $ | 2,157.7 | 1.05 | % | 1.05 | % | .81 | % | 18 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 26.44 | 8.41 | % | $ | 1,773.6 | 1.06 | % | 1.06 | % | (.11 | %) | 16 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 24.39 | (25.72 | %) | $ | 1,626.8 | 1.08 | % | 1.08 | %‡ | (.04 | %) | 12 | % | |||||||||||||||||
8/31/2008 | $ | — | $ | 34.95 | 10.18 | % | $ | 2,386.8 | 1.03 | % | 1.02 | %‡ | (.20 | %) | 18 | %## | |||||||||||||||||
8/31/2007 | $ | — | $ | 37.55 | 17.51 | % | $ | 1,997.2 | 1.03 | % | 1.02 | %‡ | .51 | %@@ | 25 | % | |||||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 49.13 | 29.56 | % | $ | 3,436.5 | 1.13 | % | 1.13 | % | .74 | % | 18 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 37.92 | 8.34 | % | $ | 3,057.6 | 1.12 | % | 1.12 | % | (.17 | %) | 16 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 35.00 | (25.73 | %) | $ | 3,244.1 | 1.12 | % | 1.12 | %‡ | (.09 | %) | 12 | % | |||||||||||||||||
8/31/2008 | $ | — | $ | 50.16 | 10.22 | % | $ | 4,799.6 | 1.09 | % | 1.09 | %‡ | (.27 | %) | 18 | %## | |||||||||||||||||
8/31/2007 | $ | — | $ | 53.69 | 17.41 | % | $ | 4,985.5 | 1.10 | % | 1.09 | %‡ | .48 | %@@ | 25 | % | |||||||||||||||||
Advisor Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 28.43 | 29.23 | % | $ | 601.3 | 1.40 | % | 1.40 | % | .43 | % | 18 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 22.00 | 8.11 | % | $ | 440.2 | 1.38 | % | 1.38 | % | (.42 | %) | 16 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 20.35 | (25.95 | %) | $ | 397.9 | 1.38 | % | 1.38 | %‡ | (.34 | %) | 12 | % | |||||||||||||||||
8/31/2008 | $ | — | $ | 29.25 | 9.89 | % | $ | 596.8 | 1.35 | % | 1.34 | %‡ | (.53 | %) | 18 | %## | |||||||||||||||||
8/31/2007 | $ | — | $ | 31.43 | 17.14 | % | $ | 547.2 | 1.35 | % | 1.35 | %‡ | .20 | %@@ | 25 | % | |||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 47.48 | 29.87 | % | $ | 4,975.0 | .87 | % | .87 | %‡ | .97 | % | 18 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 36.56 | 8.68 | % | $ | 3,571.8 | .85 | % | .85 | %‡ | .11 | % | 16 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 33.64 | (25.55 | %) | $ | 3,283.0 | .85 | % | .85 | %‡ | .18 | % | 12 | % | |||||||||||||||||
8/31/2008 | $ | — | $ | 48.09 | 10.48 | % | $ | 4,781.4 | .84 | % | .84 | %‡ | (.03 | %) | 18 | %## | |||||||||||||||||
8/31/2007 | $ | — | $ | 51.52 | 17.73 | % | $ | 3,307.5 | .85 | % | .84 | %‡ | .65 | %@@ | 25 | % |
212
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 | Tax Return of Capital | Total Distributions | Voluntary Contribution from Management | |||||||||||||||||||||||||||||
Global Equity Fund | |||||||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||
Period from 6/30/2011^ to 8/31/2011 | $ | 10.00 | $ | (0.00 | ) | $ | (0.90 | ) | $ | (0.90 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
Period from 6/30/2011^ to 8/31/2011 | $ | 10.00 | $ | (0.01 | ) | $ | (0.90 | ) | $ | (0.91 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||
Period from 6/30/2011^ to 8/31/2011 | $ | 10.00 | $ | (0.02 | ) | $ | (0.90 | ) | $ | (0.92 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Global Thematic Opportunities Fund | |||||||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||
Period from 6/30/2011^ to 8/31/2011 | $ | 10.00 | $ | (0.00 | ) | $ | (0.56 | ) | $ | (0.56 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
Period from 6/30/2011^ to 8/31/2011 | $ | 10.00 | $ | (0.01 | ) | $ | (0.55 | ) | $ | (0.56 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||
Period from 6/30/2011^ to 8/31/2011 | $ | 10.00 | $ | (0.02 | ) | $ | (0.56 | ) | $ | (0.58 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Guardian Fund | |||||||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 11.98 | $ | 0.11 | $ | 2.45 | $ | 2.56 | $ | (0.05 | ) | $ | — | $ | — | $ | (0.05 | ) | $ | — | |||||||||||||||||
8/31/2010 | $ | 11.15 | $ | 0.05 | $ | 0.84 | $ | 0.89 | $ | (0.06 | ) | $ | — | $ | — | $ | (0.06 | ) | $ | — | |||||||||||||||||
8/31/2009 | $ | 16.58 | $ | 0.07 | $ | (4.15 | ) | $ | (4.08 | ) | $ | (0.05 | ) | $ | (1.30 | ) | $ | — | $ | (1.35 | ) | $ | — | ||||||||||||||
8/31/2008 | $ | 19.89 | $ | 0.11 | $ | (1.05 | ) | $ | (0.94 | ) | $ | (0.13 | ) | $ | (2.24 | ) | $ | — | $ | (2.37 | ) | $ | — | ||||||||||||||
8/31/2007 | $ | 18.64 | $ | 0.14 | $ | 2.49 | $ | 2.63 | $ | (0.07 | ) | $ | (1.31 | ) | $ | — | $ | (1.38 | ) | $ | — | ||||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 9.38 | $ | 0.06 | $ | 1.92 | $ | 1.98 | $ | (0.04 | ) | $ | — | $ | — | $ | (0.04 | ) | $ | — | |||||||||||||||||
8/31/2010 | $ | 8.75 | $ | 0.02 | $ | 0.66 | $ | 0.68 | $ | (0.05 | ) | $ | — | $ | — | $ | (0.05 | ) | $ | — | |||||||||||||||||
8/31/2009 | $ | 13.02 | $ | 0.04 | $ | (3.25 | ) | $ | (3.21 | ) | $ | (0.04 | ) | $ | (1.02 | ) | $ | — | $ | (1.06 | ) | $ | — | ||||||||||||||
8/31/2008 | $ | 15.64 | $ | 0.06 | $ | (0.82 | ) | $ | (0.76 | ) | $ | (0.10 | ) | $ | (1.76 | ) | $ | — | $ | (1.86 | ) | $ | — | ||||||||||||||
8/31/2007 | $ | 14.66 | $ | 0.07 | $ | 1.98 | $ | 2.05 | $ | (0.04 | ) | $ | (1.03 | ) | $ | — | $ | (1.07 | ) | $ | — |
See Notes to Financial Highlights
213
Redemption Feesøø | 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 | ||||||||||||||||||||||||||
Global Equity Fund | |||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
Period from 6/30/2011^ to 8/31/2011 | $ | — | $ | 9.10 | (9.00 | %)** | $ | 0.8 | 1.15 | %* | 1.15 | %‡* | (.20 | %)* | 8 | %** | |||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
Period from 6/30/2011^ to 8/31/2011 | $ | — | $ | 9.09 | (9.10 | %)** | $ | 0.1 | 1.51 | %* | 1.51 | %‡* | (.53 | %)* | 8 | %** | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
Period from 6/30/2011^ to 8/31/2011 | $ | — | $ | 9.08 | (9.20 | %)** | $ | 0.0 | 2.26 | %* | 2.26 | %‡* | (1.31 | %)* | 8 | %** | |||||||||||||||||
Global Thematic Opportunities Fund | |||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
Period from 6/30/2011^ to 8/31/2011 | $ | — | $ | 9.44 | (5.60 | %)** | $ | 27.4 | 1.25 | %* | 1.25 | %‡* | (.14 | %)* | 11 | %** | |||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
Period from 6/30/2011^ to 8/31/2011 | $ | — | $ | 9.44 | (5.60 | %)** | $ | 0.2 | 1.61 | %* | 1.61 | %‡* | (.50 | %)* | 11 | %** | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
Period from 6/30/2011^ to 8/31/2011 | $ | — | $ | 9.42 | (5.80 | %)** | $ | 0.1 | 2.36 | %* | 2.36 | %‡* | (1.32 | %)* | 11 | %** | |||||||||||||||||
Guardian Fund | |||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 14.49 | 21.35 | % | $ | 962.6 | .92 | % | .92 | % | .74 | % | 32 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 11.98 | 7.99 | % | $ | 869.2 | .95 | % | .95 | % | .40 | % | 36 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 11.15 | (22.65 | %) | $ | 875.5 | .97 | % | .97 | %‡ | .67 | % | 29 | % | |||||||||||||||||
8/31/2008 | $ | — | $ | 16.58 | (5.38 | %) | $ | 1,252.9 | .89 | % | .88 | %‡ | .59 | % | 42 | % | |||||||||||||||||
8/31/2007 | $ | — | $ | 19.89 | 14.48 | % | $ | 1,441.6 | .88 | % | .87 | %‡ | .69 | % | 20 | % | |||||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 11.32 | 21.08 | % | $ | 102.6 | 1.09 | % | 1.09 | % | .55 | % | 32 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 9.38 | 7.75 | % | $ | 79.0 | 1.12 | % | 1.12 | % | .23 | % | 36 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 8.75 | (22.74 | %) | $ | 71.0 | 1.14 | % | 1.14 | %‡ | .50 | % | 29 | % | |||||||||||||||||
8/31/2008 | $ | — | $ | 13.02 | (5.52 | %) | $ | 103.6 | 1.07 | % | 1.06 | %‡ | .41 | % | 42 | % | |||||||||||||||||
8/31/2007 | $ | — | $ | 15.64 | 14.30 | % | $ | 122.7 | 1.05 | % | 1.05 | %‡ | .47 | % | 20 | % |
214
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 | Tax Return of Capital | Total Distributions | Voluntary Contribution from Management | |||||||||||||||||||||||||||||
Advisor Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 10.59 | $ | 0.02 | $ | 2.16 | $ | 2.18 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
8/31/2010 | $ | 9.87 | $ | (0.02 | ) | $ | 0.75 | $ | 0.73 | $ | (0.01 | ) | $ | — | $ | — | $ | (0.01 | ) | $ | — | ||||||||||||||||
8/31/2009 | $ | 14.65 | $ | 0.01 | $ | (3.65 | ) | $ | (3.64 | ) | $ | (0.00 | ) | $ | (1.14 | ) | $ | — | $ | (1.14 | ) | $ | — | ||||||||||||||
8/31/2008 | $ | 17.55 | $ | (0.01 | ) | $ | (0.92 | ) | $ | (0.93 | ) | $ | — | $ | (1.97 | ) | $ | — | $ | (1.97 | ) | $ | — | ||||||||||||||
8/31/2007 | $ | 16.48 | $ | 0.01 | $ | 2.22 | $ | 2.23 | $ | — | $ | (1.16 | ) | $ | — | $ | (1.16 | ) | $ | — | |||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 12.01 | $ | 0.12 | $ | 2.47 | $ | 2.59 | $ | (0.08 | ) | $ | — | $ | — | $ | (0.08 | ) | $ | — | |||||||||||||||||
8/31/2010 | $ | 11.16 | $ | 0.08 | $ | 0.84 | $ | 0.92 | $ | (0.07 | ) | $ | — | $ | — | $ | (0.07 | ) | $ | — | |||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | 10.39 | $ | 0.03 | $ | 0.74 | $ | 0.77 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 9.36 | $ | 0.06 | $ | 1.91 | $ | 1.97 | $ | (0.05 | ) | $ | — | $ | — | $ | (0.05 | ) | $ | — | |||||||||||||||||
8/31/2010 | $ | 8.75 | $ | 0.02 | $ | 0.66 | $ | 0.68 | $ | (0.07 | ) | $ | — | $ | — | $ | (0.07 | ) | $ | — | |||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | 8.15 | $ | 0.01 | $ | 0.59 | $ | 0.60 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 10.51 | $ | (0.04 | ) | $ | 2.15 | $ | 2.11 | $ | (0.02 | ) | $ | — | $ | — | $ | (0.02 | ) | $ | — | ||||||||||||||||
8/31/2010 | $ | 9.86 | $ | (0.06 | ) | $ | 0.76 | $ | 0.70 | $ | (0.05 | ) | $ | — | $ | — | $ | (0.05 | ) | $ | — | ||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | 9.21 | $ | 0.00 | $ | 0.65 | $ | 0.65 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Class R3 | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 10.57 | $ | 0.04 | $ | 2.16 | $ | 2.20 | $ | (0.05 | ) | $ | — | $ | — | $ | (0.05 | ) | $ | — | |||||||||||||||||
8/31/2010 | $ | 9.88 | $ | (0.00 | ) | $ | 0.74 | $ | 0.74 | $ | (0.05 | ) | $ | — | $ | — | $ | (0.05 | ) | $ | — | ||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | 9.21 | $ | 0.01 | $ | 0.66 | $ | 0.67 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
International Fund | |||||||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 14.51 | $ | 0.15 | $ | 2.06 | $ | 2.21 | $ | (0.19 | ) | $ | — | $ | — | $ | (0.19 | ) | $ | 0.15 | |||||||||||||||||
8/31/2010 | $ | 13.58 | $ | 0.13 | $ | 0.99 | $ | 1.12 | $ | (0.14 | ) | $ | — | $ | (0.05 | ) | $ | (0.19 | ) | $ | — | ||||||||||||||||
8/31/2009 | $ | 17.64 | $ | 0.16 | $ | (3.86 | ) | $ | (3.70 | ) | $ | (0.36 | ) | $ | — | $ | — | $ | (0.36 | ) | $ | — | |||||||||||||||
8/31/2008 | $ | 25.68 | $ | 0.38 | $ | (4.26 | ) | $ | (3.88 | ) | $ | (0.80 | ) | $ | (3.36 | ) | $ | — | $ | (4.16 | ) | $ | — | ||||||||||||||
8/31/2007 | $ | 24.23 | $ | 0.26 | $ | 3.81 | $ | 4.07 | $ | (0.29 | ) | $ | (2.33 | ) | $ | — | $ | (2.62 | ) | $ | — |
See Notes to Financial Highlights
215
Redemption Feesøø | 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 | ||||||||||||||||||||||||||
Advisor Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 12.77 | 20.59 | % | $ | 0.6 | 1.50 | % | 1.50 | %§ | .15 | % | 32 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 10.59 | 7.38 | % | $ | 0.5 | 1.50 | % | 1.50 | %‡ | (.16 | %) | 36 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 9.87 | (23.05 | %) | $ | 0.5 | 1.50 | % | 1.50 | %‡ | .13 | % | 29 | % | |||||||||||||||||
8/31/2008 | $ | — | $ | 14.65 | (5.96 | %) | $ | 0.9 | 1.50 | % | 1.50 | %‡ | (.04 | %) | 42 | % | |||||||||||||||||
8/31/2007 | $ | — | $ | 17.55 | 13.82 | % | $ | 1.1 | 1.50 | % | 1.50 | %‡ | .04 | % | 20 | % | |||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 14.52 | 21.51 | % | $ | 33.5 | .75 | % | .75 | %§ | .77 | % | 32 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 12.01 | 8.22 | % | $ | 4.3 | .75 | % | .75 | %‡ | .65 | % | 36 | % | |||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | — | $ | 11.16 | 7.41 | %** | $ | 0.1 | .75 | %* | .75 | %‡* | 1.12 | %* | 29 | %Ø | |||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 11.28 | 21.06 | % | $ | 10.8 | 1.11 | % | 1.11 | %‡ | .51 | % | 32 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 9.36 | 7.72 | % | $ | 3.5 | 1.11 | % | 1.11 | %‡ | .23 | % | 36 | % | |||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | — | $ | 8.75 | 7.36 | %** | $ | 0.5 | 1.11 | %* | 1.11 | %‡* | .41 | %* | 29 | %Ø | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 12.60 | 20.11 | % | $ | 1.1 | 1.86 | % | 1.86 | %‡ | (.28 | %) | 32 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 10.51 | 7.08 | % | $ | 0.4 | 1.86 | % | 1.86 | %‡ | (.51 | %) | 36 | % | |||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | — | $ | 9.86 | 7.06 | %** | $ | 0.1 | 1.86 | %* | 1.86 | %‡* | .01 | %* | 29 | %Ø | |||||||||||||||||
Class R3 | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 12.72 | 20.79 | % | $ | 0.4 | 1.36 | % | 1.36 | %‡ | .28 | % | 32 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 10.57 | 7.51 | % | $ | 0.1 | 1.36 | % | 1.36 | %‡ | (.02 | %) | 36 | % | |||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | — | $ | 9.88 | 7.27 | %** | $ | 0.1 | 1.36 | %* | 1.36 | %‡* | .51 | %* | 29 | %Ø | |||||||||||||||||
International Fund | |||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | 0.00 | $ | 16.68 | 16.28 | % | $ | 166.9 | 1.45 | % | 1.45 | %‡ | .90 | % | 45 | % | |||||||||||||||||
8/31/2010 | $ | 0.00 | $ | 14.51 | 8.26 | % | $ | 172.5 | 1.40 | % | 1.40 | %‡ | .93 | % | 61 | % | |||||||||||||||||
8/31/2009 | $ | 0.00 | $ | 13.58 | (20.42 | %) | $ | 208.8 | 1.40 | % | 1.40 | %‡ | 1.38 | % | 81 | % | |||||||||||||||||
8/31/2008 | $ | 0.00 | $ | 17.64 | (17.11 | %) | $ | 405.2 | 1.26 | % | 1.25 | %‡ | 1.80 | % | 53 | % | |||||||||||||||||
8/31/2007 | $ | 0.00 | $ | 25.68 | 17.44 | % | $ | 690.6 | 1.25 | % | 1.23 | %‡ | 1.02 | % | 42 | % |
216
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 | Tax Return of Capital | Total Distributions | Voluntary Contribution from Management | |||||||||||||||||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 16.08 | $ | 0.12 | $ | 2.27 | $ | 2.39 | $ | (0.17 | ) | $ | — | $ | — | $ | (0.17 | ) | $ | 0.17 | |||||||||||||||||
8/31/2010 | $ | 15.03 | $ | 0.13 | $ | 1.10 | $ | 1.23 | $ | (0.13 | ) | $ | — | $ | (0.05 | ) | $ | (0.18 | ) | $ | — | ||||||||||||||||
8/31/2009 | $ | 19.43 | $ | 0.17 | $ | (4.24 | ) | $ | (4.07 | ) | $ | (0.33 | ) | $ | — | $ | — | $ | (0.33 | ) | $ | — | |||||||||||||||
8/31/2008 | $ | 28.18 | $ | 0.39 | $ | (4.69 | ) | $ | (4.30 | ) | $ | (0.77 | ) | $ | (3.68 | ) | $ | — | $ | (4.45 | ) | $ | — | ||||||||||||||
8/31/2007 | $ | 26.52 | $ | 0.27 | $ | 4.16 | $ | 4.43 | $ | (0.24 | ) | $ | (2.53 | ) | $ | — | $ | (2.77 | ) | $ | — | ||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
Period from 12/20/2010^ to 8/31/2011 | $ | 18.58 | $ | 0.07 | $ | (0.31 | ) | $ | (0.24 | ) | $ | — | $ | — | $ | — | $ | — | $ | 0.17 | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||
Period from 12/20/2010^ to 8/31/2011 | $ | 18.58 | $ | 0.06 | $ | (0.40 | ) | $ | (0.34 | ) | $ | — | $ | — | $ | — | $ | — | $ | 0.17 | |||||||||||||||||
International Institutional Fund | |||||||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 8.10 | $ | 0.16 | $ | 1.11 | $ | 1.27 | $ | (0.17 | ) | $ | — | $ | — | $ | (0.17 | ) | $ | — | |||||||||||||||||
8/31/2010 | $ | 7.53 | $ | 0.12 | $ | 0.56 | $ | 0.68 | $ | (0.11 | ) | $ | — | $ | — | $ | (0.11 | ) | $ | — | |||||||||||||||||
8/31/2009 | $ | 9.84 | $ | 0.13 | $ | (2.17 | ) | $ | (2.04 | ) | $ | (0.27 | ) | $ | — | $ | — | $ | (0.27 | ) | $ | — | |||||||||||||||
8/31/2008 | $ | 14.44 | $ | 0.28 | $ | (2.42 | ) | $ | (2.14 | ) | $ | (0.50 | ) | $ | (1.96 | ) | $ | — | $ | (2.46 | ) | $ | — | ||||||||||||||
8/31/2007 | $ | 12.69 | $ | 0.20 | $ | 2.04 | $ | 2.24 | $ | (0.18 | ) | $ | (0.31 | ) | $ | — | $ | (0.49 | ) | $ | — | ||||||||||||||||
International Large Cap Fund | |||||||||||||||||||||||||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 8.31 | $ | 0.09 | $ | 1.00 | $ | 1.09 | $ | (0.05 | ) | $ | — | $ | — | $ | (0.05 | ) | $ | — | |||||||||||||||||
8/31/2010 | $ | 7.93 | $ | 0.09 | $ | 0.38 | $ | 0.47 | $ | (0.09 | ) | $ | — | $ | — | $ | (0.09 | ) | $ | — | |||||||||||||||||
8/31/2009 | $ | 10.12 | $ | 0.11 | $ | (2.08 | ) | $ | (1.97 | ) | $ | (0.22 | ) | $ | — | $ | — | $ | (0.22 | ) | $ | — | |||||||||||||||
8/31/2008 | $ | 12.09 | $ | 0.24 | $ | (1.63 | ) | $ | (1.39 | ) | $ | (0.18 | ) | $ | (0.40 | ) | $ | — | $ | (0.58 | ) | $ | — | ||||||||||||||
