As filed with the Securities and Exchange Commission on May 4, 2023
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 Registrant as specified in charter)
c/o Neuberger Berman Investment Advisers LLC
1290 Avenue of the Americas
New York, New York 10104-0002
(Address of Principal Executive Offices – Zip Code)
Joseph V. Amato
Chief Executive Officer and President
Neuberger Berman Equity Funds
c/o Neuberger Berman Investment Advisers LLC
1290 Avenue of the Americas
New York, New York 10104-0002
Lori L. Schneider, Esq.
K&L Gates LLP
1601 K Street, N.W.
Washington, D.C. 20006-1600
(Names and Addresses of agents for service)
Registrant's telephone number, including area code: (212) 476-8800
Date of fiscal year end: August 31
Date of reporting period: February 28, 2023
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, as amended (“Act”) (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 Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, 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.
| (a) | Following is a copy of the semi-annual report transmitted to shareholders pursuant to Rule 30e-1 under the Act. |
Neuberger Berman
Equity Funds
| |
| |
| |
Institutional Class Shares | |
| |
|
Emerging Markets Equity Fund |
|
|
|
|
Greater China Equity Fund |
International Equity Fund |
International Select Fund |
International Small Cap Fund |
|
|
|
|
Mid Cap Intrinsic Value Fund |
Multi-Cap Opportunities Fund |
|
|
|
|
Semi-Annual Report
February 28, 2023
The "Neuberger Berman" name and logo and "Neuberger Berman Investment Advisers LLC" name are registered service marks of Neuberger Berman Group LLC. The individual Fund names in this piece are either service marks or registered service marks of Neuberger Berman Investment Advisers LLC, an affiliate of Neuberger Berman BD LLC, distributor, member FINRA. ©2023 Neuberger Berman BD LLC, distributor. All rights reserved.
President’s Letter
Dear Shareholder,
Three interconnected factors continue dominating markets as global economies work through effects of the pandemic and war in Ukraine: inflation, interest rates, and concerns about a global slowdown or recession.
During the six-month period ended February 28, 2023 (the reporting period), as news appeared to improve, equity returns rebounded from 2022’s selloff. The fourth quarter’s rally, on hopeful October and November inflation data from the U.S. and Eurozone, continued into early 2023. Investors also cheered China’s economic re-opening and January’s U.S. unemployment rate, the lowest since 1969.
Since then, however, signals have been mixed. A variety of inflation measures remain stubbornly high, and U.S. Federal Reserve Board Chair Powell, reacting to January data, diminished hopes that rate hikes would end where or when analysts had hoped.
Because of inflation, growth in real disposable personal income dropped to -2.5%—from a pre-pandemic average of +3.2%—and consumers are losing ground. Approximately 70% of U.S. households now have difficulty meeting expenses.
Retailers have begun cautioning. Even as freight costs declined and supply chain snags are improving, consumer spending is a concern—especially among middle- and lower-income Americans, whose credit card debt is climbing. Meanwhile, data shows wealthy consumers continue spending on luxury items, ensuring inflation and its pressures on most Americans will remain present longer.
Persistent inflation has far-reaching effects. The "bottom" 80% of households contribute 60% of U.S. spending, so when they cut back, it impacts growth, earnings, employment, equity returns and bonus pay. Unsurprisingly, economic distress also tends to fuel crime; so from any perspective, America must work to slow inflation and narrow gaps between the rich and the majority.
Though the horizon is cloudy, positive economic data persists at least for now; for example, in February the economy added 311,000 new jobs (higher than expectations), and the labor participation rate—how many people in prime working years are working—returned to pre-pandemic levels. Wage growth has slowed, however. Corporate earnings remain above long-term trends—but recent earnings have been based on increased prices, not volumes.
We anticipate markets will remain choppy facing current unknowns. We remain focused on "knowns." In our view, we know that, over the longer term, equities have historically outperformed other asset classes, that market volatility creates opportunity, and that, with easy monetary policy (the rising tide lifting all boats) over, there may be greater differentiation between winners and losers within sectors.
The environment we foresee is a scenario that we believe provides stock pickers advantages. For at least the rest of this year, we anticipate earnings quality will be key, differentiating companies navigating or gaining advantage from those losing ground. Fundamental research, balance sheet and cash flows emphasis, deep dives into positioning and management, and strict buy and sell disciplines all help guide our managers toward longer-term opportunity and away from surprises.
In early March, events in the banking sector caused some volatility and investor concern. As was widely reported, Silicon Valley Bank (SVB) and Signature Bank (Signature) were placed in Federal Deposit Insurance Corporation (FDIC) receivership. In response, the U.S. Treasury, Federal Reserve and FDIC announced that the government would guarantee all deposits at the two banks. Soon after, Credit Suisse (CS) experienced substantial asset outflows amid concerns about its financial stability, which resulted in Swiss regulators’ approval of an acquisition of CS by UBS Group AG. Neuberger Berman Equity Funds had no direct exposure to SVB, Signature or CS shares.
We thank you for the confidence you have placed with us and look forward to serving you in the future.
Sincerely,
Joseph V. Amato
President and CEO
Neuberger Berman Equity Funds
Dividend Growth Fund Commentary (Unaudited)
Neuberger Berman Dividend Growth Fund Institutional Class generated a 5.52% total return for the six-month period ended February 28, 2023 (the reporting period), outperforming its benchmark, the S&P 500® Index (the Index), which posted a 1.26% total return for the same period. (Performance for all share classes is provided in the table immediately following this letter.)
The Fund seeks to provide gross current income in-line with the Index, while seeking capital appreciation driven by dividend per share growth. This approach seeks to identify companies with strong business models generating cash to both grow their business, while also providing rising dividend distributions to shareholders. Overall, we focus on companies that we believe have strong balance sheets, solid management teams, attractive free cash flow yields and clear capital allocation strategies.
During the reporting period, the stock market rose as investors grappled with volatility driven in-part by inflationary headwinds and tighter monetary policies. By early-2023, the U.S. Federal Reserve Board's (Fed) preferred inflation gauge, the Core Personal Consumption Expenditures index (PCE)1, which excludes food and energy costs, unexpectedly rose. In reaction, the central bank continued increasing the Fed Funds target rate, which rose by 2.25% during the reporting period as Fed Chair Jerome Powell emphasized price stability to tame inflationary pressures, bringing the Fed Funds target rate range to 4.50%–4.75%, while expressing additional rate hikes may be warranted.
The Fund’s top equity sector weights included approximately 27% Information Technology (IT), 13% Health Care, and 13% Financials at the end of the reporting period. Overall, the bulk of the Fund’s total returns were generated from stocks across Consumer Discretionary, IT and Financials—while exposure to Communication Services, Real Estate, and Utilities dampened results.
During the reporting period, our Consumer Discretionary holdings posted gains as the broader sector declined. Strong results generated outsized returns as the French luxury-goods conglomerate, Compagnie Financiere Richemont, was our top performer in this sector. Investors bid up this holding as enthusiasm surrounding China dropping their zero-COVID policy stoked optimism tied to reopening prospects, lending further support to risk sentiment. Our analysis suggests to us the owner of brands Buccellati, Cartier, and Van Cleef & Arpels (to name a few) remains well positioned to deliver dividend growth potential given its net cash position and free cash flow prospects.
We continue to favor a select cohort of Utilities that provide exposure to infrastructure modernization and tend to have long-term earnings visibility and dividend growth potential. Within this sector, Dominion Energy weighed on results after becoming embroiled in controversy related to their proposed $10 billion offshore Virginia wind farm. Following a top-to-bottom review, Dominion Energy was ultimately sold during the reporting period.
We believe caution is warranted as the U.S. economy grapples with greater uncertainty. Geopolitics, inflation, and central bank actions are likely to continue to present headwinds for corporate earnings. We remain focused on business fundamentals and portfolio construction to navigate potential volatility. As always, we will continue to favor what we believe are high-quality, cash-generative, dividend-paying stocks with managements focused on disciplined capital allocation.
We thank you for investing in our Fund.
Sincerely,
William D. Hunter and Shawn Trudeau
Portfolio Managers
1 Source: U.S. Bureau of Economic Analysis
Information about principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The portfolio composition, industries and holdings of the Fund are subject to change without notice.
The opinions expressed are those of the Fund’s portfolio managers. The opinions are as of the date of this report and are subject to change without notice.
Dividend Growth Fund (Unaudited)
|
(as a % of Total Investments*) |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| Derivatives (other than options purchased), if
any, are excluded from this chart. |
| | | |
| | Six Month
Period Ended
02/28/2023 | Average Annual Total Return
Ended 02/28/2023 |
| | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | |
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 current performance data, including current to the most recent month-end, please visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Investment Advisers LLC ("NBIA") 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 NBIA) 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 2022 were 1.05%, 1.48%, 2.17% and 1.25% for Institutional Class, Class A, Class C and Class R6 shares, respectively (before expense reimbursements and/or fee waivers, if any). The expense ratios were 0.70%, 1.06%, 1.81% and 0.60% for Institutional Class, Class A, Class C and Class R6 shares, respectively, after expense reimbursements and/or fee waivers. The expense ratios for the semi-annual period ended February 28, 2023, can be found in the Financial Highlights section of this report.
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 contingent deferred sales charge ("CDSC") for Class C shares. The CDSC for Class C shares is 1.00%, 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.
Emerging Markets Equity Fund Commentary (Unaudited)
Neuberger Berman Emerging Markets Equity Fund Institutional Class generated a total return of -3.38% for the six-month period ended February 28, 2023 (the reporting period), trailing its benchmark, the MSCI Emerging Markets (EM) Index (Net) (the Index), which reported a total return of -2.29% for the same period. (Performance for all share classes is provided in the table immediately following this letter.)
Emerging markets started off the reporting period falling on Chinese-specific economic risks in the local property market and extended COVID-19 shutdowns. But then, global equity markets rallied as sentiment improved during the fourth quarter of 2022 and into early 2023. Most important to EM investors were China’s economic re-opening and the U.S. Federal Reserve Board’s having potentially neared the end of its aggressive interest hike cycle. But the period ended with investors questioning both assumptions—and growing concerns of a global economic slowdown due to higher developed market interest rates—leading to negative returns for the reporting period.
Within the Index, the Materials, Information Technology (IT) and Consumer Staples sectors outperformed during the reporting period. Among declining sectors, Utilities fell significantly, followed by smaller drops in Energy and Consumer Discretionary. By country, Turkey, Greece and Mexico outperformed significantly in the Index; while Qatar, Saudi Arabia and India declined; the latter on a short-seller report on large infrastructure companies linked to the Adani Group in India.
The Fund’s stock selection detracted from relative results over the reporting period, in particular within IT, Real Estate and Financials. IT was impacted by small-cap names that were sold off on concerns of a global demand slowdown, while Financials was impacted by Indian bank holdings that were feared to have impactful exposure to the Adani Group. The Fund had no direct exposure to Adani, and we believe the Indian lenders in the portfolio were not meaningfully impacted. By country, holdings based in Brazil and China, and an overweight to India—which stumbled in January on above-mentioned Adani-related contagion fears—detracted.
Individual detractors included Chinese e-commerce players, JD.com, Inc. and Meituan, both of which declined after the former announced a subsidy program to compete against a local rival. The team is closely monitoring the competitive dynamic in the Chinese e-commerce space to determine how to position the portfolio going forward.
The Fund’s sector allocation was beneficial to relative performance, as was stock selection within Communication Services, Consumer Staples and Health Care. Stocks based in Korea, and an overweight to Hong Kong and underweight to Saudi Arabia versus the Index were additive.
Tencent Holdings Ltd. and Trip.com Group Ltd. were top contributors with both Chinese names bid-up on the hope that local economic re-opening would drive greater use of their respective services (e.g., travel for the latter).
Looking ahead, we continue employing our slow and steady bottom-up approach, trading at the margins where and when we believe there are opportunities.
The team is encouraged by China’s sustained pivot to supportive policies on economic re-opening and to having a consumer-led recovery. That, along with strong recent results across the Fund’s consumer holdings, keeps the team favoring consumer sectors at the expense of the cyclical industrials/bulk materials segments of the EM investment universe. Regionally, we favor continuing to trim our large Indian overweight to fund a variety of purchases across select geographies.
Our focus on fundamentals remains in place, especially given the early 2023 earnings season. We will use any insights gleaned from earnings updates to adjust the Fund’s positioning for the months and quarters ahead.
Sincerely,
Conrad Saldanha
Portfolio Manager
Information about principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The portfolio composition, industries and holdings of the Fund are subject to change without notice.
The opinions expressed are those of the Fund’s portfolio manager. The opinions are as of the date of this report and are subject to change without notice.
Emerging Markets Equity Fund (Unaudited)
| | | | |
| | Six Month
Period Ended
02/28/2023 | Average Annual Total Return
Ended 02/28/2023 |
| | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | |
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 current performance data, including current to the most recent month-end, please visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Investment Advisers LLC ("NBIA") 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 NBIA) 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 2022 were 1.23%, 1.59%, 2.34%, 1.95% and 1.12% for Institutional Class, Class A, Class C, Class R3 and Class R6 shares, respectively (before expense reimbursements and/or fee waivers, if any). The expense ratios were 1.51%, 2.26% and 1.92% for Class A, Class C and Class R3 shares, respectively, after expense reimbursements and/or fee waivers. The expense ratios for the semi-annual period ended February 28, 2023, can be found in the Financial Highlights section of this report.
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 contingent deferred sales charge ("CDSC") for Class C shares. The CDSC for Class C shares is 1.00%, 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.
Equity Income Fund Commentary (Unaudited)
Neuberger Berman Equity Income Fund Institutional Class generated a 0.27% total return for the six-month period ended February 28, 2023 (the reporting period), underperforming its benchmark, the Russell 1000® Value Index (the Index), which posted a 4.07% total return for the same period. (Performance for all share classes is provided in the table immediately following this letter.)
The Fund is an objective-based strategy, targeting a total return profile between stocks and bonds with limited volatility relative to the Index. Overall, the Fund is diversified among dividend-paying stocks selected through extensive analysis of cash flow prospects, that we believe have the ability to sustain and grow dividends.
During the reporting period, the stock market rose as investors grappled with volatility driven in-part by inflationary headwinds and tighter monetary policies. By early-2023, the U.S Federal Reserve Board’s (Fed) preferred inflation gauge, the Core Personal Consumption Expenditures index (PCE)1, which excludes food and energy costs, unexpectedly rose. In reaction, the central bank continued increasing the Fed Funds target rate, which rose by 2.25% during the reporting period as Fed Chair Jerome Powell emphasized price stability to tame inflationary pressures, bringing the Fed Funds target rate range to 4.50%–4.75%, while expressing additional rate hikes may be warranted.
The Fund’s top equity sector holdings included approximately 16% Industrials, 13% Health Care, and 13% Financials at the end of the reporting period. Overall, the bulk of the Fund’s total returns were generated from stocks across Industrials, Health Care, and Financials—while exposure to Information Technology, Energy, and Utilities dampened results.
Strong stock selection across Industrials generated the bulk of relative returns. The Fund maintains an overweight to Industrials as we believe the sector can benefit from infrastructure initiatives. Eaton Corp. PLC proved to be our top performer in this sector, advancing returns by more than 25%. This core holding represents an intelligent power management business that we believe can capitalize on infrastructure modernization underpinned by electrification and digitalization trends.
We continue to favor a select cohort of Utilities that provide exposure to infrastructure modernization and tend to have long-term earnings visibility and dividend growth potential. While we remain constructive on long-term prospects, NextEra Energy weighed on performance as positive results were overshadowed by unexpected management changes.
The Fund’s use of written options contributed positively to performance during the reporting period.
Despite a challenging macroeconomic backdrop, our analysis suggests stocks with dividend yields greater than 2.5% are priced close to their greatest discount relative to the broader market since the "Tech Boom" of the late 1990s. We believe investors can benefit from purchasing high quality dividend paying companies, which we believe are now at reasonable, even cheap, valuations. Specifically, we firmly believe our approach to equity income provides an attractive inflationary hedge, while providing reasonable current income and the chance for capital appreciation for risk-averse investors.
We thank you for investing in our Fund.
Sincerely,
Richard Levine and Sandy Pomeroy
Portfolio Managers
1 Source: U.S. Bureau of Economic Analysis
Information about principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The portfolio composition, industries and holdings of the Fund are subject to change without notice.
The opinions expressed are those of the Fund’s portfolio managers. The opinions are as of the date of this report and are subject to change without notice.
Equity Income Fund (Unaudited)
|
(as a % of Total Investments*) |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| Derivatives (other than options purchased), if any, are excluded from this chart. |
| | | | |
| | Six Month
Period Ended
02/28/2023 | Average Annual Total Return
Ended 02/28/2023 |
| | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Russell 1000® Value Index^1,2 | | | | | |
| | | | | |
*The performance data for the life of Fund 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. The performance data for Class E also includes the performance of the Fund's Institutional Class from June 9, 2008 through January 11, 2022. See endnote 5 for information about the effects of the different fees paid by each class.
^On April 1, 2022, the Fund began comparing its performance to the Russell 1000 Value Index rather than the S&P 500 Index because the Russell 1000 Value Index has characteristics that are more representative of the Fund’s investment strategy than its former index, the S&P 500 Index.
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 current performance data, including current to the most recent month-end, please visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Investment Advisers LLC ("NBIA") 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 NBIA) 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 2022 were 0.71%, 1.07%, 1.82%, 1.38% and 0.57% for Institutional Class, Class A, Class C, Class R3 and Class E shares, respectively (before expense reimbursements and/or fee waivers, if any). The expense ratio for fiscal year 2022 was 0.07% for Class E after expense reimbursements and/or fee waivers. The expense ratios for the semi-annual period ended February 28, 2023, can be found in the Financial Highlights section of this report.
Equity Income Fund (Unaudited)
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 contingent deferred sales charge ("CDSC") for Class C shares. The CDSC for Class C shares is 1.00%, 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.
Focus Fund Commentary (Unaudited)
Neuberger Berman Focus Fund Investor Class generated a 3.00% total return for the six-month period ended February 28, 2023 (the reporting period), underperforming the 3.32% total return of its benchmark, the MSCI All Country World Index (Net) (the Index), for the same period. (Performance for all share classes is provided in the table immediately following this letter.)
The global equity market was volatile, but ultimately generated a positive return during the reporting period. Investor sentiment fluctuated given incoming economic data and expectations for central bank rate hikes to fight inflation. Repercussions from the war in Ukraine and other geopolitical events also impacted the global equity market.
Stock selection contributed to the Fund’s relative performance, whereas sector allocation was a headwind for returns during the reporting period. Looking at stock selection, positions in the Consumer Discretionary, Communication Services and Materials sectors were the largest contributors to performance. In terms of individual stocks, entertainment company Netflix, Inc., software firm Constellation Software, Inc. and internet & direct marketing retail company MercadoLibre, Inc. were the most additive for returns. On the downside, holdings in the Information Technology (IT), Industrials and Utilities sectors were among the largest detractors from performance. Individual stocks that negatively impacted returns included online retail firm Amazon.com, Inc., IT services company Okta, Inc. and entertainment firm Walt Disney Co. We eliminated our position in Okta, Inc. during the reporting period.
In terms of sector allocation, overweights to Communication Services and Consumer Discretionary versus the Index were the largest negatives for relative performance. On the upside, an overweight to Industrials and lack of exposure to Real Estate were the most additive to performance.
Despite slowing in the global economy and widespread caution in the investment community (much of which we consider is warranted), we continue to find opportunities, specifically, China reopening and European resilience. We are monitoring China’s reopening closely. In our view, our alternative data work points to a solid reopening underway beginning in December, particularly in travel. Meanwhile, so far, we believe Europe has escaped a deceleration in economic activity. Warmer-than-expected weather has partially offset the continent’s energy dependence on Russia and other sources. Given the challenging overall economic backdrop we see today, we are particularly interested in capitalizing on slight dislocations in defensive areas. We believe that one of these areas is U.S. health insurance, where we leveraged our unique alternative data capabilities. In addition, we continue to own several high-growth names which we believe will defy the sluggish backdrop, winning material share in the coming years, as these are poised to benefit in the event of a shift in investor sentiment after 2022’s decline.
Sincerely,
Timothy Creedon and Hari Ramanan
Portfolio Managers
Information about principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The portfolio composition, industries and holdings of the Fund are subject to change without notice.
The opinions expressed are those of the Fund’s portfolio managers. The opinions are as of the date of this report and are subject to change without notice.
|
(as a % of Total Investments*) |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| Derivatives (other than options purchased), if any, are excluded from this chart. |
| | | | |
| | Six Month
Period Ended
02/28/2023 | Average Annual Total Return
Ended 02/28/2023 |
| | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | |
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 current performance data, including current to the most recent month-end, please visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Investment Advisers LLC ("NBIA") 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 NBIA) 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 2022 were 0.89%, 1.10%, 1.25%, 0.75%, 1.13%, and 1.91% 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). The expense ratio was 1.11% and 1.86% for Class A and Class C shares, after expense reimbursements and/or fee waivers. The expense ratios for the semi-annual period ended February 28, 2023, can be found in the Financial Highlights section of this report.
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 contingent deferred sales charge ("CDSC") for Class C shares. The CDSC for Class C shares is 1.00%, 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.
Genesis Fund Commentary (Unaudited)
Neuberger Berman Genesis Fund Investor Class generated a 5.44% total return for the six-month period ended February 28, 2023 (the reporting period), outperforming the 3.63% total return of its benchmark, the Russell 2000® Index (the Index), for the same period. (Performance for all share classes is provided in the table immediately following this letter.)
The overall U.S. equity market was volatile, but ultimately generated a positive return during the reporting period. Investor sentiment fluctuated given incoming economic data and expectations for the U.S. Federal Reserve Board (Fed) rate hikes to fight inflation. Repercussions from the war in Ukraine and other geopolitical events also impacted the equity market. Despite concerns that elevated inflation could trigger a recession, the U.S. economy was resilient. All told, the Index returned 3.63% during the reporting period.
The Fund outperformed the Index on a relative basis due to strong sector allocation. Stock selection was also additive for returns. From a sector allocation perspective, an underweight to Health Care versus the Index and an overweight to Industrials were the largest contributors to relative results. Within Health Care, the Fund’s minimal exposure to Biotechnology companies, which in the small-cap space tend to be speculative and lower quality in nature, added the most to relative results, as these companies declined during the reporting period. Within Industrials, our overweight to Machinery companies added the most value. On the downside, an underweight to Energy versus the Index was the only meaningful detractor from performance from a sector allocation perspective.
In terms of stock selection, the Fund’s strongest relative results were in the Information Technology (led by Semiconductors & Semiconductor Equipment), Health Care (led by Health Care Equipment & Supplies) and Real Estate (led by Real Estate Management & Development) sectors. Conversely, stock selection in the Communication Services (driven by Media), Energy (driven by Oil, Gas & Consumable Fuels) and Consumer Staples (driven by Food & Staples Retailing) sectors were drags on results.
The Fed remains squarely focused on restoring price stability by increasing the Fed Funds rate, with the expectation that this will depress demand and bring inflation under control. Over the past few months, inflation data has been mixed, with some data suggesting inflation is cooling and other suggesting the Fed has more to do. This has led to a tug of war in equity markets, as each piece of data is highly scrutinized and subsequently reflected in equity prices. At a high level, we have entered a wildly different regime than the one present for the last decade. Risk aversion has returned, inflation is running hot, access to financing is becoming harder and the cost of capital has risen materially. In sum total, this has led to an increasing concern by investors around the potential for a recession in the U.S. and globally. With potential macro outcomes highly uncertain, we are striving to maintain balance in the Fund across sectors. We are confident that investing in a diversified portfolio of what we believe are financially strong companies, with sustainable and highly differentiated business models, is a prudent approach for long-term investment success.
Sincerely,
Judith M. Vale, Robert W. D'Alelio, Brett S. Reiner and Gregory G. Spiegel
Portfolio Co-Managers
Information about principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The portfolio composition, industries and holdings of the Fund are subject to change without notice.
The opinions expressed are those of the Fund’s portfolio managers. The opinions are as of the date of this report and are subject to change without notice.
|
(as a % of Total Investments*) |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| Derivatives (other than options purchased), if any, are excluded from this chart. |
| | | | |
| | Six Month
Period Ended
02/28/2023 | Average Annual Total Return
Ended 02/28/2023 |
| | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | |
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 current performance data, including current to the most recent month-end, please visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Investment Advisers LLC ("NBIA") 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 NBIA) 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 2022 were 1.00%, 1.09%, 1.34%, 0.84%, 0.74% and 0.70% for Investor Class, Trust Class, Advisor Class, Institutional Class, Class R6 and Class E shares, respectively, (before expense reimbursements and/or fee waivers, if any). The expense ratio for fiscal year 2022 was 0.04% for Class E after expense reimbursements and/or fee waivers. The expense ratios for the semi-annual period ended February 28, 2023, can be found in the Financial Highlights section of this report.
Global Real Estate Fund Commentary (Unaudited)
Neuberger Berman Global Real Estate Fund Institutional Class generated a -3.72% total return for the six-month period ended February 28, 2023 (the reporting period), underperforming the -2.52% total return of its benchmark, the FTSE EPRA Nareit Developed Index (Net) (the Index), for the same period. (Performance for all share classes is provided in the table immediately following this letter.)
The broader MSCI All Country World Index (Net) was volatile, but ultimately generated a positive 3.32% total return during the reporting period, affected by the relative strength of the economic data and rate expectations. Repercussions from the war in Ukraine and other geopolitical events also impacted the global markets. Global real estate investment trusts (REITs) generated negative results, partially due to rising interest rates.
A large overweight position in the Infrastructure REITs sector versus the Index was the largest detractor from a relative return perspective. Elsewhere, stock selection was a modest drag on performance, whereas country positioning contributed to the Fund’s returns.
From a stock selection perspective, holdings in the Infrastructure REITs, Specialty REITs and Storage REITs sectors were the largest detractors from relative returns. Several individual holdings were also headwinds for performance, including American Tower Corp., Crown Castle, Inc. and Duke Realty Corp, the latter of which was sold. On the upside, the Office REITs, Real Estate Holding & Development and Health Care REITs sectors were the most additive for returns versus the Index. In terms of individual holdings, Gecina SA, Simon Property Group, Inc. and Prologis, Inc. were the largest contributors to performance. In terms of the Fund’s positioning from a country perspective, overweights to Spain, France and China versus the Index were the most beneficial for relative returns. On the downside, an overweight to the U.K and lack of exposure to Sweden were the only meaningful detractors from relative performance.
Looking ahead, while supply shocks to U.S. inflation appear to be fading, demand-driven inflation in services has been elevated and persistent. We continue to remain cautious as the macro backdrop is weighed down by a hawkish U.S. Federal Reserve Board determined to get inflation under control, slower economic growth, and lack of liquidity in both transaction markets and private investment vehicles. The global economy appears to be weakening, highlighted by slowing housing and low business confidence. The U.S./China geopolitical tension, the cost of living crisis in Europe and a possible major policy pivot by the Bank of Japan may also dampen market sentiment. However, the reopening of China’s economy, lower energy and commodity prices, and a slowing labor market could provide some support for the view that inflation levels are peaking.
We believe that the elevated cost of capital for the REITs, paired with likely slowing fundamentals from a robust 2021/2022 leasing period, will likely stall business decisions and weigh on overall demand and earnings growth for REITs. In our view, property sector and stock selection will be important return generators, more so than in the past. We believe many REITs are prepared for a meaningful disruption to business demand, with strong balance sheets, relatively low new construction activity and diverse demand drivers that lean more defensive. The rapid reversal of fundraising by non-traded REITs and waves of redemption requests may provide a window of opportunity for REITs to selectively acquire assets at relatively attractive valuations.
While we believe the macro backdrop will continue to weigh on stocks, we will continue to focus on select companies with what we believe are relatively better fundamentals, diverse demand drivers and strong balance sheets that can withstand increased market volatility.
Sincerely,
Steve Shigekawa, Brian C. Jones and Anton Kwang
Portfolio Managers
Information about principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The portfolio composition, industries and holdings of the Fund are subject to change without notice.
The opinions expressed are those of the Fund’s portfolio managers. The opinions are as of the date of this report and are subject to change without notice.
Global Real Estate Fund (Unaudited)
| | | |
| | Six Month
Period Ended
02/28/2023 | Average Annual Total Return
Ended 02/28/2023 |
| | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | |
| | | | | |
| | | | | |
| | | | | |
FTSE EPRA Nareit
Developed Index
| | | | |
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 current performance data, including current to the most recent month-end, please visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Investment Advisers LLC ("NBIA") 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 NBIA) 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 2022 were 7.96%, 8.58% and 9.22% for Institutional Class, Class A and Class C shares, respectively (before expense reimbursements and/or fee waivers, if any). The expense ratios were 1.01%, 1.37% and 2.12% for Institutional Class, Class A and Class C shares, respectively, after expense reimbursements and/or fee waivers. The expense ratios for the semi-annual period ended February 28, 2023, can be found in the Financial Highlights section of this report.
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 contingent deferred sales charge ("CDSC") for Class C shares. The CDSC for Class C shares is 1.00%, 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.
Greater China Equity Fund Commentary (Unaudited)
Neuberger Berman Greater China Equity Fund Institutional Class generated a 1.43% total return for the six-month period ended February 28, 2023 (the reporting period), outperforming its benchmark, the MSCI China All Shares Index (Net) (the Index), which returned -2.00% over the same period. (Performance for all share classes is provided in the table immediately following this letter.)
For the reporting period, the Fund’s main detractors from performance relative to the Index included Consumer Staples (stock selection in food products) and Materials (stock selection in construction materials). Contributors to performance relative to the Index included Health Care (stock selection in biotechnology and pharmaceuticals), Consumer Discretionary (stock selection in household durables) and Financials (stock selection in insurance and banks).
The Fund continues to focus on companies that have sustainable top and bottom-line growth by looking at the companies’ operating cash flow from their recurring core businesses. As of the close of the reporting period, the Fund’s largest sector overweight was Materials, and the largest sector underweight was Communication Services. The Fund’s top 10 positions comprised more than 49% of total portfolio assets at the end of February.
In September and October 2022, China equity markets underwent severe turbulence given China’s ongoing "zero-COVID policy" which posed significant challenges to domestic economic conditions. Investors were also concerned about the weak housing market, geopolitical tensions and implications of upcoming leadership changes following the 20th Party Congress. China equity markets subsequently rebounded from November as China accelerated its reopening process and rolled out supportive measures for property developers. Policymakers also took a concerted approach to promote growth and boost consumption. The market rally was carried into January 2023 as high frequency data showed a faster than expected mobility recovery in China and macro indicators came in above expectations. However, China equity markets corrected in February as investors took profits following the strong rebound from November and stayed on the sidelines to wait for guidance from the National People’s Congress in early March.
Looking ahead, we anticipate economic growth to see a sharp rebound amid a faster pace of reopening and a supportive policy backdrop. Infrastructure investment growth will likely remain elevated, with domestic consumption recovering as the employment rate improves with China’s full reopening. On the real estate front, further demand-side easing, and policy support are anticipated to alleviate developers’ liquidity pressure, reining in any potential spillovers to the broader economy. Overall, we continue to hold a constructive view on the outlook for Greater China equities. We believe valuations remain reasonably attractive, with the Index trading at a price/earnings ratio (P/E) of 11.7 and the CSI 300 Index at 12.3 on a forward-looking basis, versus the MSCI World Index at 16.6 and the S&P 500® Index at 18.41. We anticipate an expansion in stock valuations supported by improving fundamentals and strong earnings growth resulting from the expected economic recovery. That being said, we are mindful of possible downside scenarios such as weaker external demand given global recessionary risk, slower-than-expected consumption recovery and potential escalation of geopolitical risks. As such, the Fund continues to identify high quality companies with good earnings visibility and strong long-term growth prospects, which we believe are capable of weathering the uncertain macro environment on the horizon.
Sincerely,
Lihui Tang and Frank Yao
Portfolio Managers
1 Forward earnings estimates are based on consensus estimates, not Neuberger Berman’s own projections, and the forecasts may or may not be realized. By quoting them herein, Neuberger Berman does not offer an opinion as to the accuracy of, and does not guarantee, these forecasted numbers.
Information about principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The portfolio composition, industries and holdings of the Fund are subject to change without notice.
The opinions expressed are those of the Fund’s portfolio managers. The opinions are as of the date of this report and are subject to change without notice.
Greater China Equity Fund (Unaudited)
|
(as a % of Total Investments*) |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| Derivatives (other than options purchased), if any, are excluded from this chart. |
|
(as a % of Long Term Investments) |
| |
| |
| |
| |
| | | |
| | Six Month
Period Ended
02/28/2023 | Average Annual Total Return
Ended 02/28/2023 |
| | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | |
| | | | | |
| | | | | |
| | | | | |
MSCI China All Shares Index
| | | | |
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 current performance data, including current to the most recent month-end, please visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Investment Advisers LLC ("NBIA") 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 NBIA) 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 2022 were 1.91%, 2.41% and 3.22% for Institutional Class, Class A and Class C shares, respectively (before expense reimbursements and/or fee waivers, if any). The expense ratios were 1.51%, 1.87% and 2.62% for Institutional Class, Class A and Class C shares, respectively, after expense reimbursements and/or fee waivers. The expense ratios for the semi-annual period ended February 28, 2023, can be found in the Financial Highlights section of this report.
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 contingent deferred sales charge ("CDSC") for Class C shares. The CDSC for Class C shares is 1.00%, 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.
International Equity Fund Commentary (Unaudited)
Neuberger Berman International Equity Fund Institutional Class generated a total return of 10.46% for the six-month period ended February 28, 2023 (the reporting period), trailing its benchmark, the MSCI EAFE® Index (Net) (the Index), which posted a 12.58% total return for the same period. (Performance for all share classes is provided in the table immediately following this letter.)
The Index dramatically outperformed both the S&P 500® Index and MSCI Emerging Markets Index (Net), which returned 1.26% and -2.29%, respectively, during the reporting period. EAFE markets rallied in the fourth quarter of calendar year 2022, closing a tough year on a positive note, and this optimistic trend continued in early 2023.
Inflation was the most significant factor eroding equity performance during most of 2022. Inflation, especially in energy prices, had surged on a variety of factors related to the pandemic and war in Ukraine. Central banks raised interest rates to reduce demand and thus undermine inflation, but this action intensified worries about a possible global recession.
By the fourth quarter, however, sentiment had shifted. Inflation appeared to have peaked, and a growing consensus around a soft landing instead of recession turned markets positive. The relatively mild winter in Europe, along with a meaningful decline in demand, added to relief, as it helped defuse a potential energy crisis and lowered recession risk further.
Within the Index, Austria, Italy and Spain were the best performing markets this period, while Israel and Norway declined and Portugal was basically flat. By sector, Financials, Materials and Energy outperformed in the Index, and Real Estate, Communication Services and Consumer Staples lagged.
Overall stock selection detracted from relative performance this period, as many of the types of quality companies we prefer rose less than the value segments of the market. The Fund’s holdings within Financials, Consumer Discretionary and Health Care were weakest on a relative basis, and regionally, French, German, and UK-based holdings lagged.
Individual detractors included Petershill Partners, the UK-listed private markets firm, which was weaker given higher rates could impact private markets activity, and Roche, the Swiss pharmaceuticals giant, which reported lackluster third-quarter earnings, and announced the failure of highly anticipated clinical trials for an Alzheimer’s treatment. We continue to own and believe in both names.
On the positive side, overall sector allocation was a benefit, and stock selection within Communication Services, Real Estate and Energy benefited relative results. Our underweights to Japan and Australia and overweight to Austria versus the Index helped as well.
Schlumberger and SAP were among the top contributors. Schlumberger, the global oil services specialist, reported strong third-quarter results, with all headline figures exceeding expectations. SAP, the German software firm, reported robust earnings, demonstrating the resiliency of its cloud business despite a tougher macroeconomic backdrop.
Looking ahead, we are skeptical that many companies will be able to maintain current margins given continuing cost pressures, higher rates, elevated inventories, and slower economic growth. We believe declining inflation poses a risk as well, as recent strong revenue growth has been largely due to price, rather than volume, increases.
The Fund continues to be focused on quality businesses with resilient earnings streams while developing ideas that we believe may benefit in the macro backdrop we anticipate. We are working to strike the right balance between what we believe are quality defensive names, quality secular growth opportunities (made more attractive by last year’s selloff), and companies that are positioned to benefit from the higher inflation, higher interest rate, and higher nominal growth environment that we foresee over the medium term.
Sincerely,
Elias Cohen and Thomas Hogan
Portfolio Managers
Information about principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The portfolio composition, industries and holdings of the Fund are subject to change without notice.
The opinions expressed are those of the Fund’s portfolio managers. The opinions are as of the date of this report and are subject to change without notice.
International Equity Fund (Unaudited)
| | | | |
| | Six Month
Period Ended
02/28/2023 | Average Annual Total Return
Ended 02/28/2023 |
| | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
MSCI EAFE® Index (Net)1,2 | | | | | |
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 current performance data, including current to the most recent month-end, please visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Investment Advisers LLC ("NBIA") 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 NBIA) 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 2022 were 1.19%, 1.26%, 1.00%, 1.37%, 2.12%, 0.90% and 0.86% for Investor Class, Trust Class, Institutional Class, Class A, Class C, Class R6 and Class E shares, respectively (before expense reimbursements and/or fee waivers, if any). The expense ratios were 0.87%, 1.23%, 1.98%, 0.77% and 0.07% for Institutional Class, Class A, Class C, Class R6 and Class E shares, respectively, after expense reimbursements and/or fee waivers. The expense ratios for the semi-annual period ended February 28, 2023, can be found in the Financial Highlights section of this report.
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 contingent deferred sales charge ("CDSC") for Class C shares. The CDSC for Class C shares is 1.00%, 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.
