As filed with the Securities and Exchange Commission on November 2, 2012
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, 2012
Date of reporting period: August 31, 2012
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 | Class A Shares | ||||
Trust Class Shares | Class C Shares | ||||
Advisor Class Shares | Class R3 Shares | ||||
Institutional Class Shares | |||||
Emerging Markets Equity Fund | Large Cap Disciplined Growth Fund | ||||
Equity Income Fund | Large Cap Value Fund | ||||
Focus Fund | (Formerly Partners Fund) | ||||
Genesis Fund | Mid Cap Growth Fund | ||||
Global Equity Fund | Mid Cap Intrinsic Value Fund | ||||
Global Thematic Opportunities Fund | (Formerly Regency Fund) | ||||
Guardian Fund | Multi-Cap Opportunities Fund | ||||
International Fund | Real Estate Fund | ||||
International Institutional Fund | Select Equities Fund | ||||
International Large Cap Fund | Small Cap Growth Fund | ||||
Intrinsic Value Fund | Socially Responsive Fund | ||||
Value Fund | |||||
(Formerly Large Cap Value Fund) | |||||
Annual Report | |||||
August 31, 2012 |
Contents | |||||
THE FUNDS | |||||
President's Letter | 1 | ||||
PORTFOLIO COMMENTARY | |||||
Emerging Markets Equity Fund | 2 | ||||
Equity Income Fund | 6 | ||||
Focus Fund | 10 | ||||
Genesis Fund | 14 | ||||
Global Equity Fund | 18 | ||||
Global Thematic Opportunities Fund | 22 | ||||
Guardian Fund | 26 | ||||
International Fund | 30 | ||||
International Institutional Fund | 34 | ||||
International Large Cap Fund | 37 | ||||
Intrinsic Value Fund | 41 | ||||
Large Cap Disciplined Growth Fund | 45 | ||||
Large Cap Value Fund (Formerly Partners Fund) | 49 | ||||
Mid Cap Growth Fund | 53 | ||||
Mid Cap Intrinsic Value Fund (Formerly Regency Fund) | 57 | ||||
Multi-Cap Opportunities Fund | 61 | ||||
Real Estate Fund | 65 | ||||
Select Equities Fund | 69 | ||||
Small Cap Growth Fund | 73 | ||||
Socially Responsive Fund | 77 | ||||
Value Fund (Formerly Large Cap Value Fund) | 81 | ||||
FUND EXPENSE INFORMATION | 90 | ||||
SCHEDULE OF INVESTMENTS/TOP TEN EQUITY HOLDINGS | |||||
Emerging Markets Equity Fund | 94 | ||||
Equity Income Fund | 97 | ||||
Focus Fund | 100 | ||||
Genesis Fund | 101 | ||||
Global Equity Fund | 104 |
Global Thematic Opportunities Fund | 107 | ||||
Guardian Fund | 110 | ||||
International Fund | 111 | ||||
International Institutional Fund | 114 | ||||
International Large Cap Fund | 117 | ||||
Intrinsic Value Fund | 120 | ||||
Large Cap Disciplined Growth Fund | 122 | ||||
Large Cap Value Fund (Formerly Partners Fund) | 124 | ||||
Mid Cap Growth Fund | 126 | ||||
Mid Cap Intrinsic Value Fund (Formerly Regency Fund) | 128 | ||||
Multi-Cap Opportunities Fund | 130 | ||||
Real Estate Fund | 131 | ||||
Select Equities Fund | 132 | ||||
Small Cap Growth Fund | 133 | ||||
Socially Responsive Fund | 135 | ||||
Value Fund (Formerly Large Cap Value Fund) | 136 | ||||
FINANCIAL STATEMENTS | 151 | ||||
FINANCIAL HIGHLIGHTS (ALL CLASSES) PER SHARE DATA | |||||
Emerging Markets Equity Fund | 213 | ||||
Equity Income Fund | 213 | ||||
Focus Fund | 215 | ||||
Genesis Fund | 217 | ||||
Global Equity Fund | 219 | ||||
Global Thematic Opportunities Fund | 219 | ||||
Guardian Fund | 221 | ||||
International Fund | 223 | ||||
International Institutional Fund | 225 | ||||
International Large Cap Fund | 225 | ||||
Intrinsic Value Fund | 227 | ||||
Large Cap Disciplined Growth Fund | 229 | ||||
Large Cap Value Fund (Formerly Partners Fund) | 231 | ||||
Mid Cap Growth Fund | 233 | ||||
Mid Cap Intrinsic Value Fund (Formerly Regency Fund) | 235 | ||||
Multi-Cap Opportunities Fund | 237 |
Real Estate Fund | 239 | ||||
Select Equities Fund | 241 | ||||
Small Cap Growth Fund | 241 | ||||
Socially Responsive Fund | 245 | ||||
Value Fund (Formerly Large Cap Value Fund) | 247 | ||||
Reports of Independent Registered Public Accounting Firms | 255 | ||||
Directory | 257 | ||||
Trustees and Officers | 258 | ||||
Proxy Voting Policies and Procedures | 266 | ||||
Quarterly Portfolio Schedule | 266 | ||||
Notice to Shareholders | 267 | ||||
Report of Votes of Shareholders | 268 |
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. ©2012 Neuberger Berman Management LLC. All rights reserved.
President's Letter
Dear Fellow Shareholder,
Despite challenging macroeconomic conditions, the S&P 500 Index advanced 18% over the past fiscal year. Its route was not direct, however. Equities saw tremendous volatility, cycling between fear-driven declines and relief rallies as investors focused on three key issues—the ongoing European sovereign debt crisis, the direction of the U.S. economy, and the potential global impact of a growth slowdown in China.
In the fall of 2011, markets suffered as fears of contagion within the eurozone and beyond reached new highs, incorporating the possibility of a second global banking collapse and dissolution of the euro. In the U.S., high unemployment, low consumer confidence and weak retail sales, productivity and manufacturing statistics also affected sentiment. Further, growth appeared to be slowing in the BRIC economies (Brazil, Russia, India and China), with repercussions for global growth as well as the global commodity cycle.
In December, markets rallied as the European Central Bank (ECB) presented a viable option for relieving pressure on eurozone banks through LTRO (long-term refinancing option) programs. This dovetailed with stronger-than-expected first quarter results from U.S. corporations—due in part to an unusually mild winter in North America—in fueling the rally through April.
Momentum reversed in May, on renewed concerns from Europe, where Greek voters rejected austerity platforms and Spain's largest bank requested a bailout on real estate losses. Slower economic growth data from the U.S. and China, which has seen GDP decline from roughly 10.5% in 2010 to 7.5% in 2012, added to the downward pressure.
From June through the end of August, markets recovered on anticipation of additional support from the Federal Reserve and ECB, which in fact occurred in September, just after this period closed. Federal Reserve Chairman Bernanke announced "QE3," designed to keep interest rates low and buoy employment in the U.S., just after ECB President Draghi announced "OMT," a plan to buy additional sovereign bonds to help strengthen the eurozone.
When markets are driven by macroeconomic factors and central bank policy, it is typically difficult for fundamentals-focused active managers to outperform. This period was no exception. With a high level of correlation among stocks, and a great deal of fear driving investor sentiment, investors flocked to the relative safety of U.S. large- and mega-cap stocks, especially those with high yields. Less attention was given to company-specific fundamentals such as earnings, cash flows, and balance sheet strength, or competitive advantages—factors our portfolio managers consider essential to longer-term outperformance.
As we look ahead, signals are mixed. U.S. GDP may fall below 2% for the second half of 2012, unemployment remains elevated, and industrial production and profit margins have declined. Politically, the upcoming "fiscal cliff" and tax and regulatory uncertainty add weight to the scale. In our opinion, recession in Europe is likely, and China has slowed significantly. Additionally, geopolitical concerns, especially in the Middle East, are on the rise.
At the same time, positive trends are evident, particularly in the U.S. QE3 represents a commitment to low interest rates through 2015—which is good for businesses and consumers. Consumer sentiment rose in August, with optimism largely tied to improvements in household balance sheets. While still elevated at 8.1% (as of the end of August), unemployment has dropped steadily throughout the year. In housing, new starts and sales of existing homes are up, perhaps signaling the sector has bottomed. Retail had a strong back-to-school season, and North American energy production innovations could have lasting impacts across various industry sectors.
Within the stock market, valuations remain attractive and fundamentals are strong. With equities offering good opportunity, especially relative to current bond yields, inflows from cash on the sidelines could also be positive. Until some of the uncertainties subside, however, volatility could continue. Experienced investors know that over time, the markets reward businesses that outperform. Our managers continue to apply their disciplines, using research, analysis, insight, and expertise to identify what they believe are the best ideas for the longer-term.
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 –4.53% total return for the fiscal year ended August 31, 2012. In a difficult market, the Fund outperformed its benchmark, the MSCI Emerging Markets (EM) Index, which reported a –5.48% total return for the period. (Performance for all share classes is provided in the table immediately following this letter.)
Emerging markets, as measured by the MSCI EM Index, were negative during the past fiscal year, a period of tremendous volatility and investor risk aversion. Globally, market activity was driven in large part by European sovereign debt concerns, but fears of a hard landing in China and stalling growth in Brazil also weighed on investor sentiment. Although constructive monetary policy statements buoyed the index to a slightly positive level for calendar-year-to-date 2012, it was not enough to erase fall 2011's deficit, when the index fell close to 20%.
The index lagged the developed international markets this period, as measured by the MSCI EAFE® Index, and both lagged the relatively stable U.S. market, which was favored by investors as a relative "safe haven" against global uncertainty. While all of the BRIC markets (Brazil, Russia, India and China) declined, more domestically driven markets, including the Philippines and Malaysia, provided positive returns. From a sector perspective, Information Technology (IT)—led by the surging Korean consumer electronics and IT hardware equipment manufacturing giant, Samsung Electronics—and the more defensive Consumer Staples and Health Care sectors significantly outperformed, while Materials, Energy and Industrials lagged on concerns of a Chinese industrial slowdown.
Strong stock selection was the key to the portfolio's outperformance this cycle. This was particularly significant within the Consumer Staples, Energy and Materials sectors. Consumer Discretionary, IT and Telecommunication Services holdings held back returns. In terms of country, selection within Russia, South Africa and Indonesia was most beneficial to the portfolio. Holdings in Brazil and India, where growth has slowed, and Korea were negative for performance.
Top performers during the fiscal year included Samsung, which posted strong results due to better-than-expected sales of Galaxy handsets, strong IT component sales and improving supply. Tencent, the Chinese social networking company, was another top contributor, outperforming on forecasts of improving margins and positive results from technology and marketing investments. Magnit, the leading Russian food retailer, was also up. The company continues to report strong sales growth and an expanding number of stores.
Significant detractors this period were led by Vale, the leading Brazilian iron ore company, whose stock fell as the price of iron ore declined 30%. QGEP, a Brazilian oil explorer, had poor test-well results from its offshore oil fields. PDG Realty, the Brazilian homebuilder, has struggled to maintain its margins as it has experienced cost overruns. QGEP and PDG were sold.
As 2012 progressed, the global equity markets' first-quarter rally gave way to a second-quarter retreat, as policy and macroeconomic uncertainty continued to dominate Europe, the U.S. and China. The Chinese economy continued to slow, especially in the industrial sector, where the country's August 2012 manufacturing activity indicator grew the least in more than three years. The Chinese government is starting to offer more targeted accommodative economic policies. We anticipate that the consumer will be the main beneficiary for the immediate future, as the markets wait in anticipation of broader measures to stimulate growth. On the other side of the globe in Brazil, the Central Bank continues to cut its interest rate to encourage growth as its economy continues to slow. Brazilian GDP decelerated throughout 2011 and stalled in the first half of 2012.
Our most recent meetings with companies from these countries confirm the lackluster economic growth, and we've positioned the Fund accordingly. In China, we continue to favor the domestic smaller companies. Regarding Brazil, we remain underweight, relative to the benchmark, given the poor outlook provided by the companies we visited.
From a sector perspective, Health Care is our largest overweight, which we believe offers domestic growth opportunities that are not well represented in the index. We have increased our overweight in Consumer Staples, which was driven by
2
stock-specific decisions where we found opportunities to buy strong brands that were trading at discounted valuations earlier in the fiscal year. Financials are an underweight, but we are taking a closer look at specific opportunities where government policy may spur greater lending. We also are underweighted in Telecommunication Services, where intense competition and regulation has been leading to lower returns.
While the markets may remain volatile until some of the factors driving global uncertainty recede, we continue to find what we consider excellent investment opportunities across the spectrum. We continue to believe bottom-up stock selection, the key to our relative outperformance this fiscal year, will continue to be a differentiator over the long term.
Sincerely,
Conrad Saldanha
Portfolio Manager
Information about the principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
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 | 8.1 | % |
Consumer Staples | 11.5 | |
Energy | 11.5 | |
Financials | 19.6 | |
Health Care | 5.8 | |
Industrials | 8.8 | |
Information Technology | 15.4 | |
Materials | 10.6 | |
Telecommunication Services | 4.5 | |
Utilities | 1.7 | |
Short-Term Investments | 2.5 | |
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS9 | ||||||||||
Average Annual Total Return Ended 08/31/2012 | ||||||||||
Inception Date | 1 Year | Life of Fund | ||||||||
At NAV | ||||||||||
Institutional Class | 10/08/2008 | –4.53 | % | 14.51 | % | |||||
Class A | 10/08/2008 | –4.84 | % | 14.23 | % | |||||
Class C | 10/08/2008 | –5.50 | % | 13.39 | % | |||||
Class R310 | 06/21/2010 | –5.22 | % | 14.07 | % | |||||
With Sales Charge | ||||||||||
Class A | –10.31 | % | 12.51 | % | ||||||
Class C | –6.44 | % | 13.39 | % | ||||||
Index | ||||||||||
MSCI Emerging Markets Index1,16 | –5.48 | % | 12.78 | % |
The performance data quoted represent past performance and do not indicate future results. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Management LLC ("Management") had not reimbursed certain expenses and/or waived a portion of the investment management fees during certain of the periods shown. Repayment by a class (of expenses previously reimbursed and/or fees previously waived by Management) will decrease the class's returns. Please see Note B in the Notes to Financial Statements for specific information regarding expense reimbursement and/or fee waiver arrangements.
As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2011 were 2.56%, 3.22%, 3.81% and 8.02% for Institutional Class, Class A, Class C and Class R3 shares, respectively (before expense reimbursements and/or fee waivers, if any). These expense ratios were 1.26%, 1.51%, 2.26% and 1.92% for Institutional Class, Class A, Class C and Class R3, respectively, after expense reimbursements and/or fee waivers.
Returns shown with a sales charge reflect the deduction of the current maximum initial sales charge of 5.75% for Class A shares and the applicable contingent deferred sales charges (CDSC) for Class C shares. The maximum CDSC for Class C shares is 1%, which is reduced to 0% after 1 year. The performance of the Fund's share classes will differ primarily due to different sales charge structures and class expenses. Please see the prospectus for more information about sales charge structures, if any, and class expenses for your share class.
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. The results shown in the graph reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
5
Equity Income Fund Commentary (Unaudited)
Neuberger Berman Equity Income Fund Institutional Class generated an 8.49% total return for the fiscal year ended August 31, 2012, trailing the 18.00% total return of its benchmark, the S&P 500 Index. (Performance for all share classes is provided in the table immediately following this letter.)
Global equity markets were anxious and volatile during much of the past fiscal year. Fears were stoked by a perceived slowdown in economic growth—in Europe, where the sovereign debt crisis continued to worry markets; in China, Europe's key trading partner, where an engineered slowdown was constraining growth; and in the U.S., where the economy appeared to remain weak. Regardless, the S&P 500 closed the period up significantly, expanding on "green shoots" in the domestic economy, constructive statements from the European Central Bank (ECB), and global investors' emphasis on the U.S. as a relative "safe haven."
The Equity Income strategy is designed to provide returns between those available from stocks and bonds, focusing on a high level of income. As such, performance was generally in line with our expectations. While the market shifted on macroeconomic news, much of the concern in the market related to a potential change in the tax treatment of dividends.
For us, the most important question is where to find the best opportunity for increasing yields, especially in a meager interest rate environment. For example, Utilities with a 4% dividend yield would still outyield 10-year Treasuries at a combined state and federal tax rate of 50%. Further, two of our portfolio components, Real Estate Investment Trusts (REITs) and Convertible Bonds, would not be affected by any of the potential changes to dividend taxation, as their dividends are already non-qualified.
During the past fiscal year, the index was dominated by Information Technology and Financials names including Apple, IBM and the money center banks—stocks we did not own. When companies like these drive performance, our strategy tends to lag somewhat. Our portfolio is also predominately invested in small- and mid-cap companies, where we see superior relative opportunity over the longer term. In this market, however, large-cap stocks led.
While defensive allocations generally hurt relative performance this period, we are as interested in income as we are in growth. The Utilities sector, always an overweight, was one example. In addition to sector-level underperformance, Exelon and Enersis detracted. Exelon, a longer-term investment with good valuations and a great current yield, lagged as nuclear power remained out of favor. Enersis, a strong and growing Chilean utility we discovered during a research trip to South America, underperformed as investors shunned emerging markets.
One of our current themes within Utilities is pipeline businesses. This gives us "back door" exposure to some of the growth potential of the Energy sector without commodity price volatility. Even though natural gas prices are low, we believe there is money to be made transporting the commodity.
Convertible bonds are another defensive portion of the portfolio, which we use for downside protection. While our exposure was relatively light this period, convertibles—especially those with exposure to China-related commodity price weakness—underperformed. Patriot Coal, our largest detractor, filed for Chapter 11 bankruptcy in July. We continue to have a small allocation to this name on the possibility of rising winter and export demand. Another weak commodity-related security, Molycorp, a rare earth minerals leader, was sold.
We use options in an attempt to enhance income. During the past fiscal year, our use of options had a positive impact on performance.
Our "other" global dividend paying stock segment was generally beneficial, with the caveat that our average cap size was smaller than the S&P 500. We had mixed results in Energy. Bonavista was a detractor. The Canadian oil and gas firm, which we have since sold, declined on perceived slow demand from China, along with low natural gas prices. On the flipside, we sold Colombia's Ecopetrol, a key contributor to performance, as it hit our price target.
6
Consumer Staples names including Philip Morris International and Treasury Wine Estates outperformed on strong sales within emerging markets. Two additional top contributors were in the Telecommunication Services sector—CenturyLink and Taiwan Mobile. The former is moving into cloud computing, and the latter enjoys growing subscription rates. We believe both offer high free cash flows and competitive dividends. In Financials, Warsaw Stock Exchange, a company with a great current yield that we anticipated would benefit as European governments divested of public assets, disappointed, as did Apollo, a mezzanine debt firm we sold in the first half of the period.
Our REITs holdings generally performed well this period. While Lippo Malls Indonesia, a retail REIT, was sold after declining due to concerns about weaker growth in China and its potential impact on Asian consumers, specialty REITs including Weyerhaeuser, Ventas, RLJ Lodging, HCP and Digital Realty Trust strongly outperformed. We have trimmed selected specialty REITs holdings on strong performance and are slowly edging back into traditional domestic REITs where we see healthy and improving balance sheets.
Looking ahead, we will continue to manage a differentiated portfolio, seeking healthy and attractively priced companies with high cash flows, lower debt and records of rewarding shareholders. With company managements expressing plans to raise dividends and equity markets that could see cash flows increase if uncertainties decline, we believe this could become a very attractive environment for the portfolio—particularly relative to bonds in the current low-yield environment.
Sincerely,
Richard S. Levine, Tony Gleason and Sandy Pomeroy
Portfolio Co-Managers
Information about the principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The 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 | 3.0 | % | ||
Consumer Staples | 3.7 | |||
Energy | 8.0 | |||
Financials | 21.4 | |||
Health Care | 7.9 | |||
Industrials | 1.4 | |||
Information Technology | 3.5 | |||
Materials | 8.4 | |||
Telecommunication Services | 9.4 | |||
Utilities | 16.7 | |||
Other | 11.8 | |||
Short-Term Investments | 4.8 | |||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS9 | |||||||||||||
Average Annual Total Return Ended 08/31/2012 | |||||||||||||
Inception Date | 1 Year | 5 Years | Life of Fund | ||||||||||
At NAV | |||||||||||||
Institutional Class14 | 06/09/2008 | 8.49 | % | 6.52 | % | 6.91 | % | ||||||
Class A14 | 06/09/2008 | 8.09 | % | 6.16 | % | 6.61 | % | ||||||
Class C14 | 06/09/2008 | 7.40 | % | 5.53 | % | 6.06 | % | ||||||
Class R314 | 06/21/2010 | 7.78 | % | 6.20 | % | 6.64 | % | ||||||
With Sales Charge | |||||||||||||
Class A14 | 1.83 | % | 4.91 | % | 5.53 | % | |||||||
Class C14 | 6.40 | % | 5.53 | % | 6.06 | % | |||||||
Index | |||||||||||||
S&P 500 Index1,16 | 18.00 | % | 1.28 | % | 2.68 | % |
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 endnote 14 for information about the effects of the different fees paid by each class.
The performance data quoted represent past performance and do not indicate future results. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Management LLC ("Management") had not reimbursed certain expenses and/or waived a portion of the investment management fees during certain of the periods shown. Repayment by a class (of expenses previously reimbursed and/or fees previously waived by Management) will decrease the class's returns. Please see Note B in the Notes to Financial Statements for specific information regarding expense reimbursement and/or fee waiver arrangements.
As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2011 were 0.81%, 1.17%, 1.92% and 4.33% for Institutional Class, Class A, Class C and Class R3 shares, respectively (before expense reimbursements and/or fee waivers, if any). The expense ratio was 1.42% for Class R3 shares after expense reimbursements and/or fee waivers. The total annual operating expense ratio for each of Institutional Class, Class A and Class C includes the class's repayment of expenses previously reimbursed and/or fees previously waived by Management.
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.
8
Equity Income Fund (Unaudited)
COMPARISON OF A $1,000,000 INVESTMENT14 |
(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. The results shown in the graph reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
9
Focus Fund Commentary (Unaudited)
Neuberger Berman Focus Fund Investor Class generated a 16.10% total return for the fiscal year ended August 31, 2012, yet trailed its benchmark, the S&P 500 Index, which posted an 18.00% total return. (Performance for all share classes is provided in the table immediately following this letter.)
The equity market displayed remarkable resiliency over the past 12 months as stocks in general rose on periodic signs of economic strength in the U.S. and fiscal progress in Europe, and faltered only temporarily on negative news that emerged during the year. In the first few months of the fiscal year, the market was rather volatile as concerns about the European debt crisis largely overshadowed positive data from the domestic front in areas such as consumer spending and manufacturing, as well as strong corporate earnings. However, a confidence-fueled rally ensued over the next several months as U.S. economic data continued to surprise to the upside, earnings remained robust, and European authorities devised measures to avert a financial catastrophe. The release of the Federal Reserve "stress test" results in March also gave a boost to the financial market as it removed an element of uncertainty for the banking industry. Equities retreated somewhat in the April–June period as the situation in Europe seemed to worsen with news of an imminent sovereign debt default by Greece and soaring Spanish bonds yields. In addition, macro data out of China highlighted a possible slowdown in the region, and manufacturing and industrial production data in the U.S. came in below expectations. Yet the summer months brought another rally in the market as efforts by the European Central Bank to preserve the euro and maintain financial stability assuaged doomsday fears. Although U.S. economic data were mixed, with a slowdown in manufacturing occurring alongside a rise in consumer spending, investors seemed to view the negative data in a positive light in that it increases the possibility of further monetary easing.
As the market pushed through the adverse data and continued its rise over the fiscal year, performance leadership shifted between defensive and cyclical stocks. Specifically, the Telecommunication Services sector was the strongest sector in the S&P 500 followed by Information Technology (IT) and Consumer Discretionary. By the same token, the more economically sensitive Energy and Materials segments lagged the broader market for the period, along with the defensive Utilities sector.
Fund performance relative to the index benefited largely from stronger returns in Consumer Discretionary and IT. Within Consumer Discretionary, the greatest driver of outperformance was a cable and media holding, Comcast. The stock rose alongside other cable and media stocks in response to strengthening advertising trends, as global ad spending has been on the rebound both online and on cable networks. Comcast itself has also done particularly well and outperformed its cable peers as the company is experiencing a turnaround in demand for its video business, is reducing capital spending, and is generating significant growth in its SME (small-medium business) segment. Its recent acquisition of NBC Universal is also going well; the network received a ratings boost from its coverage of the Olympics, and it is expected to generate substantial fee revenue growth over the next five years as underpriced legacy contracts roll-off and NBC Universal renegotiates affiliate fees to market price levels. Despite the recent run-up in Comcast's share price, we believe the stock remains attractively valued in light of its solid fundamentals, strong organic growth profile, and favorable current dividend yield. The largest source of gains in IT on a relative basis (and one of the largest on an absolute basis) came from software company Oracle Corp. The stock was volatile during the 12-month period and posted a rather modest overall return, but we sold our position in Oracle and later added it back at advantageous price points. This activity gave a significant boost to Fund performance for the year. We like the stock for its defensive characteristics, as over half of Oracle's revenues and earnings have historically come from recurring maintenance contracts, and we believe the company is well positioned to benefit from the current application "refresh cycle" among enterprises as well as growth in the integrated appliance market, both of which are still in the early stages of unfolding.
On the downside, our Energy and Materials sector investments underperformed during the period and were the greatest detractors from absolute and relative performance. The main source of weakness within Energy was our exposure to oil services company Halliburton. Over the fiscal year the large-cap oil services names in general significantly underperformed the market due to heightened concern that overcapacity in North America pressure pumping will cause
10
a substantial drop in activity and lead to a fall-off in demand for drilling services. Our long-term outlook for the drilling industry is far more sanguine, however, as we anticipate that recovering gas prices in the U.S. and solid long-term oil prices should lead to increased drilling activity and a rising need for drilling services in the U.S and throughout the world. Nonetheless, we exited our position in Halliburton during the period as we saw other investments with greater return potential in the intermediate term. The largest relative detractor from performance in Materials was Potash Corp., a fertilizer producer. The stock experienced a significant drop early in the period along with other fertilizer and commodity-sensitive names on signs of economic weakness in the U.S. and the mounting fear that the debacle in Europe could cause another recession here at home. The concern for these names is that a recession would hurt demand for food and, in turn, curb farmer's spending on fertilizer. Similar to our outlook for oil and gas, however, we believe that the long term supply-demand picture for fertilizer remains favorable as this capacity-constrained industry struggles to meet rising food needs throughout the world. Still, we sold our position in Potash during the period as we saw other investments that we believe offer more favorable upside potential in the interim.
We believe there are numerous events on the horizon that could have a material impact on the stock market, at least in the short term. Some of them include the upcoming presidential election, monetary decisions by the Federal Reserve, and legislative outcomes surrounding issues such as the U.S. "fiscal cliff" and health care reform. We believe the credit situation in Europe is likely to continue influencing investor activity, and escalating geopolitical tensions involving Iran and other parts of the Middle East could come to a head and cause a shock to the global market. How or when these events will unfold is unknown, but we continue to believe that equity valuations on the whole are attractive, and that the U.S. Federal Reserve, as well as authorities in Europe and China, are committed to supporting economic growth in their regions in the face of all these challenges. While we continue to manage the Fund with an eye towards the precarious macro environment, our stock selection decisions are largely based on the longer-term picture. Our primary objective, therefore, remains to invest in stocks with strong fundamentals trading at what we deem are favorable valuations in order to create a fund that can weather the potential macro storms and outperform over the course of an economic cycle.
Sincerely,
Tim Creedon And David Levine
Portfolio Co-Managers
Information about the principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The 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 | 14.4 | % | |
Consumer Staples | 10.2 | ||
Energy | 11.3 | ||
Financials | 14.2 | ||
Health Care | 11.5 | ||
Industrials | 9.3 | ||
Information Technology | 20.3 | ||
Materials | 4.1 | ||
Utilities | 3.6 | ||
Short-Term Investments | 1.1 | ||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS8 | |||||||||||||||||||
Average Annual Total Return Ended 08/31/2012 | |||||||||||||||||||
Inception Date | 1 Year | 5 Years | 10 Years | Life of Fund | |||||||||||||||
At NAV | |||||||||||||||||||
Investor Class | 10/19/1955 | 16.10 | % | –0.46 | % | 6.49 | % | 10.20 | % | ||||||||||
Trust Class3 | 08/30/1993 | 15.82 | % | –0.68 | % | 6.28 | % | 10.20 | % | ||||||||||
Advisor Class4 | 09/03/1996 | 15.68 | % | –0.88 | % | 6.06 | % | 10.14 | % | ||||||||||
Institutional Class5 | 06/21/2010 | 16.39 | % | –0.36 | % | 6.55 | % | 10.21 | % | ||||||||||
Class A20 | 06/21/2010 | 15.96 | % | –0.51 | % | 6.46 | % | 10.19 | % | ||||||||||
Class C20 | 06/21/2010 | 15.04 | % | –0.85 | % | 6.28 | % | 10.16 | % | ||||||||||
With Sales Charge | |||||||||||||||||||
Class A20 | 9.33 | % | –1.68 | % | 5.83 | % | 10.08 | % | |||||||||||
Class C20 | 14.04 | % | –0.85 | % | 6.28 | % | 10.16 | % | |||||||||||
Index | |||||||||||||||||||
S&P 500 Index1,16 | 18.00 | % | 1.28 | % | 6.51 | % | 9.81 | % |
The performance data quoted represent past performance and do not indicate future results. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Management LLC ("Management") had not reimbursed certain expenses and/or waived a portion of the investment management fees during certain of the periods shown. Repayment by a class (of expenses previously reimbursed and/or fees previously waived by Management) will decrease the class's returns. Please see Note B in the Notes to Financial Statements for specific information regarding expense reimbursement and/or fee waiver arrangements.
As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2011 were 0.97%, 1.16%, 1.32%, 0.85%, 2.20% and 2.93% for Investor Class, Trust Class, Advisor Class, Institutional Class, Class A and Class C shares, respectively (before expense reimbursements and/or fee waivers, if any). These expense ratios were 0.75%, 1.11% and 1.86% for Institutional Class, Class A and Class C shares, respectively, after expense reimbursements and/or fee waivers.
Returns shown with a sales charge reflect the deduction of the current maximum initial sales charge of 5.75% for Class A shares and the applicable contingent deferred sales charges (CDSC) for Class C shares. The maximum CDSC for Class C shares is 1%, which is reduced to 0% after 1 year. The performance of the Fund's share classes will differ primarily due to different sales charge structures and class expenses. Please see the prospectus for more information about sales charge structures, if any, and class expenses for your share class.
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. The results shown in the graph reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
13
Genesis Fund Commentary (Unaudited)
Neuberger Berman Genesis Fund Investor Class posted a 6.31% total return for the fiscal year ended August 31, 2012, underperforming its benchmark, the Russell 2000® Index, which provided a 13.40% total return for the period. (Performance for all share classes is provided in the table immediately following this letter.)
Despite periods of heightened volatility, the U.S. stock market generated strong results during the reporting period. Investor sentiment was impacted at times by a host of macro issues, including the ongoing European sovereign debt crisis, slowing global economic growth and uncertainties related to the U.S. "fiscal cliff" and the upcoming November elections. Market pullbacks proved to be temporary in nature, as stock prices were supported by generally solid corporate profits. That said, evidence of slowing growth, both domestically and globally, has emerged in recent quarters. More recently, equity markets appear to have been supported by expectations for monetary stimulation in most developed economies, including the U.S. and Europe.
As has been the case in the past, given our emphasis on higher quality/less speculative issues (companies with higher-than-average profitability and less financial leverage and which are less cyclical), the Fund tended to outperform the benchmark when the market declined and lag the benchmark when the market rose. This proved to be a challenge for the Fund given the market's overall strong performance during the reporting period.
Also detracting from results was the Fund's positioning in a number of sectors. In particular, an overweight to Energy, relative to the benchmark, was a negative for results as it was the only sector within the benchmark to post a negative absolute return during the reporting period. In addition, a number of our Energy holdings, including CARBO Ceramics and SM Energy, generated poor results. CARBO Ceramics manufactures ceramic proppant used to more effectively facilitate the flow of hydrocarbons in oil and gas reservoirs. The sharp decline in natural gas prices caused a supply/demand imbalance for CARBO Ceramics' products, which was exacerbated by a surge in competing lower-quality Chinese products. This inventory is being cleared and CARBO Ceramics is shifting product sales from natural gas to oil and natural gas liquids-oriented basins. SM Energy is a diversified exploration and production company, with major operations in the Eagle Ford and Bakken Shales. It has significant exposure to gas, gas liquids and oil. The stock sold off as investors became concerned about industry oversupply of gas liquids. While we continue to have a positive long-term outlook for both companies, we pared our exposure to the stocks in conjunction with our decision to lower the Fund's overall energy exposure given signs of slowing global growth.
Our positioning in the Health Care, Information Technology (IT) and Materials sectors was also detrimental to the Fund's performance. Within Health Care, we were hurt by our lack of exposure to largely non-profitable small-cap biotechnology and pharmaceutical companies whose stocks outperformed the benchmark. Our holding in Quality Systems, which provides electronic medical records and related services to the physician, small hospital and dental markets, was a drag on results. The company's stock has suffered due to concerns about slowing growth for the company's products and services. In our view, the stock appears to be oversold despite the recent fundamental shortfall. Within the IT sector, our position in Solera Holdings also detracted from results. Solera Holdings is a global provider of software and services to the automobile insurance claims processing industry. Its shares performed poorly due to concerns about the company's exposure to Europe, which represents approximately 60% of its total revenues. Finally, within Materials, our emphasis on higher-quality, "steady-Eddie" businesses was penalized, as they underperformed more cyclical, lower-quality materials companies.
Contributing to Fund performance was stock selection in a number of sectors. Within Consumer Staples, Church & Dwight was our top performer. This diversified consumer products company develops, manufactures and markets household and personal care products in the U.S. and around the world. Its share price moved higher as the company's value brands (e.g., lower-priced detergents) performed well in the macro-challenged environment. In addition, Church & Dwight generates substantial free cash flow, which it continues to use to make strategic acquisitions to bolster its bottom line. The Fund's positive performance in the Financials sector was driven by our holding in Harleysville Group, as it was
14
acquired by Nationwide Mutual Insurance at a substantial premium. Several holdings in the Consumer Discretionary sector contributed to performance, including the Fund's position in Tractor Supply. The company is the largest retail farm and ranch store chain in the U.S. Its stock price rose sharply higher as the company continued to generate strong financial results. Another standout was Oceaneering International in the Energy sector. The company is a leading provider of remotely operated vehicles (ROV) and other equipment used in subsea oil exploration and production. It benefited from the search for oil reserves in deeper waters around the globe.
Throughout the reporting period, we maintained our time-tested investment process which seeks to invest in high-quality companies with good balance sheets, free cash flow and higher return businesses with barriers to entry. That said, our sector overweights and underweights, relative to the benchmark, have become less pronounced. We felt this was appropriate given the number of potential outcomes regarding the global economy, the situation in the eurozone, the rapidly approaching "fiscal cliff" and other macro factors. For example, we reduced the Fund's overweight to the Energy sector, given our outlook for less robust growth and less demand from emerging market countries such as China. We believe the sovereign debt crisis in Europe may lead to subpar growth for some time to come and that U.S.-centric companies offer some of the best investment opportunities in today's uncertain market environment.
Sincerely,
Judith M. Vale and Robert D'alelio
Portfolio Co-Managers
Information about the principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The 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 | 9.3 | % | ||
Consumer Staples | 7.7 | |||
Energy | 9.7 | |||
Financials | 8.7 | |||
Health Care | 12.9 | |||
Industrials | 19.5 | |||
Information Technology | 11.2 | |||
Materials | 12.1 | |||
Utilities | 3.2 | |||
Other | 0.9 | |||
Short-Term Investments | 4.8 | |||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS | |||||||||||||||||||
Average Annual Total Return Ended 08/31/2012 | |||||||||||||||||||
Inception Date | 1 Year | 5 Years | 10 Years | Life of Fund | |||||||||||||||
Investor Class | 09/27/1988 | 6.31 | % | 4.11 | % | 10.41 | % | 12.14 | % | ||||||||||
Trust Class3 | 08/26/1993 | 6.21 | % | 4.06 | % | 10.36 | % | 12.14 | % | ||||||||||
Advisor Class4 | 04/02/1997 | 5.91 | % | 3.78 | % | 10.08 | % | 11.93 | % | ||||||||||
Institutional Class5 | 07/01/1999 | 6.51 | % | 4.34 | % | 10.64 | % | 12.29 | % | ||||||||||
Index | |||||||||||||||||||
Russell 2000® Index1,16 | 13.40 | % | 1.90 | % | 9.00 | % | 8.97 | % |
The performance data quoted represent past performance and do not indicate future results. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Management LLC ("Management") had not reimbursed certain expenses and/or waived a portion of the investment management fees during certain of the periods shown. Repayment by a class (of expenses previously reimbursed and/or fees previously waived by Management) will decrease the class's returns. Please see Note B in the Notes to Financial Statements for specific information regarding expense reimbursement and/or fee waiver arrangements.
As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2011 were 1.06%, 1.14%, 1.41% and 0.89% for Investor Class, Trust Class, Advisor Class and Institutional Class shares, respectively (before expense reimbursements and/or fee waivers, if any). The expense ratio was 0.88% for Institutional Class shares after expense reimbursements and/or fee waivers.
16
Genesis 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 class expenses (see Performance Highlights chart on previous page). The result is compared with benchmarks, which include a broad-based market index and may include a more narrowly based index. Market indices have not been reduced to reflect any of the fees and costs of investing. The results shown in the graph reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
17
Global Equity Fund Commentary (Unaudited)
Neuberger Berman Global Equity Fund Institutional Class generated a 2.82% total return for the fiscal year ended August 31, 2012, trailing its benchmark, the MSCI World Index, which generated a total return of 8.77%. (Performance for all share classes is provided in the table immediately following this letter.)
The overall global equity market direction was uncertain during the past 12 months, vacillating between extreme fears and relief on headline-grabbing macroeconomic news. The key factor globally again this year was European sovereign debt issues, which colored the year, weighing down domestic Europe and its global trade partners in the U.S. and emerging markets. The MSCI EAFE® Index of developed international markets, including Europe, closed practically flat, masking a very turbulent year. Growth in several key emerging economies slowed—most importantly, China, but also Brazil. This and investor risk aversion sent the MSCI Emerging Markets Index down more than –5%. Meanwhile, the U.S. was the clear winner, with the S&P 500 closing up 18% for the period; corporate profits remained strong in spite of a weak economy, and U.S. large-cap stocks benefited from a global "flight to safety" within equities.
Within our index, Greece was by far the weakest economy, followed by other southern eurozone countries. Denmark and Belgium, buoyed by locally domiciled multinationals, each surpassed the returns of the U.S. By market sector, Information Technology (IT), Health Care and Consumer Staples outperformed, while Materials, Utilities and Energy lagged. The portfolio saw its strongest performance by country from investments in Japan and Belgium, and by avoiding the weakness in Spain. Our U.S. and Canadian holdings underperformed their peers. By sector, strong stock selection within Telecommunication Services, Consumer Staples and Industrials was additive. Weaker sectors included Materials, due to an overweight, and Consumer Discretionary and Health Care.
Our top three contributors for the period were well known U.S.-based names—Apple, Wal-Mart and Comcast. Apple had a phenomenal year on the strength of the iPhone and iPad product cycle. Wal-Mart, the U.S. discount retailer that is expanding globally, continues to have relatively strong U.S. store sales increases. Comcast, the cable operator, continues to improve its customer revenue and maintain margins as it adds greater breadth of media-related services.
Detractors included French telecom equipment firm Alcatel-Lucent, which cut its profit forecast on slowing orders and was sold. Hyundai Mobis, the Korean auto parts manufacturer, also detracted, declining on concerns about margins. Goldcorp, a Canadian-based mining firm, had disappointing short-term production.
Currently, policy and macroeconomic uncertainty dominate both in Europe and the U.S., with the global equity markets responding in kind. In our opinion, growth in emerging markets looks set to slow as well. While eurozone banking and economic policy debates continue, and the public's frustration with austerity measures increases, business and consumer demand continues to weaken.
The Chinese economy has continued to slow—especially in the industrial sector, where August 2012 manufacturing activity grew the least in more than three years. The Chinese government lowered the reserve ratios for banks in order to stimulate lending, and is offering incentives for consumer spending.
The U.S. had a period of optimism in early 2012 when job growth accelerated, consumer and business confidence were strong, and low natural gas prices enhanced North America's competitive position. The outlook became less clear recently. While manufacturing activity weakened, some observers point to a possible bottoming of housing prices and the Federal Reserve's easing of monetary conditions as signs that the world's largest economy can maintain its low growth trajectory. Still, the contentious political environment threatens a "fiscal cliff" at year-end, with higher taxes and automatic cuts in government spending that could have a cumulative impact of 4% of GDP, if enacted.
Given this challenging outlook, the Fund remains defensively positioned. Even with the lack of clarity in the U.S. outlook, we currently believe the market still offers well-positioned domestically oriented names including Industrials, IT and Health Care companies with clear competitive advantages. Our non-U.S. holdings continue to be multinational companies with geographically diverse revenues.
18
The Industrials and IT sectors are among our largest overweights. In the former, we seek quality companies that are less cyclical, as we note industrial production is slowing down globally. In the latter, our focus is on growth areas such as smart-phone manufacturers and business software. Despite our Energy holdings' relative underperformance this period, we continue to favor upstream exploration companies and their service providers, as we believe oil is becoming harder to find and more expensive to extract. We remain underweighted in Financials, with no bank holdings in the eurozone or Japan.
While markets continue to process the global economic uncertainty, we continue to employ our fundamentally driven Quality at a Reasonable Price discipline and robust portfolio risk management, believing this could provide strong risk-adjusted returns over the long-term.
Sincerely,
Benjamin Segal And Saurin Shah
Portfolio Co-Managers
Information about the principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The composition, industries and holdings of the Fund are subject to change.
19
Global Equity Fund (Unaudited)
TICKER SYMBOLS | |||
Institutional Class | NGQIX | ||
Class A | NGQAX | ||
Class C | NGQCX |
SECTOR ALLOCATION | |||||
(as a % of Total Investments) | |||||
Consumer Discretionary | 11.5 | % | |||
Consumer Staples | 8.6 | ||||
Energy | 9.0 | ||||
Financials | 11.0 | ||||
Health Care | 13.3 | ||||
Industrials | 14.7 | ||||
Information Technology | 16.3 | ||||
Materials | 9.5 | ||||
Telecommunication Services | 3.5 | ||||
Short-Term Investments | 2.6 | ||||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS9 | |||||||||||
Average Annual Total Return Ended 08/31/2012 | |||||||||||
Inception Date | 1 Year | Life of Fund | |||||||||
At NAV | |||||||||||
Institutional Class | 06/30/2011 | 2.82 | % | –5.50 | % | ||||||
Class A | 06/30/2011 | 2.51 | % | –5.83 | % | ||||||
Class C | 06/30/2011 | 1.77 | % | –6.50 | % | ||||||
With Sales Charge | |||||||||||
Class A | –3.34 | % | –10.46 | % | |||||||
Class C | 0.84 | % | –6.50 | % | |||||||
Index | |||||||||||
MSCI World Index1,16 | 8.77 | % | 0.55 | % |
The performance data quoted represent past performance and do not indicate future results. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Management LLC ("Management") had not reimbursed certain expenses and/or waived a portion of the investment management fees during certain of the periods shown. Repayment by a class (of expenses previously reimbursed and/or fees previously waived by Management) will decrease the class's returns. Please see Note B in the Notes to Financial Statements for specific information regarding expense reimbursement and/or fee waiver arrangements.
As stated in the Fund's most recent prospectus, the estimated total annual operating expense ratios for fiscal year 2011 were 1.41%, 1.77%, and 2.52% for Institutional Class, Class A and Class C shares, respectively (before expense reimbursements and/or fee waivers, if any). These estimated expense ratios were 1.15%, 1.51% and 2.26% for Institutional Class, Class A and Class C shares, respectively, after expense reimbursements and/or fee waivers.
Returns shown with a sales charge reflect the deduction of the current maximum initial sales charge of 5.75% for Class A shares and the applicable contingent deferred sales charges (CDSC) for Class C shares. The maximum CDSC for Class C shares is 1%, which is reduced to 0% after 1 year. The performance of the Fund's share classes will differ primarily due to different sales charge structures and class expenses. Please see the prospectus for more information about sales charge structures, if any, and class expenses for your share class.
20
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. The results shown in the graph reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
21
Global Thematic Opportunities Fund Commentary (Unaudited)
Neuberger Berman Global Thematic Opportunities Fund Institutional Class generated a –7.22% total return for the fiscal year ended August 31, 2012. The Fund trailed its benchmark, the MSCI All Country World Index, which provided a 6.82% total return. (Performance for all share classes is provided in the table immediately following this letter.)
With the exception of the first quarter of 2012, global equity markets were anxious and volatile during much of the past fiscal year, dominated by "risk-off" sentiment. Fears were stoked by a perceived slowdown in economic growth worldwide—especially in Europe, where the ongoing sovereign debt crisis had investors questioning the health of European banks and worrying about a potential collapse. European concerns even reached China, Europe's largest trading partner, where an engineered slowdown was already constraining growth. At the same time, data in the U.S. was weak, suggesting the economy would continue limping along. Still, the U.S. market—and particularly U.S. mega cap stocks benefiting from investor risk aversion—was the clear frontrunner this period. Developed international markets were flat on European weakness, and emerging markets closed negative on export concerns and global risk aversion.
During this period, the Fund underperformed relative to the benchmark for several reasons. As unconstrained, high conviction investors, we seek the most attractive long-term opportunities that fit our global structural themes. As such, the portfolio's emerging markets allocation is more than double that of the index, and our non-U.S. portion is larger as well. Additionally, based on our judgment about superior relative opportunity, most of the portfolio is invested in small- and mid-cap stocks. This market was led by mega caps, a segment we typically underweight.
In terms of the global structural themes represented in the Fund, we saw mixed results in this market. The largest detriment this period was our "inflation" theme, a longer-term position designed to hedge against weakness in the U.S. dollar. This period, precious metals names such as gold producer Agnico-Eagle and a Junior Gold Miners ETF underperformed and were sold. In the short run, this theme disappointed as this period's flight to quality favored the U.S. dollar and U.S. mega-cap names over precious metals. As long-term investors, however, we believe the space is attractively valued.
The slowdown in Chinese economic growth put a crimp in commodity related sectors during the year, impacting our Energy and Materials investments. As such, our "global energy arbitrage" theme underperformed. Within this theme, incorporating part of our retired "long what china's short" theme, coal names including Alpha Natural Resources, which was sold, and Mongolian Mining were detractors. Halliburton also detracted, declining with oil prices.
Our largest weighting was our "emerging markets consumer" theme. Although Consumer Discretionary names are often shunned during a flight to quality, this theme contained some of our biggest winners. Ace Hardware Indonesia, a home improvement store serving the world's fourth most populous nation—one with a 5% GDP growth rate and low unemployment—was our top contributor. Philip Morris International also enjoyed steady growth despite the slowdown in China. Their products sell well in Russia, and sales were up by a third in Japan after the tsunami. Australian premium wines distributor, Treasury Wine Estates, also outperformed on exports to emerging markets.
The theme also had disappointments. Taiwanese cell phone company HTC declined on disappointing earnings guidance due to patent disputes and the economic slowdown. We eliminated this position from the portfolio. Lonrho, an exporter of fresh fruit to Europe, also declined, as did Chinese luxury auto company Dah Chong Hong, although we believe there is attractive upside for this auto dealer/distributor.
Our "agriculture" theme, the second largest within the portfolio, performed well. Valmont, an American irrigation technology specialist, was a standout and outperformed despite the severe U.S. drought.
Being underweight in Information Technology hurt us from a sector standpoint while an underweight in Financials helped results. Financials fall within our "money in motion" theme and among them, Invesco and BlackRock were among our top performers. Within our "man versus machine" theme, Google (owner of YouTube and Android) was also a strong contributor. Selected Industrials names were also positive, including Honeywell, part of our "up, up and away" aerospace and travel theme. This theme highlights air travel demand from emerging market populations with growing GDP per capita.
22
Though we are cautious about where we are in the economic cycle and recognize that all of the past year's uncertainties still exist—with the addition of the upcoming U.S. elections and a transition of power in China—the team is optimistic. As we scour the world to find profitable companies with strong balance sheets and good managements that can benefit from the long-term structural trends we've identified, we are finding what we believe are good valuations and companies with sound and growing free cash flows despite global economic hiccups. Believing cash-flow growth is key to this difficult environment, we are focusing the portfolio on the market leaders we believe will be resilient and profitable within the thematic areas we've identified. As experienced investors, we believe an opportunistic, disciplined, and patient approach can be rewarded over time.
Sincerely,
Anthony Gleason, Sandy Pomeroy, William Hunter and Richard Levine
Portfolio Co-Managers
Information about the principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The composition, industries and holdings of the Fund are subject to change.
23
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 | 14.9 | % | ||
Consumer Staples | 8.5 | |||
Energy | 9.4 | |||
Financials | 9.0 | |||
Health Care | 4.0 | |||
Industrials | 19.2 | |||
Information Technology | 10.9 | |||
Materials | 10.3 | |||
Telecommunication Services | 1.8 | |||
Utilities | 1.5 | |||
Other | 2.1 | |||
Short-Term Investments | 8.4 | |||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS | ||||||||||
Average Annual Total Return Ended 08/31/2012 | ||||||||||
Inception Date | 1 Year | Life of Fund | ||||||||
At NAV | ||||||||||
Institutional Class | 06/30/2011 | –7.22 | % | –10.67 | % | |||||
Class A | 06/30/2011 | –7.68 | % | –11.05 | % | |||||
Class C | 06/30/2011 | –8.25 | % | –11.67 | % | |||||
With Sales Charge | ||||||||||
Class A | –13.03 | % | –15.42 | % | ||||||
Class C | –9.17 | % | –11.67 | % | ||||||
Index | ||||||||||
MSCI All Country World Index1,16 | 6.82 | % | –1.07 | % |
The performance data quoted represent past performance and do not indicate future results. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Management LLC ("Management") had not reimbursed certain expenses and/or waived a portion of the investment management fees during certain of the periods shown. Repayment by a class (of expenses previously reimbursed and/or fees previously waived by Management) will decrease the class's returns. Please see Note B in the Notes to Financial Statements for specific information regarding expense reimbursement and/or fee waiver arrangements.
As stated in the Fund's most recent prospectus, the estimated total annual operating expense ratios for fiscal year 2011 were 1.56%, 1.92% and 2.67% for Institutional Class, Class A and Class C shares, respectively (before expense reimbursements and/or fee waivers, if any). These estimated expense ratios were 1.25%, 1.61% and 2.36% for Institutional Class, Class A and Class C shares, respectively, after expense reimbursements and /or fee waivers.
Returns shown with a sales charge reflect the deduction of the current maximum initial sales charge of 5.75% for Class A shares and the applicable contingent deferred sales charges (CDSC) for Class C shares. The maximum CDSC for Class C shares is 1%, which is reduced to 0% after 1 year. The performance of the Fund's share classes will differ primarily due to different sales charge structures and class expenses. Please see the prospectus for more information about sales charge structures, if any, and class expenses for your share class.
24
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. The results shown in the graph reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
25
Guardian Fund Commentary (Unaudited)
Neuberger Berman Guardian Fund Investor Class generated a 9.84% total return for the fiscal year ended August 31, 2012, trailing the benchmark S&P 500 Index, which reported an 18.00% total return. (Performance for all share classes is provided in the table immediately following this letter.)
Since the global financial crisis, our portfolio has been positioned in high-quality companies that we believe are poised to grow in a slow growth world and that can navigate risks presented by the global debt problem, such as the "fat-tail risks" of recession-induced deflation or policy-induced inflation. While these types of risk are always present, we believe the macroeconomic challenges associated with the debt problem increase their probability relative to past economic cycles.
Despite the market's overall strong returns, the last 12 months have been challenging for many bottom-up, long-term investors. During this time, global macroeconomic news often overshadowed company fundamentals and earnings. Sentiment and stock prices moved rapidly between extremes, first pressured by debt-related economic concerns, then later stimulated by subsequent government and monetary policy actions.
With investor attention narrowly focused on macroeconomic news, quality attributes did not support individual stock returns as they have during previous periods of uncertainty. For example, for much of the reporting period, high-yielding stocks performed well as investors sought the perceived safety of dividends. Many of the highest yielding stocks do not meet our quality standards, as their businesses do not generate free cash flow from operations to fund dividend payments—a quality characteristic we demand during this uncertain time. Furthermore, we consider many of the highest yielding sectors to be statistically expensive, posing a potential valuation risk.
Considering these factors, we avoided some of the highest dividend-paying stocks and sectors. This decision impeded relative performance. While the companies in our portfolio have the financial capacity to pay competitive dividends, many choose to reinvest their excess cash flow from operations back into their businesses for growth, or into repurchasing shares. Over the long run, we believe such actions may accrue to our benefit as shareholders. In the short-to-intermediate term, the financial strength of our companies could help to protect us from "fat-tail risks" unique to this cycle.
From a sector perspective, the portfolio's underperformance was largely driven by our Energy holdings, and isolated situations within Health Care and Information Technology (IT). As macro concerns ebbed and flowed, so did commodity and commodity-sensitive stock prices, which held back the performance of Energy shares. Additionally, a warm winter pressured domestic natural gas prices, hurting domestic producers' stocks. We remain constructive on energy market fundamentals, and believe our Energy holdings are attractively valued, financially strong, and well positioned for growth.
In Health Care, Hospira, which has been sold, declined after announcing that resolution of ongoing FDA compliance and manufacturing issues would take longer than expected. Within IT, the significant outperformance of Apple shares (up approximately 75% this period) had a disproportionate influence on the IT sector and benchmark returns. Not owning Apple was a meaningful headwind, as we clearly underestimated the strength of the iPhone product cycle.
Despite challenges, there were several significant positives during the reporting period. For example, Consumer Discretionary stocks Scripps Networks and Comcast, and McCormick & Co. in Consumer Staples, were among our top contributors.
We tactically reduced holdings on strong performance as valuations expanded, while adding to or establishing new positions on volatility-driven weakness. For example, we initiated a position in Marathon Petroleum, one of the largest, and, in our opinion, best-run North American refinery operations. We believe Marathon should benefit from new oil and gas resources currently coming on line in the U.S. and Canada.
Looking ahead, uncertainty persists, from Europe to China to the upcoming U.S. "fiscal cliff." However, we also see positive signs. Housing appears to have bottomed in the U.S., which could change what was a drag on GDP growth to a neutral-to-positive factor. We also believe the current North American energy renaissance is a strong positive for many domestic industries and Energy-related companies, and evidence from back-to-school sales shows that U.S. consumer
26
spending is firm. On the whole, we currently believe U.S. businesses remain solidly profitable and financially strong while equity valuations are attractive.
As fellow shareholders, we remain confident that our portfolio companies are well positioned for this uncertain time. Our quality standards remain high, as does our commitment to owning businesses we believe can deliver favorable secular growth. While the past 12 months have been challenging, on the whole it was a period where the businesses of our portfolio companies did better than their stock prices would suggest. If history is any guide, the market share gains and earnings growth of portfolio companies should, over time, drive relative performance gains for the Fund.
Sincerely,
Arthur Moretti
Portfolio Manager
Information about the principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The composition, industries and holdings of the Fund are subject to change.
27
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 | 9.4 | % | ||
Consumer Staples | 13.2 | |||
Energy | 16.1 | |||
Financials | 15.1 | |||
Health Care | 9.4 | |||
Industrials | 13.4 | |||
Information Technology | 17.8 | |||
Materials | 3.8 | |||
Short-Term Investments | 1.8 | |||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS7,12 | |||||||||||||||||||
Average Annual Total Return Ended 08/31/2012 | |||||||||||||||||||
Inception Date | 1 Year | 5 Years | 10 Years | Life of Fund | |||||||||||||||
At NAV | |||||||||||||||||||
Investor Class | 06/01/1950 | 9.84 | % | 1.05 | % | 7.10 | % | 10.91 | % | ||||||||||
Trust Class3 | 08/03/1993 | 9.68 | % | 0.88 | % | 6.93 | % | 10.87 | % | ||||||||||
Advisor Class4 | 09/03/1996 | 9.27 | % | 0.47 | % | 6.50 | % | 10.74 | % | ||||||||||
Institutional Class5 | 05/27/2009 | 10.03 | % | 1.17 | % | 7.16 | % | 10.92 | % | ||||||||||
Class A20 | 05/27/2009 | 9.63 | % | 0.92 | % | 7.03 | % | 10.89 | % | ||||||||||
Class C20 | 05/27/2009 | 8.83 | % | 0.44 | % | 6.77 | % | 10.85 | % | ||||||||||
Class R317 | 05/27/2009 | 9.40 | % | 0.78 | % | 6.95 | % | 10.88 | % | ||||||||||
With Sales Charge | |||||||||||||||||||
Class A20 | 3.31 | % | –0.27 | % | 6.40 | % | 10.79 | % | |||||||||||
Class C20 | 7.83 | % | 0.44 | % | 6.77 | % | 10.85 | % | |||||||||||
Index | |||||||||||||||||||
S&P 500 Index1,16 | 18.00 | % | 1.28 | % | 6.51 | % | 10.88 | % |
The performance data quoted represent past performance and do not indicate future results. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Management LLC ("Management") had not reimbursed certain expenses and/or waived a portion of the investment management fees during certain of the periods shown. Repayment by a class (of expenses previously reimbursed and/or fees previously waived by Management) will decrease the class's returns. Please see Note B in the Notes to Financial Statements for specific information regarding expense reimbursement and/or fee waiver arrangements.
As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2011 were 0.92%, 1.10%, 1.50%, 0.75%, 1.15%, 1.90% and 1.44% for Investor Class, Trust Class, Advisor Class, Institutional Class, Class A, Class C and Class R3 shares, respectively (before expense reimbursements and/or fee waivers, if any). These expense ratios were 1.11%, 1.86% and 1.36% for Class A, Class C and Class R3 shares, respectively, after expense reimbursements and /or fee waivers. The total annual operating expense ratio for the Advisor Class includes the class's repayment of expenses previously reimbursed and/or fees previously waived by Management.
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.
28
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. The results shown in the graph reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
29
International Fund Commentary (Unaudited)
Neuberger Berman International Fund Investor Class generated a 0.26% total return for the fiscal year ended August 31, 2012, trailing its benchmark, the MSCI EAFE® Index, which provided a 0.47% total return. (Performance for all share classes is provided in the table immediately following this letter.)
International markets, as measured by the MSCI EAFE Index, closed the reporting period essentially flat, masking tremendous uncertainty driven by ongoing concerns about European sovereign debt issues. In fall 2011, markets fell as worries reached extremes. By mid-December, markets began to rebound as the European Central Bank (ECB) introduced a plan to provide liquidity to eurozone banks via long-term refinancing operations (LTROs). However, markets dove in April and May 2012 on renewed concerns about Europe plus slower economic growth in the U.S. and China. Since June, the markets as represented by the MSCI EAFE Index bounced back somewhat anticipating more supportive central bank policies from the U.S. Federal Reserve and ECB, netting roughly zero for the year.
Returns by country varied this period, from Greece, the weakest at –48%, followed by other southern eurozone countries, to top performers Denmark, Belgium and Ireland, which were mainly driven by locally domiciled multinationals. By industry, defensive Consumer Staples and Health Care sectors led, followed by Energy. Laggards included Materials and Information Technology, both reporting sharply negative results. The former was impacted by the Chinese industrial slowdown, which has negatively impacted industrial metals and mining firms.
The portfolio's defensive positioning helped us navigate the period's uncertain markets—although it caused some lag during the intermittent rallies. Stock selection was also generally additive. By sector, holdings in Industrials and Health Care helped relative performance. Financials and Energy sector holdings underperformed. Within Financials, we did not hold any eurozone banks or insurers during the period, so the portfolio trailed when these sub-sectors outperformed during the period's short rallies.
By country, investments in Japan and a near-zero allocation to Spain were relative positives for the portfolio for most of the period. Detriments included Canadian holdings, where Materials names underperformed, and individual holdings in France.
CSL, an Australian-domiciled blood plasma products firm that has continued to gain market share with its leading products, was our top contributor. Vodafone, the global mobile telecom company, also outperformed, raising forecasts after 2011 results surpassed expectations. Bunzl, the UK-based distributor of non-food consumable items, has continued to deliver solid organic growth and announced plans to expand its geographic footprint.
Our most significant disappointments included Alcatel-Lucent, Chemring and HRT Participacões. Alcatel, the French telecom equipment supplier, cut its profit forecast on slowing orders. Chemring, a U.K.-based defense company, fell on uncertainty about U.S. defense spending. HRT, a Brazilian energy company, saw exploration disappointments. Chemring and HRT were sold.
Currently, policy and macroeconomic uncertainty dominate both in Europe and the U.S., with the global equity markets responding in kind. While eurozone banking and economic policy debates continue, and the public's frustration with austerity measures increases, business and consumer demand continues to weaken.
Growth in emerging markets may slow as well. This is best exemplified by the Chinese economic slowdown—especially in the industrial sectors, where August 2012 manufacturing activity grew the least in more than three years. The Chinese government lowered the reserve ratios for banks in order to stimulate lending, and is offering incentives for consumer spending.
The U.S. had a period of optimism in early 2012 when job growth accelerated, consumer and business confidence were strong, and low natural gas prices enhanced North America's competitive position. The outlook became less clear recently. While manufacturing activity weakened, some observers point to a possible bottoming of housing prices and the Federal Reserve's easing of monetary conditions as signs that the world's largest economy can maintain its low growth trajectory.
30
Still, the contentious political environment threatens a "fiscal cliff" at year-end, with potentially higher taxes and automatic cuts in government spending that could have a cumulative impact of 4% of GDP, if enacted.
Given this challenging outlook, the Fund remains defensively positioned. In Europe, we currently favor countries outside the eurozone area that we believe have superior prospects, such as Switzerland and the Nordic countries. We favor companies with a history of recurring revenues and significant operations in North America and emerging markets, and continue to look for European multinationals that are starting to reach what we believe are very attractive valuations.
By sector, our largest overweight remains in Materials, focused both on specialty chemical companies that we believe have pricing power and relatively stable end markets, and precious metals. Despite recent underperformance in Energy, we continue to favor upstream exploration companies and service providers, as oil is becoming harder to find and more expensive to extract. With regulatory and other risks, we remain underweighted in Financials, with no bank holdings in the eurozone or Japan.
While markets continue to process the global economic uncertainty, we continue to employ our fundamentally driven Quality at a Reasonable Price discipline and robust portfolio risk management, believing this can provide strong risk-adjusted returns over the long term.
Sincerely,
Benjamin Segal
Portfolio Manager
Information about the principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The composition, industries and holdings of the Fund are subject to change.
31
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 | 13.2 | % | |||
Consumer Staples | 11.4 | ||||
Energy | 8.1 | ||||
Financials | 13.4 | ||||
Health Care | 10.4 | ||||
Industrials | 15.1 | ||||
Information Technology | 6.1 | ||||
Materials | 13.3 | ||||
Telecommunication Services | 5.6 | ||||
Short-Term Investments | 3.4 | ||||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS7,13 | |||||||||||||||||||
Average Annual Total Return Ended 08/31/2012 | |||||||||||||||||||
Inception Date | 1 Year | 5 Years | 10 Years | Life of Fund | |||||||||||||||
At NAV | |||||||||||||||||||
Investor Class | 06/15/1994 | 0.26 | % | –3.60 | % | 9.04 | % | 6.97 | % | ||||||||||
Trust Class3 | 06/29/1998 | 0.15 | % | –3.73 | % | 9.03 | % | 7.13 | % | ||||||||||
Class A20 | 12/20/2010 | 0.17 | % | –3.62 | % | 9.03 | % | 6.96 | % | ||||||||||
Class C20 | 12/20/2010 | –0.60 | % | –3.87 | % | 8.89 | % | 6.88 | % | ||||||||||
With Sales Charge | |||||||||||||||||||
Class A20 | –5.60 | % | –4.75 | % | 8.38 | % | 6.61 | % | |||||||||||
Class C20 | –1.59 | % | –3.87 | % | 8.89 | % | 6.88 | % | |||||||||||
Index | |||||||||||||||||||
MSCI EAFE® Index1,16 | 0.47 | % | –4.34 | % | 7.15 | % | 4.52 | % |
The performance data quoted represent past performance and do not indicate future results. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Management LLC ("Management") had not reimbursed certain expenses and/or waived a portion of the investment management fees during certain of the periods shown. Repayment by a class (of expenses previously reimbursed and/or fees previously waived by Management) will decrease the class's returns. Please see Note B in the Notes to Financial Statements for specific information regarding expense reimbursement and/or fee waiver arrangements.
As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2011 were 1.61%, 1.70%, 3.01% and 8.21% for Investor Class, Trust Class, Class A and Class C shares, respectively (before expense reimbursements and/or fee waivers, if any).These expense ratios were 1.45%, 1.69% and 2.32% for Investor Class, Class A and Class C shares, respectively, after expense reimbursements and/or fee waivers.
Returns shown with a sales charge reflect the deduction of the current maximum initial sales charge of 5.75% for Class A shares and the applicable contingent deferred sales charges (CDSC) for Class C shares. The maximum CDSC for Class C shares is 1%, which is reduced to 0% after 1 year. The performance of the Fund's share classes will differ primarily due to different sales charge structures and class expenses. Please see the prospectus for more information about sales charge structures, if any, and class expenses for your share class.
32
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. The results shown in the graph reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
33
International Institutional Fund Commentary (Unaudited)
Neuberger Berman International Institutional Fund generated a 0.78% total return for the fiscal year ended August 31, 2012, outperforming its benchmark, the MSCI EAFE® Index, which provided a 0.47% total return.
International markets, as measured by the MSCI EAFE Index, closed the reporting period essentially flat, masking tremendous uncertainty driven by ongoing concerns about European sovereign debt issues. In fall 2011, markets fell as worries reached extremes. By mid-December, markets began to rebound as the European Central Bank (ECB) introduced a plan to provide liquidity to eurozone banks via long-term refinancing operations (LTROs). However, markets dove in April and May 2012 on renewed concerns about Europe plus slower economic growth in the U.S. and China. Since June, the markets as represented by the MSCI EAFE Index bounced back somewhat, anticipating more supportive central bank policies from the U.S. Federal Reserve and ECB, netting roughly zero for the year.
Returns by country varied this period, from Greece, the weakest at –48%, followed by other southern eurozone countries, to top performers Denmark, Belgium and Ireland, which were mainly driven by locally domiciled multinationals. By industry, defensive Consumer Staples and Health Care sectors led, followed by Energy. Laggards included Materials and Information Technology, both reporting sharply negative results. The former was impacted by the Chinese industrial slowdown, which has negatively impacted industrial metals and mining firms.
The portfolio's defensive positioning helped us navigate the period's uncertain markets—although it caused some lag during the intermittent rallies. Stock selection was also generally additive. By sector, holdings in Industrials and Health Care helped relative performance. Financials and Energy sector holdings underperformed. Within Financials, we did not hold any eurozone banks or insurers during the period, so the portfolio trailed when these sub-sectors outperformed during the period's short rallies.
By country, investments in Japan and a near-zero allocation to Spain were relative positives for the portfolio for most of the period. Detriments included Canadian holdings, where Materials names underperformed, and individual holdings in France.
CSL, an Australian-domiciled blood plasma products firm that has continued to gain market share with its leading products, was our top contributor. Vodafone, the global mobile telecom company, also outperformed, raising forecasts after 2011 results surpassed expectations. Bunzl, the UK-based distributor of non-food consumable items, has continued to deliver solid organic growth and announced plans to expand its geographic footprint.
Our most significant disappointments included Alcatel-Lucent, Chemring and HRT Participacões. Alcatel, the French telecom equipment supplier, cut its profit forecast on slowing orders. Chemring, a U.K.-based defense company, fell on uncertainty about U.S. defense spending. HRT, a Brazilian energy company, saw exploration disappointments. Chemring and HRT were sold.
Currently, policy and macroeconomic uncertainty dominate both in Europe and the U.S., with the global equity markets responding in kind. While eurozone banking and economic policy debates continue, and the public's frustration with austerity measures increases, business and consumer demand continues to weaken.
Growth in emerging markets may slow as well. This is best exemplified by the Chinese economic slowdown—especially in the industrial sectors, where August 2012 manufacturing activity grew the least in more than three years. The Chinese government lowered the reserve ratios for banks in order to stimulate lending, and is offering incentives for consumer spending.
The U.S. had a period of optimism in early 2012 when job growth accelerated, consumer and business confidence were strong, and low natural gas prices enhanced North America's competitive position. The outlook became less clear recently. While manufacturing activity weakened, some observers point to a possible bottoming of housing prices and the Federal Reserve's easing of monetary conditions as signs that the world's largest economy can maintain its low growth trajectory.
34
Still, the contentious political environment threatens a "fiscal cliff" at year-end, with potentially higher taxes and automatic cuts in government spending that could have a cumulative impact of 4% of GDP, if enacted.
Given this challenging outlook, the Fund remains defensively positioned. In Europe, we currently favor countries outside the eurozone area that we believe have superior prospects, such as Switzerland and the Nordic countries. We favor companies with a history of recurring revenues and significant operations in North America and emerging markets, and continue to look for European multinationals that are starting to reach what we believe are very attractive valuations.
By sector, our largest overweight remains in Materials, focused both on specialty chemical companies that we believe have pricing power and relatively stable end markets, and precious metals. Despite recent underperformance in Energy, we continue to favor upstream exploration companies and service providers, as oil is becoming harder to find and more expensive to extract. With regulatory and other risks, we remain underweighted in Financials, with no bank holdings in the eurozone or Japan.
While markets continue to process the global economic uncertainty, we continue to employ our fundamentally driven Quality at a Reasonable Price discipline and robust portfolio risk management, believing this can provide strong risk-adjusted returns over the long term.
Sincerely,
Benjamin Segal
Portfolio Manager
Information about the principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The composition, industries and holdings of the Fund are subject to change.
35
International Institutional Fund (Unaudited)
TICKER SYMBOLS | |||
Institutional Class | NBIIX |
SECTOR ALLOCATION | |||||
(as a % of Total Investments) | |||||
Consumer Discretionary | 13.4 | % | |||
Consumer Staples | 11.6 | ||||
Energy | 8.2 | ||||
Financials | 13.5 | ||||
Health Care | 10.5 | ||||
Industrials | 15.3 | ||||
Information Technology | 6.2 | ||||
Materials | 13.5 | ||||
Telecommunication Services | 5.7 | ||||
Short-Term Investments | 2.1 | ||||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS7 | ||||||||||||||||
Average Annual Total Return Ended 08/31/2012 | ||||||||||||||||
Inception Date | 1 Year | 5 Years | Life of Fund | |||||||||||||
Institutional Class | 06/17/2005 | 0.78 | % | –3.30 | % | 3.42 | % | |||||||||
Index | ||||||||||||||||
MSCI EAFE® Index1,16 | 0.47 | % | –4.34 | % | 3.30 | % |
The performance data quoted represent past performance and do not indicate future results. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Management LLC ("Management") had not reimbursed certain expenses and/or waived a portion of the investment management fees during certain of the periods shown. Repayment by a class (of expenses previously reimbursed and/or fees previously waived by Management) will decrease the class's returns. Please see Note B in the Notes to Financial Statements for specific information regarding expense reimbursement and/or fee waiver arrangements.
As stated in the Fund's most recent prospectus, the total annual operating expense ratio for fiscal year 2011 was 1.23% for Institutional Class shares (before expense reimbursements and/or fee waivers, if any). The expense ratio was 0.86% for Institutional Class shares after expense reimbursements and/or fee waivers.
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 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 reflect the reinvestment of income dividends and distributions, if any. 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. |
36
International Large Cap Fund Commentary (Unaudited)
Neuberger Berman International Large Cap Fund Trust Class generated a –1.05% total return for the fiscal year ended August 31, 2012, trailing its benchmark, the MSCI EAFE® Index, which provided a 0.47% total return. (Performance for all share classes is provided in the table immediately following this letter.)
International markets, as measured by the MSCI EAFE Index, closed the reporting period essentially flat, masking tremendous uncertainty driven by ongoing concerns about European sovereign debt issues. In fall 2011, markets fell as worries reached extremes. By mid-December, markets began to rebound as the European Central Bank (ECB) introduced a plan to provide liquidity to eurozone banks via long-term refinancing operations (LTROs). However, markets dove in April and May 2012 on renewed concerns about Europe plus slower economic growth in the U.S. and China. Since June, the markets as represented by the MSCI EAFE Index bounced back somewhat, anticipating more supportive central bank policies from the U.S. Federal Reserve and ECB, netting roughly zero for the year.
Returns by country varied this period, from Greece, the weakest at –48%, followed by other southern eurozone countries, to top performers Denmark, Belgium and Ireland, which were mainly driven by locally domiciled multinationals. By industry, the defensive Consumer Staples and Health Care sectors led, followed by Energy. Laggards included Materials and Information Technology, both reporting sharply negative results. The former was impacted by the Chinese Industrial slowdown, which has negatively impacted industrial metals and mining firms.
The portfolio's defensive positioning helped us navigate the period's uncertain markets—although it caused some lag during the intermittent rallies. Stock selection was also generally additive. By sector, holdings in Industrials, Health Care and Telecom helped relative performance. Energy, Financials and Consumer Discretionary sector allocations underperformed. In Financials, we did not hold any Japanese or eurozone banks or insurers during the period, so the portfolio trailed when these sub-sectors outperformed during the period's short rallies.
By country, investments in Japan, a zero allocation to Spain, and stock selection within the U.K. were relative positives. Detriments included Canadian holdings, where Materials names underperformed, individual holdings in France, and an opportunistic allocation to Brazil.
Experian, the UK-listed credit and marketing data provider, was our top contributor for the period, delivering solid results driven by healthy organic growth. CSL, an Australian-domiciled blood plasma products firm that continues to gain market share with its leading products, was another top contributor. Denmark's Novo Nordisk, a global leader in diabetes care, also outperformed.
Our most significant disappointments included Alcatel-Lucent, HRT Participacões, and Potash. Alcatel, the French telecom equipment supplier, cut its profit forecast on slowing orders. HRT, a Brazilian energy company, saw exploration disappointments. Potash, a Canadian fertilizer producer, fell on uncertain demand. HRT and Potash were sold.
Currently, policy and macroeconomic uncertainty dominate both in Europe and the U.S., with the global equity markets following suit. While eurozone banking and economic policy debates continue, and the public's frustration with austerity measures increases, business and consumer demand continues to weaken.
Growth in emerging markets may slow as well. This is best exemplified by the Chinese economic slowdown—especially in the industrial sectors, where August 2012 manufacturing activity grew the least in more than three years. The Chinese government lowered the reserve ratios for banks in order to stimulate lending, and is offering incentives for consumer spending.
The U.S. had a period of optimism in early 2012 when job growth accelerated, consumer and business confidence were strong, and low natural gas prices enhanced North America's competitive position. The outlook became less clear recently. While manufacturing activity weakened, some observers point to a possible bottoming of housing prices and the Federal Reserve's easing of monetary conditions as signs that the world's largest economy can maintain its low growth trajectory.
37
Still, the contentious political environment threatens a "fiscal cliff" at year-end, with potentially higher taxes and automatic cuts in government spending that could have a cumulative impact of 4% of GDP, if enacted.
Given this challenging outlook, the Fund remains defensively positioned. In Europe, we currently favor countries outside the euro area that we believe have superior prospects, such as Switzerland and the Nordic countries. We favor companies with a history of recurring revenues and significant operations in North America and emerging markets, and continue to look for European multinationals that are starting to reach what we believe are very attractive valuations.
By sector, our largest overweight remains in Materials, focused both on specialty chemical companies that we believe have pricing power and relatively stable end markets, and precious metals. We have added to niche Industrials holdings, seeing what we consider an area of growth primarily in emerging markets. Despite recent underperformance in Energy, we continue to favor upstream exploration companies and service providers, as oil is becoming harder to find and more expensive to extract. With regulatory and other risks, we remain underweighted in Financials, with no bank holdings in the eurozone or Japan.
While markets continue to process the global economic uncertainty, we continue to employ our fundamentally driven Quality at a Reasonable Price discipline and robust portfolio risk management, believing this can provide strong risk-adjusted returns over the long term.
Sincerely,
Benjamin Segal
Portfolio Manager
Information about the principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The composition, industries and holdings of the Fund are subject to change.
38
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 | 13.0 | % | |||
Consumer Staples | 9.6 | ||||
Energy | 8.6 | ||||
Financials | 14.1 | ||||
Health Care | 8.8 | ||||
Industrials | 14.8 | ||||
Information Technology | 7.4 | ||||
Materials | 14.4 | ||||
Telecommunication Services | 6.7 | ||||
Short-Term Investments | 2.6 | ||||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS7 |
Average Annual Total Return Ended 08/31/2012 | |||||||||||||||
Inception Date | 1 Year | 5 Years | Life of Fund | ||||||||||||
At NAV | |||||||||||||||
Trust Class | 08/01/2006 | –1.05 | % | –3.27 | % | 0.47 | % | ||||||||
Institutional Class6 | 10/06/2006 | –0.65 | % | –2.93 | % | 0.81 | % | ||||||||
Class A15 | 12/20/2007 | –0.96 | % | –3.26 | % | 0.48 | % | ||||||||
Class C15 | 12/20/2007 | –1.64 | % | –3.93 | % | –0.10 | % | ||||||||
Class R315 | 05/27/2009 | –1.24 | % | –3.45 | % | 0.32 | % | ||||||||
With Sales Charge | |||||||||||||||
Class A15 | –6.68 | % | –4.40 | % | –0.49 | % | |||||||||
Class C15 | –2.62 | % | –3.93 | % | –0.10 | % | |||||||||
Index | |||||||||||||||
MSCI EAFE® Index1,16 | 0.47 | % | –4.34 | % | –0.31 | % |
The performance data quoted represent past performance and do not indicate future results. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Management LLC ("Management") had not reimbursed certain expenses and/or waived a portion of the investment management fees during certain of the periods shown. Repayment by a class (of expenses previously reimbursed and/or fees previously waived by Management) will decrease the class's returns. Please see Note B in the Notes to Financial Statements for specific information regarding expense reimbursement and/or fee waiver arrangements.
As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2011 were 1.40%, 1.02%, 1.39%, 2.15% and 1.88% for Trust Class, Institutional Class, Class A, Class C and Class R3 shares, respectively (before expense reimbursements and/or fee waivers, if any). These expense ratios were 1.25%, 0.91%, 1.30%, 2.01% and 1.52% for Trust Class, Institutional Class, Class A, Class C and Class R3 shares, respectively, after expense reimbursements and/or fee waivers.
Returns shown with a sales charge reflect the deduction of the current maximum initial sales charge of 5.75% for Class A shares and the applicable contingent deferred sales charges (CDSC) for Class C shares. The maximum CDSC for Class C shares is 1%, which is reduced to 0% after 1 year. The performance of the Fund's share classes will differ primarily due to different sales charge structures and class expenses. Please see the prospectus for more information about sales charge structures, if any, and class expenses for your share class.
39
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. The results shown in the graph reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
40
Intrinsic Value Fund Commentary (Unaudited)
Neuberger Berman Intrinsic Value Fund Institutional Class posted a 12.21% total return for the fiscal year ending August 31, 2012, trailing its benchmark, the Russell 2000® Value Index which gained 14.08%. (Performance for all share classes is provided in the table immediately following this letter.)
Although the Fund experienced a strong recovery from the market lows of October 2011, between April and June the stock market experienced some turbulence like in 2010 and 2011. Initial enthusiasm about the European Central Bank's ability to respond to deteriorating sovereign bond markets gave way to concern about the health of Spain and its banks. As economic conditions in Europe worsened, many questions emerged about the health of China and other Asian economies. After a warm winter that may have helped businesses here at home, economic growth in the U.S. also began to moderate. With each part of the globe showing signs of weakness, economically sensitive assets like small-cap stocks sold off as investors sought refuge in fixed income assets.
As frustrating as the last three summer market declines have been for investors, we maintain an optimistic long-term view of several industries in the U.S. Domestic manufacturing is benefitting from a combination of positive trends. The U.S. auto industry has been restructured, which we believe ensures profitability at much lower levels of sales. The automotive industry touches one in eight manufacturing jobs so its health is of paramount importance. Bountiful discoveries of shale gas have reduced the cost of energy for many manufacturers, while at the same time driving healthy demand for products and services related to energy production. It has been estimated that the recent shale gas and oil drilling booms have added hundreds of thousands of jobs (directly and indirectly) to the economy over the last five years. Along with recoveries in the automotive and energy service sectors, the commercial aerospace industry has been experiencing a strong upturn in demand for civilian aircraft. Finally, and perhaps most important, is that after six years it seems that the long slide in residential real estate has, in many parts of the country, finally ended. This has important implications for regional lenders and mortgage processors. If credit quality improves throughout their loan portfolios, banks should be more inclined to engage in new lending. Improving real estate prices may also help the psychology of consumers who have watched a painful erosion in the value of their largest asset.
We believe the portfolio is well positioned to capture the economic benefits of these trends, in particular the improvement in real estate. Over 16% of the portfolio is invested in regional banks and mortgage processors. Two of our largest holdings, CoreLogic and Lender Processing Services, contributed to performance. These companies benefit each time a homeowner applies for a mortgage or refinancing. A year ago these stocks sold off dramatically, losing more than one-third of their value as investors feared they would become entangled in regulatory efforts to fine the mortgage industry for its role in the housing crisis. Now it seems to us that those concerns were overblown as both companies have put many of the regulatory matters behind them. Since last August, CoreLogic has doubled its low price while Lender Processing has also performed well. We mention these examples to remind investors that contrarian value investing is neither for the faint of heart nor for those with short-term horizons.
Every portfolio will have stocks that present challenges to performance, and this year we had our fair share of disappointments. We eliminated losing investments in MEMC Electronic Materials, Powerwave and Talbots, but for the time being continue to hold shares in RadioShack and OfficeMax. In the case of OfficeMax, we decided to encourage the company to pay a dividend, consider share repurchases, and sell non-core operations. At one point this summer OfficeMax had a market value of $375 million while maintaining over $230 million in cash, net of debt, and an investment in Boise Cascade that is on OfficeMax's books for $220 million. Some analysts have suggested that OfficeMax's investment in Boise, which provides lumber to the home building industry, could be worth upwards of $400 million. While investors were assigning a negative value to the office products business, which currently generates $200 million of cash flow annually, we believe that OfficeMax shares should trade well north of $10 or roughly a third higher than its recent price. For the moment it seems that the management has taken our concerns seriously, as evidenced by their recent decision to resume paying a modest dividend while at the same time reviewing their options for the Boise Cascade investment.
41
As encouraged as we may be about the prospects for individual companies and specific sectors of the economy, elections are upon us and much work remains for Congress. Unfortunately, the current class of elected officials appear to be waiting for the American people to tell them what direction to take, whether to scale back government spending or focus on raising taxes. Whatever the outcome, in the long run we will all be better off the faster Congress gets back to business and works to restore our fiscal health.
Sincerely,
Benjamin H. Nahum, James F. Mcaree and Amit Solomon
Portfolio Co-Managers
Information about the principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The composition, industries and holdings of the Fund are subject to change.
42
Intrinsic Value Fund (Unaudited)
TICKER SYMBOLS | |||
Institutional Class | NINLX | ||
Class A | NINAX | ||
Class C | NINCX |
SECTOR ALLOCATION | |||||
(as a % of Total Investments) | |||||
Consumer Discretionary | 6.6 | % | |||
Consumer Staples | 2.3 | ||||
Energy | 2.5 | ||||
Financial Services | 16.3 | ||||
Health Care | 7.3 | ||||
Materials & Processing | 6.3 | ||||
Producer Durables | 25.8 | ||||
Technology | 25.6 | ||||
Utilities | 2.7 | ||||
Short-Term Investments | 4.6 | ||||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS | |||||||||||||||||||
Average Annual Total Return Ended 08/31/2012 | |||||||||||||||||||
Inception Date | 1 Year | 5 Years | 10 Years | Life of Fund | |||||||||||||||
At NAV | |||||||||||||||||||
Institutional Class19 | 05/10/2010 | 12.21 | % | 2.24 | % | 11.60 | % | 10.50 | % | ||||||||||
Class A19 | 05/10/2010 | 11.62 | % | 2.05 | % | 11.50 | % | 10.43 | % | ||||||||||
Class C19 | 05/10/2010 | 10.87 | % | 1.72 | % | 11.31 | % | 10.31 | % | ||||||||||
With Sales Charge | |||||||||||||||||||
Class A19 | 5.23 | % | 0.85 | % | 10.84 | % | 10.00 | % | |||||||||||
Class C19 | 9.88 | % | 1.72 | % | 11.31 | % | 10.31 | % | |||||||||||
Index | |||||||||||||||||||
Russell 2000® Value Index1,16 | 14.08 | % | 0.73 | % | 8.49 | % | 7.60 | % | |||||||||||
Russell 2000® Index1,16 | 13.40 | % | 1.90 | % | 9.00 | % | 6.21 | % |
The inception date for Neuberger Berman Intrinsic Value Fund Institutional Class, Class A, and Class C 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 endnote 19 for information about the effects of the different fees paid by each class.
The performance data quoted represent past performance and do not indicate future results. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of all income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Management LLC ("Management") had not reimbursed certain expenses and/or waived a portion of the investment management fees during certain of the periods shown. Repayment by a class (of expenses previously reimbursed and/or fees previously waived by Management) will decrease the class's returns. Please see Note B in the Notes to Financial Statements for specific information regarding expense reimbursement and/or fee waiver arrangements.
As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2011 were 1.27%, 1.65% and 2.35% for Institutional Class, Class A and Class C shares, respectively (before expense reimbursements and/or fee waivers, if any). These expense ratios were 1.01%, 1.36% and 2.11% for Institutional Class, Class A and Class C shares, respectively, after expense reimbursements and/or fee waivers.
Returns shown with a sales charge reflect the deduction of the current maximum initial sales charge of 5.75% for Class A shares and the applicable contingent deferred sales charges (CDSC) for Class C shares. The maximum CDSC for Class C shares is 1%, which is reduced to 0% after 1 year. The performance of the Fund's share classes will differ primarily due to different sales charge structures and class expenses. Please see the prospectus for more information about sales charge structures, if any, and class expenses for your share class.
43
Intrinsic Value Fund (Unaudited)
COMPARISON OF A $1,000,000 INVESTMENT19 |
(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. The results shown in the graph reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
44
Large Cap Disciplined Growth Fund Commentary (Unaudited)
Neuberger Berman Large Cap Disciplined Growth Fund Investor Class generated 9.12% total return for the fiscal year ended August 31, 2012, trailing its benchmark, the Russell 1000® Growth Index, which generated a 17.37% total return. (Performance for all share classes is provided in the table immediately following this letter.)