8/31/2007 | $ | 10.19 | $ | 0.17 | $ | 1.79 | $ | 1.96 | $ | (0.05 | ) | $ | (0.01 | ) | $ | — | $ | (0.06 | ) | $ | — | ||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 8.32 | $ | 0.16 | $ | 0.96 | $ | 1.12 | $ | (0.08 | ) | $ | — | $ | — | $ | (0.08 | ) | $ | — | |||||||||||||||||
8/31/2010 | $ | 7.93 | $ | 0.12 | $ | 0.38 | $ | 0.50 | $ | (0.11 | ) | $ | — | $ | — | $ | (0.11 | ) | $ | — | |||||||||||||||||
8/31/2009 | $ | 10.15 | $ | 0.14 | $ | (2.09 | ) | $ | (1.95 | ) | $ | (0.27 | ) | $ | — | $ | — | $ | (0.27 | ) | $ | — | |||||||||||||||
8/31/2008 | $ | 12.11 | $ | 0.29 | $ | (1.63 | ) | $ | (1.34 | ) | $ | (0.22 | ) | $ | (0.40 | ) | $ | — | $ | (0.62 | ) | $ | — | ||||||||||||||
Period from 10/6/2006^ to 8/31/2007 | $ | 10.19 | $ | 0.19 | $ | 1.80 | $ | 1.99 | $ | (0.06 | ) | $ | (0.01 | ) | $ | — | $ | (0.07 | ) | $ | — |
See Notes to Financial Highlights
217
Redemption Feesøø | 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 | ||||||||||||||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | 0.00 | $ | 18.47 | 15.91 | % | $ | 134.0 | 1.69 | % | 1.69 | % | .61 | % | 45 | % | |||||||||||||||||
8/31/2010 | $ | 0.00 | $ | 16.08 | 8.18 | % | $ | 162.8 | 1.52 | % | 1.52 | % | .81 | % | 61 | % | |||||||||||||||||
8/31/2009 | $ | 0.00 | $ | 15.03 | (20.48 | %) | $ | 201.5 | 1.49 | % | 1.49 | %‡ | 1.29 | % | 81 | % | |||||||||||||||||
8/31/2008 | $ | 0.00 | $ | 19.43 | (17.21 | %) | $ | 417.7 | 1.36 | % | 1.35 | %‡ | 1.64 | % | 53 | % | |||||||||||||||||
8/31/2007 | $ | 0.00 | $ | 28.18 | 17.34 | % | $ | 824.3 | 1.34 | % | 1.33 | %‡ | .96 | % | 42 | % | |||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
Period from 12/20/2010^ to 8/31/2011 | $ | 0.00 | $ | 18.51 | (.38 | %)** | $ | 0.7 | 1.69 | %a* | 1.69 | %‡a* | .57 | %a* | 45 | %Ø | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
Period from 12/20/2010^ to 8/31/2011 | $ | 0.00 | $ | 18.41 | (.91 | %)** | $ | 0.1 | 2.33 | %a* | 2.33 | %‡a* | .48 | %a* | 45 | %Ø | |||||||||||||||||
International Institutional Fund | |||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 9.20 | 15.62 | % | $ | 342.6 | .80 | % | .80 | %^^ | 1.67 | % | 46 | % | |||||||||||||||||
8/31/2010 | $ | 0.00 | $ | 8.10 | 9.05 | % | $ | 168.1 | .80 | % | .80 | %^^ | 1.53 | % | 50 | % | |||||||||||||||||
8/31/2009 | $ | 0.00 | $ | 7.53 | (19.92 | %) | $ | 223.8 | .81 | % | .81 | %^^ | 2.01 | % | 98 | % | |||||||||||||||||
8/31/2008 | $ | 0.00 | $ | 9.84 | (16.90 | %) | $ | 411.5 | .81 | % | .80 | %^^ | 2.32 | % | 58 | % | |||||||||||||||||
8/31/2007 | $ | 0.00 | $ | 14.44 | 17.97 | % | $ | 574.3 | .83 | % | .83 | %^^ | 1.44 | % | 59 | % | |||||||||||||||||
International Large Cap Fund | |||||||||||||||||||||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | 0.00 | $ | 9.35 | 13.09 | % | $ | 18.6 | 1.25 | % | 1.25 | %‡ | .97 | % | 54 | % | |||||||||||||||||
8/31/2010 | $ | 0.00 | $ | 8.31 | 5.87 | % | $ | 27.7 | 1.25 | % | 1.25 | %‡ | 1.10 | % | 45 | % | |||||||||||||||||
8/31/2009 | $ | 0.00 | $ | 7.93 | (18.84 | %) | $ | 28.9 | 1.27 | % | 1.27 | %‡ | 1.62 | % | 90 | % | |||||||||||||||||
8/31/2008 | $ | 0.00 | $ | 10.12 | (11.95 | %) | $ | 51.5 | 1.28 | % | 1.27 | %‡ | 2.07 | % | 97 | % | |||||||||||||||||
8/31/2007 | $ | 0.00 | $ | 12.09 | 19.24 | % | $ | 54.2 | 1.25 | % | 1.24 | %‡ | 1.42 | % | 23 | % | |||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | 0.00 | $ | 9.36 | 13.39 | % | $ | 161.5 | .90 | % | .90 | %‡ | 1.60 | % | 54 | % | |||||||||||||||||
8/31/2010 | $ | 0.00 | $ | 8.32 | 6.29 | % | $ | 129.5 | .90 | % | .90 | %‡ | 1.45 | % | 45 | % | |||||||||||||||||
8/31/2009 | $ | 0.00 | $ | 7.93 | (18.57 | %) | $ | 67.7 | .92 | % | .92 | %‡ | 2.00 | % | 90 | % | |||||||||||||||||
8/31/2008 | $ | 0.00 | $ | 10.15 | (11.60 | %) | $ | 114.4 | .93 | % | .92 | %‡ | 2.59 | % | 97 | % | |||||||||||||||||
Period from 10/6/2006^ to 8/31/2007 | $ | 0.00 | $ | 12.11 | 19.56 | %** | $ | 111.0 | .90 | %* | .89 | %‡* | 1.80 | %* | 23 | %Ø |
218
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 | Tax Return of Capital | Total Distributions | Voluntary Contribution from Management | ||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 8.27 | $ | 0.08 | $ | 1.00 | $ | 1.08 | $ | (0.05 | ) | $ | — | $ | — | $ | (0.05 | ) | $ | — | |||||||||||||||||
8/31/2010 | $ | 7.90 | $ | 0.10 | $ | 0.37 | $ | 0.47 | $ | (0.10 | ) | $ | — | $ | — | $ | (0.10 | ) | $ | — | |||||||||||||||||
8/31/2009 | $ | 10.12 | $ | 0.11 | $ | (2.08 | ) | $ | (1.97 | ) | $ | (0.25 | ) | $ | — | $ | — | $ | (0.25 | ) | $ | — | |||||||||||||||
Period from 12/20/2007^ to 8/31/2008 | $ | 11.30 | $ | 0.08 | $ | (1.26 | ) | $ | (1.18 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 8.20 | $ | 0.05 | $ | 0.95 | $ | 1.00 | $ | (0.03 | ) | $ | — | $ | — | $ | (0.03 | ) | $ | — | |||||||||||||||||
8/31/2010 | $ | 7.87 | $ | 0.04 | $ | 0.36 | $ | 0.40 | $ | (0.07 | ) | $ | — | $ | — | $ | (0.07 | ) | $ | — | |||||||||||||||||
8/31/2009 | $ | 10.06 | $ | 0.08 | $ | (2.08 | ) | $ | (2.00 | ) | $ | (0.19 | ) | $ | — | $ | — | $ | (0.19 | ) | $ | — | |||||||||||||||
Period from 12/20/2007^ to 8/31/2008 | $ | 11.30 | $ | 0.16 | $ | (1.40 | ) | $ | (1.24 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Class R3 | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 8.26 | $ | 0.11 | $ | 0.94 | $ | 1.05 | $ | (0.04 | ) | $ | — | $ | — | $ | (0.04 | ) | $ | — | |||||||||||||||||
8/31/2010 | $ | 7.90 | $ | 0.07 | $ | 0.37 | $ | 0.44 | $ | (0.08 | ) | $ | — | $ | — | $ | (0.08 | ) | $ | — | |||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | 7.10 | $ | 0.03 | $ | 0.77 | $ | 0.80 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Intrinsic Value Fund | |||||||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 9.41 | $ | (0.04 | ) | $ | 1.32 | $ | 1.28 | $ | (0.03 | ) | $ | (0.40 | ) | $ | — | $ | (0.43 | ) | $ | — | |||||||||||||||
Period from 5/10/2010^ to 8/31/2010 | $ | 10.00 | $ | 0.01 | $ | (0.60 | ) | $ | (0.59 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 9.40 | $ | (0.09 | ) | $ | 1.34 | $ | 1.25 | $ | (0.03 | ) | $ | (0.40 | ) | $ | — | $ | (0.43 | ) | $ | — | |||||||||||||||
Period from 5/10/2010^ to 8/31/2010 | $ | 10.00 | $ | (0.00 | ) | $ | (0.60 | ) | $ | (0.60 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 9.38 | $ | (0.17 | ) | $ | 1.34 | $ | 1.17 | $ | (0.01 | ) | $ | (0.40 | ) | $ | — | $ | (0.41 | ) | $ | — | |||||||||||||||
Period from 5/10/2010^ to 8/31/2010 | $ | 10.00 | $ | (0.02 | ) | $ | (0.60 | ) | $ | (0.62 | ) | $ | — | $ | — | $ | — | $ | — | $ | — |
See Notes to Financial Highlights
219
Redemption Feesøø | 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 | ||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | 0.00 | $ | 9.30 | 13.06 | % | $ | 5.2 | 1.24 | % | 1.24 | %‡ | .81 | % | 54 | % | |||||||||||||||||
8/31/2010 | $ | 0.00 | $ | 8.27 | 5.87 | % | $ | 9.3 | 1.24 | % | 1.24 | %‡ | 1.24 | % | 45 | % | |||||||||||||||||
8/31/2009 | $ | 0.00 | $ | 7.90 | (18.83 | %) | $ | 4.0 | 1.29 | % | 1.29 | %‡ | 1.63 | % | 90 | % | |||||||||||||||||
Period from 12/20/2007^ to 8/31/2008 | $ | 0.00 | $ | 10.12 | (10.44 | %)** | $ | 2.2 | 1.34 | %* | 1.34 | %‡* | 1.15 | %* | 97 | %Ø | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | 0.00 | $ | 9.17 | 12.19 | % | $ | 2.1 | 2.00 | % | 2.00 | %‡ | .57 | % | 54 | % | |||||||||||||||||
8/31/2010 | $ | 0.00 | $ | 8.20 | 5.02 | % | $ | 1.5 | 2.01 | % | 2.01 | %‡ | .45 | % | 45 | % | |||||||||||||||||
8/31/2009 | $ | 0.00 | $ | 7.87 | (19.34 | %) | $ | 0.4 | 2.01 | % | 2.01 | %‡ | 1.23 | % | 90 | % | |||||||||||||||||
Period from 12/20/2007^ to 8/31/2008 | $ | 0.00 | $ | 10.06 | (10.97 | %)** | $ | 0.1 | 2.04 | %* | 2.03 | %‡* | 2.05 | %* | 97 | %Ø | |||||||||||||||||
Class R3 | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | 0.00 | $ | 9.27 | 12.71 | % | $ | 0.1 | 1.51 | % | 1.51 | %‡ | 1.15 | % | 54 | % | |||||||||||||||||
8/31/2010 | $ | 0.00 | $ | 8.26 | 5.57 | % | $ | 0.1 | 1.51 | % | 1.51 | %‡ | .87 | % | 45 | % | |||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | 0.00 | $ | 7.90 | 11.27 | %** | $ | 0.1 | 1.52 | %* | 1.52 | %‡* | 1.31 | %* | 90 | %Ø | |||||||||||||||||
Intrinsic Value Fund | |||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 10.26 | 13.08 | % | $ | 114.7 | 1.00 | % | 1.00 | %‡ | (.35 | %) | 44 | % | |||||||||||||||||
Period from 5/10/2010^ to 8/31/2010 | $ | — | $ | 9.41 | (5.90 | %)** | $ | 80.9 | 1.00 | %* | 1.00 | %‡* | .33 | %* | 19 | %** | |||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 10.22 | 12.74 | % | $ | 8.6 | 1.36 | % | 1.36 | %‡ | (.73 | %) | 44 | % | |||||||||||||||||
Period from 5/10/2010^ to 8/31/2010 | $ | — | $ | 9.40 | (6.00 | %)** | $ | 0.6 | 1.36 | %* | 1.36 | %‡* | (.02 | %)* | 19 | %** | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 10.14 | 11.91 | % | $ | 5.5 | 2.11 | % | 2.11 | %‡ | (1.48 | %) | 44 | % | |||||||||||||||||
Period from 5/10/2010^ to 8/31/2010 | $ | — | $ | 9.38 | (6.20 | %)** | $ | 0.0 | 2.11 | %* | 2.11 | %‡* | (.79 | %)* | 19 | %** |
220
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 | Tax Return of Capital | Total Distributions | Voluntary Contribution from Management | |||||||||||||||||||||||||||||
Large Cap Disciplined Growth Fund | |||||||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 6.18 | $ | (0.01 | ) | $ | 1.21 | $ | 1.20 | $ | (0.00 | ) | $ | — | $ | — | $ | (0.00 | ) | $ | — | ||||||||||||||||
8/31/2010 | $ | 6.04 | $ | 0.02 | $ | 0.12 | $ | 0.14 | $ | (0.00 | ) | $ | — | $ | — | $ | (0.00 | ) | $ | — | |||||||||||||||||
8/31/2009 | $ | 7.39 | $ | 0.02 | $ | (1.37 | ) | $ | (1.35 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
8/31/2008 | $ | 7.45 | $ | (0.00 | ) | $ | (0.06 | ) | $ | (0.06 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
8/31/2007 | $ | 6.52 | $ | (0.00 | ) | $ | 0.93 | $ | 0.93 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 6.20 | $ | 0.02 | $ | 1.21 | $ | 1.23 | $ | (0.02 | ) | $ | — | $ | — | $ | (0.02 | ) | $ | — | |||||||||||||||||
8/31/2010 | $ | 6.05 | $ | 0.04 | $ | 0.13 | $ | 0.17 | $ | (0.02 | ) | $ | — | $ | — | $ | (0.02 | ) | $ | — | |||||||||||||||||
Period from 4/6/2009^ to 8/31/2009 | $ | 5.28 | $ | 0.02 | $ | 0.75 | $ | 0.77 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 6.18 | $ | (0.01 | ) | $ | 1.20 | $ | 1.19 | $ | (0.00 | ) | $ | — | $ | — | $ | (0.00 | ) | $ | — | ||||||||||||||||
8/31/2010 | $ | 6.04 | $ | 0.02 | $ | 0.12 | $ | 0.14 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Period from 4/6/2009^ to 8/31/2009 | $ | 5.28 | $ | 0.01 | $ | 0.75 | $ | 0.76 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 6.12 | $ | (0.06 | ) | $ | 1.20 | $ | 1.14 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
8/31/2010 | $ | 6.02 | $ | (0.03 | ) | $ | 0.13 | $ | 0.10 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Period from 4/6/2009^ to 8/31/2009 | $ | 5.28 | $ | (0.01 | ) | $ | 0.75 | $ | 0.74 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Class R3 | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 6.16 | $ | (0.02 | ) | $ | 1.20 | $ | 1.18 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
8/31/2010 | $ | 6.03 | $ | 0.00 | $ | 0.13 | $ | 0.13 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | 5.47 | $ | 0.00 | $ | 0.56 | $ | 0.56 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Large Cap Value Fund | |||||||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 8.30 | $ | 0.13 | $ | 1.60 | $ | 1.73 | $ | (0.08 | ) | $ | — | $ | — | $ | (0.08 | ) | $ | — | |||||||||||||||||
8/31/2010‡‡‡‡ | $ | 8.57 | $ | 0.08 | $ | (0.13 | ) | $ | (0.05 | ) | $ | (0.22 | ) | $ | — | $ | — | $ | (0.22 | ) | $ | — | |||||||||||||||
8/31/2009‡‡‡‡ | $ | 10.04 | $ | 0.19 | $ | (1.52 | ) | $ | (1.33 | ) | $ | (0.14 | ) | $ | — | $ | — | $ | (0.14 | ) | $ | — | |||||||||||||||
8/31/2008‡‡‡‡ | $ | 10.93 | $ | 0.24 | $ | (0.62 | ) | $ | (0.38 | ) | $ | (0.24 | ) | $ | (0.27 | ) | $ | — | $ | (0.51 | ) | $ | — | ||||||||||||||
Period from 11/2/2006^ to 8/31/2007‡‡‡‡ | $ | 10.00 | $ | 0.21 | $ | 0.88 | $ | 1.09 | $ | (0.16 | ) | $ | — | $ | — | $ | (0.16 | ) | $ | — |
See Notes to Financial Highlights
221
Redemption Feesøø | 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 | ||||||||||||||||||||||||||
Large Cap Disciplined Growth Fund | |||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 7.38 | 19.44 | % | $ | 15.5 | 1.11 | % | 1.11 | %§ | (.08 | %) | 101 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 6.18 | 2.37 | % | $ | 11.4 | 1.11 | % | 1.11 | %‡ | .29 | % | 104 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 6.04 | (18.27 | %) | $ | 11.7 | 1.34 | % | 1.34 | %‡ | .40 | % | 132 | %### | |||||||||||||||||
8/31/2008 | $ | — | $ | 7.39 | (.81 | %) | $ | 11.9 | 1.51 | % | 1.50 | %‡ | (.00 | %) | 167 | % | |||||||||||||||||
8/31/2007 | $ | — | $ | 7.45 | 14.26 | % | $ | 10.0 | 1.51 | % | 1.50 | %‡ | (.02 | %) | 46 | % | |||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 7.41 | 19.79 | % | $ | 565.4 | .75 | % | .75 | %‡ | .29 | % | 101 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 6.20 | 2.76 | % | $ | 346.6 | .75 | % | .75 | %‡ | .61 | % | 104 | % | |||||||||||||||||
Period from 4/6/2009^ to 8/31/2009 | $ | — | $ | 6.05 | 14.58 | %** | $ | 23.3 | .75 | %* | .75 | %‡* | .86 | %* | 132 | %Ø### | |||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 7.37 | 19.30 | % | $ | 40.2 | 1.11 | % | 1.11 | %‡ | (.09 | %) | 101 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 6.18 | 2.32 | % | $ | 33.0 | 1.11 | % | 1.11 | %‡ | .35 | % | 104 | % | |||||||||||||||||
Period from 4/6/2009^ to 8/31/2009 | $ | — | $ | 6.04 | 14.39 | %** | $ | 63.7 | 1.11 | %* | 1.11 | %‡* | .47 | %* | 132 | %Ø### | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 7.26 | 18.63 | % | $ | 37.0 | 1.86 | % | 1.86 | %‡ | (.83 | %) | 101 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 6.12 | 1.66 | % | $ | 31.0 | 1.86 | % | 1.86 | %‡ | (.46 | %) | 104 | % | |||||||||||||||||
Period from 4/6/2009^ to 8/31/2009 | $ | — | $ | 6.02 | 14.02 | %** | $ | 25.9 | 1.86 | %* | 1.86 | %‡* | (.28 | %)* | 132 | %Ø### | |||||||||||||||||
Class R3 | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 7.34 | 19.16 | % | $ | 0.3 | 1.36 | % | 1.36 | %‡ | (.29 | %) | 101 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 6.16 | 2.16 | % | $ | 0.1 | 1.36 | % | 1.36 | %‡ | .04 | % | 104 | % | |||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | — | $ | 6.03 | 10.24 | %** | $ | 0.1 | 1.36 | %* | 1.36 | %‡* | .20 | %* | 132 | %Ø### | |||||||||||||||||
Large Cap Value Fund | |||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 9.95 | 20.87 | % | $ | 2.6 | .75 | % | .75 | %‡ | 1.28 | % | 191 | % | |||||||||||||||||
8/31/2010‡‡‡‡ | $ | — | $ | 8.30 | (.71 | %)††††† | $ | 1.2 | .92 | % | .92 | %‡ | .93 | % | 52 | % | |||||||||||||||||
8/31/2009‡‡‡‡ | $ | — | $ | 8.57 | (13.01 | %)††††† | $ | 1.2 | 1.03 | % | 1.03 | %‡ | 2.39 | % | 94 | % | |||||||||||||||||
8/31/2008‡‡‡‡ | $ | — | $ | 10.04 | (3.68 | %)††††† | $ | 4.8 | 1.01 | % | 1.01 | %‡ | 2.24 | % | 53 | % | |||||||||||||||||
Period from 11/2/2006^ to 8/31/2007‡‡‡‡ | $ | — | $ | 10.93 | 10.87 | %†††††** | $ | 7.1 | 1.00 | %* | 1.00 | %‡* | 2.37 | %* | 42 | %** |
222
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 | Tax Return of Capital | Total Distributions | Voluntary Contribution from Management | |||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
Period from 3/2/2011^ to 8/31/2011 | $ | 10.28 | $ | 0.06 | $ | (0.41 | ) | $ | (0.35 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||
Period from 3/2/2011^ to 8/31/2011 | $ | 10.28 | $ | 0.01 | $ | (0.40 | ) | $ | (0.39 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Mid Cap Growth Fund | |||||||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 8.43 | $ | (0.05 | ) | $ | 2.46 | $ | 2.41 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
8/31/2010 | $ | 7.43 | $ | (0.05 | ) | $ | 1.05 | $ | 1.00 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
8/31/2009 | $ | 9.53 | $ | (0.02 | ) | $ | (2.08 | ) | $ | (2.10 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
8/31/2008 | $ | 10.54 | $ | (0.05 | ) | $ | (0.96 | ) | $ | (1.01 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
8/31/2007 | $ | 8.17 | $ | (0.03 | ) | $ | 2.40 | $ | 2.37 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 12.83 | $ | (0.08 | ) | $ | 3.73 | $ | 3.65 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
8/31/2010 | $ | 11.31 | $ | (0.08 | ) | $ | 1.60 | $ | 1.52 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
8/31/2009 | $ | 14.54 | $ | (0.04 | ) | $ | (3.19 | ) | $ | (3.23 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
8/31/2008 | $ | 16.11 | $ | (0.11 | ) | $ | (1.46 | ) | $ | (1.57 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
