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For Professional Client Use Only
Neuberger Berman CLO Income Fund October 2018
For Professional Client Use Only
This Fund is classified as complex under MIFID II (Markets in Financial Instruments Directive) and therefore will not be suitable for all investors. Investors should
familiarise with the risks that are associated with the fund as disclosed within the fund prospectus.
This Fund can accept subscriptions and redemptions on a fortnightly basis, and does not offer daily dealing. Investors should familiarise themselves with the dealing
cycle and terms associated with subscriptions and redemptions as disclosed within the prospectus.
The dealing deadline for the Fund is six days in advance of the dealing date, therefore investors should familiarise themselves with the risks associated with market
movements in the intervening period between dealing cut-off and dealing.
The Fund may invest in instruments that have long settlement periods, such as primary issue Collateralised Loan Obligation (CLO) securities.
The Fund’s investments in CLOs will be frequently subordinate in right of payment to other securities sold by the applicable CLO and may not be readily
marketable. Depending upon the payment and default rates on the collateral of the CLO, the Fund may incur substantial losses on its investments. CLO securities are
generally illiquid and dealer marks and valuations provided may not represent prices where assets can actually be purchased or sold in the market from time to
time. Accordingly, the mark-to-market value of CLOs may be volatile and the value of the Interests could likewise be volatile.
Disclosures
2
FIRM OVERVIEW
For Professional Client Use Only
Employee-Owned Investment Manager
Partnering with clients to achieve their unique objectives
Long-term Outperformance2 Alignment of Interests
Portfolio managers invest alongside clients
Breadth of Independent Perspectives
601 investment professionals1 connected across public and
private markets, equity, fixed income and alternatives
Experienced and Stable Teams
25+ year average industry experience for lead PMs; 96%
annualized retention rate of senior investment professionals at MD
and SVP level since becoming an independent company in 2009
Innovative Investment Solutions
A track record of client partnerships and long-term performance
90% Institutional-oriented equity
Percentage of institutional-oriented AUM outperforming
benchmark since inception ended June 30, 2018
95% Institutional-oriented fixed income
Percentage of institutional-oriented AUM outperforming
benchmark since inception ended June 30, 2018
74%
Private equity
Percentage of NB Private Equity funds raised between
2005 – 2015 (since inception performance)
outperforming benchmark Net IRR
Deep Resources
Extensive fundamental research, access to management,
innovative ESG research, and sophisticated risk management
1. As of August 31, 2018. 2. Institutional-oriented equity and fixed income assets under management (“AUM”) includes the firm’s equity and fixed income institutional separate account (“ISA”), registered fund, and managed account/wrap (“MAG”) offerings and are based on the overall performance of each individual investment offering against its respective benchmark. High net worth/private asset management (“HNW”) AUM is excluded. If HNW AUM were included, the percentage of AUM outperforming the benchmark since inception period would have been 75% for equities and 84% for fixed income. Equity and Fixed Income AUM outperformance results are asset-weighted so individual offerings with the largest amount of assets under management have the largest impact on the results. Please see additional disclosures for important information regarding Private Equity methodology. All performance data for NB Private Equity funds, public and private indices data is as of December 31, 2017. Results are shown gross of fees. Individual offerings may have experienced negative performance during certain periods of time. See Additional Disclosures for additional information regarding the outperformance statistics shown (including 3-, 5- and 10-yr statistics for institutional-oriented equity and fixed income). Indexes are unmanaged and are not available for direct investment. Investing entails risks, including possible loss of principal. Past performance is no guarantee of future results.
4
For Professional Client Use Only
Employee Ownership Fosters Team Stability and Alignment with Clients
Industry-leading experience, retention and culture
1. Employee assets include current and former employees and their family members.
of clients’ assets managed by
lead PMs who have 20+ years
of industry experience
Manager Experience
Retention Levels For Senior Investment Professionals
Managing Directors
(includes retirements)
Managing Directors
(competitor departures only)
98%
98%
99%
91%
94%
100%
99%
100%
99%
100%
2013
2014
2015
2016
2017
93%
Alignment With Clients
invested by Neuberger Berman employees
alongside clients1 ~$3bn 100% independent,
employee-owned
Ownership Structure
deferred cash compensation directly linked to team
and firm strategies 100%
Our Culture
2013 2014 2015
2016 2017
5
For Professional Client Use Only
Investment Platform
Breadth of independent perspectives across asset classes
1. As of June 30, 2018. Firm assets under management (AUM) includes $103.3 billion in Equity assets, $132.2 billion in Fixed Income assets and $68.9 billion in Alternatives assets. Alternatives “AUM and Committed Capital” includes assets under management for non-Private Equity businesses and Committed Capital since inception for the Private Equity businesses. Committed Capital since inception reflects all contractual commitments, including those still in documentation, to fund investments, including those which have since been realized, advised by NB Alternatives Advisers LLC and its affiliates or predecessors (the oldest mandate of which was founded in 1981). 2. As of August 31, 2018.
EQUITY FIXED INCOME ALTERNATIVES
AUM $304bn1
Investment
Professionals2
$103bn
228
$132bn
176
Risk Parity
Global Tactical Asset Allocation
Global Relative & Absolute Return
Income Focused
Inflation Management
Liability Aware
$77bn AUM and Committed Capital
152
Quantitative Global
U.S.
Emerging Markets
Custom Beta
Risk Premia
Options
Global Macro
Commodities
Fundamental Global Investment Grade
Global Non-Investment Grade
Emerging Markets, Regional EM, China
Multi-Sector, Opportunistic
Municipals
Specialty Strategies
– CLO Mezzanine
– Currency
– Corporate Hybrids
Private Equity:
– Primaries
– Co-Investments
– Secondaries
– Specialty Strategies – Minority stakes in
alternative firms - Dyal
Alternative Credit:
– Private Credit
– Residential Loans
– Special Situations
Hedge Funds:
– Multi-Manager
– Equity Long/Short
– Credit Long/Short
– Event Driven
Quantitative Fundamental
MULTI-ASSET CLASS SOLUTIONS AND STRATEGIC PARTNERSHIPS
Integration of Environmental, Social and Governance Factors
Global, EAFE
U.S. Value, Core, Growth
Emerging Markets
Regional EM, China
Global Thematic, Disruptive Themes
Sustainable Equity
Income Strategies
– MLP
– REITs
6
For Professional Client Use Only
Fixed Income Organization
Supported by over 150 US and Global Money Managers, Research Analysts and Associates
As of July 31, 2018 Combined investment professionals of the firm and affiliated investment management entities. *As previously announced Andy will be retiring at the end of 2018 and will transition his portfolio management responsibilities to a group of senior portfolio managers across Global Investment Grade and the Multi-Sector Fixed Income Group. Given our team-based approach, each account will continue to be managed by portfolio managers that have a deep understanding of each portfolio and the client’s unique objectives. **As of May 25, 2018, it was announced that Martin Rotheram intends to depart the firm. Martin will work with the members of the investment team to ensure an orderly handover of his credit responsibilities over the next six months.
GLOBAL FIXED INCOME BRAD TANK
EMERGING MARKETS DEBT
ROB DRIJKONINGEN
GORKY URQUIETA
Hard Currency
Bart van der Made
Local Currency
Raoul Luttik
Corporates
Jennifer Gorgoll
Nish Popat
Research
Puay Yeong Goh
Vera Kartseva
Kaan Nazli
Asian Fixed Income
Prashant Singh
GLOBAL NON-INVESTMENT
GRADE
TOM O’REILLY
High Yield
Russ Covode
Dan Doyle
Patrick Flynn
Joseph Lind
Tom O’Reilly
Senior Floating Rate Loans /
Structured Credit
Stephen Casey
Joseph Lynch
Martin Rotheram**
Pim van Schie
Research
Chris Kocinski
Steve Ruh
European High Yield
Vivek Bommi
Martin Rotheram**
GLOBAL INVESTMENT
GRADE
DAVE BROWN
ANDREW JOHNSON*
Rates
Thanos Bardas
Anthony Woodside
Credit
Dave Brown
Julian Marks
Bob Summers
Securitized
Jason Smith
Tom Sontag
Currency
Ugo Lancioni
Research
Steve Flaherty
Dmitry Gasinsky
Core/Core Plus
Thanos Bardas
Dave Brown
Nate Kush
Tom Marthaler
MUNICIPALS
JAMES ISELIN
Cash/Short Duration
Kristian Lind
Intermediate
James Iselin
S. Blake Miller
High Income
James Iselin
S. Blake Miller
Eric Pelio
Research
James Lyman
ALTERNATIVES
Global Credit
Long / Short
Rick Dowdle
Norman Milner
Special Situations
Michael Holmberg
Brendan McDermott
Ravi Soni
Residential Loans
Terry Glomski
MULTI-SECTOR
SOLUTIONS
BRAD TANK
Global / US Opportunistic
Strategies
Thanos Bardas
Ashok Bhatia
Dave Brown
Andrew Johnson
Jon Jonsson
Tom Marthaler
Research
David Tang
Insurance Solutions
Jason Pratt
Inflation / Liability Aware
Thanos Bardas
Olumide Owolabi
Ronit Walny
China Fixed Income
Peter Ru
7
For Professional Client Use Only
Fixed Income Platform Overview
$132bn across a spectrum of investment styles
1. As of August 31, 2018. 2. Fixed Income assets under management excludes fixed income assets ($3 bn) managed by equity investment teams and includes alternative credit assets ($5 bn). 3. “Lead Portfolio Managers” are defined as those individuals who head a Fixed Income investment team. Percentages are rounded to the whole number. “Additional Investment Professionals” include Fixed Income research analysts, traders, product specialists, and team-dedicated economists/strategists.