The market closed the reporting period significantly higher than what might have been expected given the number of significant challenges facing the global economy. With a high level of correlation between stocks in a market driven by macroeconomic concerns rather than by individual company or stock factors, this was a difficult market that posed challenges for fundamentals-focused active managers. Central bank and sovereign policy matters—European debt, the U.S. "fiscal cliff" and tax and regulatory uncertainty in the U.S., and an economic slowdown in China from GDP growth of 10.5% in 2010 to roughly 7.5% in 2012—had the biggest impact on the markets, sending investors searching for yield rather than evaluating earnings.
In the fall of 2011, portfolio positioning was relatively defensive, with reduced exposure to economically sensitive sectors and a slightly below-market beta. Early in 2012, as the economy appeared to strengthen and as European Central Bank (ECB) policy removed some anxiety from the markets, we moved to a more market-neutral stance. We have since reverted to a somewhat more defensive positioning, closing the year with a lower beta than the market, and with overweights to Telecommunication Services and Health Care and underweights to Financials and Industrials, relative to the benchmark.
Defensive positioning put the portfolio at something of a disadvantage against the market. Stock selection within the Consumer Discretionary, Industrials and Health Care sectors was a relative detriment. On the consumer front, Netflix disappointed. Netflix increased pricing last year, which paused subscriber acquisition and lengthened their timeline to global profitability. While we made money on the stock for our entire holding period, it was a detractor during this fiscal year and was sold.
In Industrials, mining equipment maker Joy Global was a detractor. Its stock was impacted by the slowing Chinese economy, the key driver of the global commodities supercycle. We have not seen a reduction in Joy's orders backlog, however, and we currently believe they will be a longer-term beneficiary of a supply/demand imbalance favoring producers.
In Health Care, Illumina also detracted. The company had difficulties in the third and fourth quarters of 2011 on fears about the National Institutes of Health budget. In 2012, however, the stock has recovered nicely, as we anticipated it would after expectations were reset. Their consumables and gene sequencing businesses have been performing very well.
The portfolio outperformed the benchmark in the Telecommunication Services sector, and had favorable stock selection within Information Technology and Materials. Top contributors included tech firms Apple and Google, and Monsanto from within Materials.
Apple saw a very successful launch of the iPhone 4S last year, and instituted a dividend and buyback policy—both of which were very positive for the stock and broadened their investor base. We are anticipating positive impacts on profits from the launch of the iPhone 5 and a smaller iPad later in the year.
There had been some concern about Google's ability to monetize mobile and its YouTube platform. Both are now profitable, and fears that Google would lose market share to Bing did not materialize. Through Android, Google has continued to take share in the cell phone ecosystem. Phones running the Android platform worldwide feed Google's search business.
Monsanto, one of our bigger overweights relative to the benchmark, is the leader in genetically modified seeds. Monsanto launched a triple-stacked seed last year—drought and rootworm resistant and "roundup ready"—that has been very successful. We are waiting for results from this year's drought. If Monsanto's seeds showed better yield than non-modified or competitive modified seeds, we anticipate that this will be a benefit going forward.
45
Up over 17% for the year, the market rallied considerably in an environment where, in our opinion, most meaningful indicators have gotten worse—U.S. GDP is slowing, from about 4% in the initial stages of the recovery to below 2% for the second half of 2012, unemployment is still high at 8.1% as of the end of August, industrial production has declined, earnings growth has slowed for most companies, Europe is heading toward a possible recession, and China has slowed significantly. Until the economy improves, we believe policy at the Federal Reserve, the ECB and in China is what will drive the market. This has required us to perform a bit of a balancing act—between wanting to be defensive, and the knowledge that policy moves, such as the recent QE3 announcement, may trigger rallies.
Our primary focus continues to be the bottom-up search for the best ideas we believe will lead to longer-term outperformance, but our goal in the near term is to be more defensive than the market—with lower beta and economic sensitivity, a larger cap size, more defensive businesses and sectors, and a focus on companies with higher earnings.
Sincerely,
Daniel S. Rosenblatt and John J. Barker
Portfolio Co-Managers
Information about the principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The composition, industries and holdings of the Fund are subject to change.
46
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 | 15.7 | % | |
Consumer Staples | 12.6 | ||
Energy | 5.9 | ||
Financials | 1.0 | ||
Health Care | 12.1 | ||
Industrials | 9.0 | ||
Information Technology | 30.4 | ||
Materials | 4.2 | ||
Telecommunication Services | 6.1 | ||
Short-Term Investments | 3.0 | ||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS11 | ||||||||||||||||||
Average Annual Total Return Ended 08/31/2012 | ||||||||||||||||||
Inception Date | 1 Year | 5 Years | 10 Years | Life of Fund | ||||||||||||||
At NAV | ||||||||||||||||||
Investor Class | 12/06/1999 | 9.12 | % | 1.58 | % | 5.13 | % | –1.67 | % | |||||||||
Institutional Class5 | 04/06/2009 | 9.43 | % | 1.81 | % | 5.25 | % | –1.58 | % | |||||||||
Class A20 | 04/06/2009 | 9.13 | % | 1.55 | % | 5.12 | % | –1.68 | % | |||||||||
Class C20 | 04/06/2009 | 8.14 | % | 1.05 | % | 4.86 | % | –1.87 | % | |||||||||
Class R317 | 05/27/2009 | 8.75 | % | 1.43 | % | 5.05 | % | –1.73 | % | |||||||||
With Sales Charge | ||||||||||||||||||
Class A20 | 2.85 | % | 0.36 | % | 4.50 | % | –2.14 | % | ||||||||||
Class C20 | 7.14 | % | 1.05 | % | 4.86 | % | –1.87 | % | ||||||||||
Index | ||||||||||||||||||
Russell 1000® Growth Index1,16 | 17.37 | % | 3.69 | % | 7.02 | % | –0.26 | % |
The performance data quoted represent past performance and do not indicate future results. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of all income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Management LLC ("Management") had not reimbursed certain expenses and/or waived a portion of the investment management fees during certain of the periods shown. Repayment by a class (of expenses previously reimbursed and/or fees previously waived by Management) will decrease the class's returns. Please see Note B in the Notes to Financial Statements for specific information regarding expense reimbursement and/or fee waiver arrangements.
As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2011 were 1.11%, 0.80%, 1.20%, 1.92% and 1.49% for Investor Class, Institutional Class, Class A, Class C and Class R3 shares, respectively (before expense reimbursements and/or fee waivers, if any). These expense ratios were 0.75%, 1.11%, 1.86% and 1.37% for Institutional Class, Class A, Class C and Class R3 shares, respectively, after expense reimbursements and/or fee waivers. The total annual operating expense ratio for Investor Class includes the class's repayment of expenses previously reimbursed and/or fees previously waived by Management.
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.
47
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. The results shown in the graph reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
48
Large Cap Value Fund Commentary* (Unaudited)
Neuberger Berman Large Cap Value Fund (formerly Neuberger Berman Partners Fund) Investor Class produced a 6.47% total return for the fiscal year ended August 31, 2012, underperforming its benchmark, the Russell 1000® Value Index, which generated a 17.30% total return. (Performance for all share classes is provided in the table immediately following this letter.) Management of the Fund was transferred from the previous portfolio manager in December 2011 and holdings were subsequently repositioned in accordance with the current strategy.
Equities rose considerably over the fiscal year despite a continuous stream of global macro issues, which at times threw the market off course. Stocks were especially volatile in the first half of the reporting period, when the credit crisis in Europe seemed ominous enough to push the U.S. economy into another recession. Towards the middle of the fiscal year, however, European leaders scrambled to devise ways to avert a financial meltdown, and our domestic economy showed signs of resiliency in areas such as manufacturing, industrial production and employment. Corporate earnings also remained strong throughout this time and the release of the Federal Reserve "stress-test" results in March removed an element of uncertainty that had been an overhang on the financial market. These positive factors drove stocks higher as investors felt more comfortable taking on additional risk. The market then lost its momentum from April to June amidst weaker economic data in the U.S. and more negative news out of Europe, which included the possibility of a Greek debt default and exit from the euro as well as a deepening of the solvency woes in Spain.
Equities rallied once again, however, in the last couple of months of the period despite an uncertain macro environment. Corporate earnings continued to surprise to the upside, yet revenue growth was slowing. Economic data was also mixed as consumer spending rose while manufacturing and industrial production was soft. In addition, conditions in key regions such as China were questionable, with falling prices for consumer goods and export and import growth coming in far lower than expected. The rise in stocks during this time seemed to be supported by the latest attempts of European authorities to ease the financial crisis. In addition, many seemed to view the negative economic data as a positive indicator that governments at home and abroad will employ additional monetary easing or other measures to promote growth in their regions.
As investor confidence waxed and waned over the past 12 months, both defensive and cyclical investments drove performance in the large cap-value arena; the Telecommunication Services sector produced the greatest overall return in the index, followed by Consumer Discretionary and Industrials. Commodity sensitive areas such as Energy, Materials, and Utilities lagged the index as a whole for the year.
For the fiscal year, Fund performance relative to the index benefitted from an overweight allocation to Financials (on average) as well as stronger overall stock returns within that segment. Limited exposure to Utilities, one of the softest areas of the market over the period, was also positive for relative performance. Underperformance in Energy, Industrials, Information Technology and Health Care, however, dragged the Fund behind the index for the 12-month period.
For calendar year-to-date 2012, during which the Fund was wholly under new portfolio management, performance relative to the index benefited from an overweight allocation and stronger stock selection in Financials and an underweight allocation to Utilities. Within Financials, our heavier exposure to some of the large commercial banks and brokers (namely Goldman Sachs, Bank of America, and Wells Fargo) drove outperformance. These holdings rose significantly from January to March 2012 due largely to an improving economic environment as well as the release of the bank "stress-test" results from the Federal Reserve. The stocks also benefitted from greater confidence that many of the large banks and brokers in the U.S. could withstand or even profit from a deteriorating financial system in Europe. These names retreated along with their industry peers in April and May on weak domestic economic data, but recovered nicely in the final months of the period. We continue to see a great deal of value in these holdings and believe they should do well over the long term driven by strength in their core businesses as well as their ability to gain market share if capacity
49
from abroad exits the industry. Regarding Utilities, the segment in general lagged the broader market after losing significant ground in the January/February and July/August months. During these intervals the market as a whole experienced confidence-fueled rallies and investors moved out on the risk curve into more cyclical investments. Many utility stocks also suffered as a result of mild winter weather conditions, which affected both demand for power as well as gas/power prices. Though we entered the period already underweight in Utilities, we further reduced our exposure to this sector as we saw greater value among holdings in other areas of the market.
The greatest drag on relative performance from December to August stemmed from the Industrials and Health Care sectors, where our investments in aggregate underperformed the index over the reporting period. A large portion of the weakness in Industrials came from Joy Global, a mining equipment company. A significant drop in the demand for coal has weighed heavily on the company given that much of its mining equipment is used for extracting coal. While we concede that this may still pose a challenge for the stock, Joy Global has continuously posted solid revenue and earnings growth within this difficult environment. Furthermore, we believe the stock's valuation more than compensates for these risks. If the company continues to execute well and the tide turns on the macro front, we believe the stock can appreciate significantly from current levels. Within Health Care, a large detractor from relative performance was medical devices holding Boston Scientific. The stock has underperformed as the company faces a sluggish end market for ICD's and coronary stents (which comprise over half of Boston Scientific's sales) while also experiencing some market-share loss. We believe the stock's valuation adequately reflects these issues, however, and in our opinion there is upside to the name as the company has a pipeline of new technologies that could drive revenue growth going forward.
As we look ahead we see many exogenous factors playing a role in stock market movement; a lack of recovery in the domestic economy combined with the upcoming presidential election and looming "fiscal cliff" all paint an uncertain picture. At the same time, however, the expectation that the Fed will take action to stimulate economic growth may continue to fuel relief rallies. In addition, there seems to be increased confidence that the European Central Bank will do what is necessary to preserve its financial system and that European leaders are committed to reigning in their countries' excesses. In our opinion, the impact of these events on the stock market will remain erratic but we believe that equity valuations on the whole are attractive, particularly among the more economically sensitive areas of the market—segments where we see a great deal of value among stocks that have solid core businesses and catalysts that we believe can sustain them through this difficult period. By investing in these companies, it is our view that we have created a portfolio that can produce favorable risk adjusted returns throughout this economic cycle, and we continue to monitor the correlation among holdings in seeking to achieve a positive risk-reward balance.
Sincerely,
Eli Salzmann
Portfolio Manager
* Effective April 2, 2012, Neuberger Berman Partners Fund changed its name to Neuberger Berman Large Cap Value Fund.
Information about the principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The composition, industries and holdings of the Fund are subject to change.
50
Large Cap Value 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 | 8.1 | % | |||
Consumer Staples | 2.3 | ||||
Energy | 18.3 | ||||
Financials | 30.4 | ||||
Health Care | 9.3 | ||||
Industrials | 12.8 | ||||
Information Technology | 5.4 | ||||
Materials | 10.2 | ||||
Telecommunication Services | 1.4 | ||||
Utilities | 0.8 | ||||
Short-Term Investments | 1.0 | ||||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS7,22 | |||||||||||||||||||
Average Annual Total Return Ended 08/31/2012 | |||||||||||||||||||
Inception Date | 1 Year | 5 Years | 10 Years | Life of Fund | |||||||||||||||
At NAV | |||||||||||||||||||
Investor Class | 01/20/19752 | 6.47 | % | –2.33 | % | 6.42 | % | 12.45 | % | ||||||||||
Trust Class3 | 08/30/1993 | 6.26 | % | –2.51 | % | 6.24 | % | 12.38 | % | ||||||||||
Advisor Class4 | 08/16/1996 | 6.13 | % | –2.66 | % | 6.05 | % | 12.25 | % | ||||||||||
Institutional Class5 | 06/07/2006 | 6.61 | % | –2.17 | % | 6.53 | % | 12.48 | % | ||||||||||
Class A20 | 06/21/2010 | 6.24 | % | –2.44 | % | 6.37 | % | 12.43 | % | ||||||||||
Class C20 | 06/21/2010 | 5.40 | % | –2.77 | % | 6.18 | % | 12.38 | % | ||||||||||
Class R317 | 06/21/2010 | 5.95 | % | –2.55 | % | 6.30 | % | 12.42 | % | ||||||||||
With Sales Charge | |||||||||||||||||||
Class A20 | 0.14 | % | –3.58 | % | 5.74 | % | 12.26 | % | |||||||||||
Class C20 | 4.40 | % | –2.77 | % | 6.18 | % | 12.38 | % | |||||||||||
Index | |||||||||||||||||||
Russell 1000® Value Index1,16 | 17.30 | % | –0.85 | % | 6.57 | % | N/A |
The performance data quoted represent past performance and do not indicate future results. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of all income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Management LLC ("Management") had not reimbursed certain expenses and/or waived a portion of the investment management fees during certain of the periods shown. Repayment by a class (of expenses previously reimbursed and/or fees previously waived by Management) will decrease the class's returns. Please see Note B in the Notes to Financial Statements for specific information regarding expense reimbursement and/or fee waiver arrangements.
As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2011 were 0.85%, 1.04%, 1.19%, 0.69%, 1.29%, 4.61% and 6.07% for Investor Class, Trust Class, Advisor Class, Institutional Class, Class A, Class C and Class R3 shares, respectively (before expense reimbursements and/or fee waivers, if any). These expense ratios were 1.11%, 1.86% and 1.36% for Class A, Class C and Class R3 shares, respectively, after expense reimbursements and/or fee waivers.
Returns shown with a sales charge reflect the deduction of the current maximum initial sales charge of 5.75% for Class A shares and the applicable contingent deferred sales charges (CDSC) for Class C shares. The maximum CDSC for Class C shares is 1%, which is reduced to 0% after 1 year. The performance of the Fund's share classes will differ primarily due to different sales charge structures and class expenses. Please see the prospectus for more information about sales charge structures, if any, and class expenses for your share class.
51
Large Cap Value 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. The results shown in the graph reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
52
Mid Cap Growth Fund Commentary (Unaudited)
Neuberger Berman Mid Cap Growth Fund Investor Class generated a 10.73% total return for the fiscal year ended August 31, 2012, trailing its benchmark, the Russell Midcap® Growth Index, which posted an 11.72% total return. (Performance for all share classes is provided in the table immediately following this letter.)
Fueled by macro and political headlines, the last fiscal year has been a roller-coaster of risk-on/risk-off investor sentiment. Our domestic "wall of worry," offset by a U.S. economy that maintained its moderately paced growth, resolution on the health care reform debate and potential signs of stability in the housing market, has been less onerous than the challenges facing many non-U.S. markets. However, politically driven economic uncertainty continued to mute corporate confidence and, as a result, the appetite for hiring, capital expenditures and M&A activity remained subdued. Despite the U.S. economy's relative stability, we also have not been immune to the issues beyond our borders such as the ongoing European debt saga and questions around China's growth, all of which have continued to create headline volatility and weigh on U.S. companies with meaningful foreign exposure. Despite the aforementioned headwinds and challenges, corporate earnings continued to be strong, margins were solid and guidance realistic, with a cautious tone reflecting a challenging environment.
For the trailing 12 months, every market sector, with the exception of Energy, posted positive returns. Broadly looking at the Fund's sector positioning, our overweight allocations to Energy (overweight in the last three months of the period) and Telecommunication Services, relative to the benchmark proved additive, but were offset by the negative impact of our overweight to Information Technology (IT) and underweights to both Financials and Materials.
Stock selection was a positive overall for the period. In Health Care, Catalyst Health Solutions, a pharmacy benefit management company, agreed to be acquired by SXC Health Solutions, which benefitted the Fund; we have since sold the position. Alexion Pharmaceuticals, with therapeutic products aimed at rare, life-threatening diseases, was the top contributor to Fund performance as the company benefited from positive trials for treatments and their continued international rollout.
SBA Communications, an operator of North American wireless communication towers, benefited from strong execution and positive reaction to several recent acquisitions, which offset inconsistent results and currency worries from NII Holdings, a provider of wireless communication services under the Nextel brand in select Latin American markets.
The portfolio also had strong contributions from Consumer Discretionary names such as Dollar Tree, an operator of discount variety stores, and Ross Stores, an operator of off-price retail apparel and home fashion stores, as well as Tractor Supply, a retail farm supply chain. Dollar Tree and Ross Stores both continued to benefit from budget-conscience consumers trading down from more expensive retail options, while Tractor Supply continued to deliver strong margin improvement. Those names helped offset Focus Media, a digital media company in China, which was negatively impacted by unproven allegations of accounting irregularities. We have sold the position.
Leading contributors in IT were Rackspace Hosting, a provider of cloud-based services for small- and medium-sized businesses, which continued to garner share with their high service approach, and Trimble Navigation, a provider of wireless positioning and tracking technology solutions, which delivered strong results, including margin improvement, despite various macro headwinds. Leading detractors were Rovi Corporation, a provider of integrated solutions for consumer interaction with digital media and entertainment, Universal Display Corp, which is engaged in the development of organic light emitting diodes for flat panel displays, and Solera, a provider of software for the automobile insurance claims industry. Rovi delivered disappointing results and guidance, Universal Display was impacted by speculation around the viability of alternatives to their patented raw materials, and Solera was weighed down by concerns over Europe and significant client contract renewal negotiations. We have sold Rovi, Universal Display and Solera.
Leading detractors included several Energy names as well, such as CARBO Ceramics, a manufacturer of proppants used in extracting oil and gas from shale (which we sold), Complete Production Services, a provider of oil and natural gas production services, and SM Energy, an oil and natural gas exploration and production company. All three companies
53
were negatively impacted by a mix of declining energy prices and rig counts, as well as softening demand driven by macro headwinds.
Based on our current outlook for the balance of 2012, we are likely to remain overweight in Industrials, IT, Health Care and Telecommunication Services and underweighted in Materials, Financials and the Consumer sectors. Our overweight positions reflect our belief that innovative and unique products and services can be catalysts for outperformance in a tough environment. High cyclicality and inconsistent earnings lead us to be underweighted in Materials and concerns over what we believe is the fragile state of the consumer has us underweighted in both Consumer Discretionary and Consumer Staples.
We continue to find what we consider attractive investment opportunities and remain cautiously optimistic that the U.S.'s measured and consistent economic recovery can continue with the potential for a positive finish to 2012 and a good environment for equities in 2013.
Sincerely,
Kenneth J. Turek
Portfolio Manager
Information about the principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The composition, industries and holdings of the Fund are subject to change.
54
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 | 17.4 | % | |||
Consumer Staples | 4.5 | ||||
Energy | 6.5 | ||||
Financials | 4.7 | ||||
Health Care | 14.3 | ||||
Industrials | 19.3 | ||||
Information Technology | 22.1 | ||||
Materials | 3.1 | ||||
Telecommunication Services | 3.8 | ||||
Short-Term Investments | 4.3 | ||||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS7 | |||||||||||||||||||
Average Annual Total Return Ended 08/31/2012 | |||||||||||||||||||
Inception Date | 1 Year | 5 Years | 10 Years | Life of Fund | |||||||||||||||
At NAV | |||||||||||||||||||
Investor Class | 03/01/19792 | 10.73 | % | 2.63 | % | 9.83 | % | 11.68 | % | ||||||||||
Trust Class3 | 08/30/1993 | 10.65 | % | 2.51 | % | 9.65 | % | 11.59 | % | ||||||||||
Advisor Class4 | 09/03/1996 | 10.23 | % | 2.19 | % | 9.31 | % | 11.40 | % | ||||||||||
Institutional Class5 | 04/19/2007 | 10.96 | % | 2.98 | % | 10.02 | % | 11.74 | % | ||||||||||
Class A20 | 05/27/2009 | 10.61 | % | 2.59 | % | 9.81 | % | 11.67 | % | ||||||||||
Class C20 | 05/27/2009 | 9.77 | % | 2.08 | % | 9.53 | % | 11.59 | % | ||||||||||
Class R317 | 05/27/2009 | 10.31 | % | 2.42 | % | 9.71 | % | 11.64 | % | ||||||||||
With Sales Charge | |||||||||||||||||||
Class A20 | 4.23 | % | 1.38 | % | 9.16 | % | 11.48 | % | |||||||||||
Class C20 | 8.77 | % | 2.08 | % | 9.53 | % | 11.59 | % | |||||||||||
Index | |||||||||||||||||||
Russell Midcap® Growth Index1,16 | 11.72 | % | 2.92 | % | 9.97 | % | N/A | ||||||||||||
Russell Midcap® Index1,16 | 13.30 | % | 2.47 | % | 9.88 | % | 13.14 | % |
The performance data quoted represent past performance and do not indicate future results. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of all income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Management LLC ("Management") had not reimbursed certain expenses and/or waived a portion of the investment management fees during certain of the periods shown. Repayment by a class (of expenses previously reimbursed and/or fees previously waived by Management) will decrease the class's returns. Please see Note B in the Notes to Financial Statements for specific information regarding expense reimbursement and/or fee waiver arrangements.
As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2011 were 1.03%, 1.08%, 1.51%, 0.82%, 1.20%, 2.05% and 1.51% for Investor Class, Trust Class, Advisor Class, Institutional Class, Class A, Class C and Class R3 shares, respectively (before expense reimbursements and/or fee waivers, if any). These expense ratios were 0.76%, 1.12%, 1.87%, and 1.37% for Institutional Class, Class A, Class C and Class R3 shares, respectively, after expense reimbursements and/or fee waivers. The total annual operating expense ratio for Advisor Class includes the class's repayment of expenses previously reimbursed and/or fees previously waived by Management.
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.
55
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. The results shown in the graph reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
56
Mid Cap Intrinsic Value Fund Commentary* (Unaudited)
Neuberger Berman Mid Cap Intrinsic Value Fund (formerly Neuberger Berman Regency Fund) Investor Class generated a 12.62% total return for the fiscal year ended August 31, 2012, trailing the Russell Midcap® Value Index, which returned 14.80%. During this period, our contrarian value investing style faced headwinds as the market severely punished stocks that missed expectations. (Performance for all share classes is provided in the table immediately following this letter.)
For the first three-plus months of the reporting period, the Fund was managed by a different portfolio manager. Management of the Fund was transitioned to the Mid Cap Intrinsic Value team in December 2011, when we began to reposition the portfolio in accordance with our investment philosophy. Our team uses bottom-up, fundamental research to identify what we believe are high-quality companies that are trading at a substantial discount to their intrinsic value,1 defined as our estimate of a company's true long-term economic worth, where there is a strategic plan or event that we expect to both enhance value and narrow the value/price gap. Applying a consistent, private equity-style investment framework, we focus our research efforts on a company's long-term outlook and strategic catalysts that can potentially unlock value. Our approach emphasizes asset values and cash flows, directly engaging a company's management team to evaluate its strategic direction, execution abilities and direct incentive compensation.
While our style emphasizes bottom-up stock picking, the challenging macro environment has influenced stock prices. The market persisted with its risk on/risk off behavior. While stocks were down significantly in April and May, they rallied in June on hopes that the Federal Reserve (Fed) and the European Central Bank (ECB) would once again step in with increased liquidity. The rally continued through July and August as the Fed contemplated embarking on a QE3 bond buying program and the ECB moved closer to enacting a plan to support financially weak countries in the eurozone.
Significant risks to the economy remain and recent economic data has been weak. Despite massive liquidity by the Fed, the domestic economic recovery remains meaningfully slower than typical cycles. In addition, the economy faces some significant headwinds including a stagnant labor market, rising gasoline prices, tax increases, political uncertainty, and a failure to address our growing budget deficit. On the international front, Europe, in our view, is clearly in a recession, the severity of which is most likely not fully reflected in the markets. Additionally, China's economy is slowing and faces the uncertainty of a real estate bubble. While corporate balance sheets are very liquid, sales growth remains sluggish and margins are at record levels and may not have much room to improve. In short, risks remain, but it is clear that the monetary authorities are willing to do what it takes to avoid severe contractions in the global economies.
From mid-December 2011 through fiscal year-end, our Utilities and Health Care holdings outperformed relative to the benchmark. The Fund also benefitted from individual stocks regarding which strategic events were announced: Seaspan announced a tender offer to buy back shares at a 43.5% premium over the previous days' close; Avon received an unsolicited takeover offer from Coty, Inc.; Tyco International entered into a definitive agreement to combine its flow control business with Pentair; Sunoco accepted an offer to sell the company at a premium to Energy Transfer Partners; Corrections Corporation of America announced it was exploring creating a REIT structure; and Constellation Brands agreed to acquire the remaining 50% of Crown Imports, which we expect to be highly accretive.
During this period our positioning in the Consumer Discretionary and Financial Services sectors hurt relative performance. In addition, significant pressure placed on several of our Producer Durables holdings (Navistar and Brinks), where stock specific issues surfaced, detracted from the Fund's performance. Finally, a few of our contrarian consumer names (Staples, Best Buy and Safeway) came under pressure despite, in our opinion, compelling valuation levels.
Considerable uncertainties remain and we continue to believe that we are in a global deleveraging cycle that will take more time to work through. While this macroeconomic backdrop is concerning, in our opinion, portfolio valuations remain very attractive and discount a large part of this uncertainty. We have been emphasizing companies that generate substantial free cash flow which has been shared with stockholders through share repurchase programs and dividend payments. We also continue to purchase franchise companies where, in our opinion, transitory, short-term negative issues
57
are putting pressure on the stocks and are already appropriately factored into their prices. We strongly believe that, over time, the true value of an enterprise gets reflected in its stock price and that volatility in the market creates opportunity for value investors. We continue to feel that our cash-generating franchises are selling at material discounts to our estimates of intrinsic value. As a result, we believe that the portfolio is positioned to benefit if, as we expect, the macro environment continues to improve.
Sincerely,
Michael C. Greene
Portfolio Manager
* Effective April 2, 2012, Neuberger Berman Regency Fund changed its name to Neuberger Berman Mid Cap Intrinsic Value Fund.
1 | Intrinsic value reflects the team's analysis and estimates of a company's value. There is no guarantee that any intrinsic values will be realized; security prices may decrease regardless of intrinsic values. |
Information about the principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The composition, industries and holdings of the Fund are subject to change.
58
Mid Cap Intrinsic Value 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 | 8.7 | ||||
Energy | 5.4 | ||||
Financial Services | 16.6 | ||||
Health Care | 12.3 | ||||
Producer Durables | 23.8 | ||||
Technology | 10.4 | ||||
Utilities | 5.9 | ||||
Short-Term Investments | 3.0 | ||||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS7,23 | |||||||||||||||||||
Average Annual Total Return Ended 08/31/2012 | |||||||||||||||||||
Inception Date | 1 Year | 5 Years | 10 Years | Life of Fund | |||||||||||||||
At NAV | |||||||||||||||||||
Investor Class | 06/01/1999 | 12.62 | % | 0.67 | % | 7.92 | % | 7.94 | % | ||||||||||
Trust Class3 | 06/10/1999 | 12.51 | % | 0.64 | % | 7.85 | % | 7.89 | % | ||||||||||
Institutional Class5 | 03/08/2010 | 12.94 | % | 0.84 | % | 8.01 | % | 8.01 | % | ||||||||||
Class A20 | 06/21/2010 | 12.56 | % | 0.66 | % | 7.91 | % | 7.94 | % | ||||||||||
Class C20 | 06/21/2010 | 11.76 | % | 0.35 | % | 7.74 | % | 7.81 | % | ||||||||||
Class R317 | 06/21/2010 | 12.25 | % | 0.55 | % | 7.85 | % | 7.89 | % | ||||||||||
With Sales Charge | |||||||||||||||||||
Class A20 | 6.11 | % | –0.52 | % | 7.28 | % | 7.46 | % | |||||||||||
Class C20 | 10.76 | % | 0.35 | % | 7.74 | % | 7.81 | % | |||||||||||
Index | |||||||||||||||||||
Russell Midcap® Value Index1,16 | 14.80 | % | 1.78 | % | 9.54 | % | 7.69 | % | |||||||||||
Russell Midcap® Index1,16 | 13.30 | % | 2.47 | % | 9.88 | % | 7.11 | % |
The performance data quoted represent past performance and do not indicate future results. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of all income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Management LLC ("Management") had not reimbursed certain expenses and/or waived a portion of the investment management fees during certain of the periods shown. Repayment by a class (of expenses previously reimbursed and/or fees previously waived by Management) will decrease the class's returns. Please see Note B in the Notes to Financial Statements for specific information regarding expense reimbursement and/or fee waiver arrangements.
As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2011 were 1.34%, 1.55%, 1.16%, 1.92%, 3.97% and 6.07% for Investor Class, Trust Class, Institutional Class, Class A, Class C and Class R3 shares, respectively (before expense reimbursements and/or fee waivers, if any). These expense ratios were 1.26%, 0.87%, 1.22%, 1.97% and 1.47% for Trust Class, Institutional Class, Class A, Class C and Class R3 shares, respectively, after expense reimbursements and/or fee waivers.
Returns shown with a sales charge reflect the deduction of the current maximum initial sales charge of 5.75% for Class A shares and the applicable contingent deferred sales charges (CDSC) for Class C shares. The maximum CDSC for Class C shares is 1%, which is reduced to 0% after 1 year. The performance of the Fund's share classes will differ primarily due to different sales charge structures and class expenses. Please see the prospectus for more information about sales charge structures, if any, and class expenses for your share class.
59
Mid Cap Intrinsic Value 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. The results shown in the graph reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
60
Multi-Cap Opportunities Fund Commentary (Unaudited)
Neuberger Berman Multi-Cap Opportunities Fund Institutional Class generated a 15.56% total return for the fiscal year ended August 31, 2012, trailing its benchmark, the S&P 500 Index, which generated an 18.00% total return for the period. (Performance for all share classes is provided in the table immediately following this letter.)
During the reporting period, stocks were supported by strong corporate profits, steady U.S. economic data, and improving investor sentiment. Over the last few months, investors have been focused on several key economic events that could help shape the direction of the economy. These events include the U.S. elections in November, the potential for further Federal Reserve monetary action, and a more comprehensive plan by the European Central Bank to address sovereign debt issues. Despite these uncertainties and heightened market volatility, equities closed the fiscal year on solid footing.
Within the index, select cyclical sectors led the market. Consumer Discretionary and Information Technology outperformed relative to the benchmark, while Energy, Financials and Industrials lagged the benchmark. Defensive sectors were also mixed. Consumer Staples and Health Care were in line with the broader market, while Utilities trailed the overall market. We believe declining stock correlations since the beginning of the year have contributed to the dispersion in performance across sectors.
Within the portfolio, relative performance was largely a function of strong stock selection in the Consumer Discretionary and Materials sectors and overall portfolio positioning. The Fund's overweight position in Consumer Discretionary and underweight position in Financials positively impacted performance. Stock selection in the Information Technology and Energy sectors were the largest detractors from performance during the period. We ended the fiscal year with an overweight, relative to the benchmark, in the Consumer Discretionary, Health Care, Industrials and Materials sectors, while maintaining an underweight position in the Information Technology, Financials and Telecommunication Services sectors.
Portfolio construction is an important component of our investment process and currently consists of three investment categories: Special Situations, Opportunistic and Classic. Special Situations have unique attributes (e.g., restructuring, spin-offs, operating post-bankruptcy) that require specific valuation methodologies and customized investment research. Opportunistic investments are companies that have become inexpensive for a tangible reason and we believe the reason is temporary. Classic investments are those companies with long histories of high-quality management teams, exceptional operating performance, and that are typically shareholder friendly. We believe maintaining a balance of these three categories helps to mitigate risk within the portfolio.
We continue to find well-managed franchises generating stable and growing free cash flow that are trading at what we believe are attractive valuations. Over the past year, we were able to take advantage of heightened price volatility by adding to stocks that were disproportionately sold off in the market relative to fundamentals. We added several new companies to the Fund. We continue to increase our exposure to Opportunistic and Special Situation holdings with attractive risk/return profiles, while exiting Classic holdings that we believe are fully valued. Our investment process is based on deep fundamental research and disciplined valuation analysis to determine the prospects of individual companies.
We continue to believe the current environment is highly attractive for free cash flow oriented investing as free cash flow yields for equities relative to fixed income yields remain at historic highs. Though economic growth may be slow, companies with high free cash flow and prudent management teams can potentially do very well in this type of environment. Dividend increases, share repurchase programs, cash accumulation, debt retirement, organic growth initiatives and selective acquisitions all accrue to the benefit of equity holders. These positive developments are taking place at many of the companies owned by the Fund.
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Our style of investing is based on rigorous fundamental research. The analysis centers on the business model and a company's ability to generate and effectively utilize free cash flow. As we evaluate both potential new positions and current portfolio holdings, we will continue to do so with a long-term investment perspective in mind. As always, our focus is to grow our clients' assets through the disciplined application of our investment philosophy and process.
Sincerely,
Richard S. Nackenson
Portfolio Manager
Information about the principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The composition, industries and holdings of the Fund are subject to change.
62
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 | 19.5 | % | |||
Consumer Staples | 10.0 | ||||
Energy | 11.1 | ||||
Financials | 4.0 | ||||
Health Care | 12.3 | ||||
Industrials | 23.8 | ||||
Information Technology | 6.2 | ||||
Materials | 6.8 | ||||
Utilities | 2.4 | ||||
Short-Term Investments | 3.9 | ||||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS9 | |||||||||||||||||
Average Annual Total Return Ended 08/31/2012 | |||||||||||||||||
Inception Date | 1 Year | 5 Years | Life of Fund | ||||||||||||||
At NAV | |||||||||||||||||
Institutional Class18 | 12/21/2009 | 15.56 | % | 1.69 | % | 3.37 | % | ||||||||||
Class A18 | 12/21/2009 | 15.13 | % | 1.49 | % | 3.19 | % | ||||||||||
Class C18 | 12/21/2009 | 14.22 | % | 1.09 | % | 2.84 | % | ||||||||||
With Sales Charge | |||||||||||||||||
Class A18 | 8.55 | % | 0.29 | % | 2.15 | % | |||||||||||
Class C18 | 13.22 | % | 1.09 | % | 2.84 | % | |||||||||||
Index | |||||||||||||||||
S&P 500 Index1,16 | 18.00 | % | 1.28 | % | 2.68 | % |
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 18 for information about the effects of the different fees paid by each class.
The performance data quoted represent past performance and do not indicate future results. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of all income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Management LLC ("Management") had not reimbursed certain expenses and/or waived a portion of the investment management fees during certain of the periods shown. Repayment by a class (of expenses previously reimbursed and/or fees previously waived by Management) will decrease the class's returns. Please see Note B in the Notes to Financial Statements for specific information regarding expense reimbursement and/or fee waiver arrangements.
As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2011 were 1.22%, 1.70% and 2.44% for Institutional Class, Class A and Class C shares, respectively (before expense reimbursements and/or fee waivers, if any). These expense ratios were 1.02%, 1.37% and 2.13% for Institutional Class, Class A and Class C shares, respectively , after expense reimbursements and/or fee waivers.
Returns shown with a sales charge reflect the deduction of the current maximum initial sales charge of 5.75% for Class A shares and the applicable contingent deferred sales charges (CDSC) for Class C shares. The maximum CDSC for Class C shares is 1%, which is reduced to 0% after 1 year. The performance of the Fund's share classes will differ primarily due to different sales charge structures and class expenses. Please see the prospectus for more information about sales charge structures, if any, and class expenses for your share class.
63
Multi-Cap Opportunities Fund (Unaudited)
COMPARISON OF A $1,000,000 INVESTMENT18 |
(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. The results shown in the graph reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
64
Real Estate Fund Commentary (Unaudited)
Neuberger Berman Real Estate Fund Trust Class generated a 19.53% total return for the fiscal year ended August 31, 2012, but lagged its benchmark, the FTSE NAREIT All Equity REITs Index, which generated a 20.61% total return for the period. (Performance for all share classes is provided in the table immediately following this letter.)
Despite periods of volatility, the real estate investment trust (REIT) market generated strong results during the reporting period. Investor sentiment was impacted at times by a host of macro issues, including the ongoing European sovereign debt crisis and slowing global economic growth. Several setbacks proved to be only temporary in nature. Overall, the REIT market was supported by gradually improving fundamentals and generally solid demand from investors looking to boost their returns in the low interest rate environment.
Given the unsettled macro environment, we adjusted the portfolio early in the reporting period to take a more defensive tilt. This entailed focusing on companies that, in our opinion, are higher quality with lower financial leverage and that have sustainable cash flows. We also increased our allocations to areas of the REIT market that have generally held up well during periods of uncertainty, such as the Apartment sector, while paring our exposures to more cyclical sectors, such as Lodging/Resorts and Shopping Centers. Overall, our more defensive posture detracted somewhat from performance given the market's strong rally, especially from several of the more cyclical sectors in the benchmark.
In aggregate, stock selection contributed to the Fund's relative performance during the reporting period. Looking at individual holdings, regional mall operator Simon Property Group was the Fund's top performer. The company continued to generate strong cash flow growth from its properties. Simon Property Group's shares also benefited as it acquired a stake in leading European mall owner Klépierre at what was viewed as an attractive price. Two of the Fund's holdings in the Health Care sector, Ventas and Health Care REIT Inc., also contributed to performance. Ventas is one of the country's leading senior housing and health care real estate companies, whereas Health Care Properties' focus is on hospital and medical facilities, as well as nursing homes, senior citizen housing and assisted living facilities. Both produced strong returns as concerns regarding federal government reimbursements moderated. Elsewhere, self storage company Public Storage was additive for results as it experienced strengthening fundamentals, including solid cash flow growth. The company also raised its dividend during the reporting period.
Vornado Realty Trust, a large diversified REIT with an emphasis on office space in Washington, D.C. and New York City, detracted from returns. While we held an underweight position relative to the benchmark, the holding was a drag on the Fund's absolute results. It performed poorly due to uncertainties about Washington, D.C. office space demand and investor concerns regarding the company's structure, which was viewed as being overly complex. Management has acknowledged the need for the company to develop a long-term strategy to simplify its business model. Alexandria Real Estate Equities, an office REIT that owns life sciences and laboratory properties, hurt the Fund's performance. We sold the stock as the company has a large development pipeline and what we consider relatively high leverage. An apartment REIT, UDR, was also detrimental to performance. The company made a number of acquisitions during the reporting period and there were concerns that UDR overpaid for these new assets. Equity One, a Shopping Center REIT, was another detractor from results. It made a number of acquisitions which were viewed as being overly aggressive. We eliminated the position to invest in companies that we felt had more attractive assets and investment strategies.
Looking ahead, we maintain our positive intermediate- and long-term outlook for the REIT market. It is our belief that REIT fundamentals will continue to gradually improve, which would support better cash flow growth and increased dividends. Supply and demand technicals also appear positive in our view. Furthermore, we anticipate that new supply will continue to be constrained, whereas demand could remain solid if the economy continues to slowly expand. Finally, we see the potential for further acquisition activity from well-positioned REITs. Despite these positives, we are somewhat wary about the shorter-term prospects for the REIT market given its strong recent performance and several macro issues that could impact investor sentiment. These include uncertainties regarding the overall economy, federal deficit reduction plans, the upcoming "fiscal cliff" and the November elections. Against this backdrop, we currently believe we will
65
maintain our defensive posture for the Fund and continue emphasizing what we think are high-quality REITs with strong balance sheets and relatively low financial leverage.
Sincerely,
Steve S. Shigekawa And Brian Jones
Portfolio Co-Managers
Information about the principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The composition, industries and holdings of the Fund are subject to change.
66
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 | 17.6 | % | ||
Diversified | 8.7 | |||
Health Care | 12.7 | |||
Industrial | 4.1 | |||
Infrastructure | 5.8 | |||
Lodging/Resorts | 3.1 | |||
Mixed | 1.0 | |||
Office | 11.5 | |||
Regional Malls | 16.6 | |||
Self Storage | 6.4 | |||
Shopping Centers | 6.0 | |||
Timber | 4.4 | |||
Short-Term Investments | 2.1 | |||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS7,25 | |||||||||||||||||||||
Average Annual Total Return Ended 08/31/2012 | |||||||||||||||||||||
Inception Date | 1 Year | 5 Years | 10 Years | Life of Fund | |||||||||||||||||
At NAV | |||||||||||||||||||||
Trust Class | 05/01/2002 | 19.53 | % | 6.52 | % | 13.52 | % | 12.91 | % | ||||||||||||
Institutional Class6 | 06/04/2008 | 19.77 | % | 6.70 | % | 13.62 | % | 13.00 | % | ||||||||||||
Class A15 | 06/21/2010 | 19.33 | % | 6.43 | % | 13.48 | % | 12.86 | % | ||||||||||||
Class C15 | 06/21/2010 | 18.40 | % | 6.08 | % | 13.29 | % | 12.69 | % | ||||||||||||
Class R315 | 06/21/2010 | 19.07 | % | 6.31 | % | 13.41 | % | 12.80 | % | ||||||||||||
With Sales Charge | |||||||||||||||||||||
Class A15 | 12.46 | % | 5.18 | % | 12.81 | % | 12.22 | % | |||||||||||||
Class C15 | 17.40 | % | 6.08 | % | 13.29 | % | 12.69 | % | |||||||||||||
Index | |||||||||||||||||||||
FTSE NAREIT All Equity REITs Index1,16 | 20.61 | % | 3.43 | % | 11.19 | % | 10.63 | % |
The performance data quoted represent past performance and do not indicate future results. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of all income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Management LLC ("Management") had not reimbursed certain expenses and/or waived a portion of the investment management fees during certain of the periods shown. Repayment by a class (of expenses previously reimbursed and/or fees previously waived by Management) will decrease the class's returns. Please see Note B in the Notes to Financial Statements for specific information regarding expense reimbursement and/or fee waiver arrangements.
As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2011 were 1.55%, 1.16%, 1.60%, 2.37% and 2.81% for Trust Class, Institutional Class, Class A, Class C and Class R3 shares, respectively (before expense reimbursements and/or fee waivers, if any). These expense ratios were 1.50%, 0.85%, 1.21%, 1.96% and 1.46% for Trust Class, Institutional Class, Class A, Class C and Class R3 shares, respectively, after expense reimbursements and/or fee waivers.
Returns shown with a sales charge reflect the deduction of the current maximum initial sales charge of 5.75% for Class A shares and the applicable contingent deferred sales charges (CDSC) for Class C shares. The maximum CDSC for Class C shares is 1%, which is reduced to 0% after 1 year. The performance of the Fund's share classes will differ primarily due to different sales charge structures and class expenses. Please see the prospectus for more information about sales charge structures, if any, and class expenses for your share class.
67
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 reflect the reinvestment of income dividends and distributions, if any. 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. |
68
Select Equities Fund Commentary (Unaudited)
Neuberger Berman Select Equities Fund Class A shares reported an 11.62% total return at Net Asset Value for the fiscal year ended August 31, 2012. The portfolio underperformed its benchmark, the S&P 500 Index, which generated an 18.00% total return for the period. (Performance for all share classes is provided in the table immediately following this letter.)
Over the course of the fiscal year, the U.S. stock market has been extremely volatile. Stocks traded alternately on fears and relief throughout much of the year, driven by the ongoing European debt and banking crises, a slowdown in the U.S. and China (the world's largest economies), and the possibility of a renewed global recession. We have continued to maintain a very defensive posture and portfolio positioning throughout the fiscal year, with approximately 20% of the portfolio in cash on average for most of the year. We've taken a defensive posture for some time in consideration of the tremendous uncertainty in the marketplace—from the macroeconomic overtones to the approaching U.S. election and risk of the "fiscal cliff" at year-end. In our view, the market rise on stimulus in the form of monetary policy has not translated into meaningful economic growth.
Cash has been the biggest detractor from relative performance as the market has advanced, but given the environment that we see, we remain comfortable with holding some cash. Another detriment to relative performance this year was our small sector allocation to Health Care, a sector that performed surprisingly well after the Supreme Court upheld the Affordable Care Act, an action that removed some of the uncertainty that had been weighing on the sector.
While cash was a drag against a rising market and the Health Care surprise detracted, our stock selection in other sectors was strong throughout the year. Stock selection within Information Technology, Energy and Financials made a significant positive contribution.
Given concerns about the situation in Europe, the economic weakness domestically, and, just as importantly, the increased probability of a hard landing in China, there are numerous concerns in the marketplace. The stock market may face additional headwinds both from a reduction in forecasts for 2012 and 2013 corporate earnings due to slower demand and the impact of a declining euro on foreign exchange rates.
We continue to believe in the Nike "swoosh" trajectory of the growth rate in the U.S. economy, and currently are of the view that we are below-trend in terms of U.S. economic growth, whereas earlier in the year indications suggested we were above-trend. In the near term, we anticipate the market will most likely remain volatile, at least until some of the uncertainties and headwinds are clarified in the months leading into the presidential election and U.S. "fiscal cliff."
Many of the companies that we speak with have reduced their capital spending expectations due to economic and fiscal issues in the U.S. and Europe, and on concerns about the global geopolitical situation. There is a real concern about the impact of the "fiscal cliff," and the possibility of tax rates rising to pre-Bush era levels. We believe these factors could cause economic growth to dampen further, in the worst case, potentially lead to a recession in 2013.
Taking all of this into consideration, we prefer to err on the side of being overly cautious instead of being overly optimistic. From a sector perspective, we continue to shy away from certain types of financial companies as well as certain Consumer Discretionary stocks. While we continue to weight the portfolio in more cyclical types of securities, we aim to offset that risk by holding some cash.
Within our cautious stance, we continuously search for good opportunities. We're diligently looking at all sectors and all market capitalizations for opportunities to put capital to work, taking advantage of near-term market dislocations. We anticipate the slowdown in the U.S. will be less significant than in places like Europe, and are confident that corporations will be in a good position coming out of it. In our view, U.S. corporations are in solid fiscal shape, with strong balance sheets and CEOs that seem to "get it" and who in our opinion are doing a much better job managing through a difficult environment than we've seen in years past.
69
We continue to anticipate elevated volatility between now and the end of the year, and while that is a concern, we continue to take a longer-term view with each specific stock we own. Weighing our near-term concerns against the quality and longer-term opportunities we believe our current holdings represent, we feel very comfortable with our current portfolio.
Sincerely,
Gerald Kaminsky, Michael Kaminsky and Richard Werman
Portfolio Co-Managers
Information about the principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The composition, industries and holdings of the Fund are subject to change.
70
Select Equities Fund (Unaudited)
TICKER SYMBOLS | |||
Institutional Class | NBEIX | ||
Class A | NBEAX | ||
Class C | NBECX |
SECTOR ALLOCATION | |||||
(as a % of Total Investments) | |||||
Consumer Discretionary | 11.7 | % | |||
Energy | 5.8 | ||||
Financials | 18.6 | ||||
Health Care | 3.4 | ||||
Industrials | 26.7 | ||||
Information Technology | 15.5 | ||||
Materials | 8.9 | ||||
Short-Term Investments | 9.4 | ||||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS | |||||||||||||
Average Annual Total Return Ended 08/31/2012 | |||||||||||||
Inception Date | 1 Year | Life of Fund | |||||||||||
At NAV | |||||||||||||
Institutional Class | 12/20/2007 | 12.21 | % | 1.69 | % | ||||||||
Class A | 12/20/2007 | 11.62 | % | 1.34 | % | ||||||||
Class C | 12/20/2007 | 10.71 | % | 0.58 | % | ||||||||
With Sales Charge | |||||||||||||
Class A | 5.21 | % | 0.08 | % | |||||||||
Class C | 9.71 | % | 0.58 | % | |||||||||
Index | |||||||||||||
S&P 500 Index1,16 | 18.00 | % | 1.54 | % |
The performance data quoted represent past performance and do not indicate future results. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of all income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Management LLC ("Management") had not reimbursed certain expenses and/or waived a portion of the investment management fees during certain of the periods shown. Repayment by a class (of expenses previously reimbursed and/or fees previously waived by Management) will decrease the class's returns. Please see Note B in the Notes to Financial Statements for specific information regarding expense reimbursement and/or fee waiver arrangements.
As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2011 were 1.18%, 1.59% and 2.32% for Institutional Class, Class A and Class C shares, respectively (before expense reimbursements and/or fee waivers, if any). These expense ratios were 0.77%, 1.22% and 1.97% for Institutional Class, Class A and Class C shares, respectively, after expense reimbursements and/or fee waivers.
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.
71
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. The results shown in the graph reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
72
Small Cap Growth Fund Commentary (Unaudited)
Neuberger Berman Small Cap Growth Fund Investor Class generated a 9.86% total return for the fiscal year ended August 31, 2012, trailing its benchmark, the Russell 2000® Growth Index, which returned 12.72% for the period. (Performance for all share classes is provided in the table immediately following this letter.)
Fueled by macro and political headlines, much of the fiscal year continued to be a roller-coaster of risk-on/risk-off investor sentiment. Our domestic "wall of worry," offset by a U.S. economy that maintained its moderately paced growth, resolution on the health care reform debate and potential signs of stability in the housing market, has been less onerous than the challenges facing non-U.S. markets. However, politically driven economic uncertainty continued to mute corporate confidence and, as a result, the appetite for hiring, capital expenditures and M&A activity remained subdued. Despite the U.S. economy's relative stability, we also have not been immune to the issues beyond our borders, and the ongoing European debt saga and questions around China's growth engine have continued to create headline volatility and weigh on U.S. companies with meaningful foreign exposure. Despite the aforementioned headwinds and challenges, corporate earnings continued to be strong, margins were solid and guidance realistic, with a cautious tone reflecting a challenging environment.
Broadly looking at sector positioning, our overweight allocations, relative to the benchmark, to Consumer Discretionary and Information Technology (IT) and underweight allocations to both Industrials and Financials proved additive during the period, offsetting our average underweight allocation to Health Care, which proved to be a drag on relative performance.
Drilling down to our holdings, positive stock selection in IT and Consumer Discretionary could not completely overcome weakness in other sectors. The top contributor to performance was Ultimate Software Group, a provider of unified human capital management and employment software, which continued to execute at a high level and benefited from the market's interest in Software-as-a-Service solutions. Additional top contributors from IT were SuccessFactors, a provider of cloud-based business execution software and Netlogic Microsystems, a developer of high-performance and high-speed integrated circuits. Both firms received and accepted offers to be acquired.
While stock selection in Health Care was somewhat polarized, several of our holdings proved successful. The market reacted positively to pharmacy benefit manager SXC Health Solutions' acquisition of a rival, and Zoll Medical, a developer of cardiopulmonary resuscitation devices, received and accepted an offer to be acquired. Air Methods, a provider of air medical emergency transport service, was also a leading contributor to performance as the company benefitted from continued strong execution, economies of scale from recent acquisitions and reasonably good weather. That activity helped to offset the poor performance of Mako Surgical, a medical device company marketing robotic arm solutions for minimally invasive orthopedic implant procedures, which saw new equipment placement fall short of expectations, as hospital capital expenditures tightened.
In Financials, Texas Capital Bancshares, which offers commercial banking services in Texas, was a positive contributor as the company benefited from bank consolidation and the relative strength of the Texas economy. First Cash Financial Services, a chain of pawn and consumer finance stores, detracted from performance over concerns related to the impact of declining gold prices on future earnings.
Leading detractors from performance also included Acco Brands, a developer, manufacturer and supplier of office products, Diamond Foods, a packaged snack food company, and two oil and natural gas exploration and productions companies, Kodiak Oil & Gas and Rosetta Resources. Acco's revenue underwhelmed as the office supply market proved weaker than expected, while Diamond Foods, with brands such as Emerald, Pop Secret and Kettle Chips, was negatively impacted by accounting irregularities and the resulting changes to management and future brand acquisition strategies. Kodiak Oil & Gas and Rosetta Resources were negatively impacted by a mix of declining energy prices and softening demand driven by macro headwinds.
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During the period, we realized the buy-out premiums for SuccessFactors, Netlogic and Zoll Medical and sold SXC Health Solutions (later re-named Catamaran Corp.) due to their higher post-merger market cap. With the exception of Kodiak Oil & Gas, we also sold all of the aforementioned performance detractors.
Based on our current outlook for the balance of 2012, we are likely to remain overweighted in IT and Consumer Discretionary and underweighted in Materials, Industrials and Financials. We believe innovation and unique products and services can be catalysts for outperformance in a tough environment, and our sector overweight positions reflect that belief. Concerns over earnings growth potential and high cyclicality have led us to our underweight positions.
We continue to find what we consider attractive investment opportunities and remain cautiously optimistic that the U.S.'s measured and consistent economic recovery can continue with the potential for a positive finish to 2012 and a good environment for equities in 2013.
Sincerely,
David H. Burstan
Portfolio Manager
Information about the principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The composition, industries and holdings of the Fund are subject to change.
74
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 | 20.7 | % | |||
Consumer Staples | 4.9 | ||||
Energy | 6.1 | ||||
Financials | 4.7 | ||||
Health Care | 19.9 | ||||
Industrials | 14.2 | ||||
Information Technology | 26.1 | ||||
Materials | 2.6 | ||||
Short-Term Investments | 0.8 | ||||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS7 | |||||||||||||||||||||
Average Annual Total Return Ended 08/31/2012 | |||||||||||||||||||||
Inception Date | 1 Year | 5 Years | 10 Years | Life of Fund | |||||||||||||||||
At NAV | |||||||||||||||||||||
Investor Class | 10/20/1998 | 9.86 | % | 0.35 | % | 7.61 | % | 7.41 | % | ||||||||||||
Trust Class3 | 11/03/1998 | 9.68 | % | 0.13 | % | 7.48 | % | 7.27 | % | ||||||||||||
Advisor Class4 | 05/03/2002 | 9.52 | % | –0.07 | % | 7.32 | % | 7.20 | % | ||||||||||||
Institutional Class5 | 04/01/2008 | 10.23 | % | 0.58 | % | 7.73 | % | 7.50 | % | ||||||||||||
Class A20 | 05/27/2009 | 9.87 | % | 0.24 | % | 7.55 | % | 7.37 | % | ||||||||||||
Class C20 | 05/27/2009 | 8.98 | % | –0.25 | % | 7.29 | % | 7.18 | % | ||||||||||||
Class R317 | 05/27/2009 | 9.59 | % | 0.08 | % | 7.47 | % | 7.30 | % | ||||||||||||
With Sales Charge | |||||||||||||||||||||
Class A20 | 3.55 | % | –0.94 | % | 6.92 | % | 6.91 | % | |||||||||||||
Class C20 | 7.98 | % | –0.25 | % | 7.29 | % | 7.18 | % | |||||||||||||
Index | |||||||||||||||||||||
Russell 2000® Growth Index1,16 | 12.72 | % | 2.94 | % | 9.40 | % | 5.88 | % | |||||||||||||
Russell 2000® Index1,16 | 13.40 | % | 1.90 | % | 9.00 | % | 7.59 | % |
The performance data quoted represent past performance and do not indicate future results. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of all income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Management LLC ("Management") had not reimbursed certain expenses and/or waived a portion of the investment management fees during certain of the periods shown. Repayment by a class (of expenses previously reimbursed and/or fees previously waived by Management) will decrease the class's returns. Please see Note B in the Notes to Financial Statements for specific information regarding expense reimbursement and/or fee waiver arrangements.
As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2011 were 1.49%, 1.67%, 1.80%, 1.26%, 1.78%, 2.52% and 2.06% for Investor Class, Trust Class, Advisor Class, Institutional Class, Class A, Class C and Class R3 shares, respectively (before expense reimbursements and/or fee waivers, if any). These expense ratios were 1.30%, 1.40%, 1.60%, 0.90%, 1.26%, 2.01% and 1.51% for Investor Class, Trust Class, Advisor Class, Institutional Class, Class A, Class C and Class R3 shares, respectively, after expense reimbursements and/or fee waivers.
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.
75
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. The results shown in the graph reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
76
Socially Responsive Fund Commentary (Unaudited)
Neuberger Berman Socially Responsive Fund Investor Class generated an 8.13% total return for the fiscal year ended August 31, 2012, trailing its benchmark, the S&P 500 Index, which reported an 18.00% total return. (Performance for all share classes is provided in the table immediately following this letter.)
Since the global financial crisis, our portfolio has been positioned in high-quality companies that we believe are poised to grow in a slow growth world and that can navigate risks presented by the global debt problem, such as the "fat-tail risks" of recession-induced deflation or policy-induced inflation. While these types of risk are always present, we believe the macroeconomic challenges associated with the global debt problem increase their probability relative to past economic cycles.
Despite the market's overall strong returns, the last 12 months have been challenging for many bottom-up, long-term investors. During this time, global macroeconomic news often overshadowed company fundamentals and earnings. Sentiment and stock prices moved rapidly between extremes, first pressured by debt-related economic concerns, then later stimulated by subsequent government and monetary policy actions.
With investor attention narrowly focused on macroeconomic news, quality attributes did not support individual stock returns as they have during previous periods of uncertainty. For example, for much of the period, high-yielding stocks performed well as investors sought the perceived safety of dividends. Many of the highest-yielding stocks do not meet our quality standards, as their businesses do not generate free cash flow from operations to fund dividend payments—a quality characteristic we demand during this uncertain time. Furthermore, we consider many of the highest-yielding sectors statistically expensive, posing a potential valuation risk.
Considering these factors, we avoided some of the highest dividend-paying stocks and sectors. This decision impeded relative performance. While our companies have the financial capacity to pay competitive dividends, many choose to reinvest their excess cash flow from operations back into their businesses for growth, or into repurchasing shares. Over the long run, we think such actions should accrue to the benefit of our shareholders. In the short-to-intermediate term, the financial strength of our companies should protect us from "fat-tail risks" unique to this cycle.
From a sector perspective, the portfolio's underperformance was largely driven by our Energy holdings and discrete situations within Health Care and Information Technology (IT). As macro concerns ebbed and flowed, commodity prices and commodity-sensitive stocks followed suit, holding back the performance of Energy shares. Additionally, a warm winter pressured domestic natural gas prices, hurting domestic producers' stocks. We remain constructive on energy market fundamentals and believe our Energy holdings are attractively valued, financially strong and well positioned for growth.
In Health Care, Hospira, which has been sold, declined after announcing that resolution of ongoing FDA compliance and manufacturing issues would take longer than expected. Within IT, the significant outperformance of Apple shares (up approximately 75% this period) had a disproportionate influence on the sector and benchmark returns. Not owning Apple was a meaningful headwind, as we clearly underestimated the strength of the iPhone product cycle.
Despite challenges, there were several significant positives during the year. For example, Consumer Discretionary stocks Scripps Networks and Comcast, and McCormick & Co. in Consumer Staples, were among our top contributors.
We tactically reduced holdings on strong performance as valuations expanded while adding to or establishing new positions on volatility-driven weakness. For example, we sold diabetes specialist Novo Nordisk, a core holding and significant contributor to returns for approximately seven years. While we believe in the company's prospects, in our view the stock's valuation had begun to reflect much of the fundamental opportunity. Novo Nordisk is a great franchise that, at the right price, we would own again.
Looking ahead, uncertainty persists, from Europe to China to the upcoming "fiscal cliff" in the U.S. However, we also see positive signs. Housing appears to have bottomed in the U.S., which could change a drag on GDP to a neutral-to-positive
77
factor. We also believe the current North American energy renaissance is a strong positive for many domestic industries and energy-related companies, and evidence from back-to-school sales shows that U.S. consumer spending is firm. On the whole, we currently believe U.S. businesses remain solidly profitable and financially strong while equity valuations are attractive.
As fellow shareholders, we remain confident that our portfolio companies are well positioned for this uncertain time. Our quality standards remain high, as does our commitment to owning businesses we believe can deliver advantaged secular growth while upholding the environmental, social and governance principles underlying the Fund. While the past 12 months have been challenging, on the whole it was a period where the businesses of our portfolio companies did better than their stock prices would suggest. If history is any guide, the market share gains and earnings growth of our companies should, over time, drive relative performance gains for the portfolio.
Sincerely,
Arthur Moretti and Ingrid S. Dyott
Portfolio Co-Managers
Information about the principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The composition, industries and holdings of the Fund are subject to change.
78
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 | 9.4 | % | ||
Consumer Staples | 13.2 | |||
Energy | 13.2 | |||
Financials | 15.0 | |||
Health Care | 9.5 | |||
Industrials | 16.0 | |||
Information Technology | 17.6 | |||
Materials | 4.5 | |||
Short-Term Investments | 1.6 | |||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS7 |
Average Annual Total Return Ended 08/31/2012 | ||||||||||||||||||
Inception Date | 1 Year | 5 Years | 10 Years | Life of Fund | ||||||||||||||
At NAV | ||||||||||||||||||
Investor Class | 03/16/1994 | 8.13 | % | 0.83 | % | 7.59 | % | 8.06 | % | |||||||||
Trust Class3 | 03/03/1997 | 7.93 | % | 0.65 | % | 7.40 | % | 7.89 | % | |||||||||
Institutional Class5 | 11/28/2007 | 8.32 | % | 1.00 | % | 7.68 | % | 8.11 | % | |||||||||
Class A20 | 05/27/2009 | 7.89 | % | 0.72 | % | 7.54 | % | 8.03 | % | |||||||||
Class C20 | 05/27/2009 | 7.08 | % | 0.22 | % | 7.27 | % | 7.88 | % | |||||||||
Class R317 | 05/27/2009 | 7.65 | % | 0.55 | % | 7.44 | % | 7.98 | % | |||||||||
With Sales Charge | ||||||||||||||||||
Class A20 | 1.70 | % | –0.46 | % | 6.90 | % | 7.68 | % | ||||||||||
Class C20 | 6.08 | % | 0.22 | % | 7.27 | % | 7.88 | % | ||||||||||
Index | ||||||||||||||||||
S&P 500 Index1,16 | 18.00 | % | 1.28 | % | 6.51 | % | 8.19 | % |
The performance data quoted represent past performance and do not indicate future results. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of all income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Management LLC ("Management") had not reimbursed certain expenses and/or waived a portion of the investment management fees during certain of the periods shown. Repayment by a class (of expenses previously reimbursed and/or fees previously waived by Management) will decrease the class's returns. Please see Note B in the Notes to Financial Statements for specific information regarding expense reimbursement and/or fee waiver arrangements.
As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2011 were 0.90%, 1.08%, 0.74%, 1.14%, 1.89% and 1.36% for Investor Class, Trust Class, Institutional Class, Class A, Class C and Class R3 shares, respectively (before expense reimbursements and/or fee waivers, if any). These expense ratios were 1.12% and 1.87% for Class A and Class C shares, respectively, after expense reimbursements and/or fee waivers. The total annual operating expense ratio for each of Institutional Class and Class R3 includes the class's repayment of expenses previously reimbursed and/or fees previously waived by Management.
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.
79
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. The results shown in the graph reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
80
Value Fund Commentary* (Unaudited)
Neuberger Berman Value Fund (formerly Neuberger Berman Large Cap Value Fund) Institutional Class generated a 13.25% total return for the fiscal year ended August 31, 2012, yet underperformed its benchmark, the Russell 1000® Value Index, which reported a 17.30% total return. (Performance for all share classes is provided in the table immediately following this letter.)
Equities rose considerably over the fiscal year despite a continuous stream of global macro issues, which at times threw the market off course. Stocks were especially volatile in the first half of the period when the credit crisis in Europe seemed ominous enough to push the U.S. economy into another recession. Towards the middle of the fiscal year, however, European leaders scrambled to devise ways to avert a financial meltdown and our domestic economy showed signs of resiliency in areas such as manufacturing, industrial production and employment. Corporate earnings also remained strong throughout this time and the release of the Federal Reserve "stress test" results in March removed an element of uncertainty that had been an overhang on the financial market. These positive factors drove stocks higher as investors felt more comfortable taking on additional risk. The market then lost its momentum from April to June amidst weaker economic data in the U.S., more negative news out of Europe, which included the possibility of a Greek debt default and exit from the eurozone, and a deepening of the solvency woes in Spain.
Equities, however, rallied once again in the last couple of months of the period despite an ambiguous macro environment. Corporate earnings continued to surprise to the upside, yet revenue growth was slowing. Economic data was also mixed as consumer spending rose while manufacturing and industrial production were soft. In addition, conditions in key regions such as China were questionable with falling prices for consumer goods and export and import growth coming in far lower than expected. The rise in stocks during this time seemed to be supported by the latest attempts of European authorities to ease the financial crisis. In addition, many seemed to view the negative economic data as a positive indicator that governments at home and abroad will employ additional monetary easing or other measures to promote growth in their regions.
As investor confidence waxed and waned over the past 12 months, both defensive and cyclical investments drove performance in the large-cap value arena. The Telecommunication Services sector produced the greatest overall return in the index, followed by Consumer Discretionary and Industrials. Commodity sensitive areas such as Energy, Materials and Utilities lagged the index as a whole for the year.
In terms of the Fund, performance relative to the index benefited from an underweight allocation to Utilities on average over the year, as well as heavier exposure to Financials—namely the commercial banks which did exceedingly well over the period. The Utilities segment in general lagged the broader market after losing significant ground in the January–February and July–August months. During these intervals the market as a whole experienced confidence-fueled rallies and investors moved out on the risk curve into more cyclical investments. Many utilities stocks also suffered as a result of mild winter weather conditions, which impacted both demand for power as well as gas/power prices. Though we entered the period already underweighted in Utilities, we further reduced our exposure to this sector as we saw greater value among holdings in other areas of the market. Within Financials, our exposure to commercial banks, where we overweighted several strong names including Wells Fargo, contributed positively to relative results. Wells Fargo and its peers outperformed the market as a whole due mostly to gains garnered in January–March when the improving economic environment as well as the release of the Fed stress test results boosted sentiment towards the industry. The banks also rose on greater confidence that the industry in general could withstand, or even benefit from, a deteriorating financial system in Europe. Although these stocks withdrew a bit over the following months as the credit situation in Europe deteriorated, we continue to see value among our holdings and believe they should do well over the long term driven by strength in their core businesses as well as their ability to gain market share if capacity from abroad exits the industry.
81
The greatest drag on relative performance stemmed from the Information Technology (IT) and Industrials sectors, where our investments in aggregate underperformed the index over the period. Within IT, a large detractor from Fund performance was SanDisk, a company that produces NAND flash memory. The bulk of the loss from SanDisk occurred in April when the company pre-announced earnings that included disappointing revenue and gross margin guidance. However, in our opinion, the main reason for the stock's decline during this time was that management did not host a conference call, prompting investors to be increasingly wary about the results instead of recognizing that the guidance miss was due to a specific OEM-related (Original Equipment Manufacturer) issue that was expected to improve later in the year. Indeed, the stock recovered some of its losses in July after reporting second quarter revenue, earnings and gross margins that were better than expected. We see a great deal of value in the stock at current levels as we believe that capacity reductions in the industry combined with the proliferation of NAND memory in PC's, notebooks, ultrabooks and other devices will set the stage for profitable growth at SanDisk in the future. The greatest loss in the Industrials area came from Joy Global, a mining equipment company. A large drop in the demand for coal has weighed heavily on Joy Global given that much of the company's mining equipment is used for extracting coal. While we concede that this may still be a challenge for the stock, Joy Global has continuously posted solid revenue and earnings growth within this difficult environment. Furthermore, we believe the stock's valuation more than compensates for these risks. If the company continues to execute well and the tide turns on the macro front, we believe the stock can appreciate significantly from current levels.
As we look ahead, we see many exogenous factors playing a role in stock market movement: a lack of recovery in the domestic economy combined with the upcoming presidential election and looming "fiscal cliff" all paint an uncertain picture. At the same time, however, the expectation that the Fed will take action to stimulate economic growth may continue to fuel relief rallies. In addition, there seems to be increased confidence that the European Central Bank will do what is necessary to preserve its financial system and that European leaders are committed to reigning in their countries' excesses. In our opinion, the impact of these events on the stock market will remain erratic but at this time we believe that equity valuations on the whole are attractive, particularly among the more economically sensitive areas of the market. Within these segments we are seeing a great deal of value among stocks that have solid core businesses and catalysts that we believe can sustain them through this difficult period. By investing in these companies, we believe we have created a portfolio that can produce favorable risk-adjusted returns throughout this economic cycle, and as always we continue to monitor the correlation between holdings in order to maintain a positive risk-reward balance.
Sincerely,
Eli M. Salzmann
Portfolio Manager
* Effective April 2, 2012, Neuberger Berman Large Cap Value Fund changed its name to Neuberger Berman Value Fund.
Information about the principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The composition, industries and holdings of the Fund are subject to change.
82
Value Fund (Unaudited)
TICKER SYMBOLS | |||
Institutional Class | NLRLX | ||
Class A | NVAAX | ||
Class C | NVACX |
SECTOR ALLOCATION | |||||
(as a % of Total Investments) | |||||
Consumer Discretionary | 7.7 | % | |||
Consumer Staples | 2.2 | ||||
Energy | 17.9 | ||||
Financials | 29.2 | ||||
Health Care | 9.1 | ||||
Industrials | 12.6 | ||||
Information Technology | 5.2 | ||||
Materials | 9.9 | ||||
Telecommunication Services | 1.4 | ||||
Utilities | 0.7 | ||||
Short-Term Investments | 4.1 | ||||
Total | 100.0 | % |
PERFORMANCE HIGHLIGHTS9,24 | |||||||||||||||||
Average Annual Total Return Ended 08/31/2012 | |||||||||||||||||
Inception Date | 1 Year | 5 Years | Life of Fund | ||||||||||||||
At NAV | |||||||||||||||||
Institutional Class21 | 04/19/2010 | 13.25 | % | 2.63 | % | 4.07 | % | ||||||||||
Class A21 | 03/02/2011 | 12.89 | % | 2.52 | % | 3.98 | % | ||||||||||
Class C21 | 03/02/2011 | 12.07 | % | 2.29 | % | 3.78 | % | ||||||||||
With Sales Charge | |||||||||||||||||
Class A21 | 6.36 | % | 1.32 | % | 2.93 | % | |||||||||||
Class C21 | 11.07 | % | 2.29 | % | 3.78 | % | |||||||||||
Index | |||||||||||||||||
Russell 1000® Value Index1,16 | 17.30 | % | –0.85 | % | 0.56 | % |
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 endnote 21 for information about the effects of the different fees paid by each class.
The performance data quoted represent past performance and do not indicate future results. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of all income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Management LLC ("Management") had not reimbursed certain expenses and/or waived a portion of the investment management fees during certain of the periods shown. Repayment by a class (of expenses previously reimbursed and/or fees previously waived by Management) will decrease the class's returns. Please see Note B in the Notes to Financial Statements for specific information regarding expense reimbursement and/or fee waiver arrangements.
As stated in the Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2011 were 18.36%, 17.09% and 26.32% for Institutional Class, Class A and Class C shares, respectively (before expense reimbursements and/or fee waivers, if any). These expense ratios were 0.77%, 1.13% and 1.88% for Institutional Class, Class A and Class C shares, respectively, after expense reimbursements and/or fee waivers.
Returns shown with a sales charge reflect the deduction of the current maximum initial sales charge of 5.75% for Class A shares and the applicable contingent deferred sales charges (CDSC) for Class C shares. The maximum CDSC for Class C shares is 1%, which is reduced to 0% after 1 year. The performance of the Fund's share classes will differ primarily due to different sales charge structures and class expenses. Please see the prospectus for more information about sales charge structures, if any, and class expenses for your share class.
83
Value Fund (Unaudited)
COMPARISON OF A $1,000,000 INVESTMENT21 |
(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. The results shown in the graph reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results. |
84
Endnotes
1 | Please see "Glossary of Indices" on page 88 for a description of indices. Please note that indices do not take into account any fees, expenses or tax consequences of investing in the individual securities that they track, and that individuals cannot invest directly in any index. Data about the performance of an index is prepared or obtained by Neuberger Berman Management LLC ("Management") and reflects the reinvestment of income dividends and other distributions, if any. The Fund may invest in securities not included in a described index and/or may not invest in all securities included in a described index. |
2 | This date reflects when Management first became the investment manager to the Fund. |
3 | The performance information for the Trust Class prior to the class's inception date is that of the Fund's Investor Class. The performance information for the Investor Class has not been adjusted to take into account differences in class specific operating expenses. The Investor Class has lower expenses and typically higher returns than the Trust Class. |
4 | The performance information for the Advisor Class prior to the class's inception date is that of the Fund's Investor Class. The performance information for the Investor Class has not been adjusted to take into account differences in class specific operating expenses. The Investor Class has lower expenses and typically higher returns than the Advisor Class. |
5 | The performance information for the Institutional Class prior to the class's inception date is that of the Fund's Investor Class. The performance information for 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. |
6 | The performance information for the Institutional Class prior to the class's inception date is that of the Fund's Trust Class. The performance information for the Trust Class has not been adjusted to take into account differences in class specific operating expenses. The Trust Class has higher expenses and typically lower returns than the Institutional Class. |
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 names, investment objectives and investment styles that are similar to those of the Fund. You should be aware that the Fund is likely to differ from the other mutual fund(s) in size, cash flow pattern and tax matters. Accordingly, the holdings and performance of the Fund can be expected to vary from those of the other mutual fund(s). |
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 ("1940 Act"). Performance prior to these changes might have been different if current policies had been in effect. However, by operation of law under the 1940 Act, the Fund subsequently became, and currently operates as, a diversified fund. Please see the notes to the financial statements for information on a non-diversified fund becoming a diversified fund by operation of law. |
9 | Each of Neuberger Berman Emerging Markets Equity Fund, Neuberger Berman Equity Income Fund and Neuberger Berman Multi-Cap Opportunities Fund was relatively small prior to September 2010, June 2008, and January 2010, respectively. Each of Neuberger Berman Global Equity Fund and Neuberger Berman Value Fund (formerly Neuberger Berman Large Cap Value Fund) was relatively small during the periods shown. The same techniques used to produce returns in a small fund may not work to produce similar returns in a larger fund. |
10 | The performance information for Class R3 prior to the class's inception date is that of the Fund's Institutional Class. The performance information for the Institutional Class has not been adjusted to take into account differences in class specific operating expenses (such as Rule 12b-1 fees). The Institutional Class has lower expenses and typically higher returns than Class R3. |
85
Endnotes (cont'd) | |
11 | As of December 17, 2007, the Fund changed its investment policy to become "non-diversified" under the 1940 Act. A non-diversified fund is able to invest larger percentages of its assets in the securities of a single issuer, which could increase the fund's risk of loss. Performance prior to this change might have been different if current policies had been in effect. Although the Fund has a policy that allows it to operate as a non-diversified fund, 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 fund. |
12 | 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. |
13 | 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. |
14 | The performance information for Institutional Class, Class A, Class C and Class R3 prior to June 9, 2008 is that of the Fund's Trust Class, which had an inception date of November 2, 2006, and converted into the Institutional Class on June 9, 2008. During the period from November 2, 2006 through June 9, 2008, the Trust Class had only one investor, which could have impacted Fund performance. The performance information for 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 higher expenses and typically lower returns than the Institutional Class. The Trust Class had lower expenses and typically higher returns than Class A, Class C and Class R3. The performance information for Class R3 from June 9, 2008 to the class's inception date is that of the Fund's Institutional Class. The performance information for the Institutional Class has not been adjusted to take into account differences in class specific operating expenses (such as Rule 12b-1 fees). The Institutional Class has lower expenses and typically higher returns than Class R3. |
15 | The performance information for Class A, Class C and Class R3 prior to the classes' respective inception dates is that of the Fund's Trust Class. The performance information for 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 has lower expenses and typically higher returns than Class A, Class C and Class R3. |
16 | The date used to calculate Life of Fund performance for the index is the inception date of the oldest share class. |
17 | The performance information for Class R3 prior to the class's inception date is that of the Fund's Investor Class. The performance information for the Investor Class 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 R3. |
18 | 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 information for Institutional Class, Class A and Class C prior to December 21, 2009 is that of the Fund's Trust Class, which had an inception date of November 2, 2006, and converted into the Institutional Class on December 21, 2009. During the period from November 2, 2006 through December 21, 2009, the Trust Class had only one investor, which could have impacted Fund performance. The performance information for 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). 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. The Trust Class had equivalent capped expenses and typically similar returns to the Institutional Class. |
86
Endnotes (cont'd) | |
19 | The performance information for Institutional Class, Class A and Class C prior to the classes' inception 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 July 8, 1997 (the commencement of operations) to September 11, 2008 is that of DJG Account, and the performance from September 12, 2008 to May 10, 2010 is that of DJG Fund. 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 1940 Act, the Fund is subject to certain restrictions under the 1940 Act and the Internal Revenue Code ("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, their investment performance may have been adversely affected. The performance information reflects the actual expenses of the Predecessors, which were generally lower than those of the Fund. |
20 | The performance information for Class A and Class C prior to the classes' inception date is that of the Fund's Investor Class. The performance information for 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 and Class C. |
21 | The performance information for Institutional Class, Class A and Class C prior to April 19, 2010 is that of the Fund's Trust Class, which had an inception date of November 2, 2006, and converted into the Institutional Class on April 19, 2010. During the period from November 2, 2006 through April 19, 2010, the Trust Class had only one investor, which could have impacted Fund performance. The performance information for Class A and Class C from April 19, 2010 to the classes' inception date is that of the Fund's Institutional Class. During the period from April 19, 2010 through March 2, 2011, the Institutional Class had only one investor, which could have impacted Fund performance. The performance information for 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 higher expenses and typically lower returns than the Institutional Class. The Trust Class had lower expenses and typically higher returns than Class A and Class C. The Institutional Class has lower expenses and typically higher returns than Class A and Class C. |
22 | Prior to April 2, 2012, Neuberger Berman Large Cap Value Fund was known as Neuberger Berman Partners Fund. |
23 | Prior to April 2, 2012, Neuberger Berman Mid Cap Intrinsic Value Fund was known as Neuberger Berman Regency Fund. |
24 | Prior to April 2, 2012, Neuberger Berman Value Fund was known as Neuberger Berman Large Cap Value Fund. |
25 | As of June 19, 2012, the Fund changed its investment policy to become "non-diversified" under the 1940 Act. A non-diversified fund is able to invest larger percentages of its assets in the securities of a single issuer, which could increase the fund's risk of loss. Performance prior to this change might have been different if current policies had been in effect. |
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
S&P 500 Index: | Widely regarded as the standard for measuring the performance of large-cap stocks traded on U.S. markets and includes a representative sample of leading companies in leading industries. | ||
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 $101 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® companies (the 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 800 smallest companies in the Russell 1000® Index) with lower price-to-book ratios and lower forecasted growth rates. | ||
FTSE NAREIT All 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 MKT. 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 (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: | 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 All Country World Index consisted 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)
As a Fund shareholder, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds (if applicable); and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees (if applicable); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in a Fund and compare these costs with the ongoing costs of investing in other mutual funds.