8/31/2007 | $ | 12.53 | $ | (0.09 | ) | $ | 3.67 | $ | 3.58 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Advisor Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 13.14 | $ | (0.16 | ) | $ | 3.84 | $ | 3.68 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
8/31/2010 | $ | 11.63 | $ | (0.13 | ) | $ | 1.64 | $ | 1.51 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
8/31/2009 | $ | 14.98 | $ | (0.06 | ) | $ | (3.29 | ) | $ | (3.35 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
8/31/2008 | $ | 16.64 | $ | (0.16 | ) | $ | (1.50 | ) | $ | (1.66 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
8/31/2007 | $ | 12.96 | $ | (0.12 | ) | $ | 3.80 | $ | 3.68 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 8.54 | $ | (0.02 | ) | $ | 2.49 | $ | 2.47 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
8/31/2010 | $ | 7.50 | $ | (0.02 | ) | $ | 1.06 | $ | 1.04 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
8/31/2009 | $ | 9.57 | $ | 0.01 | $ | (2.08 | ) | $ | (2.07 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
8/31/2008 | $ | 10.55 | $ | (0.02 | ) | $ | (0.96 | ) | $ | (0.98 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Period from 4/19/2007^ to 8/31/2007 | $ | 9.97 | $ | (0.01 | ) | $ | 0.59 | $ | 0.58 | $ | — | $ | — | $ | — | $ | — | $ | — |
See Notes to Financial Highlights
223
Redemption Feesøø | 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 | ||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
Period from 3/2/2011^ to 8/31/2011 | $ | — | $ | 9.93 | (3.40 | %)** | $ | 0.3 | 1.12 | %* | 1.12 | %‡* | 1.22 | %* | 191 | %Ø | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
Period from 3/2/2011^ to 8/31/2011 | $ | — | $ | 9.89 | (3.79 | %)** | $ | 0.0 | 1.86 | %* | 1.86 | %‡* | .26 | %* | 191 | %Ø | |||||||||||||||||
Mid Cap Growth Fund | |||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 10.84 | 28.59 | % | $ | 335.5 | 1.02 | % | 1.02 | % | (.45 | %) | 49 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 8.43 | 13.46 | % | $ | 288.0 | 1.07 | % | 1.07 | % | (.55 | %) | 70 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 7.43 | (22.04 | %) | $ | 280.9 | 1.11 | % | 1.11 | %‡ | (.28 | %) | 69 | % | |||||||||||||||||
8/31/2008 | $ | — | $ | 9.53 | (9.58 | %) | $ | 396.7 | 1.01 | % | 1.01 | %‡ | (.49 | %) | 70 | % | |||||||||||||||||
8/31/2007 | $ | — | $ | 10.54 | 29.01 | % | $ | 446.3 | 1.03 | % | 1.02 | %‡ | (.33 | %) | 49 | % | |||||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 16.48 | 28.45 | % | $ | 28.1 | 1.07 | % | 1.07 | % | (.52 | %) | 49 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 12.83 | 13.44 | % | $ | 21.8 | 1.14 | % | 1.14 | % | (.61 | %) | 70 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 11.31 | (22.21 | %) | $ | 16.4 | 1.26 | % | 1.26 | %‡ | (.37 | %) | 69 | % | |||||||||||||||||
8/31/2008 | $ | — | $ | 14.54 | (9.75 | %) | $ | 11.7 | 1.25 | % | 1.25 | %‡ | (.73 | %) | 70 | % | |||||||||||||||||
8/31/2007 | $ | — | $ | 16.11 | 28.57 | % | $ | 13.4 | 1.31 | % | 1.30 | %‡ | (.63 | %) | 49 | % | |||||||||||||||||
Advisor Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 16.82 | 28.01 | % | $ | 9.0 | 1.50 | % | 1.50 | %§ | (.95 | %) | 49 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 13.14 | 12.98 | % | $ | 5.4 | 1.50 | % | 1.50 | %§ | (.98 | %) | 70 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 11.63 | (22.36 | %) | $ | 6.9 | 1.50 | % | 1.50 | %‡ | (.57 | %) | 69 | % | |||||||||||||||||
8/31/2008 | $ | — | $ | 14.98 | (9.98 | %) | $ | 3.2 | 1.50 | % | 1.49 | %‡ | (.98 | %) | 70 | % | |||||||||||||||||
8/31/2007 | $ | — | $ | 16.64 | 28.40 | % | $ | 1.5 | 1.50 | % | 1.49 | %‡ | (.80 | %) | 49 | % | |||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 11.01 | 28.92 | % | $ | 113.8 | .75 | % | .75 | %‡ | (.21 | %) | 49 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 8.54 | 13.87 | % | $ | 121.1 | .75 | % | .75 | %‡ | (.22 | %) | 70 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 7.50 | (21.63 | %) | $ | 146.6 | .75 | % | .75 | %‡ | .12 | % | 69 | % | |||||||||||||||||
8/31/2008 | $ | — | $ | 9.57 | (9.29 | %) | $ | 51.1 | .75 | % | .75 | %‡ | (.22 | %) | 70 | % | |||||||||||||||||
Period from 4/19/2007^ to 8/31/2007 | $ | — | $ | 10.55 | 5.82 | %** | $ | 18.1 | .75 | %* | .74 | %‡* | (.25 | %)* | 49 | %Ø |
224
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 | Tax Return of Capital | Total Distributions | Voluntary Contribution from Management | |||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 12.84 | $ | (0.09 | ) | $ | 3.74 | $ | 3.65 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
8/31/2010 | $ | 11.31 | $ | (0.07 | ) | $ | 1.60 | $ | 1.53 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | 10.34 | $ | (0.00 | ) | $ | 0.97 | $ | 0.97 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 13.09 | $ | (0.23 | ) | $ | 3.82 | $ | 3.59 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
8/31/2010 | $ | 11.62 | $ | (0.18 | ) | $ | 1.65 | $ | 1.47 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | 10.64 | $ | (0.02 | ) | $ | 1.00 | $ | 0.98 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Class R3 | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 13.17 | $ | (0.16 | ) | $ | 3.86 | $ | 3.70 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
8/31/2010 | $ | 11.63 | $ | (0.11 | ) | $ | 1.65 | $ | 1.54 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | 10.64 | $ | (0.00 | ) | $ | 0.99 | $ | 0.99 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Multi-Cap Opportunities Fund | |||||||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 8.03 | $ | 0.06 | $ | 1.55 | $ | 1.61 | $ | (0.05 | ) | $ | — | $ | — | $ | (0.05 | ) | $ | — | |||||||||||||||||
8/31/2010‡‡‡ | $ | 7.93 | $ | 0.09 | $ | 0.16 | $ | 0.25 | $ | (0.15 | ) | $ | — | $ | — | $ | (0.15 | ) | $ | — | |||||||||||||||||
8/31/2009‡‡‡ | $ | 9.84 | $ | 0.07 | $ | (1.84 | ) | $ | (1.77 | ) | $ | (0.05 | ) | $ | (0.09 | ) | $ | — | $ | (0.14 | ) | $ | — | ||||||||||||||
8/31/2008‡‡‡ | $ | 11.14 | $ | 0.05 | $ | (0.86 | ) | $ | (0.81 | ) | $ | (0.07 | ) | $ | (0.42 | ) | $ | — | $ | (0.49 | ) | $ | — | ||||||||||||||
Period from 11/2/2006^ to 8/31/2007‡‡‡ | $ | 10.00 | $ | 0.04 | $ | 1.12 | $ | 1.16 | $ | (0.02 | ) | $ | — | $ | — | $ | (0.02 | ) | $ | — | |||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 8.02 | $ | 0.03 | $ | 1.53 | $ | 1.56 | $ | (0.02 | ) | $ | — | $ | — | $ | (0.02 | ) | $ | — | |||||||||||||||||
Period from 12/21/2009^ to 8/31/2010 | $ | 8.38 | $ | 0.03 | $ | (0.39 | ) | $ | (0.36 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 7.97 | $ | (0.05 | ) | $ | 1.55 | $ | 1.50 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Period from 12/21/2009^ to 8/31/2010 | $ | 8.38 | $ | (0.01 | ) | $ | (0.40 | ) | $ | (0.41 | ) | $ | — | $ | — | $ | — | $ | — | $ | — |
See Notes to Financial Highlights
225
Redemption Feesøø | 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 | ||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 16.49 | 28.43 | % | $ | 25.2 | 1.11 | % | 1.11 | %‡ | (.56 | %) | 49 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 12.84 | 13.53 | % | $ | 13.6 | 1.11 | % | 1.11 | %‡ | (.51 | %) | 70 | % | |||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | — | $ | 11.31 | 9.38 | %** | $ | 0.1 | 1.11 | %* | 1.11 | %‡* | (.01 | %)* | 69 | %Ø | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 16.68 | 27.43 | % | $ | 0.6 | 1.86 | % | 1.86 | %‡ | (1.36 | %) | 49 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 13.09 | 12.65 | % | $ | 0.2 | 1.86 | % | 1.86 | %‡ | (1.32 | %) | 70 | % | |||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | — | $ | 11.62 | 9.21 | %** | $ | 0.1 | 1.86 | %* | 1.86 | %‡* | (.64 | %)* | 69 | %Ø | |||||||||||||||||
Class R3 | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 16.87 | 28.09 | % | $ | 0.5 | 1.36 | % | 1.36 | %‡ | (.91 | %) | 49 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 13.17 | 13.24 | % | $ | 0.1 | 1.36 | % | 1.36 | %‡ | (.84 | %) | 70 | % | |||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | — | $ | 11.63 | 9.30 | %** | $ | 0.1 | 1.36 | %* | 1.36 | %‡* | (.14 | %)* | 69 | %Ø | |||||||||||||||||
Multi-Cap Opportunities Fund | |||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 9.59 | 20.09 | % | $ | 91.0 | 1.01 | % | 1.01 | %^^ | .64 | % | 105 | % | |||||||||||||||||
8/31/2010‡‡‡ | $ | — | $ | 8.03 | 3.02 | %†††† | $ | 47.2 | 1.00 | % | 1.00 | %^^ | 1.10 | % | 62 | % | |||||||||||||||||
8/31/2009‡‡‡ | $ | — | $ | 7.93 | (17.74 | %)†††† | $ | 3.1 | 1.02 | % | 1.02 | %^^ | 1.02 | % | 124 | % | |||||||||||||||||
8/31/2008‡‡‡ | $ | — | $ | 9.84 | (7.53 | %)†††† | $ | 5.0 | 1.01 | % | 1.01 | %^^ | .46 | % | 129 | % | |||||||||||||||||
Period from 11/2/2006^ to 8/31/2007‡‡‡ | $ | — | $ | 11.14 | 11.58 | %††††** | $ | 8.6 | 1.00 | %* | 1.00 | %^^* | .44 | %* | 88 | %** | |||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 9.56 | 19.48 | % | $ | 0.2 | 1.37 | % | 1.37 | %^^ | .28 | % | 105 | % | |||||||||||||||||
Period from 12/21/2009^ to 8/31/2010 | $ | — | $ | 8.02 | (4.30 | %)** | $ | 0.3 | 1.36 | %* | 1.36 | %^^* | .58 | %* | 62 | %Ø | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 9.47 | 18.82 | % | $ | 0.2 | 2.12 | % | 2.12 | %^^ | (.50 | %) | 105 | % | |||||||||||||||||
Period from 12/21/2009^ to 8/31/2010 | $ | — | $ | 7.97 | (4.89 | %)** | $ | 0.1 | 2.12 | %* | 2.12 | %^^* | (.18 | %)* | 62 | %Ø |
226
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 | Tax Return of Capital | Total Distributions | Voluntary Contribution from Management | |||||||||||||||||||||||||||||
Partners Fund | |||||||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 22.03 | $ | 0.11 | $ | 2.86 | $ | 2.97 | $ | (0.03 | ) | $ | — | $ | — | $ | (0.03 | ) | $ | — | |||||||||||||||||
8/31/2010 | $ | 21.67 | $ | 0.04 | $ | 0.45 | $ | 0.49 | $ | (0.13 | ) | $ | — | $ | — | $ | (0.13 | ) | $ | — | |||||||||||||||||
8/31/2009 | $ | 28.90 | $ | 0.15 | $ | (7.04 | ) | $ | (6.89 | ) | $ | (0.09 | ) | $ | (0.25 | ) | $ | — | $ | (0.34 | ) | $ | — | ||||||||||||||
8/31/2008 | $ | 32.10 | $ | 0.13 | $ | (2.01 | ) | $ | (1.88 | ) | $ | (0.12 | ) | $ | (1.20 | ) | $ | — | $ | (1.32 | ) | $ | — | ||||||||||||||
8/31/2007 | $ | 28.71 | $ | 0.14 | $ | 3.96 | $ | 4.10 | $ | (0.20 | ) | $ | (0.51 | ) | $ | — | $ | (0.71 | ) | $ | — | ||||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 16.90 | $ | 0.04 | $ | 2.21 | $ | 2.25 | $ | (0.00 | ) | $ | — | $ | — | $ | (0.00 | ) | $ | — | |||||||||||||||||
8/31/2010 | $ | 16.67 | $ | 0.00 | $ | 0.34 | $ | 0.34 | $ | (0.11 | ) | $ | — | $ | — | $ | (0.11 | ) | $ | — | |||||||||||||||||
8/31/2009 | $ | 22.25 | $ | 0.09 | $ | (5.42 | ) | $ | (5.33 | ) | $ | (0.06 | ) | $ | (0.19 | ) | $ | — | $ | (0.25 | ) | $ | — | ||||||||||||||
8/31/2008 | $ | 24.75 | $ | 0.06 | $ | (1.56 | ) | $ | (1.50 | ) | $ | (0.08 | ) | $ | (0.92 | ) | $ | — | $ | (1.00 | ) | $ | — | ||||||||||||||
8/31/2007 | $ | 22.14 | $ | 0.06 | $ | 3.05 | $ | 3.11 | $ | (0.11 | ) | $ | (0.39 | ) | $ | — | $ | (0.50 | ) | $ | — | ||||||||||||||||
Advisor Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 14.59 | $ | 0.01 | $ | 1.90 | $ | 1.91 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
8/31/2010 | $ | 14.42 | $ | (0.02 | ) | $ | 0.29 | $ | 0.27 | $ | (0.10 | ) | $ | — | $ | — | $ | (0.10 | ) | $ | — | ||||||||||||||||
8/31/2009 | $ | 19.27 | $ | 0.06 | $ | (4.69 | ) | $ | (4.63 | ) | $ | (0.05 | ) | $ | (0.17 | ) | $ | — | $ | (0.22 | ) | $ | — | ||||||||||||||
8/31/2008 | $ | 21.45 | $ | 0.02 | $ | (1.35 | ) | $ | (1.33 | ) | $ | (0.05 | ) | $ | (0.80 | ) | $ | — | $ | (0.85 | ) | $ | — | ||||||||||||||
8/31/2007 | $ | 19.18 | $ | 0.02 | $ | 2.65 | $ | 2.67 | $ | (0.06 | ) | $ | (0.34 | ) | $ | — | $ | (0.40 | ) | $ | — | ||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 22.15 | $ | 0.17 | $ | 2.87 | $ | 3.04 | $ | (0.08 | ) | $ | — | $ | — | $ | (0.08 | ) | $ | — | |||||||||||||||||
8/31/2010 | $ | 21.79 | $ | 0.08 | $ | 0.45 | $ | 0.53 | $ | (0.17 | ) | $ | — | $ | — | $ | (0.17 | ) | $ | — | |||||||||||||||||
8/31/2009 | $ | 29.06 | $ | 0.18 | $ | (7.08 | ) | $ | (6.90 | ) | $ | (0.12 | ) | $ | (0.25 | ) | $ | — | $ | (0.37 | ) | $ | — | ||||||||||||||
8/31/2008 | $ | 32.28 | $ | 0.19 | $ | (2.04 | ) | $ | (1.85 | ) | $ | (0.17 | ) | $ | (1.20 | ) | $ | — | $ | (1.37 | ) | $ | — | ||||||||||||||
8/31/2007 | $ | 28.72 | $ | 0.19 | $ | 3.96 | $ | 4.15 | $ | (0.08 | ) | $ | (0.51 | ) | $ | — | $ | (0.59 | ) | $ | — | ||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 16.90 | $ | 0.06 | $ | 2.18 | $ | 2.24 | $ | (0.08 | ) | $ | — | $ | — | $ | (0.08 | ) | $ | — | |||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | 18.36 | $ | 0.01 | $ | (1.47 | ) | $ | (1.46 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 14.57 | $ | (0.10 | ) | $ | 1.90 | $ | 1.80 | $ | (0.06 | ) | $ | — | $ | — | $ | (0.06 | ) | $ | — | ||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | 15.85 | $ | (0.02 | ) | $ | (1.26 | ) | $ | (1.28 | ) | $ | — | $ | — | $ | — | $ | — | $ | — |
See Notes to Financial Highlights
227
Redemption Feesøø | 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 | ||||||||||||||||||||||||||
Partners Fund | |||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 24.97 | 13.48 | % | $ | 1,171.4 | .85 | % | .85 | % | .42 | % | 41 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 22.03 | 2.21 | % | $ | 1,189.1 | .85 | % | .85 | % | .19 | % | 42 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 21.67 | (23.27 | %) | $ | 1,337.2 | .89 | % | .89 | %‡ | .85 | % | 35 | % | |||||||||||||||||
8/31/2008 | $ | — | $ | 28.90 | (6.22 | %) | $ | 2,193.1 | .81 | % | .80 | %‡ | .42 | % | 41 | % | |||||||||||||||||
8/31/2007 | $ | — | $ | 32.10 | 14.33 | % | $ | 2,267.6 | .81 | % | .80 | %‡ | .44 | % | 47 | % | |||||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 19.15 | 13.32 | % | $ | 424.9 | 1.04 | % | 1.04 | % | .22 | % | 41 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 16.90 | 2.01 | % | $ | 547.6 | 1.03 | % | 1.03 | % | .01 | % | 42 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 16.67 | (23.38 | %) | $ | 622.6 | 1.04 | % | 1.04 | %‡ | .70 | % | 35 | % | |||||||||||||||||
8/31/2008 | $ | — | $ | 22.25 | (6.40 | %) | $ | 1,004.0 | .99 | % | .99 | %‡ | .23 | % | 41 | % | |||||||||||||||||
8/31/2007 | $ | — | $ | 24.75 | 14.09 | % | $ | 1,171.5 | 1.00 | % | .99 | %‡ | .26 | % | 47 | % | |||||||||||||||||
Advisor Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 16.50 | 13.09 | % | $ | 308.9 | 1.19 | % | 1.19 | % | .07 | % | 41 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 14.59 | 1.83 | % | $ | 341.5 | 1.18 | % | 1.18 | % | (.14 | %) | 42 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 14.42 | (23.47 | %) | $ | 379.7 | 1.20 | % | 1.20 | %‡ | .54 | % | 35 | % | |||||||||||||||||
8/31/2008 | $ | — | $ | 19.27 | (6.56 | %) | $ | 559.0 | 1.15 | % | 1.14 | %‡ | .08 | % | 41 | % | |||||||||||||||||
8/31/2007 | $ | — | $ | 21.45 | 13.94 | % | $ | 599.0 | 1.15 | % | 1.14 | %‡ | .11 | % | 47 | % | |||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 25.11 | 13.69 | % | $ | 200.6 | .69 | % | .69 | % | .61 | % | 41 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 22.15 | 2.35 | % | $ | 148.7 | .69 | % | .69 | %§ | .35 | % | 42 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 21.79 | (23.10 | %) | $ | 161.3 | .70 | % | .70 | %‡ | 1.01 | % | 35 | % | |||||||||||||||||
8/31/2008 | $ | — | $ | 29.06 | (6.08 | %) | $ | 168.1 | .66 | % | .65 | %‡ | .59 | % | 41 | % | |||||||||||||||||
8/31/2007 | $ | — | $ | 32.28 | 14.49 | % | $ | 133.5 | .66 | % | .65 | %‡§ | .59 | % | 47 | % | |||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 19.06 | 13.20 | % | $ | 1.4 | 1.11 | % | 1.11 | %‡ | .30 | % | 41 | % | |||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | — | $ | 16.90 | (7.95 | %)** | $ | 0.0 | 1.11 | %* | 1.11 | %‡* | .16 | %* | 42 | %Ø | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 16.31 | 12.32 | % | $ | 0.1 | 1.86 | % | 1.86 | %‡ | (.56 | %) | 41 | % | |||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | — | $ | 14.57 | (8.08 | %)** | $ | 0.0 | 1.86 | %* | 1.86 | %‡* | (.60 | %)* | 42 | %Ø |
228
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 | Tax Return of Capital | Total Distributions | Voluntary Contribution from Management | |||||||||||||||||||||||||||||
Class R3 | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 14.58 | $ | (0.01 | ) | $ | 1.90 | $ | 1.89 | $ | (0.06 | ) | $ | — | $ | — | $ | (0.06 | ) | $ | — | ||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | 15.85 | $ | (0.00 | ) | $ | (1.27 | ) | $ | (1.27 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Real Estate Fund | |||||||||||||||||||||||||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 10.23 | $ | 0.09 | $ | 1.68 | $ | 1.77 | $ | (0.21 | ) | $ | — | $ | — | $ | (0.21 | ) | $ | — | |||||||||||||||||