• Consistency of leadership: 100% assets managed by lead PMs who have
20+ years of industry experience
• 176 investment professionals with sector specialization; 8 global locations1
• Best in class capabilities across global universe, public and private markets
Breadth and depth of capabilities
• Investment teams share insights and information across a global platform
• Multi-site platform ensures local perspective incorporated into portfolios
• Rigorous risk management framework includes independent oversight
Global integrated platform
• Proprietary tools drive portfolio construction; examples include State Space
analysis, Credit Best Practices (proprietary credit analysis framework), Torpedo
Monitoring (credit deterioration risk management) and Everest (identify, select
and monitor portfolio positions)
Fundamental research driven approach
Global Investment
Grade $51
Global Non-Investment
Grade Credit $40
Emerging Markets Debt
$18
Multi-Sector & Opportunistic
$11
Municipals $11
Alternative Credit
$5
AUM ($bn)
Broad Style Range2
Highly Experienced Managers3
100%
60%
20 Years
Industry Experience
Tenure at Neuberger Berman
Supported by Additional
Investment Professionals
with an average of 13
years industry experience
and 7 years at the firm 10 years tenure at
Neuberger Berman
by AUM
86%
Percentage of client assets under management by experienced Lead Portfolio Manager
8
For Professional Client Use Only
Global Non-Investment Grade Credit Platform
___________________________ 1. This material is intended as a broad overview of the portfolio managers’ style, philosophy and investment process and is subject to change. Typical credit quality ranges are provided for reference only and do not reflect any actual credit quality rating
associated with any product or investment. 2. Not all investment vehicles are available to all investors or in all jurisdictions. 3. As of June 30, 2018. Includes Alternative capabilities and Non-Investment Grade assets managed within Opportunistic / Unconstrained Strategies. For illustrative purposes only provided for one on one presentation. The observations set forth including portfolio characteristics are neither investment advice nor a legal opinion. They are presented only to provide information on our view of the referenced investment strategies.
Disciplined credit process driven by what we believe to be one of the largest dedicated global credit
research teams
U.S.
HIGH YIELD STRATEGY
QUALITY BIAS
HIGH YIELD STRATEGY
SHORT DURATION
HIGH YIELD STRATEGY
EUROPEAN
HIGH YIELD STRATEGY
GLOBAL
HIGH YIELD STRATEGY
SENIOR FLOATING
RATE LOANS / STRUCTURED
CREDIT STRATEGY
Portfolio Managers
Tom O’Reilly
Russ Covode
Dan Doyle
Patrick Flynn
Joe Lind
Tom O’Reilly
Russ Covode
Dan Doyle
Patrick Flynn
Joe Lind
Tom O’Reilly
Russ Covode
Dan Doyle
Patrick Flynn
Joe Lind
Vivek Bommi
Martin Rotheram
Tom O’Reilly
Patrick Flynn
Vivek Bommi
Jennifer Gorgoll
Nish Popat
Joe Lynch
Stephen Casey
Martin Rotheram
Pim Van Schie
Investments US $ high-yield corporate
bonds
US $ high-yield corporate
bonds
US $ shorter term high-
yield corporate bonds
European currency high-
yield corporate bonds
US $ and European currency
high-yield corporate bonds;
emerging market bonds
US $ and European currency
floating rate senior secured loans,
CLO debt
Credit focus1
Credit Quality Range
Opportunistic
B to BB
BBB, CCC, senior floating
rate loans
BB
BBB, senior floating
rate loans
BB
BBB, CCC, senior
floating rate loans
B to BB
BBB, CCC, senior floating
rate loans
B to BB
BBB, CCC, senior
floating rate loans
B to BB
BBB, CCC, secured bonds
Typical Maturity 8 to 10 yrs 8 to 10 yrs < 5 yrs 8 to 10 yrs 8 to 10 yrs 5 to 7 yrs
Typical Duration 4 yrs 4 yrs < 2 yrs 4 yrs 4 yrs Floating Rate
Other Vehicles2
UCITS Fund
40 Act Fund
Commingled Fund
CIT
–
–
–
–
–
–
–
–
UCITS Fund
40 Act Fund
–
–
–
–
UCITS Fund
–
–
–
–
–
UCITS Fund
–
–
–
–
–
UCITS Fund
QIF (Dublin-based)
LSE Listed Fund
40 Act Fund
Commingled Fund
NB Managed CLOs
Third Party CLOs
AUM ($MM)3 $15,794 $1,661 $5,691 $400 $2,498 $16,372
For Professional Client Use Only 9
For Professional Client Use Only
EUROPEAN HIGH YIELD
Name Experience
Vivek Bommi, CFA* 20 years
Martin Rotheram* 18 years
Approximately $400 million AUM
Global Non-Investment Grade Credit Team
Experienced team of over 40+ investment professionals managing approximately $42 billion
_______________________ Employee data as of August 31, 2018. AUM data as of June 30, 2018. AUM Represents assets under management of Neuberger Berman Investment Advisers LLC and Neuberger Berman Loan Advisors LLC. Includes Alternative capabilities and Non-Investment Grade assets managed within Opportunistic / Unconstrained Strategies. Years of experience are shown in parentheses for research, client PM, traders, and risk management. Investment professionals with an asterisk (*) by their name sit on the Credit Committee.
Consumer Telecom / Media / Tech
Ian Bates, CFA (13 years)
Robert Gephardt, CFA (13 years)
Alex Hankin, CFA (5 years)
Steven Ruh, CFA* (13 years)
Energy / Utilities Portfolio Analysts
Cyclicals (inc. Financials)
Brian Bunker, CFA (8 years)
Adam Howaniec (5 years)
Christopher Kocinski, CFA (13 years)
Brandon Mulroe, CFA (11 years)
Henry Reukauf (29 years)
Martin Rotheram (18 years)
David DeCoste, CFA (18 years)
Neil Frank, CFA (14 years)
Brian Giffney (19 years)
Hardik Makkar, CFA (8 years)
Christopher Miller (21 years)
Allison Norman, CFA (6 years)
Rachel Young (11 years)
Jared Feeney, CFA (10 years)
Laura Homsy (11 years)
Jonathan Levine (18 years)
Mark Menapace, CFA (18 years)
Rick Veitch (2 years)
Wen Yao, CFA (8 years)
Colin Donlan (23 years)
Tyler Gile, CFA (6 years)
Michael Keegan, CFA (7 years)
Ophelia Ng (2 years)
Paul Raskin, CFA (5 years)
TOM O’REILLY, CFA* Global Head of Non-Investment Grade Credit
SENIOR FLOATING RATE LOANS /
STRUCTURED CREDIT
Name Experience
Stephen Casey, CFA* 23 years
Joe Lynch* 23 years
Martin Rotheram* 18 years
Pim van Schie 16 years
Approximately $16.4 billion AUM
U.S. HIGH YIELD
Name Experience
Tom O’Reilly, CFA* 30 years
Russ Covode* 31 years
Dan Doyle, CFA* 34 years
Patrick Flynn, CFA* 27 years
Joe Lind, CFA* 19 years
Approximately $23.1 billion AUM
Christopher Kocinski, CFA* (13 years) & Steven Ruh, CFA* (13 years) Co-Directors of Research
Client PM, Traders, and Risk
Management
Ravi Chintapalli, CFA (15 years)
Alex Gitnik, PhD (21 years)
Adam Grotzinger, CFA (15 years)
John Abendroth, CFA (27 years)
John Lingbeck (16 years)
Quinn Murphy (3 years)
Bill O’Connor, CFA (21 years)
John Sun, CFA (24 years)
10
CLO MEZZANINE DEBT OPPORTUNITY
For Professional Client Use Only
Investment Thesis For CLO Mezzanine Debt
CLO Debt can offer economic and fundamental advantages over other asset classes
_______________________
Historical trends do not imply, forecast, or guarantee future results. Please see the Risk Considerations section of this presentation. 1. Source: Bloomberg, JP Morgan, as of 9/30/2018. Data shown represents CLO yield to maturity, loan yield to maturity, bond yield to worst. Benchmarks used were the BAML Corporate Bond Indices and JP Morgan CLO
Index. You cannot invest directly in an index. Excludes defaulted issuers.
Why CLO Debt?
• Yield - CLO debt can provide attractive risk-adjusted
yield relative to comparably rated corporates1
• Floating Rate - CLO debt is generally indexed to 3m
LIBOR
• Credit Quality - Underlying loan portfolio contains at
least 90-95% first-lien senior secured loans
• Diversification - CLOs typically contain 150-200 loans
from different issuers across a diversified set of industries
• Structural Protection - Significant credit enhancement
against losses in the underlying loan portfolios
• Rating Stability - Very limited downgrade risk
CLO Debt Can Provide Attractive Yields1
4.2% 4.2% 3.4% 3.5%
8.8%
5.2% 4.8%
5.9%
4.4% 4.1%
0%
2%
4%
6%
8%
10%
CLO Bonds Loans CLO Bonds Loans
BB rated BBB rated
Credit Loss
Assuming 50% and 70% recovery on bonds and loans, respectively
12
For Professional Client Use Only
Market Sizes Of Non-Investment Grade Credit Sectors
US CLO market size is approximately half of the loan market
_______________________
Please see the risks of investing in CLOs in the Disclosures section of this presentation. For illustrative purposes only. 1. Source: Bloomberg, S&P Global Market Intelligence, Neuberger Berman as of 9/28/2018. Market size is the face value of the ICE BofAML US High Yield Index, S&P/LSTA Leverage Loans Index, and outstanding CLO
securities collateralized by broadly-syndicated loans.