International Select Fund Commentary (Unaudited)
Neuberger Berman International Select Fund Trust Class generated a total return of 9.88% for the six-month period ended February 28, 2023 (the reporting period), trailing its benchmark, the MSCI EAFE® Index (Net) (the Index), which posted a 12.58% total return for the same period. (Performance for all share classes is provided in the table immediately following this letter.)
The Index dramatically outperformed both the S&P 500® Index and MSCI Emerging Markets Index (Net), which returned 1.26% and -2.29%, respectively, during the reporting period. EAFE markets rallied in the fourth quarter of calendar year 2022, closing a tough year on a positive note, and this optimistic trend continued in early 2023.
Inflation was the most significant factor eroding equity performance during most of 2022. Inflation, especially in energy prices, had surged on a variety of factors related to the pandemic and war in Ukraine. Central banks raised interest rates to reduce demand and thus undermine inflation, but this action intensified worries about a possible global recession.
By the fourth quarter, however, sentiment had shifted. Inflation appeared to have peaked, and a growing consensus around a soft landing instead of recession turned markets positive. The relatively mild winter in Europe, along with a meaningful decline in demand, added to relief, as it helped defuse a potential energy crisis and lowered recession risk further.
Within the Index, Austria, Italy and Spain were the best performing markets this period, while Israel and Norway declined and Portugal was basically flat. By sector, Financials, Materials and Energy outperformed in the Index, and Real Estate, Communication Services and Consumer Staples lagged.
Overall stock selection detracted from relative performance this period, as many of the types of quality companies we prefer rose less than the value segments of the market. The Fund’s holdings within Financials, Consumer Discretionary and Health Care were weak on a relative basis, and regionally, French, German, and UK-based holdings lagged.
Individual detractors included Petershill Partners, the UK-listed private markets firm, which was weaker given higher rates could impact private markets activity, and Roche, the Swiss pharmaceuticals giant, which reported lackluster third-quarter earnings, and announced the failure of highly anticipated clinical trials for an Alzheimer’s treatment. We continue to own and believe in both names.
On the positive side, overall sector allocation was a benefit, and stock selection within Communication Services, Energy and Consumer Staples benefited relative results. Our underweights to Australia and Japan versus the Index and a non-Index allocation to the U.S. helped as well.
Schlumberger and SAP were among the top contributors. Schlumberger, the global oil services specialist, reported strong third-quarter results, with all headline figures exceeding expectations. SAP, the German software firm, reported robust earnings, demonstrating the resiliency of its cloud business despite a tougher macroeconomic backdrop.
Looking ahead, we are skeptical that many companies will be able to maintain current margins given continuing cost pressures, higher rates, elevated inventories, and slower economic growth. We believe declining inflation poses a risk as well, as recent strong revenue growth has been largely due to price, rather than volume, increases.
The Fund continues to be focused on quality businesses with resilient earnings streams while developing ideas that we believe may benefit in the macro backdrop we anticipate. We are working to strike the right balance between what we believe are quality defensive names, quality secular growth opportunities (made more attractive by last year’s selloff), and companies that are positioned to benefit from the higher inflation, higher interest rate, and higher nominal growth environment that we foresee over the medium term.
Sincerely,
Elias Cohen and Thomas Hogan
Portfolio Managers
Information about principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The portfolio composition, industries and holdings of the Fund are subject to change without notice.
The opinions expressed are those of the Fund’s portfolio managers. The opinions are as of the date of this report and are subject to change without notice.
International Select Fund (Unaudited)
| | | | |
| | Six Month
Period Ended
02/28/2023 | Average Annual Total Return
Ended 02/28/2023 |
| | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | |
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 current performance data, including current to the most recent month-end, please visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Investment Advisers LLC ("NBIA") 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 NBIA) 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 2022 were 1.42%, 1.00%, 1.37%, 2.15%, 1.64% and 0.91% for Trust Class, Institutional Class, Class A, Class C, Class R3 and Class R6 shares, respectively (before expense reimbursements and/or fee waivers, if any). The expense ratios were 1.20%, 0.85%, 1.20%, 1.95%, 1.46% and 0.74% for Trust Class, Institutional Class, Class A, Class C, Class R3 and Class R6 shares, respectively, after expense reimbursements and/or fee waivers. The expense ratios for the semi-annual period ended February 28, 2023, can be found in the Financial Highlights section of this report.
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 contingent deferred sales charge ("CDSC") for Class C shares. The CDSC for Class C shares is 1.00%, 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.
International Small Cap Fund Commentary (Unaudited)
Neuberger Berman International Small Cap Fund Institutional Class reported a total return of 9.15% for the six-month period ended February 28, 2023 (the reporting period), outperforming the 7.74% total return of its benchmark, the MSCI EAFE® Small Cap Index (Net) (the Index), for the same period. (Performance for all share classes is provided in the table immediately following this letter.)
Closing a difficult and volatile 2022 on an up note, global equity markets rallied in the fourth quarter of 2022 and into early 2023, as headline inflation appeared to have peaked. The Index trailed the larger-cap MSCI EAFE® Index (Net), which had a 12.58% total return, and exceeded returns of both the S&P 500® Index and the MSCI Emerging Markets Index (Net), which returned 1.26% and -2.29%, respectively.
Investor sentiment improved significantly following the release of U.S. inflation data for October and November. November’s data was below expectations, which investors appeared to interpret as a signal that the end of the rate hiking cycle—and the risk it could overcool the economy and result in recession—was nearer. Eurozone inflation fell for the first time in 17 months in November but remained elevated. However, unseasonably mild winter temperatures have helped.
Within the Index, Financials performed best, with a boost from higher interest rates. The Industrials and Consumer Discretionary sectors also outperformed. Real Estate (hurt by higher interest rates), Health Care and Utilities declined. By country, Italy, Spain and Ireland each more than tripled the Index average, while Israel declined sharply, and New Zealand and Singapore declined slightly.
Stock selection within Materials, Real Estate (where an underweight versus the Index was also beneficial) and Consumer Staples was a relative benefit for the Fund during this reporting period. By country, our underweight in Israel, and holdings within Switzerland and Australia added to relative results.
Top contributors included Kemira, the Finnish specialty chemical producer, which published strong fiscal year figures with both of its business lines enjoying strong revenue growth, and Interparfums, the French manufacturer of branded perfumes, which announced a 15-year licensing agreement with Lacoste that will begin in January 2024.
Sector allocation, including an underweight to Financials and an overweight to Health Care versus the Index, detracted from relative results. Stock selection within Consumer Discretionary and Industrials, and by country, holdings based in Sweden, the UK and Denmark detracted.
Individual detractors included CellaVision and Dustin Group. The former, which is a Swedish automated blood analysis equipment manufacturer, saw margins decrease as its end markets slowed down, and the stock is under review by us. The latter is a Swedish Information Technology products and services company that also saw its end markets’ demand suffer, leading to a review and sale during the reporting period.
Looking forward, we remain cautious despite the positive data and developments that fueled this period’s positive sentiment. Our principal concern is that there is little visibility on global central banks’ final rate targets and the duration at which the rate will stay at the targeted level, so we continue to be concerned about the possibility of recession.
Within a context of uncertain economic prospects, we continue to remain cautious and are maintaining a balanced approach. We still believe that a capital expenditure cycle driven by reshoring, renewable energy investments, and eventually, pent-up demand for capital spending will materialize in the medium term; but commodity prices and interest rates could impact the timing of expenditures spent across various industries.
We remain focused on identifying quality companies, with stable end markets, resilient free cash flows, and trading when volatile markets create what we believe are attractive entry and exit points.
Sincerely,
David Bunan
Portfolio Manager
Information about principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The portfolio composition, industries and holdings of the Fund are subject to change without notice.
The opinions expressed are those of the Fund’s portfolio manager. The opinions are as of the date of this report and are subject to change without notice.
International Small Cap Fund (Unaudited)
| | | |
| | Six Month
Period Ended
02/28/2023 | Average Annual Total Return
Ended 02/28/2023 |
| | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | |
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 current performance data, including current to the most recent month-end, please visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Investment Advisers LLC ("NBIA") 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 NBIA) 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 2022 were 10.11%, 10.47%, 11.24% and 10.00% for Institutional Class, Class A, Class C and Class R6 shares, respectively (before expense reimbursements and/or fee waivers, if any). The expense ratios were 1.07%, 1.42%, 2.18% and 0.97% for Institutional Class, Class A, Class C and Class R6 shares, respectively, after expense reimbursements and/or fee waivers. The expense ratios for the semi-annual period ended February 28, 2023, can be found in the Financial Highlights section of this report.
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 contingent deferred sales charge ("CDSC") for Class C shares. The CDSC for Class C shares is 1.00%, 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.
Intrinsic Value Fund Commentary (Unaudited)
Neuberger Berman Intrinsic Value Fund Institutional Class generated a 6.12% total return for the six-month period ended February 28, 2023 (the reporting period), outperforming its benchmark, the Russell 2000® Value Index (the Index), which generated a 4.20% total return for the same period. (Performance for all share classes is provided in the table immediately following this letter.)
After a disappointing 2022, equity markets kicked off 2023 with a strong start. Stocks rallied in January on hopes that inflation was slowing which could lead to smaller U.S. Federal Reserve Board rate increases and possibly a pause later this year. However, in February, resilient economic data suggested that a pause in rate increases might be further off than hoped for.
Much of the Fund’s outperformance for the reporting period can be attributed to an overweight in Information Technology (IT) stocks versus the Index as the sector came back into favor in January and February after last year’s sell-off. Our limited exposure to Real Estate stocks helped as this sector lost ground due to a continued decline in new and existing home sales. In Consumer Discretionary, our Leisure stocks delivered solid returns. Strong stock selection in Communication Services also contributed to both absolute and relative returns. Energy sector performance remained strong and while our Energy Equipment & Services stocks performed well, our Oil Gas & Consumable Fuels companies struggled mainly due to stock specific issues. In Utilities, our Independent Power and Renewable Electricity Producers underperformed along with several of our Industrials investments, particularly our Electrical Equipment providers.
During the reporting period our activity was focused on adding to certain underperformers that we remain confident in and trimming winners rather than introducing new ideas. Additionally, only two companies were purchased by acquirors, slightly below our historical average. The outlook for Merger & Acquisition (M&A) for the remainder of 2023 remains uncertain. We believe that there is a lot of firepower on the sidelines, but leveraged lending markets are practically shut down, and caution prevails among private equity firms and strategic buyers. Smaller transactions by buyers looking for technology are likely, but public acquirors need to be very mindful of excessively leveraging their balance sheets.
Given current valuations, most of our activity during the reporting period was adding to existing investments (19) and trimming winners (7) while new buy activity was more muted (3). We also eliminated seven companies, one after it agreed to be acquired and six as our investment theses changed. Two of the three new investments were in our traditional wheelhouse of IT and Industrials sectors where a combination of complexity and interrupted growth led to underperformance.
We remain committed to constructive corporate engagements. During the reporting period we signed several non-disclosure agreements which enabled us to collaborate with managements of portfolio companies and propose strategies to enhance valuation. If we see a path toward faster resolution of the issues facing a portfolio company, we will move aggressively.
We remain confident in the compelling long-term opportunities in the small cap equity market and the Fund but uncertain that the challenges of 2022 will not prevail in the remainder of 2023. We thank you for your commitment of your capital to the Fund and will endeavor to intelligently compound your investment at an attractive rate of return.
Sincerely,
Benjamin H. Nahum, James F. McAree and Amit Solomon
Portfolio Co-Managers
Information about principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The portfolio composition, industries and holdings of the Fund are subject to change without notice.
The opinions expressed are those of the Fund’s portfolio managers. The opinions are as of the date of this report and are subject to change without notice.
Intrinsic Value Fund (Unaudited)
|
(as a % of Total Investments*) |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| Derivatives (other than options purchased), if any, are excluded from this chart. |
| | | | |
| | Six Month
Period Ended
02/28/2023 | Average Annual Total Return
Ended 02/28/2023 |
| | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | |
| | | | | |
*Performance data for the life of Fund for each Class prior to May 10, 2010 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 20 for more information.
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 current performance data, including current to the most recent month-end, please visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Investment Advisers LLC ("NBIA") 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 NBIA) 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 2022 were 1.01%, 1.37%, 2.12% and 0.87% for Institutional Class, Class A, Class C and Class R6 shares, respectively (before expense reimbursements and/or fee waivers, if any). The total annual operating expense ratios for each of Institutional Class, Class A and Class C includes each class’s repayment of expenses previously reimbursed and/or fees previously waived under the contractual expense limitation by NBIA. The expense ratios for the semi-annual period ended February 28, 2023, can be found in the Financial Highlights section of this report.
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 contingent deferred sales charge ("CDSC") for Class C shares. The CDSC for Class C shares is 1.00%, 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.
Large Cap Growth Fund* Commentary (Unaudited)
Neuberger Berman Large Cap Growth Fund (formerly Neuberger Berman Guardian Fund) Investor Class posted a -1.74% total return for the six-month period ended February 28, 2023 (the reporting period), trailing the -1.24% total return of its benchmark, the Russell 1000® Growth Index (the Index) for the same period. (Performance for all share classes is provided in the table immediately following this letter.)
On September 30, 2022, the Fund began comparing its performance to the Index rather than the S&P 500® Index because the Index has characteristics that are more representative of the Fund’s investment strategy than its former index, the S&P 500 Index. From the close of September 30, 2022 (the effective date of the change) through the end of the reporting period, the Fund’s Investor Class returned 8.26%, underperforming the Index, which returned 9.40%. For the entire reporting period, the Fund’s Investor Class returned -1.74%, underperforming the prior benchmark, which returned 1.26% for the reporting period.
The overall U.S. equity market was volatile, but ultimately generated a positive return during the reporting period. Investor sentiment fluctuated given incoming economic data and expectations for U.S. Federal Reserve Board (Fed) rate hikes to fight inflation. Repercussions from the war in Ukraine and other geopolitical events also impacted the equity market. Despite concerns that elevated inflation could trigger a recession, the U.S. economy was resilient. All told, the S&P 500 Index gained 1.26% during the reporting period. In contrast, the Index returned -1.24% over the same period.
Sector allocation contributed to the Fund’s relative performance, whereas stock selection was a headwind for returns over the reporting period. Looking at sector allocation, the Fund’s out-of-benchmark positions in several privately held companies were beneficial for performance. An overweight to Financials versus the Index was also additive for returns. Conversely, underweights to Industrials and Health Care were the largest detractor from results.
In terms of stock selection, holdings in the Health Care, Industrials and Financials sectors were the largest negatives for relative performance. Individual stocks that detracted from returns included online retailer Amazon.com, Inc., Google parent company Alphabet, Inc., and technology hardware storage & peripherals company Apple, Inc. On the upside, stock selection in the Consumer Discretionary, Communication Services and Energy sectors were the most beneficial for returns. In terms of individual stocks, specialty retailer TJX Cos., Inc., semiconductors & semiconductor equipment company NVIDIA Corp., and entertainment firm Netflix, Inc. were the most additive for performance.
The Fund’s use of written options contributed positively to performance during the reporting period.
Consensus estimates1 for S&P 500 earnings in 2023 have continued to decline, and earnings are anticipated to increase by about 4.5% year-over-year. If the U.S. enters a recession in 2023, these estimates may continue to decrease. A critical question is the severity of any earnings downturn. After waiting too long and calling inflation transitory, we fear the Fed may go too far and overshoot in the other direction. Economic growth drives earnings growth, and liquidity and discount rates drive market multiples. Our constructive long-term view is not without challenges as we move through 2023. This environment is flush with a confluence of fiscal policy considerations, tighter monetary policy, geopolitical uncertainty and commodity and currency price volatility. We highlight these risks because the current environment, as always, necessitates a flexible approach in the complex global world in which we operate.
Sincerely,
Charles Kantor and Marc Regenbaum
Portfolio Managers
* As previously disclosed in a supplement to the Fund's prospectus, effective September 30, 2022, the name of Neuberger Berman Guardian Fund changed to Neuberger Berman Large Cap Growth Fund.
1 Forward earnings estimates are based on consensus estimates, not Neuberger Berman’s own projections, and the forecasts may or may not be realized. By quoting them herein, Neuberger Berman does not offer an opinion as to the accuracy of, and does not guarantee, these forecasted numbers.
Information about principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The portfolio composition, industries and holdings of the Fund are subject to change without notice.
The opinions expressed are those of the Fund’s portfolio managers. The opinions are as of the date of this report and are subject to change without notice.
Large Cap Growth Fund (Unaudited)
|
(as a % of Total Investments*) |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| Derivatives (other than options purchased), if
any, are excluded from this chart. |
| | | | |
| | Six Month
Period Ended
02/28/2023 | Average Annual Total Return
Ended 02/28/2023 |
| | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Russell 1000® Growth Index*1,2 | | | | | |
| | | | | |
* Effective September 30, 2022, the Fund began comparing its performance to the Russell 1000 Growth Index rather than the S&P 500 Index because the Russell 1000 Growth Index has characteristics that are more representative of the Fund's investment strategy than its former index, the S&P 500 Index.
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 current performance data, including current to the most recent month-end, please visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Investment Advisers LLC ("NBIA") 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 NBIA) 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 2022 were 0.83%, 1.03%, 1.17%, 0.68%, 1.05%, 1.80%, 1.36% and 0.66% for Investor Class, Trust Class, Advisor Class, Institutional Class, Class A, Class C, Class R3 and Class R6 shares, respectively (before expense reimbursements and/or fee waivers, if any). The total annual operating expense ratio for Class R3 includes the class’s repayment of expenses previously reimbursed and/or waived under the contractual expense limitation by NBIA. The expense ratio was 0.58% for Class R6 shares, after expense reimbursements and/or fee waivers. The expense ratios for the semi-annual period ended February 28, 2023, can be found in the Financial Highlights section of this report.
Large Cap Growth Fund (Unaudited)
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 contingent deferred sales charge ("CDSC") for Class C shares. The CDSC for Class C shares is 1.00%, 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.
Large Cap Value Fund Commentary (Unaudited)
Neuberger Berman Large Cap Value Fund Investor Class generated a 5.76% total return for the six-month period ended February 28, 2023 (the reporting period), outperforming the 4.07% total return of its benchmark, the Russell 1000® Value Index (the Index). (Performance for all share classes is provided in the table immediately following this letter.)
The overall U.S. equity market was volatile, but ultimately generated a positive return during the reporting period. Investor sentiment fluctuated given incoming economic data and expectations for the U.S. Federal Reserve Board’s rate hikes to fight inflation. Repercussions from the war in Ukraine and other geopolitical events also impacted the equity market. Despite concerns that elevated inflation could trigger a recession, the U.S. economy was resilient. All told, large-cap value stocks, as measured by the Index, returned 4.07% over the reporting period. These stocks significantly outperformed the Russell 1000® Growth Index, which returned -1.24%.
The Fund outperformed its benchmark during the reporting period, driven by sector allocation and stock selection. From a sector allocation perspective, an overweight to Materials and an underweight to Information Technology versus the Index added the most relative value. This was partially offset by an overweight to Utilities and an underweight to Financials.
In terms of stock selection, holdings in the Health Care, Communication Services and Industrials sectors were the largest contributors to relative returns. Looking at individual stocks, JPMorgan Chase & Co. and oil gas & consumable fuels company Exxon Mobil Corp. were the most additive for returns. In contrast, holdings in the Financials, Consumer Staples and Consumer Discretionary were the largest detractors from results. Individual stocks that negatively impacted performance included electric utility NextEra Energy, Inc. and multi-utilities firm DTE Energy Co.
We consider ourselves to be in a very different world, one that has not been seen for decades—a world of inflation and deglobalization. In recent times we have been evaluating the implications of a weaker economy and have become more cautious on our outlook, notably the outlook implied by weakening demand. As such, we have been assessing what is the appropriate risk for our holdings within the Fund. We believe market volatility will be heightened in this period and the movement between value and growth on any given day has already seen increased volatility and we would expect that to continue.
Sincerely,
Eli M. Salzmann
Portfolio Manager
Information about principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The portfolio composition, industries and holdings of the Fund are subject to change without notice.
The opinions expressed are those of the Fund’s portfolio manager. The opinions are as of the date of this report and are subject to change without notice.
Large Cap Value Fund (Unaudited)
|
(as a % of Total Investments*) |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| Derivatives (other than options purchased), if any, are excluded from this chart. |
| | | | |
| | Six Month
Period Ended
02/28/2023 | Average Annual Total Return
Ended 02/28/2023 |
| | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | |
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 current performance data, including current to the most recent month-end, please visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Investment Advisers LLC ("NBIA") 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 NBIA) 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 2022 were 0.76%, 0.96%, 1.11%, 0.61%, 0.99%, 1.73%, 1.24%, 0.51% and 0.46% for Investor Class, Trust Class, Advisor Class, Institutional Class, Class A, Class C, Class R3, Class R6 and Class E shares, respectively (before expense reimbursements and/or fee waivers, if any). The expense ratio for fiscal year 2022 was 0.04% for Class E shares after expense reimbursements and/or fee waivers. The expense ratios for the semi-annual period ended February 28, 2023, can be found in the Financial Highlights section of this report.
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 contingent deferred sales charge ("CDSC") for Class C shares. The CDSC for Class C shares is 1.00%, 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.
Mid Cap Growth Fund Commentary (Unaudited)
Neuberger Berman Mid Cap Growth Fund Investor Class generated a -0.82% total return for the six-month period ended February 28, 2023 (the reporting period), trailing its benchmark, the Russell Midcap® Growth Index (the Index), which posted a 5.31% total return for the same period. (Performance for all share classes is provided in the table immediately following this letter.)
The reporting period was a roller-coaster of investor sentiment driven by mixed economic data points, varied interpretations of the U.S. Federal Reserve Board’s (Fed) ability to still engineer an effective or "soft" landing and a rotation away from many of the investments that had demonstrated resiliency and strength over the last twelve plus months. The net effect was shifting leadership that saw a value-style bias, cyclicality and allocation decisions generally trump higher expectation growth investments, longer-duration secular themes and bottom-up selection. Our relative performance struggles were further complicated by a whipsawing of risk-on/risk-off market sentiment to start calendar year 2023 and the Fund’s inability to keep pace with a sudden surge in market optimism that the Fed might be inclined to pause their restrictive agenda. While the sustainability of that optimism quickly proved vulnerable to less supportive data points and commentary that underscored the Fed’s determination to stay the course, the resulting late-period resetting of expectations was not sufficient to offset the negative impact of January’s underperformance in a surging "risk-on" environment.
Looking at attribution, positive stock selection within Industrials was unable to offset significant weakness within Information Technology (IT) and unfavorable combinations of what we did and didn’t own within both Financials and Energy. At the industry level, positive stock selection within our allocation to Industrial’s Aerospace & Defense industry resulted in that group being the leading contributor to relative performance. Within IT, the Software industry was the leading absolute and relative detractor, as the market, intent on broadly resetting expectations, took aim at generally unsustainable hyper-growth rates that were fueled by tremendous COVID-accelerated demand for digital transformation initiatives over the past several years. Drilling down to our holdings, Penumbra, Inc., which develops, manufactures and markets devices for interventional therapies to treat vascular conditions such as stroke and aneurysm, was the leading contributor to return as the company delivered bullish guidance that was well-received by the market. The leading detractor was MongoDB, Inc., a provider of database development consulting, tools and support, which despite delivering results that exceeded expectations fell victim to a discriminating market that chose to focus on growth rates and guidance that fell short of the magnitude of previous periods.
While we believe that we are closer than not to a positive inflection point in the battle to curb and effectively reset inflation, there are still hurdles ahead at a macro, economic and corporate fundamental-level. Given that potential for the unexpected, we believe that an emphasis on active management, a more judicious approach to risk and reward within the Fund and a bias towards higher qualitative characteristics, sustainable business models, balance sheet strength and managements capable of consistent execution will remain key to navigating a market that has the potential to remain volatile in the months ahead.
Sincerely,
Chad Bruso and Trevor Moreno
Portfolio Co-Managers
Information about principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The portfolio composition, industries and holdings of the Fund are subject to change without notice.
The opinions expressed are those of the Fund’s portfolio managers. The opinions are as of the date of this report and are subject to change without notice.
Mid Cap Growth Fund (Unaudited)
|
(as a % of Total Investments*) |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| Derivatives (other than options purchased), if any, are excluded from this chart. |
| | | | |
| | Six Month
Period Ended
02/28/2023 | Average Annual Total Return
Ended 02/28/2023 |
| | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | |
| | | | | |
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 current performance data, including current to the most recent month-end, please visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Investment Advisers LLC ("NBIA") 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 NBIA) 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 2022 were 0.84%, 0.94%, 1.20%, 0.70%, 1.06%, 1.81%, 1.31% and 0.59% for Investor Class, Trust Class, Advisor Class, Institutional Class, Class A, Class C, Class R3 and Class R6 shares, respectively (before expense reimbursements and/or fee waivers, if any). The expense ratios for the semi-annual period ended February 28, 2023, can be found in the Financial Highlights section of this report.
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 contingent deferred sales charge ("CDSC") for Class C shares. The CDSC for Class C shares is 1.00%, 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.
Mid Cap Intrinsic Value Fund Commentary (Unaudited)
Neuberger Berman Mid Cap Intrinsic Value Fund Investor Class generated a 4.82% total return for the six-month period ended February 28, 2023 (the reporting period), outperforming its benchmark, the Russell Midcap® Value Index (the Index), which returned 4.34% for the same period. (Performance for all share classes is provided in the table immediately following this letter.)
After a disappointing calendar year 2022, equity markets kicked off 2023 with a strong start. Stocks rallied in January on hopes that inflation was slowing which could lead to smaller U.S. Federal Reserve Board rate increases and possibly a pause later this year. However, in February, resilient economic data suggested that a pause in rate increases might be further off than hoped for.
Much of the Fund’s outperformance for the reporting period can be attributed to our overweight in Information Technology (IT) stocks as the sector came back into favor in the beginning of 2023 after last year’s sell-off. Our limited exposure to Real Estate stocks helped as this sector lost ground due to a continued decline in new and existing home sales. In Consumer Discretionary, our Leisure stocks delivered solid returns. Energy sector performance remained strong and while our Energy Equipment & Services stocks performed well, several of our Oil Gas and Consumable Fuels companies struggled mainly due to stock specific issues. Our Utilities companies underperformed along with several of our Industrials investments, particularly our Building Products investments. Financials sector performance was robust and our underweight versus the Index hurt; in addition, our Banks and Mortgage REITs underperformed.
During the reporting period, we introduced three new positions and added to two existing names while eliminating one and trimming eight. Two of the three new investments were in our traditional wheelhouse of IT and Industrials sectors where a combination of complexity and interrupted growth led to underperformance.
Merger & Acquisition (M&A) activity in the Fund was muted during the reporting period and the outlook for M&A for the remainder of 2023 remains uncertain. We believe there is a lot of firepower on the sidelines but leveraged lending markets are practically shut down and caution prevails among private equity firms and strategic buyers. Smaller transactions by buyers looking for technology are likely, but public acquirors need to be very mindful of excessively leveraging their balance sheets.
Putting it all together we remain confident in the compelling long-term opportunities in the mid-cap equity market and the Fund, but we are uncertain that the challenges of 2022 will not prevail into 2023. We thank you for your commitment of your capital to the Fund and will endeavor to intelligently compound your investment at an attractive rate of return.
Sincerely,
Michael C. Greene, Benjamin H. Nahum, James F. McAree, Amit Solomon and Rand W. Gesing
Portfolio Managers
Information about principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The portfolio composition, industries and holdings of the Fund are subject to change without notice.
The opinions expressed are those of the Fund’s portfolio managers. The opinions are as of the date of this report and are subject to change without notice.
Mid Cap Intrinsic Value Fund (Unaudited)
|
(as a % of Total Investments*) |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| Derivatives (other than options purchased), if any, are excluded from this chart. |
| | | | |
| | Six Month
Period Ended
02/28/2023 | Average Annual Total Return
Ended 02/28/2023 |
| | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | |
| | | | | |
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 current performance data, including current to the most recent month-end, please visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Investment Advisers LLC ("NBIA") 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 NBIA) 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 2022 were 1.45%, 1.63%, 1.28%, 1.68%, 2.43%, 1.94% and 1.55% for Investor Class, Trust Class, Institutional Class, Class A, Class C, Class R3 and Class R6 shares, respectively (before expense reimbursements and/or fee waivers, if any). The expense ratios were 1.25%, 0.85%, 1.21%, 1.96%, 1.46% and 0.75% for Trust Class, Institutional Class, Class A, Class C, Class R3 and Class R6 shares, respectively, after expense reimbursements and/or fee waivers. The expense ratios for the semi-annual period ended February 28, 2023, can be found in the Financial Highlights section of this report.
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 contingent deferred sales charge ("CDSC") for Class C shares. The CDSC for Class C shares is 1.00%, 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.
Multi-Cap Opportunities Fund Commentary (Unaudited)
Neuberger Berman Multi-Cap Opportunities Fund Institutional Class generated a 2.72% total return for the six-month period ended February 28, 2023 (the reporting period), outperforming the 1.26% total return of its benchmark, the S&P 500® Index (the Index) for the same period. (Performance for all share classes is provided in the table immediately following this letter.)
U.S. equities posted positive performance for the reporting period, as investor sentiment rebounded due to an improvement in the outlook for global growth and better-than-expected earnings results. The U.S. economy is proving to be resilient, highlighted by continued strength within the U.S. labor market. Companies and consumers continue to adapt to an economic environment characterized by higher interest rates and persistent inflation. We believe this interest rate environment will favor companies with attractive valuations, strong free cash flow generation, and appropriate capital structures. Nominal gross domestic product and corporate earnings are anticipated to grow in 2023, creating an opportunity on a company-specific basis to grow earnings and cash flow at attractive rates. We believe the individual companies within the Fund have strong underlying fundamentals and durable business models and are well positioned to create value as investors focus on company fundamentals.
The Fund generated superior stock selection versus the Index for the reporting period, which benefitted relative performance. Stock selection was strongest within the Consumer Discretionary, Consumer Staples and Health Care sectors. Portfolio positioning also benefitted relative performance, primarily due to the Fund having overweight positions to Financials, Industrials, and Materials versus the Index and an underweight to Utilities. An underweight to Information Technology (IT) and zero exposure to Energy detracted. The Fund finished the reporting period with an overweight relative to the Index in the Consumer Discretionary, Financials, and Materials sectors. The Fund completed the reporting period with underweight positions to Health Care and IT versus the Index; and had zero exposure to the Energy and Real Estate sectors.
Portfolio construction is an important component of our investment process and consists of three distinct investment categories: Special Situations, Opportunistic, and Classic. Special Situations have unique attributes (e.g., restructuring, spin-offs, post-bankruptcy equities) that require specific valuation methodologies and customized investment research. Opportunistic investments are companies that have become inexpensive for a tangible reason that we believe is temporary. Classic investments are those companies with long histories of shareholder friendly policies, high quality management teams and exceptional operating performance. We believe maintaining a balance of these three categories helps to mitigate risk within the Fund. We continue to find investment opportunities across each investment category that we believe have attractive risk/return profiles.
We continue to apply disciplined fundamental research to identify companies we believe have high quality business models with attractive free cash flow characteristics trading at compelling valuations. We believe our investment strategy has the ability to create long-term value for clients and effectively navigate the dynamic market environment. We are identifying what we believe are attractive investment opportunities as equity market conditions evolve. Select businesses are able to differentiate themselves from peers with company specific solutions in response to supply chain constraints, inflationary pressures, higher interest rates, and ongoing shifts in consumer behavior. We believe our disciplined free cash flow focused approach, understanding of capital structures, and valuation discipline, provide a potential benefit in the current environment. The depth of our "Storehouse of Knowledge" remains robust. We believe the Fund is well positioned to benefit as investors increase their focus on company fundamentals.
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 principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The portfolio composition, industries and holdings of the Fund are subject to change without notice.
The opinions expressed are those of the Fund’s portfolio manager. The opinions are as of the date of this report and are subject to change without notice.
Multi-Cap Opportunities Fund (Unaudited)
|
(as a % of Total Investments*) |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| Derivatives (other than options purchased), if any, are excluded from this chart. |
| | | | |
| | Six Month
Period Ended
02/28/2023 | Average Annual Total Return
Ended 02/28/2023 |
| | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | |
*The performance data for the life of Fund for each class includes the performance of the Fund’s oldest share class, Trust Class, from November 2, 2006 through December 21, 2009. See endnote 23 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 current performance data, including current to the most recent month-end, please visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Investment Advisers LLC ("NBIA") 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 NBIA) 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 2022 were 0.82%, 1.19%, 1.94% and 0.69% for Institutional Class, Class A, Class C and Class E shares, respectively (before expense reimbursements and/or fee waivers, if any). The expense ratio for fiscal year 2022 was 0.10% for Class E after expense reimbursements and/or fee waivers. The expense ratios for the semi-annual period ended February 28, 2023, can be found in the Financial Highlights section of this report.
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 contingent deferred sales charge ("CDSC") for Class C shares. The CDSC for Class C shares is 1.00%, 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.
Real Estate Fund Commentary (Unaudited)
Neuberger Berman Real Estate Fund Trust Class generated a -7.54% total return for the six-month period ended February 28, 2023 (the reporting period), underperforming the -5.88% total return of its benchmark, the FTSE Nareit All Equity REITs Index (the Index), for the same period. (Performance for all share classes is provided in the table immediately following this letter.)
The broader S&P 500® Index was volatile, but ultimately generated a positive 1.26% total return during the reporting period. Investor sentiment fluctuated given incoming economic data and expectations for the U.S. Federal Reserve Board’s (Fed) rate hikes to fight inflation. Repercussions from the war in Ukraine and other geopolitical events also impacted the equity market. Despite concerns that elevated inflation could trigger a recession, the U.S. economy was relatively resilient. Comparatively, real estate investment trusts (REITs), as measured by the Index, declined during the reporting period, partially due to rising interest rates.
The Fund underperformed the Index on a relative basis during the reporting period. Both stock selection and sector positioning detracted from results. In terms of stock selection, holdings within the Shopping Centers, Data Centers and Self Storage sectors were the largest headwinds to relative returns, while stocks within Health Care, Infrastructure REITs and Lodging/Resorts contributed the most to results. Individual holdings that detracted the most from results included American Tower Corp., Crown Castle, Inc. and SBA Communications Corp, while Simon Property Group, Inc., Prologis, Inc. and Equinix, Inc. contributed the most to returns.
Looking at sector allocation, the Fund’s overweight to Infrastructure REITs and an underweight to Industrial versus the Index were the largest negatives for relative returns. Conversely, an underweight to Office and a small cash position were the most beneficial for performance.
REITs trailed the broader S&P 500 Index predominantly on interest rate concerns. While supply shocks to inflation appear to be fading, especially in core goods, demand driven inflation in core services has been elevated and persistent. Meanwhile, wage inflation continues to be high. We remain cautious as the macro backdrop is weighed down by a hawkish Fed determined to get inflation under control, slower economic growth, and lack of liquidity in both transaction markets and private investment vehicles. The global economy appears to be weakening, highlighted by slowing housing and low business confidence. However, the reopening of China’s economy, lower energy and commodity prices, and a slowing labor market could provide some support for the view that inflation levels are peaking.
In our view, elevated cost of capital for the REITs, paired with likely slowing fundamentals from a robust 2021/2022 leasing period, will likely stall business decisions and weigh on overall demand and earnings growth for REITs. We believe that property sector and stock selection will be important return generators, more so than in the past. In our view, a majority of REITs are prepared for a meaningful disruption to business demand, with strong balance sheets, relatively low new construction activity and diverse demand drivers that lean more defensive. The rapid reversal of fundraising by non-traded REITs and waves of redemption requests may provide a window of opportunity for REITs to selectively acquire assets at relatively attractive valuations.
While we believe the macro backdrop will continue to weigh on the stocks, we will continue to focus on select companies with what we believe are relatively better fundamentals, diverse demand drivers and strong balance sheets that can withstand increased market volatility.
Sincerely,
Steve Shigekawa and Brian C. Jones
Portfolio Co-Managers
Information about principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The portfolio composition, industries and holdings of the Fund are subject to change without notice.
The opinions expressed are those of the Fund’s portfolio managers. The opinions are as of the date of this report and are subject to change without notice.
Real Estate Fund (Unaudited)
|
(as a % of Total Investments*) |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| Derivatives (other than options purchased), if any, are excluded from this chart. |
| | | | |
| | Six Month
Period Ended
02/28/2023 | Average Annual Total Return
Ended 02/28/2023 |
| | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | |
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 current performance data, including current to the most recent month-end, please visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Investment Advisers LLC ("NBIA") 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 NBIA) 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 2022 were 1.37%, 1.01%, 1.38%, 2.14%, 1.64%, 0.92% and 0.88% for Trust Class, Institutional Class, Class A, Class C, Class R3, Class R6 and Class E shares, respectively. The expense ratios were 0.85%, 1.21%, 1.96%, 1.46%, 0.75% and 0.08% for Institutional Class, Class A, Class C, Class R3, Class R6 and Class E shares, respectively, after expense reimbursements and/or fee waivers. The expense ratios for the semi-annual period ended February 28, 2023, can be found in the Financial Highlights section of this report.
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 contingent deferred sales charge ("CDSC") for Class C shares. The CDSC for Class C shares is 1.00%, 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.
Small Cap Growth Fund Commentary (Unaudited)
Neuberger Berman Small Cap Growth Fund Investor Class posted a 0.11% total return for the six-month period ended February 28, 2023 (the reporting period), trailing its benchmark, the Russell 2000® Growth Index (the Index), which returned 3.06% for the same period. (Performance for all share classes is provided in the table immediately following this letter.)