This table is designed to provide information regarding costs related to your investments. The following examples are based on an investment of $1,000 made at the beginning of the six month period ended August 31, 2012 and held for the entire period. The table illustrates each Fund's costs in two ways:
Actual Expenses and Performance: | The first section of the table provides information about actual account values and actual expenses in dollars, based on the Fund's actual performance during the period. You may use the information in this line, together with the amount you invested, to estimate the expenses you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section of the table under the heading entitled "Expenses Paid During the Period" to estimate the expenses you paid over the period. | ||
Hypothetical Example for Comparison Purposes: | The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return at 5% per year before expenses. This return is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a Fund versus other funds. To do so, compare the expenses shown in this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. |
Please note that the expenses in the tables are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) (if applicable). Therefore, the information under the heading "Hypothetical (5% annual return before expenses)" is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
90
Expense Information as of 8/31/12 (Unaudited)
Neuberger Berman Equity Funds | |||||||||||||||||
ACTUAL | HYPOTHETICAL (5% ANNUAL RETURN BEFORE EXPENSES)(2) | ||||||||||||||||
Beginning Account Value 3/1/12 | Ending Account Value 8/31/12 | Expenses Paid During the Period(1) 3/1/12 - 8/31/12 | Expense Ratio | Beginning Account Value 3/1/12 | Ending Account Value 8/31/12 | Expenses Paid During the Period(1) 3/1/12 - 8/31/12 | Expense Ratio |
Emerging Markets Equity Fund | |||||||||||||||||||
Institutional Class | $1,000.00 | $938.00 | $6.14 | 1.26 | % | $1,000.00 | $1,018.80 | $6.39 | 1.26 | % | |||||||||
Class A | $1,000.00 | $936.60 | $7.35 | 1.51 | % | $1,000.00 | $1,017.55 | $7.66 | 1.51 | % | |||||||||
Class C | $1,000.00 | $933.50 | $10.98 | 2.26 | % | $1,000.00 | $1,013.77 | $11.44 | 2.26 | % | |||||||||
Class R3 | $1,000.00 | $934.60 | $9.34 | 1.92 | % | $1,000.00 | $1,015.48 | $9.73 | 1.92 | % | |||||||||
Equity Income Fund | |||||||||||||||||||
Institutional Class | $1,000.00 | $1,042.80 | $3.54 | .69 | % | $1,000.00 | $1,021.67 | $3.51 | .69 | % | |||||||||
Class A | $1,000.00 | $1,041.60 | $5.70 | 1.11 | % | $1,000.00 | $1,019.56 | $5.63 | 1.11 | % | |||||||||
Class C | $1,000.00 | $1,037.60 | $9.32 | 1.82 | % | $1,000.00 | $1,015.99 | $9.22 | 1.82 | % | |||||||||
Class R3 | $1,000.00 | $1,040.00 | $7.23 | 1.41 | % | $1,000.00 | $1,018.05 | $7.15 | 1.41 | % | |||||||||
Focus Fund | |||||||||||||||||||
Investor Class | $1,000.00 | $1,036.30 | $4.97 | .97 | % | $1,000.00 | $1,020.26 | $4.93 | .97 | % | |||||||||
Trust Class | $1,000.00 | $1,034.80 | $5.93 | 1.16 | % | $1,000.00 | $1,019.30 | $5.89 | 1.16 | % | |||||||||
Advisor Class | $1,000.00 | $1,034.50 | $6.70 | 1.31 | % | $1,000.00 | $1,018.55 | $6.65 | 1.31 | % | |||||||||
Institutional Class | $1,000.00 | $1,037.70 | $3.84 | .75 | % | $1,000.00 | $1,021.37 | $3.81 | .75 | % | |||||||||
Class A | $1,000.00 | $1,035.60 | $5.68 | 1.11 | % | $1,000.00 | $1,019.56 | $5.63 | 1.11 | % | |||||||||
Class C | $1,000.00 | $1,031.10 | $9.50 | 1.86 | % | $1,000.00 | $1,015.79 | $9.42 | 1.86 | % | |||||||||
Genesis Fund | |||||||||||||||||||
Investor Class | $1,000.00 | $994.50 | $5.16 | 1.03 | % | $1,000.00 | $1,019.96 | $5.23 | 1.03 | % | |||||||||
Trust Class | $1,000.00 | $994.30 | $5.56 | 1.11 | % | $1,000.00 | $1,019.56 | $5.63 | 1.11 | % | |||||||||
Advisor Class | $1,000.00 | $993.00 | $6.91 | 1.38 | % | $1,000.00 | $1,018.20 | $7.00 | 1.38 | % | |||||||||
Institutional Class | $1,000.00 | $995.70 | $4.26 | .85 | % | $1,000.00 | $1,020.86 | $4.32 | .85 | % | |||||||||
Global Equity Fund | |||||||||||||||||||
Institutional Class | $1,000.00 | $994.20 | $5.76 | 1.15 | % | $1,000.00 | $1,019.36 | $5.84 | 1.15 | % | |||||||||
Class A | $1,000.00 | $993.00 | $7.56 | 1.51 | % | $1,000.00 | $1,017.55 | $7.66 | 1.51 | % | |||||||||
Class C | $1,000.00 | $989.40 | $11.30 | 2.26 | % | $1,000.00 | $1,013.77 | $11.44 | 2.26 | % | |||||||||
Global Thematic Opportunities Fund | |||||||||||||||||||
Institutional Class | $1,000.00 | $950.00 | $6.13 | 1.25 | % | $1,000.00 | $1,018.85 | $6.34 | 1.25 | % | |||||||||
Class A | $1,000.00 | $947.70 | $7.88 | 1.61 | % | $1,000.00 | $1,017.04 | $8.16 | 1.61 | % | |||||||||
Class C | $1,000.00 | $945.20 | $11.54 | 2.36 | % | $1,000.00 | $1,013.27 | $11.94 | 2.36 | % | |||||||||
Guardian Fund | |||||||||||||||||||
Investor Class | $1,000.00 | $1,022.70 | $4.68 | .92 | % | $1,000.00 | $1,020.51 | $4.67 | .92 | % | |||||||||
Trust Class | $1,000.00 | $1,021.60 | $5.54 | 1.09 | % | $1,000.00 | $1,019.66 | $5.53 | 1.09 | % | |||||||||
Advisor Class | $1,000.00 | $1,019.80 | $7.62 | 1.50 | % | $1,000.00 | $1,017.60 | $7.61 | 1.50 | % | |||||||||
Institutional Class | $1,000.00 | $1,023.30 | $3.76 | .74 | % | $1,000.00 | $1,021.42 | $3.76 | .74 | % | |||||||||
Class A | $1,000.00 | $1,021.70 | $5.64 | 1.11 | % | $1,000.00 | $1,019.56 | $5.63 | 1.11 | % | |||||||||
Class C | $1,000.00 | $1,017.90 | $9.43 | 1.86 | % | $1,000.00 | $1,015.79 | $9.42 | 1.86 | % | |||||||||
Class R3 | $1,000.00 | $1,020.70 | $6.91 | 1.36 | % | $1,000.00 | $1,018.30 | $6.90 | 1.36 | % | |||||||||
International Fund | |||||||||||||||||||
Investor Class | $1,000.00 | $1,000.00 | $8.24 | 1.64 | % | $1,000.00 | $1,016.89 | $8.31 | 1.64 | % | |||||||||
Trust Class | $1,000.00 | $999.50 | $9.45 | 1.88 | % | $1,000.00 | $1,015.69 | $9.53 | 1.88 | % | |||||||||
Class A | $1,000.00 | $1,000.00 | $8.60 | 1.71 | % | $1,000.00 | $1,016.54 | $8.67 | 1.71 | % | |||||||||
Class C | $1,000.00 | $995.60 | $12.49 | 2.49 | % | $1,000.00 | $1,012.62 | $12.60 | 2.49 | % | |||||||||
International Institutional Fund | |||||||||||||||||||
Institutional Class | $1,000.00 | $1,002.20 | $4.28 | .85 | % | $1,000.00 | $1,020.86 | $4.32 | .85 | % |
91
Expense Information as of 8/31/12 (Unaudited) (cont'd)
ACTUAL | HYPOTHETICAL (5% ANNUAL RETURN BEFORE EXPENSES)(2) | ||||||||||||||||
Beginning Account Value 3/1/12 | Ending Account Value 8/31/12 | Expenses Paid During the Period(1) 3/1/12 - 8/31/12 | Expense Ratio | Beginning Account Value 3/1/12 | Ending Account Value 8/31/12 | Expenses Paid During the Period(1) 3/1/12 - 8/31/12 | Expense Ratio |
International Large Cap Fund | ||||||||||||||||||||
Trust Class | $1,000.00 | $987.00 | $6.24 | 1.25 | % | $1,000.00 | $1,018.85 | $6.34 | 1.25 | % | ||||||||||
Institutional Class | $1,000.00 | $989.20 | $4.50 | .90 | % | $1,000.00 | $1,020.61 | $4.57 | .90 | % | ||||||||||
Class A | $1,000.00 | $988.00 | $6.20 | 1.24 | % | $1,000.00 | $1,018.90 | $6.29 | 1.24 | % | ||||||||||
Class C | $1,000.00 | $983.60 | $9.97 | 2.00 | % | $1,000.00 | $1,015.08 | $10.13 | 2.00 | % | ||||||||||
Class R3 | $1,000.00 | $985.80 | $7.54 | 1.51 | % | $1,000.00 | $1,017.55 | $7.66 | 1.51 | % | ||||||||||
Intrinsic Value Fund | ||||||||||||||||||||
Institutional Class | $1,000.00 | $991.30 | $5.01 | 1.00 | % | $1,000.00 | $1,020.11 | $5.08 | 1.00 | % | ||||||||||
Class A | $1,000.00 | $988.30 | $6.80 | 1.36 | % | $1,000.00 | $1,018.30 | $6.90 | 1.36 | % | ||||||||||
Class C | $1,000.00 | $985.20 | $10.53 | 2.11 | % | $1,000.00 | $1,014.53 | $10.68 | 2.11 | % | ||||||||||
Large Cap Disciplined Growth Fund | ||||||||||||||||||||
Investor Class | $1,000.00 | $1,001.30 | $5.58 | 1.11 | % | $1,000.00 | $1,019.56 | $5.63 | 1.11 | % | ||||||||||
Institutional Class | $1,000.00 | $1,002.60 | $3.78 | .75 | % | $1,000.00 | $1,021.37 | $3.81 | .75 | % | ||||||||||
Class A | $1,000.00 | $1,001.30 | $5.58 | 1.11 | % | $1,000.00 | $1,019.56 | $5.63 | 1.11 | % | ||||||||||
Class C | $1,000.00 | $997.30 | $9.34 | 1.86 | % | $1,000.00 | $1,015.79 | $9.42 | 1.86 | % | ||||||||||
Class R3 | $1,000.00 | $1,000.00 | $6.84 | 1.36 | % | $1,000.00 | $1,018.30 | $6.90 | 1.36 | % | ||||||||||
Large Cap Value Fund | ||||||||||||||||||||
Investor Class | $1,000.00 | $1,012.60 | $4.40 | .87 | % | $1,000.00 | $1,020.76 | $4.42 | .87 | % | ||||||||||
Trust Class | $1,000.00 | $1,012.00 | $5.36 | 1.06 | % | $1,000.00 | $1,019.81 | $5.38 | 1.06 | % | ||||||||||
Advisor Class | $1,000.00 | $1,011.00 | $6.12 | 1.21 | % | $1,000.00 | $1,019.05 | $6.14 | 1.21 | % | ||||||||||
Institutional Class | $1,000.00 | $1,013.30 | $3.54 | .70 | % | $1,000.00 | $1,021.62 | $3.56 | .70 | % | ||||||||||
Class A | $1,000.00 | $1,011.60 | $5.31 | 1.05 | % | $1,000.00 | $1,019.86 | $5.33 | 1.05 | % | ||||||||||
Class C | $1,000.00 | $1,007.00 | $9.38 | 1.86 | % | $1,000.00 | $1,015.79 | $9.42 | 1.86 | % | ||||||||||
Class R3 | $1,000.00 | $1,009.90 | $6.87 | 1.36 | % | $1,000.00 | $1,018.30 | $6.90 | 1.36 | % | ||||||||||
Mid Cap Growth Fund | ||||||||||||||||||||
Investor Class | $1,000.00 | $992.50 | $5.01 | 1.00 | % | $1,000.00 | $1,020.11 | $5.08 | 1.00 | % | ||||||||||
Trust Class | $1,000.00 | $992.40 | $5.21 | 1.04 | % | $1,000.00 | $1,019.91 | $5.28 | 1.04 | % | ||||||||||
Advisor Class | $1,000.00 | $990.90 | $6.96 | 1.39 | % | $1,000.00 | $1,018.15 | $7.05 | 1.39 | % | ||||||||||
Institutional Class | $1,000.00 | $994.30 | $3.76 | .75 | % | $1,000.00 | $1,021.37 | $3.81 | .75 | % | ||||||||||
Class A | $1,000.00 | $991.80 | $5.56 | 1.11 | % | $1,000.00 | $1,019.56 | $5.63 | 1.11 | % | ||||||||||
Class C | $1,000.00 | $988.10 | $9.30 | 1.86 | % | $1,000.00 | $1,015.79 | $9.42 | 1.86 | % | ||||||||||
Class R3 | $1,000.00 | $990.90 | $6.81 | 1.36 | % | $1,000.00 | $1,018.30 | $6.90 | 1.36 | % | ||||||||||
Mid Cap Intrinsic Value Fund | ||||||||||||||||||||
Investor Class | $1,000.00 | $1,001.30 | $5.94 | 1.18 | % | $1,000.00 | $1,019.20 | $5.99 | 1.18 | % | ||||||||||
Trust Class | $1,000.00 | $1,000.00 | $6.28 | 1.25 | % | $1,000.00 | $1,018.85 | $6.34 | 1.25 | % | ||||||||||
Institutional Class | $1,000.00 | $1,002.50 | $4.28 | .85 | % | $1,000.00 | $1,020.86 | $4.32 | .85 | % | ||||||||||
Class A | $1,000.00 | $1,000.70 | $6.09 | 1.21 | % | $1,000.00 | $1,019.05 | $6.14 | 1.21 | % | ||||||||||
Class C | $1,000.00 | $997.10 | $9.84 | 1.96 | % | $1,000.00 | $1,015.28 | $9.93 | 1.96 | % | ||||||||||
Class R3 | $1,000.00 | $999.30 | $7.34 | 1.46 | % | $1,000.00 | $1,017.80 | $7.41 | 1.46 | % | ||||||||||
Multi-Cap Opportunities Fund | ||||||||||||||||||||
Institutional Class | $1,000.00 | $1,036.60 | $5.12 | 1.00 | % | $1,000.00 | $1,020.11 | $5.08 | 1.00 | % | ||||||||||
Class A | $1,000.00 | $1,033.80 | $6.95 | 1.36 | % | $1,000.00 | $1,018.30 | $6.90 | 1.36 | % | ||||||||||
Class C | $1,000.00 | $1,030.40 | $10.77 | 2.11 | % | $1,000.00 | $1,014.53 | $10.68 | 2.11 | % | ||||||||||
Real Estate Fund | ||||||||||||||||||||
Trust Class | $1,000.00 | $1,107.10 | $5.51 | 1.04 | % | $1,000.00 | $1,019.91 | $5.28 | 1.04 | % | ||||||||||
Institutional Class | $1,000.00 | $1,107.70 | $4.50 | .85 | % | $1,000.00 | $1,020.86 | $4.32 | .85 | % | ||||||||||
Class A | $1,000.00 | $1,106.30 | $6.41 | 1.21 | % | $1,000.00 | $1,019.05 | $6.14 | 1.21 | % | ||||||||||
Class C | $1,000.00 | $1,101.80 | $10.36 | 1.96 | % | $1,000.00 | $1,015.28 | $9.93 | 1.96 | % | ||||||||||
Class R3 | $1,000.00 | $1,104.40 | $7.72 | 1.46 | % | $1,000.00 | $1,017.80 | $7.41 | 1.46 | % |
92
Expense Information as of 8/31/12 (Unaudited) (cont'd)
ACTUAL | HYPOTHETICAL (5% ANNUAL RETURN BEFORE EXPENSES)(2) | ||||||||||||||||
Beginning Account Value 3/1/12 | Ending Account Value 8/31/12 | Expenses Paid During the Period(1) 3/1/12 - 8/31/12 | Expense Ratio | Beginning Account Value 3/1/12 | Ending Account Value 8/31/12 | Expenses Paid During the Period(1) 3/1/12 - 8/31/12 | Expense Ratio |
Select Equities Fund | |||||||||||||||||||||||||
Institutional Class | $1,000.00 | $1,040.10 | $3.85 | .75 | % | $1,000.00 | $1,021.37 | $3.81 | .75 | % | |||||||||||||||
Class A | $1,000.00 | $1,038.00 | $6.15 | 1.20 | % | $1,000.00 | $1,019.10 | $6.09 | 1.20 | % | |||||||||||||||
Class C | $1,000.00 | $1,033.40 | $9.97 | 1.95 | % | $1,000.00 | $1,015.33 | $9.88 | 1.95 | % | |||||||||||||||
Small Cap Growth Fund | |||||||||||||||||||||||||
Investor Class | $1,000.00 | $1,003.60 | $6.30 | 1.25 | % | $1,000.00 | $1,018.85 | $6.34 | 1.25 | % | |||||||||||||||
Trust Class | $1,000.00 | $1,002.80 | $7.05 | 1.40 | % | $1,000.00 | $1,018.10 | $7.10 | 1.40 | % | |||||||||||||||
Advisor Class | $1,000.00 | $1,002.90 | $7.80 | 1.55 | % | $1,000.00 | $1,017.34 | $7.86 | 1.55 | % | |||||||||||||||
Institutional Class | $1,000.00 | $1,005.60 | $4.54 | .90 | % | $1,000.00 | $1,020.61 | $4.57 | .90 | % | |||||||||||||||
Class A | $1,000.00 | $1,003.80 | $6.35 | 1.26 | % | $1,000.00 | $1,018.80 | $6.39 | 1.26 | % | |||||||||||||||
Class C | $1,000.00 | $1,000.00 | $10.10 | 2.01 | % | $1,000.00 | $1,015.03 | $10.18 | 2.01 | % | |||||||||||||||
Class R3 | $1,000.00 | $1,002.90 | $7.60 | 1.51 | % | $1,000.00 | $1,017.55 | $7.66 | 1.51 | % | |||||||||||||||
Socially Responsive Fund | |||||||||||||||||||||||||
Investor Class | $1,000.00 | $998.10 | $4.47 | .89 | % | $1,000.00 | $1,020.66 | $4.52 | .89 | % | |||||||||||||||
Trust Class | $1,000.00 | $997.20 | $5.27 | 1.05 | % | $1,000.00 | $1,019.86 | $5.33 | 1.05 | % | |||||||||||||||
Institutional Class | $1,000.00 | $998.90 | $3.52 | .70 | % | $1,000.00 | $1,021.62 | $3.56 | .70 | % | |||||||||||||||
Class A | $1,000.00 | $997.20 | $5.57 | 1.11 | % | $1,000.00 | $1,019.56 | $5.63 | 1.11 | % | |||||||||||||||
Class C | $1,000.00 | $993.20 | $9.32 | 1.86 | % | $1,000.00 | $1,015.79 | $9.42 | 1.86 | % | |||||||||||||||
Class R3 | $1,000.00 | $995.50 | $6.62 | 1.32 | % | $1,000.00 | $1,018.50 | $6.70 | 1.32 | % | |||||||||||||||
Value Fund | |||||||||||||||||||||||||
Institutional Class | $1,000.00 | $1,021.00 | $3.61 | .71 | % | $1,000.00 | $1,021.57 | $3.61 | .71 | % | |||||||||||||||
Class A | $1,000.00 | $1,019.20 | $5.43 | 1.07 | % | $1,000.00 | $1,019.76 | $5.43 | 1.07 | % | |||||||||||||||
Class C | $1,000.00 | $1,015.60 | $9.47 | 1.87 | % | $1,000.00 | $1,015.74 | $9.48 | 1.87 | % |
(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 184/366 (to reflect the one-half year period shown), unless otherwise indicated.
(2) Hypothetical 5% annual return before expenses is calculated by multiplying the number of days in the most recent period divided by 366.
93
Schedule of Investments Emerging Markets Equity Fund
TOP TEN EQUITY HOLDINGS | ||||||||||
Country | Industry | |||||||||
1 | Samsung Electronics Co. Ltd. | Korea | Semiconductors & Semiconductor Equipment | 3.0 | % | |||||
2 | Industrial & Commercial Bank of China Ltd., H Shares | China | Commercial Banks | 2.1 | % | |||||
3 | Tencent Holdings Ltd. | China | Internet Software & Services | 1.8 | % | |||||
4 | Hyundai Mobis | Korea | Auto Components | 1.6 | % | |||||
5 | China Mobile Ltd. | China | Wireless Telecommunication Services | 1.6 | % | |||||
6 | Kasikornbank PCL NVDR | Thailand | Commercial Banks | 1.6 | % | |||||
7 | Sberbank of Russia | Russia | Commercial Banks | 1.6 | % | |||||
8 | Baidu, Inc. ADR | China | Internet Software & Services | 1.6 | % | |||||
9 | Axiata Group Berhad | Malaysia | Wireless Telecommunication Services | 1.6 | % | |||||
10 | Vale SA ADR, Preference Shares | Brazil | Metals & Mining | 1.5 | % |
Number of Shares | Value† (000's)z | |||
Common Stocks (97.2%) | ||||
Brazil (9.9%) | ||||
Banco do Estado do Rio Grande do Sul SA Class B, Preference Shares | 174,800 | $ 1,425 | ||
BM&FBOVESPA SA | 282,600 | 1,496 | ||
BR Malls Participacoes SA | 144,000 | 1,795 | ||
Brasil Insurance Participacoes E Administracao SA | 143,100 | 1,375 | ||
Cia Hering | 32,200 | 703 | ||
Companhia de Bebidas das Americas ADR, Preference Shares | 51,600 | 1,941 | ||
Companhia Energetica de Minas Gerais, Preference Shares | 93,300 | 1,593 | ||
Qualicorp SA* | 183,800 | 1,806 | ||
Refinaria de Petroleo Ipiranga SA, Preference SharesÑ*^^ | 173 | 0 | ||
TOTVS SA | 101,925 | 1,981 | ||
Vale SA ADR, Preference Shares | 156,825 | 2,528 | ||
16,643 | ||||
Chile (1.1%) | ||||
Sociedad Quimica y Minera de Chile SA ADR, B Shares | 28,770 | 1,773 | ||
China (20.1%) | ||||
AAC Technologies Holdings, Inc. | 612,600 | 2,089 | ||
Agricultural Bank of China Ltd., H Shares | 6,114,100 | 2,255 | ||
Baidu, Inc. ADR* | 23,900 | 2,663 | ||
China Everbright International Ltd. | 1,547,800 | 764 | ||
China Mengniu Dairy Co. Ltd. | 640,740 | 1,925 | ||
China Liansu Group Holdings Ltd. | 2,498,400 | 1,185 | ||
China Mobile Ltd. | 254,750 | 2,720 | ||
China Resources Gas Group Ltd. | 678,900 | 1,339 | ||
China State Construction International Holdings Ltd. | 1,604,000 | 1,706 | ||
China Vanke Co. Ltd., B Shares | 1,522,400 | 1,904 | ||
Dah Chong Hong Holdings Ltd. | 851,800 | 774 | ||
First Tractor Co. Ltd., H Shares* | 1,705,300 | 1,302 | ||
Golden Eagle Retail Group Ltd. | 518,000 | 955 | ||
Haier Electronics Group Co. Ltd.* | 2,067,300 | 2,439 | ||
Industrial & Commercial Bank of China Ltd., H Shares | 6,408,000 | 3,487 | ||
Prince Frog International Holdings Ltd. | 3,324,300 | 1,016 | ||
Tencent Holdings Ltd. | 99,000 | 3,023 | ||
Vinda International Holdings Ltd. | 1,371,500 | 2,143 | ||
33,689 | ||||
Colombia (3.0%) | ||||
Bancolombia SA ADR | 32,600 | 1,873 | ||
Ecopetrol SA ADR Pacific Rubiales Energy Corp. | 29,400 | 719 | ||
4,952 | ||||
Czech Republic (1.1%) | ||||
Komercni Banka A/S | 9,765 | 1,895 | ||
India (7.8%) | ||||
Asian Paints Ltd. | 21,785 | 1,426 | ||
Ballarpur Industries Ltd. | 863,209 | 272 | ||
Cairn India Ltd.* | 283,681 | 1,725 | ||
Cognizant Technology Solutions Corp. Class A* | 32,400 | 2,083 | ||
Godrej Consumer Products Ltd. | 134,025 | 1,675 | ||
Cummins India Ltd. | 167,745 | 1,390 | ||
Mahindra & Mahindra Ltd. | 158,160 | 2,178 | ||
Petronet LNG Ltd. | 307,300 | 842 | ||
Yes Bank Ltd. | 266,325 | 1,573 | ||
13,164 | ||||
Indonesia (2.5%) | ||||
PT Bank Mandiri (Persero) Tbk | 1,742,100 | 1,425 | ||
PT Semen Gresik (Persero) Tbk | 1,338,100 | 1,740 | ||
PT United Tractors Tbk | 473,081 | 995 | ||
4,160 | ||||
Israel (1.0%) | ||||
Israel Chemicals Ltd. | 153,858 | 1,671 | ||
Korea (11.0%) | ||||
BS Financial Group, Inc. | 224,300 | 2,333 | ||
Hankook Tire Co. Ltd. | 39,570 | 1,451 | ||
Hyundai Mobis | 10,070 | 2,729 | ||
LG Chem Ltd. | 6,055 | 1,606 | ||
Samsung Electronics Co. Ltd. | 4,681 | 5,087 | ||
Silicon Works Co. Ltd. | 44,200 | 1,143 | ||
Sung Kwang Bend Co. Ltd. | 84,814 | 1,798 | ||
Woongjin Coway Co. Ltd. | 65,040 | 2,250 | ||
18,397 |
See Notes to Schedule of Investments
94
Number of Shares | Value† (000's)z | ||
Malaysia (2.8%) | |||
Axiata Group Berhad | 1,355,800 | $2,600 | |
Top Glove Corp. Berhad | 1,185,500 | 2,007 | |
4,607 | |||
Mexico (4.7%) | |||
Alamos Gold, Inc. | 108,400 | 2,038 | |
First Majestic Silver Corp.* | 57,700 | 1,138 | |
Genomma Lab Internacional SAB de CV Class B* | 1,201,000 | 2,424 | |
Kimberly-Clark de Mexico SAB de CV Class A | 1,075,400 | 2,198 | |
7,798 | |||
Nigeria (1.1%) | |||
Afren PLC* | 856,625 | 1,752 | |
Peru (1.0%) | |||
Credicorp Ltd. | 14,400 | 1,736 | |
Philippines (1.4%) | |||
International Container Terminal Services, Inc. | 1,439,840 | 2,344 | |
Qatar (0.9%) | |||
Industries Qatar QSC | 39,615 | 1,506 | |
Russia (6.4%) | |||
Eurasia Drilling Co. Ltd. GDR | 60,465 | 1,817 | |
Magnit OJSC GDR | 75,747 | 2,416 | |
Mail.ru Group Ltd. GDR | 6,685 | 219 | |
NovaTek OAO GDR | 11,770 | 1,404 | |
Rosneft Oil Co. GDR | 165,280 | 977 | |
Sberbank of Russia | 916,540 | 2,663 | |
Yandex NV Class A* | 61,000 | 1,288 | |
10,784 | |||
South Africa (5.1%) | |||
Bidvest Group Ltd. | 73,375 | 1,782 | |
Life Healthcare Group Holdings Ltd. | 564,205 | 2,142 | |
MTN Group Ltd. | 121,028 | 2,261 | |
Shoprite Holdings Ltd. | 118,350 | 2,380 | |
8,565 | |||
Taiwan, Province of China (4.1%) | |||
China Steel Chemical Corp. | 192,400 | 806 | |
Hon Hai Precision Industry Co. Ltd. | 769,461 | 2,178 | |
Simplo Technology Co. Ltd. | 306,103 | 1,809 | |
Taiwan Semiconductor Manufacturing Co. Ltd. | 766,439 | 2,132 | |
6,925 | |||
Thailand (3.1%) | |||
Bangkok Bank PCL NVDR | 170,500 | 1,023 | |
Kasikornbank PCL NVDR | 496,600 | 2,678 | |
PTT PCL | 162,500 | 1,504 | |
5,205 | |||
Turkey (2.6%) | |||
Anadolu Efes Biracilik ve Malt Sanayii A/S | 93,160 | 1,301 | |
Koza Altin Isletmeleri A/S | 64,385 | 1,267 | |
Turkiye Garanti Bankasi A/S | 417,750 | 1,791 | |
4,359 | |||
United Arab Emirates (1.2%) | |||
Dragon Oil PLC | 208,065 | 1,948 | |
United Kingdom (5.3%) | |||
BG Group PLC | 71,785 | 1,468 | |
Hikma Pharmaceuticals PLC | 118,200 | 1,370 | |
Kenmare Resources PLC* | 2,318,175 | 1,410 | |
Petrofac Ltd. | 47,455 | 1,132 | |
SABMiller PLC | 49,210 | 2,197 | |
Tullow Oil PLC | 62,006 | 1,342 | |
8,919 | |||
Total Common Stocks (Cost $157,467) | 162,792 | ||
Short-Term Investments (2.5%) | |||
State Street | |||
Institutional | |||
Treasury Money | |||
Market Fund | |||
Institutional Class | |||
(Cost $4,124) | 4,124,308 | 4,124 | |
Total Investments## (99.7%) (Cost $161,591) | 166,916 | ||
Cash, receivables and other assets, less liabilities (0.3%) | 570 | ||
Total Net Assets (100.0%) | $167,486 |
See Notes to Schedule of Investments
95
SUMMARY SCHEDULE OF INVESTMENTS BY INDUSTRY EMERGING MARKETS EQUITY FUND |
Industry | Investments at Value† (000's omitted) | Percentage of Net Assets | |||||||
Commercial Banks | $26,157 | 15.6 | % | ||||||
Oil, Gas & Consumable Fuels | 16,041 | 9.6 | % | ||||||
Metals & Mining | 8,381 | 5.0 | % | ||||||
Semiconductors & Semiconductor Equipment | 8,362 | 5.0 | % | ||||||
Wireless Telecommunication Services | 7,581 | 4.5 | % | ||||||
Chemicals | 7,282 | 4.3 | % | ||||||
Internet Software & Services | 7,193 | 4.3 | % | ||||||
Beverages | 5,439 | 3.2 | % | ||||||
Food & Staples Retailing | 4,796 | 2.9 | % | ||||||
Household Durables | 4,689 | 2.8 | % | ||||||
Household Products | 4,341 | 2.6 | % | ||||||
Auto Components | 4,180 | 2.5 | % | ||||||
Health Care Providers & Services | 3,948 | 2.4 | % | ||||||
Pharmaceuticals | 3,794 | 2.3 | % | ||||||
Real Estate Management & Development | 3,699 | 2.2 | % | ||||||
Machinery | 3,687 | 2.2 | % | ||||||
Industrial Conglomerates | 3,288 | 2.0 | % | ||||||
Building Products | 2,983 | 1.8 | % | ||||||
Energy Equipment & Services | 2,949 | 1.8 | % | ||||||
Personal Products | 2,691 | 1.6 | % | ||||||
Transportation Infrastructure | 2,344 | 1.4 | % | ||||||
Automobiles | 2,178 | 1.3 | % | ||||||
Electronic Equipment, Instruments & Components | 2,178 | 1.3 | % | ||||||
Communications Equipment | 2,089 | 1.2 | % | ||||||
IT Services | 2,083 | 1.2 | % | ||||||
Health Care Equipment & Supplies | 2,007 | 1.2 | % | ||||||
Software | 1,981 | 1.2 | % | ||||||
Food Products | 1,925 | 1.1 | % | ||||||
Computers & Peripherals | 1,809 | 1.1 | % | ||||||
Construction Materials | 1,740 | 1.0 | % | ||||||
Construction & Engineering | 1,706 | 1.0 | % | ||||||
Electric Utilities | 1,593 | 0.9 | % | ||||||
Diversified Financial Services | 1,496 | 0.9 | % | ||||||
Insurance | 1,375 | 0.8 | % | ||||||
Gas Utilities | 1,339 | 0.8 | % | ||||||
Multiline Retail | 955 | 0.6 | % | ||||||
Distributors | 774 | 0.5 | % | ||||||
Commercial Services & Supplies | 764 | 0.5 | % | ||||||
Specialty Retail | 703 | 0.4 | % | ||||||
Paper & Forest Products | 272 | 0.2 | % | ||||||
Short-Term Investments and Other Assets—Net | 4,694 | 2.8 | % | ||||||
$167,486 | 100.0 | % |
See Notes to Schedule of Investments
96
Schedule of Investments Equity Income Fund
TOP TEN EQUITY HOLDINGS |
1 | Royal Gold, Inc. | 2.0 | % | ||||
2 | CenturyLink, Inc. | 1.8 | % | ||||
3 | Unilever NV | 1.8 | % | ||||
4 | Franco-Nevada Corp. | 1.8 | % | ||||
5 | Linear Technology Corp. | 1.7 | % | ||||
6 | Weyerhaeuser Co. | 1.7 | % | ||||
7 | China Mobile Ltd. ADR | 1.7 | % | ||||
8 | Taiwan Mobile Co. Ltd. | 1.7 | % | ||||
9 | CenterPoint Energy, Inc. | 1.6 | % | ||||
10 | Novartis AG ADR | 1.6 | % |
Number of Shares | Value† (000's)z | |||
Common Stocks (79.5%) | ||||
Aerospace & Defense (0.4%) | ||||
Honeywell International, Inc. | 180,000 | $ 10,521 | ||
Beverages (0.6%) | ||||
Treasury Wine Estates Ltd. | 3,256,933 | 15,916 | ||
Capital Markets (1.3%) | ||||
BlackRock, Inc. | 191,500 | 33,775 | ||
Chemicals (1.4%) | ||||
Israel Chemicals Ltd. | 3,400,000 | 36,936 | ||
Communications Equipment (0.5%) | ||||
Cisco Systems, Inc. | 685,000 | 13,070 | ||
Diversified Financial Services (0.3%) | ||||
Warsaw Stock Exchange | 18,000 | 184 | ||
Warsaw Stock Exchangeñ | 692,000 | 7,078 | ||
7,262 | ||||
Diversified Telecommunication Services (4.5%) | ||||
CenturyLink, Inc. | 1,134,000 | 47,923 | ||
Chunghwa Telecom Co. Ltd. ADR | 1,140,000 | 34,245 | ||
Singapore Tele-communications Ltd. | 12,900,000 | 35,083 | ||
117,251 | ||||
Electric Utilities (6.9%) | ||||
Enersis SA ADR | 1,055,000 | 17,376 | ||
Exelon Corp. | 754,000 | 27,498 | ||
Great Plains Energy, Inc. | 1,495,000 | 31,873 | ||
Northeast Utilities | 720,240 | 27,131 | ||
NV Energy, Inc. | 1,198,000 | 21,013 | ||
PPL Corp. | 1,111,000 | 32,586 | ||
Xcel Energy, Inc. | 820,000 | 22,870 | ||
180,347 | ||||
Food Products (1.8%) | ||||
Unilever NV | 1,371,000 | 47,683 | ||
Gas Utilities (1.0%) | ||||
New Jersey Resources Corp. | 565,000 | 25,318 | ||
Household Durables (0.8%) | ||||
Garmin Ltd. | 485,000 | 19,570 | ||
Machinery (0.1%) | ||||
AG Growth International, Inc. | 84,800 | 2,767 | ||
Media (2.1%) | ||||
BEC World PCL | 11,055,000 | 18,346 | ||
Meredith Corp. | 1,154,000 | 37,574 | ||
55,920 | ||||
Metals & Mining (5.9%) | ||||
Franco-Nevada Corp.‡‡ | 893,200 | 46,268 | ||
Freeport-McMoRan Copper & Gold, Inc. | 664,000 | 23,977 | ||
Newmont Mining Corp. | 600,000 | 30,408 | ||
Royal Gold, Inc.‡‡ | 594,800 | 52,354 | ||
153,007 | ||||
Multi-Utilities (7.5%) | ||||
Alliant Energy Corp. | 699,000 | 30,812 | ||
CenterPoint Energy, Inc. | 2,104,000 | 42,901 | ||
NiSource, Inc. | 1,578,000 | 38,408 | ||
PG&E Corp. | 570,000 | 24,744 | ||
Sempra Energy‡‡ | 530,000 | 35,086 | ||
Wisconsin Energy Corp. | 653,000 | 24,788 | ||
196,739 | ||||
Oil, Gas & Consumable Fuels (7.4%) | ||||
ARC Resources Ltd. | 1,365,500 | 32,376 | ||
Canadian Oil Sands Ltd. | 1,600,000 | 34,155 | ||
Crescent Point Energy Corp. | 769,000 | 31,852 | ||
Kinder Morgan, Inc. | 1,120,000 | 40,062 | ||
PetroChina Co. Ltd. ADR | 263,000 | 31,639 | ||
Statoil ASA | 475,000 | 12,196 | ||
Statoil ASA ADR‡‡ | 450,000 | 11,506 | ||
193,786 | ||||
Pharmaceuticals (6.7%) | ||||
Bristol-Myers Squibb Co. | 801,000 | 26,441 | ||
Johnson & Johnson | 559,000 | 37,693 | ||
Novartis AG ADR | 693,000 | 40,894 | ||
Roche Holding AG ADR | 800,000 | 36,400 | ||
Sanofi ADR‡‡ | 806,000 | 33,006 | ||
174,434 | ||||
Real Estate Investment Trusts (18.1%) | ||||
American Campus Communities, Inc. | 738,800 | 34,443 | ||
Ascendas Real Estate Investment Trustñ | 1,840,000 | 3,484 | ||
Ascendas Real Estate Investment Trust | 5,105,000 | 9,665 | ||
Campus Crest Communities, Inc. | 659,316 | 7,121 | ||
Digital Realty Trust, Inc. | 265,000 | 19,745 | ||
Equity Residential | 428,000 | 25,851 | ||
HCP, Inc.‡‡ | 845,400 | 38,770 | ||
Japan Logistics Fund, Inc. | 2,540 | 22,774 | ||
Mapletree Logistics Trust | 14,280,000 | 12,716 | ||
Parkway Life Real Estate Investment Trust | 6,059,000 | 9,333 | ||
Plum Creek Timber Co., Inc. | 841,000 | 34,422 | ||
Prologis, Inc. | 770,000 | 26,311 | ||
Public Storage | 182,000 | 26,492 | ||
Rayonier, Inc. | 716,000 | 35,077 | ||
RLJ Lodging Trust | 1,810,000 | 32,290 | ||
Suntec Real Estate Investment Trust | 11,972,000 | 13,878 | ||
Ventas, Inc.‡‡ | 615,400 | 40,303 | ||
Vornado Realty Trust | 316,000 | 25,650 | ||
Weyerhaeuser Co.‡‡ | 1,769,000 | 44,066 |
See Notes to Schedule of Investments
97
Number of Shares | Value† (000's)z | |||
Yuexiu Real Estate Investment Trust | 18,428,000 | $ 8,577 | ||
470,968 | ||||
Semiconductors & Semiconductor Equipment (3.0%) | ||||
Linear Technology Corp. | 1,348,000 | 44,518 | ||
Microchip Technology, Inc. | 944,000 | 32,804 | ||
77,322 | ||||
Thrifts & Mortgage Finance (1.4%) | ||||
New York Community Bancorp, Inc. | 2,746,000 | 36,412 | ||
Tobacco (1.2%) | ||||
Philip Morris International,Inc.‡‡ | 352,000 | 31,434 | ||
Transportation Infrastructure (0.9%) | ||||
SATS Ltd. | 11,258,500 | 23,574 | ||
Water Utilities (1.0%) | ||||
Aqua America,Inc.‡‡ | 1,006,000 | 25,150 | ||
Wireless Telecommunication Services (4.7%) | ||||
China Mobile Ltd. ADR‡‡ | 810,500 | 43,516 | ||
Philippine Long Distance Telephone Co.ADR | 569,000 | 36,586 | ||
Taiwan Mobile Co. Ltd. | 11,693,600 | 43,337 | ||
123,439 | ||||
Total Common Stocks (Cost $1,871,412) | 2,072,601 | |||
Convertible Preferred Stocks (0.4%) | ||||
Bunge Ltd., 4.88% | ||||
(Cost $11,614) | 119,000 | 11,355 | ||
Principal Amount | Value† (000's)z | |||
Convertible Bonds (13.7%) | ||||
Charles River Laboratories International, Inc., Senior Unsecured Notes, 2.25%, due 6/15/13 | 28,124,000 | 28,300 | ||
Greatbatch, Inc., Subordinated Debentures, 2.25%, due 6/15/13 | 13,440,000 | 13,390 | ||
Hologic, Inc., Senior Unsecured Notes, Step-Down, 2.00%/0.00%, due 12/15/37a | 37,885,000 | 37,459 | ||
Iconix Brand Group, Inc., Senior Subordinated Notes, 2.50%, due 6/1/16ñ | 20,275,000 | 20,123 | ||
Illumina, Inc., Senior Unsecured Notes, 0.25%, due 3/15/16ñ | 38,175,000 | 34,835 | ||
James River Coal Co., Senior Unsecured Notes, 3.13%, due 3/15/18 | 16,230,000 | 5,356 | ||
James River Coal Co., Senior Unsecured Notes, 4.50%, due 12/1/15 | 10,645,000 | 4,710 | ||
Kinross Gold Corp., Senior Unsecured Notes, 1.75%, due 3/15/28 | 23,890,000 | 23,830 | ||
L-3 Communications Holdings, Inc., Guaranteed Notes, 3.00%, due 8/1/35 | 39,670,000 | 39,372 | ||
McMoRan Exploration Co., Senior Unsecured Notes, 4.00%, due 12/30/17 | 7,510,000 | 7,998 | ||
Medicis Pharmaceutical Corp., Senior Unsecured Notes, 1.38%, due 6/1/17 | 13,630,000 | 13,426 | ||
NuVasive, Inc., Senior Unsecured Notes, 2.75%, due 7/1/17 | 13,635,000 | 12,783 | ||
Patriot Coal Corp., Senior Unsecured Notes, 3.25%, due 5/31/13‡ | 14,515,000 | 1,760 | ||
Primaris Retail Real Estate Investment Trust, Subordinated Notes, 5.40%, due 11/30/18ñ | 11,500,000 | 12,082 | ||
RTI International Metals, Inc., Guaranteed Notes, 3.00%, due 12/1/15 | 7,230,000 | 7,320 | ||
SanDisk Corp., Senior Unsecured Notes, 1.50%, due 8/15/17 | 6,365,000 | 7,049 | ||
Siemens Finan-cieringsmaatschappij NV, Guaranteed Notes, 1.65%, due 8/16/19 | 15,500,000 | 15,374 | ||
Southern Pacific Resource Corp., Subordinated Debentures, 6.00%, due 6/30/16 | 6,450,000 | 6,903 | ||
Stillwater Mining Co., Senior Unsecured Notes, 1.88%, due 3/15/28 | 2,250,000 | 2,233 | ||
TIBCO Software, Inc., Senior Unsecured Notes, 2.25%, due 5/1/32ñ | 12,175,000 | 12,205 | ||
Trinity Industries, Inc., Subordinated Notes, 3.88%, due 6/1/36 | 14,060,000 | 14,271 | ||
WebMD Health Corp., Senior Unsecured Notes, 2.25%, due 3/31/16 | 13,470,000 | 12,291 | ||
WebMD Health Corp., Senior Unsecured Notes, 2.50%, due 1/31/18 | 19,600,000 | 16,048 |
See Notes to Schedule of Investments
98
Principal Amount | Value† (000's)z | |||
Wright Medical Group, Inc., Senior Unsecured Notes, 2.00%, due 8/15/17ñ | $ 7,550,000 | $ 8,012 | ||
Total Convertible Bonds (Cost $377,102) | 357,130 | |||
Number of Shares | ||||
Short-Term Investments (4.7%) | ||||
State Street Institutional Treasury Money Market Fund Institutional Class (Cost $122,852) | 122,852,189 | 122,852 | ||
Total Investments## (98.3%) (Cost $2,382,980) | 2,563,938 | |||
Cash, receivables and other assets, less liabilities‡‡± (1.7%) | 43,464 | |||
Total Net Assets (100.0%) | $2,607,402 |
See Notes to Schedule of Investments
99
TOP TEN EQUITY HOLDINGS |
1 | Google, Inc. Class A | 4.9 | % | |||
2 | Cabot Oil & Gas Corp. | 4.7 | % | |||
3 | Apple, Inc. | 4.6 | % | |||
4 | MetLife, Inc. | 4.5 | % | |||
5 | Honeywell International, Inc. | 4.4 | % | |||
6 | EOG Resources, Inc. | 4.1 | % | |||
7 | Covidien PLC | 3.8 | % | |||
8 | NiSource, Inc. | 3.6 | % | |||
9 | Target Corp. | 3.6 | % | |||
10 | J.P. Morgan Chase & Co. | 3.6 | % |
Number of Shares | Value† (000's)z | |||
Common Stocks (98.8%) | ||||
Aerospace & Defense (6.9%) | ||||
Boeing Co. | 200,000 | $ 14,280 | ||
Honeywell International, Inc. | 425,000 | 24,841 | ||
39,121 | ||||
Chemicals (1.3%) | ||||
WR Grace & Co.* | 130,000 | 7,509 | ||
Commercial Banks (3.5%) | ||||
Wells Fargo & Co. | 575,000 | 19,567 | ||
Computers & Peripherals (8.1%) | ||||
Apple, Inc. | 39,000 | 25,945 | ||
NetApp, Inc.* | 185,000 | 6,386 | ||
SanDisk Corp.* | 315,000 | 12,984 | ||
45,315 | ||||
Containers & Packaging (1.0%) | ||||
Silgan Holdings, Inc. | 130,000 | 5,451 | ||
Diversified Financial Services (3.6%) | ||||
J.P. Morgan Chase & Co. | 540,000 | 20,056 | ||
Food Products (5.3%) | ||||
Hillshire Brands Co. | 385,000 | 10,037 | ||
Kraft Foods, Inc. Class A | 480,000 | 19,934 | ||
29,971 | ||||
Health Care Equipment & Supplies (3.8%) | ||||
Covidien PLC | 380,000 | 21,299 | ||
Health Care Providers & Services (6.6%) | ||||
Cardinal Health, Inc. | 500,000 | 19,775 | ||
Express Scripts Holding Co.* | 280,000 | 17,534 | ||
37,309 | ||||
Household Products (2.3%) | ||||
Procter & Gamble Co. | 195,000 | 13,102 | ||
Insurance (7.1%) | ||||
Allstate Corp. | 395,000 | 14,726 | ||
MetLife, Inc. | 740,000 | 25,256 | ||
39,982 | ||||
Internet Software & Services (4.9%) | ||||
Google, Inc. Class A* | 40,500 | 27,746 | ||
Leisure Equipment & Products (2.7%) | ||||
Mattel, Inc. | 430,000 | 15,110 | ||
Life Sciences Tools & Services (1.1%) | ||||
Illumina, Inc.* | 145,300 | 6,114 | ||
Machinery (2.3%) | ||||
Pall Corp. | 235,000 | 13,045 | ||
Media (5.5%) | ||||
Comcast Corp. Class A Special | 580,000 | 19,064 | ||
Viacom, Inc. Class B | 180,000 | 9,002 | ||
Walt Disney Co. | 55,000 | 2,721 | ||
30,787 | ||||
Metals & Mining (1.7%) | ||||
Barrick Gold | 30,000 | 1,156 | ||
Freeport-McMoRan Copper & Gold, Inc. | 240,000 | 8,666 | ||
9,822 | ||||
Multi-Utilities (3.6%) | ||||
NiSource, Inc. | 835,000 | 20,324 | ||
Multiline Retail (3.6%) | ||||
Target Corp. | 315,000 | 20,188 | ||
Oil, Gas & Consumable Fuels (11.3%) | ||||
Cabot Oil & Gas Corp. | 640,000 | 26,502 | ||
Cenovus Energy, Inc. | 430,000 | 14,061 | ||
EOG Resources, Inc. | 212,000 | 22,960 | ||
63,523 | ||||
Semiconductors & Semiconductor Equipment (2.5%) | ||||
ASML Holding | ||||
N.V. ADR | 250,000 | 14,192 | ||
Software (4.8%) | ||||
Activision Blizzard, Inc. | 885,000 | 10,408 | ||
Oracle Corp. | 520,000 | 16,458 | ||
26,866 | ||||
Specialty Retail (2.7%) | ||||
Urban Outfitters, Inc.* | 400,000 | 15,016 | ||
Tobacco (2.6%) | ||||
Lorillard, Inc. | 115,000 | 14,434 | ||
Total Common Stocks (Cost $491,364) | 555,849 | |||
Short-Term Investments (1.1%) | ||||
State Street Institutional Treasury Money Market Fund Institutional Class (Cost $6,340) | 6,339,699 | 6,340 | ||
Total Investments## (99.9%) (Cost $497,704) | 562,189 | |||
Cash, receivables and other assets, less liabilities (0.1%) | 837 | |||
Total Net Assets (100.0%) | $ 563,026 |
See Notes to Schedule of Investments
100
Schedule of Investments Genesis Fund
TOP TEN EQUITY HOLDINGS |
1 | Church & Dwight Co., Inc. | 2.9 | % | ||||
2 | AptarGroup, Inc. | 2.5 | % | ||||
3 | Compass Minerals International, Inc. | 2.2 | % | ||||
4 | CLARCOR, Inc. | 2.0 | % | ||||
5 | Oceaneering International, Inc. | 2.0 | % | ||||
6 | MICROS Systems, Inc. | 1.8 | % | ||||
7 | Wabtec Corp. | 1.8 | % | ||||
8 | IDEXX Laboratories, Inc. | 1.7 | % | ||||
9 | Haemonetics Corp. | 1.6 | % | ||||
10 | Harris Teeter Supermarkets, Inc. | 1.6 | % |
Number of Shares | Value† (000's)z | |||
Common Stocks (94.2%) | ||||
Air Freight & Logistics (0.5%) | ||||
Forward Air Corp.^ | 1,746,600 | $ 58,721 | ||
Auto Components (0.5%) | ||||
Gentex Corp. | 3,225,349 | 56,508 | ||
Beverages (0.9%) | ||||
Boston Beer Co., Inc. Class A*^ | 967,419 | 99,673 | ||
Building Products (0.1%) | ||||
AAON, Inc. | 25,000 | 460 | ||
AO Smith Corp. | 254,474 | 13,922 | ||
14,382 | ||||
Capital Markets (0.4%) | ||||
Eaton Vance Corp. | 1,010,600 | 27,377 | ||
Waddell & Reed Financial, Inc. Class A | 736,461 | 21,799 | ||
49,176 | ||||
Chemicals (5.4%) | ||||
Balchem Corp.^ | 1,596,335 | 58,234 | ||
Hawkins, Inc. | 473,473 | 18,285 | ||
Innophos Holdings, Inc.^ | 1,811,400 | 85,661 | ||
Intrepid Potash, Inc.* | 3,480,399 | 78,065 | ||
LSB Industries, Inc.*^ | 1,372,700 | 51,751 | ||
NewMarket Corp. | 381,812 | 93,972 | ||
RPM International, Inc. | 2,509,444 | 68,784 | ||
Sensient Technologies Corp.^ | 3,942,917 | 141,354 | ||
Stepan Co. | 262,716 | 25,095 | ||
621,201 | ||||
Commercial Banks (3.2%) | ||||
Bank of Hawaii Corp. | 1,523,517 | 70,432 | ||
BankUnited, Inc. | 748,030 | 18,888 | ||
BOK Financial Corp. | 1,024,094 | 58,957 | ||
Cullen/Frost Bankers, Inc. | 1,385,800 | 77,050 | ||
First Financial Bankshares, Inc. | 1,433,094 | 49,843 | ||
Westamerica Bancorporation^ | 1,995,243 | 92,879 | ||
368,049 | ||||
Commercial Services & Supplies (5.0%) | ||||
Copart, Inc.* | 5,316,362 | 142,000 | ||
Healthcare Services Group, Inc.^ | 5,493,381 | 116,295 | ||
Ritchie Bros. Auctioneers, Inc. | 3,795,210 | 70,819 | ||
Rollins, Inc. | 6,390,120 | 148,762 | ||
United Stationers, Inc.^ | 4,279,541 | 103,522 | ||
581,398 | ||||
Communications Equipment (0.6%) | ||||
NETGEAR, Inc.*^ | 2,046,800 | 74,851 | ||
Containers & Packaging (3.2%) | ||||
AptarGroup, Inc.^ | 5,609,200 | 284,106 | ||
Silgan Holdings, Inc. | 2,051,983 | 86,040 | ||
370,146 | ||||
Distributors (0.9%) | ||||
Pool Corp.^ | 2,690,223 | 105,968 | ||
Diversified Consumer Services (0.3%) | ||||
Matthews International Corp. Class A | 110,026 | 3,293 | ||
Strayer Education, Inc. | 410,902 | 26,618 | ||
29,911 | ||||
Electrical Equipment (0.1%) | ||||
Thermon Group Holdings, Inc.* | 522,718 | 11,949 | ||
Electronic Equipment, Instruments & Components (1.4%) | ||||
Badger Meter, Inc. | 657,205 | 22,286 | ||
FEI Co. | 877,948 | 47,155 | ||
Trimble Navigation Ltd.* | 1,896,948 | 93,045 | ||
162,486 | ||||
Energy Equipment & Services (4.2%) | ||||
CARBO Ceramics, Inc.^ | 1,580,100 | 111,207 | ||
Lufkin Industries, Inc. | 1,339,561 | 70,220 | ||
Natural Gas Services Group, Inc.*^ | 829,800 | 11,443 | ||
Oceaneering International, Inc. | 4,280,724 | 229,190 | ||
Pason Systems, Inc.^ | 4,182,657 | 63,138 | ||
485,198 | ||||
Food & Staples Retailing (1.7%) | ||||
Harris Teeter Supermarkets, Inc.^ | 4,774,967 | 186,558 | ||
North West Co., Inc. | 695,000 | 15,236 | ||
201,794 | ||||
Food Products (2.1%) | ||||
Darling International, Inc.* | 1,601,200 | 26,612 | ||
Flowers Foods, Inc. | 3,031,600 | 62,603 | ||
J & J Snack Foods Corp.^ | 1,169,046 | 66,752 | ||
Lancaster Colony Corp. | 1,211,556 | 87,765 | ||
243,732 | ||||
Gas Utilities (2.4%) | ||||
New Jersey Resources Corp. | 1,980,200 | 88,733 | ||
Northwest | ||||
Natural Gas Co. | 849,900 | 41,789 | ||
Piedmont Natural Gas Co., Inc. | 760,100 | 23,738 | ||
South Jersey Industries, Inc.^ | 1,558,844 | 78,909 | ||
See Notes to Schedule of Investments
101
Number of Shares | Value† (000's)z | |||
WGL Holdings, Inc. | 1,149,395 | $ 44,872 | ||
278,041 | ||||
Health Care Equipment & Supplies (6.6%) | ||||
Abaxis, Inc.*^ | 1,208,100 | 45,268 | ||
Cyberonics, Inc.* | 208,135 | 10,392 | ||
DENTSPLY International, Inc. | 1,731,100 | 62,787 | ||
Haemonetics Corp.*^ | 2,570,000 | 189,332 | ||
IDEXX Laboratories, Inc.* | 2,111,234 | 200,694 | ||
Meridian Bioscience, Inc.^ | 3,382,797 | 59,808 | ||
Sirona Dental Systems, Inc.* | 2,146,226 | 114,050 | ||
West Pharmaceutical Services, Inc.^ | 1,730,229 | 81,926 | ||
764,257 | ||||
Health Care Providers & Services (4.8%) | ||||
AmSurg Corp.*^ | 1,703,534 | 50,101 | ||
Henry Schein, Inc.* | 2,319,540 | 178,164 | ||
Landauer, Inc.^ | 501,750 | 29,423 | ||
MWI Veterinary Supply, Inc.*^ | 1,171,529 | 118,113 | ||
Owens & Minor, Inc. | 1,571,400 | 43,983 | ||
Patterson Cos., Inc. | 2,226,600 | 75,638 | ||
PSS World Medical, Inc.*^ | 2,914,399 | 62,922 | ||
558,344 | ||||
Health Care Technology (0.3%) | ||||
Quality Systems, Inc. | 2,127,410 | 37,591 | ||
Hotels, Restaurants & Leisure (1.4%) | ||||
Bally Technologies, Inc.* | 1,356,988 | 60,101 | ||
Brinker International, Inc. | 2,684,100 | 92,494 | ||
Cheesecake Factory, Inc. | 135,600 | 4,503 | ||
157,098 | ||||
Household Durables (0.2%) | ||||
Leggett & Platt, Inc. | 1,237,200 | 29,371 | ||
Household Products (2.9%) | ||||
Church & Dwight Co., Inc. | 6,211,710 | $340,029 | ||
Industrial Conglomerates (0.9%) | ||||
Raven Industries, Inc.^ | 3,584,352 | 108,857 | ||
Insurance (3.2%) | ||||
Brown & Brown, Inc. | 451,670 | 11,852 | ||
Hanover Insurance Group, Inc. | 63,897 | 2,280 | ||
HCC Insurance Holdings, Inc. | 1,213,500 | 40,143 | ||
Infinity Property & Casualty Corp. | 196,900 | 11,046 | ||
Mercury General Corp. | 303,030 | 11,603 | ||
RenaissanceRe Holdings Ltd. | 1,347,953 | 104,129 | ||
RLI Corp.^ | 1,563,807 | 99,083 | ||
Safety Insurance Group, Inc.^ | 1,115,749 | 50,532 | ||
Validus Holdings Ltd. | 1,354,400 | 45,386 | ||
376,054 | ||||
IT Services (1.5%) | ||||
Forrester Research, Inc.^ | 1,178,888 | 34,518 | ||
Jack Henry & Associates, Inc. | 1,991,653 | 73,611 | ||
Sapient Corp.* | 1,510,800 | 15,274 | ||
Syntel, Inc. | 807,162 | 47,058 | ||
170,461 | ||||
Leisure Equipment & Products (1.6%) | ||||
Polaris Industries, Inc. | 2,460,320 | 184,991 | ||
Life Sciences Tools & Services (1.2%) | ||||
ICON PLC ADR*^ | 3,750,000 | 85,950 | ||
PAREXEL International Corp.* | 791,900 | 22,799 | ||
Techne Corp. | 419,700 | 28,779 | ||
137,528 | ||||
Machinery (10.3%) | ||||
AG Growth International, Inc.^ | 806,800 | 26,322 | ||
CLARCOR, Inc.^ | 4,809,422 | 231,526 | ||
Donaldson Co., Inc. | 4,696,700 | 165,746 | ||
Douglas Dynamics, Inc. | 299,551 | 4,200 | ||
Graco, Inc. | 823,117 | 40,662 | ||
Lincoln Electric Holdings, Inc. | 961,864 | 39,677 | ||
Lindsay Corp.^ | 1,077,341 | 70,415 | ||
Middleby Corp.* | 210,000 | 24,181 | ||
Nordson Corp. | 2,779,508 | 163,463 | ||
Tennant Co. | 742,502 | 31,148 | ||
Toro Co. | 1,638,188 | 60,941 | ||
Valmont Industries, Inc. | 989,604 | 125,432 | ||
Wabtec Corp.^ | 2,699,900 | 210,970 | ||
1,194,683 | ||||
Metals & Mining (3.4%) | ||||
Alamos Gold, Inc. | 5,840,600 | 110,130 | ||
Compass Minerals International, Inc.^ | 3,512,400 | 252,261 | ||
Major Drilling Group International | 2,894,500 | 27,472 | ||
389,863 | ||||
Office Electronics (0.9%) | ||||
Zebra Technologies Corp. | ||||
Class A*^ | 2,760,970 | 102,957 | ||
Oil, Gas & Consumable Fuels (5.0%) | ||||
Abraxas Petroleum Corp.* | 1,293,448 | 2,626 | ||
Cabot Oil & Gas Corp. | 4,209,100 | 174,299 | ||
Concho Resources, Inc.* | 1,740,692 | 156,210 | ||
Gulfport Energy Corp.* | 2,542,800 | 66,875 | ||
Kodiak Oil & Gas Corp.* | 4,526,037 | 40,463 | ||
Oasis Petroleum, Inc.* | 2,095,580 | 61,463 | ||
Painted Pony Petroleum Ltd.* | 2,240,900 | 21,535 | ||
SM Energy Co. | 1,255,800 | 59,311 | ||
582,782 | ||||
Paper & Forest Products (0.2%) | ||||
Stella-Jones, Inc. | 422,700 | 24,537 | ||
Professional Services (0.5%) | ||||
Exponent, Inc.*^ | 1,166,935 | 60,751 | ||
Real Estate Management & Development (0.7%) | ||||
Altisource Portfolio Solutions SA* | 908,370 | 76,566 | ||
See Notes to Schedule of Investments
102
Number of Shares | Value† (000's)z | |||
Road & Rail (0.2%) | ||||
Genesee & Wyoming, Inc. Class A* | 284,400 | $ 18,076 | ||
Semiconductors & Semiconductor Equipment (1.2%) | ||||
Hittite Microwave | ||||
Corp.*^ | 1,923,320 | 100,724 | ||
Power Integrations, Inc. | 1,071,900 | 37,131 | ||
137,855 | ||||
Software (6.1%) | ||||
Blackbaud, Inc. | 1,913,538 | 46,652 | ||
Computer Modelling Group Ltd.^ | 3,109,500 | 57,096 | ||
Constellation Software, Inc. | 110,600 | 11,249 | ||
Constellation Software, Inc.b | 650,000 | 65,450 | ||
FactSet Research Systems, Inc. | 1,224,800 | 113,012 | ||
Manhattan Associates, Inc.* | 314,600 | 15,912 | ||
MICROS Systems, Inc.*^ | 4,190,242 | 212,278 | ||
Solera Holdings, Inc.^ | 4,402,104 | 181,059 | ||
702,708 | ||||
Specialty Retail (3.8%) | ||||
Hibbett Sports, Inc.*^ | 1,845,669 | 107,123 | ||
Leon's Furniture Ltd. | 1,100,500 | 12,810 | ||
Sally Beauty Holdings, Inc.* | 5,514,459 | 151,648 | ||
Tractor Supply Co. | 1,785,741 | 170,502 | ||
442,083 | ||||
Textiles, Apparel & Luxury | ||||
Goods (0.6%) | ||||
Wolverine World Wide, Inc. | 1,410,785 | 66,349 | ||
Thrifts & Mortgage Finance (1.2%) | ||||
Brookline Bancorp, Inc.^ | 4,067,590 | 34,534 | ||
Capitol Federal Financial, Inc. | 706,352 | 8,384 | ||
Ocwen Financial Corp.* | 2,390,300 | 61,503 | ||
Oritani Financial Corp. | 2,059,000 | 30,123 | ||
134,544 | ||||
Trading Companies & Distributors (1.8%) | ||||
Applied Industrial Technologies, Inc.^ | 95,734 | 2,353,344 | ||
MSC Industrial Direct Co., Inc. Class A | 881,300 | 61,074 | ||
Richelieu Hardware Ltd. | 393,000 | 13,141 | ||
Watsco, Inc. | 480,179 | 36,234 | ||
206,183 | ||||
Water Utilities (0.8%) | ||||
American States Water Co. | 840,811 | 36,643 | ||
Aqua America, Inc. | 2,302,535 | 57,563 | ||
94,206 | ||||
Total Common Stocks (Cost $6,710,137) | 10,911,908 | |||
Exchange Traded Funds (0.9%) | ||||
SPDR Gold Shares* (Cost $58,435) | 616,050 | 101,168 | ||
Short-Term Investments (4.8%) | ||||
State Street Institutional Treasury Money Market Fund Institutional Class | 370,358,856 | 370,359 | ||
State Street Institutional Treasury Plus Fund Institutional Class^ | 182,460,973 | 182,461 | ||
Total Short-Term Investments (Cost $552,820) | 552,820 | |||
Total Investments## (99.9%) (Cost $7,321,392) | 11,565,896 | |||
Cash, receivables and other assets, less liabilities (0.1%) | 14,593 | |||
Total Net Assets (100.0%) | $11,580,489 |
See Notes to Schedule of Investments
103
Schedule of Investments Global Equity Fund
TOP TEN EQUITY HOLDINGS |
Country | Industry | |||||
1 | Apple, Inc. | United States | Computers & Peripherals | 3.2 | % | |
2 | CVS Caremark Corp. | United States | Food & Staples Retailing | 1.6 | % | |
3 | TOYOTA MOTOR Corp. | Japan | Automobiles | 1.6 | % | |
4 | Covidien PLC | United States | Health Care Equipment & Supplies | 1.6 | % | |
5 | Unilever NV | Netherlands | Food Products | 1.5 | % | |
6 | Experian PLC | United Kingdom | Professional Services | 1.5 | % | |
7 | Wal-Mart Stores, Inc. | United States | Food & Staples Retailing | 1.5 | % | |
8 | IBM Corp. | United States | IT Services | 1.5 | % | |
9 | Microsoft Corp. | United States | Software | 1.4 | % | |
10 | Jupiter Telecommunications Co. Ltd. | Japan | Media | 1.4 | % |
Number of Shares | Value† (000's)z | |||
Common Stocks (97.9%) | ||||
Australia (0.7%) | ||||
Iluka Resources Ltd. | 3,275 | $31 | ||
Belgium (1.3%) | ||||
Anheuser-Busch InBev NV | 681 | 57 | ||
Canada (5.3%) | ||||
Cenovus Energy, Inc. | 933 | 30 | ||
Goldcorp, Inc. | 1,315 | 54 | ||
Home Capital Group, Inc. | 920 | 48 | ||
New Gold, Inc* | 5,305 | 59 | ||
Silver Wheaton Corp. | 1,310 | 45 | ||
236 | ||||
China (1.0%) | ||||
China Mobile Ltd. | 4,150 | 44 | ||
France (2.6%) | ||||
Eutelsat Communications SA | 1,130 | 35 | ||
Pernod-Ricard SA | 315 | 34 | ||
Schneider Electric SA | 791 | 50 | ||
119 | ||||
Germany (4.5%) | ||||
Continental AG | 500 | 50 | ||
Deutsche Boerse AG | 900 | 46 | ||
Fresenius Medical Care AG & Co. | 623 | 45 | ||
Linde AG | 377 | 59 | ||
200 | ||||
Indonesia (1.0%) | ||||
PT Bank Mandiri (Persero) Tbk | 56,800 | 47 | ||
Israel (0.5%) | ||||
Check Point Software Technologies Ltd.* | 460 | 21 | ||
Japan (6.3%) | ||||
BRIDGESTONE Corp. | 1,400 | 33 | ||
FANUC Corp. | 220 | 36 | ||
Jupiter Telecommunications Co. Ltd. | 61 | 62 | ||
KEYENCE Corp. | 100 | 26 | ||
SOFTBANK Corp. | 1,300 | 53 | ||
TOYOTA MOTOR Corp. | 1,800 | 71 | ||
281 | ||||
Korea (0.8%) | ||||
Hyundai Mobis | 132 | 36 | ||
Netherlands (2.3%) | ||||
Koninklijke Ahold NV | 2,741 | 34 | ||
Unilever NV | 1,966 | 69 | ||
103 | ||||
Nigeria (0.8%) | ||||
Afren PLC* | 16,700 | 34 | ||
Norway (0.8%) | ||||
DnB ASA | 2,980 | 34 | ||
Singapore (1.4%) | ||||
United Overseas Bank Ltd. | 4,000 | 61 | ||
Sweden (1.9%) | ||||
Elekta AB, B Shares | 890 | 45 | ||
Telefonaktiebolaget LM Ericsson, B Shares | 4,470 | 42 | ||
87 | ||||
Switzerland (5.7%) | ||||
Givaudan SA* | 45 | 42 | ||
Nestle SA | 840 | 52 | ||
Novartis AG | 570 | 34 | ||
Partners Group Holding AG | 125 | 24 | ||
Roche Holding AG | 246 | 45 | ||
SGS SA | 29 | 59 | ||
256 | ||||
United Kingdom (7.4%) | ||||
BG Group PLC ADR | 2,050 | 42 | ||
BHP Billiton PLC | 1,490 | 43 | ||
Experian PLC | 4,260 | 68 | ||
Petrofac Ltd. | 1,830 | 44 | ||
Subsea 7 SA | 1,590 | 36 | ||
Tullow Oil PLC | 1,830 | 40 | ||
Vodafone Group PLC | 20,854 | 60 | ||
333 | ||||
United States (53.6%) | ||||
Alliance Data Systems Corp.* | 165 | 23 | ||
Altera Corp. | 1,270 | 47 | ||
American Tower Corp. | 725 | 51 | ||
AMETEK, Inc. | 1,230 | 42 | ||
Apple, Inc. | 214 | 142 | ||
BlackRock, Inc. | 258 | 45 | ||
Capital One Financial Corp. | 1,035 | 58 | ||
Cardinal Health, Inc. | 1,030 | 41 | ||
Celanese Corp. Class A | 905 | 35 | ||
Charles Schwab Corp. | 2,200 | 30 | ||
Comcast Corp. Class A Special | 1,570 | 52 | ||
Covidien PLC | 1,260 | 71 | ||
CVS Caremark Corp. | 1,610 | 73 | ||
Deere & Co. | 565 | 42 | ||
Dow Chemical Co. | 1,310 | 38 | ||
Dun & Bradstreet Corp. | 390 | 32 | ||
EMC Corp.* | 1,700 | 45 | ||
EOG Resources, Inc. | 387 | 42 | ||
Exxon Mobil Corp. | 505 | 44 | ||
Gilead Sciences, Inc.* | 570 | 33 | ||
Global Payments, Inc. | 500 | 21 | ||
Henry Schein, Inc.* | 550 | 42 | ||
IBM Corp. | 337 | 66 | ||
Ingersoll-Rand PLC | 1,310 | 61 | ||
Johnson & Johnson | 870 | 59 | ||
Laboratory Corporation of America Holdings* | 480 | 42 | ||
Mattel, Inc. | 1,295 | 45 | ||
McDonald's Corp. | 445 | 40 |
See Notes to Schedule of Investments
104
Number of Shares | Value† (000's)z | ||
McGraw-Hill Cos., Inc. | 735 | $ 38 | |
Microsoft Corp. | 2,075 | 64 | |
National Oilwell Varco, Inc. | 625 | 49 | |
NetApp, Inc.* | 1,375 | 47 | |
Nordson Corp. | 800 | 47 | |
Oracle Corp. | 1,570 | 50 | |
Pall Corp. | 1,010 | 56 | |
QUALCOMM, Inc. | 690 | 42 | |
SanDisk Corp.* | 1,180 | 49 | |
Schlumberger Ltd. | 585 | 42 | |
Sealed Air Corp. | 1,600 | 23 | |
Sirona Dental Systems, Inc.* | 930 | 49 | |
Time Warner, Inc. | 1,330 | 55 | |
Union Pacific Corp. | 285 | 35 | |
United Technologies Corp. | 565 | 45 | |
UnitedHealth Group, Inc. | 885 | 48 | |
Visa, Inc. Class A | 403 | 52 | |
Wabtec Corp. | 590 | 46 | |
Wal-Mart Stores, Inc. | 930 | 68 | |
Waste Connections, Inc. | 1,435 | 42 | |
Waters Corp.* | 535 | 43 | |
Wells Fargo & Co. | 1,460 | 50 | |
2,402 | |||
Total Common Stocks (Cost $4,284) | 4,382 | ||
Short-Term Investments (2.6%) | |||
State Street Institutional Treasury Money Market Fund Institutional Class (Cost $117) | 116,922 | 117 | |
Total Investments## (100.5%) (Cost $4,401) | 4,499 | ||
Liabilities, less cash, receivables and other assets [(0.5%)] | (22 | ) | |
Total Net Assets (100.0%) | $ 4,477 |
See Notes to Schedule of Investments
105
SUMMARY SCHEDULE OF INVESTMENTS BY INDUSTRY GLOBAL EQUITY FUND |
Industry | Investments at Value† (000's omitted) | Percentage of Net Assets | |||||||
Machinery | $ | 288 | 6.4 | % | |||||
Computers & Peripherals | 283 | 6.3 | % | ||||||
Media | 242 | 5.4 | % | ||||||
Metals & Mining | 232 | 5.2 | % | ||||||
Oil, Gas & Consumable Fuels | 232 | 5.2 | % | ||||||
Health Care Providers & Services | 218 | 4.9 | % | ||||||
Commercial Banks | 192 | 4.3 | % | ||||||
Food & Staples Retailing | 175 | 3.9 | % | ||||||
Chemicals | 174 | 3.9 | % | ||||||
Energy Equipment & Services | 171 | 3.8 | % | ||||||
Health Care Equipment & Supplies | 165 | 3.7 | % | ||||||
IT Services | 162 | 3.6 | % | ||||||
Professional Services | 159 | 3.6 | % | ||||||
Wireless Telecommunication Services | 157 | 3.5 | % | ||||||
Pharmaceuticals | 138 | 3.1 | % | ||||||
Software | 135 | 3.0 | % | ||||||
Food Products | 121 | 2.7 | % | ||||||
Auto Components | 119 | 2.7 | % | ||||||
Capital Markets | 99 | 2.2 | % | ||||||
Electrical Equipment | 92 | 2.1 | % | ||||||
Beverages | 91 | 2.0 | % | ||||||
Communications Equipment | 84 | 1.9 | % | ||||||
Automobiles | 71 | 1.6 | % | ||||||
Consumer Finance | 58 | 1.3 | % | ||||||
Real Estate Investment Trusts | 51 | 1.1 | % | ||||||
Thrifts & Mortgage Finance | 48 | 1.1 | % | ||||||
Semiconductors & Semiconductor Equipment | 47 | 1.0 | % | ||||||
Diversified Financial Services | 46 | 1.0 | % | ||||||
Aerospace & Defense | 45 | 1.0 | % | ||||||
Leisure Equipment & Products | 45 | 1.0 | % | ||||||
Life Sciences Tools & Services | 43 | 1.0 | % | ||||||
Commercial Services & Supplies | 42 | 0.9 | % | ||||||
Hotels, Restaurants & Leisure | 40 | 0.9 | % | ||||||
Road & Rail | 35 | 0.8 | % | ||||||
Biotechnology | 33 | 0.7 | % | ||||||
Electronic Equipment, Instruments & Components | 26 | 0.6 | % | ||||||
Containers & Packaging | 23 | 0.5 | % | ||||||
Short-Term Investments and Other Assets—Net | 95 | 2.1 | % | ||||||
$ | 4,477 | 100.0 | % |
See Notes to Schedule of Investments
106
Schedule of Investments Global Thematic Opportunities Fund
TOP TEN EQUITY HOLDINGS |
Country | Industry | |||||
1 | SanDisk Corp. | United States | Computers & Peripherals | 2.7 | % | |
2 | Boeing Co. | United States | Aerospace & Defense | 2.5 | % | |
3 | Beijing Enterprises Holdings Ltd. | Hong Kong | Industrial Conglomerates | 2.5 | % | |
4 | Google, Inc. Class A | United States | Internet Software & Services | 2.4 | % | |
5 | Pacific Rubiales Energy Corp. | Canada | Oil, Gas & Consumable Fuels | 2.3 | % | |
6 | Franklin Resources, Inc. | United States | Capital Markets | 2.2 | % | |
7 | ACE Hardware Indonesia Tbk | Indonesia | Specialty Retail | 2.2 | % | |
8 | Potash Corp. of Saskatchewan, Inc. | Canada | Chemicals | 2.2 | % | |
9 | Philip Morris International, Inc. | United States | Tobacco | 2.2 | % | |
10 | Roche Holding AG ADR | Switzerland | Pharmaceuticals | 2.2 | % |
Number of Shares | Value† (000's)z | |||
Common Stocks (89.4%) | ||||
Australia (1.0%) | ||||
Treasury Wine Estates Ltd. | 102,500 | $501 | ||
Brazil (2.5%) | ||||
All America Latina Logistica SA | 171,000 | 753 | ||
Randon Participacoes SA, Preference Shares | 100,200 | 523 | ||
1,276 | ||||
Canada (7.7%) | ||||
Cenovus Energy, Inc. | 22,300 | 729 | ||
MEG Energy Corp.* | 26,000 | 944 | ||
Pacific Rubiales Energy Corp. | 46,500 | 1,141 | ||
Potash Corp. of Saskatchewan, Inc. | 26,750 | 1,099 | ||
3,913 | ||||
Chile (1.7%) | ||||
Sociedad Quimica y Minera de Chile SA ADR, B Shares | 14,000 | 863 | ||
China (5.3%) | ||||
Dah Chong Hong Holdings Ltd. | 911,000 | 828 | ||
First Tractor Co. Ltd., H Shares* | 1,263,000 | 964 | ||
Tsingtao Brewery Co. Ltd., H Shares | 166,000 | 892 | ||
2,684 | ||||
France (1.9%) | ||||
CFAO SA | 20,200 | 947 | ||
Hong Kong (5.6%) | ||||
Beijing Enterprises Holdings Ltd. | 191,000 | 1,265 | ||
CNOOC Ltd. ADR | 4,400 | 833 | ||
SA SA International Holdings Ltd. | 1,100,000 | 718 | ||
2,816 | ||||
India (2.0%) | ||||
Mahindra & Mahindra Ltd. | 74,000 | 1,006 | ||
Indonesia (4.1%) | ||||
ACE Hardware Indonesia Tbk | 1,878,500 | 1,123 | ||
Astra International Tbk PT | 1,362,000 | 964 | ||
2,087 | ||||
Israel (1.8%) | ||||
Israel Chemicals Ltd. | 82,000 | 891 | ||
Japan (4.6%) | ||||
FANUC Corp. | 6,100 | 996 | ||
Kubota Corp. | 18,900 | 909 | ||
Mongolian Mining Corp.* | 863,300 | 399 | ||
2,304 | ||||
Malaysia (1.6%) | ||||
Genting Malaysia Berhad | 711,000 | 803 | ||
Netherlands (1.8%) | ||||
Unilever NV | 26,000 | 904 | ||
Philippines (1.5%) | ||||
Energy Development Corp. | 5,472,000 | 778 | ||
Poland (0.8%) | ||||
Warsaw Stock Exchange | 40,900 | 418 | ||
South Africa (1.8%) | ||||
MTN Group Ltd. | 48,000 | 897 | ||
Switzerland (4.0%) | ||||
Novartis AG ADR | 15,800 | 932 | ||
Roche Holding AG ADR | 24,000 | 1,092 | ||
2,024 | ||||
Thailand (1.1%) | ||||
BEC World PCL | 346,500 | 575 | ||
United Kingdom (0.9%) | ||||
Lonrho PLC* | 3,427,500 | 438 | ||
United States (37.7%) | ||||
Adecoagro SA* | 91,000 | 922 | ||
BlackRock, Inc. | 5,975 | 1,054 | ||
Boeing Co. | 17,950 | 1,282 | ||
EMC Corp.* | 37,000 | 973 | ||
Franklin Resources, Inc. | 9,600 | 1,127 | ||
Freeport-McMoRan Copper & Gold, Inc. | 28,550 | 1,031 | ||
Google, Inc. Class A* | 1,760 | 1,206 | ||
Honeywell International, Inc. | 16,000 | 935 | ||
Iconix Brand Group, Inc.* | 29,100 | 544 | ||
Intel Corp. | 43,000 | 1,068 | ||
Invesco Ltd. | 40,000 | 947 | ||
Lazard Ltd. Class A | 34,900 | 994 | ||
Lindsay Corp. | 14,100 | 922 | ||
Microsoft Corp. | 29,800 | 918 | ||
Newmont Mining Corp. | 18,850 | 955 | ||
Philip Morris International, Inc. | 12,300 | 1,098 | ||
Range Resources Corp. | 15,300 | 997 | ||
SanDisk Corp.* | 33,000 | 1,360 | ||
Valmont Industries, Inc. | 5,700 | 723 | ||
19,056 | ||||
Total Common Stocks (Cost $44,878) | 45,181 | |||
Exchange Traded Funds (2.0%) | ||||
Market Vectors Gold Miners ETF (Cost $1,017) | 21,600 | 1,035 |
See Notes to Schedule of Investments
107
Number of Shares | Value† (000's)z | |||
Short-Term Investments (8.4%) | ||||
State Street Institutional Treasury Money Market Fund Institutional Class (Cost $4,233) | 4,233,147 | $ | 4,233 | |
Total Investments## (99.8%) (Cost $50,128) | 50,449 | |||
Cash, receivables and other assets, less liabilities (0.2%) | 90 | |||
Total Net Assets (100.0%) | 50,539 |
See Notes to Schedule of Investments
108
SUMMARY SCHEDULE OF INVESTMENTS BY INDUSTRY GLOBAL THEMATIC OPPORTUNITIES FUND |
Industry | Investments at Value† (000's omitted) | Percentage of Net Assets | |
Machinery | $ 5,037 | 10.0 | % |
Oil, Gas & Consumable Fuels | 4,644 | 9.2 | % |
Capital Markets | 4,122 | 8.2 | % |
Chemicals | 2,853 | 5.6 | % |
Metals & Mining | 2,385 | 4.7 | % |
Computers & Peripherals | 2,333 | 4.6 | % |
Aerospace & Defense | 2,217 | 4.4 | % |
Pharmaceuticals | 2,024 | 4.0 | % |
Automobiles | 1,970 | 3.9 | % |
Specialty Retail | 1,841 | 3.6 | % |
Food Products | 1,826 | 3.6 | % |
Distributors | 1,775 | 3.5 | % |
Industrial Conglomerates | 1,703 | 3.4 | % |
Beverages | 1,393 | 2.8 | % |
Internet Software & Services | 1,206 | 2.4 | % |
Tobacco | 1,098 | 2.2 | % |
Semiconductors & Semiconductor Equipment | 1,068 | 2.1 | % |
Exchange Traded Funds | 1,035 | 2.0 | % |
Software | 918 | 1.8 | % |
Wireless Telecommunication Services | 897 | 1.8 | % |
Hotels, Restaurants & Leisure | 803 | 1.6 | % |
Independent Power Producers & Energy Traders | 778 | 1.5 | % |
Road & Rail | 753 | 1.5 | % |
Media | 575 | 1.1 | % |
Textiles, Apparel & Luxury Goods | 544 | 1.1 | % |
Diversified Financial Services | 418 | 0.8 | % |
Short-Term Investments and Other Assets—Net | 4,323 | 8.6 | % |
$50,539 | 100.0 | % |
See Notes to Schedule of Investments
109
TOP TEN EQUITY HOLDINGS |
1 | Danaher Corp. | 4.8 | % | |
2 | Altera Corp. | 4.6 | % | |
3 | Google, Inc. Class A | 4.5 | % | |
4 | Texas Instruments, Inc. | 4.2 | % | |
5 | Anheuser-Busch InBev NV ADR | 4.0 | % | |
6 | Newfield Exploration Co. | 4.0 | % | |
7 | BG Group PLC | 3.9 | % | |
8 | Progressive Corp. | 3.8 | % | |
9 | Procter & Gamble Co. | 3.5 | % | |
10 | Schlumberger Ltd. | 3.5 | % |
Number of Shares | Value† (000's)z | |||
Common Stocks (97.4%) | ||||
Beverages (6.4%) | ||||
Anheuser-Busch InBev NV ADR | 540,170 | $ | 45,472 | |
Coca-Cola Co. | 713,130 | 26,671 | ||
72,143 | ||||
Capital Markets (5.7%) | ||||
BlackRock, Inc. | 111,805 | 19,719 | ||
Charles Schwab Corp. | 1,476,680 | 19,920 | ||
Lazard Ltd. Class A | 877,100 | 24,989 | ||
64,628 | ||||
Chemicals (1.8%) | ||||
Ecolab, Inc. | 323,800 | 20,733 | ||
Consumer Finance (2.2%) | ||||
American Express Co. | 422,795 | 24,649 | ||
Diversified Financial Services (3.3%) | ||||
CME Group, Inc. | 327,590 | 17,985 | ||
Intercontinental-Exchange, Inc.* | 141,773 | 19,380 | ||
37,365 | ||||
Electronic Equipment, Instruments & Components (2.7%) | ||||
National Instruments Corp. | 1,190,296 | 30,662 | ||
Energy Equipment & Services (6.0%) | ||||
Cameron International Corp.* | 522,050 | 28,562 | ||
Schlumberger Ltd. | 542,930 | 39,297 | ||
67,859 | ||||
Food Products (3.2%) | ||||
McCormick & Co., Inc. | 599,079 | 36,807 | ||
Health Care Equipment & Supplies (6.2%) | ||||
C.R. Bard, Inc. | 346,580 | 34,003 | ||
Covidien PLC | 643,505 | 36,068 | ||
70,071 | ||||
Household Products (3.5%) | ||||
Procter & Gamble Co. | 592,385 | 39,802 | ||
Industrial Conglomerates (8.0%) | ||||
3M Co. | 391,830 | 36,283 | ||
Danaher Corp. | 1,005,124 | 53,845 | ||
90,128 | ||||
Industrial Gases (1.9%) | ||||
Praxair, Inc. | 202,981 | 21,415 | ||
Insurance (3.8%) | ||||
Progressive Corp. | 2,201,600 | 42,997 | ||
Internet Software & Services (4.5%) | ||||
Google, Inc. Class A* | 74,026 | 50,714 | ||
IT Services (1.7%) | ||||
MasterCard, Inc. Class A | 44,270 | 18,722 | ||
Machinery (2.5%) | ||||
Pall Corp. | 509,828 | 28,301 | ||
Media (5.4%) | ||||
Comcast Corp. Class A Special | 681,795 | 22,411 | ||
Scripps Networks Interactive, Inc. Class A | 659,120 | 38,954 | ||
61,365 | ||||
Multiline Retail (3.0%) | ||||
Target Corp. | 527,245 | 33,791 | ||
Oil, Gas & Consumable Fuels (10.0%) | ||||
BG Group PLC | 2,182,604 | 44,638 | ||
Marathon Petroleum Corp. | 455,280 | 23,561 | ||
Newfield Exploration Co.* | 1,381,475 | 45,077 | ||
113,276 | ||||
Pharmaceuticals (3.1%) | ||||
Roche Holding AG | 195,551 | 35,599 | ||
Road & Rail (0.9%) | ||||
J.B. Hunt Transport Services, Inc. | 203,500 | 10,672 | ||
Semiconductors & Semiconductor Equipment (8.8%) | ||||
Altera Corp. | 1,406,124 | 52,491 | ||
Texas Instruments, Inc. | 1,625,150 | 47,194 | ||
99,685 | ||||
Specialty Retail (0.9%) | ||||
Autozone, Inc.* | 29,200 | 10,560 | ||
Trading Companies & Distributors (1.9%) | ||||
W.W. Grainger, Inc. | 104,905 | 21,606 | ||
Total Common Stocks (Cost $879,266) | 1,103,550 | |||
Short-Term Investments (1.8%) | ||||
State Street Institutional Treasury Money Market Fund Institutional Class (Cost $20,365) | 20,365,292 | 20,365 | ||
Total Investments## (99.2%) (Cost $899,631) | 1,123,915 | |||
Cash, receivables and other assets, less liabilities (0.8%) | 9,113 | |||
Total Net Assets (100.0%) | $ | 1,133,028 | ||
See Notes to Schedule of Investments
110
Schedule of Investments International Fund
TOP TEN EQUITY HOLDINGS |
Country | Industry | |||||
1 | Vodafone Group PLC | United Kingdom | Wireless Telecommunication Services | 2.4 | % | |
2 | Jupiter Telecommunications Co. Ltd. | Japan | Media | 2.2 | % | |
3 | Sodexo | France | Hotels, Restaurants & Leisure | 1.9 | % | |
4 | Sulzer AG | Switzerland | Machinery | 1.8 | % | |
5 | TOYOTA MOTOR Corp. | Japan | Automobiles | 1.7 | % | |
6 | Roche Holding AG | Switzerland | Pharmaceuticals | 1.6 | % | |
7 | SGS SA | Switzerland | Professional Services | 1.6 | % | |
8 | Unilever NV | Netherlands | Food Products | 1.5 | % | |
9 | Sundrug Co. Ltd. | Japan | Food & Staples Retailing | 1.5 | % | |
10 | Fresenius Medical Care AG & Co. | Germany | Health Care Providers & Services | 1.5 | % |
Number of Shares | Value† (000's)z | |||
Common Stocks (96.4%) | ||||
Australia (2.0%) | ||||
CSL Ltd. | 54,230 | $2,489 | ||
Iluka Resources Ltd. | 182,080 | 1,731 | ||
Imdex Ltd. | 568,945 | 776 | ||
4,996 | ||||
Belgium (1.9%) | ||||
Anheuser-Busch InBev NV | 26,204 | 2,201 | ||
Colruyt SA | 55,390 | 2,630 | ||
4,831 | ||||
Brazil (0.0%) | ||||
Refinaria de Petroleo Ipiranga SA, Preference SharesÑ*^^ | 19,056 | 9 | ||
Canada (7.9%) | ||||
Cenovus Energy, Inc. | 54,367 | 1,781 | ||
Corus Entertainment, Inc., B Shares | 131,078 | 3,078 | ||
Goldcorp, Inc. | 66,500 | 2,730 | ||
Home Capital Group, Inc. | 37,700 | 1,951 | ||
MacDonald, Dettwiler & Associates Ltd. | 47,220 | 2,833 | ||
New Gold, Inc* | 250,100 | 2,771 | ||
Silver Wheaton Corp. | 76,400 | 2,641 | ||
Vermilion Energy, Inc. | 42,462 | 1,935 | ||
19,720 | ||||
Chile (1.1%) | ||||
Sociedad Quimica y Minera de Chile SA ADR, B Shares | 46,480 | 2,865 | ||
China (1.4%) | ||||
China Liansu Group Holdings Ltd. | 2,518,600 | 1,195 | ||
China Mobile Ltd. ADR | 43,965 | 2,360 | ||
3,555 | ||||
Czech Republic (0.6%) | ||||
Komercni Banka A/S | 7,310 | 1,418 | ||
Denmark (2.8%) | ||||
Novo Nordisk A/S Class B | 16,195 | 2,551 | ||
Sydbank A/S* | 104,970 | 1,788 | ||
Tryg A/S | 44,345 | 2,761 | ||
7,100 | ||||
France (7.6%) | ||||
Alcatel-Lucent* | 1,384,429 | 1,576 | ||
Arkema SA | 34,240 | 2,915 | ||
CFAO SA | 69,230 | 3,246 | ||
Eutelsat Communications SA | 58,238 | 1,790 | ||
Pernod-Ricard SA | 17,550 | 1,891 | ||
Rexel SA | 136,143 | 2,659 | ||
Sodexo | 61,690 | 4,878 | ||
18,955 | ||||
Germany (7.8%) | ||||
Brenntag AG | 26,490 | 3,157 | ||
Continental AG | 13,420 | 1,334 | ||
Deutsche Boerse AG | 51,457 | 2,649 | ||
Deutsche Telekom AG | 168,115 | 2,006 | ||
Fresenius Medical Care AG & Co. | 52,558 | 3,790 | ||
Gerresheimer AG* | 38,865 | 1,950 | ||
Linde AG | 21,264 | 3,350 | ||
NORMA Group | 51,920 | 1,308 | ||
19,544 | ||||
Indonesia (0.5%) | ||||
PT Bank Mandiri (Persero) Tbk | 1,503,200 | 1,230 | ||
Ireland (0.6%) | ||||
DCC PLC | 60,226 | 1,572 | ||
Israel (0.7%) | ||||
Bezeq Israeli Telecommunication Corp. Ltd. | 408,400 | 466 | ||
Check Point Software Technologies Ltd.* | 25,500 | 1,176 | ||
1,642 | ||||
Japan (14.9%) | ||||
BRIDGESTONE Corp. | 78,200 | 1,813 | ||
FANUC Corp. | 11,900 | 1,944 | ||
Jupiter Telecommunications Co. Ltd. | 5,342 | 5,451 | ||
KANSAI PAINT Co. Ltd. | 257,500 | 2,595 | ||
Kenedix Realty Investment Corp. | 676 | 2,219 | ||
KEYENCE Corp. | 7,300 | 1,923 | ||
Nihon Kohden Corp. | 102,800 | 3,485 | ||
PIGEON Corp. | 41,300 | 1,944 | ||
SMC Corp. | 13,500 | 2,119 | ||
SOFTBANK Corp. | 83,000 | 3,382 | ||
SUGI HOLDINGS Co. Ltd. | 64,700 | 2,263 | ||
Sundrug Co. Ltd. | 106,000 | 3,854 | ||
TOYOTA MOTOR Corp. | 109,000 | 4,309 | ||
37,301 | ||||
Korea (2.9%) | ||||
Hyundai Mobis | 9,702 | 2,629 | ||
Samsung Electronics Co. Ltd. | 2,584 | 2,808 | ||
Shinhan Financial Group Co. Ltd. | 60,365 | 1,878 | ||
7,315 |
See Notes to Schedule of Investments
111
Number of Shares | Value† (000's)z | |||
Netherlands (5.5%) | ||||
Akzo Nobel NV | 48,561 | $ | 2,799 | |
Koninklijke Ahold NV | 213,779 | 2,643 | ||
Nutreco NV | 41,469 | 3,031 | ||
Royal Imtech NV | 50,895 | 1,316 | ||
Unilever NV | 110,551 | 3,856 | ||
13,645 | ||||
Nigeria (0.7%) | ||||
Afren PLC* | 894,800 | 1,830 | ||
Norway (1.9%) | ||||
DnB ASA | 195,850 | 2,251 | ||
Norwegian Property ASA | 167,200 | 242 | ||
ProSafe SE | 300,415 | 2,295 | ||
4,788 | ||||
Russia (0.7%) | ||||
NovaTek OAO GDR | 13,745 | 1,640 | ||
Singapore (1.0%) | ||||
United Overseas Bank Ltd. | 168,000 | 2,573 | ||
Sweden (2.9%) | ||||
Axfood AB | 32,175 | 1,137 | ||
Elekta AB, B Shares | 49,270 | 2,511 | ||
Nordea Bank AB | 126,285 | 1,168 | ||
Telefonaktiebolaget LM Ericsson, B Shares | 251,805 | 2,358 | ||
7,174 | ||||
Switzerland (10.9%) | ||||
Bucher Industries AG | 14,064 | 2,357 | ||
Givaudan SA* | 3,300 | 3,114 | ||
Nestle SA | 47,157 | 2,931 | ||
Novartis AG | 41,396 | 2,439 | ||
Partners Group Holding AG | 6,945 | 1,337 | ||
Roche Holding AG | 22,493 | 4,095 | ||
SGS SA | 1,991 | 4,017 | ||
Sika AG | 1,248 | 2,412 | ||
Sulzer AG | 33,346 | 4,509 | ||
27,211 | ||||
Turkey (0.5%) | ||||
Sinpas Gayrimenkul Yatirim Ortakligi A/S | 1,679,761 | 1,191 | ||
United Kingdom (19.6%) | ||||
Amlin PLC | 533,907 | 3,269 | ||
BG Group PLC | 107,510 | 2,199 | ||
BHP Billiton PLC | 84,350 | 2,459 | ||
Bunzl PLC | 183,249 | 3,270 | ||
Cairn Energy PLC* | 334,910 | 1,526 | ||
Diploma PLC | 227,710 | 1,545 | ||
Experian PLC | 167,308 | 2,667 | ||
Fidessa Group PLC | 49,504 | 1,126 | ||
ICAP PLC | 360,140 | 1,817 | ||
Informa PLC | 277,221 | 1,791 | ||
Mitie Group PLC | 657,592 | 2,985 | ||
Petrofac Ltd. | 82,265 | 1,962 | ||
Reed Elsevier PLC | 281,973 | 2,644 | ||
RPS Group PLC | 679,106 | 2,617 | ||
Subsea 7 SA | 115,843 | 2,663 | ||
Synergy Health PLCÑ | 189,358 | 2,650 | ||
Tullow Oil PLC | 114,356 | 2,475 | ||
Vodafone Group PLC | 2,040,531 | 5,881 | ||
Willis Group Holdings PLC | 96,500 | 3,601 | ||
49,147 | ||||
Total Common Stocks (Cost $207,946) | 241,252 | |||
Rights (0.0%) | ||||
Belgium (0.0%) | ||||
Anheuser-Busch InBev VVPR StripÑ* (Cost $0) | 177,256 | 0 | ||
Short-Term Investments (3.4%) | ||||
State Street Institutional Treasury Money Market Fund Institutional Class (Cost $8,453) | 8,452,618 | 8,453 | ||
Total Investments## (99.8%) (Cost $216,399) | 249,705 | |||
Cash, receivables and other assets, less liabilities (0.2%) | 480 | |||
Total Net Assets (100.0%) | $ | 250,185 |
See Notes to Schedule of Investments
112
SUMMARY SCHEDULE OF INVESTMENTS BY INDUSTRY INTERNATIONAL FUND |
Investments at Value† (000's omitted) | Percentage of Net Assets | ||
Industry | |||
Chemicals | $ 20,050 | 8.0% | |
Media | 14,754 | 5.9% | |
Oil, Gas & Consumable Fuels | 13,395 | 5.4% | |
Metals & Mining | 13,108 | 5.2% | |
Food & Staples Retailing | 12,527 | 5.0% | |
Commercial Banks | 12,306 | 4.9% | |
Machinery | 12,237 | 4.9% | |
Wireless Telecommunication Services | 11,623 | 4.6% | |
Food Products | 9,818 | 3.9% | |
Insurance | 9,631 | 3.8% | |
Trading Companies & Distributors | 9,086 | 3.6% | |
Pharmaceuticals | 9,085 | 3.6% | |
Energy Equipment & Services | 6,920 | 2.8% | |
Professional Services | 6,684 | 2.7% | |
Health Care Providers & Services | 6,440 | 2.6% | |
Health Care Equipment & Supplies | 5,996 | 2.4% | |
Auto Components | 5,776 | 2.3% | |
Commercial Services & Supplies | 5,602 | 2.2% | |
Software | 5,135 | 2.1% | |
Hotels, Restaurants & Leisure | 4,878 | 1.9% | |
Automobiles | 4,309 | 1.7% | |
Beverages | 4,092 | 1.6% | |
Communications Equipment | 3,934 | 1.6% | |
Electronic Equipment, Instruments & Components | 3,468 | 1.4% | |
Real Estate Investment Trusts | 3,410 | 1.4% | |
Distributors | 3,246 | 1.3% | |
Capital Markets | 3,154 | 1.3% | |
Semiconductors & Semiconductor Equipment | 2,808 | 1.1% | |
Diversified Financial Services | 2,649 | 1.1% | |
Biotechnology | 2,489 | 1.0% | |
Diversified Telecommunication Services | 2,472 | 1.0% | |
Thrifts & Mortgage Finance | 1,951 | 0.8% | |
Life Sciences Tools & Services | 1,950 | 0.8% | |
Household Products | 1,944 | 0.8% | |
Industrial Conglomerates | 1,572 | 0.6% | |
Construction & Engineering | 1,316 | 0.5% | |
Building Products | 1,195 | 0.5% | |
Real Estate Management & Development | 242 | 0.1% | |
Short-Term Investments and Other Assets—Net | 8,933 | 3.6% | |
$250,185 | 100.0% |
See Notes to Schedule of Investments
113
Schedule of Investments International Institutional Fund
TOP TEN EQUITY HOLDINGS |
Country | Industry | ||||||||||||||||||||||||||
1 | Vodafone Group PLC | United Kingdom | Wireless Telecommunication Services | 2.4 | % | ||||||||||||||||||||||
2 | Jupiter Telecommunications Co. Ltd. | Japan | Media | 2.2 | % | ||||||||||||||||||||||
3 | Sodexo | France | Hotels, Restaurants & Leisure | 2.0 | % | ||||||||||||||||||||||
4 | Sulzer AG | Switzerland | Machinery | 1.8 | % | ||||||||||||||||||||||
5 | TOYOTA MOTOR Corp. | Japan | Automobiles | 1.7 | % | ||||||||||||||||||||||
6 | Roche Holding AG | Switzerland | Pharmaceuticals | 1.6 | % | ||||||||||||||||||||||