Common Stock
Preferred Stock
High Yield Bond
Senior Secured Loan
Highest
Lowest
Pri
ori
ty o
f P
aym
ent
Sample Issuer Capital Structure US CLO market size1
US High Yield
$1.25 trillion
US Senior Secured Loans
$1.1 trillion
US CLO
$544 billion
13
For Professional Client Use Only
How Does A CLO Work?
CLOs attempt to capture the excess spread between the coupon on the assets and the
cost of debt for the benefit of the CLO equity investors
_______________________
Please see the risks of investing in CLOs in the Disclosures section of this presentation. For illustrative purposes only.
CLO Balance Sheet
Liabilities:
CLO Senior &
Mezzanine Debt
Tranches
Residual:
CLO Equity
Class A Notes (AAA)
Class B Notes (AA)
Class C Notes (A)
Class D Notes (BBB)
Class E Notes (BB)
Class F Notes (B)
CLO debt tranches:
• Generally pay a floating
rate coupon
• Collateralized by the Senior Floating Rate
Loan portfolio
• Benefit from structural protections
CLO equity:
• Receives residual cashflows from the
Senior Floating Rate Loan portfolio
• Obtains non-mark-to-market term financing
Assets:
Loan Portfolio
14
For Professional Client Use Only
Liabilities Assets
Assets:
Loan Portfolio
Illustrative Coupon
L+3.30%
CLO Structural Protections: Credit Enhancement
CLO debt tranches benefit from significant structural credit enhancement
Losses absorbed in
reverse order of
Seniority
Interest + Principal
(in order of Seniority)
Thickness
Par
Subordination
Breakeven Asset
Loss1 Typical Coupon
65% 35% 54% L+115
12% 23% 40% L+165
5% 18% 32% L+220
5% 13% 25% L+300
5% 8% 20% L+575
10% 0% N/A N/A
_______________________
Capital structure and indicative portfolio are presented for illustrative purposes only and may not represent the final capital structure and portfolio of any particular CLO. Please see the risks of investing in CLOs in the Disclosures section of this presentation. 1. Represents total cumulative portfolio asset losses to reach a 0% yield. Assumes 0% loan prepayment rate, 30% severity on defaults with immediate recoveries. Assumes reinvestment into 6-year bullets at par price and
reinvestment spread 10bps lower than initial portfolio spread. Assumes no reinvestment post Reinvestment Period. Uses forward LIBOR curve to compute yield.
CLO A Notes (AAA)
CLO B Notes (AA)
CLO A Notes (A)
CLO D Notes (BBB)
CLO E Notes (BB)
Subordinated Notes
15
For Professional Client Use Only
Structural And Historical Performance Demonstrates Resiliency
CLO mezzanine debt may offer strong structural protections relative to corporate debt
Orig. Rating Tranches Defaulted
Tranches
Cumulative
Default Rate
Cumulative
Loss Rate
AAA 3,108 0 0.00% 0.00%
AA 1,829 1 0.05% 0.00%
A 1,820 5 0.27% 0.01%
BBB 1,653 9 0.54% 0.02%
BB 1,346 20 1.49% 0.06%
B 274 3 1.09% 0.05%
Total 10,030 38 0.38% 0.02%
_______________________
Historical trends do not imply, forecast, or guarantee future results. Please see the Risk Considerations section of this presentation.
1. CLO BB yield to maturity assumes 75% recovery rate on defaulted collateral with immediate recoveries Assumes no reinvestment post Reinvestment Period. Uses forward LIBOR curve to compute yield. US High Yield reflects yield to worst, assuming a 50% recovery rate.
2. Source: S&P Global Ratings. Includes CLO classes rated by S&P from 1994-2018.
Significant Credit Enhancement
• CLO debt is typically issued with significant credit enhancement to
absorb any credit losses
• In addition, CLO structures contain de-levering mechanisms in case
credit losses exceed certain hurdles
Strong Historical Credit Performance
• Out of the 10,000+ CLO debt tranches rated by S&P over two-
decades – only 38 tranches have defaulted.2
• 25+ year cumulative loss rate of 0.38%2
Annual, constant default rate
CLO BB YTM1
US BB High Yield1
-10%
-5%
0%
5%
10%
1% 2% 4% 5% 7% 8% 10% 11% 13%
CLO Structural Protections
16
For Professional Client Use Only
CLO Market Overview
$500bn+ of US CLOs outstanding – large and diversified investor base
_______________________ Source: S&P LCD and Citi Research, September 2018. Historical trends do not imply, forecast, or guarantee future results. Please see the Risk Considerations section of this presentation.
CLO AAA INVESTOR BASE CLO MEZZ INVESTOR BASE CLO EQUITY INVESTOR BASE
0%
20%
40%
60%
80%
100%
2012 2013 2014 2015 2016 2017
0%
20%
40%
60%
80%
100%
2012 2013 2014 2015 2016 2017
0%
20%
40%
60%
80%
100%
2012 2013 2014 2015 2016 2017
Family Office
Permanent Capital
Pension
Hedge Fund
Bank
Asset Manager
Insurance
US Annual CLO Issuance ($bn)
$0
$30
$60
$90
$120
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018YTD
US CLO Market Highlights
Outstanding US CLOs ~$541bn
# of Active CLO Managers ~100
Typical CLO Size $500m
17
For Professional Client Use Only
CLO Risk / Return Profile
CLO historical returns have been attractive relative to volatility
_______________________ Source: Bloomberg, Bank of America, JP Morgan, S&P Leverage Loan and Commentary. Five-year Risk/Return data for the 5 years ended September 30, 2018. Yield data as of 9/30/2018. Benchmarks are BAML High Yield Index, S&P/LSTA Leveraged Loan Index, BAML 0-5 year Constrained High Yield Index, J.P. Morgan CLO AAA through BB Indices. Historical trends do not imply, forecast, or guarantee future results. Please see the Risk Considerations section of this presentation.
Index
Yield
CLO AAA 4.1% 2.0%
CLO AA 4.6% 2.6%
CLO A 5.0% 3.9%
CLO BBB 5.9% 5.4%
CLO BB 8.8% 8.3%
CLO B 10.8% 5.5%
CLO Equity 12-14% N/A
5yr Avg
Annual TR
0%
2%
4%
6%
8%
10%
0% 2% 4% 6% 8% 10% 12% 14%
% Standard Deviation / Risk
CLO AAA
CLO AA
CLO BBB Short Duration High Yield
Senior Floating
Rate Loans
US High Yield
CLO A
CLO BB
Five Year Risk/Return Profile % Average Annual Benchmark Total Return CLO Capital Structure
18
For Professional Client Use Only
Historical CLO Debt Spreads
CLO BBs off post-crisis tights, and basis to CLO BBBs remains elevated
100 bps
300 bps
500 bps
700 bps
900 bps
1100 bps
1300 bps
Sep 2013 Sep 2014 Sep 2015 Sep 2016 Sep 2017 Sep 2018
Primary Secondary
Primary Secondary CLO BBB
CLO BB
150 bps
200 bps
250 bps
300 bps
350 bps
400 bps
450 bps
Sep 2013 Sep 2014 Sep 2015 Sep 2016 Sep 2017 Sep 2018
CLO BB/BBB Basis Primary
CLO BB/BBB Basis Secondary
CLO BBB and CLO BB CLO BB / CLO BBB Basis
_______________________ Source: Wells Fargo Securities, September 2018 Historical trends do not imply, forecast, or guarantee future results. Please see the Disclosures and Risk Considerations at the end of this presentation.
19
For Professional Client Use Only
150 bps
350 bps
550 bps
750 bps
950 bps
1150 bps
Sep 2013 Sep 2014 Sep 2015 Sep 2016 Sep 2017 Sep 2018
CLO Secondary BB
CLO Secondary BBB
US High Yield BB OAS
CMBS 2.0 BBB Swap Spread
Cross Asset Class Spread Comparison
CLO BB relative value to HY has remained consistent, widening in third quarter
-200 bps
0 bps
200 bps
400 bps
600 bps
800 bps
Sep 2013 Sep 2014 Sep 2015 Sep 2016 Sep 2017 Sep 2018
CLO BB DM - US HY BB OAS
CLO BBB DM - CMBS BBB Spread
Comparison to High Yield and CMBS Non-IG Spread Basis Comparison
_______________________ Source: Wells Fargo Securities, September 2018 Historical trends do not imply, forecast, or guarantee future results. Please see the Disclosures and Risk Considerations at the end of this presentation.
20
For Professional Client Use Only
Year-to-Date Detailed Comparison To High Yield
High yield prices pressured by rising rates as CLOs experienced market technical
related spread widening
Price Comparison to High Yield Spread Basis Comparison to High Yield
_______________________ Source: Wells Fargo Securities, Palmer Square, ICE Data Services. October 2018 Historical trends do not imply, forecast, or guarantee future results. Please see the Disclosures and Risk Considerations at the end of this presentation.