The reporting period was a roller-coaster of investor sentiment driven by mixed economic data points, varied interpretations of the U.S. Federal Reserve Board’s (Fed) ability to still engineer an effective or “soft” landing and a leadership rotation away from many of the investments that had demonstrated resiliency and strength over the last twelve plus months. While the entire reporting period proved choppy, our relative underperformance can essentially be distilled down to our more defensive positioning to end 2022, a whipsawing of risk-on/risk-off market sentiment to start calendar year 2023 and ultimately the Fund’s inability to keep pace with a sudden surge in market optimism. January’s sharp acceleration, powered by a rotation towards names previously out-of-favor and, in a disconnect with fundamentals, away from many of the Fund’s previous winners, was fostered by an overly optimistic assessment on the timing of when the Fed might pause their restrictive agenda. While the sustainability of that optimism quickly proved vulnerable to less supportive data points and commentary that underscored the Fed’s determination to stay the course, the resulting late-period resetting of expectations was not sufficient to offset the negative impact of January’s underperformance in a surging “risk-on” environment.
During the reporting period, positive stock-specific effects within Industrials, Financials and Consumer Discretionary, along with the additive effect of our avoidance of both Utilities and Real Estate, could not overcome the combined impact of stock-specific issues and the market’s sudden ambivalence to our stock selection efforts across Energy, Health Care, Materials, Information Technology, Communication Services and Consumer Staples. At the industry level, our overweight allocation to Semiconductors & Semiconductor Equipment was the leading contributor to relative performance as our holdings continued to execute and capitalize on robust demand that consistently outpaced available supply, while a mix of stock-specific issues resulted in our allocation to the Health Care Providers & Services segment being the leading detractor. Drilling down to our holdings, Impinj, Inc., which develops and markets a cloud-based identification technology platform of radio-frequency chips that wirelessly track items to facilitate shipment verification and inventory management, continued to crush expectations for revenue, operating margins and earnings, as easing supply issues boosted their ability to meet accelerating demand. The leading detractor was R1 RCM, Inc., a provider of revenue cycle management tools and advisory services to healthcare providers, which battled negative sentiment around tepid post-COVID patient participation and utilization trends and unfortunately compounded those headwinds by surprising the market with significantly worse than expected results. Given the lack of visibility into 2023 and unfamiliarity with new management, we exited our position in R1 RCM, Inc. during the reporting period.
While we believe that we are closer than not to a positive inflection point in the battle to curb and effectively reset inflation, there are still hurdles ahead at a macro, economic and corporate fundamental-level. Given that potential for the unexpected, we believe that an emphasis on active management, a more judicious approach to risk and reward within the Fund and a bias towards higher qualitative characteristics, sustainable business models, balance sheet strength and managements capable of consistent execution will remain key to navigating a market that has the potential to remain volatile in the months ahead.
Sincerely,
Chad Bruso and Trevor Moreno
Portfolio Co-Managers
Information about principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The portfolio composition, industries and holdings of the Fund are subject to change without notice.
The opinions expressed are those of the Fund’s portfolio managers. The opinions are as of the date of this report and are subject to change without notice.
Small Cap Growth Fund (Unaudited)
|
(as a % of Total Investments*) |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| Derivatives (other than options purchased), if any, are excluded from this chart. |
| | | | |
| | Six Month
Period Ended
02/28/2023 | Average Annual Total Return
Ended 02/28/2023 |
| | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | |
| | | | | |
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 current performance data, including current to the most recent month-end, please visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Investment Advisers LLC ("NBIA") 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 NBIA) 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 2022 were 1.33%, 1.49%, 1.64%, 1.13%, 1.53%, 2.25%, 1.78% and 1.06% for Investor Class, Trust Class, Advisor Class, Institutional Class, Class A, Class C, Class R3 and Class R6 shares, respectively (before expense reimbursements and/or fee waivers, if any). The expense ratios were 1.31%, 1.41%, 1.61%, 0.91%, 1.27%, 2.02%, 1.52% and 0.81% for Investor Class, Trust Class, Advisor Class, Institutional Class, Class A, Class C, Class R3 and Class R6 shares, respectively, after expense reimbursements and/or fee waivers. The expense ratios for the semi-annual period ended February 28, 2023, can be found in the Financial Highlights section of this report.
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 contingent deferred sales charge ("CDSC") for Class C shares. The CDSC for Class C shares is 1.00%, 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.
Sustainable Equity Fund Commentary (Unaudited)
Neuberger Berman Sustainable Equity Fund Investor Class reported a total return of 1.29% for the six-month period ended February 28, 2023 (the reporting period), outpacing the 1.26% total return of its benchmark, the S&P 500® Index (the Index) for the same period. (Performance for all share classes is provided in the table immediately following this letter.)
Throughout most of 2022, rising interest rates, steep inflationary pressures and fears of global recession weighed on markets worldwide. Growth stocks lagged value, as easy monetary policy that encouraged "risk-on" and speculative sentiment reversed course. Beginning in the fourth quarter of 2022, however, as inflation began to show signs of potentially taming, investor optimism that the interest rate hiking cycle could be nearing a peak fueled a rally that endured into early 2023.
As disciplined bottom-up investors, our strategy is designed to add value through active stock picking, and we anticipate to see stock selection as the key driver of relative performance over time. Within the Fund, holdings within Industrials, Financials and Utilities benefited relative performance most. An underweight to the weak Consumer Discretionary sector versus the Index was another plus.
JPMorgan Chase & Co., the leading diversified global financial services company, was our top contributor. The company’s strong, tenured management team has a prudent focus on maintaining a fortress balance sheet. The stock outperformed as the business benefited from higher interest rates and steady credit quality. Auto insurer Progressive Corp. was rewarded for continued disciplined underwriting and its investment portfolio benefited from higher interest rates.
We lagged the Index within Health Care, Communication Services and Consumer Staples. Alphabet, Inc. and Amazon.com, Inc. were key detractors, both suffering in part from a rotation away from large tech names. Alphabet, Inc., whose largest asset is Google, reported below-expectations earnings and lower margins. With a dominant franchise and a stock trading below the market and its historical multiples, we continue to believe in its longer-term prospects.
Revenues and profits at Amazon.com, Inc., the e-commerce and cloud leader, disappointed analysts. Macro trends have started impacting demand, both in retail and Amazon Web Services (AWS), in addition to margin headwinds from increased energy, labor, product and freight costs. While those concerns are valid, and Amazon.com, Inc. continues to struggle with overcapacity from substantial investments made during the pandemic, we believe the long-term potential remains bright, especially for AWS and advertising.
As we look ahead, we are pleased with our positioning and are optimistic even considering ongoing macro issues. Given an uncertain economic backdrop, we believe equity returns are likely to be driven by earnings, a scenario that favors bottom-up fundamental investors. Additionally, macroeconomic uncertainty can be an opening for strong, well-managed businesses to enhance their competitiveness and build long-term value. Finally, market volatility provides opportunity for nimble and focused long-term investors to make advantaged trades.
In our view, Environmental, Social and Governance (ESG) analysis provides an invaluable framework for understanding intangible assets that can drive long-term value for shareholders. For this reason, ESG analysis, and engagement with managements, is the cornerstone of our investment process.
Beyond that, our strategy requires us to see visible cash flows, deep economic moats, healthy balance sheets and pricing power, robust stakeholder relationships and/or credible performance on issues including diversity, management tenure, and operational efficiency.
Given our approach, we are confident in our ability to identify advantaged businesses positioned to outperform peers over market cycles.
We look forward to continuing to serve your investment needs.
Sincerely,
Daniel P. Hanson
Portfolio Manager
Information about principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The portfolio composition, industries and holdings of the Fund are subject to change without notice.
The opinions expressed are those of the Fund’s portfolio manager. The opinions are as of the date of this report and are subject to change without notice.
Sustainable Equity Fund (Unaudited)
|
(as a % of Total Investments*) |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| Derivatives (other than options purchased), if any, are excluded from this chart. |
| | | | |
| | Six Month
Period Ended
02/28/2023 | Average Annual Total Return
Ended 02/28/2023 |
| | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | |
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 current performance data, including current to the most recent month-end, please visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Investment Advisers LLC ("NBIA") 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 NBIA) 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 2022 were 0.85%, 1.03%, 0.68%, 1.05%, 1.80%, 1.30% and 0.58% for Investor Class, Trust Class, Institutional Class, Class A, Class C, Class R3 and Class R6 shares, respectively (before expense reimbursements and/or fee waivers, if any). The expense ratios for the semi-annual period ended February 28, 2023, can be found in the Financial Highlights section of this report.
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 contingent deferred sales charge ("CDSC") for Class C shares. The CDSC for Class C shares is 1.00%, 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.
U.S. Equity Impact Fund Commentary (Unaudited)
Neuberger Berman U.S. Equity Impact Fund Institutional Class generated a 6.02% total return for the six-month period ended February 28, 2023 (the reporting period) versus a 1.51% total return of its benchmark, the Russell 3000® Index (the Index) for the same period. (Performance for all share classes is provided in the table immediately following this letter.)
U.S. equities posted positive performance for the reporting period as investor sentiment rebounded due to an improvement in the outlook for global growth and better-than-expected earnings results. The U.S. economy has proved to be resilient, highlighted by continued strength within the U.S. labor market. Companies and consumers continue to adapt to an economic environment characterized by higher interest rates and persistent inflation. We believe the opportunity for Impact investing1 remains attractive due to strong demand for products and services which have the potential to generate significant positive outcomes for people and the planet.
Both superior stock selection and portfolio positioning benefitted relative performance. The Fund generated superior stock selection within the Consumer Discretionary, Consumer Staples, Health Care, Industrials, and Information Technology (IT) sectors. The Fund also benefitted from an underweight position to Consumer Discretionary, and overweight positions to Industrials and Materials versus the Index. Zero exposure to Energy and an overweight to Utilities detracted from relative performance. The Fund ended the reporting period with overweight positions relative to the Index in the Health Care, Industrials, and Materials sectors and underweight positions in the Consumer Discretionary, Financials, and IT sectors. The Fund had no exposure to the Communication Services, Energy or Real Estate sectors at the end of the reporting period.
Impact investing offers the unique potential to support measurable progress against real-world environmental and social challenges while seeking market rate returns. This approach invests in companies with products or services that have the potential to deliver significantly positive outcomes for people and the planet, while reporting and measuring the tangible contributions that portfolio companies make. Our proprietary quantitative and qualitative impact analysis requires a deep understanding of the product outcomes for customers, which is a lens that adds insight to our fundamental investment process. Positive and negative impacts associated with the products and services of each major business line of a company are assessed.
A company’s contribution to specific positive outcomes is evaluated with reference to the United Nations Sustainable Development Goals (UN SDGs). We believe companies delivering solutions aligned with achieving the UN SDGs have the potential for outsized growth and returns as these UN SDG goals become spending priorities. We believe the potential for significant incremental capital deployed to achieve UN SDGs. There is the potential for the reduction of macro uncertainty as we progress through 2023. This includes the potential for: improving supply chain and labor availability, decelerating rate of inflation, stabilizing/declining commodity prices and the ongoing reopening of the economy in China. We believe these developments will be beneficial for our strategy.
Sincerely,
Richard S. Nackenson and Jonathan Bailey
Portfolio Managers
1 Impact investing is the investment in a portfolio of companies whose products and services the portfolio managers believe have the potential to deliver positive social and environmental outcomes.
Information about principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The portfolio composition, industries and holdings of the Fund are subject to change without notice.
The opinions expressed are those of the Fund’s portfolio managers. The opinions are as of the date of this report and are subject to change without notice.
U.S. Equity Impact Fund (Unaudited)
|
(as a % of Total Investments*) |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| Derivatives (other than options purchased), if any, are excluded from this chart. |
| | |
| | Six Month
Period Ended
02/28/2023 | Average Annual Total Return
Ended 02/28/2023 |
| | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | |
| | | | |
| | | | |
| | | | |
| | | |
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 current performance data, including current to the most recent month-end, please visit www.nb.com/performance.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Investment Advisers LLC ("NBIA") 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 NBIA) 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 2022 were 5.27%, 5.77% and 6.77% for Institutional Class, Class A and Class C shares, respectively (before expense reimbursements and/or fee waivers, if any). The expense ratios for fiscal year 2022 were 0.91%, 1.27%, and 2.02% for Institutional Class, Class A and Class C shares, respectively, after expense reimbursements and/or fee waivers. The expense ratios for the semi-annual period ended February 28, 2023, can be found in the Financial Highlights section of this report.
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 contingent deferred sales charge ("CDSC") for Class C shares. The CDSC for Class C shares is 1.00%, 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.
| Please see "Glossary of Indices" on page 48 for a description of indices. Please note that individuals cannot invest directly in any index. The indices described in this report do not take into account any fees, expenses or tax consequences of investing in the individual securities that they track. Data about the performance of an index are prepared or obtained by Neuberger Berman Investment Advisers LLC ("NBIA") and reflect the reinvestment of income dividends and other distributions, if any. The Fund may invest in securities not included in a described index and generally does not invest in all securities included in a described index. |
| The date used to calculate Life of Fund performance for the index is the inception date of the oldest share class. |
| 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. |
| The performance information for Class R6 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. The Institutional Class has higher expenses and typically lower returns than Class R6. |
| The performance information for Institutional Class, Class A, Class C, Class R3 and Class E prior to June 9, 2008 is that of Neuberger Berman Equity Income 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 and Class E. The Trust Class had lower expenses and typically higher returns than Class A, Class C and Class R3. The performance information for Class R3 and Class E from June 9, 2008, to the respective 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. The Institutional Class has higher expenses and typically lower returns than Class E. |
| Neuberger Berman Focus 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. |
| 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. |
| 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. |
Endnotes (Unaudited) (cont’d)
| 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. |
| 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. |
| The performance information for Class R6 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 Class R6. |
| The performance information for Class E 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 Class E. |
| Neuberger Berman Global Real Estate Fund and Neuberger Berman International Small Cap Fund are each relatively small. The same techniques used to produce returns in a small fund may not work to produce similar returns in a larger fund and could have an impact on performance. |
| 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 those 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). |
| The performance information for Class A, Class C, Investor Class, and Trust Class prior to the classes’ inception date is that of the Fund’s Institutional Class. The performance information for 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 Institutional Class has lower expenses and typically higher returns than Class A, Class C, Investor Class, and Trust Class. |
| The performance information for Class E 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. The Institutional Class has higher expenses and typically lower returns than Class E. |
| 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. |
| 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. |
Endnotes (Unaudited) (cont’d)
| The performance information for Class R6 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 Class R6. |
| The performance information for Neuberger Berman Intrinsic Value Fund's 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. The performance for Class R6 from May 10, 2010 to January 18, 2019 includes the performance of the Fund’s Institutional Class, and prior to May 10, 2010 includes the performance of the Predecessors, as noted above. |
| 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. |
| This date reflects when NBIA first became the investment manager to the Fund. |
| Prior to December 14, 2009, Neuberger Berman Multi-Cap Opportunities Fund had different investment goals, strategies and portfolio management team. The performance information for Institutional Class, Class A, Class C and Class E 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). NBIA 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. The Trust Class had higher expenses and typically lower returns than Class E. The performance information for Class E from December 14, 2009, 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 higher expenses and typically lower returns than Class E. |
| The performance information for Class E 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 Class E. |
For more complete information on any of the Neuberger Berman Equity Funds, call us at (800) 877-9700, or visit our website at www.nb.com.
Glossary of Indices (Unaudited)
FTSE EPRA Nareit Developed Index (Net): | The index is a free float-adjusted, market capitalization-weighted index that is designed to measure the performance of listed real estate companies and real estate investment trusts (REITs) in developed markets. Net total return indexes reinvest dividends after the deduction of withholding taxes, using (for international indexes) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. |
FTSE Nareit All Equity REITs Index: | The index is a free-float adjusted, market capitalization-weighted index that tracks the performance of all tax-qualified equity real estate investment trusts (REITs) that are listed on the New York Stock Exchange, or NASDAQ. Equity REITs include all tax-qualified REITs with more than 50 percent of total assets in qualifying real estate assets other than mortgages secured by real property. |
MSCI All Country World Index (Net): | The index is a free float-adjusted, market capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets. The index consists of 47 country indexes comprising 23 developed and 24 emerging market country indexes. The developed market country indexes included are: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom and the United States. The emerging market country indexes included are: Brazil, Chile, China, Colombia, the Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Kuwait, Malaysia, Mexico, Peru, the Philippines, Poland, Qatar, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey, and the UAE. China A shares are included starting from June 1, 2018 and are partially represented at 20% of their free float-adjusted market capitalization as of November 2019. Net total return indexes reinvest dividends after the deduction of withholding taxes, using (for international indexes) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. Effective after the close on March 9, 2022, MSCI reclassified MSCI Russia Indexes from Emerging Markets to Standalone Markets status. At that time, all Russian securities were removed from this index at a final price of 0.00001, including both locally traded Russian equity constituents and Russian ADRs/GDRs constituents. |
MSCI China All Shares Index (Net): | The index is a free float-adjusted, market capitalization weighted index that is designed to measure the equity market performance of China share classes listed in Hong Kong, Shanghai, Shenzhen and outside of China. It covers the integrated MSCI China equity universe comprising A-shares, B-shares, H-shares, Red chips, P-chips and foreign listings listed outside China or Hong Kong (e.g. ADRs). A-shares are incorporated in China and trade on the Shanghai and Shenzhen exchanges; they are quoted in local renminbi and entail foreign investment regulations (QFII). B-shares are incorporated in China, and trade on the Shanghai and Shenzhen exchanges; they are quoted in foreign currencies (Shanghai USD, Shenzhen HKD) and are open to foreign investors. H-shares are incorporated in China and trade on the Hong Kong exchange and other foreign exchanges. Red chips and P-chips are incorporated outside of China and trade on the Hong Kong exchange. Red chips are usually controlled by the state or a province or municipality. P-chips are non state-owned Chinese companies incorporated outside the mainland and traded in Hong Kong. Net total return indexes reinvest dividends after the deduction of withholding taxes, using (for international indexes) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. |
Glossary of Indices (Unaudited) (cont’d)
MSCI EAFE® Index (Net)
(Europe, Australasia, Far East): | The index is a free float-adjusted, market capitalization-weighted index that is designed to measure the equity market performance of developed markets, excluding the United States and Canada. The index consists of the following 21 developed market country indexes: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. Net total return indexes reinvest dividends after the deduction of withholding taxes, using (for international indexes) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. |
MSCI Emerging Markets Index (Net): | The index is a free float-adjusted, market capitalization-weighted index that is designed to measure the equity market performance of emerging markets. The index consists of the following 24 emerging market country indexes: Brazil, Chile, China, Colombia, the Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Kuwait, Malaysia, Mexico, Peru, the Philippines, Poland, Qatar, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey, and the UAE. China A shares are included starting from June 1, 2018 and are partially represented at 20% of their free float-adjusted market capitalization as of November 2019. Net total return indexes reinvest dividends after the deduction of withholding taxes, using (for international indexes) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. Effective after the close on March 9, 2022, MSCI reclassified MSCI Russia Indexes from Emerging Markets to Standalone Markets status. At that time, all Russian securities were removed from this index at a final price of 0.00001, including both locally traded Russian equity constituents and Russian ADRs/GDRs constituents. |
MSCI EAFE® Small Cap Index (Net): | The index is a free float-adjusted, market capitalization-weighted index that is designed to measure the equity market performance of the small cap segment of developed markets, excluding the United States and Canada. The index consists of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. Net total return indexes reinvest dividends after the deduction of withholding taxes, using (for international indexes) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. |
| The index is a float-adjusted, market capitalization-weighted index that measures the performance of the large-cap segment of the U.S. equity market. It includes approximately 1,000 of the largest securities in the Russell 3000® Index (which measures the performance of the 3,000 largest U.S. public companies based on total market capitalization). The index is rebalanced annually in June. |
Russell 1000® Growth Index: | The index is a float-adjusted market capitalization-weighted index that measures the performance of the large-cap growth segment of the U.S. equity market. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The index is rebalanced annually in June. |
Russell 1000® Value Index: | The index is a float-adjusted, market capitalization-weighted index that measures the performance of the large-cap value segment of the U.S. equity market. It includes those Russell 1000 Index companies with lower price-to-book ratios and lower forecasted growth rates. The index is rebalanced annually in June. |
| The index is a float-adjusted, market capitalization-weighted index that measures the performance of the small-cap segment of the U.S. equity market. It includes approximately 2,000 of the smallest securities in the Russell 3000 Index (which measures the performance of the 3,000 largest U.S. public companies based on total market capitalization). The index is rebalanced annually in June. |
Glossary of Indices (Unaudited) (cont’d)
Russell 2000® Growth Index: | The index is a float-adjusted, market capitalization-weighted index that measures the performance of the small-cap growth segment of the U.S. equity market. It includes those Russell 2000 Index companies with higher price-to-book ratios and higher forecasted growth rates. The index is rebalanced annually in June. |
Russell 2000® Value Index: | The index is a float-adjusted, market capitalization-weighted index that measures the performance of the small-cap value segment of the U.S. equity market. It includes those Russell 2000 Index companies with lower price-to-book ratios and lower forecasted growth rates. The index is rebalanced annually in June. |
| The index is a float-adjusted, market-capitalization-weighted equity index that measures the performance of the 3,000 largest U.S. public companies based on total market capitalization which represent about 98% of all U.S incorporated equity securities. The index is rebalanced annually in June. |
| The index is a float-adjusted, market capitalization-weighted index that measures the performance of the mid-cap segment of the U.S. equity market. It includes approximately 800 of the smallest securities in the Russell 1000 Index. The index is rebalanced annually in June. |
Russell Midcap® Growth Index: | The index is a float-adjusted, market capitalization-weighted index that measures the performance of the mid-cap growth segment of the U.S. equity market. It includes those Russell Midcap Index companies with higher price-to-book ratios and higher forecasted growth rates. The index is rebalanced annually in June. |
Russell Midcap® Value Index: | The index is a float-adjusted, market capitalization-weighted index that measures the performance of the mid-cap value segment of the U.S. equity market. It includes those Russell Midcap Index companies with lower price-to-book ratios and lower forecasted growth rates. The index is rebalanced annually in June. |
| The index is a float-adjusted, market capitalization-weighted index that focuses on the large-cap segment of the U.S. equity market, and includes a significant portion of the total value of the market. |
Information About Your Fund’s Expenses (Unaudited)
As a Fund shareholder, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds (if applicable); and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees (if applicable), and other Fund expenses. This example is intended to help you understand your ongoing costs (in U.S. 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 February 28, 2023 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 indicated. You may use the information in this line, together with the amount you invested, to estimate the expenses you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section of the table under the heading entitled "Expenses Paid During the Period" to estimate the expenses you paid over the period. |
Hypothetical Example for Comparison Purposes: | The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return at 5% per year before expenses. This return is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a Fund versus other funds. To do so, compare the expenses shown in this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. |
Please note that the expenses in the table are meant to highlight your ongoing costs only and do not include any transaction costs, such as sales charges (loads) (if applicable). Therefore, the information under the heading "Hypothetical (5% annual return before expenses)" is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
Expense Example (Unaudited)
Neuberger Berman Equity Funds
| | HYPOTHETICAL (5% ANNUAL RETURN BEFORE EXPENSES) |
| Beginning
Account
Value
9/1/22 | Ending
Account
Value
2/28/23 | Expenses Paid
During the
9/1/22 – 2/28/23 | | Beginning
Account
Value
9/1/22 | Ending
Account
Value
2/28/23 | Expenses Paid
During the
Period(2)
9/1/22 – 2/28/23 | |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Emerging Markets Equity Fund |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Greater China Equity Fund |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
International Equity Fund |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Expense Example (Unaudited) (cont’d)
Neuberger Berman Equity Funds
| | HYPOTHETICAL (5% ANNUAL RETURN BEFORE EXPENSES) |
| Beginning Account Value 9/1/22 | Ending Account Value 2/28/23 | Expenses Paid During the Period(1) 9/1/22 – 2/28/23 | | Beginning Account Value 9/1/22 | Ending Account Value 2/28/23 | Expenses Paid During the Period(2) 9/1/22 – 2/28/23 | |
International Select Fund |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
International Small Cap Fund |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Expense Example (Unaudited) (cont’d)
Neuberger Berman Equity Funds
| | HYPOTHETICAL (5% ANNUAL RETURN BEFORE EXPENSES) |
| Beginning Account Value 9/1/22 | Ending Account Value 2/28/23 | Expenses Paid During the Period(1) 9/1/22 – 2/28/23 | | Beginning Account Value 9/1/22 | Ending Account Value 2/28/23 | Expenses Paid During the Period(2) 9/1/22 – 2/28/23 | |
Mid Cap Intrinsic Value Fund |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Multi-Cap Opportunities Fund |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| 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 181/365 (to reflect the one-half year period shown), unless otherwise indicated. |
| Hypothetical expenses are equal to the annualized expense ratios for each class, multiplied by the average account value over the period (assuming a 5% annual return), multiplied by 181/365 (to reflect the one-half year period shown). |
| Includes expenses of the Fund’s blocker (See Note A of the Notes to Consolidated Financial Statements). |
Legend February 28, 2023 (Unaudited)
Neuberger Berman Equity Funds
|
| = State Street Bank and Trust Company |
|
| = Private investment in public equity |
|
| = American Depositary Receipt |
| = Neuberger Berman Investment Advisers LLC |
| = Public Joint Stock Company |
Schedule of Investments Dividend Growth Fund^ (Unaudited)
February 28, 2023
| |
|
|
| | |
|
| | |
| PNC Financial Services Group, Inc. | |
| | |
|
| | |
| Cboe Global Markets, Inc. | |
| | |
| | |
|
| | |
|
| | |
|
| | |
Diversified Financial Services 1.0% |
| | |
Electronic Equipment, Instruments & Components 7.5% |
| | |
| | |
| Zebra Technologies Corp. Class A* | |
| | |
Energy Equipment & Services 1.3% |
| | |
|
| | |
| | |
| | |
Equity Real Estate Investment Trusts 2.0% |
| | |
| | |
| | |
Food & Staples Retailing 1.8% |
| | |
|
| Mondelez International, Inc. Class A | |
| Tootsie Roll Industries, Inc. | |
| | |
| |
Health Care Equipment & Supplies 2.8% |
| | |
| | |
| | |
Hotels, Restaurants & Leisure 2.7% |
| Marriott International, Inc. Class A | |
Industrial Conglomerates 2.0% |
| Honeywell International, Inc. | |
|
| | |
| Marsh & McLennan Cos., Inc. | |
| | |
|
| Automatic Data Processing, Inc. | |
Life Sciences Tools & Services 4.6% |
| Agilent Technologies, Inc. | |
| | |
| | |
|
| | |
| | |
| | |
|
| | |
|
| | |
| Wheaton Precious Metals Corp. | |
| | |
|
| | |
Oil, Gas & Consumable Fuels 2.5% |
| | |
|
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
Semiconductors & Semiconductor Equipment 11.7% |
| | |
See Notes to Financial Statements
Schedule of Investments Dividend Growth Fund^ (Unaudited) (cont’d)
| |
Semiconductors & Semiconductor Equipment – cont'd |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
|
| | |
Technology Hardware, Storage & Peripherals 2.7% |
| | |
Textiles, Apparel & Luxury Goods 2.4% |
| Cie Financiere Richemont SA Class A | |
| |
Transportation Infrastructure 1.3% |
| | |
Total Common Stocks (Cost $55,878,245) | |
|
Short-Term Investments 4.2% |
Investment Companies 4.2% |
| State Street Institutional Treasury Money Market Fund Premier Class, 4.42%(b)
(Cost $3,285,696) | |
Total Investments 99.8% (Cost $59,163,941) | |
Other Assets Less Liabilities 0.2% | |
| |
| Non-income producing security. |
| Security exempt from registration pursuant to Regulation S under the Securities Act of 1933, as amended. Regulation S applies to securities offerings that are made outside of the United States and do not involve directed selling efforts in the United States and as such may have restrictions on resale. Total value of all such securities at February 28, 2023 amounted to $1,029,734, which represents 1.3% of net assets of the Fund. |
| Represents 7-day effective yield as of February 28, 2023. |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Short-Term Investments and Other Assets—Net | | |
| | |
See Notes to Financial Statements
Schedule of Investments Dividend Growth Fund^ (Unaudited) (cont’d)
The following is a summary, categorized by Level (see Note A of the Notes to Financial Statements), of inputs used to value the Fund’s investments as of February 28, 2023:
| The Schedule of Investments provides information on the industry or sector categorization as well as a Positions by Country summary. |
^
A balance indicated with a "—", reflects either a zero balance or an amount that rounds to less than 1.
See Notes to Financial Statements
Schedule of Investments Emerging Markets Equity Fund^ (Unaudited)
February 28, 2023
| |
|
|
| B3 SA - Brasil Bolsa Balcao | |
| | |
| | |
| | |
| Pagseguro Digital Ltd. Class A* | |
| | |
| | |
|
| | |
|
| Sociedad Quimica y Minera de Chile SA ADR | |
|
| Alibaba Group Holding Ltd.* | |
| | |
| Bank of Ningbo Co. Ltd. Class A | |
| China Longyuan Power Group Corp. Ltd. H Shares | |
| China Mengniu Dairy Co. Ltd.* | |
| CITIC Securities Co. Ltd. Class A | |
| Geely Automobile Holdings Ltd. | |
| | |
| | |
| Jiangsu Changshu Rural Commercial Bank Co. Ltd. Class A | |
| Kweichow Moutai Co. Ltd. Class A | |
| LONGi Green Energy Technology Co. Ltd. Class A | |
| | |
| NARI Technology Co. Ltd. Class A | |
| Ping An Insurance Group Co. of China Ltd. Class A | |
| Shenzhen Topband Co. Ltd. Class A | |
| Sichuan Kelun Pharmaceutical Co. Ltd. Class A | |
| | |
| | |
| Tsingtao Brewery Co. Ltd. H Shares | |
| Wingtech Technology Co. Ltd. Class A | |
| |
|
| Wuxi NCE Power Co. Ltd. Class A | |
| | |
| Yifeng Pharmacy Chain Co. Ltd. Class A | |
| Zhejiang HangKe Technology, Inc. Co. Class A | |
| Zhejiang Juhua Co. Ltd. Class A | |
| | |
|
| Hong Kong Exchanges & Clearing Ltd. | |
|
| | |
|
| API Holdings Private Ltd.*#(c)(d) | |
| Apollo Hospitals Enterprise Ltd. | |
| Aptus Value Housing Finance India Ltd. | |
| | |
| | |
| | |
| | |
| | |
| | |
| Housing Development Finance Corp. Ltd. | |
| | |
| | |
| | |
| JB Chemicals & Pharmaceuticals Ltd. | |
| Motherson Sumi Wiring India Ltd. | |
| National Stock Exchange*#(c)(d) | |
| Pine Labs PTE Ltd.*#(c)(d) | |
| | |
| | |
| Sun Pharmaceutical Industries Ltd. | |
| Syrma SGS Technology Ltd.* | |
| | |
| | |
|
| | |
| Bank Negara Indonesia Persero Tbk PT | |
| | |
See Notes to Financial Statements
Schedule of Investments Emerging Markets Equity Fund^ (Unaudited) (cont’d)
| |
|
| Hana Financial Group, Inc. | |
| | |
| | |
| | |
| Samsung Electronics Co. Ltd. | |
| | |
| | |
| | |
| | |
|
| Galaxy Entertainment Group Ltd. | |
|
| Wal-Mart de Mexico SAB de CV | |
|
| | |
|
| | |
| | |
| | |
|
| | |
|
| | |
|
| | |
| | |
| | |
| Saudi Tadawul Group Holding Co. | |
| | |
|
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| Chunghwa Telecom Co. Ltd. | |
| | |
| | |
| Taiwan Semiconductor Manufacturing Co. Ltd. | |
| |
|
| Tong Hsing Electronic Industries Ltd. | |
| Uni-President Enterprises Corp. | |
| | |
| | |
|
| | |
| PTT Exploration & Production PCL | |
| | |
United Arab Emirates 2.2% |
| Americana Restaurants International PLC* | |
| | |
| | |
| Network International Holdings PLC*(b) | |
| | |
|
Total Common Stocks
(Cost $606,607,013) | |
|
|
| Gupshup, Inc. Ser. F*#(c)(d) | |
| Pine Labs PTE Ltd. Ser. 1*#(c)(d) | |
| Pine Labs PTE Ltd. Ser. A*#(c)(d) | |
| Pine Labs PTE Ltd. Ser. B*#(c)(d) | |
| Pine Labs PTE Ltd. Ser. B2*#(c)(d) | |
| Pine Labs PTE Ltd. Ser. C*#(c)(d) | |
| Pine Labs PTE Ltd. Ser. C1*#(c)(d) | |
| Pine Labs PTE Ltd. Ser. D*#(c)(d) | |
Total Preferred Stocks
(Cost $13,478,212) | |
|
|
Short-Term Investments 6.1% |
Investment Companies 6.1% |
| State Street Institutional Treasury Money Market Fund Premier Class, 4.42%(e)
(Cost $40,631,082) | |
Total Investments 99.8% (Cost $660,716,307) | |
Other Assets Less Liabilities 0.2% | |
| |
See Notes to Financial Statements
Schedule of Investments Emerging Markets Equity Fund^ (Unaudited) (cont’d)
| Non-income producing security. |
| Security represented in Units. |
| Security exempt from registration pursuant to Regulation S under the Securities Act of 1933, as amended. Regulation S applies to securities offerings that are made outside of the United States and do not involve directed selling efforts in the United States and as such may have restrictions on resale. Total value of all such securities at February 28, 2023 amounted to $24,347,725, which represents 3.6% of net assets of the Fund. |
| Value determined using significant unobservable inputs. |
| Security fair valued as of February 28, 2023 in accordance with procedures approved by the valuation designee. Total value of all such securities at February 28, 2023 amounted to $47,692,090, which represents 7.0% of net assets of the Fund. |
| Represents 7-day effective yield as of February 28, 2023. |
#
These securities have been deemed by Management to be illiquid, and are subject to restrictions on resale. At February 28, 2023, these securities amounted to $47,692,090, which represents 7.1% of net assets of the Fund. Acquisition dates shown with a range, if any, represent securities that were acquired over the period shown in the table.
| | | | Fair Value
Percentage
of Net Assets
as of
2/28/2023 |
API Holdings Private Ltd. | | | | |
Gupshup, Inc. Ser. F (Ser. F Preferred Shares) | | | | |
| | | | |
| | | | |
Pine Labs PTE Ltd. Ser. 1 (Ser. 1 Preferred Shares) | | | | |
Pine Labs PTE Ltd. Ser. A (Ser. A Preferred Shares) | | | | |
Pine Labs PTE Ltd. Ser. B (Ser. B Preferred Shares) | | | | |
Pine Labs PTE Ltd. Ser. B2 (Ser. B2 Preferred Shares) | | | | |
Pine Labs PTE Ltd. Ser. C (Ser. C Preferred Shares) | | | | |
Pine Labs PTE Ltd. Ser. C1 (Ser. C1 Preferred Shares) | | | | |
Pine Labs PTE Ltd. Ser. D (Ser. D Preferred Shares) | | | | |
| | | | |
See Notes to Financial Statements
Schedule of Investments Emerging Markets Equity Fund^ (Unaudited) (cont’d)
|
| | |
| | |
Semiconductors & Semiconductor Equipment | | |
Internet & Direct Marketing Retail | | |
| | |
Interactive Media & Services | | |
| | |
| | |
| | |
Oil, Gas & Consumable Fuels | | |
| | |
Technology Hardware, Storage & Peripherals | | |
Electronic Equipment, Instruments & Components | | |
| | |
Hotels, Restaurants & Leisure | | |
| | |
| | |
| | |
| | |
| | |
Diversified Telecommunication Services | | |
| | |
| | |
| | |
Wireless Telecommunication Services | | |
| | |
Independent Power and Renewable Electricity Producers | | |
Thrifts & Mortgage Finance | | |
Health Care Providers & Services | | |
| | |
| | |
| | |
Energy Equipment & Services | | |
Diversified Financial Services | | |
Real Estate Management & Development | | |
Short-Term Investments and Other Assets—Net | | |
| | |
See Notes to Financial Statements
Schedule of Investments Emerging Markets Equity Fund^ (Unaudited) (cont’d)
The following is a summary, categorized by Level (see Note A of the Notes to Financial Statements), of inputs used to value the Fund’s investments as of February 28, 2023:
| |
| The Schedule of Investments provides a geographic categorization as well as a Positions by Industry summary. |
| The following is a reconciliation between the beginning and ending balances of investments in which unobservable inputs (Level 3) were used in determining value: |
| Beginning
balance as
of 9/1/2022 | Accrued
discounts/
(premiums) | | Change
in unrealized
appreciation/
(depreciation) | | | | | | Net change in
unrealized
appreciation/
(depreciation)
from
investments
still held as of
2/28/2023 |
Investments in Securities: |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
(1) Quantitative Information about Level 3 Fair Value Measurements: |
| | | | | | Impact to
valuation
from
increase
in input(b) |
| | | Enterprise value
Revenue multiple(c) (EV/Revenue) | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | Enterprise value
Revenue multiple(c) (EV/Revenue) | | | |
| | | | | | |
| | | | | | |
(a) The weighted averages disclosed in the table above were weighted by relative fair value. |
(b) Represents the expected directional change in the fair value of the Level 3 investments that would result from an increase or decrease in the corresponding input. Significant changes in these inputs could result in significantly higher or lower fair value measurements. |
See Notes to Financial Statements
Schedule of Investments Emerging Markets Equity Fund^ (Unaudited) (cont’d)
(c) Represents amounts used when the reporting entity has determined that market participants would use such multiples when pricing the investments. |
^
A balance indicated with a "—", reflects either a zero balance or an amount that rounds to less than 1.