7 | SGS SA | Switzerland | Professional Services | 1.6 | % | ||||||||||||||||||||||
8 | Sundrug Co. Ltd. | Japan | Food & Staples Retailing | 1.5 | % | ||||||||||||||||||||||
9 | Unilever NV | Netherlands | Food Products | 1.5 | % | ||||||||||||||||||||||
10 | Fresenius Medical Care AG & Co. | Germany | Health Care Providers & Services | 1.5 | % |
Number of Shares | Value† (000's)z | ||
Common Stocks (96.8%) | |||
Australia (2.0%) | |||
CSL Ltd. | 106,700 | $4,898 | |
Iluka Resources Ltd. | 357,530 | 3,398 | |
Imdex Ltd. | 1,121,855 | 1,530 | |
9,826 | |||
Belgium (1.9%) | |||
Anheuser-Busch InBev NV | 51,671 | 4,340 | |
Colruyt SA | 109,220 | 5,185 | |
9,525 | |||
Canada (7.9%) | |||
Cenovus Energy, Inc. | 107,264 | 3,515 | |
Corus Entertainment, Inc., B Shares | 258,418 | 6,069 | |
Goldcorp, Inc. | 131,200 | 5,386 | |
Home Capital Group, Inc. | 74,300 | 3,844 | |
MacDonald, Dettwiler & Associates Ltd. | 93,227 | 5,594 | |
New Gold, Inc* | 493,100 | 5,463 | |
Silver Wheaton Corp. | 150,700 | 5,210 | |
Vermilion Energy, Inc. | 83,582 | 3,808 | |
38,889 | |||
Chile (1.2%) | |||
Sociedad Quimica y Minera de Chile SA ADR, B Shares | 91,605 | 5,646 | |
China (1.4%) | |||
China Liansu Group Holdings Ltd. | 4,965,600 | 2,356 | |
China Mobile Ltd. ADR | 86,770 | 4,659 | |
7,015 | |||
Czech Republic (0.6%) | |||
Komercni Banka A/S | 14,420 | 2,798 | |
Denmark (2.9%) | |||
Novo Nordisk A/S Class B | 31,930 | 5,029 | |
Sydbank A/S* | 206,981 | 3,525 | |
Tryg A/S | 87,442 | 5,445 | |
13,999 | |||
France (7.6%) | |||
Alcatel-Lucent* | 2,729,841 | 3,107 | |
Arkema SA | 67,515 | 5,747 | |
CFAO SA | 136,510 | 6,401 | |
Eutelsat Communications SA | 114,833 | 3,530 | |
Pernod-Ricard SA | 34,605 | 5,729 | |
Rexel SA | 268,448 | 5,242 | |
Sodexo | 121,635 | 9,619 | |
37,375 | |||
Germany (7.8%) | |||
Brenntag AG | 52,230 | 6,224 | |
Continental AG | 26,460 | 2,631 | |
Deutsche Boerse AG | 101,465 | 5,224 | |
Deutsche Telekom AG | 331,490 | 3,955 | |
Fresenius Medical Care AG & Co. | 103,637 | 7,473 | |
Gerresheimer AG* | 76,638 | 3,845 | |
Linde AG | 41,930 | 6,606 | |
NORMA GroupÑ | 102,376 | 2,580 | |
38,538 | |||
Indonesia (0.5%) | |||
PT Bank Mandiri (Persero) Tbk | 2,963,800 | 2,424 | |
Ireland (0.6%) | |||
DCC PLC | 119,961 | 3,131 | |
Israel (0.7%) | |||
Bezeq Israeli Telecommunication Corp. Ltd. | 822,519 | 939 | |
Check Point Software Technologies Ltd.* | 50,500 | 2,328 | |
3,267 | |||
Japan (15.0%) | |||
BRIDGESTONE Corp. | 154,300 | 3,577 | |
FANUC Corp. | 23,100 | 3,774 | |
Jupiter Telecommunications Co. Ltd.Ñ | 10,542 | 10,758 | |
KANSAI PAINT Co. Ltd. | 507,100 | 5,110 | |
Kenedix Realty Investment Corp. | 1,332 | 4,372 | |
KEYENCE Corp. | 14,400 | 3,792 | |
Nihon Kohden Corp. | 201,900 | 6,844 | |
PIGEON Corp. | 81,500 | 3,836 | |
SMC Corp. | 26,700 | 4,191 | |
SOFTBANK Corp. | 163,700 | 6,670 | |
SUGI HOLDINGS Co. Ltd. | 127,600 | 4,464 | |
Sundrug Co. Ltd. | 209,100 | 7,603 | |
TOYOTA MOTOR Corp. | 214,800 | 8,491 | |
73,482 | |||
Korea (2.9%) | |||
Hyundai Mobis | 19,135 | 5,186 | |
Samsung Electronics Co. Ltd. | 5,101 | 5,543 | |
Shinhan Financial Group Co. Ltd. | 119,030 | 3,703 | |
14,432 | |||
Netherlands (5.5%) | |||
Akzo Nobel NV | 95,753 | 5,519 | |
Koninklijke Ahold NV | 421,536 | 5,212 | |
Nutreco NV | 81,747 | 5,976 | |
See Notes to Schedule of Investments
114
Number of Shares | Value† (000's)z | ||
Royal Imtech NV | 100,355 | $ | 2,595 |
Unilever NV | 217,990 | 7,603 | |
26,905 | |||
Nigeria (0.7%) | |||
Afren PLC* | 1,750,400 | 3,580 | |
Norway (1.9%) | |||
DnB ASA | 386,179 | 4,438 | |
Norwegian Property ASA | 283,475 | 409 | |
ProSafe SE | 592,360 | 4,526 | |
9,373 | |||
Russia (0.7%) | |||
NovaTek OAO GDR | 27,105 | 3,234 | |
Singapore (1.0%) | |||
United Overseas Bank Ltd. | 332,000 | 5,085 | |
Sweden (2.9%) | |||
Axfood AB | 63,445 | 2,242 | |
Elekta AB, B Shares | 97,147 | 4,951 | |
Nordea Bank AB | 249,015 | 2,303 | |
Telefonaktiebolaget LM Ericsson, B Shares | 496,510 | 4,649 | |
14,145 | |||
Switzerland (10.9%) | |||
Bucher Industries AG | 27,733 | 4,648 | |
Givaudan SA* | 6,501 | 6,135 | |
Nestle SA | 92,986 | 5,781 | |
Novartis AG | 81,626 | 4,809 | |
Partners Group Holding AG | 13,700 | 2,638 | |
Roche Holding AG | 44,354 | 8,075 | |
SGS SA | 3,924 | 7,916 | |
Sika AG | 2,458 | 4,750 | |
Sulzer AG | 65,752 | 8,891 | |
53,643 | |||
Turkey (0.5%) | |||
Sinpas Gayrimenkul Yatirim Ortakligi A/S | 3,312,181 | 2,349 | |
United Kingdom (19.7%) | |||
Amlin PLC | 1,052,768 | 6,446 | |
BG Group PLC | 211,990 | 4,335 | |
BHP Billiton PLC | 166,320 | 4,849 | |
Bunzl PLC | 361,335 | 6,449 | |
Cairn Energy PLC* | 660,380 | 3,009 | |
Diploma PLC | 449,000 | 3,046 | |
Experian PLC | 329,902 | 5,259 | |
Fidessa Group PLC | 97,615 | 2,220 | |
ICAP PLC | 710,125 | 3,582 | |
Informa PLC | 546,623 | 3,531 | |
Mitie Group PLCÑ | 1,296,127 | 5,884 | |
Petrofac Ltd. | 162,210 | 3,869 | |
Reed Elsevier PLC | 556,001 | 5,213 | |
RPS Group PLCÑ | 1,339,066 | 5,160 | |
Subsea 7 SA | 228,424 | 5,250 | |
Synergy Health PLCÑ | 373,375 | 5,226 | |
Tullow Oil PLC | 225,487 | 4,880 | |
Vodafone Group PLC | 4,026,386 | 11,604 | |
Willis Group Holdings PLC | 190,300 | 7,102 | |
96,914 | |||
Total Common Stocks (Cost $452,629) | 475,575 | ||
Rights (0.0%) | |||
Belgium (0.0%) | |||
Anheuser-Busch InBev VVPR Strip* (Cost $0) | 125,976 | 0 | |
Short-Term Investments (2.0%) | |||
State Street Institutional Treasury Money Market Fund Institutional Class (Cost $9,944) | 9,943,707 | 9,944 | |
Total Investments## (98.8%) (Cost $462,573) | 485,519 | ||
Cash, receivables and other assets, less liabilities (1.2%) | 6,047 | ||
Total Net Assets (100.0%) | $491,566 |
See Notes to Schedule of Investments
115
SUMMARY SCHEDULE OF INVESTMENTS BY INDUSTRY INTERNATIONAL INSTITUTIONAL FUND |
Industry | Investments at Value† (000's omitted) | Percentage of Net Assets | |||||||
Chemicals | $39,513 | 8.0 | % | ||||||
Media | 29,101 | 5.9 | % | ||||||
Oil, Gas & Consumable Fuels | 26,361 | 5.4 | % | ||||||
Metals & Mining | 25,836 | 5.3 | % | ||||||
Food & Staples Retailing | 24,706 | 5.0 | % | ||||||
Commercial Banks | 24,276 | 4.9 | % | ||||||
Machinery | 24,084 | 4.9 | % | ||||||
Wireless Telecommunication Services | 22,933 | 4.7 | % | ||||||
Food Products | 19,360 | 3.9 | % | ||||||
Insurance | 18,993 | 3.9 | % | ||||||
Trading Companies & Distributors | 17,915 | 3.6 | % | ||||||
Pharmaceuticals | 17,913 | 3.6 | % | ||||||
Energy Equipment & Services | 13,645 | 2.8 | % | ||||||
Professional Services | 13,175 | 2.7 | % | ||||||
Health Care Providers & Services | 12,699 | 2.6 | % | ||||||
Health Care Equipment & Supplies | 11,795 | 2.4 | % | ||||||
Auto Components | 11,394 | 2.3 | % | ||||||
Commercial Services & Supplies | 11,044 | 2.2 | % | ||||||
Software | 10,142 | 2.1 | % | ||||||
Hotels, Restaurants & Leisure | 9,619 | 2.0 | % | ||||||
Automobiles | 8,491 | 1.7 | % | ||||||
Beverages | 8,069 | 1.6 | % | ||||||
Communications Equipment | 7,756 | 1.6 | % | ||||||
Electronic Equipment, Instruments & Components | 6,838 | 1.4 | % | ||||||
Real Estate Investment Trusts | 6,721 | 1.4 | % | ||||||
Distributors | 6,401 | 1.3 | % | ||||||
Capital Markets | 6,220 | 1.3 | % | ||||||
Semiconductors & Semiconductor Equipment | 5,543 | 1.1 | % | ||||||
Diversified Financial Services | 5,224 | 1.1 | % | ||||||
Biotechnology | 4,898 | 1.0 | % | ||||||
Diversified Telecommunication Services | 4,894 | 1.0 | % | ||||||
Life Sciences Tools & Services | 3,845 | 0.8 | % | ||||||
Thrifts & Mortgage Finance | 3,844 | 0.8 | % | ||||||
Household Products | 3,836 | 0.8 | % | ||||||
Industrial Conglomerates | 3,131 | 0.6 | % | ||||||
Construction & Engineering | 2,595 | 0.5 | % | ||||||
Building Products | 2,356 | 0.5 | % | ||||||
Real Estate Management & Development | 409 | 0.1 | % | ||||||
Short-Term Investments and Other Assets—Net | 15,991 | 3.2 | % | ||||||
$491,566 | 100.0 | % |
See Notes to Schedule of Investments
116
Schedule of Investments International Large Cap Fund
TOP TEN EQUITY HOLDINGS |
Country | Industry | ||||||||||||||||||||||||
1 | Vodafone Group PLC | United Kingdom | Wireless Telecommunication Services | 2.5 | % | ||||||||||||||||||||
2 | Jupiter Telecommunications Co. Ltd. | Japan | Media | 2.4 | % | ||||||||||||||||||||
3 | SGS SA | Switzerland | Professional Services | 2.4 | % | ||||||||||||||||||||
4 | Roche Holding AG | Switzerland | Pharmaceuticals | 2.1 | % | ||||||||||||||||||||
5 | Sulzer AG | Switzerland | Machinery | 2.1 | % | ||||||||||||||||||||
6 | Sodexo | France | Hotels, Restaurants & Leisure | 2.1 | % | ||||||||||||||||||||
7 | Unilever NV | Netherlands | Food Products | 2.0 | % | ||||||||||||||||||||
8 | Fresenius Medical Care AG & Co. | Germany | Health Care Providers & Services | 1.9 | % | ||||||||||||||||||||
9 | Experian PLC | United Kingdom | Professional Services | 1.9 | % | ||||||||||||||||||||
10 | Givaudan SA | Switzerland | Chemicals | 1.8 | % |
Number of Shares | Value† (000's)z | ||
Common Stocks (98.8%) | |||
Australia (1.7%) | |||
CSL Ltd. | 43,990 | $2,019 | |
Iluka Resources Ltd. | 147,365 | 1,401 | |
3,420 | |||
Belgium (2.7%) | |||
Anheuser-Busch InBev NV | 32,622 | 2,740 | |
Colruyt SA | 56,920 | 2,702 | |
5,442 | |||
Canada (5.9%) | |||
Bank of Nova Scotia | 28,300 | 1,500 | |
Cenovus Energy, Inc. | 42,884 | 1,405 | |
Goldcorp, Inc. | 55,000 | 2,258 | |
New Gold, Inc* | 207,000 | 2,293 | |
Silver Wheaton Corp. | 63,900 | 2,209 | |
Vermilion Energy, Inc. | 44,018 | 2,006 | |
11,671 | |||
Chile (1.2%) | |||
Sociedad Quimica y Minera de Chile SA ADR, B Shares | 38,545 | 2,376 | |
China (1.2%) | |||
China Mobile Ltd. ADR | 46,215 | 2,481 | |
Colombia (0.7%) | |||
Ecopetrol SA ADR | 23,800 | 1,377 | |
Czech Republic (0.6%) | |||
Komercni Banka A/S | 6,055 | 1,175 | |
Denmark (3.7%) | |||
Jyske Bank A/S* | 61,295 | 1,753 | |
Novo Nordisk A/S Class B | 16,533 | 2,604 | |
Tryg A/S | 47,210 | 2,940 | |
7,297 | |||
France (8.6%) | |||
Alcatel-Lucent* | 1,269,103 | 1,445 | |
Arkema SA | 27,720 | 2,360 | |
Eutelsat Communications SA | 63,321 | 1,947 | |
Pernod-Ricard SA | 14,310 | 1,542 | |
Rexel SA | 138,188 | 2,698 | |
Schneider Electric SA | 45,939 | 2,901 | |
Sodexo | 52,290 | 4,135 | |
17,028 | |||
Germany (9.3%) | |||
Brenntag AG | 21,415 | 2,552 | |
Continental AG | 16,375 | 1,628 | |
Deutsche Boerse AG | 57,102 | 2,940 | |
Deutsche Telekom AG | 176,625 | 2,107 | |
Fresenius Medical Care AG & Co. | 52,715 | 3,801 | |
Linde AG | 18,525 | 2,919 | |
SAP AG ADR | 37,985 | 2,494 | |
18,441 | |||
Indonesia (0.5%) | |||
PT Bank Mandiri (Persero) Tbk | 1,239,800 | 1,014 | |
Israel (1.0%) | |||
Bezeq Israeli Telecommunication Corp. Ltd. | 498,600 | 569 | |
Check Point Software Technologies Ltd.* | 31,100 | 1,434 | |
2,003 | |||
Japan (10.8%) | |||
BRIDGESTONE Corp. | 86,400 | 2,003 | |
FANUC Corp. | 9,700 | 1,585 | |
Jupiter Telecommunications Co. Ltd. | 4,751 | 4,848 | |
KANSAI PAINT Co. Ltd. | 213,500 | 2,152 | |
KEYENCE Corp. | 6,000 | 1,580 | |
SMC Corp. | 14,300 | 2,245 | |
SOFTBANK Corp. | 85,300 | 3,475 | |
TOYOTA MOTOR Corp. | 89,200 | 3,526 | |
21,414 | |||
Korea (3.8%) | |||
Hyundai Mobis | 9,951 | 2,697 | |
Samsung Electronics Co. Ltd. | 2,949 | 3,205 | |
Shinhan Financial Group Co. Ltd. | 50,205 | 1,562 | |
7,464 | |||
Netherlands (5.8%) | |||
Akzo Nobel NV | 50,331 | 2,901 | |
Koninklijke Ahold NV | 222,645 | 2,753 | |
Royal Imtech NV | 73,930 | 1,912 | |
Unilever NV | 111,835 | 3,900 | |
11,466 | |||
Norway (0.9%) | |||
DnB ASA | 163,173 | 1,875 | |
Russia (0.7%) | |||
NovaTek OAO GDR | 11,010 | 1,313 | |
Singapore (1.1%) | |||
United Overseas Bank Ltd. | 138,000 | 2,113 | |
Sweden (3.3%) | |||
Elekta AB, B Shares | 51,085 | 2,604 | |
Nordea Bank AB | 164,070 | 1,518 | |
Telefonaktiebolaget LM Ericsson, B Shares | 258,315 | 2,418 | |
6,540 | |||
Switzerland (13.5%) | |||
Credit Suisse Group AG* | 51,979 | 1,004 | |
Givaudan SA* | 3,881 | 3,663 |
See Notes to Schedule of Investments
117
Number of Shares | Value† (000's)z | |||
Nestle SA | 49,598 | $3,083 | ||
Novartis AG | 43,356 | 2,554 | ||
Partners Group Holding AG | 5,600 | 1,078 | ||
Roche Holding AG | 22,911 | 4,171 | ||
SGS SA | 2,362 | 4,765 | ||
Sika AG | 1,261 | 2,437 | ||
Sulzer AG | 30,746 | 4,158 | ||
26,913 | ||||
United Kingdom (21.8%) | ||||
Amlin PLC | 519,411 | 3,180 | ||
BG Group PLC | 110,510 | 2,260 | ||
BHP Billiton PLC | 68,290 | 1,991 | ||
Bunzl PLC | 178,043 | 3,178 | ||
Cairn Energy PLC* | 271,940 | 1,239 | ||
Experian PLC | 235,881 | 3,760 | ||
ICAP PLC | 386,790 | 1,951 | ||
Informa PLC | 393,889 | 2,544 | ||
Petrofac Ltd. | 90,280 | 2,153 | ||
Reed Elsevier PLC | 306,930 | 2,878 | ||
Sage Group PLC | 497,420 | 2,340 | ||
Subsea 7 SA | 119,675 | 2,751 | ||
Tesco PLC | 485,644 | 2,596 | ||
Tullow Oil PLC | 127,231 | 2,754 | ||
Vodafone Group PLC | 1,728,407 | 4,981 | ||
Willis Group Holdings PLC | 76,000 | 2,836 | ||
43,392 | ||||
Total Common Stocks (Cost $180,657) | 196,215 | |||
Rights (0.0%) | ||||
Belgium (0.0%) | ||||
Anheuser-Busch InBev VVPR Strip* (Cost $0) | 63,890 | 0 | ||
Short-Term Investments (2.6%) | ||||
State Street Institutional Treasury Money Market Fund Institutional Class (Cost $5,151) | 5,151,226 | 5,151 | ||
Total Investments## (101.4%) (Cost $185,808) | 201,366 | |||
Liabilities, less cash, receivables and other assets [(1.4%)] | (2,760 | ) | ||
Total Net Assets (100.0%) | $198,606 | |||
See Notes to Schedule of Investments
118
SUMMARY SCHEDULE OF INVESTMENTS BY INDUSTRY INTERNATIONAL LARGE CAP FUND |
Industry | Investments at Value† (000's omitted) | Percentage of Net Assets | |||||||
Chemicals | $18,808 | 9.5 | % | ||||||
Commercial Banks | 12,510 | 6.3 | % | ||||||
Oil, Gas & Consumable Fuels | 12,354 | 6.2 | % | ||||||
Media | 12,217 | 6.2 | % | ||||||
Wireless Telecommunication Services | 10,937 | 5.5 | % | ||||||
Metals & Mining | 10,152 | 5.1 | % | ||||||
Pharmaceuticals | 9,329 | 4.7 | % | ||||||
Insurance | 8,956 | 4.5 | % | ||||||
Professional Services | 8,525 | 4.3 | % | ||||||
Trading Companies & Distributors | 8,428 | 4.2 | % | ||||||
Food & Staples Retailing | 8,051 | 4.1 | % | ||||||
Machinery | 7,988 | 4.0 | % | ||||||
Food Products | 6,983 | 3.5 | % | ||||||
Auto Components | 6,328 | 3.2 | % | ||||||
Software | 6,268 | 3.1 | % | ||||||
Energy Equipment & Services | 4,904 | 2.5 | % | ||||||
Beverages | 4,282 | 2.2 | % | ||||||
Hotels, Restaurants & Leisure | 4,135 | 2.1 | % | ||||||
Capital Markets | 4,033 | 2.0 | % | ||||||
Communications Equipment | 3,863 | 1.9 | % | ||||||
Health Care Providers & Services | 3,801 | 1.9 | % | ||||||
Automobiles | 3,526 | 1.8 | % | ||||||
Semiconductors & Semiconductor Equipment | 3,205 | 1.6 | % | ||||||
Diversified Financial Services | 2,940 | 1.5 | % | ||||||
Electrical Equipment | 2,901 | 1.5 | % | ||||||
Diversified Telecommunication Services | 2,676 | 1.3 | % | ||||||
Health Care Equipment & Supplies | 2,604 | 1.3 | % | ||||||
Biotechnology | 2,019 | 1.0 | % | ||||||
Construction & Engineering | 1,912 | 1.0 | % | ||||||
Electronic Equipment, Instruments & Components | 1,580 | 0.8 | % | ||||||
Short-Term Investments and Other Assets—Net | 2,391 | 1.2 | % | ||||||
$198,606 | 100.0 | % |
See Notes to Schedule of Investments
119
Schedule of Investments Intrinsic Value Fund
TOP TEN EQUITY HOLDINGS |
1 | Lender Processing Services, Inc. | 2.8 | % | ||||||
2 | CoreLogic, Inc. | 2.5 | % | ||||||
3 | OfficeMax, Inc. | 2.4 | % | ||||||
4 | Constellation Brands, Inc. Class A | 2.3 | % | ||||||
5 | Charles River Laboratories International, Inc. | 2.1 | % | ||||||
6 | Avery Dennison Corp. | 2.1 | % | ||||||
7 | Crown Holdings, Inc. | 2.1 | % | ||||||
8 | Brocade Communications Systems, Inc. | 2.0 | % | ||||||
9 | KBR, Inc. | 1.9 | % | ||||||
10 | Acxiom Corp. | 1.9 | % |
Number of Shares | Value† (000's)z | ||
Common Stocks (95.3%) | |||
Aerospace & Defense (6.8%) | |||
Aerovironment, Inc.* | 30,800 | $735 | |
Ceradyne, Inc. | 71,655 | 1,702 | |
Spirit Aerosystems Holdings, Inc. Class A* | 103,600 | 2,576 | |
Teledyne Technologies, Inc.* | 40,352 | 2,603 | |
Textron, Inc. | 93,839 | 2,507 | |
10,123 | |||
Beverages (2.3%) | |||
Constellation Brands, Inc. Class A* | 106,136 | 3,496 | |
Chemicals (2.7%) | |||
Chemtura Corp.* | 150,100 | 2,481 | |
Cytec Industries, Inc. | 23,400 | 1,602 | |
4,083 | |||
Commercial Banks (11.0%) | |||
BankUnited, Inc. | 62,000 | 1,565 | |
City National Corp. | 15,200 | 780 | |
Comerica, Inc. | 76,874 | 2,361 | |
First Niagara Financial Group, Inc. | 277,200 | 2,187 | |
Huntington Bancshares, Inc. | 369,500 | 2,439 | |
TCF Financial Corp. | 232,100 | 2,581 | |
Texas Capital Bancshares, Inc.* | 52,300 | 2,407 | |
Umpqua Holdings Corp. | 167,400 | 2,116 | |
16,436 | |||
Commercial Services & Supplies (4.0%) | |||
Avery Dennison Corp. | 102,236 | 3,193 | |
Covanta Holding Corp. | 163,900 | 2,803 | |
5,996 | |||
Communications Equipment (6.6%) | |||
Arris Group, Inc.* | 202,269 | 2,757 | |
Brocade Communications Systems, Inc.* | 518,459 | 3,007 | |
Ciena Corp.* | 91,383 | 1,249 | |
Infinera Corp.* | 281,400 | 1,598 | |
Sierra Wireless, Inc.* | 150,074 | 1,303 | |
9,914 | |||
Construction & Engineering (1.9%) | |||
KBR, Inc. | 107,200 | 2,904 | |
Containers & Packaging (3.6%) | |||
Crown Holdings, Inc.* | 88,000 | 3,190 | |
Sealed Air Corp. | 152,258 | 2,173 | |
5,363 | |||
Electronic Equipment, Instruments & Components (3.9%) | |||
CTS Corp. | 119,755 | 1,180 | |
Dolby Laboratories, Inc. Class A* | 56,600 | 1,878 | |
Itron, Inc.* | 48,120 | 2,086 | |
Mercury Computer Systems, Inc.* | 68,260 | 666 | |
5,810 | |||
Energy Equipment & Services (2.5%) | |||
ION Geophysical Corp.* | 261,517 | 1,708 | |
TETRA Technologies, Inc.* | 321,392 | 2,060 | |
3,768 | |||
Health Care Equipment & Supplies (0.8%) | |||
Symmetry Medical, Inc.* | 134,400 | 1,251 | |
Health Care Providers & Services (0.9%) | |||
Chemed Corp. | 21,225 | 1,402 | |
Health Care Technology (0.5%) | |||
Allscripts Healthcare Solutions, Inc.* | 73,900 | 776 | |
Hotels, Restaurants & Leisure (2.3%) | |||
Scientific Games Corp. Class A* | 281,714 | 2,065 | |
Wendy's Co. | 323,000 | 1,379 | |
3,444 | |||
Independent Power Producers & Energy Traders (2.7%) | |||
GenOn Energy, Inc.* | 785,900 | 1,988 | |
Ormat Technologies, Inc. | 106,256 | 2,018 | |
4,006 | |||
Internet Software & Services (2.2%) | |||
Digital River, Inc.* | 162,163 | 2,702 | |
Keynote Systems, Inc. | 46,296 | 608 | |
3,310 | |||
IT Services (10.7%) | |||
Acxiom Corp.* | 165,200 | 2,818 | |
Convergys Corp. | 172,900 | 2,682 | |
CoreLogic, Inc.* | 152,311 | 3,747 | |
DST Systems, Inc. | 49,019 | 2,494 | |
Lender Processing Services, Inc. | 149,100 | 4,185 | |
15,926 | |||
Life Sciences Tools & Services (4.1%) | |||
Affymetrix, Inc.* | 264,600 | 1,008 | |
Cambrex Corp.* | 152,538 | 1,858 | |
Charles River Laboratories International, Inc.* | 88,271 | 3,206 | |
6,072 | |||
Machinery (6.7%) | |||
ESCO Technologies, Inc. | 70,685 | 2,504 | |
ITT Corp. | 83,400 | 1,660 | |
Manitowoc Co., Inc. | 115,700 | 1,490 | |
Navistar International Corp.* | 67,185 | 1,477 | |
Pall Corp. | 39,100 | 2,170 | |
Twin Disc, Inc. | 39,700 | 735 | |
10,036 | |||
Marine (0.7%) | |||
Danaos Corp.* | 269,091 | 982 | |
Professional Services (0.8%) | |||
FTI Consulting, Inc.* | 45,100 | 1,173 | |
Road & Rail (1.7%) | |||
Ryder System, Inc. | 61,704 | 2,469 | |
Semiconductors & Semiconductor Equipment (4.6%) | |||
Alliance Semiconductor Corp.* | 85,470 | 11 | |
Ceva, Inc.* | 54,300 | 875 |
See Notes to Schedule of Investments
120
Number of Shares | Value† (000's)z | ||
FormFactor, Inc.* | 180,900 | $921 | |
Freescale Semiconductor Holdings Ltd.* | 129,590 | 1,297 | |
Ikanos Communications, Inc.* | 194,466 | 181 | |
Spansion, Inc. Class A* | 133,040 | 1,521 | |
Ultratech, Inc.* | 64,394 | 2,124 | |
6,930 | |||
Software (7.0%) | |||
Accelrys, Inc.* | 180,463 | 1,388 | |
Cadence Design Systems, Inc.* | 187,807 | 2,479 | |
Comverse Technology, Inc.* | 111,358 | 668 | |
Rovi Corp.* | 124,180 | 1,905 | |
SeaChange International, Inc.* | 151,626 | 1,237 | |
Verint Systems, Inc.* | 98,405 | 2,817 | |
10,494 | |||
Specialty Retail (4.3%) | |||
Chico's FAS, Inc. | 84,500 | 1,600 | |
OfficeMax, Inc. | 619,619 | 3,600 | |
PEP Boys-Manny Moe & Jack | 82,500 | 742 | |
RadioShack Corp. | 183,000 | 445 | |
6,387 | |||
Total Common Stocks (Cost $134,911) | 142,551 | ||
Short-Term Investments (4.6%) | |||
State Street Institutional Treasury Money Market Fund Institutional Class | |||
(Cost $6,840) | 6,840,323 | 6,840 | |
Total Investments## (99.9%) (Cost $141,751) | 149,391 | ||
Cash, receivables and other assets, less liabilities (0.1%) | 96 | ||
Total Net Assets (100.0%) | $149,487 |
See Notes to Schedule of Investments
121
Schedule of Investments Large Cap Disciplined Growth Fund
TOP TEN EQUITY HOLDINGS |
1 | Apple, Inc. | 10.1 | % | ||||||
2 | Microsoft Corp. | 3.9 | % | ||||||
3 | Verizon Communications, Inc. | 3.6 | % | ||||||
4 | Amazon.com, Inc. | 3.5 | % | ||||||
5 | Philip Morris International, Inc. | 3.4 | % | ||||||
6 | Monsanto Co. | 3.1 | % | ||||||
7 | Google, Inc. Class A | 3.1 | % | ||||||
8 | Coca-Cola Co. | 3.0 | % | ||||||
9 | Crown Castle International Corp. | 2.5 | % | ||||||
10 | Range Resources Corp. | 2.4 | % |
Number of Shares | Value† (000's)z | ||
Common Stocks (96.4%) | |||
Aerospace & Defense (3.3%) | |||
Boeing Co. | 108,255 | $7,729 | |
Precision Castparts Corp. | 101,154 | 16,294 | |
24,023 | |||
Air Freight & Logistics (0.9%) | |||
FedEx Corp. | 74,100 | 6,493 | |
Auto Components (0.9%) | |||
BorgWarner, Inc.* | 92,300 | 6,349 | |
Beverages (6.1%) | |||
Anheuser-Busch InBev NV ADR | 88,964 | 7,489 | |
Coca-Cola Co. | 584,725 | 21,869 | |
PepsiCo, Inc. | 196,518 | 14,234 | |
43,592 | |||
Biotechnology (2.9%) | |||
Biogen Idec, Inc.* | 71,361 | 10,461 | |
Vertex Pharmaceuticals, Inc.* | 190,391 | 10,153 | |
20,614 | |||
Chemicals (4.2%) | |||
Monsanto Co. | 260,235 | 22,669 | |
Sherwin-Williams Co. | 52,252 | 7,476 | |
30,145 | |||
Communications Equipment (2.3%) | |||
QUALCOMM, Inc. | 272,630 | 16,756 | |
Computers & Peripherals (12.8%) | |||
Apple, Inc. | 109,177 | 72,629 | |
EMC Corp.* | 516,791 | 13,586 | |
SanDisk Corp.* | 141,359 | 5,827 | |
92,042 | |||
Diversified Telecommunication Services (3.6%) | |||
Verizon Communications, Inc. | 604,990 | 25,978 | |
Energy Equipment & Services (2.0%) | |||
Schlumberger Ltd. | 199,270 | 14,423 | |
Food Products (2.0%) | |||
Kraft Foods, Inc. Class A | 352,871 | 14,655 | |
Health Care Equipment & Supplies (1.6%) | |||
Covidien PLC | 201,932 | 11,318 | |
Health Care Providers & Services (2.1%) | |||
Express Scripts Holding Co.* | 154,873 | 9,698 | |
UnitedHealth Group, Inc. | 99,155 | 5,384 | |
15,082 | |||
Health Care Technology (1.1%) | |||
Cerner Corp.* | 112,993 | 8,264 | |
Hotels, Restaurants & Leisure (3.7%) | |||
Las Vegas Sands Corp. | 160,701 | 6,812 | |
Starbucks Corp. | 223,364 | 11,081 | |
Starwood Hotels & Resorts Worldwide, Inc. | 162,311 | 8,949 | |
26,842 | |||
Household Products (1.1%) | |||
Procter & Gamble Co. | 117,264 | 7,879 | |
Industrial Conglomerates (1.5%) | |||
Danaher Corp. | 195,674 | 10,482 | |
Insurance (1.0%) | |||
American International Group, Inc.* | 212,641 | 7,300 | |
Internet & Catalog Retail (3.5%) | |||
Amazon.com, Inc.* | 102,894 | 25,541 | |
Internet Software & Services (5.4%) | |||
Facebook, Inc. Class A* | 89,042 | 1,610 | |
Google, Inc. Class A* | 32,247 | 22,092 | |
Linkedin Corp. Class A* | 144,500 | 15,505 | |
39,207 | |||
IT Services (1.2%) | |||
Teradata Corp.* | 109,423 | 8,358 | |
Life Sciences Tools & Services (1.3%) | |||
Illumina, Inc.* | 216,848 | 9,125 | |
Machinery (1.4%) | |||
Joy Global, Inc. | 191,131 | 10,203 | |
Media (1.0%) | |||
Discovery Communications, Inc. Class A* | 133,024 | 7,295 | |
Multiline Retail (1.9%) | |||
Family Dollar Stores, Inc. | 210,175 | 13,376 | |
Oil, Gas & Consumable Fuels (3.9%) | |||
Kinder Morgan, Inc. | 291,467 | 10,426 | |
Range Resources Corp. | 267,853 | 17,461 | |
27,887 | |||
Pharmaceuticals (3.1%) | |||
Bristol-Myers Squibb Co. | 342,459 | 11,304 | |
Pfizer, Inc. | 457,452 | 10,915 | |
22,219 | |||
Road & Rail (1.8%) | |||
Union Pacific Corp. | 106,035 | 12,877 | |
Semiconductors & Semiconductor Equipment (2.2%) | |||
ASML Holding NV ADR | 282,613 | 16,044 | |
Software (6.2%) | |||
Citrix Systems, Inc.* | 110,267 | 8,567 | |
Microsoft Corp. | 915,462 | 28,214 | |
Oracle Corp. | 250,496 | 7,928 | |
44,709 | |||
Specialty Retail (1.3%) | |||
O'Reilly Automotive, Inc.* | 114,629 | 9,738 | |
Textiles, Apparel & Luxury Goods (3.2%) | |||
NIKE, Inc. Class B | 82,356 | 8,018 | |
Under Armour, Inc. Class A* | 126,832 | 7,383 | |
V.F. Corp. | 52,109 | 7,956 | |
23,357 | |||
Tobacco (3.4%) | |||
Philip Morris International, Inc. | 271,137 | 24,213 | |
Wireless Telecommunication Services (2.5%) | |||
Crown Castle International Corp.* | 282,003 | 17,896 | |
Total Common Stocks (Cost $603,961) | 694,282 | ||
Short-Term Investments (3.0%) | |||
State Street Institutional Liquid Reserves Fund Institutional Class (Cost $21,285) | 21,285,245 | 21,285 | |
Total Investments## (99.4%) (Cost $625,246) | 715,567 | ||
Cash, receivables and other assets, less liabilities (0.6%) | 4,629 | ||
Total Net Assets (100.0%) | $720,196 |
See Notes to Schedule of Investments
123
Schedule of Investments Large Cap Value Fund
TOP TEN EQUITY HOLDINGS |
1 | Exxon Mobil Corp. | 5.3 | % | ||||||
2 | J.P. Morgan Chase & Co. | 3.8 | % | ||||||
3 | Wells Fargo & Co. | 3.6 | % | ||||||
4 | Goldman Sachs Group, Inc. | 3.4 | % | ||||||
5 | Citigroup, Inc. | 3.3 | % | ||||||
6 | Range Resources Corp. | 3.1 | % | ||||||
7 | General Electric Co. | 3.0 | % | ||||||
8 | American International Group, Inc. | 2.9 | % | ||||||
9 | Johnson & Johnson | 2.4 | % | ||||||
10 | Freeport-McMoRan Copper & Gold, Inc. | 2.1 | % |
Number of Shares | Value† (000's)z | ||
Common Stocks (99.8%) | |||
Aerospace & Defense (0.7%) | |||
Boeing Co. | 146,212 | $10,439 | |
Air Freight & Logistics (1.2%) | |||
FedEx Corp. | 221,737 | 19,431 | |
Airlines (0.9%) | |||
Southwest Airlines Co. | 1,570,744 | 14,042 | |
Automobiles (0.9%) | |||
Ford Motor Co. | 1,527,479 | 14,267 | |
Beverages (1.3%) | |||
Dr Pepper Snapple Group, Inc. | 199,870 | 8,956 | |
PepsiCo, Inc. | 156,552 | 11,339 | |
20,295 | |||
Capital Markets (7.8%) | |||
Bank of New York Mellon Corp. | 1,035,000 | 23,329 | |
Charles Schwab Corp. | 1,229,840 | 16,591 | |
Goldman Sachs Group, Inc. | 507,685 | 53,672 | |
Invesco Ltd. | 623,422 | 14,763 | |
Legg Mason, Inc. | 285,498 | 7,017 | |
Morgan Stanley | 581,977 | 8,730 | |
124,102 | |||
Chemicals (3.7%) | |||
LyondellBasell Industries NV Class A | 486,441 | 23,758 | |
Monsanto Co. | 281,980 | 24,563 | |
Potash Corp. of Saskatchewan, Inc. | 177,987 | 7,310 | |
WR Grace & Co.* | 66,223 | 3,825 | |
59,456 | |||
Commercial Banks (6.5%) | |||
Regions Financial Corp. | 2,060,975 | 14,344 | |
SunTrust Banks, Inc. | 252,875 | 6,365 | |
U.S. Bancorp | 563,369 | 18,822 | |
Wells Fargo & Co. | 1,669,484 | 56,813 | |
Zions Bancorp | 407,501 | 7,844 | |
104,188 | |||
Communications Equipment (1.5%) | |||
Cisco Systems, Inc. | 1,278,879 | 24,401 | |
Computers & Peripherals (1.1%) | |||
Hewlett-Packard Co. | 533,707 | 9,009 | |
SanDisk Corp.* | 213,218 | 8,789 | |
17,798 | |||
Consumer Finance (0.4%) | |||
Discover Financial Services | 172,544 | 6,683 | |
Diversified Financial Services (8.9%) | |||
Bank of America Corp. | 2,457,073 | 19,632 | |
Citigroup, Inc. | 1,769,490 | 52,571 | |
J.P. Morgan Chase & Co. | 1,619,216 | 60,138 | |
Moody's Corp. | 220,833 | 8,745 | |
141,086 | |||
Diversified Telecommunication Services (1.1%) | |||
AT&T, Inc. | 470,528 | 17,240 | |
Electric Utilities (0.8%) | |||
FirstEnergy Corp. | 181,723 | 7,941 | |
PPL Corp. | 135,238 | 3,967 | |
11,908 | |||
Energy Equipment & Services (4.6%) | |||
Baker Hughes, Inc. | 175,009 | 7,981 | |
Diamond Offshore Drilling, Inc. | 309,655 | 20,753 | |
McDermott International, Inc.* | 650,527 | 7,247 | |
Rowan Cos. PLC Class A* | 155,978 | 5,487 | |
Schlumberger Ltd. | 437,624 | 31,675 | |
73,143 | |||
Food Products (0.5%) | |||
Archer-Daniels- Midland Co. | 287,726 | 7,697 | |
Health Care Equipment & Supplies (1.4%) | |||
Boston Scientific Corp.* | 2,487,774 | 13,434 | |
Zimmer Holdings, Inc. | 134,797 | 8,328 | |
21,762 | |||
Health Care Providers & Services (2.8%) | |||
Aetna, Inc. | 403,487 | 15,498 | |
Cardinal Health, Inc. | 366,637 | 14,501 | |
Coventry Health Care, Inc. | 351,435 | 14,630 | |
44,629 | |||
Hotels, Restaurants & Leisure (1.8%) | |||
Carnival Corp. | 819,929 | 28,435 | |
Household Products (0.6%) | |||
Colgate-Palmolive Co. | 86,885 | 9,237 | |
Industrial Conglomerates (3.0%) | |||
General Electric Co. | 2,337,175 | 48,403 | |
Insurance (7.1%) | |||
AFLAC, Inc. | 188,681 | 8,713 | |
American International Group, Inc.* | 1,327,567 | 45,575 | |
Berkshire Hathaway, Inc. Class B* | 189,956 | 16,021 | |
Lincoln National Corp. | 972,224 | 22,575 | |
MetLife, Inc. | 133,388 | 4,553 | |
Reinsurance Group of America, Inc. | 261,036 | 15,333 | |
112,770 | |||
Machinery (6.1%) | |||
Caterpillar, Inc. | 294,844 | 25,159 | |
Cummins, Inc. | 212,244 | 20,611 | |
Deere & Co. | 130,567 | 9,807 | |
Dover Corp. | 314,578 | 18,186 | |
Joy Global, Inc. | 443,803 | 23,690 | |
97,453 | |||
Media (2.4%) | |||
Comcast Corp. Class A | 468,705 | 15,716 | |
Gannett Co., Inc. | 320,954 | 4,898 | |
News Corp. Class B | 369,091 | 8,692 | |
Walt Disney Co. | 191,314 | 9,464 | |
38,770 |
See Notes to Schedule of Investments
124
Number of Shares | Value† (000's)z | |||
Metals & Mining (6.5%) | ||||
BHP Billiton Ltd. ADR | 360,093 | $23,694 | ||
Freeport-McMoRan Copper & Gold, Inc. | 930,535 | 33,602 | ||
Newmont Mining Corp. | 539,434 | 27,339 | ||
Nucor Corp. | 199,878 | 7,525 | ||
United States Steel Corp. | 487,981 | 9,491 | ||
Walter Energy, Inc. | 61,992 | 2,027 | ||
103,678 | ||||
Multiline Retail (2.2%) | ||||
J.C. Penney Co., Inc. | 445,734 | 11,624 | ||
Target Corp. | 376,046 | 24,101 | ||
35,725 | ||||
Oil, Gas & Consumable Fuels (13.8%) | ||||
Anadarko Petroleum Corp. | 213,366 | 14,780 | ||
Cabot Oil & Gas Corp. | 187,198 | 7,752 | ||
Chevron Corp. | 286,459 | 32,129 | ||
CONSOL Energy, Inc. | 362,785 | 10,956 | ||
Devon Energy Corp. | 271,023 | 15,673 | ||
Exxon Mobil Corp. | 963,985 | 84,156 | ||
Murphy Oil Corp. | 112,537 | 5,777 | ||
Range Resources Corp. | 749,592 | 48,866 | ||
220,089 | ||||
Pharmaceuticals (5.2%) | ||||
Johnson & Johnson | 577,055 | 38,911 | ||
Merck & Co., Inc. | 287,422 | 12,374 | ||
Pfizer, Inc. | 1,326,466 | 31,649 | ||
82,934 | ||||
Road & Rail (1.0%) | ||||
CSX Corp. | 695,890 | 15,630 | ||
Heartland Express, Inc. | 60,082 | 782 | ||
16,412 | ||||
Semiconductors & Semiconductor Equipment (1.2%) | ||||
Analog Devices, Inc. | 5,446 | 216 | ||
Intel Corp. | 733,860 | 18,222 | ||
18,438 | ||||
Software (1.7%) | ||||
Microsoft Corp. | 741,816 | 22,863 | ||
Oracle Corp. | 114,477 | 3,623 | ||
26,486 | ||||
Specialty Retail (0.8%) | ||||
Urban Outfitters, Inc.* | 339,001 | 12,726 | ||
Wireless Telecommunication Services (0.3%) | ||||
Sprint Nextel Corp.* | 1,120,070 | 5,432 | ||
Total Common Stocks (Cost $1,490,331) | 1,589,555 | |||
Short-Term Investments (1.1%) | ||||
State Street Institutional Liquid Reserves Fund Institutional Class (Cost $16,770) | 16,770,157 | 16,770 | ||
Total Investments## (100.9%) (Cost $1,507,101) | 1,606,325 | |||
Liabilities, less cash, receivables and other assets [(0.9%)] | (13,911 | ) | ||
Total Net Assets (100.0%) | $1,592,414 |
See Notes to Schedule of Investments
125
Schedule of Investments Mid Cap Growth Fund
TOP TEN EQUITY HOLDINGS |
1 | Ross Stores, Inc. | 2.3 | % | ||||||
2 | Alexion Pharmaceuticals, Inc. | 2.2 | % | ||||||
3 | SBA Communications Corp. Class A | 2.0 | % | ||||||
4 | Stericycle, Inc. | 1.9 | % | ||||||
5 | Dollar Tree, Inc. | 1.9 | % | ||||||
6 | Fastenal Co. | 1.7 | % | ||||||
7 | Catamaran Corp. | 1.7 | % | ||||||
8 | Trimble Navigation Ltd. | 1.6 | % | ||||||
9 | Roper Industries, Inc. | 1.6 | % | ||||||
10 | Cerner Corp. | 1.5 | % |
Number of Shares | Value† (000's)z | |||
Common Stocks (96.3%) | ||||
Aerospace & Defense (2.8%) | ||||
BE Aerospace, Inc.* | 139,900 | $5,632 | ||
HEICO Corp. | 168,500 | 5,871 | ||
Precision Castparts Corp. | 40,300 | 6,491 | ||
17,994 | ||||
Auto Components (0.4%) | ||||
BorgWarner, Inc.* | 42,400 | 2,916 | ||
Beverages (0.7%) | ||||
Beam, Inc. | 77,500 | 4,523 | ||
Biotechnology (3.5%) | ||||
Alexion Pharmaceuticals, Inc.* | 130,000 | 13,937 | ||
Cepheid, Inc.* | 114,900 | 4,337 | ||
Cubist Pharmaceuticals, Inc.* | 94,500 | 4,366 | ||
22,640 | ||||
Building Products (0.8%) | ||||
Fortune Brands Home & Security, Inc.* | 195,000 | 4,973 | ||
Capital Markets (2.2%) | ||||
Affiliated Managers Group, Inc.* | 75,600 | 8,892 | ||
Raymond James Financial, Inc. | 145,000 | 5,104 | ||
13,996 | ||||
Chemicals (3.1%) | ||||
Airgas, Inc. | 118,200 | 9,819 | ||
Ashland, Inc. | 91,400 | 6,730 | ||
Sigma-Aldrich Corp. | 47,000 | 3,338 | ||
19,887 | ||||
Commercial Services & Supplies (1.9%) | ||||
Stericycle, Inc.* | 131,200 | 12,007 | ||
Communications Equipment (0.8%) | ||||
F5 Networks, Inc.* | 51,100 | 4,982 | ||
Diversified Financial Services (1.1%) | ||||
Intercontinental Exchange, Inc.* | 53,106 | 7,260 | ||
Diversified Telecommunication Services (0.5%) | ||||
tw telecom, Inc.* | 127,800 | 3,214 | ||
Electrical Equipment (4.0%) | ||||
AMETEK, Inc. | 274,200 | 9,408 | ||
Roper Industries, Inc. | 102,100 | 10,495 | ||
Sensata Technologies Holding NV* | 198,600 | 5,964 | ||
25,867 | ||||
Electronic Equipment, Instruments & Components (2.1%) | ||||
National Instruments Corp. | 105,000 | 2,705 | ||
Trimble Navigation Ltd.* | 214,500 | 10,521 | ||
13,226 | ||||
Energy Equipment & Services (3.6%) | ||||
Cameron International Corp.* | 70,000 | 3,830 | ||
Core Laboratories NV | 52,100 | 6,366 | ||
Oceaneering International, Inc. | 63,300 | 3,389 | ||
Oil States International, Inc.* | 118,000 | 9,232 | ||
22,817 | ||||
Food & Staples Retailing (1.7%) | ||||
PriceSmart, Inc. | 60,000 | 4,388 | ||
Whole Foods Market, Inc. | 67,400 | 6,521 | ||
10,909 | ||||
Food Products (1.0%) | ||||
Mead Johnson Nutrition Co. | 88,300 | 6,475 | ||
Health Care Equipment & Supplies (2.9%) | ||||
Edwards Lifesciences Corp.* | 52,100 | 5,320 | ||
Intuitive Surgical, Inc.* | 11,800 | 5,803 | ||
Masimo Corp.* | 118,800 | 2,623 | ||
Volcano Corp.* | 171,100 | 4,839 | ||
18,585 | ||||
Health Care Providers & Services (3.5%) | ||||
Catamaran Corp.* | 125,000 | 10,894 | ||
DaVita, Inc.* | 62,300 | 6,060 | ||
HMS Holdings Corp.* | 158,800 | 5,472 | ||
22,426 | ||||
Health Care Technology (1.5%) | ||||
Cerner Corp.* | 134,300 | 9,823 | ||
Hotels, Restaurants & Leisure (1.1%) | ||||
Chipotle Mexican Grill, Inc.* | 9,200 | 2,655 | ||
Starwood Hotels & Resorts Worldwide, Inc. | 83,200 | 4,587 | ||
7,242 | ||||
Household Products (1.1%) | ||||
Church & Dwight Co., Inc. | 129,200 | 7,072 | ||
Internet Software & Services (2.6%) | ||||
Liquidity Services, Inc.* | 140,000 | 7,335 | ||
Rackspace Hosting, Inc.* | 155,700 | 9,339 | ||
16,674 | ||||
IT Services (3.8%) | ||||
Alliance Data Systems Corp.* | 53,600 | 7,378 | ||
Cognizant Technology Solutions Corp. Class A* | 99,100 | 6,370 | ||
Teradata Corp.* | 43,500 | 3,322 | ||
VeriFone Systems, Inc.* | 205,000 | 7,122 | ||
24,192 | ||||
Life Sciences Tools & Services (1.0%) | ||||
Illumina, Inc.* | 145,500 | 6,123 | ||
Machinery (2.8%) | ||||
Cummins, Inc. | 31,100 | 3,020 | ||
Donaldson Co., Inc. | 208,300 | 7,351 | ||
Pall Corp. | 137,400 | 7,627 | ||
17,998 | ||||
Media (1.6%) | ||||
AMC Networks, Inc. Class A* | 143,000 | 5,626 | ||
Discovery Communications, Inc. Class A* | 80,800 | 4,431 | ||
10,057 |
See Notes to Schedule of Investments
126
Number of Shares | Value† (000's)z | |||
Multiline Retail (1.9%) | ||||
Dollar Tree, Inc.* | 249,200 | $12,004 | ||
Oil, Gas & Consumable Fuels (3.0%) | ||||
Cabot Oil & Gas Corp. | 199,100 | 8,245 | ||
Concho Resources, Inc.* | 72,500 | 6,506 | ||
Denbury Resources, Inc.* | 297,500 | 4,608 | ||
19,359 | ||||
Pharmaceuticals (2.0%) | ||||
Perrigo Co. | 70,500 | 7,753 | ||
Salix Pharmaceuticals Ltd.* | 112,900 | 4,963 | ||
12,716 | ||||
Professional Services (2.0%) | ||||
Advisory Board Co.* | 105,000 | 4,655 | ||
Verisk Analytics, Inc. Class A* | 166,500 | 8,078 | ||
12,733 | ||||
Real Estate Management & Development (1.1%) | ||||
Jones Lang LaSalle, Inc. | 101,600 | 7,328 | ||
Road & Rail (2.6%) | ||||
Canadian Pacific Railway Ltd. | 44,400 | 3,672 | ||
J.B. Hunt Transport Services, Inc. | 145,000 | 7,604 | ||
Kansas City Southern | 67,900 | 5,251 | ||
16,527 | ||||
Semiconductors & Semiconductor Equipment (3.9%) | ||||
Altera Corp. | 160,300 | 5,984 | ||
Avago Technologies Ltd. | 252,800 | 9,245 | ||
Cavium, Inc.* | 175,000 | 5,652 | ||
Microchip Technology, Inc. | 111,100 | 3,861 | ||
24,742 | ||||
Software (9.1%) | ||||
ANSYS, Inc.* | 125,100 | 8,719 | ||
Aspen Technology, Inc.* | 150,000 | 3,657 | ||
Check Point Software Technologies Ltd.* | 105,200 | 4,849 | ||
Citrix Systems, Inc.* | 88,900 | 6,907 | ||
Concur Technologies, Inc.* | 47,500 | 3,439 | ||
Informatica Corp.* | 123,600 | 4,029 | ||
MICROS Systems, Inc.* | 129,700 | 6,571 | ||
QLIK Technologies, Inc.* | 201,200 | 4,255 | ||
Red Hat, Inc.* | 118,000 | 6,613 | ||
Salesforce.com, Inc.* | 39,800 | 5,778 | ||
Ultimate Software Group, Inc.* | 37,500 | 3,720 | ||
58,537 | ||||
Specialty Retail (9.7%) | ||||
Bed Bath & Beyond, Inc.* | 104,200 | 6,999 | ||
Cabela's, Inc.* | 55,000 | 2,641 | ||
Dick's Sporting Goods, Inc. | 154,700 | 7,698 | ||
DSW, Inc. Class A | 112,300 | 7,246 | ||
O'Reilly Automotive, Inc.* | 103,700 | 8,809 | ||
Ross Stores, Inc. | 209,400 | 14,488 | ||
Tractor Supply Co. | 84,300 | 8,049 | ||
Urban Outfitters, Inc.* | 160,000 | 6,006 | ||
61,936 | ||||
Textiles, Apparel & Luxury Goods (2.8%) | ||||
Coach, Inc. | 60,000 | 3,488 | ||
PVH Corp. | 78,100 | 7,334 | ||
Vera Bradley, Inc.* | 140,000 | 2,972 | ||
Warnaco Group, Inc.* | 78,100 | 4,016 | ||
17,810 | ||||
Thrifts & Mortgage Finance (0.2%) | ||||
Ocwen Financial Corp.* | 62,500 | 1,608 | ||
Trading Companies & Distributors (2.6%) | ||||
Fastenal Co. | 254,800 | 10,979 | ||
MSC Industrial Direct Co., Inc. Class A | 80,200 | 5,558 | ||
16,537 | ||||
Wireless Telecommunication Services (3.3%) | ||||
Crown Castle International Corp.* | 134,300 | 8,523 | ||
SBA Communications Corp. Class A* | 215,500 | 12,882 | ||
21,405 | ||||
Total Common Stocks (Cost $439,403) | 617,120 | |||
Short-Term Investments (4.3%) | ||||
State Street Institutional Liquid Reserves Fund Institutional Class (Cost $27,449) | 27,448,667 | 27,449 | ||
Total Investments## (100.6%) (Cost $466,852) | 644,569 | |||
Liabilities, less cash, receivables and other assets [(0.6%)] | (3,789 | ) | ||
Total Net Assets (100.0%) | $640,780 |
See Notes to Schedule of Investments
127
Schedule of Investments Mid Cap Intrinsic Value Fund
TOP TEN EQUITY HOLDINGS |
1 | Constellation Brands, Inc. Class A | 3.4 | % | ||||||
2 | Safeway, Inc. | 3.0 | % | ||||||
3 | Zimmer Holdings, Inc. | 2.8 | % | ||||||
4 | Virgin Media, Inc. | 2.7 | % | ||||||
5 | Tyco International Ltd. | 2.6 | % | ||||||
6 | Corrections Corporation of America | 2.5 | % | ||||||
7 | Avery Dennison Corp. | 2.4 | % | ||||||
8 | General Dynamics Corp. | 2.4 | % | ||||||
9 | Southwestern Energy Co. | 2.4 | % | ||||||
10 | Western Union Co. | 2.3 | % |
Number of Shares | Value† (000's)z | |||
Common Stocks (97.0%) | ||||
Aerospace & Defense (4.3%) | ||||
General Dynamics Corp. | 26,400 | $1,729 | ||
Rockwell Collins, Inc. | 29,600 | 1,447 | ||
3,176 | ||||
Auto Components (1.0%) | ||||
Lear Corp. | 18,500 | 718 | ||
Beverages (3.4%) | ||||
Constellation Brands, Inc. Class A* | 75,900 | 2,500 | ||
Capital Markets (2.0%) | ||||
State Street Corp. | 34,700 | 1,444 | ||
Commercial Banks (5.6%) | ||||
BankUnited, Inc. | 33,500 | 846 | ||
BB&T Corp. | 30,400 | 959 | ||
Comerica, Inc. | 30,800 | 946 | ||
Huntington Bancshares, Inc. | 199,100 | 1,314 | ||
4,065 | ||||
Commercial Services & Supplies (10.5%) | ||||
Avery Dennison Corp. | 57,100 | 1,783 | ||
Brink's Co. | 54,900 | 1,222 | ||
Corrections Corporation of America | 53,900 | 1,795 | ||
Covanta Holding Corp. | 80,300 | 1,373 | ||
Republic Services, Inc. | 53,400 | 1,477 | ||
7,650 | ||||
Communications Equipment (2.1%) | ||||
Motorola Solutions, Inc. | 31,700 | 1,511 | ||
Construction & Engineering (2.1%) | ||||
KBR, Inc. | 57,800 | 1,566 | ||
Electric Utilities (2.0%) | ||||
NV Energy, Inc. | 82,200 | 1,442 | ||
Electronic Equipment, Instruments & Components (2.4%) | ||||
Dolby Laboratories, Inc. Class A* | 18,200 | 604 | ||
Flextronics International Ltd.* | 169,400 | 1,140 | ||
1,744 | ||||
Energy Equipment & Services (1.8%) | ||||
Cameron International Corp.* | 23,500 | 1,286 | ||
Food & Staples Retailing (5.3%) | ||||
CVS Caremark Corp. | 37,100 | 1,690 | ||
Safeway, Inc. | 140,200 | 2,194 | ||
3,884 | ||||
Health Care Equipment & Supplies (5.0%) | ||||
Covidien PLC | 28,700 | 1,609 | ||
Zimmer Holdings, Inc. | 32,900 | 2,032 | ||
3,641 | ||||
Health Care Providers & Services (5.1%) | ||||
Cardinal Health, Inc. | 37,400 | 1,479 | ||
Humana, Inc. | 16,400 | 1,149 | ||
Omnicare, Inc. | 34,600 | 1,121 | ||
3,749 | ||||
Hotels, Restaurants & Leisure (1.2%) | ||||
Wyndham Worldwide Corp. | 16,400 | 855 | ||
Industrial Conglomerates (2.6%) | ||||
Tyco International Ltd. | 33,900 | 1,911 | ||
Insurance (1.7%) | ||||
Willis Group Holdings PLC | 33,400 | 1,246 | ||
IT Services (6.3%) | ||||
Amdocs Ltd.* | 46,200 | 1,489 | ||
Fidelity National Information Services, Inc. | 44,400 | 1,399 | ||
Western Union Co. | 96,500 | 1,699 | ||
4,587 | ||||
Machinery (4.2%) | ||||
Ingersoll-Rand PLC | 22,800 | 1,066 | ||
ITT Corp. | 62,400 | 1,242 | ||
Navistar International Corp.* | 35,400 | 778 | ||
3,086 | ||||
Media (4.9%) | ||||
Cablevision Systems Corp. Class A | 108,200 | 1,618 | ||
Virgin Media, Inc. | 72,000 | 1,985 | ||
3,603 | ||||
Multi-Utilities (3.9%) | ||||
CenterPoint Energy, Inc. | 69,800 | 1,423 | ||
Sempra Energy | 21,300 | 1,410 | ||
2,833 | ||||
Multiline Retail (2.1%) | ||||
Kohl's Corp. | 29,400 | 1,535 | ||
Oil, Gas & Consumable Fuels (3.6%) | ||||
Southwestern Energy Co.* | 55,300 | 1,722 | ||
Sunoco, Inc. | 19,900 | 939 | ||
2,661 | ||||
Pharmaceuticals (2.2%) | ||||
Hospira, Inc.* | 47,000 | 1,578 | ||
Real Estate Investment Trusts (1.3%) | ||||
Starwood Property Trust, Inc. | 38,900 | 916 | ||
Software (3.9%) | ||||
BMC Software, Inc.* | 29,300 | 1,213 | ||
Symantec Corp.* | 93,900 | 1,674 | ||
2,887 | ||||
Specialty Retail (4.1%) | ||||
Best Buy Co., Inc. | 87,900 | 1,559 | ||
Staples, Inc. | 130,100 | 1,421 | ||
2,980 | ||||
Textiles, Apparel & Luxury Goods (0.6%) | ||||
Coach, Inc. | 7,600 | 442 | ||
Thrifts & Mortgage Finance (1.8%) | ||||
People's United Financial, Inc. | 112,800 | 1,350 | ||
Total Common Stocks (Cost $65,929) | 70,846 |
See Notes to Schedule of Investments
128
Number of Shares | Value† (000's)z | ||
Short-Term Investments (3.0%) | |||
State Street Institutional Liquid Reserves Fund Institutional Class (Cost $2,213) | 2,213,122 | $2,213 | |
Total Investments## (100.0%) (Cost $68,142) | 73,059 | ||
Cash, receivables and other assets, less liabilities (0.0%) | 28 | ||
Total Net Assets (100.0%) | $73,087 |
See Notes to Schedule of Investments
129
Schedule of Investments Multi-Cap Opportunities Fund
TOP TEN EQUITY HOLDINGS | |||||||||
1 | Boeing Co. | 3.7 | % | ||||||
2 | Activision Blizzard, Inc. | 3.6 | % | ||||||
3 | ConAgra Foods, Inc. | 3.6 | % | ||||||
4 | J.P. Morgan Chase & Co. | 3.6 | % | ||||||
5 | CSX Corp. | 3.5 | % | ||||||
6 | Kraft Foods, Inc. Class A | 3.5 | % | ||||||
7 | HCA Holdings, Inc. | 3.5 | % | ||||||
8 | Cenovus Energy, Inc. | 3.5 | % | ||||||
9 | Hanesbrands, Inc. | 3.5 | % | ||||||
10 | Bed Bath & Beyond, Inc. | 3.4 | % |
Number of Shares | Value† (000's)z | |||
Common Stocks (97.0%) | ||||
Aerospace & Defense (7.0%) | ||||
Boeing Co. | 240,000 | $17,136 | ||
Raytheon Co. | 275,000 | 15,543 | ||
32,679 | ||||
Chemicals (4.7%) | ||||
Ecolab, Inc. | 60,000 | 3,842 | ||
Methanex Corp. | 320,000 | 9,539 | ||
Scotts Miracle-Gro Co. Class A | 205,000 | 8,538 | ||
21,919 | ||||
Commercial Banks (0.4%) | ||||
Boston Private Financial Holdings, Inc. | 215,000 | 2,040 | ||
Commercial Services & Supplies (2.7%) | ||||
Covanta Holding Corp. | 740,000 | 12,654 | ||
Communications Equipment (0.2%) | ||||
MRV Communications, Inc. | 1,600,000 | 864 | ||
Containers & Packaging (2.2%) | ||||
Sealed Air Corp. | 725,000 | 10,346 | ||
Diversified Financial Services (3.6%) | ||||
J.P. Morgan Chase & Co. | 450,000 | 16,713 | ||
Electrical Equipment (4.0%) | ||||
ABB Ltd. ADR* | 675,000 | 11,691 | ||
Rockwell Automation, Inc. | 100,000 | 7,206 | ||
18,897 | ||||
Energy Equipment & Services (4.8%) | ||||
McDermott International, Inc.* | 700,000 | 7,798 | ||
Schlumberger Ltd. | 205,000 | 14,838 | ||
22,636 | ||||
Food Products (7.1%) | ||||
ConAgra Foods, Inc. | 670,000 | 16,824 | ||
Kraft Foods, Inc. Class A | 400,000 | 16,612 | ||
33,436 | ||||
Gas Utilities (2.5%) | ||||
National Fuel Gas Co. | 230,000 | 11,477 | ||
Health Care Equipment & Supplies (2.1%) | ||||
Hill-Rom Holdings, Inc. | 350,000 | 9,706 | ||
Health Care Providers & Services (6.0%) | ||||
HCA Holdings, Inc. | 575,000 | 16,416 | ||
Henry Schein, Inc.* | 150,000 | 11,522 | ||
27,938 | ||||
Hotels, Restaurants & Leisure (1.9%) | ||||
Darden Restaurants, Inc. | 175,000 | 9,091 | ||
Household Products (3.0%) | ||||
Procter & Gamble Co. | 210,000 | 14,110 | ||
Industrial Conglomerates (3.0%) | ||||
3M Co. | 150,000 | 13,890 | ||
Internet Software & Services (1.2%) | ||||
eBay, Inc.* | 120,000 | 5,696 | ||
Leisure Equipment & Products (3.3%) | ||||
Mattel, Inc. | 440,000 | 15,462 | ||
Life Sciences Tools & Services (1.0%) | ||||
Thermo Fisher Scientific, Inc. | 80,000 | 4,588 | ||
Media (4.8%) | ||||
News Corp. Class A | 360,000 | 8,420 | ||
Omnicom Group, Inc. | 275,000 | 14,127 | ||
22,547 | ||||
Office Electronics (1.2%) | ||||
Xerox Corp. | 750,000 | 5,528 | ||
Oil, Gas & Consumable Fuels (6.4%) | ||||
Cenovus Energy, Inc. | 500,000 | 16,350 | ||
Range Resources Corp. | 210,000 | 13,690 | ||
30,040 | ||||
Pharmaceuticals (3.4%) | ||||
Pfizer, Inc. | 670,000 | 15,986 | ||
Professional Services (3.8%) | ||||
Barrett Business Services, Inc. | 75,000 | 1,900 | ||
Nielsen Holdings NV* | 570,000 | 15,983 | ||
17,883 | ||||
Road & Rail (3.5%) | ||||
CSX Corp. | 740,000 | 16,620 | ||
Software (3.6%) | ||||
Activision Blizzard, Inc. | 1,450,000 | 17,052 | ||
Specialty Retail (3.4%) | ||||
Bed Bath & Beyond, Inc.* | 240,000 | 16,121 | ||
Textiles, Apparel & Luxury Goods (6.2%) | ||||
Carter's, Inc.* | 30,000 | 1,671 | ||
Deckers Outdoor Corp.* | 225,000 | 11,142 | ||
Hanesbrands, Inc.* | 500,000 | 16,215 | ||
29,028 | ||||
Total Common Stocks (Cost $429,757) | 454,947 | |||
Short-Term Investments (4.0%) | ||||
State Street Institutional Liquid Reserves Fund Institutional Class (Cost $18,565) | 18,565,410 | 18,565 | ||
Total Investments## (101.0%) (Cost $448,322) | 473,512 | |||
Liabilities, less cash, receivables and other assets [(1.0%)] | (4,847 | ) | ||
Total Net Assets (100.0%) | $468,665 | |||
See Notes to Schedule of Investments
130
Schedule of Investments Real Estate Fund
TOP TEN EQUITY HOLDINGS | |||||||||
1 | Simon Property Group, Inc. | 9.9 | % | ||||||
2 | American Tower Corp. | 5.8 | % | ||||||
3 | Boston Properties, Inc. | 5.5 | % | ||||||
4 | Public Storage | 5.4 | % | ||||||
5 | Ventas, Inc. | 4.6 | % | ||||||
6 | Equity Residential | 4.0 | % | ||||||
7 | Camden Property Trust | 3.6 | % | ||||||
8 | HCP, Inc. | 3.5 | % | ||||||
9 | AvalonBay Communities, Inc. | 3.3 | % | ||||||
10 | SL Green Realty Corp. | 3.0 | % |
Number of Shares | Value† (000's)z | ||
Common Stocks (97.6%) | |||
Apartments (17.5%) | |||
American Campus Communities, Inc. | 276,300 | $12,881 | |
AvalonBay Communities, Inc. | 146,632 | 20,751 | |
BRE Properties, Inc. | 101,800 | 5,082 | |
Camden Property Trust | 320,900 | 22,280 | |
Equity Residential | 406,650 | 24,562 | |
Essex Property Trust, Inc. | 79,800 | 12,128 | |
UDR, Inc. | 447,100 | 11,289 | |
108,973 | |||
Diversified (7.7%) | |||
American Assets Trust, Inc. | 311,499 | 8,492 | |
Digital Realty Trust, Inc. | 234,970 | 17,508 | |
DuPont Fabros Technology, Inc. | 336,684 | 9,279 | |
Vornado Realty Trust | 153,523 | 12,461 | |
47,740 | |||
Health Care (12.7%) | |||
HCP, Inc. | 473,100 | 21,696 | |
Health Care REIT, Inc. | 282,640 | 16,517 | |
OMEGA Healthcare Investors, Inc. | 488,500 | 11,734 | |
Ventas, Inc. | 438,930 | 28,746 | |
78,693 | |||
Industrial (4.1%) | |||
EastGroup Properties, Inc. | 191,000 | 10,238 | |
Prologis, Inc. | 450,758 | 15,402 | |
25,640 | |||
Infrastructure (5.8%) | |||
American Tower Corp. | 512,871 | 36,106 | |
Lodging/Resorts (3.0%) | |||
Host Hotels & Resorts, Inc. | 771,743 | 11,808 | |
Strategic Hotels & Resorts, Inc.* | 1,148,500 | 7,006 | |
18,814 | |||
Mixed (1.0%) | |||
PS Business Parks, Inc. | 94,600 | 6,449 | |
Office (10.1%) | |||
Boston Properties, Inc. | 303,800 | 34,065 | |
Kilroy Realty Corp. | 181,712 | 8,579 | |
Mission West Properties, Inc. | 200,880 | 1,812 | |
SL Green Realty Corp. | 227,600 | 18,344 | |
62,800 | |||
Real Estate Management & Development (2.4%) | |||
Brookfield Asset Management, Inc. Class A | 180,877 | 6,246 | |
Brookfield Office Properties, Inc. | 512,915 | 8,586 | |
14,832 | |||
Regional Malls (16.5%) | |||
General Growth Properties, Inc., | 388,900 | 8,003 | |
Glimcher Realty Trust | 872,400 | 9,143 | |
Macerich Co. | 255,800 | 15,238 | |
Simon Property Group, Inc. | 387,548 | 61,504 | |
Taubman Centers, Inc. | 110,760 | 8,863 | |
102,751 | |||
Self Storage (6.4%) | |||
Public Storage | 229,300 | 33,377 | |
Sovran Self Storage, Inc. | 105,700 | 6,009 | |
39,386 | |||
Shopping Centers (6.0%) | |||
Federal Realty Investment Trust | 144,700 | 15,615 | |
Tanger Factory Outlet Centers, Inc. | 364,500 | 12,229 | |
Urstadt Biddle Properties, Inc. Class A | 483,700 | 9,432 | |
37,276 | |||
Timber (4.4%) | |||
Rayonier, Inc. | 336,900 | 16,505 | |
Weyerhaeuser Co. | 429,998 | 10,711 | |
27,216 | |||
Total Common Stocks (Cost $507,493) | 606,676 | ||
Short-Term Investments (2.1%) | |||
State Street Institutional Liquid Reserves Fund Institutional Class (Cost $12,808) | 12,808,107 | 12,808 | |
Total Investments## (99.7%) (Cost $520,301) | 619,484 | ||
Cash, receivables and other assets, less liabilities (0.3%) | 1,881 | ||
Total Net Assets (100.0%) | $621,365 |
See Notes to Schedule of Investments
131
Schedule of Investments Select Equities Fund
TOP TEN EQUITY HOLDINGS | |||||
1 | American Tower Corp. | 6.8 | % | ||
2 | Google, Inc. Class A | 6.6 | % | ||
3 | Union Pacific Corp. | 5.9 | % | ||
4 | Tyco International Ltd. | 5.3 | % | ||
5 | BorgWarner, Inc. | 5.3 | % | ||
6 | Nielsen Holdings NV | 5.0 | % | ||
7 | Praxair, Inc. | 4.7 | % | ||
8 | Visa, Inc. Class A | 4.6 | % | ||
9 | Capital One Financial Corp. | 4.4 | % | ||
10 | Discovery Communications, Inc. Class C | 4.4 | % |
Number of Shares | Value† (000's)z | ||
Common Stocks (90.5%) | |||
Aerospace & Defense (3.4%) | |||
Boeing Co. | 32,433 | $2,316 | |
Air Freight & Logistics (2.9%) | |||
United Parcel Service, Inc. Class B | 26,706 | 1,971 | |
Auto Components (5.3%) | |||
BorgWarner, Inc.* | 52,212 | 3,591 | |
Capital Markets (3.7%) | |||
BlackRock, Inc. | 14,312 | 2,524 | |
Chemicals (4.2%) | |||
Celanese Corp. Class A | 44,436 | 1,700 | |
Monsanto Co. | 13,219 | 1,152 | |
2,852 | |||
Consumer Finance (4.4%) | |||
Capital One Financial Corp. | 53,268 | 3,011 | |
Hotels, Restaurants & Leisure (2.0%) | |||
McDonald's Corp. | 15,231 | 1,363 | |
Industrial Conglomerates (5.3%) | |||
Tyco International Ltd. | 64,001 | 3,609 | |
Industrial Gases (4.7%) | |||
Praxair, Inc. | 29,861 | 3,150 | |
Insurance (3.6%) | |||
American International Group, Inc.* | 71,170 | 2,443 | |
Internet Software & Services (10.9%) | |||
eBay, Inc.* | 61,697 | 2,929 | |
Google, Inc. Class A* | 6,500 | 4,453 | |
7,382 | |||
IT Services (4.6%) | |||
Visa, Inc. Class A | 24,500 | 3,142 | |
Machinery (4.1%) | |||
Cummins, Inc. | 28,572 | 2,775 | |
Media (4.4%) | |||
Discovery Communications, Inc. Class C* | 57,093 | 2,958 | |
Oil, Gas & Consumable Fuels (5.9%) | |||
Enbridge Energy Management LLC* | 67,507 | 2,101 | |
Kinder Morgan, Inc. | 52,050 | 1,862 | |
3,963 | |||
Pharmaceuticals (3.4%) | |||
Novartis AG ADR | 39,231 | 2,315 | |
Professional Services (5.0%) | |||
Nielsen Holdings NV* | 122,000 | 3,421 | |
Real Estate Investment Trusts (6.8%) | |||
American Tower Corp. | 66,016 | 4,648 | |
Road & Rail (5.9%) | |||
Union Pacific Corp. | 32,801 | 3,983 | |
Total Common Stocks (Cost $53,134) | 61,417 | ||
Short-Term Investments (9.4%) | |||
State Street Institutional Treasury Money Market Fund Institutional Class (Cost $6,413) | 6,413,453 | 6,413 | |
Total Investments## (99.9%) (Cost $59,547) | 67,830 | ||
Cash, receivables and other assets, less liabilities (0.1%) | 91 | ||
Total Net Assets (100.0%) | $67,921 |
See Notes to Schedule of Investments
132
Schedule of Investments Small Cap Growth Fund
TOP TEN EQUITY HOLDINGS | |||||||||
1 | Ultimate Software Group, Inc. | 2.7 | % | ||||||
2 | Concur Technologies, Inc. | 2.3 | % | ||||||
3 | Chico's FAS, Inc. | 2.0 | % | ||||||
4 | Cavium, Inc. | 1.9 | % | ||||||
5 | Cyberonics, Inc. | 1.8 | % | ||||||
6 | Ulta Salon Cosmetics & Fragrance, Inc. | 1.8 | % | ||||||
7 | Tractor Supply Co. | 1.8 | % | ||||||
8 | Watsco, Inc. | 1.8 | % | ||||||
9 | Cabela's, Inc. | 1.8 | % | ||||||
10 | Oasis Petroleum, Inc. | 1.8 | % |
Number of Shares | Value† (000's)z | ||
Common Stocks (98.1%) | |||
Air Freight & Logistics (1.6%) | |||
Echo Global Logistics, Inc.* | 109,100 | $1,932 | |
Biotechnology (2.5%) | |||
Alkermes PLC* | 76,000 | 1,395 | |
Cubist Pharmaceuticals, Inc.* | 34,400 | 1,589 | |
2,984 | |||
Chemicals (2.6%) | |||
American Vanguard Corp. | 53,000 | 1,559 | |
PolyOne Corp. | 91,400 | 1,443 | |
3,002 | |||
Commercial Banks (4.7%) | |||
CVB Financial Corp. | 147,300 | 1,760 | |
Signature Bank NY* | 27,800 | 1,797 | |
Texas Capital Bancshares, Inc.* | 41,500 | 1,910 | |
5,467 | |||
Commercial Services & Supplies (4.9%) | |||
Healthcare Services Group, Inc. | 73,200 | 1,550 | |
InnerWorkings, Inc.* | 127,500 | 1,536 | |
Portfolio Recovery Associates, Inc.* | 14,700 | 1,475 | |
Tetra Tech, Inc.* | 44,700 | 1,160 | |
5,721 | |||
Diversified Consumer Services (1.2%) | |||
Steiner Leisure Ltd.* | 30,000 | 1,402 | |
Electrical Equipment (1.6%) | |||
Regal-Beloit Corp. | 27,000 | 1,838 | |
Electronic Equipment, Instruments & Components (1.0%) | |||
OSI Systems, Inc.* | 16,200 | 1,200 | |
Energy Equipment & Services (2.2%) | |||
Forum Energy Technologies, Inc.* | 59,200 | 1,401 | |
Hornbeck Offshore Services, Inc.* | 29,200 | 1,134 | |
2,535 | |||
Food & Staples Retailing (3.5%) | |||
Fresh Market, Inc.* | 18,200 | 1,050 | |
PriceSmart, Inc. | 22,700 | 1,660 | |
United Natural Foods, Inc.* | 24,700 | 1,420 | |
4,130 | |||
Food Products (1.3%) | |||
Smart Balance, Inc.* | 132,000 | 1,530 | |
Health Care Equipment & Supplies (6.8%) | |||
Abaxis, Inc.* | 33,400 | 1,252 | |
Align Technology, Inc.* | 50,500 | 1,714 | |
Cyberonics, Inc.* | 42,700 | 2,132 | |
ICU Medical, Inc.* | 25,400 | 1,410 | |
NuVasive, Inc.* | 69,800 | 1,471 | |
7,979 | |||
Health Care Providers & Services (7.7%) | |||
Air Methods Corp.* | 14,287 | 1,665 | |
Centene Corp.* | 39,100 | 1,588 | |
IPC The Hospitalist Co., Inc.* | 26,400 | 1,167 | |
MWI Veterinary Supply, Inc.* | 12,100 | 1,220 | |
Team Health Holdings, Inc.* | 47,100 | 1,345 | |
U.S. Physical Therapy, Inc. | 77,800 | 2,020 | |
9,005 | |||
Hotels, Restaurants & Leisure (2.6%) | |||
BJ's Restaurants, Inc.* | 36,900 | 1,515 | |
Orient-Express Hotels Ltd. Class A* | 175,353 | 1,541 | |
3,056 | |||
Internet & Catalog Retail (1.2%) | |||
HSN, Inc. | 31,300 | 1,409 | |
Internet Software & Services (4.0%) | |||
Cornerstone OnDemand, Inc.* | 65,900 | 1,767 | |
CoStar Group, Inc.* | 20,900 | 1,698 | |
Liquidity Services, Inc.* | 24,000 | 1,257 | |
4,722 | |||
IT Services (3.8%) | |||
Cardtronics, Inc.* | 46,100 | 1,302 | |
CoreLogic, Inc.* | 58,000 | 1,427 | |
InterXion Holding NV* | 89,400 | 1,707 | |
4,436 | |||
Machinery (2.7%) | |||
Actuant Corp. Class A | 61,100 | 1,718 | |
Chart Industries, Inc.* | 19,900 | 1,389 | |
3,107 | |||
Media (1.4%) | |||
Lions Gate Entertainment Corp.* | 107,000 | 1,581 | |
Oil, Gas & Consumable Fuels (3.9%) | |||
Carrizo Oil & Gas, Inc.* | 46,100 | 1,164 | |
Kodiak Oil & Gas Corp.* | 148,900 | 1,331 | |
Oasis Petroleum, Inc.* | 70,400 | 2,065 | |
4,560 | |||
Pharmaceuticals (2.7%) | |||
Akorn, Inc.* | 142,000 | 1,965 | |
Jazz Pharmaceuticals PLC* | 25,000 | 1,138 | |
3,103 | |||
Road & Rail (1.4%) | |||
Old Dominion Freight Line, Inc.* | 37,914 | 1,698 | |
Semiconductors & Semiconductor Equipment (3.4%) | |||
Cavium, Inc.* | 69,300 | 2,238 | |
Mellanox Technologies Ltd.* | 14,900 | 1,705 | |
3,943 | |||
Software (13.6%) | |||
Allot Communications Ltd.* | 46,500 | 1,229 | |
Aspen Technology, Inc.* | 81,600 | 1,989 |
See Notes to Schedule of Investments
133
Number of Shares | Value† (000's)z | ||
CommVault Systems, Inc.* | 23,800 | $1,200 | |
Concur Technologies, Inc.* | 36,800 | 2,664 | |
Guidance Software, Inc.* | 112,700 | 1,182 | |
NetSuite, Inc.* | 28,400 | 1,615 | |
QLIK Technologies, Inc.* | 76,200 | 1,612 | |
Sourcefire, Inc.* | 24,600 | 1,277 | |
Ultimate Software Group, Inc.* | 31,600 | 3,134 | |
15,902 | |||
Specialty Retail (9.6%) | |||
Cabela's, Inc.* | 43,200 | 2,074 | |
Chico's FAS, Inc. | 125,800 | 2,383 | |
Hibbett Sports, Inc.* | 24,300 | 1,410 | |
Tractor Supply Co. | 21,900 | 2,091 | |
Ulta Salon Cosmetics &Fragrance, Inc. | 22,300 | 2,096 | |
Vitamin Shoppe, Inc.* | 22,000 | 1,180 | |
11,234 | |||
Textiles, Apparel & Luxury Goods (4.4%) | |||
Movado Group, Inc. | 53,300 | 1,874 | |
Oxford Industries, Inc. | 37,200 | 2,029 | |
Warnaco Group, Inc.* | 25,400 | 1,306 | |
5,209 | |||
Trading Companies & Distributors (1.8%) | |||
Watsco, Inc. | 27,700 | 2,090 | |
Total Common Stocks (Cost $103,016) | 114,775 | ||
Short-Term Investments (0.8%) | |||
State Street Institutional Liquid Reserves Fund Institutional Class (Cost $963) | 962,542 | 963 | |
Total Investments## (98.9%) (Cost $103,979) | 115,738 | ||
Cash, receivables and other assets, less liabilities (1.1%) | 1,334 | ||
Total Net Assets (100.0%) | $117,072 |
See Notes to Schedule of Investments
134
Schedule of Investments Socially Responsive Fund
TOP TEN EQUITY HOLDINGS | |||||||||
1 | Danaher Corp. | 4.8 | % | ||||||
2 | Altera Corp. | 4.6 | % | ||||||
3 | Google, Inc. Class A | 4.5 | % | ||||||
4 | Texas Instruments, Inc. | 4.1 | % | ||||||
`5 | Newfield Exploration Co. | 3.9 | % | ||||||
6 | BG Group PLC | 3.9 | % | ||||||
7 | Progressive Corp. | 3.8 | % | ||||||
8 | Unilever NV | 3.7 | % | ||||||
9 | Procter & Gamble Co. | 3.5 | % | ||||||
10 | Scripps Networks Interactive, Inc. Class A | 3.4 | % |
Number of Shares | Value† (000's)z | ||
Common Stocks (97.8%) | |||
Capital Markets (5.7%) | |||
BlackRock, Inc. | 182,060 | $32,110 | |
Charles Schwab Corp. | 2,408,489 | 32,491 | |
Lazard Ltd. Class A | 1,401,700 | 39,934 | |
104,535 | |||
Chemicals (1.8%) | |||
Ecolab, Inc. | 518,344 | 33,190 | |
Commercial Services & Supplies (1.7%) | |||
Herman Miller, Inc. | 1,567,000 | 30,651 | |
Consumer Finance (2.2%) | |||
American Express Co. | 690,050 | 40,230 | |
Diversified Financial Services (3.2%) | |||
CME Group, Inc. | 523,090 | 28,718 | |
IntercontinentalExchange, Inc.* | 227,047 | 31,037 | |
59,755 | |||
Electronic Equipment, Instruments & Components (2.7%) | |||
National Instruments Corp. | 1,943,452 | 50,063 | |
Food Products (9.6%) | |||
J.M. Smucker Co. | 577,035 | 49,031 | |
McCormick & Co.,Inc. | 975,470 | 59,933 | |
Unilever NV | 1,967,940 | 68,445 | |
177,409 | |||
Health Care Equipment & Supplies (6.3%) | |||
Becton, Dickinson & Co. | 744,605 | 56,575 | |
Covidien PLC | 1,052,960 | 59,019 | |
115,594 | |||
Household Products (3.5%) | |||
Procter & Gamble Co. | 964,575 | 64,810 | |
Industrial Conglomerates (8.0%) | |||
3M Co. | 638,009 | 59,079 | |
Danaher Corp. | 1,635,500 | 87,614 | |
146,693 | |||
Industrial Gases (1.9%) | |||
Praxair, Inc. | 324,745 | 34,261 | |
Insurance (3.8%) | |||
Progressive Corp. | 3,557,565 | 69,479 | |
Internet Software & Services (4.5%) | |||
Google, Inc. Class A* | 120,535 | 82,577 | |
IT Services (1.6%) | |||
MasterCard, Inc. Class A | 71,048 | 30,046 | |
Machinery (2.5%) | |||
Pall Corp. | 830,145 | 46,081 | |
Media (5.4%) | |||
Comcast Corp. Class A Special | 1,115,680 | 36,673 | |
Scripps Networks Interactive, Inc. Class A | 1,073,255 | 63,429 | |
100,102 | |||
Multiline Retail (3.0%) | |||
Target Corp. | 862,690 | 55,290 | |
Oil, Gas & Consumable Fuels (13.1%) | |||
BG Group PLC | 3,519,229 | 71,974 | |
Cimarex Energy Co. | 887,504 | 50,774 | |
Newfield Exploration Co.* | 2,211,475 | 72,160 | |
Noble Energy, Inc. | 528,980 | 46,497 | |
241,405 | |||
Pharmaceuticals (3.2%) | |||
Roche Holding AG | 321,271 | 58,486 | |
Professional Services (0.9%) | |||
ICF International, Inc.* | 775,870 | 17,100 | |
Road & Rail (0.9%) | |||
J.B. Hunt Transport Services, Inc. | 325,400 | 17,064 | |
Semiconductors & Semiconductor Equipment (8.6%) | 2,250,881 | 84,025 | |
Altera Corp. Texas Instruments, Inc. | 2,601,550 | 75,549 | |
159,574 | |||
Specialty Chemicals (0.8%) | |||
Novozymes A/S | 505,440 | 14,018 | |
Specialty Retail (0.9%) | |||
O'Reilly Automotive, Inc.* | 204,200 | 17,347 | |
Trading Companies & Distributors (2.0%) | |||
W.W. Grainger, Inc. | 175,415 | 36,128 | |
Total Common Stocks (Cost $1,559,562) | 1,801,888 | ||
Short-Term Investments (1.6%) | |||
State Street Institutional Treasury Money Market Fund Institutional Class (Cost $28,735) | 28,735,341 | 28,735 | |
Principal Amount | |||
Certificates of Deposit (0.0%) | |||
Carver Federal Savings, 0.50%, due 9/24/12 | $100,000 | 100 | |
Self Help Credit Union, 0.50%,due 10/29/12 | 250,000 | 250 | |
Self Help Credit Union, 0.50%,due 11/16/12 | 250,000 | 250 | |
Total Certificates of Deposit# (Cost $600) | 600 | ||
Total Investments## (99.4%) (Cost $1,588,897) | 1,831,223 | ||
Cash, receivables and other assets, less liabilities (0.6%) | 11,679 | ||
Total Net Assets (100.0%) | $1,842,902 |
See Notes to Schedule of Investments
135
Schedule of Investments Value Fund
TOP TEN EQUITY HOLDINGS | |||||||||
1 | Exxon Mobil Corp. | 5.3 | % | ||||||
2 | J.P. Morgan Chase & Co. | 3.6 | % | ||||||
3 | Wells Fargo & Co. | 3.5 | % | ||||||
4 | Goldman Sachs Group, Inc. | 3.4 | % | ||||||
5 | Citigroup, Inc. | 3.1 | % | ||||||
6 | Range Resources Corp. | 3.1 | % | ||||||
7 | General Electric Co. | 3.0 | % | ||||||
8 | American International Group, Inc. | 2.8 | % | ||||||
9 | Johnson & Johnson | 2.4 | % | ||||||
10 | Freeport-McMoRan Copper & Gold, Inc. | 2.1 | % |
Number of Shares | Value† (000's)z | |||
Common Stocks (97.2%) | ||||
Aerospace & Defense (0.6%) | ||||
Boeing Co. | 391 | $28 | ||
Air Freight & Logistics (1.2%) | ||||
FedEx Corp. | 598 | 52 | ||
Airlines (0.8%) | ||||
Southwest Airlines Co. | 4,061 | 36 | ||
Automobiles (0.8%) | ||||
Ford Motor Co. | 3,897 | 36 | ||
Beverages (1.3%) | ||||
Dr Pepper Snapple Group, Inc. | 521 | 23 | ||
PepsiCo, Inc. | 419 | 31 | ||
54 | ||||
Capital Markets (7.8%) | ||||
Bank of New York Mellon Corp. | 2,809 | 63 | ||
Charles Schwab Corp. | 3,268 | 44 | ||
Goldman Sachs Group, Inc. | 1,378 | 146 | ||
Invesco Ltd. | 1,692 | 40 | ||
Legg Mason, Inc. | 763 | 19 | ||
Morgan Stanley | 1,543 | 23 | ||
335 | ||||
Chemicals (3.6%) | ||||
LyondellBasell Industries NV Class A | 1,316 | 64 | ||
Monsanto Co. | 721 | 63 | ||
Potash Corp. of Saskatchewan, Inc. | 457 | 19 | ||
WR Grace & Co.* | 177 | 10 | ||
156 | ||||
Commercial Banks (6.4%) | ||||
Regions Financial Corp. | 5,476 | 38 | ||
SunTrust Banks, Inc. | 671 | 17 | ||
U.S. Bancorp | 1,524 | 51 | ||
Wells Fargo & Co. | 4,425 | 151 | ||
Zions Bancorp | 1,065 | 20 | ||
277 | ||||
Communications Equipment (1.5%) | ||||
Cisco Systems, Inc. | 3,282 | 63 | ||
Computers & Peripherals (1.1%) | ||||
Hewlett-Packard Co. | 1,448 | 25 | ||
SanDisk Corp.* | 543 | 22 | ||
47 | ||||
Consumer Finance (0.4%) | ||||
Discover Financial Services | 461 | 18 | ||
Diversified Financial Services (8.3%) | ||||
Bank of America Corp. | 6,269 | 50 | ||
Citigroup, Inc. | 4,514 | 134 | ||
J.P. Morgan Chase &Co. | 4,131 | 154 | ||
Moody's Corp. | 460 | 18 | ||
356 | ||||
Diversified Telecommunication Services (1.1%) | ||||
AT&T, Inc. | 1,258 | 46 | ||
Electric Utilities (0.7%) | ||||
FirstEnergy Corp. | 433 | 19 | ||
PPL Corp. | 321 | 9 | ||
28 | ||||
Energy Equipment & Services (4.5%) | ||||
Baker Hughes, Inc. | 475 | 22 | ||
Diamond Offshore Drilling, Inc. | 826 | 55 | ||
McDermott International, Inc.* | 1,765 | 20 | ||
Rowan Cos. PLC* | 414 | 14 | ||
Schlumberger Ltd. | 1,116 | 81 | ||
192 | ||||
Food Products (0.5%) | ||||
Archer-Daniels-Midland Co. | 737 | 20 | ||
Health Care Equipment & | ||||
Supplies (1.3%) | ||||
Boston Scientific Corp.* | 6,644 | 36 | ||
Zimmer Holdings, Inc. | 354 | 22 | ||
58 | ||||
Health Care Providers & Services (2.7%) | ||||
Aetna, Inc. | 1,053 | 40 | ||
Cardinal Health, Inc. | 992 | 39 | ||
Coventry Health Care, Inc. | 924 | 39 | ||
118 | ||||
Hotels, Restaurants & Leisure (1.8%) | ||||
Carnival Corp. | 2,207 | 77 | ||
Household Products (0.6%) | ||||
Colgate-Palmolive Co. | 235 | 25 | ||
Industrial Conglomerates (3.0%) | ||||
General Electric Co. | 6,242 | 129 | ||
Insurance (6.7%) | ||||
AFLAC, Inc. | 413 | 19 | ||
American International Group, Inc.* | 3,539 | 122 | ||
Berkshire Hathaway, Inc. Class B* | 515 | 43 | ||
Lincoln National Corp. | 2,577 | 60 | ||
MetLife, Inc. | 307 | 10 | ||
Reinsurance Group of America, Inc. | 612 | 36 | ||
290 | ||||
Machinery (6.1%) | ||||
Caterpillar, Inc. | 800 | 68 | ||
Cummins, Inc. | 564 | 55 | ||
Deere & Co. | 349 | 26 | ||
Dover Corp. | 847 | 49 | ||
Joy Global, Inc. | 1,204 | 64 | ||
262 | ||||
Media (2.3%) | ||||
Comcast Corp. | ||||
Class A | 1,243 | 42 | ||
Gannett Co., Inc. | 862 | 13 | ||
News Corp. Class B | 899 | 21 | ||
Walt Disney Co. | 457 | 23 | ||
99 | ||||
Metals & Mining (6.4%) | ||||
BHP Billiton Ltd. ADR | 977 | 64 | ||
Freeport-McMoRan Copper & Gold, Inc. | 2,531 | 91 | ||
Newmont Mining Corp. | 1,392 | 71 | ||
Nucor Corp. | 540 | 20 | ||
United States Steel Corp. | 1,315 | 26 | ||
Walter Energy, Inc. | 164 | 5 | ||
277 |
See Notes to Schedule of Investments
136
Number of Shares | Value† (000's)z | |||
Multiline Retail (2.1%) | ||||
J.C. Penney Co., Inc. | 1,191 | $31 | ||
Target Corp. | 959 | 61 | ||
92 | ||||
Oil, Gas & Consumable Fuels (13.7%) | ||||
Anadarko Petroleum Corp. | 567 | 39 | ||
Cabot Oil & Gas Corp. | 505 | 21 | ||
Chevron Corp. | 766 | 86 | ||
CONSOL Energy, Inc. | 984 | 30 | ||
Devon Energy Corp. | 710 | 41 | ||
Exxon Mobil Corp. | 2,599 | 227 | ||
Murphy Oil Corp. | 305 | 16 | ||
Range Resources Corp. | 2,028 | 132 | ||
592 | ||||
Pharmaceuticals (5.1%) | ||||
Johnson & Johnson | 1,527 | 103 | ||
Merck & Co., Inc. | 743 | 32 | ||
Pfizer, Inc. | 3,600 | 86 | ||
221 | ||||
Road & Rail (1.0%) | ||||
CSX Corp. | 1,860 | 42 | ||
Heartland Express, Inc. | 137 | 2 | ||
44 | ||||
Semiconductors & Semiconductor Equipment (1.1%) | ||||
Analog Devices, Inc. | 13 | 1 | ||
Intel Corp. | 1,927 | 47 | ||
48 | ||||
Software (1.6%) | ||||
Microsoft Corp. | 1,970 | 61 | ||
Oracle Corp. | 311 | 10 | ||
71 | ||||
Specialty Retail (0.8%) | ||||
Urban Outfitters, Inc.* | 900 | 34 | ||
Wireless Telecommunication Services (0.3%) | ||||
Sprint Nextel Corp.* | 2,844 | 14 | ||
Total Common Stocks (Cost $4,053) | 4,195 | |||
Short-Term Investments (4.2%) | ||||
State Street Institutional Treasury Money Market Fund Institutional Class(Cost $181) | 181,210 | 181 | ||
Total Investments## (101.4%) (Cost $4,234) | 4,376 | |||
Liabilities, less cash, receivables and other assets [(1.4%)] | (62 | ) | ||
Total Net Assets (100.0%) | $4,314 |
See Notes to Schedule of Investments
137
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") (formerly, Neuberger Berman Partners Fund), Neuberger Berman Mid Cap Growth Fund ("Mid Cap Growth"), Neuberger Berman Mid Cap Intrinsic Value Fund ("Mid Cap Intrinsic Value") (formerly, Neuberger Berman Regency Fund), Neuberger Berman Multi-Cap Opportunities Fund ("Multi-Cap Opportunities"), Neuberger Berman Real Estate Fund ("Real Estate"), Neuberger Berman Select Equities Fund ("Select Equities"), Neuberger Berman Small Cap Growth Fund ("Small Cap Growth"), Neuberger Berman Socially Responsive Fund ("Socially Responsive") and Neuberger Berman Value Fund ("Value") (formerly, Neuberger Berman Large Cap Value Fund), (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 and written 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 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 |
See Notes to Financial Statements
138
Notes to Schedule of Investments (cont'd)
quality, coupon, maturity and type; indications as to values from dealers; and general market conditions (generally Level 2 inputs). 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. 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 (Level 2 inputs). If a valuation is not available from an independent pricing service, or if Management has reason to believe that the valuation received does not represent the amount a Fund might reasonably expect to receive on a current sale in an orderly transaction, the applicable Fund seeks to obtain quotations from principal market makers (generally considered Level 3 inputs). If such quotations are not readily available, the security is valued using methods the Neuberger Berman 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 or on days when foreign markets are closed and U.S. markets are open. In each of these events, Interactive will provide adjusted prices for certain foreign equity securities using a statistical analysis of historical correlations of multiple factors (Level 2 inputs). In the absence of precise information about the market values of these foreign securities as of the close of the New York Stock Exchange, the Board has determined on the basis of available data that prices adjusted in this way are likely to be closer to the prices a fund could realize on a current sale than are the prices of those securities established at the close of the foreign markets in which the securities primarily trade. Fair value prices are necessarily estimates, and there is no assurance that such a price will be at or close to the price at which the security is next quoted or next trades. |
See Notes to Financial Statements
139
Notes to Schedule of Investments (cont'd)
The following is a summary, categorized by Level, of inputs used to value the Funds' investments as of August 31, 2012:
Asset Valuation Inputs (000's omitted) | Level 1 | Level 2 | Level 3§§ | Total | |||||||||||||