100 bps
200 bps
300 bps
400 bps
500 bps
600 bps
700 bps
100 bps
150 bps
200 bps
250 bps
300 bps
350 bps
400 bps CLO Secondary BBB Spread (LHS)US High Yield BB OAS (LHS)US High Yield BBB OAS (LHS)CLO Secondary BB Spread (RHS)
$98
$99
$100
$101
$102
$103
$104
$105
$106
CLO Secondary BB Price
CLO Secondary BBB Price
US High Yield BB Price
US High Yield BBB Price
21
For Professional Client Use Only
Cross-sector Total Returns
CLOs have demonstrated attractive returns compared to similarly rated assets
2013 2014
5%
3%
8% 7%
5%
7% 7%
11%
0%
5%
10%
15%
US Loans CLO A Short-DurationHY
US HY BRated
US HY BBRated
Full MarketHY
CLO BBB CLO BB
2015
2% 1% 1% 1%
5%
3% 3% 2%
0%
5%
10%
15%
US Loans CLO A Short-DurationHY
US HY BRated
US HY BBRated
Full MarketHY
CLO BBB CLO BB
2016
2017
10% 7%
16% 17%
13%
17%
12%
22%
0%
5%
10%
15%
20%
25%
US Loans CLO A Short-DurationHY
US HY BRated
US HY BBRated
Full MarketHY
CLO BBB CLO BB
2018 – YTD
4% 4% 6% 7% 7% 7% 9%
17%
0%
5%
10%
15%
20%
25%
US Loans CLO A Short-DurationHY
US HY BRated
US HY BBRated
Full MarketHY
CLO BBB CLO BB
-1%
3%
-5% -5%
-1%
-5%
-1%
-6% -10%
-5%
0%
5%
US Loans CLO A Short-DurationHY
US HY BRated
US HY BBRated
Full MarketHY
CLO BBB CLO BB
_______________________ Source: Bloomberg, Bank of America, JP Morgan, S&P Leverage Loan and Commentary. Benchmarks are BAML High Yield Index, S&P/LSTA Leveraged Loan Index, BAML 0-5 year Constrained High Yield Index, J.P. Morgan CLO BBB and BB Indices. As of October 11, 2018. Historical trends do not imply, forecast, or guarantee future results. Please see the Risk Considerations section of this presentation.
4% 3%
3% 2%
-1%
1%
3%
5%
-5%
0%
5%
10%
US Loans CLO A Short-DurationHY
US HY BRated
US HY BBRated
Full MarketHY
CLO BBB CLO BB
2012
10%
17% 14% 15% 14% 16%
24% 29%
0%
10%
20%
30%
40%
US Loans CLO A Short-DurationHY
US HY BRated
US HY BBRated
Full MarketHY
CLO BBB CLO BB
22
For Professional Client Use Only
CLO Market Volumes
In recent history, a broad and deep market with meaningful trading volume
_______________________ Source: Interactive Data, September 2018. Data is notional trade volume for Non-Investment Grade (including unrated securities) in the category CBO/CDO/CLO. Historical trends do not imply, forecast, or guarantee future results. Please see the Risk Considerations section of this presentation.
Average Below-Investment Grade Daily Trading Volume ($mm)
$0
$50
$100
$150
$200
$250
Jan FebMar AprMayJun Jul AugSep Oct NovDec Jan FebMar AprMayJun Jul AugSep Oct NovDec Jan FebMar AprMayJun Jul AugSep Oct NovDec Jan FebMar AprMayJun Jul AugSep
2015 2016 2017 2018
23
For Professional Client Use Only
CLO Equity Excess Spread, Or “Arbitrage”
Arbitrage around tights as CLO debt spreads compressed significantly
0
100
200
300
400
500
600
Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014 Q3 2014 Q1 2015 Q3 2015 Q1 2016 Q3 2016 Q1 2017 Q3 2017 Q1 2018 Q3 2018
Early 2013 CLOs issued at a
near-low CLO Cost of Debt
Collateral spread lower
through 2017 into 2018
Q312 CLOs issued at high
cost of debt, followed by
falling spreads
Bps
Portfolio Spread (Spread over LIBOR)
CLO Cost of Debt (Spread over LIBOR)
Arbitrage (Portfolio less Cost of Debt)
Post-Crisis Low for
CLO Cost of Debt
_______________________ Source: Wells Fargo Securities, July 2018 Historical trends do not imply, forecast, or guarantee future results. Please see the Disclosures and Risk Considerations at the end of this presentation.
Q1-16 CLOs issued at
high cost of debt,
followed by falling spreads
24
NEUBERGER BERMAN ADVANTAGE
For Professional Client Use Only
CLO Debt – Neuberger Berman Advantage
Experienced team investing with a fundamental and quantitative strategy
Large and Experienced Non-Investment Grade and Structured Credit Team: 23 dedicated credit research analysts provide in-depth coverage for most loans included in CLO portfolios
Long History of Issuing and Managing CLOs: Issued 29 CLOs to date
Quality Focus: Focus on CLO portfolios that we believe provide the best downside protection
CLOs Issued Since 2004 28 CLOs
CLO Management AUM
$909m
Total Loan AUM $16.4bn
Non-Investment Grade AUM $42.0bn
Idea Generation / Sourcing
Investment opportunities sourced in primary and secondary markets
Proprietary system captures loan-level analysis on every CLO outstanding
Quality screen and relative value decisions driven by credit analyst team’s fundamental views on the underlying loans
Fundamentals Analysis
CLO Portfolio Analysis
CLO Manager Due Diligence
CLO Structure Analysis
CLO Documentation Review
_______________________ Historical trends do not imply, forecast, or guarantee future results. Please see the Risk Considerations section of this presentation. 1. Employee data as of September 30, 2018. AUM data as of September 30, 2018.This material is intended as a broad overview of the portfolio managers' style, philosophy and investment process and is subject to
change without notice. Portfolio managers' views may differ from those of other portfolio managers as well as the views of Neuberger Berman. Please see the Risk Considerations section of this presentation.
CLO Debt Tranche AUM
$7.5bn
26
For Professional Client Use Only
Integrated CLO Team Advantages
A single CLO team can provide unique insights
Collateral Manager on 29 CLOs since
2004
Current AUM of $7.5bn
Focused on downside risk mitigation
with upside potential
Raised ~$450m for CLO Risk Retention
CLO Collateral Manager
Focus on underlying portfolio quality with
bottom-up investment process
Uses same credit research team and
investment philosophy
Current AUM of ~$909m
Invests across the entire capital structure
CLO Tranche Investing
Individual Loan Credit Analysis
Deal Structuring and Covenants
Knowledge of active CLO Investors
Market Technicals & Loan Supply/Demand
Relationships with CLO Arrangers
Manager and Platform Evaluation
Superior credit analysis, market knowledge, and relationships differentiate the NB CLO Platform
_______________________ AUM data as of September 30, 2018.This material is intended as a broad overview of the portfolio managers' style, philosophy and investment process and is subject to change without notice. Portfolio managers' views may differ from those of other portfolio managers as well as the views of Neuberger Berman. Please see the Risk Considerations section of this presentation.
27
For Professional Client Use Only
CLO Investment Credit Process
Proprietary, disciplined approach to CLO investments seeks to maximize risk adjusted returns
_______________________ Please see the Risk Considerations section of this presentation. This material is intended as a broad overview of the portfolio managers' style, philosophy and investment process and is subject to change without notice. Portfolio managers' views may differ from those of other portfolio managers as well as the views of Neuberger Berman. Please see the Risk Considerations section of this presentation.
Portfolio Construction
CLO Investment
Credit Process
Underlying Portfolio
Analysis
Manager
Evaluation
Legal
Documents
Structure
Active Monitoring
Underlying Portfolio Analysis
• Loan-by-loan fundamental analysis aided
by 22-member credit analyst team
• Evaluation of portfolio concentration, tail
risk, liquidity, issuer strength
• Proprietary scenario analysis driven by
internal credit views to seek to avoid
downside
Manager Evaluation
• Evaluate manager behavior across
CLOs vintages
• Seek to identify implemented
investment philosophy and style drift
quickly and ahead of broader market
• Monitor credit analyst and PM team for
changes, expertise and performance
Legal Documents
• Each CLO is a bespoke transaction
with hundreds of pages of relevant
contractual language
• Certain restrictions or abilities
afforded to the collateral manager
can have material impact on
portfolios and cashflow profiles
• Seek to negotiate for
advantageous terms when
purchasing in the primary market
Structure
• Investment team has decades of
experience structuring, issuing and
managing CLOs
• Evaluate relative value opportunities
driven by structural differences
28
For Professional Client Use Only
Portfolio Construction Process
Fundamental credit approach aims to optimize return & volatility through market cycles
_______________________
This material is intended as a broad overview of the portfolio managers' style, philosophy and investment process and is subject to change without notice. Portfolio managers' views may differ from those of other portfolio managers as well as the views of Neuberger Berman. Please see the Risk Considerations section of this presentation.
CLO MANAGER DUE DILIGENCE
PORTFOLIO
CONSTRUCTION
• Estimated total US CLO outstandings of $500Bn+
• Estimated annual US CLO issuance of $100Bn+
PORTFOLIO SCREEN
Approximately 20% of the CLO market
INVESTMENT UNIVERSE
Driven by
Fundamental
Analysis
• Focused on high quality portfolios
• Seeks to eliminate: Heavy weighting towards less liquid issuers (EBITDA <$100MM) Lower credit quality portfolios
• Organizational set-up and AUM
• Investment team quality and experience
• Systems
• Detailed historical performance analysis
• Depth and size of team
• Fundamental / bottom-up analysis:
CLO structure CLO documentation CLO portfolio concentration limits
• Market opportunity Yield analysis Relative value
29
For Professional Client Use Only
Investment Process Framework
Proprietary Analytics and Platform Individual CLO Deep-Dive
Advanced integrated tools that aggregate underlying credit information (internal ranking, analyst notes, etc), security level data (price, spread, liquidity), and manager trading activity (style drift, performance)
Allows team to efficiently evaluate large volumes of potential investments for selective deeper analysis
Seek to quickly/easily exploit opportunities to take advantage of market dislocations caused by CLO market inefficiencies
Monitor and track investments and watchlists for trading opportunities
Loan-level detail mapped to fundamental outlook on credits
Fundamental assessment of collateral quality, manager style, trading activity, and potential losses
Credit selectivity with focus on long-term capital preservation
Detailed evaluation of deal structure, covenants, and triggers to seek to uncover value
Portfolio Management team approves investments with culture of shared risk and ownership
Differentiated with advanced and rigorous portfolio management process
_______________________
This material is intended as a broad overview of the portfolio managers' style, philosophy and investment process and is subject to change without notice. Portfolio managers' views may differ from those of other portfolio managers as well as the views of Neuberger Berman. Please see the Risk Considerations section of this presentation.