See Notes to Financial Statements
Schedule of Investments Equity Income Fund^ (Unaudited)
February 28, 2023
| |
|
|
| | |
| Raytheon Technologies Corp. | |
| | |
|
| Citizens Financial Group, Inc. | |
| | |
| PNC Financial Services Group, Inc.(a) | |
| | |
| | |
|
| | |
| | |
| | |
| | |
|
| | |
|
| | |
| Goldman Sachs Group, Inc. | |
| | |
| Virtu Financial, Inc. Class A | |
| | |
|
| | |
Construction & Engineering 2.8% |
| | |
| MDU Resources Group, Inc. | |
| | |
Construction Materials 1.5% |
| | |
| | |
| | |
|
| | |
Diversified Telecommunication Services 1.5% |
| | |
|
| | |
Electrical Equipment 4.2% |
| | |
| |
Electrical Equipment – cont'd |
| | |
| | |
Electronic Equipment, Instruments & Components 0.8% |
| | |
Equity Real Estate Investment Trusts 6.3% |
| Alexandria Real Estate Equities, Inc. | |
| Brixmor Property Group, Inc. | |
| | |
| | |
| | |
| | |
| | |
|
| | |
Health Care Equipment & Supplies 1.0% |
| | |
| | |
| | |
Hotels, Restaurants & Leisure 2.7% |
| | |
| | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
See Notes to Financial Statements
Schedule of Investments Equity Income Fund^ (Unaudited) (cont’d)
| |
Oil, Gas & Consumable Fuels 9.9% |
| | |
| | |
| | |
| Pioneer Natural Resources Co. | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
Semiconductors & Semiconductor Equipment 4.6% |
| | |
| | |
| | |
| | |
| | |
|
| | |
|
| | |
| |
Trading Companies & Distributors 1.7% |
| | |
Total Common Stocks (Cost $800,020,146) | |
| |
|
| |
| Alliant Energy Corp., 3.88%, due 3/15/2026(b)
(Cost $7,355,000) | |
| |
|
Short-Term Investments 3.2% |
Investment Companies 3.2% |
| State Street Institutional Treasury Money Market Fund Premier Class, 4.42%(c)
(Cost $34,019,204) | |
Total Investments 102.2% (Cost $841,394,350) | |
Liabilities Less Other Assets (2.2)%(d) | |
| |
| All or a portion of this security is pledged as collateral for options written. |
| Securities were purchased under Rule 144A of the Securities Act of 1933, as amended, or are otherwise restricted and, unless registered under the Securities Act of 1933 or exempted from registration, may only be sold to qualified institutional investors or may have other restrictions on resale. At February 28, 2023, these securities amounted to $7,299,838, which represents 0.7% of net assets of the Fund. |
| Represents 7-day effective yield as of February 28, 2023. |
| Includes the impact of the Fund’s open positions in derivatives at February 28, 2023. |
See Notes to Financial Statements
Schedule of Investments Equity Income Fund^ (Unaudited) (cont’d)
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Short-Term Investments and Other Liabilities—Net | | |
| | |
Derivative Instruments
Written option contracts ("options written")
At February 28, 2023, the Fund had outstanding options written as follows:
| | | | | |
|
|
| | | | | |
Trading Companies & Distributors |
| | | | | |
| | | | | |
|
|
| | | | | |
|
| | | | | |
|
| | | | | |
Energy Equipment & Services |
| | | | | |
|
| | | | | |
Health Care Equipment & Supplies |
| | | | | |
| | | | | |
| | | | | |
|
Wheaton Precious Metals Corp. | | | | | |
See Notes to Financial Statements
Schedule of Investments Equity Income Fund^ (Unaudited) (cont’d)
| | | | | |
Semiconductors & Semiconductor Equipment |
| | | | | |
Taiwan Semiconductor Manufacturing Co. Ltd. | | | | | |
| | | | | |
| | | | | |
Total options written (premium received $408,169) | |
| |
| Value determined using significant unobservable inputs. |
| Security fair valued as of February 28, 2023 in accordance with procedures approved by the valuation designee. |
For the six months ended February 28, 2023, the average market value for the months where the Fund had options written outstanding was $(246,882). At February 28, 2023, the Fund had securities pledged in the amount of $31,174,826 to cover collateral requirements for options written.
The following is a summary, categorized by Level (see Note A of the Notes to Financial Statements), of inputs used to value the Fund’s investments as of February 28, 2023:
| The Schedule of Investments provides information on the industry or sector categorization as well as a Positions by Country summary. |
The following is a summary, categorized by Level (see Note A of the Notes to Financial Statements), of inputs used to value the Fund’s derivatives as of February 28, 2023:
Other Financial Instruments | | | | |
| | | | |
| | | | |
| | | | |
See Notes to Financial Statements
Schedule of Investments Equity Income Fund^ (Unaudited) (cont’d)
| The following is a reconciliation between the beginning and ending balances of derivative investments in which unobservable inputs (Level 3) were used in determining value: |
| Beginning
balance as
of 9/1/2022 | Accrued
discounts/
(premiums) | | Change
in unrealized
appreciation/
(depreciation) | Purchases/
Closing
of options | | | | | Net change in
unrealized
appreciation/
(depreciation)
from
investments
still held as of
2/28/2023 |
Other Financial Instruments |
| | | | | | | | | | |
| | | | | | | | | | |
(1) At February 28, 2023, these investments were valued in accordance with procedures approved by the valuation designee. These investments did not have a material impact on the Fund's net assets and, therefore, disclosure of unobservable inputs used in formulating valuations is not presented. |
^
A balance indicated with a "—", reflects either a zero balance or an amount that rounds to less than 1.
See Notes to Financial Statements
Schedule of Investments Focus Fund^ (Unaudited)
February 28, 2023
| |
|
|
| | |
|
| | |
|
| | |
| | |
| | |
|
| Constellation Brands, Inc. Class A | |
| | |
| | |
|
| | |
|
| Arctic Wolf Networks, Inc.*#(a)(b) | |
Diversified Telecommunication Services 3.3% |
| | |
|
| | |
|
| Activision Blizzard, Inc. | |
| Liberty Media Corp.-Liberty Formula One Class C* | |
| | |
| | |
| | |
Health Care Equipment & Supplies 2.0% |
| | |
Health Care Providers & Services 4.5% |
| | |
| | |
| | |
|
| | |
| | |
| | |
Internet & Direct Marketing Retail 6.6% |
| | |
| | |
| | |
| |
|
| | |
| | |
| | |
| | |
Life Sciences Tools & Services 1.2% |
| Thermo Fisher Scientific, Inc. | |
|
| | |
Oil, Gas & Consumable Fuels 2.6% |
| | |
| | |
| | |
|
| | |
|
| | |
|
| Canadian National Railway Co. | |
| Canadian Pacific Railway Ltd. | |
| | |
| | |
| | |
Semiconductors & Semiconductor Equipment 3.6% |
| | |
| | |
| Taiwan Semiconductor Manufacturing Co. Ltd. ADR | |
| | |
|
| Constellation Software, Inc. | |
| | |
| | |
| | |
| | |
|
| Floor & Decor Holdings, Inc. Class A* | |
| | |
| | |
Technology Hardware, Storage & Peripherals 0.5% |
| | |
Textiles, Apparel & Luxury Goods 3.8% |
| | |
See Notes to Financial Statements
Schedule of Investments Focus Fund^ (Unaudited) (cont’d)
| |
Textiles, Apparel & Luxury Goods – cont'd |
| LVMH Moet Hennessy Louis Vuitton SE | |
| | |
Wireless Telecommunication Services 3.5% |
| | |
|
Total Common Stocks (Cost $515,072,728) | |
|
Internet & Direct Marketing Retail 0.2% | |
| Fabletics LLC, Ser. G*#(a)(b) | |
| |
| Druva, Inc., Ser. 5*#(a)(b) | |
| |
| Videoamp, Inc., Ser. F1*#(a)(b) | |
Total Preferred Stocks (Cost $2,999,995) | |
| |
|
Short-Term Investments 5.4% |
Investment Companies 5.4% |
| State Street Institutional U.S. Government Money Market Fund Premier Class, 4.43%(c)
(Cost $32,236,911) | |
Total Investments 99.9% (Cost $550,309,634) | |
Other Assets Less Liabilities 0.1% | |
| |
| Non-income producing security. |
| Value determined using significant unobservable inputs. |
| Security fair valued as of February 28, 2023 in accordance with procedures approved by the valuation designee. Total value of all such securities at February 28, 2023 amounted to $3,999,987, which represents 0.7% of net assets of the Fund. |
| Represents 7-day effective yield as of February 28, 2023. |
#
These securities have been deemed by Management to be illiquid, and are subject to restrictions on resale. At February 28, 2023, these securities amounted to $3,999,987, which represents 0.7% of net assets of the Fund. Acquisition dates shown with a range, if any, represent securities that were acquired over the period shown in the table.
| | | | Fair Value
Percentage
of Net Assets
as of
2/28/2023 |
Arctic Wolf Networks, Inc. | | | | |
Druva, Inc. (Ser. 5 Preferred Shares) | | | | |
Fabletics LLC (Ser. G Preferred Shares) | | | | |
Videoamp, Inc. (Ser. F1 Preferred Shares) | | | | |
| | | | |
See Notes to Financial Statements
Schedule of Investments Focus Fund^ (Unaudited) (cont’d)
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Short-Term Investments and Other Assets—Net | | |
| | |
The following is a summary, categorized by Level (see Note A of the Notes to Financial Statements), of inputs used to value the Fund’s investments as of February 28, 2023:
| The Schedule of Investments provides information on the industry or sector categorization as well as a Positions by Country summary. |
| The following is a reconciliation between the beginning and ending balances of investments in which unobservable inputs (Level 3) were used in determining value: |
| Beginning
balance as
of 9/1/2022 | Accrued
discounts/
(premiums) | | Change
in unrealized
appreciation/
(depreciation) | | | | | | Net change in
unrealized
appreciation/
(depreciation)
from
investments
still held as of
2/28/2023 |
Investments in Securities: |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
See Notes to Financial Statements
Schedule of Investments Focus Fund^ (Unaudited) (cont’d)
(1) Quantitative Information about Level 3 Fair Value Measurements: |
| | | | | | Impact to
valuation
from
increase
in input(b) |
| | | Enterprise value/
Revenue multiple(c) (EV/Revenue) | | | |
| | | Enterprise value/
Revenue multiple(c) (EV/Revenue) | | | |
(a) The weighted averages disclosed in the table above were weighted by relative fair value. |
(b) Represents the expected directional change in the fair value of the Level 3 investments that would result from an increase or decrease in the corresponding input. Significant changes in these inputs could result in significantly higher or lower fair value measurements. |
(c) Represents amounts used when the reporting entity has determined that market participants would use such multiples when pricing the investments. |
^
A balance indicated with a "—", reflects either a zero balance or an amount that rounds to less than 1.
See Notes to Financial Statements
Schedule of Investments Genesis Fund^ (Unaudited)
February 28, 2023
| |
|
Air Freight & Logistics 1.0% |
| | |
|
| Fox Factory Holding Corp.* | |
| | |
| | |
| | |
|
| | |
| | |
| Community Bank System, Inc. | |
| Cullen/Frost Bankers, Inc. | |
| | |
| First Financial Bankshares, Inc. | |
| | |
| | |
| Prosperity Bancshares, Inc. | |
| Stock Yards Bancorp, Inc. | |
| United Community Banks, Inc. | |
| | |
|
| | |
| | |
| | |
|
| Artisan Partners Asset Management, Inc. Class A | |
| Hamilton Lane, Inc. Class A | |
| | |
| MarketAxess Holdings, Inc. | |
| | |
|
| | |
| | |
| | |
| | |
Commercial Services & Supplies 2.9% |
| Driven Brands Holdings, Inc.* | |
| | |
| |
Commercial Services & Supplies – cont'd |
| | |
| | |
Communications Equipment 1.0% |
| NetScout Systems, Inc.*(a) | |
Construction & Engineering 1.9% |
| | |
Construction Materials 1.4% |
| | |
Containers & Packaging 0.9% |
| | |
|
| | |
Diversified Consumer Services 0.5% |
| Bright Horizons Family Solutions, Inc.* | |
Electronic Equipment, Instruments & Components 2.2% |
| | |
| Zebra Technologies Corp. Class A* | |
| | |
Energy Equipment & Services 1.8% |
| | |
| | |
| | |
| | |
Food & Staples Retailing 0.4% |
| Grocery Outlet Holding Corp.* | |
|
| | |
| | |
| | |
Health Care Equipment & Supplies 5.9% |
| | |
| | |
| | |
| UFP Technologies, Inc.*(a) | |
| West Pharmaceutical Services, Inc. | |
| | |
Health Care Providers & Services 1.7% |
| | |
Health Care Technology 0.5% |
| | |
See Notes to Financial Statements
Schedule of Investments Genesis Fund^ (Unaudited) (cont’d)
| |
Health Care Technology – cont'd |
| | |
| | |
Hotels, Restaurants & Leisure 1.1% |
| | |
|
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
|
| Jack Henry & Associates, Inc. | |
|
| | |
Life Sciences Tools & Services 3.1% |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
|
| | |
| Nexstar Media Group, Inc. Class A | |
| | |
| | |
| |
Oil, Gas & Consumable Fuels 2.5% |
| | |
| Sitio Royalties Corp. Class A | |
| | |
| | |
| | |
Professional Services 3.7% |
| | |
| | |
| | |
| | |
Real Estate Management & Development 1.5% |
| | |
Semiconductors & Semiconductor Equipment 6.7% |
| Advanced Energy Industries, Inc. | |
| | |
| Lattice Semiconductor Corp.* | |
| | |
| | |
| | |
|
| American Software, Inc. Class A(a) | |
| | |
| | |
| | |
| Manhattan Associates, Inc.* | |
| | |
| | |
| | |
| Tyler Technologies, Inc.* | |
| | |
| | |
|
| Asbury Automotive Group, Inc.* | |
| Floor & Decor Holdings, Inc. Class A* | |
| | |
| | |
Trading Companies & Distributors 2.5% |
| | |
| SiteOne Landscape Supply, Inc.* | |
See Notes to Financial Statements
Schedule of Investments Genesis Fund^ (Unaudited) (cont’d)
| |
Trading Companies & Distributors – cont'd |
| | |
| | |
| | |
Total Common Stocks (Cost $5,482,838,222) | |
|
Short-Term Investments 2.0% |
Investment Companies 2.0% |
| State Street Institutional Treasury Money Market Fund Premier Class, 4.42%(b) | |
| |
Investment Companies – cont'd |
| State Street Institutional Treasury Plus Money Market Fund Premier Class, 4.47%(b) | |
Total Short-Term Investments (Cost $206,589,761) | |
Total Investments 100.1% (Cost $5,689,427,983) | |
Liabilities Less Other Assets (0.1)% | |
| |
| Non-income producing security. |
| Affiliated company (see Note F of the Notes to Financial Statements). |
| Represents 7-day effective yield as of February 28, 2023. |
The following is a summary, categorized by Level (see Note A of the Notes to Financial Statements), of inputs used to value the Fund’s investments as of February 28, 2023:
| The Schedule of Investments provides information on the industry or sector categorization. |
^
A balance indicated with a "—", reflects either a zero balance or an amount that rounds to less than 1.
See Notes to Financial Statements
Schedule of Investments Global Real Estate Fund^ (Unaudited)
February 28, 2023
| |
|
|
| | |
| | |
| | |
|
| Canadian Apartment Properties REIT | |
| | |
| | |
|
| | |
| | |
| | |
|
| | |
|
| | |
| | |
| Sun Hung Kai Properties Ltd. | |
| | |
|
| | |
| Mitsubishi Estate Co. Ltd. | |
| | |
| Mitsui Fudosan Logistics Park, Inc. | |
| Nomura Real Estate Holdings, Inc. | |
| | |
|
| Mapletree Pan Asia Commercial Trust | |
| | |
| | |
|
| | |
|
| Great Portland Estates PLC | |
| Land Securities Group PLC | |
| | |
| | |
| | |
| | |
|
| American Homes 4 Rent Class A | |
| | |
| Apartment Income REIT Corp. | |
| |
|
| | |
| | |
| Digital Realty Trust, Inc. | |
| | |
| Equity LifeStyle Properties, Inc. | |
| | |
| Essex Property Trust, Inc. | |
| Extra Space Storage, Inc. | |
| Healthpeak Properties, Inc. | |
| | |
| | |
| | |
| | |
| Medical Properties Trust, Inc. | |
| | |
| | |
| | |
| Retail Opportunity Investments Corp. | |
| Rexford Industrial Realty, Inc. | |
| | |
| Simon Property Group, Inc. | |
| Spirit Realty Capital, Inc. | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Total Common Stocks
(Cost $6,631,816) | |
|
|
| Link REIT Expires 3/21/2023(c)
(Cost $—) | |
|
|
Short-Term Investments 2.1% |
Investment Companies 2.1% |
| State Street Institutional U.S. Government Money Market Fund Premier Class, 4.43%(d)
(Cost $134,972) | |
Total Investments 99.8% (Cost $6,766,788) | |
Other Assets Less Liabilities 0.2% | |
| |
See Notes to Financial Statements
Schedule of Investments Global Real Estate Fund^ (Unaudited) (cont’d)
| Security exempt from registration pursuant to Regulation S under the Securities Act of 1933, as amended. Regulation S applies to securities offerings that are made outside of the United States and do not involve directed selling efforts in the United States and as such may have restrictions on resale. Total value of all such securities at February 28, 2023 amounted to $143,715, which represents 2.2% of net assets of the Fund. |
| Represents less than 0.05% of net assets of the Fund. |
| Security fair valued as of February 28, 2023 in accordance with procedures approved by the valuation designee. Total value of all such securities at February 28, 2023 amounted to $754, which represents 0.0% of net assets of the Fund. |
| Represents 7-day effective yield as of February 28, 2023. |
|
| | |
| | |
Industrial & Office REITs | | |
| | |
Real Estate Holding & Development | | |
| | |
| | |
| | |
Short-Term Investments and Other Assets-Net | | |
| | |
The following is a summary, categorized by Level (see Note A of the Notes to Financial Statements), of inputs used to value the Fund’s investments as of February 28, 2023:
| The Schedule of Investments provides a geographic categorization as well as a Positions by Sector summary. |
^
A balance indicated with a "—", reflects either a zero balance or an amount that rounds to less than 1.
See Notes to Financial Statements
Schedule of Investments Greater China Equity Fund^ (Unaudited)
February 28, 2023
| |
|
Air Freight & Logistics 5.2% |
| Milkyway Chemical Supply Chain Service Co. Ltd. Class A | |
| ZTO Express Cayman, Inc. ADR | |
| | |
|
| China Merchants Bank Co. Ltd. H Shares | |
|
| China Resources Beer Holdings Co. Ltd. | |
|
| | |
|
| Jiangsu Eastern Shenghong Co. Ltd. Class A | |
| Satellite Chemical Co. Ltd. Class A | |
| Shandong Hualu Hengsheng Chemical Co. Ltd. Class A | |
| Wanhua Chemical Group Co. Ltd. Class A | |
| Yunnan Energy New Material Co. Ltd. Class A | |
| | |
Construction Materials 1.9% |
| China National Building Material Co. Ltd. H Shares | |
Electrical Equipment 2.2% |
| JL Mag Rare-Earth Co. Ltd. Class A | |
Electronic Equipment, Instruments & Components 5.5% |
| Luxshare Precision Industry Co. Ltd. Class A | |
| Shenzhen Sunlord Electronics Co. Ltd. Class A | |
| | |
|
| Inner Mongolia Yili Industrial Group Co. Ltd. Class A | |
Hotels, Restaurants & Leisure 2.0% |
| | |
| | |
| | |
|
| Haier Smart Home Co. Ltd. H Shares | |
| |
Household Durables – cont'd |
| | |
| Midea Group Co. Ltd. Class A | |
| | |
|
| China Pacific Insurance Group Co. Ltd. H Shares | |
Interactive Media & Services 3.8% |
| | |
Internet & Direct Marketing Retail 7.1% |
| Alibaba Group Holding Ltd.* | |
| | |
| | |
| | |
|
| Jiangsu Hengli Hydraulic Co. Ltd. Class A | |
| Shenzhen Inovance Technology Co. Ltd. Class A | |
| Zoomlion Heavy Industry Science and Technology Co. Ltd. Class A | |
| | |
|
| SITC International Holdings Co. Ltd. | |
|
| CSPC Pharmaceutical Group Ltd. | |
Real Estate Management & Development 3.7% |
| China Resources Land Ltd. | |
Semiconductors & Semiconductor Equipment 2.1% |
| Zhejiang Jingsheng Mechanical & Electrical Co. Ltd. Class A | |
|
| China Yongda Automobiles Services Holdings Ltd. | |
Textiles, Apparel & Luxury Goods 1.0% |
| | |
Total Investments 98.3% (Cost $31,249,463) | |
Other Assets Less Liabilities 1.7% | |
| |
See Notes to Financial Statements
Schedule of Investments Greater China Equity Fund^ (Unaudited) (cont’d)
| Non-income producing security. |
| Security exempt from registration pursuant to Regulation S under the Securities Act of 1933, as amended. Regulation S applies to securities offerings that are made outside of the United States and do not involve directed selling efforts in the United States and as such may have restrictions on resale. Total value of all such securities at February 28, 2023 amounted to $1,244,941, which represents 4.6% of net assets of the Fund. |
The following is a summary, categorized by Level (see Note A of the Notes to Financial Statements), of inputs used to value the Fund’s investments as of February 28, 2023:
| The Schedule of Investments provides information on the industry or sector categorization. |
^
A balance indicated with a "—", reflects either a zero balance or an amount that rounds to less than 1.
See Notes to Financial Statements
Schedule of Investments International Equity Fund^ (Unaudited)
February 28, 2023
| |
|
|
| | |
|
| | |
|
| | |
| | |
| | |
| | |
|
| Shenzhou International Group Holdings Ltd. | |
|
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| Techtronic Industries Co. Ltd. | |
| | |
|
| Bank of Ireland Group PLC | |
| | |
| | |
| |
|
| | |
| | |
|
| | |
|
| | |
| | |
| | |
| | |
| | |
| Koito Manufacturing Co. Ltd. | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
See Notes to Financial Statements
Schedule of Investments International Equity Fund^ (Unaudited) (cont’d)
| |
|
| | |
| | |
| London Stock Exchange Group PLC | |
| Petershill Partners PLC(a) | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $978,158,008) | |
|
| |
|
Short-Term Investments 4.0% |
Investment Companies 4.0% |
| State Street Institutional Treasury Money Market Fund Premier Class, 4.42%(c) | |
| State Street Navigator Securities Lending Government Money Market Portfolio, 4.59%(c)(d) | |
Total Short-Term Investments
(Cost $42,032,016) | |
Total Investments 101.0% (Cost $1,020,190,024) | |
Liabilities Less Other Assets (1.0)% | |
| |
| Non-income producing security. |
| Security exempt from registration pursuant to Regulation S under the Securities Act of 1933, as amended. Regulation S applies to securities offerings that are made outside of the United States and do not involve directed selling efforts in the United States and as such may have restrictions on resale. Total value of all such securities at February 28, 2023 amounted to $35,455,203, which represents 3.4% of net assets of the Fund. |
| All or a portion of this security is on loan at February 28, 2023. Total value of all such securities at February 28, 2023 amounted to $18,943,004, collateralized by cash collateral of $16,042,834 and non-cash (U.S. Treasury Securities) collateral of $3,807,167 for the Fund (see Note A of the Notes to Financial Statements). |
| Represents 7-day effective yield as of February 28, 2023. |
| Represents investment of cash collateral received from securities lending. |
|
| | |
| | |
| | |
| | |
| | |
| | |
Oil, Gas & Consumable Fuels | | |
| | |
See Notes to Financial Statements
Schedule of Investments International Equity Fund^ (Unaudited) (cont’d)
POSITIONS BY INDUSTRY (cont’d) |
| | |
Trading Companies & Distributors | | |
| | |
Life Sciences Tools & Services | | |
| | |
| | |
Semiconductors & Semiconductor Equipment | | |
| | |
| | |
Textiles, Apparel & Luxury Goods | | |
Health Care Equipment & Supplies | | |
| | |
| | |
| | |
Energy Equipment & Services | | |
| | |
Hotels, Restaurants & Leisure | | |
| | |
| | |
| | |
| | |
Wireless Telecommunication Services | | |
Diversified Telecommunication Services | | |
Electronic Equipment, Instruments & Components | | |
| | |
Real Estate Management & Development | | |
Short-Term Investments and Other Liabilities—Net | | |
| | |
The following is a summary, categorized by Level (see Note A of the Notes to Financial Statements), of inputs used to value the Fund’s investments as of February 28, 2023:
| The Schedule of Investments provides a geographic categorization as well as a Positions by Industry summary. |
^
A balance indicated with a "—", reflects either a zero balance or an amount that rounds to less than 1.
See Notes to Financial Statements
Schedule of Investments International Select Fund^ (Unaudited)
February 28, 2023
| |
|
|
| | |
|
| | |
| | |
| | |
|
| Shenzhou International Group Holdings Ltd. | |
|
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| Techtronic Industries Co. Ltd. | |
| | |
|
| Bank of Ireland Group PLC | |
| | |
| | |
| | |
| | |
|
| | |
|
| | |
| |
|
| | |
| | |
| | |
| Koito Manufacturing Co. Ltd. | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| London Stock Exchange Group PLC | |
| Petershill Partners PLC(a) | |
| | |
| | |
| | |
See Notes to Financial Statements
Schedule of Investments International Select Fund^ (Unaudited) (cont’d)
| |
|
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $136,335,411) | |
|
|
Short-Term Investments 3.8% |
Investment Companies 3.8% |
| State Street Institutional Treasury Money Market Fund Premier Class, 4.42%(c) | |
| |
Investment Companies – cont'd |
| State Street Navigator Securities Lending Government Money Market Portfolio, 4.59%(c)(d) | |
Total Short-Term Investments
(Cost $5,404,970) | |
Total Investments 101.4% (Cost $141,740,381) | |
Liabilities Less Other Assets (1.4)% | |
| |
| Non-income producing security. |
| Security exempt from registration pursuant to Regulation S under the Securities Act of 1933, as amended. Regulation S applies to securities offerings that are made outside of the United States and do not involve directed selling efforts in the United States and as such may have restrictions on resale. Total value of all such securities at February 28, 2023 amounted to $4,682,668, which represents 3.3% of net assets of the Fund. |
| All or a portion of this security is on loan at February 28, 2023. Total value of all such securities at February 28, 2023 amounted to $2,573,803, collateralized by cash collateral of $2,459,156 and non-cash (U.S. Treasury Securities) collateral of $231,280 for the Fund (see Note A of the Notes to Financial Statements). |
| Represents 7-day effective yield as of February 28, 2023. |
| Represents investment of cash collateral received from securities lending. |
See Notes to Financial Statements
Schedule of Investments International Select Fund^ (Unaudited) (cont’d)
|
| | |
| | |
| | |
| | |
| | |
| | |
Oil, Gas & Consumable Fuels | | |
| | |
| | |
Trading Companies & Distributors | | |
Life Sciences Tools & Services | | |
| | |
Semiconductors & Semiconductor Equipment | | |
| | |
| | |
Textiles, Apparel & Luxury Goods | | |
Health Care Equipment & Supplies | | |
| | |
Energy Equipment & Services | | |
| | |
| | |
| | |
| | |
| | |
Hotels, Restaurants & Leisure | | |
| | |
| | |
| | |
Wireless Telecommunication Services | | |
Diversified Telecommunication Services | | |
| | |
Short-Term Investments and Other Liabilities—Net | | |
| | |
The following is a summary, categorized by Level (see Note A of the Notes to Financial Statements), of inputs used to value the Fund’s investments as of February 28, 2023:
| The Schedule of Investments provides a geographic categorization as well as a Positions by Industry summary. |
^
A balance indicated with a "—", reflects either a zero balance or an amount that rounds to less than 1.
See Notes to Financial Statements
Schedule of Investments International Small Cap Fund^ (Unaudited)
February 28, 2023
| |
|
|
| | |
| Corporate Travel Management Ltd. | |
| | |
| | |
| | |
| | |
|
| | |
| Shurgard Self Storage Ltd. | |
| | |
|
| Bank of NT Butterfield & Son Ltd. | |
|
| | |
|
| Colliers International Group, Inc. | |
| Descartes Systems Group, Inc.* | |
| | |
| | |
|
| | |
| | |
| | |
|
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
|
| | |
| |
|
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| Casio Computer Co. Ltd.(a) | |
| Daiei Kankyo Co. Ltd.*(a) | |
| | |
| | |
| | |
| | |
| | |
| Nihon Parkerizing Co. Ltd. | |
| | |
| | |
| | |
| Prestige International, Inc. | |
| | |
| | |
| | |
| Shinnihonseiyaku Co. Ltd.* | |
| SHO-BOND Holdings Co. Ltd.(a) | |
| | |
| Simplex Holdings, Inc.*(a) | |
| Sun Frontier Fudousan Co. Ltd. | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| NICE Information Service Co. Ltd.* | |
| | |
|
| | |
| | |
| | |
|
| | |
| | |
| | |
See Notes to Financial Statements
Schedule of Investments International Small Cap Fund^ (Unaudited) (cont’d)
| |
|
| | |
| | |
|
| | |
|
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| Accelleron Industries AG* | |
| | |
| Bossard Holding AG Class A | |
| Burckhardt Compression Holding AG | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
|
| | |
United Arab Emirates 0.4% |
| Network International Holdings PLC*(b) | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $2,998,858) | |
|
|
Short-Term Investments 7.6% |
Investment Companies 7.6% |
| State Street Institutional Treasury Money Market Fund Premier Class, 4.42%(c) | |
| State Street Navigator Securities Lending Government Money Market Portfolio, 4.59%(c)(d) | |
Total Short-Term Investments
(Cost $250,176) | |
Total Investments 98.2% (Cost $3,249,034) | |
Other Assets Less Liabilities 1.8% | |
| |
| Non-income producing security. |
| All or a portion of this security is on loan at February 28, 2023. Total value of all such securities at February 28, 2023 amounted to $252,119, collateralized by cash collateral of $29,870 and non-cash (U.S. Treasury Securities) collateral of $237,903 for the Fund (see Note A of the Notes to Financial Statements). |
| Security exempt from registration pursuant to Regulation S under the Securities Act of 1933, as amended. Regulation S applies to securities offerings that are made outside of the United States and do not involve directed selling efforts in the United States and as such may have restrictions on resale. Total value of all such securities at February 28, 2023 amounted to $228,602, which represents 6.9% of net assets of the Fund. |
| Represents 7-day effective yield as of February 28, 2023. |
| Represents investment of cash collateral received from securities lending. |
See Notes to Financial Statements
Schedule of Investments International Small Cap Fund^ (Unaudited) (cont’d)
|
| | |
| | |
Electronic Equipment, Instruments & Components | | |
| | |
Commercial Services & Supplies | | |
| | |
Real Estate Management & Development | | |
| | |
Health Care Equipment & Supplies | | |
| | |
Construction & Engineering | | |
| | |
| | |
| | |
| | |
Trading Companies & Distributors | | |
| | |
| | |
| | |
| | |
| | |
Health Care Providers & Services | | |
| | |
Life Sciences Tools & Services | | |
Textiles, Apparel & Luxury Goods | | |
Diversified Financial Services | | |
| | |
Thrifts & Mortgage Finance | | |
| | |
Equity Real Estate Investment Trusts | | |
Energy Equipment & Services | | |
Hotels, Restaurants & Leisure | | |
| | |
| | |
| | |
| | |
| | |
Oil, Gas & Consumable Fuels | | |
Semiconductors & Semiconductor Equipment | | |
Short-Term Investments and Other Assets—Net | | |
| | |
See Notes to Financial Statements
Schedule of Investments International Small Cap Fund^ (Unaudited) (cont’d)
The following is a summary, categorized by Level (see Note A of the Notes to Financial Statements), of inputs used to value the Fund’s investments as of February 28, 2023:
| The Schedule of Investments provides a geographic categorization as well as a Positions by Industry summary. |
^
A balance indicated with a "—", reflects either a zero balance or an amount that rounds to less than 1.
See Notes to Financial Statements
Schedule of Investments Intrinsic Value Fund^ (Unaudited)
February 28, 2023
| |
|
|
| | |
|
| | |
| | |
| | |
| Huntington Bancshares, Inc. | |
| Texas Capital Bancshares, Inc.* | |
| | |
|
| Resideo Technologies, Inc.* | |
Commercial Services & Supplies 4.4% |
| | |
| | |
| KAR Auction Services, Inc.* | |
| | |
| | |
Communications Equipment 7.0% |
| | |
| | |
| | |
| Ribbon Communications, Inc.*(a) | |
| | |
| | |
| | |
Construction & Engineering 1.4% |
| | |
| | |
| | |
|
| Bread Financial Holdings, Inc. | |
Containers & Packaging 4.5% |
| | |
| | |
| | |
Electrical Equipment 1.8% |
| Babcock & Wilcox Enterprises, Inc.* | |
| Bloom Energy Corp. Class A* | |
| | |
Electronic Equipment, Instruments & Components 3.8% |
| | |
| |
Electronic Equipment, Instruments & Components – cont'd |
| Innoviz Technologies Ltd.* | |
| | |
| | |
| | |
| Teledyne Technologies, Inc.* | |
| | |
Energy Equipment & Services 3.6% |
| | |
| Oil States International, Inc.* | |
| Patterson-UTI Energy, Inc. | |
| | |
| TETRA Technologies, Inc.* | |
| | |
|
| Lions Gate Entertainment Corp. Class B* | |
Equity Real Estate Investment Trusts 0.7% |
| | |
| | |
| | |
|
| Hain Celestial Group, Inc.* | |
| | |
| | |
Health Care Equipment & Supplies 4.4% |
| | |
| | |
| | |
| Cardiovascular Systems, Inc.* | |
| | |
| | |
| OraSure Technologies, Inc.* | |
| | |
| | |
Health Care Providers & Services 3.8% |
| Acadia Healthcare Co., Inc.* | |
| | |
| | |
| | |
Hotels, Restaurants & Leisure 3.4% |
| International Game Technology PLC | |
| SeaWorld Entertainment, Inc.* | |
| | |
See Notes to Financial Statements
Schedule of Investments Intrinsic Value Fund^ (Unaudited) (cont’d)
| |
|
| Tempur Sealy International, Inc. | |
Independent Power and Renewable Electricity |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
Life Sciences Tools & Services 1.3% |
| Charles River Laboratories International, Inc.* | |
| | |
| | |
|
| | |
| Markforged Holding Corp.* | |
| | |
| | |
|
| | |
|
| | |
Oil, Gas & Consumable Fuels 2.9% |
| | |
| | |
| | |
|
| Amneal Pharmaceuticals, Inc.* | |
Professional Services 3.1% |
| | |
Semiconductors & Semiconductor Equipment 7.8% |
| | |
| | |
| MACOM Technology Solutions Holdings, Inc.* | |
| | |
| | |
| | |
| |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
Technology Hardware, Storage & Peripherals 1.6% |
| | |
| | |
| | |
Trading Companies & Distributors 1.8% |
| | |
Total Common Stocks (Cost $1,235,868,415) | |
| |
|
Communications Equipment 1.4% | |
| Infinera Corp., 2.50%, due 3/1/2027 | |
| Infinera Corp., 3.75%, due 8/1/2028(c) | |
| | |
| |
| Ion Geophysical, 8.00%, due 12/15/2025(e)(f)(g)
| |
Total Convertible Bonds (Cost $16,804,000) | |
See Notes to Financial Statements
Schedule of Investments Intrinsic Value Fund^ (Unaudited) (cont’d)
| |
|
Short-Term Investments 4.6% |
Investment Companies 4.6% |
| State Street Institutional Treasury Money Market Fund Premier Class, 4.42%(h)
(Cost $69,020,065) | |
Total Investments 100.1% (Cost $1,321,692,480) | |
Liabilities Less Other Assets (0.1)% | |
| |
| Non-income producing security. |
| Security acquired via a PIPE transaction. |
| Affiliated company (see Note F of the Notes to Financial Statements). |
| Securities were purchased under Rule 144A of the Securities Act of 1933, as amended, or are otherwise restricted and, unless registered under the Securities Act of 1933 or exempted from registration, may only be sold to qualified institutional investors or may have other restrictions on resale. At February 28, 2023, these securities amounted to $9,697,500, which represents 0.6% of net assets of the Fund. |
| Represents less than 0.05% of net assets of the Fund. |
| |
| Value determined using significant unobservable inputs. |
| Security fair valued as of February 28, 2023 in accordance with procedures approved by the valuation designee. Total value of all such securities at February 28, 2023 amounted to $0, which represents 0.0% of net assets of the Fund. |
| Represents 7-day effective yield as of February 28, 2023. |
The following is a summary, categorized by Level (see Note A of the Notes to Financial Statements), of inputs used to value the Fund’s investments as of February 28, 2023:
| The Schedule of Investments provides information on the industry or sector categorization. |
See Notes to Financial Statements
Schedule of Investments Intrinsic Value Fund^ (Unaudited) (cont’d)
| The following is a reconciliation between the beginning and ending balances of investments in which unobservable inputs (Level 3) were used in determining value: |
| Beginning
balance as
of 9/1/2022 | Accrued
discounts/
(premiums) | | Change
in unrealized
appreciation/
(depreciation) | | | | | | Net change in
unrealized
appreciation/
(depreciation)
from
investments
still held as of
2/28/2023 |
Investments in Securities: |
| | | | | | | | | | |
| | | | | | | | | | |
(1) At February 28, 2023, these investments were valued in accordance with procedures approved by the valuation designee. These investments did not have a material impact on the Fund's net assets and, therefore, disclosure of unobservable inputs used in formulating valuations is not presented. |
^
A balance indicated with a "—", reflects either a zero balance or an amount that rounds to less than 1.