8/31/2010 | $ | 7.74 | $ | 0.16 | $ | 2.53 | $ | 2.69 | $ | (0.16 | ) | $ | — | $ | (0.04 | ) | $ | (0.20 | ) | $ | — | ||||||||||||||||
8/31/2009 | $ | 10.65 | $ | 0.24 | $ | (2.84 | ) | $ | (2.60 | ) | $ | (0.24 | ) | $ | — | $ | (0.07 | ) | $ | (0.31 | ) | $ | — | ||||||||||||||
8/31/2008 | $ | 14.21 | $ | 0.22 | $ | (1.04 | ) | $ | (0.82 | ) | $ | (0.19 | ) | $ | (2.39 | ) | $ | (0.16 | ) | $ | (2.74 | ) | $ | — | |||||||||||||
8/31/2007 | $ | 15.69 | $ | 0.17 | $ | (0.09 | ) | $ | 0.08 | $ | (0.19 | ) | $ | (1.37 | ) | $ | — | $ | (1.56 | ) | $ | — | |||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 10.25 | $ | 0.10 | $ | 1.71 | $ | 1.81 | $ | (0.23 | ) | $ | — | $ | — | $ | (0.23 | ) | $ | — | |||||||||||||||||
8/31/2010 | $ | 7.76 | $ | 0.17 | $ | 2.53 | $ | 2.70 | $ | (0.16 | ) | $ | — | $ | (0.05 | ) | $ | (0.21 | ) | $ | — | ||||||||||||||||
8/31/2009 | $ | 10.66 | $ | 0.24 | $ | (2.82 | ) | $ | (2.58 | ) | $ | (0.23 | ) | $ | — | $ | (0.09 | ) | $ | (0.32 | ) | $ | — | ||||||||||||||
Period from 6/4/2008^ to 8/31/2008 | $ | 10.88 | $ | 0.07 | $ | (0.22 | ) | $ | (0.15 | ) | $ | (0.04 | ) | $ | — | $ | (0.03 | ) | $ | (0.07 | ) | $ | — | ||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 10.23 | $ | 0.04 | $ | 1.72 | $ | 1.76 | $ | (0.19 | ) | $ | — | $ | — | $ | (0.19 | ) | $ | — | |||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | 10.38 | $ | 0.01 | $ | (0.11 | ) | $ | (0.10 | ) | $ | (0.02 | ) | $ | — | $ | (0.03 | ) | $ | (0.05 | ) | $ | — | ||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 10.24 | $ | (0.05 | ) | $ | 1.73 | $ | 1.68 | $ | (0.12 | ) | $ | — | $ | — | $ | (0.12 | ) | $ | — | ||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | 10.38 | $ | 0.01 | $ | (0.12 | ) | $ | (0.11 | ) | $ | (0.01 | ) | $ | — | $ | (0.02 | ) | $ | (0.03 | ) | $ | — | ||||||||||||||
Class R3 | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 10.23 | $ | (0.01 | ) | $ | 1.74 | $ | 1.73 | $ | (0.16 | ) | $ | — | $ | — | $ | (0.16 | ) | $ | — | ||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | 10.38 | $ | 0.02 | $ | (0.13 | ) | $ | (0.11 | ) | $ | (0.03 | ) | $ | — | $ | (0.01 | ) | $ | (0.04 | ) | $ | — | ||||||||||||||
Regency Fund | |||||||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 12.26 | $ | 0.06 | $ | 1.88 | $ | 1.94 | $ | (0.02 | ) | $ | — | $ | — | $ | (0.02 | ) | $ | — | |||||||||||||||||
8/31/2010 | $ | 11.07 | $ | 0.01 | $ | 1.26 | $ | 1.27 | $ | (0.08 | ) | $ | — | $ | — | $ | (0.08 | ) | $ | — | |||||||||||||||||
8/31/2009 | $ | 15.02 | $ | 0.07 | $ | (3.47 | ) | $ | (3.40 | ) | $ | (0.00 | ) | $ | (0.55 | ) | $ | — | $ | (0.55 | ) | $ | — | ||||||||||||||
8/31/2008 | $ | 18.65 | $ | 0.07 | $ | (1.75 | ) | $ | (1.68 | ) | $ | (0.14 | ) | $ | (1.81 | ) | $ | — | $ | (1.95 | ) | $ | — | ||||||||||||||
8/31/2007 | $ | 16.52 | $ | 0.13 | $ | 2.19 | $ | 2.32 | $ | (0.10 | ) | $ | (0.09 | ) | $ | — | $ | (0.19 | ) | $ | — |
See Notes to Financial Highlights
229
Redemption Feesøø | 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 | ||||||||||||||||||||||||||
Class R3 | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 16.41 | 12.93 | % | $ | 0.0 | 1.36 | % | 1.36 | %‡ | (.08 | %) | 41 | % | |||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | — | $ | 14.58 | (8.01 | %)** | $ | 0.0 | 1.36 | %* | 1.36 | %‡* | (.09 | %)* | 42 | %Ø | |||||||||||||||||
Real Estate Fund | |||||||||||||||||||||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | 0.01 | $ | 11.80 | 17.53 | % | $ | 216.3 | .99 | % | .99 | %‡ | .75 | % | 28 | % | |||||||||||||||||
8/31/2010 | $ | 0.00 | $ | 10.23 | 35.09 | % | $ | 126.7 | .99 | % | .99 | %‡ | 1.73 | % | 70 | % | |||||||||||||||||
8/31/2009 | $ | 0.00 | $ | 7.74 | (23.69 | %) | $ | 63.0 | .99 | % | .99 | %‡ | 3.61 | % | 181 | % | |||||||||||||||||
8/31/2008 | $ | 0.00 | $ | 10.65 | (5.32 | %) | $ | 53.0 | 1.00 | % | .97 | %‡ | 1.93 | % | 187 | % | |||||||||||||||||
8/31/2007 | $ | 0.00 | $ | 14.21 | (.43 | %) | $ | 110.4 | .99 | % | .97 | %‡ | 1.06 | % | 99 | % | |||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | 0.00 | $ | 11.83 | 17.77 | % | $ | 117.1 | .85 | % | .85 | %‡ | .81 | % | 28 | % | |||||||||||||||||
8/31/2010 | $ | 0.00 | $ | 10.25 | 35.18 | % | $ | 22.6 | .85 | % | .85 | %‡ | 1.77 | % | 70 | % | |||||||||||||||||
8/31/2009 | $ | 0.00 | $ | 7.76 | (23.46 | %) | $ | 3.3 | .85 | % | .85 | %‡ | 3.47 | % | 181 | % | |||||||||||||||||
Period from 6/4/2008^ to 8/31/2008 | $ | 0.00 | $ | 10.66 | (1.31 | %)** | $ | 1.7 | .87 | %* | .86 | %‡* | 2.76 | %* | 187 | %Ø | |||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | 0.00 | $ | 11.80 | 17.33 | % | $ | 36.3 | 1.21 | % | 1.21 | %‡ | .33 | % | 28 | % | |||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | 0.00 | $ | 10.23 | (.98 | %)** | $ | 0.5 | 1.21 | %* | 1.21 | %‡* | .68 | %* | 70 | %Ø | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | 0.00 | $ | 11.80 | 16.44 | % | $ | 8.3 | 1.96 | % | 1.96 | %‡ | (.46 | %) | 28 | % | |||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | 0.00 | $ | 10.24 | (1.08 | %)** | $ | 0.1 | 1.96 | %* | 1.96 | %‡* | .66 | %* | 70 | %Ø | |||||||||||||||||
Class R3 | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | 0.00 | $ | 11.80 | 17.00 | % | $ | 0.3 | 1.46 | % | 1.46 | %‡ | (.06 | %) | 28 | % | |||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | 0.00 | $ | 10.23 | (1.04 | %)** | $ | 0.0 | 1.46 | %* | 1.46 | %‡* | .93 | %* | 70 | %Ø | |||||||||||||||||
Regency Fund | |||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 14.18 | 15.79 | % | $ | 46.5 | 1.22 | % | 1.22 | %‡ | .38 | % | 27 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 12.26 | 11.51 | % | $ | 55.9 | 1.22 | % | 1.22 | %‡ | .10 | % | 51 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 11.07 | (21.04 | %) | $ | 43.8 | 1.36 | % | 1.36 | %‡ | .78 | % | 51 | % | |||||||||||||||||
8/31/2008 | $ | — | $ | 15.02 | (9.93 | %) | $ | 79.1 | 1.13 | % | 1.11 | %‡ | .43 | % | 60 | % | |||||||||||||||||
8/31/2007 | $ | — | $ | 18.65 | 14.10 | % | $ | 99.9 | 1.09 | % | 1.08 | %‡ | .72 | % | 80 | % |
230
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 | Tax Return of Capital | Total Distributions | Voluntary Contribution from Management | |||||||||||||||||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 10.68 | $ | 0.04 | $ | 1.63 | $ | 1.67 | $ | (0.01 | ) | $ | — | $ | — | $ | (0.01 | ) | $ | — | |||||||||||||||||
8/31/2010 | $ | 9.66 | $ | 0.01 | $ | 1.11 | $ | 1.12 | $ | (0.10 | ) | $ | — | $ | — | $ | (0.10 | ) | $ | — | |||||||||||||||||
8/31/2009 | $ | 13.09 | $ | 0.07 | $ | (3.02 | ) | $ | (2.95 | ) | $ | (0.00 | ) | $ | (0.48 | ) | $ | — | $ | (0.48 | ) | $ | — | ||||||||||||||
8/31/2008 | $ | 16.26 | $ | 0.04 | $ | (1.52 | ) | $ | (1.48 | ) | $ | (0.11 | ) | $ | (1.58 | ) | $ | — | $ | (1.69 | ) | $ | — | ||||||||||||||
8/31/2007 | $ | 14.41 | $ | 0.08 | $ | 1.91 | $ | 1.99 | $ | (0.06 | ) | $ | (0.08 | ) | $ | — | $ | (0.14 | ) | $ | — | ||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 12.28 | $ | 0.11 | $ | 1.89 | $ | 2.00 | $ | (0.06 | ) | $ | — | $ | — | $ | (0.06 | ) | $ | — | |||||||||||||||||
Period from 3/8/2010^ to 8/31/2010 | $ | 13.12 | $ | 0.03 | $ | (0.87 | ) | $ | (0.84 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 10.68 | $ | 0.05 | $ | 1.63 | $ | 1.68 | $ | (0.02 | ) | $ | — | $ | — | $ | (0.02 | ) | $ | — | |||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | 11.41 | $ | 0.00 | $ | (0.73 | ) | $ | (0.73 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 10.66 | $ | (0.04 | ) | $ | 1.63 | $ | 1.59 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | 11.41 | $ | (0.01 | ) | $ | (0.74 | ) | $ | (0.75 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Class R3 | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 10.67 | $ | 0.04 | $ | 1.61 | $ | 1.65 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | 11.41 | $ | (0.00 | ) | $ | (0.74 | ) | $ | (0.74 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Select Equities Fund | |||||||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 7.91 | $ | 0.06 | $ | 1.41 | $ | 1.47 | $ | (0.07 | ) | $ | (0.26 | ) | $ | — | $ | (0.33 | ) | $ | — | ||||||||||||||||
8/31/2010 | $ | 8.06 | $ | 0.06 | $ | (0.01 | ) | $ | 0.05 | $ | (0.05 | ) | $ | (0.15 | ) | $ | — | $ | (0.20 | ) | $ | — | |||||||||||||||
8/31/2009 | $ | 9.20 | $ | 0.08 | $ | (1.19 | ) | $ | (1.11 | ) | $ | (0.03 | ) | $ | — | $ | — | $ | (0.03 | ) | $ | — | |||||||||||||||
Period from 12/20/2007^ to 8/31/2008 | $ | 10.00 | $ | 0.08 | $ | (0.88 | ) | $ | (0.80 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 7.88 | $ | 0.02 | $ | 1.41 | $ | 1.43 | $ | (0.02 | ) | $ | (0.26 | ) | $ | — | $ | (0.28 | ) | $ | — | ||||||||||||||||
8/31/2010 | $ | 8.05 | $ | 0.03 | $ | (0.03 | ) | $ | 0.00 | $ | (0.02 | ) | $ | (0.15 | ) | $ | — | $ | (0.17 | ) | $ | — | |||||||||||||||
8/31/2009 | $ | 9.18 | $ | 0.04 | $ | (1.14 | ) | $ | (1.10 | ) | $ | (0.03 | ) | $ | — | $ | — | $ | (0.03 | ) | $ | — | |||||||||||||||
Period from 12/20/2007^ to 8/31/2008 | $ | 10.00 | $ | 0.04 | $ | (0.86 | ) | $ | (0.82 | ) | $ | — | $ | — | $ | — | $ | — | $ | — |
See Notes to Financial Highlights
231
Redemption Feesøø | 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 | ||||||||||||||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 12.34 | 15.66 | % | $ | 24.1 | 1.26 | % | 1.26 | %‡ | .33 | % | 27 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 10.68 | 11.55 | % | $ | 80.5 | 1.25 | % | 1.25 | %‡ | .07 | % | 51 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 9.66 | (20.96 | %) | $ | 26.9 | 1.25 | % | 1.25 | %‡ | .89 | % | 51 | % | |||||||||||||||||
8/31/2008 | $ | — | $ | 13.09 | (10.03 | %) | $ | 52.8 | 1.26 | % | 1.24 | %‡ | .30 | % | 60 | % | |||||||||||||||||
8/31/2007 | $ | — | $ | 16.26 | 13.84 | % | $ | 55.6 | 1.25 | % | 1.24 | %‡ | .51 | % | 80 | % | |||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 14.22 | 16.26 | % | $ | 3.5 | .86 | % | .86 | %‡ | .67 | % | 27 | % | |||||||||||||||||
Period from 3/8/2010^ to 8/31/2010 | $ | — | $ | 12.28 | (6.40 | %)** | $ | 0.7 | .85 | %* | .85 | %‡* | .48 | %* | 51 | %Ø | |||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 12.34 | 15.70 | % | $ | 1.2 | 1.22 | % | 1.22 | %‡ | .37 | % | 27 | % | |||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | — | $ | 10.68 | (6.40 | %)** | $ | 0.0 | 1.21 | %* | 1.21 | %‡* | .04 | %* | 51 | %Ø | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 12.25 | 14.92 | % | $ | 0.1 | 1.97 | % | 1.97 | %‡ | (.31 | %) | 27 | % | |||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | — | $ | 10.66 | (6.57 | %)** | $ | 0.0 | 1.96 | %* | 1.96 | %‡* | (.64 | %)* | 51 | %Ø | |||||||||||||||||
Class R3 | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 12.32 | 15.46 | % | $ | 0.2 | 1.47 | % | 1.47 | %‡ | .32 | % | 27 | % | |||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | — | $ | 10.67 | (6.49 | %)** | $ | 0.0 | 1.46 | %* | 1.46 | %‡* | (.22 | %)* | 51 | %Ø | |||||||||||||||||
Select Equities Fund | |||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 9.05 | 18.62 | % | $ | 27.3 | .75 | % | .75 | %‡ | .67 | % | 150 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 7.91 | .44 | % | $ | 17.6 | .75 | % | .75 | %‡ | .78 | % | 129 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 8.06 | (12.03 | %) | $ | 6.5 | .75 | % | .75 | %‡ | 1.04 | % | 93 | % | |||||||||||||||||
Period from 12/20/2007^ to 8/31/2008 | $ | — | $ | 9.20 | (8.00 | %)** | $ | 2.3 | .76 | %* | .76 | %‡* | 1.17 | %* | 53 | %** | |||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 9.03 | 18.15 | % | $ | 30.9 | 1.20 | % | 1.20 | %‡ | .23 | % | 150 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 7.88 | (.11 | %) | $ | 38.0 | 1.20 | % | 1.20 | %‡ | .36 | % | 129 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 8.05 | (11.95 | %) | $ | 38.3 | 1.20 | % | 1.20 | %‡ | .52 | % | 93 | % | |||||||||||||||||
Period from 12/20/2007^ to 8/31/2008 | $ | — | $ | 9.18 | (8.20 | %)** | $ | 4.9 | 1.24 | %* | 1.24 | %‡* | .63 | %* | 53 | %** |
232
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 | Tax Return of Capital | Total Distributions | Voluntary Contribution from Management | |||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 7.74 | $ | (0.05 | ) | $ | 1.39 | $ | 1.34 | $ | — | $ | (0.26 | ) | $ | — | $ | (0.26 | ) | $ | — | ||||||||||||||||
8/31/2010 | $ | 7.94 | $ | (0.03 | ) | $ | (0.02 | ) | $ | (0.05 | ) | $ | — | $ | (0.15 | ) | $ | — | $ | (0.15 | ) | $ | — | ||||||||||||||
8/31/2009 | $ | 9.12 | $ | (0.02 | ) | $ | (1.13 | ) | $ | (1.15 | ) | $ | (0.03 | ) | $ | — | $ | — | $ | (0.03 | ) | $ | — | ||||||||||||||
Period from 12/20/2007^ to 8/31/2008 | $ | 10.00 | $ | (0.01 | ) | $ | (0.87 | ) | $ | (0.88 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Small Cap Growth Fund | |||||||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 13.68 | $ | (0.16 | ) | $ | 4.22 | $ | 4.06 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
8/31/2010 | $ | 13.15 | $ | (0.13 | ) | $ | 0.66 | $ | 0.53 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
8/31/2009 | $ | 17.92 | $ | (0.11 | ) | $ | (4.66 | ) | $ | (4.77 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
8/31/2008 | $ | 19.15 | $ | (0.18 | ) | $ | (1.05 | ) | $ | (1.23 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
8/31/2007 | $ | 15.01 | $ | (0.18 | ) | $ | 4.32 | $ | 4.14 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 14.93 | $ | (0.21 | ) | $ | 4.60 | $ | 4.39 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
8/31/2010 | $ | 14.43 | $ | (0.18 | ) | $ | 0.68 | $ | 0.50 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
8/31/2009 | $ | 19.67 | $ | (0.14 | ) | $ | (5.10 | ) | $ | (5.24 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
8/31/2008 | $ | 21.05 | $ | (0.21 | ) | $ | (1.17 | ) | $ | (1.38 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
8/31/2007 | $ | 16.52 | $ | (0.21 | ) | $ | 4.74 | $ | 4.53 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Advisor Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 9.92 | $ | (0.17 | ) | $ | 3.06 | $ | 2.89 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
8/31/2010 | $ | 9.61 | $ | (0.14 | ) | $ | 0.45 | $ | 0.31 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
8/31/2009 | $ | 13.13 | $ | (0.11 | ) | $ | (3.41 | ) | $ | (3.52 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
8/31/2008 | $ | 14.08 | $ | (0.17 | ) | $ | (0.78 | ) | $ | (0.95 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
8/31/2007 | $ | 11.07 | $ | (0.17 | ) | $ | 3.18 | $ | 3.01 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 13.75 | $ | (0.11 | ) | $ | 4.24 | $ | 4.13 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
8/31/2010 | $ | 13.23 | $ | (0.09 | ) | $ | 0.61 | $ | 0.52 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
8/31/2009 | $ | 17.95 | $ | (0.06 | ) | $ | (4.66 | ) | $ | (4.72 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Period from 4/1/2008^ to 8/31/2008 | $ | 17.64 | $ | (0.04 | ) | $ | 0.35 | $ | 0.31 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 14.95 | $ | (0.20 | ) | $ | 4.61 | $ | 4.41 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
8/31/2010 | $ | 14.43 | $ | (0.16 | ) | $ | 0.68 | $ | 0.52 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | 12.98 | $ | (0.03 | ) | $ | 1.48 | $ | 1.45 | $ | — | $ | — | $ | — | $ | — | $ | — |
See Notes to Financial Highlights
233
Redemption Feesøø | 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 | ||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 8.82 | 17.29 | % | $ | 13.2 | 1.95 | % | 1.95 | %‡ | (.53 | %) | 150 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 7.74 | (.75 | %) | $ | 11.6 | 1.95 | % | 1.95 | %‡ | (.41 | %) | 129 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 7.94 | (12.58 | %) | $ | 7.4 | 1.95 | % | 1.95 | %‡ | (.22 | %) | 93 | % | |||||||||||||||||
Period from 12/20/2007^ to 8/31/2008 | $ | — | $ | 9.12 | (8.80 | %)** | $ | 0.8 | 1.99 | %* | 1.98 | %‡* | (.08 | %)* | 53 | %** | |||||||||||||||||
Small Cap Growth Fund | |||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 17.74 | 29.68 | % | $ | 63.6 | 1.15 | % | 1.15 | %‡ | (.88 | %) | 185 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 13.68 | 4.03 | % | $ | 75.4 | 1.15 | % | 1.15 | %‡ | (.89 | %) | 235 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 13.15 | (26.62 | %) | $ | 144.1 | 1.30 | % | 1.30 | %‡ | (.89 | %) | 292 | % | |||||||||||||||||
8/31/2008 | $ | — | $ | 17.92 | (6.42 | %) | $ | 239.9 | 1.31 | % | 1.29 | %‡ | (.93 | %) | 185 | % | |||||||||||||||||