30
For Professional Client Use Only
CLO Quantitative Analysis
• Propriety analysis drives understanding and monitoring of
market structure. Seek to identify and capitalize on emerging
trends in CLO portfolios before broader market.
• CLO managers exhibit a wide range of styles
Buy and Hold
Active trader
Distressed Credit Picker
Risk Adverse
Highly Diversified/Concentrated Portfolio
• Vast trove of monthly reporting is available on every CLO of
the market, however investments required in systems to
synthesize and aggregate the data to investment actions can
be significant.
• For CLO tranches, manager and deal selection can be critical
not only for total returns, but also for reducing volatility of
returns and mark-to-market risk.
CLO managers and portfolios exhibit a wide range of styles and risk profiles that can be classified
_______________________
Source: Neuberger Berman, Intex, Markit, August 2017 2018.This material is intended as a broad overview of the portfolio managers' style, philosophy and investment process and is subject to change without notice. Portfolio managers' views may differ from those of other portfolio managers as well as the views of Neuberger Berman. Please see the Risk Considerations section of this presentation.
31
For Professional Client Use Only
CLO Mezzanine Composite Performance
Downside risk mitigation with upside potential
Return by Quarter Return Since Inception
-2.9%
-5.4% -4.7%
6.2%
12.5%
5.0%
7.0%
1.5% 2.6%
4.8%
1.5% 1.6%
-3.5%
-7.6%
-2.6%
5.0%
13.5%
4.9%
8.0%
2.7% 2.1% 3.5%
1.4% 2.1%
-10%
-5%
0%
5%
10%
15%
3Q 2015 4Q 2015 1Q 2016 2Q 2106 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018
NB Composite Index
(Jul – Dec)
10.1% 9.9%
Since Inception (p.a)
Data as of June 30, 2018. 1. Source: Neuberger Berman. Index performance is representative of the JP Morgan CLO BB Index and composite performance is the NB CLO Mezzanine Composite (gross of fees). Please see attached additional notes and
disclosures, which are required as part of this presentation. The performance presented is supplemental to the GIPS-compliant presentation included as part of this presentation in the back. Preliminary returns, based on unreconciled data.
Past performance is not necessarily indicative of future results. As with any investment, there is the possibility of profit as well as the risk of loss. Please see the Risk Considerations section of this presentation.
Excess Return:
+0.18%
Performance vs. Index1
32
For Professional Client Use Only
Risk Management
Firm-wide commitment of people, technology and an independent fixed income risk &
analysis team
RISK THEMES
• Daily position and exposure reports: Blackrock Aladdin, Intex
• Monitor primary and secondary markets for relative value opportunities
• Attribution to benchmark and absolute return to track performance and risk
• Evaluate portfolios to ensure underlying fundamentals are maintained
• Screen for issuers that our internal credit team are negative on
• Note large overweights in sectors or issuers that we believe could pose considerable risk
• Monitor trading activity for changes in styles, volumes, methodology
• Meet with each manager we invest with at least two times a year
• Note key changes in portfolio management personnel, firm ownership, and credit research team
• Pre- and Post-Trade Compliance
• Dedicated portfolio compliance staff
• Trade restrictions customized for each investment management agreement
Ongoing Monitoring
Portfolio Risk/Migration
Manager Monitoring
Portfolio Compliance
_______________________
This material is intended as a broad overview of the portfolio managers' style, philosophy and investment process and is subject to change without notice. ERISA For illustration purposes only and not intended to be a comprehensive description of all risk management practices. Please see the Risk Considerations section of this presentation.
33
FUND SUMMARY
For Professional Client Use Only
Fund Summary Terms – CLO Income Fund
Investment Manager Neuberger Berman Europe Limited
Sub – Investment Manager Neuberger Berman Investment Advisers LLC
Inception Date July 12, 2018
Structure UCITS
Structure
Includes EUR, USD, GBP, CHF, SEK
Distributing & accumulating
Investment Objective & Strategy
The fund’s objective will be to seek to generate an attractive level of total return, predominantly through interest income,
by primarily investing in CLO mezzanine floating rate debt and US high yield while also preserving investor capital through
active management of the portfolio.
Target Return LIBOR +4-5%
Average Credit Quality BB
Liquidity Fortnightly. Every Second Thursday.
Dealing cut-off six (6) business-days before Dealing Day
Redemption applications higher than 10% of fund NAV
At the discretion of the investment manager, redemptions in excess of 10% of fund NAV for any one Dealing Day may be
scaled down pro-rata so that no more than 10% of total assets is redeemed on any one Dealing Day. Any redemptions
that are not fully met on such Dealing Day will be treated as redemptions on the next Dealing Day.
Fees / Expenses Institutional share class: 0.75%
Operating Expenses: capped at 0.30%
Fund Codes ISIN: IE00BG7PQ018 (Euro Institutional Accumulating)
Base Currency US Dollars
_______________________
Other terms and conditions may apply and are subject to change without notice.
35
For Professional Client Use Only
_______________________ Source: Aladdin, Blackrock, Intex as of September 28, 2018. Differences in allocation are due to rounding. Portfolio statistics are based on traded investments. 1. Yield to worst shown in USD terms excluding FX forwards, incorporates forward LIBOR. 2. Credit Spread based on Discount Margin for CLOs and Government OAS for High Yield. 3. Traded securities balances that include unsettled positons, does not reflect negative traded cash balances or future anticipated transactions.
Neuberger Berman CLO Income Fund
Security Type Breakdown (% of investments)3 Summary Statistics
Yield to Worst (%)1 7.93
Credit Spread (bps) 2 533
Duration (yrs) 0.3
Modified Duration (yrs) 5.8
Average Rating BB-
Number of Bonds 50
Number of Issuers 50
Fund Market Value ($ USD mn) 97
Portfolio characteristics
Ratings Stratification (% of investments)
Current Yield Stratification (% of investments)
CLO, 86%
High Yield, 14%
0.0%
2.0%
1.0%
7.5%
84.2%
3.8%
1.0%
0.5%
BBB
BBB-
BB+
BB
BB-
B+
B
B-
0.0% 1.8%
10.4% 2.4%
2.1% 3.0%
7.2% 10.7%
71.5% 10.0%
0.0% 0.0%
4.0%4.5%5.0%5.5%6.0%6.5%7.0%7.5%8.0%8.5%9.0%9.5%
36
RISK CONSIDERATIONS
For Professional Client Use Only
Risk Considerations
An investment in notes in a CLO Income fund involves risks. The following list of risk factors is a preliminary summary only and is qualified in its entirety by the more detailed description of the
risk factors described in the 'investment risk' section of the prospectus for details.
Market Risk: The risk of a change in the value of a position as a result of underlying market factors, including among other things, the overall performance of companies and the market
perception of the global economy. Volatility in Market. In recent years, securities issued in securitization transactions have experienced significant fluctuations in market value and accordingly
high price volatility relative to historical experience. There is no assurance that such volatility will not continue or (to the extent it has eased) return.
Liquidity Risk: The risk that the Fund may be unable to sell an investment readily at its fair market value. In extreme market conditions this can affect the Fund’s ability to meet redemption
requests upon demand. CLO securities are generally illiquid and dealer marks and valuations provided may not represent prices where assets can actually be purchased or sold in the market
from time to time. Accordingly, the mark-to-market value of CLOs maybe volatile and the value of the relevant interests could likewise be volatile.
Credit Risk: The risk that debt instrument issuers may fail to meet their interest repayments, or repay debt, resulting in temporary or permanent losses to the Fund.
Interest Rate Risk: The risk of interest rate movements affecting the value of fixed-rate bonds.
Operational Risk: The risk of direct or indirect loss resulting from inadequate or failed processes, people and systems including those relating to the safekeeping of assets or from external
events.
Counterparty Risk: The risk that a counterparty will not fulfil its payment obligation for a trade, contract or other transaction, on the due date.
Currency Risk: Investors who subscribe in a currency other than the base currency of the Fund are exposed to currency risk. Fluctuations in exchange rates may affect the return on
investment.
Default Risk: As a holder of CLO equity, a Portfolio will have limited remedies available upon the default of an obligor of the collateral underlying such CLO. For example, from time to time,
the market for CLO transactions has been adversely affected by a decrease in the availability of senior and subordinated financing for transactions, in part in response to regulatory pressures
on providers of financing to reduce or eliminate their exposure to such transactions.
Concentration. The concentration of an underlying portfolio in any one obligor would subject the related CLOs to a greater degree of risk with respect to defaults by such obligor, and the
concentration of a portfolio in any one industry would subject the related CLOs to a greater degree of risk with respect to economic downturns relating to such industry.
Collateral Risk: The collateral may primarily consist of non-investment grade senior secured loans, which have greater credit and liquidity risk than more highly-rated securities. The
collateral may include debt obligations which may be unsecured, or may have been issued in connection with highly leveraged transactions or may be subordinated to certain other
obligations of the underlying obligors. The lower rating of these obligations reflects a greater possibility that adverse changes in the financial condition of an obligor or in general economic
conditions or both may impair the ability of such obligor to make payments of principal and interest.