See Notes to Financial Statements
Consolidated Schedule of Investments Large Cap Growth Fund†^ (Unaudited)
February 28, 2023
| |
|
|
| | |
|
| | |
|
| | |
| | |
| | |
Commercial Services & Supplies 1.6% |
| | |
|
| Arctic Wolf Networks, Inc.*#(a)(b) | |
Containers & Packaging 0.7% |
| | |
|
| | |
Electronic Equipment, Instruments & Components 4.1% |
| | |
| | |
| | |
|
| Activision Blizzard, Inc. | |
| | |
| | |
| | |
Equity Real Estate Investment Trusts 1.2% |
| | |
Food & Staples Retailing 2.8% |
| | |
| | |
| | |
Health Care Equipment & Supplies 1.2% |
| | |
Health Care Providers & Services 3.1% |
| | |
Hotels, Restaurants & Leisure 2.0% |
| | |
| Sweetgreen, Inc. Class A* | |
| | |
|
| | |
| |
Interactive Media & Services 6.4% |
| | |
| Meta Platforms, Inc. Class A* | |
| | |
Internet & Direct Marketing Retail 10.1% |
| | |
| | |
| Fanatics Holdings, Inc. Class A*#(a)(b) | |
| | |
|
| | |
| | |
| | |
| | |
Life Sciences Tools & Services 2.0% |
| Thermo Fisher Scientific, Inc. | |
|
| | |
Oil, Gas & Consumable Fuels 0.2% |
| Venture Global LNG, Inc.*#(a)(b) | |
|
| | |
Professional Services 1.9% |
| | |
|
| | |
Semiconductors & Semiconductor Equipment 4.7% |
| | |
| | |
| | |
|
| | |
| | |
| Grammarly, Inc. Class A*#(a)(b) | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
See Notes to Consolidated Financial Statements
Consolidated Schedule of Investments Large Cap Growth Fund†^ (Unaudited) (cont’d)
| |
Specialty Retail – cont'd |
| | |
| | |
Technology Hardware, Storage & Peripherals 7.1% |
| | |
Textiles, Apparel & Luxury Goods 1.6% |
| | |
|
Total Common Stocks (Cost $1,097,557,465) | |
|
| |
| | |
Internet & Direct Marketing Retail 0.5% | |
| Fabletics LLC, Ser. G*#(a)(b) | |
| Savage X, Inc., Ser. C*#(a)(b) | |
| | |
| |
| Druva, Inc., Ser. 4*#(a)(b) | |
| Druva, Inc., Ser. 5*#(a)(b) | |
| | |
| |
| Grammarly, Inc., Ser. 3*#(a)(b) | |
| Signifyd, Inc., Ser. Seed*#(a)(b) | |
| Signifyd, Inc., Ser. A*#(a)(b) | |
| Videoamp, Inc., Ser. F1*#(a)(b) | |
| | |
Total Preferred Stocks (Cost $20,934,540) | |
| |
Master Limited Partnerships and Limited Partnerships 1.3% |
Oil, Gas & Consumable Fuels 1.3% | |
| Enterprise Products Partners L.P.
(Cost $19,366,775) | |
| |
|
| |
| Whole Earth Brands, Inc. Expires 6/25/2025* (Cost $204,203) | |
|
Short-Term Investments 0.6% |
Investment Companies 0.6% |
| State Street Institutional Treasury Money Market Fund Premier Class, 4.42%(f) | |
| State Street Navigator Securities Lending Government Money Market Portfolio, 4.59%(f)(g) | |
Total Short-Term Investments (Cost $9,063,162) | |
Total Investments 100.2% (Cost $1,147,126,145) | |
Liabilities Less Other Assets (0.2)% | |
| |
| Non-income producing security. |
| Value determined using significant unobservable inputs. |
| Security fair valued as of February 28, 2023 in accordance with procedures approved by the valuation designee. Total value of all such securities at February 28, 2023 amounted to $124,993,985, which represents 7.8% of net assets of the Fund. |
| All or a portion of this security is on loan at February 28, 2023. Total value of all such securities at February 28, 2023 amounted to $4,015,018 for the Fund (see Note A of the Notes to Financial Statements). |
| Security represented in Units. |
| Represents less than 0.05% of net assets of the Fund. |
| Represents 7-day effective yield as of February 28, 2023. |
| Represents investment of cash collateral received from securities lending. |
See Notes to Consolidated Financial Statements
Consolidated Schedule of Investments Large Cap Growth Fund†^ (Unaudited) (cont’d)
#
These securities have been deemed by Management to be illiquid, and are subject to restrictions on resale. At February 28, 2023, these securities amounted to $124,993,985, which represents 7.8% of net assets of the Fund. Acquisition dates shown with a range, if any, represent securities that were acquired over the period shown in the table.
| | | | Fair Value
Percentage
of Net Assets
as of
2/28/2023 |
A24 Films LLC (Preferred Units) | | | | |
Arctic Wolf Networks, Inc. | | | | |
Druva, Inc. (Ser. 4 Preferred Shares) | | | | |
Druva, Inc. (Ser. 5 Preferred Shares) | | | | |
Fabletics LLC (Ser. G Preferred Shares) | | | | |
Fanatics Holdings, Inc. Class A | | | | |
| | | | |
Grammarly, Inc. (Ser. 3 Preferred Shares) | | | | |
Savage X, Inc. (Ser. C Preferred Shares) | | | | |
Signifyd, Inc. (Ser. Seed Preferred Shares) | | | | |
Signifyd, Inc. (Ser. A Preferred Shares) | | | | |
| | | | |
Videoamp, Inc. (Ser. F1 Preferred Shares) | | | | |
| | | | |
Derivative Instruments
Written option contracts ("options written")
At February 28, 2023, the Fund did not have any outstanding options written.
For the six months ended February 28, 2023, the average market value for the months where the Fund had options written outstanding was $(11,369).
See Notes to Consolidated Financial Statements
Consolidated Schedule of Investments Large Cap Growth Fund†^ (Unaudited) (cont’d)
The following is a summary, categorized by Level (see Note A of the Notes to Financial Statements), of inputs used to value the Fund’s investments as of February 28, 2023:
| | | | |
| | | | |
| | | | |
| | | | |
Internet & Direct Marketing Retail | | | | |
Oil, Gas & Consumable Fuels | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Master Limited Partnerships and Limited Partnerships# | | | | |
| | | | |
| | | | |
| | | | |
| The Consolidated Schedule of Investments provides information on the industry or sector categorization. |
| The following is a reconciliation between the beginning and ending balances of investments in which unobservable inputs (Level 3) were used in determining value: |
| Beginning
balance as
of 9/1/2022 | Accrued
discounts/
(premiums) | | Change
in unrealized
appreciation/
(depreciation) | | | | | | Net change in
unrealized
appreciation/
(depreciation)
from
investments
still held as of
2/28/2023 |
Investments in Securities: |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
(1) Quantitative Information about Level 3 Fair Value Measurements: |
| | | | | | Impact to
valuation
from
increase
in input(b) |
| | | | | | |
| | | Enterprise value/
EBITDA multiple(c) (EV/EBITDA) | | | |
| | | Enterprise value
Revenue multiple(c) (EV/Revenue) | | | |
| | | Liquidation Preference Discount | | | |
| | | Enterprise value/
Revenue multiple(c) (EV/Revenue) | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | Enterprise value/
Revenue multiple(c) (EV/Revenue) | | | |
See Notes to Consolidated Financial Statements
Consolidated Schedule of Investments Large Cap Growth Fund†^ (Unaudited) (cont’d)
(a) The weighted averages disclosed in the table above were weighted by relative fair value. |
(b) Represents the expected directional change in the fair value of the Level 3 investments that would result from an increase or decrease in the corresponding input. Significant changes in these inputs could result in significantly higher or lower fair value measurements. |
(c) Represents amounts used when the reporting entity has determined that market participants would use such multiples when pricing the investments. |
†
Formerly Guardian Fund through September 30, 2022.
^
A balance indicated with a "—", reflects either a zero balance or an amount that rounds to less than 1.
See Notes to Consolidated Financial Statements
Schedule of Investments Large Cap Value Fund^ (Unaudited)
February 28, 2023
| |
|
|
| | |
| Raytheon Technologies Corp. | |
| | |
|
| | |
| | |
| | |
| PNC Financial Services Group, Inc. | |
| | |
| | |
| | |
|
| Constellation Brands, Inc. Class A | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| Regeneron Pharmaceuticals, Inc.* | |
| | |
|
| Johnson Controls Int'l PLC | |
|
| | |
| | |
| | |
| | |
|
| Air Products & Chemicals, Inc. | |
| | |
| | |
Diversified Financial Services 2.0% |
| Berkshire Hathaway, Inc. Class B* | |
Diversified Telecommunication Services 0.8% |
| Verizon Communications, Inc. | |
| |
|
| American Electric Power Co., Inc. | |
| | |
| | |
| | |
| | |
Electrical Equipment 1.4% |
| | |
Equity Real Estate Investment Trusts 0.3% |
| | |
Food & Staples Retailing 1.4% |
| | |
|
| Mondelez International, Inc. Class A | |
Health Care Equipment & Supplies 3.0% |
| | |
| | |
| Zimmer Biomet Holdings, Inc. | |
| | |
Health Care Providers & Services 2.1% |
| | |
| | |
| | |
Hotels, Restaurants & Leisure 1.2% |
| | |
|
| | |
Industrial Conglomerates 2.7% |
| | |
| | |
| Honeywell International, Inc. | |
| | |
|
| | |
| | |
| | |
|
| International Business Machines Corp. | |
Life Sciences Tools & Services 1.7% |
| | |
See Notes to Financial Statements
Schedule of Investments Large Cap Value Fund^ (Unaudited) (cont’d)
| |
Life Sciences Tools & Services – cont'd |
| Thermo Fisher Scientific, Inc. | |
| | |
|
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Wheaton Precious Metals Corp. | |
| | |
|
| | |
| | |
| | |
Oil, Gas & Consumable Fuels 7.6% |
| | |
| | |
| | |
| | |
| | |
|
| Estee Lauder Cos., Inc. Class A | |
|
| | |
| | |
| | |
| |
|
| | |
| | |
Semiconductors & Semiconductor Equipment 2.0% |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
|
| Philip Morris International, Inc. | |
Wireless Telecommunication Services 0.5% |
| | |
Total Common Stocks (Cost $11,307,480,690) | |
|
Short-Term Investments 4.8% |
Investment Companies 4.8% |
| State Street Institutional U.S. Government Money Market Fund Premier Class, 4.43%(b) | |
| State Street Navigator Securities Lending Government Money Market Portfolio, 4.59%(b)(c) | |
Total Short-Term Investments (Cost $609,691,933) | |
Total Investments 99.8% (Cost $11,917,172,623) | |
Other Assets Less Liabilities 0.2% | |
| |
| Non-income producing security. |
| All or a portion of this security is on loan at February 28, 2023. Total value of all such securities at February 28, 2023 amounted to $36,341,961, collateralized by cash collateral of $17,727,684 and non-cash (U.S. Treasury Securities) collateral of $19,123,709 for the Fund (see Note A of the Notes to Financial Statements). |
| Represents 7-day effective yield as of February 28, 2023. |
| Represents investment of cash collateral received from securities lending. |
See Notes to Financial Statements
Schedule of Investments Large Cap Value Fund^ (Unaudited) (cont’d)
The following is a summary, categorized by Level (see Note A of the Notes to Financial Statements), of inputs used to value the Fund’s investments as of February 28, 2023:
| The Schedule of Investments provides information on the industry or sector categorization. |
^
A balance indicated with a "—", reflects either a zero balance or an amount that rounds to less than 1.
See Notes to Financial Statements
Schedule of Investments Mid Cap Growth Fund^ (Unaudited)
February 28, 2023
| |
|
|
| | |
| | |
| | |
|
| | |
|
| | |
|
| Alnylam Pharmaceuticals, Inc.* | |
| | |
| Horizon Therapeutics PLC* | |
| Sarepta Therapeutics, Inc. | |
| | |
| | |
|
| Builders FirstSource, Inc.* | |
|
| Affiliated Managers Group, Inc. | |
| | |
| | |
| | |
|
| | |
Commercial Services & Supplies 3.5% |
| | |
| | |
| | |
Communications Equipment 3.0% |
| | |
| | |
| | |
Construction & Engineering 0.5% |
| | |
|
| | |
Electrical Equipment 1.6% |
| | |
Electronic Equipment, Instruments & Components 2.7% |
| Keysight Technologies, Inc.* | |
| |
Electronic Equipment, Instruments & Components – cont'd |
| Teledyne Technologies, Inc.* | |
| | |
Food & Staples Retailing 1.5% |
| BJ's Wholesale Club Holdings, Inc.* | |
Health Care Equipment & Supplies 6.4% |
| | |
| | |
| IDEXX Laboratories, Inc.* | |
| | |
| | |
| | |
Health Care Technology 0.7% |
| Veeva Systems, Inc. Class A* | |
Hotels, Restaurants & Leisure 5.0% |
| Chipotle Mexican Grill, Inc.* | |
| | |
| Marriott Vacations Worldwide Corp. | |
| | |
| | |
|
| Church & Dwight Co., Inc. | |
|
| | |
| Arthur J. Gallagher & Co. | |
| | |
Internet & Direct Marketing Retail 0.9% |
| | |
|
| | |
| | |
| | |
| | |
Life Sciences Tools & Services 5.5% |
| Agilent Technologies, Inc. | |
| | |
| Bio-Rad Laboratories, Inc. Class A* | |
| | |
| | |
|
| | |
| | |
| | |
See Notes to Financial Statements
Schedule of Investments Mid Cap Growth Fund^ (Unaudited) (cont’d)
| |
|
| Trade Desk, Inc. Class A* | |
Oil, Gas & Consumable Fuels 3.1% |
| | |
| | |
| | |
| | |
|
| Royalty Pharma PLC Class A | |
Professional Services 0.7% |
| | |
|
| Old Dominion Freight Line, Inc. | |
Semiconductors & Semiconductor Equipment 9.2% |
| | |
| Lattice Semiconductor Corp.* | |
| Monolithic Power Systems, Inc. | |
| | |
| SolarEdge Technologies, Inc. | |
| | |
|
| | |
| Cadence Design Systems, Inc.* | |
| Crowdstrike Holdings, Inc. Class A* | |
| | |
| Descartes Systems Group, Inc.* | |
| | |
| |
|
| Manhattan Associates, Inc.* | |
| Palo Alto Networks, Inc.* | |
| | |
| | |
| | |
|
| | |
| | |
| O'Reilly Automotive, Inc.* | |
| | |
| | |
| | |
| | |
| | |
Trading Companies & Distributors 2.9% |
| | |
| | |
| | |
Total Common Stocks (Cost $1,266,132,101) | |
|
Short-Term Investments 4.2% |
Investment Companies 4.2% |
| State Street Institutional U.S. Government Money Market Fund Premier Class, 4.43%(a)
(Cost $63,317,773) | |
Total Investments 99.2% (Cost $1,329,449,874) | |
Other Assets Less Liabilities 0.8% | |
| |
| Non-income producing security. |
| Represents 7-day effective yield as of February 28, 2023. |
The following is a summary, categorized by Level (see Note A of the Notes to Financial Statements), of inputs used to value the Fund’s investments as of February 28, 2023:
| The Schedule of Investments provides information on the industry or sector categorization. |
^
A balance indicated with a "—", reflects either a zero balance or an amount that rounds to less than 1.
See Notes to Financial Statements
Schedule of Investments Mid Cap Intrinsic Value Fund^ (Unaudited)
February 28, 2023
| |
|
|
| | |
|
| | |
|
| | |
| | |
| Huntington Bancshares, Inc. | |
| | |
| | |
| | |
|
| Molson Coors Brewing Co. Class B | |
|
| | |
| Fortune Brands Innovations, Inc. | |
| | |
| Resideo Technologies, Inc.* | |
| | |
|
| | |
Commercial Services & Supplies 1.9% |
| KAR Auction Services, Inc.* | |
| | |
| | |
Communications Equipment 2.8% |
| | |
| | |
| | |
Construction & Engineering 1.5% |
| | |
|
| Bread Financial Holdings, Inc. | |
Containers & Packaging 1.7% |
| | |
|
| | |
| | |
| | |
Electronic Equipment, Instruments & Components 3.5% |
| | |
| | |
| |
Electronic Equipment, Instruments & Components – cont'd |
| | |
| | |
Energy Equipment & Services 1.8% |
| | |
|
| Lions Gate Entertainment Corp. Class B* | |
Equity Real Estate Investment Trusts 1.9% |
| | |
|
| Hain Celestial Group, Inc.* | |
| | |
| | |
Health Care Equipment & Supplies 5.5% |
| | |
| Cardiovascular Systems, Inc.* | |
| | |
| Zimmer Biomet Holdings, Inc. | |
| | |
| | |
Health Care Providers & Services 2.0% |
| | |
| Pediatrix Medical Group, Inc.* | |
| | |
Hotels, Restaurants & Leisure 5.0% |
| International Game Technology PLC | |
| MGM Resorts International | |
| | |
| | |
Independent Power and Renewable Electricity |
| | |
| | |
| | |
|
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
See Notes to Financial Statements
Schedule of Investments Mid Cap Intrinsic Value Fund^ (Unaudited) (cont’d)
| |
|
| Allison Transmission Holdings, Inc. | |
| | |
| | |
|
| | |
Mortgage Real Estate Investment Trusts 1.8% |
| Starwood Property Trust, Inc. | |
|
| | |
|
| | |
Oil, Gas & Consumable Fuels 8.3% |
| | |
| | |
| | |
| | |
| | |
| | |
Professional Services 3.8% |
| Dun & Bradstreet Holdings, Inc. | |
| | |
| | |
Real Estate Management & Development 0.2% |
| | |
Semiconductors & Semiconductor Equipment 3.0% |
| | |
| | |
| | |
| |
|
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
Technology Hardware, Storage & Peripherals 0.6% |
| Pure Storage, Inc. Class A* | |
Trading Companies & Distributors 3.0% |
| | |
|
Total Common Stocks (Cost $45,941,426) | |
|
Diversified Consumer Services 0.1% | |
| OneSpaWorld Holdings Ltd. Expires 3/19/2024* (Cost $—) | |
|
Short-Term Investments 0.3% |
Investment Companies 0.3% |
| State Street Institutional U.S. Government Money Market Fund Premier Class, 4.43%(a)
(Cost $196,231) | |
Total Investments 100.0% (Cost $46,137,657) | |
Liabilities Less Other Assets (0.0)%(b) | |
| |
| Non-income producing security. |
| Represents 7-day effective yield as of February 28, 2023. |
| Represents less than 0.05% of net assets of the Fund. |
See Notes to Financial Statements
Schedule of Investments Mid Cap Intrinsic Value Fund^ (Unaudited) (cont’d)
The following is a summary, categorized by Level (see Note A of the Notes to Financial Statements), of inputs used to value the Fund’s investments as of February 28, 2023:
| The Schedule of Investments provides information on the industry or sector categorization. |
^
A balance indicated with a "—", reflects either a zero balance or an amount that rounds to less than 1.
See Notes to Financial Statements
Schedule of Investments Multi-Cap Opportunities Fund^ (Unaudited)
February 28, 2023
| |
|
|
| Raytheon Technologies Corp. | |
|
| | |
|
| | |
| | |
| Intercontinental Exchange, Inc. | |
| | |
|
| | |
Communications Equipment 3.3% |
| | |
Construction Materials 2.2% |
| | |
Containers & Packaging 6.2% |
| | |
| Graphic Packaging Holding Co. | |
| | |
Diversified Financial Services 6.3% |
| Apollo Global Management, Inc. | |
| Berkshire Hathaway, Inc. Class B* | |
| | |
Electrical Equipment 1.7% |
| Rockwell Automation, Inc. | |
|
| | |
| | |
| | |
Food & Staples Retailing 4.9% |
| BJ's Wholesale Club Holdings, Inc.* | |
| | |
| | |
|
| Mondelez International, Inc. Class A | |
| | |
| | |
Health Care Equipment & Supplies 1.9% |
| | |
| |
Health Care Providers & Services 3.4% |
| | |
Hotels, Restaurants & Leisure 6.6% |
| | |
| | |
| | |
| | |
|
| | |
Independent Power and Renewable Electricity |
| Brookfield Renewable Corp. Class A | |
|
| | |
Interactive Media & Services 4.1% |
| | |
Internet & Direct Marketing Retail 2.4% |
| | |
|
| | |
|
| | |
| | |
| | |
| | |
|
| | |
|
| | |
Professional Services 1.3% |
| | |
| | |
| | |
|
| | |
Semiconductors & Semiconductor Equipment 0.8% |
| | |
|
| | |
|
| | |
| | |
| | |
See Notes to Financial Statements
Schedule of Investments Multi-Cap Opportunities Fund^ (Unaudited) (cont’d)
| |
Technology Hardware, Storage & Peripherals 3.7% |
| | |
Textiles, Apparel & Luxury Goods 2.9% |
| | |
| | |
| | |
Wireless Telecommunication Services 2.9% |
| | |
Total Common Stocks (Cost $149,869,339) | |
|
Short-Term Investments 1.3% |
Investment Companies 1.3% |
| State Street Institutional Treasury Money Market Fund Premier Class, 4.42%(a)
(Cost $ 3,362,038) | |
Total Investments 100.6% (Cost $153,231,377) | |
Liabilities Less Other Assets (0.6)% | |
| |
| Non-income producing security. |
| Represents 7-day effective yield as of February 28, 2023. |
The following is a summary, categorized by Level (see Note A of the Notes to Financial Statements), of inputs used to value the Fund’s investments as of February 28, 2023:
| The Schedule of Investments provides information on the industry or sector categorization. |
^
A balance indicated with a "—", reflects either a zero balance or an amount that rounds to less than 1.
See Notes to Financial Statements
Schedule of Investments Real Estate Fund^ (Unaudited)
February 28, 2023
| |
|
|
| Apartment Income REIT Corp. | |
| | |
| Essex Property Trust, Inc. | |
| | |
| | |
|
| Digital Realty Trust, Inc. | |
| | |
| | |
|
| | |
| Spirit Realty Capital, Inc. | |
| | |
|
| Healthpeak Properties, Inc. | |
| Medical Properties Trust, Inc. | |
| | |
| | |
| | |
|
| EastGroup Properties, Inc. | |
| | |
| Rexford Industrial Realty, Inc. | |
| | |
|
| | |
| | |
| | |
| | |
|
| Equity LifeStyle Properties, Inc. | |
| | |
| | |
|
| | |
| |
|
| Simon Property Group, Inc. | |
|
| Extra Space Storage, Inc. | |
| | |
| | |
| | |
|
| | |
| | |
| Retail Opportunity Investments Corp. | |
| | |
|
| American Homes 4 Rent Class A | |
| | |
| | |
|
| | |
| | |
| | |
|
| | |
Total Common Stocks (Cost $991,858,640) | |
|
|
Short-Term Investments 3.1% |
Investment Companies 3.1% |
| State Street Institutional U.S. Government Money Market Fund Premier Class, 4.43%(a) (Cost $28,415,164) | |
Total Investments 100.0% (Cost $1,020,273,804) | |
Liabilities Less Other Assets (0.0)%(b) | |
| |
| Represents 7-day effective yield as of February 28, 2023. |
| Represents less than 0.05% of net assets of the Fund. |
See Notes to Financial Statements
Schedule of Investments Real Estate Fund^ (Unaudited) (cont’d)
The following is a summary, categorized by Level (see Note A of the Notes to Financial Statements), of inputs used to value the Fund’s investments as of February 28, 2023:
| The Schedule of Investments provides information on the industry or sector categorization. |
^
A balance indicated with a "—", reflects either a zero balance or an amount that rounds to less than 1.
See Notes to Financial Statements
Schedule of Investments Small Cap Growth Fund^ (Unaudited)
February 28, 2023
| |
|
|
| | |
|
| | |
|
| | |
| Fox Factory Holding Corp.* | |
| | |
|
| Texas Capital Bancshares, Inc.* | |
| | |
| | |
|
| | |
| | |
| | |
|
| Amicus Therapeutics, Inc.* | |
| Apellis Pharmaceuticals, Inc.* | |
| Arcutis Biotherapeutics, Inc.* | |
| Arrowhead Pharmaceuticals, Inc.* | |
| Beam Therapeutics, Inc.*(a) | |
| Blueprint Medicines Corp.* | |
| Cerevel Therapeutics Holdings, Inc.* | |
| Halozyme Therapeutics, Inc.* | |
| | |
| | |
| Karuna Therapeutics, Inc.* | |
| | |
| Prometheus Biosciences, Inc.* | |
| Ultragenyx Pharmaceutical, Inc.* | |
| | |
| | |
|
| | |
|
| Affiliated Managers Group, Inc. | |
| | |
| | |
|
| | |
| |
Commercial Services & Supplies 3.0% |
| Casella Waste Systems, Inc. Class A* | |
| | |
| | |
Communications Equipment 6.5% |
| | |
| | |
| | |
Construction & Engineering 2.8% |
| | |
| | |
| | |
Containers & Packaging 1.0% |
| Graphic Packaging Holding Co. | |
Diversified Consumer Services 0.7% |
| OneSpaWorld Holdings Ltd.* | |
Electrical Equipment 2.3% |
| | |
| Shoals Technologies Group, Inc. Class A* | |
| | |
Energy Equipment & Services 0.8% |
| | |
Food & Staples Retailing 1.5% |
| Performance Food Group Co.* | |
|
| | |
Health Care Equipment & Supplies 8.3% |
| | |
| Inspire Medical Systems, Inc.* | |
| iRhythm Technologies, Inc.* | |
| | |
| | |
| | |
| | |
| Treace Medical Concepts, Inc.* | |
| | |
Health Care Providers & Services 1.7% |
| | |
| Option Care Health, Inc.* | |
| | |
Health Care Technology 1.0% |
| | |
See Notes to Financial Statements
Schedule of Investments Small Cap Growth Fund^ (Unaudited) (cont’d)
| |
Hotels, Restaurants & Leisure 5.3% |
| | |
| | |
| Dutch Bros, Inc. Class A*(a) | |
| Marriott Vacations Worldwide Corp. | |
| | |
| | |
|
| | |
|
| | |
| Kinsale Capital Group, Inc. | |
| | |
|
| | |
| I3 Verticals, Inc. Class A* | |
| | |
Life Sciences Tools & Services 0.4% |
| | |
|
| | |
Oil, Gas & Consumable Fuels 4.3% |
| | |
| | |
| Magnolia Oil & Gas Corp. Class A | |
| | |
| | |
|
| Reata Pharmaceuticals, Inc. Class A* | |
Professional Services 2.4% |
| | |
| | |
| | |
|
| | |
Semiconductors & Semiconductor Equipment 5.7% |
| | |
| Lattice Semiconductor Corp.* | |
| MACOM Technology Solutions Holdings, Inc.* | |
| | |
| |
|
| | |
| Descartes Systems Group, Inc.* | |
| DoubleVerify Holdings, Inc.* | |
| | |
| Manhattan Associates, Inc.* | |
| | |
| Smartsheet, Inc. Class A* | |
| Sprout Social, Inc. Class A* | |
| | |
|
| Academy Sports & Outdoors, Inc. | |
| | |
| | |
Trading Companies & Distributors 5.2% |
| | |
| Applied Industrial Technologies, Inc. | |
| H&E Equipment Services, Inc. | |
| WESCO International, Inc.* | |
| | |
Total Common Stocks (Cost $299,160,714) | |
|
Short-Term Investments 8.3% |
Investment Companies 8.3% |
| State Street Institutional U.S. Government Money Market Fund Premier Class, 4.43%(b) | |
| State Street Navigator Securities Lending Government Money Market Portfolio, 4.59%(b)(c) | |
Total Short-Term Investments (Cost $28,158,478) | |
Total Investments 103.0% (Cost $327,319,192) | |
Liabilities Less Other Assets (3.0)% | |
| |
See Notes to Financial Statements
Schedule of Investments Small Cap Growth Fund^ (Unaudited) (cont’d)
| Non-income producing security. |
| All or a portion of this security is on loan at February 28, 2023. Total value of all such securities at February 28, 2023 amounted to $2,234,444, collateralized by cash collateral of $2,116,966 and non-cash (U.S. Treasury Securities) collateral of $125,973 for the Fund (see Note A of the Notes to Financial Statements). |
| Represents 7-day effective yield as of February 28, 2023. |
| Represents investment of cash collateral received from securities lending. |
The following is a summary, categorized by Level (see Note A of the Notes to Financial Statements), of inputs used to value the Fund’s investments as of February 28, 2023:
| The Schedule of Investments provides information on the industry or sector categorization. |
^
A balance indicated with a "—", reflects either a zero balance or an amount that rounds to less than 1.
See Notes to Financial Statements
Schedule of Investments Sustainable Equity Fund^ (Unaudited)
February 28, 2023
| |
|
|
| | |
| | |
| | |
|
| Intercontinental Exchange, Inc. | |
|
| | |
Communications Equipment 1.4% |
| | |
Diversified Financial Services 5.8% |
| Berkshire Hathaway, Inc. Class A* | |
| Berkshire Hathaway, Inc. Class B* | |
| | |
Electrical Equipment 1.9% |
| | |
Electronic Equipment, Instruments & Components 1.9% |
| Zebra Technologies Corp. Class A* | |
Food & Staples Retailing 2.5% |
| | |
Health Care Equipment & Supplies 2.8% |
| | |
| | |
| | |
Health Care Providers & Services 8.5% |
| | |
| | |
| | |
Hotels, Restaurants & Leisure 3.7% |
| | |
|
| | |
|
| | |
Interactive Media & Services 5.3% |
| | |
Internet & Direct Marketing Retail 5.1% |
| | |
| |
|
| Cognizant Technology Solutions Corp. Class A | |
| | |
| | |
| | |
| | |
Life Sciences Tools & Services 2.6% |
| | |
|
| | |
|
| | |
Oil, Gas & Consumable Fuels 1.5% |
| | |
|
| | |
|
| | |
Semiconductors & Semiconductor Equipment 4.2% |
| | |
|
| | |
| | |
| | |
Technology Hardware, Storage & Peripherals 2.5% |
| | |
Trading Companies & Distributors 4.6% |
| | |
| | |
| | |
Total Common Stocks (Cost $806,333,170) | |
| |
|
Short-Term Investments 0.3% |
Certificates of Deposit 0.0%(a) |
| Carver Federal Savings Bank, 1.25%, due 3/23/2023 | |
| Self Help Credit Union, 0.10%, due 5/16/2023 | |
See Notes to Financial Statements
Schedule of Investments Sustainable Equity Fund^ (Unaudited) (cont’d)
| |
Certificates of Deposit – cont'd |
| Self Help Federal Credit Union, 0.10%, due 3/3/2023 | |
| |
| |
Investment Companies 0.3% |
| State Street Institutional Treasury Money Market Fund Premier Class, 4.42%(b) | |
Total Short-Term Investments (Cost $4,166,704) | |
Total Investments 99.9% (Cost $810,499,874) | |
Other Assets Less Liabilities 0.1% | |
| |
| Non-income producing security. |
| Represents less than 0.05% of net assets of the Fund. |
| Represents 7-day effective yield as of February 28, 2023. |
|
| | |
| | |
| | |
| | |
| | |
Short-Term Investments and Other Assets—Net | | |
| | |
The following is a summary, categorized by Level (see Note A of the Notes to Financial Statements), of inputs used to value the Fund’s investments as of February 28, 2023:
| The Schedule of Investments provides information on the industry or sector categorization as well as a Positions by Country summary. |
^
A balance indicated with a "—", reflects either a zero balance or an amount that rounds to less than 1.
See Notes to Financial Statements
Schedule of Investments U.S. Equity Impact Fund^ (Unaudited)
February 28, 2023
| |
|
|
| | |
|
| | |
|
| | |
Commercial Services & Supplies 0.4% |
| | |
Communications Equipment 3.9% |
| | |
Containers & Packaging 8.6% |
| | |
| Graphic Packaging Holding Co. | |
| | |
|
| | |
Electrical Equipment 0.8% |
| | |
Electronic Equipment, Instruments & Components 3.3% |
| | |
| | |
| | |
|
| | |
Health Care Equipment & Supplies 6.2% |
| Baxter International, Inc. | |
| | |
| | |
| | |
| | |
Health Care Providers & Services 4.4% |
| | |
|
| | |
Independent Power and Renewable Electricity |
| Brookfield Renewable Corp. Class A | |
Life Sciences Tools & Services 4.0% |
| | |
| Thermo Fisher Scientific, Inc. | |
| | |
| |
|
| | |
| Evoqua Water Technologies Corp.* | |
| | |
| | |
| | |
Mortgage Real Estate Investment Trusts 0.9% |
| Hannon Armstrong Sustainable Infrastructure Capital, Inc. | |
|
| | |
|
| | |
| | |
| | |
| | |
| | |
Professional Services 3.0% |
| | |
|
| Canadian Pacific Railway Ltd. | |
| | |
| | |
Semiconductors & Semiconductor Equipment 4.4% |
| | |
| | |
| SolarEdge Technologies, Inc.* | |
| | |
|
| | |
| Tyler Technologies, Inc.* | |
| | |
Total Common Stocks (Cost $5,939,458) | |
|
Short-Term Investments 3.3% |
Investment Companies 3.3% |
| State Street Institutional Treasury Money Market Fund Premier Class, 4.42%(b)
(Cost $207,479) | |
Total Investments 99.8% (Cost $6,146,937) | |
Other Assets Less Liabilities 0.2% | |
| |
See Notes to Financial Statements
Schedule of Investments U.S. Equity Impact Fund^ (Unaudited) (cont’d)
| Non-income producing security. |
| Security fair valued as of February 28, 2023 in accordance with procedures approved by the valuation designee. Total value of all such securities at February 28, 2023 amounted to $434, which represents 0.0% of net assets of the Fund. |
| Represents 7-day effective yield as of February 28, 2023. |
The following is a summary, categorized by Level (see Note A of the Notes to Financial Statements), of inputs used to value the Fund’s investments as of February 28, 2023:
| | | | |
| | | | |
| | | | |
Health Care Equipment & Supplies | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| The Schedule of Investments provides information on the industry or sector categorization. |
| At February 28, 2023, these investments were valued in accordance with procedures approved by the valuation designee. These investments did not have a material impact on the Fund's net assets and, therefore, disclosure of unobservable inputs used in formulating valuations is not presented. |
| The reconciliation between beginning and ending balances of investments in which unobservable inputs (Level 3) were used is not presented as all values rounded to less than $1,000. |
^
A balance indicated with a "—", reflects either a zero balance or an amount that rounds to less than 1.