Emerging Markets Equity | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks§ | |||||||||||||||||
Brazil | $ | 16,643 | $ | — | $ | 0 | $ | 16,643 | |||||||||
Chile | 1,773 | — | — | 1,773 | |||||||||||||
China | 33,689 | — | — | 33,689 | |||||||||||||
Colombia | 4,952 | — | — | 4,952 | |||||||||||||
Czech Republic | 1,895 | — | — | 1,895 | |||||||||||||
India | 13,164 | — | — | 13,164 | |||||||||||||
Indonesia | 4,160 | — | — | 4,160 | |||||||||||||
Israel | — | 1,671 | — | 1,671 | |||||||||||||
Korea | 16,946 | 1,451 | — | 18,397 | |||||||||||||
Malaysia | — | 4,607 | — | 4,607 | |||||||||||||
Mexico | 7,798 | — | — | 7,798 | |||||||||||||
Nigeria | 1,752 | — | — | 1,752 | |||||||||||||
Peru | 1,736 | — | — | 1,736 | |||||||||||||
Philippines | 2,344 | — | — | 2,344 | |||||||||||||
Qatar | — | 1,506 | — | 1,506 | |||||||||||||
Russia | 10,784 | — | — | 10,784 | |||||||||||||
South Africa | 8,565 | — | — | 8,565 | |||||||||||||
Taiwan, Province of China | 6,925 | — | — | 6,925 | |||||||||||||
Thailand | 5,205 | — | — | 5,205 | |||||||||||||
Turkey | 4,359 | — | — | 4,359 | |||||||||||||
United Arab Emirates | 1,948 | — | — | 1,948 | |||||||||||||
United Kingdom | 8,919 | — | — | 8,919 | |||||||||||||
Total Common Stocks | 153,557 | 9,235 | 0 | 162,792 | |||||||||||||
Short-Term Investments | — | 4,124 | — | 4,124 | |||||||||||||
Total Investments | 153,557 | 13,359 | 0 | 166,916 | |||||||||||||
Equity Income | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks | |||||||||||||||||
Aerospace & Defense | 10,521 | — | — | 10,521 | |||||||||||||
Beverages | 15,916 | — | — | 15,916 | |||||||||||||
Capital Markets | 33,775 | — | — | 33,775 | |||||||||||||
Chemicals | — | 36,936 | — | 36,936 | |||||||||||||
Communications Equipment | 13,070 | — | — | 13,070 |
See Notes to Financial Statements
140
Notes to Schedule of Investments (cont'd)
(000's omitted) | Level 1 | Level 2 | Level 3§§ | Total | |||||||||||||
Diversified Financial Services | $ | 7,262 | $ | — | $ | — | $ | 7,262 | |||||||||
Diversified Telecommunication Services | 117,251 | — | — | 117,251 | |||||||||||||
Electric Utilities | 180,347 | — | — | 180,347 | |||||||||||||
Food Products | 47,683 | — | — | 47,683 | |||||||||||||
Gas Utilities | 25,318 | — | — | 25,318 | |||||||||||||
Household Durables | 19,570 | — | — | 19,570 | |||||||||||||
Machinery | 2,767 | — | — | 2,767 | |||||||||||||
Media | 37,574 | 18,346 | — | 55,920 | |||||||||||||
Metals & Mining | 153,007 | — | — | 153,007 | |||||||||||||
Multi-Utilities | 196,739 | — | — | 196,739 | |||||||||||||
Oil, Gas & Consumable Fuels | 193,786 | — | — | 193,786 | |||||||||||||
Pharmaceuticals | 174,434 | — | — | 174,434 | |||||||||||||
Real Estate Investment Trusts | 470,968 | — | — | 470,968 | |||||||||||||
Semiconductors & Semiconductor Equipment | 77,322 | — | — | 77,322 | |||||||||||||
Thrifts & Mortgage Finance | 36,412 | — | — | 36,412 | |||||||||||||
Tobacco | 31,434 | — | — | 31,434 | |||||||||||||
Transportation Infrastructure | 23,574 | — | — | 23,574 | |||||||||||||
Water Utilities | 25,150 | — | — | 25,150 | |||||||||||||
Wireless Telecommunication Services | 123,439 | — | — | 123,439 | |||||||||||||
Total Common Stocks | 2,017,319 | 55,282 | — | 2,072,601 | |||||||||||||
Convertible Preferred Stocks | 11,355 | — | — | 11,355 | |||||||||||||
Convertible Bonds | — | 357,130 | — | 357,130 | |||||||||||||
Short-Term Investments | — | 122,852 | — | 122,852 | |||||||||||||
Total Investments | 2,028,674 | 535,264 | — | 2,563,938 | |||||||||||||
Focus | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks§ | 555,849 | — | — | 555,849 | |||||||||||||
Short-Term Investments | — | 6,340 | — | 6,340 | |||||||||||||
Total Investments | 555,849 | 6,340 | — | 562,189 | |||||||||||||
Genesis | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks | |||||||||||||||||
Air Freight & Logistics | 58,721 | — | — | 58,721 | |||||||||||||
Auto Components | 56,508 | — | — | 56,508 | |||||||||||||
Beverages | 99,673 | — | — | 99,673 | |||||||||||||
Building Products | 14,382 | — | — | 14,382 | |||||||||||||
Capital Markets | 49,176 | — | — | 49,176 | |||||||||||||
Chemicals | 621,201 | — | — | 621,201 | |||||||||||||
Commercial Banks | 368,049 | — | — | 368,049 | |||||||||||||
Commercial Services & Supplies | 581,398 | — | — | 581,398 |
See Notes to Financial Statements
141
Notes to Schedule of Investments (cont'd)
(000's omitted) | Level 1 | Level 2 | Level 3§§ | Total | |||||||||||||
Communications Equipment | $ | 74,851 | $ | — | $ | — | $ | 74,851 | |||||||||
Containers & Packaging | 370,146 | — | — | 370,146 | |||||||||||||
Distributors | 105,968 | — | — | 105,968 | |||||||||||||
Diversified Consumer Services | 29,911 | — | — | 29,911 | |||||||||||||
Electrical Equipment | 11,949 | — | — | 11,949 | |||||||||||||
Electronic Equipment, Instruments & Components | 162,486 | — | — | 162,486 | |||||||||||||
Energy Equipment & Services | 485,198 | — | — | 485,198 | |||||||||||||
Food & Staples Retailing | 201,794 | — | — | 201,794 | |||||||||||||
Food Products | 243,732 | — | — | 243,732 | |||||||||||||
Gas Utilities | 278,041 | — | — | 278,041 | |||||||||||||
Health Care Equipment & Supplies | 764,257 | — | — | 764,257 | |||||||||||||
Health Care Providers & Services | 558,344 | — | — | 558,344 | |||||||||||||
Health Care Technology | 37,591 | — | — | 37,591 | |||||||||||||
Hotels, Restaurants & Leisure | 157,098 | — | — | 157,098 | |||||||||||||
Household Durables | 29,371 | — | — | 29,371 | |||||||||||||
Household Products | 340,029 | — | — | 340,029 | |||||||||||||
Industrial Conglomerates | 108,857 | — | — | 108,857 | |||||||||||||
Insurance | 376,054 | — | — | 376,054 | |||||||||||||
IT Services | 170,461 | — | — | 170,461 | |||||||||||||
Leisure Equipment & Products | 184,991 | — | — | 184,991 | |||||||||||||
Life Sciences Tools & Services | 137,528 | — | — | 137,528 | |||||||||||||
Machinery | 1,194,683 | — | — | 1,194,683 | |||||||||||||
Metals & Mining | 389,863 | — | — | 389,863 | |||||||||||||
Office Electronics | 102,957 | — | — | 102,957 | |||||||||||||
Oil, Gas & Consumable Fuels | 582,782 | — | — | 582,782 | |||||||||||||
Paper & Forest Products | 24,537 | — | — | 24,537 | |||||||||||||
Professional Services | 60,751 | — | — | 60,751 | |||||||||||||
Real Estate Management & Development | 76,566 | — | — | 76,566 | |||||||||||||
Road & Rail | 18,076 | — | — | 18,076 | |||||||||||||
Semiconductors & Semiconductor Equipment | 137,855 | — | — | 137,855 | |||||||||||||
Software | 637,258 | 65,450 | — | 702,708 | |||||||||||||
Specialty Retail | 442,083 | — | — | 442,083 | |||||||||||||
Textiles, Apparel & Luxury Goods | 66,349 | — | — | 66,349 | |||||||||||||
Thrifts & Mortgage Finance | 134,544 | — | — | 134,544 | |||||||||||||
Trading Companies & Distributors | 206,183 | — | — | 206,183 | |||||||||||||
Water Utilities | 94,206 | — | — | 94,206 | |||||||||||||
Total Common Stocks | 10,846,458 | 65,450 | — | 10,911,908 | |||||||||||||
Exchange Traded Funds | 101,168 | — | — | 101,168 | |||||||||||||
Short-Term Investments | — | 552,820 | — | 552,820 | |||||||||||||
Total Investments | 10,947,626 | 618,270 | — | 11,565,896 |
See Notes to Financial Statements
142
Notes to Schedule of Investments (cont'd)
(000's omitted) | Level 1 | Level 2 | Level 3§§ | Total | |||||||||||||
Global Equity | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks§ | $ | 4,382 | $ | — | $ | — | $ | 4,382 | |||||||||
Short-Term Investments | — | 117 | — | 117 | |||||||||||||
Total Investments | 4,382 | 117 | — | 4,499 | |||||||||||||
Global Thematic Opportunities | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks§ | |||||||||||||||||
Australia | 501 | — | — | 501 | |||||||||||||
Brazil | 1,276 | — | — | 1,276 | |||||||||||||
Canada | 3,913 | — | — | 3,913 | |||||||||||||
Chile | 863 | — | — | 863 | |||||||||||||
China | 2,684 | — | — | 2,684 | |||||||||||||
France | 947 | — | — | 947 | |||||||||||||
Hong Kong | 2,816 | — | — | 2,816 | |||||||||||||
India | 1,006 | — | — | 1,006 | |||||||||||||
Indonesia | 2,087 | — | — | 2,087 | |||||||||||||
Israel | — | 891 | — | 891 | |||||||||||||
Japan | 2,304 | — | — | 2,304 | |||||||||||||
Malaysia | — | 803 | — | 803 | |||||||||||||
Netherlands | 904 | — | — | 904 | |||||||||||||
Philippines | 778 | — | — | 778 | |||||||||||||
Poland | 418 | — | — | 418 | |||||||||||||
South Africa | 897 | — | — | 897 | |||||||||||||
Switzerland | 2,024 | — | — | 2,024 | |||||||||||||
Thailand | — | 575 | — | 575 | |||||||||||||
United Kingdom | 438 | — | — | 438 | |||||||||||||
United States | 19,056 | — | — | 19,056 | |||||||||||||
Total Common Stocks | 42,912 | 2,269 | — | 45,181 | |||||||||||||
Exchange Traded Funds | 1,035 | — | — | 1,035 | |||||||||||||
Short-Term Investments | — | 4,233 | — | 4,233 | |||||||||||||
Total Investments | 43,947 | 6,502 | — | 50,449 | |||||||||||||
Guardian | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks§ | 1,103,550 | — | — | 1,103,550 | |||||||||||||
Short-Term Investments | — | 20,365 | — | 20,365 | |||||||||||||
Total Investments | 1,103,550 | 20,365 | — | 1,123,915 |
See Notes to Financial Statements
143
Notes to Schedule of Investments (cont'd)
(000's omitted) | Level 1 | Level 2 | Level 3§§ | Total | |||||||||||||
International | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks§ | |||||||||||||||||
Australia | $ | 4,996 | $ | — | $ | — | $ | 4,996 | |||||||||
Belgium | 4,831 | — | — | 4,831 | |||||||||||||
Brazil | — | — | 9 | 9 | |||||||||||||
Canada | 19,720 | — | — | 19,720 | |||||||||||||
Chile | 2,865 | — | — | 2,865 | |||||||||||||
China | 3,555 | — | — | 3,555 | |||||||||||||
Czech Republic | 1,418 | — | — | 1,418 | |||||||||||||
Denmark | 7,100 | — | — | 7,100 | |||||||||||||
France | 18,955 | — | — | 18,955 | |||||||||||||
Germany | 19,544 | — | — | 19,544 | |||||||||||||
Indonesia | 1,230 | — | — | 1,230 | |||||||||||||
Ireland | 1,572 | — | — | 1,572 | |||||||||||||
Israel | 1,176 | 466 | — | 1,642 | |||||||||||||
Japan | 37,301 | — | — | 37,301 | |||||||||||||
Korea | 7,315 | — | — | 7,315 | |||||||||||||
Netherlands | 13,645 | — | — | 13,645 | |||||||||||||
Nigeria | 1,830 | — | — | 1,830 | |||||||||||||
Norway | 4,788 | — | — | 4,788 | |||||||||||||
Russia | 1,640 | — | — | 1,640 | |||||||||||||
Singapore | 2,573 | — | — | 2,573 | |||||||||||||
Sweden | 7,174 | — | — | 7,174 | |||||||||||||
Switzerland | 27,211 | — | — | 27,211 | |||||||||||||
Turkey | 1,191 | — | — | 1,191 | |||||||||||||
United Kingdom | 49,147 | — | — | 49,147 | |||||||||||||
Total Common Stocks | 240,777 | 466 | 9 | 241,252 | |||||||||||||
Rights§ | 0 | — | — | 0 | |||||||||||||
Short-Term Investments | — | 8,453 | — | 8,453 | |||||||||||||
Total Investments | 240,777 | 8,919 | 9 | 249,705 | |||||||||||||
International Institutional | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks§ | |||||||||||||||||
Australia | 9,826 | — | — | 9,826 | |||||||||||||
Belgium | 9,525 | — | — | 9,525 | |||||||||||||
Canada | 38,889 | — | — | 38,889 | |||||||||||||
Chile | 5,646 | — | — | 5,646 | |||||||||||||
China | 7,015 | — | — | 7,015 | |||||||||||||
Czech Republic | 2,798 | — | — | 2,798 |
See Notes to Financial Statements
144
Notes to Schedule of Investments (cont'd)
(000's omitted) | Level 1 | Level 2 | Level 3§§ | Total | |||||||||||||
Denmark | $ | 13,999 | $ | — | $ | — | $ | 13,999 | |||||||||
France | 37,375 | — | — | 37,375 | |||||||||||||
Germany | 38,538 | — | — | 38,538 | |||||||||||||
Indonesia | 2,424 | — | — | 2,424 | |||||||||||||
Ireland | 3,131 | — | — | 3,131 | |||||||||||||
Israel | 2,328 | 939 | — | 3,267 | |||||||||||||
Japan | 73,482 | — | — | 73,482 | |||||||||||||
Korea | 14,432 | — | — | 14,432 | |||||||||||||
Netherlands | 26,905 | — | — | 26,905 | |||||||||||||
Nigeria | 3,580 | — | — | 3,580 | |||||||||||||
Norway | 9,373 | — | — | 9,373 | |||||||||||||
Russia | 3,234 | — | — | 3,234 | |||||||||||||
Singapore | 5,085 | — | — | 5,085 | |||||||||||||
Sweden | 14,145 | — | — | 14,145 | |||||||||||||
Switzerland | 53,643 | — | — | 53,643 | |||||||||||||
Turkey | 2,349 | — | — | 2,349 | |||||||||||||
United Kingdom | 96,914 | — | — | 96,914 | |||||||||||||
Total Common Stocks | 474,636 | 939 | — | 475,575 | |||||||||||||
Rights§ | 0 | — | — | 0 | |||||||||||||
Short-Term Investments | — | 9,944 | — | 9,944 | |||||||||||||
Total Investments | 474,636 | 10,883 | — | 485,519 | |||||||||||||
International Large Cap | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks§ | |||||||||||||||||
Australia | 3,420 | — | — | 3,420 | |||||||||||||
Belgium | 5,442 | — | — | 5,442 | |||||||||||||
Canada | 11,671 | — | — | 11,671 | |||||||||||||
Chile | 2,376 | — | — | 2,376 | |||||||||||||
China | 2,481 | — | — | 2,481 | |||||||||||||
Colombia | 1,377 | — | — | 1,377 | |||||||||||||
Czech Republic | 1,175 | — | — | 1,175 | |||||||||||||
Denmark | 7,297 | — | — | 7,297 | |||||||||||||
France | 17,028 | — | — | 17,028 | |||||||||||||
Germany | 18,441 | — | — | 18,441 | |||||||||||||
Indonesia | 1,014 | — | — | 1,014 | |||||||||||||
Israel | 1,434 | 569 | — | 2,003 | |||||||||||||
Japan | 21,414 | — | — | 21,414 | |||||||||||||
Korea | 7,464 | — | — | 7,464 | |||||||||||||
Netherlands | 11,466 | — | — | 11,466 | |||||||||||||
Norway | 1,875 | — | — | 1,875 |
See Notes to Financial Statements
145
Notes to Schedule of Investments (cont'd)
(000's omitted) | Level 1 | Level 2 | Level 3§§ | Total | |||||||||||||
Russia | $ | 1,313 | $ | — | $ | — | $ | 1,313 | |||||||||
Singapore | 2,113 | — | — | 2,113 | |||||||||||||
Sweden | 6,540 | — | — | 6,540 | |||||||||||||
Switzerland | 26,913 | — | — | 26,913 | |||||||||||||
United Kingdom | 43,392 | — | — | 43,392 | |||||||||||||
Total Common Stocks | 195,646 | 569 | — | 196,215 | |||||||||||||
Rights§ | 0 | — | — | 0 | |||||||||||||
Short-Term Investments | — | 5,151 | — | 5,151 | |||||||||||||
Total Investments | 195,646 | 5,720 | — | 201,366 | |||||||||||||
Intrinsic Value | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks§ | 142,551 | — | — | 142,551 | |||||||||||||
Short-Term Investments | — | 6,840 | — | 6,840 | |||||||||||||
Total Investments | 142,551 | 6,840 | — | 149,391 | |||||||||||||
Large Cap Disciplined Growth | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks§ | 694,282 | — | — | 694,282 | |||||||||||||
Short-Term Investments | — | 21,285 | — | 21,285 | |||||||||||||
Total Investments | 694,282 | 21,285 | — | 715,567 | |||||||||||||
Large Cap Value | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks§ | 1,589,555 | — | — | 1,589,555 | |||||||||||||
Short-Term Investments | — | 16,770 | — | 16,770 | |||||||||||||
Total Investments | 1,589,555 | 16,770 | — | 1,606,325 | |||||||||||||
Mid Cap Growth | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks§ | 617,120 | — | — | 617,120 | |||||||||||||
Short-Term Investments | — | 27,449 | — | 27,449 | |||||||||||||
Total Investments | 617,120 | 27,449 | — | 644,569 | |||||||||||||
Mid Cap Intrinsic Value | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks§ | 70,846 | — | — | 70,846 | |||||||||||||
Short-Term Investments | — | 2,213 | — | 2,213 | |||||||||||||
Total Investments | 70,846 | 2,213 | — | 73,059 | |||||||||||||
Multi-Cap Opportunities | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks§ | 454,947 | — | — | 454,947 | |||||||||||||
Short-Term Investments | — | 18,565 | — | 18,565 | |||||||||||||
Total Investments | 454,947 | 18,565 | — | 473,512 |
See Notes to Financial Statements
146
Notes to Schedule of Investments (cont'd)
(000's omitted) | Level 1 | Level 2 | Level 3§§ | Total | |||||||||||||
Real Estate | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks§ | $ | 606,676 | $ | — | $ | — | $ | 606,676 | |||||||||
Short-Term Investments | — | 12,808 | — | 12,808 | |||||||||||||
Total Investments | 606,676 | 12,808 | — | 619,484 | |||||||||||||
Select Equities | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks§ | 61,417 | — | — | 61,417 | |||||||||||||
Short-Term Investments | — | 6,413 | — | 6,413 | |||||||||||||
Total Investments | 61,417 | 6,413 | — | 67,830 | |||||||||||||
Small Cap Growth | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks§ | 114,775 | — | — | 114,775 | |||||||||||||
Short-Term Investments | — | 963 | — | 963 | |||||||||||||
Total Investments | 114,775 | 963 | — | 115,738 | |||||||||||||
Socially Responsive | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks§ | 1,801,888 | — | — | 1,801,888 | |||||||||||||
Short-Term Investments | — | 28,735 | — | 28,735 | |||||||||||||
Certificates of Deposit | — | 600 | — | 600 | |||||||||||||
Total Investments | 1,801,888 | 29,335 | — | 1,831,223 | |||||||||||||
Value | |||||||||||||||||
Investments: | |||||||||||||||||
Common Stocks§ | 4,195 | — | — | 4,195 | |||||||||||||
Short-Term Investments | — | 181 | — | 181 | |||||||||||||
Total Investments | 4,195 | 181 | — | 4,376 |
§ | The Schedule of Investments (and Summary Schedule of Investments by Industry for the international funds) provide information on the industry for the portfolio. |
See Notes to Financial Statements
147
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 9/1/11 | Accrued discounts/ (premiums) | Realized gain/loss | Change in unrealized appreciation/ (depreciation) | Purchases | Sales | Transfers in to Level 3 | Transfers out of Level 3 | Balance, as of 8/31/12 | Net change in unrealized appreciation/ (depreciation) from investments still held as of 8/31/12 | |||||||||||||||||||||||||||||||
Investments in Securities: | |||||||||||||||||||||||||||||||||||||||||
Emerging Markets Equity | |||||||||||||||||||||||||||||||||||||||||
Common Stocks | |||||||||||||||||||||||||||||||||||||||||
Brazilz | $ | 0 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 0 | $ | 0 | |||||||||||||||||||||
Total | 0 | — | — | — | — | — | — | — | 0 | 0 | |||||||||||||||||||||||||||||||
International | |||||||||||||||||||||||||||||||||||||||||
Common Stocks | |||||||||||||||||||||||||||||||||||||||||
Brazil | 12 | — | — | (3 | ) | — | — | — | — | 9 | (3 | ) | |||||||||||||||||||||||||||||
Total | 12 | — | — | (3 | ) | — | — | — | — | 9 | (3 | ) | |||||||||||||||||||||||||||||
Intrinsic Value | |||||||||||||||||||||||||||||||||||||||||
Rightsz | 0 | — | — | — | — | (0 | ) | — | — | — | — | ||||||||||||||||||||||||||||||
Total | 0 | — | — | — | — | (0 | ) | — | — | — | — |
Significant unobservable inputs developed by Management and used in the fair value measurement of the Funds' equity investments include book value of common stock. | |
Following is quantitative information about significant unobservable inputs: |
Asset class | Fair value at 8/31/12 (000's omitted) | Valuation techniques | Unobservable input | Range | ||||||||||||
Emerging Markets Equity | Common Stocks Brazil | $ | 0 | Market Pricing | Price To Book Value Ratio | 0.48–0.62 | ||||||||||
International | Common Stocks Brazil | 9 | Market Pricing | Price To Book Value Ratio | 0.48–0.62 |
As of the year ending August 31, 2012, certain foreign equity securities were transferred from Level 1 to Level 2 as a result of the Fund's procedures for valuing securities, as stated in the description of the valuation methods of foreign equity securities above. Based on beginning of period market values as of August 31, 2011, approximately $4,941,000 was transferred from Level 1 to Level 2 for Emerging Markets Equity. These transfers from Level 1 to Level 2 were due to foreign exchanges being closed as of August 31, 2012 and therefore no price being readily available. As of the year ending August 31, 2012, there were no transfers in to or out of Level 3. |
See Notes to Financial Statements
148
Notes to Schedule of Investments (cont'd)
Liability Valuation Inputs
The following is a summary, categorized by Level, of inputs used to value the Fund's derivatives as of August 31, 2012: |
(000's omitted) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Equity Income | |||||||||||||||||
Option Contracts | $ | (1,797 | ) | $ | — | $ | — | $ | (1,797 | ) |
# | At cost, which approximates market value. |
## | At August 31, 2012, 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 | $ | 163,435 | $ | 10,854 | $ | 7,373 | $ | 3,481 | |||||||||
Equity Income | 2,413,669 | 193,551 | 43,282 | 150,269 | |||||||||||||
Focus | 499,282 | 68,781 | 5,874 | 62,907 | |||||||||||||
Genesis | 7,333,036 | 4,359,225 | 126,365 | 4,232,860 | |||||||||||||
Global Equity | 4,412 | 254 | 167 | 87 | |||||||||||||
Global Thematic Opportunities | 50,408 | 2,722 | 2,681 | 41 | |||||||||||||
Guardian | 901,062 | 233,121 | 10,268 | 222,853 | |||||||||||||
International | 219,146 | 41,463 | 10,904 | 30,559 | |||||||||||||
International Institutional | 463,844 | 41,685 | 20,010 | 21,675 | |||||||||||||
International Large Cap | 186,739 | 24,946 | 10,319 | 14,627 | |||||||||||||
Intrinsic Value | 142,440 | 22,143 | 15,192 | 6,951 | |||||||||||||
Large Cap Disciplined Growth | 633,479 | 91,656 | 9,568 | 82,088 | |||||||||||||
Large Cap Value | 1,526,402 | 113,333 | 33,410 | 79,923 | |||||||||||||
Mid Cap Growth | 467,542 | 182,293 | 5,266 | 177,027 | |||||||||||||
Mid Cap Intrinsic Value | 68,143 | 8,199 | 3,283 | 4,916 | |||||||||||||
Multi-Cap Opportunities | 450,281 | 27,864 | 4,633 | 23,231 | |||||||||||||
Real Estate | 522,652 | 98,299 | 1,467 | 96,832 | |||||||||||||
Select Equities | 59,547 | 8,816 | 533 | 8,283 | |||||||||||||
Small Cap Growth | 104,650 | 11,717 | 629 | 11,088 | |||||||||||||
Socially Responsive | 1,589,160 | 280,828 | 38,765 | 242,063 | |||||||||||||
Value | 4,308 | 144 | 76 | 68 |
* | Security did not produce income during the last twelve months. |
‡‡ | At August 31, 2012, Equity Income had outstanding call and put options written as follows: |
Name of Issuer | Contracts | Exercise Price | Expiration Date | Market Value of Options | |||||||||||
Aqua America, Inc., Call | 500 | 25 | September 2012 | $ | (15,000 | ) | |||||||||
Boeing Co., Put | 500 | 60 | November 2012 | (29,000 | ) | ||||||||||
China Mobile Ltd. ADR, Call | 500 | 60 | December 2012 | (15,000 | ) | ||||||||||
China Mobile Ltd. ADR, Call | 500 | 65 | March 2013 | (15,000 | ) | ||||||||||
Deere & Co., Put | 500 | 60 | January 2013 | (62,000 | ) | ||||||||||
Franco Nevada Corp., Call | 500 | 55 | January 2013 | (100,000 | ) | ||||||||||
Freeport-McMoRan Copper & Gold, Inc., Put | 500 | 27 | February 2013 | (46,000 | ) |
See Notes to Financial Statements
149
Notes to Schedule of Investments (cont'd)
Name of Issuer | Contracts | Exercise Price | Expiration Date | Market Value of Options | ||||||||||||
HCP, Inc., Call | 500 | 50 | January 2013 | $ | (15,000 | ) | ||||||||||
Microsoft Corp., Put | 2,000 | 27 | January 2013 | (126,000 | ) | |||||||||||
Occidental Petroleum Corp., Put | 250 | 75 | November 2012 | (41,000 | ) | |||||||||||
Philip Morris International, Inc., Call | 250 | 95 | December 2012 | (40,000 | ) | |||||||||||
Philip Morris International, Inc., Call | 250 | 100 | January 2013 | (17,000 | ) | |||||||||||
Royal Gold, Inc., Call | 500 | 87.5 | January 2013 | (345,000 | ) | |||||||||||
Royal Gold, Inc., Call | 500 | 90 | January 2013 | (295,000 | ) | |||||||||||
Royal Gold, Inc., Call | 500 | 95 | January 2013 | (185,000 | ) | |||||||||||
Sanofi ADR, Call | 200 | 41 | December 2012 | (38,000 | ) | |||||||||||
Sanofi ADR, Call | 500 | 44 | March 2013 | (65,000 | ) | |||||||||||
Sempra Energy, Call | 500 | 72.5 | January 2013 | (10,000 | ) | |||||||||||
Statoil ASA ADR, Call | 500 | 27.5 | January 2013 | (40,000 | ) | |||||||||||
Statoil ASA ADR, Call | 500 | 27.5 | April 2013 | (63,000 | ) | |||||||||||
Ventas, Inc., Call | 350 | 65 | November 2012 | (71,000 | ) | |||||||||||
Weyerhaeuser Co., Call | 250 | 25 | October 2012 | (20,000 | ) | |||||||||||
Weyerhaeuser Co., Call | 500 | 26 | January 2013 | (57,000 | ) | |||||||||||
Weyerhaeuser Co., Call | 500 | 27 | January 2013 | (40,000 | ) | |||||||||||
Weyerhaeuser Co., Call | 500 | 28 | April 2013 | (47,000 | ) | |||||||||||
Total | $ | (1,797,000 | ) |
At August 31, 2012, Equity Income had deposited $15,356,250 in a segregated account to cover requirements on put options written. | |
ñ | Securities were purchased under Rule 144A of the Securities Act of 1933, as amended (the "1933 Act"), or are private placements and, unless registered under the 1933 Act or exempted from registration, may only be sold to qualified institutional investors. These securities have been deemed by the investment manager to be liquid. At August 31, 2012, these securities amounted to approximately $97,819,000 or 3.8% of net assets for Equity Income. |
Ñ | These securities have been deemed by the investment manager to be illiquid. At August 31, 2012, these securities amounted to approximately $0 or 0.0% of net assets for Emerging Markets Equity, approximately $2,659,000 or 1.1% of net assets for International and approximately $29,608,000 or 6.0% 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 | These securities have been deemed by the investment manager to be illiquid. Restricted security subject to restrictions on resale. Securities were purchased under Rule 144A of the 1933 Act or are private placements and, unless registered under the 1933 Act or exempted from registration, may only be sold to qualified institutional investors. |
At August 31, 2012, these securities amounted to approximately $65,450,000 or 0.6% of net assets for Genesis. |
(000's omitted) | Restricted Security | Acquisition Date | Acquisition Cost | Acquisition Cost Percentage of Net Assets as of Acquisition Date | Value as of August 31, 2012 | Fair Value Percentage of Net Assets as of August 31, 2012 | ||||||||||||||||||
Genesis | Constellation Software, Inc. | 6/11/2012 | $ | 56,725 | 0.5 | % | $ | 65,450 | 0.6 | % |
z | A zero balance may reflect actual amounts rounding to less than $1,000. |
^ | Affiliated issuer (see Note F of Notes to Financial Statements). |
‡ | Security had an event of default. |
± | See Note A-11 in the Notes to Financial Statements for the Funds' open derivatives at August 31, 2012. |
See Notes to Financial Statements
150
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, 2012 | August 31, 2012 | August 31, 2012 | August 31, 2012 | August 31, 2012 | |||||||||||||||||
Assets | |||||||||||||||||||||
Investments in securities, at value* (Notes A & F) —see Schedule of Investments: | |||||||||||||||||||||
Unaffiliated issuers | $ | 166,916 | $ | 2,563,938 | $ | 562,189 | $ | 6,832,834 | $ | 4,499 | |||||||||||
Affiliated issuers | — | — | — | 4,733,062 | — | ||||||||||||||||
166,916 | 2,563,938 | 562,189 | 11,565,896 | 4,499 | |||||||||||||||||
Cash | — | 5 | — | 8 | — | ||||||||||||||||
Foreign currency | 13 | 139 | — | — | 1 | ||||||||||||||||
Deposits with brokers for open option contracts | — | 15,356 | — | — | — | ||||||||||||||||
Dividends and interest receivable | 171 | 10,129 | 933 | 14,046 | 10 | ||||||||||||||||
Receivable for securities sold | 270 | 18,885 | 16,019 | 31,195 | — | ||||||||||||||||
Receivable for Fund shares sold | 354 | 9,800 | 17 | 10,015 | — | ||||||||||||||||
Receivable from Management—net (Note B) | 22 | — | — | — | 11 | ||||||||||||||||
Prepaid expenses and other assets | 42 | 155 | 72 | 507 | 24 | ||||||||||||||||
Total Assets | 167,788 | 2,618,407 | 579,230 | 11,621,667 | 4,545 | ||||||||||||||||
Liabilities | |||||||||||||||||||||
Options contracts written, at value** (Note A) | — | 1,797 | — | — | — | ||||||||||||||||
Payable for securities purchased | — | 2,604 | 15,085 | 18,590 | — | ||||||||||||||||
Payable for Fund shares redeemed | 33 | 4,299 | 541 | 12,165 | — | ||||||||||||||||
Payable to investment manager—net (Note B) | 143 | 1,017 | 253 | 6,466 | 3 | ||||||||||||||||
Payable to administrator—net (Note B) | — | 985 | 128 | 2,545 | — | ||||||||||||||||
Accrued expenses and other payables | 126 | 303 | 197 | 1,412 | 65 | ||||||||||||||||
Total Liabilities | 302 | 11,005 | 16,204 | 41,178 | 68 | ||||||||||||||||
Net Assets at value | $ | 167,486 | $ | 2,607,402 | $ | 563,026 | $ | 11,580,489 | $ | 4,477 | |||||||||||
Net Assets consist of: | |||||||||||||||||||||
Paid-in capital | $ | 184,560 | $ | 2,412,918 | $ | 504,945 | $ | 6,991,417 | $ | 4,525 | |||||||||||
Undistributed net investment income (loss) | 627 | — | 3,817 | — | — | ||||||||||||||||
Distributions in excess of net investment income | — | (1,593 | ) | — | — | (6 | ) | ||||||||||||||
Accumulated net realized gains (losses) on investments | (23,026 | ) | 15,480 | (10,221 | ) | 344,567 | (140 | ) | |||||||||||||
Net unrealized appreciation (depreciation) in value of investments | 5,325 | 180,597 | 64,485 | 4,244,505 | 98 | ||||||||||||||||
Net Assets at value | $ | 167,486 | $ | 2,607,402 | $ | 563,026 | $ | 11,580,489 | $ | 4,477 | |||||||||||
Net Assets | |||||||||||||||||||||
Investor Class | $ | — | $ | — | $ | 534,252 | $ | 2,256,016 | $ | — | |||||||||||
Trust Class | — | — | 14,974 | 3,037,572 | — | ||||||||||||||||
Advisor Class | — | — | 5,795 | 579,822 | — | ||||||||||||||||
Institutional Class | 161,681 | 1,213,638 | 6,943 | 5,707,079 | 4,335 | ||||||||||||||||
Class A | 4,141 | 1,012,335 | 747 | — | 96 | ||||||||||||||||
Class C | 1,406 | 380,377 | 315 | — | 46 | ||||||||||||||||
Class R3 | 258 | 1,052 | — | — | — |
See Notes to Financial Statements
151
GLOBAL THEMATIC OPPORTUNITIES FUND | GUARDIAN FUND | INTERNATIONAL FUND | INTERNATIONAL INSTITUTIONAL FUND | INTERNATIONAL LARGE CAP FUND | |||||||||||||||||
August 31, 2012 | August 31, 2012 | August 31, 2012 | August 31, 2012 | August 31, 2012 | |||||||||||||||||
Assets | |||||||||||||||||||||
Investments in securities, at value* (Notes A & F) —see Schedule of Investments: | |||||||||||||||||||||
Unaffiliated issuers | $ | 50,449 | $ | 1,123,915 | $ | 249,705 | $ | 485,519 | $ | 201,366 | |||||||||||
Affiliated issuers | — | — | — | — | — | ||||||||||||||||
50,449 | 1,123,915 | 249,705 | 485,519 | 201,366 | |||||||||||||||||
Cash | — | — | 104 | — | — | ||||||||||||||||
Foreign currency | 1 | — | 306 | 448 | 365 | ||||||||||||||||
Deposits with brokers for open option contracts | — | — | — | — | — | ||||||||||||||||
Dividends and interest receivable | 130 | 1,760 | 655 | 1,035 | 382 | ||||||||||||||||
Receivable for securities sold | 554 | 8,290 | — | 4,408 | — | ||||||||||||||||
Receivable for Fund shares sold | 2 | 499 | 84 | 824 | 237 | ||||||||||||||||
Receivable from Management—net (Note B) | 3 | — | — | 42 | — | ||||||||||||||||
Prepaid expenses and other assets | 30 | 150 | 33 | 30 | 54 | ||||||||||||||||
Total Assets | 51,169 | 1,134,614 | 250,887 | 492,306 | 202,404 | ||||||||||||||||
Liabilities | |||||||||||||||||||||
Options contracts written, at value** (Note A) | — | — | — | — | — | ||||||||||||||||
Payable for securities purchased | 523 | — | 111 | 246 | 136 | ||||||||||||||||
Payable for Fund shares redeemed | — | 519 | 78 | 16 | 3,436 | ||||||||||||||||
Payable to investment manager—net (Note B) | 37 | 482 | 178 | 351 | 93 | ||||||||||||||||
Payable to administrator—net (Note B) | — | 271 | 62 | — | 26 | ||||||||||||||||
Accrued expenses and other payables | 70 | 314 | 273 | 127 | 107 | ||||||||||||||||
Total Liabilities | 630 | 1,586 | 702 | 740 | 3,798 | ||||||||||||||||
Net Assets at value | $ | 50,539 | $ | 1,133,028 | $ | 250,185 | $ | 491,566 | $ | 198,606 | |||||||||||
Net Assets consist of: | |||||||||||||||||||||
Paid-in capital | $ | 53,703 | $ | 887,474 | $ | 400,413 | $ | 637,477 | $ | 244,890 | |||||||||||
Undistributed net investment income (loss) | 214 | 8,756 | — | 2,665 | 1,630 | ||||||||||||||||
Distributions in excess of net investment income | — | — | (421 | ) | — | — | |||||||||||||||
Accumulated net realized gains (losses) on investments | (3,692 | ) | 12,523 | (183,103 | ) | (171,506 | ) | (63,469 | ) | ||||||||||||
Net unrealized appreciation (depreciation) in value of investments | 314 | 224,275 | 33,296 | 22,930 | 15,555 | ||||||||||||||||
Net Assets at value | $ | 50,539 | $ | 1,133,028 | $ | 250,185 | $ | 491,566 | $ | 198,606 | |||||||||||
Net Assets | |||||||||||||||||||||
Investor Class | $ | — | $ | 939,574 | $ | 139,741 | $ | — | $ | — | |||||||||||
Trust Class | — | 113,488 | 105,895 | — | 14,235 | ||||||||||||||||
Advisor Class | — | 554 | — | — | — | ||||||||||||||||
Institutional Class | 49,758 | 59,986 | — | 491,566 | 171,995 | ||||||||||||||||
Class A | 637 | 17,629 | 4,337 | — | 8,261 | ||||||||||||||||
Class C | 144 | 1,279 | 212 | — | 3,680 | ||||||||||||||||
Class R3 | — | 518 | — | — | 435 |
152
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, 2012 | August 31, 2012 | August 31, 2012 | August 31, 2012 | August 31, 2012 | |||||||||||||||||
Shares Outstanding ($.001 par value; unlimited shares authorized) | |||||||||||||||||||||
Investor Class | — | — | 24,605 | 65,104 | — | ||||||||||||||||
Trust Class | — | — | 949 | 60,182 | — | ||||||||||||||||
Advisor Class | — | — | 537 | 20,401 | — | ||||||||||||||||
Institutional Class | 10,788 | 103,343 | 319 | 117,173 | 510 | ||||||||||||||||
Class A | 277 | 86,521 | 48 | — | 11 | ||||||||||||||||
Class C | 96 | 32,679 | 30 | — | 5 | ||||||||||||||||
Class R3 | 18 | 90 | — | — | — | ||||||||||||||||
Net Asset Value, offering and redemption price per share | |||||||||||||||||||||
Investor Class | $ | — | $ | — | $ | 21.71 | $ | 34.65 | $ | — | |||||||||||
Trust Class | — | — | 15.78 | 50.47 | — | ||||||||||||||||
Advisor Class | — | — | 10.79 | 28.42 | — | ||||||||||||||||
Institutional Class | 14.99 | 11.74 | 21.76 | 48.71 | 8.50 | ||||||||||||||||
Class R3 | 14.71 | 11.69 | — | — | — | ||||||||||||||||
Net Asset Value and redemption price per share | |||||||||||||||||||||
Class A | $ | 14.92 | $ | 11.70 | $ | 15.71 | $ | — | $ | 8.48 | |||||||||||
Offering Price per share | |||||||||||||||||||||
Class A‡ | $ | 15.83 | $ | 12.41 | $ | 16.67 | $ | — | $ | 9.00 | |||||||||||
Net Asset Value and offering price per share | |||||||||||||||||||||
Class C^ | $ | 14.61 | $ | 11.64 | $ | 10.62 | $ | — | $ | 8.41 | |||||||||||
*Cost of Investments: | |||||||||||||||||||||
Unaffiliated issuers | $ | 161,591 | $ | 2,382,980 | $ | 497,704 | $ | 4,120,574 | $ | 4,401 | |||||||||||
Affiliated issuers | — | — | — | 3,200,818 | — | ||||||||||||||||
Total cost of investments | $ | 161,591 | $ | 2,382,980 | $ | 497,704 | $ | 7,321,392 | $ | 4,401 | |||||||||||
Total cost of foreign currency | $ | 13 | $ | 139 | $ | — | $ | — | $ | 1 | |||||||||||
**Premium received from options written | $ | — | $ | 1,485 | $ | — | $ | — | $ | — |
‡ | On single retail sales of less than $50,000. On sales of $50,000 or more or in certain other circumstances described in the Fund's prospectus, offering price is reduced. |
^ | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
See Notes to Financial Statements
153
GLOBAL THEMATIC OPPORTUNITIES FUND | GUARDIAN FUND | INTERNATIONAL FUND | INTERNATIONAL INSTITUTIONAL FUND | INTERNATIONAL LARGE CAP FUND | |||||||||||||||||
August 31, 2012 | August 31, 2012 | August 31, 2012 | August 31, 2012 | August 31, 2012 | |||||||||||||||||
Shares Outstanding ($.001 par value; unlimited shares authorized) | |||||||||||||||||||||
Investor Class | — | 59,479 | 8,436 | — | — | ||||||||||||||||
Trust Class | — | 9,220 | 5,762 | — | 1,557 | ||||||||||||||||
Advisor Class | — | 40 | — | — | — | ||||||||||||||||
Institutional Class | 5,695 | 3,789 | — | 53,740 | 18,811 | ||||||||||||||||
Class A | 73 | 1,440 | 236 | — | 909 | ||||||||||||||||
Class C | 17 | 94 | 12 | — | 410 | ||||||||||||||||
Class R3 | — | 38 | — | — | 48 | ||||||||||||||||
Net Asset Value, offering and redemption price per share | |||||||||||||||||||||
Investor Class | $ | — | $ | 15.80 | $ | 16.56 | $ | — | $ | — | |||||||||||
Trust Class | — | 12.31 | 18.38 | — | 9.14 | ||||||||||||||||
Advisor Class | — | 13.91 | — | — | — | ||||||||||||||||
Institutional Class | 8.74 | 15.83 | — | 9.15 | 9.14 | ||||||||||||||||
Class R3 | — | 13.79 | — | — | 9.04 | ||||||||||||||||
Net Asset Value and redemption price per share | |||||||||||||||||||||
Class A | $ | 8.70 | $ | 12.24 | $ | 18.40 | $ | — | $ | 9.09 | |||||||||||
Offering Price per share | |||||||||||||||||||||
Class A‡ | $ | 9.23 | $ | 12.99 | $ | 19.52 | $ | — | $ | 9.64 | |||||||||||
Net Asset Value and offering price per share | |||||||||||||||||||||
Class C^ | $ | 8.63 | $ | 13.66 | $ | 18.30 | $ | — | $ | 8.98 | |||||||||||
*Cost of Investments: | |||||||||||||||||||||
Unaffiliated issuers | $ | 50,128 | $ | 899,631 | $ | 216,399 | $ | 462,573 | $ | 185,808 | |||||||||||
Affiliated issuers | — | — | — | — | — | ||||||||||||||||
Total cost of investments | $ | 50,128 | $ | 899,631 | $ | 216,399 | $ | 462,573 | $ | 185,808 | |||||||||||
Total cost of foreign currency | $ | 1 | $ | — | $ | 305 | $ | 447 | $ | 364 | |||||||||||
**Premium received from options written | $ | — | $ | — | $ | — | $ | — | $ | — |
154
Statements of Assets and Liabilities (cont'd)
Neuberger Berman Equity Funds
(000's omitted except per share amounts)
INTRINSIC VALUE FUND | LARGE CAP DISCIPLINED GROWTH FUND | LARGE CAP VALUE FUND | MID CAP GROWTH FUND | MID CAP INTRINSIC VALUE FUND | |||||||||||||||||
August 31, 2012 | August 31, 2012 | August 31, 2012 | August 31, 2012 | August 31, 2012 | |||||||||||||||||
Assets | |||||||||||||||||||||
Investments in securities, at value* (Notes A & F) —see Schedule of Investments: | |||||||||||||||||||||
Unaffiliated issuers | $ | 149,391 | $ | 715,567 | $ | 1,606,325 | $ | 644,569 | $ | 73,059 | |||||||||||
Affiliated issuers | — | — | — | — | — | ||||||||||||||||
149,391 | 715,567 | 1,606,325 | 644,569 | 73,059 | |||||||||||||||||
Cash | — | — | — | — | — | ||||||||||||||||
Foreign currency | — | — | — | — | — | ||||||||||||||||
Deposits with brokers for open option contracts | — | — | — | — | — | ||||||||||||||||
Dividends and interest receivable | 102 | 540 | 4,837 | 255 | 94 | ||||||||||||||||
Receivable for securities sold | 154 | 3,850 | 18,600 | — | — | ||||||||||||||||
Receivable for Fund shares sold | 109 | 1,300 | 210 | 934 | 13 | ||||||||||||||||
Receivable from Management—net (Note B) | — | — | — | — | — | ||||||||||||||||
Prepaid expenses and other assets | 27 | 53 | 139 | 78 | 47 | ||||||||||||||||
Total Assets | 149,783 | 721,310 | 1,630,111 | 645,836 | 73,213 | ||||||||||||||||
Liabilities | |||||||||||||||||||||
Options contracts written, at value** (Note A) | — | — | — | — | — | ||||||||||||||||
Payable for securities purchased | — | — | 27,438 | 4,215 | — | ||||||||||||||||
Payable for Fund shares redeemed | 128 | 528 | 8,726 | 246 | 28 | ||||||||||||||||
Payable to investment manager—net (Note B) | 106 | 321 | 689 | 282 | 19 | ||||||||||||||||
Payable to administrator—net (Note B) | 4 | 147 | 480 | 139 | 11 | ||||||||||||||||
Accrued expenses and other payables | 58 | 118 | 364 | 174 | 68 | ||||||||||||||||
Total Liabilities | 296 | 1,114 | 37,697 | 5,056 | 126 | ||||||||||||||||
Net Assets at value | $ | 149,487 | $ | 720,196 | $ | 1,592,414 | $ | 640,780 | $ | 73,087 | |||||||||||
Net Assets consist of: | |||||||||||||||||||||
Paid-in capital | $ | 142,289 | $ | 620,943 | $ | 1,525,516 | $ | 461,718 | $ | 73,332 | |||||||||||
Undistributed net investment income (loss) | (265 | ) | 2,292 | 20,872 | (2,110 | ) | 460 | ||||||||||||||
Distributions in excess of net investment income | — | — | — | — | — | ||||||||||||||||
Accumulated net realized gains (losses) on investments | (177 | ) | 6,640 | (53,198 | ) | 3,455 | (5,622 | ) | |||||||||||||
Net unrealized appreciation (depreciation) in value of investments | 7,640 | 90,321 | 99,224 | 177,717 | 4,917 | ||||||||||||||||
Net Assets at value | $ | 149,487 | $ | 720,196 | $ | 1,592,414 | $ | 640,780 | $ | 73,087 | |||||||||||
Net Assets | |||||||||||||||||||||
Investor Class | $ | — | $ | 17,800 | $ | 1,057,085 | $ | 347,937 | $ | 45,982 | |||||||||||
Trust Class | — | — | 209,559 | 39,948 | 18,356 | ||||||||||||||||
Advisor Class | — | — | 219,968 | 10,182 | — | ||||||||||||||||
Institutional Class | 134,217 | 601,604 | 102,970 | 174,156 | 4,363 | ||||||||||||||||
Class A | 8,371 | 67,090 | 2,046 | 63,176 | 3,759 | ||||||||||||||||
Class C | 6,899 | 33,372 | 167 | 2,414 | 430 | ||||||||||||||||
Class R3 | — | 330 | 619 | 2,967 | 197 |
See Notes to Financial Statements
155
MULTI-CAP OPPORTUNITIES FUND | REAL ESTATE FUND | SELECT EQUITIES FUND | SMALL CAP GROWTH FUND | SOCIALLY RESPONSIVE FUND | |||||||||||||||||
August 31, 2012 | August 31, 2012 | August 31, 2012 | August 31, 2012 | August 31, 2012 | |||||||||||||||||
Assets | |||||||||||||||||||||
Investments in securities, at value* (Notes A & F)— see Schedule of Investments: | |||||||||||||||||||||
Unaffiliated issuers | $ | 473,512 | $ | 619,484 | $ | 67,830 | $ | 115,738 | $ | 1,831,223 | |||||||||||
Affiliated issuers | — | — | — | — | — | ||||||||||||||||
473,512 | 619,484 | 67,830 | 115,738 | 1,831,223 | |||||||||||||||||
Cash | — | — | — | — | — | ||||||||||||||||
Foreign currency | — | — | — | — | — | ||||||||||||||||
Deposits with brokers for open option contracts | — | — | — | — | — | ||||||||||||||||
Dividends and interest receivable | 807 | 267 | 90 | 16 | 3,810 | ||||||||||||||||
Receivable for securities sold | 3 | — | 1,593 | 5,263 | 9,163 | ||||||||||||||||
Receivable for Fund shares sold | 2,423 | 3,917 | 50 | 90 | 2,232 | ||||||||||||||||
Receivable from Management—net (Note B) | — | — | — | — | — | ||||||||||||||||
Prepaid expenses and other assets | 24 | 76 | 18 | 52 | 119 | ||||||||||||||||
Total Assets | 476,769 | 623,744 | 69,581 | 121,159 | 1,846,547 | ||||||||||||||||
Liabilities | |||||||||||||||||||||
Options contracts written, at value** (Note A) | — | — | — | — | — | ||||||||||||||||
Payable for securities purchased | 7,397 | 1,457 | 1,353 | 3,792 | — | ||||||||||||||||
Payable for Fund shares redeemed | 307 | 323 | 177 | 105 | 2,061 | ||||||||||||||||
Payable to investment manager—net (Note B) | 222 | 408 | 32 | 83 | 746 | ||||||||||||||||
Payable to administrator—net (Note B) | 84 | 12 | 9 | 6 | 499 | ||||||||||||||||
Accrued expenses and other payables | 94 | 179 | 89 | 101 | 339 | ||||||||||||||||
Total Liabilities | 8,104 | 2,379 | 1,660 | 4,087 | 3,645 | ||||||||||||||||
Net Assets at value | $ | 468,665 | $ | 621,365 | $ | 67,921 | $ | 117,072 | $ | 1,842,902 | |||||||||||
Net Assets consist of: | |||||||||||||||||||||
Paid-in capital | $ | 437,646 | $ | 514,377 | $ | 56,448 | $ | 151,895 | $ | 1,625,115 | |||||||||||
Undistributed net investment income (loss) | 3,252 | — | — | (763 | ) | 14,229 | |||||||||||||||
Distributions in excess of net investment income | — | — | (11 | ) | — | — | |||||||||||||||
Accumulated net realized gains (losses) on investments | 2,577 | 7,805 | 3,201 | (45,819 | ) | (38,743 | ) | ||||||||||||||
Net unrealized appreciation (depreciation) in value of investments | 25,190 | 99,183 | 8,283 | 11,759 | 242,301 | ||||||||||||||||
Net Assets at value | $ | 468,665 | $ | 621,365 | $ | 67,921 | $ | 117,072 | $ | 1,842,902 | |||||||||||
Net Assets | |||||||||||||||||||||
Investor Class | $ | — | $ | — | $ | — | $ | 60,082 | $ | 724,338 | |||||||||||
Trust Class | — | 288,895 | — | 15,826 | 488,454 | ||||||||||||||||
Advisor Class | — | — | — | 5,875 | — | ||||||||||||||||
Institutional Class | 465,486 | 228,583 | 27,084 | 33,316 | 512,420 | ||||||||||||||||
Class A | 2,818 | 78,328 | 29,155 | 1,073 | 83,072 | ||||||||||||||||
Class C | 361 | 20,739 | 11,682 | 657 | 16,702 | ||||||||||||||||
Class R3 | — | 4,820 | — | 243 | 17,916 |
156
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 | MID CAP INTRINSIC VALUE FUND | |||||||||||||||||
August 31, 2012 | August 31, 2012 | August 31, 2012 | August 31, 2012 | August 31, 2012 | |||||||||||||||||
Shares Outstanding ($.001 par value; unlimited shares authorized) | |||||||||||||||||||||
Investor Class | — | 2,319 | 39,956 | 29,047 | 2,893 | ||||||||||||||||
Trust Class | — | — | 10,326 | 2,191 | 1,328 | ||||||||||||||||
Advisor Class | — | — | 12,602 | 549 | — | ||||||||||||||||
Institutional Class | 13,088 | 77,933 | 3,872 | 14,321 | 274 | ||||||||||||||||
Class A | 824 | 8,750 | 102 | 3,465 | 272 | ||||||||||||||||
Class C | 690 | 4,461 | 10 | 132 | 31 | ||||||||||||||||
Class R3 | — | 43 | 36 | 159 | 14 | ||||||||||||||||
Net Asset Value, offering and redemption price per share | |||||||||||||||||||||
Investor Class | $ | — | $ | 7.68 | $ | 26.46 | $ | 11.98 | $ | 15.90 | |||||||||||
Trust Class | — | — | 20.30 | 18.23 | 13.82 | ||||||||||||||||
Advisor Class | — | — | 17.46 | 18.54 | — | ||||||||||||||||
Institutional Class | 10.26 | 7.72 | 26.59 | 12.16 | 15.93 | ||||||||||||||||
Class R3 | — | 7.61 | 17.34 | 18.61 | 13.80 | ||||||||||||||||
Net Asset Value and redemption price per share | |||||||||||||||||||||
Class A | $ | 10.16 | $ | 7.67 | $ | 20.07 | $ | 18.23 | $ | 13.82 | |||||||||||
Offering Price per share | |||||||||||||||||||||
Class A‡ | $ | 10.78 | $ | 8.14 | $ | 21.29 | $ | 19.34 | $ | 14.66 | |||||||||||
Net Asset Value and offering price per share | |||||||||||||||||||||
Class C^ | $ | 10.00 | $ | 7.48 | $ | 17.19 | $ | 18.31 | $ | 13.69 | |||||||||||
*Cost of Investments: | |||||||||||||||||||||
Unaffiliated issuers | $ | 141,751 | $ | 625,246 | $ | 1,507,101 | $ | 466,852 | $ | 68,142 | |||||||||||
Affiliated issuers | — | — | — | — | — | ||||||||||||||||
Total cost of investments | $ | 141,751 | $ | 625,246 | $ | 1,507,101 | $ | 466,852 | $ | 68,142 | |||||||||||
Total cost of foreign currency | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
**Premium received from options written | $ | — | $ | — | $ | — | $ | — | $ | — |
‡ | On single retail sales of less than $50,000. On sales of $50,000 or more or in certain other circumstances described in the Fund's prospectus, offering price is reduced. |
^ | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
See Notes to Financial Statements
157
MULTI-CAP OPPORTUNITIES FUND | REAL ESTATE FUND | SELECT EQUITIES FUND | SMALL CAP GROWTH FUND | SOCIALLY RESPONSIVE FUND | |||||||||||||||||
August 31, 2012 | August 31, 2012 | August 31, 2012 | August 31, 2012 | August 31, 2012 | |||||||||||||||||
Shares Outstanding ($.001 par value; unlimited shares authorized) | |||||||||||||||||||||
Investor Class | — | — | — | 3,083 | 27,359 | ||||||||||||||||
Trust Class | — | 20,897 | — | 747 | 27,038 | ||||||||||||||||
Advisor Class | — | — | — | 419 | — | ||||||||||||||||
Institutional Class | 43,277 | 16,493 | 2,900 | 1,690 | 19,331 | ||||||||||||||||
Class A | 263 | 5,668 | 3,138 | 50 | 4,629 | ||||||||||||||||
Class C | 34 | 1,501 | 1,301 | 48 | 947 | ||||||||||||||||
Class R3 | — | 349 | — | 17 | 1,006 | ||||||||||||||||
Net Asset Value, offering and redemption price per share | |||||||||||||||||||||
Investor Class | $ | — | $ | — | $ | — | $ | 19.49 | $ | 26.48 | |||||||||||
Trust Class | — | 13.82 | — | 21.19 | 18.07 | ||||||||||||||||
Advisor Class | — | — | — | 14.03 | — | ||||||||||||||||
Institutional Class | 10.76 | 13.86 | 9.34 | 19.71 | 26.51 | ||||||||||||||||
Class R3 | — | 13.81 | — | 14.06 | 17.81 | ||||||||||||||||
Net Asset Value and redemption price per share | |||||||||||||||||||||
Class A | $ | 10.70 | $ | 13.82 | $ | 9.29 | $ | 21.27 | $ | 17.95 | |||||||||||
Offering Price per share | |||||||||||||||||||||
Class A‡ | $ | 11.35 | $ | 14.66 | $ | 9.86 | $ | 22.57 | $ | 19.05 | |||||||||||
Net Asset Value and offering price per share | |||||||||||||||||||||
Class C^ | $ | 10.52 | $ | 13.81 | $ | 8.98 | $ | 13.83 | $ | 17.64 | |||||||||||
*Cost of Investments: | |||||||||||||||||||||
Unaffiliated issuers | $ | 448,322 | $ | 520,301 | $ | 59,547 | $ | 103,979 | $ | 1,588,897 | |||||||||||
Affiliated issuers | — | — | — | — | — | ||||||||||||||||
Total cost of investments | $ | 448,322 | $ | 520,301 | $ | 59,547 | $ | 103,979 | $ | 1,588,897 | |||||||||||
Total cost of foreign currency | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
**Premium received from options written | $ | — | $ | — | $ | — | $ | — | $ | — |
158
Statements of Assets and Liabilities (cont'd)
Neuberger Berman Equity Funds
(000's omitted except per share amounts)
VALUE FUND | |||||||||
August 31, 2012 | |||||||||
Assets | |||||||||
Investments in securities, at value* (Notes A & F)—see Schedule of Investments: | |||||||||
Unaffiliated issuers | $ | 4,376 | |||||||
Affiliated issuers | — | ||||||||
4,376 | |||||||||
Cash | — | ||||||||
Foreign currency | — | ||||||||
Deposits with brokers for open option contracts | — | ||||||||
Dividends and interest receivable | 12 | ||||||||
Receivable for securities sold | 44 | ||||||||
Receivable for Fund shares sold | — | ||||||||
Receivable from Management—net (Note B) | 34 | ||||||||
Prepaid expenses and other assets | 19 | ||||||||
Total Assets | 4,485 | ||||||||
Liabilities | |||||||||
Options contracts written, at value** (Note A) | — | ||||||||
Payable for securities purchased | 83 | ||||||||
Payable for Fund shares redeemed | 3 | ||||||||
Payable to investment manager—net (Note B) | 2 | ||||||||
Payable to administrator—net (Note B) | — | ||||||||
Accrued expenses and other payables | 83 | ||||||||
Total Liabilities | 171 | ||||||||
Net Assets at value | $ | 4,314 | |||||||
Net Assets consist of: | |||||||||
Paid-in capital | $ | 4,867 | |||||||
Undistributed net investment income (loss) | 47 | ||||||||
Distributions in excess of net investment income | — | ||||||||
Accumulated net realized gains (losses) on investments | (742 | ) | |||||||
Net unrealized appreciation (depreciation) in value of investments | 142 | ||||||||
Net Assets at value | $ | 4,314 | |||||||
Net Assets | |||||||||
Investor Class | $ | — | |||||||
Trust Class | — | ||||||||
Advisor Class | — | ||||||||
Institutional Class | 2,698 | ||||||||
Class A | 1,561 | ||||||||
Class C | 55 | ||||||||
Class R3 | — |
See Notes to Financial Statements
159
Statements of Assets and Liabilities (cont'd)
Neuberger Berman Equity Funds (cont'd)
(000's omitted except per share amounts)
VALUE FUND | |||||
August 31, 2012 | |||||
Shares Outstanding ($.001 par value; unlimited shares authorized) | |||||
Investor Class | — | ||||
Trust Class | — | ||||
Advisor Class | — | ||||
Institutional Class | 241 | ||||
Class A | 140 | ||||
Class C | 5 | ||||
Class R3 | — | ||||
Net Asset Value, offering and redemption price per share | |||||
Investor Class | $ | — | |||
Trust Class | — | ||||
Advisor Class | — | ||||
Institutional Class | 11.18 | ||||
Class R3 | — | ||||
Net Asset Value and redemption price per share | |||||
Class A | $ | 11.13 | |||
Offering Price per share | |||||
Class A‡ | $ | 11.81 | |||
Net Asset Value and offering price per share | |||||
Class C^ | $ | 11.05 | |||
*Cost of Investments: | |||||
Unaffiliated issuers | $ | 4,234 | |||
Affiliated issuers | — | ||||
Total cost of investments | $ | 4,234 | |||
Total cost of foreign currency | $ | — | |||
**Premium received from options written | $ | — |
‡ | On single retail sales of less than $50,000. On sales of $50,000 or more or in certain other circumstances described in the Fund's prospectus, offering price is reduced. |
^ | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
See Notes to Financial Statements
160
Statements of Operations
Neuberger Berman Equity Funds
(000's omitted)
EMERGING MARKETS EQUITY FUND | EQUITY INCOME FUND | FOCUS FUND | GENESIS FUND | GLOBAL EQUITY FUND | |||||||||||||||||
For the Year Ended August 31, 2012 | For the Year Ended August 31, 2012 | For the Year Ended August 31, 2012 | For the Year Ended August 31, 2012 | For the Year Ended August 31, 2012 | |||||||||||||||||
Investment Income: | |||||||||||||||||||||
Income (Note A): | |||||||||||||||||||||
Dividend income—unaffiliated issuers | $ | 3,217 | $ | 74,809 | $ | 9,158 | $ | 76,623 | $ | 70 | |||||||||||
Dividend income—affiliated issuers (Note F) | — | — | — | 79,551 | — | ||||||||||||||||
Interest income—unaffiliated issuers | 1 | 11,695 | — | 2 | — | ||||||||||||||||
Interest income—affiliated issuers (Note F) | — | — | — | 8 | — | ||||||||||||||||
Foreign taxes withheld | (266 | ) | (4,898 | ) | (49 | ) | (2,130 | ) | (5 | ) | |||||||||||
Total income | $ | 2,952 | $ | 81,606 | $ | 9,109 | $ | 154,054 | $ | 65 | |||||||||||
Expenses: | |||||||||||||||||||||
Investment management fees (Note B) | 1,378 | 10,081 | 2,881 | 75,749 | 22 | ||||||||||||||||
Administration fees (Note B) | 83 | 1,282 | 323 | 6,877 | 2 | ||||||||||||||||
Administration fees (Note B): | |||||||||||||||||||||
Investor Class | — | — | 1,019 | 4,483 | — | ||||||||||||||||
Trust Class | — | — | 56 | 11,169 | — | ||||||||||||||||
Advisor Class | — | — | 23 | 2,071 | — | ||||||||||||||||
Institutional Class | 119 | 915 | 5 | 4,793 | 2 | ||||||||||||||||
Class A | 8 | 1,612 | 1 | — | — | ||||||||||||||||
Class C | 3 | 627 | 1 | — | — | ||||||||||||||||
Class R3 | — | 1 | — | — | — | ||||||||||||||||
Distribution fees (Note B): | |||||||||||||||||||||
Trust Class | — | — | 17 | — | — | ||||||||||||||||
Advisor Class | — | — | 17 | 1,523 | — | ||||||||||||||||
Class A | 11 | 2,015 | 1 | — | — | ||||||||||||||||
Class C | 13 | 3,132 | 3 | — | 1 | ||||||||||||||||
Class R3 | — | 2 | — | — | — | ||||||||||||||||
Shareholder servicing agent fees: | |||||||||||||||||||||
Investor Class | — | — | 375 | 1,578 | — | ||||||||||||||||
Trust Class | — | — | 4 | 357 | — | ||||||||||||||||
Advisor Class | — | — | 2 | 189 | — | ||||||||||||||||
Institutional Class | 33 | 112 | 1 | 510 | 1 | ||||||||||||||||
Class A | 5 | 197 | — | — | — | ||||||||||||||||
Class C | 1 | 89 | — | — | — | ||||||||||||||||
Class R3 | — | — | — | — | — | ||||||||||||||||
Audit fees | 58 | 60 | 60 | 60 | 40 | ||||||||||||||||
Custodian fees (Note A) | 524 | 593 | 174 | 1,518 | 51 | ||||||||||||||||
Insurance expense | 6 | 76 | 32 | 653 | — | ||||||||||||||||
Legal fees (Note G for International Fund) | 70 | 74 | 71 | 156 | 72 | ||||||||||||||||
Registration and filing fees | 58 | 112 | 67 | 193 | 61 | ||||||||||||||||
Reimbursement of expenses previously assumed by Management (Note B) | — | 653 | — | — | — | ||||||||||||||||
Shareholder reports | 21 | 264 | 76 | 1,222 | 6 | ||||||||||||||||
Trustees' fees and expenses | 53 | 55 | 54 | 66 | 53 | ||||||||||||||||
Miscellaneous | 29 | 143 | 34 | 630 | 4 | ||||||||||||||||
Total expenses | 2,473 | 22,095 | 5,297 | 113,797 | 315 |
See Notes to Financial Statements
161
GLOBAL THEMATIC OPPORTUNITIES FUND | GUARDIAN FUND | INTERNATIONAL FUND | INTERNATIONAL INSTITUTIONAL FUND | INTERNATIONAL LARGE CAP FUND | |||||||||||||||||
For the Year Ended August 31, 2012 | For the Year Ended August 31, 2012 | For the Year Ended August 31, 2012 | For the Year Ended August 31, 2012 | For the Year Ended August 31, 2012 | |||||||||||||||||
Investment Income: | |||||||||||||||||||||
Income (Note A): | |||||||||||||||||||||
Dividend income—unaffiliated issuers | $ | 779 | $ | 19,610 | $ | 7,572 | $ | 11,547 | $ | 5,498 | |||||||||||
Dividend income—affiliated issuers (Note F) | — | — | — | — | — | ||||||||||||||||
Interest income—unaffiliated issuers | — | — | — | 1 | — | ||||||||||||||||
Interest income—affiliated issuers (Note F) | — | — | — | — | — | ||||||||||||||||
Foreign taxes withheld | (64 | ) | (382 | ) | (612 | ) | (928 | ) | (474 | ) | |||||||||||
Total income | $ | 715 | $ | 19,228 | $ | 6,960 | $ | 10,620 | $ | 5,024 | |||||||||||
Expenses: | |||||||||||||||||||||
Investment management fees (Note B) | 335 | 5,665 | 2,193 | 3,284 | 1,036 | ||||||||||||||||
Administration fees (Note B) | 24 | 672 | 155 | 234 | 113 | ||||||||||||||||
Administration fees (Note B): | |||||||||||||||||||||
Investor Class | — | 1,882 | 290 | — | — | ||||||||||||||||
Trust Class | — | 373 | 378 | — | 53 | ||||||||||||||||
Advisor Class | — | 2 | — | — | — | ||||||||||||||||
Institutional Class | 35 | 48 | — | 351 | 147 | ||||||||||||||||
Class A | 1 | 28 | 4 | — | 13 | ||||||||||||||||
Class C | — | 2 | — | — | 5 | ||||||||||||||||
Class R3 | — | 1 | — | — | 1 | ||||||||||||||||
Distribution fees (Note B): | |||||||||||||||||||||
Trust Class | — | 110 | — | — | 16 | ||||||||||||||||
Advisor Class | — | 2 | — | — | — | ||||||||||||||||
Class A | 1 | 34 | 5 | — | 17 | ||||||||||||||||
Class C | 1 | 12 | 2 | — | 24 | ||||||||||||||||
Class R3 | — | 3 | — | — | 1 | ||||||||||||||||
Shareholder servicing agent fees: | |||||||||||||||||||||
Investor Class | — | 789 | 146 | — | — | ||||||||||||||||
Trust Class | — | 14 | 64 | — | 10 | ||||||||||||||||
Advisor Class | — | 1 | — | — | — | ||||||||||||||||
Institutional Class | 4 | 5 | — | 34 | 15 | ||||||||||||||||
Class A | 1 | 4 | 1 | — | 3 | ||||||||||||||||
Class C | — | 1 | — | — | 1 | ||||||||||||||||
Class R3 | — | — | — | — | — | ||||||||||||||||
Audit fees | 40 | 60 | 62 | 62 | 60 | ||||||||||||||||
Custodian fees (Note A) | 79 | 292 | 277 | 322 | 220 | ||||||||||||||||
Insurance expense | 1 | 67 | 18 | 19 | 11 | ||||||||||||||||
Legal fees (Note G for International Fund) | 73 | 74 | 1,248 | 72 | 71 | ||||||||||||||||
Registration and filing fees | 64 | 78 | 52 | 16 | 64 | ||||||||||||||||
Reimbursement of expenses previously assumed by Management (Note B) | — | 1 | — | — | — | ||||||||||||||||
Shareholder reports | 10 | 121 | 63 | 38 | 22 | ||||||||||||||||
Trustees' fees and expenses | 53 | 55 | 54 | 54 | 54 | ||||||||||||||||
Miscellaneous | 8 | 66 | 40 | 45 | 32 | ||||||||||||||||
Total expenses | 730 | 10,462 | 5,052 | 4,531 | 1,989 |
162
Statements of Operations (cont'd)
Neuberger Berman Equity Funds (cont'd)
(000's omitted)
EMERGING MARKETS EQUITY FUND | EQUITY INCOME FUND | FOCUS FUND | GENESIS FUND | GLOBAL EQUITY FUND | |||||||||||||||||
For the Year Ended August 31, 2012 | For the Year Ended August 31, 2012 | For the Year Ended August 31, 2012 | For the Year Ended August 31, 2012 | For the Year Ended August 31, 2012 | |||||||||||||||||
Expenses reimbursed by Management (Note B) | (720 | ) | — | (4 | ) | (527 | ) | (281 | ) | ||||||||||||
Investment management fees waived (Note B) | — | — | — | — | — | ||||||||||||||||
Expenses reduced by custodian fee expense offset arrangement (Note A) | — | (1 | ) | (1 | ) | (1 | ) | — | |||||||||||||
Net expenses prior to reimbursement of insurance proceeds | 1,753 | 22,094 | 5,292 | 113,269 | 34 | ||||||||||||||||
Reimbursement from insurance proceeds (Note G) | — | — | — | — | — | ||||||||||||||||
Total net expenses | 1,753 | 22,094 | 5,292 | 113,269 | 34 | ||||||||||||||||
Net investment income (loss) | $ | 1,199 | $ | 59,512 | $ | 3,817 | $ | 40,785 | $ | 31 | |||||||||||
Realized and Unrealized Gain (Loss) on Investments (Note A): | |||||||||||||||||||||
Net realized gain (loss) on: | |||||||||||||||||||||
Sales of investment securities of unaffiliated issuers | (20,228 | ) | 16,056 | 12,741 | 275,676 | (129 | ) | ||||||||||||||
Sales of investment securities of affiliated issuers | — | — | — | 109,882 | — | ||||||||||||||||
Foreign currency | (238 | ) | (552 | ) | (1 | ) | (164 | ) | (4 | ) | |||||||||||
Options written | — | 2,118 | — | — | — | ||||||||||||||||
Change in net unrealized appreciation (depreciation) in value of: | |||||||||||||||||||||
Unaffiliated investment securities | 12,565 | 120,938 | 64,609 | 374,435 | 178 | ||||||||||||||||
Affiliated investment securities | — | — | — | (105,370 | ) | — | |||||||||||||||
Foreign currency | 1 | (51 | ) | — | 1 | — | |||||||||||||||
Options written | — | 243 | — | — | — | ||||||||||||||||
Net gain (loss) on investments | (7,900 | ) | 138,752 | 77,349 | 654,460 | 45 | |||||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | (6,701 | ) | $ | 198,264 | $ | 81,166 | $ | 695,245 | $ | 76 |
See Notes to Financial Statements
163
GLOBAL THEMATIC OPPORTUNITIES FUND | GUARDIAN FUND | INTERNATIONAL FUND | INTERNATIONAL INSTITUTIONAL FUND | INTERNATIONAL LARGE CAP FUND | |||||||||||||||||
For the Year Ended August 31, 2012 | For the Year Ended August 31, 2012 | For the Year Ended August 31, 2012 | For the Year Ended August 31, 2012 | For the Year Ended August 31, 2012 | |||||||||||||||||
Expenses reimbursed by Management (Note B) | (234 | ) | (2 | ) | (107 | ) | (1,258 | ) | (189 | ) | |||||||||||
Investment management fees waived (Note B) | — | — | — | — | — | ||||||||||||||||
Expenses reduced by custodian fee expense offset arrangement (Note A) | — | — | — | — | — | ||||||||||||||||
Net expenses prior to reimbursement of insurance proceeds | 496 | 10,460 | 4,945 | 3,273 | 1,800 | ||||||||||||||||
Reimbursement from insurance proceeds (Note G) | — | — | (298 | ) | — | — | |||||||||||||||
Total net expenses | 496 | 10,460 | 4,647 | 3,273 | 1,800 | ||||||||||||||||
Net investment income (loss) | $ | 219 | $ | 8,768 | $ | 2,313 | $ | 7,347 | $ | 3,224 | |||||||||||
Realized and Unrealized Gain (Loss) on Investments (Note A): | |||||||||||||||||||||
Net realized gain (loss) on: | |||||||||||||||||||||
Sales of investment securities of unaffiliated issuers | (3,543 | ) | 34,181 | 8,530 | (7,527 | ) | (3,111 | ) | |||||||||||||
Sales of investment securities of affiliated issuers | — | — | — | — | — | ||||||||||||||||
Foreign currency | (1 | ) | (8 | ) | (229 | ) | (497 | ) | (169 | ) | |||||||||||
Options written | — | — | — | — | — | ||||||||||||||||
Change in net unrealized appreciation (depreciation) in value of: | |||||||||||||||||||||
Unaffiliated investment securities | 1,330 | 63,294 | (13,090 | ) | 10,776 | (7 | ) | ||||||||||||||
Affiliated investment securities | — | — | — | — | — | ||||||||||||||||
Foreign currency | (6 | ) | (129 | ) | (8 | ) | (26 | ) | (18 | ) | |||||||||||
Options written | — | — | — | — | — | ||||||||||||||||
Net gain (loss) on investments | (2,220 | ) | 97,338 | (4,797 | ) | 2,726 | (3,305 | ) | |||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | (2,001 | ) | $ | 106,106 | $ | (2,484 | ) | $ | 10,073 | $ | (81 | ) |
164
Statements of Operations (cont'd)
Neuberger Berman Equity Funds
(000's omitted)
INTRINSIC VALUE FUND | LARGE CAP DISCIPLINED GROWTH FUND | LARGE CAP VALUE FUND | MID CAP GROWTH FUND | MID CAP INTRINSIC VALUE FUND | |||||||||||||||||
For the Year Ended August 31, 2012 | For the Year Ended August 31, 2012 | For the Year Ended August 31, 2012 | For the Year Ended August 31, 2012 | For the Year Ended August 31, 2012 | |||||||||||||||||
Investment Income: | |||||||||||||||||||||
Income (Note A): | |||||||||||||||||||||
Dividend income—unaffiliated issuers | $ | 1,199 | $ | 8,018 | $ | 38,743 | $ | 2,887 | $ | 1,375 | |||||||||||
Dividend income—affiliated issuers (Note F) | — | — | — | — | — | ||||||||||||||||
Interest income—unaffiliated issuers | — | 32 | 112 | 37 | 5 | ||||||||||||||||
Interest income—affiliated issuers (Note F) | — | — | — | — | — | ||||||||||||||||
Foreign taxes withheld | — | (22 | ) | (430 | ) | (13 | ) | (9 | ) | ||||||||||||
Total income | $ | 1,199 | $ | 8,028 | $ | 38,425 | $ | 2,911 | $ | 1,371 | |||||||||||
Expenses: | |||||||||||||||||||||
Investment management fees (Note B) | 1,188 | 3,560 | 8,956 | 3,140 | 405 | ||||||||||||||||
Administration fees (Note B) | 84 | 405 | 1,123 | 354 | 44 | ||||||||||||||||
Administration fees (Note B): | |||||||||||||||||||||
Investor Class | — | 33 | 2,189 | 689 | 91 | ||||||||||||||||
Trust Class | — | — | 1,050 | 124 | 70 | ||||||||||||||||
Advisor Class | — | — | 874 | 33 | — | ||||||||||||||||
Institutional Class | 112 | 508 | 171 | 132 | 4 | ||||||||||||||||
Class A | 18 | 116 | 43 | 100 | 6 | ||||||||||||||||
Class C | 13 | 69 | — | 3 | 1 | ||||||||||||||||
Class R3 | — | 1 | 1 | 4 | — | ||||||||||||||||
Distribution fees (Note B): | |||||||||||||||||||||
Trust Class | — | — | 309 | — | 20 | ||||||||||||||||
Advisor Class | — | — | 643 | 24 | — | ||||||||||||||||
Class A | 23 | 145 | 54 | 125 | 8 | ||||||||||||||||
Class C | 66 | 343 | 1 | 17 | 2 | ||||||||||||||||
Class R3 | — | 2 | 1 | 9 | 1 | ||||||||||||||||
Shareholder servicing agent fees: | |||||||||||||||||||||
Investor Class | — | 26 | 732 | 403 | 48 | ||||||||||||||||
Trust Class | — | — | 38 | 7 | 18 | ||||||||||||||||
Advisor Class | — | — | 38 | 3 | — | ||||||||||||||||
Institutional Class | 13 | 62 | 18 | 15 | 1 | ||||||||||||||||
Class A | 4 | 17 | 2 | 17 | 2 | ||||||||||||||||
Class C | 2 | 8 | — | 2 | — | ||||||||||||||||
Class R3 | — | — | — | 1 | — | ||||||||||||||||
Audit fees | 23 | 23 | 60 | 23 | 23 | ||||||||||||||||
Custodian fees (Note A) | 71 | 193 | 373 | 196 | 82 | ||||||||||||||||
Insurance expense | 8 | 39 | 134 | 34 | 5 | ||||||||||||||||
Legal fees (Note G for International Fund) | 72 | 73 | 100 | 72 | 98 | ||||||||||||||||
Registration and filing fees | 34 | 92 | 94 | 81 | 58 | ||||||||||||||||
Reimbursement of expenses previously assumed by Management (Note B) | — | 13 | 3 | 13 | — | ||||||||||||||||
Shareholder reports | 19 | 94 | 200 | 78 | 20 | ||||||||||||||||
Trustees' fees and expenses | 53 | 54 | 55 | 54 | 53 | ||||||||||||||||
Miscellaneous | 12 | 46 | 118 | 38 | 7 | ||||||||||||||||
Total expenses | 1,815 | 5,922 | 17,380 | 5,791 | 1,067 |
See Notes to Financial Statements
165
MULTI-CAP OPPORTUNITIES FUND | REAL ESTATE FUND | SELECT EQUITIES FUND | SMALL CAP GROWTH FUND | SOCIALLY RESPONSIVE FUND | |||||||||||||||||
For the Year Ended August 31, 2012 | For the Year Ended August 31, 2012 | For the Year Ended August 31, 2012 | For the Year Ended August 31, 2012 | For the Year Ended August 31, 2012 | |||||||||||||||||
Investment Income: | |||||||||||||||||||||
Income (Note A): | |||||||||||||||||||||
Dividend income—unaffiliated issuers | $ | 5,280 | $ | 9,695 | $ | 701 | $ | 402 | $ | 31,261 | |||||||||||
Dividend income—affiliated issuers (Note F) | — | — | — | — | — | ||||||||||||||||
Interest income—unaffiliated issuers | 16 | 20 | — | 3 | 4 | ||||||||||||||||
Interest income—affiliated issuers (Note F) | — | — | — | — | — | ||||||||||||||||
Foreign taxes withheld | (25 | ) | (54 | ) | (9 | ) | (1 | ) | (826 | ) | |||||||||||
Total income | $ | 5,271 | $ | 9,661 | $ | 692 | $ | 404 | $ | 30,439 | |||||||||||
Expenses: | |||||||||||||||||||||
Investment management fees (Note B) | 1,166 | 3,686 | 380 | 1,143 | 8,477 | ||||||||||||||||
Administration fees (Note B) | 117 | 276 | 41 | 81 | 1,056 | ||||||||||||||||
Administration fees (Note B): | |||||||||||||||||||||
Investor Class | — | — | — | 123 | 1,412 | ||||||||||||||||
Trust Class | — | 796 | — | 58 | 1,670 | ||||||||||||||||
Advisor Class | — | — | — | 22 | — | ||||||||||||||||
Institutional Class | 174 | 143 | 25 | 43 | 407 | ||||||||||||||||
Class A | 3 | 106 | 59 | 2 | 161 | ||||||||||||||||
Class C | 1 | 25 | 24 | 1 | 30 | ||||||||||||||||
Class R3 | — | 5 | — | — | 28 | ||||||||||||||||
Distribution fees (Note B): | |||||||||||||||||||||
Trust Class | — | 234 | — | 17 | 491 | ||||||||||||||||
Advisor Class | — | — | — | 16 | — | ||||||||||||||||
Class A | 4 | 133 | 74 | 3 | 202 | ||||||||||||||||
Class C | 3 | 126 | 120 | 5 | 148 | ||||||||||||||||
Class R3 | — | 11 | — | 1 | 71 | ||||||||||||||||
Shareholder servicing agent fees: | |||||||||||||||||||||
Investor Class | — | — | — | 87 | 572 | ||||||||||||||||
Trust Class | — | 69 | — | 16 | 69 | ||||||||||||||||
Advisor Class | — | — | — | 3 | — | ||||||||||||||||
Institutional Class | 59 | 20 | 3 | 13 | 45 | ||||||||||||||||
Class A | 1 | 33 | 11 | 1 | 41 | ||||||||||||||||
Class C | — | 10 | 4 | 1 | 9 | ||||||||||||||||
Class R3 | — | 1 | — | — | 2 | ||||||||||||||||
Audit fees | 23 | 62 | 58 | 23 | 23 | ||||||||||||||||
Custodian fees (Note A) | 80 | 156 | 46 | 110 | 397 | ||||||||||||||||
Insurance expense | 3 | 20 | 4 | 12 | 96 | ||||||||||||||||
Legal fees (Note G for International Fund) | 70 | 125 | 69 | 72 | 76 | ||||||||||||||||
Registration and filing fees | 40 | 76 | 45 | 82 | 100 | ||||||||||||||||
Reimbursement of expenses previously assumed by Management (Note B) | 136 | — | — | — | 4 | ||||||||||||||||
Shareholder reports | 21 | 121 | 19 | 57 | 282 | ||||||||||||||||
Trustees' fees and expenses | 54 | 54 | 53 | 53 | 55 | ||||||||||||||||
Miscellaneous | 11 | 28 | 7 | 17 | 102 | ||||||||||||||||
Total expenses | 1,966 | 6,316 | 1,042 | 2,062 | 16,026 |
166
Statements of Operations (cont'd)
Neuberger Berman Equity Funds (cont'd)
(000's omitted)
INTRINSIC VALUE FUND | LARGE CAP DISCIPLINED GROWTH FUND | LARGE CAP VALUE FUND | MID CAP GROWTH FUND | MID CAP INTRINSIC VALUE FUND | |||||||||||||||||
For the Year Ended August 31, 2012 | For the Year Ended August 31, 2012 | For the Year Ended August 31, 2012 | For the Year Ended August 31, 2012 | For the Year Ended August 31, 2012 | |||||||||||||||||
Expenses reimbursed by Management (Note B) | (310 | ) | (206 | ) | — | (94 | ) | (41 | ) | ||||||||||||
Investment management fees waived (Note B) | — | — | — | — | (154 | ) | |||||||||||||||
Expenses reduced by custodian fee expense offset arrangement (Note A) | — | — | (1 | ) | — | — | |||||||||||||||
Net expenses prior to reimbursement of insurance proceeds | 1,505 | 5,716 | 17,379 | 5,697 | 872 | ||||||||||||||||
Reimbursement from insurance proceeds (Note G) | — | — | — | — | — | ||||||||||||||||
Total net expenses | 1,505 | 5,716 | 17,379 | 5,697 | 872 | ||||||||||||||||
Net investment income (loss) | $ | (306 | ) | $ | 2,312 | $ | 21,046 | $ | (2,786 | ) | $ | 499 | |||||||||
Realized and Unrealized Gain (Loss) on Investments (Note A): | |||||||||||||||||||||
Net realized gain (loss) on: | |||||||||||||||||||||
Sales of investment securities of unaffiliated issuers | 1,826 | 8,641 | 265,067 | 27,805 | 10,085 | ||||||||||||||||
Sales of investment securities of affiliated issuers | — | — | — | — | — | ||||||||||||||||
Foreign currency | — | (1 | ) | (35 | ) | — | — | ||||||||||||||
Options written | — | — | — | — | — | ||||||||||||||||
Change in net unrealized appreciation (depreciation) in value of: | |||||||||||||||||||||
Unaffiliated investment securities | 13,923 | 52,228 | (176,465 | ) | 34,016 | (1,902 | ) | ||||||||||||||
Affiliated investment securities | — | — | — | — | — | ||||||||||||||||
Foreign currency | — | — | — | — | — | ||||||||||||||||
Options written | — | — | — | — | — | ||||||||||||||||
Net gain (loss) on investments | 15,749 | 60,868 | 88,567 | 61,821 | 8,183 | ||||||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 15,443 | $ | 63,180 | $ | 109,613 | $ | 59,035 | $ | 8,682 |
See Notes to Financial Statements
167
MULTI-CAP OPPORTUNITIES FUND | REAL ESTATE FUND | SELECT EQUITIES FUND | SMALL CAP GROWTH FUND | SOCIALLY RESPONSIVE FUND | |||||||||||||||||||||||||||
For the Year Ended August 31, 2012 | For the Year Ended August 31, 2012 | For the Year Ended August 31, 2012 | For the Year Ended August 31, 2012 | For the Year Ended August 31, 2012 | |||||||||||||||||||||||||||
Expenses reimbursed by Management (Note B) | — | (1,640 | ) | (248 | ) | (522 | ) | (1 | ) | ||||||||||||||||||||||
Investment management fees waived (Note B) | — | — | — | — | — | ||||||||||||||||||||||||||
Expenses reduced by custodian fee expense offset arrangement (Note A) | — | — | — | — | — | ||||||||||||||||||||||||||