8/31/2007 | $ | — | $ | 19.15 | 27.58 | % | $ | 58.1 | 1.30 | % | 1.27 | %‡ | (1.01 | %) | 153 | % | |||||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 19.32 | 29.40 | % | $ | 19.3 | 1.37 | % | 1.37 | %‡ | (1.10 | %) | 185 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 14.93 | 3.47 | % | $ | 22.0 | 1.37 | % | 1.37 | %‡ | (1.11 | %) | 235 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 14.43 | (26.64 | %) | $ | 35.2 | 1.40 | % | 1.40 | %‡ | (1.00 | %) | 292 | % | |||||||||||||||||
8/31/2008 | $ | — | $ | 19.67 | (6.56 | %) | $ | 42.3 | 1.41 | % | 1.39 | %‡ | (1.04 | %) | 185 | % | |||||||||||||||||
8/31/2007 | $ | — | $ | 21.05 | 27.42 | % | $ | 8.5 | 1.40 | % | 1.38 | %‡ | (1.08 | %) | 153 | % | |||||||||||||||||
Advisor Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 12.81 | 29.13 | % | $ | 7.9 | 1.60 | % | 1.60 | %‡ | (1.33 | %) | 185 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 9.92 | 3.23 | % | $ | 9.7 | 1.60 | % | 1.60 | %‡ | (1.34 | %) | 235 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 9.61 | (26.81 | %) | $ | 11.7 | 1.60 | % | 1.60 | %‡ | (1.19 | %) | 292 | % | |||||||||||||||||
8/31/2008 | $ | — | $ | 13.13 | (6.75 | %) | $ | 13.6 | 1.61 | % | 1.59 | %‡ | (1.23 | %) | 185 | % | |||||||||||||||||
8/31/2007 | $ | — | $ | 14.08 | 27.19 | % | $ | 4.3 | 1.60 | % | 1.57 | %‡ | (1.30 | %) | 153 | % | |||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 17.88 | 30.04 | % | $ | 103.0 | .90 | % | .90 | %‡ | (.63 | %) | 185 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 13.75 | 3.93 | % | $ | 82.6 | .91 | % | .91 | %‡ | (.63 | %) | 235 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 13.23 | (26.30 | %) | $ | 7.5 | .90 | % | .90 | %‡ | (.48 | %) | 292 | % | |||||||||||||||||
Period from 4/1/2008^ to 8/31/2008 | $ | — | $ | 17.95 | 1.76 | %** | $ | 4.3 | .91 | %* | .90 | %‡* | (.55 | %)* | 185 | %Ø | |||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 19.36 | 29.50 | % | $ | 1.2 | 1.26 | % | 1.26 | %‡ | (1.01 | %) | 185 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 14.95 | 3.60 | % | $ | 0.5 | 1.26 | % | 1.26 | %‡ | (1.01 | %) | 235 | % | |||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | — | $ | 14.43 | 11.17 | %** | $ | 0.1 | 1.26 | %* | 1.26 | %‡* | (.76 | %)* | 292 | %Ø |
234
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 | Tax Return of Capital | Total Distributions | Voluntary Contribution from Management | |||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 9.87 | $ | (0.22 | ) | $ | 3.04 | $ | 2.82 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
8/31/2010 | $ | 9.60 | $ | (0.19 | ) | $ | 0.46 | $ | 0.27 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | 8.65 | $ | (0.04 | ) | $ | 0.99 | $ | 0.95 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Class R3 | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 9.93 | $ | (0.16 | ) | $ | 3.06 | $ | 2.90 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
8/31/2010 | $ | 9.61 | $ | (0.13 | ) | $ | 0.45 | $ | 0.32 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | 8.65 | $ | (0.02 | ) | $ | 0.98 | $ | 0.96 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Socially Responsive Fund | |||||||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 20.58 | $ | 0.18 | $ | 3.88 | $ | 4.06 | $ | (0.03 | ) | $ | — | $ | — | $ | (0.03 | ) | $ | — | |||||||||||||||||
8/31/2010 | $ | 18.74 | $ | 0.06 | $ | 1.84 | $ | 1.90 | $ | (0.06 | ) | $ | — | $ | — | $ | (0.06 | ) | $ | — | |||||||||||||||||
8/31/2009 | $ | 24.51 | $ | 0.09 | $ | (5.52 | ) | $ | (5.43 | ) | $ | (0.08 | ) | $ | (0.26 | ) | $ | — | $ | (0.34 | ) | $ | — | ||||||||||||||
8/31/2008 | $ | 27.20 | $ | 0.15 | $ | (1.85 | ) | $ | (1.70 | ) | $ | (0.13 | ) | $ | (0.86 | ) | $ | — | $ | (0.99 | ) | $ | — | ||||||||||||||
8/31/2007 | $ | 23.88 | $ | 0.18 | $ | 3.42 | $ | 3.60 | $ | (0.04 | ) | $ | (0.24 | ) | $ | — | $ | (0.28 | ) | $ | — | ||||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 14.11 | $ | 0.09 | $ | 2.68 | $ | 2.77 | $ | (0.03 | ) | $ | — | $ | — | $ | (0.03 | ) | $ | — | |||||||||||||||||
8/31/2010 | $ | 12.88 | $ | 0.01 | $ | 1.27 | $ | 1.28 | $ | (0.05 | ) | $ | — | $ | — | $ | (0.05 | ) | $ | — | |||||||||||||||||
8/31/2009 | $ | 16.91 | $ | 0.04 | $ | (3.82 | ) | $ | (3.78 | ) | $ | (0.07 | ) | $ | (0.18 | ) | $ | — | $ | (0.25 | ) | $ | — | ||||||||||||||
8/31/2008 | $ | 18.81 | $ | 0.07 | $ | (1.28 | ) | $ | (1.21 | ) | $ | (0.10 | ) | $ | (0.59 | ) | $ | — | $ | (0.69 | ) | $ | — | ||||||||||||||
8/31/2007 | $ | 16.53 | $ | 0.08 | $ | 2.38 | $ | 2.46 | $ | (0.01 | ) | $ | (0.17 | ) | $ | — | $ | (0.18 | ) | $ | — | ||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 20.60 | $ | 0.21 | $ | 3.91 | $ | 4.12 | $ | (0.08 | ) | $ | — | $ | — | $ | (0.08 | ) | $ | — | |||||||||||||||||
8/31/2010 | $ | 18.75 | $ | 0.10 | $ | 1.84 | $ | 1.94 | $ | (0.09 | ) | $ | — | $ | — | $ | (0.09 | ) | $ | — | |||||||||||||||||
8/31/2009 | $ | 24.53 | $ | 0.12 | $ | (5.53 | ) | $ | (5.41 | ) | $ | (0.11 | ) | $ | (0.26 | ) | $ | — | $ | (0.37 | ) | $ | — | ||||||||||||||
Period from 11/28/2007^ to 8/31/2008 | $ | 26.93 | $ | 0.16 | $ | (1.57 | ) | $ | (1.41 | ) | $ | (0.13 | ) | $ | (0.86 | ) | $ | — | $ | (0.99 | ) | $ | — | ||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 14.08 | $ | 0.07 | $ | 2.68 | $ | 2.75 | $ | (0.06 | ) | $ | — | $ | — | $ | (0.06 | ) | $ | — | |||||||||||||||||
8/31/2010 | $ | 12.88 | $ | 0.03 | $ | 1.26 | $ | 1.29 | $ | (0.09 | ) | $ | — | $ | — | $ | (0.09 | ) | $ | — | |||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | 12.00 | $ | 0.00 | $ | 0.88 | $ | 0.88 | $ | — | $ | — | $ | — | $ | — | $ | — |
See Notes to Financial Highlights
235
Redemption Feesøø | 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 | ||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 12.69 | 28.57 | % | $ | 0.3 | 2.01 | % | 2.01 | %‡ | (1.72 | %) | 185 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 9.87 | 2.81 | % | $ | 0.1 | 2.01 | % | 2.01 | %‡ | (1.76 | %) | 235 | % | |||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | — | $ | 9.60 | 10.98 | %** | $ | 0.1 | 2.01 | %* | 2.01 | %‡* | (1.47 | %)* | 292 | %Ø | |||||||||||||||||
Class R3 | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 12.83 | 29.20 | % | $ | 0.1 | 1.51 | % | 1.51 | %‡ | (1.24 | %) | 185 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 9.93 | 3.33 | % | $ | 0.1 | 1.51 | % | 1.51 | %‡ | (1.25 | %) | 235 | % | |||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | — | $ | 9.61 | 11.10 | %** | $ | 0.1 | 1.52 | %* | 1.52 | %‡* | (.97 | %)* | 292 | %Ø | |||||||||||||||||
Socially Responsive Fund | |||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 24.61 | 19.74 | % | $ | 648.1 | .90 | % | .90 | % | .69 | % | 20 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 20.58 | 10.14 | % | $ | 582.5 | .94 | % | .94 | % | .27 | % | 41 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 18.74 | (21.83 | %) | $ | 597.1 | .93 | % | .93 | % | .51 | % | 36 | % | |||||||||||||||||
8/31/2008 | $ | — | $ | 24.51 | (6.49 | %) | $ | 804.0 | .90 | % | .89 | % | .57 | % | 35 | % | |||||||||||||||||
8/31/2007 | $ | — | $ | 27.20 | 15.15 | % | $ | 786.2 | .91 | % | .90 | % | .66 | % | 16 | % | |||||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 16.85 | 19.60 | % | $ | 484.7 | 1.08 | % | 1.08 | % | .50 | % | 20 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 14.11 | 9.94 | % | $ | 356.1 | 1.12 | % | 1.12 | % | .10 | % | 41 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 12.88 | (22.01 | %) | $ | 308.2 | 1.13 | % | 1.13 | % | .32 | % | 36 | % | |||||||||||||||||
8/31/2008 | $ | — | $ | 16.91 | (6.67 | %) | $ | 361.5 | 1.09 | % | 1.08 | % | .38 | % | 35 | % | |||||||||||||||||
8/31/2007 | $ | — | $ | 18.81 | 14.93 | % | $ | 355.5 | 1.10 | % | 1.09 | % | .45 | % | 16 | % | |||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 24.64 | 19.98 | % | $ | 417.7 | .74 | % | .74 | %§ | .82 | % | 20 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 20.60 | 10.36 | % | $ | 166.9 | .75 | % | .75 | %‡ | .49 | % | 41 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 18.75 | (21.71 | %) | $ | 77.6 | .75 | % | .75 | %‡ | .70 | % | 36 | % | |||||||||||||||||
Period from 11/28/2007^ to 8/31/2008 | $ | — | $ | 24.53 | (5.47 | %)** | $ | 71.8 | .75 | %* | .74 | %‡* | .83 | %* | 35 | %Ø | |||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 16.77 | 19.54 | % | $ | 75.9 | 1.11 | % | 1.11 | %‡ | .42 | % | 20 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 14.08 | 10.03 | % | $ | 12.4 | 1.11 | % | 1.11 | %‡ | .18 | % | 41 | % | |||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | — | $ | 12.88 | 7.33 | %** | $ | 1.1 | 1.11 | %* | 1.11 | %‡* | .11 | %* | 36 | %Ø |
236
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 | Tax Return of Capital | Total Distributions | Voluntary Contribution from Management | |||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 13.94 | $ | (0.06 | ) | $ | 2.66 | $ | 2.60 | $ | (0.02 | ) | $ | — | $ | — | $ | (0.02 | ) | $ | — | ||||||||||||||||
8/31/2010 | $ | 12.86 | $ | (0.08 | ) | $ | 1.25 | $ | 1.17 | $ | (0.09 | ) | $ | — | $ | — | $ | (0.09 | ) | $ | — | ||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | 12.00 | $ | (0.01 | ) | $ | 0.87 | $ | 0.86 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Class R3 | |||||||||||||||||||||||||||||||||||||
8/31/2011 | $ | 14.05 | $ | 0.01 | $ | 2.69 | $ | 2.70 | $ | (0.07 | ) | $ | — | $ | — | $ | (0.07 | ) | $ | — | |||||||||||||||||
8/31/2010 | $ | 12.87 | $ | (0.02 | ) | $ | 1.27 | $ | 1.25 | $ | (0.07 | ) | $ | — | $ | — | $ | (0.07 | ) | $ | — | ||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | 12.00 | $ | 0.00 | $ | 0.87 | $ | 0.87 | $ | — | $ | — | $ | — | $ | — | $ | — |
See Notes to Financial Highlights
237
Redemption Feesøø | 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 | ||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 16.52 | 18.63 | % | $ | 12.9 | 1.86 | % | 1.86 | %‡ | (.35 | %) | 20 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 13.94 | 9.10 | % | $ | 3.3 | 1.86 | % | 1.86 | %‡ | (.57 | %) | 41 | % | |||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | — | $ | 12.86 | 7.17 | %** | $ | 0.1 | 1.86 | %* | 1.86 | %‡* | (.40 | %)* | 36 | %Ø | |||||||||||||||||
Class R3 | |||||||||||||||||||||||||||||||||
8/31/2011 | $ | — | $ | 16.68 | 19.20 | % | $ | 9.7 | 1.36 | % | 1.36 | %§ | .08 | % | 20 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 14.05 | 9.74 | % | $ | 0.2 | 1.36 | % | 1.36 | %‡ | (.11 | %) | 41 | % | |||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | — | $ | 12.87 | 7.25 | %** | $ | 0.1 | 1.36 | %* | 1.36 | %‡* | .12 | %* | 36 | %Ø |
238
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 and do not reflect the effect of sales charges. Results represent past performance and do not guarantee 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. For each Fund, 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 expenses. For the year ended August 31, 2009, Management reimbursed Emerging Markets Equity and Socially Responsive for losses incurred in connection with a trade error, which had no impact on total return. On August 30, 2011, Management made a voluntary contribution to International in the amount of $2,721,097. This payment was made by Management in connection with an administrative matter affecting the timing of a trade and had a 1.05%, 1.07%, 0.91% and 0.91% impact on total return for Investor Class, Trust Class, Class A and Class C, respectively. |
‡‡ | On June 9, 2008, Equity Income's Trust Class was converted into the Fund's Institutional Class. The financial information of the Fund's Institutional Class includes the financial information of Trust Class shares. Because the Trust Class had moderately higher expenses, its performance typically would have been slightly lower than the Institutional Class. |
‡‡‡ | On December 21, 2009, Multi-Cap Opportunities' Trust Class was converted into the Fund's Institutional Class. The financial information of the Fund's Institutional Class includes the financial information of Trust Class shares. The Trust Class had equivalent capped expenses and, therefore, typically similar returns to the Institutional Class. |
‡‡‡‡ | On April 19, 2010, Large Cap Value's Trust Class was converted into the Fund's Institutional Class. The financial information of the Fund's Institutional Class includes the financial information of Trust Class shares. Because the Trust Class had moderately higher expenses, its performance typically would have been slightly lower than the Institutional Class. |
††† | During the period from November 2, 2006 through June 9, 2008, Equity Income's Trust Class had only one investor, which could have impacted Fund performance. On June 9, 2008, the Fund's Trust Class was converted into the Fund's Institutional Class and the Institutional Class was opened to the public. The total return of the Fund's Institutional Class includes the performance of the former Trust Class. |
†††† | During the period from November 2, 2006 through December 21, 2009, Multi-Cap Opportunities' Trust Class had only one investor, which could have impacted Fund performance. On December 21, 2009, the Fund's Trust Class was converted into the Fund's Institutional Class and the Institutional Class was opened to the public. The total return of the Fund's Institutional Class includes the performance of the former Trust Class. |
††††† | During the period from November 2, 2006 through April 19, 2010, Large Cap Value's Trust Class had only one investor, which could have impacted Fund performance. On April 19, 2010, the Fund's Trust Class was converted into the Fund's Institutional Class and the Fund had only one Institutional Class investor, which could have impacted performance. The total return of the Fund's Institutional Class includes the performance of the former Trust Class. |
# | The Fund is required to calculate an expense ratio without taking into consideration any expense reductions related to expense offset arrangements. |
239
Notes to Financial Highlights (cont'd)
‡ | After reimbursement of expenses and/or waiver of a portion of the investment management fee by Management. Had Management not undertaken such actions, the annualized ratios of net expenses to average daily net assets would have been: |
Year Ended August 31, | |||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||||
Emerging Markets Equity Fund Institutional Class | 2.56 | % | 6.65 | % | 14.78 | %(13) | — | — | |||||||||||||
Emerging Markets Equity Fund Class A | 3.22 | % | 6.71 | % | 18.97 | %(13) | — | — | |||||||||||||
Emerging Markets Equity Fund Class C | 3.80 | % | 7.05 | % | 17.56 | %(13) | — | — | |||||||||||||
Emerging Markets Equity Fund Class R3 | 8.02 | % | 39.77 | %(3) | — | — | — | ||||||||||||||
Equity Income Fund Institutional Class | — | 1.01 | % | 1.32 | % | 3.63 | %(12) | 2.91 | %(6)(16) | ||||||||||||
Equity Income Fund Class A | — | 1.36 | % | 2.31 | % | 5.67 | %(17) | — | |||||||||||||
Equity Income Fund Class C | — | 2.12 | % | 2.80 | % | 6.94 | %(17) | — | |||||||||||||
Equity Income Fund Class R3 | 4.32 | % | 36.17 | %(3) | — | — | — | ||||||||||||||
Focus Fund Investor Class | — | — | .99 | % | .89 | % | .87 | % | |||||||||||||
Focus Fund Trust Class | — | — | 1.24 | % | 1.10 | % | 1.07 | % | |||||||||||||
Focus Fund Advisor Class | — | — | 1.53 | % | 1.33 | % | 1.28 | % | |||||||||||||
Focus Fund Institutional Class | .85 | % | 36.90 | %(3) | — | — | — | ||||||||||||||
Focus Fund Class A | 2.20 | % | 37.28 | %(3) | — | — | — | ||||||||||||||
Focus Fund Class C | 2.92 | % | 38.06 | %(3) | — | — | — | ||||||||||||||
Genesis Fund Investor Class | — | — | 1.08 | % | 1.03 | % | 1.03 | % | |||||||||||||
Genesis Fund Trust Class | — | — | 1.12 | % | 1.09 | % | 1.10 | % | |||||||||||||
Genesis Fund Advisor Class | — | — | 1.38 | % | 1.35 | % | 1.35 | % | |||||||||||||
Genesis Fund Institutional Class | .89 | % | .87 | % | .87 | % | .85 | % | .85 | % | |||||||||||
Global Equity Fund Institutional Class | 55.68 | %(21) | — | — | — | — | |||||||||||||||
Global Equity Fund Class A | 69.65 | %(21) | — | — | — | — | |||||||||||||||
Global Equity Fund Class C | 74.49 | %(21) | — | — | — | — | |||||||||||||||
Global Thematic Opportunities Fund Institutional Class | 4.83 | %(21) | — | — | — | — | |||||||||||||||
Global Thematic Opportunities Fund Class A | 13.72 | %(21) | — | — | — | — | |||||||||||||||
Global Thematic Opportunities Fund Class C | 21.31 | %(21) | — | — | — | — | |||||||||||||||
Guardian Fund Investor Class | — | — | .97 | % | .89 | % | .87 | % | |||||||||||||
Guardian Fund Trust Class | — | — | 1.14 | % | 1.06 | % | 1.05 | % | |||||||||||||