See Notes to Financial Statements
Statements of Assets and Liabilities (Unaudited)
Neuberger Berman Equity Funds
| | Emerging Markets
Equity Fund | |
| | | |
| | | |
Investments in securities, at value*† (Notes A & F)—
see Schedule of Investments: | | | |
| | | |
| | | |
| | | |
| | | |
Dividends and interest receivable | | | |
Receivable for securities sold | | | |
Receivable from Management—net (Note B) | | | |
Receivable for Fund shares sold | | | |
Receivable for securities lending income (Note A) | | | |
Prepaid expenses and other assets | | | |
| | | |
| | | |
Payable to investment manager—net (Note B) | | | |
Option contracts written, at value(d) (Note A) | | | |
| | | |
Payable for securities purchased | | | |
Payable for Fund shares redeemed | | | |
Payable to administrator—net (Note B) | | | |
| | | |
| | | |
Payable for custodian and accounting fees | | | |
| | | |
Payable for cash collateral on loaned securities (Note A) | | | |
Accrued capital gains taxes (Note A) | | | |
Other accrued expenses and payables | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Total distributable earnings/(losses) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
See Notes to Financial Statements
| | | | | | International
Small Cap Fund |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Statements of Assets and Liabilities (Unaudited) (cont’d)
Neuberger Berman Equity Funds
| | Emerging Markets
Equity Fund | |
| | | |
Shares Outstanding ($.001 par value; unlimited shares authorized) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Net Asset Value, offering and redemption price per share | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Net Asset Value and redemption price per share | | | |
| | | |
| | | |
| | | |
Net Asset Value and offering price per share | | | |
| | | |
†Securities on loan, at value: | | | |
| | | |
| | | |
| | | |
| | | |
Total cost of investments | | | |
(c) Total cost of foreign currency | | | |
(d) Premium received from option contracts 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
| | | | | | International
Small Cap Fund |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Statements of Assets and Liabilities (Unaudited) (cont’d)
Neuberger Berman Equity Funds
| | | |
| | | |
| | | |
Investments in securities, at value*† (Notes A & F)—
see Schedule of Investments: | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Dividends and interest receivable | | | |
Receivable for securities sold | | | |
Receivable from Management—net (Note B) | | | |
Receivable for Fund shares sold | | | |
Receivable for securities lending income (Note A) | | | |
Prepaid expenses and other assets | | | |
| | | |
| | | |
Payable to investment manager—net (Note B) | | | |
| | | |
Payable for securities purchased | | | |
Payable for Fund shares redeemed | | | |
Payable to administrator—net (Note B) | | | |
| | | |
| | | |
Payable for custodian and accounting fees | | | |
| | | |
Payable for cash collateral on loaned securities (Note A) | | | |
Other accrued expenses and payables | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Total distributable earnings/(losses) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
See Notes to Financial Statements
| Mid Cap Intrinsic
Value Fund | Multi-Cap
Opportunities Fund | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Statements of Assets and Liabilities (Unaudited) (cont’d)
Neuberger Berman Equity Funds
| | | |
| | | |
Shares Outstanding ($.001 par value; unlimited shares authorized) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Net Asset Value, offering and redemption price per share | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Net Asset Value and redemption price per share | | | |
| | | |
| | | |
| | | |
Net Asset Value and offering price per share | | | |
| | | |
†Securities on loan, at value: | | | |
| | | |
| | | |
| | | |
| | | |
Total cost of investments | | | |
(c) Total cost of foreign currency | | | |
| |
| Consolidated financial statement, see Note A of the Notes to Financial Statements for additional information. |
| 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
| Mid Cap Intrinsic
Value Fund | Multi-Cap
Opportunities Fund | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Statements of Operations (Unaudited)
Neuberger Berman Equity Funds
| | Emerging Markets
Equity Fund | |
| For the Six
Months Ended
February 28, 2023 | For the Six
Months Ended
February 28, 2023 | For the Six
Months Ended
February 28, 2023 |
| | | |
| | | |
Dividend income—unaffiliated issuers | | | |
Dividend income—affiliated issuers (Note F) | | | |
Interest and other income—unaffiliated issuers | | | |
Income from securities loaned—net | | | |
| | | |
| | | |
| | | |
Investment management fees (Note B) | | | |
Administration fees (Note B): | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Distribution fees (Note B): | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Shareholder servicing agent fees: | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Custodian and accounting fees | | | |
| | | |
| | | |
Registration and filing fees | | | |
| | | |
Trustees' fees and expenses | | | |
| | | |
Miscellaneous and other fees (Note A) | | | |
| | | |
| | | |
See Notes to Financial Statements
| | | | | | International
Small Cap Fund |
For the Six
Months Ended
February 28, 2023 | For the Six
Months Ended
February 28, 2023 | For the Six
Months Ended
February 28, 2023 | For the Six
Months Ended
February 28, 2023 | For the Six
Months Ended
February 28, 2023 | For the Six
Months Ended
February 28, 2023 | For the Six
Months Ended
February 28, 2023 |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Statements of Operations (Unaudited) (cont’d)
Neuberger Berman Equity Funds
| | Emerging Markets
Equity Fund | |
| For the Six
Months Ended
February 28, 2023 | For the Six
Months Ended
February 28, 2023 | For the Six
Months Ended
February 28, 2023 |
Expenses reimbursed by Management (Note B) | | | |
Investment management fees waived (Note B) | | | |
| | | |
Net investment income/(loss) | | | |
| | | |
Realized and Unrealized Gain/(Loss) on Investments (Note A): | | | |
Net realized gain/(loss) on: | | | |
Transactions in investment securities of unaffiliated issuers | | | |
Transactions in investment securities of affiliated issuers | | | |
| | | |
Settlement of foreign currency transactions | | | |
Expiration or closing of option contracts written | | | |
Change in net unrealized appreciation/(depreciation) in value of: | | | |
Investment securities of unaffiliated issuers | | | |
Investment securities of affiliated issuers | | | |
Foreign currency translations | | | |
| | | |
Net gain/(loss) on investments | | | |
Net increase/(decrease) in net assets resulting from operations | | | |
| |
| Net of foreign capital gains tax of $1,208,273 for Emerging Markets Equity. |
| Change in accrued foreign capital gains tax amounted to $2,287,879 for Emerging Markets Equity. |
See Notes to Financial Statements
| | | | | | International
Small Cap Fund |
For the Six
Months Ended
February 28, 2023 | For the Six
Months Ended
February 28, 2023 | For the Six
Months Ended
February 28, 2023 | For the Six
Months Ended
February 28, 2023 | For the Six
Months Ended
February 28, 2023 | For the Six
Months Ended
February 28, 2023 | For the Six
Months Ended
February 28, 2023 |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Statements of Operations (Unaudited) (cont’d)
Neuberger Berman Equity Funds
| | | |
| For the Six
Months Ended
February 28, 2023 | For the Six
Months Ended
February 28, 2023 | For the Six
Months Ended
February 28, 2023 |
| | | |
| | | |
Dividend income—unaffiliated issuers | | | |
Interest and other income—unaffiliated issuers | | | |
Income from securities loaned—net | | | |
| | | |
| | | |
| | | |
Investment management fees (Note B) | | | |
Administration fees (Note B): | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Distribution fees (Note B): | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Shareholder servicing agent fees: | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Blocker administration fees | | | |
Custodian and accounting fees | | | |
| | | |
| | | |
Registration and filing fees | | | |
Repayment to Management of expenses previously assumed by Management (Note B) | | | |
| | | |
Trustees' fees and expenses | | | |
| | | |
Miscellaneous and other fees (Note A) | | | |
| | | |
| | | |
See Notes to Financial Statements
| Mid Cap Intrinsic
Value Fund | Multi-Cap
Opportunities Fund | | | | |
For the Six
Months Ended
February 28, 2023 | For the Six
Months Ended
February 28, 2023 | For the Six
Months Ended
February 28, 2023 | For the Six
Months Ended
February 28, 2023 | For the Six
Months Ended
February 28, 2023 | For the Six
Months Ended
February 28, 2023 | For the Six
Months Ended
February 28, 2023 |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Statements of Operations (Unaudited) (cont’d)
Neuberger Berman Equity Funds
| | | |
| For the Six
Months Ended
February 28, 2023 | For the Six
Months Ended
February 28, 2023 | For the Six
Months Ended
February 28, 2023 |
Expenses reimbursed by Management (Note B) | | | |
Investment management fees waived (Note B) | | | |
| | | |
Net investment income/(loss) | | | |
| | | |
Realized and Unrealized Gain/(Loss) on Investments (Note A): | | | |
Net realized gain/(loss) on: | | | |
Transactions in investment securities of unaffiliated issuers | | | |
Settlement of foreign currency transactions | | | |
Expiration or closing of option contracts written | | | |
Change in net unrealized appreciation/(depreciation) in value of: | | | |
Investment securities of unaffiliated issuers | | | |
Investment securities of affiliated issuers | | | |
Foreign currency translations | | | |
Net gain/(loss) on investments | | | |
Net increase/(decrease) in net assets resulting from operations | | | |
| |
| Consolidated financial statement, see Note A of the Notes to Financial Statements for additional information. |
See Notes to Financial Statements
| Mid Cap Intrinsic
Value Fund | Multi-Cap
Opportunities Fund | | | | |
For the Six
Months Ended
February 28, 2023 | For the Six
Months Ended
February 28, 2023 | For the Six
Months Ended
February 28, 2023 | For the Six
Months Ended
February 28, 2023 | For the Six
Months Ended
February 28, 2023 | For the Six
Months Ended
February 28, 2023 | For the Six
Months Ended
February 28, 2023 |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Statements of Changes in Net Assets
Neuberger Berman Equity Funds
| | Emerging Markets
Equity Fund |
| | | | |
| February 28,
2023
(Unaudited) | | February 28,
2023
(Unaudited) | |
Increase/(Decrease) in Net Assets: | | | | |
From Operations (Note A): | | | | |
Net investment income/(loss) | | | | |
Net realized gain/(loss) on investments | | | | |
Change in net unrealized appreciation/(depreciation) of investments | | | | |
Net increase/(decrease) in net assets resulting from operations | | | | |
Distributions to Shareholders From (Note A): | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Total distributions to shareholders | | | | |
From Fund Share Transactions (Note D): | | | | |
Proceeds from shares sold: | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Proceeds from reinvestment of dividends and distributions: | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
See Notes to Financial Statements
| | | |
| | | | | | | |
February 28,
2023
(Unaudited) | | February 28,
2023
(Unaudited) | | February 28,
2023
(Unaudited) | | February 28,
2023
(Unaudited) | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Statements of Changes in Net Assets (cont’d)
Neuberger Berman Equity Funds
| | Emerging Markets
Equity Fund |
| | | | |
| February 28,
2023
(Unaudited) | | February 28,
2023
(Unaudited) | |
Payments for shares redeemed: | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Net increase/(decrease) from Fund share transactions | | | | |
Net Increase/(Decrease) in Net Assets | | | | |
| | | | |
| | | | |
| | | | |
See Notes to Financial Statements
| | | |
| | | | | | | |
February 28,
2023
(Unaudited) | | February 28,
2023
(Unaudited) | | February 28,
2023
(Unaudited) | | February 28,
2023
(Unaudited) | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Statements of Changes in Net Assets (cont’d)
Neuberger Berman Equity Funds
| | |
| | | | |
| February 28,
2023
(Unaudited) | | February 28,
2023
(Unaudited) | |
Increase/(Decrease) in Net Assets: | | | | |
From Operations (Note A): | | | | |
Net investment income/(loss) | | | | |
Net realized gain/(loss) on investments | | | | |
Change in net unrealized appreciation/(depreciation) of investments | | | | |
Net increase/(decrease) in net assets resulting from operations | | | | |
Distributions to Shareholders From (Note A): | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Total distributions to shareholders | | | | |
From Fund Share Transactions (Note D): | | | | |
Proceeds from shares sold: | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Proceeds from reinvestment of dividends and distributions: | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
See Notes to Financial Statements
| International
Small Cap Fund | | |
| | | | | | | |
February 28,
2023
(Unaudited) | | February 28,
2023
(Unaudited) | | February 28,
2023
(Unaudited) | | February 28,
2023
(Unaudited) | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Statements of Changes in Net Assets (cont’d)
Neuberger Berman Equity Funds
| | |
| | | | |
| February 28,
2023
(Unaudited) | | February 28,
2023
(Unaudited) | |
Payments for shares redeemed: | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Net increase/(decrease) from Fund share transactions | | | | |
Net Increase/(Decrease) in Net Assets | | | | |
| | | | |
| | | | |
| | | | |
| |
| Consolidated financial statement, see Note A of the Notes to Financial Statements for additional information. |
See Notes to Financial Statements
| International
Small Cap Fund | | |
| | | | | | | |
February 28,
2023
(Unaudited) | | February 28,
2023
(Unaudited) | | February 28,
2023
(Unaudited) | | February 28,
2023
(Unaudited) | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Statements of Changes in Net Assets (cont’d)
Neuberger Berman Equity Funds
| | |
| | | | |
| February 28,
2023
(Unaudited) | | February 28,
2023
(Unaudited) | |
Increase/(Decrease) in Net Assets: | | | | |
From Operations (Note A): | | | | |
Net investment income/(loss) | | | | |
Net realized gain/(loss) on investments | | | | |
Change in net unrealized appreciation/(depreciation) of investments | | | | |
Net increase/(decrease) in net assets resulting from operations | | | | |
Distributions to Shareholders From (Note A): | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Total distributions to shareholders | | | | |
From Fund Share Transactions (Note D): | | | | |
Proceeds from shares sold: | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Proceeds from reinvestment of dividends and distributions: | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
See Notes to Financial Statements
Mid Cap Intrinsic
Value Fund | Multi-Cap
Opportunities Fund | | |
| | | | | | | |
February 28,
2023
(Unaudited) | | February 28,
2023
(Unaudited) | | February 28,
2023
(Unaudited) | | February 28,
2023
(Unaudited) | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Statements of Changes in Net Assets (cont’d)
Neuberger Berman Equity Funds
| | |
| | | | |
| February 28,
2023
(Unaudited) | | February 28,
2023
(Unaudited) | |
Payments for shares redeemed: | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Net increase/(decrease) from Fund share transactions | | | | |
Net Increase/(Decrease) in Net Assets | | | | |
| | | | |
| | | | |
| | | | |
See Notes to Financial Statements
Mid Cap Intrinsic
Value Fund | Multi-Cap
Opportunities Fund | | |
| | | | | | | |
February 28,
2023
(Unaudited) | | February 28,
2023
(Unaudited) | | February 28,
2023
(Unaudited) | | February 28,
2023
(Unaudited) | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Statements of Changes in Net Assets (cont’d)
Neuberger Berman Equity Funds
| | |
| | | | |
| February 28,
2023
(Unaudited) | | February 28,
2023
(Unaudited) | |
Increase/(Decrease) in Net Assets: | | | | |
From Operations (Note A): | | | | |
Net investment income/(loss) | | | | |
Net realized gain/(loss) on investments | | | | |
Change in net unrealized appreciation/(depreciation) of investments | | | | |
Net increase/(decrease) in net assets resulting from operations | | | | |
Distributions to Shareholders From (Note A): | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Total distributions to shareholders | | | | |
From Fund Share Transactions (Note D): | | | | |
Proceeds from shares sold: | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Proceeds from reinvestment of dividends and distributions: | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
See Notes to Financial Statements
| | |
| | | | |
| February 28,
2023
(Unaudited) | | February 28,
2023
(Unaudited) | |
Payments for shares redeemed: | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Net increase/(decrease) from Fund share transactions | | | | |
Net Increase/(Decrease) in Net Assets | | | | |
| | | | |
| | | | |
| | | | |
Notes to Financial Statements Equity Fundsß (Unaudited)
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 March 27, 2014. The Trust is registered as an open-end management investment company under the Investment Company Act of 1940, as amended (the "1940
Act"), and its shares are registered under the Securities Act of 1933, as amended. Neuberger Berman Dividend Growth Fund ("Dividend Growth"), 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 Real Estate Fund ("Global Real Estate"), Neuberger Berman Greater China Equity Fund ("Greater China Equity"), Neuberger Berman International Equity Fund ("International Equity"), Neuberger Berman International Select Fund ("International Select"), Neuberger Berman International Small Cap Fund ("International Small Cap"), Neuberger Berman Intrinsic Value Fund ("Intrinsic Value"), Neuberger Berman Large Cap Growth Fund ("Large Cap Growth") (formerly Neuberger Berman Guardian Fund), Neuberger Berman Large Cap Value Fund ("Large Cap Value"), Neuberger Berman Mid Cap Growth Fund ("Mid Cap Growth"), Neuberger Berman Mid Cap Intrinsic Value Fund ("Mid Cap Intrinsic Value"), Neuberger Berman Multi-Cap Opportunities Fund ("Multi-Cap Opportunities"), Neuberger Berman Real Estate Fund ("Real Estate"), Neuberger Berman Small Cap Growth Fund ("Small Cap Growth"), Neuberger Berman Sustainable Equity Fund ("Sustainable Equity") and Neuberger Berman U.S. Equity Impact Fund ("U.S. Equity Impact") (each individually a "Fund," and collectively, the "Funds") are separate operating series of the Trust, each of
which (except Greater China Equity and Real Estate) 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 (Global Real Estate and Multi-Cap Opportunities became diversified in December 2017 and December 2012, respectively). Nine 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, ten offer Class R3 shares, fourteen offer Class R6 shares and six offer Class E shares. The Trust’s Board of Trustees (the "Board") may establish additional series or classes of shares without the approval of shareholders.
A balance indicated with a "—", reflects either a zero balance or a balance that rounds to less than 1.
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 series of the Trust.
Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 946 "Financial Services—Investment Companies."
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.
On February 25, 2022, to facilitate compliance with certain requirements necessary to maintain its status as a regulated investment company ("RIC"), Large Cap Growth formed NB A24 Guardian Blocker LLC (the "Blocker"), a Delaware limited liability company, to hold interests in certain private placements. The Blocker is a wholly owned subsidiary of Large Cap Growth and Large Cap Growth will remain its sole member.
As of February 28, 2023, the value of Large Cap Growth's investment in the Blocker was as follows:
ß
Notes to Consolidated Financial Statements for Large Cap Growth
2
Consolidation: The accompanying financial statements of Large Cap Growth present the consolidated accounts of Large Cap Growth and the Blocker. All intercompany accounts and transactions have been eliminated in consolidation.
3
Portfolio valuation: In accordance with ASC 820 "Fair Value Measurement" ("ASC 820"), all investments held by each of the Funds are carried at the value that Management believes each 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. At times, Management may need to apply significant judgment 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 – unadjusted quoted prices in active markets for identical investments
•
Level 2 – other observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, amortized cost, etc.)
•
Level 3 – unobservable inputs (including a Fund's own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing an investment are not necessarily an indication of the risk associated with investing in those securities.
The value of the Funds’ investments in equity securities, preferred stocks, warrants, rights, master limited partnerships and limited partnerships, and exchange-traded options written, for which market quotations are available, is generally determined by Management by obtaining valuations from independent pricing services 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 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 sale of a security on a particular day, the independent pricing services may value the security based on market quotations.
The value of the Funds’ investments in debt securities is determined by Management primarily by obtaining valuations from independent pricing services based on bid quotations, or if quotations are not available, by methods which include various considerations based on security type (generally Level 2 inputs). In addition to the consideration of yields or prices of securities of comparable quality, coupon, maturity and type, indications as to values from dealers, and general market conditions, the following is a description of other Level 2 inputs and related valuation techniques used by independent pricing services to value certain types of debt securities held by the Funds:
Convertible Bonds. Inputs used to value convertible bonds generally include underlying stock data, conversion rates, credit specific details, relevant listed bond and preferred stock prices and other market information, which may include benchmark yield curves, reported trades, broker-dealer quotes, issuer spreads, comparable securities, and reference data, such as market research publications, when available.
Management has developed a process to periodically review information provided by independent pricing services for all types of securities.
Certificates of deposit are valued at amortized cost (Level 2 inputs).
Publicly traded securities acquired via a private investment in public equity ("PIPE") transaction are typically valued at a discount to the market price of an issuer’s common stock. Discounts are applied due to certain
trading restrictions imposed or a lack of marketability preceding the conversion to publicly traded securities. The primary inputs used in determining the discount are the length of the lock-up time period and volatility of the underlying security (Level 1 or Level 2 Inputs).
Investments in non-exchange traded investment companies are valued using the respective fund’s daily calculated net asset value ("NAV") per share (Level 2 inputs), when available.
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, Management seeks to obtain quotations from brokers or dealers (generally considered Level 2 or Level 3 inputs depending on the number of quotes available). If such quotations are not available, the security is valued using methods Management has approved in the good-faith belief that the resulting valuation will reflect the fair value of the security. Pursuant to Rule 2a-5 under the 1940 Act, the Board designated Management as the Funds' valuation designee. As the Funds' valuation designee, Management is responsible for determining fair value in good faith for any and all Fund investments. Inputs and assumptions considered in determining the fair value of a security based on Level 2 or Level 3 inputs may include, but are not limited to, the type of the security; the initial cost of the security; the existence of any contractual restrictions on the security’s disposition; the price and extent of public trading in similar securities of the issuer or of comparable companies; quotations or evaluated prices from broker-dealers and/or pricing services; information obtained from the issuer and/or analysts; an analysis of the company’s or issuer’s financial statements; an evaluation of the inputs that influence the issuer and the market(s) in which the security is purchased and sold.
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 normally translated from the local currency into U.S. dollars using the exchange rates as of 4:00 p.m., Eastern Time on days the New York Stock Exchange ("NYSE") is open for business. Management has approved the use of ICE Data Services ("ICE") 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, ICE will provide adjusted prices for certain foreign equity securities using a statistical analysis of historical correlations of multiple factors (Level 2 inputs). Management has also approved the use of ICE to evaluate the prices of foreign debt securities as of the time as of which a Fund’s share price is calculated. ICE utilizes benchmark spread and yield curves and evaluates available market activity from the local close to the time as of which a Fund’s share price is calculated (Level 2 inputs) to assist in determining prices for certain foreign debt securities. In the case of both foreign equity and foreign debt securities, in the absence of precise information about the market values of these foreign securities as of the time as of which a Fund’s share price is calculated, Management has determined on the basis of available data that prices adjusted or evaluated 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.
4
Foreign currency translations: The accounting records of the Funds and the Blocker are maintained in U.S. dollars. Foreign currency amounts are normally translated into U.S. dollars using the exchange rate as of 4:00 p.m. Eastern Time, on days the NYSE is open for business, 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.
5
Securities transactions and investment income: Securities transactions are recorded on trade date for financial reporting purposes. Dividend income is recorded on the ex-dividend date or, for certain foreign
dividends, as soon as a Fund becomes aware of the dividends. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, including accretion of discount (adjusted for original issue discount, where applicable) and amortization of premium, where applicable, is recorded on the accrual basis. Realized gains and losses from securities transactions and foreign currency transactions, if any, are recorded on the basis of identified cost and stated separately in the Statements of Operations. Included in net realized gain/(loss) on investments are proceeds from the settlement of class action litigation(s) in which certain of the Funds participated as a class member. The amount of such proceeds for the six months ended February 28, 2023, were $96, $249,912, $40,375, $3,999, $51, $5,888, $90,915, $14,898, $912,647, and $33,968, for Focus, Genesis, International Equity, International Select, Large Cap Growth, Large Cap Value, Mid Cap Growth, Mid Cap Intrinsic, Multi-Cap Opportunities, and Small Cap Growth, respectively.
6
Income tax information: Each Fund is treated as a separate entity for U.S. federal income tax purposes. It is the policy of each Fund to continue to qualify for treatment as a RIC by complying with the requirements of the U.S. Internal Revenue Code applicable to RICs and to distribute substantially all of its net investment income and net realized capital gains to its shareholders. To the extent a Fund distributes substantially all of its net investment income and net realized capital gains to shareholders, no federal income or excise tax provision is required.
ASC 740 "Income Taxes" 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 tax years for which the applicable statutes of limitations have not yet expired. As of February 28, 2023, the Funds did not have any unrecognized tax positions.
For federal income tax purposes, the estimated cost and unrealized appreciation/(depreciation) in value of investments held at February 28, 2023 were as follows:
| | Gross
Unrealized
Appreciation | Gross
Unrealized
Depreciation | Net Unrealized
Appreciation/
(Depreciation) |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
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. 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.
Any permanent differences resulting from different book and tax treatment are reclassified at year-end and have no impact on net income, NAV or NAV per share of the Funds. For the year ended August 31, 2022, the Funds recorded permanent reclassifications primarily related to one or more of the following: deemed distributions on shareholder redemptions, prior year true up adjustments, net operating losses written off and gains (losses) & tax adjustments on securities redeemed in kind. For the year ended August 31, 2022, the Funds recorded the following permanent reclassifications:
| | Total Distributable
Earnings/(Losses) |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
The tax character of distributions paid during the years ended August 31, 2022, and August 31, 2021, was as follows:
| Period from March 23, 2021 (Commencement of Operations) to August 31, 2021. |
As of August 31, 2022, the components of distributable earnings (accumulated losses) on a U.S. federal income tax basis were as follows:
| Undistributed
Ordinary
Income | Undistributed
Long-Term
Capital Gain | Unrealized
Appreciation/
(Depreciation) | Loss
Carryforwards
and Deferrals | Other
Temporary
Differences | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| Undistributed Ordinary Income | Undistributed Long-Term Capital Gain | Unrealized Appreciation/ (Depreciation) | Loss Carryforwards and Deferrals | Other Temporary Differences | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
The temporary differences between book basis and tax basis distributable earnings are primarily due to: losses disallowed and/or recognized on wash sales, capital loss carryforwards, amortization of organization expenses, deemed distributions on shareholder redemptions, investments with nontaxable distributions, tax adjustments related to partnership basis adjustments and mark-to-market adjustments on forwards and passive foreign investment companies ("PFICs") and other investments.
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. Capital loss carryforward rules allow for RICs to carry forward capital losses indefinitely and to retain the character of capital loss carryforwards as short-term or long-term. As determined at August 31, 2022, the following Funds had unused capital loss carryforwards available for federal income tax purposes to offset future net realized capital gains, if any, as follows:
| Capital Loss Carryforwards |
| | |
| | |
| | |
| | |
| | |
| Future utilization is limited under current tax regulations. |
During the year ended August 31, 2022, Mid Cap Intrinsic Value and U.S. Equity Impact utilized capital loss carryforwards of $5,406,640 and $36,682, respectively.
Under current tax regulations, capital losses realized on investment transactions after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. Under the current tax rules, 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 PFIC mark to market losses) realized on investment transactions after October 31. For the year ended August 31, 2022, 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 |
| | |
| | |
| | |
| | |
| | |
| | |
| Late-Year Ordinary Loss Deferral | Post October Capital Loss Deferral |
| | |
| | |
| | |
| | |
The Blocker is taxed as a corporation under the U.S. Internal Revenue Code. As of August 31, 2022, Large Cap Growth had a gross deferred tax asset of $10,500 resulting from deferred interest expense, capital losses and net operating losses in the Blocker and had no deferred tax liability. As of August 31, 2022, the Blocker anticipated that it would be unable to fully utilize the deferred tax asset, therefore, the deferred tax asset was offset by a valuation allowance of $10,500. For the year ended August 31, 2022, Large Cap Growth did not record a provision for taxes related to the Blocker.
7
Foreign taxes: Foreign taxes withheld, if any, represent amounts withheld by foreign tax authorities, net of refunds recoverable.
Foreign capital gains on certain foreign securities may be subject to foreign taxes, which are accrued as applicable. Emerging Markets Equity accrues capital gains tax on unrealized and realized gains for certain securities. At February 28, 2023, Emerging Markets Equity had accrued capital gains taxes of $2,901,563, which is reflected in the Statements of Assets and Liabilities. For the six months ended February 28, 2023, Emerging Markets Equity had realized capital gains taxes of $1,208,273, which is reflected in the Statements of Operations.
As a result of several European Court of Justice ("ECJ") court cases in certain countries across the European Union ("EU"), certain of the Funds have filed tax reclaims for previously withheld taxes on dividends earned in those countries ("ECJ tax reclaims"). These additional filings are subject to various administrative proceedings by the local jurisdictions’ tax authorities within the EU, as well as a number of related judicial proceedings. The Funds have determined that certain ECJ tax reclaims in Finland and Sweden are "more likely than not" to be sustained after examination by tax authorities and are reflected as "Prepaid expenses and other assets" and "Other accrued expenses and payables" in the Statements of Assets and Liabilities for certain of the Funds. The income recognized from these ECJ tax reclaims is reflected as "Interest and other income—unaffiliated issuers" in the Statements of Operations and the cost to file these additional ECJ tax reclaims is reflected as "Miscellaneous and other fees" in the Statements of Operations for certain of the Funds. When any such ECJ tax reclaims are not "more likely than not" to be sustained, no amounts are reflected in the Statements of Assets and Liabilities or Statements of Operations.
8
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, are generally distributed once a year (usually in December) and are recorded on the ex-date. However, Equity Income, Global Real Estate and Real Estate generally distribute net investment income, if any, at the end of each calendar quarter.
For Funds that invest in real estate investment trusts ("REITs"), these Funds pass through to their shareholders substantially all REIT distributions and other income they receive, less operating expenses. The distributions received from REITs are generally composed of income, capital gains, and/or return of REIT capital, but the REITs do not report this information to these Funds until the following calendar year. For the year ended August 31, 2022, the character of distributions, if any, paid to shareholders of these Funds disclosed within the Statements of Changes in Net Assets is based on estimates made at that time. Based on past experience it is possible that a portion of these Funds' distributions during the current fiscal year, if any, 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 these Funds learn the nature of the distributions paid by REITs during that year, distributions previously identified as income are often recharacterized as return of capital and/or capital gain. After all applicable REITs have informed these Funds of the actual breakdown of distributions paid to these Funds during their fiscal year, estimates
previously recorded are adjusted to reflect actual results. As a result, the composition of these Funds' distributions as reported herein may differ from the final composition determined after calendar year-end and reported to these Funds shareholders on IRS Form 1099-DIV.
9
Expense allocation: Certain expenses are applicable to multiple funds within the complex of related investment companies. 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 NBIA 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 its classes based upon the relative net assets of each class.
10
Investments in foreign securities: Investing in foreign securities may involve 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
Investment company securities and exchange-traded funds: The Funds may invest in shares of other registered investment companies, including exchange-traded funds ("ETFs"), within the limitations prescribed by the 1940 Act, in reliance on rules adopted by the SEC, particularly Rule 12d1-4 or any other applicable exemptive relief. Rule 12d1-4 permits fund of funds arrangements, and includes (i) limits on control and voting; (ii) required evaluations and findings; (iii) required fund of funds investment agreements; and (iv) limits on complex structures. Shareholders of a Fund will indirectly bear their proportionate share of any management fees and other expenses paid by such other investment companies, in addition to the management fees and expenses of the Fund.
12
Derivative instruments: Certain Funds' use of derivatives during the six months ended February 28, 2023, is described below. Please see the Schedule of Investments for each Fund's open positions in derivatives, if any, at February 28, 2023. The disclosure requirements of ASC 815 "Derivatives and Hedging" ("ASC 815") distinguish between derivatives that qualify for hedge accounting and those that do not. Because investment companies value their derivatives at fair value and recognize changes in fair value through the Statements of Operations, they do not qualify for hedge accounting. Accordingly, even though a Fund's investments in derivatives may represent economic hedges, they are considered non-hedge transactions for purposes of this disclosure.
Rule 18f-4 under the 1940 Act which became effective in August 2022, regulates the use of derivatives for certain funds registered under the 1940 Act ("Rule 18f-4"). The Funds have adopted a Rule 18f-4 Policy which provides, among other things, that unless a Fund qualifies as a "limited derivatives user" as defined in Rule 18f-4, the Fund is subject to a comprehensive derivatives risk management program, is required to comply with certain value-at-risk based leverage limits and is required to provide additional disclosure both publicly and to the SEC regarding its derivatives positions. If a Fund qualifies as a limited derivatives user, Rule 18f-4 requires the Fund to have policies and procedures to manage its aggregate derivatives risk.
Options: Equity Income used options written to generate incremental returns. Large Cap Growth used options written to enhance total return, to gain exposure more efficiently than through a direct purchase of the underlying security, to gain exposure to securities, markets, sectors or geographical areas and to manage or adjust the risk profile of the Fund or the risk of individual positions.
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, a Fund realizes a gain or loss and the asset is eliminated. For purchased call options, a Fund's loss is limited to the amount of the option premium paid.
Premiums received by a Fund upon writing a 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, a 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, a 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 call or put option that a Fund has written expires unexercised, a Fund will realize a gain for the amount of the premium. All securities covering outstanding written options are held in escrow by the custodian bank.
At February 28, 2023, the Fund listed below had the following derivatives (which did not qualify as hedging instruments under ASC 815), grouped by primary risk exposure:
| | |
| Statements of
Assets and Liabilities
Location | | Statements of
Assets and Liabilities
Location | |
| | | | |
| | | | |
| | | Option contracts written, at value | |
The impact of the use of these derivative instruments on the Statements of Operations during the six months ended February 28, 2023, was as follows:
| | | Change in Net Unrealized
Appreciation/
(Depreciation) on
|
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| Net realized gain/(loss) on derivatives is located in the Statements of Operations each under the caption, "Net realized gain/(loss) on:" |
| Expiration or closing of option contracts written |
| Change in net unrealized appreciation/(depreciation) is located in the Statements of Operations each under the caption, "Change in net unrealized appreciation/(depreciation) in value of:" |
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 Dividend Growth, Emerging Markets Equity, Focus, Genesis, Global Real Estate, Greater China Equity, International Equity, International Select, International Small Cap, Intrinsic Value, Large Cap Value, Mid Cap Growth, Mid Cap Intrinsic Value, Multi-Cap Opportunities, Real Estate, Small Cap Growth, Sustainable Equity and U.S. Equity Impact did not hold any derivative instruments during the six months ended February 28, 2023 that require additional disclosures pursuant to ASC 815.
13
Securities lending: Each Fund, using State Street Bank and Trust Company ("State Street") as its lending agent, may loan securities to qualified brokers and dealers in exchange for negotiated lender’s fees. These fees, if any, would be disclosed within the Statements of Operations under the caption “Income from securities loaned-net” and are net of expenses retained by State Street as compensation for its services as lending agent.
The initial collateral received by a Fund at the beginning of each transaction shall have a value equal to at least 102% of the prior day’s market value of the loaned securities (105% in the case of international securities). Collateral in the form of cash and/or securities issued or guaranteed by the U.S. government or its agencies, equivalent to at least 100% of the market value of securities, is maintained at all times. Thereafter, the value of the collateral is monitored on a daily basis, and collateral is moved daily between a counterparty and a Fund until the close of the transaction. Cash collateral is generally invested in a money market fund registered under the 1940 Act that is managed by an affiliate of State Street and is included in the Statements of Assets and Liabilities under the caption "Investments in securities, at value-Unaffiliated issuers". The total value of securities received as collateral for securities on loan is included in a footnote following the applicable Schedule of Investments, but is not included within the Statements of Assets and Liabilities because the receiving Fund does not have the right to sell or repledge the securities received as collateral. The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities. Any increase or decrease in the fair value of the securities loaned and any interest earned or dividends paid or owed on those securities during the term of the loan would accrue to that Fund.
As of February 28, 2023, the Funds listed below had outstanding loans of securities to certain approved brokers each with a value as follows:
| Value of Securities
Loaned |
| |
| |
| |
| |
| |
| |
As of February 28, 2023, the Funds listed below had outstanding loans of securities to certain approved brokers for which each received collateral as follows:
| Remaining Contractual Maturity of the Agreements |
| | | | | |
Securities Lending Transactions(a) | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| Remaining Contractual Maturity of the Agreements |
| | | | | |
| | | | | |
| Amounts represent the payable for loaned securities collateral received. |
14
Offsetting Assets and Liabilities: The Funds are required to disclose both gross and net information for assets and liabilities related to over-the-counter derivatives, repurchase and reverse repurchase agreements, and securities lending and securities borrowing transactions that are eligible for offset or subject to an enforceable master netting or similar agreement. International Equity, International Select, International Small Cap, Large Cap Growth, Large Cap Value and Small Cap Growth held one or more of these investments at February 28, 2023. The Funds’ securities lending assets at fair value are reported gross in the Statements of Assets and Liabilities. The following tables present securities lending assets by counterparty and net of the related collateral received by a Fund as of February 28, 2023.
| Gross Amounts of Assets
Presented in the Statements
of Assets and Liabilities | Gross Amounts of Liabilities
Presented in the Statements
of Assets and Liabilities |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Gross Amounts Not Offset in the Statements of Assets and Liabilities: |
| | |
| Gross Amounts
Presented in
the Statements
of Assets and
Liabilities | Liabilities
Available
for Offset | | | Gross Amounts
Presented in
the Statements
of Assets and
Liabilities | Assets
Available
for Offset | | |
| | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | |
| | | | | | | | |
| | | | | | | | |
Gross Amounts Not Offset in the Statements of Assets and Liabilities: |
| | |
| Gross Amounts Presented in the Statements of Assets and Liabilities | Liabilities Available for Offset | | | Gross Amounts Presented in the Statements of Assets and Liabilities | Assets Available for Offset | | |
| | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | |
| | | | | | | | |
| | | | | | | | |
| Collateral received (or pledged) is limited to an amount not to exceed 100% of the net amount of assets (or liabilities) in the tables presented above, for each respective counterparty. |
| A net amount greater than zero represents amounts subject to loss as of February 28, 2023, in the event of a counterparty failure. A net amount less than zero represents amounts under-collateralized to each counterparty as of February 28, 2023. |
15
Indemnifications: Like many other companies, the Trust’s organizational documents provide that its officers ("Officers") and trustees ("Trustees") are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, both in some of its principal service contracts and in the normal course of its business, the Trust enters into contracts that provide indemnifications to other parties for certain types of losses or liabilities. The Trust’s maximum exposure under these arrangements is unknown as this could involve future claims against the Trust.
16
In-kind redemption: In accordance with guidelines described in a Fund’s prospectus and in accordance with procedures adopted by the Board, a Fund may distribute portfolio securities rather than cash as payment for a redemption of Fund shares ("in-kind redemption"). For financial reporting purposes, the Fund recognizes a gain on in-kind redemptions to the extent the value of the distributed securities on the date of redemption exceeds the cost of those securities. Gains and losses realized on in-kind redemptions are not recognized for tax purposes and are reclassified from undistributed realized gain/(loss) to paid-in capital. During the six months ended February 28, 2023, Genesis realized net gains of $142,772,313 on $150,426,065 of in-kind redemptions, which is comprised of $150,384,116 in securities and $41,949 in cash. During the year ended August 31, 2022, Large Cap Value realized net gains of $27,164,460 on $94,882,781 of in-kind redemptions which is comprised of $90,055,715 in securities and $4,827,066 in cash.
17
Investments in private companies: Investments in private companies, including companies that have not yet issued securities publicly in an initial public offering, involve greater risks than investments in securities of companies that have traded publicly on an exchange for extended periods of time. Investments in these companies are generally less liquid than investments in securities issued by public companies and may be difficult for the Fund to value. Private placements and other restricted securities may not be listed on an exchange and may have no active trading market. As a result of the absence of a public trading market, the prices of these securities may be more difficult to determine than publicly traded securities and these securities may involve heightened risk as compared to investments in securities of publicly traded
companies. Private placements and other restricted securities may be illiquid, and it frequently can be difficult to sell them at a time when it may otherwise be desirable to do so or the Fund may be able to sell them only at prices that are less than what the Fund regards as their fair market value.
18
Other: All net investment income and realized and unrealized capital gains and losses of each Fund are allocated, on the basis of relative net assets, pro rata among its respective classes.