CLO Issuer Risk: The issuer of a CLO will generally be a newly formed entity. As a newly formed entity, the issuer will have no prior operating history. The issuer will have no significant
assets other than the collateral (portfolio investments and other assets of the issuer). CLO issuers may acquire interests in loans and other debt obligations by way of sale, assignment or
participation. The purchaser of an assignment typically becomes a lender under the credit agreement with respect to the loan or debt obligation; however, its rights can be more restricted
than those of the assigning institution. In purchasing participations, a CLO issuer will usually have a contractual relationship only with the selling institution, and not the borrower. The CLO
issuer generally will have neither the right directly to enforce compliance by the borrower with the terms of the loan agreement, nor any rights of set-off against the borrower, nor have the
right to object to certain changes to the loan agreement agreed to by the selling institution. The CLO issuer may not directly benefit from the collateral supporting the related loan and may be
subject to any rights of set-off the borrower has against the selling institution. In addition, in the event of the insolvency of the selling institution, under U.S. federal and state laws, the CLO
issuer may be treated as a general creditor of such selling institution, and may not have any exclusive or senior claim with respect to the selling institution’s interest in, or the collateral with
respect to, the loan. Consequently, the CLO may be subject to the credit risk of the selling institution as well as of the borrower.
Risks of Investing in the Neuberger Berman CLO Income fund
38
For Professional Client Use Only
Risk Considerations
Credit Ratings. Any credit ratings of certain of the notes, or the loans and other assets that may comprise the collateral, represent the rating agencies’ opinions regarding their credit quality
and are not a guarantee of future credit performance of such securities. Rating agencies attempt to evaluate the safety of principal and interest payments and do not evaluate the risks of
fluctuations in market value. Therefore, the ratings assigned to securities by rating agencies may not fully reflect the true risks of an investment. Also, the rating agencies may not make timely
changes in credit ratings in response to subsequent events so that an issuer’s current financial condition may be better or worse than a rating indicates. Ratings may be subject to revision or
withdrawal by a rating agency at any time including to the extent the issuer doesn’t comply with its obligation under European and US regulatory and supervisory framework. Rating
reductions or withdrawals may occur for any number of reasons and may affect numerous assets at a single time or within a short period of time, which in turn may have a material adverse
effect upon the notes.
Leveraged Capital Structure. A CLO will generally be substantially leveraged. Use of leverage is a speculative investment technique and involves certain risks to investors in the notes. The
leverage provided to the issuer by the issuance of the notes will result in interest expense and other costs incurred in connection with such borrowings that may not be covered by the net
interest income, dividends or other proceeds of the collateral or any appreciation thereof. The use of leverage generally magnifies the issuer’s opportunity for gain and risk of loss.
Subordinated CLO security risk. A substantial amount of the Fund’s investments may be subordinated to most or all other securities of the relevant CLO issuer and most or all other
amounts due under the priority of payments set forth in the operative documents of such CLO issuer. As such, the greatest risk of loss relating to defaults in the collateral underlying such
CLO is borne by the Fund’s investments. The Fund, therefore, as holder of such investments, will rank behind most or all of the creditors, whether secured or unsecured and known or
unknown, of such CLO issuer. Further, CLO equity will not be a secured debt of the applicable CLO. In addition, the senior most class of notes then outstanding in the capital structure (the
“Controlling Class”) will be entitled to exercise certain rights which are superior and may be detrimental to the holders of any class of notes which is subordinated to the Controlling Class.
Payments in Respect of the Subordinated Notes. The issuer will generally pledge substantially all of its assets to secure the secured notes and certain other obligations pursuant to an
indenture. The proceeds of such assets will only be available to make payments in respect of the subordinated notes as and when such proceeds are released from the lien of such indenture
in accordance with the priority of payments that will be set forth therein. There can be no assurance that, after payment of principal and interest on the secured notes and other fees and
expenses in accordance with such priority of payments, the issuer will have funds remaining to make distributions in respect of the subordinated notes.
General Market Risk with Respect to Collateral Performance. Negative economic trends nationally as well as in specific geographic areas of the United States continue to be indicators of
potential loan defaults and delinquencies. The levels of defaults and delinquencies have been increasing and/or volatile, and there is a material possibility that economic activity will continue
to be volatile or to slow. Some obligors may have been significantly and negatively impacted by such negative economic trends. A continuing decreased ability of obligors to obtain
refinancing (particularly as high levels of required refinancings approach) may result in a further economic decline that could delay an economic recovery and cause a further deterioration in
loan performance generally. There is no way to determine whether such trends in the credit markets will improve or worsen in the future.
Illiquidity in the CLO, Leveraged Finance and Fixed Income Markets may Affect the Holders of Notes. A severe liquidity crisis in the global credit markets has resulted in substantial
fluctuations in prices for leveraged loans and high-yield debt securities and limited liquidity for such instruments. No assurance can be made that the conditions giving rise to such price
fluctuations and limited liquidity will not continue or become more acute. During periods of limited liquidity and higher price volatility, an issuer's ability to acquire or dispose of collateral at a
price and time that the issuer deems advantageous may be severely impaired. Regardless of current or future market conditions, certain items of collateral purchased by an issuer will have
only a limited trading market (or none). Illiquid debt obligations may trade at a discount from comparable, more liquid investments.
No Information on the Obligors. Investors generally have limited rights to obtain from the collateral manager information regarding the obligors on the collateral. The collateral manager may
from time to time receive material non-public information or other notices with respect to assets comprising the collateral or the obligors thereon which they will not be required to disclose to
investors. The collateral manager has no obligation to keep investors informed as to matters arising in relation to any obligors on the collateral.
No Market for Notes. Transfer Restrictions. Generally no market will exist for CLO notes. If a secondary market does develop, there can be no assurance that it will provide holders of notes
with liquidity on investment or that it will continue for the life of notes. In addition, CLO notes are subject to certain transfer restrictions. Consequently, an investor in CLO notes must be
prepared to hold such notes for an indefinite period of time or until their stated maturity.
Risks of Investing in the Neuberger Berman CLO Income fund – continued
39
For Professional Client Use Only
Risk Considerations
Final Maturity, Average Life and Prepayment Considerations. The average lives of notes are expected to be shorter than the number of years until the final stated maturity date, and their
average lives may vary due to various factors affecting the early retirement of the collateral, the timing and amount of sales of collateral and the ability of the collateral manager to invest in
additional collateral. Retirement of the collateral prior to final maturity will depend, among other things, on the financial condition of the obligors on the underlying collateral and the respective
characteristics of such collateral, including the existence and frequency of exercise of any optional redemption, mandatory redemption or sinking fund features, the prevailing level of interest
rates, the redemption prices, the actual default rates and the actual amount collected on any defaulted collateral and the frequency of tender or exchange offers for such collateral. In
particular, loans are generally prepayable at par, and a high proportion of loans could be prepaid. The ability of the issuer to reinvest proceeds in securities with comparable interest rates that
satisfy the reinvestment criteria specified herein may affect the timing and amount of payments received by the holders of notes and the yield to maturity of notes.
Limited Recourse Obligations. CLO notes will be limited recourse obligations of the issuer and secured notes will be non-recourse obligations of the co-issuer. Distributions of interest on
and principal of notes will be payable solely from the collateral pledged to secure the secured notes. The issuer, as a special purpose entity, will have no significant assets other than the
collateral. The issuer will not be obligated to make any payments on notes from a source other than such pledged collateral. No person other than the co-issuers will be obligated to make
payments on the notes. Consequently, holders of the notes must rely solely upon distributions on the collateral for the payment of amounts payable in respect of the notes. If distributions on
such collateral are insufficient to make payments on the notes, no other assets of the issuer or any other person or entity will be available for the payment of the deficiency.
Projections. Cash-flow projections are based on assumptions that are unlikely to be consistent with, and may differ materially from, actual events. Actual events will vary from projections and
the variations may be material. Some important factors that could cause actual results to differ materially from projections include the actual composition of the portfolio, and defaults in
respect of the portfolio, the timing of any defaults and recoveries, changes in interest rates, loan prepayments, price of assets, spread on assets, liquidity of loans, the ability of the issuer to
reinvest in new assets or remain fully invested, and any weakening of the specific investments included in the portfolio, among others.
Collateral Manager: Performance. The collateral manager’s performance history in other transactions may not be indicative of future results including any results it may achieve in this
transaction. The nature and risks associated with the issuer’s future investments may differ materially from those investments and strategies historically undertaken by the collateral manager.
There can be no assurance that the collateral manager or the persons associated with it or any other entity or person will realize returns comparable to those achieved in the past or generally
available in the market. Because the composition of the collateral will vary over time, the performance of the notes depends heavily on the skills of the collateral manager in analyzing,
selecting and managing the collateral. As a result, the issuer will be highly dependent on the analytical and managerial experience of the collateral manager and certain of its officers and
employees to whom the task of managing the collateral has been assigned.
Collateral Manager: Conflict of Interests. Various potential and actual conflicts of interest may arise from the overall investment activity of the collateral manager and its affiliates and the
payment of management fees to the collateral manager.
Recent Developments with Respect to LIBOR. Recent information has called into question the integrity of the process for determining LIBOR, and the full implications of such information is
unknown at this time. An inaccurate LIBOR setting could have adverse effects on a CLO issuer and/or the holders of secured notes. For example, holders of secured notes would receive
lower dollar amounts as interest payments if LIBOR was artificially lower than a properly functioning market would otherwise set LIBOR. Other negative consequences of the perceived
inaccuracy of LIBOR could include fewer loans utilizing LIBOR as an index for interest payments and/or erratic swings in LIBOR, both of which could result in interest rate mismatches
between the issuer's assets and its liabilities and expose the issuer to cash shortfalls. Furthermore, questions surrounding the integrity in process for determining LIBOR may have other
unforeseen consequences, including potential litigation against banks and/or obligors on loans, which could result in a material and adverse effect on the issuer or the holders of notes.