Guardian Fund Advisor Class | — | 2.59 | % | 5.33 | % | 3.44 | % | 2.85 | % | ||||||||||||
Guardian Fund Institutional Class | — | .81 | % | 5.16 | %(15) | — | — | ||||||||||||||
Guardian Fund Class A | 1.15 | % | 1.22 | % | 2.24 | %(15) | — | — | |||||||||||||
Guardian Fund Class C | 1.90 | % | 2.46 | % | 6.27 | %(15) | — | — | |||||||||||||
Guardian Fund Class R3 | 1.44 | % | 3.12 | % | 5.77 | %(15) | — | — | |||||||||||||
International Fund Investor Class | 1.60 | % | 1.41 | % | 1.40 | % | 1.26 | % | 1.24 | % | |||||||||||
International Fund Trust Class | — | — | 1.49 | % | 1.35 | % | 1.33 | % | |||||||||||||
International Fund Class A | 3.02 | %(10)(a) | — | — | — | — | |||||||||||||||
International Fund Class C | 8.24 | %(10)(a) | — | — | — | — | |||||||||||||||
International Large Cap Fund Trust Class | 1.39 | % | 1.53 | % | 1.73 | % | 1.37 | % | 1.48 | % | |||||||||||
International Large Cap Fund Institutional Class | 1.01 | % | 1.12 | % | 1.30 | % | .97 | % | .99 | %(4) | |||||||||||
International Large Cap Fund Class A | 1.39 | % | 1.52 | % | 2.17 | % | 1.70 | %(7) | — |
240
Notes to Financial Highlights (cont'd)
Year Ended August 31, | |||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||||
International Large Cap Fund Class C | 2.14 | % | 2.29 | % | 3.94 | % | 4.08 | %(7) | — | ||||||||||||
International Large Cap Fund Class R3 | 1.87 | % | 3.50 | % | 6.18 | %(15) | — | — | |||||||||||||
Intrinsic Value Fund Institutional Class | 1.26 | % | 1.70 | %(19) | — | — | — | ||||||||||||||
Intrinsic Value Fund Class A | 1.65 | % | 2.11 | %(19) | — | — | — | ||||||||||||||
Intrinsic Value Fund Class C | 2.34 | % | 3.09 | %(19) | — | — | — | ||||||||||||||
Large Cap Disciplined Growth Fund Investor Class | — | 1.23 | % | 2.50 | % | 2.53 | % | 2.44 | % | ||||||||||||
Large Cap Disciplined Growth Fund Institutional Class | .80 | % | .87 | % | 1.57 | %(14) | — | — | |||||||||||||
Large Cap Disciplined Growth Fund Class A | 1.19 | % | 1.30 | % | 1.79 | %(14) | — | — | |||||||||||||
Large Cap Disciplined Growth Fund Class C | 1.92 | % | 2.01 | % | 2.56 | %(14) | — | — | |||||||||||||
Large Cap Disciplined Growth Fund Class R3 | 1.48 | % | 3.23 | % | 6.21 | %(15) | — | — | |||||||||||||
Large Cap Value Fund Institutional Class | 18.35 | %(16) | 15.47 | %(2)(16) | 15.05 | %(16) | 2.58 | %(16) | 2.54 | %(1)(16) | |||||||||||
Large Cap Value Fund Class A | 17.08 | %(20) | — | — | — | — | |||||||||||||||
Large Cap Value Fund Class C | 26.31 | %(20) | — | — | — | — | |||||||||||||||
Mid Cap Growth Fund Investor Class | — | — | 1.11 | % | 1.01 | % | 1.02 | % | |||||||||||||
Mid Cap Growth Fund Trust Class | — | — | 1.26 | % | 1.25 | % | 1.30 | % | |||||||||||||
Mid Cap Growth Fund Advisor Class | — | — | 1.86 | % | 2.38 | % | 3.39 | % | |||||||||||||
Mid Cap Growth Fund Institutional Class | .81 | % | .83 | % | .87 | % | .78 | % | 1.03 | %(5) | |||||||||||
Mid Cap Growth Fund Class A | 1.19 | % | 1.28 | % | 4.05 | %(15) | — | — | |||||||||||||
Mid Cap Growth Fund Class C | 2.04 | % | 2.64 | % | 6.29 | %(15) | — | — | |||||||||||||
Mid Cap Growth Fund Class R3 | 1.50 | % | 3.15 | % | 5.78 | %(15) | — | — | |||||||||||||
Partners Fund Investor Class | — | — | .89 | % | .80 | % | .80 | % | |||||||||||||
Partners Fund Trust Class | — | — | 1.05 | % | .99 | % | .99 | % | |||||||||||||
Partners Fund Advisor Class | — | — | 1.20 | % | 1.14 | % | 1.14 | % | |||||||||||||
Partners Fund Institutional Class | — | — | .71 | % | .65 | % | .65 | % | |||||||||||||
Partners Fund Class A | 1.29 | % | 35.72 | %(3) | — | — | — | ||||||||||||||
Partners Fund Class C | 4.61 | % | 37.45 | %(3) | — | — | — | ||||||||||||||
Partners Fund Class R3 | 6.07 | % | 36.96 | %(3) | — | — | — | ||||||||||||||
Real Estate Fund Trust Class | 1.55 | % | 1.75 | % | 2.02 | % | 1.83 | % | 1.59 | % | |||||||||||
Real Estate Fund Institutional Class | 1.16 | % | 1.39 | % | 2.80 | % | 1.77 | %(11) | — | ||||||||||||
Real Estate Fund Class A | 1.60 | % | 12.56 | %(3) | — | — | — | ||||||||||||||
Real Estate Fund Class C | 2.37 | % | 20.75 | %(3) | — | — | — | ||||||||||||||
Real Estate Fund Class R3 | 2.81 | % | 37.36 | %(3) | — | — | — | ||||||||||||||
Regency Fund Investor Class | 1.33 | % | 1.24 | % | 1.37 | % | 1.12 | % | 1.08 | % | |||||||||||
Regency Fund Trust Class | 1.54 | % | 1.42 | % | 1.59 | % | 1.36 | % | 1.31 | % | |||||||||||
Regency Fund Institutional Class | 1.16 | % | 1.03 | %(18) | — | — | — | ||||||||||||||
Regency Fund Class A | 1.91 | % | 37.23 | %(3) | — | — | — | ||||||||||||||
Regency Fund Class C | 3.97 | % | 35.88 | %(3) | — | — | — | ||||||||||||||
Regency Fund Class R3 | 6.06 | % | 37.59 | %(3) | — | — | — | ||||||||||||||
Select Equities Fund Institutional Class | 1.17 | % | 1.22 | % | 2.57 | % | 13.92 | %(7) | — | ||||||||||||
Select Equities Fund Class A | 1.58 | % | 1.60 | % | 2.19 | % | 3.99 | %(7) | — | ||||||||||||
Select Equities Fund Class C | 2.30 | % | 2.35 | % | 2.91 | % | 7.21 | %(7) | — | ||||||||||||
Small Cap Growth Fund Investor Class | 1.49 | % | 1.50 | % | 1.48 | % | 1.42 | % | 1.76 | % |
241
Notes to Financial Highlights (cont'd)
Year Ended August 31, | |||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||||
Small Cap Growth Fund Trust Class | 1.67 | % | 1.70 | % | 1.73 | % | 1.64 | % | 2.22 | % | |||||||||||
Small Cap Growth Fund Advisor Class | 1.80 | % | 1.90 | % | 1.99 | % | 1.96 | % | 2.58 | % | |||||||||||
Small Cap Growth Fund Institutional Class | 1.26 | % | 1.28 | % | 1.69 | % | 1.10 | %(9) | — | ||||||||||||
Small Cap Growth Fund Class A | 1.78 | % | 2.05 | % | 5.34 | %(15) | — | — | |||||||||||||
Small Cap Growth Fund Class C | 2.52 | % | 3.43 | % | 6.65 | %(15) | — | — | |||||||||||||
Small Cap Growth Fund Class R3 | 2.05 | % | 4.16 | % | 6.29 | %(15) | — | — | |||||||||||||
Socially Responsive Fund Institutional Class | — | .77 | % | .78 | % | .76 | %(8) | — | |||||||||||||
Socially Responsive Fund Class A | 1.14 | % | 1.21 | % | 1.70 | %(15) | — | — | |||||||||||||
Socially Responsive Fund Class C | 1.89 | % | 1.99 | % | 6.17 | %(15) | — | — | |||||||||||||
Socially Responsive Fund Class R3 | — | 2.95 | % | 5.76 | %(15) | — | — |
(1) | Period from November 2, 2006 to August 31, 2007. | |
(2) | On April 19, 2010, Large Cap Value's Trust Class was converted into the Fund's Institutional Class. The financial information of the Fund's Institutional Class includes the financial information of Trust Class shares. | |
(3) | Period from June 21, 2010 to August 31, 2010. | |
(4) | Period from October 6, 2006 to August 31, 2007. | |
(5) | Period from April 19, 2007 to August 31, 2007. | |
(6) | Period from November 2, 2006 to August 31, 2007. | |
(7) | Period from December 20, 2007 to August 31, 2008. | |
(8) | Period from November 28, 2007 to August 31, 2008. | |
(9) | Period from April 1, 2008 to August 31, 2008. | |
(10) | Period from December 20, 2010 to August 31, 2011. | |
(11) | Period from June 4, 2008 to August 31, 2008. | |
(12) | On June 9, 2008, Equity Income's Trust Class was converted into the Fund's Institutional Class. The financial information of the Fund's Institutional Class includes the financial information of Trust Class shares. | |
(13) | Period from October 8, 2008 to August 31, 2009. Organization expense, which is a non-recurring expense, is included in ratios on a non-annualized basis. | |
(14) | Period from April 6, 2009 to August 31, 2009. | |
(15) | Period from May 27, 2009 to August 31, 2009. | |
(16) | These ratios reflect a reduced fee schedule for certain expenses. If these expenses had not been reduced, the ratios would have been higher. | |
(17) | Period from June 9, 2008 to August 31, 2008. | |
(18) | Period from March 8, 2010 to August 31, 2010. | |
(19) | Period from May 10, 2010 to August 31, 2010. Organization expense, which is a non-recurring expense, is included in ratios on a non-annualized basis. | |
(20) | Period from March 2, 2011 to August 31, 2011. | |
(21) | Period from June 30, 2011 to August 31, 2011. Organization expense, which is a non-recurring expense, is included in ratios on a non-annualized basis. |
242
Notes to Financial Highlights (cont'd)
a | For Class A and Class C, additional legal fees, which are a non-recurring expense, are included in ratios on a nonannualized basis (See Note I of Notes to Financial Statements). |
^^ | After utilization of the Line of Credit by International Institutional and Multi-Cap Opportunities and/or reimbursement of expenses and/or waiver of a portion of the investment management fee by Management. Had a Fund not utilized the Line of Credit or had Management not undertaken such actions, the annualized ratios of net expenses to average daily net assets would have been: |
Year Ended August 31, | |||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||||
International Institutional Fund Institutional Class | 1.23 | % | 1.24 | % | 1.26 | % | 1.11 | % | 1.12 | % | |||||||||||
Multi-Cap Opportunities Fund Institutional Class | 1.21 | % | 1.95 | %(1) | 5.67 | %(4) | 2.33 | %(4) | 2.31 | %(3)(4) | |||||||||||
Multi-Cap Opportunities Fund Class A | 1.69 | % | 3.18 | %(2) | — | — | — | ||||||||||||||
Multi-Cap Opportunities Fund Class C | 2.43 | % | 6.43 | %(2) | — | — | — |
(1) | On December 21, 2009, Multi-Cap Opportunities' Trust Class was converted into the Fund's Institutional Class. The financial information of the Fund's Institutional Class includes the financial information of Trust Class shares. | |
(2) | Period from December 21, 2009 to August 31, 2010. | |
(3) | Period from November 2, 2006 to August 31, 2007. | |
(4) | These ratios reflect a reduced fee schedule for certain expenses. If these expenses had not been reduced, the ratios would have been higher. | |
§ | After reimbursement of expenses previously paid by Management and/or waiver of a portion of the investment management fee by Management, as applicable. Had a Fund not made such reimbursements or had Management not undertaken such actions, the annualized ratios of net expenses to average daily net assets would have been: |
Year Ended August 31, | |||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||||
Equity Income Fund Institutional Class | .76 | % | — | — | — | — | |||||||||||||||
Equity Income Fund Class A | 1.16 | % | — | — | — | — | |||||||||||||||
Equity Income Fund Class C | 1.90 | % | — | — | — | — | |||||||||||||||
Focus Fund Advisor Class | — | 1.39 | % | — | — | — | |||||||||||||||
Guardian Fund Advisor Class | 1.35 | % | — | — | — | — | |||||||||||||||
Guardian Fund Institutional Class | .74 | % | — | — | — | — | |||||||||||||||
Large Cap Disciplined Growth Fund Investor Class | 1.08 | % | — | — | — | — | |||||||||||||||
Mid Cap Growth Fund Advisor Class | 1.34 | % | 1.48 | % | — | — | — | ||||||||||||||
Partners Fund Institutional Class | — | .68 | % | — | — | .64 | % | ||||||||||||||
Socially Responsive Fund Institutional Class | .72 | % | — | — | — | — | |||||||||||||||
Socially Responsive Fund Class R3 | 1.35 | % | — | — | — | — |
^ | The date investment operations commenced. |
@ | Calculated based on the average number of shares outstanding during each fiscal period. |
ØØ | Prior to June 1, 2011, redemption fees were charged on Emerging Markets Equity, International, International Institutional, International Large Cap, and Real Estate. Calculated based on the average number of shares outstanding during each fiscal period. |
* | Annualized. |
** | Not annualized. |
243
Notes to Financial Highlights (cont'd)
Ø | Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the year ended August 31, 2007 for International Large Cap and Mid Cap Growth, for the year ended August 31, 2008 for Equity Income, International Large Cap, Real Estate, Small Cap Growth, and Socially Responsive, for the year ended August 31, 2009 for Guardian, International Large Cap, Large Cap Disciplined Growth, Mid Cap Growth, Small Cap Growth, and Socially Responsive, for the year ended August 31, 2010 for Emerging Markets Equity, Equity Income, Focus, Multi-Cap Opportunities, Partners, Real Estate, and Regency, and for the year ended August 31, 2011 for International and Large Cap Value. |
## | On August 15, 2008, Genesis acquired all of the net assets of Neuberger Berman Fasciano Fund pursuant to a Plan of Reorganization and Dissolution. Portfolio turnover excludes purchases and sales of securities by Fasciano (acquired fund) prior to the merger date. |
### | On April 9, 2009, Large Cap Disciplined Growth (formerly, Neuberger Berman Century Fund) acquired all of the net assets of Neuberger Berman Large Cap Disciplined Growth Fund pursuant to a Plan of Reorganization and Dissolution. Portfolio turnover excludes purchases and sales of securities by Large Cap Disciplined Growth (acquired fund) prior to the merger date. |
@@ | Subsequent to August 31, 2007, Genesis received notification that a substantial portion of a special cash dividend received from one of its investments, which was recorded as dividend income in the 2007 financial statements, represented a non-taxable return of capital to Genesis. The reclassification had no impact on the total or per share net assets of Genesis, but resulted in a decrease of $62,516,000 in net investment income (loss), an increase of $2,354,000 in net realized gain (loss) on investments and an increase of $60,162,000 in change in unrealized appreciation (depreciation) of investments, for that year. The financial highlights for each class of shares for the year ended August 31, 2007, have been updated to reflect the revised recharacterization. The impact on the financial highlights for each class was a reclassification of $0.21, $0.32, $0.18 and $0.26 per share for the Investor Class, Trust Class, Advisor Class and Institutional Class, respectively, and a decrease in the Ratio of Net Investment Income (Loss) to Average Net Assets of 0.57%, 0.61%, 0.59% and 0.54% for the Investor Class, Trust Class, Advisor Class and Institutional Class, respectively. |
244
Report of Independent Registered Public Accounting Firm
To the Board of Trustees
Neuberger Berman Equity Funds and
Shareholders of:
Neuberger Berman Emerging Markets Equity Fund, Neuberger Berman Equity Income Fund, Neuberger Berman Focus Fund, Neuberger Berman Genesis Fund, Neuberger Berman Global Equity Fund, Neuberger Berman Global Thematic Opportunities Fund, Neuberger Berman Guardian Fund, Neuberger Berman International Fund, Neuberger Berman International Institutional Fund, Neuberger Berman International Large Cap Fund, Neuberger Berman Large Cap Value Fund, Neuberger Berman Partners Fund, Neuberger Berman Real Estate Fund, Neuberger Berman Select Equities Fund
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Neuberger Berman Emerging Markets Equity Fund, Neuberger Berman Equity Income Fund, Neuberger Berman Focus Fund, Neuberger Berman Genesis Fund, Neuberger Berman Global Equity Fund, Neuberger Berman Global Thematic Opportunities Fund, Neuberger Berman Guardian Fund, Neuberger Berman International Fund, Neuberger Berman International Institutional Fund, Neuberger Berman International Large Cap Fund, Neuberger Berman Large Cap Value Fund, Neuberger Berman Partners Fund, Neuberger Berman Real Estate Fund, and Neuberger Berman Select Equities Fund, fourteen of the series constituting Neuberger Berman Equity Funds (the "Trust"), as of August 31, 2011, 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 Trust's management. Our responsibility is to express an opinion on these financial statements 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 audits 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 Trust'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 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 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 August 31, 2011, 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 each of the above-mentioned series of the Trust as of August 31, 2011, 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
October 14, 2011
245
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders
Neuberger Berman Equity Funds