Note B—Investment Management Fees, Administration Fees, Distribution Arrangements, and Other Transactions with Affiliates:
Each Fund retains NBIA as its investment manager under a Management Agreement. For such investment management services, each Fund pays NBIA an investment management fee as a percentage of average daily net assets according to the following table: |
| | | | | | | | | | |
|
| | | | | | | | | | |
For Intrinsic Value and Small Cap Growth: |
| | | | | | | | | | |
For Emerging Markets Equity: |
| | | | | | | | | | |
For Global Real Estate and Real Estate(a): |
| | | | | | | | | | |
For International Equity(a)(b): |
| | | | | | | | | | |
For International Small Cap: |
| | | | | | | | | | |
For Equity Income(a), Focus, International Select, Large Cap Growth, Large Cap Value(a), Mid Cap Growth, Mid Cap Intrinsic Value and Sustainable Equity: |
| | | | | | | | | | |
For Multi-Cap Opportunities(a): |
| | | | | | | | | | |
For Greater China Equity: |
| | | | | | | | | | |
|
| | | | | | | | | | |
|
| | | | | | | | | | |
(a)
NBIA has contractually agreed to waive its Class E management fee for the below Funds. This undertaking lasts until August 31, 2023 and may not be terminated during its term without the consent of the Board. Management fees contractually waived are not subject to recovery by NBIA.
| Annualized
Percentage of
Average Daily
Net Assets
Waived | | Management Fees
Waived for the
Six Months Ended
February 28, 2023 |
| | | |
| Annualized Percentage of Average Daily Net Assets Waived | | Management Fees Waived for the Six Months Ended February 28, 2023 |
| | | |
| | | |
| | | |
| | | |
| | | |
(b)
NBIA has voluntarily agreed to waive and/or reimburse its management fee for the below Fund. NBIA may, at its sole discretion, modify or terminate the voluntary waiver and/or reimbursement without notice to the Fund. Fees voluntarily waived and/or reimbursed are not subject to recovery by NBIA.
| Percentage of
Average Daily
Net Assets
Waived
and/or
Reimbursed | | Management Fees
Waived and/or
Reimbursed
for the
Six Months Ended
February 28, 2023 |
| | | |
| | | |
Accordingly, for the six months ended February 28, 2023, the investment management fee pursuant to the Management Agreement was equivalent to an annual effective rate of each Fund’s average daily net assets. |
| | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| 0.49% annual effective net rate of the Fund’s average daily net assets. |
| 0.65% annual effective net rate of the Fund’s average daily net assets. |
| 0.66% annual effective net rate of the Fund’s average daily net assets. |
| 0.41% annual effective net rate of the Fund’s average daily net assets. |
| 0.45% annual effective net rate of the Fund’s average daily net assets. |
| 0.79% annual effective net rate of the Fund’s average daily net assets. |
Each Fund retains NBIA as its administrator under an Administration Agreement. The administration fee is assessed at the class level and each share class of a Fund, as applicable, pays NBIA an annual administration fee equal to the following: 0.26% for each of Investor Class, Class A, Class C and Class R3; 0.40% for Trust Class and Advisor Class; 0.15% for Institutional Class; and 0.05% for Class R6, each as a percentage of its average daily net assets. Class E shares do not pay an administration fee. Additionally, NBIA retains State Street as its sub-administrator under a Sub-Administration Agreement. NBIA pays State Street a fee for all services received under the Sub-Administration Agreement.
NBIA has contractually agreed to waive fees and/or reimburse certain expenses of the Investor Class of each of International Equity, Mid Cap Intrinsic Value and Small Cap Growth and the Trust Class, Advisor Class, Institutional Class, Class A, Class C, Class R3 and Class R6 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 exclude interest, brokerage commissions, acquired fund fees and expenses, extraordinary expenses, taxes including any expenses relating to tax reclaims, and dividend and interest expenses relating to short sales, if any (commitment fees relating to borrowings are treated as interest for purposes of this exclusion) ("annual operating expenses"); consequently, net expenses may exceed the contractual expense limitations. The expenses of the Blocker are included in the total expenses used to calculate the reimbursement, which Large Cap Growth has agreed to share with the Blocker. For the period ended February 28, 2023, the expenses of the Blocker amounted to $41,999.
At February 28, 2023, the Funds' contingent liabilities to NBIA under the agreements were as follows:
| | | Expenses Reimbursed in
Year Ended August 31, |
| | | | | | |
| | | Subject to Repayment until
August 31, |
| | | | | | |
Dividend Growth Institutional Class | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Emerging Markets Equity Institutional Class | | | | | | |
Emerging Markets Equity Class A | | | | | | |
Emerging Markets Equity Class C | | | | | | |
Emerging Markets Equity Class R3 | | | | | | |
Emerging Markets Equity Class R6 | | | | | | |
Equity Income Institutional Class | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Focus Institutional Class | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | Expenses Reimbursed in Year Ended August 31, |
| | | | | | |
| | | Subject to Repayment until August 31, |
| Contractual Expense Limitation(a) | | | | | |
Genesis Institutional Class | | | | | | |
| | | | | | |
Global Real Estate Institutional Class | | | | | | |
Global Real Estate Class A | | | | | | |
Global Real Estate Class C | | | | | | |
Greater China Equity Institutional Class | | | | | | |
Greater China Equity Class A | | | | | | |
Greater China Equity Class C | | | | | | |
International Equity Investor Class | | | | | | |
International Equity Trust Class | | | | | | |
International Equity Institutional Class | | | | | | |
International Equity Class A | | | | | | |
International Equity Class C | | | | | | |
International Equity Class R6 | | | | | | |
International Select Trust Class | | | | | | |
International Select Institutional Class | | | | | | |
International Select Class A | | | | | | |
International Select Class C | | | | | | |
International Select Class R3 | | | | | | |
International Select Class R6 | | | | | | |
International Small Cap Institutional Class | | | | | | |
International Small Cap Class A | | | | | | |
International Small Cap Class C | | | | | | |
International Small Cap Class R6 | | | | | | |
Intrinsic Value Institutional Class | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Large Cap Growth Trust Class | | | | | | |
Large Cap Growth Advisor Class | | | | | | |
Large Cap Growth Institutional Class | | | | | | |
| | | | | | |
| | | | | | |
Large Cap Growth Class R3 | | | | | | |
Large Cap Growth Class R6 | | | | | | |
Large Cap Value Trust Class | | | | | | |
Large Cap Value Advisor Class | | | | | | |
Large Cap Value Institutional Class | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | Expenses Reimbursed in Year Ended August 31, |
| | | | | | |
| | | Subject to Repayment until August 31, |
| Contractual Expense Limitation(a) | | | | | |
| | | | | | |
Mid Cap Growth Trust Class | | | | | | |
Mid Cap Growth Advisor Class | | | | | | |
Mid Cap Growth Institutional Class | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Mid Cap Intrinsic Value Investor Class | | | | | | |
Mid Cap Intrinsic Value Trust Class | | | | | | |
Mid Cap Intrinsic Value Institutional Class | | | | | | |
Mid Cap Intrinsic Value Class A | | | | | | |
Mid Cap Intrinsic Value Class C | | | | | | |
Mid Cap Intrinsic Value Class R3 | | | | | | |
Mid Cap Intrinsic Value Class R6 | | | | | | |
Multi-Cap Opportunities Institutional Class | | | | | | |
Multi-Cap Opportunities Class A | | | | | | |
Multi-Cap Opportunities Class C | | | | | | |
| | | | | | |
Real Estate Institutional Class | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Small Cap Growth Investor Class | | | | | | |
Small Cap Growth Trust Class | | | | | | |
Small Cap Growth Advisor Class | | | | | | |
Small Cap Growth Institutional Class | | | | | | |
| | | | | | |
| | | | | | |
Small Cap Growth Class R3 | | | | | | |
Small Cap Growth Class R6 | | | | | | |
Sustainable Equity Trust Class | | | | | | |
Sustainable Equity Institutional Class | | | | | | |
Sustainable Equity Class A | | | | | | |
Sustainable Equity Class C | | | | | | |
Sustainable Equity Class R3 | | | | | | |
Sustainable Equity Class R6 | | | | | | |
U.S. Equity Impact Institutional Class | | | | | | |
U.S. Equity Impact Class A | | | | | | |
U.S. Equity Impact Class C | | | | | | |
| Expense limitation per annum of the respective class’s average daily net assets. |
| Effective January 1, 2024, the expense limitation will be 0.65%. |
| Classes that have had changes to their respective limitations are noted below. |
| | |
Large Cap Growth Class R6 | | |
| In addition to the contractual undertaking described above, NBIA has voluntarily undertaken to waive fees and/or reimburse certain expenses so that their Operating Expenses, per annum of their respective average daily net assets, are limited to the percentages indicated below. Voluntary reimbursements are not subject to recovery by NBIA and are terminable by NBIA upon notice to the Fund.
|
| Voluntary Expense
Limitation | | Fees Voluntarily
Waived for the Six Months
Ended February 28, 2023 |
Mid Cap Intrinsic Value Investor Class | | | |
Mid Cap Intrinsic Value Trust Class | | | |
| | | |
Small Cap Growth Investor Class | | | |
Small Cap Growth Investor Class | | | |
Small Cap Growth Trust Class | | | |
Small Cap Growth Trust Class | | | |
Small Cap Growth Advisor Class | | | |
Small Cap Growth Advisor Class | | | |
Small Cap Growth Advisor Class | | | |
Each Fund has agreed that each of its respective classes will repay NBIA for fees and expenses waived or reimbursed for that class provided that repayment does not cause that class’s annual operating expenses to exceed its contractual expense limitation in place at the time the fees and expenses were waived or reimbursed, or the expense limitation in place at the time the Fund repays NBIA, whichever is lower. Any such repayment must be made within three years after the year in which NBIA incurred the expense.
During the six months ended February 28, 2023, the following classes repaid NBIA under their respective contractual expense limitation agreements as follows:
| |
| |
| |
Large Cap Growth Class R3 | |
NBIA retains Green Court Capital Management Limited ("Green Court") as the subadviser to Greater China Equity. Green Court is responsible for making and implementing investment decisions and for the day-to-day management of the Fund.
Each Fund also has a distribution agreement with Neuberger Berman BD LLC (the "Distributor") with respect to each class of shares. The Distributor acts as agent in arranging for the sale of class shares without sales commission or other compensation, except as described below, and bears the advertising and promotion expenses.
However, the Distributor receives fees from the Trust Class of each of Focus, International Select, Large Cap Growth, Large Cap Value, Mid Cap Intrinsic Value, Real Estate, Small Cap Growth and Sustainable Equity, and from the Advisor Class, Class A, Class C and Class R3 of each Fund that offers those classes under their distribution plans (each a "Plan", collectively, the "Plans") pursuant to Rule 12b-1 under the 1940 Act. The Plans provide that, as compensation for administrative and other services provided to these classes, the Distributor’s activities and expenses related to the sale and distribution of these classes, and ongoing services provided to investors in these classes, the Distributor receives from each of these respective 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. The Distributor receives this amount to provide distribution and shareholder servicing for these classes and pays a portion of it to institutions that provide such services. Those institutions may use the payments for, among other purposes, compensating employees engaged in sales and/or shareholder servicing. The amount of fees paid by each class during any year may be more or less than the cost of distribution and other services provided to that class. FINRA rules limit the amount of annual distribution fees that may be paid by a mutual fund and impose a ceiling on the cumulative distribution fees paid. The Trust’s Plans comply with those rules.
Class A shares of each Fund are generally sold with an initial sales charge of up to 5.75% and no contingent deferred sales charge ("CDSC"), except that a CDSC of 1.00% applies to certain redemptions made within 18 months following purchases of $1 million or more without an initial sales charge. Class C shares of each Fund are sold with no initial sales charge and a 1.00% CDSC if shares are sold within one year after purchase.
For the six months ended February 28, 2023, the Distributor, acting as underwriter and broker-dealer, received net initial sales charges from the purchase of Class A shares and CDSCs from the redemption of Class A and Class C shares as follows:
| | |
| | | | |
| | | | |
| | | | |
Emerging Markets Equity Class A | | | | |
Emerging Markets Equity Class C | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Global Real Estate Class A | | | | |
Global Real Estate Class C | | | | |
Greater China Equity Class A | | | | |
Greater China Equity Class C | | | | |
International Equity Class A | | | | |
International Equity Class C | | | | |
International Select Class A | | | | |
International Select Class C | | | | |
International Small Cap Class A | | | | |
International Small Cap Class C | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | |
| | | | |
| | | | |
| | | | |
Mid Cap Intrinsic Value Class A | | | | |
Mid Cap Intrinsic Value Class C | | | | |
Multi-Cap Opportunities Class A | | | | |
Multi-Cap Opportunities Class C | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Sustainable Equity Class A | | | | |
Sustainable Equity Class C | | | | |
U.S. Equity Impact Class A | | | | |
U.S. Equity Impact Class C | | | | |
Note C—Securities Transactions:
During the six months ended February 28, 2023, there were purchase and sale transactions of long-term securities (excluding written option contracts) as follows:
During the six months ended February 28, 2023, no brokerage commissions on securities transactions were paid to affiliated brokers.
Note D—Fund Share Transactions:
Share activity for the six months ended February 28, 2023, and for the year ended August 31, 2022, was as follows:
| For the Six Months Ended February 28, 2023 | For the Year Ended August 31, 2022 |
| | Shares
Issued on
Reinvestment
of Dividends
and
Distributions | | | | Shares
Issued on
Reinvestment
of Dividends
and
Distributions | | |
|
| | | | | | | | |
| For the Six Months Ended February 28, 2023 | For the Year Ended August 31, 2022 |
| | Shares Issued on Reinvestment of Dividends and Distributions | | | | Shares Issued on Reinvestment of Dividends and Distributions | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
| | | | | | | | |
| For the Six Months Ended February 28, 2023 | For the Year Ended August 31, 2022 |
| | Shares Issued on Reinvestment of Dividends and Distributions | | | | Shares Issued on Reinvestment of Dividends and Distributions | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| For the Six Months Ended February 28, 2023 | For the Year Ended August 31, 2022 |
| | Shares Issued on Reinvestment of Dividends and Distributions | | | | Shares Issued on Reinvestment of Dividends and Distributions | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| For the Six Months Ended February 28, 2023 | For the Year Ended August 31, 2022 |
| | Shares Issued on Reinvestment of Dividends and Distributions | | | | Shares Issued on Reinvestment of Dividends and Distributions | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| Period from January 11, 2022 (Commencement of Operations) to August 31, 2022. |
Note E—Line of Credit:
At February 28, 2023, each Fund was a participant in a syndicated committed, unsecured $700,000,000 line of credit (the "Credit Facility"), to be used only for temporary or emergency purposes. Series of other investment companies managed by NBIA also participate in this line of credit on substantially the same terms. Interest is charged on borrowings under this Credit Facility at the highest of (a) a federal funds effective rate plus 1.00% per annum, (b) a daily simple Secured Overnight Financing Rate ("SOFR") plus 1.10% per annum, and (c) an overnight bank funding rate plus 1.00% per annum. The Credit Facility has an annual commitment fee of 0.15% per annum of the available line of credit, which is paid quarterly. Each Fund that is a participant has agreed to pay its pro rata share of the annual commitment fee, based on the ratio of its individual net assets to the net assets of all participants at the time the fee is due, and interest charged on any borrowing made by such Fund and other costs incurred by such Fund. Because several mutual funds participate in the Credit Facility, there is no assurance that an individual fund will have access to all or any part of the $700,000,000 at any particular time. There were no loans outstanding under the Credit Facility at February 28, 2023. During the six months ended February 28, 2023, none of the Funds utilized the Credit Facility.
Note F—Investments in Affiliates(a):
| | | Sales
Proceeds/
Return of
Capital | Change in
Net Unrealized
Appreciation/
(Depreciation)
from
Investments
in Affiliated
Persons | Net Realized
Gain/(Loss)
from
Investments
in Affiliated
Persons | Distributions
from
Investments
in Affiliated
Persons | Shares
Held at
February 28,
2023 | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Sub-total for
affiliates held
as of 2/28/23(b) | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Sub-total for securities no longer affiliated as of 2/28/23(c) | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Sub-total for
affiliates held
as of 2/28/23(d) | | | | | | | | |
| Non-income producing security. |
| Affiliated persons, as defined in the 1940 Act. |
| At February 28, 2023, these securities amounted to 3.90% of net assets of Genesis. |
| At February 28, 2023, the issuers of these securities were no longer affiliated with Genesis. |
| At February 28, 2023, these securities amounted to 0.56% of net assets of Intrinsic Value. |
Other: At February 28, 2023, affiliated persons owned outstanding shares of the following Funds:
| Affiliated Person(s)
Percentage
Ownership of
Outstanding Shares(a) |
| |
| |
| Affiliated Person(s) Percentage Ownership of Outstanding Shares(a) |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| Ratios that do not round to 0.01% are presented as 0.00%. |
Note G—Recent Accounting Pronouncement:
In June 2022, FASB issued Accounting Standards Update No. 2022-03, "Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions" ("ASU 2022-03"). ASU 2022-03 clarifies the guidance in ASC 820, related to the measurement of the fair value of an equity security subject to contractual sale restrictions, where it eliminates the ability to apply a discount to the fair value of these securities, and introduces disclosure requirements related to such equity securities. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023, and allows for early adoption. Management is currently evaluating the impact of applying this update.
Note H—Other Matters:
Coronavirus: The outbreak of the novel coronavirus in many countries has, among other things, disrupted global travel and supply chains, and adversely impacted global commercial activity, the transportation industry and commodity prices in the energy sector. The impact of this virus has negatively affected and may continue to affect the economies of many nations, individual companies and the global securities and commodities markets, including liquidity and volatility. The development and fluidity of this situation precludes any prediction as to its ultimate impact, which may have a continued adverse effect on global economic and market conditions. Such conditions (which may be across industries, sectors or geographies) have impacted and may continue to impact certain issuers of the securities held by the Funds and in turn, may impact the financial performance of the Funds.
Russia's Invasion of Ukraine: Russia’s invasion of Ukraine, and corresponding events in late February 2022, have had, and could continue to have, severe adverse effects on regional and global economic markets for securities and commodities. Following Russia’s actions, various governments, including the United States, have issued broad-ranging economic sanctions against Russia. The current events have had, and could continue to have, an adverse effect on global markets performance and liquidity, thereby negatively affecting the value of a Fund's investments beyond any direct exposure to Russian or Ukrainian issuers. The duration of ongoing hostilities and the vast array of sanctions and related events cannot be predicted. Those events present material uncertainty and risk with respect to markets globally and the performance of a Fund and its investments or operations could be negatively impacted.
Note I—Subsequent Event:
On March 30, 2023, the Board approved:
•
the conversion of Greater China Equity to a newly organized series of Neuberger Berman ETF Trust; and
•
the conversion of Global Real Estate to a newly organized series of Neuberger Berman ETF Trust (collectively, the “Conversions”).
It is anticipated that each Conversion will be effected through the reorganization of each of Greater China Equity and Global Real Estate into an ETF. After the Conversions, shareholders of each of Greater China Equity and Global Real Estate will hold shares of the new ETF instead of shares of their respective Funds. Prior to the Conversions, existing shareholders of each of Greater China Equity and Global Real Estate will receive a combined information statement/prospectus describing in detail both the Conversion and the respective ETF involved in the Conversion.
Note J—Unaudited Financial Information:
The financial information included in this interim report is taken from the records of each Fund without audit by an independent registered public accounting firm. Annual reports contain audited financial statements.
The following tables include selected data for a share outstanding throughout each period and other performance information derived from the Financial Statements. Amounts that do not round to $0.01 or $(0.01) per share are presented as $0.00 or $(0.00), respectively. Ratios that do not round to 0.01% or (0.01)% are presented as 0.00% or (0.00)%, respectively. Net Assets with a zero balance, if any, may reflect actual amounts rounding to less than $0.1 million. A "—" indicates that the line item was not applicable in the corresponding period.
| Net Asset
Value,
Beginning
of Period | Net
Investment
Income/
(Loss)a | 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 | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
See Notes to Financial Highlights
Voluntary
Contribution
from
Management | Net Asset
Value,
End of
Period | | Net Assets,
End of
Period
(in millions) | Ratio
of Gross
Expenses to
Average Net
Assetsd | Ratio
of Net
Expenses to
Average
Net
Assets | Ratio
of Net
Investment
Income/
(Loss)
to
Average
Net
Assets | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Financial Highlights (cont’d)
| Net Asset
Value,
Beginning
of Period | Net
Investment
Income/
(Loss)a | 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 | | |
Emerging Markets Equity Fund |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
See Notes to Financial Highlights
Voluntary
Contribution
from
Management | Net Asset
Value,
End of
Period | | Net Assets,
End of
Period
(in millions) | Ratio
of Gross
Expenses to
Average Net
Assetsd | Ratio
of Net
Expenses to
Average
Net
Assets | Ratio
of Net
Investment
Income/
(Loss)
to
Average
Net
Assets | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Financial Highlights (cont’d)
| Net Asset
Value,
Beginning
of Period | Net
Investment
Income/
(Loss)a | 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 | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
See Notes to Financial Highlights
Voluntary
Contribution
from
Management | Net Asset
Value,
End of
Period | | Net Assets,
End of
Period
(in millions) | Ratio
of Gross
Expenses to
Average Net
Assetsd | Ratio
of Net
Expenses to
Average
Net
Assets | Ratio
of Net
Investment
Income/
(Loss)
to
Average
Net
Assets | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
Financial Highlights (cont’d)
| Net Asset
Value,
Beginning
of Period | Net
Investment
Income/
(Loss)a | 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 | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
See Notes to Financial Highlights
Voluntary
Contribution
from
Management | Net Asset
Value,
End of
Period | | Net Assets,
End of
Period
(in millions) | Ratio
of Gross
Expenses to
Average Net
Assetsd | Ratio
of Net
Expenses to
Average
Net
Assets | Ratio
of Net
Investment
Income/
(Loss)
to
Average
Net
Assets | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Financial Highlights (cont’d)
| Net Asset
Value,
Beginning
of Period | Net
Investment
Income/
(Loss)a | 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 | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
See Notes to Financial Highlights
Voluntary
Contribution
from
Management | Net Asset
Value,
End of
Period | | Net Assets,
End of
Period
(in millions) | Ratio
of Gross
Expenses to
Average Net
Assetsd | Ratio
of Net
Expenses to
Average
Net
Assets | Ratio
of Net
Investment
Income/
(Loss)
to
Average
Net
Assets | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Financial Highlights (cont’d)
| Net Asset
Value,
Beginning
of Period | Net
Investment
Income/
(Loss)a | 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 | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
|
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
Greater China Equity Fund |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
See Notes to Financial Highlights
Voluntary
Contribution
from
Management | Net Asset
Value,
End of
Period | | Net Assets,
End of
Period
(in millions) | Ratio
of Gross
Expenses to
Average Net
Assetsd | Ratio
of Net
Expenses to
Average
Net
Assets | Ratio
of Net
Investment
Income/
(Loss)
to
Average
Net
Assets | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Financial Highlights (cont’d)
| Net Asset
Value,
Beginning
of Period | Net
Investment
Income/
(Loss)a | 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 | | |
Greater China Equity Fund (cont’d) |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
International Equity Fund |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
See Notes to Financial Highlights
Voluntary
Contribution
from
Management | Net Asset
Value,
End of
Period | | Net Assets,
End of
Period
(in millions) | Ratio
of Gross
Expenses to
Average Net
Assetsd | Ratio
of Net
Expenses to
Average
Net
Assets | Ratio
of Net
Investment
Income/
(Loss)
to
Average
Net
Assets | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Financial Highlights (cont’d)
| Net Asset
Value,
Beginning
of Period | Net
Investment
Income/
(Loss)a | 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 | | |
International Equity Fund (cont’d) |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
|
International Select Fund |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
See Notes to Financial Highlights
Voluntary
Contribution
from
Management | Net Asset
Value,
End of
Period | | Net Assets,
End of
Period
(in millions) | Ratio
of Gross
Expenses to
Average Net
Assetsd | Ratio
of Net
Expenses to
Average
Net
Assets | Ratio
of Net
Investment
Income/
(Loss)
to
Average
Net
Assets | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Financial Highlights (cont’d)
| Net Asset
Value,
Beginning
of Period | Net
Investment
Income/
(Loss)a | 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 | | |
International Select Fund (cont’d) |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
See Notes to Financial Highlights
Voluntary
Contribution
from
Management | Net Asset
Value,
End of
Period | | Net Assets,
End of
Period
(in millions) | Ratio
of Gross
Expenses to
Average Net
Assetsd | Ratio
of Net
Expenses to
Average
Net
Assets | Ratio
of Net
Investment
Income/
(Loss)
to
Average
Net
Assets | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Financial Highlights (cont’d)
| Net Asset
Value,
Beginning
of Period | Net
Investment
Income/
(Loss)a | 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 | | |
International Small Cap Fund |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
See Notes to Financial Highlights
Voluntary
Contribution
from
Management | Net Asset
Value,
End of
Period | | Net Assets,
End of
Period
(in millions) | Ratio
of Gross
Expenses to
Average Net
Assetsd | Ratio
of Net
Expenses to
Average
Net
Assets | Ratio
of Net
Investment
Income/
(Loss)
to
Average
Net
Assets | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Financial Highlights (cont’d)
| Net Asset
Value,
Beginning
of Period | Net
Investment
Income/
(Loss)a | 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 | | |
Intrinsic Value Fund (cont’d) |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
See Notes to Financial Highlights
Voluntary
Contribution
from
Management | Net Asset
Value,
End of
Period | | Net Assets,
End of
Period
(in millions) | Ratio
of Gross
Expenses to
Average Net
Assetsd | Ratio
of Net
Expenses to
Average
Net
Assets | Ratio
of Net
Investment
Income/
(Loss)
to
Average
Net
Assets | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Financial Highlights (cont’d)
| Net Asset
Value,
Beginning
of Period | Net
Investment
Income/
(Loss)a | 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 | | |
Large Cap Growth Fund (cont’d) |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
See Notes to Financial Highlights
Voluntary
Contribution
from
Management | Net Asset
Value,
End of
Period | | Net Assets,
End of
Period
(in millions) | Ratio
of Gross
Expenses to
Average Net
Assetsd | Ratio
of Net
Expenses to
Average
Net
Assets | Ratio
of Net
Investment
Income/
(Loss)
to
Average
Net
Assets | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Financial Highlights (cont’d)
| Net Asset
Value,
Beginning
of Period | Net
Investment
Income/
(Loss)a | 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 | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
See Notes to Financial Highlights
Voluntary
Contribution
from
Management | Net Asset
Value,
End of
Period | | Net Assets,
End of
Period
(in millions) | Ratio
of Gross
Expenses to
Average Net
Assetsd | Ratio
of Net
Expenses to
Average
Net
Assets | Ratio
of Net
Investment
Income/
(Loss)
to
Average
Net
Assets | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Financial Highlights (cont’d)
| Net Asset
Value,
Beginning
of Period | Net
Investment
Income/
(Loss)a | 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 | | |
Large Cap Value Fund (cont’d) |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
See Notes to Financial Highlights
Voluntary
Contribution
from
Management | Net Asset
Value,
End of
Period | | Net Assets,
End of
Period
(in millions) | Ratio
of Gross
Expenses to
Average Net
Assetsd | Ratio
of Net
Expenses to
Average
Net
Assets | Ratio
of Net
Investment
Income/
(Loss)
to
Average
Net
Assets | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
Financial Highlights (cont’d)
| Net Asset
Value,
Beginning
of Period | Net
Investment
Income/
(Loss)a | 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 | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
See Notes to Financial Highlights
Voluntary
Contribution
from
Management | Net Asset
Value,
End of
Period | | Net Assets,
End of
Period
(in millions) | Ratio
of Gross
Expenses to
Average Net
Assetsd | Ratio
of Net
Expenses to
Average
Net
Assets | Ratio
of Net
Investment
Income/
(Loss)
to
Average
Net
Assets | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Financial Highlights (cont’d)
| Net Asset
Value,
Beginning
of Period | Net
Investment
Income/
(Loss)a | 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 | | |
Mid Cap Growth Fund (cont’d) |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
Mid Cap Intrinsic Value Fund |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
See Notes to Financial Highlights
Voluntary
Contribution
from
Management | Net Asset
Value,
End of
Period | | Net Assets,
End of
Period
(in millions) | Ratio
of Gross
Expenses to
Average Net
Assetsd | Ratio
of Net
Expenses to
Average
Net
Assets | Ratio
of Net
Investment
Income/
(Loss)
to
Average
Net
Assets | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Financial Highlights (cont’d)
| Net Asset
Value,
Beginning
of Period | Net
Investment
Income/
(Loss)a | 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 | | |
Mid Cap Intrinsic Value Fund (cont’d) |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
See Notes to Financial Highlights
Voluntary
Contribution
from
Management | Net Asset
Value,
End of
Period | | Net Assets,
End of
Period
(in millions) | Ratio
of Gross
Expenses to
Average Net
Assetsd | Ratio
of Net
Expenses to
Average
Net
Assets | Ratio
of Net
Investment
Income/
(Loss)
to
Average
Net
Assets | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Financial Highlights (cont’d)
| Net Asset
Value,
Beginning
of Period | Net
Investment
Income/
(Loss)a | 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 | | |
Multi-Cap Opportunities Fund |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
|
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
See Notes to Financial Highlights
Voluntary
Contribution
from
Management | Net Asset
Value,
End of
Period | | Net Assets,
End of
Period
(in millions) | Ratio
of Gross
Expenses to
Average Net
Assetsd | Ratio
of Net
Expenses to
Average
Net
Assets | Ratio
of Net
Investment
Income/
(Loss)
to
Average
Net
Assets | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Financial Highlights (cont’d)
| Net Asset
Value,
Beginning
of Period | Net
Investment
Income/
(Loss)a | 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 | | |
Real Estate Fund (cont’d) |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
See Notes to Financial Highlights
Voluntary
Contribution
from
Management | Net Asset
Value,
End of
Period | | Net Assets,
End of
Period
(in millions) | Ratio
of Gross
Expenses to
Average Net
Assetsd | Ratio
of Net
Expenses to
Average
Net
Assets | Ratio
of Net
Investment
Income/
(Loss)
to
Average
Net
Assets | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
Financial Highlights (cont’d)
| Net Asset
Value,
Beginning
of Period | Net
Investment
Income/
(Loss)a | 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 | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
See Notes to Financial Highlights
Voluntary
Contribution
from
Management | Net Asset
Value,
End of
Period | | Net Assets,
End of
Period
(in millions) | Ratio
of Gross
Expenses to
Average Net
Assetsd | Ratio
of Net
Expenses to
Average
Net
Assets | Ratio
of Net
Investment
Income/
(Loss)
to
Average
Net
Assets | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Financial Highlights (cont’d)
| Net Asset
Value,
Beginning
of Period | Net
Investment
Income/
(Loss)a | 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 | | |
Small Cap Growth Fund (cont’d) |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
See Notes to Financial Highlights
Voluntary
Contribution
from
Management | Net Asset
Value,
End of
Period | | Net Assets,
End of
Period
(in millions) | Ratio
of Gross
Expenses to
Average Net
Assetsd | Ratio
of Net
Expenses to
Average
Net
Assets | Ratio
of Net
Investment
Income/
(Loss)
to
Average
Net
Assets | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Financial Highlights (cont’d)
| Net Asset
Value,
Beginning
of Period | Net
Investment
Income/
(Loss)a | 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 | | |
Sustainable Equity Fund (cont’d) |
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
See Notes to Financial Highlights
Voluntary
Contribution
from
Management | Net Asset
Value,
End of
Period | | Net Assets,
End of
Period
(in millions) | Ratio
of Gross
Expenses to
Average Net
Assetsd | Ratio
of Net
Expenses to
Average
Net
Assets | Ratio
of Net
Investment
Income/
(Loss)
to
Average
Net
Assets | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Financial Highlights (cont’d)
| Net Asset
Value,
Beginning
of Period | Net
Investment
Income/
(Loss)a | 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 | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
See Notes to Financial Highlights
Voluntary
Contribution
from
Management | Net Asset
Value,
End of
Period | | Net Assets,
End of
Period
(in millions) | Ratio
of Gross
Expenses to
Average Net
Assetsd | Ratio
of Net
Expenses to
Average
Net
Assets | Ratio
of Net
Investment
Income/
(Loss)
to
Average
Net
Assets | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Notes to Financial Highlights Equity Funds (Unaudited)
| Calculated based on the average number of shares outstanding during each fiscal period. |
| Total return based on per share NAV reflects the effects of changes in NAV on the performance of each Fund during each fiscal period. Returns assume income dividends and other distributions, if any, were reinvested, but do not reflect the effect of sales charges. Results represent past performance and do not indicate future results. Current returns may be lower or higher than the performance data quoted. Investment returns and principal will fluctuate and shares, when redeemed, may be worth more or less than original cost. Total return would have been lower if Management had not reimbursed and/or waived certain expenses. Total return would have been higher if Management had not recouped previously reimbursed and/or waived expenses. |
| Except for the Fund classes listed below, the class action proceeds listed in Note A of the Notes to Financial Statements, if any, had no impact on the Funds’ total returns for the six months ended February 28, 2023. Had the Fund classes listed below not received class action proceeds in 2023, total return on per share NAV for the six months ended February 28, 2023, would have been: |
Multi-Cap Opportunities Institutional Class | |
Multi-Cap Opportunities Class A | |
Multi-Cap Opportunities Class C | |
Multi-Cap Opportunities Class E | |
| Except for the Fund classes listed below, the class action proceeds received in 2022, 2021, 2019, and/or 2018, if any, had no impact on the Funds’ total returns for the years ended August 31, 2022, 2021, 2019, and/or 2018. Had the Fund classes listed below not received class action proceeds in 2022, 2021, and/or 2019, total return based on per share NAV for the years ended August 31, 2022, 2021 and/or 2019 would have been: |
| | | |
International Equity Investor Class | | | |
International Equity Trust Class | | | |
International Equity Institutional Class | | | |
International Equity Class A | | | |
International Equity Class C | | | |
International Equity Class R6 | | | |
International Select Trust Class | | | |
International Select Institutional Class | | | |
International Select Class A | | | |
International Select Class C | | | |
International Select Class R3 | | | |
International Select Class R6 | | | |
Large Cap Value Investor Class | | | |
Large Cap Value Trust Class | | | |
Large Cap Value Advisor Class | | | |
| | | |
| | | |
Multi-Cap Opportunities Institutional Class | | | |
Multi-Cap Opportunities Class A | | | |
Multi-Cap Opportunities Class C | | | |
Multi-Cap Opportunities Class E | | | |
Small Cap Growth Investor Class | | | |
Small Cap Growth Trust Class | | | |
Notes to Financial Highlights Equity Funds (Unaudited) (cont’d)
| | | |
Small Cap Growth Advisor Class | | | |
Small Cap Growth Institutional Class | | | |
| | | |
| | | |
Small Cap Growth Class R3 | | | |
Small Cap Growth Class R6 | | | |
| 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. |
| |
| |
| After repayment of expenses previously reimbursed and/or fees previously waived pursuant to the terms of the contractual expense limitation agreements by Management, as applicable. Had the Fund not made such repayments, the annualized ratios of net expenses to average net assets would have been: |
| Six Months
Ended
February 28, | |
| | | | | | |
Emerging Markets Equity Institutional Class | | | | | | |
Emerging Markets Equity Class R3 | | | | | | |
Emerging Markets Equity Class R6 | | | | | | |
Focus Institutional Class | | | | | | |
| | | | | | |
| | | | | | |
Intrinsic Value Institutional Class | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Large Cap Growth Class R3 | | | | | | |
Large Cap Growth Class R6 | | | | | | |
Large Cap Value Institutional Class | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Mid Cap Intrinsic Value Class R6 | | | | | | |
| After the close of business on December 7, 2018, the Funds' applicable classes underwent a stock split or reverse stock split. The per share data presented here has been retroactively adjusted to reflect this split. |
| The date investment operations commenced. |
| Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the year ended August 31, 2019, for Intrinsic Value, Large Cap Value, Mid Cap Intrinsic Value and Small Cap Growth and for the year ended August 31, 2022, for Equity Income, Genesis, International Equity, Large Cap Value, Multi-Cap Opportunities and Real Estate. |
| After the close of business on February 23, 2018, the Funds’ applicable classes underwent a stock split or reverse stock split. The per share data presented here has been retroactively adjusted to reflect this split. |
Notes to Financial Highlights Equity Funds (Unaudited) (cont’d)
| After the close of business on December 8, 2017, the Funds’ applicable classes underwent a stock split or reverse stock split. The per share data presented here has been retroactively adjusted to reflect this split. |
| Represents the annualized ratio of net expenses to average daily net assets after utilization of the line of credit by Greater China Equity (2019) and International Small Cap (2020) and/or reimbursement of expenses and/or waiver of a portion of the investment management fee by Management. Had Greater China Equity and International Small Cap not utilized the line of credit, and/or had Management not undertaken such action, the annualized ratios of net expenses to average daily net assets would have been: |
| |
| | |
Greater China Equity Institutional Class | | |
Greater China Equity Class A | | |
Greater China Equity Class C | | |
International Small Cap Institutional Class | | |
International Small Cap Class A | | |
International Small Cap Class C | | |
International Small Cap Class R6 | | |
| After the close of business on July 23, 2021, the Funds’ applicable classes underwent a stock split or reverse stock split. The per share data presented here has been retroactively adjusted to reflect this split. |
| Had International Equity not received the voluntary contribution in 2020, the total return based on per share NAV for the year ended August 31, 2020 would have been: |
| Year Ended August 31, 2020 |
International Equity Investor Class | |
International Equity Trust Class | |
International Equity Institutional Class | |
International Equity Class A | |
International Equity Class C | |
International Equity Class R6 | |
| This information has been audited by a different independent public accounting firm. |
| Consolidated financial highlights. See Note A in the Notes to Consolidated Financial Statements. |
| After the close of business on August 16, 2019, Large Cap Value acquired all of the net assets of Neuberger Berman Value Fund in a tax-free exchange of shares pursuant to a Plan of Reorganization and Dissolution approved by the Board. Portfolio turnover excludes purchases of $30,333,739 of securities acquired, and there were no sales made following a purchase-of-assets transaction relative to the merger. |
| Organization expense, which is a non-recurring expense, is included in these ratios on a non-annualized basis. |
Investment Manager and Administrator
Neuberger Berman Investment Advisers LLC
1290 Avenue of the Americas
New York, NY 10104-0002
Shareholder Services
800.877.9700 or 212.476.8800
Intermediary Client Services 800.366.6264
Distributor
Neuberger Berman BD LLC
1290 Avenue of the Americas
New York, NY 10104-0002
Shareholder Services
800.877.9700 or 212.476.8800
Intermediary Client Services 800.366.6264
Subadviser
Green Court Capital Management Limited
20th Floor
Jardine House
1 Connaught Place
Hong Kong
Custodian
State Street Bank and Trust Company
One Lincoln Street
Boston, MA 02111
Shareholder Servicing Agent
SS&C Global Investor & Distribution Solutions
430 West 7th Street, Suite 219189
Kansas City, MO 64105-1407
For Investor, Trust, Advisor & Institutional Class Shareholders address correspondence to:
Neuberger Berman Funds
PO Box 219189
Kansas City, MO 64121-9189
Shareholder Services 800.877.9700 or 212.476.8800
Intermediary Client Services 800.366.6264
For Class A, Class C, Class R3 and Class R6 Shareholders:
Please contact your investment provider
Legal Counsel
K&L Gates LLP
1601 K Street, NW
Washington, DC 20006-1600
Independent Registered Public Accounting Firm
Ernst & Young LLP
200 Clarendon Street
Boston, MA 02116
Proxy Voting Policies and Procedures
A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to portfolio securities is available, without charge, by calling 800-877-9700 (toll-free) and on the SEC’s website 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 upon request, without charge, by calling 800-877-9700 (toll-free), on the SEC’s website at www.sec.gov, and on Neuberger Berman’s website at www.nb.com.