Net expenses prior to reimbursement of insurance proceeds | 1,966 | 4,676 | 794 | 1,540 | 16,025 | ||||||||||||||||||||||||||
Reimbursement from insurance proceeds (Note G) | — | — | — | — | — | ||||||||||||||||||||||||||
Total net expenses | 1,966 | 4,676 | 794 | 1,540 | 16,025 | ||||||||||||||||||||||||||
Net investment income (loss) | $ | 3,305 | $ | 4,985 | $ | (102 | ) | $ | (1,136 | ) | $ | 14,414 | |||||||||||||||||||
Realized and Unrealized Gain (Loss) on Investments (Note A): | |||||||||||||||||||||||||||||||
Net realized gain (loss) on: | |||||||||||||||||||||||||||||||
Sales of investment securities of unaffiliated issuers | 3,496 | 19,757 | 3,307 | 19,098 | 58,951 | ||||||||||||||||||||||||||
Sales of investment securities of affiliated issuers | — | — | — | — | — | ||||||||||||||||||||||||||
Foreign currency | — | 43 | — | — | (181 | ) | |||||||||||||||||||||||||
Options written | — | — | — | — | — | ||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) in value of: | |||||||||||||||||||||||||||||||
Unaffiliated investment securities | 23,582 | 59,096 | 4,444 | (6,745 | ) | 67,895 | |||||||||||||||||||||||||
Affiliated investment securities | — | — | — | — | — | ||||||||||||||||||||||||||
Foreign currency | — | — | — | — | (165 | ) | |||||||||||||||||||||||||
Options written | — | — | — | — | — | ||||||||||||||||||||||||||
Net gain (loss) on investments | 27,078 | 78,896 | 7,751 | 12,353 | 126,500 | ||||||||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 30,383 | $ | 83,881 | $ | 7,649 | $ | 11,217 | $ | 140,914 |
168
Statements of Operations (cont'd)
Neuberger Berman Equity Funds
(000's omitted)
VALUE FUND | |||||||||
For the Year Ended August 31, 2012 | |||||||||
Investment Income: | |||||||||
Income (Note A): | |||||||||
Dividend income—unaffiliated issuers | $ | 76 | |||||||
Dividend income—affiliated issuers (Note F) | — | ||||||||
Interest income—unaffiliated issuers | — | ||||||||
Interest income—affiliated issuers (Note F) | — | ||||||||
Foreign taxes withheld | — | ||||||||
Total income | $ | 76 | |||||||
Expenses: | |||||||||
Investment management fees (Note B) | 19 | ||||||||
Administration fees (Note B) | 2 | ||||||||
Administration fees (Note B): | |||||||||
Investor Class | — | ||||||||
Trust Class | — | ||||||||
Advisor Class | — | ||||||||
Institutional Class | 2 | ||||||||
Class A | 2 | ||||||||
Class C | — | ||||||||
Class R3 | — | ||||||||
Distribution fees (Note B): | |||||||||
Trust Class | — | ||||||||
Advisor Class | — | ||||||||
Class A | 3 | ||||||||
Class C | — | ||||||||
Class R3 | — | ||||||||
Shareholder servicing agent fees: | |||||||||
Investor Class | — | ||||||||
Trust Class | — | ||||||||
Advisor Class | — | ||||||||
Institutional Class | 1 | ||||||||
Class A | — | ||||||||
Class C | — | ||||||||
Class R3 | — | ||||||||
Audit fees | 60 | ||||||||
Custodian fees (Note A) | 35 | ||||||||
Insurance expense | — | ||||||||
Legal fees (Note G for International Fund) | 90 | ||||||||
Registration and filing fees | 60 | ||||||||
Reimbursement of expenses previously assumed by Management (Note B) | — | ||||||||
Shareholder reports | 3 | ||||||||
Trustees' fees and expenses | 54 | ||||||||
Miscellaneous | 2 | ||||||||
Total expenses | 333 |
See Notes to Financial Statements
169
Statements of Operations (cont'd)
Neuberger Berman Equity Funds (cont'd)
(000's omitted)
VALUE FUND | |||||
For the Year Ended August 31, 2012 | |||||
Expenses reimbursed by Management (Note B) | (303 | ) | |||
Investment management fees waived (Note B) | — | ||||
Expenses reduced by custodian fee expense offset arrangement (Note A) | — | ||||
Net expenses prior to reimbursement of insurance proceeds | 30 | ||||
Reimbursement from insurance proceeds (Note G) | — | ||||
Total net expenses | 30 | ||||
Net investment income (loss) | $ | 46 | |||
Realized and Unrealized Gain (Loss) on Investments (Note A): | |||||
Net realized gain (loss) on: | |||||
Sales of investment securities of unaffiliated issuers | 169 | ||||
Sales of investment securities of affiliated issuers | — | ||||
Foreign currency | — | ||||
Options written | — | ||||
Change in net unrealized appreciation (depreciation) in value of: | |||||
Unaffiliated investment securities | 105 | ||||
Affiliated investment securities | — | ||||
Foreign currency | — | ||||
Options written | — | ||||
Net gain (loss) on investments | 274 | ||||
Net increase (decrease) in net assets resulting from operations | $ | 320 |
See Notes to Financial Statements
170
Statements of Changes in Net Assets
Neuberger Berman Equity Funds
(000's omitted)
EMERGING MARKETS EQUITY FUND | EQUITY INCOME FUND | FOCUS FUND | |||||||||||||||||||||||
Year Ended August 31, 2012 | Year Ended August 31, 2011 | Year Ended August 31, 2012 | Year Ended August 31, 2011 | Year Ended August 31, 2012 | Year Ended August 31, 2011 | ||||||||||||||||||||
Increase (Decrease) in Net Assets: | |||||||||||||||||||||||||
From Operations (Note A): | |||||||||||||||||||||||||
Net investment income (loss) | $ | 1,199 | $ | 658 | $ | 59,512 | $ | 24,037 | $ | 3,817 | $ | 3,747 | |||||||||||||
Net realized gain (loss) on investments | (20,466 | ) | (2,675 | ) | 17,622 | 14,991 | 12,740 | 67,909 | |||||||||||||||||
Change in net unrealized appreciation (depreciation) of investments | 12,566 | (8,971 | ) | 121,130 | 50,209 | 64,609 | 19,464 | ||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | (6,701 | ) | (10,988 | ) | 198,264 | 89,237 | 81,166 | 91,120 | |||||||||||||||||
Distributions to Shareholders From (Note A): | |||||||||||||||||||||||||
Net investment income: | |||||||||||||||||||||||||
Investor Class | — | — | — | — | (2,577 | ) | (2,980 | ) | |||||||||||||||||
Trust Class | — | — | — | — | (92 | ) | (108 | ) | |||||||||||||||||
Advisor Class | — | — | — | — | (64 | ) | (57 | ) | |||||||||||||||||
Institutional Class | (730 | ) | (41 | ) | (32,984 | ) | (12,641 | ) | (31 | ) | (0 | ) | |||||||||||||
Class A | (17 | ) | — | (22,888 | ) | (12,923 | ) | (3 | ) | (0 | ) | ||||||||||||||
Class C | — | — | (7,031 | ) | (3,415 | ) | (3 | ) | (0 | ) | |||||||||||||||
Class R3 | — | — | (12 | ) | (1 | ) | — | — | |||||||||||||||||
Net realized gain on investments: | |||||||||||||||||||||||||
Investor Class | — | — | — | — | — | — | |||||||||||||||||||
Trust Class | — | — | — | — | — | — | |||||||||||||||||||
Advisor Class | — | — | — | — | — | — | |||||||||||||||||||
Institutional Class | — | (569 | ) | (6,531 | ) | — | — | — | |||||||||||||||||
Class A | — | (180 | ) | (5,069 | ) | — | — | — | |||||||||||||||||
Class C | — | (16 | ) | (2,012 | ) | — | — | — | |||||||||||||||||
Class R3 | — | (1 | ) | (2 | ) | — | — | — | |||||||||||||||||
Tax return of capital: | |||||||||||||||||||||||||
Institutional Class | — | — | — | — | — | — | |||||||||||||||||||
Class A | — | — | — | — | — | — | |||||||||||||||||||
Class C | — | — | — | — | — | — | |||||||||||||||||||
Total distributions to shareholders | (747 | ) | (807 | ) | (76,529 | ) | (28,980 | ) | (2,770 | ) | (3,145 | ) | |||||||||||||
From Fund Share Transactions (Note D): | |||||||||||||||||||||||||
Proceeds from shares sold: | |||||||||||||||||||||||||
Investor Class | — | — | — | — | 3,526 | 4,465 | |||||||||||||||||||
Trust Class | — | — | — | — | 1,086 | 1,882 | |||||||||||||||||||
Advisor Class | — | — | — | — | 745 | 1,052 | |||||||||||||||||||
Institutional Class | 125,596 | 127,870 | 687,305 | 648,610 | 3,022 | 5,659 | |||||||||||||||||||
Class A | 2,464 | 7,005 | 595,197 | 515,353 | 444 | 489 | |||||||||||||||||||
Class C | 1,098 | 1,223 | 164,762 | 191,097 | 27 | 263 | |||||||||||||||||||
Class R3 | 973 | — | 890 | 163 | — | — | |||||||||||||||||||
Proceeds from reinvestment of dividends and distributions: | |||||||||||||||||||||||||
Investor Class | — | — | — | — | 2,256 | 2,599 | |||||||||||||||||||
Trust Class | — | — | — | — | 85 | 101 | |||||||||||||||||||
Advisor Class | — | — | — | — | 64 | 56 | |||||||||||||||||||
Institutional Class | 422 | 557 | 26,934 | 8,064 | 30 | — | |||||||||||||||||||
Class A | 14 | 175 | 25,475 | 11,201 | 2 | — | |||||||||||||||||||
Class C | — | 4 | 5,170 | 1,543 | 3 | — | |||||||||||||||||||
Class R3 | — | 1 | 7 | 1 | — | — |
See Notes to Financial Statements
171
GENESIS FUND | GLOBAL EQUITY FUND | ||||||||||||||||
Year Ended August 31, 2012 | Year Ended August 31, 2011 | Year Ended August 31, 2012 | Period from June 30, 2011 (Commencement of Operations) to August 31, 2011 | ||||||||||||||
Increase (Decrease) in Net Assets: | |||||||||||||||||
From Operations (Note A): | |||||||||||||||||
Net investment income (loss) | $ | 40,785 | $ | 93,433 | $ | 31 | $ | — | |||||||||
Net realized gain (loss) on investments | 385,394 | 761,166 | (133 | ) | (12 | ) | |||||||||||
Change in net unrealized appreciation (depreciation) of investments | 269,066 | 1,784,743 | 178 | (80 | ) | ||||||||||||
Net increase (decrease) in net assets resulting from operations | 695,245 | 2,639,342 | 76 | (92 | ) | ||||||||||||
Distributions to Shareholders From (Note A): | |||||||||||||||||
Net investment income: | |||||||||||||||||
Investor Class | (33,793 | ) | — | — | — | ||||||||||||
Trust Class | (30,535 | ) | — | — | — | ||||||||||||
Advisor Class | (9,237 | ) | — | — | — | ||||||||||||
Institutional Class | (61,990 | ) | — | (29 | ) | — | |||||||||||
Class A | — | — | (2 | ) | — | ||||||||||||
Class C | — | — | (2 | ) | — | ||||||||||||
Class R3 | — | — | — | — | |||||||||||||
Net realized gain on investments: | |||||||||||||||||
Investor Class | (73,488 | ) | — | — | — | ||||||||||||
Trust Class | (77,749 | ) | — | — | — | ||||||||||||
Advisor Class | (24,284 | ) | — | — | — | ||||||||||||
Institutional Class | (120,691 | ) | — | — | — | ||||||||||||
Class A | — | — | — | — | |||||||||||||
Class C | — | — | — | — | |||||||||||||
Class R3 | — | — | — | — | |||||||||||||
Tax return of capital: | |||||||||||||||||
Institutional Class | — | — | (42 | ) | — | ||||||||||||
Class A | — | — | (4 | ) | — | ||||||||||||
Class C | — | — | (2 | ) | — | ||||||||||||
Total distributions to shareholders | (431,767 | ) | — | (81 | ) | — | |||||||||||
From Fund Share Transactions (Note D): | |||||||||||||||||
Proceeds from shares sold: | |||||||||||||||||
Investor Class | 405,711 | 411,792 | — | — | |||||||||||||
Trust Class | 516,561 | 609,606 | — | — | |||||||||||||
Advisor Class | 186,389 | 218,796 | — | — | |||||||||||||
Institutional Class | 1,472,096 | 1,414,762 | 3,449 | 900 | |||||||||||||
Class A | — | — | 33 | 68 | |||||||||||||
Class C | — | — | — | 50 | |||||||||||||
Class R3 | — | — | — | — | |||||||||||||
Proceeds from reinvestment of dividends and distributions: | |||||||||||||||||
Investor Class | 103,772 | — | — | — | |||||||||||||
Trust Class | 104,665 | — | — | — | |||||||||||||
Advisor Class | 30,703 | — | — | — | |||||||||||||
Institutional Class | 178,822 | — | 71 | — | |||||||||||||
Class A | — | — | 6 | — | |||||||||||||
Class C | — | — | 4 | — | |||||||||||||
Class R3 | — | — | — | — |
172
Statements of Changes in Net Assets (cont'd)
Neuberger Berman Equity Funds (cont'd)
(000's omitted)
EMERGING MARKETS EQUITY FUND | EQUITY INCOME FUND | FOCUS FUND | |||||||||||||||||||||||
Year Ended August 31, 2012 | Year Ended August 31, 2011 | Year Ended August 31, 2012 | Year Ended August 31, 2011 | Year Ended August 31, 2012 | Year Ended August 31, 2011 | ||||||||||||||||||||
Payments for shares redeemed: | |||||||||||||||||||||||||
Investor Class | — | — | — | — | (49,657 | ) | (65,924 | ) | |||||||||||||||||
Trust Class | — | — | — | — | (6,389 | ) | (6,321 | ) | |||||||||||||||||
Advisor Class | — | — | — | — | (3,702 | ) | (2,423 | ) | |||||||||||||||||
Institutional Class | (64,878 | ) | (18,015 | ) | (261,948 | ) | (78,082 | ) | (1,750 | ) | (313 | ) | |||||||||||||
Class A | (2,969 | ) | (7,828 | ) | (220,565 | ) | (166,272 | ) | (136 | ) | (106 | ) | |||||||||||||
Class C | (786 | ) | (92 | ) | (39,610 | ) | (11,301 | ) | (27 | ) | — | ||||||||||||||
Class R3 | (734 | ) | — | (75 | ) | — | — | — | |||||||||||||||||
Redemption fees retained: | |||||||||||||||||||||||||
Investor Class | — | — | — | — | — | — | |||||||||||||||||||
Trust Class | — | — | — | — | — | — | |||||||||||||||||||
Institutional Class | — | 8 | — | — | — | — | |||||||||||||||||||
Class A | — | 1 | — | — | — | — | |||||||||||||||||||
Class C | — | — | — | — | — | — | |||||||||||||||||||
Class R3 | — | — | — | — | — | — | |||||||||||||||||||
Net increase (decrease) from Fund share transactions | 61,200 | 110,909 | 983,542 | 1,120,377 | (50,371 | ) | (58,521 | ) | |||||||||||||||||
Voluntary Contribution from Management (Note B) | — | — | — | — | — | — | |||||||||||||||||||
Net Increase (Decrease) in Net Assets | 53,752 | 99,114 | 1,105,277 | 1,180,634 | 28,025 | 29,454 | |||||||||||||||||||
Net Assets: | |||||||||||||||||||||||||
Beginning of year | 113,734 | 14,620 | 1,502,125 | 321,491 | 535,001 | 505,547 | |||||||||||||||||||
End of year | $ | 167,486 | $ | 113,734 | $ | 2,607,402 | $ | 1,502,125 | $ | 563,026 | $ | 535,001 | |||||||||||||
Undistributed net investment income (loss) at end of year | $ | 627 | $ | 413 | $ | — | $ | 483 | $ | 3,817 | $ | 2,770 | |||||||||||||
Distributions in excess of net investment income at end of year | $ | — | $ | — | $ | (1,593 | ) | $ | — | $ | — | $ | — |
See Notes to Financial Statements
173
GENESIS FUND | GLOBAL EQUITY FUND | ||||||||||||||||
Year Ended August 31, 2012 | Year Ended August 31, 2011 | Year Ended August 31, 2012 | Period from June 30, 2011 (Commencement of Operations) to August 31, 2011 | ||||||||||||||
Payments for shares redeemed: | |||||||||||||||||
Investor Class | (440,618 | ) | (557,618 | ) | — | — | |||||||||||
Trust Class | (1,111,336 | ) | (1,124,133 | ) | — | — | |||||||||||
Advisor Class | (238,605 | ) | (186,185 | ) | — | — | |||||||||||
Institutional Class | (1,061,533 | ) | (1,099,210 | ) | (6 | ) | — | ||||||||||
Class A | — | — | (1 | ) | — | ||||||||||||
Class C | — | — | — | — | |||||||||||||
Class R3 | — | — | — | — | |||||||||||||
Redemption fees retained: | |||||||||||||||||
Investor Class | — | — | — | — | |||||||||||||
Trust Class | — | — | — | — | |||||||||||||
Institutional Class | — | — | — | — | |||||||||||||
Class A | — | — | — | — | |||||||||||||
Class C | — | — | — | — | |||||||||||||
Class R3 | — | — | — | — | |||||||||||||
Net increase (decrease) from Fund share transactions | 146,627 | (312,190 | ) | 3,556 | 1,018 | ||||||||||||
Voluntary Contribution from Management (Note B) | — | — | — | — | |||||||||||||
Net Increase (Decrease) in Net Assets | 410,105 | 2,327,152 | 3,551 | 926 | |||||||||||||
Net Assets: | |||||||||||||||||
Beginning of year | 11,170,384 | 8,843,232 | 926 | — | |||||||||||||
End of year | $ | 11,580,489 | $ | 11,170,384 | $ | 4,477 | $ | 926 | |||||||||
Undistributed net investment income (loss) at end of year | $ | — | $ | 95,413 | $ | — | $ | (1 | ) | ||||||||
Distributions in excess of net investment income at end of year | $ | — | $ | — | $ | (6 | ) | $ | — |
174
Statements of Changes in Net Assets (cont'd)
Neuberger Berman Equity Funds
(000's omitted)
GLOBAL THEMATIC OPPORTUNITIES FUND | GUARDIAN FUND | INTERNATIONAL FUND | |||||||||||||||||||||||
Year Ended August 31, 2012 | Period from June 30, 2011 (Commencement of Operations) to August 31, 2011 | Year Ended August 31, 2012 | Year Ended August 31, 2011 | Year Ended August 31, 2012 | Year Ended August 31, 2011 | ||||||||||||||||||||
Increase (Decrease) in Net Assets: | |||||||||||||||||||||||||
From Operations (Note A): | |||||||||||||||||||||||||
Net investment income (loss) | $ | 219 | $ | (4 | ) | $ | 8,768 | $ | 8,382 | $ | 2,313 | $ | 2,659 | ||||||||||||
Net realized gain (loss) on investments | (3,544 | ) | (96 | ) | 34,173 | 103,188 | 8,301 | 40,154 | |||||||||||||||||
Change in net unrealized appreciation (depreciation) of investments | 1,324 | (1,010 | ) | 63,165 | 91,224 | (13,098 | ) | 10,361 | |||||||||||||||||
Net increase (decrease) in net assets resulting from operations | (2,001 | ) | (1,110 | ) | 106,106 | 202,794 | (2,484 | ) | 53,174 | ||||||||||||||||
Distributions to Shareholders From (Note A): | |||||||||||||||||||||||||
Net investment income: | |||||||||||||||||||||||||
Investor Class | — | — | (6,591 | ) | (3,466 | ) | (1,365 | ) | (2,185 | ) | |||||||||||||||
Trust Class | — | — | (913 | ) | (310 | ) | (686 | ) | (1,529 | ) | |||||||||||||||
Advisor Class | — | — | (2 | ) | — | — | — | ||||||||||||||||||
Institutional Class | (62 | ) | — | (459 | ) | (36 | ) | — | — | ||||||||||||||||
Class A | (0 | ) | — | (122 | ) | (22 | ) | (9 | ) | — | |||||||||||||||
Class C | (0 | ) | — | (4 | ) | (1 | ) | — | — | ||||||||||||||||
Class R3 | — | — | (6 | ) | (1 | ) | — | — | |||||||||||||||||
Net realized gain on investments: | |||||||||||||||||||||||||
Investor Class | — | — | — | — | — | — | |||||||||||||||||||
Trust Class | — | — | — | — | — | — | |||||||||||||||||||
Advisor Class | — | — | — | — | — | — | |||||||||||||||||||
Institutional Class | — | — | — | — | — | — | |||||||||||||||||||
Class A | — | — | — | — | — | — | |||||||||||||||||||
Class C | — | — | — | — | — | — | |||||||||||||||||||
Class R3 | — | — | — | — | — | — | |||||||||||||||||||
Tax return of capital: | |||||||||||||||||||||||||
Institutional Class | — | — | — | — | — | — | |||||||||||||||||||
Class A | — | — | — | — | — | — | |||||||||||||||||||
Class C | — | — | — | — | — | — | |||||||||||||||||||
Total distributions to shareholders | (62 | ) | — | (8,097 | ) | (3,836 | ) | (2,060 | ) | (3,714 | ) | ||||||||||||||
From Fund Share Transactions (Note D): | |||||||||||||||||||||||||
Proceeds from shares sold: | |||||||||||||||||||||||||
Investor Class | — | — | 17,464 | 32,695 | 4,660 | 10,846 | |||||||||||||||||||
Trust Class | — | — | 25,712 | 33,092 | 13,256 | 18,131 | |||||||||||||||||||
Advisor Class | — | — | 110 | 117 | — | — | |||||||||||||||||||
Institutional Class | 31,905 | 29,484 | 33,871 | 36,674 | — | — | |||||||||||||||||||
Class A | 631 | 171 | 10,228 | 10,427 | 3,955 | 830 | |||||||||||||||||||
Class C | 87 | 77 | 268 | 800 | 159 | 57 | |||||||||||||||||||
Class R3 | — | — | 472 | 473 | — | — | |||||||||||||||||||
Proceeds from reinvestment of dividends and distributions: | |||||||||||||||||||||||||
Investor Class | — | — | 6,172 | 3,241 | 1,207 | 1,940 | |||||||||||||||||||
Trust Class | — | — | 882 | 297 | 649 | 1,448 | |||||||||||||||||||
Advisor Class | — | — | 2 | — | — | — | |||||||||||||||||||
Institutional Class | 62 | — | 415 | 31 | — | — | |||||||||||||||||||
Class A | — | — | 111 | 22 | 8 | — | |||||||||||||||||||
Class C | — | — | 3 | 1 | — | — | |||||||||||||||||||
Class R3 | — | — | 3 | — | — | — |
See Notes to Financial Statements
175
INTERNATIONAL INSTITUTIONAL FUND | INTERNATIONAL LARGE CAP FUND | ||||||||||||||||
Year Ended August 31, 2012 | Year Ended August 31, 2011 | Year Ended August 31, 2012 | Year Ended August 31, 2011 | ||||||||||||||
Increase (Decrease) in Net Assets: | |||||||||||||||||
From Operations (Note A): | |||||||||||||||||
Net investment income (loss) | $ | 7,347 | $ | 4,342 | $ | 3,224 | $ | 2,826 | |||||||||
Net realized gain (loss) on investments | (8,024 | ) | 8,683 | (3,280 | ) | 10,193 | |||||||||||
Change in net unrealized appreciation (depreciation) of investments | 10,750 | 1,376 | (25 | ) | 8,802 | ||||||||||||
Net increase (decrease) in net assets resulting from operations | 10,073 | 14,401 | (81 | ) | 21,821 | ||||||||||||
Distributions to Shareholders From (Note A): | |||||||||||||||||
Net investment income: | |||||||||||||||||
Investor Class | — | — | — | — | |||||||||||||
Trust Class | — | — | (179 | ) | (161 | ) | |||||||||||
Advisor Class | — | — | — | — | |||||||||||||
Institutional Class | (4,223 | ) | (3,471 | ) | (2,615 | ) | (1,114 | ) | |||||||||
Class A | — | — | (68 | ) | (62 | ) | |||||||||||
Class C | — | — | (8 | ) | (8 | ) | |||||||||||
Class R3 | — | — | (1 | ) | (0 | ) | |||||||||||
Net realized gain on investments: | |||||||||||||||||
Investor Class | — | — | — | — | |||||||||||||
Trust Class | — | — | — | — | |||||||||||||
Advisor Class | — | — | — | — | |||||||||||||
Institutional Class | — | — | — | — | |||||||||||||
Class A | — | — | — | — | |||||||||||||
Class C | — | — | — | — | |||||||||||||
Class R3 | — | — | — | — | |||||||||||||
Tax return of capital: | |||||||||||||||||
Institutional Class | — | — | — | — | |||||||||||||
Class A | — | — | — | — | |||||||||||||
Class C | — | — | — | — | |||||||||||||
Total distributions to shareholders | (4,223 | ) | (3,471 | ) | (2,871 | ) | (1,345 | ) | |||||||||
From Fund Share Transactions (Note D): | |||||||||||||||||
Proceeds from shares sold: | |||||||||||||||||
Investor Class | — | — | — | — | |||||||||||||
Trust Class | — | — | 3,074 | 5,989 | |||||||||||||
Advisor Class | — | — | — | — | |||||||||||||
Institutional Class | 189,326 | 180,832 | 36,840 | 50,530 | |||||||||||||
Class A | — | — | 5,056 | 3,705 | |||||||||||||
Class C | — | — | 2,374 | 1,030 | |||||||||||||
Class R3 | — | — | 416 | 35 | |||||||||||||
Proceeds from reinvestment of dividends and distributions: | |||||||||||||||||
Investor Class | — | — | — | — | |||||||||||||
Trust Class | — | — | 153 | 148 | |||||||||||||
Advisor Class | — | — | — | — | |||||||||||||
Institutional Class | 4,205 | 3,456 | 2,551 | 1,079 | |||||||||||||
Class A | — | — | 65 | 60 | |||||||||||||
Class C | — | — | 2 | 2 | |||||||||||||
Class R3 | — | — | 1 | — |
176
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 | |||||||||||||||||||||||
Year Ended August 31, 2012 | Period from June 30, 2011 (Commencement of Operations) to August 31, 2011 | Year Ended August 31, 2012 | Year Ended August 31, 2011 | Year Ended August 31, 2012 | Year Ended August 31, 2011 | ||||||||||||||||||||
Payments for shares redeemed: | |||||||||||||||||||||||||
Investor Class | — | — | (128,001 | ) | (127,037 | ) | (30,603 | ) | (45,429 | ) | |||||||||||||||
Trust Class | — | — | (25,304 | ) | (24,645 | ) | (39,734 | ) | (73,573 | ) | |||||||||||||||
Advisor Class | — | — | (235 | ) | (109 | ) | — | — | |||||||||||||||||
Institutional Class | (7,582 | ) | (966 | ) | (13,372 | ) | (6,573 | ) | — | — | |||||||||||||||
Class A | (146 | ) | — | (4,796 | ) | (3,569 | ) | (521 | ) | (26 | ) | ||||||||||||||
Class C | (11 | ) | — | (189 | ) | (110 | ) | (14 | ) | — | |||||||||||||||
Class R3 | — | — | (426 | ) | (115 | ) | — | — | |||||||||||||||||
Redemption fees retained: | |||||||||||||||||||||||||
Investor Class | — | — | — | — | — | 2 | |||||||||||||||||||
Trust Class | — | — | — | — | — | 1 | |||||||||||||||||||
Institutional Class | — | — | — | — | — | — | |||||||||||||||||||
Class A | — | — | — | — | — | — | |||||||||||||||||||
Class C | — | — | — | — | — | — | |||||||||||||||||||
Class R3 | — | — | — | — | — | — | |||||||||||||||||||
Net increase (decrease) from Fund share transactions | 24,946 | 28,766 | (76,610 | ) | (44,288 | ) | (46,978 | ) | (85,773 | ) | |||||||||||||||
Voluntary Contribution from Management (Note B) | — | — | — | — | — | 2,721 | |||||||||||||||||||
Net Increase (Decrease) in Net Assets | 22,883 | 27,656 | 21,399 | 154,670 | (51,522 | ) | (33,592 | ) | |||||||||||||||||
Net Assets: | |||||||||||||||||||||||||
Beginning of year | 27,656 | — | 1,111,629 | 956,959 | 301,707 | 335,299 | |||||||||||||||||||
End of year | $ | 50,539 | $ | 27,656 | $ | 1,133,028 | $ | 1,111,629 | $ | 250,185 | $ | 301,707 | |||||||||||||
Undistributed net investment income (loss) at end of year | $ | 214 | $ | (16 | ) | $ | 8,756 | $ | 8,092 | $ | — | $ | — | ||||||||||||
Distributions in excess of net investment income at end of year | $ | — | $ | — | $ | — | $ | — | $ | (421 | ) | $ | (951 | ) |
See Notes to Financial Statements
177
INTERNATIONAL INSTITUTIONAL FUND | INTERNATIONAL LARGE CAP FUND | ||||||||||||||||
Year Ended August 31, 2012 | Year Ended August 31, 2011 | Year Ended August 31, 2012 | Year Ended August 31, 2011 | ||||||||||||||
Payments for shares redeemed: | |||||||||||||||||
Investor Class | — | — | — | — | |||||||||||||
Trust Class | — | — | (6,848 | ) | (19,007 | ) | |||||||||||
Advisor Class | — | — | — | — | |||||||||||||
Institutional Class | (50,412 | ) | (20,693 | ) | (26,650 | ) | (34,663 | ) | |||||||||
Class A | — | — | (2,066 | ) | (9,229 | ) | |||||||||||
Class C | — | — | (799 | ) | (664 | ) | |||||||||||
Class R3 | — | — | (86 | ) | (24 | ) | |||||||||||
Redemption fees retained: | |||||||||||||||||
Investor Class | — | — | — | — | |||||||||||||
Trust Class | — | — | — | — | |||||||||||||
Institutional Class | — | — | — | 2 | |||||||||||||
Class A | — | — | — | — | |||||||||||||
Class C | — | — | — | — | |||||||||||||
Class R3 | — | — | — | — | |||||||||||||
Net increase (decrease) from Fund share transactions | 143,119 | 163,595 | 14,083 | (1,007 | ) | ||||||||||||
Voluntary Contribution from Management (Note B) | — | — | — | — | |||||||||||||
Net Increase (Decrease) in Net Assets | 148,969 | 174,525 | 11,131 | 19,469 | |||||||||||||
Net Assets: | |||||||||||||||||
Beginning of year | 342,597 | 168,072 | 187,475 | 168,006 | |||||||||||||
End of year | $ | 491,566 | $ | 342,597 | $ | 198,606 | $ | 187,475 | |||||||||
Undistributed net investment income (loss) at end of year | $ | 2,665 | $ | — | $ | 1,630 | $ | 1,446 | |||||||||
Distributions in excess of net investment income at end of year | $ | — | $ | — | $ | — | $ | — |
178
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, 2012 | Year Ended August 31, 2011 | Year Ended August 31, 2012 | Year Ended August 31, 2011 | Year Ended August 31, 2012 | Year Ended August 31, 2011 | ||||||||||||||||||||
Increase (Decrease) in Net Assets: | |||||||||||||||||||||||||
From Operations (Note A): | |||||||||||||||||||||||||
Net investment income (loss) | $ | (306 | ) | $ | (456 | ) | $ | 2,312 | $ | 1,095 | $ | 21,046 | $ | 8,452 | |||||||||||
Net realized gain (loss) on investments | 1,826 | 14,497 | 8,640 | 38,094 | 265,032 | 260,236 | |||||||||||||||||||
Change in net unrealized appreciation (depreciation) of investments | 13,923 | (11,232 | ) | 52,228 | 41,586 | (176,465 | ) | 65,287 | |||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 15,443 | 2,809 | 63,180 | 80,775 | 109,613 | 333,975 | |||||||||||||||||||
Distributions to Shareholders From (Note A): | |||||||||||||||||||||||||
Net investment income: | |||||||||||||||||||||||||
Investor Class | — | — | — | (3 | ) | (5,044 | ) | (1,651 | ) | ||||||||||||||||
Trust Class | — | — | — | — | (744 | ) | (41 | ) | |||||||||||||||||
Advisor Class | — | — | — | — | (781 | ) | — | ||||||||||||||||||
Institutional Class | — | (280 | ) | (1,020 | ) | (1,073 | ) | (1,276 | ) | (512 | ) | ||||||||||||||
Class A | — | (5 | ) | — | (17 | ) | (337 | ) | (1 | ) | |||||||||||||||
Class C | — | (0 | ) | — | — | — | (0 | ) | |||||||||||||||||
Class R3 | — | — | — | — | (0 | ) | (0 | ) | |||||||||||||||||
Net realized gain on investments: | |||||||||||||||||||||||||
Investor Class | — | — | (694 | ) | — | — | — | ||||||||||||||||||
Trust Class | — | — | — | — | — | — | |||||||||||||||||||
Advisor Class | — | — | — | — | — | — | |||||||||||||||||||
Institutional Class | (12,140 | ) | (3,436 | ) | (24,715 | ) | — | — | — | ||||||||||||||||
Class A | (862 | ) | (72 | ) | (2,394 | ) | — | — | — | ||||||||||||||||
Class C | (649 | ) | (3 | ) | (1,542 | ) | — | — | — | ||||||||||||||||
Class R3 | — | — | (14 | ) | — | — | — | ||||||||||||||||||
Tax return of capital: | |||||||||||||||||||||||||
Institutional Class | — | — | — | — | — | — | |||||||||||||||||||
Class A | — | — | — | — | — | — | |||||||||||||||||||
Class C | — | — | — | — | — | — | |||||||||||||||||||
Total distributions to shareholders | (13,651 | ) | (3,796 | ) | (30,379 | ) | (1,093 | ) | (8,182 | ) | (2,205 | ) | |||||||||||||
From Fund Share Transactions (Note D): | |||||||||||||||||||||||||
Proceeds from shares sold: | |||||||||||||||||||||||||
Investor Class | — | — | 4,286 | 5,825 | 24,450 | 74,334 | |||||||||||||||||||
Trust Class | — | — | — | — | 17,308 | 38,654 | |||||||||||||||||||
Advisor Class | — | — | — | — | 21,953 | 42,986 | |||||||||||||||||||
Institutional Class | 33,373 | 41,002 | 279,948 | 274,226 | 43,403 | 96,923 | |||||||||||||||||||
Class A | 4,404 | 11,755 | 51,959 | 30,062 | 41,776 | 3,028 | |||||||||||||||||||
Class C | 3,200 | 7,696 | 6,513 | 10,912 | 105 | 40 | |||||||||||||||||||
Class R3 | — | — | 178 | 379 | 589 | — | |||||||||||||||||||
Proceeds from reinvestment of dividends and distributions: | |||||||||||||||||||||||||
Investor Class | — | — | 688 | 3 | 4,822 | 1,578 | |||||||||||||||||||
Trust Class | — | — | — | — | 717 | 40 | |||||||||||||||||||
Advisor Class | — | — | — | — | 754 | — | |||||||||||||||||||
Institutional Class | 11,053 | 3,704 | 19,730 | 763 | 1,250 | 494 | |||||||||||||||||||
Class A | 713 | 77 | 2,034 | 14 | 336 | 1 | |||||||||||||||||||
Class C | 225 | 2 | 413 | — | — | — | |||||||||||||||||||
Class R3 | — | — | 1 | — | — | — |
See Notes to Financial Statements
179
MID CAP GROWTH FUND | MID CAP INTRINSIC VALUE FUND | ||||||||||||||||
Year Ended August 31, 2012 | Year Ended August 31, 2011 | Year Ended August 31, 2012 | Year Ended August 31, 2011 | ||||||||||||||
Increase (Decrease) in Net Assets: | |||||||||||||||||
From Operations (Note A): | |||||||||||||||||
Net investment income (loss) | $ | (2,786 | ) | $ | (2,267 | ) | $ | 499 | $ | 372 | |||||||
Net realized gain (loss) on investments | 27,805 | 65,527 | 10,085 | 12,321 | |||||||||||||
Change in net unrealized appreciation (depreciation) of investments | 34,016 | 60,375 | (1,902 | ) | 7,548 | ||||||||||||
Net increase (decrease) in net assets resulting from operations | 59,035 | 123,635 | 8,682 | 20,241 | |||||||||||||
Distributions to Shareholders From (Note A): | |||||||||||||||||
Net investment income: | |||||||||||||||||
Investor Class | — | — | (193 | ) | (65 | ) | |||||||||||
Trust Class | — | — | (94 | ) | (43 | ) | |||||||||||
Advisor Class | — | — | — | — | |||||||||||||
Institutional Class | — | — | (26 | ) | (3 | ) | |||||||||||
Class A | — | — | (12 | ) | (0 | ) | |||||||||||
Class C | — | — | — | — | |||||||||||||
Class R3 | — | — | (0 | ) | — | ||||||||||||
Net realized gain on investments: | |||||||||||||||||
Investor Class | (637 | ) | — | — | — | ||||||||||||
Trust Class | (9 | ) | — | — | — | ||||||||||||
Advisor Class | — | — | — | — | |||||||||||||
Institutional Class | (600 | ) | — | — | — | ||||||||||||
Class A | (19 | ) | — | — | — | ||||||||||||
Class C | — | — | — | — | |||||||||||||
Class R3 | — | — | — | — | |||||||||||||
Tax return of capital: | |||||||||||||||||
Institutional Class | — | — | — | — | |||||||||||||
Class A | — | — | — | — | |||||||||||||
Class C | — | — | — | — | |||||||||||||
Total distributions to shareholders | (1,265 | ) | — | (325 | ) | (111 | ) | ||||||||||
From Fund Share Transactions (Note D): | |||||||||||||||||
Proceeds from shares sold: | |||||||||||||||||
Investor Class | 9,542 | 10,733 | 5,604 | 7,185 | |||||||||||||
Trust Class | 24,782 | 8,510 | 1,791 | 5,314 | |||||||||||||
Advisor Class | 3,283 | 4,083 | — | — | |||||||||||||
Institutional Class | 80,649 | 62,788 | 1,707 | 3,620 | |||||||||||||
Class A | 51,637 | 16,606 | 2,958 | 1,432 | |||||||||||||
Class C | 1,883 | 405 | 278 | 93 | |||||||||||||
Class R3 | 3,110 | 747 | 11 | 124 | |||||||||||||
Proceeds from reinvestment of dividends and distributions: | |||||||||||||||||
Investor Class | 583 | — | 182 | 62 | |||||||||||||
Trust Class | 9 | — | 89 | 41 | |||||||||||||
Advisor Class | — | — | — | — | |||||||||||||
Institutional Class | 587 | — | 24 | 3 | |||||||||||||
Class A | 19 | — | 9 | — | |||||||||||||
Class C | — | — | — | — | |||||||||||||
Class R3 | — | — | — | — |
180
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, 2012 | Year Ended August 31, 2011 | Year Ended August 31, 2012 | Year Ended August 31, 2011 | Year Ended August 31, 2012 | Year Ended August 31, 2011 | ||||||||||||||||||||
Payments for shares redeemed: | |||||||||||||||||||||||||
Investor Class | — | — | (3,368 | ) | (3,962 | ) | (205,342 | ) | (268,716 | ) | |||||||||||||||
Trust Class | — | — | — | — | (247,987 | ) | (251,604 | ) | |||||||||||||||||
Advisor Class | — | — | — | — | (124,007 | ) | (126,640 | ) | |||||||||||||||||
Institutional Class | (26,719 | ) | (12,601 | ) | (291,213 | ) | (120,864 | ) | (153,702 | ) | (61,130 | ) | |||||||||||||
Class A | (5,390 | ) | (2,413 | ) | (30,384 | ) | (30,147 | ) | (42,840 | ) | (1,356 | ) | |||||||||||||
Class C | (2,012 | ) | (1,008 | ) | (11,602 | ) | (10,420 | ) | (11 | ) | — | ||||||||||||||
Class R3 | — | — | (174 | ) | (126 | ) | — | — | |||||||||||||||||
Redemption fees retained: | |||||||||||||||||||||||||
Investor Class | — | — | — | — | — | — | |||||||||||||||||||
Trust Class | — | — | — | — | — | — | |||||||||||||||||||
Institutional Class | — | — | — | — | — | — | |||||||||||||||||||
Class A | — | — | — | — | — | — | |||||||||||||||||||
Class C | — | — | — | — | — | — | |||||||||||||||||||
Class R3 | — | — | — | — | — | — | |||||||||||||||||||
Net increase (decrease) from Fund share transactions | 18,847 | 48,214 | 29,009 | 156,665 | (616,426 | ) | (451,368 | ) | |||||||||||||||||
Voluntary Contribution from Management (Note B) | — | — | — | — | — | — | |||||||||||||||||||
Net Increase (Decrease) in Net Assets | 20,639 | 47,227 | 61,810 | 236,347 | (514,995 | ) | (119,598 | ) | |||||||||||||||||
Net Assets: | |||||||||||||||||||||||||
Beginning of year | 128,848 | 81,621 | 658,386 | 422,039 | 2,107,409 | 2,227,007 | |||||||||||||||||||
End of year | $ | 149,487 | $ | 128,848 | $ | 720,196 | $ | 658,386 | $ | 1,592,414 | $ | 2,107,409 | |||||||||||||
Undistributed net investment income (loss) at end of year | $ | (265 | ) | $ | — | $ | 2,292 | $ | 1,001 | $ | 20,872 | $ | 8,175 | ||||||||||||
Distributions in excess of net investment income at end of year | $ | — | $ | (179 | ) | $ | — | $ | — | $ | — | $ | — |
See Notes to Financial Statements
181
MID CAP GROWTH FUND | MID CAP INTRINSIC VALUE FUND | ||||||||||||||||
Year Ended August 31, 2012 | Year Ended August 31, 2011 | Year Ended August 31, 2012 | Year Ended August 31, 2011 | ||||||||||||||
Payments for shares redeemed: | |||||||||||||||||
Investor Class | (31,832 | ) | (45,446 | ) | (11,497 | ) | (26,056 | ) | |||||||||
Trust Class | (16,029 | ) | (8,218 | ) | (9,950 | ) | (72,798 | ) | |||||||||
Advisor Class | (2,991 | ) | (2,007 | ) | — | — | |||||||||||
Institutional Class | (35,317 | ) | (99,978 | ) | (1,255 | ) | (517 | ) | |||||||||
Class A | (18,501 | ) | (9,011 | ) | (888 | ) | (134 | ) | |||||||||
Class C | (237 | ) | (62 | ) | — | (10 | ) | ||||||||||
Class R3 | (822 | ) | (356 | ) | — | — | |||||||||||
Redemption fees retained: | |||||||||||||||||
Investor Class | — | — | — | — | |||||||||||||
Trust Class | — | — | — | — | |||||||||||||
Institutional Class | — | — | — | — | |||||||||||||
Class A | — | — | — | — | |||||||||||||
Class C | — | — | — | — | |||||||||||||
Class R3 | — | — | — | — | |||||||||||||
Net increase (decrease) from Fund share transactions | 70,355 | (61,206 | ) | (10,937 | ) | (81,641 | ) | ||||||||||
Voluntary Contribution from Management (Note B) | — | — | — | — | |||||||||||||
Net Increase (Decrease) in Net Assets | 128,125 | 62,429 | (2,580 | ) | (61,511 | ) | |||||||||||
Net Assets: | |||||||||||||||||
Beginning of year | 512,655 | 450,226 | 75,667 | 137,178 | |||||||||||||
End of year | $ | 640,780 | $ | 512,655 | $ | 73,087 | $ | 75,667 | |||||||||
Undistributed net investment income (loss) at end of year | $ | (2,110 | ) | $ | — | $ | 460 | $ | 295 | ||||||||
Distributions in excess of net investment income at end of year | $ | — | $ | — | $ | — | $ | — |
182
Statements of Changes in Net Assets (cont'd)
Neuberger Berman Equity Funds
(000's omitted)
MULTI-CAP OPPORTUNITIES FUND | REAL ESTATE FUND | SELECT EQUITIES FUND | |||||||||||||||||||||||
Year Ended August 31, 2012 | Year Ended August 31, 2011 | Year Ended August 31, 2012 | Year Ended August 31, 2011 | Year Ended August 31, 2012 | Year Ended August 31, 2011 | ||||||||||||||||||||
Increase (Decrease) in Net Assets: | |||||||||||||||||||||||||
From Operations (Note A): | |||||||||||||||||||||||||
Net investment income (loss) | $ | 3,305 | $ | 388 | $ | 4,985 | $ | 2,010 | $ | (102 | ) | $ | 176 | ||||||||||||
Net realized gain (loss) on investments | 3,496 | 3,155 | 19,800 | 14,550 | 3,307 | 6,095 | |||||||||||||||||||
Change in net unrealized appreciation (depreciation) of investments | 23,582 | 5,545 | 59,096 | 11,482 | 4,444 | 4,810 | |||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 30,383 | 9,088 | 83,881 | 28,042 | 7,649 | 11,081 | |||||||||||||||||||
Distributions to Shareholders From (Note A): | |||||||||||||||||||||||||
Net investment income: | |||||||||||||||||||||||||
Investor Class | — | — | — | — | — | — | |||||||||||||||||||
Trust Class | — | — | (3,514 | ) | (3,358 | ) | — | — | |||||||||||||||||
Advisor Class | — | — | — | — | — | — | |||||||||||||||||||
Institutional Class | (257 | ) | (363 | ) | (2,540 | ) | (1,252 | ) | (62 | ) | (165 | ) | |||||||||||||
Class A | (0 | ) | (1 | ) | (681 | ) | (238 | ) | — | (75 | ) | ||||||||||||||
Class C | — | — | (79 | ) | (33 | ) | — | — | |||||||||||||||||
Class R3 | — | — | (22 | ) | (2 | ) | — | — | |||||||||||||||||
Net realized gain on investments: | |||||||||||||||||||||||||
Investor Class | — | — | — | — | — | — | |||||||||||||||||||
Trust Class | — | — | (998 | ) | — | — | — | ||||||||||||||||||
Advisor Class | — | — | — | — | — | — | |||||||||||||||||||
Institutional Class | (3,256 | ) | — | (650 | ) | — | (2,106 | ) | (588 | ) | |||||||||||||||
Class A | (10 | ) | — | (217 | ) | — | (2,335 | ) | (936 | ) | |||||||||||||||
Class C | (7 | ) | — | (51 | ) | — | (923 | ) | (374 | ) | |||||||||||||||
Class R3 | — | — | (8 | ) | — | — | — | ||||||||||||||||||
Tax return of capital: | |||||||||||||||||||||||||
Institutional Class | — | — | — | — | — | — | |||||||||||||||||||
Class A | — | — | — | — | — | — | |||||||||||||||||||
Class C | — | — | — | — | — | — | |||||||||||||||||||
Total distributions to shareholders | (3,530 | ) | (364 | ) | (8,760 | ) | (4,883 | ) | (5,426 | ) | (2,138 | ) | |||||||||||||
From Fund Share Transactions (Note D): | |||||||||||||||||||||||||
Proceeds from shares sold: | |||||||||||||||||||||||||
Investor Class | — | — | — | — | — | — | |||||||||||||||||||
Trust Class | — | — | 110,949 | 138,594 | — | — | |||||||||||||||||||
Advisor Class | — | — | — | — | — | — | |||||||||||||||||||
Institutional Class | 383,753 | 69,807 | 125,290 | 108,485 | 6,440 | 15,320 | |||||||||||||||||||
Class A | 2,776 | 559 | 46,011 | 44,074 | 5,242 | 11,389 | |||||||||||||||||||
Class C | 180 | 155 | 11,776 | 8,984 | 1,641 | 2,667 | |||||||||||||||||||
Class R3 | — | — | 4,932 | 355 | — | — | |||||||||||||||||||
Proceeds from reinvestment of dividends and distributions: | |||||||||||||||||||||||||
Investor Class | — | — | — | — | — | — | |||||||||||||||||||
Trust Class | — | — | 4,426 | 3,267 | — | — | |||||||||||||||||||
Advisor Class | — | �� | — | — | — | — | — | ||||||||||||||||||
Institutional Class | 388 | 16 | 2,218 | 643 | 1,725 | 653 | |||||||||||||||||||
Class A | 6 | — | 779 | 207 | 2,128 | 915 | |||||||||||||||||||
Class C | 5 | — | 99 | 21 | 697 | 237 | |||||||||||||||||||
Class R3 | — | — | 22 | 2 | — | — |
See Notes to Financial Statements
183
SMALL CAP GROWTH FUND | SOCIALLY RESPONSIVE FUND | ||||||||||||||||
Year Ended August 31, 2012 | Year Ended August 31, 2011 | Year Ended August 31, 2012 | Year Ended August 31, 2011 | ||||||||||||||
Increase (Decrease) in Net Assets: | |||||||||||||||||
From Operations (Note A): | |||||||||||||||||
Net investment income (loss) | $ | (1,136 | ) | $ | (1,759 | ) | $ | 14,414 | $ | 9,945 | |||||||
Net realized gain (loss) on investments | 19,098 | 51,081 | 58,770 | 77,087 | |||||||||||||
Change in net unrealized appreciation (depreciation) of investments | (6,745 | ) | 7,233 | 67,730 | 112,965 | ||||||||||||
Net increase (decrease) in net assets resulting from operations | 11,217 | 56,555 | 140,914 | 199,997 | |||||||||||||
Distributions to Shareholders From (Note A): | |||||||||||||||||
Net investment income: | |||||||||||||||||
Investor Class | — | — | (3,089 | ) | (921 | ) | |||||||||||
Trust Class | — | — | (3,004 | ) | (696 | ) | |||||||||||
Advisor Class | — | — | — | — | |||||||||||||
Institutional Class | — | — | (2,793 | ) | (765 | ) | |||||||||||
Class A | — | — | (623 | ) | (104 | ) | |||||||||||
Class C | — | — | (37 | ) | (6 | ) | |||||||||||
Class R3 | — | — | (96 | ) | (4 | ) | |||||||||||
Net realized gain on investments: | |||||||||||||||||
Investor Class | — | — | — | — | |||||||||||||
Trust Class | — | — | — | — | |||||||||||||
Advisor Class | — | — | — | — | |||||||||||||
Institutional Class | — | — | — | — | |||||||||||||
Class A | — | — | — | — | |||||||||||||
Class C | — | — | — | — | |||||||||||||
Class R3 | — | — | — | — | |||||||||||||
Tax return of capital: | |||||||||||||||||
Institutional Class | — | — | — | — | |||||||||||||
Class A | — | — | — | — | |||||||||||||
Class C | — | — | — | — | |||||||||||||
Total distributions to shareholders | — | — | (9,642 | ) | (2,496 | ) | |||||||||||
From Fund Share Transactions (Note D): | |||||||||||||||||
Proceeds from shares sold: | |||||||||||||||||
Investor Class | 3,704 | 5,673 | 180,373 | 139,144 | |||||||||||||
Trust Class | 1,809 | 4,236 | 110,344 | 164,774 | |||||||||||||
Advisor Class | 1,317 | 3,396 | — | — | |||||||||||||
Institutional Class | 5,807 | 24,584 | 167,990 | 281,194 | |||||||||||||
Class A | 1,093 | 2,105 | 33,348 | 71,454 | |||||||||||||
Class C | 485 | 183 | 4,785 | 10,253 | |||||||||||||
Class R3 | 151 | 18 | 10,489 | 10,856 | |||||||||||||
Proceeds from reinvestment of dividends and distributions: | |||||||||||||||||
Investor Class | — | — | 2,906 | 867 | |||||||||||||
Trust Class | — | — | 2,971 | 687 | |||||||||||||
Advisor Class | — | — | — | — | |||||||||||||
Institutional Class | — | — | 2,664 | 718 | |||||||||||||
Class A | — | — | 517 | 86 | |||||||||||||
Class C | — | — | 27 | 4 | |||||||||||||
Class R3 | — | — | 94 | 3 |
184
Statements of Changes in Net Assets (cont'd)
Neuberger Berman Equity Funds (cont'd)
(000's omitted)
MULTI-CAP OPPORTUNITIES FUND | REAL ESTATE FUND | SELECT EQUITIES FUND | |||||||||||||||||||||||
Year Ended August 31, 2012 | Year Ended August 31, 2011 | Year Ended August 31, 2012 | Year Ended August 31, 2011 | Year Ended August 31, 2012 | Year Ended August 31, 2011 | ||||||||||||||||||||
Payments for shares redeemed: | |||||||||||||||||||||||||
Investor Class | — | — | — | — | — | — | |||||||||||||||||||
Trust Class | — | — | (80,324 | ) | (72,565 | ) | — | — | |||||||||||||||||
Advisor Class | — | — | — | — | — | — | |||||||||||||||||||
Institutional Class | (36,160 | ) | (34,607 | ) | (42,253 | ) | (17,479 | ) | (9,401 | ) | (8,413 | ) | |||||||||||||
Class A | (508 | ) | (744 | ) | (13,661 | ) | (8,698 | ) | (10,087 | ) | (24,490 | ) | |||||||||||||
Class C | (93 | ) | — | (1,515 | ) | (770 | ) | (4,115 | ) | (2,924 | ) | ||||||||||||||
Class R3 | — | — | (901 | ) | (39 | ) | — | — | |||||||||||||||||
Redemption fees retained: | |||||||||||||||||||||||||
Investor Class | — | — | — | — | — | — | |||||||||||||||||||
Trust Class | — | — | — | 83 | — | — | |||||||||||||||||||
Institutional Class | — | — | — | 27 | — | — | |||||||||||||||||||
Class A | — | — | — | 7 | — | — | |||||||||||||||||||
Class C | — | — | — | 1 | — | — | |||||||||||||||||||
Class R3 | — | — | — | — | — | — | |||||||||||||||||||
Net increase (decrease) from Fund share transactions | 350,347 | 35,186 | 167,848 | 205,199 | (5,730 | ) | (4,646 | ) | |||||||||||||||||
Voluntary Contribution from Management (Note B) | — | — | — | — | — | — | |||||||||||||||||||
Net Increase (Decrease) in Net Assets | 377,200 | 43,910 | 242,969 | 228,358 | (3,507 | ) | 4,297 | ||||||||||||||||||
Net Assets: | |||||||||||||||||||||||||
Beginning of year | 91,465 | 47,555 | 378,396 | 150,038 | 71,428 | 67,131 | |||||||||||||||||||
End of year | $ | 468,665 | $ | 91,465 | $ | 621,365 | $ | 378,396 | $ | 67,921 | $ | 71,428 | |||||||||||||
Undistributed net investment income (loss) at end of year | $ | 3,252 | $ | 204 | $ | — | $ | — | $ | — | $ | 50 | |||||||||||||
Distributions in excess of net investment income at end of year | $ | — | $ | — | $ | — | $ | — | $ | (11 | ) | $ | — |
See Notes to Financial Statements
185
SMALL CAP GROWTH FUND | SOCIALLY RESPONSIVE FUND | ||||||||||||||||
Year Ended August 31, 2012 | Year Ended August 31, 2011 | Year Ended August 31, 2012 | Year Ended August 31, 2011 | ||||||||||||||
Payments for shares redeemed: | |||||||||||||||||
Investor Class | (12,911 | ) | (38,006 | ) | (160,774 | ) | (187,556 | ) | |||||||||
Trust Class | (6,732 | ) | (13,552 | ) | (144,546 | ) | (101,822 | ) | |||||||||
Advisor Class | (3,881 | ) | (8,117 | ) | — | — | |||||||||||
Institutional Class | (78,776 | ) | (30,528 | ) | (110,839 | ) | (51,612 | ) | |||||||||
Class A | (1,311 | ) | (1,630 | ) | (32,424 | ) | (7,369 | ) | |||||||||
Class C | (197 | ) | (11 | ) | (1,984 | ) | (695 | ) | |||||||||
Class R3 | (9 | ) | (5 | ) | (3,276 | ) | (1,046 | ) | |||||||||
Redemption fees retained: | |||||||||||||||||
Investor Class | — | — | — | — | |||||||||||||
Trust Class | — | — | — | — | |||||||||||||
Institutional Class | — | — | — | — | |||||||||||||
Class A | — | — | — | — | |||||||||||||
Class C | — | — | — | — | |||||||||||||
Class R3 | — | — | — | — | |||||||||||||
Net increase (decrease) from Fund share transactions | (89,451 | ) | (51,654 | ) | 62,665 | 329,940 | |||||||||||
Voluntary Contribution from Management (Note B) | — | — | — | — | |||||||||||||
Net Increase (Decrease) in Net Assets | (78,234 | ) | 4,901 | 193,937 | 527,441 | ||||||||||||
Net Assets: | |||||||||||||||||
Beginning of year | 195,306 | 190,405 | 1,648,965 | 1,121,524 | |||||||||||||
End of year | $ | 117,072 | $ | 195,306 | $ | 1,842,902 | $ | 1,648,965 | |||||||||
Undistributed net investment income (loss) at end of year | $ | (763 | ) | $ | — | $ | 14,229 | $ | 9,638 | ||||||||
Distributions in excess of net investment income at end of year | $ | — | $ | — | $ | — | $ | — |
186
Statements of Changes in Net Assets (cont'd)
Neuberger Berman Equity Funds
(000's omitted)
VALUE FUND | |||||||||
Year Ended August 31, 2012 | Year Ended August 31, 2011 | ||||||||
Increase (Decrease) in Net Assets: | |||||||||
From Operations (Note A): | |||||||||
Net investment income (loss) | $ | 46 | $ | 20 | |||||
Net realized gain (loss) on investments | 169 | 239 | |||||||
Change in net unrealized appreciation (depreciation) of investments | 105 | 8 | |||||||
Net increase (decrease) in net assets resulting from operations | 320 | 267 | |||||||
Distributions to Shareholders From (Note A): | |||||||||
Net investment income: | |||||||||
Investor Class | — | — | |||||||
Trust Class | — | — | |||||||
Advisor Class | — | — | |||||||
Institutional Class | (16 | ) | (11 | ) | |||||
Class A | (3 | ) | — | ||||||
Class C | (0 | ) | — | ||||||
Class R3 | — | — | |||||||
Net realized gain on investments: | |||||||||
Investor Class | — | — | |||||||
Trust Class | — | — | |||||||
Advisor Class | — | — | |||||||
Institutional Class | — | — | |||||||
Class A | — | — | |||||||
Class C | — | — | |||||||
Class R3 | — | — | |||||||
Tax return of capital: | |||||||||
Institutional Class | — | — | |||||||
Class A | — | — | |||||||
Class C | — | — | |||||||
Total distributions to shareholders | (19 | ) | (11 | ) | |||||
From Fund Share Transactions (Note D): | |||||||||
Proceeds from shares sold: | |||||||||
Investor Class | �� | — | — | ||||||
Trust Class | — | — | |||||||
Advisor Class | — | — | |||||||
Institutional Class | 2,542 | 1,833 | |||||||
Class A | 1,305 | 365 | |||||||
Class C | 22 | 31 | |||||||
Class R3 | — | — | |||||||
Proceeds from reinvestment of dividends and distributions: | |||||||||
Investor Class | — | — | |||||||
Trust Class | — | — | |||||||
Advisor Class | — | — | |||||||
Institutional Class | 16 | 11 | |||||||
Class A | 3 | — | |||||||
Class C | — | — | |||||||
Class R3 | — | — |
See Notes to Financial Statements
187
Statements of Changes in Net Assets (cont'd)
Neuberger Berman Equity Funds (cont'd)
(000's omitted)
VALUE FUND | |||||||||
Year Ended August 31, 2012 | Year Ended August 31, 2011 | ||||||||
Payments for shares redeemed: | |||||||||
Investor Class | — | — | |||||||
Trust Class | — | — | |||||||
Advisor Class | — | — | |||||||
Institutional Class | (2,733 | ) | (677 | ) | |||||
Class A | (168 | ) | — | ||||||
Class C | — | — | |||||||
Class R3 | — | — | |||||||
Redemption fees retained: | |||||||||
Investor Class | — | — | |||||||
Trust Class | — | — | |||||||
Institutional Class | — | — | |||||||
Class A | — | — | |||||||
Class C | — | — | |||||||
Class R3 | — | — | |||||||
Net increase (decrease) from Fund share transactions | 987 | 1,563 | |||||||
Voluntary Contribution from Management (Note B) | — | — | |||||||
Net Increase (Decrease) in Net Assets | 1,288 | 1,819 | |||||||
Net Assets: | |||||||||
Beginning of year | 3,026 | 1,207 | |||||||
End of year | $ | 4,314 | $ | 3,026 | |||||
Undistributed net investment income (loss) at end of year | $ | 47 | $ | 20 | |||||
Distributions in excess of net investment income at end of year | $ | — | $ | — |
See Notes to Financial Statements
188
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 1933 Act. The Funds are separate operating series of the Trust, each of which (except Multi-Cap Opportunities, Real Estate (effective June 19, 2012) 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. 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, 2012 were $581, $96,904, $577,736, $337,798, $103,704, $122,104, $868, $52,085, $66,354, $83,446, $919, $6,016, $9,520 and $17,274 for Equity Income, Focus, Genesis, Guardian, International, Intrinsic Value, Large Cap Disciplined Growth, Large Cap Value, Mid Cap Growth, Mid Cap Intrinsic Value, Multi-Cap Opportunities, Real Estate, 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 to continue 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. |
189
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 2009-2011. As of August 31, 2012, 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, 2012, permanent differences resulting primarily from different book and tax accounting were reclassified at year end. Such differences may be attributed to one or more of the following: net operating losses, defaulted bonds, contingent payment debt instrument basis adjustments, premium amortization adjustments, partnership and grantor trust income adjustments, distribution redesignations, foreign capital gains tax, foreign currency gains and losses, non-deductible 12b-1 fees, non-taxable distributions from stocks, ordinary loss netting to reduce short term capital gains, passive foreign investment companies gains and losses, distributions in excess of earnings, return of capital non-taxable dividend adjustment to income 9/1/11-12/31/11, return of capital distributions and characterization of distributions from real estate investment trusts ("REITs"). These reclassifications had no effect on net income, net asset value ("NAV") or NAV per share of each Fund. For the year ended August 31, 2012, the Funds recorded the following permanent reclassifications: |
Paid-in Capital | Undistributed Net Investment Income (Loss) | Accumulated Net Realized Gains (Losses) on Investments | |||||||||||
Emerging Markets Equity | $ | (2 | ) | $ | (238,324 | ) | $ | 238,326 | |||||
Equity Income | 2 | 1,327,383 | (1,327,385 | ) | |||||||||
Focus | 1 | 61 | (62 | ) | |||||||||
Genesis | 1 | (643,290 | ) | 643,289 | |||||||||
Global Equity | (1,282 | ) | (3,529 | ) | 4,811 | ||||||||
Global Thematic Opportunities | (8,895 | ) | 72,750 | (63,855 | ) | ||||||||
Guardian | — | (7,756 | ) | 7,756 | |||||||||
International | (436,934 | ) | 276,710 | 160,224 | |||||||||
International Institutional | — | (458,040 | ) | 458,040 | |||||||||
International Large Cap | (2 | ) | (168,691 | ) | 168,693 | ||||||||
Intrinsic Value | 1 | 219,722 | (219,723 | ) | |||||||||
Large Cap Disciplined Growth | — | (1,002 | ) | 1,002 | |||||||||
Large Cap Value | — | (167,275 | ) | 167,275 | |||||||||
Mid Cap Growth | (814,684 | ) | 675,341 | 139,343 | |||||||||
Mid Cap Intrinsic Value | — | (8,816 | ) | 8,816 | |||||||||
Multi-Cap Opportunities | (1 | ) | (5 | ) | 6 | ||||||||
Real Estate | 147,609 | 1,850,284 | (1,997,893 | ) | |||||||||
Select Equities | — | 103,716 | (103,716 | ) | |||||||||
Small Cap Growth | (376,649 | ) | 373,358 | 3,291 | |||||||||
Socially Responsive | — | (180,891 | ) | 180,891 | |||||||||
Value | (1 | ) | (181 | ) | 182 |
190
For tax purposes, short-term gains are considered ordinary income. | |
The tax character of distributions paid during the years ended August 31, 2012 and August 31, 2011 were as follows: |
Distributions Paid From: | |||||||||||||||||||||||||||||||||
Ordinary Income | Long-Term Capital Gain | Return of Capital | Total | ||||||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||||||||
Emerging Markets Equity | $ | 746,994 | $ | 260,779 | $ | — | $ | 546,041 | $ | — | $ | — | $ | 746,994 | $ | 806,820 | |||||||||||||||||
Equity Income | 67,214,969 | 28,980,423 | 9,314,438 | — | — | — | 76,529,407 | 28,980,423 | |||||||||||||||||||||||||
Focus | 2,770,127 | 3,145,492 | — | — | — | — | 2,770,127 | 3,145,492 | |||||||||||||||||||||||||
Genesis | 136,435,252 | — | 295,331,935 | — | — | — | 431,767,187 | — | |||||||||||||||||||||||||
Global Equity | 32,911 | — | (1) | — | — | (1) | 48,045 | — | (1) | 80,956 | — | (1) | |||||||||||||||||||||
Global Thematic Opportunities | 62,415 | — | (1) | — | — | (1) | — | — | (1) | 62,415 | — | (1) | |||||||||||||||||||||
Guardian | 8,096,859 | 3,835,761 | — | — | — | — | 8,096,859 | 3,835,761 | |||||||||||||||||||||||||
International | 2,060,022 | 3,714,343 | — | — | — | — | 2,060,022 | 3,714,343 | |||||||||||||||||||||||||
International Institutional | 4,223,282 | 3,471,677 | — | — | — | — | 4,223,282 | 3,471,677 | |||||||||||||||||||||||||
International Large Cap | 2,871,419 | 1,345,152 | — | — | — | — | 2,871,419 | 1,345,152 | |||||||||||||||||||||||||
Intrinsic Value | 249,640 | 773,419 | 13,401,827 | 3,022,518 | — | — | 13,651,467 | 3,795,937 | |||||||||||||||||||||||||
Large Cap Disciplined Growth | 1,020,034 | 1,092,590 | 29,359,244 | — | — | — | 30,379,278 | 1,092,590 | |||||||||||||||||||||||||
Large Cap Value | 8,181,649 | 2,204,971 | — | — | — | — | 8,181,649 | 2,204,971 | |||||||||||||||||||||||||
Mid Cap Growth | — | — | 1,265,496 | — | — | — | 1,265,496 | — | |||||||||||||||||||||||||
Mid Cap Intrinsic Value | 325,011 | 111,346 | — | — | — | — | 325,011 | 111,346 | |||||||||||||||||||||||||
Multi-Cap Opportunities | 3,530,521 | 363,704 | — | — | — | — | 3,530,521 | 363,704 | |||||||||||||||||||||||||
Real Estate | 6,836,033 | 4,883,092 | 1,924,275 | — | — | — | 8,760,308 | 4,883,092 | |||||||||||||||||||||||||
Select Equities | 2,880,552 | 742,451 | 2,544,641 | 1,396,018 | — | — | 5,425,193 | 2,138,469 | |||||||||||||||||||||||||
Small Cap Growth | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Socially Responsive | 9,641,949 | 2,495,671 | — | — | — | — | 9,641,949 | 2,495,671 | |||||||||||||||||||||||||
Value | 19,494 | 11,626 | — | — | — | — | 19,494 | 11,626 |
(1) | Period from June 30, 2011 (Commencement of Operations) to August 31, 2011. |
As of August 31, 2012, the components of distributable earnings (accumulated losses) on a U.S. federal income tax basis were as follows: |
Undistributed Ordinary Income | Undistributed Long-Term Gain | Unrealized Appreciation (Depreciation) | Loss Carryforwards and Deferrals | Other Temporary Differences | Total | ||||||||||||||||||||
Emerging Markets Equity | $ | 680,400 | $ | — | $ | 3,481,279 | $ | (21,182,109 | ) | $ | (53,192 | ) | $ | (17,073,622 | ) | ||||||||||
Equity Income | 29,519,857 | 15,056,469 | 149,907,610 | — | — | 194,483,936 | |||||||||||||||||||
Focus | 3,817,288 | — | 62,906,748 | (8,642,610 | ) | — | 58,081,426 | ||||||||||||||||||
Genesis | — | 356,210,301 | 4,232,861,119 | — | — | 4,589,071,420 | |||||||||||||||||||
Global Equity | — | — | 87,301 | (135,181 | ) | — | (47,880 | ) | |||||||||||||||||
Global Thematic Opportunities | 220,507 | — | 34,175 | (3,411,454 | ) | (6,991 | ) | (3,163,763 | ) |
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Undistributed Ordinary Income | Undistributed Long-Term Gain | Unrealized Appreciation (Depreciation) | Loss Carryforwards and Deferrals | Other Temporary Differences | Total | ||||||||||||||||||||
Guardian | $ | 8,755,753 | $ | 13,953,985 | $ | 222,844,042 | $ | — | $ | — | $ | 245,553,780 | |||||||||||||
International | — | — | 30,548,896 | (180,777,530 | ) | — | (150,228,634 | ) | |||||||||||||||||
International Institutional | 3,163,200 | — | 21,677,451 | (170,748,212 | ) | (3,418 | ) | (145,910,979 | ) | ||||||||||||||||
International Large Cap | 1,685,917 | — | 14,623,654 | (62,538,379 | ) | (55,619 | ) | (46,284,427 | ) | ||||||||||||||||
Intrinsic Value | — | 1,491,741 | 6,951,495 | (1,078,867 | ) | (165,855 | ) | 7,198,514 | |||||||||||||||||
Large Cap Disciplined Growth | 2,308,031 | 14,873,933 | 82,087,576 | — | (16,147 | ) | 99,253,393 | ||||||||||||||||||
Large Cap Value | 20,872,430 | — | 79,922,878 | (33,896,855 | ) | — | 66,898,453 | ||||||||||||||||||
Mid Cap Growth | — | 4,145,137 | 177,027,082 | (2,109,814 | ) | — | 179,062,405 | ||||||||||||||||||
Mid Cap Intrinsic Value | 460,680 | — | 4,915,630 | (5,621,111 | ) | — | (244,801 | ) | |||||||||||||||||
Multi-Cap Opportunities | 5,574,775 | 2,213,209 | 23,231,318 | — | — | 31,019,302 | |||||||||||||||||||
Real Estate | — | 10,155,618 | 96,832,015 | — | — | 106,987,633 | |||||||||||||||||||
Select Equities | 285,361 | 2,915,299 | 8,282,736 | — | (10,663 | ) | 11,472,733 | ||||||||||||||||||
Small Cap Growth | — | — | 11,088,142 | (45,911,213 | ) | — | (34,823,071 | ) | |||||||||||||||||
Socially Responsive | 14,228,964 | — | 242,037,304 | (38,479,319 | ) | — | 217,786,949 | ||||||||||||||||||
Value | 46,494 | — | 68,394 | (668,046 | ) | — | (553,158 | ) |
The differences between book basis and tax basis distributable earnings are primarily due to: wash sales, defaulted bonds, common stock basis adjustments, capital loss carryforwards, 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, partnership and trust basis adjustments, 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. The Regulated Investment Company ("RIC") Modernization Act of 2010 (the "Act") became effective for the Funds on September 1, 2011. The Act modernizes several of the federal income and excise tax provisions related to RICs. 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 ("Post-Enactment"). Rules in effect previously limited the carryforward period to eight years and all carryforwards were considered short-term in character ("Pre-Enactment"). As determined at August 31, 2012, the following Funds had unused capital loss carryforwards available for federal income tax purposes to offset net realized capital gains, if any, as follows: |
Pre-Enactment | |||||||||||||
Expiring in: | |||||||||||||
2016 | 2017 | 2018 | |||||||||||
Focus | $ | — | $ | — | $ | 8,642,610 | |||||||
International | — | 62,500,511 | 114,232,268 | ||||||||||
International Institutional | — | 85,006,896 | 78,142,921 | ||||||||||
International Large Cap | — | 22,353,356 | 36,160,452 | ||||||||||
Large Cap Value | — | — | 26,442,932 | ||||||||||
Mid Cap Intrinsic Value | — | — | 5,621,111 | ||||||||||
Small Cap Growth | — | 23,924,873 | 21,223,467 | ||||||||||
Socially Responsive | — | — | 38,479,319 | ||||||||||
Value | — | — | 668,046 |
192
Post-Enactment (No Expiration Date) | |||||||||
Long-Term | Short-Term | ||||||||
Emerging Markets Equity | $ | — | $ | 6,354,644 | |||||
Global Equity | — | 17,053 | |||||||
Global Thematic Opportunities | — | 1,252,704 | |||||||
International Institutional | — | 1,177,174 |
Post-Enactment capital loss carryforwards must be fully used before Pre-Enactment capital loss carryforwards; therefore, under certain circumstances, Pre-Enactment capital loss carryforwards available as of the report date may expire unused. During the year ended August 31, 2012, Focus, Guardian, International, International Large Cap, Large Cap Value, Mid Cap Growth, Mid Cap Intrinsic Value, Real Estate, Small Cap Growth, Socially Responsive and Value utilized capital loss carryforwards of $12,749,959, $20,164,603, $9,235,724, $410,595, $279,548,269, $22,285,281, $8,745,225, $3,878,676, $18,140,041, $57,996,265 and $224,303, respectively. Under current tax regulations, capital losses on investment transactions realized after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. Under the Act, the Funds may also defer any realized late-year ordinary losses as occurring on the first day of the following fiscal year. Late-year ordinary losses represent ordinary losses realized on investment transactions after December 31 and specified losses (ordinary losses from the sale, exchange, or other disposition of property, net foreign currency losses and net passive foreign investment company mark to market losses) realized on investment transactions after October 31. For the year ended August 31, 2012, the Funds elected to defer the following late-year ordinary losses and post October capital losses: |
Late-Year Ordinary Loss Deferral | Post October Capital Loss Deferral | ||||||||
Emerging Markets Equity | $ | — | $ | 14,827,465 | |||||
Global Equity | — | 118,128 | |||||||
Global Thematic Opportunities | — | 2,158,750 | |||||||
International | — | 4,044,751 | |||||||
International Institutional | — | 6,421,221 | |||||||
International Large Cap | — | 4,024,571 | |||||||
Intrinsic Value | 99,314 | 979,553 | |||||||
Large Cap Value | — | 7,453,923 | |||||||
Mid Cap Growth | 2,109,814 | — | |||||||
Small Cap Growth | 762,873 | — |
6 | Foreign taxes: Foreign taxes withheld represent amounts withheld by foreign tax authorities, net of refunds recoverable. |
7 | Distributions to shareholders: Each Fund may earn income, net of expenses, daily on its investments. |
Distributions from net investment income and net realized capital gains, if any, generally are distributed once a year (usually in December) and are recorded on the ex-date. 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, Mid Cap Intrinsic Value and Real Estate 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, Mid Cap Intrinsic Value and Real Estate are generally composed of income, capital gains, and/or return of REIT capital, but the REITs do not report this information to Equity Income, Mid Cap Intrinsic Value and Real Estate until the following calendar year. At August 31, 2012, |
193
Equity Income, Mid Cap Intrinsic Value and Real Estate 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, 2012, the character of distributions paid to shareholders of Equity Income, Mid Cap Intrinsic Value and Real Estate 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, Mid Cap Intrinsic Value and Real Estate together with actual IRS Forms 1099DIV received to date. Based on past experience it is possible that a portion of Equity Income's, Mid Cap Intrinsic Value's and Real Estate'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, Mid Cap Intrinsic Value and Real Estate 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, Mid Cap Intrinsic Value and Real Estate of the actual breakdown of distributions paid to Equity Income, Mid Cap Intrinsic Value and Real Estate during its fiscal year, estimates previously recorded are adjusted on the books of Equity Income, Mid Cap Intrinsic Value and Real Estate to reflect actual results. As a result, the composition of Equity Income's, Mid Cap Intrinsic Value's and Real Estate's distributions as reported herein may differ from the final composition determined after calendar year-end and reported to Equity Income, Mid Cap Intrinsic Value and Real Estate shareholders on IRS Form 1099DIV. | |
8 | Expense allocation: Certain expenses are applicable to multiple funds. Expenses directly attributable to a Fund are charged to that Fund. Expenses of the Trust that are not directly attributable to a particular series of the Trust (e.g., a Fund) are allocated among the series of the Trust, on the basis of relative net assets, except where a more appropriate allocation of expenses to each of the series can otherwise be made fairly. Expenses borne by the complex of related investment companies, which includes open-end and closed-end investment companies for which Management serves as investment manager, that are not directly attributable to a particular investment company in the complex (e.g., the Trust) or series thereof are allocated among the investment companies in the complex or series thereof, on the basis of relative net assets, except where a more appropriate allocation of expenses to each of the investment companies in the complex or series thereof can otherwise be made fairly. Each Fund's expenses (other than those specific to each class) are allocated proportionally each day among the classes based upon the relative net assets of each class. |
9 | 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 charge a redemption fee. |
10 | Investments in foreign securities: Investing in foreign securities may involve certain sovereign and other risks, in addition to the credit and market risks normally associated with domestic securities. These additional risks include the possibility of adverse political and economic developments (including political instability, nationalization, expropriation, or confiscatory taxation) and the potentially adverse effects of unavailability of public information regarding issuers, less governmental supervision and regulation of financial markets, reduced liquidity of certain financial markets, and the lack of uniform accounting, auditing, and financial reporting standards or the application of standards that are different or less stringent than those applied in the United States. Foreign securities also may experience greater price volatility, higher rates of inflation, and delays in settlement. |
11 | Derivative instruments: During the year ended August 31, 2012, certain of the Funds' use of derivatives, as described below, was limited to written 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. |
194
Options: Premiums received by a Fund upon writing a covered call option or a put option are recorded in the liability section of the Fund's Statement of Assets and Liabilities and are subsequently adjusted to the current market value. When an option is exercised, closed, or expired, the Fund realizes a gain or loss and the liability is eliminated. | |
When writing a covered call option, a Fund, in return for the premium, gives up the opportunity for profit from a price increase in the underlying security above the exercise price, but conversely retains the risk of loss should the price of the security decline. When writing a put option, the Fund, in return for the premium, takes the risk that it must purchase the underlying security at a price that may be higher than the current market price of the security. If a covered call or a put option that the Fund has written expires unexercised, the Fund will realize a gain in the amount of the premium. All securities covering outstanding call options are held in escrow by the custodian bank. | |
Premiums paid by a Fund upon purchasing a call or put option are recorded in the asset section of the Fund's Statement of Assets and Liabilities and are subsequently adjusted to the current market value. When an option is exercised, closed, or expired, the Fund realizes a gain or loss and the asset is eliminated. | |
Written option transactions were used in an attempt to generate incremental returns for Equity Income for the year ended August 31, 2012. Written option transactions for Equity Income for the year ended August 31, 2012 were: |
Equity Income
Put Options | Call Options | ||||||||||||||||
Number | Value When Written | Number | Value When Written | ||||||||||||||
Contracts outstanding 8/31/2011 | 250 | $ | 63,000 | 1,700 | $ | 280,000 | |||||||||||
Contracts written | 17,000 | 2,734,000 | 19,100 | 2,308,000 | |||||||||||||
Contracts expired | (300 | ) | (30,000 | ) | (700 | ) | (83,000 | ) | |||||||||
Contracts exercised | (1,000 | ) | (209,000 | ) | (2,400 | ) | (359,000 | ) | |||||||||
Contracts closed | (12,200 | ) | (2,058,000 | ) | (8,900 | ) | (1,161,000 | ) | |||||||||
Contracts outstanding 8/31/2012 | 3,750 | $ | 500,000 | 8,800 | $ | 985,000 |
At August 31, 2012, 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 | $ | (1,797,000 | ) | Options contracts | |||
Total Value | $ | (1,797,000 | ) | written, at value |
The impact of the use of these derivative instruments on the Statements of Operations during the year ended August 31, 2012 was as follows: |
Realized Gain (Loss)
Equity Income | Equity Contracts Risk | Statements of Operations Location | |||||
Option Contracts Written | $ | 2,118,000 | Net realized gain | ||||
Total Realized Gain (Loss) | $ | 2,118,000 | (loss) on: options written |
195
Change in Appreciation (Depreciation)
Equity Income | Equity Contracts Risk | Statements of Operations Location | |||||
Option Contracts Written | $ | 242,000 | Change in net unrealized appreciation | ||||
Total Change in Appreciation (Depreciation) | $ | 242,000 | (depreciation) in value of: options written |
For the year ended August 31, 2012, Equity Income had an average market value of $1,052,000 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, did not hold any derivative instruments during the year ended August 31, 2012 that require additional disclosures pursuant to ASC 815. | |
12 | Indemnifications: Like many other companies, the Trust's organizational documents provide that its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, both in some of its principal service contracts and in the normal course of its business, the Trust enters into contracts that provide indemnifications to other parties for certain types of losses or liabilities. The Trust's maximum exposure under these arrangements is unknown as this could involve future claims against the Trust. |
13 | Expense offset arrangement: Each Fund has an expense offset arrangement in connection with its custodian contract. For the year ended August 31, 2012, the impact of this arrangement was a reduction of expenses of $46, $1,236, $507, $720, $0, $10, $37, $61, $82, $45, $2, $6, $695, $178, $1, $62, $13, $16, $19, $130 and $0 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, Mid Cap Intrinsic Value, Multi-Cap Opportunities, Real Estate, Select Equities, Small Cap Growth, Socially Responsive and Value, respectively. |