We have audited the accompanying statements of assets and liabilities of the Neuberger Berman Intrinsic Value Fund, Neuberger Berman Large Cap Disciplined Growth Fund, Neuberger Berman Mid Cap Growth Fund, Neuberger Berman Regency Fund, Neuberger Berman Small Cap Growth Fund, Neuberger Berman Socially Responsive Fund, and Neuberger Berman Multi-Cap Opportunities Fund (formerly Research Opportunities Fund), each a series of the Neuberger Berman Equity Funds (the "Trust"), including the schedules of investments, as of August 31, 2011, and the related statements of operations for the year then ended, the statements of changes in net assets and the financial highlights for the periods indicated therein. 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 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 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 and financial highlights, 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 August 31, 2011, 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 above mentioned series of the Trust, as of August 31, 2011, and the results of their operations, the changes in their net assets, and the financial highlights for the periods indicated therein, in conformity with accounting principles generally accepted in the United States of America.
Philadelphia, Pennsylvania
October 14, 2011
246
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 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 Investor Class Shareholders
Address correspondence to:
Neuberger Berman Funds
Boston Service Center
P.O. Box 8403
Boston, MA 02266-8403
800.877.9700 or 212.476.8800
For Class A, Class C and Class R3 Shareholders:
Please contact your investment provider
For Trust Class, Advisor Class and Institutional
Class Shareholders
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
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
247
Trustee and Officer Information
The following tables set forth information concerning the trustees ("Trustees") and officers ("Officers") of the Trust. All persons named as Trustees and Officers also serve in similar capacities for other funds administered or managed by Management and Neuberger. The Statement of Additional Information includes additional information about Trustees 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 and Length of Time Served(2) | Principal Occupation(s)(3) | Number of Funds in Fund Complex Overseen by Fund Trustee | Other Directorships Held Outside Fund Complex by Fund Trustee(3) | |||||||
Independent Fund Trustees | |||||||||||
John Cannon (1930) | Trustee since 2000 | Consultant; formerly, Chairman, CDC Investment Advisers (registered investment adviser), 1993 to January 1999; formerly, President and Chief Executive Officer, AMA Investment Advisors, an affiliate of the American Medical Association. | 45 | Formerly, Independent Trustee or Director of three series of Oppenheimer Funds: Oppenheimer Limited Term New York Municipal Fund, Rochester Fund Municipals, and Oppenheimer Convertible Securities Fund, 1992 to 2009. | |||||||
Faith Colish (1935) | Trustee since 1982 | Counsel, Carter Ledyard & Milburn LLP (law firm) since October 2002; formerly, Attorney-at-Law and President, Faith Colish, A Professional Corporation, 1980 to 2002. | 45 | Formerly, Director, 1997 to 2003, and Advisory Director, 2003 to 2006; ABA Retirement Funds (formerly, American Bar Retirement Association) (not-for-profit membership corporation). | |||||||
248
Name, (Year of Birth), and Address(1) | Position and Length of Time Served(2) | Principal Occupation(s)(3) | Number of Funds in Fund Complex Overseen by Fund Trustee | Other Directorships Held Outside Fund Complex by Fund Trustee(3) | |||||||
Martha C. Goss (1949) | Trustee since 2007 | President, Woodhill Enterprises Inc./Chase Hollow Associates LLC (personal investment vehicle), since 2006; Chief Operating and Financial Officer, Hopewell Holdings LLC/Amwell Holdings, LLC (a holding company for a healthcare reinsurance company start-up), since 2003; formerly, Consultant, Resources Connection (temporary staffing), 2002 to 2006. | 45 | Director, American Water (water utility), since 2003; Director, Channel Reinsurance (financial guaranty reinsurance), since 2006; Director, Allianz Life of New York (insurance), since 2005; Director, Financial Women's Association of New York (not-for-profit association), since 2003; Trustee Emerita, Brown University, since 1998; formerly, Director, Ocwen Financial Corporation (mortgage servicing), 2005 to 2010; formerly, Advisory Board Member, Attensity (software developer), 2005 to 2007; formerly, Director, Bank Leumi (commercial bank), 2005 to 2007; formerly, Director, Claire's Stores, Inc. (retailer), 2005 to 2007. | |||||||
C. Anne Harvey (1937) | Trustee since 2000 | President, C.A. Harvey Associates, since October 2001; formerly, Director, AARP, 1978 to December 2001. | 45 | Formerly, President, Board of Associates to The National Rehabilitation Hospital's Board of Directors, 2001 to 2002; formerly, Member, Individual Investors Advisory Committee to the New York Stock Exchange Board of Directors, 1998 to 2002. | |||||||
249
Name, (Year of Birth), and Address(1) | Position and Length of Time Served(2) | Principal Occupation(s)(3) | Number of Funds in Fund Complex Overseen by Fund Trustee | Other Directorships Held Outside Fund Complex by Fund Trustee(3) | |||||||
Robert A. Kavesh (1927) | Trustee since 1986 | Retired, since 2002; Marcus Nadler Professor Emeritus of Finance and Economics, New York University Stern School of Business; formerly, Executive Secretary-Treasurer, American Finance Association, 1961 to 1979. | 45 | Formerly, Director, The Caring Community (not-for-profit), 1997 to 2006; formerly, Director, DEL Laboratories, Inc. (cosmetics and pharmaceuticals), 1978 to 2004; formerly, Director, Apple Bank for Savings, 1979 to 1990; formerly, Director, Western Pacific Industries, Inc., (public company), 1972 to 1986. | |||||||
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. | 45 | 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. | |||||||
Howard A. Mileaf (1937) | Trustee since 1984 | Retired; formerly, Vice President and General Counsel, WHX Corporation (holding company), 1993 to 2001. | 45 | 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 | Retired; formerly, Executive Vice President and Chief Financial Officer, People's Bank, Connecticut (a financial services company), 1991 to 2001. | 45 | Manager, Larch Lane Multi-Strategy Fund complex (which currently consists of three funds), since 2006; formerly, Member, NASDAQ Issuers' Affairs Committee, 1995 to 2003. | |||||||
250
Name, (Year of Birth), and Address(1) | Position and Length of Time Served(2) | Principal Occupation(s)(3) | Number of Funds in Fund Complex Overseen by Fund Trustee | Other Directorships Held Outside Fund Complex by Fund Trustee(3) | |||||||
Edward I. O'Brien (1928) | Trustee since 1993 | Private Investor; formerly, Member, Investment Policy Committee, Edward Jones, 1993 to 2001; President, Securities Industry Association ("SIA") (securities industry's representative in government relations and regulatory matters at the federal and state levels), 1974 to 1992; Adviser to SIA, November 1992 to November 1993. | 45 | Formerly, Director, Legg Mason, Inc. (financial services holding company), 1993 to July 2008; formerly, Director, Boston Financial Group (real estate and tax shelters), 1993 to 1999. | |||||||
Cornelius T. Ryan (1931) | Trustee since 1982 | General Partner and Adviser, TD2, TD3, and TOF1 Healthcare Venture Capital Partnerships; formerly, Founding General Partner, Oxford Partners and Oxford Bioscience Partners (venture capital investing) and President, Oxford Venture Corporation, 1981 to 2010. | 45 | Trustee, Norwalk Hospital Foundation, since 2000; Director, Supply Pro (privately held company), since 2008; formerly, Trustee, Norwalk Hospital, 1995 to 2004; formerly, President and Director, Randolph Computer Corp., 1966 to 1984; formerly, Director of numerous privately held portfolio companies of Oxford Partners and Oxford Bioscience Partners, 1981 to 2005. | |||||||
Tom D. Seip (1950) | Trustee since 2000; 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. | 45 | Director, H&R Block, Inc. (financial services company), since May 2001; formerly, Chairman, Compensation Committee, H&R Block, Inc., 2006 to 2010; formerly, Director, Forward Management, Inc. (asset management company), 1999 to 2006. | |||||||
251
Name, (Year of Birth), and Address(1) | Position and Length of Time Served(2) | Principal Occupation(s)(3) | Number of Funds in Fund Complex Overseen by Fund Trustee | Other Directorships Held Outside Fund Complex by Fund Trustee(3) | |||||||
Candace L. Straight (1947) | Trustee since 2000 | 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. | 45 | 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 2000 | 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. | 45 | None. | |||||||
252
Name, (Year of Birth), and Address(1) | Position and Length of Time Served(2) | Principal Occupation(s)(3) | Number of Funds in Fund Complex Overseen by Fund Trustee | Other Directorships Held Outside Fund Complex by Fund Trustee(3) | |||||||
Fund 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, Neuberger, since 2009; Chief Investment Officer (Equities) and Managing Director, Management, since 2009; Managing Director, Neuberger Berman Fixed Income LLC ("NBFI") since 2007; Board member of NBFI since 2006; formerly, Global Head of Asset Management of 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. | 45 | 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. | |||||||
Robert Conti* (1956) | Chief Executive Officer, President and Trustee since 2008; prior thereto, Executive Vice President in 2008 and Vice President 2000 to 2008 | Managing Director, Neuberger, since 2007; 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. | 45 | Chairman of the Board, Staten Island Mental Health Society since 2008. | |||||||
253
Name, (Year of Birth), and Address(1) | Position and Length of Time Served(2) | Principal Occupation(s)(3) | Number of Funds in Fund Complex Overseen by Fund Trustee | Other Directorships Held Outside Fund Complex by Fund Trustee(3) | |||||||
Jack L. Rivkin* (1940) | Trustee since 2002; President, 2002 to 2008 | Formerly, Executive Vice President and Chief Investment Officer, Neuberger Berman Holdings LLC (holding company), 2002 to August 2008 and 2003 to August 2008, respectively; formerly, Managing Director and Chief Investment Officer, Neuberger, December 2005 to August 2008 and 2003 to August 2008, respectively; formerly, Executive Vice President, Neuberger, December 2002 to 2005; formerly, Director and Chairman, Management, December 2002 to August 2008; formerly, Executive Vice President, Citigroup Investments, Inc., September 1995 to February 2002; formerly, Executive Vice President, Citigroup Inc., September 1995 to February 2002. | 45 | Director, Idealab (private company), since 2009; Director, Distributed World Power (private company), since 2009; Director, Dale Carnegie and Associates, Inc. (private company), since 1999; Director, Solbright, Inc. (private company), since 1998; Director, SA Agricultural Fund, since 2009; Chairman and Director, Essential Brands (consumer products) since 2008; formerly, Director, New York Society of Security Analysts, 2006 to 2008. | |||||||
(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 by virtue of the fact that each is an officer of Management, Neuberger and/or their affiliates. Mr. Rivkin may be deemed an interested person of the Trust by virtue of the fact that, until August 2008, he was a director of Management and an officer of Neuberger. |
254
Information about the Officers of the Trust
Name, (Year of Birth), and Address(1) | Position and Length of Time Served(2) | Principal Occupation(s)(3) | |||
Andrew B. Allard (1961) | Anti-Money Laundering Compliance Officer since 2002 | 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; Anti-Money Laundering Compliance Officer, nine registered investment companies for which Management acts as investment manager and administrator (six since 2002, one since 2003, one since 2005 and one since 2006). | |||
Claudia A. Brandon (1956) | Executive Vice President since 2008 and Secretary since 1985 | 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, nine registered investment companies for which Management acts as investment manager and administrator (nine since 2008); Secretary, nine registered investment companies for which Management acts as investment manager and administrator (three since 1985, three since 2002, one since 2003, one since 2005 and one since 2006). | |||
Anthony DiBernardo (1979) | Assistant Treasurer since 2011 | Vice President, Neuberger, since 2009; Employee, Management, since 2003; Assistant Treasurer, nine registered investment companies for which Management acts as investment manager and administrator. | |||
Maxine L. Gerson (1950) | Executive Vice President since 2008 and Chief Legal Officer since 2005 (only for purposes of sections 307 and 406 of the Sarbanes-Oxley Act of 2002) | Managing Director, Neuberger, since 2009, and Deputy General Counsel and Assistant Secretary, Neuberger, since 2001; Managing Director, Management, since 2009, and Secretary and General Counsel, Management, since 2004; formerly, Senior Vice President, Neuberger, 2002 to 2009; formerly, Senior Vice President, Management, 2006 to 2009; Executive Vice President, nine registered investment companies for which Management acts as investment manager and administrator (nine since 2008); Chief Legal Officer (only for purposes of sections 307 and 406 of the Sarbanes-Oxley Act of 2002), nine registered investment companies for which Management acts as investment manager and administrator (eight since 2005 and one since 2006). | |||
Sheila R. James (1965) | Assistant Secretary since 2002 | Vice President, Neuberger, since 2008 and Employee since 1999; formerly, Assistant Vice President, Neuberger, 2007; formerly, Employee, Management, 1991 to 1999; Assistant Secretary, nine registered investment companies for which Management acts as investment manager and administrator (six since 2002, one since 2003, one since 2005 and one since 2006). | |||
Brian Kerrane (1969) | Vice President since 2008 | Senior Vice President, Neuberger, since 2006; formerly, Vice President, Neuberger, 2002 to 2006; Vice President, Management, since 2008 and Employee since 1991; Vice President, nine registered investment companies for which Management acts as investment manager and administrator (nine since 2008). | |||
255
Name, (Year of Birth), and Address(1) | Position and Length of Time Served(2) | Principal Occupation(s)(3) | |||
Kevin Lyons (1955) | Assistant Secretary since 2003 | Assistant Vice President, Neuberger, since 2008 and Employee since 1999; formerly, Employee, Management, 1993 to 1999; Assistant Secretary, nine registered investment companies for which Management acts as investment manager and administrator (seven since 2003, one since 2005 and one since 2006). | |||
Owen F. McEntee, Jr. (1961) | Vice President since 2008 | Vice President, Neuberger, since 2006; Employee, Management, since 1992; Vice President, nine registered investment companies for which Management acts as investment manager and administrator (nine since 2008). | |||
John M. McGovern (1970) | Treasurer and Principal Financial and Accounting Officer since 2005 | Senior Vice President, Neuberger, since 2007; formerly, Vice President, Neuberger, 2004 to 2006; Employee, Management, since 1993; Treasurer and Principal Financial and Accounting Officer, nine registered investment companies for which Management acts as investment manager and administrator (eight since 2005 and one since 2006); 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 2005 | Vice President, Neuberger, since 2006; Employee, Management, since 1995; Assistant Treasurer, nine registered investment companies for which Management acts as investment manager and administrator (eight since 2005 and one since 2006). | |||
Neil S. Siegel (1967) | Vice President since 2008 | Managing Director, Management, since 2008; Managing Director, Neuberger, since 2006; formerly, Senior Vice President, Neuberger, 2004 to 2006; Vice President, nine registered investment companies for which Management acts as investment manager and administrator (nine since 2008). | |||
Chamaine Williams (1971) | Chief Compliance Officer since 2005 | Senior Vice President, Neuberger, since 2007; Chief Compliance Officer, Management, since 2006; Chief Compliance Officer, nine registered investment companies for which Management acts as investment manager and administrator (eight since 2005 and one since 2006); 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. |
256
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 1-800-877-9700 (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 1-800-877-9700 (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 each 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 1-800-SEC-0330. The information on Form N-Q is available upon request, without charge, by calling 1-800-877-9700 (toll-free).