Quarterly Portfolio Schedule
The Trust files a complete schedule of portfolio holdings for each Fund with the SEC for the first and third quarters of each fiscal year as an exhibit to its report on Form N-PORT. The Trust’s Form N-PORT is available on the SEC’s website at www.sec.gov. The portfolio holdings information on Form N-PORT is available upon request, without charge, by calling 800-877-9700 (toll-free).
Board Consideration of the Management Agreements and Sub-Advisory Agreement
On an annual basis, the Board of Trustees (the "Board" or "Trustees") of Neuberger Berman Equity Funds (the "Trust"), including the Trustees who are not "interested persons" of the Trust or of Neuberger Berman Investment Advisers LLC ("Management") (including its affiliates), as such term is defined under the Investment Company Act of 1940, as amended ("1940 Act"), ("Independent Fund Trustees"), considers whether to continue the management agreements with Management (the "Management Agreements") with respect to each series (each a "Fund") and the sub-advisory agreement between Management and Green Court Capital Management Limited ("Green Court") (the "Sub-Advisory Agreement" and collectively with the Management Agreement, the "Agreements") with respect to Neuberger Berman Greater China Equity Fund. Throughout the process, the Independent Fund Trustees are advised by counsel that is experienced in 1940 Act matters and that is independent of Management ("Independent Counsel"). At a meeting held on September 29, 2022, the Board, including the Independent Fund Trustees, approved the continuation of the Agreements for each Fund.
In evaluating the Agreements with respect to each Fund, the Board, including the Independent Fund Trustees, reviewed extensive materials provided by Management in response to questions submitted by the Independent Fund Trustees and Independent Counsel, and by Management (for Green Court), and met with senior representatives of Management regarding its personnel, operations, and profitability as they relate to the Funds. The annual contract review extends over at least two regular meetings of the Board to ensure that Management and Green Court have time to respond to any questions the Independent Fund Trustees may have on their initial review of the materials and that the Independent Fund Trustees have time to consider those responses. Additionally, the Board considered the impact of significant periods of market volatility that occurred during and after the period for which information was requested in conducting its evaluation of Management and Green Court.
In connection with its deliberations, the Board also considered the broad range of information relevant to the annual contract review that is provided to the Board (including its various standing committees) at meetings throughout the year, including reports on investment performance, portfolio risk, liquidity management, and other portfolio information for each Fund, including any use of derivatives, as well as periodic reports on, among other matters, pricing and valuation; quality and cost of portfolio trade execution; compliance; and shareholder and other services provided by Management and its affiliates and Green Court. The Contract Review Committee, which is comprised solely of Independent Fund Trustees, was established by the Board to assist in its evaluation and analysis of materials for the annual contract review. The Board has also established other committees that focus throughout the year on specific areas relevant to the annual contract review, such as Fund performance or compliance matters, and that are charged with specific responsibilities regarding the annual contract review. Those committees provide reports to the full Board, including the members of the Contract Review Committee,
which consider that information as part of the annual contract review process. The Contract Review Committee annually considers and updates the questions it asks of Management in light of legal advice furnished to it by Independent Counsel; its own business judgment; and developments in the industry, in the markets, in mutual fund regulation and litigation, and in Management’s business model.
The Independent Fund Trustees received from Independent Counsel a memorandum discussing the legal standards for their consideration of the proposed continuation of the Agreements. During the course of the year and during their deliberations regarding the annual contract review, the Contract Review Committee and the Independent Fund Trustees met with Independent Counsel separately from representatives of Management.
Provided below is a description of the Board’s contract approval process and material factors that the Board considered at its meetings regarding renewals of the Agreements and the compensation to be paid thereunder. In connection with its approval of the continuation of the Agreements, the Board evaluated the terms of the Agreements, the overall fairness of the Agreements to each Fund, and whether the Agreements were in the best interests of each respective Fund and its shareholders. The Board’s determination to approve the continuation of the Agreements was based on a comprehensive consideration of all information provided to the Board throughout the year and specifically in connection with the annual contract review. The Board considered each Fund’s investment management and sub-advisory agreements separately from those of the other Funds.
This description is not intended to include all of the factors considered by the Board. The Board members did not identify any particular information or factor that was all-important or controlling, and each Trustee may have attributed different weights to the various factors. The Board focused on the costs and benefits of the Agreements to each Fund and, through the Fund, its shareholders.
Nature, Extent, and Quality of Services
With respect to the nature, extent, and quality of the services provided, the Board considered the investment philosophy and decision-making processes of, and the qualifications, experience, and capabilities of, and the resources available to, the portfolio management personnel of Management and Green Court who perform services for the Funds. The Board noted that Management also provides certain administrative services, including fund accounting and compliance services. The Board also considered Management’s and Green Court’s policies and practices regarding brokerage, commissions, other trading costs, and allocation of portfolio transactions, and reviewed the quality of the execution services that Management had provided, noting that Management monitored the quality of execution provided by Green Court. The Board also reviewed Management's use of brokers to execute Fund transactions that provide research services to Management. Moreover, the Board considered Management’s approach to potential conflicts of interest both generally and between the Funds’ investments and those of other funds or accounts managed by Management and Green Court. The Board also noted that Management had increased its capabilities with respect to environmental, social, and corporate governance matters and considered how that might impact the relevant Funds. The Board noted the additional responsibilities of Management in administering the liquidity risk management program.
The Board recognized the extensive range of services that Management provides to the Funds beyond the investment management services. The Board noted that Management is also responsible for monitoring compliance with the Fund’s investment objectives, policies, and restrictions, as well as compliance with applicable law, including implementing rulemaking initiatives of the U.S. Securities and Exchange Commission. The Board considered that Management assumes significant ongoing entrepreneurial and business risks as the investment adviser and sponsor for the Funds, for which it is entitled to reasonable compensation. The Trustees also considered that Management’s responsibilities include continual management of investment, operational, cybersecurity, enterprise, legal, regulatory, and compliance risks as they relate to the Funds, and the Board considers on a regular basis information regarding Management’s processes for monitoring and managing risk. In addition, the Board also noted that when Management launches a new fund or share class, it assumes
entrepreneurial risk with respect to that fund or share class, and that some funds and share classes have been liquidated without ever having been profitable to Management.
The Board also reviewed and evaluated Management’s activities under its contractual obligation to oversee the Funds’ various outside service providers, including its renegotiation of certain service providers’ fees and its evaluation of service providers’ infrastructure, cybersecurity programs, compliance programs, and business continuity programs, among other matters. The Board considered that Management's Chief Information Security Officer had also evaluated Green Court’s responses on questions of cybersecurity. The Board also considered Management’s ongoing development of its own infrastructure and information technology to support the Funds through, among other things, cybersecurity, business continuity planning, and risk management. The Board noted Management’s and Green Court’s largely seamless implementation of their business continuity plan in response to the COVID-19 pandemic and their success in continuously providing services to the Funds notwithstanding the disruptions caused by the pandemic. In addition, the Board noted the positive compliance history of Management and Green Court, as no significant compliance problems were reported to the Board with respect to either firm. The Board also considered the general structure of the portfolio managers’ compensation and whether this structure provides appropriate incentives to act in the best interests of the Funds. The Board also considered the ability of Management and Green Court to attract and retain qualified personnel to service the Funds.
As in past years, the Board also considered the manner in which Management and Green Court addressed various matters that arose during the year, some of them a result of developments in the broader fund industry or the regulations governing it. In addition, the Board considered actions taken by Management and Green Court in response to market conditions over the past year, such as changes in interest rates and the increase in market volatility, and considered the overall performance of Management and Green Court in this context.
Fund Performance
The Board requested a report from an outside consulting firm that specializes in the analysis of fund industry data that compared each Fund’s performance, along with its fees and other expenses, to a group of industry peers ("Expense Group") and to a broader universe of funds pursuing generally similar strategies with the same investment classification and/or objective ("Performance Universe"). The Board considered each Fund’s performance and fees in light of the limitations inherent in the methodology for constructing such comparative groups and determining which investment companies should be included in the comparative groups, noting differences as compared to certain fund industry ranking and rating systems. The Board also considered the impact and inherent limitation on the comparisons due to the number of funds included in certain of the Funds’ Expense Groups and Performance Universes.
With respect to investment performance, the Board considered information regarding each Fund’s short-, intermediate- and long-term performance, as applicable, net of the Fund’s fees and expenses, on an absolute basis, relative to a benchmark index that does not deduct the fees or expenses of investing, and compared to the performance of its Expense Group and Performance Universe, each constructed by the consulting firm. The Board also reviewed performance in relation to certain measures of the degree of investment risk undertaken by the portfolio managers.
In the case of underperformance for any of the periods reported, the Board considered the magnitude and duration of that underperformance relative to the Performance Universe and/or the benchmark (e.g., the amount by which a Fund underperformed, including, for example, whether the Fund slightly underperformed or significantly underperformed its benchmark). For those Funds that the Board identified as having underperformed their benchmark indices, Expense Group, and/or Performance Universe to an extent, or over a period of time, that the Board felt warranted additional inquiry, the Board discussed with Management each such Fund’s performance, potential reasons for the relative performance, and, if necessary, steps that Management had taken, or intended to take, to improve performance. The Board also met with the portfolio managers of certain Funds during the 12
months prior to voting on the contract renewal to discuss the Funds’ performance. The Board also considered Management’s responsiveness with respect to the relative performance. The Board recognized that the performance data reflects a snapshot of a period as of a particular date and that selecting a different performance period could produce significantly different results. The Board further acknowledged that long-term performance could be impacted by even one period of significant outperformance or underperformance, and that a single investment theme could disproportionately affect performance. In this regard, the Board noted that performance, especially short-term performance, is only one of the factors that it deems relevant to its consideration of the Agreements and that, after considering all relevant factors, it determined to approve the continuation of the Agreements notwithstanding a Fund’s relative performance.
Fee Rates, Profitability, and Fall-out Benefits
With respect to the overall fairness of the Agreements, the Board considered the fee structure for each Fund under the Agreements as compared to the Expense Group provided by the consulting firm, as discussed above. The Board reviewed a comparison of each Fund’s management fee to its Expense Group. The Board noted that the comparative management fee analysis includes, in each Fund’s management fee, the separate administrative fees paid to Management. However, the Board noted that some funds in the Expense Group pay directly from fund assets for certain services that Management covers out of the administration fees for the Funds. Accordingly, the Board also considered each Fund’s total expense ratio as compared with its Expense Group as a way of taking account of these differences.
The Board compared each Fund’s contractual and actual management fees to the median of the contractual and actual management fees, respectively, of that Fund’s Expense Group. (The actual management fees are the contractual management fees reduced by any fee waivers or other adjustments.) The Board also compared each Fund’s total expenses to the median of the total expenses of that Fund’s Expense Group. Where a Fund’s management fee or total expenses were higher than the Expense Group median, the Board considered whether specific portfolio management, administration or oversight needs contributed to the Fund’s management fee or total expenses. The Board also noted that for some classes of certain Funds, the overall expense ratio is maintained through a contractual or voluntary fee cap and/or expense reimbursements by Management.
In concluding that the benefits accruing to Management and its affiliates, as well as to Green Court, by virtue of their relationship with each Fund were reasonable in light of the costs of providing the investment advisory and other services and the benefits accruing to that Fund, the Board reviewed specific data as to Management’s and Green Court’s estimated profit or loss on each Fund for a recent period on a pre-tax basis without regard to distribution expenses. (The Board also reviewed data on Management’s estimated profit or loss on each Fund after distribution expenses and taxes were factored in, as indicators of the health of the business and the extent to which Management is directing its profits into the growth of the business.) The Board considered the cost allocation methodology that Management used in developing its estimated profitability figures. In recent years, the Board engaged an independent forensic accountant to review the profitability methodology utilized by Management when preparing this information and discussed with the consultant its conclusion that Management’s process for calculating and reporting its estimated profit or loss was not unreasonable.
Recognizing that there is no uniform methodology regarding the allocation of firm-wide or complex-wide expenses within the asset management industry for determining profitability for this purpose and that the use of different reasonable methodologies can give rise to different profit and loss results, the Board, in the past, requested from Management examples of profitability calculated by different methods and noted that the estimated profitability levels were still reasonable when calculated by these other methods. The Board further noted Management’s representation that its estimate of profitability is derived using methodology that is consistent with the methodology used to assess and/or report measures of profitability elsewhere at the firm. In addition, the Board recognized that Management’s calculations regarding its costs may not reflect all risks, including regulatory, legal, operational, cybersecurity, reputational, and, where appropriate, entrepreneurial risks,
associated with offering and managing a mutual fund in the current regulatory and market environment. The Board also considered any fall-out (i.e., indirect) benefits likely to accrue to Management or its affiliates from their relationship with each Fund, such as research it may receive from broker-dealers executing the Funds’ portfolio transactions on an agency basis. The Board was aware that an affiliate of Management owns a passive interest in Green Court and inquired about the extent to which this contributed to Management's profitability with respect to Greater China Fund. The Board recognized that Management and its affiliates should be entitled to earn a reasonable level of profits for services they provide to each Fund and, based on its review, concluded that Management’s reported level of estimated profitability, if any, on each Fund, and Green Court’s level of estimated profitability on Greater China Fund, were reasonable.
Information Regarding Services to Other Clients
The Board also considered whether there were other funds or separate accounts that were advised or sub-advised by Management or its affiliates with investment objectives, policies, and strategies that were similar to those of any of the Funds. In the cases where such funds or separate accounts exist, the Board compared the fees charged to the respective Fund to the fees charged to such comparable funds and/or separate accounts. The Board considered the appropriateness and reasonableness of any differences between the fees charged to a Fund and such comparable funds and/or separate accounts, and determined that differences in fees and fee structures were consistent with the differences in the management and other services provided. The Board explored with Management its assertion that although, generally, the rates of fees paid by such accounts, except other Neuberger Berman mutual funds, were lower than the fee rates paid by the corresponding Funds, the differences reflected Management’s greater level of responsibilities and significantly broader scope of services to the Funds, the more extensive regulatory obligations and risks associated with managing the Funds, and other financial considerations with respect to creation and sponsorship of the Funds.
Economies of Scale
The Board also evaluated apparent or anticipated economies of scale in relation to the services Management provides to each Fund. The Board considered whether each Fund’s fee structure provides for a reduction of payments resulting from the use of breakpoints, the size of any breakpoints in each Fund’s advisory fees, and whether any such breakpoints are set at appropriate asset levels. The Board also compared the breakpoint structure to that of the Expense Group. In addition, the Board considered the expense limitation and/or fee waiver arrangements that reduce many Funds’ expenses at some or all asset levels, which can have an effect similar to breakpoints in sharing economies of scale with shareholders and provide protection from an increase in expenses if a Fund’s assets decline. The Trustees took into account that certain Funds do not have breakpoints in their fees. As to those Funds whose advisory fees do not have breakpoints, the Board discussed with Management the reasons why the Fund’s particular investment program was less likely than others to produce economies of scale. In addition, for Funds that do not have breakpoints, the Board considered that setting competitive fee rates and pricing a Fund to scale before it has actually experienced an increase in assets are other means of sharing potential economies of scale with shareholders. The Board also considered that Management has provided, at no added cost to the Funds, certain additional services, including but not limited to, services required by new regulations or regulatory interpretations, services impelled by changes in the securities markets or the business landscape, and/or services requested by the Board. The Board considered that this is a way of sharing economies of scale with the Funds and their shareholders.
Fund-by-Fund Analysis
With regard to the investment performance of each Fund and the fees charged to each Fund, the Board considered the following information. The Performance Universes referenced in this section are those identified by the consulting firm, as discussed above, and the risk/return ratios referenced are the Sharpe ratios provided by the consulting firm. With respect to performance quintile rankings for a Fund compared to its Performance Universe,
the first quintile represents the highest (best) performance and the fifth quintile represents the lowest performance. With respect to the quintile rankings for fees and total expenses (net of waivers or other adjustments, if any) for a Fund compared to its Expense Group, the first quintile represents the lowest (best) fees and/or total expenses and the fifth quintile represents the highest fees and/or total expenses. Where a Fund has more than one class of shares outstanding, information for a single class has been provided as identified below. The Board reviewed the expense structures of all the other classes of shares of the Funds, some of which have higher fees and expenses that reflect their separate distribution and servicing arrangements and the differing needs of different investors. As a proxy for the class expense structure, the Board reviewed the expenses of each class for at least one Fund in the Trust in comparison to Expense Groups for those classes. The Board noted the effect of higher expenses on the performance of the other classes of shares.
• Neuberger Berman Dividend Growth Fund (Institutional Class)—The Board considered that, based on performance data for the periods ended December 31, 2021: (1) as compared to its benchmark, the Fund’s performance was lower for the 1-, 3- and 5-year periods and; (2) as compared to its Performance Universe, the Fund’s performance was in the fourth quintile for the 1-year period, the first quintile for the 3-year period, and the second quintile for the 5-year period. The Fund was launched in 2015 and therefore does not have 10-year performance for the period. The Board considered that, as compared to its Expense Group, the Fund’s contractual management fee, the actual management fee net of fees waived by Management, and total expenses each ranked in the first quintile. The Board also took into account that the Fund showed a risk/return ratio that was better than the median of its Performance Universe for the 3- and 5-year periods, meaning that per unit of risk taken versus a presumed risk-free investment, the Fund achieved a higher level of return than the median of its Performance Universe for those same periods. The Board noted the Fund’s outperformance versus its benchmark during the 7-month period ending July 31, 2022. The Board further noted the Fund’s ranking was in the second quintile of its Morningstar peer category for the 7-month period ending July 31, 2022.
• Neuberger Berman Emerging Markets Equity Fund (Institutional Class)—The Board considered that, based on performance data for the periods ended December 31, 2021: (1) as compared to its benchmark, the Fund’s performance was lower for the 1-, 3-, and 5-year periods, and higher for the 10-year period; and (2) as compared to its Performance Universe, the Fund’s performance was in the fourth quintile for the 1- and 5-year periods, the fifth quintile for the 3-year period, and the third quintile for the 10-year period. The Board considered that, as compared to its Expense Group, the Fund’s contractual management fee ranked in the fourth quintile, and the actual management fee and total expenses each ranked in the fifth quintile. The Board noted the Fund’s ranking was in the third quintile of its Lipper peer category for the 7-month period ending July 31, 2022. In addition, the Board discussed with Management the additional portfolio management resource that was being added to the Fund in October 2022 and the steps it was taking with respect to the Fund’s performance.
• Neuberger Berman Equity Income Fund (Institutional Class)—The Board considered that, based on performance data for the periods ended December 31, 2021: (1) as compared to its prior benchmark, the Fund’s performance was lower for the 1-, 3-, 5-, and 10-year periods; and (2) as compared to its Performance Universe, the Fund’s performance was in the fifth quintile for the 1- and 10-year periods and the fourth quintile for the 3- and 5-year periods. The Board considered that, as compared to its Expense Group, the Fund’s contractual management fee, the actual management fee, and total expenses each ranked in the second quintile. The Board noted the Fund’s outperformance versus its prior benchmark during the 7-month period ending July 31, 2022. The Board further noted the Fund’s ranking was in the second quintile of both its Lipper and Morningstar peer categories for the 7-month period ending July 31, 2022. In addition, the Board noted that the Fund changed its benchmark index in April 2022 to an index with characteristics that are more representative of the Fund’s investment strategy.
• Neuberger Berman Focus Fund (Investor Class)—The Board considered that, based on performance data for the periods ended December 31, 2021: (1) as compared to its benchmark, the Fund’s performance
was higher for the 1-, 3-, 5-, and 10-year periods; and (2) as compared to its Performance Universe, the Fund’s performance was in the first quintile for the 1-year period, the third quintile for the 3- and 10-year periods, and the fourth quintile for the 5-year period. The Board considered that, as compared to its Expense Group, the Fund’s contractual management fee and the actual management fee each ranked in the second quintile and total expenses, inclusive of any 12b-1/non-12b-1 service fees, ranked in the first quintile. In addition, the Board met with the portfolio management team in December 2021 to discuss the Fund’s performance.
• Neuberger Berman Genesis Fund (Institutional Class)—The Board considered fee and performance data from two sets of peer groups: one with only small-cap growth funds and one with only small-cap core funds. The Board considered that, based on performance data for the periods ended December 31, 2021: (1) as compared to its benchmark, the Fund’s performance was higher for the 1-, 3-, 5-, and 10-year periods; (2) as compared to its small-cap growth Performance Universe, the Fund’s performance was in the second quintile for the 1-year period, the third quintile for the 3-year period, and the fourth quintile for the 5- and 10-year periods; and (3) as compared to its small-cap core Performance Universe, the Fund’s performance was in the fifth quintile for the 1-year period and the first quintile for the 3-, 5-, and 10-year periods. The Board considered that, as compared to its small-cap growth Expense Group, the Fund’s contractual management fee and actual management fee each ranked in the third quintile and total expenses ranked in the second quintile. The Board considered that, as compared to its small-cap core Expense Group, the Fund’s contractual management fee and actual management fee each ranked in the fourth quintile and total expenses ranked in the second quintile. The Board also took into account that the Fund showed a risk/return ratio that was better than the median of both its small-cap growth and small-cap core Performance Universes for the 3- and 5-year periods, meaning that per unit of risk taken versus a presumed risk-free investment, the Fund achieved a higher level of return than the median of those Performance Universes for those same periods. The Board noted the Fund’s outperformance versus its benchmark during the 7-month period and certain other periods ending July 31, 2022. The Board further noted the Fund’s ranking was in the first quintile of both its Lipper and Morningstar small-cap growth peer categories for the 7-month period ending July 31, 2022. In determining to renew the Agreement, the Board took into account information regarding the effect that the composition of the Fund’s peer groups had on the Fund’s performance relative to its peers, noting Management’s belief that the small-cap core peer group provides a more appropriate comparison to the Fund. In addition, the Board met with the portfolio management team in March 2022 to discuss the Fund’s performance.
• Neuberger Berman Global Real Estate Fund (Institutional Class)—The Board considered that, based on performance data for the periods ended December 31, 2021: (1) as compared to its benchmark, the Fund’s performance was higher for the 1-, 3-, and 5-year periods; and (2) as compared to its Performance Universe, the Fund’s performance was in the second quintile for the 1-, 3-, and 5-year periods. The Fund was launched in 2014 and therefore does not have 10-year performance. The Board considered that, as compared to its Expense Group, the Fund’s contractual management fee ranked in the fifth quintile, the actual management fee net of fees waived by Management ranked in the first quintile, and total expenses ranked in the third quintile. In addition, the Board met with the portfolio management team in March 2022 to discuss the Fund’s performance.
• Neuberger Berman Greater China Equity Fund (Institutional Class)—The Board considered that, based on performance data for the periods ended December 31, 2021: (1) as compared to its benchmark, the Fund’s performance was higher for the 1-, 3-, and 5-year periods; and (2) as compared to its Performance Universe, the Fund’s performance was in the second quintile for the 1- and 5-year periods and the third quintile for the 3-year period. The Fund was launched in 2013 and therefore does not have 10-year performance. The Board considered that, as compared to its Expense Group, the Fund’s contractual management fee and total expenses each ranked in the fifth quintile and the actual management fee net of fees waived by Management ranked in the fourth quintile. The Board discussed with Management the
impact of the Fund’s small size on its expenses and considered Management’s representations regarding ways to manage such expenses. The Board also took into account that the Fund showed a risk/return ratio that was better than the median of its Performance Universe for the 3- and 5-year periods, meaning that per unit of risk taken versus a presumed risk-free investment, the Fund achieved a higher level of return than the median of its Performance Universe for those same periods. The Board noted the Fund’s ranking was in the second quintile of both its Lipper and Morningstar peer categories for the 7-month period ending July 31, 2022. In addition, the Board met with the portfolio management team in June 2022 to discuss the Fund’s performance.
• Neuberger Berman International Equity Fund (Institutional Class)—The Board considered that, based on performance data for the periods ended December 31, 2021: (1) as compared to its benchmark, the Fund’s performance was higher for the 1-, 3-, 5-, and 10-year periods; and (2) as compared to its Performance Universe, the Fund’s performance was in the first quintile for the 1-year period and the third quintile for the 3-, 5-, and 10-year periods. The Board considered that, as compared to its Expense Group, the Fund’s contractual management fee and the actual management fee net of fees waived by Management each ranked in the fourth quintile, and total expenses ranked in the second quintile. The Board also noted the Fund’s ranking was in the second quintile of its Morningstar peer category and in the third quintile of its Lipper peer category for the 7-month period ending July 31, 2022. In addition, the Board met with the portfolio management team in October 2021 to discuss the Fund’s performance.
• Neuberger Berman International Select Fund (Institutional Class)—The Board considered that, based on performance data for the periods ended December 31, 2021: (1) as compared to its benchmark, the Fund’s performance was higher for the 1-, 3-, 5-, and 10-year periods; and (2) as compared to its Performance Universe, the Fund’s performance was in the first quintile for the 1-year period and the third quintile for the 3-, 5-, and 10-year periods. The Board considered that, as compared to its Expense Group, the Fund’s contractual management fee, the actual management fee net of fees waived by Management, and total expenses each ranked in the first quintile. In addition, the Board met with the portfolio management team in October 2021 to discuss the Fund’s performance.
• Neuberger Berman International Small Cap Fund (Institutional Class)—The Board considered that, based on performance data for the periods ended December 31, 2021: (1) as compared to its benchmark, the Fund’s performance was higher for the 1-, 3-, and 5-year periods; and (2) as compared to its Performance Universe, the Fund’s performance was in the first quintile for the 1- and 3-year periods and the second quintile for the 5-year period. The Fund was launched in 2016 and therefore does not have 10-year performance. The Board considered that, as compared to its Expense Group, the Fund’s contractual management fee ranked in the second quintile and the actual management fee net of fees waived by Management and total expenses each ranked in the first quintile. In addition, the Board met with the portfolio management team in October 2021 to discuss the Fund’s performance.
• Neuberger Berman Intrinsic Value Fund (Institutional Class)—The Board considered that, based on performance data for the periods ended December 31, 2021: (1) as compared to its benchmark, the Fund’s performance was lower for the 1-year period and higher for the 3-, 5-, and 10 year periods; and (2) as compared to its Performance Universe, the Fund’s performance was in the third quintile for the 1-year period and the first quintile for the 3-, 5-, and 10-year periods. The Board considered that, as compared to its Expense Group, the Fund’s contractual management fee ranked in the fourth quintile and the actual management fee net of fees waived by Management and total expenses each ranked in the fifth quintile. The Board also took into account that the Fund showed a risk/return ratio that was better than the median of its Performance Universe for the 3- and 5-year periods, meaning that per unit of risk taken versus a presumed risk-free investment, the Fund achieved a higher level of return than the median of its Performance Universe for those same periods. In addition, the Board met with a member of the portfolio management team in October 2021 to discuss the Fund’s performance.
• Neuberger Berman Large Cap Growth Fund (Formerly Neuberger Berman Guardian Fund) (Institutional Class)—The Board considered that, based on performance data for the periods ended December 31, 2021: (1) as compared to its benchmark, the Fund’s performance was lower for the 1-year period and higher for the 3-, 5-, and 10-year periods; and (2) as compared to its Performance Universe, the Fund’s performance was in the first quintile for the 1-year period, the second quintile for the 3-year period, and the third quintile for the 5- and 10-year periods. The Board considered that, as compared to its Expense Group, the Fund’s contractual management fee and the actual management fee each ranked in the second quintile and total expenses ranked in the first quintile. In addition, the Board met with members of the portfolio management team in June 2022 to discuss the Fund’s performance.
• Neuberger Berman Large Cap Value Fund (Institutional Class)—The Board considered that, based on performance data for the periods ended December 31, 2021: (1) as compared to its benchmark, the Fund’s performance was higher for the 1-, 3-, 5-, and 10-year periods; and (2) as compared to its Performance Universe, the Fund’s performance was in the first quintile for the 1-, 3-, 5-, and 10-year periods. The Board considered that, as compared to its Expense Group, the Fund’s contractual management fee ranked in the fourth quintile, the actual management fee ranked in the third quintile, and total expenses ranked in the second quintile. The Board also took into account that the Fund showed a risk/return ratio that was better than the median of its Performance Universe for the 3- and 5-year periods, meaning that per unit of risk taken versus a presumed risk-free investment, the Fund achieved a higher level of return than the median of its Performance Universe for those same periods. The Board also noted the Fund’s outperformance versus its benchmark during the 7-month period and certain other periods ending July 31, 2022. In addition, the Board noted the Fund’s ranking was in the first quintile of its Morningstar peer category and in the second quintile of its Lipper peer category for the 7-month period ending July 31, 2022. In addition, the Board met with the portfolio management team in December 2021 to discuss the Fund’s performance.
• Neuberger Berman Mid Cap Growth Fund (Institutional Class)—The Board considered that, based on performance data for the periods ended December 31, 2021: (1) as compared to its benchmark, the Fund’s performance was higher for the 1-, 3-, and 5-year periods and lower for the 10-year period; and (2) as compared to its Performance Universe, the Fund’s performance was in the third quintile for the 1-, 3-, and 5-year periods and the fourth quintile for the 10-year period. The Board considered that, as compared to its Expense Group, the Fund’s contractual management fee and the actual management fee each ranked in the first quintile and total expenses ranked in the second quintile. The Board also noted the Fund’s outperformance versus its benchmark during the 7-month period and certain other periods ending July 31, 2022. In addition, the Board noted the Fund’s ranking was in the second quintile of its Lipper peer category and in the third quintile of its Morningstar peer category for the 7-month period ending July 31, 2022. In addition, the Board met with members of the portfolio management team in October 2021 to discuss the Fund’s performance.
• Neuberger Berman Mid Cap Intrinsic Value Fund (Institutional Class)—The Board considered that, based on performance data for the periods ended December 31, 2021: (1) as compared to its benchmark, the Fund’s performance was higher for the 1-year period and lower for the 3-, 5-, and 10-year periods; and (2) as compared to its Performance Universe, the Fund’s performance was in the first quintile for the 1-year period, the fifth quintile for the 3- and 5-year periods, and the fourth quintile for the 10-year period. The Board considered that, as compared to its Expense Group, the Fund’s contractual management fee and total expenses each ranked in the second quintile and the actual management fee net of fees waived by Management ranked in the first quintile. In addition, the Board met with members of the portfolio management team in October 2021 to discuss the Fund’s performance.
• Neuberger Berman Multi-Cap Opportunities Fund (Institutional Class)—The Board considered that, based on performance data for the periods ended December 31, 2021: (1) as compared to its benchmark, the Fund’s performance was lower for the 1-, 3-, 5-, and 10-year periods; and (2) as compared to its Performance Universe, the Fund’s performance was in the second quintile for the 1- and 5-year periods, the
fourth quintile for the 3-year period, and the first quintile for the 10-year period. The Board considered that, as compared to its Expense Group, the Fund’s contractual management fee and total expenses each ranked in the third quintile and the actual management fee ranked in the fourth quintile.
• Neuberger Berman Real Estate Fund (Institutional Class)—The Board considered that, based on performance data for the periods ended December 31, 2021: (1) as compared to its benchmark, the Fund’s performance was higher for the 1-, 3-, and 5-year periods and lower for the 10-year period; and (2) as compared to its Performance Universe, the Fund’s performance was in the third quintile for the 1-year period and the first quintile for the 3-, 5- and 10-year periods. The Board considered that, as compared to its Expense Group, the Fund’s contractual management fee ranked in the fifth quintile, the actual management fee net of fees waived by Management ranked in the third quintile, and total expenses ranked in the second quintile. The Board also took into account that the Fund showed a risk/return ratio that was better than the median of its Performance Universe for the 3- and 5-year periods, meaning that per unit of risk taken versus a presumed risk-free investment, the Fund achieved a higher level of return than the median of its Performance Universe for those same periods. The Board also noted the Fund’s ranking was in the third quintile of its Lipper and Morningstar peer categories for the 7-month period ending July 31, 2022. In addition, the Board met with the portfolio management team in March 2022 to discuss the Fund’s performance.
• Neuberger Berman Small Cap Growth Fund (Institutional Class)—The Board considered that, based on performance data for the periods ended December 31, 2021: (1) as compared to its benchmark, the Fund’s performance was higher for the 1-, 3-, 5-, and 10-year periods; and (2) as compared to its Performance Universe, the Fund’s performance was in the fourth quintile for the 1-year period, the second quintile for the 3-year period, and the first quintile for the 5- and 10-year periods. The Board considered that, as compared to its Expense Group, the Fund’s contractual management fee ranked in the fifth quintile, the actual management fee net of fees waived by Management ranked in the third quintile, and total expenses ranked in the second quintile. In addition, the Board met with members of the portfolio management team in October 2021 to discuss the Fund’s performance.
• Neuberger Berman Sustainable Equity Fund (Institutional Class)—The Board considered that, based on performance data for the periods ended December 31, 2021: (1) as compared to its benchmark, the Fund’s performance was lower for the 1-, 3-, 5-, and 10-year periods; and (2) as compared to its Performance Universe, the Fund’s performance was in the fourth quintile for the 1-year period and the third quintile for the 3-, 5-, and 10-year periods. The Board considered that, as compared to its Expense Group, the Fund’s contractual management fee and total expenses each ranked in the third quintile and the actual management fee ranked in the fourth quintile. The Board also took into account that the Fund showed a risk/return ratio that was better than the median of its Performance Universe for the 3- and 5-year periods, meaning that per unit of risk taken versus a presumed risk-free investment, the Fund achieved a higher level of return than the median of its Performance Universe for those same periods. The Board also took into account that as of April 2022, management of the Fund is under a new portfolio manager and changes were made to the Fund’s investment strategy. In addition, the Board met with the new portfolio manager in June 2022 to discuss the Fund’s performance.
• Neuberger Berman U.S. Equity Impact Fund (Institutional Class)—The Board considered that the Fund had limited performance history as it was launched in March 2021 and also considered the market environment since inception. The Board considered that the Fund ranked in the fifth quintile of its Lipper and Morningstar peer categories, respectively, for the 7-month period and 1-year period ending July 31, 2022. The Board considered that, as compared to its Expense Group, the Fund’s contractual management fee and total expenses each ranked in the third quintile and the actual management fee net of fees waived by Management ranked in the first quintile.
Conclusions
In approving the continuation of the Agreements, the Board concluded that, in its business judgment, the terms of each Agreement are fair and reasonable to each Fund and that approval of the continuation of the Agreements is in the best interests of each Fund and its shareholders. In reaching this determination, the Board considered that Management, and Green Court with respect to Neuberger Berman Greater China Equity Fund, could be expected to continue to provide a high level of service to each Fund; that the performance of each Fund was satisfactory over time, or, in the case of a Fund that underperformed relative to its Expense Group or Performance Universe, that the Board retained confidence in Management’s and, with respect to Neuberger Berman Greater China Equity Fund, Green Court’s capabilities to manage the Fund; that each Fund’s fee structure appeared to the Board to be reasonable given the nature, extent, and quality of services provided; and that the benefits accruing to Management and its affiliates by virtue of their relationship with each Fund were reasonable in light of the costs of providing the investment advisory and other services and the benefits accruing to each Fund. The Board’s conclusions may be based in part on its consideration of materials prepared in connection with the approval or continuance of the Agreements in prior years and on the Board’s ongoing regular review of Fund performance and operations throughout the year, in addition to material prepared specifically for the most recent annual review of the Agreements.
Neuberger Berman Investment Advisers LLC
1290 Avenue of the Americas
New York, NY 10104-0002
Retail Services: 800.877.9700
Broker-Dealer and Institutional Services: 800.366.6264/888.556.9030
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 you can obtain by calling 877.628.2583. An investor should consider carefully a Fund’s investment objectives, risks and fees and expenses, which are described in its prospectus, before investing.
I0134 04/23
| (b) | Not applicable to the Registrant. |
Item 2. Code of Ethics.
The Board of Trustees (“Board”) of Neuberger Berman Equity Funds (“Registrant”) has 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”). During the period covered by this Form N-CSR, there were no substantive 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.
Item 3. Audit Committee Financial Expert.
Not applicable to semi-annual reports on Form N-CSR.
Item 4. Principal Accountant Fees and Services.
Not applicable to semi-annual reports on Form N-CSR.
Item 5. Audit Committee of Listed Registrants.
Not applicable to the Registrant.
Item 6. Investments.
| (a) | The complete schedule of investments for each series is disclosed in the Registrant’s semi-annual report, which is included in Item 1 of this Form N-CSR. |
| (b) | Not applicable to the Registrant. |
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 Act) as of a date within 90 days of the filing date of this report, the Chief Executive Officer and President and the 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 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 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. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable to the Registrant.
Item 13. Exhibits.
| (a)(3) | Not applicable to the Registrant. |
| (a)(4) | Not applicable to the Registrant. |
The certification furnished pursuant to Rule 30a-2(b) under the Act and Section 906 of the Sarbanes-Oxley Act will not be 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 certification 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 it 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/ Joseph V. Amato
| |
| | Joseph V. Amato | |
| | Chief Executive Officer and President | |
Date: May 4, 2023
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/ Joseph V. Amato
| |
| | Joseph V. Amato | |
| | Chief Executive Officer and President | |
Date: May 4, 2023
By:
| /s/ John M. McGovern | |
| | John M. McGovern | |
| | Treasurer and Principal Financial and Accounting Officer | |