14 | 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 | % |
196
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 Equity Income, Focus, Guardian, International Large Cap, Large Cap Disciplined Growth, Large Cap Value, Mid Cap Growth, Mid Cap Intrinsic Value(1), Select Equities, Socially Responsive and Value: | |||||||||||||||||||||||||||||||||||||
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 | % |
(1) | Management has voluntarily agreed to waive its management fee in the amount of 0.25% of the average daily net assets of Mid Cap Intrinsic Value (0.15% prior to February 1, 2012). Management may, at its sole discretion, modify or terminate this voluntary waiver without notice to the Fund. For the year ended August 31, 2012, such waived fees amounted to $153,925 for Mid Cap Intrinsic Value. |
Accordingly, for the year ended August 31, 2012, the management fee pursuant to the Management Agreement was equivalent to an annual effective rate of each Fund's average daily net assets, as follows: |
Effective Rate | Effective Rate | ||||||||||||
Emerging Markets Equity | 1.00 | % | Large Cap Disciplined Growth | .53 | % | ||||||||
Equity Income | .47 | % | Large Cap Value | .48 | % | ||||||||
Focus | .53 | % | Mid Cap Growth | .53 | % | ||||||||
Genesis | .66 | % | Mid Cap Intrinsic Value | .34 | % | ||||||||
Global Equity | .75 | % | Multi-Cap Opportunities | .60 | % | ||||||||
Global Thematic Opportunities | .85 | % | Real Estate | .80 | % | ||||||||
Guardian | .51 | % | Select Equities | .55 | % | ||||||||
International | .85 | % | Small Cap Growth | .85 | % | ||||||||
International Institutional | .84 | % | Socially Responsive | .48 | % | ||||||||
International Large Cap | .55 | % | Value | .55 | % | ||||||||
Intrinsic Value | .85 | % |
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, Large Cap Value, Mid Cap Intrinsic Value, Real Estate, 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 |
197
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, Mid Cap Intrinsic Value 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, extraordinary expenses and dividend expense on short sales, 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's annual operating expenses to exceed its contractual expense limitation in place at the time the fees and expenses were forgone or reimbursed. The Institutional Class of each of Multi-Cap Opportunities and Value has agreed to repay the fees and expenses forgone or reimbursed for that Fund's Trust Class prior to December 21, 2009 and April 19, 2010, respectively, provided that the repayment does not cause the class's annual operating expenses to exceed its contractual expense limitation in place at the time the fees and expenses were forgone or reimbursed. Any such repayment must be made within three years after the year in which Management incurred the expense. During the year ended August 31, 2012, the Institutional Class of Equity Income, Class A of Equity Income, Class C of Equity Income, Class R3 of Equity Income, the Advisor Class of Guardian, the Institutional Class of Guardian, the Investor Class of Large Cap Disciplined Growth, Class A of Large Cap Value, the Advisor Class of Mid Cap Growth, the Institutional Class of Multi-Cap Opportunities, Class A of Multi-Cap Opportunities, Class A of Socially Responsive and Class R3 of Socially Responsive reimbursed Management $123,385, $484,371, $44,624, $268, $999, $7, $13,020, $3,361, $12,953, $135,434, $999, $2,639 and $1,453, respectively, under its contractual expense limitation agreement. At August 31, 2012, contingent liabilities to Management under the agreement were as follows: |
Expenses Reimbursed In Fiscal Period Ending, August 31, | |||||||||||||||||||
2010 | 2011 | 2012 | |||||||||||||||||
Subject to Repayment until August 31, | |||||||||||||||||||
Class | Contractual Expense Limitation(1) | Expiration | 2013 | 2014 | 2015 | ||||||||||||||
Emerging Markets Equity Fund Institutional Class | 1.25 | % | 8/31/15 | $ | 337,197 | $ | 800,846 | $ | 680,473 | ||||||||||
Emerging Markets Equity Fund Class A | 1.50 | % | 8/31/15 | 191,189 | 114,075 | 30,719 | |||||||||||||
Emerging Markets Equity Fund Class C | 2.25 | % | 8/31/15 | 11,530 | 13,198 | 8,678 | |||||||||||||
Emerging Markets Equity Fund Class R3 | 1.91 | % | 8/31/15 | 2,284 | (10) | 2,132 | 470 | ||||||||||||
Equity Income Fund Institutional Class | 0.80 | % | 8/31/15 | — | — | — | |||||||||||||
Equity Income Fund Class A | 1.16 | % | 8/31/15 | — | — | — | |||||||||||||
Equity Income Fund Class C | 1.91 | % | 8/31/15 | — | — | — |
198
Expenses Reimbursed In Fiscal Period Ending, August 31, | |||||||||||||||||||
2010 | 2011 | 2012 | |||||||||||||||||
Subject to Repayment until August 31, | |||||||||||||||||||
Class | Contractual Expense Limitation(1) | Expiration | 2013 | 2014 | 2015 | ||||||||||||||
Equity Income Fund Class R3 | 1.41 | % | 8/31/15 | $ | 1,772 | (10) | $ | 1,618 | $ | — | |||||||||
Focus Fund Trust Class | 1.50 | % | 8/31/15 | — | — | — | |||||||||||||
Focus Fund Advisor Class | 1.50 | % | 8/31/22 | — | — | — | |||||||||||||
Focus Fund Institutional Class | 0.75 | % | 8/31/15 | 2,035 | (10) | 2,813 | 2,815 | ||||||||||||
Focus Fund Class A | 1.11 | % | 8/31/15 | 2,035 | (10) | 1,836 | 570 | ||||||||||||
Focus Fund Class C | 1.86 | % | 8/31/15 | 2,036 | (10) | 1,723 | 322 | ||||||||||||
Genesis Fund Trust Class | 1.50 | % | 8/31/15 | — | — | — | |||||||||||||
Genesis Fund Advisor Class | 1.50 | % | 8/31/22 | — | — | — | |||||||||||||
Genesis Fund Institutional Class | 0.85 | % | 8/31/22 | 783,406 | 699,320 | 526,949 | |||||||||||||
Global Equity Fund Institutional Class | 1.15 | % | 8/31/15 | — | 140,976 | (13) | 268,266 | ||||||||||||
Global Equity Fund Class A | 1.51 | % | 8/31/15 | — | 11,381 | (13) | 7,900 | ||||||||||||
Global Equity Fund Class C | 2.26 | % | 8/31/15 | — | 9,265 | (13) | 4,712 | ||||||||||||
Global Thematic Opportunities Fund Institutional Class | 1.25 | % | 8/31/15 | — | 154,263 | (13) | 229,703 | ||||||||||||
Global Thematic Opportunities Fund Class A | 1.61 | % | 8/31/15 | — | 2,585 | (13) | 3,105 | ||||||||||||
Global Thematic Opportunities Fund Class C | 2.36 | % | 8/31/15 | — | 2,176 | (13) | 885 | ||||||||||||
Guardian Fund Trust Class | 1.50 | % | 8/31/15 | — | — | — | |||||||||||||
Guardian Fund Advisor Class | 1.50 | % | 8/31/22 | 6,275 | — | — | |||||||||||||
Guardian Fund Institutional Class | 0.75 | % | 8/31/15 | — | — | — | |||||||||||||
Guardian Fund Class A | 1.11 | % | 8/31/15 | 2,942 | 2,166 | 1,454 | |||||||||||||
Guardian Fund Class C | 1.86 | % | 8/31/15 | 1,149 | 296 | 279 | |||||||||||||
Guardian Fund Class R3 | 1.36 | % | 8/31/15 | 1,052 | 140 | 146 | |||||||||||||
International Fund Investor Class | 1.40 | % | 8/31/15 | 16,392 | 290,850 | 102,037 | |||||||||||||
International Fund Trust Class | 2.00 | % | 8/31/22 | — | — | — | |||||||||||||
International Fund Class A | 1.51 | % | 8/31/15 | — | 2,210 | (11) | 4,119 | ||||||||||||
International Fund Class C | 2.26 | % | 8/31/15 | — | 1,681 | (11) | 402 | ||||||||||||
International Institutional Fund Institutional Class | 0.85 | %(2) | 8/31/22 | 827,327 | 976,101 | 1,211,689 | |||||||||||||
International Large Cap Fund Trust Class | 1.25 | % | 8/31/15 | 84,392 | 36,362 | 23,177 | |||||||||||||
International Large Cap Fund Institutional Class | 0.90 | % | 8/31/15 | 181,331 | 174,363 | 151,893 | |||||||||||||
International Large Cap Fund Class A | 1.30 | %(2) | 8/31/15 | 15,818 | 7,000 | 6,199 | |||||||||||||
International Large Cap Fund Class C | 2.00 | % | 8/31/15 | 2,975 | 3,222 | 3,016 | |||||||||||||
International Large Cap Fund Class R3 | 1.51 | % | 8/31/15 | 1,177 | 283 | 438 | |||||||||||||
Intrinsic Value Fund Institutional Class | 1.00 | % | 8/31/15 | 331,673 | (9) | 292,802 | 271,075 | ||||||||||||
Intrinsic Value Fund Class A | 1.36 | % | 8/31/15 | 2,249 | (9) | 13,592 | 22,387 | ||||||||||||
Intrinsic Value Fund Class C | 2.11 | % | 8/31/15 | 225 | (9) | 5,011 | 16,110 | ||||||||||||
Large Cap Disciplined Growth Fund Investor Class | 1.11 | % | 8/31/15 | 14,102 | — | — | |||||||||||||
Large Cap Disciplined Growth Fund Institutional Class | 0.75 | % | 8/31/15 | 236,837 | 235,665 | 162,865 | |||||||||||||
Large Cap Disciplined Growth Fund Class A | 1.11 | % | 8/31/15 | 79,451 | 35,879 | 28,718 |
199
Expenses Reimbursed In Fiscal Period Ending, August 31, | |||||||||||||||||||
2010 | 2011 | 2012 | |||||||||||||||||
Subject to Repayment until August 31, | |||||||||||||||||||
Class | Contractual Expense Limitation(1) | Expiration | 2013 | 2014 | 2015 | ||||||||||||||
Large Cap Disciplined Growth Fund Class C | 1.86 | % | 8/31/15 | $ | 46,889 | $ | 21,490 | $ | 14,075 | ||||||||||
Large Cap Disciplined Growth Fund Class R3 | 1.36 | % | 8/31/15 | 1,123 | 258 | 260 | |||||||||||||
Large Cap Value Fund Trust Class | 1.50 | % | 8/31/15 | — | — | — | |||||||||||||
Large Cap Value Fund Advisor Class | 1.50 | % | 8/31/22 | — | — | — | |||||||||||||
Large Cap Value Fund Institutional Class | 0.70 | % | 8/31/15 | — | — | — | |||||||||||||
Large Cap Value Fund Class A | 1.11 | % | 8/31/15 | — | (10) | — | — | ||||||||||||
Large Cap Value Fund Class C | 1.86 | % | 8/31/15 | 2,027 | (10) | 1,629 | 168 | ||||||||||||
Large Cap Value Fund Class R3 | 1.36 | % | 8/31/15 | 2,029 | (10) | 1,607 | 67 | ||||||||||||
Mid Cap Growth Fund Trust Class | 1.50 | % | 8/31/15 | — | — | — | |||||||||||||
Mid Cap Growth Fund Advisor Class | 1.50 | % | 8/31/22 | — | — | — | |||||||||||||
Mid Cap Growth Fund Institutional Class | 0.75 | % | 8/31/15 | 127,686 | 94,033 | 57,778 | |||||||||||||
Mid Cap Growth Fund Class A | 1.11 | % | 8/31/15 | 6,744 | 16,201 | 32,163 | |||||||||||||
Mid Cap Growth Fund Class C | 1.86 | % | 8/31/15 | 1,365 | 821 | 1,973 | |||||||||||||
Mid Cap Growth Fund Class R3 | 1.36 | % | 8/31/15 | 1,110 | 397 | 1,733 | |||||||||||||
Mid Cap Intrinsic Value Fund Investor Class | 1.50 | % | 8/31/22 | — | — | — | |||||||||||||
Mid Cap Intrinsic Value Fund Trust Class | 1.25 | % | 8/31/22 | 80,831 | 71,988 | 29,878 | |||||||||||||
Mid Cap Intrinsic Value Fund Institutional Class | 0.85 | % | 8/31/15 | 576 | (6) | 4,750 | 5,012 | ||||||||||||
Mid Cap Intrinsic Value Fund Class A | 1.21 | % | 8/31/15 | 2,050 | (10) | 2,672 | 5,552 | ||||||||||||
Mid Cap Intrinsic Value Fund Class C | 1.96 | % | 8/31/15 | 2,052 | (10) | 1,870 | 524 | ||||||||||||
Mid Cap Intrinsic Value Fund Class R3 | 1.46 | % | 8/31/15 | 2,055 | (10) | 1,691 | 383 | ||||||||||||
Multi-Cap Opportunities Fund Institutional Class | 1.00 | %(3) | 8/31/15 | 218,745 | (5) | 126,524 | — | ||||||||||||
Multi-Cap Opportunities Fund Class A | 1.36 | % | 8/31/15 | 2,136 | (4) | 896 | — | ||||||||||||
Multi-Cap Opportunities Fund Class C | 2.11 | % | 8/31/15 | 1,973 | (4) | 524 | 93 | ||||||||||||
Real Estate Fund Trust Class | 1.50 | %(2) | 8/31/22 | 222,429 | 84,709 | — | |||||||||||||
Real Estate Fund Institutional Class | 0.85 | % | 8/31/22 | 79,150 | 209,367 | 401,382 | |||||||||||||
Real Estate Fund Class A | 1.21 | % | 8/31/15 | 2,145 | (10) | 65,175 | 160,543 | ||||||||||||
Real Estate Fund Class C | 1.96 | % | 8/31/15 | 2,098 | (10) | 14,827 | 40,775 | ||||||||||||
Real Estate Fund Class R3 | 1.46 | % | 8/31/15 | 2,066 | (10) | 2,177 | 6,246 | ||||||||||||
Select Equities Fund Institutional Class | 0.75 | % | 8/31/15 | 61,415 | 106,173 | 109,640 | |||||||||||||
Select Equities Fund Class A | 1.20 | % | 8/31/15 | 176,836 | 124,091 | 98,482 | |||||||||||||
Select Equities Fund Class C | 1.95 | % | 8/31/15 | 43,830 | 46,670 | 39,600 | |||||||||||||
Small Cap Growth Fund Investor Class | 1.30 | %(2) | 8/31/22 | 267,245 | 140,394 | 169,034 | |||||||||||||
Small Cap Growth Fund Trust Class | 1.40 | %(2) | 8/31/22 | 94,255 | 62,498 | 63,093 | |||||||||||||
Small Cap Growth Fund Advisor Class | 1.60 | %(2) | 8/31/22 | 32,264 | 21,179 | 17,513 | |||||||||||||
Small Cap Growth Fund Institutional Class | 0.90 | % | 8/31/15 | 161,405 | 401,065 | 203,174 | |||||||||||||
Small Cap Growth Fund Class A | 1.26 | % | 8/31/15 | 2,583 | 7,835 | 5,555 | |||||||||||||
Small Cap Growth Fund Class C | 2.01 | % | 8/31/15 | 1,571 | 1,142 | 2,744 |
200
Expenses Reimbursed In Fiscal Period Ending, August 31, | ||||||||||||||||||||||||||
2010 | 2011 | 2012 | ||||||||||||||||||||||||
Subject to Repayment until August 31, | ||||||||||||||||||||||||||
Class | Contractual Expense Limitation(1) | Expiration | 2013 | 2014 | 2015 | |||||||||||||||||||||
Small Cap Growth Fund Class R3 | 1.51 | % | 8/31/15 | $ | 1,618 | $ | 457 | $ | 1,022 | |||||||||||||||||
Socially Responsive Fund Trust Class | 1.50 | % | 8/31/15 | — | — | — | ||||||||||||||||||||
Socially Responsive Fund Institutional Class | 0.75 | % | 8/31/15 | — | — | — | ||||||||||||||||||||
Socially Responsive Fund Class A | 1.11 | % | 8/31/15 | 3,968 | 10,903 | — | ||||||||||||||||||||
Socially Responsive Fund Class C | 1.86 | % | 8/31/15 | 2,285 | 2,205 | 1,283 | ||||||||||||||||||||
Socially Responsive Fund Class R3 | 1.36 | % | 8/31/15 | — | — | — | ||||||||||||||||||||
Value Fund Institutional Class | 0.75 | %(2)(8) | 8/31/15 | 187,742 | (7) | 254,006 | 217,250 | |||||||||||||||||||
Value Fund Class A | 1.11 | %(2) | 8/31/15 | — | 13,297 | (12) | 81,085 | |||||||||||||||||||
Value Fund Class C | 1.86 | % | 8/31/15 | — | 3,825 | (12) | 3,750 |
(1) | Expense limitation per annum of the respective class's average daily net assets. |
(2) | In addition, Management has voluntarily undertaken to forgo current payment of fees and/or reimburse Class A of International Large Cap, the Trust Class of Real Estate, the Investor Class of Small Cap Growth, the Advisor Class of Small Cap Growth, the Institutional Class of Value and Class A of Value, so that their Operating Expenses are limited to 1.24%, 1.04% (0.99% prior to December 16, 2011), 1.25% (1.15% prior to February 1, 2012), 1.55% (as of February 1, 2012), 0.70% (as of July 12, 2012; 0.69% as of April 20, 2012) and 1.04% (as of July 12, 2012; 1.06% as of April 20, 2012), respectively, per annum of their average daily net assets. Management had also voluntarily undertaken to forgo current payment of fees and/or reimburse the Institutional Class of International Institutional and the Trust Class of Small Cap Growth, so that their Operating Expenses were limited to 0.80% prior to December 16, 2011 and 1.37% prior to February 1, 2012, respectively, per annum of their average daily net assets. For the year ended August 31, 2012, 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, the Trust Class of Small Cap Growth, the Advisor Class of Small Cap Growth, the Institutional Class of Value and Class A of Value amounted to $46,359, $3,982, $1,031,242, $56,124, $2,181, $1,810, $571 and $309, respectively. These amounts are not subject to recovery by Management. This undertaking, which is terminable by Management upon notice to International Institutional, International Large Cap, Real Estate, Small Cap Growth and Value, is in addition to the contractual undertaking as stated above. |
(3) | 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. |
(4) | Period from December 21, 2009 (Commencement of Operations) to August 31, 2010. |
(5) | 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. |
(6) | Period from March 8, 2010 (Commencement of Operations) to August 31, 2010. |
(7) | On April 19, 2010, 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. |
201
(8) | Prior to April 19, 2010, the contractual expense limitation was 1.00% for Trust Class. |
(9) | Period from May 10, 2010 (Commencement of Operations) to August 31, 2010. |
(10) | Period from June 21, 2010 (Commencement of Operations) to August 31, 2010. |
(11) | Period from December 20, 2010 (Commencement of Operations) to August 31, 2011. |
(12) | Period from March 2, 2011 (Commencement of Operations) to August 31, 2011. |
(13) | 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")). NBSH Acquisition, LLC ("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 55% of NBG's common units, and Lehman Brothers Holdings Inc. ("LBHI") and certain of its subsidiaries (collectively the "LBHI Parties") own the remaining 45% of such common units. Pursuant to agreements among NBG, NBSH and the LBHI Parties, NBG is entitled to acquire the remaining common units not owned by NBSH through a process that is expected to end in 2017. In April 2012, NBG began payments for equity purchases from the LBHI parties, which are expected to raise employee ownership by year end. 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 ("CDSC"), except that a CDSC of 1.00% will apply to certain redemptions made within 18 months following purchases of $1 million or more without an initial sales charge. Class C shares of each Fund are sold with no initial sales charge and a 1.00% CDSC if shares are sold within one year after purchase. On August 30, 2011, Management made a voluntary contribution to International as is shown in the Statements of Changes under the caption "Voluntary Contribution from Management". This payment was made by Management in connection with an administrative matter affecting the timing of a trade. |
202
For the year ended August 31, 2012, Management, acting as underwriter and broker-dealer, received net initial sales charges from the purchase of Class A shares and CDSCs from the redemptions of Class A and Class C shares as follows:
Underwriter | Broker-Dealer | ||||||||||||||||
Net Initial Sales Charge | CDSC | Net Initial Sales Charge | CDSC | ||||||||||||||
Emerging Markets Equity Fund Class A | $ | 7,991 | $ | — | $ | — | $ | — | |||||||||
Emerging Markets Equity Fund Class C | — | 1,343 | — | — | |||||||||||||
Equity Income Fund Class A | 283,502 | 28,347 | — | — | |||||||||||||
Equity Income Fund Class C | — | 104,615 | — | — | |||||||||||||
Focus Fund Class A | 22 | — | — | — | |||||||||||||
Focus Fund Class C | — | — | — | — | |||||||||||||
Global Equity Fund Class A | — | — | — | — | |||||||||||||
Global Equity Fund Class C | — | — | — | — | |||||||||||||
Global Thematic Opportunities Fund Class A | 1,477 | — | — | — | |||||||||||||
Global Thematic Opportunities Fund Class C | — | — | — | — | |||||||||||||
Guardian Fund Class A | 352 | — | — | — | |||||||||||||
Guardian Fund Class C | — | 84 | — | — | |||||||||||||
International Fund Class A | 152 | — | — | — | |||||||||||||
International Fund Class C | — | 80 | — | — | |||||||||||||
International Large Cap Fund Class A | 865 | — | — | — | |||||||||||||
International Large Cap Fund Class C | — | 3,801 | — | — | |||||||||||||
Intrinsic Value Fund Class A | 1,557 | — | — | — | |||||||||||||
Intrinsic Value Fund Class C | — | 2,182 | — | — | |||||||||||||
Large Cap Disciplined Growth Fund Class A | 10,129 | — | — | — | |||||||||||||
Large Cap Disciplined Growth Fund Class C | — | 10,220 | — | — | |||||||||||||
Large Cap Value Fund Class A | 683 | — | — | — | |||||||||||||
Large Cap Value Fund Class C | — | — | — | — | |||||||||||||
Mid Cap Growth Fund Class A | 6,866 | — | — | — | |||||||||||||
Mid Cap Growth Fund Class C | — | 783 | — | — | |||||||||||||
Mid Cap Intrinsic Value Fund Class A | 31 | — | — | — | |||||||||||||
Mid Cap Intrinsic Value Fund Class C | — | — | — | — | |||||||||||||
Multi-Cap Opportunities Fund Class A | 1,202 | — | — | — | |||||||||||||
Multi-Cap Opportunities Fund Class C | — | 163 | — | — | |||||||||||||
Real Estate Fund Class A | 23,578 | — | — | — | |||||||||||||
Real Estate Fund Class C | — | 5,263 | — | — | |||||||||||||
Select Equities Fund Class A | 5,115 | 259 | — | — | |||||||||||||
Select Equities Fund Class C | — | 3,595 | — | — | |||||||||||||
Small Cap Growth Fund Class A | — | — | — | — | |||||||||||||
Small Cap Growth Fund Class C | — | 155 | — | — | |||||||||||||
Socially Responsive Fund Class A | 21,565 | 11,776 | — | — | |||||||||||||
Socially Responsive Fund Class C | — | 2,715 | — | — | |||||||||||||
Value Fund Class A | 549 | — | — | — | |||||||||||||
Value Fund Class C | — | — | — | — |
203
Note C—Securities Transactions:
During the year ended August 31, 2012, 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 | $ | 166,339 | $ | 103,366 | Large Cap Disciplined Growth | $ | 759,608 | $ | 759,910 | ||||||||||||
Equity Income | 1,735,546 | 838,797 | Large Cap Value | 3,088,260 | 3,639,365 | ||||||||||||||||
Focus | 504,329 | 544,906 | Mid Cap Growth | 294,102 | 229,261 | ||||||||||||||||
Genesis | 1,587,703 | 1,580,253 | Mid Cap Intrinsic Value | 83,282 | 93,967 | ||||||||||||||||
Global Equity | 5,070 | 1,678 | Multi-Cap Opportunities | 402,736 | 58,196 | ||||||||||||||||
Global Thematic Opportunities | 44,913 | 20,525 | Real Estate | 295,742 | 133,711 | ||||||||||||||||
Guardian | 285,128 | 367,897 | Select Equities | 52,471 | 54,149 | ||||||||||||||||
International | 74,330 | 122,783 | Small Cap Growth | 397,869 | 488,849 | ||||||||||||||||
International Institutional | 264,900 | 123,198 | Socially Responsive | 551,293 | 481,516 | ||||||||||||||||
International Large Cap | 70,757 | 53,491 | Value | 7,722 | 6,571 | ||||||||||||||||
Intrinsic Value | 44,462 | 39,902 |
During the year ended August 31, 2012, no brokerage commissions on securities transactions were paid to affiliated brokers. |
Note D—Fund Share Transactions:
Share activity for the years ended August 31, 2012 and August 31, 2011 was as follows:
For the Year Ended August 31, 2012 | For the Year Ended August 31, 2011 | ||||||||||||||||||||||||||||||||
(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 | Shares Redeemed | Total | |||||||||||||||||||||||||
Emerging Markets Equity: | |||||||||||||||||||||||||||||||||
Institutional Class | 8,454 | 31 | (4,511 | ) | 3,974 | 7,246 | 31 | (1,036 | ) | 6,241 | |||||||||||||||||||||||
Class A | 170 | 1 | (204 | ) | (33 | ) | 395 | 10 | (447 | ) | (42 | ) | |||||||||||||||||||||
Class C | 76 | — | (54 | ) | 22 | 69 | — | (5 | ) | 64 | |||||||||||||||||||||||
Class R3 | 68 | — | (52 | ) | 16 | — | — | — | — | ||||||||||||||||||||||||
Equity Income: | |||||||||||||||||||||||||||||||||
Institutional Class | 62,110 | 2,464 | (23,461 | ) | 41,113 | 58,460 | 734 | (7,030 | ) | 52,164 | |||||||||||||||||||||||
Class A | 53,460 | 2,339 | (19,737 | ) | 36,062 | 46,755 | 1,040 | (15,009 | ) | 32,786 | |||||||||||||||||||||||
Class C | 14,909 | 476 | (3,559 | ) | 11,826 | 17,321 | 143 | (1,025 | ) | 16,439 | |||||||||||||||||||||||
Class R3 | 79 | 1 | (7 | ) | 73 | 14 | — | — | 14 |
204
For the Year Ended August 31, 2012 | For the Year Ended August 31, 2011 | ||||||||||||||||||||||||||||||||
(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 | Shares Redeemed | Total | |||||||||||||||||||||||||
Focus: | |||||||||||||||||||||||||||||||||
Investor Class | 176 | 123 | (2,489 | ) | (2,190 | ) | 226 | 134 | (3,362 | ) | (3,002 | ) | |||||||||||||||||||||
Trust Class | 75 | 6 | (438 | ) | (357 | ) | 132 | 7 | (444 | ) | (305 | ) | |||||||||||||||||||||
Advisor Class | 75 | 7 | (370 | ) | (288 | ) | 107 | 5 | (246 | ) | (134 | ) | |||||||||||||||||||||
Institutional Class | 149 | 2 | (92 | ) | 59 | 274 | — | (16 | ) | 258 | |||||||||||||||||||||||
Class A | 29 | — | (9 | ) | 20 | 33 | — | (7 | ) | 26 | |||||||||||||||||||||||
Class C | 3 | — | (2 | ) | 1 | 26 | — | — | 26 | ||||||||||||||||||||||||
Genesis: | |||||||||||||||||||||||||||||||||
Investor Class | 11,887 | 3,200 | (12,920 | ) | 2,167 | 12,368 | — | (16,504 | ) | (4,136 | ) | ||||||||||||||||||||||
Trust Class | 10,453 | 2,215 | (22,438 | ) | (9,770 | ) | 12,656 | — | (23,330 | ) | (10,674 | ) | |||||||||||||||||||||
Advisor Class | 6,616 | 1,152 | (8,519 | ) | (751 | ) | 7,853 | — | (6,710 | ) | 1,143 | ||||||||||||||||||||||
Institutional Class | 30,674 | 3,928 | (22,205 | ) | 12,397 | 30,647 | — | (23,578 | ) | 7,069 | |||||||||||||||||||||||
Global Equity: | |||||||||||||||||||||||||||||||||
Institutional Class | 412 | 9 | (1 | ) | 420 | 90 | — | — | 90 | (3) | |||||||||||||||||||||||
Class A | 3 | 1 | — | 4 | 7 | — | — | 7 | (3) | ||||||||||||||||||||||||
Class C | — | — | — | — | 5 | — | — | 5 | (3) | ||||||||||||||||||||||||
Global Thematic Opportunities: | |||||||||||||||||||||||||||||||||
Institutional Class | 3,662 | 8 | (878 | ) | 2,792 | 3,000 | — | (97 | ) | 2,903 | (3) | ||||||||||||||||||||||
Class A | 73 | — | (17 | ) | 56 | 17 | — | — | 17 | (3) | |||||||||||||||||||||||
Class C | 10 | — | (1 | ) | 9 | 8 | — | — | 8 | (3) | |||||||||||||||||||||||
Guardian: | |||||||||||||||||||||||||||||||||
Investor Class | 1,181 | 445 | (8,595 | ) | �� | (6,969 | ) | 2,170 | 220 | (8,495 | ) | (6,105 | ) | ||||||||||||||||||||
Trust Class | 2,267 | 82 | (2,195 | ) | 154 | 2,774 | 26 | (2,157 | ) | 643 | |||||||||||||||||||||||
Advisor Class | 9 | — | (18 | ) | (9 | ) | 9 | — | (8 | ) | 1 | ||||||||||||||||||||||
Institutional Class | 2,376 | 29 | (922 | ) | 1,483 | 2,374 | 2 | (425 | ) | 1,951 | |||||||||||||||||||||||
Class A | 888 | 10 | (416 | ) | 482 | 882 | 2 | (304 | ) | 580 | |||||||||||||||||||||||
Class C | 21 | — | (14 | ) | 7 | 60 | — | (8 | ) | 52 | |||||||||||||||||||||||
Class R3 | 37 | — | (32 | ) | 5 | 36 | — | (8 | ) | 28 | |||||||||||||||||||||||
International: | |||||||||||||||||||||||||||||||||
Investor Class | 296 | 83 | (1,945 | ) | (1,566 | ) | 630 | 116 | (2,631 | ) | (1,885 | ) | |||||||||||||||||||||
Trust Class | 749 | 40 | (2,283 | ) | (1,494 | ) | 943 | 78 | (3,889 | ) | (2,868 | ) | |||||||||||||||||||||
Class A | 225 | 1 | (30 | ) | 196 | 41 | — | (1 | ) | 40 | (1) | ||||||||||||||||||||||
Class C | 10 | — | (1 | ) | 9 | 3 | — | — | 3 | (1) | |||||||||||||||||||||||
International Institutional: | |||||||||||||||||||||||||||||||||
Institutional Class | 21,788 | 524 | (5,811 | ) | 16,501 | 18,262 | 372 | (2,147 | ) | 16,487 |
205
For the Year Ended August 31, 2012 | For the Year Ended August 31, 2011 | ||||||||||||||||||||||||||||||||
(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 | Shares Redeemed | Total | |||||||||||||||||||||||||
International Large Cap: | |||||||||||||||||||||||||||||||||
Trust Class | 340 | 19 | (792 | ) | (433 | ) | 599 | 15 | (1,957 | ) | (1,343 | ) | |||||||||||||||||||||
Institutional Class | 4,295 | 312 | (3,050 | ) | 1,557 | 5,068 | 113 | (3,494 | ) | 1,687 | |||||||||||||||||||||||
Class A | 567 | 8 | (230 | ) | 345 | 375 | 6 | (940 | ) | (559 | ) | ||||||||||||||||||||||
Class C | 276 | — | (92 | ) | 184 | 109 | — | (67 | ) | 42 | |||||||||||||||||||||||
Class R3 | 49 | — | (9 | ) | 40 | 3 | — | (2 | ) | 1 | |||||||||||||||||||||||
Intrinsic Value: | |||||||||||||||||||||||||||||||||
Institutional Class | 3,370 | 1,248 | (2,708 | ) | 1,910 | 3,398 | 317 | (1,135 | ) | 2,580 | |||||||||||||||||||||||
Class A | 449 | 81 | (544 | ) | (14 | ) | 974 | 6 | (209 | ) | 771 | ||||||||||||||||||||||
Class C | 327 | 26 | (210 | ) | 143 | 635 | — | (93 | ) | 542 | |||||||||||||||||||||||
Large Cap Disciplined Growth: | |||||||||||||||||||||||||||||||||
Investor Class | 572 | 102 | (456 | ) | 218 | 776 | — | (511 | ) | 265 | |||||||||||||||||||||||
Institutional Class | 38,108 | 2,918 | (39,358 | ) | 1,668 | 36,192 | 101 | (15,937 | ) | 20,356 | |||||||||||||||||||||||
Class A | 7,080 | 302 | (4,084 | ) | 3,298 | 4,132 | 2 | (4,029 | ) | 105 | |||||||||||||||||||||||
Class C | 910 | 62 | (1,610 | ) | (638 | ) | 1,446 | — | (1,405 | ) | 41 | ||||||||||||||||||||||
Class R3 | 24 | — | (23 | ) | 1 | 50 | — | (17 | ) | 33 | |||||||||||||||||||||||
Large Cap Value: | |||||||||||||||||||||||||||||||||
Investor Class | 974 | 204 | (8,133 | ) | (6,955 | ) | 2,739 | 58 | (9,871 | ) | (7,074 | ) | |||||||||||||||||||||
Trust Class | 909 | 39 | (12,816 | ) | (11,868 | ) | 1,844 | 2 | (12,048 | ) | (10,202 | ) | |||||||||||||||||||||
Advisor Class | 1,332 | 48 | (7,498 | ) | (6,118 | ) | 2,376 | — | (7,065 | ) | (4,689 | ) | |||||||||||||||||||||
Institutional Class | 1,710 | 53 | (5,881 | ) | (4,118 | ) | 3,437 | 18 | (2,179 | ) | 1,276 | ||||||||||||||||||||||
Class A | 2,224 | 19 | (2,216 | ) | 27 | 138 | — | (65 | ) | 73 | |||||||||||||||||||||||
Class C | 6 | — | (0 | )z | 6 | 2 | — | — | 2 | ||||||||||||||||||||||||
Class R3 | 34 | — | — | 34 | — | — | — | — | |||||||||||||||||||||||||
Mid Cap Growth: | |||||||||||||||||||||||||||||||||
Investor Class | 822 | 55 | (2,778 | ) | (1,901 | ) | 1,005 | — | (4,213 | ) | (3,208 | ) | |||||||||||||||||||||
Trust Class | 1,416 | 1 | (931 | ) | 486 | 521 | — | (513 | ) | 8 | |||||||||||||||||||||||
Advisor Class | 185 | — | (170 | ) | 15 | 244 | — | (122 | ) | 122 | |||||||||||||||||||||||
Institutional Class | 6,973 | 54 | (3,042 | ) | 3,985 | 5,784 | — | (9,627 | ) | (3,843 | ) | ||||||||||||||||||||||
Class A | 2,995 | 1 | (1,057 | ) | 1,939 | 1,018 | — | (554 | ) | 464 | |||||||||||||||||||||||
Class C | 107 | — | (13 | ) | 94 | 24 | — | (3 | ) | 21 | |||||||||||||||||||||||
Class R3 | 174 | — | (44 | ) | 130 | 45 | — | (21 | ) | 24 |
206
For the Year Ended August 31, 2012 | For the Year Ended August 31, 2011 | ||||||||||||||||||||||||||||||||
(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 | Shares Redeemed | Total | |||||||||||||||||||||||||
Mid Cap Intrinsic Value: | |||||||||||||||||||||||||||||||||
Investor Class | 374 | 13 | (776 | ) | (389 | ) | 460 | 4 | (1,741 | ) | (1,277 | ) | |||||||||||||||||||||
Trust Class | 138 | 7 | (774 | ) | (629 | ) | 394 | 3 | (5,979 | ) | (5,582 | ) | |||||||||||||||||||||
Institutional Class | 112 | 2 | (85 | ) | 29 | 221 | — | (33 | ) | 188 | |||||||||||||||||||||||
Class A | 238 | 1 | (66 | ) | 173 | 106 | — | (10 | ) | 96 | |||||||||||||||||||||||
Class C | 21 | — | — | 21 | 7 | — | — | 7 | |||||||||||||||||||||||||
Class R3 | 1 | — | — | 1 | 10 | — | — | 10 | |||||||||||||||||||||||||
Multi-Cap Opportunities: | |||||||||||||||||||||||||||||||||
Institutional Class | 37,435 | 43 | (3,697 | ) | 33,781 | 7,157 | 1 | (3,536 | ) | 3,622 | |||||||||||||||||||||||
Class A | 292 | 1 | (51 | ) | 242 | 62 | — | (78 | ) | (16 | ) | ||||||||||||||||||||||
Class C | 18 | 1 | (9 | ) | 10 | 16 | — | — | 16 | ||||||||||||||||||||||||
Real Estate: | |||||||||||||||||||||||||||||||||
Trust Class | 8,679 | 370 | (6,479 | ) | 2,570 | 11,860 | 287 | (6,207 | ) | 5,940 | |||||||||||||||||||||||
Institutional Class | 9,744 | 182 | (3,334 | ) | 6,592 | 9,119 | 55 | (1,478 | ) | 7,696 | |||||||||||||||||||||||
Class A | 3,615 | 65 | (1,088 | ) | 2,592 | 3,727 | 17 | (721 | ) | 3,023 | |||||||||||||||||||||||
Class C | 909 | 8 | (119 | ) | 798 | 753 | 2 | (65 | ) | 690 | |||||||||||||||||||||||
Class R3 | 388 | 1 | (70 | ) | 319 | 30 | — | (3 | ) | 27 | |||||||||||||||||||||||
Select Equities: | |||||||||||||||||||||||||||||||||
Institutional Class | 733 | 211 | (1,062 | ) | (118 | ) | 1,637 | 73 | (911 | ) | 799 | ||||||||||||||||||||||
Class A | 594 | 260 | (1,142 | ) | (288 | ) | 1,229 | 102 | (2,722 | ) | (1,391 | ) | |||||||||||||||||||||
Class C | 195 | 88 | (476 | ) | (193 | ) | 296 | 27 | (331 | ) | (8 | ) | |||||||||||||||||||||
Small Cap Growth: | |||||||||||||||||||||||||||||||||
Investor Class | 200 | — | (701 | ) | (501 | ) | 313 | — | (2,240 | ) | (1,927 | ) | |||||||||||||||||||||
Trust Class | 91 | — | (342 | ) | (251 | ) | 213 | — | (691 | ) | (478 | ) | |||||||||||||||||||||
Advisor Class | 100 | — | (298 | ) | (198 | ) | 259 | — | (621 | ) | (362 | ) | |||||||||||||||||||||
Institutional Class | 311 | — | (4,380 | ) | (4,069 | ) | 1,449 | — | (1,698 | ) | (249 | ) | |||||||||||||||||||||
Class A | 56 | — | (67 | ) | (11 | ) | 109 | — | (80 | ) | 29 | ||||||||||||||||||||||
Class C | 38 | — | (16 | ) | 22 | 14 | — | (1 | ) | 13 | |||||||||||||||||||||||
Class R3 | 11 | — | (1 | ) | 10 | 1 | — | — | 1 | ||||||||||||||||||||||||
Socially Responsive: | |||||||||||||||||||||||||||||||||
Investor Class | 7,239 | 121 | (6,332 | ) | 1,028 | 5,393 | 34 | (7,404 | ) | (1,977 | ) | ||||||||||||||||||||||
Trust Class | 6,459 | 182 | (8,372 | ) | (1,731 | ) | 9,308 | 40 | (5,809 | ) | 3,539 | ||||||||||||||||||||||
Institutional Class | 6,657 | 111 | (4,387 | ) | 2,381 | 10,824 | 28 | (2,002 | ) | 8,850 | |||||||||||||||||||||||
Class A | 1,943 | 32 | (1,876 | ) | 99 | 4,062 | 5 | (421 | ) | 3,646 | |||||||||||||||||||||||
Class C | 283 | 1 | (118 | ) | 166 | 582 | — | (39 | ) | 543 | |||||||||||||||||||||||
Class R3 | 609 | 6 | (191 | ) | 424 | 624 | — | (58 | ) | 566 |
207
For the Year Ended August 31, 2012 | For the Year Ended August 31, 2011 | ||||||||||||||||||||||||||||||||
(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 | Shares Redeemed | Total | |||||||||||||||||||||||||
Value: | |||||||||||||||||||||||||||||||||
Institutional Class | 232 | 2 | (259 | ) | (25 | ) | 186 | 1 | (67 | ) | 120 | ||||||||||||||||||||||
Class A | 121 | — | (16 | ) | 105 | 35 | — | — | 35 | (2) | |||||||||||||||||||||||
Class C | 2 | — | — | 2 | 3 | — | — | 3 | (2) |
(1) | Period from December 20, 2010 (Commencement of Operations) to August 31, 2011. |
(2) | Period from March 2, 2011 (Commencement of Operations) to August 31, 2011. |
(3) | Period from June 30, 2011 (Commencement of Operations) to August 31, 2011. |
z | A zero balance may reflect actual amounts rounding to less than $1,000. |
Note E—Lines of Credit:
At August 31, 2012, each Fund was a participant in a single committed, unsecured $200,000,000 line of credit with State Street, to be used only for temporary or emergency purposes. Other investment companies managed by Management also participate in this line of credit on the same terms. Interest is charged on borrowings under this line of credit at the higher of (a) the Federal Funds Rate plus 1.25% per annum or (b) the Overnight LIBOR Rate plus 1.25% per annum. A commitment fee of 0.10% (0.125% prior to September 16, 2011) 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 at any particular time. There were no loans outstanding pursuant to this line of credit at August 31, 2012. During the year ended August 31, 2012, no funds utilized this line of credit. At August 31, 2012, 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, 2012. During the year ended August 31, 2012, International, International Institutional, and International Large Cap did not utilize this line of credit. |
208
Note F—Investments In Affiliates(1):
Balance of Shares Held August 31, 2011 | Gross Purchases and Additions | Gross Sales and Reductions | Balance of Shares Held August 31, 2012 | Value August 31, 2012 | Income from Investments in Affiliated Issuers | Net Realized Gain (Loss) from Investments in Affiliated Issuers | |||||||||||||||||||||||
Genesis | |||||||||||||||||||||||||||||
Abaxis, Inc. | 1,158,100 | 50,000 | — | 1,208,100 | $ | 45,267,507 | $ | — | * | $ | — | ||||||||||||||||||
AG Growth International, Inc. | 1,367,500 | — | 560,700 | 806,800 | 26,321,850 | 2,973,647 | (4,426,655 | ) | |||||||||||||||||||||
AmSurg Corp. | 1,703,534 | — | — | 1,703,534 | 50,100,935 | — | * | — | |||||||||||||||||||||
Applied Industrial Technologies, Inc. | 1,036,200 | 1,317,144 | — | 2,353,344 | 95,734,034 | 1,584,753 | — | ||||||||||||||||||||||
AptarGroup, Inc. | 6,055,900 | — | 446,700 | 5,609,200 | 284,105,980 | 5,272,564 | 13,104,973 | ||||||||||||||||||||||
Balchem Corp. | 1,308,035 | 288,300 | — | 1,596,335 | 58,234,301 | 239,946 | — | ||||||||||||||||||||||
Blackbaud, Inc.(3) | 3,764,403 | — | 1,850,865 | 1,913,538 | 46,652,056 | 1,588,074 | 4,264,760 | ||||||||||||||||||||||
Boston Beer Co., Inc. | 967,419 | — | — | 967,419 | 99,673,180 | — | * | — | |||||||||||||||||||||
Brookline Bancorp, Inc. | 4,067,590 | — | — | 4,067,590 | 34,533,839 | 1,382,981 | — | ||||||||||||||||||||||
CARBO Ceramics, Inc. | 1,702,600 | — | 122,500 | 1,580,100 | 111,207,438 | 1,674,720 | 3,283,006 | ||||||||||||||||||||||
Church & Dwight Co., Inc.(3) | 7,201,938 | — | 990,228 | 6,211,710 | 340,029,005 | 6,023,860 | 41,802,902 | ||||||||||||||||||||||
CLARCOR, Inc. | 4,755,022 | 74,400 | 20,000 | 4,809,422 | 231,525,575 | 2,300,123 | 399,977 | ||||||||||||||||||||||
Compass Minerals International, Inc. | 3,562,100 | — | 49,700 | 3,512,400 | 252,260,568 | 6,872,864 | 1,057,748 | ||||||||||||||||||||||
Computer Modelling Group Ltd. | 1,885,500 | 1,224,000 | — | 3,109,500 | 57,095,563 | 1,653,673 | — | ||||||||||||||||||||||
Exponent, Inc. | 1,166,935 | — | — | 1,166,935 | 60,750,636 | — | * | — | |||||||||||||||||||||
Forrester Research, Inc. | 1,375,053 | 464,200 | 660,365 | 1,178,888 | 34,517,841 | 622,910 | (84,058 | ) | |||||||||||||||||||||
Forward Air Corp. | 1,746,600 | — | — | 1,746,600 | 58,720,692 | 541,446 | — | ||||||||||||||||||||||
GT Advanced Technologies, Inc.(3) | 7,049,100 | 460,600 | 7,509,700 | — | — | — | * | (29,070,963 | ) | ||||||||||||||||||||
Haemonetics Corp. | 2,523,900 | 73,400 | 27,300 | 2,570,000 | 189,331,900 | — | * | 419,981 | |||||||||||||||||||||
Harleysville Group, Inc.(3) | 1,990,130 | — | 1,990,130 | — | — | 756,249 | 51,472,720 | ||||||||||||||||||||||
Harris Teeter Supermarkets, Inc.(2) | 4,774,967 | — | — | 4,774,967 | 186,557,961 | 2,578,482 | — | ||||||||||||||||||||||
Healthcare Services Group, Inc. | 5,518,381 | — | 25,000 | 5,493,381 | 116,294,876 | 3,573,152 | 153,001 | ||||||||||||||||||||||
Hibbett Sports, Inc. | 1,840,963 | 4,706 | — | 1,845,669 | 107,122,629 | — | * | — | |||||||||||||||||||||
Hittite Microwave Corp. | 849,123 | 1,074,197 | ��� | 1,923,320 | 100,724,268 | — | * | — | |||||||||||||||||||||
ICON PLC | 3,578,000 | 172,000 | — | 3,750,000 | 85,950,000 | — | * | — | |||||||||||||||||||||
Industrea Ltd.(3) | 27,882,542 | 5,756,977 | 33,639,519 | — | — | 1,279,980 | (3,011,853 | ) | |||||||||||||||||||||
Innophos Holdings, Inc. | — | 1,811,400 | — | 1,811,400 | 85,661,106 | 946,959 | — |
209
Balance of Shares Held August 31, 2011 | Gross Purchases and Additions | Gross Sales and Reductions | Balance of Shares Held August 31, 2012 | Value August 31, 2012 | Income from Investments in Affiliated Issuers | Net Realized Gain (Loss) from Investments in Affiliated Issuers | |||||||||||||||||||||||
J & J Snack Foods Corp. | 1,169,046 | — | — | 1,169,046 | $ | 66,752,527 | $ | 593,291 | $ | — | |||||||||||||||||||
Landauer, Inc. | 501,750 | — | — | 501,750 | 29,422,620 | 1,103,850 | — | ||||||||||||||||||||||
Layne Christensen Co.(3) | 1,006,207 | — | 1,006,207 | — | — | — | * | (11,449,539 | ) | ||||||||||||||||||||
Lindsay Corp. | 1,181,550 | — | 104,209 | 1,077,341 | 70,415,008 | 449,929 | (3,829,598 | ) | |||||||||||||||||||||
LSB Industries, Inc. | 799,300 | 573,400 | — | 1,372,700 | 51,750,790 | — | * | — | |||||||||||||||||||||
Lufkin Industries, Inc.(3) | 1,621,220 | 76,800 | 358,459 | 1,339,561 | 70,219,788 | 806,703 | 2,287,887 | ||||||||||||||||||||||
Major Drilling Group International(3) | 5,630,600 | — | 2,736,100 | 2,894,500 | 27,471,700 | 939,956 | 4,613,046 | ||||||||||||||||||||||
ManTech International Corp.(3) | 2,006,700 | — | 2,006,700 | — | — | 1,342,769 | 17,371,850 | ||||||||||||||||||||||
Matthews International Corp.(3) | 1,679,138 | — | 1,569,112 | 110,026 | 3,293,078 | 371,546 | 19,998,769 | ||||||||||||||||||||||
Meridian Bioscience, Inc. | 2,191,397 | 1,191,400 | — | 3,382,797 | 59,807,851 | 2,225,010 | — | ||||||||||||||||||||||
MICROS Systems, Inc. | 4,308,942 | — | 118,700 | 4,190,242 | 212,277,660 | — | * | 2,741,077 | |||||||||||||||||||||
MWI Veterinary Supply, Inc. | 1,091,429 | 93,400 | 13,300 | 1,171,529 | 118,113,554 | — | * | 791,041 | |||||||||||||||||||||
Natural Gas Services Group, Inc. | 829,800 | — | — | 829,800 | 11,442,942 | — | * | — | |||||||||||||||||||||
NETGEAR, Inc. | — | 2,046,800 | — | 2,046,800 | 74,851,476 | — | * | — | |||||||||||||||||||||
Pason Systems, Inc. | 2,717,915 | 1,464,742 | — | 4,182,657 | 63,137,647 | 1,539,177 | — | ||||||||||||||||||||||
Pool Corp. | 213,700 | 2,476,523 | — | 2,690,223 | 105,967,884 | 1,186,653 | — | ||||||||||||||||||||||
PSS World Medical, Inc. | 3,010,199 | 254,400 | 350,200 | 2,914,399 | 62,921,874 | — | * | (2,725,283 | ) | ||||||||||||||||||||
Raven Industries, Inc. | 1,792,176 | 1,792,176 | — | 3,584,352 | 108,856,770 | 1,397,897 | — | ||||||||||||||||||||||
RLI Corp. | 1,359,046 | 204,761 | — | 1,563,807 | 99,082,812 | 9,543,676 | — | ||||||||||||||||||||||
Safety Insurance Group, Inc. | 1,024,434 | 91,315 | — | 1,115,749 | 50,532,272 | 2,343,073 | — | ||||||||||||||||||||||
Sensient Technologies Corp. | 2,582,614 | 1,360,303 | — | 3,942,917 | 141,353,574 | 3,084,158 | — | ||||||||||||||||||||||
Solera Holdings, Inc. | 4,498,053 | — | 95,949 | 4,402,104 | 181,058,538 | 1,799,221 | 1,159,632 | ||||||||||||||||||||||
South Jersey Industries, Inc. | 1,426,844 | 132,000 | — | 1,558,844 | 78,908,683 | 2,243,712 | — | ||||||||||||||||||||||
State Street Institutional Treasury Plus Fund Institutional Class | 323,232,740 | 1,142,728,605 | 1,283,500,372 | 182,460,973 | 182,460,973 | 7,801 | — | ||||||||||||||||||||||
United Stationers, Inc. | 3,905,841 | 410,300 | 36,600 | 4,279,541 | 103,522,097 | 2,171,723 | (442,536 | ) | |||||||||||||||||||||
Wabtec Corp. | 2,699,900 | — | — | 2,699,900 | 210,970,186 | 377,986 | — |
210
Balance of Shares Held August 31, 2011 | Gross Purchases and Additions | Gross Sales and Reductions | Balance of Shares Held August 31, 2012 | Value August 31, 2012 | Income from Investments in Affiliated Issuers | Net Realized Gain (Loss) from Investments in Affiliated Issuers | |||||||||||||||||||||||
West Pharmaceutical Services, Inc. | 1,651,629 | 78,600 | — | 1,730,229 | $ | 81,926,343 | $ | 1,211,241 | $ | — | |||||||||||||||||||
Westamerica Bancorporation | 1,995,243 | — | — | 1,995,243 | 92,878,562 | 2,952,960 | — | ||||||||||||||||||||||
Zebra Technologies Corp. | 2,633,670 | 127,300 | — | 2,760,970 | 102,956,571 | — | * | — | |||||||||||||||||||||
Total | $ | 5,220,727,520 | $ | 79,558,715 | $ | 109,881,885 |
(1) | Affiliated issuers, as defined in the 1940 Act, as amended. |
(2) | Effective March 28, 2012 this security underwent a name change from Ruddick Corp. to Harris Teeter Supermarkets, Inc. |
(3) | At August 31, 2012, the issuers of these securities were no longer affiliated with Genesis. |
* | Security did not produce income during the last twelve months. |
Note G—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 named a committee of independent, non-involved Trustees to review the plaintiff's demand and to make a recommendation to the Board regarding how to appropriately respond. The committee retained counsel to assist it. On August 24, 2011, plaintiff Gamoran filed another complaint, this time in Delaware federal court ("Gamoran III"). The case was later transferred to the Southern District of New York. The substantive underlying claims alleged in the Gamoran III complaint are similar to those that appeared in the July 2010 case discussed above and an earlier voluntarily dismissed action. The Gamoran III complaint also alleges some purported class claims. It seeks relief including compensatory damages for the Trust representing the loss in value of the Trust's investments resulting from the allegedly illegal conduct, compensatory damages for individual shareholders for the investment losses, forfeiture and disgorgement of fees and commissions, treble and punitive damages, attorney's fees, and other items. While earlier complaints contended that demand was futile, the Gamoran III complaint alleges that plaintiff Gamoran has made demand but that filing the latest lawsuit was necessary to prevent the claims from being barred by the statute of limitations. The Gamoran III complaint names the Trust as a nominal defendant and although it apparently does not seek a judgment against International, there may be circumstances in which International could be called upon to indemnify certain defendants. A full statement of plaintiff's claims and the relief sought are set forth in the Gamoran III complaint. Defendants subsequently moved to dismiss the Gamoran III complaint. In his brief opposing defendants' motion to dismiss, plaintiff indicated that he does not intend to pursue his putative class claims. |
211
The committee named by the Trust's Board to evaluate the claims in plaintiff's May 2011 demand letter recommended that the Board decline to pursue those claims, and the board adopted that recommendation. On March 16, 2012, counsel to the committee transmitted a letter to Mr. Gamoran's counsel notifying Mr. Gamoran of the Board's decision. On June 12, 2012, the Court entered an order dismissing the Gamoran III complaint. Among other things, the Court rejected Gamoran's arguments that his claims under 18 U.S.C. §1955(a) and 1962(c)-(d) were exempt from the demand requirement and that the Board took too long to respond to Gamoran's demand. The Court further held that, in light of the Board's refusal of Gamoran's demand, the Gamoran III complaint addressed outdated circumstances in that it was predicated on the assumption that the Board had not responded to Gamoran's demand. The Court permitted Gamoran to file an amended complaint alleging that the Board's refusal of his demand was not protected by the business judgment rule. On July 16, 2012, Gamoran filed an amended derivative complaint repeating many of his earlier allegations and including allegations that the Board had wrongfully refused his demand. On August 24, 2012, defendants moved to dismiss. For the period ended August 31, 2012, the litigation, demand investigation and related fees recorded in the Statements of Operations were $1,146,378. The Trust, on behalf of International, has filed a claim under its insurance policy for reimbursement of certain litigation expenses. As of August 31, 2012, 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. |
Note H—Recent Accounting Pronouncement:
In December 2011, the Financial Accounting Standards Board issued Accounting Standards Update 2011-11 Disclosures about Offsetting Assets and Liabilities ("ASU 2011-11"). Effective for annual reporting periods beginning on or after January 1, 2013 and interim periods within those annual periods, ASU 2011-11 is intended to enhance disclosure requirements on the offsetting of financial assets and liabilities. At this time, Management is evaluating the implications of ASU 2011-11 and its impact on the financial statements. |
212
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 15.80 | $ | 0.13 | $ | (0.86 | ) | $ | (0.73 | ) | $ | (0.08 | ) | $ | — | $ | — | $ | (0.08 | ) | $ | — | |||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 15.74 | $ | 0.08 | $ | (0.85 | ) | $ | (0.77 | ) | $ | (0.05 | ) | $ | — | $ | — | $ | (0.05 | ) | $ | — | |||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 15.46 | $ | (0.02 | ) | $ | (0.83 | ) | $ | (0.85 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 15.52 | $ | 0.04 | $ | (0.85 | ) | $ | (0.81 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 11.28 | $ | 0.35 | $ | 0.57 | $ | 0.92 | $ | (0.38 | ) | $ | (0.08 | ) | $ | — | $ | (0.46 | ) | $ | — | ||||||||||||||||
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 | ) | $ | — |
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 | ||||||||||||||||||||||||||
Emerging Markets Equity Fund | |||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 14.99 | (4.53 | %) | $ | 161.7 | 1.77 | % | 1.25 | %‡ | .89 | % | 78 | % | |||||||||||||||||
8/31/2011 | $ | 0.00 | $ | 15.80 | 3.44 | % | $ | 107.7 | 2.56 | % | 1.26 | %‡ | 1.05 | % | 71 | % | |||||||||||||||||
8/31/2010 | $ | 0.00 | $ | 15.61 | 18.76 | % | $ | 9.0 | 6.65 | % | 1.26 | %‡ | .72 | % | 81 | % | |||||||||||||||||
Period from 10/8/2008^ to 8/31/2009 | $ | 0.00 | $ | 14.05 | 44.66 | %** | $ | 4.0 | 14.78 | %* | 1.28 | %‡* | 1.55 | %* | 84 | %** | |||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 14.92 | (4.84 | %) | $ | 4.1 | 2.23 | % | 1.50 | %‡ | .53 | % | 78 | % | |||||||||||||||||
8/31/2011 | $ | 0.00 | $ | 15.74 | 3.16 | % | $ | 4.9 | 3.22 | % | 1.50 | %‡ | .19 | % | 71 | % | |||||||||||||||||
8/31/2010 | $ | 0.00 | $ | 15.57 | 18.58 | % | $ | 5.5 | 6.71 | % | 1.51 | %‡ | .61 | % | 81 | % | |||||||||||||||||
Period from 10/8/2008^ to 8/31/2009 | $ | 0.00 | $ | 14.02 | 44.38 | %** | $ | 1.8 | 18.97 | %* | 1.53 | %‡* | 1.31 | %* | 84 | %** | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 14.61 | (5.50 | %) | $ | 1.4 | 2.93 | % | 2.25 | %‡ | (.17 | %) | 78 | % | |||||||||||||||||
8/31/2011 | $ | 0.00 | $ | 15.46 | 2.41 | % | $ | 1.1 | 3.80 | % | 2.26 | %‡ | (.12 | %) | 71 | % | |||||||||||||||||
8/31/2010 | $ | 0.00 | $ | 15.41 | 17.62 | % | $ | 0.2 | 7.05 | % | 2.26 | %‡ | (.63 | %) | 81 | % | |||||||||||||||||
Period from 10/8/2008^ to 8/31/2009 | $ | 0.00 | $ | 13.96 | 43.42 | %** | $ | 0.2 | 17.56 | %* | 2.28 | %‡* | .77 | %* | 84 | %** | |||||||||||||||||
Class R3 | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 14.71 | (5.22 | %) | $ | 0.3 | 2.49 | % | 1.92 | %‡ | .28 | % | 78 | % | |||||||||||||||||
8/31/2011 | $ | 0.00 | $ | 15.52 | 2.73 | % | $ | 0.0 | 8.02 | % | 1.91 | %‡ | (.04 | %) | 71 | % | |||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | 0.00 | $ | 15.42 | 2.12 | %** | $ | 0.0 | 39.77 | %* | 1.93 | %‡* | (.09 | %)* | 81 | %Ø | |||||||||||||||||
Equity Income Fund | |||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 11.74 | 8.49 | % | $ | 1,213.6 | .71 | % | .71 | %‡§ | 3.10 | % | 42 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 11.28 | 17.70 | % | $ | 701.7 | .80 | % | .80 | %‡§ | 2.93 | % | 22 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 10.02 | 18.81 | % | $ | 100.9 | 1.01 | % | .80 | %‡ | 4.09 | % | 29 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 8.74 | (15.54 | %) | $ | 18.9 | 1.32 | % | .80 | %‡ | 3.97 | % | 61 | % | |||||||||||||||||
8/31/2008‡‡ | $ | — | $ | 10.72 | 7.01 | %††† | $ | 5.6 | 3.63 | % | .96 | %‡ | 2.94 | % | 48 | % |
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 | |||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 11.24 | $ | 0.30 | $ | 0.57 | $ | 0.87 | $ | (0.33 | ) | $ | (0.08 | ) | $ | — | $ | (0.41 | ) | $ | — | ||||||||||||||||
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 | ) | $ | — | |||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 11.18 | $ | 0.22 | $ | 0.58 | $ | 0.80 | $ | (0.26 | ) | $ | (0.08 | ) | $ | — | $ | (0.34 | ) | $ | — | ||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 11.24 | $ | 0.29 | $ | 0.55 | $ | 0.84 | $ | (0.31 | ) | $ | (0.08 | ) | $ | — | $ | (0.39 | ) | $ | — | ||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 18.80 | $ | 0.14 | $ | 2.87 | $ | 3.01 | $ | (0.10 | ) | $ | — | $ | — | $ | (0.10 | ) | $ | — | |||||||||||||||||
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 | ) | $ | — | ||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 13.70 | $ | 0.07 | $ | 2.08 | $ | 2.15 | $ | (0.07 | ) | $ | — | $ | — | $ | (0.07 | ) | $ | — | |||||||||||||||||
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 | ) | $ | — |
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 | ||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 11.70 | 8.09 | % | $ | 1,012.3 | 1.13 | % | 1.13 | %‡§ | 2.70 | % | 42 | % | |||||||||||||||||
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 | 1.36 | % | 1.16 | %‡ | 3.70 | % | 29 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 8.72 | (16.01 | %) | $ | 43.0 | 2.31 | % | 1.16 | %‡ | 3.15 | % | 61 | % | |||||||||||||||||
Period from 6/9/2008^ to 8/31/2008 | $ | — | $ | 10.72 | (1.57 | %)** | $ | 23.6 | 5.67 | %* | 1.16 | %‡* | 2.72 | %* | 48 | %Ø | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 11.64 | 7.40 | % | $ | 380.4 | 1.84 | % | 1.84 | %‡§ | 1.98 | % | 42 | % | |||||||||||||||||
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 | 2.12 | % | 1.91 | %‡ | 3.15 | % | 29 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 8.70 | (16.60 | %) | $ | 4.3 | 2.80 | % | 1.91 | %‡ | 2.46 | % | 61 | % | |||||||||||||||||
Period from 6/9/2008^ to 8/31/2008 | $ | — | $ | 10.71 | (1.72 | %)** | $ | 1.2 | 6.94 | %* | 1.90 | %‡* | 2.22 | %* | 48 | %Ø | |||||||||||||||||
Class R3 | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 11.69 | 7.78 | % | $ | 1.1 | 1.41 | % | 1.41 | %‡§ | 2.59 | % | 42 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 11.24 | 16.92 | % | $ | 0.2 | 4.32 | % | 1.41 | %‡ | 2.44 | % | 22 | % | |||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | — | $ | 9.99 | (.04 | %)** | $ | 0.0 | 36.17 | %* | 1.41 | %‡* | 5.53 | %* | 29 | %Ø | |||||||||||||||||
Focus Fund | |||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 21.71 | 16.10 | % | $ | 534.3 | .97 | % | .97 | %‡ | .72 | % | 96 | % | |||||||||||||||||
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 | % | |||||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 15.78 | 15.82 | % | $ | 15.0 | 1.16 | % | 1.16 | %‡ | .52 | % | 96 | % | |||||||||||||||||
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 | 1.10 | % | 1.10 | %‡ | .31 | % | 90 | % |
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 | |||||||||||||||||||||||||||||
Advisor Class | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 9.41 | $ | 0.04 | $ | 1.42 | $ | 1.46 | $ | (0.08 | ) | $ | — | $ | — | $ | (0.08 | ) | $ | — | |||||||||||||||||
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 | ) | $ | — | ||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 18.84 | $ | 0.19 | $ | 2.87 | $ | 3.06 | $ | (0.14 | ) | $ | — | $ | — | $ | (0.14 | ) | $ | — | |||||||||||||||||
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 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 13.67 | $ | 0.09 | $ | 2.07 | $ | 2.16 | $ | (0.12 | ) | $ | — | $ | — | $ | (0.12 | ) | $ | — | |||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 9.32 | $ | (0.02 | ) | $ | 1.41 | $ | 1.39 | $ | (0.09 | ) | $ | — | $ | — | $ | (0.09 | ) | $ | — | ||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 34.28 | $ | 0.11 | $ | 1.94 | $ | 2.05 | $ | (0.53 | ) | $ | (1.15 | ) | $ | — | $ | (1.68 | ) | $ | — | ||||||||||||||||
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 | ) | $ | — | |||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 49.13 | $ | 0.11 | $ | 2.83 | $ | 2.94 | $ | (0.45 | ) | $ | (1.15 | ) | $ | — | $ | (1.60 | ) | $ | — | ||||||||||||||||
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 | ) | $ | — |
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 | ||||||||||||||||||||||||||
Advisor Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 10.79 | 15.68 | % | $ | 5.8 | 1.31 | % | 1.31 | %‡ | .37 | % | 96 | % | |||||||||||||||||
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 | 1.53 | % | 1.50 | %‡ | .40 | % | 89 | % | |||||||||||||||||
8/31/2008 | $ | — | $ | 12.64 | (7.55 | %) | $ | 16.7 | 1.33 | % | 1.33 | %‡ | .12 | % | 90 | % | |||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 21.76 | 16.39 | % | $ | 6.9 | .80 | % | .75 | %‡ | .97 | % | 96 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 18.84 | 17.85 | % | $ | 4.9 | .85 | % | .75 | %‡ | 1.03 | % | 113 | % | |||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | — | $ | 16.08 | (9.51 | %)** | $ | 0.0 | 36.90 | %* | .75 | %‡* | 1.80 | %* | 89 | %Ø | |||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 15.71 | 15.96 | % | $ | 0.7 | 1.22 | % | 1.11 | %‡ | .61 | % | 96 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 13.67 | 17.43 | % | $ | 0.4 | 2.20 | % | 1.11 | %‡ | .66 | % | 113 | % | |||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | — | $ | 11.73 | (9.56 | %)** | $ | 0.0 | 37.28 | %* | 1.11 | %‡* | 1.44 | %* | 89 | %Ø | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 10.62 | 15.04 | % | $ | 0.3 | 1.97 | % | 1.86 | %‡ | (.17 | %) | 96 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 9.32 | 16.62 | % | $ | 0.3 | 2.92 | % | 1.86 | %‡ | (.16 | %) | 113 | % | |||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | — | $ | 8.07 | (9.73 | %)** | $ | 0.0 | 38.06 | %* | 1.86 | %‡* | .69 | %* | 89 | %Ø | |||||||||||||||||
Genesis Fund | |||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 34.65 | 6.31 | % | $ | 2,256.0 | 1.03 | % | 1.03 | %‡ | .31 | % | 15 | % | |||||||||||||||||
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 | %## | |||||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 50.47 | 6.21 | % | $ | 3,037.6 | 1.11 | % | 1.11 | %‡ | .23 | % | 15 | % | |||||||||||||||||
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 | %## |
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 | |||||||||||||||||||||||||||||
Advisor Class | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 28.43 | $ | (0.01 | ) | $ | 1.58 | $ | 1.57 | $ | (0.43 | ) | $ | (1.15 | ) | $ | — | $ | (1.58 | ) | $ | — | |||||||||||||||
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 | ) | $ | — | |||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 47.48 | $ | 0.24 | $ | 2.73 | $ | 2.97 | $ | (0.59 | ) | $ | (1.15 | ) | $ | — | $ | (1.74 | ) | $ | — | ||||||||||||||||
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 | ) | $ | — | |||||||||||||||
Global Equity Fund | |||||||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 9.10 | $ | 0.09 | $ | 0.09 | $ | 0.18 | $ | (0.32 | ) | $ | — | $ | (0.46 | ) | $ | (0.78 | ) | $ | — | ||||||||||||||||
Period from 6/30/2011^ to 8/31/2011 | $ | 10.00 | $ | (0.00 | ) | $ | (0.90 | ) | $ | (0.90 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 9.09 | $ | 0.04 | $ | 0.11 | $ | 0.15 | $ | (0.30 | ) | $ | — | $ | (0.46 | ) | $ | (0.76 | ) | $ | — | ||||||||||||||||
Period from 6/30/2011^ to 8/31/2011 | $ | 10.00 | $ | (0.01 | ) | $ | (0.90 | ) | $ | (0.91 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 9.08 | $ | (0.02 | ) | $ | 0.11 | $ | 0.09 | $ | (0.30 | ) | $ | — | $ | (0.46 | ) | $ | (0.76 | ) | $ | — | |||||||||||||||
Period from 6/30/2011^ to 8/31/2011 | $ | 10.00 | $ | (0.02 | ) | $ | (0.90 | ) | $ | (0.92 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Global Thematic Opportunities Fund | |||||||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 9.44 | $ | 0.05 | $ | (0.73 | ) | $ | (0.68 | ) | $ | (0.02 | ) | $ | — | $ | — | $ | (0.02 | ) | $ | — | |||||||||||||||
Period from 6/30/2011^ to 8/31/2011 | $ | 10.00 | $ | (0.00 | ) | $ | (0.56 | ) | $ | (0.56 | ) | $ | — | $ | — | $ | — | $ | — | $ | — |
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 | ||||||||||||||||||||||||||
Advisor Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 28.42 | 5.91 | % | $ | 579.8 | 1.38 | % | 1.38 | %‡ | (.04 | %) | 15 | % | |||||||||||||||||
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 | %## | |||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 48.71 | 6.51 | % | $ | 5,707.1 | .86 | % | .85 | %‡ | .49 | % | 15 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 47.48 | 29.87 | % | $ | 4,975.0 | .89 | % | .87 | %‡ | .97 | % | 18 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 36.56 | 8.68 | % | $ | 3,571.8 | .87 | % | .85 | %‡ | .11 | % | 16 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 33.64 | (25.55 | %) | $ | 3,283.0 | .87 | % | .85 | %‡ | .18 | % | 12 | % | |||||||||||||||||
8/31/2008 | $ | — | $ | 48.09 | 10.48 | % | $ | 4,781.4 | .85 | % | .84 | %‡ | (.03 | %) | 18 | %## | |||||||||||||||||
Global Equity Fund | |||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 8.50 | 2.82 | % | $ | 4.3 | 10.85 | % | 1.15 | %‡ | 1.12 | % | 62 | % | |||||||||||||||||
Period from 6/30/2011^ to 8/31/2011 | $ | — | $ | 9.10 | (9.00 | %)** | $ | 0.8 | 55.68 | %* | 1.15 | %‡* | (.20 | %)* | 8 | %** | |||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 8.48 | 2.51 | % | $ | 0.1 | 11.83 | % | 1.51 | %‡ | .54 | % | 62 | % | |||||||||||||||||
Period from 6/30/2011^ to 8/31/2011 | $ | — | $ | 9.09 | (9.10 | %)** | $ | 0.1 | 69.65 | %* | 1.51 | %‡* | (.53 | %)* | 8 | %** | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 8.41 | 1.77 | % | $ | 0.0 | 12.88 | % | 2.26 | %‡ | (.30 | %) | 62 | % | |||||||||||||||||
Period from 6/30/2011^ to 8/31/2011 | $ | — | $ | 9.08 | (9.20 | %)** | $ | 0.0 | 74.49 | %* | 2.26 | %‡* | (1.31 | %)* | 8 | %** | |||||||||||||||||
Global Thematic Opportunities Fund | |||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 8.74 | (7.22 | %) | $ | 49.8 | 1.84 | % | 1.25 | %‡ | .56 | % | 57 | % | |||||||||||||||||
Period from 6/30/2011^ to 8/31/2011 | $ | — | $ | 9.44 | (5.60 | %)** | $ | 27.4 | 4.83 | %* | 1.25 | %‡* | (.14 | %)* | 11 | %** |
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 | |||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 9.44 | $ | 0.02 | $ | (0.75 | ) | $ | (0.73 | ) | $ | (0.01 | ) | $ | — | $ | — | $ | (0.01 | ) | $ | — | |||||||||||||||
Period from 6/30/2011^ to 8/31/2011 | $ | 10.00 | $ | (0.01 | ) | $ | (0.55 | ) | $ | (0.56 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 9.42 | $ | (0.05 | ) | $ | (0.73 | ) | $ | (0.78 | ) | $ | (0.01 | ) | $ | — | $ | — | $ | (0.01 | ) | $ | — | ||||||||||||||
Period from 6/30/2011^ to 8/31/2011 | $ | 10.00 | $ | (0.02 | ) | $ | (0.56 | ) | $ | (0.58 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Guardian Fund | |||||||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 14.49 | $ | 0.12 | $ | 1.29 | $ | 1.41 | $ | (0.10 | ) | $ | — | $ | — | $ | (0.10 | ) | $ | — | |||||||||||||||||
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 | ) | $ | — | ||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 11.32 | $ | 0.07 | $ | 1.01 | $ | 1.08 | $ | (0.09 | ) | $ | — | $ | — | $ | (0.09 | ) | $ | — | |||||||||||||||||
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 | ) | $ | — | ||||||||||||||
Advisor Class | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 12.77 | $ | 0.02 | $ | 1.16 | $ | 1.18 | $ | (0.04 | ) | $ | — | $ | — | $ | (0.04 | ) | $ | — | |||||||||||||||||
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 | ) | $ | — | ||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 14.52 | $ | 0.15 | $ | 1.29 | $ | 1.44 | $ | (0.13 | ) | $ | — | $ | — | $ | (0.13 | ) | $ | — | |||||||||||||||||
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 | $ | — | $ | — | $ | — | $ | — | $ | — |
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 | ||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 8.70 | (7.68 | %) | $ | 0.6 | 2.25 | % | 1.61 | %‡ | .27 | % | 57 | % | |||||||||||||||||
Period from 6/30/2011^ to 8/31/2011 | $ | — | $ | 9.44 | (5.60 | %)** | $ | 0.2 | 13.72 | %* | 1.61 | %‡* | (.50 | %)* | 11 | %** | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 8.63 | (8.25 | %) | $ | 0.1 | 3.11 | % | 2.36 | %‡ | (.57 | %) | 57 | % | |||||||||||||||||
Period from 6/30/2011^ to 8/31/2011 | $ | — | $ | 9.42 | (5.80 | %)** | $ | 0.1 | 21.31 | %* | 2.36 | %‡* | (1.32 | %)* | 11 | %** | |||||||||||||||||
Guardian Fund | |||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 15.80 | 9.84 | % | $ | 939.6 | .92 | % | .92 | %‡ | .79 | % | 26 | % | |||||||||||||||||
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 | % | |||||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 12.31 | 9.68 | % | $ | 113.5 | 1.09 | % | 1.09 | %‡ | .64 | % | 26 | % | |||||||||||||||||
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 | 1.06 | % | 1.06 | %‡ | .41 | % | 42 | % | |||||||||||||||||
Advisor Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 13.91 | 9.27 | % | $ | 0.6 | 1.50 | % | 1.50 | %‡§ | .19 | % | 26 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 12.77 | 20.59 | % | $ | 0.6 | 1.50 | % | 1.50 | %‡§ | .15 | % | 32 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 10.59 | 7.38 | % | $ | 0.5 | 2.59 | % | 1.50 | %‡ | (.16 | %) | 36 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 9.87 | (23.05 | %) | $ | 0.5 | 5.33 | % | 1.50 | %‡ | .13 | % | 29 | % | |||||||||||||||||
8/31/2008 | $ | — | $ | 14.65 | (5.96 | %) | $ | 0.9 | 3.44 | % | 1.50 | %‡ | (.04 | %) | 42 | % | |||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 15.83 | 10.03 | % | $ | 60.0 | .74 | % | .74 | %‡§ | 1.01 | % | 26 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 14.52 | 21.51 | % | $ | 33.5 | .75 | % | .75 | %‡§ | .77 | % | 32 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 12.01 | 8.22 | % | $ | 4.3 | .81 | % | .75 | %‡ | .65 | % | 36 | % | |||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | — | $ | 11.16 | 7.41 | %** | $ | 0.1 | 5.16 | %* | .75 | %‡* | 1.12 | %* | 29 | %Ø |
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 11.28 | $ | 0.07 | $ | 1.00 | $ | 1.07 | $ | (0.11 | ) | $ | — | $ | — | $ | (0.11 | ) | $ | — | |||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 12.60 | $ | (0.02 | ) | $ | 1.13 | $ | 1.11 | $ | (0.05 | ) | $ | — | $ | — | $ | (0.05 | ) | $ | — | ||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 12.72 | $ | 0.05 | $ | 1.13 | $ | 1.18 | $ | (0.11 | ) | $ | — | $ | — | $ | (0.11 | ) | $ | — | |||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 16.68 | $ | 0.15 | $ | (0.13 | ) | $ | 0.02 | $ | (0.14 | ) | $ | — | $ | — | $ | (0.14 | ) | $ | — | ||||||||||||||||
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 | ) | $ | — | ||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 18.47 | $ | 0.14 | $ | (0.13 | ) | $ | 0.01 | $ | (0.10 | ) | $ | — | $ | — | $ | (0.10 | ) | $ | — | ||||||||||||||||
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 | ) | $ | — |
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 | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 12.24 | 9.63 | % | $ | 17.6 | 1.12 | % | 1.11 | %‡ | .64 | % | 26 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 11.28 | 21.06 | % | $ | 10.8 | 1.15 | % | 1.11 | %‡ | .51 | % | 32 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 9.36 | 7.72 | % | $ | 3.5 | 1.22 | % | 1.11 | %‡ | .23 | % | 36 | % | |||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | — | $ | 8.75 | 7.36 | %** | $ | 0.5 | 2.24 | %* | 1.11 | %‡* | .41 | %* | 29 | %Ø | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 13.66 | 8.83 | % | $ | 1.3 | 1.88 | % | 1.86 | %‡ | (.13 | %) | 26 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 12.60 | 20.11 | % | $ | 1.1 | 1.90 | % | 1.86 | %‡ | (.28 | %) | 32 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 10.51 | 7.08 | % | $ | 0.4 | 2.46 | % | 1.86 | %‡ | (.51 | %) | 36 | % | |||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | — | $ | 9.86 | 7.06 | %** | $ | 0.1 | 6.27 | %* | 1.86 | %‡* | .01 | %* | 29 | %Ø | |||||||||||||||||
Class R3 | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 13.79 | 9.40 | % | $ | 0.5 | 1.39 | % | 1.36 | %‡ | .36 | % | 26 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 12.72 | 20.79 | % | $ | 0.4 | 1.44 | % | 1.36 | %‡ | .28 | % | 32 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 10.57 | 7.51 | % | $ | 0.1 | 3.12 | % | 1.36 | %‡ | (.02 | %) | 36 | % | |||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | — | $ | 9.88 | 7.27 | %** | $ | 0.1 | 5.77 | %* | 1.36 | %‡* | .51 | %* | 29 | %Ø | |||||||||||||||||
International Fund | |||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 16.56 | .26 | % | $ | 139.7 | 1.80 | % | 1.73 | %‡ | .97 | % | 29 | % | |||||||||||||||||
8/31/2011 | $ | 0.00 | $ | 16.68 | 16.28 | %b | $ | 166.9 | 1.60 | % | 1.45 | %‡ | .90 | % | 45 | % | |||||||||||||||||
8/31/2010 | $ | 0.00 | $ | 14.51 | 8.26 | % | $ | 172.5 | 1.41 | % | 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 | % | |||||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 18.38 | .15 | % | $ | 105.9 | 1.89 | % | 1.89 | %‡ | .80 | % | 29 | % | |||||||||||||||||
8/31/2011 | $ | 0.00 | $ | 18.47 | 15.91 | %b | $ | 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 | 1.35 | % | 1.35 | %‡ | 1.64 | % | 53 | % |
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 18.51 | $ | 0.20 | $ | (0.19 | ) | $ | 0.01 | $ | (0.12 | ) | $ | — | $ | — | $ | (0.12 | ) | $ | — | ||||||||||||||||
Period from 12/20/2010^ to 8/31/2011 | $ | 18.58 | $ | 0.07 | $ | (0.31 | ) | $ | (0.24 | ) | $ | — | $ | — | $ | — | $ | — | $ | 0.17 | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 18.41 | $ | 0.04 | $ | (0.15 | ) | $ | (0.11 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Period from 12/20/2010^ to 8/31/2011 | $ | 18.58 | $ | 0.06 | $ | (0.40 | ) | $ | (0.34 | ) | $ | — | $ | — | $ | — | $ | — | $ | 0.17 | |||||||||||||||||
International Institutional Fund | |||||||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 9.20 | $ | 0.16 | $ | (0.10 | ) | $ | 0.06 | $ | (0.11 | ) | $ | — | $ | — | $ | (0.11 | ) | $ | — | ||||||||||||||||
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 | ) | $ | — | ||||||||||||||
International Large Cap Fund | |||||||||||||||||||||||||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 9.35 | $ | 0.13 | $ | (0.24 | ) | $ | (0.11 | ) | $ | (0.10 | ) | $ | — | $ | — | $ | (0.10 | ) | $ | — | |||||||||||||||
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 | ) | $ | — | ||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 9.36 | $ | 0.15 | $ | (0.23 | ) | $ | (0.08 | ) | $ | (0.14 | ) | $ | — | $ | — | $ | (0.14 | ) | $ | — | |||||||||||||||
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 | ) | $ | — |
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 | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 18.40 | .17 | % | $ | 4.3 | 1.98 | % | 1.79 | %‡ | 1.15 | % | 29 | % | |||||||||||||||||
Period from 12/20/2010^ to 8/31/2011 | $ | 0.00 | $ | 18.51 | (.38 | %)b** | $ | 0.7 | 3.02 | %a* | 1.69 | %‡a* | .57 | %a* | 45 | %Ø | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 18.30 | (.60 | %) | $ | 0.2 | 2.90 | % | 2.61 | %‡ | .21 | % | 29 | % | |||||||||||||||||
Period from 12/20/2010^ to 8/31/2011 | $ | 0.00 | $ | 18.41 | (.91 | %)b** | $ | 0.1 | 8.24 | %a* | 2.33 | %‡a* | .48 | %a* | 45 | %Ø | |||||||||||||||||
International Institutional Fund | |||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 9.15 | .78 | % | $ | 491.6 | 1.16 | % | .84 | %‡ | 1.88 | % | 33 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 9.20 | 15.62 | % | $ | 342.6 | 1.23 | % | .80 | %‡ | 1.67 | % | 46 | % | |||||||||||||||||
8/31/2010 | $ | 0.00 | $ | 8.10 | 9.05 | % | $ | 168.1 | 1.24 | % | .80 | %‡ | 1.53 | % | 50 | % | |||||||||||||||||
8/31/2009 | $ | 0.00 | $ | 7.53 | (19.92 | %) | $ | 223.8 | 1.26 | % | .81 | %‡ | 2.01 | % | 98 | % | |||||||||||||||||
8/31/2008 | $ | 0.00 | $ | 9.84 | (16.90 | %) | $ | 411.5 | 1.11 | % | .80 | %‡ | 2.32 | % | 58 | % | |||||||||||||||||
International Large Cap Fund | |||||||||||||||||||||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 9.14 | (1.05 | %) | $ | 14.2 | 1.40 | % | 1.25 | %‡ | 1.47 | % | 29 | % | |||||||||||||||||
8/31/2011 | $ | 0.00 | $ | 9.35 | 13.09 | % | $ | 18.6 | 1.39 | % | 1.25 | %‡ | .97 | % | 54 | % | |||||||||||||||||
8/31/2010 | $ | 0.00 | $ | 8.31 | 5.87 | % | $ | 27.7 | 1.53 | % | 1.25 | %‡ | 1.10 | % | 45 | % | |||||||||||||||||
8/31/2009 | $ | 0.00 | $ | 7.93 | (18.84 | %) | $ | 28.9 | 1.73 | % | 1.27 | %‡ | 1.62 | % | 90 | % | |||||||||||||||||