257
Board Consideration of the Management and Sub-Advisory Agreements
At a meeting held on April 13, 2011, the Board, including the Trustees who are not "interested persons" of Management (including its affiliates) or Neuberger Berman Equity Funds ("Independent Fund Trustees"), approved the Management and Sub-Advisory Agreements ("Agreements") for Neuberger Berman Global Equity Fund and Neuberger Berman Global Thematic Opportunities Fund (each a "Fund").
In evaluating the Agreements, the Board, including the Independent Fund Trustees, reviewed materials furnished by Management and Neuberger and met with senior representatives of Management and Neuberger regarding their personnel and operations. The Independent Fund Trustees were advised by counsel that is experienced in Investment Company Act of 1940 matters and that is independent of Management and Neuberger.
The Board considered the following factors, among others, in connection with its approval of the Agreements: (1) the nature, extent, and quality of the services to be provided by Management and Neuberger; (2) the expected costs of the services to be provided; (3) the extent to which economies of scale might be realized as each Fund grows; and (4) whether fee levels reflect any such potential economies of scale for the benefit of investors in each Fund. In their deliberations, the Board members did not identify any particular information that was all-important or controlling, and each Trustee may have attributed different weights to the various factors.
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.
With respect to the nature, extent and quality of the services provided, the Board considered the staffing of the portfolio management and investment research personnel of Management and Neuberger who perform services for each Fund and their experience. The Board also considered the composite performance of separate accounts that were managed by certain of the same portfolio managers using similar investment objectives, policies and strategies as each respective Fund. The Board noted that Management also provides certain administrative services, including fund accounting and compliance oversight. The Board also considered Management's and Neuberger's policies and practices regarding brokerage and allocation of portfolio transactions for each Fund. In addition, the Board noted the positive compliance history of Management and Neuberger, as each firm has been free of significant compliance problems.
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, Neuberger or their affiliates from their relationship with each Fund.
The Board reviewed a comparison of each Fund's management fee and overall expense ratio to a peer group of broadly comparable funds. In addition, the Board considered the contractual waiver of a portion of the management fee undertaken by Management and the contractual limits on each Fund's expenses undertaken by Management for each Fund. With regard to the sub-advisory fee paid to Neuberger, the Board noted that this fee is "at cost." The Board compared the fees charged to each Fund to the fees charged to separate accounts managed by Management or its affiliates with similar investment objectives, policies and strategies as the Fund. The Board considered the appropriateness and reasonableness of any differences between the fees charged to each Fund and such separate accounts and determined that the differences in fees were consistent with the management and other services provided. The Board discussed any anticipated economies of scale in relation to the services Management provides to each Fund, noting that the start-up phase of a fund may be too soon to properly evaluate all of the economies. The Board considered whether each 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 based on expected costs to be borne by Management in operating each Fund.
Conclusions
In approving the Agreements, the Board concluded that the terms of each Agreement are fair and reasonable 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 could be expected to provide a high level of service to each Fund; that each Fund's fee structure appeared to the Board to be reasonable given the nature and quality of services expected to be provided; and that the expected benefits accruing to Management and its affiliates by virtue of their relationship to each Fund were reasonable in comparison with the expected costs of providing the investment advisory services and the expected benefits accruing to each Fund.
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Notice to Shareholders (Unaudited)
Emerging Markets Equity Fund, Intrinsic Value Fund and Select Equities Fund hereby designate $546,041, $3,022,518 and $1,396,018, respectively, as a capital gain distribution.
For the fiscal year ended August 31, 2011, 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. These lower rates range from 5% to 15% depending upon an individual's tax bracket. Complete information regarding each Fund's distributions during the calendar year 2011 will be reported in conjunction with Form 1099-DIV.
Fund | Qualified Dividend Income | ||||
Emerging Markets Equity Fund | $ | 1,698,050 | |||
Equity Income Fund | 31,414,583 | ||||
Focus Fund | 9,369,757 | ||||
Genesis Fund | 208,158,478 | ||||
Global Equity Fund | 1,564 | ||||
Global Thematic Opportunities Fund | 31,841 | ||||
Guardian Fund | 19,520,133 | ||||
International Fund | 8,807,330 | ||||
International Institutional Fund | 7,014,165 | ||||
International Large Cap Fund | 5,170,005 | ||||
Intrinsic Value Fund | 772,879 | ||||
Large Cap Disciplined Growth Fund | 6,305,483 | ||||
Large Cap Value Fund | 31,371 | ||||
Multi-Cap Opportunities | 1,011,825 | ||||
Partners Fund | 32,628,948 | ||||
Regency Fund | 1,602,415 | ||||
Select Equities Fund | 1,019,913 | ||||
Socially Responsive Fund | 24,837,185 |
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Neuberger Berman Management LLC
605 Third Avenue 2nd Floor
New York, NY 10158–0180
Shareholder Services
800.877.9700
Intermediary Client 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.
H0599 10/11
Item 2. Code of Ethics.
The Board of Trustees (“Board”) of Neuberger Berman Equity Funds (“Registrant”) adopted a code of ethics that applies to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions (“Code of Ethics”). For the period covered by this Form N-CSR, there were no amendments to the Code of Ethics and there were no waivers from the Code of Ethics granted to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.
A copy of the Code of Ethics is incorporated by reference to the Registrant’s Form N-CSR, Investment Company Act file number 811-00582 (filed May 8, 2006). The Code of Ethics is also available, without charge, by calling 1-800-877-9700 (toll-free).
Item 3. Audit Committee Financial Expert.
The Board has determined that the Registrant has three audit committee financial experts serving on its audit committee. The Registrant’s audit committee financial experts are Martha Goss, George Morriss and Candace Straight. Ms. Goss, Mr. Morriss and Ms. Straight are independent trustees as defined by Form N-CSR.
Item 4. Principal Accountant Fees and Services.
Ernst & Young, LLP (“E&Y”) serves as independent registered public accounting firm to the Neuberger Berman Emerging Markets Equity, Equity Income, Focus, Genesis, Global Equity, Global Thematic Opportunities, Guardian, International, International Institutional, International Large Cap, Large Cap Value, Partners, Real Estate, and Select Equities Funds.
Tait, Weller & Baker LLP (“Tait Weller”) serves as independent registered public accounting firm to the Neuberger Berman Intrinsic Value, Large Cap Disciplined Growth, Mid Cap Growth, Multi-Cap Opportunities, Regency, Small Cap Growth, and Socially Responsive Funds.
(a) Audit Fees
The aggregate fees billed for professional services rendered by E&Y for the audit of the annual financial statements or services that are normally provided by E&Y in connection with statutory and regulatory filings or engagements were $591,500 and $609,775 for the fiscal years ended 2010 and 2011, respectively.
The aggregate fees billed for professional services rendered by Tait Weller for the audit of the annual financial statements or services that are normally provided by Tait Weller in connection with statutory and regulatory filings or engagements were $133,000 and $135,625 for the fiscal years ended 2010 and 2011, respectively.
(b) Audit-Related Fees
The aggregate fees billed to the Registrant for assurance and related services by E&Y that are reasonably related to the performance of the audit of the Registrant’s financial statements and are not
reported above in Audit Fees were $0 and $0 for the fiscal years ended 2010 and 2011, respectively. The Audit Committee approved 0% and 0% of these services provided by E&Y for the fiscal years ended 2010 and 2011, respectively, pursuant to the waiver provisions of Rule 2-01(c)(7)(i)(C) of Regulation S-X.
The fees billed to other entities in the investment company complex for assurance and related services by E&Y that are reasonably related to the performance of the audit that the Audit Committee was required to approve because the engagement related directly to the operations and financial reporting of the Registrant were $0 and $0 for the fiscal years ended 2010 and 2011, respectively. The Audit Committee approved 0% and 0% of these services provided by E&Y for the fiscal years ended 2010 and 2011, respectively, pursuant to the waiver provisions of Rule 2-01(c)(7)(i)(C) of Regulation S-X.
The aggregate fees billed to the Registrant for assurance and related services by Tait Weller that are reasonably related to the performance of the audit of the Registrant’s financial statements and are not reported above in Audit Fees were $0 and $0 for the fiscal years ended 2010 and 2011, respectively. The Audit Committee approved 0% and 0% of these services provided by Tait Weller for the fiscal years ended 2010 and 2011, respectively, pursuant to the waiver provisions of Rule 2-01(c)(7)(i)(C) of Regulation S-X.
The fees billed to other entities in the investment company complex for assurance and related services by Tait Weller that are reasonably related to the performance of the audit that the Audit Committee was required to approve because the engagement related directly to the operations and financial reporting of the Registrant were $0 and $0 for the fiscal years ended 2010 and 2011, respectively. The Audit Committee approved 0% and 0% of these services provided by Tait Weller for the fiscal years ended 2010 and 2011, respectively, pursuant to the waiver provisions of Rule 2-01(c)(7)(i)(C) of Regulation S-X.
(c) Tax Fees
The aggregate fees billed to the Registrant for professional services rendered by E&Y for tax compliance, tax advice, and tax planning were $141,500 and $147,750 for the fiscal years ended 2010 and 2011, respectively. The nature of the services provided were tax compliance, tax advice, and tax planning. The Audit Committee approved 0% and 0% of these services provided by E&Y for the fiscal years ended 2010 and 2011, respectively, pursuant to the waiver provisions of Rule 2-01(c)(7)(i)(C) of Regulation S-X.
The fees billed to other entities in the investment company complex for professional services rendered by E&Y for tax compliance, tax advice, and tax planning that the Audit Committee was required to approve because the engagement related directly to the operations and financial reporting of the Registrant were $0 and $0 for the fiscal years ended 2010 and 2011, respectively. The Audit Committee approved 0% and 0% of these services provided by E&Y for the fiscal years ended 2010 and 2011, respectively, pursuant to the waiver provisions of Rule 2-01(c)(7)(i)(C) of Regulation S-X.
The aggregate fees billed to the Registrant for professional services rendered by Tait Weller for tax compliance, tax advice, and tax planning were $26,000 and $22,750 for the fiscal years ended 2010 and 2011, respectively. The nature of the services provided were tax compliance, tax advice, and tax planning. The Audit Committee approved 0% and 0% of these services provided by Tait Weller for the fiscal years ended 2010 and 2011, respectively, pursuant to the waiver provisions of Rule 2-01(c)(7)(i)(C) of Regulation S-X.
The fees billed to other entities in the investment company complex for professional services rendered by Tait Weller for tax compliance, tax advice, and tax planning that the Audit Committee was required to approve because the engagement related directly to the operations and financial reporting of the Registrant were $0 and $0 for the fiscal years ended 2010 and 2011, respectively. The Audit Committee approved 0% and 0% of these services provided by Tait Weller for the fiscal years ended 2010 and 2011, respectively, pursuant to the waiver provisions of Rule 2-01(c)(7)(i)(C) of Regulation S-X.
(d) All Other Fees
The aggregate fees billed to the Registrant for products and services provided by E&Y, other than services reported in Audit Fees, Audit-Related Fees, and Tax Fees were $0 and $0 for the fiscal years ended 2010 and 2011, respectively. The Audit Committee approved 0% and 0% of these services provided by E&Y for the fiscal years ended 2010 and 2011, respectively, pursuant to the waiver provisions of Rule 2-01(c)(7)(i)(C) of Regulation S-X.
The fees billed to other entities in the investment company complex for products and services provided by E&Y, other than services reported in Audit Fees, Audit-Related Fees, and Tax Fees that the Audit Committee was required to approve because the engagement related directly to the operations and financial reporting of the Registrant were $0 and $0 for the fiscal years ended 2010 and 2011, respectively. The Audit Committee approved 0% and 0% of these services provided by E&Y for the fiscal years ended 2010 and 2011, respectively, pursuant to the waiver provisions of Rule 2-01(c)(7)(i)(C) of Regulation S-X.
The aggregate fees billed to the Registrant for products and services provided by Tait Weller, other than services reported in Audit Fees, Audit-Related Fees, and Tax Fees were $0 and $0 for the fiscal years ended 2010 and 2011, respectively. The Audit Committee approved 0% and 0% of these services provided by Tait Weller for the fiscal years ended 2010 and 2011, respectively, pursuant to the waiver provisions of Rule 2-01(c)(7)(i)(C) of Regulation S-X.
The fees billed to other entities in the investment company complex for products and services provided by Tait Weller, other than services reported in Audit Fees, Audit-Related Fees, and Tax Fees that the Audit Committee was required to approve because the engagement related directly to the operations and financial reporting of the Registrant were $0 and $0 for the fiscal years ended 2010 and 2011, respectively. The Audit Committee approved 0% and 0% of these services provided by Tait Weller for the fiscal years ended 2010 and 2011, respectively, pursuant to the waiver provisions of Rule 2-01(c)(7)(i)(C) of Regulation S-X.
(e) Audit Committee’s Pre-Approval Policies and Procedures
(1) The Audit Committee’s pre-approval policies and procedures for the Registrant to engage an accountant to render audit and non-audit services delegate to each member of the Committee the power to pre-approve services between meetings of the Committee.
(2) None of the services described in paragraphs (b) through (d) above were approved by the Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Hours Attributed to Other Persons
Not applicable.
(g) Non-Audit Fees
Non-audit fees billed by E&Y for services rendered to the Registrant were $141,500 and $174,968 for the fiscal years ended 2010 and 2011, respectively.
Non-audit fees billed by E&Y for services rendered to the Registrant’s investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the Registrant were $0 and $0 for the fiscal years ended 2010 and 2011, respectively.
Non-audit fees billed by Tait Weller for services rendered to the Registrant were $26,000 and $22,750 for the fiscal years ended 2010 and 2011, respectively.
Non-audit fees billed by Tait Weller for services rendered to the Registrant’s investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the Registrant were $0 and $0 for the fiscal years ended 2010 and 2011, respectively.
(h) The Audit Committee of the Board considered whether the provision of non-audit services rendered to the Registrant’s investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the Registrant that were not pre-approved by the Audit Committee because the engagement did not relate directly to the operations and financial reporting of the Registrant is compatible with maintaining E&Y’s and Tait Weller’s independence.
Item 5. Audit Committee of Listed Registrants.
Not applicable to the Registrant.
Item 6. Schedule of Investments.
The complete schedule of investments for each series is disclosed in the Registrant’s Annual Report, which is included as Item 1 of this Form N-CSR.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to the Registrant.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to the Registrant.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to the Registrant.
Item 10. Submission of Matters to a Vote of Security Holders.
There were no changes to the procedures by which shareholders may recommend nominees to the Board.
Item 11. Controls and Procedures.
(a) | Based on an evaluation of the disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “Act”)) as of a date within 90 days of the filing date of this document, the Chief Executive Officer and Treasurer and Principal Financial and Accounting Officer of the Registrant have concluded that such disclosure controls and procedures are effectively designed to ensure that information required to be disclosed by the Registrant on Form N-CSR and Form N-Q is accumulated and communicated to the Registrant’s management to allow timely decisions regarding required disclosure. |
(b) | There were no significant changes in the Registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the Registrant’s second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
Item 12. Exhibits.
(a)(1) | A copy of the Code of Ethics is incorporated by reference to the Registrant’s Form N-CSR, Investment Company Act file number 811-00582 (filed May 8, 2006). |
(a)(2) | The certifications required by Rule 30a-2(a) of the Act and Section 302 of the Sarbanes-Oxley Act of 2002 (“Sarbanes-Oxley Act”) are filed herewith. |
(a)(3) | Not applicable to the Registrant. |
(b) | The certifications required by Rule 30a-2(b) of the Act and Section 906 of the Sarbanes-Oxley Act are filed herewith. |
The certifications provided pursuant to Rule 30a-2(b) of the Act and Section 906 of the Sarbanes-Oxley Act are not deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), or otherwise subject to the liability of that section. Such certifications will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended or the Exchange Act, except to the extent that the Registrant specifically incorporates them by reference.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Neuberger Berman Equity Funds
By: | /s/ Robert Conti | |
Robert Conti Chief Executive Officer |
Date: October 25, 2011
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By: | /s/ Robert Conti | |
Robert Conti Chief Executive Officer |
Date: October 25, 2011
By: | /s/ John M. McGovern | |
John M. McGovern Treasurer and Principal Financial and Accounting Officer |
Date: October 25, 2011