In addition, recent events have indicated that the UK’s Financial Conduct Authority intends to cease sustaining LIBOR from the end of 2021, and for the development of alternative
benchmark rates. As of the date hereof, no specific alternative rates have been generally agreed in the market for debt obligations similar to CLO notes or underlying obligations. It is possible
that the LIBOR administrator and the panel banks could continue to produce LIBOR on the current basis after 2021, if they are willing and able to do so. However, the survival of LIBOR in its
current form, or at all, is not guaranteed until or after 2021 and, if LIBOR in its current form does not survive, it could cause a disruption in the credit markets generally, which could negatively
impact the market value and/or transferability of CLO securities and/or underlying senior floating rate loans.
Risks of Investing in Neuberger Berman CLO Income fund – continued
40
For Professional Client Use Only
Risk Considerations
Risks of Investing in Loans. The underlying collateral will be comprised primarily of loans, which will be obligations of corporations, partnerships or other entities or participation interests in
such loans. Loans may become non-performing for a variety of reasons. Nonperforming loans may require substantial workout negotiations or restructuring that may entail, among other
things, a substantial reduction in the interest rate and/or a substantial write-down of the principal of a loan, in addition to the devotion of substantial resources of the manager and the
incurrence of substantial costs to the CLO. In addition, because of the unique and customised nature of a loan agreement and the private syndication of a loan, certain loans may not be
purchased or sold as easily or as quickly as publicly traded securities, and historically the trading volume in the loan market has been small relative to the corporate bond market. Loans may
encounter settlement delays which may be significant due to their unique and customised nature, and transfers may require the consent of an agent bank, borrower or other persons.
Risk Retention: Beginning 1 January 2019, the Fund will become subject to certain risk retention and due diligence requirements. Amongst other things, these requirements will restrict the
Fund from investing in a CLO unless: (i) the originator, sponsor or original lender in respect of the relevant CLO has explicitly disclosed that it will retain, on an on-going basis, a net economic
interest of not less than 5% in respect of certain specified credit risk tranches or securitised exposures; and (ii) the Fund is able to demonstrate that it has undertaken certain due diligence in
respect of various matters. The Fund may be required to dispose of any CLOs that are non-compliant. Under such circumstances, the Fund could sustain losses.
Risks of Investing in the Neuberger Berman CLO Income fund - continued
41
COMPOSITE PERFORMANCE
For Professional Client Use Only
CLO Mezzanine Composite (Inception 8/1/2015)
Investment Performance Results – As of June 30, 2018
Compliance Statement • Neuberger Berman Group LLC ("NB", "Neuberger Berman" or the "Firm") claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS® standards.
Neuberger Berman was independently verified for the period January 1, 2011 to December 31, 2016. The GIPS® firm definition was redefined effective January 1, 2011. For prior periods there were two separate firms for GIPS® firm definition purposes and such firms were independently verified for the periods January 1, 1997 to December 31, 2010 and January 1, 1996 to December 31, 2010, respectively. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS® standards on a firm-wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS® standards. Verification does not ensure the accuracy of any specific composite presentation. The verification reports are available upon request.
Definition of the Firm • The firm is currently defined for GIPS® purposes as Neuberger Berman Group LLC, ("NB", "Neuberger Berman" or the "Firm"), and includes the following subsidiaries: Neuberger Berman Investment Advisers LLC, Neuberger Berman Europe Ltd.,
Neuberger Berman Asia Ltd., Neuberger Berman East Asia Ltd., Neuberger Berman Singapore Pte. Ltd., Neuberger Berman Taiwan Ltd, Neuberger Berman Australia Pty. Ltd., Neuberger Berman Trust Company N.A., Neuberger Berman Trust Company of Delaware N.A. and NB Alternatives Advisers LLC.
Policies • Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.
Composite Description • The CLO Mezzanine Composite (the "Composite") includes the performance of all fee-paying CLO Mezzanine portfolios, with no minimum investment, managed on a fully discretionary basis by the Non Investment Grade Fixed Income team. The
CLO Mezzanine strategy is designed for investors who seek to achieve total returns relative to a broad CLO mezzanine index. The principal objectives are high current income, lower volatility and capital preservation achieved through the avoidance of credit deterioration in the underlying portfolios, manager selection, and focus on structural protections. The Composite creation and performance inception date is August 2015. A complete list of Neuberger Berman's composites is available upon request.
Primary Benchmark Description • The benchmark is the JPM Collateralized Loan Obligation Index ("CLOIE"). The index is reflects the market for broadly-syndicated, arbitrage CLOs denominated in US dollars. CLOIE is divided by time period of origination (pre versus post crisis)
and is broken out further into five original rating classes (AAA, AA, A, BBB, BB). The specific benchmark for the CLO Mezzanine Strategy is the Post-Crisis BB CLOIE. The index is rebalanced monthly with daily reported index values.
Reporting Currency • Valuations are computed and performance is reported in U.S. Dollars.
Fees • Composite Gross of Fee returns are the return on investments reduced by any trading expenses incurred during the period. Composite Net of Fee returns are the Gross of Fee returns reduced by investment advisory fees.
Fee Schedule • The annual investment advisory fee, generally payable quarterly, is as follows: 0.70% on the first $50mn; 0.65% on the next $50mn; 0.50% thereafter.
Internal Dispersion • Internal dispersion is calculated using the asset-weighted standard deviation of annual gross returns of those portfolios that were in the Composite for the entire year. Internal dispersion is not calculated if the Composite does not contain at least 6
portfolios for the entire year.
Annualized Standard Deviation • The three-year annualized standard deviation measures the variability of the Composite and the benchmark returns over the preceding 36-month period. The standard deviation is not required for periods prior to 2011. Past performance is no guarantee of future results. Please see attached important disclosures which contain complete performance information and definitions.
Composite Benchmark Composite 3 Year Standard Deviation
Total Return
(%, Gross
of Fees)
Total Return
(%, Net
of Fees)
JPM
Collateralized
Loan Obligation
Index ("CLOIE")
(%)
No. of
Accounts
Market Value
($, m)
Total Firm
Assets
($, bn)
% of Firm
Assets
Internal
Dispersion
Composite
(%)
JPM Collateralized
Loan Obligation
Index ("CLOIE")
(%)
YTD Jun-
20183.16 2.82 3.49 8 231.9 -- -- -- -- --
2017 16.77 16.02 17.18 10 303.4 295.2 0.10 -- -- --
2016 19.52 18.75 21.72 ≤ 5 35.4 255.2 0.01 -- -- --
5 Months
2015-8.14 -8.34 -10.84 ≤ 5 67.4 240.4 0.03 -- -- --
43
DISCLOSURES
For Professional Client Use Only
Disclosures
S&P/LSTA Leveraged Loan Index: The S&P/LSTA Leveraged Loan Index is a subset of the S&P/LSTA Leveraged Loan index, which is is a daily total return index that uses LSTA/LPC Mark-
to-Market Pricing to calculate market value change. On a real-time basis, the S&P/LSTA Leveraged Loan index tracks the current outstanding balance and spread over LIBOR for fully funded
term loans. The facilities included in the index represent a broad cross section of leveraged loans syndicated in the United States, including dollar-denominated loans to overseas issuers.
BAML High Yield Index: The BofA Merrill Lynch US High Yield Index tracks the performance of US dollar denominated below investment grade rated corporate debt issued in the US
domestic market. This index can be broken out into subsets by rating.
BAML 0-5 year Constrained High Yield Index: The BofA Merrill Lynch US Corporate 0-5 Constrained Index value, a subset of the BofA Merrill Lynch US High Yield Master II Index tracking
the performance of US dollar denominated below investment grade rated corporate debt issued in the US domestic market that have a remaining maturity of less than 5 years.
J.P. Morgan CLO Index: The J.P. Morgan Collateralized Loan Obligation Index (CLOIE) is a benchmark to reflect the market for US dollar denominated broadly-syndicated, arbitrage CLOs.
The CLOIE index is comprised solely of cash, arbitrage collateralized loan obligations (CLOs) backed by broadly syndicated leveraged loans. The CLOIE index is rebalanced at the close of
the last business day of each month, following the US holiday calendar. New transactions that meet our inclusion criteria and have been priced by PricingDirect in the prior month will be
incorporated into the index on the next rebalancing date. The Post-Crisis index includes CLOs issued after 2009 and credit rating is determined by lowest NRSRO rating.
Benchmarks
45
For Professional Client Use Only
Disclosures
Notice to investors in Argentina: This document it is addressed only to you on an individual, exclusive, and confidential basis, and its unauthorised copying, disclosure or transfer by any
means whatsoever is absolutely and strictly forbidden. The information contained in this document is for general guidance only, and it is the responsibility of any person or persons in
possession of this document to inform themselves of, and to observe, all applicable laws and regulations of any relevant jurisdiction. This document does not constitute a public offer of
securities in Argentina and as such it is not and will not be registered with, or authorised by, the Argentine Securities Commission.
Notice to investors in Chile: This private offer avails itself of the General Regulation No. 336 of the Superintendence of Securities and Insurances, currently the Financial Markets
Commission. This offer relates to securities not registered with the Securities Registry or the Registry of Foreign Securities of the Financial Markets Commission, and therefore such securities
are not subject to oversight by the latter; Being unregistered securities, there is no obligation on the issuer to provide public information in Chile regarding such securities; and These
securities may not be subject to a public offer until they are registered in the corresponding Securities Registry.