8/31/2008 | $ | 0.00 | $ | 10.12 | (11.95 | %) | $ | 51.5 | 1.37 | % | 1.27 | %‡ | 2.07 | % | 97 | % | |||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 9.14 | (.65 | %) | $ | 172.0 | .99 | % | .90 | %‡ | 1.76 | % | 29 | % | |||||||||||||||||
8/31/2011 | $ | 0.00 | $ | 9.36 | 13.39 | % | $ | 161.5 | 1.01 | % | .90 | %‡ | 1.60 | % | 54 | % | |||||||||||||||||
8/31/2010 | $ | 0.00 | $ | 8.32 | 6.29 | % | $ | 129.5 | 1.12 | % | .90 | %‡ | 1.45 | % | 45 | % | |||||||||||||||||
8/31/2009 | $ | 0.00 | $ | 7.93 | (18.57 | %) | $ | 67.7 | 1.30 | % | .92 | %‡ | 2.00 | % | 90 | % | |||||||||||||||||
8/31/2008 | $ | 0.00 | $ | 10.15 | (11.60 | %) | $ | 114.4 | .97 | % | .92 | %‡ | 2.59 | % | 97 | % |
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 | |||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 9.30 | $ | 0.14 | $ | (0.24 | ) | $ | (0.10 | ) | $ | (0.11 | ) | $ | — | $ | — | $ | (0.11 | ) | $ | — | |||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 9.17 | $ | 0.06 | $ | (0.21 | ) | $ | (0.15 | ) | $ | (0.04 | ) | $ | — | $ | — | $ | (0.04 | ) | $ | — | |||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 9.27 | $ | 0.12 | $ | (0.25 | ) | $ | (0.13 | ) | $ | (0.10 | ) | $ | — | $ | — | $ | (0.10 | ) | $ | — | |||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 10.26 | $ | (0.01 | ) | $ | 1.09 | $ | 1.08 | $ | — | $ | (1.08 | ) | $ | — | $ | (1.08 | ) | $ | — | ||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 10.22 | $ | (0.05 | ) | $ | 1.07 | $ | 1.02 | $ | — | $ | (1.08 | ) | $ | — | $ | (1.08 | ) | $ | — | ||||||||||||||||
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 | ) | $ | — | $ | — | $ | — | $ | — | $ | — |
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 | ||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 9.09 | (.96 | %) | $ | 8.3 | 1.39 | % | 1.24 | %‡ | 1.56 | % | 29 | % | |||||||||||||||||
8/31/2011 | $ | 0.00 | $ | 9.30 | 13.06 | % | $ | 5.2 | 1.39 | % | 1.24 | %‡ | .81 | % | 54 | % | |||||||||||||||||
8/31/2010 | $ | 0.00 | $ | 8.27 | 5.87 | % | $ | 9.3 | 1.52 | % | 1.24 | %‡ | 1.24 | % | 45 | % | |||||||||||||||||
8/31/2009 | $ | 0.00 | $ | 7.90 | (18.83 | %) | $ | 4.0 | 2.17 | % | 1.29 | %‡ | 1.63 | % | 90 | % | |||||||||||||||||
Period from 12/20/2007^ to 8/31/2008 | $ | 0.00 | $ | 10.12 | (10.44 | %)** | $ | 2.2 | 1.70 | %* | 1.34 | %‡* | 1.15 | %* | 97 | %Ø | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 8.98 | (1.64 | %) | $ | 3.7 | 2.13 | % | 2.00 | %‡ | .65 | % | 29 | % | |||||||||||||||||
8/31/2011 | $ | 0.00 | $ | 9.17 | 12.19 | % | $ | 2.1 | 2.14 | % | 2.00 | %‡ | .57 | % | 54 | % | |||||||||||||||||
8/31/2010 | $ | 0.00 | $ | 8.20 | 5.02 | % | $ | 1.5 | 2.29 | % | 2.01 | %‡ | .45 | % | 45 | % | |||||||||||||||||
8/31/2009 | $ | 0.00 | $ | 7.87 | (19.34 | %) | $ | 0.4 | 3.94 | % | 2.01 | %‡ | 1.23 | % | 90 | % | |||||||||||||||||
Period from 12/20/2007^ to 8/31/2008 | $ | 0.00 | $ | 10.06 | (10.97 | %)** | $ | 0.1 | 4.08 | %* | 2.03 | %‡* | 2.05 | %* | 97 | %Ø | |||||||||||||||||
Class R3 | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 9.04 | (1.24 | %) | $ | 0.4 | 1.67 | % | 1.51 | %‡ | 1.35 | % | 29 | % | |||||||||||||||||
8/31/2011 | $ | 0.00 | $ | 9.27 | 12.71 | % | $ | 0.1 | 1.87 | % | 1.51 | %‡ | 1.15 | % | 54 | % | |||||||||||||||||
8/31/2010 | $ | 0.00 | $ | 8.26 | 5.57 | % | $ | 0.1 | 3.50 | % | 1.51 | %‡ | .87 | % | 45 | % | |||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | 0.00 | $ | 7.90 | 11.27 | %** | $ | 0.1 | 6.18 | %* | 1.52 | %‡* | 1.31 | %* | 90 | %Ø | |||||||||||||||||
Intrinsic Value Fund | |||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 10.26 | 12.21 | % | $ | 134.2 | 1.22 | % | 1.00 | %‡ | (.14 | %) | 30 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 10.26 | 13.08 | % | $ | 114.7 | 1.26 | % | 1.00 | %‡ | (.35 | %) | 44 | % | |||||||||||||||||
Period from 5/10/2010^ to 8/31/2010 | $ | — | $ | 9.41 | (5.90 | %)** | $ | 80.9 | 1.70 | %* | 1.00 | %‡* | .33 | %* | 19 | %** | |||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 10.16 | 11.62 | % | $ | 8.4 | 1.61 | % | 1.36 | %‡ | (.51 | %) | 30 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 10.22 | 12.74 | % | $ | 8.6 | 1.65 | % | 1.36 | %‡ | (.73 | %) | 44 | % | |||||||||||||||||
Period from 5/10/2010^ to 8/31/2010 | $ | — | $ | 9.40 | (6.00 | %)** | $ | 0.6 | 2.11 | %* | 1.36 | %‡* | (.02 | %)* | 19 | %** |
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 C | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 10.14 | $ | (0.12 | ) | $ | 1.06 | $ | 0.94 | $ | — | $ | (1.08 | ) | $ | — | $ | (1.08 | ) | $ | — | ||||||||||||||||
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 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Large Cap Disciplined Growth Fund | |||||||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 7.38 | $ | 0.01 | $ | 0.62 | $ | 0.63 | $ | — | $ | (0.33 | ) | $ | — | $ | (0.33 | ) | $ | — | |||||||||||||||||
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 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 7.41 | $ | 0.03 | $ | 0.62 | $ | 0.65 | $ | (0.01 | ) | $ | (0.33 | ) | $ | — | $ | (0.34 | ) | $ | — | ||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 7.37 | $ | 0.00 | $ | 0.63 | $ | 0.63 | $ | — | $ | (0.33 | ) | $ | — | $ | (0.33 | ) | $ | — | |||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 7.26 | $ | (0.05 | ) | $ | 0.60 | $ | 0.55 | $ | — | $ | (0.33 | ) | $ | — | $ | (0.33 | ) | $ | — | ||||||||||||||||
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 | $ | — | $ | — | $ | — | $ | — | $ | — |
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 C | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 10.00 | 10.87 | % | $ | 6.9 | 2.35 | % | 2.11 | %‡ | (1.25 | %) | 30 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 10.14 | 11.91 | % | $ | 5.5 | 2.34 | % | 2.11 | %‡ | (1.48 | %) | 44 | % | |||||||||||||||||
Period from 5/10/2010^ to 8/31/2010 | $ | — | $ | 9.38 | (6.20 | %)** | $ | 0.0 | 3.09 | %* | 2.11 | %‡* | (.79 | %)* | 19 | %** | |||||||||||||||||
Large Cap Disciplined Growth Fund | |||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 7.68 | 9.12 | % | $ | 17.8 | 1.11 | % | 1.11 | %‡§ | .08 | % | 116 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 7.38 | 19.44 | % | $ | 15.5 | 1.11 | % | 1.11 | %‡§ | (.08 | %) | 101 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 6.18 | 2.37 | % | $ | 11.4 | 1.23 | % | 1.11 | %‡ | .29 | % | 104 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 6.04 | (18.27 | %) | $ | 11.7 | 2.50 | % | 1.34 | %‡ | .40 | % | 132 | %### | |||||||||||||||||
8/31/2008 | $ | — | $ | 7.39 | (.81 | %) | $ | 11.9 | 2.53 | % | 1.50 | %‡ | (.00 | %) | 167 | % | |||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 7.72 | 9.43 | % | $ | 601.6 | .78 | % | .75 | %‡ | .44 | % | 116 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 7.41 | 19.79 | % | $ | 565.4 | .80 | % | .75 | %‡ | .29 | % | 101 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 6.20 | 2.76 | % | $ | 346.6 | .87 | % | .75 | %‡ | .61 | % | 104 | % | |||||||||||||||||
Period from 4/6/2009^ to 8/31/2009 | $ | — | $ | 6.05 | 14.58 | %** | $ | 23.3 | 1.57 | %* | .75 | %‡* | .86 | %* | 132 | %Ø### | |||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 7.67 | 9.13 | % | $ | 67.1 | 1.16 | % | 1.11 | %‡ | .06 | % | 116 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 7.37 | 19.30 | % | $ | 40.2 | 1.19 | % | 1.11 | %‡ | (.09 | %) | 101 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 6.18 | 2.32 | % | $ | 33.0 | 1.30 | % | 1.11 | %‡ | .35 | % | 104 | % | |||||||||||||||||
Period from 4/6/2009^ to 8/31/2009 | $ | — | $ | 6.04 | 14.39 | %** | $ | 63.7 | 1.79 | %* | 1.11 | %‡* | .47 | %* | 132 | %Ø### | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 7.48 | 8.14 | % | $ | 33.4 | 1.90 | % | 1.86 | %‡ | (.67 | %) | 116 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 7.26 | 18.63 | % | $ | 37.0 | 1.92 | % | 1.86 | %‡ | (.83 | %) | 101 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 6.12 | 1.66 | % | $ | 31.0 | 2.01 | % | 1.86 | %‡ | (.46 | %) | 104 | % | |||||||||||||||||
Period from 4/6/2009^ to 8/31/2009 | $ | — | $ | 6.02 | 14.02 | %** | $ | 25.9 | 2.56 | %* | 1.86 | %‡* | (.28 | %)* | 132 | %Ø### |
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 | |||||||||||||||||||||||||||||
Class R3 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 7.34 | $ | (0.01 | ) | $ | 0.61 | $ | 0.60 | $ | — | $ | (0.33 | ) | $ | — | $ | (0.33 | ) | $ | — | ||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 24.97 | $ | 0.30 | $ | 1.30 | $ | 1.60 | $ | (0.11 | ) | $ | — | $ | — | $ | (0.11 | ) | $ | — | |||||||||||||||||
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 | ) | $ | — | ||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 19.15 | $ | 0.19 | $ | 1.00 | $ | 1.19 | $ | (0.04 | ) | $ | — | $ | — | $ | (0.04 | ) | $ | — | |||||||||||||||||
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 | ) | $ | — | ||||||||||||||
Advisor Class | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 16.50 | $ | 0.14 | $ | 0.87 | $ | 1.01 | $ | (0.05 | ) | $ | — | $ | — | $ | (0.05 | ) | $ | — | |||||||||||||||||
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 | ) | $ | — | ||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 25.11 | $ | 0.34 | $ | 1.30 | $ | 1.64 | $ | (0.16 | ) | $ | — | $ | — | $ | (0.16 | ) | $ | — | |||||||||||||||||
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 | ) | $ | — |
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 | ||||||||||||||||||||||||||
Class R3 | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 7.61 | 8.75 | % | $ | 0.3 | 1.44 | % | 1.36 | %‡ | (.18 | %) | 116 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 7.34 | 19.16 | % | $ | 0.3 | 1.48 | % | 1.36 | %‡ | (.29 | %) | 101 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 6.16 | 2.16 | % | $ | 0.1 | 3.23 | % | 1.36 | %‡ | .04 | % | 104 | % | |||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | — | $ | 6.03 | 10.24 | %** | $ | 0.1 | 6.21 | %* | 1.36 | %‡* | .20 | %* | 132 | %Ø### | |||||||||||||||||
Large Cap Value Fund | |||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 26.46 | 6.47 | % | $ | 1,057.1 | .87 | % | .87 | %‡ | 1.20 | % | 171 | % | |||||||||||||||||
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 | .80 | % | .80 | %‡ | .42 | % | 41 | % | |||||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 20.30 | 6.26 | % | $ | 209.6 | 1.05 | % | 1.05 | %‡ | .97 | % | 171 | % | |||||||||||||||||
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 | 1.05 | % | 1.04 | %‡ | .70 | % | 35 | % | |||||||||||||||||
8/31/2008 | $ | — | $ | 22.25 | (6.40 | %) | $ | 1,004.0 | .99 | % | .99 | %‡ | .23 | % | 41 | % | |||||||||||||||||
Advisor Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 17.46 | 6.13 | % | $ | 220.0 | 1.20 | % | 1.20 | %‡ | .84 | % | 171 | % | |||||||||||||||||
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 | 1.14 | % | 1.14 | %‡ | .08 | % | 41 | % | |||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 26.59 | 6.61 | % | $ | 103.0 | .70 | % | .70 | %‡ | 1.35 | % | 171 | % | |||||||||||||||||
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 | .71 | % | .70 | %‡ | 1.01 | % | 35 | % | |||||||||||||||||
8/31/2008 | $ | — | $ | 29.06 | (6.08 | %) | $ | 168.1 | .65 | % | .65 | %‡ | .59 | % | 41 | % |
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 A | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 19.06 | $ | 0.20 | $ | 0.97 | $ | 1.17 | $ | (0.16 | ) | $ | — | $ | — | $ | (0.16 | ) | $ | — | |||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 16.31 | $ | 0.05 | $ | 0.83 | $ | 0.88 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
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 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Class R3 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 16.41 | $ | 0.15 | $ | 0.82 | $ | 0.97 | $ | (0.04 | ) | $ | — | $ | — | $ | (0.04 | ) | $ | — | |||||||||||||||||
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 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Mid Cap Growth Fund | |||||||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 10.84 | $ | (0.06 | ) | $ | 1.22 | $ | 1.16 | $ | — | $ | (0.02 | ) | $ | — | $ | (0.02 | ) | $ | — | ||||||||||||||||
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 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 16.48 | $ | (0.10 | ) | $ | 1.85 | $ | 1.75 | $ | — | $ | (0.00 | ) | $ | — | $ | (0.00 | ) | $ | — | ||||||||||||||||
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 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Advisor Class | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 16.82 | $ | (0.17 | ) | $ | 1.89 | $ | 1.72 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
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 | ) | $ | — | $ | — | $ | — | $ | — | $ | — |
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 A | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 20.07 | 6.24 | % | $ | 2.0 | 1.07 | % | 1.07 | %‡§ | 1.03 | % | 171 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 19.06 | 13.20 | % | $ | 1.4 | 1.29 | % | 1.11 | %‡ | .30 | % | 41 | % | |||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | — | $ | 16.90 | (7.95 | %)** | $ | 0.0 | 35.72 | %* | 1.11 | %‡* | .16 | %* | 42 | %Ø | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 17.19 | 5.40 | % | $ | 0.2 | 2.04 | % | 1.86 | %‡ | .27 | % | 171 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 16.31 | 12.32 | % | $ | 0.1 | 4.61 | % | 1.86 | %‡ | (.56 | %) | 41 | % | |||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | — | $ | 14.57 | (8.08 | %)** | $ | 0.0 | 37.45 | %* | 1.86 | %‡* | (.60 | %)* | 42 | %Ø | |||||||||||||||||
Class R3 | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 17.34 | 5.95 | % | $ | 0.6 | 1.39 | % | 1.36 | %‡ | .93 | % | 171 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 16.41 | 12.93 | % | $ | 0.0 | 6.07 | % | 1.36 | %‡ | (.08 | %) | 41 | % | |||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | — | $ | 14.58 | (8.01 | %)** | $ | 0.0 | 36.96 | %* | 1.36 | %‡* | (.09 | %)* | 42 | %Ø | |||||||||||||||||
Mid Cap Growth Fund | |||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 11.98 | 10.73 | % | $ | 347.9 | 1.01 | % | 1.01 | %‡ | (.51 | %) | 40 | % | |||||||||||||||||
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 | % | |||||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 18.23 | 10.65 | % | $ | 39.9 | 1.05 | % | 1.05 | %‡ | (.55 | %) | 40 | % | |||||||||||||||||
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 | % | |||||||||||||||||
Advisor Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 18.54 | 10.23 | % | $ | 10.2 | 1.44 | % | 1.44 | %‡§ | (.95 | %) | 40 | % | |||||||||||||||||
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 | 1.86 | % | 1.50 | %‡ | (.57 | %) | 69 | % | |||||||||||||||||
8/31/2008 | $ | — | $ | 14.98 | (9.98 | %) | $ | 3.2 | 2.38 | % | 1.49 | %‡ | (.98 | %) | 70 | % |
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 | |||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 11.01 | $ | (0.03 | ) | $ | 1.23 | $ | 1.20 | $ | — | $ | (0.05 | ) | $ | — | $ | (0.05 | ) | $ | — | ||||||||||||||||
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 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 16.49 | $ | (0.11 | ) | $ | 1.86 | $ | 1.75 | $ | — | $ | (0.01 | ) | $ | — | $ | (0.01 | ) | $ | — | ||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 16.68 | $ | (0.24 | ) | $ | 1.87 | $ | 1.63 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 16.87 | $ | (0.16 | ) | $ | 1.90 | $ | 1.74 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
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 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Mid Cap Intrinsic Value Fund | |||||||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 14.18 | $ | 0.10 | $ | 1.68 | $ | 1.78 | $ | (0.06 | ) | $ | — | $ | — | $ | (0.06 | ) | $ | — | |||||||||||||||||
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 | ) | $ | — |
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 | ||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 12.16 | 10.96 | % | $ | 174.2 | .79 | % | .75 | %‡ | (.26 | %) | 40 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 11.01 | 28.92 | % | $ | 113.8 | .81 | % | .75 | %‡ | (.21 | %) | 49 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 8.54 | 13.87 | % | $ | 121.1 | .83 | % | .75 | %‡ | (.22 | %) | 70 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 7.50 | (21.63 | %) | $ | 146.6 | .87 | % | .75 | %‡ | .12 | % | 69 | % | |||||||||||||||||
8/31/2008 | $ | — | $ | 9.57 | (9.29 | %) | $ | 51.1 | .78 | % | .75 | %‡ | (.22 | %) | 70 | % | |||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 18.23 | 10.61 | % | $ | 63.2 | 1.17 | % | 1.11 | %‡ | (.62 | %) | 40 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 16.49 | 28.43 | % | $ | 25.2 | 1.19 | % | 1.11 | %‡ | (.56 | %) | 49 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 12.84 | 13.53 | % | $ | 13.6 | 1.28 | % | 1.11 | %‡ | (.51 | %) | 70 | % | |||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | — | $ | 11.31 | 9.38 | %** | $ | 0.1 | 4.05 | %* | 1.11 | %‡* | (.01 | %)* | 69 | %Ø | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 18.31 | 9.77 | % | $ | 2.4 | 1.98 | % | 1.86 | %‡ | (1.36 | %) | 40 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 16.68 | 27.43 | % | $ | 0.6 | 2.04 | % | 1.86 | %‡ | (1.36 | %) | 49 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 13.09 | 12.65 | % | $ | 0.2 | 2.64 | % | 1.86 | %‡ | (1.32 | %) | 70 | % | |||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | — | $ | 11.62 | 9.21 | %** | $ | 0.1 | 6.29 | %* | 1.86 | %‡* | (.64 | %)* | 69 | %Ø | |||||||||||||||||
Class R3 | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 18.61 | 10.31 | % | $ | 3.0 | 1.45 | % | 1.36 | %‡ | (.89 | %) | 40 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 16.87 | 28.09 | % | $ | 0.5 | 1.50 | % | 1.36 | %‡ | (.91 | %) | 49 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 13.17 | 13.24 | % | $ | 0.1 | 3.15 | % | 1.36 | %‡ | (.84 | %) | 70 | % | |||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | — | $ | 11.63 | 9.30 | %** | $ | 0.1 | 5.78 | %* | 1.36 | %‡* | (.14 | %)* | 69 | %Ø | |||||||||||||||||
Mid Cap Intrinsic Value Fund | |||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 15.90 | 12.62 | % | $ | 46.0 | 1.39 | % | 1.18 | %‡ | .69 | % | 118 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 14.18 | 15.79 | % | $ | 46.5 | 1.33 | % | 1.22 | %‡ | .38 | % | 27 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 12.26 | 11.51 | % | $ | 55.9 | 1.24 | % | 1.22 | %‡ | .10 | % | 51 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 11.07 | (21.04 | %) | $ | 43.8 | 1.37 | % | 1.36 | %‡ | .78 | % | 51 | % | |||||||||||||||||
8/31/2008 | $ | — | $ | 15.02 | (9.93 | %) | $ | 79.1 | 1.12 | % | 1.11 | %‡ | .43 | % | 60 | % |
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 | |||||||||||||||||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 12.34 | $ | 0.08 | $ | 1.46 | $ | 1.54 | $ | (0.06 | ) | $ | — | $ | — | $ | (0.06 | ) | $ | — | |||||||||||||||||
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 | ) | $ | — | ||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 14.22 | $ | 0.15 | $ | 1.67 | $ | 1.82 | $ | (0.11 | ) | $ | — | $ | — | $ | (0.11 | ) | $ | — | |||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 12.34 | $ | 0.08 | $ | 1.46 | $ | 1.54 | $ | (0.06 | ) | $ | — | $ | — | $ | (0.06 | ) | $ | — | |||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 12.25 | $ | (0.01 | ) | $ | 1.45 | $ | 1.44 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 12.32 | $ | 0.05 | $ | 1.46 | $ | 1.51 | $ | (0.03 | ) | $ | — | $ | — | $ | (0.03 | ) | $ | — | |||||||||||||||||
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 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Multi-Cap Opportunities Fund | |||||||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 9.59 | $ | 0.17 | $ | 1.27 | $ | 1.44 | $ | (0.02 | ) | $ | (0.25 | ) | $ | — | $ | (0.27 | ) | $ | — | ||||||||||||||||
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 | ) | $ | — |
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 | ||||||||||||||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 13.82 | 12.51 | % | $ | 18.4 | 1.60 | % | 1.25 | %‡ | .61 | % | 118 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 12.34 | 15.66 | % | $ | 24.1 | 1.54 | % | 1.26 | %‡ | .33 | % | 27 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 10.68 | 11.55 | % | $ | 80.5 | 1.42 | % | 1.25 | %‡ | .07 | % | 51 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 9.66 | (20.96 | %) | $ | 26.9 | 1.59 | % | 1.25 | %‡ | .89 | % | 51 | % | |||||||||||||||||
8/31/2008 | $ | — | $ | 13.09 | (10.03 | %) | $ | 52.8 | 1.36 | % | 1.24 | %‡ | .30 | % | 60 | % | |||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 15.93 | 12.94 | % | $ | 4.4 | 1.19 | % | .85 | %‡ | 1.01 | % | 118 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 14.22 | 16.26 | % | $ | 3.5 | 1.16 | % | .86 | %‡ | .67 | % | 27 | % | |||||||||||||||||
Period from 3/8/2010^ to 8/31/2010 | $ | — | $ | 12.28 | (6.40 | %)** | $ | 0.7 | 1.03 | %* | .85 | %‡* | .48 | %* | 51 | %Ø | |||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 13.82 | 12.56 | % | $ | 3.8 | 1.61 | % | 1.21 | %‡ | .63 | % | 118 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 12.34 | 15.70 | % | $ | 1.2 | 1.91 | % | 1.22 | %‡ | .37 | % | 27 | % | |||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | — | $ | 10.68 | (6.40 | %)** | $ | 0.0 | 37.23 | %* | 1.21 | %‡* | .04 | %* | 51 | %Ø | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 13.69 | 11.76 | % | $ | 0.4 | 2.43 | % | 1.96 | %‡ | (.09 | %) | 118 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 12.25 | 14.92 | % | $ | 0.1 | 3.97 | % | 1.97 | %‡ | (.31 | %) | 27 | % | |||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | — | $ | 10.66 | (6.57 | %)** | $ | 0.0 | 35.88 | %* | 1.96 | %‡* | (.64 | %)* | 51 | %Ø | |||||||||||||||||
Class R3 | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 13.80 | 12.25 | % | $ | 0.2 | 1.88 | % | 1.46 | %‡ | .41 | % | 118 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 12.32 | 15.46 | % | $ | 0.2 | 6.06 | % | 1.47 | %‡ | .32 | % | 27 | % | |||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | — | $ | 10.67 | (6.49 | %)** | $ | 0.0 | 37.59 | %* | 1.46 | %‡* | (.22 | %)* | 51 | %Ø | |||||||||||||||||
Multi-Cap Opportunities Fund | |||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 10.76 | 15.56 | % | $ | 465.5 | 1.00 | % | 1.00 | %^^§ | 1.70 | % | 29 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 9.59 | 20.09 | % | $ | 91.0 | 1.21 | % | 1.01 | %^^ | .64 | % | 105 | % | |||||||||||||||||
8/31/2010‡‡‡ | $ | — | $ | 8.03 | 3.02 | %†††† | $ | 47.2 | 1.95 | % | 1.00 | %^^ | 1.10 | % | 62 | % | |||||||||||||||||
8/31/2009‡‡‡ | $ | — | $ | 7.93 | (17.74 | %)†††† | $ | 3.1 | 5.67 | % | 1.02 | %^^ | 1.02 | % | 124 | % | |||||||||||||||||
8/31/2008‡‡‡ | $ | — | $ | 9.84 | (7.53 | %)†††† | $ | 5.0 | 2.33 | % | 1.01 | %^^ | .46 | % | 129 | % |
238
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 9.56 | $ | 0.13 | $ | 1.27 | $ | 1.40 | $ | (0.01 | ) | $ | (0.25 | ) | $ | — | $ | (0.26 | ) | $ | — | ||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 9.47 | $ | 0.07 | $ | 1.23 | $ | 1.30 | $ | — | $ | (0.25 | ) | $ | — | $ | (0.25 | ) | $ | — | |||||||||||||||||
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 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Real Estate Fund | |||||||||||||||||||||||||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 11.80 | $ | 0.14 | $ | 2.12 | $ | 2.26 | $ | (0.19 | ) | $ | (0.05 | ) | $ | — | $ | (0.24 | ) | $ | — | ||||||||||||||||
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 | ) | $ | — | |||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 11.83 | $ | 0.15 | $ | 2.14 | $ | 2.29 | $ | (0.21 | ) | $ | (0.05 | ) | $ | — | $ | (0.26 | ) | $ | — | ||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 11.80 | $ | 0.11 | $ | 2.13 | $ | 2.24 | $ | (0.17 | ) | $ | (0.05 | ) | $ | — | $ | (0.22 | ) | $ | — | ||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 11.80 | $ | 0.01 | $ | 2.14 | $ | 2.15 | $ | (0.09 | ) | $ | (0.05 | ) | $ | — | $ | (0.14 | ) | $ | — | ||||||||||||||||
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 | ) | $ | — |
See Notes to Financial Highlights
239
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 | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 10.70 | 15.13 | % | $ | 2.8 | 1.36 | % | 1.36 | %^^§ | 1.29 | % | 29 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 9.56 | 19.48 | % | $ | 0.2 | 1.69 | % | 1.37 | %^^ | .28 | % | 105 | % | |||||||||||||||||
Period from 12/21/2009^ to 8/31/2010 | $ | — | $ | 8.02 | (4.30 | %)** | $ | 0.3 | 3.18 | %* | 1.36 | %^^* | .58 | %* | 62 | %Ø | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 10.52 | 14.22 | % | $ | 0.4 | 2.14 | % | 2.11 | %^^ | .70 | % | 29 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 9.47 | 18.82 | % | $ | 0.2 | 2.43 | % | 2.12 | %^^ | (.50 | %) | 105 | % | |||||||||||||||||
Period from 12/21/2009^ to 8/31/2010 | $ | — | $ | 7.97 | (4.89 | %)** | $ | 0.1 | 6.43 | %* | 2.12 | %^^* | (.18 | %)* | 62 | %Ø | |||||||||||||||||
Real Estate Fund | |||||||||||||||||||||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 13.82 | 19.53 | % | $ | 288.9 | 1.47 | % | 1.03 | %‡ | 1.10 | % | 29 | % | |||||||||||||||||
8/31/2011 | $ | 0.01 | $ | 11.80 | 17.53 | % | $ | 216.3 | 1.55 | % | .99 | %‡ | .75 | % | 28 | % | |||||||||||||||||
8/31/2010 | $ | 0.00 | $ | 10.23 | 35.09 | % | $ | 126.7 | 1.75 | % | .99 | %‡ | 1.73 | % | 70 | % | |||||||||||||||||
8/31/2009 | $ | 0.00 | $ | 7.74 | (23.69 | %) | $ | 63.0 | 2.02 | % | .99 | %‡ | 3.61 | % | 181 | % | |||||||||||||||||
8/31/2008 | $ | 0.00 | $ | 10.65 | (5.32 | %) | $ | 53.0 | 1.83 | % | .97 | %‡ | 1.93 | % | 187 | % | |||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 13.86 | 19.77 | % | $ | 228.6 | 1.10 | % | .85 | %‡ | 1.21 | % | 29 | % | |||||||||||||||||
8/31/2011 | �� | $ | 0.00 | $ | 11.83 | 17.77 | % | $ | 117.1 | 1.16 | % | .85 | %‡ | .81 | % | 28 | % | ||||||||||||||||
8/31/2010 | $ | 0.00 | $ | 10.25 | 35.18 | % | $ | 22.6 | 1.39 | % | .85 | %‡ | 1.77 | % | 70 | % | |||||||||||||||||
8/31/2009 | $ | 0.00 | $ | 7.76 | (23.46 | %) | $ | 3.3 | 2.80 | % | .85 | %‡ | 3.47 | % | 181 | % | |||||||||||||||||
Period from 6/4/2008^ to 8/31/2008 | $ | 0.00 | $ | 10.66 | (1.31 | %)** | $ | 1.7 | 1.77 | %* | .86 | %‡* | 2.76 | %* | 187 | %Ø | |||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 13.82 | 19.33 | % | $ | 78.3 | 1.51 | % | 1.21 | %‡ | .86 | % | 29 | % | |||||||||||||||||
8/31/2011 | $ | 0.00 | $ | 11.80 | 17.33 | % | $ | 36.3 | 1.60 | % | 1.21 | %‡ | .33 | % | 28 | % | |||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | 0.00 | $ | 10.23 | (.98 | %)** | $ | 0.5 | 12.56 | %* | 1.21 | %‡* | .68 | %* | 70 | %Ø | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 13.81 | 18.40 | % | $ | 20.7 | 2.28 | % | 1.96 | %‡ | .09 | % | 29 | % | |||||||||||||||||
8/31/2011 | $ | 0.00 | $ | 11.80 | 16.44 | % | $ | 8.3 | 2.37 | % | 1.96 | %‡ | (.46 | %) | 28 | % | |||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | 0.00 | $ | 10.24 | (1.08 | %)** | $ | 0.1 | 20.75 | %* | 1.96 | %‡* | .66 | %* | 70 | %Ø |
240
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 11.80 | $ | 0.05 | $ | 2.17 | $ | 2.22 | $ | (0.16 | ) | $ | (0.05 | ) | $ | — | $ | (0.21 | ) | $ | — | ||||||||||||||||
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 | ) | $ | — | ||||||||||||||
Select Equities Fund | |||||||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 9.05 | $ | 0.02 | $ | 0.98 | $ | 1.00 | $ | (0.02 | ) | $ | (0.69 | ) | $ | — | $ | (0.71 | ) | $ | — | ||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 9.03 | $ | (0.02 | ) | $ | 0.97 | $ | 0.95 | $ | — | $ | (0.69 | ) | $ | — | $ | (0.69 | ) | $ | — | ||||||||||||||||
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 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 8.82 | $ | (0.08 | ) | $ | 0.93 | $ | 0.85 | $ | — | $ | (0.69 | ) | $ | — | $ | (0.69 | ) | $ | — | ||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 17.74 | $ | (0.17 | ) | $ | 1.92 | $ | 1.75 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
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 | ) | $ | — | $ | — | $ | — | $ | — | $ | — |
See Notes to Financial Highlights
241
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 | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 13.81 | 19.07 | % | $ | 4.8 | 1.74 | % | 1.46 | %‡ | .41 | % | 29 | % | |||||||||||||||||
8/31/2011 | $ | 0.00 | $ | 11.80 | 17.00 | % | $ | 0.3 | 2.81 | % | 1.46 | %‡ | (.06 | %) | 28 | % | |||||||||||||||||
Period from 6/21/2010^ to 8/31/2010 | $ | 0.00 | $ | 10.23 | (1.04 | %)** | $ | 0.0 | 37.36 | %* | 1.46 | %‡* | .93 | %* | 70 | %Ø | |||||||||||||||||
Select Equities Fund | |||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 9.34 | 12.21 | % | $ | 27.1 | 1.15 | % | .75 | %‡ | .26 | % | 93 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 9.05 | 18.62 | % | $ | 27.3 | 1.17 | % | .75 | %‡ | .67 | % | 150 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 7.91 | .44 | % | $ | 17.6 | 1.22 | % | .75 | %‡ | .78 | % | 129 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 8.06 | (12.03 | %) | $ | 6.5 | 2.57 | % | .75 | %‡ | 1.04 | % | 93 | % | |||||||||||||||||
Period from 12/20/2007^ to 8/31/2008 | $ | — | $ | 9.20 | (8.00 | %)** | $ | 2.3 | 13.92 | %* | .76 | %‡* | 1.17 | %* | 53 | %** | |||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 9.29 | 11.62 | % | $ | 29.2 | 1.53 | % | 1.20 | %‡ | (.20 | %) | 93 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 9.03 | 18.15 | % | $ | 30.9 | 1.58 | % | 1.20 | %‡ | .23 | % | 150 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 7.88 | (.11 | %) | $ | 38.0 | 1.60 | % | 1.20 | %‡ | .36 | % | 129 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 8.05 | (11.95 | %) | $ | 38.3 | 2.19 | % | 1.20 | %‡ | .52 | % | 93 | % | |||||||||||||||||
Period from 12/20/2007^ to 8/31/2008 | $ | — | $ | 9.18 | (8.20 | %)** | $ | 4.9 | 3.99 | %* | 1.24 | %‡* | .63 | %* | 53 | %** | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 8.98 | 10.71 | % | $ | 11.7 | 2.28 | % | 1.95 | %‡ | (.96 | %) | 93 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 8.82 | 17.29 | % | $ | 13.2 | 2.30 | % | 1.95 | %‡ | (.53 | %) | 150 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 7.74 | (.75 | %) | $ | 11.6 | 2.35 | % | 1.95 | %‡ | (.41 | %) | 129 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 7.94 | (12.58 | %) | $ | 7.4 | 2.91 | % | 1.95 | %‡ | (.22 | %) | 93 | % | |||||||||||||||||
Period from 12/20/2007^ to 8/31/2008 | $ | — | $ | 9.12 | (8.80 | %)** | $ | 0.8 | 7.21 | %* | 1.98 | %‡* | (.08 | %)* | 53 | %** | |||||||||||||||||
Small Cap Growth Fund | |||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 19.49 | 9.86 | % | $ | 60.1 | 1.58 | % | 1.21 | %‡ | (.92 | %) | 294 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 17.74 | 29.68 | % | $ | 63.6 | 1.49 | % | 1.15 | %‡ | (.88 | %) | 185 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 13.68 | 4.03 | % | $ | 75.4 | 1.50 | % | 1.15 | %‡ | (.89 | %) | 235 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 13.15 | (26.62 | %) | $ | 144.1 | 1.48 | % | 1.30 | %‡ | (.89 | %) | 292 | % | |||||||||||||||||
8/31/2008 | $ | — | $ | 17.92 | (6.42 | %) | $ | 239.9 | 1.42 | % | 1.29 | %‡ | (.93 | %) | 185 | % |
242
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 19.32 | $ | (0.22 | ) | $ | 2.09 | $ | 1.87 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
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 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Advisor Class | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 12.81 | $ | (0.17 | ) | $ | 1.39 | $ | 1.22 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
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 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 17.88 | $ | (0.11 | ) | $ | 1.94 | $ | 1.83 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 19.36 | $ | (0.19 | ) | $ | 2.10 | $ | 1.91 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
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 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 12.69 | $ | (0.23 | ) | $ | 1.37 | $ | 1.14 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
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 | $ | — | $ | — | $ | — | $ | — | $ | — |
See Notes to Financial Highlights
243
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 | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 21.19 | 9.68 | % | $ | 15.8 | 1.77 | % | 1.39 | %‡ | (1.10 | %) | 294 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 19.32 | 29.40 | % | $ | 19.3 | 1.67 | % | 1.37 | %‡ | (1.10 | %) | 185 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 14.93 | 3.47 | % | $ | 22.0 | 1.70 | % | 1.37 | %‡ | (1.11 | %) | 235 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 14.43 | (26.64 | %) | $ | 35.2 | 1.73 | % | 1.40 | %‡ | (1.00 | %) | 292 | % | |||||||||||||||||
8/31/2008 | $ | — | $ | 19.67 | (6.56 | %) | $ | 42.3 | 1.64 | % | 1.39 | %‡ | (1.04 | %) | 185 | % | |||||||||||||||||
Advisor Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 14.03 | 9.52 | % | $ | 5.9 | 1.87 | % | 1.58 | %‡ | (1.28 | %) | 294 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 12.81 | 29.13 | % | $ | 7.9 | 1.80 | % | 1.60 | %‡ | (1.33 | %) | 185 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 9.92 | 3.23 | % | $ | 9.7 | 1.90 | % | 1.60 | %‡ | (1.34 | %) | 235 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 9.61 | (26.81 | %) | $ | 11.7 | 1.99 | % | 1.60 | %‡ | (1.19 | %) | 292 | % | |||||||||||||||||
8/31/2008 | $ | — | $ | 13.13 | (6.75 | %) | $ | 13.6 | 1.96 | % | 1.59 | %‡ | (1.23 | %) | 185 | % | |||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 19.71 | 10.23 | % | $ | 33.3 | 1.33 | % | .90 | %‡ | (.58 | %) | 294 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 17.88 | 30.04 | % | $ | 103.0 | 1.26 | % | .90 | %‡ | (.63 | %) | 185 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 13.75 | 3.93 | % | $ | 82.6 | 1.28 | % | .91 | %‡ | (.63 | %) | 235 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 13.23 | (26.30 | %) | $ | 7.5 | 1.69 | % | .90 | %‡ | (.48 | %) | 292 | % | |||||||||||||||||
Period from 4/1/2008^ to 8/31/2008 | $ | — | $ | 17.95 | 1.76 | %** | $ | 4.3 | 1.10 | %* | .90 | %‡* | (.55 | %)* | 185 | %Ø | |||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 21.27 | 9.87 | % | $ | 1.1 | 1.79 | % | 1.26 | %‡ | (.98 | %) | 294 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 19.36 | 29.50 | % | $ | 1.2 | 1.78 | % | 1.26 | %‡ | (1.01 | %) | 185 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 14.95 | 3.60 | % | $ | 0.5 | 2.05 | % | 1.26 | %‡ | (1.01 | %) | 235 | % | |||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | — | $ | 14.43 | 11.17 | %** | $ | 0.1 | 5.34 | %* | 1.26 | %‡* | (.76 | %)* | 292 | %Ø | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 13.83 | 8.98 | % | $ | 0.7 | 2.57 | % | 2.01 | %‡ | (1.73 | %) | 294 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 12.69 | 28.57 | % | $ | 0.3 | 2.52 | % | 2.01 | %‡ | (1.72 | %) | 185 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 9.87 | 2.81 | % | $ | 0.1 | 3.43 | % | 2.01 | %‡ | (1.76 | %) | 235 | % | |||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | — | $ | 9.60 | 10.98 | %** | $ | 0.1 | 6.65 | %* | 2.01 | %‡* | (1.47 | %)* | 292 | %Ø |
244
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 12.83 | $ | (0.17 | ) | $ | 1.40 | $ | 1.23 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 24.61 | $ | 0.22 | $ | 1.77 | $ | 1.99 | $ | (0.12 | ) | $ | — | $ | — | $ | (0.12 | ) | $ | — | |||||||||||||||||
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 | ) | $ | — | ||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 16.85 | $ | 0.11 | $ | 1.21 | $ | 1.32 | $ | (0.10 | ) | $ | — | $ | — | $ | (0.10 | ) | $ | — | |||||||||||||||||
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 | ) | $ | — | ||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 24.64 | $ | 0.26 | $ | 1.77 | $ | 2.03 | $ | (0.16 | ) | $ | — | $ | — | $ | (0.16 | ) | $ | — | |||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 16.77 | $ | 0.10 | $ | 1.21 | $ | 1.31 | $ | (0.13 | ) | $ | — | $ | — | $ | (0.13 | ) | $ | — | |||||||||||||||||
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
245
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 | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 14.06 | 9.59 | % | $ | 0.2 | 2.12 | % | 1.51 | %‡ | (1.23 | %) | 294 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 12.83 | 29.20 | % | $ | 0.1 | 2.05 | % | 1.51 | %‡ | (1.24 | %) | 185 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 9.93 | 3.33 | % | $ | 0.1 | 4.16 | % | 1.51 | %‡ | (1.25 | %) | 235 | % | |||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | — | $ | 9.61 | 11.10 | %** | $ | 0.1 | 6.29 | %* | 1.52 | %‡* | (.97 | %)* | 292 | %Ø | |||||||||||||||||
Socially Responsive Fund | |||||||||||||||||||||||||||||||||
Investor Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 26.48 | 8.13 | % | $ | 724.3 | .89 | % | .89 | %‡ | .86 | % | 28 | % | |||||||||||||||||
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 | .89 | % | .89 | %‡ | .57 | % | 35 | % | |||||||||||||||||
Trust Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 18.07 | 7.93 | % | $ | 488.5 | 1.06 | % | 1.06 | %‡ | .66 | % | 28 | % | |||||||||||||||||
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 | 1.08 | % | 1.08 | %‡ | .38 | % | 35 | % | |||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 26.51 | 8.32 | % | $ | 512.4 | .71 | % | .71 | %‡ | 1.02 | % | 28 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 24.64 | 19.98 | % | $ | 417.7 | .74 | % | .74 | %‡§ | .82 | % | 20 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 20.60 | 10.36 | % | $ | 166.9 | .77 | % | .75 | %‡ | .49 | % | 41 | % | |||||||||||||||||
8/31/2009 | $ | — | $ | 18.75 | (21.71 | %) | $ | 77.6 | .78 | % | .75 | %‡ | .70 | % | 36 | % | |||||||||||||||||
Period from 11/28/2007^ to 8/31/2008 | $ | — | $ | 24.53 | (5.47 | %)** | $ | 71.8 | .76 | %* | .74 | %‡* | .83 | %* | 35 | %Ø | |||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 17.95 | 7.89 | % | $ | 83.1 | 1.11 | % | 1.11 | %‡§ | .61 | % | 28 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 16.77 | 19.54 | % | $ | 75.9 | 1.14 | % | 1.11 | %‡ | .42 | % | 20 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 14.08 | 10.03 | % | $ | 12.4 | 1.21 | % | 1.11 | %‡ | .18 | % | 41 | % | |||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | — | $ | 12.88 | 7.33 | %** | $ | 1.1 | 1.70 | %* | 1.11 | %‡* | .11 | %* | 36 | %Ø |
246
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 16.52 | $ | (0.02 | ) | $ | 1.19 | $ | 1.17 | $ | (0.05 | ) | $ | — | $ | — | $ | (0.05 | ) | $ | — | ||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 16.68 | $ | 0.07 | $ | 1.19 | $ | 1.26 | $ | (0.13 | ) | $ | — | $ | — | $ | (0.13 | ) | $ | — | |||||||||||||||||
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 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Value Fund | |||||||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 9.95 | $ | 0.15 | $ | 1.16 | $ | 1.31 | $ | (0.08 | ) | $ | — | $ | — | $ | (0.08 | ) | $ | — | |||||||||||||||||
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 | ) | $ | — | ||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 9.93 | $ | 0.12 | $ | 1.15 | $ | 1.27 | $ | (0.07 | ) | $ | — | $ | — | $ | (0.07 | ) | $ | — | |||||||||||||||||
Period from 3/2/2011^ to 8/31/2011 | $ | 10.28 | $ | 0.06 | $ | (0.41 | ) | $ | (0.35 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||
8/31/2012 | $ | 9.89 | $ | 0.03 | $ | 1.16 | $ | 1.19 | $ | (0.03 | ) | $ | — | $ | — | $ | (0.03 | ) | $ | — | |||||||||||||||||
Period from 3/2/2011^ to 8/31/2011 | $ | 10.28 | $ | 0.01 | $ | (0.40 | ) | $ | (0.39 | ) | $ | — | $ | — | $ | — | $ | — | $ | — |
See Notes to Financial Highlights
247
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 | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 17.64 | 7.08 | % | $ | 16.7 | 1.87 | % | 1.86 | %‡ | (.12 | %) | 28 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 16.52 | 18.63 | % | $ | 12.9 | 1.89 | % | 1.86 | %‡ | (.35 | %) | 20 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 13.94 | 9.10 | % | $ | 3.3 | 1.99 | % | 1.86 | %‡ | (.57 | %) | 41 | % | |||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | — | $ | 12.86 | 7.17 | %** | $ | 0.1 | 6.17 | %* | 1.86 | %‡* | (.40 | %)* | 36 | %Ø | |||||||||||||||||
Class R3 | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 17.81 | 7.65 | % | $ | 17.9 | 1.33 | % | 1.33 | %‡§ | .43 | % | 28 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 16.68 | 19.20 | % | $ | 9.7 | 1.36 | % | 1.36 | %‡§ | .08 | % | 20 | % | |||||||||||||||||
8/31/2010 | $ | — | $ | 14.05 | 9.74 | % | $ | 0.2 | 2.95 | % | 1.36 | %‡ | (.11 | %) | 41 | % | |||||||||||||||||
Period from 5/27/2009^ to 8/31/2009 | $ | — | $ | 12.87 | 7.25 | %** | $ | 0.1 | 5.76 | %* | 1.36 | %‡* | .12 | %* | 36 | %Ø | |||||||||||||||||
Value Fund | |||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 11.18 | 13.25 | % | $ | 2.7 | 9.42 | % | .73 | %‡ | 1.46 | % | 200 | % | |||||||||||||||||
8/31/2011 | $ | — | $ | 9.95 | 20.87 | % | $ | 2.6 | 18.35 | % | .75 | %‡ | 1.28 | % | 191 | % | |||||||||||||||||
8/31/2010‡‡‡‡ | $ | — | $ | 8.30 | (.71 | %)††††† | $ | 1.2 | 15.47 | % | .92 | %‡ | .93 | % | 52 | % | |||||||||||||||||
8/31/2009‡‡‡‡ | $ | — | $ | 8.57 | (13.01 | %)††††† | $ | 1.2 | 15.05 | % | 1.03 | %‡ | 2.39 | % | 94 | % | |||||||||||||||||
8/31/2008‡‡‡‡ | $ | — | $ | 10.04 | (3.68 | %)††††† | $ | 4.8 | 2.58 | % | 1.01 | %‡ | 2.24 | % | 53 | % | |||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 11.13 | 12.89 | % | $ | 1.6 | 9.88 | % | 1.08 | %‡ | 1.08 | % | 200 | % | |||||||||||||||||
Period from 3/2/2011^ to 8/31/2011 | $ | — | $ | 9.93 | (3.40 | %)** | $ | 0.3 | 17.08 | %* | 1.12 | %‡* | 1.22 | %* | 191 | %Ø | |||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
8/31/2012 | $ | — | $ | 11.05 | 12.07 | % | $ | 0.1 | 10.74 | % | 1.87 | %‡ | .30 | % | 200 | % | |||||||||||||||||
Period from 3/2/2011^ to 8/31/2011 | $ | — | $ | 9.89 | (3.79 | %)** | $ | 0.0 | 26.31 | %* | 1.86 | %‡* | .26 | %* | 191 | %Ø |
248
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 indicate future results. Current returns may be lower or higher than the performance data quoted. Investment returns and principal may fluctuate and shares when redeemed may be worth more or less than original cost. 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. Except for Mid Cap Intrinsic Value, no Fund's total returns were impacted by class action proceeds as listed in Note A-4 to the Financial Statements. Had Mid Cap Intrinsic Value not received the class actions proceeds, total return based on per share NAV for the year ended August 31, 2012 would have been 12.48%, 12.34%, 12.86% and 12.16% for Investor Class, Trust Class, Institutional Class and Class R3, respectively. |
b | On August 30, 2011, Management made a voluntary contribution to International 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, 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, 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. |
# | Represents the annualized ratios of net expenses to average daily net assets if Management had not reimbursed certain expenses and/or waived a portion of the investment management fee. |
249
Notes to Financial Highlights (cont'd)
‡ | After reimbursement of expenses and/or waiver of a portion of the investment management fee by Management. The Fund is required to calculate an expense ratio without taking into consideration any expense reductions related to expense offset arrangements. Had the Fund not received expense reductions related to expense offset arrangements, the annualized ratios of net expenses to average daily net assets would have been: |
Year Ended August 31, | |||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||
Emerging Markets Equity Fund Institutional Class | 1.25 | % | 1.26 | % | 1.26 | % | 1.28 | %(9) | — | ||||||||||||
Emerging Markets Equity Fund Class A | 1.50 | % | 1.50 | % | 1.51 | % | 1.53 | %(9) | — | ||||||||||||
Emerging Markets Equity Fund Class C | 2.25 | % | 2.26 | % | 2.26 | % | 2.28 | %(9) | — | ||||||||||||
Emerging Markets Equity Fund Class R3 | 1.92 | % | 1.91 | % | 1.93 | %(2) | — | — | |||||||||||||
Equity Income Fund Institutional Class | .71 | % | .80 | % | .80 | % | .80 | % | .97 | %(8) | |||||||||||
Equity Income Fund Class A | 1.13 | % | 1.16 | % | 1.16 | % | 1.16 | % | 1.17 | %(13) | |||||||||||
Equity Income Fund Class C | 1.84 | % | 1.91 | % | 1.91 | % | 1.91 | % | 1.92 | %(13) | |||||||||||
Equity Income Fund Class R3 | 1.41 | % | 1.41 | % | 1.41 | %(2) | — | — | |||||||||||||
Focus Fund Investor Class | .97 | % | .97 | % | .97 | % | .99 | % | .89 | % | |||||||||||
Focus Fund Trust Class | 1.16 | % | 1.16 | % | 1.19 | % | 1.24 | % | 1.11 | % | |||||||||||
Focus Fund Advisor Class | 1.31 | % | 1.32 | % | 1.42 | % | 1.50 | % | 1.34 | % | |||||||||||
Focus Fund Institutional Class | .75 | % | .75 | % | .75 | %(2) | — | — | |||||||||||||
Focus Fund Class A | 1.11 | % | 1.11 | % | 1.11 | %(2) | — | — | |||||||||||||
Focus Fund Class C | 1.86 | % | 1.86 | % | 1.86 | %(2) | — | — | |||||||||||||
Genesis Fund Investor Class | 1.03 | % | 1.05 | % | 1.06 | % | 1.08 | % | 1.03 | % | |||||||||||
Genesis Fund Trust Class | 1.11 | % | 1.13 | % | 1.12 | % | 1.12 | % | 1.09 | % | |||||||||||
Genesis Fund Advisor Class | 1.38 | % | 1.40 | % | 1.38 | % | 1.38 | % | 1.35 | % | |||||||||||
Genesis Fund Institutional Class | .85 | % | .87 | % | .85 | % | .85 | % | .84 | % | |||||||||||
Global Equity Fund Institutional Class | 1.15 | % | 1.15 | %(17) | — | — | — | ||||||||||||||
Global Equity Fund Class A | 1.51 | % | 1.51 | %(17) | — | — | — | ||||||||||||||
Global Equity Fund Class C | 2.26 | % | 2.26 | %(17) | — | — | — | ||||||||||||||
Global Thematic Opportunities Fund Institutional Class | 1.25 | % | 1.25 | %(17) | — | — | — | ||||||||||||||
Global Thematic Opportunities Fund Class A | 1.61 | % | 1.61 | %(17) | — | — | — | ||||||||||||||
Global Thematic Opportunities Fund Class C | 2.36 | % | 2.36 | %(17) | — | — | — | ||||||||||||||
Guardian Fund Investor Class | .92 | % | .92 | % | .95 | % | .97 | % | .89 | % | |||||||||||
Guardian Fund Trust Class | 1.09 | % | 1.09 | % | 1.12 | % | 1.14 | % | 1.07 | % | |||||||||||
Guardian Fund Advisor Class | 1.50 | % | 1.50 | % | 1.50 | % | 1.50 | % | 1.50 | % | |||||||||||
Guardian Fund Institutional Class | .74 | % | .75 | % | .75 | % | .75 | %(11) | — | ||||||||||||
Guardian Fund Class A | 1.11 | % | 1.11 | % | 1.11 | % | 1.11 | %(11) | — | ||||||||||||
Guardian Fund Class C | 1.86 | % | 1.86 | % | 1.86 | % | 1.86 | %(11) | — | ||||||||||||
Guardian Fund Class R3 | 1.36 | % | 1.36 | % | 1.36 | % | 1.36 | %(11) | — | ||||||||||||
International Fund Investor Class | 1.73 | % | 1.45 | % | 1.40 | % | 1.40 | % | 1.26 | % | |||||||||||
International Fund Trust Class | 1.89 | % | 1.69 | % | 1.52 | % | 1.49 | % | 1.36 | % | |||||||||||
International Fund Class A | 1.79 | % | 1.69 | %(6)(a) | — | — | — | ||||||||||||||
International Fund Class C | 2.61 | % | 2.33 | %(6)(a) | — | — | — | ||||||||||||||
International Institutional Fund Institutional Class | .84 | % | .80 | % | .80 | % | .81 | % | .81 | % | |||||||||||
International Large Cap Fund Trust Class | 1.25 | % | 1.25 | % | 1.25 | % | 1.27 | % | 1.28 | % | |||||||||||
International Large Cap Fund Institutional Class | .90 | % | .90 | % | .90 | % | .92 | % | .93 | % |
250
Notes to Financial Highlights (cont'd)
Year Ended August 31, | |||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||
International Large Cap Fund Class A | 1.24 | % | �� | 1.24 | % | 1.24 | % | 1.29 | % | 1.34 | %(3) | ||||||||||
International Large Cap Fund Class C | 2.00 | % | 2.00 | % | 2.01 | % | 2.01 | % | 2.04 | %(3) | |||||||||||
International Large Cap Fund Class R3 | 1.51 | % | 1.51 | % | 1.51 | % | 1.52 | %(11) | — | ||||||||||||
Intrinsic Value Fund Institutional Class | 1.00 | % | 1.00 | % | 1.00 | %(15) | — | — | |||||||||||||
Intrinsic Value Fund Class A | 1.36 | % | 1.36 | % | 1.36 | %(15) | — | — | |||||||||||||
Intrinsic Value Fund Class C | 2.11 | % | 2.11 | % | 2.11 | %(15) | — | — | |||||||||||||
Large Cap Disciplined Growth Fund Investor Class | 1.11 | % | 1.11 | % | 1.11 | % | 1.34 | % | 1.51 | % | |||||||||||
Large Cap Disciplined Growth Fund Institutional Class | .75 | % | .75 | % | .75 | % | .75 | %(10) | — | ||||||||||||
Large Cap Disciplined Growth Fund Class A | 1.11 | % | 1.11 | % | 1.11 | % | 1.11 | %(10) | — | ||||||||||||
Large Cap Disciplined Growth Fund Class C | 1.86 | % | 1.86 | % | 1.86 | % | 1.86 | %(10) | — | ||||||||||||
Large Cap Disciplined Growth Fund Class R3 | 1.36 | % | 1.36 | % | 1.36 | % | 1.36 | %(11) | — | ||||||||||||
Large Cap Value Fund Investor Class | .87 | % | .85 | % | .85 | % | .89 | % | .81 | % | |||||||||||
Large Cap Value Fund Trust Class | 1.05 | % | 1.04 | % | 1.03 | % | 1.04 | % | .99 | % | |||||||||||
Large Cap Value Fund Advisor Class | 1.20 | % | 1.19 | % | 1.18 | % | 1.20 | % | 1.15 | % | |||||||||||
Large Cap Value Fund Institutional Class | .70 | % | .69 | % | .69 | % | .70 | % | .66 | % | |||||||||||
Large Cap Value Fund Class A | 1.07 | % | 1.11 | % | 1.11 | %(2) | — | — | |||||||||||||
Large Cap Value Fund Class C | 1.86 | % | 1.86 | % | 1.86 | %(2) | — | — | |||||||||||||
Large Cap Value Fund Class R3 | 1.36 | % | 1.36 | % | 1.36 | %(2) | — | — | |||||||||||||
Mid Cap Growth Fund Investor Class | 1.01 | % | 1.02 | % | 1.07 | % | 1.11 | % | 1.01 | % | |||||||||||
Mid Cap Growth Fund Trust Class | 1.05 | % | 1.07 | % | 1.14 | % | 1.26 | % | 1.25 | % | |||||||||||
Mid Cap Growth Fund Advisor Class | 1.44 | % | 1.50 | % | 1.50 | % | 1.50 | % | 1.50 | % | |||||||||||
Mid Cap Growth Fund Institutional Class | .75 | % | .75 | % | .75 | % | .75 | % | .75 | % | |||||||||||
Mid Cap Growth Fund Class A | 1.11 | % | 1.11 | % | 1.11 | % | 1.11 | %(11) | — | ||||||||||||
Mid Cap Growth Fund Class C | 1.86 | % | 1.86 | % | 1.86 | % | 1.86 | %(11) | — | ||||||||||||
Mid Cap Growth Fund Class R3 | 1.36 | % | 1.36 | % | 1.36 | % | 1.36 | %(11) | — | ||||||||||||
Mid Cap Intrinsic Value Fund Investor Class | 1.18 | % | 1.22 | % | 1.22 | % | 1.36 | % | 1.13 | % | |||||||||||
Mid Cap Intrinsic Value Fund Trust Class | 1.25 | % | 1.26 | % | 1.25 | % | 1.25 | % | 1.26 | % | |||||||||||
Mid Cap Intrinsic Value Fund Institutional Class | .85 | % | .86 | % | .85 | %(14) | — | — | |||||||||||||
Mid Cap Intrinsic Value Fund Class A | 1.21 | % | 1.22 | % | 1.21 | %(2) | — | — | |||||||||||||
Mid Cap Intrinsic Value Fund Class C | 1.96 | % | 1.97 | % | 1.96 | %(2) | — | — | |||||||||||||
Mid Cap Intrinsic Value Fund Class R3 | 1.46 | % | 1.47 | % | 1.46 | %(2) | — | — | |||||||||||||
Real Estate Fund Trust Class | 1.03 | % | .99 | % | .99 | % | .99 | % | 1.00 | % | |||||||||||
Real Estate Fund Institutional Class | .85 | % | .85 | % | .85 | % | .85 | % | .87 | %(7) | |||||||||||
Real Estate Fund Class A | 1.21 | % | 1.21 | % | 1.21 | %(2) | — | — | |||||||||||||
Real Estate Fund Class C | 1.96 | % | 1.96 | % | 1.96 | %(2) | — | — | |||||||||||||
Real Estate Fund Class R3 | 1.46 | % | 1.46 | % | 1.46 | %(2) | — | — | |||||||||||||
Select Equities Fund Institutional Class | .75 | % | .75 | % | .75 | % | .75 | % | .76 | %(3) | |||||||||||
Select Equities Fund Class A | 1.20 | % | 1.20 | % | 1.20 | % | 1.20 | % | 1.24 | %(3) | |||||||||||
Select Equities Fund Class C | 1.95 | % | 1.95 | % | 1.95 | % | 1.95 | % | 1.99 | %(3) | |||||||||||
Small Cap Growth Fund Investor Class | 1.21 | % | 1.15 | % | 1.15 | % | 1.30 | % | 1.31 | % | |||||||||||
Small Cap Growth Fund Trust Class | 1.39 | % | 1.37 | % | 1.37 | % | 1.40 | % | 1.41 | % | |||||||||||
Small Cap Growth Fund Advisor Class | 1.58 | % | 1.60 | % | 1.60 | % | 1.60 | % | 1.61 | % |
251
Notes to Financial Highlights (cont'd)
Year Ended August 31, | |||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||
Small Cap Growth Fund Institutional Class | .90 | % | .90 | % | .91 | % | .90 | % | .91 | %(5) | |||||||||||
Small Cap Growth Fund Class A | 1.26 | % | 1.26 | % | 1.26 | % | 1.26 | %(11) | — | ||||||||||||
Small Cap Growth Fund Class C | 2.01 | % | 2.01 | % | 2.01 | % | 2.01 | %(11) | — | ||||||||||||
Small Cap Growth Fund Class R3 | 1.51 | % | 1.51 | % | 1.51 | % | 1.52 | %(11) | — | ||||||||||||
Socially Responsive Fund Investor Class | .89 | % | .90 | % | .94 | % | .93 | % | .90 | % | |||||||||||
Socially Responsive Fund Trust Class | 1.06 | % | 1.08 | % | 1.12 | % | 1.13 | % | 1.09 | % | |||||||||||
Socially Responsive Fund Institutional Class | .71 | % | .74 | % | .75 | % | .75 | % | .75 | %(4) | |||||||||||
Socially Responsive Fund Class A | 1.11 | % | 1.11 | % | 1.11 | % | 1.11 | %(11) | — | ||||||||||||
Socially Responsive Fund Class C | 1.86 | % | 1.86 | % | 1.86 | % | 1.86 | %(11) | — | ||||||||||||
Socially Responsive Fund Class R3 | 1.33 | % | 1.36 | % | 1.36 | % | 1.36 | %(11) | — | ||||||||||||
Value Fund Institutional Class | .73 | % | .75 | %(12) | .92 | %(1)(12) | 1.03 | %(12) | 1.01 | %(12) | |||||||||||
Value Fund Class A | 1.08 | % | 1.12 | %(16) | — | — | — | ||||||||||||||
Value Fund Class C | 1.87 | % | 1.86 | %(16) | — | — | — |
(1) | On April 19, 2010, 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. | |
(2) | Period from June 21, 2010 to August 31, 2010. | |
(3) | Period from December 20, 2007 to August 31, 2008. | |
(4) | Period from November 28, 2007 to August 31, 2008. | |
(5) | Period from April 1, 2008 to August 31, 2008. | |
(6) | Period from December 20, 2010 to August 31, 2011. | |
(7) | Period from June 4, 2008 to August 31, 2008. | |
(8) | 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. | |
(9) | 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. | |
(10) | Period from April 6, 2009 to August 31, 2009. | |
(11) | Period from May 27, 2009 to August 31, 2009. | |
(12) | These ratios reflect a reduced fee schedule for certain expenses. If these expenses had not been reduced, the ratios would have been higher. | |
(13) | Period from June 9, 2008 to August 31, 2008. | |
(14) | Period from March 8, 2010 to August 31, 2010. | |
(15) | 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. | |
(16) | Period from March 2, 2011 to August 31, 2011. | |
(17) | 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. |
252
Notes to Financial Highlights (cont'd)
a | For Class A and Class C for the period ended August 31, 2011, additional legal fees, which are a non-recurring expense, are included in ratios on a nonannualized basis. (See Note G of Notes to Financial Statements). |
^^ | After utilization of the Line of Credit by Multi-Cap Opportunities and/or reimbursement of expenses and/or waiver of a portion of the investment management fee by Management. The Fund is required to calculate an expense ratio without taking into consideration any expense reductions related to expense offset arrangements. Had the Fund not received expense reductions related to expense offset arrangements, and had a Fund not utilized the Line of Credit or had Management not undertaken such action, the annualized ratios of net expenses to average daily net assets would have been: |
Year Ended August 31, | |||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||
Multi-Cap Opportunities Fund Institutional Class | 1.00 | % | 1.01 | % | 1.00 | %(1) | 1.02 | %(3) | 1.01 | %(3) | |||||||||||
Multi-Cap Opportunities Fund Class A | 1.36 | % | 1.37 | % | 1.36 | %(2) | — | — | |||||||||||||
Multi-Cap Opportunities Fund Class C | 2.11 | % | 2.12 | % | 2.12 | %(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) | 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 action, the annualized ratios of net expenses to average daily net assets would have been: |
Year Ended August 31, | |||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||
Equity Income Fund Institutional Class | .70 | % | .76 | % | — | — | — | ||||||||||||||
Equity Income Fund Class A | 1.07 | % | 1.16 | % | — | — | — | ||||||||||||||
Equity Income Fund Class C | 1.82 | % | 1.90 | % | — | — | — | ||||||||||||||
Equity Income Fund Class R3 | 1.35 | % | — | — | — | — | |||||||||||||||
Focus Fund Advisor Class | — | — | 1.39 | % | — | — | |||||||||||||||
Guardian Fund Advisor Class | 1.33 | % | 1.35 | % | — | — | — | ||||||||||||||
Guardian Fund Institutional Class | .74 | % | .74 | % | — | — | — | ||||||||||||||
Large Cap Disciplined Growth Fund Investor Class | 1.03 | % | 1.08 | % | — | — | — | ||||||||||||||
Large Cap Value Fund Institutional Class | — | — | .68 | % | — | — | |||||||||||||||
Large Cap Value Fund Class A | 1.05 | % | — | — | — | — | |||||||||||||||
Mid Cap Growth Fund Advisor Class | 1.31 | % | 1.34 | % | 1.48 | % | — | — | |||||||||||||
Multi-Cap Opportunities Fund Institutional Class | .93 | % | — | — | — | — | |||||||||||||||
Multi-Cap Opportunities Fund Class A | 1.30 | % | — | — | — | — | |||||||||||||||
Socially Responsive Fund Institutional Class | — | .72 | % | — | — | — | |||||||||||||||
Socially Responsive Fund Class A | 1.11 | % | — | — | — | — | |||||||||||||||
Socially Responsive Fund Class R3 | 1.32 | % | 1.35 | % | — | — | — |
253
Notes to Financial Highlights (cont'd)
^ | 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. |
Ø | Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated 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, Large Cap Value, Mid Cap Intrinsic Value, Multi-Cap Opportunities, and Real Estate, and for the year ended August 31, 2011 for International and 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. |
254
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 Real Estate Fund,
Neuberger Berman Select Equities Fund,
Neuberger Berman Value Fund
We have audited the accompanying statements of assets and liabilities 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 (formerly, Neuberger Berman Partners Fund), Neuberger Berman Real Estate Fund, Neuberger Berman Select Equities Fund and Neuberger Berman Value Fund (formerly, Neuberger Berman Large Cap Value Fund), fourteen of the series constituting Neuberger Berman Equity Funds (the "Trust"), including the schedules of investments, as of August 31, 2012, and the related statements of operations for the year then ended, 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, 2012, 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 Neuberger Berman Equity Funds as of August 31, 2012, 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 17, 2012
255
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 Mid Cap Intrinsic Value Fund (formerly Regency Fund), Neuberger Berman Small Cap Growth Fund, Neuberger Berman Socially Responsive Fund, and Neuberger Berman Multi-Cap Opportunities Fund (formerly Research Opportunities Fund), and, each a series of the Neuberger Berman Equity Funds (the "Trust"), including the schedules of investments, as of August 31, 2012, 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, 2012, 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, 2012, 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 16, 2012
256
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 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 |
257
Trustee and Officer Information
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 | |||||||||||
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. | 49 | Formerly, Director, 1997 to 2003, and Advisory Director, 2003 to 2006; ABA Retirement Funds (formerly, American Bar Retirement Association) (not-for-profit membership corporation). | |||||||
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 investments in the healthcare sector), since 2003; formerly, Consultant, Resources Connection (temporary staffing), 2002 to 2006. | 49 | Director, American Water (water utility), since 2003; Director, Channel Reinsurance (financial guaranty reinsurance), 2006 to 2010; 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. |
258
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) | |||||||
C. Anne Harvey (1937) | Trustee since 2000 | President, C.A. Harvey Associates, since October 2001; formerly, Director, AARP, 1978 to December 2001. | 49 | 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. | |||||||
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. | 49 | 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. | 49 | Formerly, Director, Webfinancial Corporation (holding company), 2002 to 2008; formerly, Director, WHX Corporation (holding company), 2002 to 2005; formerly, Director, State Theatre of New Jersey (not-for-profit theatre), 2000 to 2005. | |||||||
George W. Morriss (1947) | Trustee since 2007 | Adjunct Faculty Member, Columbia University School of International Policy and Administration, since October 2012; formerly, Executive Vice President and Chief Financial Officer, People's Bank, Connecticut (a financial services company), 1991 to 2001. | 49 | Formerly, Manager, Larch Lane Multi-Strategy Fund complex (which consisted of three funds), 2006 to 2011; formerly, Member, NASDAQ Issuers' Affairs Committee, 1995 to 2003. |
259
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 from 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. | 49 | 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. | |||||||
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. | 49 | Director, H&R Block, Inc. (financial services company), since May 2001; Chairman, Governance and Nominating Committee, H&R Block, Inc., since 2011; formerly, Chairman, Compensation Committee, H&R Block, Inc., 2006 to 2010; formerly, Director, Forward Management, Inc. (asset management company), 1999 to 2006. |
260
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. | 49 | 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. | 49 | None. |
261
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. | 49 | 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. |
262
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 Conti* (1956) | Chief Executive Officer, President and Trustee since 2008; prior thereto, Executive Vice President in 2008 and Vice President from 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; Managing Director, NBFI, since 2009. | 49 | Director, Staten Island Mental Health Society, since 1994; formerly, Chairman of the Board, Staten Island Mental Health Society, 2008 to 2011. |
(1) | The business address of each listed person is 605 Third Avenue, New York, New York 10158. |
(2) | Pursuant to the Trust's Trust Instrument, each of these Fund Trustees shall hold office for life or until his or her successor is elected or the Trust terminates; except that (a) any Fund Trustee may resign by delivering a written resignation; (b) any Fund Trustee may be removed with or without cause at any time by a written instrument signed by at least two-thirds of the other Fund Trustees; (c) any Fund Trustee who requests to be retired, or who has become unable to serve, may be retired by a written instrument signed by a majority of the other Fund Trustees; and (d) any Fund Trustee may be removed at any shareholder meeting by a vote of at least two-thirds of the outstanding shares. |
(3) | Except as otherwise indicated, each individual has held the positions shown for at least the last five years. |
* | Indicates a Fund Trustee who is an "interested person" within the meaning of the 1940 Act. Mr. Amato and Mr. Conti are interested persons of the Trust by virtue of the fact that each is an officer of Management, Neuberger and/or their affiliates. |
263
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 (nine since 2011). | |||
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). |
264
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 |
265
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).
266
Notice to Shareholders
Equity Income Fund, Genesis Fund, Intrinsic Value Fund, Large Cap Disciplined Growth Fund, Mid Cap Growth Fund, Real Estate Fund and Select Equities Fund hereby designate $9,314,438, $295,331,935, $13,401,827, $29,359,244, $1,265,496, $1,924,275 and $2,544,641, respectively, as a capital gain distribution.
For the fiscal year ended August 31, 2012, 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 2012 will be reported in conjunction with Form 1099-DIV.
Fund | Qualified Dividend Income | ||||
Emerging Markets Equity Fund | $ | 3,217,181 | |||
Equity Income Fund | 74,809,170 | ||||
Focus Fund | 9,158,218 | ||||
Genesis Fund | 156,174,478 | ||||
Global Equity Fund | 70,066 | ||||
Global Thematic Opportunities Fund | 779,591 | ||||
Guardian Fund | 19,609,756 | ||||
International Fund | 7,572,330 | ||||
International Institutional Fund | 11,546,672 | ||||
International Large Cap Fund | 5,498,421 | ||||
Intrinsic Value Fund | 1,189,044 | ||||
Large Cap Disciplined Growth Fund | 8,018,023 | ||||
Large Cap Value Fund | 35,910,597 | ||||
Mid Cap Intrinsic Value Fund | 1,372,639 | ||||
Multi-Cap Opportunities Fund | 4,930,631 | ||||
Select Equities Fund | 640,596 | ||||
Socially Responsive Fund | 31,260,794 | ||||
Value Fund | 75,920 |
267
Report of Votes of Shareholders
A special meeting of shareholders of Neuberger Berman Real Estate Fund (the "Fund"), a series of Neuberger Berman Equity Funds, was held on June 19, 2012. Shareholders voted on the following matter:
Proposal—To change the Fund from a diversified fund to a non-diversified fund.
Votes For | Votes Against | Abstentions | Broker Non-Votes | Total | |||||||||||||||||
Number of shares | 16,700,500 | 1,521,387 | 836,963 | — | 19,058,850 |
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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 10/12 |
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, Real Estate, Select Equities and Value 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, Mid Cap Intrinsic Value, Multi-Cap Opportunities, 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 $609,775 and $656,875 for the fiscal years ended 2011 and 2012, 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 $135,625 and $138,250 for the fiscal years ended 2011 and 2012, 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 2011 and 2012, respectively. The Audit Committee approved 0% and 0% of these services provided by E&Y for the fiscal years ended 2011 and 2012, 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 2011 and 2012, respectively. The Audit Committee approved 0% and 0% of these services provided by E&Y for the fiscal years ended 2011 and 2012, 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 2011 and 2012, respectively. The Audit Committee approved 0% and 0% of these services provided by Tait Weller for the fiscal years ended 2011 and 2012, 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 2011 and 2012, respectively. The Audit Committee approved 0% and 0% of these services provided by Tait Weller for the fiscal years ended 2011 and 2012, 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 $147,750 and $173,750 for the fiscal years ended 2011 and 2012, respectively. The nature of the services provided includes preparation of the Federal and State tax extensions and tax returns, review of annual excise tax calculations, and preparation of form 8613, in addition to guidance with the identification of Passive Foreign Investment Companies ("PFICS"), assistance with determination of various foreign withholding taxes, and assistance with Internal Revenue Code and tax regulation requirements for fund investments. The Audit Committee approved 0% and 0% of these services provided by E&Y for the fiscal years ended 2011 and 2012, 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 2011 and 2012, respectively. The Audit Committee approved 0% and 0% of these services provided by E&Y for the fiscal years ended 2011 and 2012, 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 $22,750 and $22,750 for the fiscal years ended 2011 and 2012, respectively. The nature of the services provided includes preparation of the Federal and State tax extensions and tax returns, review of annual excise tax calculations, and preparation of form 8613, in addition to guidance with the identification of Passive Foreign Investment Companies ("PFICS"), assistance with determination of various foreign withholding taxes, and assistance with Internal Revenue Code and tax regulation requirements for fund investments.
The Audit Committee approved 0% and 0% of these services provided by Tait Weller for the fiscal years ended 2011 and 2012, 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 2011 and 2012, respectively. The Audit Committee approved 0% and 0% of these services provided by Tait Weller for the fiscal years ended 2011 and 2012, 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 2011 and 2012, respectively. The Audit Committee approved 0% and 0% of these services provided by E&Y for the fiscal years ended 2011 and 2012, 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 2011 and 2012, respectively. The Audit Committee approved 0% and 0% of these services provided by E&Y for the fiscal years ended 2011 and 2012, 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 2011 and 2012, respectively. The Audit Committee approved 0% and 0% of these services provided by Tait Weller for the fiscal years ended 2011 and 2012, 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 2011 and 2012, respectively. The Audit Committee approved 0% and 0% of these services provided by Tait Weller for the fiscal years ended 2011 and 2012, 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 $174,968 and $203,750 for the fiscal years ended 2011 and 2012, 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 2011 and 2012, respectively.
Non-audit fees billed by Tait Weller for services rendered to the Registrant were $22,750 and $22,750 for the fiscal years ended 2011 and 2012, 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 2011 and 2012, 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 February 29, 2012). |
(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: November 1, 2012
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: November 1, 2012
By: | /s/ John M. McGovern | |
John M. McGovern | ||
Treasurer and Principal Financial | ||
and Accounting Officer |
Date: November 1, 2012