Notice to investors in Panama: This is not a public offering. This document is only for the exclusive use of institutional investors. The securities mentioned in this document have not been
registered with nor fall under the supervision of the Superintendence of the Securities Market of Panama. The distribution of this document and the offering of shares may be restricted in
certain jurisdictions. The above information is for general guidance only, and it is the responsibility of any person or persons in possession of this document and wishing to make application
for shares to inform themselves of, and to observe, all applicable laws and regulations of any relevant jurisdiction. Prospective applicants for shares should inform themselves as to legal
requirements also applying and any applicable exchange control regulations and applicable taxes in the countries of their respective citizenship, residence or domicile. This document does
not constitute an offer or solicitation to any person in any jurisdiction in which such offer or solicitation is not authorised or to any person to whom it would be unlawful to make such offer or
solicitation.
Notice to investors in Peru: The fund has not been registered before the Superintendencia del Mercado de Valores (SMV) and is being placed by means of a private offer. SMV has not
reviewed the information provided to the investor. This document is only for the exclusive use of institutional investors in Peru and is not for public distribution.“
Notice to investors in Uruguay: The sale of the shares/units qualifies as a private placement pursuant to section 2 of Uruguayan law 18,627. The shares/units must not be offered or sold to
the public in Uruguay, except in circumstances which do not constitute a public offering or distribution under Uruguayan laws and regulations. The product is not and will not be registered
with the Financial Services Superintendency of the Central Bank of Uruguay. The product corresponds to investment funds that are not investment funds regulated by Uruguayan law 16,774
dated September 27, 1996, as amended.
County Disclaimers
46
For Professional Client Use Only
Disclosures
Institutional-Oriented Equity and Fixed Income AUM Benchmark Outperformance Note: Institutional-oriented equity and fixed income assets under management (“AUM”) includes the firm’s equity and fixed income institutional
separate account (“ISA”), registered fund, and managed account/wrap (“MAG”) offerings and are based on the overall performance of each individual investment offering against its respective benchmark offerings and are based on
the overall performance of each individual investment offering against its respective benchmark. High net worth/private asset management (“HNW”) AUM is excluded. For the period ending June 30, 2018, the percentage of total
institutional-oriented equity AUM outperforming the benchmark was as follows: Since Inception: 90%; 10-year: 44%; 5-year: 78%; and 3-year: 73%; and total institutional-oriented fixed income AUM outperforming was as follows:
Since Inception: 95%, 10-year: 82%; 5-year: 69%; and 3-year: 68%. If HNW AUM were included, total equity AUM outperforming the benchmark was as follows: Since Inception: 88%; 10-year: 31%; 5-year: 55%; and 3-year: 53%; and
total fixed income AUM outperforming was as follows: Since Inception: 94%; 10-year: 82%; 5-year: 69%; and 3-year: 68%. Equity and Fixed Income AUM outperformance results are asset weighted so individual offerings with the
largest amount of assets under management have the largest impact on the results. As of 6/30/2018, six institutional-oriented equity offerings accounted for approximately 54% of the total firm institutional-oriented equity AUM
reflected, and nine institutional-oriented fixed income offerings accounted for approximately 53% of the total firm institutional-oriented fixed income AUM reflected. Performance for the individual offerings reflected are available upon
request. AUM for multi-asset class, balanced and alternative (including long-short equity or fixed income) offerings, as well as AUM for hedge fund, private equity and other private investment vehicle offerings are not reflected in the
AUM outperformance results shown. AUM outperformance is based on gross of fee returns. Gross of fee returns do not reflect the deduction of investment advisory fees and other expenses. If such fees and expenses were reflected,
AUM outperformance results would be lower. Investing entails risk, including possible loss of principal. Past performance is no guarantee of future results.
Private Equity Outperformance Note: The performance information includes all funds, both commingled and custom, managed by NB Alternatives Advisers LLC with vintage years of 2005 – 2015, with the exception of a closed-end,
public investment company registered under the laws of Guernsey (the “Funds”). Accounts that are only monitored are excluded. Vintage years post 2015 are excluded as benchmark information is not yet available. Please note that
private debt funds are also excluded as benchmark data is not yet available for the applicable vintages.
Percentages are based on the number of funds, calculated as the total number of funds whose performance exceeds their respective benchmarks divided by the total number of all funds with vintage years of 2005 through 2015.
Performance is measured by net IRR, MOIC, and DPI and is compared to the respective index’s median net IRR, MOIC and DPI, respectively. The Cambridge Secondary Index was used for secondary-focused funds; the Cambridge
Buyout and Growth Equity for US and Developed Europe was used for co-investment-focused funds; the Cambridge Fund of Funds Index was used for commingled funds and custom portfolios comprised of primaries, secondaries
and co-investments; and the Cambridge Global Private Equity was used for strategies focused on minority stakes in asset managers fund and healthcare credit.
The Cambridge Associates LLC indices data is as of December 31, 2017, which is the most recent data available. The Cambridge Associates Fund of Funds Index is the benchmark recommended by the CFA Institute for
benchmarking overall private equity fund of funds performance. The benchmark relies on private equity funds self-reporting data for compilation and as such is subject to the quality of the data provided. The median net multiple of
Cambridge Associates Fund of Funds Index is presented for each vintage year as of December 31, 2017, the most recent available. Cambridge Associates data provided at no charge.
While one of the secondary funds closed in 2008, Cambridge Associates classifies that particular fund as a 2007 vintage year fund (the year of its formation) and, therefore, the Cambridge Associates benchmarks used herein are for
2007 vintage year funds.
Private Offerings: Certain strategies referenced herein may only be available through a private offering of interests made pursuant to offering and subscription documents, which will be furnished solely to qualified investors on a
confidential basis at their request for their consideration in connection with an offering. These documents will contain information about the investment objective, terms and conditions of an investment in such vehicle and will also
contain tax information and risk disclosures that are important to an investment decision. Any decision to invest in such vehicle should be made after a careful review of these documents, the conduct of such investigations as an
investor deems necessary or appropriate and after consultation with legal, accounting, tax and other advisors in order to make an independent determination of the suitability and consequences of an investment in such vehicle.
Firm Slides
47
For Professional Client Use Only
Disclaimer
This document is addressed to professional clients only.
This document is a financial promotion and is issued by Neuberger Berman Europe Limited, which is authorised and regulated by the Financial Conduct Authority and is registered in England and Wales, at Lansdowne
House, 57 Berkeley Square, London, W1J 6ER and is also a Registered Investment Adviser with the Securities and Exchange Commission in the U.S. and regulated by the Dubai Financial Services Authority.
This fund is a sub-fund of Neuberger Berman Investment Funds PLC, authorised by the Central Bank of Ireland pursuant to the European Communities (Undertaking for Collective Investment in Transferable Securities)
Regulations 2011, as amended. The information in this document does not constitute investment advice or an investment recommendation and is only a brief summary of certain key aspects of the fund. Investors should
read the prospectus and the key investor information document (KIID) which are available on our website: www.nb.com/europe/literature. Investment objectives, risk information, fees and expenses and other important
information about the fund can be found in the prospectus.
Notice to investors in Switzerland: Neuberger Berman Investment Funds plc is established in Ireland as an investment company with variable capital incorporated with limited liability under Irish law, and the sub-funds
are also authorised by the Swiss Financial Market Supervisory Authority (FINMA) for distribution to non-qualified investors in and from Switzerland. The Swiss representative and paying agent is BNP Paribas Securities
Services, Paris, succursale de Zurich, Selnaustrasse 16, CH-8002 Zürich, Switzerland. The prospectus, the key investor information documents, the memorandum and articles of association and the annual and semi-
annual reports are all available free of charge from the representative in Switzerland.
This document is presented solely for information purposes and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security.
We do not represent that this information, including any third party information, is complete and it should not be relied upon as such.
No recommendation or advice is being given as to whether any investment or strategy is suitable for a particular investor. Each recipient of this document should make such investigations as it deems necessary to arrive
at an independent evaluation of any investment, and should consult its own legal counsel and financial, actuarial, accounting, regulatory and tax advisers to evaluate any such investment.
It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable.
Any views or opinions expressed may not reflect those of the firm as a whole.
All information is current as of the date of this material and is subject to change without notice.
The fund described in this document may only be offered for sale or sold in jurisdictions in which or to persons to which such an offer or sale is permitted. The fund can only be promoted if such promotion is made in
compliance with the applicable jurisdictional rules and regulations. This document and the information contained therein may not be distributed in the US.
Indices are unmanaged and not available for direct investment.
An investment in the fund involves risks, with the potential for above average risk, and is only suitable for people who are in a position to take such risks. For more information please read the prospectus which can be
found on our website at: www.nb.com/europe/literature.
Past performance is not a reliable indicator of current or future results. The value of investments may go down as well as up and investors may not get back any of the amount invested. The performance data does not
take account of the commissions and costs incurred on the issue and redemption of units.
The value of investments designated in another currency may rise and fall due to exchange rate fluctuations in respect of the relevant currencies. Adverse movements in currency exchange rates can result in a
decrease in return and a loss of capital.
Tax treatment depends on the individual circumstances of each investor and may be subject to change, investors are therefore recommended to seek independent tax advice.
Investment in the fund should not constitute a substantial proportion of an investor’s portfolio and may not be appropriate for all investors. Diversification and asset class allocation do not guarantee profit or protect
against loss.
No part of this document may be reproduced in any manner without prior written permission of Neuberger Berman Europe Limited.
The “Neuberger Berman” name and logo are registered service marks of Neuberger Berman Group LLC.
© 2018 Neuberger Berman Group LLC. All rights reserved.
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